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But in practice, Government paper boost is no "windfall” but a belated catchup A General Motors or a General Electric shufflers have never gotten around to han- with inflation, which now has Brazilian labor is physically anchored to Brazil by its plants. dling the required registrations. For more demanding 100-percent wage boosts.

Fi- An American exporter may not be, but if he than a year, remittances-not just profits nally, after years of omitted dividends, they has a valuable traditional share in the Brabut interest on loans and even patent license say they don't have the money and can't zilian market for chemicals or curtain rods payments—have been held near zero. This find a banker who will lend it. Having paid balance against a batch of unpaid bills, he tourniquet has cut off a normal outward similar cash levies in the past the companies can't escape the problem of whether and flow of roughly $100 million annually. don't say they are unwilling to pay, but con- when to take his licking and cut his losses. tend they're unable.

Even with coffee export prices riding high, U.S. POLICY DILEMMA

The companies say some high Government one economist says Brazil is like the fellow American policymakers, whether they sit

officials understand the facts and express who overspends and keeps out of bankin Washington offices or corporate board sympathy, but they have received no assur- ruptcy by running around paying the mortrooms, thus face a dilemma. Should they

ances they are being believed. In fact, Gov- gage, but stalling the butcher, and fending refuse to be bled any longer, and flatly de

ernment regulators, perhaps figuring parent off repossession of his new car by borrowing cline to throw good money after bad? Or

companies can be pressured into bringing an installment payment from a neighbor. should they figure they're so badly hooked

down fresh dollars to ransom these Brazilian The trouble with this comparison is that by already that, to protect their investment,

subsidiaries, or perhaps with a more political 1964 Brazil's balance-of-payments gap is they must play along-calculating that

purpose, make this threat: Any company probably going to reach $800 million. So a Brazil's current course reflects neither the failing to fork over will lose its marketing horde of creditors will find themselves not true interests nor the popular will of this

quota. No quota means the company is out just in the same boat but in the same ocean great nation, hoping things will change for of business.

liner. the better, and fearful of touching off a


The Kennedy administration will be in it change for the worse? They find it a tough

The crude oil Brazil imports from Vene

with them. It, too, has a heavy commitment decision. To appreciate how tough, look more closely producing or trading affiliates of the same zuela and the Mideast is supplied mainly by

through the Alliance for Progress plan for

uplifting the hemisphere with u.s. aid and at oil. It's Brazil's biggest import necessity. four companies. In buying from them the

Latin self-help. Brazil is crucial to the projTo ultranationalists here, it symbolizes the Government, which is so insistent a col

ect. So Washington policymakers grant nation's struggle with giant foreign “trusts." lector inside Brazil, becomes an elusive

some aid, hold back on some, strive to get To the companies concerned, that struggle debtor.

what they give to more useful destinations displays the slashing skill of some of the

The chief purchaser is Petrobras. Though

such as Brazilian state governments, and Brazilian Government's most powerful and Petrobras demands payment in 30 days when

wonder whether and when more drastic deciradical institutions. selling, it does not consider a bill due until

sions must be made. These Government arms include:

4 months have passed when it's buying. Petrobras. This Government oil company

Then it does pay. monopolizes domestic exploration and proThere's one hitch, though.

EXHIBIT 2 duction, but fills only a third of the nation's

Payment is

made by giving cruzeiros to Banco do Brasil [From the Financial Post, Oct. 19, 1963] crude oil needs. It does the bulk of all

which is supposed then to transmit dollars. refining. Under Mr. Goulart, executives

KENNEDY TO MEANY TO HALL TO BANKS The bank has been pocketing the cruzeiros who knew petroleum have vanished; the and blandly telling oil suppliers it has no

President Kennedy wants to be reelected outfit is headed by a political general and dollars.

next year but Canadians don't like being a run by leftists in key posts. Its costs are

Now, oil companies are confronted not

punching bag in his political warmup. swollen by inefficiency, payroll padding and merely with the prospect of carrying $100

The American Government is busily enapparently the financing of such unrelated million of unpaid bills on the cuff, but with

gaged in trying to run the affairs of dozens things as youth movements. The Reds

of countries around the world. It wears the a Government request that this embarrasswould like to switch crude imports over to ing commercial delinquency be made to

robes and halo of sanctity. It is on the side the Soviet, already a secondary supplier. vanish for a while by sticking a not-due-till

of progress or democracy or freedom or someCOUNCIL AND BANK later label on it and tossing it into storage.

thing that sounds good. Conselho National de Petroleo. It rules The companies have entered negotiations.

Certainly no responsible member of the

Western alliance will envy the most powerover the private sector of the oil industry, Any oil executive tempted to stalk out must consider whether he's really ready to give up

ful nation on earth its responsibilities or deny regulating retail prices and myriad other matters. This council too is infiltrated by this market, occuping half a continent.

its generosity or seriously criticize what the

Americans stand for in the cold war. Reds who would like to stamp out capital


But more and more the habit of pushing ism at the filling-station level.

