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To illustrate what I have in mind, I I voted a moment ago in favor of the A few weeks ago, with the Interparliahave in my hand a letter of December 31, amendment by the Senator from Ohio

amendment by the Senator from Ohio mentary Delegation of the United States, 1962, in reply to questions I asked about which dealt with aid being given to Com I had the privilege of being in Yugoslavia Yugoslavia. This letter came from Fred- munist countries under the foreign-aid and having a conference with the offierick G. Dutton, Assistant Secretary of program. I voted against granting such cials that correspond with our Cabinet. State. It reads in part:

aid. I voted against it the two or three They made it clear that they did not I am pleased to furnish you with the addi- times it has come up in recent years. wish any more aid; that they were selftional information requested in your letter I commend the Senator for his amend sufficient in agricultural commodities; of December 17, 1962, addressed to Mr. Lee. ment.

that they were self-sufficient in other Of the $153.9 million of U.S. exports to Yugo

However, we must make a distinction aspects of their economy. We saw a slavia in 1961, the $80.9 million were for between the question of aid, whether it prosperous country filled with our prodPublic Law 480 shipments. This sum includ

ucts bought by their earnings from exed $64 million under title I and $16.5 million involves loans or grants under the forunder title III.

eign aid bill, and the question of normal ports to the United States.

commercial trade on a quid pro quo We were told they tremendously apSenators will not believe this, but we basis. We sell tobacco; we get back preciate purchases, under Export-Import have 312 billion

gold. We do not enter into the exchange Bank financing, of the new type of diesel Mr. AIKEN. Million?

unless we think it profits us to do so. locomotives that power their railroad Mr. LAUSCHE. Billion dinars; 312 Obviously, to the extent that we can systems. They have bought several milbillion.

promote exports, we are helping to ad lion dollars' worth of our transport Mr. SYMINGTON. The Senator will just the serious balance-of-payments equipment. They have bought factory agree, will he not, that if the amend- problem that the Senator from Missouri machinery. We saw U.S.-built computer ment is adopted this unfavorable bal- has referred to.

machines, which certainly are not the ance of payments can only increase?

Moreover, I think it should be pointed product of a suspect Communist orgaMr. LAUSCHE. No. I believe that if out that the export licenses required un nization, inside that Communist country. we wish to liberate the Yugoslav, der our laws, dealing with ordinary com Many of our large corporations have Hungarian, Polish, and Czechoslovak mercial trade, preventing the export of gone into that country and have been people from communism we must stop any kind of strategic material that licensed to do business there. giving aid to the governments, by which might contribute to the war power po The men with whom we talked reprethey perpetuate themselves.

tential, or any other material that might sented the equivalent of the Secretary Mr. SYMINGTON. This is trade, not strengthen the Yugoslav Communist of the Treasury, the head of their paraid.

regime, in any way that is considered to liament, and the head of their state deMr. LAUSCHE. I understand that be inimical to the interest of the United partment. They explained why it is this is trade.

States, remain

remain intact. Control over important to become a part of the most Mr. SYMINGTON. We are talking trading in strategic items remains un favored nation group, because they have about trade only. disturbed.

oriented 75 percent of their trade toward Mr. LAUSCHE. But trade is aid.

What the committee was trying to do the West, because they wanted to pay us Mr. SYMINGTON. I do not wish to was encourage normal trade with Yugo in dollars for our exports, and because belabor the point, but believe we must slavia in nonstrategic commodities, be they thought the products that they had consider the state of our own economy cause the committee felt strongly that bought from us were the best in the as of today. A great many of our this was in the national interest of the world. friends and allies are not only trading United States.

They said that had been so since they with the Russians, private business, but

Do we want Yugoslavia's trade oriented broke from the international trade pact at the same time are also trading toward the Western World, or do we with Communist Russia in 1958, and inheavily, for gold, with the Communist want it cemented in the Communist tended to continue that way, because Chinese. We have reached the point world? Do we want to encourage Tito's they liked to trade with the West. We today where we must borrow money regime to augment its independence, or asked why? The answer was that the from foreign countries in order to han

do we want to so root Yugoslavia's trade only way we could trade with the Soviets dle our foreign aid program, through inside the Communist countries so as to was to let them have the choice products the International Monetary Fund and leave it forever cemented within the they produced and that the Soviets through the sale of bonds to central Communist bloc?

