the Agency should take into consideration the extent and success of efforts by the Agency and the host governments to rectify such relief rolls. The President shall include in his recommendations to the Congress for fiscal year 1962 programs under this Act a report concerning the progress made toward the rectification of the relief rolls as well as toward the repatriation and resettlement of the refugees by the governments directly concerned. Whenever the President shall determine that it would more effectively contribute to the relief, repatriation, and resettlement of Palestine refugees in the Near East he may expend any part of the funds made available pursuant to this section through any other agency he may designate." (i) Section 409, which relates to ocean freight charges, is amended as follows: (1) In subsection (a), after "such nations and areas" insert ", or, in the case of such nations and areas which are landlocked, transportation charges from the United States ports to designated points of entry in such nations and areas,". (2) In subsection (c), strike out "1960" and "$2,300,000" and substitute "1961" and "$2,000,000", respectively. (j) Amend section 411, which relates to administrative and other expenses, as follows: (1) In subsection (b), which relates to certain expenses of administering nonmilitary assistance, strike out "1960" and "$39,500,000" and substitute "1961" and "$40,000,000", respectively. (2) In subsection (c), which relates to administrative and other expenses of the Department of State, strike out "to" after "appropriated” and substitute "for expenses of". (k) Section 412, which relates to the President's special education and training fund, is repealed. (1) In section 419(a), which relates to atoms for peace, strike out "1960" and "$6,500,000" and substitute "1961" and "$3,400,000", respectively. (m) Add the following new section after section 420: "Sec. 421. Loans to Small Farmers.It is the policy of the United States and the purpose of this section to strengthen the economies of underdeveloped nations, and in nations where the economy is essentially rural or based on small villages, to provide assistance designed to improve agricultural methods and techniques, to stimulate and encourage the developmnt of local programs of selfhelp and mutual cooperation, particularly through loans of foreign currencies for associations of operators of small farms, formed for the purpose of joint action designed to increase or diversify agricultural productivity. The maximum unpaid balance of loans made to any association under this section may not exceed $25,000 at any one time; and the aggregate unpaid balance of all loans made under this section may not exceed $10,000,000 at any one time." Chapter III-Contingency Fund Sec. 301. Section 451(b) of the Mutual Security Act of 1954, as amended, which relates to the President's special authority and contingency fund, is amended by striking out "1960" and "$155,000,000" in the first sentence and substituting “1961" and "$150,000,000", respectively. Chapter IV-General and Administrative Provisions Sec. 401. Chapter IV of the Mutual Security Act of 1954, as amended, which relates to general and administrative provisions, is amended as follows: (a) Section 502, which relates to use of foreign currency, is amended as follows: (1) Subsection (b) is amended as follows: (i) Insert after the word "expended" in the proviso the words "and the amounts of dollar expenditures made from appropriated funds in connection with travel outside the United States". (ii) Amend the second sentence to read as follows: "Within the first sixty days that Congress is in session in each calendar year, the chairman of each such committee shall prepare a consolidated report showing the total itemized expenditures during the preceding calendar year of the committee and each subcommittee thereof, incurred as a result of the official activities of the members and employees of such committee or subcommittee, and shall forward such consolidated report to the Committee on House Administration of the House of Representatives (if the committee be a committee of the House of Representatives or a joint committee whose funds are disbursed by the Clerk of the House) or to the Committee on Appropriations of the Senate (if the committee be a Senate committee or a joint committee whose funds are disbursed by the Secretary of the Senate)." (2) At the end of the section, add the following new subsection: "(c) It is the sense of the Congress that prompt and careful consideration should be given to participation by the United States in an internationally financed program