1950 tor from Michigan [Mr. Vanprenserc) had read enough of it to call for a new policy in China, It was only last December 23 that the State Department issued the secret memorandum instructing our diplomats in the Far East to write off the island of Formosa as of no strategic importance. This moved the last Republican Presi- dent, Herbert Hoover, to raise his states- man's voice in protest. He suggested, only last January 2, that the Navy should be used, if necessary, to defend Formosa, His suggestion was endorsed by the Sen- ator from California [Mr. Know.anp], Senator from Ohio [Mr. Tarr], and others, The secret memorandum of December 23, 1949, indicates how our foreign policy has shifted to suit the whims of Joseph Stalin. Formosa had no importance to the United States in December 1949. But on June 3, 1945, when the Commu- nists had no designs on Formosa, our State Department issued an official bulle- tin which commented as follows, with regard to Formosa: With the exception of Singapore, no loca- tion in the Far East occupies such a con- trolling position, (State Department bulle- tor satee June 3, 1945, vol. 12, No. 310, p. On January 12, Secretary Acheson warned against “foolish adventures” in the Far East. Dean Acheson's policy had other advocates. President Truman at a press conference on January 5 released State Department bulletin, volume 22, No. 550, dated January 16, 1950, which said on page 79: The United States Government will not pursue a course which will lead to involve- ment in the civil conflict in China. Similarly, the United States Government will not provide military aid or advice to Chinese forces on Formosa, Another Democratic spokesman got into the act on January 9. The senior Senator from Texas [Mr. ConnaLLy], chairman of the Senate Foreign Rela- tions Committee, said on the Senate floor: No, Mr. President, I shall not favor sending a single American boy with a gun in his hand to Formosa to settle a civil war six or seven thousand miles away from his home, in order to appease the political ambitions and the oratorical frothings of Senators. This was the line. Senators could not be appeased. Joe Stalin was the man to appease. As the Chinese Communists move up to the Korean front in support of Korean Communists, how ridiculous these recent words from the lips and pens of our leaders. But that is not all. So determined were these men to pursue this policy of appeasement that they have failed to provide our soldiers with the minimum equipment they now need to defend themselves. Not only did our leaders misiead us, they made statements about it. Again, it is certainly with no sense of pleasure that I quote. In the March 3 edition of the New York Herald Tribune, President Truman 1s quoted as follows: The President added that never in the history of the United States had its defenses CONGRESSIONAL RECORD—SENATE been in such good shape except when actually at war. Secretary Johnson chimed in on March 13 when he testified before a Senate ap- priations subcommittee: The Army is stronger today than at any time since the end ofthe war. * * * And as for the Air Force, it is in the highest state of combat readiness since the war. On May 5 it was President Truman again, His statement as published in the New York Herald Tribune of that date was: He (President Truman) is not alarmed over the possibility of a shooting war with Russia, and backed up his optimism with disclosure that next year's defense budget will be smaller than the one Congress is now working on. * * * He told his weekly news conference the cold war situation is better now that it was in 1946, On June 2, just 23 days before the Korean outbreak, the Baltimore Sun quotes President Truman, at his weekly news conference, as saying that he does not expect war. “In fact,’”’ he is quoted as saying, “the world is closer now to permanent peace than at any time in the last 5 years.” The administration said these things. Whether the administration believed them or not, I do not know, I knew better, and I assume the President's sources of information are better than mine. The fact is, we are not prepared for a showdown in Korea or anywhere else. Although we have been appropriating about $15,000,000,000 a year for our de- fense establishment, we find we have too little. The administration has set its sights too low insofar as our arms programs have been concerned. Each military appropriation of the last 3 years has been the subject of administrative economy cuts. They did not even spend the money the Congress voted for the arms programs, The only approach to economy made by our governmental planners has been in the field of preparedness, While we made these false economies on our national defense budget, we have spent billions of dollars in the last 5 years to buy surplus commodities and to maintain artificially high food prices. We have accumulated an unbelievable food surplus, but no surplus of tanks or planes. Commodity surpluses are no good to the men in Korea. It is not pos- sible to stop Communist tanks with sur- plus potatoes or surplus peanuts. The theory of the hand-out state is now seen in its true perspective. We had a choice of providing adequate military security or providing hand-ovt billions. ‘We chose to spend our money for hand- outs. We bought votes instead of bul- lets. Our leadership took the easy way. ‘Now we must live the hard way and it will be that much harder. I want to make the position of this Republican Senator crystal clear. I am for our men in Korea. They are facing overwhelming odds. They see our ba~ zooka shells and our artillery making hits on Russian tanks. They see these hits bouncing off the Russian armor like marbles. They see the tanks plunge ahead. No wonder front-line reporters 10489 write of bitterness and despair in the hearts of some of our men. I have no doubt this is the so-called German scientist program coming home to roost. At some future time I intend to tell the Senate how the program of President Truman and our military lead- ers, aimed at bringing over 1,000 German scientists to the United States after World War ITI, was scotched by one man in the State Department. The program was less than one-fourth effective. This man boasted that the scientist program might be approved by the President of the United States and the Cabinet, but it was not approved by him. He stopped it. The German brains went to Russia. Now, the Russian tanks have impene- trable armor. And that man is still em~ ployed in the State Department of the United States. Mr. FERGUSON. Mr. President, will the Senator yield? Mr. BRIDGES. I yield to the Senator from Michigan. Mr. FERGUSON. Being a member of the Committee on Appropriations, with the senior Senator from New Hampshire, when the evidence about the stopping of these scientists was produced, I should like to ask him whether it was not true that the man who claimed to have the capacity to stop the bringing of these German scientists into this country was operating in the Security Division of the State Department. Myr. BRIDGES. That is my under- standing. I do not know that he is still in the Security Division of the State De- partment, but I understand he is still in the State Department. Mr. FERGUSON. He is in the State Department at the present time? Mr. BRIDGES. That is correct. Mr. FERGUSON. It is true, is it not, that evidence was given before the com- mittee at that time, that there was delay in the examination of the loyalty files, and that changes had been made in dif- ferent boards, because of which delay had resulted for months with respect to examination of the loyalty files? Mr. BRIDGES. The Senator is abso- lutely correct. Such evidence was given at that time. Mr. FERGUSON. Was there not some evidence that the same man who boasted about his capacity to thwart the desires of the President of the United States had some responsibility for those delays? Mr. BRIDGES. ‘Yes; he certainly did. Mr. President, I desire to make it per- fectly clear that the military leaders wanted to have the German scientists brought here, the President wanted them brought here, but one man in the State Department, who is still in the State Department, according to my under- Standing, boasted that he would stop such a program regardless of what the President of the United States wanted or what any member of the Cabinet wanted. Mr. KEM. Mr. President, will the Senator yield for a question? Mr, BRIDGES. Certainly. Mr. KEM. I should like to ask the Benator from New Hampshire if he be- lieves that the shipment of war mate- rials from the countries of western
10490 to Russia and other countries behind the iron curtain has in any way contributed to the war armament our boys are now being required to meet in Korea? Mr, BRIDGES. I think it undoubt- edly has. If we were so careless as to allow our citizens or our allies to ship materia] of military significance to Rus- sia or the satellite countries, we are cer- tainly, to that extent, guilty of having contributed to the present military situation. Mr. KEM. I should like to ask the Senator from New Hampshire if it is not true that we learn from the reports from the front in Korea that the Russian tanks are superior to any tanks we have in the field? Mr. BRIDGES. Such reports come to us. Mr. KEM. In that connection is it not significant that the shipments of ma- chine tools from the United Kingdom into Russia in the first 4 months of 1950 were 10 times the amount of the ship- ments of such machine tools in the cor- responding period in 1949? Mr. BRIDGES, That is my under- standing. Mr. KEM. Is it not true that those are official figures obtained from the De- partment of Commerce? Mr. BRIDGES. I understand they are official figures obtained from the De- partment of Commerce. Mr. KEM. What sort of business is it for us to be furnishing England sieel and industrial equipment and having England in turn shipping it to Russia for e Mr. BRIDGES. I cannot understand it. As the Senator knows, it was an- nounced in the afternoon newspapers that Great Britain has finally stopped sending oi] and gasoline to the Com- munists in Korea. Mr. WHERRY. Mr. President, will the Senator yield? Mr. BRIDGES. I yield. Mr. WHERRY. After that question has been raised on the floor for the past several years by the distinguished Sena- tor from New Hampshire, and especially by the distinguished Senator from Mis-~ souri, and also in some measure by the junior Senator from Nebraska, the ques- tion has been asked: What about it? Yesterday the junior Senator from Nebraska, as the Senator from New Hampshire may remember, asked the question whether we should continue to give ECA aid to the various beneficiary countries and permit them to continue to sell strategic materials to Russian satellite countries, which strategic mate- rials finally reach their destination in the hands of the Russian Government? I have here an Associated Press article dated London, July 18, in which the fol~ lowing appears: British services operating in the Far Hast decided to take over all stocks of ofl there for thetr own uses, I submit to the distinguished Senator from New Hampshire that if shipments of oil should be discontinued to Red China, we should stop allocating to ECA countries strategic materials which may find their way to Russian satellite coun- CONGRESSIONAL RECORD—SENATE tries and thus jeopardize our national defense, handicap us in fighting an all- out war, and hurt our chances not only of national defense but of winning a vic. tory in such s war. Mr. BRIDGES. I think the Senator Js correct. Mr. WHERRY. Would the Senator say the same thing with respect to steel and rubber? We are supplying all kinds of articles to the ECA countries for their peacetime requirements at a time when there is no longer involved the question of the dollar gap. It is a question of whether we can allocate these materials to the ECA countries when it is necessary for us to use such materials properly to defend ourselves, and send war materials to the front lines, where they are so badly needed by the boys who are giving up their lives to defend us on foreign soll. Mr, BRIDGES, I have in my hand today’s afternoon newspaper in which there is an article headed “British Stop Sending Oil to Chinese Reds; Services Take It Over.” Perhaps that is the article to which the Senator from Ne- braska previously referred. Mr. WHERRY. It is, I ask the Sena- tor if he will place it in the Recorp at this point as a part of his remarks? Mr. BRIDGES. Mr. President, I ask unanimous consent that the article from the Washington Evening Star of today to which I have just referred may be printed in full in the Recorp at this point. There being no objection, the article was ordered to be printed in the Rxcorp, as follows: ; Barrisn Stor Sxnpwve Om To Curnesr REps; SERVICES Take rr Oven—Armen Forcrs To Use SHELL Co. Stocks ron Korea OreRa~ TIONS Lonpon, July 18.—A Foreign Office spokes~ ran announced today that Britain has stopped all ot] shipments to Red China. British services operating in the Far East decided to take over all stocks of oil there for their own uses. Their needs have in- creased because of operations undertaken in carrying out the United Nations Security Council resolution for bringing back peace to Korea, the spokesman said. Britain earlier this month turned down an American suggestion that oil shipments to Red China be Hmited. The Foreign Office apokesman at that time said only of! for civilian consumption was going to Red China, The spokesman said only one British com- pany—Shell—bas been selling out to the Chinese Communists. In the first 6 months of this year, he said, total supplies amounted to 26,000 tons—leas than a tenth of China's civilian requirements. The spokesman added: “The question of the future supply of ofl products to China has, however, became academic, since the British service depart- ments (army, navy, air force), acting in terms of the United Nations Security Coun- cil resolution on Korea, have decided to take over all stocks of oll held by the Shell Co, in the theater.” The fuel in stock in the Far East will be ‘used by the British feet and, presumably, by British planes. Mr. BRIDGES. The article says the British have stopped all oil shipments to Red China, But the Russian tanks, the Communist tanks used by the North Koreans, which have moved down into South Korea and which are causing us so much trouble, and are taking the lives JULY 18 of American boys, were running on the gasoline supped by a supposed ally of ours. The situation being such as it is, such shipments of oi] should have been stopped before this. The shipment of such oil was a terrible thing. I am very happy that finally the British, as of this afternoon, have announced that they have decided to stop such shipments of ofl. Mr. SCHOEPPEL. Mr. President, will the Senator yield? Myr, BRIDGES. I yield. Mr. BCHOEPPEL. I should like to ask the distinguished Senator if the United Nations machinery, under which we ap- parently have gone into Korea, should not have been invoked immediately to prevent members of the United Nations from participating in or carrying out such ean arrangement as the Senator is referring to, namely, permitting busi- ness a8 usual to continue with respect to strategic materials and war supplies, and certainly oils and gas and all such materials? Mr. BRIDGES. Since we are now act- ing as a part of the United Nations police force, so to speak, in Korea, and so forth, and when the United Nations is calling | upon other nations to cooperate in fur- nishing war material and armed forces, certainly, as the Senator from Kansas well knows, it is just as important that supplies and equipment shall go to the forces sent to Korea, as is the sending of the forces themselves. Therefore, in getting at the root of the trouble, cer- tainly the United Nations should come into play in that respect. I think the Benator from Kansas is absolutely correct. Mr. President, the matter of the Ger- man scientists was very important. The Senator from Michigan [Mr. Ferav- son], the Senator from Nebraska [Mr. Wuerry], and many other Senators who were interested in that situation at the time it was being considered, remember what took place. We sat in commmittee and heard a man testify that this indi- vidual said he did not care what the program of the President of the United States or of the Cabinet was, that he was going to block the coming into the United States of German scien- tists. As the result of this attitude on the part of some of our civilians, against the advice of the President and the mili- tary authorities, the entry into the United States of a sufficient number of scientists was blocked, and Russia ob- tained the bulk of them. We obtained only a few. Let us face the cold, grim, bloody facts. Ameriea is in a shooting war. The cold war is over. This may be the opening skirmish of World War IZ. Americans can honestly face these facts. Americans can be realistic. Or we can continue to hide our heads in the sand, utter pious hopes for the success of the United Nations under Trygve Lie, who has played the Com- munist tune, and continue to soften our people with more handouts. The clouds of World War II gathered on the distant horizon of Ethiopia. They appeared to be a far distant storm. The clouds rolled closer—enveloped Czecho- slovakia, We took no extraordinary
1950 precautions as the tempest approached nearer and nearer. Then when the storm broke at Pearl Harbor we spent agonizing months while American men struggled with too little too late. After a@ lag, while men died needlessly, we caught up with the military potential of our enemies and succeeded in defeating them. It is the elementary precept of war that you must get there first with the most. Let us have no more too little too late. Let us not be again lulled by the false hopes raised by false promises. The Soviet Union has had every op- portunity for 17 years to become an honorable member of the community of nations, The Soviet Union was accepted as a full partner of the Allied effort in World War II. The Soviet Union was @ full partner in planning for the peace. At no time during the last 17 years, at no time during the course of @ partnership which was wholly unwar- ranted and utterly unearned, in fact, at no time since the Bolsheviks seized power in 1917, has the Soviet Union deviated from the Marx-Lenin-Stalin preachment of unremitting war against the non-Communist world. Their bloody, godless, criminal conspiracy goes ever forward. It must be clear to everyone that ulti- mately America has but two choices. We can fight communism and destroy it or we can surrender to communism and be enslaved. There is no middle course. There has been no middle course. There is no slight hope for a middle course. There will be peace overtures. There will be deals. Tools of Soviet aggres- sion will come forward with proposals to end the Korean war. Such gestures are intended only to further soften the United States. If we accept them, we merely give communism more time to revamp its schedule for conquest. Mr. FERGUSON. Mr. President, will the Senator yield? Mr. BRIDGES. Certainly. Mr. FERGUSON. Of course, the Sen- ator has heard of India’s suggestion to Stalin that one of the peace moves be that we admit Red China into the United Nations as one of the members of the Security Council, in place of National- ist China, and that thereafter there would be a negotiation for peace in Korea. Does not the Senator realize that if that appeasement step were taken, it would be but the first of a series of big payoffs to the Kremlin for their black- mailing, following their withdrawal from the United Nations on the ground that they would not be in the United Na- tions if they could not have Red China sit beside them in the Security Coun- cil? Does not the Senator realize that once we paid that first blackmail, ever afterwards we would be at the absolute mercy of Red China, as a close ally and satellite of the Kremlin? Does not the Senator also realize that in that case, whenever Joe Stalin and his Kremlin decided to move out of the United Na- tions, he would always have Red China in the Security Council of the United Nations, to block any step which was not & procedural matter, and when Red CONGRESSIONAL RECORD—SENATE China wanted to step out of the United Nations and again blackmail the United States and the other free nations of the world, Red China would have the Red Kremlin in the United Nations, where it could veto any step which was at- tempted to be taken in behalf of free- dom and peace in the world? Mr. BRIDGES. Mr. President, the Senator from Michigan is absolutely cor- rect in saying that if we yielded on that point, we would simply be paying the first installment of blackmail. The Senator has stated the case very well. Mr. FERGUSON. And, of course, once a first installment of blackmail is paid, thereafter it is necessary to follow the first payment with more or less con- tinuous payments of blackmail, extend- ing endlessly into the future. Mr. BRIDGES. Yes, there is no end to blackmail. Mr. President, there is no doubt that the Kremlin was astounded by our re- sistance in Korea. Stalin certainly had no right to expect resistance. His stooges in the United States had re- ported this country would continue appeasement, Stalin had only to look at our record. Each time communism has tested us we have retreated, we have equivocated, we have found excuses, we have made ex- cuses. We have sacrificed possible allies to appease Stalin’s unremitting appetite for conquest. From the record, how on earth could Stalin anticipate that we would send American men to fight his colonials in Korea? It seems clear that Korea is a most unlikely place to make a stand. It is equally clear to me that Stalin will not start the final phase of world war III, the assault on North America, until he is ready. Stalin prefers to wait until his satellites have overwhelmed their neighbors. Stalin intends to fight this war with Koreans, Chinese, Poles, Czechs, Slovaks, Bulgars, or any other colonials he can press into service. Stalin will furnish military supplies and military commanders for his puppets, but his own Russian divisions will be re- served for the final grand assault. Meanwhile he will attempt, by attrition, to wear away our resistance. I propose that we face facts, Mr. Pres- ident. This is real war. This is no police action. This is grim and bloody warfare. We can start to fight this war now. We are 15 months behind Russia at this mo- ment. We can begin to live hard and work hard, and we still have a fighting chance to win. I say let us get on with it. Our choice is clear. We can continue the soft course of hand-outs to buy votes or we can take the hard choice of pro- viding men to fight and funds to buy guns, instead of surpluses. We require firm, consistent leadership. The responsibility for providing that leadership rests on the administration. There must be an end to this quibbling and bickering. There can be no more glowing statements for political advan- tage. Now, if ever, our leadership must close ranks. President Truman has now repudiated appeasement, His advisers must do like- 10491 wise. If we can get the wise and positive leadership which we require we can es- tablish a truly bipartisan effort in the perils which lie ahead. There can be no rubber stamp. There can be no head- strong, stubborn, or petty men in the councils of our leaders. On March 24, 1948, I spoke on the floor of the Senate. I offered a 17-point pro- gram to stop Communist aggression, Most of those points are as valid today as they were over 2 years ago. Today I offer an expanded program based on my original suggestions. I sin- cerely urge the President of the United States to adopt it as a program for sav- ing the America we know. Our first and foremost consideration is to arm the United States. Everything else, at this hour in our history, assumes secondary importance. Our men are making a valiant effort to hold a beach- head in Korea. They may fail. But if they succeed they will need reinforce- ments which will strip our home de- fenses. These things, in my judgment, Mr. President, we must do, and without delay. First. Call the National Guard to the Federal service at once. Second. Mobilize needed members of the active Reserve. Third. Draft manpower to place our inactive paper Reserve on active-duty status. Fourth. Establish an American radar network at once. Fifth. Train and equip a home-defense Air Force. Sixth. Mobilize full-speed, saround- the-clock, industrial production to pro- vide military equipment of the best type available. Weapons on paper or drawing boards are of no immediate use. The American people are ready to use steel for tanks instead of for automobiles, Seventh. Establish and activate a civilian-defense program. It is almost criminal to have advanced 5 years into the atomic era without having such a program in full force and effect. Eighth. Congress should at once pre- pare legislation to provide 100-percent mobilization of our people and our re- sources for enactment within hours when and if it is needed. This program should be aimed solely at achieving the safety and security of the United States, It is no place for dreamy planners to im- pose the controls which will lead this Nation to socialism. It cannot be a pro- gram for losing the freedom we seek to assure. Ninth, Congress should make real and earnest efforts to balance our Federal budget. Hand-out programs should be ruthlessly abolished. Money saved should be applied to defense spending. The lower House should consider a wholly revised tax program. Tenth. Register all Communists in the United States. President Truman should call for immediate enactment of the so-called Mundt-Ferguson bill, When Communists in Korea tie the hands and feet of American boys and shoot them in the face, we can no longer coddle the Communist fifth column in the United States.
