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$141.8 million to Japan, for a total of
Fiscal year 1963—Continued
as well as grants. As I have pointed out, $578.1 million. The breakdown is as
we are making loans to nations of Westfollows:
Amount ern Europe for military purposes. There
$10.8 is nothing in the committee bill that
None would put a stop to that practice. Country:
Those nations are capable of financAustria
ing their own military commitments. 18.8 European regional.-Belgium-Luxembourg
Furthermore, I believe our loans should Denmark.-
The funds listed here for BelgiumFrance--41. 0
go to other parts of the world, where Luxembourg, Denmark, France, NetherFinland---0
they are most sorely needed. That is lands, and the United Kingdom are virGermany2. 2
why I am a strong supporter of increasIceland
ing our loans on a specific project basis Ireland -
$72 million of her aid is military. They to Latin America, to name one area. Italy----105.3 are able to support themselves. If they
The third thing Congress must do is Netherlands. 14.8 wish to buy from us, I do not seek to
direct the President to revise downward Norway-prevent that, but I do not believe we
our existing commitments to these counPoland..
should give them aid money. Sweden. 0
tries. There are some who feel that my I predict that unless Congress does language goes too far in that direction, United Kingdom--
three things in this area, the figures for Japan.----141.8
and I am perfectly willing to listen to European regional----
suggestions for its revision. But if there turn out to be almost the same as for The figures I am using are for all forms fiscal 1963. The three things we must continue to flow into Western European
is not some renegotiation, the grants will of aid. They include food for peace,
do are to specify the countries that are Export-Import Bank loans, and other not to receive any more aid, extend the
nations, and perhaps into Japan, as well. forms of aid that are not covered in the ban to loan aid, and direct a downward left up to our administrators, my an
If I should be told all this should be Foreign Assistance Act. It is also true revision of our existing commitments. that my amendment, banning further aid My amendment does the first by direct
swer would be that we have waited for to them under the Foreign Assistance ing that no further aid is to go to the list
several years for the AID administraAct, would not affect the food-for-peace of nations found by the United Nations They have not done so, and I can only
tors to turn off this particular spigot. program, not Export-Import operations. to be economically developed. As I have But the great bulk of this money is already said, these are Australia, Austria, reach the conclusion that they never will
. still under the foreign aid program now Belgium, Byelorussian Soviet Socialist
My second response is to take a look at under consideration. More specifically, Republic, Canada, Czechoslovakia, Den
what new plans are being pressed right the great bulk of it is in the form of mark, Finland, France, Hungary, Ice
now in the Departments of State and military aid, and most of that is grant land, Ireland, Italy, Japan, Luxembourg, Defense for Western Europe. After the aid. But not all. We are also making Netherlands, New Zealand, Norway, Po- ugly experience we have had in trying loans for military assistance that would land, Rumania, South Africa, Sweden, without success to get our NATO partnot be affected by the language in the Ukrainian Soviet Socialist Republic, the
ners to meet their commitments, after committee bill.
the continuation of military aid to them Union of Soviet Socialist Republics, the I also point out that throughout the United Kingdom, and the United States. long after they were able to pay their fiscal years since 1960, we have been To this list I have added the Federal Re
own way, the American policymakers desending aid, so we are told, “to carry out public of Germany and Switzerland,
cided we should embark on a whole new previous commitments.” In a moment, I which are not members of the United NATO program for which the United shall discuss the aid figures for fiscal Nations.
States would pay 40 percent. 1963, and it will become evident that
Unless we are specific, the Pentagon
This was the proposal for the NATO these previous commitments are appar- and our AID administrators will con
surface fleet. This was not a proposal ently indefinite. Unless we direct the tinue to find justification for these pro
that was initiated among our allies. It President to renegotiate and revise down grams. The committee language does, was not something we decided to go ward our “previous commitments,” we after all, leave it up to the President, along with reluctantly. To the contrary, will not be able to terminate our aid to which is another way of saying it is up
it was our own idea. It was our idea that Western Europe as the committee ob- to the administrators of the program,
if the alliance began to look a little viously desires to do. to determine what countries are econom
shaky, it could always be repaired with I call attention to the aid figures for ically developed and able to finance their American money. fiscal 1963 as they affect these countries.
own defenses. You will inevitably find So we proposed a nuclear fleet for They show that little, if any, improve- that when the Pentagon is anxious to which we would pay 40 percent. We ment was made over the previous year.
