« ПретходнаНастави »
responsive to the will of the people, an en- “CCC Export Credit Sales Program
APPLICATIONS lightened citizenry, that we can achieve the How It Works.”
U.S. exporters apply to the Office of the ideals of a democratic and free people.
There being no objection, the bulletin General Sales Manager, Foreign Agricultural was ordered to be printed in the RECORD, Service, U.s. Department of Agriculture,
Washington, D.C., under credit announceSALES OF SURPLUS COMMODITIES as follows:
ment GSM-1, revised, giving: (a) dollar FOR EXPORT ON CREDIT CCC EXPORT CREDIT SALES PROGRAM—How It amount of commodities desired to be pur
WORKS Mr. HUMPHREY. Mr. President, I
chased; (b) commodity or commodities deCOMMODITY AVAILABILITIES
sired; class, grade, quality, and quantity; wish to comment with respect to the export program and the relationship of the Commodities eligible under the CCC export port of export and country of destination;
credit sales program are those in CCC invenCommodity Credit Corporation to it.
(c) period during which it is desired that tory as listed in the CCC monthly sales list, purchases be made; (d) period of deferred The Commodity Credit Corporation and tobacco under loan to Coc. During 1962 payment desired; (e) the extent to which has a program under which sales of sur- the following commodities were in ccc in
credit will be extended to the importer; (f) plus commodities in its stocks are sold ventory and thus eligible for financing:
name of bank in United States which will
assure payment. for export on credit guaranteed by pri- butter, nonfat dry milk, cheddar cheese, cot
(Exporters desiring to purchase tobacco on vate banks. I underscore “guaranteed ton (upland and extra long staple), peanuts,
credit apply under GSM-2.) by private banks,” because the argument corn, wheat, oats, barley, rye, grain sorlast night and the discussion today on ghums, rice (rough and milled), dry edible
Mr. HUMPHREY. Mr. President, I the Mundt amendment related to credits pentine. CCC has from time to time sold out beans, cottonseed oil, refined, and gum tur
ask unanimous consent to have printed that were guaranteed by the Government of certain of these commodities.
at this point in the RECORD an editorial bank, the Export-Import Bank. It was
entitled "Bonn's Opening to the East."
COUNTRY LIMITATIONS made quite clear in the colloquy today
The editorial was published on May 14, with the Senator from South Dakota trol policies and regulations as referred to
U.S. Department of Commerce export con
in the New York Times. [Mr. MUNDT] that sales of Commodity in the applicable ccc commodity export
There being no objection, the editorial Credit Corporation stocks guaranteed by program announcements are applicable with
was ordered to be printed in the RECORD, private banks do not fall within the pur- respect to export of agricultural commodities as follows: view of his amendment and the resolu- to certain Communist or Communist-con
[From the New York Times, Nov. 14, 1963] tion that was referred to the Committee trolled countries and areas.
BONN'S OPENING TO THE EAST on Banking and Currency. Nor do the
PERIODS OF DEFERRED PAYMENT
In a move that could ease European tensales guaranteed by private banks or
CCC will defer payment for periods up to sions, West Germany is seeking to improve financed by private banks fall within the 36 months, depending upon credit need, and relations with Communist-ruled countries in purview of the discussion relating to Gov- country of export.
Eastern Europe. Following agreements with ernment assistance in the financing of
Poland and Rumania to expand mutual sales of commodities to Communist coun
Interest will be charged at the rate speci
trade and establish West German trade mistries. These are commercial loans for fied in each credit approval and shall run
sions in their capitals, Bonn has now reached export to hard-currency countries, and for the length of the deferred payment
a similar agreement with Hungary, and nenot in any sense guaranteed by the period.
going on with Czecho
slovakia and Bulgaria. Government.
These agreements are in line with ChanThe credit is extended to U.S. export For all purchases made under this program,
cellor Erhard's middle-of-the-road policies, ers. The exporter has to arrange for a there will be required an assurance of pay
more flexible than those of his predecessor. U.S. bank to guarantee the payment, and ment from a bank in the United States.
They still fall far short of diplomatic recogin this instance the payment is to the This may be in the form of an irrevocable nition, which West Germany refuses to any
letter of credit; an endorsement on a note Commodity Credit Corporation,
country recognizing the East German regime. The period for which credit is extended draft accepted by the bank; or some other executed by any party to the transaction; a
But the trade agreements, supplemented by ranges from 6 months to 36 months.
