1950 not adjusted by consultation, the matter shall be referred to the President for final decision. The next section deals with the ter- mination of assistance. Mr. President, the watchdog commit- tee, on page 16 of its report, stated very emphatically as follows: The problem confronting Congress is the fact that after nearly 2 years the whole- hearted cooperation of the European coun- trics receiving American aid in controlling east-west trade has not been obtained. It presumably could be obtained if section 117 (d) were strengthened by directing the Ad- ministrator to withhold economic assistance from all countries which do not satisfy him that they have put into effcct controls which prevent shipments of goods to the iron- curtain areas, which the United States itself does not permit. In this connection it must recognized that this problem might fall more directly into the sphere of the North Atlantic Treaty and its administration. Nevertheless, cer- tain countries receive economic assistance which do not participate in the foreign milli- tary-assistanco program. The fundamental question then remains as to whether Ameri- can dollars should go to countries which do not carry out our policies concerning trade with the Soviet-dominated countries. Mr. MALONE, Mr. President, will the Senator yield? The VICE PRESIDENT. The argu- ment should go to the point of order, not to the merits. Mr. WHERRY. I am arguing the point of order, Mr. President. In carry- ing out the recommendations made by the watchdog committee there is a limi- tation as to what the money can be spent for if the policy is not carried out. Therefore, it is not legislation in an appropriation bill. The VICE PRESIDENT. The Chair would like to ask the Senator a question. The watchdog committee report sug- gests an amendment to the basic act, which has not been ratified by Congress. Mr. WHERRY.. I understand. How- ever, I say that that is the basis for this amendment, which is not an affirmative amendment but a limitation upon an ap- propriation bill, requiring that no assist- ance be given to countries which do not carry out in principle what is inherent in the basic act. The VICE PRESIDENT. The Chair is trying to ask a question on the point of order. Does the Senator concede or does he take the position or is it his opinion that the adoption of the amend- ment would impose additional duties on the Administrator of the ECA or anyone connected with it? Mr. WHERRY. No. The VICE PRESIDENT. The Chair would like tc hear the Senator on that point. Mr. WHERRY. That is required un- der the basic act. The VICE PRESIDENT. Will the Sena.or point to the language in the busie act which requires such action? Mr. WHERRY. Section 117 (d). The VICE PRESIDENT. Will the Sen- ator ,ead it again? Mr. WHERRY,. Section 117 (d) pro- vides: . The Administrator ts directed to refuse Gelivery, insofar as practicable, to partici- CONGRESSIONAL RECORD—SENATE pating countries of commodities which go into the production of a commodity for de- livery to any nonparticipating European country which commodity would be refused export licenses to those countries by the United States in the interest of national security. The section continues in provision after provision with respect to what the Administrator shall do. It is my opin- ion that the Administrator has not done it, even though it is provided for in the basic act. The VICE PRESIDENT. Would not those articles be subject to refusal of export licenses? Mr. WHERRY. The difficulty is not primarily with export licenses issued here. The difficulty is that the Admin- istrator 1s not rejuiring the same pre- caution in export licenses from ECA countries to Russia. Therefore I am asking that the provision of the basic act be carried out insofar as licenses to those countries are concerned, The VICE PRESIDENT. The Chair is undertaking to determine undcr the basic act which shipments from cooper- ating countries to noncooperative coun- tries are in such category that export licenses would not be granted for the shipment of those specific article into a roncooperating country. Mr. WHERRY. The basic provision is that licenses shall be refused by the Administrator for the same articles for which we refuse export licenses in Amer- ica in direct shipments to Russia or satellite countries. The VICE PRESIDENT. That is the point regarding which the Chair is mak- ing inquiry. What identical articles are involved in this amendment on which our country would not issue export licenses? Mr. WHERRY. They are all strategic articles, on which a board passes, The Secretary of Commerce sits on that board. The Defense Department is also represented. In the past 6 weeks the board has begun to tighten up on many of these strategic matcrials, such as oil, which are “ading their way into satellite courtries. Mr. HAYDEN. Mr. President, I should like to point out that in reading the re- port of the watchdog committee the Senator from Netraska has indicated that the committee recommended that the basic law be changed or modified, and that is what his amendment seeks to do. In other words, he is seeking to legislate. Mr. WHERRY. Oh, no. Mr. LUCAS. Mr. President, I ask for the regular order. The VICE PRESIDENT. The Chair is listening to the Senator from Arizona. Mr. HAYDEN. The “watchdog com- mittee” clearly indicates that the law as it now stands is not satisfactory to the committee, and that it should be changed. That is what the Senator from Nebraska is trying todo. The law which he quoted states that the Administrator shall, so far as practicable, do certain things. The Senator would specifically require the Administrator to do those things whether he believed them to be practicabla or not, 11358 Mr. WHERRY. I respectfully dis- agree with my colleague from Arizona. I again call attention to the fact that I read the basic act, section 117 (d), which sets forth what we are attempting to do here—— Mr. HAYDEN. The Senator has read from the report of the ‘watchdog com- mittee.”’ Mr. WHERRY. Will the Senator let me finish? In support of the fact that I felt there was need for this amend- ment I quoted from the “watchdog com- mittee” report. The Senator from Ne- braska knows that a legislative act can be amended. The Senator from Ne- braska is not attempting to write legis- lation into an appropriation bill, any more than the Senator from Iowa [Mr. HICKENLOOPER] was attempting to leg- islate in an appropriation bill. I pro- pose a restriction or a limitation in an appropriation which has been written into the law already, The Senator from Nebraska is on sound ground so far as the amendment is concerned. If the Senator from Ari- zona does not agree with it, that is an- other thing. Certainly the point of or- der does not lie against my amendment if we proceed on the established prece- dents. It is restriction on a legislative act, which does not call for affirmative action beyond what is already provided in the act itself. That is the reason I read the act. The VICE PRESIDENT. A limitation on an appropriation, if it changes an existing law or imposes additional duties on an administrative officer, would not necessarily be in order. The question before the Chair is not an easy one to decide. The question before the Chair is whether this restriction im- poses any additional duties upon the Administrator of the ECA or any other officer with respect to the satellite coun- tries, the Soviet Union, Communist China, or North Korea. The Chair would like to take a Httle time to consult the Parliamentarian with respect to that question, because the Chair is undecided about it. Mr. LUCAS. May I say a word on the point of order? The VICE PRESIDENT. The Chair will hear the Senator from Illinois, Mr. LUCAS. The basic act, as read by the Senator from Nebraska, definitely states that the Administrator shall do certain things insofar as practicable. I emphasize the words “insofar as prac- ticable.” Under the Senator’s amend- ment the Administrator is directed to do certain things. When that direction or authorization is added to the duties of the Administrator we are giving addi- tional duties to him which he did not have under the basic act. In other words, he can take certain action now, so far as practicable, in connection with the dis- position of certain articles from one country to another. The decision is up to him. Under the Senator’s amend- ment the Administrator would be com- pelled to do certain things whether he wanted to do them or not. Certainly that would involve the imposition of ad- ditional duties,
11354 Mr. WHERRY. May I say another word before the Chair makes his de- cision? The VICE PRESIDENT. The Chair will listen to the Senator from Nebraska, Mr. WHERRY. I maintain that the amendment offered by the junior Senator from Nebraska narrows the act. The present provisions of section 117 (d) are very much broader than what the junior Senator from Nebraska is attempting to do with his amendment. All that the amendment of the Senator from Ne- braska would do would be to withhold funds from countries which have not conformed to the provisions of the basic act with regard to strategic materials only. The basic act is much broader. It applies to all commodities which go into the production of any commodity for delivery, and so forth. All I am ask- ing for is enforcement of the act with respect to strategic materials, because if we cannot get compliance on the broader scale, certainly we want it on strategic materials, because the time is here when all of us ought to be unani- mous in directing the Administrator to refuse to permit strategic materials such as oil to be sent to ECA countries and then to be sold by them to satellite coun- tries or to Russia, to be used against our boys. The Senator from Nebraska is narrowing the obligations of the Admin- istrator to apply only to strategic ma- terials. If the Administrator had com- plied with the provisions of the act there would be no need for the amendment of the junior Senator from Nebraska. Mr. CONNALLY. Mr. President, I wish to say just a word on the question of the limitation. It is fundamental that a limitation is purely negative. It cannot direct, it cannot enlarge, it can- not change the responsibilities or the duties of the administrator under the original provision. So that if the pend- ing amendment in any wise adds to the duties or the obligations of the Admin- istrator, it is out of order That is all I care to say, The VICE PRESIDENT. The basic act provides that the ECA Administrator shall act “so far as practicable.” That gives him discretion to determine whether it is practicable to supply to the countries concerned goods which may be exported by them to nonpartici- pating countries and used for the man- ufacture of arms or supplies which might be useful to them in any conflict with us. That is the effect of it. The amendment probably requires the ECA Administrator to be a little more alert in carrying out that duty. The Chair thinks that the basic Act would prevent him from providing any assist- ance to a country which shipped or per- mitted the shipment of any goods to Russia or a satellite country which might be used by them in any military operation against us. That gives the Administrator considerable discretion and latitude, whereas the amendment probably restricts his discretion, and makes it more mandatory for him to do these things, The Chair does not see any “fatal in- firmity,” as Chief Justice Hughes once described a law on which he was passing, CONGRESSIONAL RECORD—SENATE between the amendment and the basic law, and the Chair therefore overrules the point of order, The question is on agreeing to the amendment offered by the Senator from Nebraska [Mr. WHERRY], Five minutes may be used by any Senator who desires to speak against the amendment. Mr. WHERRY. Mr. President, I ask for the yeas and nays. The yeas and nays were ordered, and the legislative clerk called the roll. Mr. LUCAS. I announce that the Senator from California [Mr. DowNEY] is necessarily absent. The Senator from Mississippi (Mr. EASTLAND] and the Senator from Georgia (Mr. Russe.i] are detained on official business. The Senator from North Carolina [Mr. Hoey], the Senators from West Virginia (Mr. Ki,gore and Mr. NEe.y], the Sen- ator from Connecticut [Mr. McManon], and the Senator from Pennsylvania {Mr. MYERS] are absent on public busi- ness. The Senator from Wyoming [Mr. Hunt] is absent because of illness. The Senator from Louisiana [Mr. Lonc], the Senator from Idaho [Mr, TaYtor}], the Senator from Utah [Mr. Tuomas}, and the Senator from Ken- tucky [Mr. WITHERS] are absent by leave of the Senate. I announce further that if present and voting, the Senator from Georgia [Mr. RvSSELL] would vote “yea,” Mr. SALTONSTALL. I announce that the Senator from Vermont [Mr. AIKEN], the Senator from Washington (Mr. Cain], the junior Senator from Kansas (Mr. Darsyi, the Senator from Missouri {[Mr. DoNNELL!, the Senator from Indiana | Mr. JENNER], the Senator from Colorado [Mr. MILLIKIN], the senior Senator from Kansas [Mr. ScHorprret], the Senator from New Hampshire (Mr. Tosry], the Senator from Michigan (Mr. VANDENSERG], and the Senator from Wisconsin [Mr. WILEY! are absent by leave of the Sen- ate. If present and voting, the Senator from New Hampshire [Mr. TopeY] and the Senator from Kansas [Mr. SCHOEP- PEL] would each vote “yea.” The Senator for Wisconsin [Mr. Mc- CarTHY] is necessarily absent. The result was announced—yeas 33, nays 39, as follows: YEAS—33 Brewster George Malone Bricker Gillette Martin Bridges Hendrickson Morse Butler Hickenlooper Mundt Byrd Ives O'Conor Capehart Johnson, Colo. Pepper Cordon Kem Taft Dworshak Knowland Watkins Ecton Langer Wherry Ferguson McCarran Williams Pulbright McClellan Young NAYS—39 Anderson Hill Magnuson Benton Holland Maybank Chapman Humphrey Murray Chavez Johnson, Tex. O'Mahoney Connally Johnston, 8, C. Robertson Douglas Kefauver Saltonstall Ellender Kerr Smith, Maine Flanders Leahy Smith, N. J, FPrear Lehman Sparkman Graham Lodge Stennis Green Lucas Thomas. Gurney McFarland Thye Haydea McKellar Tydings JULY 31 NOT VOTING—24 Aiken Jenner Russel] Cain Kilgore Schoeppel Darby Long Taylor Donnell MoCarthy Thomas, Utah Downey McMahon Tobey Eastland Millikin Vandenberg Hoey Myers Wiley Hunt Neely Withers So Mr. WHeERrRY’s amendment to the committee amendment was rejected. Mr. BRIDGES, Mr, President, I call up my amendment lettered “B” of July 28, 1950, to the committee amend- ment, and ask to have it stated. The VICE PRESIDENT. The amend- ment to the amendment will be stated. The Cuigr CierK. On page 448, line 24, it is proposed to strike out the period at the end of the sentence and insert in lieu thereof the following: “Provided further, That in carrying out the pur- poses of the Economic Cooperation Act of 1948, as amended, the President shall encourage the cooperating nations to forgive indebtedness incurred with one another during World War II, or to delay payments on such indebdteriness for so long a period as United States assistance shall be required for the debtor nation.” Mr. BRIDGES. Mr, President, I will take 3% minutes of my 5 minutes my- self, During World War II the United States Government extended $48,700,000,000 in grants and credits to its allies, the major portion of which was in lend-lease. In the same period other nations ex- tended minor credits to allied nations to carry out the successful prosecution of the war. The United States looks for repayment of only minor sums out of the vast amount of World War II aid extended. Where it seeks repayment at all, it has been most willing to grant indefinite delay so as to occasion no hardship to former allies. As we now undertake economic aid and the rearming of several nations in the mutual-defense assistance program, this Nation finds that some of the re- ceiving nations are saddled with rela- tively heavy debts incurred during World War II for military supplies. Great Britain, for instance, extended aid to the Netherlands, France, Greece, and Turkey during World War II. Now it seeks repayment of these wartime loans. Other nations, likewise, extended World War II credits. It would seem only just that repay- ment of World War II indebtedness should be postponed during such time as the United States is called upon to equip debtor nations with military cup- phes or furnish economic aid. The nations that have been aided so generously by the United States Govern- ment ought now to be lenient to nations that contracted military debts in the last war. Repayment of World War II military debts at this time may retard the recov- . ery of a debtor nation or delay military preparedness needed now. Turkey, for instance, owes Great Brit- ain approximately £30,000,000. This amount is not large in the British econ- omy. It represents a major obligation in terms of the Turkish economy. The gold reserves of Turkey have been drawn
1950 down from approximately $208,000,000 in 1947 to approximately $165,000,000 today. We are called on to aid Turkey, both through ECA and through military as- sistance. At the same time we are aiding Great Britain. It seems to me that in carrying out the provisions of economic assistance or of the Mutual Defense Assistance Act of 1949 we ought to encourage the forgive- ness or postponement of World War II debts contracted between participating nations because, in the end, the money comes from the United States, anyway. This amendment does not direct the President to take any action that would interfere in any way with the sover- eignty of other nations, It does not re- quire him to impose any intolerable bur- den upon any other nation. It only ex- presses the sense of Congress that he should encourage nations receiving our aid to lessen the load which debtor na- tions carry today because of credits ex- tended during the wartime period. In effect the amendment merely asks the President to use his good offices to see if this can be brought about. I think it is a sound thing because, if we are aiding Turkey, and she owes money to Great Britain, and if Great Britain is pressing Turkey for collection, then cer- tainly the money will come out of the United States both ways. Therefore, I think the amendment is very sound. I yield 1 minute to the Senator from South Dakota [Mr. MunprT]. Mr. MUNDT. Mr. President, I want to associate myself with the views ex- pressed by the Senator from New Hamp- shire, pointing out that this is not a mandate on the part of the Senate, but this is an effort on our part by amend- ment which asks the President to en- courage our associates in ECA to give the same kind of treatment to other countries in the Marshall-plan program with regard to World War II indebted- ness that we in the United States our- selves are extending to our associates in the Marshall-plan program. It seems to me that is simply injecting an element of realism into this whole business. The amendment simply assures that each of the members of the Marshall-plan pro- gram shall receive the same considera- tion from other creditor countries as the United States, in turn, has extended to such creditor nations as are debtor na- tions, insofar as our own books are concerned. The VICE PRESIDENT. The time of the Senator from South Dakota has expired. Mr. MUNDT. Mr. President, I ask unanimous consent to extend my re- marks in the Recorp to the point of con- cluding my sentence. The VICE PRESIDENT, Without ob- jection, it is so ordered. Mr. BRIDGES. Mr. President, I yield the next half minute to the Senator from New Jersey (Mr. HENDRICKSON]. Mr. HENDRICKSON. Mr. President, as I view the amendment I see in it only a@ direction for cooperation. It is quite in the spirit of all the things we are try- ing to do with our allies and our friends CONGRESSIONAL RECORD—SENATE the world over. I think the amendment is entitled to the support of every Mem- ber of this body. Mr. McKELLAR. Mr. President, I hardly know what the amendment means. I do not, of course, intend to cast any refiection on my friend from New Hampshire. It seems to require the President to do something which is cer- tainly not in order on this appropriation bill, as I believe, and I make a point of order against it. The idea of our asking other nations to forgive each other their debts is remarkable indeed. Such a provision certainly ought not to be on an appropriation bill which authorizes so much money to be given to other na- tions, By this bill we are appropniating money for certain foreign nations. The Senator’s amendment would ask other nations to forgive debts owing to them. How can we ever expect to col- lect any of the money we have loaned other nations or given to other nations after we make a statement such as is proposed by the amendment? It seems to me the amendment is subject to a point of order. If it is not subject toa point of order, it ought to be voted down, and I hope it will be voted down, and not put in the bill. Mr. BRIDGES. Mr. President, will the Senator yield for a question? Mr. McKELLAR. Yes. Mr. BRIDGES. The Senator under- stands, does he not, that we are ad- vancing money to Turkey for economic ald and military aid, for example. If Turkey is being forced by Great Britain to pay old war debts, similar to war debts owing to us and such as we have in large part forgiven, it will only mean that we will be furmishing money to Great Brit- ain, ond then she will get more money by siphoning off some we provide for Turkey. The amendment does not di- rect the President to do anything. It simply asks him to use his good offices to stop demands for payments owing to them. Mr. McKELLAR. If the Senator fecls as he does with respect to forgiveness of debt, why does he not introduce a bill covering that point? Why does he pro- pose to hang such an amendment onto this apprcepriation bill? It seems to me the amendment is out of place in every sense of the word. I believe it is not in order on an appropriation bill, and 1 hope the Chair will hold that it is not in order. If the Chair does not hold that it is not in order, I hope the Senate will vote down the amendment. The VICE PRESIDENT. The Chair is ready to rule on the point of order. The amendment does not limit the appro- priation carried in the bill. But it does issue a direction to the President of the United States to encourage the cooperat- ing nations to forgive indebtedness in- curred with one another during World War II, or to delay the payments of such indebtedness so long as we are furnish- ing money to any of these countries. Presumably the President could by nego- tiation, by taking up an issue of that sort with the other nations, encourage them to do that thing. But he is not required to do it. It is entirely within his own judgment as to whether or not he shall undertake it. 11355 This amendment says he shall do it; therefore, he is directed by the amend- ment to proceed with negotiations with all these countries, to see whether they will forgive the indebtedness to them by other countries or postpone its payment. The Chair thinks that amounts to is- suing to the President of the United States a directive that is not contem- plated by any present law. Therefore the point of order is sustained. Mr. BRIDGES. Mr. President, in or- der to be consistent, I appeal from the Chair’s decision on the point of order, The VICE PRESIDENT, The ques- tion is, Shall the decision of the Chair stand as the judgment of the Senate? |Putting the question.) The ‘ayes’ appear to have it; the “ayes” have it, and the Chair’s ruling on the point of order is sustained. The committee amendment is open to further amendment. Mr. McCLELLAN. Mr. President, I call up the amendment to the committee amendment which I have sent to the esk. The VICE PRESIDENT. The amend- ment to the committee amendment will be stated. The LecIsLaTive CLerK. On page 448 of the committee amendment, before the period in line 24, it is proposed to insert a comma and the following proviso: “Provided further, That no part of the funds herein appropriated shall be used to provide assistance to any participat- ing country which, in the opinion of the President, has failed, refused, or neglect- ed to support the United Nations in the Korean war by supplying armed person- nel, materials of war, or services.” Mr. McCLELLAN. Mr. President, this amendment to the committee amend- ment is very plain in its purpose and in its direction. Today we are in a war. It may be called a police action; but to the men who are fighting and dying over there in Korea, trying to stop that Communist aggression and conquest, 1t is war. Officially it is a war of the United Nations, but with the United States doing the fighting. That is the situation up to this hour. Other members of the United Nations have been called upon to furnish as- sistance in fighting personnel, materials, and services. Some of them have most modestly responded; others have done nothing as yet to assist. There has not been up to now the enthusiastic re- sponse and support which is necessary and that we have the right to expect and ' demand. I do not believe we should be expected to spend millions of dollars, nor should we tolerate it, to build up the economy of any country participating in the ECA program if that country js able and should fail or refuse, as a member of the United Nations, to furnish either fighting personnel, war materials, or services in this confiict. This amendment to the committee amendment simply provides that if any country participating in and a recipient of ECA founds fails, refuses, or neglects to furnish either fighting personnel, war materials, or services, then, when such country fails to do so, if in the Presi- dent’s opinion that country could do se,
