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three branches of the Federal Govern- let these jobs be named specifically and wishes to do that. This means frequent ment—the executive, the judiciary, and let specific legislation be enacted to cor- travel to his home State. It means the legislative. rect the problem.
maintaining his home there as well as Last June 13 I spoke out in this Cham- For years every time a pay raise bill a Washington residence. Contrary to ber and cautioned against the king-size comes before the Congress, we have the belief of many people, Senators do salary increases recommended by the heard this timeworn argument. I ask not have expense accounts except for President's Advisory Committee. Un my colleagues, is it necessary and fair to transportation costs alone of two trips fortunately, it appears that the bill soon the taxpayers to raise the pay of 2,000 a year to their home States. Furtherto be voted on in the House of Repre- second-, third-, and fourth-level ad- more, I seriously question whether there sentatives for the most part embodies ministrators in order to obtain 50 quali- would be any additional candidates for these unrealistic recommendations. fied first-level administrators?
election to the Congress because of the This legislative proposal if enacted into Regarding U.S. judges it is well known proposed pay raise. No doubt the same law will cost American taxpayers over that whenever there is a vacancy on the men and women would be elected or re$600 million a year. This is only the be- Federal bench, many, sometimes hun- turned to the Congress. The fact is that ginning. History teaches us we may be dreds, of competent lawyers seek the very few men and women of high assured that within the next 2 years an- appointment. There are at most but a achievement in private life would refuse other pay increase bill will be requested. few hundred lawyers in our Nation, who, appointment or certain election to the Also, as the Federal bureaucracy grows, if offered an appointment to the Federal Senate of the United States or the House the price tag for this increase will grow bench, would not accept. Although of Representatives. with it.
there may be some, it is extremely doubt- Another argument which we conFrankly, Mr. President, I believe that ful that a lawyer would refuse appoint- stantly hear in connection with pay this proposed legislation would be a fan- ment to the Federal bench at $22,500 a raises is that the Federal Government tastic raid upon the Public Treasury. year and agree to accept were the salary must be competitive with private indusLong ago it was written:
to be increased to $35,000. I would like try. Private industry bases its pay scale Enter ye the strait gate: for wide is the to know the name of one man in the on profits. Where profits are great, salgate, and broad is the way that leadeth to Nation who would refuse appointment
Nation who would refuse appointment aries in many instances are supercolosdestruction, and many there be which go in to the U.S. Supreme Court, the highest sal. I make no complaint about this. . thereat: because strait is the gate, and nar- honor a lawyer may receive, solely be- However, no such factor governs the row is the way, which leadeth unto life, and
cause this position pays $35,000 a year Federal Government's payroll. Our Goyfew there be who find it. and not $45,000.
ernment's only source of income for payThe gate to the Public Treasury is wide, It should be remembered that in ad- ing salaries is the taxpayer who, heaven and broad is the way. Far too many dition to the prestige and other emolu- knows, already is bearing a heavy there be which go in thereat. As Sena- ments that accrue to a member of the enough burden. tors of the United States it is our duty to Federal bench, these judges enjoy their An essential factor the committee has guard this gate and to protect it to the salary as long as they live whether they
failed to recognize is that the purpose of utmost against unreasonable and unwar- continue to serve actively or whether
continue to serve actively or whether Government is service whereas the purranted entry.
they retire following 10 years of service pose of industry is profit. If the goal is I cannot in good conscience support having reached the age of 70. Talk to try to match the pay scale of private the proposed pay raise bill in its present about job security, they have it for life
about job security, they have it for life industry, then we must accept the fact form. It would increase the salaries of and with all the trimmings.
that this proposed bill is only the first Cabinet officers from $25,000 to $40,000 There are Federal judges today in installment, and that future requests will per year, and make comparable increases Ohio and in most other States who have
Ohio and in most other States who have indeed make this present legislation look for salaries of the various and sundry reached retirement age and could have miserly. deputy secretaries, under secretaries, as- retired years ago. Evidently, they do We should realize that the Federal sistant secretaries, and administrators- not feel that they are being underpaid Government can never match the salsome to $38,500 per annum. Then there as many continue to serve actively well aries of private industry. We shall alare substantial raises for the deputy as- beyond the retirement age of 3 score ways have to rely to a marked degree on sistant secretaries, deputy commission- and 10.
many citizens to serve their Governers, administrative assistants, executive Furthermore, the vast body of Fed- ment as their lives' work. That is as it assistants, and right down the line. eral employees, protected as they are by should be. These bureaucrats frequently solicit and Civil Service, on retirement receive an It is fair to say that citizens generally because of pressing their applications re- annuity which is comparable to the best
annuity which is comparable to the best wish public officials to be paid adeceive these appointments. Frequently, in private industry.
