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grain to the Russians. I was under the from Illinois [Mr. DERWINSKI) may ex- be permitted to revise and extend their impression the Russians were trying to tend his remarks at this point in the remarks. buy our wheat, not that we were trying RECORD and include extraneous matter. The SPEAKER pro tempore (Mr. LIBto sell them our wheat. There is a great The SPEAKER pro tempore. Is there ONATI). Is there objection to the redifference involved here. It would ap- objection to the request of the gentleman quest of the gentleman from Iowa ? pear the Russians have put us on the from Iowa?

There was no objection. defensive in this matter, in a position There was no objection. where we will eventually be asking them Mr. DERWINSKI. Mr. Speaker, I to take the wheat off our hands.

THE NEW WHEAT DEAL join my colleague, the gentleman from The lure of Russian gold has been Iowa, in expressing vigorous opposition The SPEAKER pro tempore. Under removed from the haggling room.

to the Kennedy administration decision previous order of the House, the gentleThe honest cost of our wheat is not to sell American wheat to the Soviet man from Wisconsin [Mr. LAIRD) is reca point the Russians consider relevant. Union.

ognized for 20 minutes. The profits of American vessels and It is my strong conviction that any Mr. LAIRD. Mr. Speaker, it has come longshoremen now appear as nothing aid to any Communist government to my attention that the Export-Import more than a hopeful promise.

serves to perpetuate its dictatorial con- Bank has decided to guarantee all comAmerican taxpayers should get ready trol over the people and does not pro- mercial credit extended by private comfor the news that the Russians received vide for their material or political well- mercial banks for purchase of U.S. farm a loan in order to buy our wheat. I being. Thus, we are acting in direct commodities by Communist countries. hope no one will be so rude as to recall contradiction to our historic support of Normal practice for the Export-Imthat the Russians now owe us over the principle of self-determination of port Bank is to guarantee no more than $10 billion—and they have made it peoples by bolstering their oppressive half the amounts due from foreigners. clear they have no intention of repaying Communist governments.

This normal practice applies to every those loans.

It has been clearly established that free world ally this country has. This is but another example of Rus- there will be no starvation in the Soviet Many of us in the Congress seriously sian confusion techniques at their best. Union if we refuse to cooperate with criticized our Government's decision to Time will tell just how confused we have the Communists' request for our wheat. approve a wheat sale to Communist become in the Odyssey of a Russian- Therefore, the argument that the deal countries. We felt that at least suffiAmerican wheat game.

should be consummated for humani- cient time should have been permitted tarian reasons certainly has no validity. prior to such an approval during which

The Soviet Union plans to continue the Congress could have made a thorSELLING WHEAT TO RUSSIA its exports of wheat to other coun- ough study of the feasibility of such a Mr. HOEVEN. Mr. Speaker, I ask tries, so it is obvious that the United sale.

This was not done. In apparent disunanimous consent that the gentleman States, by its sale of wheat to the Soviet from Pennsylvania [Mr. DAGUE] may ex

Union, is contributing to politically mo- regard of the Johnson Act and the Latta tend his remarks at this point in the tivated trade policies of the Commu- amendment, the executive branch went nists.

ahead with the approval. RECORD and include extraneous matter. The SPEAKER pro tempore. Is there

By this misguided deal, which is a The Latta amendment, in its loosest objection to the request of the gentleman symptom of the illness of appeasement construction, was at least a guideline set from Iowa? from which this administration is suf- down by the Congress. The President

chose to ignore it. There was no objection.

fering, we are also helping the Soviet Mr. DAGUE. Mr. Speaker, I am undictatorship to forestall the collapse of

In his press conference of October 9, the collective farms, the ineffectiveness the President stated his own guidelines qualifiedly opposed to the sale of U.S. wheat to Communist Russia. My oppoof which has been the major factor in to accompany the approved sale. He

said that the deal would be between the sition stems from the firm conviction the crop failure in the Soviet Union. that the purchase of wheat outside the

The American taxpayer is being Communists and private American merCommunist bloc is a move to their stra

forced by the administration to subsidize chants. He said that the wheat we sell

this infamous sale and the American would be carried in available American tegic advantage. As I read it, the law specifically forbids traffic with Russia shipowners are being given the choice of ships, supplemented by ships of other under Public Law 480, and I feel that drastically cutting their charges or los- countries, as required.

The President has now chosen to any attempt to circumvent that edict in ing the job of shipping our wheat to the

Communist countries. In spite of the ignore his own guidelines almost as the case of wheat would be completely President's specific requirement that the readily as he chooses to ignore congresreprehensible,

wheat be shipped in American bottoms, sional guidelines whenever they come As regards the sale of wheat or other the Commerce Department is now pres

into conflict with his own views on a strategic commodities to the U.S.S.R. by suring our shipowners to meet Soviet de- given matter. nations with whom we are allied, I would mands for lower shipping charges.