which would utilize foreign currencies available to the United States to preserve the great cultural monuments of the Upper Nile. Accord ingly, the President is requested to submit to the Congress on or before March 1, 1961, his recommendations concerning such a program." (b) Section 504(d), which relates to small machine tools and other industrial equipment, is repealed. (c) In section 505(a), which relates to loan assistance and sales, insert after the first sentence the following new sentence: "Commodities, equipment, and materials transferred to the United States as repayment may be used for assistance authorized by this Act, other than title II of chapter II, in accordance with the provisions of this Act applicable to the furnishing of such assistance.". (d) In section 513, which relates to notice to legislative committees, insert before", and copies" in the last sentence the following: “and under the last clause of the second sentence of section 404". (e) Amend section 517, which relates to completion of plans and cost estimates, as follows: (1) Insert "(a)" immediately after "Sec. 517. Completion of Plans and Cost Estimates.-". (2) Add the following at the end of such section: "(b) Plans required under this section for any water or related land resource construction project or program shall include a computation of benefits and costs made insofar as practicable in accordance with the procedures set forth in Circular A-47 of the Bureau of the Budget with respect to such computations." (f) Amend section 523, which relates to coordination with foreign policy, by adding the following new subsection: "(d) Whenever the President determines that the achievement of United States foreign policy objectives in a given country requires it, he may direct the chief of the United States diplomatic mission there to issue regulations applicable to members of the Armed Forces and officers and employees of the United States Government, and to contractors with the United States Government and their employees, governing the extent to which their pay and allowances received and to be used in that country shall be paid in local currency. Notwithstanding any other law, United States Government agencies are authorized and directed to comply with such regulations.” (g) Amend section 527, which relates to employment of personnel, as follows: (1) In subsection (c), which relates to employment of personnel outside the United States, strike out "Director" in the introductory clause and substitute "President"; and insert before the period at the end of paragraph (2) the following new proviso: ": Provided further, That Foreign Service Reserve officers appointed or assigned pursuant to this paragraph shall receive in-class promotions in accordance with such regulations as the President may prescribe”. (2) In subsection (d), which relates to appointment of alien employees outside the United States, strike out ", at the request of the Director". (h) Section 531, which relates to security clearance, is amended to read as follows: "Sec. 531. Security Clearance.-The standards and procedures set forth in Executive Order Numbered 10450, as amended or supplemented, shall apply to the employment under this Act by any agency administering nonmilitary assistance of any citizen or resident of the United States. (i) In subsection (c) of section 533A, relating to the Inspector General and Comptroller, strike out paragraph (9) and renumber paragraphs (10) and (11) as paragraphs (9) and (10), respectively. (j) In section 534(a) which relates to reports, strike out "six months" in the first sentence and substitute "fiscal year." (k) In section 537 (a), which relates to provisions on uses of funds, amend paragraph (3) to read as follows: "(3) contracting with individuals for personal services abroad: Provided, That such individuals shall not be regarded as employees of the United States for the purpose of any law administered by the Civil Service Commission;". (1) In section 537 (c), which relates to construction or acquisition of facilities abroad, strike out "$2,750,000" and substitute "$4,250,000". (m) Add the following new section immediately after section 551: "Sec. 552. Assistance to Cuba.