the bill and copies of editorials from Wisconsin newspapers endorsing this splendid project.

The PRESIDING OFFICER. The bill will be received and appropriately referred; and, without objection, the bill and editorials will be printed in the RECORD.

The bill (S. 2498) to provide for the establishment of the Apostle Islands National Lakeshore in the State of Wisconsin, and for other purposes, introduced by Mr. NELSON (for himself and other Senators), was received, read twice by its title, referred to the Committee on Interior and Insular Affairs, and ordered to be printed in the RECORD, as follows:

S. 2498

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That

(a) (1) for the purpose of conserving and developing for the benefit, inspiration, and use of the public certain islands, shorelines, beaches, sandspits, and other natural and historical features within Ashland and Bayfield Counties, Wisconsin, which make up a significant portion of the diminishing shoreline and archipelago environments of the Great Lakes region and which possess high values to the Nation as examples of unspoiled areas of great natural beauty; and

(2) for the purpose of encouraging and enhancing the development and utilization of this region as an important center of public recreation activities, and particularly to encourage participation in the accomplishment of such purposes by the Bad River Band and the Red Cliff Band of the Lake Superior Chippewa Indians of Wisconsin (hereinafter referred to as the "Bad River Band" and the "Red Cliff Band"), there is hereby established the Apostle Islands National Lakeshore (hereinafter referred to as the "lakeshore").

(b) The lakeshore shall comprise those islands, waters, and portions of mainland within Ashland and Bayfield Counties, Wisconsin, as generally depicted on a map identified as "Boundary Map Proposed Apostle Islands National Lakeshore, NL-A1-7100, sheets 1, 2, and 3," dated May 1965. Said map shall be on file and available for public inspection in the offices of the Department of

the Interior.

SEC. 2. (a) Within the boundaries of the lakeshore, the Secretary of the Interior (hereinafter referred to as the "Secretary") is authorized to acquire lands, or any interest

therein, by donation, purchase with donated or appropriated funds, or exchange. Any property or interests therein owned by the State of Wisconsin, or any political subdivision thereof, may be acquired only with the concurrence of such owner. Notwithstanding any other provision of law, any Federal property located within the boundaries of the lakeshore may, with the concurrence of the agency having custody thereof, be transferred without consideration to the administrative jurisdiction of the Secretary for the purposes of the lakeshore.

(b) In exercising his authority to acquire property within the boundaries of the lakeshore by exchange, the Secretary may accept title to any non-Federal property therein, and in exchange therefor he may convey to the grantor of such property any federally owned property under his jurisdiction which he classifies as suitable for exchange or other disposal and which is of approximately equal value. If the properties are not of approximately equal value, the Secretary may accept cash from, or pay cash to, the grantor in order to equalize the values of the properties exchanged.

SEC. 3. (a) With the exception of not more than 80 acres of land in the Red Cliff Creek

area that the Secretary determines are necessary for an administrative site, visitor center, and related facilities, any owner or owners, including beneficial owners (hereinafter in this section referred to as "owner") of improved property on the date of its acquisition by the Secretary may, as a condition of such, retain for themselves and their successors or assigns a right of use and occupancy of the improved property for noncommercial residential purposes for a definite term not of, for a term ending at the death of the to exceed twenty-five years, or, in lieu there

owner, or the death of his spouse, or the death of either of them. The owner shall elect the term to be reserved. The Secretary shall pay to the owner the fair market value of the property on the date of such acquisition less the fair market value on such date of the right retained by the owner.

(b) A right of use and occupancy retained pursuant to this section shall be subject to termination by the Secretary upon his determination that such use and occupancy is being exercised in a manner not consistent with the purposes of this Act, and upon tender to the holder of the right an amount equal to the fair market value of that portion of the right which remains unexpired on the date of termination.

(c) The term "improved property", as used in this section, shall mean a detached, noncommercial residential dwelling, the construction of which was begun before January 1, 1965 (hereinafter referred to as "dwelling"), together with so much of the land on which the dwelling is situated, the said land being in the same ownership as the dwelling, as the Secretary shall designate to be reasonably necessary for the enjoyment of the dwelling for the sole purpose of noncommercial residential use, together with any structures accessory to the dwelling which are situated on the land so desig

nated.

