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ance-of-payments expenditures or budg Mr. FULBRIGHT. I believe a pro- crisis of a little more than a year ago, the et expenditures for the budget of some posal was made also for $100 million. President used very little from the emerother country.

Mr. MORSE. I made a proposal for gency fund. That is the testimony of It is not necessary to take action of $100 million.

his witnesses; and I do not know of a that kind overnight; there is no possible Mr. FULBRIGHT. Yes.

more serious emergency that could be emergency connected with it. There is Mr. MORSE. My proposal was imagined. ample time for any President to tell Con- defeated. Then I believe à Senator sug We should take judicial notice of the gress that Brazil wants money for gested that we take $100 million off the

gested that we take $100 million off the fact that there could not be an emerbudget-support purposes or for balance- President's proposal of $300 million, and

President's proposal of $300 million, and gency which would require the immediate of-payments purposes, and that ought to make the amount $200 million. Another availability, at the disposal of the Presirequire congressional action at the time. Senator then suggested $150 million, and dent, of more than $100 million, in order What we are really writing is a blank some Senators suggested that

that the to permit him to take quick action. check for the President. We are writing amount should be $175 million.

Some say, “But the President might a blank approval of his approval of wide, Mr. FULBRIGHT. I think the Senator have previously drawn on the $100 milunchecked discretion. When Brazil has from Oregon has stated the situation lion fund, in connection with another monetary troubles, it makes a plea to the correctly. That is what happened. emergency, and then a new emergency President of the United States, and he Mr. MORSE. That is what happened might develop.” However, any President writes a check on the contingency fund. in committee. I finally went as high as should make sure that he kept his inI do not believe that is good foreign pol- $150 million. I did not like the proposal

$150 million. I did not like the proposal ventory in stock; and if such a situaicy, and I am satisfied it is not good pub- for $175 million; and my recollection is tion developed, the President would lic policy. If that is why Brazil wants that I refused to vote for it. So this sub merely have to ask Congress for an addi$300 million, that is all the more reason ject has been discussed at great length

ject has been discussed at great length tion to the fund, if that became neceswhy we should not grant it. I cannot in committee. Therefore, I am disturbed sary. But the arguments to which I have imagine any emergency arising that that the Mansfield-Dirksen amend referred are really empty and without would require an immediate expenditure ments seek a restoration of the Presi substance. by the President of more than $100 mil- dential figure, which cannot be recon Next, I refer Senators to the use to lion before he had time to obtain the ciled with the amount provided in the which the contingency fund has been put, approval of Congress for whatever money bill or the statement in the committee and last night I placed evidence of this he might need to meet the emergency, if report. I know of no good reason for in in the RECORD. I am satisfied that most he could show that an emergency creasing the amount to $300 million. I of the American people did not know existed.

know of no good reason for going beyond about the purposes for which the fund I do not like to talk about this subject, the committee's recommendation of $175 was used, and I suspect that most Membecause however one phrases his state- million. For the reason I have just bers of Congress did not know, either, ment, those who are enemies of the stated, the proposal of the Senator from for I believe that if the average Senator President and those who are enemies of Louisiana to provide $100 million is ade or Member of the House of Representathe speaker will read into one's words quate. If that amendment should fail, tives were asked what the contingency meanings that were not intended at all. I shall return to the final proposal in the fund is for, he would reply, “For a matter They will seek to leave the impression, Committee on Foreign Relations, $150 vital to the security of the United States as the Senator from Idaho [Mr. million.

which calls for immediate action." CHURCH] said at the beginning of his I am at a loss to understand why we would such an emergency include aid to speech, when he stated he was opposed should chip away at one of the great Bolivia, Ecuador, the Argentine, or to certain parts of the bill, that one is not safeguards to the American people in Brazil, to provide them with budgetary loyal to the President. No Member of our representative system of govern support or assistance in connection with this body is more loyal to the President ment; namely, the principle that Gov- their balance-of-payments problems? than is the Senator from Idaho [Mr. ernment administrators should not, as a Nonsense. I believe the contingency CHURCH]; and I do not yield to anybody matter of principle and policy, be given fund should never be used for such purin my loyalty to the President. But be

