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Health-food quackery is bad if it only raids cery store items: miracle foods alleged to pre- tion, blueprinting the first national action your purse. But gobbling potent vitamins vent dangerous disease; medically unsuper- program for combating mental retardation; and off-beat nature foods willy-nilly can vised diet pills; extravagant mail-order prom- the President's message to Congress on mendamage your body, too, warns Dr. Stare: ises; and “health food" lecturers.

tal illness and mental retardation, recom“There are times when persons with real Alarmed at quackery's spread, authorities mending Federal programs for implementing health problems rely on the products of nu- are mounting campaigns on many fronts. the report of the President's panel; and the tritional quackery rather than on sound They look to public education as a means White House Conference on Mental Retardamedical treatment. There are times when of unmasking the culprits.

tion. I daresay that even the most optimistic people actually create or contribute to their This is one of the aims of a quackery among you would not have anticipated this dietary deficiencies by abandoning their congress presently to meet in Washington. dramatic turn of events. normal diets and turning to so-called health But there is also the sterner approach. Says Now your cause is receiving unprecedented foods."

Milton P. Duffy of California's Department attention at the national level. With Dr. One of these was a young young secretary. of Health:

Stafford Warren as a Special Assistant to the Ordinarily in good health, she began to sense “From the vantage point of 47 years of President for Mental Retardation, you have periodic spells of weakness and fatigue. Her dueling with quacks, I firmly believe there a spokesman at the highest reaches of Govfriends said she was "probably anemic.” is nothing so educational as a stretch in jail- ernment. And it is your great and good forWhen she later heard a television pitchman's or a stiff fine which takes the profit out of tune to have as a champion, Mrs. Eunice smooth spiel for pepping up "tired blood,” profiteers.”

Kennedy Shriver. the secretary convinced herself she had iron

But in reciting these instances of recent deficiency anemia.

achievements for the cause of mental retarda

TREATMENT OF THE MENTALLY She swallowed the tonic for 8 months.

tion, I do not intend to overlook the steady Meanwhile, she suffered progressive weak


accomplishments over many years of the ness, weight loss, and swollen ankles.

Mr. WILLIAMS of New Jersey. Mr.

National Association for Retarded Children Frightened now, she went to a doctor. President, the National Association for

and its affiliated State associations and local Diagnosis: chronic nephritis, a kidney disease Retarded Children recently held its an

chapters. she had all along.

Your organization-like the many other Though she was anemic, too, this stemmed nual convention in Washington. The

voluntary service groups in this country, from diseased kidneys-not from causes that outcome of this meeting was an indica- embodies two outstanding characteristics of could be altered by iron tonic. Luckily, the tion of great progress in prevention, the American people: the compassionate gendoctor saved her life, but others who self- treatment, and rehabilitation of the

treatment, and rehabilitation of the erosity of the Good Samaritan and the free doctor their symptoms with pills, powders, mentally retarded.

cooperation of the self-reliant. Let us hope and potions aren't always so fortunate.

Richard J. Hughes, Governor of New

that this tradition of voluntary service shall Slick nutrition peddlers craftily skirt the

prosper for, as demonstrated by your efforts, law just outside of the Goverment's reach. Jersey, was the keynote speaker at this

it adds immeasurably to the health of our Nutritional quackery is the hardest to prove. convention. Governor Hughes has been

society. If it were not for the helping hand Occasionally some are netted.

vitally interested in the work of this or- which you have extended to the mentally The Federal district court, Detroit, re- ganization. He is chairman of the Gov- retarded, there would be an even greater cently gave William L. Abt, naturopath and ernors' Conference Committee on Pub- burden on the conscience of America for the itinerant health food lecturer, a 1-year lic Health and Welfare. Within New long years of accumulated neglect. suspended jail sentence and fined him $1,000. Jersey he has helped to establish an in

My emphasis on the splendid contributions In 1961 Abt lectured Detroit audiences, sold terdepartmental committee on lifetime

of voluntary associations and the virtues of Health foods, peddled a book on the keys

individual generosity and self-reliance should disability and has invited the formation to health and longevity, and offered his

not be misunderstood as opposition to the products for the treatment and prevention of a Governors' advisory council on the

social programs of Government rightly reof ailments including cancer, glaucoma,

same subject. The Governor's pending sponsive to human needs and the demands of arthritis, heart conditions, and ulcers, FDA bond issue includes provisions for

social justice. said.

strengthening institutional facilities and Edmund Burke once observed that “govWhen he launched a new series last March, developing community centers for group provide for human wants.” If we are wise

ernment is a contrivance of human wisdom to FDA inspectors rushed to the scene and ob- living, sheltered workshops, day care, tained criminal information, charging the and other new programs.

we will recognize that there is a proper rolehealth foods were misbranded because of

indeed, I would say, an obligation-for govlecture statements. Police arrested Abt be

Governor Hughes' speech is a fine

ernment action, not merely to encourage the fore he could return to his Canadian home. summary of the present efforts to aid

activities of private individuals and groups, Later, said FDA, the health-food lecturer retarded children. I ask unanimous con- but to provide for the general welfare when changed his plea from innocent to guilty. sent that this speech be printed in the human needs are beyond the competence of In truth, most. Americans must go out of RECORD at this point.

individual citizens and their voluntary their way to avoid being overnourished.

