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United States citizen or any corporation, Mr. MORSE. Mr. President, I thank the destruction of the rights of American partnership, or association not less than 50 the Senator from Iowa for joining me in owners in foreign countries, and would per centum beneficially owned by United making the legislative history. The therefore call for the operation of this States citizens, or
language from the old act, with the pre- amendment. There is a responsibility Then we pass to the new (3), which vious Hickenlooper amendment, plus the on the administrator to
his was the old (2), which would read- new language in the bill that has come discretion.
(3) has imposed or enforced discriminatory to the floor of the Senate from the com- Mr. MORSE. Plus the language, now, taxes or other exactions or restrictive main- mittee, leaves no room for doubt that it in the new subsection (3), which was the tenance or operational conditions
covers nullification of contracts in old subsection:
which property values, as well as outAnd then we would insert the words
(2), has imposed or enforced discriminaright expropriation of property, are in- tory taxes or other exactions, or restrictive or has taken other actions
volved. The American business con- maintenance or operational conditions, or Continuing to read the section
cerns that have expressed such great has taken other actions, which have the which have the effect of nationalizing, exconcern to the Senator from Iowa and
effect of nationalizing, expropriating, or propriating, or otherwise seizing ownership to the Senator from Oregon ought to ap
otherwise seizing ownership or control of or control of property so owned.
preciate the fact that the Senator from property so owned.
Iowa sought to draft language that Mr. HICKENLOOPER. That is corOne of the reasons for inserting the would protect them in connection with rect. There was a provision against diswords "or has taken other actions" is
almost any possible contingency that criminatory taxes in the amendment that that language would give a direction could develop if a foreign government which we put in the bill last year, but to the President to use broad discretion should seek, by one means or another, to we wish to add the words, “or has taken in determining the rights and interests expropriate the value of the property or
other actions." It is a fine distinction, of American property abroad. We name
nullify contractual relations that would when one comes to argue with some of it as specifically as it is reasonably pos- have a bearing upon the value of the the "legalistic" people in foreign sible to do so. The language "or has property.
countries. taken any other action" would have that
As the Senator knows, the Kennecott Suppose the Government owns a part effect. The President would have the
Copper Co. has extensive copper mining of the mining industry, and private opresponsibility and the discretion to de
holdings in Chile. So does Anaconda erators own some other portion of the termine when American property is being
Copper Co. I have met with officers of mining industry. The Government seized.
the Kennecott Co., as has the Senator could very well conduct its own mining The present law provides, in effect, from Iowa. I have told them that I without regard to taxes, but could levy that those provisions would go in effect if
know nothing about the merits of their taxes upon the one or two other privately "such country, government agency or case, just as I know nothing about the owned businesses in an amount great government subdivision fails within a
merits of the case of the American oil enough to drive them out of business. reasonable time—not more than 6
companies in the Argentine. It is not The Senator referred to the company months after—such action or after the for me to pass judgment on the merits
for me to pass judgment on the merits in Chile. The company has had imdate of enactment of this subsection, of the case, however. It is a Senator's posed upon it, according to my informawhichever is later."
duty, as I see it, to make certain that tion, a tax of 87 percent of net profits, The law passed last year provided procedures are established under which leaving only 13 percent. I do not have "to take appropriate steps," and so these companies would have an oppor- the details, but the government refused
This year we have inserted the tunity to establish the merits of their to allow what are recognized in this language that where the country, Goy
case and under which they would be pro- country as the ordinary expenses of doernment agency or Government sub
tected from unfair discriminatory prac- ing business. They toss items into "net division has failed to take, "within a rea- tices against them on the part of any profits" which are not net profits at all, sonable time—not more than 6 months foreign government because they are
foreign government because they are but are current operating expenses. The after such action or”-I am now reading American concerns.
company is going backward all the time. the insertion—"action or, in the event As the Senator knows, it is alleged by The government is proposing new reof a referral to the Foreign Claims Set
the Kennecott Copper Co.—and they quirements for expansion-new buildtlement Commission of the United States
have made more than a prima facie case ings; new this, that, and the other within such period as provided herein, in support of their allegation—that the
in support of their allegation that the thing—which are beyond the capacity not more than 20 days after the report Chilian Government is following a dis- of the company, if it is to keep its nose of the Commission is received.”
criminatory tax policy that is aimed at above water. It cannot operate in that We added that language because there the Kennecott Co. It may discriminate kind of situation. is a new addition calling for a referral against other companies. But there is Those are discriminatory taxes. Those to the Foreign Claims Settlement Com
no doubt about the fact that it discrimi- are excessive requirements, which are, mission, for the reason that that Com- nates against the Kennecott Co. if the in effect, a confiscation of the property mission has machinery and legal history allegations are accurate, and they appear of Americans. to set up for evaluation foreign held to be.