But be- unchecked power. That is why I have poses; and if it ever has been used for ing loyal to the President does not mean said it is difficult to discuss this mat such a purpose, now is the time to make that one must act as a rubber stamp. ter, because some will say, “The Senator sure to stop it. The test of loyalty very often is whether from Oregon severely criticized the Pres A case could be made in theory, at one is loyal enough to disagree with the ident of the United States about the least for holding that to be a violation President when he thinks it is in his own exercise of unchecked discretionary of the separation-of-powers doctrine. best interest to disagree with some policy power.” Mr. President, I am talking No President should be given authority of the President's, and to use one's posi- about the presidency, not any particular to use a contingency fund to contribute tion as a Senator to try to change that President. It makes no difference to me to Brazil, Argentina, or any other counpolicy. That is exactly what I am trying who occupies that office; I am discussing try millions of dollars for balance-ofto do in connection with the contingency a basic principle of representative gov- payments matters or for budgetary supfund.

ernment, under our constitutional sys- port matters. Those countries have some I opposed in committee the proposal tem; namely, that it has always been rec- responsibilities in connection with their of the administration for a $300 million ognized that it is not safe, for the welfare own budgets; and before I conclude my contingency fund. I offered an amend of the American people, to provide un remarks I shall show that they have been ment. My recollection is that my first checked discretionary power to any ad- doing a rather poor job of assuming amendment was to reduce the amount to ministrator, at any level of government, those responsibilities. However, so long $ 100 million, as is provided in the pend- including the presidency. The excep as the United States keeps available a ing amendment of the Senator from tions to that principle should be rare; contingency fund which enables them to Louisiana. That was a substantial re and when we come to one which we think beg from the President of the United duction from the President's proposal. is a justifiable exception, we should ex States millions of dollars, they will conI thought a final agreement was reached amine it carefully, to make certain that tinue to do so. on $150 million, but perhaps it was $175 in that connection we are not granting We should not put our President on million. I shall ask the Senator from more power than is needed. That is my such a spot. We should never put our Arkansas what our final agreement was case on this point.

President in a position where an Ambasin committee with respect to the con There is general agreement that, in sador from Brazil or an Ambassador from tingency fund. Did the committee agree view of the situation in the world today, Argentina or an Ambassador from any upon $150 million or $175 million?

the President should have some emer other country, or the President of any of Mr. FULBRIGHT. The committee gency power, and he should have the those countries could, in connection with agreed on $175 million.

ability to react quickly, if necessary, to diplomatic negotiations, say to him, “Mr. Mr. MORSE. There was a proposal for meet an emergency. The Senator from President, you can help us; you have a $150 million, and some Senator proposed Louisiana (Mr. ELLENDER] is stating that contingency fund, and you have discre$200 million. The committee com- $100 million in a contingency fund would tionary authority to help us by giving promised by recommending $175 million, be adequate. I agree. In the Cuban us x million dollars."

We have a duty to protect our Presi- terms of the economic policies about purposes of the programs and the dent, too, and I am not referring to any which I am speaking.

amounts to be available under it if the particular individual; I am referring to In that sense the emergencies have whole section—the whole program-can the occupant of the Presidency of the not been our emergencies, at all, except be circumvented with the contingency United States, whoever he may be. In for the negative effects if some country fund. my judgment, the present operation of is in fiscal difficulty. But that is no

CONGRESS WILL ACT IN REAL EMERGENCY the contingency fund constitutes bad emergency. The emergency has not been

Every year during consideration of public policy, and I believe we should an American emergency, but an emer

this subject we hear a great recital of stop it now. However, if we provide the gency in some other country. That is

the necessity for a large contingency President with $300 million for use as a stretching of the contingency fund

fund for the President to use for purthe contingency fund, we shall not stop concept too far. The contingency fund

poses that were unforeseen when the it. Instead, we shall give him a green should be used only to meet an immedilight, and it would be interpreted as ate emergency in this country so critical foreign aid bill was being written, But

when a true emergency develops the seeming sanction by Congress of the past that theoretically the President does not practice. have time to obtain the necessary legis

President can come to Congress and get

whatever sum he may need almost overTo put it bluntly, contingency funds in lative approval for the course of action Latin America are “bailout" money. that he wishes to take. That is why

night.

Consider a sum even as much as $150 They have been used to bail out Latin I have sought to put the data in the American governments that have not had CONGRESSIONAL RECORD as to how the CONGRESSIONAL RECORD as to how the million, to say nothing of a sum of $300

million. Unless we wish to go along the courage or the determination or the money has in fact been spent. political backing at home to undertake I spoke on this subject on the Senate

with what I think is a misuse of the con

tingency-fund concept in connection the reforms required of them if they are floor on June 25. At that time I pointed

with the balance of payment and budget to obtain funds through the Alliance for out that Latin American nations were Progress program. In my opinion, that finding it too easy to obtain grants and support programs, will Senators name is the ugly reality. It may explain in loans from the United States from non for me an emergency that might arise part why among certain industrial forces Alliance sources. One of these has been which would require more than $150 mil

lion of our money in the hands of the and certain moneyed interests in the the contingency fund. United States there are such powerful

President immediately to meet it?