German promises to promote understanding form of bank assurance acceptable to CCC. Since July 1, 1963, credit sales have A foreign agency bank licensed under New
for East European trade interests within the been made under this program for more York law, will qualify as a bank in the United European Economic Community, are regard
ed in Bonn as the first steps toward a reconthan $65 million. It has been planned to
ciliation which would help to meet Eastern make sales under this program for export
Europe's urgent need for Western goods, to Bulgaria, Czechoslovakia, Rumania, The exporter is not obligated to buy com make it less dependent on Soviet Russia and and Hungary. Again, these are sales, modities from CCC when granted a credit
perhaps ultimately pave the way for a soluthe credit for which is guaranteed by approval. If he is going to use the credit ex
tion of the problems of German reunification private banks, not by a Government in- tended, however, he must purchase the com and European security.
modities within the purchase period specistrumentality.
As a small advance in this direction, West fied in the credit arrangement. Upon acIt is believed that it would be helpful ceptance by CCC of the bank obligation,
Germany has won the approval of its new to our foreign policy if these Eastern CCC will not hold the exporter responsible
Eastern trade partners for inclusion of West
Berlin in the "West German mark area." European satellites were less dependent for the purchase price plus interest, but
But Soviet resistance to any recognition of upon the U.S.S.R. Sales to them would will look only to the U.s. bank for payment.
West German rights in Berlin continues to help to achieve this purpose. We have to the extent that the bank obligation is
hamper trade relations with the U.S.S.R., the surplus commodities in Government issued on the basis of the importer's line of
whose hostile attitude makes it easier for stocks, and the benefits we realize from credit, the exporter's line of credit will not
Bonn to agree with the United States on a their sale is almost entirely a net gain, be used.
policy of barring long-term credits for the
PURCHASES both in terms of balance of payments
Soviet bloc. Trade is a potent political
Purchases of commodities on credit are and in Government receipts.
weapon, but without such credits its uses made in accordance with applicable CCC ex remain strictly limited. It would be foolish for us to shut the port sales announcements to the extent that door on this commercial market when we the commodities are available in ccc in
Mr. HUMPHREY. Mr. President, I are trying so hard to make the same kind ventory at the time of purchase. In accord
hake this statement and submit these of sales to other commercial markets. ance with these announcements, the exporter items for printing in the RECORD because At present there is an active interest in will present to cCc proof of exportation of last evening, when the Senate was enexporting tobacco, corn, wheat, and vege- provided in the anouncement after the comthe commodities or subsitute commodities as
gaged in debate on the Mundt amendtable oils to satellite countries. I am not modities have been exported. Purchases will
ment—which today was withdrawn, I speaking of the Soviet Union; I am be made during the period provided in the
commented on the recent trade agreespeaking of satellite countries. Other credit arrangement for such purchases.
ments negotiated by the Federal Repubcountries in Western Europe are actively
lic of Germany with certian of the satel
CARGO PREFERENCE ACT competing for this market. Undue
Provisions of Public Law 664, 83d Congress
lite countries—in particular, with Poland delays in making credit available will (the Cargo Preference Act requiring ship
and Rumania. reduce the possibility of the sale. ment on U.S. flag commercial vessels) are not
I do not want my remarks in regard to I ask unanimous consent to have applicable to export sales under the CCC Germany to be interpreted as critical or printed in the RECORD a bulletin entitled export credit sales program.
in condemnation of that country. I fully
recognize the importance of German in- it truly is—a hemispheric program in But I say it is making progress and it dustry and the importance of having the which all of us are partners.
is vital to progress in this hemisphere; Federal Republic of Germany have a This great victory represents the first and I say that until someone can show strong economy. Chancellor Erhard's major breakthrough in making the Alli
us a better way, we had better stick with policies have produced rather amazing ance for Progress a real alliance of the this way—the way of the Alliance for and miraculous results for the German countries of Latin America, which with Progress. economy.
our help can achieve the great goals of With further reference to the speech I merely suggest that the Germans, the Alliance. It represents a very im- by Mr. Goulart, whom I have been priviwho often are known as good professors, portant step toward greater involvement leged to know, and he is the President might well be listened to in this instance of the Latin American countries in im of a great country and a great people I in connection with the consideration of plementing the goals of the Alliance. make the following comment: Commodtrade policy. The Germans are as op This development should be very en ity export prices have long been a probposed to communism as anyone could be. couraging to all those who think that the lem for all countries. In fact, coming The Federal Republic of Germany has a Latin American countries are not really from the Midwest, I think I know what vigorous record of anticommunism and behind the Alliance for Progress.