have a country engage in some military have tried to sell this plan to NATO. The total for Western Europe was $705.7 activity that it is reluctant to finance We have, to put it another way, tried to million, with another $172.9 million for itself, there will be a finding that the persuade our NATO Allies to let the Japan. That is a total of $878.6 million. said country is unable to finance its de- United States pay for much more than The substantial increase over the pre- fense.
our share of a new nuclear force which vious year is due in part to large loans Therefore, I believe it is important that would belong to the alliance. We want to Austria, Italy, and Japan from the we name these countries.
them to allow us, to permit us, to do this Export-Import Bank, which would not The language added by the committee for them. be affected by my amendment. But the says that "no assistance shall be fur That approach, and that attitude, has military aid programs showed little dif- nished on a grant basis under this Act characterized our whole NATO policy ference from the previous year, and in to any economically developed nation ever since we first sent troops to Europe many cases were higher than in 1962.
capable of sustaining its own defense in large numbers in the early 1950's. It The breakdown is as follows:
burden and economic growth,” and then is why I have no confidence at all that Fiscal year 1963
it makes two further exceptions, one for financial and military aid to them will [In millions)
commitments entered into before July 1, stop unless Congress itself stops it. Amount
1963, and orientation and training ex In some respects, our allies have used Austria---
$31.4 penses for military purposes up to $1 mil- better judgment themselves. Last FriBelgium-Luxembourg
day morning's New York Times pubDenmark-
24.0 We must not leave any room for doubt lished the story that the Military ComFinland---
as to what countries we mean when we mittee of the NATO Parliamentary ConFrance
say nations capable of sustaining their ference has recommended against the Germany
own defense burdens and economic nuclear surface fleet. It rightly called
growth. My amendment leaves no room None
it military superfluity and therefore a Italy----300.7 for doubt.
16.4 The second thing we must do is to ex I surely welcome this indication that Norway
38.7 tend the ban on further aid to loans, the American taxpayers may not, after
all, get stuck for another multibillion, the time the President made his state
the time the President made his state- to Communist countries for cash, indollar outlay representing the American ment on radio and television about the volve a switch in our American foreign share of what Great Britain, France, wheat sale.
policy, because they provide, instead of Norway, Denmark, Belgium, and the I was not alone in this understanding a policy of trying to restrict export of Netherlands should be doing for the alli of the proposal made by President Ken- supplies to strengthen Communist ance. I believe the 40-percent proposed nedy, because I hold in my hand the countries, one of actually encouraging payment is outrageous.
November 1963, Washington newsletter, shipment of supplies to strengthen the Apparently they have saved us from No. 242, issued by the Friends Commit- Communist countries so as to give them that fate, when our own policymakers tee on National Legislation in which the extra weapons, extra power, extra energy were determined to go ahead with it. organization comments with some cau- enabling them to continue to intimidate
This is why I believe my amendment tion, but with commendation on the de- the neutral countries of the world and is necessary if Congress is to see the cision to sell wheat to the Communist countries of the free world, in order to termination of U.S. aid to these coun countries. However, it also appears to compel the continuation of the necessary tries.
be laboring under a misapprehension appropriation of moneys such as we are Mr. President, I rest my case at this about the manner in which it is now
about the manner in which it is now called upon to authorize today in the point on my amendment. I hope if the proposed to finance these sales to the foreign aid bill. discussion which will take place on the Communist bloc countries.
It would be bad enough if the adminisfloor or in the cloakrooms in the next
I quote from the Friends newsletter: tration were to undertake this action hour or so results in adjustments to this
In order to avoid legislative restrictions even on sales for Communist gold by amendment that Senators believe should and rally public support, the President has Executive decree without consultation be made, we can at the same time pro- specified that the sales would be (1) made
specified that the sales would be (1) made with Congress. However, when, instead tect its objective. I believe this is the through private dealers, (2) for dollars or of that, we are now told that these sales time when we should say that American gold
are to be made for credit, instead of aid money should no longer go to self
I repeat the second category, Mr. cash or gold, that is something quite sufficient NATO countries, but should go
President, because we heard much about different. When we are now told that to the truly underdeveloped areas of the
that when we were discussing the wheat the credit risk is being underwritten by world where it is so important to us, on sale
the Export-Import Bank, which is fia project-to-project basis, to be of help
nanced exclusively by American funds, I (2) for dollars or gold; (3) for cash or shortto governments willing to help them
believe that we confront a situation term credit; (4) not diverted to Communist selves.