These oil troubles illustrate the sort of other people around is growing on the KenBanco do Brasil. This bank is part of the

battering most businesses experience if they nedys and their clansmen in Washington. government financial apparatus which con

have dealings with Brazil. Variations are This is frequently and amply demonstrated stantly claims to fight inflation while flood

innumerable. But inside Brazil the officers within the United States. Indeed, terrifying the country with paper money to cover

of many a U.S.-owned factory say they have ing American citizens into behavior pleasing fantastic budget deficits. It also constantly

had a "helluva" time with bosses back home, to the Kennedys is currently the political claims to be bringing foreign payments into

and by now the wrangling frequently evolves sport of the President's brother, the Attorney balance, while rigging exchange rates to sub

around whether more dollars should be General, sidize imports and stifle exports.

brought down. Here's the outline one sub- Quite a few people and corporations who As for the foreign companies, they play a

sidiary officer gives of a typical conversation do not please the Kennedys are now finding double role. First, there are the Brazilian

with his superior in the United States: that their current and past income tax resubsidiaries of Standard Oil Co. of New Jer

“Why should we send more money in turns are being reviewed. sey, Texaco, Inc., Atlantic Refining Co., and

when you fellows can't send profits out?" And who is there who won't be intimidated Shell Oil Co. (Gulf Oil Corp. got out). They

"Well, this inflation has doubled the work- by that, even if their income reports are all buy gasoline and other refined products,

ing capital we need, and we can only borrow clean as a whistle? This Attorney General mainly from Petrobras. They pay the Gov

here at more than 40 percent interest, if we ernment within a required 30 days, and then

discipline is so intimidating, in fact, that can get it at all."

U.S. news media don't write about it. manage to distribute to the remotest village

"You're giving everything away to your

Now, with their bullying strategy perunder tight price ceilings fixed by the Petro

Commie union. And even that 70 percent fected at home, the Kennedys and their coleum Council. But now, suddenly, they're

boost 4 months ago isn't keeping them from horts are using it to get what they want not obeying another Government edict.

abroad. screaming for more.” The council, which has just permitted a price rise of about 30 percent, demands the

"I know, but my guys here are OK, and Take the latest example of outrageous incompanies give Banco do Brasil a sum equal

you should try to understand that the way terference—the American pressure against to their “windfall” profit on inventories. In

things are going they really do need more the Canadian Government over the labor effect, the companies, which have already

money. Anyhow, we have to give it or be union war on the Great Lakes.
shut down."

Belatedly, paid the Government once for enormous

the Canadian Government stocks, are told they must pay for about a

How's that nationalization bill stand in stepped into this mess and the trustee third of these all over again. The cash congress?"

scheme is about to be implemented. they're asked to hand over comes to roughly Still talking about it, but it looks like But the spectacle of the White House and 12 billion cruzeiros—more than $10 million

we'll squeak by with just price ceilings." the U.S. Secretary of Labor and the whole and probably close to $20 million, depending “You call this a case for investing stock- weighty machinery of the U.S. Government on which of the variously rigged Brazilian holders' money?"

being gassed up to tell the Canadian Governexchange rates is used to translate the cru- “This is still a great country with a chance

ment what it can and cannot do about a zeiro figure.

for a great future, and anybody who chick- Canadian problem is, to say the least, unThe distributing companies plead that the ens out now may be making a great mistake.

pleasant. level of their stocks has been dictated by a But give the word and I'll have a padlock

ALLIANCE, YES; HOLY, NO council which will not permit sensible inven- on the gate tomorrow."

Here is the cast of characters and here is tory trimming, and that a 30-percent price “Not so fast."

the play.

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Kennedy needs the labor union vote in his

I ask unanimous consent, Mr. Pres- In resisting Communist harassment presidential contest next year. That means ident, that the story be printed in the and subversion while pursuing the paths he needs the unqualified support of George RECORD.

of peace, we will be paying the finest Meany, the powerful head of the AFL-CIO.

There being no objection, the article tribute possible to our veterans. Meany is shaky in his lucrative job. Quite

Thus, on November 11, as we visit the a few big union leaders are gunning for him, was ordered to be printed in the RECORD, notably Walter Reuther of the Auto Workers. as follows:

graves of our heroic veterans and salute To protect his hide, Meany needs all the MORSE AMENDS ATTACK ON STORE INTEREST those who fought in the forces of freefriends he can keep and so he will do any


dom, let us also reafirm our dedication thing to please Paul Hall, the very powerful

Senator WAYNE MORSE, Democrat, of Ore

to the task at hand. We are challenged international boss of the Seafarers Union,

by necessity and by deep conviction to Paul Hall, in turn, very much needs the gon, has corrected his charge that an un

named Washington department store col- work tirelessly for a world order in which support of Hal Banks—and the money Banks

lects 6 percent interest a month on unpaid there will be no wars or threat of wars. gets out of his Canadian union members.

accounts. So when the U.S. Secretary of Labor

Veterans Day, then, is a day in which

The figure, MORSE told his colleagues, was solemnly makes an official pilgrimage to

we remember with pride the courage, only 3 percent-or 36 percent a year. He Ottawa (nobody can recall that happensaid the mistake arose when he misunder

devotion, and sacrifice of those who have ing before) and when he makes public decstood his wife's complaints about a charge

served our country in time of war. It larations telling the Canadian Government account she had just canceled.

is a day for us to be glad we are Ameriwhat to do, he is merely doing a chore for

As other Senators were talking about cans and to proclaim our belief in the Kennedy who wants to do a favor for George

Gangster Joseph Valachi's loan-sharking ac- principles which have guided our Nation. Meany, who needs Hall, who needs the

tivities in Cosa Nostra, Senator PAUL H. notorious Hal Banks.

