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have something else to which to turn, for in Latin America. On the contrary, the information by going to one of those which to put up a case. As we stand tide has turned in Argentina and in corporations than by going to a Governnow, we do not have that.

Peru. There is a much better situation ment agency. What is the advantage of I hope very much that the Senate in Venezuela. There is a good situa- getting this advice? will approve the amendment.

tion in Colombia. Mexico is unique in Mr. JAVITS. It is not a Government Mr. ALLOTT. Mr. President, will the achievements in Latin America.

committee; it is a private enterprise Senator yield?

My first answer is that there are posi- committee entirely. It will give out Mr. JAVITS. I yield.

tions of strength in Latin America which pooled advice. Various segments of priMr. ALLOTT. I believe the amend

I believe the amend- can be buttressed and sustained, which vate industry will also debate the quesment of the Senator from New York is should not be let go the way of others. tion with each other, checking the adpraiseworthy. However after watching Second, the American business com vice against each other. Incidentally, the operations of the State Department munity is heavily involved in Latin many of these people will not meet with over the past few years, I must say that America today. If my memory serves one another now for fear that somebody nothing reminds me more of their ac me correctly—and I believe I am cor is going to charge them with violation of tions as the little signs I have seen in rect-the figure for American investment the antitrust laws. country stores all over my own State and in Latin America now is between $8 bil In addition, it will introduce other elein small offices elsewhere, bearing the lion and $9 billion, with thousands of ments into the area, such as labor and whimsical expression, “Don't confuse me Americans employed. There is a con- educational institutions—it is not a very with the facts—my mind is already made stant reinvestment of earnings, though big committee; it has a limitation of up." I do not ask my questions humor- the net investment now is only some $200 nine-in an effort to do the job. ously. I am serious. million a year, which is very small and

Mr. AIKEN. If a committee of busiDoes the Senator believe the State one of the real disasters Latin America nessmen doing business in foreign counDepartment will pay any attention to has faced. So there is a big stake, and tries were to get together, the antitrust the report of this commission? I do not there are involved many persons who can laws would not apply to their findings. question that the commission could make accomplish constructive ends.

Is that correct? a contribution, but what attention does

Third, it is conceivable that this pro Mr. JAVITS. It would not if they the Senator believe the State Depart- gram might be accomplished by private confined themselves to the mandate of ment would pay to it?

enterprise acting as an agency of the the law, namely, how foreign aid can best Mr. JAVITS. One of the things we Government, carrying out Government function in the private enterprise area. have been short of is affirmative alter- contracts. There would be a great savnatives. Frankly, I do not know whether ing overhead for a bureaucracy, and

Mr. AIKEN. The Senator does not the State Department will pay any at- there would be available the capability

think they would do anything else?

Mr. JAVITS. I think we would have tention to the report or whether the of persons who do not have to be trained State Department will treat it as a pleas- for the job and who could be employed guarantee against that.

enough Government officials around to ant boondoggle which I and other Sena- in the foreign aid program. tors have engaged in.

Mr. MORSE. Mr. President, I think I believe it will be supremely important with the Senator in deprecating the way good question. Next week we shall have

For all those reasons, much as I join the Senator from Colorado has raised a in giving us some kind of text from certain Latin American countries comwhich we can argue, from which we can

an amendment or two to broaden the mit economic suicide when they destroy Hickenlooper amendment with relation suggest alternatives. That is what we

the climate for investment by private to nationalization of industries in Latin are really short of. The State Department has the staff, area and an opportunity for this kind

enterprise, I still think there remains an America. I think it needs to be broadthe equipment, the facts, and the figures of program to be effective.

ened. it requires. Although we know there is

In regard to this amendment, the

Mr. ALLOTT. There is in this area question was raised as to whether the something wrong, all that we can do is to cut the program to ribbons. That is an opportunity; but I would not, by my State Department would

pay much atsilence want it understood that I believe tention to it. the only alternative we have. I should

tention to it. Judging from the way it the list of countries the Senator has cited has ignored suggestions in the past, one like to have another choice. I hope the State Department will give is an accurate

list. The Senator appar- would think the answer should be "No."

ently has been reading different books However, things have since changed. I this question the attention and devotion which it deserves. If it does not, at and receiving different mail and has dif- have the lurking suspicion that since least we shall have something upon Latin America, because I cannot go made in it, this being the first time such

ferent friends from those I have in the debate on the bill and the changes which we can base a policy-with some knowledge, some facts and some back- along with him in that respect.

changes have been made, it may dawn ground—instead of being bereft, as we tional boards and bureaus, I shall sup- means business in regard to the foreign

While I am reluctant to support addi- on the State Department that Congress are today, of proper alternatives. Mr. ALLOTT. I should like to ask the port

the pending amendment because we aid program. I would not be surprised Senator another question in all serious- must explore the area; we must get if the State Department cooperated with ness. We have witnessed the confisca- something done. However, I have some

us in putting into effect the objectives of tion of property in many countries; such question about whether the State De- the amendment. has occurred in the past few days. partment will cooperate.