quately. It would be foreign to our probably almost daily, I am besieged with Mr. President, I am also opposed to the American way of life were Congressmen, requests from qualified men and women $10,000 salary increase for Senators and
$10,000 salary increase for Senators and for example, to be denied adequate comseeking appointive Federal jobs. I am Members of the House of Representa- pensation. It would be unfortunate sure that this is true of other Senators. tives. However, there is much more were only men and women born to great
We hear the argument that many im- merit to a reasonable increase in salaries wealth, or who had acquired great portant positions go unfilled or are oc- for Members of the Congress than for wealth, able to afford to occupy public cupied by unqualified people because appointed officials and the judiciary. It
appointed officials and the judiciary. It office, elective, or appointive. No one those who are qualified to fill them will seems to me outrageous to propose that wants that. On the other hand in my not leave private industry for a lower the Administrator of some independent judgment the House Post Office and Civil Federal salary. I am sure that this is agency should receive a salary in excess Service Committee has reportedly come probably true in some cases. However, I of that of a U.S. Senator.
forth with overly generous and, in fact, have never seen the results of any study The bill pending in the House of Rep- outrageously high salary recommendawhich named names and named jobs that resentatives would create a new group tions. have gone begging or whose functions of bureaucrats, many hundreds of whom Mr. President, because of my opposiare not being adequately performed for would receive salaries of $38,500 per an- tion to a salary raid on the Public Treasthis reason.
num. They are appointed officials. ury at this time, I have received criticism If it is necessary to raise the salaries They do not have to spend campaign from some on the Federal payroll. It for 10, 20, 50, 100, or even 1,000 Federal money to be elected. The cost of cam- startled me somewhat that one of them, jobs in order to lure competent people, is paigning to be elected to the House of Representative WAYNE HAYS, of Ohio, acit necessary at the same time to raise the Representatives or the U.S. Senate has cording to newspaper reports, stated that salaries of all Federal employees for the become terrific, almost beyond compre
become terrific, almost beyond compre- both Ohio's Senators were not worth the sake of these few ? Frankly, I am tired hension. Furthermore, following elec- increased salary proposed for Members of this wornout argument. If there are tion, even though a candidate had politi- of the Congress. Mr. President, I ask certain Federal positions for which there cal contributions to help him defray the
cal contributions to help him defray the unanimous consent that pertinent exis proof that a higher salary level is cost of campaigning, he should maintain cerpts from an article entitled "HAYS needed to attract competent people, then close relations with his constituents and
close relations with his constituents and Says Ohio Senators Are Not Worth Pay me.
Increase,” which appeared in the Cleve- leagues secure committee assignments to size salaries. We should not make the land Press on October 31, 1963, be print- their liking.
Public Treasury the private domain of ed in the RECORD at this point as part of Representative Hays asked me to try public servants. my remarks.
to have him placed on the Committee on Mr. MORSE. Mr. President, will the There being no objection, the excerpt Foreign Affairs, then as now, a blue- Senator yield? ? of the article was ordered to be printed ribbon committee of the other body, I Mr. YOUNG of Ohio. I am glad to in the RECORD, as follows:
spent time and effort in conferences, and yield. HAYS SAYS OHIO SENATORS ARE NOT WORTH recommended my new colleague. He Mr. MORSE. I should like to bear witPAY INCREASE
was later selected for membership on the ness and give testimony to the fact that, (By Thomas Talburt) Committee on Foreign Affairs.
in my judgment, the Senator from Ohio WASHINGTON.-Congressman WAYNE HAYS,
I did my best for him in 1949. It is [Mr. YOUNG] is worth to the people of Democrat, of Ohio, says he understands why true that I have not done anything for
true that I have not done anything for Ohio many times his salary, and I hope both of Ohio's Democrat Senators oppose a Representative HAYS lately. He has the people of Ohio will see to it that congressional pay raise. He says they're not been a very fine and effective Represent
been a very fine and effective Represent- he continues to serve in the Senate for worth it.
ative, representing Ohio and the Nation. many more years to come. HAYS, who's backing a proposed pay boost, I understand that his work on the House Mr. YOUNG of Ohio. I thank the dissaid he'll offer an amendment to pay legisla- Committee on Foreign Affairs is out- tinguished senior Senator from Oregon tors on a sliding scale from $5,000 to $35,000 a year and let each Member decide for him- standing, and that his frequent travels [Mr. MORSE). I shall take my seat feelself how much he is worth.
overseas have broadened his knowledge ing very humble over the commendatory “If my amendment passes and either Ohio of foreign affairs and have won for him statement he has just made regarding Senator says he's worth more than $5,000, he the agnomen, “Ohio's Marco Polo.” His could be tried for perjury," snapped HAYS. most recent trip to London and Paris has
After placing rather dubious prices on the been well publicized. Ten Members of heads of Senators FRANK LAUSCHE and STE
the other body made this trip to the In- AMENDMENT OF FOREIGN ASSISTPHEN YOUNG, HAYS was asked to evaluate his
terparliamentary Conference in Paris. own performance.