needed, and the Yugoslavs would be ofbanks abroad. Under those circum

If we are to look at all of the Com fered surplus products that the Soviets stances, how can this economy continue munist lands as they are painted red on and their Communist neighbors had in to exist successfully if we not only use the map, we are conceding that the Com abundance, and for which the Yugoslavs more money in the aid program—and munist empire is going to remain intact, had no use. I heard the Senator say the other day and that we are going to deal with one Mr. President, this is the way to penehe did not think the aid program should monolithic entity forever more. But if trate the Iron Curtain. This is the way be cut below what it was the other

we are to deal realistically with the sit to show what freedom-loving America night—but also we do not allow our pri- uation and look at the differing national can produce and sell on the world marvate corporations to trade with these conditions that exist from one end of the

conditions that exist from one end of the ket, if we give it a chance. We have cut countries? While the private companies Communist empire to the other, then we out aid to Yugoslavia. We would be doof other countries trade freely. I think naturally should try to encourage the ing ourselves a great disservice, and dothis could guarantee economic catas- schism that is developing with respect

schism that is developing with respecting freedom a great disservice, if we said trophe.

to Yugoslavia and the rest of the Com we were going to have no trade with that Mr. LAUSCHE. Yes, but when we sell munist world. This is obviously in our country. We would force her to look to to those foreign countries, those coun- national interest.

the East and reject the West. Perhaps tries also sell products to us. I predict That is the reason why the committee the Government of Yugoslavia does not that at the 1964 Trade Conference, is trying to strike down the prohibition love us, but certainly the people of Yugowhich is to be held in Geneva, we shall which would prevent us from extending slavia do. They have many relatives in suffer a reversal that will be shocking, ordinary commercial relations to Yugo

ordinary commercial relations to Yugo- this country. They want to trade with because GATT will be ruined and Red slavia. The real question is whether we America and sell us shoes and their Russia will be wanting to sell to us and want to do this in our own interest, or carved woodenware. But, with the every other country will be wanting to in- whether we want to lead Mr. Tito into threat that this restriction is to be apvade our market.

Mr. Khrushchev's hands and glue him plied and they are not to receive the I yield now to the Senator from Idaho there forever?

favored nation treatment, this trade has [Mr. CHURCH).

Mr. MONRONEY. Mr. President, will

Mr. President, will already decreased by 25 percent. Mr. CHURCH. I wish to state my the Senator yield?

Mr. President, I think it is high time reasons for opposing the amendment. I Mr. LAUSCHE. I yield to the Senator to take an adult stance in world trade. think it is gentlemanly of the Senator from Oklahoma.

As was pointed out, an export license from Ohio to allow me to do so on his Mr. MONRONEY. I support the com cannot be obtained to export anything of time.

mittee with respect to this amendment. strategic value to such countries. Let us

be adult. The Red Kremlin does not give I do not know the name of the Com The reason I got into this colloquy us a free ride or a sanctuary anywhere munist who made the statement: originally with my good friend from Ohio in the world without seeking to pene

Borrow money, sell to them. See to it is that I am becoming increasingly wortrate our trade areas. It is high time we that it is repaid in zloties or dinars. Zloties, ried about the loss of U.S. gold, the were realistic. We have an opportunity cruzeiros, or dinars will become cheaper in steadily increasing unfavorable balance to establish our trade in this area, where value, and in that way you will pay off debts of payments against this country. a strong communist nation has main- with reduced zloties, cruzeiros, dinars, and

As I see it, the Senator's suggestion, in tained its independence from Russian other paper money.

his amendment, can only end in a serious trade treaties and the Russian military Mr. SYMINGTON. Mr. President, will

situation for American business. organization. I think it is high time to the Senator yield?

Mr. LAUSCHE. My final answer is extend to this country that which we ex Mr. LAUSCHE. I yield.

that the Senator was a member of the tend to almost every other nation except Mr. SYMINGTON. The Senator is Truman administration, and that adthe Communist-controlled countries that making statements which have to do ministration found that the granting of are a part of the Moscow conspiracy. I with the aid program. I am talking economic aid and the indulgence in busithink they ought to have a chance to buy trade and remind the Senator that West ness with Communist countries were American products and compete with the Germany, France, Britain, Canada, all inimicable to the security of our Nation. rest of the world on an even basis, to be the other countries in the free world are I have presented my case. given an opportunity to obtain dollars to operating their economies, in the main

Mr. AIKEN. Mr. President, will the buy goods from this country.

most successfully, under the nuclear Senator yield? Mr. LAUSCHE. The Senator from umbrella of the United States. If these

Mr. LAUSCHE. I yield. Oklahoma has presented very effectively countries, some of which now have

Mr. AIKEN. If the Senator's amendan argument that is applicable to what greater prosperity than we have, and ment should become law, and the cus

toms duties on Yugoslav products were the Communist countries, and especially certainly more prosperity than they ever Yugoslavia, want, but in December of had, continue to let their private com

raised 300 percent, would the American 1962, Tito went to Moscow. He con panies deal with countries behind the

consumer still be able to get Yugoslav ferred with Khrushchev. Khrushchev Iron Curtain, while our country in effect, products of the kind that we have been made statements. Tito made statements, furnishes them their

defenses, how does using? redeclaring the fidelity of Communist the Senator expect corporations in this

Mr. LAUSCHE. If the Yugoslav GovTito to the worldwide Communist cause. country to live, if we so stifle their chance ernment can sell at a price below ours,

Subsequently, Khrushchev went to for trade? Everyone who has been in we will still be able to buy Yugoslav Belgrade, and in Belgrade Tito and business knows that that last 10 per

goods, but we will not give them a special Khrushchev rededicated themselves to cent of volume obtained nearly always benefit in tariffs and duties.