Mr. HUMPHREY. Mr. President, I Does the Senator believe that a Com

Mr. AIKEN. Mr. President, will the am happy to cosponsor this amendment mission could stop such confiscation of Senator yield?

with the senior Senator from New York. property? This is an important matter, Mr. JAVITS. I yield to the Senator The Javits-Humphrey amendment because until assurance can be given, from Vermont.

could do much to strengthen the forbusinessmen will not invest in Latin Mr. AIKEN. Can the Senator esti- eign aid program; it could do much to America. Anyone who invests there now, mate the cost of the amendment? win widespread support for the aid agengenerally speaking, I would consider to Mr. JAVITS. I hesitate to state a cy within the business and professional be quite foolish.

minimal figure, but I would say not more community in this country. What can the Senator say with respect than $50,000. No compensation is pro The Senator from New York has done to how his amendment might affect what vided for members of the committee; it is much to strengthen and increase particiseems to be a generally uniform policy strictly a housekeeping arrangement. pation by the American private enterin Brazil, Peru, and other places to na Mr. AIKEN. What advantage would prise sector in the foreign aid program. tionalize industries and to confiscate this committee have over Standard Oil I am happy to be associated with SenAmerican property and American goods of New Jersey, Anaconda Co., Grace ator JAVITS in the joint effort growing of the American businesses who have Line, and other powerful corpora- out of the NATO Economic Committee gone into such countries to do exactly tions that are already doing business to strengthen the private enterprise secthe job the Senator wishes to have done? there? If I really wanted to obtain in- tor in Latin America. I refer to the

Mr. JAVITS. In the first place, there formation or advice on these out-of-the- work of the Atlantic Community Develis nothing universal about the situation way places, I think I could obtain more opment Group for Latin America.

I believe that the inclusion in an

Mansfield Pell

the international Communist conspiracy; advisory committee of leading represent

Hayden
McClellan Prouty

and (3) such assistance will further proHickenlooper McGovern Proxmire atives from the fields of business, labor,

McIntyre

mote the independence of the recipient

Randolph and the professions can prove invalu. Hruska Mechem

Scott

country from international communism. able to those charged with administering

Humphrey Metcalf

Simpson

My amendment would absolutely bar
Inouye
Miller

Smith the AID program.

Jackson
Monroney Sparkman

the granting of aid under the Foreign The Senate Foreign Relations Com

Morse

Symington Assistance Act, but not under Public Law mittee has recommended for considera- Jordan, N.C. Morton

Tower

480, to any Communist country. The Jordan, Idaho Moss

Walters tion by the executive branch, a number

Keating
Mundt
Williams, N.J.

following language would remain in this of changes in the direction of the for- Kennedy Muskie

Williams, Del. section as it is: eign aid program. In considering these

Kuchel
Nelson
Young, N. Dak.

For the purposes of this section, the
Lausche Neuberger Young, Ohio
recommendations, a highly qualified ad-
Magnuson Pastore

phrase "Communist country" shallvisory committee should be of invalu

NAYS—0.

Mr. MORSE. Did the Senator say able assistance.

NOT VOTING-26

that paragraph (g) would remain as it is? The PRESIDING OFFICER (Mr.

Byrd, Va. MCINTYRE in the chair). The question Byrd, W.Va.

Holland Robertson

Mr. LAUSCHE. No. What I shall Johnston Russell

read now would remain as it is: is on agreeing to the amendment offered Cooper

Long, Mo. Saltonstall

For the purposes of this subsection, the by the Senator from New York [Mr. Edmondson Long, La. Smathers

Engle

McCarthy Stennis
JAVITS], for himself and other Senators,

phrase "Communist country” shall include
Ervin
McGee
Talmadge

specifically, but not be limited to, the folto the committee amendment, in the Goldwater McNamara Thurmond lowing countries: nature of a substitute, as amended.

Gore
Pearson

Yarborough
The yeas and nays have been ordered,

Hartke
Ribicoff

On page 68 of the report the countries

which are now known as Communist and the clerk will call the roll.

So Mr. JAVITS' amendment to the comThe legislative clerk called the roll. mittee amendment was agreed to.

countries are specifically identified. This

specific identification does not preclude Mr. HUMPHREY. I announce that

Mr. JAVITS. Mr. President, I move

the administrator from declaring other the Senator from Virginia [Mr. BYRD], to reconsider the vote by which the

countries to be Communist. The specific the Senator from West Virginia [Mr. amendment to the amendment to the amendment was

identification includes Poland and BYRD), the Senator from Oklahoma agreed to.

