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give recognition to this factor has usu- While many Federal grants have ex- enacted at different times within a difally taken the form of attempting to plicit statutory provisions spelling out ferent climate of opinion, without in compensate for the imbalance between in detail how the funds are to be al- each instance due regard being given for the several States' differing program lotted to the State and local govern- the grant provisions of other, existing needs and their relative financial abili- ments, some still permit a portion or all programs. Those State and local offities to support these functions at certain of the funds to be disbursed at the dis- cials responding to the subcommittee desired levels. The decision to imple- cretion of the program Administrator. questionnaire strongly favored congresment or not to implement this goal has In practice, such discretionary author- sional legislation which would make these significantly affected both the apportion- ity has commonly been incorporated into formulas somewhat more uniform and ment and matching provisions of most administrative regulations which specify standardize definitions used therein. In grants-in-aid. Congressional reassess the formula for distributing the grant light of these varying requirements, and ment of future grants-in-aid, as provid. funds. Yet at present, a portion or all this reaction from questionnaire reed in S. 2114, must take into considera- of the funds in eight grant programs are spondents, Congress must probe more tion the fiscal and policy questions raised not distributed in accordance with a deeply into the entire question of matchby the formulas under which these pro- published allocation method. In dis- ing provisions. Are the interests of the grams are financed.

charging its mandate to periodically ex- more well-to-do States protected when Of these three problem areas, the al- amine and reassess these programs, more than 12 percent of the funds allolocation provision raises some of the then, Congress should take a closer look cated in 1962 were disbursed under grant more subtle challenges to test the wisdom at these apportionment provisions and programs with no matching requireof Congress. If the present is any guide attempt to make the excessively rigid, ments? Is equity achieved when more for the future, the distribution of Fed- more flexible; the needlessly intricate than 70 percent of these funds were diseral funds for some programs will con- more simple; the broadly discretionary tributed under a formula which provided tinue to be basically on an equal-share more specific; and the indices of need, for fixed ratio matching? These are basis to each State, since 10 existing less susceptible to misinterpretation and questions of equal justice; they are quesgrants still employ a modified version of suspicion.

tions of national policy. They are premthis formula with little recognition of The matching requirement provision- ised upon existing facts, but they will be differences in the size of the States or or the lack thereof—in the existing with us in the future. Periodic review other indicators of differences in need. grants raises almost as many questions of future grants-in-aid could not ignore When Federal grant programs do pro- as the allocation formulas. In itself, the these issues, and the enactment of S. vide for the allotment of varying amounts fact that 13 aided programs do not re

2114 would help to guarantee their careof funds to each State on the basis of quire any State or local matching con- ful consideration. some indicated need criterion, various stitutes a fundamental reason for peri

Many of the difficulties that I have and sometimes confusing indexes are em- odic reassessment of these programs by discussed in connection with apportionployed to establish the formula. Fre- the pertinent legislative committees. In ment and matching formulas relate to quently, a program's needs are gaged by addition, among the grants-in-aid that the broader problem of equalization. In the population of the States, the popula- do require State and local governments some instances, this factor has been intion in totals, a relevant population to share in program cost, we find that corporated into programs that do not group, or some other service unit crite- the dual method of determining cost require it; in others, it has been inserted rion as an index for determining the allo- share and requirements provides another in a way that fails to accomplish the cation of grant funds. In some cases the subject for periodic congressional in

objectives of Congress. In still other components of program costs are used quiry. Under existing arrangements programs, it has been ignored where as indicators of need. Of the 16 grant there may be variable matching, whereby changing conditions indicate a pressing programs which at present use a finan- the proportion of total program cost need for its recognition. Of the Federal cial need factor in the formula, 15 use borne by the State is determined on the

grants-in-aid now on the books, only

about a third contain what might be per capita personal income as an index basis of an index employed to measure

termed explicit fiscal equalization proof the relative State fiscal capacity and relative State fiscal capacity, thus imthe State-by-State distribution of funds plementing the equalization objective.

plementing the equalization objective. visions. This means that the distribution is weighted accordingly, so as to offer Alternatively, there may be a fixed ratio

of the moneys or the proportion of Fed

eral-State sharing of program cost in more Federal funds to the poorer States. matching formula whereby the State

these programs is governed in some To make matters more difficult, and and/or local government is required to again using the present as a basis for share at the same proportion of program

measure by a recognition of the differfuture predictions, only two-thirds of cost. The latter technique is employed

ences among the States' relative abilities

to support the aided activities. present Federal grant programs dis- at present in most Federal grant pro