-No assistance shall be furnished under this Act to Cuba after the date of enactment of the Mutual Security Act of 1960 unless the President determines that such assistance is in the national and hemispheric interest of the United States." Chapter V-Technical Amendments Reflecting New Limits of United States Sec. 501. The Mutual Security Act of 1954, as amended, is amended as follows: (a) In section 205(c), strike out “continental" in the twelfth clause of the first sentence. (b) In section 411(d), strike out “the continental limits of”. (c) In section 527 (c), strike out "the continental limits of” in the introductory clause. (d) In section 527(d), strike out "the continental limits of". (e) In section 530(a), strike out "the continental limits of". (f) In section 537 (a), strike out "continental" in the last proviso of paragraph (5) and in paragraphs (13) and (17); and strike out "the continental limits of" in paragraph (10). Chapter VI-Amendments to Other Laws Sec. 601. Title II of the Agricultural Trade Development and Assistance Act of 1954, as amended (7 U.S.C. 1721 and the following), which relates to famine relief and other assistance, is amended as follows: (a) (1) In section 202, strike out "The" at the beginning thereof and substitute the following: "In order to facilitate the utilization of surplus agricultural commodities in meeting the requirements of needy peoples, and in order to promote economic development in underdeveloped areas in addition to that which can be accomplished under title I of this Act, the". (2) The amendment made by this subsection shall expire June 30, 1961. (b) In section 203, which relates to delivery of relief supplies, in the third sentence after the words "designated ports of entry abroad" insert ", or, in the case of landlocked countries, transportation from United States ports to designated points of entry abroad,", and before the period at the end of such sentence insert the following:", and charges for general average contributions arising out of the ocean transport of commodities transferred pursuant hereto may be paid from such funds”. Sec. 602. Section 501(b) of the Mutual Security Act of 1959 (73 Stat. 256), which relates to international cooperation in health, is repealed. Sec. 603. Section 3(a) of Public Law 403, Eightieth Congress, as amended (22 U.S.C. 280b), which relates to United States membership in the South Pacific Commission, is amended by striking out "$75,000" and substituting "$100,000". Sec. 604. The President shall have a study made of the functions of, and the degree of coordination among, agencies engaged in foreign economic activities, including the Department of State, the International Coperation Administration, the Development Loan Fund, the Export-Import Bank, and the Department of Agriculture, with a view to providing the most effective means for the formulation and implementation of United States foreign economic policies. The President shall include in his presentation to the Congress of the fiscal year 1962 mutual security program his findings and recommendations resulting from such study. Chapter VII-Center for Cultural and Technical Interchange Between East and West Sec. 701. This chapter may be cited as the "Center for Cultural and Technical Interchange Between East and West Act of 1960". Sec. 702. The purpose of this chapter is to promote better relations and understanding between the United States and the nations of Asia and the Pacific (hereinafter referred to as "the East") through cooperative study, training, and research, by establishing in Hawaii a Center for Cultural and Technical Interchange Between East and West where scholars and students in various fields from the nations of the East and West may study, give and receive training, exchange ideas and views, and conduct other activities primarily in support of the objectives of the United States Information and Educational Exchange Act of 1948, as amended, title III of chapter II of the Mutual Security Act of 1954, and other Acts promoting the international, educational, cultural, and related activities of the United States. Sec. 703. In order to carry out the purpose of this chapter the Secretary of State (hereinafter referred to as the "Secretary") shall provide for (1) the establishment and operation in Hawaii of an educational institution to be known as the Center for Cultural and Technical Interchange Between East and West, through arrangements with public, educational, or other nonprofit institutions; (2) grants, fellowships, and other payments to outstanding scholars and authorities from the nations of the East and West as may be necessary to attract such scholars and authorities to the Center; (3) grants, scholarships, and other payments to qualified students from the nations of the East and West as may be necessary to enable such stu dents to engage in study or training at the Center; and (4) making the facilities of the Center available for study or training to other qualified persons. Sec. 704. (a) In carrying out the provisions of this chapter, the Secretary may