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back into their normal orbits, they give off He goes on to warn that this is a on condition that free farming, with private powerful bursts of pure light.
time of what he terms "incipient eupho- ownership of acreage, be restored in all the The core of the laser usually is a tiny, ria.” He then outlines what he feels we
captive nations of Eastern Europe. We might
offer still more wheat if free farming were force the manufactured light through the should do to formulate a policy of iron to be restored in Russia itself. other. Various types of gases also can be hardness in future dealings with the
2. Yes, we should have more reciprocal used as the core of a laser. Soviets.
movement of journalists, tourists, students, Researchers across the Nation are working I believe those points are well taken artists, athletes, and technicians across boraround the clock to develop lasers for mili- and should be read by everyone.
ders. But we should insist that movement tary use.
I ask unanimous consent that the inside the borders really be free. When SecWestinghouse defense center in Baltimore, article, entitled “Things We Should retary of Agriculture Orville Freeman relike many other firms, is working on the proj- Demand in Future Dealings with Rus
turned recently from an 18-day trip to the ect. And, like other companies, it is pour: sia,” may be printed in the RECORD.
Soviet Union without having been let in ing its own funds into the race as well as
on the secret that the Russian wheatlands government money. This year alone, West
There being no objection, the article
weren't producing, it was, to put it mildly, a inghouse has allocated $5 million of its own was ordered to be printed in the RECORD, little ridiculous. money for laser research-probably the as follows:
CUBA MISSIONS greatest single effort of any firm in the coun
THINGS WE SHOULD DEMAND IN FUTURE
3. Yes, we should have a detente on Bertry.
DEALINGS WITH RUSSIA
lin and Eastern Europe. But in exchange for MESSAGE CARRIER?
(By John Chamberlain)
recognizing a neutral belt stretching from Among other things, Westinghouse is attempting to send messages via laser beams.
The test ban treaty is now part of our
the Baltic to the Black Sea, we should insist Because lasers have much shorter wave world, and taken by itself I persist in
that the Berlin wall come down and the Gerthinking it a desirable thing. The chance lengths than radio beams, many more mes
mans be allowed to unify on their own unsages could be sent on each beam. The
that Russia might, in the absence of further inhibited terms. Moreover, the new East oretically, one laser beam could carry as atmospheric testing, beat us to producing European neutrals should be permitted the
free elections that were originally promised many messages as all the radio frequencies an effective antimissile missile or a means in the world currently in use.
in the Yalta deal. of jamming military communications sysThe difficulty lies in breaking or modulattems on a continental and oceanic scale
4. Yes, we should be willing to sign a coming the laser beams to carry messages or
seems really remote. This may testify to prehensive nonaggression pact with Khru
my technological innocence, but I haven't shchev. But not until he has taken his possibly producing sidebands which would
seen anything yet that would indicate that minions out of Cuba, dismantled his fifth serve as information carriers. either side is on the trail of either the abso
columns everywhere, and denounced the sly Laser communication also has military ap
lute nuclear weapon or the absolute anti tactic of encouraging indigenous revolutions plication because the beam can carry a mesweapon.
under the name of Titoism. sage without detection unless the beam is
Furthermore, it is not in the cards that interrupted.
This is just scratching the surface of the In the case of radio, the message is radi
the United States and the Soviet Union “yes-buts.” Let's hear from a hundred mil
will ever fight an atomic war no matter ated in all directions from a transmitter.
lion other "yes-butters" in the United States.
Given a sixth or a seventh crop failure (and Anyone within the circle of effective radio what is done in the realm of further testrange can tune in the frequency if he has ing. At atomic struggle would bring two don't think he won't have it), Khrushchev sets of “overkill” into action-and the peo
must some day be disposed to listen. the proper type receiver.
Using a laser, however, all the energy is ples who live at the ends of the earth, far concentrated and focused on one point. and poisoned shambles of the east Euroaway from what would become the smoking
SOVIET SEIZURE OF PROFESSOR Since the beam is flashed only for a few millionths of a second, it is virtually jamproof, Continent, would live to capitalize on the pean “heartland" and the North American
BARGHOORN since it must be blocked or intercepted with
Mr. MILLER. Mr. President, in cona physical obstruction between the source
disappearance of two monster world powers. and the target.