There being no objection, the address

associations. Then why the fantastic health-fad boom? was ordered to be printed in the RECORD, lem and the demands of social justice neces

Certainly, both the dimensions of the probThe experts sum it up: Ignorance, fear,

as follows: superstition, and hypochondria. All of it

sitate the use of that "contrivance of human exploited by an army of glib health huck- ADDRESS OF Gov. RICHARD J. HUGHES TO AN- wisdom" in the service of the mentally sters.

NUAL CONVENTION OF NATIONAL ASSOCIATION retarded. Recently, FDA chronicled four myths of FOR RETARDED CHILDREN, MAYFLOWER HOTEL, In his message to Congress on mental illnutrition that can help you detect and avoid WASHINGTON, D.C., OCTOBER 23, 1963

ness and mental retardation, President Kenthe health-quack's clutches:

It is indeed a privilege for a fairly recent nedy clearly stated the reasons for the inMyth No. 1: Impoverished soil produces recruit in the fight against mental retarda- volvement of Government. In his words: inferior food leading to malnutrition that tion to be asked to address a meeting of com- “The fact that mental retardation ordican only be offset by natural foods grown bat veterans in this field. Despite 10 active narily exists from birth or early childhood, by organic farming.

years on the New Jersey bench, and numer- the highly specialized medical, psychological, Myth No. 2: Our food is devitalized by ous civic interests, the tragedy of retarda- and educational evaluations which are reoverprocessing and fails to provide proper tion was but a sad statistic to me until Í quired, and the complex and unique social, nourishment. (This, says the American became Governor. Then a full confrontation educational, and vocational lifetime needs of Medical Association, "is a condemnation of with the dimensions of this problem re- the retarded individual, all require that there our food industry that is, in fact, supplying shaped my entire outlook.

be developed a comprehensive approach to us with the most nourishing and whole- And so, as with most recruits, I expect that this specific problem." some foods in the world.")

I will have to make up in enthusiasm what For the first time we have a President who Myth No. 3: Most, if not all diseases are I lack in knowledge of the complexities of has given full recognition to this Nation's caused by faulty diet-arthritis, heart dis- the problem of mental retardation. Yet, I obligation to the afflicted and their families ease, anemia, and brittle bones, to name a draw a great measure of moral support-as I and has initiated a bold new approach to the few.

am sure you do—from the fact that the Pres- problems of mental retardation. We all have Myth No. 4: Most Americans suffer from ident of the United States is joined with us a duty-every State in the Union-to be"subclinical deficiencies” curable only by in this battle.

come involved in the action program set dietary supplements. Nonsense, says AMA. Truly this must be an exciting time in the forth in the report of the President's Panel Subclinical means without signs or symp- life of the National Association for Retarded on Mental Retardation. toms, unrecognizable with no evidence of Children as you review the accomplishments What is needed is a partnership of service disease. By its very definition it cannot of the past year. After years of struggling to the mentally retarded. And if this partexist.

in the darkness, you did not despair and in nership is to be successful, if it is to deliver FDA, too, has issued warnings against: the past year alone you can tally more sig- a satisfactory range of services to those afshotgun vitamin formulas, promising as nificant progress than in earlier decades. flicted, we must put aside those petty many as 32 vitamins; expensive "organic" Among these notable events was the report jealousies and parochial concerns which foods that are no more nutritious than gro- of the President's Panel on Mental Retarda- often bog down the bureaucracy. We must put aside the sterile debates over intergov- citizen confronting me with the query- those conditions which cause so much reernmental relationships which ignore the "Why don't you worry about the 97 percent tardation. For as was stated by the Presiactual arrangements of roles and functions of us (taxpayers) who aren't mentally re- dent's panel: of the American system of cooperative cooperative tarded?"

"Our greatest hope for a major victory federalism.

Perhaps it might be possible to convince over mental retardation lies in the general Our focus should be functional-fixed on such a person that the financial conse- measures-long-range in character-which those persons in need of services. All levels quences to the taxpayer of untreated, un- are designed to overcome the social and ecoof government, along with private individ- trained mentally retarded can be substan- nomic ills which plague the underprivileged uals and associations, should work together tial. In this as in any field, preventative in our society." with each contributing the service of which action is sound economics as well as humane The National Association for Retarded it is best suited and most capable. This public policy.

