Foreign shipyards built with aid money and cheap foreign steel are pushing our own shipbuilding industry to the wall. Since 1948, more than $600 million in aid has gone

to build or modernize foreign yards. Add the assistance given to foreign steel mills, and American shipbuilders are working under a $1 billion handicap.

MUSHROOMS FROM TAIWAN

Even American mushroom growers have hired a Washington attorney to seek relief from the competition of the U.S.-financed mushroom industry in Taiwan. Uncle Sam's experts looked around for some way to help the economy of Taiwan and decided mushrooms might do the trick. They sent over

prize spores, taught the peasants how to

cultivate. The new industry literally mushroomed.

The first mushrooms from Taiwan started coming into this country in 1960. Exports doubled the following year, doubled again in 1962. Now Formosan mushrooms account for 25 percent of American consumption of the edible fungi.

It is hard to disagree with those American businessmen who are plaintively asking a rather deaf Uncle Sam: "Isn't it time some charity began at home?"

FOREIGN AID

Mr. JAVITS. Mr. President, the meaning of the Senate's action in adopting amendments banning aid to Indonesia and the United Arab Republic is to place Congress squarely behind the principle that our aid should be used for the purposes for which it is intended; that is, for the achievement of higher living standards, peace, and stability.

When it becomes obvious to the President that our aid is being misused and diverted by the rulers of the abovementioned or any other countries for aggressive actions and to develop a military potential which threatens the basic objectives of our policy, then Congress has said very firmly that it wants such aid stopped. We cannot succeed in our efforts for peace in a free world if we continue to assist those who are determined to undermine it. And we should not be placed in the embarrassing predicament of giving aid to countries who promptly dissipate it by threatening or engaging in hostilities with each other or with other nations who are also receiving our assistance.

We would thus drive home to those who are misusing our assistance the uselessness of their aggressive actions and the fact that the United States will not put up with a continuation of the abuse of this program. We have put reasonable conditions on our aid to Latin America to insure that our objectives will be met. There is no reason why we cannot expect as much from the application of our assistance to other countries. We must be sure that U.S. assistance is used to support and reinforce peace between the nations who are receiving our aid, and become a resource for the development of higher living standards and greater economic cooper

ation for peace.

Mr. President, I think it is important, since the Senate took some action yesterday on the foreign aid bill which involved Yugoslavia, Indonesia, and the United Arab Republic, to show the con

tinuity and the unity of policy which the Senate has adopted in that regard.

As I see it, the Senate intended to place itself squarely behind the principle that when this country's aid is being used for purposes for which we did not intend it, we should ask the President to cut it off. And when it becomes obvious to the President that our aid is being diverted to aggressive purposes by those who are ruling in particular countries which we aid, or to develop their military potential, through misuse of the objectives of our policy, we will not aid such countries.

The aid which moves out from this country is unilateral aid. Therefore, I do not consider this as invidious conduct, because we will drive home to those who are using our assistance the uselessness of their aggressive action and the fact that the United States will not put up with a continuation of the abuses which they practice.

We have provided reasonable limitations on use of aid under the Alliance for Progress to make sure that our objectives will be met. There is no reason why we should not expect as much by placing conditions upon our assistance to other countries. We should make sure that our assistance is used for the purposes of bringing about a higher standard of living and for social and economic stability. We must be sure it is not used as a substitute for other resources which are used for aggression, or to buttress rulers who would engage in subversion or threaten to destroy other countries which we are similarly aiding.

So I see a real continuity of policy in respect to the provision which we adopt ed as to Yugoslavia, Indonesia, and the United Arab Republic.

Since I know it must be implemented by the State Department, I hope the administration will understand our purpose and that it will not be necessary for us to proceed in a condign way to try to limit what should be the free hand of the President of the United States to deal with the foreign policy of this country.

ORDER OF BUSINESS

Mr. DOMINICK obtained the floor. Mr. MANSFIELD. Mr. President, will the Senator yield, with the understanding that he will not lose the floor, so as to permit the consideration of bills to which there is no objection? The Senator from Colorado can then be recognized for the full 3 minutes, and more if he needs it.

Mr. DOMINICK. I yield.

The PRESIDING OFFICER. Without objection, it is so ordered.

THE CALENDAR

Mr. MANSFIELD. Mr. President, I ask unanimous consent that the Senate proceed to the consideration of Calendar No. 610, S. 2079, and certain other measures to which there is no objection.

The PRESIDING OFFICER. Is there objection? The Chair hears none, and it is so ordered.

