14058 CONGRESSIONAL .RECORD- HOUSE July 18

for printing and reference to the proper calendar. as follows:

Mr. LANE: Committee on the Judiciary. s. 2.572. An act. tor the relief of the 1\lerritt­Chapma.n & Scott Corp.; without amend­ment (&ept. No. 1998). Referred to the Committee of the Whole House.

Mr. LINDSAY: Committee on the Judi­ciary. H.R. 11334. A bill for the relief of Mary J. Papwroth; with amendment (Rept. No. 1999). Referred to the Committee of the Whole House.

Mr. LINDSAY: Committee on the Judi­ciary. H.R. 10604. A bill for the relief of

. Mr. and Mrs. Gordon C. Bryant; with amend­ment (Rept. No. 2000). Referred to the Committee of the Whole House.

PUBLIC BILLS AND RESOLUTIONS

Under clause 4 of rule XXII, public bills and resolutions were introduced and severally referred as follows:

l3yMr. JAMES C. DAVIS: H.R. 12588. A bill to increase from $000 to

$1,000 the personal Income tax exemptions of a taxpayer (Including the exemption for a spouse, the exemption for a dependent, and the additional exemptions for old age and blindness); to the Committee on Ways and Means.

By Mr. ABERNETHY: H.R.12589. A bill to amend the Smith­

Lever Act of May 8, 1914, as amended; to the Committee on Agriculture.

By Mr. CASEY: H.R. 12590. A bill to provide for the con­

veyance of a certain tract of land in Hous­ton. Harris County, Tex., to the State of Texas; to the Committee on Armed Services.

By Mr. FARBSTEIN; H.R. 12591. A bill to amend the :Bank­

ruptcy Act to increase the amount of wages entitled to priority to $2,000, to provide that pension, welfare, and other fringe benefits shall be treated as wages. and to Increase the priority period from a months to 12 months with respect to certain wage compo­nents; to the Committee on the Judiciary.

By Mr. JENSEN; H.R. 12592. A bill to provide for the de­

velopment of oxbow; ~and other facili­ties along the Missouri River between Sioux City. Iowa. and Omaha. Nebr .• for public recreation. for fish an~ wildlife conservation, and :!or other purposes; to the Committee on .Public Works.

By Mr. MASON: H.R. 12593. A bill to amend the Internal

.Revenue Code of 1954 to insure that the communications taxes will not apply to cer­tain private ~unications services fur­nished to common carriers; to the Com­mittee on Ways and Means.

By Mr. O'HARA of Michigan: H.R. 12594. A bill to amend the Agricul­

tural .Adjustment Act of 1938 to permit in­·creased. production of types or varieties of wheat which are tn short supply; to the Committee on Agriculture.

By :Mr. O'KONSKI: H.R. 12595. A bill to amend chapter 55 of

title 10, United States Code, to provide ma­ternity benefits !or spouses of persons called to active duty on or after August 1, 1961, after the termination of their active duty, and for other purposes; to the Committee on Armed Services.

H .R.12596. A bill to amend section 521 of tJ.tle 38, United States Code, to provide for the payment of pension to veterans of World war I who have 70 or more, but less than 90, days of service; to the Commlttee on Vet­erans' Affairs.

By Mr. BARRY: H .R. 12597. A bill to make the Civil Rights

Commission a permanent agency; to the Committee on the Judiciary.

By Mr. BURKE of Massachusetts: H.R. 12598. A bill to amend the Tartif Act

of 1930; to the Committee on Ways and Means.

By Mr. LIBONATI: H.R.12599. A bill to amend the Internal

Revenue Codes of 1954: and 1939 to provide for the elimination of certain tax inequities through the permissive taxatJ.on of certain. jointly owned railroad terminal and switch­ing facillty oorpora.tJ.ons as partnerships; to the Committee on Ways and Means.

By Mr. RIVERS of South Carolina: H.R. 12600. A bill to amend the Railway

Labor Act so as to authorize the President to establish boards to resolve Jurisdictional disputes in the air tra.ruwortation industry, and for other purposes; to the Committee on Interstate and Foreign Commerce.

l3y Mr. DINGELL: H .R. 12601. A bill to provide for a com­

prehensive, long range and coordinated na­tional program in oceanography. and for other purposes; to the Committee on Mer-chant Marine and Fisheries. -

By Mr. O'BRIEN of New York: H.R.12602. A bill to authorize reimburse­

ment for certain moving expenses and prop­erty losses to any person who is compelled to relocate his home or business because of the acquisition of property by the United States; to the Committee on Public Works.

By Mr. PHILBIN: H.R. 12603. A bill to make retrocession to

the Commonwealth of Massachusetts of ju­risdiction over certain land in the vicinity of Fort Devens, Mass.; to the Committee on Armed Services.

l3y Mr. GLENN: H .R.12604:. A blll to provide for the con­

struction of a new Veterans• AdmlnistratJ.on

hospi_tal in SO\,lthern New Jersey; to the Com­mittee on Veterans• AJrairs.

By Mr. PUCINSKI; H.R. 12605. A bill to amend section 601

of t~e Federal Aviation Act to require ldenti-1lcati.on markings on the underside of the wings of certain aircraft; to the Committee on Interstate and Foreign Commerce.

By Mr. KEARNS: H.J. Res. 826. Joint resolution to amend

the act of April 29, 1942. establishing the District of Columbia Recreation Board, to provide for the restoration and use of the Belasco Theater on Lafayette Square in the Nation's Capital as a municipal theater· as proposed by President Kennedy in 1960, to provide that su-ch theater shall be used solely as a children's .theater and art center so as to provide cultural fare superior to many of the movies and television programs seen by millions of children today. Jlnd to provide that such theater shall be known as the Caroline Kennedy Children's Theater and Art Center; to the Committee on the District of Columbia.

By Mr. SCHWENGEL: H. Con. Res. 503. Concurrent resolution to

authorize the printing as a House document the report of the Joint Committee on Ar­rangements to Commemorate the lOOth An­niversary of the First Inaugural of Abraham Lincoln; to the COmmittee on House Admin­istration.

By Mr. COOLEY: -H.. Res. 728. Resolution to provide funds

for the further expenses of studies and in­vestigations authorized by House Resolution 86; to the COmmittee on House Administra­tion.

PRIVATE BILLS AND RESOLUTIONS

Under clause 1 of rule XXII, private bills and resolutions were introduced and severally referred a.c:; follows:

l3y Mr. BAKER: H.R.. 12606. A bill for the relief of Claude

S • .Reeder and Reeder Motor Co., Inc.; to the Committee on the Judiciary.

By Mr. HAGAN of Georgia: H.R. 12607. A bill for the relief of Dr.

Cheng-Tsuau Su and Angela Su; to the Com­mittee on the Judiciary.

By Mr. HEALEY: H.R. 12608. A bill :!or the relief of Abraham

Hershler and his brother, Zvi Hershler; to the Committee on the Judiciary.

By Mr. LINDSAY: H.R. 12609. A bill for the relief of Elisa­

betha Kabsch; to the Committee on the Judiciary.

By Mr. WILSON of Cs.Ufomla: H .R. 12610. A bill for tlle relief of Shoko

Ara.1 Thomas; to the Committee on the Judiciary.

EXTENSIONS OF REMARKS

Foreign language~ and Federal Aid to Edacation

EXTENSION OF REMARKS OF

HON. JOHN BRADEMAS .oF INDIANA

IN THE HOUSE OF REPRESENTATIVES

Wednesday, July 18, 1962 Mr. BRADEMAS. Mr. Speaker. un­

der unanimous consent, I should like to include in the CONGRESSIONAL REOOltD the text of an article entitled .. Foreign Languages and Federal Aid . to Educa-

tion," which was published in the May 1962 issue of Publications of the Modern Language Association of America.

The article is "based on an address which I was Privileged ro deliver on De­cember 29, 1961, at the annual meeting of the Modern Language Association of America in Chicago,. m

The text of the article follows: PolmiGN l.ANGuACD:s AND FEDERAL AID TO

EDucATION

(By JoHN l3B.ADEMAS, Congressn:tan from Indiana)

In the last several years,. 1n large pal't be­cause of the leadership ot the Kodern Language Association. the ~erican people

have come to understand more clearly than ever before the great importance to our country, in terms of national security If for no other reason, and there are other reasons, of developing and maintaining a reservoir of persons skllled in the knowledge of modern foreign languages. Even a man of little political sensitivity could not fail; a few days ago, to have appreciated the immense impact of the few words spoken in Spanish by Mrs. Kennedy during the President's visit to Latin America. · ·

I think. Mr. Chairman, that you and the members of the association may be inter­ested to know the resUlts of a short survey that I arranged a tew months ago to deter­mine the ~owledge of foreign languages of Members of the Congress of the United

\.

1962 CONGRESSIONAL RECORD- HOUSE 14059 States. Although a substantial number of Members of the House and Senate . who responded said they had no foreign language ability at all, a sizable number .of my col­leagues indicated that they had· at least some capacity to speak or understand at least 1 of 28 different foreign languages. Their knowledge ranged from French and Spanish and German at one end of the scale, quite understandably, through a variety of languages including Polish, Russian, Italian, Swedish, Norwegian, Chinese, Croatian, Yid­dish, Hungarian, Hindustani, and · Sioux Indian at the other.

It is not primarily about languages, how­ever, that I wish to speak to you this after­noon, but about higher education generally, and in particular about the relationship be­tween the Federal Government and higher education. Although, as your chairman has indicated, I am a politician, I come to you as a friend. A frustrated Hispanist, and former college teacher, I now serve, as he has also indicated, on the House Education and Labor Committee and on two of the standing sub­committees of the three that deal with education. At the present time I am also serving as chairman of the Advisory Group on Higher Education, the purpose of which is to provide by the end of January specific

, legislative recommendations on what Con­gress ought to be doing in the next session in the field of assistance to colleges and uni­versities in the United States. Moreover, during the past year it has been my good fortune to have visited several universities abroad-four in Argentina, two in England, six institutions of higher learning in the Soviet Union, as well as a number of colleges and universities here in our own country. What I should like to do this afternoon is discuss with you something of what I've learned froin these experiences of · the last year and then to ·make bold as a .politician to offer to you· as professors some ad­monitions for the coming year. ·

My thesis is a simple one and i~ is this: In a world more troubled than man has ever

- known, and with the United States more burdened with responsibility for leadership than ever before, the American university community, indeed the American educa­tional community generally, has a crucial . contribution to mak~ in supplying that leadership, and the university community is not now doing enough. I do not for a II10-ment suggest that our failure to do an ade­quate job of what S~nator JosEPH CLARK, of Pennsylvania, has called in a very arrest­ing phrase "the staffing of freedo.m" is pri­marily to be charged, or entirely to be .charged, against the university cQmmunity. Clearly this is not the case. But some of the fault does lie there. Particularly, my fellow humanists, it lies with you .rather than with the natural scientists.

SOVIET CHALLENGE IN EDUCATION First of all, let me tell you something of

what I learned during my visit to the Soviet Union a few weeks ago. I went · with other members of the House Education and Labor Committee to · get some firsthand picture of what the Russians are doing in their school systems. We visited Moscow, Kiev, and Leningrad, and in those great cities visited elementary and secondary schools, technical institutes and universities. We talked with principals and students, with rectors and ministers of education. I have no time here to detail for your our experience in that remarkable land. But I can give you these major conclusions from our visit. First, the Soviets are deeply committed to education. Both teachers and students take education very seriously indeed, and they are working hard at it. They mean business, and they take education seriously, I think, for two reasons. First, in a society where there is essentially no private property, the way to get ahead in terms of status and

prestige and power and infiuence is, with the single exception of activity in the Commu­nist Party, education. And, second, the Soviets regard education as the key to the economic, industrial, scientific, and military development of their country.

I said they worked hard. We visited, as I think you in this group will be particularly interested to know, 1 of 14 experimental language schools in the city of Leningrad. This school taught English. Chinese, French, German, or Hindustani are taught in f0ur other schools, and in the rest one can lea.rn English. One begins at the second grade and continues the course through 10 or 11 grades. I was mightily impressed by the high caliber of the students in this school, by the dedica­tion and devotion of the teachers.

A second ma1or impression that I brought from the Soviet Union is this, that although the Soviets are behind us today in many ways in the field of education, their totali­tarian system gives them the capacity to train the kind of manpower, the collective farmers, the lathe eyerators, the nuclear physicists, the teachers, the engineers that their state planner believe are essential to building up the power of the Soviet state. I visited, for example, the Leningrad Peda­gogical Institute in Moscow, where the di­rector told me with great pride that the 7-year plan called for him to admit to his institution, •that year, 1;500 freshmen who were later to become teachers. He said, using Marxist jargon, "We overfulfilled our plan. We admitted 1,550." At the Alexan­der Herzen Pedagogical Institute in Lenin­grad I was told by the director that after the students have graduated and are able to teach, if they are not required in Leningrad br in Kiev, in Moscow or in the big cities where ,most Soviet young people would pre­fer to stay, they are sent .off to Tashkent in Central Asia, or to other parts of the coun­try which are not so pleasant. This ,totali­tarian system, therefore, gives the Soviets a kind of advantage in directing the flow of national investment in education over us which, of course, we do not wish to match but which, nonetheless, poses a most serious challenge to us.

Third, the emphasis in the Soviet Union on education for science and technology, with its dramatic .results in increased indus­trial and military strength, ~s. I tnink, com­pelling evidence of the ruthless Soviet con­centration on building up national power.

The question we must .ask then, in as­sessing the Soviet educational system, is not whether the Soviets are ahead of tis today economically and scientifically but, rather, will their totalitarian system enable them to pull ahead of us 5 or 10 or 20 years from now?

Three or four weeks ago the Engineering Manpower Commission in the United States published a report which said that at the present time the Soviets are outproducing us in the field of engineers at the rate of 3 to 1. I think many of you in this room will be interested to see the National Science Foundation publication that will be com­ing out some time next month by Prof. Nicholas DeWitt of the Russian Research Center at Harvard, in which he is going to delineate with careful statistics the situation with respect to Soviet manpower and edu­cation at the present time.

This Soviet challenge in science and tech­nical education is one of the major reasons that the chairman of the House Education and Labor Committee in September named the bipartisan Advisory Group on Higher Education, to which I referred a minute ago, the purpose of which is to develop specific recommendations for what the Fed­eral Government ought to be doing in the way of assisting the colleges and univer­sities of our country. During the last sev­eral. weeks we have been meeting, as members of this group, with outstanding

scientists and educators from throughout the country to get their off-the-record views on what we should do. And I hope very much that Congress will act on legislation for Federal assistance to strengthen colleges and universities this coming year. If we are going to "staff freedom effectively" in the United States, we must invest far more in higher education than we- have in the past.

·EDUCATION AND FOREIGN POLICY Not only is it essential, however, that we

invest more nationally in our colleges and universities in the United States, but our commitments elsewhere in the world mean, in my judgment, that we must also give far greater attention than we have heretofore to the role of education in our foreign policy. Let me give you a specific example from some personal experience. I want to offer to you the proposition that the universities of Latin America have a ·crucial contribution to make to the development of strong and viable democracies in the nations to the south of us. With his concept of a grand Alliance for Progress, President Kennedy has, in effect, rediscovered Latin America. We have J>een awakened to a new consciousness in our country today of the importance to us of what happens in Latin America. And. as a result of this awakening, we have, as citizens of this country, committed ourselves to help­ing in the urgent task of building democratic societies in our own heii1isphere.