ANCE ACT OF 1961 "I'm worth the maximum,” he declared. Meanwhile the other body continues in
The Senate resumed the consideration session, but has not acted upon the im"I'm sick of demagogs," HAYS added.
of the bill (H.R. 7885) to amend further “There are plenty of people in Congress who portant administration medicare bill, to
the Foreign Assistance Act of 1961, as will vote against the bill and then be the call attention to one omission on the part
amended, and for other purposes. first in line to get their checks. of that body. Unfortunately, because of
Mr. MORSE. Mr. President, I should Senator YOUNG laughed when told of Hays tax features of this legislation the Senate
like to have the attention of the chaircomments, but offered no reply. LAUSCHE cannot pass needed hospital and nursing could not be reached.
man of the Foreign Relations Committee. home insurance without social security, WANTS $35,000 commonly termed "medicare,” until it is
As I said at the beginning of my speech
on the pending amendment, No. 306, I The pay bill approved by the House Civil first passed in the House of RepresentaService Committee yesterday provides a $10,- tives.
hope that any modifications that will 000-a-year raise for Senators and Congress- My Ohio colleague is quoted as having
make it helpful and stronger, without men, from $22,500 to $32,500. Hays is hold- said, "If either Ohio Senator says he is
sacrificing the main objective I have in ing out for $35,000. worth more than $5,000, he could be tried
mind can be agreed upon. This article by Tom Talburt, Wash- for perjury." I will give that statement
The first Senator to speak to me about ington correspondent for the Scripps- the charity of my silence. Furthermore, that was the Senator from Vermont
[Mr. PROUTY). He said it had been repHoward newspapers, contains the follow- to the evaluation of his own performing specific statements made by Repre- ances and his statement that he is worth
resented to him that my amendment sentative HAYS: the maximum I shall not disagree.
would prevent sales. I said I did not be
lieve it would, but if there were any Congressman WAYNE Hays, Democrat, of Without a doubt he is an expensive and
question about it, it would have to be Ohio, says he understands why both of Ohio's valuable Member of Congress. Democratic Senators oppose a congressional
Mr. President, I am not opposed to a
modified in order to remove any doubts. pay raise. He says they're not worth it. reasonable pay increase for some Gov
So, on the basis of that conversation, Hays, who's backing a proposed pay boost, ernment officials and employees when it
after I consulted with other Senators, I said he'll offer an amendment to pay legisla- can be shown they are deserving of it.
propose a modification of the amendtors on a sliding scale from $5,000 to $35,000 Furthermore, although I am opposed to ment, as follows: a year and let each Member decide for him
the bill as introduced, I do believe that if (i) No funds shall be made available under self how much he is worth.
this Act on or after the date of enactment "If my amendment passes and either Ohio it is reasonably amended, it is entitled to
of this subsection (except for military sales Senator says he's worth more than $5,000, he consideration.
under section 503) to any economically decould be tried for perjury,” snapped HAYS. Furthermore, if salary increases are
veloped nation, except to fulfill firm comAfter placing rather dubious prices on the given to appointive bureaucrats and
mitments made prior to July 1, 1963. The heads of Senators FRANK LAUSCHE and Federal judges, then the Members of the President is directed to make no further STEPHEN YOUNG, HAYS was asked to evaluate Congress should receive equal considera- commitments for assistance (except for milihis own performance.
tion. It is certain that Senators and tary sales under section 503) to such eco"I'm worth the maximum," he declared. Representatives can have a much better
nomically developed nationsMy first acquaintance with the gentle- case made for them for a pay increase
Then I drop out of the amendment man from the 18th Ohio District was in than can possibly be made for most ap- the language on line 5, page 1, starting January 1949, when he came to Wash- pointive officials. There is certainly with the word "and"ington as a first term Representative. more justification for a pay increase to
and is directed to terminate such commitAt that time, I was serving my fourth Members of Congress than for U.S.
ments made prior to July 1, 1963, at the earterm as a Member of the House of Repre- judges and all appointive officials except liest practicable time. The President is fursentatives and had been elected to mem- certain Cabinet members.
