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The 75 percent in credit is to be under Mr. FULBRIGHT. I do not know how should stand on its own feet. We should written by the Export-Import Bank, long ago those transactions were made. not allow the prejudice which has acwhich is financed by American money. They were also arranged on somewhat cumulated against foreign aid to be in
I am not proposing this evening any- similar terms-not 5- or 10-year terms, jected into our consideration of this prothing which would interfere with the but relatively short terms.
posal, which deals with the sale of wheat proposed wheat sales and corn sales to In the case of both U.S. wheat and corn. Most of the Senators I have Russia, if the sales are made for cash, and Canadian wheat, it is generally heard speak who are interested in the If they are made for gold, as the Senator expected that the terms will pro- sale of wheat and corn—and many Senfrom Missouri points out, and as he vide 18 months for the three quarters ators are—are interested in having it thought, and as I thought the sales of the remainder to be sold. All the Ex- sold for part cash and part short-term would be—and we listened to the same port-Import Bank will do, for a fee, will credits. No long-term credits are intestimony in the Committee on Foreign be to insure for the payments. They volved. Relations, namely, that the transaction have already done this, as the Senator But it seems to me that this amendwas to help with the balance-of-pay- has indicated, according to the commit ment, which might be a complete obments problem—my amendment will not tee staff memorandum which I placed in stacle to the sale of our wheat and corn, interfere with any cash sale; it would the RECORD, and also in the answers to would be very unwise. So I hope the not interfere with any short-term pri- questions which the Senator from South Senator from South Dakota will not vate credit extended by American banks Dakota himself submitted to the Export- press for its inclusion in this bill, for the or by exporters who want to supply the Import Bank. This procedure has been bill is already badly overloaded with ircredit.
followed twice in the case of Yugoslavia relevant provisions, and the bill is now My amendment would not interfere and also in connection with many other large enough and complicated enough as with a sale if it were to be repaid in countries.
it is. It has been emasculated to the some Russian-made goods which could Mr. MUNDT. No other Communist- point where we can scarcely recognize be converted into American currency. bloc countries.
the bill for what it is intended to be, for But I do not propose to start financing Mr. FULBRIGHT. No; we refused to now the bill deals with fish problems and both sides of the cold war at the same sell to them. There have been many many other matters unrelated to foreign time with American money. I do not speeches on the floor, some for and some
aid. So I hope the Senator from South propose that we should permit the use of against the wheat deal. As I recall, one
Dakota will admit that this amendment American credit to pick up the possible was made by the distinguished Senator
is not related to the foreign aid program, bad debts of Russia and Hungary in a from Kansas [Mr. CARLSON], and an
Mr. MUNDT. I most definitely conpurchase of this kind. I do not want to other by the Senator from North Da
sider that the amendment is related to force Americans to underwrite the bad kota, or perhaps it was the Senator from
the foreign aid program. faith and the bad credit of Communist South Dakota-not the senior Senator
Mr. FULBRIGHT. In what way? dictators. from South Dakota (Mr. MUNDT], but
Mr. MUNDT. Because it calls for a Mr. FULBRIGHT. Mr. President, will the junior Senator from South Dakota
determination of whether, for the first the Senator from South Dakota yield? [Mr. MCGOVERN], approving these sales.
time in 15 years of providing foreign aid, Mr. MUNDT. I yield. This announcement is one aspect of the
we want to proceed on the basis of proMr. FULBRIGHT. The Senator transaction. If I am properly informed, viding grain and other products through speaks of a loan. To be accurate, this the balance pays 5 percent. I believe public American credits to the Commu
nist bloc countries or whether we wish is the way the transaction would work: the memorandum states 5 percent. Private banks in New York would handle Mr. MUNDT. I believe the Senator is
to limit our aid to the countries of the
free world. most of this deal by making loans to correct about the rate. grain companies in this country. Let us
Only a short time ago the Senate
Mr. FULBRIGHT. Part of this pays use Cargill as an example. Cargill is one for the insurance. I understand that the
adopted the Cooper amendment, which of the large grain dealers. The bank Senator disapproves of such sales.
states that perhaps we have given our would make an interim loan for the
aid too long to the free world countries. I notice that in his amendment he pro
Mr. FULBRIGHT. That amendment financing of the transaction. The terms
The terms vides a limitation that it will apply only would be 25 percent down, and the re- to the purchase of grain or any other
does not contain any such provision. mainder in 18 months. One-third of the agricultural commodity. Apparently he
Mr. MUNDT. Yes, it does, it pro
vides that a study shall be made, and balance would be paid every 6 months. does not want the amendment to apply to What the Export-Import Bank would do the purchase of machine tools of similar
that if it is found proper to end our for
eign aid by the end of the fiscal year would be, for a fee, to insure payment.
products. Is it not true that in the case of certain
1965, it is then to stop. Am I correct in
Mr. MUNDT. As the Senator knows, sales of grain by Canadians to Commu- we have not been shipping such articles
my understanding of the Cooper amend
ment? I note that the Senator from nist-bloc countries, the Canadians have to Russia.