China or Cuba, and (5) carried in available which is utterly indefensible.
I point out another statement in the The PRESIDING OFFICER. The other countries. This last requirement is Washington Post article: question is on agreeing to the amend still being modified because of the high level Actually, it is customary for the Exportment of the Senator from Oregon (Mr. of U.S. shipping rates.
Import Bank, a Government agency, to guarMORSE] to the committee amendment, In view of the general understanding tended by private commercial banks on sale
antee one-half of the short-term credit exin the nature of a substitute, on page 47, involved in the Presidential announce
of big shipments of American goods abroad. lines 15 to 21. ment that we were about to start selling
The agency's chief purpose is to promote Mr. FULBRIGHT. Mr. President, I grain to Communist countries, I was un- foreign sale of American products. suggest the absence of a quorum.
derstandably shocked to read in the Departing from its usual 50-50 practice The PRESIDING OFFICER. The Washington Post for November 5 an
the Export-Import Bank has agreed to guarclerk will call the roll.
antee allarticle under the byline of Vincent J. The legislative clerk proceeded to call Burke, under the heading “Government Let me repeat that, because I want the roll.
Will Underwrite Credit Risk in Sale to Senators and the country generally to Mr. FULBRIGHT. Mr. President, I Hungary.”
understand what we are confronted with ask unanimous consent that further pro I read a portion of that news release: in this situation ceedings under the quorum call be sus
The Federal Government has decided to Departing from its usual 50-50 practice, pended.
underwrite all the credit risks for American the Export-Import Bank has agreed to guarThe PRESIDING OFFICER. With
banks engaged in financing sale of $6 million antee all-
It is expected that similar credit guaran
all the short-term credit extended by banks
to finance the sale of corn to Hungary. amazed to read in the Washington Post million sale of wheat to the Soviet Union. I ask unanimous consent that the enfor Tuesday, November 5, a story that the U.S.
tire article be printed in the RECORD at U.S. Government, through the I call that to the attention of the Sen
this point. medium of the Export-Import Bank, will ate because we now have opportunity to
There being no objection, the article underwrite the credit risk involved in do something about the complete switch the recent sale of corn to Communist in the understanding of the people of was ordered to be printed in the RECORD,
as follows: Hungary. This story states that the this country that this sale was to be Federal Government has decided to un made for cash to what now appears to be GOVERNMENT WILL UNDERWRITE CREDIT RISK
IN SALE TO HUNGARY derwrite all the credit risks for American a program to have the American people
(By Vincent J. Burke) banks engaged in financing the sale of underwrite all the bad debts the Commu$6 million worth of surplus U.S. corn to nists may accumulate in connection with underwrite all the credit risks for American
The Federal Government has decided to Hungary, which, of course, is a member the sale.
banks engaged in financing sale of $6 million of the Communist bloc. It was my un
I read this rather startling announce
worth of surplus U.S. corn to Communist derstanding that at the time the Presi ment because it is pertinent to an
an Hungary. dent made the announcement that this amendment I propose to offer to the for It is expected that similar credit guaranGovernment would approve applications eign aid bill. It is expected that similar tee will be extended to the pending $250for licenses for private corporations to guarantees will be extended for the $250 million sale of wheat to the Soviet Union. negotiate sales of wheat and other grains million wheat sale to the Soviet Union.
When and if that happens, informed sources to the Soviets and their satellites, he im I quote again from Mr. Burke's article licans is preparing to attack the Kennedy
said yesterday, a group of House Repubplied that the carrying out of these nego in the Washington Post of November 5:
administration's handling of the sale. tiations would be through private chan In announcing a month ago that the Gov In announcing a month ago that the Govnels, with the grain trade negotiating ernment would permit the sale of wheat to ernment would permit the sale of wheat to the sales and the sales being consum the [Soviet] Union, President Kennedy said the Union, President Kennedy said it would mated for cash or gold or short term it would be sold by private dealers for Amer be sold "by private dealers for American credit extended through private chan- ican dollars or gold, either cash on delivery
ican dollars or gold, either cash on delivery dollars or gold, either cash on delivery or nels. There was no indication that the or normal commercial terms.
normal commercial terms." American taxpayer would be called upon If that were all that were involved, it Import Bank, a Government agency, to guar
Actually, it is customary for the Exportto underwrite the credit risk involved in would be bad enough.
