2564 as Switzerland, Sweden, Norway ' re- mained neutral, and will sell to both sides. I say, Mr. President, and I read from the debate in March 1948, at which time I said: It was made very clear by Mr. Bevin and Mr. Wilson that they wanted to trade with Russia— Understand, Mr. President, this was before the passage of the first Marshall Plan— and they wanted to remain neutral, they wanted to be the “bridgehead,” that was the exact word they used— I stood here on the Senate floor, two seats removed from my present seat, and I said that, 2 years ago, almost to the day— they wanted to be the “bridgehead,” that was the exact word they used, between the Soviet Communist government and the capi- talistic government of America. I think per- haps they are in a fair way of doing just that. Their interests primarily are with Russia, since they are primarily processors and manufacturers of goods, as we are in this Nation, while Russia can furnish mainly the necessary raw materials “RADE TREATY—ENGLAND WITH RUSSIA Now, Mr. President, at that moment I placed in the Recorp a trade treaty which had been made between England and Russia, prior to the passage of the first Marshall-plan legislation, in March 1948. That trade treaty contained as its first item 1,100 locomotives. It also in- cluded tool steel, electrical equipment, and all the other things they need. I was answered by distinguished Senators. Their debate is in this document, Mr. President. “Oh, no; no ECA director would allow that. He would stop it” That is what they said. He not only did not stop it, but there are 95 of those trade treaties in full force and effect now. I listed them in the Recorp in January 1950. I listed the trade treaties, and had the Public Printer reprint part of them, to show the nature of commodities listed in them. TWO MAJOR POWERS IN THIS WORLD Mr. President, we have now spent bil- Hons of dollars to contain Russia, or so we have loudly announced to the world; but we have never once communicated directly with Russia, or made any attempt to come to an understanding or agree- ment with her. It could be that Russia is just as scared of the A-bomb and the H-bomb as we profess to be. There are two major powers in the world today, Mr. President. There are not three, there are not five, as we said at San Francisco. I wrote a dispatch at San Francisco, at that time, which I be- lieve was in April 1945. The United Na- tions said at that time there were five nations I said in the dispatch there were not five, there were not three, there are but two, Who were they and who are they now? Russia and the United States of America. That is why I say, Mr. President, no other nation in the world can threaten the peace of the world except the United States and Russia; and we have not communicated directly with Russia. There are two major pow- ers in the world today. This is as true todey as it was when I made the state- ment in San Francisco in 1945, upon the CONGRESSIONAL RECORD—SENATE organization of the Unitcd Nations, when we made such great promises, none of which have we fulfilled. INDEPENDFNCE TO COLONIAL NATIONS We said we were going to offer inde- pendence to the colonial nations and to the small nations—under whose aus- pices? Under the auspices of the United Nations. Within four short years, Mr. President, we changed the policy com- pletely around. We are now advocating the great, bold, new program, to guaran- tee the integrity of the colonial nations, to hold them in bondage. Yet we are dealing with third parties. DEALING WITH THIRD PARTIES We are not even dealing through the third parties with Russia; only with second- and third-rate powers. What are we saying? We are going to contain Russia. So while we are containing Rus- sia and hauling the coal at an expense $400 or $500 a ton by airplane into Berlin, because our great ambassadors and our great diplomats had made the treaty at Yalta, giving Berlin to the Rus- sians, without providing any method of getting in or out of Berlin. Russia takes Asia while we haul coal in Eurepe. She takes China, and everyone knows she will take Asia when she gets around to it, unless we change our policy. So we are containing Russia, are we? Let us see what heppenzd Let us see what it adds up to. We have lost every diplomatic argument we have had since the close of World War II. As the great Will Rogers said, “Ve never lost a battle, but we have never yet won a conference.” We are talking loudly about containing the only other great power, but we have never talked directly with her or in any way discussed the great problem with the only other great power that can do anything about it besides ourselves. TWO COURSES OPEN Theie are only two courses open, Mr. President: First, to come to an agree- ment with Russia on the only question at issue, that of stopping her expansion, and agreeing upon a term of world peace, or naming the nations whose integrity we consider important to our ultimate peace and safety, in Asia, Africa, and Europe, and extending the long-estab- lished Monroe Doctrine, long understood and respected by foreign nations, to in- clude such areas, and to make it plain that any attempt by any nation to ex- tend its form of government into those areas will be considered to be an overt act against the United States, and would mean war, The traditional respect for the Amer- ican flag is at its lowest ebb throughout the world today. To regain that respect and to establish a reasonable chance of world peace, we must reestablish the proper principles and stability, at the risk of war, while there {s yet time. Now, Mr. President, I had not intended to meniion the International Fund, but I believe it is time, after mentioning some of the regular principles, the regular methods of siphoning the money out of the United States Treasury. In 1947, Mr, President, I named six methods of siphoning money out of the United States Treasury, all having dif- ferent names and different approaches, MarcH 1 but adding up to the same think. I now want to name eight methods of siphon- ing money out of the United States Treasury. EIGHT METHODS OF SIPHONING MONEY OUT OF THE UNITED STATES THEASURY First, by appropriations for elft loans by the Congress of the United States under the Mershall plan, now the ECA. Mr. President, this skips the UNRRA; it skips the $3,750,000,000 given to Eng- land directly; it skips the financing of several other trick organizations, all of which were going to stop all wars and economic dislocations dead in their tracks. I recall, Mr. President, that no one had ever communicated directly at that time with the only nation which can cause us any serious trouble nor have they yet made a serious attempt to com- municate with her. Second. Financing gift loans through the Export-Import Bank. Third. Financing gift loans through the World Bank. In passing, I might say that this 1s going on continuously, in addition to the sums which have been appropriated by the Congress. Once in a while they call on us to appropriate more money, mostly, however, for permission to sell stock to citizens of the United States or to any- one else who will buy. I predict, Mr. President, that within 5 years there will be a bill brought to the Scnate floor to make up to the holders of the stock of the World Bank the money invested in that bank through stocks sold and author- ized by the Congress of the United States. It has authorized the officials of the bank to give money away in gift loans No one is naive enough to be- lieve that any considerable percentage of the money will ever be repaid The citizens of this country have purchased the stock in good faith, as they would purchase the stock of any other bank, thinking the cashier would look over the loans. But we do it for another purpose, and these so-called loans are gifts in most cases’ So there will be a bill introduced to reimburse the stock- holders, and the Senate of the United States will vote for it. That 1s my pre- diction. Fourth The division of American markets among foreign nations through the administration’s three-part, free- trade program, starting with the 1934 Trade-Agreements Act, as extended. It is now suggested that the ECA Director and the Secretary of State place the re- sulting unemployed persons on the rehef rolls and pay them through a direct sub- sidy. Fifth. The International Trade Or- ganization, 58 nations with 58 votes, to which we would virtually transfer the right to fix our import fees and tarifts, and to fix quotas of production, includ- ing agriculture, minerals, wood and wood products, fuels, and manufactured and processed products for each of these oth- er nations. That is a fine organization, I would say, with 57 foreign votes against us Sixth. Point 4, the President’s “bold new program,” with more billions of dol- lars in an attempt to guarantee the in- tegrity of the colonial system for the empire-minded nations. Bulhons of dol-
1950 lars would be loaned in but not to the colonial nations. In other words, the money would be loaned for the develop- ment of nations for the benefit of the empire-minded nations, and not for the benefit of the colonial nations them- selves. It would guarantee the continua- tion of a system of slavery. Throughout the Far East and Africa, while Russia is promising the people freedom, we are at- tempting to revive the old system that is dead. Seventh. A great organization now pronosed by the ECA Director, Mr. Paul Hoffman, an organization within an or- ganization. He calls it the European Payments Union. A dispatch in the New York Journal of Commerce of this morning says: When American officials firet unveiled EPU a few weeks ago they stressed that it would provide a lever by which European govern- ments that are operating inflationary econ- omies could be forced to mend their fiscal and monetary affairs. Officials of the Organ- ization for European Economic Cooperation who are now in Washington say the same thing in a different way. The Payments Union, they point out, can prevent the sit- uation where a European country may be running excessive deficits in its trade with the other westcrn European nations. The preventive is to require steadily in- creasing payments by the debtor country in gold or dollars from its own resources. It is believed that if a European country must “pony” up gold or dollars from the compara- tively slim reserves prevalent throughout most of the ECA countries that country will shortly take steps to reduce its imports This dispatch goes on to say: The classic method of reducing an im- portant surplus, and of further increasing exports, 1s a devaluation of the country’s currency. Of course, that was denied on the Sen- ate floor in September when the Senate was debating the extension of 1934 Trade Agreements Act. When ECA Administrator Paul G. Hoffman first proposed the outline for European economic integration on October 31, he had this device in mind, although he only re- ferred to it as adjustments in exchange rates which would be worked out through the International Monetary Fund. The International Monetary Fund is under fire in another dispatch, because it is said that it has established what amounts to a block against any adjust- ment. I read from an article by Ysabel and Robert Rennie appearing in the Washington Post: Under the international gold standard there were no dollar shortages, no hard (1. é., undervalued) and soft (overvalued) curren- cies. The system was in a sense self-cor- rective. If France were to buy more from us than she sold, she would have to make up the difference by shipping gold. As gold flowed out, the gold value of the franc would drop, making American cotton, for example, more expensive to Frenchmen, and French wares cheaper to Americans. This would reverse relative demand, cause trade to flow in the other direction, and bring payments back quickly into balance. But this mechanism was replaced by the sovereign insistence of nations to set arbi- trary prices on their own currencies. Dur- ing the dopression, nations undervalued their moncy to stimulate exports; and, contrari- wise, in these postwar years they have over- CONGRESSIONAL RECORD—SENATE valued their currencies to make imports cheaper. LARGELY FICTITIOUS The low price of the dollar, which was set by the Europeans, has caused sundry embarrassments and distortions. At the of- ficial rate, European importers were willing to buy more dollars than the exporters would provide. Tne result was a persistent, clam- orous, and largely fictitious dollar shortage. Mr. President, I want to point out, in regard to the dollar shortage, that I have several times discussed it on the Senate floor. It is the greatest hoax that was ever sold to the trusting people of the United States of America. All it amounts to is overvalued European cur- rencies in terms of dollars, and when they cannot exchange them, get dollars for their overvaluation of their own cur- rency, they say they have a dollar short- age. Before the British devalued their money it was pegged at $403. No one of my acquaintance paid more than $2.60 for it for international exchange. When I was in Hong Kong in 1948, $1 would buy $6.10 of Hong Kong money, and $15 worth of Hong Kong money would buy a British pound. That made @ British pound worth ¢2.80. Only a Senator or some person traveling in Europe would pay more, because he would think he could not afford to take it at any cheaper raie on the market. That currency has now been devalued to $2.80, no one is paying more than $250 for it, and most people are getting it for $2. Possibly some persons get it for less than that. No one will buy the British pound valued at $2.80. Anyone would take a British pound at a price which could be exchanged for that amount of dollars on the Washington, New York, or San Francisco Stock Exchange or if our banks could exchange it at that rate. But it is impossible at this time. So, with their artificial devaluation, of course they are short of dollars. They simply want someone to make up the difference and when they will not do it they call it a shortage of dollars. It would be just like a housewife in Wash- ington going down to @ grocery store and saying, “I want 40 pounds of sugar for a dollar.” She may have been a very good customer at the store, but she would find herself out in the street pretty soon without any sugar. So she would go around the country complaining about the shortage of sugar. That is the same principle which is under discussion here. It is a farcc, a hoax, and a form of piracy. That is allitis. However, we in the Sen- ate help to sell it to the American people as a shortage of dollars. The Senate should at least know better. Now, Mr. President, I have already shown that the international fund is under fire because it has stopped up the only escape from an imbalance in trade conditions. In other words, by setting up this trick organization, we stop up the only escape there is. The only explana- tion that can possibly be offered for any of it is that the overvaluation is simply @n excuse to get someone to pick up the check. To pay the difference in the actual value and the overvaluation. Then, of course, they are making that much money on the transaction. 2565 However, it prevents forever the very thing we say we want, namely, a free in- terchange of trade among the nations, So if we really want a free interchange of trade among the European nations so that with free valuations in terms of dol- lars those countries can spend their own money among themselves and in this country, then we must insist upon a free interchange of all European currencies ir terms of the dollar. Mr. President, number seven in this list of eight methods of siphoning money out of the United States Treasury is through the EPU, the European payment union, Mr. Hoffman suggested that $6,000,000,- 000 would be saved out of the ECA and paid to countries that would meet the conditions. What really happens after all is that while the five and a half bil- lion, or three billion, or whatever the amount is, is making up the over-all trade-balance deficits of the 16 European countries—we are suggesting that we also make up the trade-balance deficits of the individual nations with each other in those countries. Unless we put a condition on the gift- loan—and everybody knows it is a gift— to the effect that the countrics respect the integrity of private enterprise, that they set up a United States of Europe, and that they permit a free valuation of their currencies in terms of each other and in terms of the dollar, none of the trade we are talking so much about can be realized, because with our own money we are building up the ancient feuds and barriers between the countries in Europe and making it impossible. The European Payments Union, the EPU, is an additional organization set up within the ECA which, in addition to making up the trade-balance deficits generally of the 16 ECA nations, would, in the language of its prompters, “aid the export drive’—exports to the United States—“of the ECA countries to the United States,” through “making the cur- rencies of all European countries avail- able in reasonable amounts to all ECA countries.” That is a wheel within a wheel, Mr. President. No. 8 on the list is the International Monetary Fund set up at Bretton Woods, to stabilize the currencies of the world. Of course, Mr. President, all these trick organizations have been set up to end the problems of the world, problems of exchange and trade, and each of them in turn has failed. I believe it is generally conceded that within a few weeks a request will come from Britain for an appropriation of $5,000,000,000 in exchange for goods which they will later ship to us. In other words, they will put Congress on the side of requesting increased imports into the United States, bringing our own working men and our own investors into direct competition with the low-wage labor of the world and the low standards of liv- ing of the world. ECA MAKES TRADE IMPOSSIBLE BETWEEN EUROPEAN NATIONS Mr, President, in line with the state- ment previously made, I say that all we have done with our FCA and Marshall plan to date is to build up more barriers
2566 to trade and build up more of the Old World hatreds and obstacles to imports, and set up additional quotas, embargoes, and other restrictions to prevent trade between the ECA nations, and, rather than promoting trade, we are promoting a@ condition which makes trade impos- sible between those nations. So now we come to the point, being unable to sell between themselves, im- possible for Italy to sell oranges to Brit- ain, or Britain to sell anything to Italy, and the same condition prevailing all over Europe, the only outlet possible is to our own market, which comes back to the point I previously made, that there never has been any objective since the formation of the United Nations at San Francisco in 1945, coming right on down through other conferences, the Marshall plan, the ECA, and the other trick or- ganizations, except to divide the markets of the United States with the countries of the world. IMPORT LICENSES AND EXCHANGE CONTROLS Mr. President, I ask unanimous con- sent to insert in the REcorp a summary of import licensing and exchange con- trols, Western European Branch, dated February 1950. The PRESIDING OFFICER (Mr. Srennis in the chair). Is there objec- tion? There being no objection, the summary was ordered to be printed in the Rrecorp, as follows: SuMMaRyY OF ImMPporT LICENSING AND EXCHANGE CONTROLS, WESTERN EUROPEAN BRANCH, FEBRUARY 1950 ALBANIA Licensing requirements: All imports sub- ject to license. Exchange controls: Government exercises complete control over foreign exchange. Status of private trade: All foreign trace is nationalized. AUSTRIA Licensing requirements: Licenses required for the majority of imports in spite of lib- eralized and simplified trade regulations as set forth in the new foreign-trade laws ef- fective December 31, 1948. List B specifies all commodities requiring licensing. License does not automatically issue foreign ex- change. Exchange controls: Full control. Permit of Austrian National Bank required for the purchase of foreign exchange to pay for im- ports. Status of private trade: Private trade op- erative. Trade in salt, tobacco, and explo- sives is rescrved to monopolies. BELGIUM-LUXEMBURG Licensing requirements: Import licenses are required for items amounting to ap- proximately 30 percent of import trade. Ap- plication for import licenses must be made to the Office Central des Contingents et Li- censes (O. C. C. L.) by the Belgian importer. For other items, a ‘‘declaration in leu of license” may be used. Exchange controls: Banks which have been approved by the Belgo-Luxemburg exchange authorities are authorized to make available the necessary foreign exchange upon pre- sentation of an approved import license. For the exchange requirements of items imported under a declaration in lieu of l- cense, these same banks generally make available the required foreign exchange upon presentation of the declaration. In certain instances, however, declarations are referred to the licensing authorities by the banks CONGRESSIONAL RECORD—SENATE for approval before exchange is granted. No list of these items has been made public. Status of private trade: Private trade op- erative within framework of licensing and exchange controls. BELGIAN CONGO Licensing requirements: All commodities subject to import Ncense issued by the Ex- change Commission valid for a period of 6 months. Exchange controls: When an import l- cense is granted by the Exchange Commis- sion, this same office also grants an exchange license providing for the required exchange. Status of private trade: Private trade op- erative within framework of licensing and exchange. BULGARIA Licensing requirements: All imports sub- Ject to