across the oceans with full or almost fully loaded planes instead of, as frequently now occurs, planes half or two-thirds empty.

U.S.-flag carriers of the International Air Transport Association know this and have indicated clearly that they favor substantial reductions in the level of scheduled rates.

This would, I am convinced, be a boon to travel agencies around the world. If there is a realistic cutback in air fares available to all members of the traveling public, the vast untapped market existing in the many countries represented here at this meeting will find new encouragement and incentive to patronize your agencies and book passage on fast modern jets to other parts of the world.

Air carrier capacity during the past 3 years has increased faster than the gain in passengers. From 1959 through 1962 capacity across the North Atlantic increased 20.1 percent while the average traffic increase was 12.8 percent.

To encourage increased travel some airlines have been offering promotional fares in accordance with IATA's policy which requires participation by a select segment of the traveling public as a prerequisite to a fare reduction. This is a discriminatory, diversionary and irrational policy which, in my opinion, can only serve to defeat its purpose.

I am in complete agreement with the American Society of Travel Agents and the Civil Aeronautics Board when they advocate the principle that only those fares which are available on a nondiscriminatory basis and thus allow participation by all members of the traveling public are equitable and beneficial to the industry.

It is encouraging to note in this connection that Chairman Boyd of the Civil Aeronautics Board has endorsed the principle of basic charter rates and has intimated that the Board will not indefinitely continue to approve affinity tests in the granting of fare reductions.

The Senate committee of which I am chairman also is concerned with the increasing number of parties that have been stranded on charter flights during the past

season.

From the reports of these strandings which have come to us, it is apparent that the fault does not lie with the responsible and reliable members of the travel agency industry and the airlines industry, but with fringe operators who prey upon an unknowing and unsophisticated public.

In some respects they resemble the "blue sky and bucket shop" operators of the past who unloaded worthless land or stock on the gullible until their activities were curbed by legislation.

The primary duty of the Congress, and of the Committee on Commerce as I see it, is to protect the public, and it is for that reason that the committee is presently contemplating legislation which would ban the fraudulent sale of air transportation.

Members of the committee staff are consulting with the American Society of Travel Agents, the Civil Aeronautics Board and other agencies of Federal Government, and with the industry on appropriate legislation which will assure performance with the purchase of air transportation. You will be happy to know that we are making good progress toward perfecting this proposed legislation.

In conclusion, let me express my appreciation for the opportunity to participate in this 33d annual convention and world congress, and to thank the good citizens of Mexico and its national city for the friendly hospitality they have shown to me.

The theme of this congress is "Promise of the Future." The promise of the future, as all of you here attending this conclave know, is progress,

To me it applies not only to the future of national and international travel and

tourism, but to the progress of my own country, our delightful host country, and to all countries of this hemisphere which are dedicated, as I know ours is, to progress with freedom.

Freedom is the key to promise and progress as all nations should know who fought their way out of colonialism as did the United States, Mexico, and most other nations of this hemisphere.

And one of the great freedoms-as I mentioned earlier-is the freedom to travelthe freedom to go and come when one chooses-a freedom that does not exist when a country is under foreign domination, no more than it exists today in Cuba.

Freedom to travel is in many ways kin to those other freedoms we are so proud of— freedom of speech, freedom of the press, freedom of peaceful assembly and petition.

They have their origins in the same aspirations, and when one falls all fall together, as this generation has witnessed behind the Iron Curtain and in one unfortunate west

SPEECH BY MILTON A. MARKS ON A WORLD BODY OF TRAVEL AGENTS MEMBERSHIP RELATIONS SESSION, OCTOBER 25, 1963

By its very nature a trade associationsuch as ASTA-necessarily resembles a living organism. It was created by human beings and like a human being it has its periods of depression-enjoys its moments of triumphbut most important of all, it is the instrument through which it achieves its own hopes and aspirations for something beyond business success.

ASTA has experienced the trials of infancy and the tribulations of adolescence. Now, here in Mexico City at its 33d convention, we have been meeting in the strength and wisdom of maturity.