STRIKING OF MEDALS IN COMMEMORATION OF FEDERAL HALL NATIONAL MEMORIAL, CASTLE CLINTON NATIONAL MONUMENT, AND STATUE OF LIBERTY

The Senate proceeded to consider the bill (S. 2079) to provide for the striking of three different medals in commemoration of the Federal Hall National Memorial, Castle Clinton National Monument, and Statue of Liberty National Monument-American Museum of Immigration in New York City, N.Y., which had been reported from the Committee

on Banking and Currency, with amendments, on page 3, line 3, after "December 31,", to strike out "1973" and insert "1965", and in line 4, after the word "struck", to insert "under the authority of this Act"; so as to make the bill read:

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, in commemoration of three congressionally designated national historic shrines located in New York City, New York, scheduled by the National Park Service of the United States Department of the Interior for official opening during the New York World's Fair, 1964-1965; namely, Federal Hall National Memorial, Castle Clinton National Monument, and Statue of Liberty National Monument American Museum of Immigration, the Secretary of the Treasury is authorized

and directed to strike and furnish to the Board a Liberty Series of three different New York City National Shrines Advisory

medals of a grand total of no more than seven hundred and sixty-five thousand medals with suitable emblems, devices, and inscriptions to be determined by the New York City National Shrines Advisory Board and subject to the approval of the Secretary of the Treasury. The medals shall be made and delivered at such times as may be required by the advisory board in quantities of not less than two thousand. The medals shall be considered to be national medals within the meaning of section 3551 of the Revised Statutes.

SEC. 2. The Secretary of the Treasury shall cause such medals to be struck and furnished at not less than the estimated cost

of manufacture, including labor, materials, dies, use of machinery, and overhead expenses; and security satisfactory to the Director of the Mint shall be furnished to indemnify the United States for full payment of such cost.

SEC. 3. The medals authorized to be issued

pursuant to this bill shall be of such size

or sizes and of such metals as shall be de

termined by the Secretary of the Treasury in consultation with such advisory board.

SEC. 4. After December 31, 1965, no further medals shall be struck under the authority of this Act.

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

Mr. JAVITS. Mr. President, on behalf of myself and my colleague [Mr. KEATING] I thank the majority leader for bringing up S. 2079, the medal bill.

Mr. MANSFIELD. Mr. President, I ask unanimous consent to have printed in the RECORD an excerpt from the report (No. 633), explaining the purposes of the bill.

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

PURPOSE OF THE BILL

S. 2079 would provide for the issuance of a liberty series consisting of three different national medals to commemorate three congressionally designated national historic shrines located in New York City: the Federal Hall National Memorial, the Castle Clinton National Monument, and the Statue of Liberty National Monument American Museum of Immigration. Up to 765,000 of these medals would be furnished to the New York City National Shrines Advisory Board, which would reimburse the mint for the full cost

of manufacture for resale to provide funds to complete these shrines.

The Treasury Department has recommended that the bill, as introduced, be amended to limit the time within which these medals may be struck to 2 years, instead of the 10 years proposed, and has suggested an additional technical amendment. Sponsors of the bill have agreed to these amendments which are reflected in the bill as reported.

The importance of the historic shrines which these medals would commemorate, and their relationship to the 1964 New York World's Fair, are set forth in a letter from Senator JAVITS which is printed below as part of this report. A letter from the Treasury Department commenting on the bill is also printed below as part of the report.

FINANCIAL ASSISTANCE TO VICVICTIMS OF FUTURE FLOOD DISASTERS

The bill (S. 2032) to authorize a study of methods of helping to provide financial assistance to victims of future flood disasters was considered, ordered to be engrossed for a third reading, read the third time, and passed, as follows:

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Housing and Home Finance Administrator shall undertake an immediate study of alternative programs which could be established to help provide financial assistance to those suffering property losses in flood disasters, including alternative methods of Federal flood insurance, as well as the existing flood insurance program, and shall report his findings and recommendations to the President for submission to the Congress not later than nine months after the enactment of this Act or the appropriation of funds for this study, whichever is later. The report shall include, among other things, an indication of the feasibility of each program studied, an estimate of its cost to the Federal Government and to property owners on the basis of reasonable assumptions, and the legal authority for State financial participation. With respect to each method of flood insurance considered, the report shall include an indication of the schedule of estimated rates adequate to pay all claims for probable losses over a reasonable period of years, the feasibility of Federal flood plain zoning for the purpose of selecting areas which may be excluded from insurance coverage, and the feasibility of initiating a flood insurance program on an experimental basis in designated pilot areas. There is hereby authorized to be appropriated such sums as are necessary to carry out the purposes of this Act.

