10622 The original bill guaranty was 50 percent up to 64,000. 2. Unremarried widows of deceased vet- erans who died in service or from service- connected cause after discharge were made eligible for GI home loan benefits on the same basis as thelr husbands would have been, 8. Terms of loan extended from 25 to 30 years. This makes posstble lower monthly payments. 4. The veterans’ housing bill authorizes $150,000,000 for direct Government loans at 4 percent interest to veterans in areas where home financing is not available from private sources—these areas to be detormined by the Veterans’ Administration, 5. The new housing act includes provisions to make GI loans for farm homes more read- ily available. Approximately 2,000,000 veterans have ree ceived the benefit of the Government guar-~ anty program on GI loans for homes, busi- ness, and farm purposes, Here's the break~ down: Number of Type of loan: veterans Home loan guaranty......-. - 1,818, 000 Farm loan guaranty 55, 000 Business loan guaranty_..... 118, 000 Approximate value of all loans, $11,000,- 009,000, Notz.—If you want more detailed informa. tion on this program, write to me. ITEMS OFF MY DESK 1. The rent control bill authorizing 6 months’ extension of existing rent control passed the Senate 36 to 25. I voted for it, 2. Social security extension is the pend- ing business of the Senate. The Senate bill in some ways improves the program adopted by the House. It extends coverage and in- creases some benefits. Next week's News- letter will carry full account. The Senate bill eliminated disability insurance. I am a cosponsor of an amendment to restore this provision to Senate bill and cosponsor of amendments to increase old-age assistance and medical service benefits. Congress will greatly improve the social security law. Old-age insurance benefits will be doubled and coverage extended to apprcximately 9,000,000 additional persons. Increased benefits for aid to dependent children and th? blind will be provided. 8. Basing point: I joined with Senators Dovuaias, HILL, SPARKMAN, and KEFAUVER in a visit to the White House urging President Truman to veto the basing-point bill. I Was part of this team in our fight to defeat this bill on the Senate floor, The so-called basing-point bill represents another attack on our antimonopoly and antitrust legisla. tion. This bill, if tt becomes law, will seri« ously jeopardize independent business and the Industrial development of the Midwest and South. Basing point in a nutshell is the old “Pittsburgh plus" system, legalized so as to keep out competition. The basing-point bill had the active sup- port of big steel, the cement monopoly, and other big industries. It was opposed by every small business organization in the country. Copies of my remarks on this vital issue are available, It is strange to note that very little was said in the press about basing point during debate, yet this is one of the most important igsucs that has faced the Congress. If big businers wins this fight it will be a major victory for monopoly and economic concen- tration. Basing point to independent bust- ness wou'd be as ruinous ag the Kerr gas bill was to the consumers, %. Small business: Speaking of small business, it was a year ago that I obtained passage of my amendment to the armed Services appropriation bill providing assist- ance to Amcrican small business. Secretary JoJanecn hag reported to me the activities of CONGRESSIONAL RECORD—SENATE his Department in carrying out the purposes of my amendment. I quote from the Secre- tary's letter of June 5: “In accordance with the legislative man- date, on December 22, 1949, I appointed the Honorable Paul H. Griffith, Assistant Secre~ tary of Defense, as my small-business advisor. In this capacity, Mr. Griffith was responsible for the development of a cooperative agree- ment between the Department of Defense, the Department of Commerce, and the Gen- eral Services Administration, which provides for the speedy transmission of procurement information to interested parties. While the original agreement provided for ap- proximately 150 separate geographical places were businessmen would have direct access to this information, the program has been enlarged to the point that competitive bid information is now available through 931 separate outlets in 650 cities throughout the 48 States including the District of Columbia and the Territory of Hawaii. “Through our educational and informa- tion program we have made an effort to acquaint all businessmen, and particularly Emall-business men, of their opportunity to participate in military procurement. Through their inquiries and correspondence with the military procurement agencies, pur- chasing and contracting offices of the De- partment of Defense have been provided with information concerning the commod- ities and services available from many small independent enterprises. “It 1s my intention to continue our small- business program beyond the limits of the current fiscal year in an offort to insure small-business men the opportunity of par- ticipating in the military procurement program.” Slowly but surely, we are making progress, The Senate has established a Special Com- mittee on Small Business, of which I am a member, Senator Tosry and mysclf are working with the Munitions Board and the Department of Defense to further the cause of small business in obtaining government contracts. 5. The Marshall plan: I thought you might want to see what Paul G. Hoffman, Administrator of ECA, had to say in his recent letter to me. Here’s the copy—it speaks for itself: “DeEaR SENATOR HUMPHREY: I would like to express my appreciation of the fine support you gave to the ECA legislation during the recent Senate debates. At this point, as we begin the third year of the Marshal plan, it is particularly necesrary that the accom- plishments of the program and its signiti- cance be discussed accurately and thoroughly so that the issues may be widely understood. Your contribution in this regard, and par- ticulafly your presentation of the significance of the Marshal plan to the national security of the United States, was most constructive and, I am sure, exerted substantial influence in producing the vote of confidence in the European recovery program which was given by the Senate. “Sincerely yours, “Pau. G. HorrMan, Administrator.” MINNESOTA FLOOD RELIEF The most critical problems facing Min- nesota are the flocded areas of the Red River Valley of the north and the upper Mississipp around Aitkin. Eighteen counties are af- fected by the flood. Estimated damage is over $11,000,000. I have visited the flood area on two occastons—on April 24 to the Red River area and on June 5 and 6 to the Upper Mississippi-Aitkin region, Here is my program to aid flood areas: 1. Legislation to provide financial aid to counties, cities, villages, and townships for road repair, culverts, bridges, and other pub- lic properties. 2. A bill tor the resurvey of all flood-con- trol projects in the Red River and Upper Mississippi area, JULY 19 8. Testified before the Senate Appropria- tions Committee urging immediate appro- priation of $2,000,000 for the balance of this year to the President’s emergency fund, This money could be made available for immedate assistance in Minnesota. 4. A bill to appropriate $10,000,000 to the President's emergency fund. VISIT THE PRESIDENT On Wednesday, June 14, the entire Min- nesota and North Dakota congressional dele- gations visited the President. It was my priviloge to be the spokesman for the group I presented to the President our program and described the flood conditions and the prob- lems facing our people, The President promised his help in securing prompt ac- tion on our flood-relief and flool-control pro- gram. All members of the Minnesota and North Dakota delegations are working as a team on these problems. PRESIDENT SUBMITS ADDITIONAL REORGANIZATION PLANS The President continues to work in be- half of improving the efficient and economic operation of the Government. Six addi- tional reorganization plans were submitted in the past week. One of these plans deals with the creation of a Department of Health, Welfare and Education. It was this proposal which was defeated last year with tremend- ous pressure being brought to bear by the American Medical Association. The new plan seems to have satisfied much of the objection of some of the Senators who voted against the establishment of a Depart- ment of Welfare in the first session. It ap- pears now that the crention of a new de- partment in the Cabinet will be successful. It is my intention to support this proposal. It follows the basic recommendations of the Hoover Commission report and gives thoso functions of government which deal with health, welfare, and education their appro- priate position in the Government, namely, a Cabinet post. Other reorganization plans deal primarily with the Federal loan activities such as the Reconstruction Finance Corpora- tion and the Federal National Mortgage As- scciation. These proposals are highly con- troversial and it is doubtful as to what will happen. A BILL FOR ASSISTANCE IN THE ESTABLISHMENT OF COMMUNITY HEALTH CENTERS Some months ago I introduced a bill, S, 1805, which would permit the Federal Gov- ernment to make loans and grants for the purpose of establishing rural community health centers. This proposal would supple- ment the Hill-Burton Hospital Construction Act. The Hospital Construction Act provides for Federal grants for the purpose of erecting hospitals. All hospital plans are cleared and approved by an appropriate State agency. Federal Government matches funds up to 60 percent. Minnesota has shared generously in the Federal funds and our State has been benefited by the construction of many hos- pitals in all sections of the State. The need, however, is not for major hos- pitals but for community health clinics or centers in some of the less populated areas and, in particular, the rural areas of Minne- sota and other States. The construction and maintenance of hospital facilities are very expensive, and many communities are not of suificient size to afford them. The bill that I have introduced, and upon which hearings have been held, would pro- vide for the construction of clinic facilities, commonly known as out-patient denart- ments. A small emergency ward of 6 to 10 hospital beds would be permissible. This number of beds would satisty emergency needs of the smaller community and yet not work an undue financial burden. My bill makes it possible for any nonprofit or co- operative association to build these facili- ties. The nonprofit or cooperative acsocla-
1950 tion would contract for the loan and would be held responsible for the construction, administration, and maintenance of the rural health clinic, These factlities would be open to all doctors and to all people. There would be no discrimination, I make this point because certain people have attempted to interpret this bill as boing a measure wholly directed toward benefiting the membership of a cooperative or a nonprofit group. This is entirely false. To be sure, the member- ship of such association would reccive the benefits of the facilities of the health clinic. However, the health clinic would be open to all people and would serve the entire com- munity. In other word, the principle used in this legislation is similar to the REA. Let me explain: REA funds are loaned to rural electrification cooperatives. The cooperative takes on the responsibility for borrowing the money, constructing the electric lines and generating plants, but it must serve all peo- ple who wish to use its services. The REA program has worked exceedingly well. The loans have been repaid, The people have been served, It is my orinion that the same principle would work with a rural health cooperative which would undertake the con- struction of a community health clinic. The loan provisions under S. 1805 are (1) 85-year loans, 2 percent interest anc! (2) grants will be made onl; where the local community is totally incapable of financing all of the construction. The “grant feasure” is a tentative proposal and may be renioved from the bill by the time it gets through committee. The opposition to this measurr, strange as it may seem, came from the American Med- ical Association. I regret this, since the AMA has vigorously supported the hospital construction program which is not a# Joan but an outright 60 percent grant. The AMA called my bill a subsidy and a socialist pro- posal. It appears to me that the Hospital Construction Act is the subsidy measure and this, as I said, was supported by the AMA. It should be added that I have supported this program of hospital construction and helped write the amended bill in the Eighty- first Congress. In a later report I will tell you about the developments on 8. 180". This bill means a great deal to the rural areas, It is a forward step in bringing modern med- ical care to the people. The people will pay their own bill and will have their own doc- tors. There will be no subsidy and no gove ernment compulsion, My bill simply makes it possible for rural communities to have modern medical facilities, which will be paid for by the people who use them, and will mean that new doctors will come into rural areas and find a moderr laboratory and clinic at their disposal. Your Sznaror REPorRTS (Weekly news letter from the desk of Huszet H. Humpurry, week of July 16, 1950) ECONOMY OR FALSE ECONOMY? The Korean crisis has brought foreign policy to the forefront. The people are ask- ing questions about our national defense and the general conditions and strength of our Armed Forces. The main points of our American foreign policy are based upon (1) the Marshall plan or ECA, (2) the North Atlantic Pact, (3) Military assistance, (4) the point 4 pro- gram for technological and scientific assist- ance to underdeveloped areas, (5) the Voice of America and other educational and in- formational services, (6) American partici- pation in the United Nations and ite support of UN agencies. National defense of course, means more than appropriations for the Armed Services alone. World War 1 taught us that national defense ts also based upon the conservation and development of our natural resources, CONGRESSIONAL RECORD—SENATE such as our forests, mines, waterways, and and, We learned the importance of hydro- electric power in World War II. In the be- ginning of that war, we had a 40 percent re- serve in electric power; today we have a 15 percent reserve. We learned the importance of adequate supplies of food in World War II. Land reclamation and irrigation was 9 basic factor in our war effort. The produc- tion of sugar beets, for example, was vital not only for food purposes but also for muni- tions. Expanded sugar beet production was made possible by irrigation and land recla- mation projects in Wyoming, Colorado, western South Dakota cnd other Western States, It is therefore very clear today that efforts to curtail our programs for conserva~ tion, inland waterways, public power, REA, agriculture, land reclamation, and irrigation were as short-sighted in the interests of our national defense as were efforts to cripple our armed services. The same can be said for efforts to cut the Marshall plan, the Voice of America, point 4, and our foreign infor mation and educational services. The economy experts, therefore, are now being severely criticized for short-sighted- ness and failing to realize that defense is @ total concept. American security is not fully protected by un Army, a Navy, and an Air Force alone. A militant, positive foreign policy is a fun- damental part of our national defense, American military power is dependent upon the ability of our industrial economy to pro- duce vast quantities of goods, and the ability of our agricultural economy to meet the requirements of total defense. In- dustrial production needs electric power and adequate transportation, The relation~ ship of hydroelectric public power, water transportation, reclamation, and irrigation to American industrial and agricultural pro- duction is clearly evident. All of these programs are vital to national security. Military power in great part de- pends upon long-range strength and pro- ductivity of industry, of land, and of people, QUICK ACTION With the Communist attack on South Korea the Senate quickly passed by unanl- mous vote (1) the extension of the draft and (2) the military assistance program as outlined under the terms of the North At- Jantic Pact. The votes were unanimous, The President will use the selective service to fill the ranks of Army, Navy, and Air Force, The present program calls for lim- ited use of selective service and a stepped-up program of voluntary enlistments, There will be extra pressure placed upon indus- trial firms to quickly fill the orders for mile itary equipment both of our national defense needs and for assistance to the North Atlane tic Pact countries, The word in Washington is that legislative proposals are ready for congressional action on (1) industrial mo- bilization, (2) civilian defense, (3) wage and price control, and (4) internal security measures. THE INTERNATIONAL SITUATION I strongly support the action taken by the President in compliance with the Security Council resolutions requesting assistance to restore the peace in Korea and to compel the North Koreans to retire to the 38th parallel, The President acted under the terms of our obligations to the UN and exercised his constitutional power to protect the security of our Nation and our inter- ests. All the debate as to whether or not the President went beyond his constitutional powers is surely not substantiated by Amer- ican history, The Library of Congress made available to the Congress a memorandum Mating 100 instances where the President of the United States had used the Armed 10623 Forces to protect national security and de- fend American interests. The Charter of the United Nations places added abligations upon the President and the Congress to comply with requests of the Security Council, The President also pledged American sid to the Philippines and to Indochina. The situation is particularly critical in southeast Asia, in the Indochina area. Indochina Communist forces are in active combat against government troops. America has an obligation to the Philtppines, and I strongly support the President's proposal of military aid and other assistance to this new repub- lic. The President's statement also in- cluded the use of the Seventh Fleet to “neu- tralize” Formosa until the status of this area ts finally settled by the United Nations or by treaty with Japan. AMERICAN POLICY IN THE FAR EAST The North Korean Communist attack crys- tallized American policy in the Far East. The President’s program is not a reversal of past State Department and Presidential policy; we have always been pledged to the aid of the Philippines; we have repeatedly assured the United Nations that we would support its efforts to maintain peace and order; the ECA authorization provided funds for the China area, which included Indo- china; military assistance also provided such funds. The North Korean attack ne- cessitated quick and positive action (this action followed the developments of policy in the Far East insofar as our commitments were concerned through treaty, UN, ECA, and military assistance). The President's statement of policy following the northern Korea attack is being altered and strength- ened on a day-to-day basis as the military operations develop in that area, It is crystal Clear that we are not going to be pushed around by Communist military pressure. It is equally clear that more attention will be paid to southeast Asia in the months to come. The Far East or Asiatic policy will include: 1. Our traditional policy of support for the territorial integrity and independence of the Asiatic nations. 2. Expanded and more generous economic assistance. 3. Military assistance in the form of sup~ plies and key personnel, 4. Strengthening of bases In the Philip- pines, Japan, Okinawa, and Guam, 6. Closer collaboration with Australia, New Z-aland, Great Britain, France, Indie, and other free countries. 6. Informational, educational, and prop- aganda offensive by the United Nations and Voice of America. INDIA On several occasions, speaking on the floor of the Senate, I have directed the attention of our Government to the newly founded Re- public of India. India's decision in the UN Security Council to support the resolution calling for the withdrawal of North Korean troops and urging the military ald of UN members to accomplish this order was most significant. The Government of India has attempted to preserve the precarious neu- trality in the UN tin the struggle between east and west. The decision of the Indian Government to Join with the United States and other powers to crack down on Com- munist aggression is possibly the most sig- nificant development thus far in the history of the United Nations and its efforts to pre- serve world peace, Just a few facts about India: India has a constitution similar to ours. Its govern- ment is headed by Prime Minister Nehru, a man of democratic principles and thoroughly grounded in the practice of democracy as understood by the United States, Great Britain, and other western countries, India
