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back into their normal orbits, they give off powerful bursts of pure light.

The core of the laser usually is a tiny, synthetic ruby red, silvered at one end to force the manufactured light through the other. Various types of gases also can be

used as the core of a laser.

Researchers across the Nation are working around the clock to develop lasers for military use.

Westinghouse defense center in Baltimore, like many other firms, is working on the project. And, like other companies, it is pouring its own funds into the race as well as government money. This year alone, Westinghouse has allocated $5 million of its own money for laser research-probably the greatest single effort of any firm in the country.

MESSAGE CARRIER?

Among other things, Westinghouse is attempting to send messages via laser beams. Because lasers have much shorter wave lengths than radio beams, many more messages could be sent on each beam. Theoretically, one laser beam could carry as many messages as all the radio frequencies in the world currently in use.

The difficulty lies in breaking or modulating the laser beams to carry messages or possibly producing sidebands which would serve as information carriers.

Laser communication also has military application because the beam can carry a message without detection unless the beam is interrupted.

In the case of radio, the message is radi

ated in all directions from a transmitter. Anyone within the circle of effective radio range can tune in the frequency if he has the proper type receiver.

Using a laser, however, all the energy is concentrated and focused on one point.

Since the beam is flashed only for a few mil

lionths of a second, it is virtually jamproof, since it must be blocked or intercepted with a physical obstruction between the source and the target.

Power requirements are fantastically lowered through the use of laser, since it requires only one millionth of the power to achieve the same results as radio equipment with the same output.

Radar applications of laser could provide

better range and accuracy than present techniques.

USED IN SURGERY

Linked to a telescope, the laser could be sighted like a rifle. The beam following the line of sight of the scope could direct a missile to a target with a minimum of risk to personnel in the field.

Because of their tremendous heat and energy, laser beams already have been used effectively in eye surgery to weld detached optic nerves to the retina. Since the beam can be aimed directly through the pupil of the eye, the need for many surgical eye operations is eliminated.

DEMANDS WHICH SHOULD BE MADE OF THE SOVIET UNION Mr. MILLER. Mr. President, Columnist John Chamberlain, writing in the Cedar Rapids, Iowa, Gazette, has thought-provoking comments on what the United States should demand in future dealings with Russia.

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I believe those points are well taken and should be read by everyone.

I ask unanimous consent that the article, entitled "Things We Should Demand in Future Dealings with Russia," may be printed in the RECORD.

There being no objection, the article was ordered to be printed in the RECORD, as follows:

THINGS WE SHOULD DEMAND IN FUTURE
DEALINGS WITH RUSSIA

(By John Chamberlain) The test ban treaty is now part of our world, and taken by itself I persist in thinking it a desirable thing. The chance that Russia might, in the absence of further atmospheric testing, beat us to producing an effective antimissile missile or a means of jamming military communications systems on a continental and oceanic scale

seems really remote. This may testify to my technological innocence, but I haven't seen anything yet that would indicate that either side is on the trail of either the abso

lute nuclear weapon or the absolute anti

weapon.

Furthermore, it is not in the cards that

the United States and the Soviet Union will ever fight an atomic war no matter what is done in the realm of further test

ing. At atomic struggle would bring two

sets of "overkill" into action-and the peo

ples who live at the ends of the earth, far and poisoned shambles of the east EuroContinent, would live to capitalize on the pean "heartland" and the North American disappearance of two monster world powers.

away from what would become the smoking

Assuming there is an iota of self-interest in Soviet Russia and in the United States, neither Khrushchev nor John F. Kennedy will ever press a button that would effectively hand the world over to the Red Chinese.

However, if the test ban merely recogmate, it exposes the United States to all mannizes the fact of a mutual atomic checkner of psychological dangers. We are al

ready hearing that there must be a further

relaxation of tensions.

The thought of this is alluring, but the terms are not defined. Tensions, we know by the example of people in madhouses, can be relaxed by the cultivation of illusions.

PEACE-LOVING SOUL

Or they can be relaxed on one side by exploiting the tensions of the other side. The danger is that the American peace movement, which has always been softheaded, will prove strong enough to win the day for a saftey-through-illusion victory.

As a peace-loving soul, I would gladly have my own political tensions relaxed. Then I could apply for a pleasant job covering the New York Mets. However, illusions have never appealed to me, and I should hate to lose that tense feeling merely because I have been put on the receiving end of one of Khrushchev's one-two punches.

