Evening star., 1961-01-17
MCNAMARA


ably would not square with an
1873 law.
He said he had full conf
dence in Mr.. Mcnamara, but
he said the law made no dis
tinction between stock holdings
known to a Government Off
cial and holdings kept secret
from him. Senator Byrd asked
II he would instruct his trustees
to buy stocks only in companies
not doing business with the
Defense Department.
II will be happy to modify
this in any way to achieve the
objective" Mr.. Mcnamara said
He added. however, that the
effect Of such a clause probably
would be to raise the conflict
Of interest Ito q maximum. ~
He pointed out that the
trustees would be forced to
invest in various Government
bonds. The value Of the bonds,
he said, would be influenced
directly by changes In United
States bond interest rates, and
he said that he would partici-
pate as q cabinet member in
administration action to fix
those rates.
Byrd Sympathises
Senator BYRD said he sym
pathized with the problem but
that. in view Of the wording
Of the law, ut would be better
for you and for all Of us
If you asked your trustees not
to invest In such companies. "
1T is not my purpose to be
harsh," Senator Byrd said.
He recalled that the Senate
had required Charles E. Will
son. former president Of Gen.
eral Motors. to sell some $2.5
million Of GIN stock in 1853
before 1t approved his nom
ination to be Secretary Of De-
fense in the Eisenhower ad-
ministration.
Senator Byrd read an opin-
ion from the Congressional
Reference Bureau staff of
lawyers who had examined In
detail the trust Mr.. Mcnamara
had proposed.
These lawyers. Senator Byrd
said. believed that If the
trustees Of the Mcnamara
trust invested in defense stocks
while Mr.. Mcnamara was
Pentagon chief. any resulting
profits would be q violation of
the old law.
The 1873 act prohibits any
Gvernment official or en-
ploye from benefitting from
his acts in the Government
post.
Reports To Be Made
Senator Bridges, Republican
of New Hampshire. asked why
the proposed trust fund was
specified to be revocable by
Mr.. McNamara at any time.
Mr.. McNamara said he could
not foresee possible changes
in circumstances, so he did
not want to tie his hands for
the full length of time he
served as Secretary Of De-
tense. He pointed out, how
ever. that the trustee would
be required to report regularly
to Congress and the public on
any changes in the plan.
III you agree to keep the
committee fully advised" SEN
ator Bridges said. ut certainly
meets my satisfaction"
Approves Full Disclosure
II think I've gone farther
than any person who has ap-
peared before this committee, "
MIR. McNamara told Senator
Byrd. I'm willing to 60 even
farther"
Mr.. Mcnamara suggested
that his lawyers and those of
the Senate or Congress sit
down together and revise his
trust in any way to suit the
committee.
Senator Russell interjected
that the committee had not
yet passed on the necessity
for this.
MIR. Mcnamara said his
financial affairs could be an
open book, available to Con-
gress. the press and the public
He said the Senate COM
mittee was free to make public
any details Of his proposed
trust. including any of his
stockholdings. He said he wa.
even willing to make his in.
come tax returns public.
Mr.. McNamara said he hac
told Mr.. Kennedy he woulC
lcAn,rA "a lAnn a. AZ.