10492 Eleventh. Clean out the State Depart- ment. This is highly important. The small chance we have to postpone the full-scale encounter with Russia, until we are ready, depends on the skill of our diplomats, For many years our State Department has been infiltrated with men who either have unbelievably poor judgment or whose loyalty is open to serious question. It is not simply a mat- ter of sweeping the front stoop by firing the top officials. It is a matter of a complete housecleaning, President Tru- man owes it to himself and his country to have the best possible advice on all levels, The need for the housecleaning can no longer be ignored. In 1939 Stalin ruled 180,000,000 people. Today he rules 800,- 000,000 people. Our foreign policy of appeasement has resulted in stark dis- aster. The architects of failure must be swept out of office, When an Army officer loses a battalion, he is relieved of command, in disgrace. When a naval officer loses his ship or runs it aground in the mud, he is court- martialed. But when foreign-policy advisers lose a whole continent, they are applauded or even promoted. Mr. President, I have felt all along that there must be security risks in the State Department, I do not know the extent of these risks or of their disloyalty. Ap- parently, the Senate is not going to learn much about it as a result of any investi- gation by this Congress. But obviously, the great bulk of employees in the State Department are loyal Americans. These persons do not pose any security problem, But I do not like the way the State De~ partment, collectively, thinks. Ameri- ean thinking has never been defensive. American thinking has always been ag- gressive. Traditionally, our country never has sought merely to keep ag- gressors quietly appeased. Tradition- ally, our policy has been to do something about it. We do not exercise world leadership by “waiting for the dust to settle.” J believe it is essentially un-American to “wait for the situation to clarify.” These phrases mean nothing, except that we do not know what we are doing or what we are trying todo, That is not the way Amer- ficans think. Americans are imaginative, forward looking. Americans have ideas. Americans get things done. America should embark on a diplomatic offensive to cut the ground out from under Com- riunist diplomacy. The State Department needs a real house cleaning. This is not a job of sweeping the dust under the rug with a whisk broom, or airing out the house by opening the front door and sweeping the front steps. This job calls for yellow soap, a scrubbing brush, and plenty of elbow grease, from the basement to the attic. It should be finished off with a first-class cyanide fumigating job. We can do this for our fighting men tn Korea without spending a cent. It could be accomplished long before effec- tive reinforcements get to Korea. It would give our military morale a terrific boost, Let us clean house, Mr, President, Twelfth, Improve and expand our in- telligence operation. intelli- gence is almost new to AueHenns, We CONGRESSIONAL RECORD—SENATE cannot expect results overnight. But it is time we called on patriots of the high- est order to infiltrate Communist coun- tries, lose their identity as Americans and, if necessary, Hive the rest of their lives as nameless and anonymous he- roes of America’s fight for freedom. Thirteenth. Mobilize anti-Communists everywhere, This is another must. There is trained manpower immediately available. It is insanity to pick and choose our allies, when our American boys are desperately outnumbered on the battlefield. To implement this program, I urge the immediate mobilization of anti-Communist forces everywhere, Fourteenth. Immediately deny Soviet and satellite ships access to American harbors, except under closest inspection ; and establish a shore patrol to identify strange vessels which may bring atomic warfare to our coast. Fifteenth. Make use of the Chinese Republican Army, which has several divi. sions of well-trained, tough, experienced troops, much closer to Korea than our forces in the United States. The Repub- lic of China is a permanent charter mem- ber of the United Nations. The Chinese Nationalists’ offer of 35,000 men should be accepted at once. The theory that such acceptance might induce Chinese Communists to enter the Korean war is academic. The Chinese Communists already are in the front lines in Korea. Chiang is re- ported to have over 1,000,000 guerrillas on the mainland. We need their help, too. Sixteenth. Immediately name _ top- flight anti-Communist diplomats to all trouble spots. I make particular refer- ence to Formosg, where, as the Senator from California [Mr. KNnow1anp] has pointed out, we are represented by a consul instead of an Ambassador. It is unthinkable that we should diplo- matically insult our best friends. Seventeenth. Make Spain a full part- ner in the fight against communism, Our first move should be to reestablish normal diplomatic relations. Our sec- ond move should be to establish air bases in Spain, Such bases are essential to the defense of western Europe. Spain should be invited to join the Atlantic Pact. The Spanish infantry ranks with the finest in Europe. We should equip Spanish troops and use them in the fight, if their assistance is offered. Parenthetically, I may add that in this show-down conflict there are only two sides—Communist and anti-Communist. I am no longer impressed with argu- ments as to the religious or political backgrounds of governments. We have Socialist governments as full partners in this venture. They are anti-Commu- nist, so I accept them as allies. Conversely, Russia has subdued dem- ocratic peoples and uses them. The ar- tillery turned on our boys in Korea comes, in part, Iam informed, from the Skoda works in Czechoslovakia, a satel- lite which once made great strides to- ward democracy. ‘We must be practical, We are facing history’s gravest threat to our freedoms. To me it seems completely reasonable that we should marshal as much help JuLy 18 as possible. We should ask ourselves two questions: Does Spain oppose com- munism? Will the Spanish fight com- munism? The answer to both questions is “Yes,” Eighteenth. Serious consideration should be given the proposal endorsed by the American Federation of Labor to the effect that we arm and train per- sons in European displaced-persons camps. These stateless souls have G tremendous stake in freedom. They are the victims of communism as well a8 nazism. When the Russian sweep to the West comes, we should at least pro- vide them a means of defending them- selves, Nineteenth. It has been suggested in some quarters that we should arm the Japanese people. I would accept Gen- eral MacArthur's judgment on this phase of our total preparedness program. He should be asked for his opinion, and we should act on his advice. My latest in- formation from an authoritative source was that he opposed arming and train- ing Japanese divisions. That was some time ago, and his attitude may have changed. But we should make inquiry. Iam sure my attitude has changed, but I am not in the position to speak with his authority on this subject. Twentieth. Establish immediate quid pro quo relations with Russia and all satellite nations. This means that we allow Stalin and his associates the same diplomatic privileges which he extends to the United States, not a jot more. Unrestricted relations with Stalin and his slave states can only mean additional espionage cells in the United States. Twenty-first. Stop all trade between the Soviet Union and its satellites, with the United States and its allies, which, directly or indirectly, has military sig- nificance. Obviously, the east-west trade, which the State Department has been promoting in Europe, has had a tendency to siphon off ECA aid and bolster the eastern European economy. Obviously, it should be stopped. Twenty-second. Strengthen our over-« seas propaganda. This can be a power- ful weapon in our total effort. We need @ much better and more effective pro- gram of truth. We need more vigorous, resourceful, and effective personnel to carry it out. We must tell the 800,000,- 000 common people behind the iron cur- tain that we are their friends. We must tell them that the issue is joined, and that we shall render as much assistance as is possible to any attempt to throw off the yoke of Communist aggression. Twenty-third. Advise nations outside the Communist orbit that our resources are not without limit; that they are defi- nitely limited; that we will not assist countries which continue to pamper and coddle a fifth column; and that it is time to stand up and be counted. We must tell them this, and we must mean it. Twenty-fourth. We must give realis- tic support to the United Nations, There is still hope that this organization may become the instrument for peace in which so many have placed thet hopes. Twenty-fifth. We must reestablish a sound bipartisan foreign policy. the minority party must retain its right to be eritical of the administration when
1950 it deserves criticism, I believe in times such as this we should call the best men of both parties to our councils of state. This requires a sound and well-under- stood system of prior consultation before decisions are made or announced.. By this means Americans can give whole- hearted support to our all-out efforts for peace and freedom, The American people are ready, Presi- dent Truman. They are ready for a sound, consistent, realistic program. We ask you to give it to them. REPORT OF COMMITTEE ON FOREIGN RELATIONS ON INVESTIGATION OF SUBVERSIVE ACTIVITIES The PRESIDING OFFICER. The Senator from Arizona has the floor, ‘Mr. TYDINGS. Mr. President, will the Senator yield? Mr. HAYDEN. I yield. Mr. TYDINGS. Mr. President, from the Committee on Foreign Relations, I desire to submit a report, which I ask to have printed as a Senate document, and I also offer two resolutions for ap- propriate reference. Mr. SALTONSTALL. Mr. President, will the Senator yield? Mr, TYDINGS. I yield. Mr. SALTONSTALL. I should like to say to the Senator that I desire a quorum call, because I know there are several Senators who want to discuss it with him before he submits the report. Mr. TYDINGS. To discuss what? Mr. SALTONSTALL. To discuss the question before the Senator submits the report. As I understand, the Senator has just asked to submit a report, to be printed as a Senate document. May I ask, is that the report from the so-called Mc- Carthy committee? Mr. TYDINGS, The Senate commit- tee has instructed me to submit a re- port, and I have submitted it. Mr. SALTONSTALL, Mr. President, will the Senator yield? Mr. TYDINGS. I yleld. I do not quite get what the Senator’s point is. Mr. SALTONSTALL. Sitting tempo- rarily in'the chair of the minority leader, the Senator from Massachusetts has been asked to obtain a quorum call, in order to notify Senators, when the Sena~ tor from Maryland makes such a re- quest. All I am asking of the Senator from Maryland ‘s—— Mr. TYDINGS. I have the floor by courtesy of the Senator from Arizona. Mr. HAYDEN. My understanding was, if the Senator from Massachusetts will yield, that when the Senator from Maryland inquired of me, he was merely going to submit a formal report to the Senate, and that he did not intend to discuss it. Mr. TYDINGS. That is correct. Mr. HAYDEN. There would be no 00- casion for any discussion, because, when directed by a committee to submit a re- port, a Senator submits it. Mr. SALTONSTALL. Mr. President, will the Senator yield? Mr. HAYDEN. I yield. Mr. SALTONSTALL. Mr. President, sitting tn the chatr of the minority leader, I have been asked that the Senator from Wisconsin (Mr. McCarrity] be given an. XCVI-———661 CONGRESSIONAL RECORD—SENATE opportunity to be on floor if and when the Senator from Maryland made his report. I am trying to carry out my duty. All I ask is that I be permitted to suggest the absence of a quorum or that the Senator from Maryland delay until I can get the Senator from Wis- consin to the floor. Mr. TYDINGS. Mr. President, will the Senator yield? Mr. HAYDEN. I yield. Mr, TYDINGS. I shall be glad to ac- commodate the Senator from Massachu- setts, and, of course, also the Senator from Wisconsin. What I did, however, was simply to send the report forward. It will require action by the Committee on Printing before anything can be done with reference to it. I have simply filed it. I have been instructed by the com- mittee to file it, and I can do that whether there is a quorum or whether there is not. So far as the resolutions are concerned, they will be referred to the appropriate committees and will come back to the floor approved or disapproved, and then the whole controversy can break out. Mr. SALTONSTALL. Mr. President, will the Senator yield? Mr. HAYDEN. I yield. Mr. SALTONSTALL. I have not in mind what the Senator from Wiscon- sin wishes to do, but he asked me to give him an opportunity to be on the floor, possibly to interrogate the Senator from Maryland (Mr. Typrnes]. Mr. TYDINGS, Let me ask the Sen- ator from Arizona if he can give me some idea when I may have an opportunity to present the matter, because I have a great deal of work to do, and I do not want to remain here all day and then possibly not have an opportunity to present the report. Mr. SALTONSTALL. Mr. President, will the Senator yield? Mr. HAYDEN. I yield. Mr. SALTONSTALL. I will say to the Senator from Maryland that I have asked the Senator from Wisconsin to come to the floor at once. Mr. WHERRY. Mr. President, will the Senator yield? Mr. HAYDEN. I yield. Mr. WHERRY. Mr. President, if I understand correctly, the report when made is automatically printed—— Mr. TYDINGS. It has already been printed. Mr. WHERRY. That is for the bene- fit of the subcommittee. The report, I understand, does not have all the data in it which it had when the subcom- mittee presented it to the full committee. Mr, TYDINGS. With the exception of two paragraphs. Mr, WHERRY. I understand that some remarks derogatory of the Sena- tor from Massachusetts (Mr. Lopaz} and of the Senator from Iowa (Mr. HICKEN- Looper] were stricken from it. Mr. TYDINGS. They were not stricken from it. I should like to set the Senator straight on that point. Mr. WHERRY. ‘We have to guess at these things when we do not know. I should like to ask the Senator this ques- tion: If there is anything in the report regarding any Senator—and there might be—is it only fair that in a report of 104938 this type the Senator from Maryland serve notice now that he is going to file it and let Senators have copies of it? I have not seen it myself. I saw the first page or two when we were busy considering appropriation items, Would it be in order to ask unanimous consent that the actual filing of the report be delayed until Senators can take a look at it? I want to be fair about it, and not unreasonable. Mr. TYDINGS. The Senator is per- fectly within reason in making his re- quest. Let me make an inquiry of the Sen- ator from Arizona. It is my under- standing that what I have done will not bring about the printing of the report. I have simply filed it, and there will be no action as to printing it until the Com- mittee on Printing presents a resolution. Mr, HAYDEN, If more than the usual number, which is approximately 1,500 copies, are to be printed. Mr. WHERRY. I am not arguing about the number. Mr. TYDINGS. Mr. President, I want to accommodate the Senator from Ne- braska. I ask the Senator from Arizona if this is not the situation: All I have done has been to file the report. The number of copies which can be printed without filing the report are already au- thorized, or can be, But when I file the report there can be no more copies printed until the Joint Committee on Printing reports a resolution favoring the printing of additional copies. Mr. HAYDEN. Which is usually ap- proximately 1,500 copies. Mr, WHERRY. Mr. President, will the Senator yield? Mr, HAYDEN. I yield. Mr. WHERRY. Mr. President, that is what I do not like to see done. There might be something else stricken from the report voluntarily by the committee, if some Senator raised some point re- garding the report. But before any copies are printed I ask if there cannot be a delay. The report is filed, so that automatically it comes on for printing. I should like to ask that no copies be printed for 24 hours or 48 hours, if that is not an unreasonable request, so that each Senator can take a look at the report; and if there is something in it which he feels should not be printed, he can go to the chairman of the committee and talk to him about it, and the com- mittee might, by agreement, delete it. If 1,500 copies are printed, there might as well be 150,000 copies printed, se far as I am concerned, Mr. TYDINGS. They have already been printed for the committee. Mr. WHERRY. But this report has not been printed, Mr. TYDINGS, It cannot be without a resolution. Mr. WHERRY. I understand. I am ® member of the committee, and I shall be called upon to pass on the question. But a few copies can be printed. Mr. HAYDEN. Mr. President, the Committee on Foreign Relations this morning received the report from its subcommitiee. It directed the subcom- mittee to file the report. There is no
10494 stopping the subcommittee from filing the report———— Mr. WHERRY. The Senator is not telling me anything that I do not already ow, Mr. HAYDEN. Let me finish. If ad- ditional copies are desired, it will require a resolution of the Senate. The Senator from Maryland has said he would be glad to withhold filing the report until the Senator from Wisconsin can be present, Mr. WHERRY. Will the Senator make it, let us say, 24 or 48 hours, 50 that we can see a copy of the report? Mr, TYDINGS. Let us get the situa- tion straightened out, because I do not want to leave the Senate under any misapprehension or have any misunder- standing about it later. I ask the Senator from Arizona, who is chairman of the Joint Committee on Printing, if I am not correctly stating the situation when I say, first, that there is printed automatically a number of copies when a subcommittee makes a report to the full committee-—— Mr. HAYDEN. That number is around 1,560. Mr. TYDINGS. I have forgotten what the number is; but what I am doing is filing the report with resolutions to print additional copies. No additional copies, as I understand, can be printed until the committee meets and considers the resolutions and makes a recom- mendation. I want to accommodate the Senator from Nebraska, and I shall not press the committee or demand further action until the Senator from Nebraska and other Senators have had a chance to look at the report. Mr. WHERRY. Mr. President, that is allI wanted. Iam not quarreling about the copies which have already been printed for the subcommittee. I am simply asking, and the Senator from Maryland has agreed, to delay printing any copies of the report until we can take a look at the report, consult with the distinguished Senator from Mary- land, and arrive at some date when the report will be printed, Mr. TYDINGS. I again say to the Senator, in order to avoid any misunder- standing, that the only way by which additional copies can be printed would bebe the adoption of a resolution to that ect. Mr. WHERRY. But this report is different, in some respects, from the one which has already been printed. Mr. TYDINGS, ‘That is correct. Mr. WHERRY. And this is the report which I am asking be held up. Mr. HAYDEN. The Senator from Maryland has agreed to that. Mr. BREWSTER. Mr. President, will the Senator from Arizona yield? Mr. HAYDEN. I yield. Mr. BREWSTER. Mr. President, I should like to ask the Senator from Maryland 6 question. I noted in the statement of the Sena- tor from, Maryland, and I was very much gratified, because it had been a matter of discussion, that two or three of the passages referring to two members of the subcommittee had been deleted from the report with the advice of the chair- man of the committee, ‘but I have taken the pdsition very firmly that, in my judg- CONGRESSIONAL RECORD—SENATE ment, the Senator from Maryland was not cognizant.of two sentences which were in the report when it was made and signed. Mr. TYDINGS, I may have read it, but I have no recollection of it. The report was written and rewritten sev- eral times. Corrections were made in it. My recollection is that when I saw the report I did not see the two sentences referred to. However, I do not think the two sentences were inaccurate. Mr. BREWSTER. I do not question that fact. Mr. TYDINGS. I do not think they were derogatory. I think they stated the facts. However, I thought cour- tesy of a senatorial nature perhaps would best dictate their elimination. When they were called to my attention, I sug- gested that the two sentences be elim- inated, Mr. BREWSTER. That brings me to one further peint. Since the Senator from Maryland says he was not con- scious of the fact that those two pas- sages were in the report, I wonder whether in a 200-page report there may not be similar passages with which the Senator from Maryland is not familiar and which may be called to his atten- tion if the request of the minority leader is granted. In that event, the Senator from Maryland may wish to reconsider such passages as to the propriety or desirability of their inclusion in the report. Mr. TYDINGS. I do not think there are any other such passages in the re- port. I believe I have read the reports 2 or 3 times. I have read it twice since it was printed. I have no recollection of seeing any passages of a nature which I thought advisable to remove. 8o far as I am concerned, the passages which were deleted were accurate. There was no reason why they should not have stayed in the report. However, we have a certain amount of comity in doing things, and I thought the sentences con- tained an inference which I did not be- lieve to be in the best interests of the Senate. Mr. WHERRY. Mr. President, will the Senator yield so I may ask another question? Mr. HAYDEN. I yield. Mr. WHERRY. I ask this question in the light of the Senator's last observa- tion. I thought I understood what had been done. However, I had no more than sat down when someone came over and said that I did not have a correct under- standing of the situation. Therefore, I should like to ask one more question of the distinguished Senator from Mary- Jand. It is my understanding that the distinguished Senator from Maryland is withholding the filing of the report of the committee and the resolution until we have had a chance to look over the subcommittee’s report, Mr, TYDINGS. No. I tried to make that plain so that we could avold any misunderstanding on the subject. I shall go over it again. I have filed the report with the Senate. However, no extra copies of the report can be printed-—— Mr. WHERRY, That is correct. Mr, TYDINGS. Just a minute. The Senator has asked me a question. No JULY 18 extra copies of the report can be printed until the Senator from Arizona calls his committee together, the committee ap- proves a resolution, and the resolution is adopted by the Senate. I have no in- tention of pressing for the adoption of the resolution, or any other action on it, except to have the resolution lie on the eSkK. Mr, HAYDEN. I misunderstood the Senator from Maryland. I understood the Senator from Maryland to say that he was temporarily withholding the filing of the report. Mr. TYDINGS. I shall-be glad to withhold filing it in order to accommo- date the Senator. Mr. WHERRY. That is all I am ask- ing for. Mr. HAYDEN. However, the Senator from Maryland has a perfect right to file it at any time. I am filing it, but I Mr: TYDINGS. am not pressing it. Mr. HAYDEN. I understoed the Sena- tor from Maryland to say that he would withhold filing the report. When a re- port is filed it must be printed as filed. Mr. WHERRY. Mr. President, will the Senator yield so that I may ask another question? Mr. HAYDEN. Yes. Mr. WHERRY. When a report is filed, how many copies are printed? Mr. HAYDEN. Fifteen hundred. Mr WHERRY. That is the point I am. making. Mr. TYDINGS. No other copies will be printed, however, so far as I know. Mr. MCKELLAR. Mr. President, I ask for the regular order. The appropria- tions bill is before the Senate, and is be- ing interfered with. It is being inter- fered with at the wrong time. I ask for the regular order. The PRESIDING OFFICER. The reg- ular order has been requested. The Sen- ator from Arizona has the floor. Does the Senator from Arizona yield to the Benator from Nebraska? Mr. WHERRY. Mr, President, a par- liamentary inquiry. The PRESIDING OFFICER. The Senator will state it. Mr. WHERRY. Can a Senator grant the floor to another Senator? Mr, HAYDEN. I had the floor, Mr, WHERRY. That is correct. I should like to ask the Senator a ques- tion. I do not mind going back to the regular order, First, I should like to ask most respectfully for unanimous consent that the distinguished Senator from Maryland may withhold the filing of his report, because the filing of the report means the printing of 1,500 copies, J ask that he withhold the filing of the report until Senators have had an op- portunity to study the report of the subcommittee. Mr, TYDINGS. As I tried to tell the Senator, so far as I know, not a single copy can be printed in addition to the copies that have been printed unless the Committee on Rules and Administration acts on these resolutions. Mr. HAYDEN. The Senator is in er- ror in that respect. The subcommittee report was printed for the information of the Committze on Foreign Relations.
