10706 The PRESIDING OFFICER. The Chair will read the part of the rule un- der which he thinks the decision must be made in the present case, Mr, KEM. Mr. President, to what rule does the Chair refer? The PRESIDING OFFICER. To rule XXXIII, the last paragraph, on page 46 of the standing rules of the Senate, in enumerating the various persons who may be admitted to the floor of the Senate while the Senate is in session. The following is the closing paragraph of the rule: . Clerks to Senate committees and clerks to Senators when in the actual discharge of their official duties. Clerks to Senators, to be admitted to the floor, must be regularly appointed and borne upon the rolls of the Secretary of the Senate as such. It is the understanding of the Chair that even though various employees of the several committees might not be covered by that particular description, yet 1t has been the uniform practice of the various committees to use on the floor of the Senate a clerk or a staff mem~ ber who might be selected by the com- mittee to function at that particular time. The Chair is of the opinion that this person, being the person employed by the committee and designated to assist in the presentation of this matter, is entitled to floor. Therefore, the Chair overrules the point of order. Mr WHERRY. Then, Mr President, I appeal from the decision of the Chair. Mr. TYDINGS. Mr. President, I have not yielded. Mr. WHERRY. Mr. President, I have aright to appeal from the decision of the Chair; but I shall be willing to withhold the appeal. Mr. TYDINGS. Mr. President, I have not yielded. I do not wish to be techni- cal; but I can see nothing to result from all this other than a loss of time. Sol refuse to yield. I do not wish to be dis- courteous; but all we shall have, under the procedure suggested by the Senator from Nebraska, will be a roll call, and we shall simply waste 20 minutes. I refuse to yield for debate. Mr WHERRY. Mr. President, I made an appeal, not a point of order. A point of order is not debatable, but an appeal is debatable. Mr. TYDINGS. Mr. President, I have not yielded. Mr WHERRY. However, the Chair has already recognized me. Mr. TYDINGS. Mr. President, I have not yielded. The PRESIDING OFFICER. The Chair holds that the Senator who has the floor does not have to yield for that purpose; but any Senator has a right to appeal from a decision of the Chatr. Mr. WHERRY. Mr. President, I ap- peal from the decision of the Chair. Mr. LUCAS. Mr. President, I move to lay the appeal on the table. The PRESIDING OFFICER. The question is on agreeing to the motion to lay on the table the appeal from the decision of the Chair. Mr. WHERRY. Mr. President, on this question I ask for the yeas and nays. The yeas and nays were ordered, and the legislativ< clerk called the roll, CONGRESSIONAL RECORD—SENATE Mr. MYERS. I announce that the Senator from Virginia (Mr. Byrn}, the Senator from Mississippi [Mr. East. LAND], and the Senator from Maryland [Mr. O’Conor] are absent on public busi- ness, The Senator from California [Mr. Downer] is absent because of ilIness. The Senator from Georgia [Mr. Grorce], the Senator from Iowa [Mr. Giuetre], the Senator from North Caro- lina (Mr. Hoey], the Senator from Ne- vada {Mr. McCarran], and the Senator from Oklahoma [Mr. THomas] are un- avoidably detained on officia] business, The Senator from Tennessee [Mr. KEFAvvER] is absent on official commit- tee business. The Senator from Louisiana {[Mr. Lone], the Senator from Idaho [Mr. Taytor}, 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 No.th Caro- ling {Mr. Horry], the Senator from Maryland [Mr. O’Conor], and the Sen- ator from Oklahoma [Mr. THomas] would vote “yea” Mr. SALTONSTALL. I announce that the Senator from Washington {[Mr. Cain] and the Senator from Michigan [Mr VANDENBERG] are absent by leave of the Senate. The Senator from Idaho [Mr. Dwor- sHaK] is absent on official business. The Senator from California {Mr. EKnowtanp] ts necessarily absent The Senator from New Hampshire {Mr. Tosey] is absent on official busi- ness attending a meeting of the Special Committee To Investigate Organized Crime in Interstate Commerce. The Senators from Ohio {Mr. Tarr and Mr. Bricker], the Senator from Michigan [Mr. Fercuson], and the Sen- ator from South Dakota {Mr. Gurney] are detained on official business. The result was announced—yeas 43, nays 31, as follows: YEAS—48 Anderson Humphrey Maybank Benton Hunt Morse Chapman Johnson, Colo Murray Chavez Johnson, Tex Myers Connally Johnston, § C. Neely Donnell Kerr O'Mahoney Douglas Kilgore Pepper Ellender Leahy Robertson Frear Lehman Russell Fulbright Lucas Sparkman Graham McClellan Stennis Green McFarland Thomas, Utah Hayden McKellar Tydings Hi McMahon Holland Magnuson NAYS—31 Aiken Ives 8choeppel Brewster Jenner Smith, Maine Bridges Kem Smith, N. J. Butler Langer Thye Capehart Lodge Watkins Cordon McCarthy Wherry Darby Malone Wiley Ecton Martin Williams Flanders Millikin Young Hendrickson Mundt Hickenlooper Saltonstall NOT VOTING—22 Bricker Gillette Taft Byrd Gurney Taylor Cain Hoey Thomas, Okla. Downey Kefauver Tobey Knowland Vandenberg Eastland Long Withers Ferguson McCarran George O’Conor JULY 20 So Mr. WHerry’s appeal from the de- cision of the Chair was laid on the table. Mr. TYDINGS. Mr. President, there is nothing in the report of the commit- tee which purports to be testimony, whether it should or should not have been inserted as such in the report, which is not in itself testimony given under oath. As I was reading—and I shall not yield again until I have fin- ished presenting in some sort of sequence the story of this investigation, and I hope Senators will not ask me to yield, because it will only bring forth a denial and will only postpone the time when I can yield and, at the end, answer ques- tions. The Senator from Iowa [Mr. HickEn- LOoPER] said that he had no chance to file a report. He said he did not know what was going on in reference to the filing of the reports, and that he had no opportunity to read the report, et cetera. On June 30, the committee, according to the record, had a meeting. Mr, HICKENLOOPER. Mr. Presi- dent, I dishke to interrupt the Senator, and if he will stick to the facts, I will not interrupt. I did know that a report was being prepared, but I had no oppor- tunity to read it after it was prepared. Mr. NEELY. Mr. President, I call for the regular order. The Senator from Maryland has the floor No other Sen- ator has a right to interrupt him. The PRESIDING OFFICER. The regular order is called for. The Senator from Maryland will proceed. Mr. TYDINGS. Mr. President, dur- ing the course of the discussion this aft- ernoon I have heard some of the most erroneous statements made that I have ever heard in my life, and I shall go to the Rrecorp in order to prove their er- roneous character. But I did not inter- rupt. I have learned to wait for my opportunity. I have taken in the past 3 months much punishment in the news- papers by a colleague of mine who has used every epithet and every term of op- probrium and calumny to blackguard me, the Senator from Connecticut, and others. But I have not returned the fa- vor, because I do not want to sink to that sort of level, even off the Senate floor; and anything I say on the Senate floor, I shall say outside the Senate floor, and I shall not retract it afterward. |Mani- festations of applause in the galleries.] Mr. BREWSTER. Mr. President, will the Senator yield? Mr. TYDINGS. No; I will not yield. Mr. BREWSTER. I desired to make a correction for the Rrcorp. The PRESIDING OFFICER. The Senator from Maryland declines to yield. Mr. TYDINGS. On June 30, there was a meeting of our committee, which was attended by all five members. The question of filing a report came up. The Senator from Massachusetts (Mr. Lopaz] had said several times that he wanted to make his own observations regarding the case; which was fitting and proper. He was keeping notes, and he said he wanted to write his own report. The Senator from Iowa said he did not want to make any report; he did not think the investigation was complete enough.
1950 in his opinion, and what he had to say he would say on the Senate floor, I returned to my office, and on the fol- lowing Monday, July 3, I addressed let- ters to all members of the subcommittee, and one, particularly, to the Senator from Iowa, a copy of which I hold in my hand, and from which I now read: JuLY 3, 1950. Hon Bourke B. HIcKENLOOPER, Senate Office Building, Washington, D.C. My Dear Senator: I am scheduling a meeting of our subcommittee for 10:30 a. m., on Friday, July 7. That was a week from the time we had agreed to write a report. In accordance with the motion adopted at our last meeting, the business of this meeting will be devoted to the formulation of a report by our committee, Iam consequently ask- ing each member of the committee to have his views in written report form ready for adoption either as majority or minority views at that time. It is essential that this matter be in readi- ness so that the report, containing all views, may be simultaneously sent to the printers. With best wishes, I am, Sincerely yours, Mu..arp E. Typincs. On the following Monday I told the members of the committee that they would not be held to the strict time, but would be allowed three more days of grace, so as to give them time to make their reports. When we met, the Sena- tor from Massachusetts repeated his po- sition, and I thought that perhaps there would be some area we could carve out, as five Members of the Senate, on which we could agree. So I said, ‘‘I suggest we start with the case of Ambassador Jes- sup,” who, incidentally, had the clearest kind of supporting evidence from Gen- eral Eisenhower and General Marshall, two men who rank almost as high as any of the 96 United States Senators in in- tegrity and in standing before the people of the country. So I said, “Let us see whether we fecl that the evidence before the committee supports or does not sup- port the charges against Ambassador Jessup.” We took a vote. The three Democratic members said it did not support the charges. The two Republican members, as they had a right to do, said, “We refuse to vote.” So it was a vote of 3 to 0. I said, then, “What is the use of going on? Certainly, if we cannot agree on the case of a man like Jessup, who has the reputation of being a great patriot, supported by the Secretary of State un- der whom he served and a great general of the American Army, Dwight Eisen- hower, I do not think we can agree on anything.” They said they thought that was cor- rect. I asked the Senator from Massa- chusetts to submit his report, and he gave it to me. In order to keep faith with him, I did not read his report so that I could pick it to pieces; I did not want to comment adversely on it. I took his report to the counsel and said, “Here is Senator Lopce’s report. Put it into the record.” He said, “Have you read it?” I said, “No; I have only glanced at it.” So, if the Senator from Massa- chusetts did not see my report, I did not see his. He had everything I had. That is how fair I was with him. CONGRESSIONAL RECORD—SENATE The Senutor from Iowa [Mr. Hicken- LOOPER] made no report. He told the members of the press repeatedly, so newspaper columnists say, that what he had to say he would say on the floor of the Senate. So much for the report, Mr. President. I want to start out by saying that there are few offices on the face of the globe that carry such tremendous pres- tige, wide responsibility, and glorious opportunity as that of a Senator of the United States. So exalted is that posi- tion that a man who speaks here speaks for a whole State. The Senator from New York | Mr, LEHMAN] who represents, in part, the people of New York, speaks for more people in this legislative body than are to be found in all Holland and perhaps Belgium combined. It is a posi- tion of tremendous eminence, degraded though it may have been at times in its history, but, in the main, the annals of this body are studded with the names of illustrious men who have written in imperishable language the history of this great Republic, this great democracy which is the United States of America. At any rate, Mr. President, that is the general acceptation that goes with the term “Senator,” even though many of us, and I, perhaps more than any of my colleagues, cannot measure up even re- motely to such a position of eminence. But in the public mind, generally, when a Senator speaks, the thought is, “It must be so.” The only exception to that is when we leave the precincts of this Chamber and go forth onto the hustings where the people take what we say with more or less latitude because they know that beneath our togas and our ability to strut sitting down, we have very hu- man personalities, Mr. President, when the eminent chairman of the Foreign Relations Com- mittee asked me to head this subcom- mittee I told him twice that I should prefer not to do so. I was carrying a very heavy load, I thought, as the chair- man of the Armed Services Committee to which I devoted most of my energies, and although I was serving on his com- mittce I did not think I could, in justice to myself and to the work which lay ahead, take the responsibility. The third time he came to me I told him that I would take the job, and I took it as a public duty, realizing remotely, not clearly, that there would be no praise, no plaudits, no encomiums, because, in the very nature of such charges as these, there would be only scars, wounds, mis- understandings, and misrepresentations by men of little character who preferred to serve their own ends rather than those of their country. At any rate, Mr. President, the first thing I wanted to know when the sub- committee organized was what were the charges, not only the charges made here, but also the charges which the people of the country had heard. 8o I set about trying to find out what the American people had been told, so we could find the answer as to whether those charges were true or false. The first thing that came to my atten- tion was the fact that the Senator from Wisconsin [Mr. McCarrHy], as he had every right to do, had spoken in Wheel- 10707 ing, W. Va., on the 9th day of February before the Ohio County Republican Women's Club at a Lincoln Day dinner. The Wheeling Intelligencer, of Wheel- ing, W. Va., on the following morning carried this particular paragraph in its news column. I have had it enlarged so that Senators can read it. The original I have in my hand. In big banner head- lines it said: McCartuy charges Reds hold jobs. Tru- man blasted for reluctance to press probe— And so forth. It is written over the byline of Mr. Frank Desmond. It is not merely a promiscuous article, but it was written by a reporter who signed his name “Frank Desmond.” Here is what this particular paragraph in the speech of the Senator from Wis- consin says: Referring directly to the State Depart- ment, he— The Senator from Wisconsin— declared, “While I cannot take the time to name all the men in the State Depart- ment— All the men— who have been named as members of the Communist Party and members of a spy ring; I have here in my hand a Hst of 205 that were known to the Secretary of State as being members of the Communist Party, and who, nevertheless, are still working and shap- ing the policy in the State Department.” There we have a spy ring known to Acheson. There we have 205 Com- munists known to Acheson, He will not do anything about it. I shall come back to this later. I then asked the radio station whether the Senator from Wisconsin had made any such statement. Mr. Paul A. Myers, who is program direction of radio station WWVA, made the affidavit which I hold in my hand. This is an enlargement of the original affidavit. As program director of radio station WWVA, I read the attached 18-page speech script before it was delivered by Senator JosePH McCartuy on February 9, 1950. I reviewed our tape recording of the delivered speech before WWVA broadcast it on the same even- ing, and again reviewed it against the script on the following day. Mr. President, I should like to read that again: I reviewed our tape recording of the de- livered spcech before WWVA broadcast it on the same evening, and again reviewed it against the script on the following day. I certify that the tape recording was the same as the attached script with the excep- tion of interpolations and connective words such as “‘a’s,” “and’s,” and “the’s”; which to my way of thinking do not change the mean- ing of the text. I have initialed each page of the attached photostatic copy of Senator McCartiy’s speech, Paut A. MYERS. And so forth. These [indicating] are th2 pages of the speech made by the Senator from Wisconsin which were handed to Mr. Myers, and he initialed them on each page. So far, Mr. President, we have the Wheeling Intelligencer and the program director, who say the same thing. I have before me an affidavit by Mr. James A. Whittaker, who fs thc news editor of the
10708 radio station WWVA, who says under oath: Ar news editor of radio station WWVA I was in charge of the tape recording of Sen- ator JosEPH McCarTHY’s speech at the Hotel McLure, Wheeling, W. Va., on February 9, 1950. At the hotel I followed the prepared script as I listened to the speech. I certify that the delivered speech as re- corded by me and on that evening broad- cast by station WWVA was in the same form as the attached photostat of the prepared acript— And so forth. Here [indicating] are all the notations, page for page. I asked the Senator from Wisconsin, on one occasion when he was before our committee in executive session, if he had said that. He said “No.” He was asked repeatedly on the floor of the Senate by the senior Senator from West Virginia [Mr. Kiicore} and the junior Senator f-om West Virginia [Mr. NeEety] if he had said that. He refused to answer either one way or another after being acked to give an answer on four separate occasions. I rose, and without heat, said, “It secms to me the Senator is an honest man and could answer the question yes or no.” He did not answer it. Mr. President, I am not investigating the Senator from Wisconsin. However, I must investigate the charges made by the Senator if I am to do the job and put credence and credibility in what might be connected with these charges. That is what the American people want to know, becauce when a Senator says there are 516, 205, 57, 108, or 25 spies, or 1 spy, even in the State Department, it is not the statement of a man on the corner of Ninth and G Streets who is carrying on a casual conversation with people who are going home from work. It is the voic’ of the Republic. It is the voice of the Government. It is a challenge, at a time when men are faced with perhaps the cruelest and most violent enemy in ail the history of Christendom, the Red Communists who today in Europe and in the Far East and all over the globe are taking such a toll of freedom, de- mocracy, human life, and liberty. It was not long ago, Mr. President, that I rose on the floor of the Senate and de- nounced the infamous trials behind the fron curtain by which Cardinal Mind- szenty by methods which we were asked to adopt here and which, thank God, we did not adopt, was pulled from his altar, sacred to God, and human rights as it was, and thrust into a slimy dungeon. For that I received the encomiums of much of the press. I have visited the capitals of Europe, and all the battle- fields, including Hiroshima and Naga- saki; I observed the plane drop the atomic bomb over Likini; I have inter- viewed nearly every defense minister in Europe and have brourht home in- formation with regard to the de- fense program, to the end that communism might be held in check, while some of those who now parade their patriotism were voting against the Marshall plan, the arms aid plan, and the North Atlantic Security Pact, and the other day, here in public, made the biggest double somersault I have ever seen when for the first time they said, “I will take a different course CONGRESSIONAL RECORD—SENATE now because the Reds are actually in South Korea.” However, Mr. President, let us proceed with the narrative. I have referred to what was in the script which the Senator from Wisconsin gave to these two eml- nent gentlemen and gave to the news- paper reporters. It was the same old thing. It refers to 205 members of the Communist Party. It refers to the mem- bers of the spy ring, who are known to Acheson. Think of that, Members of the Senate. Here is a Secretary of State with 205 known Communists in his De- partment, with a spy ring in his Depart- ment, and he is so low and vile and un- patriotic that he permits them to stay there and whittle away at the vitals of our Government and to tear down our free-~ dom, tradition, heritage, and history of which you, Mr. President, and I are so proud. The Senator from Wisconsin denied it. Mr. President, I wonder if I could get unanimous consent to play a radio re- cording of the Senator’s own voice on one of these occasions. I ask unanimous con- sent that I may play a recording of the Senator’s own words. I am not asking Senators to take my word, but to hear the Senator’s own voice, who says he has not made a statement of this character. The PRESIDING OFFICER. Is there objection? Mr. WHERRY. Mr. President, reserv- ing the right to object, I would be the last man on earth to stop a complete and full report of the distinguished Senator from Maryland. I feel it ought to be done some place else than on the floor of the United States Senate. The reason I say that is that we have certain rules per- taining to the use of this Chamber. Mr. TYDINGS. I withdraw the re- quest. Mr. WHERRY. Just a moment, please. Mr. TYDINGS. I withdraw the re- quest, Mr. WHERRY. I should like to state my reasons, My. TYDINGS. If the unanimous- consent request is to be denied, I with- draw it. I withdraw the unanimous- consent request and retain the floor. Mr. WHERRY. Certainly I can give my reasons, can I not? My. CHAVEZ. Mr. President, regular order, Mr. TYDINGS. I withdraw the re- quest. The PRESIDING OFFICER. The Senator has withdrawn his request, and therefore the Senator from Maryland has the floor. Mr. WHERRY. Later I shall give my explanation. Mr, TYDINGS. I will play this record off the Senate floor in due time, but ad- mission will be by card only. [Laughter.] Mr. President, I then went to the Con- GRESSIONAL Record. I had not been on the floor taking part in any of the de- bates. I read how the Senator from Tilinois had persistently repeated more or less the same language which I have repeated, and asked the Senator from Wisconsin if he had nor had not said, and although it seemed easy to say “yes” or “no,” no answer was forthcoming for JULY 20 a long, long while. Finally the Senator from Wisconsin did read on the floor of the Senate a verbatim copy of the same speech which these radio people and newspaper people in West Virginia had been given, except that when we got down to this place (indicating on chart) the language had changed in this para- graph. The Senator then in his written speech said: I said I had in my hand the names of 57 persons in the State Department who were either Communists— Not card-carrying— who were either Communists or loyal to the Communist Party, Thus we have gone from 205 card- carrying Communists, and persons in the spy ring, to 57 who were either Com- munists or loyal to the Communist Party. But in the meantime the eminent Senator from Wisconsin and my good friend from Nevada made a little ex- cursion to Salt Lake City, and there both of them went on the radio again, as the Senate will remember. The Sen- ator from Wisconsin talked about com- munism. The Senator from Nevada talked about world trade, and a little about communism. I have a record of that. I shall be delighted to play it, but I suppose I shall have to play that out- side, too. This is what the record would say if I could play it, but my hearers wil] never get the full beauty they would through hearing the golden voice itself telling it. (Laughter.J It is like going to the Metropolitan Opera in New York and hearing Lauritz Melchoir, the great Danish tenor, reading the libretto in- stead of with a full-throated orchestra in full cry accompanying him, singing it with his soaring golden tenor, reaching out and reverberating through the halls of the Metropolitan Opera. But, even so, it is fairly interesting. Here it is. I shall try to imitate it a little, because I have played it several times. (Laughter.] Listen to this. This is Dan Valentine, the radio announcer: As I understand, Senator McCarthy, you have a rather startling statement to make. Is that right? That you've made earlier in the day. Senator McCartHy. I gather you think it’s startling, Dan. DAN VALENTINE. I think all America would think it startling. Senator McCartnuy, Last night I discussed the Communists in the State Department. “Last night” was at Wheeling, W. Va. Keep that in mind. This is only the following day. This is the 10th. Last night I discussed the Communists tn the State Department. I stated that I had the names of 57 card-carrying members of the Communist Party. Not members of the Communist Party, not people who were alleged to be Com- munists, but the names of 57 card-carry- ing members of the Communist Party. We have gone from 205, in Wheeling, on the 9th, down to 57 in Salt Lake City, in 24 hours, and in the process we have lost how many? How many is 57 from 205? Mr. KILGORE. One hundred and forty-eight.