SEC. 4. The authorities granted by this Act shall be subject to the following exceptions and qualifications:

(a) Lands or interests therein within the boundaries of the lakeshore that are held by

the United States in trust for the Bad River Band or the Red Cliff Band may be acquired by the Secretary only with the concurrence of the beneficial owner;

the boundaries of the lakeshore and within the boundaries of the Bad River or Red Cliff Indian Reservations, the Secretary may sell

such lands to the respective Indian band at fair market value if he finds the sale will

consolidate the Indian holdings and will facilitate the administration of the lakeshore: Provided, That as a condition of the sale the Secretary may acquire from the vendee a leasehold interest in order to use

the land as part of the lakeshore; and

by negotiated purchase any land within the (f) In exercising his authority to acquire boundaries of the lakeshore that is held in trust or in a restricted status for individual

Indians, the Secretary may, in cases where a particular tract of land is so held for more than one Indian, acquire such land without the consent of all of the beneficial owners if the acquisition is agreed to by the owners of not less than a 50 per centum interest in any land where ten or fewer persons own undivided interests or by the owners of not less than a 25 per centum interest in any land where eleven or more persons own undivided interests. The Secretary may represent for the purpose of this subsection any Indian owner who is a minor or who is non compos mentis, and, after giving such notice of the proposed acquisition as he deems sufficient to inform interested parties, the Secretary may represent any Indian owner who cannot be located, and he may execute any title documents necessary to convey a marketable and recordable title to the land.

SEC. 5. Within the portions of the Bad River and Red Cliff Indian Reservations that are included in the lakeshore, recognized members of the Bad River and Red Cliff Bands shall be

(a) permitted to traverse such areas in order to hunt, fish, boat, or gather wild rice or to obtain access to their homes or businesses: Provided, That in order to preserve and interpret the historic, scenic, cultural and other outdoor features and attractions

within the lakeshore the Secretary may prescribe regulations under which the area can be traversed;

purchase any timber if the Secretary deter(b) granted the first right of refusal to mines that the harvesting or removal of timber is necessary or desirable;

(c) In order to facilitate the acquisition by exchange of the lands within the boundaries of the lakeshore that are held by the United States in trust for the Bad River Band or the Red Cliff Band or held in trust or in a restricted status for individual Indians of said bands, the Secretary may acquire by negotiated purchase any lands, or interests therein, outside of the lakeshore boundaries. Lands so acquired may be exchanged for such Indian lands on an approximately equal-value basis, but if the properties are not of approximately equal value the Secretary may accept cash from, or pay cash to, the grantor in order to equalize values;

(d) In order to provide substitute lands for the Bad River Band and the Red Cliff Band or for individual Indians of said bands in cases where their lands are acquired for the lakeshore, the Secretary may, from funds made available to him by such band of Indians, acquire by negotiated purchase any lands or interests therein outside of the boundaries of the lakeshore: Provided, That title to such lands shall be held by the United States in trust for the band or the individual Indians involved;

(e) With respect to any lands acquired by the Secretary under this Act that are within

desirable: Provided, That such a preferential privilege will not be granted unless the visitor accommodations and services meet

such standards as the Secretary may prescribe;

(d) granted employment preference for construction or maintenance work or for other work in connection with the lakeshore for which they are qualified; and

(e) encouraged to produce and sell handicraft objects under the supervision of the Secretary.

SEC. 6. The Secretary shall, to the extent that appropriated funds and personnel are available, provide consultative or advisory assistance to the Bad River and Red Cliff Bands with respect to planning facilities or developments upon their tribal lands which are outside of the boundaries of the lakeshore.

SEC. 7. Subject to such regulations as the Secretary may prescribe, the recognized members of the Bad River and Red Cliff Bands may use without charge any docking facilities within the lakeshore that are operated by the Secretary.

SEC. 8. (a) The Secretary shall permit hunting, fishing, and trapping on lands and waters under his jurisdiction within the boundaries of the lakeshore in accordance with the appropriate laws of Wisconsin to the extent applicable, except that he may designate zones where, and establish periods

when, no hunting or fishing shall be permitted for reasons of public safety, administration, fish or wildlife management, or public use and enjoyment. Except in emergencies, any regulations prescribing any such restrictions shall be put into effect only after consultation with the appropriate State agency responsible for hunting and fishing activities.

(b) Except for such regulations as the Secretary may issue under authority of this Act, nothing in this Act shall affect the existing rights of members of the Bad River Band or Red Cliff Band to hunt, fish, trap, or to gather wild rice.

SEC. 9. The lakeshore shall be administered, protected, and developed in accordance with the provisions of the Act of August 25, 1916 (39 Stat. 535; 16 U.S.C. 1 et seq.), as amended and supplemented; except that any other statutory authority available to the Secretary for the conservation and management of natural resources may be utilized to the extent he finds such authority will further the purposes of this

Act.

SEC. 10. (a) In the administration, protection, and development of the lakeshore, the Secretary shall adopt and implement, and may from time to time revise, a land and water use management plan which shall include specific provision for:

(1) Protection of scenic, scientific, historic, geological and archeological features contributing to public education, inspiration, and enjoyment;

(2) Development of facilities to provide

the benefits of public recreation and a scenic shoreline drive on the Bayfield Peninsula;

(3) Preservation of the unique flora and fauna and the physiographic and geologic conditions now prevailing on the Apostle Islands within the lakeshore: Provided, That the Secretary may provide for the public enjoyment and understanding of the unique natural, historic, scientific and archeological features of the Apostle Islands through the establishment of such trails, observation points, exhibits, services as he may deem desirable; and

(4) Preservation and enhancement of the unique characteristics of the Kakagon River and Bad River Sloughs.

