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ingly beneficial.

Where they have been grettably, that the program was allowed be a fact. Furthermore, if we go to the made a part of the permanent planning of to die in 1957. My hopes are rather House with a conference situation bethe city, they have been most successful. poignant that the program will be re- tween $3.7 billion and $3.5 billion, SenaWhere temporary, they sometimes have failed. Good maintenance is necessary.

established in Ohio, because if there is tors know as well as I do where the comA successful program was carried out in anything we need, it is covering the promise will come. But it is up to the Spartanburg, S.C., a city of 45,000 popula- ground with vegetation and trees at a Senate to work its will. It can have it tion, in 1962. Banks, industrial firms, time when concrete seems to be the cov- any way it wants it. The Senator from and retail firms cooperated with the Men's ering everywhere.

Oregon, of course, will continue to exerGarden Club, the sponsor of the project. In

cise his parliamentary rights. various projects there have been planted:

The amendment before the Senate is 210,000 bulbs, 200,000 azaleas, 1,600 rose bushes, 50,000 pansies, and 6,000 petunias. AMENDMENT OF FOREIGN ASSIST- one which the Senator from Idaho (Mr. Some of the plants are in a garden in which


CHURCH) and the senior Senator from citizens can choose labeled varieties for their

Oregon offer on its merits. We also ac

The Senate resumed the consideration cept the House figure, which is $380 milhome grounds. In North Carolina, Charlotte and Winston

of the bill (H.R. 7885) to amend further lion. Salem have planted roses and trees in ex

the Foreign Assistance Act of 1961, as Unless some other Senator wishes to pressway medians. Greensboro has ap- amended, and for other purposes.

speak, I intend to suggest the absence of pointed a city beautification coordinator. Mr. MORSE. Mr. President, on be- a quorum to bring the Senator from

A Plant America Award for landscaping half of myself, the Senator from Idaho Idaho to the Chamber, for he desires to was presented in 1962 to Mayor Melvin T. [Mr. CHURCH), and the Senator from speak on the amendment. He is on his Matlock for the town of St. James, Mo. Louisiana [Mr. ELLENDER), I call up my way to the Senate Chamber at present. Many local trees had lost their vigor in an

amendment No 256 to the committee Mr. LAUSCHE. Mr. President, will extended drought. The citizens, helped by

substitute. the James Foundation, planted 4,000 sweet

the Senator withhold his suggestion? gum, flowering crabapple, and holly trees.

The PRESIDING OFFICER. The Mr. MORSE. I am glad to yield the These plantings gave this small town new amendment to the amendment will be floor. beauty and new spirit. Townspeople talk stated.

Mr. LAUSCHE. I would not venture about “the new St. James" and plan to de- The LEGISLATIVE CLERK. On page 40, to speak, except that the Senator from velop a three-block-long strip in the line 5 in the committee amendment, it is Idaho is coming to the floor of the Senate. center of town into a central plaza, to be proposed, in lieu of “$400,000,000” to in- Mr. MORSE. I yield the floor. planted with grass, shrubs, and trees.

sert "$380,000,000". Various community projects have been

Mr. MORSE. Mr. President, I ask for taken up at times, as recommended in the

UNESCO AND NATIONALISM plant America program, such as establish- the yeas and nays on the amendment.

The yeas and nays were ordered.

Mr. LAUSCHE. ment of community gardens; street tree

Mr. President, I have plantings; landscaping and planting around Mr. MORSE. Mr. President, the col

a letter from a constituent pointing out public buildings, including airports; plant- loquy this afternoon will show that the the context of a resolution adopted by ings around tourist accommodations, such amendment is the one which the Sena- UNESCO. The constituent states that as gasoline stations and motels and hotels; tor from Idaho (Mr. CHURCH) suggested UNESCO Publication No. 356 makes the plantings of highway entrances to the community; developing local parks; cleanup and make a $50 million cut in supporting asthat I consider in case my proposal to

following statement:

As long as a child breathes the poisoned planting of the banks of local streams; establishment of community forests for recsistance were defeated. The Senator ad

air of nationalism, education in world mindreation; and the planting of flowering vised me that he would like to join me edness can only produce rather precarious

results. It is frequently the family that plants, or trees, in order to make the city in the amendment after the vote on the

infects the child with extreme nationalism. or town known for spectacular azalea, rose, proposed $50 million cut.