Assuming there is an iota of self-interest nection with the deal with Russia, all of Power requirements are fantastically low- in Soviet Russia and in the United States, us are very much aware of the Soviet ered through the use of laser, since it re
neither Khrushchev nor John F. Kennedy seizure of Prof. Frederick C. Barghoorn. quires only one millionth of the power to
will ever press a button that would effective- At the time the nuclear test ban treaty achieve the same results as radio equipment ly hand the world over to the Red Chinese. was being considered in the Senate, we
However, if the test ban merely recog were assured that that was to be the Radar applications of laser could provide nizes the fact of a mutual atomic check- opening wedge to friendlier relations and better range and accuracy than present tech- mate, it exposes the United States to all man
ner of psychological dangers. We are alniques.
easing of tensions between the West and
Like most Senators, I voted to approve sighted like a rifle. The beam following the terms are not defined. Tensions, we know the test ban treaty, but I pointed out line of sight of the scope could direct a mis
by the example of people in madhouses, can that I would go along with the majority sile to a target with a minimum of risk to be relaxed by the cultivation of illusions. personnel in the field.
of Senators with the clear understanding Because of their tremendous heat and
that I wished to see some action on the energy, laser beams already have been used Or they can be relaxed on one side by ex part of the Soviet Union which would effectively in eye surgery to weld detached ploiting the tensions of the other side. The bear out the claims of the proponents of optic nerves to the retina. Since the beam danger is that the American peace movement,
the treaty that such action was an opencan be aimed directly through the pupil which has always been softheaded, will ing to better relations and easing of tenof the eye, the need for many surgical eye prove strong enough to win the day for a saftey-through-illusion victory.
sions. I have not seen any evidence of operations is eliminated.
better relations. As a peace-loving soul, I would gladly
have my own political tensions relaxed. The treaty was hardly signed before DEMANDS WHICH SHOULD BE Then I could apply for a pleasant job cover- we had more trouble on the autobahn in MADE OF THE SOVIET UNION
ing the New York Mets. However, illusions East Germany. And now we have heard have never appealed to me, and I should hate
of the seizure of Professor Barghoorn on Mr. MILLER. Mr. President, Col- to lose that tense feeling merely because I
the trumped-up charge of being a spy. umnist John Chamberlain, writing in have been put on the receiving end of one of
In today's issue of the New York Times the Cedar Rapids, Iowa, Gazette, has Khrushchev's one-two punches. thought-provoking comments on what
It seems to me that in this time of in- there is a lead editorial entitled “Freedom the United States should demand in fu
cipient euphoria, the diplomacy of our coun of Exchange.” It points out that this ture dealings with Russia.
try should take the precaution of becoming seizure could be a deliberate provocation
ironhard. It is in short a time for a schedHe points out, in one comment, the ule of “yes-buts.”
on the part of the Soviet Union to bring fears many of us have expressed:
about an end to the cultural exchange Let us make a stab at formulating such a
program, because the Soviets are conHowever, if the test ban merely recog- schedule:
cerned about their people knowing how nizes the fact of a mutual atomic check 1. Yes, we should take advantage of the mate, it exposes the United States to all crop failure in the Soviet Union. But if we
we live in the United States and about manners of psychological dangers. We are are going to sell wheat to Russia we should their people seeing our visitors in the already hearing that there must be a further get more than gold or dollars in exchange. Soviet Union on a cultural exchange prorelaxation of tensions.
We might offer a certain amount of wheat gram.
Mr. President, I ask unanimous con- President of the United States said savings would accrue over a 5-year sent to have this editorial printed in the yesterday that this type of activity by period. RECORD.
the Soviets indicates that we cannot It would be next to impossible to effect There being no objection, the editorial trust them. This is all the more reason savings of $225 million in this fiscal was ordered to be printed in the RECORD, why we had better get cash on the year-which Mr. Freeman now recogas follows: barrelhead for the wheat.
nizes—since the wheat probably will not FREEDOM OF EXCHANGE
In connection with the Mundt state- be moved out until near the end of the President Kennedy stated well yesterday ment, there has been considerable refer- current fiscal year, if it can be moved some of the larger implications of the out- ence to the recently authorized sale of out at all by then. Unless he comrageous conduct of the Soviet Government wheat to Russia and other bloc nations. mandeered all the freight cars in the in the case of Prof. Frederick C. Barghoorn. Assertions have been made that this United States—which is unlikely—that It will be simply impossible to carry on any will produce some relief to our balance- wheat cannot be moved to the ports in program of cultural or scholarly exchange of-payments deficit problems.
such time. This means storage costs are with the Soviet Union if Americans asked to
I believe such assertions are well accumulating, interest is mounting, not participate in it must face the risk of arrest
founded. We should understand that to mention the eventual $90 million or by the secret police and indefinite confinement in a Soviet jail before the American the relief will be only partial and tem so in export subsidies which would have Embassy is even notified. porary.
to be added. The barbaric and unacceptable character There have also been some assertions But to return to Mr. Freeman's 5-year of the Soviet behavior toward Professor Barg- about savings to the taxpayers which plan of savings. According to his comhoorn is so clear that the suspicion must have appeared to be exaggerated. I am putations, it costs a total of 26.21 cents arise that this incident is a deliberate prov- referring particularly to savings esti a bushel to keep wheat in inventory, ocation aimed precisely at ending the cul- mates made by the Secretary of Agricul- which, multiplying this by the 150 miltural exchange program. Certainly the Soviet officials who ordered this action must ture, Orville Freeman.
lion bushels involved in the proposed Sohave foreseen that it would leave the U.S.
