davidaulloa/AmericanStories huggingface dataset:
St. Paul recorder. [volume] (St. Paul, Minn.) 1934-2000, 1961-02-24
Courtesy And The reIephone

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St. Paul recorder. [volume] (St. Paul, Minn.) 1934-2000, 1961-02-24
WATCH
on the
POTOMAC
BY ROBERT O. sPTVAcK

Washington. - is LABOR KENNEDY'S CAPTIVER -
There a story making the rounds that newpapeman
viewed top official of the AFIICIO and asked:
"What is labors program going to be for this yeari
81 don't know" the union official is supposed to have
answered Kennedy hasn't told us yet"
It's probably apochryphal but it may be true
The coseness of the election the recession and the bitter
St. Paul recorder. [volume] (St. Paul, Minn.) 1934-2000, 1961-02-24

ness Oh the E1OuSc LSu1cS \OluihI-
tee fight, as waged by the Repub-
lican r1ght-wing, have made many
labor leaders feel they cannot af-
ford to have stories coming out
that they are throwing their
weight around. Instead they are
being very restrained
The tendency is to defer to the
wishes Of The White House and it
will probably remain that way for
a while unless it turns out that
the President plans to turn his
back on the unions. There Is moth
ing to indicate that he entertains
any such thoughts.
Although Kennedy will maintain
close and friendly relations with
organized labor, there Is little
likelihood that there will be any
thing similar to the Clear it with
Sidney" episode back in Roosevelt's
days.
For those who read this column
and are too young to recall that
affair, Arthur Krock Of The New
York Times printed a report that
FDR had said all major political
decisions were to be cleared with
Sidney Hillman Of the Amalga-
mated Clothing Workers union. 1t
created a furore in business cir
cles.
The key to understanding how
Kennedy views future relations be-
tween labor, business and govern
ment Is to be found, I think, In
the speech he delivered before the
National Conference Board on Feb.
Is.
Basically his attitude towards
business was you need us and we
need you"
The complaint has often been
made in business circles that the
Federal government Is q silent
partner in every corporation, TAX
Evening star., 1961-03-15
Voices Confidence
In Congress Action

I think the more orderly way
to finance medical care for the
aged is through the social Sc
curity system. I am hopeful
that when these matters are
brought to the floor Of the
House and Senate that a ma
jority of the members will sup
port them. I think that a ma
jority of the people will sup
port them.
I know, however, that we
face very vigorous opponents
who are well organized, and
who bring a good deal of pres
sure to bear on this admin
istration and on the Congress
But we are going to continue to
work for these programs, and ]
am very hopeful that before
the year is out they will have
passed.
The members of the commit
tees Of the House and Senate,
I think, have done very well.
am hopeful that an opportunity
will be given each Congress.
man to vote on. these basic
programs this year, and then
the people can make a judg-
ment as to what-how their In
terests are being represented
But I am confident that we are
Evening star., 1961-03-15
Plans No Visit
10 u. NJ. Assembly

@. Mr.. President, will you tel
us, please, If you have any planI
to- appear personally at the
United Nations General Assem-.
bly, currently in session and, il
50. when you might go up?
"A. I have no plans to and J
do mot expect to appear at the
Assembly.
q. Mr.. President, could you
give. us your views, sir, about
the possibility of reaching some
accord with the Soviet Union or
general disarmament as well as
rtuelear test bans, and would
yot1 be willing to meet with Mr.
Khrushchev face to face if you
felt this was necessary to reach
a-truly genuine agreement?
A. Well, as you know, this
matter is now being discussed
at least the procedural matters
leading up to what we hope will
be progress in the area of gen.
erst disarmament. Ut is now
being discussed at the United
Nations, and Ambassador Ste
venson has been discussing
with the State Department the
American position.
We-now that Mr.. Dean has
LETT to resume the discussions
in Geneva, Mr.. McCloy is work.
ing full time on developing an
American position on disarma-
ment. We have indicated be-
fore that we may not have
completed our analysis until
this, summer, and we have sug-
gested that we will be prepared
to resume either the donation
conference or some other SINH
lar Structure, conference struc-
ture, in, we first suggested,
September, and now we have
suggested August at the latest.
So we are going to concentrate
our attention on disarmament
now. We hope progress can be
made, and we will will con-
sider what usefully could be
done to advance progress.
Evening star., 1961-03-15