The school should use means to combat dogwood, lilac, flowering crabapple, cherry, The amendment would cut the sup- family attitudes that favor Jingoism. We or similar plantings.

porting assistance program $20 million, shall presently recognize in nationalism the As every municipality grows, a long-range to the House figure. It would be an im- major obstacle to development of world program for planting and beautification of

mindedness and world peace. land, including acquisition of new park portant $20 million saving. It would be lands, becomes necessary.

an important saving from the standpoint That statement is contained in a docuPlanting America is an extremely reward of the merits of the amendment itself in

ment issued by UNESCO. I assume that ing goal for all-individual, community, regard to the foreign aid program. We UNESCO has forwarded to the United State, and Nation. With needed and wide- ought to be willing to take $20 million Nations that fantastic conclusion which spread cooperation, our country almost out of that bloated program, for it is it reached about the evil to the people everywhere can be made to "sing with a highly inflated program.

of the world caused by persons being beauty."

In my judgment, it is very much in taught to be nationalists. I suppose that Mr. LAUSCHE. Mr. President, I ap- the interest of the taxpayers of this when the suggestion comes before the preciate very much the statements made country to take the House figure of $380 United Nations it will not be adopted. by the Senator from Wisconsin in calling million, but it is important also from the I am sure that if it ever came before the attention to the article beginning on standpoint of the parliamentary situa- Foreign Relations Committee or the Senpage 552 of the Agricultural Yearbook. tion in the Senate in regard to which ate, the proposal would be vigorously reIt describes a program adopted in Ohio conversations are still in progress. The jected.

jected. However, I feel that Senators in 1953. The program was named “Plant road ahead to a final vote on the bill and Representatives ought to be aca Tree in 1953, the Sesquicentennial can be a very long one. We shall do our

can be a very long one. We shall do our quainted with what UNESCO advocates. Year of Ohio.” It is a good program, best to make a fairly substantial cut in It tells the people of the United States, and it would be well if it were followed the bill. But, as I have said before, the "Do not teach your children to be pain many other States, too.

Senate should try to take another $40 triotic or nationalistic. Teach them to In that year of the Ohio sesquicenten- million out of the bill and then devote its be internationally minded, because with nial celebration, there were planted in attention to policy changes in the bill. national mindedness there will never be Ohio 22 million forest pine seedlings and That is the position of the senior Sena world peace.” 3 million ornamental trees. They were tor from Oregon, although he cannot I wish to offer only one word of advice planted without expense to anyone, ex- speak for others, and would not purport to these modern, sophisticated, socialcept the very low price charged for the to do so. But so far as my money amend- istically minded advisers. I do not care seedlings which were delivered.

ments are concerned, I would not be how many resolutions are adopted by The program was followed in 1954, offering them, but I would be free to vote UNESCO nor what the United Nations 1955, and 1956. In each year the plant- for any that any other Senator would does, or what the Congress does. The ing of grasses, flowers, shrubs, trees, and offer, if some were offered.

nationalistic and patriotic attitude in legumes was encouraged through a cen- We must face the fact that there is the hearts of Americans and their feeltrally directed program, followed iden- not a chance, in my opinion, of obtaining

not a chance, in my opinion, of obtaining ings toward their country will not be tically in each of the 88 counties of the a final appropriation of more than $3 extinguished. State. In each of those years more than billion for foreign aid. The administra- I have asked the Foreign Relations 20 million trees were planted. I make

I make tion forces do not like to face that pros- Committee to check into the actual sitthe statement, not critically, but re- pect, but I think they will discover it to uation as it prevails in UNESCO, to find

out what nations voted for the resolu- Mr. CHURCH. That is correct. This


Smith tion, and whether our country subscribed feature of the bill lies outside the so


Saltonstall Sparkman

Williams, N.J. to this policy. Later, I shall speak again called "powerhouse” amendment, which Neuberger Smathers on this subject. involved a cut of $300 million in military

NOT VOTING-8 assistance. This amendment would ef


Jordan, N.C. Walters fect a somewhat proportionate cut in Curtis AMENDMENT OF FOREIGN ASSIST

Long, La.

Young, N. Dak. military support, which would be con- Engle


sistent with the action already taken So the amendment offered by Mr. The Senate resumed the consideration with respect to military assistance. This MORSE, for himself and other Senators, to of the bill (H.R. 7885) to amend further is still another reason why adoption of the committee amendment in the nature the Foreign Assistance Act of 1961, as the amendment would result in a better of a substitute, as amended, was agreed amended, and for other purposes. balanced program, overall.

to. Mr. CHURCH. Mr. President, I am The PRESIDING OFFICER.