VIS'IT TO ARGENTINA Last spring, with · Congressman RoBERT

GIAIMO, of New Haven, Conn., I visited one of the largest and most powerful countries of Latin America, Argentina. While in Ar­gentina I talked with the rectors of several universities, with student leaders, with pro-· fessors, with Argentine newspapermen, and · television and radio reporters, with the country's only Nobel prize winner, as well as with the Mi;nister of Education and with President Frondizi of .Argentina himself. You aU .know the importance of our diplo:. matic representatives abroad being equipped with the languages of the countries to which they are assigned. I can only say that the fact that my colleague, Congressman GIAMo, speaks Italian and that I can defend myself in Spanish ~eant· that we were able to have far more candid conversations in Argen­tina than would certainly have been the case otherwise. This visit to Argentina per­suaded us that the universities of Latin America are an indispensable key to the eco­nomic development and the social reform which these nations must have if they are to ·create d~mocratic societies and free political .institutions that will endure. / The universities .of Latin America are going ;to have to produce the engineers, the agricul­tural specialists, and the technicians' required to fight hunger, poverty, and disease and to _move these countries in our own hemisphere onto the stage of the 20th century. Other­wise, · you and I c~n expect to see the spread of Castro-like movements throughout Latin America. ·

SHORTAGES IN LATIN AMERICA As President Kennedy said in his great

Alliance. fol' Progress speech of last March, "We must .rapidly expand the training of those needed to man the economies of rap­idly developing countries. This means ex­panded universities, graduate schools, and research institutes;" . Latin America must .have not only 'investment capital in the form of physical resources if it is to move ahead in rapid economic and technical growth, ·but it also needs highly trained and highly sldlled human beings, too few of which it now has. The University of Buenos Aires, for example, the largest university in a land famed for its, production of beef, seems far behind us in modern techniques of animal

14060 · CONGRESSIONAL RECORD- HOUSE July 18 husba,.ndry. A recent census . at -the Univer-. sity of Buenos Aires, which has from 55,000 to 60,000 students, showed that nearly 20 percent were studying law, while only 2 percent were in the fields of agronomy and veterinary medicine. And the Latins, even the Argentines, are not that much more a litigious people than we are. There are, however, historical reasons for so many law students· in Latin American universities. I have no time now to go into the reasons, well known to many of you in this room. The. fact remains that Latin America faces not a grave shortage of lawyers but of people trained in what I would call the strategic fields, those fields that lead to rapid eco­nomic and social progress.

EDUCATION AND ALLIANCE FOR PROGRESS

Now what can we in the United ·states do tO help fill this technical gap and put some flesh on the bones of the· Ailiance for Progress? First of all, I would argue tliat in the shaping of our Alliance program_s we must give a ,high priority to ~id to higher education in Latin America. And in par­ticular we should strerig~hen what I have just called :the strategic fields, agronomy, engineering, econo:q1ics, the natural sciences, and public administration. This does not mean that we should oppose the develop­ment of the humanities in Latin America, but our resources in the United States are limited. We should, in my judgment, in­vest those resources where the dividends make the maximum contribution to our national policy goals. The goals are to develop strong economies and strong democ­racies in these lands. In the long run, after all, only the universities of Latin America are going to be able themselves to train the people that their countries require. We can­not do that job for them. But we can help them get started and we can help them get startEld now. Let me make just one sug­gestion, which I think is particularly relevant for those of you· who teacl;l modern foreign languages. I offer this suggestion on the basis of my experience in Apgentina, and offer it because of what appears to me to be one of the major shortcomings of Latin American universiites. I refer, of course, to the lack of full-time professors. The sug­gestion is simply this : That we send more of our top professors from the United States to Latin American universities.

I do not oppose bringing Latin American undergraduates to this country, but I am frank to say that if there is a choice, the priority should certainly go to sending more of our professors to strengthen existing uni­versities in those countries in order to build up strong departments there. Specifically, I would urge the establishment of a new system of exchange chairs or professorships between the United States and Latin Amer­ica. · In Latin America, · in each country where such a chair would be set up, lt could be known as the Franklin D. Roose­velt Chair of American Studies, or the Abraham Lincoln Chair, or ·the George Washington Chair, or the Thomas Jefferson Chair. Indeed, if you'll go along with a John F. Kennedy Chair, 'I'd be glad to ac­cept a Dwight D. Eisenhower Chair. Such a chair might be established in each of half a dozen of the major- universities in Latin America and an outstanding professor from the United States be named to fill it for 1 year. In return, there should be established in the United States an equivalent number of chairs of Latin American studies, each named after a leading Latin American hero, such as a Benito Juarez Chair, a Simon Bo-

. li var Chair, a Bernardo O'Higgins Chair, or because this year is the 150th anniversary of his birth in Argentina, a Domingo Faustino Sarmiento Chair. These chairs should not all go to the major American universities; they should go to some of our excellent smaller universities as welL The establish­ment of these chairs would be mutually

helpful · and . would also dramatize the im­portance of professorships. By requiring that the Latins · send us some of their out­standing scholars, we would make clear our own desire to learn from them. And I would add that these chairs might well be financed, not by U.S. Government funds, but either through university to university arrange­ments or financing by American private business firms. This is just one suggestion that I would presume to offer as we try to

·help the Latin Americans .train people in · the skills and talents essential if they are going to have a chance to make democracy work.

PROFESSORS AND PUBLIC POLICY

Now I have discussed briefly ,with you some facets of higher education in three _parts of the world, in the Soviet Union, in the United States, and in Latin America. I speak to you as a politician with 'responsibility to help' frame legislative policies that are in some measure related to all three of these areas. You may appropriately ask, "What does all this have to do with us ln the edu­cational community, in the university com­munity especiall~ , and even more particu­larly what does all this have to do with us in the field of the humanities?" And to this question I make the following answer: American university teachers know far too little about politics and particularly about governmental policies affecting higher edu­cation. Members of the American university community, especially in the humanities, have far too little understanding of the na­ture of the political process, less of the re­lationship of the Federal Governme-nt to higher education, and, I fear, care not very much about their ignorance on either count. The natural scientists, I might interject, do know their way around in the world of gov­ernment and politics, and they have learned that Emerson's famous dictum, "in the right state the scholar is man thinking," may be too limited a view of the scholar's role in the world of the 20th century. All of you are · familiar with C. P. Snow's warning of the immense gulf that divides the natural scien­tists from the humanists or from what Snow, who is himself a dweller in both realms, calls the literary intellectuals, which means you. To Snow's argument I would add at least two corollaries: first, that we politicians do not know enough about modern science; and second, that those of you who teach . arts and letters in American -universities do not know enough about either science or politics. It is this ignorance of politics on the part of the university. community that concerns me chiefly here this afternoon.

Professors should pay increased attention · to gov~rnmental policies affecting higher education for two principal reasons. First, our universities today are being urged to supply more trained leadership thap. ever be­fore in the history of this Republic to meet our national needs both at home and abroad. The Communist world is ranged against us scientifically and economically, as well as mmtarily, and we need all the 'brainpower we can get for national survival. Indeed, it was primarily because of th_e widespread public acceptance of this fact that Congress passed 3 years ago the National Defense Edu­cation Act. Now I know that many of you in this room may be very unhappy about what you feel to be the Federal Government's overemphasis on assisting science and tecll­nical education .and not doing :more for the humanities. Let me, however; respectfully suggest that such an attitude may be due to a failure on your part to appreciate that there are necessary limitations on the Gov­ernment's interest in supporting programs in the fie~d of education. For example, the fact that the Federal Government seeks to encourage ~he training of. more language teachers rather than more language scholars does not mean that scholars are not impor­tant. What it does mean is that the Federal

·Government; ·with· limited resources, and priorities defined in terms of national policy, must limit its assistance to teachers. Earlier this year, when considering revision of the National Defense Education Act, a distin­guished classical scholar appeared before our subcommittee. He did so to urge the in­clusion of Latin and Greek in the language section of the National Defense Education

·Act. I advised this distinguished classicist that one of the Congressmen listening to his testimony was of Italian origin and that another, ·which ·wa,s I, was of Greek ·origin. · I added . that both of us, nonethe­less, had .misgivings about his proposal. For the issue was not whether· the improved teaching of Latin or Greek was advisable. Clearly it is advisable and is a self-evident case. The· issue, however, with which we as legislators are faced, is whether the inclusion of Latin and Greek under the National De­fense Education Act would make any signifi­cant contribution to strengthening the teaching of modern languages as a contribu­tion to our national defense, the purpose of the law.

I think that you humanists will be glad to know that the issue of the relative emphasis to be placed on assistance to the humanities and to science is a continuing preoccupation of members of the House Education and Labor Committee. This is something we wrangle about all the time, even as all of you do. I also think it fair to say, and hope it will not .be taken in a partisan vein, that President and Mrs. Kennedy have done more to invigorate national interest in the fine arts and in the humanities in our country than any occupants of the Wh~te House in a long, long time.

UNIVERSITIES' COOPERATION NEEDED

Now there. is a second and final reason _that I think you should become more con­cerned with politics and public policy. It is this. Enrollments in American colleges and universities in tp.e next decade will sky­rocket. And there is little question that the universities will require more support from Federal funds, as well as from State and private sources, if they are going to meet the impact of these increased enrollments. The. university community, and the educa­tion community generally, therefore, have a direct stake in the kind of programs that the Government develops. You, therefore, should not hesitate to make your voices heard in Washington. Because if you fail to, someone else will. Politics, like nature, abhors a vacuum. And your voices have not been loud. Your voices have not -been clear on many matters directly affecting higher education. Let me give you one example. I refer to the issue of the affidavit of dis­claimer in the National Defense ·Education Act. I · am not talking about the loyalty oath. I am talking about the affidavit of disclaimer. And I am not even talking about which side · of the issue you happen to be on. I serve on the committee that deals with this issue and I have several colleges and universities in my district, yet in my first 2¥2 years in Congress I did not receive six letters on this subject-not six letters. Now if it be said by you in response that we in Congress should act, let's say, to re­peal the affidavit of disclaimer, self-generated by principle, then I would respectfully re­spond that Members of Congress have more principles to champion than we have time for now. If the gro-ups most directly touched by given issues do not themselves trouble to make their views known in Washington, is it not reasonable for us to assume that they really care little about them? Even in the field of higher education Congress must take into consideration a broad spectrum of what we would call political issues. The affidavit of disclaimer raises some; civil rights, reli­gion, loans and grants, aid -to public. or p-ri­vate institutions-these are all issues that will affect· final 'legislation. So I urge you

eO-NGJrnSSIONAL . RECORD- HOUSE 14061 not to be shy. Look at the- land gr$D.t uni­versities. 'They .:nave tor ~ny. years . c~ operated. very effectively with their Stat~ legislatures 1D. ·the 15haping of· education pol­Icy. The university community ln our coun­try must now help. the Fede.ral Government shape the Federal contribution to the_~er­lcan university. MODHN LANGUAGE ASSOCIATION'S CONTRIBUTIOB

Now I want to say very happl1y that the Modern Langu~ge Association is an outstand­ing exception to this self-imposed isolatio~ of universi~y people from making known to govertu:nent their concern for programs in the field of education. The spadework that was done during tbe mid-1950's by the. for­eign language progra~ of the Modern Lan­guage -Association under . the imaginative leadership of your former executive secretary, :Wllliaril Riley Parker, who, by the way, has had the good_)udgment to become a Hoosier, played a key role in the succe:;s of tbe for­eign language programs developed under the National Defense Education Act. Kenneth Mllclenberger continues to do all of ' you of the Modern Language Association proud by his outst~ding contribution to the modern foreign language programs in the U.s. Oftl.ce of Education. And I would a.dd further that the testimony this year before the special Education Subcommittee of . the House of Dr. Stone, and Dr, Walsh, and Dr. Ferguson, all of the Modern Language Association, was Without question among the most valuable and inte111gent that we on that committee have heard. There is no question then. that in helping shape the National Defense Edu­cation Act language programs the Modern Language Association has played a ma]or part in stimulating a rebirth of interest . in language studies in the United States.

Let me conclude by reiterating first that higher education is increasingly significant within our own country and in our foreign policy, both because of our own national needs here at home and because of the con­tinuing challenge of the Communist world. Second, let me reiterate that the .Federal Government will necessarily, in the years ahead, make a greater contribution to higher education. Finally, let me repeat that you of the university community must, for these reasons, do -much more than you have in the past to make your voices heard in Wash­ington in determining this policy. I once had a tutor at Harvard College who was the same man wlio tutored an undergraduate named John F. Kennedy. And I recall very vividly how this pro~essor once startled a class on .-opening day by announcing, "First of all, I ha.d better tell you what I believe. I believe in three things: sweet reason, htgh morality, and plenty of horsepower." If we in the United States are going to maintain b. free and humane society, we need all three--sweet reason, high morality, and plenty of horsepower. And you in the uni­versities must be largely responsible for sup­plying all three. Thank you very much.

What Happened in Latvia

EXTENSION OF REMARKS OF

HON. RALPH F •. BEERMANN OF NEBRASKA

IN THE HOUSE OF REPRE~ENTATIVES

Wednesday,. July 18, 1962 . Mr. BEERMANN. Mr. Speaker, many

of my colleagu~s have taken the oppor- . tunity this week of introducing remarks into the R~coRD concerning Captive Na­tions Week . . The remarks have-been ex­cellent .but iD. most cases rather gener&l-

ized. in nature so· I .am in mind to present 'the case of one country in detail so that perhaps those who read the RECORD p:tight be just a little better .informed. TP,e ·country I have. selected. is Latvia, a country that first won its independence in the First World War.

Today. there are barely 2 million . Lat~ vians in the Latvian Soviet Socialist Re­public. Their neighbors, the EstonianS and Lithuanians, are considerablY larger ,Peoples. Yet the Latvians are one of the main racial groups of the Baltic area. with a national history which can be traced back to the 13th century, when the Latvian people embraced Christian­ity. During the middle ages Latvia was first a principality of the Holy .Roman Empire. Then it was taken over by the Teutonic knights., under whose rule the Latvians lived for· two centuries. Al­though tbeir fate was in the hands of German merchants and traders, the Latvian community enjoyed an era of great prosperity during this period. It was at this time that the city of Riga became a leading Baltic port.

When the Teutonic knights were de­feated by the Poles in the middle of the 16th century, the Latvians once again accustomed themselves to a new · set of foreign rulers. But the Poles were driven .out of Latvia early in the 1 '7th century "by the Swedes, and for 100 years the Latvians lived under Swedish rule. Dur­ing this period they enjoyed the greatest freedom and prosperity of their history. The peasants regained their lands and their freedom, and trade relations were established with France, England, and other western nations. The 17th cen­tury is .often described as the "golden age" of Latvian history. Latvian na­tionalism can be traced back 'to thiS pe­riod, and it was also an age of great cUl­tural and intellectual development.