Children will undoubtedly join in such a concept assumes no prejudice against any Efficient and effective programs of service broad spectrum attack. I would hope that level of government, rather it seeks to reflect require comprehensive planning and coordi- you will be found fighting not only for spethe reality of the American system. Amer- nation of effort. There is a critical need for cific programs, such as PKU testing, sheltered icans have fashioned many combinations of cooperation between the departments and work programs and mental retardation faintergovernmental programs which are de- agencies at all levels of government. We cilities construction, but for the kinds of vised not to achieve a single logical pattern in New Jersey, working with the New Jersey social and economic policies and programs of fixed jurisdictions, but to get on with the Association for Retarded Children, have es- which offer the promise of raising the living business of America.

tablished this year an interdepartmental level of the underprivileged. While we may Having recognized the practical diversity committee on lifetime disability. It is com

never completely eliminate adverse environof intergovernmental arrangements, I would posed of five cabinet members from the ap- mental conditions, each advance against the like to call attention to the important role propriate departments and a representative unrealized needs of those who are in want of State government:

of the Governor's office, and its function is pays the dividends of fewer retarded children. "State leaders, especially those in public to plan and coordinate State services to all

This is a great fight, and one which may positions, have a particularly useful perspec- those with permanent handicap. The aim,

in our time never result in total victory; tive on the needs of their citizens as well of course, is to strengthen our services to the

but it is a fight which edifies its participants as on the State's resources for meeting those handicapped so that they will be brought

and permits them to leave on the face of needs. This perspective is denied to the out of the shadows and into the world of

this troubled world a record of noble and local community because it is too small and opportunity for personal growth, self-respect,

opportunity for personal growth, self-respect, high achievement, perhaps the highest withtoo close to the problem. It is likewise and independence.

in the reach of ordinary mortals. Underdenied to the Federal Government because To augment the work of the interdepart

standing this, I rejoice in being your comit is too large and too distant, and lacks mental committee, I have invited a broad

panion in this struggle upward toward the the authority for direct action which has representation of lay and professional citi

light. been reserved to the States."

zens to form a Governor's advisory council It is clear then that the success or failure

on lifetime disability. The council will bring of this major national effort will depend the public, voluntary, and professional efforts

STAN MUSIAL upon the response of our States to the rec- into coordination with the planning and the ommendations of the President's panel. programs developed by the interdepart- Mr. WILLIAMS of New Jersey. Mr. Speaking as Governor of New Jersey, I mental committee.

President, one of baseball's truly great fully accept that obligation, that responsi- As I see the function of the advisory coun

men has retired this year after 22 years bility for leadership in my own State. cil, it would operate as a constructive critic

and as a consumer's representative, so to Speaking as chairman of the Governors'

in the sport. Stan Musial, for the full Conference Committee on Public Health speak. For this reason we have insisted on

duration of his career, played dedicated and Welfare, I urge that my fellow Govern- a clear distinction between the government

and sporting baseball for the St. Louis ors throughout the country recognize this

authorities with administrative responsibil- Cardinals, and has now retired from acobligation and their responsibility for

ity and the advisory group comprised of pro- tive playing to become a vice president leadership in our fight against mental re

fessional people, interested lay leaders, and of the ball club. The Daily Home News, tardation, representatives of the consumers of the

of New Brunswick, N.J., on August 28, No elected official should be hesitant to

I would like to think that an advisory

1963, printed an editorial honoring join in partnership with other levels of government and voluntary associations for council would be in a position to alert the

"Stan, the Man," Musial. I would also service to the mentally retarded. Yet, some Governor as the watchdog of the State's pro- like to call your attention to a letter to are reluctant to translate their admitted grams. It does not serve the interest of the

the editor written by Mr. John J. Wolmoral obligation into the necessary facili- handicapped to have an advisory council so czanski, executive director, New Jersey ties and programs. It is up to you—your closely identified with those planning and Polish-American League. Mr. Wolczanassociations working with other interested administering services that it would fail to

ski pays appropriate tribute to Stan individuals and groups-to build the bon- exercise a critical function for fear of offend

Musial, "son of a Polish immigrant." fires under your State leaders and your fel- ing a pleasant, but ineffective government

ing a pleasant, but ineffective government Mr. President, I ask unanimous consent low citizens-and to keep them burning official. until you get action.

And lest I seem to be deserting members of that this editorial and letter be printed With the full support of the national the governmental establishment, let me offer

in the RECORD. administration now committed to your

a cautionary word to those interested and There being no objection, the editorial cause, there has never been a more opportune single-minded citizens who are apt to be and letter were ordered to be printed in time to develop public awareness of the overcritical of the efforts of government au- the RECORD, as follows: problem of mental retardation so that sup

thorities. Most such citizens do not feel port for new and improved programs can the broad impact of competing demands

[From the New Brunswick (N.J.) Home News, ben generated in the local communities. upon the scarce resources of their govern

Aug. 28, 1963) I wonder, for instance, how many of our ments. Nothing is quite as sobering as look

