1950 tremes to discredit minority members of this body? In that connection, I may say that the name of the minority leader was used. Was he called as a witness to deny the statement, or was he given per- mission to deny the statement? Did he have witnesses who were present when the statement was supposed to have been made? I understand that was not the case, Why is the Senator from Massachu- setts specifically named and a state- ment given of the number of meetings he attended, while nothing {is said about the number of meetings attended by Democratic members of the committee? Why does the majority go to the length of counting the number of the files read by the Senator from Massachusetts and the number of files read by the Senator from Iowa? Why do they cite the exact number of meetings attended by these two responsible Senators on the minor- ity side of the aisle? Why do the ma- jority members of the committee re- terate and emphasize by placing in italics an untruth about four commit- tees of the Republican Congress, at least about what the Appropriations Com- mittee of the Senate had done with re- spect to this question? Why was the report so baldly partisan that minority members of the subcommittee were not given an opportunity to see it, or to affix their signatures, or to decline to affix them? Mr. President, is this administration so fearful of its mistakes, resulting in the loss of half the world to communism, that it cannot bear a just exposure by the opposition party? Has vested interest in error become so set that the minority cannot function, and that the press cannot function as avenues of enlightenment any longer in America? Has this administration be- come so arrogant that it no longer tol- erates criticism? Has this admuinistra- tion gone so far down the road of one- party rule that it must abuse, vilify, and discredit any man who does not fol- low its party line? Is this the meaning of national unity in a time of crisis? Look at the report, Mr. President. It is intemperate and abusive. I believe it is the most intemperate and the most abusive report ever filed in the United States Senate. It pours out words to discredit Members of the Senate instead of developing the charges of communism in the Government. It quotes evidence in its favor and ignores evidence which might prove embarrassing. We have the spectacle revealed today by the junior Senator from Massachusetts, who for- tunately, had knowledge, and can, there- fore, speak upon the Senate floor with knowledge, that the committee left out of the report certain matters of vital interest to the people. Oh, yes, Mr. President, the report uses soft words, escape words, to shield those who have been careless with the national security. But it uses harsh words as to witnesses who testified about the questionable conduct of persons high in the State Department. The tactics represented by this re- port come dangerously close to emulat- CONGRESSIONAL RECORD—SENATE ing the Internal propaganda tricks of totalitarian states. Its intemperate language resembles that which we might expect from Fascists, like Goebbels, or from the Communist Vishinsky. Its at- tacks upon Senators, instead of inves- tigating charges, are the same turning upside down of the truth that enabled communism to make the absurd claim that the United States is the aggressor in Korea and that South Korea com- mitted an act of aggression upon North Korea Mr President, I ask again, and I shall continue to ask until I can find out, who wrote this report? Whose words are these strange words in the report? It is a strange document. It is alien and foreign to this body. It has all the ear- marks of dictatorship technique. The Senator from Maryland could not have written it, for I know him as an honest man, a man of sincerity and in- tegrity, and I cannot believe these words to be his words. The great mystery is, whose hand is behind the report, and how could the Senators who signed it have been misled. The profound irritation of the ad- ministration in this case indicates that the administration cannot bear criti- cism. Yet, criticism and questioning by the opposition party are, after all, the only safeguard which the people have to hold their Government to ac- count, Can it be that the investigation was an investigation to end all investi- gations? Can it be that the invective in the report which has shocked so many persons was other than intem- perate? Could it have been calculated to intimidate and to attempt to discour- age well-intended inquiries and criticism in any quarter? If that be so—and it is apparent from an analysis of the re- port—where is this administration lead- ing us? (In accordance with the order of the Senate, the following is printed at this point, from pages 1488 to 1523 of type- written transcript marked “Executive session, Senator Resolution 213, Wednes- day, June 28, 1950. United States Senate, Committee on Foreign Relations, sub- committee appointed under Senate Resolution 231,” Franklin A. Steinko, reporter.) My opinion is that a lot of it will be Just a waste of time Senator Grezrn Have we got answers to ali the questions? Mr. MorcaNn I think, Senator, that a great many of them we have the answers to. Yes- terday, for example, Senator Longs asked for certain reports, I believe, In connection with the case of John Service The Department of Justice has advised me that they do not have any such reports bearing those dates, and they are sending a letter up concerning the whole matter, which we will have later. So I obviously don’t have that. There arc some outstanding requests of the Department of State. There is an out- standing request of the Navy Department. There is, I believe, one outstanding request of the Department of Justice and perhaps another of the War Department There will be others, but a great many of them have been answered, and, of course, that is the material which I have here today. Senator Loncs., It seems to me that we ought to aleo get all the papers of the lovalty 10815 board in the Service case, and if the loyalty review board passed on it, we ought to get that. I also would like to jaave the oppor- tunity to question somebody from the State Department with reapect to the quality of Service's record before and after the Amé:~ asia case. It seems to me you have got to do that before you can even pass judgment on that case. I don't know whether we will be turned down or not. The Service case was not 1 of the 61, and we may not be allowed to see any of that stuff, but I think we cer. tainly ought to see it because we want to make a judgment on that matter. Senator Typinos. We will look into that Senator McMaHOoN I think that somebody would come up and testify as to his com- petency and conduct as a State Department employee. I would be rather disappointed if they wouldn't Senator Lonce I would, too. Senator Typ1nos. I think we will get that all right, but whether we will get the record or not is another thing I will have to ex- plore that before I commit myself. Mr Morcan Incidentally, for the record at this point, in connection with the Service case, Mr. Peurifoy called me to advise the committee in this session, in the event the matter of Service came up, that the press stories to the effect that the loyalty and se- curity board of the State Department has cleared Service are not accurate The board has not rendered a decision concerning Serv. ice and does not intend to dao so, according to Mr. Peurifoy, until the State Department has an opportunity to review our record in executive seasicn, if we make it available to them. Furthermore, he advised that he spe- cifically requested to be disqualified to pass on the Service case and that Under Secre- tury Webb had agrecd to review the decision of the loyalty board at such time as it is formally rendered Senator HicKENLoopPsER. Incidentally, there are a couple questions, based on informa- tion that I have received just before noon today, that I would like to ask Mr Service. Senator TypINGs Would you indicate what they are, Senator? Senator Hickentooper. I would prefer not to Senator TrpinGs, The only reason I asked was to see if we had covered any of the ground while you weren't here. Senator HicKENLoorEeR I have reviewed the questions that have been asked him, and this happens to be a question to ask him Senator TypINos. This is new matter, you mean? Senator HicKENLooprr. It involves other individuals Senator Typrncs. In the State Departe ment? Senator HickrNLooreR No. It involves other individuals with whom he may have had some contact. I have received some in- formation that he had contact with other individuals than those that our record dis- closes. Senator Typinas. What I mean is, would it be pertinent to our inquiry? Senator HICKENLOOPER. It would, indeed. Senator Typincs, How? Would it bear on his loyalty? Senator HickenLooper. Yes, sir, Senator Typines You don't care to tell us who they are” Senator HicKxNLoopger. Not at this time, because it {s purely rumor. I have just re- ceived the tnformation over the telephone and it happened just shortly before noon, This information may or may not be accu- rate at all, Senator Typtnas. Don't you think you ought to have a little more verification of that before we, busy o8 we oll are, go into things of that sort? I don't want to be cap- tious about it or anything of the sort. I am just asking for your opinion. You get
10816 g rumor, Is the man that gave the rumor willing to support it with any kind of rea- scnable fact which would make it worth while inquiring into? We can run rumors Gown from now on to the year 4006. Senator Loncr. More than that, Mr. Chatr- mun, we could run down perfectly legitimate questions from now to the year 4006 and still not exhaust all the questions that can be asked within the legitimate purview of Sen- ate Resolution 231. That is the defect of this whole set-up Senator Tyrprnas. I agree with you Senator Lopcze We could work ourselves tc the bone and we have worked hard on this committee, and still not scratch the surface of this subject. Senator Typtnes Let me say this to you My own thought is—and I want to be com- pletely fair to my colleagues in this matter— that under resolution 231, we were in- structed to inquire into the loyalty of State Department employees, past or present. In connection with that, we had to look into the loyalty of Mr Larsen and Mr. Service, who are two State Department employees that were involved in Amerasia I think that I was very liberal, in the absence of some of the other members of the commit- tee, in letting the whole purview of Amer- asia go in, as to whether the Department of Justice haa done a good job, whether they had been fixed, which wasn’t really what we sct out todo. We personally set out to keep it within the State Department purview, and I tried to frame the questions, as the examination and cross-examination will note It wens into all phases of Amerasia, even though at times it scemed to me we were getting pretty far away from loyalty or the employees in the State Department. We went into whether Mr Hitchcock did a good job or not. We went into whether the FBI did a good job or not We got pretty far away from the State Department in many of our phases. However, it was all done in good faith and in order to be broad and lib- eral and fair about it Now, likewise, in the Lattimore case, Mr. Lattimore never was an cmployee of the State Dopartment. Nevertheless, we had a great deal of testimony about Mr Lattimore and his books and writings and this, that and the other thing I have done my best and with some success. When nobody thought we were going to get the 81 loyalty files, I went down and got them. I didn't know what was in them Senator McMaHon Untampered with Senator Typtnecs. Untampered with After the charge was made that they had been tampered with, I went to the FBI and said I wanted a check made of this, that if they had been tampered with, I wanted to know it. Iam very hopeful that, having proceeded in that vein, we can more and more get back within tho purview of the resolution and that we can conclude this hearing, because it is goings to take a long while for us to make a study of this and see what report we are going to make. We probably will not agree on many phases of it. Quite frankly, I feel that we have done a good job. We have gone into it and we have all worked hard. This can be off the record. (Off the record ) Senator Lopcs. Let me make a little state- ment, Mr. Chairman. Senator Typinos. Certainly. Senator Lopae. I agree that this commit- tee has worked very hard. I think the staff has worked hard. I want to compliment them on the way they have worked. I know the Senators have put in a tremendous amount of time on this whole matter. How- ever, Senate Resolution 231 is, and I think I can quote it right here, “to investigate persons who are disloyal to the United States who are or have bheen"—-I underlined those three words, “or have been”—“employed by the Department of State.” CONGRESSIONAL RECORD—SENATE Now, when you go into that, there are a whole lot of questions that suggest them- selves to you that are without any restraint or construction at all squarely within that purview. I have just jotted down a few of them here that have been asked on the floor by Senators and that have been asked in the press, some of which would take months and years to go into. What State Department officials were re- sponsible for placing Hiss and Wadleigh in the State Department? Have we investigated what person or per- sons were primarily responsible for sponsor- ship of employment of sexual perverts in the State Department? Senator Typincs Do you want all this on the record? Senator Loncs. Yes. I think it would be a good thing for the men who wrote this Senate Resolution 231 to see, because some of them didn't understand what thoy were getting into Has an investigation been made with & view to determining whether those State Department officials who opposed United States recognition of Soviet Russia and who thereafter warned against any appeasement of the Soviet regime were in any way dis- criminated against or unfairly treated by the Department? Has an investigation been made of the procedures whereby Communists gain entry into the United States upon the basis of visas obtained through our consular service abroad? Has an investigation been made with ref- erence to the release of the Soviet spy named Gaik Badalovich Ovakimian on July 23, 1941? Has an investigation been made with ref- erence to the release of the Soviet spy named Mikhala Nickolavich Goran on March 22, 1941? Have questions been addressed to Adolf Berle with reference to his statement to the House Un-American Activities Committee that Alger Hiss belonged to the pro-Russian clique in the State Department? Who in the State Department was respon- sible for obtaining the services of Frederick Schuman and Owen Lattimore as speakers for the Department's indoctrination course for Foreign Service employees? I have had many people ask me that Has the subcommittee investigated the charge that a State Department security officer whose decision that 10 members of the Department be discharged was subse- quently reversed by higher authority? What State Department officials were re- sponsible for the advice given higher om- cials that the Soviet Government would allowfree elections in Poland, Czechoslovakia, Hungary, Rumania, Bulgaria and the other satellite countries? Has the subcommittee investigated the facts surrounding the case of Arthur Adams, an alleged Soviet atom spy, who was per- mitted to leave the United States in 1946? Now, any one of those questions would be good for 6, 7 or 8 months of the year. Senator Typtwos. That is right. Senator Lopcze Take the Lattimore case alone. We have got nothing in the record to show where Lattimore’s precise relation- ship with the State Department has been set forth by an official of the State Depart- ment, J don't think the State Department has answered, for the record, whether the relationship to the State Department which Senator McCartTHy applied to Lattimore was correct or not. Senator Tyrp1nes. How about the four let- ters from the Secretaries of State? Senator Lopez. Do you think that that completely clears up his relationship with the State Department? Senator Tyrpinas. I think os far as that phase of it is concerned, they said they didn't know him, that as far as they knew, he had no influence in molding foreign policy, JULY 24 Senator Lonar. They said that, but did they set forth his exact place on the Repara- tions Commission to Japan, his exact ap- pointment as lecturer? Senator Typ1nos. That has all been testi- fled to, that he was appointed at the request of Ed Pauley on the Presidential mission, not with the State Department. That is in the record. Senator Lopcg, All right, I will look it up again, Senator Typ1nes. I remember it. Senator Lopag, Let me ask you this: Has the subcommittee questioned all persons mentioned by Budenz as having had rela- tions with Lattimore? Senator Typinos. Yes. Senator Lopcz Have we all of them? Mr. Morcan. All persons? Senator Lopcr Yes. Mr Morcan. In what sense? Senator LoDcE. Have we had them in and questioned all the persons mentioned by Bu- denz as having had relations with Latti- more? Mr Morcan. Mr Budenz named in execu- tive session a great many contributors to Pacific Affairs, the publication with which Lattimore at one time was associated. Of course, we have not interviewed all of them. There were some 16, as I remember. Senator Typtnes Lattimore specifically an- swered each one of the charges that Budenz had made or that anybody had made. I re- member that in his testimony I don't recall it specifically, but I do know he took up one thing after another Senator Lopce We haven't questioned them all, I don’t think, Mr. Morris Lattimore hasn't been in since the second Budenz testimony. Senator Lopce Have we questioned those who have headed the China desk in the State Department to determine whether Lattimore gave advice on United States policy for China and whether this advice was acted upon? Have we questioned the United States Am- bassadors to China who were there during that period in order to get answers to those questions? Senator HicKeENLoopER In that connec- tion, may I say that I talked to them about 4 weeks ago I have been trying to locate their signatures so that I can present them. I talked to a Chinese representative here who told me that in discussing Chinese mat- ters with the State Department he had been on repeated occasions sent to Owen Latti- more from the Far East Section of the State Department They said, ‘Well, you see Lat- timore about that.” Senator Typines. Well, what of it? That doesn’t make him an employee of the State Department. Senator HICKENLOOPER. No, but it goes to the question of his influence. Senator Typrnos. We are not trying his influence. We are investigating whether State Department employees have been dis- loyal, and Lattimore is not a State Depart- ment employee. Senator Lopce I would like to just com- plete this; it wouldn’t take me very long. Senator Typ1nas. Excuse me. Senator Lopce. On the question of asking the Department of Justice whether they have had any new information respecting Latti- more since that date, I think it was March 24 that we went down and saw the summary of the file. Senator Typincs. By “new information,” do you mean dercgatory or general informa- tion? Senator Longe. I understand they were conducting a surveillance of them or an examination of them or a study into them. Mr Morris. As I understand it, they had 70 FEI men working on Lattimore subse- quent to that. enator Typines. Who told you that?