1950 It was submitted to the members of the Committee on Foreign Relations. They authorized the Senator from Maryland to file it as a report from the Committee on Foreign Relations. He can do that at his convenience. He can do it at any time. He has a perfect right to do it now. He has been directed to file it, but as to when he should do it is a matter which lies in his own judgment. Mr, WHERRY. I understood the Sen- ator to say that he was temporarily withholding the filing of his report. I know he can file it at any time. Mr. TYDINGS. Very well. I shall hold it up for 24 hours, until tomorrow. Mr. WHERRY. I thank the distin- guished Senator. Mr. BREWSTER. Mr. President, may I ask one more question? Mr, HAYDEN. Yes. Mr. BREWSTER. What is the effect of any of this on the right of any minor- ity subcommittee member to file indi- vidual views. Mr. HAYDEN. That has been agreed to in the subcommittee. The minority views will be printed separately. RADIO STATION KLZ, AT DENVER, COLO. Mr. JOHNSON of Colorado. Mr. President, it goes without saying that I have always championed those members of the broadcasting industry who have fulfilled the precept of “operating in the public interest, convenience, and neces- sity.” Accordingly, I should like at this time to call the attention of the mem- bers of this body to the work of Station KLZ, at Denver, managed by a very able gentleman who enjoys the esteem of his fellow broadcasters throughout the country, Hugh B. Terry. Hugh Terry was the sole American broadcasting representative at the UNESCO radio parley at Paris in May 1949. In addition, in 1948 he was named “layman of the year” by the Colo- rado State Medical Society, for his con- tributions in providing a better under- standing of health problems. Variety magazine named him “Showmanager of the Year,” in 1949. Mr. Terry has a long and useful record as a member of Denver’s community life, including his service as president of the Denver Rotary Club, and his direction of the Community Chest drive and the State eancer drive. He is currently a mem- ber of Denver's board of health and hos- pitais. Again, in 1960, Terry distinguishes his station by the inauguration of a new radio series called Let’s Talk It Over, wherein he and members of his staff speak every week to the ELZ listening audience about problems of broadcast- ing. He invites listeners to address to him their comments, criticisms, and sug- gestions; and then he proceeds to answer them on the program. On his first pro- gram, for example, Terry discussed the reasons why the Denver market has no television. He did so in a simple, down- to-earth style, devoid of undue technical references—a program that was a public service at its best. I feel his radio series, Let’s Talk It Over, is a concrete example of a pro- gram in which a metropolitan station makes a positive effort to bring the CONGRESSIONAL RECORD—SENATE listeners more closely and more fully into the operation of the station. It in- Gicates a solid desire to have programs which are sincerely in the public inter- est. The history of Station KLZ, as evidenced by the numerous awards it has received in the past decade, is a rec- ord of splendid public service. The new series, Let’s Talk It Over, represents a continuation of that high public-serv- ice consciousness. As evidence of that, let me call to the attention of the mem- bers of this body an article by Ken White, a member of the Denver Post staff, which appeared on June 6, 1950. Because Mr. White so forcibly explains the high purpose of this series, I ask that his article of that date be inserted as a part of this Recorp. There being no objection, the article ‘was ordered to be printed in the Recorp, as follows: [From the Denver Post of June 6, 1950] Ken WHITE ON THE AIR—HOWS AND WHEREFORES Hugh Terry, the boss wrangler over at KLZ, has started himself a radio program which can do a lot to help people understand how & radio station—any radio station——operates, week in and week out; why it can and does put certain things on the air; why it makes schedule changes which frequently are con- fusing to the listener. Terry calls his program Let's Talk It Over, The first broadcast was heard last Saturday at 12:15 p.m. The KLZ veep and general manager says he wants to make it a talx-it- over feature in the true sense of the word. He wants listeners to ask anything they please about radio, and particularly about KLZ. He'll answer, with the help of his department heads. Terry is a pretty straight talker, and I believe he'll answer criticism, if any, of KLZ’s operations about as objectively as any stae tion manager could be expected to. Nothing he might say would merit respect, otherwise. He also, by the way, is an accomplished mike performer. Knowing his subject, he didn’t bother with a script on the first pro- gram—dealing with television prospects— and the colloquy with Matt McEniry, the announcer, profited from the resulting natue ralness. No matter the point of control, radio is & pretty remote business. Stations traditionally take their punish- ment and praise in silence. They profit from some of both; actually try, most of them, to be guided by what they hear from listeners. Individual performers reach listeners, but at management level there's traditionally an aloofness that makes it dificult for listeners to feel anything for a station's call letters. Often stations get criticlam anonymous and otherwise; that is unfair—not unfair in- tentionally but because listeners Jack infor- mation on which to base criticism. To them many a change that can be defended ae nec- essary—if a station tells them about it— seems merely high-handed effront. Pro- grams go in, programs go out, favorites dis- appear. Not always is the originating or re- laying station to blame, as Terry will try to make clear. He will, of course, take & realletic ap- proach—a radio station makes its money by programming programs that bring in money. If it has a conscience, it tries to program some programe of limited appeal which it belleves are in the public interest. If its manager ts crazy, he believes he can ease everybody at the same time. Hugh fs not crasy. He feels he's the way he should; will explain on Let’s Talk It Over 10495 why things are done the way they are, up there in the Shirley-Savoy, Not that he'll be talking defensively all the time. Doubtiess many letters merely will ask for clarification of various proce- dures. By contributing to a better understanding Of radio, via this program, Terry will win friends for the station—friends who will feel closer to it—and to other stations, as well, perhaps, . UNITED STATES SUFFERING DEFEAT ON PSYCHOLOGICAL FRONT Mr. FERGUSON. Mr. President, I ask unanimous consent to have printed in the body of the Rrcorp an article entitled “United States Suffering Defeat Throughout World on Psychological Front; Bold Action Held Needed by Tru- man To Organize Peace Information Office.” The article is by David Law- rence, and is of such importance that I think it should be printed in the Recorp, so that all Members of Congress may read it. There being no objection, the article ‘was ordered to be printed in the Rrcorp, as follows: Unrrep Stats Suyrenina Dereat THROUGHOUT Wortp on PsycHoLocicaL Faonr—Boip Action Hetp Nexsprp sy TaumMAN To ORnGAN= ax Peace INFORMATION Orrice (By David Lawrence) Much worse than the set-backs on the Korean front are the defeats being suffered throughout the world on the psychological front both by the United States and the United Nations. Never, it might be said, in so grave an international situation has there been such a conspicuous lack of imagination and such timidity as is being exhibited by the United States Government in fighting the psycho- logical war. The Soviet Union has grasped the initia- tive and has made flank attacks around the United States in the propaganda battles in Asia as well as in Europe. The lazy answer to this fs that the United States hasn't provided the funds—the Marshall plan of ideas, as Senator Benton, of Connecticut, calleit. But the truth is that even if $100,000,000 is appropriated, it would be ineffective if our Government falls to express itself forthrightly in the propaganda field. THREE WEEKS OF INACTIVITY More than 8 weeks have passed since the Kremlin put the North Korean government up to an aggression that has startled the world. The United States and the United Nations responded with military effort, as yet unaticcessful, but at the same time the Soviet triumphantly grasped the initiative on the propaganda side, The Russians accuse the United Nations along with the United States of sanctioning aggression. Peace petitions are being circulated with tens of thousands of signatures by the Communists in a publicity stunt which js not being com- bated effectively by the weatern democracies. In the face of the plain aggression in Korea, nobody in our Government or in the UN has officially, formally, and loudly calied Moscow the aggressor, The United Nations, moreover, has invited American boys to be killed but politely hesitates to warn the na- tions helping to kill American boys that those nations are aggressors, too. While it is obvious that no nation can be asked to sup- ply military help against its will, it 1s traitor. ous for any member of the United Nations at the same time to be supplying arms and military power to the country which is fight- ing the United Nations forces, : Senator Homer Feecuson of Michigan has pointed this up in a speech in the Senate in
10496 which he demands that the Washington Gov- ernment request the UN to adopt a resolu- tion warning any nation helping the North Koreans that it will be regarded as a partner in the aggression. The UN got considerable prestige by adopt- ing a resolution calling for military forces to resist aggression in Korea, but it will rapidly lose that prestige if it stands idly by and lets the Kremlin supply munitions to the North Koreans in an obvious attempt to defeat the United Nations forces, including the United States. POLICY MAKERS FLOUNDER The propaganda war is belng poorly han- QGled not because there are not enough tech- nicians to do the job or because there are ine adequate transmission facilities. It 1s fall- ing down because nobody tn the Truman administration with authority to act has vision enough to realize what a propaganda War means. It doesn't mean just a battery of mimeograph machines and a $7,000,000 building in New Work. It means that the men who make policy—men with the cour- age of their convictions—must call 4 spade a spade in public. The policy makers are floundering. Three weeks of valuable time have been lost while the American Govern- ment cravenly refrains from denouncing the Kremlin leaders as the true aggressors. The answer usually heard is that this might offend the Kremlin—as if “appeasement” is the way out of Korea. What is needed is a new executive board or commission of three eminent men to give full time to the work and be responsible di- rectly to the President and not to any Cab= inet officer. The head of the Office of War Information was responsible in World War II directly to the President. He must be free again to tell the President what any member of the Cabinet is doing or failing to do that is hurting on the psychological side of warfare. He must be free to speak out in the meetings of the National Security Council, of which he should be a member. The task canont be performed by a sub- ordinate unit in the State Department. The top level officers of that institution are too busy writing legal notes in the fleld of diplo- macy and too much steeped in traditions and forms to use the vocabulary of propa- genda war, America is losing on the military side in Korea but not for long. America is losing, however, on the psychological front and there ie no sign of any turn in the tide. It will take bold action by the President to organize an Office of Peace Information and to give it the proper instructions to engage in a ‘world-wide crusade of truth. MESSAGE FROM THE HOUSE—-ENROLLED BILLS SIGNED A message from the House of Repre- sentatives, by Mr. Maurer, one of its reading clerks, announced that the Speaker had affixed his signature to the following enrolled bills, and they were signed by the President pro tempore: H.R.940. An act to authorize construction of the Eklutna project, hydroelectric gen- erating plant and transmission facilities in connection therewith, and for other pure poses; and . H.R. 6866. An act to adjust and define the boundary between Great Smoky Mountains ‘National Park and the Cherokee-Pisgah-Nan- tahala National Forests and for other pur- poses. GENERAL APPROPRIATIONS, 1051 The Senate resumed the consideration of the bill (H. R. 7786) making appro- priations for the support of the Govern- ment for the fiscal year ending June 30, 1951, and for other purposes. CONGRESSIONAL RECORD—SENATE Mr. HAYDEN. Mr. President, before the Senate proceeds to the consideration of the committee amendments to chap- ter VII, making appropriations for the Interior Department, I wish to make a brief statement respecting this chapter as reported to the Senate. , The House considered budget estimates totaling $669,251,505, approving appro- priations in the amount of $622,134,130, After the bill passed the House, supple- mental estimates in the amount of $5,- 720,000 were received by the Senate, in- creasing the total 1951 budget estimates to $674,971,505. Although the Senate committee ap- proved $5,698,000 of the $5,720,000 in supplemental estimates, the total of chapter VII as reported to the Senate is $617,006,030, or $5,128,100 less than chap- ter VIL as passed by the House and $57,- 935,475 less than the 1951 estimates, Percentagewise, the total approved by the Senate committee is eight-tenths of 1 percent under the House total and eight and fifty-nine hundredths percent below the 1951 estimates. Of the $617,006,030 in cash appropria- tions approved by the committee, ap- proximately $65,000,000 is for the liqui- dation of prior contract authority. The total new contract authority for the Interior Department as reported by the Appropriations Committee is in the amount of $37,830,000, which amount is $420,000 less than the amount allowed by the House, $6,920,000 less than the 1951 budget estimates, and which is $27,421,700 less than contract authority granted for the fiscal year 1950. Mr. President, I may say that some of the reductions were larger than I per- sonally felt should have been made. On the other hand, some of the reductions were not so large as some members of the subcommittee felt should have been made. In this respect, the bill is a com- promise and represents a very honest and earnest effort on the part of the subcommittee to make the reductions in the amounts and in the specific ap- propriations where it was felt reductions could best be made. As I have stated, the final result is a bill which in cash is $5,128,100 under the House bill, despite the inclusion of $5,698,000 in supplemen- tals not considered by the House, and $57,965,475 under the 1951 budget esti- mates, and in contract authority chap- ter VII is $420,C00 under the House bill and $6,920,000 under the 1951 budget estimates, BUREAU OF RECLAMATION Of the $617,006,030 recommended by the committee, $324,104,000 is for the Bureau of Reclamation, and this amount includes $5,445,000 in supplemental] esti- mates not considered by the House. There are no new projects included in the 1951 budget estimates or in the com- mittee’s recommendations, The amount of $324,104,000 recommended by the committee, although it includes $5,445,- 000 in supplemental estimates, is $1,004,- 000 under the House bill, $35,214,500 un- der the 1951 estimates, and is $32,650,510 Jess than was appropriated to the Recla- mation Bureau in the fiscal year 1950. Mr. President, I may mention, in this connection, because the larger reductions JULY 18 of the bill come out of the Bureau of Reclamation appropriations, that it is @ result of an effort on the part of the subcommittee, and the committee hav- ing the bill in charge, to take into con- sideration the effect in dollars of the Taber-Thomas amendment as adopted by the House of Representatives. The bill as it passed the House was sent to the Department of the Interior with the request that they examine it to determine how much money they would Jose if the Taber-Thomas amendment were put into effect, and having deter- mined that amount, to see if a similar sum approximately as great could be taken from the bill where it would hurt, but would not hurt so much; and that is what we have accomplished. Mr. CORDON. Mr. President, will the Senator from Arizona yield? Mr, HAYDEN, I yield to the Senator from Oregon. Mr. CORDON. It is, however, 8 fact, is it not, that the Interior Department, in carrying out the request of the chair- man of the subcommittee, did so by re- ducing construction items, and not by reducing other activities included in the bill? Mr. HAYDEN. That is not entirely correct, but largely so, Mr. CORDON. To what extent is it in error? Mr, HAYDEN. It is in error in that there are some reductions made that are not in construction items, but the pri- mary effect is upon the construction items, and it was possible for the reason that upon examination of the carry-over of unexpended balances on some of the projects it was felt it would be safe to make the reductions in those places. Mr, CORDON. Will the chairman of the subcommittee at the appropriate time advise the Senate as to the reduc- tions voluntarily made by the Interior Department in items other than con- struction? Mr. HAYDEN. I shall be very glad to do so, because I have a tabulation which covers the entire amount. Mr. CORDON. Is the tabulation in shape so that it might be placed in the Recorp today for the benefit of the Sen- ate tomorrow? It would be helpful in studying the effects of the bill, particu- larly with respect to activities other than the activities of the Bureau of Reclama- tion, which, as I recall, has taken all the cuts. The Senator advises there are oth- er matters. I was not aware of them, Mr. HAYDEN. I will ask the clerk to make a search through the table and advise the Senator later in that regard. BUREAU OF INDIAN AFFAIRS For the Bureau of Indian Affairs, the committee recommends appropriations in the amount of $80,746,055, which amount is $3,953,055 in excess of the House allowance but which is $5,250,320 less than the 1951 budget estimates. The larger increases recommended by the committee are for restoring funds for California Indians, all of which had been deleted by the House, additional funds to meet deficiencies in State edu- cational contracts for the education of Indian children, additional funds for In-
1950 d dian school construction, and improve- ment of roads on Indian reservations. Mr. CORDON. Mr. President, will the Senator yield for a question? Mr, HAYDEN, I yield. Mr. CORDON. Would it not be well to advise the Senate with respect to the necessity of restoring the amounts in connection with the activities having to do with the Indiang in California, where a cut was made by the House which elim- tnated all funds for those Indians, and the cut was made under a misapprehen- sion both as to the fact and the law? Mr, HAYDEN. Mr. President, it ap- pears from the record that three gentle- men appeared before the House Com- mittee on Appropriations asserting that they represented the Indians in Califor- nia, and that the Indians in California wanted no assistance whatever from the United States. Taking them at their word, the House committee struck out, anywhere in the bill under the Bureau of Indian Affairs, any item affecting the Indians in California. It was stated in the report that the House eliminated 62,554,975 from the budget estimates, When the matter came before our com- mittee the Representatives in Congress from California appeared, the Senators from California appeared, the officials of the Bureau of Indian Affairs appeared, and it was determined definitely that the gentlemen who assumed to speak for the Indians of California had no authority whatsoever to speak for them. For that reason we have restored proportionately the money recommended in the budget estimate for the Indians of California. Where a reduction was made a propor- thonate reduction was made in the Cali- fornia Indian appropriation.. BONNEVILLE POWER ADMINISTRATION Another large item in the bill is for the Bonneville Power Administration, for which the committee recommends ap- propriations totaling $44,000,000 and contract authority in the amount of $20,000,000. The amount recommended by the com- mittee for construction, $39,500,000, is $2,000,000 less than the amount approved by the House and $2,500,000 less than the 1951 estimate. For operation and maintenance the committee approved $4,500,000, which amount is $500,000 less than the House allowance and $750,000 less than the budget estimate. GOVERNMENT IN THE TERRITORIES Of the $617,006,030 total appropria- tion proposed by the committee, a total of $53,588,285 is for government in the Territories, including the administration of Alaska, Hawaii, Virgin Islands, and Guam, construction of roads in Alaska, and the continued rehabilitation of the Alaska Railroad. The total of $53,588,285 recommended by the committee is $3,741,215 less than the total of $57,329,600 approved by the House, and is $5,189,315 less than the 1951 budget estimates of $58,777,600. Mr. CHAVEZ. Mr. President, will the Senator from Arizona yield for a ques- tion? Mr. HAYDEN. Certainly. Mr. CHAVEZ. In making his state- ment the Senator referred to the ex- CONGRESSIONAL RECORD—SENATE penditures by the Government for the Territories, and he mentioned Hawail, Alaska, and Guam, but did not mention Puerto Rico. Was there any particular significance to that? Mr. HAYDEN. Yes, In the case of Puerto Rico all of the internal-revenue collections go to the Territory, and that amount is sufficient to support the gov- ernment of the Territory, and an appro- priation is not required from the Treas- ury of the United States. It is different in the case of the Virgin Islands. Since I have mentioned the Virgin Islands, I should say they have been paid for two or three times over by the internal-reve- nue collections on the rum produced there, all of which revenue goes into the Treasury of the United States. On the other hand, it appears each year as though we are making a donation or gift to the island. If the same rule applied to the Virgin Islands as is applied to Puerto Rico, the Virgin Islands would have a magnificent surplus in the Treasury. Mr. MAGNUSON. Mr. President, will the Senator yield? Mr, HAYDEN. I yield to the Senator from Washington. Mr. MAGNUSON. I think it should be pointed out, so that the public may know, because of the importance of Alaska as a strategic outpost of this country, that what the Senator is dis- cussing is the internal appropriations, and that {t has nothing to do with the