It seems to me that in this time of incipient euphoria, the diplomacy of our country should take the precaution of becoming ironhard. It is in short a time for a sched

He points out, in one comment, the ule of "yes-buts.” fears many of us have expressed:

However, if the test ban merely recognizes the fact of a mutual atomic checkmate, it exposes the United States to all manners of psychological dangers. We are already hearing that there must be a further relaxation of tensions.

Let us make a stab at formulating such a

schedule:

1. Yes, we should take advantage of the crop failure in the Soviet Union. But if we are going to sell wheat to Russia we should get more than gold or dollars in exchange. We might offer a certain amount of wheat

on condition that free farming, with private ownership of acreage, be restored in all the captive nations of Eastern Europe. We might offer still more wheat if free farming were to be restored in Russia itself.

2. Yes, we should have more reciprocal movement of journalists, tourists, students, artists, athletes, and technicians across borders. But we should insist that movement inside the borders really be free. When Secretary of Agriculture Orville Freeman returned recently from an 18-day trip to the Soviet Union without having been let in on the secret that the Russian wheatlands weren't producing, it was, to put it mildly, a little ridiculous.

CUBA MISSIONS

3. Yes, we should have a detente on Berlin and Eastern Europe. But in exchange for recognizing a neutral belt stretching from the Baltic to the Black Sea, we should insist that the Berlin wall come down and the Germans be allowed to unify on their own uninhibited terms. Moreover, the new East European neutrals should be permitted the free elections that were originally promised in the Yalta deal.

4. Yes, we should be willing to sign a comprehensive nonaggression pact with Khrushchev. But not until he has taken his minions out of Cuba, dismantled his fifth columns everywhere, and denounced the sly tactic of encouraging indigenous revolutions under the name of Titoism.

This is just scratching the surface of the "yes-buts." Let's hear from a hundred million other "yes-butters" in the United States. Given a sixth or a seventh crop failure (and don't think he won't have it), Khrushchev must some day be disposed to listen.

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Like most Senators, I voted to approve the test ban treaty, but I pointed out that I would go along with the majority of Senators with the clear understanding that I wished to see some action on the part of the Soviet Union which would bear out the claims of the proponents of the treaty that such action was an opening to better relations and easing of tensions. I have not seen any evidence of better relations.

The treaty was hardly signed before we had more trouble on the autobahn in East Germany. And now we have heard of the seizure of Professor Barghoorn on the trumped-up charge of being a spy.

In today's issue of the New York Times there is a lead editorial entitled "Freedom of Exchange." It points out that this seizure could be a deliberate provocation on the part of the Soviet Union to bring about an end to the cultural exchange program, because the Soviets are concerned about their people knowing how we live in the United States and about their people seeing our visitors in the Soviet Union on a cultural exchange program.

Mr. President, I ask unanimous consent to have this editorial printed in the RECORD.

There being no objection, the editorial was ordered to be printed in the RECORD, as follows:

FREEDOM OF EXCHANGE

President Kennedy stated well yesterday some of the larger implications of the outrageous conduct of the Soviet Government in the case of Prof. Frederick C. Barghoorn. It will be simply impossible to carry on any program of cultural or scholarly exchange

with the Soviet Union if Americans asked to participate in it must face the risk of arrest by the secret police and indefinite confinement in a Soviet jail before the American Embassy is even notified.

The barbaric and unacceptable character of the Soviet behavior toward Professor Barghoorn is so clear that the suspicion must arise that this incident is a deliberate provocation aimed precisely at ending the cultural exchange program. Certainly the Soviet officials who ordered this action must have foreseen that it would leave the U.S. Government no alternative but to call off the negotiations scheduled to begin next week for renewal of the agreement on cultural and scholarly exchanges. A motive for such conduct is apparent in the Soviet leaders' acknowledged fear of the penetration of Western ideas among the people of the Soviet Union. Such maneuvering, aimed at putting the blame for an end to the exchange program upon the United States, would certainly be in the best Stalinist tradi

tion.

Another possibility is that the Soviet leaders seized Professor Barghoorn in the belief that he could be traded for one or more Soviet spy suspects now imprisoned in this country. President Kennedy indicated yesterday that if the Soviet action is based on any such presumption it will not be successful. This is the only possible stand. Any other policy would make it extremely hazardous for any American citizen without diplomatic immunity to be in the Soviet Union at any time that the United States arrested a Soviet spy suspect. Surrender to such

blackmail would only encourage repetition

of such extortion tactics.