would be bad enough. I submit that antee one-half of the short-term credit exexport sales to Communist countries, at sales of this type, even if they were made tended by private commercial banks on sale
of big shipments of American goods abroad.
we are now selling American surplus Mr. FULBRIGHT. I do not underThe agency's chief purpose is to promote grains to the Communists at a cheaper stand what the Senator means by conforeign sale of American products.
delivered price than that at which we Departing from its usual 50–50 practice,
cessions. Whenever a foreign country the Export-Import Bank has agreed to guar" are selling it to our friends in the free pays cash for a commodity, it usually antee all the short-term credit extended by world.
world. We have established a practice- purchases the transportation at the lowbanks to finance the sale of corn to Hungary. properly so—that our exports to those est price it can get. Is that not the com
This was done after the commercial banks countries are to be carried in American mon practice? refused to take the risks required under the bottoms, in American ships whose crews Mr. MUNDT. Of course. agency's normal practice.
receive American wage scales. That is Mr. FULBRIGHT. Where is there any Also yesterday, the Commerce Department appropriate. Now we are selling grain concession? granted a license for the shipment of about $1 million worth of corn to Hungary—the
to the Communists at the world price, Mr. MUNDT. It is also common pracsixth such license granted since October 23. which is the price that we also use in tice for them to provide their own de
The license permits the shipment of selling grains to friendly countries; but livery, or we deliver it at our standard, 600,000 bushels of yellow corn, valued at when we sell grains to friendly countries, acceptable American fees. $1,031,000.
and ship them in American bottoms, the Mr. FULBRIGHT. Does the Senator Mr. MUNDT. Mr. President, at a cost to the recipient is greater than believe that they could not hire a ship time when we are discussing whether we what we are charging the Communists, flying the Liberian flag? should authorize $3 billion, $4 billion, or because they get shipping at reduced Mr. MUNDT. If they did that, that
would be their own delivery. even $5 billion of foreign aid money to negotiated rates. strengthen the mutual capacity of coun
Mr. FULBRIGHT. Mr. President, will Mr. FULBRIGHT. Their own delivery. tries in the free world to resist the conthe Senator yield?
The Senator does not mean that it must tinuing encroachments of communism,
Mr. MUNDT. I yield.
be a West German flag ship? I ask my colleagues seriously whether
Mr. FULBRIGHT. I am curious about Mr. MUNDT. Whatever arrangement we want to place the American taxpayer the last statement the Senator has made. they make would constitute their own in a position where, with his dollars, we Does he have reference to sales under delivery system. propose to guarantee all of the credits the authority of the AID bill, or com Mr. FULBRIGHT. What is the conthat the Communists utilize in buying mercial practice?
clusion the Senator is drawing? from us the supplies they need to Mr. MUNDT. I have reference to the Mr. MUNDT. We have not offered to strengthen the capacity of the Commu fact that we have sold, from Commodity deliver the products in Americans ships nists to threaten the portion of the world Credit Corporation stocks, at world at the reduced price that we are offering which we are seeking in this pending prices, to Germany and other friendly to the Communists. bill to protect.
countries, grains which we delivered to Mr. FULBRIGHT. The price is still I ask unanimous consent that there them in American bottoms. Now we are higher than the going price for nonmay be printed in the RECORD at this selling grains to the Communists and American ships. Is that correct?
Mr. MUNDT. It could well be. point the text of the amendment which delivering them in American bottoms at
Mr. FULBRIGHT. The newspaper arI have sent to the desk, and which I shall lower delivered prices. offer in due course, and on which I shall
Mr. FULBRIGHT. Let me get this ticle points that out.
Mr. MUNDT. We are offering preferask Senators to express their opinion as point clear. Does the Senator mean to what they think of this kind of prac
that West Germany has bought Ameri- ential treatment to the Soviet Union and tice, in a yea-and-nay vote.
can products and paid the world price to Hungary giving them the status of There being no objection, the text of plus the American shipping price, which most favored nations, because we have the amendment was ordered to be print
is substantially above the going price for offered to them a delivery system. I do ed in the RECORD, as follows: shipping? Is that a fact?
not know who takes the loss—whether it On page 54, after line 4, insert the follow- unless they have been able to carry the Mr. MUNDT. They have done that, be the shipper or the seamen.