It is a day, too, when we reaffirm our DOUGLAS, Democrat, of Illinois, put in a plug From Mr. Kennedy's point of view, Can

determination to continue the struggle for his own “truth in lending” bill. ada is quite unimportant. It would, in most

MORSE then told of his wife's experience

to bring lasting peace to the world. respects, be a lot simpler for the White

The next day House and the U.S. Government if we didn't with 6-percent interest rates.

he corrected the figure to 3 percent, and exist at all as a separate country. It is tragic that a man of such great en

added that many stores had taken to charg- INVESTMENT FOR THE FUTURE dowments as Kennedy should, with increas ing only 112 percent on the unpaid balance.

A check of Washington department stores

Mr. BARTLETT. Mr. President, what ing frequency, be revealed as having a

I consider to be a significant address was serious defect of character. His intellect yesterday turned up none that charged as

much as 3 percent. Most charged 112, and and conscience too often fail him in assess

made on November 5 at Portland, Oreg., ment of the appropriate and seemly exercise

one charged a 3-percent service charge at before the Inland Empire Waterways As

the time of purchase—but no interest thereof power.

sociation by the Honorable Elmer B. after. The proverb, “The end justifies the

Staats, Deputy Director of the Bureau of means" with the Kennedy clan too often


Budget. Mr. Staats' thoughtful becomes “The end justifies any means.”


words deserve the consideration of all Hal Banks and John F. Kennedy will understand each other completely. As "suc

Mr. SALTONSTALL. Mr. President,

Americans and I ask unanimous consent cessful” men, they have good reason to ad- throughout the history of our Nation,

that the text of his speech be printed folmire each other.

each generation has been compelled to lowing my remarks. Both Banks and Kennedy are good at bear witness to its dedication to the I am particularly glad that Mr. Staats kicking people around. Canadians

ideals of freedom and peace. Whenever delivered this speech before the Inland have not taken the oath of allegiance to the White House and to the U.S. Congress have necessary, this commitment has been

necessary, this commitment has been Empire Waterways Association, which is

heroically defended very good cause for extreme distaste.

on battlefields a western organization devoted to and around the world. We can never repay

dedicated to the proper resource developour veterans for the hardships they en

ment of the great western section of the TRUTH IN LENDING

dured and the sacrifices they made dur- United States. Mr. SIMPSON. Mr. President, the ing these struggles. However, in recog- There being no objection, the speech next public hearing on the so-called nition of this debt, and as a symbol of was ordered to be printed in the RECORD, truth-in-lending bill will be held at the our heartfelt gratitude, we observe No- as follows: end of the third week in November. In vember 11 as Veterans Day.

AN INVESTMENT FOR THE FUTURE-RESOURCES the meantime, the battle over the issues Perhaps the most meaningful way in

DEVELOPMENT of the deceptively labeled measure is which we can honor these men and Mr. Chairman, members of the Inland Emcontinuing on the Senate floor.

women is by reaffirming our dedication pire Waterways Association, and guests; it My colleague from Illinois, Senator to the ideals for which they fought. By is perhaps symbolic that your association was DOUGLAS, has inserted several items in meeting firmly the challenge to access to

founded 30 years ago—in 1933—at a time the RECORD of late. So that the official Berlin or the attempts of Castro to

when the Nation was going through the document of these proceedings shall not spread communism within the Western

throes of a great economic depression. Our be overburdened with but a single view- Hemisphere we are demonstrating our

gross national product in 1933, measured in

dollars of today's purchasing power, was $150 point on this important matter, I should determination to resist encroachments billion. Now, 30 years later, it stands at a like to place in the RECORD a news dis- upon fundamental freedoms. By hold- rate of 588 billion, an increase of 290 percent. patch from the October 23 Washington ing out hope and encouragement to those

Our labor force at that time had 25 percent Post.

people who today are denied the freedom unemployed. Today, while falling short of The article points out that, Joseph of choice and initiative which is rightly

the national objective of full employment, Valachi notwithstanding, credit transac- theirs, and by seeking to create the con

the unemployment rate is still only about

5.5 percent. tions in responsible retail establishments ditions by which they may join the com

This association has been a unifying force are not exorbitant and usurious as some munity of independent, self-governing for the full development of the water and protagonists of the truth-in-lending bill nations we work toward a fundamental land resources of this area. At the time the have alleged. As the story explains: principle of our way of life, that of jus- association was founded, the population of A check of Washington department stores tice for all.

the Northwest area--Washington, Oregon, * * * turned up none that charged as much We are aware that resisting aggres