Mr. MORSE. They seek to impose reproperties as a result of their experience The result is that the Kennecott Co. quirements for expansion on the comin settling foreign claims, at least es- cannot operate its mining properties, and pany and force it to operate at a loss, pecially following World War II.
not being able to operate its mining apparently in the hope that forcing it All of what I am talking about will be properties, it is suffering great loss even to operate at a loss will also force it in the RECORD.
in trying to maintain the companies. It to sell its properties for a song, and Another provision provides for the looks upon this move on the part of the get out of Chile. There are other copPresident to request the Foreign Set- Chilean Government as an effort to
Chilean Government as an effort to per companies that could very well find tlement Claims Commission to evaluate finally force Kennecott either to dispose
finally force Kennecott either to dispose themselves in the same position, if they such property. He would then make a of its property in Chile for an unfairly do not watch out. determination as to whether or not the low price or to abandon it and give up Mr. HICKENLOOPER. The Senator valuation set on the property abroad even trying to maintain it, which would is correct. The threatened oil property would be a reasonable valuation or not. thereby make it possible for the Chilean expropriation in Peru, is in many ways If it is considered to be unreasonable or Government to enter into what would patterned after the Argentine proposal. unfair, he must withhold aid. If it were amount to a form of expropriation of the Mr. MORSE. That is correct. a fair evaluation, it would be up to the property.
Mr. HICKENLOOPER. In northowners either to take it or leave it. If Mr. HICKENLOOPER. It is situa
It is situa- western Peru along the desert area and they should prefer not to take it, and the tions of that kind which the words “or the ocean, many millions of dollars were determination should be that the valua- any other means” in this year's bill are spent by American and other oil comtion was a fair valuation, then, of course, intended to cover, by way of giving the panies in an attempt to develop oil fields. they would be left to their own devices President discretion to determine that The program did not develop too sucwithin the countries to fight it out in any those so-called "any other means” are cessfully. There is a geologic promise way they might desire.
in effect a denial of property rights, or of oil in the Iquitos area, the area back
of the mountains. It has cost millions Iowa about the situation in Chile or in I thank the Senator for joining of dollars to fly in equipment and Amer- Argentina. If it should be found after me in making the legislative history. ican engineers and technicians to cover analysis of the merits of the positions The legislative history being made tothe jungle. People have been living in of the companies involved, that those night will not be the last time we shall the jungle for years. Private compa- governments are following a course of hear about the subject. We are making nies have put up their money, exploring action—Chile in regard to the Kennecott legislative history tonight that will arise on behalf of the Government of Peru Copper Co., and Argentina in regard to again and again, and will cause some under contracts and agreements.
the nullifying of contracts of these oil questions to be asked of the State DeI now understand that there is good companies in flagrant violation of the partment-for example, “What have you promise of oil fields being discovered Hickenlooper amendment, the President done with respect to the Argentine and after years of effort and the expenditure would be prevented also from using the Chile, or any other country that follows of millions of dollars. But now that oil contingency fund to get around the Hick- a policy or takes steps that discriminate fields have probably been discovered the enlooper amendment.
against American investments in those proposal is made that Peru expropriate Mr. HICKENLOOPER. I believe the countries, when they are not protectthem, to take advantage of all the ex- Senator has correctly stated the case. I ed? What have you done to put the penditures made. Such a seizure would should like to invite attention to an- Hickenlooper amendment into full force be a repudiation of contracts and obli- other contingency. There are prob. and effect?” gations.
lems of patent rights which were ac- Mr. HICKENLOOPER. I thank the Mr. MORSE. We must beware of such quired and exist under law in those Senator for his contribution. To butsituations all over Latin America, if we
countries. Patent rights are not ton this matter up, I shall put in the let these precedents be set. physical, tangible rights.