behind the Alliance for Progress. They it means when raw material prices are of prodemocracy, for which we are ex- have shown by this step that they are depressed. The wheat farmers, the tremely grateful; and Chancellor Erhard ready and willing to shoulder their re dairy farmers, and all who produce food is a wise and prudent man. He under- sponsibilities for implementing the Alli- and fiber from the soil know what destands that it is better to trade than to ance and for managing the affairs of the pressed prices mean. One of the regretgive aid. He understands that trade Alliance with our help. As we know table developments in our time is that breaks down barriers of misunderstand- from our experience with the Marshall most of the thinking which today coning. He understands that through trade plan, this kind of self-help and internal trols nations is the thinking of men and it is possible not only to penetrate a management is essential if U.S. aid is women who come from the finance commarket, but also to penetrate minds. going to be effective in helping these munity or the manufacturing commuAnd he understands that through trade, countries to help themselves.
nity, rather than by those of the it is quite possible to relax tensions and Our goal is to make the Alliance more raw materials-producing community. to break away from the absolute control and more a true and working alliance, Therefore, all too often we have inadeby the Soviet Union over the economies and less and less a U.S. aid program. quate appreciation of the importance of of the satellite countries.
I am happy that the Senate con commodity prices. I believe that this New York Times cluded debate on the foreign aid bill at World markets are fickle, and the editorial, which refers to recent develop- a time when there is in the air at São prices of the goods which the primary ments in the Federal Republic of Ger- Paulo, Brazil, a victory note for the Alli- producing countries have to import have many in terms of economic policy, is ance for Progress. The Alliance for been on the rise. But in the past year, worth the attention of every Member of Progress is weathering the storms of crit- the situation for most of the Latin Amerthe Senate.
icism and dissent. The Alliance for ican countries has been improving. In Progress is a peaceful revolution in this 1962, the value of the goods exported
hemisphere of historic importance from the Latin American countries inTHE SAO PAULO CONFERENCE AND The Alliance for Progress is our only creased by 6 percent, and indications are
THE ALLIANCE FOR PROGRESS hope for constructing in this hemisphere that this trend is continuing.
Mr. HUMPHREY. Mr. President, I an orderly change for better living, for a I should add, Mr. President, that where wish to comment on the developments more progressive economy, and for po- there is a regional approach and where at the São Paulo Conference, in Brazil, litical freedom. The alternatives to the there is a common market, such as in in connection with the Alliance for Alliance for Progress are violence, dis- Central America, the rise in exports has Progress. As I said earlier today, dur- order, and chaos.
been tremendous as much as 30 percent, ing the past week newspaper and radio This is why I have tried on this floor, and the improvement in the economic commentators have been wringing their day after day, to direct attention to what position has been considerable. hands over the Alliance for Progress, and I consider the fundamentals and the Unfortunately, not all countries have there has been a good deal of what one main body of the Alliance for Progress shared in this favorable trend. The reamight call “doom and gloom.” During program.
son is that internal policies especially the week we read newspaper headline ar I recognize that funds were taken out financial policy, lack of diversification ticles about President Goulart, of Brazil, of the foreign aid authorization bill, when and other elements in the domestic ecoand the statements he made in his open- it was before the Senate, from what we nomic situation—have reduced the longing speech at the Conference. In that call the social progress trust fund; but range benefits of a few countries from speech, he pointed out that trade and I predict that the full authorization for the improving trend. commodity prices represent the major this fund will be restored in conference, Regrettably, Brazil qualifies as one of problem confronting Latin America. because in dealing with that area the those countries in which there have been Regrettably, he downgraded the Alliance House of Representatives voted for the severe internal difficulties. Inflation in for Progress.
full amount of the authorization request- Brazil is like a prairie fire sweeping the Under Secretary Harriman, represent- ed by the administration.
