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Government of India:
Project assistance.

June 28, 1957 $234, 100,000.00 $215,022,977. 06

June 30, 1958 20,000,000.00 12, 486, 548. 41 Do.-

Nov. 3, 1958 35, 100,000.00 32,018, 100.48 Doc

Apr. 27, 1959 129, 700,000.00 54, 348, 335. 83 Sharavathi hydroelectric plant.. June 30, 1960 8, 400,000.00 3, 521, 624.91 (India) Ahmedabad Electricity Co.: Thermal power.


3, 900,000.00 3,754,874.07 Government of India.: Barauni thermal power.-

...do.--- 3,800,000.00 2,805, 024.12 Chandrapura thermal power. ---do. 30,000,000.00 | 14, 237, 982. 41 Duragapur power.

do... 20,000,000.00 11, 372, 389.25 Kanpur thermal power.

Dec. 5, 1960 1,600.000.00 1, 122, 635. 01 Barapani hydroelectric.


2,500,000.00 453, 725.36 3d railway loan.-

do.. 50,000,000.00 | 41, 954, 909.81 Capital equipment..


25,000,000.00 21, 388, 979. 77 Steel imports.


25,000,000.00 19, 911, 071. 13 (India) Industrial Finance Corp.: Development bank..

Dec. 7, 1960 10,000,000.00 4, 648, 936. 79 (India) Hindustan Chemicals & Fer

tilizers: Trombay fertilizer plant----| Dec. 29, 1960 30,000,000.00 21, 182, 272. 71 (Jordan) Transjordan Electric Power: Electric power project. -

June 5, 1959 1, 200,000.00 804, 868.00 Jordan Phosphate Mines: Phosphate mine expansion.---

Oct. 26, 1959 1,500,000.00 1, 269, 026. 36 (Lebanon) Banque de Credit Agricole,

Industrial et Fancier: Development bank.

May 4, 1960 5,000,000.00 3,193, 645. 56 (Lebanon) Societe pour L'Industrie

des Metaux, S.A.: Aluminum plant. Nov. 8, 1960 400,000.00 369, 590.05 Government of Nepal: Commodity assistance.

July 29, 1960 1,000,000.00 166, 151.00 Government of Pakistan: Project assistance..

Mar. 6, 1958 23, 600,000.00 22,393, 442. 47 Water sewage disposal.

June 30, 1958 5, 500,000.00 3,096, 423. 29 Railway rehabilitation.

Feb. 18, 1959 9, 100, 000.00 8,723, 313.20 (Pakistan) West Pakistan Water &

Power Development Authority: Land reclamation.-

-do.--- 15, 200,000.00 14, 691, 603. 27 Government of Pakistan: Karnafuli multipurpose dam..

-do---- 20, 250,000.00 17, 817, 096.85 (Pakistan) West Pakistan Water &

Power Development Authority:
Power transmission lines..

do...----- 14,700,000.00 10,301, 143.76 Government of Pakistan:

Secondary transmission grid.. June 29, 1959 23,000,000.00 | 14,684, 520. 60 Port facilities...

July 10, 1959 2,000,000.00 23, 188. 56 Inland waterways..

Sept. 12, 1959 1, 750,000.00 1, 430, 561. 12 (Pakistan) PICIC (2d): Development bank.

Jan. 15, 1960 10,000,000.00 9, 131, 011.49 Government of Pakistan: Railway rehabilitation.

Jan. 16, 1960 22,000,000.00 21, 905, 688.58 Indus water system.

Sept. 19, 1960 70,000,000.00 55, 090, 129.00 (Syria) Industrial Development Bank: Development bank..

Aug. 15, 1960 500,000.00 198,500.00 (Syria) Posts, Telegraphs & Tele

phones Administration: Telecommunications.--

Oct. 3, 1960 2,500,000.00 119, 916. 87 (Turkey). Industrial Development Bank: Development bank-

Sept. 12, 1958 10,000,000.00 8,065, 243. 67 (Turkey) Turkiye Komur Islemeliri

Korumu: Coal mining facilities. - Apr. 30, 1959 14,500,000.00 6,035, 856.10 (Turkey) ETIBANK: Électric power distribution.

Jan. 21, 1960 7,000,000.00 2, 591, 718. 40 Government of Turkey: Railway construction.

Dec. 13, 1960 6,000,000.00 792, 482. 24 (United Arab Repubiic-Egypt) Indus

trial Development Bank: Development bank.

Aug. 31, 1960 6,000,000.00 14, 123.00 (Uuited Arab Republic-Egypt) Ad fina Por L'Exportation de la Fabrication des Produits: Canning and freezing plant.

Oct. 7, 1960 200,000.00 139, 689.98 (United Arab Repubiic-Egypt) Al Nasr Co: Bagasse pulpmill..

Nov. 23, 1960 6,700,000.00 6, 277,836.83 Government of Burma: Project assistance.

Mar. 21, 1957 17,300,000.00 7,985, 247.65 Do.--


25, 000, 000.00 11, 680, 633. 86 Do.--

May 29, 1958 10,000,000.00 4, 933, 546. 74 Do..--

Aug. 12, 1960 800,000.00
Republic of China:
Multipurpose dam.