Kentucky is nodding his head in enthucome to New York and have used either
Mr. FULBRIGHT. At any rate, I point siastic affirmation, so I am sure I am the Export-Import Bank or a private out that I have no particular interest in bank—that is, American capital—to wheat. However, I do approve of selling
correct in my understanding of his
amendment. underwrite the insurance payment of the it to the Communist bloc, rather than to Mr. DODD. Mr. President, will the short-term credits when they come due? Germany or some other free country Senator from South Dakota yield?
Mr. MUNDT. I believe they have used which then will be able to sell it to the Mr. MUNDT. Mr. President, I wish to private capital. I am not aware that Communist bloc, and thus make a profit
Communist bloc, and thus make a profit have the Senate proceed to act on my they have used Export-Import Bank on it. I believe we have been very im- amendment. capital. My amendment does not pre- provident in allowing our prejudice to Mr. DODD. Mr. President, let me vent private banks extending credit to override our business judgment.
point out to the Senator from South Russia.
But I point out that this amendment Dakota that I wish to speak in support Mr. FULBRIGHT. Is it not true that does not relate to aid. The other night of his amendment. there has been no default in the case of the Senator said we make some great Mr. MUNDT. Very well; I yield to the Canadian wheat?
concession by negotiating a price for Senator from Connecticut. Mr. MUNDT. Not yet. After all, there shipment in American bottoms. How Mr. DODD. Mr. President, I realize would be precious little time for default ever, that is not a concession; and this that the Senate is very close to voting as yet. Most of the wheat is not yet on amendment does not relate to foreign on this question. the ocean.
aid. The amendment has nothing to do However, preliminarily I wish to emMr. FULBRIGHT. But substantial with the bill. We have already loaded phasize the point that earlier this year sales were made to China 2 or 3 years down the bill enough with irrelevant pro- the Senate made a complete reversal of ago. visions.
the position it previously had taken on Mr. MUNDT. Most of those were on I do not think there is anything to the the question of aid to Communist couna long-term credit basis. There has amendment of the Senator from South tries. been no opportunity for default on the Dakota; but if there is, I believe it should Last year, and for many years therecredit for those transactions.
be fought out on its own merits, and tofore, strenuous efforts were made here CIX1378
to block the giving of our aid to Com- credit of the American taxpayers is in SEVERAL SENATORS. Vote! Vote! Vote! munist countries; but each time those defensible.
Mr. MUNDT. Mr. President, I thank efforts were made, all the forces of the Mr. DODD. Very well, I am sorry I the Senator for his contribution. I have administration in power and of the Sen- misunderstood the Senator's statement. waited a long time to get the floor to exate leadership were marshaled against Mr. President, it is said that we should plain my amendment. It is only the secus.
approach these matters from the stand- ond speech that I have made on the subI remember fighting the battle when point of a businessman.
ject of foreign aid. I am a stubborn I was a Member of the House.
Well, Mr. President, my father was a Dutchman, and I do not believe that I Dire predictions were made in regard businessman, and I was raised in New shall be stampeded into quitting by Sento what would happen to our country, England, where all are taught how to ators shouting “Vote.” I believe I can and even to our system of government, make money.
restrain myself to a few more statements if Congress voted such a restriction. However, I did not make my share; in- if we continue to have the fine attention Those arguments always prevailed, stead, I became a Senator.
that we have had up to the present hour. and in that struggle I found that I was But, I am as sure as I am standing I know and all Senators know that their never on the winning side.
here now that this is the wrong policy constituents and the public generally Only last year, those of us who sought for our country at this hour.
will be interested in the important and to stop the giving of such aid met with I think it debases us to argue that Rus- significant vote which might create a à crushing defeat here on the floor of sia needs wheat and we need gold. whole new departure in the foreign aid the Senate.
I would rather give the wheat to them, and trade concept of this country. I Last year I said—and my statement is and send it there in American bottoms, want Senators to have all the informain the RECORD—that although we were on ships flying the American flag, if the tion that I have. I consider our decision defeated, that would be the last year we Russian people are hungry.
on this amendment one of the most imwould be defeated, because the Ameri
If they are hungry, of course, we are portant and far reaching to be made in can people would never endure another glad to help feed them and to give it to the current session of this 88th Congress. year of giving our aid to Red nations- them for that is the habit of the generous Mr. President, I ask unanimous conaid which has proved a gigantic and a American people.
sent to have printed at this point in the complete failure.