Detailed statistical analysis of these tributed their funds in fiscal 1962 on the grams. For many, the fixed Federal

programs by the Advisory Commission basis of only one allocation method. share is 50 percent and for a few pro

on Intergovernmental Relations and Fifteen grant programs employed two grams it is set at two-thirds, occasionally

others indicates that, though these probasic grant formulas; two used three at three-fourths, and even at 90 percent methods; and three distributed their of cost. Over 70 percent of the funds

grams are presumably geared to giving funds on the basis of four methods. In allocated in allocated in fiscal 1962 for Federal

greater recognition to the difficulties

that less well-to-do States have in fimany instances these varying formulas grants-in-aid were governed by a fixed

nancing them, these States have not alare necessary. At the same time, they ratio-matching formula. provide many a headache for State and

Variable matching requirements are

ways profited under them to the extent

that some imagine. To put it more local officials attempting to participate found exclusively in only seven grant

bluntly, Congress intent here with rein these programs. Witness the follow- programs at present, and partially in ing observation of a State official to the five. While constituting a form of equalfive. While constituting a form of equal- spect to ironing out some of the inequal

ities in the program levels among the Subcommittee on Intergovernmental ization in that they recognize the varying

States has not always been fully realized. Relations' question on this topic: abilities of the States and local govern

On the other hand, with respect to cerThe funds made available to [this de- ments to support these aided functions,

tain other grants, there is strong evipartment] *** have such complicated the funds distributed on a variable

dence that the equalization factor should formulas, matching requirements, and re- matching formula basis accounted for

not always be extended to programs of porting of expenditures that it is difficult only 17 percent of the more than $7 for the budget analyst, the Governor and billion that was spent for grant programs

a basically planning, demonstration, the legislature to understand the financing during the fiscal year 1962.

stimulation, or emergency nature. This of these formulas. The program has not

differentiation is not always made at been dealt with in a satisfactory manner,

There is evidence that the present

present, and future congressional reand the budget office continually feels that grant formulas do not properly repre- assessment of Federal grant-in-aid proit is at the mercy of the agency involved in sent differences in the current national grams should carefully weigh the arguthe interpretation of these formulas and re- interest in the different programs, and

interest in the different programs, and ments developed by the Advisory Comquirements.

understandably so. The programs were mission on this subject.

Congress in recent years has increas- mend improvements in various programs. There being no objection, the letter, ingly turned to categorical grant pro- In the final analysis, however, Congress

In the final analysis, however, Congress statement, announcement, and resolugrams as a way of national participa- alone has the task of legislative over- tion were ordered to be printed in the tion in the provision of vital public serv- sight and the power of the purse. We RECORD, as follows: ices. The greater the number of the alone possess the proper instrumentali- SENATORS PROPOSE REGIONAL COMMISSION segments of public services which are ties, the authority, and, what is even FOR GREAT LAKES ECONOMIC DEVELOPMENT aided through these categorical aids, the more important, the requisite attitude- Six U.S. Senators have urged President more urgent becomes the coordination since we represent the States and local

since we represent the States and local Kennedy to create a Federal-State regional of the grant programs and of assuring districts, but serve as U.S. Senators and commission to coordinate and implement through periodic review that the provi- Representatives. Enactment of this leg- economic development in the northern areas sions are in harmony with one another islation would be a significant and highly of Michigan, Wisconsin, and Minnesota. and that the objectives of the Congress desirable step toward strengthening both

In a letter to the President, the Senators in providing Federal aid are carried out the Congress and the Federal system and

asked him to initiate such a program by in a consistent way from category to toward reasserting our traditional role of

calling a White House meeting of Cabinet

members and agency heads administering category. umpire among the 50 States.

economic development programs, together Where equalization is appropriate, In conclusion, Mr. President, I want to with the Governors and the Senators from however, greater consideration should take this opportunity to announce that the three States. be given to more detailed analysis of the hearings on S. 2114 will begin on Decem- Senators making the proposal were Huvarious indexes of program need and of ber 3 at 10 a.m. Any Senator or other BERT H. HUMPHREY and EUGENE J. MCCARTHY, the States' relative ability to support person wishing to testify at the hearing

Democrats of Minnesota; PAT MCNAMARA grant programs. Per capita personal in- should notify the subcommittee, room

and PHILIP A. HART, Democrats of Michi

gan, and WILLIAM PROXMIRE and GAYLORD come, for example, has some limitations 357, Senate Office Building, extension

NELSON, Democrats, of Wisconsin. as an accurate index of the relative 4718, in order that he might be scheduled

The Senators noted that the northern capability of State and local govern- as a witness.

areas of their States have suffered persistent ments to raise revenues. This and other

and substantial unemployment, with the indicators which have been used to im

jobless rate usually about twice the national plement the equalization ideal should be TRANSPORTATION ON THE GREAT

average. carefully reexamined by the Congress- LAKES-ST. LAWRENCE SEAWAY

“This situation has continued despite val

iant efforts by the Federal Government, State not with the view that perfect justice

Mr. HART. Mr. President, the Legis- agencies and local communities," the Senor complete uniformity can be attained, lature of the State of Michigan recently ators said in a statement. but in full recognition of the fact that adopted a resolution memorializing the “We have suggested to the President that the present inequities and existing lack Congress concerning the St. Lawrence

we believe these efforts could be strengthof meaningful standards need correction. Seaway.

ened and improved through better coordiWe must not permit future grants to be

nation and cooperation.