AMENDMENT OF FOREIGN ASSIST

ANCE ACT OF 1961

The Senate resumed the consideration of the bill (H.R. 7885) to amend further the Foreign Assistance Act of 1961, as amended, and for other purposes.

Mr. MILLER. Mr.

I

President, I thought it was significant when President Kennedy said yesterday that the kidnaping deal of the Soviets could jeopardize the wheat sale program. believe that point was fairly well made, because last evening when the Senate was considering the Mundt amendment, it was pointed out that we cannot trust the Communists, that the promissory notes which would be given for threequarters of the cost of the wheat sales would not be worth the price of the paper they were written on. At least, that was the point made and I believe very well made and properly so-by the Senator from South Dakota [Mr. MUNDT].

If there are any doubts among Members of the Senate regarding the validity of the statement of the Senator from South Dakota [Mr. MUNDT], let them be laid at rest. On that very basis, the

President of the United States said yesterday that this type of activity by the Soviets indicates that we cannot trust them. This is all the more reason why we had better get cash on the barrelhead for the wheat.

In connection with the Mundt statement, there has been considerable reference to the recently authorized sale of wheat to Russia and other bloc nations. Assertions have been made that this will produce some relief to our balanceof-payments deficit problems.

I believe such assertions are well founded. We should understand that the relief will be only partial and tem

porary.

There have also been some assertions about savings to the taxpayers which have appeared to be exaggerated. I am referring particularly to savings estimates made by the Secretary of Agriculture, Orville Freeman.

On November 7 I placed in the RECORD a letter I had written on October 15 to the Secretary, inquiring about statements he had made that the proposed sale of 150 million bushels of wheat to the Soviet Union and the other bloc nations would result in savings to the U.S. taxpayer of about $200 million in storage and other costs. I sought an explanation of how this could be accomplished since the expense for more than 1 billion bushels in inventory came to only $201 million in fiscal year 1963. I noted that, as of that date, I had received only a reply from another official in the Department stating that he was assembling the data and would forward it at an early date. I wondered then why the Department did not have the information readily available in order to support Secretary Freeman's statement of savings.

In introducing the letter into the RECORD, I also referred to an article which appeared in the Wall Street Journal of October 15. The article, in noting Mr. Freeman's $200 million savings estimate, asserted that he "didn't break down this estimate, but the Agriculture Department has estimated the savings in storage, transportation, and handling costs would total $225 million during the current fiscal year and $30 million in

fiscal 1965."

This Journal statement was borne out by the Department's background report to correspondents on October 10 on "U.S. Wheat Supply and Distribution." Let me quote from page 9 of that report:

In fiscal year 1964, the chief effect on the Federal budget would be a net reduction of around $225 million in budget expenditures, lated costs. The actual costs would depend on the level of world prices and the consequent amount of export subsidy that would be required. In the fiscal year 1965, the impact would be to reduce CCC expenditures for storage and interest by about $30 million as a result of the reduction in CCC holdings.

including CCC's storage, acquisition, and re

This is from one of Mr. Freeman's Department's publications.

Mr. President, on November 13, I received a direct reply from Secretary Freeman. Instead of the savings being effected in 1 year, as the report indicated, his letter now advises that the

savings would accrue over a 5-year period.

It would be next to impossible to effect savings of $225 million in this fiscal year-which Mr. Freeman now recognizes since the wheat probably will not be moved out until near the end of the current fiscal year, if it can be moved out at all by then. Unless he commandeered all the freight cars in the United States-which is unlikely that wheat cannot be moved to the ports in such time. This means storage costs are accumulating, interest is mounting, not to mention the eventual $90 million or so in export subsidies which would have to be added.

But to return to Mr. Freeman's 5-year plan of savings. According to his computations, it costs a total of 26.21 cents a bushel to keep wheat in inventory, which, multiplying this by the 150 million bushels involved in the proposed Soviet transaction, would result in annual costs of $39.3 million.

He projected this annual cost over a 5-year period since, he stated, recent wheat disposition history shows that wheat acquired in 1963 would remain in inventory for slightly more than 5 years. Secretary Freeman wrote:

Based on that hypothesis, the savings on 150 million bushels of wheat that otherwise would be in CCC holdings would eliminate carrying charges of $196.5 million over a 5-year period-$39.3 million per year-at 26.21 cents per bushel.

I have a feeling, however, that Secretary Freeman is inflating that savings estimate somewhat, especially since the Department of Agriculture, in that background statement to correspondents alluded to earlier in my remarks, noted that because "the current U.S. wheat crop is smaller than overall requirements, there is a tight supply of privately held wheat, and the trade must buy 'extra' supplies from the CCC." In other words, the trade will be forced to turn to the Government for wheat in order to meet its needs; these needs appear to be great since, according to USDA compilations, the United States is the world's only country with a large and readily available wheat supply.