He said it would be a private deal. state as emphatically as I know how that continuation of such sales should auto

It would be far wiser and more morally Yet the Export-Import Bank, a U.S.

defensible for the United States to alle- agency, has mysteriously agreed to shatmatically cancel any aid we may be now

viate its balance-of-payments problems ter its own precedents and to guarantee providing the countries involved. Desery

up to 100 percent of the credit extended ing special condemnation, in my opin- by reducing foreign aid to Communist ion, is Canada's assistance to Cuba; and Yugoslavia and the left-leaning neutral by commercial banks to those American I think that forthright action by our Gov- countries we are now supporting than dealers who will carry out the transac

tion with the Communists. At present, ernment is indicated, including blockade by this direct support of the Soviet Goyof such traffic if necessary.

ernment in the form of the sale of wheat this guarantee has been extended to a As for the "bleeding hearts" who will

Mr. Speaker, I again protest this deal $6 million corn sale to Hungary. All

indications are that this same 100 perdefend the sale of wheat to the Soviets made by the present administration on moral and practical political and eco

cent guarantee will also be extended to on humanitarian grounds, I would sug- nomic grounds and urge that Congress the entire $250 million proposed and gest that Russia will be able adequately

the act to make sure that such a betrayal Government-approved deal with to feed her people if she will simply cut of both the American people and the

Communists. This goes far beyond even back on her military establishment, now captive peoples of communism will never

the most-favored-nation treatment we being maintained for aggressive puroccur again.

accord our allies. poses, and use the funds and personnel

At the same time-if not by definition, thus released for the increased produc

at least in actuality-the Export-Import tion of food and fiber.

Bank's action makes this not a private, GENERAL LEAVE TO REVISE AND

but a public and therefore a Government

EXTEND REMARKS SELLING WHEAT TO RUSSIA

deal. The risk which should accrue to

Mr. HOEVEN. Mr. Speaker, I ask the dealers themselves and to the comMr. HOEVEN. Mr. Speaker, I ask unanimous consent that those Members mercial banks which extend the credit unanimous consent that the gentleman who participated in the discussion may this risk has been nationalized.

If the Communists default, the Amer- an amendment if the rule permits which On October 31, 1963, the Treasury held ican taxpayer will pick up the entire tab. will make an increase in the debt limit $33 million of Federal debt obligations in Mr. Speaker, this makes no sense at unnecessary, simply by requiring that

unnecessary, simply by requiring that the exchange stabilization fund—see all, from any perspective. As a strict the outstanding public debt be properly

the outstanding public debt be properly “Daily Statement of the U.S. Treasury,” business deal, he who enters into a trans- counted.

October 31, 1963. This is not a large action expecting to make a profit, should GOVERNMENT BONDS THAT HAVE BEEN PAID amount, in terms of $307 billion Federal take upon his own shoulders some of SHOULD NOT BE INCLUDED IN NATIONAL DEBT debt; but this amount could well grow in the risk involved.

If we as individuals or as business

the months ahead, because of our pecuIn his press conference, the President's men paid off a debt we owed and got liar balance-of-payments problem and insistence that this would be a strictly back our canceled note or our canceled

the steps which may be necessary to private deal was obviously brought into mortgage, we would no longer count that carry on stabilization activities. the picture because the President was previous debt as debt which we still owe.

HIGHWAY TRUST FUND uncertain of his ground vis-a-vis exist- We would eliminate that former debt

Similarly, the Treasury held $465.4. ing statutes concerning this matter if from any accounting of our financial

million in the highway trust fund on it had been a Government deal. If the condition which we might give to Dun

October 31, 1963-same source as above. Government now chooses to assume the & Bradstreet, to a bank, or anyone else.

& Bradstreet, to a bank, or anyone else. True, these funds have been collected, entire risk, it would certainly and plainly It should be the same with the Federal

through gasoline taxes, for a special purseem to follow that the Government is a debt, but at present this is not the case.

pose—highway building—but they are major party to this transaction and the Certain Treasury bonds, notes, certifi

funds which belong to the general public, Congress should look deeply into the al- cates, and other evidence of indebted

not to some special set of claimants, and tered circumstances of this transaction. ness which the U.S. Government itself in my view these obligations should not Parenthetically, Mr. Speaker, it seems owns on behalf of the general public are

be counted as outstanding debt. They inconceivable that the Government of counted as outstanding debt. This is an have been paid for with the taxpayers the United States would find it possible irrational and misleading method of

money. and attempt to make palatable the fact accounting. that every time we make a concession DIFFERENT WAYS GOVERNMENT BONDS HELD BY

GOVERNMENT SECURITIES HELD BY FEDERAL RE

SERVE OPEN MARKET COMMITTEE HAVE BEEN to the Soviets, the quid pro quo we find

AGENCY

PAID ONCE ourselves accepting is another and graver Let me make clear that agencies of