utilize his authority under the provisions of the United States Information and Educational Exchange Act of 1948, as amended. (b) The Secretary may, in administering the provisions of this chapter, accept from public and private sources money and property to be utilized in carrying out the purposes and functions of the Center. In utilizing any gifts, bequests, or devises accepted there shall be available to the Secretary the same authorities as are available to him in accepting and utilizing gifts, bequests, and devises to the Foreign Service Institute under the provisions of title X, part C of the Foreign Service Act of 1946, as amended. For the purposes of Federal income, estate, and gift taxes, any gift, devise, or bequest accepted by the Secretary under the authority of this chapter shall be deemed to be a gift, devise, or bequest to or for the use of the United States. (c) The Secretary shall make an annual report to the Congress with respect to his activities under the provisions of this chapter, and such report shall include any recommendations for needed revisions in this chapter. Sec. 705. There are authorized to be appropriated, to remain available until expended, such amounts as may be necessary to carry out the provisions of this chapter. Chapter VIII-Hemispheric Center for Cultural and Technical Interchange Statement of purpose Sec. 801. The purpose of this chapter is to promote better relations and understanding between the United States and the other nations of the Western Hemisphere (hereinafter referred to as "the Hemisphere") through cooperative study and research, by establishing in Puerto Rico a Hemispheric Center for Cultural and Technical Interchange, either as a branch of an existing institution of higher learning or as a separate institution, where scholars and students, in various fields from the nations of the Hemisphere may meet, study, exchange ideas and views, and conduct other activities primarily in support of the objectives of the United States Information and Educational Exchange Act of 1948, as amended, and title III of chapter II of the Mutual Security Act of 1954 and other Acts promoting the international educational, cultural, and related activities of the United States. Establishment of Center Sec. 802. In order to carry out the purposes of this chapter the Secretary of State (hereinafter referred to as “Secretary"), after consultation with appropriate public and private authorities, may, on or before January 3, 1961, prepare and submit to the Congress a plan and program for (1) the establishment and operation in Puerto Rico of an educational institution to be known as the Hemispheric Center for Cultural and Technical Interchange through arrangements to be made with public, educational, or other nonprofit institutions; (2) grants, fellowships, and other payments to outstanding scholars and authorities from the nations of the Hemisphere as may be necessary to attract such scholars and authorities to the Center; (3) grants, scholarships, and other payments to qualified candidates from the nations of the Hemisphere as may be necessary to enable such students to engage in study at the Center; and (4) making the facilities of the Center available for study to other qualified persons on reasonable basis. And the Senate agree to the same. J. W. FULBRIGHT, THEODORE FRANCIS GREEN, ALEXANDER WILEY, BOURKE B. HICKENLOOPER, Managers on the Part of the Senate. THOMAS E. MORGAN, A. S. J. CARNAHAN, CLEMENT J. ZABLOCKI, ROBERT B. CHIPERFIELD, Managers on the Part of the House. The Senate proceeded to consider the said report; and Resolved, That the Senate agree thereto. Ordered, That the Secretary notify the House of Representatives thereof. PAYMENT OF ANNUITIES AND RETIRED PAY TO OFFICERS AND EMPLOYEES OF THE UNITED STATES On motion by Mr. DIRKSEN, The Senate proceeded to consider the bill (H.R. 4601) to amend the act of September 1, 1954, in order to limit to cases involving the national security the prohibition on payment of annuities and retired pay to officers and employees of the United States, to clarify the application and operation of such act, and for other purposes. Pending debate, and Civil Service and that the bill (S. 91) of an identical title, be recommitted to the Committee on Post Office and Civil Service. CONFERENCE REPORT ON HOUSE BILL 8042 Mr. BARTLETT submitted the following conference report: The committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 8042) to authorize the Secretary of Commerce to resell four Cl-SAY-1 type vessels to the Government of the Republic of China for use in Chinese trade in Far East and Near East waters