Mr. MANSFIELD. Mr. President, I ask unanimous consent to have printed

BACKGROUND OF THE BILL

S. 2032 was introduced on August 8, 1963. Favorable reports were received from the Housing and Home Finance Agency on August 23, the Bureau of the Budget on September 5, and the Small Business Administration on September 13. Copies of these letters are printed below as part of this report.

S. 2032, 88th Congress, is identical with S. 3066, 87th Congress, 2d session, as reported by this committee. S. 3066 was passed by the Senate on July 25, 1962, but it did not become law.

PREVIOUS LEGISLATION

Floods and other disasters have called for Federal action for many generations. Sometimes this action has taken the form of preventive public works along the coasts and rivers of the United States, sometimes it has taken the form of relief to the victims of these disasters.

Following the disastrous floods of 1955 and 1956, the Senate Banking and Currency Committee made a thorough study of the problem of floods and other disasters and of Federal assistance to the victims of such disasters. Extensive hearings were held by the committee in those years, both in the District of Columbia and in many of the affected areas. In addition, the committee issued a staff study on the subject of Federal disaster insurance (S. Rept. 1313, 84th Cong.). This study contained an extensive collection of information on the subject of floods and other disasters and the damages resulting therefrom. It also contained a survey of the relief provided by the Federal Government and by State, local, and private organizations to the victims of disasters. Following the committee's investigation of the matter, a bill was reported out by the committee (S. Rept. 1864, 84th Cong.), which became the Federal Flood Insurance Act of 1956 (Public Law 1016, 84th Cong.).

This act provided for the establishment of three programs-a Federal flood insurance program, a Federal flood reinsurance program, and a Federal loan contract program covering flood losses. Upon the enactment of this act, the Federal Flood Indemnity

Administration was created as a constituent unit of the Housing and Home Finance Agency. Extensive discussions were held with other Federal agencies, with State and local governments, and with the insurance industry. However, no satisfactory program was developed, and following the refusal of the Congress to grant appropriations to provide funds for the flood indemnity program, the Federal Flood Indemnity Administration was abolished and a final report on its activities was transmitted to the Congress by the President on July 28, 1958 (H. Doc. 426, 85th Cong.). A copy of this report was printed as a part of the committee's hearings on S. 3066, 87th Congress.

THE PROPOSED STUDY

S. 2032 would authorize and require― "An immediate study of alternative programs which could be established to help provide financial assistance to those suffer

ing property losses in flood disasters, including alternative methods of Federal flood insurance, as well as the existing flood insurance program."

The bill provides that the report to be filed must include

"An indication of the feasibility of each program studied, an estimate of its cost to the Federal Government and to property owners on the basis of reasonable assumptions, and the legal authority for State financial participation."

In addition, the bill requires the report to include, with respect to each method of flood insurance considered

"An indication of the schedule of estimated. rates adequate to pay all claims for probable losses over a reasonable period of years, the feasibility of Federal flood plain zoning for the purpose of selecting areas which may be excluded from insurance coverage, and the feasibility of initiating a flood insurance program on an experimental basis in designated pilot areas.”

The Housing and Home Finance Administrator testified at the hearing on S. 3066 in 1962 that the agency had consulted with the Corps of Engineers, the Geological Survey, the Weather Bureau, the Department of Agriculture, and the Bureau of the Budget as to the type of study which might be understood under the resolution. These agencies concluded that it would be desirable to make a detailed study of seven or eight selected areas for which hydrological data and contour maps are available.

The Administrator testified that— "The areas selected would provide appropriate geographical representation and include coastal as well as inland flood plain areas and would vary in size and include residential, industrial, and commercial developments. The hydrological data relating to these areas could then be studied to develop estimates of the probability of occurrence of floods. These could be delineated on contour maps so as to indicate the sections of the areas which would be inundated by floods In of various probabilities of occurrence. addition, a study could be made of the value of the properties subject to flooding, the estimated damages to these properties when floods do occur, and the estimated average annual damage. With this information estimated insurance premium rates could be developed which would be necessary to cover the average annual loss in these particular areas and a determination would be made as to whether it would be feasible to initiate a flood insurance program on an experimental basis.