Mr. AIKEN. The Senator means that the cause of communism. Khrushchev is the difference between making a profit went so far as to say to the Communists: or suffering a loss.

if the Yugoslav prices were lower than How can you argue that Tito is not a Com

Mr. LAUSCHE. Mr. President, the

the prices at which we could purchase munist? How can you say that, when prac- best way in which to insure the life of the articles from some other country, intically everything is socialized?

cluding the higher duty, we could bypass our companies is not to strengthen the

them. In Moscow and in Belgrade this reenemy who wants to destroy the very

Since Yugoslav business is 75

percent oriented to the West, the major declaration was made to destroy capital- business which we are praising and wish ism and our country. to help. There is only one purpose that

customers of Yugoslavia are West GerAll that Tito has to do is honestly the Communist countries have, and that many and Italy. Could we perhaps buy

Yugoslav products through West Gerreorient himself to the West, which has is to destroy the business we have. I am

many and Italy? done so much to help him—$2,500 million not one who is going to give them aid to

I

Mr. LAUSCHE. I suppose that might of our money has gone to Tito. Less destroy that which I want to preserve.

be done. I am not prepared to answer money, of course, has gone to Poland. reject absolutely and positively the prin

the Senator's question. The Senator Three hundred eighteen billion dinars ciple that because if someone has done

believes they could circumvent the rule are now in our possession. something, we should do it. That is

I am proposing to have adopted. Mr. SYMINGTON. What is a dinar erroneous. That is one of the weak

Mr. AIKEN. They have been doing nesses of what is happening in Congress; worth?

a pretty good job to date of buying Mr. LAUSCHE. That is an interest- should do it also. because someone has done something, we

American products, processing them, and ing question. The Senator's hair will

selling the end products to Communist

Mr. SYMINGTON. The Senator is stand up when I tell him. In 1955 when speaking ideologically—I am talking

countries. Is there any reason why they we initially began selling under Public about the health of the American econ

could not buy from Communist countries Law 480, the dinar was worth 300 to the

and resell to us, provided they could sell omy. dollar. The last transaction of which

at a little lower price than the American I have a record shows that the dinar was afraid the Senator was going to say

Mr. LAUSCHE. For a moment I was

consumer would have to pay if she worth 750 to the dollar. With a 750 to

bought directly and paid the higher idiotically. $1 dinar Yugoslavia is paying off the

tariff ? 300 dinar to $1 value of the 1955 debt.

Mr. SYMINGTON. No.

Mr. LAUSCHE. I suppose that is true. Our agreements provide for repayment in

Mr. LAUSCHE. No; I am only jesting.

Mr. AIKEN. I am beginning to wondinars. Most of the agreements provide

Mr. SYMINGTON. But if the Senator der for that.

carries his argument to conclusion, the Mr. LAUSCHE. The Senator has Mr. MONRONEY. On trade?

next development would be to demand brought up a thought that I think ought Mr. LAUSCHE. On Public Law 480 countries in the free world—the French,

that all the alliances we have with other to be explored; that is, Communist Yugotransactions.

countries in the free world—the French, slav aid to African and Asian countries. Mr. MONRONEY. We are talking should be broken off, unless they follow

West Germans, British, and Canadians But I am probably getting into a differabout trade.

ent subject. the Senator's recommended program. Mr. AIKEN. Yes. Mr. LAUSCHE. I am talking about That would apply to our relations with Public Law 480. That is included in our NATO itself, and would result in little

Mr. LAUSCHE. But Yugoslavia is trade.

getting material from us, and what it is organized free world resistance to comMr. MONRONEY. It is not included munism.

getting from us, it is sending, in part, to in the most-favored-nation trade.

India, Pakistan, the Far East, and Afri

Mr. LAUSCHE. That does not follow can countries. Mr. SYMINGTON. If the money is at all.

Mr. AIKEN. If the Senator's purpose scheduled to be used in that country,

Mr. SYMINGTON. In my opinion, the is to reduce the Yugoslav economy, we we receive less because of the automatic amendment of the Senator would make

would also have to apply those rules to inflation of the currency, assuming the it impossible for any American manufac the other countries that handle Yugoslav Senator's figures are correct, as I am sure turer to compete successfully with a Ca products and sell to the West. they are.

nadian or British or French or West Mr. LAUSCHE. I suppose one could Mr. LAUSCHE. Yes; they are correct. German manufacturer.

reach that conclusion.