Idaho, and Montana-was only 3,575,000. as 3 percent. Most charged 142, and one sion and containing the forces of ag

Today this population has grown to 6,214,000, charged a 3-percent service charge at the gression are not sufficient goals for which

while per capita income has risen from $814 time of purchase—but no interest thereafter. our Nation should strive. We know too day's purchasing power.

to $2,370, again measured in dollars of toI imply no inference to the senior Sen- well that in any future global conflict . The growth of this area of the Nation did ator from Oregon in discussing this arti- the only victors would be the forces of not come about from chance or accident; it cle although the story does make allu- destruction and barbarism. We must, has come about through private initiative, sions to a statement by the Senator. I therefore, be prepared to take advantage careful planning, and wise cooperation becall attention to the article so that the of all opportunities to promote interna

tween government and nongovernment RECORD will not imply an indictment of tional understanding and cooperation.

groups and among Federal and State and Washington's department stores, whose The constitution of UNESCO states:

local agencies. This growth has come about credit service charges are completely in

because our people have had the vision to

Since wars begin in the minds of men, it develop and to put into productive use the line with the norms of revolving credit is in the minds of men that the defenses of vast resources which nature has provided. transactions. peace must be constructed.

But we cannot rest on our laurels.


investment incentives and encouraged the We have established the open spaces proThose of you in business and industry flow of American capital abroad, with re- gram to help urban areas acquire space for know the importance of careful choices in sulting strains on our balance of payments. recreation and other needs. investing funds and manpower. We in Gov

If our economic performance is to im- Legislation has been proposed to estabernment likewise must be concerned about

prove as it must, there needs to be sufficient lish a Land and Water Conservation Fund to making the right investment at the right

demand for goods and services to put our aid the States in overall outdoor recreation time. To do this, other than very subjec

unemployed and idle industrial capacity to planning and in acquiring lands and developtively, we have to relate every decision we work. The President's tax reduction pro- ing necessary recreation facilities. The legismake to conditions which are likely to exist

gram is intended to furnish a major stim- lation also provides for financing acquisition in the future.

ulus to consumer and business spending. of recreation lands suitable for addition to In looking to the future, what strikes us

The alternative-advocated by some would national parks and forests.

be to most strongly is the population factor.

stimulate the economy through Three new national seashores have been the short time between January 1961, when

sharply increased Federal expenditures—an authorized by Congress, and proposals for President Kennedy took office, and the end of

alternative not acceptable to the President. five others have been made. fiscal year 1964, there will be some 10 million

We are still operating with a tax system The President has put forward a farsighted more people living in this country. That

which in most respects is the one we adopted 10-year program in oceanography-in his increase is equal to more than half the

to restrain excessive demand during war- own words, a plan "to seed and weed and

time. The effect of the present tax system harvest the oceans.” present population of Canada. If the estimates of the National Planning Association

is such that the Federal budget would have We have, within the past 10 days, pro

shown a handsome string of surpluses rather are right, by 1973 our population will exceed

posed important new legislation dealing with 225 million-nearly 40 million more than last

than deficits since 1957, if the economy had cost allocation and cost sharing for recreayear. It takes no great exercise of the imag

been operating close to full employment. tion and fish and wildlife enhancement at ination to realize that this increase will have

We have been witnessing a paradox-tax water resources projects.

rates which were set high to absorb an exa tremendous effect on our economy-on the

New coal research efforts have led to a consumption of resources, on transportation,

cessive proportion of the gross national coal-to-gasoline pilot plant to be located in on housing, on recreation, and on the labor

product at full employment levels now block West Virginia. force.

the achievement of full employment and In short, we are investing more and more

yield disappointingly low revenues. What kind of an economy will we have in

in our natural resources. In 1962, Federal 1973—just 10 years from now? Here again,

There are many people who think it is expenditures on natural resources amounted the National Planning Association estimates

wrong to cut taxes while the budget is still to $2.1 billion. In 1964-a tight budget

in deficit. I do not share this concern. a gross national product in excess of $900

year-expenditures are estimated at $2.5 bilbillion (in 1962 prices) which is $350 billion

Tax reduction should provide a general lion, and this budget will provide for 46 new

stimulus to our economy and, when proabove 1962 production. And that organiza

starts on water resources projects, other than duction and earnings advance, so will Fedtion also estimates an average family income

watershed projects, estimated to cost nearly eral revenues. Within a few years total of $9,300 compared to $7,100 last year.