(b) With respect to the portion of the lakeshore located within the boundaries of the Bad River Indian Reservation such land and water use management plan shall provide for

(1) public enjoyment and understanding of the unique, natural, historic and scientific features through the establishment of such roads, trails, observation points, exhibits, and services as the Secretary may deem desirable; and

(2) public use and enjoyment areas that the Secretary considers especially adaptable for viewing wildlife: Provided, That no development or plan for the convenience of visitors shall be undertaken in such portion of the lakeshore if it would be incompatible with the preservation of the unique flora and fauna or the present physiographic

conditions.

SEC. 11. There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of this Act.

The editorials presented by Senator NELSON are as follows: [From the Ashland (Wis.) Daily Press, Aug. 30, 1965]

HIT AND MISS ABOUT TOWN

(By Norrie Swanson)

The publicity given the proposed national park area for the Apostle Islands was tremendous all over the United States. The Milwaukee Journal, one of the Nation's best publications, gave it as much space as it would have the same proposal been for the Milwaukee area.

If this thing goes through, and it looks like there is nothing to stop it, it'll be a feather in the hat for U.S. Senator GAYLORD NELSON, who was Wisconsin's Governor when he first fostered this program that will certainly be a boost to the economy of the Ashland-Bayfield County region. There were some objectors Saturday when the proposal was explained, but those seemed to be more from a selfish standpoint and from those who were not fully aware of the plan.

Fishing and hunting rights will not be denied to any degree that it would hurt anyone, so I for one sincerely hope the plan will meet favorable response in Congress, where Senator NELSON now has to bring the measure. The complete survey has been completed and there is no denying from the facts and figures presented by the experts of the benefits that will be derived for the north.

Senator NELSON plans to present the measure to Congress within a week or so. No doubt it will take until 1966 when action will be taken. It requires an act of Congress to establish the proposed park. Let's keep plugging it and I'm sure we'll reap some sort of benefit by having a national park in our backyard.

[From the Portage Daily Register, Aug. 30, 1965]

GREAT OPPORTUNITY

There is a unique opportunity in Wisconsin and the large part of credit for it goes to Senator GAYLORD NELSON.

Ever since he was Governor, NELSON has

promoted the idea of an Apostle Island Na

tional Park. Now it is official. Senator NELSON has proposed a 57,500 acre project that would include 30 miles of Bayfield County shoreline with 20 wild offshore islands and 10,000 acres of wild rice marsh interlaced by two rivers.

What possible relevance would this project have for Portage? Such a question is justified and though the answer seems clouded by the hundreds of miles between the Apostle Islands and our city and county, there is a very valid rational for the Nelson project.

The national park, as outlined by Senator NELSON, would cost $11 million. It would require buying a very small percentage of privately owned lands. It would take from the county tax rolls in the north some $6,000 in taxable property. This is a small amount however, when we compare it to the projected $7,250,000 that economic studies estimate the national park would generate in spending within the area in 1 year.

The park would require an estimated 21 full-time employees and 50 part-time employees with an annual payroll of $350,000, not including the privately operated concessions in the park nor the many private lodgings outside the park area that would serve to house those people coming to the Apostle Islands.

Further, when it is fully developed, according to NELSON and studies made by the Department of Interior, the park would attract 920,000 visits per year. These people would have to pass through Wisconsin, and, more important, some of them would pass through Portage and Columbia County. We would then in a very materialistic and emperical sense derive direct benefit from the money that these many additional tourists would spend.

As important as the economic factors, however, there is the overriding consideration of conservation. The Apostle Islands

a unique natural phenomena. Their beauty is certainly unmatched anywhere, and, as the Department of Interior said in a field study report, "There is no comparable area on the Great Lakes."

The proposed park would tie together the conservation and recreational purposes of the Apostle Islands and the shore line opposite them. It would preserve, as Senator

NELSON indicated, a "rare and priceless resource."

Neither the State of Wisconsin nor the counties involved can supply adequate funds, personnel, or knowledge to preserve and maintain the Apostle Islands area as could be provided through the efforts of the Federal Government. When we have the opportunity for a Yellowstone or Glacier type national park, when we have the area that warrants such attention, then we have no alternative but to wholeheartedly support Senator NELSON and his proposal for this most worthwhile project.

[From the Wisconsin State Journal, Sept. 1, 1965]

NELSON PROPOSAL MERITS SUPPORT-APOSTLE ISLAND RECREATION PLAN Senator GAYLORD NELSON may have been just a bit immodest, but he was also accurate in calling his Apostle Island National Lakeshore proposal "the greatest recreational project ever proposed for Wisconsin."