. The

Mr. MORSE. Mr. President, I move pleased to join in cosponsorship of the question is on agreeing to the amend- to reconsider the vote by which the pending amendment, which would cut ment offered by the Senator from Oregon amendment was agreed to. $20 million from the military support [Mr. MORSE), for himself, the Senator Mr. CHURCH. Mr. President, I move feature of the foreign aid bill. The ef- from Idaho (Mr. CHURCH], and the Sen- to lay that motion on the table. fect of the amendment would be to re- ator from Louisiana (Mr. ELLENDER), to The motion to lay on the table was duce the committee figure to that al- the committee amendment in the nature agreed to. ready approved by the House. of a substitute, as amended. On this

Mr. HICKENLOOPER obtained the As the Senator from Oregon knows, question the yeas and nays have been floor. I was unable to support his earlier ordered, and the clerk will call the roll.

Mr. ELLENDER. Mr. President, will amendment because I felt that this fea- The legislative clerk called the roll.

the Senator yield so that I may modify ture of the bill should not be cut below Mr. HUMPHREY. I announce that my amendment? the level already approved by the other the Senator from North Carolina [Mr. Mr. HICKENLOOPER. Mr. President, body. However, I feel military support- JORDAN), the Senator from Louisiana I ask unanimous consent that I may ing assistance is the best place to effect [Mr. LONG), the Senator from Mississip- yield to the Senator from Louisiana for a further cut from the Senate commit- pi (Mr. STENNIS], and the Senator from the purpose of having his amendment tee figure, because it is in connection Tennessee (Mr. WALTERS] are absent laid before the Senate, without losing with military support that we are ex- on official business.

my right to the floor. tending aid to those countries which I also announce that the Senator from

The PRESIDING OFFICER. Withget the lion's share of American aid, California [Mr. ENGLE] is absent because

California (Mr. ENGLE] is absent because out objection, it is so ordered. countries which, in my judgment, are of illness.

Mr. ELLENDER. Mr. President, I getting a disproportionately large slice I further announce that, if present and call up my amendment No. 244. I ask of the American aid melon. I believe voting, the Senator from North Carolina to modify the amendment in line 6, page the $20 million cut can easily be made, [Mr. JORDAN], the Senator from Louisi- 1, by changing the figure “1963” to without impairing the aid going to any ana (Mr. LONG), the Senator from Mis- "1964." of these countries. I also believe that if sissippi [Mr. STENNIS], the Senator from

The PRESIDING OFFICER. The the Senate should approve this amend- Tennessee [Mr WALTERS], and the Sen- Senator has a right to modify his ment, it would be taking a step toward ator from California [Mr. ENGLE] would amendment. resolving some of the difficulties, some each vote "yea."

Mr. ELLENDER. Mr. President, I ask of the barriers still to be surmounted if Mr. KUCHEL. I announce that the for the yeas and nays on my amendment. we are to bring the bill to a final vote.

Senator from Nebraska [Mr. CURTIS] is The PRESIDING OFFICER. The Adoption of the amendment would ex- absent on official business.

amendment of the Senator from Louisipedite the resolution of further dif

The Senator from Kentucky [Mr. ana, as modified, to the committee subficulties and help Senators to reach an

COOPER) and the Senator from North stitute, as amended, will first be stated. early vote on a measure which has now

Dakota [Mr. YOUNG] are detained on The LEGISLATIVE CLERK. It is proposed, been debated for nearly 242 weeks. official business.

on page 41, in the committee substitute For these reasons, I hope Senators will

On this vote, the Senator from Ne- between lines 8 and 9, to insert the folsee fit to join in support of the amend

braska (Mr. CURTIS] is paired with the lowing: ment.

Senator from Kentucky [Mr. COOPER). Mr. PROXMIRE. Mr. President, will

(d) SEC. 512. RESTRICTIONS ON MILITARY If present and voting, the Senator from AID TO AFRICA.—(a) Notwithstanding the the Senator yield?

Nebraska would vote “yea," and the Sen- provisions of section 614(a) of this Act, the Mr. CHURCH. I yield.

ator from Kentucky would vote "nay." value of grant programs of defense articles Mr. PROXMIRE. I should like to ask

The result was announced-yeas 51, thority contained in this part other than

for African Republics, pursuant to any authe distinguished Senator from Idaho, as cosponsor of the amendment, if the pronays 41, as follows:

section 507, in any fiscal year beginning with posed reduction in supporting assistance

[No. 231 Leg.]

fiscal year 1964, shall not exceed $25,000,000. would bring the level of supporting as


(b) Internal security requirements shall sistance in the bill more closely in pro

Goldwater Nelson

not, unless the President determines otherportion to the military assistance reducBartlett Gruening Pearson

wise and promptly reports such determina-

tion to the Senate Committee on Foreign tion than otherwise? As I understand, Bennett Holland Prouty

Relations and to the Speaker of the House the committee recommendation for mili- Bible


of Representatives, be the basis for military tary assistance has been reduced from Burdick Jackson Randolph Byrd, Va. Johnston Ribicoff

assistance programs for African Republics. $1.3 billion to $1 billion.