license. Ministry of Foreign Trade li- cense-issuing authority. Exchange controls: Government exercises complete control over foreign exchange. Li- cense automatically assures foreign ex- change. Status of private trade: All foreign trade is nationalized. CZECHOSLOVAKIA Licensing requirements: Almost all im- ports are handled by procurement-trade mo- nopolies. Licenses from Ministry of Foreign Trade required for all imports. Exchange controls: Exchange permits re- quired. Granting of import lHcense auto- matically provides for allocation of necessary foreign exchange from National Bank of Czechoslovakia. Status of private trade: Hardly any private trade; all foreign trade is being nationalized. DENMARK Licensing requirements’ On most com- modities. Goods Supply Board is the issu- ing authority. Exchange controls: On all import transac- tions. Application for exchange and import license made simultaneously, when import license is required. Status of private trade: Private trade op- erative, within framework of existing licens- ing system, in principle. Imports of a num- ber of important commodities effected on a centralized basis. FINLAND Licensing requirements: On all commer- clul imports. Import licenses generally is- sued only for essentials. Exchange controls: On all import transac- tions. Exchange becomes automatically available with the issuance of an import license. Status of private trade: Private trade oper- ative, within the framework of existing l- censing and control system, except for monopoly articles, notably alcohol and sugar, FRANCE Licensing requirements: All commercial imports (outside Government procurement) are subject to individual import license (Form PRE for ECA imports; form AC for other imports). Licenses must be obtained by the importer from the French Exchange Office (Office des Changes), Paris, before shipment of the merchandise. Licenses are granted on the basis of essen- tiality of the product and availability of exchange. They are nontransferable. Li- censes for imports from extra-European countries are valid for 6 months at expira- tion of which the merchandise must have been dispatched in direct shipment to France. Licenses may not be renewed. Exchange controls: With minor exceptions, all forelgn-exchange proceeds and payments are strictly controlled. Import licenses carry with them the right to acquire foreign ex- change of the amount and kind shown on the license or indicate that no foreign ex- MARCH 1 change is required (license “without pay- ment”). Prior authorizations are sometimes issued by the Exchange Office to facilitate placing of orders which require considerable time to fill. These authorizations which are not import licenses and have no value for cus- toms purposes authorize the importer to effect exchange and bank operations, in con- formity with exchange regulations, neces- sary for placing his order. To actually effect the importation an import license must be obtained in the usual manner but it is is- sued automatically to the extent that it cone forms to the currently valid prior authori- gation against which it is charged. Status of private trade: While the impor- tation of some products such as coal, fats, and liquid fuels are restricted to special na- tional groups or offices, and the importation of certain other products is restricted to government-sponsored and controlled group- ments d’importation (associations of impore ters and/o! manufacturers), the importation of most products is now open to private trade. The number of articles still subject to groupment purchasing is steadily declin- ing. FRENCH NORTH AFRICA Licensing requirements: Import lcenses required on all products. Granted as a rule for essentials only. Names of license-issuing organizations: Algeria: Office Algerien du Commerce Ex- téricur, 13, rue @’Isly, Alger, Algeria. Tunisia: Office du Commerce Extérieur de la Tunisie, Tunis, Tunisia. Fr nch Morocco: Office Cherifien du Com- merce Extéricur, Casablanca, French Morocco, or Directorate of Commerce, Rabat. Exchange controls: Full controls; import license carries the right to foreign exchange. Status of private trade: According to pre- war commodity distribution, about nine- tenths of the trade is restored to private channels; this constitutes the major propor- tion of the value of the trade with the United States. (This refers to Tunisia, Algeria, and Morocco.) FRENCH WEST AFRICA Licensing requirements: Import licenses required on all products. Granted as a rule for essentials only. License issuing organ- ization: Office Colonial des Changes, Dakar, French West Africa. Exchange controls: Full controls; tmport license carries the right to foreign exchange. Status of private trade: Only limited list of products (comprising about 10 percent of trade by prewar pattern) not returned to private channels. GERMANY Western Germany and western sectors of Berlin Licensing requirements: Licenses required for all commercial imports. Obtained from German foreign trade banks (Aussenhandels- banken). Exchange controls: Control exercised over all foreign exchange transactions. Admin- istered primarily through German foreign trade banks. Import license carries with it release of foreign exchange. Status of private trade: Most imports handled through private trade channels. Soviet zone of Germany and Soviet sector of Berlin Licensin,, requirements: Almost all im- ports handled by Government trading mo- nopolies. Exchange controls: Control exercised over all foreign exchange transactions, Status of private trade: Contracts may be made only through Government trading companies. GREECE Licensing requirements: Import licenses, issued by the Foreign Trade Administration in the Ministry of National Economy, are
1950 required for all products. A pro forma in- voice must be submitted by the importer. In general, only commodities Msted in the official import program may be imported. Imports are limited to only the most essential products. Exchange controls: Government exercises control over foreign exchange. The granting of an import license automatically provides authority to open a letter of credit. Status of private trade: Private trade in op- eration, within framework of existing licens- ing system, except for monopoly products, notably kerosene in old provinces, salt, matches, cigarette papers, playing cards, qui- nine, and saccharine. GREENLAND Licensing requirements, exchanre controls, and status of private trade: No private trade; trade is a monopoly of Danish Government. HUNGARY Licensing requirements: Almost all im- ports are handled by Government trade mo- nopolies, Licenres required for all imports. Licenses issued by the Hungarian National Bank. Exchange controls‘ Full control. Permit of National Bank required for the purchase cf foreign exchange to pay for imports. Granting of import license automatically pro- vides for allocation of necessary foreign exchange. Status of private trade: Foreign trade con- centrated largely in Government trading companies, ICELAND Licensing requirements: Licenses from Trade Control Board required for all imports. Licenses are issued, at present, only for es- ecnttals, such as foodstuffs, grain, fats, sugar, fertilizers, feeds, and machinery. Exchange controls: Exchange control on all transactions Import licenses constitute foreign-currency permits, unless otherwise stipulated. Status of private trade: Private-trade op- erative, within framework of existing licens- ing system, except for monopoly articles, notably tobacco, artificial fertilizer, alcohol, matches, and cigarette paper. ITALY Licensing requirements: Import permit, required to be presented to customs for the importation of nearly all goods, is issucd by the Italian Exchunge Office upon instructions of Foreign Trade Ministry and after presenta- tion to Exchange Office of authorized bank declaration that payment is made from or armarked in 60-percent export procecds account Exception: A few industrial raw matcrials (list A, as amended) importable upon presentation to customs of simple bank declaration as above. Exchange controls: Exporters of domestic goods are credited with 60 percent of dollars and other “hard currency” (at present, only free Swiss francs), proceeds left at the dis- position of private trade for importation within 60 days from the end of the month in which it became available, subject to the “licensing requirements” outlined above— or for sale at the “export” rate quoted in Milan or Rome exchanges on day before selling. The 60 percent in question may be purchased by importers through banking channels, The remaining 50 percent must be ceded to the Italian Exchange Office at a rate corresponding to tho average, as of the day of surrender, of export currency quota- tions in Rome and Milan. Statue of private trade: Private trade is restricted to imports deemed essential by the Foreign Trade Ministry, and by exclusive government purchase, at the present time, of wheat (also flour), coal and a few other critical goods. Importation of tobacco (unmanufactured), salt, matches, lighters, quinine, and so forth, ig reserved to the monopolies, CONGRESSIONAL RECORD—SENATE NETHERLANDS Licensing requirements: All imports sub- ject to import licenses, issued by the Central Bureau for Imports and Exports, “Rijksbu- reaux and monopoly holders. Licenses must be applied for by the Netherlands recipient. Usually granted only for commodities vital to national economy and reconstruction, not for luxury foods, and only if not obtainable from nondollar sources. Applications must be accompanied by proforma invoice in triplicate. Exchange controls: Payment “attest” re- quired for all payments to a party abroad, uswolly affixed to the import license. This attest must be obtained from the Neder- landsche Bank, Amsterdam. Status of private trade: Private import trade mostly resumed, within the framework of existing Mcensing system. Official purchas- ing commissions for a few vital commodities still cxist in the United States and Canada. Importing for an entire industry group is favored by more ensily obtainable licences. Full restoration of free trade cannot be expected in the near future. NORWAY Licensing requirements: All commodities subject to import license. Licenses granted only for essentials, such as grain, coal, indus- trial machinery, cars, chemicals, stecl, medi- cal supplies. Licenses for United States goods are hard to get since dollar exchange is scarce. Exchange controls: Rigid exchange control in effect Import permit allows holder to obtain foreign exchange, but a separate ex- change permit from the Eank of Norway must be obtained. Status of private trade: Except for a few commodities in short supply, forcign trade has been restored to private channels. Trade in almanacs and calendars, spirits, and grain and flour 1s reseryed to monopolies. POLAND Licensing requircments' Almost all im- ports are handled by government state moe nonpolies; almost all imports are subject to licensing by the Polish Ministry of Industry and Commerce. Existing controls favor im- ports of basic essentials Exchange controls: Application for foreign exchange must he made to Foretgn Exchange Control Commission after receipt of import license, Status of private trade. Hardly any private trade; all foreign trade is being nationalized. PORTUGAL Licensing requirements. Prior registration, equivalent to import license, required for all imports. Licenses are issued by the Cor- porative Technical Council. Exchange controls: Full control, exchange license required. Status of private trade. Permitted, subject to control of corporative orpanizations, Portuguese colonies (Angola, Mozambique, Cape Verde, Portuguese Guinea, San Tomé, and Principe) Licensing 1equirements: Prior registration, equivalent to import license, required for all imports. Exchange controls. Full control. exchange license required. Status of private trade: Permitted, subject to control of corporative organizations. RUMANIA Licensing requirements: All imports are handled by Government trading monopolies, Licenses required for all importa. Exchange controls: Full control. Status of private trade: Private trade not operative. Foreign Foreign SPAIN Licensing requirements: All imports. Im- ports largely limited to essential raw mate- rials. Special combined import-export trans- 2567 actions are authorized. (See FCW of October 5 and 12, 1946.) In applying for import Mcense Spanish Importer must furnish a pro forma invoice in quintuplicate, prepared by prospective ex- porter, giving weights and f. o. b. foreign port and c. }. f. prices. Import licenses are issued by the Ministry of Industry and Commerce. Exchange controls: All imports. Exchange must be obtained through Foreign Exchange Institute which usually, but not manda- torily, grants it in accordance with the terms of the Import license. Special exchange rates established for vari- ous commodities. Status of privat. trade: Permitted, subject to control at all steges by syndical organt- zations. Trade in tobacco, petroleum, matches, cottonseed, and playing cards 1s reseirved to monopolics. Spanish possessions in Africa Licensing requirements: All imports sub- ject to license Exchange controls: All imports. Exchange must be obtained through Foreign Exchange Institute which usually, but not meandatortly, grants it In accordance with the terms of the import license. Status of private trade: Permitted, within the framework of existing licensing system, subject to control at all stages by syndical orgunizations. SWEDEN Licensing requirements: Rigid general im- port license regulations effective March 15, 1047. Special free list exempt from impcrt license. (See frce Ifst, available in European Branch and Field Offices, and FCW of March 29 and May 31, 1947 ) Exchange controls: Rigid exchange control. Exchange is made available when license is issued but @ separate application must be made Status of private trade: Import trade is in tho hands of private merchants and firms, oxcept for liquois, sugar and tobacco, within framework of existing licensing system. SWITZERLAND Licensing requirements: Import licensing requirements have becn practically elimi- nated, with exception of continued restric- tions on certain agricultural products. Li- censcs freely granicd on most commodities to established importers. Licensed by Serv- ice des Importations et Exportattons du Department Federal de l'Economic Publique in almost all cases. Exchange controls: Imports from dollar countries may be paid for in any currency acceptable to tho se’lor. Payments to most other countries must be made through clearing accounts. Status of private trade: Private trade in Operation, except for trade in sugar, coeal and fodder gruins, coal, oils and fats, which is handled by the State-supervised organiz.- tions In addition, importation of monopoly ar- ticles, notably alcohol, salt and gunpowder, is reserved to monopoly holder. YUGOSLAVIA Licensing requirements: All imports sub- Ject to license. Ministry of Foreign Trade Mcense issuing authority. Exchange controls: Government exercises complete control over foreign exchange. Li- conse automatically assures foreign exchange. Foreign exchange for payment of imports made available by the National Bank of Yugoslavia, . Status of private trade: All foreign trade is nationalized. Mr. MALONE. Mr. President, in line with the same argument, I ask unani- mous consent to have inscried in the
2568 CONGRESSIONAL RECORD—SENATE MarcH 1 Recorp at this point a table from the license and exchange contro) regulations There being no objection, the table was Foreign Commerce Weekly of February in principal foreign countries applying ordered to be printed in the Recorp, as 13, 1950, showing a summary of import to imports from the United States. follows: SumMary oF Import LICENSE AND EXCHANGE CONTROL REGULATIONS IN PRINCIPAL FOREIGN COUNTRIES APPLYING TO ImFoRTS FROM THE UNITED STATES (Rovised as of Jan 20, 1950) (Prepared in the Areas Division, Office of International ‘Trade, Department of Commerce) In many countrios foreign goods may not be imported unless covered hy an import Heense which must be obtained by the importer and tn certain cases must have heen ranted before the order for the goods has been placed — Also in many countrics, owing to the extrome seatetty of dollar exchange, the authorities require that an exchange permit s¢ obtained before the goods may be paid for — Before shipping his goods, the exporter should make certain that the importer has obtained these permits, if required He should insist on being informed as to the [dentifying number or symbol of the document The following tabulation of the {mport and exchange permits required in foreion counties has been prepared as a general guide to exporters Those rewulations apply pri- marily to goods of United States origin and/or payable in United States dollars. Necessary detailed information may be obtumed by writing the Areas Division, Ottice of inter- national Trade of the Department of Commerce. Country Is import license necessary? Is exchange permit required? Afghanistan 2.2... 6. Yes. Anglo-Egy ptlan Sudan. Yes. Arabian peninsula arcas Saudi Arabia. ..222-222. 0. eee eee Aden, Bahrein, Qata , Trucia! Oman_.| Yes Kuwalt Muscat,and Oman, Yemen..| No Yes, Arpontina. ce. eee ee eee eee eee eee Yes, for all imports, granted only for ‘listed’ prodnets. Applica- to import quota tion should bo filed priot to confirmation of purchase order Australia...... eneewene eee eee VOS sone e cee e eee eee ene eee ween ee ee ee cee Import license carries right to foreign exchange. Austria Yos, except for a small number of commodities. Yes, approval by Foreign Trade Commission is prerequisite for foreign exchange permit. Yes, except for s large group of commodities that may be imported | Yes with “declaration in heu of leense.” Belgium Luxemburg.......-- Belginn Congo Yes... Yes Bolwia Yes... No, tmport Heense suthorizes purchase of exchange, but Is not a guaranty that exchange will be granted. Brazil. .....----- en ee eee eee een e wenn’ Yes; except fora few products, Dollar import pormits issued | Yes : only for specified essentials,? British Colonics, not specified else- | Yes.....22- 22 ee eee eee we eee neem enema emne nnn ween eee ee ee eeeee Yes, import license generally assures release of foreign exchange. where 3 Bulgaria --- Yes Yos Yes, but system 8 not restrictive for commodities not under con- trol, for controlled commodities, import license carries right to foreign exchange. Yes_ le eeee ee nn nee eee Yes. Yes, must be obtained prior to shipment of goods and copy must | Yes, in form of notation on import heense, be sent to exporter. China 4__.. Yes. Yes; oxcept for certain Government purchases, Colombia -| Yes. No, but import lieenso necessary to obtuln forelgn exchange. Costa Rica -| No. Yeo, foreign exchange ts rationed, Cuba___._- No.. No Czechoslovakia. --| Import license automatically provides for allocation of necessary foreign exchange, Yes. For goods subject to license, copy of license with customs certification of amportation takes place of exchange license Domimean Republie.._--.---2 2. eee (a Wawona nc cc cee nen nen mene mene easennennccnnenencenee No; but all applications for foreign exchango require Government approval which is granted almost automatically for bona tide commercial transactions Denmark-_-- Ecuador. 2.2.2. eee ence ence w eee w eens Yes; must be presented in order to obtain the consular invoice. | Import license carries the right to forcign exchange (Central Bank Some luxury imports prohibited of Ecuador) Fgvpt Yes, unlicensed imports are subject to confiscation Yes ¥! Salvador. No Ethiopia Yes Finland Yes, Import Heonse carries right to forcirn exchange. France. Issued simultanoously with the import license French Import license carries right to forelgn exchange where speci fied, French Indochina... Germany Do No, the granting of import license automatically provides for the allocation of foreign exchange, Greece Yes, umport permit carries right to open a lettor of credit, Guatomala, No. Haiti wees No Hashemite Jordan Kingdom. Yes Honduras Yes. Hong Kong.. 1 commoditics in short supply or under | No, except where an import license is necessary. international allocation. Hungary... Yes... Yes. Tecland...- Yes, it is usually issued concurrently with import liconse, but does not guarantee allocation of exchange, Which dopends on estab- lishment of priority and availability of foreign exchange. Yos, however foreign exchange automatically released upon presen+ tation of validated import license to exchange bank. -| Foren exchange automatically releasod upon presentation of validated import license to exchange bank. No, but prospective Imports must come within annual or supple- | Yes. mentul quotas. Traq Yes, goods exported before license is obtained are confiscated......} Yes, permits are obtained through licensed dealers. Treland -| For a few products only Yes, Israucl -| Yes...e- e222 we eee -- a -| Yes, Import license usually carries right to foreign exchange, Italy... Yes from Itahan Exchange Ollice, except “List A’ (mostly indus- | Yes, combined with import permit in game document.é trlul raw materials which require only bank ‘“‘henestaro”’). Japan... 2.22.2... Yes Koren, Republic o: Lebanon___ Import Heonso carries right to forcign exchange. Yeo except in barter transactions. es, Liberia 22. aeae . No, Malayan Federation . Yes, Mexico No. Morocco Yes. Import license carries right to foreign exchange. ‘Tangier (International Zone). N Netherlands...2.. 222. -. Notherlands West Indies... Newfoundland, (See Canada.)® New Zealand Nicaragua... o. Yes (‘‘payment attest”). Yes. Import license carries right to foreign exchange. No, import license authorizes puchase of exchange; exchange is rationed and imports closely regulated by categories. See footnotes at end of table.