country. I do not raise my voice in ing the United States, and Mr. Moscoso, Mr. President, the Alliance for Prog- criticism because it is important to all in particular, representing the Alliance ress is our best bet for freedom in this the world that Brazil remain as a free for Progress, were able to carry the day, hemisphere. As the President of the country, that parliamentary institutions in cooperation with our Latin American United States properly said, what we are be preserved, and that her economy be neighbors. The proposal which the doing at the present time is putting into strengthened. I wish to do all that I United States had endorsed, and which the entire Western Hemisphere about can as a responsible public official to was advanced by this country and other the same amount of money that Russia cooperate in that endeavor. countries in this hemisphere—to “Latin- is putting into Cuba; and I cannot be Our Ambassador to Brazil, Mr. Gorize" the Alliance by establishing a co- lieve that this Nation, the richest in the don, has pointed out clearly and sucordinating committee for the Alliance, world, will do less for all of Latin Amer- cinctly and on more than one occasion has been endorsed and is wholeheartedly ica than Khrushchev is doing for the that his Brazilian friends peg all their supported by the Conference at São island of Cuba.
calculations and complaints to the highPaulo.
Therefore, I have vigorously tried to est price level their commodities have I consider this a highly important and defend the program of the Alliance for reached. singular diplomatic victory, not only for Progress. I do not do so because I be The Ambassador has carefully and the United States, but also for the na lieve it is perfect–because we know bet- courteously pointed out that that is an tions which have adopted the reforms ter than that. I do not try to defend the unrealistic approach, that it is in the agreed upon at Punta del Este and for the Alliance for Progress because I believe it nature of commodity prices to vary, to nations which have actively cooperated has produced phenomenally constructive be flexible, and to fluctuate, and that the in making the Alliance for Progress what results, because I know better than that world owes no country or producer the
difference between the highest price it is That is why self-help and reform with have financing. It will still have dediwilling to pay at one time and any drop in each of the Latin American countries cated people. in price that the same world market must be the basis of Alliance progress. As I said earlier today—and I wish my develops at some other time.
I repeat once again that the Alliance record to be crystal clear—I appreciate What we have attempted to do is to for Progress is a cooperative mutual as- the faithful service of Fowler Hamilton, stabilize commodity prices. We have sistance endeavor. It is a program for who was the previous Administrator of been doing it through some commodity which most of the resources, financial as the AID program, of Henry Labouisse, agreements, and some of those com- well as human, must come from the who is presently our Ambassador to modity agreements are being developed Latin American countries and peoples Greece, who undertook in the early days year after year.
themselves. We are a big partner, but it of the Kennedy administration the deFor many years in past decades Brazil is not a U.S. program. It is a hemi- velopment and the management of our has experienced favorable trade bal- spheric program. It is a program in foreign aid program. Those are great ances, even when commodity prices which we play a part, but a program that Americans. Those are faithful, loyal, were far below their highest levels. is not strictly a U.S. endeavor.
and excellent servants of the public weal. That shows that many factors other In summary, internal effort by the I appreciate the high quality of those than the world market for commodity Latin American countries must be the who are the assistant administrators of prices, as emphasized by President Goul essence of this Alliance. Outside aid is the AID program, and the tremendous art, or the imaginary evil machinations vital, yes, and can often provide the effort that a man like Mr. Teodoro Mosof a nonexistent capitalistic clique, cause margin of success. But it still is only coso is making.
coso is making. I must say that I have a country to have good or bad earnings a margin. This is not an aid program of never known anyone who was more from its commodity exports.
the conventional type. This is an alli- dedicated to the policies and the proEven recognizing this and many other ance-just what the word says. And grams of which he has been assigned problems, the inter-American commu- whether, as the newspapers emphasize, it supervision and management than Teonity has made considerable headway in was mentioned once or twice or not at doro Moscoso, affectionately known as key areas since the Alliance for Progress all by this or that speaker is immaterial. “Ted Moscoso.” The coordinator of the was initiated.
What is important is whether the poli- Alliance for Progress programs is giving I have mentioned before the building cies to which all 20 member nations sub- of his very life to make the program of 140,000 homes, 8,200 classrooms, hun- scribed are followed. We of the United successful. He is doing well with it. dreds of water systems, hospitals and States are willing to go a long way in I know that David Bell made a great health centers. Those instances and the carrying out these policies endorsed at sacrifice in accepting responsibility for distribution of 4 million textbooks and the Punta del Este Conference and out- the direction of foreign aid. I wish to the feeding of 9 million children are just lined in the Alliance for Progress. But make it manifestly and unequivocally a few of the concrete indicators of prog- we can and shall only help our Latin clear that he is a good administrator, ress that are too often ignored by the American partners.