millions which have been appropriated for military expenditures, which also in- cludes the improvement of roads. Mr. HAYDEN. What we include in the pending bill is for continuing the improvement and operation of the Alas- kan Railroad and many highway items, but it does not apply to military con- struction in any sense. Mr. MAGNUSON. But in some cases the military construction and the money appropriated in the pending bill almost overlap. Mr. HAYDEN. The military authori- ties strongly recommended placing the railroad in good operating condition, But we do it in this bill rather than in some other Dill. BOUTHWESTERN POWER ADMINISTRATION With respect to the Southwestern Power Administration, I am glad to re~ port to the Senate that the Secretary of the Interior, the Administrator of the Southwestern Power Administration, and the private power companies in Okiahoma have agreed upon a means of integrating the hydroelectric power pro- duced at Government dams with steam power produced by the private utilities in a manner which will provide for serv- icing public bodies with Government power as contemplated by section 5 of the 1944 Flood Control Act and which will serve as a pattern for similar contracts with public utilities in the southwest power area, Senators will remember that last year there was considerable controversy in this body as to what should be done with respect to appropriations for the South- western Power Administration. The Senate decided in that respect, as it did with respect to the Reclamation Service, 10497 that in order to negotiate upon an equal footing with the private utilities, the Southwestern Power Administratton should be supplied with sufficient funds 80 if satisfactory wheeling or integrating contracts could not be made, that the necessary transmission lines would be constructed by the Southwestern Power Administration. I expressed the opin- ion at that time that if the money were granted and placed in the hands of the Southwestern Power Administration, it would be possible to work out such an agreement with the private power com- panies there that the money would not actually have to be expended. I felt that the tendency was growing, particularly in the southern area of the United States, for all private power com~ panies and the public power development to live and to let live. I illustrated that by the fact that the Alabama Power Co., the Mississippi Power Co., and the Geor- gia Power Co. refused to join in the fight on the Tennessee Valley Authority steam plant, showing that they were getting along very well in that area in the matter of power, and that they would not pare ticipate in a fight of that kind. I be- lieved that if we gave the Southwestern Power Administration ample money to carry on a program if necessary, it would prove not to be necessary, and that is exactly what has happened in that area. They have come to an agreement, I think perhaps the best way to de- scribe that agreement is to quote from the words of Mr. Douglas G. Wright, the Southwestern Power Administrator, in an address delivered at Muskogee, Okla., dedicating the SPA building there on July 15,1950. Mr. Wright said: There isn't any point in rehashing all of the things which have gone before us. But this is probably one of the greatest weeks in the history of Oklahoma, Oklahoma has found the way, through a perfectly freely arrived at bargain. The American way of bargaining, where we fought like the very devil. Where we pushed and shoved—where we used every kind of a force known. Pushing one way, and then another, we finally arrived at an agreement. An agree- ment with the Oklahoma Gas & Electric Co. and the Public Service Co. of Oxla- homa which placed Oklahoma in the No. 1 spot in the Nation, in my judgment, in power potential, Oklahoma today has avail- able the resources of the $130,000,000 Okla- homa Gas & Electric Co., the $100,000,000 Public Service Co. of Oklahoma, and at least a $260,000,000 Government development program, to utilize for any power need she can think of. Her consumers have achieved what I have been pleased to call the No. 1 freedom of power, This is, namely, your right to decide where you will get your electric power, what you will do with it as you use it, and whether or not you will own any part of the factl- ities which serve you, He further said: Under that contract, the utility companies have agreed with the Government that the consumer does have the No. 1 lberty—the right to decide where he buys his electric power, and what he does with it after he buys it. We have agreed to that, Secondly, the companies and the Govern- ment have agreed that the Government has the right to sell ite power to whomever it desires, on whatever terms it desires. And, third, we have agreed that the com- panies have the right to sell their power to
10498 whomever they desire, on whatever terms they desire. Then he adds: We had a perfect marriage. It was love at first sight. The only trouble was nobody could figure out who should provide the dowry. Both sides wanted the dowry in this case. Well, we finally settled it in the American way. Each side gets part of the dowry. And you people who use power-.are going to get the benefit from all of this integration. I think Mr. Wright is to be congratu- lated upon the conclusion of this very fine contract. In that connection I desire to say that I have observed this matter very closely from time to time, and I found that the power companies in Oklahoma at all times were actually engaged in a serious effort to come together and to arrive at anagreement. There was no backing or filling and no dodging. I was convinced all along, although there were some who were not so convinced, that where there was the spirit to come to an accord an accord would be reached. I particularly want to state that R. K. Lane, of the Oklahoma Public Service Co., impressed me as being a man who, standing stoutly for the interests of the people who invested their money in his company, yet realized that cooperating with the Government in an effort of this kind gained profit to them, and that it could be done in a way that was entirely in keeping with the present public-power policies announced by the Congress. Mr. KERR. Mr. President, will the Senator yield? Mr. HAYDEN. I yield. Mr. KERR. To clarify a point in my own mind I should like to ask the chair- man of the subcommittee a question about the committee report which dis- cusses briefly the SPA continuing fund. I refer to the language of the committee report found at page 130 of the report to accompany House bill 7786, as follows: The subcommittee on Interior Depart- ment appropriations conducted joint hear- ings with the subcommittee on agricultural appropriations, which handles the appropria- tion for the Rural Electrification Administra- tion, on the use of the continuing fund of the Southwestern Power Administration for the purpose of aiding in the construction and operation of facilities for producing and transmitting power for the use of pubilo bodies and cooperatives. This program in- volves the expenditure of Joans of consider- able amounts by the REA to a combination of local cooperatives and the lease of the facilities by the Southwestern Power Ad- ministration. The continuing fund is being used for this purpose to an extend not con. templated at the time SPA was created, The committee feels that the utmost care should be exercised by those administering this fund to avoid its use in any instance where it is not absolutely necessary to en- able public bodies and cooperatives to se- cure sufficient power to supply customers, It is not the intent of the committee that the continuing fund be used diréctly or in- directly in the construction or operation of power-producing facilities and transmission lines to compete with private enterprise in areas where adequate power is available or will be made available within a reasonable time at reasonable rates to the cooperatives and public bodies, It is my understanding that one of the purposes of the continuing fund was to CONGRESSIONAL RECORD—SENATE facilitate the interchange of power be- tween SPA and other suppliers in our area, and the marketing of power by SPA, If I remember rightly, the fund was first set up at the time SPA entered into the Texas contract with the power com- pany down there. The interchange of power is, as I understand, an important part of that arrangement and it is good deal both for SPA and the power com- pany. Now that the Southwestern Power Ad- ministration and the Oklahoma Utili- ties have signed an operating contract, to which the chairman of the subcom- mittee has so eloquently and forcefully referred, the continuing fund of the Southwestern Power Administration must be used to make that contract op- erative. It is my understanding that because of the assurance that this con- tract would be signed, the Appropria- tions Committee was able to reduce the request of SPA for funds, actual and contractual, by approximately $6,000,- 000. This saving results because the lines and facilities of the Oklahoma util- ity companies will be available for trans- mission of power to SPA customers, but the continuing fund is necessary for such an arrangement, Mr. President, I assume that the lan- guage relating to the SPA continuing fund in the report was not intended to interfere in any way with the type of arrangement contained in the contracts which have been entered into by SPA and the utilities on the one hand, and on the other hand by SPA and the rural electric cooperatives in Oklahoma and nearby States, and which were described before the committee during the hear- ings. I should like to ask the chairman of the subcommittee if I am correct in that assumption. Mr. HAYDEN. That is correct. The Oklahoma situation is this: All the representatives of the REA’s in Okla- homa who talked to me said that they were hopeful and anxious that an inte- grating contract might be made between the private power companies and the Southwestern Power Administration. They felt that was to their advantage in the area. On the other hand, I have heard no complaint from any private power company in Oklahoma as to the arrangement made by the Southwestern Power Administration with the REA de- velopment in that area. The Senator is perfectly correct. It is just as important, so far as a revolving fund is concerned, that money be made available to meet balances of payments from time to time, either with the private power companies or with the Rural Elec- trification Administration. That is the purpose, What we criticized in the report were developments above and beyond that, in other sections of the country. However, so far as Oklahoma is concerned, no one has complained about what has been done by the REA in that area, either publicly or privately. I understand that the arrangement is entirely satisfactory to all concerned. Mr. KERR. I thank the chairman of the subcommittee very much, JULY 18 Mr. THOMAS of Oklahoma. Mr. Pres- ident, will the Senator yteld? Mr. HAYDEN, I yield. Mr. THOMAS of Oklahoma. The Sen- ator from Arizona will remember, I am sure, that this controversy has been be- fore the Congress, and especially before the Senate subcommittee, for some 3 or 4 years. I think the Senator also will remember that recently the Southwestern Power Administration made a contract with the Texas Power & Light Co. So far as I am aware—and I think the Senator from Arizona knows more about this matter than I do—that contract is working sat- isfactorily. Is it not a fact that the contract which has recently been made is a replica of the Texas Power & Light Co. contract, but is adapted especially to conditions in Oklahoma? Mr. HAYDEN. The difference between the Texas Power & Light contract and the Oklahoma contract is that in the Texas agreement nothing was said or done and no arrangements were made in regard to supplying power to municipali- ties, whereas in the case of the Oklahoma contract a municipality or the Rural Electrification Administration or the Government itself—any or all of them-~ get the combined service of the com- pany’s power and of the Government's development of power, by means of the integration. Mr. THOMAS of Oklahoma. Am I correct in saying that the present Okla- homa contract is more favorable both to the Government and to consumers, the consumers being, first, the REA and pre- ferred customers under the Flood Con- trol Act of 1944? Mr. HAYDEN. That was the real diffl- culty, namely, to see that there was no distinction as between preferred custom- ers, as set forth under the water power act—that is to say, regardless of whether it was a municipality or a Rural Elec- trification cooperative or the Government itself or any public agency. It was nec- essary to see that all were treated alike. That was not the case under the Texas contract, because, as a matter of fact, there were no municipalities there that wanted any power, and that question did not arise as an issue. However, it was bound to arise in Oklahoma, It has been solved to the satisfaction both of the Southwestern Power Administration and to the private power companies, Mr, THOMAS of Oklahoma. Is it not a fact that under the Oklahoma contract the Government is able to sell to the ex- isting utilities all the power it can pro- duce, both firm power, secondary power, and even dump power? Mr, HAYDEN. The situation in that area, so far as hydroelectric power is concerned, is somewhat different from the situation elsewhere, where the Gov- ernment is producing large quantities of firm power. If my recollection is cor- rect, there are approximately eight rivers which are to have flood-control dams built on them. Those rivers vary in flow a@ great deal. For that reason, as the dry season comes on, the volume of water in the reservoir lowers, and the amount of firm power which can be developed less- ens. If ideally situated, it is possible
1950 to fit that fluctuating power into a stcam-plant system, whereas if the fluc- tuating hydro-electric power were not available, the steam plant system would have to have stand-by steam plants, and large amounts of money would have to be invested for that purpose. So this arrangement—utilizing the Government power, which is mainly uni- firm—integrates that power into the system of the private power companies. Then when the Government takes out power to supply to its preferred cus- tomers, it is firm power, available 24 hours a day and every day the year ‘round. Mr. THOMAS of Oklahoma. As a matter of fact, the State of Oklahoma has a great many rivers which are fed by flash floods coming from northwest Arkansas, southwest Missouri, southern Kansas, southeast Colorado, northeast New Mexico, and western Texas. Those floods flow into the rivers which carry the water across my State, and eventu- ally the water goes either into the Ar- kansas River, which flows through Ar- kansas, or into the Red River, which flows through Louisiana. In our State there are no rivers which are constant in flow. So the only water we have, as a rule, is the water coming from the so-called flash floods. Therefore, in order to provide power, we must catch the water in reservoirs, and must hold it there. By doing so, we serve flood control, and later on we run the water through turbines and create electricity. My point is that under the Oklahoma contract the Government is able to sell all the power ff can create, both firm power, secondary power, and dump pow- er, because the utilities can take the power when it is available, and at such times they can close down their steam plants to some extent and can depend on the use of the floodwaters. Then when the floods have abated and are over, the private power companies can fire up their steam plants and can begin to operate again on the basis of steam power. 80 this system enables us to get the greatest possible amount of revenue; and at the same time, according to the South- western Power Administration’s an- nouncement, the rate will be 5.6 mills per kilowatt-hour, which is the second cheapest rate in the entire country, so Iam advised. Mr. HAYDEN. I understand that the rate to public bodies in Oklahoma will be among the very lowest in the United States, and that it is advantageous to pursue this course, as demonstrated by the testimony of Mr. Wright, who jJusti- fied our action in recommending that, under this bill, $6,000,000 be taken from ‘the cash and contract authority. His testimony further fs that it means a sav- ing of at least $850,000 a year during the years to come; and as he so aptly pointed out in his remarks, that saving inures to the benefit of the consumers of pow~ er in the Oklahoma area. Mr, THOMAS of Oklahoma. ft is a fact, I believe—and I think the Senator from Arizona will confirm what I say— that by virtue of this contract, the Gov- ernment will be able to avoid the appro- CONGRESSIONAL RECORD—SENATE priation of vast sums of money for the building of transmission Ines; but, in- stead, the Government will be able to use the existing transmission lines for transmitting the power, and thus will make the saving. There will be a saving to the Government, and also, as I think the Senator will agree, all money in- vested in transmission lines eventually must be repaid by the consumers of electricity. Mr. HAYDEN. Wherever a transmis- sion line is built, either by a private utility or by the Government, the rate for electricity must be fixed at such a Point as to make it possible in the course of time, to amortize the payments for the transmission line. Mr. THOMAS of Oklahoma. I think time will demonstrate the wisdom of the Oklahoma contract, in that both par- ties will be benefited—a somewhat un- usual situation under a contract. The Government will be benefited, and also the consumers will be benefited, because both will have the advantage of the sec- ond cheapest power rate in the entire country. Mr, HAYDEN. The Government had unfirm, fluctuating power, which by it- self could not bring a very good price. The private power companies had steam plants which they would have to main- tain in excess capacity for stand-by serv- ice, but which they are not now required to build or to maintain, because they can obtain the Government power. So one hand washed the other. Mr. THOMAS of Oklahoma. For some time the Members of the Senate who handle the Interior Department ap- propriation bill in the Appropriations Committee have been very anxious to hold hearings to develop a Federal pub- lic power policy. Does not the Senator from Arizona believe that the Oklahoma contract, together with the Texas Power and Light contract, go a long way toward developing a national policy? Mr. HAYDEN. I think they will be highly valuable in that respect. I may add that the same policy which we adopted, as applied to the United States Reclamation Service, has borne good fruit. First we provided in the bill money with which to construct trans- mission lines from the Hungry Horse Dam in Montana. That area is divided between the Reclamation Service, on the eastern slope, and the Bonneville Power Administration, on the western slope, The power company violently opposed the construction of any transmission line into Anaconda, but we provided for it. As a result, they got together with the Bonneville Power Administration, and made a contract which is entirely satis- factory both to the Government and to the company. In Colorado there has been consider- able difficulty. My information from the Reclamation Service is that there has been agreement in principle upon a wheeling arrangement which is entirely satisfactory. ‘There remains in Mon- tana one difficulty, which I shall discuss & little later, with respect to a transmis- sion Itne. Mr. THOMAS of Oklahoma. Mr. Pres. ident, if the Senator from Arizona will 18499 permit a further observation, tet me say that I wish to pay my reapects to the ad- ministrator of the Southwestern Power Administration, who has been working on this matter for all these years, I think it is to him that we must give credit for doing the detailed headwork in the prep- aration of both the Texas Power and Light Co. contract and the so-called Oklahoma contract. I believe he has rendered a signal service to the public, and especially to the electric industry, by the development of those two contracts, I also wish to pay my compliments and respects to the chairman of the Interior Subcommittee of the Appropriations Committee, the Senator from Arizona (Mr. Haypren], because he has been in- tently interested all these years in try- ing to work out something which will relieve his committee and the Congress of the necessity of guessing as to appro- priations for these purposes. With these contracts in existence, so far as these two States and the South- west are concerned, we have a pattern, and if the private companies are un- willing or for any reason refuse to build the lines which are necessary, I think it is understood that the Congress will be called upon to build them. As one mem- ber of the committee, so long as I am here, I shall be very glad to go along and help build such lines. So I pay that compliment to the chairman of the sub- committee, because I give him credit for working out this matter to a very high degree. Mr. HAYDEN. I thank the Senator. Mr. THOMAS of Oklahoma. Mr. President, at this point I should Hke to offer for the Recorp a brief statement. It is a part of a speech I made at the dedication of the Dennison Dam, which took place on July 1, 1944. That was before section 5 of the Flood Control Act was enacted. I ask permission to incor- porate that very brief statement at this point in the RECORD, as a part of my remarks, There being no objection, the extract was ordered to be printed in the Recorp, as follows: How will this power be distributed? Public power, as a rule, is produced as a by- product of flood-control, reclamation, and navigation developments, The Government should not, in my judg- ment, enter the field of power development in such a manner as to destroy the value of existing power facilities which have served and are serving the wants and needs of the people. It seems to me that a cooperative plan of power development and distribution may be worked out whereby the people in the cities and on the farms may receive the ben- efits of such power at reasonable rates. Such a plan should é¢mbrace a program wherein the Government may create the electrical energy and the existing distribut- ing systema may take the current at the point of manufacture and thereby both the Government and the existing systems may Profit by such cooperative plan of operation. Former Senatar James P. Pope, now a Di- rector of the Tennessee Valley Authority, has Just made the following atatement: “There fg no doubt but that this ooopera- tive effort, which makes for efficiency, econ- omy, and better service, is here to stay and will play an increasingly important Ret in the future development of the public and private power industry.”
