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foreign policy, particularly on that part Kennan, has quit as President Kennedy's sador, Kennan found “the great difficulty relating to our relations with the Soviet Ambassador to Yugoslavia. Now free to speak was to get opinion and authority out of Union and Eastern Europe. He was in

out boldly, he warns that "overmilitariza- Washington, especially when it cost money." the Foreign Service for 25 or 30 years.

tion" of our cold war thinking and fear of The bureaucracy cannot react to changes

the “powerful influence of the right wing" fast enough. “Other countries find they He was acknowledged as one of the leadare destroying our strength abroad.

are protected by our own financial proceing experts on Russia. He spoke the

(By J. Robert Moskin)

dures,” he says. "The ponderousness of our language well. He was sent there as a very young man specifically to learn divided that American leadership is inde

"Congress and the American people are so

Government institutions works against our

best interest.” Russian. He was our Ambassador to cisive. It is high time we clarified our ideas,

The third force Kennan sees crippling our Russia. He had the distinction, if one as a nation and a government, as to what we foreign policy is the self-interest of our wishes to call it that, of having his recall want in our contest with the Soviet Union

allies. “This coalition is incapable of agreerequested by the Soviet Government for and the rest of the Communist world: ing on any negotiated solutions except unremarks he made that were considered Whether we want these countries to change,

conditional capitulation and the satisfaction to capitulate to our desires, or whether we

of the maximum demands of each of our alby the Kremlin as being critical of the situation in Berlin, I believe. This was

want war. People who hold all these three lies. It is easier for a coalition to agree points of view have influence in Washing

to ask for everything but the kitchen sink, about 10 years ago. ton."

rather than take a real negotiating position. I believe everyone acknowledges that This warning comes from George F. Ken

“This worries me because there is not he has wide experience and knowledge of nan, long time expert on communism, former going to be any capitulation. Our adverconditions in that part of the world and U.S. Ambassador to the Soviet Union and to saries are not that weak. If we cannot find of our relations there. Yugoslavia, and a prime architect of the Mar- any negotiating position, the cold war will

continue, and the dangers will not decrease.” I regret that anyone should criticize shall plan. It is a rare event when a top

The Russians may not accept our prohis efforts to enlighten the American rank diplomat like Kennan, who has served people and Members of this body about 29 years in the Foreign Service, breaks loose posals, “but unless you dangle something

before them, you put no pressure on their our relations with Yugoslavia specifi- America's foreign policy failings. from the establishment and speaks out on

decisionmaking." cally, or Eastern Europe generally, or Kennan, 59, has fought for his convictions Kennan sees no New Frontier in foreign with the Kremlin.

against Democrats and Republicans alike. affairs. "The Kennedy administration is not His views are deserving of great He opposed Democratic Secretary of State by any means a free agent in foreign policy. weight. I would certainly not say they Dean Acheson's German policy and was once I can see important changes in military were infallible, but there is no more

fired by Republican Secretary of State John policy. But in foreign policy, the adminthoughtful man or student of our rela- Foster Dulles for disagreeing with his talk of istration has had little latitude of action.

"Supposing these strictures did not exist tions with Eastern Europe and Russia in Kennan has resigned as President Kennedy's and the Congress were more receptive? I or out of government.

Ambassador to Communist Yugoslavia be- believe we could usefully rethink our posiHe has resigned. He has a private cause, he feels, the Congress and Washing- tion on the problems of Germany and Central capacity now. He is entitled to speak as ton bureaucracy had him hogtied and have Europe. The same applies to the complex any other citizen is. The only difference crippled American foreign policy.

of problems surrounding Communist China, is that he speaks about his special field

After a lifetime in diplomacy (he was sent Taiwan, and the Japanese peace treaty. We of study from knowledge and experience nized its existence in 1933), this tall, lean, to the Soviet Union as soon as we recog- ought to review carefully our attitude toward

Gen. Charles de Gaulle and see whether, that are virtually unique among all the imposing man sits now in his still book-bare under his concepts, France could not assume citizens of this country.

office at the Institute for Advanced Study more of the burden of leadership in Western I believe the statements he made in in Princeton, N.J., clasps and unclasps his Europe and protection of Western Europe this article are on the whole correct. I hands, jumps up and paces the small room, against Communist pressures. There ought predict that history will prove that many peers out the window-as he struggles to say to be searching reexamination and clarificaof the suggestions that have been made precisely what the American people should tion of our policy toward Eastern Europe.

The same applies to the various neutralist regarding our policy with respect to the know about the state of their Nation abroad.

In essence, he holds: We are fumbling be- countries in Asia, Africa, and Europe. Soviet Union will prove to have been wise

cause we have not made up our minds what "Finally, there must be a real debate and ones.

kind of world we want, or what our role in clarification of our views on the problems of The PRESIDING OFFICER. The time the world should be. The administration is nuclear weapons. It seems dangerous to me of the Senator has expired.

zeroed in on political victory at home, en- that we should have to continue to stagger Mr. FULBRIGHT. I ask unanimous meshed in bureaucratic redtape and buf- along with unresolved differences such as we consent that I may have 1 more minute. feted by political cyclones that roar in from have just witnessed in the debate on the test The PRESIDING OFFICER. Without policies to pressures often inspired by "the many directions. It sacrifices thought-out ban treaty."