10624 has @ central government that can and does govern in all areas of the country. Her gov- ernment has besn undertaking vast pro- grams of social welfare, health, education, land reclamation, development of hydro- electric power, and industrial development. The population of India is well over 300,- 000,000. In World War I and World War II her soldiers fought side by side with the Allies, giving a splendid account of them- selves for their valor and courage. Indian governmental officials have been well edu- cated in British and American schools, most of them epeak English, and have a thorough Knowledge of Anglo-Saxon law and political institutions. India possesses the second largest steel-producing plant in the British Empire. She has a well-trained Army, Air Force, and small Navy. Her position in the Asiatic continent is of vital strategic import- ance. This was proven in World War II, and it will become more and more apparent as the struggle grows more difficult between Russia and her satellites and the rest of the world. It is my judgment that our rela- tionships with India are of the utmost ime portance for the present and the future. India's political leaders represent the en- lightened leadership of Asia. Prime Min- ister Nehru is looked upon as the foremost leader of democratic forces in the Asiatic area, The countries of Burma, Indonesta, Malay, Thailand, and others look to Nehru and his government for guidance in the development of policy and program for southeast Asia and what is termed as the subcontinent. Recently I had the privilege of being host to Bishop Pickett, outstanding church leader in India. Bishop Pickett was on a visit to the United States giving lectures throughout the country on India and her relationships with the United States. The bishop heads the work of the Methodist Church in India and has lived in that country for 40 years, He was an intimate friend of the late Ghandl and is a close personal friend of Prime Min- ister Nehru. Bishop Pickett and I spent 2 hours with the Under Secretary of State, Mr. Jumes Webb, discussing American relation- ships with India. I entertained the bishop at a Juncheon attended by Vice President Barkley; the President’s new foreign affairs adviser, Averill Harriman; and Senators McMahon, Douglas, Graham, Murray, Benton, Lehman, and Green. I have every reason to brlieve that in the months to come, Ameri- can-Indian relationship will he in the news. Much more attention will be paid to the policy and decisions of the Indian Govern- ment both in the United Nations and in her diplomatic relationships with the United States, WHERE DO WE GO FROM HERE? Everyone seems to have suggestions as to what to do in the Korean crisis. Several things should be kept in mind however. First of all, Chiang wants to send 30,000 Chinese troops into southern Korea. Our Government has rejected this offer. The reason? We do not want to give justification for the Chinese Communist armies on the Korean border to attack UN forces. If the Chinese Communists move into this war we will be headed pell-mell into world war III. Every effort is being made to keep the Chinese Communists behind their borders and away from the shooting in Korea. Only time will tell what will happen. Surely the President and his advisers are following a cautious policy in an effort to localize this conflict rather than have it take on the dimensions of a catastrophic world war. Some people have asked for an immediate, all-out mobilization. The President and his advisors have proceeded cautiously. An all- out mobilization on our part could be inter- preted by Russia as a signal to get the fire- works under way and attack now in Burope before we are able to strike back. It becomes increasingly clear that this is a most ticklish CONGRESSIONAL RECORD—SENATE and difficult situation. To be sure, we must have sufficient mobilization not only to win in southern Korea but to fulfill our com- mitments in Europe and other parts of the world. Therefore, the President's program calls for voluntary enlistment, particularly of reserves and calling into service part of the National Guard. Selective service will be used to bring the Armed Forces up to the full quota. This would mean an additional 600,- 000 men. Additional manpower will be needed if we are to expand the naval units. America has numerous ships in storage that can be quickly put into action but manpower will be needed. I believe it safe to predict that much of the so-called moth-ball fleet, particularly carriers and cruisers, will be ac- tivated. I feel this should be done. Our supply lines are long. Fleet units are defi- nitely needed. We ought to take every necessary step to have the fleet factlities throughouly prepared and ready for action, Reactivation of surplus reserve military aire craft is underway. The task of statesmanship today is to keep the world from going into an all-out war. We're mighty close to such a situation. Any slip or ill-advised move would precipitate world war III. President Truman and his national de- fense officialdom and the State Department advisers are moving along the following lines: 1. Relying upon General MacArthur and our forces in Japan to handle the North Korean attack. Supplies and manpower from continental United States are being shipped to strengthen MacArthur's position. Key personnel and new equipment is on the way. It appears that things will be worge before they get better. Our problem is not to get caught in Korea by diverting too much manpower and equipment there only to have another outbreak in Iran, Yugoslavia, Fine land, Germany or somewhere else. 2. Military assistance to the North Atlantic pact countries in western Europe will be stepped up. It is safe to predict that Ameri- can forces on the European continent will be strengthened and new equipment made available. Our North Atlantic allies will be asked to accelerate their own defense pro- gram as we pour in new arms and equip- ment. 3. Our Government will call upon Amert- can industry to give priority to munitions and armed services equipment. Plane pro- duction must and will be stepped up. The North Koreans have proven that the tank is still a formidable weapon, Our bazookas and other new antitank guns have not proven too effective. Emphasis will be placed upon production of new weapons, the need of which {ts be‘ng demonstrated in the Korean struggle. 4. It is the general consensus in Wash- ington that we may be subjected to an epi- demic of these international crises along the North Korean pattern. The Soviet Union does not need to use her own national forces. She has her satellites who will carry the burden of the fighting. It appeers that Soviet troops will be used only when Russia is ready to enter in an all-out war. It be- comes obvious that if the United States must take the responsibility for squelching every Communist uprising and attack all over the world, we will seriously weaken ourselves, This hard fact demonstrates the importance of the United Nations and the collective and combined effort of the members of the UN, other than the Soviet bloc, to stand together and to undertake responsibility in their par- ticular areas. We should make it crystal clear that American troops are in Korea as UN forces, If America attempts to police the world on her own, the Soviet can bleed us white while we fight her Communist satellite armies and she continues to develop her own national forces without additional strain on her economy, JULY 19 THE UN--AN INTERNATIONAL FORCE It is tmperative that we as Americans recognize that the UN is our international force and international instrument to mect the conspiracy of international communism. Forty-eight nations are supporting the UN resolution on Korea, These 48 nations rcp- resent a great deal more strength than the Soviet Union and her satellite states. We as a people and as a government must do everything within our power to bring the other 47 nations to an understanding that world peace cannot be maintained by the United States alone. It can and will be maintained by the United Nations acting together. We have demonstrated in Korea that we will do our part, but we ought to make it clear that the struggle against inter- national communism can be successfully made only when the freedom-loving people represented in the United Nations work :s &@ unit, each doing what it best is able to do, each contributing what it is capable, and each undertaking responsibilities according to its strength of manpower, industry, and armed services. I velieve this concept of the UN enforcing world law and world order is the one means that we have of defeating the Communist plot to overwhelm the free and independent nations of the world. FACTORS TO BE WATCHED Neither our economy nor the economies of other nations have had a chance to fully readjust since World War II. We live under the burden of a tremendous war debt, a deficit in our Federal budget, unbelievably high commitments for our armed services, foreign aid, veterans’ pensions and rehabili- tation. We have endured a drastic rise in prices and wages, better known as inflation. Within the past 2 years the inflation cycle seemed to be running itself out and price readjustment was on the way. An epidemic of international incidents and small wars such as we now have in northern Korea would set the inflation spiral to work again. Right now our economic problems are as critical as our military problem, even if not so evi- dent. If prices start to get out of hand, par~ ticularly as they refer to bullding and con- struction costs, steel, oil and fuel, strategic materials and manufactured heavy equip- ment, we will have trouble on our hands, Government economists are watching the economic picture very carefully. It appears that we can meet the Korean crisis without additional taxation or strict economic con- trols. More trouble along the Korean pat- tern would place a severe strain on the economy. We should be prepared to act quickly and decisively. Our whole economy can be seriously injured by run-away prices. No matter how you look at it, we face difficult times for some years to come. We as Americans must recognize the fact that we are not living in a peaceful world. We must prepare ourselves for whatever sac- rifices are necessary to maintain high budg- ets for military purposes, high budgets for foreign aid and high budgets to keep our- selves at a stage of alert preparedness at all times. This is quite a change from our traditional attitude. We enjoy life and love the pleas- ures of good living. It is still a question as to whether we can have all we want of both “putter and guns.” Fortunately, we have an expanding economy. We can absorb in- creased production of military equipment without drastically curtailing consumer goods. We must recognize, however, that we are in a struggle with a police state and a totalitarian economy. Russia and her sat- ellite nations give little or no concern to con- sumer needs. Russia and her allies are cre- ating a powerful force that threatens the peace and security and freedom of the rest of the world. We cannot meet this threat with half-hearted measures nor do we want to be gullty or having “too little too late.” The swiftness of the North Korean attack
1950 should demonstrate to us for once and for all that the merciless aggressor has a tre- mendous advantage. What happened in northern Korea could happen in Europe— yes, could happen to Alaska, POINT 4 It is almost unbelievable but the fact remains that the Senate Committee on Ap- propriations has decided to reduce the point 4 program of technological and scientific aid to underprivileged peoples and under- developed areas from 635,000,000 to 610,- 000,000, This vital program is an integral part of our struggle against communism. We need to clearly understand that com- mursm finds followers in people who have been exploited, who are poor, hungry, and sick, The Communist promises have suc- ceeded in undermining the confidence of these people in their governments, and the institutions of their society. We cannot check communism by arms alone. The United Nations Assembly has recognized this fact and has entered upon a program of technological and scientific assistance to the underdeveloped countries. This is a moderate program and one directed toward Mfting the living standards and health standards of those people. The so-called point 4 appropriation would be used in part in cooperation with the United Nations agencies to send trained, professional people to areas such as Indochina and other lands to help people improve their agricultural de- velopments, their health facilities, expand their educational programs, initiate new in- dustry and other worthy projects. Again, I say it is incredible that the Senate should be considering a drastic reduction in point 4 funds at a time when we need to dem- onstrate to the world that our fight against communism is not only on the military side but also in the areas of social and economic activity. The next news letter will carry a fuller account of the point 4 debate. It is my intention to do everything in my power to have the Senate restore the full amount of funds needed for this program. If you wish for a copy of the full text of my speech on the point 4 program, please drop me a Card or letter. ADJOURNMENT The congressional leadership is making a determined effort to adjourn the Congress by August 1. Needless to say, all plans and schedules are subject to sudden change be- cause of the serious international situation. It is contemplated at this time, however, that the Congress will adjourn August 1 and {f need be reconvene following a short re- cess. This was the plan as annaunced by the majority leader on Monday, July 10. APPROPRIATIONS FOR 1951 All appropriations bill are being debated and voted upon. The 1951 appropriations bill amounts to approximately $34,600,000,- 000. The Senate committee has cut the President's budget by approximately $1,400,- 000,000, in cash and contract authority. There is yet to be considered the program of military assistance which will add approxi- mately $1,800,000,000. Several proposals have been made to cut Government jobs. The Taber-Jensen-Thomes amendments re- quiring 10-percent reduction in Government employment has been rejected by the Senate committee as being unworkable and unde- sirable. This meat-ax approach to reduction of Government employment could seriously in- jure Government services and thereby Gestroy the effectiveness of the appropria- tion made for the agency affected. Here's an example: A 120-percent reduction of the Meat-inspection service would imperil the health-protection program of meat inspec tors at slaughter and packing houses. Each CONGRESSIONAL RECORD—SENATE meat carcass is individually inspected under present policy. A 10-percent employment reduction would mean that 1 out of 3 care casses would be inspected. A 10-percent cut in the Soil Conservation Service would jeopardize soil-conservation programs. It has been my policy that employment reduc. tion should be made not on a percentage basis but on an agency-by-agency and bureau-by-bureau calculation. This can be done by the Appropriations Committee in its recommendations to the Senate for the coming year. It is too early to determine what will happen to the budget for the armed services. The Korean situation may require additional appropriations. Military assistance will take not less than 61,300,000,000. If we are to give military assistance to the Philippines, to Indochina and other southeastern Asiatic areas, we will have to expect greater outlays of money for these programs, The next report will carry a complete re- view of the action of the Senate on appro- priations. Following Senate action there will be a conference committee with the House of Representatives in order to finally determine the expenditures for the next fiscal year. SOCIAL SECURITY The social-security bill, H. R. 6000, fs still 4n conference committee. The difference between House and Senate versions have yet to be ironed out. Certain conclusions, how- ever, cnn be drawn. Detailed changes will be reported in a later news letter. The debate over social-security legislation clearly demonstrates what has transpired in American political life during the past 15 years. When social security was proposed it was assailed as being “socialistic, un- economical, regimentation, and destructive of the character and moral fiber of the peo- ple.” The minority report of the Ways and Means Committee of the House of Repre- sentatives, in 1935, signed by seven members of the committee, had this to say of the social security and insurance program: “These titles impose a crushing burden upon industry and upon labor. They de- stroy old-age retirement systems set up by private industry. “They establish a bureaucracy in the fleld of insurance in competition with private business. “Never in the world has any measure been brought in here so insidiously designed to prevent business recovery, to enslave work- ers, and to prevent any possibility of the employers providing work for the people " These are official statements from the Con- GRESSIONAL Recorp of April 19, 1936, and Con- ference Committee Report 616 of the Sev- enty-fourth Congress. Things do change. The prophets of doom, then as now, had poor vision. In the Eighty- first Congress the House of Representatives passed the social-security-extension bill by 8 vote of 388 to 13. The Senate voted 81 to 2. The bill as it goes to conference will add approximately 11,000,000 more workers to the 35,000,000 now covered. Benefits will be in- creased anywhere from 70 to 90 percent. A married worker can receive as much as @120 a month as compared to $78 under the present law. Retired workers with de- pendents are eligible for benefits of $150, as compared to $85 now. Widows of insured workers will receive increased benefits. The bill as it goes to conference permits workers to earn up to 650 a month without loss of benefit. At present the worker 1s per- mitted to earn only $14.05. The new Dill gives credit for military service on the basis of a wage credit of $160 a month for the time spent in service from 1940 to 1947, Em- ployer and employee contributions are raised from 1% to 2 percent. The House bill would apply the increased tax in 1051, the Senate in 1956. 10625 SALUTE TO CITIES NAMED “WASHINGTON” Mr. MARTIN, Mr. President, in con- nection with Washington’s Sesquicenten- nial, a very important event took place today. There are 16 municipalities in th: United States besides the city of Washington, D. C., having the name of Washington. The chairman of the Sen- ate Committee on the District of Co- lumbia, the very able and eloquent junior Scnator from West Virginia [Mr. Nzz1y], presided at a luncheon held in honor of the representatives of these municipali- ties. The municipalities are located in Georgia, Iowa, Missouri, New Jersey, Wis- consin, Virginia, Utah, Nebraska, Texas, Indiana, and Pennsylvania. Mr. President, the meeting was called to order by the chairman of the recep- tion committee of the National Capital Sesquicentennial Commission, Mr. Edgar Morris. I ask unanimous consent that his statement, which is very short, be printed in the body of the Recorp as a part of my remarks. There being no objection, the state- ment was ordered to be printed in the Recorp, as follows: SALUTE To CITIEs NAMED “WASHINGTON” (By Edgar Morris, chairman, reception com= mittee, National Capital Sesquicentennial Commission) Distinguished guests, ladies, and gentle- men, it is my pleasure, as chairman of the reception committee of the National Capital Sesquicentennial Commission, to welcome you today. These words of welcome are par- ticularly for the mayors of the communities named “Washington” who are present, and their families, because this is the day of our sesquicentenniul celebration which has been designated as the day to salute other Wash- ingtons. It is a great pleasure to add a epe< cial word of welcome to our good friends from the Senate and the House who represent Washingtons in their own States. At least 16 such cities are represented here and I think that is impressive indeed. Today we are paying a unique tribute to the memory of George Washington. I earnestly hope you will absorb all uncon- sciously something of our First President's inner serenity and moral worth during your visit among us. What a wonderful bond of association we enjoy as fellow citizens dwelling in commu- nities blessed with such an Illustrious name. He kept calm as he steered the newly-born Nation in the first years of its destiny. We must follow his example in a changing world of which George Washington may even have dreamed. As he rode across the mud flats of Ana- costia with Maj. Pierre L’Enfant, who had been commissioned to lay out the new Fed- eral city, President Washington envisioned a beautiful city of which his fellow country- men would be forever proud. You and I are enjoying the fruit of that vision today as we meet in the Capitol Buliding for which he laid the cornerstone. When the second session of the Sixth Con- gress convened here on November 17, 1800— the great event our sesquicentennial com- mission is celebrating this year—George Washington had been sleeping in his Mount Vernon tomb for nearly a year. The infant Nation that mourned him then, honors him today. We who are the living embodiments of the communities bearing his name have a great heritage, May we always be worthy of it, Our form of government in the city of Washington, D. C., ta different from that