1950 Mr. TYDINGS. We have lost 148, and I would not be surprised—and I say this with a smile—if it did not happen as the plane went over Nebraska. [Laughter.] I know of no better place to put them, be- cause the Senator from Nebraska could take care of them. Mr. WHERRY. Will the Senator yield? Mr. INGS. I would rather not. Mr. WHERRY. Oh—— Mr, TYDINGS. That was a compli- ment, Mr. WHERRY. I want to thank the Senator, I certainly appreciate that very much, indeed. Mr. TYDINGS. It was intended only as a compliment. Mr. WERT. If I had know this was oing to be so eloquent I think it would ave been better to have the record played. I do not believe the record is as good as the Senator from Maryland is. Mr. TYDINGS. At any rate, remem- ber what the Seutor from Wisconsin has said—and I can show it, page and date, in the ConarrssIonaAL REcorp. He told the Senator from Illinois this: Hore is what I said. I said in West Vir- ginia this: I said I have in my hand 57 Com- munists, or individuals, who would appear to be— Not who are, but who would appear to be— either card-carrying members or certainly loyal to the Communist Party, but who never- theless are still helping to shape our foreign policy, But he does not even say they know Acheson, and the reference to a spy ring was lost as they crossed Missouri. It was dumped there, and the freshet had been on at that time, and carried it down to the sea, and to complete oblivion. But bear with me, bear with me. After he said, “I stated that I had the names of 57 card-carrying members of the Communist Party,” he said: I noticed today that the State Department has denied that, They say they do not know of a single one in the State Department. I want to tell the Secretary of State this: If he wants to call me tonight at the Utah Hotel, I'll be glad to give him the names of those 57 card-carrying Communists. I might say this, however, Dan, the day that Alger Hiss was exposed the President signed an order to the effect that no one in the State Department could give any infor- mation as to the disloyalty or the commu- nistic activities of any State Department employee. Then later they went a step fur- ther. They said, in addition to that, no one in the State Department could give any in- formation as to the employment of any man in the State Department. Now, obviously, before we will give the information, give him names of Communists whom he—the names he certainly should have (if I have them, he should have them). I want this: An indication of his good faith. The best way to indicate that is to say that, at least as far as rules 57 are concerned, when you give me their names, then all information as to their communistic activities, as to their dis- loyalty, will be available to any proper con- gressional investigating committee, Have I made myself clear, Dan? (Laughter.] Those of my colleagues who hear the record will excuse me for a poor imita- tion, but it has some remote likeness. CONGRESSIONAL RECORD—SENATE Mr. WHERRY. Mr. President, will the Senator yield? Mr, TYDINGS. tinue: Daw Varenting. In other words, Senator, if Becretary of State pean Acheson would call you at the Motel Utah tonight in Sait Lake City, you would tell him 59 names of actual card-carrying Communists in the State Department, actual card-carrying Com- munists Senator McCarrmuy, Not only can I, Dan, but I will, as I say, on condition—— Dan VALENTINE. I don’t blame you for that—— Senator McCartuy. That they lift the veil of secrecy and allow the congressional com- mittees to know about the communistic activities and disloyalty in that Department, DaN VALENTINE, What do you think of that, Senator MaLonn? . Senator MALone. Well, Dan, I think Joz {s doing a whale of a job. [Laughter.] In baseball that is what we call an assist, But Dan cannot get over it. I am going to pass over a good deal of this, Dan Valentine is a man who can- pot, be convinced, so he keeps coming ack, DAN VALENTINE. Well, Iam just a common man out here in Salt Lake Oity, a man who's got a family and a son anda job. You mean to say that there are 57 Communists in our State Department that direct or control in our State Department? Senator McCarriy. indicate there's only 57. names of 57. Dan VALENTINE. There’s at least 57? Senator McCartny. I don't claim to be any FBI or anything, so when I have the names of 57, you can be right well sure there’s a lot more. Incidentally, the Presi- dent’s own loyalty board gave Mr. Acheson, the Secretary of State, the names of 283 out of one small batch that they screened. They said these men are bad risks. You shouldn't have them in the State Depart- ment; and out of 283, 207 of those are still in the State Department. Now may I say this also, Dan. While I would like to take credit for digging up all this information, netually— And bear this is mind— the House Un-American Committee have done practically all of this work. That is how new it was. I have many other sources of information also, some of them from right within the State Department, and I may say that there are some very fine men in the State Department, I think there are three or four there. (Laughter. | If there were not, I would not be able to have these names tonight, ° Dan VaentTine. They probably want them out more than anybody, don’t they? Senator McCartHy. They realize the danger of the situation perhaps more than anyone else— And so on and so on. That is what the Senator from Wis- consin said in Salt Lake City; not what he said to the Senate he said either in West Virginia or at Salt Lake City, but what his own voice shows he said. There cannot be any doubt about whose voice it is. He told us under oath that was not what he said, but the record stands there to challenge that statement. I cannot. I con- I don’t want to I say I have the 10709 When he comes across things like that what should a United States Senator tell the people of his country? On this Odyssey, somewhat like the trip of Ulysses, after a while the Senator from Wisconsin went to the habitat of my good friend who sits next to me, the genial, able, conscientious anti-Com- munist, loyal American, hard-working legislator, deserving of his State's affec- tion and pride, Pat McCarran. He went to Reno. Now here is where the cat begins not only to get out of the bag but it takes pretty nearly all the bag with it on the way out. I exhibit the blown- up paragraph of the Nevada State Jour- nal of Reno, Nev., February 12. Sen- ators will note that the action is taking place on successive nights. Here it is, and over the headline appear the words, “Written by Edward Conners,” a special writer. Here is the paragraph in ques- tion which the Senators can see blown- up on the board. This is what the newspaper says: Senator McCartuy, who had first typed @ total of 205 employees of the State De- partment who could be considered disloyal to the United States and pro-Communists, scratched out that number and mentioned only ‘57 card-carrying members’, whom Acheson should know as well as Members of Congress. Senators will note that the 205 which was in all the other statements was still in the speech he handed to Mr. Con- nors, but he crossed out 205 and put “57” over it. Mr. President, there is too much evi- dence to doubt what was actually said, particularly when we have a voice here which can speak louder than the five silent exhibits I have already shown the Senate. That is why I said a hoax and a fraud was practiced on the people of the United States, and, by the eternal gods, that is true. But let us goon. That is not the half of it. There was next detailed in this sordid episode the cases of 81 individ- uals. On the Senate floor a num- ber was called, and then an account of the person represented by the number was, without mentioning the name of the person, read. Give me that red book— 81 cases. Oh, my, how the newspapers did lap up these things. Eighty-one spies in the State Department. Eighty-one Commu- nists in the State Department, known to Acheson. “He will not do anything about it.” “Day after day Typiivcs and his gang are whitewashing.” Day after day my lips were sealed, while I had thts little red book in my hand. And what does this little red book show? Before the loyalty program was put into effect by Presidential order, which was about the fall of 1947, there was no screening process such as there is now. So with the conclusion of World War II, when many agencies were covered by Presidential order into the State De- partment, and when the Russian situa- tion did not work out as many people had hoped it would, it became necessary to screen those people to see whether or not they were more Russian than American
10710 So a loyalty program was set up—not by Congress, but by President Harry Tru- man—and boards were created to ex~ amine these cases, and General Mar- shall, just before that time, or while it was going into effect, was Secretary of State. He was called up by the House Committee on Executive Expenditures. Marshall said, “Go to the Department.” It was Secretary Byrnes first, I believe. He said, “Look over the files. Give us your suggestion.” It was Secretary Byrnes who said that. So the inspector of the House Committee on Executive Expenditures actually went to the State Department and brought the files back with him. He went through them from beginning to end, and made a summary of what was in each one of them; a little summary such as I exhibit here. And what do Senators think? That was the summary the Senator from Wisconsin read on the floor of the Senate, with a few adaptations to give it some semblance of newness, - I want to show this to the Senate. Remember that when each one of these files was looked over by the representa- tives of the House Committee on Ex- penditures in the Executive Departments there was on the outside a little sum- mary of what the information in the files contained. That was in the Eigh- tieth Congress, which was not controlled by this side of the aisle, incidentally. I now want to show the Senate what the file itself says on the outside. This is what the file says. This is one of the matters: A report of April 24, 1947. That is what the file says. This is what the Senator from Wisconsin stated: Another reference to April 24, 1947. The file goes on: The subject has been a contributor to the Hungarian Communist magazine NOK, The Senator from Wisconsin: The individual had been contributing to the Hungarian magazine NOK— And so on down the line. That was the new information that was brought to the Senate, the warmed-over investigation, not by that committee alone, but by four separate committees of the Republican controlled Eightieth Congress, not one of which thought any of these cases of sufficient character to ask that a single one of them be discharged by name, or to bring a report to the floors of Congress. I can take summary after summary and read the summary on the file and then read the summary the Senator from Wisconsin read, and draw the deadly parallel. So when some shout “whitewash” I am going to show the Senate that we Democrats are in some very “extinguished” company. [Laugh- ter.] Mr. WHERRY. Mr. President, will the Senator yield? Mr, TYDINGS. In a moment. Here are the four committees of the Eightieth Republican-controlled Con- gress that had most of these same files, and some that the Senator from Wis- consin did not have: The House Com- mittee on Appropriations, which of course was Republican-controlled; the CONGRESSIONAL RECORD—SENATE House Committee on Expenditures in the Executive Departments, which of course was Republican-controlled; the House Committee on Foreign Affairs, about which Senators will hear more later on; and the Senate Committee on Appropriations, which was Republican- controlled. General Marshall was called before the committee and was interro- gated. As my friend, the Senator from South Carolina [Mr. MayBanx], will re- call, for he was on that committee, Gen- eral Marshall was called before it and was interrogated about these same cases. Now I wish to read from a speech by Representative Jonkman. He also had contact with this matter. He was a Re- publican from Michigan, and was a mcm- ber of the House Foreign Affairs Com- mittee in the Eightieth Congress. After he looked into the matter, here is what he said in a speech on the floor of the House: But before the Eightieth Congress ad- journs, I want the Members to know there 1s one department in which the known or rea- sonably suspected subversives, Communists, fellow travelers, sympathizers, and persons whose services are not for the best interests of the United States have been swept out. That is the State Department. For this job the people of the United States can thank to a great extent, in the order in which the work was done, first, Congressman Bartel J. Jonkman— Who was then speaking— of the fifth district of Michigan, who, on July 10, 1946, was appointed a committee of one from the Committee on Foreign Affairs to investigate Communists in the State De- partment; and, second, the people them- selves, who on November 6, 1946, elected a Republican Congress; and, third, Mr. John E. Peurifoy, who after that election was ap- pointed to the office of Assistant Secretary of State— Et cetera, et cetera, et cetera. All of them examined the same cases. So there they are. Even the two Republican Members of the Senate who were mem- bers of the subcommittee of the Foreign Relations Committee, and who examined into the loyalty of the employees of the State Department, and had access to these same files, did not make a single recommendation that either or any or all of them was a Communist. Mr. LUCAS. Mr. President, will the Senator yield at this point? Mr, TYDINGS. Only for a question. Mr. LUCAS. Did Representative-— Mr. WHERRY. The Senator from Maryland would not yield to me. Mr. TYDINGS. Mr. President, Sena- tors can examine the minority views and the majority report, both of which were made after we had the 81 cases in our hands at the White House, after we had all the opportunity in the world to read everything in them, and Senators can hunt in the report and in the minority views wherever they will, but they will not find in them a single word that a single one of the 81 cases has been found to be a Communist or a spy or a disloyal person by the Senator from Maryland (Mr. Typ1nes], the Senator from Rhode Island [Mr. Green], the Senator from Connecticut [Mr, McManon], the Sena- tor from Iowa [My. HickenLooper], or the Senator from Massachusetts (Mr. LopcgJ JULY 20 As a matter of fact, of course, the Sen- ator from Wisconsin {Mr, MoCarrry] said the files would show that he was correct in his charges. When I went to the White House and asked the Presi- dent to let me have the files, so that I would not have to subpena them—and I did not make statements about that conversation and request for the news- papers to make the headlines, either, though I went to the White House three times—I said to the President, “I think in this case the people of the United States are entitled to know.” The President replied, “I want you to have the files. My only fear is that, if I give them to you, every other commit- tee which comes along will say, ‘You gave the files to that committee. Why don't you give them to us? Then there would be no privacy—-nothing of that sort at all.” I replied, “Four committees of the Re- publican-controlled Eightieth Congress had the files. They did not do anything about them. I should like to go through them and see if I can do something about them. Certainly, if you have already let four committees of the Eightieth Con- gress have access to them, why can’t we have them? The people want to have this matter settled, and not have it made a football to be kicked back and forth.” The President said, “You have a point there. I could let your subcommittee have the files, in view of the precedent that four other committees already have had them.” However, Mr. President, day after day, as proclaimed in the newspaper head- lines, the Senator from Wisconsin said, “The President refuses to give the com- mittee the files because he knows that the files will show that I told the truth.” Some of those statements and some of the statements made on the floor of the Senate were far from reflecting the de- gree of comity and respect which my friend the able Senator from Massachu- setts says should characterize the rela- tionship between Senators—and let me say that I aim to have such comity and respect maintained between all persons, whether in office or out—and the man who happens to be the President of the United States. Mr, Truman turned the files over to me. He said—and I quote his words al- most verbatim: “Mui.uarp, if there are any subversive people in this Govern- ment, any Communists, any bad char- acters, I want you to say so.” Mr, President, later I shall show the Senate more, in writing, to prove that in all this matter the President has been the one who has put the pressure on all the Departments to kick out such per- sons, although in the newspapers he has been paraded about the country as hav- ing taken just the opposite course. Of course, Mr. President, the Senator from Wisconsin said that as soon as we got the files they would prove his case. Then he said that when we could not get them the reason we could not get them was that they would prove his case, Then, when we did get the files, the Senator from Wisconsin said they had been rifled and robbed and raped.