The Senators from the Great Lakes so characterized.

“Since the northern areas of our States States this past summer have organized Mr. President, these are but a few of a conference of Great Lakes Senators to

have much in common in the way of eco

nomic and physical characteristics, our prothe fiscal problems that confront us in review the problem arising from the very posal calls for attacking the problems on a this area of Federal governmental activ- type of concern expressed by the State regional basis. ity which accounts for more than $10 legislature in their October resolution. “We are not interested in just another billion in this fiscal year, which includes Yesterday, Mr. President, the chair

study of the problems. What we want, and at least 60 programs, and which gives man of the Senate Committee on Com

what we think the regional approach will

provide, is the development of a compreevery sign of expansion as we move into merce announced the formation of a

hensive action plan for the entire region." the final third of this century. Consist- Special Subcommittee To Study Trans

The Senators praised the President and ency, uniformity, and equity—these portation on the Great Lakes-St. Law

his administration for the assistance already should be our immediate goals in this rence Seaway.

given such economically distressed areas and difficult area of congressional oversight. The chairman acted, after a number his willingness to devote continued attenEnactment of S. 2114 would go far to- of us on the Committee on Commerce tion to them. ward achie ng these objectives. In at- had called to his attention the concern

“President Kennedy long ago recognized tempting to determine whether future we feel for the investigation of the de

that there is a national responsibility in grant programs will be modified, redi- velopment and progress of transporta

helping these areas join in, and contribute

to, national prosperity," the Senators said. rected, terminated, or continued, con- tion and shipping in the Great Lakes

“The Federal Government has made a gressional committees under this legis- and St. Lawrence Seaway region. It is significant contribution through enactment lation, of necessity, would have to cope my hope that in the weeks immediately of such programs as the Area Redevelopment with some of these fiscal problems. All ahead, this subcommittee will come to

Administration, accelerated public works, of us then would be compelled to focus Michigan, and hold hearings in our port manpower retraining, and rural areas our attention more regularly on the cities. For Michigan has been long a

development. many dollars-and-cents difficulties that proponent of the seaway and I am con

“Further, the States through their dehave arisen as a consequence of the fident hearings from witnesses in our

velopment agencies, and local communities

and private organizations have devoted great sporadic and undirected development of State will produce testimony of signifi- effort to these problems. these grant programs.

cant value to the Committee on Com- “Coordination on a regionwide basis, leadIf we continue to ignore the trouble merce.

ing to an action plan that can be implespots that have emerged in this field, the In addition, Mr. President, I would mented by all, can produce the kind of lastenemies of the grant-in-aid device will call to the attention of the Senate the ing results that these areas need.” increase in number; their arguments will action of six of the Senators representbecome more forceful; and the coopera- ing areas in the upper Great Lakes re

OCTOBER 24, 1963. tive Federal ideal will be seriously im- gion that has some bearing on this same The Honorable JOHN F. KENNEDY, paired. I agree with those scholars who problem.

The White House, claim that this very practical device has A few days ago, I joined with my five

Washington, D.C. been one of the major forces preserving colleagues in urging the President to address to the Northern Great Lakes Land

DEAR MR. PRESIDENT: Last month, in your our traditional system of American fed- form an Upper Great Lakes Commission and People Conference in Duluth, Minn.,

you eralism. If we accept the proposition for Great Lakes Economic Development. called public attention to the very severe ecothat this is 1 nation composed of 50 The text of our proposal is contained nomic hardships which that area of our NaStates-not 50 States joined in loose con- in a letter to the President.

tion has endured for so long. In your refederation or a single State subdivided I ask unanimous consent that this let

marks, you made this very telling point: into 50 administrative units—then the ter and statement by the six Senators, land, water, manpower, resources, trans

“This northern Great Lakes region has grant-in-aid must be strengthened. together with the announcement from Others may help us. The executive

the Senate Committee on Commerce and portation and recreation facilities. It also agencies can advise and conduct their the resolution of the Michigan State As Senators representing the people of this own reassessment of grants-in-aid. The Legislature be reprinted in the RECORD region, we know only too well the extent of States and local governments can recom- at this point in my remarks.