10626 of any other city. We do not have a mayor in the usually accepted meaning of that term, but we do have an unofficial mayor. He is the chairman of the Senate District of Columbia Committee. The chairman of the House District of Columbia Committee, Hon- orable Joun L. McMILLAN, also plays an im- portant part in the government of the Dis- trict of Columbia. We are proud to have both of these gentlemen with us today, and it is now my privilege to introduce, to pre- side at this luncheon, the chairman of the Senate District of Columbia Committee, Senator Marruew M, NEELy. Mr. MARTIN. Mr. President, I am very sorry that the very eloquent re- marks of the Senator from West Vir- ginia (Mr. Neety] are not available, as he spoke extemporaneously, but he closed the meeting with an appeal to all these municipalities to emulate the work and the duties always performed by the Father of our Country, the man in whose name these various municipali- ties were named. ADJOURNMENT Mr. LUCAS. Mr. President, I move that the Senate adjourn until 12 o’clock noon tomorrow. The motion was agreed to; and (at 6 o’clock and 49 minutes p. m.) the Sen- ate adjourned until tomorrow, Thurs- day, July 20, 1950, at 12 o’clock meridian, CONFIRMATIONS Executive nominations confirmed by the Senate July 19 (legislative day of July 1), 1950: THE Export-Import BANK OF WASHINGTON TO BE MEMBER OF THE BOARD OF DIRECTORS, THE EXPORT-IMPORT BANK OF WASHINGTON, FOR TERM OF 5 YEARS EXPIRING JUNE 20, 1955 Hawthorne Arey, of Nebraska. Herbert E. Gaston, of New York. Clarence E. Gauss, of Connecticut. Lynn U. Stambaugh, of North Dakota, Unitep Starrs Court of APPEALS Hon, William Henry Hastie, of the Virgin Islands, to be judge of the United States Court of Appeals for the Third Circuit. UNITED STATES ATIORNEYS Thomas A. Uzzell, Jr., to be United States attorney for the western district of North Carolina. Ray J. O'Donnell, to be United States at- torney for the southern district of Ohio. WITHDRAWAL Executive nomination withdrawn from the Senate July 19 (legislative day of July 1), 1950: POSTMASTER LuElla M. Thompson, Darwin, Calif. HOUSE OF REPRESENTATIVES WEeEbDNESDAY, JuLy 19, 1950 The House met at 12 o'clock noon. The Chaplain, Rev. Bernard Bras- kamp, D. D., offered the following prayer: O Thou who wert the God of our fathers, in every generation Thou hast revealed Thyself as man’s unfailing friend, his ever-present help and ever- lasting hope. Grant that in these days, when the whole world is groping in darkness, we CONGRESSIONAL RECORD—HOUSE may validate this revelation by a calm and courageous faith in the guiding in- telligence and invincible power of the Lord, our God. May this be a day of unclouded vision for our President, for our Speaker, and all the chosen representatives of our Re- public as they take counsel together and courageously seek to emancipate suffer- ing and struggling humanity from the evil forces of aggression and aggrandize- ment. Humbly and penitently we are invok- ing Thy blessing for we know that all our plans and efforts for the triumph of peace and righteousness will be futile and fruitless unless Thou dost gird us with divine wisdom and strength. Hear us in the name‘of the Prince of Peace. Amen. The Journal of the proceedings of yes- terday was read and approved. MESSAGE FROM THE PRESIDENT A message in writing from the Presi- dent of the United States was communi- cated to the House by Mr. Hawks, one of his secretaries, who also informed the House that on the following dates the President approved and signed bills of the House of the following titles: On July 3, 1950: H.R. 5019. An: act for the relief of Fella H. Holbrook. On July 6, 1950: H.R. 1606. An act conferring jurisdiction upon the Court of Claims to hear and deter- mine the claim of Auf der Heide-Aragona, Inc., and certain of its subcontractors against the United States; and H.R. 4295. An act to provide certain bene- fits for anniuitants who retired under the Civil Service Retirement Act of May 29, 1930, prior to April 1, 1948. On July 10, 1950: H R. 1437. An act to authorize the com- position of the Army of the United States and the Air Force of the United States, and for other purposes. On July 11, 1950: H.R. 5368. An act to authorize the Depart- ments of the Army, Navy, and Air Force to participate in the transfer of certain real property or interests therein, and for other purposes. On July 12, 1950: H.R. 1169. An act for the relief of Mra. Marion T. Schwartz; and H.R. 4894. An act to amend sections 10, 11, and 12 of chapter V of the act of June 19, 1934, as amended, entitled “An act to regulate the business of life ineurance in the District of Columbia.” On July 18, 1950: H.R. 8568. An act making appropriations for the government of the District of Colum- bia and other activities chargeable in whole or in part against the revenues of such Dis- trict for the fiscal year ending June 30, 2951, and for other purposes. THE KOREAN SITUATION—-MESSAGE FROM THE PRESIDENT OF THE UNITED STATES (H. DOC. NO. 646) The SPEAKER laid before the House the following message from the President of the United States, which was read, referred to the Committee of the Whole House on the State of the Union, and ordered to be printed: To the Congress of the United States: I am reporting to the Congress on the situation which has been created in Korea, and on the actions which this JULY 19 Nation has taken, as @ member of the United Nations, to meet this situation. I am also laying before the Congress my views concerning the significance of these events for this Na‘ion and the world, and certain recommendations for legislative action which I believe should be taken at this time. At 4 o’clock in the morning, Sunday, Jun: 25, Korean time, armed forces from north of the thirty-eighth parallel invaded the Republic of Korea. The Republic of Korea was established as an independent nation in August 1948, after a free election held under the auspices of the United Nations. This election, which was originally invended to cover all of Korea, was held only in the part of the Korean peninsula south of the thirty-eighth parallel, because the Soviet Government, which occupied the peninsula north of that parallel, refused to allow the election to be held in the area under its control, The United States, and a majority of the other members of the United Nations, have revognized the Republic of Korea. The admission of Korea to the United Nations has been blocked by the Soviet veto. In December 1948, the Soviet Govern- ment stated that it had withdrawn its occupation troops from northern Korea, and that a local regime had been estab- lishec there, The authorities in orthern Korea continued to refuse tu permit United Nations observers to pass the thirty-eighth parallel to supervise or ob- serve a free election, or to verify the withdrawal of Soviet troops, Nevertheless, the United Nations con- tinued its efforts to obtain a freely elect- ed government for all of Korea, and at the time of the attack, a United Nations Commission, made up of representatives of seven nations—Australia, China, El Salvador, France, India, the Philippines, and Turkey—was in the Republic of Korea. Just one day before the attack of June 25, field observers attached to the United Nations Commission on Korea had completed a routine tour, lasting 2 weeks, of the military positions of the Republic of Korea south of the thirty- eighth paral.el. The report of these in- ternational observers stated that the Army of the Republic of Korea was or- ganized entirely for defense. The ob- servers found the parallel guarded on the south side by small bodies of troops in scattered outposts, with roving patrols. They found no concentration of troops and no preparation to attack, The observers concluded that the absence of armor, air support, heavy artillery, and military supplies precluded any offensive action by the forces of the Republic of Korea. On June 25, within a few hours after the invasion was launched from the north, the Commission reported to the United Nations that the attack had come pithout warning and without provoca- on. The reports from the Commission make it unmistakably clear that the at- tack was naked, deliberate, unprovoked aggression, without o shadow of justifi- cation,
1950 This outright breach of the peace, in violation of the United Nations Charter, created a real and present danger to the security of every nation. This attack was, in addition, a demonstration of con. tempt for the United Nations, since it was an attempt to settle, by military ag- gression, a question which the United Nations had been working to settle by peaceful means. The attack on the Republic of Korea, therefore, was a clear challenge to the basic principles of the United Nations Charter and to the specific actions taken by the United Nations in Korea, If this challenge had not been met squarely, the effectiveness of the United Nations would have been all but ended, and the hope of mankind that the United Na- tions would develop into an institution of world order would have been shat- tered. Prompt action was imperative. The Security Council of the United Nations met, at the request of the United States, in New York at 2 o'clock in the after- noon, Sunday, June 25, eastern daylight time. Since there is a 14-hour differ- ence ir. time between Korea and New York, this meant that the Council con- vened just 24 hours after the attack began. At this meeting, the Security Council passed a resolution which called for the immediate cessation of hostilities and for the withdrawal of the invading troops to the thirty-eighth parallel, and which requested the members of the United Nations to refrain from giving aid to the northern aggressors and to as- sist in the execution of this resolution. The representative of the Soviet Union to the Security Council stayed away from the meeting, and the Soviet Gov- ernment has refused to support the Council’s resolution. The attack launched on June 25 moved ahead rapidly. The tactical surprise gained by the aggressors, and their su- periority in planes, tanks, and artillery, forced the lightly-armed defenders to retreat. The speed, the scale, and the coordination of the attack left no doubt that it had been plotted Jong in advance. When the attack came, our Ambassa- dor to Korea, John J. Muccio, began the immediate evacuation of American women and children from the danger zone, To protect this evacuation, air cover and sea cover were provided by the Commander in Chief of United States forces in the Far East, General of the Army Douglas MacArthur. In response to urgent appeals from the Government of Korea, General MacArthur was im- mediately authorized to send supplies of ammunition to the Korean defenders. These supplies were sent by air trans- port, with fighter protection. The United States Seventh Fleet was ordered north from the Philippines, so that it might be available in the area in case of need. Throughout Monday, June 26, the in- vaders continued their attack with no heed to the resolution of the Security Council of the United Nations. Accord- ingly, in order to support the resolution, and on the unanimous advice of our civil and military authorities, I ordered United States air and sea forces to give the CONGRESSIONAL RECORD—HOUSE Korean Government troops cover and support. On Tuesday, June 27, when the United Nations Commission in Korea had re- ported that the northern troops had neither ceased hostilities nor withdrawn to the thirty-eighth parallel, the United Nations Security Council met again and passed a second resolution recommend- ing that members of the United Nations furnish to the Republic of Korea such aid as might be necessary to repel the attack and to restore international peace and security inthe area. The represent- ative of the Soviet Union to the Security Council stayed away from this meeting also, and the Soviet Government has refused to support the Council's resolu- tion. The vigorous and unhesitating actions of the United Nations and the United States in the face of this aggression met with an immediate and overwhelming re- sponse throughout the free world. The first blow of aggression had brought dis- may and anxiety to the hearts of men the world over. The fateful events of the 1930’s, when aggression unopposed bred more aggression and eventually war, were fresh in our memory. But the free nations had learned the lesson of history. Their determined and united actions uplifted the spirit of free- men everywhere. As a result, where there had been dismay there is hope; where there had been anxiety there is firm determination. Fifty-two of the fifty-nine member na- tions have supported the United Nations action to restore peace in Korea. A number of member nations have of- fered military support or other types of assistance for the United Nations action to repel the aggressors in Korea. In a third resolution, passed on July 7, the Security Council requested the United States to designate a commander for all the forces of the members of the United Nations in the Korean operation, and authorized these forces to fly the United Nations flag. In response to this reso- lution, General MacArthur has been des- ignated as commander of these forces. These are important steps forward in the development of a United Nations system of collective security. Already, aircraft of two nations—Australia and Great Britain—and neval vessels of five na- tions—Australia, Canada, Great Britain, the Netherlands, and New Zealand—have been made available for operations in the Korean area, along with forces of Korea and the United States, under General MacArthur's command. The other offers of assistance that have been, and will continue to be made, will be coordinated by the United Nations and by the uni- fied command, in order to support the effort in Korea, to maximum advantage. All the members of the United Nations who have endorsed the action of the Security Council realize the significance of the step that has been taken. This united and resolute action to put down lawless aggression is a milestone toward the establishment of a rule of law among nations, Only a few countries have failed to support the common action to restore the peace. The most important of these is the Soviet Union. 10627 Since the Soviet representative had refused to participate in the meetings of the Security Counci]) which took action regarding Korea, the United States brought the matter directly to the at- tention of the Soviet Government in Moscow. On June 27, we requested the Soviet Government, in view of its known close relations with the North Korean regime, to use its influence to have the invaders withdraw at once. The Soviet Government, in its reply on June 29 and in subsequent statements, has taken the position that the attack launched by the North Korean forces was provoked by the Republic of Korea and that the actions of the United Na- tions Security Council were illegal. These Soviet claims are flatly dis- proved by the facts. The attitude of the Soviet Government toward the aggression against the Re- public of Korea is in direct contradic- tion to its often-expressed intention to work with other nations to achieve peace in the world. For our part we shall continue to sup- port the United Nations action to restore peace in the Korean area. As the situation has developed I have authorized a number of measures to be taken. Within the first week of the fighting General MacArthur reported, after a visit to the front, that the forces from North Korea were continuing to drive south and further support of the Republic of Korea was needed. Accord-~ ingly, General MacArthur was author- ized to use United States Army troops in Korea and to use United States aircraft of the Air Force and the Navy to conduct missions against specific military tar- gets in Korea north of the thirty-eighth parallel where necessary to carry out the United Nations resolution. General MacArthur was also directed to blockade the Korean coast. The attacking forces from the north have continued to move forward, al- though their advance has been slowed down. The troops of the Republic of Korea, though initially overwhelmed by the tanks and artillery of the surprise attack by the invaders, have been reor- ganized and are fighting bravely. United States forces, as they have arrived in the area, have fought with great valor, The Army troops have been conducting a very difficult delay-~ ing operation with skill and determina- tion, outnumbered many times over by attacking troops, spearheaded by tanks. Despite the bad weather of the rainy season, our troops have been valiantly supported by the air and naval forces of both the United States and other members of the United Nations. In this connection, I think it is im- portant that the nature of our military action in Korea be understood. It should be made perfectly clear that the action was undertaken as a matter of basic moral principle. The United States was going to the aid of a nation established and supported by the United Nations and unjustifiably attacked by an aggressor force. Consequently, we were not deterred by the relative imme- diate superiority of the attacking forces, by the fact that our base of supplies was 5.000 miles away, or by the further
10628 fact that we would have to supply ovr forces through port facilities that are far from satisfactory. We are moving as rapidly as possible to bring to bear on the fighting front larger forces and heavier equipment, and to increase our naval and air superiority. But it will take time, men, and material to slow down the forces of aggression, bring those forces to a halt, and throw them back. Nevertheless, our assistance to the Re- public of Korea has prevented the in- vaders from crushing that nation in a few days—as they had evidently expect- ed to do. We are determined to sup- port the United Nations in its effort to restore peace and security to Korea, and its effort tc assure the people of Korea an opportunity to choose their own form of government free from coercion as expressed in the General Assembly reso- lutions of November 14, 1947, and De- ceraber 12, 1948. In addition to the direct military ef- fort we and other members of the United Nations are making in Korea, the out- break of aggression there requires us to consider its implications for peace throughout the world. The attack upon the Republic of Korea makes it plain beyond all doubt that the international Communist movement is prepared to use armed invasion to conquer independent nations. We must therefore recognize the possibility that armed aggression may take place in other areas. In view of this, I have already directed that United States forces in support of the Philippines be strengthened, and that military assistance be speeded up to the Philippine Government and to the Associated States of Indochina and to the forces of France in Indochina. I have also ordered the United States Seventh Fleet to prevent any attack upon Formosa, and I have requested the Chinese Government on Formosa to cease all air and sea operations against the mainland. These steps were at once reported to the United Nations Security Council. Our action in regard to Formosa was ® matter of elementary security. The peace and stability of the Pacific area had been violently disturbed by the at- tack on Korea. Attacks elsewhere in the Pacific area would have enlarged the Korean crisis, thereby rendering much more difficult the carrying out of our obligations to the United Nations in Korea. In order that there may be no doubt in any quarter about our intentions re- garding Formosa, I wish to state that the United States has no territorial ambi- tions whatever concerning that island, nor do we seek for ourselves any special position or privilege on Formosa. The present military neutralization of For- mosa is without prejudice to political questions affecting that island. Our de- sire is that Formosa not become em- broiled in hostilities disturbing to the peace of the Pacific and that all ques- tions affecting Formosa be settled by peaceful means as envisaged in the Charter of the United Nations. With peace reestablished, even the most com- plex political questions are susceptible of solution. In the presence of brutal and CONGRESSIONAL RECORD—HOUSE unprovoked aggression, however, some of these questions may have to be held in abeyance in the interest cf the essen- tial security of all. The outbreak of aggression in the Far East does not, of course, lessen, but in- stead increases, the importance of the common strength of the free nations in other parts of the world. The attack on the Republic of Korea gives added urgency to the efforts of the free na- tions to increase and to unify their com- mon strength, in order to deter a poten- tial aggressor. To be able to accomplish this objec- tive, the free nations must maintain a sufficient defensive military strength .in being, and, even more important, a solid basis of economic strength, capable of rapid mobilization in the event of emergency. The strong cooperative efforts that have been made by the United States and other free nations, since the end of World War II, to restore economic vital- ity to Europe and other parts of the world, and the cooperative efforts we have begun in order to increase the pro- ductive capacity of underdeveloped areas, are extremely important contribu- tions to the growing economic strength of all the free nations, and will be of even greater importance in the future. We have been increasing our common defensive strength under the treaty of Rio de Janeiro and the North Atlantic Treaty, which are collective security arrangements within the framework of the United Nations Charter. We have also taken action io bolster the military defenses of individual free nations, such as Greece, Turkey, and Iran. The defenses of the North Atlantic Treaty area were considered a matter of great urgency vy the North Atlantic Council in London this spring. Recent events make it even more urgent than it was at that time to build and maintain these defenses. Under all the circumstances, it is ap- parent that the United States is required to increase its military strength and pre- paredness not only to deal with the aggression in Korea but also to increase our common defense, wito other free nations, against further aggression. The increased strength which is need- ed falls into three categories. In the first place, to meet the situation in Korea, we shall need to send addi- tional men, equipment, and supplies to General MacArthur’s command as rap- idly as possible. In the second place, the world situa- tion requires that we increase substan- tially the size and matériel support of our Armed Forces, over and above the increases which are needed in Korea. In the third place, we must assist the free nations associated with us in com- mon defense to augment their military strength. Of the three categories I have just enumerated, the first two involve in- creases in our own military manpower, and in the matériel support that our men must have, To meet the increased requirements for military manpower, I have author- ized the Secretary of Defense to exceed the budgeted strength of military per- JULY 19 sonnel for the Army, Navy, and Air Force, and tu use the Selective Service System to such extent as may be re- quired in order to obtain the increased strength which we must have. I have also authorized the Secretary of Defense to meet the need for military manpower by calling into active Fedcral service as many National Guard units and as many units and individuals of the Reserve forces of the Army, Navy, and Air Forces as may be required. I have directed the Secretary of De- fense and the Joint Chiefs of Staff to keep our military manpower needs un- der constant study, in order that fur- ther increases may be made as required. There are now statutory limits on the sizes of the Armed Forces, and since we may need to exceed these limits, I recom- mend that they be removed. To increase the level of our military strength will also require additional sup- plies and equipment. Procurement of many items has already been accelerated, in some cases for use in Korea, in others to replace reserve stocks which are now being sent to Korea, and in still others to add to our general level of preparedness. Further increases in procurement, re- sulting in a higher rate of production of military equipment and supplies, will be necessary. The increases in the size of the Armed Forces, and the additional supplies and equipment which will be needed, will re- quire additional appropriations. Within the next few days, I will transmit to the Congress specific requests for appropria- tions in the amount of approximately $10,000,000,000. These requests for appropriations will be addressed to the needs of our own mil- itary forces. Earlier, I referred to the fact that we must also assist other free nations in the strengthening of our com- mon defenses. The action we must take to accomplish this is just as important as the measures required to strengthen our own forces. The authorization bill for the mutual defense assistance program for 1951, now before the House of Representatives, is an important immediate step toward the strengthening of our collective security. It should be enacted without delay. But it is now clear that the free nations of the world must step up their common- security program. The other nations as- sociated with us in the mutual defense assistance program, like ourselves, will need to divert additional economic re- sources to defense purposes, In order to enable the nations associated with us to make their maximum contribution to our common defense further assistance on our part will be required. Additional assistance may also be needed to increase the strength of certain other free na- tions whose security is vital to our own. In the case of the North Atlantic area these requirements will reflect the con- sultations now going on with the other nations associated with us in the North Atlantic Treaty. As soon as it is pos- sible to determine what each nation will need to do, I shall lay before the Congress @ request for such funds as are shown to be necessary to the attainment and main- tenance of our common strength at an adequate level.