that nothing revealed in the debate cast critics or derided by the cynics. Tax We cannot do it for them; nor should any reflection on his integrity, ability, and land reforms have got underway in we.
or competence. countries wherever the political leader It is they who must make the hard Most of what we talked about in the ship has shown the imagination and the decisions and carry on the bold policies foreign aid debate were the mistakes boldness that it takes to get countries it takes to move toward genuine devel- of many years past, mistakes that were with deeply encrusted habits out of the opment. For they are the masters of made in the process of developing forrut and into a new direction to progress. their own destiny and, as President Gou-eign aid. Many of the criticisms were
For example, in Brazil we have given lart says, they themselves must find their related, I might add, too, to military evidence of our interest in working with way out of their own difficulties. In that assistance. Most of the General Acthe people of that country. The United sense President Goulart's speech was counting Office reports related to misuse States has committed some $700 million most constructive and most realistic. of military weapons. to the development of that great South However, I wish to make clear that The technical assistance program, the American nation. We have cooperated the interpretation that has been placed social progress program, and the ecoin the building of schools, roads, water upon some of the comments at São Paulo nomic development program in the main, systems, and aided in the resettlement is not an interpretation which today can have been well managed and have fulof farm families and the rehousing of stand the test of careful scrutiny, be- filled their objectives. slumdwellers.
cause today the partners in the Alliance So I want the men and women who We are doing more all the time. Un have taken their part. They are sup are working for AID, and those in the fortunately, billions of cruzeiros—the lo- porting the United States in this en
porting the United States in this en- State Department, to realize that they do cal currency_in counterpart funds from deavor, and we are supporting them in have friends in Congress. I do not bePublic Law 480 shipments have not as their endeavor. We have joined in es lieve everyone deserves a pat on the yet been put to use. The reason is that tablishing now this committee of super, back on every occasion, but I, for one, we have not been able to arrive at an vision, of monitoring, of planning and do not like to see the State Department agreement with the Brazilian Govern- programing—a committee that includes that great arm of government—which ment as to the proper use of those cur representatives of the Latin American is the frontline of our defense in the rencies. We are eager to plow those re- countries as well as the United States cold war and which represents the apsources into Brazil's development pro- to better coordinate and integrate all plication of reason, intelligence, and digrams because they could be of great ad- the policies of the Alliance for all of the plomacy to the problems of the day vantage to large numbers of people who countries that participate in the Alliance downgraded or demeaned in any way. deserve assistance and whom we want to for Progress.
America is fortunate to have men like help.
I am encouraged. I am encouraged Dean Rusk, and Averell Harriman, and Reports on Mr. Goulart's speech indi- despite the many days of debate in the George Ball, and David Bell, just to cated that he himself recognizes the lack Senate over the foreign aid bill, a de- mention a few. When someone attacks of movement toward development goals bate which has often been interpreted the State Department, he is attackwithin Latin America. He said:
and I gather properly so as being most ing these men, because they run the Reality can no longer tolerate that Latin critical of the foreign aid program. State Department. When someone atAmerica remain an archipelago of nations, Some people have interpreted it as liter- tacks the State Department and the implacably separated by the sea of frustra ally crippling the foreign aid program. Foreign Service, he attacks its intions of our own difficulties.
I wish to make quite clear that I do dividuals. To that statement I am sure all of us not believe we have crippled the foreign I said last week that the Foreign Serywould express agreement.
aid program. I think we have placed ice represents our peacetime soldiers on That is why it is a policy to which all some unwise restrictions upon those who the diplomatic, political, and economic Alliance members subscribed in Punta are responsible for the administration front. The Foreign Service is capable, del Este; namely, to promote the eco of the program, but the program will still able, disciplined, and trained. Our AID nomic integration of Latin America. have plenty of momentum. It will still people are making sacrifices far beyond
those of many civilians. Our Foreign work down the line and carry out the from Monday next. It is expected that Service and AID personnel do not de- daily tasks of economic aid and tech the committee report will be available serve to be whiplashed, to be criticized nical assistance throughout the world. to the Senate by November 25, and en bloc, to be demeaned by words that Mr. President, I ask unanimous con that we will debate whatever the action indicate they are unworthy of their trust. sent to have printed in the RECORD a of the committee may be, on the 25th or
So I believe, as we pass the foreign table, "Summary of Selected Indicators the 26th, and hold a reasonably short, aid program and give it a big vote of of Physical Accomplishments.”