11356 the President in his discretion can stop the spending of ECA funds in that coun- try and for that government. Mr, President, that should be done. That is all the amendment to the com- mittee amendment provides. It is not compulsory; it leaves the matter to the discretion of the President of the United States. Someone has said, “We ought not say that now out loud; that we should tell them that in a whisper when we give them the money.” Well, Mr. President, let us tell it to them now in the language of this bill. Let us whisper {t loud enough so that when the President says, “Give us some help,” these countries will know that the Congress of the United States is back of the President, giving him our moral support, and that the Congress and the people of this Nation do not want this ECA money—which is appropriated by us to help in the fight against commu- nism—to be spent in countries which will not, when the crisis, the real test comes, stand up and be counted in the fight against communism. That is all there is to the amendment. Mr. STENNIS. Mr. President, will the Senator yield? Mr. McCLELLAN. I yield 1 minute to the junior Senator from Mississippi. Mr. STENNIS. Mr. President, I wish enthusiastically to support and endorse in full the amendment offered by the Senator from Arkansas to the committee amendment. The battle call has already been sounded; it was sounded more than a month ago. Our men are actually fight- ing and dying on the battle line. The blue-and-white flag of the United Na- tions has been unfurled, representing a new forward step in international affairs. However, we are the only country whose men are actually fighting and giving their blood and dying on the battle line. The operation of the amendment will not be arbitrary, for it leaves discretion with the President. There is plenty of time to put the amendment into opera- tion, and there is plenty of time for these nations to have advance notice. It seems to me that this is the test; this is it. All these years we have been charged with having been the cause of the failure of the League of Nations. Now we have taken a leading part in the United Na- tions, and today we are on the battle line. So it seems to me that this is the test; and no one who is acting in good faith in connection with the recovery program can object to this step. Mr. FERGUSON. Mtr. President, will the Senator yield? Mr. McCLELLAN. I yield 1 minute to the Senator from Michigan. Mr. FERGUSON. Mr. President, I wish to endorse wholeheartedly the amendment of the Senator from Arkan- sas to the committee amendment. Today we have a new kind of citizen- ship—citizenship in the United Nations. Every member of the United Nations is in effect a citizen of the United Nations, and in time of war they can be classi- fied only one way or the other: they are either for the new nation of which they are a citizen or they are against tt. In CONGRESSIONAL RECORD—SENATE a case of this sort, when a country gives aid and comfort to the enemy, that coun- try is guilty of treason, to all effects and purposes. I think the time has come when the people of the United States, through their Senate and their House of Repre- sentatives, should speak and be heard as advising the President that we ex- pec. that the citizens of the United Na- tions, the members of the United Na- tions, will take either one side or the other in the great conflict now going on in Korea, the aggression of the North Koreans against the South Koreans. In this conflict, all nations who are mem- bers of the United Nations must demon- strate iuat they are either for or against the United Nations. Those who give aid and comfort against the United Na- tion: are in effect themselves guilty of acts of aggression, They should not be given aid by the United States of Ameri- ca when we are trying to fight commu- nism not only in Korea but in other parts of the world. Mr. KNOWLAND. Mr. President, will the Senator yield? Mr. FERGUSON. I am glad to yield. The VICE PRESIDENT. The Sena- tor’s time has expired. Mr. McCLELLAN. Mr, President, be- fore the vote is taken on the amendment, I ask that it be again stated by the elerk, so that all Senators will under- stand it. Mr. McKELLAR. Mr. President, the Senator from Arkansas wants the amendment again stated by the clerk, and I yield that much time—if it does not take all the remaining time. The VICE PRESIDENT. The clerk will restate the amendment. The LecistaTive CLERK. On page 448, before the period in line 24, it is proposed t. insert a comma and the following: “Provided further, That no part of the fuads herein appropriated shall be used to provide assistance to any participat- ing country which, in the opinion of the President, has failed, refused, or neg- lected to support the United Nations in the Korean War by supplying armed personnel, materials of war, or services.’ Mr. McKELLAR. Mr. President, I wonder whether the Senator from Ar- kansas would be willing to let the amend- ment go to conference, to be considered there. I think it is subject to a point of order, but if the Senator is willing to Jet it go to conference, we will accept it. Mr. M . I thank the able Senator. Of course, it will have to go to conference, and I am perfectly willing that it go to conference. But I hope it w'’ be retained in this bill. Mr. LUCAS. Mr. President, I agree with the Senator from Tennessee that the amendment is subject to a point of order. However, the Senator from Mli- nois will not raise the point. I do not raise it because I am confident that the Senator from Arkansas, in this amend- ment, is facing in the right direction so far as the United Nations organization is concerned, and insofar as all men who believe in the free way of life are con- cerned, I should like to advise the Senate that, at the first meeting we had with the President of the United States, the Cab- JULY 31 inet, and high members of the military, the Army and the Navy, the Senator from Maryland (Mr. Typtnes], and I, at that very first meeting, advocated this very thing. We thought it was very necessary that all nations partiicpating in the United Nations organization show their good will and their intention of going along with us by doing some- thing along this line. Since that time, the nations have indicated their will- ingness to help, and I think it is a source of something really worth while for the United Nations and the free world to have all these nations doing something which they can do for the free world, something which indicates that they are with us in this fight. That is what the Senator from Arkansas is aiming to ac- complish, by giving the President the power to do the things enumerated. Mr. McCLELLAN. Mr. President, will the Senator yield? Mr. LUCAS. I yield. Mr. McCLELLAN. I merely want the other countries to know that we are fur- nishing this money, and that the eyes of America are upon them. We want to know whether they are ready to stand up and be counted to the extent of their ability, whenever a crisis comes. If not, I do not favor spending time or money with them. Mr. STENNIS. Mr. President, will the Senator yield for a question? The VICE PRESIDENT. Does the Senator from Illinois yield to the Sen- ator from Mississippi? Mr. LUCAS. Ina moment. I should like to make a further observation with respect to certain countries sending mili- tary and other forms of aid. We must realize, wheil we think of the 59 nations of different languages and different types of munitions, and so forth, so far as military aid from them is concerned, it could become a liability rather than an asset. At the same time, they can furnish materials or articles that vill be of aid in connection with this crisis, They could send troops, even though they could not speak our language, to be used for example in bringing out those who are wounded, or for certain kinds of field duty, or to do something in the rear of the front lines, so far as menial services are concerned. I think that is * what the American people desire. Mr. McCLELLAN. That is what we want, Mr. LUCAS. This is a step in the right direction, and I certainly shall not object to it. Mr. STENNIS. Mr. President, will the Senator yield? Mr. LUCAS. I yield. Mr. STENNIS. The Senator from Tilinois says there have been pramises and expectations held out. Will the Senator be more specific? We have promises, but the only things that are definite I think are that Turkey is send- ing, or offering to send, 4,500 trained combat troops; Thailand, 4,000 solciers; and Bolivia, 30 officers, Mr. LUCAS. I do not know what 30 officers from Bolivia could do in Korea. Mr. STENNIS. I am not referring particularly to them. But let us be as specifiie as we can as to what has ac- tually been put on the lne, or sent, or
1950 representations made that it will be sent at any particular time. Mr. LUCAS. It is my understanding that England is now preparing to send 6,000 infantrymen, engineers, and ar- tillery. They will all be foot soldiers. It is my understanding Australia is sending foot soldiers, and that another nation is probably sending some. Mr. THYE. Mr. President, will the Senator yield? Mr. LUCAS. I shall yield in a mo- ment. I am now quoting from memory, but I know that there are countries which have expressed a willingness to do what is being suggested here. The more we can discuss it and the more the Congress becomes interested in such a program, the better it will be for our own country, and the better for all the peoples concerned, Mr. STENNIS. Does not the Sena- tor think that the subject ought to be debated more at length, and that it is unfortunate when it comes up under the 10-minute rule? Mr. LUCAS. I might debate it at great length, and go along with every- thing said in furtherance of it. I now yield to the Senator from Minnesota ASSISTANCE FROM AUSTRALIA—EDI- TORIAL FROM THE SYDNEY DAILY TELEGRAPH Mr. THYE. Mr. President, I received by air mail from Australia an editorial which appeared in one of the leading Australian papers. I think it is a splen- did editorial. It points up what the people of Australia should do. They should back up the United States, now that the United States is asking for sup- port in the United Nations, or through the United Nations organization. And, Mr. President, because the discussion re- lates directly to what nations should do in support of the United Nations and the United States in this Korean crisis, it seems to me that this editorial would be very timely, if it were permitted to be printed in the body of the Recorp as part of the discussion of this over-all ques- tion, I ask unanimcus consent that the cditorial may be printed in the Recorp at this point in my remarks. There being no objection, the editorial was ordered to be printed in the Recorp, as follows: Listen, Mz. Menzies! Oty Frienpos Are CALL~ ING For HELP If the gentlemen in Canberra have the vaguest idea of this nation’s best interest, they will announce, without any more beat- ing about the bush, that Australia will sup- port the hard-pressed Americans in Korea with a division of land troops and more squadrons of fighting planes. The reasons why we should give thie aid, without hedging, should be obvious to every Australian who remembers how we felt in 1941 when this country lay wide open to invasion. If the Americans are swept out of Korea end Formosa the Russian front will be triumphant throughout Asia. Whatever friends we have still on the Asiatic Continent will desert us. Then Australia will be far out on 2 lonely Umb. UNO and collective security—the alliance of free peoples—will die. And the first nation to suffer from that death will be white Australia. xXcvI-——715 CONGRESSIONAL RECORD—SENATE Of all nations, this one depends on the aid of others—and especially on American aid. What saved us from battle on our soll and conquent in the last war except American help? Not a thing. Can we expect similar help again—as we will certainly need it again—if we let the Koreans murder Americans in another Dun- kerque without doing everything we can to help avert so terrible a disaster? The Americans are closely watching alt the peoples who have given flowery lip-serv- ice to UNO in the last few years and have received in return generous United States aid If these peoples sit on the sidelines now, while Americans die in an outnumbered struggle, many American people will argue that they would be wiser to spend their money on themselves and let the rest of the world sink, That might be a foolish, emotional reac- tion in the long run, but {t would be under- standable. We are told that some British people en- joy the spectacle of Americans fighting while Britain for once is at peace. That is a stupid satisfaction, which 1s like- ly to be very short-lived For only one thing keeps Britain or any of us at peace at this moment--Russia’s fear of American industrial strength backing up @ solid British-American front. Those who crow over the United States’ embarrassment in Korea are helping to smash that front-—a job on which Moscow has spent millions of her propaganda funds They would have their happiest day of all time at the Kremlin if the Korean strug- ble ended with Americans feeling that Brit- ain and ber Dominions had let Americans down. For that would damage the only military and political combination which may draw @ line to Russian ambitions. To forestall this blow to our friendship with the United States we and the rest of the British Commonwealth must show that we are prepared to give as freely and as gen- erously as we expect Americans to give when we are in difficulties. This is a moment for action whieh counts only the needs of our friend. If we let that friend call to us in vain now ‘Wwe can expect no answer to our own appeals when our time comes to face the yellow flood. PRIMF MINISTER OF AUSTRALIA TO VISIT THE SENATE The VICE PRESIDENT. The Chair would like to call the attention of the Senate to the fact, since Australia has been mentioned, that tomorrow, at 2 or 2:15, the Prime Minister of Australia is to be the guest of the Senate, and is to deliver a brief address. The Chair hopes all Senators will be present to greet the Prime Minister, who is in this country to confer with our Government regarding the nature and extent of the assistance Australia may give in the Korean situa- tion. GENERAL APPROPRIATIONS, 1951 The Senate resumed the consideration of the bill (A. R. 7786) making appro- priations for the support of the Govern- ment for the fiscal year ending June 30, 1951, and for other purposes. The VICE PRESIDENT. The time of the Senator from MTllinols has expired. Mr. LUCAS. I ask unanimous consent that I may have one additional minute. The VICE PRESIDENT. Without ob- jection, it is so ordered. Mr. LUCAS, I yield to the Senator from Arizona, 11357 Mr. HAYDEN. Mr. President, this same question was raised in the commit- tee, and we were told by those from the Department of Defense that there was a parallel situation in a number of coun- tries, that is to say, that the President or the Premier could not commit his coun- try without referring the matter to the legislature, and that that was going on all the tame. Reports have been made that help will come, but the announce- ment could not be made at this time, be- cause the legislatures of the countries had not approved it. Mr. LUCAS. The Senator, I think, is correct about that. It will require some time. In other words, we happened to have our troops in Japan, nearby. We are sending them, and also, of course, some from this country. But other countries are sending troops, and they are on the way, as I understand The VICE PRESIDENT, The Sena- tor’s time has again expired. All time has expired on this amendment. The question is on the amendment of- fered by the Senator from Arkansas [Mr. MCCLELLAN) to the committee amend- ment. Mr. LANGER. I ask for the yeas and nays. The VICE PRESIDENT. The amend- ment has been accepted by the commit- tee. {Putting the question.] The amendment is agreed to. The commit- tee amendment is still open to amend- ment. Mr. MALONE. Mr President, I ask that the amendment offered by me may be read at this time. The VICE PRESIDENT. The Secre- tary will state the amendment. The Leorsnative CLERK. In chapter X-B, it is proposed to strike out all after line 3, on page 447, down to and includ- ing line 17; and, at the proper place in chapter XI, insert an amount equal to the sum stricken from the chapter X-B, to be used for defense purposes. The VICE PRESIDENT. The Senator from Nevada is recognized for 5 minutes, SUGGESTED 10-POINT PROGRAM FOR WINNING THE WAR Mr. MALONE Myr. President, no one believes that the $10,400,000,000 cur- rently requested by the President is any- thing but a start. However, the Presi- dent has not yet outlined what is in- volved in the police action which he in- gugurated without requesting the ap- proval of Congress, except through ad- ditional appropriations. Mr. President, the junior Senator from Nevada is suggesting a 10-point program and an outline for emergency procedure. Only one amendment is needed. The remaining nine can be brought about through Executive order. First, transfer ECA funds to the war chest. Second, stop the pressure from our State Department to recognize Commu- nist China, Third, stop Marshall-plan countries from arming Russia and her satellites Fourth, call on England and France to cancel their separate nonaggression pacts with Russia. Fifth, reduce our domestic Govern- ment budget by 20 percent and add