.1950 The steps which we must take to sup- port the United Nations action in Korea, and to increase our own strength and the common defense of the free world, will necessarily have repercussions upon our domestic economy. Many of our young men are in battle now, or soon will be. Others must be trained. The equipment and supplies they need, and those required for ade- quate emergency reserves, must be pro- duced. They must be made available promptly, at reasonable cost, and with- out disrupting the efficient functioning of the economy. We must continue to recognize that our strength is not to be measured in military terms alone. Our power to join in a common defense of peace rests fundamentally on the productive capac- ity and energies of our people. In all that we do, therefore, we must make sure that the economic strength which is at the base of our security is not im- paired, but continues to grow. Our economy has tremendous produc- tive power. Our total output of goods and services is now running at an annual rate of nearly 270 billion dollars—over 100 billion dollars higher than in 1939. The rate is now about 13 billion dollars higher than a year ago, and about 8 billion dollars higher than the previous record rate reached in 1948. All the foregoing figures have been adjusted for price changes, and are therefore a meas- ure of actual output. The index of in- dustrial production, now at 197, is 12 percent higher than the average for last year, and 81 percent higher than in 1939, We now have 6114 million people in civilian employment. There are 16 mil- lion more people in productive jobs than there were in 1939. We are now pro- ducing 11 million more tons of steel a year than in the peak war year 1944. Electric power output has risen from 128 billion kilowatt-hours in 1939, to 228 billion hours in 1944, to 317 billion hours now. Food production is about a third higher than it ever was before the war, and is practically as high as it was dur- ‘ing the war years, when we were send- ing far more focd abroad than we are now. The potential productive power of our economy is even greater. Wecan achieve some immediate increase in production by employing men and facilities not now fully utilized. And we can continue to increase our total annual output each year by putting to use the increasing skills of our growing population and the higher productive capacity which results from plant expansion, new inventions, fae more efficient methods of produc- on, With this enormous economic strength, the new and necessary programs I am now recommending can be undertaken with confidence in the ability of our economy to bear the strains involved. Nevertheless, the magnitude of the de- mands for military purposes that are now foreseeable, in an economy which is already operating at a very high level, will require substantial redirection of economic resources. Under the program for increasing mili- tary strength which I have outlined ebove, military and related procurement CONGRESSIONAL RECORD—HOUSE will need to be expanded at a more rapid rate than total production can be ex- panded. Some materials were in short supply even before the Korean situation developed. ‘The steel industry, for ex- ample, was operating at capacity levels, and even so was not able to satisfy all market demands. Some other construc- tion materials, and certain other prod- ucts, were also under pressure and their prices were rising—even before the out- break in Korea. The substantial speed-up of military procurement will intensify these short- ages. Action must be taken to insure that these shortages do not interfere with or delay the materials and the sup- plies needed for the national defense. Further, the dollars spent now for mil- itary purposes will have a magnified effect upon the economy as a whole, since they will be added to the high level of current civilian demand. These in- creased pressures, if neglected, could drive us into a general inflationary sit- uation. The best evidence of this is the recent price advances in many raw ma- terials and in the cost of living, even vpon the mere expectancy of increased military outlays. In these circumstances, we must take action to insure that the increased na- tional defense needs will be met, and that in the process we do not bring on an in- flation, with its resulting hardship for every family. At the same time, we must recognize that it will be necessary for a number of years to support continuing defense ex- penditures, including assistance to other nations, at a higher level than we had previously planned. Therefore, the eco- nomic measures we take now must be planned and used in such a manner as to develop and maintain our economic strength for the long run as well as the short run, I am recommending certain legisla- tive measures to help achieve these ob- jectives. I believe that each of them should be promptly enacted. We must be sure to take the steps that are neces- sary now, or we shall surely be required to take much more drastic steps later on. First, we should adopt such direct measures as are now necessary to assure prompt and adequate supplies of goods for military and essential civilian use, I therefore recommend that the Con- gress now enact legislation authorizing the Government to establish priorities and allocate materials as necessary to promote the national security; to limit the use of materials for nonessential purposes; to prevent inventory hoard- ing; and to requisition supplies and ma- terials needed for the nationa] defense, particularly excessive and unnecessary inventories. Second, we must promptly adopt some general measures to compensate for the growth of demand caused by the expan- sion of military programs in a period of high civilian incomes. I am directing all executive agencies to conduct a detailed review of Government programs, for the purpose of modifying them wherever practicable to lessen the demand upon e.rvices, commodities, raw materials, manpower, and facilities which are in competition with those needed for na- 10629 tional defense. The Government, as well as the public, must exercise great restraint in the use of those goods and services which are needed for our in- ereased defense efforts. Nevertheless, the increased appropria- tions for the Department of Defense, plus the defense-related appropriations which I have recently submitted for power development and atomic energy, and others which will be necessary for such purposes as stockpiling, will mean sharply increased Federal expenditures, For this reason, we should increase Fed- eral revenues more sharply than I have previously recommended, in order to re- duce the inflationary effect of the Gov- ernment deficit. There are two fundamental principles which must guide us in framing measures to obtain these additional revenues: (A) We must make every effort to finance the greatest possible amount of needed expenditures by taxation. The increase of taxes is our basic weapon in offsetting the inflationary pressures exerted by enlarged Government expend- itures. Heavier taxes will make general controls less necessary. (B) We must provide for a balanced system of taxation which makes a fair distribution of the tax burden among the different groups of individuals and busi- ness concerns in the Nation. A balanced tax program should also have as a major aim the elimination of profiteering. At an appropriate time, as soon as the necessary studies are completed, I shall present to the Congress a program based on these principles to assure the financ- ing of our needs in a manner which will be fair to all our citizens, which will help prevent inflation, and which will main- tain the fiscal position of the Nation in the soundest possible condition. As a further important safeguard against inflation, we shall need to re- strain credit expansion. I recommend that the Congress now authorize the con- trol of consumer credit and credit used for commodity speculation. In the hous- ing field, where Government credit is an important factor, I have directed that certain available credit restraints be ap- plied, and I recommend that further con- trols be authorized, particularly to re- strain expansion of privately financed real estate credit. These actions will not only reduce the upward pressure on prices, but will also reduce the demand for certain critical materials which are required for the production of military equipment. Third, we must take steps to accelerate and increase the production of essential materials, products, and services. I rece ommend, therefore, that the Congress authorize, for nations! defense purposes, production loan guaranties and loans to increase production. I also recommend that the Congress authorize the making of long-term contracts and other means to encourage the production of certain materials in short supply. In the forthcoming midyear economic report, I shall discuss in greater detail the current economic situation, and the economic measures which I have recom- mendci. If these measures are made
10630 available promptly, and firmly adminis~ tered, I believe we will be able to meet military needs without serious disruption of the economy. If we are to be successful, there must be sensible and restrained action by busi- nessmen, labor, farmers, and consumers. The people of this country know the seriousness of inflation, and will, I am sure, do everything they can to see that it does not come upon us. However, if a sharp rise in prices should make it neces- sary, I shall not hesitate to recommend the more drastic measures of price con- trol and rationing. The hard facts of the present situation require relentless determination and firm action. The course of the fighting thus far in Korea shows that we can expect no easy solution to the conflict there. We are confronted in Korea with well-sup- plied, well-led forces which have been jong trained for aggressive action. We and the other members of the United Nations who have joined in the effort to restore peace in Korea must expect a hard and costly military op2ration. We must also prepare ourselves better to fulfill our responsibilities toward the preservation of international peace and security against possible further aggres- sion. In this effort, we will not flinch in the face of danger or difficulty, The free world has made it clear, through the United Nations, that lawless ageression will be met with force. This is the significance of Korea—and it is a significance whose importance cannot be overestimated. I shall not attempt to predict the course of events. But I am sure that those who have it in their power to un- leash or withhold acts of armed aggres- sion must realize that new recourse to aggression in the world today might well strain to the breaking point the fabric of world peace, The United States can be proud of the part it has played in the United Nations action in this crisis. We can be proud of the unhesitating support of the American peopie for the resolute actions taken to halt the aggression in Korea and to sup- port the cause of world peace. The Congress of the United States, by its strong, bipartisan support of the steps we are taking and by repeated actions in support of international cooperation, has contributed most vitally to the cause of peace. The expressions of support which have been forthcoming from the leaders of both political parties for the actions of our Government and of the United Na- tions in dealing with the present crisis, have buttressed the firm morale of the entire free world in the face of this chal- lenge. The American people, together with other free peoples, scek a new era in world affairs. We seek a world where all men may live in peace and freedom, with steadily improving living conditions, un- der governments of their own free choice. For ourselves, we seek no territory or domination over others. We are deter- mined to maintain our democratic insti- tutions so that Americans now and in the future can enjoy personal liberty, eco~ nomic opportunity, and political equal- ity. We are concerned with advancing CONGRESSIONAL RECORD—HOUSE our prosperity and our well-being as a Nation, but we know that our future is inseparably joined with the future of other free peoples. We will follow the course we have chosen with courage and with faith, be- cause we carry in our hearts the flame of freedom. We are fighting for liberty and for peace—and with God’s blessing we shall succeed, Harry S, TRUMAN, Tue Wuire House, July 19, 1950. IRVING W. SWANSON Mr. MARTIN of Massachusetts. Mr. Speaker, I send to the desk a resolution (H. Res. 713) and ask for its immediate adoption. The Clerk read as follows: Resolved, That pursuant to the Legislative Pay Act of 1929, as amended, Irving W. Swan- son is hereby designated a minority em- ployee (to fill an existing vacancy) until otherwise ordered by the House, and receive compensation at the basic rate of $7,000 per annum. The resolution was agreed to. A motion to reconsider ‘’as laid on the table. AMENDMENT OF SECTION 120 OF THE INTERNAL REVENUE CODE Mr. REED of New York. Mr. Speaker, I ask unanimous consent for the im- mediate consideration of the bill (H. R. 7303) to amend section 120 of the In- ternal Revenue Code. The Clerk read the title of the bill. Mr. RICH. Mr. Speaker, reserving the right to object, what does the bill do? Mr. REED of New York. Mr. Speaker, section 120 of the Internal Revenue Code permits an unlimited deduction for char- itable contributions in the case of an in- dividual whose charitable contributions in the current taxable year and in each of the 10 preceding ycars, plus his in- come taxes paid during the year with respect to preceding years exceeded 90 percent of his net income. The Current Tax Payment Act enacted in 1943 provided however that payments of income tax made during that year should be deemed to be on account of 1943 income tax and it therefore had the unintended effect of nullifying that part of section 120 which includes taxes paid during the year on account of preceding years as a factor in arriving at the figure which should constitute 90 percent of the net income. ° This has been recognized as an over- sight by Congress and accordingly H. R. 7303 merely provides that taxes paid not only with respect to the past year but also those paid for the current year may be used as a factor in arriving at the 90- percent figure for purposes of section 120. Thus, for example, if during the calendar year 1950 a taxpayer makes charitable gifts amounting to 20 per- cent of his net income and his payments of current taxes amount to 50 percent and payments of taxes for prior years amount to 25 percent, the 90 percent re- quirement of section 120 would be satis- fied for such year. In order to make the desired coordina- tion of section 120 with the Current Tax Payment Act of 1943 the amendment JULY 19 contained in H. R. 7303 is retroactive to taxable years beginning after December $1, 1942, The present situation works a great injustice to the very few taxpayers in the country who have fully complied with the requirements of section 120 for 10 successive years prior to 1943, and then found that the tax benefit which had ap- parently been assured to them was taken away from them through their not being allowed in the eleventh year—1943—to include in the 90-percent limitation any taxes paid in 1943, since all of the taxes which they had paid in 1943 were treated as not payments on account of prior years taxes but of 1943 taxes. The SPEAKER. Is there objection to the present consideration of the bill? There being no objection, the Clerk read the bill, as follows: Be it enacted, etc., That section 120 of the Internal Revenue Code (relating to unlim- ited deduction for charitable and other con- tributions) is hereby amended by striking out “in respect of preceding taxable years” and inserting in Meu thereof “in respect of such year or preceding taxable years.” Src. 2, The amendment made by this act shall be applicable to taxable years beginning after December 81, 1942. The bill was ordered to be engrossed and read a third time, was read the third time, and passed, and a motion to recon- sider was laid on the table. MUTUAL DEFENSE ASSISTANCE ACT OF 1949 Mr. KEE. Mr. Speaker, I move that the House resolve itself into the Commit- tee of the Whole House on the State of the Union for the further consideration of the bill (S. 3809) to amend the Mutual Defense Assistance Act of 1949, The motion was agreed to. Accordingly the House resolved itself into the Committee of the Whole House on the State of the Union for the further consideration of the bill (8. 3809) to amend the Mutual Defense Assistance Act of 1949, with Mr. MiLus in the chair. The Clerk read the title of the bill. The CHAIRMAN. Time for general debate on the bill expired on yesterday. The Clerk will now read the bill for amendment. The Clerk read as follows: Be it enacted, etc., That section 101 of the Mutual Defense Assistance Act of 1949 is hereby amended to read as follows: “Src. 101. In view of the coming into force of the North Atlantic Treaty and the estab- lishment thereunder of the Council and the Defense Committee which will recommend measures for the common defense of the North Atlantic area, and in view of the fact that the task of the Council and the Defense Committee can be facilitated by Immediate steps to increase the integrated defensive armed strength of the parties to the treaty, the President is hereby authorized to furnish military assistance in the form of equip- ment, materials, and services to such nations as are parties to the treaty and request such assistance. Any such assistance furnished under this title shall be subject to agree- ments, further referred to in section 402, de- signed to assure that the assistance will be used to promote an integrated defense of the North Atlantic area and to facilitate the de- velopment of defense plans by the Council and the Defense Committce under article 9 of the North Atlantic Treaty and to realize unifled
1950 direction and effort; and after the agreement by the Government of the United States with defense plans as recommended by the Council and the Defense Committee, military assiat- ance hereunder shall be furnished only in accordance therewith.” 8c. 2. Section 102 of such act is hereby amended by designating such section as sub- section (a) and by adding thereto subsection (b) to read as follows: “(b) In addition to the amounts hereto- fore authorized to be appropriated, there are hereby authorized to be appropriated to the President for the year ending June 30, 1961, out of any money in the Treasury not other- wise appropriated, for carrying out the pro- visions and accomplishing the policies and purposes of this title, not to exceed $1,000,000,000." Sxc. 8. Section 104 of such act is hereby amended to read as follows: “SEc. 104. None of the funds made available for carrying out the provisions of this act or the act of May 22, 1947, as amended, shall be utilized (a) to construct or aid in the construction of any factory or other manu- facturing establishment outside of the United States or to provide equipment (other than production equipment, including ma- chine tools) for any such factory or other manufacturing establishment, (b) to defray the cost cf maintaining any such factory or other manufacturing establishment, (c) dil- rectly or indirectly to compensate any na- tion or any governmental agency or person therein for any diminution in the export trade of such nation resulting from the car- rying out of any program of increased mili- tary production or to make any payment, in the form of a bonus, subsidy, indemnity, guaranty, or otherwise, to any owner of any such factory or other manufacturing estab- lishment ag an inducement to such owner to undertake or increase production of arms, ammunition, tmplements of war, or other military supplies, or (d) for the compensa- tion of any person for personal services ren- dered in or for any such factory or other manufacturing establishment, other than personal services of a technical nature ren- dered by officers and employees of the United Btates for the purpose of establishing or maintaining production by such factories or other manufacturing establishments to ef- fectuate the purposes of this act and in cone formity with desired standards and specifi- cations.” Sec. 4. Title IZ is hereby amended by changing its designation to read as follows: “Greece, TURKEY, AND IRAN” Bsc. 6. Section 201 of such act is hereby amended by designating such section as sub- section (a) and by adding thereto subsection (b) to read as follows: “(b) In addition to the amounts heretofore authorized to be appropriated, there are hereby authorized to be appropriated, out of any moneys in the Treasury not otherwise appropriated, not to exceed 8131,500,000 to carry out the provisions of the act of May 23, 19¢7, as amended, and for the purpose of fur- nishing military assistance to Iran as pro- vided in this act, for the year ending June 380, 1951. Whenever the furnishing of such as- sistance will further the purposes and poli- cies of this act, the President is authorized to furnish military assistance as provided in this act to Iran.” Sec. 6. Section 301 of such act is hereby amended by striking out the word “Iran” and the comma which follows tt, Src. 7, Section 802 of such act is hereby amended by designating such section as sub- section (a) and by adding thereto subsection (b) as follows: “(b) In addition to the amounts heretofore authorized to be appropriated, there are hereby authorized to be appropriated to the President for the year ending June 30, 1951, out of any moneys in the Treasury not oth- CONGRESSIONAL RECORD—HOUSE erwise appropriated, fer carrying out the provisions and accomplishing the purposes of section 301, as amended, not to exceed $16,- 000,000.” Sec. 8. Bection 803 of such act is hereby amended by designating such section as sub- section (a) and by adding thereto subsection (b) to read as follows: “(b) In addition to the amcunts heretofore authorized to be appropriated, there are hereby authorized to be appropriated to the President, out of any moneys in the Treasury not otherwise appropriated, the sum of 875,- 000,000, to be used as provided in subsection (a) of this section, of which not more than $35,000,000 may be accounted for as therein provided and any amount accounted for in such manner shall, with the exception of $7,500,000, be reported to the Committee on Foreign Relations of the Senate, the Com- mittees on Armed Services of the Senate and of the House of Representatives, and the Committee on Foreign Affairs of the House of Representatives.” Src. 9. Section 408 (d) of such act is here- by amended to read as follows: “Bec. 403. * * *, “(a) Not to exceed €450,000,000 worth of excess equipment and materials may be fur- nished under this act or may hereafter be furnished under the act of May 22, 1947, as amended: Provided, That during the fiscal year ending June 30, 1951, an additional €@250,000,000 worth of excess equipment and materials may be so furnished. For the pur- poses of this subsection, the worth of any excess equipment or materials means either the actual gross cost to the United States of that particular equipment or materials or the estimated gross cost to the United States of that particular equipment or materials obtained by multiplying the number of units of such particular equipment or ma- terials by the average gross cost of each unit of that equipment or materials owned by the furnishing agency.” Sec. 10. Section 403 is hereby amended by adding a new subsection (€) to read as follows: “(e) Funds heretofore appropriated and the contract authority heretofore granted to the President under the head ‘Mutual Defense Assistance Act’ in the Second Sup- plemental Appropriation Act, 1950, are here- by authorized to be made available until June 30, 1961.” Src. 11. Section 404 of such act is hereby amended to read as follows: “Src. 404. The President may exercise any power or authority conferred on bim by this act through such agency or officer of the United States as he shall direct, except such powers or authority conferred on him in section 405, in clause (2) of subsection (b) of section 407, and in subsection (c) of sec- tion 408.” Src. 12. (a) Section 408 (c) of such act is hereby amended to read as follows: “(c) Whenever he determines that such action is essential for the effective carrying out of the purposes of this act, the President may ‘rom time to time utilize not to exceed in the aggregate 10 percent of the funds and contract authority made avatlable for the purposes of any title of this act for the purposes of any other title, or in the event of a development seriously affecting the security of the North Atlantic area for the purpose of providing military assistance to any other European nation whose strategic location makes it of direct importance to the defense of the North Atlantic area and whose immediately increased ability to defend it- self, the President, after consultation with the governments of the other nations which are members of the North Atlantic Treaty, finds contributes to the preservation of the peace and security of the North Atlantic area and is vital to the security of the United States. Whenever the President makes any 10631 such determination he shall forthwith noti- fy the Committee on Foreign Relations of the Senate, the Committees on Armed Services of the Senate and of the House of Represent~ atives, and the Committee on Foreign Affairs of the House of Representatives.” (b) Section 408 (d) of such act is hereby amended to read as follows: “(a) Upon approval by the President, any currency of any nation received by the United States for its own use in connection with the furnishing of assistance under this act may be used for expenditures for essential administrative and operating expenses of the United States incident to operation under this act and the amount, if any, remaining after the payment of such expenses shall be used only for purposes specified by act of Congress.” (c) Section 408 (e) of such act is hereby amenied to read as follows: “(e) (1) The President may, from time to time, in the interest of achieving stand- ardization of military equipment and in order to provide procurement assistance without cost to the United States, transfer, or enter into contracts for the procurement for transfer of, equipment, materials or serv- ices to: (A) nations eligible for assistance under title I, II, or IIt of this act, (B) a Nation which has joined with the United States in a collective defense and regional arrangement, or (C) any other nation not eligible to join a collective defense and re- gional arrangement referred to in clause (B) above, but whose ability to defend itself or to participate in the defense of the area of which {t is a part, is important to the se- curity of the United States: Provided, That, prior to the transfer of any equipment, ma- terials, or services to ea nation under this clause (C), it shall provide the United States with assurance that such equipment, materials, or services are required for and will be used solely to maintain its internal security, its legitimate self-defense, or to permit it to participate in the defense of the area of which it is a part, and that it will not undertake any act of aggression against any other State: Provided further, That, in the case of any such tranefer, the President shall forthwith notify the Committee on Foreign Relations of the Senate, the Com- mittees on Armed Services of the Senate and of the House of Representatives, and the Committee on Foreign Affairs of the House of Representatives. “(2) Whenever equipment or material 1s transferred from the stocks of, or services are rendered by, any agency, to any nation as provided in paragraph (1) above, such nation shall first make available the fair value, as determined by the President, of such equipment, materials, or services. The fair value shall not be less for the various categories of equipment or materials than the ‘value’ as defined in subsection (c) of section 408: Provided, That with respect to excess equipment or materials the fair value may not be determined to be less than the value specified in paragraph 1 of that sub- section plus (a) 10 percent of the original gross cost of such equipment or materials; (b) the scrap value; or (c) the market val- ue, if ascertainable, whichever {is the greater. Before a contract is entered into, such nation shall (A) provide the United States with a dependable undertaking to pay the full amount of such contract which will assure the United States against any loss on the contract, and (B) shall make funds available in such amounts and at such times as may be necesaary to meet the payments required by the contract in advance of the time such payments are due, in addition to the esti- mated amount of any damages and cosis that may accrue from the cancellation of such contract: Provided, That the total amount of outstanding contracta under this