Jordan, Idaho Robertson Mr. CHURCH. The Senator is cor- Carlson

Long, Mo.

Mr. ELLENDER. Mr. President, I ask

Russell rect.

Magnuson Simpson

for the yeas and nays on my amendment. Mr. PROXMIRE. The amendment, I

McClellan Symington

The yeas and nays were ordered.

McGovern Talmadge take it, would reduce the supporting as- Dominick McIntyre Thurmond

Mr. HICKENLOOPER. Mr. Presisistance amount closer to that same Eastland Mechem Tower

dent, I should like to offer a few comEdmondson Miller

Williams, Del. ratio. I assume that the administra

ments on recent developments in ArEllender Morse

Yarborough tion and the committee computed some Ervin

Young, Ohio

gentina, and I select this country for two kind of relationship. As I understand


reasons. First, I think it is generally supporting assistance, it is to provide


agreed that Argentina has probably the economic assistance to countries suffer- Anderson Fulbright Kennedy

best potential for development into a ing under a heavy burden of armaments,


stable and self-sufficient free country in

Lausche to keep them from being crushed under Brewster

its part of the world. Hartke

Mansfield the burden. If we reduce military as- Byrd, W. Va. Hayden


Mr. MORSE, Mr. President, the Sensistance, it makes sense to reduce it in Case

Hickenlooper McGee

ator is delivering a very important proportion to the military support. Is


Humphrey McNamara

speech. I would like to have the Senate that not correct?

Douglas Javits


hear it.

The PRESIDING OFFICER. The event, petroleum production had been dollar shot in the arm to a country we Senate will be in order.

built up gradually to 36 million barrels want to help, but which did not have to Mr. HICKENLOOPER. I may say a year, against imports which had come out of U.S. foreign aid, the Interparenthetically that the general princi- climbed to 65 million barrels, as I have national Monetary Fund, the World ples which I shall attempt to develop in noted.

Bank, or any other of the many organimy remarks apply to any other countries In the 4 years following the time the zations to which we so largely conin Latin America which are engaging in Argentine Government opened the doors

tribute. or planning to engage in expropriation to assistance from private enterprise, the One could be pardoned for assuming of American property, and to any coun- production of oil nearly tripled, while that the Argentine Government would tries in any other part of the world which the amount the country has to import also recognize the magnitude of this are engaging in or planning to engage in has been reduced by roughly 70 percent. contribution to the welfare of its people. the expropriation of American property. In 1962, production had reached nearly Unfortunately, this does not appear to be

Argentina has many advantages not 100 million barrels, while imports had the case. There is now a new governgenerally shared by most other South shrunk to less than 20 million.

ment in office in Argentina, and one of American countries, among which are a I believe when we get the accurate its major articles of political faith seems highly literate population which is pre- figure at the end of 1963, it will be even to be a determination to abrogate the dominantly European in stock, the ab- more startling. In terms of foreign ex- contracts or to nullify them to use their sence of vast land reform problems, plus change, Argentina's expenditures for

own language, negotiated by the previthe possession of natural resources which buying petroleum or oil products were cut

ous government with the U.S. oil comare considerable.

from $220 million a year to $75 million, panies. My second reason for selecting Argen- and the goal of self-sufficiency was in While it is perhaps not too difficult to tina is that what is happening there has sight. There was even talk of an export- appreciate the political charm of sloa direct relationship to some of the dif- able surplus.

ganeering about “throwing out Yankee ficulties our foreign aid efforts are fac- Behind this tremendous accomplish

imperialists" during a Latin-American ing in other areas. ment lie some interesting facts. In gen

election campaign, it is very hard indeed On the basis of such measurements as eral terms, what it took to make the job

to discern any semblance of rationality

in such an action in this instance. per capita gross national product, num- possible was a combination of capital, ber of telephones and radios, miles of technology, and efficiency-in all of practical terms, this would amount to a

frontal attack on the only really sound railroads and highways and the like, which the Argentine Government had

and hopeful economic development that Argentina is already one of the most been lacking. These key elements were

has occurred in that country in the last highly civilized and advanced countries supplied by American oil companies, in

decade. in South America. Its major challenge competition against each other, who is to achieve stability of government and came in, negotiated contracts running up