Nov. 10, 1958 21, 500,000.00 20, 439, 319.71 1st railway loan...

Nov. 12, 1958 3,032, 371.52 3,026, 024.34

(China) China Development Corp.: Development bank...

Mar. 24, 1960 $10,000,000.00 $3, 140, 835.80 (China) Taiwan Telecommunications

Administration: Telecommunications..

do...---- 2,000,000.00 1, 962, 451. 99 (China) Taiwan Power Co.: Nanpu thermal power.

Sept. 30, 1960 14, 910,000.00 13, 542, 827. 85 Government of Indonesia: Commodity assistance.

June 15, 1959 450,000.00 446, 167.74 Railway rehabilitation.

June 26, 1959 3,000,000.00 2,581, 209,35 Harbor development.


6,000,000.00 985, 195. 81 Government of Korea: Telecommunications.

Apr. 8, 1959 3, 500,000.00 3, 469, 163. 84 (Korea) Oriental Chemical Industry: Soda ash plant.

Dec. 11, 1959 5,600,000.00 298, 150.00 (Korea) Korean Reconstruction Bank: Development bank..

Apr. 12, 1960 5,000,000.00 507, 130. 15 Federation of Malaya:

Wharfage accommodations.. Mar. 18, 1959 10,000,000.00 8, 500, 171.44 Roads and bridges.-

- do.. 10,000,000.00 6, 773, 511. 80 (Philippines) Central Bank of Philip

pines: Small industry loan fund.. May 6, 1959 5,000,000.00 1, 287, 113. 52 (Philippines) Mindanao Portland

Cement Co.: Cement plant ... Oct. 26, 1959 3,700,000.00 3, 579, 582.32 (Philippines) Bataan Pulp & Paper Mill: Pulp and paper mill.

July 10, 1959 100,000.00 59, 589.75 Government of Philippines: Roads and bridges rehabilitation.

June 29, 1959 18,750,000.00 6, 350, 652.05 Government of Thailand: Project assistance..

June 28, 1957 10,000,000.00 9, 672, 867.14 Telecommunications projects. June 27, 1958 7,000,000.00 3, 999, 947. 20 (Thailand) Metropolitan Electricity

Authority: Electric power expansion

Mar. 6, 1959 20,000,000.00 12, 974, 942. 32 Government of Vietnam: Telecommunications project..

June 28, 1958 3,300,000.00 1, 138, 982. 40 (Vietnam) Vietnam Railway System: Railways

Aug. 10, 1960 9,700,000.00 1,694,047. 52 (Vietnam) Saigon-Cholon Water Dis

tribution System: Water distribution system.

Nov. 2, 1960 17,500,000.00 1, 264, 304. 25 Government of Bolivia: Runway construction -

Oct. 22, 1959 1,500,000.00 1,058, 028. 47 Government of Brazil: Project assistance.

Dec. 31, 1956 117, 895,000.00 84,472, 292.50 Government of Chile: Project assistance.-

Apr. 29, 1957 850,000.00 695, 724. 58 Do.--.

Dec. 27, 1957 27, 680,000.00 25, 460, 812. 53 Airport design.

May 20, 1959 300,000.00 103, 237.00 Airport construction (Pudahuel) - July 19, 1960 10, 500,000.00 Government of Colombia: Project assistance.

Feb. 4, 1958 12, 240,000.00 11, 141, 819.88 Do.-

May 29, 1959 3,140,000.00 2,878, 864. 46 Government of Costa Rica: Project assistance.

Apr. 29, 1957 2,000,000.00 1, 496, 320.63 Government of Ecuador: Project assistance..

Apr. 30, 1957 2,000,000.00 883, 582. 89 Do...

Nov 12, 1958 880,000.00 654, 129.16 Highway construction -

Mar. 23, 1959 4,700,000.00 3,058, 162.98 Do...

Nov. 6, 1959 4,004, 012.71 3,908, 616. 51 (Guatemala) Banco de Guatemala: Rubber production..

Aug. 17, 1959 5,000,000.00 750,000.00 Government of Haiti: Irrigation -- May 28, 1959 4,300,000.00 4, 251, 477.31 Government of Honduras: Highway development.

May 16, 1958 5,000,000.00 4, 560, 902.51 (Honduras) Empresa Nacional de

Energia Electrica: Canaveral hydroelectric

Sept. 9, 1960 2,800,000.00 1,786, 914.42 (Nicaragua) Empresa Nacional de

Luzt Fuerza: Rio tuma hydroelectric ---

June 30, 1960 2,500,000.00 1,077, 961.82 Republic of Panama:

Feeder roads.. Nov. 10, 1960 5, 300,000.00 2,874, 560.75 (Panama) Instituto De Acuedictos y

Alcantarillados Nacionales: Water supply and sewerage system.--


6, 1953 6,000,000.00 Government of Peru: Highway construction.--

Dec. 19, 1960 4,500,000.00 829, 885.46 (Uruguay) Administracion General

De Las Unimas Electricas y Los Telephonos De Estado: Telephone system.-

Sept. 3, 1959 8,800,000.00 6,844,876.57

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Source: “Agency for International Development-Status of Loan Agreements,” as of June 30, 1963, Office of the Controller, AID,