10632 subsection, less the amounts which have been paid the United States by such nations, shall at no time exceed $100,000,000.” Sec, 13. The present section 405 (d) of guch act is renumbered as section 405 (e) and a new subsection 405 (d) 1s added to read as follows: “(d) if, in the case of any nation, which is a party to the North Atlantic Treaty, the President determines after consultation with the North Atlantic Treaty Council that such nation is not making its full contribution through self-help and mutual assistance in all practicable forms to the common defense of the North Atlantic area; and in the case of any other nation, if the President de- termines that such nation is not making its full contribution to its own defense or to the defense of the area of which it is a part.” Mr, KEE (interrupting reading of the bill). Mr. Chairman, I ask unanimous consent that the further reading of the bill be dispeased with and that it be open for amendment at any point in the bill. The CHAIRMAN. Is there objection to the request of the gentleman from West Virginia? There was no objection. Mr. KEE. Mr. Chairman, I move to strike out the last word. Mr. KEE. Mr. Chairman, in my at- tempt yesterday tu explain this bill I told the members of the Committee that it had been passed by the Senate with- out a dissenting vote. The vote on the passage of this bill in the other body was 66 to 0. Mr. Chairman, this bill has been con- sidered by the Committee on Foreign Affairs of the House for a period of approximately 6 weeks. We had evi- dence from practically all of the depart- ments of the Government, particularly the military and State Departments. We went into the matter in light of our experience on the basic measure last year and in light of the evidence that we had before us during the hearings of the present year. We went into the matter in light of the action of the Sen- ate on the bill and after thorough and complete and earnest study of the mat- ter. With 18 members of the commit- tee present and six members voting by proxy, the bill was reported out of the Committee on Foreign Affairs without a dissenting vote, to wit, 24 to 0. Mr. Chairman, I am proud of the ac- tion of the Committee on Foreign Af- fairs, I am proud of the action of those members of the committee who are of different political faith from myself, For the past 18 years I have been a member of and working with the com- mittee. There are perhaps only two members of the committee, in addition to myself, who were members when I came here i8 years ago. My beloved and distinguished friend, Dr. Eaton of New Jersey, has been a tower of strength to me and has stood at my right side at all times when his help was needed most. The genticman from Ohio |Mr. Vorys] has been with me in all of these measures for the good of the country. They have ignored their political affi- liations, they have overlooked all fac- tional and all partisan politics for the purpose of joining me in doing what we believed to be in our country’s interest. The committee, as I have stated, thor- CONGRESSIONAL RECORD—HOUSE oughly studied this measure, and after due thought, the 24 members voted to report the bill out, and all join me in hoping that no amendment will be of- fered or accepted to the bill. As Istated, this measure was passed unanimously by the other body after long and earnest consideration. We of the House com- mittee, have gone into it carefully. We cannot possibly see where any improve- ment can be made in the bill. If the bill is passed in its present form and as it came to us from the Senate, there will be avoided the trouble of going to conference in order to iron out little matters of difference that might be in- jected by amendments. I asked that the bill be open for amendment at any place, but I do hope that no amendment will be offered. If one is offered I ask you in all sincerity—and I think I am joined in that request by members of my com- mittes, including those who are of op- posite political faith—-that it not be adopted. In the interest of our country at a critical time, let us stand shoulder to shoulder and side by side on this im- portant matter. Mr. McCORMACK. Mr. Chairman, I move to strike out the last two words. Mr. Chairman, like the gentleman from West Virginia [Mr. Krel, chairman of the Committee on Foreign Affairs, TI hope that there will be no amendments offered to this bill, and if any are of- fered, that they will be rejected. I rec- ognize some Members are interested in amendments, and there are some that I personally agree with, but that is an- other day. We can take care of that on some other occasion. Mr. VORYS. Mr. Chairman, will the gentleman yield? Mr. McCORMACK. I will be glad to yicld to the gentleman. Mr. VORYS. The message of the President just delivercd indicates that after checking with the other free na- tions there will be, in a short time, fur- ther consideration of this legislation, in the light of the then situation. At that time, and when that consideration takes place, the committee will certainly be glad to consider changes in this legisla- tion. Mr. McCORMACK. There is no ques- tion about that. Mr. VORYS. At the present time the President has joined in the unanimous request of your Committee on Foreign Affairs that we shoot this thing through in a hurry as is. Any Member who wants to suggest changes in the pattern can have them considered properly with- out bringing them up tcday, and it would seem quite in order for the House to comply with the suggestion of the President and both sides of the Commit- tee on Foreign Affairs. Mr, McCORMACK. Iam in complete agreement with my friend, and I think that the gentleman from Ohio [Mr. Vorvs! made a very pointed observation that Members could suggest amend- ments, talk about them. I hope that quick action will be taken on this bill, because that is the best message to the world, as well as the suggested amend- ments that the Members have in mind and what they hope the committee will consider in connection with future legis- JULY 19 Jation. I think it is vitally important to get this bill through as reported out by the committee. Mr. JAVITS. Mr. Chairman, will the gentleman yield? Mr. McCORMACK. I yield to the gentleman from New York. Mr. JAVITS. Since a’ the members of the Committee on Foreign Affairs were in favor of a Pacific pact, they cer- tainly could have amended the bill, but they exercised their self-discipline and did not even amend it to that extent, though they were unanimous. Mr. McCORMACK. Take Spain, for example. I think we ought to reestab- lish our diplomatic relations with Spain. I have stated that publicly repeatedly. We know that the action that the Securi- ty Council of the United Nations tock was unwise, but they are to meet shortly and we hope that they will take care of the situation and take counter action, and that our Ambassador will be sent back to Spain at once. I think personal- ly it should have heen done long ago, in fact, our Ambassador should never have been recalled. But, under this bill the President has the power to improve that situation with reference to Spain under the North Atlantic Pact and such action would be in the national interest of our own country. And, while I have very strong v.ews on this bill, as far as any amendment to this bill is concerned I think that can wait until later on, be- cause this law is probably going to be amended later on; as it should be. Any amendment offered would only embar- rass this bill which is of vital importance at the present time. Mr. COLMER. Mr. Chairman, will the gentleman yield? Mr. McCORMACK. I yield to the gentleman from Mississippi. Mr. COLMER. I want to concur in the particular statement of the gentlc- man from Massachusetts regarding the recognition of Spain. I made a similar statement upon the floor when the able gentleman from South Carolina was speaking on that subject some weeks ago, and received some adverse criticism therefor. But, I am even more convinced now than I was then, in the ight of recent world developments, that my po- sition then was a correct one. If we are going to fight communism, we have got to fight it with all of the materials available. I want to commend my friend for the position he takes. Mr. McCORMACK, The uppermost question in the mind of the gentleman from Mississippi and in the minds of the people of the United States is what course of ection is for the national in- terest of the United States. Fortunately, the national interest of our country ts consistent with the best interests of free- dom-loving people throughout the world and who want to be free as far as their future aspirations are concerned. But above all, the national interest of our own country is and should be uppermost in the minds of all of us. Mr. Chairman, on January 23, 1947, I stated in a speech in the House of Representatives: I publicly charge that the failure to bring about permanent peace today is due to the unwillingnecs of the rcpresentatives of the
1950 Boviet Union to cooperate with the under- standing necessary to bring about a world peace. In addition to the European situation we must also consider Communist efforts in Asta and all over the Far East. On March 28, 1947, I said, in part: Soviet Union is using its ideology to chal- lenge the way of life we believe in, as well as it being a part of its military effort to encircle America. Yes, we are interested in China, not only for the affection for the peo- ple of China, although we cannot be inter- ested alone because of sentiment or affec- tion, we are vitally interested, as I see it, be- cause the national interest of our country prompts it. On March 31, 1948, I said, in part: We cannot afford at this time to let even the smallest speck of an island in the At- lantic get into the hands of a potential enemy of ours (Soviet Union), On February 14, 1949, I said, in part: The Soviet Union is challenging our way of life; that the ideology known as com- munism is simply used by-the Soviet Union as @ nation to deceive people and through it take over country after country and bring them within the orbit of the Soviet Union. The Soviet Union is imperialistically in- clined, Its imperialism takes the form of an ideology to dominate the world. Ultimate- ly every one of their actions its aimed at the United States of America. The American people can stand only 80 much and if the Soviet Union thinks they can proceed on the theory that we are afraid of them, they are likely to wake up some morning realizing that they have misunder- stood the mind and the temper of the people of America. On October 14, 1949, I said, in part: Communism attempts to impose its ide- ology by any and all means upon all the peoples of the world. The imperialistic policies and Intentions of the Soviet Union are hidden behind the Communist ideology, and as this ideology spreads, imperialistic Soviet Union steps in and takes over. On January 19, 1950, I said, in part: Should we fall to act in the case of south- ern Korea, the last foothold of democracy in northeast Asia will be lost. On March 28, 1950, I also said, in part: The Soviet Union is trying to drive us out of Europe and Asia, in order to get control of the productive capacity of west- ern Europe and in turn use it against us end in southeastern Asia to get control of the raw materials which they need today. The American people want to live in peace with all other peoples, but not at the sacrifice of liberty. There is nothing that America seeks only friendly relations and peace with all nations, but peace with liberty not peace with slavery. Dictators are quite prone in their feel- {ngs of exaltation, of grandeur, or im- pertalism to underestimate the minds and the courage of a free people, and a people who are determined to remain ree, They fail to understand the moral values that make up the minds and determine the actions of a people deter- mined to continue to possess freedom and Hberty, but if they are wise they will profit by the past experiences and fortunes of dictators who dreamed and undertook to have their dreams and destructive ambitions accomplished, CONGRESSIONAL RECORD—HOUSE Let the masters of the Kremlin re- member that only a few years ago Hitler dreamed—had ambitions—warred and was defeated by peoples who wanted freedom and peace. Let those persons take heed that there is no division among Americans; that the American people recognize the dan- ger today far better than they did in 1939-40-41, and that other free peoples recognize the danger. The masters of the Kremlin should know that America and other free peo- ples under the leadership of President Truman are not going to have another Munich, So far as we of America and other free countries are concerned, we have had plenty of warnings. The latest and most effective is the Communist aggression against South Korea. It is now apparent the Communist leaders thought the United States would not join issue on Korea, but permit Southern Korea to be conquered and a good part of its people liquidated. They expected we would make diplo- matic protests only, and behind their subtle words of diplomacy laugh and jeer at us. They expected only diplomatic words of protest on our part, and also Great Britain and other remaining free coun- tries, and that the result, if our coun- try followed the course of fear and appeasement would be a complete loss of prestige for us throughout the world, with all other free countries losing con- fidence in the United States. The attack on Korea is a warning and @ signal to us. It should tell us that communism aims for world domination. Communism stands for aggression, imperialism, con- quest of countries, enslavement of peo- ples; either that or death. The attack on Korea has shown the world more than anything else the neces- sity for preparedness. We have and will have hard decisions to make, but we should do so with courage. It is better for us to resolve any doubts in favor of power, rather than weakness. Mr. JAVITS. Mr. Chairman, I move to strike out the last word. I join with my colleagues on the Re- publican side and with the majority leader in the expectation and hope that we will pass this bill immediately and unanimously, indeed, as it was jn the other body. I wish to take only a minute or two to comment upon the President’s message. The President’s message at Jong last re- flects a widespread feeling in the coun- try that we are beginning to take action in the magnitude, with the decision and—I emphasize this—the  self- sacrifice which it is going to take to de- feat this Communist menace. We are laying aside business as usual, which we should have done 5 years ago, in order to deal with this very real threat to our freedom and to the integrity of our country, and of the world. I regret that the President completely bypassed doing anything with respect to the runaway cost of living, indications of 10633 which are already present. I should have hoped that the least he could have done on that score would be to establish the necessary conservation agency which would guide both business and consum- ers in their own self-discipline, in an ef- fort to avoid runaway price Increases and matériel shortages. I think it is clear to everybody, and it certainly should be clear to us, that the one thing which will be grist for the Com- munist mill] is a depression, a cataclysmic depression in the United States. It is the one thing the Communists are counting on, the one thing thcy are hoping for. The figures showing America’s economic strength and America’s economic re- sources which are contained in the Presi - Gent’s message are certainly the most eloquent answer as to our capability to defeat communism. What we are talk- ing about now is how to harness those figures and make them fighting sol- diers in the cause of democracy for the free peoples. The President’s message is a good beginning. Mr. RICH. Mr. Chairman, I move to strike out the last word. Mr. RICH. Mr. Chairman, to me this is a solemn, solemn occasion. I was in the well of this House after Pearl Harbor when all the Members of the House got together almost as a unit to defend this great Nation of ours, to try to make the world safe for democracy. I want to stop communism, starting here at home. We should lock up every Communist we can find. No time to do any more fooling. Mr, Chairman, you should start with Harry Bridges. I have listened to the statement made here by the chairman trying to get a unanimous vote on this bill, and I have listened to the President’s message which was just read to us. I have a heavy heart. Ifeel very bad personally. I was in my office this morning trying to check over the statements made by Members of the House yesterday. I have come to the conclusion that when you want to try to get a unanimous report it is al- most a heartbreaking thing when you see some of the things that have hap- pened in the last few years by this ad- ministration. We talk about being a peace-loving nation. Instead of trying to use our efforts to bring peace to the world, we are doing too much war talk, too much warmongering, and we are get- ting into too many foreign complications, During the last year when we started to arm all the nations of Europe under the North Atlantic Pact I opposed that great- ly and I have not voted for any of it. I just cannot vote for that feature of the bill because I believe it is wrong. If you want to get peace, why, then prepare for peace and try to do things by peaceful mefns instead of going out and trying to arm the whole world figur- ing that you are going to get peace by arming all the nations of the world. It 4s proper to arm our own Nation. That is what I would be willing to do for our own defense. We have been doing a great deal in that respect. In 1946 we spent over $45,000,000,000. In 1947 over $14,250,000,000. In 1948 about $11,000,- 000,000. In 1949, $12,000,000,000. In the last 4 years we have spent $82,000,000,000
10634 or more for our armed services, What has happened to all that money? Where are we today, if we are not prepared to defend ourselves? It makes it hard for someone to get up here and vote for this legislation now when this legislation pro- vides for $1,222,500,000 to arm all these countries in Europe of the North Atlantic Pact when from the appropriation that you made last year there is still remain- ing $214,000,000, and add that to the ap- propriation that you want now, it makes $1,436,500,000 to arm other nations, That is a great deal of money tome. But it is not all the money that we are being asked for here to arm others. It is the fact that we are arming all the nations of the world instead of trying to get things done by peaceful means and work- ing these things out in a peaceful way. I just do not believe in the way that the President is doing it that you are going to get peace. It is war—notwithstand- ing he says we are not at war in Korea. The way we are going at it, we are going to continue to have war. When you build up the war machines of these other nations, they will want to use them. You might say, “We do not want to do it’—no; but when you arm all these other nations, you do not know whether they are going to be armed for the pur- pose of trying to do something that we want done, or whether they might want to use the arms against us. I wonder what we are going to do if you conquer Korea now? Then you may have to go into China. We do not want Korea. We do not want any part of it. What are we going to do if you have to go into China and war in China. You are going to have the biggest wildcat by the tail that you ever had in your life. I would rather not touch it at all. I do not want any part of it. But there are other nations that you are going to have to do the same thing with, and then where are you? After you get into those countries, you will wreck America. That is just what you are going to do and that is just the thing I do not want any part of. I cannot see how you are going to do it, but I do want to say this—when there are so many of you here and you all seem to be as a unit on this, I do not want to be the one who is going to be standing by and try to oppose all of you. I have always believed in the majority rule. I want to be with the majority of Americans to do the things that are good for America, but I just do not think you are doing the right thing. The President is not doing the right things, It grieves me greatly to see you taking this atti- tude in trying to force this legislation down our throats. God save America— because I do not believe you are doing it. It looks like the President is getting us into world war III a little at a time. Now, watch out that y6u do not wreck our country, trying to save the world. Let every nation in the United Nations send their men to the front-line trenches. Do not expect American boys to be killed to save the world and the world standing by watching us try to do it. You will kill our own boys and wreck our Government. God save America, let the people wake up before it is too late, CONGRESSIONAL RECORD—HOUSE Mr. WALSH. Mr. Chairman, I move to strike out the last word. Mr, Chairman, I have taken this mi- crophone but few times since I have been a Member of this House. I sat here yes- terday and listened to these debates with great interest. I do not think the Amer- ican people are interested in apologies. I do not think the American people are interested in how any Member on either side voted on previous legislation, I think the American people are willing to recognize the fact that we are in a shooting war, and war is not like a horse race. We do not collect any prize for running second or making a show. We are in a war that is going to determine the future conduct of the world from this time on. I happen to be the father of four young children, and I want them to have the same opportunities that you and I had. I think it is time for this Congress to act and to follow the recommendations of the President and cease all of this con- versation and blaming one another and trying to apologize. I, for one, do not care how any Member voted previously. The vote today is the vote that counts. We are interested from this time on in how Members vote in preparing this Na- tion for a war that may go to the pro- portions of the Second World War, and I think we should cease our conversation and get down to a vote. Mr. Chairman, we are now engaged in a hot war; it is yet small in com- parison to the First and Second World Wars, and we hope it will remain that way, and will soon be over. However, I feel that we are just see- ing the beginning of the third world war. My opinion on this matter is based upon a study of past history and a knowledge of the ideas and purposes of the Communist Party and the Comin- tern in Moscow. The Soviet Union and it alone will determine whether or not there is at this time a third world war—the Ko- rean war was not a war of our choos- ing. It is a war fought a long way from the shores of this Nation; a war that is difficult to explain to our people, but a war that is as important to win as any we have ever been engaged in. For more than 100 years we have had a blueprint of what we could expect from Marxism and the plan of the Commu- nists to take over the world. Just 33 years ago the Communists seized the government in Russia and from that day we haye seen the everlasting and con- stant efforts of that nation to force its evil influence upon the rest of the world. We must all now be aware that there is no twilight zone in this world, either we are to live in peace, or the world will be enslaved and fettered in chains. We have two ideologies, one represent- ing the Christlan approach to the prob- lems of men and the other representing the evil. This is a battle of survival and will not cease until one or the other is defeated. My greatest fear is the extent of a world war and its eventual cost in lives and property. We cannot expect an easy victory, a victory for right is never easily ob‘ained. I wonder just how the JULY 19 democratic world would respond to a war of 10 to 20 years’ duration, and it could well take that long. To the Communist, time means little in the over-all picture, if victory is as- sured in the end. By prolonging a war and by delaying action and the wearing out of the patience of the people of the democracies and their will to fight, they hope to obtain a negotiated peace; that means victory for them. This fear is felt among many of the great military minds of this Nation. It is difficult for me to believe that the Korean War is not part of global plan of the Soviet Union. <A preface, or pre- liminary move. Quick, decisive and positive action must be our job now. Victory must come soon so as to convince the other nations of the world that America has the strength and the will to fight. We must accept the fact that war is no longer around the corner; it is here. The North Koreans are confident of vic- tory. This is evidenced by the fact that they are taking few prisoners of war, and killing many of those they do take. They do not expect to ever stand before @ world court of justice. We refused to accept, for a long time, the fact that Russia was determined to destroy us, and the rest of the world, to spread her ideology of hate. We did appease this giant of nations in a hope that peace could be maintained. There were those in this Nation that cried out during the past 5 years, for business as usual. We economized at the expense of our country. We failed to recognize that we were living in an uneasy period of armistice. Now we have awakened to find ourselves at war, and the papers each day carrying a list of the war casualities. As a Nation, and a people, we have been guilty of gross neglect. There are extenuating circumstances. Surely, we loved peace, we love our neighbor, we abhor war, we want to maintain our high standard of living; we want lower taxes, we do not wish to have controls; we do not like to prepare for a war that may never come because of the cost, and for many many other reasons, but the truth is, we were guilty of the most gross neg- ligence, and the blood of the boys dying in Korea is on all of our hands, yours and mine. Tears, regrets, name calling, shifting of blame will not win this war or keep us out of any to come. We live today and hope for tomorrow. It is my considered judgment and the judgment of many in high places, who should know, that we have et the very best, a 6 months’ to a possible 9 months’ period before full hostilities. Mind you, I said, possible. We may have 6 hours or 6 days or 6 weeks. However, whatever the time may be, there is no such thing as painless preparedness. Half measures are not sufficient. The Atlantic Pact, recently cementing America and the free democratic nations of the world has not yet produced the pooling of resources and manpower. There is no Pacific pact. With all due respect to our valiant allies, the respon- sibility of conducting the Korean War and preparing for any future eventuality falls upon the shoulders of this Nation.