REQUIREMENTS OF ALLIANCE IGNORED lobbies at work in an attempt to have

If there were an emergency so serious

In my opinion, by far the biggest the bill as it now stands enacted into problem the Alliance for Progress faces

that it would require $150 million, it law. These funds have been used to bail is the faintheartedness of the nations

would be so serious that the President out certain governments, so they could to the south to get started on the eco

would not be in the White House at all. pay their debts to American business, nomic and social development that our

He would be before the joint session of

the from which they have obtained loans or capital is supposed to finance. Many of

Congress telling us about the with which they are involved in some

emergency and asking for whatever acour friends in Latin America are comform of indebtedness. But we cannot plaining that the money is not coming hand. An emergency of that type would

tion was necessary in order to support his justify the use of the contingency fund- as fast as they would like. But the real which consists of money belonging to the problem is that they themselves are not

be so serious, and in all probability our taxpayers of the United States—to help moving fast enough to meet the condi

national security would be so involved, the Government of Brazil or the govern- tions and requirements of sound invest

that in most instances we might be pretment of X country or the government of ment.

ty close to a war. There is still the conY country pay the debts it owes American

And why should they, if they can al

stitutional provision that war must be business concerns X, Y, or Z. However, ways obtain from the contingency fund

declared by the Congress. that has happened; when such bailout the money that they cannot get under

Again, with no relationship to the payments are made with the use of this the requirements of the Alliance itself?

present occupant of the White House, contingency fund, in some instances that

I emphasize that point. It is the posi

unchecked and discretionary power vestis exactly what the result has been. tion of the senior Senator from Oregon

ed in the Presidency through giving When any country needs some money and I make this statement in behalf of

such huge contingency funds to the Presfor that kind of purpose, it ought to be the work that I have done in Latin Amer

ident-for example, letting the President earmarked in the legislation we pass, ica as a member of the Latin American

ica as a member of the Latin American handle unchecked $300 million-might or it ought to be earmarked by the pas- Subcommittee—that in my judgment

lead us into war. sage of new legislation to meet the situa- there have been uses of the contingency

One might say, “That is a theoretical tion. It should not be in a pot called fund that have been inconsistent with

objection. That is not very realistic.” a contingency fund given to a Presi- the objectives of the Alliance for Prog

We have always taken the position that dent of the United States into which he ress program. One of the primary ob

these principles of government are the can dip his hand and, with no authorityjectives of that program is that the coun

safeguards that protect us from abuses from the Congress for the specific pay- tries ought to help themselves. That

that could lead to a loss of our rights. ment, but only by reason of the fact does not mean that they should help

It is easy for the American people to that because of the authorization he has themselves to a contingency fund. That

themselves to a contingency fund. That forget about these abstract principles of the authority in connection with the means that they ought to help them

government, but they have no rights sepcontingency fund to use it in his discre- selves by adopting the necessary eco

arate from them. The American peotion and proceed to pay to Argentina or

nomic reforms and enforcing the neces- ple do not have a single right of freeany other country a sum of money that sary economic reforms that will help to

dom separate from the abstract princiit in turn will use to pay some American stabilize their currency-for example,

stabilize their currency-for example, ples of our Government that guarantee creditors of that government. that will do something about their inter

their freedoms. That is what is involved in the contin- est rates; that will tackle their tax prob One of those principles, bewhiskered gency fund fight. I have not yet talked lem; that will come to grips with the with American history from the days of with a single Senator who did not think economic problems that confront them the Founding Fathers until now, is that a contingency fund was money avail- because of policies that have led to eco we are not free men and women if we able to the President for some great nomic stability in country after country.

give unchecked discretion to mere men emergency that might arise which would I do not believe that the contingency administering government. That is involve the national security of this fund should ever be used to help them to

basically what is involved in the continRepublic, with respect to which the Pres- avoid their responsibilities in connection gency fund fight. I do not believe we ident would have to be ready to move with going ahead with such reforms. can justify giving to any President $300 quickly. Perhaps he would have to move

