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However, Mr. President, beginning im- vehicles. More than 4,000 reservations are Each of the ferry ships is to have its statemediately after statehood, and in full already booked for next season. Many of room bunks increased this winter by the realization of the discrimination and the passengers have been motoring tourists Lake Union Drydock Co. of Seattle from the

present 28 to 88 in response to the first year's handicap under which Alaska had suf- who embarked at Prince Rupert, left their

ships at Ketchikan, Wrangell, Petersburg, demand. This is costing $290,000, to be fered as a result of her exclusion from Sitka, and Juneau for overnight stops, then added to the system's $15 million outlay, of the benefits of Federal highway legisla- drove into the interior of Alaska from Haines, which $4.5 million each was paid for contion, Governor Eagan proposed, and the about 80 miles north of this capital city. struction of the ships. Alaska Legislature passed, a proposal for

A $2.6 million vessel, 270 feet long, to ac

BUSINESS IS BENEFITED a $23 million bond issue to create what

commodate 240 passengers and 40 vehicles is

All along the route, according to Gov. is called, in Alaska, the Marine High- William A. Egan and his commissioner of

being built by the Christy Corp. of Sturgeon way. The Marine Highway consists of public works, Richard Downing, hotels, mo

Bay, Wis., for a loop run between Homer,

Kodiak, Seward and probably Anchorage, in large ferries, which carry approximately tels, restaurants, and retail businesses felt

south central Alaska. This is scheduled for 110 automobiles and go from Prince Ru- the effect.

service late next July. pert, in British Columbia, at a point just The ferryship route follows the scenic Insouth of the southernmost part of Alas

side Passage 450 miles from Prince Rupert to

Motorists usually have taken a SALE OF WHEAT TO RUSSIA, AND ka, up the inside passage, which is Skagway. famed for its magnificent scenery, stop- loop trip this first season. They have driven

SAVINGS IN STORAGE, TRANSfrom Haines to Anchorage, Fairbanks, or ping at Ketchikan, Wrangell, Petersburg, other cities, then returned home by way of

PORTATION, AND HANDLING Sitka, Juneau, and on to Haines and the Alaska Highway. Or they went north COSTS Skagway—a distance of approximately by that road and returned by ferryship to Mr. MILLER. Mr. President, on Oc300 miles. Prince Rupert and connecting highways,

tober 15, the Wall Street Journal and The bond issue proposal was sub

Now the system is facing its winter test.

the Washington Post, among other newsmitted to the people of Alaska and was

Business, as expected, has fallen drastically.
Instead of carrying up to 350 passengers and

papers, quoted Secretary of Agriculture approved by them, and the necessary 155 vehicles, as was frequently the case in

Orville Freeman as saying the sale of 150 legislation was then enacted. As a re

the May-through-August period, the Mala- to 200 million bushels of wheat to the sult, beginning last January, service on spina last weekend fought through high Soviet Union would save U.S. taxpayers the new Marine Highway began. It has wintry waves and fog with only 22 pas about $200 million in storage and other been a tremendous success. Thousands sengers, 3 automobiles, a trailer, and a costs. The Journal, in addition, noted: of passengers and automobiles and tractor.

A 40-mile wind kept the vessel waiting trucks have been carried on it, although

He [Freeman] didn't break down this there was little advertising outside of off Ketchikan until daybreak before it could

estimate, but the Agricultural Department put into the dock on its southbound trip.

has estimated the savings in storage, transAlaska to make this new means of transThen, on the way north, rough seas in a

portation, and handling costs would total portation widely known, and the prospect 21-mile-long unprotected Pacific Ocean sec

$225 million during the current fiscal year for next year is even better, now that tion of the route in Dixon Entrance gave

and $30 million in fiscal 1965. every voyager has become an enthusi- passengers a bonus experience.

Since Mr. Freeman appeared to be astic supporter of this new route.

SOFAS TOSSED ABOUT

very positive in quoting the $200 million This development was made without Two hundred-pound sofas skidded on savings, I wrote him, on October 15, any Federal assistance. Alaska, after lounge floors.

Alaska, after lounge floors. Suitcases and tables played a letter in which I asked for a breakhaving been denied for 40 years any Fed musical chairs in staterooms and dinner down of this amount, to show exactly eral highway assistance, and although was delayed until table settings could be

where the savings would be effected. I still not included in the Federal Inter

placed with some assurance of stability. also asked him to reconcile, in that state System, made this most important The following morning, because of dense fog, the Malaspina lay anchored 412 hours

breakdown, this $200 million figure with development entirely on its own. in Wrangell narrows, a 250-foot-wide stretch

the Commodity Credit Corporation's Mr. President, recently a very good ac

with sharp channel turns. Capt. Herbert “Report of Financial Condition and Opcount of this development was written by E. Storey, Jr., the ship’s 38-year-old, Colo erations," as of June 30, 1963. This reLawrence E. Davies, west coast corre rado-born master, pronounced this the port notes that for all-and I emphasize spondent of the New York Times, and roughest trip of the year and he said that

the word "all"-commodities in the was published in the New York Times others might be expected during the win

price-support ter. Once the fog lifted, however, passen

program, storage and western edition on November 2, 1963. The article is entitled “Marine Highway gers exclaimed over the majestic scenery be

handling expenses totaled $377 million, tween the fishing town of Petersburg and

and transportation expenses totaled $170 to Alaska Booms-Ferry System Spurs Juneau.