Quite naturally, because of our preoccupation with details of programing and consideration of society problems, it is difficult for your officers and directors to properly evaluate the effectiveness of this convention. We have sought not only to give you a report of our stewardship but have been frank in our own self-criticism.

Through sessions such as this, you have told us of your views concerning common problems and thus have given your management the benefit of your experience and wisdom.

Spokesmen for the industries have described their plans. This convention has provided the necessary and vital forum for an exchange of ideas, the renewal of old and creation of new friendships.

You are the sole judge of whether we have, even in a small measure, been successful in our undertaking.

But, I want you to know that all of us— our headquarters staff, your officers, your directors, and your hosts, have given their best to make this convention a memorable occasion.

But now we are 33-no longer are we stumbling children, no longer can we remain youths preoccupied alone with the problems of day-to-day existence and the struggle for survival.

We must look beyond this. If it is for us here to build together so that future generations of members will be able to say-and say proudly-that those who formed this society built well-thought of the future and were not concerned solely with selfish aims.

We have been presented with an opportunity-not of our own seeking; not of our

own creation-to build an entity which will be of service to travel agents and thus to people everywhere, in every country, and on every continent.

Through our efforts we can successfully initiate a task which will raise further the ethical concepts and practices of our industry brethren everywhere.

To us, in ASTA, has been given the challenge to us, in ASTA, is entrusted the assignment of initiating an undertaking which eventually may prove to be the single greatest accomplishment of this convention.

All of you, through the years, have heard talk-much talk-concerning the desirability of a world body of travel agents which not only will stimulate the desire for individual excellence but serve as its common, strong-voiced spokesman.

This task was not of our seeking.

It is not the idea of a single individual.

It is the natural reaction to the basic fact that the travel agent, by virtue of his day-to-day occupation and the role he plays in the international economy provides the best catalytic agent for the realization of the universal desire of people for friendship and understanding.

Because we are businessmen, because we are believed to be hardheaded and practical, we are not beguiled by fancy words or subject to the intoxication of slogans and catchwords.

We have been presented with a practical opportunity to achieve this objective. We, in the travel agency industry, can provide a powerful instrument-can be an important channel to facilitate humanity's common purpose.

ASTA was presented with the challenge by innumerable distinguished representatives of national and regional organizations as a result of the United Nations Conference on Tourism in Rome.

All urged that some group, someplace, take the initiative in arranging a conference where the idea for a world body of travel agents represented by their own national or regional associations—and notand this I cannot emphasize too stronglyand not a world body of individual travel agents but bona fide, genuine groups possessing stature and reflecting united interests. For, they said, no individuals but only such bona fide, genuine national associations can speak with potent force and honestly represent all.

Time after time, spokesman after spokesman stressed two basic points as requisite to success:

No world body can be composed of both national organizations and individual travel agents.

Success can be achieved only through a new start a fresh approach based upon complete disentanglement from the old, impotent, self-serving and statureless organizations who presume to speak for worldwide travel agents.

Each one urging the creation of a new world body specifically pointed to the need for a fresh start. They told how, after World War II, this was achieved by deliberately abandoning the old, existing, nonfunctioning League of Nations and creating the United Nations. It is the pertinent-the historic example.

All wanted a new vehicle which would adequately represent the best interests, the highest ethical concepts of the professional travel agent.

But who or what was to be the instrument through which this could be accomplished? It is with pardonable pride that I report to you that it was ASTA-your organization-that was repeatedly designated as the logical instrument to undertake the initiatory task.

While obviously flattered by this tribute to your society's reputation for ability and recognition of its stature in the world com

munity of travel agents, I frankly stated that I, as an individual, could not presume to make any promises or take a position until I had a consensus of your officers.

I conferred with your officers-obtained their frank expressions as to the desirability of such an undertaking—and made a careful and detailed study of all the pros and cons. We had as a strong warning the dismal record of failures of the past and woeful consequences of permitting the existence of a vacuum which served as an invitation for sterile, self-serving bureaucrats.

The organization of a functioning worldwide body calls for greatness-the placing of the common good above personal ambitions and salaried sinecures.

It demands comprehension of local and regional problems; of dedication to the highest and most worthwhile objectives.

We recognize that the demand for an international organization does exist.