1950 The chief barrier now to all-out effort is unwillingness to face the fact that war with Russia is almost inevitable. Our officials are hesitant to ask the American people to make the necessary sacrifices that are involved. My friends, as the father of four littie children, not of school age, and I feel strongly about this matter of prepared- ness, I want these babies to have a free world to live in and to have some hope of peace and security. I am personally willing to make any sacrifice for their, and all of our children’s future. Not only is the security of their future in doubt, but there is serious possibility that their very lives may be snuffed out in case of an atomic war. We have been selling ourselves the quack remedy of painless preparation. There ts no such thing. Preparation for war is next to war itself. It means the highest form of personal sacrifice. We cannot have short hours of work, all the meat we want; butter, coffee, cheap hous- ing and rent and prepare to fight a global war. Many of these little things in life may have to be sacrificed. A strong mili- tary, second to none, is our goal. In this battle of survival, unlike a horse race, there is no second place; it is vic- tory or complete and final defeat. Dr. William Lowe Bryan. beloved presi- dent emeritus of Indiana U niversity, once wrote: On every side death— Or where not death, despair and surrender. Not so with me. In me no surrender, In me the will to live, The will to live victoriously, Victory is possible and probable, as I firmly believe that God marches at our side, Sometimes we wonder just why certain things happen, and we ask just why is a war brought down upon us, when we do not want it and are trying so hard to avoidit. Perhaps it is His will and His way to test us, to try us for even greater things to come. He will not let us down, if we accept our responsibility and stand up with the Christian nations of the world in this crusade of the twentieth century. As knights of old went forth to battle in the name of Christ, we who have fol- lowed since then are today unfurling the banner of right and good in this battle to protect and save our fellow man. In our will to win and in Him who can lead us to victory we place our trust. Mr. FULTON. Mr. Chairman, I move to strike out the last word. Mr. Chairman, I had not intended to speak, but I rise at this time shortly to answer my good friend the gentleman from Pennsylvania (Mr. Ricw#] on whether this mutual defense assistance program is more or less costly than his thinking as to a plan. The question came up before the For- eign Affairs Committee whether it would be more costly to arm our allies, espe- cially the ones under the Atlantic Treaty, or just draw back into the United States and arm just ourselves, without any friends along with us. That problem was brought up by the gentleman from Ohio (Mr. Vorys} when he said this: Mr. Vorya. General Marshall, here is a proposition we often hear: If we build up CONGRESSIONAL RECORD—HOUSE European military strength we precipitate war, because Russia will strike before the military balance is against her, possibly be- fore the balance is even; that in such a strug- gle we could not be sure that our European allies would fight; that, therefore, the thing to do is arm to the teeth here and not dis- sipate our military strength there, but to as- sure those nations by announcing that we will fight if Russia attacks western Europe. That is one formula that we hear often and one which has many advocates. I would be glad if you would give us your comments on that. General MarsmaLtt. © * * I think, in the first place, a negative attitude is fatal. I think the attitude of arming to the teeth here and leaving Europe impotent ts wrong. I think it is psychologically wrong and mili- tarily wrong, and just generally wrong. That procedure also assumes the policy that when Europe is overwhelmed we can go ebout our business in the usual way, which we could not, in my opinion. We will be curbed and restricted in many ways aside from the direct threat to our own peace. We would have the whole world in the other camp. That would be a terrible position for us here. Then the other question came up as to the expense of the same proposal as that of the gentleman from Pennsylvania (Mr. Rick], and General Marshall said: That would be a futile procedure and in- volving great expense. We can have planes with tremendous radius of action. We can have ships that will dominate, we will say, most of the sea. But everywhere on land we would be impotent, and the movement from the United States to the European field would be virtually an impossibility under those con- ditions. So that our arming to the teeth here would merely mean that we were going to live an isolated existence in the world, militarily, economically, and politically. In closing, the question was asked as to the exact amount of dollars that this al- ternative propounded by the gentleman from Pennsylvania [Mr. Rich] would cost, and the gentleman from New York (Mr. Javits] put this very question to General Marshall: Mr. Javits, General, would you estimate the increase of our military budget, either in or- der of magnitude or in dollars—it is now about $14,000,000,000—which would result from what Mr. Vorys has just described as @ policy of our arming to the teeth and not doing anything about arming Europe? General MassHALL. You mean our present actions toward our military budget—is that any indication we are arming to the teeth? Mr, Javits. What I meant was: Suppose we did do just what Mr. Vorys has asked—which is hypothetical—that we armed to the teeth and did not arm Europe. How much of an increase would that mean in our $14,000,- 000,000 defense budget? The gentleman from Pennsylvania wants a low budget, so here is General Marshall’s answer: I would say something around—well over $30,000,000,000 a year. Mr. Javirs then comments: Infinitely greater per annum than anything ‘we propose to do in even a 10-year program for western Europe? General Marshall, sald: “Yes.” So if the Congress wants a balanced budget and the lowest possible way to obtain adequate defense and defensive arms and a secure America the House should vote unanimously for this bill. 10635 Mr. RICH. Mr. Chairman, will the gentleman yield? Mr. FULTON. I yield to my friend from Pennsylvania. Mr. RICH. I have been interested—I was last week when I voted for the draft—to find out whether the United Nations was going to act asa unit. We stepped in, of course, before the United Nations had any chance to act. Mr. FULTON. We were already on the spot, and prompt action certainly was necessary. Mr. RICH. But you do not have one man outside of American troops in the field over there. I want some protection for our American boys; I want to get some of these other countries that are being defended and whom we are pro- tecting, to put their men in at the front and not put all American boys there to stop the bullets that are coming. Mr. FULTON. If you want outside as- sistance from friendly countries to aid our boys in Korea, then you should vote likewise for the arms necessary to help defend the homes and the people of the countries who come to our assistance. This matter of security and defense must be cooperative and mutual, and it is too heavy a burden for our country to carry alone. Mr. HOFFMAN of Michigan. Mr. Chairman, I move to strike out the last word, Mr. Chairman, I ask unanimous con- sent to revise and extend my remarks, also at the conclusion of my remarks on this bill to extend my remarks on the Tydings committee and its report. The CHAIRMAN. Is there objection to the request of the gentleman from Michigan? There was no objection. A POLICY WHICH WILL RUIN US Mr. HOFFMAN of Michigan. Mr. Chairman, the House has under consid- eration S. 3809, authorizing an appropri- ation of almost a billion and a half dol- lars to assist in arming certain friendly nations. If memory serves correctly, never since Germany and Japan sur- rendered has my vote been cast for any legislation or for any appropriation which I believed would commit us to fight in world war ITI. But the policy of this and the preceding administrations has put us into world war III. I expect to vote for this authorization of an appropriation bill to aid us in win- ning that war and for subsequent legis- lation along the same line for just one nN. Some 14,000 miles east from New York, some 5,000 miles west from San Francisco, off the southern tip of Man- churia, lies Korea. A policy of meddling in the affairs of other peoples and other nations which involved us In World War I and which we have followed consistently ever since, left our young men stranded in the southern end of Korea. A similar situa- tion may he created in other places. Nothing that I can say or do can ex- tricate them from that situation where, apparently, many of them are doomed to die, but few unwounded return to their native land.
10636 The President, in his message this morning, in effect told us that, because of the action of the Security Council of the United Nations, he had declared war against the North Koreans and, in efiect, against Russia, who, he charged, instigated and was supporting the ac- tions of the North Koreans. The President also, in effect, advised the peopie of this Nation and the nations of the world that the United States was pledged to and would assist each and every one of the 58 member nations which might ke attacked. But, to date, according to the New York Times of this morning, not one of those nations except Nicaragua has indicated any intention of sending a single foot soldier. Permit me to quote from the New York Times of this morning: No Unrrep Nations Memserrs Orrer To Smnp Men; RESPONSE TO Liz’s APPEAL FoR TROopS, Arm or Navat Unrts For Korea Is Sparse Lake Success, July 18 —-No member of the United Nations has yet offered to provide ground troops or additional air or naval units for the defense of South Korea in response to the appeal issued last Friday by Trygve Lie, the Secretary General. Although it is realized that such decisions require time, misgivings are being expressed about the possibility that there will be @ poor response that will be exploited by Soviet propaganda. Argentina notified the United Nations to- day that she wag planning to discuss with the United States the types of armed forces required, but she did not say whether she would be able to provide any. A Security Council meeting 1s to be held to receive the first report from Gen. Douglas MacArthur, commander of United Nations forces, but the United States delegation said it had been delayed, BRITAIN DENIES PLANS Lonpvon, July 18.—Reports that Britain and her western union allies were planning to vide a combined force in response to the United Nations appeal for help in the Korean fighting were officially denied today by the Foreign Office. It was also denied in author- itative circles that there was any plan under consideration to raise a combinod task force from Commonwealth countries for service in Korea. An opportunity will be given for the Brit- ish Government to explain in detail its attitude toward the United Nations request for ground troops to assist American forces in Korea when the full dress defense debato is held in the House of Commons next week, probably on Wednerday. As yet, the Cab- inet’s decision on the request for ground troops has not been made. AUSTRALIA WEIGHS MORE AID CANEERRA, AUSTRALIA, July 18,—AuUstralia, now considering additional aid for Korea, will not make available any ground forces such as a special expeditionary force or troops of the British Commonwealth occupation forces in Japan, it was authoritatively learned here today. But usually well-informed sources believe additional aid might include more warships and aircraft. PHILIPPINE STAND NEGATIVE Mania, July 18.—The Philippine Cabinet today endorsed President Elpidio Quirino’s stand that no Filipino troops be sent to the Korean battlefront. A spokesman said, however, the Govern- ment would not object to volunteering by individual Filipinos for service with the United Nations forces. The Netherlands and Argentina simi- larly indicated no action would be taken to send troops. CONGRESSIONAL RECORD—HOUSE Moreover, the President has ordered our troops to fight under the flag of the United Nations. The President, at the request of the Security Council of the United Nations and without authority under our law, has declared and is carrying on a war, He has usurped the function of the Con- gress. The President should be ousted and with him should go Acheson and all those who have been responsible for our present situation. The only thing that I can do to assist our men who are now stranded in Korea and the Far East, deserted by the United Nations, is to vote for this authorization and subsequent appropriations in the hope that at least some small part of the funds will be used for their relief. It is evident that our policy makers learn nothing, either from history or from our own experiences. There have been, and there are, those in this country who have so little faith in the soundness of our Government, the courage and the endurance of our people, that they believe that, for our continued national existence, we are dependent up- on and must join in some world-wide organization to which we look for guid- ance, under which we will find protection from communism, from Stalin We were inveigled into World War I by propaganda which lead a majority of our people to believe that, by the winning of that war, all war might be ended, universal peace established. The war was won. The seeds for World War II were sown. A Hitler, a Mussolini, and a Stalin were the fruits of that sowing. Hitler’s armies started east. Again, those here in America who believe that our existence depends upon fighting and defeating every would-be world con- queror stepped in, and World War I was fought and won. While our young men were fighting World War II, and afterward, through our efforts and contributions and by our compliance with the demands of France and Britain, our concessions to Stalin, he and communism were permitted to gather strength until today those formu- lating our foreign policy say he is now in a position to dominate the world. Neither World War I nor World War II gave us, nor will World War III in- sure, universal permanent peace. It profits us not at all to review the mistakes of the past, except as from them we learn how to avoid a repetition, how to follow a course which will preserve us as a Nation. At this time, it might be well to re- member that the Morgenthau policy, adopted and followed for a time by the administration then in power, has pre- vented the building up of the German people, brought about the destruction of a barrier which might well, had it been properly nurtured and guided, have stopped Stalin and communism at the border of eastern Europe. The policy of an Acheson, adopted and followed by the administration, has given to Stalin and the Communists a million or more fighting men in China, an effec- tive army which now threatens to push our forces in Korea into the sea, JULY 19 I do not question the patriotism of those in authority, of those who have been guilty of establishing, of imple- menting, a policy which is responsible for our present situation. But I do say, and I say it with sincerity, that adherence to that policy of attempting to lessen the ills of pecple everywhere in the world, dictate to other nations the form of gov- ernment which they shall follow, and to seek peace by participating in cvery war wherever anywhere in the world and for whatever cause it may arise, tends far more to destroy us as a nation than any direct assault that Stalin or Stalin and his satellites may direct against us. Two things I learn from history, and they are these: That any military leader, any nation, which seeks to conquer the world will either, because of overexpan- sion or because of the discordant ele- ments brought under one authority, destroy itself, The second lesson is that to win a bat- tle or a war, the fighting, driving force must not be permitted to get so far from its base that a sufficient supply of food, clothing, munitions of war cannot reach it. Until we can extricate ourselves from Korea, we here at home must do what we can to support those we place in danger. I have no doubt but that Stalin is fol- lowing a plan designed to involve us in as many wars on as many widely sep- arated fronts as his agents and his sat- ellites can bring about. You may remember that, in 1924, Nikolai Lenin wrote, “Some day we shall force the United States to spend itself into destruction.” Although the administration, in seek- ing power and appropriations, an- nounced the purpose of fighting com- munism, it is apparent to those familiar with the situation here in Washington, that Communists have been coddled and harbored by the preceding and by this administration. Instead of wholeheartedly fizhting communism abroad, we have followed a policy of appeasement and, in China, under the policy of an Acheson and his clique, have actually assisted in creating and in arming the forces which are now fighting in Korea. The internationalists in this coun- try—and, permit me to repeat, their loyalty, their patriotism, is not ques- tioned—have overlong had their way, and, in my judgment, unless a change is made in our policy, we will, by a con- tinued dissipation of our resources, by involvement in a half dozen wars in widely separated areas, so weaken our- selves that in the end we may be forced to make our last stand here at home, where some of unquestioned patriotism think we should have created a force and a defense which might well have defied Stalin, communism, any would-be world conqueror. When the unification bill was before the Congress, some of our military ex- perts advised us that the Navy, the ma- rines, were no longer essential to our national defense; that the next war would be a push-button war; that the atomic bomb made us master of the world; that all we needed to do was to
1950 spend billions of dollars in the develop- ment of it and other new weapons. The billions were spent, but we find our foot soldiers, ill equipped, slugging it out against overwhelming numbers in Korea. Our military experts seem to have been mistaken. Although I fear that support of this present appropriation, of subsequent ap- propriations designed for the same pur- pose, may contribute to our ultimate weakness, I cannot refuse to send aid to those now fighting on the other side of the world, not our battle but the battle of the internationalists. The only future security for our Nation which I can see is the election this No- vember of a Congress, and the election in® 1952 of a President, who will pay heed to the lessons of history and of experience, unite under a policy, followed by every other nation in the world except our own, of thinking of and acting for the people of their country and the preser- vation of their nation. Mr. Chairman, now just a look at the question of whether we are really fight- ing communism. Permit a reference to the conclusions set forth in the Tydings report, which, in the judgment of some, is an invitation to the Commuists here in the executive department to continue their efforts. On May 1, 1950, Concresstonat REc- orp, pages 6108-6113, the gentleman from‘Missouri |Mr. Karsten], from the well of the House made a talk, the evi- dent purpose of which was to prove that there were not and never had been Com- munists in any of the executive depart- ments, He was joined in that effort by the gentleman from Massachusetts [Mr. Mc- Cormick]. It was asserted that charges which had been made by a Member of the other body in certain 81 cases, were utterly without foundation. In the ConcressronaL Recorp of July 12, pages 9985-9988, will be found evi- dence indicating that the files in the State Department have been stripped of certain information which, had it re- mained, might have caused the gentle- man from Missouri and the gentleman from Massachusetts to reach a different conclusion. Just recently a committee of the other body filed a report, which, among other things, indicated that there were not and had not been any Communists in the executive departments. So that no one may be misled by what was said by the gentleman from Mis- souri or be in doubt as to whether the executive departments have harbored Communists, let me quote the gentleman from New York [Mr. Rooney], as set forth on page 2341 of the hearings of the subcommittee of the Committee on Appropriations, House of Representa- tives, Eighty-first Congress, second ses~ sion, and which hearings began on the sixth day of February, 1950: Mr. Rooney. You see the situation, Mr. Gladieux, is this: For a number of years this committee has been after the Depart- ment of State to cooperate with it and that Department through Mr. Peurifoy, the Depu- XCVI——670 CONGRESSIONAL RECORD—HOUSE ty Under Secretary, has gone along with the recommendations of the committee. And we find that the State Department, insofar as our information up to the moment is con- cerned, is quite clear of subversives, NEED FOR SIMILAR ACTION IN COMMERCE The story this year is that the Depart- ment of Commerce has taken the place of the State Department; that the Department of Commerce fs the outfit in Government which is honeycombed with