Mr. KEATING. Mr. President, will Mr. KEATING. It is not so serious a Mr. DOUGLAS. Would export lithe Senator yield?

matter, with respect to actual practice. censes continue for those countries and Mr. LAUSCHE. I yield.

Mr. FULBRIGHT. It is the same for other countries inside the CommuMr. KEATING. I wish to ask a ques- principle, but not to the same degree. nist bloc? tion or two of the Senator from Ohio, or Mr. KEATING. It is just as serious Mr. MORSE. For strategic and comperhaps the chairman of the committee so far as the psychological effect is con batant goods. on a phase of the amendment which has cerned. I do not know to what extent Mr. FULBRIGHT. That is another not heretofore been discussed.

that information is known to the peo matter; but it is my information that As I understand, if the language which ple generally, but certainly the Commu they are required on the same kind of the committee has recommended is not nist government of Poland can be relied goods. But that is handled under the adopted, another country, namely, upon to put the United States in as bad Export Control Act, and this provision Poland, would also be adversely affected. a light as possible. I think it is not would not affect that situation.

Mr. LAUSCHE. It involves not only worth it, and I therefore feel that it is Mr. DOUGLAS. I understand. This Yugoslavia and Poland, but all Commu- unwise not to permit, under proper pro then would be trade primarily in connist countries.

tective provisions, such as are included sumer goods, not trade in capital goods Mr. KEATING. That is stated theo in the committee amendment, the ex or war materiel. Am I correct? retically in the language; but as a prac tension of this treatment in the case Mr. FULBRIGHT. The Senator is tical matter, does it not relate largely to of those countries. No other Communist correct. I have a list of all our imports. Yugoslavia and Poland?

countries are involved at the moment, I believe I also have a list of our exports. Mr. LAUSCHE. As a practical mat are they?

Mr. DOUGLAS. In the case of ter; yes.

Mr. FULBRIGHT. These are the only Poland, I think I can supply the chief Mr. KEATING. The Senator from two to which this principle has ever items of imports: Polish ham and Polish Arkansas has given some interesting fig- been extended since the war. I know of sausage. ures, showing that as a practical matter, no intention whatever on the part of Mr. FULBRIGHT. They are the pritrade with Yugoslavia will virtually be anyone to do it. However, I am in ac

mary ones; and that is why there is a cut off if we do not permit this relief. cord with the statement of the Senator difference in the relative effects of the Does the Senator have comparable fig. from Oklahoma [Mr. MONRONEY). Sup tariff. ures for Poland? The reason why I ask pose a situation developed in which the

Mr. President, in order that the recthe question is that I was in Poland last Hungarians or the Rumanians desired ord may be complete, I ask unanimous year. The Senator from Ohio knows to trade with us, and they made a good consent to have printed at this point in that I have no more use than the Senator proposal, one that was considered to be the RECORD a memorandum prepared by has for the regimes that control those in our interest. I would certainly say the committee staff, which contains the countries. But, after all, there is a great that we should develop that trade. But

material from which I have been quotreservoir of friendship and good feeling such a situation has not occurred.

ing. It is given in more detail and states among the people of this country toward Mr. KEATING. The language re the exact amount of the effects. the Polish people. Through the cen quires that the President must find that

I also ask unanimous consent to have turies the people of Poland have had to the trade would be in the national in

printed at this point in the RECORD a contend with foreign tyrannies imposed terest and would promote the independ- telegram I have received from four genupon them. Yet I am convinced that

ence of such country from domination tlemen of Polish extraction who are the the people of Poland retain their endur or control by international communism.

mayors of four American cities. ing love of liberty and their deep affection The President would report that deter

There being no objection, the memfor the people of the United States. mination to Congress, and if the Con orandum and telegram were ordered to That mutual good will is something gress believed he had made an incorrect

be printed in the RECORD, as follows: which I think is well to retain and to determination, I feel certain that there

U.S. TRADE WITH YUGOSLAVIA—POSSIBLE EFcherish. The people of Poland are not would be strong protests.

OF WITHDRAWAL OF MOST FAVORED Communists at heart and I would hate Mr. FULBRIGHT. The Senator is ab

NATION for their Communist government to be solutely correct.