$1 billion. Finally, it looks ahead to an employment be even larger than those which have been

revenues under the new tax system should I sometimes wonder what has happened level of 87 million persons 17 million more

to our perspectives and our sense of values produced under present rates. A more than in 1962.

when this kind of prudent public investrapid economic advance—which a tax cut This is a profile of a strong and progressive should assure is the most direct route we

ment is condemned with such epithets as

"pork barrel" and "boondoggle" and worse. nation. But it all rests on a big assumption:

can take to realizing balanced budgets. The that both our private and public decisions

I can think of even stronger objectives that longer we put it off, the longer we will have could better be applied to a government will be wise enough and farsighted enough to

to live with the problems that are keeping which closed its eyes to the ravages of floods, make all this potential a reality. a full employment economy out of reach.

to the drying up of our streams, to the deTo get where we want to be in 1973, we will Our goals for 1973 may stand or fall on the terioration of our rivers and harbors, to the have to deal more effectively with problems decision we make in 1963. that beset us today. This means coming to

stench of pollution, and to the denial of THE FEDERAL ROLE IN NATURAL RESOURCES water and power and natural beauty to those grips with the various factors that slow our


who are prepared to pay for them and use progress: chronic recessions, unemployment, overcrowded schools and too few teachers, Economic growth involves still another

them to move this Nation ahead.

We will not grow while we let our natural racial discrimination, obsolete plant and aspect of public policy; namely, the conequipment, and insufficient demand to take structive development of our natural re

resources lie untapped, while we fail to bring

them into the service of our society, while up the slack in our existing productive sources—land, water, minerals, fuels, forage, potential. It means that we must accelerate timber, fish and wildlife-including their

we glorify our great past and shut our eyes use for recreation which is a necessary part

to our great future, There is no "fiscal our rate of economic growth, control infla

of our lives in an advanced society. tion, and keep down prices and costs through

responsibility" when we refuse to count as

assets our dams, our harbors, our river chancontinuing productivity

We have been fortunate in the abundance improvements,

of natural resources available to us. strengthen our scientific research, carry on


nels, our reclaimed lands, and all the lives a strong effort to advance our technology this gives us no grounds for complacency.

and property saved by flood protection. If

we cannot tell the difference between waste and explore a wide range of sources of en- Many of our resources are nonrenewable, and

and investment, we do not understand even ergy. In short, if we are to achieve our even those that are renewable will require

the basic ABC's of economic growth-and expectations in the 10 years ahead, we must wise management and long leadtime for accept a heavy agenda and commit ourselves their development. There is a consensus that

I, for one, am not prepared to concede this.

The extent to which the budget can proto carrying it out.

our natural resuorces limitations should not
hold back our economic growth if we rec-

vide for investment in resources conservation
ognize the need for technological change,

and development depends, to be sure, on The President has set forth a comprehensubstitution of abundant and cheap raw ma

the President's judgments as to the priorities sive program for national economic growth. terials for scarce and expensive ones, invest

confronting us as a nation. This is where His tax program is expressly designed to deal ment in improved resource management and

the budget process becomes an important with the chief factors that have adversely conservation, and some imports.

tool for reviewing and evaluating the wide affected our economic performance in recent

Let me cite a few examples of recent prog

spectrum of programs and needs which conyears. Why does he believe tax reform is

stitute the business of the United States at ress in natural resources conservation and so urgent? Even though in the third quar

home and abroad. The very difficult job of development: ter of this year the gross national product

the President is to balance the needs and rose to an alltime high of $588 billion, and

Overall, Federal expenditures for water re

opportunities for natural resources developnew records were set for both personal insources and related developments-excluding

ment against such competing requirements operation and maintenance-more than comes and industrial production, there are

as defense, space exploration, housing, doubled in the period 1956–64, while the disturbing indications that our economy is

health, education, and foreign aid, to name operating considerably below its potential. budget as a whole was increasing by less than

only a few. It becomes a question of stretch50 percent and most of that increase was Even now, with 242 years of continuous eco

ing resources to cover our most critical needs, nomic expansion behind us, the Nation is being limited to defense and space programs.

of deciding what must be done now and what producing at a rate which is $30 to $35 Expenditures for these water resources pro

must wait. billion a year below what it could be programs are estimated to rise from $1,346 mil

In the present budgetary climate, with the lion in 1962, to $1,477 million in 1964. Durducing; the average operating rate in manuing this 3-year period, we have provided for

prospeet of short-run revenue losses resulting facturing is 87 percent of capacity which is

from tax reduction needed to stimulate priconsiderably below the preferred rate; and 393 new project starts, including 182 water

vate demand and economic expansion, we more than 512 percent of the labor force is shed protection projects.

must of course apply very critical criteria of unemployed. And private investment has The saline water conversion program has need and immediacy to every program and fallen to an average rate of only 9 percent gotten off the ground.

every new proposal. We are now at work of GNP—well below its performance in the A new attack has been initiated on water on the budget for fiscal year 1965, and our period of 1947–57. In recent years our idle pollution-a destructive and inexcusable general guideline is the President's stateindustrial capacity has dampened domestic form of waste.

ment to Mr. MILLS of the House Ways and Means Committee that "Our long-range goal prove very helpful to river basin commissions authorization and construction starts is the remains a balanced budget in a balanced when they are established..

first step in building public confidence and full-employment economy. Tax reduction I believe that in years to come we will look support for water resources development. must *** be accompanied by the exercise of back to the Senate Select Committee report From this basic framework we can go on to even tighter rein on Federal expenditures as a major turning point in focusing the make the test of relative priority in the which meet strict criteria of national need." Nation's attention on our water resource setting of the annual budget.