Mr. FULBRIGHT. I submit that that ing: "SEC. 404. Neither the Export-Import Bank products in their own bottoms.
is a distortion of the facts, because what nor any other agency of the Government Mr. FULBRIGHT. Without any ifs, they want to do is ship it in ships they shall guarantee the payment of any obliga- ands, or buts, have they actually done can hire at a lower price than what we tion heretofore or hereafter incurred by any it?
are offering them. Communist country (as defined in section Mr. MUNDT. They have not been Mr. MUNDT. Not American ships, 620 (f) of the Foreign Assistance Act of getting it at the discounted American though. 1961) or any agency or national thereof, or delivered price in American bottoms. in any other way participate in the extension
Mr. FULBRIGHT. No, ships that will of credit to any such country, agency, or na
Mr. FULBRIGHT. Have they paid a carry it more cheaply. tional, in connection with the purchase of premium price for it?
Mr. MUNDT. Can the Senator name grain or any product thereof by such country, Mr. MUNDT. They paid the same any country which has purchased suragency, or national."
price that the Communists are paying, plus American wheat from the ComMr. MUNDT. Mr. President, I believe the world price, but they have the prob- modity Credit Corporation when we have the decision to approve such sales of lem of having the grain shipped to a offered to deliver it in American ships grain to the Soviets is wrong since while friendly country.
at a lower rate than the prevailing rate? we are working on legislation here today Mr. FULBRIGHT. Does the Senator We are speaking now of a commercial to make funds available for programs to know of an instance in which the West practice. build up the economy and the muscle Germans have used American bottoms Mr. FULBRIGHT. This policy would of the free world, the White House and when any other bottoms were available? require shipment in American ships at the State Department, without any "ad Mr. MUNDT. I know of the fact that higher prices. The way the newspapers vice and consent” of the Senate, are tak- they either have used American bottoms report the deal, other countries will not ing action to alleviate and correct mis and paid American prices, or have ship in non-American ships at prices takes in the administration of their econ- shipped the products in other bottoms. even lower than negotiated prices. omy by the Communists and their satel. We have not given to them the conces Mr. MUNDT. We are not sure what lites,
sion that we are giving to the Russians, the new rates will be. I have never seen I must confess that this decision has at a negotiated price downward.
them published. I have been told they been made, not by Congress, but by Sen Mr. FULBRIGHT. I have always con were negotiated sharply downward. ators or Representatives, but by execu- sidered the Germans to be pretty good Mr. FULBRIGHT. I read in the press tive decree, in spite of the clear-cut traders. I have never heard of them that the prevailing price as of the date understanding that sales were to be paying a premium above the world price. of the article, which was published last made for cash or short-term credit, and Mr. MUNDT. Yes; they are good week, in non-American ships is close to also with the understanding that it traders, and they also are considered $13 a ton delivered to Black Sea ports; was to be shipped mainly in American good friends of ours. In no instance have while the going price in American ships bottoms. I do not know what our free we offered them the identical shipping is $23. There has been talk of trying to world friends think about a proposal concessions that we are offering to the reduce the rate in American ships to $18, that has now become a fact, whereby Communists.
but that would still be substantially
above the rates in non-American ships. published in the October 31 issue of the world, it is only in those instances where Certainly it is not a privilege to allow Paris edition of the New York Herald Trib
it helps the propagandists of this adthe buyer to pay $5 or $6 a ton more than une. It said in part:
ministration that we are asked to "advise the going rate.
“When Governor Averell Harriman was in Moscow, Nikita S. Khrushchev twice as
and consent." Congress was not-and Mr. MUNDT. It is certainly a privi- sured him that all Russian troops would
I repeat, not-asked to express its lege if the recipient country is in a posi- eventually be brought home from Cuba.
thoughts in any form on the approval of tion in which it needs to use American “Why should we keep them there?' Khru the sale of wheat to Russia and the Comships.
shchev asked, and added that the men of munist bloc nations. Mr. FULBRIGHT. But they do not the Red army did not like being there either
Mr. President, to compound even furwant to carry it in American ships. This because of the steamy Cuban climate.”
ther the seeming contempt for an exis not a privilege they are seeking.