LEARNING FROM STAN citizens appreciate what might be called the ing down the doubled-barrel of increasing Stan Musial, no doubt, has taught many "'iceberg factor” of mental retardation, that needs and diminishing revenues.

people many things. (This includes plenty great body-estimated to be 75 to 85 percent This point was well made by the late Com- of pitchers not to serve up a fat pitch to of mildly retarded—who are the products missioner John Tramburg, who many of you him.) Even so, there's one lesson that all of of poverty and the other kinds of social and in other States admired and respected as us-especially the youngsters-can learn cultural deprivations found in city tene- we in New Jersey did. In speaking to the from this sterling player, retiring after 22 ments and rural slums. The public must be 1961 annual convention of the American As- years of major league play. made to realize that such conditions result sociation on Mental Deficiency, Commis- His great success was compounded on a in a tremendous waste of human resources sioner Tramburg warned of professional disappointment. When he broke into baseand a substantial drain on the public treas- workers who "ask for program expansion ball in 1938 he wanted to be a pitcher. ury.

without successfully undertaking broad in- After 2 years he developed arm trouble and But let no one think that the task will formation policies that might result in the nearly quit the sport. His manager in the be easy. I can testify to that from my own taxpayer and elected representative support minors talked him into trying the outfield present campaign to secure the passage of ing such programs despite any reflected in- and his willingness to stick it out, even a bond program which in the field of mental crease in taxes."

though he felt he'd failed, led to fame and retardation would provide funds for Although adding that note of caution, I records in the book. strengthening our institutional facilities and am not an apostle of patience. Considering In Gene Ward's column appearing in the developing new programs, including com- that we are faced with what President Ken- New York Daily News (Sunday edition) on munity centers for group living, sheltered needy has called “the tradition of neglect,” Sunday, September 29, 1963, a notable stateworkshops and day care. I would alert you impatience is clearly required. And we ment by Hank Sauer, the old Cub and Giant to the type of citizen who is immune to the must communicate a sense of impatience to outfielder, summed it up for all of us in one call of conscience, whose sole interest is the public as well as the realization that sentence. “Any guy who ever says anydefined in tax dollars: I recall one such there is much that can be done to eliminate thing bad about Stan Musial has to have

CIX -1324

something wrong with him." That said it scheduled, wide public discussion may any good legislation requires prior to enall.

help to bring about a consensus on the actment. On Sunday, October 6, the color magazine need for this legislation.

There has been considerable criticism section of the New York Daily News again (God bless them), a picture and story by

In introducing the amendment, I did of the Treasury Department relative to

its enforcement of the Antidumping Stan will be published by Benjamin K not contemplate that the precise lanHandel, magazine editor.

guage of the proposal would ultimately Act, and in all fairness, I asked the be adopted. Rather, the proposal was

Assistant Secretary of the Treasury, STAN MUSIAL, “GENTLEMAN OF BASEBALL” AND designed to provoke discussion, hearings James A. Reed, to comment for the rec

GREAT POLISH ATHLETE, RETIRES and ultimately to produce legislation re- ord on some of the major criticism of Hon. HUGH N. BOYD,

fined in the legislative process which his Department on this score. President, the New Brunswick Home News, would carry out the general purposes of

The able Assistant Secretary of the New Brunswick, N.J.

the proposal. Those purposes I now wish Treasury consequently prepared for me DEAR MR. BOYD: As a great admirer of to review briefly.

a letter which I am pleased to note demStanley F. Musial, the great St. Louis Cardinals National League baseball star, I wish

On the basic problem of dumping, I onstrates a considerable stepup in the to cordially thank you for the excellent edi- believe there to be very wide agreement. level of enforcement of the Antidumping torial you published on “Stan, the Man" in Dumping is an unfair trade practice.

Act since the advent of the Kennedy your newspaper on Wednesday, August 28, The Antidumping Act of 1921 is sound administration. In other words, while 1963. in principle. And there appears to be

I believe that the law can be amended It was a never-forgettable thrill for me

widespread agreement that only changes to provide for better procedures, we must personally to represent New Jersey Gov. in the act can provide for fairer and more

applaud the action of Treasury in its Richard J. Hughes and the people of New effective administration of the act.

improvement over the previous adminJersey by presenting a citation to Mr. Musial at the New York Polo Grounds, where a In its efforts to tighten loopholes that istration. "Musial Night” was held in his honor last have appeared in the act, this legislation

At the same time, I am pleased to be year. Among other admirers and messages proposes the following:

informed by Assistant Secretary Reed sent that evening was from the President of Legal authority for Treasury Depart

that the Department is preparing to conthe United States, John F. Kennedy.

ment flexibility necessary to meet the duct “a review of the entire procedure We, from 8 to 80 can learn many facts of life from the son of a Polish immigrant, who

problem of dumping from Communist in the Treasury Department and the countries.