exclusively, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the House recede from its disagreement to the amendment of the Senate to the text of the bill and agree to the same. That the House recede from its disagreement to the amendment of the Senate to the title of the bill and agree to the same. WARREN G. MAGNUSON, EDWARD A. GARMATZ, FRIDAY, MAY 13, 1960 Mr. MIKE MANSFIELD, from the State of Montana, called the Senate to order and the Chaplain offered prayer. APPOINTMENT OF ACTING PRESIDENT PRO TEMPORE The Secretary read the following communication from the President pro tempore: U.S. SENATE, PRESIDENT PRO TEMPORE, Washington, D.C., May 13, 1960. To the Senate: Being temporarily absent from the Senate, I appoint Hon. MIKE MANSFIELD, a Senator from the State of Montana, to perform the duties of the Chair during my absence. CARL HAYDEN, Mr. MANSFIELD thereupon took the chair. THE JOURNAL On motion by Mr. JOHNSON of Texas, and by unanimous consent, The reading of the Journal of the proceedings of Thursday, May 12, 1960, was dispensed with. COMMITTEES AUTHORIZED TO SIT The Subcommittee on Antitrust and Monopoly, and the Subcommittee on Internal Security of the Committee on the Judiciary were authorized to sit today, on the request of Mr. JOHNSON of Texas. MESSAGE FROM THE HOUSE A message from the House of Representatives by Mr. Bartlett, one of its clerks: Mr. President: The House of Representatives has passed the bill (S. 1358) to authorize the Secretary of the Interior to provide a headquarters site for Mount Rainier National Park in the general vicinity of Ashford, Wash., and for other purposes, with an amendment, in which it requests the concurrence of the Senate. The House has agreed to the report of the committee of conference on the disagreeing votes of the two Houses on the amendments of the Senate to the bill (H.R. 8042) to authorize the Secretary of Commerce to resell four C1-SAY-1 type vessels of the Government of the Republic of China for use in Chinese trade in Far East and Near East waters exclusively. The House has agreed to the amendment of the Senate to the joint resolution (H.J. Res. 352) to authorize preliminary study and review in connection with proposed additional building for the Library of Congress. The House has passed the following bills, in which it requests the concurrence of the Senate: H.R. 5098. An act to provide for the application and disposition of net revenues from the power development on the Grand Valley Federal reclamation project, Colorado; H.R. 10495. An act to authorize appropriations for the fiscal years 1962 and 1963 for the construction of certain highways in accordance with title 23 of the United States Code, and for other purposes; and H.R. 11318. An act to provide that those persons entitled to retired pay or retainer pay under the Career Compensation Act of 1949 who were prohibited from computing their retired pay or retainer pay under the rates provided by the act of May 20, 1958, shall be entitled to have their retired pay or retainer pay recomputed on the rates of basic pay provided by the act of May 20, 1958. HOUSE BILLS REFERRED The bills this day received from the House of Representatives for concurrence were severally read the first and second times by unanimous consent, Ordered, That the bill H.R. 5098 be referred to the Committee on Interior and Insular Affairs; That the bill H.R. 10495 be referred to the Committee on Public Works; and That the bill H.R. 11318 be referred to the Committee on Armed Services. CONTRIBUTIONS TO THE STATES BY THE OFFICE OF CIVIL AND DEFENSE MOBILIZATION The ACTING PRESIDENT pro tempore laid before the Senate a communication from the Director of the Office of Civil and Defense Mobilization, Executive Office of the President, transmitting, pursuant to law, a report for the quarter ending March 31, 1960, of Federal contributions to the States under section 201(i) of the Federal Civil Defense Act of 1950; which, with the accompanying papers, was referred to the Committee on Armed Services. AMENDMENT OF NATIONAL HOUSING ACT The ACTING PRESIDENT pro tempore laid before the Senate a communication from the Secretary of Defense, transmitting a draft of proposed legislation to amend title VIII of the National Housing Act, and for other purposes; which, with the accompanying paper, was referred to the Committee on Banking and Currency. USE OF SURPLUS GRAIN The ACTING PRESIDENT pro tempore laid before the Senate a communication from the Secretary of the Interior, transmitting a draft of proposed legislation to authorize the use of surplus grain by the States for emergency use in the feeding of resident game