The time for effective action is now if we are to realize the promise of the future.

As a result of this decision, ASTA-on October 15-sent letters to 45 national and regional organizations of travel agents inviting them to attend a meeting early in 1964 to consider the organization of a World Body of Travel Agents.

Each letter was accompanied by a questionnaire soliciting their preferences as to the time and location of such a meeting.

To assure that no such group would be overlooked, ASTA requested that the recipients of the invitation suggest names of other bodies which should be present.

Because of the recency of the invitation, it is impossible on this occasion-to report the number of acceptances; however, all indications are that there will be widespread

response.

This is a formidable task which ASTA has undertaken.

It requires limitless patience and a comprehensive catalog of talents and skills far beyond the capabilities of any one individual. Fortunately for our purpose and assuring success, ASTA is the repository of such qualifications.

To serve as ASTA's World Body Advisory Committee, ASTA has called upon its elder statesmen-its veterans who not only are wise in experience but animated by understanding and dedicated to the welfare of all.

This is a committee which will include five of our past presidents: R. F. Kerr, R. W. Hemphill, T. J. Donovan, Dr. L. C. Tombs, and Newell Grinnell.

For the information of our more recent members I need but highlight their services to obtain your enthusiastic support for this committee.

Dick Kerr's experience has been worldwide. English born, he began his travel career with Thoms Cook & Sons. During World War II, he performed acclaimed services as San Francisco's representative of the Australian Government. He is owner of Kerr Travel Service, in Beverly Hills, Calif.

Bert Hemphill is known as the most widely traveled man of this generation. He served Air Transport Command in World War II. in the Navy during World War I and in the Through his visits to more than 190 coun

tries and territories he has a firsthand

knowledge of regional and local problems. He has kept in intimate touch with these through Hemphill Travel Service, Inc., of Los Angeles, which specializes in unusual travel.

Tom Donovan, president of Cartan Travel Bureau, Chicago, possesses an almost unequaled knowledge of international travel problems with specialization in the successbackground will prove of great value. ful operation of escorted tours. His legal

Montreal, not only has the distinction of Dr. Tombs, president of Guy Tombs, Ltd., having been a member of ASTA's board of directors when we last met in Mexico City, 14 years ago, but has served almost for the

same period as Consul General for Finland in Montreal. He long has been dedicated to the idea of an international body and his services as general chairman of the first ASTA World Congress in Paris in 1951 were outstanding.

Newell Grinnell has a detailed knowledge of international affairs through his continuing experience in solving the problems of ASTA members in their relations with hotels everywhere. As president of Kalbfleisch Travel Agency of Rochester he is an acknowledged expert on a wide range of problems.

Thus you can see we have chosen well. We recognize that we have presented them with a task formidable in complexity and difficult of successful conclusion because of the myriad of national and international problems.

Their task is compounded by the existing rivalries and jealousies.

We recognize that the path will be long and complex.

ASTA has only one point upon which it is adamant. The world body must be a democratic institution with one vote for each national association which adheres to the charter when and if it is adopted.

ASTA was faced with an inescapable decision in agreeing to the insistent worldwide demand for order and cooperation in the portant by the complexities of a growing travel agency industry-made even more iminternational tourism in which our own Nation is participating.

There must be an end to the present chaos. There must be a code of ethics to which all reputable and responsible travel agents shall not only subscribe but adhere.

Only through such a functioning world body can the problems and the contributions of the travel agent receive the serious consideration which his services warrant.

Animated by a consciousness of the importance of our undertaking, ASTA shall exert every effort to reach this goal.

SENATE

TUESDAY, NOVEMBER 5, 1963 (Legislative day of Tuesday, October 22, 1963)

The Senate met at 12 o'clock meridian, on the expiration of the recess, and was called to order by Hon. LEE METCALF, a Senator from the State of Montana.

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

O God, who commandest the morning: At this noontide altar we commit into Thy hands our wills and our work, in calm confidence that Thou art in the shadows, and behind them, working out Thy purposes for mankind, Thy children.

Day by day set our feet on the shining path of righteous duty and selfless service.