But the era of freedom, national unity, and cultural growth was not destined to last. Polish, Russian, and Swedish troops pillaged the country during the great Northern War of 1700-21. In 1'721 Latvia was divided between Poland and Russia, just as so many other countries . before and since that time have been .conquered by larger neighbors. Russia seized a substantial part of Poland when that country lost its independence in 1795. As a result of this expansion Rus­sia acquired that part of Latvia which was not already under her control. For the next century and a quarter-from 1795 to 1918-Latvians suffered under Russian rule, which they had not desired and which they found almost unbearable. Yet they kept alive their historic tra­ditions of freedom and independence. The Latvian language, culture, and na­tional ideals were passed secretly from family to family, and from father to son. Each time there was a slight relaxation of the czarist rule, Latvians made the most of it. As early as 1822, for exat:nPle, they were allowed to hiwe their own Latvian-language newspapers. Later they were pen;nitted to set up Latvian schools. Thus the Latvian intellectual traditions were maintained intact and passed on fr_om one generation to the next. Yet this partial success in main­taining their identity, as a people was no

substitute for . national independence, and Latvians dreamed of the daY when they . could ·set up an independent country. .

As the First World·War·drew to a close~ the czarist regime ·in Riissia collapsed, and Latvians saw a golden opportunity to regain their national freedom. Dur­ing the war various gr,oups had been set up to further the cause of Latvian free­dom and national independence. Among these groups was the Provisional National Council, whieh in October 1918 merged with the democratic bloc to as­sure the establishment-of a government for Latvia. On November 11, - Great Britain recognized this governing body as the proper government of Latvia. A few daJ':s later the Council proclaimed the independence of Latvia, and the cherished dreams of many centuries be- · came reality.

During the next two decades the free­dom-loving Latvian people worked hard, and despite innumerable handicaps managed to make their country a pros­perous and progressive democracy. The country was industrialized and the peas­antry was allotted .su11icient land to carry on with the ancient and honorable life of providing the people with food. Latvians traded with the Soviet Union and the Western World. Yet even as they were immersed in the task of re­building their beloved homeland, they . were constantly haunted by the danger of Russian commupism.

In 1939 these fears proved justified. Latvia, Lithuania, and Estonia were in­cluded in the so-called .zone of infiuence acquired by the Russians through the treaty signed by Hitler and Stalin in 1939. After the agr~mep.t with Hitler, Russia demanded bases in all three Bal­tic Republics. The Latvians were forced to sign a mutual assistance pact with the Soviet Union, which for all practical pur­poses .signed away their freedom and in­dependence. Latvia fell temporarily un­der German control, but was recovered by the Russians and fully incorporated into the Soviet Union. The happy days of the interwar period were gone and the Latvians fell once more under the rule of forei~ers. .

In recent years the Soviet Union has promoted the industrialization of this former dairyland, and a substantial number of Russian factory workers set­tled in Latvia for this purpose. There are now ,500,000 Russians in the coun­try-26 percent of the total population. while before the war only 6 percent of the population was Russian ..

Latvia has opened up to a certain ex­tent since the death of stalin.' The Bal­tic Republics of the Soviet Union are run with less interference from Moscow than is the case in the other non-Russian re­publics. Many functions of the all-union ministries in ·Moscow were transferred . to the constituent republics after St.alin's death, - and the state administration of the Latvian· Republic was reorganized and partly decentralized, Many Rus­sianS were replaced by local Communists in the administrative work by the Lat­vian Communist Party and the Govern­ment. The Latvian Regional Economic Council also enjoys· .considerable auton­omy from . Mosc;ow, -as well. as ~ 'hirge

14062 ,CONGRESSIONAL .RECORD- HOUSE July ·18

amount of financial aid . . The National Republics were granted their national fiags-which to be sure differ only slight­ly from each other-and their national anthems-which contain sirhilar lines about the leading role of the great Rus­sian people in the happy family of the Soviet peoples. Ligo Day, a national holiday which had been condemned for a number of years as "an expression of bourgeois nationalism," could once more be celebrated. And in 1955 the city of Riga was opened to foreign visitors, well ahead of the capitals of Estonia and Lithuania.

Even . during these years the Russian presence was a source of continuous irritation to the Latvians, who have not forgotten their traditions as an inde­pendent people. But for a time disagree­ment could be expressed openly, even inside the Communist Party. Latvian publications refiected nationalism, de­mands for greater respect for the indi­vidual, doubts about the official ideology, mistrust of the Communist leadership, and political indifference. The younger generation made use of the opportuni- · ties for freer action to criticize authori­ties.

But in Latvia, as elsewhere in the Soviet Empire, the new-found freedoms were not destined to last. Khrushchev visited Riga in June 1959, harshly criticizing "various administrative short­comings,'' and immediately thereafter large-scale shakeups were ordered in the Latvian Communist Party, the trade unions, the Latvian Communist Youth · League, as well as in literature and the arts. The so-called national Commu­nists were dismissed. A deputy premier was removed from office for what was called "economic nationalistic 'bias." Pravda charged the Central Committee of the Latvian Communist Party with neglecting the interests of the Soviet state "in favor of narrow local issues,'' and there was much talk of "bourgeois nationalism." As it turned out, there was no return to the rigidly centralized rule of Stalin's days, and the Latvian Regional Economic Council still enjoys considerable autonomy from Moscow. But the Kremlin did decide that too much freedom had been made available to the Latvians, that things had gone far enough in the direction of "liberaliza­tion." The Soviet colonization of the . country was renewed, despite improve­ments in the standard of living, the re­construction of a few historical monu­ments and national holidays and the publication of the works of a few reha-bilitated writers. ·

Today Latvians must accept the rule of the Soviet Union. They have become accustomed to political circumstances which they do not control. Yet I would like to c~all your attention to some . evi­dence that Latvians have not forgotten their distinctive past. There are several · reasons why the Russians have had dif­ficulties in their drive to stamp out the national characteristics of the Latvian people. · For one thing, Riga retains its Baltic quality-which embraces German, Slav, and Scandinavian infiuences-althotigh it has now been integrated in the Soviet Union for over 20 years. There remains

a feeling of mellowed civilization in this stately 760-y'ear-old city on the banks of the Daugava River. with its quaint, nar­row lanes lined with medieval edifices and lovely · churches. Something of this atmosphere extends even to the modern quarter, which is alive with bustling shops and cafes and goOd food.

Latvians have always been . a fine­featured and artistic people, and they dress with more distinction than is cus­tomary elsewhere in the Soviet Union. Soviet citizens of other nationalities coming to Riga tend to spruce up under the infiuence of /local standards. An­other obstacle to total integration into the Soviet Union is the Latvian nos­talgia for the West-what the Commu­nists call "unhealthy bourgeois tenden­cies" -that can be seen in such things as Western dress, theater, and music. The churches of Latvia have provided some of the most enduring ties with the past. Finally, Latvian is still the main language of the ·country, although Rus­sian has become common as a second tongue. . The mayor of Riga recently told a re­porter from the New York Times that "the national. question does not exist. It has been solved." Neither the reporter's impressions nor the evidence which I have mentioned bears out this claim. According to the Times:

Latvian nationalist sentiment persists and there is grumbling about the unabated in­flux of Russians into the city * * *. In the privacy of their homes, members of the older generation reminisce about freedoms that the young people have not experienced.

The same conclusion is suggested by an entirely different source: The first secretary of the Latvian Communist Party warned last year that the "effects of bourgeois nationalist propaganda have not been completely liquidated even now." Thus the Latvians remain rest­less under Soviet rule, and there is every reason to expect that the Latvian cul­tural unity will survive, even while political independence is gone.

It has been many years since the un­happy Latvians have known freedom. During the Second World War they suffered all the horrors and tragedies of that terrible confiict, hoping all the while that the end of the fighting would be a signal for their freedom. But the Soviet Union's reins over Latvia proved to be tighter after the war than ever before, and today these people are making the best of a sad situation under a despotic · and inhuman regime.

Buy American

EXTENSION OF REMARKS OF

HON. EUGENE SILER OF KENTUCKY

IN THE HOUSE OF REPRESENTATIVES

Wednesday, July 18, 1962 Mr. SILER. Mr. Speaker, we spend

the blood and treasure of our Nation in time of war to preserve . it against for­eign encroachments.. Theri ·in P.eace­tinie we "forget ali about .Americimism

·and the great need to maintain- jobs for our own people and the desirability of fostering our own country above all others. Feeling as I do about rekindling the fires of patriotism and Americanism

·in the hearts of our people, I have this day sent a message to the Department of Defense on the subject of its recently announced policy of buying American. The message is as follows and I hope that many other Members of Congress will agree with its pronouncement:

JULY 18, 1962. Hon. ROBERT S. McNAMARA, Secretary ·of De]ense, The Pentagon, Washington, D.C.: .

I wish to congratulate you on your buy­American policy as announced in the press this week. This is as wise and commendable .as any decision that has been made by the Kennedy administration. There has never been any justification for buying goods made in Timbuktu or in countries that may possibly be under Communist influence when those same goods can be purchased from our neighbors and friends right here in America. If we do not take care of our own people then we are worse than infidels according to the Bibl.e. ·The sooner we return to the Americanism of our fathers the sooner we will achieve greatness, power, and influence for our country. One of ·the great needs of the hour for America is full employment for every man and woman who is able and willing to work but this will never be .achieved until we buy both steel and stove­pipes here at home and for wages 'that .will go ·about doing good among the people · of our own land.

·EuGENE SILER,

Member of Congress, Eighth District .of Kentucky. ·

Renewing America's Cities: A Study of Urban Renewal

EXTENSION OF REMARKS OF '

HON. ROBERT P. GRlFFIN OF MICHIGAN

IN THE HOUSE OF REPRESENTATIVES

Wednesday, July 18, 1962

Mr. GRIFFIN. Mr. Speaker, nearly every year the Congress is called upon to legislate on some phase of . the urban renewal program. A few months ago we were asked to create a new Cabinet De­partment of Urban Affairs which would have included the activities of the Fed­eral Government in this field.

The history of Federal urban renewal makes interesting reading. A recent study, "Renewing America's Cities," brings together many significant and little-known facts about this program. This new book points · out that Congress authorized Federal slum clearance and 'public housing over 25 years ago. as a temporary unemployment relief meas­ure; however, the Federal activity in this field has not only continued over the years but has expanded into what is now known as urban renewal.

This new study traces the history ·of urban renewal legislation and examines its impact upon constitutional concepts. It 1tttemp~ to _put .the whole problem in ~rspective by· reviewing what has been aone and what is being done. The book

1962 CONGRESSIONAL RECORD- HOUSE 14063 also explains how the program works; considers the basic causes of city-deterio­ration, and suggests certain guidelines for the future.

"Renewing America's Cities" was pub­lished by a nonpartisan research organi­zation, the Institute for Social Science Research here in Washington. The au­thors of this excellent book are Dr. Thomas F. Johnson, Dr. James R. Mor­ris, and Mr. Joseph d. Butts.

Dr. Thomas iF. Johnson has had long experience in the field of public policy research. He was assistant commis­sioner of the Federal Housing Adminis­tration in charge of research and legis­lation from 1954 to 1958, during which time the urban renewal provisions of the National Housing Act of 1954 were being implemented. He has taught at the University of Virginia and Geor~e Wash­ington University and is the author of

.· numerous publications. Dr. James R. Morris, a consulting

economist, was for a number of years en­gaged in teaching and research at the Universities of Illinois, Chicago, and Ar­kansas. He is author of "Employment Opportunities in Later Years," published by the Foundation for Voluntary Wel­fare, and articles in numerous profes­sional journals.

Mr. Joseph G. Butts, a member of the District of Columbia bar, was associated for some years with the Washington law firm of Gall, Lane & Howe. Formerly, he was administrative assistant to the late Representative John H. Kerr, of North Carolina. Mr. Butts has contrib- . uted numerous articles to legal jour­nals and other publications ..

Pursuing Common Goals

EXTENSION OF REMARKS OF

HON. A. S. HERLONG, JR. OF FLORWA

IN THE HOUSE OF REPRESENTATIVES

Wednesday, July 18, 1962

Mr. HERLONG. Mr. Speaker, last month my distinguished colleague, the junior Senator from Florida, GEORGE A. SMATHERS, _ addressed the 30th Annual Convention of the Edison Electric Insti­tute, and in so doing not only paid trib­ute to America's electric power com­panies, but gave perspective to the roles qf,private enterprise and GGvernment in the production of electrical power. . , ·

Under unanimous consent I include Senator SMATHERS' speech in my re.:. mar~s: '

l • , , PURSUING COMMON GOALS .

(By Ho~. GEORGE A. SMATHERS)

It's a real pleasure to talk to you gentle­men who represent an industry which is in the vanguard of American progress and development, an industry that has made a tremendous and dramatic contribution to our way of life and an industry whose future has widened the security of our Nation and of our welfare of our people.

You have achieved an enviable record in the great drama of the free-enterprise system, Vfhlch is the taproot of the American eco­nomic system. The responsible stewardship of private property sets our Nation apart

from conflicting ideologies in this world in $46 billion, td which is being added new which we live today. Your exercise of that _capi:tal at the rate of $3 billion every single responsibility, as you have in the past, will year. Almost every American family, either assure to the electric power companies a directly or indirectly, owns a share in the bright place in the future of our Nation, just electric power industry. Four million !ami­as your exercise of that responsibility will' also lies have direct ownership in your industry. assure to our system and to our Nation a Untold millions of other families indirectly bright and abiding place to leadership in the own a sh~re in private power companies world. through their insurance policies, their sav-

We can be satisfied with no less than the ings accounts, their mutual funds. finest and the, most efficient . elec:tricaf sys- It is the public confidence in your future tern in the world. and certainly, as the Presi- that makes it possible for 10 percent of the ·dent of the United States said in his message total personal savings of the Nation to be on resources last year, it is not a task which annually invested as new capital in the pri­should or can be done by the Federal Govern- vate electric power industry. ment alone. Only through the full antic- An example from my own State of Florida ipation and cooperation of private industry would show that the utility companies of can it be done wisely and effectively. America are worthy of that confidence; that

I personally believe that private enter- they are, as they have always been, prepared prise should always remain the ba!)ic in.stru- to meet the great challenges our · country ment of service to our people. In every case faces. With the consent of the Florida where it can accomplish the mission, private Power & Light co., the Florida Power enterprise should be permitted to do the job Corp., and the Tampa Electric co., I am to­and to do it alone. However, where in the day privileged to make the first public an­interest of the public or the national interest nouncement that these companies will soon a job . must be done and private interest initiate construction ·of a multimillion-dollar ~ doesn't want to do it or is at the time not joint project which, when completed next ready to do it, then we all must expect that year, will add 240,000 volts to the state's the Government will step in and meet the high-voltage transmission system, feeding need. . world-renowned Cape Canaveral. These

There will be times, as you and I both companies have joined together to provide, know, when the resources of both the Govern- solely frotp private enterprise, ample power ment and industry are necessary. We see for the :missile test center which will be the this, for example, in the development of our earth terminal for our shots and probes to generation from nuclear energy. Already the moon, and beyond. 6 nuclear power generating plants are in This new transmission line will be an 1m­operation, with 10 more under construction portant link then' in the statewide intercon­or in the planning stage, all financed largely necting power grid which blankets the entire by private enterprise in cooperation with the State of Florida. The project will permit the Federal Government. All told, these great transfer of power all over Florida, so that all plants will have a capacity of 2 million kilo- the demand and uses can be met. It will watts. The progressive steps that you are make possible economy of operation with the taking with each new project, the knowledge private producers which they will pass along and experience you are gaining from actual to the consumers. operating experience as constant improve- We are, indeed, proud 0~ the tremendous ments are made will bring the United States · ~row~h of our f?tate, w:J;iich has moved us nearer to the goal of having this inexhaust- from the position of 20th in the Nation with lble source of power become competitive with respect to population up to ·where we are the cost of conventional fuels.