As one who has spent over 20 years in Fed- problems and in charting a course for the With respect to problems of reimbursement eral budgeting, I am well aware that budget future. Its emphasis on comprehensive and cost sharing between the Federal Govdecisions are seldom easy; those facing us planning is a major contribution. Its thor- ernment and non-Federal bodies, the Presiin the 1965 budget will be even more difficult ough spelling out of water resource problems dent has directed a study to be made by the and promise to remain so for at least the throughout the country served to make it Secretary of the Interior, working closely next year or two. I can assure you that to clear that the problem is not a sectional one with the Secretaries of Agriculture, Army, our best ability the 1965 budget will show but a national one. Its forecast as to the and Health, Education, and Welfare. These continued forward progress in the impor- steep upward curve of water consumption problems are anything but simple. This past tant field of natural resources development. brought home forcibly the urgency of timely week the Bureau of the Budget, in behalf of Even though we may not be able to go as and forthright measures to conserve and de- the executive branch, sent to the Congress far as we might prefer, it is not our intention velop our water resources. And it made it a draft bill to establish cost sharing and to come to a standstill, much less fall behind. plain that the job cannot be done without reimbursement policy for recreation and fish

spending some money, and in the form of and wildlife enhancement in connection with PLANNING FOR WATER RESOURCES

prudent public investment. Overall, it water resource projects. This bill would not In all our work in the field of water re

demonstrated that to do the job that must require non-Federal sharing of these costs sources, planning is taking on more and more

be done, it will take the collective efforts of at every project, but only where such costs importance. There is nothing abstract about Federal and State governments and private are relatively substantial-most of the costs this at all. We know that we can make serigroups.

would be borne by the Federal Government. ous mistakes and misjudgments unless we re

Let me stress the importance of this point. late what we do, not merely to current cir. The task of conserving and developing the

CONCLUSION cumstances, but to conditions that are likely Nation's resources is tremendous. Whether

As we take inventory, we cannot fail to to exist 10, 20, or even 50 years from now. it is the production of power, the manage

recognize the progress we have made. Our I can think of at least two major efforts that ment of forests and rangelands, the devel

goals are clearer. The task is better underhave been made in this field in recent years- opment of water resources, or the conserva

stood as one of national dimensions. The the Cooke Commission Report in 1950, and tion of helium, there is enough for all of us

President has made plain the relevancy of the recent report by the Senate Select Comto do-Federal, State, local and private or

water resources development to our paramittee on National Water Resources, chaired ganizations—if we are serious about it. Each

mount objective of economic growth and full by the late Senator Kerr, of Oklahoma.

group can accomplish certain tasks better employment. The investment character of Population changes figure importantly in

than others. What we need to do is to get public expenditures for resource development forward planning. Increasing urbanization together.

is seen more clearly than in the past. Comand industrialization will also affect future

prehensive planning has advanced from the

ECONOMIC JUSTIFICATION demands for water. Another factor is the

stage of an idea and is rapidly becoming a way we are presently organized in the Fed- The method by which projects are eval- reality. eral Government to deal with water re

uated is difficult and controversial, but in- It has been a time of progress, of gains sources. We have four major executive evitably there must be certain common prac- that we can measure. But for all of us, branch agencies and four legislative com

tices. It is basic to a program of water much remains to be done. mittees of the Congress concerned with con

resources development that we have workstruction. There are other agencies, such as able standards and criteria against which to the Public Health Service, whose missions af

formulate and evaluate projects. A project fect, or are affected by, water resources de

must be designed and reviewed in both engi- A SURPLUS PROBLEM IN NUCLEAR velopment. In addition, the States enter the neering and economic terms.

BOMBS picture at many points and have an impor

Common standards would be important to

Mr. MCGOVERN. Mr. President, the tant role to perform. Altogether, the need

decisionmaking even if only one agency were for coordination and cooperative planning is engaged in water resources development, distinguished columnist, Mr. Marquis very plain.

but it is even more essential when several Childs, has written an important article One of the major recommendations of the

agencies are in the field. Inconsistent eval- which appears in today's Washington Senate committee was that comprehensive

uation standards were criticized by the Post. plans be prepared for the major river basins Cooke commission in 1950. Out of this

Mr. Childs ask the question which is and that grants be made to the States to

came the Bureau of the Budget's celebrated causing growing concern among a numassist in their planning efforts. In 1961, circular A-47-regarded in some quarters as

ber of us in the Congress and throughout therefore, the President recommended enact

an overly restrictive policy and by others as


the country: "How much nuclear killer ment of a Water Resources Planning Act a step toward rational decisionmaking. which would have established river basin time went on, however, A-47 became less

capacity is enough?” commissions patterned after the Texas and suited to the purposes which it tried to

Mr. Childs calls attention to the reSoutheastern river basin study commissions,

serve. But the need for common standards lated problems of what we do with the to prepare comprehensive river basin plans had been established.

personnel employed at our nuclear for the development of water and related

Last year the President approved a new

weapons plants when shifts in our deland resources. That bill had as its aims (1)

set of policies, standards and procedures fense requirements occur. coordination of Federal agencies through a for formulating and evaluating projects.