million. These costs covered the more Tourism and Aids the Economy." I ask “We're making money in summer and than 2 billion bushels of all types of unanimous consent that the article be operating in the red in winter,” Captain grains, including wheat, plus other priceprinted at this point in the RECORD. Storey remarked, “but as time goes on and support commodities. In addition, I

There being no objection, the article trucking picks up this will be a paying op- pointed out that the report showed that was ordered to be printed in the RECORD,

eration in winter as well." as follows:

Only last week the Ottawa government storage, handling, and transportation announced that Canada would keep open on

costs of the 1,082,464,091 bushels of MARINE HIGHWAY TO ALASKA BOOMS—FERRY a trial basis this winter its stretch of the wheat in price support totaled $201,498,SYSTEM SPURS TOURISM AND AIDS THE Haines Cutoff, a road connecting Haines with

448.61 during the last fiscal year. In ECONOMY

the Alaska Highway. This will enable trucks light of these figures, I sought informa(By Lawrence E. Davies)

to use the marine highway all winter and to tion as to how it was possible that a JUNEAU, ALASKA, November 1.-Elated offi- proceed then from Haines to interior Alaska reduction of a mere 150 million bushels cials are reporting outstanding success for

46 the Canadian plan.

out of more than 1 billion-would lower Alaska's new marine highway on which the

costs by $200 million, when the total exState is banking heavily for its economic

RATES ARE REDUCED

pense for all wheat was $201,498,448.61. future.

Some sawmill owners are beginning to use Traffic carried by three ferryships operating

The PRESIDING OFFICER. Under the ferry ships to ferry lumber to Haines and between Prince Rupert, British Columbia, the interior. C. Girard Davidson, former

the morning-hour limitation, the time and southeast Alaska cities and towns is now Democratic national committeeman of Ore

available to the Senator from Iowa has equaling the total projected for the ferry gon, who has moved to Wrangell as president expired. system's fourth year of operation—that is, of a new lumber company, the Alaska-Pacific, Mr. MILLER. Mr. President, I ask for 1966. said at Petersburg:

unanimous consent that I may have an The system made its debut late in Janu “We think we can get kiln-dry lumber additional 3 minutes. ary with one ship, the Malaspina, named for into Anchorage and Fairbanks much more The PRESIDING OFFICER. WithAlaska's largest glacier. Since then two sis cheaply this way than by sending it to out objection, it is so ordered. ter vessels, the Taku and the Matanuska, Whittier by water and loading it aboard each 353 feet long and cruising at 21 miles

Mr. MILLER. I assumed that there railroad cars." an hour, have been added to the fleet. They, In a further move to build winter busi

would be backup figures to support this too, are named for scenic glaciers of the ness, the ferry system is reducing rates $200 million savings estimate-in case State.

through March from $152.50 an automobile anyone asked for proof. Apparently From January through September 30 the and driver between Prince Rupert and

Skag- I was in error in making that assumpships carried 74,603 passengers and 14,042 way to $99.

tion, or perhaps I should not have asked.

SAVINGS TO U.S. TAXPAYER A sale of 150 to 200 million bushels of wheat to the Soviet Union would save U.S. taxpayers about $200 million in storage and other costs, he said. He didn't break down this estimate but the Agriculture Department has estimated the savings in storage, transportation and handling costs would total $225 million during the current fiscal year and $30 million in fiscal 1965.

The charge that we would in effect be paying the usual 60-cent-a-bushel wheat export subsidy to Russia is totally fallacious, Mr. Freeman said. The wheat to be shipped to the Soviets will come from surplus stocks, he said. "The difference between world price and domestic price has long since been paid to the American farmer,” he added.

The Secretary also made these points: The Soviet Union may spend up to $1 billion for wheat this year, and the United States has been selling about $5 to $6 million annually of mostly tallow, hides, and skins to the Soviet Union for the past 30 years.

On October 24, a letter was written to gram results” provides additional data to inme by a J. J. Somers, identified as Direc- dicate that wheat storage and handling extor of the Fiscal Division, Agricultural pense amounted to $144,905,193.50 and transStabilization and Conservation Service, portation expense totaled $56,593,255.11, the

sum total of which adds up to the $201,498,U.S. Department of Agriculture.