"If this study is authorized we would work in close cooperation with the appropriate Federal departments and agencies, particu

larly the Corps of Engineers, the Geological Survey, the Weather Bureau, and TVA, which have accumulated a wealth of data and

knowledge pertaining to floods and flood plains, and the Department of Agriculture, which administers the Federal crop insurance program through the Federal Crop Insurance Corporation. The Corps of Engineers would conduct the studies in the pilot areas and an analysis of these studies would be carried on in cooperation with the corps, the Geological Survey, and the Weather Bureau. Both the TVA and the Corps of Engineers have developed programs of assistance and information in the field of flood plain zoning. We would look to these agencies for

advice on problems that relate to zoning. We would also consult with the Council of State Governments, which, for many years, has expressed keen interest in flood plain zoning and flood insurance. Representatives of the insurance industry who we understand were most cooperative in the planning of the flood indemnity program under the Federal Flood Insurance Act of 1956 would be consulted with reference to the studies on the feasibility of flood insurance programs."

On May 31, 1962, the President issued a statement expressing his support for the bill and indicating that a supplemental request for appropriations of approximately one-half million dollars to finance the study would be submitted at the appropriate time.

Since S. 2032 only authorizes appropriations, the committee expected that any appropriate further details with respect to the proposed study, and a detailed justification of every aspect of it, would be presented to the Appropriations Committees.

"[S. 2032, 88th Cong., 1st sess.] "A bill to authorize a study of methods of helping to provide financial assistance to victims of future flood disasters

"Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Housing and Home Finance Administrator shall undertake an immediate study of alternative programs which could be established to help provide financial assistance to those suffering property losses in flood disasters, including alternative methods of Federal flood insurance, as well as the existing flood insurance program, and shall report his findings and recommendations to the President for submission to the Congress not later than nine months after the enactment of

this Act or the appropriation of funds for this study, whichever is later. The report shall include, among other things, an indication of the feasibility of each program studied, an estimate of its cost to the Federal Government and to property owners on the basis of reasonable assumptions, and the legal authority for State financial participation. With respect to each method of flood insurance considered, the report shall include an indication of the schedule of estimated rates adequate to pay all claims for probable losses over a reasonable period of years, the feasibility of Federal flood plain zoning for the purpose of selecting areas which may be excluded from insurance coverage, and the feasibility of initiating a flood insurance program on an experimental basis in designated pilot areas. There is hereby authorized to be appropriated such sums as are necessary to carry out the purposes of this Act."

STUDY OF NATIONAL SYSTEM OF

SCENIC HIGHWAYS

The Senate proceeded to consider the resolution (S. Res. 217) to authorize a study of a national system of scenic highways which had been reported from the Committee on Public Works with amendments, on page 2, line 19, after "January 31,", to strike out "1965" and insert "1964"; on page 3, at the beginning of line 1, to strike out "consultants;" and insert "consultants: Provided, That the minority is authorized to select one person for appointment, and the person selected shall be appointed and his compensation shall be so fixed that his gross rate shall not be less by more than $1,600 than the highest gross rate paid to any other employee;" in line 15, after the word "date", to strike out

the comma and "but not later than January 31, 1965", and in line 17, after the word "exceed", to strike out "$50,000" and insert "$20,000"; so as to make the resolution read:

S. RES. 217

[Rept. No. 635] Resolved, That the Committee on Public Works, or any duly authorized subcommittee thereof, is authorized under sections 134 (a) and 136 of the Legislative Reorganization Act of 1946, as amended, and in accordance with its jurisdiction specified by rule XXV of the Standing Rules of the Senate, to make a detailed study and investigation concerning the role that the development and establishment of a national system of scenic highways could play in the Nation's recreation program. Such study and investigation shall include, but not be limited to: (1) an analysis of the functions of such a system, (2) the design criteria to be utilized, (3) the methods of financing the necessary construction, (4) the status of existing State plans for scenic highway systems, (5) the nature and extent of Federal, State, and local participation and responsibility, and (6) recommendations for Federal, State, and local action.

SEC. 2. For the purposes of this resolution the committee, from the date on which this resolution is agreed to through January 31, 1964, is authorized (1) to make such expenditures as it deems advisable; (2) to employ upon a temporary basis technical, clerical, and other assistants and consultants: Provided, That the minority is authorized to select one person for appointment, and the person selected shall be appointed and his compensation shall be so fixed that his gross rate shall not be less by more than $1,600 than the highest gross rate paid to any other employee; and (3) with the prior consent of the heads of the departments or agencies concerned, and the Committee on Rules and Administration, to utilize the reimbursable services, information, facilities, and personnel of any of the departments or agencies of the Government.

SEC. 3. The committee shall report its findings upon the study and investigation authorized by this resolution together with its recommendations for such legislation as it deems advisable to the Senate at the earliest practicable date.

SEC. 4. The expenses of the committee under this resolution which shall not exceed $20,000 shall be paid from the contingent fund of the Senate upon vouchers approved by the chairman of the committee.

