Full text of "Scope of Soviet activity in the United States. Hearing before the Subcommittee to Investigate the Administration of the Internal Security Act and Other Internal Security Laws of the Committee on the Judiciary, United States Senate, Eighty-fourth Congress, second session[-Eighty-fifth Congress, first session] .."

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SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

HEARING

BEFORE THE

SUBCOMMITTEE TO INVESTIGATE THE

ADMINISTRATION OF THE INTERNAL SECURITY

ACT AND OTHER INTERNAL SECURITY LAWS

OF THE

COMMITTEE ON THE JUDICIARY

UNITED STATES SENATE

EIGHTY-FOURTH CONGRESS

SECOND SESSION
ON

SCOPE OF SOVIET ACTIVITY IN THE
UNITED STATES

SEPTEMBER 5, 1956

PART 43

Printed for the use of the Committee on the Judiciary

UNITED STATES
GOVERNMENT PRINTING OFFICE
72723 WASHINGTON : 1957

Boston Public Library
Superintendent of Documents

JUL 2 5 1957

COMMITTEE ON' THE JUDICIARY

JAMES O. EASTLAND, Mississippi, Chairman

ESTES ETEFAUVER, Tennessee ALEXANDER WILEY. Wisconsin

OLIN D. JOHNSTON, South Carolina WILLIAM LANGER, Nortli Dakota

THOMAS C. HENNINGS, JH., Missouri WILLIAM E. JENNER, Indiana

JOHN L. McCLELLAN, Arljansas ARTHUR V. WATKINS, Utah

PRICE DANIEL, Texas EVERETT McKINLEY DIRKSEN, Illinois

JOSEPH C. O'MAHONEY, Wj-oming HERMAN WELKER, Idaho

MATTHEW M. NEELY, West Virginia JOHN MARSHALL BUTLER, Maryland

Subcommittee To Investigate the Administeation of the Internal SEcrRiTY
Act AND Otheb Internal Security Laws

JAMES O. EASTLAND, Mississippi, Chairman
OLIN D. JOHNSTON, South Carolina WILLIAM E. JENNER, Indiana

JOHN L. McCLELLAN, Arkansas ARTHUR V. WATKINS, Utah

THOMAS C. HENNINGS, Jr., Missouri HERMAN WELKER, Idaho

PRICE DANIEL, Texas JOHN MARSHALL BUTLER, Maryland

Robert Morris, Chief Counsel

J. G. SotJRWiNE, Associate Counsel

William A. Rusher, Associate Counsel

Benjamin Mandel, Director of Research

SCOPE OF SOVIET ACTIVITY IN THE
UNITED STATES

WEDNESDAY, SEPTEMBER 5, 1956

United States Senate,

SUBCOMIMITTEE To In\TESTIGATE THE ADMINISTRATION

OF THE Internal. Security Act and Other Internal

Security Laws, of the Committee on Jltdiciary,

Washington^ D. C.

The subcommittee met, pursuant to recess, at 12 o'clock noon, in
room 318, Senate Office Building, Senator James O. Eastland, chair-
man, presiding.

Also present: Robert Morris, chief counsel; Benjamin Mandel, re-
search director; and William A. Rusher, administrative counsel.

Chairman Eastland. Stand up, please. Raise 3'our right hand.
Do you solemnly swear the testimony you are about to give is the
truth, the whole truth and nothing but the truth, so help you God?

]Mr. Ja^t;ts. I do.

Chairman Eastland. Mr. Javits, I want the record to show that
this hearing is at your request. That is correct, is it not ?

TESTIMONY OF J. K. JAVITS, ATTORNEY GENEEAL. STATE OF

NEW YOEK

Mr. Javits. That is correct. Senator. May I express to the com-
mittee my greatest appreciation for the courtesy and cooperation that
is shown in affording me the hearing which it has this morning, in this
public hearing, at the direction of the chairman.

Mr. Morris. I think, Mr. Chairman, since this issue has been raised
that I would like the record to show the fact that the initial request by
Mr. Javits for this hearing was communicated to me as counsel for the
committee on August 3. At that time I was not able to reach Senator
Eastland — he was fishing off the coast of Florida at that time — until
August 6, at which time Senator Eastland expeditiously tried to make
this hearing as early as possible.

I think. General Javits, you will recall that between the 16th and the
26th of August it was impossible for you, and up until the 16th of
August it was impossible for the Senator, unless you would agree to
a very quiet hearing in Chicago — the fact being that there was a
political afl'air on then.

But the point is that Senator Eastland has tried in every way to
have this hearing earlier than today.

Mr. Javits. Judge Morris ■

Mr. Morris. Because of the political fact, the overtones of this
political affair on then,

3003

3004 SCOPE OF SOVIET ACTIVITY IX THE UNITED STATES

Mr. Javits. I am completely satisfied that the committee has done
its utmost to cooperate. They could have said, "We are not calling
you — we won't be bothered." On the contrary, it put itself out to
answer my request, and I am very grateful. And if the chairman will
allow me, I would like to say that in all my years in the Congress I
tried very hard to get to the point where people would not be ashamed
to deal with matters of this kind specifically and on the facts. And
I must say that in my case this has come to pass today, and I am very
appreciative.

Chairman Eastland. Proceed.

Mr. Morris. Mr. Chairman. General Javits, on the 14th of June
1956 we received in executive session testimony from Dr. Bella Dodd,
who had earlier been a member of the national committee of the Com-
munist Party, member of the State committee of the Communist
Party, and the person in charge of legislative activities in New York
State.

She had testified that some time, as she put it, in 1945 or 1946, she
had been told by persons in the Communist Party that a Jacob K.
Javits had just come from the west coast, where he had seen service
in Europe, in the European theater and in the Pacific theater; and
that, as she put it, "some of our people" — meaning Communist people,
at that time — "were very much interested in Mr. Javits' political
future."

And they asked her, if she, in her official capacity, as the person
in charge of political activity in New York State, advising and ana-
lyzing focal points of Communist support, whether she would have a
discussion with Jacob K. Javits. She said that Mr. Javits came to
her office, 100 West 42d Street, and they discussed at that time what
district in which he might concentrate in carrying out any activities
in connection with his political future.

She said they specifically discussed the Washington Heights dis-
trict, because the Democratic Party was split there. And she said
that thereafter the Communists, for whom she was in charge of tlie
State committee, did support Mr. Javits in connection with that
forthcoming 1946 campaign.

Now, I have tried to be as careful as possible. General Javits, to
discuss this particular testimony and to state it for you. And as you
know, we mentioned this in executive session today, and we would
like to ask you if you will now testify, as much as possible, about that
particular episode.

Mr, Ja\t:ts. I will be glad to. Judge.

Mr. Morris. May I begin. General, by asking — as you told us in
executive session: Had you been on the west coast prior to this al-
leged meeting with Dr. Dodd ?

^ Mr.^ Javits. 1 was on the west coast, according to my best recollec-
tion, in 1945, in the period May- June, in round figures, when I was
on terminal leave as a lieutenant colonel from the Army, in connec-
tion with a visit I was making to ol)serve tlie U. N. Organization, be-
cause I had nothing better to do with my time at that time.

And the time to which you refer, whicli is the only call I have ever
made upon Dr. Dodd— and I will give all of the details of that, of
course — is, in round figures, 1 year later.

Mr. Morris. Well, now, did you, as the committee has learned,
arrive — as the committee has been told — I do not know whether it is

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3005

a fact or not — I do not make any presumption whatever about the
fact — did you arrive in San Francisco on April 22, 1945 ?