1950 CONGRESSIONAL RECORD—SENATE 2569 Summary or Import License AND ExcHANGe CoNTRoL REGULATIONS IN Prrnorpat Forrtan Countrres APPLYING TO ImProRTsS FROM THR Unrrep Starzss—Continued Country Is import license necessary? Is exchange permit required? Norway. .....-2---2.--eeenee nn ne ene SS a An authorization to transfer foreign exchange must be obtained from the Bank of Norway end Will usually be noted on the in- . por' conse, Pakistan. .......------5. weweewwennnwee- Yes.......-2.-.--. eeceeececneeewee mewn enenenennncenneees wneceeecnee Yes, however, foreign exchange automatically released upon pres- No entation of validated tnport license to exchange bank. oan Peewee wc ce tem we ce aw mn ance n ee cwneccwnrssecwwewemenanmasenenen= 0. nn Yes,’ No} but importation of many itews ftom the United States is pro- | No. c Philippine Republic. ........-.-------- Yes: for certain articles, for which important license number must | Yes: import Hcense assuros issuance of exchange leense by author- ized agents of Central Bank, exchange is licensed fur other pay- ments, but subject to special regulations, 8ppear op consular involoe. Poland.....--2..---.------- +--+ oe eee Ves. eee ee nn eee ee ee nee ne ee eee ene ee eee Yes Portugal (including tho Azores and | Yes.._-..--------0---.- eee meme eee eee e eee ween eens Yes. Madetra). Portuguese colonies. ....-....---------- VOS_. 2. ene eee een enn ne ene ee eee eee eee Yer. Rumania. ..-----.. 4 Yes, Singapore. -- Yes. Spain (including the Canary Islands) -- Eachange to cover {mport Heense obtainable only through Ex- chanre Institute, which usually, but not mandatorily, grants it. Special exchange rates fixed fol many products. Spanish colonies.........---.----------- Import license car: tes right to foreign exchange. Surinam Yes, Sweden._..------- 22+ nena e ee eee Yes, rigid coutiols A few minor products are exempt from import | Yes. However, foreign exchange, Including dollar cechnnge, is Heanse ! automatically made available if the import heense specifies pay- ment in such currency, and if the license iy registered with @ for- eign exchange bank within 2 months after its issunuce. Bwitzerland.......--.-.-.----- eee eee Yes, for certain products, mamly those under national allocation | No diMiculty in regard to exchange. or those subject to governmental distribution | Byria....------------------------------ POS. _------------- - an ee wee eee nee eee Yes Thailand.....-...........-.----------- Yes: for a limited number of items, including luxury foods, cos- | No. meties, various kinds of essential oils, toys, automobiles, and nrotorcy cles Turkey .-------------------. -------- Ves ne ne nee eee eee eee ene eee eee ee Yes; special exchange license from the Control Office rkey : Union of South A frica (Including South | Yes Wost Afiios, Basutoland, Bechuana- Jand, and Swazilund). hibited.’ United Kingdom-~.-.-.-.-------------- Yes; except for a few products '.......------------ 2-22 eee eee eee Yes. Urngnay__._----------------------- 0 No, im Union of Soviet Sociulst Republics - Yes, umporting governmont agencies responsible for securmg own | Yes, al permit Veoneznela. .....20------- ene e ee eee nen ee No, eacept for approximately 20 tariff fterns !__-.. No Yugoslavia. ....------.--------- eee ee- Df. Yes. a 1 American exporters may obtain information regarding the Import controls on their products by writing the Areas Division ot one of the Geld offices of the Department of commerce 1 All exchange transactions amounting to more than 20,000 cruzeiros require an ex- change permit from the Banoo do Brazil. 3 Includes Bermuda protectorntes, and trusteeshtp territories «Refers to Chinese Nationa) Government regulations ports are under Communist control Mr. MALONE. Mr. President, in the same vein, I ask unanimous consent to insert in the Recorp at this point a Department of Commerce statement, Of- fice of International Trade, British Com- monwealth Branch, for August 1948, which is a summary of import licensing and exchange control regulations in British Commonwealth areas, and the list is given, United Kingdom, Ireland, Australia, New Zealand, India, Pakistan, Union of South Africa, Canada, New- foundland, British colonies. There being no objection, the state- ment was ordered to be inserted in the Recorp as follows: SumMMary OF Import LICENSING AND EXCHANGE CoNTROL REGULATIONS IN BRITISH COMMON- WEALTH AREAS * UNITED KINGDOM Import Hcenses generally carry with them the right to foreign exchange, and an import license 1s essential before an exchange per- mit is tssued. The usual validity period of import licenses js 6 months, with 3 months extension (longer periods are allowed only with special authority). The merchandise must be cleared through the United King- dom customs before the expiration date of the import license. The amount indicated on the Hcense covers the c. 1. f. value, port of discharge. No specific percentage of toler- 1No major changes have occured in these regulations as of February 1950, except in the case of the Union of South Africa. Data in the latter have not been brought up to date in this publication. All imports from all countries are subject to hicense issued by the Director of Imports and Exports in the Union, from all countries of a Jong lst of “unessential”’ items are pro- British West Indies, British East and West Africa, British Guiana, British Honduras, Northern and Southern Rhodesia, and minor colonies, At present, most Chinese Under the foreign exchange aud trade controls linpoits The Import license carries right to foreign exchange up to amount eapressed in looal currency mn relative import heense.* dort License carries right to foreign exchange oxchange allocated by Unicn of Soviet Socialist Republics State Bunk upon receipt of umport license. 6 Copies ol ance in value or quantity is allowed on the import license, but the customs officials are understood to exercise their discretion in all cases. There is no maximum value at which mer- chandise can be shipped without an import license. Bona fide trade samples, personal or household effects and unsolicited gift packages to United Kingdom residents are exempt from licensing requirements Small list of essential goods may enter under open general license. Exchange permits are applied for separate- ly from import licenses, and ordinarily, the validity period of the import license deter- mines the validity period of the exchange permit. The merchandise must be cleared through the United Kingdom customs be- fore the expiration date of the exchange per- mit, and the exchange control copy of the customs entry must be produced. The amount indicated on the exchange permit usually covers the c 1. f. value, port of dis- charge, but as this is normally the condition af the individual contract, the value may be governed to some extent by the amount of exchange called for by the contract. No percentage of tolerance in value is allowed on an exchange permit, but in practice cus- toms officers may make an allowance of up to £5 on imports by parcel post. Apart from gifts, no merchandise can be shipped without an exchange permit, except for the conces- sion mentioned above respecting imports by parcel post, which may be allowed as a mat- ter of customs convenience. TRELAND Ireland has not instituted an import licensing regime such as that of the United Kingdom, and most goods, including sam-~- announced carly m Juno 1949, for Communist-contiolled arca, both a special import heense and forcien exchange deposit certificate are required for all permitted imports, *'The importer buys his dolla: exchange on the basis of the dally free market rate. ¢ Since March 1949 Newfoundland has been a Prov ince of Canada TTinporters must couclude a contract for purchase of oxchange with the Bank of Para- gunv before purehosing abroad, & Inemorandum entitled “Summary of Import Controls in the Union of South Africa’’ are available from the British Commonwealth Branch, Areas Division, or the Held offices of the Dopai tment of Commeros, ples, gifts, and advertising material are not afiected by import licensing restrictions. However, a few products are restricted on importation and require covering import H- censes, but these regulations were made prior to World War II principally for the protec- tion of domestic industry or agriculture, and not as a result of wartime dislocations in trade or balance of payment. In the few cases where licenses are required, the validity period of the import Mcense varies with the particular product imported, but the usual period is 6 months. The issuance of an im- port license in no way carries a right to for- eign exchange, since the exchange-control system operates entirely apart from the other import restrictions in force. Where goods require licenses, the merchandise must be cleared through the Irish customs hefore the expiration date shown on the license. The amount indicated on the import license covers the c. 1. f. value, port of discharge, No specific percentage of tolerance in value or quantity is allowed on the import license but small deviations may be permitted. The Irish importer is required to obtain en exchange permit from the Minister for Finance before he can make payment in dol- lara for imports from the United States. The validity period of the exchange permit varies with the contract of sale, but it is usually from 3 to 6 months’ duration. The mer- chandise must be cleared through the Irish customs before the expiration date shown on the exchange permit. The amount indl- cated on the exchange permit usually covers the c. 1. f. value, port of discharge and no percentage of tolerance in value is provided for. There is no maximum value at which
2570 merchandise can be shipped without an ex- change permit. AUSTRALIA The import Hcense automatically carries the right to the corresponding amount of foreign exchange and there is no need for any exchange permit. The usual validity of the import license is 6 months. The valid- ity period of capital equipment ts 12 months and may be extended for the manufacture of heavy machinery often takes considerably longer than 12 months. Import licenses cov- ering the following items also have a valid- ity of 12 months: ball bearings; chrome, cop- per and alloy cables and wires; cinemato- graph film, unexposed and component raw materials for processing and packing; elec- tric equipment; electric filament lamps and materials for the manufacture of electric filament lamps; electric motors and replace- ment parts therefor; felts and wires for pa- permaking and similar purposes; motor ve- hicle chassis and parts therefor; raw materi- als for manufacture of sensitized photo- graphic paper and film (other than cine- matograph film); replacement parts for in- dustrial machinery; steel sheet of all kinds; telephone equipment; tinplate; tools of trade, tractors and parts; typewriters, cash registers, adding and computing machines, watches and watch parts. Provision is also made for a period of 3 weeks grace on all licenses. Import licenses must be obtained by im- porters for all goods from nonsterling areas in advance of shipment. The application for an import license gives the name of the applicant's bank and that bank is informed by the Import Licensing Branch of the De- partment of Trade and Customs when the license is granted The holder of the license may then open a letter of credit or may ob- tain the necessary dollar exchange against documentary drafts. If a remittance is de- posited prior to shipment of the goods, an application for foreign currency must be made to the Exchange Control Division of the Commonwealth Bank. This is also true in the case of an application for foreign cur- rency for traveling purposes The vessel must arrive at the port of dis- charge before the expiration date of the im- port license. The amount indicated on the import license covers the value of the goods ce. 1. f. port of discharge. No specific provi- sion is made by the regulations for any tol- erance in the value of quantity stated in an import license. However, an increase due to an increase in ocean freight rates may be granted on application to the Import Licens- ing Branch of the Department of Trade and Customs. The maximum value at which merchan- dise may be shipped without an import H- cense is £1 Australian c. 1. f. port of dis- charge Samples of advertising material are not exempt from import license require- ments. Gifts are exempt up to £10 Aus- tralian including Australian duty. NEW ZEALAND The import license automatically carries the right to the corresponding amount of foreign exchange. The usual validity period of the import license is 12 months. The ves- sel or other means of conveyance must clear port of shipment before expiration date The amount indicated on the import license covers the value of the goods c. 1. f. port of discharge. No specific provision is made by the regulations for any tolerance in the value or quantity stated in an import license. However, an increase due to a rise in ocean freight rates may be granted. Import li- censes must be obtained by importers for goods in advance of shipment. No import licenses are required for bona fide gifts. BRITISH COLONIES At the present time foreign-trade opera- tions continue to be subject to close govern- mental control in all British colonial de- CONGRESSIONAL RECORD—SENATE pendencies, Inasmuch as dollar exchange must be granted for purchases from the United States and licenses for all imports and most colonial exports are required. Such licenses must be obtained from the compe- tent authorities * in the colonies concerned by the local foreign firm proposing to engage in foreign trade. Owing to the shortage of dollar exchange, relative to demands, licenses to import from the United States are usually granted on the basis of priority of need. Thus, if the Colo- nial Government concerned considers as un- essential the items for which such licenses are requested, or if the {tems can be obtained from the United Kingdom, import licenses are generally refused. The issuance of an import license, however, generally assures the release of the necessary dollar exchange. Inasmuch as applications for import li- censes may be refused in many cases, United States exporters, before making shipment, should assure themselves that their custom- ers have obtained an appropriate import license and exchange permit. Goods not covered by a valid import license may be re- fused entry, and even if allowed to enter the respective territory, payment in dollars can- not be remitted INDIA The granting of an import license by the Government of India ordinarily carries the right to foreign exchange. The _ validity period of an import license for most items is 6 months from the last date of the month in which the license is granted. Certain specified categories, however, are valid for 1 year, and licenses for capital goods and heavy electrical plant equipment may be valid for periods up to 3 years. The bill of lading must be dated on o1 before the ex- piration date of the import license. The value of goods tor which an import license is granted is based on c i. f., at the port of discharge A tolerance of 10 percent of the value stated in the import Hcense is allowed if there has been an increase in price Although import licenses state both quantity and value, the latter is usually the controlling factor. Shipments such as samples, advertising matter and gifts which are supplied free of charge may be imported without a license, provided the value of each parcel does not exceed 100 rupees (about $30). Parcel post shipments intended for the personal use of the addressee likewise require no licenses With these exceptions, import licenses are required for all shipments from the United States. PAKISTAN The granting of an import license by the Government of Pakistan ordinarily carries the right to foreign exchange. An import license is valid up to the end of the shipment period during which the license is issued. Current shipment periods are January 1 to June 30, and July 1 to December 31. The vessel on which the goods are carried must clear the port of shipment before the expira- tion date of the license. The value of goods for which an import license is granted is the actual value of the foreign exchange necded. No specific per- centage of tolerance in value or quantity is allowed on the import lcense, but the value may be raised if conditions warrant. No import license is necessary for gifts, samples, and advertising matter supplied free of charge. A license is necessary, how- ever, for any item sent as a gift, if it is on the lst of items which are prohibited from 2Each of the colonies has its own control agency or agencies to which various titles are given but which exercise more or less similar functions relating to the licensing of imports and exports, the authorizing of payment for imports, and the handling of exchange pro- ceeds arising from the exportation of colo- nial products. Marcu 1 importation except as gifts. With the ex- ceptions noted above, import licenses are re- juired for all imports from the United tates. UNION OF SOUTH AFRICA At present very few restrictions are im- posed on foreign trade by the Union of South Africa. The information provided below was valid as of August 1, 1948. Should any modifications occur, full details will be pub- lished in Foreign Commerce weekly. Import permits are required on the fol- lowing items only: cereals, wheat and wheat products, maize and maize products, rice, barley, oats and rye and their products; cocoa; animal and vegetable fats and oils, salted fish; meats, dry beans, peas and lentils; and jute products. All other commodities, including gifts, samples, etc., are exempt from licensing requirements. Import permits are valid for 90 days, but may be extended if necessary. Merchandise must be cleared through customs before the expiration date of the import license. The value shown on the import permit may be f.0 b,f.a.5., orc. 1.f., as the importer may request. Tin and tin plate and leather require cer- tificates of essentiality from the South Afri- can Government before they can be imported into the Union, but no import permit is re- quired At present, dollar exchange is freely avail- able on all imports from the United States. No foreign exchange permit is required. However, before an importer can secure dollar exchange, he must go to one of the local banks designated as an agent for the South African Reserve Bank und present evidence that he has placed a bona fide order in the United States and that the goods are either ready for shipment or have been shipped. If these conditions are met, the local bank will then make the required amount of dol- lars available in exchange for South African currency. Dollar letters of credit approved by the local banks will be valid for up to 6 months, but may be extended if necessary. The amount of dollar exchange approved by the local bank will be sufficient to cover the cost of the merchandise plus any addi- tional costs, depending on whether the goods were sold f. 0. b vessel, f. a. 8. point of ship- ment, orc. 1 f. port of discharge Forward purchases of foreign exchange are not permitted for nonessential consumer goods, but are permitted for producers’ goods up to a maximum of 6 months. Dollar and other hard-currency exchange is, however, made avallable for current purchases of all Classes of goods’ In the case of nonessential consumer goods, dollar exchange is made available at the rate of exchange prevail- ing at the time the goods are ready for ship- ment As stated above, evidence of the availability of goods must be presented to the local banks when an application for for- eign exchange is made. The reexport from the Union of goods im- ported from countries outside the sterling area is prohibited, except with Treasury per- mission. Permits will be granted if the Union exporter recovers from the importer in the country of destination the same cur- rency and in the same amount as originally paid by the Union importer For example, a Union importer who has obtained dollar exchange to pay for goods from the United States cannot reexport the goods to Southern Rhodesia unless he receives the equivalent amount of dollar exchange in payment from the Rhodesian importer. Dollar exchange approved by the local bank depends on the amount required to pay for merchandise and other costs covered by the contract. CANADA Since November 17, 1947, Canada has had import control for exchange purposes but the control ts effected through commodities, a considerable number of which are subject
1950 to restriction via (a) embargo; or (b) quotas; or (c) individual or project licensing of pro- Gucers’ goods. Goods not subject to em- bargo may be imported without a permit from any part of the British Empire. Importers only may obtain import per- mits or allotments which must be presented to clear customs. This clearance carries the right to exchange on presentation of the port-dated invoice showing receipt of the goods. Prepayment is permitted on special arrangement with local agents of the far- eign exchange control board. Acceptance of Canadian dollars by the exporter does not remove the import restrictions. The im- porter is required to obtain a permit for any payment to a nonresident. The kind and duration of the permit 1s dctermined by the commodity. For quota goods, importers’ allotments of exchange are established quarterly, on the basis of a na- tional quota and the importer's participa- tion in trade in .he base year. Quota goods now require permits only where the import is from scheduled countries of which the United States is one. These permits cover groups of related items—e. g., food, textiles, etc.—and may be applied at the importer's convenience to any or all of the individual commodities within the group. Some pro- ducers’ goods imported in large quantity are also on a& quota basis but in general these goods are governed by allotments which are issued on a project basis against which indi- viduul imports are checked off. The permits are issued through tbe port at which the importer normally enters goods, but they are transferable to other ports on notice The import restrictions do not apply to gifts valued at not more than $5. They do not apply to bona fide birthday gilts, and in the Christmas scason, Christmas pifts, valued at not more than $25. They do not apply to bona fide wedding gifts of uny value. NEWFOUNDLAND Import licenses are required only for food, oils and tats, and soap. No license is re- quired for other goods. Exchange must be applied for but is normally available for permitted imports on proof of entry. Pre- payment requires arrangement with the for- eign exchange control. UNITED STATES ASKED TO MAKE UP STERLING CREDITS Mr, MALONE subsequently said: Mr. President, I ask unanimous consent to have inserted at the proper place in the Recorp several matters which I inad- vertently overlooked in the course of the address I delivered this afternoon here in the Senate. First, I ask unanimous consent to have inserted at the proper place in the Rec- ord an article appearing in the New York Journal of Commerce for March 1, 1950. The article relates to the $5,000,000,000 already requested by Great Britain to be appropriated by the Congress of the United States, and for which, perhaps, as rumor has it, Britain will furnish goods at a later date. The dispatch reads as follows: Brirain Reapres StTeRuINGc Desr Procress Stupy—Report Duet IN 2 To 8 WEEKs, HorrMan Says; Ety ro Rote in EPU WASHINGTON, February 28.—The Economic Cooperation Administration expects to re- ceive from the British Government in the next 2 or 3 weeks a report of progress being made toward solving the problem of Britain's sterling debt, ECA Administrator Paul G. Hoffman said today. Sterling balances owed by Great Britain to Commonwealth nations, principally as a result of the war, total about £3,200,000,000. These debts are currently the biggest obstacle CONGRESSIONAL RECORD—SENATE to British participation in the Furopean Payments Union, which Hoffman is sponsore ing a8 a major step toward European eco- nomic integration. BEPLIED TO QUESTIONS Hoffman's statement was made in reply to questions as he and Dirk U. Stikker, Nether- lands Foreign Minister, who was recently appointed political conciliator on the Organ- ization for European Economic Cooperation, left a conference with President Harry 8. Truman, W. Averell Harriman, United States special representative in Europe, ac- companied Hoffman and Dr. Stikker to the White House. Both Hoffman and Dr Stikker reaffirmed their optimism that EPU will be adopted. “T think the intent to develop a European Payments Union is there now,” Hoffman said, adding that he is optimistic because “Dr, Stikker is on the job.” Stikker pointed out that he has been po- litacal conciliator of OEEC for only 25 days, but that since being appointed he has con- sulted with the principal European coun- trics, and “I am of the opinion that we should go forward as soon as possible” with integration, he declared. STERLING EARNINGS HIGH The sterling balances owed by Great Brit- ain may prevent her membership in EPU unless Britain can find some way to slow down the rate at which her creditors are a@rawing down and sponding these pounds, A number of Europeun countries are earn- ing substantial amounts of sterling in trade with Britain's creditors, and if such heavy earnings of sterling continue, Britain would have to start putting up some gold or dollars uncer the EPU plan. It is the fear of losing gold or dollars from thetr present slim reserves that is cur- rently deterring the British from participa- tion in EPU. Mr. President, it can readily be seen— this 1s not the first time 1t has been men- tioned—that the Congress of the United States appropriates money to make up the sterling debts incurred by Britain during the war with the members of the sterling bloc, such as India, Pakistan, and other commonwealths. But it seems that the situation in that respect is coming to a head. However, at present it 1s not made clear whether the £3,250,- 000,000 is a part of the $5,000,000,000 that will be requested from the United States. I wish to call attention to the fact that this matter now confronts us. These are war debts incurred by England with her sterlang bloc commonwealths during the war; they were incurred in the same way that the $50,000,000,000 of lend- lease was supplied by the United States, Subsequently it was canceled. The can- celing of that $50,000,000,000 of lend- lease seems to the junior Senator from Nevada to constitute more than a suffi- cient reason for the canceling by each of the sterling bloc countries of the sums owed to them by Britain, which totals approximately £3,250,000,000, as stated in the dispatch to which I have just referred. At-least it is a far cry to ask us to make it up. A BILLY SUGGESTION—IRIBUTE MONEY Mr. President, I ask unanimous con- sent to have printed in the Recorp, at the proper point my remarks, an article entitled “Fifty Billions for Trib- ute?” appearing in the column entitled “Business Tides,” by Henry Hazlitt, and 2571 published in the magazine Newsweek for February 20, 1950. There being no objection, the article was ordered to be printed in the Recorp, as follows: FIFTY BILLIONS FOR TRIBUTE? (By Henry Hazlitt) Senator Baicn McManon’s proposal that our Government contribute $50,000,000,000 over 5 years far a global Marshall plan is the culmination, the reductio ad absurdum, of the befuddlement on foreign economic policy in which Washington has wandered for the last 5 years. Senator McManon's proposal is, to put it beldly, & proposal to pay unparalleled trib- ute. No other word fits. “Tribute” is de- fined in the dictionary as “a stated sum * * © pnid by one soveretgn or State to another in acknowledgment of submission or as the price of peace, security, protection, or the like.” When we were small and considered weak, our minister Charles Pinckney, on being told by Talleyrand that a gift to the Directory micht avert war with France, made his fa- mous reply. “Millions for detense, sir, but not 1 cent for tribute.” ‘Yet today Senitor Mc- Manon, at a time when we are by far the strongest Nation in the world, proposes that we pay up to $50,000,000,000 as the price of talin’s promise to stop threatening us with atomic or hydrogen bombs. This mere proposal, by the chairman of the Joint Committee on Atomic Energy, is cortain to be taken by the leaders behind the iron curtain as a sign of fear and weakness. The leaders of the tron curtain countries have already found that they can with im- punity plant spies tn our midst, blockade us at Berlin, beat or imprison our envoys, and tnsult and vilify us everyday. What fur- ther move may they not be encouraged to take by this timorous offer of ransom? Even Secretary Acheson's emphatic rejection can- not fully offset this blow to our prestige. The McManon proposal obviously lacks sense Would we make ourselves safer by pouring billions of our dollars into Russia, by reducing our economic and military strength to increase hers, by intensifying the problems of our free-enterprise system to mitigate the problems of her Communist sys- tem? And if for 4 years Stalin has unswerv- ingly refused to call off the atomic-bomb race, even when we were far ahead of him, and even at the risk of the annihilation of millions of Russians and of his own regime, does it make sense to suppose that he will reverse his stand pow for a mere monetary bribe? It is time we asked ourselves frankly, in fact, whether an atom-bomb agreement might not actually be more dangerous than the present known lack of agreement, by binding us and not the lenders of Russia. They are the same leaders who have broken promise after promise, who believe that the end justifiea any means, who live by system- atic perfidy. The proposals for international inspection of the vast depths of a totalitar- ian Russia are not realistic. Even if our in- spection finally did catch up with a plant in Russia that had been working on the bomb— after we had poured in our 850,000,000,000 to help finance 1t—what recourse then? But the real point of this article 1s eco- nomic. Senator MCMAHON himself calls his proposal a global Miarshall plan and casu- ally drops Point Four inside it. It is a supcr- give-away program. It is not only politically preposterous, but it rests on the same funda- mentally false economic assumptions as the Marshall plan and Point Four. It wrongly as- sumes that the American capital thrown into such schemes is a net addition to the world’s capital. It is in fact a mere diversion of such capital. And it is a diversion, in the main, from productive private entciprtses into far less productive collectivist projects,