Customs regulations under the Antiis known as the “Gentleman of Baseball.” Among his virtues, he never argues with an

Consolidation of complaints against dumping Act to determine whether there umpire or refuses to give his autograph. dumping, so that related complaints may

are changes which should be made to imBaseball will lose a great public relations be filed and considered together, rather prove the administration of the law." man. We will miss his happy smile and pe- than being sent to the Tariff Commis

This is a constructive, affirmative atculiar stance at the home plate. sion country by country.

titude, and I commend Assistant SecreHe is a credit to American sportsdom. God bless him.

Penalties against filing of false infor- tary Reed and the Department for this

mation or failure to file on the part of decision.
Executive Director,
foreign manufacturers, foreign exporters

Mr. President, I ask unanimous conNew Jersey Polish-American League. and importers.

sent to have printed at the conclusion Strengthening the Treasury Depart- of my remarks a letter from Assistant

ment's ability to consider appropriate Secretary of the Treasury James A. Reed, ANTIDUMPING LEGISLATION larger margin in evaluating pricing for- in which he reviews the recent history Mr. HUMPHREY. Mr. President, as

mulas used by "dummy" foreign ex- of his Department in the antidumping the first session of the 88th Congress porters.

field. draws into its final weeks, it becomes in

Permitting quantity discounts for ex- There being no objection, the letter creasingly difficult to expect any action porters to the United States only if they

porters to the United States only if they was ordered to be printed in the RECORD, this year on a piece of legislation that actually reflect cost savings, as in the as follows:

TREASURY DEPARTMENT, remains, nevertheless, of important and Robinson-Patman Act. even vital concern to our economy. I In seeking to provide fairer, more

Washington, September 11, 1963.

The Honorable HUBERT H. HUMPHREY, am referring to the antidumping amend- effective administration procedures, the

U.S. Senate, ment, S. 1318, and H.R. 5692, and other amendment would

Washington, D.C. related bills in the House, which would

Place a reasonable limitation on

DEAR SENATOR HUMPHREY: I appreciate very tighten loopholes and provide for fairer, amount of time that the Treasury De- much your giving me the opportunity to more effective procedures in the admin- partment can take in dumping cases, present a few comments on behalf of the istration of the Antidumping Act of 1921. with escape valves where necessary. Treasury Department relative to enforcement What we have proposed is a moderate,

Require the Treasury to publish fuller

of the Antidumping Act. constructive amendment which does not reports on facts and reasoning behind

Our job in the Treasury Department is to alter the act of 1921's basic purpose, the Treasury's dumping determinations.

determine if there is dumping as to price

that is in the typical case) if imported philosophy, or function; nor does it con

Require Treasury to issue proposed re

goods are sold in the United States below a flict with the Trade Expansion Act. ports so that interested parties may have foreign producer's home price. The Tariff This bill has received the enthusiastic

an opportunity to correct any fallacies Commission's job is to determine if there is bipartisan support of 27 Senators and 50

and to supply additional information. injury to American industry. If both inRepresentatives, as well as about 2 Require that complainants under the jury and price discrimination are present, dozen affected trade associations, indusact should have disclosed to them non

a dumping finding is made and dumping confidential cost data used against them.

duties are assessed. In addition, where price try groups and labor unions.

discrimination is found but the foreign proWhile it appears that time may run Provide for dismissal by Treasury

ducer thereafter makes price revisions to out on us this calendar year, with the within 15 days of any unsupportable correct the situation and the amounts indecision to conduct hearings on the complaint. Failure to dismiss com- volved are minimal, Treasury often closes President's medicare bill in the House plaint would not cause automatic with- the case without reference to the Tariff ComWays and Means Committee, I know holding of appraisement.

mission upon assurance that the revisions

will remain in effect. It should also be noted that the sponsors of the proposed Anti- Clarify the right to judicial review, for

that while the dumping cases are being dumping Act amendment are deeply both importers and complainants, of

processed, Treasury withholds appraisement hopeful that hearings will be called early Treasury and Tariff Commission find

if there is reason to believe or suspect the next session, and that Congress may pro- ings.

presence of price discrimination. ceed to an orderly consideration of this Mr. President, these are the general In the past 9 years Treasury has found legislation.

objectives of the amendment. I recog- price discrimination and, accordingly, has In the meantime, interest in this nize that the specific proposals may very

taken action in protection of U.S. industry amendment remains high, and discus- well be improved or modified in the leg

in approximately one-third of the cases pre

sented to it. This enforcement record has sion of the purposes and possible effects islative process. I shall welcome the

been considerably stepped up under the Kenof the amendment continues vigorously. close attention of the appropriate com

nedy administration. Whereas, during the This is well, for in the period until hear- mittees of the Congress, and the oppor- period 1955–60, determinations of dumpings are definitely determined and

and tunity for full public discussion which ing price by the Treasury or price revisions

by foreign producers ending dumping were cluded in H.R. 7885 which authorizes the Great strides have already been underfound in only 27 percent of the cases proc- President to "assist in promoting the or

taken since the Charter of Punta del Este essed, the figure for 1961 was 40 percent, and ganization, implementation, and growth to lay the groundwork and the basis for the figure for 1962 was 60 percent. Withholding of appraisement, which often brings

of the cooperative movement in Latin the kind of developments which the new imports to a stop while cases are being proc- America as a fundamental measure to