ther directed to report, not later than July bership of the Committee on Ways and It appears to me that some provisions 1, 1965, to the Speaker of the House and Means which is the committee on com- in the pay raise bill are really somewhat to the Senate Foreign Relations Committee mittees of that body. As a member of frightening. Do we want Washington
on the steps which he has taken to comply
with this provision. that powerful committee, I was assigned bureaucrats to become America's new the duty of recommending committee as- economic royalty? I hope that members This I agreed to do because the signments for freshman Congressmen of the Senate Post Office and Civil Sery- amendment, in this form, will accomfrom Ohio, West Virginia, Indiana, and ice Committee and all Senators will look
ice Committee and all Senators will look plish the main objective. The main difMichigan and for Congressmen from long and hard at this legislative proposal ference between my amendment and the those States who desired to make a should it come to us from the House of
should it come to us from the House of language of the bill as it came from the change of their committee assignments. Representatives. We should not enter committee is that my amendment seeks Of course, I talked with the Democratic into a race to have public service compete to prevent longtime loans to countries leaders of those four State delegations in with private industry to determine which which really do not need loans, countries my endeavor to help my Democratic col- is more generous in payment of king- which are self-sufficient. We should be making loans to countries that need ment and supplies, which is very im- we can reach that problem. We should loans. As the chairman knows, there is portant to our adverse balance-of-pay- not be paying for infrastructure in concern as to whether the amendment ments problem. We do not want to cut France or any other self-sustaining would interfere with the short-term off the very countries which are the prin- nation. credit loans for sales. Some countries
Some countries cipal purchasers of American military Perhaps this history will be helpful to wish to buy equipment, and AID makes equipment and supplies.
the administration in connection with them a short-term credit loan. That I think we can accomplish our common some of its diplomatic economic relahelps in regard to the balance-of-pay- objective—and I have consulted the Sen- tions with those countries. ments problem, and that is why I re- ator from Oregon, who has been most Therefore, I shall be glad to join the drafted the amendment. But as to the cooperative in trying to arrive at a satis- Senator in offering the proposal as a other loans, as the chairman pointed out factory formula-by holding to the lan- substitute for my amendment, if the to me in a conference with him, they are guage which I offered, and which the chairman is willing to take it to connot making such loans now. They have committee adopted, but borrowing from ference. in the past. Of course, they could in the amendment, as modified, that is now Mr. FULBRIGHT. Mr. President, I the future. I just cannot believe-and pending, offered by the senior Senator
pending, offered by the senior Senator am quite willing to take it to conference. that is why I make the legislative his- from Oregon, that language which de- I think it is a very good substitute. I tory—that they would return to making fines an economically developed nation,
fines an economically developed nation, am sure it will be agreeable to the other the other type of loan in view of the lan- making one change.
members of the committee. I am glad guage in the bill as reported by the The suggestion I make is that begin to accept the substitute. committee and the debate we have had ning on page 47, following the figure Mr. CHURCH. I thank the Senator. on the subject matter.
"$1,000,000” on line 21, we add the fol- Mr. President, on my own behalf and The chairman of the committee ought lowing paragraph:
that of the Senator from Oregon, I send to know we have been trying to work out As used in this subsection, the term "eco- to the desk a substitute amendment, and an amendment that would be acceptable. nomically developed nation” shall include, ask that it be read. Mr. CHURCH. Mr. President, will the
but need not be confined, to any nation list- The PRESIDING OFFICER. Does the
ed as an exception to the definition of "ecoSenator yield?
Senator from Oregon withdraw his nomically less developed nation" contained
amendment? Mr. MORSE. I yield.
in United Nations General Assembly ResoluMr. CHURCH. First, let me say that tion 1875 (S. IV) and, in addition, the Ger
Mr. MORSE. Mr. President, if I may, we do, indeed, share a common objecman Federal Republic and Switzerland.
I am going to send to the desk my amendtive. I think it is shared by the distin
ment, as modified, that I discussed. It
For the information of the Senate, I ought to be in the RECORD, and I ask guished chairman of the committee as
may say that the nations listed in the unanimous consent that it be printed well. That objective is to put an end to cited United Nations General Assembly in the RECORD at this point. the AID program to rich and fully self
resolution include all of the clearly selfsufficient countries. To that end, the
There being no objection, the amendsufficient, recovered, prosperous nations ment was ordered to be printed in the committee adopted an amendment I of- that both the Senator from Oregon and RECORD, as follows: fered for I have long been interested in
the Senator from Idaho wish to strike eliminating this defect in the foreign aid from our foreign aid list.