2572 Buch schemes do not encourage private lending abroad; they discourage such lend- ing. They do not speed up recovery and de- velopment of world resources; they retard that recovery and development. For as long as foreign countries can get easy money, seized from our taxpayers, out of the United States Government, they will neither give the assurances nor make the economic re- forms that they would have to make to at- tract private investment. It is time we called a halt to the giveaway manta. THE ADMINISTRATION'S THREE-PART FREE TRADE PROGRAM Mr. MALONE. Mr. President, simi- larly, I request unanimous consent to have inserted at the proper point in the Recorp a portion of an address delivered by me in the Senate on June 14, 1948, outlining the three-part, long-range plan to redistribute the wealth of the United States. There being no objection, the excerpt was ordered to be printed in the Rrcorp, as follows: [From the ConcrEessionAL Recorp of June 14, 1948] Mr. President, I want to again call atten- tion to the long-range plan to redistribute the wealth of this Nation. The three steps projected by the economic one-worlders for that purpose are: First. The established policy of exporting American money to make up the annual trade balance deficits—from all sources— of the European, Asiatic, and South American countries. Our chief export is money. The occasion may be the UNRRA, 8$3,000,000,000; the Greek-Turkey, $400,000,000; the English gift-loan of $3,750,000,000; or the Marshall- Bevin plan of exporting $17,000,000,000 to Eu- rope, but the master-minded policy is the same, the economic equalization and the re- distribution of the wealth of the 57 nations of the world, starting with the United States of America. This is a definite part of the in- ternational policy as supported in Senate debate, the English and Marshall-Bevin-plan gift loans are simply successive moves in establishing the first step of the policy. Second. The selective free-trade method of dividing the production of this country with the nations of the world through the Trade Agreements Act, known by the catchword “reciprocal trade,” is the second step in the economic one-world plan. Through the Trade Agreements Act industries selected by the State Department are frankly traded to one or more nations for a fancied advantage in furnishing them a market for their goods to secure money—dollar exchange—presum- ably to buy our processed and manufactured products Third The International Trade Organiza- tion—ITO—through which 57 nations, each with one vote, will meet each year and frankly allocate the production and markets of the world between such nations, pre- sumably finally on a population and cost of production, without regard to the differential of production cost due to the difference in the standards-of-living basis, thereby com- pleting the job of international redistribu- tion of the wealth of this Nation. This Organization is to be the final leveler of the wage-living standards of the world. International conferences and world wars are incidents, and even time is unimportant in the plan of the internationally minded “one economic world” group. The “one economic world’ group prema- turely launched the ‘one political world” idea in the 1940 Presidential campaign. The emphasis has now shifted back to economics through the three definite policies; and when the “one economic world” goal is reached, the “one political world” is expected to fol- low in the natural course of events. CONGRESSIONAL RECORD—SENATE EXTRACT FROM VITAL S&PEECHES—-AMERICAN WORKERS VERSUS FREE TRADE Mr. MALONE. Mr, President, similar- ly, I request unanimous consent to have printed at the proper place in the REcorp, as a portion of my remarks, an excerpt from an address delivered by me before the American Federation of Labor con- vention at St. Paul, Minn., on October 8, 1949, the subject of the address being, “American Workers versus Free Trade— Importing Unemployment.” The ex- cerpts are properly marked on pages 52, 53, and 54 of the publication in which they appear. There being no objection, the excerpts were ordered to be printed in the Recorp, as follows: [From Vital Speeches of the Day for Novem- ber 1, 1949] AMERICAN WORKERS VERSUS FREE ‘1’ RADE (By GrorGe W. MALONE, United States Sena- tor from Nevada) In a recent issue of Time magazine, I was rather contemptuously quoted as saying that due to the so-called reciprocal trade treaties which the President now has the power to make, America was importing unemploy- ment. That quotation was accurate. I did say it, and I mean every word of it. I am glad for this opportunity to spell out exactly what I mean and why I am correct. It is particularly fitting that this speech should be made on this oceasion before the most important labor group in the entire world. I want to talk to you about your own future and those of your family and children. When I say that your standard of living has been put in jeopardy by the State De- partment’s policies, I ask that you not make up your minds that I am -vrong until you have heard my reasons. e . e ° * Now, let’s see what happens when we get into foreign trade. Let’s take Joe America who is making watches in Massachusetts. He gets $1.25 an hour, and he can com- pete with every other watchmaker who gets $1.25 per hour. But what happens when he gets into com- petition with Joe Switzerland who is a watchmaker in Gencva and is getting 50 cents an hour? The answer to that is what actually hap- pened: Joe Amer‘ca up in Waltham found his plant shut down, and 75 percent of the watch movements sold through other Amer- ican companies are coming from Switzer- land. Now what can Joe America do? He has two choices: Go to work for 50 cents an hour and compete with Joe Switzerland, or he can learn a new trade. Neither is a good choice—he is out of luck simply because the low tariff or import fee on foreign watches pulled the rug out from under him. Now, let’s go back for a minute and see why men join unions. First of all, they want to be sure of a wage that 1s in line with the wages of the other workers who make the things they have to buy. Second, they want job security. The unions can give the men both of those things as far as the domestic situation is concerned, but what happens when cheap foreign-made products cascade into Ameri- can markets? The answer is quick and simple: The floor that has taken 60 years to build under the American workers’ standard of living and job security collapses, The customers find better values in for- elgn-made goods, and they would not be MarcH 1 human if they did not take advantage of them. And the American workers who would have made those products are out of a job. That is why I said, and will keep on saying as long as I have breath in my hody: “When we import cheap competitive goods, we im- port unemployment.” Why is it that so many politicians who would not dream of voting for unrestricted immigration of cheap labor go right ahead and vote for the unrestricted importation of the products they make: There are no essen- tial differences between the two policies. President Truman says he is not going to allow that to happen, even though he has the power to make it happen Well, it has already happened under the emergency legislation (which emergency, by the way, has been kept alive for 15 years) and can happen again and much more seriously. Already the pottery workers, the glass work- ers, bicycle workers, carpet workers, woolen workers, workers who produce silver, zinc, lead, mercury, tungsten, aluminum, paper, chemicals, and textiles are feeling the pinch that has already squeezed the watchmakers. As I said, Mr. Truman promised that this would never be allowed to become serious, but when my group in the Senate wanted him to give up the power to make it serious, he put the heat on his majority, and we were snowed under. One of the excuses given by the admin- istration for hamstringing American workers is that the foreign workers are in distress. Let’s look at this argument, not through the confused eyes of our foreign-policy mak- ers, but just plain common sense. My proposal, known as the flexible import fee, would, for example, put enough tariff on Swiss watch parts to make them com- petitive with American parts of equal qual- ity. Nobody wants to squeeze all foreign prod- ucts from our markets; we just want them to be fair competition. The bleeding hearts in the State Depart- ment believe that this import fee on Swiss parts would have been bad for the Swiss watchmaker. Let’s see if it would. At present his employers are sweating him to get cheap watches into America. Suppose his employer could no longer get away with this because the import fee raised his American prices? Here is what would happen. Under those conditions there would no longer be any incentive for the employer to sweat the Swiss worker, and his wages could be raised painlessly because, as the cost of the parts went up, due to wages, the equal- izing import fee would go down. The only loser would be the United Statcs Customs. That point is very important, and I want to explain it in detail. Suppose a Swiss watch now enters this country for 85 and sells for $7.50, while an equivalent American watch has to sell for 810. ‘ The flexible import fee on this watch would be about $250 and each of the two watchcs would then sell to the public for $10—the largest factor in this differential of cost is, of course, the difference in the wuases of $1.25 per hour for the American workor and the 50 conts per day for the Swiss woikcr, The Swiss employer would soon see that there was no sense in giving 85 to the United States Customs when he could just as easily give most of it to his own workers and keep &® little extra for himself. That is the best way I know of to really help the Swiss worker raise his standard of living. And if his employer raised the price and tried to keep the entire 85, the Swiss watch-
1950 makers union would have a perfect set-up for a strike that would get real results. * * * e * Of one thing I am sure: If our program to help the world involves weakening America and destroying the standard of living of the American worker, that program is bad for the entire world, including the people getting the help, be- cause without a strong America, the world is headed straight for the dogs. I claim that we can be intelligent, honest internationalists without subscribing to the crippling of America’s strength and vitality. In fact, it is, to my mind, the essence of con- structive internationalism. * * * « e Let's look at the subject of tariffs, just as if we knew nothing at all about them. A tariff is an amount of money that an importer has to pay before he can sell a given product. Why do we have tariffs? There are only two legitimate reasons: One, to raise money for the Government, and two, to put a floor under wages—under the price for which the product can be sold. Any other reason for imposing a tariff is not a legitimate reason. What is our present tariff policy? It is being carried on under what is called the Reciprocal Trade Act, which is a mis- nomer because there is no such act on our statute books. We do have the 1934 Trade Agreements Act, and from that comes the President’s au- thority to give away your shirt if he so decides. This Reciprocal Trade Act title is really a slogan, and a phoney one, to sell free trade to the American worker, e oe e * ° FREE IMPORTS—FREE IMMIGRATION There is no effective difference between im- porting the products of foreign low-wage live ing standard labor and in importing the la- bor itself. In either case we are importing unemployment. It would be very difficult to justify a vote against free immigration if we vote for im- porting the products of the low-cost foreign labor. SUMMATION This Nation is in dire need of an Ameri- can policy for the American worker. THE FLEXIBLE IMPORT FEE But before any policy can be effective we must abolish this Trade Agreements Act which is used solely to flood this country with the products of cheap foreign labor— this importation of unemployment must stop. Then Congress can lay down a prin- ciple to encourage legitimate foreign trade— by establishing a definite market for the products of all nations, but on a fair and reasonable competitive basis with our own products. I do not think it unreasonable to demand that American products be protected from unfair, slave labor, foreign competition in our own market. The flexible import fee principle would guarantee fair and reason- able competition since import fees would be fixed on that basis—in the same manner as the Interstate Commerce Commission fixes freight rates for carriers, namely on a@ basis of a reasonable return on investment. Under the flexible import fee principle, there would be no consideration of a high or a low tariff or import fee, but the im- port fee would at all times correctly repre- sent the differential in labor standards be- tween here and abroad. WELCOMES FAIR, REJECTS UNFAIR COMPETITION The greatest factor in the cost of almost any imported product is labor. Well—this fiexible import fee would continually measure the difference between the cheap foreign labor rates and our own. It woulld XCVI——162 CONGRESSIONAL RECORD—SENATE prevent the forelgn product from gaining an unfair price advantage over the Ameri- can product in our own market. The flex- {ble import fee principle would accept and welcome all competition on our wage liv- ing standards, but it would automatically reject all unfair competition with American labor standards. Mr. MALONE. Mr. President, it is time that the workingmen and the investors of the United States of America woke up and realized that the real source of dan- ger to their jobs and to their investments is right here in their own Government. It could be that, for the first time in all our history, we shall fully realize just what President Lincoln meant when he said: Mf destruction is to be our lot, we must ourselves be its author and finisher. As a nation of free men, we must live through all time or die by suicide. INTERSTATE RIVER COMPACT BETWEEN WYOMING AND IDAHO Mr, HUNT. Mr. President, I ask unanimous consent to introduce at this time, on behalf of my colleague, the senior Senator from Wyoming [Mr. O’Manoney], the senior Senator from Idaho {Mr. Taytor], and the junior Sen- ator from Idaho [Mr. DworsHak], and myself, a bill requesting the consent and approval of Congress to an interstate river compact between Wyoming and Idaho, and I ask unanimous consent for the immediate consideration of the bill. The PRESIDING OFFICER. Is there objection to the bill being received and considered out of order? Mr. LUCAS. Mr. President, as I understand, the request would involve setting aside temporarily the unfinished business. No quorum Call is needed, and I shall not make an objection, but in the event any Senator who js not now pres- ent, after he has looked over the compact and understands what has happened, desires reconsideration of the action on the measure, I shall be constrained to make a motion to reconsider the vote by which the bill was passed. Mr. SALTONSTALL. Mr. President, I have listened to what the majority lead- er has said, and I should like to ask the junior Senator from Idaho [Mr. Dwor- sHAK!], who is now present, whether he knows of any objection in his State, or whether or not his State is equally in favor of the compact. Mr. DWORSHAK. Mr. President, I would like merely to make the comment that the State legislatures of Idaho and Wyoming during the past month held special sessions during which approval was given to this compact for a division of water of the Snake River between the two States. Under the bill which is sub- mitted now and the plan which was pro- posed several months ago, congressional approval is required. It is a mere for-~ mality. In view of the fact that both State legislatures are in complete accord, I can see no objection of any kind to this proposals. Mr. SALTONSTALL. Mr. President, reserving the right to object, I should like to ask the Senator from Wyoming or the Senator from Idaho if the senior Republican minority member of the com- mittee, the Senator from Nebraska (Mr, Bur.er] approved the compact? 2573 Mr. HUNT. I should have to say to the Senator—— Mr. SALTONSTALL. Mr, President, I will say that I have just received a note that a telephone message states that the Senator from Nebraska approved of the compact, Mr. HUNT. To the best of my know- ledge, there is no opposition from any source. The compact has been approved by the Federal Government, approved by the legislatures of both States, and signed by the Governors of both States, and what is now proposed is merely formal action by the Congress. The PRESIDING OFFICER. Is there objection to the bill being received at this time? There being no objection, the bill (8, 3159) granting the consent and approval of Congress to a compact entered into by the States of Idaho and Wyoming re- lating to the waters of the Snake River was received and read the first time by its title and the second time at length. The PRESIDING OFFICER. Is there objection to the present consideration of the bill? There being no objection, the bill (S. 8159) granting the consent and approval of Congress to a compact entered into by the States of Idaho and Wyoming re- lating to the waters of the Snake River was considered, ordered to be engrossed for a third reading, read the third time, and passed, as follows: Be it enacted, etc., That the consent and approval of Congress is hereby given to an interstate compact relating to the waters of the Snake River, signed (after negotiations in which a representative of the United States duly appointed by the President par- ticipated) by the Commisstoners for the States of Idaho and Wyoming on October 10, 1949, at Cheyenne, Wyo., and thereafter rati- fled by the legislatures of each of the States aforesaid as provided for by Public Law 580, Eightieth Congress, approved June 3, 1948 (62 Stat. 294), which compact reads as follows: “BNAKE RiveR COMPACT “The States of Idaho and Wyoming, parties signatory to this compact, have resolved to conclude a compact as authorized by the act of June 3, 1948 (62 Stat. 294), and after nego- tiations participated in by the following- named State commissioners; “FOR IDAHO “Mark R. Kulp, Boise, “N. V. Sharp, Filer, “Charles H. Welteroth, Jerome, “Roy Marquess, Paul, “Ival V. Goslin, Aberdeen, “R Willis Walker, Rexburg, “Alex O Coleman, St. Anthony, “Leonard E. Graham, Rigby, “Charles E Anderson, Idaho Falls, “A. K. Van Orden, Blackfoot, “FOR WYOMING “L. C. Bishop, Cheyenne, "“E. B. Hitchcock, Rock Springs, “J. G. Imeson, Jackson, “David P, Miller, Rock Springs, “Carl Robinson, Afton, “Ciril D. Cranney, Afton, “Clifford P. Hansen, Jackson, “Clifford 5. Wilson, Driggs, Idaho. “Lloyd Van Deburg, Jackson, and by R. J Newell, representative of the United States of America, have agreed upon the following articles, to-wit: “Article I “A. The major purposes of this compact are to provide for the most efficient use of the waters of the Snake River for multiple
2574 purposes; to provide for equitable division of such waters; to remove causes of present and future controversies; to promote in- terstate comity; to recognize that the most efficient utilization of such waters is re- quired for the development of the drainage area of the Snake River and its tributaries in Wyoming and Idaho; and to promote joint action by the States and the United States in the development and use of such waters and the control of floods. “B. Either State using, claiming, or in any manner asserting any right to the use of the waters of the Snake River under the authority of either State shall be subject to the terms of this compact. “Article I “As used in this compact’ “A. The waters of the Snake River, exclu- guished from terms such as ‘Snake River and its tributaries’ shall mean the Snake River from its headwaters to the Wyoming- Idaho boundary and all tributaries flowing into it within the boundarles of Wyoming, and the Salt River and all its tributarics “B. The terms ‘Idaho’ and ‘Wyoming’ shall mean, respectively, the State of Idaho and the State of Wyoming, and, except as other- wier expressly provided, either of those terms or the term ‘State’ or ‘States’ used in iela- tion to any right or obligation created or recognized by this compact shall include any person or entity of any nature whatsoever, including the United States. “C. The term ‘domestic use’ shall mean the use of water by an individual, or by a family unit or household for drinking, cook- ing, laundering, sanitation, and other per- sonal comforts and necessities; and for the jrrigation of a family garden or orchard not exceeding one-half acre in area. “D The term ‘stock water use’ shall mean the use of water for livestock and poultry. “E The term ‘established Wyoming rights’ shall mean Snake River water rights that have been validly established of record in Wyoming prior to July 1, 1949, for use in Wyoming. “Article IIT “A. The waters of the Snake River, exclu- sive of established Wyoming rights and other uses coming within the provisions of C of this article III, are hereby allocated to each State for storage or direct diversion as follows: “Percent “To Idaho ...------------------------- 94 “To Wyoming ~--.--------------------- 4 subject to the following stipulations and conditions as to the 4 percent allocated to Wyoming: “1. One-half may be used in Wyoming by direct diversion or by storage and subsequent diversion without provision being made for replacement storage space. “2 The other one-half may be diverted for direct use or stored for later diversion and use on the condition that there shall have been provided for reimbursement of Idaho users replacement storage space to the extcnt of one-third of the maximum annual diversion in acre-feet but not in excess, how- ever, of one-third of half the total hereby allocated to Wyoming Until this total re- placement storage space has been made avall- alle, provision for meeting its proportionate Put of this total shall be a prerequisite to the right to use water in Wyoming for any irrigation project authorized after June 30, 1949, for construction by any Federal agency. “B, The amount of water subject to allo- cation as provided in A of this article III shall be determined on an annual water- ycar basis measured from October 1 of any year through September 30 of the succeeding year. The quantity of water to which the percentage factors in A of this article III shall be applied through a given date in any water year shall be, in acre-feet, equal to the algebraic sum of: CONGRESSIONAL RECORD—SENATE “1. The quantity of water, in acre-feet, that has passed the Wyoming State line in the Snake River to the given date, deter- mined on the basis of gaging sti.tions to be established at such points as are agreed on under the provisions of B of article VI. “2. The change during that water year to the given date in quantity of water, in acre- feet, in any existing or future reservoirs in Wyoming which water is for use in Idaho. “3. The quantity of water, in acre-feet, stored in that water yoar and in storage on the given date for later diversion and use in Wyoming, under rights having a priority later than June 30, 1949, “4 One-third of the quantity of water, in acre-feet, excluding any storage water held over from prior years, diverted, under rights having a priority later than June 30, 1949, in that water year to the given date: “(a) from the Snake River for use that year on lands in Wyoming, and “(b) from tributarics of the Salt River for use that year on lands in Idaho. “C. There are hereby excluded from the allocations made by this compact: “1 existing and future domestic and stock- water uscs of water, provided, that the ca- pacity of any reservoir for stock water shall not excced 20 acre-feet; “2, established Wyoming rights, and “3 all water riyhts for use in Idaho on any tributary of the Salt River heading in Idaho which were validly established uuder the laws of Idaho prior to July 1, 1949, and all such uses and rights are hercby recognized. “Article IV “No water of the Snake River shall be di- verted in Wyoming for use outside the drain- age area of the Snake River except with the approval of Idaho, and no water of any tribu- tary of the Salt River herding tn Idsho shall be diverted in Idaho for use outside the drainage area of said tributary except with the approval of Wyoming. “Article V “Subject to the provisions of this compact, waters of the Snake River may be impounded and used for the generation of electrical power, but such impounding and use shall be subservient to the use of such waters for domestic, stock, and irrigation purposes, and shall not interfere with or prevent their use for such preferred purposes. Water im- pounded or diverted in Wyoming exclusively for the generation of electrical power shall not be charged to the allocation set forth in article III of this compact. “Article VI “A, It shall be the duty of the two States to administer this compact through the offi- cial in each State who is now or may here- after be charged with the administration of the public water supplies, and to collect and correlate through such officials the data neo- essary for the proper administration of the provisions of this compact. Such officials may, by unanimous action, adopt rules and regulations consistent with the provisions of this compact. “B. The States shall in conjunction with other responsible agencies cause to be estab- MUshed, maintained and operated such suit- able water gaging stations as they find neces- Bary to administer this compact. The United States Geological Survey, or whatever Federal agency may succeed to the functions and duties of that agency, so far as this com- pact is concerned, shall collaborate with offi- cials of the States charged with the adminis- tration of this compact in the execution of the duty of such officials in the collection, correlation and publication of information necessary for its proper administration. “C. In the case of failure of the adminis- trative officials of the two States to agree on any matter necessary to the administration of this compact, the Director of the United States Geological Survey, or whatever official MARCH 1 succeeds to his duties, shall be asked to ap- point a Federal representative to participate as to the matters in disagreement, and points of disegreement shall be decided by major- ity vote. “Article VII “A, Either State shall have the right to file applications for and receive permits to construct or participate in the construction and use of any dam, storage reservoir or di- version works in the other State for the pur- pose of conserving and regulating its allo- cated water and to perfect rights thereto. Either State exercising this right shall com- Ply with the laws of the other States except as to any general requirement for legislative approval that may be applicable to the grante ing of rights by one State for the diversion or storage of water for use outside of that State. “B. Each claim or right hereafter initinted for storage or diversion of water in one State for use in the other State shall be filed in the office of the proper official of the State in which the water is to be stored or diverted, and a duplicate copy of the application, in- cluding a map showing the character and location of the proposed facilities and the lands to be irrigated, shall be filed in the office of the proper officinl of the State in which the water is to be used. If a portion or all the lands proposed to be reclaimed are located 1n a State other than the one in which the water is to be stored or diverted, then, before approval, said application shall be checked against the records of the office of the State in which the water is to be used, aud a notation shall be placed thereon by the cflicer in charge of such records au to whether or not be spproves the application. All en- dorsements shall be placed on both the orisi- nal and duplicate copies of all such applica- tions and maps filed to the end that the records in both States may be complete und identical. “Article VIII “A. Neither State shall deny the right of the United States, and, subject to the con- daitions hereinafter contained, ncither State shall deny the right of the other State to acquire rights to the use of water, or to con- struct or participate in the construction and use of diversion works and storage reservoirs with appurtenant works, canals end conduits In one State for the purpose of diverting, conveying, storing or regulating water in one State for use in the other State, when such use is within the allocation to such State made by this compact. “B Either State shall have the right to acquire such property rights as are necessary to the use of water in conformity with this compact in the other State by donation, pur- chase or through the exercise of the power of eminent domain. Either State, upon the written request of-the Governor of the other State, for the benefit of whose water users property is to be acquired in the State to which such written request 1s made, shall proceed expeditiously to acquire the desired property either by purchase at a price satis- factory to the requesting State, or, if such purchase cannot be made, then through the exercise of its power of eminent domain and shall convey such property to the requesting State or such entity as may be designated by the requesting State; provided, that all costs of acquisition and expenses of every kind and nature whatsoever incurred in obtaining the requested property shall be paid by the re- questing State at the time and in the manncr prescribed by the State requested to acquire the property. “©. Should any facility be constructed in either State by and for the benetit of the other State, as above provided, the construc- tion, repair, replacement, maintenance, and operation of such facility shall be subject to the laws of the State in which the facility 1s located, except that, in the case of a reservoir constructed in either State for the benefit of the other State, the proper officials of the