In this American way we combine the re- ,now 9th. We _have grown some 76 percent sources and research of our Government il}, the past ,de9a.d~. Our modesty, like that

of our sister States of Texas and California­with the research, production machinery, well, some of them have not kept pace with and the operating know-how of America's electric power companies, priv'ately owned us. I don't want to brag unduly here, today;

however, I would like to say that we in Flor-for the betterment of all of our people. ida recognize California. It also calls itself

Your progress has been nothing short of the Sunshine State, but the big difference phenomenal; while you have increased elec- is that in Florida, you can see the sun shine. tric power production in the last decade by We like to remind our California friends more than 140 percent, compared to a 40-percent increase in the Nation's gross na- that the abbreviation, "C-a-1-i-f." actually tional product, you have, over the past 30 means "Come and live in Florida." years, actually reduced the price per kilo- I am happy to say, and with some breach watt-hour for residential service from 6 of modesty, that the total generating capa­cents in 1930 to o:p.ly 2Y2 cents in 1960. bil1ty of Florida power producers quadrupled Truly, electricity is one .of America's biggest during the past 10 years compared to the bargains. . Nation's increase of only 1Y2 times. Electric

Today your industry produces nearly 40 sales quadrupled while, for the Nation, their percent of the world supply of electric power increase was only 1 ¥.l tinies; electric con­for our u.s. citizens, who comprise only . 6 sumers were doubled compared to a net in-

crease of only one-fourth. percent of the world population and, in the I know you will forgive me for 'this little next decade, the power industry expects to increase its generating 'capacity, so I am in- bit of bragging about home, particularly formed, by ano~her 135 million kilowatts. when you realize that t-he little that I have You already support an industrial complex said is a distinct compromise from what I

· which has made it possible for the Ameri- · intended to say. · can worker to turn out 3 times the average The story of our spate is just .one example. hourly p:coductio:t;L of the .European woi~er, ·. _pther , companies from other ~reas of the and 7 times . that of the Japanese worker and Nation are forging ahead developi~g· t'he re-10 times that of a worker in the soviet sources of our land so that the challenge of Union. It's no deep, dark secret that your this generation will not go unmet-the chal­industry has kept the pace and, indeed, set lenge of t~e needs of our rapidly increasing the pace for the American economy in gen- population and a challenge to the free world eral. Your companies exemplify the broad, epitomized by the Sino-Soviet bloc. If we public-ownership concept upon which rests ~re to remain the bastion of freedom, if we the cornerstone of our econo~y. You have ·are to ~eet the Soviet challenge, if we are built your companies on a solid base, attrac- to prov1de for the needs of our people, we ti'~e to the investing public. You have must devote o~r full energies to a strong earned the confidence of the American pea- and exp~nding economy, and it is your in­pie. For that reason, your industry is one dustry, gentlemen, upon which in the last of the largest in America, by any standard of analysis such an · economy mus~ largely measurement. It has a total invef!tment of depend. · · ·

:14064 CONGRESSIONAL RECORD_ .. · HOUSE July.- 18 Just as the life substance of man pulsates

through 65,000 miles of blood vessels and arteries, so does ~e life substance o!. our .economy--electric po:;ver-pulsate through some 304,000 miles of power transmission lines throughout this Nation.

The amazing story of your industry under­. scores the vast dime_nslons of its role in our .country's social and . economic J;ramework. It emphasizes the importance of your .prog­

,ress and your attitudes, your financial and, it should be said, your political position in the United States. · · ·

This leads me to a point I know is some­what uppermost in your mind-that of pub­lic power versus private power. The scene portrayed by some political cartoonists and other observers of the national scene is this­two close-ranked parties armed to the teeth and squared off, face to face, ready to charge into battle. About one group flies the banner of private power and, above the othe·r, the public power flag is unfurled.

. This type of thinking, is not only inaccu­rate; it is illusory. It is as illusory as the

. story o! the whale that fell in love with a Polaris submarine off the cape. When the submarine would go down and dive, the whale would dive; when the sub surfaced, the whale got so that it surfaced and, when the submarine finally fired a Polaris missile, the whale went around passing out cigars.

It is a giant fantasy to envision the polit­ical parties ne~tly lined up under · separate banners on this particular issue. The truth is, there are too many extremists marching under all banners. An intelligent look at the record shows the issue of public power versus private power is · primarily prescribed by geographical lines, rather than by party lines. I know some Republican Senators, mostly from the West, who advocate strongly public power and, on the other hand, many of my fellow Democrats from the East and practi­cally all from the South oppose any use of Federal funds for power projects.

These viewpoints are concerned with the States and areas which these gentlemen hi:we the honor to represent, rather than being developed from their party or their plat­forms, written in faraway places by anony­mous faces. In recent months there has been some indication that, within this ad­

, ministration, that more compromise is be­. ginning to take place in working out the

controversies that arise between public power and private power. For instance, I have noted that new transmission lines in the West wm be part private and part Federal, instead of all Federal as they were originally planned, by this as well as the last adminis­tration.

I know that many of you do not concur · with the compromise agreement; it is en­

couraging to note, however, Secretary Udall's subsequent statement that the proposed in­tegrated system will do more to accomplish the purpose of the project than would the all-Federal system as it was originally planned. While the electric companies may not be happy with the mixed system of private, Federal, municipal and cooperative ownership, it is fact of life and, since we must live together, it is just good horse­sense, it seems to me, to work together in a way that wm promote all of our best in­terests.

There are, as you know, some groups which favor the expansion of Federal power systems at the expense of your business and your territory. To gain their ends, these groups make themselves heard loudly in Washing­ton. They are not there for a courtesy call; they're on the job continuously, advocating what they honestly believe in. They are a vocal group, and we hear from them a.bout the great power supply that they plan for our Nation_;_but we don't hear very much about the utllization of tax ·funds; or that tax-qollecting, private power companies are

·competent and willing to do the job, nor do

l

we hear very much about the pl-a.ns that -y.ou people are making.

I. believe the most important observation tha't I could make today is to urge you to concentrate on presenting your views . to Washington vocally, articulately and, if you will, constantly. As the song goes, wishing will not make it so. You must defend your

. point of view with the same vigor and at ,the same time 1n some instances with the same commercial spirit that moves your .op­_position. Look to the areas where differences in point of view are most likely to occur. For example, consider . the new hydro proj­ects, particularly in the West. Will they de­.mand generating stations be bullt by the Federal Government or by private com­panies? Will the Federal Government con­struct future atomic energy electrical plants such as the Hanford project, which was de­feated in Congress last year, or not? Will the Government bulld certain high-voltage transmission lines which private companies are ready and willing and able to bulld?

There are many Congressmem, there are many Senators who have not made up their minds on these particular questions, so I urge you to be your own advocate to present your views because, after all, this is your right and this is the American way.

Another problem which we have had with us for a long time is the preference clause which determines whether one customer shall have the benefit of Government-subsi­dized power, while his neighbor cannot have that. There must be some fairer way of limiting or applying the preference clause so that available Government power is more equitably distributed to more users in the best interests of the general public.

I know your feelings with respect to the positi6n of Government power from the standpoint of taxes, particularly income taxes. There could be no realistic compari­son of electric rates between two systems where one system pays all the taxes and the other system pays little, if · any. I do not, nor can anyone else I have met, come before you here and offer a lot of easy solutions to these problems. I am convinced that the thing for you to do is to state your point of view fairly, factually, and persuasively over and over again to the people who represent you in Washington. I believe you will re­ceive a sensitive response. If your program is best for the public interest, I think it will

. ultimately prevail because I think that the majority of the Members of the U.S. Con-

. gress, irrespective of their political affilia­tions, believe in the free enterprise system and want to do that which will best serve it and the Nation.

I should like to make it clear, here and now, that my suggestion that you visit your legislators more often was not directed to my friends in Florida. One or the other of them keeps a chair warm in my office most

can . tell you t.h.a.t. tor several w~eks, . there, we were deluged with mail. I even heard HUB]!:RT HUMPHREY, · the whip of the u.s. Senate, say 'that lie got over 30,000 letters protesting this particular proposed action. · ·It's a very affirmative ·and persuasive way .to influence the thinking of your legislators. ·I firmly believe that, if you muster the forces .In your favor, marshal the facts and present your case, you will see tangible results for yo:ur efforts. I know that inany of my friends 'in the Congress think, just as I do, that pri­vat~ ent~rprise applies just as fully iri the ·area of electric power as it does in ·every other marketplace in America. - I would like to say, while on this general subject, that some of ·the rumors we hear today about the President of the United States being antibusiness are, in my humble judgment, baseless as some o! the empty claims made about you by your opposition. I have known John Kennedy since he and I first came to the Congress, way back in 1946. We have been close, personal friends; I was at his wedding. I think I know some­thing about the way he feels about many subjects.

He is one of those men who believes what he says and says what he believes. I have never heard him utter any statement in my long association with him that any fair­minded man could interpret as being anti­business. He does say what he believes, as I said; he believes what he says, and I be­lieve he made this statement just recently. He meant what he said and I quote him:

"We want prosperity and in a free enter­prise system there can be no prosperity with­out profit. We want a growing economy, and there. can be no growth without invest­ment that is if!Spired and financed by prof!t."

A few weeks ago he spoke with equal candor to the United Automobile Workers convention, right here in Convention Hall, and said, "I speak as President of the United States with a single voice to both manage­ment and to labor when I say that your sense of responsibility, th~ sense of respon­sibility of organized labor and of manage­ment, is · the foundation upon which our hopes rest in the coming crucial years."

In the interest of business and govern­ment, we must remember that their interests do coincide far more than they clash, and in this day of great challenge and ereat change we must join our common interest in the pursuit of common goals. Business must act responsibly and fairly and with a sense of public consciousness·, while the Gov­ernment must remain a friendly referee, objective and fair, never losing sight of the fact that our system is fundamentally a free e:r:terprise system in which freedom of deci­sion and choice is essential, and profit is not a dirty word.

This is the great challenge of the day which we in Government and you in busi­ness must together solve, and we look to you businessmen, particularly to an industry such as yours, to help solve this problem,

. all of the time. I ha:ve thought about charg­ing them rent, but they plead that the new

· tax bill does eliminate any expenses for that kind of lobbying. They have a way, however,

. of wheedling a great deal of information from what they call a friendly chat, and

· they keep me and other legislat ors from our area of the country fully up to date on what they are doing and plan to do in the

· to help create a flourishing economy which will be as a deep, enlightening hope to all the peoples of the world, drawing them into the atmosphere of a free and democratic ~conomy such as that to which we belong.

future. · Remember, too, while you have only one

voice, your customers and your employees and particularly your stockholders are num­bered in the thousands and hundreds of thousands, for that matter. When you en­list the ~upport and good will of all these people, you have gained the strongest pos­sible ally to project your point of view. A recent case in point was when the Federal ­Savings and Loan Association did not like certain provisions of the tax bill which is now before my committee in the Senate. They got their subscribers and policyho.ld­ers and their shareholders to write, and I

The Federal Home Loan Bank Board

EXTENSION OF REMARKS OF

HON. JAMES C. DAVIS OF GEORGIA

IN THE HOUSE OF REPRESENTATIVES . . Wednesday, .July 18, 1962

Mr. JAMES C. DAVIS . . Mr. Speaker, as you are aware, I have been acutely

1962 ·CONGRESSIONAL RECORD-- HOUSE 14065 ing the past 2 years. I specifically disclaim. status as an expert; I have never managed an association nor have I acted as an officer or a director of an association. Until the time of my selection to chair the Special Subcommittee on the Home Loan Bank Board of the House Committee on Govern­ment Operations by its distinguished chair­man, the Honorable WILLIAM L. DAWSON, of Illinois, I had little interest in or active con­cern for the problems of savings and loan as­sociations-whether State or federally chartered.

As a former active real estate broker I had had occ·asion to do business with associa­tions, and Of course my concern as a broker was in securing the necessary financing of

concerned with the operations of our Federal Government agencies and de­partments for many .years. This con­cern, I believe, has been shared by my colleagues. A few years ago the Con­gress actively dealt with the operations of some of the so-called regulatory agen­cies and it is hoped that there has been a resulting improvement in their opera­tions. For the past 2 years my distin­guished colleague, the Honorable JoHN E. Moss of California, has been chairman of the Special Subcommittee on the Home Loan Bank Board of the House Committee on Government Operations. This special subcommittee has been mak­ing a study and investig~tion of the Fed­eral Home Loan Bank Board and its constituent agencies. This Federal agency, the Federal Home Loan Bank Board, has a supervisory and regulatory _ responsibility and function over the sav­ings and loan associations whose ac­counts are insured by an instrumentality of the Federal Government--the Federal Savings and Loan Insurance Corpora­tion. The savings and loan associations, we are aware, are an integral and vital part of the Nation's homebuilding industry.

, home-s for which I had secured buyers. I was almost completely unprepared for the reve­lations which unfolded almost immediately upon a::;suming the chairmanship of this subcommittee.

The hearings of this ·special subcom­mittee present a startling and amazing picture of some of the past operations of this agency. There is apparently great need for reform and correction. It is hoped that the present members of the Bank Board will make use of the public record to effect improvement.

On Monday, July 16, 1962, Congress­man Moss was the key speaker at the annual convention of the Georgia Sav­

. ings and Loan League., held in Asheville, · N.C. I feel strongly that all Members of

the House will find Congressman Moss' address both interesting and informa­tive and I ask permission to include it at this point in the RECORD.

The address follows: AN ADDRESS BY CoNGRESSMAN JoHN E. Moss,

CHAIRMAN, SPECIAL SUBCOMMITTEE ON THE HOME LOAN B:ANK BOARD, BEFORE THE GEORGIA SAVINGS AND LOAN LEAGUE ANNUAL CONVENTION AT ASHEVILLE,' N.C., JULY 16, 1962 I feel particularly privileged to have the

opportunity of appearing before the same forum utilized by Mr. John Wyman in 1958 when he enunciated a Wyman doctrine as a guide to the regulation and supervision of savings and l9an institutions. .

I am also pleased to have the opportunity to discuss with the Georgia Savings and Loan League the problems which have long been of concern to you and to the officers of your · league. Far too few of the leaders in the savings and loan field have taken the time to express their concern with the rather in­formal procedures and policies which have for so long formed the 'basis fo:r supervision and regulation of the great savings and loan ' industry. I feel that I must take cognizance of the role played by your own executive vice president, Mr. Ed Hiles, in giving voice to the concerns of your industry-in de­manding the greater clarity and definity of regulation needed as a guide to those who seek to faithfully conduct their businesses in the interest of the investing community.

I want to make it very clear that my ap­pearance here today is as the chairman of an investigating subcommittee of the House of Representatives, and that I will discuss in­formation and knowledge gleaned as a result . of the activities of this subcommittee dur-

· You may recall that initially I launched an investigation into the then recent seizure of the Long Beach Federal Savings and Loan Association in Long Beach, Calif. I under-

- took my investigative responsibilities without any prejudice or preconceived notions -as to the merits of the seizure. I envisioned my role as that of a fact finder. I sought the op­portunity to proceed cooperatively with the then chairman of the Federal Home Loan Bank Board, Mr. Albert J. Robertson, his two associates on the Board, and the Board's staff. In consonance with that objective, I instructed my staff to extend the greatest co­operation to the Board in the development of the facts surrounding the Long Beach case.