Mr. MANSFIELD. Mr. President, I of this body have expressed over the last overhaul is in order. One of the strongsuggest the absence of a quorum.

few days as to the provisions of H.R. 7885. est supporters of the foreign aid program The PRESIDING OFFICER. The There is much in this bill with which I stated on the Senate floor recently: clerk will call the roll.

find myself in direct opposition both as The question calls for a national commisThe legislative clerk proceeded to call to the basic idea underlying the program

sion on the highest possible level to reexamthe roll. and the performance with which the

ine the foreign aid program of the United

States and recommend how it may be reMr. MANSFIELD. Mr. President, I program has been implemented. It has

oriented and remain effective. I would very ask unanimous consent that the order long been my view that our foreign aid much favor such action, but that is a far for the quorum call be rescinded.

program is both improperly conceived cry from dismantling the program at this The PRESIDING OFFICER. Without and inefficiently implemented.

stage. objection, it is so ordered.

Even the most rabid supporters of the I am of the opinion that the report Mr. THURMOND. Mr. President, I foreign aid program have been reluc- issued in March of this year by the Presshare the concern which many Members tantly forced to the view that a major ident's specially appointed committee, commonly referred to as the Clay Com- vision of the Trade Agreements Act of tors which make it "impracticable" to take mittee, offers to Congress a unique op- 1934 authorizing the President to sus

such action at this time. portunity at this time to be instrumental pend the application of trade agreement

Sincerely yours,

BEN DORFMAN, in reassessing the foreign aid program. rates of duty to products of countries

Chairman. The Clay Committee was appointed on which discriminate against the comthe highest official level, and its conclu- merce of the United States or which pur

The Secretary of Commerce, the Honsions and recommendations should be sue policies tending to defeat the pur

orable Luther H. Hodges, replied as folcarefully considered by the Members of poses of the Trade Agreements Act. Un

lows: Congress. And yet, few, if any, of its der this particular provision, reduced DEAR SENATOR THURMOND: I refer to your recommendations have been included in trade agreement rates on duties were letter of March 9, 1963, concerning section the bill which is now pending before this withheld in pre-World War II years from

231 of the Trade Expansion Act of 1962,

which deals with body. imports of German products.


treatment of imports from Communist-domiMr. President, I request the attention Despite these particular exceptions, nated countries or areas. of my colleagues to one specific portion the State Department in years past has This is a matter which directly involves of H.R. 7885, concerning which too little persuaded the President that it would our treaty relationships with other nations, has been said. The provision to which serve a useful purpose for U.S. trade and which therefore is of direct and immeI make reference is section 402 of the agreement concessions to be made avail- diate concern to the Department of State. foreign aid bill. This provision would able to Yugoslavia and Poland. In re

That Department presently has under ad

visement the steps to be taken to carry out authorize the President to give the bene- cent years, articles imported from those

section 231, and I am forwarding a copy fit of U.S. trade agreement reductions countries have received the benefit of

of your letter to Secretary Rusk, with the in tariff duties to products imported all U.S. tariff rate reductions.

request that he furnish you full information from Communist countries when: First, Congress, in enacting the Trade Ex- concerning the matter. he determines such treatment would be pansion Act of 1962, which substantially

With best wishes, “important to the national interest”; replaced the prior Trade Agreements

Sincerely yours,

LUTHER H. HODGES, second, he determines such treatment Act, directed that the benefit of U.S.

Secretary of Commerce. would promote “independence” of the tariff reductions not be made available Communist countries “from domination to any Communist country. Unfortu

And finally and most importantly, Mr. or control by international commu- nately, section 231 of the Trade Expan

Frederick G. Dutton, Assistant Secretary nism"; and, third, he reports these de- sion Act of 1962, in directing the Pres

of State, replied on behalf of the Secreterminations and his reasons to the Con- ident to withdraw the benefit of trade tary of State as follows: gress.

agreement tariff reductions from Yugo- DEAR SENATOR THURMOND: Thank you for To understand the reason for the in- slavia and Poland, used the words “as your letter of March 9 to the Secretary askclusion of this provision in the foreign soon as practicable.” These words have

ing what steps have been taken to imple

ment section 231 of the Trade Expansion aid bill, it is necessary to briefly dis- been seized upon and used to effectively

Act of 1962. This provision requires that cuss the background of the tariff legisla- thwart the stated intention of Congress

the President take action “as soon as praction with which it is concerned. in adopting section 231 of the Trade Ex

ticable” to deny the benefits of most-faThe basic tariff act setting forth the pansion Act of 1962. Notwithstanding vored-nation tariff treatment to any counduties applicable to goods imported into the fact that the 1962 act became effec- try or area dominated by communism. the United States is the Tariff Act of tive on October 11, 1962, the State De- The only Communist countries which 1930. Under the Trade Agreements Act partment has taken absolutely no ac- presently have most-favored-nation status of 1934, and the 11 extensions of that tion to withdraw the benefit of all our are Yugoslavia and Poland. Yugoslavia has act, the President was authorized to re- trade agreement concessions from Yu

such status by virtue of the 1881 Treaty of

Commerce with the Kingdom of Serbia, a duce the rates of duty set forth in the goslavia and Poland.