RECORD evidence of expropriation and I have one final question. Will the
They are intangible rights, but rights, seizure policies. I want to appear in the Senator turn to section (e) on page 67 nevertheless. Many countries
RECORD in connection with this discusof the committee report, which reads: threatening to seize American patent sion one thing about which the Senator
The President shall suspend assistance to rights, to abrogate them and to destroy well knows, because we have discussed the government of any country to which as
them, even though they were granted it. The Foreign Assistance Act already sistance is provided under this or any other legally under the laws of the country, contains a provision as to the announced Act when the government of such country or
or under treaties or agreements, and and adopted policy of the United States, any government agency or subdivision within such country on or after January 1, 1962– have a limited time to run, as is the case
in section 601, part III, chapter 1, under in our own country.
the head of "General Provisions." For Does the things listed thereafter. Does
Those rights are undoubtedly rights, ready reference, this language is conthe Senator agree with me that the lan- just as tangible property rights are. tained in the report of the Committee on guage "under this or any other Act”
Mr. MORSE. Lastly, I spoke recently Foreign Relations on the pending bill, would prohibit the President of the on the Chilean situation.
on the Chilean situation. Tomorrow I which I referred to earlier in my reUnited States from using his contingency shall put in the RECORD, in support of marks. I read from page 60 of the fund to be of assistance to one of these legislative history being made tonight, report: countries, if it were determined the coun- further data dealing with the Chilean Accordingly, it is declared to be the policy try had violated the terms and conditions tax discriminatory policy in connection of the United States to encourage the efof the so-called Hickenlooper amend with American companies in Chile. forts of other countries to increase the flow ment?
I say most respectfully to my Presi- of international trade, to foster private inMr. HICKENLOOPER. I believe it dent, "You had better prod your State
itiative and competition, to encourage the would. I believe it is broad enough to Department to action, because Chile is
development and use of cooperatives, credit do that. It is the intent to cut off aid, proceeding with a course of action that
unionsbounty, gifts and assistance to countries cannot be reconciled with granting her After referring to several other activwhich not only are using such for their any aid, until she changes her discrim- ities, the paragraph continues, own ulterior purposes but also are de- inatory policy against American busi
and to encourage the contribution of U.S. frauding, in effect, American investors
enterprise toward economic strength of lesswhom they have invited to come to those
The paradox is that Chile, along with developed friendly countries, through pricountries. There is one exception. We the Argentine and many other Latin vate trade and investment abroad, private agreed to an amendment yesterday ex- American countries, has been pleading participation in programs carried out under empting the Peace Corps. and begging to get foreign investors to
this act. Mr. MORSE. And the cultural ex- come in. Foreign investors have been And so forth. We have announced changes, also.
offered inducements to come into those that it is our policy to encourage these Mr. HICKENLOOPER. Yes; the cul- countries. That fact places those coun- very people to go into those countries tural exchanges, as well. I voted for tries under an obligation to follow a non- with American private capital, private that exemption for various reasons. I discriminatory policy in respect to those enterprise, private ingenuity and money, believe that humanitarian operations investors—the same policy that is fol- whether it be in agriculture, mining, or probably have a little different com- lowed with respect to domestic investors. electrical development, or other developplexion. It is my understanding and There is an election campaign in prog- ment. We have encouraged that with my intention—and I believe that of other ress in Chile, and candidates are vying one hand, and with the other hand we Senators who voted for the amendment with one another to see who can make
with one another to see who can make have failed to stand up and protect the that if the abuses are great enough, it the strongest anti-American statements; claims of those investors, and the equity is within the discretion of the President but we cannot let Chilean politics do of their rightful claims. even to halt those operations.
irreparable damage to American inves- Mr. MORSE. The Senator from Iowa Mr. MORSE. We made it very clear tors, who, in my judgment, must be rec- is correct. yesterday, in the legislative history, that ognized as having some international Mr. HICKENLOOPER. That is all we the amendment did not put the Peace law rights.
are trying to reach. I think the sentiCorps in the position where it could not
The State Department ought to be told ment of Congress is pretty well developed be taken out.
to "get on the ball” so far as the Chilean in that respect. Mr. HICKENLOOPER. That is cor- and Argentinean situations are con- I call the attention of the Senator to rect.
cerned, and make perfectly clear to those an announcement which is very interestMr. MORSE. Or that the cultural ex
governments that if the merits of the ing. It is stated in a bulletin dated Nochanges could not be stopped. That will cases substantiate the allegation that vember 12, published by the Alliance for fall within the discretion of the Presi- they are in violation of the Hickenlooper Progress: “U.S. Firm Studies Argentine dent. amendment, aid will be stopped.