To illustrate how such forces paralyze our objection, it is so ordered.

powerful influence of the American right- foreign policy, Kennan explains why he reMr. FULBRIGHT. Several years ago wing.” Kennan fears that unless we nail signed from the State Department: "I had Mr. Kennan became well known for an down what we want our foreign policy to be, no difficulty with the administration, but article in Foreign Affairs, written by we will plummet to the ground in wing- the actions which the Congress designed to

tie the administration's hands in our ecoMr. X”-I believe that was the pseudo- clipped futility, or plunge into the flames of war.

nomic relations with Yugoslavia-and in a nym. It was considered as the origin

"If we can't devise solutions better than of the policy of containment. Subse- this, we should ask ourselves whether we

way that would deny the Yugoslavs normal

commercial treatment-largely paralyzed my quent to that, a new policy of liberation belong in the big leagues,” Kennan warns. effectiveness there. If I had greater support theoretically was developed, which has Indecisiveness at the top leads to a sterility on the congressional side, and felt there were not proved as effective. I think the ac- of ideas and a failure to act. As a result, important possibilities for accomplishment, tual state of affairs is much closer, and he argues, our foreign policy is paralyzed. A my decision might have been different.” has been, to that of containment rather politician, whether in the White House or

Although the United States had millions than liberation.

the Congress, who voices new ideas or acts of dollars in the bank in Yugoslavia, Kennan

with firmness in foreign affairs, must always spent months getting congressional approval He also has given noted lectures on protect his political life against extremists even to repair the Embassy fence. "The Western Europe regarding our policies who talk loudly, but carry a very small stick jealous and narrow ways in which these matin that area, which, while they have not of responsibility.

ters are handled have to be changed.” been followed, and were roundly con- Kennan sees three forces paralyzing our Last July 26, an earthquake destroyed the demned by former Secretary Acheson, foreign policy. The first is the Congress, in Yugoslav city of Skoplje, killing and injuring may prove in the future to have had con- which a few powerful men—such as some thousands. He has bitter memories: “The siderable wisdom.

leaders of the House Ways and Means Com- congressional strictures were so severe that In any case, I for one wish to com- strong notions about what the Government thing I could do was give blood. No con

mittee—tie up foreign policy. Some have we didnt know how we could help. The only mend Mr. Kennan for taking the trouble should be doing; others fear attacks from the gressional committee could stop me from to give the public his views. I regard extremists; some speak for special interests doing that.” him as one of the outstanding public or jealously hug their prerogatives as hold- Last year, the Congress directed the Presiservants of our time.

ers of the Nation's purse strings. There is dent to stop, as soon as practicable, normal EXHIBIT 1

no reason to believe Kennan says, that their most-favored-nation trade with any coun

views represent American opinion more ac- try dominated or controlled by communism. OUR FOREIGN POLICY IS PARALYZED curately than the President's.

“The Yugoslavs aren't even asking aid," (NOTE.Respected diplomat, Russian ex- The second force is the deadening hand Kennan says. (They stopped taking military pert, and Pulitzer Prize historian, George F. of Government bureaucracy. As an Ambas- assistance from the United States in 1957.) "They just want normal commercial treate powers were to withdraw, all Europe would charges of colonialism—and we have to be ment, and the Congress won't give it to them. go down on its knees. He points to the very leery, very cautious of that.” That's very bad.

Austrians: “They didn't go down on their He thinks getting out of South Vietnam "I don't like to serve an administration knees. The Finns have done nothing of the is a possibility to be considered: “Let's not that has been told by Congress it can't aid a sort."

overdramatize the results. Let's look at it country if it wishes to. I feel very strongly As a result of this overmilitarized thinking, realistically. It will be bad, but not as bad it is foolish to deny normal commercial in Kennan believes we have mishandled postwar as we sometimes think. Politically, I regard tercourse to a country facing important Germany. "Ever since 1950, when Mr. the Chinese as much more deeply committed choices between East and West ** I don't Acheson proceeded to the rearming of West against us than the Russians.” However, he favor any gifts to Yugoslavia, but I think it Germany, I've had misgivings about it. This adds, “the Chinese Communists are not yet unfortunate that we should leave the long has been a serious handicap on our policy a substantial naval or air power. It does not term financing of Yugoslavia's industrial de- in Eastern Europe. All of them fear Ger- bear the same military implications as Rusvelopment entirely to Russia."

many and don't want to see Germany re- sia taking over. On the contrary, there is Kennan found some Congressmen sympa- armed. This is one fear that is shared by the such a thing as overextension.” thetic toward his views on trade with Yugo- people and the regimes of Eastern Europe. How should we react to the Soviet-Chinese slavia. They told him, “What you say is "It wouldn't have hurt the Germans to split? “The Soviet-Chinese conflict repretrue, but I don't want to go back to my dis

have had at least 20 years of demilitariza- sents one of those turns of events in the trict having helped a Communist regime.” tion.”

face of which a great nation has no excuse Kennan charges: "This resulted in a position

Kennan would like to see a unified but not to think through its policies toward that gave aid and comfort to an enemy. neutralized Germany possessing only weap- the Communist world.” They were interested in keeping themselves ons for defense. None of this can be Kennan sees little hope of establishing out of trouble."