On November 7 I placed in the RECORD viet transaction, would result in annual Government no alternative but to call off a letter I had written on October 15 to costs of $39.3 million. the negotiations scheduled to begin next the Secretary, inquiring about state He projected this annual cost over a week for renewal of the agreement on cul- ments he had made that the proposed
5-year period since, he stated, recent tural and scholarly exchanges. A motive for sale of 150 million bushels of wheat to the wheat disposition history shows that such conduct is apparent in the Soviet lead- Soviet Union and the other bloc nations wheat acquired in 1963 would remain in ers' acknowledged fear of the penetration of would result in sayings to the U.S. taxWestern ideas among the people of the So
inventory for slightly more than 5 years. viet Union. Such maneuvering, aimed at payer of about $200 million in storage
payer of about $200 million in storage Secretary Freeman wrote: putting the blame for an end to the exand other costs. I sought an explanation
Based on that hypothesis, the savings on change program upon the United States, of how this could be accomplished since
150 million bushels of wheat that otherwise would certainly be in the best Stalinist tradi- the expense for more than 1 billion
would be in CCC holdings would eliminate tion.
bushels in inventory came to only $201 carrying charges of $196.5 million over a Another possibility is that the Soviet lead- million in fiscal year 1963. I noted that,
5-year period—$39.3 million per year-at ers seized Professor Barghoorn in the belief as of that date, I had received only a re
26.21 cents per bushel. that he could be traded for one or more So- ply from another official in the Depart I have a feeling, however, that Secreviet spy suspects now imprisoned in this country. President Kennedy indicated yesment stating that he was assembling the
tary Freeman is inflating that savings terday that if the Soviet action is based on data and would forward it at an early
estimate somewhat, especially since the any such presumption it will not be success- date. I wondered then why the Depart- Department of Agriculture, in that ful. This is the only possible stand. Any ment did not have the information read background statement to correspondents other policy would make it extremely hazard- ily available in order to support Secre alluded to earlier in my remarks, noted ous for any American citizen without dip- tary Freeman's statement of savings. that because "the current U.S. wheat lomatic immunity to be in the Soviet Union In introducing the letter into the at any time that the United States arrested RECORD, I also referred to an article
crop is smaller than overall requirea Soviet spy suspect. Surrender to such
ments, there is a tight supply of privately blackmail would only encourage repetition which appeared in the Wall Street Jour held wheat, and the trade must buy of such extortion tactics. nal of October 15. The article, in noting 'extra' supplies from
from the CCC." In Mr. Freeman's $200 million savings esti
other words, the trade will be forced to mate, asserted that he "didn't break
turn to the Government for wheat in AMENDMENT OF FOREIGN ASSIST- down this estimate, but the Agriculture order to meet its needs; these needs apANCE ACT OF 1961
Department has estimated the savings pear to be great since, according to The Senate resumed the considera- costs would total $225 million during the
in storage, transportation, and handling USDA compilations, the United States is tion of the bill (H.R. 7885) to amend
the world's only country with a large and further the Foreign Assistance Act of current fiscal year and $30 million in
readily available wheat supply. fiscal 1965.” 1961, as amended, and for other pur
And how tight is this supply of pri
This Journal statement was borne out vately held wheat? In its "Wheat Sitposes. Mr. MILLER. Mr. President,
by the Department's background report uation," also referred to as the "1964
I thought it was significant when Presi- to correspondents on October 10 on “U.S. Outlook Issue,” released on September dent Kennedy said yesterday that the Wheat Supply and Distribution.” Let
Let 5-well before any determination of a kidnaping deal of the Soviets could me quote from page 9 of that report: United States-Soviet wheat dealjeopardize the wheat sale program. I In fiscal year 1964, the chief effect on the USDA's Economic Research Service believe that point was fairly well made, Federal budget would be a net reduction of noted the "free" or privately held supbecause last evening when the Senate including CCC's storage, acquisition, and re
around $225 million in budget expenditures, ply of old-crop wheat on July 1, 1963, was considering the Mundt amendment, lated costs. The actual costs would depend
was about 4 million bushels. A year it was pointed out that we cannot trust on the level of world prices and the conse
earlier, it said, the free carryover was the Communists, that the promissory quent amount of export subsidy that would
estimated at 130 million bushels. notes which would be given for three- be required. In the fiscal year 1965, the im Certain other aspects of Mr. Freequarters of the cost of the wheat sales pact would be to reduce cCc expenditures man's letter disturb me. In computing would not be worth the price of the paper for storage and interest by about $30 mil the 26.21 cents a bushel-or $39 million they were written on. At least, that was lion as a result of the reduction in ccc
annual savings-he included not only the point made and I believe very well holdings.