1950 So it did not make any difference what we did; we could not prove anything, so said the Senator from Wisconsin. At any rate, we went through the files, My colleague the Senator from Iowa |Mr. HICKENLOOPER], read nine out of the great number on the table—nine, that is all, He thought so little of them that he read only nine of the files which the Senator from Wisconsin said would prove his case. There the files were; we had them for 6 weeks, The Scnator from Iowa said, “I am not going to bother to read all this stuff ” However, the Senator from Wisconsin had said they would prove his case; and for days on end the newspapers carried statements to that effect, while we were being charged with being whitewashers, and while our lips had to be kept sealed and silent, lest some persons be tipped off that they were being investigated, and lest we should get into what they wanted us to get into, namely, nothing but a billingsgate argument. My colleague the Senator from Massa- chusetts {Mr. Lonce], after he read 12 of the files, said, very honestly, “I am not going to read any more.” He said, “T am not a lawyer. I think it is very difficult to appraise these files. I am simply going to say that I do not think I can do a job on them’’—or words to that effect—“the sort of job which should be done by someone who is trained to do a job of this kind” The Senator from Connecticut | Mr. McManon] and I and, I think, our col- league the Senator from Rhode Island [Mr. Green], shared the work a little, and took each other’s word, when we got to a file, for certain parts of it. I personally undertook to read all the files on the table, although by doimg so I missed a number of important votes in the Senate, and although at the same time I had to attend various important committees of which I am a member— including the Joint Committee on Atom- ic Energy, the Armed Services Commit- tee, and the Foreign Relations Commit- tee—and I also had to take on this work, which took 6 or 7 hours a day. The re- sult was that I was rather tired and haggard every night; but at the same time I was being berated every day and night in the press and by the Axis-Com- munist press and by their one kept radio commentator. While I am on this subject, let me say that in the middle of one of those very, very long days, when I was very tired, I addressed the chamber of commerce, and I talked frankly on communism and on the problems which confronted our committee It was lucky that I was so well received, because the press had been tremendously adverse up to then; the newspapers had only one thing to say about our subcommittee, and that was charge after charge after charge, with never an answer, But I went at the thing. They were very courteous, and when I finished, I told them I would do exactly what I have done—examine all the evidence that was pertinent to this issue and let the chips fall where they might. And I said, “I shall have to leave before this session is over, but I am glad CONGRESSIONAL RECORD—SENATE I had an oppurtunity to make this brief talk.” They applauded. The next speaker spoke briefly. He was Mayor D’Alesandro, of Baltimore City. When I left the room, the audience stood up and applauded. It made my sorrowful heart feel good, in the face of the de- nunciation I had taken, that the people of my own State, trained as much as any people on earth in tolerance, were fair enough to withhold judgment until all the evidence was in. I felt very proud about it. But, that night, or the next morning, on the radio, the kept commentator of the isolationist press said, “Senator Typmncs was roundly booed at the chamber of commerce meeting.” I did not get any boos at all, The applause was a tremendous compli- ment. My colleague, the Senator from Maryland [Mr. O’Conor], who was there, called up the gentleman and said, “You are wrong about this,” and he ex- plained it to him; whereupon the gen- tleman repeated the charge the follow- ing night. [fLaughter.} I have not finished on that score yet, either I do not start fights quickly, but I do not run away from them when I am at- tacked. That goes for more places than one Then the Senator from Wisconsin said the files had been raped. So I said, “All right.” I called up the Department of Justice and said, “I want you to get the FBI to go down there and check over those files. That is what the FBI 1s for, to see that fraud and thievery and dis- honestry do not take place in the great departments of our Government, par- ticularly in the State Department. If there is anything wrong with those files, I want you to tell me about it” So the Attorney General said to the FBI, “Give us all the material you have got, that you have turned over to the State Depart- ment, touching on the loyalty of these people” The FBI put it all together, and attorneys were sent from the De- partment of Justice to the State Depart- ment, where they compared paper by paper. They came back and reported to me in writing that the files were intact, and I so stated in the press Then, just as I was about to make my report, the Senator from Wisconsin said that I had said that the FBI checked the files—of course, I did not know who actually checked the files—and that that was not the case. So I called up the Attorney General and said, “I want the FBI to check those files, and if they do not check them, I think we ought to have another investigation. That is what the FBI is for, to see whether there is any fraud in the keeping of the secret records of this Government. If there are any shenanigans there, I want to know it” And for the second time I received a report giving a clean bill of health, which I am going to read, now, for the first time. I did not put it in the newspapers right away, to make an- other headline, although I have had it for quite some while, It reads: My Dear Senator: At my request the Fed- eral Bureau of Investigation has conducted an examination of the State Department fles 10711 which the members of your committee have been reviewing Previously— That is the first time I asked for it— Deputy Attorney General Ford advised you, under date of June 16, 1950, that the Federal Bureau of Investigation had furnished him 8 copy of all loyally material which had heen furnished the State Department in these cases, that a check had been made under his direction, and that it was found that all of the FBI reports and memoranda which had been furnished the State Department were contained in the file. I requested the Federal Bureau of Investi- gation to make a similar investigation of these files, in view of the further question raised several days ago by Senator McCartHy regarding their completencss. The examina- tion, made on July 3 by the Federal Bureau of Investigation, discloses that the files con- tain all FBI reports and memorandums fur- nished to the Department in these cases prior to the time they were turned over to your committee, with the following exception, re- garding which the Federal Bureau of Investi- gation reports as fullows— One file— Case No 51 "File complete except sum- mary, dated May 138, 1947, not in file, al- though substance of summary set forth in State Department Investigative report dated July 19, 1947" Sincerely yours, J. Howanp McCrata. So I have had it checked twice, now, by the FBI. Keep in mind that the loy- alty program was set up in October 1947, and every case where there has been any real charge of disloyalty has had a full field investigation by the FBI, and all investigations touching on loy- alty, in every manner, shape, or form, are in those files now; and that is what this letter says, and that is what was made available to the committee. Then the Senator from Wisconsin said they had been rified in 1946, and he had some affidavits, which were unsigned. It would not have made any difference if they had been signed He himself said in the Senate that if we got the files, they would prove his case. He himself said here that the reason the President would not give us the files was that they had the material in them which would prove his case. Then, when I got the files, he said they had been rifled. Now, it is impossible to reconcile all those statements. Each of them cancels out the other. If any material was taken from the files in 1946, it was before the FBI was called into the picture, because the loyalty program did not go into effect until the fall of 1947, and that is when the materials started to accumulate. I have dealt with that, but I love this little chart findicating!. I call it Be- hind the 8 Ball, and I hold it up so that all may see. There are eight separate committees listed, including the House Committee on Appropriations of the Eightieth Congress, Republican-con- trolled—there was nothing there to be- come excited about—the House Commit- tee on Expenditures in the Executive De- partments; the House Committee on For- eign Affairs of the Eightieth Congress, Republican-controlled, with that elo- quent disciple of purity Representative Jonkman, who so eloquently gave the
10712 tribute and encomium to the State De- partment which I read a moment ago; and the Senate Committee on Appropri- ations, which was Republican. I should like this chart hung upon the wall Some day I hope it will earn merit in the National Gallery of Art, [Laugh- ter.) I have titled this futuristic de- sign and painting “Whitewash.” I have seen whitewash before, but it is the first time I have ever seen it applied with eight coats on any political fence in the history of America. So much for the spectacular side of the 81 cases. Who has been on trial, here? Has it been the State Department? I do not think so. Has it been the Congress? I do not think so. It has been the Federal Bureau of Investigation. It is the agency created by this body to hunt spies, crooks, thieves, income-tax dodg- ers, saboteurs, file robbers, grafters, any any others who have unfair and illegal contact with the Government of the United States. Mr. President, if there was a spy ring in the State Department, as was alleged in Wheeling, W. Va, speech, if there were 205 card-carrying Communists, that information should have been disclosed not in a hullabaloo on the floor of the Senate, or on the hustings, but to the FBI, to J Edgar Hoover and his fine organization. Believe me, if there was anything of substance in the charges, the FBI would have acted, and in 2 minutes would have brought the culprits to justice. We have been using the investigative system in trying the charges of the Sen- ator from Wisconsin. Do Senators think that if these charges had sub- stance there would not have been action before this time? I have given Mr. Hoover every day my own reports of the procecdings, open and secret, so that he knows as much about {ft as docs any- one in America. So far as I know, no flying squads have arrested a lot of people, at least not up to now. It is not the job of the Senate of the United States to run down spies and dis- loyal persons Our job is that of inves- tigation only, to see whether the agen- cies which we ourselves have established are competent, able, and equal to the task we have assigned them. I believe they are. The Senator from Wisconsin does not believe so, because his very indictment of these gentlemen indicates a belief that the cases which have been investigated in full ficld investigations, which are in the 81 files, and which the Senator says stamp these persons as Communists and members of 4 spy ring, do not evidence good investigative work, since he says they really are Communists and members of a spy ring. Then we came to the case of Owen Lattimore. So far as I know I never saw Mr. Lattimore in my life until he came before the committee. I had heard of him, I knew he was an expert, so-called, on far eastern affairs, a professor at Johns Hopkins University, a man who was supposed to be, and I believe is, very scholarly; he has written a great many books and is very determined and inde- pendent in this thinking, CONGRESSIONAL RECORD—SENATE Finally, after we got the 81 cases, like the second act in Macbeth, all the scenery on the stage was changed. The 81 cases were in Act I. That had been performed; that no longer served the purpose. We could not make headlines over and over again with a murder, par- ticularly when 8 police inspectors had already gone over it. So we got to the top Red spy in the State Department, thy chief architect of our far eastern policy, and, as things were going badly, some people said, “Oh, my God, is he re- sponsible for this?” It fitted in per- fectly. So we started the long voyage, all over again, to find out whether Mr. Lattti- more was the top Russian agent, the top Red spy, the chief architect of our far eastern policy. I wrote to former Sec- retary Hull, former Secretary Byrnes, former Secretary Marshall, and Secre- tary Acheson. I could not write to Mr. Stettinius, unfortunately, because he had died. But all the other Secretaries of State from 1933 onward were written to. I asked them if the charges were true, insofar as they knew; was this man the maker of our far eastern policy; was he the chief architect of our far eastern policy? Each of them replied— and the letters are all in the report: I never saw him in my life to know him. I never had any dealings with him He had no more to do with the far eastern policy than had anyone else. He was never an employee of the State Department. There is nothing to the charges at all. Even Mr. Budenz, who appeared be- fore the committee at the request of the Senator from Wisconsin, testified that he thought that charge was not technically accurate. But the Senator from Wisconsin said he would stand or fall on that case. And so I again start- ed my legs down to the White House I said, “Mr. President, you have got to let us see the record on Owen Latti- more.” He said, “Oh, I cannot do that. If I did that, there would be a hundred in- vestigations launched tomorrow morn- ing. This is an election year, and they will be started all over the place, and there will be 10 committees knocking on the door. If I let you have that, I can never live it down, and the whole thing will explode, because a great many of these charges are minor. Some of them may be bad. Some of them may he proved; a great many of them are dis- proved. We cannot be having people’s reputations slandered.” I said, “I know, Mr. President, but you have got to let me have that file. The people of the country are entitled to know.” He said, ‘““Mruarp, I am sorry; I should like to do it; I know you are in a hot spot up there.” I said, “I submit, Mr. President, you have got to let me have that file.” He said, “By God, you are going to get it.” Those were his exact words. He said, “But I cannot let you have the files, because that would break the rules, but I will get a summary of that file JuLy 20 made by Mr. Hoover. You can believe him; can you not?” I said, “Yes.” So we had Mr. Hopever read this file, amounting to 14 pages. I came away and did not call up any- one to have anyone arrested. I did not feel that the Government was going to pieces. I thought, if that is all there is about Mr. Lattimore, and the Senator from Wisconsin will stand or fall on this case, he is away down below the center of the earth by now. At any rate, my friends who came back in the cab with me did not seem to be worried that the Government was going to fly to pieces and that a spy ring was going to take over. My Republican colleague, the Senator from Massachusetts  [Mr. Lover], in his minority views—I do not quote him verbatim—says the charges against Lattimore have not been proved, So, if the Senator from Wisconsin is going to stand or fall on that case, cer- tainly, since he is a man who, like every other Senator, keeps his word, it puts the committee pretty well in the clear. I know he said that on the floor of the Sen- ate, and I know he would not go some other place and say something else. Oh, what headlines the great spy case made. J can see the room now, packed with teeming people, with the kleig lights and the radio on, Owen Lattimore sit- ting there, a little bit of a figure who had come halfway around the world as fast as he could come to answer the charges There he sat. The investiga- tion was new then, and if one of us uttered a syllable to the effect that there might not be complete proof of the charges, we were Red sympathizers and fellow travelers, We were supposed to adopt the rule of guilt by accusation— accuse a man, take him out and shoot him That is the old Russian system. With reference to Lattimore, four members of the committee who saw fit to file reports—the majority reports and the one by the Senator from Massa- chusetts [Mr. LonceE]—say the charges are not proved, The Senator from Wis- consin said his file would show that Lat- timore was the top Red agent and a Communist. We heard it read So far four members of the committee have said that that is not so. What difference does that make? The newspapers will not have time to print much of what I am saying here today in rebuttal to 5 months of false smears and headlines, They can say, “What do we care about this except to wind it up, and if there are bad men in our Government, get them out, and if the charges are not true, say so. Our hearts are in Korea. We are not going to waste time now printing very much about these charges, The poor devils whose names were pa- raded across the headlines will be lucky if they get a mention on page 78 in the last column under the weather reports.” I could refer to Jessup, to whom Gen. Dwight Eisenhower and General Mar- shall wrote glowing tributes, but I wish to talk a little about “Miss Amerasia,” or what I call Whitewash No. 2. In the spring of 1945, when the war was still going on, the similarity of a
1950 short news article in a magazine called Amerasia to a dispatch that had come from China attracted the attention of a very wide-eyed observer in the Agency known as OSA, who thought it was un- usual that there should be published in this magazine, an account of some doings in Thailand, when the dispatch that had come to them had never been released. An investigation was made at night by a man named Frank Bielaski. In the of- fice of Amerasia, which vas a magazine of about 1,800 circulation, with a staff of five or six people, including tl.e stenog- rapher and office boy, he found a great many documents of all categories. There were memorandums, notes, private papers, and classified documents, some secret, some very secret, and I think one was top secret. He discovered a number of these documents, and it was an alarm- ing situation. He reported it to Major Van Beuren, and they went over to the State Department and said, “Look, here is a whole lot of your documents.” The State Department said, “It looks bad. ‘There has been a leak somewhere. Let's turn it over to the FBI.” They did turn it over to the FBI. The FBI put more and more men on surveillance of this office, on all people going and coming from the office, and on all people who had dealings with people who worked in the State Department. At one time I think there were about 75 FBI agents working on the case. It went on for months and months. The FBI, in my judgment, is one of the greatest bulwarks of democ- racy in this Republic. They are on the job. They are doing everything they can to keep democracy ahead of any sub- versive influence. When they saw what the situation was, they immediately thought that prevention would be better than any other course that could be followed. The thing to do was to stop it. In order to stop it they went in the office af Amerasia. I think they went there four or five times at night and made a thorough survey of everything there. Then they went into the apart- ments and offices of the people who had been identified with this nefarious enter- prise. I think it was on June 6 that orders were given to get the quarry. So this great mass of agents closed in and arrested six people. They held Philip Jaffe, the editor of Amerasia; a woman by the name of Kate Mitchell, who was arrested with him in the office of the magazine; 1 writer named Mark Gayne, who did not work for the maga- zire but worked for a leading periodical; a State Department employee, Emman- ual Larsen; a gentleman named John §. Service; and another individual, a naval heutenant named Roth. The case was taken before the grand jury in the District of Columbia in 1945, The first grand jury was about to re- cess, There were only a few days more for the grand jury to sit. I shall not go into all the details. It was thought that if more time were given to develop the case it could be made stronger, as it had some very weak elements in it. In another 10 days a new grand jury would come in, so they started the case before the new grand jury. The new grand jury heard all the evidence of the CONGRESSIONAL RECORD—SENATE FBI. Some 17 FBI agents testified. Three of the defendants waived im- munity and went before the grand jury, where they were given the “third de- gree” by the Government attorneys. The documents in the case were ex- amined. All the evidence was brought before the grand jury. When the grand jury finally voted, they indicted three of the defendants. ‘rmhey indicted Jaffe, the editor of Amerasia; Larsen, the State Department employee; and Roth, who was a lieutenant in the Navy. The other three were not indicted. Of the six per- sons arrested only two were connected with the State Department. They were Emmanuel Larsen and John Service. When the grand jury voted on Service they voted 20 to 0, or unanimously, not to indict. While the Government at- torneys were preparing the case for trial the attorneys for the defendants came to the Government attorneys and said, “Why don’t you settle this case?” The Government attorneys said, “No, we won't settle it.” In the meantime Emanuel Larsen, the State Department employee who was indicted, tricked the apartment-house manager into admitting that he had let the FBI into Larsen’s at night, or at an- other time, surreptitiously, without Lar- sen’s permission, without his knowledge, and without any search warrant or legal authority. Thereupon the attorneys for Larsen went to the District Court and filed what lawyers call a motion to quash and suppress the evidence on the ground that the evidence obtained was illegally obtained, and therefore violated the fourth and fifth amendments to the Constitution. In the meantime the at- torneys for Mr. Jaffe were in the De- partment of Justice. At that moment the clerk of the court in which the mo- tion to quash had been filed called up the Department of Justice attorneys and told them what had happened. Fearing that Jaffe would learn the evidence had been obtained illegally, they followed suit immediately and entered into an arrange- ment with him whereby he would pay a fine, I think, of $5,000. Thereupon they went down to the court and in due time Jaffe pleaded guilty and the court fined him $2,500. After that Larsen came in and pleaded nolo contendere. He was fined $500. All of us feel that the men who took part in taking documents, no matter what their character, whether they were secret, semisecret, top secret, or what not, ought to have suffered very severe punishment. I regret as much as anyone that the case did not bring more serious punishment to those who pleaded guilty or nolo con- tendere. But we have put in our re- port, for all to read, a long list of cases wherein the Supreme Court and the other Federal Courts held over and over again that evidence which is illegally obtained, that is, evidence which is obtained with- out legal authority, without a search warrant, cannot be used to convict a man, because the fifth amendment provides that no man can be compelled to bear witness against himself. If the author- ities had made the arrests of these men and had come upon the evidence in the course of their arrests, the plea which 10713 was entered would not have been good, according to Jaw. ‘This will seem like poor law to nonlawyers, and some of us who are lawyers quite often wonder if it is as good as the founders thought it to be. But it has a long history, into which I shall not go today, but there are many decisions of the courts which sup- port it. ° The fourth amendment of the Consti- tution provides: The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly de- scribing the place to be searched, and the persons or things to be seized. The fifth amendment reads: No person shall be held to answer for & capital, or otherwise infamous crime, un- less on a presentment or indictment of a grand jury, except in cases arising in the land or naval forces, or in the militia, when in actual service in time of war or public dan- ger; nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against him- self, nor be deprived of life, liberty, or prop- erty, without vue process of law— And so forth. I do not know how many cases can be found, but probably 50 or 60, in which the courts, even the Supreme Court of the United States, have uniformly held that if evidence is illegally obtained, without a warrant, in the premises of the accused, without his consent and knowledge, it is equivalent to making him testify unwillingly against himself. Whether that ought or ought not to be lam not arguing. That is the law, and that is what the courts have held. We have put in the REcoRD a number of cases so holding. In order that I may give an illustra- tion all will understand, it will be re- called that during prohibition days many people who had illegal possession of liquor got off because their premises were raided without search warrants. It was the universal defense. If the raiding officer broke into a place with- out a warrant and secured the evidence illegally by going into a man’s home, the fourth and fifth amendments were used in order that the individual might be cleared. That is the point, Mr. President. All of that does not amount to a row of pins so far as our duty is concerned. We were not charged with ascertaining whether the grand jury did right or wrong. We were not charged with find- ing out whether the Department of Jus- tice settled a case rightly or wrongly, per se. We were charged to find out whether persons in the State Depart- ment were disloyal, and we would say yes, they were. Emanuel Larsen was disloyal. He was indicted, he was fined, he was fired. The only other man the FBI said had any connection with the case was John 8. Service. The grand jury voted 20 to 0 that he had not intentionally com- mitted any wrong, and the Senator from Massachusetts and the majority of the committee both say that so far as we are