A moment ago I mentioned the fact that I was unprepared for what shortly developed as the Board's pattern of operation. Let me emphasize, gentlemen, in all sincerity that I was totally unprepared.

A reading of the first day's hearings with the then chairman of the Board, Mr. Robert­son, on the witness st~nd, I am confident will permit tJ;le reader full opportunity to share with me the feelings of frustration and out­rage which I experienced on that day and in the succeeding 11 days. · Chairman Robertson· entered a plea of privilege; he was uncertain whether it was executive .or judicia.I--or a combination of both; and he hadn't the slightest idea as to the basis for his ·plea. But it became obvious that he did not want to discuss the merits of the Board's case against Long Beach-even though at that point it represented a case decided-a case closed. Seizure had taken place and a super­visory agent was in charge of Long Beach Federal-a fact fully accomplished-without affording the management of Long Beach Federal the slightest opportunity to be in­formed of the specific nature of charges or affording an opportunity to protest.

Congress in 1954 amended the basic act which- constitutes the charter of the Board. It specifically provided for hearings in ad­vance of seizure. A reading of the legislative history will confirm this, I think, except in those instances of the most urgent nature, where it is necessary to protect the interests of the institution and the interests of the shareholders. Long Beach was not such a case. The extended hearings on Long Beach were followed by hearings involving a mem­ber of the Georgia League;· hearings per­taining to an association in Texas; and an­other in Clovis, N. Mex. In addition, the investigations into the facts surrounding instances of supervisory action against at least half · a dozen others throughout the United States, have developed a record which speaks most persuasively in support of the need for the definition of terms for the re­sponsible regulation of savings and loan institutions by the Federal Home Loan Bank Board.

What is the pattern which has been clearly developed throughout the course of the ex-

·tended hearings conducted by my ·subcom­mittee?

First, it is one of regulation and super­vision dominantly by the staff and the under­staff of the Home Loan Bank Board and the district banks.

Second, the many instances of arbitrary and extralegal mandates of the Director of the Division of Supervision, Mr. John Wyman.

Third, the absence of regulation· to fore­warn against practices which are repeatedly cited by supervision as the basis for the extralegal demands or as in the case of Long Beach, for the ultimate action of seizure.

I am going to discuss the three points­but first let me say to you gentlemen that I am not an· enemy of regulation of your industry nor am I a person who feels that Government is always wrong and industry right. 'But I am a · firm ' believer that neces­sary regulation must be fairly and equitably applied and that those who are regulated have the absolute right and need to know the terms of regulation. 1\nd, as a Member of Congress, I will support this philosophy and I will oppose with all my strength, and wisdom, and persuasiveness, a contrary course.

I have charged the understaff of the Board with arrogating unto itself the right to set policy and the right to determine the condi­tions of supervision and I recognize that this is a serious charge. So, I think it is incum­bent upon me to document, with the words of supervision, some typical examples.

In discussing with Mr. Wyman whether or not two instances of early disbursement of funds to a builder constitutes a~d supports a charge of unsafe or unsound practice, I contended that it was not conclusive evi­dence to support such a charge-that full development of the facts were necessary to

· :render a proper judgment. Mr. Wyman responded and _I quote: "I think we did a considerable develop­

ment of fact here. Again I made niy . state­ment as to my view on :tl}is, and wherever any .such situation as this. has come to my

. personal attention; I have entleavored to stop it and I think we have stopped it, and to further restate the matter, unless and until the Board tells me to do otherwise, and as long as I hold the position that I now

. hold, when I find this kind of thing I am going to do my best to get it stopped."

I described as arbitrary and dogmatic his judgment that the single or double occur­rence on its face without having to probe any more deeply, constitutes grounds for charging unsafe and unsound.

Mr. Wyman then said, and I quote: "Well, that is where you and I don't agree

on it. I have stated my view on it, and it is very definite, and as far as I am conce:r:ned quite conclusive."

At another point during the hearings we were discussing with Mr. Wyman credit poli­

. cies and practices of the association and the relationship of slow. loans to such ·poli­cies and practices.

' Mr. Wyman insisted that the dollar amount of slow or delinquent loans was the influencing factor · without regard to the assets or ·number of loans of the particular association. Let me read the exchange I had with Mr. Wyman on this subject, and I quote: ·

"Mr. Moss. If you make more loans, you are going to have more delinquencies, aren't you, regardless of how prudent you are?

"Mr. WYMAN. Well, I would say this to you, sir: We are not going to overlook the dollar increase in the amount of delinquent loans.

"Mr. Moss. I didn't say you should over­look the dollar amount of delinquent loans.

"Mr. WYMAN. We are not going to look at the percentage to assets .only. We are

14066 CONGRESSIONAL RECORD- HOUSE July 18

going to look at the other aspect of the matter."

I expressed my opinion on this attitude by the following statement and I quote:

"Well, now, let me tell you something. You k'}ep telling me what you are going to do and what you are not going to do. Let me make it clear to you that one of the purposes of this inquiry is to develop exactly what you do. And then I will be perfectly willing to see whether you are going to be the ·sole arbiter of what you do."

I am perfectly willing to concede the sin.­cerity of Mr. John Wyman. I am willing to concede the competence of Mr. Wyman. But--contrasted against these concessions is the fundamental principle that we are aNa­tion governed by law and that it is our right to be governed by law whether we are a char­tered group or an individual American. The wisdom of Mr. Wym,an and the sincerity of Mr. Wyman do not in themselves constitute an adequate substitute for definitive rule or regulation. And nowhere in the law origi­nally creating the Board nor in any of the amendments to that law over the years is there any sanction for the role assumed by Mr. John Wyman.

Going back to the many instances of arbi­trary and extra-legal mandates of the Direc­tor of the Division of Supervision, Mr. John Wyman: The staff of the Bank Board has gone into solvent associations in a number of instances and ordered the removal of di­rectors, the substitution of management, and changes in the numbers of directors. A search of the statute discloses no sanction for this action. ·In fact the Board's requests to the Congress for the authority to do these things have been -denied over the years.

Now in the case of Clovis, N. Mex., we have an even more shocking example of the arbitrariness of this supervision which can best be mustrated by reading an excerpt from the minutes of the Federal Home Loan Bank Board instructing the Director of Supervision, Mr. John Wyman, to do certain things, and I quote:

"The Board instructed the Director to fully advise the board of directors of the Clovis association as to the matters of super­visory concern arising from its management and operations and to request the board of directors to provide the association with sound management and sound practices, and to request that the board of directors select a committee of three from among their members who will be acceptable to the Di­rector and who will be authorized and di­rected promptly to develop a pz:ogram which will correct said matters of serious super­visory concern and provide for the sound management and operation of . the associa­tion in a manner acceptable to the Federal Home Loan Bank Board."

Presumably acting on these instructions, Mr. Wyman called the board of directors of the Clovis association to Little Rock to meet with him and the supervisory agent. At this meeting, without prior discussion, they were read a nine-page letter setting forth Mr. Wyman's findings of unsafe or un­sound policies and practices, and they were told to sign a letter committing themseives to full compliance with the-and I quote­"corrective action required."

Mr. Wyman had been instructed "to ad­vise" and "to request"-not "require."

Under that authority Mr. Wyman's letter states and I quote:

"It is imperative that conclusive steps now be taken to put an end to the unsafe or un­sound operation of the association and to the self-dealing relationships and practices which are the cause and the dominant pol­icy of that operation."

Mr. Wyman did not advise; he stated his conclusions as fact.

Mr. Wyman was instructed to request the directors to provide the association with

sound management and sound practic;:es, and to request that they select, from among themselves, a committee of three to d.evelop a program which could correct the matters of -supervisory concern and provide for the sound management and operation of the as­sociation. His letter required that the direc­tors at that meeting in Little Rock establish

· a committee of five directors, not three as he had been instructed; and that the pro­gram was to be approved by the Division of Supervision. ·

Mr. Wyman demanded. This is very clear. He did not request, as he was instructed. Mr. Wyman demanded, and his actions exceeded the specific instructions imposed upon him by his superiors, the members of the Fed­eral Home Loan Bank Board. He exceeded his authority in that he required the em­ployment of a new managing officer and an increase in the number of directors from 7 to at least 11. Mr. Wyman specifically re­quired that the new managing officer and the new directors be acceptable by and to the supervisory agent prior to appoi~tment or election.

I think I have made my point and illus­trated for you the almost contemptuous be­havior of Mr. Wyman. He apparently had not agreed with the Board instructions and so he undertook, on his own, to substantively change them in defiance-not in compli­ance-with those instructions.

Now we really get down to the crux of the whole problem. We are told that you can't define by regulation these practices cited by supervision as basis for supervisory actions against these institutions. And speaking from 14 years of legislative background, I assure you that I recognize the great diffi­culty encountered in the promulgating of legal definitions and the spelling out of guidelines in law or regulation. But I also recognize that in order to cite a practice as the basis for action against an association or its officers-that the citing itself consti­tutes a definition, and that the repeated citing of these instances of objectionable practices leads to a series of instances of definition and certainly after more than a quarter of a century of operation, the Board from its own records should now be able to reduce to definitions the terms of manage­ment practices which it finds objectionable, and give notice to the entire industry that these, at least, will not be tolerated. Such a definition or series of definitive regulations do not have to be exclusive.

They can still provide for the unforeseen development of conditions which might con­stitute another basis for charging unsafe or unsound practices. And certainly the Board can, without any difficulty define rela­tionships which constitute in their opinion, improper self-dealing or conflicts of interest on the part of officers or directors of asso­ciations.

The thing that has impressed me greatly as I have studied the problems of the past 2 years is the fact that the Board has a most contradictory attitude-accepting regularly as it does applications for charters or for in­surance of accounts from new or existing associations, whose boards of directors are, in most cases, closely identified with activities allied to the homeownership and home­building industry, are accepting those appli­cations without imposing any restraints. The Board must certainly recognize that the chief interest of th.ese people is to encourage the wider ownership of homes in order to stimulate activity in their allied business interests. As a matter of fact, from the very beginning in the days when the Board had to go out and encourage the formation of savings and loan associations, it was to the man in the allied fields that they looked to for the support, the initiative and the guidance, which has resulted in the highly successful development of the savings and

.loan industry . . Now w~ are told that the Board regards many of these activities and interests as constituting activities of in­terests in con1Uct with the impartial manage­ment or the exercise of impartial judgment in the operation of these associations. If ·that be true, then here above all other areas the Board must, if it is to be consistent and it is to be responsible, define and give clear notice of activities which constitute conflict of interest or self-dealing. To apply, as they do now, a standard of flexibility is to countenance a standard highly discriminatory to many who have spent years in developing strong and constructive economic units in1 their community.

I am told that .Mr. Wyman in 1958 gave you . his views as to the nature of some of the con­flicts or violations of fiduciary relationships on the part of officers or managers of associa­tions. lam also told that Mr. Creighton, the Chief Counsel, in a speech in 1957, first un­dertook to define the Chief Counsel's post-. tion. But nowhere do I find the Board's position--and it is the Board, not the Direc­tor of Supervision nor the Chief Counsel who is charged with the responsibility of setting policy, a responsib111ty given them by the Congress with full authority to discharge it. It is to the Board we .must look for guidance, and we have every right to expect, and I do expect, that the Board will respond by laying down the guidelines which will permit you to operate-knowing fully that which is expected of you.

The work of the subcommittee continues. Shortly we will be issuing reports based on the hearings involving the Clovis, N. Mex., and Alice, Tex., associations. Included in these reports will be recommendations which I have every confidence will rec.eive the full support of the Committee on Gov­ernment Operations. We have to complete additional hearings in Washington with the Board and its staff in order to complete our work on the Atlanta case and issue a report on that. And shortly the subcommittee must decide which additional cases it will also hear. Obviously we can't · hear all of the complaints received. We have at­tempted to select those which illustrate im­portant basic problems and their relation­ship to the Board and the industry itself. We on the committee feel that we can best discharge our responsib111tles to the Con­gress and to the public by carefully select­ing cases which develop a record supporting sound recommendations.

I want to express to you my confidence of the sincerity of purpose of the new Chair­man of the Board, Mr. Joseph McMurray, and his associate, Mr. Joseph Williams, of Virginia. I can assure you that they are cog­nizant of every development in the work of the committee. They have been ex­tremely cooperative with the committee in facilitating its study of Board operations. And I have the personal assurance of the present two Board members that the rec­ommendations of the committee will be most carefully considered by them, just as I have the assurance of a number of the members of the House Committee on Bank­ing and Currency of their interest in the work of the subcommittee and their desire to cooperate in the sponsoring of necessary legislative changes which might constitute part of the recommendations of the sub­committee.

I think it is important that the industry give careful thought to the recommendations of the subcommittee, that 1t familiarize itself with the nature of information developed in the many days of hearings and the thou­sands of pages of testimony which ha& been taken in t:ne past 2 years. The committee does not ask concurrence in its reco,mmenda­tions but it does hope for careful considera­tion of those recommendations and for con­structive comment. With the support of the

1962 CONGRESSIONAL RECORD- HOUSE 14067 industry, I am confident that we can effect those changes which must be made tf you are to finally be regulated fairly and equita­bly by rule and regulation rather than by the whims of the ~tafr of the Bank Board.

Remarks of Mr. Miklos Sperling and Secretary of State Dean Rusk on Presentation of the Rembrandt Peale Portraits of George and Martha· Wash­ington to the Department of State, May 29, 1962

EXTENSION OF REMARKS OF

HON. JOHN BRADEMAS OF INDIANA

IN THE HOUSE OF R~RESENTATIVES

Wednesday, July 18, 1962

Mr. BRADEMAS. Mr. Speaker, one of the outstanding citizens of the State of Indian!). is Mr. Miklos Sperling, of Indianapolis, · an industrialist, engineer, and civic leader. Mr. Sperling and his wife recently presented to the Depart­ment of State an outstanding gift, the Hurst portraits of George and Martha Washington, oil paintings by Rem­brandt Peale.

This was the only pair of original por­traits of George and Martha Washing­ton known to be in private hands and the paintings constitute a national treasure.

I was fortunately present at the cere­mony at the Department of State at which Mr. Sperling made a moving ex­temporaneous statement of his reasons for presenting these fine portraits.

Mr. Sperling's remarks and excerpts from the remarks of Secretary of State Dean Rusk follow:

Mr. SPER~ING. Mr. Secretary, Mrs. Rusk, ladies and gentlemen, and friends of mine who gather here for this occasion, I'd like to recall 36 years ago a young engineer. By my own choice I reached the shores of this coun­try of ours. As a young fellow, I was a great admirer of a big freedom fighter of the time of 1848-49 in Hungary, Louis Kossuth, who believed in freedom, liberty, brotherhood, and equality. As a young fellow, I couldn't see it in Europe, so I chose to come to the United States. By hard work, by being an engineer, I made a step forward to be able to have an art collection of my own.

At this time I'd like to tell you, Mr. Sec­retary, that I would like to present to you, which is an honor to me, George and Martha Washington by Rembrandt Peale for the State Department as a symbol of freedom, devotion, and appreciation for my country in which I live today.