Finally, a very large amount of Federal incident in Berlin. the Federal Government hold Federal

debt obligations belonging to the general I have heard reports that the admin- debt obligations under two entirely dis

public is held at all times by the Federal istration is now contemplating an tinct circumstances. In one circumagonizing reappraisal of its relations stance, Federal agencies hold Govern

Reserve System. On October 30, 1963, with the Soviet Union. Many of us in ment securities in certain trust accounts,

the amount of U.S. Government securi

ties which had been bought outright and the Congress requested such an appraisal where the agency is merely acting as held by the Federal Reserve was $32.4 before the test ban was ratified, before trustee, and for funds belonging to para joint moon shot was suggested— ticular segments of the population. Ex

billion, or more than 10 percent of the

total outstanding Federal debt, as outnaively, I might add—by our President, amples of these trust accounts are the before we agreed to bail our sworn unemployment compensation and the

standing Federal debt is presently enemy, the Soviet Union out of an agri- old age retirement funds; the civil sery

counted-see "Factors Affecting Bank

Reserves and Condition Statement of cultural mess, and before we established ice retirement funds; the railroad re

Federal Reserve Banks, Board of Govera meaningful and effective policy with tirement fund; postal savings deposits; respect to what we would demand as Federal Deposit Insurance Corporation

nors, Federal Reserve System,” Octo

ber 31, 1963. How can we as Members reciprocal concessions for our own gen- funds; Federal savings and loan insur

of Congress further condone making our erosity. ance funds, and so on. The general

constituents pay our debts more than Let us hope, Mr. Speaker, that after

public does not own the securities in 312 years of consistently bad guesses,

one time? Or to pay interest on debts these funds. The Government has

and interest that have been paid once? woefully inadequate analyses of Commerely invested the funds of some par

How have these debt obligations been munist intentions, and imperfectly de- ticular group who have entrusted the vised policies, the administration has funds to the Government. Government

acquired? For what purpose are they

held? Who owns them? And what disnow come to the point where it will deal securities held in such trust funds are with realities and not dreams.

position will finally be made of them? of course properly counted as outstand

These obligations consisting of Treasing public debt. They are quite properly GOVERNMENT DEBT BEING PAID counted as a part of the debt which is

ury bonds, bills, notes, certificates, and MORE THAN ONCE-A BILLION subject to the debt ceiling.

other interest-bearing Treasury obliga

tions have been purchased simply by DOLLARS A YEAR PAID TO FED

STABILIZATION FUND EXAMPLE

creating the money with which to buy ERAL RESERVE ON BONDS THAT There are, however, circumstances them. This is not as horrible as it may HAVE BEEN PAID ONCE, WITH IN- where the Government itself owns debt

where the Government itself owns debt sound; indeed, it is an essential part of TEREST-IF BONDS ALREADY obligations, not on behalf of any partic- the system used in all industrial naPAID ONE TIME ARE EXCLUDED ular segment of the population but on tions to provide the growth in the supply FROM NATIONAL DEBT THE BILL behalf of the general public. These ob

of money necessary to accommodate TO INCREASE NATIONAL DEBT ligations should not be counted as out

growths in population and even greater TO $315 BILLION UNNECESSARY standing debt. When the Secretary of

growths in economic transactions. The SPEAKER pro tempore. Under the Treasury takes the general funds

Money has to be created, because it does previous order of the House, the gentle of the Treasury, for example, and in

not come from heaven, and it does not man from Texas [Mr. PATMAN) is recog- vests them in Government debt obliga

grow on trees. nized for 30 minutes. tions these obligations have been paid

Under our Constitution the power to Mr. PATMAN. Mr. Speaker, I asked Mr. Speaker, I asked for by the general public, and should

create money is assigned to the Federal to be heard before the Rules Committee not be counted as outstanding debt.

Government and, more specifically, it is this morning on H.R. 8969, a bill to in- This is the case of Federal debt obliga- assigned to the Congress. This power to crease temporarily the public debt limit tions held by the Treasury in the ex

create money has been delegated to the to $315 billion.

change stabilization fund. The sole purpose of my appearance

Federal Reserve System and to the pri

The exchange stabilization fund repwas to request that when the Rules Com

vate commercial banks. The Federal resents funds which have been taken out Reserve System has been delegated the mittee reports a rule to consider H.R. resents funds which have been taken out 8969 it do so with an open rule, so that of the general fund of the Treasury and

responsibility for determining how much amendments to the bill may be offered in set aside in a special fund to be used as money shall be created and in circulathe House.

may be needed, to purchase foreign cur- tion at any one time, and also responsiDEBT LIMIT INCREASE UNNECESSARY rencies for the purpose of stabilizing the bility

bility for determining,

determining within wide It will be my purpose, when the bill exchange value of the dollar in terms of

exchange value of the dollar in terms of limits, what portion of the money supply reaches the floor of the House, to offer foreign currencies.

shall be created by the private banks

End of year

TIME

and what portion by the Federal Reserve the growth in the money supply, which cannot be sold, it cannot be voted, it canitself.