10714 concerned no evidence was adduced to show that Service was disloyal to his Government. All the committee mem- bers who have spoken on that phase of the case have reached a similar verdict. Mr. President, I now wish to say some- thing further to show what a fair deal we got in the press, and one of the newspapermen to whom I am referring is sitting in the gallery now. He wrote every day about the Amerasia case. Of course, our hearings were in executive session, and he could no more know what evidence we were adducing than the wall of the Senate Chamber could know it. One day I read this account: Here is this committee going at this thing all wrong again. Why don't they call the lawyers that prosecuted the case? Then there was a tirade about the way we were conducting the hearing. At that every moment the lawyer who was prosecuting the case was on the stand behind closed doors, while we were being berated for not calling him. Another story to this effect went over the air: If Senator Typines wants to find out, ladies and gentlemen, what jis wrong with the Amerasia case, why doesn’t he call General Donovan and General Pat Hurley? I called them. General Hurley said: It all happened while I was out of the country. I don't know anything about the Amerasia case That did not square me with the peo- ple who heard the broadcast, Then we sent up to see what General Donovan had to say, and he stated: I cannot tell you anything about it other than what Mr Van Beuren told you. Mr. Van Beuren did not tell us any- thing that would help us in any way at all, in my opinion. Mr, President, that is a sample of the stuff. There was the grand jury in New York, and the headlines were comment- ing on the hearing. Nobody knew what our committee was doing, because the hearings were behind closed doors. Yet some were saying, “Why are you wait- ine and not doing this and not doing that?” And they did not know what they were talking about. Finally, the case was whipped up to such a point that it went to the grand Jury in New York. I turned on the radio one night and listened to a commenta- tor. He is oneI like to hear. He said: Ladies and gentlemen, this i. a great coun- try ‘You cannot stop America Whenever there is something wrong, sooner or later it will come out My, it must make your hearts feel good tonight to hear that after this Amerasia case has blackened the pages of our country, the guilty in that sorry and sordid story are to be brought to justice. In New York, the run-away grand jury— Listen to that language “run-away’—~ has at last taken hold of this enterprise, which now you will find out about. Night after night the run-away grand jury was being headlined over the front pages of the papers, great headlines, and editorials. You can't trust Congress. They are a sorry lot of politicians. CONGRESSIONAL RECORD—SENATE Even some of the politicians agreed with that, showing their estimate of themselves, rather than of their fellows. For days and days and days old Amer- asia was riding on a run-away grand jury train. Finally, what happened? The great run-away grand jury brought in a unanimous verdict that there had been nothing remiss in the handling of the Amerasia case, so far as they were able to learn tn the time in which they had to consider it. Did that satisfy the critics? Immedi- ately a resolution was offered by the Senator from Indiana. He rose on the floor one day and spoke about “White- wash, Inc.” He had a field day in the Senate. I was in a hearing at that time. Someone said, “You had better get to the Senate floor. Senator Jenner {s tear- ing you to pieces. Go down.” I said, “Y don’t care.” I did not go. About a half hour later I came into the Chamber and heard the tail-end of the Senator’s speech. He was so sorry about the Senator from Maryland, poor fel- low that I was. Talk about reflecting on a Senator. I was going to white- wash. I was going to keep the spies in the State Department. I was going to keep the wicked Communists here and sell my country short. I want to say to the Senator from Indiana that I have been in some pretty hot places since my boyhood. I have been in some pretty hot places on battle- fields, where real men have been killed. I do not want to be personal, but I can think of one or two times when I do not believe there are many men in the world who had a closer shave than I had, If Senators read my biography—I say this though I do not want to be with- out any modesty—they will find a faint hint there that General Pershing gave me the highest awards this Government has to give, which I can wear on my breast. I do not believe the Senator from Indiana can beat that. But the Senator from Indiana was worried about the company I was in. Well, I found that the junior Senator from Indiana is in company that I never associate with. I find that Joe Stalin and the Daily Worker and the Senator all vote the same way. I am really going to read the record, because I do not want this little side issue to go un- noticed, particularly when the Senator was so kind, while I was working carry- ing on two jobs at once, to take care of me during my absence. Mr. CAPEHART. Mr. President, I rise to a point of order, to call the Sen- ator to order under rule XTX for imput- ing improper motives to a Senator. The PRESIDING OFFICER The Senator from Maryland will take his seat. (Mr. TYDINGS took his seat.) Mr. HOLLAND. Mr. President, I move that the Senator from Maryland be al- lowed to proceed in order. The PRESIDING OFFICER. The question is on the motion of the Sen- ator from Florida. {Putting the ques- tion.] The ayes have it, and the Sen- ator from Maryland will proceed in order, [Laughter.] JULY 20 Mr. TYDINGS. Mr. President, I have in my hand an editorial or statment by Mr. William Z. Foster, noted Communist, writing in Political Affairs. He advo- cates as the major point, it seem to me, reduction of the Marshall-plan aid, and the cutting of the arms budget for the Atlantic Pact countries, and so forth. These are issues around which the masses can be rallied. I find that when it comes to cutting the arms aid, und cutting the Marshall-plan aid, the Senator from Indiana has a wonderful record. He has voted against the Marshall-plan aid, He has voted against the North Atlantic Security Pact. He has voted against the arms implementation of it, the arms aid to the North Atlantic Pact countries, until the other day when Korea was in- vaded. Then he thought it was a good idea to get a few guns over there. Mr. JENNER. Mr. President, will the Senator yield? Mr. TYDINGS. I yield. Mr. JENNER. Is not the Senator from Maryland the same Senator who with a bleeding heart has made impas- sioned statements in the past 2 months on what we must do to disarm? And is it not true, in view of what has hap- pened !n Korea, that the Senator, who is at the head of the Armed Services Com- mittee, has almost had his way? It looks like the Senator is having his way. Mr. TYDINGS. I thought the Senator from Indiana would get around to that. I never advocated, as the Senator knows, that America disarm. I have been a proponent of universal proportionate disarmament, with proper inspection, before, during, and after World War II. If we had had that, no nation now would be in a position to fight us, I coupled with that, that the United Nations should have a police force. But I am not going to be diverted by questions as to my record. I did not in- terrupt the Senator when he spoke. I sat and enjoyed his tirade, because I knew that, faced with disaster abroad, the Senator had voted against every pro- gram that had been put forward to build up democracy and hold back commu- nism. While Joe Stalin was hollering “this is warmongering” and so on, and the Daily Worker was holding forth, I looked up the Senator's votes, and here they are, one after the other, always, always, always, following the same thing that Stalin is saying, that the Daily Worker is saying, and the junior Senator from Indiana is saying. Mr. CAPEHART. Mr. rise to a point of order. Mr. TYDINGS. That is no reflection on the Senator from Indiana. It is merely the truth. Mr. CAPEHART. I move that the Senator from Maryland be required to take his seat The PRESIDING OFFICER. The Senator from Maryland will take his seat. (Mr. TYDINGS took his seat.) Mr, MAYBANK. Mr. President, I move that the Senator from Maryland be allowed to proceed in order. The PRESIDING OFFICER The question is on the motion of the Senator President, I
1950 from South Carolina that the Senator from Maryland may proceed in order. {Putting the question.) The ayes have it, and the Senator may proceed in order, (Laughter. ] Mr. TYDINGS. I am not going to read them all. Amendments to cut, amendments to eliminate, amendments to restrict everything we have had up, until the other day, and then at long last, when Old Joe, with his supertanks, was coming down over the thirty-eighth parallel in Korea and our few American boys were falling back with almost nothing, the Senator and some of his collsagues who vote as he does, who had been hollering against Harry Truman and the Democratic administration, be- fan to be for the Marshall plan, for the North Atlantic Pact, and for arms aid, whereas they had consistently been vot- ing against all that. Mr. President, I do not think anyone on this floor is going to deny that all this time the Senator from Maryland has been here day after day, week after week, month after month, battling for wind tunnels, battling for the Central Intelligence Agency, battling for Army housing, battling for an Army pay bill, battling for various Army bills, battling for experimental submarines in an effort to get our country into such shape that it would be prepared for any emergency, and that he has also traveled all over the world trying to secure first-hand in- formation. When the Senator from indiana tries to put me in a class—well, I guess I had better not say that. I will leave it hang- ing in the air and let everybody draw his own conclusion. Now, Mr. President, and Members of the Senate, that is not all the story. I have more records than this one. Do not think this is the only one I have. I have more of them. Now where is the white- wash? The House Judiciary Committee went through the whole grand-jury proceed- ings in the Amerasia case, and we had all their reports before our committee No Member of the House of Represcnt- atives said they had whitewashed. We had all the proceedings of the grand jury itself? which investigated the case. We had all the evidence of the FBI. We had Forrestal’s diary. We had a statement from Mr. Justice Clark. We had a state- ment from Judge Proctor. We have all the testimony of the FBI. I asked the FBI witnesses: D> you know in any manner, shape, or form, by anbody, anywhere, any time, any- how, of any undue influence that was brought to bear on any Government agen- cies, officers, attorneys, or what-not having to do with this case to stop it or fix it? Anewer. No, sir. Did you get every man in the State De- partment that you think had anything to do with letting these documents out? Not who you know, but who you think? Answer. Yes, sir; we got everyone of them. Did you put men in the State Department to look around under cover and try to find out how these documents were getting out? Yes, sir. Did you get anybody at all? No, sir, CONGRESSIONAL RECORD—SENATE Did you see any documents passing from & State Department man to anybody on the outside? No, sir. Did you see any documents going to the representative of any foreign government? No. sir. Are you certain that you turned over to that grand jury all the evidence that you had? Yes, sir. Where is that evidence? I put them over the jumps every way I knew how to ask the questions. And if anybody thinks that was a whitewash, those who were asked the questions do not think so. They said when they got out of there that there was very little that anybody could ask that I had not asked them, And all the time the whitewash cry was going on by Mr. Woltman, he neglected to tell his readers that he is being sued for libel in the Amerasia case, and was using Us as a means of trying to secure evidence for his own personal benefit. Mr, CAPEHART. Mr, President, will the Senator yield for a question? Mr. TYDINGS. I yield for a question. Mr. CAPEHART. Was the Senator from Maryland or the subcommittee able to find out who did steal the 1,700 docu- ments? Mr. TYDINGS. I do not understand the Senator. Larsen undoubtedly had been one of the men—he admitted it— who had taken them. Who else took them the FBI did not know. Mr. CAPEHART. In other words, it was proved that Larsen took the 1,700 documents, was it? Mr. TYDINGS. And he was indicted; he was fined; he was kicked out. The FBI had nothing on Service. The grand jury voted 20 to 0 not to indict him. He has been cleared by four loyalty boards; he had been cleared by the grand jury; he has been cleared by a House Judiciary Committee; he was cleared by the New York grand jury; and now he is cleared by the Senator from Massachu- setts, the Senator from Rhode Island, the Senator from Connecticut, and the Senator from Maryland. That is fairly good clearance. If there is any white- wash here, as has been alleged, again I say this committee is in rather good, high-toned company. First of all, there is the House Judiciary Committee; then there is the Federal grand jury; then there is the Eightieth Congress, during the term of which+the gentlemen on the other side of the aisle had two long years in which to go into this case, short- ly after it happened; but they did not do anything about it then, although they raised it again, with us, 5 years after it happened. There is also the recent New York grand jury; and then there is the FEI testimony. By the way, Mr. President, I wish to have this testimony printed; I am more anxious to have it printed than I am to have the committee report printed, be- cause the testimony shows the full extent to which the committee went to dig up every bit of the evidence. When my good friend, the able Senator from Massachu- setts [Mr. Lona], says that the report has been superficial, I should like to call 10715 to his attention the fact that he was not at the subcommittee meetings all the time when we were getting the testi- mony on the Amerasia case. I do not mean that the Senator from Massa- chusetts was deliberately away, but a part of the time he was in Europe on a mission. So he was not in the subcom- mittee when we adduced a great deal of the testimony. Mr. LODGE. Mr. President, will the Senator yield? Mr. TYDINGS. I yield for a question. Mr, LODGE. I wish to ask the Sen- ator whether he will permit me to say that tomorrow I shall seek recognition in order to rectify a number of inaccu- rate statements which have been made about my position on various matters; but I shall not attempt to interrupt the Senator in order to comment upon them today. Mr. CAPEHART. Mr. President, will the Senator yield? Mr. TYDINGS. I yield for a question, Mr. CAPEHART. Is the Larsen to whom the Senator referred a minute ago the Larsen who is referred to in the re- port? Mr. TYDINGS. Yes, Mr. CAPEHART. I should like to ask another question: Was the committce able to find any Communists in the State Department or in any other Department of the Government? Mr. TYDINGS. First of all, as I shall review again, the business of hunting spies and the business of hunting Com- munists is primarily the business of the FBI, one of the finest investigative or- ’ ganizations in the world. If the Senator from Wisconsin had anything, that was the place to go; that was the organiza- tion to which to turn it over. The fact that the FBI has had all the information and all the material about which the Senator from Wisconsin has talked, plus everything we could adduce, and that, nevertheless, the FBI’s investigation shows that there is a complete lack of proof of the alleged big spy ring and of the alleged 205 card-carrying Commu- nists, as the Senator from Wisconsin al- leged in his speech at Wheeling, W. Va., is fairly good proof in my book that the Senator from Wisconsin was entirely in error, to say the least. Mr. CAPEHART. Mr, President, will the Senator yield further? Mr. TYDINGS. I yield for a question. Mr. CAPEHART. Was the Senator or was his subcommittee able to find any Communists who had been in the State Department? Mr. TYDINGS. We investigated every case which came before us; and neither the three Senators who have signed the majority report nor the Senator from Massachusetts nor, so far as I know, the Senator from Iowa have said that any of the charges have been proved. Mr. CAPEHART. Then is it the Sen- ator’s answer that he and his subcom- mittee were not able to find any Com- munists who had formerly been em- ployed in the State Department? Mr. TYDINGS. We found the same thing that the four separate committees
10716 of the Republican-controlled Eightieth Congress found. Mr. CAPEHART. The Senator from Maryland and his subcommittee did find the Hiss case; did they not? Mr, TYDINGS. No; the Hiss case was before the loyalty program was put into effect. Mr President, of course, a rather good technique has been followed, namely, always to work in the name of His». That is always done; his name is always brought in, in some way or other. Mr. President, there is no one who looks upon a traitor with more disgust than do the members of this subcommit- tee, whether on the Republican side of the aisle or on the Democratic side of the aisle. However, the Hiss case was not our job. Hiss already is out; he has already been convicted, and his case is in court Mr. CAPEHART. The resolution under which the subcommittee was oper- ating calls for an investigation as to whether persons who are disloyal are employed by the United States or have been employed by the United States, does it not? Mr TYDINGS. Yes. We thought of going back and getting Thomas Jeffer- son on the stand, but I did not know whether my memory would be clear about my boyhood that far back [Laughter } Mr. LUCAS and Mr BREWSTER ad- dressed the Char The PRESIDING OFFICER. Does the Senator from Maryland yield, and if so, to whom? Mr. TYDINGS. I yield to the Senator . from Tilinois Mr, LUCAS. Mr. President, I should like to ask the Senator if the following is a correct statement: The Democratic Policy Committee drafted the resolution for this investigation upon the theory that the Senator from Wisconsin had di- rect information from informants 1n the State Department—as was said over and over again in the speech the Senator from Wisconsin made on the floor of the Senate? Mr TYDINGS. Yes. Of course, I have read in parallel columns how the 81 cases which formerly had been exam- ined were reread with slight alterations by the Senator from Wisconsin as if they were new matter That is what precipi- tated this investigation, and that 1s what we thought we were going to investigate when the subcommittee was formed. Then I found that four separate com- mittees of the Republican-controlled Eightieth Congress-—-and I say that with- out any reflection on them, but simply in order to show that those committees were not of the same political complexion as ig the present majority of the subcom- mittee—had examined every one of those cases, and had not found any Commu- nists or subversives in any of them. All that is shown by the exhibit now hanging on the wall, the chart to which I have referred to as “behind-the-eight-ball chart,” the chart which shows the names of the four committees in the Eightieth Congress, one Republican Member of the House, two Republican Senators, and the CONGRESSIONAL RECORD—SENATE Fightieth Congress itself, all of whom found no Communists or subversives in any of these cases, although those com- mittees and Members of Congress and the Eightieth Congress itself now are charged with having made a whitewash. Mr. LUCAS. Of course, the Senator from Maryland knows, does he not, that the 81 cases he had to consider were the same as those which had been examined by the four committees in the Eightieth Congress to which he has referred? Mr. TYDINGS. That is correct. Of course, some may not have realized that they were the same, Mr. BREWSTER. Mr. President, will the Senator yield? Mr. TYDINGS. Mr. President, I will not yield now, for I wish to summarize my statement. I did not interrupt other Senators; I did not interrupt the Senator from Massachusetts {Mr. Loner], al- though I do not entirely agree with everything he said. However, I think he made a rather fair presentation of the matter, as he has had the facts. I am sure there are many facts 1n this connec- tion with which he is not familiar, in- cluding the testimony which has been taken. Incidentally, Mr. President, let me say that I wish to have the testimony printed. I think it is most important that it be printed, so that it may be con- sidered in connection with the commit- tee’s report. In the testimony there are 3,000,000 words—think of that, Mr. Pres- ident—3,000,000 words, on 4,000 pages. Mr. BREWSTER. Mr. Fresident, I am sure the Senator—— Mr. TYDINGS. Just a moment, Mr. President; I have not yielded, and I shall not yield until I take my seat. The PRESIDING OFFICER. The Sen- ator from Maryland declines to yield. Mr. TYDINGS. I now wish to sum- marize, Mr. President: Where are we? What a farce this has been, what a hoax, what a fraud, what deceit—for the Senator from Wisconsin to go to West Virginia and state that there are 205 card-carrying Communists in the State Department and that there is a spy ring in the State Department— a charge coming from the lips of a United States Senator—and then over- night to reduce the number thus charged, and to say that the correct number is 57: and then to return to the floor of the Senate and make the same specch, paragraph by paragraph, with that one paragraph changed, although even with that change the facts are not at all in line with the charges made-—and uttered with his voice—by the man who is making these wild charges to the people of the United States. Mr. President, one simply cannot beat @ man’s voice. We can have all the demals we want, we can have all the explanations we want; but there is the voice, nevertheless. It cannot be brushed down, and it is not the voice of truth. All one has to do is to read the state- ment in the ConcresstonaL Recorp and listen to this recording in order to know that there is not truth in both those statements. We have the affidavits of the radio people, we have the newspaper JuLY 20 clipping, we have the letter of the news- paper publisher; we have the record in Salt Like City, we have the record in the Reno State Journal, and we have the statement of the Senator from Wiscon- sin on the Senator floor. We have the 81 cases in this folder—and here they are, in parallel columns. This is what the folder says; this is what Senator Mc- Cartuy said. They are the same cases that have been reviewed by four separate committees of the Republican-controlled Eightieth Congress. I defy anyone to say that that remark cannot be proved. Who says it? Then what is there other than a fraud and a hoax and a dcceit about this whole matter? It ought to make the blood of Americans boil, that they have been told these foul and vile charges—and here is a recording to prove it. And if that is broken, I have dupli- cates. [Laughter.] I am not going to talk about Amerasia anymore. The only other man in the State Department who the FBI says was involved in this, that they know about, was John 8S. Service. He came out of the grand jury room with a vote of 20 to 0 against an indictment. He had been cleared by four separate boards. He has been cleared by the House Judiciary Committee, which investigatec the case 2 years ago. He has been cleared by the New York grand jury of 1950. He has been cleared by the Senator from Massa- chusetts [Mr. Lopce] and the three Members on this side of this subcom- mittee. He is the only other man men- tioned in this entire case. Now, what are Senators going to do about it? Do they want to take the word of the FBI? Any Senator may come to my office. I have had all the copies cata- loged so that it is possible to turn to any of them I hope it will be made a public document. I will give to any Senator all the grand jury proceedings. I have those. More than that, I will give him the proceedings of the four Republican committees which examined the 81 cases. I have got most of those. Now, has a fraud, has a hoax, has de- ceit been practiced on the American people? In Korea, as the Senator from Wisconsin says, brave Am-crican boys stand between freedom and slavery, be- tween 9 Godless nation and Christianity, between democracy and dictatorship. There they stand, outnumbered, quickly thrown in to meet a superior foe, but fighting with that good old American courage which in the face of odds carries on to victory. And while that is going on, the people at home—their mothers, their wives, their fathers, their brothers, their sisters, their children—are told that there are 205 card-carrying Com- munists in the State Department and a spy ring known to the Secretary of State, and that we will not do anything about it. Wonderful! The news comes, “Sorry to inform you that your husband was killed in action on such and such a date in Korea.” Headlines appear in the press, “Latti- more is the chief architect of our far eastern policy, the top Red spy in our Government.” Even the Senator from