Secretary RusK. Mr. Sperling, you could not have done us more honor or given us more pleasure than to make this magnificent gift to us to commemorate in this room the great first President and his First Lady. These Rembrandt Peale paintings are treas­ures of art. I know that our friends from the Gallery field who are here with us per­haps are envious because these are, I be­lieve, the last two of these paintings that have been available in private hands. The others are already in institutional care.

• • • The fact that these were given to us by

Mr. Sperling is to me of specialimp<)rtance. He came to us from Hungary, a country

CVIII--886

which has contributed unusual talents to our own country. I have heard scientists speculate about what they call the Hungarian paradox. "How is it" they say, "that; Hun­gary has produced far more than its normal share of high talent in the sciences, the arts, in other fields?"

• • Mr. Sperling, we are delighted that you

came here, became one of us, and that you joined other distinguished people from other countries who have come here to help us work out this story of freedom. We appre­ciate your interest in these rooms. Y:ou join others, such as Ambassador Cowen and Mrs. Cowen who are here today and others who have taken a deep personal interest in this eighth floor. And I hope you take some quiet satisfaction from the interest and ap­preciation shown by all of our distinguished foreign visitors whom we entertain here at these handsome and distinguished portraits of our first President and his First Lady.

We are deeply grateful and thank you very much for coming.

Leonard A. Skubal: Distinguished Public Servant

EXTENSION OF REMARKS OF

HON. CLEMENT J. ZABLOCKI OF WISCONSIN

IN THE HOUSE OF REPRESENTATIVES

Wednesday, July 18, 1962

Mr. ZABLOCKI. Mr. Speaker, too often the bad is overemphasized and the good overlooked where our Federal em­ployees are concerned. Daily our civil servants are maligned as "bureaucrats," in the worst sense of that word. We tend to forget that Federal employees are people, that each one has an individual­ity of his own. We forget, that is, until one among the ranks goes astray, falls from grace. Then the instant spotlight of nationwide publicity is turned on the offender. His abuse of, or inefficiency in, his office becomes widely known and un­fairly reflects on all civil servants. At the same time, a Federal employee who does an exemplary job too often goes largely unnoticed. Too often his accom­plishments are not "news" in the way that the deeds of the wayward public employee are. Even · should the good bureaucrat be recognized by the Govern­ment for his work, the likelihood. is re­mote that his accomplishments will be known outside of his family, friends, and coworkers. It is little wonder then that the public has a one-sided, warped view of the Federal employee.

In the interest of correcting this in­equity, I would like to draw the atten­tion of my colleagues to the outstand­ing record of public service compiled by Mr. Leonard A. Skubal, a native of Mil­waukee, who recently was awarded the Distingished Service A ward of the Office of Emergency Planning.

Mr. Skubal is Chief of the Economic Stabilization Division of the Office of Emergency Planning, wh,ich is part of the Executive Off}.ce of the President respon­sible for military preparedness. His work involves the development of na­tional preparedness for emergency eco-

nomic stabilization in the event of mobi­·Uzation.

The award he received is the highest conferred by the Office of Emergency Planning. It is given only to individuals who have made outstanding contribu­tions to public service, the Nation, or humanity. The award was presented by Mr. Edward A. McDermott, Director of the Office of Emergency Planning. In his presentation SJ)eech, Mr. McDermott hailed Mr. Skubal's "oustanding and ex­emplary work in governmental, public, and business relations which has con­sistently reflected credit on the agency,

·and has been a significant contribution to the public service and -the Nation.''

Both at the State and National level, Mr. Skubal has worked in several ex~ ecutive capacities in the emergency stabilization field throughout the period since his World War ii military service. Born in Milwaukee and a longtime resi­dent there, he is the son of Mr. and Mrs. John Skubal of 3130 South Hanson Street. Mr. Skubal now lives with his

. wife, Mary, and their six children, in Falls Church, Va., where he is . a past president of the Falls Church Citizens' Association.

I should particularly like to emphasize Mr. Skubal's work in the special area of speaking, on behalf of the agency, at governmental and business conferences. According to his superiors, his work in this connection has been exemplary and has consistently reflected credit on the agency. His sincerity and preoccupa­tion with making preparedness work has had real impact on many audiences and has helped to generate widespread inter­est not only in economic stabilization but

· in resource preparedness generally. He has performed equally well as a lecturer at the Civil Defense College, the military service colleges, as a member of many panels on preparedness, and as a speaker at business and professional conventions.

In connection with his increasing need for communications skills,. it is inter­esting to note that he promptly enrolled in an evening course · at Catholic Uni­versity to improve his writing and speak­ing. Mr. Skubal's fine performance in this regard is attested to in letters re­ceived from various groups before which he has spoken. Excerpts from some of those letters follow: ·

Chamber of Commerce of the United States:

Your explanation of plans for emergency economic stabilization-and your sugges­tions for greater business-Government co­operation-were just what we needed.

The outcome, frankly, exceeded even my fondest expectations. I think the question period made it clear to you that the audi­ence wanted to know, and needed to know, more about this vital subject.

American Hotel Association: We continue to get complimentary letters

from hotel people who heard your remarks at the hotel show 2 weeks ago. You cer­tainly did alert them to the need for co­,operating with all defense agencies in this field. ·

Automobile Manufacturers Associa-tion, Inc.: '

It is always a pleasure for people inter­ested in a given subject to hear it expertly discussed-and this you did.

T! 1.4068 CONGRESSIONAL RECORD- HOUSE ;July 18

My own personal feeling is that such meet­ings are one of the very best media for two­way communication between Government and industry, and I am sure you agree with me that such communication is essential to both.

Director, Industry Office, Staff College Industry Defense Course:

Again, many thanks for your usual fine and effective assistance as guest lecturer at the Staff College Industry Defense Course. It is always good to have you with us for these sessions, which are increasing in their effectiveness and attendance because of per­sons like you. Thanks to your sound, plausi­ble and stimulating presentation, the com­ments from all who attended were extremely complimentary.

National Association of Real Estate Boards: ·

This is a ·most vital subject and our members were fortunate in having the op­portunity to hear your first-hand report. I am sure that this meeting will result in greater understanding of the problem by our members and we are looking forward to working closely with you in the future.

State of Wisconsin, civil defense di­rector:

Len was good enough to come out here for our initial area meeting to get the pro­gram launched, and has always made himself available for consultation and guidance. He has been one of the people in OEP to have done outstanding and original work in get­ting a stabilization program moving. ·

In addition to his speaking engage­ments, Mr. Skubal has had virtually the complete responsibility for staging, as well as participating in, the first four of the agency's regional stabilization conferences in New York City, Atlanta, San Francisco, and Chicago. The audi­ences for these conferences represent business, finance, the professions, and State and local governments. These conferences are intended to pave the way toward active State and local in­volvement in stabilization preparedness. According to Edward F. Phelps, Jr., Dep­uty Assistant Director for Economic Sta­bilization and his immediate superior, Mr. Skubal's accomplishments in putting on these conferences have been outstand­ing, and the agency, as well as national preparedness, · have benefited substan­tially from them.

Mr. Phelps had this further to say of Mr. Skubal:

On the technical side, of course, Mr. Sku­hal has brought to his present position a unique and substantial experience. He has almost 17 .years of participation in the op­eration and planning for emergency eco­nomic stabilization programs. In setting up requirements for our regional stabilization conferences, for example, he was able to draw upon this experience, and to establish

' the standards and criteria for our regional . economic stabilization omcers to ·follow in arranging and conducting the conferences in each area, as well as the preparedness program to be followed after each confer­ence. As a result, we were able to obtain the people we wanted at these conferences, and to achieve the purpose of an e1fective Ul)derstanding of our field program in eco-nomic stabilization. · '

Inasmuch as Mr. Skubal has had experi­ence at every level of economic stabilization, National, regional, State, and city, his ap­proach is practicable and effective rather than theoretical. He is able to present our rather complex subject with an understand-

ing of, and a constant regard for the stake of, the American people, and the problems involved at all levels of government.

It is also interesting to note that every Governor to whom our program was pre­sented responded favorably. This achieve­ment, in and of itself, reflects program ac­ceptance in a difficult field. Mr. Skubal has made an outstanding contribution to this work also because the basic material which was submitted to the 40 Governors, and is used by their State representatives, was ei­ther created largely by Mr. Skubal or de­veloped under his immediate supervision, subject only to my general policy guidance.

To these commendations, I would like to add my own ·words of praise for my friend, Leonard Skubal. A fine public servant and a devoted family man, he surely is an outstanding Federal' em­ployee. To him and to the thousands of others like him throughout our govern­mental structure go my best wishes and heartfelt gratitude.

Veneer Logs

EXTENSION OF REMARKS OF

HON. JOHN H. DENT OF PENNSYLVANIA

IN THE HOUSE OF REPRESENTATIVES

W~dnesday, July 18, 1962

Mr. DENT. Mr. Speaker, this week I received the following telegram:

CHICAGO, ILL., July 12, 1962. Hon. JoHN H. DENT, House of Representatives, washington, D.C.: . I

BDSA Acting Administrator A. A. Bertsch today advised walnut industry hearing on veneer log exports to be held Wednesday, July 18, 10 a.m., room 4817, Department of Commerce Building. Obviously our last op­portunity, but unfortunately meeting to be chaired by BDSA instead of by Bureau In­ternational Programs. Your continued sup­port at above place and date urgently needed.

Respectfully, DoNALD H. GoTT,

American Walnut Manufacturers Association.

I answered by offering what evidence I had at hand, on such short notice, showing that the facts in the case of walnut veneer logs demand immediate remedial action. . My appeal to BDSA follows:

JULY 16, 1962. Hon. A. A. BERTSCH, Acting Deputy Administrator, Business and

Defense Ser1)ices Administration, De­partment of. Commerce, Washington, D.C.

DEAR MR. BERTSCH: As chairman of the subcommittee studying the impact of im­ports and_exports on American employment, I learned that the exportation of veneer logs

· has been the cause of great damage to the domestic veneer producers. This has taken two direct routes: one, the increased price for high quality logs has driven up the prices, making it more difficult for American producers to compete with imports, and two, it leaves the lesser quality logs for domestic use.

Under section 2 of the Export Control Act of 1949, 50 App. U.S.C. 2022, it is the de­clared policy of the United States to impose export controls to the extent necessary "to protect the domestic economy from the ex­cessive drain of scarce materials and to re­duce the inflationary impact of abnormal

foreign demand." . Section . 3 of the act,. 50 App. 2023, authorizes the President to "pro­hibit or curtail" the exportation of any commodities in order to implement this poliey. The authority to determine the commodities to be controlled under the act was delegated by the President to the Sec­retary of Commerce and is administered by the Office of Export Control of the Bureau of International Programs.

The number of board feet has increased from 608,000, in 1954, at a price of $339 per thousand board feet, to 10,185,000 board feet, at a price of $668 per thousand in 1960. This shows an increase of 1,500 percent in the vol­ume; approximately 97 percent in price.

These statistics, plus more, are contained in hearing report No. 8, of our committee, pages 295 to 315, inclusive, and in other sec­tions of volume 8 report, which confirm the damage being done to this domestic in­dustry.

The adverse effects of increasing foreign demand for American raw material of wal­nut , logs, compined with the importation of the finished veneer, have been and are creat­ing a situation that can well spell the ex--.. tinction of this· valuable domestic ~ndustry.

.The industry's long-term plans . and pro­grams for increasing the production and quality of this valuable, natural, raw ma­terial-which, incidentally, is the most valu­able of all American natural woods native to this country-is suffering from this two­pronged attack.

I would recommend that the statisticians and policymakers of the Business and De­fense Services Administration review the testimony of this committee for whatever help it may give in making a determination.

There may be some American industries that are expendable. I know of none, and certainly this one is not.

Sincerely yours, JOHN H. DENT.

Mr. Speaker, in line with this protest of any further depreciation of this indus­try I am compelled to call to the atten­tion of Congress the following related correspondence. '

The first is a copy of a letter to the President calling for aid and relief from Canada. The letter is signed by 43 Mem­bers of the Congress and reads as fol­lows:

CONGRESS OF THE UNITED STATES1 HOUSE OF REPRESENTATIVES,

Washington, D.C., June 12, 1962. THE PRESIDENT, The White House, Washington, D.C.

DEAR MR. PRESIDENT: As Members of Con­gress representing districts across the Na­tion with substantial employment in the forest products industry, we are pleased with your order for a full study by all Fed­eral agencies which can contribute to the correction of the economic problems con­fronting this industry.

Your action is an appropriate and most gratifring response to our appeals for as­sistance and those of the industry to various officials of your administration.

The problems, as you have recognized, are large, diverse, and complex .

Interagency cooperation in dealing with them is clearly indicated. The assistance of Congress has been extended as well, through current hearings of the Senate Commerce Committee and through the joint efforts of House Members whose signatures appear be­low.

While the widespread ramifications and complexities of the situation demand care­ful study, the urgency of its increasing ef­fect on employment and on the stability of major industry requires action of an emer­gency nature.

U.S. imports of Canadian softwood lum­ber were up 21.4 percent for the first

1962 . 'CONGRESSIONAL RECORD-·· -HOUSE 14069 4 months of this year over. the related period of 1961. In this same period, unem­ployment in the forest products industry increased more than 4 percent.

We earnestly request that changes pro­posed in the Department of Agriculture to assist lumber procedures, be given your most serious consideration, attention, and review leading to stimulative lumber action. We enclose these suggestions presented to Secre­tary Freeman on February 21, and we 'fur­ther enclose the statement presented at the June 4 congressional conference ·on lumber.

There· are enough facts and evidence al­ready amassed, in our judgment, for you to initiate action without further delay. This

· we hope you will do, for we want to impress upon you our genuine concern. We urge that the Tariff Commission be instructed under section 332 of the Tariff Act of 1930 to commence immediately to gather the nec­essary information upon which a decision may be reached on the question of whether a tariff or a quota should be applied to lum­ber importation. We recognize that the lumber industry has not yet applied for re­lief, and we understand it is because of fear that this action would close the door on more rapid emergent assistance. The indus­try has been told, however, that this is a necessary step but we Members of Congress do believe that there is a Government re­sponsibility to gather information which can lead to a prompt determination when the industry files such a petition.

It is our hope that this action will not forestall other means of assistance. We earnestly recommend that you consider among other methods of assistance a tem­porary quota on the importation of softwood lumber, based ·on the average annual ship­ments into the United States over the past 10 years.

Such action is recommended only with the clear understanding that any quota would be lifted upon completion of the current study and the establishment of long-term solutions. We recommend this with every expectation of sympathetic understanding from our good neighbor Canada, whose friendship we value and whose motives we respect.