And how tight is this supply of privately held wheat? In its "Wheat Situation," also referred to as the "1964 Outlook Issue," released on September 5-well before any determination of a

United States-Soviet wheat dealUSDA's Economic Research Service noted the "free" or privately held supply of old-crop wheat on July 1, 1963, earlier, it said, the free carryover was was about 4 million bushels. A year estimated at 130 million bushels.

Certain other aspects of Mr. Freeman's letter disturb me. In computing the 26.21 cents a bushel-or $39 million annual savings-he included not only storage, handling, and interest charges, but reseal payments and transportation costs for each year. The reseal payments, including processing, were figured at the rate of 1.24 cents a bushel, or a total of more than $9 million in the 5-year period he used. This is erroneous. Reseal payments, of approximately

$1.89 per bushel, are made only once, and thereafter the producer receives a storage payment of about 13 cents, the difference between the two being about $1.76 a bushel.

It is hard to believe that 150 million bushels of wheat would be under reseal for 5 years in light of existing conditions. According to the Grain Market News, put out by the Department on October 25, the quantity outstanding under reseal loans in 1963 included 39,268,000 bushels of 1962 crop, 7,637,000 bushels of 1961 crop, 12,123,000 bushels of 1960 crop, and 5,591,000 bushels of 1959 crop, a total of less than 65 million bushels, a far cry from the 150 million bushels of wheat we would be led to believe would remain

under reseal for 5 years. These figures appear to negate inclusion of reseal payments.

In addition, it is hard to visualize the Department costs of close to $6 million a year for the incurring transportation same 150 million bushels.

I could agree that it may cost the Department an initial $6 million, but not the $30 million Secretary Freeman includes in computing his savings estimate. Mr. Freeman is not anticipating transporting the grain from one area of the country to another every year for the next 5 years, as he apparently did when he gave me this compilation.

I suggest that Mr. Freeman's savings are exactly what he terms them-a hypothesis, and that the hypothesis is built on erroneous premises. I recognize that some savings will be made to taxpayers, but I dislike to see them exaggerated.

I ask unanimous consent that Mr. Freeman's letter dated November 12, 1963, relating to savings calculations, be placed in the RECORD at this point.

There being no objection, the letter was ordered to be printed in the RECORD, as follows:

DEPARTMENT OF AGRICULTURE,
Washington, D.C., November 12, 1963.
Hon. JACK MILLER,
U.S. Senate,
Washington, D.C.

DEAR SENATOR MILLER: This is in further reference to your letter of October 15, 1963, wherein you requested information concerning the calculation of the reported $200 million savings in storage and other costs that would accrue from a sale of 150 million

bushels of wheat to the Soviet Union and the satellite bloc.

To compute the $200 million savings, we used costs recorded in the fiscal year 1962 per bushel of wheat in inventory on the average during the year. These costs, in cents per bushel, are as follows:

Storage and handling-
Transportation

Reseal payments, etc.--.
Interest

Total____

year period ($39.3 million per year) at 26.21
cents per bushel.

Sincerely yours,

ORVILLE L. FREEMAN,

Secretary.

Mr. CARLSON. Mr. President, will the Senator yield?

Mr. MILLER. I am very happy to yield to the Senator from Kansas.

Mr. CARLSON. The distinguished Senator from Iowa has made a very helpful analysis of the savings proposed to be made by the sale of wheat to Russia. As one who favors the sale and who favored it early, I have been using the figure of $225 million as a saving, on the basis of the transaction.

As I understand the Senator from Iowa, the $225 million figure is arrived at by spreading it over a 5-year period.

Mr. MILLER. The Senator is correct. Furthermore, it assumes that the if it is not sold. This is not a first-year wheat will in fact be held for 5 years

saving. I recall that I first heard about

this subject when I was at home in my
State at the annual State cornpicking
contest. A member of the press asked
for my comments on Mr. Freeman's
statement that the sale of 150 million
bushels of wheat to the Soviet Union
would save the American taxpayers next
year approximately $200 million. I re-
called that the annual cost of storing
about 1,200 million bushels of wheat
came to about $201 million.

Mr. CARLSON. Normally we hear it
said that our storage costs are about a
million dollars a day, for wheat, corn,
and other commodities. That would be
approximately $365 million a year.