is defined to consist of demand deposits not be hypothecated or pledged to se

of the commercial banks, plus currency MONEY CREATED BY FEDERAL RESERVE AND

cure a loan, and it cannot share in the COMMERCIAL BANKS in circulation outside of banks.

profits of the System, except for a fixed Getting down to mechanics, the Fed

[In billions of dollars)

6-percent-interest payment on the ineral Reserve creates money in much the

vestment. And finally, the statute same way that private banks create

Federal

makes clear that if and when the System

Reserve Demand Currency money. It creates demand deposits to

is terminated, all of the assets of the

holdings deposits outside the account of the private banks which

of Govern- in commer- banks

System will go into the Treasury, excluare called bank reserves. When the Fed

ment obli- cial banks

sive of an amount necessary to pay the

gations eral Reserve finds it necessary to expand

stipulated 6-percent interest per annum bank reserves by, say, $1 billion, it does

on the so-called stock.
1929 1

0.5
22. 5

3.6 so simply by buying $1 billion of Govern

Over the years I have questioned many 1939.

2.5
29. 8

6.4 ment securities from the open market

1950.

20.7
92.3

25.4 officials of the Federal Reserve System1960.

27.0
116. 1

29.5 and paying for them by creating $1 bil

including the present Chairman of the 1962,

30.5
120.4

31.2 lion of bank reserves, credited to the ac

Federal Reserve Board and the past count of one or more private commercial 1 End of June 1929.

Chairman of the Federal Reserve Board, banks. This money created is high

Mr. Marriner Eccles—and all have testi

Since it is manifest that the Federal fied to the effect that the Federal Repowered dollars, which banks can use to

Reserves' holdings of Government secreate 10 additional dollars to loan or

serve banks are owned by the Federal curities must continue to increase in the invest on every high-powered dollar.

Government-general publicnot by the years ahead, we might ask why these seUnder present regulations of the Fed

curities are not canceled? They could private commercial banks—see samples eral Reserve, the money-creating pow

of testimony attached. be, because they will be held in perpeers are divided between the Federal Re

In summary, Mr. Speaker, the present tuity. In truth, the Fed merely holds serve and the private banks on an ap

method of counting as part of the outthem, draws the interest from the Treasproximate 1-to-10 basis. In other words, ury, spends all of this interest income it

standing public debt those debt obligawhen the Federal Reserve expands bank

tions which have been paid for by the cares to spend, then returns the rest back reserves by a billion dollars, this autoto the Treasury.

Government, and are thus owned by the matically entitles the private commercial

general public, is bad and misleading. It NINETY-NINE PERCENT OF EARNINGS OF FEDERAL banking systems to create $10 billion of

will cause difficulties, because the amount

RESERVE BANKS COMES FROM TAXPAYERS WHO new bank deposits. The private com

of such obligations owned by the Govern

HAVE PAID THE BONDS AND INTEREST ONE mercial banks may do this by purchasing

ment itself will necessarily grow, giving $10 billion of Government securities, by

the public an impression that the public

Last year the Federal Reserves' total purchasing private securities, or by mak

debt which is outstanding is growing a income was $1,049 millions. Of this ing loans to business and consumers, or

great deal faster than it actually is growamount, $1,039 millions, or better than ing. We owe the public a proper acby whatever mixture of loans and in

99 percent, came from interest payments counting of the public debt, and if we vestments they see fit to make.

from the Treasury, on its holdings of Now, we might ask, will the time ever Government obligations—the Treasury the public debt, it will not now be neces

give the public a proper accounting of come when the Federal Reserve will find

paid the System an average interest rate it appropriate to sell some substantial

sary to increase the debt ceiling and thus of 3.52 percent. From this income, the amount of its Government securities in

disturb the minds of a great many people Federal Reserve spent or otherwise disorder to contract the supply of money? posed of $250 million and returned the

who are properly concerned about the The answer is "no," because as a general

public debt. other $799 million to the Treasury. The rule the supply of money must be expeople are being compelled to pay a bil

QUOTATIONS FROM TESTIMONY ON OWNERSHIP panded by about 3 percent each year,

OF FEDERAL RESERVE ASSETS lion dollars a year interest on bonds that compounded, in order to keep up with have already been paid once. It is a

Mr. PATMAN. Now these 6,500 banks, they the growth of economic transactions subsidy with a vengeance.

have paid in 3 percent of their capital and which are effectuated with transactions

surplus to the Federal Reserve bank. IS THIS BEING CONTINUED TO PROTECT FEDERAL Mr. MARTIN. That is right. * * * Now it in money.