The reasons expressed by the new

government for this extraordinary proto put into practice sound economic pol- to 40 years, and proceeded to supply the

posal have been rather nebulous thus icies which can eliminate the effects of money, personnel, equipment, and tech

far, consisting mainly of charges that years of mismanagement, inflation, a niques which turned the tide.

the contracts are illegal and unecowasting of assets, decline of agriculture, To date, these companies have investand deficits both in its budget and its ed an estimated $300 million in Ar

nomic. The only argument which the

advanced regarding balance of payments.

government has gentina since 1958. Their experiences

their legality, to my knowledge, is that The plight of the Government-run have varied. Several companies have

the contracts were not submitted to the railroads provides a good example of the spent close to $50 million in largely un

Argentine Congress for ratification. kind of economic chaos which has been successful exploration efforts. Another

While I am no expert on Argentine allowed to develop. The volume of company, which has developed produc

constitutional procedure, I cannot help freight carried has fallen from 60 mil- tion, brought in some $60 million in capi

but be impressed by the logic of some of lion tons in 1942 to less than 30 million tal and reinvested another $40 million

the comments which the oil companies tons; yet in the same period, the num- from the sale of the oil in further ex

have made in this regard. As they point ber of railroad workers has climbed from ploration and development activities. In

out, the agreements merely put them in 90,000 to over 225,000. The result is an general terms, these companies have con

the position of hired contractors. They annual deficit of some $300 million which tinued to invest money in Argentina, the Government is forced to cover. without any significant return thus far.

have engaged to spend a good deal of Such examples can be found in nearly

This kind of confidence in the coun

money, time, and effort in trying to find

oil—but any oil found becomes autoevery sector of the economy. In fact, try's future has also bred confidence. In

matically the property of the governover recent years there has been only one addition to the direct investment in ex

ment. The companies do not have title bright spot of any consequence in the ploration and development, there has

to it. They cannot export it. All they whole picture, and this is in the petro- been the predictable economic fallout in

can do with it is deliver it to the governleum industry. For years, imports of oil other areas, bringing additional outside

ment at a previously agreed upon price. had been steadily rising, in spite of the investment in transport, refining facili

Both legally, and in effect, they are simfact that there is oil within the country. ties, and petrochemicals—which to

ply contractors hired by the state oil By 1958, Argentina's total annual oil gether have been estimated at close to

agency to help do a job which that production amounted to only 36 million another $100 million, added to the econ

agency had neither the capital nor the barrels, and the nation was forced to im- omy.

ability to do itself. port some 65 million barrels to meet its If we add to this the further stimu

If the state oil agency has to get the needs. Oil was in fact the largest import lation to the economy in terms of royal- approval of congress to hire a contractor, item, and cost roughly the Argentines ties to the provinces for oil and gas

then presumably the state-run railroad $220 million a year in foreign exchange. produced within their territories, plus would have to get congressional ap

Looking back over the painful history the very basic fact that the oil industry proval to sign a contract to repair preceeding them, the Government at that has provided a growing number of jobs

freight cars. The oil companies assert time decided that a different approach for nationals over a period in which near- that there is no such precedent in Ar

ly every other segment of the Argentine gentine law, or anywhere else for that century, the control of oil operations had economy has been stagnant, we recog

matter, so far as anyone knows, and I been in Government hands. Foreign cap- nize that here is a very substantial con- find this quite believable. Any country ital and experience had been largely ex- tribution to the development of the which operated along these lines would cluded. But faced with such a phenom- country.

have to keep its congress in session 24 enal deficit in the balance of payments This has been done with private en- hours a day. from a single source, the Argentine Goy- terprise, private investment, and pri- Aside from this is the interesting fact ernment decided to try a new approach. vate venture.

that everyone accepted the contracts as It invited outside capital and assist- I should note that it has also been a legal and binding, and both parties atance to supplement the state's own ef- real contribution to the pocketbook of tempted to live up to their terms for forts, and the results have been dramatic. the American taxpayer, since here is about 5 years, until a new government In the long decades preceeding this something approaching a half-million come in. I say "attempted to live up


to their terms." The U.S. companies When we add to these considerations I have no quarrel with this objective; actually overfulfilled their contractual the fact that, at the end of the contracts, I support it. But at times it is hard to obligations. They drilled more wells and the Government will receive free of see how to go about it. Take the case in found more oil than even the Govern- charge all permanent facilities installed point. Here is a country which is emergment had hoped at the time the agree by the companies—including pipelines ing from the shadow of years of dictatoments were made. While the country is and other expensive installations—it is rial rule which left a legacy of bankstill not self-sufficient in oil, it has got- perplexing, to say the least, to find that ruptcy and economic decline. The Arten a good deal closer than anticipated Government calling the contracts un- gentine people apparently want stability in such a short period. economic.