resident Kennedy: I have
seg&fal announcements to make
1rst, the Secretaries Of the
military departments have beer
instructed by the Deputy Sec
retary Of Defense to take steps
tosprovide q greater percentage
of5defense contracts for small
business. Specifically, the mill
tafy departments have been
asked to set a goal increasing
Individually in fiscal year 1862
small business participation by
10 per cent over the year for
fiscal 1860. Contracts for small
business in fiscal year 1860
amounted to $3,440, ,000, 900, OF
16 per cent. We are going to
Try to increase that by at least
10, per cent.
In addition, we are going to
provide an increase for small
business participation in re-
search and development con-
tracts. During that year this
category of contractin 6
amounted to only $3.50 million
Drs3.4 per cent of the total. In
addition, we are asking the De-
partment of Defense to examine
how additional contracts can
be steered into distressed areas
At the present time we are not
doing as much of that as ]
hope we can in the future.
Evening star., 1961-03-15
Test Ban Talks
Called Hopeful

q. Have you sent Ambassa-
dor Dean back to Geneva with
authority to lower our demand
for inspection sites within the
Soviet Union, to bring it closer
to the Soviet figure?
A. Mr.. Dean goes back to
Geneva with the hope. the ad-
ministration's hope, that it
will be possible for the United
States, the British and the
Russians to come to an agree
ment on nuclear - for a nu-
clear test ban, which would
provide adequate security to
all the countries involved.
Q. Mr.. President, is it a fair
inference from your answer to
Mr.. Knebel's earlier question
that the constitutional issue
aside for the moment, you do
not have a personal opinion
as to whether it would be wise
public policy to expend Fed
eral funds on elementary and
secondary non-public schools?
A. Well, I have in my preyi-
GUS discussions rested on the
constitutional questions.
@. And you do not wish to
speak on the other question?
A. Well, I would have to see
what kind of loans they were,
Mr.. Robinson. AS I said before,
in 1858 I did vote the loans
for education, science and
technology. I voted for that
program. I voted against, as
a Senator, across-the- board
loans.
So that I have looked over
recently the number of pro-
grams which the Federal Gov
ernment has in these areas,
Evening star., 1961-03-15
SHORTER WEEK?
NOT A BAD IDEA
FOR HIMSELF

President Kennedy said
with a rueful smile today
that he would like not to
have to work so many
hours.
But he quickly turred
serious at his press confer
ence and expressed en-
phatic opposition to a
shorter work week..
The President, who nor
mally works 10 hours or
more a day, was asked
what he thought about
some labor unions wanting
a shorter work day or &
four-day week.
He stirred some laughter
when he started his reply
by saying Il prefer it for
myself"
Evening star., 1961-03-15
Asks Funds for
Dam With Canada

Secondly, I am sending to
Congress a request for funds
to resume detailed planning of
our largest remaining damsite
in the upper Columbia Basin,
the Libby Dam in Montana.
It will be the first step in the
development of the Columbia
River basin in coordination
with Canada ON an interna-
tional basis. Yesterday the For
eign Relations Committee re-
ported out unanimously the
treaty that will make this dam
possible. The Libby Dam will
provide the power that we desL
perately need in the Northwest
United States. 1t will help con-
troll the floods that are devas-
tating Northern Idaho. It will
prevent the projected power
shortage for this area.
And the beginning Of this
project will give impetus to a
new period Of cooperation
with Canada.
Next I want to announce
that the Export Import Bank
is authorizing $25 million credit
in favor of the government of
1stael, to purchase agricul-
tura machinery in the United
States, to help consolidate
ISrael's agricultural settle
ments, and electrical power
equipment and construction
items for the expansion of Is
rasli seaports.
This decision, I think, will
help speed the development Of
1sraels economy.
And then lastly, I want to
announce that we will hold a
Presidents conference on heart
disease and cancer, which will
be- held at the White House
beginning April %. The de-
partment of HEW will then in
vite . number of distinguished
medical leaders throughout
the country to participate in
this program.
Thank you.
Evening star., 1961-03-15
President Satisfied
With Acc Role