1950 State in which the facility is located shall permit the storage and release of any water to which the other State is entitled under this compact. “D. Either State having property rights in the other State acquired as provided in B of this article VIII shall pay to the political subdivisions of the State in which such prop- erty rights ure located, each and every ycar during which such rights are held, a sum of money equivalent to the average annual amount of taxes assessed against those rights during the 10 years preceding the acquisition of such rights in reimbursement for the loss of taxes to said political subdivision of the State, except that this provision shall not be applicable to interests in property rights the legal title to which is in the United States Payments so made to a political subdivision shall be in licu of any and all taxes by that subdivision on the property rights for which the payments are made. “Article 1X “The provisions of this compact shall not apply to or interfere with the right or power of either State to regulate within its boundaries the appropriation, use, und con- trol of waters allocated to such State by this compact. “Article X “The failure of either State to use the waters, or any part thereof, the use of which is allocated to it under the terms of this compact, shall not constitute a relinquish- ment of the right to such use to the other State, nor shail it constitute a forfeiture or abandonment of the right to such use. “Article XI “In case any reservoir is constructed in one State where the water is to be used princi- pally in the other State, sufficient water not to exceed 6 cubic feet per second shall he released at all times, if necessary for stock- water use and conservation of fish and wildlife. “Article XII “The provisions of this compact shall re- main in full force and effect unless amended or terminated by action of the legislatures of both States and consented to and approved by the Congress of the United States in the fume manner as this compact is required to be ratified and approved to become effective; provided, that in the event of such amend- ment or termination all rights theretofore established hereunder or recognized hereby shall continue to be recognized as valid by both States notwithstanding such amend- ment or termination. “Article XII “Nothing in this compact shall be con- strucd to limit or prevent either State from instituting or maintaining any action or pro- ceeding, legal or equitable, for the protection of any right under this compact or the en- forcement of any of its provisions. “Article XIV “A Nothing in this compact shall be deemed: “1, To affect adversely any rights to the use of the waters of the Snake River, includ- ing its tributaries entcring downstream from the Wyoming-Idaho State line, owned by or for Indians, Indian tribes, and their reserva- tions. The water required to satisfy these rights shall be charged against the allocation made to the State in which the Indians and their lands are located. “2. To impair or affect any rights or powers of the United States, its agencies, or instru- mentalities, in and to the use of the waters of the Snake River nor its capacity to acquire rights in and to the use of said waters. “3. To apply to any waters within the Yel- lowstone National Park or Grand Teton Na- tional Park. “4, To subject any property of the United States, its agencies or instrumentalities to CONGRESSIONAL RECORD—SENATE taxation by elther State or subdivisions thereof, nor to create an obligation on the part of the United States, its agents or instru- mentalities, by reason of the acquisition, construction or operation of any property or works of whatsoever kind, to make any payments to any State or political subdivi- sions thereof, State agency, municipality or entity whatsoever in reimbursement for the loss of taxes. “5. To subject any works of the United States used in connection with the contiol or use of waters which are the subject of this compact to the laws of any State to an ex- tent other than the extent to which these laws would apply witrout regard to this compact. “B Notwithstanding the provisions of A of this article, any beneficial uses hercafter made by the United States, o1: those acting by or under its authority, within either State, of the waters allocated by this com- pact shall be within the allocations heretn- above made for use in that State and shall be taken into account in determining the extent of use within that State. “Article XV “This compact shall become operative when approved by legislative enactment by each of the States, and when consented to by the Congress of the United States. “Article XVI “Wyoming hereby relinquishes the right to the allocation of stored water in Grassy Lake Reservoir, as set forth in Wyoming's reser- voir permit No 4631 Res. and evidenced by certificate No, R-1, page 318, and all claims predicated thereon. “In witness whereof the Commissioners have signed this compact in quadruplicate, one of which shall be filed in the archives of the Department of State of the United States of America and shall be deemed the author- itative original, and of which a duly certified copy shall be forwarded to the Governor of each of the States “Do.1e at the city of Cheyenne, in the State of Wyoming, this 10th day of October, in the Year of Our Loid, 1949. “Commissioners for Commissioners for Idaho Wyoming: Mark R Kulp, L C Bishop, N V Sharp, E B. Hitchcock, Charles H Welteroth, J. G Imeson, Roy Marquess, David P. Miller, Ival V Goslin, Carl Robinson, R. Willis Walker, Cirll D. Cranney, Alex O. Coleman, Clifford P. Hansen, Leonard E. Graham, Clifford 8. Wilson, Charles E Anderson, Lloyd Van Deburg. A K. Van Orden. “I have participated in the negotiations of this compact and intend to report favorably thereon to the Congress of the United States. “R J. NEWELL, “Representative of the United States of America. “Src.2 The right to alter, amend, or repeal this act is expressly reserved ” Mr. HUNT. Mr. President, I have no further comments to make. Mr. LUCAS. Mr. President, I wish I could have some bills passed by the Sen- ate as easily as my friend, the Senator from Wyoming, has been able to have his bill passed. I shall confer with him hereafter to see what magic power he uses to have a bill passed. Mr. HUNT. Mr. President, it is a mate ter of timing. Mr. LUCAS. It is now a quarter after five. There are only four or five Sena- tors present. I think the Senator's statement is a correct one. Mr. SALTONSTALL. Mr. President, will the Senator yield? Mr. LUCAS, I yield. 2575 Mr. SALTONSTALL. Mr. President, while there are only four Republican Members present on the floor at this time, I will say there has been a very thorough discussion of the bill. I do not want to have the impression go out that the Republicans are not on the job at quarter past 5 in the afternoon. Mr. LUCAS. The Republicans are al- ways on the job——— Mr. SALTONSTALL. I am glad the Senator realizes that. Mr. LUCAS. According to the Sena- tor from Massachusetts. Others may disagree with him at times. DISPLACED PERSONS The Senate resumed the consideration of the bill (H. R. 4567) to amend the Dis- placed Persons Act of 1948. Mr. LUCAS. Mr. President, not very much has been done toda: about the bill now pending before the Senate. I wish to announce that tomorrow the Senate will remain in session until about 7 o'clock. The senior Senator from Ne- vada {Mr. McCarran], chairman of the Committee on the Judiciary, in charge of the bill, is very anxious to zo to Nevada upon important business. I had hoped we might stay pretty close to the text and debate the amendments and pass the bill, so the Senator from Nevada could get away on Friday night. Apparently the Senate will not be able to conclude action on the bill by that time. It seems that consideration of the bill will run over until next week. Mr. SALTONSTALL, Mr. President, will the Senator yield? Mr. LUCAS I yield. Mr. SALTONSTALL. While I realize that it is a difficult question for him to answer, may I ask the majority leader if, from his statement, I am to gather the implication that there will be no vote on either the bill or amendments on Fri- day? Mr. LUCAS. No; I cannot guarantee to my friend from Massachusetts that there will be no votes on Friday on the bill or any amendments thereto. I hope we may have some votes tomorrow on some of the amendments. I certainly hope we may have some votes on Friday, and perhaps pass the bill then. How- ever, I cannot indicate to the Senator at this stage of the proceedings. Mr. SALTONSTALL, If I may ask the Senator a further question; does he in- tend, in his capacity as majority leader, to make any effort tomorrow, which is Thursday, to find a time at which it will be agreeable to Senators to vote, by unanimous consent, on the bill, and amendments thereto? Mr. LUCAS. I should think so. I made an attempt to find whether unani- mous consent could be obtained for a vote, but without success. No one ap- peared to know exactly when we might be able to vote on all the amendments and the bill, because there are some 13 or 14 amendments to the bill. Very few of them have been thoroughly debated. Mr. SALTONSTALL. Mr. President, I should like very briefly to state my posi- tion on House bill 4567, the business pending before the Senate. I am one of the sponsors of the substi- tute bill offered by the Senator from West
2576 Virginia [Mr. Kitcors) to H. R. 4567, Two years ago we passed a Displaced Persons Act. I voted in favor of it with some misgivings because I had been in Europe and visited four of the DP camps. I was afraid that it would prove to be impractical. I say impractical rather than inadequate because of the limita- tions placed upon it. I also felt that the numbers allowed to be admitted under it were not sufficient. I regret that the amendments offered by certain of us at that time were not adopted. I say that because, in substance, the substitute bill now offered contains on a modernized basis the amendments that we offered 2 years ago. The bill deals with a tremendous hu- man problem. It deals with many indi- vidual people who are the sufferers of the world war. Many of their problems will be with us for some years yet, but many of them can be solved if we give these People the opportunity to make new homes, become citizens of new countries, and be permitted to earn their own liv- ing in their own way to the best of their capabilities. I come from Massachusetts. We have, I believe, perhaps a greater diversity of population in Massachusetts than in any other State of the Union. The last census showed that we had just over 4,300,000 people. Of those 2,400,000 were born in another country or are the sons and daughters of parents born in another country. Yet our racial problems have becn few. They are few because basically the people want to live together and to understand each other. What is true in Massachusetts is true also of many other sections of this great country of ours, If the amendments contained in the Kil- gore substitute bill are adopted, the addi- tional people brought in under it will be comparatively few and those few will be well screened. I feel confident they will make good citizens. From our dif- ferent heritages we all agree that the United States has been built into the strongest nation in the history of the world today. Congress passed the Displaced Per- sons Act of 1948 in order to permit our country to join in carrying out its re- sponsibility in this great international problem. We want to live up to that responsibility. We want to take care of the problem once and for all, as far as we can properly take care of it. We want to do our share. In the past few weeks I have been sitting on the Senate Appropriations Subcommittee on the State Department. The United States contribution to the International Refugee Organization, commonly called the JYRO, is han- died by that Department. The State Department in asking for this appro- priation bases it on winding up the IRO by March 31, 1951. It has given the committee o letter in addition to its testimony that this fs positively the last appropriation that will be asked for the IRO. It is now expected that that organization will be terminated on March 81, 1951. By that time it is hoped if this and other countries live up to the commitments which they have made the persons who are stil] Hsted as displaced persons with the IRO will be settled CONGRESSIONAL RECORD—SENATE in one place or another and that the so-called hard core of institutional cases amounting in number to approximately 18,700 wil) be institutionalized in as sat- isfactory a manner as is possible. We must remember that if the IRO is disbanded, the people which it now helps will become to an even greater extent the charges of the United States because the United States is still supporting in great part the populations of western Germany and Austria. The Kilgore substitute bill has a num- ber of amendments to the committee bill. The fundamental ones, as I see it, are four in number: First. The date of who constitutes a displaced person is changed to January 1, 1949. This is the same as in the com. mittee bill. But, the expellees are lim- ited to 54,744. Thus 8 to 10 million people of German descent are elim- inated. This is fundamental if the change of date is to mean anything and the additional number of displaced per- sons from 205,000 to 337,000 and the 27,000 expellees being increased to 54,000 is to have any significance. Otherwise the bill becomes so watered down with expellees that the present displaced per- sons will not be benefitted. Second. The substitute bill eliminates the so-called de facto preference. The 40-percent de facto preference grants an unwarranted advantage to certain groups wholly because of national origin and works to the disfavor of Jewish and Catholic groups. In fact, this provision is merely positive proof that the com- mittee bill requires favoritism because of national origin. Third. It permits a broader descrip- tion for the adoption of orphans. Some of the present orphans will make the best of our future citizens if they are adopted into good families. It has seemed to us who favor the substitute bill that there are citizens in the United States outside of members of the armed forces, or Government employees, who can and will make good foster parents. Fourth. The substitute bill leaves the screening as it now is and does not put the screening exclusively in the Immi- gration and Amcrican Foreign Services. The IRO, as I understand, now deter- mines whether each of the prospective displaced persons can properly be con- stituted within the province of the IRO as a displaced person. If he passes this test, the further screening is in the hands of the Immigration and Naturalization Service and the Consular Service. I, personally, have confidence in Mr. Ugo Carusi. He has a fine record of pub- lice service. I believe he will take every precaution to stop from coming into our country, under the guise of a displaced person, any one of any nationality who in any way has subversive tendencies. His judgment on the questions before him is then checked by the Immigration Service and by American Foreign Service as to the desirability of such persons for admission into this country. This gives a further screening process, which we all consider so vital today. Mr. KILGORE. Mr. President, will the Senator yicld for a question? The PRESIDING OFFICER (Mr. Hunt in the chair). Does the Senator from MARcH 1 Massachusetts yield to the Senator from West Virginia? Mr. SALTONSTALL, I yield. Mr, KILGORE. Is not that really more screening than the ordinary quota immigrant receives in the ordinary process of immigration to the United States? Mr. SALTONSTALL, I would reply in the affirmative. I have been sitting on the Appropria- tions Committee recently, while the com- mittee has been considering the appro- priations for the State Department. In the committee we have gone into this matter with a very fine-tooth comb. I understand that a displaced person must thus go through three ecreenings, first, by the Displaced Persons Commission, which considers the person's eligibility as a displaced person; next, if he passes that test, his name is sent to the Con- sular office, and there he is screened by the Consular office; next, he is also screened by the Immigration Service. Furthermore, Mr. Miller, of the Immi- gration Service, I believe, tells us that even after a displaced person gets aboard ship, to sail to the United States, if any- thing undesirable develops in his case, he is stopped, and a further screening is mace. Mr. KILGORE. I should like to in- quire whether the Senator believes that the initial screening by the Displaced Persons Commission constitutes an addi- tional guaranty that the displaced per- son will not become a public charge in the United States, because in the screen- ing the Commission must have assurance of work for him and of © home for him in the United States, without displacing another worker or without displacing from a home a family already in the United States. Mr. SALTONSTALL. That is my un- derstanding. I thank the Senator for bringing out those two points. Mr. President, I shall not take the time of the Senate to argue at length on this subject. Let me merely say that in my opinion we must not permit further de- lay. We are dealing with human be- ings—men, women, and children. Many of them have been without homes for years. To them, time means everything. I need not tell the Senate of the cruel sufferings and terrible deprivations of the displaced persons who fied into dark- ness from the Communist terror. To me, there is no doubt that the people of the United States want to do their part in providing opportunities and a new life for their fair share of these displaced persons. We have good ground for doing so, from a practical point of view, be- cause we are now footing so much of the bill. We have good ground for doing our fair share from the point of view of pride in our country and the example we create to other countries who are less able to do their share than is our great country. I believe that the substitute bill will permit us—and will do so in a more prac- tical way than the committee bill will— to take our fair share, and will establish quotas which will be as fair and as equi- table as can be established in determin- ing the proper solution of this most dif- ficult human problem,
1950 Mr. President, I hope the substitute bill will prevail as far as possible in its present form, for it represents the think- ing of men who have operated this pro- gram, whose judgment is close to it, and who are most intimate with the difficult questions yet unsolved. This great coun- try of ours accepted its responsibility in 1948. Let us try in 1950 to see that it lives up to this responsibility in a prac- tical way, in the light of the experience of the past 2 years. Again I say that I hope the substitute bill prevails when the vote is taken. JOINT COMMITTEE ON REDUCTION OF NONESSENTIAL FEDERAL EXPENDI- TURES—NOTICE OF ADDRESS BY SEN- ATOR BYRD Mr. BYRD. Mr. President, I desire to address the Senate, but I am unable to do so this afternoon, I shall leave Wash- ington on official business in the early afternoon tomorrow, and I ask unani- mous consent that I be recognized when the Senate convenes tomorrow. The PRESIDING OFFICER. Is there Objection? The Chair hears none, and it is so ordered. EXECUTIVE SESSION Mr. LUCAS. I move that the Senate proceed to the consideration of executive business. The motion was agreed to; and the Scnate proceeded to the consideration of executive business. EXECUTIVE MESSAGES REFERRED The PRESIDING OFFICER (Mr. Hunt in the chair) laid before the Sen- ate messages from the President of the United States submitting sundry nomi- nations, which were referred to the ap- propriate committees. (For nominations this day received, see the end of Senate proceedings.) EXECUTIVE REPORT OF A COMMITTEE The following favorable report of a nomination was submitted: By Mr. JOHNSTON of South Carolina, from the Committee on Post Office and Civil Service: Roy Victor Peel, of Indiana, to be Director of the Census. The PRESIDING OFFICER. If there be no further reports of committees, the clerk will state the nominations on the calendar. MUNICIPAL COURT FOR THE DISTRICT OF COLUMBIA The Chief Clerk read the nomination of Mary C. Barlow, of the District of Columbia, to be associate judge of the Municipal Court for the District of Co- lumbia. Mr. SALTONSTALL. Mr. President, I should like to ask the majority leader if he knows whether this nomination has been reported by the full committee. Mr. LUCAS. I believe it is a unani- mous report. Mr. SALTONSTALL. Mr. President, I have no objection to the confirmation of either of the nominations on the cal- endar. The PRESIDING OFFICER. Without objection, the nomination is confirmed. The clerk wil] state the other nomina- tion on the calendar. CONGRESSIONAL RECORD—HOUSE The Chief Clerk read the nomination of Thomas C. Scalley, of the District of Columbia, to be an associate judge of the Municipal Court for the District of Columbia. The PRESIDING OFFICER. Without objection, the nomination is confirmed. Without objection, the President will be notified forthwith of the confirma- tion of the nominations. RECESS Mr. LUCAS. As in legislative session, I move that the Senate stand in recess until 12 o’clock noon tomorrow. The motion was agreed to; and (at 5 o’clock and 36 minutes p. m.) the Senate took a recess until tomorrow, Thursday, March 2, 1950, at 12 o’clock meridian. NOMINATIONS Executive nominations received by the Senate March 1 (legislative day of Feb- ruary 22), 1950: PUBLIC UTILITIES COMMISSION OF THE DISTRICT OF COLUMBIA Kenneth W. Spencer, of the District of Columbia, to be a member of the Public Utilities Commission of the District of Columbia for the remainder of the term expiring June 30, 1950. UnrTep STATES DISTRICT JUDGE William Lee Knous, of Colorado, to be United States district Judge for the district of Colorado, vice Hon. John Foster Symes, retiring. The following-named officers of the Navy for temporary appointment to the grade of rear admiral in the corps indicated; LINE Harry B. Jarrett MEDICAL CORPS Frederick C, Greaves John Q Owsley SUPPLY CORPS Charles L. Austin George F. Yoran CONFIRMATIONS Executive nominations confirmed by the Senate March 1 (legislative day of February 22), 1950: MUNICIPAL COURT FOR THE DISTRICT OF COLUMBIA Mary C. Barlow to be associate judge of the municipal court for the District of Co- lumbia to fill a new position. Thomas C. Scalley to be associate judge of the municipal court for the District of Columbia to fill a new position. HOUSE OF REPRESENTATIVES WEDNESDAY, MARCH 1, 1950 The House met at 12 o'clock noon. The Chaplain, Rev. Bernard Bras- kamp, D. D., offered the following prayer: O Thou who art of all friends the nearest and of all teachers the wisest, grant that during this day we may yield ourselves gladly and unreservedly to the guidance of Thy Spirit. May we be numbered among those who, in this troubled time, are orienting their lives to the mind and heart of our blessed Lord and learning the secret of 2577 His incredible courage and unconquera- ble hope. Show us how we may lift and lessen the burdens and sorrows and fears which weigh so heavily on many members of the human family. Humbly we offer our prayer in Christ's name. Amen, The Journal of the proceedings of yes- terday was read and approved. RESIGNATION FROM COMMITTEE The SPEAKER laid before the House the following communication: Marcu 1, 1950. The Honorable the Speaker, House of Representatives, Washington, D.C. Dear Mr. SPEAKER: I hereby tender my rese- ignation as a member of the Committee on Veterans’ Affairs. Respectfully, HERBERT A. MEYER. The SPEAKER. Without objection, the resignation will be accepted. There was no objection. PERMISSION TO ADDRESS THE HOUSE Mr. STEFAN. Mr. Speaker, I ask unanimous consent to address the House for 1 minute and to revise and extend my remarks. The SPEAKER, Is there objection to the request of the gentleman from Nebraska? There was no objection. (Mr, Steran addressed the House. His remarks appear in the Appendix.] Mr. SHEPPARD. Mr. Speaker, I ask unanimous consent to address the House for 1 minute and to revise and extend my remarks, The SPEAKER. Is there objection to the request of the gentleman from California? There was no objection. [Mr. SHEPPARD addressed the House, His remarks appear in the Appendix, ] EXTENSION OF REMARKS Mr. HELLER asked and was given per- mission to extend his remarks in the REeEcorp, Mr. TACKETT asked and was given permission to extend his remarks in the Recorp in three instances and include editorials. Mr. BIEMILLER asked and was given permission to extend his remarks in the Recorp and include a magazine article. PERMISSION TO ADDRESS THE HOUSE Mr. FEIGHAN. Mr. Speaker, I ask unanimous consent to address the House for 1 minute and to revise and extend my remarks and include a telegram. The SPEAKER. Is there objection to the request of the gentleman from Ohio? There was no objection. (Mr. FercHan addressed the House, His remarks appear in the Appendix. ] THE LATE R. D. W. CONNOR Mr. DURHAM. Mr. Speaker, I ask unanimous consent to address the House for 1 minute and to revise and extend my remarks and include an editorial from the Durham Herald. The SPEAKER. Is there objection to the request of the gentleman from North Carolina? There was no objection.