In these days wherein the souls of men who seek the right and follow truth are sorely tried, when so much is demanded of those who would serve the present age, grant to the Members of this body of governance strength and grace that they may prove worthy of every trust the Nation has committed to their hands, as on the anvil of momentous issues there slowly is hammered into shape the new and better world that is to be when Thy will is done and Thy kingdom comes.

In the Redeemer's name we ask it. Amen.

from the President of the United States submitting sundry nominations, which was referred to the Committee on Armed Services.

(For nominations this day received, see the end of Senate proceedings.)

MESSAGE FROM THE HOUSE

sentatives, by Mr. Hackney, one of its A message from the House of Reprereading clerks, announced that the House had passed the following bills and the concurrence of the Senate: joint resolution, in which it requested

H.R. 1414. An act for the relief of Jan and Anna Smal (nee Dworzanski);

H.R. 1887. An act for the relief of Yon Ok Kim, Chang In Wu, and Jung Yol Sohn;

H.R. 3368. An act to authorize the Admin

istrator of General Services to convey by quitclaim deed a parcel of land to the Lexington Park Volunteer Fire Department, Inc.;

H.R. 3735. An act to set aside certain lands in Montana for the Indians of the Confederated Salish and Kootenai Tribes of the Flathead Reservation, Mont.;

H.R. 4801. An act to amend subsection 506

(d) of the Federal Property and Administrative Services Act of 1949, as amended, regarding certification of facts based upon

transferred records;

H.R. 4862. An act for the relief of Tricia

Kim;

H.R. 6975. An act for the relief of Giuseppe Maida, his wife, Caterina Maida, and their children, Antonio and Vittoria Maida;

H.R. 7268. An act for the relief of Mrs. Ingrid Gudrun Schroder Brown; and

H.J. Res. 778. Joint resolution to provide for participation by the Government of the United States in the Hague Conference on Private International Law and the Inter

national (Rome) Institute for the Unification of Private Law, and authorizing appropriations therefor.

HOUSE BILLS AND JOINT RESOLUTION REFERRED

The following bills and joint resolution were severally read twice by their titles and referred as indicated:

H.R. 1414. An act for the relief of Jan and Anna Smal (nee Dworzanski);

H.R. 1887. An act for the relief of Yon Ok Kim, Chang In Wu, and Jung Yol Sohn;

H.R. 4862. An act for the relief of Tricia Kim;

H.R. 6975. An act for the relief of Giuseppe

Maida. his wife, Caterina Maida, and their children, Antonio, and Vittoria Maida; and

H.R. 7268. An act for the relief of Mrs. In

ANNUAL MEETING DATE FOR

NATIONAL BANKS

The bill (S. 2228) to change the requirements for the annual meeting date for national banks was considered, ordered to be engrossed for a third reading, was read the third time, and passed, as follows:

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the first sentence of section 5145 of the Revised Statutes (12 U.S.C. 71) is amended by striking out all after the semicolon and inserting in lieu thereof "and afterward at meetings to be held on such day of each year as is specified therefor in the bylaws."

SEC. 2. The first sentence of section 5149 of the Revised Statutes (12 U.S.C. 75) is amended by striking out "articles of association" and inserting in lieu thereof "bylaws".

H.R. 3368. An act to authorize the Administrator of General Services to convey by quitclaim deed a parcel of land to the Lexington Park Volunteer Fire Department, Inc.;

and

H.R. 4801. An act to amend subsection 506 (d) of the Federal Property and Administrative Services Act of 1949, as amended, regarding certification of facts based upon transferred records; to the Committee on Government Operations.

H.R. 3735. An act to set aside certain lands in Montana for the Indians of the Confederated Salish and Kootenai Tribes of the Flat

head Reservation, Mont.; to the Committee

on Interior and Insular Affairs.

H.J. Res. 778. Joint resolution to provide

for participation by the Government of the United States in the Hague Conference on Private International Law and the International (Rome) Institute for the Unification of Private Law, and authorizing appropriations therefor; to the Committee on Foreign

Relations.

TRANSACTION OF ROUTINE
BUSINESS

On request of Mr. MANSFIELD, and by unanimous consent, it was ordered that there be a morning hour, with statements limited to 3 minutes.