RESERVE IN ITS BACK-DOOR SPENDING? is not, and I am glad it is not, proprietary BANKS CREATE MONEY ON BASIS OF 10 TO 1

The Federal Reserve System is, we

interest on the part of the banks. (Wm. McC. Of course, the bank reserves which the might note, the biggest and most free

Martin, Jr., Chairman, Board of Governors of Federal Reserve has on its books are a

the Federal Reserve System, before the House wheeling back-door spending operation

Select Committee on Small Business, Nov. liability of the Federal Reserve to the ever conceived. It spends all the pub

21, 1957, p. 338.) commercial banks. Any commercial lic funds it cares to spend without so Mr. MARTIN. The banks through their stock bank caring to do so can draw out cur

much as a by your leave from Con- ownership, which you have rightly pointed rency, on a dollar-for-dollar basis, in ex

gress. It submits no budget; its expend- out a number of times, is not proprietorship, change for its reserves. But no bank itures are not in the President's budget;

is not ownership. (Chairman Martin before wishes to draw out any more currency

the House Banking and Currency Committee, and it is not even audited by the Genthan is absolutely necessary to accommo

July 31, 1957, p. 377.) eral Accounting Office or any other date its customers, because currency

Mr. PATMAN. Do you agree with Mr. Martin agency of the Government.

that the member banks do not own the draws no interest and, what is more im

GOVERNMENT OWNS FEDERAL RESERVE BANKS Federal Reserve banks, and have no claim portant, with each dollar of reserves the

to their assets or income other than the bank draws down by taking out currency,

I know that some people have an idea

interest payment on the so-called stock which that bank loses the power to create $10 of that the private commercial banks own

the member banks are required to subscribe demand deposits in exchange for $10

the Federal Reserve banks, and, there- to the Federal Reserve banks? worth of interest-bearing assets.

fore, own the assets of these banks, in- Mr. SZYMCZAK. That is correct. (M. s.

cluding their holdings of Government obEven so, the public's demand for "hand

Szymczak, member, Board of Governors, be

fore the House Select Committee on Small money," or currency, continues to grow

ligations. But this notion is completely
in error.

Business, Apr. 16, 1958, p. 416.) also. Coincidentally, the amount of Fed

The notion arises from the

Mr. MILLS. Not a proprietary interest in eral Reserve currency in circulation is fact that the member banks in the Fed

the sense that the ownership or the represenabout equal to the value of the Treasury eral Reserve System have been required

tation of stock ownership in the Federal to make a small investment in the Sysobligations it holds. So in one sense it

Reserve bank entitles the member banks could be said that by issuing currency, tem, totaling less than $400 million, in

to the type of ownership and control of rethe Federal Reserve has acquired inter

what has been incorrectly called stock. sources that is associated with stock ownerest-bearing Government obligations by This stock in no sense represents owner

ship in private enterprise. (Abbot L. Mills, issuing non-interest-bearing Govern

Jr., member, Board of Governors, before the Govern- ship, or a share of ownership, in the

House Select Committee on Small Business, ment obligations in exchange for them. System or the Federal Reserve banks. .

Apr. 17, 1958, p. 448.) The following table will illustrate the The statute of 1913 which set up the Fed

Mr. ROBERTSON. The commercial banks postwar growth in the Federal Reserve's eral Reserve System makes this clear. hold stock in the Federal Reserve banks, but holdings of Government securities and Under this statute the so-called stock all that represents, as far as I can see, is

membership in the Federal Reserve System leagues and to my countrymen, and in

all southeast Asia is at stake on this front of * * *. They have no proprietary interest in clude them here:

the anti-Communist struggle. Laos and the Federal System as such. (J.L. Robertson,

Cambodia, Thailand and Burma would be member, Board of Governors, before the [From the Washington Post, Nov. 6, 1963]

next. House Select Committee on Small Business, TURNOVER IN SAIGON: NEW TEAM PROMISING South Vietnam is the crucial place to turn Apr. 17, 1958, p. 466.)

START

back the Communist aggression by guerrilla Mr. SHEPARDSON. I think we have never

(By Roscoe Drummond)

warfare. The evidence is mounting that it contended that the central bank, the Federal

The rapidly moving events in Saigon

can be done. Reserve System, is owned by the commercial

revolt, and new government replacing Diem banks. On the contrary, we have taken every

in a span of 36 hours-are now sufficiently [From the Washington Post, Nov. 6, 1963] occasion in my knowledge to disabuse that clear to begin to answer the questions which

MATTER OF FACT: BLOOD ON OUR HANDS? idea. (Charles N. Shepardson, member, must deeply concern most Americans and

(By Joseph Alsop) Board of Governors, before the House Select Committee on Small Business, Apr. 17, 1958, many others.