11356 the President in his diseretion can stop the spending of ECA funds in that coun- try and for that government. Mr, President, that should be done. That is all the amendment to the com- mittee amendment provides. It is not compulsory; it leaves the matter to the discretion of the President of the United States. Someone has said, “We ought not say that now out loud; that we should tell them that in a whisper when we give them the money.” Well, Mr. President, let us tell it to them now in the language of this bill. Let us whisper it loud enough so that when the President says, ‘‘Give us some help,” these countries will know that the Congress of the United States is back of the President, giving him our moral support, and that the Congress and the people of this Nation do not want this ECA money-——which is appropriated by us to help in the fight against commu- nism—to be spent in countries which will not, when the crisis, the real test comes, stand up and be counted in the fight against communism. That is all there is to the amendment. Mr. STENNIS. Mr. President, will the Senator yield? Mr. McCLELLAN. I yield 1 minute to the junior Senator from Mississippi. Mr. STENNIS. Mr. President, I wish enthusiastically to support and endorse in full the amendment offered by the Senator from Arkansas to the committee amendment. The battle call has already been sounded; it was sounded more than a month ago. Our men are actually fight- ing and dying on the battle Hine. The blue-and-white flag of the United Na- tions has been unfurled, representing a new forward step in international affairs. However, we are the only country whose men are actually fighting and giving their blood and dying on the battle linc. The operation of the amendment will not be arbitrary, for it leaves discretion with the President. There is plenty of time to put the amendment into opera- tion, and there is plenty of time for these nations to have advance notice. It seems to me that this is the test; this is it. All these years we have been charged with having been the cause of the failure of the League of Nations. Now we have taken a leading part in the United Na- tions, and today we are on the battle line. So it seems to me that this is the test; and no one who is acting in good faith in connection with the recovery program can object to this step. Mr. FERGUSON. Mr. President, will the Senator yield? Mr. McCLELLAN. I yield 1 minute to the Senator from Michigan. Mr. FERGUSON. Mr. President, I wish to endorse wholeheartedly the amendment of the Senator from Arkan- sas to the committee amendment. Today we have a new kind of citizen- ship—citizenship in the United Nations. Every member of the United Nations is in effect a citizen of the United Nations, and in time of war they can be classi- fied only one way or the other: they are either for the new nation of which they ere a citizen or they are against tt. In CONGRESSIONAL RECORD—SENATE a case of this sort, when a country gives aid and comfort to the enemy, that coun- try is guilty of treason, to all effects and purposes. I think the time has come when the people of the United States, through their Senate and their House of Repre- sentatives, should speak and be heard as advising the President that we ex- pec: that the citizens of the United Na- tions, the members of the United Na- tions, will take either one side or the other in the great conflict now going on in Korea, the aggression of the North Koreans against the South Koreans. In this conflict, all nations who are mem- bers of the United Nations must demon- strate tat they are either for or against the United Nations. Those who give aid and comfort against the United Na- tion. are in effect themselves guilty of acts of aggression. They should not be given aid by the United States of Ameri- ca when we are trying to fight commu- nism not only in Korea but in other parts of the world. Mr. KNOWLAND. Mr. President, will the Senator yield? Mr. FERGUSON. Iam glad to yield. The VICE PRESIDENT. The Sena- tor’s time has expired. Mr. McCLELLAN. Mr. President, be- fore the vote is taken on the amendment, I ask that it be again stated by the clerk, so that all Senators will under- stand it. Mr. McKELLAR. Mr. President, the Senator from Arkansas wants the amendment again stated by the clerk, and I yield that much time—tf it does not take all the remaining time. The VICE PRESIDENT. The clerk will restate the amendment. The LxecisLaTive CLERK. On page 448, before the period in line 24, it is proposed t. insert a comma and the following: “Provided further, That no part of the fuads herein appropriated shall be used to provide assistance to any participat- ing country which, in the opinion of the President, has failed, refused, or neg- lected to support the United Nations in the Korean War by supplying armed personnel, materials of war, or services.” Mr. McKELLAR. Mr. President, I wonder whether the Senator from Ar- kansas would be willing to let the amend- ment go to conference, to be considered there. I think it is subject to a point of order, but if the Senator is willing to let it go to conference, we will accept it. Mr. McCLELLAN. I thank the able Senator. Of course, it will have to go to conference, and I am perfectly willing that it go to conference. But I hope it w'” be retained in this bill. Mr. LUCAS. Mr. President, I agree with the Senator from Tennessee that the amendment is subject to a point of order. However, the Senator from Mili- nois will not raise the point. I do not raise it because I am confident that the Senator from Arkansas, in this amend- ment, is facing in the right direction so far as the United Nations organization is concerned, and insofar as all men who believe in the free way of life are con- cerned. I should like to advise the Senate that, at the first meeting we had with the President of the United States, the Cab- JULY 31 inet, and high members of the military, the Army and the Navy, the Senator from Maryland (Mr. Typtnes), and I, at that very first meeting, advocated this very thing. We thought it was very necessary that all nations partiicpating in the United Nations organization show their good will and their intention of going along with us by doing some- thing along this line. Since that time, the nations have indicated their will- ingness to help, and I think it is a source of something really worth while for the United Nations and the free world to have all these nations doing something which they can do for the free world, something which indicates that they are with us in this fight. That is what the Senator from Arkansas is aiming to ac- complish, by giving the President the power to do the things enumerated. Mr. McCLELLAN. Mr. President, will the Senator yield? Mr. LUCAS. I yield. Mr. McCLELLAN. I merely want the other countries to know that we are fur- nishing this money, and that the eyes of America are upon them. We want to know whether they are ready to stand up and be counted to the extent of their ability, whenever a crisis comes. If not, I do not favor spending time or money with them. Mr. STENNIS. Mr. President, will the Senator yield for a question? The VICE PRESIDENT. Does the Senator from Illinois yield to the Sen- ator from Mississippi? Mr. LUCAS. In amoment. I should like to make a further observation with respect to certain countries sending mili. tary and other forms of aid. We must realize, wheil we think of the 59 nations of different languages and different types of munitions, and so forth, so far as military aid from them is concerned, it could become a lability rather than an asset. At the same time, they can furnish materials or articles that vill be of aid in connection with this crisis. They could send troops, even though they could not speak our language, to be used for example in bringing out those who are wounded, or for certain kinds of fleld duty, or to do something in the rear of the front lines, so far as menial services are concerned. I think that is ‘ what the American people desire. Mr. McCLELLAN. That is what we want. Mr. LUCAS. This is a step in the right direction, and I certainly shall not object to it. Mr. STENNIS. Mr. the Senator yield? Mr. LUCAS. I yield. Mr. STENNIS. The Senator from Tilinois says there have been promises and expectations held out. Will the Senator be more specific? We have promises, but the only things that are definite I think are that Turkey is send- ing, or offering to send, 4,500 trained combat troops; Thailand, 4,000 soldiers; and Bolivia, 30 officers. Mr. LUCAS. I do not know wrat 30 officers from Bolivia. could do in Korea. Mr. STENNIS. I am not referring particularly to them. But let us be as specifiic as we can as to what has ac- tually been put on the Hine, or sent, or President, will
1950 representations made that it will be sent at any particular time. Mr. LUCAS. It is my understanding that England is now preparing to send 6,000 infantrymen, engineers, and ar- tillery. They will all be foot soldiers. It is my understanding Australia ts sending foot soldiers, and that another nation is probably sending some. Mr. THYE, Mr. President, will the Senator yield? Mr. LUCAS. I shall yield in a mo- ment. I am now quoting from memory, but I know that there are countries which have expressed a willingness to do what is being suggested here. The more we can discuss it and the more the Congress becomes interested in such a program, the better it will be for our own country, and the better for all the peopies concerned. Mr. STENNIS. Does not the Sena- tor think that the subject ought to be debated more at length, and that it is unfortunate when it comes up under the 10-minute rule? Mr LUCAS. I might debate it at great length, and go along with every- thing said in furtherance of it. I now yield to the Senator from Minnesota ASSISTANCE FROM AUSTRALIA—EDI- TORIAL FROM THE SYDNEY DAILY TELEGRAPH Mr. THYE. Mr. President, I received by air mail from Australia an editorial which appeared in one of the leading Australian papers. 1 think it is a splen- did editorial. It points up what the people of Australia should do. They should back up the United States, now that the United States is asking for sup- port in the United Nations, or through the United Nations organization. And, Mr. President, because the discussion re~ lates directly to what nations should do in support of the United Nations and the United States in this Korean crisis, it seems to me that this editorial would be very timely, if {t were permitted to be printed in the body of the Rscorp as part of the discussion of this over-all ques- tion, I ask unanimcus consent that the editorial may be printed in the Recorp at this point in my remarks There being no objection, the editorial was ordered to be printed in the Recorp, as follows: Listen, Mr. MENzrEs! OLp FrieNDS ARE CALL- ING For HELP If the gentlemen in Canberra have the vaguest idea of this nation’s best interest, they will announce, without any more beat- ing about the bush, that Australia will sup- port the hard-pressed Americans in Korea with a division of land troops and more squadrons of fighting planes. The reasons why we should give this aid, without hedging, should be obvious to every Australian who remembers how we felt in 1941 when this country lay wide open to invasion. If the Americans are swept out of Korea and Formosa the Russian front will be triumphant throughout Asia. Whatever friends we have still on the As{jatic Continent wilt desert us. ahen Australia will be far out on a lonely Um UNO and collective security—the alliance of froe peoples—will die. And the first nation to suffer from that death wili be white Australia. xXCVI——715 CONGRESSIONAL RECORD—SENATE Of all nations, this one depends on the aid of others—and especially on American aid. What saved us from battle on our soil and conquent tn the last war except American help? Not a thing. Can we expect similar help again—as we will certainly need it again—if we let the Koreans murder Americans in another Dun- kerque without doing everything we can to help avert so terrible a disaster? The Americans are closely watching all the peoples who have given flowery lip-serv- ice to UNO in the last few years and have received in return generous United States aid. If these peoples sit on the sidelines now, while Americans die in an outnumbered struggle, many American people will argue that they would be wiser to spend their money on themselves and let the rest of the world sink That might be a foolish, emotional reac- tion in the long run, but it would be under- standable We are told that some British people en- joy the spectacle of Americans fighting while Britain for once is at peace. That is a stupid eatisfaction, which is like- ly to be very short-lived For only one thing keeps Britain or any of ‘us at peace at this moment—Russia’s fear of American industrial strength backing up a solid British-American front. Those who crow over the United States’ embarrassment in Korea are helping to smash that front-——a job on which Moscow has spent millions of her propaganda funds. They would have their happiest day of all time at the Kremlin if the Korean strug- ble ended with Americans feeling that Brit- ain and her Dominions had let Americans down. For that would damage the only military and political combination which may draw a@ line to Russian ambitions To forestall this blow to our friendship with the United States we and the rest of the British Commonwealth must show that we are prepared to give as freely and as gen- erously as we expect Americans to give when we are in difficulties. This is a moment for action which counts only the needs of our friend. If we let that friend call to us in vain now we can expect no answer to our own appeals when our {ime comes to face the yellow flood. PRIME MINISTER OF AUSTRALIA TO VISIT THE SENATE The VICE PRESIDENT. The Chair would like to call the attention of the Senate to the fact, since Australia has been mentioned, that tomorrow, at 2 or 2:15, the Prime Minister of Australia is to be the guest of the Senate, and is to deliver a brief address. The Chair hopes all Senators will be present to greet the Prime Minister, who is in this country to confer with our Government regarding the nature and extent of the assistance Australia may give in the Korean situa- tion. GENERAL APPROPRIATIONS, 1951 The Senate resumed the consideration of the bill (A. R. 7786) making appro- priations for the support of the Govern- ment for the fiscal year ending June 30, 1951, and for other purposes. The VICE PRESIDENT. The time of the Senator from Illinols has expired. Mr. LUCAS. I ask unanimous consent that I may have one additional minute. The VICE PRESIDENT. Without ob- jection, it {s so ordered. Mr. LUCAS, I yield to the Senator from Arizona, 11357 Mr. HAYDEN. Mr. President, this same question was raised in the commit- tee, and we were told by those from the Department of Defense that there was a parallel situation in a number of coun- tries, that is to say, that the President or the Premier could not commit his coun- try without referring the matter to the legislature, and that that was going on all the time. Reports have been made that help will come, but the announce- ment could not be made at this time, be- cause the legislatures of the countries had not approved it. Mr. LUCAS, The Senator, I think, is correct about that. It will require some time. In othcr words, we happened to have our troops in Japan, nearby. We are sending them, and also, of course, some from this country. But other countries are sending troops, and they are on the way, as I understand. The VICE PRESIDENT. The Sena- tor’s time has again expired. All time has expired on this amendment. The question is on the amendment of- fered by the Senator from Arkansas (Mr. MCCLELLAN] to the committee amend- ment. Mr, LANGER. I ask for the yeas and nays. The VICE PRESIDENT. The amend- ment has been accepted by the commit- tee. {Putting the question.) The amendment is agreed to. The commit- tee amendment is still open to amend- ment. Mr MALONE. Mr. President, I ask that the amendment offered by me may be read at this time. The VICE PRESIDENT. The Secre- tary will state the amendment. The Lecisnative CLERK. In chapter X-B, it is proposed to strike out all after line 3, on page 447, down to and includ- ing line 17; and, at the proper place in chapter XI, insert an amount equal to the sum stricken from the chapter X-B, to be used for defense purposes. The VICE PRESIDENT. The Senator from Nevada is recognized for 5 minutes. BUGGESTED 10-POINT PROGRAM FOR WINNING THE ‘WAR Mr. MALONE. Mr President, no one believes that the $10,400,000,000 cur- rently requested by the President is any- thing but a start. However, the Presi- dent has not yet outlined what is in- volved in the police action which he in- augurated without requesting the ap- proval of Congress, except through ad- ditional appropriations. Mr. President, the junior Senator from Nevada is suggesting a 10-point program and an outline for emergency procedure. Only one amendment is needed. The remaining nine can be brought about through Executive order. First, transfer ECA funds to the war chest. Second, stop the pressure from our State Department to recognize Commu- nist China. Third, stop Marshall-plan countries from arming Russia and her satellites Fourth, call on England and France to cancel their separate nonaggression pacts with Russia. Fifth, reduce our domestic Govern- ment budget by 20 percent and add
11358 three and one-half billion dollars to the war chest. . Sixth, transfer to the war chest the $500,000,000 available for domestic peacetime public works. Seventh, transfer to the war chest the one and one-fourth billion dollars avail- able for military assistance to forcign countries and unify our military efforts. Eighth, remove from the State De- partment Dean Acheson and his satel- lites. Ninth, establish a definite foreign pol- icy, describe the areas, and name the nations whose integrity we must cur- rently protect for our own ultimate safe- ty, and notify the world and our own people what we mean to protect. Tenth, appropriate the necessary funds to build a national-defense or- ganization, spearheaded by an Air Corps and a submarine fleet that will be notice to the world and to our own people that we can enforce our commitments. Mr. President, supporting the 10-point program, I submit the following: First. Transfer ECA funds to the war chest. ECA assistance for building up European peacetime industry was to ke a@ peacetime endeavor. While we must pay for a new war, our people cannot be expected to carry the burden of 16 for- eign countries on their backs. Second. Stop pressure from our State Department to recognize Communist China. My fellow Senators will recall that Mr. Acheson told us that the United States would not use its veto power to block United Nations’ recognition of the Communist regime in China. Appar- ently, this was the last official act on the part of our State Department before the Soviets starled their attack on South Korea. We cannot, with any degree of consistency, fight communism on the one hand and recognize it on the other. Third. Stop the 16 Marshall plan countries from arming Russia and her Satellites through the 96 trade treaties which have been made between those countries, We should take every reason- able means to see to it that the 96 trade treaties are canceled immediately. NINETY-SIX TRADE TREATIES WITH RUSSIA AND IRON-CURTAIN COUNTRIES The 16 Marshall plan, ECA nations, have 96 important trade treaties with Soviet Russia and such iron curtain countries shipping them everything they need to consolidate their gains and to make war. Both England and India, through their spokesmen, Bevin and Nehru, have said that they intended to remain neutral, they wanted to trade with Russia and the Communist countries. Now, these came nations, erstwhile al- Hes, and other nations, have recognized Communist China without consulting this Ne.tion, at least without the Ameri- can people being informed, thus leading us into a foreign policy not only distaste. ful but which may be definitely danger- ous. Therefore, it is high time that the State Department discharge their consti- tutional responsibility and make up their mind and inform the American people and the Congress of the United States just what our foreign policy should be CONGRESSIONAL RECORD—SENATE before it is too late. It is later than we think. A list of the 96 trade treaties which the 16 Marshall plan countries has made and which are in good standing at this time will be found on pages 818 and 819, in the ConGrESssIoNAL Recorp of January 24, 1950. Fourth. Call on England and France to cancel forthwith thelr nonaggression pacts with Soviet Russia. It is time for the countries which we have befriended to choose sides, NONAGGRESSION PACTS I shall quote briefly from a nonaggres- sion pact signed by Anthony Eden, rep- resenting Britain, and V. Molotov, rep- resenting Communist Russia. This treaty, signed by these two men repre- senting their respective countries of Britain and Russia, which is still in full force and effect, contained two signifi- cant articles. Article 6 in the Soviet- Britain Pact provides: The high contracting parties agree to ren= der one another all possible economic asbtist- ance after the war. Article 7 reads: Fach high contracting party undertakes not to conclude any alliance and not to take part in any coalitlon directed against the other high contracting party. Mr. President, those provisions read startlingly like the North Atlantic Pact. Since they have pacts now with both the Soviet Empire and the United States of America, it is difficult to see how they could lore in any emergency which might occur later. They have signed up with both Russia and the United States. In the treaty signed by Mr. Molotov, again, and Mr. Bidault, representing France, which was signed in Moscow, the two articles corresponding with the two just read taken from the British Empire and the Russian Empire treaty, are article 5 and articie 6. Article 5 of the French-Russian nonaggression pact reads: The high contracting parties undertake not to conclude any alliance and not to take part in any coalition directed against either of the high contracting parties, Article 6 reads: The high contracting parties agree to ren- der each other every possible economic assist- ance after the war. Mr. President, both these nonaggres-~ sion pacts are in full force and effect. All the 95 trade treaties mentioned in the debate today are in full force and effect, meaning that the parties are continu- ing at all times to send all the material necessary not only to Russia to consoli- date her gains in eastern Europe and in Communist China, and to make war quietly and secretly, as they have in the past in China and Indochina and the Malayan States and the rest of the Far East, but they are sending them mate- rial to make war on the United States of America, if they have that idea in their minds, The State Department and the bipartisan group in this body sold that idea, that Russia was and is our poten- tial enemy, thoroughly to the United States Senate during the first session of the Eighty-first Congress, and all JULY 31 { through the second session of the Eight- jeth Congress. Fifth. Reduce our strictly domestic Government budget by 20 percent and transfer the amount saved to the war chest. This would not take one penny from national defense, the stockpiling of atomic energy, veterans’ aid, or inter- est on the public debt. It would simply reduce by 20 percent the domestic spend- ing which is in no way connected with those items. Let us look at our budget for the current fiscal year: National defense__...-._.-. $13, 545, 000, 000 Veterans’ services and benefits .-...------.--. 6, £0, 000, 000 Interest on public debt.... 5, 626, 000, 000 Remaining -.--.------.... 17, 169, 000, 000 Total .2...-..--.---. 42, 439, 000, 090 We would save $3,500,000,000 by re~ ducing the seventeen-billion item by 20 percent. It has been pointed out by the committee headed by the distin- guished Senator from Virginia how a saving of more than this could easily be made on our domestic spending, The administration says the people must tighten their belts. Speaking of curbs for civilians, how about some curbs for the Government as well? If ordinary citizens must cut down on butter in favor of guns, why not render some lard out of the bureaucratic jobs also? Another Member of this body from across the aisle, the distinguished senior Senator from Arkansas, able chairman of the Senate Committee on Expendi- tures in the Exccutive Departments, called attention to the fact that the ade ministration could easily tighten its belt. In his report, the senior Senator from Arkansas warned that “this tremendous rising cost—of government—is indica- tive of a fixed permanent trend that cannot be ignored or remain unchal- lenged.” And he added that this pro- vides a ‘warning of compelling force against our proceeding with reckless in- difference to enact more and more laws expanding present governmental serv- jces and instigating new programs creating additional governmental obli- gations that will add billions annually to the already swollen costs of govern- ment.” The necessity of more economy in gov- ernment is greater now than it wags then. The 1951 budget still covers up much of the waste, duplication, payroll pad- ding, and inefficiencies exposed by the Hoover Commission, Byrd committee and other survey agencies in their nu- merous reports. These add up to billions of dollars of possible savings. All in all there is room for economizing if the Congress has the guts to do it. Sixth. Transfer to the war chest the one-half billion dollars available for do- mestic peacetime public works. Worthy as are our peacetime public works, our taxpayers cannot be expected to pay the cost or furnish the necessary manpower during the war emergency. In wartime such works are unnecessary, and in fact, undesirable, Our money and our man- hours should be devoted to the war effort. This five hundred million should be transferred to the military program.