but we hope full, discussion upon the confidence, that a vote of confidence There being no objection, the table substance of the recommendations of should also be extended to those who was ordered to be printed in the RECORD, the committee. administer the program, to those who as follows:
Mr. MCGOVERN. Mr. President, will
the Senator yield? AGENCY FOR INTERNATIONAL DEVELOPMENT AND SOCIAL PROGRESS TRUST FUND Mr. HUMPHREY. I yield. Summary of selected indicators of physical accomplishments (July 1, 1961-July 1, 1963), tor believe that if a move of this kind
Mr. MCGOVERN. Does not the Senaestimated
were made and approved by the Senate,
it would have the effect of undercutting
Number of the entire negotiations now underway
Number of Number of Commu Hospitals people fed
for the sale of wheat to Eastern Europe
and under Public
Mr. HUMPHREY. I do. It is my view and III
that this kind of precipitate action could Argentina -3,000
jeopardize the entire wheat sales proBolivia..
368, 200 gram, and might very well do so yet. Brazil..
1,730 2, 250
3, 433, 000 Chile..
Let me make it clear that I am not for 1, 220 26,500
the amendment in any way, shape, or 86
3, 241, 000 Costa Rica.
form. I believe it is unwise and unDominican Republic.
481, 000 Ecuador.
890,000 El Salvador650 1,500 665, 050 5,180
153,000 Incidentally, the Export-Import Bank Guatemala. 1, 430 2, 750 56,000 2, 312
464, 000 Haiti...
was established in 1934. It was estab350
158,000 Honduras 250 2,500 455,000
123, 000 lished with the prime purpose in mind, Mexico...
2, 547, 000 at that time, to finance certain sales of Nicaragua.
goods to the Soviet Union. Paraguay
254, 000 The amendment which was offered Peru.
last night by the senior Senator from Uruguay
South Dakota (Mr. MUNDT] was primarVenezuela
ily directed toward the guarantee by the
31,000 Export-Import Bank of certain credits Total (rounded)----- 8, 200
made by private American banks to pri-
vate American exporters who would be
doing business with the Soviet Union. Mr. MCGOVERN. Mr. President, will
Mr. President, will get "kicked around" at home, but also I should like to make it clear once the Senator yield?
they get "kicked around" in the Senate more that there is no business now. Mr. HUMPHREY. I am glad to yield. not by the Senator from South Dakota The Soviet Union has agreed to nothing.
Mr. McGOVERN. I should like to as or by myself, nor, I add, the Senator Frankly, I am doubtful there will be an sociate myself with the remarks of the from Hawaii (Mr. INOUYE), whom I see agreement because we insist on making Senator from Minnesota relative to the in the Chamber, nor the Senator from this business deal as difficult as possible. personnel who are directing our AID pro- New Jersey (Mr. CASE], nor the Senator We are a nation of businessmen that gram and those who have responsibility from Indiana [Mr. BAYH].
does not want to do business. in the State Department.
The situation is as follows: Today the I can imagine a car salesman in this I wonder if the Senator from Minne- senior Senator from South Dakota [Mr. situation.
situation. He would refuse to meet the sota would turn his attention for a mo- MUNDT] withdrew his amendment to the customer. Then, when he did meet him, ment to another matter.
foreign aid bill, and introduced as a bill he would insult him. Then he would As the Senator knows, I was absent the substance of that amendment, as tell him he could not have time payfrom the Senate late last night on offi- amended—to include not just grain, but ments on the purchase of a car. Then cial business, speaking to a national also manufactured, processed, raw mate- he would tell him that his credit is no agricultural meeting in Fargo, N. Dak., rials, and industrial products. The sub- good. Finally, he would tell him he which for a long period of time I had stance of the amendment, in the form wished he had not come into the salesbeen slated to address. This afternoon of a bill, was referred to the Senate Com room in the first place. If the autoI was also slated to speak to a conven- mittee on Banking and Currency. mobile industry had to depend upon that tion of wheat growers in Nebraska. I
The Senator may recall I said last kind of salesmanship, we still would be canceled that commitment in order to night that what was being suggested by riding around in oxcarts or on horsemake a special flight back to Washing- the senior Senator from South Dakota back. ton, because I had understood that the [Mr. MUNDT] was a major policy deci Mr. MCGOVERN. I cannot imagine amendment of my senior colleague [Mr. sion, and that we should not vote on it any move we could make that would be MUNDT] would be pending this after- quickly or immediately, that it should go more of a cruel blow to American agrinoon.
to an appropriate committee. I men culture than to take steps to close the Can the Senator from Minnesota ad tioned that it should go to the Banking possibility of making these sales. Every vise me as to the disposition of that and Currency Committee.
other exporting country in the world is amendment?