On page 47 delete lines 15 to 21, inclusive, program—which appears on page 47 of I think, with the legislative history
and insert the following: the committee print, beginning on line 15, that the Senator from Oregon has so
“(i) No funds shall be made available and reads as follows:
under this Act on or after the date of enactably made, this addition, by more clear
ment of this subsection (except for military No assistance shall be furnished on a grant ly defining the countries we have in
ly defining the countries we have in sales under section 503) to any economically basis under this Act to any economically de- mind, but leaving it open for the addi- developed nation, except to fulfill firm comveloped nation capable of sustaining its own
tion of other countries that may become mitments made prior to July 1, 1963. The defense burden and economic growth except self-sufficient in the future, will accom
President is directed to make no further (1) to fulfill firm commitments made prior to July 1, 1963, or (2) additional orientation
commitments for assistance (except for miliplish our objective, and improves the
tary sales under section 509) to such ecoand training expenses under part II hereof language the committee has adopted
language the committee has adopted nomically developed nations. during fiscal year 1964 in an amount not to with this objective in mind.
“As used in this subsection the term 'ecoexceed $1,000,000.
I would suggest to the Senator from nomically developed nation should include The two exceptions seemed highly de- Oregon that he join me in offering this but need not be confined to any nation listed sirable; the first, because we must honor language as a substitute for the amend
language as a substitute for the amend- as an exception to the definition of 'ecoour prior commitments, since the United ment now pending. I am hopeful that
nomically less developed nation' contained States keeps its word; and the second, be- the distinguished chairman of the com
in United Nations General Assembly Resolu
tion 1875 (s. IV) and, in addition, the Gercause we deemed it wise to permit a mittee will accept this addendum to the
man Federal Republic and Switzerland.” year's time within which to transfer the language which the committee previousorientation and training courses from the ly approved.
Mr. MORSE. Then I want it underforeign aid program into the military
Mr. MORSE. I will join the Senator stood that I withdraw that amendment, budget, where they properly belong. from Idaho in offering the amendment and substitute for it the amendment that This language allows for transition pe- as a substitute for my amendment. It the Senator from Idaho [Mr. CHURCH] riod during which the change in budget- accomplishes our main objective. The
accomplishes our main objective. The and I now jointly offer. ing procedures can be accomplished. legislative history makes clear to the Mr. CHURCH. Mr. President, I take I think it is very important that the administration our attitude.
administration our attitude. We hope note of the fact that the senior Senator Senator from Oregon is making legisla- there will not be a reopening of long- from Texas [Mr. YARBOROUGH] is on the tive history on the question of long-term term economic loans which are no longer floor. He was one of my original supeconomic loans. I understand it to be being made. Also, it will serve notice porters to amend the bill to strike the the policy of this administration not to on the administration that Congress rich countries from the foreign aid list. extend such long-term loans to rich hopes something can be done with regard
hopes something can be done with regard He has now asked that he may have countries. However, I think it should be to some of the commitments already his name added to the substitute. made perfectly clear that it is the intent made, although we have to keep those
I ask unanimous consent that his of Congress also that no further long- commitments if we cannot reach an un- name be added to the amendment, with term loans should be made to countries derstanding in those instances where
in those instances where the consent of the Senator from Oregon. fully capable of furnishing their own understandings are due. Many of these Mr. MORSE. It would be a great capital.
countries, for example, are not keeping pleasure to have the Senator's name on So I commend the Senator from Ore- their United Nations commitments. the amendment. gon for the legislative history he is mak- Furthermore, as the chairman of the The PRESIDING OFFICER. Withing. But we should be careful to make committee knows, in committee many out objection, it is so ordered. certain that short-term credits are not of us have expressed from time to time The amendment offered by the Senaforeclosed, because today we are export- our views about having to put money tor from Idaho [Mr. CHURCH], for himing abroad, for cash or short-term credit, into infrastructure in Europe; but we
into infrastructure in Europe; but we self and the Senator from Oregon [Mr. a billion dollars worth of military equip- are committed to it. I do not know how MORSE), and the Senator from Texas [Mr. YARBOROUGH) as a substitute for the ministration on notice that these budget adopted one amendment after another, Morse amendment to the committee sub- transfers should be made next year; but the amendment I am now discussing stitute will be read.
that Defense should take care of our has not yet been brought up. In the The LEGISLATIVE CLERK. On page 47, NATO obligation, and that this excess House and I say this for the informaafter $1,000,000, it is proposed to insert: baggage should no longer be carried as tion of the Senate—this year a different As used in this subsection, the term "eco
a part of the foreign aid program. type of amendment was offered. Reprenomically developed nation” shall include, Mr. President, I have no further re- sentative PELLY, of Washington, offered but need not be confined to any nation marks to make. I am grateful to the an amendment to strike out all of seclisted as an exception to the definition of
chairman of the committee for having tion 203—to repeal it—and this would "economically less developed nation" con
accepted the amendment. I hope the have eliminated any form of revolving tained in United Nations General Assembly Senate will adopt it.
fund. On that type of proposal, he was Resolution 1875 (S. IV) and, in addition, the
The German Federal Republic and Switzerland.