The American role in the bloodstained but

Did the U.S. Government plot and procure purgative coup in South Vietnam is a subject p. 480.) the overthrow of the Diem regime?

demanding serious inquiry, if only because How will it affect the anti-Communist so much bosh is sure to be talked about it war?

unless the facts are understood. THE UNITED STATES DID NOT HAVE Why is the United States putting lives, Beginning, then, at the beginning, the

A ROLE IN THE SOUTH VIETNAM treasure ($1.5 million a day), and troops American Government was of course aware COUP (nearly 15,000 military advisers and tech

that the leaders of the Vietnamese Army were nicians) into this distant and bitter battle? talking with one another about ways and The SPEAKER pro tempore. Under The Communist press in Moscow and means of displacing President Ngo Dinh previous order of the House, the gentle- North Vietnam (where the Communist Viet- Diem. Indeed, there was no way to avoid man from Delaware (Mr. McDoWELL) is cong are in control) find it convenient to

being aware of this. recognized for 10 minutes.

answer the first question both ways. For As long as 2 months ago, when this reMr. McDOWELL. Mr. Speaker, havseveral weeks they have been berating the

porter was in Saigon, he was taken into the United States for supporting the repressive confidence of one of the most active oring just returned from South Vietnam,

Diem government and now berate the as a member of the special study group

ganizers of the coup. This member of the United States for bringing about its down- future junta listed the other generals who of the House Foreign Affairs Committee, fall.

had already placed themselves under the I can say with a certainty that the The candid and factual answer is this: leadership of Gen. Duong Van Minh; he said United States did not have a role in the Neither the CIA nor the Embassy in Saigon the coup would come soon; and he actually bloody South Vietnam coup.

nor any American official planned or plotted asked that the information be transmitted The fact of the matter is that both

the coup. It could not have been seriously at once to Ambassador Henry Cabot Lodge. President Diem and his powerful brother,

begun nor successfully completed unless the Long before the coup occurred, therefore,

circumstances within South Vietnam had it was quite clear there was trouble ahead. Ngo Dinh Nhu knew that a coup was in been ripe for revolt.

The expectation of early trouble in fact led the making, and, furthermore, they knew American policy unquestionably gave en- Secretary of Defense Robert McNamara to that they could take steps to improve couragement and incentive to the revolt. send his personal plane to Saigon, so that their government and thereby abort the The Kennedy administration welcomes the Ambassador Lodge could make his planned coup by cutting the ground out from outcome in the conviction that the repres- visit to Washington without the extra days under the leaders of the coup which was

sive policies of the Diem regime had lost it away from his post required for travel by the being prepared. They did not take such

the loyalty of many Vietnamese people, and commercial airlines.

that it was thereby dissipating the vast That simple fact in turn reveals another steps, even though the United States took

American aid in its war against the Com- aspect of the story. While aware that trouevery step and every means possible to munist guerrillas.

ble was brewing, the U.S. Government was in encourage them to do so.

President Kennedy, Secretary of State Dean no sense a party to the preparations for the As Joseph Alsop points out in the Rusk and influential Members of Congress coup. Otherwise, the plan would never have Washington Post of November 6:

made it evident that military assistance been made for this Lodge trip to Washing

could not continue indefinitely under these ton, which was so abruptly forestalled when Until the very eve of the coup, moreover, circumstances. Some reduction in aid was the coup took place. Ambassador Lodge continued his fruitless beginning to be carried out.

Until the very eve of the coup, moreover, effort to persuade President Diem to set his

This confronted the South Vietnamese Ambassador Lodge continued his fruitless house in order. His last attempt was made

military leaders, who unitedly joined in the effort to persuade President Diem to set his on Sunday, October 27, when Diem invited

anti-Diem revolt, with a point-of-no-return house in order. His last attempt was made Lodge to join him on a visit of inspection in decision. They either had to accept the con

on Sunday, October 27, when Diem invited the countryside.

tinuance of the Diem-Nhu regime with all Lodge to join him on a visit of inspection These are sad and horrible days for

its autocratic shortcomings or see the war in the countryside. this little country, on which the hopes

lost to the Communists for lack of Ameri- The long day with Diem gave the Ambas

can assistance. of so much of the free world rest for

sador the opportunity to discuss both the

The decision which Gen. Duong Van Minh state of affairs in Vietnam, and its effects on turning back the tide of communism in

and his associates made was that the fate of United States-Vietnamese relations, in deAsia.

their nation depended upon freeing it from tail and at great length. He offered 'a list of We must ask ourselves, as Roscoe the divisive Diem-Nhu regime.

modest but significant steps which Diem Drummond does in his column today:

What next? Obviously no one can be sure. could take to relax the tension in Saigon, Why are we doing all this-putting lives

Government by military junta can go in any and to improve the climate in Washington.

direction. But the beginnings are encourag- Every item on the Lodge list was categorically and treasure and troops into such a distant

ing. It has elevated Vice President Nguyen vetoed by Diem. battle? We are doing it because the safety

Ngoc Tho, a figurehead under Diem. It has Lodge then asked Diem whether he had of all southeast Asia is at stake on this front freed the Buddhist monks and other anti- any suggestions of his own about possible of the anti-Communist struggle. Laos and Communist critics of Diem. It has lifted means of escape from the impasse. Diem Cambodia, Thailand, and Burma would be the censorship and has promised elections. merely gave the Ambassador “a blank look next.