storage, handling, and interest charges, made and properly so—by the Senator
This is from one of Mr. Freeman's but reseal payments and transportation from South Dakota (Mr. MUNDT). Department's publications.
costs for each year. The reseal payIf there are any doubts among Mem Mr. President, on November 13, I re ments, including processing, were figured bers of the Senate regarding the validityceived a direct reply from Secretary at the rate of 1.24 cents a bushel, or a of the statement of the Senator from Freeman. Instead of the savings being total of more than $9 million in the South Dakota [Mr. MUNDT], let them effected in 1 year, as the report indi 5-year period he used. This is erronebe laid at rest. On that very basis, the cated, his letter now advises that the ous. Reseal payments, of approximately
$1.89 per bushel, are made only once, and year period ($39.3 million per year) at 26.21 the very outstanding financial writer, thereafter the producer receives a stor cents per bushel.
Sylvia Porter, published an article en
Sincerely yours, age payment of about 13 cents, the dif
titled "Benefits Cited in the Wheat
ORVILLE L. FREEMAN, ference between the two being about
Sale.” $1.76 a bushel.
At the conclusion of the Senator's It is hard to believe that 150 million Mr. CARLSON. Mr. President, will speech I shall ask that the entire article bushels of wheat would be under reseal the Senator yield?
be printed in the RECORD, but at this for 5 years in light of existing conditions. Mr. MILLER. I am very happy to point I should like to read a portion of it, According to the Grain Market News, yield to the Senator from Kansas. as follows: put out by the Department on October Mr. CARLSON. The distinguished
Benefit: The export of this wheat would 25, the quantity outstanding under re Senator from Iowa has made a very
allow a cut in our domestic budget spending seal loans in 1963 included 39,268,000 helpful analysis of the savings proposed of around $225 million this fiscal year and of bushels of 1962 crop, 7,637,000 bushels of to be made by the sale of wheat to Rus another $30 million in the next fiscal year. 1961 crop, 12,123,000 bushels of 1960 crop, sia. As one who favors the sale and who
As one who supports the sale of wheat and 5,591,000 bushels of 1959 crop, a favored it early, I have been using the
to Russia, I say that the Senator has rentotal of less than 65 million bushels, a far figure of $225 million as a saving, on the
dered a real service in pointing out the cry from the 150 million bushels of wheat basis of the transaction.
facts with regard to the figures furnished we would be led to believe would remain As I understand the Senator from under reseal for 5 years. These figures Iowa, the $225 million figure is arrived at by the Department of Agriculture. I be
lieve that the country should know exappear to negate inclusion of reseal by spreading it over a 5-year period.
actly what the actual savings are. payments.
Mr. MILLER. The Senator is cor
Mr. MILLER. I have about finished In addition, it is hard to visualize the rect. Furthermore, it assumes that the Department incurring transportation wheat will in fact be held for 5 years
my main comments. If the Senator is costs of close to $6 million a year for the if it is not sold. This is not a first-year the Record the article to which he has
so disposed and would like to include in same 150 million bushels.
saving. I recall that I first heard about I could agree that it may cost the De this subject when I was at home in my referred, I have no objection to his do
ing so. partment an initial $6 million, but not State at the annual State cornpicking
contest. A member of the press asked the $30 million Secretary Freeman in
Mr. CARLSON. Mr. President, I ask cludes in computing his savings estimate. for my comments on Mr. Freeman's unanimous consent to insert in the RecMr. Freeman is not anticipating trans- statement that the sale of 150 million ORD following the speech by the Senator porting the grain from one area of the bushels of wheat to the Soviet Union from Iowa the article written by Sylvia country to another every year for the would save the American taxpayers next Porter entitled “The Benefits Cited in next 5 years, as he apparently did when year approximately $200 million. I re- Wheat Sale,” and a statement I made he gave me this compilation. called that the annual cost of storing about the sale of wheat to Russia.