1950 Mr. Morezs. Well, I heard that from about four or five different sources. Senator Typinas. Name me one, s0 we can judge and measure the authenticity of what you heard. Mr. Morris. One of them was a man named Nelson Frank. . Senator Typincs. Who {s he? Mr. Morris. He is a man who used to work for the Navy. He is a newspaperman He is in New York. Apparently he ts recognized by the Bureau as something of an expert on Communist literature. He gets frequent calls from the FBI. Senator Tyrpinas. What are we trying to find out about Lattimore, Mr. Morris? Mr. Morris. I think the princtpal charge is he was the architect for our far-eastern policy. Senator Typrnas. How does what you told me, 70 men of the FBI looking into it, make him the architect of our far-eastern policy? Mr. Morris. I am sorry, I didn’t hear that question. Senator TypiIncs How could he be the formulator of policy if he wasn’t in the State Department? Mr. Morris. I can think of one thing. He was one of the principal consultants last October, when they had the conference Senator Lonck. The question I raised was very almple. On the question of asking the Department of Justice whether they had any new information since March 24, they can say, yes, we have and we don’t want to tell you or they can say no, we don’t have, or yes, we have. Benator Typrnos. I shall ask that ques- tion and put the letter in the record. I think it 1s a very proper question. Senator Lopce. They asked us all to come down and look at this summary. Senator Tyrnrnas. I think {t is a very proper question, Senator Lonce. It is just a question of bringing the thing up to date. Senator Typrnas That is right. Senator Lopcr. Now, at the hearing on April 25, Budenz stated that he would furnish the subcommittee with names of Commu- nists whom he knew to be in the State De- partment. Have we received that list? Senator Typrnos. Yes, I have got a4 letter from him in which he says he has been very busy and hasn't had time to get around to this yet, that sometime in the autumn he hopes to have time to devote some attention to this. Senator Lonce Budenz says that? Senator Typ1nos. Yes, Senator Lopar. Will that letter be in the record? Senator Typines. You will put it in the record. Senator Lona. I think it ought to be in the record. Senator Typines. I have got the letter somewhere, The reason I haven't brought it over here is that I didn't think of it, for one thing. Another thing is he says he wouldn't be able to do something until autumn. He sent s copy of it to each one. He says on the letter to me a copy to so and so and 80 and so. I think every member of the com- mittee got a copy of it. Senator HicKENLOoPER. I got a copy. Senator Typrnos. He says that on there. That is the reason I didn't bring it up. Senator Lopez. I think it ought to be in the record for the sake of completeness. Mr. Morgan. I have my copy to incorporate in the record. Senator Typrnas. You have got & copy. Put it in the record. That will take care of that. Senator Loncr. Have we contacted and in- vestigated all those whom Lattimore is sup- posed to have brought in to the Institute of Pacific Relations? If not, I think we ought to do something about that. Mr, Moraan That, Senator, is a bridge that I think we ought to cross right here. To CONGRESSIONAL RECORD—SENATE propose to undertake an investigation of that character, you might Just as well give up all hope, with the existing facilities, and you might as well get set for an investigation that will extend over 1 year at the very least, Senator Lonce. All right, now, I want to talk about that. I want to make my I'ttle speech about that I have asked all these questions, and I think the questions are ob- viously questions that fall within the purview of this Senate resolution. However, with the congressional committee machinery, we could sit for another year or 2 years and we still couldn't get to the bottom of all those questions In all the years I have been here, I have never been on a committee where people worked harder and where a more sin- cere effort was made. Senator Typinas, I have had to do 3 or 4 hours on the committee in addition. Senator Lodcr. You are the chairman of the Armed Services Committee and you have a lot of other things to do I have never been on any other committee where the members put in more time and worked harder. However, the nature of a congres- sional committee 1s such that the Senators haven't the time and, in most cases, haven't the expert background, and the tools which @ congressional committee has, which are the publicity and the furnishing of facts on which public opinion ts formed, are not the tools that you need to apprehend the existence of disloyalty in Government depart- ments. What you need there are detectives and secret work, which a congressional com- mittee does not have. S80 I think that if we sat from now until doomsday, this commit- tee, with the other things it has to do, which ‘we as Senators have got to do, which are just as important as this, could never get to the bottom of the question of who hired Alger Hiss or how about all these people that Lattt- more got into the Institute of Pacific Rela- tions. Therefore, at the proper time, I am going to renew my motion that a trained bi- partisan commission of experts be set up to go into this thing, under the seal of secrecy, with a definite requirement that no report be made until well after the election, taking this whole thing out of politics, getting to the bottom of it, and let the chips fall wheie they may. That is the system that has beer: tried in other countries and they have gotten a lot of results from it. I wanted to make that statement fully and frankly here, because I intend to make it in public later, and I don’t want to have you gentlemen learn my views in public for the first time. I want you to hear it here. Senator Typings. I think there is a great deal, Senator Lopgg, in what you say. I am not out of sympathy or in disagreement with any of the fundamentals you have expressed. Take my own situation first. In addition to what each other member of the committee has had to put tn on this, I have had to put in probably 2 hours extra each day because of the mail coming to me, and I have carried, you can imagine, a pretty heavy load here. Now, I think we have done a pretty thor- ough job. I don't say that we have explored every bay and inlet and river and rivulet or we haven't explored it. Iam not passing on that, What I would Ike to do 1s to take what we have got and present it to the Sen- ate and come to some recommendation that we might all agree upon for a further con- tinuance of this thing. Now, I can't see where anybody can be hurt on that score. My own conscience will be clear and my sense of the discharge of the duty will be clear, because I have worked like the devil on this case. Senator Lopcr. I don't understand what you say about a continuance. Senator Typmvos. I say, we will take the evidence that we have now and make any conclusion we want from it, either in agree- ment or three different versions or five dif- ferent versions, or any way we want to do 10817 it, and that incorporated in our general findings there be some provision and rec- ommendation for a further pursult of secu- rity under whatever mechanics we decide, either along your line or some other line. Senator Loner. Not necessarily by this same subcommittee? Senator Typings, We would be out. They would take it over and go ahead with it. I don't think we can do much more than we have done. I think !t is like a sculptor. He takes his clay and he gets it in general shape. Now we are down to where the refinements come in, and we haven't got the time to go into all these things. My opinion is that we ought to make our findings on what we have and make a recommendation, which I am sure will be honored, that there be further pursuit of this proposition. By that, I don’t mean this particular evidence I mean any- thing that is in the picture at all that has to do with better security for the country. Tam with it Senator Lopar Off the record. (Off the record ) Senator Typinas. I haven't talked this over with my colleagues, I will telk you that in good faith I haven’t talked it over with Senator Green or Senator McManon, but I have reached the conclusion that I want, above everything else, this country to be secure against the bad people in it, particu- larly in the present time While I have done the best I could do, and I think a pretty good job was done by all of us, in getting the es- sentials of what brought us into being before us for some consideration, I am not content to leave the matter go without further pur- sult by people who have the time and the effort and everything else that can be made to do the job Senator Green. I may say I am in entire sympathy with the general principles, but whether I would be for any particular plan will be another matter. I ought to be excused. I talked with my office and there are people who have been waiting for some time over there to see me. Sonator Typ1nas. I would like to get some expression from you, Senator Grasn. I would like to get this from you today. I would like to have Mr. Morgan complete this record with such other information as has been requested to be furnished us in writing. Then I would like to have all of this made available and have the committee make whatever findings it wants to make and ask for such other pursuit of it as is necessary. I have no objection. I don't care. I don't want to drop it. Senator Grezen. Somebody ought to make a tentative draft, That is the only possible way of getting at it. Senator Typrncs. I mean the committee ought to bring in its findings, We can say they are imperfect, if we want, or we can say that we have done the best we can Senator Green, My point is to get down to earth. Someone has got to make those find- ings or a draft 1n order that we may come to an agreement Senator Typinas. Make a motion, then, so we can get your point of view on paper. Senator Grezn, Well, I would suggest that the counsel for the committee make a draft report for this committee that we can dis- cuss, tn the first place. When you once have that draft report and have been over that, then we can discuss the findings. Mr. Moras. May I say, Senator, that the first basic request that I made in commenc- ing this investigation was for the books and records of Frederick Vanderbilt Field, inas- much ag there was evidence that his money was the heart of the Communist cell In the Institute of Pacific Relations I maintain that that was necessary. It was basically necessary to start that kind of an investi- gation. Senator Typtnas. There isn’t anything, Mr. Morris, that isn’t pertinent, and we can keep on asking for things, and there is no doubt
10818 in the world that would be a good thing to get, and you could ask for 5,000 different things, but we are pretty far away from loy- alty in the State Department when we get out in the Institute of Pacific Relations with our little force. We just haven't got it. Are you ready for a discussion? Senator HickenLooper. I want to make an observation on that. I think it would be an utterly futile thing to make a draft report at this time. I consider we haven't even scratched the surface. Senator Typ1ncs. How long do you think it would take us to do It? Senator HickenLoorgr. I don't know how long it will take us, but I would like to see us get into some of the ramifications of these witnesses as the only way that you can develop evidence upon which you can base any final conclusions, and I will have to op- pose such a motion at this time. Senator Green. It seems to me that we have done all that we need to do in connec- tion with the job that was imposed upon us. We have examined the case of everyone who has been accused, by name or by number corresponding to the name. Senator Lone. If the Senator will yield, we were not directed by the resolution to do that. Senator Green. No, but we have not sup- plied want ads in the paper to find additional ones. We have had plenty of publicity about this committes’s work, and we would have had other names suggested to us if these people who are constantly writing let- ters to us had names to offer. Senator HickenLoorer. We have 20 or 30 names that I think we ought to look into. Senator Green. I say, all that have been presented to the committee, I think, we have examined. Senator Tyrpincs. I think we ought to reach a decision here today. I think we have done an exceedingly hard lot of work. This committee has worked hard and turned up all the essential facts. We have got to ad- mit that there is a great fleld of endeavor here which we, as Cabot says, are not quali- fied to do. It would take us years, take much more money, take more investigators. Senator Green. The point was to see whether there were present any cases of dis- loyalty in the State Department, or former employees of the State Department now in other Government departments. I think we have examined every case that comes within those two categories, and I think that was our duty. We want to make a report and file it and go on with other committees to continue the job that is considered neces- sary. Senator Tyornes. Is there any further discussion? Senator HiIcKENLOoPER. Yes. Before we vote on this matter, I would like to suggest a “for instance.” Iam compiling a list right now, which I will have this afternoon and you can have tomorrow afternoon, a list of a substantial number of witnesses to whom the trails in this thing lead. Senator Green. Do they come under those two categories? Senator Hicken.Loorer. Yes, indeed—asso- clations and connections in the State De- partment. Senator Green. I think that ts going on a fishing expedition. A witness who may know of something in the State Department is one thing, but if you can give us the name ofanyone in the State Department on whom there are reasonable grounds for suspecting his disloyalty will be another thing. Senator HicKENLOOPER. For instance, I would like to make a request at this mo- ment, that Maj. Gen. C. A. Willoughby, As- sistant Chief of Staff in G-2, General Head- quarters in the Far Eastern Command, un- der General MacArthur, furnish a review of the sort in the Smedly case, with special reference to their American acsociations. CONGRESSIONAL RECORD—SENATE Senator Typinos. I think, Senator HICKEN- Looper, without taking issue with you, we could sit here and probably think of a thou- sand pertinent sidelights, and some of them would be more than sidelights, perhaps. Senator GREEN, Excuse me, I started to leave. I am afraid I will have to leave in the middle of this. Senator Typinas. Let's have a decision, Senator Green. ‘Your motion is pending. Are you ready for the question? Senator Green. I would like to have a vote on it. Senator Lopce. That is, to have the coun- se] prepare a report? Senator Typrncs. And submit it to us on the evidence up to date. Senator McManHon. That doesn’t commit us to anything except seeing a compendium of what we have got. Senator Typinas, You are going to have to do this sometime. You might as well walk up to it now. There never will be a point where you will be finished. Senator McMAnon. I personally, in voting for this motion, want it understood as mean- ing in my mind that we are going to have an orderly presentation of the work of the committee to date. When I take a look at that report—I shouldn't call it a report; I should call it a memorandum of work that has been done—it would be very helpful to me in charting what I think should be the future course of the committee. Senator GREEN. That is my suggestion. Senator Longe. Is it your thought that there should be a draft of a final report? Senator Green. To date. Senator Lonce. I don't like that word “fi- nal.” I don't think the public will take it as final, Senator Green. A draft to date of the work we have accomplished is what I would like to see. Can we decide we ought to fill in this gap or that gap or decide we ought to do this or follow up something else, so that we can have a definite statement of what we have done up to date? Senator Typinas. My point Js this, that we ought to take our hearings as of today, and we ought to have a report drafted for them to see whether we can agree to turn this over to the full committee, with our recommendations about its pursuit of this whole field of operations thereon. Senator GREEN. We may make a great many changes in the report. Senator Typinas. We wouldn’t all agree. We will want this changed and that changed, but we will have to start sometime. I im- agine the report will be pretty long. We have got a hundred and some people to deal with. Senator Lopcr. Let me say this. I think that I have some basic assumptions about this whole situation, which will not meke it possible for me to sign this report. Senator Typincs. I would suggest as an alternative that each man draw his own re- port and submit it and see where we can meet. Senator Lopez. I have no objection to the staff working up any kind of a document that they desire, but I want to make it clear that as far as I am concerned, I don’t think I will be able to sign it, because my basic assumptions about this whole proceeding are different. Senator Typinas. That is all right. I am willing to start on my report. What I would like to do is get it here and tell you what I am going to say, and if you don't agree with it, make one of your own, but I want a report on the work, I think our work is pretty well concluded, if you want my opinion, Senator Hickentoorper. I don’t think it has even started, Mr. Chairman. Senator Trprnos. You disagree with me? Senator HIcKENLOoPER. I disagree with you. JULY 24 Senator Typrncs. But I disagree with you, so there we are. Mr. Morris. Senator, may I mention just one case here? Senator Typrnes. Mr. Morris, we mention cases from now until doomsday. Mr. Morers. It is in the record, Senator. May I just finish? Mr. Trpines. Of course, you are not a mem- ber of the committee. When we want coun- sel to speak, we will ask them, but I am going to let you speak. However, that is a matter for the committee to decide. Senator Longe. I would lke to hear what he has to say. Mr. Morris. There is a case of @ man named Theodore Geiger. He has been an employee of the State Department. He is now one of Paul Hoffman’s top assistants. He is doing work that is quasi-State Depart- ment in character. I have gone and gotten some witnesses together who will testify that he was a member of the same Communist Party unit as they were, and I think that we would be delinquent if in the face of this evidence that is now on the record—— Senator Tyrptnes. Why didn’t you tell us this? Why did you wait until this hour to tell me? Mr. Morris. I am not waiting, Senator. One day Senator GrrEN made me a witness and I put {t all in the record. Senator Typinas. You haven't told me about it. This is the first I have heard about it. Mr. Morris. Senator, I assume that you are aware of everything in the record. Senator Typines. No. There are some things in the record I haven’t been able to read. M-. Morris. Certainly Mr. Morgan knows it. I have mentioned it several times to him. Senator Green. That wouldn’t have any- thin; to do with my motion. Senator Trpincs. Turn it over to the FBI or do something else with it. I would like to get a decision here. We don’t want to waste this afternoon. Senator Green has recommended that the council prepare a report which will review the work that we have done, and that it may be used as a basis for committee action or individval action upon the matters we have already had under examination. Is that substantially {t? Senator GREEN. That is substantially it, yes. Senator Typtnos. Do you want to add to it? Sanator Green. No. I accepted that as a basis for conclusions which we may later reach. Senator McManon. Before voting, I would like to say that I think it is a profitable thing to do, because we have been in exist- ence now for how long, Mr. Chairman? Senator Typincs. We are going on our fifth month. Senator McManon. Fifth mcnth. I would like to see a review, and in a form that I can very easily digest, of what we have already adduced in the record and, measuring that against our resolution of instructions, to see exactly where, in my mind, we are, and it is for that purposo of being helpful to me that I vote aye on the motion, Senator Trp1nes. All those in favor will signify by saylng “aye.” (Chorus of “ayes.”) Senator Typinas. Opposed? (Chorus of ‘‘noes.’’) Senator Typ1nes. All thoee in favor will signify by raising their hands. (A show of hands.) Senator McMawon. Before we finally take & record vote, can I ask the basis of the ob- jection for getting counsel to submit a brief to us? Perhaps I don't understand. Senator Lopat. I have many basic objec- tions. Senator McManon. It eeems to me like a sensible thing to make use of our counsel to give us a brief of what we have already done. can
1950 Senator Loner. In the firet place, there 1s the use of the word, “conclusion,” or, “con- cluding,” which Senator Green inserted into his motion. Senator Garzw ig a man who understands the language and uses it very carefully, as I have had occasion to learn many t'mes from my associations with him. The !dea of that word, “conclusion,” 1s flatly at variance with my idea that this thing is by no means concluded and will not be concluded until we have a trained bipartisan commission that will make an independent investigation. That is one thing. Secondly, my whole basic assumption about this whole situation is so different that I think I would be misconstruing my own position if I were to vote for this particular motion. Senator GREEN. We must make some sort of a report, must we not? Senator Lopez. My position ts that the thing we ought to do is to report out a reso- lution, setting up a trained bipartisan com- mission of experts to make an independent investigation. Senator Green. That may be a conclusion, but we must make a report of what we have done, surely. Senator Typines. Casot, what will we do with what we have already done; take it down and turn it over to them without reaching any conclusions? Senator Green. Conclusions are a separate matter. It doesn’t have to be a conclusion, not this report. It is just for a basis. Senator Loner. A basis for conclusions. Senator Green. In other words, the con- clusion might be that we can't reach any definite conclusion. That might be the conclusion we will reach. Senator Lopes. I think you have got the votes to carry the motion. Senator Typinas. I don’t want to carry any motion by sheer force. Senator McManow. I tried to frame what I interpret it to be, a working paper to give me the benefit of what has already been done in this committee period. Now, what I do with the working memorandum when I get it and read it is a horse of another color, But I can’t see why counsel can’t prepare a working memorandum and sub- mit it to us without any vote at all. Iam quite willing to vote. Senator Grexn. I’ve got to go. It is al- ways 6 half hour or another hour or 2 hours. Senator Typines. I know, but this may gave you two or three more committee meetings, where we would go over the same ground again. Let me suggest that counsel prepare a ten- tative report to submit to the members of this committee, that each man prepare, if he wishes,’buch report as he wants and such recommendations as he wants, and that we pool those here and see if we can reach col- lectively or individually a basis for bringing our present hearings to a close and passing it on with recommendations for further ac- tion, Senator Green. If it would suit Senator Lovax better, I would just call it an interim report. Senator Loner. You see, I start in with this basic assumption. Senator Typinas. Would you object to an interim report? Senator Lopcx. I don’t object to your telling Mr. Morgan as counsel to prepare & summary of the testimony to date if you want to, although to me it wouldn't be a document of much significance. Senator Typinas. What I wanted to do was to find out whether we could tell the country what we found out up to now and then go on from there in any other fleid we want, Senator Loncr. Let me answer you this way. My basic assumptiog is that in 1045, -at the end of VE-day, those who were run- ning this Government utterly failed to sense CONGRESSIONAL RECORD—SENATE the new realities of the eltuation; that that showed itself in the fact that no reason was ever given for maintaining our Armed Forces; so that a clamor developed to not just de- mobilize, but to disintegrate our Armed Forces to a point where we had no Influence left. In the case of the State Department, that revealed itself in this carrying into the service of the State Department 4,000 people from these temporary war agencies, with no screening whatever, many of whom were totally unfit to be in the Government. Senator Green. That all ought to be in the report Senator Typines. It is in the report al- ready. Senator Lopcx. That the administration in 1945 totally failed to sense the realities of the world situation? Senator Tyrpinas. Yes, sir, it is all in there. nepntor Lopcg. I will be interested to read that. Senator Typinas. It is all in there. have got a complete explanation of tt. Senator Lopce. I would like to see that re- port before I vote. Senator Green. Certainly. Senator Lopcg. If it hag got that in there, it will be interesting. Senator Typtnas. There isn’t anything that isn’t completely open and aboveboard. Senator McManon. I deny that it is in the record, that at the end of the war the ad- ministration totally failed—I deny that that is in the record. Senator Lopag. I thought you would. Senator McManon, I, incidentally, deny the truth of it. Senator Lopcs. I thought you would. Senator McMaHon. l you want to say it was the administration, say it was the American people, all the American people, everybody in the world, but that is im- material to this record. Senator Longs, Senator, if the leaders of this country had said to the American peo- ple that we must maintain our Armed Forces of a certain size and bear a certain relation to the other armed forces in the world, the clamor to demobilize would never have arisen. It was the lack of rea) leadership. The reason we are in such trouble today is because of that. Senator Typinas. My dear friend, we have got a proposition before us whereby we have been working going on our fifth month. We have assembled a vast amount of evidence about matters that are pertinent to this inquiry and upon which the public ought to be informed. The suggestion before us is that counsel prepare a report on the evidence we have taken up to now. It doesn’t neces- sarily mean we have to quit there or stop there. We can do whatever we please. But I would like to make a report on what we have done up to now, with recommendations flowing from that about what should be done in the future. Now, could there be any objection to that? Senator Lopes. I understand that the text has already been drafted of this report; is that right? Senator Typinas. I have asked Mr. Morgan to keep his text as current as he could. He has got a lot of it‘done. I haven't read it. Senator Loner. Why do you need the motion if he is writing it? Senator TyprNnos. Senator HICKENLOOPER got one current, and you have got one current. Now let me get this straight. All you have got before you ts this: Here 1s our evidence. Senator Green, What are you arguing for? Senator Typrvas. Will you let me make this statement? Benator Guxen. Yes; certainly. Senator Tyrmwas. Here ts our evidence. Why shouldn't we make a finding on the evidence we have got up to now, plus such recommendations aa we want to make based on the evidence? We 10819 Senator Geten. I want to get the statement of evidence before I make any findings. Senator Tyoincs. I am not talking about findings. Senator Green, You just said “findings.” Senator Typrnos. I said we ought to make @ report based on the evidence up to now. Senator Green. You said “findings.” Senator Trpinas. Well, do you want to vote on it? Senator McManon. Does that include the 81 down at the White House? Senator Tyrpinas. It looks to be like we are just afraid. What are we afraid about? Senator Lonce. Iam not afraid to make my report. Senator McMaHon, Nor I mine. Senator Typines, All those in favor of the Green resolution will signify by saying “aye.” Senator Green. Aye. Senator McMAnon. Aye. Senator Typrnes. All those opposed signify by saying “no.” Senator Lopar. No. Senator Hicken.Loorer. No. Senator Typincs. Two votes no and two the other way. + Go ahead, Mr. Morgan, and prepare your report. The meeting its in recess. Senator McManon. J never saw a committee where the committee did not vote unani- mously to have a report of its work brought to its attention. Senator Lovcr. That shows how controver- sial this subject is. Mr. McMAHON. Mr. President, as the Senator from Michigan refused to yield to me at one point in his remarks— and I do not complain about that—in order that I might make a comment—— Mr. FERGUSON. I shall be glad to answer any questions which the Senator wishes to ask Mr. McMAHON. In order that I might make a comment at the time about my reaction to a statement which the Senator made in regard to Hiss. The reaction of the Senator from Con- necticut had to do with the statement of the Senator from Michigan that the facts in the Hiss case were not known to the American people. I suppose more millions or hundreds of millions of words were written, and properly so, regard- ing the Hiss case than have been written with reference to any other case in our time. So if the Senator from Michigan chose to describe my reaction as laugh- ter, he was welcome to do s0. I only say that it was ironic in nature, because I am sure everyone knows the facts with regard to Alger Hiss, I need make no protest of my own concerning my reac- tion to the actions of Mr. Alger Hiss. I am sure my colleagues need no such protestations from me as to the correct- ness of my attitude on communism and its adherents. Something was said by the Senator from Michigan with reference to propa- ganda tactics which resembled the ac- tivities of Mr. Goebbels. If I were the Senator from Michigan, in view of the nature of the charges made against the State Department and the campaign which was carried on, I do not think I should compare anyone’s activities with those of the great and desp-cable propa- gandist of the Hitler regime. I do not charge that there were such tactics used in this affair, but I think an interesting comparison might be had between the tactics of Mr. Goebbels and the tactics