The amendments were agreed to. The resolution, as amended, was agreed to.

The preamble was amended, so as to read:

Whereas an adequate recreational program is essential to the well-being of our citizens;

Whereas the recreational needs of the Nation are growing at an ever-increasing rate;

and

Whereas these needs are intensified because the recreational facilities available to our citizens are limited; and

Whereas the Congress has shown its recognition of these needs by providing within the limited areas which remain for the development of national parks and national seashore; and

Whereas there are miles of shoreline along the Atlantic, Pacific and Arctic Oceans, the of forest, park, river and valley, and moungulf coast, and the Great Lakes, and miles tain scenery which provide an excellent potential for scenic highway recreational use; and

Whereas the Outdoor Recreation Resources

Review Commission has indicated that sightseeing by automobile is the Nation's number

one outdoor recreational activity: Therefore be it

Mr. MANSFIELD. Mr. President, I ask unanimous consent to have printed in the RECORD an excerpt from the report (No. 635) explaining the purposes of the resolution.

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

The proposed resolution would authorize a Public Works Committee study of the potentialities and feasibility of a national scenic roads system with consideration of design criteria, alternative methods of funding, the extent of local and State participation, the level of present State planning, as well as other aspects.

The Interstate System is showing good progress toward resolving the transportation problems between our major population centers. But with the continuation of the long-term population trend to the large metropolitan areas there is a growing need to provide access of urban dwellers to scenic and outdoor recreation areas.

The Outdoor Recreation Resources Review Commission recently reported that the most popular form of recreation (20.7 percent) is driving. Thus the drive through the countryside is the first priority for those who seek outdoor recreation.

However, less sedentary pursuits have in recent years shown a marked increase. While population increased 19 percent from 1952 to 1962, recreation visits to the national forests during the same period increased 240 percent, from 33 million in 1952 to 113 million in 1962. Thus, there is an evident and growing need for a scenic and recreational highway program linked to the Interstate System. The proposed study would explore the means of meeting this need and of coordinating existing and proposed scenic and recreation highways.

There are at present some 28,000 miles of forest highways administered by the States which, though providing an extensive network, do not constitute a system. In addition, there are more than 186,000 miles of forest development roads which are principally designed and built to serve timber hauling, but which, under the Multiple-Use Act of 1960, are to be administered by the Forest Service for recreational uses as well.

Also under the administration of the Forest Service are three preliminary reconnaisance studies and cost estimates for scenic and recreation roads in national forests: 160 miles in the Monongahela National Forest in West Virginia, 48 miles in the Nantahala National Forest in North Carolina, and 55 miles in the Ouachita National Forest of Arkansas and Oklahoma. Other projects on public lands include 45 miles in the Carson National Forest in New Mexico, bridge and section of highway crossing the Colorado River at Hite, Utah, and roads on Federal lands in Georgia, Montana, and Arizona.

In addition, the National Park Service administers 7,000 miles of roads in 26 millions acres of federally owned lands, which received a total visitation in 1961 of 80 million.

Finally, the study would consider means of facilitating the development and incorporation of the proposed Great River Road in a national system of scenic highways. To study and evaluate all of the aforementioned, as well as such State scenic road programs as that of California, with a view toward developing a national system would be the purpose of the proposed inquiry.

COMMITTEE VIEWS

It is the view of the committee that the study as proposed by this resolution would be extremely valuable in providing the Congress with the necessary facts to determine whether there shall be a nationwide program of coordinated, as opposed to piecemeal development of scenic roads designed to serve the needs of the millions of Americans who desire outdoor recreation and the opportunity to appreciate the beauty of America's natural resources.

The committee therefore recommends the approval of this resolution.

USE OF CERTAIN PROPERTY AT MUSCATINE, IOWA, FOR PUBLIC

PARK

The bill (H.R. 5244) to modify the project on the Mississippi River at Muscatine, Iowa, to permit the use of certain property for public park purposes was considered, ordered to a third reading, read the third time, and passed.

Mr. MANSFIELD. Mr. President, I ask unanimous consent to have printed in the RECORD an excerpt from the report (No. 636) explaining the purposes of the bill.

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

PURPOSE OF THE BILL

The purpose of H.R. 5244 is to modify the project for a small-boat harbor and public landing area on the Mississippi River at Muscatine, Iowa, authorized by the River and Harbor Act approved May 17, 1950 (64 Stat. 166), to permit the use of certain property for public park and recreation purposes.