I have an amendment printed that million to be spent in accordance with his troops somewhere, maneuver the 7th would ban all balance of payment and discretion. Fleet somewhere, or move in air wings budget support aid to Latin America If we wish to talk in terms of the hyposomewhere. Senators have thought of from any source whatever. I do not see thetical, periods of hysteria can sweep it in terms of the security of the coun- much point in Congress authorizing the any country. A wave of hysteria can try. They have not thought of it in Alliance for Progress, setting forth the sweep this country. We can never know

when a political typhoon may arise any gency fund. But if these are of any

gency fund. But if these are of any demanding that they be met before any more than when a weather typhoon may magnitude, such as the Berlin crisis of

magnitude, such as the Berlin crisis of funds are advanced. hit us. But some day someone in the 1961, Congress will still have to provide It would be very good to turn that Presidency who may not have a deep re the funds by special action.

problem over to such a panel. It would spect for these abstract principles of In short, the contingencies covered in be performing a service for the Presigovernment might have the means to the justification for a large contingency dent of the United States. We ought to exercise unchecked discretionary power, fund are not either unforeseen in most relieve the President from the internawhich could very well be exercised in a cases nor are they of a nature that car- tional pressures that are bound to be dictatorial way, and we might find our ries a threat to the security of the United placed upon him because of the availselves at war without a declaration of States. They are expenditures that the ability of this money. We would help war.

executive branch finds it more conven the President if that would exclude use I am well aware of the kind of an ient to make out of the contingency fund of the contingency fund for budget supswer which could be made to that kind than from the other categories of foreign port money and balance-of-payment of argument, namely, that the Senator aid. They are "small potatoes," as in money. is conjuring up a most extreme hypoth- ternational contingencies go.

Now is the time to do it. The issue esis. Let us grant for a moment that The $300 million blank check for this is in our lap. The Ellender amendment it is an absurd hypothesis. Sometimes fund requested by the administration raises the question. In my judgment, it it is only by showing an absurd exam and contained in the Mansfield amend- must be done now, or it will not be done ple that a point or a principle can be ment is completely unjustified. It this year. proved. Absurd or not, if it should hap- should be cut at least to $150 million. We shall never solve the monetary pen, one of those great, precious safe I believe it should be cut to $100 million problems of Brazil by the use of Ameriguards which I call abstract principles to conform to the Ellender amendment.

to conform to the Ellender amendment. can contingency funds. We all know of freedom will be lost. I do not believe As the Senator from Iowa [Mr. MIL- what happened to the economy of Brazil, we can justify taking legislative action LER] said last night, we have a problem and I do not think another dollar should on a proposal that permits such discre in Latin America to get the nations who go to that country out of the contintion. This one does. The $300 million are partners with us in the Alliance to gency fund. cannot be justified, particularly when a do their share. It is, by far, the most im That is not a national emergency. President can come to Congress in 20 portant share, because unless they are

portant share, because unless they are Let us stop kidding ourselves, and the minutes and ask for whatever amount of willing to undertake the policies that people. That does not involve any probmoney he needs to meet a true emer maximize the effectiveness of capital, we lem of American security. It cannot be gency-which he can establish very are wasting time and money on the Al- reconciled with the Alliance for Progquickly with proof-and he can get the liance for Progress program.

I say it cannot be reconciled with money before the sun sets. Any Presi Under the act of Bogotá, and the act the President's own statements when dent knows that. History shows the of Punta del Este, each party is sup- he announced the Alliance for Progress rapidity with which Congress can always posed to prepare an outline of the spe- program. The use to which he has put be counted upon to act when the Re- cific conditions it faces, the progress the contingency fund, in my judgment, public is really in jeopardy.

achieved, the need for external aid, the in many specific instances, has been inThe President did come to Congress fields in which national efforts should consistent with the purposes of the Alin 1961, during the Berlin crisis. Con be expanded, and the structural deficien- liance for Progress program, because he gress very quickly appropriated some $3 cies that must be eliminated to attain made very clear-I supported him then, billion in defense funds, in addition to an annual per capita growth rate of at and I support him now—the objectives the regular defense budget, when the least 2.5 percent. That rate of growth of the Alliance for Progress program. President outlined the need for it.

is the objective of the Alliance. It is an He made it very clear that the program That is how the U.S. Government objective that is projected over a 10- would be one of mutuality and mutual should provide the financing for genuine year period.

assistance. By "mutual assistance" we international emergencies.

Yet since the act of Punta del Este, meant that we would help supply some All the talk about the need for a huge only eight nations have submitted such funds, provided and I underline that contingency fund does not stem from an country plans to the ad hoc commit- word and spell it in capital letters—the argument of need; it stems from an tee chosen from the panel of nine, com- Latin American countries would assist argument of convenience. I add the word monly called the "nine wise men,” cre themselves. "expediency." There is a great deal ated by the Charter of Punta del Este.