and economic growth, under an elected The Argentine Government's perform- It is also appropriate to wonder what government. Since these are goals which ance is not quite so good, not so much lies ahead. In order to find and produce we support, we have been trying to assist because it did not try but because of the quantity of petroleum required to in this undertaking, with funds exacted the general fiscal chaos which has exmeet Argentina's growing needs over the from the American taxpayer

and isted within the Government. The state next 9 years, it is estimated that an in- through freely made private investment. oil agency, to which the U.S. producing vestment of some $1.7 billion will be re

But developments such as those in recompanies are obliged to deliver the oil, quired. This is an average of nearly gard to the oil contracts are enough to has not been able to pay for the oil. It $200 million a year, and it would be in- give anyone pause. So far as foreign aid is currently behind in its payments to teresting to know where a deficit-ridden is concerned, we must recognize that we the tune of tens of millions of dollars. government and a bankrupt state oil

are dealing with a sovereign government, One American oil company alone is agency would propose to get capital and that it is neither proper nor desiraowed more than $28 million for oil it funds on this order, particularly if they ble on our part to presume to tell that has produced with its own capital and pursue their presently announced course.

government how to conduct its affairs. know-how, and has delivered it to the

Abrogation of the oil contracts would,

When such a government proposes to Argentine Government agency. It is to a very considerable extent, succeed follow a course, however, which is clearly holding the sack for that amount of oil, in drying up outside capital funds from designed to compound its financial diffito say nothing of any recoupment on its all quarters and for all purposes. If a culties

and damaging bona fide priinvestment. Other oil companies are contract made with one government is vate American interests in the bargainowed comparable amounts, in keeping likely to last no longer than the inaugu

we had better ask ourselves how long we with the extent of their operations and ration of the next government particu

can continue to underwrite such expericontracts. As for the Government's other charge- concept of long-term investment can no larly in South America—then the whole ments. We have no mandate from the

American taxpayers to continue to pour that the contracts are uneconomic-it longer apply either, a conclusion which their income down bottomless pits, and is unlikely that the oil companies would will be speedily drawn by potential in

they appear to exist all over. disagree with this assertion. They have vestors everywhere.

It is one thing to love thy neighbor as clearly been uneconomic for the companies thus far, since the companies have it appears that some of the politicians is becoming a pretty large neighborhood.

From reports coming out of Argentina, thyself, as the Bible enjoins us; but this are left at the moment with not much having the state oil agency take over all globe. If every

sovereign government on continued to invest, and reinvest, and there profess to see a solution by simply American aid just about blankets the to show for their effort except overdue oil operations. That such a course would earth wishes to dig its own economic bills. Just why the contracts are uneconomic be naive in the extreme is rather obvious. grave, it has a sovereign right to do so,

I presume; but the American Governto the Argentine Government is difficult The record indicates that the U.S. com

ment also has a sovereign right to refuse to see. As I have noted, they have saved panies have done more to increase oil the Government millions of dollars in production in 4 years than the state had to pay the cost of excavation. Indeed,

we could not do so even if we wanted to; desperately needed foreign exchange.

accomplished in half a century, and it
took a large amount of capital in addi- America, or anywhere else in the world,

there is simply not that much money in As to the price the Government pays the

tion to know-how. companies for the oil—and this is quite

for that matter. apart from any considerations of sanc

Moreover, Argentina simply does not

I think it might be helpful if this fact have the financial capabilities to pay could be slightly better appreciated by tity of contract-it appears to be considerably less than the cost of oil of com

the costs of taking over the U.S. opera- some of the many countries which look parable quality imported from Venezuela, tions. Beyond this, it does not have the to us for

support. It might as well be the Middle East, or anywhere else in the funds to commit to needed further oil understood that while the United States free world. The former Secretary of development.

is willing to continue to contribute to the Energy and Fuels recently testified that

About the only foreseeable conse

cause of freedom throughout the world, the oil supplied by the contracting com

quences of this cavalier course would be it does not plan to bankrupt itself in panies costs between 20 and 50 percent to render any contract with the Ar- the process, and thus sacrifice its own less than similar types of imported crude. gentine Government next to worthless freedom, leaving the field to the enemies

That is the testimony of Argentine of- in international circles, while hastening of freedom. ficials themselves. The witness pointed the Argentine oil industry down the

To make this understood, I think we out that this represents oil which the road its railroads have already gone.

had better start today. One way to do Government was in no financial or tech

One other alternative has been hinted this is to make it plainly understood nical position to find oil and develop it at—that Argentina might make up its that the U.S. Government is not preitself.