But when we sell the wheat to them, we RECORD a letter addressed to Hon. HarI said that the advocacy of such aid should let them pay a fair price for it, old F. Linder, President of the Exportwould collapse of its own error.
even perhaps a little less than others pay. Import Bank, Washington, D.C., by Pat This year, the familiar effort to stop
However, when we aid them in this Holt, acting chief of staff of the Comsuch aid was made again; but the oppo- way, let us obtain from them some con mittee on Foreign Relations, and the sition vanished like an Arab in the night. cessions. Why do not we say to them, reply by Mr. Walter C. Sauer.
Thus far in the current debate, I have "In return for receiving our wheat, you There being no objection, the letters not spoken at all on this issue. I wanted must stop causing provocations on the were ordered to be printed in the RECother Senators to take the lead.
Berlin Autobahn. You must stop im- ORD, as follows: And I was happy that other Senators prisoning innocent American citizens
EXPORT-IMPORT BANK took up the fight. and you must stop committing aggres
OF WASHINGTON, The Senator from Wisconsin [Mr. sion against us and our friends."
Washington, D.C., November 14, 1963. PROXMIRE] and many other Senators
But, the policy seems to be not to re
Mr. PAT M. HOLT, whom I could name did far better than quest or require concessions from them, Acting Chief of Staff, I could have done with it.
but always to provide concessions from Senate Committee on Foreign Relations. Our amendments—so often defeated us. I tell Senators that if we continue I am replying to your letter of yesterday, in
DEAR MR. HOLT: In Mr. Linder's absence and blood bespattered—were embraced on in the way we have been going, catas
which you pose seven questions with respect this time without opposition; and the trophe will follow.
to Export-Import Bank guarantee operations. solemn pronouncements of the past
Let us not argue that the Canadians The answers to the respective questions are about the necessity of such aid were are selling wheat, so why should we not as follows: heard no more.
get in on the deal, or that someone else 1. The Export-Import Bank has two differI do not want this sudden and amaz is selling wheat, and why should we not ent programs under which it guarantees ing reversal of form to pass unnoticed, get in on the deal. Every time we sell credits extended by U.S. commercial banks
for financing U.S. exports. One program for it is proof that even the most sophis- an ounce of grain for profit-for gold—to ticated and highly placed experts can be our enemy, we are weakening the free large-scale export transactions, such as the
covers agricultural commodity and other totally wrong, and that once in a while world.
sale of jet aircraft. The other program inthe plain and simple folk in this land
I am glad that the amendment has volves the export of capital goods or equipwho see things only in terms of either been offered. I still do not believe it is ment of relatively modest amounts. black or white can be totally right. I as clear as I would like to see it. I do
In the case of agricultural commodities thank God, Mr. President, that I am one not think the people of our country really and jete aircraft, the Export-Import Bank of them.
understand what we are doing. Because guarantee the U.S. commercial bank for the Yes, I see fundamental things as either we were first told that it was one transac- by the commercial bank because of failure of
full amount of loss that might be sustained black or white, and I hope I do so to the tion, one deal, for cash on the barrel
the foreign buyer to pay his debt-whatend of my life.
head. We were told that they would pay ever may be the cause of the buyer's failure I hope that now it will be recognized us and that we would get rid of some to pay. Thus, this guarantee may be dethat sometimes those who proceed on surplus wheat. We would get some gold scribed as a “100-percent all-risk guarantee." that basis can be totally correct. with which we could reduce our defi
It should be noted that, in the case of agri
cultural commodities, the 100-percent guarTonight, the Senator from South ciency in the balance of payments. We
antee to the commercial bank constitutes the Dakota proposes, on the eve of the final now find that that is not the situation at
full value of the transaction since there is action of the Senate on this bill, that all. It is not one deal. It is many deals.
no requirement for any cash payment by the this amendment be adopted.