Yugoslavia. [Mr. EDMONDSON], the Senator from Mr. KEATING. Mr. President, I move

The Proxmire amendment, adopted North Carolina (Mr. ERVIN), the Senator to lay that motion on the table.

yesterday, specifically prohibits the from Tennessee [Mr. GORE], the Senator The motion to lay on the table was

granting of foreign aid to Yugoslavia. from Indiana (Mr. HARTKE), the Sen- agreed to.

My amendment would specifically proator from Florida [Mr. HOLLAND), the Mr. LAUSCHE. Mr. President, I have

hibit the granting of foreign aid, but not Senator from South Carolina [Mr. sent an amendment to the desk, which

aid under Public Law 480, to any of the JOHNSTON), the Senator from Missouri I now offer.

countries identified in this measure. [Mr. LONG], the Senator from Louisiana The PRESIDING OFFICER. The

Mr. MORTON. Mr. President, will the [Mr. LONG), the Senator from Minne- amendment will be stated.

Senator from Ohio yield? sota [Mr. MCCARTHY], the Senator from The LEGISLATIVE CLERK. On page 47,

Mr. LAUSCHE. I yield to the Senator Wyoming [Mr. McGEE], the Senator between lines 12 and 13, it is proposed

from Kentucky. from Michigan [Mr. McNAMARA), the to insert the following:

Mr. MORTON. The Senator's amendSenator from Connecticut [Mr. RIBI (4) The second sentence of subsection (f),

ment would be in consonance with the COFF], the Senator from Virginia [Mr. as amended by paragraph (3), is amended

action taken by the Senate yesterday in ROBERTSON), the Senator from Georgia by inserting a period after the word "Act"

adopting the Proxmire amendment, by [Mr. RUSSELL), the Senator from Florida and striking out the remainder of such

sentence. [Mr. SMATHERS], the Senator from Mis

making his amendment apply to all sissippi [Mr. STENNIS], the Senator from graph beginning on such line as paragraph

On page 47, line 13, redesignate the para

Communist countries.

Mr. LAUSCHE. That is correct. Georgia [Mr. TALMADGE), the Senator (5).

Mr. MORTON. Is the Senator cerfrom South Carolina [Mr. THURMOND], and the Senator from Texas [Mr. YAR

Mr. LAUSCHE. I shall speak for not

tain that his amendment would not pre

clude Public Law 480 relief? BOROUGH] are absent on official business. more than 5 minutes.

Mr. LAUSCHE. Yes; because my I also announce that the Senator

Mr. MORSE. Mr. President, I ask for

amendment relates to aid "under this from California [Mr. ENGLE] is absent the yeas and nays on the amendment. because of illness.

The yeas and nays were ordered.

act." I do not say "under this or any

other act.”
I further announce that, if present
Mr. MILLER. Mr. President, is the

Mr. AIKEN.
Senator's amendment printed?

Mr. President, will the and voting, the aforementioned Senators

Senator yield? would each vote "yea."

Mr. LAUSCHE. No; it is not.

Mr. LAUSCHE. I yield.
Mr. KUCHEL. I announce that the
I direct the attention of Senators to

Mr. AIKEN. I assume that the SenaSenator from Kentucky [Mr. COOPER), page 63 of the report, subsection 620(f).

page 63 of the report, subsection 620 (f). tor's amendment is, perhaps, aimed not the Senator from Arizona [Mr. GOLDThat is the subsection with which my

only at Yugoslavia, but also at Poland WATER), the Senator from Kansas [Mr. amendment deals. Subsection

and all other Communist countries. PEARSON) and the Senator from Massa- specifically declares:

Can the Senator tell us how much of chusetts [Mr. SALTONSTALL] are neces No assistance shall be furnished under this the land in Yugoslavia is publicly owned? sarily absent.

act, as amended (except section 214(b)), to Mr. LAUSCHE. It is claimed that If present and voting, the Senator any Communist country.

substantial parts of the land in Yugofrom Kentucky [Mr. COOPER), the Sen Section 214(b) deals specifically with slavia are privately owned and not colator from Arizona [Mr. GOLDWATER), the some hospital aid to Poland.

lectivized; but the fact is that there is Senator from Kansas (Mr. PEARSON) and Subsection (f) further provides: indirect collectivization through the imthe Senator from Massachusetts [Mr.

This restriction may not be waived pur

position of huge taxes. SALTONSTALL] would each vote "yea." suant to any authority contained in this act.

Mr. AIKEN. Such as in the United The result was announced-yeas 74,

States?