With our best wishes and deepest appreci­~tion for your considered action, and with our fullest understanding of the complex problems before our Nation, we are,

Yours very sincerely, E. Y. BERRY; Republican, of South Da­

kota; DAVE MARTIN, Republican, of Nebraska; JoHN DowDY, Democrat, of Texas; CLIFFORD G. MciNTIRE, Republi­can, of Maine; JoHN J. McFALL, Demo­crat, of California; RALPH HARDING, Democrat, of Idaho; WILLIAM G. BRAY, Republican, of Indiana; HAROLD T. JoHNSON, Democrat, of California; THoR C. ToLLEFSON, Republican, of Washington; GEORGE GRANT, Democrat, of Alabama; DELBERT LATTA, Republi­can, of Ohio;. B. F. SISK, Democrat, of California; DoN MAGNUsoN, Democrat, of Washington; JOHN J. RHODES, Re­publican, of Arizona; JULIA BUTLER HANSEN, Democrat, of Washington; STANLEY R. TuPPER, Republican, of Maine; HAROLD McSwEEN, Democrat, of Louisiana; PAUL C. JoNES, Demo­crat, of Missouri; DON L. SHORT, Re­publican, .at Large, of North Dakota; RoBERT G. STEP,HENS, JR., Democrat, of Georgia; OREN HARRIS, Democrat, of Arkansas; WILLIAM K. VAN PELT, Re­publican, of Wisconsin; CATHERINE MAY, Republican, of Washington; HARLAN HAGEN, Democrat, of Cali­fornia; WALTER NORBLAD, Republican, of Oregon; EDWIN R. DURNO, Republi­can, of Oregon; CLEM MILLER, Demo­crat, of California; ALBERl' -RAINs, Democrat, of Alabama; RALPH J. RIVERS, Democrat, at Large~ of Alaska; JACK WESTLAND, Republican, of Wash-

ing-ton;. GEORGJl HUDDLESTON, JR., Dem­ocrat, of Alabama; CARL ELLIOTT, Democrat, of Alabama; JaHlf E. Moss, JR., Democrat, of ·Call!ornia; RICHARD H. PaFF, Republican, of Virginia; PETER A. GARLAND, Republican, of Maine; THOMAS M. PELLY, Republican, of Washington; JOE D. WAGGONNER, JR., Democrat, of Louisiana; DURWARD G. HALL, Republican, of Missouri; MaRRIS K. UDALL, Democrat, of Arizona; SILVIO 0. CoNTE, Republican, of Massachu­setts; - -WALT HaRAN, Republican, of Washington; ARNOLD OLSEN, Democrat, of Montana; GRACIE PFOST, Democrat, of Idaho.

Mr. Speaker, it seems ironical that within the last few weeks this same group of Members were present when the trade bill was passed by the House with the support of the greater number of the signers.

This note shows the position Congress now finds itself in when injury from im­ports becomes a matter of vital concern to the economy of an area, a State, or the Nation.

We are reducing ourselves to the posi­tion of petitioners in a matter that was exclusively restricted to the membership of Congress for determination by the Founding Fathers.

Those of us who believe in trade when such trade is equitable have often been ridiculed by others who believe other­wise.

I can assure my colleagues that what­ever help I can give is theirs, but I am afraid there is little I can do, or for that matter, little they can do.

Their only hope is that the President, an understanding .Executive, will see that their problem is real, is serious, and a threat to the economy of the Nation as a whole and will give the aid, relief, and assistance they appeal for.

I sincerely believe the President will give this aid. I cannot hope to know or be able to guess what the next President will do.

We can go further in our destruction of certain industries, but I doubt if we can go much faster than under the pro­visions of the new Trade Expansion Act of 1962 if it is administered to its fullest by a Chief Executive lacking the knowl­edge and understanding of our economic system .. In this regard we are fortu­nate that the present Chief Executive is' experienced and comprehends the problem.

It may be well for all of us to take a second look at what happened in our trade agreements and trade relations be­fore opening up the one-way skeet to further tra:ffic.

The next correspondence covers the same subject and shows the universality of the appeals for relief under our trade policies.

If one were to look through the CoN­GRESSIONAL RECORD for the past decade, he would wonder how the trade bill ever received the number of votes necessary for passage.

More Members and more items appear on this subject than on any other single issue before the Congress.

The answer is simple. It is an old military strategy-divide and conquer.

Every time this legislation comes up for consideration specific groups are

given consideration and exemptions. This provides the pressure and the votes for its passage.

The time is near when the injury meted out to the few will become an in­jury to all.

The lumber industry is· only · one of many needing relief.

The above-mentioned correspondence follows:

JULY 5, 1962. Hon. JoHN F. KENNEDY, . President of the United States, White House, Washington, D.C.:

We shall appreciate your giving the fol­lowing matter your prompt policy considera­tion since it affects the lives and industry of thousands of citizens in Oregon and else­where throughout the country.

Our small company: lost its entire capital of approximately $700,000 in its operations during the last 3 years, mainly because of unfair competition from Canadian imports of lumber to the east coast of the United States. Our sawmill at Bradwood, Oreg., represents an original investment approxi­mating $1,500,000. We do an annual volume approximating $3 million and employ ap­proximately 150 people under a nationally approved labor union contract.

Under circumstances completely beyond our control, we just closed our mill and can­not reopen same unless our entire industry receives immediate relief through Executive and congressional action. Our people will be compelled to rely on unemployment in­surance for the next 6 months and, there­after, will be without income, as many more west coast sawmills are closing than new ones are opening: This situation affects tens of thousands of workers and businesses in Oregon, Washington, and California, and other Western States.

Many Senators, Congressmen, and execu­tive Federal Government officials have been considering this matter during the la.st 6 to 12 months, but, so_ far, nothing has been achieved, while the industry is literally bleeding to death. · Notwithstanding all promiscuous discus­

sions, relief at the present time can come, alternatively or cumulatively, only from the following measures promptly taken:

(a) Legislation to exempt sea transporta­tion of lumber from the west coast to the east coast, from the ancient and now com­pletely ineffective Jones Act, which does riot even help the American merchant marine, since the lumber and other products are shipped from Canada on foreign vessels, while Ainerican intercoastal ships are, one by .one, being put out of service.

(b) Establishment of immediate Govern­ment subsidy to American merchant marine hauling lumber from west to east coast, in amounts sufficient to overcome differences between rates of American vessel.s and for­eign-flag vessels.

(c) Establishment of at least a temporary quota system against importation of lumber from Canada to the east coast by cargo ship­ment in quantities completely ·crowding out our own west coast shipments, due to most unfair, unequal, and unequitable competitive conditions.

(d) Immediate Executive order, changing tariff schedule on lumber imported from Can.ada to at least 10 percent of the value of the lumber imported.

We respectfully urge your immediate con­sideration and action in this matter, separate and apart from all other foreign trade ques­tions, since this item is of a most peculiar nature, and merits separate and special and immediate attention. It will be too late for any relief to this industry and its employees after many more west coast sa wmms are closed, dismantled, and sold as junk, and their workers placed on public relief.

14070 CONGRESSIONAL RECORD- HOUSE July 18

If considered appropriate, shall gladly con- • Secretary of State Dean Rusk was of all these things, as well as knowing his firm above facts by sworn testimony before present, as well as Under Secretaries · own country. Now you have to know .au any executive o~ congressional committee at George W. Ball and George c. McGhee. about the United States, every facet of its Washington, at our own expense. The Honorable Charles E Bohlen special life; all the great reforms of the thirties,

Respectfully submitted. . · ' the forties, and the fifties, if you are going ALFRED H. SAcHs assistant to the Secretary of State, and to represent the United States powerfully

Treasurer, Columbia-H1.14son Lu~ber · president of the association, presided and With strength and with vigor. When Co. of Bradwood, . Oreg. and introduced the President to the you represent the United States today, it

Mr. Speaker, my answer is that I read nearl_Y 1,000 persons who attended the is not a question of being accredited to a the special plea for the lumber industry. meetu~g. . . , few people whose tenure is certain, but in­Of course, the time to have had support I tJ;lmk PI.eside~t Ke~edy s remarks ~!e~~;~r:~~i~~;';tes~i~~o~s !~~u~e w:ha; ;1~~ was when the trade bill was up. I have on thiS o~caswn will ~e of mt~rest to per- ments of power or the elements of struggle, supported your position all the way. sons outside the Fore~gn Serv.ICe and I a~ and which way we should move. And this However, your own members are therefore pleased to msert his address m calls for the finest judgment. among those who believe they can get the RECORD. . In the Foreign Service today you have a relief for one segment-their own--of The address follows. great chance and a great opportunity. And our economy and the rest be damned. THE GREAT PERIOD oF THE FoREIGN SERVICE I hope that you recognize it, and realize

that on your decisions hang the well-being For years those of us in coal, glass, (By President John F. Kennedy) and the future of this country.

tool steel, and other affected, injured The Foreign Service, as · all of you know THE PLACE TO . BE IS IN THE KITCHEN industries have been like voices crying was formed, or at least the State Depart­in the wilderness. Now we find our ment was, on July 27, 1789, when George There is a feeling, I think, in the Foreign voices becoming drowned by the anvil Washington signed the act establishing the · Service that the State Department and the

· Department of Foreign Affairs. This act Foreign Service are constantly under attack. chorus of those whose "ox is . being provided that the secretary should .conduct Well, I would give two answers to that. In gored" at the time. the business of the Department, and I quote: the first place, the questions with which you

Insofar as I am personally concerned, "In such manner as the President of the are dealing are so sophisticated and so tech­the policy of giving special relief to a United States shall from time to time order ni.cal that people who are not intimately in­group because of vote power, regardless or instruct." volved week after week, month after month, of the damage inflicted upon others, is That is my mandate to involve myself in reach judgments which are based upon emo-a dead duck. your business and I want to say that I do tion rather than knowledge of the real alter-

! no longer see any merit in fighting not think that there is any responsibility natives. They are bound to disagree and they placed upon the President of the United are bound to focus their attacks upon the

the good fight and then being asked to states, even including that of Commander Department of State and upon the White pass the hat for relief for the people who in Chief, which is more pressing, which is House and upon the President of the United licked me. No thanks; we coal and more powerful, which is more sing~Ilarly States. And, in addition, party division in glassworkers and our friends have taken held in the Executive (as opposed to so many this country, where the parties are split al­our lickings for too long. Our people other powers in the Constitution, which are most evenly, and in spite of the long tradi­are considered expendable, and by the held between Congress and the Executive) tion of bipartisanship, accentuates the criti­sam.e token we, as Members of Congress, than that which is involved in foreign cisms to which the Department of state and

policy. the ·White House are subjected. have been castigated as isolationists, I know that many Foreign Service officers If change were easy, everybody would protectionists, and narrow and parochial feel (like former marines, who believe that change. But if you did not have change, you minded. . the old days were the best days) that the would have revolution. I t:Q.ink that change

What is the difference between ~your . days before World War . II were the golden is what we need in a changing world, and plant closing and your workers being days of the Foreign Service, that since then therefore when we embark on new policies, thrown onto relief than in our glass and the Foreign Service has fallen on hard times we drag along all the anchors of old opinions other industries. and that there is a good deal of uncertainty and old views. You just have to put up with

about what the future may bring. it. Those who cannot stand the heat should Everybody wants free trade for every- I would Hke to differ with that view com- get out of the kitchen. Every Member of

thing they buy but are against it for pletely. In my opinion, today, as never be- Congress who subjects you to abuse is being things they sell. fore, is the golden period of the Foreign subjected himself, every 2 years, to the pos-

I believe I know and sincerely respect Service. sibility that his career also will come to an the feelings and the problems faced by In the days before the war, we dealt with end. He doesn't live a charmed life. You our lumber industry in both the lumber- a few countries and a few leaders. I re- have to remember that the hot breath is on fng as well as plywood sections of this member what Ambassador Dawes said, that him also, and it is on the Senate, and it is important phase of our industrial the job was hard on the feet and easy on on the President, and it is on everyone who

the brain. Theodore Roosevelt talked about deals with great matters. complex. those who resided in the Foreign Service This is not an easy career to be a Foreign

"The Great Period of the Foreign Service," an Address by President John F. Kennedy to the American Foreign Service Association, May 31, 1962

EXTENSION OF REMARKS OF

HON. JOHN BRADEMAS OF INDIANA

IN THE HOUSE OF REPRESENTATIVES

Wednesday, July 18, 1962

Mr. BRADEMAS. Mr. Speaker, on May 21, 1962, President Kennedy ad­dressed the members of the American Foreign Service Association in Washing­ton, D.C., on the subject, "The Great Period of the Foreign Service."

This was the first time in history that a President of the United States has addressed the American Foreign Service Association.

rather than working in it. We were an Service officer. It is not an e~y life. The isolationist country, by tradition and by Foreign Service and the White House are policy and by statute. And therefore those bound to be in the center of every great con­of you who lived in the Foreign Service led troversy involving the security of the United a rather isolated life, dealing with compara- States, and there is nothing you can do tively few people, uninvolved in the affairs about it. You have to recognize that ulti­o! this country or in many ways in the af- mately you wm be subjected, as an institu­fairs of the country to which you may have tion, to the criticisms of the uninformed, been accredited. and to attacks which are in many cases mali-

THE FOREIGN SERVICE A GREAT OPPORTUNITY CiOUS and in many CaSeS Self-serving. But That is all changed now. The power .and ' el,ther you have to be able· to put up ,with it,

irifluence of the United States are involved or you have to pick a more secluded spot. in the national life of dozens of countries Personally, I think the place to be is in the that did not exist before 1945, many of which kitchen, and I am sure the Foreign Serv­are so hard pressed. ice officers of the United States feel the

This is the great period of the Foreign same ":'ay. . Service, mUCh greater than any period that · CAREER VERSUS NONCAREER

has gone before. And 1t will be so through One of the other points which I know is this decade, and perhaps even more in the of concern, is this question of career versus years to came if we are able to maintain our- noncareer. selves with success. The pressures which come upon a Presi-

But it places the heaviest burdens upon dent, as you know, are many. We try to do all of you. Instead of becoming merely ex- our best in picking the best man available. perts in diplomatic history, or in current We have a higher percentage of ambassa­clippings from the New York Times, now you doria! posts occupied by career men, 68 per­have to involve yourselves in every element cent, than at almost any time in this cen­of foreign life--labor, the class struggle, cui- tury, with the exception of a few months at tural affairs and all the rest-attempting the end of 1959. to pr~dict in what direction the forces will My own feeling is that there is a place for move. The ambassador· has to be the master the noncareer- ambassador-not for political

"1962 CONGRESSIONAL RECORD- HOUSE 14071 reasons, but when he happens to be the best man avad.lable. ·For. example, Mr. Reischa.uer happens to have special skills in Japan; he has a knowledge of Japanese . and, of the history of the country,. and he has a. Japa­nese wife. I had only met Mr. Reischa.uer when he came to call on me to go to Japan. But his was a. distinguished appointment, and to a. country which has an intellectual tradition. My feeling is we should send ca­reer men, to the maximum extent possible, unless there happen to .be special skills which a noncareer officer holds.

On the other hand, the career men them­selves have to be of the best qua.li ty. You cannot expect any President or Secretary of State, merely to please the career officers, to send a. career officer to a. post if he is not the best. He should be the best. After 10 · or 20 years in the Service, he should be the best, in la.nguag~. in knowledge, in experience. He should be able "to stand up to any compe­tition. If we get the best we can get in the Foreign Service at the beginning, every post will go to a. Foreign Service officer. I am sure that all a Foreign Service officer asks fs to be judged fairly·, without bringing in ex­traneous circumstances, on this basis of judg­ment: Who is the best man for that post at that time, given the situation in the United States and the situation in that .country? That should be the standard.

Now in some cases it will be a noncareer appointment, but in many cases, in my judg­ment, we will end up with the best man available, and he w111 be a. Foreign Service officer.