A plan is called for. We do not even of expediency in this bill; and expedien- They are Colombia, Chile, Bolivia, Mexi

They are Colombia, Chile, Bolivia, Mexi- have one from the Argentine or Brazil. cy has no place in it. I believe every co, Panama, Honduras, Ecuador, and Economic reforms are called for. There proposal of expediency should be strick Venezuela.

have been no reforms in any such degree en; and this is one of them.

Two of the largest recipients of aid

as was provided for. All Senators need to do is to come to under the Alliance, Argentina and Bra I say to the Senator from Minnesota the desk of the Senator from Louisiana zil, have not submitted any country

zil, have not submitted any country [Mr. HUMPHREY], who has just arrived [Mr. ELLENDER) and take a look at the plan.

in the Chamber, that I have been talkmaterial on the worldwide uses of con One might ask, "Why should they? ing about his amendment, and the contingency fund money that he has pre- They have done pretty well under the tingency fund. I do not ask for agreepared. I have submitted it for Latin contingency fund."

contingency fund.” They are also the ment; I ask only for knowledge on the America and he has submitted it for two nations of the hemisphere that have part of the Senator from Minnesota of the world. As I look down the list of been receiving the largest nonproject what I have said. I believe it is imporcountries that have received assistance amounts from the contingency fund to tant, because I consider him a key figure out of the contingency fund, I am hard meet their balance-of-payments prob- at the present moment in the Senate in put to find a single one or a single pur lems.

connection with the bill. I do not wish pose to which the money was put that One of the issues now facing the Al to embarrass him, but I said off the floor anyone could possibly call a true emer- liance is that of increasing the author- of the Senate, and I say again on the gency. Balance-of-payments loans and ity and responsibility of the nine wise floor of the Senate, that to the Senator budget support grants are a prominent men. Former President Lleras of Co- from Oregon and other Senators who use of contingency funds everywhere in lombia has expressed the view that they agree with his views, the Senator from the world.

should make the basic decisions as to Minnesota is a key figure. A large amount from the contingency whether a given applicant has met con The reason why the powers of the fund has gone for various uses in In

ditions and provided the climate that panel of nine to which I have alluded donesia. A good deal of this, too, was will make a loan or grant under the Al have not been increased has been due to for balance-of-payments problems. liance effective in achieving the objec the opposition of the largest members of

I entirely share the view of the Sen- tive of the growth rate. Mr. Lleras is the Alliance, who believe they can do ator from Louisiana that natural disas- probably right in believing that the panel better by dealing directly with the United ters and a few, rare political crises are would be much tougher than the United States. They know very well that the truly qualified for aid from the contin- States has been in fixing conditions and panel of nine would not allow Alliance

for Progress money to go for the $20 and Jaramillo, leader of Colombia's fledgling (and America overnight, it's predictable that U.S. $25 million nonproject loans that Ar- ultraleftist) Christian Democratic Party. interest in hemisphere affairs will fade again.

Jaramillo is considerably more anticapitalist Partly because the Kennedy administration gentina and Brazil have negotiated with Jaramillo is considerably more anticapitalist the United States, the money for which more anti-American than he is anticapital

than he is anti-Communist and appreciably continues to present foreign aid as an anti

more anti-American than he is anticapital. Communist prophylactic, Congress is more has come from our contingency fund.

ist. It is therefore significant when he turns inclined to cut back on aid once it appears What I am trying to do is not to weak- Castro's picture to the wall with these words: that Latin America is safe from communism en the hand of the President, but to "I thought once that Fidel was the man for the moment. strengthen it. He ought to be relieved who was going to lead the Latin American Herein lies the danger. Nothing really of the type of international pressures revolution. But now I know he is in debt has changed since Castro came out of the which the past use of the contingency to the Russians. He is no nationalist now. Cuban hills nearly 5 years ago to shake the fund are bound to raise.

For this, I blame you Americans. But Cas entire hemisphere—for a season or two.

tro cannot lead the revolution." Therefore, rather than taking a course

Latin America is still ripe for another Castro

If Castro no longer attracts the fiery young any time he comes along. of action of being against the President Jaramillos, he certainly cannot hope to lead or weakening the President, I am seek- calmer, more mature leftists. Indeed, his

We must watch the rate of reform in ing to strengthen the President.

followers today are limited to pistol-packing Latin America. As the Senator from I am hopeful that before the afternoon young hoodlums in secret terrorist bands and Minnesota in a very able speech pointed is over it will be possible to reach an pro-Communist) student leaders at the uni- ress is being made.