PRESIDING OFFICER. The defeated. However, no amendment has
question is on agreeing to the amendment yet been brought forward which merely Mr. CHURCH. For the information
offered by the Senator from Idaho [Mr. provides that the amounts of money as of the Senate, I have a list of the coun- CHURCH], for himself, the Senator from they come in shall be subject to the regutries covered by the United Nations Gen
Oregon [Mr. MORSE), and the Senator lar appropriation process. eral Assembly resolution referred to in
from Texas [Mr. YARBOROUGH], in the On page 288 of the hearings is a list the substitute amendment. I ask unani
nature of a substitute for the amend- of the AID development loans for fiscal mous consent that the list may be
ment of the Senator from Oregon to the years 1962 and 1963. These are cateprinted in the RECORD at this point.
committee amendment, as amended. gorized, so that we can see what type of There being no objection, the list was
The amendment to the amendment loans have been made. The first item is ordered to be printed in the RECORD, as was agreed to.
public activities. It shows a total of follows:
Mr. DOMINICK. Mr. President,
Mr. President, I $415,800,000 for water, sewerage, power, Australia, Austria, Belgium, Byelorussian send to the desk my amendment No. 292, and light; $81,800,000 for irrigation, soil SSR, Canada, Czechoslavakia, Denmark, and ask that it be stated.
conservation, and grain storage; $204,Finland, France, Hungary, Iceland, Ireland,
The PRESIDING OFFICER. The 100,000 for roads, railroads, ports, airItaly, Japan, Luxembourg, Netherlands, New
amendment will be stated. Zealand, Norway, Poland, Rumania, South
ports, and communications; and $63,
The LEGISLATIVE CLERK. On page 31, Africa, Sweden, Ukrainian SSR, Union of
800,000 for housing and self-help. The Soviet Socialist Republics, the United King
line 18, after the section number it is total for these activities is $765,500,000. dom, and the United States. proposed to insert “(a)”.
This is only for fiscal years 1962 and
On page 32, between lines 5 and 6, add 1963. Mr. CHURCH. In connection with the the following:
It then goes on and details loans remarks of the senior Senator from Oregon concerning the $77 million in the bill
(b) Section 203 of the Foreign Assistance which have been made in the form of
Act of 1961, as amended, which relates to credit institutions. It contains for NATO infrastructure, on the basis of
nonfiscal provisions with respect to development project loans, loans to private enterprise, the hearings of the committee and the loans, is amended to read as follows:
loans to governments for natural recommittee report, this is something that
“SEC. 203. All receipts from loans made
source development, and loans to govought properly to be a part of the defense under and in accordance with this title
ernments for industrial development. It budget of the United States. This is not shall be available for use for the purposes foreign aid. This is a commitment on of this title, subject only to the annual ap
then covers other features, such as feasiour part to contribute a certain proporpropriation thereof. Receipts so appropri
bility status, social services, and rehabiliated and other funds made available under
tation. tion of the funds necessary to maintain
this title for use for the purposes of this The grand total for fiscal 1962 and a military alliance. We are in that
title shall remain available until expended.” 1963 is $2,191,400,000 in development alliance for purposes of our own defense.
loans. The committee report makes it per
Mr. DOMINICK. Mr. President, I ask fectly clear that we anticipate the elimifor the yeas and nays.
Under the provision now in the bill, as
repayments of these loans are madenation of the $77 million, as a contribu- The yeas and nays were ordered.
heaven knows, we all hope the loans will tion to the NATO infrastructure, from Mr. DOMINICK. This amendment is foreign aid next year, and that we think extremely important, but very easy to
be repaid, even though we are not sure
they will be the total amount of $2,191 it should be budgeted hereafter as a part explain. Section 203 of the bill deals
million might be subject to being spent of the national defense budget of the with the Development Loan Fund. Sec
by the AID without any control of United States. It should come within tion 203 itself was written in conference
any kind by Congress. There would the regular military budget, and be in 1961. It provides, as it is now con
be no requirement for authorization and stricken permanently from the foreign stituted, that all receipts from the de
no requirement for appropriation. aid program. velopment loans, whether they be in
However, if the amendment were Because it requires time to work out terest or principal repayments, shall
adopted by the Senate as a whole, and such a transfer, the committee chose not come back into the Development Loan
were placed in the law, we would then to strike this particular infrastructure Fund, and may then be expended by
continue the revolving fund and the decontribution from the foreign aid pro- AID personnel without further author
velopment loan fund process. But we gram this year. We have certain comization and without the need for any
would require that all receipts, either of mitments, and we must meet those com- appropriation of any kind.