10500 Uniess this policy is adopted the Govern- Ment will be forced to bulid stand-by steam plants and in addition will have to buitid transmission and distributing lines in order to deliver the electricity to the consumers. The Government is interested in making & success of its flood control, reclamation, and navigation power developments. The public is interested in securing elec- tricity at a reasonable price. ‘These two interests can be harmonized and adjusted to the benefit of both the Govern- CONGRESSIONAL RECORD—SENATE ter from Oklahoma [Mr. Kerr) asked the Senator from Arizona with refer- ence to the language on page 130 of the committee report dealing with the Southwestern Power Administration. I was very much pleased, I may say, with the answer of the Senator from Arizona. I was not at all surprised, but I was pleased that he made the answer he did, because, as he indicated in his answer to single out REA co-ops and deny them JULY 18 Budget estimates, House action, and Senate committee recommendations CABH APPROPRIATIONS Amount of bill as passed by House .....-.---..------n-- 9622, 184, 130 Amount of decrease by Senate (net) after including $5,496,- 000 of supplemental esti- mates sent to Senate after bill passed House__._--..-.. 5, 128, 100 Total of bill as reported minis ic Une of the problems that must be the edvantages of arrangements involv- to Benate....-------- 617, 006, 080 acived and when it js solved it must take into ing the use of the SPA continuing fund, Amount of 1951 budget esti- consideration the injury Gone by removing while permitting its use to make pay-~ mates: axation and then it must give ments to private power companies un- credit to the values which may be created der the Texas and Oklahoma contracts, Surpleraental estimates 699, 251, 808 as the direct result of the making available would be rank discrimination against (8. Docs, 154, 187, and of an abundance of cheap power, the REA co-ops. 186) 2.2 wenn ene nee - 5, 720, 000 Mr. CHAVEZ. Mr. President, will the Mr. HAYDEN. Mr. Wright made it Senator yield? perfectly clear in his testimony that eet eT tate” 074.071, 508 The PRESIDING OFFICER (Mr. Lex- this revolving fund was just as neces- Amount’ of 1950 appropria- — maw in the chair). Does the Senator sary in order to do business with the tions _.....-.-------.------ 690, 203, 947 from Arizona yield to the Senator from private power companies as it was to The bill as reported to the New Mexico? do business with the REA’s or for the Senate: Mr. HAYDEN. I yield. REA’s to do business with the private Under the regular and sup- Mr, CHAVEZ. As I understand the companies. premental estimates for 7,965, 47 statement of the Senator from Arizona, § Mr. HILL. Certainly the committee mowu apoio in describing the Hungry Horse project, had no intention whatever of saying 1980 P| P cece eeneeenee 26, 802, 088 the point which the Senator was trying to make was that if this appropriation had not been made, the chances of get- ting private power companies and others anything or doing anything that would discriminate against the REA coopera- tives. Mr. HAYDEN. No; they were to be CONTRACT AUTHORIZATIONS Amount of contract authoriza- tions included in bill as together on a power contract would net treated alike. aneuee a renUaton in eons #38, 250, 000 tne Seuthwestorn Power Administra. ‘HILL. Exactly alike, ane net enone Py Sony 420, 000 bad ate (net) 1.2.2. ewe . tion or the Government had the author- SUMMARY TABLES ) ity to do it if the others did not. Mr. HAYDEN. Mr. President, I de- Total of contract au- Mr. HAYDEN. That was the policy sire now to conclude my remarks by thorizations as re- we adopted last year, and I am going to saying that I have covered the larger ported to Senate-_-. 37, 830, 000 say it has proved to be practical and tems included in the bill, and without Amount bn 1001 budget, esti. sound. In each case, when the private taking the time of the Senate to discuss ailene oe ract authori- 44, 750,000 power company learned that if it did not the committee's recommendations on 4, .ount of contract authoriza- o_— make a contract satisfactory tothe Gov- PPT opriations for all of the bureaus and tions, 1960__...-..---.----- 65, 251, 700 ernment, the Government would build services in the Interior Department, I The bill as reported to the transmission lines to serve its own cus- 93k unanimous consent to insert in the Senate: tomers, they then arrived at a settle. Recorp at this point as a-part of my re- Under the 1951 budget ment which was mutually satisfactory, Marks certain summary data and tables ortharlestions og 90, 000 Mr. HILL. Mr. President, will the included in the committee’s report, which Under the 1950 contract u_— Senator yield? set forth the over-all action of the com- authorizations ......-.~ 277, 421, 700 The PRESIDING OFFICER. Does the Senator from Arizona yield to the Benator from Alabama? Mr. HAYDEN. I yield. Mr. HILL. I was very much interest- ed in a question which the junior Sena- mittee on chapter VII and its recom- mendations with respect to each bureau and service. There being no objection, the following summary, data, and tables were ordered to be printed in the Recorp. Cash appropriations COMPARATIVE SUMMARY TABLE The table following shows the over-all action on chapter VIT of the bill setting forth the 1951 budget estimates, the amounta allowed by the House, and the amounts rec- ommended by the Senate committee: Increase (+), de- Increase (+), de Tnerease ch de crease (—), Ben- Sen- Increase (-+), de- crease (~~), Sen- croase(—-), House ate committeco 1960 appro- | 1951 budget manded in ‘mmended with compared with 1980 Lote Bil “compared a comity n ommen estima’ w r0- Office or bureau priation estimate | House bill, | by Sonate priations app With estimates with Houso bill 1951 committee Amount Pere Amount Amount Fore Office of the Secrotary..... 2.2.2... 178,075 | $14, 251, 800°} $14,076,000 | $11, 974, 000 $176, 800 | 0.12 , 798, 826 93.81. -~ Commission of Fine Arts............ * 12,000 | | 12, 530 ae 12, 630 § 12) 53 wo veoreenete 0.18 $85 OT) (aad (oct oe [1 88 | 82, 101, 000 “en Bonneville Power Aduninistration. -»-| 80, 284, 00 | 47, 250,000 | 46, 500,000 | 44, 000, 000 —780, 000 | 1.88 | -+-18, 715, 500 |20,02 + —2, 500, 5.37 Bureaa of Land Management . 6, 58), 200 0, 650, 7, 386, 800 7, 927,810 | 2, 203, 23.76 | -+-1,347, 610 . +571, 010 | 7.76 Bureau of Indian Affairs. . - on 60. 783, 80, 746,055 | —8, 208, 375 [10.70 | 4-21, 140, 808 10 | +3, 053, 5.14 Bureau of Reclamation... 389, 334, 104,000 | —34, 210, 500 | 9.52 | —32, 680, 510 80 | —1,004, «30 Geological Survey...... 400 19, 882,000 | —1, 146, 5.65 | -+3,337, 40) £283, 1.33 Bureau of Mines.........- 24, 181, 100 073, 100 | 3.86 +84, 48 —104, 500 | 148 National Pork Service , 118, 2,661,300 | 6.75 | +6, 368, a4 — 626, 1,70 Fish and Wildlife Borvios., “> 14, 547, 950 +28, .17 ty 611, 450 + . 87 +172, 450 | 1.19 Government in the Territor| , 588, 1, 448, 100 | 2, 46 7, 852, 219 5, 189, 315 82] 3,741,215 |} 6.52 Subtotal, Department of the LOTIOR ose swe nnnwcenewen 616, 582, 080 | —5: fi . -, - * Virgin Islands Gorporation...-...-.. oie 000 fas ee | 8 to aoa, 000 TAT 06, 475 | BP | 5128 100 | Grand total. ch. va. it, Depart- mont of the Interlor........ | 500, 208, 947 | 674, 971, 605 | 622, 184, 130 | 617, 006, 030 | —52, 837, 375 | 7.82 | +26, 802, 083 —57, 905,475 | &68 | —8, 128, 100 82 OONTEACT AUTHORIZATIONS
1950 the Senator yield for a suggestion at this point? Mr, HAYDEN. I yield. Mr. MAGNUSON, With respect to the Columbia Basin appropriation, the House committee allowed the full amount requested by the Budget Bureau. The Senate committee cut $3,700,000, as I recall, or $4,000,000 from the amount. I was wondering whether, for the pur- pose of the record, the Senator could give us a brief explanation of the re- duction. Mr. HAYDEN. The reason the Sen. ate committees reduced that amount under the Budget Bureau's estimate, and under the amount appropriated by the House, was that we were trying to recover as much money as we could in different places in the bill, to equal the cut that would be made if the Taber- Thomas amendment were adopted. In doing that, we found that, so far as the Columbia Basin was concerned, as in other instances, there was a carry-over of an unexpended balance, which, in the estimate of the engineers of whom we inquired, made it safe to make a re- duction at this time. In other words, we wanted to be sure there was sufficient money in the bill to meet all contractual Payments for construction projects which were going on during the year, but, where there was more than that, we preferred to let it go over to another year. . Mr. MAGNUSON. In regard to this particular instance-—— Mr. HAYDEN. We are quite confi- dent that this would in no manner in- terfere with the orderly progress of con- struction on the project. Mr. MAGNUSON. Adequate plan- ning for next year will be taken care of, because of the overlays and the amount that was given. Is that correct? Mr. HAYDEN. The Senator is cor- rect, Mr. SCHOEPPEL. Mr. President, I should like to ask the distinguished Sen- ator from Arizona a question: In his judgment, and in the judgment of the committee, are there sufficient funds to make it unnecessary to curtail any of the developments of the REA programs which have been brought before the committee? Mr. HAYDEN. The REA money, I may say to the Senator, is carried in the agri- cultural chapter of this bill, and I am sure the amount allowed is ample for that purpose. The only purpose of this section of the bill, chapter VII, with re- spect to REA, ts to provide for cases in which some service is rendered by the Southwestern Power Administration in the Senator’s area. Mr. SCHOEPPEL. That is what I am. getting at. Mr, HAYDEN. The way I understand the situation, so far as southeastern Kansas is concerned, and so far as south- western Missouri and Arkansas are con- cerned, is that the Oklahoma contracts as they have been developed, are to serve as @ model or basis for similar contracts elsewhere within the srea, and, where stiultable integrating or wheeling arrange- ments can be made with private com- CONGRESSIONAL RECORD—SENATE panies in the Kansas or Missouri area, or elsewhere, it then will not ‘be neces- sary for the Southwestern Power Admin- istration to construct transmission lines to serve preferred customers; just as it happened in Oklahoma. If, however, suitable arrangements cannot be made, there is then authority to see that the preferred customers of the Government are served, customers such as the mu- nicipalities and REA. Pen SCHOEPPEL. I thank the Sen- ator. The PRESIDING OFFICER. The question is on agreeing to the first com- mittee amendment in chapter VIL The clerk will state the amendment. The first amendment, under the head- ing “Chapter VII—Department of the Interior—Title I—Office of the Secre- tary—Salaries and expenses,” was on page 230, line 12, after the word ‘“‘service”, to strike out “$2,315,000” and insert “$2,100,000.” The amendment was agreed to. The next amendment was, on page 230, after line 12, to insert: STANDARDIZATION OF GEOGRAPHIC NAMES For expenses necessary for carrying out the provistons of the act of July 25, 1947 (43 U. 8. C. 864), including personal services in the District of Columbia and printing and binding, $14,000. The amendment was agreed to. The next amendment was, under the subhead “Enforcement of the Connally Hot Oil Act,” on page 231, line 3, after the word “binding’’, to strike out “$200,- 000” and insert “$180,000.” The amendment was agreed to. The next amendment was, under the subhead “Operation and maintenance, southeastern power marketing area,” on page 232, line 7, after the word “bind- ing”, to strike out “$150,000” and insert “100,000.” The amendment was agreed to, The next amendment was, under the subhead “Construction, Southwestern Power Administration,” on page 232, line 14, after the word “expended”, to strike out “$10,350,000” and insert “$8,620,- 000”, and in line 19, after the word “ex- ceed”, to strike out “$6,000,000” and in- sert $1,780,000.” The amendment was agreed to. The next amendment was, under the subhead “Operation and maintenance, Southwestern Power Administration,” on page 233, line 7, after the word “area”, to strike out “$760,000” and insert “$660,000.” Mr, KERR. Mr, President, reserving the right to object, for and on behalf of the senior Senator from Oklahoma, we desire to ask the chairman of the com- mittee to eliminate that amendment and to let the figure stand as passed by the House, at $760,000. . Mr. HAYDEN. I may say to the Sena- tor that the sole and only reason the committee had for making that reduc- tion was the assumption that, having re- duced the amount of appropriation and authorization by some 66,000,000—the appropriation part of it by a little more than $1,000,000—we thought that per- haps there would not be as much opera- tion and maintenance to be undertaken, end so we made this cut with the idea of 10561. taking it to conference and then deter- mining what it actually should be. In other words, we had no testimony of any kind from anyone upon which to base the cut or to justify the cut. We simply acted on general principles, Mr, KERR. Mr. President, I should like to say to the Senator that his as- sumption that the costs of operation with reference to construction have decreased is accurate and well founded. However, as he is probably as well aware as is any other Member of this body, upon the completion of the contract between the Southwestern Power Administration, the utility companies, and the REA, we have now advanced many years in the scope of area served and the extent of opera- tion carried on, and where we will have some saving with reference to the opera- tion and maintenance of construction projects which will not be built there will be a corresponding increase in the op- eration and maintenance with reference to the over-all picture of the operation. Mr. WHERRY. Mr. President, will the Senator yield? Mr. HAYDEN. I yield. Mr. WHERRY. Mr. President, the juntor Senator from Nebraska is a mem- ber of the subcommittee, and my under-~ standing is that the appropriation does carry s percentage increase over the figure for last year. The figure last year was $525,000. I may be in error, but my understanding is that we increased the figure to $660,000. Mr. HAYDEN. The amount carried last year was $525,000. The budget esti- mate this year was $785,000, of which the House allowed $760,000, and we took off another $100,000. We took it off by guess, without any particular reason. Mr. WHERRY. Is it not a fact that the budget estimate was increased to take care of the very situation which the distinguished Senator from Oklahoma has mentioned, and that when the facili- ties were reduced about $1,000,000 out of $6,000,000 the administration cost was reduced in that amount? Getting back to my original question, is it not a fact that the increase this year is $660,000 to continue the improve- ments which the distinguished Senator is talking about? Mr. HAYDEN. The justification reads as follows: It is anticipated that approximately 840 miles of additional transmission lines and related factlities will be completed and ready for operation and maintenance tn the fiscal year 1951. These additional facilities, to-° gether with the 500 miles of transmission lines already being operated and maintained, will entail an estimated cost of $575,000 in the fiscal year 1961 as compared with $375,- 000 in the fiscal year 1950. The costs for fiscal year 1950 did not represent a full year’s operation and maintenance cost, aa the pro~ gram was initiated in that year, and the necessary staf! to operate and maintain the 500 miles of transmission lines was not yequired until the latter part of that fiscal year. Mr, WHERRY. This justification was made prior to the time the contract was negotiated which permitted a cut in the appropriations for construction. . Mr. HAYDEN. No. There is no con- nection, if the Senator will hear with me,
10502 between the reduction in the amount of money and the appropriation of this amount of money for operation and maintenance except that in the future, according to the testimony, there will be more lines brought into operation this year than were brought in last year. Mr. WHERRY. Ferhaps I did not state it correctly, but there is the con- nection that, if lines are not brought in, the increase allowed will take care of the costs this year. Mr. HAYDEN. If we appropriate money this year to construct a line, un- til the line is built we do not operate and maintain it, Mr. WHERRY. I understand that. The PRESIDING OFFICER. The question is on agreeing to the committee amendment. The amendment was agreed to. The PRESIDING OFFICER, The Clerk will state the next: amendment. The next amendment was; under the subhead "Bonneville Power Administra~ tion—Construction,” on page 234, line 9, after the word “expended”, to strike out “$41,500,000” and insert “$29,500,000”, and in line 14, after the word “exceed”, to strike out $21,750,000" and insert “$26,000,000.” The amendment was agreed to. The next amendment was, under the subhead “Operation and maintenance,” on page 234, line 22, after the word “energy”, to strike out “$5,000,000” and insert “$4,500,000.” Mr. MAGNUSON. Mr. President, I should like to discuss this amendment very briefly. I am not objecting to the reduction in construction, but there is a very serious matter involved in the op- erption-and-maintenance figure, and I wish to point it out in the hope that when the bill goes to conference the conferees will be able to provide a better figure than that which is suggested by the com- mittee. The Bureau of the Budget recom- mended $5,250,000 for operation and maintenance of the Bonneville power transmission system in fiscal 1951. The House approved $5,000,000, a reduction of $250,000. The Senate committee cut this an additional $500,000, leaving the Ad- ministrator only $4,500,000 to carry out all of the vital functions required to op- erate and maintain a transmission sys- tem relied upon by almost every com- munity in the entire Pacific Northwest, I urge the Senate to reject the com- mittee amendment. By so doing we will dnsure that the $5,000,000 allowed by the House is available to BPA in the coming year. The potential adverse effect of the $500,000 Senate committee cut is out of all proportion to the dollars involved. Let me give the Senate just one example of how serious could be our failure to provide adequate operation and mainte- nance funds. Everyone here by this time has become aware of the importance of aluminum Production both to a peacetime and to a preparedness economy. The most essential ingredient In the manufacture of aluminum js large quan- tities of low-cost electric power available 24 hours a day without interruption, 1 repeat, without interruption. CONGRESSIONAL RECORD—SENATE Aluminum metal is made in factories called potlines. The term ts descriptive. Each potline is a building with 128 large cauldrons placed in a row. Heavy electric fixtures are affixed to each pot so thet strong, continuous elec~ tric current can be poured through it. The pots are filled with a sugarlike crystal known as aluminum oxide, The current is turned on and other mineral is added. It is a continuous process, it is continuous. As the metal is drained off the pots new raw material is added. If the current should fail:to supply one of these potiines for as much as three consecutive hours, it would take 2 weeks to get back into production again. The metal and other mineral would freeze in I repeat, the pots. The electrodes might be dam- The fresem minerals would be- aged, woah, The 128 pots painstakingly chipped: would be siewly: brought back inte: pre-. duction, one at a time. The average aluminum potline pro- duces: about 100,000 pounds per day. Thus a 2-weeks’ delay, due to a single 3-hour electric-power failure, would mean a production loss of 1,400,000 pounds of aluminum, The Bonneville Power Administration serves electricity to 19 atuminum potlines in the Pacific Northwest. This represents half the aluminum production of the entire country, The power system of the Bonneville Administration has been consistently overloaded since the last war. There is so little reserve capacity left in it, due to gtowth of power use, that any little dis- turbance can cause a power failure throughout the entire region. The Bonneville transmission system is like a rubber band that has been stretched around a parcel too big for it. There is no spare stretch left. If any little thing goes wrong, the whole as- sembly flies apart. Constant vigilance is required by the Bonneville substation operators to detect and forecast the possibility of trouble, Constant alertness is required to cut repair time to a minimum after trouble develops. A little money goes a long way here, A few hundred thousand dollars can mean maintenance crews stationed every 50 or 100 miles instead of every 200 miles, And a single hour’s travel time can mean the difference between 2-hour power failure for 19 aluminum potlines and a 34-hour power failure. A single hour's travel could mean a difference of 26,600,000 pounds of alumi- num production for the Nation’s needs. The proposed reduction in the opera- tion and maintenance funds of the Bonneville Administration strikes di- rectly at the reliability of service to plants which supply half the Nation’s aluminum. No utility can guarantee against occa- sional power failure. But inadequate funds for the operation and maintenance of the system can guarahtee that there will be a considerable number of power failures, . Lack of a relatively few thousand dol- Jars can mean ‘too few men, too many JULY 18 miles apart to adequately service a 3,000- mile transmission system. Too few men will inevitably mean over- time. Overtime will mean fatigue. Fa- tigue will mean human error and delay. We must not speculate on our alumi- num stpply now. These Northwest aluminum plants must be kept in con- tinuous production at all costs. This means continuous power supply. It is hoped that in view of the sertous situation confronting us, which may grow even more serious due to events in the past few weeks, the conference commit- tee will give very serious consideration to this matter, because it involves one of the most vital matters which exists today in our country, namely, the production of aluminum. The conferees may wish to reevaluate the operation-and-mainte- nance figure. I urge full restoration of this cut in operation-and-maintenance funds ‘for ' the Bonnevilte ‘Power Administration. ‘This agency is:paying a profit to the Federal Treasury each year. ’ From the standpoint of economics, from the standpoint of ordinary good business, and, above all, from the stand- point of national security, these funds should be restored. Mr. HAYDEN. I am sure that Dr. Raver will make the necessary recom- mendations to the committee. Mr. MAGNUSON. Yes. Mr. CORDON. Mr. President, will the Senator yield? . Mr. HAYDEN. I yield. Mr. CORDON. In view of the com- ments of the Senator from Washington with respect to potiines, it should be noted that the amount originally re- quested for 1951 for maintenance and op- eration of transmission lines was $3,400,- 000. The amount for the overrall ad- ministration is $4,500,000. I come from the Pacific Northwest, and I am inter- ested in the proper operation of Bonne- ville. However, like every other activity of Government, it mast have money ap- propriated for its operation, and in view of present conditions I hope the com- mittee’s action will be sustained. Mr. MAGNUSON. Mr. President, did I understand the Senator to say that the amount requested was $3,500,000? Mr. CORDON. For transmission maintenance and operation it was §3,- 400,000. Mr. MAGNUSON. I understood it was $5,250,000, and that the Budget Bureau approved that figure. Mr. CORDON. The Senator is in error in his understanding of the make-up of the appropriation item. Three million, four hundred thousand dollars was esti- mated for the operation and mainte- nance of the transmission system, $600,- 000 for power marketing, and $1,165,000 for general administrative activities, The point I make is that so far as the transmission system is concerned it is more than $1,000,000 within the figure the committee reached. I join with the Senator from Washington in his sugges- tion that a careful check be made when the matter reaches conference. I am satisfied that the system can be operated within the figure which the committee has recommended.