The PRESIDING OFFICER. WithI suggest that Mr. Freeman's savings about 1,200 million bushels of wheat are exactly what he terms them-a hy- came to about $201 million.
out objection, it is so ordered. pothesis, and that the hypothesis is built Mr. CARLSON. Normally we hear it
(See exhibit 1.) on erroneous premises. I recognize that said that our storage costs are about a Mr. MILLER. Mr. President, I again some savings will be made to taxpayers, million dollars a day, for wheat, corn, thank the Senator from Kansas. I was but I dislike to see them exaggerated. and other commodities. That would be intrigued when I heard him mention the I ask unanimous consent that Mr. approximately $365 million a year.
article written by Sylvia Porter, which Freeman's letter dated November 12, Mr. MILLER. Yes. When only 150 he asked to have printed in the RECORD. 1963, relating to savings calculations, be million bushels of wheat are involved, as As the Senator knows, I have had some placed in the RECORD at this point.
against some 1,200 million
million bushels, difficulty with Sylvia Porter with respect There being no objection, the letter which are in storage, and which cost to some of her economic principles. It was ordered to be printed in the RECORD, only $200 million, how can we have the is interesting that she has taken the as follows:
same amount attributable to 150 million same figure of $225 million, which Mr. DEPARTMENT OF AGRICULTURE, bushels of wheat?
Freeman and the U.S. Department of Washington, D.C., November 12, 1963. At any rate, I decided that the thing Agriculture have put out, without givHon. JACK MILLER,
to do was to write to Mr. Freeman and ing it some scrutiny, which I am sure U.S. Senate,
find out how he arrived at his figures. she would have been very capable of Washington, D.C.
Finally I received his letter. I hope he doing. I hope that perhaps she will use DEAR SENATOR MILLER: This is in further will make it clear in future publications this colloquy as a basis for a future artireference to your letter of October 15, 1963, on this point that his figures were based cle on this subject. wherein you requested information concern
on a 5-year period of storage. ing the calculation of the reported $200 mil
At any rate, there will be some savlion savings in storage and other costs that
Furthermore, I hope he will revise the ings to the taxpayers, and I will be the would accrue from a sale of 150 million figure as to the annual transportation first to recognize them. I indicated that bushels of wheat to the Soviet Union and costs, because we are not, I hope, mov- if certain things were done, such as a cash the satellite bloc.
ing wheat from the elevators in the sale, or a sale on short term commercial To compute the $200 million savings, we State of the Senator from Kansas to credit, perhaps on the basis of 90 days, used costs recorded in the fiscal year 1962 per the elevators in Texas, or back and forth at a fair price, in the light of the existbushel of wheat in inventory on the average over a 5-year period. If wheat is not, in ing situation, which sees our allies makduring the year. These costs, in cents per fact, stored for 5 years, then of course, ing sales to the Soviet Union, leaving bushel, are as follows:
in light of the tightness of the private Uncle Sam holding the wheat sack, and Cents
trade, it appears that present circum- taking into account our balance of payStorage and handling
13. 53 Transportation -
stances would indicate that there would ment deficit problem, and our desire to
3.93 Reseal payments, etc..
not be anywhere near a 5-year storage do something in many ways toward imInterest
period for the wheat if it were not sold proving it, the United States would be to the Russians.
on the plus side as far as this wheat Total.---
26. 21 Mr. CARLSON. Mr. President, again sale to the Soviet Union is concerned. As you know, wheat is stored commingled I appreciate the information the Senator At the same time, that does not mean and, for our inventory accounting purposes, from Iowa has given in regard to the fig- that I will not criticize someone when it is disposed of on a first-in, first-out basis. ure of $225 million as a saving, because he tries to create an approving public Using recent wheat disposition history as a the general impression is that that is an opinion by playing up savings to the guide, wheat acquired in 1963 would remain
annual saving. in inventory for slightly more than 5 years.
The information the taxpayers beyond what they are. Let Based on that hypothesis, the savings on 150
Senator has given is very helpful. As us give the American people the facts. million bushels of wheat that otherwise
further proof that it is generally ac They do not need anything else. They would be in CCC holdings would eliminate cepted as an annual saving figure, in do not need to have Madison Avenue carrying charges of $196.5 million over a 5- yesterday's Washington Evening Star, window dressing on them. They do not
have to have exaggerations or half- be easy for Russia to pour on more ferti It makes me wonder about the world truths or mistruths. Give them the lizer, use more and more insecticides and price rule that the President laid down facts, and they will be all right. I am herbicides, and thus increase her produc- when he gave to the American people his quite sure that if they are given the tion of wheat and other commodities 20 conclusions concerning whether the profacts they will be able to make a sound to 30 percent.
posed wheat sale should be approved. I judgment.
We think we have a good agricultural suppose it is this kind of question that Mr. CARLSON. Mr. President, will production in the United States, but pro- prompted 10 Republican House Memthe Senator yield?
duction per acre in Japan is probably bers to call on President Kennedy to Mr. MILLER. I yield.
twice as much as it is in the United "reveal and explain" details of the neMr. CARLSON. The Senator from States. So Russia does not have to go gotiations on the wheat deal with RusIowa mentioned the sales that have been far to find new techniques to increase sia. The article states: made by other foreign countries to the greatly her agricultural production.