Sales of wheat and corn are proposed to buyer or any participation by the seller. In I shall vote for the amendment, but I be made to Hungary, Bulgaria, and the case of jet aircraft, however, the 100am troubled when he asks, “Why do we Rumania.
percent guarantee to the commercial bank not sell our wheat for gold?” I think The deal is not for cash on the barrel- constitutes only about 65 percent of the that position debases us. head but a credit arrangement of 18 value of the transaction since the buyer is
required to make a 20-percent cash payment Mr. MUNDT. Mr. President, the months or more. That is not a short
and the seller is required to take a 15-percent Senator from Connecticut has inad- term loan in any banking practice at all.
unguaranteed participation. vertently misquoted what I said. I have The Export-Import Bank would guar
In the case of the ordinary sale of capital not said that we should sell our wheat for antee the loan.
goods or equipment, the Export-Import gold. I said that to sell it for gold would
So the American taxpayer is stuck
Bank guarantees the U.S. commercial bank be bad enough, because it would put us through slick high finance deals.
for the full amount of loss arising from soon the side of aiding the enemy. But I Nothing but bad can come from the
called political risks and for part of the loss also said that to sell the wheat at the transaction. We will regret it if we pur- (ranging from 50 to 75 percent depending on expense and through use of the public sue that policy.
the term of the financing) which results
from a credit failure Thus, this guarantee handled by the Maritime Administration. Relations Committee has said about the may be described as a “100-percent political For your information, I am enclosing De- nature of the transaction. Question No. risk and a partial credit risk guarantee." partment of Commerce Bulletin No. 883, 5 and the answer by Mr. Linder, are as Here again it should be noted that the guar dated as of yesterday, dealing with the mat
follows: antee to the commercial bank is only with ter of grain shipments to the Soviet bloc. respect to the financed portion—that is, the
7. The answer to question No. 5 embraces
5. In the case of the sale by U.S. exporters amount remaining after the buyer has made the answer to this question; that is, if for of corn and other grains to Hungary, the a cash payment of 10 percent to 20 percent any reason-whether political or commer
part to be played by the Export-Import and the seller has taken at least a 15-percent cial—the Hungarian obligors do not pay the Bank is as follows: The Export-Import Bank nonguaranteed participation.
obligations evidencing the debt, the Export will issue its guarantee to the U.S. comIt might be mentioned that in the case Import Bank is obligated under its guarantee mercial bank financing the transaction of the 100-percent all-risk guarantee the to make good to the U.S. commercial provided the transaction meets certain cricommercial bank collects interest on its bank which has financed the obligations. teria. Hungary must make a cash payment funds at a rate appreciably lower than in As indicated in the answer to question No. 1, of 25 percent of the value of the purchase the case of the 100-percent political risk this is the same undertaking that the Export- contract prior to shipment of the grain. and partial credit risk guarantee. Import Bank enters into with respect to
The balance of 75 percent (excluding the In the fiscal years 1962 and 1963 the Ex sales of agricultural commodities and jet
cost of freight when shipment is made on port-Import Bank issued $267.3 million of aircraft in any country. As is further
a foreign-flag vessel) is payable over a 100-percent all-risk guarantees and $178.7 pointed out in the answer to question No. 1, period of 18 months with one-third payable million of 100-percent political risk and if the loss results from a political risk as
every 6 months. Interest on outstanding partial credit risk guarantees. Thus, for the for instance "any political changes in the
balances is payable semiannually at the period involved, the percentage of 100-per- country to which the credit is extended,” rate of 5 percent per annum. The obligacent guarantees was 60 percent as against the Export-Import Bank covers the loss not
tions evidencing the 18-month credit are 40 percent for partial gaurantees. only in the case of the proposed guarantees
to be the obligations of the Hungarian For2. Since 1948 the Export-Import Bank has of grain sales to the Soviet bloc but under eign Trade Bankissued two commercial bank guarantees for all of its guarantee activities.
A Communist government instituexports to Communist bloc countries. These
tiontwo guarantees amounted to $536,649 and
WALTER C. SAUER. covered the sale of capital goods to Yugo
backed by the undertakings of the National slavia. It might be mentioned, however,
Bank of Hungarythat during the same period the Export-Im
NOVEMBER 13, 1963.
A Communist banking institutionport Bank authorized $105 million of direct Hon. HAROLD F. LINDER, credits to Yugoslavia to finance U.S. capital
President, Export-Import Bank of Wash and the Minister of Finance of Hungarygoods and equipment.
ington, Washington, D.C.
One of the functionaries of the Com3. The answer to question No. 3 is em
DEAR MR. LINDER: A member of the Combodied in our answer to question No. 1.
mittee on Foreign Relations has requested munist dictatorship in charge of Hun4. In the case of capital goods and equipthat I transmit the following questions to gary.
Continuing to read from the letter: ment, the guarantees of the Export-Import you. He asks that the answers be furnished Bank cover credit sales ranging from 1 to 5 in writing by noon, Thursday, November 14.