10820 which were employed in this campaign of vilification against the State De- partment. I should like to ask the Senator from Michigan this question: Does he sup- port the charge of the Senator from Wisconsin |Mr. McCartHy] that there are 205 card-carrying Communists in the Department of State known to Mr. Acheson to be card-carrying Commu- nists? Mr. FERGUSON. Mr. President, the answer is that the Senator from Michi- gan has no knowledge on that subject except what he finds in the report of the subcominittee and what he found at the time in the Appropriations Committee. He certainly would not take that as be- ing a fact until he could obtain evidence. Mr. McMAHON. At any rate, the charge made by the junior Senator from Wisconsin that there were 205 card-car- rying Communists in the Department of State known to Mr. Acheson to be card- carrying Communists has not been proved, has it? Mr. FERGUEON. I would say that I find nothing in the report that proves the charge. Mr. McMAHON. Does the Senator know of any evidence within his knowl- edge, or within the Knowledge of any other person, that there are in the De- partment of State any card-carrying Communists known to Mr. Acheson to be such? Mr. FERGUSON. The Senator has no such facts, or he would state them on the floor. Mr. McMAHON. Does the Senator from Michigan have any Knowledge, or does he know anyone who has any knowl- edge, concerning any subversive activity punishable under our criminal statutes which has not been punished? Mr. FERGUSON. I cannot answer that question, for this reason: I have seen parts of the matter to which I re- ferred in the Marshall memorandum of a report from the FBI on file in the State Department. It has been 3 years ago, and I have no knowledge as to whether any of the persons involved are now in the State Department. It does refer to the preliminary report of the FBI on Scviet espionage activities in the United States, which involves a large number of State Department employees, some of them in high official positions. Mr. McMAHON. The Senator knows, does he not, that the FBI is in charge of investigating subversive activities in the Government? Mr. FERGUSON. Ido. Mr. MCMAHON. Iam sure the Sena- tor shares the respect of the citizens of the United States and our colleagues in the Senate for Mr. Hoover, the head of the organization. Mr, FERGUSON. I have the highest respect for Mr. Hoover. Mr. McMAHON. The Senator knows, does he not, that Mr. Hoover performs his duties as they are laid down for him by statute? Mr. FERGUSON. Yes. Mr. McMAHON. The Senator knows, does he not, that if there were any sub- versive activities, or any person was guilty of violation of a statute of the CONGRESSIONAL RECORD—SENATE United States, Mr. Hoover would make that fact known to the prosecuting au- thorities of this Government? Mr. FERGUSON. I cannot answer that because Mr. Hoover has said in com- mittee that there are 22 subjects which he cannot even investigate without spe- cific orders from the Attorney General, and that so far as espionage is concerned, if it involves any outside agencies, he must consult the Secretary of State. Mr. Hoover indicated without any doubt that he has allowed men to escape be- cause he could not prosecute them by orders of the United States Eecretary of State. Mr. McMAHON. I would be obliged to the Senator from Michigan for a specific reference to any such testimony. Mr. FERGUSON. It is in the testi- mony before the Committee on Appro- priations. Mr. McMAHON. In the meantime I intend to make some remarks on this subject. I would suggest that the Sen- ator from Ohio [Mr. Tarr] resume his seat for a few minutes. Mr. TAFT. Mr. President, will the Senator yield? Mr. McMAHON. I decline to yield at the moment. I should like to call the Senate’s attention to the fact that the Department of Justice has a very ad- mirable record with reference to prose- cuting persons who have violated the laws of the United States. They have a particularly good record, I think, with regard to cases which have been in- vestigated and made against persons who would subvert the United States. It was not the Senator from Michigan {Mr. Fercuson], the Senator from Ohio {Mr. Tart], the Senator from South Da- kota (Mr. MuwpT], or any other Senator who prosecuted Alger Hiss and brought him to the doors of the penitentiary. It was the Department of Justice. It was not any Senator or Member of the House of Representatives who brought Judith Coplon to justice. It was not the Sena- tor from Michigan, great prosecutor though he may be. who carried on the prosecution against the 11 Communists - in New York. It was not the Senator from Ohio or the junior Senator from Wisconsin {[Mr. McCartny], or the Sen- ator from Michigan, who has been in the process of taking care of Harry Bridges. It has not been the Senator from Mich- igan, who referred to the Marzani case, who prosecuted that case. It has not been any Member of this body who has prosecuted the persons who refused to answer pertinent questions regarding their communistic affiliations, and who have been sent to jail. If Iam not mis- taken, some 10 or 15 of them were sent to jail. Mr. President, from one end of the country to the other, wherever evidence has been developed as to a violation of the criminal laws of our country, cases based on that evidence have been skill- fully, efficiently, and diligently prose- cuted. If any Senator or anyone else in the United States has evidence of sub- version against the Government, if he will take the evidence to the FBI, that great organization will investigate the evidence, will present it to the prose- JULY 24 cuting attorneys, the prosecutors will present the evidence in court, and if the accused person is guilty he will be found guilty and sent to jail. Mr. President, I have sent to the Jus- tice Department for a complete list of prosecutions during the past 3 or 4 years of persons who have tried to infiltrate the Government of the United States. Of course the Soviet is trying to in- filtrate the Government. That is a part of their fifth-column activities. That is the way they work. No one is more cognizant of that fact than is the Sena- tor from Connecticut. Mr. President, it wos Harry Truman who sensed this thing in 1947. It was under his direc- tion, and not under the direction of Members of either House, who drew up the program to ferret out the Commu- nists. That program has cost probably ten or twelve million dollars. The Presi- dent waited 5 months during the Eight- ieth Congress for funds with which to start the program. Mr. President, no Member of this body has been more aware of the character of the struggle in which we are engaged in the world today than has the Senator from Con- necticut. No one on this side of the aisle or on the other side of the aisle has stood up morc often to point out the threat that Stalin and his associates hold for this great democracy than has the Senator from Connecticut. How- ever, I have not been satisfied with reci- tations of the threat. The Senator from Connecticut has specified a program to meet it. Those who are now shouting the loudest about communism would leave the floor of the Senate in 1947 because they were not interested in hear- ing the subject discussed. I know, Mr. President, that one way not to conduct ourselves is to destroy rights which are given to the individual citizen under our Bill of Rights. When Harry Truman was faced with this pro- gram, what did he do? He established so-called loyalty boards. Of whom were they composed? They were composed of American citizens. I see before me the senior Senator from New Hampshire (Mr. Brivces}, who in a meeting down- stairs only a few months ago testified fully as to the integrity, ability, and patriotism of the chairman of the Loy- alty Board of the Department of State, Gen. Conrad Snov, Our report contains the names of the other American citi- zens who heard the charges which were leveled against employees of the State Department. In the American way they gave both sides a chance to be heard. They could have acted in another way. When an anonymous tip came to them, or an anonymous informant said to them that such and such a person was not what he should be, they could have let the accusation suffice and cut off the head of the accused. If they had done that we would have created the very thing which we in America hold precious and God-given, and we would have cre- ated our own totalitarian-type of pro- ceeding. That is what we refused to do, and we ought to refuse to do it, because when we adopt the practice of accepting accusations without proof, when we do away with hearings, when we do away with giving people a chance to protect
1950 their names, then the Kremlin will have won one of its greatest victories. Mr. President, I shall probably speak again at greater length in the future about the record of the Department of Justice and of the present administra- tion, specifically with regard to those who have been prosecuted and punished. I shall also speak at grcater length con- cerning the responsibility of this body in the matter now being discussed. Mr. TAFT obtained the floor. Mr. FERGUSON. Mr. President, will the Senator yield? Mr. TAFT Mr. President, I ask unanimous consent that I may yield to the Senator from Michigan, without los- ing the floor, for a brief statement to reply to the Senator from Connecticut The VICE PRESIDENT. Without ob- jection, the Senator from Michigan may proceed. Mr. FERGUSON. Mr. President, I de- sire to ask the Senator from Connecticut a question, but he declined to yield, and I shall refer to the matter in my own time I desire to refer to the record of an address I made before the Michigan Commercial Secretaries meeting here in Washington, April 26, 1948, in relation to the prosecution of the 11 Communists I also should like to put into the Recorp a matter that is now in the Appendix, under date of May 5, 1048, relating to what I said about the prosecution of the 11 Communists, being an excerpt from my remarks on that occasion. The VICE PRESIDENT. Is there ob- jection? There being no objection, the matter was ordered to be printed in the Recorp, as follows: Another thing in which you are greatly interested, I am sure, is communism in America Why are you concerned with it? It is not because you expect that Communists will tuke over the Government and we will adopt communism as our form of government. We do feel, however, that Communist mem- bers or fellow travelers, working in our policymaking departments, affect our Gov- ernment policies and by sabotage may weak- en our Government and affect our national lives. If we do get into a war with the Sovict Union, then we might expect real and serious trouble through Communists in key positions in American industry and government. The Nazi fifth column was composed mostly of aliens and people of one national- ity. This is not true of the Communists in this country. Many of them are citizens, they are of all nationalities, and often Ameri. can-born. That is why we have more to fear from them than we did from the bund. Communism is not a political party. Attorney General Francis Biddle on May 28, 1942, made a finding in the Harry Bridges case that the Communist Party of the United States of America, from the time of its in- ception in 1919 to the present time, is “an organization which believes in, advises, advo. cates, and advances the overthrow by force and violence of the Government of the United States.” We can assume that the Attorney General had information in the files of the Depart- ment of Justice from which he could make auch a finding. He was a lawyer and had been a Federal judge. Therefore, it is to be presumed that he was drawing a conclusion from facta. CONGRESSIONAL RECORD—SENATE If Mr, Biddle’s findings were true, it would appear we have a Federal law since 1940, pro- hibits communism in America. Section 10, title 18, of the Criminal Code provides it shall be unlawful for any per- son— “(1) To knowingly or willfully advocate, abet, advise, or teach the duty, necessity, desirability, or propriety of overthrowing or destroying any government in the United States by force or violence, or by the assassi- nation of any officer of any such govern- ment, * * * (3) To organize or help to organize any society, group, or assembly of persons who teach, advocate, or encourage the overthrow or destruction of any government in the United States by force or violence; or to bo or become a member of, or affiliate with, any such society, group, or assembly of persons, knowing the purposes thereof.” Let us assume that the facts Attorney General Biddle had are now in the Attorney General's files I suggest a test case against the National Secretariat, which consists of 2 members, the 12 members of the National Executive Board, and the 60 members of the National Committee of the Communist Party of the United States. If such a case were successful, it would have the effect of (a) making the Commu- nist Party in America illegal; (b) it would destroy many of the Communist-front or- ganizations which plague us; (¢c) those who claim to have innocently joined stich an or- ganization would actually see the red flag; (d) it would sertously affect the raising of money in this country by the Communist Party; (e) it would have the effect of fore- warning all in America that if they know- ingly join, they too, were violating the United States law and could be criminally prosecuted Here we have had a law since 1940, we have had evidence in the files of the At- torney General's office since 1942, Why has no action been taken by the Attorney Gen- eral? Isn't it time for action rather than just for the collection of evidence? Mr. FERGUSON. Mr. President, the fenator from Connecticut is very fa- miliar with the fact that legislators can- not prosecute. But I remember well that I was at another time asked the identical question which was propounded this morning, namely, whether I know of any Communists in the State De- partment. When we were conducting the hearings on William Remington, whom I previously identified as being under indictment for perjury in having denied to a grand jury that he was or h. 1 been a Communist, I was publicly challenged by Mr. Tom Clark, then the Attorney General of the United States: Name one Communist in the Government of the United States, Mr. President, I could not name one. 1 said that if I had the files of the FBI I could in my opinion name one, but, of ' course, no one can get the FBI files. Mr. Clark defied the committee, or any of us, to name one, but at the very mo- ment when he asked that question he had all the evidence, or practically all of it, on Judith Coplin in his own De- partment, Judith Coplon, who was then taking secret reports of the FBI on es- pionage, and giving them to Gubitchev, a Russian agent. Yet he asked the com- mittee the very same question, “Can you name one?” as if the people of the United States would not be familiar with that kind of a tactic, 10821 The Senator from Connecticut has said he has not any doubt in his mind that Communist Russia is trying to penetrate the United States Government for information. I do not believe there is anyone who does not think they are trying to penetrate it. What I want to know is, and what the committee was delegated to find out, was, how far they had penetrated it in the past. VISIT OF JAPANESE DELEGATION THE UNITED STATES Mr. SMITH of New Jersey. Mr. Pres- ident will the Senator from Ohio yield to me so that I may make a brief an- nouncement of a visit to the Senate of r Japanese delegation now in the United States? Mr. TAFT. Mr. President, I ask unan- imous consent that I may, without losing the floor, yield to the Senator from New Jerscy for the purpose of making an a;nouncement. The VICE PRESIDENT. Without ob- Jection, it is so ordered. Mr, SMITH of New Jersey. Mr. Presi- dent, it gives me great pleasure to call the attention of the Senate to a most unusual and important opportunity which we in Washington will have the latter part of this week. The largest and most representative group of Japanese leaders of govern- ment, industry, finance, and labor to leave that country since the war will be arriving here on Thursday, July 27; and it has been arranged that we will have the privilege of receiving them in this Chamber on Friday, July 28. The party of over 50 persons in- cludes 6 members of the Japanese Diet, officially representing the 4 principal parties, headed by the personal repre- sentative of the prime minister. There are also seven governors of prefectures, the heads of prefectural assemblies, city councils, and some of the largest indus- trial and financia] organizations in the country, as well as representatives of important labor unions, I feel particularly impressed and deeply moved by the fact that among the members of this delegation are the mayors of Hiroshima and Nagasaki, as well as the governors of the Hiroshima and Nagasaki prefectures, and the re- spective presidents of the city councils of these two cities. It is especially significant that these representatives of the two cities which were the victims of the atomic bombs in the last war are by this trip evidencing their good will and friendliness toward the people of the United States. These guests of ours are the democratic leaders of millions of Japanese, whose re- action to current developments in Korea, whose understanding of our aims and ob- jectives in the world, and especially in the Far East, and whose continued loyalty to the fundamental freedoms for which our men are fighting alongside other United Nations forces, constitute a vital security factor in our whole position on the other side of the Pacific. The members of a Senate Foreign Re- lations subcommittee have just been con- sidering a major expansion program for our information services in an effort to TO
10822 reach more effectively and infiuence the minds of millions all over the world. Members on both sides of the aisle have voiced the need for a moral mobiliza- tion, a Marshall plan of ideas, a voice of America which is really strong enough ta win the battle for the minds and hearts of men. We are spending many thou- sands of dollars a year for that purpose in Japan alone. But here in this Cham- ber this week we are going to have a chance to do first hand what can never be done so effectively over 5,000 miles of ocean. These men can take back to the wide cross section of Japan they repre- sent the conviction and impression of what we are striving to maintain and pre- serve in the world. This delegation left Japan 6 weeks ago with the support and approval of Gen- eral MacArthur and SCAP to attend a special industrial conference at the Moral Re-Armament World Assembly in Caux, Switzerland. They took part with 1,600 delegates from 47 nations. The Japanese raised the money to pay for their trip through the organizations they represent, supplemented by volun- tary contributions from this country. Since leaving Caux 3 weeks ago this group has been seen and honored by government leaders in the principal cap- itals of western Europe, and thus began to take their part again in the demo- cratic family of nations. They have been welcomed by the President of Switzer- land, by Chancelor Adenauer, and High Commissioner McCloy in Germany, and at official receptions by members of the German Cabinet and by the Upper and Lower Houses of the Bonn Parliament. Some of the party flew into Berlin at the invitation of the mayor, and were also received by tlhe mayors of Ham- burg, Bremen, Essen, and Cologne. Catholic members of the delegation had a special audience with the Pope in Rome. In Paris they were officially greeted by the Foreign Office at the Quai d’Orsay and by members of the French Cabinet. After flying across the Channel, they were met by the Lord Mayor of London at Mansion House, received in both Houses of Parliament, and welcomed at Oxford by the head of the university. Yesterday—Sunday—they arrived in New York by special plane, and I have been glad to learn that Mayor O’Dwyer, Ambassador Austin at the United Na- tions, and other officials are arranging to give them a full-hearted welcome to this country. The group will fly to Washington on Thursday, the 27th, and will be here until Tuesday, August 1. The Vice Presi- dent has arranged to receive the group in the Senate at 12:15 on Friday, July 28. They will go from here to a similar reception in the House of Representa- tives. Mr. President, the visit of this group of distinguished Japanese leaders to the United States at this critical time is so significant that I feel we should espe- cially honor them here on the floor of the Senate. It is my purpose, therefore, at the opening of the session on Friday, July 28, to ask unanimous consent that members of the group who belong to the Japanese Diet be invited to the floor CONGRESSIONAL RECORD—SENATE while a word of welcome is given to them by Members of the Senate, and that im- mediately thereafter the Senate take a recess of 15 minutes in order that the entire delegation may be brought to the floor and be introduced to the Vice Pres- ident and the Members of the Senate who may be present. I hope that as many Senators as pos- sible will arrange to be present at that time, realizing the opportunity to meet these distinguished visitors, as well as to express to them the warmth of our friendship and our encouragement in the search which has brought them so far to observe our democratic processes at work. Perhaps there is no more effective way for us to support our troops in South Korea than to cement the friendship of these Far Eastern leaders by our per- sonal welcome to them here in this Chamber on Friday, remembering that the present struggle is ideological as well as military. The United States needs friends today as never before in our history, especially in the Far East. When Mr. Osaki was here he recalled to us that America's God-given destiny was to unite the world. As we extend our friendship and faith to these Japanese visitors, we can enlist them with us in that supreme task. Mr. President, at this point, at the close of my remarks, I ask unanimous consent that there be inserted in the Recorp the names and identification of all these welcome visitors. The VICE PRESIDENT, Is there objection? There being no objection, the list was ordered to be printed in the REcorp, as follows: JAPANESE DELEGATION TO UNITED STATES ARRIVING IN WASHINGTON JULY 27, 1950 Bunzo Akama, governor of Osaka. Sachio Kishida, governor of Hyogo. Mrs. Kishida. Tsunei Kusonose, governor of Hiroshima. Sojiro Sugiyama, governor of Nagasakl, Mrs. Sugiyama. Torao Hyashi, governor of Nagano. Iwakichi Hattori, governor of Shiga. Aoki Osamu, governor of Mie Prefecture. Chojiro Kuriyama, Member, House of Rep- resentatives of Diet (Liberal) (personal representative, Prime Minister Yoshida). Tokuyasu Fukuda, Member, House of Rep- resentatives of Diet (Liberal), Kinjiro Kawashima, Member, House of Representatives o. Diet (Socialist). Yasuchiruv Nakasone, Member, House of Representatives of Diet (Democrat). Tokutaro Kitamura, Member, House of Representatives of Diet (Democrat). Shinichi Hayakawa, Member, House of Councillors of Diet (Independent). Mrs. Hayakawa, Kiyomaru Kamel, president. Osaka Pree fectural Assembly. Heichiro Yamada, president, Hyogo Pre- fectural Assembly. Torazo Inouye, vice president, Hyogo Pre- fectural Assembly. Rokuro Yamada, member, Hyogo Prefec- tural Assembly. Shinso Hamai, mayor of Hiroshima. Hiroshi Ohashi, mayor of Nagasaki, Mrs. Ohashi. Chujiro Haraguchi, mayor of Kobe, Kuzaemon Matsuhashi, mayor of Nagano. Selicht Kawamoto, president, Hiroshima City Council. JULY 24 Shoshich! Mochizuk!, president, Nagasaki City Council. Eiji Suzuki, Police. Mrs. Suzuki. Koichiro Murata, chairman, Shiga Prefec- tural Board of Education. Taizo Ishizaka, president, Tokyo Shibaura Electric Co. (largest in Japan). Naokazu Ishiguro, chief, Public Relations Department, Tokyo Shibaura Electric Co. Ko Suzuki, president, Osaka Bank, Mrs. Suzuki, Toraichi Ijuin, managing director, Tokyo Bank. Soichiro Rayon Co. Gen Hirose, president, Japan Life Insur- ance Co. Harue Yamane, president, Taisho Marine and Fire Insurance Co. Yuichi Yuasa, president, Yuasa Battery Co. c Yoshito Kojima, manager, Nippon Express oO. Kiyoshi Ichimura, president, Sanai De- partment Store. Yasutane Sohma, president, Koshin Co. Mrs, Sohma, Yoenzo Kobayashi, managing director, Kelhanshin Express Railway Co, Mrs. Kobayashi. Shoichi Enami, managing director, Kobe Management Association. Daiji Ioka, chairman, Osaka Municipal Workers’ Union, Nishiki Keto, representative, Labor Unions of Kyushu. Katsuji Nakajima, executive, Nagano Metal Workers’ Union, Junichi Wada, Shige Prefecture Employees’ Union. Shimotaka Marumich, Metal Workers’ Union. Yoshiyuki Kanagawa, chief, general affairs section, Japan Broadcasting Corp. Yoshio Takahara, special adviser, national resources section, GHQ, SCAP. Sen Nishiyama, special adviser, civil com- munications section, GHQ, SCAP. Mr. SMITH of New Jersey. I thank the Senator from Ohio for his courtesy in vield'ng me time to make that state- ment, DEATH OF WILLIAM LYON MACKENZIE KING, FORMER PRIME MINISTER OF CANADA Mr, LEHMAN. Mr. President, will the Senator from Ohio yield to me? Mr. TAFT. I ask unanimous consent, Mr. President, that I may yield to the Senator from New York for the purpose of making a brief statement, without los- ing the floor thereby. The FRESIDING OFFICER (Mr. Gi.- LETTE in the chair). Is there objection to the Senator from Ohio yielding to the Senator from New York without losing the floor? The Chair hears none, and it is so ordered. Mr. LEHMAN. Mr. President, in the death of William Lyon Mackenzie King, former prime minister of Canada, the world has lost a great leader, and this country a stanch friend. I shall always recall with deepest sat- isfaction the many demonstrations of friendship and cooperation shown me by Prime Minister King during the years I was governor of New York and during the period I was director general of UNRRA. Prime Minister King’s con- stant and intimate teamwork with Presi- dent Roosevelt during the trying years of World War II strengthened and encour- chief, Osaka Metropolitan Ohara, president, Kurashiki