1950 Seventh. Transfer to the war chest the one and one-fourth billion dollars available for military assistance to for- eign countries. Our own expanded mili- tary program must be upon a basis of defending the nations whose integrity is important to our ultimate safety. Our military efforts, however, should be uni. fied. Otherwise we might very well be delivering arms to areas which will fall into the hands of our enemies. Coun- tries which we have been arming have shown little concern for our present pre- Gicament and are still sending potential war materials to Russia and her sat- ellites. Eighth. Remove from the State De- partment Dean Acheson and his satel- lites who were responsible for the bun- gling in foreign policy which brought this country to its present plight. It is im- perative that we remove these men be- fore other serious mistakes sare made. There are many well-informed people who believe that the primary aim of Stalin and hfs Politburo in the Kremlin Js the economic destruction of the United States, that war with America is second- ary and an alternative that will be avoided, if possible, and postponed as long as possible if it is unavoidable. The view in the Kremlin is that the capital- istic United States is the keystone to the entire capitalistic system, and that if that keystone can be brought down, the whole western economic system in Europe, in North and South America, and what is left of it in Asia and Africa will crash. The spearpoint of Soviet Russian po- litical, ideological, economic, and mili- tary strategy to attain this objcctive, according to well-informed people who hold this belief, is continual war alarms on the world-encircling front of Ameri- can commitments, calling for ever-in- creasing appropriations of vast sums of money in the United States for arma- ments and war preparations, and in Britain, France, Greece, Turkcy, Persia, and other countries dependent upon America for economic and financial aid and military support. Stalin’s orders are reported to be to bring about the collapse of America’s capitalistic economy through war alarms, enormous appropriations calling for ever higher taxes, dislocation and disruption of normal business, and ever-increasing demands by other countries dependent on American financing for aid and arm- aments, thus building up gigantic na- tional debts. In Washington the administration {is unwittingly playing Stalin’s game today, just as it has done since the day of un- conditional surrender. In war, the side which holds the int- tiative to determine the time and place of action has a tremendous advantage over the foe. In the present war in Korea, the initiative is held by Soviet Russia, which can determine the time and place of action. Korea, Formosa, French Indochina, Hongkong, Pakis- tan, Iran, Turkey, Greece, Yugoslavia, Germany—any of these might have been selected as the arena of battle. Any of these places might be chosen for the next battle in a prolonged, costly and irritating war. CONGRESSIONAL RECORD—SENATE The Russian holds the initiative be- cause, in a word, at Yalta and Potsdam, Russia’s initiative was confirmed, and more recently it has been strengthened in the persistent effort of Great Britain, India, and the State Department to have Soviet China recognized by the UN. Now, another point in regard to the blunders of Acheson and his satellites: It is announced now that President Truman is seeking a big war stockpile of strategic war materials. Had the State Department had a little foresight, this pushing of stock piling would not have waited until now. As a matter of fact, the State Department’s foreign~ trade policy has shut down approximate- ly 70 percent of the American mines which were producing strategic war minerals, On the Senate floor, on March 7 of this year, the junior Senator from Ne- vada read an obituary notice on five Strategic metals—mercury, antimony, tungsten, manganese and chromite—es- sential in peacetime and doubly essen- tial in wartime—the production of which ceased as a direct result of State De- partment foreign-trade policy. The administration would like for everyone to overlook the civilian blun- ders by Truman’s Secretary of State Dean Acheson which left the profes- sional fighting leaders hamstrung and drained of resources when the admin- istration reversed itself suddenly and told the military to defend an area which the White House and the State Department had formally declared would not be de- fended. In the American intervention in Korea, under the circumstances it oc- curred, it seems to me that administra- tion policy overrode the sound judgment of the American Chiefs of Staff. Gen- erals, admirals, soldiers, airmen and sea- men are expected to make good the blunders of statesmen. American boys are paying the penalty in bloodshed in Korea today because of incompetence and lack of foresight on the part of our State Department. We can charge to the State Department the agreement concerning Berlin which did not provide for egress or ingress by western power personnel, We can also charge the State Department with the handing over of Manchuria to Soviet Russia. We can charge to the State De- partment the steps leading to the Ko- rean situation. The people responsible for the foreign policy have been weak or worse. If we are to win this war and regain our prestige in the world, these persons must be removed. Ninth. Establish @ definite foreign Policy. (a) We should determine the areas in the world—in Europe, Africa, Asia, the South Seas, and the Western Hemi- sphere—which are important to our ulti- mate safety. We should determine the countries whose integrity is tmportant to us. For 127 years the Monroe Doc- trine has worked. This Nation decided 127 years ago that the integrity of the Western Hemisphere was important to us. Now, apparently, the integrity of other areas is important to us. Let Government officials in whom the peo- 11359 ple have confidence decide what those areas are. (b) We should name all such areas and all countries so that everyone will know exactly what we will fight to pro- tect. This will give us a good chance to stay out of trouble. Our own people are entitled to know what we are fighting for. The general opinion today is that Russia would not have started the Ko- rean push if the Kremlin had known we would fight to protect the Republic of Korea. (c) We should build a defense organ- ization, spearheaded by an air corps and submarine ficet of such strength that the world will realize we can enforce our pronouncements, Now, a little late, the administration approved universal military training. The junior Senator from Nevada intro- duced a bill calling for universal military training 2 years ago, and the bill was buried in an administration-controlled committee. Now, after a little fifth-rate country gives the United States one de- feat after another, the administration wakes up to the need of the very thing they chose previously to ignore. There has been stupidity all along. Out in Korea young Americans, lack- ing adequate arms, training, and rein- forcements, are being killed. And they are not being helped a bit by those who chose to ignore the bill for universal] mili- tary training. As the junior Senator from Nevada stated when introducing the bill: Universal training offers the only method through which we could insure a sufficient number and dispersal of trained military manpower without overburdening the coun- try’s economy through the maintenance of a huge standing Army, Navy, Alr Force, and Marine Corps. He also suggested that our young men should be trained for their own survival when the emergency arrives. Tenth. Mr. President, I will close with a brief reference to the enormous amount of money we have appropriated for national defense. Where did the forty-eight and one-half billion dollars go? Since the close of World War II Congress has appropriated forty-eight and one-half billion dollars for national defense, and yet we meet ignominious de- feat at the hands of little Korea. What was the forty-eight and one-half billion supposed to provide for us? Surely something better than we seem to have. Let me read to you a brief editorial which appeared in the July 27 edition of the New York Journal-American: Tue ADMINISTRATION'S DUTY President Truman is asking Congress to provide $10,486,976,000 in new military funds, and to meet part of the requisition by levy- ing $5,000,000,000 in new or increased taxes. The President wants the 610,000,000,000 because, as the little war in Korea suddenly demonstrated, our national defense is in- adequate, although we have expended in 4 years of peace #50,000,000,000 for military purposes. Our unreadiness to meet promptly @ s0- called police action in an area as limited as South Korea indicates that the administra- tion has made no wise use of the immense funds it has already had. So the administration wants more money to do what it should have done before.
11360 And, of course, Congress will assign the funds, if no better way can be found. But there is a better way—or at least one that should have priority. For how has it happened that the admin- istration now calls for war taxes to meet its military needs? Actually, we have continued on a war-tax basis all during the peace—or cold-war— period. The excise war taxes have never been re- pealed or reduced. The personal income and corporation taxes have remained at high levels. Payroll taxes still flow into the Treasury. Consequently, new war taxes must be added to the war taxes already in effect, which have been retained ever since the last war ceased, This happens partly because of the New Deal's gross mismanagement of defense ex- penditures. It happens more largely because of the New Deal’s extravagant expenditures for non- military purposes. Obhviously—and in view of the adminis- tration’s current deficit—the primary de- fense need is to eliminate all unnecessary expenditures and put to defense uses the sums retrieved. If this be done, no tax increase would be justifiable at this time, since the admin- istration would have in hand the $5,000,000, 000 which it seeks in new taxes. If the job were well done, the administra. tion might have even the whole $10,000,000,- oco desired for military requirements—and perhaps enough besides to balance the budget. Until the administration is willing to make some political sacrifices for the national se- curity, its demands for sacrifices by the pub- Jjc are made with very 111 grace. HOW TO SAVE $8,250,000,000 FOR THE WAR CHEST (a) Suspend ECA, a peacetime en- deavor, save $3,000,000,000. (b) Suspend domestic peacetime pub- lic works, save $500,000,000. (c) Suspend 20 percent of civil Gov- ernment spending, save $3,500,000,000. (d) Suspend extra foreign military assistance, save $1,250,000,000. Total savings, $8,250,000,000. There is no valid reason for gouging the people to build up peacctime econ- omy in Europe and finance domestic peacetime projects here while we are on a wartime basis. Economy is a much sounder method of meeting the in- creased military costs than burdening the American people with more taxes, Let us put our own house in order, and properly prepare to win this and any other war forced upon us. The nine points which I have listed and discussed gives us 8 winning program. The VICE PRESIDENT. The ques- tion is on agreeing to the amendment offered by the Senator from Nevada [Mr. MALONE], The amendment was rejected, Mr. HAYDEN. Mr. President, I ask for the approval of the entire commit- tee amendment. The VICE PRESIDENT. That entire matter is to be voted on as a whole——— Mr. HAYDEN. If the Chair will par- don me, ordinarily with an appropria- tion bill we vote paragraph by para- graph. We have now considered the first paragraph which relates to eco- CONGRESSIONAL RECORD—SENATE nomic cooperation. The next paragraph relates to assistance to Korea. The VICE PRESIDENT. The Chair understands that the whole chapter is considered as one amendment, to be vot- ed on as a single amendment. Mr. HAYDEN. That was not my un- derstanding. I ask unanimous consent that for the purposes of amendment the entire chapter be considered as original text. If it were original text in the bill we would adopt it paragraph by para- graph. I think that is the orderly way in which to dispose of 1t. The VICE PRESIDENT. The Senator from Arizona asks unanimous consent that the entire committee amendment be considered as the text of the bill for purposes of amendment, which means there would be a difference in degree of amendments which would be offered. Mr. McKELLAR. Reserving the right to object, what effect would that nave on the amendment which I desire to of- fer at this time? I should like to have permission to have it passed upon first. Mr. HAYDEN. When that page of the bill is reached, which is page 451, the Senator can offer his amendment. Mr. McKELLAR. Would it be in order after the request of the Senator is agreed to? Mr. HAYDEN. Iam not making such a request now. I thought it would be more orderly to proceed paragraph by paragraph. The VICE PRESIDENT. Under the agreement heretofore made, the whole chapter is open for amendment as a single paragraph. Mr. LODGE. Mr. President, may I be recognized for 1 minute, under the unanimous-consent agreement? The VICE PRESIDENT. There is an amendment pending. Under the agree- ment, there is no provision for general remarks. The Senator will be recog- nized on the committee amendment itself, Mr. McKELLAR. Mr. President, I call up my amendment, which applies to page 451 of the bill, and ask that it be stated. The VICE PRESIDENT. The Secre- tary will state the amendment offered by the Senator from Tennessee. The Curer CLerK. On page 451, line 5, it is proposed to strike out ‘$10,000,000” and insert “$26,900,000”; on page 451, line 18, after “any project”, insert “ex- cept for demonstration or instructional purposes”; on page 451, lines 19 and 20, strike out “(not to exceed 10 per centum).” Mr. SALTONSTALL. Mr. President, a@ parllamentary inquiry. The VICE PRESIDENT. The Senator will state it. Mr. SALTONSTALL. Was there not an amendment offered by the Senator from Nevada (Mr. MALONE], and was it acted upon? Mr. McKELLAR. It was acted upon. The VICE PRESIDENT. It was re- jected. Mr. LODGE. Mr. President, will the Senator yield? Mr. Mc. R. I yield. JULY 31 Mr. LODGE. Mr. President, the dan- ger which faces us has already forced us to take such unusual steps as to mo- bilize manpower and industry and to shed American blood in Korea. But there are other measures which we must take which would have seemed equally unusual a few months ago. There is first the entrance into the Atlantic Pact of two former neutrals of World War Il—Ireland and Spain, which are both Atlantic nations possessing stra- tegic terrain and valuable manpower. The State Department should use its good offices to promote whatever adjust- ments are necessary between these na- tions and their neighbors so that they can help the rest of the non-Communist world to carry the load. Looming even larger is the policy to be followed toward the two former enemies of World War II, Germany and Japan. It is no exaggeration to say that the fate of these nations is a life-and- death matter for the United States, for, if the Soviets captured Germany and Japan they would possess such a huge industrial potential that they might think they could destroy the United States. We are deeply grateful to the nations which have realized that this fight is their fight and which have sent troops to Korea. We mus. also recognize that it is unfair to us and to these free na- tions to carry the whole load of combat alone. The former neutrals—and even the former enemies—of World War II must help in this struggle for survival of human freedom. It is only fair that they bear part of the burden since their own existence is also in danger. Mr. LANGER. Mr. President, will the Senaior yield? Mr. McKELLAR. 1 yield 1 minute to the Senator from North Dakota. Mr. LANGER. I shall not want more than a quarter of a minute. Mr. President, I want to state that I believe the last amendment the Senate adopted is one of the most important amendments which has come up during the discussion of the bill. Iam 100 per- cent for it, and I hope that in confer- ence it will be insisted upon by the Sen- ate conferees and will be retained in the bill. Mr. McKELLAR. Mr. President, by direction of the Appropriations Commit- tee, I wish to call up two more amend- ments dealing with page 451 of the bill. The VICE PRESIDENT. The Sena- tor’s amendment has already been stated. Mr. McKELLAR. I want to say that the amendment increases the appropria- tion for point 4, and I hope it will be adopted. The Committee on Appropria- tions, so far as I recall, virtually unani- mously instructed me to offer the amendment. Mr. SALTONSTALL. Mr, President, will the Senator yield? Mr. McKELLAR. I yield. Mr, SALTONSTALL, Mr. President, I am very glad the Senator from Ten- nessee has offered the amendment. I favored the amendment in the commit-
1950 tee. I was in favor of a lower amount, but was voted down with reference to that. Iam certainly glad that the com- mittee is in favor of the amendment. My. McKELLAR. Mr. President, with that statement, I leave the matter to the Senate, and ask for a vote. The VICE PRESIDENT, The ques- tion is on agreeing en bloc to the amend- ments offered by the Senator from Ten- nessee [Mr. MCKELLAR]. The amendments were agreed to. Mr. HAYDEN. Mr. President, I offer an amendment on page 461 under the heading “Aid to Palestine Refugees,” The amendment proposes on page 461, line 22, to strike out “$24,705,000” and to insert in lieu thereof “$27,450,000”, which is the budget estimate and the amount authorized by law. In this in- stance the reduction took place exactly in the same manner as heretofore re- CONGRESSIONAL RECORD—SENATE cited by me with respect to the reduction in the ECA appropriation. It was an arbitrary 10-percent cut in the amount of money for which the budget had asked and for which the committee had at first voted, but subsequently reduced by 10 percent. The people affected are the Arabs who were driven out of Palestine in the course of the war. It seems to me that the cut of $2,745,000 \s too dras- tic. In view of the pitiable condition of these people I think the Senate should restore the amount which was author- ized by law and provided for in the budget. The PRESIDING OFFICER. The question is on the amendment offered by the Senator from Arizona [Mr Haypen]. The amendment was agreed to. Mr. SMITH of New Jersey. Mr. Pres- ident, I ask unanimous consent to speak for 1 minute with respect to contribu- Armed aid tn Korea by United Nations members 11361 tions of armed aid in Korea by United Nations members. The PRESIDING OFFICER. Is there objection to the request of the Senator from New Jersey that he be recognized for 1 minute? The Chair hears none, and the Senator from New Jersey {s rec- ognized for 1 minute, Mr. SMITH of New Jersey. Mr. Presi- dent, under date of July 27, 1950, I had & compilation prepared showing the armed aid in Korea by United Nations members. The question was discussed this afternoon in connection with an amendment which had been offered by the Senator from Arkansas [Mr. Mc- CLELLAN]. I ask that the memorandum be printed in the Recorp at this point in my remarks. There being no objection, the memo- randum was ordered to be printed in the RecorpD, as follows: Ground forces Air forces Naval forces Australia... eee nee eee meee ee “Ground {toops”—particulars undecided_.........-- 1 Aghter squadron, in Japan when war | 1 destroyer, 1 frigate—both im began, now in action action, 0 a ae Air transport, quantity unknown, should be uctive soon. Bolivia__...... 02. nee eee eee ene eee eee “630 oMcers” oe ee eee eee nee eee eee eee eens [eee cee eee cere eee eee wee erence neeee Cer es ne 1 long-range alr transport squadron and | 3 destrovers, in action, ground crews--Suon « China _ w...0.0---.-- - 20 C-47 transports (not secepted)........0- Denmark .....0 22 e ee cece e cece twee ee] ence eee cee eee eee c nme ce sunenceewmmenens ceeeweee [eee cen eae Se teen e reece amen emer enemmeee Perhaps 1 meichant ship (under Greece ...-.. Netherlands... .- New Zesland....--------------- eee nee “Wa Q pecial combat unit,” probably artillery--some elay expected, Norway... ..-ccce seen nce n een nent eee [een e een cent e ne enn ene newer eee eeeeenn neem enennenee| Seen neenee enn naenns cemmemoreereneseemmenne negotiation) 1 sloop, 1,900 tons—in action soon. 1 destroyer, fn action 2 frigates (resemblo destroyers)— in action, Merchant tonnage (amount un- specified, discussions going on). 3 eruisers, 2 carricra, 6 destroyers and L)o’s—in action from the start, RECAPITULATION FORCES IN ACTION AND FORCES EXPECTED holland... 2..2..--e eee ee eee eee nee 4,900 ofoers and men: organized unit, said to be high uality, Turkey .- 2-2 --- eee nn een en ence eee 4,500 trooper United. Kingdon ....-.-...--------cnee A “self contained force,” said to be of brigade alze (5,000 to 6,000 troops). Now In action......--22.-- ee enn neem een None os yet_._. Offered and expected soon ......-..--.-. Offered but not expected soon .......--- Perhaps 4,000 That troops............--2--..----002- Australian (number unknown), New Zealand special | 6 Greek transports 1 fighter squadron (Australian)...........- Air traneport’ 1 Canadian squadron, Bel- 8 cruisers, 2 carriors, 15 smaller combat, ships J sloop (Freuch), gian (umount unknown), unit; 4,600 from ‘Turkey, 5,000 to 6,000 from United Kingdom. Offered but not accepted... expected to serve, The PRESIDING OFFICER. The question is on the committee amendment to section XB, as amended. Mr. McCARRAN. Mr. President, in the past 20 minutes discussion has de- veloped between the respective leaders looking toward postponing consideration of my amendment until tomorrow. If it is to go over until tomorrow, the decision to have it go over should be made now. Otherwise we shall go on for 3 hours this afternoon. So far as I am con- cerned, I am willing to yield the floor for that purpose. Otherwise I should like to suggest the absence of a quorum. Mr. SALTONSTALL. Mr. President, wiil the Senator yield? Mr. McCARRAN. I yield, Mr. SALTONSTALL. Speaking in the position of the acting minority leader I should like to ask the majority leader what he proposes the Senate take up during the remainder of the afternoon wees  weeee| 33,000 Chinese Nationalist troops... sc... eeeewenee Total In action or definitely offered and | About 16,000 t100ps 2.222.222. eee neeeeme ee eemeene if the suggestion of the Senator from Nevada with respect to postponing con- sideration of the amendment providing aid for Spain until tomorrow is adopted? Mr. LUCAS If the suggestion of the able Senator from Nevada is adopted by the Senate, I presume that other amend- ments could be considered. Mr. HAYDEN. Section XB is ready for approval except for this amendment. Mr. LUCAS, Perhaps nothing would be left to do this afternoon so far as the appropriation bill is concerned. I under- stand only one more important amend- ment is to be voted on. The PRESIDING OFFICER. The Chair would call to the attention of the majority leader and the minority leader that chapter XT of the bill has not been acted upon. Mr. LUCAS. Is that the chapter in which the Senator from California is interested? Norwegian merchant — tonnage; amount unknown, perhaps 1 Damsh merchant ship, 20 Chinese C-47 transport4......-----.-- 1 Bghter squadron, More than e squad: run of ait transports Seruiseis, 2 carriers, 1 smaller com: bat ships, teveral merchant ships. The PRESIDING OFFICER. It is chapter XI, General Provisions—Depart- ments and Agencies. Mr. LUCAS. Under the unanimous- consent agreement we would be here at least until 7 o’clock if we consumed 3 hours before we would be able to vote on the amendment of the Senator from Nevada. Perhaps it would take until 71:30 or later. The Senator from Nevada is eager to have debate on the amend- ment go over until tomorrow. It is sat- isfactory to me if that is the will of the Senate. In the meantime we could take up the one remaining chapter in the appropriation bill. Mr. McKELLAR. Chapter XI, on page 462, is the remaining chapter. Mr, SALTONSTALL. I have talked with Senators on this side of the aisle who I know are interested in the amend- ment with respect to aid to Spain. So far as Ican determine, the suggestion of
11362 postponing the amendment until tomor- row is agreeable to them. I should like to have the majority leader indicate how we would proceed tomorrow if that were one. Mr. McCARRAN. I should like to make the suggestion, if I may. It has been announced by the Chair that the Prime Minister of Australia would ap- pear before the Senate tomorrow at a certain hour. As I recall, it will be at 2:15 or 2:30 o'clock. Perhaps it could be arranged that the amendment I pro- pose could come up following the ap- pearance of the Prime Minister of Aus- tralia. Such an arrangement would be very satisfactory to me. Mr. LUCAS. Does the Senator mean to have the amendment taken up imme- diately after the Senate convenes? Mr. McCARRAN. No. Mr. LUCAS. That would leave 2 free hours before the Prime Minister's visit. I do not know whether it would require 2 hours to finish the remainder of the appropriation bill before reaching any controversial amendments. I should not like to waste 2 hours. I wonder whether we could not use 2 hours, from 12 to 2, for debate, take time out for the reception to the Prime Minister of Aus- tralia, and finish with the amendment of the Senator from Nevada immediately following the Prime Minister's visit. Mr. McKELLAR. I hope very much we can finish consideration of the bill tomorrow. It has been before the Sen- ate for a long time, and we have nearly finished with it. I think we ought to make some arrangement for final action upon it. I want to help the Senator from Nevada in any way I can so that we may consider his amendment. At the same time, it is very important that this bill be sent to conference. Mr. LUCAS. I agree with the Sen- ator from Tennessee. We have been on the bill for a long time. The sooner we finish its consideration, the better I shall like it. Mr. McCARRAN. It is the desire of the Senator from Nevada to have the very best attendance possible in the Sen- ate when the matter covered by his amendment is presented. It is with that thought in mind that I believe it would be well to have it taken up after the appearance of the Prime Minister of Australia. I thought that with the Prime Minister’s appearance before the Senate a good attendance would be as- sured, and therefore we could go ahead with the presentation of our facts on the amendment. That is the reason for my suggestion. Mr. LUCAS. It seems to me—and I am only thinking out loud now—if we had 2 hours of debate, from 12 to 2 to- morrow, and immediately after the Prime Minister’s visit we had another short debate, that we would have more Senators in attendance than if we fol- lowed the suggestion of the Senator from Nevada to begin the consideration of his amendment after the Prime Minister's visit. Senators must go to committee meetings, and probably would leave the floor. However, I am satisfied that they would remain for an hour and a half if they knew the Senator’s amendment was to be voted on. CONGRESSIONAL RECORD—SENATE Mr. McCARRAN. The amendment must be voted on. The agreement is for its consideration for 3 hours today, the time to be divided between the Senator from Tennessee and the Senator from Nevada. We want to bring the matter up as expeditiously as possible and dis- pose of it as promptly as possible. Mr. BREWSTER. Mr. President, will the Senator yield? Mr. McCARRAN, I yield. Mr. BREWSTER. In the interest of accomplishing the expedition which the majority leader suggests I should like to suggest that we consider the amend- ment for an hour and a half preceding the Prime Minister’s visit and for an hour and a half following the Prime Minister’s visit. Perhaps some other matters could be taken up immediately after the Sen- ate convenes. Mr. LUCAS. Mr. President, the sug- gestion that an hour and a half before 2 o’clock, and an hour and a half after the Prime Minister finishes his address before the Senate be given to the amend- ment would be perfectly satisfactory to me. Mr. McKELLAR. Mr. President, would it be possible to agree on an hour when we could vote? Could we vote at 4 o'clock? Mr. McCARRAN, I do not believe it is going to be necessary to make an agree- ment such as that. I think that by not agreeing on an hour for a vote, we can save time. Ido not think the debate will take 3 hours, when we get to the subject. Mr. LUCAS. I do not think it will. Mr, McKELLAR. I entertain great hopes that we can dispose of the bill to- morrow, The PRESIDING OFFICER. The Chair calls the attention of the Senator from Nevada to the fact that his sug- gestion would require a modification of the present unanimous-consent agree- ment. Mr. McCARRAN. That is correct. Mr. WHERRY. Will the Senator from Nevada yield? Mr. McCARRAN. I yield. Mr. WHERRY. I desire to know whether it is contemplated that the Sen- ate will proceed with chapter XI, the general provisions of the bill, in the event we should reach that point in the bill before the distinguished majority leader desired to move a recess this eve- ning, Mr, LUCAS. That is what we were discussing when the Senator from Ne- braska entered the Chamber. If we postpone consideration of the amend- ment relating to Spain, and agree to consider it tomorrow, we will proceed with the appropriation bill, Mr. WHERRY. I am reluctant to go into chapter XI until there is a quroum call, at least. I am sure Senators desire to be present when chapter XI is con- sidered. Mr. McKELLAR, I hope the Senator will have a quorum called. Mr. WHERRY. Before the unani- mous-consent agreement is entered into, I should like to have a quorum called. Mr. McCARRAN. Let me see if we have a meeting of the minds on this mat- ter. When a recess or an adjournment is taken tonight it will be taken until 12 o’clock tomorrow, and we will then pro- ceed, after the preliminary matters which usually are taken up, to debate the amendment relating to Spain for an hour and a half. Then the Prime Min- ister from Australia is to be entertained before this body, and there will be an hour and a half of debate thereafter. Is that the general understanding? Mr. LUCAS. Yes. Mr. WHERRY. I am not at all ob- jecting to the provisions of the unani- mous-consent request, except that I was desirous of knowing how far in the bill the distinguished majority leader ex- pected to go before he moved a recess tonight. If it is contemplated that we are to take up the general provisions, chapter XI, I should like to have a quo- rum called before we enter into the agreement. Mr. McCARRAN. Before we do that, may I have unanimous consent to offer an amendment to the third chapter of the bill, which is the chapter covering the judicary appropriation? I hold in my hand a letter from the Chief Justice of the United States, and also a letter from Mr. Chandler, the Ad- ministrator of the courts, asking for an amendment to the bill regarding the ap- propriation for the Judiciary. Some years ago by law we placed ref- erees in bankruptcy on a salary basis. Theretofore they had been on a fee basis. For about 3 years now they have been on a salary basis. In order to furnish clerks for the referees in bankruptcy, the Chief Justice, as chairman of the Ju- dical Conference, and the Adminstrator, urge that we go back to the figure which the Budget sent to the Congress, but which was eliminated in the House, and the Senate went along with the House action. If I may have unanimous consent to go into that, I will present it. It will take only a minute. The PRESIDING OFFICER. The Chair is advised by the parliamentarian that it will be necesary first to modify the standing unanimous-consent agree- ment. Mr. McCARRAN. I believe that to be true. The PRESIDING OFFICER. After it is modified, it would be in order for the Senator from Nevada to make request for another unanimous-consent agreement respecting the item to which he has referred. Mr. CHAVEZ. Mr. President, if I may address an observation to the Sena- tor from Nebraska, I think it would ex- pedite what he wants to have done now if he would agree to the unanimous-con- sent agreement that we postpone con- sideration of the amendment of the Sen- ator from Nevada until tomorrow, and then proceed with a quorum call, and work for a while longer today. I think we could do that, if he would agree to the unanimous-consent agreement, Mr. WHERRY. I have no objection to the unanimous-consent agreement at all, but I should prefer to have a quorum called just before we enter into it. I do not think it will make any difference one way or the other, I am sure it will be agreed to, but I should like to have a quorum called.