The interesting thing about this dis- pression of Congress on the wheat sale Mr. MUNDT. They are getting the patch is that the Kremlin seems to be approval, the administration has now benefit, however, of the fact that we are reverting to type and is now saying it made a decision to use the dollars of giving Communist countries a specific did not say what most observers said
did not say what most observers said American taxpayers to guarantee Amerirate reduction,
it did say some time ago. The merry can banks extending credit for these sales Mr. FULBRIGHT. I am not interested go-round goes round and round, and we so that if the Russians or any of their in whether they use American ships or are still dealing with Communist oper satellites default on their payments on not. I merely thought the facts as to the ations.
credit extended, the Export-Import actual situation should be fairly stated. Mr. MUNDT. It seems to me that that Bank, which is financed wholly by Amer
Mr. MUNDT. I think the facts will statement emphasizes at least the fact ican dollars, will reimburse these private all be better clarified when we get from that we received no quid pro quo from banking institutions suffering losses. the administration a specific statement, the Communists in turn for our willing In no other instance according to the first, as to what will be the new special ness to bail out Soviet Russia from the Washington Post report does the Exrate to Communist countries, and second, serious problems that confront them, be port-Import Bank go that far. We who will absorb the difference. Will the cause of their failure to be able to estab would grant to the Communists by this American shipping companies make a lish a collectivist farm program and decision a consideration we deny other smaller profit, or will the men who work make it successful.
countries, anywhere in the world. This on the ships receive a smaller wage? Or It would appear that the spirit of is another instance of most-favored-naare we going to shuffle off the difference Moscow is reverting to the spirit of Mos tion treatment; and to me, for some inon the American taxpayer in the form of cow B.D.S.-before the death of Stalin explicable reason, the "most favored nasome new kind of subsidy? There are
There are because I saw none of this fine, con tion” is to be one in the Communist bloc, facts we all want to have in that con- ciliatory aspect in what the Senator has instead of one of our allies or our friends. nection.
read, and which we sometimes read in It is proposed that our Government However, the main burden of my re- language that is uttered by Khrushchev. guarantee the full payment of the loans. marks this afternoon, and the sole pur Mr. HICKENLOOPER. Would the What a strange departure from the origpose of the amendment which I have of- Senator say that the spirit of Moscow inal White House statement, which was fered, deals with the question of whether, should more properly be called the
should more properly be called the that we were to be paid in gold or in in the credit involved, we want to compel specter of Moscow?
cash or in short-term credits. But Unthe American taxpayer to underwrite Mr. MUNDT. I think that would be cle Sam, not the private lending instiany bad debts which might eventuate. much more appropriate.
tutions, is to take the risk of these sales. Mr. HICKENLOOPER. Mr. President, Mr. President, I continue with the The private lenders, however, instead of will the Senator from South Dakota point I am trying to make about the im Uncle Sam, will make the profit on yield?
port of the amendment which I have sub them. Mr. MUNDT. I am happy to yield to mitted, and which I hope will be adopted If there is a default on any credit exthe Senator from Iowa.
by the Senate overwhelmingly, or per tended for the sale of this wheat, it will Mr. HICKENLOOPER. Perhaps what haps the Committee on Foreign Relations be the American taxpayer, or good old I am about to say is somewhat collateral will accept it and obviate the necessity “Uncle Sucker,” who will take the loss, to the Senator's very interesting, inform- of a yea-and-nay vote, because it seems not the private banking institutions, ative speech. However, I just took from to me it is a perfectly logical, necessary, since they will be protected by the adthe news ticker an interesting piece of in- and sound amendment.
ministration's decision from any loss of formation which might be of interest to Is it not odd that just a few weeks ago dollars. My amendment would prohibit the Senator in his discussion. It is a UPI we were asked to advise and consent on this kind of financial shenanigan. It dispatch from Moscow, with reference to a test ban treaty, whose major provisions would prohibit the Export-Import Bank Cuba. It reads:
were already effective in this country or any other agency of Government from The Government newspaper Izvestia
through the President's proclamation at guaranteeing repayment of these cred
his American University speech its extended by private American bankI interpolate that Izvestia has never June 10, which precluded our testing of ing institutions to Communist countries. been known, so far as I am aware, to nuclear weapons?
It would insure that the wheat and other print anything that did not have the
On this issue, already decided by Ex grain sales are strictly consummated approval of Moscow.
ecutive decree, the Senate was asked to through private channels, as the PresMr. MUNDT. I am sure that is a cor- advise and consent.
ident said they would be; and without rect statement.