Mr. Javets. That date would be reasonably correct. I cannot give
you the exact date. It was in the spring, and in connection with the
U. N. conference there.

Mr. Morris. Did you go to San Francisco by train ?

Mr. Javits. My best recollection is that I did.

Mr. Morris. You did?

Mr. Jaaits. Yes.

Mr. Morris. Did the train have as its terminal point, Oakland?

Mr. Javits. Yes.

Mr. IMoRRis. The Oakland station ?

Mr. JA^^TS. Yes.

Mr. Morris. Did you get off the train at Oakland in the company
of Frederick V. Field?

Mr. Ja\t:ts. I think I can say flatly that I did not get off the train
in the company of Frederick Y. Field. My recollection upon that
subject as I have stated to the committee — I will repeat — is that I
met a young man on the ferry who said something about the scenery
or some ordinary expression of that kind, who was a college-boy-
looking type of chap and described himself as Fred Field and said he
was going to cover the UN conference for some newspaper work.
And we exchanged some pleasantries that made no particular impres-
sion on me. And then I may have seen him — this I have no distinct
recollection on— but I may have seen him around the conference to
say, "Hi" to — that is all I know about Fred Field or anything to
do with him.

Mr. Morris. But you will deny, will you not. General Javits, that
you got oft' the train with Fred Field ?

Mr. Ja\^ts. Well, whether I met Fred Field on the train or not,
in the same capacity, I really could not tell you, but I am quite sure
that I did not, but in any case, I did not leave New York with Fred
Field — I had no business witli him — he was not my traveling com-
panion, which I understand to be the purport, the point of the ques-
tions.

Chairman Eastland. As I understand this voyage on the train, so
far as it is concerned, you have no recollection of meeting him on
the train?

Mr. Javits. That is true.

Mr. INIoRRis. Did you meet Mr. Field subsequently on the Oakland
ferry at an early hour of the morning ?

Mr. Javits. I have no recollection of that whatever. Judge Morris.
I do not even remember when I went back to New York or whether
I went back by train or by plane.

Mr. Morris. And you cannot tell us now whether or not — you can-
not recall having a subsequent meeting with Field on the Oakland
ferry ?

Mr. Javits. Well, to stretch it to the uttermost, if I ran into him,
it was in the same way — he was another fellow traveling. And if I
ran into him, I ran into him, but I have no recollection of it whatever.
And as I say, I don't even remember how I went back to New York.

Mr. Morris. You liave no recollection of making several trips on
the ferry while Mr. Field was aboard the ferry ?

3006 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

Mr. Javits. I not only have no recollection, but the answer is flatly
"No" — decidedly "No." I just went about my traveling, whatever
it was, without any business with Field or anybody else of that kind
that I can in any — not only cannot recall — the answer is flatly "No."

Mr. Morris. Now, we have been told, General Javits, that an indi-
vidual named Louise Bransten — and Mr. Mandel, I wonder if you
have a short outline of who Louise Bransten is. I would like to put
this in its proper framework. I might say in connection with Mr.
Field, at that time he was entitled "UN editor to the Daily Worker."
That was his title at the time.

Mr. Javits. I am glad to get that information, Judge, but I can
say flatly that that is something I did not know when he encountered
me.

Mr. Morris. Mr. Mandel, would you put in the record at this time
what evidence we have about Louise Bransten, who she was ?

Mr. Mandel. In a previous hearing with Louise Bransten, con-
ducted in October 1953 we placed into the record an FBI memo-
randum which reads as follows :

During the United Nations Conference on International Organizations held
at San Francisco in the spring of 1945 Louise Bransten entertained at her home
Dimitri Manuelski, the principal representative of the Ukraine SSR, who was
more widely known as a long-time official and spokesman for the Communist
International. Bransten is at the present time [November 1945] in New
York City where she has established contact with Pavel Mikhailov, acting Soviet
consul general, who has been reported to this Bureau and to the RCMP by
Igor Gouzenko, mentioned elsewhere in this memorandum, as the head of the
Red Army intelligence espionage activity.

Mr. Morris. That is all now about Bransten.

Mr. Mandel. Yes. Gregori Makovich Kheifetz, whose cover name
was Mr. Brown, was, until his departure from San Francisco for the
Soviet Union, July 6, 1944, the vice consul and Soviet consul at San
Francisco, according to the protocol form filed by the Soviet Embassy
with the Department of State. Kheifetz was born in Moscow, in
1899. Reportedly, from this protocol form, Kheifetz served as vice
president of the Society for Cultural Relations with Foreign Coun-
tries.

Mr. Morris. I think that is enough.

Chairman Eastland. Proceed.

Mr. Morris. Is there anything else, Mr. INIandel, that should be in
the record by way of characterizing Louise Bransten ?

Mr. Mandel. I have here a memorandum from the House Commit-
tee on Un-American Activities in its hearings conducted in August
and September 1950. May I read a portion of it ?

Mr. Morris. Yes, very briefly.

Mr. Mandel. Louise Berman, formerly Louise Bransten, during
the hearings in October 1947 regarding Communist infiltration of the
motion picture industry, before the Committee on Un-American Ac-
tivities, Louise Bransten was identified as a native of Berkeley, Calif,
and an heiress to a considerable fortune. The home of Louise
Berman, then Bransten, was described as a meeting place of Com-
munists, and Communist sympathizers in the vicinity of San Fran-
ciso. Many social affairs were given in her home, also, for the pur-
pose of entertaining and bringing together Communist Party mem-
bers, including members of Communist espionage rings. She was in
contact with several persons who were employed by the Soviet Gov-

SCOPE OF SOVIET ACTIVITY IN THE UlSriTED STATES 3007

ernment, including Vassili Zubelin, of the Soviet Embassy, in Wash-
ington, D. C.
Mr. Morris. Then, it goes on to list more Soviet personnel, does it

not?

Mr. Mandel. Yes.

Mr. Morris. General Javits, that is strictly for the purpose of
identifying her.

Mr. JA\^TS. I understand there is no implication that involves me in
that very long and seamy description.

Mr. Morris. That is right. Thank you.

We have information and evidence to the effect that you did know
Louise Bransten in San Francisco. I was wondering if you would
tell us if you met her — when you met her and as many occasions as
possible.

Mr. Ja\^ts. Yes, Judge, I am glad to. And anything I know about
her which is of use to the committee is fine with me.

I was introduced to Mrs. Bransten by a friend of mine and a col-
league, because he and I represented for many years the same great
corporation, the Crown-Zellerbach Corp., of San Francisco. The
gentleman is Philips Ehrlich, one of San Francisco's most distin-
guished lawyers, who told me about Mrs. Bransten, said I ought to
meet her. I was a bachelor then on terminal leave as a lieutenant
colonel from the Army. Mr. Ehrlich said that he had just settled an
estate for her, her mother's estate, which involved the sale of her in-
terest in a company called Eosenberg Bros., and that she had come
into a very considerable amount of money, was a very attractive girl,
and I ought to meet her. That I remember. And I have refreshed
my recollection by talking with Mr. Ehrlich about that.

Now, the only encounter which I recall with Mrs. Bransten, of
my own knowledge, is that I met her for cocktails at the Mark Hop-
kins Hotel, sometime in that period that I was in San Francisco.

You say I got there in April. Then I will assume that it may be
the first few days of May, or something like that. I did not stay
more than a week or 10 days. I waited for her for about an hour
and a half. When I was about to leave, she arrived, which did not
make a particularly good impression.

We had a drink. I did not like her particularly, and she did not
me. And, from my recollection, that is the last I saw of her until
some years ago, 5, 6, 7, when I ran into her in a grocery store on
University Place in New York, where I was going to make a phone
call, and she was apparently making a purchase.