Nature and extent of trade: Yugoslavia's able to say the United States has broken In the case of Poland, President Eisen

current patterns of trade

Western its historic ties of friendship with the hower made just such a finding in 1960. oriented In recent years more than 70 people of Poland. Do the figures indi When the Senator asked me about percent of its total trade has been with free cate, in the case of Poland, that the prac

In 1962 this figure had what could happen, I said that if such world countries. tical result would be the same as in conditions occurred in regard to one of

risen to 77 percent. The United States is Yugoslavia?

one of Yugoslavia's most important trading the other countries, I would follow the

partners. Mr. FULBRIGHT. It would be, with procedure the Senator has mentioned. I Trade between the United States and this variation: That there is a larger would hope that it would happen. I do Yugoslavia has traditionally been based on percentage of Polish exports to this not mean that I hope it would happen most-favored-nation treatment of the two country, exports on which there is no improvidently or speedily, but that there trading parties. Most-favored-nation benetariff. Those exports would not be af would be genuine reasons for doing so.

fits were mutually accorded each other by fected to quite the same degree.

the United States and the Kingdom of Serbia But those reasons have not developed However, from Poland, for example,

in a Treaty of Commerce and Navigation of yet.

1881 and this treaty has remained in effect we get bentwood furniture, on which

Mr. DOUGLAS. Mr. President, will

ever since between the United States and there would be an increase from 2512 to the Senator from Ohio yield?

the government at Belgrade whatever the 4212 percent; bristles from 2 to 3

Mr. LAUSCHE. I yield.

form of the latter. cents; calf hides, wet salted, from 4 to Mr. DOUGLAS. I wanted to ask a In 1962 the United States was a leading 10 percent; glass Christmas tree orna question of the chairman of the commit exporter to Yugoslavia and Yugoslavia's third ments, from 2512 to 60 percent and so tee.

largest market. The following table indiforth. The same is true of poppy seed

cates the recent pattern of United States

Mr. LAUSCHE. Mr. President, I yield and wicker baskets.

Yugoslav trade: the floor. Mr. KEATING. Can the Senator in Mr. DOUGLAS. I should like to ask

United States-Yugoslav trade form us the extent to which imports for confirmation or rebuttal of the point

[In millions of dollars] from Poland are not subject to duty which the Senator from Idaho (Mr. in the United States? CHURCH) and the Senator from Okla

1960 1961 1962 Mr. FULBRIGHT. The increase in home [Mr. MONRONEY] made; namely, tariff rates resulting from withdrawal whether export licenses would still be

U.S. exports (including U.S. aid
shipments).

85. 7 153.9 154.1 would affect more than $5 million of required on commodities which we would U.S. Imports (for consumption). 40.2 39.2 47.8 trade.

ship to Yugoslavia or Poland. Mr. `KEATING. Of a total of how Mr. FULBRIGHT. This particular much?

Effect on Yugoslavia of denial of most-faprovision has nothing whatever to do

vored-nation treatment: Denial of most-faMr. FULBRIGHT. Forty-five million with export licenses; it would not affect vored-nation treatment will have a severe dollars. them.

impact on Yugoslavia's trade and will con

FECTS

are

2, 340

sequently influence Yugoslavia's ability to claimants is about $25 million. Denial of caps imposed by the Government. There is pay off her debts to the United States. most-favored-nation to Yugoslavia is very no doubt that the Polish people who know Yugoslav payments to this country in 1963 likely to affect adversely Yugoslavia's dispo- are grateful for the aid the United States has will amount to an estimated $10 million. sition to reach a satisfactory settlement with extended to them. We suggest that AmeriAnnual payments to the United States dur the United States in regard to these claims can representatives in Poland be permitted ing the period 1964-67 are expected to be since Yugoslavia's ability to earn dollars in to apprise the people of Poland of the extent between $10 and $11 million on the basis trade with the United States will be most of U.S. aid in return for most-favored-nation of the amount of Yugoslavia's outstanding seriously jeopardized.

treatment. We were most impressed with the indebtedness as of December 31, 1962. Any Yugoslavia has developed a substantial tremendous amount of good will and good increase in total indebtedness since that date trade in products which enjoy the same re- feeling that the people of Poland harbor for would naturally increase the amount of duced tariffs as those of other friendly coun the people and the Government of the United Yugoslav payments.

tries. Denial of most-favored-nation now States. Also noteworthy in this connection are the means that rates on these products return We feel that every effort should be made to claims of U.S. nationals against Yugoslavia to the high tariffs established in the restric enhance United States-Polish relations and for the nationalization and other taking of tive Tariff Act of 1930. Of the total Yugo- to help the Polish people move toward property which have arisen subsequent to slav exports to the United States, more than greater freedom and independence. MostJuly 19, 1948, the date of the last claims 90 percent would be subject to an increase favored-nation tariff treatment for Poland settlement. Approximately 400 claims are in duty. Some of the principal products on is essential ingredient in such an effort. involved, and the amount claimed by the which the rates of duty will increase are:

Mayor JOHN E. BABIARZ,

Wilmington, Del.