2578 Mr. DURHAM. Mr. Speaker, I call to the attention of this body the recent death of Dr. R. D. W. Connor, the first Archivist of America. He was a great historian and a scholar, and has con- tributed much to the learned societies of this country. DR. CONNOR'S CONTRIEUTIONS AN ENDURING MEMORIAL The debt of North Carolina to Robert Digges Wimberley Connor will be readily evident to one who read his obituary in this and othor newspapers. To the promotion of education and to the preservation of history he devoted a singularly active life which passed the span of threescore years and ten The degree of his ability and of his success is measured by the high posts which he filled with distinction. Tae more credit is his because he pioneered in certain fields. In eailicr years, when associated with the pub- lic schools, he did notable work in promot- ing these young institutions Teaching and a@ principalship led to service as secretary of the North Carolina Educational Campaign Committee, From this work in the interest of schools Dr. Connor launched the Historical Commis- sion. For 14 years he directed the work of the commissicn, now the department of his- tory and archives, before Joining the faculty of the history department of the University of North Carolina. He was also a pioncer in the establishment of another archives dc- partment, this time that of the United States, which he directed for 7 yerrs Dr, Connor wrote much, and his work Is of especial importance for North Carolina, for he has made available a great mass of histurical information concerning the State’s past. In his writing, in his teaching, and in preserving Government documents and making possible their use by researchers, Dr. Connor has made to his State and to his Nation contributions which will be an en- during memorial. LOYALTY INVESTIGATIONS BY THE FBI Mr. HOLIFIELD. Mr. Speaker, I ask unanimous consent to address the House for 1 minute and to revise and extend my remarks. The SPEAKER. Is there objection to the request of the gentleman from Cal- fornia? There was no objection. Mr. HOLIFIELD. Mr. Speaker, I think the House should know exactly what it did in the adoption of the Smith amend- ment yesterday. It ordered the FBI to report to the National Science Founda- tion that a person investigated is loyal to the United States. The FDI never eval- uates an investigative report. The FBI may investigate a person and present evi- dence for and against that person to the agency that requests the investigation. This is the first time in American history, however, when the FBI has been charged by the Congress to evaluate, report, and certify the loyalty or disloyaity of an in- dividual. This is the OGPU system of Russia, where the OGPU investigates and then comes to a conclusion as the result of its evaluation. Mr. CANFIELD. Mr. Speaker, will the gentleman yield? Mr. HOLIFIELD. I yield to the gen- tleman from New Jersey. Mr. CANFIELD. The gentleman is awarc of the fact that the committee accepted the amendment? CONGRESSIONAL RECORD—HOUSE Mr. HOLIFIELD. I am aware of that. I shall vote for the bill with the amend- ment in it, but if the bill comes back from conference with that amendment in it, I shall vote against the bill. Some of the Members of the House are so jittery on the subject of communism that they seem to have lost their judgment. This is an example of the action of Members who constantly profess their enmity against totalitarian procedures, and here we see them embracing an amendment that would change the FBI from an in- vestigative agency to an agency with power of judgment on the merits of its own evidence. This was the function of Hitler's Gestapo and Stalin’s OGPU and MKVD. EXTENSION OF REMARKS Mr. TAURIELLO asked and was given permission to extend his remarks in the Record and include some resolutions adopted by the Erie County Board of Supervisors. Mr. NOLAND asked and was given per- mission to extend his remarks in the REcorD and include an article from Col- Her’s weekly. Mr. PRICE asked and was given per- mission to extend his remarks in the ReEcorpD. Mr. GRAHAM asked and was given permission to extend his remarks in the ReEcorp and include an editorial. THE COAL SITUATION Mr. VURSELL. Mr. Speaker, I ask unanimous consent to address the House for 1 minute and revise and extend my remarks. The SPEAKER. Is there objection to the request of the gentleman from Illinois? There was no objection. Mr. VURSELL. Mr. Speaker, there is chaos in the United States today caused by the coal strike which has closed schools, churches, curtailed hospital service, idled more than 600,000 workers and brought misery and suffering into American homes. Who is responsible? It was the duty of the President to prevent this chaos by living up to his oath of office, and carry out the mandate of the Constitution “to faithfully execute and enforce the laws.” Had he invoked the law months ago when the crisis threatened, there is every rea- son to believe that the men who were then working would have remained on the job as they did on a similar oc- currence 3 years ago. Had this been done the miners would not have lost $400,000,000 in wages, hun- dreds of thousands of railroad men and others would not have been thrown out of work, many of whom are now eligible for unemployment insurance at the ex- pense of the Government. For 2 years the President has made a political issue of the Taft-Hartley law. He has branded it as unfair and unjust to labor and demanded its repeal. He re- fused to use it in the steel strike, and de- layed its use until too late in the coal strike. There is every reason to believe that the miners did not believe he would invoke this law, and hence the general strike. MarcH 1 The President cannot hope great or- ganizations to respect a law which he continues to denounce as being against their best interests. That places the re- sponsibility for the chaotic conditions now existing squarely on the President’s failure to act. Mr. Speaker, his failure to act promptly has cost the economy of the Government over @ billion dollars. The President’s own Federal Reserve Board reported to- day “‘that the industrial production of the Nation went down in February be- cause of the coal strike.” The Presi- dent’s own Council of Economic Advisers has reported “that the coal strike has forced the Council to change its previous optimistic prediction for good business in 1950.” ENGLAND Mr. WERDEL. Mr. Speaker, I ask unanimous consent to address the House for 1 minute and revise and extend my remarks, The SPEAKER. Is there objection to the request of the gentleman from Cali- fornia? There was no objection. Mr. WERDEL. Mr. Speaker, on Au- gust 22, 1949, a great scholar, the Hon- orable Tom O’Brien, Labor Party mcm- ber of the House of Commons from Not- tingham Northwest, said at Finchley, England: We would rather take the risk of civilize ing communism than be kicked around by the unlettered, pot-bellied money magnates of the United States. He was apparently dissatisfied with our unwillingness to take an additional part of our standard of living to socialize his country. Today, it seems that England, with its unwritten constitution and its legisla- ture of one House domination, is appar- ently emerging from a violent experi- ment. Free men there are discovering that they must live by laws and not by executive decrees if they are to remain free. Surely free men in America also realize that a continuation of the experi. ment by us would be even more hazard- ous. A changed meaning of our written Constitution through demagogucry or in- competence of the judiciary would be permanent innature. Legislation passed in a two-House legislature by elected weathercocks, who can only indicate the direction of @ probable storm, would be more difficult to correct. So that he may understand, I will say in the vernacular of the Honorable Thomas O’Brien: The British totalitar- ian sow of Fabian demagogy and corrup- tive prophecy has been lying in His Majesty’s productive trough for 5 years. The claimed prodigies of her infertility are in the mud about her to evidence her presumptive amours. Even though she was forced to move jn the elections last Thursday, the gentleman from North- west Nottingham was able to hang on. The relations between our countries would have benefited had his constit- uents told his kind to root for themselves, That would also have contributed some- thing to his edification and might even have added a small amount to the gen- eral welfare of England and America.
1950 WORLD COMMITTEE OF PARTISANS OF PEACE Mr. McCORMACK. Mr. Speaker, I ask unanimous consent to address the House for 1 minute. The SPEAKER. Is there objection to the request of the gentleman from Mas- sachusetts? There was no objection. Mr. McCORMACK. Mr. Speaker, I have read with considerable interest press reports concerning the desire of a delegation, appointed by an organiza- tion known as the World Committee of the Partisans of Peace, to address an appeal to the United States Congress. This delegation represents an organi- zation which is almost universally recog- nized as an instrument of the Soviet Union. The relationship between this committee and the U. S. S. R. has ade- quately been documented by the hard facts of recent history. Herctofore, the function of this Sov- fet front-organization has been manip- ulation of the peace symbol in ways cal- culated to exploit for selfish Soviet pur- poses the sincere longing for peace of hundreds of millions of souls throughout the world. It has shown little genuine concern for peace as that term is under- stood in the free world, but abundant zeal for the establishment of conditions favorable to extension of totalitarian Soviet power. This Soviet-Communist agency now wishes, under cover of a peace front to exercise its fraudulent propaganda in these Chambers. It is interesting that it has announced its decision to do so without reference to the wishes of this sovereign body. It is significant—and this should care- fully be noted—that the appeal which it intends to make is in its essentials identi- cal with the resolution, condemning the United States for preparing a new war of aggression, introduced last fall in the United Nations by Soviet Foreign Min- ister Vishinsky. I wish to recall that resolution was rejected by the over- whelming majority of the United Na- tions General Assembly. It is singularly presumptuous of this Soviet front organization and its spon- sor to assume that the legislative branch of this Government, would, for a single moment entertain any fraudulent ap- peals calling on this body in effect to abandon its principles and disregard its solemn responsibilities to the American people and their allies for the security of the United States and the preserva- tion of democratic institutions through- out the free world. I am sure the State Department rec- ognizes the situation and will govern it- self accordingly in the proper way. Mr. MARTIN of Massachusetts. Speaker, will the gentleman yield? Mr. McCORMACK. I yield. Mr, MARTIN of Massachusetts. I agree with the remarks of the gentle- man from Massachusetts |Mr. Mc- Cormack], and I hope the State Depart- ment will take the proper action and not permit the visit to be made. Mr. McCORMACK. I thank the gen- tleman for his observation. Mr. CONGRESSIONAL RECORD—HOUSE The SPEAKER. The time of the gen- tleman from Massachusetts |Mr. Mc- CorMACcK] has expired. ASSISTANCE TO GRIAT BRITAIN Mr. RICH. Mr. Speaker, I ask unani- mous consent to address the House for 1 minute, and to revise and extend my re- marks. The SPEAKER. Is there objection to the request of the gentleman from Penn- sylvania? Mr. RICH. Mr. Speaker, if Great Brit- ain in her recent election decided that she wants a Socialist Government, that is Great Britain’s business. If Great Britain seems to want Atlee as their Prime Minister instead of Churchill, that is Great Britain’s business. That does not bother me. But if Great Britain, in her desire to keep a Socialist Govern- ment comes here and asks us to contrib- ute a billion and a half to keep that Socialist Government going, that is my business, and it is your business. It is your business not to tax the taxpayers of this country to maintain such a govern- ment as that. If our Government went over there and tried to regulate all those governments of Europe, Asia, and Africa, we would only be meddling in somebody else’s business. We ought to stay out and attend to our own business. We will not have any business to attend to pretty soon if we do not stay at home. We have enough to do to run our own country successfully for the benefit of the American people. That’s our busi- ness. Its a big job, when the President will not enforce our laws. When strikes close down our industries and throw people out of employment. When our homes get cold because they have no coal, Its your business and the miners’ business to work for America not some foreign power. Will we ever get awake to our push for socialism in America. God forbid that it happens here. Wake up Congress ere it is too late, wake up America and clean out the Fair Deal ere it 1s too late. Be nifty and thrifty in fifty for America. The SPEAKER. The time of the gen- tleman from Pennsylvania [Mr. RicuH] has expired. EXTENSION OF REMARKS Mr. MARTIN of Massachusetts asked and was given permission to extend his remarks in the Recorp in two instances, Mr. FULTON asked and was given per- mission to extend his remarks in the RecorpD and include a letter to the sec- retary of the United Engineering Foundry Co. Mr. FULTON asked and was given per- mission to extend his remarks in the RecorpD and include an article from the New Yorker, notwithstanding the fact that it is estimated the extra cost will amount to $271. Mr. HARVEY asked and was given permission to extend his remarks in the Recorp and include an editorial en- titled “World War III: Is It Closer Than We Think?” Mr. REED of New York asked and was given permission to extend his remarks in the Recorp in five instances, and in each case to include extraneous matter, 2579 SPECIAL ORDER GRANTED Mr. MASON asked and was given pere mission to address the House on tomore- row for 10 minutes, following the busi- ness on the Speaker’s desk and any other special orders heretofore entered. ‘ELECTION OF MEMBERS TO COMMITTEES Mr. MARTIN of Massachusetts. Mr. Speaker, I offer a resolution (H. Res, 498) and ask for its immediate conside eration. The Clerk read as follows: Resolved, That the following-named Mem-= bers be, and they are hereby, elected mem- bers of the following standing committees of the House of Representatives: Committce on Armed Services: HerpeaT A. Meyer, of Kansas. Committee on House Administration: WILLIAM B. WIDNALL, of New Jersey. Committee on Veterans’ Affairs: WILLIAM H. Bates, of Massachusetts. The resolution was agreed to. A motion to reconsider was laid on the table. TAXES ON BREAD AND MILK Mr. EDWIN ARTHUR HALL, Mr, Speaker, I ask unanimous consent to ad- dress the House for 1 minute and to revise and extend my remarks. The SPEAKER. Is there objection to the request of the gentleman from New York? There was no objection. Mr. EDWIN ARTHUR HALL. Mr. Speaker, in reading recent articles in the press, I have been concerned about a statement that there are 78 different kinds of taxes on a loaf of bread and over 100 taxes on a quart of milk. Those are fundamental staffs of life, and the consuming public certainly should not be called upon to pay a number of dif- ferent taxes, or any tax, for that matter, on those necessities of life. For that rea= son, apprehensive as I am, I have intro- duced a resolution calling for the creae tion of a committee of this House to in- vestigate those taxes. While we are pro- posing the repeal of a number of taxes this year I think we ought to consider the repeal of all taxes on a loaf of bread and @ quart of milk. The SPEAKER. The time of the gen- tleman from New York has expired. THE COAL SITUATION Mr. FORD. Mr. Speaker, I ask unani- mous consent to address the House for 1 Minute and to revise and extend my remarks, The SPEAKER. Is there objection to the request of the gentlerin from Michigan? There was no objection. Mr. FORD. Mr. Speaker, the chaos created by the coal situation is well known to all of us. It has been aggra- vated, however, by failure of the admin- istration to extend title I of the FHA legislation. For example, the city of Grand Rapids, a community of nearly 200,000 citizens, we have at the present time, before the various banks and other loaning institutions, applications for over 500 title I loans for conversion from coal to oil and gas. These families need help, but the Democratic Party leadership in
2580 the Congress continues to roadblock af- firmative action fo, the extension of FHA legislation. One local bank has 104 lapsed title Iapplications. Another bank cannot act on 260 conversion applica- tions because the Democratic leadership sits tight and lets the American public slowly freeze to death. Do you want to know what the truth is? Here it is, straight from the shoul- der. The administration wants the so- called co-op housing provision included in any new FHA law. It is well known that this $2,000,000,000 co-op housing proposal will not and cannot be approved in the Congress on its merits. In order to put this expensive co-op program over, the administration is blackmailing the Members of Congress by saying “No FHA extension unless you include this new multi-million-dollar housing program.” This flagrant bribery by the administra- tion should be vigorously condemned. The thousands of families who now have gas and oil furnaces because of title I in FHA are fortunate, but those who cannot get the same aid at this time can blame the Democratic congressional leadership and no one else. I ask, when will the Democrats realize that the citi- zens of the United States are demanding action, not inaction, in attempting to solve the coal crisis? Congress should immediately approve a resolution ex- tending title I and the other proven sec- tions in FHA legislation. The expensive co-op housing proposal should be brought up later and its fate decided strictly on its own merit. I call upon you to do something today. PERMISSION TO ADDRESS THE HOUSE Mr. MEYER. Mr. Speaker, I ask unanimous consent to address the House for 1 minute and to revise and extend my remarks. The SPEAKER. Is there objection to the request of the gentleman from Kansas? There was no objection. Mr. MEYER. Mr. Speaker, on Jan- uary 20, 1949, Harry 8. Truman raised his hand and swore to preserve, protect, and defend the Constitution of the United States. The Constitution contains a sweeping direction to the President. It says that “he shall take care that the laws be faithfully executed.” It does not say that he shall carry out the execution of some laws. It affords him no choice and he can make no dis- tinction and still meet the constitutional test of his conduct in office. Mr. Speaker, there is considerable in- dignation expressed because of the de- fiance of a court order by the members of the United Mine Workers. Whether they will be held to be in contempt I do not predict. They are not mining coal. The order of the court was meant to bring them back to work. For weeks upon weeks the coal con- troversy was forming. Like the plains country “twister” it could be seen far off, gathering and taking form. The basic Jaw for resolving disputes is knowh as the Taft-Hartley Act. Because of the names attached to it and because it was enacted by the Eightleth Republican CONGRESSIONAL RECORD—HOUSE Congress, which is the Truman scape- goat for all the White House blunders, waste, and weaknesses, there was a pro- longed and contemptuous delay before the President acted under this basic law. Driven into a corner at last by the rising tide of public indignation, he indulged in the amazing performance of applying the law while pretending that it was the decision of someone else. That was the climate that was created by the President for the court order, Is anyone surprised that the miners, with the example of the President of the United States before them, should begin choosing which court orders to ignore? If the President tries to nullify an act of Congress by refusing to administer it, to execute it, as the Constitution directs, is it surprising that some others should follow the pattern he set? Defiance of law is the privilege of no one man—even the President. THE COAL SITUATION Mr. ELSTON. Mr. Speaker, I ask unanimous consent to address the House for 1 minute and to revise and extend my remarks. The SPEAKER, Is there objection to the request of the gentleman from Ohio? There was no objection. Mr. ELSTON. Mr. Speaker, the coal crisis in the Cincinnati area is rapidly reaching serious proportions. Hospitals, orphanages, and other institutions are now receiving allocations of coal under the city’s emergency program. Under this share-the-coal emergency plan in- dustries are voluntarily sharing their subnorma! stock piles of coal. The time is not far off when even these meager supplies will be exhausted. Now that the country is face to face with an extreme emergency due to lack of coal, there is a tendency in some quar- ters to shift the blame from those who are responsible. Some have attempted to place the blame on Congress despite the fact that the executive department oi: the Government, and not Congress, is charged with the responsibility of law en- forcement. There can scarcely be any contention that the law is not adequate in view of the far-reaching provisions of the Taft-Hartley law. It is understandable, of course, that those who have been most vociferous in their denunciation of the Taft-Hartley law are prominent among those who now blame Congress for the present deplor- able situation. Notwithstanding the alarming impli- cations of a prolonged coal strike and disappearing coal supplies, the President stated on several occasions during recent weeks that he saw no emergency. The reasons for this position are clear. Ad- mitting the existence of an emergency would have required the President to in- voke a law whose repeal he has at all times advocated; a law he has consist- ently ridiculed although he used it on seven former occasions when the public welfare was threatened. The President inexcusably delayed the use of the Taft- Hartley law, although it is a matter of history that the same law was proven to be adequate on all of the previous occa- sions when its provisions were invoked, MARCH 1 The disrespect which the miners are today exhibiting toward the Taft-Hart- ley law is no less than the disrespect so frequently expressed by the President himself. It should now be quite plain to everybody that if the President’s de- mands for repeal of this law had been complied with there would be no law in force today to deal with strikes which im- peril the public health, safety, and wel- fare. The truth of the matter is that the public welfare has been sacrificed for votes. The Nation is paying the bill through hardship and unemployment. LOYALTY RECORDS OF FEDERAL EMPLOYEES Mr. SCRIVNER. Mr. Speaker, I ask unanimous consent to address the House for 1 minute and to revise and extend my remarks. The SPEAKER. Is there objection to the request of the gentleman from IXan- sas? There was no objection. Mr. SCRIVNER. Mr. Speaker, it is difficult to understand the President’s stubborn refusal to give to the commit- tees of Congress the loyalty records of Federal employees. If there is nothing in those records that would harm any- one, the President owes it to those people to let that be shown. If there is some- thing in those records that would in- criminate any Federal employees, the President owes it to the American pub- lic and the United States Congress to make such records available. EXTENSION OF REMARKS Mr. KEATING asked and was given permission to extend his remarks in the Appendix of the Recorp in two separate instances and in each to include edi- torials. Mr. SMITH of Wisconsin asked and was given permission to extend his re- marks in the Appendix of the REcorpD in two instances and in each to include excerpts. Mr. NORBLAD asked and was given permission to extend his remarks in the Appendix of the Recorp in two instances ena in each to include extraneous mat- er, Mr. TOWE (at the request of Mr. AUCHINCLOSS) was given permission to extend his remarks in the Recorp and include an address by the Reverend Row- land F. Nye. Mr. LODGE asked and was given per- mission to extend his remarks in the Recorp in two instances and include extraneous material. Mr. KENNEDY asked and was given permission to extend his remarks in the ReEcorp and include two articles. PLANES IN THE HANDS OF THE CHINESE Mr. LODGE. Mr. Speaker, I ask unanimous consent to address the House for 1 minute. The SPEAKER. Is there objection to the request of the gentleman from Con- necticut? There was no objection. Mr. LODGE. Mr. Speaker, there fs still time for us to prevent the transfer to the Chinese Communists of 71 planes Jargely paid for by the American tax- payers. This is a $100,000,000 prize