The decision to sell wheat and other Government support, as the President Mr. HICKENLOOPER. I continue to
grains to Russia and the Communist bloc said would happen; and that the grain read:
was made in the executive branch of the trade and private credit institutions The Government newspaper Izvestia said Government without any advice or con
would be undertaking and entering into tonight the Soviet Union
such sales contracts at their own risk United States to withdraw all Russian troops President, our ratification of the test ban
and for their own profit, not at the risk from Cuba.
of the unsuspecting American taxpayers. It said the question of Soviet troops in treaty proposal and the decision to apCuba “is a problem between the Soviet prove sales of wheat and grains to the The American taxpayer should not be Union and Cuba” and no one else.
Communist bloc demonstrate significant asked or required to pick up the very A leading Izvestia article signed “Ob- needs for changing the guidelines estab- substantial risk in these sales which server” referred to a claim attributed to lished as a basis for our American foreign
lished as a basis for our American foreign many private grain traders now want U.S. special envoy W. A. Harriman that Pre- policy-if indeed it does have established mier Khrushchev promised him that all Rus- guidelines. Both of the above instances
guidelines. Both of the above instances tect the overburdened taxpayers of sion troops would be pulled out of Cuba. have a bearing on the decisions we are
America and would place American fi"It is difficult to say with whom this version originated, with Harriman himself now making on this foreign assistance
now making on this foreign assistance nancial institutions who provide the or the New York Herald Tribune which legislation. While we are asked yearly
legislation. While we are asked yearly credit in this instance on notice that quoted him," Izvestia said.
to authorize the appropriation of billions these grain sales will be conducted on The Soviet newspaper apparently referred of dollars for foreign aid to strengthen the same basis as sales negotiated in this to a Washington column by Joseph Alsop the economy and the muscle of the free country. Private credit will take the
risks, make the profits, and stand the pay cash for what they buy, or that those The remainder of the memorandum losses—if losses occur for any reason seeking a quick profit by selling to the deals with the specific conditions of these whatsoever. My President, I hope that Communists on long term credit assume sales.
sales. I shall not take the time of the when my amendment is offered, it will be responsibility for their own losses and Senate to read the entire memorandum adopted, so that sales of grain to the for their failure to collect on credits ex
for their failure to collect on credits ex- at this time, inasmuch as the amendCommunist bloc will not be at the ex tended to those who so often have demon- ment to which it is relevant is not now pense of the U.S. taxpayers in case the strated their bad faith in one program pending; but I believe it will be helpful, Communists default on their payments and one promise after another.
for the information of the Senate, to and violate still another one of their Let those who would make the profit have the memorandum printed in the promises.
assume the risk, Mr. President. Let us RECORD; and no doubt this question will Mr. President, if we are to continue to not try to compel all the taxpayers of be discussed further when the amendspend billions of dollars to strengthen the United States to underwrite the bad ment is before the Senate. the capacity of the free world to defend faith of the Communists, who seek to
I ask unanimous consent that the itself against Communist subversion and obtain from us the supplies, the food, and memorandum be printed in the RECORD. aggression, the least we can do as Sena the fabric required in order to strength There being no objection, the memtors and as guardians of the interests en them in their mad desire to bury the orandum was ordered to be printed in of the American people is to make sure free world and to destroy Christendom. the RECORD, as follows: that our fellow taxpayers are not also I shall have more to say on this sub- MEMORANDUM: EXPORT-IMPORT BANK GUAR 'Ncharged with the expense of providing ject when I call up my amendment. At TEES OF SALES TO BLOC, NOVEMBER 6, 1963 supplies to the Communist countries this time I merely make this preliminary The story in yesterday's Washington Post whose persistent attacks against free statement in the hope that Senators will concerning the Export-Import Bank's guarworld security make these AID appro read and study the amendment and ac
antee of a sale of corn to Hungary, and the priations or some other type of foreign quaint themselves with the facts, and
Bank's readiness to extend similar terms assistance
with respect to other commodity deals with program necessary. My in order that the country generally may
the Soviet bloc, contains at least two errors. amendment would do precisely that no know what will be provided by the suc
First, as will be seen from the detailed acmore and no less. It would protect the cession of appeasing actions favorable
count below, the Bank is not covering 100 American taxpayers against the very to the Communists unless we take the percent of the financing of the corn deal of probable contingency that he will have opportunity provided by my amendment about $6 million with Hungary. Second, to pay through the Export-Import Bank to call a halt to a suicidal program of
there is no "usual 50-50 practice" concerning for the credits defaulted by Communist that kind.