To that extent the language in the act nays 0, as follows:

Mr. LAUSCHE. And through the exwill remain as it is, except that a period [No. 220 Leg.]

action of other tribute. In theory, the will be placed after the word "act.” YEAS-74

land is privately owned; in fact, it is There will be stricken from that subAiken Brewster Dirksen

collectivized. section the language: Allott Burdick Dodd

Mr. AIKEN. Can the Senator from Anderson Cannon

Dominick

This restriction may not be waived pur Ohio tell us who owns the electric lines
Bartlett
Carlson
Douglas

suant to any authority contained in this act
Bayh
Case
Eastland

in Yugoslavia ?
Beall
Church
Ellender

unless the President finds and promptly reBennett

Mr. LAUSCHE. They are government
Clark
Fong

ports to Congress that: (1) such assistance Bible

owned.
Cotton
Fulbright

is vital to the security of the United States;
Boggs
Curtis

Gruening (2) the recipient country is not controlled by Mr. AIKEN. Who owns the railroads?

Mr. LAUSCHE. The government owns Mr. AIKEN. Inasmuch as the amend Kennedy Morse

Scott
them.
ment adopted yesterday applied to Yugo-

Kuchel
Morton

Simpson
Lausche Moss

Smith Mr. AIKEN. Is the Senator certain slavia, which, in my opinion, is the least Magnuson Mundt

Sparkman of that? Communist country of the Eastern Eu Mansfield Muskie

Symington Mr. LAUSCHE. Yes; the government rope group, it should apply also to other

McClellan Nelson

Tower

McGovern Neuberger Williams, N.J. owns everything in Yugoslavia except, Communist countries. Therefore, I have

McIntyre Pastore

Williams, Del. possibly, some paltry shoe shop or bar- no objection to the amendment.

Mechem Pell

Yarborough ber shop, or operation of that type. The PRESIDING OFFICER. Did the Metcalf Prouty

Young, N. Dak. Miller

Proxmire Mr. AIKEN. Does the government Senator from Ohio ask for the rescind

Young, Ohio

Monroney Randolph own most of the shops and enterprises ing of the order for the yeas and nays on

NAYS-O in Yugoslavia? his amendment?

NOT VOTING-26 Mr. LAUSCHE. Yes; except the small Mr. LAUSCHE. No.

Byrd, Va. Holland Robertson enterprises, such as I have mentioned. The PRESIDING OFFICER. The

Byrd, W. Va. Johnston Russell Mr. AIKEN. How does it happen that question is on agreeing to the amend Cooper

Long, Mo. Saltonstall Yugoslavia has laws pertaining to bank- ment of the Senator from Ohio [Mr. Edmondson Long, La. Smathers

Engle

McCarthy Stennis ruptcy and other activities, such as we LAUSCHE] to the committee amendment

Ervin
McGee

Talmadge have in the United States?

in the nature of a substitute. The yeas Goldwater McNamara Thurmond Mr. LAUSCHE. I cannot answer that and nays have been ordered, and the Gore

Pearson Walters question. Yesterday the Senate adopted clerk will call the roll.

Hartke

Ribicoff the Proxmire amendment, which dealt The legislative clerk called the roll. So Mr. LAUSCHE's amendment to the with Yugoslavia. I desire to make the Mr. HUMPHREY. I announce that committee amendment, as amended, was law applicable to all Communist coun- the Senator from Virginia (Mr. BYRD), agreed to. tries alike.

the Senator from West Virginia (Mr. Mr. LAUSCHE. Mr. President, I move Mr. AIKEN. I agree with the Sena- BYRD], the Senator from Oklahoma (Mr. that the vote by which my amendment tor from Ohio that if the law is applied EDMONDSON), the Senator from North to the committee amendment was agreed to Yugoslavia, it should apply to all other Carolina [Mr. ERVIN), the Senator to be reconsidered. Communist countries, as well. But does from Tennessee [Mr. GORE), the Senator Mr. FULBRIGHT. Mr. President, I the Senator undertake to make the law from Indiana (Mr. HARTKE), the Senator move to lay on the table the motion to apply to shipments under Public Law from Florida (Mr. HOLLAND], the Senator reconsider. 480?

from South Carolina [Mr. JOHNSTON), The motion to lay on the table was Mr. LAUSCHE. I do not.

the Senator from Missouri (Mr. LONG), agreed to. Mr. CHURCH. Mr. President, will the the Senator from Louisiana (Mr. LONG], Mr. LAUSCHE. Mr. President, I call Senator yield?

the Senator from Minnesota [Mr. Mc up and offer, to the committee amendMr. LAUSCHE. I yield.