oil deficiency by importing Russian oil. pared to give money, goods, or services Not only have the U.S. companies been It is no secret that the Communists to countries which will not even honor supplying oil at lower rates than it could would be delighted to see this happen. their obligations to U.S. citizens and be imported; under their contracts they with the tragic example of Cuba before

corporations. Unilateral abrogation of are also charging less for a barrel than them, I doubt that a majority of Argen- such

such obligations by other countries the Government oil agency can produce tine citizens would care to follow that should be understood to be synonomous it through its own efforts, on the basis of course, since they value freedom highly. with unilateral cessation of aid from this cost estimates submitted to the Congress

As I said at the start of these remarks, country. by that agency. And on the basis of the what is happening in this particular sit- Mr. MORSE. Mr. President, will the Government's own per-barrel valuation, uation typifies some of the dilemmas fac- Senator from Iowa yield? the value of the oil already delivered by ing our foreign aid program in a number

The PRESIDING OFFICER (Mr. one company exceeded the price charged of areas. It is my understanding that MCINYTRE in the chair). Does the Senby some $20 million. To put it another our viewpoint is that we wish to do what- ator from Iowa yield to the Senator from way, the Argentine Government has re

ever we can to assist freely elected gov- Oregon? ceived oil for a price $20 million less ernments throughout the world, where Mr. HICKENLOOPER. I have a numthan it would have cost to produce it we can assist, with the necessarily rather ber of newspaper articles, communicaitself, according to its own figures. Yet imprecise goal in mind of advancing the tions, and so forth, which I wish to disthe Argentine Federal company has not cause of human freedom, in which we cuss and to have printed in the RECORD, even paid for all the oil. believe.

but I can do that a little later. They are in further reference to the amend the provisions of the contracts, and up to

the provisions of the contracts, and up to the full value thereof, as required by interments we adopted last year and to those this time the contracts have been con

national law, or fails to take steps designed

to provide relief from such taxes, exactions, we adopted this year in regard to these summated in full good faith. Therefore,

or conditions, as the case may be []; and items. at this time nullification would amount

such suspension shall continue until [he] I am happy to yield to the Senator to a direct seizure of property rights, and the President is satisfied that appropriate from Oregon. the amendment will apply.

steps are being taken, and no other provision Mr. MORSE. Mr. President, I wish to Mr. MORSE. The Senator from Iowa of this Act shall be construed to authorize ask about these amendments. The Sen- and I have talked with other members

and I have talked with other members the President to waive the provisions of this ator from Iowa and I have held conver- of the committee and other members of subsection.

Upon request of the President (within sevsations, not only in regard to what is the subcommittee—because both of us

enty days after such action referred to in parhappening in Argentina, but also in re- are members of the Subcommittee on

agraphs (1), (2), or (3) of this subsection) gard to what is happening in other Latin Latin American Affairs; these members

the Foreign Claims Settlement Commission American countries. The Senator from are very much concerned about whether

much concerned about whether of the United States (established pursuant to Iowa knows that I am very much con- the nullification amendment applies to

the nullification amendment applies to Reorganization Plan No. 1 of 1954, 68 Stat. cerned about the application of the Hick- this year's bill. I said to them that I 1279) is hereby authorized to evaluate exproenlooper amendment to these situations. think it does. However, this is a good

think it does. However, this is a good priated property, determining the full value In fact, some of us considered trying to time to clarify that situation and to leave

of any property nationalized, expropriated, or

seized, or subjected to discriminatory or other broaden the Hickenlooper amendment; no doubt about that matter.

actions as aforesaid, for purposes of this subbut after my discussion with the Senator Will the Senator from Iowa take time

section and to render an advisory report to from Iowa, I am inclined to agree with to refer to the Hickenlooper amendment the President within ninety days after such his view that probably no other amend- of last year and also to the proposed

of last year and also to the proposed request. Unless authorized by the President, ment is needed, if there is clear agree- changes in it, as contained in this year's

changes in it, as contained in this year's the Commission shall not publish its advisment as to what the Hickenlooper bill. In my opinion this supports his ory report except to the citizen or entity amendment already encompasses.

contention, in which I join, that the owning such property. There is hereby auSo far as the situation in Argentina Hickenlooper amendment, as it will be in

thorized to be appropriated such amount,

to remain available until expended, as may is concerned, our proper course is very existence after the enactment of this bill,

be necessary from time to time to enable the clearly indicated by the facts in that will cover the Argentine oil contract nul- Commission to carry out expeditiously its case. If the Argentine Government nul- lification case.

functions under this subsection. lifies those oil contracts and refuses to Mr. HICKENLOOPER. I shall be very