@. Mr.. President, a study was
made recently by the Michi-
gan Law School that recon-
mended that the regulatory re-
sponsibilities for atomic in
dustry be under an agency
other than that which is re-
sponsible for its development.
The study indicates there is a
dangerous paradox in allowing
both regulation and develop
ment responsibilities to remain
within the Atomic Energy
Commission.
What are your views on
this? This has come up dur
ing your time in Congress, too,
this question of separating
health and regulation from
A. Health and regulation?
@. from development of the
industry, itself.
A. Well, there has been some
separation of the health with
the Public Health having re-
sponsibilities in this area, and
I think that members of the
Atomic Energy Commission
agree that there should be some
external check on their research
and development programs, and
Evening star., 1961-03-15

impacted areas, aid to particu-
lar kinds of colleges. We sent
up a program providing for
actual grants to medical schools
for private colleges, which
could be Sectarian. So that
there is a whole spectrum of
programs, some of which raise
constitutional questions and
some of which do not.
So it is difficult to give an
across the = board answer.
Across-the- board loans-I have
indicated the constitutional
question. which may be socially
desirable, and there may be
other programs which do not
raise a constitutional question
which may be socially un-
desirable.
All I can say is that because
of the complexity of the issue,
it would be better to consider
this as a separate matter, and
when we have an actual bill
before us, this administration
will give its views on both the
constitutional and the socially
desirable elements of the pro-
gram.
Evening star., 1961-03-15
Brandt Praises
Administration,
Ends Visit Here
By the Associated Press

Mayor Willy Brandt of West
Berlin praised what he called
the vitality of the new admin
istration today as he closed
out three days of conferences
here. At National Airport,
where he waited for a plane to
Chicago, Mr.. Brandt told re-
porters:
II was much impressed by
the extremely active atmos-
phere and vitality here, and
leave Washington with in
creased optimism as far ais the
future of Western policy is
concerned"
Mr.. Brandt, Social Demo-
cratic candidate to succeed
Chancellor Adenauer in the
forthcoming German elections,
had a last round of talks last
night. He met with Senators
Sparkman, Democrat Of Ala
bama. and Mccarthy, Demo-
crat Of Minnesota: Edward r.
Murrow, the new director of
the United States Information
Agency: John j. McCloy, Pres
ident Kennedy's adviser on dis
armament, and Assistant Sec
retary Of State for European
Affairs Foy D. Kohler.
Evening star., 1961-03-15

going to get a favorable re-
sponSe.
Q. Mr.. President, sir, what
do you think Of the Air Force
and other branches Of Gov
ernment organizing these side
bar corporations and using
taxpayers money to circum-
vent the Civil Service and pay
large salaries to get scientists
and others? Isn't this sort of
incongruouS with the call for
volunteers for your Peace
Corps?
A. am not-I have been
interested. in-in fact, I think
a subcommittee Of the Con-
gress has been looking into
this matter. One Of the prob
lems,:: of course, is that valu-
able technicians are required
to make a substantial eco-
nomic sacrifice when they
come with the Government.
Therefore, the services, faced
with this problem Of where
these men who are essential
can secure much greater pay
outside the Government than
inside, had to resort to the de-
vices to which you refer, and
we are looking at the matter.
But I would not want to give
an opinion today which would
deny the services these valu-
able scientists: On the other
hand, we want to make sure
that the way the matter is be-
ing conducted is in the public
interest. So we will have to
say, Miss McClendon, that it
requires a further examination
because it is not an easy mat
ter to solve.
I do not think one who has
come to work with the Gov
ernment that I am familiar
with that has not taken-has
not made a financial sacrifice
in doing so. But most Of them
have been willing to meet
that sacrifice. We are going
to examine the particular prob
lem that you have suggested
Evening star., 1961-03-15