1950 Mr. MURRAY. Mr. President, repre- senting in part the State of Montana I am naturally interested in the Bonneville power program. I wish to record myself as being in accord with the distinguished Senator from Washington in this matter. There seems little point in appropriat- ing hundreds of millions of dollars over @ period of years for the construction of vital electric power facilities and then permitting these facilities slowly to de- teriorate for lack of adequate mainte- nance, Yet the proposed reduction in the op- eration and maintenance funds of the Bonneville Power Administration will bring about this circumstance. Mr. McKELLAR. Mr. President, I can assure the Senator from Montana that the Government has no intention of allowing that to happen. It does not in- tend that the plants should deteriorate. It has conducted a good job in the past, and it will conduct a good job in the future. The subcommittee in this case is one of the best subcommittees in the Senate. They went into the matter very thoroughly. ‘They heard much testi- mony. They have pursued the matter with the greatest of care and delibera- tion. They will see to it that what the Senator fears will not happen. Mr. MURRAY. I am sure of the in- tention of the committee. During the past several years I have noticed a recurring pattern in the de- bates and action on this item. The Bonneville and Department of Interior officials, in their contacts with Members of the Senate each year, have been uniformly reasonable and com- plaisant on most appropriation adjust- ments proposed by this body. But for the past 3 or 4 years, they have told us a consistent story on operations and maintenance money. In brief, they have pointed out that, while we have been adding to the size and value of their plant each year, we have not been making commensurate in- creases in allowances for maintenance and operation of that plant. Furthermore, I am told, the Bonneville operations records reflect this situation. Each year, there is a little more news in the Pacific Northwest newspapers about severe power failures than in the previ- ous year, The amount of funds involved in this item is not large. The committee has cut the House figure by $500,000. With- out this $500,000 much maintenance work on the Bonneville-Grand Coulee system will be left undone, Now perhaps this would not matter if such work were delayed for a year; but I am reliably informed that much of this work has already been delayed for sev- eral years and that, due to rising costs and inadequate funds in past years, the backlog of incomplete maintenance work is slowly piling up and bringing nearer and nearer the evil day when failures in equipment will bring tremendous and serious losses, his House should reflect carefully on the consequences of power failure in the Pacific Northwest. Half the Na- tion’s aluminum production is in that region and is served directly by the lines CONGRESSIONAL RECORD—SENATE for which this budget item Is designed to keep operating. Three-fourths of the weight of every military plane is aluminum and our na- tional aluminum capacity right now is insufficient for civilian needs—tet alone military requirements. This half million dollars will buy a great deal. Failure to spend it will inevitably cost us a great deal. I urge that the House figure be re- stored. Mr. CHAVEZ. Mr. President, will the Senator yield? Mr, MURRAY. I yield. Mr, CHAVEZ. I merely wish to say that not only is the subcommittee one of the best subcommittees of the Senate, but it is a sympathetic subcommittee. This subcommittee ts philosophically fa- vorable to the project. Mr. MAGNUSON. Mr. President, will the Senator yield. Mr, MURRAY. Yes. Mr. MAGNUSON. Both the Senator from Montana and I appreciate the fine work which the subcommittee has done. Our only suggestion was that the im- portance of keeping the aluminum pot- lines in operation may give rise to the advisability of perhaps reviewing the matter in conference. Mr. MURRAY. I sincerely fee] that the members of the subcommittee have done a splendid job. I know it is not their intention to permit any deteriora- tion of these great works on the Colum- bia River. At the same time through accident or inadvertence appropriations may not be forthcoming to carry out the programs as they should be carried out. I do not think it is necessary to dwell on the matter any further. I merely wish to record myself as agreeing with the Senator from Washington. The PRESIDING OFFICER. The question is on agreeing to the amend- ment on page 234, line 22. The amendment was agreed to. The PRESIDING OFFICER. The clerk will state the next amendment. The next amendment was, under the subhead “Bureau of Land Management— Management of lands and resources,” on page 235, line 22, after the word “Man- agement”, to strike out “$6,756,800” and insert “$7,127,810.” Mr. DOUGLAS. Mr. President, last year there was appropriated $6,215,000. The House bill increased this sum by nearly a half million dollars more, to a total of $6,757,000. The Senate com- mittee now proposes to raise this sum by $371,000 more, to a total of $7,128,000. I am rounding off the figures to the last thousand. This would represent an in- crease over 1950 of $913,000. Mr. President, the House figures are already $541,000 above the 1950 expendi- ture. In view of the stringent economic conditions of our country, and in view of the fact that the increases provided by the committee are for somewhat doubtful purposes, as I shall show in a minute, I hope very much the committee amendment will be rejected, or, better still, that the chairman of the commit- tee, out of the kindness of his heart, will withdraw the committee amendment, 10503 Mr. President, I should like to point out that in this increase of $371,000 above the House figure, $100,000 is for range reseeding. It seems to me the Grazing Administration would do much better to prevent overgrazing from oc- curring than to permit it to occur im the lands it leases, and then spend tax money to reseed the land which has been overgrazed. There is a second item of $75,000 for ‘weed control in the California and Ore- gon forests. I do not know what par- ticular weeds are flourishing there, but apparently they are seeking an appro- priation to put down Scotch broom or similar weeds. At any rate if this pro- gram is necessary, expenditures for it should be taken from the increase al- ready granted by the House. There is an increase in the item for general administration, although the House had already allowed $903,000, making the total virtually $1,000,000 for administration, which seems to me to be a very high figure. Finally the committee provided an in- crease for what are called “cadastral surveys” of $100,000. I was somewhat puzzled by this elaborate phrase “cadas- tral survey,” and I looked it up in the dictionary and found that it means “an official register of the quantity, value, and ownership of real estate, used in apportioning taxes.” In view of the fact that the House had already allowed $743,000, and this is another $100,000, this seems to me a rather expensive “cadaster.” I take it that another term for the “cadastral survey” is the “Domesday Book” which William the Conqueror im- posed on England. Let us beware of making this appropriation bill another Domesday Book for the American tax- payer and for the resources and man- power of the country at a time when we need them for defense. Mr. HAYDEN. Mr. President, the Bu- reau of Land Management produces rev- enue for the Government. The amount of increase allowed by the subcommit- tee was not so much as I personally would have liked to see allowed. When we have an agency which handles income-pro- ducing property of the United States, which, if it has proper supervision, can bring greater revenue into the Treasury than the cost of the service, it is highly desirable to make adequate appropria- tions for it, Just as it is to employ addi- tional internal-revenue collectors when they can bring in more money than their salaries cost. Mr. President, that is the situation with respect to this Bureau. I believe that if the Senator were as familiar with the facts as the subcommittee is, he would heartily agree with us that when it comes to supervising properly leases for off and gas on the public domain, and for the handling of the grazing land to get a better income, and so on, that, from the standpoint of business enter- prise the Bureau of Land Management has not been adequately supplied in the t. past. Por that reason, the Bureau of the Budget, realizing that this is a revenue- producing agency, increased the amount
10504 recommended to Congress over the ap- propriation of last year to $8,650,000. ‘The committee did not allow that much, although I would have liked to see it al- lowed. I believe it would be a good in- vestment for the Government of the United States to appropriate the full budget estimate. We would make money by doing that. But we compromised in the committee, and the figure in the bill is the amount the committee stands on. I hope the recommendation made by the Senator from Wlinols will be rejected. Mr. CORDON. Mr. President, I have worked on this subcommittee for some 3 years, and I believe that the recom- mendation of the subcommittee in the matter of the appropriation for the Bu- reau of Land Management is founded in sound logic, based upon testimony which wholly warrants these ,several increases. In the instance of the Grazing Ad- ministration, the Government is faced with a condition and not a theory in the vast Columbia Plateau grazing areas. These areas were overgrazed many, many years ago, some of them to the point where there was hardly any grass growing year by year. The reseeding will give an opportunity to bring into forage production vast areas where there is no value at the pres- ent time. In addition to that, the neces- sities in the grazing areas are well known to the people of the West, not, of course, so well known to those who have not lived there. We in the West realize that there are uncounted thousands of acres of pri- vately owned land which today have value because they can be used in con- nection with supplemental land that is now administered under the Taylor Graz- ing Act. Without that supplemental range those privately owned Jands would be substantially worthless, in many in- stances. With respect to the item of $75,000 for forest management, the Senator from Oregon has a particular and personal interest in that item in the bill, due to the fact that it represents a necessity in western Oregon, where the revested railroad grant lands are situated. The Jands represent every other section, or every odd section, for some 200 miles north and south in western Oregon, and in an area that will run from 20 to 40 miles east and west. The intermingled lands are privately owned. A noxious weed poisonous to livestock is now growing in that area. The State and local governments, coun- ties and the like, have set up weed-con- trol districts. They are fighting to save the range in that area from this noxious and poisonous weed. What they do on their lands will be of no value if they do not have cooperative effort from the United States. Hence the appro- priation of $75,000. _ In the cadastral survey item, the com- mittee was particularly interested in the necessity for early survey of the public domain in certain parts of Alaska. If I remember correctly, of the vast area of Alaska something like 3 percent has been surveyed. The greater portion of even those parts of Alaska which now are being settled is unsurveyed. There is CONGRESSIONAL RECORD—SENATE Nttle hope that there can be develop- ment in Alaska, as a Territory or as a State, until there can be a survey of the lands so that they may be alienated if, as, and when that is proper to the devel- opment of the Territory. As to the general administration item, the subcommittee over a period of years past, in cooperation, I may say, with the Senate Committee on Interior and In- sular Affairs, has urged the Interior De- partment to get its house in order with reference to its records in the public lands field. The reorganization of the Interior Department in the past 3 or 4 years has resulted in a great lessening in the num- ber of applications for leases on the publiclands. Due to this reorganization, at the present time we are hoping that the Bureau of Land Management may go forward with its perpetuation of land title records, something vitally impor- tant, as of course every lawyer imme- diately understands. The base of title to land, of course, rests in the patent from the Government. ‘We found that those records were in a deplorable condition. A very consider- able portion of the money proposed to be added for general administration is going into the work of bringing the records up to date in the Land Depart- ment, and perpetuating those which are vital to land titles. Mr. O’MAHONEY. Mr. President, I should like to supplement what has been said by the distinguished chairman of the subcommittee in charge of this chap- ter of the bill and by the Senator from Oregon. The Senator from Arizona has covered these particular items in some detail. I have sent for the record of the receipts of the Bureau of Land Manage- ment, and I think the receipts are of such striking importance that they de- serve a mention in the Recorp. As the Senator from Arizona, has sald, the Bureau of Land Management pro- duces revenue for the Federal Govern- ment. Several years ago Congress passed the so-called Taylor Grazing Act for the purpose of preventing overgraz- ing and of repairing the damage which had been wrought by overgrazing in the past. So that an appropriation for re- seeding these lands is merely a part of the program of overcoming the results of overgrazing in many, many years past. The total actual receipts of the Bu- reau of Land Management during the fiscal year 1949 amounted to $37,149,433.89. Mr. DOUGLAS. Mr. President, will the able Senator from Wyoming yield to me? Mr, O’MAHONEY. I yield. Mr. DOUGLAS, I am sure the very able Senator from Wyoming does not mean to contend that it has been the Bureau of Land Management which is producing this $37,000,000. It has been the public lands that has produced it. The Bureau of Land Management has merely been a real estate agent manag- ing the property and collecting the fees. Mr. O’MAHONEY. Oh, yes, the Bu- reau of Land Management has 6 great deal to do with the production of the revenue by the management of the Jeases and of the various holdings upon JULY 18 the public domain. For example, it would be utterly impossible to procure the revenue derived by the Government from the production of oil and gas and coal upon the public domain if we did not have an efficient Bureau of Land Management. Mr. DOUGLAS. The question is whether we are not paying too much for the whistle. Mr. O'MAHONEY. No. I am sure if the Senator had the opportunity to ex- amine the testimony adduced before this committee he would agree that we are not “paying too much for the whistle.” Mr. President, I was pointing out that the income in 1949 amounted to $37,149,- 000. In 1950 it was increased to $38,- 850,000. The best estimate submitted to us by the Bureau of Land Management— and these figures have not been ques- tioned anywhere—indicate that in the fiscal year 1951 the revenue will be more than $44,000,000. With respect to the appropriation dealing with forest management, that in- cludes expenditures of various kinds to make available for the commercial ac- tivities of the country and the sale of public timber the forests which are on the area administered by the Bureau of Land Management. The O. and C. timber sales in 1949 amounted to $3,532,000. It is estimated that in 1951 they will amount to approx- imately $4,000,000, or an increase of al- most half a million dollars over 1949, It seems to me that an appropriation of $75,000 for the management of these revested timberlands which are likely to produce a revenue of $4,000,000, or in excess of that, during the year in which the expenditure is to be made, is not at all out of line. Other timber sales have increased from $331,000 in 1949 to almost’ $500,000 in 1950, and it is estimated that next year we shall have an increase of $600,- I assure the Senator from Illinois that if he had searched for a place in which his argument for a reduction was less likely to apply than in any other place in the bill, he has found it when he has tackled the Bureau of Land Management. Mr. DOUGLAS. I can appreciate the Senator’s argument but feel that the in- crease of $541,000 over last year already allowed by the House should be suffi- cient. I therefore hope the committee increase will be rejected. The PRESIDING OFFICER. The question is on agreeing to the committee amendment on page 235, line 22. The amendment was agreed to. The PRESIDING OFFICER. The next committee amendment will be stated, The next amendment was on page 236, line 1, after the word “Management”, to insert a colon and the following addi- tional proviso: Provided further, That of the appropria- tions herein made in connection with the Revested Oregon and California Rallroad and reconveyed Coos Bay Wagon Road grant lands, expenditures may be made for weed control on such lands, including those under cooperative weed-control agreements with the State and counties. The amendment was agreed to,
1950 The next amendment was, under the subhead “Construction,” on page 236, line 14, after the word “expended”, to oe out $600,000” and insert “$800,- Mr. DOUGLAS, Mr. President, in the fiscal year 1949-50 no direct appropria- tion was made for this purpose, but a contract authorization of $200,000 was approved. The House bill provided for an appropriation for the coming year of $600,000, of which $200,000 was for the liquidation of the prior contract author- ity, leaving $400,000 in new money. The House appropriation therefore doubled the volume of last year’s operation. The Senate ups this figure by $200,000, thus nearly trebling last year’s figures. In view of the fact that the House figure already doubled last year’s fig- ure, I think the amendment should be rejected. Mr. HAYDEN. Mr. President, the ac- cess roads enable the Government to se- cure a higher price for its stumpage. If we do not build access roads into the forests, then the large lumber companies that can afford to build roads make a low bid for the timber in the area, and that figure is all the Government gets from the stumpage. Whereas with construc- tion of access roads, the increased price for the timber as a result of competition between the different buyers, enables the Government to make money out of the transaction. If there is in this bill a money-making provision, designed to put more money into the Treasury, it is in this item. I should like to remind the Senator from Illinois that there are two ways of balancing the budget. One is to cut expenditures and the other is to bring more money into the Treasury. Mr. DOUGLAS. Mr. President, I sim- ply wish to say that there seems to be no way of solving this question; there are not two ways, there seems to be no way of doing it. Mr. CORDON. Mr. President, with respect to this particular item I should like to say to the Senate that here and there over the United States the Gov- ernment is in business, as distinguished from its primary duty and obligation of governing. This is a case where the Government stands in the shoes of pri- vate ownership. It is managing, op- erating, and selling timber on 6 vast area of approximately 2,400,000 acres. This is a large area of timber land, much of it stil] untouched, so far as cut- ting is concerned. It is in a very moun- tainous area, which is inaccessible ex- cept as roads are built, and they are very expensive to build because of the mountainous terrain. Unless access roads can be built much of the timber will not be sold. We will not get money for it, but we will lose it, because it will go the way of all over-mature timber, through rot, insect pest, windfalls, and the like. ‘The building of access roads into these areas is a sound business ap- proach to the management problem. The private owners who have vast hoid- ings build access roads; they build many more miles of such roads per section then the Government has ever dreamed of building. The private owners do so because tt is sound business and 9 good investment, CONGRESSIONAL RECORD—SENATE The Government seeks each year to add a, few miles to its access roads pro- gram. It loses no money by doing so, for it is repaid by means of the in- creased stumpage value of the timber which is brought out, which, by the way, Mr. President, returns an annual profit to the United States Treasury. Further- more, the access roads permit of man- agement looking toward the regrowth of the forests, so that timber can be har- vested again, and so that finally a com- plete reproduction stand of timber will be developed, and will be there for our children and their children. So it is a sound investment and is good business. Mr. KILGORE. Mr. President, will the Senator yield for a question? Mr. CORDON. I am happy to yield. Mr. KILGORE. Is it not also a fact that the building of the access roads enables the smaller, independent pro- ducers of timber to bid on the Govern- ment stumpage; and, therefore such roads are an aid to small business? Mr. CORDON. There can be no ques- tion at all about that. Although there are not many what we would call big- business lumber enterprises in that par- ticular area, there are many which are very small, many which have no pri- vately owned timber, but which depend for their operations upon Government timber. This type of access road will aid them and will increase the number of bids; and when the number of bids is increased, the price on the bids goes up. Mr. KILGORE. I should like to ask one other question. I think the Senator is well aware of this matter. Is it not a fact that timber which has passed maturity is not the best timber? In other words, when timber reaches ma- turity, that is the time to cut it, and if it is not cut then, we run the risk of losing the timber. Is that not true? Mr. CORDON. There can be no ques- tion about that. Mature timber is not subject to deterioration for a consider- able number of years after it reaches maturity, but it is more susceptible than is thrifty, growing stock. Once it starts going downhill, it deteriorates rapidly, and every dead tree is a menace to thou- sands of live trees. The PRESIDING OFFICER. The question is on agreeing to the commit- tee amendment on page 236, in line 14. The amendment was agreed to. The next amendment was, under the subhead “Administrative provisions,” on page 237, line 4, after the word “title”, to strike out the following provisos: Provided, That of appropriations herein made for the Bureau of Land Management expenditures in connection with the revested Oregon & Californie Railroad and reconveyed Coos Bay Wagon Road grant lands shall be reimbursed from the 25 percent referred to in section c title II, of the act approved August 28, 1037, of the special fund desig- nated the “Oregon and California Land Grant Fund” and section 4 of the act approved May 24, 1939, of the special fund designated the “Coos Bay Wagon Road Grant Fund”: Provided further, That no part of such ap~- propriations ahall be available for expendi- ture in connection with such lands in exceas of such reimbursements during the current fiscal year. 10505 mont insert in lieu thereof the follow- Provided, That of appropriations herein made for the Bureau of Land Management, expenditures in connection with the revested Oregon & California Railroad and reconveyed Coos Bay Wagon Road grant lands for pay- ment of current expenses in connection with the management of such lands of a type paid from the separate appropriation heretofore made in connection with such lands shall be reimbursed from the 25 percent referred to in section c, title II, of the act approved August 28, 1937, of the special funds desig- nated the “Oregon and California Land Grant Fund”’ and section € of the act approved May 24, 1939, of the special fund designated the "Coos Bay Wagon Road Grant Pund”: Provided further, That no part of such ap- propriations for such current expenses shall be available in excess of such reimbursements for the current fiscal year. The amendment was agreed to. The next amendment was, under the subhead ‘‘Range improvements,” on page 238, line 11, after the word “received”, to insert “(not to exceed $350,000) .” The amendment was agreed to. The next amendment was, under the subhead “Payments to States (proceeds of sales) ,” on page 238, line 19, after the word “lands”, to insert “and materials”; and in line 22, after the word “receipts”, to insert “(not to exceed $20,000).” The amendment was agreed to, The next amendment was, under the subhead “Payment to Oklahoma,” on page 239, line 8, after the word “re- ceived”, to insert “(not to exceed $4,000) .” The amendment was agreed to. The next amendment was, under the subhead “Leasing of grazing lands,” on page 239, line 16, after the word “re- ceipts”, to insert “(not to exceed $6,000) ."” The amendment was agreed to. The next amendment was, under the subhead “Payments to States (grazing fees),” on page 289, line 22, after the word “received”, to insert “(not to ex- ceed $300).” The amendment was agreed to. The next amendment was, under the subhead “Bureau of Indian Affairs— health, education, and welfare services,” on page 240, line 14, after the word “lands”, to insert “research among mixed Indians and non-Indian groups including cooperation in medical re- search of benefit to Indians.” The amendment was agreed to. The next amendment was, on page 240, in line 19, after the word “festivals”, to strike out “$37,929,000” and insert “$40,262,328.” Mr. DOUGLAS. Mr. President, I can appreciate the desire of both the House committee and the Senate committee to improve the welfare of the Indians, [ think we all owe a debt to the Indians, and I commend the House committee and the Senate committee for their desire to help them, However, I should like to point out that in the current fiscal year the appropria- tion for the health and welfare of the Indians is $32,535,000. The amount carried in the House ver- sion of the bill, therefore, is an increase of approximately $6,400,000 over the ap- propriation for the present fiscal year.