predecessor state of the present country of Tariff Act of 1930. Most rates of duty In March of this year, some 5 months Yugoslavia. Poland was denied this status have been reduced one or more times after the effective date of the Trade in 1952, along with other Soviet-bloc counand the majority of them have been re- Expansion Act of 1962, I wrote letters to tries, pursuant to the terms of section 5 of duced several times. The total impact the Chairman of the Tariff Commission, the Trade Agreements Extension Act of 1951. of these duty reductions has been to the Secretary of Commerce, and the Sec

Poland was restored to most-favored-nation

status effective December 16, 1960, following lower the ad valorem equivalent of U.S. retary of State to find out what steps, if

conclusion in July of that year of an agreeduties from approximately 50 percent in any, had been taken pursuant to section

ment under which Poland is paying $40 mil1930 to about 12 percent in 1962. 231 of the Trade Expansion Act of 1962.

lion in compensation for the claims of Under a provision of the trade agree- Mr. Ben Dorfman, Chairman of the U.S. American nationals against Poland. ments law, known as the most-favored- Tariff Commission replied as follows:

The legislative history established during nation rule, tariff reductions granted by DEAR SENATOR THURMOND: This is in re- consideration of the conference report of the the United States to one country are sponse to your letter of March 9, 1963, in Trade Expansion Act indicates that the uniformly applicable to goods imported which you ask what steps, if any, the Presi

phrase "as soon as practicable" was infrom other countries. The most- dent has taken pursuant to section 231 of

tended to afford the President discretion in

determining when action should be taken favored-nation clause is customarily the Trade Expansion Act of 1962 with regard found in treaties of friendship, com

under the law. The timing of such action to imports from any country or area under Communist domination or control.

is under active consideration. merce, and navigation and in reciprocal

Section 257(e) (2) of the Trade Expansion

If I may be of further assistance to you trade agreements. Under a mostAct provides that action taken by the Presi

please do not hesitate to call upon me. favored-nation clause, each of the con- dent under section 5 of the Trade Agree

Sincerely, tracting countries promises to give to the ments Extension Act of 1951, and in effect on


Assistant Secretary. other contracting countries tariff treat- the date of enactment of the Trade Expanment as good as it accords to any third sion Act, shall be considered as having been

Mr. President, it is apparent from country, subject to specified exceptions taken by the President under section 231.

these answers that not only had nothing in most instances. Therefore, products of all countries or areas

been done to implement section 231 of designated by the President pursuant to secThe Congress enacted the most fation 5 as being under Communist domina

the Trade Expansion Act of 1962, but vored-nation rule into the Trade Agree- tion or control, continue to be excluded from that no action on the part of the execuments Act of 1934 by providing that the the benefits of most-favored-nation rates of tive branch was contemplated. Even duties proclaimed by the President un- duty by operation of section 257.

though the 1962 act became effective on der the act should apply uniformly to Products of Poland and Yugoslavia con- October 11, 1962, the State Department, articles brought into the United States tinue to receive most-favored-nation tariff in more than a year's time, has taken from the country with which the partreatment. Although no formal steps have

absolutely no action to withdraw the ticular agreement is made and from been taken by our Government to discon

benefit of our trade agreement concestinue this treatment, it is understood that other countries generally. One quali. One quali- the matter is under advisement by the ad

sions from Yugoslavia and Poland. This fication of the policy of equal tariff treat- ministration. Section 231 provides that such

amounts to an utter disregard for the ment based on the principle of the most- action shall be taken "as soon as practicable.” mandate of Congress and is in direct favored-nation clause stems from a pro- The Commission is not advised as to the fac- contrast to past occurrences.

In 1951, the Trade Agreements Exten- slavia, George F. Kennan. The meager tional Security,” pictured in very graphic sion Act of 1951 contained a similar pro- amount of testimony which is available terms the challenge of the Sino-Soviet vision directing the President “as soon falls far short of that required for Con- bloc. By devoting its economic producas practicable” to suspend the benefit gress to overrule its previous enactment tion to destructive purposes rather than of trade agreement concessions from all which is contained in section 231 of the to the benefit of its own people, the SoCommunist countries. The 1951 act be- Trade Expansion Act of 1962.

viet bloc is in a position at times of its came effective on June 16, 1951. By Au- Last year, a congressional study mis- own choosing to wage economic warfare gust 3, 1951, less than 2 months later, sion in Europe made a very enlightening on the strategic industries of the United President Truman had issued a proc- report concerning the economic offensive States. Under Secretary Fowler realislamation taking the necessary action. which the Soviets are continually carry- tically recommended the adoption by the The provisions of the act of 1951 were ing on. The report of this study mis- United States of “a program covering aimed at some 13 countries. In the sion has been printed as House Report ordinary normal trade with the bloc in proclamation which President Truman No. 32.

a manner that will protect private trade issued, he instructed the Secretary of As a result of the group's on-the- from the abuses of bloc state trading the Treasury to assess the full rates of ground study of the problem, it unani- techniques.” One such measure is readduty provided in the Tariff Act of 1930 mously concluded that economic and ily at hand simply by having the Presion imports from named Communist trade warfare is being used as an im- dent overrule the State Department and countries. Some few months later, portant instrument of Soviet worldwide obey the directive of the Congress in the President Truman effected the with- strategy. At this particular time, the Trade Expansion Act by withdrawing drawal of trade agreement benefits from principal commodity being used for this from Poland and Yugoslavia the benefit four additional Communist countries. purpose is oil. In the past, aluminum of the reductions in U.S. duties contained