I ask unanimous consent that the Water Resources Council made up of the

This document reflects the views of the presSecretaries of the four Federal departments

ent administration and takes into account column by Mr. Childs be printed at this with major responsibilities in the water re

advances in policy and practice in the water point in the RECORD. sources field, (2) cooperative Federal-State

resources field since 1952. One important There being no objection, the column planning through river basin commissions,

change was to raise the limit on the period was ordered to be printed in the RECORD, and (3) grants to assist the States in water

of economic analysis of a project from 50 as follows: resources planning. to 100 years. Another change provides

A SURPLUS PROBLEM IN NUCLEAR BOMBS As many of you know, representatives of that joint costs of a project such as a dam the States objected to certain features of the previously only the specific costs of recreamay now be allocated to recreation whereas

(By Marquis Childs) bill. Consequently, Senator ANDERSON intro

How much nuclear killer capacity is duced a revised bill in the present Congress. tion facilities could be so treated.

enough? In shaping the new defense budget We believe that the Anderson bill, s. 1111, ards and procedures, however. Efforts are

We are not yet out of the woods on stand- this is a deeply puzzling question Secretary with some amendments, will provide a good

of Defense McNamara will in the end have basis for comprehensive planning.

now going on to develop a more precise means to put up to President Kennedy. Because of the urgent need for river basin

of evaluating the benefits of recreation, in- A big industrial development with payrolls plans to guide future investment, the Bureau cluding hunting and fishing. In addition, in a half-dozen States depends on continuof the Budget asked each of the Federal agen

the concept of the least costly alternative ing to produce fissionable material for nucies to coordinate their water resources plan- the cost allocation to recreation, is being got the stuff running out of our ears.

means of providing recreation, which limits clear weapons. Yet, as it is often put, we've ning programs last year in connection with the 1964 budget. They have continued to studied. More work must also be done on Secretary McNamara would like to cut work together and are now reviewing their cost allocation methods.

back production. The Atomic Energy Complans for fiscal 1965 and future years. This

On the whole, therefore, I think we have mission is agreeable to some cutbacks. But has been a useful effort: planning concepts and procedures. The better these are, the bound to generate pressure as the results of

come a long way in improving our standards the decision is complicated by a proposal have been clarified; priorities of studies are less likelihood there will be of irresponsible being identified; and gaps and overlaps are charges of "pork barrel" methods.

a cut are seen in a loss of jobs, the moth

Good balling of plants and the dispersion of highly being reduced. All this effort, I believe, will standards for basing decisions on project skilled technical staffs.

The proposal originating with Senator


strong sense of the real world we live in. CLINTON ANDERSON, Democrat, of New Mexico, chairman of the Joint Congressional Mr. WILLIAMS of New Jersey. Mr. They have rolled up their shirt sleeves Atomic Committee, is to stockpile plutonium. President, in gratitude and appreciation and helped democracy work. The raw material, uranium, would be mined, for the service brave men—both past and

They have given a great deal, but, like processed at great cost and put back in the present-have rendered us, our people

present-have rendered us, our people anything of value, peace and freedom are earth.

expensive items on the world market. On the face of it, with a present capacity have set aside November 11 of each year

Our veterans have made the downpayto destroy every target area in the Soviet for the observance of Veterans Day.

ment. It is up to all Americans to acUnion several times over as the President has Nothing could be more warranted nor

tively join them in their efforts to imstated at least twice, this would seem to be well deserved. a lunatic form of makework. But the astute

Since the birth of this Nation—a na

prove our country, to maintain our freeANDERSON makes a case for the stockpile. tion dedicated to freedom—it has been

doms, and to achieve world peace. It is true, he says, that there is a large necessary for men to bear arms to per

By working to become better and more oversupply. In the U.S. arsenal are many petuate and preserve our way of life.

enlightened citizens, we will be paying old-fashioned nuclear bombs so big that they This is the price we have had to pay for

back our debt the way, I am sure, our would not be dropped under any circum- liberty in a world reluctant to let it

veterans would like it paid. stances. If these were remade and the fis

flower. sionable material put into up-to-date weapons we would have at least a 10-year supply.

In less than 200 years, the people of

PERIODIC CONGRESSIONAL REBut the big surplus is in "yellow cake"this land have built America into a great

VIEW OF FEDERAL GRANTS-INuranium oxide being processed from uranium country—a country built upon the foun

AID by mills such as those of the Kerr-McGee dation of democracy. We owe this opCo. under long-term contracts. What ANDER- portunity for growth to our veterans,

Mr. MUSKIE. Mr. President, on SepSON contemplates is a cutback in the mills, who have been willing to give their lives

tember 4, 30 Senators joined with me to leaving a few large, efficient plants like that

introduce s. 2114, a bill to provide for of Kerr-McGee to go on turning out "yellow so that

we might remain free to build a strong nation.

periodic congressional review of future cake." This, together with the huge current surplus, would be processed into plutonium

A day of tribute is small payment to Federal grants-in-aid to States and to that keeps indefinitely.