448.61 for inventory carrying charges. In Mr. Somers wrote:

light of the fact that items in the price supThis refers to your letter of October 15, port inventory of the CCC as of June 30 in1963, wherein you requested information on cluded not only 1,082,464,091 bushels of the savings in reduced storage expense and wheat but an equal amount of other grains other costs that would accrue from a sale plus other commodities—resulting in total of 150 million bushels of wheat to the So storage and handling expenses of $377,280,viet Union. We shall assemble the infor 950.10 and transportation expenses of $170,mation requested and forward it at an early 114,250.36——how is it possible that a reduction date.

of only 150 million bushels would lower costs

by $200 million as you indicated in your pubIn other words, the figures on which

lic statements? Mr. Freeman stood apparently were It would be appreciated if I could be fursomewhat shaky since his Department nished with a breakdown of where this savhad not even collected the material to ings would occur and how this fits in with back up his statement.

the overall picture as set out above. Mr. President, we have heard much of

Sincerely,

JACK MILLER. the tendency to manage news in Washington and the inclination of officials to

U.S. DEPARTMENT OF AGRICULTURE, fit the facts to the picture the adminis

AGRICULTURAL STABILIZATION AND tration is painting in support of a policy

CONSERVATION SERVICE, FISCAL of the moment. This appears to be an

DIVISION, other indication of that policy. If there

Washington, D.C., October 24, 1963. will be an actual savings of $200 million, Hon. JACK MILLER, based on substance and not mere specu U.S. Senate, lation, then the public should be en Washington, D.C. titled to know where this savings would

DEAR SENATOR MILLER: This refers to your

letter of October 15, 1963, wherein you reshow up. And the public should hold the administration to these figures, ex

quested information on the savings in re

duced storage expenses and other costs that pecting a savings to show up in reduction

would accrue from a sale of 150 million of the Federal budget expenditures. But bushels of wheat to the Soviet Union. if the facts are not correct and were We shall assemble the information repulled out of the air to win support for a

quested and forward it at an early date. policy, then the public should be told

Very truly yours, why the picture was painted in brilliant

J. J. SOMERS, colors, when it should have been a black

Director. and-white sketch. I ask unanimous consent that the let

From the Wall Street Journal, Oct. 14, 1963) ter to Mr. Freeman, dated October 15, the FREEMAN SAYS RUSSIAN WHEAT OUTPUT WAS letter from Mr. Somers, dated October OFF ABOUT 27 PERCENT THIS YEAR-HE ESTI24, the Wall Street Journal, article en

MATES PRODUCTION DROPPED TO 40 MILLION titled "Freeman Says Russian Wheat

TONS; DEFENDS U.S. SALE AGAINST NIXON

CHARGE
Output Was Off About 27 Percent This

WASHINGTON.-Secretary of
Year,” and the Washington Post article Freeman estimated that Soviet wheat pro-

Agriculture
entitled “Wheat Deal Is Defended by duction dropped to 40 million tons this year,
Freeman,” be printed at this point in the down 15 million tons, or 27 percent from
RECORD.

recent years. There being no objection, the letters Mr. Freeman, interviewed on ABC's “Issues and articles were ordered to be printed and Answers” radio and television program, in the RECORD, as follows:

also predicted sales to the drought-stricken

Communist nations may boost U.S. wheat
OCTOBER 15, 1963.

exports to 1 billion bushels this year. Hon. ORVILLE FREEMAN,

“We will sell in a normal year about 650 Secretary of Agriculture,

to 750 million bushels of wheat,” he said. Department of Agriculture,

"This will be another 150 to 200 million Washington, D.C.

bushels * * * but it may be 20 percent more,” DEAR MR. SECRETARY: Recent news reports he added. have quoted you as declaring that a $200

The Secretary said that "in all likelihood" million savings would result from the re

a Soviet delegation will come to Washington duced storage expenses and other costs that

in the next week or 10 days to discuss terms. would accrue from a sale of 150 million

DEFENDS PROPOSED SALES bushels of wheat to the Soviet Union and the satellite bloc.

Mr. Freeman strongly defended the proCould you please advise how this savings posed wheat sales. In reference to former can be reconciled with the cost as outlined Vice President Richard Nixon's charge that in the Commodity Credit Corporation's "Re the decision to sell may be the administraport of Financial Condition and Operations," tion's “major foreign policy mistake * as of June 30, 1963. I would like to direct to date" he said: “A little bit ridiculous your attention to exhibit B under the section * it is almost like a candidate desperentitled "financial statements.” This exhibit ately trying to think up something to say indicates that, for all the commodities in the to get on the front page.” price support program, storage and handling The Secretary said that on his recent expenses totaled $377,280,950.10 and trans swing through U.S. wheat States he found portation expenses totaled $170,114,250.36. about 90-to-1 approval of the sales to ComApplying this to wheat in price support as munist nations. of that period, schedule 17 under "inventory The decision to sell wasn't a political one, operations” shows that inventory carrying he said, and while it will strengthen wheat charges, including storage and handling ex prices and farmer income this year it isn't pense and transportation expense, amounted likely to do so next year when the Presidento $201,498,448.61. Schedule 6 under "pro tial election is held.