1950 Massachusetts, whose fairness in this matter has been outstanding, on the whole, as perhaps none of us could be 100 percent fair, said, “That is not true”; and if he, from the opposite side of the aisle, says it is not true, where does that leave the Senator from Wisconsin and the boys in Korea, about whom he shed so many tears in his news release? Mr. LODGE. Mr. President, will the Senator yield? Mr. TYDINGS. Yes; I yield for a question. Mr. LODGE. I do not wish to ask a question. I wish to make a statement. Mr. TYDINGS. No, I do not yield for a statement. I did not interrupt the Senator. Ah, me. Yes, the position of a United States Senator is a great position. There is not a man here that I know of who has wings. There is no one here who is perfect. back on a life without some regret at some incident or happening that we wish had been otherwise. Certainly I should be the last to demand a heart so clean that. the mortal would be likened more to an angel than to a Senator. I know we are human. I know we have faults. I know we have weaknesses, But, Mr. President, faults and weaknesses and failings are one thing: a deliberate cam- paign founded on such loose threads and sketchy and hashed-over and worn-out evidence and facts such as these, at a time of great international peril, is an- other thing. If this body has any real idea of maintaining its integrity before the people of America and the Armed Forces of the United States, we might well ponder this report and might well ponder those facts, If Senators are still in doubt, let them read the Recor of last February, then come over and listen to me play my little Victrola. They will learn who has been whitewashing— whitewashing with mud, whitewashing with slime, whitewashing with filth, whitewashing with the dregs of publicity, at the expense of the love of the people for their own country. I do not want to become sentimental. I remember that a long time ago, when T first went to France, I was a machine gunner, and I had no machine gun. We had hewn logs of wood. I was a cap- tain in those days. We would go into the field every day with our logs. We drilled, and we went back. And how we used to ask what the Congress of the United States was doing at home. We finally got some machine guns. Many men who died would have lived had we gotten them sooner, for we would have learned how to handle them and how to take care of ourselves. I know a little some- thing about what the soldier feels, One or two of them have written me. They cannot believe, they have been good enough to say, that I would intentional- ly keep a spy in the State Department, that I would keep a Communjst there, when our own men are dying. I have tried to tell them that we are not doing that. But they say, “It is pretty tough out here to carry on, under the odds we are fighting against, when we know that XCVI-——675 I suppose none of us can look’ CONGRESSIONAL RECORD—SENATE our families think and hear and often believe that our Government does not care anything about us, and it is all a mess of spies and traitors.” Yes, I know it. Iam going to ask the Senate what is it going to do about it, if it finds that these charges have been sent out to the men and to the families of the men who are fighting and dying, and that there is not an ounce of truth in the charges so far as any evidence that comes from the accuser is concerned. I have been asked whether I intended to bring in a resolution on this or that. I have said, “No, I am going to bring the truth to the Senate and to the American people. Let someone else find the rem- edy.” I might act as a prosecutor, un- intentionally, in order to get the truth to this body and to the American people. I have made no attack on the Senator from Wisconsin. I have simply dealt with the facts as they exist in this case and have taken the very file which he said would prove his case and which the Sena- tor from Massachusetts, at least by his silence, agrees does not prove the case, a file which was examined by Republican Members in control of the Eightieth Con- gress, and they did not say the case was proved. As for Owen Lattimore, the Senator from Massachusetts, and the whole com- mittee, so far as it has spoken, say that the charges are not supported by the facts. We had access to the files of the FBI on this matter. Mr. President, there are the facts for the Senators to ponder. I have no rem- edy to suggest. I return the matter to the hands and the consciences of the Members of the Senate as we think of men and events in one of the most criti- cal hours in the history of this Republic and of the freedom of mankind on this planet. STATE DEPARTMENT EMPLOYEE LOYALTY INVESTIGATION—PRINTING OF SENATE REPORT NO. 2108 Mr. TYDINGS submitted the following resolution (S. Res. 314), which was re- ferred to the Committee on Rules and Administration: Resolved, That the Committee on Foreign Relations be authorized to have printed for its use 4,000 copies of Senate Report No. 2108, @ report pursuant to Senate Resolution 231, Eighty-first Congress, second session, a reso- lution to investigate whether there are em- ployees in the State Department disloyal to the United States, and that an equal number of the supplemental views submitted by Mr. Lopce be also printed. INTERIM OPERATION OF TIDELANDS OIL LEASES Mr. O’MAHONEY. Mr. President, this afternoon I introduced Senate Joint Resolution 195 dealing with the sub- merged lands of the Continental Shelf, commonly called the tidelands. I pre- pared a statement which I released to the press in explanation of that resolu- tion. I now ask unanimous consent that the full text of the statement and the full text of the joint resolution be printed in the body of the Recorp. There being no objection, the Joint resolution and the statement were 10717 ordered to be printed in the Recorp, as follows: Senate Joint Resolution 195 Joint resolution to provide for the cantinua- tion of operations under certain mineral leases issued by the respective States covere ing submerged lands of the Continental Shelf, to encourage the continued develop- ment of such leases, to provide for the pro- tection of the interests of the United States in the ofl and gas deposits of said lands, and for other purposes Whereas certain mineral] leases on sub- merged lands on the Continental Shelf were issued by Coastal States under claim of own- ership by such Issuing States, and lessees have expended large sums of money in con- ducting operations under such leases; and Whereas the Supreme Court of the United States on June 23, 1947, rendered an opinion in the case of United States v. California and on June 5, 1960, rendered opinions in the cases of United States v. Louisiana and United States y. Texas, holding that the United States has paramount rights tn, and full dominion and power over, the submerged lands of the Continental Shelf adjacent to the shores of California, Loutsi- ana, and Texas, and that the respective States do not own the submerged lands of the Continental Shelf within thelr bound- aries; and Whereas it 1s in the national interest and important to national defense in the prosent emergency that the orderly development of the oil and gas deposits in the submerged Jands of the Continental Shelf should con- tinue without interruption, and it is not feasible at the present session of Congress to enact permanent legislation covering the ex~- ploration, development, production, and con- servation of the of] and gas deposits in the submerged lands of the Continental Shelf, thus making it essential that this resolution be enacted in order to protect the interests of the United States and permit continued de- velopment under existing leases pending the enactment of permanent legislation by the Congress respecting the submerged lands of the Continental Shelf: Therefore be !t Resolved by the Senate and the House of Representatives of the United States of America in Congress assembled, (a) That any person holding a mineral lense covering submerged lands of the continental shelf is- sued by any State or political subdivision or granteo thereof prior to December 21, 1948, or'so issued subsequent thereto with the ap- proval of the Secretary, which ts, on the ef- fective date of this resolution, in force and effect in accordance with the terms and pro- visions of such lease and the law of the State issuing it, may, subject to the provisions of this resolution, continue to operate in ac- cordance with the terms and provisions of such lease. (b) All rents, royalties, and other sums payable under such a mineral lease uofter the effective date of this resolution, or, as to a Jease issued by the State of Louisiana or the State of Texans, payable after the entry of a decree by the Supreme Court of the United States in the case of United States v, Louisiana (Original No, 12, October term, 1949) or United States v. Texas (Original No. 18, October term, 1949) if the decree is ad- verse to the defendant's claim of proprietary rights tn submerged lands of the continental shelf, shall be paid to the Secretary, who shall deposit them In a special fund in the Treas- ury pending the enactment of legislation by the Congress concerning their disposition. (c) With respect to any mineral lease that fe within the scope of subsection (a) of this section, the Secretary may, after the effective date of this resolution, or, as to » mineral lease issued by the State of Louisiana or the State of Texas, after the entry of a decree by
10718 the Supreme Court of the United States in the case of Untted States v Louisiana (Orig- inal No 12, October term, 1949) or in the case of United States v. Texas (Original No. 18, October term, 1949) if the decree is ad- verse to the defendant's claim of proprietary rights in submerged lands of the continental ghelf, exercise such powers of suporvision and control as may be vested in the lessor by the terms and provisions of the lease. £ec. 2. The Secretary is authorized, upon the application of any person holding a mineral lease issued by or under the au- thority of a State on tidelands or submerged lands beneath navigable inland waters within the boundaries of such State, to certify that the United States does not claim any pro- prietary interest tn such lands or in the mineral deposits within them Sec. 3. In the event of a controversy be- tween the United States and a State as to whether submerged lands held under min- eral leases iseued by or under the authority ot tho State ale submerged lands of the Con- tinental Shelf or submerged lands beneath navigable inland waters, the Secretary is authorized, with the concurrenc? of the At- torney General of the United States if the controversy 1s being litigated, to negotiate with the State an agreement respecting the continuation of operations under such leases pending the settlement or adjudication of the controversy. Bec 4 (a) In order to meet the urgent need during the present emergency for fur- ther exploration and development of the oll and gas derosits in the submerged lands of the Continental Shelf, the Secretary is au- thorized for a period of 3 years from the ef- fective date of this resolution, or, as to sub- merged lands of the Continental Shelf within the boundaries of Louisiana or Texas, for a period of 3 years after the entry of a decree by the Supreme Court of the United States in the case of United Statcs v. Loutmiana (Original No 12, October Term, 19/9) or in the case of United States v Tetas (Original No. 13, October Term, 1949) if the decree is adverse to the defendant's claim of proprie- tary rights in submerged lands of the Conti- nental Shelf, to grant to the qualified persons offering the highest bonuses on a basis of competitive bidding oil and gas leases on submerged lands of the Continental Shelf which are not covered by leases within the scope of subsection (a) of section 1 of this resolution. (b) A lease issued by the Secretary pur- guant to this section shall cover such area as the Secretary may determine, shall be for @ period of 5 years and as long thereafter as oll or gas may be produced from the area in paying quantities, shall require the payment of royalty at the rate of 121% percent, and shall contain such rental provisions and such other terms and provisions as the Secretary may by regulation prescribe in advance of Offering the arca for lease (c) All moneys paid to the Secretary for or under leases granted pursuant to this section shall be deposited in a special fund in the Treasury pending the enactment of legisla- tlon by the Congress respecting tholr dis- position. Sec. 5, The Secretary is authorized to issue such regulations as he may deem to be neces~ gary or advisable in performing his functions under this resolution, Sec. 6. When used in this resolution, (a) the term, “submerged lands of the conti- nental shelf,” means the Jands (including the oil, gas, and other minerals therein) underlying the sea and situated outside the ordinary low-water mark on the coasts of the United States and outside the inland waters and extending seaward to the outer edge of the continental shelf; (b) the term “mineral lease" means any form of authori- gation for the exploration, development, or production of oll, gas, or other minerals; (c) the term “‘tidelands” means lands rogu- CONGRESSIONAL RECORD—SENATE larly covered and uncovered by the flow and the ebb of the tides; and (d) the term “Sec- retary” means the Secretary of the Interior. — STATEMENT BY SENATOR O’MAHONEY INTERIM OPERATION OF TIDELANDS OIL LEASES Believing that it is essential in the na- tional interest that there should be no inter- ruption of the development and operation of oi] deposits in the submerged lands of the continental shelf, I have today introduced a joint resolution providing for the interim de- velopment and operation of these lands. Petroleum is the essential fuel for all mill- tary operations—on land and sea and in the air. In the situation which now confronts our country in international relations noth- ing should be left undone to promote the development of petroleum resources in this country. The Supreme Court in the Louisiana and Texas cases handed down opinions on June 5 this year confirming the position which was taken in the decision of June 23, 1947, in the California case, reasserting the para- mount authority of the United States over submerged lands Formal decrees have not yet been handed down in the Loutsiana and Texas cases and the Congress hus not yet en- acted any of the bills now before it affecting these lands It seems to be quite impossible that any of these measures could be enacted at this session. If there is no legislation, the delay oc- casioned by the slow process of the issuance of court decrees and the determination of the applications of the States of Louisiana and Texus for rehearing would raise such obstacles to operation and development that the United States would probably be deprived of oil production from these lands at a time when it will be needed in the national in- terest. At the same time, both the States and the industry, as well os the people of the United States, would suffer My resolution in effect makes the Secre- tary of the Interlor a 1ecciver to administer all of the submerged lands except those undcr inland navigable waters. He will be authorized to receive all rents and royalties under existing leases and to deposit these sums In a special fund in the Treasury pend- ing final solution of the controversy by court action and congressional Icgislation Tho resolution does not attempt to settle any controversial issue but it does give the Secretary of the Interior authority for a pe- riod of 3 years after the entry of 8 decree in the Louisiana and Texas cases, to grant leases on submerged lands of the Continental Shelf which are not covered by existing State leases. Faliure to enact interim legislation of some Kind would precipitate very serious con- fusion at a time when the country can ill afford it. Section 1 of the bill provides that any lease of submerged lands issued under the author- ity of any State prior to December 21, 1948, and which ts in force and effect on the date of the resolution may continue to be oper- ated in accordance with the provisions of the State lease. All rents, royalties, and other sums payable under such a California lease or such a lease issued by Louisiana or Texas, if the decree sustains the position of the United States, are to be paid to the Secretary of the Interior pending the enactment of legislation by Congress providing for their disposition. This section also gives the Sec-~ retary all the powers of supervision and con- trol which are vested in the State under the terms of such leases, Section 2 authorizes the Secretary to cer- tify that the United States does not claim any proprietary interest in lands or mineral deposits in lands ‘beneath navigible inland waters within the boundaries of any State.’ Section 3 authorizes the Secretary of the Interior to negotiate an agreement with any JULY 20 State with respect to the operation of loaces which may be subject to a controversy as to whether they cover submerged lands of the Continental Shelf or submerged lands be- neath navigable inland waters If the United States is engaged in any Itigation involving such lands, the Secretary of the Interior is required to obtain the concurrence of the Attorney General of the United States Section 4 authorizes the Secretary to issue leases at competitive bidding but on a fiat royalty rate of 1214 percent for 5 years and as long as oil and gas may be produced on sub- merged lands which are not covered by State leases within the provisions of section 1(a). Receipts under such leases are als to be de- posited in a special fund pending future legislation. Section 5 authorizes the Secretary to issue regulations and section 6 contains the neces- sary definitions Iam distributing copies of the resolution to all persons who have indicated an inter- est in the matter and at an early date I shall call a session of the Committee on Interior and Insular Affairs at which the problem may be discussed. THE PRESIDENT’S PROGRAM FOR MEET- ING THE KOREAN CRISIS Mr IVES. Mr. President, at the out- set I desire it understood that I am not speaking on the question which has been under discussion this afternoon, I intend to speak on it, probably, to- morrow. Mr. President, when the Russian equipped and trained Communists from North Korea made their open aitack on the Republic of Korea on Sunday, June 25, they opened a new phase in world history. We had known that Soviet communism had its plans for world con- quest. But we had hoped that it would limit itself to methods short of open armed aggression. We had hoped that it would respect the principle, estab- lished by the United Nations Charter, that there should be no threat or use of force against the territorial integ- rity or political independence of any state. The unprovoked attack on the new Republic of Korea shows that these hopes were vain; it shows that the free world must now gird itself to meet the menace of armed attack at any time, at any place. The present struggle is not just a struggle between the United Nations and the Communist forces of North Korea. Neither 1s it yet a struggle between two great powers. It is everlastingly im- portant to keep these things clearly in mind. We are engaged in the age-old strug- gle of despotism against freedom This is a struggle which concerns all of the free world and calls for moral and, to the extent practicable, economic and military support from all who are en- gaged on the side of freedom. The United Nations has acted promptly, and decisively, to make this clear. Fifty-two nations have concurred in the Security Council finding of aggression and in its appeal to bring that aggression to an end. While all must help, the heaviest bur- den and the responsibility of leadership fall upon the United States, not because this is peculiarly our war, but because we have the unique capacity to contribute to & common cause. We have industrial productivity roughly five times that of the Soviet Union. We are the onlv ona
1950 of the free nations which possesses great industrial power and which also is free from grave economic dislocations of the Second World War. Long before the attack on Korea, many of us have felt that world conditions would not permit indefinitely a situation where Russia, in its comparative eco- nomic poverty, would continue to manu- facture planes and tanks on a scale which far outstripped that of the free world. The unbalance of power, created by this situation, was bound to tempt despots to action, as in Korea., I believe that the administration can be fairly criticized for not having re- sponded more quickly to these obvious world conditions and for not having pro- vided prevention in time. This, however, is not the moment for recrimination and for placing blame for past mistakes ahd present perils. Yesterday, in his message to the Con- gress and in his radio address to the American people, the President presented @ program of action which, in its broad outlines, is a forceful response to the challenge of Soviet communism and to the aggressive war now being conducted against the United Nations in Korea. It is a program which in principle justifies the general approval of the American people. It points the way by which we can and must present a united front at home to those who have already struck at indivisible freedom and who are poised to strike again and again unless our ac- tion gives them pause. In many respects the President's pro- gram is vague and needs important clar- ifications before legislative enactment. It is essential to our economic health that the additional expenditures pro-~- posed should not precipitate ruinous in-~- flation which in turn, by requiring broad price controls and rigid rationing would necessitate expensive and throttling bu- reaucratic regimentation of our whole economy. With wisdom, courage, and efficiency on the part of the adminis- tration, these additional expenditures can be made without crippling our economy, There must be frugality in the depart- ments of the Government not directly engaged in the present conflict. Ex- penditures for our nondefense activities must be cut to the bone. At the same time we must insist on prudent spending by the armed services, which in the past have been too often guilty of waste and extravagance. The critical need for efficiency in every part of our Federal Government is greater today than ever before. The implementation of the President’s program will be thoroughly discussed and debated later when concrete legisla- tion is before us for consideration. At the moment we can rejoice that the ad- ministration has awakened at last to the peril which has long stared us in the face. We can rejoice that the adminis- tration is demanding action which can provide the basis for national unity. Such unity in itself can be a moral factor of mighty force in the struggle to pre- serve freedom and to extinguish the present warfare in Korea before it spreads into the awful disaster of @ third world war. CONGRESSIONAL RECORD—SENATE STATE DEPARTMENT EMPLOYEE LOYALTY INVESTIGATION—PRINTING OF RE- PORT NO. 2108 Mr. HAYDEN. Mr. President, from the Committee on Rules and Administra- tion, I report favorably, without amend- ment, Senate resolution 314 submitted previously today by the Senator from Maryland (Mr. Typrnes] and I ask unani- mous consent for its immediate consider- ation, The PRESIDING OFFICER. The resolution will be read for the informa- tion of the Senate. The resolution was read, as follows: Resolved, That the Committee on Foreign Relations be authorized to have printed for its use 4,000 copies of Senate Report No. 2108, a report pursuant to Senate Resolution 231, Highty-first Congress, second session, & resolution to investigate whether there are employees in the State Department disloyal to the United States, and that an equal number of the supplemental views submitted by Mr. Longe be also printed. The PRESIDING OFFICER. Is there objection to the present consideration of the resolution? Mr. WHERRY. Mr. President, reserv- ing the right to object, and I am not going to object, I think I understand this perfectly. As I understand, it is Satisfactory to both the Members of the majority and also to the distinguished Senator from Massachusetts. Mr. HAYDEN. Yes. The effect ts that we can get about 4,000 copies in this way and save $600 or $700, because the reports would be printed anyway. It would be necessary to go to press again to get the additional 4,000 copies of the report. Within the $1,200 limit it is necessary to take this action. Mr. WHERRY. This is a simple reso- lution, which provides for the maximum mumber of copies to be printed. After these copies are printed, a concurrent resolution would have to be agreed to in order to get additional copies printed? Mr. HAYDEN. Yes. Mr. WHERRY. Will envelopes be printed for each report? Mr, HAYDEN. Envelopes are not printed for committee reports. The in- dividual views of the Senators from Massachusetts will be printed separately. Mr. WHERRY. Each Senator may obtain copies of the report and use his own franking privilege? Mr. HAYDEN. Yes. Mr, WHERRY. I have no objection. The PRESIDING OFFICER. The question is on agreeing to the resolution. The resolution was agreed to. GENERAL APPROPRIATIONS, 1961 The Senate resumed the considera- tion of the bill (H. R. 7786) making ap- propriations for the support of the Gov- ernment for the fiscal year ending June $0, 1951, and for other purposes. Mr. MAGNUSON. Mr. President, I should like to submit a unani{mous-con- sent request with reference to the ap- propriation bill. There are pending to the pending appropriation bill two very important amendments. One involves an appropriation of $25,000,000 to begin ship-repair work on certain ships des- ignated by the Joint Chiefs of Staff as 10719 a necessary part of any preparedness or war effort. The other amendment deals with can- cer, heart disease, and mental diseases, in the field of health and research grants. I have conferred with the Senator from New Mexico, and in view of the fact that these two amendments may cause a great deal of discussion, I ask unanimous consent that they be brought up after consideration of the appropria- tion bill is concluded. I ask that they be considered as the last amendments. Mr. WHERRY. Mr. President, will the Senator restate his request? My at- tention was diverted. Mr. MAGNUSON. I ask unanimous consent that what probably will be the two major amendments on the appropri- ation bill, one involving $25,000,000 for ship-repair work, to which 38 Senators are Opposed, and the other one, dealing with cancer research, and so on, to which another group of Senators is opposed, be considered last. Mr. WHERRY. Reserving the right to object, to begin with, the health re- search item is in chapter V, Labor- Federal Security. Mr. MAGNUSON. Yes; I have con- ferred with the chairman. Mr. WHERRY. The ranking minor- ity member is in California and he will not return until Monday or Tuesday of next week. It was my understanding that It was desired to take it up on Mon- day, and it certainly should be delayed until Monday or Tuesday. Mr. MAGNUSON. Yes. Mr. WHERRY. I hope the Senator will not ask for unanimous consent until I can take the matter up with the Sen- ator from California, Mr. MAGNUSON. I withdraw the request. Mr. O’MAHONEY. I should like to be heard upon one of the amendments. If I understood the Senator correctly the other amendment which he is offering, and for which he makes the unanimous- consent request, has to do with chapter VIII of the general appropriation bill, which covers certain independent offices and executive agencies. Mr. MAGNUSON. Yes. Mr. O’MAHONEY. I have not had an opportunity to examine the Senator’s amendment. Iam chairman of the sub- committee in charge of that chapter. Apparently it will not come up at least until after the Interior Department chapter has been disposed of. If the Senator from California should return before the Interior Department chapter 4s finished, then the Labor and Federal Security chapter would have the right- of-way. I therefore ask the Senator to withhold his request until tomorrow, to give me an opportunity to study it. Mr. MAGNUSON. I merely wished the statement to be on record that these amendments will cause a great deal of discussion. I think 30 Senators have signified their opposition. The PRESIDING OFFICER. Does the Senator withdraw his request? Mr. MAGNUSON. I withdraw my re- quest.