The State Department fought tooth and other commodities have been used. in our trade agreements. and nail the enactment of section 231 of No one can predict with any degree of It is important to note in this regard the Trade Expansion Act of 1962 in the reliability which commodities or prod- that none of these concessions was made form in which it became law. After the ucts the Soviet bloc will select in the fu- in trade agreements with either YugoState Department lost this legislative ture when it desires to disrupt the free- slavia or Poland. We will not be violatbattle, it nevertheless determined that it world markets and weaken the industries ing any of the terms of the agreements would not carry out the directions of the of this or other countries in the Western with those Communist countries; rather, Congress that most-favored-nation ben- World.

we will be suspending their enjoyment efit of our tariff concessions be with- The Soviet bloc already possesses con- of trade concessions for which they paid drawn from Yugoslavia and Poland. siderable economic and technological po- nothing, which they do not reciprocate,

The State Department recognized that tential from disrupting Western markets and which facilitate their economic penit would be difficult, if not impossible, to and creating this type havoc. Foreign etration of U.S. markets. secure the approval of the Congress for trade by Communist countries is con- Mr. President, it seems that with the such legislation if the matter were ducted by State trading enterprises. notable exception of the Department of brought up through normal legislative These are merely puppets which are

These are merely puppets which are State the whole world is completely channels. Normal legislative channels manipulated by the Communist con- aware of the destructive potential of the would require that such a proposal first spiracy when the grand design for the state trade techniques used by Commube considered by the Ways and Means destruction of the United States and the nist countries, including Yugoslavia and Committee of the House of Representa- entire Western World makes it seem ap- Poland. No less an authority than the tives and the Finance Committee of the propriate. In 1961, the Soviet bloc expropriate. In 1961, the Soviet bloc ex- Executive Secretary

Executive Secretary of the General Senate. In order to circumvent this ported $15.6 billion worth of commodi- Agreement on Tariffs and Trade disnormal procedure, the State Department ties. As it happened, only a small per- cussed this objectionable feature of trade strategy was to include a suitable provi- centage of these Communist exports were by Communist countries in an address sion in the foreign aid bill. Of course the sent to the United States. The impor- delivered in Warsaw in June of 1961. foreign aid bill does not come before the tant point to remember, however, is that He stated: Ways and Means Committee of the the Communist countries do possess a

To many contracting parties it appears House of Representatives or the Finance surplus production and an ever-present that the Polish trading system is such that Committee of the Senate. Instead, it

Instead, it export potential. When the moment ar- Poland cannot in practice offer to their excomes before the Foreign Relations Com- rives for them to deal a blow to this coun- porters the degree of nondiscriminatory acmittee which would more readily ac- try, they possess the means of selecting cess, subject only to a defined degree of tariff quiesce in the wishes of the Department products of importance in the markets

products of importance in the markets protection, as Poland would acquire as a conof State. For that reason, the determi- essential to the economic health of our

tractual right under the general agreement. nation was made that the use of the strategic industries.

It is significant that the United States foreign aid authorization bill as a vehicle It is well known that the state trading is one of the few countries in the world for overruling section 231 of the Trade enterprises of Communist countries are which gratuitously extends to Poland Expansion Act would have a greater able to fix prices for export sales at and Yugoslavia most-favored-nation chance of success.

will. This power to set prices arbitarily treatment. Poland is not now a member H.R. 7885, as it passed the House of permits Communist countries to dispose of GATT, and will not be entitled to Representatives, did not contain this of surplus production by dumping it on most-favored-nation enjoyment of the provision overruling the mandate of Con- the world market in a manner which reduced tariff duties of the member gress in section 231 of the Trade Expan- suits their objectives. The availability countries of GATT unless and until she sion Act of 1962. It was, however, con- of the reduced trade agreement rate ap- becomes a member of that organization. tained in the Senate version of this bill, plicable to imports of such products helps

plicable to imports of such products helps When the President withdraws the beneS. 1276. The amount of testimony of- the Communists in their dumping opera

the Communists in their dumping opera- fit of our trade agreement concessions fered to the Foreign Relations Commit- tions.

from Poland, as he is directed to do by tee in connection with this particular The State Department's obstruction section 231 of the Trade Expansion Act, section is negligible in comparision with ism in carrying out the will of Congress the resulting situation will be no differits importance. The Secretary of State, as expressed in section 231 of the Trade ent than that which now confronts the witness who should be required to Expansion Act is part of its program of

Expansion Act is part of its program of Poland in its trade with other countries carry the burden of proof, devoted only wooing over Marshal Tito. The State of the West. To continue the quotation one small portion of his statement to this Department's overture to Tito seems to

Department's overture to Tito seems to from the address delivered by the Execusection of the bill. This can be found be contrary to the views and recommen- tive Secretary of GATT, Mr. Eric Wyndbeginning on the bottom of page 14 and dations of other branches of the execu- ham White: the top of page 15 of the printed hear- tive department. In October 1962, Un

Polish import policy is an integral part ings.

der Secretary of the Treasury Henry H. of its economic plan. The plan allocates to In addition to this, a memorandum Fowler, in addressing the National De- the import sector only that part of conwas prepared for the use of the commit- fense Executive Reserve on the subject sumption which cannot be met by planned tee by the former Ambassador to Yugo- of "Our Industrial Economy and Na- domestic production. There is therefore no possibility of competing on equal terms with state and it is the agents of the state Communist country from control by inPolish domestic products, nor of penetrating who make the decisions concerning

the decisions concerning ternational communism. Of course, this Polish markets on the basis of competition prices and export policies.

prices and export policies. The recent power which is being given to the Presiin quality and price.