The issuance of the guarantee by the Exyears. Large jet aircraft carry a term of 7
1. Are all Export-Import Bank guarantees port-Import Bank is further conditioned years. In the case of agricultural commodi covering sales to free world countries made
upon the seller of the grain having obtained ties, the guarantees of the Export-Import for 100 percent of the full amount of the
an export license from the Department of Bank cover credit sales on terms up to 18
transaction? If not, what percentage are for Commerce. months.
100 percent; what percentage are for 75 per5. In the case of the sale by U.S. exporters cent; what percentage for some other per
I ask Senators to listen to the next of corn and other grains to Hungary, the centage of coverage?
paragraph, because it is the one that part to be played by the Export-Import Bank
2. Please provide a list of all guarantees Senators will talk about back home, and is as follows:
covering sale to Communist bloc countries Senators should wish to consult with The Export-Import Bank will issue its
which have been made by Export-Import their consciences before they really deguarantee to the U.S. commercial bank fiBank since 1948.
cide to vote to endorse that kind of a nancing the transaction provided the trans
3. Are all guarantees covering sales to
new departure: action meets certain criteria. Hungary free world countries total guarantees against must make a cash payment of 25 percent
any contingency or circumstance or are some When the foregoing conditions are met, of the value of the purchase contract prior of them limited to specified risks or types the Export-Import Bank guarantees the comto shipment of the grain. The balance of of risks? If so, what percentage of each? mercial bank for the full amount of the loss 75 percent (excluding the cost of freight 4. Are all Export-Import Bank guarantees
that the commercial bank may sustain for when shipment is made on a foreign-flag covering sales to free world countries made
failure of the Hungarian obligors to pay vessel) is payable over a period of 18 months to cover 18-month period? If not, what their debt whatever may be the cause of the with one-third payable every 6 months. In percentage are for 18 months? What per- failure to pay. terest on outstanding balances is payable centage for a longer coverage? What per As indicated, the loan could be as semiannually at the rate of 5 percent per centage for a shorter coverage? Please in- much as 75 percent of the value of the annum. The obligations evidencing the 18 dicate how much longer or how much shorter month credit are to be the obligations of the are the periods of coverage which differ from grain, since that is the maximum amount Hungarian Foreign Trade Bank backed by the 18-month guarantee.
the commercial bank would finance on the undertakings of the National Bank of 5. Please provide the full terms of the credit. And remember this could inHungary and the Minister of Finance of agreement on the purchase of corn by Hun volve 75 percent of the entire proposed Hungary. The issuance of the guarantee by gary-especially the part played by the $250 million grain sales program to the the Export-Import Bank is further condi Export-Import Bank
purchase Communist bloc. tioned upon the seller of the grain having agreement. obtained an export license from the Depart 6. What is the law on waiver on shipments the Senator yield?
Mr. HUMPHREY. Mr. President, will ment of Commerce.
in American bottoms in event the guarantee When the foregoing conditions are met, by Export-Import Bank is made? If waiver
Mr. MUNDT. I should like to point the Export-Import Bank guarantees the com was made on our recent wheat and corn
out one other statement, and then I mercial bank for the full amount of the sales to Russia and Hungary, who granted shall yield. loss that the commercial bank may sustain the waiver and what percent was waived Senators may wonder what kind of for failure of the Hungarian obligors to from being carried in American bottoms? credit we are being asked to endorse. pay their debt whatever may be the cause Who requested the waiver?
What we are asked to do is to put the of the failure to pay. As indicated, this 7. Does this guarantee also cover losses loss could be as much as 75 percent of the from any political changes in the country
name of every constituent-every Amervalue of the grain since this is the maximum to which credit is extended? If so, is this à ican taxpayer-on the promissory note amount the commercial bank will finance normal guarantee?
guaranteeing as an endorser that Red on credit.
Russia will pay the note. Each taxpayer 6. The Maritime Administration, under
PAT M. HOLT,
becomes an endorser of the note and the jurisdiction of the Department of Com
Acting Chief of Staff.
becomes liable. Our constituents would merce, makes determinations on waivers for shipment on American bottoms for exports letter was received by Mr. Holt at noon
Mr. MUNDT. The answer to the become guarantors of the payment. financed or guaranteed by the Export
Before taking that action, we ought Import Bank. To the extent there may be today. I should like to read a portion of to look at the credit risk. Let us look waivers on wheat and corn sales to the the letter because it correctly authenti- at the credit repayment record of HunU.S.S.R. and its satellites, these are being cates what the chairman of the Foreign gary and Russia. Hungary has been in
the business of obtaining loans from us months up to 5 years-for export pur Mr. MUNDT. The record of repayfor a long time. She started back on poses. It is an insurance program, as ment is good because the Export-Import October 3, 1944. We had advanced a American as the Fourth of July and ap- Bank has not loaned money to Comtotal of $15,917,000 of credits to Hun- ple pie-insurance.