Investment." It calls attention to the Mr. HICKENLOOPER. We made that
It is our money. If they are going to fact that Alcan Pacific Co. of Sacravery clear.
take it, they ought to take it subject mento, Calif., an Alaskan corporationMr. MORSE. I should like to make to reasonable terms and conditions that and the Senator from Alaska should take another point clear, I completely agree we are seeking to lay down in the for- note of this—with diversified experience with the statement of the Senator from eign aid bill.
in construction contracting is going to conduct a survey in the Argentine, and amendments, there is still enough dis- Mr. MILLER. I invite my colleague's proposes to make an initial investment cretionary power in the Chief Executive attention to the wording of the act, of about $1 million on some kind of to acconiplish the objectives; aná we ex- about 10 lines from the bottom on page development project. As the bulletin pect the administration to do so, even 67 of the report, where it is provided: states, the company expects to obtain though there may be some legal question
To take appropriate steps, which may inabout one-half of this amount, equal to under which someone may attempt to clude arbitration, to discharge its obligation $900,000, in pesos and dollars from pub- crawl in an attempt to avoid the condi- under international law toward such citilic and private lending sources. The tions of this provision.
zen or entity, including speedy compensaAlliance for Progress is putting out fur- There is broad discretion in the act.
tion for such property in convertible foreign ther encouragement and announce
exchange. We are merely trying to button it up ments. doubly and triply.
We do not include speedy compensaThe constituents of the Senator from Mr. MILLER. The Senator would like tion for such property or damages. Alaska had better be very careful be- to have the administration take action Mr. HICKENLOOPER. No; I believe fore they put any of their own money about the way in which he would expect it was the intent of the committee that into that area by way of private invest- them to take action with respect to their under our concept and the concept of ment, unless we make clear to those
own personal property or money in a most jurisdictions which have a system countries that American property will similar situation. Is that correct?
approaching ours, and even under interbe equitably protected, one way or an- Mr. HICKENLOOPER. I hope they do national law, damages apply when a conother, once it goes into that country with
not handle their personal property in the tract is subject to cancellation or nullithe authority and approval of the goy
way in which they handle Government fication. I believe damages are included. ernment that invited it.
property. Therefore, I do not know Mr. MILLER. When the Senator reMr. MILLER. Mr. President, will the whether the comparison is quite apt. fers to speedy compensation for such Senator yield?
However, the Senator's observations are damages, he means for such property in Mr. HICKENLOOPER. I yield. well taken.
a broad sense, including not only perMr. MILLER. First, I commend my Mr. MILLER. I should like to ask one sonal property, but also property rights able colleague for his very thorough and or two more questions.
under contracts. Is that correct? timely speech. I should like to ask a Mr. HICKENLOOPER. I yield.
Mr. HICKENLOOPER. Yes. Damcouple of questions with a view to add
Mr. MILLER. On page 67 of the re- ages under any view include property ing something to the legislative history
port it is stated that if the foreign goy- rights. That may have to be determined which was just discussed by the Senator ernment, the recipient of our foreign aid, by hearing. from Iowa and the Senator from Oregon. does any of these acts, and if “such coun- Mr. MILLER. The reason why I am On page 67 of the report of the Com
try, government agency, or government asking these questions is that I am mittee on Foreign Relations, to which the subdivision fails within a reasonable afraid that our experience has been that Senator from Iowa just referred, I invite time to take appropriate steps to dis- some interpreters of what we do in Conattention to the fact that subsection (e)
charge its obligations under internation- gress like to play games with words; and reads:
al law toward such citizen or entity,” we wish to make it clear that we are covThe President shall suspend assistance to and so forth.
ering all reasonable contingencies, so the government of any country to which as- I suppose that refers to the confisca, that there will not be any confusion or sistance is provided under this or any other tion of property, and means that an
any excuse that they did not understand Act when the government of such country
what we intended, after they read the or any government agency or subdivision appropriate payment should be made; within such country on or after January 1, and we provide further that it be made report. 1962in convertible foreign exchange.