Bayfield County shoreline, 21 wild offshore The visionary proposal covers 30 miles of

islands, and a 10,000-acre wild rice marsh interlaced by two rivers.

Anyone who has visited the area-and this must mean the great majority of State residents could not fail to be impressed and charmed by its character.

It has a wild beauty that is found nowhere else in the State. It has a rocky and fascinating history of Indian wars, early exploration, fur harvest, and occupation by a rugged people who stayed to develop a fish and lum

ber economy.

It is a land and a water area that the State must be proud to list as one of its top assets. State residents owe it to their grandchildren to see that it remains a top asset and is not ground to pieces under the ruthless heels of civilization. It must be preserved as a land of beauty and solitude that is so necessary if man is to refrain from jumping off the edge of the earth in screaming panic.

The Nelson proposal seems the best way to do it. It deserves and needs the support of every State citizen.

[From the Eau Claire (Wis.) Daily Telegram,

Aug. 30, 1965]

APOSTLE ISLANDS AS NATIONAL PARK Senator GAYLORD NELSON has undertaken a difficult project in seeking to have the Apostle Islands and adjacent areas made a

national recreation area.

The park would include 21 of the 22 Apostle Islands under a plan worked out during the past 2 years with the assistance of the Interior Department which sent a task force to study the terrain.

The rugged, rock-ribbed south shore caught the fancy of the late President Kennedy who visited the area on one of his last trips to the State.

Many others see a great potential in recreational use of the area ranging from primitive wilderness zones on the islands to sections such as one proposed for the Bayfield Peninsula providing space for tents, trailers, marinas, swimming, fishing, hiking, and beachcombing.

University of Wisconsin economist I. V. Fine in a study of the proposed area estimates it will attract up to one million visitors a year when fully developed and generate around $7 million a year in consumer spending.

It is our belief the estimate is on the conservative side. A friendly ranger in Grand Teton National Park, Wyo., told us that around 21⁄2 million visitors are using that park this summer. While the Apostle Islands area would require many years to become as well known as the Tetons, their accessibility to millions of midwestern citizens is much more immediate.

The area is 168 miles from Eau Claire; 42 from Milwaukee; and a nice day's drive on the interstate from Chicago at 432 miles when the 4-lane freeways are completed.

Of the total of approximately 57,500 acres in the project along the lakeshore, 37.2 percent is publicly owned. About 19 percent is About 19 percent is owned by Indians and the rest is privately owned. The latter property is generally either in seasonal cottages or hunting camps. Commercial enterprises are limited in number and size. There are 14 year-round residences.

Professor Fine is careful to note that the tax revenue lost to local governments if the project goes through on the basis of 1963 data would total less than $10,000. This figure would probably be lower because local units of government can continue to tax owners of property under the lease-purchase agreements commonly employed. Owners have use of the property for another 25 years. He also notes that the increase in business and local employment is almost certain to offset tax losses.

It is doubtful if dollar-sign benefits were

uppermost in the mind of President Teddy Roosevelt when he helped launch the national park system. This Nation can be proud of the beauty spots which were wisely set aside by earlier generations.

Senator NELSON's effort to preserve for posterity some of the majesty of the glacierbattered Laurentian Range; the wave-lashed Apostle Islands; and the rocky southern shore of Lake Superior will need broad support from Wisconsin residents if it is to become a reality.

[From the Chippewa Herald-Telegram,
August 30, 1965]

A UNIQUE OPPORTUNITY
There is a unique opportunity in Wiscon-
sin and the large part of credit for it goes to
Senator GAYLORD NELSON.

Ever since he was Governor, Senator NEL

As important as the economic factors however there is the overriding consideration of conservation. The Herald-Telegram is most familiar with the Apostle Islands. They are a unique natural phenomena. Their beauty is certainly unmatched anywhere and as the Department of Interior said, in a field study report, "there is no comparable area on the Great Lakes."

The proposed park would tie together the conservation and recreational purposes of the Apostle Islands and the shoreline opposite them. It would preserve, as Senator NELSON indicated, a "rare and priceless resource."

Neither the State of Wisconsin nor the counties involved can supply adequate funds, personnel or knowledge to preserve and maintain the Apostle Islands area as could be provided through the efforts of the Federal Government. When we have the opportunity for a Yellowstone or a Glacier type national park, when we have the area that warrants such attention then we have no alternative but to wholeheartedly support Senworthwhile project. ator NELSON and his proposal for this most

SBA SALE OF LOANS

Mr. PROXMIRE. Mr. President, I introduce, for appropriate reference, a bill, and ask unanimous consent that it be printed at this point in the RECORD.

The PRESIDING OFFICER. The bill will be received and appropriately referred; and, without objection, the bill will be printed in the RECORD.