the thousands who have died, the thou- local units of government. In my re"We might,” as one expert put it, “want sands who have been maimed and handi- marks accompanying the introduction of to take a look at it after a thousand years.” capped, the millions who have returned

this measure and in a subsequent address Plutonium in the stockpile could be made to civilian life determined to build a on October 31, I explained some of the up very quickly into bombs and warheads, better world for their children—and our more general reasons for my advocacy ANDERSON points out. It would also be avail- children—and to our young men still

of this bill. able for peacetime use in power reactors if giving this country a part of their lives, Additional arguments in support of S. and when nuclear power production comes

2114-especially as they relate to the fisto be more nearly competitive with other away from home and loved ones, to propower sources. tect our hard-earned freedoms.

cal aspects of grants-in-aid-are found That would mean maintaining Oak Ridge

"Thank you" is a small phrase. Yet, in a draft report on "The Role of Equaliin Tennessee, Savannah River in South Caro- behind it is the love of a nation. It is zation in Federal Grants-in-Aid” which lina, and Hanford in the State of Washington not the hollow phrase sometimes ex- was recently considered by the Advisory in operation in part if not in entirety. Han- tended to strangers; rather, it carries the Commission on Intergovernmental Relaford has a payroll of 8,000 and while this is sincerity and warmth of appreciation we tions, and in a study entitled “The Fedsmall as compared to Boeing it is important would extend to a close friend, a brother, eral System as Seen by State and Local to Washington.

father, or a son. The security of our Officials: Results of a Questionnaire The scale of the overkill in America's nuclear arsenal produces highly technical and

country-our homes-personally affects Dealing with Intergovernmental Relaviolently emotional arguments. In his cou- all of us. Our “thank you" has real tions,” which is being prepared by the rageous speech last August calling for sub- meaning.

staff of the Subcommittee on Intergovstantial cuts in arms spending Senator But we are in the debt of our veterans ernmental Relations. Those two studies GEORGE MCGOVERN, Democrat, of South for more than their valor during wartime. indicate some of the difficulties we will Dakota, was content to use the phrase "sev- We are grateful for their participation in experience with respect to future grant eral times over.” But along with other Mem- peacetime as well. Because they have programs. Most of the existing programs bers of Congress he had heard the presenta- experienced the horror of war, because have two distinct, but coordinate, provition of Prof.

Seymour Melman, of Columbia they have seen the starkness of tyranny, sions which determine each State's share 1,200 times what is necessary to destroy all they have returned to civilian life deter- of Federal grant money. The allocation Communist target areas. mined to build a better world.

provision, or apportionment formula, reThe Pentagon says that such far-out fig

They have returned to us with a strong lates to the manner in which the Fedures are based on the impossible assumption sense of citizenship, with the realization eral appropriations for a particular prothat every single nuclear weapon would be that foreign affairs affect us as vitally as gram are apportioned among the recipiused. They ignore the destruction of a part domestic affairs, and with the realization

rs, and with the realization ent governments, provided the grant of the arsenal in a Soviet first strike. And that a government “of the people” must conditions are met. The matching prothey also overlook the fact of a wide disparity be participated in by the people. of weapons, including tactical battlefield

vision pertains to the funds required to weapons, not all of which would be zeroed in Through veterans' organizations, they be raised by the States and sometimes on the major target.

have been active in civic affairs, and have by the local governments as their share But certain Pentagon officials are deeply worked to improve their communities. of the aided program's cost. The operaconcerned with a stockpile so overflowing that They have worked with our youth to tion of both provisions within existing storage has become a major problem. An build a sense of patriotism and love of grants-in-aid suggests that there are a indication of this was the deliberate leak country. They have been active in politi- number of fiscal problems with which last summer that Defense would like to cut cal life on both the State and National congressional committees must periodiback its weapons requirements with the

level. Atomic Energy Commission by a billion

cally come to grips. dollars.

Of our present Members of Congress, The question of whether an equalizaDuring the fiercely fought controversy 362 are veterans. Our last three Presi- tion factor should be included in these over the nomination of former AEC Chairdents have been veterans.

provisions also highlights the need for man Lewis Strauss to be Secretary of Com- There are 22,133,000 veterans in our more careful

careful congressional scrutiny. merce, charges were put in the record show- population today. In a very real sense, Since World War II, Congress has paid ing the interlocking relationship of power- our country's veterans have earned the

our country's veterans have earned the increasing attention to the question of ful financial interests, including Kuhn-Loeb reputation of being “the foundation stone

reputation of being “the foundation stone whether the distribution of Federal and the Rockefellers, in uranium. The late

of Americanism.” This does not mean Senator Robert Kerr, Democrat, of Okla

grants should take into account differhoma, through Kerr-McGee, was a major they are rabid adherents to the extreme ences in the capacities of the States to figure in this gold rush. It was part of the right, but rather that our veterans have finance aided programs from their own complex that brought abundance with the been diligent in the performance of in- resources. It is unlikely that the future inevitable growth of deeply vested interests. telligent patriotism tempered with a will reverse this trend. The effort to

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