10720 ECONOMIC PREPAREDNESS Mr. O’MAHONEY. Mr. President, on July 18 I sent a memorandum to the members of the Joint Committee on the Economic Report. With the memoran- dum there was a statement which had been prepared by the staff of the joint committee at my request. Because the economic aspect of our international operations is of very great importance I ask unanimous consent that this memo- randum, together with a statement of the necessity for preparedness taxation may be printed at length in the body of the REcorD. There being no objection, the state- ment and memorandum were ordered to be printed in the Recor», as follows: EcoNOMIC PREPAREDNESS Is ESSENTIAL Mr President, we know now that modern war is total war and that the nation that succeeds in modern warfare is the nation with the strongest economy, as well as the greatest military skill. Success for the United States in the pres- ent international dilemma depends upon (1) the awareness of our people of the fact that Soviet Russia is the head and center of a world revolutionary movement which plans by force and deceit to destioy all rival governments, (2) the willingness of the American people to contribute their sub- stance to pay the economic costs as well as the military costs of total warfare. It has been the policy of the United States, and still is, to establish world pesce. To this end it has contributed through the Marshall plan to the economic rehabilitation of Europe, and through the Truman policy to the containment of communism. By supporting Greece and Turkey and by pro- moting the unton of democratic nations through the North Atlantic Pact and the Western Hemisphere Pact, it has made the free nations of the world more able to resist aggression. It is evident now that the Soviet Govern- ment, through the use of the veto in the United Nations, through the confusion it has sought to create by the activities of Com- munist Party members everywhere, and through localized acts of aggression, such as those at Trieste and Berlin, now ripening into actual aggressive warfare in Korea with Soviet-trained soldiers and Soviet-bullt ma- chinery, 1s determined not to permit the world to return to the ways of peace The United States must continue, through the United Nations, to mobilize the moral forces of the world against these aggressive tac- tics of Russia, but at the same time must jaunch an intensified program of military and economic preparedness The question which must be answered by all our people is* How much we are willing to contribute of our personal economic re- sources to the winning of this struggle? We cannot hope to make the military effort suc- cessful without an all-out economic effort. We know now that the lessons of World War I were not used in preparation for World War II, We cannot afford to make the samo mistake sgain of a soft approach to the hardest problem this Nation has ever faced. When World War II began, the United States had a national debt of less than 9$49,- C00,000,000; the national debt today 1s $257,- 000,000,000. The debt has reached this pro- portion because we did not have a pay-as- you-go policy for the war. Only 45 percent of the money costs of that conflict was raised by taxes The rest of it—55 percent—was postponed to the future through the issu- ance of bonds. Whatever new expenditures are undertaken now will have to be paid for either through taxos or through another in- crease in the national debt with consequent inflation. The Kremlin expects this country CONGRESSIONAL RECORD—SENATE to take the easy way out, that is, to hold taxes down and to trust that somehow, some time in the future the debt will be paid. Russia is counting on us to bring about our own fiscal collapse by our failure to support necessary military outlays by increased taxes. Congress is ready now to approve increased military expenditures Such appropria- ations should be accompanied by 4 tax bill which will finance the expense without in- creasing the debt. Fortunately, it will be much easier to do this than would at first appear Mulitary expenditure will increaze production; pro- duction will increase the tucome of the peo- ple and a portion of this increased income turned into defense channels by a prepared- ness tax law would make it possible to avoid another increase of the national debt. Higher taxes would have another beneficial effect. They would constitute an effective substitute for rigid economic controls. In Wold War II we kept the tax rates lower than they might have been Rigid controls were therefore necessary, though we were unwilling, in the use of controls, to freeze prices, wages, and profits across the board. Higher taxes now to meet the increased ex- penditures which everyone believes tnevi- table will reduce the money available for civillan purchases and will thus operate to divert industrial production from civilian commodities to military commoditics. A preparedness tax bill would enable all the people to contribute the buying power nec- essary to finance the concentrated military production required for the preservation of the free world For some time to come we as a people will have to be willing to buy fewer automobiles and more tanks. At my request the staff has made a review of tho present economic situation involv- ing recommendations as follows: 1 Balance the cash budget. Federal ex- penditures should be held to the minimum, particularly those not directly connected with military requirements and vital eco- nomic eapansion. Once the expenditure p10- gram for the next fiscal year has been en- acted, the Congress, after conservatively csti- mating the increased yield in taxes likely to result from increased levels of business ac- tivity, should increase governmental reve- nues by enough to balance the cash budget. 2. Restore consumer credit control 3 Authorize allocation machinery for crit- ically scarce materials. 4 Implement through the United Nations the point 4 program and other measures pro- viding not only for expanded technical, edu- cation, and economic assistance, but for freer flow of goods, services, and capital, to every member of the family of nations seeking peace and freedom, Furthermore, immediate administrative action should be taken (1) to contract credit for all activities that unduly compete with expanded armament effort; (2) to impound, insofar as possible, funds appropriated for nonvital postponable objectives; (3) to de- velop a program for private expansion of pro- ductive capacity of critical items, such as steel, (4) to encourage increased private sav- ings, via sale of savings bonds. 1, REVIEW OF CURRENT ECONOMIC PRESSURES AND THE OUTLOOK The current economic situation diffcrs considerably from that which prevailed when war broke out in Europe in September 1939. Then the economy had a great deal of slack. Now employment, personal income and consumption are at record levels. In 1939 out of a total labor force of 55,- 600,000, about 9,000,000 were unemployed. Now the total labor force is about 66,000,000 and less than 3,600,000 are unemployed. Technological developments may be counted upon to increase production equivalent to adding a million persons to the !abor force during the next 12 months. Another million, JULY 20 mostly young pereons, will be available, many of whom are daily voluntecring for the armed services Hours of work can be ine creased. But the total amount of slack in the labor force is obviously less than half that of 10 years ago. In 1939 the Federal Reserve Board index of industrial production averaged 109 for the year and doubled within the next 5 years. In June of 1950 the index of industrial pro- duction stood at about 197. It reached 243 during the war. It could readily be increased from 6 percent to 7 percent, i. e, the index could reach a level of 210 without involving higher costs, uneconomic and submarginal plants, or additional gosts necessary to Over- come bottlenecks in production capacity. The one outstanding exception is steel, with copper, paper, and power possibly also bump- ing ceilings at an early date. In 1939 disposable personal income amounted to about $70,000,000,000. Now it is more than $200,000,000,000, and may ap- proach the $210,000,000,000 level before the end of 1950. After adjustment is made for increases in population and prices, real per capita disposable personal income is up over 40 percent Furthermore, consumers are buy- ing more in relation to their incomes than they were in the prewar period, Additional employment and wages combined with mill- tary operations abroad might well cause con- sumers to bid up prices sharply. In 1939 prices were comparatively low; agricultral prices in particular were substan- tially below a balanced relationship with other parts of the price structure Price in« creases then raised both production and ca- pacity At boom levels such as now exist, price increases are simply inflationary and obstruct rather than increase balanced pro- duction In 1939 corporate profits after taxes were about $5,000,000,0C0 They are now running at a rate of about $21,000,000,000, after taxes. Profits are therefore well over four times the prewar level after allowing for the increase in tax burden. Inventories of goods are in general about in balance. But widespread piling up of in- ventories by business, coupled with consumer hoarding, might well tighten the situation to such an extent as to give manufactulers, wholesalers, and retailers strong incentive to aggravate inflationary pressures It is assumed in this statement that cur- rent police action in Korea represents not an emergency action, but rather the first in a continued series of localized encounters with Communist aggression Relatively heavy military expenditures may for years to come be a steady proportion of governmental out- lay and approximate eighteen to twenty bil- lion dollars, as compared with thirteen at the present time. Can five to seven billion dollars be added to current defense expenditures without inflation? As indicated above, the economy could quickly expand another 5 per- cent with existing labor foice and capacity. Gross national product could rise from levels of $260,000,000,000 to two hundred and eighty or two hundred and eighty-five billion with- out serious inflation of costs, provided there be no panic buying by consumers, business, or the Government A further general rise in prices is not only unwarranted but aids directly the strategy of the Kromlin. Lenin laid down as the first tactic in Communist overthrow of capitalism that of inciting in- flation. Rumormongers and speculators who boost prices are accomplices of Stalin No more effective economic weapon can be found than the demonstiation by this Nation of self-discipline and sacrifice in dom2stic com- modity markcts equal to that being shown on Korean battlefields. I, FEDERAL FISCAL POLICY Fiscal policy, under the circumstances, should be directed toward balancing the cash budget as nearly as practicable or feasi- ble, thus contributing to economic stability and strength.
1950 On the basis of present tax laws, on the basis of the expenditures implied in the pending eppropriation bill as amended by the Senate Appropriations Committee, and on the basis of modestly expanding levels of national income, the cash budget of this Government may nearly be in balance. The cash budget as distinct from the traditional budget in- cludes total receipts from all sources includ- ing trust accounts on the one hand and all expenditures, including those from trust ac- counts, on the other hand. The Federal defi- cit on the traditional basis, excluding trust- account operations, might be $2,000,000,000. Existing programs approximate the condi- tions set forth by the Monetary, Credit, and Fiscal Policy Subcommittee in its report last January as requiring a cash surplus. The Nation faces this question: Is the ex- pected increase in defense expenditures of an emergency nature—one lasting only for a few months, or until the present Korean situation is terminated? Or, is an increased tempo of military activity more or less permanent— one kelly to last for the foreseeable future as additional Communist aggressions develop in other parts of the world? If the former is the accepted assumption then the Gov- ernment might well accept the resulting Gov- ernment deficit as a temporary expedient. If, however, the latter is deemed more likely, then sound fiscal policy demands balancing the budget either through reducing expendi- tures in other areas or by increasing taxes, or @ combination of the two. One of the strongest instruments for stabi- lizing the economy at high production levels and preventing creeping inflation is the Gov- ernment’s fiscal program, Nothing can be gained through permitting price increases and infiation. Today there is little slack in our human and material resources. Further inflation will not produce extra output. With fiscal policy one of the most expedient methods of preventing inflation, the Congress should make every use of it. This involves adhering to the criterion that the cash budget should, at the minimum, be balanced when economic activity is at its present tempo. Most careful scrutiny of Federal ex- penditure programs should again be made to find possible reductions that might offset to the largest possible extent the necessary increases in the military area. Once the ex- penditure program has been determined— after the pending appropriation bill becomes law and after the new requests for additional rallitary authorizations are known—the Con- gress should increase taxes to the extent necessary to assure a balanced cash budget in the next fiscal year. . The tax structure should also be designed to make whatever contribution 1s possible toward the control of strategic materials and scarce manpower. There is now in effect a schedule of wartime excise taxes originally designed with this purpose in mind. To the extent that present necessities are similar to those preyatling at the time these taxes were designed, they are well and good. No need for change in them exists. It may be, on the other hand, that changed circumstances ‘would dictate some change today in the list of particular articles subjected to punitive excises at an earlier date. The list of items included might, therefore, be subject to re- view but the principle of curtailing all uses of limited resources where they do not con- tribute to defense needs should be continued. This would suggest that the pending tax bill not be preased until the expenditure pro- gram becomes known and that an automatic criterion of a balanced cash budget be the guiding principle in any tax legislation this on, YI, MONETARY POLICY Tax measures designed to improve the bal- ance of the budget must be accompanied by monetary action wherever possible. Under the present circumstances of threat- ened inflation, the direction of the required CONGRESSIONAL RECORD—SENATE monetary action is clear. The problem is (1) the willingness to use and (2) the effec- tiveness, if used, of the credit restrictive de- vices which might be brought into play. Ordinarily restrictive credit devices operate through interest rate channels and thereby influence business decisions, However, if the psychological pressures making for inflation are strong enough they may well outweigh the importance which businessmen and con- sumers attach to increased interest costs. To the extent that they do discourage borrowing, increased interest costs offer a useful device. To the extent that costs are disregarded in the rush of individuals and businessmen to make thetr own preparations for war, the re- strictive effects of higher interest rates are nonexistent; only the cost effects to gov- ernment and defense construction are real. The Federal Reserve System has several devices available to it for restricting credit. One of these is through its open market Operations. Another restrictive device now avallable to the Federal Reserve System is the possi- bility of increasing requirements for member bank reserves. These requirements are now four percentage points or some 15 percent to 20 percent lower than their recent maxima. The most effective control for the specific needs of diverting purchasing power from so-called hard goods is no longer available without congressional action. The reenact- ment of authority for Regulation W is a first and necessary step if consumer purchases of automobiles, houeshold durables, are to be curtalled, In recent months it has been an accepted Government policy to encourage housing ex- pansion. If defense needs require, the Gov- ernment should reverse this policy, dis- couraging housing loans, This may be done by forcing larger down-payments for ap- proved mortgages, by increasing maximum rates on insured mortgages and by qualita- tive action through tighter appraisals standards. IV. MANDATORY ALLOCATION OF MATERIALS The economy fs operating so near capacity in certain areas such as steel, electric power, and paper that any increase in demand in the military establishments must, of neces. sity, create a demand for vital materials in excess of the immediate supply. In addi- tion to efforts to expand our capacity in these key items, efforts should be directed toward developing allocation programs for fair ap- portionment of these scarce materials among civilian uses. So far as military needs are concerned, the Draft Act provides the Presi- dent with power to direct production pri- orities for the defense establishments. However, Congress will need to enact au- thority for the administration to cooperate with industry in establishing equitable allo- cations to prevent disruption of the civilian economy and rising prices. PrEpaRepNgss TAXATION NEED A meeting of the Joint Committee on the Economic Report has been called for Pri- day morning, July 21, at 10 a. m. The President's message asking for increased mil- itary expenditures because of Korean devel- opments has made it clear that prompt ac- tion must be taken to prevent inflation and to mobilize the home-front economy to see the Nation through the world crisis. Members of the committee have responded to the memorandum of the chairman ctr- culated earlier in the week, and the meet- ing Friday will be an executive session for the discussion of all phases of economic mobili- sation, The President correctly pointed out in his message that “the dollar spent now for military purposes wil! have a magnified effect upon the economy as a whole” generating increased pressures which “if neglected could 10721 drive us into a general inflationary situa- tion.” I shall lay before the cammittee official evidence of the sharp increase in prices which has already taken place, running as high as from 20 to 50 percent in some comm- modities since March 14; in rubber there has been an increase of 90 percent. Food prices for the housewife, as well as raw-material prices for the industrial man- ager, had both risen 16 percent by July 11, and the increase is becoming more rapid, Prices of materials which will go into the military preparedness program are rising more rapidly; stee) scrap on July 11 had risen 44 percent, zinc 47 percent, copper 22 per-~ cent. Failure to act promptly to control this rising trend will only serve to make the na- tional program of preparedness more difficult and more expensive. The President in his message has recom- mended taxation “to finance the greatest bie amount of needed expenditures.” This is a mild statement if indeed it is not too soft. Corporate profits after taxes which before World War II were running at approxt- mately $5,000,000,000 annually are now run- ning at a rate four times that, or $21,000,000,- 000 annually. The combination of rapidly rising prices and this all-time peak of cor- porate profits after taxes seems to indicate the necessity for immediate action to im- pose at least an excess-profits tax. The Nation ts once again face to face with the problem of freezing prices. If we tem- porize, inflation will make the job increas- ingly difficult. There is no Member of Con- gress who does not remember how impossible it is to roll back prices after they have risen. It will be much easier and much better for all concerned to prevent them from rising. On numerous occasions in the last 10 years I have called attention to the essential wis- dom of the following sentence from the in- augural address of President Warren G. Hard- ing on March 4, 1921: “There is something inherently wrong, something out of accord with the ideals of _ representative democracy, when one portion of our citizenship turns its activities to pri- vate gain amid defensive war while another is fighting, sacrificing, or dying for national preservation.” EXECUTIVE SESSION Mr. LUCAS. I move that the Senate proceed to the consideration of execu- tive business. The motion was agreed to; and the Senate proceeded to the consideration of executive business. . EXECUTIVE MESSAGE REFERRED The PRESIDING OFFICER (Mr. SparkMAN in the chair) laid before the Senate a message from the President of the United States submitting the nom- ination of Robert J. Smith, of Texas, to be Vice Chairman of the National Secu- rity Resources Board, which was referred to the Committee on Armed Services. The PRESIDING OFFICER. Reports of committees are in order. If there be no reports, the clerk will state the nom- inations on the Executive Calendar. Mr. LUCAS. Mr. President, last eve- ning I served notice that we would take up for consideration the nomination of Maj. Gen. Philip B. Fleming, United States Army, retired. The Senator from North Dakota (Mr. Lancer] desires that it go over another day, and I shall ac- commodate him, but I advise him that tomorrow we must consider that nom- ination. The PRESIDING OFFICER The nomination will go over.