CARTHY), the Senator from Wyoming ment, as amended, my amendment No. Mr. CHURCH. Is it not correct that

Is it not correct that (Mr. McGEE], the Senator from Michi 294. at the present time, having adopted the gan [Mr. MCNAMARA), the Senator from The PRESIDING OFFICER. The Proxmire amendment, we are confronted Connecticut (Mr. RIBICOFF], the Senator amendment of the Senator from Ohio to with the anomalous situation of requir- from Virginia [Mr. ROBERTSON], the Sen the committee amendment, as amended, ing the President to make certain find- ator from Georgia (Mr. RUSSELL), the will be stated. ings respecting our national security, Senator from Florida (Mr. SMATHERS), The LEGISLATIVE CLERK. On page 52 which findings, if made, would permit the Senator from Mississippi (Mr. STEN of the committee amendment, as amendaid to be given to such Communist coun- NIS), and the Senator from Georgia (Mr. ed, beginning with line 15, it is proposed tries as the Union of Socialist Soviet TALMADGE), the Senator from South to strike out through line 5 on page 53, Republics and Red China themselves? Carolina (Mr. THURMOND], and the Sen as follows:

Mr. LAUSCHE. The Senator is cor- ator from Tennessee (Mr. WALTERS], are SEC. 402. Section 231 of the Trade Expanrect. absent on official business.

sion Act of 1962 (Public Law 87–794, apMr. CHURCH. But not to the one I also announce that the Senator from proved October 11, 1962) is amended as folCommunist country, Yugoslavia, which California (Mr. ENGLE) is absent because lows: has given evidence of being less domi- of illness.

(a) Insert “(a)" before the words "The

President shall". nated by the international Communist I further announce that, if present and

(b) Add the following new subsection: conspiracy than any other? . Is not the voting, the aforementioned Senators

"(b) The President may extend the beneSenator, by his amendment, seeking to would each vote "yea."

fits of trade agreement concessions made by apply the prohibition equally to all Com Mr. KUCHEL. I annouce that the the United States to products, whether immunist countries, instead of selecting Senator from Kentucky (Mr. COOPER), ported directly or indirectly, of a country Yugoslavia for more onerous treatment the Senator from Arizona [Mr. GOLD or area within the purview of subsection (a), than would be given any other such WATER), the Senator from Kansas (Mr. when he determines that such treatment country? PEARSON), and the Senator from Mas

would be important to the national interest

and would promote the independence of such Mr. LAUSCHE. The Senator from sachusetts (Mr. SALTONSTALL) are neces

country or area from domination or control Idaho has described the situation ac- sarily absent.

by international communism, and reports curately.

If present and voting, the Senator this determination and the reasons therefor Mr. CHURCH. I commend the Sena- from Kentucky [Mr. COOPER), the Sena to the Congress." tor for offering his amendment.

tor from Arizona (Mr. GOLDWATER), the On page 53, in line 6, it is proposed to strike Mr. FULBRIGHT. Mr. President, will Senator from Kansas [Mr. PEARSON), out "SEC. 403" and insert in lieu thereof the Senator yield?

and the Senator from Massachusetts "SEC. 402". Mr. LAUSCHE. I yield.

[Mr. SALTONSTALL] would each vote Mr. DIRKSEN. Mr. President, will Mr. FULBRIGHT. I am perfectly “yea.”

the Senator from Ohio yield briefly to willing to accept the amendment. The The result was announced-yeas 74, me? Senator has already explained it. I de- nays 0, as follows:

Mr. LAUSCHE. I yield. sire to add one comment. No aid is pro

[No. 221 Leg.)

Mr. DIRKSEN. I wish to ask the mavided in this bill for any communist

YEAS_74

jority leader about the schedule for the country. While the words of the amend- Aiken

Case
Gruening

remainder of today. ment make certain the understanding

Church
Hart

Mr. MANSFIELD. Mr. President, I am that such aid will not be granted, I did

Anderson Clark

Hayden
Bartlett
Cotton
Hickenlooper

glad this question is raised, because there not want the implication to be left that

Bayh
Curtis
Hill

have been some queries as to what will the administration was preparing to dole Beall

Dirksen
Hruska

be the business of the Senate for the rest out billions of dollars to communist Bennett Dodd

Humphrey

of the evening. countries.

Bible

Dominick Inouye
Boggs
Douglas
Jackson

It is my understanding that the disMr. AIKEN. Mr. President, will the Brewster Eastland

Javits

position of the pending amendment to Senator from Ohio yield once more?

Burdick Ellender Jordan, N.C.
Cannon
Fong
Jordan, Idaho

the committee amendment will conclude Mr. LAUSCHE. I yield.

Carlson
Fulbright Keating

the business of the Senate for today.

ORDER FOR RECESS TO TUESDAY, I am prepared to answer any questions Mr. LAUSCHE. I yield.
AT NOON
that Senators wish to ask.