The bill (S. 2499) to amend the Small Business Act to authorize issuance and sale of participation interests based on certain pools of loans held by the Small Business Administration, and for other

meaning of the laws administered by the Securities and Exchange Commission and of section 5136 of the Revised Statutes;

"(11) notwithstanding any other provision of law, set aside a part or all of obligations held by him and subject them to a trust and, incident thereto, guarantee payment thereof. The trust instrument may provide for the issuance and sale of beneficial interests or participations, by the Trustee, in such obligations or in the right to receive interest and principal collections therefrom; and may provide for the substitution or withdrawal of such obligations, or for the substitution of cash for obligations, but the amount, interest rates, and maturities of such obligations shall at all times be sufficient to assure all payments under the participations. The trust instrument may also contain other appropriate provisions in keeping with the purposes of this paragraph. Notwithstanding any other provision of law, the Federal National Mortgage Association may be named and may act as trustee of any such trusts and, for the purposes thereof, the title to such obligations shall be deemed to have passed in trust: Provided, That the trust instrument shall provide that custody, control, and administration of the obligations shall remain in the Administrator subject to defeasance in the event of default or probable default, as determined by the Trustee, in the payment of the beneficial interests or participations. Notwithstanding

the provisions of section 4 (c) hereof relating to the payment of collections into the revolving fund established by such section, trust shall be dealt with as provided by the collections from obligations subject to the instrument creating the trust. The trust instrument shall provide that the Trustee will promptly pay to the Administrator the entire proceeds of any sale of beneficial interests or participations to the extent they are based upon such obligations or collections. The Administrator shall deposit such

Island National Park. Now it is official as

Senator NELSON has proposed a 57,500-acre project that would include 30 miles of Bayfield County shoreline with 20 wild offshore islands and 10,000 acres of wild rice marsh interlaced by two rivers.

What possible relevance would this project have for Chippewa Falls? Such a question is justified and though the answer seems clouded by the hundreds of miles between the Apostle Islands and our city and county, there is a very valid rational for the Nelson project.

The national park, as outlined by Senator NELSON, would cost $11 million. It would require buying a very small percentage of privately owned lands. It would take from the county tax rolls in the north some $6,000 in taxable property. This is an infinitely small amount, however, when we compare it to the projected $7,250,000 that economic studies estimate the national park would generate in spending within the area in 1 year.

The park would require an estimated 21 full-time employees and 50 part-time employees with an annual payroll of $350,000 not including the privately operated concessions in the park for the many private lodgings outside the park area that would serve

was received, read twice by its title, referred to the Committee on Banking and Currency, and ordered to be printed in the RECORD, as follows:

S. 2499

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 5(b) of the Small Business Act is amended by deleting the word "and" before paragraph (9) thereof, and by adding the following new paragraphs:

"(10) notwithstanding any other provision of law, issue, offer, sell, guarantee, and purchase participation certificates evidencing a beneficial interest in principal and interest collections to be received by the Administration on obligations comprising loan pools established by it. Collection receipts allocable to the participations shall be set aside as a separate part of the revolving fund established by section 4 (c) of this Act, and payments required on account of such certificates are authorized to be made from the revolving fund. Substitution or withdrawal of obligations in such pools may be made, but the amount, interest rates, and maturities of such obligations shall at all times be sufficient to assure all payments under the par

tle Islands.

Further, when it is fully developed, according to Senator NELSON and studies made by the Department of Interior, the park would attract 920,000 visits per year. These people would have to pass through Wisconsin, and, more important some of them would pass through Chippewa Falls and Chippewa County. We would then in a very materialistic and empirical sense derive direct benefit from the money that these many additional tourists would spend.

ticipations shall be deposited in the revolving fund. Participations issued and guaranteed by the Administration shall be lawful investments, and may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority and control of the United States or any officer or officers thereof. Such participations shall also apply to the same extent as securities issued or guaranteed by the United States or its instrumentalities be deemed to be exempt securities within the

istrator is authorized to purchase outstanding beneficial interests or participations to the extent of the outstanding amount of his commitment to the Trustee. In the event that collections from obligations subject to the trust are insufficient to enable the Administrator to meet any of his responsibilities with respect to such beneficial interests or participations the Administrator may utilize any amounts available in the revolving fund to meet such responsibilities. There are hereby authorized to be appropriated to the revolving fund any amounts not otherwise available therein as may be required to enable the Administrator to meet any of his responsibilities with respect to beneficial interests or participation based on obligations set aside by the Administrator pursuant to this subsection."

SEC. 2. The first and last sentences of section 302(c) of the Federal National Mortgage Association Charter Act are amended by inserting "and other obligations" following "mortgages".

Mr. PROXMIRE. Mr. President, the bill would amend the Small Business Act and the Federal National Mortgage Association Charter Act to authorize issuance and sale of participation interests based on certain pools of loans held by the Small Business Administration. Proceeds from sale of the participations would be deposited in SBA's revolving fund for use in financing the agency's programs of small business loans, disaster loans, loans under the Economic Opportunity Act of 1964, development company loans, and loans to and debenture purchases from small business investment companies.