1950 aged us all. He was a militant cham- pion of democracy and freedom and of the need of nations and peoples to live and work together. The New York Times and the Herald Tribune this morning have printed very fine editorials in appreciation of this great man. I ask unanimous consent to insert these editorials in the body of the Recorp at this point in my remarks. There being no objection, the editor- ials were ordered to be printed in the Recorp, as follows: [From the New York Times of July 24, 1950] A STATESMAN PASSES In the death of Willtam Lyon Mackenzie King on Saturday the United States loses a stanch friend who believed firmly in Amer- ican-Canadian unity on all levels, Mr. King had been prime minister of Canada for a total of 21 years and 5 months—a record in that office ami ng members of the British Commonwealth of Nations. He had seen Canada emerge from dominion status to full nationhood, in equal partnership with Great Britain and other commonwealth nations, This achievement was perhaps outstanding in the long political career he began in 1908. Another accomplishment was his strength- ening of Canada's internal unity by equal respect for all population groups. In a na- tion of 13,500,000, half of British descent and 27 percent of French derivation, this achievement was not easy. Mr. King's acquaintance with the United States had begun early. After taking his master's degree at the University of Toronto, he had gpent one year at the University of Chicago, another at Harvard, and some time with the Rockefeller Foundation in New York. From his earliest tutoring by Sir Wil- fred Laurier, the eminent French-Canadian premier, he kept up his already lively inter- est in American developments. On terms of close friendship with Franklin D. Roosevelt throughout the latter’s presidency, he led his country admirably through the dificult war years, When war strain intensified feel- ing between English-speaking and French- speaking Canadians, he could always find a compromise acceptable to both groups, In 1941 through the American-Canadian Joint Permanent Defense Board, he set his coun- try on a policy of military collaboration with the United States—a policy still work- ing for the security of the two nations. Mr. King’s passing thus means a loss to this country as well as to Canada. The pol- icies he fostered and his achievements in office will make his name long remembered and respected. [From the New York Herald Tribune of July 24, 1950] W. L. MACKENZzIz KING During the more than 20 years that W. L Mackenzie King was Prime Minister of Can- ada he achieved international renown as & champion of democratic ideals and a builder of world amity as well as of national auton- omy. A veteran of international conferences, he was a dominant figure at the most impor- tant such meeting of our times—the San Francisco Conference which organized the United Nations. Statesmen of every nation sympathetic to Mr. King’s ideals—such 88 President Franklin D. Roosevelt—found in him a powerful ally at a time when the free world needed every ounce of strength tt could muster. He was the best of good neighbors, and it was largely through his efforts and understanding that the relation of the United States and Canada remains the world’s ex- emplar of friendship between nations. In view of the traditional differences be- tween the Bnglish- and French-speaking sections of Canada, the repeated indorse- CONGRESSIONAL RECORD—SENATE ments given to Mr. King’s leadership by his Own people are ample proof of his sincere de- votion to his country’s welfare. His infre- quent political setbacks were always tem- porary, and the leadership that succeeded him adheres to his principles today, even though most of his battles—for national autonomy, for popular unity, for social jus- tice—were won in hie lifetime. It is unfor- tunate that death deprived him of his long- cherished ambition to complete a set of memoirs about the public service to which he devoted his years. Mr. King never married, and he shunned the social world. His work was his life; he could die with the satisfac- tion that it was a good work, and he had done it well. CALL OF THE ROLL Mr. SALTONSTALL. Mr. President, I ask the Senator from Ohio if he will yield so that prior to beginning his address, which I understand is on a different sub- ject than those previously discussed, I may suggest the absence of a quorum? Mr. TAFT. I ask unanimous consent that I may yield for that purpose with- out losing the floor. The PRESIDING OFFICER. Is there objection to the Senator from Ohio yield- ing to the Senator from Massachusetts so he may suggest the absence of a quorum? The Chair hears none, and it is so ordered. Mr. SALTONSTALL. absence of a quorum. The PRESIDING OFFICER. The clerk will call the roll. The legislative clerk called the roll, and the following Senators answered to their names: I suggest the Atken Hickenlooper Martin Anderson Hill Maybank Benton Hoey Mundt Brewster Holland Murray Bricker Humphrey O'Conor Bridges Hunt O'Mahoney Butler Ives Pepper Byrd Jenner Robertson Capehart Johnson, Colo. Russeli Chapman Johnson, Tex Saltonrtal! Chavez Johnston, 8.C. Schoeppel Connally Kefauver Smith, Maine Cordon Kem 8mith, N. J. Darby Kerr Sparkman Donnell Kilgore Stennis ° Douglas Knowland Taft Ecton Langer Thomas, Okla. Ferguson Leahy Thomas, Utah Flanders Lehman Thye Frear Lodge Tobey George McCarran Tydings Gillette McCarthy Watkins Graham McClellan Wherry Green McFarland Wiley Gurney McKellar Williams Hayden McMahon Young Hendrickson Malone Mr. McFARLAND. I announce that the Senator from California [Mr. Dow- NEY] is absent because of illness. The Senator from Mississippi [Mr. EastLanp], the Senator from Louisiana [Mr. ELLENDER], the Senator from Arkan- sas (Mr. Fu.sricnt], the Senator from Illinois (Mr. Lucas], and the Senator from Pennsylvania {[Mr. Myers] are ab- sent on public business. The Senator from Louisiana [Mr. Lona], the Senator from Washington LMr. Macnvuson], the Senator from Idaho (Mr. Taytor], and the Senator from Kentucky (Mr. Wiruers] are absent by leave of the Senate. The Senator from West Virginia (Mr. Nrgty J is absent because of a death in his family. 10823 Mr. SALTONSTALL. Iannounce that the Senator from Washington {[Mr. Carn} and the Senator from Michigan (Mr. VaNpEnserc] are absent by leave of the Senate. The Senator from Idaho [Mr. Dwor- SHAK] and the Senator from Oregon [Mr. Morse] are absent on official business. The Senator from Colorado {Mr. MIL- Lrxin) is temporarily absent by leave of the Senate. The PRESIDING OFFICER. A quo- rum is present. THE ECONOMIC SITUATION PRODUCED BY THE KOREAN CRISIS Mr. TAFT. Mr. President, during the past few days I have listened with inter- est to the distinguished Senator from Massachusetts [Mr. Lopar] and the dis- tinguished Senator from Michigan [Mr. Fercuson] discuss the report of the Ty- dings subcommittee. At a later time I shall hope to make a few remarks on that subject myself. I regret that I have not been able to hear the entire debate on that matter, because I have been attend- ing steadily the meetings of the confer- ence committee on the social-security bill. Certainly I am interested in the remarks of those Senators. Mr. President, at this time I wish to discuss the general question before the Senate, namely, that with relation to the additional controls and the new eco- nomic situation produced by the Korean war. The Communist aggression in Korea, with its indication of the increased pos- sibility of a third world war, and the President’s request for $10,000,000,000 for additional armament—both added to @ situation already somewhat infla- tionary—have raised problems of the most serious concern to the American economic system. Already they have re- sulted in rapidly increasing prices in some fields, and a general fear of greater increases. This has produced a good deal of hoarding and hysteria which, at least for the moment, make this trend more severe. The President has suggested an elab- orate plan of controls granting him complete, arbitrary power over all agri- culture, industry, and transportation with certain notable exceptions; and he has suggested that “at an appropriate time” some part of the additional ex- pense should be covered by increased taxes. Dismissing at this moment the blame for the situation which has arisen in the world and the mess in which we find ourselves, it seems clear that at this time we have no alternative except to take every possible measure against the further expansion of Com- munist influence in the world to the point at which it may threaten the freedom of the people of the United States. There is a good deal of misunderstand- ing, however, a8 to just what it is, from an economic standpoint, that we face at the present time. There are two distinct problems. The first is the Korean war, which accounts perhaps for from two and one-half to four billion dollars of the additional appropriations requested by the President. This alone is not a tremendous factor, nor does it require
10824 any great economic effort, when we con- sider that we now have a national pro- duction of $270,000,000,000 a year and a nz Jonal annual income of $222,000,000,- 000 The increase directly attributable to the Korean war cannot justify many controls, except possibly the control of steel and scarce materials required for the manufacture of munitions. Second, however, the Korean war has impressed upon the people the necessity for increased military forces to deal per- haps in other parts of the world, with the type of war started by the Com- munists in Korea, and a better prepara- tion for a possible all-out attack by the Russians throughout the world. This accounts for the balance of the Pre3i- dent’s request for expenditures. All of this indicates, Mr. President, that we face a new status in this coun- try. something which we have never seen here before. It is not all-out war, be- cause the Russians may never make the attack which so many fear, but neither is it a state of peace in which we can de- velop our civilian progress and an in- creased standard of living to the extent we would like to do. Even the United States 1s not productive enough to pur- sue both policies to their ultimate end. If we are to spend as much as is now proposed on guns, we cannot spend so much on butter. The change to this new status is one which we cannot make without sacrificing some of the progress and some of the luxuries which have been our ideal. So far as we can see, this status may exist for 10 years, and we may as well face the problem and adjust ourselves to it. Some say the Russians will attack at once Some put the date at 1952 or 1963. Last week I saw one estimate that the attack would come in 1956 Perhaps .t may not be until 1960. I am not at all confident, Mr. President, that the Russians contemplate an all- out military attack at any time, or that there is any certainly of a third world war. The point that I am trying to make, however, 1s that now we have to plan for a type of economy entirely dif- ferent from the one for which we have planned herctofore, and so far as we can be certain now, the new one may last for 10 years. According to present estimates, the military expenses are to be increased by $10,000,000,000 a year. With further thought, the total bill may perhaps be an increase of $15,000,000,000 a year. Even assuming that there is a substan- tial reduction in Government domestic expenditures, that means a budget of $50,000,000,000 to $55,000,000,000 instead of $40,060,000,000. From an economic standpoint, however, this is still a very different position from all-out war. In the Second World War we expended about $100,000,000,000 a year for Gov- ernment activities, or about one-half of the total civilian production, In a new war, production would be greater, and one-half of the national production, if that is perhaps the limit of what we would set aside for war, might be $150,- 000,000,000 a year. In one case we would be taking one-half the national produc- tion; in what we contemplate and face today, we shall be taking only one-fifth. CONGRESSIONAL RECORD—SENATE One big difference between these two conditions is that if we take one-half of the national product for war, it is al- most impossible to cover it by taxes, That means, therefore, a substantial amount of borrowing, and inevitably it means price control and wage control and rationing, and—even then—proba- bly later it would mean inflation, such as followed the Second World War. During the world war many people thought that we should pay our way as we went along, but I could never see how this could be done by any form of taxa- tion which has yet been devised, because taxation must be uniform and taxation of such tremendous weight on a uniform basis 1s bound to impose intolerable hardships on some. It seemed to me that the only possible theoretical way to pay for all-out war by taxation would be by rationing income and taxing away everything over the as- signed amount. Mr. President, you can imagine what tremendous administra- tive and political difficulties that would involve, if, in fact, it did not infringe the Constitution of the United States. But this 1s not true of a Federal ex- penditure of fifty to fifty-five billion dollars This can be paid for out of taxes. Those taxes would be very heavy. They would cut somewhat all civilian standards of living. They would inter- fere with the development of civilian pro- duction and improved methods. But it can be done, and it is the only way to prevent inflation by reaching its princi- pal cause. It has been repeatedly proved by experience that it is impossible to bor- row vast sums of money and then hope by the imposition of controls to prevent the inevitable inflationary effects. Sooner or later the dike must break. If we want to stop inflation, we have to stop it at the source. If we can pay as we go and restrain the increase of private credit, then I see no reason for any over- all price, wage, or allocation controls. I see no reason to look forward for 10 yeays to a dictatorial control by Govern- ment of every phase of agriculture, in- dustry, and commerce Again, Mr. President, what I desire to emphasize is that what we are facing today is something that we have not faced before. It is a special state of semiwar It is a condition which calls for a great sacrifice on the part of the people. But it is, not as in the case of all-out war, a condition which can be financed on a pay-as-you-go basis, a condition to which we can adjust our economy and still maintain as large a part as possible of the freedom and the liberty and the progress which are es- sential to a free economy. The program which I suggest, there- fore, at this time is as follows: First. Impose controls on the increase of private credit. During the past year, bank loans have increased $3,000,000,000. Consumer credit has increased $2,500,- 000,000. The inflationary effect of hous- ing credit is hard to calculate in figures, but it has been substantial. Without doubt these increases in credit plus the Government deficit of more than $3,000,- 000,000 in the past year are responsible for the increased prices and the infla- JULY 24 tionary trend which developed even be- fore the Korean war. The President has already moved to check the Government stimulation of housing credit, although he seems to have done it rather to save materials for the war than as part of any general move to check credit inflation. I favor also the granting of power to control consumer credit, which has be- come such an important factor in mod- ern life. Government has always con- trolled credit through the banks Every responsible government controls and prevents the development of excessive credit, which builds up purchasing power without corresponding production, and therefore tends toward inflation. It seems to me proper, today, to extend it to consumer credit, in order that the whole field may ke covered. I do not quite see the need for checking private real-estate credit, which is covered spe- cifically in the bill, because I believe it can be controlled through the general control of bank lending. I see no reason to turn over the whole control of credit to the President, as proposed in the new bill. In my opinion, 1t should be retained in the Federal Reserve Board, which al- ready has full power over bank credit. Second. The Government should re- duce domestic expenditures. Just as civilians generally will have to make some sacrifice in their plans, so must also the Government and the communities, as far as their own domestic expendi- tures are concerned. Third. Taxes must be levied to cover all contemplated expenditures, and they should be levied at once. A week ago the Senator from Virginia [Mr. Rosertson] proposed a general increase of 10 per- cent in all income taxes. That would produce only about $3,000,000,000. Mere- ly to give an idea of the volume of what we are faced with here, an increase of 20 percent on all corporation and per- sonal incomes would only produce about $6,000,000,000 a year. An increase of 25 percent would only produce $7,500,000,- 000 a year. Of course, the increased ex- penditures will not begin immediately, so that it requires a more complete cal- culation to determine just how much of an increase is necessary to balance ex- penditures during the next 8 months. By that time Congress would be in a position to enact a more permanent tax system Fourth. With such a program, I be- lieve it is unnecessary to grant any such arbitrary and dictatorial powers over in- dustry as is proposed in the bill recently introduced. The President's message is comparatively mild The bil] itself goes far beyond the message. It includes some controls which did not even exist in the Second World War. It is perhaps significant that it omits only those con- trols which might be unpopular, namely, detailed price control and consumer rationing. Also, it puts off the levying of taxes, apparently, until an “appropri- ate time.” But if the other controls are granted in this present bill, it seems to me these final controls must inevitably follow after the election. It also omits immediate taxation which might be con- sidered unpopular. I do not think the
1950 people realize how extreme the controls proposed in the bill are, and I point out a few of those which are now requested: First. The right to require anyone to accept and perform any contract appar- ently on terms to be fixed by the Govern- ment. At least Isee no machinery set up by which it can be determined how the price is to be fixed. Second, The right to “allocate mate- rials and facilities.” The “allocation of materials’ I think were the words used in the Second War Powers Act, in the World War, to justify a general ration- ing system. Consumer rationing is ex- pressly excepted in this bill, but ap- parently we could ration right down to the grocer, and the grocer would have to invent his own system of ration- ing among the consumers. It seems to me this language would enable the Presi- dent to shut down any industry in the United States by refusing to allocate materials to it, to require any industry to shift from one kind of manufacture to another, apparently without compensa- tion of any kind; to require any farmer to plant such crops as the Secretary of Agriculture may direct—because, when it comes to the allocation of facilities, the allocation of facilities undoubtedly 1n- cludes the farmer’s machinery, if it does not include his land, just as much as it includes the facilities of any industrial plant—and to control every detail of transportation in the United States. I certainly should not object to some power to allocate scarce materials, particularly steel. It seems wholly unnecessary to ex- tend this power to the entire economy of the United States. It has been suggested that under this proposal, the entire Brannan plan could be put into effect, because, under the al- location of power, the farmer could be told exactly what he could plant and what he could not plant. On page 8 the President is given power to make provi- sion for purchases of metals, minerals, and other raw materials, which might be any farm product, for Government use, or for resale, so that the Govern- ment could buy and sell to an unhmited extent, take a loss, or buy high and sell cheap, and, of course, stand the differ- ence, which would amount to a subsidy on agricultural products and on food. Furthermore, the bill contains power to establish any kind of corporation to buy and sell, and whatever powers are necessary to carry out the Brannan plan or any other plan for the control of agri- culture or industry, It seems to me that it is almost unlimited. Third. The power to requisition any property, plant, or other facility in the United States, any plant anywhere, or any property the President chooses to requisition. Fourth. The right to guarantee any loan or to make any loan to any corpora- tion. That seems to me to be an un- limited power of lending. We have seen the magnificent results of the RFC lending in three or four very notable cases, and it certainly seems question- able whether we should loan money to any corporation which the President would like to assist to produce some product desired by the Army, CONGRESSIONAL RECORD—SENATE Fifth. The right to set up Government corporations to go into any business the Government wants to go into, up to a total of $2,000,000,000. Mr. President, I cannot quite see why, 80 far as additional equipment now re- quired is concerned, whatever it may be, the American industrial plant is not per- fectly competent to make the things that are needed. It seems to me that if the Government wants to go into the business of making things, it should specify those things. We recently Passed a bill providing that the Govern- ment could raise hemp in Centra] Amer- ‘ca If there is any special thing that only the Government can do, I have no ercat objection to authorizing it to do it, but the general power to go into any business it wants to go into seems to me to be wholly unjustified. Mr. TOBEY Mr. President, will the Senator yield? Mr, TAFT. I yield to the Senator from New Hampshire Mr. TOBEY. I do not have a copy of the bill before me, but we held a hearing this morning, and I should like to ask the distinguished Senator this question: What is the meaning of the word “facilities”? Mr. TAFT. I discussed the use of the word “facilities.” So far as I can see, it means almost anything. I suggested, before the Senator came in, that it prob- ably includes farm machinery. It in- cludes machinery and possibly the in- dustrial plant itself. Whether it in- cludes land may be doubtful. Certainly I think it includes machinery and plant. Mr. TOBEY. By no stretch of the imagination could it control labor? Mr. TAFT. No. I do not think it would include labor, except possibly coal labor, where a large amount of ma- chinery is involved. There might be some indirect control by contro] of facilities. Sixth. The control of real-estate credit. The chief difficulty with that is that it is rather difficult to pick out real-estate credit from other credit, I think we can satisfactorily control real-estate credit by the general control of the banks, The Federal Reserve Board has not taken any steps, so far as I know, to try to restrict the inflation which started before the Korean war, and certainly there has been no effort to restrict the over-all amount of bank loans. Bank loans have increased approximately $3,000,000,000 within the past 12 months. That is, perhaps, not extraordinary, considering the increase in general business activity, but, nevertheless, if we do not want to go on with inflation it seems to me that bank loans should be held at about where they are, in total. Real-estate credit, I think, is included. Seventh. The control of margins on commodity exchanges. Last year we examined that and did not feel that the exact amount of mar- gins on commodity exchanges had any- thing to do with the price increases which occurred 2 or 3 years ago. I think Congress rejected the request for a fur- ther control over margins for fear a higher margin would entirely destroy the hedging market. 10825 Eighth. The power to go into anybody’s business and subpena any information, confidential or otherwise. I donot think I have ever seen such broad power to go into anyone’s business and require him to bring all the evidence which the Presi- dent might demand. It is significant that some of these powers were sought in peacetime in the Spence bill, and there is at least a sus- picion that the present crisis is being used to secure powers long desired, but unrelated to present necessities. Mr. TOBEY. Mr. President, will the Senator yield further? Mr. TAFT. I yield. Mr. TOBEY In other words, to secure by indirection that which could not re- ceive the Senate’s approval by direction. Mr. TAFT I think the Senator states much better than I do the suggestion, at least, which has occurred to me All these powers as well as price con- trol, wage control, and rationing might well be part of a general grant in case of all-out war. I have emphasized the fact that all- out war means taking such a large pro- portion, 50 percent, of all production that it cannot possibly be financed by taxation, and therefore, we have to treat it on a different basis. I would not object to working on a draft of a statute which could be prompt- ly enacted in case such a war occurred. Even then it seems to me that powers given are much too arbitrary and with- out the proper safeguards of appeal which are necessary to assure justice, even in time of war. But there are two principles which I want to assert as strenuously as I can: First. Arbitrary powers should not be granted unless they are necessary for the particular crisis which we face. Second. Arbitrary government con- trol is not a cure for inflation. We fool ourselves if we think that these controls prevent inflation. They attempt to pre- vent the results without striking at the cause. The way to prevent inflation is to go on & pay-as-you-go basis. We face a new status of a semigarrison state, forced on us by the Russian threat. However, we got there, now we have to pay for it. Let us not fool ourselves by thinking we can borrow the money and go on enjoying ourselves to the full on a domestic spree. We have to give up some of our purchasing power hereto- fore available for domestic purposes in the form of taxation so it can be spent for war purposes, We cannot have something for nothing. In the end, we would pay for it much more violently in money and increased prices. Whatever the situation is brought about by Rus- sian aggression and administrative pol- icy it ought to be faced now and ought not to be hidden and concealed until after November 1. Mr. SALTONSTALL. Mr. President, will the Senator yield for a question? My. TAFT. I yield. Mr. SALTONSTALL. The Senator said he believed that there should be some increased taxation, How much increased taxation does he feel we could bear through our ordinary methods of taxation, without confiscation, to take care of additional expenditures?