GENERAL STATEMENT

Muscatine Harbor is located on the Mississippi River along the waterfront of the city of Muscatine, Iowa, about 465 miles above the mouth of the Ohio River. The project consists of a small-boat harbor, with a minimum depth of 5 feet, protected by a rockfill breakwater, and an approach area with a depth of 9 feet to a public landing site for freight, commerce, and industrial development. The dredge spoil from the approach area was deposited to create the site for the public landing and an industrial

area.

The project was authorized by the River and Harbor Act of 1950, in accordance with the plan of improvement recommended by the Chief of Engineers in House Document No. 733, 80th Congress. One of the requirements of local cooperation was that upon completion of the fill for the industrial site, local interests would provide adequate public terminal and transfer facilities and access roads, open to all on equal terms, and a grain elevator.

Construction of the project was completed in May 1961, at a Federal cost of $300,680. The commerce envisioned by local interests which would utilize the proposed commercial landing facilities at the completed project has not developed. Local officials at Muscatine desire to use an area of about 10 acres of this land, which is owned by the city, for public park and recreational purposes, in conjunction with the adjacent city park. H.R. 5244 would permit such use, and would further require that local interests provide and maintain at local expense adequate public terminal and transfer facilities open to all on equal terms.

The Department of the Army, as well as local interests, consider that under the circumstances which exist at Muscatine the conditions of local cooperation have been fulfilled to the extent presently possible.

FEDERAL RESERVE SYSTEM

The legislative clerk read the nomination of J. Dewey Daane, of Virginia, to be a member of the Board of Governors of the Federal Reserve System.

Mr. PROXMIRE. Mr. President, Mr. Daane appeared before the Banking and Currency Committee yesterday and made an excellent impression. His nomination was unanimously supported by all members of the committee. He is one of the best qualified men ever appointed to the Federal Reserve Board.

I also want to say that his attitude on monetary policies are in conflict with mine, and I believe at least partly with those of the distinguished senior Senator from Illinois [Mr. DOUGLAS].

I make the point because in the future there may be equally qualified men whose attitude may conflict with those of other members of the committee. I hope other I hope other members of the committee and of the Senate who may disagree on some aspects of policy will recognize the President's right to appoint qualified men who may have divergent views on monetary policy to the Federal Reserve Board. I hope that other members of the Banking Committee will vote to approve qualified Presidential appointees to the Federal Reserve Board in the future, aleral Reserve Board in the future, although those appointees may agree with Senator DOUGLAS and me, and disagree with them.

I hope this nomination will be confirmed.

The PRESIDING OFFICER. The question is, Will the Senate advise and consent to this nomination? Without objection, the nomination is confirmed.

Mr. MANSFIELD. Mr. President, I ask that the President be notified immediately of the confirmation of the nomination.

The PRESIDING OFFICER. Without objection, the President will be notified forthwith.

LEGISLATIVE SESSION

Mr. MANSFIELD. Mr. President, I move that the Senate resume the consideration of legislative business.

The motion was agreed to; and the Senate resumed the consideration of legislative business.

Mr. MANSFIELD. I thank the Senator from Colorado [Mr. DOMINICK] for his courtesy.

Mr. DOMINICK. Mr. PresidentMr. GRUENING. Mr. President, is the Senate still in the morning hour? The PRESIDING OFFICER. The Senator from Colorado is recognized.

FOREIGN AID AND FOREIGN POLICY Mr. DOMINICK. Mr. President, we have been talking about the foreign aid bill for a few weeks, and I presume the debate will continue for some time. What the bill involves, basically, is whether or not the foreign policies which have been in effect for a number of years have been successful. I have made a

number of speeches, not only on the situation in Cuba, but also on other relationships of foreign policy since President Kennedy was inaugurated, and have declared that his foreign policy has been a dismal failure. I still think it has been a dismal failure, and that it will continue to be so long as the present policies are pursued.

The other day I was very much interested to hear an impassioned speech by the distinguished Senator from Minnesota [Mr. HUMPHREY] on the Alliance for Progress, and what a great undertaking the Alliance for Progress is.

I have before me a publication entitled "Pan American Headlines," for September-October 1963, which lists four principal planks of the Kennedy program in Latin America. In 22 years all four of these Kennedy-accepted policies have either failed or shown their stark unworkability. workability. One of these happens to be the Alliance for Progress.

Yesterday I was extremely interested to read an interesting article published in the Wall Street Journal entitled "Bleeding in Brazil," written by a highly qualified reporter, Henry Gemmill. The article deals with the problems which U.S. private enterprise and the AID program are having in Brazil. The article is so pertinent that I believe I should read an excerpt from it, and then ask that the entire article be printed in the RECORD at the conclusion of my remarks.