America as a fundamental measure to legislation in H.R. 7885 envisages. In essed, has increased from an average of 10

ward strengthening of democratic in- February of this year the cooperative percent of cases processed in the middle stitutions and practices and economic movement of this hemisphere met in 1950's to 50 percent in the past year.

and social development under the Al- Montevideo, Uruguay, to formally estabWith reference to steel products, the Treas- liance for Progress.” This was the

the lish the Organization of the Cooperaury Department has passed upon five cases amendment I introduced 2 years ago to tives of America (OCA). Latin Amerinvolving steel wire rods of which four were

encourage giving further attention to the ican cooperatives are for the first time, sent to the Tariff Commission with determinations of dumping price. Six cases are

cooperative movement in this hem- now united through their common orpending with regard to steel pipe, but no deisphere.

ganization to maximize the principle of cision has been reached in any of these cases.

There are today nearly 6 million peo- self-help. OCA undertook, with a limA year ago an interdepartmental study ple in Latin America who are already ited staff made possible by AID, a major group was formed to consider in detail what members of more than 16,000 coopera

members of more than 16,000 coopera- socioeconomic survey of the status of the improvements should be made in the admin- tives. These cooperatives are urban and cooperative movement in Latin America, istration of the Antidumping Act. Recom- rural. They deal in credit and fishing.

rural. They deal in credit and fishing. the favorable and unfavorable conditions mendations were formulated, largely de- They are trying to provide housing and for its development, and guidelines for signed to speed up the administration, which have now been placed in effect.

transportation. In short, they include its future growth. One hundred and Recently a study was completed by an

people from every walk of life. The thirty-six volunteers from seventeen outside consultant on the troublesome ques- charter of Punta del Este and the inau- countries performed this study, the first tion of low-price imports from Japan. Rec- guration of the Alliance for Progress are of its kind ever undertaken in Latin ommendations were made as to how this offering new hope and new expectations America. Secondly, the leaders of OCA, question should be further explored, and

among these people and among the mil- recognizing the necessity to unite and these recommendations are now being fol- lions who are not yet a part of any

lions who are not yet a part of any develop their programs throughout the lowed. It is natural that when the Treasury re

institution or system which permits them hemisphere, requested AID and AID had jects a complaint the domestic producer to participate in their own economic de- a major feasibility study made to show often alleges that his position, views on the velopment

velopment and the economic develop- them how to organize an inter-American law, and allegation of fact have been given ment of their countries. A strong cooperative financing system. inadequate or improper consideration. Simi- integrated cooperative movement offers The proposed cooperative financing larly, when the Treasury finds sales at a one of the finest means through which a system is intended to become a selfdumping price, the foreign exporter, his gov

significant segment of these masses can sufficient, privately owned credit system ernment, and the American importer are

organize their own institutions to permit likely to allege that the Antidumping Act is

which could finance Latin American cobeing enforced unfairly in favor of the inter

them to participate economically and operatives, attracting private capital est of domestic manufacturers. Accordingly, which, incidentally, will teach them the from the United States, Europe, and over the years we have received numerous value of a private enterprise system and Latin America rather than becoming protests from both sides. Since we endeavor the value of practicing democracy. It continuingly and increasingly dependent to administer the law with impartiality, this gives them a stake in the stability of on the U.S. Government. no doubt will continue to be the case. We their own government since they will, for do not, however, look on the situation with

The Inter-American Cooperative Fithe first time, own something which can complacency and are about to conduct a re

nance Institute-IACFI—would serve be lost. view of the entire procedure in the Treasury

the cooperatives of Latin America in Department and the customs regulations un

A strong cooperative movement pro

much the same way as the U.S. Banks for der the Antidumping Act to determine vides:

Cooperatives have served farm cooperawhether there are changes which should be First. Locally owned and locally con

tives in this country since 1934.

The made to improve the administration of the trolled institutions in the hands of the Central Bank for Cooperatives and its 12 law. people themselves through which their

associated regional banks in the United Sincerely yours,

savings and efforts can be utilized for JAMES A. REED.