Undoubtedly the new government will step and changed the subject,” as Lodge subseSouth Vietnam is the crucial place to turn up the battle against the Vietcong. The quently reported. Yet on Monday Lodge back the Communist aggression-by-guerrilla- generals in the revolt are not neutralists. returned to the attack with Diem's intelliwarfare. The evidence is mounting that it They have no intention of negotiating away gent and flexible minister of defense, Nguyen can be done.

the independence of their country in some Dinh Thuan.

amorphous deal with the North Vietnamese Thuan, who described the program pressed I think we must give the new govern- Communists. They have the will to win. by Lodge on Diem as "extremely moderate," ment of Vietnam the same kind of power- There are two reasons why they will now promised to go to Diem and see whether ful military support which we gave the have more means of winning. First, the his persuasions would have any effect. His Diem-Nhu government it has replaced.

United States will have the incentive to lend first report was decidedly encouraging. But

the maximum aid because it will be effecIf we falter and are irresolute now we tively used. Secondly, many security forces,

the second report from Thuan, the next

day, was a gloomy, final negative. Diem's will undoubtedly sacrifice the keystone which could have been deployed to the fight- brother, the all-powerful and half-mad Ngo of the whole free world in Asia, and the ing areas, were hoarded by Diem for his own Dinh Nhu, had had his say in the interval. cost of stopping the Communist aggres- protection. They will now be available In short, there was no way to save Diem sion will escalate and skyrocket incalcuagainst the Communists.

and Nhu from themselves. Or rather, there

Why are we doing all this-putting Ilves lably. I commend the columns by Joseph

was only one way. It was indicated to and treasure and troops into such a distant Secretary McNamara just before he left Alsop and Roscoe Drummond to my col- battle? We are doing it because the safety of Vietnam by the able Englishman, Prof.

Patrick Honey, who is the unusual expert on (The following Members (at the re- H.R. 2754. An act for the relief of Mer-
Vietnam without a personal ax to grind. quest of Mr. Boggs) and to include ex- cedes Robinson Orr;
"You must understand," Honey
Honey told traneous matter:)

H.R. 2757. An act for the relief of Woo McNamara, “that the Diem regime will

Mr. CAREY.

You Lyn (also known as Hom You Fong surely be destroyed by a coup unless the

and Lyn Fong Y. Hom); U.S. Government makes a ringing reassertion

Mr. MATSUNAGA.

H.R. 2835. An act to clarify the status of of confidence in Diem and support for his

circuit and district judges retired from regugovernment as soon as you get back to

SENATE BILLS REFERRED

lar active service; Washington."

H.R. 2968. An act for the relief of KaziMcNamara gave Honey's judgment to Bills of the Senate of the following mierz Kurmas and Zdzislaw Kurmas; President Kennedy as his own judgment. titles were taken from the Speaker's H.R. 3384. An act for the relief of Lee Suey But no reassertion of confidence in the Diem

Jom (also known as Tommy Lee and Lee regime was possible, simply because the table and, under the rule, referred as

follows: U.S. Government had quite rightly lost con

Shue Chung);

H.R. 4145. An act for the relief of certain fidence in the Diem regime.

S. 1241. An act to require annual reports

individuals; Such are the facts. They constitute an instead of quarterly reports under the Re

H.R. 6097. An act for the relief of Dr. interesting moral problem. On the one construction Finance Corporation Liquida

Pedro B. Montemayor, Jr.; hand, the U.S. Government had foreknowl. tion Act; to the Committee on Banking and

H.R. 6260. An act for the relief of Wai Chan edge that a coup was being considered. In Currency. addition, the U.S. Government could have S. 1686. An act to amend section 375 of

Cheng Liu; forestalled the coup-by stultifying itself. title 28 of the United States Code, relating

H.R. 6500. An act to authorize certain conBut the U.S. Government refused to stultify to the annuities of widows of Supreme Court

struction at military installations, and for itself. Diem refused to put his house in Justices; to the Committee on the Judiciary.

other purposes; and order. And so the coup took place.

S. 2228. An act to change the requirements

H.J. Res. 626. Joint resolution granting the for the annual meeting date for national

consent of Congress to the establishment of banks; to the Committee on Banking and

an interstate school district by Hanover, N.H., LEAVE OF ABSENCE Currency.

and Norwich, Vt., and to an agreement beBy unanimous consent, leave of ab

tween Hanover School District, New Hamp

shire, and Norwich Town School District, sence was granted to:

ENROLLED BILLS SIGNED

Vermont.
Mr. BATES (at the request of Mr.
PRICE), on account of official business. Mr. BURLESON, from the Committee
Mr. PIRNIE (at the request of Mr. HAL- on House Administration, reported that

ADJOURNMENT LECK), for today, and for the balance of that committee had examined and found Mr. WAGGONNER. Mr. Speaker, I the week, on account of official business truly enrolled bills of the House of the move that the House do now adjourn. as a member of the Committee on Armed following titles, which were thereupon The motion was agreed to; accordingly Services. signed by the Speaker:

(at 4 o'clock and 56 minutes p.m.), unMr. HOLIFIELD (at the request of Mr. H.R. 7405. An act to amend the Bretton der its previous order, the House adPRICE), on account of official business. Woods Agreements Act to authorize the U.S. journed until tomorrow, Thursday, NoMr. HOSMER (at the request of Mr. Governor of the International Bank for Re

vember 7, 1963, at 11 o'clock a.m. PRICE), on account of official business. construction and Development to vote for Mr. ANDERSON (at the request of Mr.

an increase in the Bank's authorized capital

stock; and PRICE), on account of official business.