Mr. Gemmill writes:

The Brazilian Government, delinquent on around $100 million of crude oil import bills piled up over the past year, is demanding international oil companies wrap the debt in a pay-later package and stick it in a dark closet. Simultaneously, the Government is insisting the same companies' distributing subsidiaries inside Brazil pay pronto a tax far exceeding their resources. Any company resisting

either demand faces the threat of being tossed out of the Brazilian oil business.

This is only in connection with the program so far as the Alliance for Progress is concerned.

I ask unanimous consent that the article, published in the Pan American Headlines, and the one to which I have just referred, published in the Wall Street Journal, be printed in the RECORD at the conclusion of my remarks.

The PRESIDING OFFICER. Without objection, it is so ordered.

(See exhibit 1.)

Mr. DOMINICK. In addition, we have seen a complete disarray amongst our NATO allies in connection with our foreign policy. I have before me, under date of October 21, a letter forwarded from Toronto, Ontario, enclosing a copy of an editorial from the Financial Post, which is referred to as "Canada's national weekly of business, investment, and public affairs." The article, published in the October 19 issue of the Financial Post, is entitled "Kennedy to Meany to Hall to Banks." The subhead reads "Alliance, Yes; Holy, No."

This is a really biting article, criticizing this administration in connection with its activities in Canadian labor affairs and labor disputes on the Great Lakes. It shows once more how we are interfering with our own free world allies in an effort, apparently, to satisfy local political pressures in the United States, in an area where we have no right whatever, and in which we are doing nothing at all to guarantee any friendship or cooperation from the Canadians as a whole.

I ask unanimous consent that the article from the Financial Post may also be printed in the RECORD at the conclusion of my remarks.

The PRESIDING OFFICER. Without objection, it is so ordered.

(See exhibit 2.)

EXHIBIT 1

2. To rid the hemisphere of all remaining dictators or military governments and to replace them by democracies on the U.S. model.

3. To bulwark these democracies by a wideranging program of economic development, principally financed by Washington, and preprincipally financed by Washington, and pretentiously named, Alliance for Progress.

4. To use Socialists and crypto-Communists as our shock troops against commu

nism in the Americas and to back these leftists, when they came to power, with full U.S. support.

In 221⁄2 years, all four of these Kennedyaccepted policies have either failed or shown their stark unworkability.

1. The Cuba liberation which, under 1961 conditions, should have been a quick cleanup job foundered 4 months after Inauguration Day, at the Bay of Pigs, as a result of the President's own irresolution. When, 18 months later, Mr. Kennedy had a second chance, in the October 22, 1962, confrontation, he flunked the test again. Today, Castro's rule in Cuba stands at its strongest peak.

2. The "end dictatorship" project has also Washington-encouraged fall of Trujillo in come to an unhappy dead end. After the the Dominican Republic, only three dictatorships or military governments remained in the hemisphere-Paraguay, Haiti and Nicaragua. Today, their number has increased to six. New accessions-Guatemala, Ecuador, and now the Dominican Republic. from the Berle-Muñoz-Marín point of view. The situation is even more disheartening Two other powerful nations-Peru and Argentina-have also found it necessary during the Kennedy period to suspend democracy by action of the military in order to forestall the Communists. Both have subsequently restored democratic rule.

The curve of democracy in Latin America has turned steadily downward since 1963. And yet, President Kennedy promised on September 12, 1960, that if elected he would end all dictators in this hemisphere in 3 years.

3. The Alliance for Progress, which was unwrapped at the White House with such fanfare on March 14, 1961, has proved pretty much of a dud. With few exceptions, the Latin American countries, while they still avidly accept the American handouts, are

October 1963]

KENNEDY POLICIES TOTTERING IN LATIN AMERICA-LEFT-LIBERAL PROGRAM ANNOUNCED IN 1961 Now SEEN TO BE UNWORKABLE

The crashing fall of Juan Bosch in the Dominician Republic was more than a passing political incident. It rang down the curtain upon the whole unworkable Kennedy

plan for Latin America.

Bosch's rule in the Dominican Republic was a keystone of this plan. As Tad Szulc pointed out in the New York Times (September 8), the Bosch regime "has the anxious blessings of the Kennedy administration." Bosch's election last December was greeted by the whole rout of administration leftists as the signal of the success of the left-liberal program for Latin America. This is the program which was sold to President Kennedy in December 1960, before his inauguration, by Adolf A. Berle, Luis Muñoz-Marín, and Arthur M. Schlesinger, Jr. The signal has now proved to be delusive. One by one, the Berle-Muñoz-Marín proposals have shattered upon the rock of actuality. Bosch's fall is likely to be the final melancholy chapter.