changed overnight. The West Germans are relations with the Chinese Communists now. He believes that much of the pressure on

members of NATO, and we have to respect He thinks they are "much too violent, wild, such Congressmen comes from the right that status. I'm talking about a disposition emotional.” Yet, he contends, “the day will wing. "People are terribly sensitive to the

to change some of these arrangements if, come when they settle down and we can charge that they are not sufficiently anti

and only if, the Russians will make some have talks with them. We should be preCommunist. The right wing has had an in- compensation only as part of a deal."

pared to talk to the devil himself, if he fluence-it silences its opponents and makes

As Kennan sees it, two factors block the controls enough of the world to make it everyone desirous of not being criticized from

reunification of Germany: "We are inhibited worth our while." this quarter. A great part of the country by feeling the need of a strong U.S. military He regards recognition of Communist stands silent on this. By far the greatest force in West Germany, even if the Rus- China as "nothing more than the opening part of the American press is intimidated."

sians withdraw in East Germany. They are of a channel of communication-not a reHe concludes: “There are tremendous inhibited by the disgraceful weakness of ward or approval.” But, he says, “I am not issues that ought to be thoroughly debated

the Ulbricht regime.” We should press the sure they are even prepared to treat an and talked out and resolved in such a way as

Russians to replace it. "They realize they American representative properly. I think we can have a clear, vigorous, and consistent

are holding up a regime which has no popu- we might have de facto recognition, keep a policy in all these fields. These issues should

lar support. I believe someday Russia will chargé there as the British do, if they will not be allowed to smolder and paralyze na

have to abandon East Germany and let it re- treat him properly." tional action.” join Germany."

Of Communist China entering the U.N., Kennan sets forth four basic questions that

Disengagement in Europe has not become he says, “I don't think they would be a very Americans must answer for themselves:

American policy, but Kennan's ideas about constructive member of the U.N.-any more Do we want to destroy, or negotiate with,

the containment of Soviet power have greatly than the Russians have been. But if a maCommunist nations? At the heart of our in

influenced our approach to the Soviet Union. jority of members wanted them in, we would ternational confusion is the question of "whether we are determined to destroy all Foreign Service in 1953 by Secretary of State

They also triggered his being fired from the put ourselves in a misleading position by these Communist regimes and inevitably Dulles, or, as Emmet John Hughes has writ

holding out against it. This too is not some

kind of reward." have war, or are we determined to take ad- ten, discourteously dismissed.

How can the United States rid itself of vantage of such elements of moderation as may appear in the behavior of some of them, rescuing Eastern

Europe damaged the United

Kennan is convinced that Dulles talk of the jellylike indecision that paralyzes our with a view of strengthening the chances of States. "Mr. Dulles liked to talk about liber

foreign policy? Kennan points to three world peace?"

alternatives: ation of Eastern Europe, but did nothing Kennan states bluntly where he stands:

First, if we are not going to act as a powerabout it. I prefer not to talk about it. Mr. ful and responsible leader of the free world, "People who expect the capitulation of Com

Dulles talked a line designed to appease munist power are talking about something the rightwing critics of our policy, and fol

we had better get out of the arena. Kennan so unrealistic that they really want war.”

does not advocate isolationism, but he feels lowed the same policy as in the past. I have He calls their view highly irresponsible.

that the present chaos is worse than isolafelt we should not talk in a way we did not Some Americans, in Kennan's view, see

tion. Americans are not used to compromises totalitarianism as a straitjacket in which was “to tighten the apron strings of the

intend to act." The effect of Dulles' words and dealing with a formidable adversary in people get locked permanently. Others rec

peacetime. We need, he says, either to ognize it as one illness of the human spirit Kennan warns that we still have not made

satellite governments to the Soviet Union.” strengthen the Executive's freedom to act in from which societies recover.

foreign affairs or quit. “We lived for more He contrasts Khrushchev's regime with Europe to evolve in our direction, or whether

up our minds "whether we want Eastern than 100 years on principles of withdrawal Stalin's: "I don't think it is more friendly we want to overthrow these governments.”

from the mainstream, and maybe this should toward us than Stalin's, but it is probably

be done again."

On what basis should we give aid to other ready to go further in the direction of accom

His second alternative is to modify our nations? Kennan argues that economic and modation with us on questions of disarma

political system. “Our form of Government ment than was Stalin. The moderation of military aid is no checkrein to keep teeter

is not well suited to making decisions." The the internal terror and the greater liberality ing nations from dropping into the pit of

reason for this, he says, is that “power is too internally make it easier for us to deal with

communism. "I personally am skeptical much fragmented in Washington, including them."

about foreign aid, especially when it is given the Congress, the Armed Forces, the FBILooking beyond the Khrushchev era, Ken

as a condition of not going Communist. We all the people who decide our national ac

should help those who say, 'We are going to nan says, "The demand of Russian youth for

tions." knowledge about the outside world and for

survive whether you help us or not'-like Kennan suggests that we move closer to freedom of expression has reached a dimen

Finland. When a country says, 'If you don't a parliamentary system. We could regard sion such that no Russian regime will be the trolley.”

help us, we will go under,' we should get off the off-year congressional elections between able to frustrate it entirely."

presidential elections as a vote of confidence Do we want political or military solutions