10826 Mr. TAFT. I cannot say as to the limit; I do not know. An increase from forty billion to fifty-five billion dollars has been proposed as the total Federal expenditure which could be borne by taxation, interfering with the progress of our domestic system, but not choking it to death so to speak. Mr. SALTONSTALL. Some of it should come out of our present domestic expenditures, should it not? Mr. TAFT. I tried to emphasize three things as being those which bring about inflation and force up prices. One is the undue increase of private and Govern- ment housing credit; second, unnecessary Government expenditures for domestic purposes; third, the failure to levy taxes to cover all Government expenditures. Mr. LANGER. Mr. President, I should like to ask the distinguished Senator from Ohio whether an increase in taxes would mean not only an increase in in- come taxes but also an increase in cor- poration taxes? Mr, TAFT. Yes. The Senator from Virginia, I believe, suggested a 10-per- cent increase in all taxes, which would include corporation, individual, and every other kind. I was merely giving the figures of the amount that kind of system would produce. It may be a makeshift arrangement, but it is pos- sible to act on quick notice. MESSAGES FROM THE PRESIDENT— APPROVAL OF BILLS Messages in writing from the Presi- dent of the United States were com- municated to the Senate by Mr. Miller, one of his secretaries, and he an- nounced that the President had ap- proved and signed the following acts: On July 21, 1950: 8.441. An act to redefine the units and establish the standards of electrical and photometric measurements; and 8.2046. An act to provide authority for certain functions and activities In the De- partment of Commerce, and for other purposes. On July 22, 1960: 8 657. An act for the relief of the McCor- mick Engineering Co. and John E. Price, an individual doing business as the Okeechobeo Construction Co.; 8.2201. An act to amend section 2 of the act of March 38, 1901 (31 Stat. 1449), to pro- vide bas.c authority for the performance of certain functions and activities of the De- partment of Commerce, and for other pur- poses; and 8. 2567. An act to authorize the Secretary of Commerce to grant to the East Bay Mu- nicipal Utility District, an agency of the State of California, an easement for the con- struction and operation of an interceptor sewer pipeline in and under certain Gov- ernment-owned lands comprising a part of the Maritime Alameda Shipyard, Alameda, Calif. MESSAGE FROM THE HOUSE—ENROLLED BILL SIGNED A message from the House of Repre- sentatives, by Mr. Snader, its assistant reading clerk, announced that the Speaker had affixed his signature to the enrolled bill (H. R. 3506) for the relief of Louis P. Murphy, United States immi- grant inspector, EB] Paso, Tex., and it was signed by the Vice President. CONGRESSIONAL RECORD—SENATE TRANSACTION OF ROUTINE BUSINESS By unanimous consent, the following routine business was transacted: EXECUTIVE COMMUNICATIONS, ETC. The VICE PRESIDENT laid before the Senate the following letters, which were referred as indicated: ReporT ON TorT CLAIMS Paty BY DEPARTMENT OF AGRICULTURE A letter from the Acting Secretary of Ag- riculture, transmitting, pursuant to law, a report of tort claims paid by the Depart- ment of Agriculture, for the fiscal year ended June 30, 1950 (with an accompanying report) ; to the Committee on the Judiciary. Dests or InpivipuaL INDIANS AND INDIAN TRIBAL ORGANIZATIONS A letter from the Secretary of the Interior, transmitting a draft of proposed legislation to authorize the Secretary of the Interior to compromise, adjust, or cancel certain debts of individual Indians and Indian tribal or- ganizations, and for other purposes (with ac- companying papers); to the Committee on Interior and Insular Affairs. REPORT AND FINDINGS ON MippLe Rio GRANDE Project, NEW MExico A letter from the Secretary of the In- terior, transmitting, pursuant to law, his report and finds on the Middle Rio Grande project, New Mexico (with an accompanying report); to the Committee on Interior and Insular Affairs. REPORT ON PERSONNEL AND COMPENSATION AT UNITED STATES NAVAL POSTGRADUATE SCHOOL A letter from the Under Secretary of the Navy, reporting, pursuant to law, on the number of professors and instructors and the amount of compensation of such person- nel at the United States Naval Postgraduate School; to the Committee on Armed Sorvices, Report ON TorT CLAIMS Patp ny Posr OFFICE DEPARTMENT A letter from the Postmaster General, transmitting, pursuant to law, a report on tort clatms paid by the Post Qffice Depart- ment for the fiscal year ended June 30, 1950 (with an accompanying report); to the Com- mittee on the Judiciary. Report oN Tort CiAims Par By Post OFFICE AND HOME FINANCE AGENCY A letter from the Administrator of the Housing and Home Finance Agency, Wash- ington, D. C., reporting, pursuant to law, on tort claims paid by the Agency, for the cal- endar year 1949; to the Committee on the Judiciary. PETITIONS AND MEMORIALS Petitions, etc., were laid before the Senate, or presented and referred as in- dicated: By the VICE PRESIDENT: A joint resolution of the Legislature of the State of Alabama; to the Committee on the Judiciary: “Senate Joint Resolution 15 “ ‘Whereas the Legislature of Alabama be- lieves that the present international situa- tion makes the presence of Communists and communistic activities in the United States an extremely grave danger to the peace, security, and safety of our citizens; and “Whereas the Legislature of Alabama is of the opinion that all Communists in the United States who are deportable should be deported: Now, therefore, be it “ ‘Resolved by the Senate of Alabama (the House concurring): “1, The Legislature of Alabama respect- fully requests and memorializes the Con- gress of the United States to enact legisla- JULY 24 tion ordering the deportation of all Com- munists in the United States who are de- portable. “9. The Secretary of the Senate is directed to transmit a copy of this Resolution to the Becretary of the United States Senate, the Clerk of the United States House of Repre- sentatives and to each member of tho Ala- bama congressional delegation.’ “The above resolution was adopted by the Legislature of Alabama on July 11, 1960. “J, BS. Spricur, “Secretary.” A resolution adopted by the General Driv- ers, Warehousemen & Helpers Local Union No, 89, Louisville, Ky., relating to the case of the United States against the Great At- lantic & Pacific Tea Co.; to the Committee on the Judiciary. A resolution adopted by the Virginia- Carolinas Typographical Conference, Rich- mond, Va., endorsing a 35-hour workweek for all Government employees; to the Com- mittee on Labor and Public Welfare. The petition of Beulah Root, of Caplinger Mills, Mo., praying for the enactment of House bill 8143, to provide automatic annual pay increases for postmasters; to the Com- mittee on Post Office and Civil Service. The memorial of Josie Kelrsey, of Butler, Mo., remonstrating against any change in the present parcel post service; to the Com- mitee on Post Office and Civil Service. By Mr. LODGE (for himself and Mr, SALTONSTALL) : Resolutions of the General Court of the Commonwealth of Massachusetts; to the Committee on Post Office and Civil Service: “Resolutions providing that the Congress of the United States be petitioned to pass legislation authorizing the issue of a com- memorative postage stamp in recognition of the outstanding service to the Nation of Maj. Gen. Henry Knox “Whereas the Commonwealth of Massa- chusctts has been invited to join with her sister State, the State of Maine, in com- memorating the two hundredth anniversary of the birth of Maj. Gen. Henry Knox, which event occurred in Boston on July 25, 1750; and “Whereas during his lifetime General Knox rendered outstanding service in the military, political and industrial life of the Nation and this commonwealth, serving as he did as general of artillery in the American Revo- lution, ag Secretary of War in the national Cabinet, as a member of the Massachusetts General Court and as a member of the Gov- ernor’s Council; and “Whereas a 3-day celebration of the birth of General Knox hag been planned under the auspices of the Knox Memorial Association to be held in Thomaston, Maine, and the leg- islature of that State has unanimously adopted a resolution to Congress asking that & commemorative postage stamp be issued in his honor; and “Whereas it is appropriate that Massa- chusetts join with the Thirteen Original States in asking that this laudable tribute be paid to a son of Massachusetts: Therefore be it “Resolved, That this great historic occasion be and hereby is recognized with full ap- proval and support of the events of the year; and be it further “Resolved, That our Senators and Repre- sentatives in Congress be and hereby are requested to petition the Congress of the United States to pass appropriate legislation authorizing the issue of a postage stamp showing the beautiful “Montpellier” with a portrait of Gen. Henry Knox in recognition of his eminent military, political and indus- trial service to our country; and ba it further “Resolved, That copies of these resolutions be sent forthwith by the State secretary to the President of the United States, to the presiding officer of each branch of Congress,
1950 and to the Members thereof from this Com- monwealth. “Tn house of representatives, adopted Jul 7, 1950. pied July “Lawrence R. Grove, © “Clerk. “In senate, adopted, in concurrence, July 12, 1950. “IrvVING N. HAYpEn, “Clerk.” The VICE PRESIDENT laid before the Senate resolutions of the General Court of the Commonwealth of Massachusetts, identical with the foregoing, which were referred to the Committee on Post Office and Civil Service. REPORTS OF COMMITTEES The following reports of committees were submitted: By Mr. McFARLAND, from the Committee on Interstate and Foreign Commerce: H.R. 4251. A bill to amend section ¢ (g) of the Communications Act of 1984 to per- mit the Federal Communications Commis- sion to make expenditures for land for radio monitoring stations, and for other purposes; with amendments (Rept. No. 2119). By Mr. McCARRAN, from the Committee on the Judiciary, without amendment: 8.3289. A bill for the relief of Hisako Oka- moto (Rept. No. 2121); 8.3709. A bill for the relief of certain dis- bursing officers and former disbursing officers of the naval service, and for other pur- poses (Rept. No. 2122); H.R. 702. A bill for the relief of Mrs. Ethel N. Plunkett (Rept. No. 2123); H.R. 2462. A bill for the relief of Miju Iseri Tsuda (Rept No. 2124) ; H. R. 2808. A bill for the relief of Grace G. Walker (Rept. No. 2125); H. R. 3316. A bill for the relief of the estate of the late Francisco J. Cordova (Rept. No. 2126); H.R, 3994. A bill for the rellef of John D. Lange (Rept. No. 2127); H.R. 6018. A bill for the relief of Lubomir Mikulik and Viliam Krajcirovic (Rept. No. 2128); Hk. 6700. A bill for the relief of Ed How- ard Russell (Rept. No, 2129); H.R. 8600. A bill for the relief of Yuriko Aoyama (Rept, No. 2180); and 8.J.Res.20. Joint resolution authorizing the President to issue a proclamation desig- nating October 81 of each year as Youth Honor Day (Rept. No. 2131). By Mr. McCARRAN, from the Committee on the Judiciary, with an amendment: H.R. 4806. A bill for the relief of Dr. Fran- cesco Drago (Rept. No. 2132); H.R. 6016. A bill for the relief of Mrs, Vir- ginia Dalla Rosa Prati and her minor son, Rolando Dalla Rosa Prati (Rept. No. 2133); H.R. 6363. A bill conferring jurisdiction on the United States District Court for the Mid- dle District of North Carolina to hear, deter- mine, and render judgment upon certain claims of the Patuxent Development Co., Inc, (Rept. No, 2184); and H. R. 6758. A bill for the rellef of Ruby Thaw and Hla Sein (Rept. No. 2135). By Mr. McCARRAN, from the Committee on the Judiciary, with amendments: 8.827. A bill to amend the act of June 168, 1084, to provide for allowances to the heirs, representatives, and assigns of Frank J. Boudinot, deceased, in the event of favor- able determination by the Indian Claims Commission of certain claims of the Chero- kee Indians (Rept. No. 2186); and H.R. 4628. A bill to confer jurisdiction upon the Court of Claims to hear, determine, and render judgment upon the claim of Louls J. Marx (Rept. 2137), CONGRESSIONAL RECORD—SENATE By Mr. IVES, from the Committee on Ex- Penditures in the Executive Departments: H.R, 5008. A bill to provide for the ex- change between the United States and the State of New York of certain lands and in- terests in lands at Manhattan Beach, Kings County, N. ¥.; without amendment (Rept. No. 2139). By Mr. O'MAHONEY, from the Committee on Interior and Insular Affairs: 8. 2863. A bill to provide for the expansion and dieposition of certain national ceme< teries; with an amendment (Rept. No, 2141); H R. 2588. A bill to confirm title in V. Le- Blanc and ©, Riccard to certain lands in West Baton Rouge Parish, La.; without amendment (Rept. No, 2142); H.R. 6013. A bill to amend an act fixing the price of copies of records furnished by the Department of the Interior; without amendment (Rept. No. 2143); H.R, 6292. A bill to provide that payments to States under the Ot] Land Leasing Act of 1920 shall be made biannually; without amendment (Rept. No, 2144); H.R. 6697. A bill authorizing the issuance of a patent in fee to Howard H. Moran; with- out amendment (Rept. No. 2150); H.R. 6699. A bill to authorize the sale of certain land on the Rosebud Indian Reser- vation, 8. Dak., allotted to Susan Eagle Dog; without amendment (Rept. No. 2151); H.R. 7389. A bill to abolish the Holy Cross National Monument, in the State of Colo- rado, and to provide for the administration of the lands contained therein as a part of the national forest within which such na- tional monument ts situated, and for other purposes; without amendment (Rept. No. 2145); H.R. 7675. A bill to authorize the addition of certain land to Chickamauga and Chat- tanooga National Military Park, in the State of Tennessee; without amendment (Rept. No. 2146); H.R. 7977. A bill to authorize the city of Buffalo, Wyo., to make additional uses of cer- tain lands, and for other purposes; without amendment (Rept. No. 2147); and H.R. 7982. A bil! to abolish the Wheeler National Monument, in the State of Colo- rado, and to provide for the administration of the lands contained therein as a part of the national forest within which such na- tional monument is situated, and for other purposes; without amendment (Rept. No, 2148,. By Mr. ANDERSON, from the Committee on Interlor and Insular Affaire: H.R. 6247, A bill authorizing transfer of land and improvements thereon by the Sec- retary of the Interior to New Mexico State Fair; without amendment (Rept. No. 2149). By Mr. MURRAY, from the Committee on Interior and Insular Affairs: H.R. 2196, A bill to authorize the elimi- nation of lands from the Flathead Indian irrigation project, Montana; without amend- ment (Rept. No. 2162). AMENDMENT OF FEDERAL PROPERTY .AND ADMINISTRATIVE SERVICES ACT— REPORT OF A COMMITTEE Mr. McCLELLAN. Mr. President, from the Committee on Expenditures in the Executive Departments, I report an original bill, to amend the Federal Prop- erty and Administrative Services Act of 1949, and for other purposes, and I sub- mit a report (No. 2140) thereon. The VICE PRESIDENT. The report will be received, and the bill will be placed on the calendar. The bill (8. 8959) to amend the Fed- eral Property and Administrative Serv- ices Act of 1949, and for other purposes, 10827 was read twice by its title, and ordered to be placed on the calendar. FEES FOR SPECIAL SERVICES—REPORT OF A COMMITTEE (REPT, NO. 2120) Mr. McCLELLAN, Mr. President, pur- suant to the provisions of the Legisla- tive Reorganization Act, from the Com- mittee on Expenditures in the Executive Departments, I submit a report entitled “Fees for Special Services.” The VICE PRESIDENT. The report will be received and printed. REFERENCE OF H. R. 1603 TO COURT OF CLAIMS—REPORT OF A COMMITTEE Mr. McCARRAN. Mr. President, from the Committee on the Judiciary, I report an original resolution, referring H. R. 1603 to the Court of Claims, and I submit a report (No, 2188) thereon. The VICE PRESIDENT. The report will be received, and the resolution will be placed on the calendar, The resolution (8S, Res. 317) was or- dered to be placed on the calendar’, as follows: Resolved, That the bill (H. R. 1603) entitled “For the relief of Walter P. Gardner, sole sur~ viving trustee of the property of the Central Railroad Co. of New Jersey” now pending in the Senate, together with all the accom- panying papers, is hereby referred to the Court of Claims; and the court shall proceed with the same in accordance with the pro- visions of sections 1492 and 2609 of title 28 of the United States Code and report to the Senate, at the earliest practicable date, giv- ing such findings of fact and conclusions thereon as shall be sufficient to inform the Congress of the nature and character of the demand as a claim, legal or equitable, against the United States and the amount, * if any, legally or equitably due from the United States to the claimant. BILLS INTRODUCED Bills were introduced, read the first time, and, by unanimous consent, the second time, and referred as follows: By Mr. McMAHON: 8. 8957. A bill to amend title 46, United States Code, section 251; to the Committee on Interstate and Foreign Commerce. By Mr. WILEY: 8. 3968. A bill for the rellef of Henning ies Meyer, to the Committee on the Judi- ciary. (Mr. McCLELLAN, from the Committee on Expenditures tn ihe Executive Departments, reported an original bill (8. 83959) to amend the Federal Property and Administrative Services Act of 1949, and for other purposes, which was ordered to be placed on the cal- endar, and appears under a separate head- ing.) By Mr. JOHNSON of Colorado (by re- quest) : 8.8960. A bill to amend subsection (b) of section 10 of the act of June 26, 1884, as amended (U. 8. C., title 46, sec. 699 (b)); and 8. 8961. A bill to amend the act of April 29, 1941, to authorize the waiving of the re- quirement of performance and payment bonds in connection with certain Coast Guard contracts; to the Committee on In- terstate and Foreign Commerce. By Mr. THOMAS of Oklahoma: 8. 3962, A bill to extend to personnel of the Armed Forces participating in the Ko- rean campaign all benefits which were appii- cable to persons who performed military service during World War I or World War
10828 II, and for other purposes; to the Committee on Armed Services. PRINTING OF ADDITIONAL COPIES OF HEARINGS ON INVESTIGATION OF DIS- LOYALTY IN STATE DEPARTMENT Mr. WHERRY (for himself and Mr, Fercuson) submitted the following con- current resolution (8. Con, Res, 98), which was referred to the Committee on Rules and Administration: Resolved by the Senate (the House of Representatives concurring), That there be printed, for the use of the Senate, 1,500 ad- ditional copies o2 the hearings before the subcommittee of the Committce on Foreign Relations, pursuant to Senate Resolution 231 (81st Cong,, 2d. sesc.), & resolution to inves- tigate whether there are employees in the State Department disloyal to the United States. Such hearings shall include all the testi« mony and matters connected therewith, both in open and executive sessions. INVESTIGATION OF OPERATIONS OF PRO- GRAM FOR PROCUREMENT OF SUP- PLIES, ETC., IN DEFENSE DEPARTMENT Mr. FERGUSON. Mr. President, I submit for appropriate reference a reso- Jution to investigate the operations of the program for the procurement of sup- plies, in the Defense Department, and I ask unanimous consent that a state- ment prepared by me in connection with the resolution be printed in the Recorp. The VICE PRESIDENT, The resolu- tion will be received and appropriately referred, and, without, objection, the statement presented by the Senator from Michigan will be printed in the Recorp, The resolution (S. Res. 318) was re- ferred to the Committee on Expenditures in the Executive Departments, as fol- lows: Resolved, That a special committee of seven Senators, to be appointed by the Pres- ident of the Senate, is authorized and dl- rected to make a full and complete study and investigation of the operation of the program for the procurement and construc- tiou of supplies, materials, munitions, vee hicles, aircraft, vessels, plants, camps, and other articles and facilities in connection with the national defense, including (1) the types and terms of contracts awarded on behalf of the United States; (2) the methods by which such contracts are awarded and contractors selected; (3) the utilization of the facilities of smail business concerns, through subcontracts or otherwise; (4) the geographic distribution of contracts and loca- tion of plants and facilities; (5) the effect of such program with respect to labor and the migration of labor; (6) the perform. ance of contracts and the accountings re- quired of contractors; (7) benefits accruing to contractors with respect to amortization for the purposes of taxation or otherwise; (8) practices of management or labor, and prices, fees, and charges, which interfere with such program or unduly increase its costs; and (9) such other matters as the committee deems appropriate. The come mittee shall report to the Senate, as soon as practicable, the results of its study and in- vestigation, together with its recommenda. tions. For the purposes of this resolution the committee, or any duly authorized subcom.