They contended that what had been origSoviet Union. In the statement I placed In my opinion, the United States would inally billed as a private trade deal was in the RECORD as a part of my remarks, be much better off to have Russia de
be much better off to have Russia de- becoming a “government-to-government” it is interesting to note:
pendent on us for a part of her food transaction. Statistics for 1962 show that West Ger- needs than to have Russia become self
Also, the Baltimore Sun for today, many trade agreements with Russia alone sufficient, as Hitler and Mussolini tried November 15, has published an article totaled about $700 million. Germany is now to do for their countries prior to their entitled “Guidelines on Grain Set.” the third largest industrial nation in the engaging in World War II.
The article refers to the guidelines with world. Italy has a 4-year trade agreement Mr. MILLER. I agree with the views respect to the shipments of wheat. It with the Soviets for $1.11 billion worth of of the Senator from North Dakota. will be recalled that when the President with Russia for $100 million in trade. India However, I think we must emphasize gave his approval of the sale
of wheat, he has a 4-year trade pact with Russia which what the President pointed out to the set forth as one of the
conditions that the provides annual trade of $440 million. Japan American people, namely, that we can
shipments be made in American-owned has a 3-year trade pact with Russia that calls not count on the sale of wheat to Rus- bottoms, if they were available. That for $365 million. The United States and sia as a basis for future agricultural pro- sounded good; but after a while news reRussian trade last year was $16 million each grams. We must look upon this trans- ports indicated that shipping charges in way.
action as a one-shot deal. We can be American-owned bottoms were higher by It is my contention that we cannot live quite sure that the Soviet Union and the
quite sure that the Soviet Union and the quite a bit than shipping charges in forin this age, in this period, without world Soviet bloc nations will do their utmost trade. As I said earlier, I favored the to see to it that they do not have another eign-owned bottoms, and that the Soviet
negotiators were not happy about that sale of wheat to the Soviet Union. Not crop failure.
and were resisting. only that, but I think the time has ar Mr. YOUNG of North Dakota. Mr.
Trial balloons, about which we read so rived for us to send out some people with President, will the Senator from Iowa
much in Washington area newspapers, briefcases, to sell in the world markets. further yield?
were sent up. Someone suggested that if Mr. MILLER. I thank the Senator
Mr. MILLER. I yield.
the charges for shipping in Americanfrom Kansas for his comment. The fig
Mr. YOUNG of North Dakota. They ures he has recited point up the facts of intend to become as nearly self-sufficient charges for shipping in foreign-owned life. It is all very well to talk in terms
as possible. A nation as big as Russia, bottoms, perhaps the American-owned of theories. I am all for theories. But
and having as much land as Russia has, bottoms were not available within the I think we ought to know where we are
can do so easily. going and why we want to get there. Mr. MILLER. That is correct. If context of the President's conditions.
this is to be a one-shot deal, as the
Sen- that situation to the point that it appears We have a condition to be concerned
But the negotiators finally got around about when we are trying to move toward ator from North Dakota has said, we that if the exporter can show that
he will our objective.
The condition is that we might as well let Russia spend its money ship the wheat 50 percent in American are not calling the turn on our allies. for our wheat, rather than spend it on
bottoms, and cut the cost somewhat, such I am not sure we could. Even if we something else, such as bringing more could, I am not sure it would be desirable land into production in the hope that an arrangement will be satisfactory. to force them to an isolation of the free there will be a good crop next year.
That is another reason why this entire world from the Communist world. Mr. YOUNG of North Dakota. In the proposition should be brought into the
The American people should Mr. YOUNG of North Dakota. Mr. past 11 years, the United States has open. President, will the Senator from Iowa purchased $92 million more in goods know not only what the President's conyield?
from Russia than Russia has purchased ditions were, but how they are being Mr. MILLER. I yield.
from us. In other words, Russia has re- met. It is fine to tell the people about
ceived $92 million of our money in the conditions; but it is much better to play Mr. YOUNG of North Dakota. There is something more important involved munism throughout the world. Russia conditions are being met and interpreted.
past 11 years to use in spreading com- fair with them and tell them how he than in the sale of wheat to Russia. We can do much more damage with our
Mr. President, I ask unanimous conmust consider our overall military secudollars than she can with our wheat.
sent that the articles from the New York rity and the effect it would have on the whole U.S. economy. How would the from North Dakota.