Lastly, I want to say one word about the next year or so. We are in a very changing period. Our policies are changfng, and should change, and we are very much de-

. pendent upon the Department of State for action, for speed, for judgment, and for ideas: I know the difficulty of attempting to clear policy and of coordinating it between the Department of State, the CIA, the De­fense Department, the White House, the Ex­port-Import Bank, the Treasury Department, the Department of Commerce, and the Con­gress. But nevertheless, it does seem to me that in the days that are coming, we want, first, action in ·the sense that we should bring these matters to a head and do it with speed if we ·can. And still more, we· need a sense of responsibility and judgment in order to get the work out--not action for ac­tion's sake. We must not become so en­meshed in our bureaucracy that four or five overburdened men make decisions which should come from the Department itself with some speed and action.

cause you today-even more than any other the record showed, but did not come out un­bra.nch of government-are in the front line til the ~ttee hearings June 28, 1962. in every country of the world, lt was ordered by Kenneth BeLieu, Assist-

Chicago and Indianapolis Newspapermen Detail· Navy's Indictment by Sub­committee

EXTENSION OF REMARKS OF

HON. EARL WILSON OF INDIAN~

ant Secreta.ry of the · Navy for Supply and Logistics. l

The hearing report called the new proce­dure a "secret policy, of doubtful legality and irregular in its origin." ·

The flve-mari subcommittee, headed by Representative F. EDWARD HEBERT, Democrat, of Louisiana., said it denounces and con­demns the action of the Navy in setting up the policy withoUt notice to anyone, includ­ing the Secretary of Defense.

The report noted sarcastically that "we are asked to· believe that this policy expresses a compassionate interest in saving .prospec­tive bidders from spending money" need­lessly by bidding on jobs the Navy didn't want them to have.

At the time the policy came to light at the Mr. WILSON of Indiana. Mr. Speak- hearfngs, HEBERT suggested "that you instead

er, as long as we have newspapermen let the companies involved worry about sav­who take the time to dig into a story to ing money, and thaJt you worry about saving

the taxpayers' money by permitting com-

IN THE HOUSE OF REPRESENTATIVES

Wednesday, July 18, 1962

learn the facts, freedom of the Ameri- petition." can press is indeed in safe hands. Too The hearings were called after Repre­often we hear of reporters who make sentative EARL WILsoN, Republican, of In­only a cursory pr biased examination of . diana, charged that the Navy was funneling material that passes through their this and other contracts to favored firms h d Th to · 'tt at exorbitant prices.

an s. · e news S nes Wrl en by Marine Commandant David Shoup testi-these people pale by comparison when fled that the radio, a walkie-talkie unit, is placed alongside a news account written critically needed by his forces for effective by a sincere and dedicated newspaper- ground-air communication, to replace less man. satisfactory units now in use that are up · Such a story has just been unfolded to 13 years old. by Charles Nicodemus, of the Chicago Collins, paid by the Navy to develop the Daily News, about whom -I spoke on the radio, offered to take the production job

for $4,373,546. WILSON obtained a bid from floor of this House last Friday, July 13, Arvin Industries, ColumbuS, Ind., a. na.-1962, and Ben Cole, of the Indianapolis tionally knowri manufacturer, for $1.3 mil­Star. liori less. But the Navy has refused. to con-

Mr. Nicodemus covered the recent sider it. hearings by the Armed Services Special The Hebert report rapped the procedure Investigating Subcommittee. He at- tn which low-ranking Ni:..vy officials made tended all the sessions. He took notes. the key "sole source" decision, with higher He read the documents. He· talked to echelons merely providing routine review. the principals. I think it is safe to say In suggesting a "rubberstamp" situation,

the committee noted that "no step was by-he had a thorough, working knowledge passed in the movement of papers," and "all of this case and of the hearings, the words were present."

His news account of the committee re- But "the same ·tired phrasing leaves a port is certainly excellent and I . think little chill behind it," the report ·said. should be required reading for all news- 'i'he report raised · the point that there paper people. It is just another example is "some dispute" as to whether engineering of how a little enthusiasm and elbow changes sought in the radio. by the Marines

· had been worked into the contract by the grease helps to do a good job. ·Na.vy~lea.ving the door open to further . I insert at this point in my remarks price adjustments with Collins. Mr. -Nicodemus' story on the PRC-41 As- for the Navy's contention that Col­radio hearings from the Chicago Daily lins, as the radio's developer, was in the

THE BEST PERIOD TO BE A FOREIGN SERVICE ·NeWS Of July 18 and think it iS an eX- best position to produce it rapidly to meet oFFICER cellent summation of what the subcom- the Marines' emergency, the report sarca.s-

Another point, of course, is that we should mittee brought out. ·tically suggested: have, at least at the White House, Depart- "A means must be found to introduce ment of State, and Secretary of State levels, PRO R~DIO HEARINGS light and air" into Navy procurement, "so evidence of dissent and controversy. We (By Charles Nicodemus) that .the conclusion of a successful develop-have had some new ideas in the last year in WASHINGTON, July 18.-A House investi- ment contract will not coincide so perfectly foreign polipy; some new approaches have gating subcommittee's report today ripped with an urgent requirement." ' been made. We want them to come out of into Navy buying practices and attacked Mr. Cole also covered the hearings on the State Department with more speed. plans to award a $4 million contract for a the PRC-4! and has also been quite What opportunities do_ we have to improve marine radio without bids. our policies abroad? How, for example can The report also raked the Navy for secretly diligent in familiarizing_ himself with we make the Alliance for Progress more ef- . changing its procurement policies to permit the details of this case. - He summarized fective? we are waiting for you to come for- officials to acpept bids on certain contracts the case in the Indianapolis Star of ward, because we want you to know that I only from favored firms. July-18, 1962. In my opinion, Mr. Cole regard the Office of the Presidency and the In phrases that were sometimes sarcastic, also did a fair and impartial reporting ·White House, and the secretary of state and sometimes blunt or caustic, the speciai in,- job, even though his summation was not the Department, as part of one chain, not vestigations unLt ·of the House Armed Serv- as lengthy or detailed as_ that of Mr.

ices· Cominittee said i·ts hearings showed that. N' od separate but united, and committed to the other_ ~~petent manufacturers could have l,C emus; . maintenance of an effective foreign policy submitted negotiable proposals on the radio · Mr. Coles story follows. . for the United States of America. contract. . . COMPETITION IN BIDS URGED BY HOUSE UNIT

Therefore, In the final analysis, it depends Instead, th~ Navy plaJ1.S to _award the job WASHINGTON.-A House Armed Services on you. . tQ Collins Radio Co., Cedar Rapids, Iowa, as Subcommitt~ filed a. report yesterday press-

That is why I believe this is, the best period the .role. SOll-fce the Navy' says can supply the ing for more coil) petition in bids on Navy to be a Foreign Service officer. That "is why · radios as fast as the marines need them. electronic gea_r. I believe that the best talent that we· have . _:I'he unpublicized policy switc:h, curbing The· subcommittee under . Chairman ED-should come into . the Foreign s~rvice, be- ... ~ompetiti~n. was· made _ in September 1~1 wARD Hi:BERT, -Democrat of Louisiana., filed

14072 CONGRESSIONAL . RECORD-· SENATE July 19

the report on an investigation lt made into charges ·by Representative EAaL WILSON,

Republlcan. of Indiana. , Wn.soN Imputed eollusion and crimlnai

conspiracy to Navy oftlcials in connection with · a ·$4 million order for ground-to-air field radios ordered from Collins Radio Corp., Cedar Rapids, Iowa. ·

The Cong~an said the Arvin Indus­tries ·Corp., ColUmbus, Ind., submitted a sample bid $1.1 mlliion lower.

The subcommittee recommended that: 1. Legislation be · enacted placing sole­

source contract negotiations under scrutiny of the General Accounting omce. ·

2. The Secretaries of Defense and the Navy use procedures to prevent unauthorized adoption of. bidding regulations.

The subcommittee recognized that in some instances sole-source procurement was necessary. It also found Collins received Navy contracts on account of its perform­ance record.

The Navy unnecessarily kept secret some of its ]l011cles, thereby raising suspicions, the subcommittee found, and it criticized the Navy for .changing its poUcy so as to deny requests to bids made by competitive firms. ·

Proper procedures were followed but the subcommittee questioned some details of the methods used. -

The panel criticized the Navy for somehow permitting information contained in the Colllna proposal to be turned over to the Arvin firm.

AB a footnote, I should like to inform the Members of the House that, faced with a caustic report from the subcom­mittee the Secr:etary of the Navy today awarded the contract for production of the AN /PRC 41 sole source to Collins

. Radio Co. As I said in my newsletter last week-"Damn the Dollars-Full Speed Ahead."

I include that newsletter at this point in the RECORD.

lNsi!lll WASHINGTON

{By Congressman EARL WILSON) {~or the week of July 16, 1962)

DAMN THE DOLLARS--FULL SPEED AHEAD

RevJewtng my notes on the rece:ot naval proeuremen t .hearings by the Armed. Berv-lees Special Inv.estigation Subcommittee, l found a paraphrase of Adm. David Farra­gut's famed statement. I had written .. Damn the Dollars--Full Speed Ahead." This best describes the Navy attitude toward 'Spen<ling your tax money.

J:t was r.ather disheartening for an Indiana. farm boy to be asked to sit with a committee and then be denied the right to interrogate witnesses, knowing that a strong cas.e could be made .against .scattering tax dolla.ra to the winds ·if only the right questions were asked..

SENATE THURSDAY, JULY 19, 1962

Tb.e Senate met at 11 o'clock ain., and was called to order by the President . pro tempore.

The Chaplain, Rev. Frederick Brown Harris, D.D:• offered the following pray­er:

Most merciful God, our Father, Thou hast decreed that our faltering dust is linked to eternal destiny. · · :

As we· stand in these fields of earthly toil, we bow our heads to listen in rever­ence to distant bells which speak of our

· I ·was gra~lfled. when the Na'fY, in 11. 2lnal statement, admitted tbat pollcy changes have been kept secret. I was beartened. to hear its pledg~ that this won't happen again, but I jotted down th.i8 note-"How many m1111ons have been poured down a ra thole in the past as a result of these .secret changes and agreements?"

BILLIONS, .BLUNDERS, BALONEY

This was another note I found-my sum­mation of the net result of the hearing. Bil­lions are being wasted. Blunders are being made by the carload. Baloney is used to ra­tionalize all the mistakes. In this particular hearing a single official wrapped himself in the flag and tried to assume full responsibil­ity for ,subordlnates' mistakes that .cost the taxpayers $1.3 million. This official, Kenneth M. BeLieu, admitted a company had been paid over $800,000 to develop a walkie-talkie radio and then was told to keep all the plans and drawings. Later the same com­pany was the only one asked to bid on production of the radio. Yet it was proven before the committee that another highly reputable firm could save the taxpayer 34 percent in production of this radio wlthout this $800,000 head ·start or any favored treat­ment. These facts alone prove bad judg­ment of those who justified this procurement as sole-source, and this 1nefftciency cannot be rationalized by a war record. or by flag waving.

Ask yourself, "Wha-t would happen if a township, county, city, or the State of Indi­ana itself allowed no competitive bi~ding and awarded contracts only to favored sup­pliers?" The answer ts obvious-higher budge.ts, higher taxes, graft, payoffs and jockeying by .suppliers to gain favored posi­tions.

N:'NAMARA AGREES

While I was denied the right to interro­gate witnesses {the only way I could have helped uncover the truth), I still feel much good will be found m the committee report now coming off the press.

secretary of Defense Robert McNamara has already made a statement that by having more competitive bidding at least $3 bllllon a year can be saved on defense. I agree, ex­cept that I think much more than $3 b111ion 1s already b~ing wasted and much more than $3 btlllon can be saved with frugal procure.:. ment methods.

HOPE FOR THE FUTURE

The walkie-talkie case in which a con­tract had not been awarded was selected by the subcommittee to develop support for an amendment to the Armed Forces Procure­ment Act (a change I have been support­ing vigo,rously). This amendment gives an agency outside the military .authority to pass on sole-source contracts before they're let. The Committee has on file eight more cases I have supplied. 1: am preparing more-some as bad as the first, others even worse.

kinship with the eternal, making us con­scious, even in the drab surroundings of time and sense, of the divine reality which breaks through tl1-e seen in bright .shoots of everlastingness. . In the dauntle.ss faith, illumining the

. future's broadening way~ that Thou art in the .shadows and behind the shadows. invest and undergird, we pray, the daily labor of Thy servants in this Chamber of national deliberation with a Tadiance · which in all their working days will make their spirits like lighted torches from which others can rekindle their dying :flame of .courage. . -

We ask it in the name of the One whose life is t?e light of men. Amen.

To probe . further into the first case with­out .havlng the authority to a.ak. questions, to :reveal all.my informa-tion ·without ~ving authoritY' to protect my sources (other than the General Accounting omce~ would only dry up these sources and cost some people their jobs. I have recehed much informa­tion in which I have great · confidence. Turned over to the same authority being investigated, the source .of this information could dry up, and in reprisal some might lose their jobs.

TAIL WAGGING DOG

· The Defense Procurement Act of 1947 which · permits sole-source buying was thoroughly questioned and debated before passage. The sole-source section which gives comple~e authority to the mllltary was seriously questioned by President Harry Tiuman before he signed it into law. He is reported to have said, "This is a bad practice and .will soon result in the tail wagging the dog." These prophetic words, which sound like the man who headed the Truman Investigating Committee before he became President, have certainly come true.

DGLLAllS OVER THE DAK

Mr. T.axpayer, you have been taken for billions. Your only present hope is that the Hebert amendment becomes law. Alr~ady it is being resisted by the power-minded mll1-tary which fights with every weapon at its command any attempt to check its policy· of "spendola."

It must also be recognized that the mili­tary has created a protective labyrinth of redtape and overlapping authority hidden by mountains of paperwork that makes it almost impossible to pinpoint responsible individuals. The mllltary can always quote a secret policy change or produce a paper to rationalize its gross inefficiency. Congress knows about this waste. Representative CLEMENT J. ZABLOCKI .said on the House floor July 11: "We have wasted mlllions in our Defense Department on exorbitant profits allowed certain manufacturers, on ineftlcient procurement and on the production of mili­tary hardware which becomes obsolete the .minute it comes off the line." The Congress realizes the futility of trying to uncover those responsible for this waste. It is cov­ered with .an .ever thickening layer of bu­reaucracy which has increasing powers of .reprisal, largesse and varieties of influence.

CONCLUSION: YOU GET IT IN THE NECK

Thirty-one cents of every dollar you earn or 2 hours and 29 minutes of every day's work goes to support your Government. I am sure no American taxpayer will object so long as he gets a dollar's worth of benefit for a dollar spent. It has always been my -goal to see that you get as close to that value as possible. I want to pledge to you that I shall continue in that direction. My military procurement study is just one of thGse eJiorts.

THE JOURNAL On request of Mr. MANsFIELD, and by

unanimous consent, the reading of the Journal of the proceedings of Wednes­day, July 18, 1962, was dispensed with . .

MESSAGE FROM THE HOUSE

A message from the House of Repre­sentatives, by Mr. Maurer, one of its

. reading clerks, announced that the House had passed a bill <H.R. 12135) to au­thorize ·appropriations · for the fiscal

. years 196~ and ~9_6~ for. the construction of certain highways in accordance with