My last question relates to the next My question is with respect to the item, in which reference is made to a Does certain things. Subsection (2)
situation described in subsection 2 re- failure to take steps designed to provide under subsection (e) has been added by garding the nullification of existing con
relief from such taxes. There are two the committee this year. tracts?
ways to interpret that language. One Is it the intention that any actions
We do not have the taking of property would be that relief from such taxes taken, as described in subsection (2), as such, but we do have damages. Is it would mean not imposing them in the from January 1, 1962, on shall have the the intention behind this provision that future. That is a form of relief. At results that have been described with under international law damages which least we would not get hit a second time. respect to the other items that were listed
may arise from actions taken to repu- I suggest—and I would like confirmation in the act last year?
diate or nullify existing contracts shall from my colleague—that the intention is Mr. HICKENLOOPER. That is the also be paid in convertible foreign ex- not quite that easy, but that we intend, exact intention of the amendments. change?
as I interpret it, that if discriminatory They refer back to January 1, 1962. It
Mr. HICKENLOOPER. Yes.
taxes have been imposed, the relief would is the intention to have the amendments Mr. MILLER. Equivalent to the full relate to the imposed taxes, as well as which we are adding to the present law value of the damages?
any future taxes of like kind. become retroactive to January 1, 1962.
Mr. HICKENLOOPER. Yes; there is Mr. HICKENLOOPER. It most cerI think that is pretty well understood by
a body of international precedent and tainly is the intent, if discriminatory or the State Department.
law and agreement that has been built confiscatory taxes have been imposed, Mr. MILLER. So if an oil company up. I am not quite sure what inter- that they be reexamined and readjusted had a contract repudiated after January national law is. I know what it is said to on the basis of equity and fairness, and 1, 1962, but prior to the date of the enact
be. I am not quite sure what it is, how- that, of course, under the law would be ment of this act this year, it could seek ever.
ever. It is a hodgepodge of itinerant the responsibility of the Administrator relief under this act?
agreements, treaties, international agree- to determine, or in such other forum as Mr. HICKENLOOPER. That is cor- ments, and this, that, and the other may be properly set up to determine rect. thing. We could probably go back to
that question. Mr. MILLER. I have another ques- the days of Genghis Khan, and pick up Mr. MILLER. I thank my colleague. tion
old parchments to seek out what inter- Mr. MONRONEY. Mr. President will Mr. HICKENLOOPER. Before the national law is. However, there is a the Senator yield? Senator goes to his next question, I point generally recognized procedure and form Mr. HICKENLOOPER. I yield. out that in the discussions in the com- and system of evaluation, to the effect Mr. MONRONEY. I compliment the mittee and with Members of the Senate that we must give value for property distinguished Senator from Iowa for his in connection with these amendments- seized. That principle is pretty well very illuminating and thorough study I am sure I speak without fear of con- recognized.
and presentation of this issue. It tradiction by committee members in con- Mr. MILLER. In other words, we strikes me if our aid is to mean anynection with the intent of this legisla- want that procedure to apply with re- thing it will have to be used to make a tion-it was believed that, if there spect to damages which arise under a country self-sufficient. The Senator should be any technical legal failure of nullification of a contract.
gave us a graphic illustration when he any kind in connection with these Mr. HICKENLOOPER. Yes.
said that a foreign exchange drain that
cost Argentina $220 million a few years Mr. MONRONEY. Is that not worse therefore, the companies have no rights ago has been cut to $75 million by the than expropriation? Labor, know-how, in them, and that the Government can great assistance that has come from techniques, and machinery have been nullify the contracts. The word “nullifiAmerican oil companies.
moved into Argentina, at the invitation cation” is used. It is my impression that these con- and request of that country, is now taken However, at the same time, the Govtracts were arranged at the convenience without any alternatives being offered in ernment exercised the sole right of taxof the Argentine Government, knowing the way of compensation. Argentina ation on their property and said that it their fetish for preserving for them- land, previously worthless, might now be would retroactively tax the property unselves their mineral rights, and that in worth millions of dollars, yet these oil der contract. That was illegal. Of order to accommodate the Government companies would receive no compensa- course, if the contract was illegal, the of Argentina, the oil companies said, tion?
taxes are illegal. There is no provision “We will contract with you. We will Mr. HICKENLOOPER. The land it- for taxes. But it depends on whose ox find the oil, if we can find it, and then self probably is not owned by the oil com- is being gored, as they cast their eyes we will deliver it to you at a price that panies. I think the operations are on an upon the interpretation of the contract. will be far below the market price.” employment or contractual basis, as I Mr. MONRONEY. Can the Senator That price was far below the price of tried to point out; and under the agree- from Iowa assure the Senator from the state-owned oil company.