10722 RECESS Mr. LUCAS. As in legislative session, I move that the Senate take a recess unti] 12 o'clock noon tomorrow. The motion was agreed to; and (at 6 o'clock and 9 minutes p. m.) the Senate took a recess until tomorrow, Friday, July 21, 1950, at 12 o’clock meridian. NOMINATION Executive nomination received by the Senate July 20, 1950: Nariona, SecuRITY RESOURCES BOARD Robert J Smith, of Texas, to be Vice Chatr- man of the Natlonal Security Resources Board. HOUSE OF REPRESENTATIVES Tuvnspay, Jury 20, 1950 The House met at 12 o’clock noon. Rev. George E. Schnabel, pastor of Albright Memorial Evangelical Church, Washington, D. C., offered the following prayer: Father of life, light, and mercy, we rejoice in this day. In humility of spirit we yield ourselves to this hour that brings us together to deliberate the problems confronting this Nation and all the peoples of the world. We give Thee hearty thanks that we are not alone but that Thou art with us. Now again as we face a crisis which is not of our own making, to all who carry upon their hearis the problems of state give the wisdom and the common sense that together make for clear thinking and right decision. Grant, we pray Thee, to the President the presence of Thy divine spirit, that he might feel Thy hand upon him during these days that try his soul and that bear down upon him the heavy burdens of this crisis. And now 1n this hour grant Thy bless- ing not only upon those whose immediate concern is to legislate for the common good, but also grant Thy blessing, our Father, upon all those who serve the Members of Congress: those who dis- seminate the news—may they have, O God, a sense of stewardship for the en- lightenment of the people. And as we pray today, first praying for ourselves, grant that before our prayers end we might find ourselves at home and at work among the unfinished tasks of Thy world. This is our prayer today, Eternal Father, in the name of Jesus Christ our Lord. Amen. The Journal of the proceedings of yes- terday was read and approved. DUTY-FREE IMPORTATION OF EXHIBITS FOR MIDCENTURY INTERNATIONAL EX- POSITION, INC., NEW ORLEANS, LA. Mr. DOUGHTON. Mr. Speaker, I ask unarimous consent for the immediate consideration of the joint resolution (H. J. Res. 489) to permit articles im- ported from foreign countries for the purpose of exhibition at the Midcentury International Exposition, Inc., New Or- leans, La., to be admitted without pay~ ment of tariff, and for other purposes. CONGRESSIONAL RECORD—HOUSE The Clerk read the resolution, as fol- lows: Resolved, ete, That all articles which shall be imported from forelgn countries for the purpose of exhibition at the Midcentury In- ternational Exposition, to be held at New Orleans, La, from Septembcr 15 to October 1, 1950, inclusive, by the Midcentury Inter- national Exposition, Inc, a corporation, or for use in constructing, installing, or main- taining foreign exhibits at the said exposl- tion, upon which articles there shall be @ tariff or customs duty, shall be admitted without payment of such tariff, customs duty, fees, or charges under such regulations as the Secretary of the Treasury shall pre- scribe, but it shall be lawful at any time dauiing or within 8 months after the close of the said exposition to scll within the area of the exposition any articles provided for herein, subject to such regulations for the security of the revenue and for the coll c- tion of import duties as the Secretary of tha Treasury shall prescribe. Provided, That all such articles, when withdrawn for consump- tion or use In the United States, shall be sub- ject to the duties, if any, imposed upon such articles by the revenuc laws in force at the date of their withdrawal; and on such articles which shall have suffered diminu- tion or deterioration from incidental han- dling or exposure, the duties, if payable, shall be assessed according to the appraised value at the timo of withdrawal from entry hereunder for consumption or entry under the general tariff law: Provided further, That imported articles provided for herein shall not be subject to any marking requiiements of the general tariff laws, except when such articles are withdrawn tor consumption or use in the United States, in which case they shall not be releasec from customs custody until properly marked, but no additional duty shall be assessed because such articles were not sufficiently marked when imported into the United States Provided further, That at any time during or within 3 months after the close of the exposition, any article entered hereunder may be abandoned to the Government or dostroyed under customs supervision, whereupon any duties on such alticle shall be remitted: Provided further, That articles which have been admitted without payment of duty for exhibition un- der any tariff law and which have remained in continuous customs custody or under a customs exhibition bond and imported ar- ticles in bonded warehouses under the gene eral turiff law may be accc:ded the privilege of transfer to and entry for exhibition at the said exposition under such regulations as the Secretary of the Treasury shall prescribe: And provided further, That the Midcentury International Exposition, Inc , a corporation, shall be deemed, for customs purposes only, to be the sole consignee of all merchandise imported under the provisions of this act, and that the actual and necessary Customs charges for labor, services, and other ex- penses in connection with the entry, ex- amination, appraisement, release, or custody, together with the necessary charges for salaries of customs officers and employees in connection with the supervision, custody of, and accounting for, articles imported under the provisions of this act, shall be reim- bursed by the Midcentury International Ex- position, Inc, a corporation, to the Govern- ment of the United States under regulations to be prescribed by the Secretary of the Treasury, and that receipts from such relm- bursements shall be deposited as refunds to the appropriation from which paid, in the manner provided for in section 524, Tariff Act of 1930 as amended (U. 8. C, 1940 ed., title 19, soc, 1524). The SPEAKER. Is there objection to the present consideration of the joint resolution? There was no objection. JULY 20 Mr. REED of New York. Mr. Speaker, I ask unanimous consent to extend my remarks at this point in the Recorp. The SPEAKER. Is there objection to the request of the gentleman from New York? There was no objection. Mr. REED of New York. Mr. Speaker, the Midcentury International Exposition, Inc., will be held in New Orleans from September 15 to October 1 of this year. The purpose of House Joint Resolution 489 is simply to encourage and assist this exposition by permitting that the articles brought to this country for display dur- ing the exposition may be entered free of import duties and charges. This is in accord with established congressional policy. As in the case of other legisla- tion enacted by the Congress to facilitate such expositions, House Joint Resolution 489 contains the necessary safeguarding provisions so that if the articles admitted under this legislation are sold, proper import duties will be collected. I therefore urge the 1mmediate pas- sage of this legislation. The joint resolution was agreed to. A motion to reconsider was laid on the table. DUTY-FREE IMPORTATION OF EXHIBITS FOR INTERNATIONAL FOOD EXPOSI- TION, INC, CHICAGO, ILL. Mr. DOUGHTON. Mr. Speaker, I ask unanimous consent for the immediate consideration of the joint resolution (H. J. Res. 496) to permit articles im- ported from forcign countries for the purpose of exhibition at the Interna- tional Food Exposition, Inc., Chicago, Ill., to be admittec without payment of tariff, and for other purposes. The Clerk read the resolution, as follows: Resolved, etc , That all articles which shall bo imported from foreign countries for the purpose of exhibition at the International Food Exposition to be held at Chicago, IIL, from June 9 to June 15, 1951, inclusive, by tht International Food Exposition, Inc, a corporation, or for use in constructing, in- stalling, or maintaining foreign exhibits at the said exposition, upon which articles there shall be a tariff or customs duty, shall be admitted without payment of such tariff, customs duty, fees, or charges under such regulations as the Secretary of the Treasury shall prescribe; but it shall be lawful at any time during or within 3 months after the close of the said trade fair to sell within the area of the exposition any articles provided for herein, subject to such regulations for the security of the revenue and for the col- lection of import duties as the Secretary of the Treasury shall prescribe’ Provided, That all such articles, when withdrawn for con- sumption or use in the United States, shall be subject to the duties, if any, imposed upon such articles by the revenue laws in force at the date of their withdrawal, and on such articles which shall have suffered dim- inution or deterioration from incidental handling or exposure, the duties, if payable, shall be assessed according to the appraised value at the time of withdrawal from entry hereunder for consumption or entry under the general tariff law: Provided further, That imported articles provided for herein shall not be subject to any marking require- ments of the general tariff laws, except when such articles are withdrawn for consumption or use in the United States, in which case they shall not be released from customs cus- tody until properly marked, but no addi- tional dutv ghall be assesced because such
1950 articles were not sufficiently marked when imported inta the United States: Provided further, That at any time during or within 8 months after the close of the exposition, any article entered hereunder may be aban- doned to the Government or destroyed un- der customs supervision, whereupon any duties on such article shall be remitted: Provided further, That articles which have been admitted without payment of duty for exhibition under any tariff law and which have remained in continuous customs cus- tody or under 4 customs exhibition bond and imported articles in bonded warehouses under the general tariff law may be accorded the privilege of transfer to and entry for ex- hibition at the said exposition under such regulations as the Secretary of the Treas- ury shall prescribe; And provided further, That the International Food Exposition, Inc., a corporation, shall be deemed, for customs purposes only, to be the sole consignee of all merchandise imported under the provisions of this act, and that the actual and neces- sary customs charges for labor, services, and other expenses in connection with the entry, examination, appraisement, release, or cus- tody, together with the necessary charges for salaries of customs Officers and employees in connection with the supervision, custody of, and accounting for, articles imported under the provistons of this act, shall be re- imbursed by the International Food Expo- si*ion, Inc., a corporation, to the Governe ment of the United States under regula- tions to be prescribed by the Secretary of the Treasury, and that receipts from such reimbursements shall be deposited as re- funds to the appropriation from which paid, in the manner provided for in section 524, Tariff Act of 1930, as amended (U. 8. C., 1940 ed., title 19, sec. 1524). The SPEAKER. Is there objection to the present consideration of the joint resolution? There was no objection. Mr. REED of New York. Mr. Speaker, I ask unanimous consent to extend my remarks at this point in the Recorp. The SPEAKER. Is there objection to the request of the gentleman from New York? There was no objection. Mr. REED of New York. Mr. Speaker, I am pleased to join with the distin- guished chairman of the Ways and Means Committee (Mr. Dovcuron] in urging passage of House Joint Resolu- tion 496. This resolution is designed to facilitate and encourage particxpation in the International Food Exposition to be held next year in Chicago from June 9 to June 15 by providing that the im- ported articles for this exposition shall not be subject to market requirements under the tariff laws unless the articles are withdrawn for consumption in this country, The articles admitted for this exposition may be sold within 3 months after the close of the exposition but only under such safeguarding regulations as the Secretary of the Treasury shall sub- scribe in order to protect our revenue and collect the proper import duties. This legislation follows the established policy of the Congress in encouraging international exhibitions and exposi- tions held in this country and its pas- sage will afford the people of our coun- try opportunity to see the progress made in other countries of the world in de- veloping new food products. The joint resolution was agreed to. A motion to reconsider was laid on the table. CONGRESSIONAL RECORD—HOUSE AMENDMENT OF INTERNAL REVENUE CODE RE STATUTE OF LIMITATIONS Mr, EBERHARTER. Mr, Speaker, I ask unanimous consent for the imme- diate consideration of the bill (H. R. 9120) to amend section 322 (b) (3) of the Internal Revenue Code. The Clerk read the title of the bill. The SPEAKER. Is there objection to the present consideration of the bill? There being no objection, the Clerk read the bill, as follows: Be tt enacted, etc., That (a) section 822 (b) (8) of the Internal Revenue Code is hereby amended by striking out the last sentence and inserting in lieu thereof the following: “Notwithstanding the foregoing provisions of this paragraph, the period within which a claim for credit or refund may be filed, or credit or refund allowed or made if no claim is filed, shall not expire prior to 2 years after the time the tax was paid, but if a claim is filed, or credit or refund allowed or made if no claim is filed, more than 6 months after the expiration of the period within which the Commissioner may meke an assessment pursuant to such agreement or any extension thereof, the amount of the credit or refund shall not exceed the portion of the tax paid during the 2 years immediately preceding the filing of the claim, or, if no claim is filed, immediately preceding the allowance of the credit or refund.” (b) The amendment made by subsection (a) shall be applicable to taxable years be- ginning after December 31, 1941, and, sub- ject to the provisions of the second sentence of section 169 (c) of the Revenue Act of 1942 (added by sec. 509 (a) of the Revenue Act of 1943 and amended by section 2 of this act), the amendment shall also be applicable to taxable years beginning after December $1, 1923, and before January 1, 1942. Sxc 2. The second sentence of section 169 (c) of the Revenue Act of 1942 is hereby amended to read as follows: “A provision having the effect of section 322 (b) (8), as amended, of the Internal Revenue Code and a provision having the effect of the amend- ment made by subsection (b) of this sec- tion, shall be deemed to be included in the revenue laws respoctively applicable to tax- able years beginning after December 31, 1928, but such provisions shall be effective with respect to taxable years beginning prior to January 1, 1942, only if at some time after February 24, 1944, the Commissioner may assess the tax for such taxable year solely by reason of having made (either before, on or after February 24, 1944) an agreement with the taxpayer pursuant to section 276 (b) of the Internal Revenue Code or the cor- responding provision of the applicable prior revenue law to extend beyond the time pre- scribed in section 275 of such code or the corresponding provision of such prior revenue law the date within which the Commisstoner may assess the tax.” The bill was ordered to be engrossed and read a third time, was read the third time, and passed, and a motion to re- consider was laid on the table. Mr. REED of New York. Mr. Speaker, I ask unanimous consent to extend my remarks at this point in the Recorp. The SPEAKER. Is there objection to the request of the gentleman from New York? There was no objection. Mr. REED of New York. Mr. Speaker, prior to the enactment of the Revenue Act of 1942, section 922 (b) (1) of the Internal Revenue Code limited oredits and refunds of income taxes to those in respect of which claims were filed by the taxpayer within 3 years from the time 10723 the return was filed by the taxpayer or within 2 years from the time the tax was paid. If no return was filed by the tax- payer, then claim for credit or refund had to be made within 2 years after the tame the tax was paid. Section 169 of the Revenue Act of 1942 made important changes in section 322 of the code. Section 169 (a) of that act added paragraph (3) to section 322 (b) of the code to provide certain exceptions to the usual statute of limitations in cases in which both the Commissioner and the taxpayer have, within the period prescribed for the filing of a claim for credit or refund, agreed in writing to extend the time within which the Com- missioner may make an assessment. The stated purpose of section 322 (b) (3) was to extend the period within which claims for refund might be filed in cases where a waiver of the statute of limitations is given, by permitting such claims be filed at any time within 6 months after the expiration of the waiver. However, according to the in- terpretation placed upon these amend- ments by the Treasury Department, they have the effect of cutting down the usual 2-year period after payment with- in which claims may be filed, in any case where the waiver expires more than 6 months before the expiration of such 2-year period. H R. 9120 provides that the period within which a claim for credit or re- fund may be filed, or credit or refund allowed or made if no claim is filed, shall not expire prior to 2 years after the time the tax was paid. The bill also provides that, if a claim is filed more than 6 months after the expiration of the waiver period, the amount of the credit or refund shall not exceed the amount of tax paid during the 2 years immedi- ately preceding the filing of the claim. The amendment would be applicable to taxable years beginning after December $1, 1941, and in certain limited cases with respect to prior taxable years if at some time after February 24, 1944, the Com- missioner of Internal Revenue, by reason of a waiver agrcement with the taxpayer, was not precluded from the assessment of the deficiency in tax for such taxable years. THE KOREAN SITUATION Mr. GAVIN, Mr. Speaker, I ask unan- imous consent to address the House for 1 minute and to revise and extend my remarks. The SPEAKER. Is there objection to the request of the gentleman from Penn- sylvania? There was no objection. Mr. GAVIN. Mr. Speaker, the Presi- dent in his speech last night discussed the Korean situation and presented the case and events that led up to the final Korean invasion. However, he failed to tell the American people that last year we had 8,000 troops in Korea which were withdrawn, and which evidently meant that we had written off Korea. Now it would appear that our policies have been changed, and we have decided that Korea is not expendable and fine American youths are sacrificing their