guerrilla gangs. Even the radical (and often out the other day, a great deal of progagreement to modify the amendment

ress is being made. Much more must versities have dropped Castro as their pinup to make it possible to get along with a boy.

be made. I do not wish to see us confurther discussion of the foreign aid That means Fidelismo outside Cuba is pri

tribute to retrogression. In my judgprogram.

marily a police problem. No longer really ment, we shall be contributing to retroNo Member of Congress has been more a matter of capturing men's minds, the gression if we accept the Mansfield proanxious than I to see the nations of the struggle against Castroism boils down to the posal to put the contingency fund back hemisphere get moving on their domestic infinitely easier task of containing terrorist to $300 million, when the Foreign Rela

bands. It is a battle that is being won. development programs. No Member of

tions Committee, after a great deal of

It can't even be said that Castro comCongress has deplored more strongly mands full loyalty over the pro-Communist

debate, and after considering one than I the retrogression from the objec- left in Latin America (though he still man

amendment after another, finally settives of the Alliance that have been dis- ages to find enough money to finance ter

tled on the recommendation of the maplayed by the military juntas. No Mem- rorism throughout the hemisphere). Mos

rorism throughout the hemisphere). Mos- jority that $175 million should be an ber of Congress has been more insistent cow-oriented Communists have been quietly acceptable compromise. than I that if the nations of the hemi- belittling him ever since the missile crisis. The Congress of the United States is sphere fail to help themselves, and if they For instance, Gustavo Machado, Venezuela's

For instance, Gustavo Machado, Venezuela's going to play a large role in how they persist in forcing the political choice

veteran Communist chief, hasn't hesitated finally make up their minds in Latin

to drop anti-Castro insults in the presence down to an alternative between com

America. If it is evident from the acof U.S. newsmen. munism and militaristic fascism, they

Yet, Fidelismo at its worst was not an un

tions of the Congress that we really do are going to fall under the heel of com mixed scourge for Latin America. It fright

not have anything more in mind than munism regardless of what happens to ened the Latin American oligarchy into some

a few pious pledges of economic reform Fidel Castro.

token reforms. And it so terrified Uncle on their part, then we can be sure there I wish to put in the RECORD at this Sam that he began to pay some attention to will never be any meaningful economic point a column which appeared in the his southern neighbors.

reform. If we do expect self-help, if we Washington Post this morning—it makes

But now that Fidelismo is not an immedi

do expect them to put our money to use ate danger, the oligarchs may forget about much more sense than the editorial in reform. In fact, there is ample evidence that

in meaningful ways, then we must see the Washington Post this morning to they never intended to give up their old

to it that there are no loopholes through which I referred earlier today. The habits of tax evasion, investing badly needed

which American money can pour when article is entitled "The Post-Castro Era.” capital in Europe and the United States,

they fail in their obligations to the AlIt is written by Evans and Novak. blind indifference to their Nation's welfare liance for Progress. I ask unanimous consent that the enexcept at gunpoint.

It will be seen from an examination tire article may be printed in the RECORD

Moreover, as the immediate threat of

of the figures I put in the CONGRESSIONAL Fidelismo subsides and the Alliance For at this point in my remarks.

RECORD last night that only a few thouProgress proves unable to change Latin There being no objection, the article America overnight, it's predictable that U.S.

sand dollars have been used from the was ordered to be printed in the RECORD, interest in hemisphere affairs will fade again. contingency fund for emergency public as follows: Partly because the Kennedy administration

safety and for relief from natural disTHE PRO-CASTRO ERA

continues to present foreign aid as an anti aster. Much of the rest has gone into

Communist prophylactic, Congress is more Latin America for purposes that are (By Rowland Evans and Robert Novak)

inclined to cut back on aid once it appears emergencies only in the sense that the Fidel Castro is still entrenched as Cuba's that Latin America is safe from communism Communist dictator, but he is a dead pigeon for the moment.

recipients have procrastinated and postelsewhere in Latin America.

poned the day of economic reckoning for

Herein lies the danger. Nothing really has That is the unmistakable conclusion brought back from a 23-day swing through hills nearly 5 years ago to shake the entire changed since Castro came out of the Cuban so long that their economic condition

became precarious. So they were bailed South America's northern fringe. As a revolutionary doctrine capable of in- hemisphere for a season or two. Latin out with our Presidential contingency

America is still ripe for another Castro any fund. flaming the continent's miserable masses, time he comes along.

One of the greatest of our foreign aid Fidelismo is no more. Latin America has moved into the post-Castro era.