(From the Washington (D.C.) Post, Oct. 15,

1963)
WHEAT DEAL IS DEFENDED BY FREEMAN-

AGRICULTURE CHIEF EXPECTS TAXPAYERS TO
SAVE $200 MILLION

(By Arch Parsons)
Secretary of Agriculture Orville Freeman
defended the administration yesterday
against Republican attacks upon President
Kennedy's approval of wheat sales to the
Soviet Union, asserting that the deal with
the Russians will save American taxpayers
some $200 million.

Freeman said that his personal tour of the farm States found people there “about 90 to 1” in favor of the President's decision.

He also commented on former Vice President Richard M. Nixon's charge that the President's approval of the wheat sale was "the major foreign policy mistake of this administration to date, even more serious than fouling up the Bay of Pigs.”

Freeman replied that Nixon's comment was “a little bit ridiculous," adding: “It is almost like a candidate for public office in the middle of the campaign desperately trying to think up something to say to get on the front page.”

Nixon denied on Saturday that he would be a candidate for the Presidency next year.

Next, Freeman took on charges by Senator BARRY GOLDWATER, Republican of Arizona, that the administration's intelligence services were lax in obtaining sufficient prior knowledge of the Soviet wheat shortage and that President Kennedy should have sought Soviet concessions on such matters as Berlin in exchange for the wheat.

DOWN 27 PERCENT Interviewed on the television program “Issues and Answers" (WMAL-ABC), Freeman said that when he talked with Soviet Premier Nikita Khrushchev in July, he got the impression that the Communist leader himself “did not realize the extent of the grain shortage.” The Secretary estimated that because of bad weather this year throughout Europe, the Soviet wheat crop would be down 15 million tons, or 27 percent from recent years.

“To have sought political concessions from Khrushchev,' he said, would have been "a deterrent toward the strengthening and the improving of relationships that were believed to be desirable.''

Trade in "nonstrategic items," Freeman declared, is one of the ways in which the United States can "maximize our relationship," "bring about a relaxation of tension” and “maintain a peaceful world.”

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BEST ILLUSTRATION

from Teodoro Moscoso, U.S. Coordinator sensitively with the vital problems of job The Secretary called the pending wheat for the Alliance for Progress, he informs discrimination, housing conditions and sale "the best, most vivid and dramatic me that not only is the polio immuniza the terrible cancerous cleavage that can illustration of the success of the family tion campaign proceeding, but that it has exist between the Negro and the white with the collective agriculture of the Soviet apparently “broken the back” of the communities—even in a part of my own Union." epidemic.

city of New York. Freeman said the $200 million savings

I ask unanimous consent that excerpts "Who Do You Kill?” was certainly a would result from the reduced storage ex from Mr. Moscoso's heartening report to drama of protest, shocking in its revelapenses and other costs that would accrue me be printed at this point in the tions of what life can be like without from a sale of 150 million bushels of wheat. RECORD.

hope. It showed that the bitterness of Some of the wheat probably will go via

The arrival of the polio vaccine donated by

a feeling of racial injustice knows no the Soviet Union to the Communist satellite nations in Europe, he said, but he doubted

the Lederle Laboratories of American Cyana- sectional boundaries; that there are no whether the deal would enable the Soviet

mid accompanied by 1 million cups from the color bars to disaster, suffering, or love.

Lily-Tulip Co.-all freely transported by Pan I think this trail-blazing effort on the Union to send some of its own wheat to Cuba or Communist China.

American Airways-received wide publicity part of CBS to portray vital issues facAs for the United States selling wheat di

in the country. The rising incidence of para ing the country in valid dramatic terms

lytic polio had begun to cause great fears, should receive the highest commendarectly to these two countries, Freeman said wryly that it would be the last thing they doubt that the people reached by the news especially in the capital city, and there is no

tion. Special praise should go to Wilwould want from “this big, bad, capitalistic of the vaccine's arrival were deeply moved by liam Paley, chairman of the CBS board; Nation of ours." this unusual contribution.

Dr. Frank Stanton, president of CBS We are assured that in spite of recent polit- Industries; James Aubrey, president of

ical events, the immunization campaign is the CBS Television Network, as well as DOMINICAN REPUBLIC POLIO proceeding. We will continue to be in con the author, Arnold Perl; the director, PROJECT CONTINUES

tact with the Pan American Health Organiza- Tom Gries; the producer, Larry Arrick; tion, which has been overseeing the program

and David Susskind and Daniel Melnick Mr. JAVITS. Mr. President, on Au- since the departure of the Public Health gust 27 I reported to the Senate on an Service experts.

who presented this drama.