I said, "Hello." I do not know whether I called her "Louise" or
"Mrs. Bransten." "What are you doing here?" She said that she
is married, living in that neighborhood.

I said, "Goodby; good luck," or whatever I did, and was on my
way.

Now, Mr. Ehrlich, whom I have endeavored to refresh my recollec-
tion with, tells me that he arranged a dinner either at his home or at
Mrs. Bransten's home — he is not clear which — ^that is his recollec-
tion. It is not my recollection. That is all I know about Louise
Bransten.

Mr. Morris. Do you recall a meeting at Bransten's home at which
you and she were present, and engaged in a serious conversation, and
there came into the room a gentleman named Dr. Max Yergan?

3008 SCOPE OF SOVIET ACTIVITY EST THE UNITED STATES

Mr. Javits. Judge Morris, I do not remember being at Mrs. Brans-
ten's home. I have really searched my recollection and recall only
a very minor fact which I asked you about, as you remember, that
I was in some home in San Francisco as a visitor, which had panel-
ing, but apparently you could not identify it. So I could not tell
you. So that I cannot tell you that I did or did not go to her home,
or meet Max Yergan, but I do know a Max Yergan, and I will be
glad to tell you what I know ?.bout him, to the best of my knowledge.

Mr. Morris. I think it would be wise for you to do so.

Mr. Javits. Max Yergan, as I recall, is a fellow I ran into yeai-s
ago, I cannot tell you where, who was interested in African affairs.
I cannot think of any detailed discussions I had with him, but I just
think it is logical to assume, with the serious interest I have in these
matters of foreign policy, that if he was a fellow interested in Afri-
can affairs, I had some kind of a parlor discussion with him about
what he thought and what I thought, but I had no business or asso-
ciation or closeness of contact or intimacy with Max Yergan.

Mr. Morris. Dr. Yergan at the time was the director of the Council
on African Affairs, which was an organization which was then con-
trolled by the Communists. Dr. Yergan, being at that time a person
who was involved with the Communists, has told the committee
that on this occasion that he joined you and Louise Bransten in a
discussion in the home of Louise Bransten; and we asked him
particulars about the house. He said a two-story house, which is
entered through a front door, through a hallway, off to the left is a
living room and a dining room combined, and going through that
room you go into a large living room which has a large picture win-
dow looking out on San Francisco Bay.

And presumably in that — in the living room, that was where the
discussion took place.

Is it your testimony that you do not recall that ?

ISIr. Javits. I wish I could. I asked you to give me a clue,
because the only memory I have is of some house with paneling.
Otlier than that, I just cannot recollect. I would not say "No," and I
would not say "Yes," because I cannot recollect, but I liaA'e given you
the circumstances of my encounter with Mrs. Bransten, and with the
refreshment of memory which comes from talking with the man who
introduced us.

]\Ir. Morris. Now, Genera] Javits, can you recall another occasion,
again in Bransten's home, at which were present a man named David
Hedley — and, Mr. Mandel, I wonder if you would tell us who David
Hedley was at that time ?

Mr. Mandel. According to the record available to the committee,
the following is the information about David Hedley :

David Hedley was subpenaed and testified before the California
Committee on Un-American Activities, in Oakland, on November 5,
1947. He stated that he was the assistant director of the California
Labor School. He admitted that he had taught a course at the prede-
cessor of the California Labor School, the Communist Tom Mooney
School.

Incidentally, I might add that the California Labor School has
been cited as subversive by the Attorney General.

To go on with the California Committee, although not a citizen,
he stated that he believed that :

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3009

Any kind of a political affiliation or political activity that I may engage in is
my right guaranteed under the Constitution — that it is not proper for the com-
mittee to place questions of that kind.

David Hedley was identified as a member of the Communist Party
by Louis Eosser, a former member of the party in California. Kos-
ser testified before the House Committee on Un-American Activities
on December 1, 1953, pages 3122 and 3123.

Mr. Morris. The next name at this meeting about which, General,
we would like to ask you a few questions is Nancy Pittman, wife of
John Pittman, managmg editor at that time of the People's Daily
World.

Mr. Mandel, do you have anything describing either John Pittman
or Nancy Pittman ?

Mr. Mandel. In testimony before the House Committee on Un-
American Activities on July 21, 1947, John Pittman is listed as a
committee member of the California district of the Communist Party.
In the above testimony he is also listed as a contributor to the Daily
Worker and the Daily People's World and Political Affairs, all three
Communist publications. John Pittman was a contributor in the
issue of August 1950, his article being entitled, "War on Korea, a
Point 4 in Action."

Mr, Javits. Mr. Chairman, if I may, I would like to make this
observation. It is not charged that I had anything to do with these
people. And I think that we can assume that those Judge Morris
would ask me about have some kind of a Communist record. And
yet, in a public hearing it seems to me that as all of this stuff' goes in
the record, I do not Ivuow who might get some impression that I did
or did not have anything to do with that. I put that up to the
chairman.

Chairman Eastland. I agree with you.

Proceed.

Mr. Morris. The question is, General, did you meet at the home of
Louise Bransten in the company of David Hedley, Nancy Pittman,
and Louise Bransten sometime during this period?

Mr. Ja\t;ts. I have not the remotest recollection of meeting any of
these people. If it were not 11 years ago, and that this was not dredged
out of the past, I would say flatly, "No." But how can one who
encounters thousands of people, goes to hundreds of homes, attends
hundreds of meetings — I just would not do it as a lawyer — I would
not be that reckless. I have no recollection whatever of these people
or, indeed, being at Louise Bransten's home, except for what Mr.
Ehrlich tells me we might have been, but if so, it was certainly not
more than once, because, as I say, Mrs. Bransten and I just did not
take to each other. That was that.

Mr. Morris. And did you at that particular meeting discuss a
luncheon that you had with Max Radin that day or the day earlier?

Mr. Javits. Again, I answer in the frame of reference I have men-
tioned before, "No." But I would like to tell you that I have a recol-
lection of a Max Radin that I have met the man some time since 19 —
since I got out of the Army, because my life in a sense began again at
that time in a social way. And as I recall Max Radin, he is the dean
of a law school in California. Whether I had lunch with him or not — ■
what I ever said to him or he to me — I just do not know — but again,

3010 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

this is a man with whom I have no particular association, business
connection or anything else.

Mr. Morris. Now, General Javits, did you subsequently have a
meeting referred to by Dr. Dodd with Dr. Dodd ?

Mr. Javits. Yes, if you would be good enough to allow me, I would
like to state that in some detail, because I guess that is the main
point we are really talking about.

In the area of May-June, 1946, when I was in the process of being
nominated for Congress, it is my recollection that I got — whether I
got it myself or the Liberal Party gave it to me or friends gave it to
me — a long list of people that I ought to see, to get educated about
what is going on in New York. I had been out of things from about
1941 until I came back in 1945. And this included university presi-
dents, ministers of various faiths, newspaper editors, et cetera. And
I went the rounds.

When this Bella Dodd question first came up, or, excuse me. Dr.
Dodd, first came up, I had searched my recollection and, remember
this, that in that period I went to see Dr. Dodd, it was my recollection,
as one of the people on that list to get educated, about teachers with
which I was told — with whom I was told she had some connection as a
secretary — I have since refreshed my mind on it — of the teachers'
union for many years.

Now, my recollection is that I went to see her at her office or at an
office as. Judge Morris, you have just identified her office. So I guess
it was her office at the southwest corner of 6th Avenue and 41st Street
— that I spent a very short time — whatever I did in these visits — 10 or
15 minutes — that we talked about teachers and what they wanted.
And then I went on my way. And that was that.