this distress. The substantial and persistent unemployment in the area has been a terrible to oceangoing vessels in 1959, the waterway additional and unnecessary transportation personal burden for thousands of families as provides direct access to the ocean for the costs, as well as the loss of foreign trade from well as a tremendous waste of human re- previously landlocked Great Lakes region. Great Lakes ports, thus stifling competitive sources and an unnecessary restraint to the Total tonnage carried on the seaway in 1962 bidding by Great Lakes industries and agriachievement of a strong and growing na- was 25.6 million tons; its 1965 potential has culture for foreign business, and particutional economy. been estimated at 66.2 million tons.

larly at a time when the Common Market Under your administration, a number of

is bidding for world trade; and programs have been enacted which have, to

Whereas if such a situation is allowed to some extent, alleviated the distress of the


continue, it will have a disastrous effect northern Great Lakes region. We refer, of concurrent resolution memorializing the U.S. upon the economic growth and vitality of course, to such programs as the Area Rede- Congress concerning the St. Lawrence Sea- Great Lakes major industries, including velopment Administration, accelerated public way

automobile and general manufacturing, and works, retraining, rural areas development, Whereas the St. Lawrence Seaway was cre

related commodities, farm products, and and defense contract set-asides. Helpful as ated at a cost of over $471 million to foster labor, and at the same time defense business the programs have been, there nevertheless trade and commerce by ocean vessels be- will be still further diminished: Now, thereremains much that can be done through tween Great Lakes ports and the markets fore be it greater coordination of efforts by the local, of the world through direct, economical,

Resolved by the house of representatives State, and National Governments. In your ocean shipping routes; and

(the senate concurring), That a thorough Duluth address, you emphasized the na- Whereas it was fully anticipated that the study and survey of this entire situation tional responsibility and expressed the hope heartland of America would share in the with respect to foreign commerce and ocean that the "attention of all will be devoted to great expansion that would accompany the freight from the ports of Michigan should these areas until this problem is solved.”

development and opening of the seaway with be undertaken forthwith to determine the It is in this spirit that we believe the co- its consequent stimulus upon the economic complete facts with reference to the comoperative State-Federal efforts in behalf of growth of the whole Midwest; and

petitive position of Michigan industry, agrithe northern Great Lakes region could be Whereas Great Lakes ports, with their in- culture, labor, and all other interests that materially strengthened and improved. As dustrial genius and capability for produc- may be affected by the stifling of the advana first step, we would respectfully suggest that tion with modern machinery, had a right to tages of the St. Lawrence Seaway as it affects you call a meeting of members of your expect that the seaway would result in the Great Lakes ports; and be it further Cabinet and the heads of independent agen- employment of thousands of additional work- Resolved, That such study and survey cies administering economic development ers and the expenditure of millions of dol- should be undertaken by the Economic Welprograms, together with the Governors of lars in plant expansion, if allowed to oper- fare Committee of the U.S. House of RepreMinnesota, Wisconsin, and Michigan, and ate under normal competition conditions; sentatives prior to the opening of the 196th ourselves to discuss a comprehensive program and

shipping season so that shipping rates as of attack on the economic distress of the Whereas after only 4 short years it is now well as the frequency of service by vessels northern areas of these States. Such a pro- becoming increasingly evident that Great shall be determined and any discriminatory gram would include better coordination of Lakes ports are not receiving their fair share

Lakes ports are not receiving their fair share practices may be pointed out for speedy legexisting efforts, pending legislative proposals of foreign trade and commerce in spite of islation or administrative correction; and be and State development activities.

strenuous efforts to encourage maximum use it further It would be our hope that this discussion of the seaway, and that Great Lakes ports Resolved, That the proper interpretation could lead to the formation of a Northern are being circumvented from securing such

and application of the so-called 50-50 law Great Lakes Regional Commission, similar benefits—by limitations and practices which

may be brought about so that the Great perhaps to that already established for the are allowed to be imposed upon foreign com- Lakes geographical area shall be no longer Appalachian region. We have every reason merce from such ports which militate against

bracketed with the Atlantic coast area, nor to believe, furthermore, that the governments full utilization and the realization of the

shall vessels on the Atlantic coast be conof our States would cooperate to the fullest benefits of the seaway; and

sidered “available" when they are not phyextent in such an undertaking.