munist countries. gary prior to this new corn and wheat Today an article published in the Mr. HUMPHREY. They have loaned sales venture. The earlier credits were New York Times tells us that the Ger- to some poor credit risks. for the sale of oversea surpluses, but it man Government has sent trade mis
Mr. MUNDT. I wish that Hungary is the same kind of trade she is now sions into all the eastern bloc countries, would pay back the $900 million which engaged in in relation to surplus wheat. and yesterday signed up substantial is in default at the present time. The unpaid balance is over $9 million trade agreements with Poland and with Mr. HUMPHREY. The only thing as of now. We are not now asking them Rumania.
Rumania. They have had trade mis- I wish to say in reply is, it is easy to say, to pay the $9 million back before guaran sions in Czechoslovakia and Bulgaria. “If you sell this to Russia, it looks as teeing these new credits. We say, “We They have done hundreds of millions of though we are giving aid to Russia,” but will give you more credit and back it
dollars of direct business with the Soviet the simple truth is that we are going up with American taxpayers' money in Union, and many of the times they have to sell the wheat to somebody, somethe Export-Import Bank, and hope that
been selling American grain. They have where. We are either going to sell or you are a better creditor now than you insured it. It is insured. There is not trade with Russia and permit it to be a have been in the past.”
a single export of any degree that goes direct sale, over which we will have some We let them have the earlier money from Germany to any part of the world control; or sell to France, or to Italy, or at 238 percent interest, which is a
that is not insured. That has been the to Germany—which we have been dosmaller rate of interest than it costs the
secret of the German export policy. I ing—and they are going to sell to Russia. American taxpayer to carry the loan. know that the Senator from South
from South Their insurance companies will insure I also have the bad debt figures for
Dakota points to the record of unpaid sales. Every Senator knows that. Let Czechoslovakia and Yugoslavia. But debts.
us stop kidding ourselves. tonight I should like to mention Russia.
I challenge the Senator from South Every Senator knows that within the We have been loaning Russia money in one way or another since March 11, body, that Hungary, for example—a gov
Dakota to demonstrate to me, or to this past few months a number of sales have
body, that Hungary, for example—a gov- been made directly by Canada and Aus1941. The total amount advanced, not
ernment the Senator quoted as of 1944, tralia to the Soviet Union, both of whom including war loans, is $222,494,574, of
which did not happen to be a Communist are our allies. We also know that the which $205,709,633 remains unpaid. The
country at that time—has defaulted on Germans sold 450,000 tons of flour last rate of interest on those unpaid loans
a commercial transaction. I say—and I
I say—and I month to the Soviet Union. We know it is only 238 percent. We are charging
am prepared to back it up--that the was an insured program, exactly as this Russia today a preferential interest rate
Hungarians have as much of an interna- would be. cheaper than that charged our American
tional credit rating on a commercial Sometimes I wonder if we do not wish war veterans. transaction as any other country in the merely to give aid.
merely to give aid. I suggest that one Mr. President, I believe it was a good
world. One of the reasons for that is of the reasons we have a foreign aid prothing that we adopted we adopted the Cooper that they need the goods.
gram as big as this one is that Congress amendment. We should analyze where
Furthermore, the Chinese Communists is so involved in emotionalism that it we stand in the aid program. We are
have not defaulted upon the Canadians. cannot get down to do business. getting kind of mixed up. The last Polish purchase in Canada was
One of the answers to the aid program We have gone so far in relation to the free countries that we are now proposing
financed out of New York banks. The is to trade, to sell, to make some money depositors in the New York banks are
for a change, to do business. If we sell to pick up the tab for the Communist
American taxpayers; and if the New Russia some wheat, they may not have countries.
York banks go broke the Government of as much to spend for atom bombs. We are seeking to aid our enemies.
the United States has them insured. An old farmer up in South Dakota, I These unpaid loans are in addition to
There is insurance. There is insurance believe, said: the $11 billion of lend-lease that we gave
under the Federal Deposit Insurance to Red Russia. But, to be
I am willing to sell Russia anything it canBut, to be honest and
Corporation and under a host of other not shoot back. fair, we were fighting a war jointly to
policies. gether at the time. We decided that we
That makes good sense. He did not
Mr. MUNDT. To set the record get his mind cluttered up with the Conought to get back only about $1 billion
straight, that is paid for out of a fund of the $11 billion. They would not pay
GRESSIONAL RECORD. He had some sense created by insurance premiums paid for about what he was doing. He thought it it. We negotiated the debt down to $800
by the banks. million. They have not paid that
was much better to sell than to give it
Mr. HUMPHREY. The Export-Im- away. amount, and they will not pay for the
away. He thought it was better to sell port Bank insurance is paid for by the through American hands than to sell wheat and corn. American taxpayers will pay it if the Senate rejects my people who do the exporting. This is no
through a middleman. I believe the old amendment, because the taxpayers will gift.