COMMITTEE MEETING DURING SENATE SESSION

On request of Mr. MANSFIELD, and by unanimous consent, the Committee on the District of Columbia was authorized to meet during the session of the Senate today.

THE CALENDAR

Mr. MANSFIELD. Mr. President, after clearing this matter with the interested Senators, I wish to call up at this time, if I may, a number of calendar measures to which there is no objection, beginning with Calendar No. 600, Senate bill 2228. The last of the group involves a time limitation. I would suggest that the Senate concurring-we consider these calendar measures in sequence, beginning with Calendar No. 600. The ACTING PRESIDENT pro tempore. Without objection, it is so ordered; and the clerk will proceed to call these calendar measures.

(No. 622), explaining the purposes of the bill.

There being no objection, the excerpt was ordered to be printed in the RECORD, as follows:

The Committee on Banking and Currency, to whom was referred the bill (S. 2228) to change the requirements for the annual meeting date for national banks, having considered the same, report favorably thereon without amendment and recommend that the bill do pass.

Under sections 5145 and 5149 of the Revised Statutes (12 U.S.C. 71 and 75) annual meetings of national banks must be held on such

pressed his disagreement with the statutory requirement that national banks must hold their annual meetings in January and indicated that an amendment to this requirement was being prepared (hearings on S. 1642, 88th Cong., 1st sess., p. 177).

The proposal was transmitted to the Congress by the Secretary of the Treasury on October 2, 1963. A copy of the Secretary of the Treasury's letter is printed at the end of this report.

The American Bankers Association has advised the committee that it supports S. 2228. A copy of a letter from Mr. Walter A. Schlechte, president of the National Bank Division of the American Bankers Association, expressing its support for the bill, is printed at the end of this report.

ANNUITIES OF WIDOWS OF SU

PREME COURT JUSTICES The Senate proceeded to consider the bill (S. 1686) to amend section 375 of title 28 of the United States Code, relating to the annuities of widows of Supreme Court Justices, which had been reported from the Committee on the Judiciary with an amendment after line 7, to insert a new section, as follows:

SEC. 2. The amendment made by this Act shall take effect with respect to annuity payments made beginning with the first month beginning after the date of enactment of

this Act.

So as to make the bill read:

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 375 of title 28 of the United States Code, as

therefor in the articles of association. S. 2228 would amend these sections so as to authorize national banks to hold meetings on any date in the year which may be specified in the bank's bylaws.

banks hold their annual meetings in January The statutory requirement that national has been found inconvenient, because the first few weeks of the year are the busiest from the standpoint of the internal operations of the banks. This requirement is undesirable, because it is frequently not possible to provide annual reports and other appropriate information about a bank's activities during the preceding year so as to give adequate and timely notice to stockholders before a January annual meeting; for example, it is in many cases impossible to furnish annual reports for the preceding year at the time proxies are solicited for annual meetings. It is also inconvenient and unnecessary to require that the date for the annual meeting be specified in the articles of association.

The usual rule is to permit corporations to meet at any time in the year, as specified in their bylaws (Fletcher, Cycl. Corps. (permanent edition), sec. 2001).

The Comptroller of the Currency's Advisory Committee on Banking, in its report entitled "National Banks and the Future," submitted September 17, 1962, pointed out the difficulties arising from the requirement that annual meetings of national banks be held in January. It was suggested that national banks might be permitted to meet at any time during the first 3 months of the year, or, in accordance with usual corporate practice, at

any time during the year, and the Advisory Committee recommended the former.

The problem came to the attention of the

Committee on Banking and Currency in the

course of hearings on S. 1642, 88th Congress, the Securities and Exchange Commission's 1963 legislative proposals. During these hearings the Comptroller of the Currency ex

Act of January 14, 1937 (50 Stat. 923, chapter 3)," and inserting in lieu thereof: "subsection (e) of the Act of August 25, 1958 (72 Stat. 838),".

SEC. 2. The amendment made by this Act shall take effect with respect to annuity payments made beginning with the first month beginning after the date of enactment of this

Act.

The amendment was agreed to.

The bill was ordered to be engrossed for a third reading, was read the third time, and passed.