Now, in an effort to refresh my recollection on this whole situation
about Dr. Dodd, I talked with one of the men who was my political
mentor in that period, that is, in the 1946 period, who is Alex Kose,
the political head in a sense of the Liberal Party. And Alex tells me
the following, which may and may not have any connection with my
visit to Dr. Dodd, but I am stating it because I want to give everything
which I possibly can think of that could have any connection.

He says that I told him in a meeting when we were talking about
the Liberal Party designation — and let me emphasize that it was a
designation — not a nomination, because the Liberal Party was not
even on the ballot — you had to go out and get 3,000 signatures of citi-
zens in the district that were valid to even get on the ballot — and that
was some rough job — but I told him that some friends of mine were
talking about the fact that I ought to try to get an ALP designation
for Congress, because that would help me get elected in a district
which was 2 to 1, 3 to 1 Democratic, the 21st Congressional District.
And I have the details here. That many Democratic candidates and
some Republican candidates had taken the ALP designation, includ-
ing the assemblyman who was running with me in the principal part
of my_ district, Samuel Roman, who was running in the 15th Assembly
District.

That when I told Alex that, he says — now he refreshes me on this,
and I accept it and state it as a fact — he said, "Don't you know Jack,
that this ALP crowd, we have just broken off from, and they are
Commie dominated."

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3011

And then I said, "I want no part of them. I would rather lose the
election. I will not go in for any deals like that."

And that was that.

Mr. Morris. Was this in connection with the 1946 campaign?

Mr. Javits. My first campaign for Congress. I think it might
also be helpful, Mr. Chairman, to detail how I got into trying to run
for Congress. And if I may, I will do that as briefly as I can.

Chairman Eastland. Proceed.

]\lr. jA^qTs. In 1945, when I came back from San Francisco, the
logical thing w^ould have been for me to just go back and practice
law, as I did before, but like so many people who had served, I was
not too happy about that. I wanted to do something else. My brother,
■u ho is the senior paitner in my law firm, asked whether I thought I
might get into politics. He said there might be a chance, at least,
and an entry, if I wanted to go to work for John Goldstein, who is
the Republican Liberal Fusion candidate for Mayor in New York
City, who was a good friend of ours, and whom we all knew as
"Johnny."

I said that sounded interesting to me. I would go and see him.
He was in the Criminal Courts Building. And I said, "I would like
to help you, Johnny, if that is agreeable to you."

And he said it was. And a few days later gave me the job being
head of his research division, which I organized and put together.

In connection with that activity I met the managers of the Gold-
stein campaign, Arthur Schwartz of New York, and Bill Groat of
Queens. I also met a number of the Liberal Party leaders, Alex Rose,
Dave Dubinski, a man named Davidson, who was their secretary, and
many other officials of the Liberal Party.

After the campaign was over, Arthur Schwartz or Bill Groat or
both talked with me about whether or not I might like to run for
Congress in some district which the Republicans never got anywhere
in, anyhow, but which might be interesting to me, if I wanted to break
into active political life. I said I would be interested.

They thereupon told me that the opening was, at the moment, in
the lower East Side where I was born, where there was a special
election. This was, say, December-January, 1945-46. I said I would
look into it and let them know.

I went to see Sam Koenig, a very old friend of mine, and a former
Republican leader of New York County. And I asked him about
running in his district which was the lower East Side District. Sam
said, "You were born there, it is true, but I advise you strongly against
it. You would not get anywhere."

So I went back and told Bill Groat and Arthur Schwartz, "This
doesn't look like a good thing for me. Maybe we could have another."

They then turned up a couple of months later with the idea of
possibly doing something on "Washington Heights.

Incidentally, when I told them this they asked where had I lived.
And I say "them," because I do not know whether it was Arthur
Schwartz or Bill Groat or both or mixtures of different kinds — I
said I had lived in Brooklyn when I went to Boys High School and
finally lived on Washington Heights where I had been in the first

§raduating class of the local high school, George Washington High
chool.

3012 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

A couple of months later, Arthur Schwartz or Bill, I think it was
Arthur, suggested the possibility of a candidacy on Washington
Heights, where also the Republicans never got anywhere and said he
knew a leader up there, Sam Leppler, Republican leader — he would
introduce me to Sam, and that they would try to work this out.

He thereupon did that. And in a meeting in his office on Broad-
way, 1440 or 1441, I met Sam Leppler, and Sam said he liked me,
thought it was a good idea. From there we went on trying to get
the Republican nomination which I will say immediately was not too
tough, because their man had been beaten regTilarly 2 to 1 up there
for more years than I am old.

At the same time, I then told them that I would try for the Liberal
Party endorsement, which might give me a chance, and I then went
to work with Alex Rose, and everything that has happened to me in
a political sense has followed that situation,

Mr. Morris. General Javits, may we get back to the encounter with
Bella Dodd?

Mr. Javits. Certainly.

Mr. Morris. At that time, is it your testimony you did not know
that she was, you might say, openly and notoriously a member of the
national committee of the Comimunist Party ?

Mr. Javits. I have no recollection of knowing that. Judge Morris.
I do not Iviiow what the newspapers showed at the time, either. I
can only tell you this: That it is inconceivable to me that I would
call, for any reason, on a person who was an open and avowed Com-
munist. That is all I can tell you about it.

But I did make the call, and I have explained everything I remem-
ber about it, or can find out by talking to other people who might
have known.

Mr. Morris. Mr. Chairman, just for the record, may we put in two
items here, one being the New York Times article of August 13, 1945,
which contains a report by Bella Dodd of the jSTational Committee of
the Communist Party.

Chairman Eastland. I will let it go in.

(The clipping was marked "Exhibit No. 402" and reads as follows :)

Exhibit No. 402

[The New York Times, August 13, 1945]

Communists Delay Having Own Ticket

foster says main aim now is to help elect "progressives," defeat

"reactionaries"

An indication of what will happen to the Communist vote, now that the party
has been reorganized in this country on active political lines, was given yester-
day by William Z. Foster, newly installed party leader, who said the organization
would not necessarily put its own ticket in the field in each election.

"Our policy will be based upon securing the election of progressive forces and
defeating the reactionaries all over the country," he declared. "We will under-
take to work with the labor movement politically and with all other progressive
forces."

Asked if that meant that the Communist Party would not put up its own
ticket in the State election next year, a necessary .prerequisite to attaining legal
party status in the State, Mr. Foster replied :

"It hasn't been decided yet whom we will support next year, but there's no
question about whom we'll oppose. Dewey, of course."

Since a party must poll 50,000 votes in an election for governor to gain legal
party status, Mr. Foster's words seemed to indicate that the party was willing

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3013

to forego this objective in the interest of defeating Governor Dewey, should he
be a candidate for reelection.

Mr. Foster was interviewed at the final session of the Communist State Con-
vention at Manhattan Center, which adopted bylaws, elected a State Committee
of 59 members and discussed veteran, youth, women's, farm, and reconversion
problems, as well as discussing the coming city election.

CITY ELECTIONS DISCUSSED

A report by Bella V. Dodd, national committee member, showed that the
political line sketched by Mr. Foster was being followed by the party in the
mayoralty and councilmanic campaign this year. In asking the convention to
support the American Labor Party ticket headed by William O'Dwyer, whom
she did not mention by name, Miss Dodd declared the election was one in which
"issues and not the candidates" were to be emphasized.