I think there is a fair balance
today.
It was a motter which was
discussed when ! was at the
Atomic Energy Commission.
@. Mr.. President, sir, before
your inaugural. you expressed
the hope that you would be able
to use former President Eisen-
hover in some capacity in your
administration. Are you still
of that opinion, sir, and do you
have any plans in that regard?
A. I have no plans at the
present time. I have not been
Il have not discussed the mat
ter with the President, and If
we do have an area where he
could be helpful and where he
felt he could be helpful, then
I would discuss it with him. At
the present time I think he is
still continuing his vacation, to
which he is very much entitled.
@. Mr.. President, Adrian,
Michigan. is deeply concerned
over what disposition the Gov
ernment will make Of the sur
plus Air Force metal extrusion
plant there. Twice, when GSA
has received bids, a firm which
reputedly would dismantle the
plant has been high bidder
while the firm which ultimately
might employ as many as $500
has been second highest.
Appeals for retention of the
plant for the local industry have
been directed to you. Would
you comment on what you have
done or plan to do? ....
A. Well, I have talked to Mr..
Moore about it. / have ex-
pressed my hope that an ar
rangement could be worked out
to transfer the plant so that
employment can be permitted.
One of the problems, of course.
is that it would require the
transfer of the plant at price
which-at least what is now
being examined is whether the
transfer of the plant could be
made at a price which would
be justified. But I quite agree
that if it is possible to use
the plant for employment, it
should be done. I am hopeful,
and I am glad that you re-
minded me of the matter. I am
hopeful that we could perhaps
get a decision out of Mr..
Moore's agency this week, and
I will press for that.
Thank you, Mr.. President.
Evening star., 1961-03-15
Considers Advance
On Highway Funds

%. Mr.. President, in addition
10 the $700-odd million in high
way money that you have in
Btructed the Commerce Depart
ment to make available to the
States ahead Of time, Gov.
Rockefeller has asked whether
II. would be possible for the
States to get an advance on the
money for highways for fiscal
1862. Have you any ideas on
che subject?
A. Yes. I received a letter
from Gov. Rockefeller and we
are considering what action can
be taken. We have to - the
Congress has taken a very clear
position on pay as you 60. and
we have to consider what funds
can be made available between
now and next July, and we have
to- consider what action thu
Congress is going to take or
Evening star., 1961-03-15

what constitutes a reasonable
eXpectable level Of unemploy-
ment. What is. your view on
this matter2 81.
A Well, there has been-I
am not so sure that the con-
troversy is as significant as
perhaps it has been reported in
the paper. Mr.. Martin has
made the point that a good
deal Of structural unemploy-
ment exists and I think we have
to say that in coal, steel, and
perhaps some in aviation, it
does exist, structural unem-
ployment, and it will continue
to be a problem even if you
had a substantial economic re-
covery. 1t would be far less If
you had a substantial economic
recovery. I do not see that
there is a basic clash between
these two views. But I think
that they are both important
and both ought to be 'consid-
cred. In other words, I do
not think that regardless of
whether the unemployment we
now have is structural or not,
and some of it is structural and
some of it is not, I do not
believe we should accept the
present rate Of unemployment
as a percentage that we should
live with. In other words, we
have to reduce that percentage.
I hope that we can reduce 1t
down to 4 per cent, but we are
going to have to reduce it. But
I do agree with Mr.. Martin,
that even as we attempt to
overcome unemployment in this
country. we are faced with a
very serious and important
structural unemployment which
results from chronological
change, which the Canadians
have also, and which even in
good times would cause us Seri-
Gus concern.
In other words, even in East
ern Kentucky, West Virginia.
Southern Illinois and Penn
sylvania, and even in 1859 and
in 1857, you still had serious
pockets of unemployment which
were concentrated, even though
the overall national figure was
rather limited. It is my under
standing that the Joint Com
mittee on the Economic Report
may call back Mr.. Martin and
Mr.. Heller to discuss 1t further,
and I think that would be USE
full. It is a very important
national problem, but I don't
think from my conversations
with both Of them that there is
a serious disagreement between
them.
Evening star., 1961-03-15
ChangeAsked
In Bank Law
BY the Associated Press