The ambitious plan which Berle submitted to the President shortly after Inauguration Day, as head of the President's Latin American task force, embraced four main objectives. These were:

professional staff members, like Mr. Moscoso, still sing its praises.

This jaundiced view also seems to prevail in our own Congress which has just sliced $150 million off the Kennedy-requested Alliance for Progress appropriations for 1964.

Although the President has now committed $2,180 million of American taxpayers' money to the Alliance, he himself admitted sadly in August that "we have a long, long way to go, and in fact, in some ways the road seems longer than it was when we started."

4. But dearest to the liberal heart was the "we must support the Socialists" proposal. The liberal advisers who sold Mr. Kennedy this preposterous idea contemplated a chain belt of Socialist and crypto-Communist ruled nations dominating the Caribbean and bisecting South America. The pivot man in this plan was to be Romulo Betancourt, President of Venezuela, whom Mr. Kennedy foolishly hailed in 1962 as "the kind of President the United States wants in South America." With Betancourt's Venezuela as a sort of hub, the liberals envisaged a stretch of leftist countries including Costa Rica, Bolivia, Ecuador and eventually Chile. They would be a powerful, cohesive bloc in the OAS and it was assumed (a farfetched assumption) that they would back the United States more dependably than would the conservative-ruled countries.

Communist Haya de la Torre in Peru, and

next the deposition of leftist President Arosemena in Ecuador-wrecked the South American plans of the Betancourt coterie. However, Juan Bosch's triumph in the Dominican Republic gave them an unexpected reach into the Caribbean. Last summer, Betancourt even contemplated a barefaced conquest of Haiti, to add to his satellite domain. Upon this power plan, the fall of Bosch drops like a knell. The dream of a third force of crypto-Communist countries holding the balance of power in the Americas is now shattered. The American liberals who glowingly supported this idea, are now confounded by the remorseless logic of events.

With this elaborate program of change lying about him in ruins, after only two and a half years, Mr. Kennedy faces some hardnose decisions. Will he continue to press his program now that Latin Americans have so plainly demonstrated that they don't want it? Can he untangle himself from the doctrinaire liberal advisers who are pressuring him to go further with these unworkable experiments? Mr. Kennedy must soon come up with the answers.

[From the Wall Street Journal, Nov. 5, 1963] BLEEDING IN BRAZIL: LATIN GIANT BEMOANS

EXPLOITATION BUT PUTS SQUEEZE ON U.S. FIRMS-LAND DELAYS $100 MILLION OIL IMPORT PAYMENT BUT INSISTS FIRMS PAY BIG TAX PRONTO-AID DILEMMA FOR WASHINGΤΟΝ

(By Henry Gemmill) RIO DE JANEIRO.-Who is draining the lifeblood out of whom here?

Foreign trusts-U.S. exploiters worst of all-are bleeding this country, answer many Brazilians. But to many Americans, it looks as if Brazil is bleeding the companies, and the U.S. Government, too.

The Brazilian opinion is widespread. "The

country cannot bear the heavy onus on its development entailed by enrichment of privileged groups who unduly appropriate the fruits of Brazilians' labor," says a memo splashed on the front pages of Rio news

papers and signed by President Goulart. Other politicians agree that Brazil is despoiled by Yankee investors, traders, and even foreign aiders. Communists say the

same thing, and so do nationalist tycoons.

Yet Americans in rebuttal can cite these facts:

The Brazilian Government, delinquent on around $100 million of crude oil import bills piled up over the past year, is demanding international oil companies wrap the debt in a pay-later package and stick it in a dark closet. Simultaneously the Government is

insisting the same companies' distributing

subsidiaries inside Brazil pay pronto a tax far exceeding their resources. Any company resisting either demand faces the threat of being tossed out of the Brazilian oil business.

FOREIGN AID FRUSTRATION

U.S. foreign aiders have been doublecrossed on some Brazilian Government commitments. Sample: Trying to use for good works the local currency from huge gift "sales" of wheat to Brazil, they've had as much as 22 billion cruzeiros blocked in the Development Bank-while a blast of inflation melts the value of this money as if it were butter in an oven. So far the Government bank has let them finance exactly one project, helping a private concern produce synthetic rubber.

Brazil, having gained a host of modern factories by Government lures to foreign corporations during the 1950's, enacted in 1962 a law limiting annual profit remittances abroad to 10 percent of investment. Fair enough in theory, perhaps, and seemingly of little significance since United States and European owners have plowed most earnings back into their businesses.

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