10724 lives to regain that which we held a year ago Somehow or other it does not make sense to me and there should be an ex- planation made to the American people as to why the withdrawal of our troops, and then fight to again regain that which we held. He does not explain to the American people who is responsible for making these decisions, which I think everyone is entitled to know. Certainly there has been some shame- ful blundering along the line somewhere. Also, he did not tell the American people that the Armed Services Com- mittee, of which I am a member, have been pressing for an all-out defense pro- gram, And he did not explain why he insisted on cutting back the proposed 70 sur groups to 48 air groups at a time when defense was greatly needed. He does not explain Secretary Johnson's economy program that brought about the cancellation of the carrer; the cut- back in our ground forces; the cut-back in our Marine Corps and our naval air; and many other cut-backs. In Chairman Vinson's speech of April 4, he said that Mr. Johnson had taken off not alone the fat, but part of the muscle also, It would appear now that he severed a main artery while perform- ing this economy move on the defense program. So we now find ourselves in @ very desperate position, and if the action that has now been taken, had been taken a year ago, the Korean incident, in my opinion, would not have happened. It has taken the administration a long time to find out you cannot do business with the Russians. THE REPUBLIC OF NICARAGUA Mr. O'HARA of Illinois. Mr. Speaker, I ask unanimous consent to address the House for 1 minute and to revise and extend my remarks. The SFEAKER. Is there objection to the request of the gentleman from Tllinois? There was no objection. Mr O'HARA of Illinois. Mr. Speaker, 15 years ago, in my mghtly broadcasts over radio station WCFL, in Chicago, I stated that the Americas stood between the death throes of Europe and the birth pains of the O1ent and that the security and the economic welfare of the United States during perhaps a period of 500 yeurs depended upon how well we ad- vanced the solidarity of the nations in this hemispheze and aided in the devel- opment of their resources, their com- merce, and their power to meet the in- evitable conflict of interest with the east- ern world. Events since then, and the critical world situation of the moment, certainly emphasize the great impor- tance of broadening our thinking from a national to a hemispheric basis, There- fore, I call to the attention of the House, as a most heartening sign of American solidarity, a news article in this morn- ing’s newspapers that the free Republic of Nicaragua has announced that 5,000 well-trained Nicaraguan troops are ready for immediate service wherever the United Nations considers they are need- ed, I am moved by this news to say CONGRESSIONAL RECORD—HOUSE again, as once I chorused over half a century ago with my Nicaraguan play- mates in a Nicaraguan public school, “viva la Republica de Nicaragua, viva los Estados Unidos de America.” PERMISSION TO ADDRESS THE HOUSE Mr. HOLIFIELD. Mr. Speaker, I ask unanimous consent to address the House for 1 minute and to revise and extend my remarks. The SPEAKER. Is there objection to the request of the gentleman from Cal- fornia? There was no objection. LMr. Houirrzty addressed the House. His remarks appear in the Appendix.! INVESTIGATION BY COMMITTEE ON AGRI- CULTURE OF SUGAR SHORTAGE Mr. BOGGS of Delaware. Mr. Speak- er, I ask unanimous consent to extend my remarks at this point in the Recorp, The SPEAKER. Is there objection to the request of the gentleman from Dela- ware? There was no objection. Mr. BOGGS of Delaware. Mr. Speak- er, Members of the House, I urgently call upon the Agriculture Committee of this House to make an immediate investiga- tion of the sugar shortage with a view to seeing that sugar 1s available to every American family. Apparently, sugar is not available to the average American family through the normal retail stores. Complaints are beginning tocome in. I have done some checking on this myself, and I find that these complaints are well founded. It seems that this sudden shortage of sugar at the retail level is due to several factors—which include the failure of the Secretary of Agriculture to authorize the proper sugar import quota in anticipa- tion of our country's needs. There are, of course, many other circumstances which have aggravated this situation. The fact remains that the average Amer- ican family does not hoard sugar but merely buys from day to day that which is needed for family food purposes. It 1s the Congress’ job to ascertain promptly why adequatc supplies of sugar are not available for needed purchases by housewives. DISPOSITION OF COMMUNISTS IN THE UNITED STATES Mr. RICH. Mr. Speaker, I ask unani- mous consent to address the House for 1 minute and to revise and extend my re- maiks The SPEAKER. Is there objection to the request of the gentleman from onnsylvania? There was no objection. Mr. RICH. Mr. Speaker, the House yesterday by practically a unanimous vote passcd a bill to dcfend Korea against communism, While it is an admirable thought to fight communism in all parts of the world, I want to say to the President of the United States and to those in au- thority at the present time that it is necessary and most essential that we stop communism in the United States, For instance, there is the case of Harry Bridges, who perjured himself in his application to become an American JULY 20 citizen. This is the same man who 6 years ago obtained his freedom through the efforts of the then First Lady of the land. There are other men in this country of the same ilk who would betray Amer- ica, and their names are well known to the FBI and to those high in the present administration. These men should be rounded up in this critical time and lodged in Jail or any other place which would prevent their subversive activities against the Govern- ment of the United States. We should not permit them to roam all over these United States at this time when our American boys are giving their lives in the detense of Korea. Mr. Speaker, 1t is time to stop, to look, and to heed. SPECIAL ORDER GRANTED Mrs. ROGERS of Massachusetts asked and was given permission to address the House today for 5 minutes, following the legislative program and any special orders heretofore entered. DUMPING AND WASTING OF FOOD MUST BE STOPPED NOW Mr. REES. Mr. Speaker, I ask unani- mous consent to address the House for 1 minute. The SPEAKER. Is ther. objection to the request of the gentleman from Kansas? There was no objection. Mr REES. Mr. Speaker, waste of food must be stopped. The United States Government, according to news reports, is dumping the new potato crop. These reports state that the Department of Agriculture has purchased $400,000 worth of new potatocs and has destroyed more than $300,000 worth of this valu- able food. All this is going on while the Army and Navy are buying potatoes at market prices The same is true with regard to vet- erans’ hospitals that also use Federal funds. In other words, Federal funds are being used to pay for new potatoes that are being destroyed, while other Federal funds are being used to buy potatoes at regular prices. Not only that, but other tax-supported institu- tions, including hospitals and welfare agencies and organizations of simular nature, pay regular prices for these products. All this while the admini- stration is calling attention to the soar- ing retail prices of food of various kinds. The right hand of Government docs not seem to know, and in this case ap- parently cares little, what the left hand is doing, all at the taxpayers’ expense. I realize administration officials deal- ing with this problem have considerable to do, but it would not be expecting too much if they would devise a plan for us- ing the potatoes that are being wasted so that there might be an ample supply to take care of an increased demand ahead of us. It will make our citizens sick to realize that potatoes are being dumped while prices of essential food are increasing every day. The destruc- tion and waste of food should be stopp2d now. While I am on this subject matter, Mr. Speaker, I think our administrative officials should give consideration to the
1950 moving of surplus eggs and dried milk to take care of ECA demands abroad, and thereby offset a part of the tremendous demand that is being made against the Federal Treasury at the present time. TOTAL MOBILIZATION Mr. SMATHERS. Mr. Speaker, I ask unanimous consent to address the House for 1 minute. The SPEAKER. Is there objection to {he request of the gentleman from Flor- a There was no objection. Mr. SMATHERS. Mr. Speaker, I wish to join with many others in com- mending the President of the United States on his message to the Congress yesterday and on his speech to the peo- ple of America last night. They were logical and straightforward. My only regret is that the President did not call for complete and total mobilization. We are in a struggle for survival. Every citizen snould be placed equally in that struggle with no immunity, no special privileges, and no special profits for anyone or any group during this effort. Total mobilization would not neces- sarily signify the beginning of world war III. On the contrary, it is the best remaining hope we have of avert- ing total war. At this moment it may be that the Communist leadership has not finally and irretrievably decided to start world war III. If we can now, by our acts, convince the minds of the men in Moscow that the people of Amer- ica are not only willing to fight to re- sist Communist aggression but by their acts are in a position to fight, and to win, then we still have hope of avert- ing world war III. The men of the Kremlin are realists. If they can once appreciate our fervor and devotion to protect democracy and freedom and our resolve to sacrifice and fight to protect it, then there is some chance that those men in the Kremlin may not bring on total war. The people of America, I am gure, would gladly make this sacrifice for peace. The people of America would have to make this sacrifice in war. Total mobilization at this time could well mean peace. If it fails to convince the leaders of communism of our inten- tions then total mobilization would have readied us for battles to come. It would well save us from some future historian writing: Too little and too late. Mr. JONES of Alabama. Mr. Speak- er, I ask unanimous consent to address the House for 1 minute and to revise and extend my remarks. The SPEAKER. Is there objection to the request of the gentleman from Ala- bama? There was no objection. Mr. JONES of Alabama. Mr. Speaker, a few anoments ago I introduced the fol- lowing concurrent resolution: Resolved by the House of Representatives (the Senate concurring), That it 1s the sense of the Congress that, in any future war in which the United States may be engaged, military or essential civilian service should be performed by all citizens of the United States and there should be a total mobili- gation of all material resources, of industrial and other organizations, and of the services CONGRESSIONAL RECORD—HOUSE of all citizens of the United States. The President is hereby authorized and requested to determine, select, and designate those ma- terial resources, industrial and other organi- zations, and services, which he considers in- dispensable to the successful prosecution of any future war in which the United States may be engaged, and to submit to the Con- gress his request for the enactment of such legislation as may be necessary to secure to the executive branch of the Government the powers and controls essential to the suc- cessful prosecution and conclusion of any such future war. Mr. Speaker, it is high time that we mobilized not only our military forces but the economic resources of this coun- try to defend this great Nation of ours, INVESTIGATION OF HIGH COST OF LIVING AND FEDERAL GOVERNMENT CON- SUMER SERVICES Mr. JAVITS. Mr. Speaker, I ask unanimous consent to address the House for 1 minute and to revise and extend my remarks. The SPEAKER. Is there objection to the request of the gentleman from New York? There was no objection. Mr. JAVITS. Mr. Speaker, a bipar- tisan group of six Members of the House—Representatives Jacop K. Javits, Republican-Liberal, of New York; JAMES G FutTon, Republican, of Pennsylvania; Tuor C. TOLLEFSON, Republican, of Washington; AnrHony F, TaurIELLo, Democrat, of New York; AsraHam A. Rigicorr, Democrat, of Connecticut; and Srpney R. Yates, Democrat, of linois— are today introducing a resolution to es- tablish a select committee to guard against uneconomic price rises and shortages of foods and other cost-of- living items while the Congress is in recess this fall. The resolution also pro- vides for investigation of the effect on the cost of living of moderate- and mid- dle-income families in the United Stutes, particularly in the cities, of the Federal Government's farm price support and control programs and of the processing and distribution costs of foods and fibers. The select committee is also asked to de- termine whether consumers are getting enough information to enable them to buy most economically and intelligently and whether the consumer services avail- able throughout the Federal Govern- ment are being adequately coordinated. In view of the national decision not to consider the present situation in Korea sufficiently grave to invoke full war cmer- gency powers, self-discipline and watch- fulness on the part of our people are clearly needed to keep prices for foods and other cost-of-living items from run- ning away and to prevent the creation of artificial shortages. Drastic increases in the last 2 weeks since the Korean ag- gression in the cost of flour, coffee, sugar, meat, and similar items to the American family of moderate and middle incomes, as well as of basic raw materials like cotton, rubber, and copper, are only the first signs of what is coming. Unscrupu- lous elements, though a small minority of our people, are always ready to take advantage of a national emergency for selfish purposes. The light and the heat of congressional investigation will serve a salutary purpose in disclosing facts 10725 and in holding the lMne against a run- away inflation in the cost of living. A fundamental assumption by the Soviet Union in its effort to dominate the world is that we in the United States will suffer a cataclysmic economic collapse. Noth- ing would be more conducive to a serious depression here than a run-away cost of living. It is essential in the interests of total diplomacy and the victory against communism that the price line on cost-of-living items be held domesti- cally. We consider our resolution to be directed toward that end. Consumer services in the Government are widely dispersed through many agen- cies and coordination is urgently re- quired. Among the agencies rendering consumer services are the Department of Agriculture, Treasury Department, Fed- eral Trade Commission, Federal Security Agency, Department of Commerce, Fed- eral Communications Commission, Fed- eral Power Commission, Department of the Interior, Interstate Commerce Com- mission, Office of the Housing Expediter, and the Tennessee Valley Authority. The Nation is beginning to understand the importance of protecting the con- sumer and giving the consumer advice in his purchasing as a critical element in the stabilization of our economy and in our prosperity, yet the services which the Federal Government renders are widely diffused, confusing, and often contradictory. A rationalization of these services in the interest of the con- sumers, their simplification, and consoli- dation is urgently needed. The text of the resolution follows: Resolution to create a select committee to investigate and study the high cost of living Whereas the challenge to free institutions and world peace by Communist aggression in Korea is being utilized by unscrupulous elements as the basis for drastic price rises in food, clothing, household goods, and other cost-of-living items, otherwise economically unwarranted; and Whereas food costs are estimated to con- stitute about one-third of the budget of the moderate- and middle-income families and there have been heavy increases in the costs of food and fibers having a serious effect on their standard of living especially of those residing in the cities; and Whereas the adequacy and avallability at reasonable prices of our food-and-fiber sup- ply is vitally important to the Nation; and Whereas it is essential that while the House of Representatives is in recess or ad- journed a committee of the House shall have under constant surveillance and inquiry the price levels and supply availability of coste of-living items: Now, therefore, be it Resolved, That there is hereby created a select committee to be composed of 15 Mem- bers of the House of Representatives to be appointed by the Speaker with adequate rep- resentation from among members represente ing consumers in industrial and city dise tricts, one of whom shall be designated as chairman. The committee ts authorized and directed to conduct a full and complete ine vestigation and study of the effect on the cost of living of the moderate and middle- inoome families in the United States of (1) factors related to United States military preparation or operations; (2) the farm price support and control programs of the Federal Government; (3) processing and distribution costs and practices with rela- tion to food and fibers; (4) the adequacy of consumer services and consumer informa- tion, and the establishment of a means for
10726 coordinating the many Government services and agencics, and private sources of infor- mation to guide consumers in the most ef- fective utilization of thelr purchasing power; (5) the need for laws and regulations or the amendment or repeal of existing laws and regulations in relation to the foregoing. The select committee shall report to the House of Representatives—or to the Clerk of the House if the House is not in session—from time to time as it shall deem appropriate, but finally not later than March 1, 1951. Any vacancy oc- curring in the membership of the com- mittee shall be filled in the same manner as the original appointment was made, For the purpose of carrying out this resolution, the committee is authorized to sit and act during the present Con- gress at such times and places within the continental United States, whether the Ifouse 1s in session, has recessed, or has adjourned, to hold such hearings, and to require, by subpena or otherwise, the attendance and testimony of such witnesses and the production of such books, records, correspondence, memo- randa, papers, and documents, as it deems necessary. Subpenas may be is- sued under the signature of the chair- man of the committee or any member of the committee designated by him, and may be served by any person designated by such chairman or member. WOMEN IN THE ARMED SERVICES Mrs. ROGERS of Massachusetts. Mr. Speaker, I ask unanimous consent to ad- dress the House for 1 minute. The SPEAKER Is there objection to the request of the gentlewoman from Massachusetts? There was no objection Mrs. ROGERS of Massachusetts. Mr. Speaker, I am having a great many re- quests from women saying they would like to join the Marines or WAVES or WAC's. They aré anxious to do all they can for their country in this time of emergency and stress. Some have even stated they would like to have a draft of women if they have a draft of men. That is a very far reaching thing. I believe the registration of women may well come. I was reliably told that the limitation on the quota in the different services will be lifted very shortly and enlistments will be accepted. The rules and regulations are not yet ready to announce You must remember that 165,000 women served in a service capacity during World War II, and they made a very great contribution. NECESSITY FOR A BALANCED MILITARY FORCE Mr. FULTON. Mr. Speaker, I ask unanimous consent to address the House for 1 minute and to revise and extend my remarks. ' The SPEAKER. Is there objection to the request of the gentleman from Penn- sylvania? There was no objection. Mr, FULTON. Mr. Speaker, in the present emergency conditions, there have been various calls from groups in the country for the resignation of certain policy making people in the Government, This is no time to rock the boat. We should be united behind our boys in Korea and get them the reinforcements, men, material, and weapons and should CONGRESSIONAL RECORD—HOUSE forget any bickering among ourselves at this time. The team is in there. We are all working together on this, and regardless of past mistakes or future mistakes that might be made we have to work on this Korean trouble on a nonpartisan basis. A group of the Progressive Republican Congressmen of the House endorsed a statement of affirmative principles as goals for the Republican Party, which were largely based on the 1948 platform. A group called the Republican Advance, who have called for the resignation of Secretary of Defense Johnson, also en- dorsed these principles, which is their right. As Iam not a member of this group, nor was I consulted on that state- ment calling for his resignation, I wish to express my confidence in Secretary Johnson and his Assistant Secretary of Defense, our good Paul Griffith of Penn- sylvania. These are difficult times, and no man can guarantee against an attack any place in the world, but we can all step in and cooperate when 1t does take place. The problem of defense is not whether we could adequately protect any county in the world from attack but whether the United States could have a balanced force that gives this country reasonable security and with which we can guar- antee reasonable security to the people to whom we have obligations under the United Nations. We must back the United States team that 1s now imple- menting the policies regardless of poli- tics, as we cannot waste the time for new personnel to learn vital key jobs. Any change now or lack of confidence at home can only show dissension behind the lines and react unfavorably abroad, ADJOURNMENT OVER Mr McCORMACK Mr. Speaker, I ask unanimous consent that when the House adjourns today it adjourn to meet on Monday next. The SPEAKER. Is there objection to the request of the gentleman from Mas- sachusetts? There was no objection. CALENDAR WEDNESDAY BUSINESS Mr McCORMACK. Mr. Speaker, I ask unanimous consent that the business in order on Calendar Wednesday of next week be dispensed with. The SPEAKER. Is there objection to the request of the gentleman from Mas- sachusetts? There was no objection. EXTENSION OF REMARKS Mr. DONDERO asked and was given permission to extend his remarks and in- clude an article. Mr. MILLER of Maryland asked and Was given permission to extend his re- marks and include an editorial. Mr. MASON asked and was given per- mission to extend his remarks on the subject The Historical Background of the Korean Situation. Mrs. ST. GEORGE asked and was given permission to extend her remarks in four instances. Mr. COTTON asked and was given per- mission to extend his remarks and in- clude an editorial, JULY 20 Mr. SIMPSON of Illinois asked and was given permission to extend his remarks and include an editorial from the Ma- comb (Ill.) Daily Journal. Mr. CAVALCANTE asked and was given permission to extend his remarks and include extraneous matter. Mr. RODINO asked and was given permission to extend his remarks in two instances and include extraneous mat- ter. Mr. KENNEDY asked and was given permission to extend his remarks and in- clude an editorial. Mr. O’HARA of Illinois asked and was given permission to extend his remarks. Mr. LATHAM asked and was given permission to extend his remarks in two instances and include extraneous matter. Mr. HOFFMAN of Michigan asked and was given permission to extend his re- marks in two instances and include ex- traneous metter. Mr. SAYLOR asked and was given per= mission to extend his remarks and in- clude an article. Mr ADDONIZIO and Mr. CARNAHAN asked and were given permission to ex- tend their remarks, each to include an editorial. Mr. BOLTON of Maryland asked and was given permission to extend his re- marks. Mr GOSSETT asked and was given permission to extend his remarks and in- clude some excerpts from a speech FEDERAL DEPOSIT INSURANCE ACT Mr. SPENCE. Mr. Speaker, I move that the House resolve itself into the Committee of the Whole House on the State of the Union for the further con- sideration of the bill (S. 2822) to amend the Federal Deposit Insurance Act (U S.C, title 12, sec 264). The motion was agreed to. Accordingly the House resolved itself into the Committee of the Whole House on the State of the Union for the further consideration of the bill 8. 2822, with Mr. Foranp in the chair. The Clerk read the title of the bill. The CHAIRMAN. Before the Com- mittee rose on yesterday it was agreed that the bill was to be considered as read and open to amendment at any point. All committee amendments to the bill were agreed to, except two amendments against which the gentleman from Mich- igan LMr. Wotcorr] reserved points of order. The Clerk will report the first amend- ment on which a point of order was reserved. The Clerk read as follows: Page 60, immediately following line 14, insert the following new subsection. “(b) The eleventh paragraph of section 709, title 18, United States Code, is amended by adding the following new sentence at the end thereof: ‘The use of the contraction “Federal Savings Insurance Corporation” or the initials “F § I. C” shall not be con- strued as a violation of this section.’” The CHAIRMAN. Does the gentleman from Michigan insist on his point of order? Mr, WOLCOTT. No, Mr. Chairman: I do not insist on the point of order to this amendment.