Jumping off the trolley can be a tricky on the administration's policies. If a Presfor the cold war? Kennan has long felt that

maneuver, as the U.S. Government was re- ident felt the vote showed that he was not our thinking about the cold war has been

minded recently when it reexamined its supported in the country, he could be free dominated by overmilitarization.

choices of action in South Vietnam. KenWe too

to call a presidential election immediately. often believe, if we have military superiority, nan wants to take a tough look at regimes (To those who fear this idea, Kennan emthe Communists must meet our demands.

like Ngo Dinh Diem's. "We should appraise phasizes that it would have to be made by To Kennan, Europe is a political problem.

them-neither take too tragic a view of them amending the Constitution: "There's nothThis judgment led to his break with Secre

nor underrate them. When you have re- ing treasonable about that.”) tary of State Acheson, Kennan advocated a gimes of this sort, they are awful fast to

Kennan's third alternative is to mount a withdrawal of both Soviet and American

take advantage of your willingness to help public debate over foreign policy so that power from the center of Europe. Acheson, them. You always have to be ready to get the American people can understand the he recalls, took "violent exception" to this

issues, make up their minds about them and idea of "disengagement" and blasted it as "a

If we find people unable to help them- reach a consensus. Out of such a debate, timid and defeatist policy of retreat” and selves but still consider their area vital, Kennan hopes, can come an American view"the new isolationism." Kennan still dis- Kennan adds, “then we have to be ready to point-a body of instruction to the Presiagrees with Acheson's claim that if the great take over entirely, and be ready to face the dent and a body of support. “You must have

a crystallization of dominant public opin- 1949, to Paul Hoffman, then Adminis

1949, to Paul Hoffman, then Adminis- bill, there would not be a start on civil ion. Our international position calls for this trator of the Economic Cooperation Ad

trator of the Economic Cooperation Ad- rights legislation on the floor of the Senkind of clarification-calls urgently for it, ministration, in which I said that in such a way that perhaps it is the last call. through our aid governments had been

ministration, in which I said that ate, for there is no civil rights bill that It can't come too soon.”

through our aid governments had been any Senator has any intention of offer

established among all of our World War ing immediately on the floor of the Mr. ROBERTSON subsequently said: Allies in Western Europe sufficiently Senate. Mr. President, in my opinion, our former strong to resist the pressure of minority It is the understanding of the senior Ambassador, first, to Russia and then to Communist groups.

Senator from Oregon that the Senate is Yugoslavia, Hon. George F. Kennan, is

awaiting some action in the House on the ablest diplomat that we have devel

civil rights. The House is probably 2 oped, especially with respect to our re- CIVIL RIGHTS LEGISLATION AND and even 3 weeks away from completing lations with the Communists, in recent FOREIGN AID LEGISLATION action on a civil rights bill. years. Before resigning from the diplo

Mr. MORSE. Mr. President, the press I grant that debate on civil rights matic service to become a professor at continues to print misstatements and could be started if that happened to be Princeton, Mr. Kennan had spent most misrepresentations in regard to the a part of the agenda, but it is not a of his adult years with the State Depart. status of civil rights legislation on the part of the agenda. . ment, having been sent to the Soviet floor of the Senate. The smear tactic Moreover, an examination of the SenUnion as soon as we recognized it in 1933. of the press is that because the senior ate Calendar does not reveal any great In an interesting interview in the No- Senator from Oregon refuses to give

Senator from Oregon refuses to give list of important legislation that is vember 19 issue of Look magazine, Am- unanimous consent to limit debate in

unanimous consent to limit debate in awaiting action by the Senate. It is a bassador Kennan had this to say about the Senate on the foreign aid bill, he is short list. With the exception of the foreign aid:

in some kind of collusive conspiracy with cold war GI bill and two or three other I personally am skeptical about foreign anticivil rights forces in this country, measures, much of it can be disposed of aid, especially when it is given as a condition and that we would be able to proceed within a few days of debate. Seven of of not going Communist. We should help to consideration of a civil rights bill in the bills on it have already been adopted those who say, "We are going to survive the Senate if the senior Senator from this morning. whether you help us or not”—like Finland. Oregon would be more cooperative with I ask unanimous consent to have When a country says, "If you don't help us, the leadership of the Senate by surren- printed at this point in the RECORD, the we will go under,” we should get off the dering his right to prevent unanimous

dering his right to prevent unanimous general orders of the Senate Calendar, trolley.

consent agreements on the foreign aid which shows the bills awaiting Senate With that statement I am in full bill.

consideration. sympathy and accord, as I indicated in

Let me say once again that if consid- There being no objection, the material my speech to the Senate last Friday eration of the foreign aid bill were ordered to be printed in the RECORD, when I quoted my letter of December 4, stopped this minute, by passage of the is as follows:

General orders under rule VIII

Order
No.

Number and author

of bill

Title

Reported by

305 H.R. 4214.

An act for the relief of the Stella Reorganized Schools R-I, Missouri. June 27, 1963.- Mr. Eastland, Committee on the Judiciary, ($1,500).

without amendment. (Rept. 331.) 319 S. 5 Mr. Yarborough and A bill to provide readjustment assistance to veterans who serve in the July 2, 1963.- Mr. Yarborough, Committee on Labor and others. Armed Forces during the induction period.