~ mittee thereof, is authorized to hold such hearings, to sit and act at such times and places during the sessions, recesses, and ad- journed periods of the Eighty-first and suc- ceeding Congresses, to employ such clerical . CONGRESSIONAL RECORD—SENATE and other assistance, to require by subpena, or otherwise, the attendance of such wit- nesses and the production of such corre- spondence, books, papers, and documents, to make such investigations, to administer such oaths, to take such testimony, and to incur such expenditures as it deems advisable. The cost of stenographic services to report such hearings shall not be in excess of 25 cents per hundred words. The expenses of the committee, which shall not exceed 8 , Shall be paid from the contingent fund of the Senate upon vouchers approved by the chairman of the committee. The statement presented by Mr. Frr- Guson {s as follows: STATEMENT BY SENATOR Ferauson I have submitted to the Senate a rcsolu- tion calling for the creation of a special committee to monitor the immediate defense effort in the same way that the Truman Committee functioned in the late war. The occasion for such a committee is already here because we are involved in an international police effort approximating war and we are stepping up our home and the Atlantic na- tion’s preparedness efforts far in excess of normal peacetime operations, Accordingly, the Senate should have at its immediate disposal an instrument in the furm of a special committee which can in- quire into the progress we are making, moni- tor the programs being launched, inquire into such bottlenecks as develop, expedite procurement operations, examine contracts, and guard against waste in the use of Gov- ernment funds in the same efficient manner Os was done by the Truman committee. It is not my intention to have this com- mittee interfere in any manner with the work of other committees. Tho Armed Services Committee will still have the vital job of keeping its finger on the work and problems of the Armed Services. The Appropriations Committee and the Expenditures Committee will have all they can handle to keep track of the Nation's expenditures for military and civilian purposes. Other committees will still have the job of supervising legislative mat- ters of priorities, allocations, Government contracts, credit policies, and other impor- tant phases of the civilian economy and its relation to the preparedness efforts. But by the very nature of things all these efforts of our regular standing committees n:ust be compartmentalized because jurisdic- tion over the country’s affairs is divided among 15 or more committees. There 1s urgent need today, just as there was when the Truman committee was formed, for a special committee with full investigatory powers to cut across jurisdictional lines for the purpose of considering problems from many angles and to do the important job of coordination which proved so valuable in the operations of the Truman committee. The resolution I have proposed calls upon the President of the Senate to appoint a special committee of seven Senators and the presumption is that they will be selected from the several different regular committees which will be immediately concerned with our enlarged preparedness efforts. As in the Truman committee, I hope this new com- mittee will be representative of both our major political parties so as to make the committee national in character in keeping with the high tdeals and motives which com- pel us to engage upon a preparedness pro- gram at this time. AMENDMENT OF FEDERAL DEPOSIT IN- SURANCE ACT—CHANGE IN CONFEREES Mr. MAYBANK. Mr. President, I ask unanimous consent that the name of the juntor Senator from Ohio (Mr. Bricxer] be substituted for that of the junior JULY 24 Senator from New Hampshire [Mr. Toney] as a member of the conference committee conferring on the FDIC bill (S. 2822) to amend the Federal Deposit Insurance Act (U. 8. C., title 12, sec. 264). The VICE PRESIDENT. Is there ob- jection? The Chair hears none and the substitution will be made, FEDERAL DEPOSIT INSURANCE CORPORA- TION—PRINTING OF SENATE BILL WITH HOUSE AMENDMENTS Mr. MAYBANK. Mr. President, I ask unanimous consent that the bill dealing with the Federal Deposit Insurance Cor- poration, Senate bill 2822, be printed with the House amendments. The VICE PRESIDENT. Without ob- jection, it is so ordered. NOTICE OF MOTION TO SUSPEND THE RULE—AMENDMENT TO GENERAL AP- PROPRIATIONS BILL Mr. WILLIAMS submitted the follow- ing notice in writing: In accordance with rule XL of the Standing Rules of the Senate, I hereby give notice in writing that it is my intention to move to suspend paragraph 4 of rule XVI for the pur- pose of proposing to the bill (H. R. 7786), making appropriations for the support of the Government for the fiscal year ending June 80, 1951, and for other purposes, the follow. ing amendment, namely: On page 478, be- tween lines 18 and 19, insert the following: “Sec. . No funds or contract authoriza- tions made available by this act shall be used for the construction of any structure, work, or other project unless (1) such construction is certified by the Secretary of Defense to be essential to national security, or (2) the cone struction of such structure, work, or other project has been commenccd prior to the enactment of this act, and substantial detri- ment to the interests of the United States will result if the proposed further construc- tion is not carried out.” Mr. WILLIAMS also submitted an amendment intended to be proposed by him to House bill 7786, making appro- priations for the support of the Govern- ment for the fiscal year ending June 30, 1951, and for other purposes, which was ordered to lie on the table and to be printed. (For text of amendment referred to, see the foregoing notice.) CONDITIONS IN ITALY—-ARTICLE BY SENATOR BENTON [Mr. BENTON asked and obtained leave to have printed in the Recorp an article written by him regarding conditions in Italy, which appears in the Appendix. ]} THE KOREAN CRISIS AND UNIVERSAL MILITARY TRAINING—ACDRESS BY GEORGE N. CRAIG [Mr. BRIDGES asked and obtained leave to have printed in the Recorp an address on the subject of the Korean crisis and the need for universal military training, delivered by George N. Craig, national commander, Amer- ican Legion, before the Special Conference of Department Commanders of the The Amert- can Legion in Indianapolis, on July 23, 1950, which appears in the Appendix.) KOREA AS A TEST OF WORLD LAW—AR- TICLE BY DR. PAUL F. DOUGLASS {Mr. WILEY asked and obtained leave to have printed in the Recorp an article en- titled “Test of World Law,” written by Dr.
1950 Paul F, Douglass, president of American Unt- versity for the United Nations League of Lawyers, which appears in the Appendix.} RESETTLEMENT OF DISPLACED PER- SONS IN WISCONSIN—ARTICLE FROM LA CROSSE REGISTER {Mr. WILEY asked and obtained leave to have printed in the Recorp an article rela- tive to the resettlement of displaced persons in Wisconein, published in the La Crosse Register of July 21, 1950, which appears in the Appendix.) ABANDONMENT BY NORWAY OF SUBSIDY PLAN FOR AGRICULTURE (Mr. THYE asked and obtained leave to have printed in the Recorp an article en- titled “Norway Subsidy Plan Too Expensive," published in the St. Paul Dispatch of Thurs- day, July 20, 1950, which appears in the Ap- pendix ] THE CASE OF MR. KRIPS—EDITORIAL FROM NEW YORK TIMES [Mr. LEHMAN asked and obtained leave to have printed in the Recorp an editorial en- titled “The Case of Mr. Krips,” published in the New York Times of July 21, 1950, which appears in the Appendix.) THE PRESIDENT'S MILITARY PROGRAM— $3,090,000,000 ECA PROGRAM FOR NA- TIONAL DEFENSE Mr. MALONE. Mr. President, taxes need not be raised to meet the cost of the President’s military program. The President has requested $10,000,000,000 for the program. In the face of oncom- ing war and our preparation for it, the ECA, formerly called the Marshall plan, a@ peacetime endeavor, could be stopped, The ECA’s $3,000,000,000 could now be used for the President's expanded mili- tary program. Mr. President, other strictly peacetime projects costing the heavily-burdened American taxpayers billions of dollars, should also be stopped during the time the taxpayers are being called upon to pay for the big military program. ECA FUNDS DIVERTED INSTEAD OF HIGHER TAXES The $3,000,000,000 which we could save from ECA would be a big start. Wecan save more money elsewhere in the bud- get expenditures without havinz to in- crease taxes. It is well known and the statement appeared in press dispatches during the past few days that the actual estimate of the Armed Services for fight- ing the Korean war is about $5,000,000,- 000. PEACETIME DEFICIT Apparently the remainder is for prep- arations elsewhere, except that the Presi- dent does need probably from three and a half to five billion dollars to cover up his peacetime deficit, which has not been mentioned since the Korean war began, or, rather, since the President said we were pursuing a police action in Korea. ONE BILLION TWO HUNDRED AND FIFTY MILLION DOLLARS MILITARY ASSISTANCE TO FOREIGN COUNTRIES Another $1,250,000,000 could be found in the appropriation for military as- sistance to foreign countries. That money could be better spent on our own military preparations, ECA COUNTRIES’ LOYALTY QUESTIONABLE I doubt if most of the countries re- ceiving our assistance would come to our XCVI-—652 CONGRESSIONAL RECORD—SENATE aid. As a matter of fact, in the present emergency, one after another of the countries has said, “Sorry, we cannot send our men, Some of the things you gave us, maybe, but not our manpower,” Further support of the position which the junior Senator from Nevada takes in this matter may be found in the title of the original ECA statute, Public Law 472, Eightieth Congress, chapter 169, second session. ECA NOT CONSISTENT WITH STABILITY OF UNITED STATES After reciting the things we are to do for the ECA or Marshall plan countries, it states: And consistent with the maintenance of the strength and stability of the United States. I submit that the continuation of aid under the Marshall plan, or ECA, of from three to five billion dollars a year, while we are preparing for war, is not con- sistent with the maintenance of the strength and stabilitly of the United States. Further, section 101 says: Thi3 title may be cited as the Economic Cooperation Act of 1948. PRESENT RECOVERY STATUS OF ECA NATIONS— NOTE OF RECOVERY Economic cooperation for what? To expand peacetime facilities. All the argument and controversy about ex- panding the peacctime industrial facili- 10829 tics in the face of war preparation may be disregarded. I should like at this time to submit for the Recorp a table showing the re- covery of the ECA nations, All ECA nations show a 100-percent or greater recovery, on the basis of the 1937 percent industrial index, with the exception of Belgium, which shows a 95-percent re- covery, Germany bizone, 95 percent, and Greece, 97 percent. The recovery of the remaining countries goes up as high as 148 percent, as in the case of Sweden. The United Kingdom's percentage is 124, The percentage of recovery from 1946, the year following the year, to 1947, and from 1947 and 1948, prior to the passage of the Marshall plan, was at about the same rate of recovery as from 1948 to 1949, end during 1949 and the first 3 months of 1950 under the Marshall plan. In other words, there is no clear accelera- tion of the trend of recovery after the Marshall plan was adopted. However, regardless of what the effect of the Marsha!l plan may have been— and I intend to say more about that dur- ing the course of my address—Marshall plan countries are on an average approx- imately 120 percent recovered over the 1937 industrial index. I ask unanimous consent to insert the table in the Reconp at tuis poin. in my remarks, There being no objection, the table was ordered to be printed in the Recorp, as follows: ECA nations—Index numbers of industrial production—1937=100 (except where othere wise noted)—Annual, 1946, 1947, 1948, 1949, and latest monthly figure RECOVERY OF THE ECA NATIONS SINCE 19¢6 As of May 5, 1950] Austria... Belgium. . Denmark. , Frame 2. 0. oe seen eee eee ce ee ee tee 73 Germany bizone.....-------.------------- 154 Greece... Latest 1947 1048 1449 | monthly Date figure . 61 a M4 114 | December 1949, RG 93 49 8 Do. 118 120 Ws7 145 | February 1950, 87 402 2 119 | January 1650. 40 oO 589 #05 | December 1949. 67 73 87 07 To. 3 10 4135 138 | ‘Third quarter 1949, es 8 mw 108 | January 1960, a0 (‘) 114 168 Do. +) 4 127 135 Do. 115 iM 132 5 Do. 341 149 (0) 148 | December 1949. 18 100 116 124 | January 1950, 1 Not available, 2 Base 1036— 100, § Federal republic, 43 quarter average, Fource. Statistical Bulletin of the United Nations, April 1050. HIGHER TAXES FIRST THOUGHT OF THE PRESIDENT Mr. MALONE, Mr. President, in an editorial in this morning's Wall Street Journal appears a very interesting com- ment on how to raise the money required to fight a war. I quote the editorial in part: It is characteristic of the way we have been induced to think that the first reaction to the “pay as we go” suggestion is higher taxes. And perhaps they will have to come; but higher taxes are not the way to start. The start should be cutting expenditures, If Congress began now to consider a tax bill—and it has every wish to postpone it— the country would be half through the cur- rent fiscal year before the new taxes could be collected. But by cutting down expendl- tures the came result of balancing Treasury receipts and expenditures kegins imme- diately, The serious implications of Korea have been apparent for some days. Yet so far as we know there has been no indication from Congress that anything has happened to change the Government financial outlook. Instead, Congress seems to take the attitude that it is perfectly sound to add more ap- pendages to an overgrown Government establishment. Mr. President, it seems our first reac- tion in Congress unfortunately is to add to expenditures and to raise taxes. To many, is is a very simple way to carry on the Government business.
10830 THE ECA $3,000,000,000—-HOW USELESS Mr. President, I now desire to show for the Recorp exactly where the ap- proximately $3,000,00,000 is located, The direction of this expenditure could easily be changed so that the money would go for national defense, instead of our having to raise taxes while creating more peacetime business in the Marshall plan countries. Mr. President, the following table shows the conditions of the ECA appro- priations up to date: Spent Apr. 3, 1948, to June 380, 1948 ..0.--------2-n eee ee $738, 500, 000 Spent July 1, 1948 to June 30, 1949 (1949 fiscal year) __.-. 5, 1'70, 800, 000 Spent July 1, 1949 to June 30, 1950 (1950 fiscal year)... 3, 692, 080, 000 Total gent to June 80, 1950 ~...--..-------~ 9, 501, 890, 000 Spent July 1 to July 23, 1950. $24, 410, 000 8, 525, 800, 000 | ee Carry-over from 1950 fiscal... 277, 000, 000 New appropriation for 1951... 2, 700, 000, 000 Available for 1951 fiscal...... 2, 977, 000, 000 Less amount spent since July 1.2222... ee en 24, 410, 000 Leaving available now....... 2, 952, 690, 000 AMOUNT AVAILABLE So, we can see that there js approxi- mately $3,000,000,000 available for na- tional defense as of today. Mr. LANGER. Available for what? Mr. MALONE. Available for anything Congress desires to do with it. The taxes are levied and the appropriation is made, and the money is lying there. In further answer to the distinguished Senator from North Dakota, a simple amendment to the act by the Senate and the House, signed by the President, would direct where the money should go, where it should have gone long before. Mr. President, I have here a table showing the total procurement authori- zations for ECA by countries, and I ask unanimous consent that the table be printed in the Recorp at this point. There being no objection, the table was ordered to be printed in the Recorp, as follows: Purchase approvals, total $445, 561, 000 490, 902, 000 Denmark....-....------= 208, 774, 000 France... --.-.--------- 2, 006, 107, 000 Total by country, as of July 19, 1950: 898, 837, 000 362, 826, 000 15, 415, 000 134, 603, 000 1, 071, 020, 000 101, 472, 000 TTA, 878, 000 195, 581, 000 $2, 129, 000 96, 711, 000 20, 509, 000 108, 028, 000 United Kingdom......... 2, 567, 753, 000 Total, Europe .........- 9,625, 800, 000 Mr, MALONE. Mr. President, I ask unanimous consent to have printed in the Recorp at this point a table showing CONGRESSIONAL RECORD—SENATE the appropriations for military assist- ance to foreign countries. There being no objection, the table was ordered to be printed in the Recorp, as follows: Military assistance pact Fiscal 1950....-..---------- $1, 000, 000, 000 Plus Turkey, Greece, Korea, 359, 000, 000 wiseal 1951 (including Tur key, Greece, Korea, etc. a 1, 222, 500, 000 Mr. MALONE. Mr. President, on June 20 the New York Times outlined that the second-year military assistance to na- tions resisting communism was approved by a joint vote of 12 to 0 in the Commit- tee on Foreign Relations and Armed Services Committee. I ask unanimous consent to have a portion of the article inserted in the Recorp at this point. There being no objection, the excerpt was ordered to be printed in the REcorD, as follows: As approved by the committees the mil!- tary aid bill would authorize $1,0C0,000,000 for the North Atlantic area of Europe. In addition, there would be a release of up to 250,000,000 more of excess military equip- ment. Besides, an estimated 214,000,000 of funds appropriated for the first year of arms aid could be carried over to the second- year program. AMERICANS HAVING DIFFICULTY MAKING ENDS MEET Mr. MALONE. Mr. President, the American taxpayers are heavily bur- dened. Washington does not seem to understand that the great majority of Americans are having difficulty making ends meet. The American people should not be expected to carry on their backs these foreign nations while carrying the war load. The ECA shoula be ended now. As & matter of fact, the ECA Act itself pro- vides that assistance be “dependent upon continuity of cooperation among coun- tries participating in the program.” They are not cooperating. ECA money has been misused and wasted. We have been informed of its financing night clubs and all kinds of useless things. ECA BUILDS FOREIGN COMPETITION WITH AMER- IcAN LABOR AND INVESTMENTS-——ARMS RUBSIA ECA has been used to build up for- eign industries, which are enabled to compete on un unfair basis with Amer- ican industries. ECA has been used as a blackjack, its regulations twisted to fit almost any purpose at the whim of its key officials. ECA has been used to arm Russia, The junior Senator from Nevada inserted in the Recorp a long list of potential war materials which we ourselves sent to Russia. He also inserted in the Rc- ORD @ list of 96 trade treaties between the iron-curtain countries, including Russia, and the ECA countries receiving our aid. With ECA help, Russia has been receiving crude and semifinished steel, locomotives, flat trucks, mobile Diesel electric generators, ball bearings, tool steel, heavy construction equipment, and other war materials. Mr. President, I ask unanimous con- sent to insert in the Rzcorp at this point a dispatch dated July 24, from the Wash- JULY 24 ington Post showing public reaction to financing the ECA while the European countries are trading with Russia: There being no objection, the dispatch was ordered to be printed in the Recorp, as follows: Wur? The Russian-made tanks, guns, planes, and bullets being used to maim and kill our boys in Korea were paid for out of the pockets of Americans. Each and every one of us paid our share via taxes. The Marshall-plan nations have 96 trade treaties with Red Russia and her cohorts, As per agreement under these trade treatics, the Communist nations received ball-bear- ings, precision tools, barbed wire, machine tools, rubber tires for trucks, engines for trucks and planes, rolled and plate steel, aluminum, lead, iron, copper, brass, locomo-~ tives, aircraft, ships, etc, Mr. MALONE. The junior Senator from Nevada inserted in the Recorp on January 24, 1950, several tables showing materials being sent to iron-curtain countries. Previously on March 5, 1948, this senator inserted in the ConcREs- SIONAL ReEcorpD, volume 94, part 2, page 2196, a table showing potential war materials being sent to Russia by Marshall-plan countries, and also in the CNGRESSIONAL Recorp, volume 94, part 2, on page 2205 a list of potential war items which the United States had sent direct to Russia following World War II. Mr. President, I ask unanimous con- sent to insert in the Recorp at this point the Senate joint resolution which would stop American aid and assistance to Na- tions which were assisting Russia, the jron-curtain countries, or any Commu- nist countries: There being no objection, the joint resolution was ordered to be printed in the Recorp, as follows: Joint resolution to prohibit financial aid to any foreign country engaging in trade with Russia, her satellite countries, or any other area dominated or controlled by Russia Whereas one of the alleged basic purposes of the Marshall plan is the restoration or maintenance in European countries of prin. ciples of individual liberty, free institutions, and genuine independence through a joint program based upon self-help end mutual cooperation; and Whereas Russia and other Communist dominated and controlled countries and areas have refused to participate in such joint program, and Whereas Communist actions have en- dangered world peace; and Whereas certain participating nations un- der the Marshall plan by trading with Russia and other Communist dominated and con. trolled countries and areas and through nonaggression pacts and treaties are vio. lating the basic principles of the Marshall plan and are aiding and fostering commu- nism in other areas of the world through furnishing the necessary equipment, ma- chinery, and supplies to consolidate Com- munist gains in eastern Europe and in Asia; and Whereas such nations are furnishing Rus. sla and the Communist areas necessary equipment, machinery, and supplies for world war III; an Whereas it is the sense of the Congress and the basic policy of the Marshal) plan and its enabling legislation that assistance to any participating country which fails in any way to meet its obligation to sustain and strengthen the principles of individual liberty, free institutions, and genuine inde.