Mr. MILLER. Yes. When only 150 million bushels of wheat are involved, as against some 1,200 million bushels, which are in storage, and which cost only $200 million, how can we have the same amount attributable to 150 million bushels of wheat?

At any rate, I decided that the thing to do was to write to Mr. Freeman and find out how he arrived at his figures. Finally I received his letter. I hope he will make it clear in future publications on this point that his figures were based on a 5-year period of storage.

Furthermore, I hope he will revise the figure as to the annual transportation costs, because we are not, I hope, moving wheat from the elevators in the State of the Senator from Kansas to the elevators in Texas, or back and forth over a 5-year period. If wheat is not, in fact, stored for 5 years, then of course, in light of the tightness of the private trade, it appears that present circumstances would indicate that there would not be anywhere near a 5-year storage 7.51 period for the wheat if it were not sold to the Russians.

Cents

13.53
3.93
1.24

26.21

As you know, wheat is stored commingled and, for our inventory accounting purposes, it is disposed of on a first-in, first-out basis. Using recent wheat disposition history as a guide, wheat acquired in 1963 would remain in inventory for slightly more than 5 years. Based on that hypothesis, the savings on 150 million bushels of wheat that otherwise would be in CCC holdings would eliminate carrying charges of $196.5 million over a 5

Mr. CARLSON. Mr. President, again I appreciate the information the Senator from Iowa has given in regard to the figure of $225 million as a saving, because the general impression is that that is an annual saving. The information the Senator has given is very helpful. As further proof that it is generally accepted as an annual saving figure, in yesterday's Washington Evening Star,

the very outstanding financial writer, Sylvia Porter, published an article entitled "Benefits Cited in the Wheat Sale."

At the conclusion of the Senator's speech I shall ask that the entire article be printed in the RECORD, but at this point I should like to read a portion of it, as follows:

Beneft: The export of this wheat would allow a cut in our domestic budget spending of around $225 million this fiscal year and of another $30 million in the next fiscal year.

As one who supports the sale of wheat

to Russia, I say that the Senator has ren

dered a real service in pointing out the facts with regard to the figures furnished lieve that the country should know exby the Department of Agriculture. I be

actly what the actual savings are.

Mr. MILLER. I have about finished

the RECORD the article to which he has my main comments. If the Senator is referred, I have no objection to his doing so.

so disposed and would like to include in

Mr. CARLSON. Mr. President, I ask unanimous consent to insert in the RECORD following the speech by the Senator from Iowa the article written by Sylvia Porter entitled "The Benefits Cited in Wheat Sale," and a statement I made about the sale of wheat to Russia.

The PRESIDING OFFICER. Without objection, it is so ordered.

(See exhibit 1.)

Mr. MILLER. Mr. President, I again thank the Senator from Kansas. I was intrigued when I heard him mention the article written by Sylvia Porter, which he asked to have printed in the RECORD.

As the Senator knows, I have had some difficulty with Sylvia Porter with respect to some of her economic principles. It is interesting that she has taken the same figure of $225 million, which Mr. Freeman and the U.S. Department of Agriculture have put out, without giving it some scrutiny, which I am sure she would have been very capable of doing. I hope that perhaps she will use this colloquy as a basis for a future article on this subject.

At any rate, there will be some savings to the taxpayers, and I will be the first to recognize them. I indicated that if certain things were done, such as a cash sale, or a sale on short term commercial credit, perhaps on the basis of 90 days, at a fair price, in the light of the existing situation, which sees our allies making sales to the Soviet Union, leaving Uncle Sam holding the wheat sack, and taking into account our balance of payment deficit problem, and our desire to do something in many ways toward improving it, the United States would be on the plus side as far as this wheat sale to the Soviet Union is concerned.

At the same time, that does not mean that I will not criticize someone when he tries to create an approving public opinion by playing up savings to the taxpayers beyond what they are. Let us give the American people the facts. They do not need anything else. They do not need to have Madison Avenue window dressing on them. They do not

have to have exaggerations or halftruths or mistruths. Give them the facts, and they will be all right. I am quite sure that if they are given the facts they will be able to make a sound judgment.

be easy for Russia to pour on more fertilizer, use more and more insecticides and herbicides, and thus increase her production of wheat and other commodities 20 to 30 percent.

We think we have a good agricultural

Mr. CARLSON. Mr. President, will production in the United States, but prothe Senator yield?

Mr. MILLER. I yield.