Mayor VICTOR C. WARYASZ, Most-favored-nation rates of Higher duty Yugoslavia Imports 1962

Poughkeepsie, N.Y.
Description
duty now paid by Yugo will pay under 1930 Tariff (thousands

Mayor ALEX P. SMEKTA,
slavia
Act
of dollars)

Rochester, Minn.

Mayor CHESTER KOWAL,
Nails.

310 cent per pound..
410 cent per pound.

Buffalo, N.Y. Aluminum sheets and plates.

242 cents per pound.
7 cents per pound.

879 Aluminum rods and bars.

do.
_do.

288 Mr. DOUGLAS. Mr. President, will Furniture

1022 percent..

40 percent.-Hops.--1042 cents per pound. 24 cents per pound.

2,554 the Senator from Arkansas yield furLead pigs and bars.. 116 cents per pound. 218 cents per pound.

5, 731 ther? Sheep and lamb leather..

10 percent
25 percent..

448

The PRESIDING OFFICER Brass rods and bars...

2 cents per pound..
4 cents per pound.

(Mr.

527 Tobacco. 1234 cents per pound. 35 cents per pound.

4, 505

BREWSTER in the chair). Does the SenWillow bags and baskets.

2242 percent.--
50 percent.--

1, 622

ator from Arkansas yield to the Senator Zinc pigs and blocks..

0.7 cent per pound..
134 cents per pound.--

480 Barytes ore.

$2.55 per ton.
$4 per ton.

425 from Illinois?

Mr. FULBRIGHT. I yield.

Mr. DOUGLAS. Is it not true that Effect on United States of denial of most- Soviet domination. It would weaken those

there is a rigid embargo on the exportafavored-nation treatment: The effects of measures which can contribute ultimately to withdrawing most-favored-nation treatment the freedom of these people from the Com tion to the Communist-bloc countries of will hurt both Yugoslavia and ourselves. munist yoke.

machinery and materials which might First, our own sales to Yugoslavia will un By taking discretion away from the Presi- be, potentially, war materials? doubtedly be substantially cut, since Yugo- dent to grant most-favored-nation treatment Mr. FULBRIGHT. Yes. I am sure slavia's ability to earn dollars to pay for them section 231 deprives the U.S. Government of a the Senator from Illinois is referring to would be drastically reduced. A fourfold in tool in carrying out a positive policy toward

the Battle Act. crease over present rates of duty would price Eastern Europe. Retention of section 231

Mr. DOUGLAS. Yes. Would that Yugoslav goods completely out of the Amer works for the abandonment of the existing ican market, particularly since the same constructive policy of contact with the coun

act still apply? products from other countries would con tries of Eastern Europe and for its replace Mr. FULBRIGHT. Yes. This amendtinue to pay the lower rates of duty. In ment by a policy of withdrawal from the area. ment would not affect any of the applidirectly, the American worker, producer, and The effect of section 231 is to suggest that we cations of the Battle Act or the Export consumer would all suffer in some degree as are no longer interested in offering the coun Control Act. a result of this action. And, as previously tries of Eastern Europe an alternative to denoted, Yugoslávla's ability to repay its finan- pendence on the Soviets. Such a retreat from amendment; it would only restore the

There is nothing new about this cial obligations to the U.S. Government and to U.S. citizens would be impaired.

very time when diversity and assertions of status quo; and any requirements for exEffect on U.S. policy toward Eastern Eu independence and national interest are in- port licenses or any prohibitions would rope: The withdrawal of most-favored-na- creasing in Eastern Europe. When new op- still apply; the amendment would not tion treatment from Yugoslavia would do portunities for a policy of engagement in disturb them. serious damage to our relations with that Eastern Europe are opening up we would opt Mr. MANSFIELD. Mr. President, will country. It would require the denunciation for a negative and defeatist course. Our

the Senator from Arkansas yield to and abrogation of the treaty of 1881 which quarrel after all is not with the peoples

me? has been of fundamental significance in the of Yugoslavia and Poland but with comcharacter of our relations with the govern munism-an alien political system which

Mr. FULBRIGHT. I yield. ments at Belgrade since the treaty was con presently controls their governments. Cut

Mr. MANSFIELD. I point out that cluded. It would lead the Yugoslavs to re- ting off the President's authority to extend industrial goods of the type mentioned examine and revise their policy toward the most-favored-nation treatment only reduces by the Senator from Illinois do not go to United States and turn a more responsive our capacity to deal with Eastern European these countries, but go from the United ear to Moscow. It would discourage the pro- governments in ways that can benefit the states to Western Europe, and from Western elements in Yugoslav society and people and serve free world interests. injure ties with many of the Yugoslavs that

there, many of such goods go to the have been built up over the years. It would

WILMINGTON, DEL.,

satellite countries and to the Soviet diminish the opportunities to maintain and

November 4, 1963.