principal or interest, that return to that mitments. However, next year we ex- How much are we talking about, and
fund must be subject to the annual appect the administration to make the exactly what am I doing? All I am say
propriation process, which is followed in change in its budgeting arrangement so ing in the amendment is that the revoly- connection with all other spending acthat this item can be permanently ing fund shall remain as it is, that the
tivities. stricken from the foreign aid bill.
receipts from the development loans shall I should like to refer to pages 332 to Mr. MORSE. I wish only to add this come back into the fund, but that there
336 of the hearings, which show the comment: I hope this action will be rec- shall be congressional review, so that amounts of interest now in effect on ognized by the administration as clear Congress will retain some authority over
various types of loans made to various notice to both the State Department and when, how, and where those funds may countries. In the past few weeks, there the Defense Department that we are be expended.
has been discussion of the interest rate opposed to further commitments for It seems to me, from the debate that of three-fourths of 1 percent and of the infrastructure. We believe the time has has taken place under the able leader- grace period of loans which varies from come to stop building airbases, for ship of the senior Senator from Oregon, 5 years to 10 years. The proposal in the example, for the defense of other coun- that the feeling of the public as a whole committee bill this year is that after tries. They ought to build them them is that Congress has not been sufficiently 5 years the interest rate shall be raised selves. careful of the way in which the AID
to at least 2 percent. But all the loans Mr. CHURCH. I agree fully with the money has been spent or with respect to have not been made at the rate of threeSenator from Oregon. I believe the dis- the amount that is being spent. That fourths of 1 percent. They have varied cussion on the floor should put the ad- is self-evident, Mr. President. We have from country to country according to the type of loan that has been made; con- form in which it now is, $3.3 billion and take it to conference. It has been sequently, it is difficult to determine in would have been available for expendi- under consideration three times before; advance how much the amount of in- ture by the AID administration without it does not involve a new issue. Hereterest repayments may be.
any instruction by Congress concerning tofore the Senate has rejected such an On page 332, a loan is shown as hav- the places and projects where the money amendment. ing been made to Ghana for an alumi- would be spent.
Mr. MORSE. Mr. President, will the num smelter. The loan is to run for 24 Last week there was considerable dis- Senator from Colorado yield? years, instead of the standard 40 years. cussion about whether or not to increase Mr. DOMINICK. I yield.
A 4-percent loan has been made to Su- the amount of the President's contin- Mr. MORSE. I join in the request. dan for an industrial development bank. gency fund. The point was made that The amendment is a very sound one. As The terms of the loan is 15 years.
through the contingency fund the Presi- the Senator knows, I support the amendA 312-percent loan has been made to dent could spend for projects which ment, and I believe it should be taken Ghana for a Volta River power project, Congress might not consider proper, or to conference, the loan to run for 30 years.
as to which he was not proceeding in In view of the offer of the chairman A series of loans has been made to the proper way to spend. As a result, of the committee to take the amendsome other African countries—Camer- the amount of the contingency fund was ment to conference, I suggest that the oon, Ethiopia, Liberia, Niger, Nigeria, not increased.
Senator from Colorado agree to the sugSudan, Tanganyika, Tunisia, and . But the loan funds to which I am gestion that he request that the order Uganda. These loans are all at a rate referring are contingency funds which for the yeas and nays be rescinded. of three-fourths percent interest, and far exceed anything the President is Mr. DOMINICK. Then there would each is for a period of 40 years. Sena- given by Congress.
be a voice vote on the question of agreetors can examine the tables to see what If section 203 is retained as it is, we ing to the amendment? rates of interest are charged and the build into the bill, a contingency fund Mr. MORSE. Yes. terms of the loans.
of $950 million for a period of 40 years. Mr. DOMINICK. Mr. President, I ask If we consider only the amount we This does not include interest repay- unanimous consent that the order for have authorized for 1964—the reduced ments which would be coming in.