Mr. MILLER. I thank the Senator Times and the Baltimore Sun be printed
at this point in the RECORD. sale of wheat to Russia affect the se
Mr. President, the New York Times for There being no objection, the articles curity or the economy of our country? today, November 15, has published an were ordered to be printed in the RECORD,
Some 10 or 12 years ago the United
article entitled "Eight Million Dollars of as follows:
19631 of new land. Until a drought occurred the last 2 years, they had become net
The sale of 100,000 more tons of wheat to EIGHT MILLION DOLLARS OF WHEAT SOLD TO exporters of wheat. Now the Russians Hungary was disclosed today
HUNGARY—SECOND LOT OF 100,000 TONS
GETS $400,000 RAISE IN PRICE are engaged in a program of more That is, on November 14irrigation to increase wheat production.
(By William M. Blair) The Commerce Department announced
WASHINGTON, November 14.—The sale of That will prove to be rather expensive. that it had issued an export license for But their other program will succeed; the $8 million sale. This price is $400,000 100,000 more tons of wheat to Hungary was
more than was received for 100,000 tons sold that is, to pour on fertilizer, as we do.
that it had issued an export license for the more insecticides and herbicides. They That is what caught my eye. Why $8 million sale. This price is $400,000 more have not been able to purchase this mate- should the sale of wheat on November 8 than was received for 100,000 tons sold Norial from the United States, but we sell it have been for $400,000 less than the vember 8. The November 8 deal was the first to England and other countries, which amount for which the same quantity of sale of wheat to a Soviet-bloc country since in turn resell it to Russia. So it would wheat sold a week later?
President Kennedy approved sale of farm
products to Russia and satellite countries Owners of the bulk carriers have said they But it should be even more intriguing on October 9. need from $20 to $21 per ton as the rate from
to discover what happens to the foodBoth sales were made by Cargill, Inc., of the Gulf of Mexico ports to Odessa, compared
for-wages program which the United Minneapolis.
to the $18 figure set as the guideline by the The new Hungarian sale came shortly after Maritime Administration and the Depart- States entered into with Algeria back President Kennedy told his news conference ment of Commerce.
in June. Under this program, as set out that the atmosphere for trade with the So
in a New York Times article of June 26,
BASED ON 1957 COSTS viet Union as represented by the wheat deal
the United States agreed to furnish surhad been damaged by the arrest of Prof.
They have claimed that only ships of 30,Frederick C. Barghoorn of Yale University the $18 rate. 000 tons and more can afford to operate at plus food to Algeria to serve as part pay
ment of wages for 60,000 jobless Alon spy charges.
The rate out of the east coast ports would gerians.
The article also notes that U.S. assistThere still was no word on private nego The guidelines released today by the Mari ance in the form of surplus food contiations underway between grain merchants time Administration and the Department of tinues to help feed about 2.5 million and a Soviet wheat mission on the direct commerce are based on the 1957 costs, which needy Algerians, about one-fourth the sale of $250 million worth of wheat to Rus the industry has said are far too low in
population. It indicated, in addition, sia. Some official sources expected a deal at comparison with the actual costs of opera
that a third surplus food program on any time, especially now that the Commerce tion today. Department has published its official regu The rates are based on the following which an accord was near was a govern
ment-to-government arrangement under lations governing the cost of shipping wheat conditions: to Russia.
Mileage between the port of loading and
which the United States will provide The regulations issued today followed the port of discharge; loading and trimming ex wheat for the Algerian Labor Ministry outline disclosed last Friday by Under Secre- pense, discharge expense.
to use for its own food-for-wages protary of Commerce Franklin D. Roosevelt, Jr.
USE OF U.S. CARRIERS
gram without U.S. technical assistance. In effect, they set a ceiling rate of $14 to $18
The regulations today again pointed out Under this all-Algerian plan, about a ton for wheat shipped to Black Sea and
that at least 50 percent of the wheat and 300,000 jobless Algerians are expected to Baltic ports. These rates still are above
wheat flour will be exported on U.S.-flag vesworld charter rates, which officials still in
be employed. sels. If a U.S. carrier is not available at sisted were rising to close the gap.
If the Algerian people are so short of reasonable rates, exporters must obtain prior BELOW AID SCHEDULE authorization from the Maritime Adminis
food and so dependent upon the United The rates were established by setting them tration to ship less than 50 percent on
States in this respect, one wonders 20 percent below the schedules for foreign U.S. carriers.
where the Algerian Government is going aid shipments through Public Law 480, the Upon the completion of shipping arrange- to get the foodstuffs—including wheatsurplus disposal statute, for 10,000- to ments wheat and wheat flour exporters are to ship to the Soviet Union, in return for 15,500-ton U.S.-flag ships. The 20 percent now required, in addition, to notify the heavy equipment and guns. Could it be lower rates applied to larger ships, mainly Maritime Administration of the export li
that the food for wages will not go to tankers, of 15,600 to 30,000 tons.