birds and other wildlife; which, with the accompanying paper, was referred to the Committee on Interstate and Foreign Commerce. AMENDMENT OF CLASSIFICATION ACT OF 1949 The ACTING PRESIDENT pro tempore laid before the Senate a communication from the Attorney General, transmitting a draft of proposed legislation to amend section 507 of the Classification Act of 1949, with respect to the preservation of basic compensation in downgrading actions; which, with the accompanying paper, was referred to the Committee on Post Office and Civil Service. PETITION The ACTING PRESIDENT laid before the Senate a concurrent resolution of the Legislature of the State of Massachusetts, favoring the enactment of legislation increasing the compensation of all postal employees; which was referred to the Committee on Post Office and Civil Service. REPORT ON JUSTIFICATION OF WILSON DAM AND RESERVOIR, SALINE RIVER, KANS. Mr. YOUNG of Ohio (for Mr. CHAVEZ) presented a communication from the Secretary of the Army, together with a letter from the Chief of Engineers, Department of the Army, on a report demonstrating economic justification of Wilson Dam and Reservoir, Saline River, Kans.; which was ordered to be printed as a Senate document with illustrations. REPORTS OF COMMITTEES Mr. GREEN, from the Committee on Foreign Relations, to whom was referred the bill (S. 3074) to provide for the par ticipation of the United States in the International Development Association, reported it without amendment and submitted a report (No. 1349) thereon. Mr. PASTORE, from the Committee on Interstate and Foreign Commerce, to whom was referred the bill (S. 1235) to authorize the Secretary of Commerce to enter into contracts for the conduct of research in the field of meteorology and to authorize installation of Government telephones in certain private residences, reported it without amendment, and submitted a report (No. 1348), thereon. Mr. DIRKSEN (for Mr. O'MAHONEY) from the Committee on the Judiciary, to whom was referred the joint resolution (H.J. Res. 602) authorizing the President to proclaim the week in May of 1960 in which falls the third Friday of that month as National Transportation Week, reported it without amendment and submitted a report (No. 1350) thereon. On motion by Mr. MANSFIELD, and by unanimous consent, The Senate proceeded to consider the said joint resolution; and no amendment being made, Ordered, That is pass to a third read ing. The said joint resolution was read the third time. Resolved, That it pass. INTRODUCTION OF BILLS AND A JOINT Bills and a joint resolution were introduced, severally read the first and second times by unanimous consent and referred as follows: By Mr. MORSE: S. 3543. A bill for the relief of Willia Niukkanen (also known as William Niukkanen, and William Albert Mackie); to the Committee on the Judiciary: By Mr. WILEY: S. 3544. A bill to amend the Menominee Termination Act; to the Committee on Interior and Insular Affairs. By Mr. GRUENING (for himself and Mr. BARTLETT): S. 3545. A bill to amend section 4 of the act of January 21, 1929, 48 U.S.C. 354a (c), and for other purposes; to the Committee on Interior and Insular Affairs. By Mr. MANSFIELD (for himself and Mr. MURRAY): S. 3546. A bill to amend the act of June 18, 1934 (48 Stat. 986); to the Committee on Interior and Insular Affairs. By Mr. BYRD of Virginia: S. 3547. A bill relating to the recovery from liable third persons of the cost of medical care and treatment furnished by agencies and departments of the United States to persons authorized by law to receive such care and treatment; to the Committee on Armed Services. By Mr. ALLOTT: S.J. Res. 192. Joint resolution designating September 22 of each year as Emancipation Proclamation Day, and for other purposes; to the Committee on the Judiciary. CERTAIN CONSTRUCTION AT MILITARY IN STALLATIONS On motion by Mr. MANSFIELD, and by unanimous consent, The Senate resumed the consideration of its unfinished business, viz, the bill (H.R. 10777) to authorize certain construction at military installations, and for other purposes. On the question of agreeing to the reported amendment, striking out all after the enacting clause and inserting in lieu thereof other words, The reported amendment was amended on the motion of Mr. BYRD of Virginia. Pending debate, PERSONNEL MATTERS IN THE COAST GUARD On motion by Mr. MANSFIELD, and by unanimous consent, The Senate proceeded to consider the bill (H.R. 9449) to amend certain sections of title 14, United States Code, relating to personnel matters in the U.S. Coast Guard, and for other purposes; and no amendment being made, Ordered, That it pass