Mr. HICKENLOOPER. Mr. Presifollow the procedures of international happy to do so; and I think it should be

dent, the amendment of last year prolaw which the Hickenlooper amendment made part of this record.

vides as follows: encompasses, and if the Argentine Goy- I call the attention of the Senator from ernment expects to share in any way in Oregon and the attention of other Sena

(e) The President shall suspend assistance the economic assistance provided by the tors to the report of the Foreign Rela

to the government of any country to which United States, our State Department tions Committee on House bill 7885,

assistance is provided under this Act when

the government of such country or any must notify the President of the Argen- dated October 22, 1963, at page 67, and agency or subdivision within such country tine that the Hickenlooper amendment to the item on that page beginning with on or after January 1, 1962will be applied, and that there will be “(e)”. I ask unanimous consent that

(1) has nationalized or expropriated or no "maybe" about it. this portion of the report be printed in

seized ownership or control of property So my first question is in dealing the RECORD.

owned by any United States citizen or by somewhat with a hypothetical case, but

any corporation, partnership, or association There being no objection, the excerpt

not less than 50 per centum beneficially also relating to the situation in the Ar- from the report (No. 588) was ordered owned by United States citizens, or gentine—if the President of Argentina to be printed in the RECORD, as follows: (2) has imposed or enforced discriminaproceeds to nullify these oil contracts, is it the opinion of the Senator from to the government of any country to which

tory taxes or other exactions, or restrictive (e) The President shall suspend assistance

maintenance operational conditions, Iowa that the Hickenlooper amendment assistance is provided under this or any other

which have the effect of nationalizing, exAct when the government of such country propriating, or otherwise seizing ownership be obligated to carry out its provisions, or any [governmental] government agency

or control of property so owned, which, if a satisfactory adjustment of or subdivision within such country on or Then it provides the methods of dethese claims is not made by the Argen- after January 1, 1962—

termination, arbitration, and so forth. tine Government, will result in the cessa

(1) has nationalized or expropriated or tion of our economic aid to Argentina? owned by any Ünited States citizen or by seized ownership or control of property

I have read the language down to that owned by any United States citizen or by point, as contained in the present law. Mr. HICKENLOOPER.

Now I read the additions which were ion, the answer to that question is “Yes.” not less than 50 per centum beneficially

not less than 50 per centum beneficially made in the committee this year, in I believe the amendment of last year- owned by United States citizens, or

strengthening that language. the provision now in the law-could be (2) has taken steps to repudiate or nul- The present law reads as follows: extended, by proper interpretation, to lify existing contracts or agreements with any

(e) The President shall suspend assistance cover such a situation of nullification United States citizen or any corporation,

to the government of any country to which of contracts, as compared with expropri- partnership, or association not less than 50

assistance is provided under this ation or seizure of physical property.

per centum beneficially owned by United
States citizens, or

And this year we added-
But certainly under the amendments we

[(2)) (3) has imposed or enforced discrimhave adopted and under the additional inatory taxes or other exactions, or restric

or any other. amendment which now is before us, tive maintenance or operational conditions, The words "or any other" were added which specifically refers to nullification or has taken other actions, which have the

this year. So the language would then and to action which has the effect of de- effect of nationalizing, expropriating, or oth- read: stroying the property rights of indi- erwise seizing ownership or control of prop

(e) The President shall suspend assistviduals, I think there is no question that erty so owned,

ance to the government of any country to it applies and that it would have to be and such country, government agency or

which assistance is provided under this or applied not only to nullification of these government subdivision fails within a rea

any other act when the government of such oil contracts, which have been in effect sonable time (not more than six months

country or anyafter such [action or after the date of enactsince 1958, but also to the fruits of them, ment of this subsection, whichever is later] And we substituted for the word “goyof which Argentina has taken advan

action or, in the event of a referral to the ernmental" the word "government”tage. The latter point raises a further Foreign Claims Settlement Commission of question, for this is not a question of the United States within such period as

government agency or subdivision within

such country on or after January 1, 1962– nullification of contracts after they provided herein, not more than twenty days were entered into, but before perform after the report of the Commission is re

Paragraph (1), which I read a while ance was had under them-although un- include arbitration, to discharge its obligaceived) to take appropriate steps, which may

ago, would remain the same. der some legal concepts, damages might tions under international law toward such

Then we added (2), a paragraph which be due in that situation. On the concitizen or entity, including [equitable and]

reads as follows: trary, in this case performance has been speedy compensation for such property in (2) has taken steps to repudiate or nullify had, and the oil has been delivered under convertible foreign exchange, equivalent to existing contracts or agreements with any


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