GATT report on trade in agricultural dent would in actuality be delegated to The GATT Secretary pointed out: products, in dealing with Yugoslavia, sets the Department of State. In reality, they Both the volume and direction of trade forth the views of members of Commit- are asking for this power on their own (with Poland) is arbitrary and not subject tee II, which conducted the study, that behalf. to the play of market forces so much as to

the state sets export prices for agricul- At the present time, the official State administrative and governmental decisions.

tural products, and that there are many Department policy is to recognize the exThis exists not only on the import side interventions in the Yugoslavian system

interventions in the Yugoslavian system istence of an ideological struggle within but also in Poland's export trade. The which limit the free play of market the Communist world between Red China GATT Secretary declared: forces.

and the Soviet Union. The State DepartExport prices, too, present a problem for Mr. President, the Soviet bloc countries ment, acting on behalf of the President, which normal antidumping provisions are in- have a planning body called the Council might well make a determination under adequate, because the normal elements of for Mutual Economic Assistance, known section 402 that granting most-favoredprice formation are lacking or difficult to by the letters CMEA. That group

nation treatment to any of the Commuestablish. A control of imports from Poland

worked out a set of principles for the nist satellite countries would promote is therefore necessary to make good this

International Socialist Division of La- their lining up with the Soviet Union deficiency.

bor. It includes the following state- against China, or vice versa. In their Mr. President, it is completely true, as ment:

view, this would promote the independthe GATT Secretary, Mr. White, explained in his address in Poland, that system of price formation on the world

It is necessary continually to perfect the

ence of the beneficiary nation from

control by whichever of the two Commucountries like the United States are

Socialist market in keeping with the re- nist giants, China or Russia, that the powerless to defend themselves from quirements of the planned extension of the State Department felt at the time would destructive imports from these Commu- International Socialist Division of Labor, a most likely emerge victorious in the ultinist countries. Our procedures, geared steady expansion of trade, and the acceler

mate decision. to the prevention of disruption in the ated development of the world Socialist econ

Mr. President, it is impossible for benemarketplace where prices are established omy, while creating conditions for the gradby business organizations, simply do not

ual changeover to an independent price fits to be extended to one Communist basis.

country which do not become readily accomplish the job in dealing with prod

available to the whole Communist conucts that are exported by state trading This statement, translated into ordi

spiracy. All that is required is that enterprises with the power deliberately nary language, means that for a long goods originating outside of Yugoslavia to price them below any level of control time to come the Communist countries or Poland be sent to those countries for that can be achieved in the country of will set prices deliberately at whatever

transshipment. If the markings on the destination.

level is required to further the Commu- containers are changed to indicate that For this reason, it is madness for the nist objective of expanding their eco- Yugoslavia or Poland is the country of United States to facilitate destructive nomic system throughout the world. origin, it would be impossible for U.S. imports from Communist countries in the When it is no longer necessary for the

customs authorities to penetrate the Iron future by dismantling the tariff rates of Communist system to use arbitrary

Curtain so as to establish the facts conduty which would apply if trade agree- prices as a weapon of attack against the

cerning the actual country of origin. ment concessions were not available to West, they will then consider some sys

Hence, no mistake should be made about them. tem of normal pricing, but not before.

the fact that granting most-favored-naMr. President, it is true that Yugo- Mr. President, the Senate of the

tion benefits to one Communist country slavia put a new general customs tariff United States is engaging in the futile

extends it to all Communist countries for applicable to all imports into effect in exercise of wishful dreaming if it seri

use at such times as Khrushchey's ecoMarch of 1961. Furthermore, it must ously thinks that granting a most-fa- nomic lieutenants decide that it would also be pointed out that Yugoslavia is vored-nation treatment to these two

further the Soviet Union's or Communist applying most-favored-nation rates of Communist countries will successfully

China's common objective of burying the duty to imports from all sources. It is lure them away from the Communist

United States. also true, however, that Yugoslavia has bloc. The assertions made on the Sen

Section 402 of the foreign aid bill, retained a system of import and export ate floor by myself and other Senators therefore, is not

only an attempt to overa controls superimposed upon the tariff. which led to the inclusion of section 231

rule the public policy insisted upon by Imports, with some few exceptions, are in the Trade Expansion Act of 1962 are

the Congress in the enactment of the subject to a licensing requirement. For- just as valid today as they were then.