Mr. MORSE. Mr. President, it will be failures has been in Turkey, where we From Washington's standpoint, this era noted that they say:

have poured in an average of $300 milought to be less hectic than the 3 or 4 years

Yet, Fidelismo at its worst was not an have nothing to show for it economical

lion every year for 10 years, and still that preceded it. The danger of an epidemic of Castro-inspired nationalistic revolutions

unmixed scourge for Latin America. It is gone. What may replace that danger,

frightened the Latin American oligarchy into ly. Let me tell Senators that if they however, is a return to the bad old days for

some token reforms. And it so terrified want to start the same thing with ArLatin America.

Uncle Sam that he began to pay some atten- gentina and Brazil, the way to do it is to Certainly, Castro is the fallen idol of the tion to his southern neighbors.

continue making grants and loans to hemisphere's left-wing nationalists. His But now that Fidelismo is not an im- them without regard for the require1961 profession of Marxist-Leninist faith

mediate danger, the oligarchs may forget ments of the Alliance for Progress. hurt him a little, but Fidelismo really did about reform. In fact, there is ample evi- They are not the only countries I have not suffer until Castro exposed himself as dence that they never intended to give up

in mind as having failed in their obligaMoscow's puppet during the Cuban missile

their old habits of tax evasion, investing tions to the Alliance for Progress. crisis a year ago. His popularity outside badly needed capital in Europe and the Cuba has been going steadily downward ever United States, blind indifference to their

I believe, as does the Senator from since. nation's welfare-except at gunpoint.

Minnesota [Mr. HUMPHREY], in the obThe typical view of the young Latin Amer

the immediate threat of jectives of the Alliance. I do feel that ican radical today can be seen in the atti- Fidelismo subsides and the Alliance for the lack of progress under it to date is tude toward Castro of Francisco de Paula Progress proves unable to change Latin largely due to the governing classes in

Latin America, who walked up to the I know that he has another meeting Europe had, in a sense, filtered the apbrink of economic and social reform to attend. The Senator from Oregon and plications for funds and balanced them when Castroism looked like a threat and the Senator from Minnesota have visited country by country and region by region, who have now become alarmed at the extensively today about the Alliance for so that when the funds were poured into meaning of their own signatures on the Progress and other aspects of the bill. I an area, such as in Western Europe, the Charter of Punta del Este. To quote am of the opinion that the differences economies of France, Italy, Germany, from an article on the Alliance for which exist can be solved if we will but Belgium, Holland, and Britain were all Progress by President Lleras, which ap sit down and discuss them. That is what weighed and measured at the same time pears in the current issue of Foreign we have been doing.

in reference to the economic aid that was Affairs:

First, I feel that uses have been made to be given. The governments * * * that set their of the contingnecy fund beyond what Such hemispheric coordination and seal on the policy at Punta del Este were not were contemplated or intended by Con planning is needed, in the sense that it fully aware or convinced of its ultimate im

gress. Candor is required in the debate. is really a concept we are trying to plications. In Latin America, perhaps more

In certain cases, some of the budget defi- achieve. There must be some deciding than anywhere else in the world, political leaders have a habit of carrying revolution

cits that have been covered by dipping voices, opinions, and judgments, so that ary statements beyond the point to which

into the contingency fund were not with- we shall not always be held in a bilateral they are really prepared to do * * *. When in the purview or intention of Congress. relationship, fully responsible for any the governments pledged themselves to We are admittedly unhappy in the rejection or retention we might make, bechange fundamentally certain traditional measures taken by the Government of cause we are constantly under pressure structures in the political, social, and eco Brazil to put its fiscal house in reason to give in, lest we be looked upon as nomic life of Latin America-as in the case

able order. Admittedly, we in the United Yankee imperialists or as cruel and of agrarian reform--they were not yet abso

States are not too exacting, because oc tough. lutely determined to carry all this out. The

In this debate I have centered my atunwarrantable delays which later took place, casionally we have some troubles with and which did not give the Alliance for our own housekeeping. But certainly, tention upon the Alliance for Progress, Progress a chance to make the impact on the all available evidence suggests that some because I believe it offers us the most Latin American peoples that was hoped for, of the commitments made under the sensible program we could have, if it is clearly indicate that when Punta del Este Bell-Dantas agreement, the agreement properly developed. witnessed the signing of the most broadly between the U.S. Government and Bra The Senator from Oregon is rendering sponsored and socially advanced document in the common history of our hemisphere,

zil, have not been kept. In Brazil there a good service in outlining to us the qualnot all the signers understood its scope or is a growing problem connected with the ifications and criteria which we must divined its depth and gravity.