Public Welfare, with amendments. (Rept. 345) (Mi

nority views.) 449 S. 1540 Mr. Magnuson. A bill to amend the Federal Aviation Act of 1958 to provide for the regu- | Aug. 28, 1963.-Mr. Monroney, Committee on Commerce,

lation of rates and practices of air carriers and foreign air carriers in for- without amendment. (Rept. 473).

eign air transportation, and for other purposes. 451 S. 1033 Mr. Magnuson..-- A bill to establish a uniform system of time standards and measurements Aug. 30, 1963.—Mr. Magnuson, Committee on Commerce,

for the United States and require the observance of such time standards with amendments. (Rept. 475.)

for all purposes. 462 H.R. 82... An act to amend the Merchant Marine Act, 1936, in order to provide for Sept. 11, 1963.

Mr. Bartlett, Committee on Commerce, the reimbursement of certain vessel construction expenses.

without amendment. (Rept. 486.)

(Minority views filed.) 483 s. Con. Res. 1..--

Concurrent resolution to create a joint committee to study the organization Sept. 19, 1963.-Mr. Hayden, Committee on Rules and Mr. Clark and others. and operation of the Congress and recommend improvements therein. Administration, with an amendment. , (Rept. 504.)

(Individual and supplemental views filed.) 485 S. Res, 111.----

Resolution amending Rule XXV of the Standing Rules relative to meet- Sept. 19, 1963.-Mr. Hayden, Committee on Rules and Mr. Church and others. ings of committees while the Senate is in session.

Administration, without amendment. (Rept. 506.)

(Individual views filed.) 486 S. Res. 89.----

Resolution providing for germaneness of debate under certain circum- Sept. 19, 1963.-Mr. Hayden, Committee on Rules and Mr. Pastore and others. stances.

Administration, with amendments. (Rept. 507.)

(Individual views filed.) 502 S.927

A bill to amend title 12 of the Merchant Marine Act, 1936, in order to re- Sept. 24, 1963.-Mr. Bartlett, Committee on Commerce, Mr. Magnuson.

move certain limitations with respect to war risk insurance issued under with an amendment. (Rept. 523.) (Individual views the provisions of such title.

filed.) 546 S. 2100...

A bill to continue certain authority of the Secretary of Commerce to sus- Oct. 17, 1963.-Mr. Magnuson, Committee on Commerce, Messrs. Magnuson and pend the provisions of sec, 27 of the Merchant Marine Act, 1920 with re- with amendments. (Rept. 568.) (Minority views filed.) Jackson.

spect to the transportation of lumber. 566 | H.R. 7885.

An act to amend further the Foreign Assistance Act of 1961, as amended, Oct. 22, 1963.--Mr. Fulbright, Committee on Foreign Reand for other purposes.

lations, with an amendment. (Rept. 588.) 570 S. 2265..

A bill to amend the Library Services Act in order to increase the amount Oct. 29, 1963.--Mr. Morse, Committee on Labor and Public Mr. Morse.

of assistance under such act and to extend such assistance to nonrural Welfare, without amendment. (Rept. 592.) (Minority areas.

views filed.) 572 S. 1396.

A bill to consent to the institution of an original action in the Supreme Oct. 29, 1963.-Mr. Fong, Committee on the Judiciary, Mr. Fong.

Court for the adjudication of the claim of the State of Hawaii to certain without amendment. (Rept. 594.)
land and property situated within that State.

Calendar called Oct. 39, 1963 600 S. 2228

A bill to change the requirements for the annual meeting date for national Nov. 1, 1963.-Mr. Robertson, Committee on Banking and Mr. Robertson, banks.

Currency, without amendment. (Rept. 622.) 601 S. 1686.

A bill to amend sec. 375 of title 28 of the United States Code, relating to Nov. 1, 1963.-Mr. Dirksen, Committee on the Judiciary, Mr. Dirksen, the annuities of widows of Supreme Court Justices.

with an amendment. (Rept. 623.) 602 S. 689... A bill for the relief of Lila Everts Weber...

Nov. 1, 1963.-Mr. Long of Missouri, Committee on the Messrs. Long of Missouri

Judiciary, without amendment. (Rept. 624.) and Symington, 603 H.R. 7405.

An act to amend the Bretton Woods Agreements Act to authorize the U.S. Nov. 1, 1963.-Mr. Fulbright, Committee on Foreign Rela

Governor of the International Bank for Reconstruction and Develop- tions, without amendment. (Rept. 625.)

ment to vote for an increase in the Bank's authorized capital stock. 604 H. Con. Res. 223.

Concurrent resolution to provide for the printing of 3,000 additional copies Nov. 1, 1963.-Mr. Jordan of North Carolina, Committee on of civil rights hearings.

Rules and Administration, without amendment. (Rept.

627.) 605 S. 1241..

A bill to require annual reports instead of quarterly reports under the Re- Nov. 1, 1963.- Mr. Robertson, Committee on Banking and Mr. Robertson. construction Finance Corporation Liquidation Act.

Currency, without amendment. (Rept. 628.) 606 H.R. 8821.

An act to revise the provision of law relating to the methods by which Nov. 4, 1963.-Mr. Byrd, of Virginia. Committee on Fi

amounts made available to the States pursuant to the Temporary Unem- nance, without amendment. (Rept. 629).
ployment Compensation Act of 1958 and title XII of the Social Security
Act are to be restored to the Treasury.