She derided the candidacy of Judge Jonah J. Goldstein as one made possible
"by a coalition of Dewey Republicans and the Social Democrat Liberal Party."
Newbold Morris represents the "Liberal. Republican, middle-class taxpayer
group," she asserted, adding that his ticket should be called the "No Deal Yet"
slate. She declared it was still too early to say where that party was going, but
that it certainly was not affiliated with the labor movement.

With regard to the councihnanic elections, she said the Communist Party's
"number one job" was to reelect Benjamin J. Davis Jr. in Manhattan and Peter V.
Cacchione in Brooklyn. The party has no candidate in the other boroughs, where
it is throwing its support to "progressive forces." In Queens, for example, Paul
Crosbie, heretofore a perennial Communist candidate for the council, is not
running, and the party is supporting a former council member, Charles Belous,
who is now in the Armed Forces.

The convention itself was closed and the report of proceedings was relayed to
other newspapermen by a reporter from the Daily Worker, official Communist
news organ.

Mv. MoEKis. New York Times of September 19, 1945, and Life
Magazine of July 29, 1946, wliicli shows Bella Dodd in a large i)ictiire,
with all the various Communist leaders.

Chairman Eastland. They will be received,

(Times article referred to above was marked exhibit No. 403 and
reads as follows:)

Exhibit No. 403

[The New York Tinaes, September 19, 1945]

Foster Bids Reds Vote foe O'Dwyer

"supreme issue" locally in war on "imperialism" defined fob 12,000 at

PARTY rally

William Z. Foster, national chairman of the Communist Party, told a cheer-
ing throng of 12,000 at Madison Square Garden last night that private industry
and free enterprise could not achieve full production and employment and that
"it will not be very long until the United States will have to begin nationalizing
its banks and basic industries, as is now being done throughout Europe."

The chairman took the occasion of a rally commemorating the 26th anniversary
of tlie founding of the party in this country to enunciate for the first time before
a gathering of rank-and-file comrades the changed party line — a reversion to
the old revolutionary Marxism and the class struggle of the world proletariat.

Hammering at imperialism, Mr. Foster brought the supreme issue down to
local cases by advocating support of William O'Dwyer as the American Labor
Party candidate for mayor.

PAILS TO name O'dWYER

He did not mention Mr. O'Dwyer by name nor as the Democratic candidate,
but based his appeal on the argument that big business reactionaries and the
men of the trusts were determined to strengthen their hold upon the government
by striving to take over full control of the great city of New York.

3014 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

He was enthusiastically applauded when he said : "But they can and must be
defeated. The people of New York must give the American Labor Party an
overwhelming vote. And as for the Communist candidates, Pete (Peter V.)
Cacchione and Ben (Benjamin J.) Davis, they must be returned to the city coun-
cil with the biggest vote they have ever received."

Mr. O'Dwyer's name, mentioned earlier by Bella V. Dodd, one of the long list
of speakers, brought scattered applause at first, followed by a burst of handclaps.
The former brigadier general, she declared, had the support of the progressive
wing of the Democratic Party, the American Labor Party, the American Federa-
tion of Labor, the Congress of Industrial Organizations, and the powerful
Political Action Committee of the CIO.

An administration elected by "this combination," Miss Dodd declared, "will
afford the best possible assurance for the continuation of New York City as a
progressive center."

The crowd in the garden was reported by Bob Thompson, chairman of the New
York State Communist Party, who presided, as numbering 18,000. However,
there were large patches of empty seats, and the 12,000 figure was considered
more accurate by impartial observers.

DECORATIONS BED, WHITE, AND BLUE

Red, white, and blue bunting furnished the decorations, with two huge Ameri-
can fiags hanging from the rafters behind the speakers' platform. The American
colors were used also on four large signs spaced around the auditorium, only
one of which bore the name of the Communist Party. This one said : "Build the
Communist Party — Fighter for Democracy and Socialism." The others read :
"Reelect Davis and Cacchione — Vote Labor" ; "Greet the GI's With Jobs" ; and
"Smash Jim Crow and Anti-Semitism." The crowd took on the aspect of a
cheering, whistling, and jeering Communist rally reminiscent of prewar days
when Mr. Foster made a telling point or referred to those whose names are
anathema to the party.

Mr. Foster disclosed as he entered the hall that he had been served with a
subpena to appear September 26 before the Congressional Committee Investi-
gating Un-American Activities, successor to the Dies committee.

The successor to Earl Browder was introduced as "the father of industrial
democracy" and the "outstanding Marxist theoretician."

From the outset of his address, Mr. Foster made it clear that the new line of
the Communist Party would be the old cry that all capitalistic governments,
including our own, were imperialist. The Truman administration, he declared,
"is, like every American capitalist government in this period, inherently im-
perialist." He said that to the extent that it carried out pledges of the Roose-
velt policies of United Nations cooperation with other nations, it would receive
the hearty support of the Commiinist Party.

"We would be blind, however," he said, "if we ignored the various imperialistic
foreign policies of the administration."

Among these he mentioned admission of Argentina at San Francisco ; acting
tougli with Russia ; active military and diplomatic support of the reactionary
Chiang Kai-shek government against the Chinese Communists; aggressive
American pressure in the Balkans, allegedly in favor of reactionary elements,
and the trend toward making the military control of Japan purely an American
affair under the ultracouservative General MacArthur.

(The article from Life magazine above referred to was marked
"Exhibit No. 404" and the accompanying picture of Dr. Dodd and

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3015

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3016 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

Exhibit No. 404

The United States Commtjnist Party — Small But Tightlt Disciplined, It
Strives With Fanatic Zeal To Pijomote the Aims of Russia — By Arthub

M. SCHLESIKGER, JR.— AUTHOR OF THE AGE OF JACKSON, ASSOCIATE PROFESSOE

OP History at Harvard

For better or for worse, the Commiuiist Party of the United States is here to
stay. It grevF when the U. S. S. U. was still a gamble ; it will grow faster as the
gamble pays off, and it will persist if repressive legislation forces it underground.

The American Communists never despaired even in the intense and comic days
in the twenties, for they were certain they were on the highroad of history. Now
the war, transforming the U. S. S. K. from a remote and doubtful experiment into
the second mightiest power on earth, has placed upon the CPUSA the historic
responsibility of serving as the workers' vanguard in the bastion of capitalism.
The Center, as party members call the smoky brick headquarters on 12th Street
in New York City, controls an active and disciplined following through the
country. With history breathing down their necks. Communists are working
overtime to expand party influence, open and covert, in the labor movement,
among Negroes, among veterans, among unorganized liberals.

Tlie problem of estimating soberly the extent and nature of Communist influ-
ence has been thoroughly confused by the Communists and their sympathizers,
who resist any attempt to isolate and identify Communist activity. It has been
equally confused by Mr. Dies, Mr. Rankin and their various un-American com-
mittees in their wild confidence that practically everybody who opposes Franco
or Jim Crow or the un-American committee is a Red.

The American Communist Party originated in 1919 with the split of left-wing
groups from the Second, or Socialist, International, following the Russian Revo-
lution. The crash, which the party interpreted as the long-awaited breakdown
of capitalism, provided Communists with their first real opportunity. They
worked tirelessly among the unemployed, the hungry, and the homeless ; among
members of the middle class who felt a sense of guilt or confusion over the eco-
nomic mess, and among intellectuals who feared the worldwide rise of fascism.
In 1934 the party claimed 25,000 cardholders; in 193G, 40,000; in 193S, 75,000.