I ask unanimous consent that an artiextraordinary humanitarian effort to A recent article in El Caribe * meet the threat of a grave polio epidemic nounces the beginning of the second round cle entitled "A CBS Show Stars Two in the Dominican Republic.

of immunizations and explains the impor- Negroes: Atlanta Blacks It Out," pubAfter hearing about the polio threat

tance of returning for a second dose. An- lished in the New York Herald Tribune

other article shows that administration of on November 5, and an article entitled from Mrs. Juan Bosch, wife of the then

the type II vaccine is underway. The first “TV: A Drama of Protest,” published in President of the Dominican Republic, I dosage administered was the type I vaccine, the New York Times of the same date, had the honor of arranging this emer which is considered to have effectively broken

be printed at this point in the RECORD. gency effort, which involved donations by the back of the epidemic.

There being no objection, the articles U.S. firms and assistance by private and We do not expect any change in or neglect

were ordered to be printed in the RECORD, government agencies. The American of this important program in the Dominican

as follows: Cyanamid Co., acting through its chair- Republic. Should anything of that kind oc

Dr. Wilbur Malcolm, donated man,

cur, we will be informed, and in view of your [From the New York Herald Tribune, Nov. 5, considerable and special interest, we would

19631 1,500,000 doses of oral polio vaccine.

transmit such information to you. Juan Trippe, president for Pan Ameri

A CBS SHOW STARS Two NEGROES: ATLANTA

BLACKS IT OUT can Airways, arranged to airlift the vacMr. JAVITS. Mr. Moscoso's state

(By Richard K. Doan) cine to Santo Domingo. The Lily-Tulipment that no change or neglect of this Cup Corp., acting through its president, program is expected is most reassuring. Atlanta TV viewers were denied seeing last Walter Bergman, donated paper cups I know the various U.S. companies and night's episode of the CBS series, “East Side,

West Side.” It starred Diana Sands and needed in administering the vaccine, Government agencies involved will feel

James Earl Jones, both Negroes, in a story Also cooperating in the effort were the most encouraged by the fact that this

in which they portrayed a couple living in Agency for International Development, people-to-people humanitarian effort

a Harlem tenement. AID—the U.S. Public Health Service, the will go on, unaffected by even the gravest Kenneth Bagwell, general manager of Ministry of Health of Dominican Repub- political developments.

WAGA-TV, the CBS outlet in Atlanta, exlic, the Pan American Health Organiza

plained yesterday that the management of tion, and the International Rescue Com

the station felt the telecast would be detriCBS—EAST SIDE-WEST SIDE SERIES mental to good race relations in Atlanta. mittee. The project was a remarkable

Mr. JAVITS.

He said CBS prescreened the episode for demonstration of cooperation between

Mr. President, the

affiliated stations late last week via closed private enterprise and government. "East Side-West Side" series of the Co

circuit. Following the arrival of the vaccine in lumbia Broadcasting System last Mon

"We feel this city has made progress in Santo Domingo and the beginning of the day night featured a powerful drama, race relations,” Bagwell asserted, "and it was immunization program, I received a let- entitled “Who Do You Kill?” I was our conclusion that this program might well ter from our Ambassador to the Domini, privileged to see a preview of this pro impair that progress.” can Republic, the Honorable John Bart- duction before I left for the NATO Par He contended it would be necessary to see low Martin, in which he described the liamentarians' Conference, and I was

the drama and understand the situation

here to appreciate the station's reasons for impact this effort made on the people of impressed by the courage and the sense

blacking out the show. the Dominican Republic. of public responsibility of the network

The program also was not shown in I can think of no other projectand its executives in assuring that this

Shreveport; but a CBS official said the production, the first to employ a pre Louisiana station, KSLA, preempted the He wrote

dominantly Negro cast since the revival “East Side, West Side” time for a local poin my experience here which has better of "Green Pastures," was shown to the litical telecast, not because of the nature of demonstrated the generosity, humanitari- public.

the episode. anism and initiative of private American

But I was distressed to read in the

The Atlanta blackout was the first known citizens. newspapers that this drama was not

instance so far this season of an entertainOn September 25, as everyone knows, telecast to audiences in two southern

ment show being barred by a station because

of a racial theme. an Army junta ousted President Juan cities. I say this because many people Bosch and took over in the Dominican in the South, and with some reason, have [From the New York Times, Nov. 5, 1963) Republic. But despite the grave politi- charged that northerners have a "holier

charged that northerners have a "holier TV: A DRAMA OF PROTEST_PREDOMINANTLY cal developments which followed in that than thou" attitude toward them on NEGRO CAST ENACTS STORY OF FRUSTRATION country, I am gratified to report to the racial matters, although racial discrimi SET IN HARLEM Senate today that the polio immuniza nation is actually both a national as well

(By Jack Gould) tion campaign is proceeding as planned. as a sectional problem. This drama, es Drama of protest, a theme rarely found on Indeed, in a letter which I have received sentially a love story, dealt honestly and

sentially a love story, dealt honestly and television, made an impressive and moving

appearance last night on "East Side, West equalization tax—a tax designed to re tive estimating procedures employed. MoreSide,” a series built loosely around the life strict the outflow of U.S. capital—we

over, data were not available for exports of of a social worker played by George C. Scott. should look at the effect on our balance

oil-based chemicals and the proceeds from The play, "Who Do You Kill?” from the

these exports have not been taken into of payments of the substantial contribupen of Arnold Perl, was the story of frustra

account. tion of the oil industry to the plus side tion experienced by a young couple living in