Mr. DOUGLAS. I should like to adMr. MANSFIELD. Mr. President, I

Mr. CURTIS. Mr. President, will the dress a question to the Senator from

Ohio and possibly also to the Senator now ask unanimous consent that when Senator yield for a question? the Senate completes its business this

Mr. LAUSCHE. I yield.

from Arkansas. Is not the term "mostevening, it stand in recess until 12 o'clock is involved, I should like to ask the nomer? A nation which is said to be

Mr. CURTIS. In order to clarify what favored-nation" something of a misnoon on Tuesday next.

The PRESIDING OFFICER. Is there Senator a question. Under the existing given “most-favored-nation” treatment objection? Without objection, it is so law the most-favored-nation treatment is not given an exclusive privilege, is it, ordered.

is not accorded to Communist countries. but is it not merely given the same rights Is that correct?

which other countries receive under that Mr. LAUSCHE. That is correct.

clause? In other words, the country is

Mr. CURTIS. If the amendment of given equality of treatment and not a AMENDMENT OF FOREIGN ASSIST- the Senator from Ohio is agreed to, will special or unique favor. Is that not ANCE ACT OF 1961 the existing law continue in effect?

true? The Senate resumed the consideration Mr. LAUSCHE. That is correct.

Mr. LAUSCHE. That is true with of the bill (H.R. 7885) to amend further

Mr. FULBRIGHT. Mr. President, will respect to all nations that come within the Foreign Assistance Act of 1961, as the Senator yield?

that category, but I would say that the amended, and for other purposes.

Mr. LAUSCHE. I yield.

term "most favored nation" does not Mr. DIRKSEN. Mr. President, let me

Mr. FULBRIGHT. The action last mean that one particular nation has inquire whether the Senator from Ohio year in relation to the Trade Expansion preferential treatment over and above all expects to have final action on his

final action on his Act has not been put into effect, but is others. amendment taken this evening.

pending the outcome of the action of the Mr. DOUGLAS. I thank the Senator. Mr. LAUSCHE. Yes, for I shall not Senate. Yugoslavia has had most-fa- Is it not true that there are in effect

vored-nation treatment since 1881. speak for more than 5 minutes in dis

most-favored-nation agreements with cussing the amendment.

The significance of the proposal is approximately 44 countries, including all

that if we do not reject the amendment the countries inside GATT, and also inMr. MORSE. Mr. President, on the of the Senator from Ohio, that provision cluding some of the countries outside question of agreeing to the Lausche will go into effect and the most-favored- GATT? amendment to the committee amend; nation treatment will be withdrawn. ment, as amended, I ask for the yeas and But it has not yet been withdrawn.

Mr. LAUSCHE. The Senator is cor

rect. nays.

Mr. LAUSCHE. The Senator has ac Mr. FULBRIGHT. That is correct. The yeas and nays were ordered.

curately described the situation. But I I should like to make a comment with Mr. LAUSCHE. Mr. President, I think also feel that my answer to the question particular reference to the question my amendment will be best understood of the Senator from Nebraska [Mr. asked by the Senator from Nebraska to by referring to page 81 of the report. CURTIS] is accurate. Under the law as illustrate the effect of the amendment. The amendment deals with the Trade it now reads, the President is required, The Senator has said that the amendExpansion Act of 1962.

as soon as practicable, to terminate, ex- ment would not bar any trade; it would The provision deals with section 231, port and import trade with Communist not legally or theoretically. But in which in the unitalicized lettering con- countries. The act was passed in 1862, practice it would. For example, I call tains the language of the present law. but not up until the present time has attention to some of the items that we The present law reads as follows:

the President deemed it to be practical import from such countries. SEC. 231. PRODUCTS OF COMMUNIST COUNTRIES to terminate the most-favored-nation Consider the item of bristles. Under OR AREAS treatment.

the most favored nation agreements the (a) The President shall, as soon as practi Mr. CURTIS. In order to make the tariff is 2 cents a pound. That would be cable, suspend, withdraw, or prevent the ap- situation clear, if the amendment of the increased to 3 cents a pound, which would plication of the reduction, elimination, or

Senator from Ohio is adopted, most be a 50-percent increase. continuance of any existing duty or other

favored-nation treatment cannot be Chicory root would be increased from important restriction, or the continuance of

1 to 2 cents. any existing duty-free or excise treatment, continued to Yugoslavia? proclaimed in carrying out any trade agree

Mr. LAUSCHE. Or to any other Com Cherry juice would be increased from ment under this title or under section 350 munist country. That is correct.

17 cents a gallon to 70 cents a gallon. of the Tariff Act of 1930, to products, Mr. CURTIS. It applies to Yugosla For all practical purposes we would whether imported directly or indirectly, of via or to any other Communist country. make those items, and others, so comany country or area dominated or controlled Mr. FULBRIGHT. That is correct. petitive that the countries involved could by communism.