to a third reading. The said bill was read the third time. Resolved, That it pass. Ordered, That the Secretary notify the House of Representatives thereof. CERTAIN CONSTRUCTION AT MILITARY IN STALLATIONS The Senate resumed the consideration of its unfinished business, viz, the bill (H.R. 10777) to authorize certain construction at military installations, and for other purposes. The reported amendment was further amended on the motion of Mr. HOLLAND, the motion of Mr. GOLDWATER, the motion of Mr. ANDERSON, the motion of Mr. MANSFIELD, and the motion of Mr. STENNIS. The reported amendment, as amended, was agreed to. Ordered, That the amendment be engrossed and the bill read a third time. The said bill, as amended, was read the third time. Resolved, That it pass. On motion by Mr. STENNIS, and by unanimous consent, Ordered, That the bill be printed as passed by the Senate. On motion by Mr. STENNIS, Resolved, That the Senate insist upon its amendment to the said bill and ask a conference with the House of Representatives thereon. Ordered, That the conferees on the part of the Senate be appointed by the Presiding Officer; and The PRESIDING OFFICER (Mr. BYRD of West Virginia in the chair) appointed Mr. STENNIS, Mr. JACKSON, Mr. CANNON, Mr. CASE of South Dakota, and Mr. SALTONSTALL. Ordered, That the Secretary notify the House of Representatives thereof. AUTHORITY FOR SIGNING ENROLLED BILLS On motion by Mr. MANSFIELD, and by unanimous consent, Ordered, That during the adjournment of the Senate following today's session, the Vice President or the President pro tempore be authorized to sign bills duly passed by the two Houses and found truly enrolled by the Secretary of the Senate. AMENDMENT OF MOTOR VEHICLE SAFETY RESPONSIBILITY ACT OF THE DISTRICT OF COLUMBIA On motion by Mr. MANSFIELD, The Senate resumed the consideration of the bill (S. 2131) to amend the Motor Vehicle Safety Responsibility Act of the District of Columbia, approved May 25, 1954, as amended. MESSAGE FROM THE HOUSE A message from the House of Representatives by Mr. Maurer, one of its clerks: Mr. President: The Speaker of the House of Representatives having signed three enrolled bills, viz, H.R. 8042, H.R. 9449, and H.R. 11510, and a joint resolution, viz, H.J. Res. 352, I am directed to bring the same to the Senate for the signature of its President. ENROLLED BILLS AND JOINT RESOLUTION The Secretary reported that he had examined and found truly enrolled the following bills and joint resolution: H.R. 8042. An act to authorize the Secretary of Commerce to resell any two of four C1-SAY-1-type vessels to the Government of the Republic of China for use in China trade in Far East and Near East waters exclusively; H.R. 9449. An act to amend certain sections of title 14, United States Code, relating to personnel matters in the U.S. Coast Guard, and for other purposes; H.R. 11510. An act to amend further the Mutual Security Act of 1954, as amended, and for other purposes; and H.J. Res. 352. Joint resolution to authorize preliminary study and review in connection with proposed additional building for the Library of Congress. The ACTING PRESIDENT pro tempore thereupon signed the same. VETO OF SENATE BILL 722 The PRESIDING OFFICER (Mr. BYRD of West Virginia in the chair) laid before the Senate the following message from the President of the United States; which was read: To the Senate of the United States: I return herewith, without my approval, S. 722, the area redevelopment bill. For 5 consecutive years I have urged the Congress to enact sound area assistance legislation. On repeated occasions I have clearly outlined standards for the kind of program that is needed and that I would gladly approve. In 1958 I vetoed a bill because it departed greatly from those standards. In 1959, despite my renewed urging, no area assistance bill was passed by the Congress. Now in 1960, another election year, a new bill is before me that contains certain features which I find even more objectionable than those I found unacceptable in the 1958 bill. The people of the relatively few communities of chronic unemployment-who want to share in the general prosperityare, after 5 years, properly becoming increasingly impatient and are rightfully desirous of constructive action. The need is for truly sound and helpful legislation on which the Congress and the Executive can agree. There is still time, and I willingly pledge once again my wholehearted cooperation in obtaining such a law. S. 722 is seriously defective in six major respects which are summarized immediately below and discussed in detail thereafter. 