Mr. CARLSON. The Senator from Iowa mentioned the sales that have been made by other foreign countries to the Soviet Union. In the statement I placed in the RECORD as a part of my remarks, it is interesting to note:

Statistics for 1962 show that West Germany trade agreements with Russia alone totaled about $700 million. Germany is now

the third largest industrial nation in the world. Italy has a 4-year trade agreement with the Soviets for $1.11 billion worth of goods. France has signed a 3-year trade pact with Russia for $100 million in trade. India has a 4-year trade pact with Russia which provides annual trade of $440 million. Japan has a 3-year trade pact with Russia that calls for $365 million. The United States and Russian trade last year was $16 million each way.

It is my contention that we cannot live in this age, in this period, without world trade. As I said earlier, I favored the sale of wheat to the Soviet Union. Not only that, but I think the time has ar

rived for us to send out some people with briefcases, to sell in the world markets. Mr. MILLER. I thank the Senator from Kansas for his comment. The figures he has recited point up the facts of life. It is all very well to talk in terms of theories. I am all for theories. But I think we ought to know where we are going and why we want to get there. We have a condition to be concerned

about when we are trying to move toward our objective. The condition is that we are not calling the turn on our allies. I am not sure we could. Even if we could, I am not sure it would be desirable to force them to an isolation of the free world from the Communist world.

Mr. YOUNG of North Dakota. Mr. President, will the Senator from Iowa yield?

Mr. MILLER. I yield.

Mr. YOUNG of North Dakota. There is something more important involved than in the sale of wheat to Russia. We must consider our overall military security and the effect it would have on the whole U.S. economy. How would the sale of wheat to Russia affect the se

curity or the economy of our country? Some 10 or 12 years ago the United States refused to sell wheat to Russia, so the Russians broke up millions of acres of new land. Until a drought occurred the last 2 years, they had become net exporters of wheat. Now the Russians are engaged in a program of more irrigation to increase wheat production. That will prove to be rather expensive. But their other program will succeed; that is, to pour on fertilizer, as we do. Also, they are beginning to use more and more insecticides and herbicides. They have not been able to purchase this material from the United States, but we sell it to England and other countries, which in turn resell it to Russia. So it would

duction per acre in Japan is probably twice as much as it is in the United States. So Russia does not have to go far to find new techniques to increase greatly her agricultural production.

In my opinion, the United States would be much better off to have Russia dependent on us for a part of her food needs than to have Russia become selfsufficient, as Hitler and Mussolini tried to do for their countries prior to their engaging in World War II.

Mr. MILLER. I agree with the views of the Senator from North Dakota. However, I think we must emphasize what the President pointed out to the American people, namely, that we cannot count on the sale of wheat to Russia as a basis for future agricultural programs. We must look upon this transaction as a one-shot deal. We can be action as a one-shot deal. We can be quite sure that the Soviet Union and the Soviet bloc nations will do their utmost to see to it that they do not have another crop failure.

Mr. YOUNG of North Dakota. Mr.

It makes me wonder about the world price rule that the President laid down when he gave to the American people his conclusions concerning whether the proposed wheat sale should be approved. I suppose it is this kind of question that prompted 10 Republican House Members to call on President Kennedy to "reveal and explain" details of the negotiations on the wheat deal with Russia. The article states:

They contended that what had been originally billed as a private trade deal was becoming a "government-to-government" transaction.

Also, the Baltimore Sun for today, November 15, has published an article entitled "Guidelines on Grain Set." The article refers to the guidelines with respect to the shipments of wheat. It will be recalled that when the President gave his approval of the sale of wheat, he set forth as one of the conditions that the shipments be made in American-owned bottoms, if they were available. That sounded good; but after a while news reports indicated that shipping charges in American-owned bottoms were higher by quite a bit than shipping charges in forquite a bit than shipping charges in foreign-owned bottoms, and that the Soviet negotiators were not happy about that and were resisting.

Trial balloons, about which we read so

President, will the Senator from Iowa much in Washington area newspapers, further yield?

Mr. MILLER. I yield. Mr. YOUNG of North Dakota. They intend to become as nearly self-sufficient as possible. A nation as big as Russia, and having as much land as Russia has, can do so easily.

If

Mr. MILLER. That is correct. this is to be a one-shot deal, as the Sen

ator from North Dakota has said, we might as well let Russia spend its money for our wheat, rather than spend it on something else, such as bringing more land into production in the hope that there will be a good crop next year.