people belonging to the Communist Party. Mr. Giapirux. Of course, we would have to challenge that. Mr. Rooney. I am just telling you that the public has gotten such an idea. We did not create it; but that is the current situation. Now, when the Department of State can come in here and point out that they have separated so many people for this reason, and so many for the other reason—and one of the reasons is homosexuality—and you are not able to point to the separation of 1 out of 46,000, it seems that something may be wrong. Permit me to quote from the speech of another distinguished Democrat, the gentleman from Virginia, the Honorable Burr P. Harrison, who, I am informed, appearing before the Manor Ruritan Club at Staunton, Va., on May 15, 1950, pointed out that— Attorney General Tom Clark— New a Supreme Court Justice— was telling a CIO convention that there were no Communists in the Government, insofar as was known, at the very moment Judith Coplon, now under a Federal penitentiary sentence, was busy stealing confidential] in- formation from the files of his own depart- ment, where she was working. Then again we have the findings in a report of the Subcommittee of the Army Finance Center at St. Louis, Mo., a par- agraph of which reads: During the past 8 years 63 persons have been investigated by the FBI as security risks at the Army Finance Center of which 44 have been discharged or resigned while under ine vestigation. Upon a review of all loyalty and security-risk cases at the center requested by the committee, recommendations for re- moval as security risks were made by the Department of the Army in at least three additional cases, Permit me to refer again to the hear- ings of Mr. k:ooney’s subcommittee on pages 2362-2363 and to quote as follows: Mr, GuaprEeux. I should not like the record to close, Mr. Chairman, without reiterating what I said before, that I think it is quite proper that we be called upon to defend our practices. I insist, however, that we have been diligent and cautious in our handling of these cases in the Department of Com- merce, While we have put the Government's interest paramount, we have not lost sight of the fact that inherent in cases of this kind can be very grave injustice to the individ- ual, but we have tried to approach it in a reasonable and intelligent way. I think we have done so in fill protection of the Gov- ernment. That we have handled our loyalty cases with the proper combination of vigi- lance, on the one hand, and employee justice, on the other, is indicated by the fact that we have to date not been overruled or re- versed in any case by the Loyalty Review Board either as to acquittals or dismissals, ‘To determine that an employee is disloyal to his Government, and thereby to brand him as & subversive and a traitor is not a Judgment that one makes lightly or indiscriminately. Though I have derived no pleasure from the 10637 duty, I have had to make such adverse deci- sions and shall probably have to make more, tough as they may be, I have no compunce tion in deciding against an employee on ap- peal or otherwise where there are reasonable grounds to believe that he is not fully loyal to the Government or is otherwise unsuitable on character or other security grounds for Federal employment. Mr. Rooney. That is all so much nice lane guage. To me it does not mean a thing. You have come up here this afternoon to acquaint us with the situation in the Doe partment of Commerce. The results have been nil, We have not had the cooperation from you that we have had from the Depart- ment of State. You refused to take us into your confl- dence with regard to these things, and I have tried to handle it in an amicable way so that if questions were raised on the floor we might have the answers to them. You have reacted in the other direction, away from us. So, now we are far apart, and we will have to stay that way. There is nothing that I can see thit we can do about it, Mr. Guapizux. I am sory, I feel that I have gone as far as I could, and as Iam authorized to go. Mr. Rooney. They have the right sp- proach on this in the Department of State. They speak of communism in the Depart- ment of State, but apparently the Commu- nist situation is no longer in the Department of State; 1 think it is in the Department of Commerce. Mr. Guapieux, We do not think so. We think we have handled the situation dili- gently. Mr. Rooney. I do not think so at all, when {t takes 18 months to decide whether a per- son in a very critical position at the National Bureau of Standards 1s a security risk. In view of the foregoing, is the recent report of the Tydings subcommittee con- clusive? Does not the language which I have quoted from the gentleman from Virginia and from the two reports be- yond argument show that, as charged by these two prominent Democrats, there have been Communists, there are Com- munists, in the executive departments? Mr. KEE. Mr. Chairman, I ask unani- mous consent that all debate upon the bill and all amendments thereto close in 40 minutes, the last 5 minutes to be re- served to the committee. The CHAIRMAN. Is there objection to the request of the gentleman from West Virginia? There was no objection. The CHAIRMAN. The Chair recog- nizes the gentleman from Indiana [Mr. HALLeEcK]. Mr. HALLECK. Mr. Chairman, first of all may I say I intend to support this measure. I am happy that action is being expedited, I want, however, to say, that we have heard much about bipartisan foreign policy in recent years but, as one who has had some contact with that, and as a Republican, I am constrained to say that too often, it seemed to me, we have not been called in at the take-off. We have been called in when the whistle blows for what may be a crash landing. I was the majority leader of the Eightieth Congress. Some of you will recall that it was in that Congress that the Chief Executive and his advisers proposed to us the program for aid to France and Italy, aid to Greece and Tur- key, the so-called Marshall plan, and it
10638 was that Congress which enacted those measures and others into law. However, we were not consulted with respect to the administration's program in Asia and, as a matter of fact, and as the record will show, we opposed much of it as it began to unfold, particularly appeasement of Communists. ‘We Republicans have for years urged and demanded a firmer and stronger policy against Communist infiltration and aggression in Asia, Our voices were ignored. Now we face a serious threat in Korea, with implications far beyond that peninsula. Our peoples may ask: Why did this situation develop? Why were we not better informed and pre- pared to meet it? One day those ques- tions must be answered. But today the question is, What do we do to extricate ourselves from this crisis which con- fronts us? The President has submitted proposals of the greatest {importance to the Amer- ican people, and the world. They in- clude billions more of spending, un- limited increases in our armed services, and all manner of controls and Govern- ment authority. May I say what certainly is unneces- sary to be said? Republicans are pa- triots. While we agree with our Demo- cratic friends that whatever may have gone before, when America is in trou~ ble—if we are in a war—there is only one thing to do, and that is to win the war. We shall cooperate with all due expe- dition to do what is necessary to guaran- tee our security, assure victory, and the fulfillment of our binding commitments. But in doing that we shall carefully look over all these requests and proposals. We shall operate on our constitutional responsibility as Members of the legisla- tive branch of the Government rather than grant unnecessary blank-check authority to the Executive. J believe that is what the people of the country, on the record of the past, want us to do and expect us to do, and I do not know how anyone could ask any more than that. The CHAIRMAN. The Chair recog- nizes the gentleman from Michigan [Mr. CRAWFORD]. Mr. CRAWFORD. Mr. Chairman, I had intended to offer an amendment to section 3, which is an amendment to sec- tion 104 of the original act, but in view of the contents of the President's mes- sage and the fact that the committee will probably be considering this bill again within the near future, I would like simply to point out to the chairman of the committee that when this bill does come up for consideration for further re- vision that at that time I would like to appear before the committee and dis~ cuss the practicality of the language which is set forth in section 3 of the bill, and which amends section 104 of the original act, as related to the job which has been pointed out today by the Chief Executive and which has been com- mented on by members of the com- mittee. My thoughts run in this general di- rection, that with the apparent total involvement in world war III which we now face, with everything that the CONGRESSIONAL RECORD—HOUSE American people have in blood and ma- terial things and energy being put on the barre] head, I cannot see how the language in section 104 of the original act that is here amended can square with the proposition that is before us. That was the only amendment that I had in mind offering to the bill, and I am simply letting the record stand with these comments. Mr. JACKSON of California. Mr. Chairman, will the gentleman yield? Mr. CRAWFORD. I yield to the gen- tleman from California, Mr. JACKSON of California. I con- gratulate the gentleman upon his state- ment. I, too, had an amendment which I had intended to offer, but in the light of the necessity for immediate action on the bill I would prefer to take it up before the committee when the matter is further considered. The CHAIRMAN. The Chair recog- nizes the gentlewoman from Massachu- setts (Mrs. RoGrErs]. (Mrs. Rogers of Massachusetts asked and was given permission to revise and extend her remarks and include an article.) Mrs. ROGERS of Massachusetts. Mr, Chairman, I should like to join the gen- tleman from Massachusetts in his state- ment that Spain should be recognized and taken into what I now cali the fam- ily of nations. She would add great strength to the United States and to that part of the world that is fighting commu- nism. Spain is a Catholic country. Cer- tainly no group in the United States or in the world is more opposed to commu- nism or is making a better fight against it or trying to show the world what it means not to have communism in it; and Iam not myself a Catholic but an Epis- copalian. Spain would be a protection also to us, as a matter of defense, against ageression, Mr. Chairman, I shall support this bill. I think it is necessary for our defense. Mr. Chairman, we have just heard a very far-reaching message from the President of the United States. There is not a loyal American in the United States who will not go along with him in what is needed to become victorious. We have always won, Mr. Chairman, and we will win today. As we listened to the President's far- reaching message every one of us real- ized that the personnel at the head of the departments that will administer these huge funds must be very carefully screened. If the person in charge of any department is not able to carry out the necessary protection of the country, he should be removed, This is no time for tolerating incompetence, either deliber- ate or unpremeditated. We realized also that our responsibility is great in saving every unnecessary expense in or- der to save our national economy, our national economy which Soviet Russia would like to destroy. Mr. Chairman, as we are trying to pro- tect in a military way the flower of our country that goes in to fight for us, we must try to protect our fighting families and our civilian population. As Mr, Lar- sen, who now is in charge of what is bee ing done against atomic bomb attacks, has said, there is no city or town in the JULY 19 Nation that can claim absolute immunity from wartime disaster at the hands of an enemy. It is as criminally negligent not to pre- pare our civilian population as it is not to equip our fighting forces. Mr, Chairman, I am introducing to- day the following bill: A bill to provide for the creation of the Office for the Coordination of Civilian Defense, and for other purposes Be tt enacted, etc., That this act may be cited as the “National Civilian Defense Act of 1950.” Sec.2. For the purposes of this act— (1) The term “Director” means the Direc- tor of the Office for the Coordination of Cti- vilian Defense which is created by section 8 f this act. (2) The term “State governments” shall include the governments of the several States, the District of Columbia, the Terri- tories of Alaska and Hawaii, and the posses- sions of the United States. Sxc. 8. (a) There is hereby created in the Executive Office of the President the Office for the Coordination of Civilian Defense, at the head of which shall be a Director appointed by the President, by and with the advice and consent of the Senate. The Director shall receive compensation at the rate of $15,000 & year. (b) Without regard to the civil-service laws, or the Classification Act of 1949, as amended, the Director is authorized to ap- point and fix the compensation of such per- sonnel as may be necessary to enable him to carry out his duties under this act, The Di- rector and employees of the Office fer the Coordination of Civilian Defense shall be allowed actual traveling subsistence, and other expenses incurred by them in the per- formance of their duties under this act. Sxc. 4. The Director, under the supervision and direction of the President, is authorized and directed to furnish guidance and leader- ship to State governments by— (1) Assisting such governments in the es- tablishment of defense organizations and agencies designed to coordinate the civilian defense activities of such governments; (2) Serving as the center for the coordina- tion of civilian defense activities of the Fed- eral Government and the State governments; (3) Advising and assisting in the prepara- tion of civil defense programs and measures designed to afford adequate protection of life and property in the event of emergency and which will be integrated with the civil de- fense plans of the Federal Government. Sc. 5, There are hereby authorized to be @ppropriated such sums as may be necessary to carry out the purposes of this act. Always the reply has been from the administration as to why nothing has been done year after year, fear of war hysteria. Better be scorned than killed. Nothing real has been done thus far in civilian defense. With the exception of e few cities that are partially organ- ized, the civilian population is as totally unprepared and unequipped as were our lines in Korea. This will provide an @gency to carry out leadership and guidance and see that it goes forward quickly, The agency should be a con- tinuing agency like the Red Cross and geared to an emergency. The following is the article in the Lowell Sun I have referred to: Arom-Boms Atrack Wounrp Finn Unrren Srates Wrrhovut Derense—Crvi. Protec- Tion Laos Far Bentnp Russia, Wares Has Comrpiets Proceam (By Phillips J. Peck) Wasnineron, July 17,—An atom-bomb attack on the United States tomorrow would
1950 catch the Nation with its guard down on civil defense. By way of contrast, Russia has a long- established civil-defense organization num- bering more than 20,000,000 participants and @ program of training 5,000,000 new “volun- teers” annually. The U. 8. 8. R. 20 years ago started dis- persing its industry, while much of the United States war-production might is con- centrated in a few major cities. DISPARITY American officials are acutely aware of this disparity. In light of the uneasy world pic- ture, they have accelerated United States planning to the fullest degree. But it will take time to obtain results; 2 years at least. It is doubtful the Nation will have any- thing like an effective national civil-defense force before 1952, and the home front will not be completely prepared for an atomic war before 1953. Civilian Mobilization Director Paul J. Lar- sen told Congress last spring: “There is one question which I am sure must be in your minds. What would we do if bombs should fall tomorrow? Would we be ready? “To be frank, the answer is that we would not be ready tomorrow—not as ready as we will be a year from now, but more nearly ready than a year ago.” APPRAISAL Today, 314 months later and 3 weeks after the cutbreak of fighting in Korea, Larsen finds no reason to change that appraisal of the situation. The answer as to why we are unready 1s not difficult, In the years immediately fol- lowing VJ-day nobody really faced up to the problem of civil defense. Federal planning was irregular; leadership changed frequently, and reports were made and pigeon-holed. President Truman’s dramatic announce- ment last September of an atomic explosion in Russia finally put steam into the United States civil-defense drive. Much time had een wasted, however, and no one knows for certain how much fs left. One military estfmat> is that by mid-1952 Russia will have a sufficient stockpile of A-bombs to do great damage in an attack on the United States. TOOK OVER IN JANUARY Larsen, 48-yenr-old clectronics engineer and former official of New Mexico atomic laboratories, took over the civilian-defense mobilization effort last January. He has the operation moving rapidly, and huge amounts of planning are going on. In the musty old State Department Build- ing adjacent to the White House Larsen's small staff of 27—drawing on the talents and ideas of 700 specialists in other Federal agen- cies—is whipping into shape an interim or “emergency” civil-defense chart. READY SEPTEMBER 1 It will be ready September 1 for transmis- sion to the governots of all States, territories, and possessions. This will constitute the Nation’s civil-defense blueprint while the master program is being built, volunteers trained, equipment standardized, and mate- Tials stockpiled. If one of our cities were attacked tomor- row, however, it would have to rely on its existing fire and police departments and med- ical resources, augmented by available mill- tary forces and some technical assistance from the Federal Government. Larsen and aides are constructing no huge Federal bureaucracy. They have a “grass roots” concept of civil defense. Washington can draft blueprints, provide technical data on the atom, stockpile equipment, and pos- sibly help finance the program. RESPONSIBILITY ENDS But there Federal responsibility largely ends, The States, and more particularly CONGRESSIONAL RECORD-—-HOUSE each individual city, will have to enroll and train volunteers and prepare itself to cope with an emergency of the type which bomb- blasted Hiroshima suffered some 5 years ago. After September 1 States and cities will be in a position to step up their civil-defense preparations. Thus far, however, only 22 States and Hawaii have enacted legislation to permit implementation of the forthcom- ing civil-defense guide. This despite Lare 6en’s grim warning: “There is no city or town in the Nation that can claim absolute immunity from war- time disaster at the hands of an enemy.” The CHAIRMAN. The Chair recog- rizes the gentleman from New Jersey LMr. TowE]. Mr. TOWE. Mr. Chairman, I intend to vote for this bill although I voted against a similar proposal last year. I did so because at that time it was quite apparent to me that we had no foreign policy that was firm in any particular direction, especially the east. When Stalin started to put the pressure on the Chinese Nationalists the administra- tion grudglingly gave them some aid. Eventually, however, we completely abandoned these friendly people who had done a great deal to help us win the last war. The administration has consistently refused to aid Spain—a country anxious to join us and the other free countries of the world in our all- out fight against communism. Spain should be invited to participate in the effort to defeat communism and be fur- nished aid, Despite the fact that in January of this year the administration leaders an- nounced their attitude toward the Chi- nese situation, which to all intent and purposes meant that we were withdraw- ins, our support in eastern Asia, the same leaders have now reversed themselves and have sclected a spot to make a stand against communism, which, in my opinion, is going to be extremely costly in lives and resources. If that policy had been adopted when the Chi- nese were attempting to resist the Com- x.unists, our participation would have been more valuable and at the same time less costly. In his message to the Congress today the President makes no suggestion that the administration will attempt to pro- vide money for the war cffort by econo- mizing at home. There is no suggestion that we cut down the tremendous spend- ing programs that have been proposed for our domestic economy, and which have been fostered by the New or Fair Deal. I prefer, as everyone here does, to live in a free land and under a free govern- ment and all of us, of course, are willing to make sacrifices. But if we are going to attempt to support and defend every spot in the world where Mr. Stalin, or his satellites under his guidance, decide to move in—and incidentally our lead- ers over the past 7 or 8 years have put the Communists in all of those spots— our country is going to wind up not only