States were organized as a private credit the improvement of their living stand- system although the Federal Governards;

ment contributed all of the initial capCOOPERATIVE MOVEMENT IN LATIN

Second. A growing private enterprise

ital and retained important controls AMERICA system;

over operations. Borrowing cooperatives

Third. A strengthening of the buying Mr. HUMPHREY. Mr. President, be- or marketing power of the smallest pur

have systematically increased their fore the Senate concludes its business chasers or sellers;

equity in the banks because they have tonight, I wish to comment on one par

been required to buy stock in proportion

Fourth. A means through which the ticular aspect of the foreign aid bill untrained can afford to hire the highly

to their loans. The Cooperative Banks untrained can afford to hire the highly began to retire the Government capital which is before the Senate. In my press trained to work in their interests on a entation in support of the foreign aid

in 1956; ultimately the U.S. Banks for self-sustaining basis; and program last week, I referred briefly to

Cooperatives will be wholly owned by the role of the cooperative movement as

Fifth. An incentive to save and invest their cooperative borrowers. This priapplied in the development of Latin for the future.

vate financial system can and does borAmerica.

Equally as important in a strong co- row approximately $500 million in Wall

Street without the guarantee of the GovLast week, in my speech on the Al- operative movement is the social effect liance for Progress, I referred briefly to of

ernment at interest rates only slightly the role which the cooperative movement

First. Developing leadership within higher than those paid by the Federal

Government. is playing in the development of Latin the institutions and an understanding of America. I mentioned that I have of- the role of leadership in community de- The proposed IACFI system for Latin fered an amendment to the existing aid velopment;

American cooperatives would be similarly bill to assist in the development in an

Second. Dramatizing in a practical financed and organized. The lendable inter-American cooperative finance sys

way the benefits of working together; resources of the central bank, in Washtem. The amendment was accepted by

Third. Dramatizing the meaning of ington, initially would come from the the Foreign Relations Committee and is democracy, majority rule, and the equal sale of stock to Latin American coopera

tives and from external financing from incorporated into the bill before the Sen- dignity and worth of the individual since ate, and also in the committee's report each individual has one vote as a person; the U.S. Government in local currencies on the bill. I would like to speak briefly and

which H.R. 7885 would authorize and today on this section of the bill.

Fourth. A greater appreciation of the some hard currencies from an internaA significant breakthrough in expand value of the free enterprise system in a tional lending agency such as AID. The ing the self-help, private enterprise fea- democracy where people work together cooperatives of Latin America have recture of our assistance program in Latin to promote their common ends rather ognized that their control of such a sysAmerica is made by new provisions in than organizing to oppose or destroy. tem would only be achieved to the extent that their own investment in such a sys- The Agency for International Develop- I wish to call the attention of my coltem warrants such control. The pro- ment has made extensive progress in de- leagues to a summary of the activities posed system contemplates the borrow- veloping a program for the establish- carried on in these vital areas in Latin ing described above over a period of 5 ment of a wide variety of self-sustaining America

America during the past fiscal year, years. It is anticipated that with a his- cooperative institutions. These include 1963. This provides a summary on detory of successful operations, IACFI credit unions, rural electric co-ops, hous-velopments in Latin America in the field would be able to borrow in Wall Street ing cooperatives, savings and loan asso- of public administration, similar to those and in Europe although probably at a ciations, marketing cooperatives, farm on land reform, tax reform, housing and higher interest rate than is paid by the supply cooperatives, transportation co- private enterprise which I include as U.S. Banks for Cooperatives.

operatives, and so forth. It has become appendices to my Alliance for Progress The Inter-American Institute in Wash- increasingly apparent that the ultimate

increasingly apparent that the ultimate speech delivered in the Senate earlier ington would generally discount loans success of these programs depends in this week. to Latin American cooperatives made large measure upon the development of I ask unanimous consent to have this by other institutions or participate in a proper financing mechanism. This summary printed in the RECORD. loans too large for other cooperative legislation offers a concrete step for the There being no objection, the sumfinance institutions and only occasion- immediate development of such an insti- mary was ordered to be printed in the ally lend directly to cooperatives. All tution.

RECORD, as follows: loans would be accompanied by appro- The report of the Committee on For- DEVELOPMENT ADMINISTRATION IN LATIN priate technical assistance measures. eign Relations very clearly indicates the AMERICA-SUMMARY OF ACTIVITIES, FISCAL National Cooperative Finance Insti- support which it gives to this proposal

YEAR 1963 tutes-Nacfi's—would be formed in many

I. INTRODUCTION by singling it out for special emphasis in countries with domestic capital while this bill. President Kennedy, David Bell,

This report highlights AID's activities in IACFI would provide technical assist- Administrator of the Agency for Inter

the field of development administration ance and discount privileges. There are national Development, and Teodoro

during the period July 1, 1962-June 30,

1963. Some of the more significant new appropriate cooperative financial insti- Moscoso, the U.S. Coordinator of the

activities are summarized first to show tutions in a few countries which could Alliance for Progress, have been em- changes and increases in the program during be made more effective by the establish- phasizing the importance of self-help fiscal year 1963. This is followed by a rement of IACFI.

measures and the role of private enter- view of activities initiated in earlier years The cooperative movement in Latin prise in developing nations. This legis- which, though limited, provided the indisAmerica through the Organization of Organization of lation can be made effective almos im

pensable base for this year's developments.