cense number, the name of the carrier, the Guideline rates for vessels over 30,000 tons carrier's flag of registration, and the quan
the needy Algerians, but will go to Rus
sia, instead? will be subject to consultation on specific tity of the shipment. shipments, the Maritime Administration said. In addition to certifying shipping commit Mr. President, I think this is a matter
As worked out with the Russians, U.S. ments on license applications, exporters of of concern to us, not only because the flag ships will be used for 50 percent of the wheat and wheat flour must include a state- United
United States may again be shortwheat. This is the same division set down ment that these commodities were produced changed, but also because our surplus in law for foreign aid shipments. in the United States.
food sent to Algeria may wind up beThe maximum "fair and reasonable" rates The Department of Commerce also is reestablished by the Maritime Administration quiring all details of the financing arrange
hind the Iron Curtain. I believe this showed that shipments from North Atlantic ments, including the names of participating matter should be scrutinized very closely ports to the Odessa on the Black Sea are financial institutions, on the license appli- and an accounting should be made by $16.55 a ton for winter and $16.10 a ton for cations. If the financing arrangements are Algeria as to exactly where its Russian summer. From gulf ports to Odessa the not completed at the time applications are exports are to come from. same rates would be $18.02 a ton for both submitted, exporters must state on their I ask unanimous consent that two arseasons.
applications that the Office of Export ConFrom North Atlantic ports to Leningrad trol will be provided this information Trade Pact,” and the second entitled
ticles-one entitled "Russia, Algeria Sign on the Baltic Sea the maximum rates are promptly as soon as financing arrangements $14.35 a ton for winter and $13.98 for sum are completed.
“United States Signs Pact To Provide mer. The same rates from gulf ports to No exporter can sell more than 25 percent Food Aid to Algeria”- be printed in the Leningrad are $16.21 and $15.97, respectively. of the total quantity expected to be pur
RECORD. Ten Republican House Members called on chased in the United States.
There being no objection, the articles President Kennedy to "reveal and explain"
Mr. MILLER. Mr. President, a very
were ordered to be printed in the RECdetails of the negotiations on the wheat deal
ORD, as follows: with Russia. They contended that what had interesting article appeared in the Washbeen originally billed as a private trade deal ington Post of November 5. It relates [From the New York (N.Y.) Times, June 26, was becoming a "government-to-govern- to a major long-term trade agreement
1963] ment” transaction.
between Algeria and Russia, based on an UNITED STATES SIGNS PACT TO PROVIDE FOOD exchange of Soviet heavy equipment and
AID TO ALGERIA--FARM SURPLUSES TO BE [From the Baltimore (Md.) Sun, arms for Algerian food. The news arti
USED AS PART OF PAY TO EMPLOY JOBLESS Nov. 15, 1963]
IN RURAL AREAS cle indicates that, under the agreement, GUIDELINES ON GRAIN SET—APPLY TO FREIGHT Algeria will export to the Soviet Union
ALGIERS, June 25.--The United States RATES TO IRON CURTAIN COUNTRIES
signed today its first direct aid agreement wheat and flour, among other foodstuffs. with Algeria. It involved food and wages WASHINGTON, November 14.--The Department of Commerce today made public its original source of that wheat which will
It will be interesting to determine the and technical assistance, but little cash.
Under the accord, the United States agreed guidelines on freight rates for the transporta- be shipped to the Soviet Union and to furnish surplus food to serve as part pay, erning the applications to export agricultural whether the United States will be left ment of wages for 60,000 jobless Algerians. commodities to Iron Curtain countries. holding the bag in the long run.
These men will work on American-super
AcAt the same time, the Department granted cording to the August issue of "Wheat projects in four depressed rural areas-con
vised soil conservation and irrigation pilot an export license—the second granted—for Situation,” published by the U.S. Depart
stantine, Tizi-Ouzou, Orléansville, and the shipment of $8 million worth of U.S. ment of Agriculture, U.S. exports to Al Tlemcen. wheat to Hungary. geria during the July 1962 to June 1963
The use of American technicians and Althought a previous export license for period came to 9,971,000 bushels of planning sets these projects apart from 100,000 tons at a cost of $7,600,000, including wheat. The report also shows that 2,- food-for-work programs already underway transportation, had been issued last weekend, the company involved was having difficulty 211,000 bushels of wheat flour and bulgur in neighboring Tunisia and Morocco. obtaining American-flag ships at the 20-per- were shipped to Algeria under the foreign
LONG-TERM GAINS SOUGHT cent cut rate announced last week and pub- donation program during that same pe "Our idea,” said an American official, "is lished today by the Government. riod.
not just to create jobs, but to produce some