1. S. 722 would squander the Federal taxpayers' money where there is only temporary economic difficulty, curable without the special Federal assistance provided in the bill. In consequence, communities in genuine need would receive less Federal help for industrial development projects than under the administrations' proposal. 2. Essential local, State, and private initiative would be materially inhibited by the excessive Federal participation that S. 722 would authorize. 3. Federal financing of plant machinery and equipment is unwise and unnecessary and therefore wasteful of money that otherwise could be of real help. 4. The Federal loan assistance which S. 722 would provide for the construction of sewers, water mains, access roads, and other public facilities is unnecessary because such assistance is already available under an existing Government Outright grants for such a program. purpose, a provision of S. 722, are wholly inappropriate. 5. The provisions for Federal loans for the construction of industrial buildings in rural areas are incongruous and unnecessary. 6. The creation of a new Federal agency is not needed and would actually delay initiation of the new program for many months. I The most striking defect of S. 722 is that it would make eligible for Federal assistance areas that don't need it-thus providing less help for communities in genuine need than would the administration's proposal. S. 722, as opposed to the administration bill, would more than double the number of eligible communities competing for Federal participation in loans for the construction or refurbishing of plants for industrial use the main objective of both bills. Communities experiencing only temporary economic difficulty would accordingly be made eligible under S. 722 and the dissipation of Federal help among them would deprive communities afflicted with truly chronic unemployment of the full measure of assistance they so desperately desire and which the administration bill would give them. Lasting solutions to the problems of chronic unemployment can only be forthcoming if local citizens-the people most immediately concerned-take the lead in planning and financing them. The principle objective is to develop new industry. The Federal Government can and should help, but the major role in the undertaking must be the local community's. Neither money alone, nor the Federal Government alone, can do the job. The States also must help, and many are, but in many instances and in many ways they could do much more. Under S. 722, however, financing of industrial development projects by the Federal Government-limited to 35 percent under the administration's proposal-could go as high as 65 percent, local community participation could be as low as 10 percent, and private financing as little as 5 percent. Furthermore, although S. 722 conditions this assistance on approval by a local economic development organization, if no such organization exists one can be appointed from Washington. III S. 722 would authorize Federal loans for the acquisition of machinery and equipment to manufacturers locating in eligible areas. Loans for machinery and equipment are unnecessary, unwise, and costly. Much more money would be required and unnecessarily spent, much less money would find its way into truly helpful projects, and manufacturers would be subsidized unnecessarily vis-avis their competitors. IV S. 722 would authorize further unnecessary spending by providing both loans and grants-up to 100 percent of the cost for the construction of access roads, sewers, water mains, and other local public facilities. Grants for local public facilities far exceed any appropriate Federal responsibility. Even though relatively modest at the start, they would set predictably expensive and discriminatory precedents. With regard to loans for such purposes, exemption from Federal income taxes makes it possible today for local communities in almost every case to borrow on reasonable terms from private sources. Whenever such financing is difficult to obtain, the need can be filled by the existing public facility loan program of the Housing and Home Finance Agency-a program which S. 722 would needlessly duplicate and for which an additional $100 million authorization has already been requested. V S. 722 would make a minimum of 600 rural counties eligible for Federal loans for the construction of industrial building in such areas. The rural development program and the Small Business Administration are already contributing greatly to the economic improvement of low income rural areas. Increasing the impact of these two activities, particularly the rural development program, is a preferable course. |