Mr. MORSE. Mr. President, there- distinguished and knowledgeable array of presently covered persons in the social secufore, once again let me say-although it talent which you have drawn together to rity system was $486 billion—$269 billion

in excess of the value of the taxes these never does any good to give facts to the present the program.

Most of us take the social security system persons and their employers would pay, plus press, because a very large segment of it is so Pravda inclined that it does not for granted. During the past

26 years, the what was left

in the trust fund. system has been broadened and liberalized Following the

the 1961 act, the shortage report the facts and will not print them- so that today nearly everyone who draws reached $321 billion. In just 4 years, the that those of us who are interested in wages or a salary, or is self-employed, is in shortage legislated by Congress amounted to full debate on the foreign aid bill are, the program. It has become an accepted way $52 billion. first, not in any collusion or conspiracy of life in the United States, and few practical As a class, present members of the social with the anti-civil-rights forces in the politicians suggest its repeal anymore. security system will pay an estimated 42 perSenate, if there are any; and, second,

But this does not mean that it is impracti- cent of the value of their benefits in taxes.

cal to call attention to the state of insecurity But, as shown in table 4 (below), new enthere is no present intention to start, in of social security. It is a deadly practical trants, along with their employers, will pay the immediate future, Senate consider

situation which must be faced up to; and if an estimated average of 167 percent of the ation of a civil rights bill. Our refusal the ill-considered and unfair King-Anderson value of the benefits they can ever hope to to give a definite commitment to debate bill has done nothing else than to focus pub- receive. The discrepancy is worse for many, the foreign aid bill on a time limitation lic attention on the deplorable state of our of course, depending upon whether they are bears no relationship whatever to any social security system, it has served a useful married, how few children they have, and purpose.

whether or not they are self-employed. This immediate handling of civil rights legis

During 1961 and 1962, while we were going disproportion for new entrants into the social lation.

almost $14 billion deeper into debt, we had security system will continue indefinitely Mr. MANSFIELD. Mr. President, will inflation of over $14 billion throughout the into the future and will grow worse if Conthe Senator yield?

United States. This is at the rate of $7 bil- gress votes some more benefits under social Mr. MORSE. I yield.

lion a year-equal to a 10-percent income security without increasing taxes to pay for Mr. MANSFIELD. I wish to reinforce tax increase. Illinois' share of this $7 billion these added benefits currently. what the distinguished senior Senator

annual inflation was $459 million-equal to It is in this setting, of course, which the

a 3.4 percent sales tax put on the backs of administration's social security-financed from Oregon has said. I point out that Illinois citizens to finance the billion-dollar Hospital Insurance Act of 1963--formerly if it were his desire to delay any legis- deficit spending programs passed by Congress. misleadingly called medicare, is to be conlation, he could do so quite easily. How- The wholesale price index has remained sidered. No doctor bills are covered-only ever, every time that I have gone to him stable for the past 5 years. However, the limited hospital and nursing home bills. and other Senators to bring up bills on retail cost-of-living index, which is what af- Under the proposal, some 16 million persons the calendar, he has been most coopera

fects 99.9 percent of our citizens, has gone up over 65 would immediately become eligible tive and courteous. from 214.5 in January of 1961 to an alltime for benefits even though they never paid any

tax money to finance them; and millions of I join in what he has said, and point high of 221.3 in September. And the correla

tive is that the purchasing power of our out to Senators that so far as the cal

others in the middle-age group would pay dollar has fallen during this period from 46.6 only a fraction in taxes of the value of the endar is concerned, it is clear at the

cents (measured against a 1939 dollar worth benefits they would receive. And this would moment that we are waiting for a bill in 100 cents) to 45.2 cents.

be so whether or not any of these people the civil rights field from the House, that All of this means that social security re- could afford to pay for these benefits out of no bill has yet been reported to the cipients are being steadily squeezed by a con- their own resources. House, and therefore, we do have time.

tinued decline in the purchasing power of In other words, there would be another

their pensions. Mr. MORSE. I thank the majority

deficit in the social security system to be leader very much for that statement. It

From table 1 (see below) in our outline, made up by higher taxes on present and fu

you can see how the increases in pensions ture entrants into the system along with is typical of the majority leader. I ap

enacted by Congress have been needed to their employers. This deficit has been varpreciate his statement very much.

preserve the purchasing power of pensioners iously estimated at between $25 and $60 bilbecause of the declining value of the dollar. lion, and it would be on top of the $321 bil

Since most of these pensioners do not have INSECURITY OF SOCIAL SECURITY

lion deficit now in the social security sysenough income to pay income tax, or pay tem. The only way the deficit could be Mr. MILLER. Mr. President, on Octo- very little income tax, they are naturally avoided would be to modify the bill to exber 31 it was my pleasure to address the concerned over an even greater decline in clude benefits for those who can afford to pay 45th annual meeting of the Illinois State the value of their pensions. They would for them, or partially exclude benefits for Chamber of Commerce on the subject

receive no benefit from a tax cut; but they those who can afford to pay part of them, "Insecurity of Social Security.”

would severely feel a stepped up inflation and to increase taxes enough to put the new All of us from time to time receive

if a tax cut were enacted without a cutback program on a pay-as-you-go basis. Otherletters from people inquiring why social

in spending to make room for it. Congress wise, future generations of employees and

would sooner or later have to increase the their employers will pick up the tab. security taxes are as high as they are, pensions—and taxes.