Whereas inquiry discloses that some of

sically available and are not willing to serve With the demonstrated interest of your such practices and limitations are as fol

the ports of the Great Lakes themselves; and high office, the experience of the Federal lows:

be it further agencies and the cooperation of State and (a) Shipping rates for commodities in for

Resolved, That shipping rates shall likelocal bodies, we are confident that a regional eign commerce from Great Lakes ports are wise be studied and a survey made of the commission could implement a comprehen- set by the Atlantic coast conference of east sive action program that would effectively

same to cause the Federal Maritime Comcoast ship operators, and permitted by the mission to require strict adherence to a reastrengthen and enhance the economic devel- Maritime Commission, which sharply in

sonable and competitive rate structure for opment of the northern Great Lakes area. crease the cost of ocean freight upon cargoes all concerned, and that provision be made

Your consideration of these suggestions originating at Great Lakes ports destined for a reasonable rate structure in the future; would be most appreciated. for world markets, when compared with east

and be it further Sincerely,

coast ports upon the same commodity, reWILLIAM PROXMIRE.

Resolved, That copies of this resolution be sulting in the inability of Great Lakes inEUGENE J. MCCARTHY,

transmitted to the President of the United dustry and agriculture to compete with such HUBERT H. HUMPHREY.

States, to Senator McNamara and Senator east coast ports. PHILIP A. HART.

Hart, and to each Michigan Congressman (b) American-flag ships have not been PAT MCNAMARA. made available at Great Lakes ports except

and Senators and Representatives of the GAYLORD NELSON.

States bordering on the Great Lakes, to the upon limited and rare occasions, but have

Secretary of Commerce, and to the Federal insisted that they were relieved of this reFROM THE SENATE COMMITTEE ON COMMERCE sponsibility of providing ships at ports near

Maritime Commission, as well as to the Gov

ernors and to the senate and house of repA Special Subcommittee To Study Trans- est to the source of shipping commodities

resentatives of each of the States bordering portation on the Great Lakes-St. Lawrence by permission of certain Federal agencies

on the Great Lakes. Seaway has been appointed by Chairman under a misinterpretation and a misapplica

Adopted by the house October 9, 1963. WARREN G. MAGNUSON, Democrat, of Wash- tion of the so-called 50–50 law (Public Law

Adopted by the senate October 23, 1963. ington, of the Senate Committee on Com- 664, 83d Cong., 2d sess., ch. 936, 46

NORMAN E. PHILLES, merce, it was announced today. U.S.C. 1241), which enables such ships,

Clerk of the House of Representatives. Named chairman of the special subcom- located at east coast ports, to take unfair

BERYL I. KENYON, mittee is Senator FRANK J. LAUSCHE, Demo- advantage of the provision that they shall

Secretary of the Senate. crat, of Ohio. Serving with him will be Sen- have 50 percent of such tonnage “to the exators VANCE HARTKE, Democrat, of Indiana, tent such vessels are available at fair and reaPHILIP A. HART, Democrat, of Michigan, sonable rates * * * by geographical area."

VETERANS DAY WINSTON L. PROUTY, Republican, of Ver- Such vessels with the support of certain

Mr. KEATING. Mr. President, on mont, and J. GLENN BEALL, Republican, of Federal agencies are allowed to bracket the Maryland.

Atlantic coast ports with Great Lakes ports Monday, as Veterans Day is observed MAGNUSON said the special subcommittee and call it the same "geographical area,"

throughout the country, Americans will study the development, progress and just as was done before the seaway was con

pause to honor American service veterans needs of the Great Lakes-St. Lawrence Sea structed, so that such ship operators could of all wars. On this day we recall the way.

contend that such ships are "available” at valor and sacrifices of the past when the "This great seaway is, in effect, our fourth Great Lakes ports, when they are no nearer liberty of our country was at stake. It is coastline, along with the Pacific, Atlantic, such ports than the Atlantic coast. Such fitting that this day has been set aside and gulf coasts,” the chairman added. vessels thereon insist that they need not

so that Americans can pay tribute to The seaway, a joint United States-Canadi- actually come into Great Lakes ports and an venture, involves an investment of $130 lift cargoes in foreign commerce, but that

those who have done so much to premillion by the United States in its naviga- such commodities must be transported over- serve the way of life we cherish. tion features alone. This cost is to be re- land from Great Lakes ports to such ships On Veterans Day we pay respect to paid by tolls on freight tonnage. Opened at east coast ports, thus resulting in huge those men who survived America's wars, and especially to the nearly 1 million Arkansas [Mr. FULBRIGHT), the experi

Arkansas [Mr. FULBRIGHT), the experi- after the bill has been referred to the men who made the supreme sacrifice in enced chairman of the Senate Commit- Rules Committee.

Rules Committee. Assuming, optimisthe name of America and freedom. tee on Foreign Relations, for the con- tically, the report is filed today, that Those courageous men and women are summate skill with which he has been means that about the 27th of November with us in spirit and it is their memory performing the arduous task of guiding a discharge petition can be filed-assumthat inspires all of us to rededicate our- the complicated foreign assistance au- ing the other body met every weekday selves to the cause of human freedom thorization bill through this Chamber. during the interval. I am willing to conthroughout the world.