1950 which would triple the Communist air force. This ready-made air transport system would probably insure the defeat of the anti-Communist forces on For- mosa at a time when we have recog- nized the Bao-Dai regime in Indochina and they have asked us for a loan of $100,000,000 for economic rehabilitation. Furthermore, while the British court in Hong Kong cedes this valuable equip- ment to our self-styled enemies, the French military leaders desire American military equipment for the defense of Indochina and the Far East. We can- not win this grim struggle with a policy which calls for doing one thing in one area and which results in doing the op- posite in another area. In spite of the court proceedings de- nying receivership and vacating two in- junctions these planes are not yet reg- istered under Hong Kong Jaws. Accord- ingly there is still time for us to take effective action. I believe that this mat- ter should be raised to the level of issu- ing formal notcs to the British Govern- ment. We should point out to them that it is hardly sensible for them to ask Us for planes under the military-aid legis- lation while they transfer an important number of American planes to the very forces from which we are seeking to protect western Europe by granting them arms aid. It is time that we and the British acted together in our own inter- ests and in the cause of peace and free- dom. For, in the words of Benjamin Franklin, if we do not hang together then assuredly we shall hang separately. The SPEAKER. The time of the gen- tleman from Connecticut has expired LOYALTY INVESTIGATIONS Mr. O'HARA of Illinois. Mr. Speaker, I ask unanimous consent to address the House for 1 minute. The SPEAKER. Is there objection to the request of the gentleman from Illi- nois? There was no objection. Mr O’HARA of Illinois. Mr. Speaker, to the men and women of the Second Congressional District of Illinois it is unthinkable that there should be given tc any police body the power to pass upon the loyalty of citizens. Yesterday in committee I voted against the Smith amendment, and in so voting I was rc- sponding to the sentiment of the good, p: triotic people of the district I rep- resent This amendment would go further in the establishment of a police state than anything that has been suggested up to this time by the most rabid advocate of police statism. It docs not end with ord-ring a police investigation of every scientist applying for a scholarship. It foes much further—to hitherto un- heard-of leneths. It gives the investi- gating police the power to exclude the applicant on a police finding, without bearing and without judicial review, that such applicant, in the opinion of the police, is not loyal. I am sure that Mr. Hoover of the FBI would be the first to say that such power—the power both to investigate and to pass judgment— should not be vested in his or any other policing body. CONGRESSIONAL RECORD—HOUSE Furthermore, the Smith amendment makes ineligible any applicant who at any time, whether with knowledge and disloyal intent or not, belonged to an organization which the Attorney Gen- eral later declared subversive. When hysteria goes to the extreme of making the billy of the policeman the crosier of benediction, it is time that we got back to common sense and the good, old-fashioned sort of American pa- triotism. I endorse the position taken by the distinguished gentleman from California (Mr. HouiriELp], and I shall follow the pattern he has expressed here, PLANES IN THE HANDS OF THE CHINESE Mr. LARCADE, Mr. Speaker, I ask unanimous consent to address the House for 1 minute. The SPEAKER. Is there objection to the request of the gentleman from Louisiana? There was no objection. Mr. LARCADE. Mr. Speaker, I wish to join the distinguished gentleman from Connecticut [Mr. Lopate] in protesting the reported attitude of the British offi- cials in Hong Kong in the disposition of 97 war planes to which he has referred. A Louisiana citizen is involved in this transaction. I refer to one of our most distinguished citizens. The gentleman to whom I refer is Gen. Claire L. Chennault, from Loui- siana, who has a brilliant record in the war in China. Prior to our entry in World War II General Chennault was at the head of the Flying Tigers, who contributed so much in preventing Japan to conquer China, and the feats performed under his leadership have been the subject of books, moving pictures, and will go down in history as an epoch in and accomplish- ment of intrepid American fliers, all of whom entered the United States Air Force when our country entered the war. When China was joined by the United States in World War II, General Chen- nault continued to direct the operations of the combined air forces in the Asiatic theater, and due to his record and ac- complishments was promoted to the high rank of major general. I understand that after the end of the war General Chennault was engaged by the Nationalist Government to operate a system of air lines in China. General Chennault invested his own funds in the project, together with other American citizens, and purchased the planes and equipment in order to operate this air- line in China. When the Nationalist Government was forced to flee from the area where these planes were based General Chennault was forced to save his property, and un- der existing circumstances there was no other place available except the Interna- tional Airport at Hong Kong, China, a British possession. Iam familiar with what has transpired with respect to the battle for possession of these planes, and unless and until the British authorities issue a certificate for the withdrawal of these planes the same cannot be moved out of Hong Kong. General Chennault and his associates, who claim ownership of these planes, are 2581 American citizens, and the rights of our citizens should be protected. I therefore trust that our Government will take appropriate steps in the prem- ises. THE ATTACK OF THE WASHINGTON POST ON THE AMERICAN LEGION Mr. RANKIN. Mr. Speaker, I ask unanimous consent to address the House for 1 minute and to revise and extend my remarks, The SPEAKER. Is there objection to the request of the gentleman from Mis- sissipp1? There was no objection. Mr. RANKIN. Mr. Speaker, the con- temptible attack on the American Le- gion made by the Washington Post, which ought to be termed the uptown edition of the Communist Daily Worker now, should not go unnoticed. That publica- tion comes out in defense of what it calls the AVC, which calls itself the American Veterans’ Committee. It is not a veterans’ committee at all. Half of its members never were in the service at any time. It is literally teeming with Reds and fellow travelers. The American Legion is one of the great patriotic organizations of America. It does not need any defense at my hands, But I am tired of this scurrilous publica- tion the Washington Post, which has done more to stir up race trouble in the District of Columbia than anything else by attacking the American Legion, the Veterans of Foreign Wars, the AMVETS and the DAV who are trying to take care of the American veterans. They know that there are some parts of this Hoover Commission report that will not work. We are not going to destroy our veter= ans’ hospital system. COTTON AND PEANUT ACREAGE ALLOTMENTS Mr. COOLEY. Mr. Speaker, I ask unanimous consent to take from the Speaker’s desk the resolution (H. J. Res, 398) relating to cotton and peanut acre- age allotments and marketing quotas under the Agricultural Adjustment Act of 1938, as amended, with Senate amend- ments thereto, disagree to the Senate amendments, and agree to the conference asked by the Senate. The SPEAKER. Is there objection to the request of the gentleman from North Carolina? [After a pause.] The Chair hears none, and appoints the following converees: Messrs. COOLEY, PACE, POAGE, Grant, Hore, Aucust H. ANDRESEN, and Murray of Wisconsin. EXTENSION OF REMARKS Mr, COOLEY asked and was given per- mission to extend his remarks in the REcorpD and include an address delivered by his colleague the gentleman from North Carolina [Mr. DurHaAmM]. FORT RUCKMAN MILITARY RESERVATION Mr. BONNER. Mr. Speaker, I ask unanimous consent for the immediate consideration of the bill (H. R. 7477) roviding for the conveyance to the own of Nahant, Mass., of the Fort Ruck- man Military Reservation. The Clerk read the title of the bill,
2582 The SPEAKER. Is there objection to the request of the gentleman from North Carolina? Mr. MARTIN of Massachusetts. Mr. Speaker, reserving the right to object, I understand there is a unanimous report by the committee? Mr. BONNER. That is correct. The subcommittee reported the bill out unan- imously as well as the full committee. Mr. MARTIN of Massachusetts. This is just a little piece of land that is no longer needed by the Government? Mr. BONNER. It was an old World War I fort, and it was used in World War II. It is now proposed to turn it over to the city of Nahant for educa- tional and recreational purposes. There will be no great loss to the Government. There is included in the bill reversionary rights to protect the interests of the Government, and should the city of Na- hant fail to use the property for the pur- pose for which it is turned over, then it will again revert tothe Government. So, the Government is amply protected, and there will be no loss occasioned. Mr. McCORMACK. Mr. Speaker, if the gentleman will yield the gentleman from Massachusetts |Mr. Lane] is vitally interested in this matter. Mr. BONNER. The gentleman has ex- pressed great interest in the bill and has thoroughly convinced the committee that it is the proper thing to do. The city of Nahant also is very much interested. Mr. Lane, of Massachusetts introduced the original bill. Mr. RICH. Mr. Speaker, will the gen- tleman yield? Mr. BONNER. I yield to the gentle- man from Pennsylvania, Mr. RICH. We had hearings on this bill several times, and the committee is unanimous in its desire to turn this prop- erty over to the town of Nahant, believ- ing that it is for the best interest of the country in every way, for educationul purposes. Mr, BONNER. I will say that the gentleman from Pennsylvania was most diligent in seeing that the Government was properly protected. Mr. LANE. Mr. Speaker, will the gen- tleman yield? Mr. BONNER. I yield to the gentle- man from Massachusetts. Mr. LANE. I may also say to the gen- tleman that we are very anxious to have some action on this matter at this partic- ular time in order that this bill may go to the other body so that we can take proper action for the town meeting to take place on March 18; in other werds, that is the reason for the speed at this particular time. Mr. BONNER. That is the reason the bill is called up in this manner. The SPEAKER. Is there objection to the request of the gentleman from North Carolina? There being no objection, the Clerk read the bill, as follows: Be it enacted, etc., That the General Serv- ices Administrator is authorized and direct. ed to convey by quitclaim deed to the town of Nahant, Mass., without monetary consid- eration, all of the right, title, and interest of the United States in and to all lands con. Stituting the Fort Ruckman Military Reser. vation, together with the buildings and oth- CONGRESSIONAL RECORD—HOUSE er improvements located thereon: Provided, however, That the instrument of conveyance shall contain such terms and conditions which will allow the recapture of the prop- erty in the event said property is not used for educational or other public purposes or in the event of a national emergency: And provided further, That the instrument of conveyance shall reserve to the United States, for so long as it is necessary for governe mental purposes, that certain 15-foot ease- ment for the maintenance, repair, and re- Placement of a cable and its appurtenances, and at such time as it shall be no longer ree quired for governmental use, said easement May be abandoned and upon such abandon. ment will automatically terminate, and that certain temporary easement, terminating June 30, 1954, covering one and eight-tenths acres of land used in connection with the Turf Drainage Investigation Program, with right of access thereto, both easements being more particularly described in WAA Form 1005, dated June 22, 1948, Reporting Agency No. WD-1299, as amended by WAA Form 1005, dated December 15, 1948, Reporting Agency No. WD-1299-B, which are filed in the office of the General Services Administration. The bill was ordered to be engrossed and read a third time, was read the third time, and passed, and a motion to reconsidcr was laid on the table. CALENDAR WEDNESDAY The SPEAKER. This is Calendar Wednesday. The Clerk will call the committees, CONTRIBUTIONS TO COOPERATIVE FOR AMERICAN REMITTANCES TO EUROPE Mr. KEE (when the Committee on Foreign Affairs was called). Mr. Speak- er, I call up the bill (H. R. 5953) to au- thorize contributions to Cooperative for American Remittances to Europe, Inc. The SPEAKER. This bill is on the Union Calendar. Accordingly the House resolved itself into the Committee of the Whole House on the State of the Union for the con- sideration of the bill H. R. 6953, with Mr. Price in the chair. The Clerk read the title of the bill. By unanimous consent, the first read- ing of the bill was dispensed with. The CHAIRMAN. Under the rule, the gentleman from West Virginia [Mr. Kee] is recognized for 1 hour, and the gentleman from Minnesota |Mr. Jupp] is recognized for 1 hour. Mr. KEE. Mr. Chairman, I yield my- self 3 minutes. Mr. Chairman, this bill authorizes the appropriation of certain moneys in the Treasury to CARE, an organization that has been engaged in aiding the peoples of foreign countries suffering from the ravages of the war. The money pro- posed to be appropriated by this bill is money that was earned by conscientious objectors during the war. About 12,000 young men who were conscientious ob- Jectors were not enlisted in the Army, and a great many of them worked on farms, especially on dairy farms in the West. They were paid by their em- ployers, and the money they earned was turned into the United States Treasury and kept in a special account. It has been lying there for a Jong, long time unused. This bill would authorize the expenditure of that money to supply books, scientific equipment, pamphlets, and educational equipment to the li- MarcH 1 braries of the ravaged countries of Europe. Mr. RANKIN. Mr. Chairman, will the gentleman yield? Mr. KEE. I yield to the gentleman from Mississippi. Mr. RANKIN. How much does this amount to? Mr. KEE. It will amount to some- thing like $1,200,000. Mr. RANKIN. Why did not the com- mittee use this money to buy some po- tatoes or some eggs and send them to the hungry people over there, who can- not get anything to eat? I think they are getting overeducated and underfed in Europe. Mr. KEE. The committee, of course, has no authority to use this money. We are now, by this bill, trying to put it to what we think is a good use. Mr. RICH. Mr. Chairman, will the gentleman yield? Mr. KEE. I yield to the gentleman from Pennsylvania. Mr. RICH. I was very much inter- ested in the question of the gentleman from Mississippi. It seems to me we not only could have used that money to re- plenish the Treasury, which is now so bare, but we could have given those po- tatoes to those foreign countries. The potatoes are being destroyed and wasted. It would have been a whole lot more sensible to give them to these countries. Then by putting this $1,200,000 in our Treasury, we would have wiped out that much of our national debt, and would not be going into the red so fast. Mr. KEE. Mr. Chairman, the author of the bill, our colleague from Minne- sota, Dr. Jupp, will explain the measure. Mr. JUDD. Mr, Chairman, I yield myself 5 minutes. Mr. Chairman, in 1948, in the Eight- jeth Congress, our colleague, the gentle- man from New York [Mr. Cote], intro- duced a bill which was passed unani- mously by the House to allocate these funds to which the chairman of the Committee on Foreign Affairs has re- ferred, to the United Nations Interna- tional Children’s Emergency Fund for use in furnishing better diets, vitamins, medical care, innoculations, and so forth, for children in war-devastated areas. That bill was not acted upon in the other body. In the meantime funds had come from other sources for the Inter- national Children’s Emergency Fund and besides, its work is being tapered off and may be liquidated at the end of this fiscal year. So those who earned this money, the conscientious objectors themselves, said they felt that at this stage of recovery the intellectual hungcrs and the spir- itual hungers of the people of the coun- tries involved were even more important than the physical hungers and less has been done to satisfy them. So they are asking that this moncy which they earned, but which of course they did not receive, because the wages paid by the employers for their services were turned over originally to the Selective Service Board and then placed in a special ac- count in the Treasury of the United States—the men are recommending that this money in which they have at least