1950 Mr. LUCAS. Mr President, I suggest the absence of a quorum. The PRESIDING OFFICER. The Clerk will call the roll, The roll was called, and the following Senators answered to their names: Anderson Gurney Malone Benton Hayden Martin Brewster Hendrickson Maybank Bricker Hickenlooper Morse Bridges Hill Mundt Butler Holland Murray Byrd Humphrey Myers Capehart Ives O’Conor Chapman Johnson, Colo O'Mahoney Chavez Johnson, Tex Pepper Connally Johnston, 8.C Robertson Cordon Kefauver Russell Douglas Kem Baltonstall Dworehak Kerr Smith, Maine Eastland Knowland Smith, N J, Ecton Langer Sparkman Ellender Leahy Stennis Ferguson Lehman Taft Flanders Lodge ‘Thomas, Okla Frear Lucas Thye Fulbright McCarran Tvdings George McClellan * Watkins Gillette McFarland Wheriy Graham McKellar Willlams Green Magnuson Young The PRESIDING OFFICER. A quorum is present The Senator from Nevada [Mr. Mc- CarRAN] is recognized. Mr. McCARRAN. My. President, I suggest that the majority leader present the request for modification of the unan- imous-consent agreement. Mr. LUCAS. Mr. President, in view of the fact that it is now 4:30 o'clock, and that under the previous unanimous- consent agreement the debate was to continue for not longer than 3 hours on the amendment dealing with Spain, after we have disposed of all the amend- ments on the chapter we have been con- sidering, I now modify the unanimous- consent request by making the follow- ing request: I ask unanimous consent of the Senate that on tomorrow, following the conven- ing of the Senate at 12 o’clock, we pro- ceed to debate the amendment involv- ing aid to Spain for 112 hours previous to 2 o’clock; that following the address by Prime Minister Menzies of Australia we then further debate the aid-to-Spain amendment for not longer than 12 hours, at the conclusion of which a vote be taken on the amendment; the time to be equally divided between the Sen- ator from Nevada [Mr. McCarran] and the Senator from Tennessee (Mr. Mc- KELiar]. The PRESIDING OFFICER. The Chair would like to ask the question: Is it the understanding of the Senator from Tilinois that under his proposed modifi- cation the debate would begin at 12:30 tomorrow and extend from 12:30 to 2 o'clock? Mr. LUCAS. Not necessarily. Any time between 12 and 2 the hour and one- half debate could take place. We will first transact morning business. The PRESIDING OFFICER. At what time would the debate begin? Mr. LUCAS. Following disposition of business during what we call the morn- ing hour. The PRESIDING OFFICER. At not later than 12:30. Mr. LUCAS. That is correct; not later than 12:30. I should like to in- clude also in the unanimous-consent re- CONGRESSIONAL RECORD—SENATE , quest the same provision that was in- cluded in the agreement previously en- tered into, that no amendment to the aid-to-Spain amendment shall be offered which is not germane; also that I am not waiving any points of order. The PRESIDING OFFICER. ‘The Senator would continue the same condi- tlons that were stated in the current unanimous-consent agreement? Mr. LUCAS. Yes. Mr. WHERRY. Mr. President, I should like to make an inquiry of the distinguished majority leader. Perhaps the Senate, if it continues consideration of the bill tonight may take up chapter XI, and proceed as far as it can with the remainder of the bill. It is the purpose of the majority leader to take a recess at 6 o'clock. Assume we had gotten into chapter XII, and had not completed ac- tion on that chapter tonight. I under- stand it is proposed, in such event, tem- porarily to lay consideration of that chapter aside, and the unanimous-con- sent agreement would apply then to the so-called aid-to-Spain amendment, in the foreign aid portion of the bill. I ask the .najority leader if it is his intention not only to vote on the aid-to-Spain amendment, but to complete the foreign aid chapter before the Senate returns to consideration of what would be the pend- ing business, which would be amend- ments in chapter XI, Is that correct? Mr. LUCAS. The Senator from Ne- braska is correct in his understanding of the situation. Mr. MAGNUSON. Mr. President, re- serving the right to object, there are two amendments to the bill which are of great importance to many Members of the Senate. I wanted the understanding that should we finish action on chapter XI tonight, and the bill were to be fin- ished, insofar as committee amendments are concerned, we could then bring up the two amendments tomorrow, after disposition of the Spanish aid amend- ment? Mr. LUCAS. As I understand, the amendments to be offered by the Senator from Washington are amendments which are to be offered to the bill after we have completed the committee amendments to the bill. Mr. MAGNUSON. Yes. Mr. LUCAS, After we have completed the committee amendments to the bill the amendments referred to by the Sen- ator from Washington are in the same category as any other amendments, and certainly the Senator from Washington would not be foreclosed from offering his amendments, Mr. WHERRY. Mr. President, I have no objection to the unanimous-consent request. The PRESIDING OFFICER. The oc- cupant of the chair will state that he is advised that chapter XI of the bill has not yet been taken up. The Senator from Illinois has requested unanimous consent to modify the current unani- mous-consent agreement upon which the Senate is operating, in the manner stated by him. Is there objection? Mr. CHAVEZ. Mr. President, reserv- ing the right to object, the chairman of the subcommittee handling chapter XI ig the Senator from Tennessee (Mr. Mc- 11363 Kerrar}, In that chapter appears seo- tion 1111, better known as the anti- deficiency provision. With reference to that provision, there are some Senators who purport to propose an amendment which deals with grants to the States for old-age pensions. We would not like to have the antideficiency provision apply to such grants, because after all it is the States who contribute, who are the de- termining factor in saying what shall be done. I wonder whether we will have sufficient time this evening, in consid- ering chapter XI, even to discuss that particular provision. Mr. LUCAS, Mr. President, as I un- derstand, the chairman of the Appro- priations Committee desires to proceed with chapter XI. We will probably con- tinue until 6 o’clock, and then take a recess until tomorrow. Mr. CHAVEZ. Chapter XI contains section 1111, dealing with the working funds. Section 1111 is the antideficiency provision, which is the controversial mat- ter of the chapter. The Senator from Alabama [Mr. H111], the Senator from New Hampshire (Mr. Brinogs], and I wish to offer an amendment to the anti- deficiency provision which would take care of the old-age pensioners within the individual States, and would make the antideficiency provision inapplicable to them. Mr. LUCAS. There is nothing to pre- vent the Senator from doing that. The PRESIDING OFFICER. Is there objection to the modification proposed by the Senator from Illinois (Mr. Lu- cas]? The Chair hears none, and the unanimous-consent agreement is en- tered into. Mr. LUCAS. Mr. President, before we begin on chapter XI, I should like to state that the Senate has been on this appropriation bill for weeks, and it seems to me we should be able to finish it not later than Wednesday. Tomorrow we Shall dispose of the amendment offered by the Senator from Nevada, and per- haps we can get through these two chap- ters. Certainly not later than Wednes- day we should be able to finish this bill. I am going to try to do so and, if neces- sary, we shall hold a night session on Wednesday in order to complete action on the bill. It is my understanding that by that time, the bill now being considered by the Banking and Currency Commitice, the measure involving the war effort, probably will be ready to be placed be- fore the Senate. Certainly we wish to handle that measure as quickly as pos- sible. Mr. WILLIAMS. Mr. President, will the Senator yield? Mr. LUCAS. I yield. Mr. WILLIAMS. I agree with the Senator that there is such an urgency, but I wonder why the Senator is plan- ning to have the Senate take a recess so early this afternoon. Mr. LUCAS, Mr. President, the Sen- ator from Delaware is trying to em- barrass me, as usual, when he rises to ask a question. I would just as soon stay here, and we are going to stay here this afternoon and proceed with chapter XI; we shall re- main here until 6 o’clock or a little later,
11364 which is about the time we have been staying in session right along. Of course, if I were to ask the Senate to remain in session until 9 o’clock in the evening, the Senator from Delaware or some other Senator would say, “Why do you keep us here so late? I had a dinner engagement, and I should he home with my family, instead of being here.” On the other hand, when I am willing to have the Senate end its ses- sion for the day at approximately 6 o'clock in the evening, I am pilloried for that. Of course, Mr. President, that is what one gets for being majority leader. However, I can take it, I think I under- stand my friend the Senator from Dela- ware fairly well. Mr. McCARRAN. Mr. President, I should like to discuss an amendment which i have, if I may have the floor in my own right. Mr. LUCAS. I yield the floor. Mr. McCARRAN. Mr. President, for expenses of referees, the budget estimate was in the amount of $1,035,400, and the House allowed $960,000. The amount au- thorized for this purpose last year was in the amount of $886,000, and the amount of increase granted by the House was for within-grade salary advance- ments and part-time personnel. No ad- ditional funds were allowed for addi- tional full-time positions. The Senate committee concurred in the recommen- dations of the House. I have now received evidence of the in- crease in bankruptcy cases. Chief Jus- tice Vinson has written to me, request- ing that the bill be amended to include the full amount of the budget estimate of $1,035,400. This would be an in- crease of $75,400. Myr. President, in view of this addi- tional evidence presented, I move that on page 103, line 11, the figure ‘‘$960,000” be stricken and the figure “$1,035,400” be inserted in lieu thereof. The PRESIDING OFFICER. The Chair calls attention to the fact that unanimous consent must be given in or- der to take up the amendment at this time. Does the Senator request such unanimous consent? Mr. McCARRAN. Mr. President, I think it would be clearer to ask such unanimous consent after I have made the motion. , I now ask unanimous consent that the letter from Mr. Chief Justice Vinson be read by the clerk. The reading of the letter will make this matter clearer. Mr. McKELLAR, Let me ask the Sen- ator just what he desires me to note. Mr. McCARRAN. In view of the addi- tional evidence presented and in view of the request made by the Chief Justice, I have moved that on page 103, in line 11, the figure “$960,000” be stricken out, and the figure “$1,035,400” be inserted in lieu thereof. If the Senator from Tennessee will per- mit the letter from the Chief Justice to be read, it will give enlightenment to the Senate. Mr. McKELLAR. I shall be very happy to have that done. Mr. McCARRAN. Mr. President, I now ask unanimous consemt that the clerk may read the letter from the Chief Jus- tice of the Supreme Court. CONGRESSIONAL RECORD—SENATE The PRESIDING OFFICER. Without objection, the clerk will read. The legislative clerk read as follows: Svurreme Court OF THE UNITED STATES, Washington, D. C., July 20, 1950, Hon. Par McCarran, Chairman, Appropriations Committee, United States Senate, Washington, D.C. My Dear Senator McCarran: As chairman of the Judicial Conference of the United States, I feel impelled to call your attention to an item in the general appropriation bill for 1951 (H. R. 7786) as reported to the Sen- ate from your committee. This item affects the eppropriation for the expenses of the referees in bankruptcy. You will recall that the legislation under which our present system was established was effective July 1, 1947. Inasmuch as the new bankruptcy system was to be on a self- sustaining basis and funds for its operation until such a financial condition should exist were necessary, the Congress authorized an advancement from the general funds of the Trearury in the amount of $500,000 to the expense funds of the referees. This fund contemplates expenditures incidental to pro- viding for necessary office space, clerical and other office assistance, supplies and equip- ment, travel, etc. As of June 30, 1950, there was a cash bal- anco on hand in the expense fund of $599,986, with a remainder unpaid of the $500,000 ad- vanced by the Treasury of $100,000. This leaves a net balance in the expense fund on the first day of the current fiscal year of $499,986. In addition to this net balance, there was a sum of 8623,376 paid into the general receipts fund of the Treasury by the clerk; of the various courts resulting from the clerks’ fee of $8 per filing of 77,922 cases. In the fiscal year next preceding the effec- tive date of the act (July 1, 1947) filings numbered 13,170; in the past ficcal year there were 38,391 filings, more than two and one- half times the filings in fiscal 1947; and for fiscal 1.51 it is estimated that there will be 7,000 more cases filed than in the past fiscal year, or a total of approximately 40,000 cases. If this estimate becomes a reality, there will be filed in the present fiscal year more than three times the number of cases filed in fis- cal year 1947, the year next preceding the establishment of the new system. I feel that I should add that Mr. Covey, who is the Chief of the Bankruptcy Division of the Admir.istrative Office of the United States Courts last January, estimated the filings for the past fiscal year to be 33,400; the actual number of Oilings was 33,391. I mention this to demonstrate the accuracy of the estimates for fiscal 1951. The Judicial Conference of the United States estimated that the total cost for the 84 additional full-time clerks in the referees’ offices needed to handle this increase in the volume of business would be $77,656, and this figure was included in the budget esti- mates. The House of Representatives Ap- propriations Committee reduced this item $75,400, and the bill came to the Senate with this reduction. If the Senate does not restore this amount, the referees will be seriously handicapped in the handling of this new busincss, These additional full- time employees will have a classification rat- ing of GS 2, with an entrance salary of $2,450 per annum under the existing salary structure. Naturally, I am interested in seeing an efficient and expeditious administration in the bankruptcy fleld. Not only will there be more respect for its administration if it is efficiently and expeditiously handled, but I feel certain that we will agree that bene- fits will accrue to the creditors by such han- Gling of these cases. The Referees’ Salary Act was signed by the President on June 28, 1946, and became effective July 1, 1947, so I have lived with the new system during its entire operation. JULY 31 The judicial conference has given particular attention to its operation, and takes some satisfaction out of the fact that it is one segment of governmental operation in which the intake is greater than the outgo and at the same time there has been an efficient and expeditious handling of an enormous case load. The receipts in the expense fund in the three fiscal years have exceeded the disburse- ments by 84€9,986. I certainly hope that you may feel in- clined toward further consideration of this item and that the sum of $75,400 will be added to this item in the bill. I feel that without this additional money, and the addi- tional personnel to be provided thereby, the efficiency of the system will be substantially affected. I know that neither you, your com- mittees nor the Congress would have any de- sire that such would be the result, Sincerely, Frep M. VINSON. Mr. McCARRAN. Mr. President, I now move the adoption of the amend- ment. ° The PRESIDING OFFICER. The Senator from Nevada requests unani- mous consent that the amendment be now considered, being an amendment on page 103, in line 11, to strike out “$960,- 000” and insert “$1,035,400.” Is there objection? Without objection, the amendment is considered and agreed to. Mr. McCARRAN. Mr. President, I ask unanimous consent that, in connec- tion with the amendment which has just been agreed to by the Senate, two let- ters from Henry P. Chandler, Director of the Administrative Office of the United States Courts, be printed in the Recorp in furtherance of the amendment just adopted. There being no objection, the letters were ordered to be printed in the Rrc- orD, as follows: ADMINISTRATIVE OFFICE OF THE Unirep STATES Courts, Washington, D. C., June 20, 1950. Mr. THomas J. Scott, Assistant Clerk of the Senate Appropriations Committee, United States Senate, Washington, D.C. Dear Mr. Scott: We have now reccived re- ports from all of the district courts regard- ing the number of new bankruptcy cases filed in May 1950. The total for the month is 3,266, which is a new high in the current trend of increased filings. It represents an increase of 423 cases over the preceding month, when 2,833 cases were filed, and an increase of 693 cases as compared with the month of May 1949, when 2,663 cases were filed. On a percentage basis the increase over April 1950 was 14.2 percent and over May of 1949, 27 percent. During the first 11 months of the fiecal year 1949, there were 23,491 cases filed. In the corresponding pe- riod of the current fiscal year, 30,326 cases were filed, an increase of 29.1 percent. Sincerely yours, Henry P. CHANDLER, ADMINISTRATIVE OFFICE OF THE UniTrep Srates Counts, Washington, D. C., May 31, 1950. Mr. THomas J. Scort, Assistant Clerk of the Senate Appropriations Committee, United States Senate, Washington, D.C. Dear Mr. Scorr: The reports received from the district courts disclose that a total of 2,883 bankruptcy cases were filed during the month of April. This is an increase of 11
1950 percent over the filings in the month of April 1849, when 2,544 cases were filed. There ‘were 20,928 cases filed in the first 10 months of the fiscal year 1049. During the corre- sponding period of the fiscal year 1950, 27,059 cases were filed, an increase of 29.3 percent. Sincerely yours, Henry P, CHANDLER. RErerezs In BANKRUPTCY Salartes patd from referces’ salary fund Offices served by single part-time ref- @ree 222 ee ne ene 109 Offices served by single full-time ref- OTRO 2 2w~ 2 -  e  e eee ee neneene 88 Offices served by two or more referees, consolidated offices (see below) ...... 1 Total offices........--.---------- 154 Consolidated offices Full-timo] Part-timo Location teferves | referees Birmingham.._....-...---.--...-+ Los Angeles (Dicksxon-Head) Los Angeles (Biink-Hunt)_. Chicago. Boston _. Detroit.......22.- Cleveland i Ue) 5) 16 1 Total part-time positions.....-....-.-. 110 Total full-time posttions....--..------- 54 Total authorized positions....... 164 Clerical staffs of referees’ offices Salaries paid from referees’ expense fund Offices having no clerks (vacancies) --... 6 Offices having single part-time clerk... 61 Offices having two part-time Clerks__--.. 1 Offices having single full-time clerk.._.. 28 Offices having one full-time and one part-time clerk... .--2. + 2 eee ene il Offices having two full-time clerks... 23 Offices having three and four clerks..... 17 Consolidated offices (see below) .-..-... q Total offices_.....-.-..--..-.---- 154 Consolidated offices , Number | Number Location of referees; of clerks Birmingham. .....-....-.-g---0.-- 2 ll Los Angeles (Dickson-Hoad) - 2 10 Los Angces (Brink-Hunt). - 2 10 “HICARO.. epee ne eee een een ene 4 15 Boston... ...- - 3 8 Detrolt. 2... eee eee eee 2 6 Cleveland... .--.. cn. sence snewees 2 6 Total... 