The figures do not include purchases of the slums of Harlem. The motivating inci of our payments ledger.

goods by U.S. oil companies abroad from fordent was the tragedy of wretched housing

I ask unanimous consent that the re

eign suppliers who had originally obtained the couple's child was fatally bitten by a port to which I have referred be printed such items from the United States. Nor do rat. at this point in the RECORD.

the figures include purchases from the But the larger narrative, told by Mr. Perl There being no objection, the report United States by foreign governments and with lean and perceptive understanding, was ordered to be printed in the RECORD,

business firms which were made possible by dealt with the erosion of the human spirit

income they received as a result of U.S. oil as follows: that accompanies exploitation of a minority.

companies' operations abroad. The damage to dignity that attends unequal THE CONTRIBUTION OF THE U.S. OIL INDUSTRY

Several aspects of the figures are worthy of employment and unequal education finds

TO THE U.S. BALANCE OF PAYMENTS

emphasis: release in bitterness. But in the sequel to In view of continuing national concern 1. The earnings remitted from the foreign the accident that befell the couple's daugh about the deficit in the U.S. balance of pay operations of U.S. oil companies in 1962 ter Mr. Perl made his telling point: Disaster, ments, the Standard Oil Co. (New Jersey) amounted to $1,578 million, an increase of suffering, and finally the healing balm of has made a study of the payments impact nearly 50 percent over 1958. For the 1958-62 love knows no color line.

of international oil trade by U.S. companies. period, profits sent back to the United States "Who Do You Kill?” for all practical pur It is hoped that the new data will provide a amounted to $6,293 million. This represents poses was the first television drama to em useful factual basis for public policy.

a very substantial contribution to the U.S. ploy a predominantly Negro cast since the The survey shows that the foreign activi economy. revival of "Green Pastures.” As the young ties of some 200 U.S. companies engaged in 2. The inflow of income from abroad far mother, Diana Sands was extremely touching international oil operations produced a net exceeds the annual outfiow of funds for addiand heartrending. James Earl Jones, play inflow to the United States of more than $638 tional investments. For 1962, the excess of ing the father, was first rebellious and then million in 1962.

returned earnings over new investment was filled with humility; it was a portrayal of There was a net payments surplus in each $1,040 million. The excess of earnings inflow dimension. Tom Gries did the superb direc of the last 5 years; and the trend has been over investment outflow for the 5-year period tion, and the camerawork of Jack Jriestley upward. The favorable balance by years amounted to $3,930 million. It may be anwas an editorial in itself on Harlem living was as follows:

ticipated that in the future the companies conditions.

Millions operating abroad will continue to undertake 1958.-

$185 substantial plant and equipment expansions, 1959

261 but increasingly expenditures for these pur1960.

376 poses will be financed from retained earnings THE CONTRIBUTION OF THE U.S. OIL

1961..

173 and depreciation funds. INDUSTRY TO THE U.S. BALANCE 1962..

638 3. While net oil imports have risen about OF PAYMENTS

Without these favorable balances from the

22 percent over the past 5 years, the net Mr. JAVITS. Mr. President, I recent oil industry, the total U.S. payments deficit payments surplus from oil industry activities

has increased about 240 percent. ly received a copy of a study on "The during these years would have been substan

The substantial contribution to our balContribution of the U.S. Oil Industry to

tially greater.
The favorable balances seem likely to con-

ance of payments by the foreign activities the U.S. Balance of Payments," which I tinue and increase. This can best be ap

of U.S. oil companies clearly indicates that feel is most enlightening and would be preciated by reference to the fact that free

great caution should be exercised in considof interest to my colleagues. world petroleum demand (outside of the ering proposals which would impair these

operations. In recent months, however, The study is of particular significance United States) increased from 7.7 million

with the stated purpose of helping to reduce in light of the administration's proposal barrels daily in 1958 to 11.6 million barrels

the payments deficit, a number of steps have to place a tax on U.S. capital outfiows. daily in 1962, an increase of nearly 50 percent. By 1970 an additional increase of close

been advocated which would in reality make It is apparent from the data contained to 70 percent above the 1962 level is antici

little or no contribution to this desirable in this study that while U.S. foreign in pated. The U.S. oil industry, which holds objective, while impeding foreign operations vestment represents an outflow of U.S. an equity interest in 60 cercent of proved

of U.S. oil companies and in other ways adfunds in the first instance, subsequent free world reserves outside the United States

versely affecting important national inter

For example, suggestions have been income from such investments overseas plans to continue to participate in this

made to restrict the outfiow of petroleum results in major revenues for the United growth,

investment by discriminatory taxes. The impact of U.S. oil company operations

If States.