the yeas and nays be rescinded. amount for development loan purposes- In addition, we are providing a con- The PRESIDING OFFICER. Is there we see that $950 million has been au- tingency fund by allowing unrepaid ex- objection? Without objection, it is so thorized for fiscal 1964. If the entire penses on loans already existing, which ordered. amount were committed and expended amount to more than $5,728 million. Mr. DOMINICK. Mr. President, I this year at three-fourths percent in- This money would be coming back to the thank the distinguished chairman of the terest the amount of interest would be fund without Congress having the committee for his courtesy in connection more than $7 million a year. This ability, as the bill is now written, to with this amendment. The amendment amount would be pouring back into determine how much of that should be is really extremely important. the Fund and would be available for spent, and where, and in what manner I should like to ask the chairman of expenditure without any check by Con- it should be spent.
the committee a question. I have a simgress. After a period of 5 years, with I need not take much longer to dis- ilar amendment in connection with the interest at 2 percent, about $19 mil- cuss this subject. The details seem to Alliance for Progress revolving fund. lion would be flowing into the Treas- be quite plain. However, there are a Mr. FULBRIGHT. It is an identical ury. If the whole $19 million were couple of items I should like to refer to. amendment, as I understand, except that amortized over a period of 40 years, In 1961, the General Accounting Of- it would apply to the Alliance for Progassuming repayment in full, there would fice, commenting on back-door spend- ress. Is that correct? be a total of $1,386 million of receipts ing through revolving funds, said:
Mr. DOMINICK. Yes. coming into the Fund, with Congress
As with authorizations to borrow from
Mr. FULBRIGHT. I am perfectly having no authority of any kind over it.
the Treasury we believe that revolving fund willing to accept it, too. It does not make any sense to me to financing likewise represents a lessening of
PRESIDING OFFICER. The have the Senate, which is supposed to be congressional control which is justified only
question now is on agreeing to amenda part of the trusteeship over the tax- on a clear showing of need and benefit to
ment No. 292, offered by the Senator payers' funds say, "We are going to au- the Government. We believe that the need
from Colorado to the committee amendthorize the lending of these funds, but
to appropriate funds supplies the best in
centives and the most effective techniques when they are repaid, we do not care
ment in the nature of a substitute, as for congressional control of agency activities. amended. what happens to them. Those in the ex
Consequently, if the revolving fund feature The amendment (No. 292) to the comecutive branch can spend them in any is to be retained in the bill, we suggest that
mittee amendment, as amended, was way they please.” the bill be revised to provide that funds
agreed to. This is only one phase of the devel- may be used for the loan program only in amounts stipulated in annual appropriation
The PRESIDING opment loan subject. The question then
OFFICER. The acts. The related administration expenses can properly be asked: What has been
committee amendment in the nature of the status of loan repayments?
would likewise be subject to an annual a substitute, as amended, is open to furThe review by the Congress.
ther amendment. answer to this question can be found on pages 712 and 713 of the hearings. This What I am proposing is exactly what
AMENDMENT NO. 314 is really quite an interesting subject. was recommended by Comptroller Gen- Mr. DOMINICK. Mr. President, to Not only are we talking about the devel- eral Campbell, in the statement I have the committee amendment, as amended, opment loan funds as they have been just quoted.
I offer my amendment No. 314. developed over the last 2 years, but the Mr. FULBRIGHT. Mr. President, The PRESIDING OFFICER. The Development Loan Fund Corporation, will the Senator yield?
amendment of the Senator from Colowhich was the prior agency and was Mr. DOMINICK. I yield.
rado to the committee amendment, as then merged into the new Development Mr. FULBRIGHT. This question has amended, will be stated. Loan Fund. These tables indicate the been before Congress on three different The LEGISLATIVE CLERK. In the comgrand totals of worldwide loans of U.S. occasions-in 1957, 1959, and 1960. mittee amendment, as amended, on page dollars. They show the amount of tax- The amounts involved are, at the 38, in line 17, after the word "provisions”, payer dollars that have been loaned moment, relatively small—between $3 it is proposed to add the following: throughout the world.
and $4 million, although the Senator (1) All receipts in United States dollars or To date, the repayment of principal has said that it is anticipated that from loans made under this title and from has been $725,677,725.52. The repay- in the future the amounts will be loans made for the benefit of countries and ment of interest has amounted to $655,- larger. It was hoped that this fund
areas of Latin America under title I of chap550,362.82. would be given some flexibility, in terms
ter 2 of part I of this Act, notwithstanding If we take into consideration the in- of repayments in the future. However, loans payable as to principal and interest in
section 203, shall be available for use for terest and principal repayments, assum- if the Senator will request that the order United States dollars in furtherance of the ing the provision now in the bill had for the yeas and nays be rescinded, I purposes of this title, subject only to the anbeen in effect, and if it remains in the shall be glad to accept the amendment nual appropriation thereof.