Mr. YOUNG of North Dakota. In the past 11 years, the United States has purchased $92 million more in goods from Russia than Russia has purchased from us. In other words, Russia has repast 11 years to use in spreading comceived $92 million of our money in the munism throughout the world. Russia can do much more damage with our dollars than she can with our wheat.

Mr. MILLER. I thank the Senator from North Dakota.

Mr. President, the New York Times for today, November 15, has published an article entitled "Eight Million Dollars of Wheat Sold to Hungary." The article

states:

The sale of 100,000 more tons of wheat to Hungary was disclosed today

That is, on November 14

The Commerce Department announced that it had issued an export license for the $8 million sale. This price is $400,000 more than was received for 100,000 tons sold November 8.

That is what caught my eye. Why should the sale of wheat on November 8 have been for $400,000 less than the amount for which the same quantity of wheat sold a week later?

were sent up. Someone suggested that if owned bottoms were higher than the the charges for shipping in Americancharges for shipping in foreign-owned bottoms, perhaps the American-owned bottoms were not available within the context of the President's conditions.

But the negotiators finally got around that situation to the point that it appears

that if the exporter can show that he will ship the wheat 50 percent in American bottoms, and cut the cost somewhat, such an arrangement will be satisfactory.

That is another reason why this entire proposition should be brought into the open. The American people should know not only what the President's conditions were, but how they are being met. It is fine to tell the people about fair with them and tell them how he conditions; but it is much better to play conditions are being met and interpreted.

Mr. President, I ask unanimous consent that the articles from the New York Times and the Baltimore Sun be printed at this point in the RECORD.

There being no objection, the articles

were ordered to be printed in the RECORD, as follows:

[From the New York (N.Y.) Times, Nov. 15,

1963]

EIGHT MILLION DOLLARS OF WHEAT SOLD TO HUNGARY SECOND LOT OF 100,000 TONS GETS $400,000 RAISE IN PRICE

(By William M. Blair) WASHINGTON, November 14.-The sale of 100,000 more tons of wheat to Hungary was disclosed today.

The Commerce Department announced that it had issued an export license for the $8 million sale. This price is $400,000 more than was received for 100,000 tons sold November 8. The November 8 deal was the first sale of wheat to a Soviet-bloc country since President Kennedy approved sale of farm

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NEGOTIATIONS STILL ON

There still was no word on private negotiations underway between grain merchants and a Soviet wheat mission on the direct sale of $250 million worth of wheat to Russia. Some official sources expected a deal at any time, especially now that the Commerce Department has published its official regulations governing the cost of shipping wheat to Russia.

The regulations issued today followed the outline disclosed last Friday by Under Secretary of Commerce Franklin D. Roosevelt, Jr. In effect, they set a ceiling rate of $14 to $18 a ton for wheat shipped to Black Sea and Baltic ports. These rates still are above world charter rates, which officials still insisted were rising to close the gap.

BELOW AID SCHEDULE

The rates were established by setting them 20 percent below the schedules for foreign aid shipments through Public Law 480, the surplus disposal statute, for 10,000- to 15,500-ton U.S.-flag ships. The 20 percent lower rates applied to larger ships, mainly tankers, of 15,600 to 30,000 tons.

Guideline rates for vessels over 30,000 tons will be subject to consultation on specific shipments, the Maritime Administration said. As worked out with the Russians, U.S.flag ships will be used for 50 percent of the wheat. This is the same division set down in law for foreign aid shipments.

The maximum "fair and reasonable" rates established by the Maritime Administration showed that shipments from North Atlantic ports to the Odessa on the Black Sea are $16.55 a ton for winter and $16.10 a ton for summer. From gulf ports to Odessa the same rates would be $18.02 a ton for both

seasons.

From North Atlantic ports to Leningrad on the Baltic Sea the maximum rates are $14.35 a ton for winter and $13.98 for summer. The same rates from gulf ports to Leningrad are $16.21 and $15.97, respectively.

Ten Republican House Members called on President Kennedy to "reveal and explain" details of the negotiations on the wheat deal with Russia. They contended that what had been originally billed as a private trade deal was becoming a "government-to-government" transaction.

[From the Baltimore (Md.) Sun, Nov. 15, 1963] GUIDELINES ON GRAIN SET-APPLY TO FREIGHT RATES TO IRON CURTAIN COUNTRIES WASHINGTON, November 14.-The Department of Commerce today made public its guidelines on freight rates for the transportation of wheat and the revised regulations governing the applications to export agricultural

commodities to Iron Curtain countries.

At the same time, the Department granted an export license the second granted for the shipment of $8 million worth of U.S. wheat to Hungary.