The long-term AID staff in the field fell the Cooperatives of America has en- mediately to carry out those great ob

to less than 40 in 14 countries and on redorsed the proposed plans for this sys- jectives. I am sure that I speak for all

jectives. I am sure that I speak for all gional assignments during the year, contem and have indicated a willingness to of us when I say that we shall look for- sistent with the total program shift to acundertake the obligations of participat- ward to this course of action.

celerated use of selected contractors and ing in such a system. The cooperatives AID IMPROVES PUBLIC ADMINISTRATION IN LATIN

other Federal agencies such as the Census in several countries are already taking

Bureau and the Internal Revenue Service.

AMERICA steps looking toward the establishment

During the year, OAS somewhat strength

Mr. President, every discussion of the of the Inter-American Cooperative Fi

ened its resources in the field of public Alliance for Progress eventually turns on finance and administration. The Developnance System. Action is already under

the subject of the quality of public ad- ment Administration Division maintained way in Chile, Peru, and Ecuador while ministration in Latin America. What- close day-to-day working relationships in the cooperative banks are already in being

ever area we discuss—agrarian reform, development and execution of programs to in Uruguay and Venezuela. Individual taxes, education, or other—the problems

assure that AID's activities complemented cooperatives have for some time been in getting moving hinge upon finding tionships

those of OAS. Similar informal working relaseeking adequate financing for projects good managers, well-conceived institu

were maintained with UNTAA

which has a limited public administration which they cannot initiate for the lack tions, and well-run programs. Such

program in Latin America. of a financing system. These include are the key to doing the public's business

II. NEW ACTIVITIES IN FISCAL YEAR 1963 food processing; livestock and fishery dein a reasonably efficient manner. We

A. Fiscal administration velopment; coffee, cacao, and banana

cannot afford the luxury of administramarketing and export cooperatives; con

1. The program to enlist the cooperation tive waste.

of the Internal Revenue Service in tax sumer co-op markets; fertilizer, feed,

Recognizing this, AID has given in- modernization in Latin America was deseed, and other farm supply cooperatives,

creasing attention to this area and in- veloped, an interagency agreement was and so forth.

stituted a number of programs in fiscal signed, and the program is in operation. New provisions in H.R. 7885 provid- year 1963 in Latin America. Success or

IRS has constituted 3-man Washinging for the expansion and growth of co- failure in the long run will hinge upon

ton foreign tax assistance staff and during operatives in Latin America attack one continuing and expanding this. In this

fiscal year 1963 made available 24 men for of the major ills afflicting Latin Ameri

service in 11 countries in Latin America. area we must promote rapid but realistic

2. The Latin America Tax Assistance Recan growth; namely, rural poverty. The

administrative reform. It is not easy to serve (LATAR) was established under AID use of local currencies along the lines

achieve quick and meaningful admin- financing and is now operational. By Sepprovided for in this legislation not only istrative change, but we cannot wait for tember, 25 IRS men will be in training for makes effective use of local currency any Latinized Hoover Commission to service in Latin America. The program proresources available to the U.S. Governget going. We must train sufficient

vides for 16 weeks of special training, inment but stimulates economic activities numbers of local leaders to develop both

cluding 8 weeks of Spanish, for men who which will tend to lessen the need for

will be assigned directly overseas or will be a nucleus of competence and a better U.S. Government loans and grants of

on call from their regular IRS positions to climate for reform. Such are the indis

meet the needs for tax administration addollars to Latin America.

pensable ingredients for significant ad- visors in Latin America. This cooperative financing system will ministrative improvement anywhere. 3. Comprehensive surveys were made by serve well the purposes of another great

The opportunities are limitless, AID/W organized teams of fiscal adminisinstitution which our Government is whether we look at the central man

tration in Peru and Ecuador and of tax adparticipating in. The social projects diagement functions such as budgeting Surveys of customs administration were

ministration in Guatemala and Honduras. vision of the American Institute for Free and accounting, the organization for Labor Development is carrying out the planning, statistical services, personnel

made in Chile, Ecuador, Guatemala, and

Peru. great task of developing a free and dem- and procurement practices, or whether

4. Following the fiscal survey, the first ocratic trade union movement. Those we look at functional fields such as pub- loan for administrative and fiscal reform was social projects rely almost exclusively lic works, agriculture, and education. It developed and approved by AID for Ecuador. upon the development of cooperatives is not only the public administrative sec- Work has been started on a contract between sponsored by free trade unions. The tion which needs attention. The private

the GOE and the Internal Revenue Service, sector is also important. Indeed it will loan, for modernization of Ecuadorian tax

the first of its type, to be financed through a AIFLD is supported by the U.S. business community and foundations, by the have to carry the greatest load in devel

administration. Some 50 Ecuadorian tax AFL-CIO, and by AID. oping Latin America.

auditors were trained in Quito by a USAID


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