budget and inflation. No amount of the follow in connection with this program. Mr. President, I am anxious that the

contingency fund can meet such basic Otherwise we would be "off to the races"

problems nor should it. United States continue to express its be

again, as we are in connection with

The Senator from Oregon is right in southeast Asia, where we have no pian. lief in the Alliance, and to keep up with our pledge to make available the money

pointing out the necessity for having I feel that there we are sort of "boxed to finance it. But as we keep our own

country-by-country plans to make the in.” Furthermore, we really had no plan feet in the fire, we must make it clear

Alliance for Progress work. The Alli- in regard to the African area. Instead,

ance for Progress would become a mock we deal with it country by country. that we are keeping their feet in the

ery, if it were merely an effort to patch But in the Latin American area we fire, too, and that if the governments of Latin America do not live up to the re

up holes in an economy that was break- have tried to develop a hemispheric conquirements of the Alliance, there will be

ing apart at the seams. That is why cept of economic and social rehabilita

the Charter of Punta del Este set forth tion, reform, and progress, within a no money available to them from this country from any source.

certain criteria. We are not now dis- framework of constitutional government. Therefore, we shall be performing a

cussing first aid treatment; we are not As was said several weeks ago by the great service for the Alliance for Prog

talking about prophylactic treatment of Senator from Oregon, some of the first ress, and strengthening the Alliance for

a sick body politic; we are talking about guidelines of the Alliance for Progress, Progress, if we adopt the amendment

basic rehabilitation. That is why the insofar as the United States was conof the Senator from Louisiana (Mr. EL

Alliance for Progress does not always cerned, came from the Foreign Relations LENDER] to reduce the amount of the

make the sensational advances that Committee. They were begun there by contingency fund to $100 million. some people want it to make.

the Subcommittee on Latin American Mr. ELLENDER. Mr. President, will

The fact is that it is designed to build Affairs, on the basis of a study handled the Senator yield?

constructively and surely, rather than by contract, as I recall. Thereafter, the Mr. MORSE. I yield.

for the moment, merely to get over an- study was carefully considered and was other particular crisis.

further studied by the full Foreign RelaMr. ELLENDER. I suggest to the Senator that in 1963 Congress made avail

The Senator from Oregon stated that tions Committee, and subsequently it was able to the President $250 million. Of

9 or 10 countries have fulfilled the re- relayed to the administration.

quirements or met the criteria set forth Mr. MORSE. That is correct. that sum, $100 million was returned to

in the Charter of Punta del Este in ref Mr. HUMPHREY. So this is one of the the Treasury. Of the remainder, for the first 9 months of 1963, as I sought liance. Other countries are moving to

erence to fully participating in the Al- guidelines. President Kubitschek proto point out a while ago, in my judg

liance. Other countries are moving to- vided inspiration and a plan on the Latin ward that objective. The statement

The statement American side. Therefore, the authoriment only $33,756,000 would come within the category of the contingency fund.

that has been quoted from the current zation for the contingency fund should

issue of Foreign Affairs represents the be restored in order to have our program Mr. MORSE. That is what the Senator's figures indicated. That is why I

kind of thinking that ought to be guiding in Latin America developed in accord

our efforts. In my speech on the Al- ance with the country-by-country workasked Senators to go to the desk of the

liance on Tuesday, I quoted at length book. We have had before the Foreign Senator from Louisiana and examine

from the article in Foreign Affairs by Al- Relations Committee, and we shall have them. berto Lleras Camargo.

before the Appropriations Committee, Mr. ELLENDER. The rest of the

The panel of nine, to which the Sen- books which tell us, ahead of time, what money was used, as the Senator indi- ator referred I believe it is sometimes the money will be used for. But no use cated, to assist Argentina, Brazil, and

called the nine wise men-constitutes a will be made of those studies if too large many other countries in balancing their

type of operation that is absolutely es- a contingency fund is made available. payments, and for other purposes that

sential. Our experience, that has given In that event, it will be possible to say, were not connected with, but were for

us the best results, was in connection “Do not worry; we can always dip into eign to, the use of the contingency fund. with the Marshall plan. The moneys the fund.” We would really be saying,

Mr. HUMPHREY. Mr. President, will that were made available under the Mar- “No plan is needed; if the situation bethe Senator yield?

shall plan, while they were made avail- comes too difficult, we will dip into the Mr. MORSE. I yield.

able bilaterally, were made available fund and get some more money from it.” Mr. HUMPHREY. I compliment the only after the regional office of the Eco On the other hand, we are saying that Senator from Oregon on his statement. nomic Cooperation Administration in

Administration in for the Alliance for Progress program, at CIX -1337

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