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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
BUSINESS IS BENEFITED
A $2.6 million vessel, 270 feet long, to aca $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
Bay, Wis., for a loop run between Homer, way. The Marine Highway consists of public works, Richard Downing, hotels, mo- 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 ka, up the inside passage, which is Skagway. ,
SALE OF WHEAT TO RUSSIA, AND famed for its magnificent scenery, stop- loop trip this first season. They have
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.
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
He [Freeman] didn't break down this trucks have been carried on it, although
off Ketchikan until daybreak before it could there was little advertising outside of
estimate, but the Agricultural Department
has estimated the savings in storage, transAlaska to make this new means of trans- put into the dock on its southbound trip. Then, 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
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 ofi- proceed then from Haines to interior Alaska
reduction of a mere 150 million bushelscials are reporting outstanding success for
cities. About 46 miles of road is involved in
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
available to the Senator from Iowa has Democratic national committeeman of Oreequaling 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
Mr. MILLER. I assumed that there each 353 feet long and cruising at 21 miles 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. On October 24, a letter was written to gram results" provides additional data to in
SAVINGS TO U.S. TAXPAYER me by a J. J. Somers, identified as Direc- dicate that wheat storage and handling ex
A sale of 150 to 200 million bushels of tor of the Fiscal Division, Agricultural pense amounted to $144,905,193.50 and trans
wheat to the Soviet Union would save U.S. Stabilization and Conservation Service, portation expense totaled $56,593,255.11, the
taxpayers about $200 million in storage and sum total of which adds up to the $201,498,U.S. Department of Agriculture.
other costs, he said. He didn't break down 448.61 for inventory carrying charges. In
this estimate but the Agriculture DepartMr. Somers wrote: light of the fact that items in the price sup
ment has estimated the savings in storage, This refers to your letter of October 15, port inventory of the CCC as of June 30 in
transportation and handling costs would 1963, wherein you requested information on cluded not only 1,082,464,091 bushels of
total $225 million during the current fiscal the savings in reduced storage expense and wheat but an equal amount of other grains
year and $30 million in fiscal 1965. other costs that would accrue from a sale plus other commodities—resulting in total
The charge that we would in effect be of 150 million bushels of wheat to the So- storage and handling expenses of $377,280,
paying the usual 60-cent-a-bushel wheat viet Union. We shall assemble the infor- 950.10 and transportation expenses of $170,
export subsidy to Russia is totally fallacious, mation requested and forward it at an early 114,250.36—how is it possible that a reduction
Mr. Freeman said. The wheat to be shipped date. of only 150 million bushels would lower costs
to the Soviets will come from surplus stocks, by $200 million as you indicated in your pubIn other words, the figures on which
he said. “The difference between world lic statements? Mr. Freeman stood apparently were
price and domestic price has long since been It would be appreciated if I could be fur
paid to the American farmer,” he added. somewhat shaky since his Department nished with a breakdown of where this sav
The Secretary also made these points: The had not even collected the material to ings would occur and how this fits in with
Soviet Union may spend up to $1 billion for back up his statement. the overall picture as set out above.
wheat this year, and the United States has Mr. President, we have heard much of
been selling about $5 to $6 million annually
JACK MILLER. the tendency to manage news in Wash
of mostly tallow, hides, and skins to the ington and the inclination of officials to
Soviet Union for the past 30 years.
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
[From the Washington (D.C.) Post, Oct. 15, DIVISION,
1963] other indication of that policy. If there
Washington, D.C., October 24, 1963. will be an actual savings of $200 million, Hon. JACK MILLER,
WHEAT DEAL IS DEFENDED BY FREEMANbased on substance and not mere specu- U.S. Senate,
AGRICULTURE CHIEF EXPECTS TAXPAYERS TO lation, then the public should be en- Washington, D.C.