Mr. CURTIS. "Most-favored-nation not trade with us. The material which my amendment treatment" means that the recipient One of the larger items is willow bags would strike is set forth in italicized let- country of most-favored-nation treat- and baskets, on which the present tariff ters on page 81. That italicized lan- ment can receive the lowest tariff or have is 2242 percent. That percentage would guage gives the President discretion granted to it the lowest import restric- be increased to 50 percent if the amendunder certain circumstances to grant tions that are granted to any country in ment is adopted. favored-nation treatment, notwith- the world.

Tobacco is one of the larger items. standing the language contained in the Mr. LAUSCHE. The Senator is cor- The tariff would be increased from 1234 existing law. If the amendment were rect.

cents a pound to 35 cents a pound. In adopted, that italicized language would Mr. CURTIS. If a country should not that field there is competition with Turbe stricken, and the law as it is now receive the most-favored-nation treat- key and Greece, because the tobacco they written would continue in existence ment, it would operate under our ordi- produce is needed by manufacturers in The President would be required, as soon nary tariffs that are in existence.

our country to blend with our domestic as practicable, to suspend and remove Mr. LAUSCHE. That is correct. tobacco. favored-nation treatment from Commu Mr. CURTIS. If a country does not

I have in my hand a three-page letter, No Communist country have the benefit of most-favored-nation which I shall not read, from the Tobacco would be excepted. All countries would treatment, its goods are not necessarily Institute, in which a strong case is made come within the provisions of the law. barred from our country.

by the Tobacco Institute against the poThe difference between my amendment Mr. LAUSCHE. The Senator is cor- sition of the Senator from Ohio. The and the amendment upon which the rect.

Tobacco Institute wishes to retain the Senate last voted is that the preceding Mr. CURTIS. No additional penalties existing treatment of trade with Yugoamendment was primarily and com are imposed.

slavia for the benefit of our own tobacco pletely related to the Foreign Assistance Mr. LAUSCHE. That is correct.

manufacturers. Act. My amendment deals with the Mr. DOUGLAS. Mr. President, will I also have a similar communication Trade Expansion Act of 1962. the Senator yield?

from the largest beer manufacturer in

this country, Anheuser-Busch, which is which has been recommended by the Mr. LAUSCHE. First, I should like to located in St. Louis. They buy hops. committee is not agreed to, we shall be make a statement. According to that manufacturer, the shifting Yugoslavia more toward Mos By granting the most-favored-nation amendment would play “hops” with their cow and more away from the West. By treatment, we are helping to perpetuate business. It would disrupt their busi- following the procedure recommended by the Communist government in Yugoness.

the committee, there will be a chance to slavia. We are enabling that governMr. CURTIS. Mr. President, will the keep them moving more toward us. ment to compete with our workers, with Senator from Ohio yield so that I might Mr. FULBRIGHT. I believe that it our manufacturers. We are giving enask the Senator from Arkansas one fur- will have great political significance so couragement to socialized operations, ther brief question?

far as the future is concerned, not only through contributions made by the busiMr. LAUSCHE. I yield.

with respect to Yugoslavia, but also with nesses of the United States and the Mr. CURTIS. What is the date of the respect to

respect to all countries of Eastern workers in the United States. trade agreement with Yugoslavia, what Europe. They do not have such a posi Mr. SYMINGTON. Mr. President, was the territory called at the time the tion now, but I believe it is the policy

will the Senator yield? agreement was made, and what was its of all of us that it is to be hoped that

Mr. LAUSCHE. I yield. form of government?

sooner or later the relations of those Mr. SYMINGTON. We are the bankMr. FULBRIGHT. The original treaty countries with the Kremlin will be ers of freedom in Europe, the Middle was with Serbia in 1881, and the suc- loosened. If there is any way in which East, and the Far East; and if all our ceeding government includes Serbia, that can be accomplished, it is through allies are trading, to the extent that they which was the largest element in the the developing of some trade with them.

the developing of some trade with them. actually are trading—for example, Canarea. The new country succeeded to that Mr. MANSFIELD. How much of the ada, a half billion dollars of gold in the treaty, and it has been so treated since trade of Yugosalvia is now with the sale of wheat to Communist China; a Yugoslavia's creation. There has been West? I believe the figure is 70 per half billion dollars of gold for the sale no interruption in that relationship. cent.

of wheat to Russia-how can we conMr. CURTIS. But there has been no Mr. FULBRIGHT. The trade of tinue a situation where we continue the additional treaty?

Yugoslavia with the West is now be banking of the physical defenses of the Mr. FULBRIGHT. No.

tween 75 and 80 percent. Most of that free world unless we allow our private Mr. CURTIS. It is contended that the trade is with Western Europe. Our trade enterprise companies to trade with Tito government should have the most- with Yugoslavia is not great.