10506 The proposal of the Senate committee is to make a further increase of approxi- mately $2,325,000. Mr. President, it seems to me that we are making proper progress in our care of the Indians. In view of the present international situation, despite my natural sympathies for this program, I believe we should slow down the rate of increase in the provision of such funds. Probably it hurts me more to propose this amendment than it hurts anyone else in the Senate. It pains me exceedingly. However, I submit that an increase of $5,400,000 over last year’s appropriation is sufficient. Therefore, Mr. President, much as it distresses me to make this request, nev- ertheless in the interest of economy and of conserving our resources for the diffi- cult international situation, I hope the chairman of the subcommittee will be filled with compassion and will withdraw the committee amendment, and will ac- cept the-munificent amount proposed by the House, namely, $37,929,000. I await the generosity of the chairman of the subcommittee in this matter. Mr. HAYDEN. Mr. President, I am sorry, but I cannot follow the Senator's reasoning. In the first place, we were compelled to restore the amount for the California Indians, which everyone agrees should be done. We restored funds for Califor- nia Indians on the same basis as funds were allowed for Indians in other States. The House had deleted $1,286,883 for Cal- ifornia Indians, Mr. DOUGLAS. Is the item for the California Indians over $1,000,000? Mr. HAYDEN. Yes. Mr. DOUGLAS. Would the Senator then compromise on a figure to be made up of the amount of the appropriation as voted by the House of Representatives plus the amount required to care for the California Indians? I should be very happy to agree to that, even though I should think that the five million four hundred thousand already granted by the House should be enough to cover this situation. Mr. HAYDEN. There was another item which was not properly accounted for by the House of Representatives, in the judgment of our committee. The Senator, as an educator, will agree with me, I am sure, that the best way to teach the Indian children the English language and to become participating American citizens is to enable them to associate with other children on the playgrounds of public schools. Iam sure the Senator from Illinois will agree as to that, namely, that if an Indian child can be sent to a public school, where he can play on the playground with white children, he will learn more than he will learn in any other way the lessons which will teach him to become an American. That has been demonstrated over and over again by the failure of day schools on the Indian reservations and the failure of boarding schools to bring the Indian children into accord with Ameri- can ideas so that they can become a part of our civilization, In order to meet the requirements of the States with respect to providing for the need in the case of Indian children CONGRESSIONAL RECORD—SENATE attending public schools, it is necessary to increase this appropriation above the amount voted by the House of Repre- sentatives. The House of Representa- tives did not allow sufficient to meet the pending contracts with the States for payments for Indian children in the public schools. That item accounts for $326,000 of this incrcase. Mr. DOUGLAS. Then would the Sen- ator settle for the increased cost for the California Indians plus the increased cost of taking care of the boarding- school Indians? I still think that a $5,400,000 increase should be enough, but I shall not be unreasonable. Mr. HAYDEN. When I state the third reason for making the increase, I think the Senator will agree that the increase should be made. The committee in- cluded $400,000 for public-assistance payments to other than Navajo and Hopi Indians in Arizona and New Mexico, which is the same as the amount appro- priated for 1950 for this purpose. In the absence of this item in this bill, there is no other provision for these Indians who are in need of public assistance. Furthermore, the Congress passed an act increasing the amounts of money to be made available to Navajo and Hopi Indians for their education, their wel- fare, and rehabilitation generally. In this appropriation bill, however, the Senate committee has not voted to allow the full amount of money re- quested for 1951 to start carrying out the Navajo-Hopi authorization of last year; but the committee did increase the amount above that allowed by the House of Representatives in order to meet that new authorization passed by Congress Jast year. Those are the three reasons why the increase should be made. All those rea- sons are sound and proper, and they should meet with the approval of the Senator from Ilinois. Mr. CHAVEZ. Mr. President, will the Senator yield? Mr. HAYDEN. I yield. Mr. CHAVEZ. Not only is the policy sound, and not only is the item sound, but the committee was most conserva- tive in approving the item as it appears in the bill as reported by the committee. I wish the Senator from Illinois would understand what is behind this particu- lar item. Iam sure he would if he would only investigate the situation and would study the evidence adduced before the committee. If there is one item that is worthy of consideration in connection with this particular bill, it is this item. The In- dians can not take care of themselves in the way that the Senator from IIli- nois can take care of himself. Of course, the Indian is called upon to go to work, and he is drafted, and of course he can raise the flag on Iwo Jima; but then we complain because he is helped by a small amount of money. I think that if the Senator from Mlli- nois would investigate the situation which exists among the Indians he would be as enthusiastically in favor of the pending amendment as is any member of the committee, JuLy 18 The PRESIDING OFFICER. The question is on agreeing to the committee amendment on page 240, line 19. The amendment was agreed to. The next amendment was, under the subhead “Resources management,” on page 241, line 6, after the word “exhib- its”, to strike out “$10,542,000” and in- sert “$10,814,576.” The amendment was agreed to. E. I. DU PONT DE NEMOURS & CO.'S RELA- TIONS WITH SMALL BUSINESS Mr. FREAR. Mr. President, I am rather reluctant to take a few minutes of the time of the Senate when the gen- eral appropriation bill for 1951 is under consideration, but I have a few words I should like to have the Members of this distinguished body hear. As the Senate well knows, Mr. Presi- dent, I have always been opposed to out- right monopoly which tends to stifle competition among small enterprises. AS @ small businessman myself, I am well aware of how much these modest- sized organizations have contributed to the growth and development of our great free enterprise system. The continued existence of American business is the economic lifeblood of the United States. Surely we all recognize that fact, and, as part of our responsibilities here, the Congress has from time to time taken steps to assist small business through the extension of loans and other serv- ices, The terms “small business” and “large business” are somewhat relative. Arbi- trarily, we may say a business is small if its assets do not exceed, say, $25,000. It is a large business, perhaps, if its hold- ings total a million dollars. No doubt some would use other figures in making this comparison. In my State of Delaware, we have bus- inesses of all sizes—hundreds of them— stretching from one end of the State to the other. In the city of Wilmington, which some choose to call the chemical capital of the world, there are located the main offices of E. I. du Pont de Ne- mours & Co. This organization, which started many years ago from & very modest and humble beginning on the banks of the Brandywine River, has grown to be one of the largest chemical companies in the Nation. Its assist- ance, incidentally, to the United States Government, particularly in times of emergency, has been especially notable. This was clearly shown in the field of atomic energy. The du Pont Co. played a tremendous part in the successful de- velopment of the atomic bomb. Since then, I believe, it has withdrawn from endeavors along that line because of the fact that its work is primarily in the field of chemistry. In the present emergency, I am sure the company’s facilities and its person- nel stand ready at any time for a call by the Government. However, Mr. President, I am not mak- ing these brief remarks to cite the du Pont Co.’s war record or to heap praise on its many contributions to better liv- ing. What Ido want the Senate to know about is an incident concerning the operations of the du Pont Co. and its relation to small-business organizations
1950 which came to my attention within past week. the As everyone knows, cellophane, de- veloped and manufactured by du Pont, fs one of the greatest single contribu- tions for the preservation and sanitary safekeeping of foods and dozens of other commodities that has ever been de- veloped. Cellophane is a byword among American housewives, many of whom would not think of purchasing food prod- ucts, particularly, which are without its protection. The development of cello- phane was hailed as an accomplishment of tremendous proportions when it was first successfully produced. Manufac- turers throughout the country who make and market scores of products leaped at the opportunity to enhance the appear- ance and to insure the protection of their goods by packaging them in cellophane, As a result, the sales of cellophane in- creased, and its demand became more and more widespread. A few years ago, the du Pont Co., which had foreseen this increased de- mand, proposed to increase its cello- phane producing capacity in order to take care of the expanding market. It went ahead with preliminary plans, estimates, and the investigation of plant sites. All this was well under way when the Department of Justice, in December 1947, brought suit against the company, charging that its position in the cello- phane business constituted a monopoly. AS a result, the company considered it unwise to proceed with its expansion program. I want it clearly understood, Mr. President, that I am taking no position with respect to either the charges of the Department of Justice or the counter- charges of the du Pont Co. in this case. I feel that since this matter is now be- fore the courts, it would be improper for me to take a stand, even if I were in- clined to do so. In any event, the situation in which the du Pont Co. found itself with respect to the production of cellophane, as a result of this sult, was quickly reflected throughout the country as the demand for cellophane centinued and the supply became short. I now cite the incident to which I re- ferred in my remarks a few moments 0. There is a business tn Gloucester, Mass., known as the Davis Fisheries. This company, I understand, puts out fish products and proposes to wrap them in cellophane. In order to obtain the various cellophane sheets that it re- quired, the company endeavored to pur- chase for its needs through the du Pont Co. I learned through the office of the distinguished majority leader of the United States House of Representatives that a company representative was de- sirous of contacting a person of author- ity in the du Pont Co. with whom to dis- cuss the buying of cellophane. I was pleased to suggest to the majority lead- er, for the information of his constitu- ent, that I would contact the du Pont CONGRESSIONAL RECORD—SENATE. sentative to talk over the Davis Fisheries’ needs, I was advised that the current aituation with respect to the avatlabil- ity of cellophane was not hopeful, and when I asked why, the company ex- plained the situation, which I have just Mr. President, as I have said, I deplore the existence of monopolies of any kind when their operation stifles competitive enterprise. But I ask the Senate if it ts fair to penalize the operations of this New England company and scores of others by making it so difficult for them to buy a product which is almost essen- tial for the profitable operation of their business. . It may appear that the Government did not force the du Pont Co. to suspend its plans for enlarging cellophane facili- ties, but certainly the threat of the Jus- tice Department’s lawsuit has amounted to virtually the same thing. Cellophane is now in short supply. De- mands cannot be met, and prospective buyers of this product are forced to make out as best they can without it. I might say further that the du Pont Co. has endeavored equitably to allocate the supply of cellophane which is cur- rently being produced. In addition, the company has actively sought to interest others in the manufacture of cellophane in order that additional supplies will be available to the trade as soon as possible. However, it required more than a year and a half to find a company willing and able to invest the large amount of cap- ital—approximately $20,000,000—which was necessary to enter the field on an economically efficient basis. At the pres- ent time, construction is under way on a new cellophane plant, designed and being built by du Pont for Olin Indus- tries, Inc., in North Carolina. It is to have an initial capacity of approxi- mately 33,000,000 pounds annually. All du Pont cellophane patents and kow- how are being made available to this company. It is hoped that this plant will be in production by the middle of next year. Iam sure Senators will agree with me that these are rather extreme steps for the company to take in increasing the available supply of cellophane. It therefore seems to me, Mr. Presi- dent, that at a time when our capitalistic system and the democratic way of life is being so ruthlessly challenged, we should encourage rather than restrict the con- tinued activities of American business, both small and large. A company is not good or bad merely because of its size. Its right to exist, and to manufacture and Sell its products can most properly be determined by the American people themselves. The devel- opments in the field of chemistry by the du Pont Co. and others have resulted in the creation of goods which have found world-wide acceptance. Cellophane is just one, In adidtion, there are nylon, orlon, and countless others. In my opinion, if the du Pont Co., or any other company, manufactures a product which is needed and accepted so uni- versally as is cellophane, I feel tt should be allowed to do so without being charged with monopolistic practices. American consumers and American business want 10607 chemica] products and they want them now, I should like to my that the cost of e has been reduced in price several times since its first appearance on the market. It is my opinion that this does not seem to substantiate the charges of fixing prices at higher and higher levels which is usually attributed to monopolies. I ask, therefore, Mr. President, why this company, or any other, should not be allowed to fulfill the desires of its po- tential customers? GENERAL APPROPRIATIONS, 1951 The Senate resumed the consideration of the bill (H. R. 7786) making appro- priations for the support of the Govern- ment for the fiscal year ending June 80, 1951, and for other purposes. The PRESIDING OFFICER (Mr. O’Manonry in the chair). The clerk will state the next amendment. The next amendment was, under the subhead “Construction,” on page 241, line 13, after the word “expended”, to strike out “$22,422,000” and insert “$23,- 635,151"; in line 18, after the word “exceed”, to strike out “$2,500,000” and insert $5,000,000", and in the same line, after the amendment just above stated, to insert a colon and the following provisos: Provided, That no part of the sum herein appropriated shall be used for the acquisi-+ tion of land within the States of Artmona, California, Colorado, New Mexico, South Dakota, Utah, and Wyoming outside of the boundaries of exiating Indian reservations: Provided further, That no part of this ap- propriation shall be used for the acquisition of land or water rights within the States of Nevada, Oregon, and Washington either in- side or outside the boundaries of existing reservations. The amendment was agreed to. The next amendment was, under the subhead “General administrative ex- penses,” on page 242, line 14, after the word “offices”, to strike out “$3,500,000” and insert “$3,644,000.” The amendment was agreed to. The next amendment was, under the subhead “Administrative provisions,” on page 242, line 24, after the word “ex- ceed”, to strike out “two hundred and twenty-seven” and insert “two hundred and fifty.” Mr. DOUGLAS. Mr. President, this is a further commitment for additional Government automobiles. Two hundred and twenty are for replacements, and thirty are a net increase in the total number, My general observation is that if there is any product of which the Government has an excess supply, it is sutomobiles. I have noticed that wher- ever there is a Government bureau there is a large number of automobiles. I do not always object to replacing automo- biles that are truly worn out; I am even willing to add seven to the total, so that the hard-worked Indian agents as they go about their ministering tasks may have additional transportation. But why they should have 30 more automobiles I do not know. I shall probably be in. formed that this is the most meritorious item in the bill, and that to take away these automobiles will be striking a biow
10508 at the heart of “lo, the poor Indian”; but, personally, I hope we can hold to the House figure of 227. Mr. HAYDEN. The budget estimate was not 227 but was 327. The Bureau of the Budget, after canvassing all of the recommentiations made by the Bu- reau of Indian Affairs as to its necds throughout the United States, recom- mended $27 automobiles. Mr, DOUGLAS. I may say to my good friend from Arizona that we have, nat- urally, a high opinion of the Bureau of the Budget, but members of that Bureau are human beings, like the rest of us; they breathe and move, eat, and drink. They are not superhuman. They are also Government employees. If there is one thing that makes a Government em- ployee slightly lose his balance, it is the prospect of riding around in a big auto- mobile. They seem to have an instinc- tive bias in favor of having more and bigger automobiles and more costly auto- mobiles. Therefore the committee has done well to cut'the number down to 250, but we should not make our standard the ideas of the Bureau of the Budget. I am willing to provide 7 automobiles, but I do not want to provide 30. . Mr, HAYDEN. There are 110 Indian jurisdictions scattered. throughout the United States. They cover a vast area. We must realize that many of the auto- mobiles which are now in operation have been in operation a very long time. ‘ Mr, DOUGLAS. I am willing to pro- vide for replacements in this instance. That is not the issue between us. The question is the rate of growth of the governmental automobile family. I think we should place a certain restric- tion on the degree to which the family should be allowed to extend. Inciden- tally, I think it would be better if we had less expensive operation. Mr. HAYDEN. There is a strict limit on the cost of automobiles. They are all of medium price. The only automobiles costing any amount above the medium price are those for Cabinet officers. Mr. McKELLAR. Mr. President, will the Senator yield? Mr. HAYDEN. I yield. Mr. McKELLAR. Did the committee hear testimony and determine the num- ber, after going into the facts, and did it determine what was the right and proper number the agency should have? Mr. HAYDEN. We took neither the number recommended by the Bureau of the Budget nor the number recommend- ed by the Bureau of Indian Affairs. These automobiles are necessary in the performance of the service, and are pri- marily for additional nersonnel provided for in the Navajo-Hopi long-range pro- gram of educational and health activi- es. This item does not carry any sum for the purchase of vehicles, but stipulates the number that may be purchased from funds elsewhere provided in the bill. Mr, MCKELLAR. Mr. President, I am not a member of this subcommittee and I have taken no part in its deliberations, except in a very general way; but I should like to say to the Senator from Tilinois that he has a very wrong idea about the duties of an Appropriations CONGRESSIONAL RECORD—SENATE Committee, and especially this particular subcommittee. A committee does not go off half-cocked. It takes proof from wit- nesses who appear before the members of the committee, The members of the committee go into the facts very care- fully. They do not merely Jump at con- clusions. They do not guess, as perhaps the Senator from Illinois is guessing when he talks of what ought to be done and what ought not to be done. They hear proof. That has been done for 20 or 30 years. Upon the proof before them they exercise their best judgment. I hope the chairman of the subcom- mittee will not undertake to compromise with the Senator from Illinois unless the Senator from Tlinois brings some facts before him, rather than merely enter~ taining an idea that we might trim the budget on this small matter. Mr. DOUGLAS. Is it the contention of the very able senior Senator from Ten- nessee, the chairman of the Appropria- tions Committee, that the Senate should accept without question every item as it is proposed by subcommittees and com- mittees? Mr. McKELLAR. Oh, no; not at all. However, I do say that the subcommittee ought not to be guided by the Senator from IHinois, who during this day has not suggested a single fact upon which the position that he takes can be sus- tained. The Senator has not heard the facts. I doubt if the Senator has ex- amined into the question of how many automobiles ought to be given to this activity. In order that I may be certain ebout it I shall ask the Senator from Illinois if he has examined into this matter and has heard witnesses testify? Mr, DOUGLAS. I was not present when witnesses testified. Mr. McKELLAR. Does the Senator know anything about it? Mr. DOUGLAS. I think I do. Mr. McCKELLAR. What does he know about it? Mr. DOUGLAS. I think there is a general presumption—-—— Mr. McKELLAR. Oh, no; we do not go on presumptions. We go on proof. Mr, DOUGLAS, I think that what we know as men we cannot pretend to be ignorant of as Senators. Mr, HAYDEN. Mr. President, let me point out that the House of Representa- tives has provided for additional doctors, additional nurses, and additional school teachers on the Indian reservations. If the Senator will tell us how the addi- tional doctors, the additional nurses, and the additional school teachers can go about their business with the same old nur-ber of decrepit automobiles, I wish he would do so. Mr. DOUGLAS. In the first place, we are providing 220 cars as replacements. Z am willing to provide something to- ward growth, However, it is a question of whether we shotild go overboard on this large additional number of vehicles. Mr. HAYDEN. We did not go over- board on it. We allowed a reasonable number for the increased number of doctors, nurses, and school teachers. Is it consistent to provide new positions and not means of transportation for those thus employed? | JULY 18 Mr, LANGER. Mr. President, will the Senator from Arizona yield for a ques- tion? Mr. HAYDEN. Yes. Mr. LANGER. How many automo- biles does the Indian Department have now? Mr. HAYDEN. I do not have the figure. Mr. WILLIAMS. I should like to put the figures in the Recorp. I have them here. I wish to support the position of the Senator from Illinois in opposing the committee amendment with regard to the number of automobiles to be pro- vided for this agency. The Department of the Interior in 1933 operated with 1,481 automobiles. At the present time it has 4,433 automobiles. I do not have a breakdown for this particular agency. However, another increase is proposed. Therefore, I wish to join with the Sen- ator from Illinois in protesting this con- tinuous increase in the number of au- tomobiles which are made available to Government agencies. I see no sense to it whatever. We have, according to the Bureau of the Budget, 20,119 automobiles in use in the executive branch of the Gov- ernment, not counting the military au- thorities. I think that is entirely too many cars. Each year the appropriations call for an increase. I think it is time we put a stop to it. According to the number of automobiles and replace- ments which have been authorized in recent years it would seem to me that these cars are relatively new and should be in good condition. Mr. LANGER. As I recall, there are only 233,000 Indians. According to the report, at page 405, the Bureau of Indian Affairs already has 1,531 passenger ve- hicles, Some of them are 7, 8, or 10 years old, and it is claimed that they are no longer economical to operate. Does not the Senator think, however, that 1,531 cars are sufficient for that agency? Mr. HAYDEN. No; they are not. We must remember that the cars must be distributed among 110 jurisdictions. Then we must remember that we have Indian boarding schools, as the Senator knows, and Indian hospitals. When we take them altogether, the total number is not too high, in my judgment. Mr. WILLIAMS. Will the Senator yield for a question? Mr. HAYDEN. Yes. . Mr, WILLIAMS. Is there any reason why some of the people in the agencies in Washington should not furnish their own automobiles? Why should we fur- nish cars for them to drive back and forth between their office and homes? Mr. HAYDEN, That is an entirely dif- ferent situation. When an agent is out on the Navajo Indian Reservation, which is larger than the State of West Virginia, he must travel about to see the Indians. An agent may be out in the Sioux coun- try, where we have large reservations. The Senator may make his argument with respect to the city of Washington, and it may be true that certain em- ployees should not be provided with cars, However, that is not true out in the field, r. WILLIAMS. In view of the fact that | the Department of tie Interior has