farmer has more sense than the Senate. have become endorsers with Nikita
Mr. MUNDT. It is paid by American
Mr. MUNDT. The Senator from MinKhrushchev on his promissory note. taxpayers.
nesota has made his eloquent argument Mr. HUMPHREY. Mr. President, will
Mr. HUMPHREY. Not at all, let me to sell grain and get moving, to sell even the Senator yield? say to the Senator from South Dakota.
to Red countries, to Communist counMr. MUNDT. I yield to the Senator Mr. MUNDT. They have to make this tries, wheat and grain. That is not the from Minnesota.
up because Congress appropriates the point at issue. The question is whether Mr. HUMPHREY. The Senator from money to go in the Bank. We are talking we will underwrite the credit of the South Dakota has said that we have in about the insurance. We must appro- country which buys it, even if it is a Comtroduced a new concept into aid. I only priate the money to cover the Bank's munist country. That is what is indesire to say that what we are talking deficits.
volved. Many fine merchants in this about is trade. It is not aid.
Mr. HUMPHREY. The Export-Im- country have gone broke trying to sell I should like the Senator from South port Bank insurance is paid for like an too much to too many whose credit is no Dakota to recognize—and I know that insurance premium to the Prudential good. he does—that the Canadians have export Life Insurance Co. or the Metropolitan I submit what is in the record—the insurance. They have had it for years. Life Insurance Co. They will make
They will make whole history of America indicates that The Germans initiated export insurance money out of it. They are not losing a Communist promise on a promissory long before we did. The Export-Import money. The Export-Import Bank has a note or anything else is not worth the Bank has only recently engaged in ex record of making money for the Treas- ink with which it is written. port insurance at the insistence of Mem- ury on direct loans. The Senator from There is much difference between havbers of this body-and rightly so—both South Dakota cannot produce evidence ing an insurance policy paid for by preon what we call short-term loans and of losses on the aggregate total for the miums, by people engaged for profit in medium-term loans-anywhere from 18 Export-Import Bank.
the export business, and a program that
causes the taxpayers at home involun It so happens that I am the chairman It is not a question of gold, dollars, or tarily to shoulder the risk of bad faith of the International Finance Subcom- trade. It is a question of whether or not and the bad debts of Communist coun- mittee of the Banking and Currency it is wrong. Our critics can laugh, but tries.
Committee. This subcommittee has I am sure we are right. Mr. HOLLAND. Mr. President, will jurisdiction over the Export-Import It is time we talked about it. We are the Senator yield?
Bank. We held rather extensive hear- accused of talking in emotional terms. Mr. MUNDT. I yield.
ings earlier this year with respect to the I speak in terms of what is right or Mr. HOLLAND. Mr. President, I am powers and the duties of that splendid wrong, what is black or white. deeply disturbed by this discussion. I institution.
I institution. Its chairman is Mr. Linder, It interests me, it intrigues me, it comhave had many letters from many con- a patriotic American, who is as much forts me to know that I know of no labor stituents in my State protesting against interested in the security and safety of organization that has advocated this the sale of wheat to Communist coun- our country as any Senator in the Cham- bill. tries. I have obtained statements from ber at this moment. I believe it is about The little people of this country and those in authority dealing with this mat- time, Mr. President, that we stopped act of the world know better. ter, and I have tried to send back the ing as 100 separate Secretaries of State I know of no small-scale farmers-and official reasons to my people—that get- in the Senate. If there is need to cur- I live among them—who have advocated ting rid of the surplus and of the storage tail the obligations, the privileges, and it. problem created by that surplus would the rights of the Export-Import Bank, let The Connecticut Farm Bureau is better our balance-of-payments prob- the Senator from South Dakota intro- against it. lem; that the transaction shows to the duce a bill and have it referred to the Who is for the bill? world our tremendous productive capac- Committee on Banking and Currency. I I ask this in all charity. ity and raises our prestige.