adopted, such restrictions would have the on the balance of payments is made up of a The study points out that the foreign

effect of depriving our future balance of number of elements. On the outflow side activities of some 200 U.S. companies en are U.S. purchases of petroleum from abroad

payments of the large net inflow of earnings gaged in international oil operations pro

which such investments generate. Simiand the flow of capital for investments duced a net inflow of more than $638 abroad. On the inflow side are profits re

larly, balance-of-payments arguments have

been used to urge further restrictions on million in in 1962—a figure sufficient sufficient turned to the United States, exports of petro

petroleum imports, which already are leum and refined products, and exports of enough to substantially affect our bal

strictly limited. These measures overlook ance of payments. This inflow is the equipment and supplies for the foreign result of several elements: First, profits down of these items for 1962 in millions of

the interrelationship between imports and operations of U.S. oil companies. The break

exports and other credits in payments comreturned to the United States; second, dollars was as follows:

putations. They also overlook the contribuexports of petroleum and refined prod

tion of imports to developing nations and ucts, equipment, and supplies for the opOutflow:

to lower prices for American consumers. eration and expansion of U.S. oil com

Net oil imports--

$1, 325 It has also been suggested that U.S. miliCapital outflow..

538 tary forces around the world should be panies; third, purchases made by foreign

denied ready access to nearby sources of governments and business firms made

Total outflow--

1, 863 petroleum products and should be required possible as the result of the income re

to purchase and ship these products from ceived from the U.S. companies; and Inflow:

the United States. This measure would fourth, proceeds from exports of oil Exports of equipment, supplies,

have little significant impact on the balance based chemicals.

services.--

923

of payments because many of these purThis substantial contribution to our

Remitted profits.

1, 578

chases are paid for in dollars which never balance of payments by the foreign ac

leave the United States; and a substantial Total inflow--

2, 501 tivities of U.S. oil companies serves to

portion of these purchases involves military indicate that great caution must be exer

needs which could not be satisfied by supNet inflow..

638 cised in considering proposals which

plies from the United States. Moreover, the

The attached table reports the data for all proposed restriction would increase costs to would in any way slow up this inflow. 5 years.

the military forces and reduce their mobility In weighing the balance-of-payments

The favorable balances shown have un and effectiveness. It would also impair ecoeffects of such proposals as the interest doubtedly been understated by the conserva nomic advancement and weaken support

1,055

1,064

1, 198

2, 118

for the United States in those developing ments are taken into account, it is clear that ally for developed countries; biennially for nations in which offshore procurement is the net effect of foreign operations by U.S. less developed countries). Furthermore, a concentrated.

oil companies is a very significant and grow contracting party that institutes new reIn weighing the balance-of-payments ef ing contribution to the plus side of our pay strictions or substantially intensifies existing fects of these or similar suggestions, it is es ments ledger. These activities benefit free restrictions is required to consult with the sential to consider all elements in our pay world nations and materially strengthen our contracting parties soon thereafter, or, if ments balances and the long-term interrela own economy and our own national se possible, beforehand. tionships among them. When all these ele curity.

The consultations deal with the balance

of-payments position and prospects of the Historical U.S. payments balance-Oil industry

consulting country, alternative measures to

restore equilibrium, the system of restric[In millions of dollars]

tions in force and the methods used in ad

ministering them, and the effects of the re1958 1959 1960 1961 1962 strictions. Full consideration is also given

to the nature, effects, and reasons for any Net oil imports.-

1, 078

discrimination in the administration of the

1,325 Capital outflow.

649
511
455
747

538

import restrictions.
Total debits...-
1,727 1, 566

2. Reports on consultations
1,945
1,519

1,863

The contracting parties adopted reports on Remitted profits.--

1, 169
1,100 1, 143

1,303

1,578

consultations held during 1962 with 13 counCapital equipment and other exports..

743
727
752
815

923

tries (Brazil, Ceylon, Denmark, Finland, Total credits.

1,912 1,827
1,895

2, 501 Ghana, Greece, India, Israel, Japan, New

Zealand, Pakistan, South Africa, and UruNet surplus...

185
261
376
173

638

guay) which impose import restrictions un

der either article XII or article XVIII:B to Sources: The Census Bureau publishes detailed figures on volumes and values of oil imports and exports. Capital

protect their balance of payments. outflows and remitted profits are reported regularly in publications of the Department of Commerce. For the other During the consultations, which were con2 categories--services and exports of nonoil goods to U.S. oil companies operating abroad-only incomplete or occasional survey data are available from official sources. Consequently, it has been necessary to extrapolate these figures

ducted by the Committee on Balance of Payfrom specific data points, using industry trends to estimate the missing figures. The reasonableness of the industry

ments Restrictions, the U.S. representatives estimates has been checked against the experience of the Standard Oil Co. (New Jersey), which has compiled the continued their efforts to encourage the condata for its own activities.