I am happy to say, after hours of dis- taking advantage of the opportunity to Mr. HUMPHREY. I express my grati- cussion, since early this morning—and broaden its exports. If we back out of tude to the junior Senator from South some of us have been working on this the negotiations or impose conditions Dakota [Mr. MCGOVERN] for returning since 8:30 this morning—we were able that are so unreasonable that the negoto the Senate tocay. We knew he had a to work out an understanding whereby tiations fall through, we are not hurting long-standing commitment and that it the senior Senator from South Dakota anyone but our own farmers and our was an important commitment.
[Mr. MUNDT] withdrew his amendment own exporters. The Senator is a member of the Com- from the foreign aid bill and presented it Mr. HUMPHREY. The Senator is mittee on Agriculture and Forestry, and in the form of a new bill, which was correct. To show the Senator how riif any one group in this country needs read and referred to the Committee on diculous the situation is, our friends in a little encouragement these days it is Banking and Currency. That commit- Canada—and they are our friends, and the farmers of America. They not only tee will report not later than a week I do not want my remarks to be inter
preted as being critical at all; they are Russians. They lecture us while they occasions I noticed that Chancellor Adeour friends and neighbors-sold feed do business. Then we proceed to act nauer told the United States we should grains to Poland. They sold those feed
They sold those feed politically, with the fear of certain polit- not sell one bushel of wheat to the Soviet grains by financing them through banks ical consequences because of a misunder Union until she tears down the wall. He in New York, with American money. standing and misinformation about trade laid down other suggestions over a period The reason they were able to finance with the Soviet and satellite countries, of months. When we sold wheat to Gerthem through banks in New York was and we literally cut off our nose to spite many, they turned it into flour and sold that Canada has an export credit guar our face. That is what we are doing in it to Russia. They did not ask for our antee program. Any nation that does this country. Many businesses have been consideration—it was just a good, solid any business of any consequence has an moving out of the United States to business deal. export credit guarantee program.
The Europe. American capital is leaving the Mr. HUMPHREY. And the wall is in British, for example, sell large amounts United States and going to Europe.
Europe. Germany. It is not in Minnesota or of machinery to the Soviet Union and American companies are establishing South Dakota. One would think he was satellite countries. They sell it under subsidiaries there and doing business as interested in trying to tear down the an export credit guarantee program. A
with countries behind the Iron Curtain wall when they sold the flour as when good deal of the machinery is financed Every Senator knows I am speaking the we are getting ready to sell Russia wheat. here in the United States, with money
truth. What we are doing is acting hypo Mr. McGOVERN. It seems to me that out of our financial institutions, but the critically. We are pretending these what our competitors are saying is that machinery is manufactured in Great things do not happen.
things do not happen. There is not a the American farmers must be kept out Britain, providing jobs for workers in
single American business which has a of their market and leave it as the mothat country and profits for its industry. subsidiary in Western Europe that can
subsidiary in Western Europe that can nopoly of other countries. I would hope, Why do the banks finance it? Because
not do business with Bulgaria or Poland instead of the Senate making it harder the British have an export credit guar
or Czechoslovakia or Rumania or the and tougher for the American exporter to antee program.
Soviet Union. They do not give away compete, it would move in the other diThe Export-Import Bank has an ex
their goods; they sell them and get rection. I would like to see some serious port credit guarantee program for Amer
money for them—good, hard cash. Of consideration given to relaxing some of ican industry. We are in a situation now course, credits are involved, but they are our credit restrictions. I talked with in which, if any country in the world good commercial credits.
some businessmen, some from the State wants to sell to the Soviet Union, it can
As the acting head of the Export-Im- of the Senator from Minnesota, some do so. The financing can be obtained port Bank told us this morning, as well
port Bank told us this morning, as well from my own State, and some from other in other countries of the world. Much of as the representative of the Treasury parts of the Midwest, the other day, who it will come from the United States. All Department, there has not been known were anxious to get more lenient terms that is necessary for a country to make
to be one default by the Soviet Union on of credit furnished to them which would a sale is to have an export guarantee commercial credits and sales—not one.