Trade Expansion Act of 1962—namely, eign exchange is allocated and controlled The State Department officials and oth

that the most-favored-nation benefit of in such a manner that these licenses ers in the executive branch of the Govare sparingly granted. On the export ernment have not changed their attitude our tariff concessions should be withside, the Yugoslavian Government sub- nor have they cited any new or addi- also goes far beyond any previous line

drawn from Yugoslavia and Poland-it sidizes the exportation of products rep

tional information which tends to prove of demarcation on the subject of Comresenting a substantial part of Yugo- that their high-flown theory that both

munist eligibility for the most-favoredslavia's total exports. These export pre- Yugoslavia and Poland are independent nation benefits which we grant the namiums may be as much as 32 percent of of domination by the international Com

tions of the free world by permitting the the value of the product being exported. munist conspiracy is accurate.

President in his sole discretion, at times In the final analysis, Yugoslavia re- Having persuaded the President to mains essentially a state trading enteragree to the inclusion of a provision favored-nation privileges to any Com

of his own choosing, to grant mostprise in foreign trade. As stated by the dealing with section 231 of the Trade Ex

munist country. report of the GATT working party on its pansion Act in the foreign aid authori

The report of the Senate Committee second annual review of relations with zation bill, the State Department has also

on Foreign Relations, approving the forYugoslavia, on December 7, 1961, the asked for the power to broaden the au

eign aid bill, refers to section 402 comYugoslav system is of a special nature; thority that would be conferred on the

mencing at page 39. The report's treatthere are no private traders and there President beyond merely Yugoslavia and is no place for the concept of private Poland. Poland. The language of section 402 of

ment of section 402 is misleading. In ownership of the means of production or H.R. 7885 would not only allow the Pres

its first sentence it indicates it is deof the objects of commerce in the Yugo- ident to extend most-favored-nation

extend most-favored-nation signed to permit the President to extend

most-favored-nation treatment to Comslav social system. And while the work- treatment for imports from the Commuing party concluded that the Yugoslav nist countries of Yugoslavia and Poland, nist countries of Yugoslavia and Poland, munist countries. The fact is that under

. system was not properly a monopoly but it would also empower him to grant the law these Communist countries alor state trading, the fact of the matter that privilege to any Communist coun- ready have most-favored-nation treatis that the means of production and the try when he decided that such action ment and will continue to have it so fruits of production are owned by the would promote the independence of that long as the President continues to ignore the mandate in section 231 of the Trade

revenue year after year. Not only are

Not only are U.S. Aid to Western bloc nations (1946–62)— Expansion Act. we doing the people of the United States

Continued The report is weak in the emphasis it and future generations a grave injustice Portuguese oversea provgives in the second paragraph to the by attempting to do so, but we are also inces..

$25, 300,000 fact that the President was directed to endangering the survival of freedom.


2, 195, 600,000 withdraw most-favored-nation treat


110,000,000 Mr. President, the October 21, 1963, ment was soon as practicable.” He has


3, 711, 400,000 Dan Smoot report contains some very United Kingdom.failed to do so in more than a year.

12, 528, 300, 000 revealing statistics concerning our for- United Kingdom territories-- 1, 110, 000 October 11 was the anniversary of the eign aid program. Mr. Smoot says: Europe, general.-

2, 611, 500,000 effective date of the Trade Expansion

The official public debt of the United States Act. represents money already spent, in excess


73, 106, 110, 000 The final sentence in the first para- of revenue. It does not include contingent U.S. aid to Communist bloc nations graph of the report is somewhat mis- liabilities (literally trillions of dollars which

(1946-62) leading, to the extent that it suggests the Government has committed itself to


$90, 500,000 that the effect of section 231 is only to spend in future years). On December 31,


28, 700,000 penalize Yugoslavia and Poland. This 1962, the official public debt of the United

Poland section was not so restricted, but applies States was $303,470,080,489—which was $24

967, 900, 000 billion more than the total indebtedness of


500,000,000 to all Communist countries, and when

Yugoslavia. all other nations on earth.

3, 290, 300, 000 the force of this section is ruined by

Yet, President Kennedy demands another section 402, then the President has au

$412 billion foreign aid bill. Why? Foreign

4, 877, 400,000 thority to decide it is in the interest of aid has been the means of implementing the U.S. aid to Latin American nations (1946–62) this country to extend the benefit of re- 1944 Bretton Woods scheme to give away Argentina..

$1,027, 300,000 duced duties to each and every Com- our wealth until America is reduced to the Bolivia.

286,400,000 munist nation in the world, except posstatus of a weak and dependent unit in an Brazil..

3, 193, 400, 000 sibly Russia. interdependent one-world Socialist system. British Guiana..

2, 600, 000 The report makes out a very weak From July 1, 1946, to June 30, 1963, the British Honduras.-

2, 600,000 case for favoring Yugoslavia, particularly United States gave away abroad $148,456,- Chile

904, 700, 000 333,000. The following tabulation, showing Colombia--

576, 100, 000 in the discussion of trade with Yugowhere the money went, does not include great Costa Rica.-

136, 700, 000 slavia. On page 40 the report notes that sums of money and goods, in private giving, Dominican Republic----

9, 400,000 U.S. imports from Yugoslavia amounted which have flowed from America to foreign Ecuador---

139,000,000 to $48.3 million and that U.S. exports to lands. It does not include billions in aid El Salvador.