The Moscow trials of 1936-38 and the INIolotov-Ribbentrop pact of 1939 were
body blows, and the party lost heavily. Earl Browder's v^artime policy of sub-
ordinating everything to national unity brought membership back to 80,000 by
1944, mostly from the middle class ; but William Z. Foster's current radical
program has lost many of the Browder adherents. The spring membership
drive may have raised the total to about 65,000 — far short of the 1946 goal of
100.000.

The party has always had a tremendous turnover. Thus you have a hard
core of perhaps 10 percent who have been members for 15 years, a fairly solid
ring of 30 or 40 percent who have been in from 2 to 10 years and a vaporous
penumbra of people who join the party because of some local strike or lynching
(or clambake), lose interest and are dropped when they fail to pay dues.

The organization would fill Boss Hague with envy. You must be 18 years
old and duly certified by a member before you are admitted into a local club.
Cryptic communications bid the 20 to 50 members to regular meetings for
instructions and assignments. As a matter of course, you are expected to work
as part of the Communist bloc in outside organizations and thereby help in-
crease party influence far beyond its membership. The local clubs are the bot-
tom of a chain of command which extends through county and State, or section
and district committees, to the National Connnittee and the National Secretariat
and finally to Moscow.

Party discipline is not, for the most part, a matter of making people do
things they do not want to do. The great majority of members, for reasons
best understood by psychiatrists and dictators, want to be disciplined. The
party fills the lives of lonely and frustrated people, providing them with social,
intellectual, even sexual fulfillment they cannot obtain in existing society. It
gives a sense of comradeship in a cause guaranteed by history to succor the
helpless and to triumph over the wealthy and satisfied. To some it gives
opportunities for personal power not to be found elsewhere. Communists are
hapi)y to exchange their rights as individuals for these deeper satisfactions;
and absorption in the party becomes in time the mainspring of their lives. The
appeal is essentially the appeal of a religious sect — small, persecuted, dedicated,
stubbornly convinced that it alone knows the path to salvation. To understand

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3017

the Communists, you must think of them in terms, not of a normal political
party, but in terms of the Jesuits, the Mormons, or Jehovah's Witnesses.

It is hard work being a Communist, which is one reason the turnover is so
great. But, once fully committed, the Communist's world becomes totally the
world of the party. The clause in the party constitution forbidding "personal
or political relations with enemies of the working class" does not have to be
invoked often, for most Communists voluntarily cut out their nonparty friend-
ships and activities. One member, explaining why he had made the party the
beneticiary of his insurance policy, said, "The reason I did that was, in the
first place, I am not married and have nobody to leave anything like that to,
and in the second place the Communist Party is more in the world to me than
anything else is."

The total assimilation of the individual to the party creates selflessness and
consecration. Like a platoon isolated behind enemy lines, the Communists
perform marvels of daring at their leaders' word, each acting as if he embodies
the impersonal force of history. Their fearlessness has impressed thousands of
workers with the invincible determination of the party.

But the price of enjoying such intimate relations with history is an intensive
personal supervision which can only be duplicated in a religious order or in a
police state. Gossip becomes a form of healthy criticism, and party dossiers go
into the minutest detail of private lives. Most members accept this all-encom-
passing control. In the end, they become so involved socially and psychologi-
cally that the threat of expulsion strikes them as excommunication would a
devout Catholic. It is enough to keep them in line long after they begin to
develop intellectual doubts about the infallibility of Russia.

In its own eyes the party has two main commitments : to support and advance
the U. S. S. R., and to promote the establishment of socialism in the United
States. The second is necessarily subordinate to the first because Communists
regard the preservation of the workers' state in Russia as indispensable to the
spread of socialism through the world. The short-term disregard of American
working-class needs in the interests of Soviet foreign policy will, they feel, thus
be to the long-term benefit of American workers.

Not all American workers see it that way, and the conflict between the re-
quirements of Soviet foreign policy and the requirements of the American
domestic scene has weakened the CPUSA. The most impressive part of the
Communist record in this country, indeed, has been its courageous activity
against local injustice and exploitation, and its least impressive part has been
its subservience to Soviet foreign policy. Yet the party leadership has never
hesitated to stifle its grassroots initiative and squander its grassroots assets
in order to whip up American backing for Soviet adventures abroad. Indeed,
the dependence of the functionaries on Moscow for personal power and ulti-
mately for livelihood makes them the unquestioning servants of the Soviet
Union. Partly as a cause and partly as a result of this subservience, the top
leadership of the pai'ty has become essentially bureaucratic. It is in the hands
of a small clique in New York. The National Secretariat — consisting of Foster,
Eugene Dennis, John Williamson, and Robert Thompson — operates from ofiices
on the ninth floor of the Center, far removed from the rank and file of the
party.

The party, for a long time billed as the American section of the Communist
International, has always received dii-ectives and in the past some funds from
the U. S. S. R. via courier. Probably Moscow's most effective control has been
through Comintern representatives — the famous "C. I. reps." The American
party has never been important enough in Soviet calculations to risk clandestine
contacts between the Washington Embassy and the party leaders ; and simple
skepticism about the party's security explains why no one in Moscow would
have dreamed of giving Earl Browder a preview of the pact w^ith Hitler. Dur-
ing the war there had to be greater reliance on conditional reflexes, prodded
by Pravda or War and the Working Class or the Moscow radio. Direct contact
has undoubtedly been reestablished by now.

The relation of Moscow to the CPUSA may be compared to that of a football
coach to his team. The team has its quarterback to run it on the field, its set
of plays, and its general instructions. The coach may occasionally send in a
substitute with new instructions or a new quarterback or an entire new team,
but he is not likely to be giving play-by-play orders. Since the team has com-
plete confidence in the coach, it resents cracks from bystanders about taking
orders from outside ; after all, are not the interests of the coach and team
identical?

72723—57 — pt. 43 2

3018 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

Because the party is numerically insignificant, local political realities do not
chasten its passion to please Moscow. Consequently it always overinterprets
its notion of what Moscow wants. When the invasion of Russia brought on the
national unity program, the Americans, for example, developed the Browder
doctrine of indefinite collaboration with capitalism and the Harry Bridges doc-
trine of postwar extension of the no-strike pledge. When the end of the war
revived Communist militancy, the Americans, overdoing it as usual, leaped on
Browder with hobnailed boots, rubbed his face in the dirt, and kicked him out
of the party.

Browder had been leader of the party for 15 years. He had steered it from
anti-Roosevelt militancy to pro-Roosevelt popular front to anti-Roosevelt isola-
tionism to pro-Rooseveit war unity, all without a quiver of distaste. But the
experience of the wartime coalition gave him the vision of an Americanized
Communist Party working with its fellow American parties to solve the urgent
questions facing the Nation. To this end he began a policy of naturalizing
the party, relaxing its discipline, and moderating its sectarianism. He trans-
formed the wartime tactic of national unity into a postwar strategy and argued
the possibility that progressive capitalism, to save itself, would embark on
policies favorable to the workers at home and to the Soviet Union abroad.

THE OUSTING OF BROWDER

In April 194.5, however, Jacques Duclos of the French Communist Party, for-
merly high in the Comintern, published his celebrated repudiation of Browder-
ism. The Duclos article was probably using the CPUSA as a scapegoat in order
to set down a new line for the more important Communist Parties of Britain,
France, and Spain, then still flirting with rightists like Churchill, de Gaulle,
and Gil Robles. But publication of the attack by the New York World-Telegram
panicked the American Communists into more drastic action against Browder
than Moscow probably contemplated.