ments, at the end of the leasehold or Oklahoma and other Members of the Mr. HICKENLOOPER. Yes; the contractual period, the property would Senate that even if the language in the Senator is absolutely correct. However, eventually revert to the Argentine Gov- amendment does not specifically include it really goes beyond that. The state- ernment.
the Alliance for Progress, it is the inowned oil company had been attempting Mr. MONRONEY. The producing well tention of the Senate, in referring to for years to develop oilfields. They had would be left intact for the benefit of any other law, that those laws authorizdeveloped a little oil here and there, but the country that had invited the oil ing our investment in the Alliance for they did not have the money, and they company to come in. The oil company Progress would be affected, and that did not have the techniques or the would be paid for its labor. The ar- the amendment would not only emknow-how or the competence to do it. rangement would be a labor contract. power, but would in fact be a direction They invited the American oil companies Mr. HICKENLOOPER. That is cor
That is cor- to the Chief Executive that under this to come in and look over the field. They rect.
set of circumstances the refusal to honor then entered into a contract which was
Mr. MONRONEY. It would extend a just debt would bring into force the in all probability one of the most ad- for several years, to compensate the full effect of the Senator's amendment, vantageous oil contracts ever entered company not only for its risk investment, even though it involved direct American into. I happened to be down there after but also for its labor and machinery.
aid? the contract had been in effect for 2 Mr. HICKENLOOPER. It is a produc- Mr. HICKENLOOPER. The Senator years. I talked with Argentine officials tion contract.
is correct. The amendment refers to and with private individuals. Every- Mr. MONRONEY. The companies the AID programs; and the Alliance for one was delighted with it. They were
They were took the greatest risk, it seems to me. Progress is a part of the aid program getting oil cheaper than they could pro- The Senator is absolutely correct. The complex of the United States. It refers duce it themselves.
amendment seems sufficient to cover this to the Alliance for Progress just as much Mr. MONRONEY. And they were sav- situation, but does it apply to the Alli- as it does to any other aid program ing foreign exchange.
ance for Progress loans as well as to which is in operation anywhere in the Mr. HICKENLOOPER. Yes; they other aid which is purely and exclusively world. were saving foreign exchange. I have American?
Mr. MONRONEY. I thank the Sentried not to be extravagant in my state- Mr. HICKENLOOPER. It does. It ator from Iowa and compliment him on ment in connection with what I have applies to any act under which we oper- his fine presentation. said. I have tried to underplay, rather ate.
Mr. HICKENLOOPER. I thank the than overplay it, but there is much com- Mr. MONRONEY. Even though the Senator from Oklahoma for helping to petent authority which declares con- act authorizes the placement of invest- develop the basis and effect of the fidently that if the Argentine Govern- ments within a consortium such as the amendment. ment had met its commitments and had Alliance for Progress?
Mr. CARLSON. Mr. President, will paid for the oil as it was received, prob- Mr. HICKENLOOPER. That is the in- the Senator from Iowa yield? ably at the end of this year it would have tent.
Mr. HICKENLOOPER. The Senator been self-sufficient in oil.
Mr. MONRONEY. I think this is im- from Kansas is a member of the ComMr. MONRONEY. Reinvestment of portant. Even if a court should per
portant. Even if a court should per- mittee on Foreign Relations. He can the payment for the American-produced haps say that it is not, the Senator testify in his own right as to the intent, oil to find new sources
knows, and it is cited in the earlier re- because he, too, labored on the amendMr. HICKENLOOPER. And new de- ports concerning the act that it is our ment. velopment.
desire to assist countries by making them Mr. CARLSON. The Senator from Mr. MONRONEY. That is correct. self-sufficient, but the act imposes upon Oklahoma raises an interesting point as
Mr. HICKENLOOPER. The Argen- the Chief Executive of the United States to whether the Alliance for Progress tine oil fields—the Senator from Okla- the obligation to take action of his own might not be a part of our foreign aid homa represents, in part, an oil-produc- accord when there is a violation of the program and therefore not be covered ing State, so I will not attempt to tell spirit of foreign aid, which we have so him how an oil field is operated-are in hopefully extended to so many nations guished Senator from Iowa has worked a peculiar situation, so I am told. The oil of the world.
not only at this session but in previous fields and wells require constant atten
Mr. HICKENLOOPER. The Senator sessions. tion and highly skilled know-how. It is
is correct. The President has power to The truth is that title VI of the act is not like putting a hole down in the do that in his discretion.
the Alliance for Progress. There was ground and from then on not paying Mr. MONRONEY. There is no ques- never any question in committee that much attention. Oil wells require contion about it.
the Alliance for Progress was covered stant attention, Oilmen could probably Mr. HICKENLOOPER. Two interest- in the Senator's amendment. describe the situation in more detail: I ing things have begun to develop.