commercial credits and sales—not one. make it possible for them to open up a program that satisfies a bank in the
Mr. MCGOVERN. If the Senator will mill in Costa Rica. I think that kind of United States. But when it comes to But when it comes to yield further, does not the Senator think
yield further, does not the Senator think arrangement is in the national interest, selling anything from our own factories, it is rather strange reasoning that leads
so that at a time when we know American from our own farms, financing it out of
some people to believe that a Commu- agriculture is in trouble, when we have our own banks with an export guarantee nist who is hungry is a more peaceful serious balance-of-payments problems, program, we say, "No,” according to the individual than one who has enough to
individual than one who has enough to when we know our exporters are faced proposal of last evening by the senior eat?
with tough competition, far from moving Senator from South Dakota [Mr.
Mr. HUMPHREY. It is peculiar and in the direction suggested by the senior MUNDT).
twisted reasoning to me. It also is pe- Senator from South Dakota, we should That is why some of us felt the ques
culiar and twisted reasoning to think be moving in the opposite direction. tion should be referred to committee, that if we sold soft, perishable goods for I certainly hope the Senate will treat that we ought to take a good look at it hard currency, we are really strengthen
hard currency, we are really strengthen the proposal accordingly. that a basic policy decision is being made. ing the Soviet Union. The Soviet Union
Mr. HUMPHREY. Mr. President, I The question before the world is requires money, just as any other coun thank the Senator. I can think of whether cutting off sales to Russia and try does. Whether a country is Com
Whether a country is Com- nothing which would be more helpful the satellite countries will break down munist, Socialist, or capitalist, it takes
munist, Socialist, or capitalist, it takes than to have 10,000 businessmen behind the system in the Soviet Union. We have so much money. There is only so much the Iron Curtain, to do business. First been trying to do that for 30 years, and money to use and spend, because money of all, they will show an example of an it has not worked. Russia today is the
is the measure of production. If she American democracy. That is what they second largest power in the world.
spent $1 billion for food which was to will bring with them. They also will The other possibility is that through be consumed by her people, it would be
be consumed by her people, it would be bring with them a tough mind, which is trade we may be able to ease some of
$1 billion less she would have to spend unafraid of communism or the bureauthe tensions in the world. This is what on sputniks or missiles or bombs or atom crats they will meet there. Chancellor Erhard said in Germany. I bombs. I wish we could sell them $10 Instead of that, we permit other referred to his recent efforts. He is the billion worth of food, because then I
billion worth of food, because then I countries to take on this entire opporChancellor of the Federal Republic of would know she would not be able to keep
would know she would not be able to keep tunity and responsibility. It is incrediGermany. He says that by trade we ease up her arms race. If the people are de ble to me that we are so blind. I am tensions; by trade we not only penetrate nied food, it does not make them more not critical of the Europeans for doing a market, we penetrate minds. By trade peaceful; it makes them more angry, what they are doing and for saying what we may very well prevent a war and im more warlike and aggressive, and they they are saying, because they know if prove conditions of the free nations of have more money left over to make weap
have more money left over to make weap- they will just throw out a little more the world.
ons. They know how to make weapons. emotion, we will not see anything but The Germans have as big a stake in They do not know how to produce corn hatred of communism. While we are what the Russians are going to do as we or wheat, but they know how to produce seeing that, they are out doing construchave. The difference is that we have all bombs. I wish we would engage in a tive things in the economic sector. the emotions, and they have all the busi race, not to see who can build the biggest Therefore, when the former Chancellor, ness. We have the cost of defense, and bomb, but, rather, who can produce the Chancellor Adenauer, to whom we owe a they have the orders. And why? Be most food. We compete with them in an great deal as Chancellor, made the comcause the Congress of the United States area where they have a chance of win ments he made recently, I am sure he insists on acting this way. Whenever ning. I think we ought to compete with knew that this would fan the flames of the President or the Commerce Depart them in areas where they have no chance emotion in America, and in the meanment want to do something that ap of winning; namely, food for peace. time the new Chancellor could make all proaches reasonable, normal business Mr. McGOVERN. I think the sugges kinds of arrangements and business operations, somebody in Congress says tion made about the free advice we are deals. we are soft on communism.
getting from some Western European If we want to be that stupid, we should We have had many lectures from our countries not to trade with the Soviet not complain about the Europeans who friends in Europe about how we help the Union is a good point. On two different have a little more "savvy."