Though section 5(b) of the act confers broad authority on the Administrator of SBA to sell and deal with loans made by the Agency, there is some doubt as to the extent to which this authority would support the issuance of participation securities based on such loans. The bill would specifically authorize issuance and sale, either directly by SBA or through the Federal National Mortgage Association-FNMA-on behalf of SBA, of participation certificates representing beneficial interests based on principal and interest collections to be received on account of certain loans held by SBA. It is believed that such participation certificates would be more readily salable to banks and other investors than individual SBA loans in many cases.

The bill contains two basic provisions, one authorizing participations issued by SBA and the second authorizing SBA and FNMA to enter into a trust agreement providing for the issuance of FNMA participations based on obligations held by SBA. Alternate availability of the two procedures would be advantageous in enabling choice of whichever method appears most appropriate at particular times in view of SBA's current loan portfolio, the condition of the financial market, and other administrative considerations. It is expected, however, that at least initially the FNMA route will be utilized, in view of FNMA's experience and acceptance in the securities market.

PARTICIPATIONS ISSUED BY SBA

The bill would authorize SBA to set aside as a separate part of its revolving fund, collections of principal and interest on certain pools of its loans which the agency would establish. SBA would then issue, offer, sell, and fully guarantee participation certificates evidencing a beneficial interest in such collection receipts. The agency would also be authorized to purchase such participation certificates, and if necessary to utilize any part of its revolving fund for payments required on account of the certificates. Proceeds from sale of the participations would be deposited in SBA's revolving fund.

Such participations would be lawful investments and could be accepted as security for all trust, fiduciary, and public funds, the investment or deposit of which is under the authority and control of the United States or any officer thereof; would be exempt securities within the meaning of laws administered by the Securities and Exchange Commission to the same extent as securities issued or guaranteed by the United States or its instrumentalities; and also would be exempted from certain restrictions placed on bank securities activities by the Federal banking law. These exemptions and investment attributes for SBA participations would be similar to those which have already been provided by statute for the FNMA participations discussed below.

PARTICIPATIONS ISSUED BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION

The bill would also clarify SBA and FNMA authority to enter into a trust agreement, under which the Federal National Mortgage Association as fiduciary would sell and guarantee its participa

tion certificates based on principal and interest collections to be received on loan obligations held by SBA. Title VII of the Housing Act of 1964 authorized FNMA to enter into such agreements with respect to certain first mortgage obligations, and the bill would extend this authority to other types of obligations held by U.S. Government agencies.

Under this arrangement, SBA would set aside certain of its loans, guarantee them, and subject them to a trust. FNMA, as trustee, would issue its participations based on such obligations and on the right to receive principal and interest collections therefrom. FNMA would pay to SBA the proceeds from sale of such participations for deposit in SBA's revolving fund. The revolving fund could be utilized for payments on account of the certificates, and SBA would be authorized to pay FNMA appropriate expenses incurred pursuant to the agreement and to purchase when necessary outstanding FNMA participations issued on SBA's behalf. Such FNMA participations would have investment attributes and exemptions similar to those described above for SBA participations.

As indicated below, collections from loans set aside for pooling would supply ample funds to meet payments on the FNMA or SBA participations issued. However, the bill also provides a special authorization for appropriations to the extent any additional amounts required were not available in the revolving fund. DESCRIPTION OF POOLING AND PARTICIPATIONS

The loan pool established by SBA under these authorities would be required, of course, to contain loans whose principal and interest collections would be ample to meet payments due on participations issued for the Agency. It is anticipated that the outstanding principal amount of loans in the pool would substantially exceed the amount of participations issued. While all types of obligations held by SBA may be included, it is probable that a majority of the loans in the pool would be business loans and development company loans. Substitution of loans would be made if determined to be necessary or desirable.

mately $350 million of participations Current plans call for sale of approxiduring fiscal 1966 if the legislation is enacted. At present, no determination has been made concerning the terms and features of participations to be offered. This, of course, would depend on such factors as conditions in the financial market, and the most suitable arrangement from the Government's viewpoint.

AUTHORIZATION FOR FOREIGN RELATIONS COMMITTEE TO INVES

TIGATE THE LEGALITY OF SHIPPING RESTRICTIONS ON WHEAT

Mr. SYMINGTON. Mr. President, in the absence of the distinguished junior Senator from South Dakota, and in that I fully agree with the purport of his proposal, I submit on behalf of Senator McGOVERN and myself the following resolution and ask for favorable Senate action thereon.

I ask unanimous consent that the full text of the resolution be printed at this point in the RECORD.

The PRESIDING OFFICER. The resolution will be received and appropriately referred.