From table 5 below, you can see that two and expressing concern over the prospect These are two reasons for the insecure more boosts in social security taxes for emthat they will become higher. Along with state of the Social Security System:

ployers and employees are already in the law. my speech, I included an outline setting 1. Millions of people have been blanketed However, be forewarned that there may be forth various tables showing important

into the program without paying more than more increases. Congressman WILBUR MILLS, data relative to the social security sys

a fraction in taxes of the cost of the benefits of Arkansas, the chairman of the House Ways

they are receiving. (See table II below, and Means Committee, has introduced a bill tem, not the least of which is the fact

showing the total payments a pensioner which would raise the earnings base from that the social security system is now

would have made under the various acts— $4,800 to $5,400. This bill appears to be in $320 billion unfunded, and that, of as against just the first year of retirement response to a trustee's report on social secucourse, the prospect of a hospitalization benefits he or he and his wife would re- rity trust funds a few months ago which inact financed through social security taxes ceive.)

dicated a long-range income deficiency of looms in the offing as an additional

2. Congress has been increasing social

social about 3 percent. The Mills bill would cut burden on the backs of Americans.

security benefits and expanding the coverage in half the 3-percent deficiency. If enacted, I ask unanimous consent that the text

without at the same time increasing social it would mean that the employer and emof my address, with the tables and ex

security taxes enough to meet the increased ployee would each pay $21.75 a year more;

costs-on a current basis. When measured and self-employed persons earning $5,400 amples, be printed in the RECORD at this

against the benefits which are going to have would pay $32.40 a year more. point.

to be paid out to all persons presently work- Table 6 below indicates how, even in reThere being no objection, the material ing or retired under social security, the fund cent years, tax payments are falling short was ordered to be printed in the RECORD, is some $320 billion short. This represents of funding benefit payments. Just for the as follows:

a per capita deficit of $4,679 for each and 6 years shown, the shortage comes to $4.3

every person in the social security program billion. This will level off in future years, INSECURITY OF SOCIAL SECURITY today.

but the long-range deficiency will still be (By JACK MILLER, U.S. Senator, Iowa) Incidentally, the balance in the fund was an estimated 3 percent unless either the tax Members of the Illinois State Chamber of about $19 billion last June 30-down $4 bll- rate or the earnings base, or both, are inCommerce, and guests, first let me express lion from its high point of $23 billion in creased. my appreciation for the gracious invitation 1957.

If the administration's proposed Hospitalto appear on the splendid program of your From table 3 (see below) in your outline, ization Insurance Act of 1963 (the King45th annual meeting. It is an exceptionally you can see how the deficit has increased Anderson bill) is enacted, the earnings base well-balanced and timely program; and I am just since 1956. Following the 1956 act, would be increased to $5,200, and the rate honored to appear in the company of such a the value of benefits and expenses for all would be increased one-fourth of 1 percent for the employer and one-fourth of 1 percent retirement system has unfunded liabilities TABLE 2.-Showing payments made by worker for the employee; the rate would be increased amounting to $34 billion, and Civil Service and his employer, commencing in 1937, four-tenths of 1 percent for self-employed in- Commission officials have warned that the compared with pension for just 1 year dividuals. It would mean that the employer retirement fund will go bankrupt between following retirement under the 1935 act and employee would each pay $24.50 a year 1980 and 1990 unless some changes are and successive acts ($3,000 base) more; and self-employed persons earning made. Things are so bad that more than $4 $5,200 would pay $42.40 a year more. Even billion in unused sick leave has been accuso, as I have earlier pointed out, this would mulated by civil service employees, and Con

Annual Annual produce a deficit of between $25 and $60

Year gress has no plans to reimburse these em

Total pension pension billion-still further aggravating the 3-per- ployees for this accumulation because the

payments (single) (married

couple) cent deficit the Mills bill is designed to par- retirement fund is in such jeopardy. Some tially correct. administration officials and some Members of

1940. However, let us not be so naive as to think Congress would postpone the day of reckon

$240.00 $499.20 $748. 80 1950.

870.00 870.00 1, 305.60 that if the administration bill is enacted, this ing by simply integrating the Civil Service

1952

1,050.00 930.00 1, 395.60 is where social security tax increases will Retirement Fund into the Social Security 1954.

1, 260.00 1,062.00 1,593 60 stop. The limited scope of the benefits System, and adding the $34 billion of un

1958.

1, 770 00 1, 140.00 1, 713. 60

1962 only 90 days' hospitalization and 180 days' funded liabilities onto the $320 billion in un

2, 467.50 1, 140.00 1, 713.60 nursing home per benefit period, and no doc- funded liabilities of the social security systor bills--will hardly satisfy the needs of tem.