My commendation of the Senator from cede that point, although I have some Mr. President, within the memory of Arkansas is even the greater because he considerable doubt as to its validity. living American war veterans are the has come to the floor of the Senate with Let us now assume that through infierce battles of San Juan, Santiago, a report, unanimously approved by his tense effort on the part of the supporters Chateau Thierry, the Meuse, Argonne, committee, pointing to the many short- of civil rights legislation, the requisite Guadalcanal, the Battle of the Bulge, comings in the foreign assistance pro- number of signatures is obtained in a Okinawa, Korea. These names, although gram, and noting that the committee week. Now this assumption is also subcausing us to recall the terror and cal- had given serious consideration to dis

had given serious consideration to dis- ject to grave doubt, because it would lousness of war, remind us of the valor continuing our foreign aid program and then be the long Thanksgiving Day and courage with which our men fought requiring the administration to come weekend. to defend the liberties of our free so- before the Congress with an entirely new But forgetting any doubts as to the ciety-liberties which we Americans

Americans approach to this problem for fiscal year validity of my assumptions, this would highly treasure and will always defend. 1965. That attitude did not prevail and mean that on December 4, the discharge

As we consider the contributions and the bill before us continues the same old petition could go on the calendar. sacrifices of our veterans, we are re- approach to foreign aid.

At this point we run into another parminded of the vast amount of legislation Why delay the change?

liamentary snarl. Again, 7 legislative we now have affecting veterans and their A realistic appraisal of the parliamen- days must elapse before a Member who families. For America has quite properly tary situation both in the Senate and in has signed the discharge petition can expressed its gratitude to its veterans the other body will readily reveal that arise in the House on either the second through various forms of compensatory we have plenty of time to do what I have or fourth Monday of the month to call legislation. It is only fitting that on this been urging; namely, that we take the up the bill. occasion we in the Senate give renewed time to review, country by country, our The 7 legislative days cannot elapse consideration to the establishment of a foreign assistance program to determine between the 4th of December and the Committee on Veterans Affairs. Unless what countries are deserving of receiving 9th of December, which is the second we have such a committee, we cannot our aid and which are not; which coun- Monday in December. The fourth Monbe fully responsive to the need for legis- tries actually need our aid and which do day in December is the 23d of December. lation or the desirability of correcting not; which countries are making a seri- We have already been told that the Senexisting law. The heavy burdens of the ous and realistic effort to help themselves ate will recess or adjourn on December Finance Committee and of the Commit- and which are not, and which countries 20 until January 2, 1964. It would be tee on Labor and Public Welfare leave in

making a real contribution to most surprising if the other body did not sufficient time for either members or staff strengthening the free world and which follow suit. to consider the specialized and complex are not.

Thus, Mr. President, there will be no legislation affecting veterans. The even- Let us look at the parliamentary House-passed civil rights bill during this tual loser is of course the public and the situation.

session of the Congress unless the House veterans, who especially deserve the ex- The Senate Calendar discloses that Rules Committee gives an almost impertise of a staff familiar with veterans there are only three items on it which mediate rule or if the leadership in the affairs.

have been placed on it since the last cal- Senate changes its announced intention In 1959, a special subcommittee to endar call on November 5, 1963. There is of not bringing in the Senate civil rights the Committee on Rules and Administra- no reason why we cannot at any time lay

no reason why we cannot at any time lay bill, now awaiting the filing of the report tion of which I was a member, after hear- aside the foreign assistance bill to take by the Senate Commerce Committee. ings and thorough consideration, recom- up any other matter the leadership feels So the debate on foreign aid is not mended the creation of a Committee on should be acted upon.

holding up the passage of any civil rights Veterans' Affairs. Such a committee has Now there has been some inaccurate bills. the support of over 40 Members of the talk that our taking sufficient time to Neither is it holding up any tax legisSenate and still no action has been debate the foreign assistance bill thor

debate the foreign assistance bill thor- lation. I understand that with over 100 taken.

oughly is delaying early enactment of the witnesses to go, it is estimated that hearAfter the bugles have blown on Mon- civil rights bill.

ings will go on until Christmas. day, and we have celebrated Veterans

In the first place, the Senate Com- I bring these matters up for a purpose. Day, we should move to establish a Com- merce Committee has not even reported The Foreign Relations Committee, in its mittee on Veterans' Affairs in the Senate. out a civil rights bill. It is awaiting, I excellent report, had said that it con

Mr. President, I know I reflect the understand, the arrival here of a House- sidered seriously writing into the bill a sentiment of all Americans in saluting passed bill.

provision for terminating the foreign and extending my highest praise to What is that status of the House bill?