bankrupt, but we are going to be in the same kind of a situation as the people of Russia, We will never be able to per- form the herculean task of defending the world or the individuals in it whenever Stalin moves againt them without de- stroying our economy and reducing our- 10639 selves to the same kind of political sub- servience that the people of Russia now live under. I know we are strong. I know we are great. I know that our people are brave, but there jis a limit to what we can do. I hope someone in the administration will understand that before we go too far, and I also hope that there will be some effort made to reduce the tremen- dous domestic expense. I know that is unpopular. I know the people who call themselves great liberals never think of a thing like that. The object is to spend and spend and spend. Now, having al- most destroyed our domestic economy, we are embarking upon a program to spend the young men of our land. That is a terrific price that we are about to pay for the stupidity and lack of judg- ment on the part of the leaders in sev- eral departments of our Government. The CHAIRMAN. The Chair recog- nizes the gentleman from Pennsylvania (Mr. Konxeu). Mr. KUNKEL. Mr. Chairman, I am supporting this bill with a heavy heart and a great deal of reluctance. I have two good reasons for my action. First, we now find ourselves in a predicament which, in my judgment our foreign policy since 1947 had made absolutely inevitable. But since we are in this un- fortunate trouble, we have to hit it head- on and with all our courage and strength. Secondly, we can meet the present crisis best if we unite wholeheartedly and prove to the world that we are all back of the course which we now find it neces- sary to pursue. I am fundamentally opposed to the policy embodied in this bill. And since the results of that policy have been bad, it must be subject to constant reexami- nation with a view to correcting its faults. It has two main defects. The first and most fatal one is that it puts the direc- tion of the foreign policy of the United States and our military commitments un- der the control of the Soviet Union. I said that in May 1947, when the Truman doctrine was first advanced. President Truman said: I belHeve that it must be the policy of the United States to support free people who are resisting attempted subjugation by armed minorities or by outside pressures. That statement set no reservation on the type or scope or place of the proposed help and support. It was global and all~ inclusive. From then on, Russia could stir up a domestic strife or outside pres- sure wherever and whenever Russia wanted to force intervention by the United States, or else a retreat and con- sequent loss of face. Russia was enabled to force the extension of the policy to various areas of the world, carefully selectcd by the Kremlin, So when the North Koreans, urged on by the Soviets, started an aggression such as the attack on the South Korean Republic, and such a3 may be started in Indochina and else- where, it became clear that we are put- ting our policy under Soviet control and with the added disadvantage of per- mitting Russia to pick its spots. Since we have the policy and the commitments, it would be far more fatal to retreat than to go forward boldly to win our obiectives,
10640 My second main objective is that the policy is not related to the resources of the United States. By resources I mean manpower and materials and not merely dollars. Walter Lippmann has recently termed this general theory “deficit diplomacy.” You just heard the gentleman from Pennsylvania (Mr. Fu.- ron] quote General Marshall’s testi- mony to the effect that it would take $30,000,000,000 per year to arm this Na- tion adequately if we decided merely to protect ourselves here at home. Yet here you are with a bill for $1,250,000,000 with which it is claimed will arm ade- quately all the free nations in all sec- tions of the world. How can you do it? It just does not make sense; $1,250,000,- 000 is chicken-feed when compared to the job undertaken. Meanwhile, the President’s message of today shows that we must continue to arm the United States. We must realize that sooner or later the strain on our American man- power and resources is going to be fatal to our security here as well as to the hopes and aspirations of free peoples everywhere. Basic facts too frequently overlooked are these: We are a nation of 150,000,000 people in a world containing more than 2,250,000,000 men and women. We are the greatest, richest, and most produc- tive nation in the world, but we occupy enly @ small fraction of the world’s sur- ace. So I plead with the President and the policy-makers in the State Department to begin to relate our foreign policy to our domestic resources and our military power. Let us not rush into new ven- tures—no matter how high-sounding they may be—unless we feel reasonably certain that we can carry then through while preserving our security and free- dom. Let us not say we are going to do certain things unless we know for a fact that our manpower and resources are sufficient to carry them through to full completion. We must also have a policy allo.ring us to pick the spots and the conditions under which we will go to war, if we ever do have to go to war, instead of one requiring us to tackle a situation at the beck and call of the enemy. Our whole program needs reapprais- al in the light of our regaining the power to make our own decisions and in the Nght of not reducing our resources to the point where we will not be able to do the job. This is not said in any spirit of criticism. But we must study the past in order to avoid the same mistakes in the future. “The past is prologue.” The CHAIRMAN. The time of the gentleman from Pennsylvania has ex- pired. Mr, SHAFER. Mr. Chairman, I wish I could be as confident as the gen- tlewoman from Massachusetts [Mrs. RoceErs! as to the United States winning this war, but with the knowledge I have as a member of the Armed Services Com- mittee, and the way things are being run, I cannot be so sure, As is well known to this House we have spent well over $60,000,000,000 since the last World War for national defense and now, at a time of emergency, we find ourselves inade- CONGRESSIONAL RECORD—HOUSE quately equipped both in manpower and modern equipment to fight a war. In support of my thought I commend to the reading of the Members of this House the article in this week’s Satur- day Evening Post by Hanson Baldwin, well-known military authority, who in so many words says “we are not so hot” militarily, and proves his points very convincingly. I shall support this legislation and shall do all within my power to support this war effort. We have been put over the barrel and the only thing left for us to do is to roll up our sleeves and go to work. That it will be a long haul I have no doubt, The President’s demands for money and war powers today were s0 great as to constitute an acknowl- edgment of that fact. Let us not be fooled any longer with talk about police action in behalf of the United Nations. We are in a real war, and we are getting hurt. The little war in South Korea is only the first action in what undoubtedly will be a series of little wars—in Germany, in Yugoslavia, in Greece, in oil-rich Iran and Iraq, in Indochina and in the East Indies. At present the Kremlin dictator is operat- ing through his satellite stooges, but sooner or later he will resort to active warfare on his own account. The series of little wars cannot fail to burst into the flame of world-wide war. Now the administration and its sup- porters blandly are accepting mutual congratulations on their prompt and de- cisive action in ordering American troops to the assistance of the ill-trained and almost unarmed peasants of the South Korean Republic. They hope thus to fool the American people into ignoring, or forgetting some things that should not be ignored, and should not be forgotten. Those things comprise the revelations of lack of preparedness, lack of informa- tion, lack of coherent policy, wrong planning, both military and economic, and utter lack of statesmanship—things that have shocked the entire world; things that have caused this Nation to lose face in every part of the globe. After all our boasting—after all the statements by such men as Defense Sec- retary Louis A. Johnson, telling of our power and our preparedness—we stand revealed as unbelievably weak. Even our tanks are inferior to those made in Russia and shipped to the North Korean Communists. We were told that the 500-man Ameri- can military mission to South Korea was doing a wonderful job. We were told that the South Korean Army was trained and armed to an extent which would enable it to withstand any possible assault from the Communists of North Korea. But the first 24 hours of fighting revealed that the South Koreans were ill- trained and almost totally unequipped. It was disclosed by the South Korean Ambassador to the United States that American military aid consisted solely of 150,000 rifles, of which at least a third were obsolete, and a few miles of copper wire. The Fair Deal politicians had told the American people that in the event of war with Russia American power would be- JULY 19 gin to make itself felt within the hour. Well, the Korean War started almost a month ago, and we still are trying to build up enough strength to withstand the assault of the North Koreans, The South Korean Army has melted away into virtual nothingness, Even the free members of the United Nations are hesi- tating about sending ground troops to South Korea. Now these falsehoods and all this fool- ish boasting would not have been so bad if the Congress of the United States had failed to provide the money for adequate American military power. The lies and the boasting would not have been so senseless if they had been merely an at- tempt to cover up the failure of the Con- gress, But in the past 5 years Congress has appropriated billions of dollars for national defense, including economic aid. Then where today is that national de- fense? Of what avail has been the spending of billions for economic aid? South Korea got $400,000,000 of the lat- ter, yet the North Korean Communists take over almost at will. Is the situation in South Korea, with respect to economic aid, a foreshadowing of similar situations in other nations who now are receiving such economic aid? These things are bad enough. The sit- uation in South Korea is serious. Yet we may be sure that it will not be per- mitted for long to stay so. In spite of all the bungling, in spite of all the wrong guesses by the Fair Deal administration and its political appointees, the Ameri- can genius for production, the patriotism and willingness to sacrifice of the Ameri- can people will enable us presently to throw the Communist aggressors out of South Korea. Americans will do this in the end unless the millions of Chinese Communists now standing on the North Korean border are ordered by the Krem- lin to join the fray. In that event world war III will be on in earnest, and of that nobody now can foresee the end. But success in Korea, when it comes, and at whatever cost, will be no guaranty of peace. The circulation throughout the world of a peace petition, prepared in Stockholm by a Communist-front or- ganization, manifestly acting under orders from the Kremlin, would indicate that Stalin and his Politburo plan no let-up. That petition would declare the nation first using the atom bomb a war- criminal nation. Communists say that millions already have signed the petition in all parts of the world. The Kremlin would not have gone to all this trouble, if it were not ready to take the ultimate risk of the world-wide war. And while the Kremlin carries on this world-wide propaganda campaign, to discourage use by the United States of its most potent weapon, the Kremlin is busier than ever inside the United States itself. The Communist Party of the United States has gone entirely under- ground. It has done so without benefit of the Mundt-Ferguson bill, which would force all Communist Party members to register, and all Communist-front or- ganizations to reveal the pertinent facts concerning their operations. The Amer- ican Communist Party thus has acknowl-
1950 edged itself to be a treasonable con- spiracy, and not a political party at all. These Communist conspirators inside the United States; this conspiracy, led by Kremlin agents, and carried forward largely by native American traitors, com- prise a danger to our national security fully as great, if not greater, than Rus- sian expansionism in other parts of the world. While we close and barricade the front door to communism elsewhere in the world, we leave our back door wide open to the Communist fifth column, For Toviet Russia does maintain in this country an arrogant fifth column, de- signed to take over whenever the Krem- lin is ready. These fifth columnists in- sult our people; they attack our institu- tions, and they act as spies. The dis- closures by Senator JosrpH R. McCartHy have made all this very clear, indeed. As the Wisconsin Senator told the Amer- ican people, and proved his case to the hilt, these fifth columnists are in high Government offices. This in spite of the whitewashing given them by a Senatorial investigating committee. They are in newspaper offices, on the radio, in the schools, and even in the pulpit. Com- munist-dominated labor unions still re~ main in many of the largest plants de- voted to the making of munitions of war. Now why is this internal enemy so dan- gerous? ‘You may remember that Abra- ham Lincoln once said that America need never fear defeat by a foreign enemy; that if America ever should be destroyed, it would be from within. That is ex- actly the point, The Communist fifth column, which is our chief enemy at home, cannot be defeated openly in the field. It lurks behind the Iines; it as- sists the alien foe with strategems of trickery and treason. It is an internal enemy that seeks to contrive defeat by sabotaging the means of victory. The Federal Bureau of Investigation has said that it knows of more than 50,- 000 actual Communist Party members in the United States. The FBI has said further, that for every party member, there are at least 10 fellow travelers. A fellow traveler is one who consorts with Communists, who follows the Communist Party line, and who does all the things a Communist does, except to confess his adherence to communism. That would make approximately half a million peo- ple in the United States who are traitors, and who would resort to sabotage and espionage in the event of all-out war. And of this number, so the FBI has said, somewhere between 15,000 and 25,000 are actually engaged in war production; most of them in positions where they could help to wreck the plants upon which American boys must depend for their lives on the battlefields of the Far East. Now the Mundt-Ferguson bill, to which I referred a little earlier, would force all Communists to identify them- selves, and would smoke out the fellow travelers in the Communist front organ- izations, In peacetime such a law might be good enough. It would greatly sim- plify the work of the FBI and other police agencies in keeping track of the activities of the Communists and fellow travelers, But in wartime—at a time CONGRESSIONAL RECORD—HOUSE such as we have entered upon now—it would not be enough, And so what is the answer? Let us stop kidding ourselves. ‘There is only one thing left to do, if we are to make it possible for American boys to win on the battlefields abroad. The FBI knows who the Communists are, who the Russian spies are. The FBI knows the identity of nearly all of the fellow travelers. They should be out- lawed, every last one of them. We should round them up; put them behind a high fence in concentration camps. AS one editorialist remarked: “Give them nothing to read but Karl Marx and no picture to look at but Joe Stalin’s.” Keep them in detention camps until the war against communism is ended. In no other way can America defend itself; in no other way can we, as the leaders ‘of all freemen, keep ourselves safe and strong enough in the end to defeat the world-wide conspiracy of the murderous beasts of the Kremlin. And who, you may ask, is to blame for the situation wherein we must resort to concentration camps and other things so repugnant to all Americans? The blame, if your son is killed, should rest upon the Fair Deal politicians who com- promised, appeased, played with, and made deals with the Communists, in order to get a few more votes on election day. These are the men who must shoulder the blame. These are the men who must be put out of office if the American Republic is to survive as a government of freemen. But first of all, we must make ourselves secure at home, so that our fighting men abroad can have the things they need to win a war and do it without any more sacrifice than is unavoidable. Let us act now. Put the traitors behind a high fence. It will be cheaper in money and in blood than it would be to leave them at large to carry on their secret cam- paign of lies, and sabotage, and treason. The CHAIRMAN. The time of the gentleman from Michigan has expired. The Chair recognizes the gentleman from Minnesota [Mr. Jupp]. Mr. JUDD. Mr. Chairman, I should like to add a little footnote to this dis- cussion on a measure that I believe can be of the greatest value to us in winning the struggle in Asia that we have got to win. When history is written I suspect that one of the major causes of World War II and of world war IlI—if, God forbid, it comes—will be recognized as beginning in 1924 when the Congress of the United States passed the so-called Oriental Ex- clusion Act. At that time America’s stock was at about the highest point it had ever reached in Asia. True, we had opened Japan at the point of a sword, but we had then established good rela- tions, and these Japanese forces most favorable to the United States were in the saddle. In China more and more men were coming to powe: who, like Sun Yat-sen himself, had been trained in the United States and were more favorably @isposed toward ourselves and the west than any government China had ever had in her 4,000-year history. The parts of Asia under European colonial powers were increasingly turn- 10641 ing their eyes and hopes from Europe and other parts of the world to America for the new inspiring leadership of the future. And then our country did something that was both wrong and a mistake. To correct the labor troubles, particularly on the Pacific coast, arising from the lower wage standards of oriental immi- grants, we declared all Asians ineligible for American citizenship. There was a real problem—nobody denies the diffi- culty presented by the oriental who could and would work for a fraction of the white man’s wage—but Congress adopted the wrong solution for the prob- lem. If we had given as the reasons for excluding Asians the economic reasons which in most cases were the real rea- sons, there would have been hardly a murmur of protest. They know we are @ sovereign nation and have a right to regulate our own immigration. But we do not have a right to insult people be- cause of their race or color, at least not if we want them to be our friends and allies. Unfortunately the reason we gave for exclusion was the color of their skins. We branded every person any- where in the world who js of the yellow or brown races as being biologically in- ferior to ourselves. No matter what his or her education or brilliance or culture or charm or refinement or other accom- plishment, he or she was publicly stig- matized and permanently barred from ever being admitted for naturalization as a citizen of the United States, which at the same time proclaimed that God created all men equal. That day we turned Japan over to the militarists. They taunted the liberals who were our friends: “Oh, yes. You want us to cooperate with America? Look at the way she treats us. She brands us as less than human. The only language the white man understands is force, not justice or fair treatment. For- get about democracy. Arm.” And the militarists came into power and led Japan into war against us as the only way they saw to repay the wholly needless and gratuitous insult. The most powerful weapon the Com- munists have used against us in making such headway among Asiatics as they have made by nonmilitary means has been this which is today the single great- est weakness in Our armor: racial dis- crimination. Mr. Chairman, regardless of the dif- ficulties that we have in solving this prob- Jem on the home front, I believe there is no excuse for continuing in our immigra- tion laws a provision which is worth divi- sions of troops to the enemy, If we can- not succeed yet in providing positive jus- tice to all those of non-Caucasion races here in America, we can at least remove at one stroke this negative injustice to hundreds of millions in Asia whose at- titudes in the future can be of life and death importance to ourselves, especially to Americans fighting in Asia. Let the United States Senate act upon H. R. 199, the bill passed by this House a year and 8 half ago to grant a minimum immigra- tion quota to twelve or so countries in Asia still excluded, including Korea and Japan, so that no person is barred solely because of his race. Let the determining