guarantees, contrary the newspaper
story. countries to which our wheat and grain Mr. President, I urge the adoption of
The Export-Import Bank has announced are being sold. my amendment in order to protect the
terms which would be extended, if accepted, In my opinion, the whole concept of American taxpayers against the neces to any of the deals between American supstrengthening our enemies by selling sity of being called upon to finance both
pliers and Soviet bloc purchasers of comthem the supplies they need on credit sides of the cold war at the same time. modities. These arrangements are as folterms which will safeguard their Com It is bad enough that we are now beyond lows: The Bank is ready to issue guarantees munist economies, while at the same the $100 billion mark in helping to fi
through U.S. commercial banks. The time spending billions of dollars nance the free side of the cold war. But
Bank itself will not grant any credits.
It will issue 100 percent guarantees against strengthening the capacity of our friends now, when we are asked to go beyond
the political risks and full coverage of certo resist the encroachments of aggres the $100 billion mark and to appro
tain credit arrangements which are made. sive, atheistic communism, as we are be priate additional billions, we are told However, these terms depend completely on ing asked to do by means of the present that the American taxpayers not only the following conditions being met first: foreign aid and assistance bill, is a high are to underwrite and support to that (1) The purchasing country must pay 25 ly questionable and sadly inconsistent extent the free world, but also they are
percent of the purchase price in dollars to concept. It clearly indicates the need to finance the Communist side of the
the commercial bank representing the supfor the evolvement of a new type of cold war by guaranteeing any debt the plier prior to shipment of the commodity;
(2) a maximum of 18 months credit for the U.S. foreign policy. Our constituents Communists incur in purchasing supplies
balance may be extended by the commercial have the right to expect more construc from the United States. I ask Senators bank; and (3) the balance of 75 percent of tive and more consistent action from to consider seriously the ultimate con the purchase price must be paid in three their Senators than mere endorsement sequence of such a reckless squander- equal installments at 6-month intervals durof such an inconsistent self-defeating ing of our country's resources.
ing those 18 months an interest charge of 5 program as involved in our prevailing Mr. FULBRIGHT. Mr. President,
percent is levied on this balance. In connec
tion with the above account, it should be foreign policy. some of the statements which have been
understood that the buyer has to make conSurely, the long record of broken prom made are quite inaccurate and are tact with the American supplier, who then ises by the Communists does nothing among the strangest interpretations of turns to a U.S. commercial bank, which to give them a high-grade credit rating. the facts I have ever heard on the floor in turn would go to the Export-Import Once they have our merchandise, they of the Senate.
Bank. can and will default on their payments I have had prepared a memorandum
The Export-Import Bank stresses that with the same contemptuous disdain based upon an inquiry made some days aside from the fact that a short-term credit
there is nothing new in these arrangements that they have demonstrated in their ago of the Export-Import Bank. Last risk is being covered with respect to a Soviet failure to pay the just debts they owe week I received an inquiry relative to an bloc country. In fact, the Bank has been to us for previous credits and to pay article published in the Washington making similar arrangements, the debts which today they owe to the Post.
liberal terms, with respect to sales of cotton United Nations and to the other free
Mr. President, I shall read the last ever since the Bank was established. In last sectors of the world. It does not make
paragraph of the memorandum, in order July, for example, a $60 million sale of cotto z good sense—in fact, it makes no sense
to Japan was covered by 100 percent politito indicate what I mean: at all to use the funds of the United
cal and credit guarantees; no downpayment
The Export-Import Bank stresses that was asked and a lower interest rate was inStates to guarantee the credit and to un
there is nothing new in these arrange volved. derwrite the financial "good intentions” ments-aside from the fact that a shortof the Communists. This is even more term credit risk is being covered with restartling than appeasement; this is an spect to a Soviet bloc country. In fact, the PROPOSED PAY INCREASE UNREALendorsement of the checks and the notes
Bank has been making similar arrangements, to be utilized by the Communists in puron more liberal terms, with respect to sales
ISTIC chasing supplies to strengthen their caof cotton ever since the Bank was established.
Mr. YOUNG of Ohio. Mr. President, In last July, for example, a $60 million sale pacity to attack us. It is a startling
of cotton to Japan was covered by 100-per- within a short time the Post Office and anomaly. If we must sell them food and
cent political and credit guarantees; no Civil Service Committee of the House of merchandise which I very much doubt downpayment was asked and a lower inter- Representatives will issue a report the least we can insist upon is that they est rate was involved.
recommending salary increases for all