SAVE $200 MILLION titled to know where this savings would DEAR SENATOR MILLER: This refers to your
(By Arch Parsons) show up. And the public should hold
letter of October 15, 1963, wherein you re- Secretary of Agriculture Orville Freeman the administration to these figures, exquested information on the savings in re
defended the administration yesterday duced storage expenses and other costs that against Republican attacks upon President pecting a savings to show up in reduction
would accrue from a sale of 150 million of the Federal budget expenditures. But
Kennedy's approval of wheat sales to the bushels of wheat to the Soviet Union. if the facts are not correct and were
Soviet Union, asserting that the deal with We shall assemble the information re
the Russians will save American taxpayers pulled out of the air to win support for a quested and forward it at an early date.
some $200 million. policy, then the public should be told
Very truly yours,
Freeman said that his personal tour of why the picture was painted in brilliant
J. J. SOMERS,
the farm States found people there “about colors, when it should have been a black
90 to 1” in favor of the President's decision. and-white sketch.
He also commented on former Vice PresI ask unanimous consent that the let
[From the Wall Street Journal, Oct. 14, 1963] ident Richard M. Nixon's charge that the ter to Mr. Freeman, dated October 15, the FREEMAN SAYS RUSSIAN WHEAT OUTPUT WAS President's approval of the wheat sale was letter from Mr. Somers, dated October OFF ABOUT 27 PERCENT THIS YEAR—HE ESTI- “the major foreign policy mistake of this
MATES PRODUCTION DROPPED TO 40 MILLION administration to date, even more serious 24, the Wall Street Journal, article en
TONS; DEFENDS U.S. SALE AGAINST NIXON than fouling up the Bay of Pigs.” titled "Freeman Says Russian Wheat
Freeman replied that Nixon's comment was Output Was Off About 27 Percent This
WASHINGTON.-Secretary of Agriculture
“a little bit ridiculous," adding: “It is almost Year," and the Washington Post article Freeman estimated that Soviet wheat pro
like a candidate for public office in the midentitled “Wheat Deal Is Defended by duction dropped to 40 million tons this year,
dle of the campaign desperately trying to F1 man," be printed at this point in the down 15 million tons, or 27 percent from
think up something to say to get on the RECORD. recent years.
front page.” There being no objection, the letters Mr. Freeman, interviewed on ABC's “Issues
Nixon denied on Saturday that he would and articles were ordered to be printed and Answers" radio and television program,
be a candidate for the Presidency next year. in the RECORD, as follows: also predicted sales to the drought-stricken
Next, Freeman took on charges by Senator
that the administration's intelligence servHon. ORVILLE FREEMAN,
"We will sell in a normal year about 650 ices were lax in obtaining sufficient prior Secretary of Agriculture,
to 750 million bushels of wheat," he said. knowledge of the Soviet wheat shortage and Department of Agriculture,
“This will be another 150 to 200 million that President Kennedy should have sought Washington, D.C. bushels * * * but it may be 20 percent more,”
Soviet concessions on such matters as Berlin DEAR MR. SECRETARY: Recent news reports he added.
in exchange for the wheat. have quoted you as declaring that a $200 The Secretary said that "in all likelihood"
DOWN 27 PERCENT million savings would result from the re
a Soviet delegation will come to Washington duced storage expenses and other costs that
Interviewed on the television program "Isin the next week or 10 days to discuss terms. would accrue from a sale of 150 million
sues and Answers” (WMAL-ABC), Freeman bushels of wheat to the Soviet Union and
DEFENDS PROPOSED SALES
said that when he talked with Soviet Prethe satellite bloc.
Mr. Freeman strongly defended the pro- mier Nikita Khrushchev in July, he got the Could you please advise how this savings posed wheat sales. In reference to former impression that the Communist leader himcan be reconciled with the cost as outlined Vice President Richard Nixon's charge that self “did not realize the extent of the grain in the Commodity Credit Corporation's "Re- the decision to sell may be the administra- shortage.” The Secretary estimated that port of Financial Condition and Operations," tion's “major foreign policy mistake * because of bad weather this year throughas of June 30, 1963. I would like to direct to date" he said: “A little bit ridiculous out Europe, the Soviet wheat crop would your attention to exhibit B under the section * it is almost like a candidate desper- be down 15 million tons, or 27 percent from entitled "financial statements.” This exhibit ately trying to think up something to say
recent years. indicates that, for all the commodities in the to get on the front page.”