2-0. -ncne ew neenee Vv 6 Mr. McCARRAN. Mr. President, I send forward an amendment to which I invite the attention of the Senator from Tennessee. I ask that it be read. The PRESIDING OFFICER. The clerk will state the amendment. The Cuizr Crerx. On page 89, be- tween lines 21 and 22, it is proposed to insert: Roads through public lands: For the sur- vey, construction, reconstruction, and main- tenance of main roads through unappro- priated or unreserved public lands, nontax- able Indian lands, or other Federal reserva- tions pursuant to authority contained in sec- tion 8 of the Federal Highway Act (42 Stat. 212), as amendeti by the act of June 24, 1980 (46 Stat. 805), the sum of $5,000,000, to re~ main available until expended: Provided, That such funds shall be available for ex- penditure on the basis of need, as deter~ mined by the Commissioner of Public Roads upon application of the highway depart- CONGRESSIONAL RECORD—SENATE ments of the respective States concerned and without regard to any law for the ap- pormonment of such funds among said tates. Mr. McCARRAN. Mr. President, I ask Unanimous consent that the amendment renal be taken up and considered at this me. The PRESIDING OFFICER. Is there objection to the request? Mr. SALTONSTALL. Mr. President, reserving the right to object, most re- spectfully, I may say to the Senator from Nevada that, as I understand, this amendment came from the subcommit- tee of the Committee on Public Works, of which he and I were members. Mr. McCARRAN. That is correct. Mr. SALTONSTALL. There is a pub- lic works authorization pending before the Senate. Mr. McCARRAN. Let me say to the Senator, before he goes further, that the amendment I have just sent forward and which has been read, came from the Committee on Public Works and was ap- proved, to be offered as an amendment to the pending bill. Mr. CHAVEZ. Mr. President—— Mr. McCARRAN. The chairman of the committee is now addressing the Chair, and I yield to him. Mr. CHAVEZ. I may say to the Sen- ator frcm Massachusetts and also to my good friend, the Senator from Nebraska, that the history of this amendment is this: The Committee on Public Works, under the sponsorship of the Senator from Utah [Mr. Watkins] and the Sen- ator from Oklahoma [Mr. Kerr], au- thorized this as an item in the regular road bill, Later on, the Senator from Utah appeared before the Committee on Appropriations in an effort to expe- dite the appropriation of the money au- thorized under the regular road _ bill, The only way it could be done was to have the Committee on Appropriations refer it to the Committee on Public Works, which committee in turn would refer it back to the Committee on Ap- propriations. Inasmuch as the Com- mittee on Public Works had already ap- proved the authorization, the only thing this does is that instead of waiting, as we did on the militgry money for the parkway road between here and Balti- more, the Senator from Utah [Mr. War- KINs} made a showing before our com- mittee that it possibly has something to do with the war effort, if we are to have a war. It was at the instance of the Senator from Utah, who made a proper showing, and at the insistence of the Senator from Oklahoma, that the Senator from Nevada eventually pro- posed the amendment. Mr. WHERRY. Why does this have to come up ahead of the general road bill? Mr. McCARRAN. There is one par- ticular reason, which I emphasize, namely, that in the State of Utah, first of all, there is what is known as High- way 6, which is a highway extending from the Atlantic to the Pacific. The only gap in Highway 6 that is not com- pleted is in the State of Utah, a stretch of about 48 miles. It is essential that this gap be closed now and the road con- structed, because Highway 40, carrying 11365 the greater bulk of the traffic, is about the only military road available to the military establishments around Salt Lake City and in the Utah Valley. Moreover, tf Highway 40 were put out of business, it would be a difficult mat- ter to get through Utah and to the Pa- cific coast. So it is essential that the 48-mile gap be completed at once. That is only ome. There are other gaps in other roads in other States. For example, the State of Oklahoma has one highway in which the Senator from Oklahoma [Mr. Krrar] is interested. My interest and the interest of the Senator from Utah is in the particular gap in Highway 6 to which I have made refer- ence. And if this is included in this bill, being a part of the highway appro- priation, which is carried in the pending bill, work can be begun on that road and completed at an early date. Mr. SALTONSTALL. Myr. President, will the Senator yield? Mr. McCARRAN. I yield. Mr. SALTONSTALL. Is the bill con- taining the authorization for the fiscal years 1952-53, in the amount of $550,- 000,000 for each year, before the Senate? Mr. McCARRAN. That bill is to come from the Committee on Public Works. Mr. SALTONSTALL. That is a new authorization bill. As I understand, it is coming from the Committee on Public Works, and this additional appropria- tion would add about $5,000,000 to the present 1961 authorization, and the Sen- ate would be asked then to appropriate that $5,000,000, to be expended for pub- lic roads this year, out of the 1951 appro- priations. Mr. CHAVEZ. That is exactly cor- rect. The bill for 1952-53 also contains some $13,000,000 for the parkway road. A showing was made before the com- mitlee that under the present circum- stances it was essential to proceed with the parkway road between here and Baltimore. It is connected with a new area outside Fort Meade, It was done as @ matter of military necessity, though that was not the only reason. For the Committee on Public Works now to re- port this item and have it referred to the Committee on Appropriations, would be the only possible way that it could be considered in connection with the ap- propriation bill in a manner parallel to that in connection with the parkway tem. Mr. SALTONSTALL. Mr. President, will the Senator yield further? Mr. McCARRAN. I yield. Mr. SALTONSTALL. Why {fs it not & question of including this item in an authorization bill, and allowing this amendment to come in as a supplemen- tal appropriation this year, and then having the Appropriations Committee consider how much to appropriate for it? Mr. McCARRAN. I may say to the Senator that, in connection with the bill on which we are now working, he and I were members of the subcommittee which dealt with the highway appropri- ation. That highway appropriation was for the current year, on which we are now going forward, 1950-51. If we can get provision made for this item, it will come under a specific law. Some years ago Congress passed a specific law with
11366 respect to a public highway to run ex- clusively through public domain, appro- priations then to be made for its con- struction. It is under that law that this appropriation was approved by the Com- mittee on Public Works. It is under that law that we are offering this amend- ment. Mr. SALTONSTALL. Mr. President, if the Senator will yield further, what bothers me in connection with this mat- ter is that as I remember, we cut down by some millions of dollars the appropri- ation for assistance to the States which was requested by the Public Roads Com- missioner, and this would add $5,000,000 and would penalize other States. Would it not penalize other States? Mr. McCARRAN, No. Mr. SALTONSTALL. But it would take something away from other States, and then add $5,000,000, would 1t not? Mr. McCARRAN. No; the Senator is in error. It does not penalize other States or take away anything from them. It comes under a special law which ap- plies directly, specifically, and exclu- sively to roads running through public domain, and that only. If the Senator will recall, Mr MacDon- ald, of the Bureau of Public Roads, came before the committee and testified that this was the way to get the money for the gap in Utah and for the other gaps which exist. On his testimony, the Senator from Utah [Mr. Watkins], the Senator from Nevada, and the Senator from Oxlahoma [Mr Kerr] took the matter to the Public Works Committee so that the committee might pass on the question, because that was the proper committee to deal with it. We want to go forward this year with this all- essential project so that these roads may be improved and put in condition because of the national situation. Mr. SALTONSTALL. Mr. President, will the Senator yield for one more question? Mr. McCARRAN. I yield. Mr. SALTONSTALL. The Senator's justification for this appropriation is that it is not a part of the Hayden-Cart- right bill, so-called, but is a completely separate bill? Mr. McCARRAN. A separate law. Mr. SALTONSTALL. And the Sena- tor believes the appropriation to com- plete the link should be made in full on this authorization, which is a separate authorization. Mr. McCARRAN. That is correct. Mr. CHAVEZ. Mr. President, if I may have the attention of the Senator from Massachusetts and the Senator from Nebraska for a moment, I have be- fore me House bill 7941, a road bill which is on the calendar and which will, we hope, be considered by this body very soon. Section 10 is the section which was sponsored by the Senator from Utah [Mr. Watkins], and the Senator from Oklahoma [Mr. Kerr), and which refers to this particular item. Section 10 reads as follows: Src. 10. For the purpose of carrying out the provisions of section 3 of the Federal Highway Act (42 Stat. 212), as amended by the act of June 24, 1980 (46 Stat. 805), there is hereby authorized to be appropriated for the survey, construction, reconstruction, and CONGRESSIONAL RECORD—SENATE maintenance of main roads through unap- propriated or unreserved public lands, none taxable Indian lands, or other Federal reser- vations the sum of $5,000,000 for the fiscal year ending July 30, 1951. So, Mr. President, all we are doing by this amendment is to provide for this particular item. Mr. WHERRY. I understand that, but the Senator is asking for $5,000,000. How many different sections of road are there which are not complete? If there is a State in the Union in which I would rather see a road built than in the State of Nebraska, it is the State of the distinguished Senator from New Mexico or the State of the distinguished Senator from Utah. I understand there are some incomplete roads in Oklahoma, and I should like to help the distinguished Senator from Oklahoma in that regard. What other units would be included in this $5,000,000? Mr. CHAVEZ. According to the in- formation furnished by the Bureau of Public Roads, which has chaige of the construction, planning, surveying, and all that goes with the construction of roads, the $5,000,000 will take care of connecting the roads which are in this particular category. Mr. WHERRY. Where are they lo- cated, other than in the States of Utah and Oklahoma? Mr. CHAVEZ. There are some in Oklahoma, in public parks; there are some in national parks; there are some in Indian lands, and possibly some in forests. There are some in New Mexico. There are probably some in every public- land State in the Union Mr. WHERRY. Will $5,000,000 take care of the situation? Mr. CHAVEZ. That is what we have been advised. I wish New Mexico were as lucky as is the State of Nebraska. Sixty-three per- cent of the entire area of my State be- longs to the Federal Government and not to the State of New Mexico. That is the reason why the law was passed. Mr. WHERRY. I am not quarreling with the basic law; but what the dis- tinguished Senator is doing is requesting an appropriation of $5,000,000, in addi- tion to the one for the present fiscal year. Did the question eftr go before the Ap- propriations Committee for a hearing? The PRESIDING OFFICER. The Chair would like to acquaint the Senate with the parliamentary situation. This amendment was offered on July 19 and referred to the Committee on Public Works. It was supported by the Senator from New Mexico {Mr, Cuavez] on July 28 and was referred to the Com- mittee on Appropriations. The matter comes under the purview of subsection 3 of rule XVI, which the Chair reads as follows: All amendments to general appropriation bills moved by direction of a standing or select committee of the Senate, proposing to increase an appropriation already contained in the bill, or to add new items of appro- priation, shall, at least 1 day before they are considered, be referred to the Committee on Appropriations, and when actually pro- posed to the bill no amendment proposing to increase the amount stated in such amend- ment shall be received; in like manner, amendments proposing new items of appro- JULY 31 priation to river and harbor bills, establish- ing post roads, or proposing new post roads, shall, before being considered, be referred to the Committee on Public Works. The Chair understands that this amendment was offered pursuant to sub- section 3 of rule XVI and has strictly complied in all respects therewith. Mr. WHERRY. I thank the Chair for the information, but I do not believe the Appropriations Committee ever heard testimony on the bill. It may have ata time when I was not present. The PRESIDING OFFICER. The Chaur invites attention to the fact that the rule requires that it be referred to the Committee on Appropriations at least 1 day before consideration. Mr WHERRY. I understand the au- thorization perfectly, but I do not recall that the amendment ever came before the Appropriations Commuttee for justi- fication. What we are doing is getting unanimous consent, after the authoriza- tion has been made, to bring the matter to the Senate floor and to appropriate $5,000,000 for building roads, without consideration by the Appropriations Committee. That ‘s the point I am rais- ing. Mr. CHAVEZ. Mr. President, I may say to the Senator from Nebraska that if we were startling originally with the Committee on Appropriations, the Sena- tor from Nebraska would be correct. But when the Senator from Utah and the Senator from Nevada took the matter up with the chairman of the Committee on Public Works I consulted the Parlia- mentarian I said, “How can this bill be handled for an appropriation?” He informed me of the parliamentary situation by which, if the amendment were referred to a standing committee which had charge of the authorization, the committee could report 1t adversely or favorably. That of itself would take care of the point of order that it would be legislation on an appropriation bill. That is what the Chair has tried to ex- plain to the Senator from Nebraska, Mr. McCARRAN. In no sense of the word is it legislation on an appropriation Il. Mr CHAVEZ Not at this time. Mr. WHERRY. Mr. President, I am not going to raise the point of order. But we are bypassing the Committee on Appropriations by coming straight to the floor of the Senate. I think that is the wrong way to obtain appropriations for road programs. If there is a military need, and there is a section of road which has to be constructed in order to get traffic through, if there is no other Mem- ber of the Senate who objects, I shall not offer an objection. But I think it is be- ing brought to the floor of the Senate without having the appropriation justi- fied in the committee, Many roads are authorized which are not built. Even though they are authorized, they still have to be justified for appropriation. Iam not going to object, Mr. President. It seems that I do most of the objecting. The Senate knows what it is doing. It is proposing to provide on the Senate floor an appropriation to the tune of $5,000,000. We are going to vote $5,000,- 000 worth of road construction. I be-
1950 Heve we would be establ shing a prece- dent. However, I shall not object. Mr. McCARRAN. The Senator is in error, Mr. WHERRY. I think it is the wrong way to legislate. Mr. McCARRAN. In my judgment the Senator is in error. This is not what the Senator claims it to be. This item is authorized by a statute which has been in existence for years. Mr. WHERRY. That is the basic law. Mr. McCARRAN. That is the basic law in accordance with which we are of- fering the amendment to the pending appropriation bill, Mr. WHERRY. Certainly. Mr. McCARRAN. The amendment is before the Senate. Any amendment can be offered. Mr. WHERRY. It has not been con- sidered by the Committee on Appropria- tions. Mr. McCARRAN It has been con- sidered by the committee. These [indi- cating] are the hearings which were held on the whole chapter. Mr. WHERRY. Was there a hearing on this $5,000,000 item for roads? Mr. McCARRAN. It came before the Subcommittee on the Department of Commerce Mr. WHERRY. It did not come be- fore the Committee on Appropriations. Mr. McCARRAN It came before the subcommittee. The Senator from Mas- sachusetts was present when we went in- to this whole matter. Mr. SALTONSTALL. I should like to state to the Senator from Nevada that he is correct in saying that this matter came before the subcommittee. I was not present. He is correct that it was heard by the subcommittee. However, I should like to call the Senator’s atten- tion to the fact that section 10 of the new Road Authorization Act, H. R. 7941, Cal- endar 2048, has not yet been considered. In section 10 of that bill the following provision appears: The sum of $5,000,000 for the fiscal year ending June 30, 1951, and a like sum for the fiscal year ending June 380, 1952, to remain available until expended Mr. McCARRAN. That $5,000,000 would not become effective until 1951-52, The bill to which the Senator refers be- comes effective in 1951-52. Mr. SALTONSTALL. There are two authorizations; one for the fiscal year ending June 30, 1951, and a like sum of $5,000,000 for the fiscal year ending June 30, 1952. Mr. McCARRAN. That money can- not be used until it is available, This amendment would put the money into the pending appropriation bill, After the appropriation bill was passed the money would be available, Mr. WHERRY. Mr. President, I should like to correct the record, I did not know this item had gone to the Com- mittee on Appropriations. I was speak- ing about the full committee. To my knowledge it never reached the Com- mittee on Appropriations. Mr, McCARRAN. I do not wish to mislead the Senator. I do not know whether this particular item was dealt with by the full Committee on Appro- CONGRESSIONAL RECORD—SENATE Priations. However, appropriations for roads came before the su ttee on the Department of Commerce, and we dealt with it in that subcommittee. Then we reported it to the full commit- tee and it was approved by the full com- mittee, Mr. SALTONSTALL. I do not say that my memory is correct, but I respect- fully suggest that it did not go quite that far. The matter was considered by the subcommittee, but was not approved by the subcommittee. Therefore, it did not come before the full committee for its consideration. In the subcommittee we decided to drop it. That is my mem- ory of it. I do not say that I am correct about it. Mr. McCARRAN. Again I do not wish to mislead the Senator. What I am trying to say is that the whole sub- ject matter was dealt with under chap- ter III, and we dealt with the whole subject matter of road construction for the year 1950-51 The matter is be- fore the Senate now. All we are trying to do now 1s to take that which has been approved by the Committee on Public Works and put it mto the 1950-51 appropriation. Mr SALTONSTALL. The authoriza- tion bill has not yet been approved by the Senate. It has heen approved by the Committee on Public Works, but not by the Senate. Mr McCARRAN. This amendment I have offered has been approved by the Committee on Public Works. Mr. SALTONSTALL But not by the Senate. Mr.McCARRAN. That is what we are trying to have done now. Mr, CHAVEZ That is what we are trying to have done. Mr. SALTONSTALL. Then I come back to my original statement. Assume that we cut the authorization bill The bill provides for $1,100,000,600 for 2 years. If we were to cut that amount by half or by a quarter, and appropriate this amount in full, we would be going ahead faster on this piece of road and being unfair to many States, because the contributions to those States would be reduced Mr. McCARRAN. It does not affect the other States at all. It is not money which is distributed among the States. It is money that goes directly under a specific law to highways which run through public domain exclusively. Mr, SALTONSTALL. Mr. President, will the Senator yield further? Mr. McCARRAN. I yield. Mr. SALTONSTALL. Supposing Con- gress authorized $300,000,000—merely by way of using a figure—instead of $550,- 000,000. The contributions to the States would be cut by $250,000,000. At the same time we would be going ahead with the full $5,000,000 on this piece of road in the State of Utah. Mr. WATKINS. Mr. President, will the Senator yield? Mr. McCARRAN. I yield. Mr. WATKINS. I am very much in- terested in the colloquy on this particu- lar amendment. The situation in Uteh ts one ‘of national concern. We have only one highway running out of Utah to the West, to California and Nevada. 11367 We have another one running almost due north and south to southern Utah, south- ern Nevada, and southern California. In and around Odgen, Utah, we have Hill Field, army stores, naval stores, and & naval depot. We have other military stores at Tooele We have the Geneva steel plant, which is just south of Salt Lake City. Highway No 40, which runs west into Nevada, is the only road which has been completed all the way through. That carried the big burden during the last war, as a result of which it has been ripped to pieces. We are trying to re- pair it and put it back into condition. Highway No. 6 runs from Provincetown, Mass., to Long Beach, Calif., and it 1s an improved highway all the way except for about 47 miles in western Utah near the Nevada border. Nevada has built a road to the border. It built an improved highway to the border, and this 47 miles of road is unimproved. That road runs entirely through public domain, and it comes up under a hardship situation. In a time such as we are now facing, the road is an absolute necessity from the national point of view, not from the standpoint of Utah or for the sake of Utah. Utah can ect along for a while longer, if it must, without it. Mr. WHERRY. What is the objection to bringing it up in the regular road bill? The Senate will be here next week Mr. WATKINS. We have had some experience during a war with getting roads built and getting other public im- provément taken care of. The contrac- tors are ready to do this piece of work, and they can undertake its construction. Ii it can be done now it can be done cheaper than it could be done dur- ing an emergency. Now is the time to do it, if we can get the appropriation. Mr. SALTONSTALL. Mr President, will the Senator yield? Mr. McCARRAN. I yield. Mr. SALTONSTALL. Personally, I have no objection to this appropriation going through at this time, providing the Senator from Nevada will accept an amendment to the effect that if the au- thorization is reduced this amount, even though it would not come within the au- thorization bill, being an exception to it, would likewise be reduced in the same proportionate amount. Mr. McCARRAN. That is agreeable to me. I am willing to accept such an amendment. Mr SALTONSTALL. Would the Sen- ator object to including such proper lan- guage within his amendment” Mr. McCARRAN. In other words, if there is to be a cut made all the way through the bill, this item shall be sub- jected to the same cut. Mr. SALTONSTALL. I refer to the au- thorization in the road bill. Mr. McCARRAN. I agree to that. Mr. CHAVEZ. The bill contains spe- cific language by which the President is directed in time of emergency, notwith- standing that he already has such au- thority, to cut it as much as he wants to cut it in order to meet the national emergency. Mr. McCARRAN. I am entirely con- tent with the suggestion of the Senator from Massachusetts.