1950 approximately 3,000 cars more than it had a few years ago, phy 40 they not . of the cars from Washington into the field? The PRESIDING OFFICER. The question is on agreeing to the amend- ment on page 242, line 24, The amendment was agreed to. The PRESIDING OFFICER. The clerk will state the next amendment. The next amendment was, under the subhead “Tribal funds,” on page 244, line 3, after the word “appropriated”, to strike out “82,430,965” and insert “$2,437,965,” The amendment was agreed to. The PRESIDING OFFICER. clerk will state the next amendment. The next amendment was, on page 245, line 1, after the word “laws”, to strike out the colon and the following proviso: Provided, That in addition to the amount appropriated herein, tribal funds may be ad- vanced to Indian tribes for such purposes as may be designated by the governing body of the particular tribe involved and approved by the Secretary. Any tribal funds advanced under this authority shall be reported to the Congress in the annual budget for the next succeeding fiscal year. And in line 8, after the amendment just above stated, to insert a colon and the following proviso: Provided, That no part of this appropria- tion shall be used for the acquisition of land or water rights within the States of Nevada, Oregon, and Washington, either inside or outstde the boundaries of existing Indian reservations. Mr. HUNT, Mr. President, I offer an amendment to the committee amend- ment. On page 245, line 10, I move the following amendment: After the word “Oregon”, strike out the word “and”; after the word “Wash- ington”, insert the words “and Wyo- ming” and a comma. If the distin- guished chairman of the committee will accept my amendment, I shall not dis- cuss it. Mr, HAYDEN. I shall be very glad to accept it. The PRESIDING OFFICER. The question is on agreeing to the amend- ment offered by the Senator from Wyo- ming to the committee amendment. The amendment was agreed to. Mr, CHAVEZ. Mr. President, several years ago a similar provision was in- serted in an appropriation bill. It pro- vided for the acquisition of land. I recall that it involved Arizona, New Mexico, and some other States. Does this amendment refer to that particular subject? Mr, HAYDEN. If the Senator will look at page 241, he will find the provi- sion which relates to the acquisition of land outside of reservations in Arizona, California, New Mexico, and other States. This provision relates to the acquisition of land within reservations. The PRESIDING OFFICER. The question is on agreeing to the commit- tee amendment, as amended. The amendment, as amended, was agreed to. The PRESIDING OFFICER. ‘The clerk will state the next amendment of ‘the Committee on Appropriations. — XOVI-——662 The CONGRESSIONAL RECORD—SENATE The next amendment was, under the subhead “General investigations,” on Page 246, line 5, after the word “ex- pended”, to strike out “$5,150,000” and insert “$6,500,000”, and in line 6, after the word “which”, to strike out “$4,- 400,000” and insert “$5,791,000.” ORDER OF BUSINESS Mr. MAYBANK. Mr. President, a parliamentary inquiry. The PRESIDING OFFICER. The Senator will state it. Mr. MAYBANK. I understood that at 6 o'clock, by unanimous consent, the Benate was supposed to proceed to the consideration of the nominations to the Board of Directors of the Export-Im- port Bank. The PRESIDING OFFICER. There was no unanimous-consent agreement. The senior Senator from Mlinois an- nounced that he would make a motion. Mr. MAYBANK. I merely desired to find out what the situation was. - Mr. LUCAS. Mr, President, last eve- ning I did advise the Senate that at 5 o'clock today I would move that the Sen- ate go into executive session for the pur- pose of the consideration of the Export- Import Bank nominations. I dislike very much to disrupt the con- sideration of the pending bill, which seems to be moving along very well. But these nominations are exceedingly im- portant, The members of the Board of Directors of the Bank are serving with- out salary, and not much business is being done by the bank or can be done until these nominations are confirmed, Mr. MAYBANK. Mr, President, will the Senator yield? Mr. LUCAS. I yield to the Senator from South Carolina. Mr. MAYBANK. I have no desire to disrupt the consideration of the Interior Department chapter of the appropria- tion bill, but I wondered if the Senator from Illinois intended to bring the nam- inations up after that chapter of the bill had been completed. Mr. LUCAS. If I could have some assurance that it would not take too Jong, perhaps that chapter could be com- pleted. I hope we may get through with the nominations in a couple of hours. Mr. MAYBANK. I merely desire to ascertain what the situation is. I want the Senator from Illinois and the Sena- tor from Arizona distinctly to under- stand that I do not intend to hold up the pending bill, but I have a few re- marks to make about the directors of the bank, against whom no one appeared in the committee. EXECUTIVE SESSION Mr. LUCAS. Mr. President, I move that the Senate proceed to the considera- tion of executive business. The motion was agreed to, and the Senate proceeded to the consideration of executive business. EXECUTIVE MESSAGES REFERRED The PRESIDING OFFICER (Mr. O'Masonxy in the chair) laid before the Senate messages from the President of the United States submitting sundry nominations, which were referred to the appropriate committees, 10509 (For nominations this day. recelved, see the end of Senate proceedings.) EXECUTIVE REPORT OF A COMMITTER ’ The following favorable report of a nomination was submitted: By Mr. JOHNSON of Colorado, from the Committee on Interstate and Foreign Com- merce: Maj. Gen. Phillp B. Fleming, United States Army, retired, to be Under Secretary of Commerce for Traneportation, NOMINATIONS TO BOARD OF DIRECTORS OF EXPORT-IMPORT BANK Mr. LUCAS. Mr. President, I ask that the Senate proceed to the consideration of the nomination of Hawthorne Arey, of Nebraska, to be a member of the Board of Directors of the Export-Import Bank of Washington for a term of 5 years. The PRESIDING OFFICER. The Clerk will state the nomination. The legislative clerk read the nomina- tion of Hawthorne Arey, of Nebraska, to be a member of the Board of Directors of the Export-Import Bank of Wash- ington for a term of 5 years. Mr. MORSE. Mr. President-—— The PRESIDING OFFICER. The Senator from Oregon is recognized. The question before the Senate is, Will the Senate advise and consent to this nomi- nation? Mr. MORSE. Mr. President, I rise to oppose the nomination. Mr. LANGER, Mr. President, will the Senator yield that I may suggest the ab- sence of a quorum? I had an under- standing with the minority leader that I would call for a quorum when these nominations were taken up. Mr. MORSE. If the Senator makes the request in behalf of the minority leader, I yield. Mr. LANGER, I suggest the absence of a quorum. The PRESIDING OFFICER. The clerk will call the roll. Mr. MAGNUSON. Mr. President—— The PRESIDING OFFICER. The absence of a quorum has been suggested. Mr. MAGNUSON. I wonder if the Senator from North Dakota will with- hold his suggestion until I raay ask a question, The PRESIDING OFFICER. Does the Senator from North Dakota with- hold the suggestion? Mr. MAGNUSON. Just for a mo- ment. Is it the intention that we pro- ceed with the Interior Department ap- propriations when we are through with the executive calendar, or does the ma- jority leader intend to move a recess? ’ The PRESIDING OFFICER. The Senator from Arizona (Mr. Haypen], in charge of the bill, has stepped out of the Chamber. . Myr. MAGNUSON. I think we can fin- ish with the Interior Department section of the bill in an hour. Mr. LUCAS. Mr. President, it is spec- ulative as to how long it will take to finish this particular phase of the ap- propriation bill. The nominations be- fore the Senate are important, and I served notice yesterday that we would proceed to consider them today. If the Senator from North Dakota, the Senator
Mr. LUCAS. I demand the regular order, The PRESIDING OFFICER. The The legislative clerk called the roll, and the following Senators answered to their names: And ei Maybank jerson Benton Millikin Brewster Hickenlooper Morse Bricker min Mundt Briiges Hoey Murrey Butler Holland Myers Byra Neely Capehart Hunt O’Conor Chapman Ives O'Mahoney Gonnably Johnson, Colo. Robertson » Colo, Cordon Johnson, Tex. Russell Darby Kem Saltonstall Donneli Kerr senor ne Dougias Edgore Langer Bmith, N EZastiand Leahy Stennis Ecton ‘Taft Ellender Lodge Thomas, Ferguson U08s Thomas, Utah Flanders McCarran Thye McCarthy Tydings Fulbright McClellan Watkins McFarland Wherry Gillette MoKellar Wiley Magnuson Green Malone Young The PRESIDING OFFICER (Mr. Granam in the chair). A quorum is present. Mr. MAYBANK. Mr. President, will the Senator from Oregon yield to me? Mr. MORSE. I yield to the Senator from South Carolina. Mr. MAYBANK. Mr. President, I merely wish to say that I am sorry that the question of confirmation of the nom- inations of the members of the Board of Directors of the Export-Import Bank is brought up at this late hour in the day. As the distinguished Senator fram Oregon mentioned yesterday, the Secre- tary of the Treasury tells us that the Export-Import Bank has more or less Giscontinued operations because its di- rectors have not been confirmed, and their terms expired on July I think the Members a ‘the Benate those Positions. of them have been endorsed by the Bank- ing and Currency Committee, CONGRESSIONAL RECORD—SENATE Bo t trust that the nominations will be eonfirmed by submitted a ing for an investigation of the mort: Import Bank. I assure him that I shall welcome an investigation by the Bank- ing and Currency Committee of the Ex- port-Import Bank and any of its opera- tions. Similarly, I shall welcome the ap- pearance of the Senator from Oregon before the Banking and Currency Com- mittee, However, Mr. President, I do not think action on the nominations should be held up any longer, because the Secretary of the Treasury has advised us that no busi- ness can now be transacted by the Bank, in view of the failure to confirm the nom- inations of the directors Mr. MORSE. Mr. President, is a quorum present? The G OFFICER. Yes. Mr. MORSE. I believe that the record will show that I yielded to the Senator from South Carolina, Mr. MAYBANK. That is correct, Mr. President. Will the distinguished Senator from Oregon yield further to me for a moment? Mr. MORSE. Yes. Mr. MAYBANK. Let me say that I appreciate the courtesy of the Senator from Oregon in yielding to me. I wish to stress the fact that unless the nomina- tions of the directors of the Export- Import Bank are confirmed, the opera- tions of that bank are stopped. Mr. MORSE. Mr. President, I merely wish to say that I seldom differ with the distinguished Senator from South Caro- lina, the chairman of the Banking and Currency Committee, on matters of prin- ciple; but in this instance I differ with him on a question of procedure. I shall discuss the recommendation I have made as to how this question can be resolved. Depending on how that recommendation is handled, I shall or shall not discuss further phases of these nominations tonight. Mr. President, I propose to continue my remarks uninterrupted for a time, in the interest of continuity and clarity. I wish to assure the Senate that I do not enjoy being in the position in which I find myself this afternooon, because I have no desire to do an unkindness or an injury to a single member of the Board of Directors of the Export-Import Bank. I think there is danger that an injury may be done them even by rais-~ ing certain questions which it may be- come necessary to raise here this after- noon, I preferred to raise these ques- tions in executive session of the commit- formation which the junior Senator from Oregon seeks to obtain from the Export-Import Bank should be obtained. I want to keep the Recoap perfectly straight as to the procedure which the junior Senator from Oregon has fol on this matter. Insofar as I. have any personal ac- quaintance with any of the members of the Export-Import Bank, I like them be made. But, so that the Recoap will be perfectly clear, let me enumerate now the steps which have brought us to the point at which the Senator from Ore- gon presently finds himsetf on the floor of the Senate. These nominations were sent to the Benate on Priday, June 16, 1950. They 2 committee Currency held hearings on small business, previ- ously scheduled, on June 22, 23, 27, and 28, A committee hearing, scheduled to consider the Export-Import Bank nomi- nations on Monday, June 26, was can- celed because of a Senate Republican conference held on that day—at least, I am advised by a staff member of the committee that that was the reason for the cancellation of the hearing. I think tt 1s too bad that the hearing was can- celed; it is too bad that the hearing at least was not postponed. On June 27 the members of the com- mittee were polled regarding the nomi- nations, and thereafter the nominations were favorably reported to the Senate, the same day, by my good friend the Senator from South “Carolina (Mr. May~ BANK]. However, no formal committee meeting was held on the nominations, Since the nominations were not for- mally considered by the committee, there are no committee minutes covering any committee action on the nominations. The Recorp shows that on June 27 the junior Senator from Oregon offered the following resolution: Resolved, That the Senate Committee on Banking and Currency, or any duly euthor- iged subcommittee thereof, ts authorized and directed to make a full and complete inves- tigation of the loan policy pursued a, the Export-Import Bank of W: and the loans made by such bank, with special em- phasis on the loan policy pursued by such bank with respect to, and the loans made by auch bank to, the countries of Argentina, Brae!l, and Mexico, and private borrowers in such countries. Sac. 2. The committee shall report its find- ings, together with such recommendations as it may deem advisable, to the Senate at the earliest practicable date, but not later than January 31, 1951. On June 27, when I offered that reso- Member of this body, on a matter as im-
1950 portant as this, respectrully requests, as I did on the floor of the Senate, on June a7, that he be heard in executive session by a committee, in order to discuss cer- tain phases of the policy of the Export- Import Bank which he believes have a direct bearing on the nominations them- selves, the request of the junior Senator from Oregon should have been auto- matically granted by the committee. I want to be fair to the committee. It is true that at that time the Senator from South Carolina, the chairman of the committee, found it necessary—and I think for perfectly good cause and jus- tification—to absent himself from Wash- ington in order to go to South Carolina, q assume he left Washington in connec- tion with the campaign which was then being waged in South Carolina. I have no objections to that. But, Mr. Presi- dent, I think there were two alternatives available to the committee. It could have proceeded in the absence of the chairman, which I think the committee should have done in the interests of hav- ing hearings in executive session imme- diately. I have always had a feeling, and I still have that feeling, to a degree, that a great many of the problems which concern the junior Senator from Oregon in regard to the policies of the Export- Import Bank would probably be clarified in an executive session with the commit- tee and the chairman of the bank, and that as a result of such executive ses- sion perhaps some determination could be reached as to whether certain policies of the bank, which I think cannot be justified, would be discontinued in the future.. But the committee, in spite of my resolution, in spite of the statement I made on the floor of the Senate, did not see fit to proceed with any committee hearing during the period of time when the chairman of the committee was ab- sent from Washington. Mr. MAYBANK. Mr. President, will the Senator yield? Mr. MORSE. I will finish my state- ment, first. Mr. MAYBANK. I merely want to correct a misstatement of the facts. Mr. MORSE. I yield. If I have made a misstatement, I desire to be corrected, Mr. MAYBANK. I was in Washing- ton on June 16th, the day the nomina- tions were sent to the Senate. I did not leave until June 27th. Mr. MORSE. The Senator has just returned to the floor of the Senate and did not hear the previous remarks of the Senator from Oregon. Had he heard them, he would know that what the Sen- ator from Oregon said was that on June 2%th, when the Senator from Oregon of- fered his resolution and made his speech on the floor of the Senate, the Senator from South Carolina was here then, but it was necessary for him to absent him- self for a few days immediately there- after, The Senator from Oregon went on to explain that he thought the absence was entirely justified. He means no crit- icism of the Senator from South Caro- lina. Mr. MAYBANK. Mr. President, ifthe Senator from Oregon will yield, I greatly appreciate what he has said about me, but I was called from the Senate Cham- ber by a newspaper correspondent, who CONGRESSIONAL RECORD—SENATE wanted to ask me about something. I went out to discuss the matter with him. The only thing I wished to say was that it was on the 16th of June that these nominations were sent to the Senate. I called hearings. Nobody opposed the nominations. The nominees were en- dorsed by all the Senators from the States from which the nominees came, There were none from South Carolina. Among the Senators from those States was the Senator from North Dakota (Mr. Lancer!, who is in the Senate Chamber at this time. I wrote him a letter. He knows that. No one objected to the nom- inations. We held the hearings. No one came. No one appeared for 1 day. So I then asked the committee either to approve or disapprove the nominations. There was not a dissenting vote by any member of the committee. I merely want to keep my record straight. Mr. MORSE. I want to do everything I can to see that the Senator’s record is straight. Nothing has been said by the junior Senator from Oregon which in any way contains any error in regard to the record of the Senator from South Carolina. I simply repeat, Mr. President, that there were two alternatives which faced the committee, neither one of which the committee followed. It should have fol- lowed one of the alternatives which would have given me a hearing on these nominations after I raised a question about them. I think that after the in- troduction of the resolution on June 27 by the Senator from Oregon and the statement he made on the floor of the Senate, the Banking and Currency Com- mittee then and there should have pro- ceeded or made arrangements to proceed in executive session to hear the junior Senator from Oregon before any vote on- the confirmation of the nominations was asked for on the floor of the Senate. Not having done that, I say—and I mean no criticism of the Senator from South Carolina; I merely express a difference of opinion with him as to the procedure which should have been followed—that upon his return from South Carolina the committee then should have proceeded in executive session to hear the Senator from Oregon on these nominations be- fore they were submitted to the Senate for a vote. That is the position of the Senator from Oregon on this question. My good friend from South Carolina has advised us this afternoon that he can assure the Senator from Oregon that he will be heard in executive session of the com- mittee. However, he insists that because Mr. Snyder, the Secretary of the Treas- ury, is urging that these nominations be confirmed now, for the reason that the Export-Import Bank cannot carry on its business until they are confirmed, and because they have been hanging fire since July 1, we should vote tonight on these nominations. He proposes that after confirmation the Senator from Oregon be given a hearing in executive session on the problems and points he wishes to raise. I cannot accept that offer, for the simple reason that I do not believe in locking the barn after the horse has been stolen. If the Senator from Oregon is to receive a hearing on 10511 this question, I think it should be a gen- uine hearing on the merits of the matter, in advance of confirmation of the nomi- nations, because-—— Mr. MAYBANK. Mr. President, will the Senator yield? Mr. MORSE, In a moment. Because, Mr. President, if certain al- legations which have been presented to the Senator from Oregon can be de- veloped in committee by way of cross- examination of the Export-Import Bank nominees themselves, I want to say that we would have to have some assurance from those nominees that certain poli- cies will not be followed in the future, before the junior Senator from Oregon could vote for their confirmation and be- fore any other Member of the Senate should vote for their confirmation, I now yield to the Senator from South Carolina. Mr. MAYBANK. Mr. President, I did not insist that we vote tonight. The Senator knows that I believe in unlimited debate. I want to assure the Senator from Oregon of the fact that there was no request on my part to vote tonight. I have always been opposed to cloture. Some Senators have been in favor of it. I want the Senator from Oregon to know that I shall remain as long as he wants to stay here, but I would never vote to cut off debate. I have deep affection for my very dis- tinguished friend from Oregon, because we have served together on many com- mittees and we have been together on investigations, Fortunately or unfortu- nately—fortunately, I think; the Sens- tor from Oregon may think it was un- fortunately—the committee reported these nominations to the Senate before the resolution was submitted by the Senator from Oregon and they were re- ported unanimously, after I had talked to the junior Senator from New York Mr. Letrman], the senior Senator from New York {Mr. Ives], the junior Sena- tor from North Dakota (Mr. Youna] and other Senators who represent the States from which the nominees come. We re- ported the nominations in all honesty and in the best interest, as we thought, of the Government. The Senator from Oregon has stated that I said Secretary Snyder said certain things. The Secretary never talked to me about these nominees until a few days ago, when he said the Export-Im- port Bank’s business was being held up. I hope these nominations will be con- firmed. If the Senator from Oregon wants any kind of a session held by the committee, I can assure him he shall have it. But I do not want to get my name tied up with limiting debate on the confirmation of anyone’s nomination to- night. Mr. MORSE. Mr. President, I under- stand, as clearly as I can understand any- thing, that the Senator from South Caro- lina is opposed to limitation of debate. t Mr. MAYBANK. I have never been or it. Mr. MORSE. I think the Senator missed my point. What I have tried to point out thus far in my remarks is that the hearings should have been held in advance of an insistence on voting on