Communist countries on a basis at least favored-nations treatment by reason of Mr. MANSFIELD. That is correct. reasonably comparable to that of our a treaty made with Serbia in 1881 ? As I understand the situation, if Yugo- friends and allies? Mr. FULBRIGHT. The country has slavia is not given the most-favored-na

Mr. LAUSCHE. Frankly, I I have had the benefit of the agreement ali dur- tion treatment which is not a special

never subscribed to the philosophy or ing the period since. The agreement has privilege—the trade perhaps will change the principle that because somebody else never been abrogated.

to a formula of 30–70, going in the other does a thing which I believe is wrong I Mr. CURTIS. I know that that is the direction.

am justified in doing it. If we look at administrative finding of the State De

Mr. FULBRIGHT. Yugoslavia could the facts, since World War II we have partment. be forced into that position.

followed a policy of not giving aid in the Mr. FULBRIGHT. That is a fact.

We can look at the list of products in perpetuation of communism by dealing The treaty contains a provision that on volved, and the shift in the amount of with such countries. a year's notice it may be abrogated. But tariff which would be involved. They Mr. SYMINGTON. We are not talkthe question is not whether or not it can could not possibly compensate for that ing about aid now. We are talking about

business trade. be abrogated. There is no doubt that we tariff. could take such action. I am not argu

There are many other people who are Mr. LAUSCHE. We are talking about ing that this necessarily is a violation of interested. I did not wish to bore the dealing with them. a treaty. Senate by listing them all.

Mr. SYMINGTON. Yes. The next I only say that it involves a treaty.

Considering that such a large jump question I ask relates to our continuing

to lose a great deal of gold. Most peoThe question at issue is the wisdom of would be involved, it would be quite undoing this. I did not mean to leave the usual if Yugoslavia could sell anything, ple believe this loss of gold gives us an

increasingly serious problem, as our impression that in any case it would be under that kind of burden. illegal, or ultra vires, or anything else.

Mr. JAVITS. Mr. President, will the gold continues to diminish. As I reIt is a question of wisdom. Senator yield on that point?

member, the figures are some $3 billion Several Senators addressed the Chair.

Mr. FULBRIGHT. I yield.

for offshore military expenditures in the Mr. LAUSCHE. Mr. President, I have

Mr. JAVITS. The absolutely decisive banking of freedom, plus at least a bilthe floor.

argument against the amendment is that lion dollars in aid. This gives a net

the trade of Czechoslovakia, Bulgaria, unfavorable balance of $4 billion for There are other segments of our economy which take a position contrary to the Soviet Union. That is what we and Rumania is completely oriented to those two categories plus a tourism un

favorable balance of $212 billion. That the position taken by those who have would drive Yugoslavia into doing, if we

is some $6 billion-plus of an unfavorable written the letters received by the chair

were to take away the little inducement balance of trade to start with. If this man.

provided to keep some link with the West. unfavorable balance continues, we autoMr. MANSFIELD. Mr. President, will I can think of nothing which would be matically continue to lose gold. the Senator yield?

more disastrous in terms of holding onto If we do not permit our American priMr. LAUSCHE. I yield to the majority Central Europe and nothing which would vate businessmen to trade with these leader.

be more helpful to Khrushchev than countries, and our allies trade with them Mr. MANSFIELD. Mr. President, I driving Yugoslavia exactly where eco

to their hearts' content, I do not see wish to reinforce what the distinguished nomics has taken Czechoslovakia, Bul- how we can do other than increase this chairman of the committee [Mr. FUL- garia, and Rumania. Once driven there, serious unfavorable balance of payments. BRIGHT] and the distinguished Senator they will stay, because of the need for The latter, of course, cannot go on infrom Illinois [Mr. DOUGLAS] have said. parts and machinery and all other definitely, because our currency is exThis procedure does not extend a prefer- things. The umbilical cord cannot be pressed in gold and backed by gold. ential treatment. What has happened, cut, once the direction is changed.

Mr. LAUSCHE. I have read the artiin effect, is that a repository has been I hope very much that the Senate will cles which show that we are supposed to carried over from the time of the Austro- not make such a colossal blunder.

have a preponderance of exports over imHungarian Empire, in the latter part of Mr. SYMINGTON. Mr. President, ports—let us say from Yugoslavia. None the last century. The later repository will the Senator yield?

of the writers has pointed out that in was the Government of Serbia, for the Mr. FULBRIGHT. The Senator from

The Senator from calculating the total amount of our exGovernment of Yugoslavia. Ohio has the floor.

ports we do not include only the goods That really is not of great importance, Mr. SYMINGTON. Mr. President, sold for dollars but also include Public except politically. If this procedure will the Senator from Ohio yield to me? Law 480 sales as if dollars had come in.

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