Mr. HICKENLOOPER. There can be cannot. But that was one of the troubles. When people begin to scheme how no question that the Alliance for ProgThe Argentine Government did not know they can take the property of someone ress is an integral part of the entire inhow to handle the wells. The wells are else, they develop some interesting ternational aid or assistance program. now producing oil, but the Government is theories.
Mr. CARLSON. If there had been any not paying for it. They allowed Ameri- The Argentine Government is now at- question, it would have been well taken can capital and know-how to be invested tempting to say—this was a political care of because, as the Senator from to the extent of $200 or $300 mil- maneuver in their political campaign, Iowa has stated and I want the RECORD lion, and are now proposing to confiscate that the contracts which were entered to be clear—there was no division of and talk about settlement later.
into in 1956 and 1957 were illegal; that opinion in the committee, among any of its members, as to what we thought was assistance is provided under this or any other Mr. HICKENLOOPER. And also the the meaning of the language; and what
Act when the government of such country telephones. we wrote into the language is what is or any government agency or subdivision
Mr. LAUSCHE. Yes, also the telewithin such country on or after January 1, phones and other public services. In the known as the Hickenlooper amendment.
1962We wanted it to be all inclusive. We
(1) has nationalized or expropriated or
statement the Senator from Iowa made a wanted it to be administered on that seized ownership or control of property owned
few minutes ago to the Senate, he said: basis.
by any United States citizen or by any cor- The plight of the Government-run railI pay my compliments to the distin- poration, partnership, or association not less roads provides a good example of the kind of guished Senator from Iowa for his con- than 50 per centum beneficially owned by economic chaos which has been allowed to tinuing efforts in behalf of protecting United States citizens, or
develop. The volume of freight carried has American investors who, we hope, will go
(2) has taken steps to repudiate or nullify fallen from 60 million tons in 1942 to less into other foreign countries and help to
existing contracts or agreements with any than 30 million tons; yet in the same period, develop them on a private industry basis.
United States citizen or any corporation, the number of railroad workers has climbed
partnership, or association not less than 50 from 90,000 to over 225,000. The result is The Alliance for Progress is one of our
per centum beneficially owned by United an annual deficit of some $300 million which finest programs, and this is the type of States citizens, or
the Government is forced to cover. amendment we need to protect private (3) has imposed or enforced discrimina
Mr. HICKENLOOPER. That is the industry, and we hope it will.
tory taxes or other exactions, or restrictive Mr. HICKENLOOPER. I thank the maintenance or operational conditions, or
inevitable result that has so frequently Senator from Kansas. It is not my in- has taken other actions, which have the come from government takeovers and tention to protect any one individual
effect of nationalizing, expropriating, or government operation of what should be from any other individual. What con
otherwise seizing ownership or control of private enterprise and private business.
property so owned. cerns me, and I am sure what concerns
Mr. LAUSCHE. Am I correct in unthe Committee on Foreign Relations and I concur in the statement of the Sen- derstanding that in 1942, 90,000 workers the entire Senate, is that American in- ator from Iowa that if by chance this
ator from Iowa that if by chance this handled 60 million tons of freight, but vestors who are invited to go into other language is not found adequate to reach
language is not found adequate to reach after the Government there took over countries and are encouraged to develop the Alliance for Progress, the commit- the railroads, the number of railroad land by contributing their own capital, tee intended that it should be reached workers increased to 225,000, but they know-how, and risk, and will do other and that the President should not extend
and that the President should not extend handled only 30 million tons of freight? things which will add to the basic ex- aid either directly to countries or indi
Mr. HICKENLOOPER. That is corpansion of those countries that are less rectly to countries through the Alliance rect, according to information which developed, will receive fair, equitable for Progress.