The resolution (S. Res. 144) was referred to the Committee on Foreign Relations, as follows:

S. RES. 144

Whereas the Executive Branch of the Gov

ernment of the United States requires that export licenses for shipment of wheat sold in regular commercial channels to Russia and satellite countries shall be conditioned on shipment of 50 per centum of such cargo in domestic carriers; and

Whereas the Senate is advised that the

State Department has informed the Maritime Advisory Committee that such restrictions or preference provisions are in violation of our Government's commercial treaties with at least 30 nations, and

Whereas the State Department advised the Maritime Advisory Committee that exten

sion of U.S. flag preference into the commercial trade area would arouse violent reaction among friendly nations and constitute a reversal of foreign policy of at least a century duration in relation to shipping discriminations; and

Whereas the imposition of such restrictions on licenses for commercial wheat export appears to constitute a clear violation

of Sec. 3(c) of the Export Control Act of 1949, as extended and amended by Public Law 89-63 enacted by the present Congress: Now, therefore, be it

Resolved, That the United States Senate authorize and direct its Foreign Relations Committee to investigate as early as possible whether such shipping restrictions in relation to wheat constitute violation of treaties and law, and to report its findings to the Senate on or before October 15, 1965.

POPULATION BILL PUBLIC HEARINGS CONTINUED WEDNESDAY, SEPTEMBER 8, ROOM 3302, NEW SENATE OFFICE BUILDING-WITNESSES INCLUDE REPRESENTATIVES FROM DADE COUNTY PUBLIC SCHOOLS, MIAMI, FLA.

Mr. GRUENING. Mr. President, public hearings will continue tomorrow,

Wednesday, September 8, at 10 a.m. on S. 1676, my bill to coordinate and disseminate birth control information upon room 3302, New Senate Office Building. request. The hearings will be held in

mittee on Foreign Aid Expenditures will The Government Operations Subcomhear witnesses who are concerned about school problems in the Dade County Public Schools in Miami, Fla. Hurricane Betsy permitting, the subcommittee hopes to learn a great deal from the testimony of Superintendent Joe Hall, Chief of Planning and Policy Frank Sloan, and Chairman Jane S. Roberts of the Dade County Board of Public Instruction.

To round out the hearing the Subcommittee on Foreign Aid Expenditures has asked Mr. Clifford Nelson, president of the American Assembly of Columbia University, New York City, to describe in detail how the American Assemblies on Population have contributed to the population dialog throughout the Nation. Mr. Nelson will also discuss briefly the work of the American assembly in other lands.

"We are restoring an elegance and style to this city," he said in a somber, formal tone. And then he broke into a smile and added: "And it's fun, exciting to think what can be done."

He spoke about a planned cultural center, experimental low-income housing, a new, integrated cooperative, employment programs for dropouts, new schools and-most of all-a community spirit that has allowed his planners to exercise their imaginations.

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

NEW HAVEN PURSUING THE AMERICAN DREAM OF A SLUMLESS CITY-THIRD OF AREA BEİNG REBUILT AT A COST OF HALF A BILLION (By Samuel Kaplan)

NEW HAVEN.-The American dream of a slumless city may be fulfilled here.

About a third of this city-6 square miles is being renewed at a cost that will exceed $500 million in public and private investments.

The result of $300 million spent in the last 10 years has changed the face of New Haven from one of downtown decay and festering slums to commercial complexes, modern housing developments and stately rehabilitated homes.

Court Street, a skid row 10 years ago, is now a prestige address. New, imaginative housing developments have attracted middleclass families back from the suburbs.

The commercial slums on Church Street have been replaced by gleaming stores. Land values downtown have doubled. And the hum and clatter of construction is everywhere.

Though the large slums of crumbling tenants, clapboard shacks and firetrap factories are gone, there are still a few small pockets of decay-shabby, decay-shabby, overcrowded frame buildings second-and-third-generation welfare cases and low-income Negro families, recent migrants to this city of 152,000. OFFICIALS CONFIDENT

But in city hall on Church Street, and in Washington, officials are confident that New Haven has perfected the tools of urban renewal, combined them with an imaginative antipoverty program and is well on the way to victory.

"I think New Haven is coming closest to our dream of a slumless city," Robert C. Weaver, Federal Housing and Home Finance Administrator, said recently in an interview. Most housing experts across the country agree.

"It is like a dream. Everything is done with as much style," said a member of a New York City community planning board after a recent tour. "If only New York had half of New Haven's imagination and a quarter of its spirit."

Civic pride is everywhere.

Taxicab drivers occasionally put their fare flag down and drive out of the way to show a curious visitor a new building. Elderly persons sit on benches in the city green and marvel aloud at a 14-story renewal project rising to the east. Boccie players outside a community center halt their game to give a detailed history of how their neighborhood was renewed. And Yale professors reflect favorably upon it all.