11368 Mr. WHERRY. Mr. President, a while ago I asked the distinguished Senator from Nevada to yield so that I might cor- rect the Recorp, but after hearing the discussion I do not think I need to cor- rect it. I believe I was right in the first place. Mr SALTONSTALL. Mr President, I would, then, offer a second proviso to the Senator’s amendment, which, 1n sub- stance, would state that if the authori- zation contained in H. R. 7941, Calendar No. 2048, is reduced for the fiscal years 1952 and 1953, then the appropriation involved in the pending amendment for the fiscal year ending June 30, 1951, will be reduced in the same percentage. Mr. McCARRAN. I accept that, if the Senator from Utah will accept it. Mr. WATKINS Mr. President, I am willing to accept that percentage reduc- tion if the reduction referred to by the Senator from Massachusetts takes place. The PRESIDING OFFICER If the Chair may state the situation, the Sena- tor from Nevada has asked unanimous consent for the consideration of this item at this time Is unanimous consent granted? Mr WILLIAMS. Mr. President, I am going to ask that this amendment go over until tomorrow, so that I may have a chance to study it further The PRESIDING OFFICER. The Senator objects at this time, does he? Mr. WILLIAMS. I do The PRESIDING OFFICER. The Sen- ator from Delaware objects. ° Mr. CHAVEZ. Mr. President, on be- half of myself, the Senator from Ala- bama (Mr. Hitu!, the Senator from New Hampshire [Mr. BripcEs], and the Sena- tor from Wyoming |Mr. O’MaHoney], I ask unanimous consent at this time to propose an amendment to chapter XI of the pending bill, and I ask that it be considered now. I do not believe there will be any objection to it whatsoever after the amendment 1s explained. It has to do with the antideficiency provi- sion of section 1111 of the pending ap- propriation bill. The PRESIDING OFFICER. The Chair calls the attention of the Senator from New Mexico to the fact that under the agreement entered into a short time ago chapter XI is now the subject before the Senate for consideration. Mr. CHAVEZ. Yes; and the reason why I suggest this amendment is that the provision which will be concerned with the suggested amendment is the important provision of chapter XI, and I thought possibly we could get unani- mous consent to act on the amendment now. The FRESIDING OFFICER. The Senator from New Mexico asks unani- mous consent that section 1111, chapter XI, page 468, be now considered. Is there objection? Mr. McFARLAND. Mr, President, I suggest that unanimous consent is not necessary, if we proceed with chapter XI, There is no committee amendment be- fore the place suggested for the amend- ment, The PRESIDING OFFICER. The Chair is advised that the first amend- ment which would come up for consid. CONGRESSIONAL RECORD—SENATE eration in chapter XI is on page 468 of the bill. The clerk will state the amend- ment. The Learsiative Cierk. Under the heading “Departments and agencies,” page 468, line 25, after the word “‘obloga- tion”, it 1s proposed to insert the words “or expenditure ” The amendment was agreed to. JOINT SENATE AND HOUSE RECORDING FACILITY—CONFERENCE REPORT Mr BYRD obtained the floor. The PRESIDING OFFICER. May the Chair ask the Senator from Virgima whether his remarks will take come lit- tle time? Mr. BYRD. About 5 minutes. The PRESIDING OFFICER. The Senator from Connecticut |Mr. Benton] has a conference report, and the Chair had agreed to recognize him to precent it when the pending question was dis- posed of. Will the Senator yield for that purpose? Mr. BYRD IT yield. Mr BENTON. Mr. President, I am grateful to the Senator, because I called the junior Senator from South Dakota {Mr Muwpt] away from his office while I submitted this conference report I submit a conference report on the joint resolution (H J. Res. 332) provid- ing for the establishment of a Joint Sen- ate and Houce Recording Facility, and I ask unanimous consent for its present consideration The PRESIDING OFFICER. The report will be read for the information of the Senate The legislative clerk read the report, as follows: The committee of conference on the dis- agreeing votes of the two Houses on the umendment of the Senate to the joint reso- lution (H J Res 332) providing for the estahlishment of a Joint Senate and House Recording Faculty, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the House recede from its disagree- ment to the amendment of the Senate and agree to the same with an amendment as follows. In lieu of the matter proposed to be inserted by the Senate amendment insert the following: “That (a) there is hereby established a Joint Senate and House Recording Facility (hercinafter referred to as the ‘Facility’). “(b) The Facility shall assist Members of the Senate and House of Representatives in making and utilizing disk, film, and tape recordings, and shall maintain and operate upon request a supplementary public address system for the convenience of the Senate and the House (including any committee of either House of Congress, and any joint com- mittee). The recording faciiities shall be for the convenience of the Members of the Sen- ate and House of Representatives “(c) The Secretary of the Senate and the Clerk of the House of Representatives are hereby authorized, subject to appropriations made therefor, to appoint and fix the com- pensation of a Superintendent and such other employees as are deemed necessary to perform the functions of the Facility, and shall, subject to the approval of the Senate Committee on Rules and Administration, and the House Cammittee on House Admin- istration promulgate such regulations as may be necessary to carry out the purpose of this joint resolution. The Coordinator and the employees of the Joint Recording Facility of JULY 81 Congress (appointed pursuant to the Legts- lative Branch Appropriation Act, 1948) shall continue in office until a Superintendent is appointed. “(d) The Superintendent shall, subject to regulations promulgated under subsection (c), set the price of all recordings, services, and public address system rentals, and shall collect all moneys due the Facility. All pur- chase orders of more than $100 shall, before they are issued by the Superintendent, be approved by the Clerk of the House. The Superintendent shall maintain detailed rece ords of al] moneys collected, deposited, and expended, and shall file quarterly reports thereof with the Secretary of the Senate and the Clerk of the House Such records shall be audited annually, or at such lesser inter- vals as may be provided in regulations pro- mulgated under subsection (c) “(e) The Superintendent shall give bond to the Clerk of the House with one or more sureties Such bond shall be approved by the Secretary of the Senate and the Clerk of the House, and shall be in the penal sum of 820,000, with condition for the faithful performance of the functions of the Superin- tendent and for the preservation and secu- rity of all propeity in his care. “(t) There is hereby established within the contingent fund of the House of Repre- sentatives a revolving fund for the Facility, All balances of the Joint Recording Facility of Congress (estnblished pursuant to the Legislative Branch Appropriation Act, 1948) on hand c1 the date of enactment of this joint resolution, and ull moneys hercafter received from any source by the Facility es- tablished under subsection (a), shall be de- posited in such revolving fund The moneys in such revolving fund shall be available only for disbursement by the Clerk of the House for the care, maintenance, and operation of the Facility (including the purchase, rental, repair, upkeep, and insurance of such equip- ment and such other property as may be necessary for the operation of the Facility), upon vouchers signed by the Clerk of the House and approved by the chairman of the House Committee on House Administration; except that no such moneys shall be dis- bursed for the payment of salaries. “(g) The Clerk of the House igs hereby authorized to disburse from such revolving fund for the purchase of the recording equip- ment and other property which is now being leased by the Secretary of the Senate and the Clerk of the House pursuant to an agreement dated August 1, 1947, such amount (not less than 613,000 nor more than $15,000) as the Senate Committee on Rules and Administra- tion and the House Committce on House Ad- ministration may determine to be fair and equitable ” And the Senate agree to the same. WILLIAM = BENTON, G M GILLETTE. Karu E Munoz, Managers on the Part of the Senate, Mary T. Norton, THOos. B STANLEY, C W. BisHop, Ifanagers on the Part of the House, The PRESIDING OFFICER. Is there objection to the present consideration of the report? There being no objection, the report was considered and agreed to, PROPOSED GRANT OF EMERGENCY POWERS TO PRESIDENT Mr. BYRD. Mr. President, Mr. Ba- ruch has very admirably performed a great patriotic service in his testimony before the Senate Committee on Bank- ing and Currency. In all of his distin- guished career, he has never received a greater tribute than the national re-
1950 sponse to his plan for mobilization of our industrial economy. I am inherently opposed to unneces- sary governmental regimentation, which, if incompetently administered over a long period, can do much to destroy our system of free enterprise. I have, how- ever, reached the conclusion that I will support stand-by powers to be given to the President, especially for such con- trols as will prevent disastrous inflation and prepare this Nation for the worst that may follow the crisis in Korea. This means I will support such legisla- tion to be made effective upon procla- mation of the President. I do so, however, with an amendment, which I am offering today to the pending legislation, providing that such powers as are given to the President will expire on July 1, 1951. I offer this amendment because I do not believe such vast pow- ers should be conferred on any Execu- tive for an indefinite period without spe- cific review by Congress. Without an expiration date, the President could veto repeal legislation. It would then re- quire a two-thirds vote in each House to overcome such a veto. It is by such all-inclusive powers given in time of emergency that democracies are destroyed if the powers extend be- yond the period of the actual emergency. If an expiration date is provided in the legislation, it gives Congress an oppor- tunity prior to the expiration date to reconsider the situation in the light of developments and determine whether the powers should be renewed or discon- tinued. Let us not fool ourselves about this grant of power. If adopted, it will vest in the hands of the President powers more vast than any President ever had without a declaration of war. Under these powers the President can virtually take control of the domestic economy of our Nation and ke an economic dictator. One other exception I want to make is that if prices are fixed wages likewise should be fixed. All of us recall that in the last war prices were fixed without adequate wage control. Wages consti- tute 80 or 90 percent of the cost of most articles, and there must be adequate wage control if prices of products—in- dustrial and agricultural—are to be controlled. We are forced to proper controls now because blunders have precipitated this Nation into one of the most dangerous situations ever to confront us. Today we are fighting an undeclared war in Korea because the South Koreans, who were armed by us and trained by our officers, were unable to repel the North Korean invasion, The same kind of undeclared war can occur in other places through- out the world where we have undertaken to arm and train other nations who may or may not fight when D-day comes. Russia could start these undeclared wars in various parts of the world without firing a Russian gun or losing a Russian solder, compelling us under the Truman doctrine, to send troops, with the result that we may be engaged in many con- flicts of such a character thousands of miles apart. It is tragic to contemplate the results of such side-line wars. CONGRESSIONAL RECORD—SENATE To point out the utter stupidity and the unbelievable ineptitude of our actions with respect to the Korean conflict, I cite these instances: On June 13, 1950, just 2 weeks before the invasion of South Korea, Mr. William C. Foster, Deputy Administrator of the Economic Cooperation Administration, testified before the Senate Appropria- tions Committee and said: I am happy to tell the Appropriations Committee that, in my Judgment, the trend of events in South Korea 1s more favorable than it has been at any time since the liberation of that country in 1945. The rea- sons for optimism are military, political, and economic. It is my considered opinion that in the face of great difficulty the Govern- ment of the Republic of Korea is now steadily gaining strength in each of these three sec- tors. (1) A rigorous training program has built up a well-disciplined army of 100,000 soldiers, one that is prepared to meet any challenge by North Korean forces, and one that has cleaned out the guerrilla bands in South Korea in one area after another. Twelve days later the North Koreans invaded South Korea and, with virtually no effort or resistance, captured a large part of the country. Had the South Koreans, who, Mr. Foster said, had a well-disciplined army of 100,000 soldiers prepared to meet any challenge by North Korean forces, courageously resisted, our reinforcements would have been spared the tremendous casualties which have resulted from lack of time to prepare an expeditionary force. At the proper time it will be appro- priate for Congress to investigate upon what grounds Mr. Foster, the Deputy Administrator of the Economic Coopera- tion Administration, made this state- ment, and why the South Koreans in the first days of the invasion failed to resist. I call attention further to the fact that since the American occupation forces were taken from Korea, there has been a substantial military mission there to train the South Korean army. Still further, Gen. William L. Roberts, head of the United States Military Com- mission to Korea, told a news conference a few days ago that the South Koreans were not adequately armed because our leaders feared they would attack North Korea and thereby embarrass the United States. He said: The South Koreans helieved the best method was to attack. To prevent them from attacking we gave them no combat air force, no tanks, and no heavy artillery. So we have two American leaders, one, Mr. Foster, who said the South Korean army was well trained and equipped and prepared to meet any challenge; the other, the head of the United States Mili- tary Commission, who said America did not adequately equip the South Koreans because they might attack the North Koreans. It is just such contradictions and in- competence as this that have precipi- tated a crisis of great magnitude. In due time those responsible will be held ac- countable by the verdict of American public opinion. What we have done in Korea is to demonstrate the ineffective- ness of that part of the Truman doctrine in the protection of small or isolated na- 11369 tions by arming those who are not pre- pared or willing to fight when the issue comes, and thereby accepting on the part of the United States a commitment to fight such wars wherever and when- ever they may occur. I repeat, a dozen sideline wars may occur without Russia showing her hand. Since the end of World War II we have spent hundreds of millions of dollars in South Korea for relief, occupation and military training. In addition we have transferred great quantities of military equipment, which has not been eval- uated. The war that Russia is conduct- ing against America is a war of economic attrition. We have walked into her trap. We have committed ourselves to be in- volved in civil wars throughout the world and to exhaust our resources, regiment and tax our people while Russia can, and I believe will, remain on the outside. The free-enterprise system cannot long operate under drastic police con- trols inefficiently administered. A de- mocracy cannot remain on a war basis for a long period of time and still pre- serve the stimuli of free enterprise and fiscal solvency. But today we are faced with facts. We have been driven into a situation in Korea from which we must not retreat, but in all prudence we must consider the possibility, if not the probability, that similar wars will be started elsewhere. It is for these compelling reasons that I will vote for the Baruch proposals for stand-by power to the President, limited to July 1, 1951. This does not mean, of course, that Congress cannot renew these powers, but such dictatorial economic power over the lives of our citizens should be subject to review by Congress at stated periods. We are in another emergency which is developing some of the aspects of hys- teria, and we hear much about huge new taxes, about all-out regimentation, huge additional expenditures, but we hear lit- tle about a reduction in nondefense spending. Reduction of nondefense spending should be placed No. 1 on our mobilization program. Financial pre- paredness is the source of all prepared- ness, Mr. President, I offer the amendment, to lie on the table and to be considered when the proposed legislation comes be- fore the Senate. The PRESIDING OFFICER. The amendment will be received, printed, and lie on the table. GENERAL APPROPRIATIONS, 1951 The Senate resumed the consideration of the bill (H. R. 7786) making appro- priations for the support of the Govern- ment for the fiscal year ending June 30, 1951, and for other purposes. The PRESIDING OFFICER. The Senator from New Mexico has requested unanimous consent to take up at this time for immediate consideration an amendment to section 1111 on page 468 of the bill. Is there objection? The Chair hears none. Will the Senator offer his amendment? Mr. CHAVEZ. Mr. President, on be- half of the Senator from Alabama [Mr. Hri1], the Senator from New Hampshire
11370 {Mr. Brioces], the Senator from Wyo- ming [Mr. O’Mauoney] and myself I offer the amendment which I ask to have stated. The PRESIDING OFFICER. The amendment will be stated. The Cuter Cierx. On page 473, after line 23, it is proposed to insert: (5) grants to the States under title I, IV, or X of the Social Security Act, or under any other public assistance title in such act, Mr. HILL. Mr. President, this amend- ment would make definite and certain, in a@ way which I think the House language perhaps dees not, that the Federal con- tributions to the States for old-age as- sistance, for the blind, and for dependent children, will not be subject to any find- ing or determination or any action by the Director of the Bureau of the Budget, but that such contributions, being fixed specifically by statute, by statutory for- mulas, will be paid to the States in the future just as they have been paid in the ast. P Mr. SALTONSTALL. Mr. President, will the Senator yield? Mr. HILL. I yield. Mr. SALTONSTALL. In_ substance the amendment provides that where Fed- eral statutes guarantee that the Federal Government will match certain funds for old-age assistance, and matters of that character, such as mothers’ aid, and health matters, the antideficiency pro- vision shall not apply? Mr. HILL. No; it simply applies to the three categories, of old-age assistance, dependent children, and the blind. But it says where there is a statutory com- mitment to the States, where the amounts are fixed and determined by statutory formulas, such commitments will be met, and shall not be subject to any finding or any determination by the Director of the Bureau of the Budget. Mr. SALTONSTALL. Mr. President, will the Senator again yield? Mr. HILL. I yield. Mr. SALTONSTALL. As one who was on the other end of the stick for some time in the capacity of Governor, and because of the uncertainty of the Fed- eral appropriations, not always knowing what we should do in the States, I should say that I certainly approve of the amendment. Mr. McKELLAR. Myr. President, will the Senator yield? Mr. HILL. I yield to the distin- guished chairman of the committee, the Senator from Tennessee |[Mr. McKeE.