23, 400, 000 Yugoslavia amounted to $154.1 million. which American Industries have provided by Guatemala...

207, 900, 000 This apparent balance of trade in our building plants and making other invest- Haiti.

127, 700,000 favor is effectively destroyed when there ments abroad. A heavy percentage of the pri- Honduras.

54, 300,000 vate American investments abroad has been Jamaica. is deducted from our exports to Yugo

11, 200, 000 artificially stimulated by our Government Mexico.--

1, 246, 500,000 slavia the estimated $131 million of exthrough guarantees against loss, under- Nicaragua

98, 400,000 ports which have been financed by the written by tax money, for the specific purpose Panama

121, 100, 000 United States under various AID and of aiding the foreign nations. The following Paraguay

68, 600,000 other loan programs. To this extent, tabulation does not include billions of dol- Peru.

630, 600,000 our exports to Yugoslavia have not been lars' worth of agricultural goods which we Surinam (Dutch Guiana)

3, 100, 000 exports which offset imports in the true have sold to foreign nations at subsidized Uruguay---

120, 400,000 Venezuela.

333, 600,000 sense. The ultimate result is an adverse prices, with American citizens paying the subsidies. The tabulation does not include West Indies Federation..

12, 600,000 balance on commercial trade to the exall agricultural surpluses which we have sold Latin America, general.

240, 500,000 tent of approximately $25.2 million.

to Communist nations like Poland and YugoA similar calculation can be made in slavia and to neutralist nations like India, Total----

9, 578, 400,000 the case of Poland. The report shows for local currencies. In such sales, we ac

U.S. aid to Afro-Asian bloc nations that U.S. imports in 1962 from Poland cept payment in the currenty of the nation

(1946–62) were $45.6 million, and U.S. exports to which receives our goods. We can use a small Poland during 1962 were $94.5 million. ing expenses of missions and embassies, and Burma... amount of such local currency to pay operat- Afghanistan..

$275, 600,000 But when there is deducted from the U.S. to offset dollar accumulations, in those coun

138, 900, 000 Cambodia.

298, 000, 000 exports the estimated $64 million of extries. Most of the local currency, however, Cameroon.

2,400,000 ports which were financed by U.S. tax- is worthless to us and is spent on aid projects Ceylon----

124, 100, 000 payers, it is obvious that on commercial in the countries involved.


100, 000 trade there is an adverse balance of

Congo (Brazzaville) ----

100,000 trade against the United States. In this sent to have printed in the CONGRES- Cyprus Mr. President, I ask unanimous con- Congo (Léopoldville)

24, 100, 000 case, it is approximately $15.1 million.

19,000,000 SIONAL RECORD at this point in my re- Dahomey

4, 200, 000 Mr. President, there is no tangible

228, 400,000 reason why section 402 of the foreign aid marks a tabulation of U.S. foreign aid to Ethiopia --

1,535, 200, 000 bill should be enacted into law. It would the different countries of the world from French Indochina


100, 000 be detrimental to the national security 1946 to 1962 which is contained in this


5, 700, 000 of our country. Even from a purely issue of the Dan Smoot report.


5, 208,300,000 commercial standpoint, the enactment There being no objection, the tabula. Indonesia..

976, 100, 000 of this section would undoubtedly benetion was ordered to be printed in the Iraq----

69, 900,000

Iran.fit the Commnist bloc. Unfortunately, RECORD, as follows:

1,340, 700,000 Ivory Coast

2, 100, 000 Mr. President, the Senate rejected the U.S. Aid to Western bloc nations (1946–62)


349,500,000 amendment which was offered to elim- Austria ----

$1, 618, 300,000 Kenya---

9,500,000 inate section 402 from H.R. 7885. This Belgium-Luxembourg

2, 166, 700, 000 Korea.

6, 143, 000, 000 action on the part of the Senate as a China (Nationalist) -

4, 789, 600,000 Laos--

372, 700, 000 whole provides me with ample reason to Denmark.--

887, 400, 000 Lebanon..

110,500,000 vote against this measure even if the rest

11, 397, 300,000 Liberia-

199, 200,000
French territories..
6, 000, 000 Libya.

243, 600,000 of the bill were acceptable.

7, 576, 900, 000 Malagasy--

500,000 However, the rest of this measure con- Germany (Berlin)-

143, 900, 000 Malaya---

24, 400,000 tains the same objectionable features Greece--

3, 943, 200,000 Mali_

3, 100, 000 which have been brought before the Iceland ---

78, 800,000 Mauretania

1, 700, 000 Senate in past years. Basically, the is

146, 200, 000 Morocco

395,500,000 sue is one of economic stability versus

1, 211, 400, 000 Nepal---

64, 800,000 bankruptcy. The United States, which

7, 466, 800, 000 Niger---

2,000,000 is the last and strongest remaining bule Netherlands.

6, 146, 800, 000 Nigeria---

19, 800,000 2,687, 400,000 Pakistan---

1,982, 100, 000 wark of freedom, cannot continue to Norway--

1, 159, 700,000 Philippines--

2, 683, 700, 000 spend more money than it derives in Portugal..

136, 800, 000 Rhodesia-Nyasaland...

55, 700, 000

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