1950 pendence, throvzh cooperating with such Communist nations and areas, should be terminated: Now, therefore, be it Resolved, etc., That on and after the date of the enactment of this Joint resolution no financial ald shall be given by the United States or any agency or officer thereof (whether by loan, grant, lend-lease, or in any other manner) to any foreign country which engages in trade or commerce on or after such date with Russia, her satellite countries, or any other Communist domi- nated or controlled area in any other coun- try. Exc. 2. It is the sense of the Congress that no moneys shall hereafter be appropriated and no loans shall hereafter be made and no equipment or supplies of any kind shall be furnished to any nation engaging in such trade or commerce or permitting its na- tionals to do so. ENGLAND SHIPPING WAR MATERIAL TO COMMUNIST CHINA Mr. MALONE. Mr. President, in addi- tion to the help the ECA nations have been to Russia and to the iron-curtain countries in arming for the third world war—this police action about which the President talks—we have the spectacle of England still shipping all kinds of raw materials into Communist China, which are finding their way up into Korea, not only with no diminution, but, in fact, with an increase in their trade. We also have the spectacle of an order from our own President stopping any opposition to such shipping by Chiang Kai-shek’s Na- tionalist troops through the order for the Seventh Fleet to stop Nationalist China from opposing the Reds, That was the first order sent out. JCB OF DIPLOMATS-—KEEP US OU™ OF WAR I should say that the Senate should take some notice of what is going on. The State Department seems to have temporarily given way to the armed serv- ices. There is an editorial in the Daily Mirror of New York, under date of June 26, which I should like to read, in part: It is the job of our diplomats to keep us out of war. War begins where diplomacy fails. Our diplomacy has so miserably failed us in the Far East) by its acquiescence to the Communist conquest of China~amounting almost to approval—that it has brought upon our people and the world this crisis. Will the diplomats want us to go to war now to pay for their mistakes? We don’t think they will get away with that. The people are well aware of our fail- ures of statesmanship and are not disposed to erase them with American blood. But we are on the spot nonetheless, ‘WE WILL WIN THE WAR OR FOLICE ACTION AS THE PRESIDENT CHOOSES 10 CALL IT Mr. President, so far as I know, there is not disposition on the part of any- one in the United States Senate to rcfuse to follow through and to win the Korean war, or the police action we find our- selves in at the instigation of the Fresi- dent of the United States, and to do everything possible not only to win it, but to win anything that is necessary. But, Mr. President, I submit again it is not necessary to continue peacetime as- sistance for industrial growth in foreign nations during wartime. You cannot do both together, they are inconsistent. Peacetime industrial growth in 16 for- eign nations shows approximately 120 CONGRESSIONAL RECORD—SENATE percent recovery on a 1936-37 index, while we are preparing for this war. SHIFT IN BRITAIN’S POLICY SUPPORT Mr. President, the New York Times of today, July 24, carries a very interesting dispatch, dated London, July 23: A prompt shift in the policy of the At- lantic community—from economic recovery to military defense—was being forecast here today as a result of the alarm sounded by the aggression in Korea. While expressing confidence that the Korean conflict would not lead to another war, Jchn Strachey, British War Secretary, said tonight that such acts of aggression inevitably compelled the western nations to consider whether they should not devote more of their productive resources to their own defenses. Mr. Strachey, it will be remembered, is the man appointed to head the na- tional defense of his country, but to whom could not be entrusted the atom bomb secret. In other words, war se- crets could not be entrusted to this man, but nevertheless he was made the head of the national defense organization of Great Britain. Further quoting from the New York Times dispatch: Any resources that might be diverted, he added, could “only come out of the re- sources which for 5 years we have devoted to reconstruction tasks.”’ That, Mr. President, is what I am speaking of. I am suggesting that we take the $3,000,000,000 appropriated by the Congress of the United States for use in peacetime industry in Europe, and devote it to our own national defense or- ganization. Reading further from the dispatch, I quote an authority in London: “Public expenditure of a type calculated to improve our well-being or to attract dollars will have to give way to expenditure on air- craft, tanks, and guns,” Mr, Crump pre- dicted. “Taxation will rise rather than fall. Inflation will become more and not less severe, Commodity shortages will reappear and a return to rationing and control ts now a distinct possibility.” In the same newspaper George Schwartz said that “first of all the government can and must divert some of its own expenditures” and call upon private enterprise to do the same so that money may be used for defense. THE WAR IN KOREA Mr. President, for the purpose of the ReEcorp, to show how much money we have expended in the past 5 years on the national defense organization, I read from a Washington Times-Herald edi- torial of June 20, as follows: Since the opening of that conflict, Ameri- can forces have been driven steadily back. American tanks have been no match for So- viet tanks operated by North Korcan Com- munists. We are assured that improved tanks are in production, but none is yet in action. We learn, too, that the Air Force and Navy alr wings are down to 4,600 first- line ships, with 7,900 in storage. The per- formance of the services has not been good on the showing to date. TOTAL OF $89,000,000,000 FOR NATIONAL DEFENSE Yet, in the 5 years since the end of World War II, according to the reports of the secre- tary of the Treasury, Congress has voted @ total of more than 889,000,060,000 for na- tional defense. The appropriation for each 10831 of these years exceeded by many times all previous defense budgets in a peacetime year. The defense expenditures for these years were: 1946....----..-- weceeneen-. 842,961, 000, 000 1947_..-...----.--------- 11, 809, 000, 000 1948_....-.--.------.----. 10, 217, 000, 000 1949... - 11,519, 000, 000 1950_...-.-..----.--------- 12, 618, 000, 000 JOINT RESOLUTION-—-END HELP TO COUNTRIES HELPING RUSSIA Mr. President, it is necessary at this time again to revert to the effect of our peacetime help to the nations in the Eu- ropean area, On January 24 the junior Senator from Nevada introduced a joint resolution which called for the end of aid directly by this country to any Euro- pean country or any other country, that was in any way giving assistance or aid- ing the Communist areas, including Rus- sia and the eastern European countries. The reason for the introduction of the joint resolution was obvious. It was be- cause of the 96 trade treaties the junior Senator from Nevada has called atten- tion to several times on the Senate floor, the first time being in September of last year, when there were 88 such trade treaties in existence. NINETY-SIX TRADE TREATIES WITH RUSSIA AND IRON CURTAIN COUNTRIES All of those 88 trade treaties have been renewed or are in good standing now, and eight more such treaties have been added, making 96 in all. Mr. President, it is not necessary to name the treaties again or to go into the question of the material shipped un- der them, but there was a very serious question as to whether it was advisable for the United States of America to fur- nish this money and industrial equip- ment to build up the industries of the 16 Marshall plan countries, only in turn to have a large part of the processed and manufactured goods to reach Russia, and the iron curtain countries, on the frst bounce. MANUFACTURING-IN-TRANSIT RATE The Marshall aid simply moved to be & manufacturing-in-transit deal. The manufactured and processed material is still going into Russia and the iron curtain countries while my joint reso- lution is buried in a democratically controlled committee. I should say that no aid, military or otherwise, should go to any nation which is furnishing mili- tary equipment, or supplies, or equip- ment that can be used in a third world war against the United States of America, ARMED SERVICES UNITID Mr. President, I call attention to the fact that we have done everything pos- sible on the Senate floor and in the House to unite our fighting forces. Is it not time that we unite our allied forces and determine what nations in this world are our friends, what nations are going to be neutral, and what nations are go- ing to be aligned against us? We now know that nearly one-half of the world and its population is against us. OUR ALLIES I desire to call the Senate's attention to an excerpt from “Capital Stuff,” writ- ten by John O'Donnell, which appeared
10832 fn the New York Daily News and other newspapers on July 20, 1950. I read as follows: Take our good friends to the north. Canada has not yet called up any troops to fight in the Far East or to replace United States de- fense outfits in Alaska. It has sent three destroyers to help MacArthur, however. Canada’s Minister for External Affairs, Lester B. Pearson, makes the cool observation that the prospect of Americans now fighting alone in Korea must remind Canadians and En- glishmen of 1915 and 1940. In other words, thie is strictly a United States Army, United States Treasury, United States Congress, and United States GI show. Mr. President, I call attention to a further dispatch to the New York Sun- day News, dated July 23, under the head- line: “Make Others Pay, Die, Too, in War, Aussie Tells Yanks.” Maxe Orners Par, Diz, Too, In War, AUSSIE TELLS YANKS Syonry, July 22.—A wartime Australian Cabinet member said today the Americans should make it clear that “they are not go- ing to do all the paying and all the dying to save the rest of the world from com- munism.,” Arthur A. Calwell, a member of the Labor Party and former Minister of Immigration and Information, said the American people were entitled to feel “mad and bitter” at the failure of nations “living on their charity” to send ground forces to Korea. “UNANIMOUS FAILURE” “If I were an American,” said Calwell, “I would feel mad and bitter at the too unani- mous failure of all other member states of the United Nations, most of whom are living on the charity of the American taxpayer, to send ground forces to help the United States Army in Korea. “TI think I'd be demanding that the State Department line up the countries receiving Marshall aid and all others hoping to receive it and tell them while their resolutions of support make interesting reading, Americans are not going to do all the paying and all the dying to save the rest of the world from Communist domination.” ENGLAND WANTS TO BE NEUTRAL Mr. President, I should like to refer briefly to an insertion made in the Con- GRESSIONAL Record for March 4 and March 5, 1948, at a time when we were debating at some length, on the floor of the Senate, the question of whether there should be a Marshall plan, with- out going into detail, let me say that I quoted Mr. Bevin and Mr. Wilson, at that time, when they made it very clear that they wanted to trade with Russia, and wanted to remain neutral. They said they wanted to be “the bridgehead”—I use their exact language—between the Soviet Communist Government and the capitalist government of America. I quote further from my speech, as it appears in the CONGRESSIONAL RECORD as of that date: I think perhaps they are in a fair way of doing just that. Their interests are with Russia; they are primarily manufacturers of goods, as we are in this country, while Russia cen furnish the necessary raw ma- terials. BRITAIN-RUBSIAN TRADE TREATY At that point I inserted in the Con- GRESSIONAL REcoRD a trade treaty which had been made prior to that date be- tween Britain and Russia. I shall not take time to read that particular treaty CONGRESSIONAL RECORD—SENATE into the Recorp at this point; it can be found in the ConcressIonaL Recorp for that date. However, the first item appearing in that trade treaty is 1,100 locomotives, which the United Kingdom was to furnish the U.S. 5S. R. Mr. President, the second item is 2,400 trucks, or what are called trucks in that treaty; we call them railroad cars. Also included in the treaty are items for excavators, locomotives, Diesel-elec- tric generators, turbines—all kinds of equipment necessary to prepare for world war It. That is what Britain was agreeing to supply Russia with, at the moment we first adopted the Mar- shall plan. UNITED STATES MILITARY AID TO RUSSIA Mr. President, if any further evidence is needed, I would refer further to the CONGRESSIONAL REcorv for March 4 and March 5, 1948; and I invite special at- tention to a table which appears at that point in the CONGRESSIONAL ReEcoRD, showing the military aid provided to Russia by us prior to December 31, 1946. I shall not read all of that table; it is available to anyone who will read the CONGRESSIONAL ReEoorD. However, the fact is that we were shipping materials to Russia, to permit her to arm for world war III. The materia)s supplied to So- viet Russia after V-J day, and up to De- cember 31, 1946, included machine tools valued at $40,000,000; steam locomotives Russian gage, valued at $30,000,000—and all these figures are given in round num- bers; generator sets; cranes, derricks, hoists, etc.; electric rotating equipment; marine engines; pumps; crushing equip- ment; valves and fittings; gas-producing equipment; secondary metal-forming machinery; Diesel-electric locomotives; industrial trucks and tractors; fan and blower equipment; power-transmission equipment; power-conversion equip- ment; rolling mills and equipment; mine and quarry machinery; insulated wire and cable; and so forth, and so on. Mr. President, we are not entirely guiltless in this matter. At that time those nations were saying that of course they would not furnish Russia or her satellites with materials which could be used against us in a war. AID FROM OUR ALLIES In that connection, let me read an article appearing in the New York Daily News of July 22, 1950: . Boxrivia Orrers UN 80 Orricers Bolivia offered 80 officers of its regular army to the UN last night to reinforce Gen- eral MacArthur in Korea—and thus was the first UN member to make a definite prom- ise of ground troops in response to Secre- tary General Trygve Lie’s plea for help. Shortly before the Bolivian message reached Lake Succeas, Canada offered a long-range air transport squadron with ground crews. Earlier, Lie said there were no offers of ground support among replies from 9 of the 562 member nations. He listed them as France, Sweden, Denmark, Norway, Greece, Argentine, Brazil, Peru, and the Philippines, Mr. President, as of July 22, the United Nations had not heard from the other countries, I say that is further evidence that we should review the peacetime industrial JULY 24 help and peacetime industrial growth of the 16 nations In Europe which already have reached a development of approxi- mately 120 percent of their dtvelop- ment, on the basis of the industrial index for 1937. OUR SEVENTH FLEET STOPPED NATIONALIST CHINA OPPOBING ENGLAND-COMMUNIST TRADE Mr. President, let me read now an editorial appearing in the New York Daily News for July 22, 1950: Nice Gesture ror CLEMMY Speaking in the House of Commons Thursday, British Prime Minister Clement Attlee voiced a few kind words for the United States. President Truman, said Mr. Attlee, was showing high purpose and resolve in the Korean affair, and the Labor (Soctalfst) Gov- ernment is considering what it can do to match the Truman magnificance. Attlee, however, failed in this speech to get down to brass tacks and say what if anything his government intends doing. Ground troops to help our men in Korea are out. Britain's far eastern fleet is cooper- ating with our seventh; but those ships were in that neighborhood when the shoot- ing started, so their help is costing England nothing but the expense of ammunition and what planes may be lost in carrier strikes over the Korean peninsula. Here's a suggestion for Clement, if he is as anxious as he says he is to help us out: Why not release all claims to Marshall- plan aid for Britain in the next year? About 8687,000,000 worth of such help ts earmarked for the British. That isn't hay. If it were to be lifted off the United Stutes taxpayer's back, the relief would be more than welcome. Sir Stafford Cripps, Chan- cellor of the Exchequer (like our Secretary of the Treasury), has been bragging of late about how healthy he has made Britain's gold and dollar reserves. Here's a chance to make a gracious and solidly helpful gesture in Uncle Sam’s direc- tion. Do we hear an answer from the Right Honorable Mr. Attlee? Mr. President, we now have ordered our seventh fleet to do something which the British fleet in the Far East could not do, namely, stop the Nationalist Chinese troops from interfering with the commerce between Britain and Commu- nist China—commerce made up of fab- ricated goods and supplies which now are finding their way into Northern Korea, to be shot at our American boys in that area. I suspect that some of the mate- rial can be found still bearing the British trade-marks when our boys catch it in their bare hands in Korea. So our fleet ts stopping, for the first time, the interference which the British fleet up to now has been unable to stop, although for months it has been trying to stop it. TWO TOP REASONS FOR STOPPING ECA AID TO EuROPE Mr. President, there are two reasons why we should cancel further ECA help to such countries. First of ail, we should cancel any further ECA help to any na- tion in the world which is helping Com- munist nations, as the 16 Marshall plan nations are helping the Communist countries at this time, and have been helping them since prior to the passage of the Marshall plan. They still are help- ing the Communist nations, Mr. Presi- dent, including China. Those 16 Mar- shall-pian countries have sent and are
1950 continuing to send to the Communist countries ball bearings, heavy industrial equipment, road equipment and machin- ery, tool steel, electrical supplies, loco- motives—exactly the material needed for war. PEOPLE HARD PRESSED TO MEET TAXES There is the added reason that we ourselves are now in a war, and we need the money. Instcad of talking casually about raising taxes on our people, many of whom are unable to stand increased taxes, we should stop and realize that we now have available, as I have always said, an unexpended balance of $3,090,- 600,000 for ECA, in the case of the 16 Marshall-plan countries which, as I have already said, have developed their peace- time productive capacity to about 20 per- cent in excess of what it was in 1937, according to the index for that period. STOP EXTRAVAGANCE—WE ARE FIGHTING A TOUGH ENEMY £o let us stop this foolish extravagance, add that $3,000,000,000 to the necessary expenditures for our military program. Mr. President, I should hke now to touch on an article in this morning’s Wall £treet Journal by Ray Cromley, in which he makes a prediction, to which it might be well to listen This 1s not the first time I have heard about it. The junior Senator from Nevada has heard many discussions of the length of the war with China, the iron-curtain coun- tries, and Russia together Of course, our own organization in the State De- partment saw to that. Every move made, the whole pattern, from the De- partment of Commerce on through to the State Department, pointed toward Russian control of China and Korea. Some of their advisers went so far as to write a letter advising it—‘“Lose Asia. Lose Korea” A good dose of commu- nism would be good for Asia, THE TRUMAN WAR Now, Mr. President, the battle is on, each Democrat has his particular war— Woodrow Wilson, 1917, Roosevelt, 1941, and now Truman in 1950 Mr. Cromley says about morning: Get yourself set, You've only seen the beginning of President Truman’s new mill- tary-aefense program. “We're making plans,” says one alde— Thai is, one aide to the President— “for a new Truman policy to police the world and keep the peace and hold the Russians in And we're going to have to get the men, the guns, and the goods to do the job.” Further along in the article he says: If Congress votes the powers to carry out this new world-police policy, officials here predict: It would mean belt tightening for you— and more controls for you and your business for many years to come. No one knows how long It would mean taxes maybe 25 percent or more greater than now, indefinitely. It would mean shortages—and maybe some price controls and rationing—for years. And it would mean the ever-present danger of war for a long time. This new peace-enforcing policy was de- cided on by Mr. Truman and his assistants because they are convinced that Russia is it this CONGRESSIONAL RECORD—SENATE going to try again what she is trying in Korea, One official says. “It's almost certain there'll be another Korea. Maybe the attack will come in Iran or Indochina or Greece or Germany—or we don’t know where. But bet your money they'll try again. And when we slap them back there they'll try still again. So we're going to have to keep this job up for a whale of a long time.” Another official calls it the beginning of a “100 years' war.” He doesn’t mean world war III is about to begin—but he does mean this policing Job will last many years. Mr. President, our State Department gave Manchuria to the Russians, gave Berlin to the Russians, without means of ingress or egress. Their advisers recom- mended that we lose China and Korea. We could have, by using any sense in our foreign policy, delayed any show- down with Russia for many years, per- haps a generation or more THE EUROPLAN DEFENSE SITUATION Mr President, in September 1949 the junior Senator from Nevada stated that