Mr. MANSFIELD. Mr. President, I ask unanimous consent to have printed in the RECORD an excerpt from the report (No. 623), explaining the purposes of the bill.

There being no objection, the excerpt was ordered to be printed in the RECORD, as follows:

AMENDMENT

Add section 2 to the bill, as follows:

"SEC. 2. The amendment made by this act shall take effect with respect to annuity payments made beginning with the first month beginning after the date of enactment of this act."

PURPOSE OF AMENDMENT

The bill, as introduced, creates a doubt as to the time the annuities accrue. The amendment provides that the annuities operate prospectively only.

PURPOSE

The purpose of the bill, as amended, is to increase the annuities of widows of Supreme Court Justices from $5,000 to $10,000 per annum, payable monthly.

STATEMENT

The Administrative Office of the U.S. Courts declines to comment on the bill in that it "is of primary concern to the Justices of the Supreme Court."

Individually, all the Justices of the Supreme Court favor the bill.

On January 14, 1937, a private bill was passed creating a pension of $5,000 per annum for the widow of a President of the United States (S. 591, 75th Cong., 1st sess., Private Law No. 1).

Nine years ago, in 1954, pensions were created for the widows of Supreme Court Justices payable at the rate of presidential widows (S. 591 supra); namely, $5,000 per

annum.

In 1958, by general law, the pensions of presidential widows were increased from $5,000 to $10,000. Because of a quirk in the method of creating these pensions, the widows of Supreme Court Justices were not included in the increase. As a result these widows must live on an amount which was determined in 1937.

It is the feeling of this committee that inadvertently an injustice has been done and that the amount of the pensions for Supreme Court widows is not adequate. In view of the foregoing, the committee recommends favorable enactment.

BILL PASSED OVER

The bill (S. 689) for the relief of Lila Everts Weber was announced as next in order.

Mr. MANSFIELD. Over.

The ACTING PRESIDENT pro tempore. The bill will be passed over.

INCREASE IN AUTHORIZED CAPITAL STOCK OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

The bill (H.R. 7405) to amend the Bretton Woods Agreements Act to authorize the U.S. Governor of the International Bank for Reconstruction and Development to vote for an increase in the Bank's authorized capital was considered, ordered to a third reading, read the third time, and passed.

Mr. MANSFIELD. Mr. President, I ask unanimous consent to have printed in the RECORD an excerpt from the report (No. 625), explaining the purposes of the bill.

There being no objection, the excerpt was ordered to be printed in the RECORD, as follows:

PURPOSE

The bill would add a new section at the end of the Bretton Woods Agreements Act. This would authorize the U.S. Governor of the International Bank for Reconstruction and Development (usually known as the World Bank) to vote for a $1 billion increase in the capital stock of the Bank, as recommended by the Bank's Executive Directors to its Board of Governors in a report of November 1962. The increase in capital stock is required to permit new member countries of the Bank to subscribe, and to enable present members to increase their subscriptions when appropriate. No authorization or appropriation of funds is involved in H.R. 7405,

since the United States would not subscribe to any portion of the increase in stock.

BACKGROUND

The World Bank a year and a half ago had 75 members; the membership figure has now reached 101. At the same time, only $13 million of capital stock remains of the Bank's $21 billion total of authorized stock. This remaining margin is inadequate to permit any one of the four newest member countries to complete the process of joining the

Bank, even though they have deposited funds on account toward their subscriptions. Another pending membership application, involving a $33 million subscription, will soon exacerbate the problem. Moreover, a further issue of considerably larger financial dimensions has arisen: several existing members have requested increases in their current subscriptions. As a result of these factors, there are now requirements for almost $600 million in capital stock beyond the existing authorization.

To meet this problem, a draft resolution is now pending before the Board of Governors of the Bank. It provides for an increase of $1 billion in the capital stock of the Bank, and for automatic waiver of each member's right to a proportionate share of the increase in the absence of notice to the contrary before the beginning of 1964. H.R. 7405 would

authorize the U.S. Governor of the Bank (Secretary of the Treasury Dillon) to vote for this resolution. Such authority is required from the Congress-even though the United States would not subscribe to any part of the increase-by the provisions of section 5 of the Bretton Woods Agreements Act (59 Stat. 514; U.S.C. 286c). An exact precedent for the current proposed legislation is afforded by Public Law 86-48, approved June 17, 1959 (73 Stat. 80).