Union. Furthermore, the trade between increase the American presence and influence Hon. J. WILLIAM FULBRIGHT,

those countries of Western Europe and in that country. U.S. Senator,

the satellite countries and the Soviet The denial of most-favored-nation treat Washington, D.C.:

Union is in excess of $3 billion; but, so ment to Yugoslavia and Poland would have We urge your full support of proposed leg- far as the United States is concerned, its a larger effect than in each of these countries islation to assure the President discretionary export trade in such goods is less than alone. The impact would extend to Eastern power to grant most-favored-nation tariff

one-tenth of that amount. Europe generally, affecting our relations with treatment to Poland. We are four American the whole area and prejudicing the security mayors of Polish descent who have just re

Mr. FULBRIGHT. Yes. In short, we interests of the United States. To deny cently returned from extensive 3-week tour have been "holding the sack.” In my most-favored-nation treatment to these two of Poland. We went to Poland to see how the opinion, we really have been stupid in countries now would threaten the U.S. policy country is progressing, to compare adminis- preventing American concerns from parof more than a decade which has sought to tration of cities, to meet with the Polish peo- ticipating in this trade while all of our keep alive active relations with the peoples ple, and to visit the homes our parents left allies, particularly West Germany—and of Eastern Europe in economic, political, and when they came to the United States. We cultural fields. It would cripple our objec were impressed with the fact that the spirit this is one of the reasons why West Gertive to decrease the dependence of these of Polish unity and the great tradition of lan- many is so prosperous—and the other countries on the U.S.S.R. and to make it guage, art, and the church, that held the nations of Western Europe have been possible for a nation under a Communist Polish people together for over 1,000 years participating in this trade. So it seems government to achieve independence from still lives and flourishes despite great handi- to me it is time for us to stop that policy.

Mr. JAVITS. Mr. President, will the avoided it-I submitted the amendment 2-page letter; the summary there set
Senator from Arkansas yield to me? to the chairman of the Finance Commit- forth is as follows:
Mr. FULBRIGHT. I yield.
tee; and the Senator from Virginia [Mr.

Therefore, the amendment to section 231 Mr, JAVITS. I was appointed by the BYRD] submitted it to the Finance Com of the Trade Expansion Act of 1962, as procommittee to make a special inquiry into mittee, because of the origin of this mat- posed in section 402 of the Foreign Assistthis matter. I did so, and at the end of ter, and he did consider it.

ance Act of 1963, S. 1276, was approved by 1961, I wrote a report on this subject. I ask unanimous consent to have

the members of the Senate Committee on Western Europe has both export trade printed in the RECORD the letter I re

Finance and the Chairman directed to so

advise your committee. and import trade in excess of $5 billion ceived from the Senator from Virginia

With kindest regards, I am, with the Soviet bloc countries, whereas [Mr. BYRD], the chairman of the Finance Faithfully yours, according to the present figures, U.S. Committee. The letter is dated August

HARRY F. BYRD, firms do approximately $200 million 15, 1963.

Chairman. worth of such business.

There being no objection, the letter I believe that takes care of that point. Furthermore, in connection with that was ordered to be printed in the RECORD, Mr. MORSE. Mr. President, I shall research, consideration was also given to as follows:

be brief. the trade with Poland; and this brings

U.S. SENATE COMMITTEE ON FINANCE,

I shall support the committee language up an interesting psychological point.

August 15, 1963.

here, as I did in the committee. One As my colleague [Mr. KEATING] pointed Hon. J. W. FULBRIGHT,

of the chief reasons why I supported it out, they consider themselves written off, Chairman, Committee on Foreign Relations, insofar as Gomulko is concerned and in

U.S. Senate, Washington, D.C.

in the committee was the action taken

DEAR MR. CHAIRMAN: On June 20, 1963, at sofar as Yugoslavia's alleged independ

by the Finance Committee and the letter

from the chairman of the committee, ence is concerned. What an awful price the request

of several members of the comto pay.

mittee on Finance, I wrote you concerning the Senator from Virginia [Mr. BYRD). The Senate has felt free to adopt vari

section 402 of the Foreign Assistance Act of As I recall, we were then told that that

1963, S. 1276, which would amend section 231 action by the committee was unanimous. ous amendments to the foreign aid au- of the Trade Expansion Act of 1962, by per Mr. FULBRIGHT. The letter does thorization bill, and those amendments mitting the President, if he so determines, to not so state, but I was present. I sent are supported by many reasons which extend most-favored-nation treatment to have accumulated over the years. How- Yugoslavia and Poland. I pointed out that letters to the Senator from Virginia, and ever, this item has nothing to do with legislation amending the Trade Expansion he invited me there; and, as I recall, all Act of 1962 is under the jurisdiction of the

those present were unanimous. At foreign aid; it merely happens to be before the Senate because this loose end Committee on Finance, and, therefore, re- least, I heard no objection—although I

quested that the Committee on Foreign Re did not hear any poll taken of the memneeds to be tied up.

lations refrain from taking any action with bers. Our action in this connection is most respect to this particular section of S. 1276.