A GREAT RENAISSANCE

Reuben A. Holden, secretary of Yale, called the renewal program "a great renaissance for the city" and said the university was proud

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NEW GRANT DUE

Despite its size, New Haven ranks only behind New York, Chicago, and Philadelphia in total Federal grants received for urban renewal. So far the Housing and Home Finance Agency has channeled and earmarked about $75 million to the Connecticut port city.

On a population basis, New Haven ranks first in the country, with Federal urban renewal grants averaging $458 for each resident. The figure for New York City is $31.

New Haven will soon receive another grant, to begin the new Federal rent subsidy program for low-income families. It will involve moving 200 families into private housvolve moving 200 families into private housing.

The families apply 21.8 percent of their income to rent, with the Federal Government paying the landlord the difference between that amount and the actual rental. That means, for example, that if a family's total monthly income is $300 and its rent is $85 a month, it pays the landlord $65.40 and the Government adds $19.60.

Mayor Lee, in a move typical of the city's attitude of taking advantage of every available Federal program, went to Washington to apply to the Public Housing Authority the day the program was signed into law early this month. Approval is expected within 3 weeks.

"We don't like to waste time," he said.

POLICY IS UNUSUAL

The new program is consistent with the city's unusual policy of trying not to move low-income families into low-income projects. Only low-income housing for the elderly has been constructed in renewal areas.

Melvin J. Adams, administrator of the city's redevelopment agency, explained that when houses had to be demolished, residents were dispersed to foster integration and prevent the creation of new pockets of slums.

He said that a major problem in the Dixwell area, a community just north of the Yale campus now undergoing renewal, was the concentration of 900 low-income families in a large housing project built before Mayor Lee took office.

To offset the project, a 129-apartment cooperative was built in the neighborhood. An additional 81 units of middle-income housing is planned for the area, as is extensive rehabilitation of privately owned homes.

Edward Cope, head of the agency's Dixwell office, reported that 253 buildings containing 758 apartments were being rehabilitated. The office assists owners by giving architectural advice, locating reliable contractors and helping them to obtain mortgages, once a problem in this predominantly Negro neighborhood.

REHABILITATION THE KEY

According to Mr. Lee, the key to the city's housing renewal program has been the rehabilitation of structurally sound, but deteriorated buildings. More than 7,500 buildings have been rehabilitated in the last 10 years.

The Wooster Square area, just south of the business district, is cited by the city as the best illustration of its renewal program and its goals.

Ten years ago the area around the square, an old Italian neighborhood, was fast slipping into decay. But though its crumbling brownstones, tenements, and old factories were ripe for the bulldozer, only the worst buildings were demolished and close to 1,000 were saved through rehabilitation.

This would have been enough to save the physical community, but the city added a few touches that has lifted its renewal program out of the ordinary.

It sought leading architects to design new housing on the site of demolished buildings, encouraging them to use their imagination to scale the developments to the surrounding homes. It set aside land for a sitting park, and brought in Hideo Sasaki, the landscape architect, to design it. And it sought off-street parking to clear the residential streets of parked cars.

CENTER IS DESIGNED

To encourage a neighborhood identity, it selected the site of a burned-out factory where 15 persons had died and had the architectural concern of Skidmore, Owens & Merrill design a community center and school.

The center is a small city in itself. Besides the school, it includes a library, community meeting rooms, a youth center, city social service offices and a center for the elderly.

Wooster Square is now considered a desirable neighborhood. It has attracted back some of the middle class the city was losing to the suburbs and, through its moderate income developments, has brought the first Negro families into the area.

The city now hopes to repeat its Wooster Square success in Dixwell. Similar renewal plans, calling for rehabilitation, a mixture of housing and community facilities, are being developed for the Newhallville and ing developed for Dwight sections.

Not to get into a rut on housing renewal formulas, however, the city has contracted with Ludwig Mies van der Rohe, the architect, to design a varied housing development on 20 acres southwest of the downtown area.

LOCAL ARCHITECTS USED

City officials note that west of the site will be a new high school designed by Eero Saarinen and Associates shortly before the architect's death.

The city also has used local architects, notably Paul Rudolph, former dean of Yale's School of Architecture. His midtown parking garage and low-income housing project for the elderly in the Dwight section are distinct, if not controversial designs.

"It certainly adds some excitement to our skyline," commented Mayor Lee.

The city's housing renewal projects almost completely surround the business district, which is undergoing vast renewal itself.

A 14-story office building, a 319-room hotel, and a public plaza soon will complete the front block complex which already includes two new department stores, Malley's and Macy's and a new First New Haven National Bank. Also to be added to the skyline I will be the Knights of Columbus international headquarters, a 26-story stark, modern structure.

The Southern New England Telephone Co. already has completed its office building and work will soon be finished on the State mental health building and the Yale University epidemiology and public health building.

LUXURY APARTMENTS BUILT

To the north, two high-rise luxury apartment houses with a total of 518 units have been filled. A third will soon rise, as well as two smaller apartment houses.