As of this date, nearly 80 of the Bank's member countries, representing about twothirds of the total voting power in the Bank, have voted in favor of the proposal; no negative vote has been cast. Under the Bank's articles of agreement, the proposed increase cannot become effective without favorable action by members having 75 percent of the total votes. Since the United States has approximately 27 percent of the total voting power, action by this country would be both necessary and conclusive.

COMMITTEE ACTION

At an open hearing conducted by the Committee on Foreign Relations on October 29, 1963, the Assistant Secretary of the Treasury for International Affairs, John C. Bullitt, testified in support of the proposed legislation and strongly urged favorable action.

While committee members are quite familiar with the successful activities of the World Bank, Assistant Secretary Bullitt took the occasion to bring the record up to date. He noted that, through September of this year, the Bank had made 361 loans totaling almost $7.5 billion in 67 countries since operations began in June 1946, Over $2.3 billion loaned by the Bank has been repaid to it or sold to other investors. Payments due have been made on schedule, and there have been no defaults; Bank special and supplemental reserves now total over $800 million. Emphasis was given to the Bank's highly useful actions in sending missions to assist lessdeveloped member countries with their economic development planning, and in training officials from those countries to meet development problems. It should be further noted that private capital is brought directly of securities to raise lending resources. In into Bank operations through the flotation connection with the U.S. balance-of-payments problem, it is worthy of attention that the Bank in recent years has primarily raised funds in foreign capital markets.

bers reiterated their confidence in the Bank In considering H.R. 7405, committee memand their appreciation for its fine record. They received with pleasure the testimony that the proposed legislation involves no expenditure whatsoever on the part of the United States. In effect, the bill permits other free-world nations to put funds into international economic development at no cost to this country.

The committee, with no dissenting votes, ordered the bill reported favorably without amendment.

PRINTING OF ADDITIONAL COPIES

OF CIVIL RIGHTS HEARINGS

The concurrent resolution (H. Con. Res. 223) to provide for the printing of 3,000 additional copies of civil rights hearings was considered and agreed to.

ANNUAL REPORTS UNDER RECONSTRUCTION FINANCE CORPORATION LIQUIDATION ACT

The bill (S. 1241) to require annual reports instead of quarterly reports under the Reconstruction Finance Corporation Liquidation Act was considered, ordered to be engrossed for a third reading, read the third time, and passed, as follows:

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 106(b) of the Reconstruction Finance Corporation Liquidation Act (67 Stat. 230) be amended by striking out the word "quarterly" and inserting in lieu thereof "annual".

Mr. MANSFIELD. Mr. President, I ask unanimous consent to have printed in the RECORD an excerpt from the report (No. 628), explaining the purposes of the bill.

There being no objection, the excerpt was ordered to be printed in the RECORD, as follows:

The Committee on Banking and Currency, to whom was referred the bill (S. 1241) to require annual reports instead of quarterly reports under the Reconstruction Finance Corporation Liquidation Act, having considered the same, report favorably thereon without amendment and recommend that the bill do pass.

The Reconstruction Finance Corporation Liquidation Act requires liquidating agencies to report quarterly on their activities under that act (except for the Small Business Administration, which was authorized by the Small Business Act Amendments of 1961 to file annual reports of its activities under the Reconstruction Finance Corporation Liquidation Act). S. 1241 would authorize the liquidating agencies to file annual reports of their activities under the act.