according to the experts, including one of the greatest generals in Fiance, it would cost from $50,000,000,000 to $100,- 000,000,000 and would take from 12 to 15 years to arm Europe for a decent defense against Russia, 1f she started to roll across Europe. At that time the junior Senator from Nevada said the best esti- mates indicated that it could mean a 20-year war. Mr. President, the former French Pre- mier, Paul Reynaud, says now that the “situation today in Europe is worse than in 1939” Mr President, I ask unanimous con- sent to insert in the Recorp at this point a Washington Post dispatch dated July 21, 1950, a statement by Paul Reynaud. There being no objection, the article was ordered to be printed in the Recorp, as follows: Re: Naup Says EUROFEAN Perit Is Worse Now THAN IN 1939 Lonpbon, July 20--Former French Premier Paul Reynaud said today “the situation in Europe tcday is worse than in 1939" Reynaud, who arrived here by air for a meeting of the united Europe movement, warned that “an aggressor’ could drive westward acioss Europe to the English Chan- nel without hindrance He said only fear of the atomic bomb acted as a deterrent against such aggression “We shall have to be very careful,” he said TELL THE FOLKS THE TRUTH Mr. MALONE. Now, Mr. President, the junior Senator from Nevada is not backing away from a 20-year war. If that is necessary, let us have it. But let us tell the American people the truth. The American people still are not being told the truth. It may also be remem- bered that on the floor of the Senate, in speaking during the debate on March 4 and 5, 1948, when the $17,000,000,000 program was advocated by the great Mr. Bevin, of England, after the great Gen- eral Marshall had put a little paragraph of four or five lines in his Harvard speech, hardly knowing what they mean. Mr. Bevin, in England, took it on the first bounce, and within 30 days told us what it was going to cost us That was very fast work, indicating that it was a pre- pared statement, 10833 OBJECTIVES OF ECA CONFUSED Mr. President, we went into this thing with our eyes wide open. We said it was to stop communism, to rehabilitate industry, and to feed hungry people. We said all that in one paragraph and to try to make some sense out of it was to be accused of helping Stalin The mere fact that 1t helped to arm Stalin for world war III was not important to the State Department. The junior Sen- ator from Nevada said at that time, “Let us break it down.” That it 1s impossible to talk about feeding hungry people, stopping communism, and rehabiltating industry in one paragraph, in one breath. To do that merely sets us up for an un- willing victim of a great propagandist machine—one of the greatest propa- ganda machines that was ever built in any country—the State Department. Mr President, the junior Senator from Nevada has had some experience in re- habilitating industry, so he took occa- sion to go into Europe, particularly to the ECA countries, and look into this industrial rehabilitation that was said to be needed He went to the Ruhr, with its coal mines and its steel mulls, to Fiankfurt, with its chemical plants, to Birmingham, England, with its steel and coal mines He examined also the in- dustries of other countries. When the junior Senator from Nevada returned from that trip he suggested, “Let us break 1t down Let us determine the area. Let us name the nations which we must currently protect for our own ultimate safety’? Only the Presi- dent of the United States could do that, because he 1s charged by the Constitu- tion with the duty of fixing foreign policy. Congress cannot fix foreign policy. Let him name the nations, after consultation with his National Defense Secretary and his Secretary of State, who should be entirely familiar with the weapons of offense and defense available to this country, let him name the na- tions of the world—in Europe, in Asia, in Africa, in addition to those in the Western Hemisphere whose integrity to- day 1s important to our ultimate safety. THE MONROE DOCTRINE Then, Mr President, after that deter- mination is made, let us spread the Monroe Doctrine which has been in effect for 126 years and which kept us out of a major war for 75 years. The Monroe Doctrine declared in effect that an at- tempt by any nation to extend its system of government into the Western Hemis- phere would constitute an overt act against the United States of America. It would have been easy to extend that doctrine to cover nations whose areas and whose integrity are important to our ultimate safety. Let us build a national defense organ- ization, spearheaded by an Air Corps, so that every nation in the world will know that we can enforce the Monroe Doctrine and enforce the policy we adopt. BUILD DEFENSE ORGANIZATION--SPEAPHEADED DY AN AIR CORPS Mr. President, while the junior Sena- tor from Nevada is on that subject, at that moment there were two reports available to the President of the United
10834 States and to the Congress. What were they? The President appointed one aviation committee, and Congress ap- pointed another. They both rendered their reports, and they were both good reports. They agreed that an expendi- ture of $16,800,000,000 over a period of 5 years should be made. To do what? To provide a striking force of 34,000 planes. More than half that time has expired, and what do we find? We find the President, up to 90 days ago, object- ing to a 70-group Air Force. We find him cutting down on appropriations which Congress had made, with no idea of where we are going, what we are going to defend, and no specific information ever leaked out, so far as I know, to the American people as to what we would fight about and what was necessary for our own ultimate safety in the entire world. TIME TO TELL THE TRUTH So, Mr. President, we are now getting ready for a 100-years war, according to our planners. We are getting ready to protect the entire world by police action. Was it not the time to tell the American people the truth when we debated the Marshall plan in March 1948? FEED HUNGRY PEOPLE—LOAN TO PRIVATE INDUSTRY Let me go on with the other two objec- tives which the junior Senator from Ne- vada mentioned at that time. First, let us name the nations and know what we are doing, and let us build a national defense organization to enforce our policies. The second thing was to feed the hungry people within the area important to us—emergency-hungry people, to the extent that we can without injuring our economy, not all the hungry people in the world, because in China, India, and many other areas the people have been hungry for 5,000 years. They have lived up to the food supply and died off to it for a long time. The third thing. Mr. President, Is re- habilitating industry. Let us take a bil- lion dollars, the junior Senator from Nevada said at that time, March 4-5, 1948, and put it into the World Bank and see how far it will gd in loaning money to specific private industries within the same area, under RFC rules. Do not loan an Englishman, a Greek, or a Frenchman money on less stringent terms than it would be loaned to a GI in this country. Loan it on security. The RFC was created to take less security than a private bank loan, but let us take the security we can get. Had we followed that policy, we would not have loaned a billion dollars in 5 years, in my humble opinion. PRIVATE INDUSTRY DID NOT WANT GIFTS I saw the industries. The proprietors of most of them took the attitude of a stee] man in Birmingham, England. I went through his steel plant as one of the plants inspected. He was very proud of his improvements. He had invested $12,000,000—£3,000,000—in new im- provements. I said, “Where did you get the money—from the Bank of England?” He said, “Oh, no. I got it from local ans,” CONGRESSIONAL RECORD—SENATE JUST KEEP OUT OF MY HAIR I said, “Do you not want Marshall plan money?” He said, “I just want them to keep out of my hair.” That was the general impression all over England and all over the rest of the world where nations wanted to main- tain private industry. To go on with this dispatch, Mr. Prest- dent, it contains some very good thoughts which the American people would do well to ponder. I read further: This sort of thinking may be right or it may be wrong. The important thing 1s that it dominates men in policy-shaping posts here—the political and military planners. They don't expect total war with Russia now. But they expect fringe warfare to go on sporadically for a long time—maybe all our lives. Remember the moods of the capital are often mercurial. Things could happen to alter this mood, That is something which many people have hoped for for a long time. It is the Washington atmosphere. Nowhere else could such warped thinking dominate a government. I read further: Another expert calls the program “enforc- ing a Pax Trumana.” He says, “Its the same sort of world police job Rome had centuries ago—and Britain had in the 1800's.” That Pax Trumana—not the Korean war— is back of the President's starter request for $10,000,000,000 and war powers, his aides say. The military estimated Korean war needs at less than @5,000,000,000, it’s understood. SIPHON OF WAGES THROUGH TAXES Mr. President, another item in the Wall Street Journal of July 24, an Asso- ciated Press dispatch this morning, speaks of draining off excess buying, through taxes. Well, Mr. President, I remember when that idea popped up under the spenders of this administra- tion. The idea was that when we raised a man’s wages, we should raise his taxes and drain them off into the Treasury again so that we could again raise wages—the excess bein; the amount we raised his wages, so that he would not be a threat to the purchasing power of the community. That is a great idea, Mr. President, I should like to have time to follow through and see where we land with that kind of an idea, COLONIAL PROJECTS—-AFRICAN SLAVES Mr. President, in a dispatch in the New York Journal of Commerce this morning there 1s an outline headed “Colonial Project Pushed by British in Many Areas.” It goes on to give an outline of projects which the British are backing in Africa, long-range projects, to build up the income of the Empire. That subject was discussed by the junior Senator from Nevada on this floor approximately 3 weeks ago with refer- ence to furnishing the money which is being expended in Africa and in the Far East, to do what, Mr. President? To di- vide the Negro residents of Africa into slave divisions for the empire-minded nations—England, France, Belgium, and the Netherlands, In San Francisco we said that these small slave nations would receive help from the United Nations. In four anda half short years we changed around, and we are now backing Negro slavery in JULY 24 Africa and Chinese and Malayan slav- ery in the Far East. DO NOT NEED A RAISE IN TAXES BUT NIED ECONOMY AND CAREFUL WARTIME SPENDING Mr. President, in closing, I want to re- affirm the opinion of the junior Senator from Nevada that we do not need a tax increase at this time. What we need to do is to review the budget and examine the things we have been doing, forget- ting, for the time being, the argument that the ECA or the Marshall plan never did help our economy, never did figure in our ultimate safety, but it did estab- lish industries in those European areas to compete with our own industries through the free-trade policy established by the administration. But let us forget that part of it for now. We are interested in winning the war. One hundred and twenty percent is the average rate of recovery of those nations, if we wish to call it recovery, over the 1937 industrial index. We have $3,000,000,000 already appro- priated to be expended during the next 12 months. To do what? To raise in- dustrial peacetime capacity of those countries even higher. In the face of war, let us take the $°,000,000,000 and at least subtract that amount of money from the $10,000,000,000 requested. We shall find much more to make up the entire estimated $10,000,000,000 needed. LIVE BILLION DOLLARS, NOT TEN BILLION DOLLARS, NEEDED FOR KOREAN WAR As is well known, and as is mentioned ir. dispatches this morning, $10,000,000,- 000 is not needed for the Korean war. The armed services estimate that prob- ably less than $5,000,000,000 will be neeJled. It is easy to find the $5,000,000,000 without adding to the taxes of an al- ready overburdened population of the United States of America. As has been well shown through two world wars, once a tax is put on the books it is never repealed. It is just another burden to the taxpayer and we find additional peacetime uses for the money, once the emergency is ended. Mr. President, tomorrow the junior Senator from Nevada will show addi- tional money already appropriated and which can be made available for the national defense needs of this Nation, without raising taxes on an already over- burdened taxpayer, and everybody is taxed directly or indirectly, close to the breaking point. TEMPORARY WITHDRAWAL OF REPORT ON LOYALTY INVESTIGATION Mr, MUNDT obtained the floor. Mr. FLANDERS, I should like unani- mous consent that the Senator may yield to me without losing his right to the floor. Will the Senator ask for unani- mous consent that he may yield to me without his losing the floor? Mr. MUNDT. I shall be glad to yield to the Senator from Vermont provided it does not jeopardize my right to the floor. I do not know what the Senator from Vermont has in mind. The PRESIDING OFFICER. Is there objection to the Senator from South
1950 Dakota yielding to the Senator from Vermont? Mr. McFARLAND. For what purpose is the unanimous consent requested? Mr, FLANDERS, It is to take up a resolution now lying on the table, which reads: Whereas Report No. 2108, entitled “State Department Employee Loyalty Investigation” as printed and distributed on July 21, differs from the report submitted to the Senate on July 20 in certain important respects, particularly being called on the cover sheet a Report of the Committee; and Whereas it does not appear that the Foreign Relations Committees has adopted the report; and Whereas a false impression of the status of this report will be spread abroad by the cover which has been substituted since it was received by this body: Therefore be it Resolved, That said Report No. 2108 be at once withdrawn from distribution until the cover be replaced to agree with that covering the report as submitted. Mr. McFARLAND, I object, ORDER OF BUSINESS Mr, McKELLAR. Mr. President, will the Senator from South Dakota yield so that I may address an inquiry to the minority leader? Mr. MUNDT. I shall be glad to yield to the Senator from Tennessee, pro- vided I do not lose my right to the floor. Mr. McKELLAR. On Friday after- noon, when we were making no progress at all with the pending business before the Senate, namely the appropriation bill, I made the suggestion that we de- vote at least 2 hours a day to the con- sideration of the unfinished business. Objection was made. Later on it was suggested that the Senator from Mich- igan |Mr. Fercuson| was being called out of town, or some other good reason was stated, and that he would not have the opportunity to make the address that he wanted to make to the Senate. As I recall, I suggested to the Senator from Michigan that we meet at 11 o’clock today, to give him the opportu- nity to make his address, and I suggested further that after he had concluded his address we could proceed to the consid- eration of the bill before the Senate, which had not been more than referred to for 2 or 3 days. The result was that we made an agreement, I find no record of it in the CONGRESSIONAL Recorp. Iam rather astonished that the ReEcorp should show no reference to it. The agreement was made in the open. It was made on the floor. There is no rec- ord of it. Now I find that the whole day is to be taken up with speeches instead: of consideration of the appropriation bill. If the Senator from South Dakota will indulge me a little further, I should like to say that appropriations for our Gov- ernment, especially at this time, are very important. They are all in one bill, under a scheme that was suggested by Representative Cannon and agreed to by the House and the Senate. We must pass the appropriation bill. The Committee on Appropriations has done its duty. It has had the bill before the Senate for weeks. The bill has been before the Senate as the unfinished busi- ness for about 2 weeks. We have gotten CONGRESSIONAL RECORD—SENATE practically nowhere. I want to know what has happened to our agreement of Friday. Mr. WHERRY. Mr. President, there is no one in the Senate for whom the Senator from Nebraska has greater ad- miration or love than for the distin- guished senior Senator from Tennessee, the chairman of the Committee on Ap- propriations, I am sure if the distinguished Senator will examine the Recorp he will find that we did not enter into an agreement, We found that there were so many speeches still to be made that it would take at least all day Friday to complete those speeches. Mr. McKELLAR., The Senator from Michigan (Mr. Fercuson] had to wait until Monday because of that. Mr. WHERRY. That is correct. Mr. McKELLAR. Then I proposed the «.greement. I have carried out my end of it. It was proposed and accepted that at 12 o’clock today the Senate should take up consideration of the ap- propriation bill. Mr. WHERRY. Now, Mr. Presi- dent—— Mr. McKELLAR. ir. President, much as I think of my good friend from Nebraska, and much as I have enjoyed hearing the words he used in connection with me, I do not enjoy making an agreement with him. and having that agreement passed by. The Senator has passed it by. The Senator made that agreement. It has been carried out to the letter so farasIam concerned. The Senator from Michigan has made his speech. I think we should go on with tho pending business, Mr. President, is the acting majority leader controlling the appropriation bill? If he is, I shall be glad to sit down. I shall be glad to turn it over to him. Mr. McFARLAND. No. Mr. McKELLAR. The minority lead- er is constantly calling on the Senator from Arizona to make a statement. I want the appropriation bill to be passed. It ought to be passed. We ought not to sit here day after day and week after week without doing anything about it. We have the bill before the Senate. We are doing nothing about it. We have passed hardly a smidgen of it. We have passed a few items. We have had hun- dreds of amendments offered to it. I want to know whether or not we shall do anything about it. If we are not going to pass the bill, it ought to be sent back to the committee. Certainly the com- mittee ought not to be placed in the po- sition, after spending hour after hour, day after day, week after week, and month after month considering the bill, of having the Senate do nothing about it. , I want to disavow any neglect of duty on my part. I have been here every day. Although I have been ill, I have been here on my feet every day. I have done the best I could. I have done all I could to not waste time in trying to get the bill through. We have been making no headway at all. We could do as much in a half hour of uninterrupted work as we have - done on the bill in the past 2 weeks, 10835 Mr. WHERRY. Mr. President, will the Senator from South Dakota yield? Mr, MUNDT. With the same under- standing. Mr. WHERRY. I should like to make an observation. Iam in full accord with the intention and purpose of the distin- guished senior Senator from Tennessee, the chairman of the Appropriations Committee. I was sincere when I made my remark about the affection I have for the distinguished Senator. If the Senator will examine the Recorp, he will see that no agreement was entered into relative to a limitation of time, or when the Senate was to return to the consid- eration of the appropriation bill. We said that one more speech was to be made on Friday, and it was carried over until Monday. I said that I would do my very best to work out a unanimous- consent agreement along the line sug< gested by the distinguished Senator from Tennessee. Mr. McKELLAR. That is another re- markable thing about it, Mr. WHEIRRY. Mr. President, If should like to finish my comments, if the Senator does not mind. Mr. McKELLAR. The Senator may make any observation he wishes, but if it prevents the appropriation bill from being passed—— Mr. WHERRY. Mr. President, once again I will say that I have always made it a practice to respect my elders, and I shall not depart from it in this instance, especially with respect to the distin- guished Senator from Tennessee. To be perfectly frank, there was no agreement entered into relative to a limitation of time. The junior Senator from Nebraska has tried diligently to get a limitation of time, and the acting majority leader knows that to be the fact. I wish to re- mind the distinguished Senator from Tennessee that the report on the dis- loyalty investiration was injected into the consideration of the appropriation bill by the Senator from Maryland |Mr. Typincs]. Naturally, it is the privilege of any committee to do that. That is all right. ¢ The report was made by the chairman of the subcommittee. Other Senators engaged the chairman in colloquy, a number talked about the report, and on Friday other Senators desired to discuss it. The business at hand at that par- ticular time was the report, and it is still the business at hand, because many charges were made which are going to be refuted, and Senators have a right to re- fute them. Mr, President, I should like to say to the distinguished acting majority leader that I have done my level best to reach an agreement for limitation of debate on chapter VII of the appropriation bill, which is the pending chapter. I believe that after the Senator from South Da- kota shall have concluded, if we proceed with that chapter, we can finish it, but if it is impossible to finish it today, I am satisfied we will be able to gct a limita- tion on debate on that chapter, at least, of 10 minutes to each Senator who may desire to speak. There are two more speeches to be delivered on the so-called report, I be- lieve they should be carried over and