Mr. HARTKE. Mr. President, will the important, because we could make a fatal On June 26, 1963, you replied by suggest- Senator from Oregon yield? mistake-one which the President is ing that was in the case of matters which

Mr. MORSE. I yield. striving to avoid, and one which could may involve the jurisdiction of both our greatly damage us irretrievably, because

committees, the Finance Committee consider Mr. HARTKE. I thank the distinthen Khrushchey would realize that we

the matter from the standpoint of its juris- guished Senator from Oregon for yield

diction and advise the Committee on For- ing. were so stupid as to deny ourselves any

eign Relations its views.” chance of dislodging the Communist con

Mr. President, I am a member of the

In executive session today, I called this trol of these countries.

Finance Committee. For the record, I question up for consideration. After a thorMr. FULBRIGHT. I agree with the ough discussion, it was agreed that the pro- state that I did not support the commitSenator from New York. posed amendment was not inconsistent with

tee on this proposal, and I do not supMr. President, I ask unanimous con- the action taken by the Senate Committee port it now. sent to have printed in the RECORD a

on Finance on section 231 of the Trade Ex I am opposed to giving these countable showing the value of U.S. exports pansion Act of 1962, as described in the fol- tries any special consideration. At the of domestic and foreign merchandise to

lowing excerpt from the Senate Report No. time, I was told there was a favorable Poland in the calendar year 1962.

balance of trade with them. There is,

"CHAPTER 4-NATIONAL SECURITY There being no objection, the table

when we consider the public programs, was ordered to be printed in the RECORD, countries or areas:

"Section 231. Products of Communist such as those under Public Law 480 and

the development loan funds. But if as follows:

“Section 231 provides that, as an exception we take the Government-sponsored funds Value of U.S. exports of domestic and foreign to the most-favored-nation principle, the from the trade balance, there is no favormerchandise to Poland in calendar 1962 President shall, as soon as practicable, re- able balance of trade; in fact, in that [Thousands of dollars)

frain from applying any reduction, eliminaCommodity groups:

event we run about $15 million short. Value

tion, or continuance of any existing duty or
other import restrictions, or the continuance

There is no question that this country 00 Animals and products, edi

of any existing duty-free or excise treatment is Communist controlled and is competble----

8

proclaimed in carrying out any trade agree- ing with our labor, by reason of the ab0 Animals and products, inedi

ment under title II of the bill or under sec sence of controls upon its prices or its ble----

4, 410

tion 350 of the Tariff Act of 1930 to products, labor scales. It sets the price, and then 1 Vegetable products, edible--- 47, 332

whether imported directly or indirectly, of 2 Vegetable products, inedible. 6, 723

the Soviet Union, Communist China, and any ships the goods to the United States, 3 Textile fiber and manufac

other country or area dominated or con- where they compete against goods protures.--

21, 942

trolled by the foreign government or foreign duced by Americans. 4 Wood and paper--

44

organization controlling the world Commu I would not mind that in the case of a 5 Nonmetallic minerals-----

483

nist movement. It is contemplated that this country which was one of our allies; but 6 Metals and metal manufac

provision will permit the President, if he so I do not know whether these people are tures.--

1, 085

determines, to continue most-favored-nation 7 Machinery and vehicles.---- 3,000

allies of ours or not. I have seen them treatment to Yugoslavia and Poland.” 8 Chemicals and related prod

take foreign trade from us in the AfriTherefore, the amendment to section 231 ucts----1, 067

can nations, and at the same time spread of the Trade Expansion Act of 1962, as pro9 Miscellaneous.

8, 311
posed in section 402 of the Foreign Assistance

their philosophy and the notion that Act of 1963, S. 1276, was approved by the their system is the best, and use their Total ---

94, 405

members of the Senate Committee on Fi technical people to try to teach the peoSource: “U.S. Exports of Domestic and nance and the chairman directed to so ad ple of Africa to go the Communist way Foreign Merchandise,” 1962 annual, FT 420, vise your committee.

of life, when we are supposed to be givU.S. Department of Commerce.

With kindest regards, I am,

ing them special consideration. Mr. FULBRIGHT. Mr. President, in

Faithfully yours,

I have no sympathy for them. I have connection with the other point the Sen

HARRY F. BYRD,

supported the foreign aid bills through ator has mentioned, in order to avoid any

Chairman.

the years, and I intend to do so this time; conflict of jurisdiction or any question Mr. FULBRIGHT. Mr. President, I but in all good conscience I can see no about this matter-and I think I have shall read only the last sentence of this connection or similarity between the sit

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