Section 106(b) of the Reconstruction Finance Corporation Liquidation Act (67 Stat. 230; 15 U.S.C. 609n) required the Secretary of the Treasury to make quarterly reports to the Congress setting forth the progress of his liquidation of the assets and winding up of the affairs of the Reconstruction Finance Corporation. Reorganization Plan No. 2 of 1954 (68 Stat. 1280; 5 U.S.C. 133z-15) transferred to the Export-Import Bank of Washington, the Small Business Administration, and the Federal National Mortgage Association such liquidation functions with respect to certain assets. Reorganization Plan No. 1 of 1957 (71 Stat. 647, 5 U.S.C.; 133z-15) effected further transfers of functions under the Reconstruction Finance Corporation Act and the Reconstruction Finance Corporation Liquidation Act to the Housing and Home Finance Agency, the General Services Administration, the Small Business Administration, and the Secretary of the Treasury. These agencies are now carrying out the task of liquidating the remaining assets, and they report to the Congress from time to time under the Reconstruction Finance Corporation Liquidation Act.

Section 5(a)(1) of the Small Business Act Amendments of 1961 (75 Stat. 666) amended this provision with respect to the Small

The bill (H.R. 8821) to revise the provisions of law relating to the methods by which amounts made available to the States pursuant to the Temporary Unemployment Compensation Act of 1958 and title XII of the Social Security Act are to be restored to the Treasury was considered, ordered to a third reading, read the third time, and passed.

Mr. BYRD of Virginia. Mr. President, House bill 8821 deals with the schedule of repayments of certain advances made to the States for the purpose of paying unemployment compensation.

The normal Federal unemployment tax rate is 0.4 percent of an employee's wages up to $3,000. However, where advances are made to States to pay unemployment compensation, if those advances are not timely repaid, the 90-percent credit against the Federal tax for State unemployment taxes is reduced by 5 percentage points each year so that the advance is compulsorily repaid through an increase in the Federal unemployment tax. Three States, Alaska, Michigan, and Pennsylvania, have received advances which have not been repaid and the automatic reduction in the Federal credit has commenced.

In addition to these advances, 17 States received special advances to finance temporary unemployment compensation benefits under the 1958 act. These advances also are to be repaid through reduction of the Federal credit of 5 percentage points each year beginning this year-unless the State voluntarily repays the advance. Only the District of Columbia has repaid its advance.

ployment compensation benefits were financed through an increase in the Federal tax applicable to 1962 and 1963 wages. For 1963 the additional tax rate for this purpose is 0.25 percent of wages up to $3,000.

The combination of these factors place a burden upon employers in the affected States, particularly in those States where the repayment rules apply concurrently.

H.R. 8821 relieves this burden on employers by "freezing" the credit reductions for the years 1963-67, thereby "stretching out" the period of repayment. However, it does not forgive repayment of any amount.

Under the bill reductions of credit in the case of Reed fund advances to Alaska, Michigan, and Pennsylvania will be frozen at the first 5-percentage-point step. This means the additional Federal unemployment tax for this purpose will not exceed 0.15 percent during 1963-67. Thereafter the regular reduction in the 90 percent credit of 5 percentage points each year will apply until the advance is fully repaid. Reduction in the credit to repay advances under the 1958 Temporary Unemployment Compensation Act will be frozen at the second 5-percentagepoint step. Thus, the additional Federal unemployment tax for this purpose will not exceed 0.3 percent.

In lieu of repaying advances under the 1958 act through increased Federal unemployment taxes, H.R. 8821 permits States to make installment payments of their advances and thereby prevent the increased Federal tax for this purpose from applying for the year in which the installment is paid.

Mr. DIRKSEN. Mr. President, in connection with House bill 8821, which I think was unanimously approved by the House Ways and Means Committee or Ju

S. 2286. A bill conferring jurisdiction upon the U.S. Court of Claims to hear, determine, and render judgment upon the claim of Frank E. Lipp; to the Committee on the Judiciary.

By Mr. HART (for himself, Mr. CLARK, Mr. COOPER, Mr. DOUGLAS, Mr. MORSE, and Mr. SALTONSTALL):

S.J. Res. 131. Joint resolution to authorize the President of the United States to award a medal to Dr. Gordon S. Seagrave; to the Committee on Banking and Currency. (See the remarks of Mr. HART when he introduced the above joint resolution, which appear under a separate heading.)

MANAGEMENT OF THE NATIONAL DEBT AND THE TAX STRUCTURE

Mr. SALTONSTALL. Mr. President, in the past two Congresses, I have introduced a bill to clarify the components of and to assist in the management of the