There followed recriminations of intense bitterness. Browder accused the
Secretariat of circulating charges against him which "ranged the whole gamut
of social and political crimes excepting perhaps that of murder." One member
even proposed that Browder be given a job scrubbing floors in the Center. After
refusing to give the National Committee the names of all party members to
whom he had spoken since the July 1945 convention, Browder was uncere-
moniously expelled in February 1946. His amazing "Appeal * * * to the
members of the CPUSA!" concluded, "All effective interparty democracy has
been destroyed." Two months later he was on his way to Moscow.

Browder could argue in Moscow that his policy alone stood a chance of pre-
venting a third war. The "adventurism" and "sectarianism" of the Foster policy,
with its projected third party, would only split the American progressives and
bring the anti-Soviet i-eactionaries to power. Even Duclos, for all his tough
talk, allows the French Couununist Party to join in governments led by Social-
ists and now by Catholics and indeed recently chided the American Communists
as unrealistic. "You have strikes all the time. Here, we Coumiunists are the
strongest party in France, and we have no strikes at all. * * * We know the class
struggle is real, but we know, too, that this is the time for unity and so we do
not strike." Duclos sounds here like an unregenerate Browderite — or maybe the
line is changing again. ("They have failed Karl Marx," observed a wit, "but
remain faithful to Harpo.")

In any case, Browder's 5-year contract to represent Soviet publishing houses
in the United States does more than simply keep him on the payroll in antici-
pation of a new shift in policy. It provides him with an ideal channel to the
Soviet Union and thus gives him a potential whip hand over Foster. For the
time being, however, Foster and the party may well pursue one line in the
political field while Browder, with unmistakable Soviet approval, pursues an-
other in the field of cultural relations. The U. S. S. R. has kept two divergent
lines in operation on other occasions (as toward Germany during the war).

The present Communist Party is thus a throwback to the party of the twenties
with both its sectarianism and its intransigeance. Its main objective is by poli-
cies of disruption and blackmail to avert a war with the Soviet Union or to
make sure, if war comes, that the United States is badly prepared to fight it.
Eugene Dennis writes, "We Communists are * * * the bitterest opponents of
the projected plans of imperialism for a criminal war against the great working
class democracy — the U. S. S. R." The party spells this out : defeat the "vast
and menacing armaments program" ; defeat "the imperialist proposals for uni-

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3019

versal and compulsory military training" ; "speed demobilization" ; internation-
alize the atomic homl).

From the start the party's operations have been conspiratorial, its activities
largely clandestine. Since it has no mass base in the United States its possi-
bilities of open influence on national policy are limited. Moreover, early perse-
cution, as well as Comintern instructions, confirmed its belief that, as a small
and ill-armed band operating in a hostile environment, it was justified in using
any methods to advance the cause.

Because clandestine modes of operation are utterly foreign to American
political life, many Americans dismiss them as wild fabrications. They are
naive to do so. The testimony of Harold Laski on this point is of interest, since
Communists can hardly write him off as a red-baiter or reactionary. "The Com-
munist Parties outside Russia act without moral scruples, intrigue without
any sense of shame, are utterly careless of truth, sacrifice, without any hesi-
tation, the means they use to the ends they serve. The result is a corruption,
both of the mind and of the heart, which is alike contemptuous of reason and
careless of truth."

SECRET MEMBERS AND FELLOW TRAVELERS

The party works both through secret members and through fellow travelers.
The secret members report directly to a representative of the national com-
mittee; they have no local afliliations, are exempt from petty party discipline
and are unknown to most party members. Their party cards usually are held in
aliases, so that in the files they appear as "John Smith" with P. N. (party name)
noted beside it. Fellow travelers are those who offer their cooperation but avoid
actual membership.

Underground cells under party direction became active in Washington in the
thirties ; some of their members are still well placed in the administration. Ex
party members name several Congressmen as reliable from the party point of
view, and well-known Communist sympathizers are on the staffs of some Sena-
tors and congressional committees. The Dies-Rankin nonsense has hopelessly
obscured the problem of Communists in Government, however, by smearing so
many non-Communist liberals as Communist that most such allegations tend to
leave Government officials glum and immobile.

The great present field of Communist penetration is the trade unions. The
national leadership of certain CIO unions — the National Maritime Union, the
International Longshoremen's and Warehousemen's, the American Communica-
tions Association, the United Office and Professional Workers, the United Elec-
trical Workers, the United Public Workers, the Transport Workers, the Fur and
Leather Workers — can be relied upon to follow the line with fidelity. Com-
munists are active in the United Auto Workers in the hope of overthrowing the
anti-Communist leadership of Walter Reuther, and they are even boring into
Phil Murray's own imion, the Steelworkers.

All discussions of this question in the CIO revolve around the ambiguous figure
of Lee Pressman, its cagey and capable general counsel, long known as a fellow
traveler. Phil Murray has observed irritably that he would not remove Press-
man until he was shown proof that Pressman was a party member. No one has
-ever produced proof convincing to Murray ; and Pressman, through his ability
and his skill in personal relations, has made himself nearly indispensable to the
CIO president. His personal machine through the CIO and through Washington
is formidable. Of the Washington legislative representatives of ClO unions,
12 or 14 are believed to be party members ; 8 or 10 play the party line, and only
about half a dozen are clearly non-Communist. This means that when an issue
like the British loan comes up, which the CIO officially endorsed but which the
CPUSA opposed, lobbying is half-hearted and ineffective, whereas the question
of a Soviet loan would have had the same group working day and night.

The Communists spread their infection of intrigue and deceit wherever they
go. The project of a maritime federation, for example, created the interesting
problem whether Harry Bridges or Joe Curran would be top dog. The Com-
munists, evidently regarding Bridges as smarter or more dependable, began a
■quiet campaign to whittle Curran down without quite destroying him. The re-
sult has been an atmosphere in the higher level of the N. M. U. in which the
Borgias would feel at home.

Second only to the unions is the drive to organize the Negroes. As the most
appalling case of social injustice in this country, the Negro problem attracted
party interest from the start and, with the Scottsboro case. Communist prestige
among the Negroes rose tremendously. In countless ways across the country

3020 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

Communists performed commendable individual acts against discrimination.
The ninth floor, however, continued to view the race problem mainly as a valuable
source of propaganda. Angelo Herndon, a Negro, was sentenced to 20 years in a
Georgia prison for passing out Communist literature. When he was finally freed,
after nationwide agitation, he was rushed to New York. A group of Communist
big shots met Herndon, an intelligent, light-skinned Negro, at Penn Station. In
the cab on the way to Harlem, Herndon heard Anna Damon, of the International
Labor Defense, a tup party leader, remark that it was a pity he was not blacker.

With the attack on Russia, the Communists soft-pedaled the race question.
The party is currently trying to make up the ground thus lost by exploiting the
riot in Columbia, Tenn., as it exploited the Scottsboro affair and by sinking
tentacles into the National Association for the Advancement of Colored People.

The third objective is what the Communists call "mass organizations" — that
is, groups of liberals organized for some benevolent purpose, and because of
the innocence, laziness, and stupidity of most of the membership, perfectly de-
signed for control by an alert minority. One method is to take over an existing
organization. The Independent Citizens Committee of the Arts, Sciences, and
Professions, for example, began as a brilliant contribution by actors and
writers to the Roosevelt campaign in 1944. For various reasons the ICC
was kept alive ; its celebrities maintained their membership but not their vigi-
lance ; and, though most of the local chapters are free from Communist control,
the national organization on most outstanding issues of foreign policy has
backed the Russians or kept quiet.

The ICC did not, for example, throw its weight into the fight for the
British loan, while it has cheerily identified itself with a cause whose chief
organized backing in this country comes, for some mysterious reason, from the
Communist Party — the national independence of Puerto Rico. In spite of
needling by newspapermen, Harold Ickes, ICC's executive chairman, has
publicly denied any taint of party influence. But at the New York State Com-
munist convention in August 1945, a member of the cultural section of the
party boasted, "We built the Independent Citizens Committee * * * and it was
a great political weapon."