EXECUTIVE COMMUNICATIONS, H.R. 8821. An act to revise the provisions Mr. RIVERS of South Carolina, for Noof law relating to the methods by which

ETC. vember 6, 1963, through November 15, amounts made available to the States pursu- Under clause 2 of rule XXIV, execu1963, on account of being a delegate to ant to the Temporary Unemployment com

tive communications were taken from the NATO Parliamentarians Confer- pensation Act of 1958 and title XII of the

the Speaker's table and referred as folence. Social Security Act are to be restored to the

lows: Mr. HARDY (at the request of Mr.

Treasury. ALBERT), for today, November 6, 1963,

1354. A letter from the Administrative As

sistant Secretary of the Treasury, transmiton account of death in the family. SENATE ENROLLED BILLS SIGNED ting a list of negotiated purchases and con

tracts made by the Coast Guard since May The SPEAKER announced his signa- 19, 1963, pursuant to section 2304e of title SPECIAL ORDERS GRANTED ture to enrolled bills of the Senate of the

10, United States Code; to the Committee By unanimous consent, permission to following titles:

on Armed Services. address the House, following the legisla

S. 876. An act to authorize the Adminis- 1355. A letter from the Comptroller Gentive program and any special orders trator of General Services to convey certain eral of the United States, transmitting a heretofore entered, was granted to: lands in Prince Georges County, Md., to the report on the unsatisfactory condition of Mr. WILSON of Indiana, for 15 minutes, American National Red Cross; and

combat vehicles and equipment in the 3d on Tuesday next.

S. 1201. An act for the relief of Dr. James Marine Division (Reinforced), Okinawa, U.S. T. Maddux.

Marine Corps, Department of the Navy; to Mr. WILSON of Indiana, for 15 min

the Committee on Government Operations. utes, on Wednesday next.

1356. A letter from the Deputy Director, Mr. LAIRD for 20 minutes, today, and to BILLS AND JOINT RESOLUTION PRE

Bureau of the Budget, Executive Office of revise and extend his remarks.

SENTED TO THE PRESIDENT

the President, transmitting a draft of a proMr. UTT, for 45 minutes, on November

posed bill entitled "A bill to provide uniform 7.

Mr. BURLESON, from the Committee policies with respect to recreation and fish Mr. PATMAN, for 30 minutes, today, to on House Administration, reported that and wildlife benefits and costs of Federal revise and extend his remarks and to that committee did on November 5, 1963, multiple-purpose water resource projects,

and to provide the Secretary of the Interior include extraneous matter. present to the President, for his ap

with authority for recreation development Mr. SCHADEBERG (at the request of Mr. proval, bills and a joint resolution of

of projects under his control”; to the ComREIFEL), for 60 minutes, on Thursday, the House of the following titles:

mittee on Interior and Insular Affairs. November 7, 1963.

H.R. 1049. An act to amend sections 334, 367, and 369 of the Bankruptcy Act (11

U.S.C. 734, 767, 769) and to add a new sec- REPORTS OF COMMITTEES ON PUBEXTENSION OF REMARKS tion 355 so as to require claims to be filed

LIC BILLS AND RESOLUTIONS By unanimous consent, permission to

and to limit the time within which claims extend remarks in the CONGRESSIONAL

may be filed in chapter XI (arrangement) Under clause 2 of rule XIII, reports

proceedings to the time prescribed by section of committees were delivered to the Clerk RECORD, or to revise and extend remarks,

57n of the Bankruptcy Act (11 U.S.C. 93n); for printing and reference to the proper was granted to:

H.R. 1311. An act for the relief of Jolan

calendar, as follows: Mr. FINO.

Berczeller;
H.R. 1345. An act for the relief of Peter

Mr. HÉBERT: Committee on Armed Serv-
Mr. STAEBLER.
Carson;

ices. H.R. 2512. A bill to clarify the status of (The following Member (at the re

H.R. 2260. An act for the relief of Mrs. members of the National Guard while atquest of Mr. REIFEL) and to include ex- Rozsi Neuman;

tending or instructing at National Guard traneous matter:)

H.R. 2445. An act for the relief of Mrs. schools established under the authority of Mr. DOLE. Barbara Ray Van Olphen;

the Secretary of the Army or Secretary of

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