sulting countries to relax and eliminate their

restrictions as rapidly as possible and to The PRESIDING OFFICER. The The Department of Commerce has held insure that, where restrictions were still contime of the Senator has expired. extensive hearings with representatives sidered necessary, they did not discriminate Mr. JAVITS. Mr. President, I ask of over 40 U.S. industries during the

against American goods. The U.S. repre

sentatives also urged, in appropriate cases, unanimous consent that I may have an early part of 1963 in order to be in a po

that the consulting countries, when relaxadditional 3 minutes. sition to know specifically which non

ing restrictions, avoid the adoption of measThe PRESIDING OFFICER. With tariff barriers cause the biggest problems

ures such as increased customs duties and out objection, it is so ordered.

for our exports. There is increasing new internal taxes bearing heavily on imsentiment among leading industrialists ports which, whether or not consistent with

that reducing nontariff barriers could be GATT, have the effect of offsetting the benNEGOTIATIONS ON NONTARIFF

as rewarding as persuading countries to efits to be expected from liberalization. give further tariff concessions. Three

In the consultation with Japan, the United BARRIERS NEEDED

types of European restrictions; internal States representatives welcomed the substanMr. JAVITS. Mr. President, I wish to taxes on top of high tariffs; high cost- past year in relaxing import restrictions, but

tial progress which Japan had made in the call to the attention of the Senate the base methods of calculating ad valorem

noted that a wide range of goods of interest Seventh Annual Report of the President duties and taxes; and, discriminatory to American exporters remained subject to on the Trade Agreements Program regulations against marketing, packing control and urged Japan, in view of its which was recently transmitted to the and advertising form the basis for most steadily improving balance of payments and Congress. of the U.S. complaints.

reserve position, to make further rapid progThis report summarizes the progress I believe that the United States could

ress in eliminating the remaining restricthat has been made in the field of liberal make a major contribution to liberal

tions. South Africa, which traditionally has izing world trade in 1962 under the Trade

a surplus on current transactions and which izing world trade during the forthcom

has experienced a remarkable increase in its Agreements Extension Act of 1958 and ing GATT negotiations by serious nego gold and foreign exchange reserves since the Trade Expansion Act of 1962. tiation on nontariff barriers.

curbing capital outflows in June 1961, was These nontariff barriers inhibit trade I ask unanimous consent that the pressed hard for prompt and substantial libas much as high tariffs. We acted on chapter entitled “Nontariff Restrictions eralization. New Zealand, which intensified the question in the NATO Parliamen Upon Trade" be printed in the RECORD

its restrictions substantially in 1961 followtarians Conference in Paris, on which I at the conclusion of my remarks.

ing a sharp deterioration in its reserve posishall report to the Senate next week. There being no objection, the chapter and was encouraged to continue to do so.

tion, has again begun to relax its restrictions In the meantime, I call attention to the was ordered to be printed in the RECORD, Denmark and Finland were urged to continue need for undertaking negotiations in the as follows:

the steady progress they have been making countries of a general agreement on tar

[From the Seventh Annual Report on the in recent years in removing their relatively iffs and trade.

Trade Agreements Program, message from few remaining restrictions. I wish to call attention particularly to the President of the United States to the The U.S. representatives commended Israel the chapter entitled “Nontariff Restric Congress, Oct. 21, 1963)

for the steps it had taken to simplify its extions Upon Trade," a subject which was IV. NONTARIFF RESTRICTIONS UPON TRADE

change system and relax restrictions on imdiscussed during the 20th session of

ports and pressed for further liberalization.

A. BALANCE-OF-PAYMENTS RESTRICTIONS the contracting parties to the GATT

In the consultations with Brazil, Ceylon,

1. General and which I will again be the subject

Ghana, Greece, India, Pakistan, and Uruguay, for negotiations at the forthcoming ses

The GATT contains a broad prohibition the U.S. representatives took note of the

against the use of quotas, licensing require- special problems which those countries faced sion of the GATT in Geneva.

ments, and other quantitative (nontariff) in pursuing their programs of economic deI believe the elimination of nontariff restrictions on imports. It recognizes, how- velopment. They stressed, however, the disbarriers should be a primary task of the ever, that a contracting party may be justi- advantages which a heavy burden of restricforthcoming talks, since the need for fied in the use of such restrictions when its tions entailed for both importing and exmany of the nontariff restrictions im- monetary reserves are very low or when it porting countries and urged the consulting posed during the postwar year for balis faced with an imminent threat of a serious

countries to reduce their reliance on restricance-of-payments reasons have now disdecline in its reserves.

tions to the greatest extent possible. The Yet such restrictions still

All contracting parties maintaining re U.S. representatives raised with Brazil and appeared.

strictions to safeguard their external finan- Uruguay the question of the discrimination constitute a significant impediment to cial positions are required to consult with against American exports which results when the expansion of world trade.

the contracting parties periodically (annu, those countries exempt imports from other

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