President Kennedy has asked
Congress to amend the bank
ing law to let United States
banks pay higher interest rates
to foreign government deposi-
tors than to domestic deposi-
tors. The maximum rates now
are the same. r.
Mr.. Kennedy. who had made
this recommendation in mes
sage to Congress February 6,
yesterday submitted a proposed
bill to carry it out.
He said the proposed amend
ment was but one Of a series
of actions to be taken to allie
viate the drain on this coun-
try's gold supply.
Mr.. Kennedy said that If
commercial banks are per-
mitted to offer foreign govern
mentS higher interest rates,
they will be encouraged to
maintain dollar accounts in this
country.
At present. foreign govern
ments often require the United
States to convert their dollar
accounts to gold for with
drawal.
Only foreign governments
and their agencies can directly
purchase gold from the reserve
stocks Of the United States.
Mr.. Kennedy said interest
rates are only one of the fac
tors that influence a foreign
central bank or government to
prefer dollar accounts to gold.
IF we pursue policies Of sta
bility and growth inspiring
world confidence, foreign gov
ernments should respond to
higher interest rates on time
deposits thereby aiding our
gold outflow problem" he said.
Mr.. Kennedy attached a
memorandum from Treasury
Secretary Dillon. In it, Mr.. Dill
lon said the proposed change
in the Federal. Reserve Act
would enable commercial banks
here to make the fullest COM
petitive effort to attract and
hold dollar accounts
Evening star., 1961-03-15
Pledges Firmness
In Laos Crisis

@. Mr.. President, are you
able at this time to tell us
something of Ambassador
Thompson's report on his
meeting with Premier Khru-
shchev?
A. No, I have no statement
on it at the present time.
@. Mr.. President, Souvanna
Phouma, a representative Of
the Laotian rebels. said after
a visit to the rebel area, that
Moscow had provided 20 times
as many weapons to the pro-
Communist side as we have
provided to the Royal Laotian
government. Can you tell US
whether we are considering q
stepup in such shipments as
part Of a new look at this?
A. Well, we have been watch
ing Laos with the closest at
tention, as I have said, and as
the Secretary has said, and 1t
is our hope that from all of
these negotiations will come a
genuinely independent and
neutral Laos. which is the
master of it's own fate. The
purpose of these discussions
among the various people who
participate in them at Phnom
PENN, is to make this possible.
However, recent attacks by
rebel forces indicate that a
small minority backed by per-
sonnet and supplies from out
side is seeking to prevent the
establishment Of a neutral and
independent country. We are
determined to support the gov
ernment and the people Of
Laos in resisting this attempt.
@. Mr.. President, labor unions
want a shorter work week to
cope with the automation and
the unemployment. Your Sec
retary Of Labor is against that.
Are you for it and II so, would
you prefer a shorter work day
or four-day week? I don't
mean you. yourself, personally.
A. I prefer 1t for myself, but
I would say that I am opposed
to a shorter work week. I am
hopeful that we can have en-
ployment high five days q
week, and 40 hours, which is
traditional in this country, and
which is necessary If we are
going to continue economic
growth, and maintain our CON-
mitments at home and abroad
I would be opposed to any
arbitrary reduction Of the work
week, and I am unhappy when
+ see the work week reduced
Evening star., 1961-03-15

with the Federal Reserve Board
chairman that part of the un-
employment is due to what is
called structural joblessness but
said that much of it is due to
other causes.
Important Problem
II do not think that, regard
less Of whether the unemploy-
ment we now have is structural
or not-and some of it is struc-
tural and some of it is not
the President said, II do not
believe we should accept the
present rate of unemployment
as a percentage that we should
live with"
He said that this was an i'm
portant national problem and
that both Mr.. Martin and Mr.
Heller, whose differences were
expressed at a recent hearing
before the Joint Economic
Committee, may be called back
to discuss the matter in more
detail.
In his discussion of more de-
fense contracts for small busi-
ness. the President said he was
asking the Defense Department
to examine how additional de-
tense contracts can be steered
into distressed areas. "At the
present time" he added, I'VE
are not doing as much of that
as I hope we can in the future"
Cites Dam Project
The President called the re-
quest for funds for a new dam
in the Upper Columbia Basin
"the first step" in developing
the basin In co-opefation with
Canada on an international
basis. The Senate Foreign Re-
lations Committee yesterday
approved a treaty that will
make this dam possible, the
President pointed out, and
added:
"The Libby Dam will provide
the power that we desperately
need in the Northwest United
States. 1t will help control the
floods that are devastating
northern Idaho and the
beginning of this project will
give impetus to a new period Of
cooperation with Canada"