assistance program in fiscal year 1964 America's war veterans for their valiant I understand that the majority report and expecting the AID administrators to efforts in defending and preserving free- will be filed shortly, and that the mi

will be filed shortly, and that the mi- present, for fiscal year 1965, a completely dom for America.

nority views will be filed about 1 week new approach. Nothing was written inThe PRESIDING OFFICER. Is there later.

to the bill, but the expectation of a new further morning business? If not, morn- The House bill will then be referred to approach for fiscal year 1965 is written ing business is closed.

the House Rules Committee. I suspect, into the committee report.
Mr. President, from all indications, that Mr. President, the beginning of fiscal

committee will not act at once. In fact, AMENDMENT OF FOREIGN ASSIST

year 1965 is not very many months Mr. President, I would expect consider- away-8, to be exact. ANCE ACT OF 1961

able delay in obtaining action by that That means that within 3 or 4 months The Senate resumed the consideration committee. Indeed, Mr. President, the the AID administrators will be before the of the bill (H.R. 7885) to amend further delay may be so long and seem so inter

delay may be so long and seem so inter- Foreign Relations Committee presenting the Foreign Assistance Act of 1961, as minable and hopeless to the supporters the new approach, which I hope has alamended, and for other purposes.

of civil rights legislation that they may ready been worked out, since it will have THERE WILL BE NO CIVIL RIGHTS OR TAXATION try to go the discharge petition route. to be reflected in the President's mes

LEGISLATION THIS SESSION-LET US WORK OUT But, Mr. President, the discharge pe- sages and budget in January.

tition route is full of parliamentary fox- As I have shown before, long debate Mr. GRUENING. Mr. President, I holes.

on our foreign aid program in the Senwish to commend most highly the able First, a discharge petition cannot be ate is not delaying any legislation. Let and distinguished junior Senator from filed until the lapse of 7 legislative days us then go through the foreign assistance program now, on the Senate floor, coun- under at the news conference this morn- Mr. MORSE. Mr. President, earlier try by country, program by program, ing. That will not prevent me from co- today, after a conference with the maand attempt to give the foreign aid pro- operating with him. I would sit down jority leader, and in order that an gram the new look in foreign aid which with him in the next hour, talk about our amendment might be pending, I called apparently everyone is convinced it must differences, and try to adjust them. But up my amendment No. 306, and it was have.

that calls for an attitude of adjustability made the pending question. It is the The time to do it is now. The pro- at the other end of Pennsylvania Avenue so-called United Nations amendment. gram can be greatly strengthened and as well as on Capitol Hill.

In essence it proposes that no more of improved in this, the 1st session of the The Senator from Alaska spoke elo- our funds shall go to any United Nations 88th Congress. By so doing, Congress quently and wisely in his speech by point- country that is able to support itselfcan measurably improve its record of ing out that our task now is to proceed which means most of them. performance and compensate for its in- section by section and country by coun- It has now been suggested to me that ability to act on civil rights and tax legis- try, and let Senators decide whether they I cooperate by withdrawing my amendlation, which perforce have to go over want to vote to bring to an end, in some ment, which I believe I have a right to do. to the second session. countries, the waste, and in some par

However, Mr. President, although I beMr. MORSE. Mr. President, will the ticulars, corruption, that have come to lieve I have the right to withdraw my Senator from Alaska yield?

characterize foreign aid in those coun- amendment, I now ask whether I may Mr. GRUENING. I yield.

tries—not by American administrators, now withdraw it without in any way Mr. MORSE. I congratulate the but by the recipients of the aid.

jeopardizing my right to offer it at a Senator from Alaska for the speech he

Mr. GRUENING. I thank the Sena- later time. has just made on the floor of the Senate, tor from Oregon.

tor from Oregon. In connection with The PRESIDING OFFICER. The under the title “There Will Be No Civil his earlier remarks, his conversation with Senator may do so without jeopardizing Rights or Taxation Legislation This the Secretary of State, and the difference his right to offer the amendment later. Session-Let Us Work Out a Good For- of opinion, the Senator from Oregon yes- Mr. MORSE. Then, Mr. President, I eign Aid Bill."

terday pointed out—and it is quite true— now withdraw my amendment, so that I shall speak at length later this after- that the Senate has a duty to watch over the Senator from Alaska [Mr. GRUENnoon on some of the procedural problems appropriations.