Althought a previous export license for 100,000 tons at a cost of $7,600,000, including transportation, had been issued last weekend, the company involved was having difficulty

obtaining American-flag ships at the 20-percent cut rate announced last week and published today by the Government.

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The regulations today again pointed out that at least 50 percent of the wheat and wheat flour will be exported on U.S.-flag vessels. If a U.S. carrier is not available at reasonable rates, exporters must obtain prior authorization from the Maritime Administration to ship less than 50 percent on U.S. carriers.

Upon the completion of shipping arrangements wheat and wheat flour exporters are now required, in addition, to notify the Maritime Administration of the export license number, the name of the carrier, the carrier's flag of registration, and the quantity of the shipment.

In addition to certifying shipping commitments on license applications, exporters of wheat and wheat flour must include a statement that these commodities were produced

in the United States.

The Department of Commerce also is re-
quiring all details of the financing arrange-
ments, including the names of participating

financial institutions, on the license appli-
cations. If the financing arrangements are
not completed at the time applications are
submitted, exporters must state on their
applications that the Office of Export Con-
trol will be provided this information
promptly as soon as financing arrangements
are completed.

No exporter can sell more than 25 percent
of the total quantity expected to be pur-
chased in the United States.

Mr. MILLER. Mr. President, a very interesting article appeared in the Washington Post of November 5. It relates to a major long-term trade agreement between Algeria and Russia, based on an exchange of Soviet heavy equipment and arms for Algerian food. The news article indicates that, under the agreement, Algeria will export to the Soviet Union wheat and flour, among other foodstuffs.

Ac

But it should be even more intriguing to discover what happens to the foodfor-wages program which the United States entered into with Algeria back in June. Under this program, as set out in a New York Times article of June 26, the United States agreed to furnish surplus food to Algeria to serve as part payment of wages for 60,000 jobless Algerians.

The article also notes that U.S. assistance in the form of surplus food continues to help feed about 2.5 million needy Algerians, about one-fourth the population. It indicated, in addition, that a third surplus food program on which an accord was near was a government-to-government arrangement under which the United States will provide wheat for the Algerian Labor Ministry to use for its own food-for-wages program without U.S. technical assistance.

Under this all-Algerian plan, about 300,000 jobless Algerians are expected to be employed.

If the Algerian people are so short of food and so dependent upon the United States in this respect, one wonders where the Algerian Government is going to get the foodstuffs-including wheatto ship to the Soviet Union, in return for heavy equipment and guns. Could it be that the food for wages will not go to the needy Algerians, but will go to Russia, instead?

Mr. President, I think this is a matter of concern to us, not only because the United States may United States may again be shortchanged, but also because our surplus food sent to Algeria may wind up behind the Iron Curtain. I believe this matter should be scrutinized very closely and an accounting should be made by Algeria as to exactly where its Russian exports are to come from.

I ask unanimous consent that two arTrade Pact," and the second entitled ticles-one entitled "Russia, Algeria Sign "United States Signs Pact To Provide Food Aid to Algeria❞— be printed in the RECORD.

There being no objection, the articles were ordered to be printed in the RECORD, as follows:

[From the New York (N.Y.) Times, June 26,
1963]

UNITED STATES SIGNS PACT TO PROVIDE FOOD
AID TO ALGERIA FARM SURPLUSES TO BE
USED AS PART OF PAY TO EMPLOY JOBLESS
IN RURAL AREAS

ALGIERS, June 25.-The United States signed today its first direct aid agreement with Algeria. It involved food and wages and technical assistance, but little cash.

Under the accord, the United States agreed

It will be interesting to determine the original source of that wheat which will be shipped to the Soviet Union and to furnish surplus food to serve as part paywhether the United States will be left ment of wages for 60,000 jobless Algerians. These men will work on American-superholding the bag in the long run. cording to the August issue of "Wheat vised soil conservation and irrigation pilot Situation," published by the U.S. Depart-projects in four depressed rural areas-Constantine, Tizi-Ouzou, Orléansville, and ment of Agriculture, U.S. exports to Al- Tlemcen. geria during the July 1962 to June 1963 period came to 9,971,000 bushels of wheat. The report also shows that 2,211,000 bushels of wheat flour and bulgur were shipped to Algeria under the foreign donation program during that same period.

The use of American technicians and

planning sets these projects apart from food-for-work programs already underway in neighboring Tunisia and Morocco.

LONG-TERM GAINS SOUGHT

"Our idea," said an American official, "is not just to create jobs, but to produce some

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