I have received and which I believe corhonorable treatment, by any kind of Mr. HICKENLOOPER. Yes.
rect. That is a fantastic situation, but moral and legal standards which we all
it is stated to be the case.
There has been some rumor-although recognize as just. We want equitable We want equitable I do not allege this to be a fact, because
Mr. LAUSCHE. It is said by certain treatment for them.
I do not know—that certain Government labor leaders that unless certain things The amendment is not an attempt to officials in handling the program have
are done in the United States, our Govguarantee profits to any company. It been thinking about a device under
ernment should take over the U.S. railis not an attempt to obtain for any
which our aid funds would be put into roads. I wonder what would happen American company any undue conces- an international pot, and when that in
if that were to be done in the United sions. It is merely an attempt to
ternational pot distributes the money, it states. In my judgment we would folguarantee that their investments, their property, their efforts, their techniques within a certain country, and in that way
will not be affected by expropriation low the same course-led by the devil
within a certain country, and in that way that has been followed in countries that and know-how, will not be permitted to
an attempt might be made to avoid the have tried to socialize the public utility be used in a country under the guise of impact of this amendment.
services. a fair contract or a fair proposition, and I say I do not know that is the case,
Mr. HICKENLOOPER. In almost once they have developed something that is worthwhile, have the government of heard rumors that that is one device
and I do not allege that it is;
but I have every instance—and I know this occurred
heard rumors that that is one device not only in Argentina, but also in a great that country, under the claim of a takwhich has been discussed as a means of
many other countries—when the goving for government purposes, take the creation of those people without adequate looper amendment and still getting the political pressures getting around this so-called Hicken- ernments took over those businesses,
on the legislative and full compensation. money to some of these countries,
bodies and the other political bodies in Mr. LAUSCHE. Mr. President, will through an international intermediary or
those countries forced an increase in the Senator from Iowa yield? pot or account.
the number of jobs in those industries. Mr. HICKENLOOPER. I yield. Mr. LAUSCHE. As the Senator from
I merely wish to say to all and sundry It was said, "Put this man to work” or in the Senate and in the State Depart. and thus the employment rolls became
"Put this political henchman to work”; Iowa knows, I also am a member of the
ment and elsewhere that of course that filled with political henchmen, until the Foreign Relations Committee; and it is
would be a most inexcusable subterfuge my conviction that in the drafting of this section, with the amendments which
and avoidance of the clear intent, not result was as in the case of the Argenonly of this legislation, but also of the freight has decreased from 60 million
tine railroads, on which the volume of have been offered to it at this session, it only of this legislation, but also of the
will of the Senate itself, in my judgment. tons in 1942 to less than 30 million tons, was the intention of the Foreign Relations Committee to provide protection Department is attempting to do that;
I do not say that anyone in the State although in the same period the number to American investment: first, against but those rumors have been going around. 90,000 to more than 225,000 who now
of railroad workers there increased from expropriation; second, against unlawful violation of contracts; and third, against
Mr. LAUSCHE. I hope that is not handle only a little more than one-third
true. indirect expropriation through the im
of the amount of freight formerly hanposition of taxes or other exactions and
Mr. HICKENLOOPER. So do I. dled by the much smaller number of emexcises by foreign governments. I think
Mr. LAUSCHE. I believe the provi- ployees. A similar development has oca reading of subsection (e) will disclose
sions we have written into the bill con- curred in very many places in the that to be the fact.
template aiding the countries to which world; and it seems that, inevitably, I know that the Senator from Iowa, in
we are sending help and contemplate when the government takes over, the attempting to make this provision all
insuring the doing of justice to the Amer- political pressure to create a job for embrasive, insisted upon including, as
ican investors whom we are encouraging “good old Joe who worked for us down new language in the bill, the following, to make investments abroad.
in the third precinct" has its effect, and which has pertinence to what the Sena
I should like to have a discussion with employment is thus increased greatly, tor from Oklahoma has said: "or any
the Senator from Iowa about another but inefficiency also develops. other act.”
point. He has pointed out the bankrupt Six or seven years ago, when I was That addition and the others will make condition of the Argentine economy be- visiting in one of the countries of Latin this part of the act read as follows: cause of the governmental ownership of America, I talked with the president of
(e) The President shall suspend assistance the railroads and the oil mineral mines that country, which 4 or 5 years thereto the government of any country to which since 1958.
tofore had taken over the railroads and