- LAR], Mr. McKELLAR. I have no objection to the adoption of the amendment and to taking it to conference. I have not gone into it yet, and will have to go into it and see what it would do, but I shall be glad to study it. The amendment is certainly very praiseworthy in its pur- pose. It seems to me at first blush it should be adopted, But before finally agreeing to it, I should like to look at it. Mr. HILL. I thank the Senator. The PRESIDING OFFICER. The question is on agreeing to the amend- ment offered by the Senator from New Mexico |[Mr. Cuavez] for himself and other Senators on page 473, after line 23. The amendment was agreed to. CONGRESSIONAL RECORD—SENATE The PRESIDING OFFICER. The next amendment of the committee will be stated. The next amendment was, under the heading “Chapter XI—General provi- sions,” on page 469, line 13, after the word “in”, to strike out “requirements”, and insert “requirements or”; and in line 14, after the word “operations”, to strike out the comma and “or other de- velopments’”’, The amendment was agreed to. The next amendment was, on page 473, line 7, after “(f)”, to insert “(1)”; and in line 9, after the word “apportion- ments”, to insert “trust funds and work- ing funds expenditures from which have no significant effect on the financial operations of the Government, working capital and revolving funds established for intragovernmental operations.” The amendment was agreed to. The next amendment was, on page 473, after line 23, to strike out: (5) contingent expenses of the Senate or of the House of Representatives. The amendment was agreed to, Mr. SALTONSTALL. Mr. President, let me ask the Senator from Alabama whether the figure “(5)” in line 24 should not be included in order to cover his amendment. That is on page 473. The PRESIDING OFFICER. The fig- ure “(5)” is included in the amendment adopted a few minutes ago. Mr. HILL. Yes; it is included in that amendment. Mr. SALTONSTALL. Very well. The PRESIDING OFFICER. The next amendment of the committee will be stated. The next amendment was, at the top of page 474, to insert: (2) The provisions of subsection (c) of this section shall not apply to appropriations to the Senate or House of Representatives or to any Member, committee, Office (including the office of the Architect of the Capitol), officer, or employee thereof. The amendment was agreed to. The next amendment was, on page 474, line 15, after the word “any”, to strike out “other”; in line 17, after the word “obligations”, to insert “or ex- penditures”; and in line 21, after the word “obligation”, to insert “or the mak- ing of any expenditure’. The amendment was agreed to. ™he next amendment was, on page 474, line 24, after the word “obligation”, to insert “or make any expenditure”, The amendment was agreed to. The next amendment was, on page 475, line 23, after the word “act”, to in- sert “including the government of the District of Columbia”; and on page 476, line 1, after the word “on”, to strike out “December 31, 1950” and insert “June 30, 1951”. The amendment was agreed to. Mr. GURNEY. Mr. President, I under- stand we are now considering section 1112, beginning on page 475. The PRESIDING OFFICER. That is correct. We have just adopted a com- mittee amendment at the top of page 476 in that section. Mr. GURNEY. Mr. President, I have at the desk an amendment to that cec- tion, and I offer it at this time. JULY 31 The PRESIDING OFFICER. Unani- mous consent is required in order to have the amendment considered at this time. Mr. GURNEY. Mr. President, I ask unanimous consent that I may offer the amendment for consideration at this time. This section deals with annual leave, and places a limitation on the amount of leave which can be accumulated. My amendment will take care of paying for annual leave when a civilian employee of the Government goes into the armed services, The PRESIDING OFFICER. Is there objection to the present consideration of the amendment? Mr. McKELLAR. Mr. President, re- serving the right to object, let me say that I have not had time to go over the amendment. However, I shall be glad to let it go into the bill at this time, and very carefully examine it and consider it in conference. Mr. GURNEY. I may say that I have taken up the amendment with the staff of the Appropriations Committee. Iam very sorry that I did not have the idea at the time when this section was being considered by the Appropriations Com- mittee. However, at that time the Ko- rean situation had not developed. I should like to have the Members of the Senate now present hear the amend- ment stated, if that may be done. The PRESIDING OFFICER. Without objection, the amendment will be stated. The Cuter CierK. On page 475, in line 25, before the word “officer”, it is proposed to insert “civilian”. On page 476, before the period in line 4, it is proposed to insert a colon and the following: “And provided further, That this section shall not apply with respect to the payment of compensation for ac- cumulated annual leave in the case of officers or employees who leave their civilian positions for the purpose of en- tering upon active military or naval serv- ice in the Armed Forces of the United States,” Mr. GURNEY. Mr. President, I move the adoption of the amendment. Mr. BRIDGES. Mr. President, will the Senator briefly explain the purpose of the amendment and what is intended to be accomplished by it? Mr. GURNEY. Mr. President, the section as reported by the committee limits the amount of annual leave which can be accumulated. If a civilian em- ployee of the Government leaves that service to enter the armed services, then, as I would have the section written, it would allow such a civilian employee to be paid, before he enters the armed serv- ices, for the amount of leave he has ac- cumulated. Mr. BRIDGES. That would be done in view of the fact that he would not be able to take the leave, Is that correct? Mr. GURNEY. That is correct. The amendment would give such employee the money before he enters the armed services. Mr. McKELLAR, What would be the cost of putting the amendment into ef- fect? Mr. GURNEY. I do not know, and I do not think anyone can tell, because I
1950 do not believe anyone can say how many civilian employees of the Government will enter the armed services. However, I know that if a person enters any branch of the armed services, he has many extra financial obligations. If he enters the armed services, he will not have time in which to take annual leave. I know such a person would like to leave a little money at home, and I be- lieve that the Government wants to pay him in cash for leave he cannot take under such circumstances. Mr.CORDON. Mr. President, will the Senator yield? Mr. GURNEY. I yield. Mr. CORDON. Let me ask the Sen- ator if he has considered whether the language used in his amendment would permit 6 civilian employee simply to fail to take his leave during the period men- tioned in the amendment—that is to say, up to the middle of next year, and per- haps go into the next year, as well—and then at the time when he entered the armed services, be purged of any obliga- tion which would rest upon others, It seems to me the language of the amendment is broad enough to permit that to be done. I shall not object to the amendment, but I hope it will be care- fully considered in conference, and I hope there is included in the amend- ment language which will effectuate the purpose as outlined by the Senator. Mr. McKELLAR. Mr. President, let me say that we shall carefully consider it in the conference. Mr. GURNEY. Mr. President, the purpose 1s not to give the privilege the Senator from Oregon has mentioned, but only to permit the payment of accumu- lated leave in case such a person joins the armed services at any time between now and June 30, 1951, Mr. McFARLAND. Mr. President, what is the amount of accumulated leave which such a person might have? Mr. GURNEY. Whatever is now pro- viled under Federal law in that respect, I believe it is either 60 or 90 days. Mr. McFARLAND. Mr. President, I think the amendment is a worthy one. I think accumulated leave should be paid for under such circumstances. I think a person in that situation will need the money, The PRESIDING OFFICER. Is there objection to the present consideration of the amendment of the Senator from South Dakota? Without objection, te amendment is considered and agreed to. The next amendment of the commit- tee will be stated. The next amendment was, on page 476, after line 20, to strike out: Sxce, 1114. No part of any appropriation contained in this act shall be used to pay the compensation of any incumbent appointed to any civil office or position under the United States Government which may be- come vacant during the Oacal year beginning on July 1, 1960: Provided, That this inhibi- tion shall not apply— (a) to not to exceed 10 percent of all such vacancies in any agency caused by separa- tion from such agency, (b) to positions filled from within the agency, CONGRESSIONAL RECORD—SENATE (c) to offices or positions required by law to be filled by appointment of the President by and with the advice and consent of the Senate, (da) to scientific and technical positions in the Atomic Energy Commission and the Armed Services, (e) to nurses, doctors, or other medical personnel, including orderlies, in the Public Health Service and the Veterans’ Adminis- tration, (f) to law enforcement officers, (g) to temporary, emergency, seasonal, or cooperative positions, (h) to commissioned, commissioned war- rant, warrant, and enlisted personnel, and eadets of the Coast Guard, and the under- graduates of the United States Military and Naval Academies, or (1) to any agency in the legislative or ju- dictal branches of the Government, or the municipal government of the District of Co- lumbie. Mr. BYRD. Mr. President, there is at the desk an amendment which I should like to call up for consideration. The amendment is proposed by the Senator from New Hampshire (Mr. Bripcrs] for himself and 35 other Senators. I wish to call it up at this time, with the fol- lowing modification: At the bottom of the first page, instead of the words “in leu of the matter proposed to be strick- en out on pages 444, 445, and 446,” in- sert “in leu of the matter proposed to be Stricken out on pages 476 and 477.” Mr. McKELLAR. Mr. President, I should hke to call the Senator's atten- tion to the fact that this is not the prop- er time to take up that amendment, at this point in the bill. That amendment comes in chapter X. Mr. BYRD. However, I am offering it to this section, The PRESIDING OFFICER. The Senator from Virginia has offered the amendment heretofore prepared to chapter X of the bill; and it is now of- fered as an amendment to section 1114, beginning on page 476. Mr. BYRD. Mr. President, certain technical changes will be necessary in order to change the chapter numbers appearing on pages 2, 3, and 4 of the amendment. Mr. McFARLAND. Mr. President, does this amendment take the place of the committee amendment on page 477? Mr. BYRD. It takes the place of the part of {t which would be stricken out by the committee amendment on pages 476 and 477. The PRESIDING OFFICER. ‘The amendment is offered to take the place of the committee amendment which is designed to strike out section 1114 as it appears in the bill. Mr. WHERRY. In other words, it amends that committee amendment. The PRESIDING OFFICER. Yes. Mr. WHERRY. Certainly; and it does 80 by including the language which is proposed to be stricken out by the com- mittee amendment. Mr. BYRD. Mr. President, this amendment is in order, I am sure. Al- though it contains legislation, yet it amends a provision which contains leg- islation, that provision having been piaced in the bill by the House of Rep- resentatives, 11371 I should like to have a ruling by the Chair as to whether or not the amend- ment is in order. I am advised by the Parliamentarian that the House provi- sion, which is thus proposed to be stricken, is legislation, and likewise this amendment contains legislation. Mr. MCFARLAND. Mr, President, of course, this amendment will take some time to dispose of. It was not known that it would be offered today. I think the amendment should go over. Mr. WHERRY. Mr. President, will the Senator yleld? Mr. McFARLAND. I yield. Mr. WHERRY,. There is no objection to having the amendment go over until tomorrow and Le considered then. But I think the ruling of the Chair should be made now. Mr. McFARLAND. I do not know about that, Mr. President. I have not had an opportunity to study the amend- ment. I may wish to offer a point of order. So I think the ruling on the amendment should go over until tomor- row. I do not propose that it be ruled upon at this time. The PRESIDING OFFICER. The present occupant of the Chair calls at- tention to the fact that he is one of the sponsors of this amendment, as origi- nally offered; and he would prefer to have the ruling on it made by the Vice President. Mr. BYRD. Mr. President, a parlia- mentary inquiry. The PRESIDING OFFICER. The Senator will state it. Mr. BYRD. As I understand, the amendment offered by the Senator from Virgima is before the Senate. The PRESIDING OFFICER. The Senator’s amendment has been offered, and the amendment will come up at such time as the Senator may request the ruling of the Chair. Mr, BYRD. Under the unanimous- consent agreement adopted today, when will this amendment come up? The PRESIDING OFFICER. The amendment just offered by the Senator from Virginia will come up immediately after the disposal of the so-called Mc- Carran amendment, relating to aid to Spain. Mr. WHERRY. Mr. President, a par- lHiamentary inquiry. The PRESIDING OFFICER. The Senator will state it. Mr. WHERRY. This afternoon I asked that very question. The majority leader stated that he intended to finish the ECA chapter, not only to yote on the McCarran amendment, but also to vote on the entire chapter, before re- turning to the pending chapter. It so happens that the point of order which has been raised is the pending question. But certainly it would be my under- standing of the request of the majority leader, before we entered into the unani- mous-consent agreement, that the chap- ter on BCA, including the McCarran amendment, would be completed before we returned to the pending chapter. The PRESIDING OFFICER. The Chair is advised that, under the new unanimous-consent agreement entered
11372 into today, after the disposal of the Mc- Carran amendment, the Senate wil] then immediately dispose of chapter X-B, as amended. Mr. WHERRY. That is according to the understanding of the Senator from Nebraska, who also understands that the Senate will thereafter return to the chapter now pending. The PRESIDING OFFICER. After which time the amendment just offered by the Senator from Virginia would he- come the order of the business, Mr. WHERRY. Certainly. So as I understand the statement of the present occupant of the Chair, what he said a moment ago was correct, except that the complete chapter on ECA would be voted on, as amended, and the Senate would then return to the point where it leaves off tonight. The PRESIDING OFFICER. That is correct. Mr. McFARLAND, That was not what the Chair stated. The Chair stated that we would return to chapter X-B, after completing the chapter. The PRESIDING OFFICER. X-B is the chapter on ECA, the Chair will state to the Senator from Arizona. Mr. McFARLAND. Is it not chapter x-A? ahe PRESIDING OFFICER. No; it is Mr. McFARLAND. Has not chapter X-A been disposed of? The PRESIDING OFFICER. Chapter X-A has gone over for later considera- tion. The Chair feels it is only fair to state that his understanding is that the McCarran amendment will be voted on first, under the wunanimous-consent agreement entered into this afternoon, which is a inodification of the earlier unanimous-consent agreement; that, following that, the entire section, chap- ter X-B, which deals with ECA and al- lied subjects, will be disposed of, and that, thereafter, the pending question will be on the proposal made by the Sen- ator from Virginia to amend section 1114 of chapter XI of the bill. REDUCTION OF EXCISE TAXES— AMENDMENT Mr, O’'MAHONEY. Mr. President, I desire to offer an amendment to the pending tax bill. I should like to call this amendment the Korean Excess- Frofits Tax Amendment. The purpose of the provision which I am now offer- ing is to help the Government of the United States pay as it goes on the very expensive adventure upon which it has been launched by the agerecssive actions of the Communists in Korea. I do not need now to take the time of the Senate to explain the amendment, I ask unani- mous consent that a copy of the amend- ment, together with a copy of the state- ment which I am releasing to the press this evening, may be printed at length in the REcorp. The PRESIDING OFFICER. The amendment will be received, printed, and referred to the Committee on Fi- nance; and, without objection, the amendment and statement will be pi-nted in the Rrconp, CONGRESSIONAL RECORD—SENATE The amendment and statement are az follows: At the end of the bill add the following new title: “TrrL" VII—EXcEss-ProFITS TAX “Sec, 701. Reapplication of excess-profits tax. “(a) Reapplication: Section 122 (a) of the Revenue Act of 1845 is hereby amended to read as follows: “*(a) In general: The provisions of sub- chapter E of chapter 2 shall not apply to any taxable year beginning after December 31, 1945, and ending prior to January 1, 1950. The provisions of part III of such subchapter shall not apply to any taxable year begin- ning after December 81, 1945.’ “(b) Rate of tax: Section 710 (a) (1) (A) of the Internal Revenue Code is amended to read as follows: “"(A) Sixty five percent of such part of tae adjusted excess profits net Income as ex. ceeds 75 percent but is less than 80 percent of the excess profits credit determined under section 712, plus “ Seventy-five percent of such part of the adjusted excess profits net income as exceeds 90 percent but is less than 100 percent of the excess profits credit determined under sec- tion 712, plus. “Ninety percent of such part of the ad- justed excess profits net income as exceeds 100 percent but is less than 125 percent of the excess profits credit determined under section 712, plus “ ‘One hundred percent of the adjusted ex- cess profits net income as exceeds 125 percent of the excess profits credit determined under section 712; or.’ “(c) Exemption: Section 710 (b) (1) of the Internal Revenue Code is hereby amended to read as follows: “*(1) Specific Exemption.—A specific ex- emption of $25,000." “(d) Excess profits credit: Subsections (a) and (b) of section 712 of the Internal Revenue Code (relating to allowance of ex- ces profits credit) are hereby amended to read as follows: “*(a) Domestic Corporations.—In the case of a domestic corporation which was in ex- istence before January 1, 1960, the excess profits credit for any taxable year shall be computed under section 713 or section 714, whichever amount results in the lesser tax under this subchapter for the taxable year for which the tax under this subchapter is being computed. In the case of all other domestic corporations, the excess profits credit for any taxable year shall be an amount computed under section 714. “‘(p) Forelgn corporations: In the case of a foreign corporation engaged in trade or business within the United States, the first taxable year of which under this subchapter begins on any date in 1950, which was in existence on the day 36 months prior to such date and which at any time during each of the taxable years in such 36 months ‘was engaged in trade or business within the United States, the excess-profits credit for any taxable year shall be an amount com- puted under section 713 or section 714, whichever amount results in the lesser tax under this subchapter for the taxable year for which the tax under this subchapter is being computed. In the case of all other toreign corporations the excess-profits credit for any taxobile year shall be an amount com- puted under section 714.’ “(e) Definition of unused excess-profits credit: Section 710 (c) (2) of the Internal Revenue Code is hereby amended by strik- ing out the last two sentences thereof and by inserting in Heu thereof the following: ‘For the purposes of the determination of the taxes imposed by this subchapter for taxable years beginning before January 1, 1946, there shall be no unused excese-profits JULY 81 credit for a taxable year beginning after December $1, 1946. The unused excess- profits credit for a taxable year beginning in 1946 and ending in 1947 shall be an amount which is such part of the unused excess-profits credit determined under the preceding provisions of this paragraph as the number of days in such taxable year prior to January 1, 1947, is of the total number of days in such taxable year. For the purposes of the determination of the taxes imposed by this subchapter for tax- able years ending after December 31, 1949, there shall be no unused excess-profits credit for a taxable year ending before July 1, 1950. The unused excess-profits credit for a tax- able year beginning in 1949 or 1950 and ending after June 30, 1950, shall be an amount which is such part of the unused excess-profits credit determined under the preceding provisions of this paragraph as the number of days in such taxable year after June 30, 1950, is of the total number of days in such taxable year.’ “(f) No carry-back to 1946, 1947, 1948, or 1949: Section 710 (c) of the Internal Reve- nue Code is hereby amended by adding at the end thereof the following new para- graph: “«(5) No carry-back to 1946, 1947, 1948, or 1949: For purposes of the determination of the taxes imposed by this subchapter for taxable years ending after December 31, 1949, the term “preceding taxable year” and the term “preceding taxable years,” as used in this subsection, do not include any taxable year ending prior to January 1, 1950.’ “(g) Amount of excess-profits credit: Sec- tion 713 (a) (relating to the amount of ex- cess-profits credit) is amended by striking cut ‘95 percent’ wherever it appears therein and inserting in Meu thereof ‘75 percent.” “(h) Definition of ‘base period’: Section 713 (b) (1) is amended to read as follows: “‘'(1) Definition: As used in this section the term ‘base period”— ““*(A) If the corporation was in existence during the whole of the 36 months preceding the beginning of its first taxable year under this subchapter after December 31, 1949, means the period commencing with the be- ginning of its first taxable year beginning after December 31, 1048, and ending with the close of its last taxable year beginning before January 1, 1949; and “*(B) In the case of a corporation which was in existence during only part of the 36 months preceding the beginning of its first taxable year under this subchapter after December 81, 1949, means the 36 months pre- ceding the beginning of its first taxable year under this subchapter.’ “(1) Taxable years beginning in 1943 or 1950 and ending prior to June 30, 19651: Section 710 (a) 1s amended by adding at the end thereof the following new paragraphs: “«(8) Taxable years beginning in 1049 and ending in 1950: In the case of a taxable year beginning in 1949 and ending in 1950, the tax shall be an amount equal to that por- tion of a tentative tax, computed as if the law applicable to taxable years beginning after December 31, 1949, were applicable to such taxable year, which the number of days in such taxable year after June 30, 1950, bears to the total number of days in such taxable ycar. “«(9) Taxable years beginning after De- cember 31, 1949, and ending prior to June 30, 1951: In the case of a taxable year beginning after December 31, 1949, and ending prior to June 30, 1951, the tax shall be an amount equal to that portion of a tentative tax which the number of days in such taxable year after June 30, 1950, bears to the total number of days in such taxable year.’ “(j) Technical amendments: The follow- ing sections of the Internal Revenue Code are restored to read as such seotions read