will guarantee it an early hearing. Let The chamber of commerce, the bankThose answers have been given to me, us not-in what I might say is perhaps ers who had their meeting in this city, and there is some weight to them; in ad- the last gasp of Joe McCarthyism-pass are for it. Now I know many good dition that we are selling wheat to Ger- this amendment tonight, without con- bankers. many, and Germany is turning it into sideration, without hearings, without any I do not want to put a blanket indictflour, as suggested by the Senator from understanding of the international im ment on them. Minnesota. And that same wheat, in the plications of what we are about to do. I But I think it is interesting that the shape of flour, as processed, with added hope this amendment will be overwhelm- bankers and the chamber of commerce value attached, has gone on to Russia ingly defeated.
are the only groups of national signifiand other Communist places. I am SEVERAL SENATORS. Vote! Vote! Vote! cance that are for the bill. frank to say that I have not known that Mr. DODD. Mr. President, I know They want to make money. we were underwriting, in public credit, Senators are shouting “Vote!” This is When Lenin said that when we get three-quarters of the sale price of this a critical issue.
ready to hang the capitalists, they will wheat.
I do not wish to delay my colleagues. sell to us the rope with which to do it, Mr. MUNDT. I believe there was no I should like to go home, too. But I he was more prophetic than he thought reason for the Senator to know that, be- do not think there is any more critical he was. cause it was not announced until Novem- issue confronting the Senate.
And the chamber of commerce and the ber 5, and most of the correspondence If my mail is any indication, the people bankers association lend credence to his of the Senator, I am sure, preceded that expect us to carefully consider this issue, declaration. date.
and they do not expect us to shout "Vote, I am not interested in all the arguMr. HOLLAND. I am frank to say vote,” at 9:30, after a serious amendment
vote," at 9:30, after a serious amendment ments about interest rates and guaranthat that new fact creates a very disturb- has been offered by the Senator from tees. ing situation. South Dakota.
The question is the cause of freedom We have said "Let us not trade with What is wrong is the principle in against that of tyranny and slavery; and Communist governments. Let us cut off volved. Some day Senators will say this we are giving comfort to our enemies, at the purchase of tobacco from Cuba. Let is so, whether I am here or not.
a time when we are spending billions of us thereby destroy certain businesses in We are talking about our implacable dollars to resist them. Tampa. Let us put out of employment enemies, devoted to our destruction.
Historians will say, "What fools—they several hundred workers. And, at the We are talking about whether or not sowed the seeds of their own destrucsame time, let us not ship to them the to give them help.
tion." things which they need. Let us go I say we should not do it unless we can I urge my colleagues to vote for the further and insist that our allies not ship get something significant in return. All amendment. to Cuba the things which they need. Let the talk about whether the Germans do Mr. YOUNG of North Dakota. Mr. us go further and say that if our allies it or the Canadians do it does not make President, our trade with Russia is not do that, we will not let the ships that it right.
the question at issue. In the last 11 have gone into Cuban ports with this If we are right about this issue, if we years we bought $92 million more than material come into our ports.'
are the citadel of freedom, if we are ask we sold to them. Germany alone has How in heaven's name can we justify ing our people to pour out their substance had trade
had trade with the bloc countries this thing we are doing now as against to defeat this threat, on what ground amounting to $700 million in the last our fixed policy down there? I have can it be argued that we should give year. The question of whether we been seeking to defend it, and seeking to them aid in the guise of trade.
should trade with them is not involved; pass on explanations which sounded to I add one addendum to that thought: we have been. me as if they had some weight to them; If we could get something for the free This amendment singles out grain. but when it comes out here that instead world, I would be in favor of it.
That is the extent to which it would proof getting payment in gold we are in If we could get some concession, some hibit guarantees against credit. Why stead publicly financing a credit on the lessening of the tension in Berlin, some single out grain? Why not single out whole proposal by three-quarters, I be- cessation of the provocations and hostili
cessation of the provocations and hostili, industrial machinery? Why not refuse lieve that projects a decidedly weaker ties toward our men on the autobahn, to extend credit for that purpose? Why picture. I am glad the Senator from some way of stopping seizures of our leave in the restriction against grain South Dakota has brought this up. citizens such as Professor Barghoorn only? I cannot understand why grain
Mr. MUNDT. I thank the Senator for from Connecticut, if we could get some is the only one commodity to be dishis persuasive and pertinent support thing in Cuba-if we could get some con criminated against. Mr. President, I yield the floor.
cession, somewhere, that would be one Mr. MUNDT. Mr. President, will the Mr. CLARK. Mr. President, I apolo- thing.
Senator yield? gize to the Senate for withholding the But we continue to tumble head over Mr. YOUNG of North Dakota. I yield. vote on this matter for a minute or two. heels every day to give to them and get Mr. MUNDT. I should like to answer I rise in the hope that we can make our nothing in return.
that question. I think it is a legitimate decision without any undue emotion.
Mr. President, it is wrong.
question. The reason we singled out