ING] may offer his amendment. that confront the Senate in connection

The use of large sums of money as an The PRESIDING OFFICER. The with the foreign aid bill. Some of my re- instrument of foreign policy is new in amendment of the Senator from Oregon marks will be a bit repetitious of what American history. It began with the is withdrawn. the Senator from Alaska has stated in Marshall plan. Up to that time, it was Mr. GRUENING. Mr. President, I his able speech.

assumed that the President and the Sec- thank the Senator from Oregon for his We are doing exactly what the Sena- retary of State conducted foreign rela- characteristic courtesy and cooperation. tor from Alaska suggested we should do. tions, and that the only function of the Mr. President, to the committee We are going through the bill section by Senate was to approve treaties by a two- amendment, as amended, I now offer on section, trying to make Senators more thirds vote and to confirm the nomina- behalf of myself, Mr.' SIMPSON, Mr. fully aware of the facts concerning the tions of Foreign Service officers. But be- ERVIN, Mr. Moss, Mr. CANNON, Mr. Domforeign aid problem that confronts the ginning with the Marshall plan, an en- INICK, Mr. MORSE, Mr. YARBOROUGH, Mr. country. I would that we were doing it in tirely new factor appeared; namely, the BIBLE, and Mr. SMATHERS, my amendanother way; but we offered the other

use of vast sums of money-millions, tens ment No. 232, which is designed to estabchoice, which was to try to do it on a of millions, hundreds of millions, and lish sound fiscal practice in connection committee basis again, in consultation now billions of dollars—as an instru- with one very important aspect of our with the administration, after it once be- ment of foreign policy. That places a foreign aid. came clear on the floor of the Senate that new and great responsibility on Congress. The PRESIDING OFFICER. The the bill reported by the Committee on

Therefore, it is entirely fitting and amendment to the committee amendForeign Relations was not popular with many of us and ought to be amended. It proper that Congress should inject itself ment, as amended, will be stated. has been amended already, and I hope it countries that are the beneficiaries of mittee amendment, as amended, it is

into the activities of every one of the The LEGISLATIVE CLERK. In the comwill be amended many more times in the these huge appropriations; otherwise we proposed to delete, on page 50, lines 8 days ahead.

would be delinquent and failing in our through 17, as follows: I still plead with my administration, as I did with certain emissaries who were constitutional duties. So when the op

(6) in the case of loans under part I (exsent to see me yesterday from the admin- stitutional duties say that the President terms which shall include (A) interest at a ponents of the effort to fulfill our con

cept under section 205), shall establish istration, that it is still not too late to is in charge of foreign policy and that rate not lower than three-fourths of 1 per get together, rather than to be quarreling Congress has no business_interfering,

centum per annum during the five-year with one another at distances of blocks. they are not up to date. They do not period following the date on which the funds I shall have something to say this

are initially made available under the loan, afternoon about a point of view expressed realize that 20 years ago an entirely new

and not lower than 2 per centum per annum by the very able and wonderful Secretary era in foreign policy was ushered in.

thereafter, and (B) repayment on of State at a news conference this morn

I applaud what the Senator from Ore

amortized basis, beginning not later than

five years after the date any funds are ing—a point of view with which I am in gon said, and I echo it: We have a specomplete and total disagreement. It cific duty to watch over the appropria- initially made available under the loan, and must be answered on the floor of the tions and the conduct of our foreign aid ending not later than thirty years following Senate today, and it will be answered on

in every country, because we are being the end of such five-year period. the floor of the Senate today. But that asked to approve huge sums for the pur- And between lines 3 and 4, insert the does not mean that I have the slightest suance of the foreign aid policy in those following new section:

countries. That cannot be emphasized lessening of affection for this wonderful

(6) In the case of loans under part I shall Secretary of State, too often. Congress now has a new

establish terms under which interest shall I merely think he was dead wrong in function: to cooperate with the Execu

be at a rate not less than the rate arrived at

by adding one-quarter of 1 per centum per his news conference this morning on the tive in the whole foreign aid field. subject of the prerogatives of Congress.

Mr. President, I call up amendment annum to the rate which the Secretary of

the Treasury determines to be equal to the He is an able lawyer. I think he knows No. 232. I ask unanimous consent that

average annual interest rate on all interestbetter. But I can well understand how, there may be a quorum call without my

bearing obligations of the United States then with the pressures under which this losing the floor.

forming a part of the public debt as comwonderful man is working, he finds his

Mr. MORSE. Mr. President, will the

puted at the end of the fiscal year next will thwarted, as it is being thwarted in Senator from Alaska yield, if it is agreed preceding the date the application for the Congress, by Congress exercising in its that he may do so without losing his loan is approved and by adjusting the result

so obtained to the nearest one-eighth of 1 clear obligations to the taxpayers in re- right to the floor? spect of the foreign aid bill, he might Mr. GRUENING. Yes.

per centum;. yield to the apparent pique that the news

The PRESIDING OFFICER. With- Renumber the remaining sections apstories, at least, indicate he labored out objection, it is so ordered.



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