"To have sought political concessions from price support program, storage and handling The Secretary said that on his recent Khrushchev,' he said, would have been “a expenses totaled $377,280,950.10 and trans- swing through U.S. wheat States he found deterrent toward the strengthening and the portation expenses totaled $170,114,250.36. about 90-to-1 approval of the sales to Com- improving of relationships that were beApplying this to wheat in price support as munist nations.
lieved to be desirable."! of that period, schedule 17 under "inventory The decision to sell wasn't a political one, Trade in “nonstrategic items," Freeman operations” shows that inventory carrying he said, and while it will strengthen wheat declared, is one of the ways in which the charges, including storage and handling ex- prices and farmer income this year it isn't United States can "maximize our relationpense and transportation expense, amounted likely to do so next year when the Presiden- ship,” “bring about a relaxation of tension" to $201,498,448.61. Schedule 6 under "pro- tial election is held.
and “maintain a peaceful world.”
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 Lily-Tulip Co.-all freely transported by Pan mid accompanied by 1 million cups from the color bars to disaster, suffering, or love.
I think this trail-blazing effort on the Union to send some of its own wheat to
American Airways received wide publicity part of CBS to portray vital issues facCuba or Communist China.
in the country. The rising incidence of para- ing the country in valid dramatic terms As for the United States selling wheat di
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 especially in the capital city, and there is no
tion. Special praise should go to Wilwould want from "this big, bad, capitalistic
doubt that the people reached by the news Nation of ours."
of the vaccine's arrival were deeply moved by liam Paley, chairman of the CBS board; 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
who presented this drama. gust 27 I reported to the Senate on an Service experts.
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 President of the Dominican Republic, I dosage administered was the type I vaccine,
the type II vaccine is underway. The first "TV: A Drama of Protest,” published in had the honor of arranging this emer
the New York Times of the same date, 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 ocman, Dr. Wilbur Malcolm, donated
cur, we will be informed, and in view of your [From the New York Herald Tribune, Nov. 5, 1,500,000 doses of oral polio vaccine. transmit such information to you. considerable and special interest, we would
1963] Juan Trippe, president for Pan Ameri
A CBS SHOW STARS Two NEGROES: ATLANTA Mr. JAVITS. Mr. Moscoso's state
BLACKS IT OUT can Airways, arranged to airlift the vac
(By Richard K. Doan) cine to Santo Domingo. The Lily-Tulip ment 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 demonstration of cooperation between
He said CBS prescreened the episode for 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?”
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
the drama and understand the situation low Martin, in which he described the liamentarians' Conference, and I was
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
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.
instance so far this season of an entertainnewspapers that this drama was not On 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 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 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 experienced by a young couple living in tion of the oil industry to the plus side
The figures do not include purchases of the slums of Harlem. The motivating inciof 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
173 and depreciation funds. INDUSTRY TO THE U.S. BALANCE 1962.
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
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 outflows. 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
ests. 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
adopted, such restrictions would have the The study points out that the foreign on the balance of payments is made up of a
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 infiow of earnings gaged in international oil operations pro
which such investments generate. and the flow of capital for investments
Simiduced 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 1962—a figure sufficient turned to the United States, exports of petro
petroleum imports, which leum and refined products, and exports of
already are enough to substantially affect our bal
strictly limited. equipment and supplies for the foreign
These measures overlook ance of payments. This inflow is the
the interrelationship between imports and result of several elements: First, profits
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
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.
923 of payments because many of these purThis substantial contribution to our
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
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.-
discrimination in the administration of the 1, 078
1,325 Capital outflow.
538 import restrictions. Total debits...
1, 727 1, 566
1, 945 1,519
2. Reports on consultations 1,863
The contracting parties adopted reports on Remitted profits.--
consultations held during 1962 with 13 counCapital equipment and other exports..
tries (Brazil, Ceylon, Denmark, Finland, Total credits.
Ghana, Greece, India, Israel, Japan, New
Zealand, Pakistan, South Africa, and UruNet surplus...
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
All contracting parties maintaining re- U.S. representatives raised with Brazil and appeared. Yet such restrictions still
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