NOTE.-Multiplying annual pension by life expectanpeople who are met with catastrophic ill- If what I have said leaves you with a in

cies of pensioners would reveal the true disproportion ness or disease, or who have large doctor bills, secure feeling over the fiscal policies of your

between the taxes paid and the benefits received. and who do not have the wherewithal to pay Federal Government in general and the sofor them. As time goes on, these areas cial security system in particular, then I of need will be covered--for not only persons would recommend that you make known 65 and over, but for younger people as well. your feelings to not only those Members of This will require a further boost in taxes- Congress who have been supporting these

TABLE 3.Showing relation between value of unless benefits to those who do have the policies, but to the White House as well.

taxes to be paid by present members of wherewithal to meet their medicare costs The proposed tax cut without a cutback in

social security system plus what is left in are dropped from coverage. Mr. Wilbur spending to make room for it affords a good

trust fund and value of benefits expected to Cohen, Assistant Secretary of the Department opportunity to do this. The American peo- be paid to present members under recent of Health, Education, and Welfare, has ple are being teased with the idea that we

acts testified that over the next 10 years, the can have a meaningful tax cut of billions of

[In billions of dollars] earnings base for social security taxes might dollars and at the same time continue to go well go from $5,200, as proposed in the ad- billions of dollars deeper in debt. They

Taxes plus Value of Unfunded ministration's bill, to $9,000. should know-and especially businessmen

trust funds benefits liability Not to be overlooked is the fact that the that you can't get something for nothingsocial security tax is a flat rate applied even on the New Frontier.

1956 act.

217
486

269 against gross salaries and wages. Under the

1958 act.

254
543

289 administration's bill, the first $5,200 of the

TABLES AND EXAMPLES

1960 act.

276
587

311 wages of a low-income taxpayer would be

1961 act.

304
625

321 TABLE 1.-Showing increases in social security taxed exactly the same amount as the first pensions legislated by Congress in order to $5,200 of the income of a high-bracket in- enable pensioners to maintain their pur- NOTE.-Acts of 1956, 1960, and 1961 did not increase come taxpayer. This is just as regressive as chasing power in view of decline in value

pensions, but liberalized coverage (e.g., brought in having a i-percent Federal sales tax to

members of Armed Forces, professional self-employed, of the dollar

permitted optional retirement at age 62, etc.). finance the program. In view of this fact, it is incredible to find the AFL-CIO Washing

[NOTE.-The example is a worker having a $3,000 annual

income base, single at retirement, and "fully covered.” ton officials championing the administra- The 1940 year figure is for a worker retired under the tion's bill. These are the same people who 1935 act. Other figures are for a worker retired under strongly oppose sales tax increases as being

successive acts for years indicated] "regressive.” Now they come along and sup

TABLE 4.-Showing relation between value of port a bill which calls for financing by an

Purchasing

taxes to be paid by new workers coming increase in the regressive social security tax.

power of

into the Social Security system and their

Annual dollar com- Real value
They reply by saying that the average work-

Year
pension pared to of pension

employers, and value of benefits to be paid er would like to put aside a small portion of

1939 dollar

to them upon retirement his weekly paycheck to buy social insurance,

worth 100

cents so that when he retires there will be a fund

Ratio of to cover his hospital and nursing home ex

Taxes Benefits taxes to penses. There are two answers to this:

Cents

benefits 1940(1) the worker is already, through income

$499, 20

99. 2 $495. 20 1950.

870.00

57.8

502. 86 taxes, putting aside a portion of his weekly 1952.

930.00

52. 3
486.39

Billions Billions Percent paycheck to finance the Kerr-Mills program 1954.

1, 062.00

51.7

549. 05
1956 act.

$563
$335

168 which, if amended to cure a few defects and

1958

1, 140.00

48. 1

548.34
1958 act.

641
377

170 1962.

(1)

45.9 523. 26 if given a fair chance to work, will meet the

1960 act.

682
404

169 1961 act.

719 needs of those who cannot afford their doc

431

167 tor, hospital, and nursing home expenses; (2)

1 No change. workers had better not be too sure about having a fund from which to pay benefits when they retire, because of the horrible unfunded liabilities that plague the social se

TABLE 5.---Showing how social security taxes and earnings base have grown curity system.

When future generations come into the hundreds of billions of dollars in debt heri

Combined

Maximum tax rate Employer Employee Self- Selftage we are leaving them and begin to elect

Period
earnings employer tax

employed employed people to Congress, they are not going to be

base
and

ra

tax very happy. They could well cut back the

employee benefits, scrap the program, or enact a new program financed out of general taxation

Percent

Percent anything to get out of a program which 1937-49..

$3,000

2
$30.00 $30.00

(1) forces them to pay far more in taxes than the

1950.

3,000

3

45.00 45.00 83 1951-53.

3, 600

3

54.00 54,00 value of the benefits they could ever hope to

274

$81.00 1954.

3,600

4
72.00 72.00

3

108. 00 receive,

1955-56.

4, 200

4
84.00 84. 00

3

126.00 Other Federal Government trust funds are 1957-58.

412 94. 50 94. 50

338 141. 75 in bad shape besides the old-age and sur

1959.

4, 800

5
120.00 120.00

180.00 1960-61

6
144.00 144.00

412 216.00 vivors insurance trust fund. Also in the

1962

4, 800
644 150.00 150.00

4.7 225. 60 social security system is the disability in 1963-65.

4, 800
774 174.00 174.00

5.4 259, 20 surance trust fund. This is expected to go 1966-67.

4, 800
8% 198.00 198.00

6.2 297. 60 broke between 1969 and 1975 unless some

1968 and after

4,800

944
222.00 222.00

6.9 331, 20 changes, such as those provided in the Mills bill, are enacted. The civil service 1 Not covered.

tax

4, 200

334

4, 800

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