1950 & moral equity be used to provide through CARE’s book program aid to war-devastated libraries. CARE, as you know, is a cooperative endeavor by 26 educational, charitable, and religious organizations in the United States. It has carried on a great program of pro- viding food and clothing packages con- tributed by private donors to needy peo- ple in Europe and Asia. It has embarked on an additional pro- gram of raising, by voluntary contribu- tions, funds to supply technical, medical, agricultural, forestry, and other scien- tific and professional books and journals to help rebuild destroyed libraries in many countries. It is already providing such aid in more than 20 countries. This bill would greatly strengthen its work. I cannot think of anything that could be done with these funds where the bene- fit would be greater, both from the stand- point of assistance to people who have not had a chance to keep up with the extraordinary developments that have taken place in medicine, biology, physics, chemistry, and the other sciences during the war and postwar years of almost total black-out; and also from the standpoint of the good will that will come to the people of the United States from a gift which has no strings attached, no idea of trying to get something in return, but is an effort to help rebuild the supplies of professional and scientific books and periodicals of these devastated libraries. Mr. SMITH of Wisconsin. Mr. Chair- man, will the gentleman yield? Mr. JUDD. I yield to my colleague on the committee. Mr. SMITH of Wisconsin. I think there is some misapprehension as to the source of this money. It is my under- standing, according to the bill, that the item in question is now in the Treasury as a miscellaneous receipt. Mr. JUDD. That is right. Mr. SMITH of Wisconsin. It does not call for an appropriation of money out of the Treasury? Mr. JUDD. It does require an ap- propriation. This bill is the authoriza- tion for it. This money was held in sep- arate accounts until the spring of 1947. At that time no plan had been worked out and the Selective Service which had received the money turned it over, as was necessary, I suppose, at the end of the fiscal year, into the miscellaneous re- ceipts of the Treasury. So this does require, and the bill authorizes an ap- propriation of the money which was originally in the special accounts. Mr. SMITH of Wisconsin. How much would that amount to? Mr. JUDD. It amounts to between $1,300,000 and $1,400,000. At first we stated about $1,250,000 in the report, be- cause we knew of only one account con- taining the money which had been paid by certain owners of dairy herds for the work these conscientious objectors had performed, especially in testing the cattle for tuberculosis and other diseases, We found out later that there were sev- eral other small accounts, one for about $62,000, one with $10,000 in it, and one with $5,000, where the conscientious ob- jectors had been assigned to do special tasks under other governmental agen- cies. These special funds were turned in later. The total amount altogether is between $1,300,000 and $1,400,000. Mr. SMITH of Wisconsin. I thank the gentleman. Mr. RICH. Mr. Chairman, will the gentleman yield? Mr. JUDD. I yield. Mr. RICH. Does the State Depart- ment administer these funds through CARE? Mr. JUDD. No. CARE has complete control of disbursing these funds. There is, however, in the bill, and I think it is proper, this provision: The Secretary of State is authorized in his discretion to make contributions, subject to the limitation of appropriations, to Coop- frative for American Remittances to Europe, ne.— That is CARE— for use in the provision of technical, scien- tific, and professional publications— And so on. For example if something should happen in or to a country, such as being taken over by Communists, under conditions which would make it inadvisable to carry on the program there, the Secretary of State ought to have the power to stop assistance to that country. So that in his discretion he could interrupt the work that CARE would be doing in that country. But once the funds are turned over to CARE, they are wholly under its control. A committee of distinguished scholars has already been sct up and is selecting the books to be sent. They have about 1,300 approved titles from which they will select the books. The Secretary of State will not administer the program. Mr. RICH. I congratulate you on bringing in a bill to deal with foreign countries and keeping it away from the State Department. I am one of those who has no confidence in him. When- ever a man gets up and defends the Communists in this country, you do not know what he is going to do in foreign countries. From what I learned from the Foreign Affairs Committee today, he is evidently not doing the thing that you and a lot of others would like to have him do in China and in some of these other foreign countries. Is that about right? Mr. JUDD. I think the gentleman, as well as the rest of the House, is fully aware of my own views on that subject. But that has nothing to do with the bill that is now before us. This is a bill that I am sure the gentleman from Pennsylvania will support because it is in line with his charitable and hu- manitarian instincts. Mr. RICH. The more we try to help those countries, through the churches and charitable institutions, instead of digging down into our own Treasury for it, the better we will be off. The more we keep it away from the State Depart- ment the better this country will be. Mr. SIMPSON of Pennsylvania. Mr, Chairman, will the gentleman yield? Mr. JUDD. I yield. Mr. SIMPSON of Pennsylvania. Does the gentleman have any information which would answer the question as to why a cooperative organization is se- lected as a means of purchasing and CONGRESSIONAL RECORD—HOUSE y 2583 distributing this material? Might it not be that private industry somewhere in this country could provide these ma- terials and facilities equally as cheap and perhaps more efficiently? : Mr. JUDD. I will say that CARE has already arranged discounts with the various book publishers. They are agreeing to sell these books to CARE without profit for themselves; simply their costs. The reason for choosing CARE is this: it already has a work- ing organization and it has made an ex- cellent record. It has its agencies in the various countries. Its supplying of food packages is gradually tapering off, because the great shortages in that field have about been satisfied. But there is an acute intellectual hunger, the need for information on the developments that have taken place in science, medi- cine, and so forth, that I fee] it is very worthy to try to relieve. Here is a statement from the chief Hbrarian of the University of the Philip- pines, which library was 90 percent de- stroyed. He greeted the announcement of the CARE book program by stating that his most critical needs are for books on agriculture, forestry, medicine, chem- istry, sociology, and engineering. Mr. JONAS. Mr, Chairman, will the gentleman yield? Mr. JUDD. I yield. Mr. JONAS. Does this act provide as to who are to be the recipients of this charity? Is it confined to any partic- ular nation, or who is in charge of the placement of the charity? Mr. JUDD. CARE, this American co- operative organization, will decide on the basis of the needs and the oppor- tunity where the aid shall go. The Sec- retary of State could interfere with sending books to a given country if he thought that was against the interests of the United States. The book pro- gram is already going on in more than twenty countries in Europe and Asia with aid going to the University of Hel- sinki, the University of Oslo, University of Vienna, Public Library of Milan, the University of Free Berlin, the University of Louvain, to mention a few. You will recall that the University of Louvain was destroyed during World War I, and was rebuilt by the Rockefellers. It was again destroyed in World War II. They need, most of all, new up-to-date books and periodicals. The CHAIRMAN. The time of the gentleman from Minnesota has again expired. Mr. JUDD. Mr. Chairman, I yield myself five additional minutes. Mr. Chairman, I cannot believe there will be serious objection to the use of this money for this purpose. There were 12,000 conscientious objectors during the war. They rendered more than 8,000,- 000 days of serv:ce to the United States, and to States and communities, for which no reimbursement was given them, As everybody knows, they did what the Selective Service Act called “work of national importance” in soil conservation, in national parks and for- ests, in mental hospitals, in hookworm and sanitation control. They served as guinea pigs in malaria, jaundice, louse, semistarvation, and other experiments,
2584 If you figure their wages at $50 a month, which is what a GI received, they con- tributed something like $20,000,000 vol- untarily to the well-being of our coun- try. They received nothing—not even their board and room in most cases. They were not willing to bear arms. They were willing to give their bodies for experiments in many disease and physiological problems. All the above service rendered is not involved in this bill. It deals only with the funds that were earned by some 1,200 of them who worked for private employers in testing dairy herds and a few other minor projects. Mr. EVINS. Mr. Chairman, will the gentleman yield for a question? Mr. JUDD. If yield. Mr. EVINS. I wish to know what in- surance we would have that the recipi- ents would know that these books came from the United States. Mr. JUDD. This bookplate will go in every book stating that it is a gift from the American people. If individuals send books they can have their own bookplates putin them. As I said, some associations are sending books over. For example, the American Dental Associa- tion is raising money for dental books and journals, and in thcir books they have a bookplate stating that it is a gift from the American people through the American Dental Association. Mr. WHITE of California. Mr. Chair- man, will the gentleman yield? Mr. JUDD. I yield. Mr. WHITE of California. I merely wished to answer the question of the gentleman from Pennsylvania as to why potatoes and eggs were not sent over in- stead of this money. Mr. RANKIN. That was my question, Mr. WHITE of California. I believe the gentleman from Mississippi also re- ferred to it. That question has been kicked around @ good deal, and I believe there is a lot of misunderstanding on the part of the American people. The reason potatoes have not been sent is that transporia- tion is too expensive and impracwcal, and the potatoes sprout on the way. In the case of eggs, transportation would, of course, require refrigerated ships. Both of these products have such a high percentage of moisture that the cost out- weighs the food value. Mr. FULTON. Mr. Chairman, will the gentleman yield? Mr. JUDD. I yield. Mr. FULTON. I believe we should state that in the Committee on Foreign Affairs it was the consensus of the vet- erans of World War TI serving on that committee that this was a good and a worth-while project. We know that this is just one example of the sort of work these othcr fellows did in the war who, because of their conscientious scruples, could not go out on the field of battle but were willing to make their contribu- tion in some other way. Mr. SUTTON. Mr. Chairman, the gentleman yield? Mr, JUDD. I yield. Mr. SUTTON. Mr. Chairman, I ob- jected to this bill in the last session of Congress when it came up on the Con- sent Calendar, because I did not believe will CONGRESSIONAL RECORD—HOUSE that we should be sending these books to foreign countries but rather should keep them here for our own libraries. I feel that I can assure the gentleman that this will not go to a roll call vote, that the bill will probably pass without difficulty, but I want the Recoarp to show that I am still opposed to it because I am not sympathetic with conscientious objectors and I still think we should keep the books for our own libraries. Mr. JUDD. I respect the gentieman’s opinion. I do not know anyone who suggests we should do this as an obliga- tion to the objectors. They do not get any of the assistance in any case. Mr. Chairman, I have no requests for time. I know of no further opposition to the bill. Mr. CHURCH. Mr. Chairman, a par- liamentary inquiry. The CHAIRMAN. Does the gentle- man from Minnesota yield for a parlia- mentary inquiry? Mr. JUDD. I yield. The CHAIRMAN. The gentleman from Illinois will state it. Mr. CHURCH. When will an amend- ment on the bill be in order? The CHAIRMAN. When the Dill is read for amendment under the five- minute rule. The time of the gentleman from Minnesota has expired. Mr. KEE. Mr. Chairman, I yield 6 minutes to the gentleman from Missis- sippi (Mr. Rana}. Mr. RANKIN. Mr. Chairman, in the first place, I doubt the wisdom of legis- Jation of this kind. If it does any good in Europe or if there is any gratitude, it will be to the conscientious objectors, and they will get the credit. But what I object to is pouring Amer- ican money into the sinkholes of foreign countries and at the same time kecping in the name of the United States Gov- ernment the billions of eggs and the mil- lions of bushels of potatoes that those peopie could use. The rank and file of the people of Eu- rope do not know that the United States has ever supplied them any money. That money has been given to the leaders, to the heads of governments, and many of those heads of government are playing the hand of Esau and the voice of Jacob. They are taking our money with the one hand but playing with the Commu- nists with the other. You know that, and every Member of this House knows it. If we are going to send anything at all to Europe, let us re- lieve the hungry people who are really suffering in Europe, in England, Scot- land, Wales, and Ireland. These state- ments that you cannot send potatoes across the ocean is ridiculous, I may say to the gentleman from California [Mr. WaHrre], because shipments go from here to England inside of a very few days, a week at the outside, and besides our freighters have refrigerator facilities to take care of them just as we have in our warehouses. We have millions of bushels of pota- toes in the hands of the Federal Govern- ment that those people could use. Let us send them food, instead of the money that we are sending over there to finance a few top-flight men to run their own MarcyH 1 governments, and who are keeping from the people the fact that we have at- tempted to ald them. Now, I do not know how many bushels of sweetpotatoes we have. You never hear anyone mention sweetpotatoes. But let me say that the sweetpotato comes nearer having all of the food value than anything else that is produced. I repeat that. It has been found that the sweetpotato comes nearer having all of the food values in it than anything else that grows out of the ground. Mr. WHITE of California. Mr. Chair- man, will the gentleman yield? Mr. RANKIN. I yield to the gentle- man from California, Mr. WHITE of California. The gen- tleman has come to the very point I wanted to make. There are other prod- ucts with food values that are superior to Irish potatoes. If we are going to feed hungry people, we ought to give them the meximum benefits. Mr. RANKIN. Why not send them whatever they need? Mr. CASE of South Dakota. Chairman, will the gentleman yield? Mr. RANKIN. I yield to the gentle- man from South Dakota. Mr. CASE of South Dakota. What would the gentleman do if one does not happen to like sweetpotatoes? Mr. RANKIN, I have never seen a Man who ate a sweetpotato who did not like it. Mr. CASE of South Dakota, I have. Mr. RANKIN. You hear that kind of talk from people who do not know a sweetpotato when they see one. I have never secn a man yet who did not hke @ sweetpotato. Let us go a step further. So far as eges are concerned the gentleman knows, if he 1s familiar with the situa- tion, that powdered eggs have been coming in from China for years and years and years. We are importing eggs. These eggs could be supphed. Do you know how many eggs & man in Eng- land gets? An individual gets one and a half eggs a week. Of course he would like sweetpotatoes. Take the gentieman from South Dakota and put him on that kind of a diet and he would eat sweetpo- tatoes and he would lke them. These eggs we have, we can supply to the peo- ple in the British Isles, or in those coun- tries where the peopie are actually suf- fering, instead of giving aid to a fcw po- litical manipulators to buy automobiles and tractors over there in countries where they have only about 15 acres to the farm. It is about time the American Con- gress gets down to a basis of common sense in our international dealings. We have not made a friend, we have in- spired contempt; we have spent untold buluons of doilars out of the pockets of the taxpayers of America, not only now, but for generations yet to come, You saw in the paper yesterday a statement that the foreign debt will not be paid before the year 2000 when your grand- chiidren will be as old as many of you are now. Are you going to continue this kind of & policy that does not provoke gratitude, that the people do not know anything My.
1950 about, but on the other hand provokes ingratitude, and continue the financing of a few people who are leading their governments down the road toward communism and socialism? If we are going to send them any- thing, Ict us send them something to eat and let them know where it comes from. The CHAIRMAN. The time of the gentleman from Mississippi has expired. Mr. KEE. Mr. Chairman, I yield 9 minutes to the gentleman from Mis- souri [Mr. CaRNAHAN]. Mr. CARNAHAN. Mr. Chai-tnan, H. R. 5953, the bill now under consideration by the House, was introduced by the gen- tleman from Minnesota [Mr. Jupp] on August 10, 1949, and it was referred to the Committee on Forcign Affairs. The chairman of this committee referred the bill to a subcommittee, composed of the gentleman from Texas [Mr. Bur LEson], the gentleman from Minnesota [Mr. Jupp], and myself. The subcommittee held a hearing on August 23. We heard several witnesses, and upon the conclu- sion of the hearing, the subcommittee voted unanimously to recommend H. R. 5$53 to the full committee. On August 24, the full committee endorsed the rec- ommendation of the subcommittee and recommended the bill to the House by a unanimous vote. It is the opinion of the comm 'ttee that this bill offers an appropriate pattern for handling the mone, involved. The sums involved represent the wages paid by pri- vate employers to the Selective Service System for work done by men assigned by the Selective Service System to types of work which was of national in.portance and in accordance with the Selective Training anc Service Act of 1940. Under the Selective Training and Serv- ice Act of 1940, approximately 12,000 young men were assigned to work of a national importance. These men were, in most cases, taken care of 1n service camps which were operated at the ex- pense of religious groups with which the individuals involved were identified. All of the 12,000 assignees served their coun- try without pay. They contributed a total of 8,237,866 man-days of labor in soil conservation, national parks and forests, mental hospitals, hookworm and sanitation control, and as guinea pigs in malaria, jaundice, semistarvation, and other experiments. Their services, if computed on the basis of an Army pri- vate’s base pay of $50 a month, amounts to a contribution of $13,729,775 to the United States Government, In addition to this service, the religious agencies paid nearly the entire cost of maintaining and operating the camps which took care of these men from 1941 to 1947; the total cost of which amounted to about $8,000,- 000. The two items together, thus, con- tributed to the Government over $21,- 000,000. These men, who worked for govern- mental units on the national or local level, received no pay whatsoever. A group of about 1,200, however, served as dairy farmers and herd testers. Their wages were paid by the dairy farmers and the dairy herd associations employ- ing them. These wages were collected by the National Service Board for Religious Objectors and were turned over to the CONGRESSIONAL RECORD—HOUSE United States Government. These moneys were kept in a separate deposit account in the Treasury. On March 12, 1947, and May 19, 1947, the Selective Service Board made payments to the Treasury. Other agencies, including the Department of Agriculture, also paid additional sums into the Treasury in this fund during 1947, 1948, and 1949. The total amount of all sums paid into the Treasury is $1,327,641.76. This is the amount of money involved in this legis- lation. The legislation here proposed would dispose of this money in keeping with the wishes of those who earned it—that it be devoted to a public and unselfish purpose. H. R. 5953 directs that these funds, under the direction of the Secre- tary of State, be uscd to make contribu- tions to Cooperative for American Re- mittances to Europe, Inc., for use in the provisions of technical, scientific, and professional publications and educa- tional and scientific equipment for li- braries and institutions of learning abroad. The moneys involved are, in a legal sensc, part of the money resources of this Government. On the other hand, the money came into the Government’s possession as a result of the efforts of private individuals, who legally were pro- hibited from receiving the funds. These moneys have both a public and a private character. This bill recognizes the dual character of the money and provides that the money will be spent by a private agency for a purpose in keeping with the wishes of the individuals, who have a moral equity in it. On the other hand, the money will be released to a private agency under the direction of the Secre- tary of State, whose responsibility it will be to see that the money is used in a manner compatible with the public interest. It should be emphasized that the pro- graming of the money will be the re- sponsibility of a private agency, namely, Cooperative for American Remittances to Europe, Inc.—CARE. Distribution of the books and educational] equipment in- volved will also be in CARE’s hands. On the other hand, CARE’s programs will be subject to review by the Department of State. This will insure that the plan of governmental supervision will be maintained to the extent of insuring that the money not be used in a manner con- trary to the national policy of the United States. CARE is a private, voluntary, non- profit agency, which enjoys a high public standing, and it operates with a full sense of public responsibility. It was organized following the close of hostili- ties in Europe in World War II. Its pur- pose was, and still is, to bring about co- ordination of the highest possible degree of efficiency in the overseas relief activi- ties of various private agencies. The organization was formed, as an answer to a need, seen by the President’s War Relief Control Board. Its functioning model was a similar organization, organ- ized by Herbert Hoover in the relief work in Europe following World War I. CARE is registered with the Advisory Commit- tee on Voluntary Foreign Aid of the Department of State, Its activities are 2585 carefully coordinated with the Depart- ment of State and through it with the Economic Cooperation Administration. At the same time, CARE preserves the elements of private judgment and in- dividual impulse which are necessary ingredients to a rounded overseas relief program. The CARE book program has been de- veloped to meet the depleted library resources of various parts of the world. The program seeks to assist institutional libraries only. It does not assist individ- uals. Insofar as educational materials other than books may be purchased with funds involved in this bull, they too, will he for in.titutional use only. Mr.CRAWFORD. Mr. Chairman, will the gentleman yield? Mr. CARNAHAN. I yield to the gen- tleman from Michigan. Mr.CRAWFORD. The bill states that “the Secretary of State is hereby au- thorized in his discretion to make con- tributions.”” Does this bill specifically direct the Secretary to make the funds available to Cooperative for American Remittances to Europe? Mr. CARNAHAN, Yes; at his discre- tion. Mr. CRAWFORD. Suppose he chooses not to make them available to the Coop- erative for American Remittances to Europe? Mr. CARNAHAN. Then according to the bill they would not be made avail- able. Mr. CRAWFORD. In other words, he can hold them up? Mr. CARNAHAN. He can hold them up. Mr. CRAWFORD. The men_ who earned this money in the first instance requested that the funds be used for a certain purpose; is that correct? Mr. CARNAHAN. They have sug- gested that a certain use would be satis- factory to them, I think would be the correct answer. Mr. CRAWFORD. Does the bill man- date the Secretary of State to use it for that purpose, or does it give the Secre- tary of State the privilege of using the funds for some purpose other than what the men who earned the money re- quested? Mr. CARNAHAN. May I ask the gen- tleman from Minnesota [Mr. Jupp] if he can answer that question? Mr. JUDD. The Secretary of State can do only two things: He can give the money to CARE or he can withhold it. He cannot use it for any other purpose under the terms of the legislation, and he could not give it to any other organi- zation. Mr, CRAWFORD. Does that meet the request of the men who earned the money? Mr. JUDD. It does, Their represent- atives came before our committee and testified they had taken a poll of their own members and they overwhelmingly favored the use for this purpose of the money which they had earned. Mr.MANSFIELD. Mr. Chairman, will the gentleman yield? Mr. CARNAHAN. I yield to the gen- tleman from Montana. Mr. MANSFIELD. Incidentally, this money could not be put in better hands