An even clearer case is the National Committee to Win-the-Peace. Many
admitted Communists and fellow travelers helped sponsor the opening confer-
ence last April in Washington, where speeches and resolutions denounced all
the failings of Britain and the United States while refraining from even the
mildest criticism of Russia. The conference demanded "free access to informa-
tion" in Indonesia, but not in Eastern Europe. It set impossible conditions
for the British loan but came out unconditionally for loans to the U. S. S. R.
A hundred other fronts, youth organizations, foreign language groups, and
newspapers disseminate bits and pieces of the Communist line.

If you live in New York or Los Angeles, this complex and largely concealed
Communist activity may have a considerable impact. A frenzied "popular
front" atmosphere has arisen in both cities. The party has played with great
success upon the hopes and anxieties of New York's racial groups ; it is powerful
in the Greater New York Industrial Union Council of the CIO and even has a
bridgehead in the New York City Council. In Los Angeles communism flour-
ishes along with the other weird cults. It has made particular headway among
the intellectuals of Hollywood, who find in the new faith a means of resolving
their own frustration and guilt.

The result is to create a situation where a writer, a speaker, an actor, if he
says the correct things, can rely on a united and hysterical response. Many
people live upon the roar of the crowd, and the temptation is irresistible to
court that roar. College professors are delighted to share a platform with
actresses or entertainers from Cafe Societj' Uptown, and actresses are flattered
by appearing on the same platform as college professors.

The question remains whether this activity, anonymous, highly ramified,
devoted to the interests of a foreign power, constitutes a fifth-column menace to
the United States. No American Communist has publicly gone so far as Luis
Carlos Prestes, leader of the Brazilian Communist Party, who promised to start
a partisan movement in case of war between Brazil and Russia. Yet Canadian
Communists in the Gouzenko spy case stated under oath that they had a
loyalty which took precedence over their own country. Herbert ilorrison
of the British Labor Government, pointing out that Communists had been
involved in more than one case of espionage, added, "I personally would not
feel comfortable * * * sitting in the same Cabinet where members of the
Communist Party were participating in our discussions with access to secret
documents."

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3021

Any fully logical American Communist is obligated to regard the interests of
Soviet Russia, which he has succeeded in identifying with the interests of the
international working class, as his highest loyalty. If the is.sue were ever
pre.sented in this form, though, many fellow travelers and some party mem-
bers would quickly get off the train. A great reason for Communist success
has been the party's skill in presenting pro-Russian demands under cover of
legitimate domestic issues. While the espionage threat cannot be shrugged off,
it" cannot be solved ))y witch hunts or by un-American committees. It can
safely be left to the competent hands of the FBI.

Does the Communist Party present a revolutionary threat to this country?
This is the specter raised so fervently by Dies and Rankin. It should be said
in the first place that there is nothing un-American about revolution. James
Wilson, who helped draft the Constitution and was a greater expert on these
matters than Dies, wrote, "A revolution principle certainly is, and certainly
should be taught as a principle of the Constitution of the United States." The
Dies definition of un-Americanism would include George Washington, Thomas
Jefferson, John Adams, Robert B. Lee, Jefferson Davis, and Scarlett O'Hara —
all rebels, disloyalists, and opponents of constituted authority.

A real revolutionary party in this country might be a good thing and, if con-
ditions ever are allowed to develop which would make a revolution successful,
we deserve to have one. Jefferson thought one should come about every 20 years.
But to call the CPUSA a revolutionary party is an insult to the American
revolutionary tradition. Its psendorevolutionary activities will be turned on
and off as the interests of an external power dictate. When American and Soviet
policies coincide, the CPUSA will tend toward the right ; when they diverge, to
the left.

The Communist party is no menace to the right in the United States. It Is
a great help to the right because of its success in dividing and neutralizing the
left. It is to the American left that communism presents the most serious
danger.

On the record, Communists have fought other leftists as viciously as they
have fought fa.scists. Their methods are irreconcilable witli honest cooperation,
as anyone who has tried to work with them has found out the hard way. The
left in Europe has known this for a long time, but, by the clandestine character
of their operations and by the cynical denial of party affiliation, Communists
have succeeded in hiding their true face from American liberals. They have
stymied honest discussion of the Communist issue by raising the cry of "red-
baiting"' and "Rankinism." They have imposed a false "either-or" definition
of world issues by which anyone withholding approval from the U. S. S. R. is
pronounced pro-Fascist.

In its larger aspects the Communists are engaged in a massive attack on the
moral fabric of the American left. The party has sought systematically to
enforce the notion that writing must conform, not to the facts, not to the personal
vision of the author, but to a political line. The substitution of any external
standard for the truth as the writer finds it can result only in confusion and
dishonesty — in the destruction of moral clarity and intellectual integrity.

Albert Maltz, the novelist and Hollywood writer, recently wrote a piece sug-
gesting that maybe Communist critics had employed political standards over-
mechanically ; that the New Masses, for example, had panned Watch on the
Rhine as a play but praised it as a film because the attack on Russia had inter-
vened, and that writers like James T. Farrell and Richard Wright, even if
anti-Stalinist, still might make valuable contributions. Isidor Schneider, liter-
ary editor of the New Masses, sent ]Maltz a note of approval and printed the
article.

All hell broke loose. Week after week in the New Masses and Daily Worker
Howard Fast, Mike Gold, Robert Thompson, even Foster himself denounced
Maltz as a Trotskyite or a Browderite. Maltz's reply casts pathetic light on the
Communist psychology of confession. Folding completely before the party dis-
cipline, Maltz even castigated his sympathizers who had objected to the abusive
tone in which correction had been administered. "What should be clear is that
my article made fundamental errors. * * * a serious and sharp discussion was
required."

Maltz's protest had been a feeble attempt to free writing from political con-
trol. Already the wildly enthusiastic Communist claque for certain types of
phony folk art has lowered the standards of many Americans not themselves
party members or sympathizers. The vogue of "Ballad for Americans," for
example, or the radio plays of Norman Corwin, is a current byproduct of this
general corruption of taste.

3022 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

As a college professor named Frederick L. Schuman recently put it with naive
simplicity, "In 1946 all utterances and acts of politicians and publicists * * *
will ultimately be weighed * * * in terms of this stark and simple issue: do
they contribute to Ainglo-American-Soviet unity?" Facts, truth, and honesty
become side issues.

It is imperative for the American liberals, if they wish to avoid total bank-
ruptcy, to get back to a sense of moral seriousness and of absolute devotion to
the facts. The Union for Democratic Action is one leftwing group which has
sought to combat the confusion and corruption coming inevitably in the wake of
Communist penetration. Its national chairman, Dr. Reinhold Niebuhr, once ob-
served, "I do not believe in the slogan, 'My country, right or wrong' — particularly
when it isn't even my country." The ablest members of the Washington bureau
of the New York newspaper "PM" have resigned, charging that Ralph Ingersoll
has "continuously yielded to Communist pressure." The president of the United
Furniture Workers, resigning in protest against the capture of his union by Com-
munist invaders, said, "These people are dangerously vicious. Anyone who goes
along with them on the theory that this is the liberal thing to do is a fool. I
know because I have been one."

The recent fight for control of the American Veterans Committee shows that,
when they are alert to the situation, liberals can lick the Communists. But until
the left can make the Communists and fellow travelers stand and be counted, its
energies will be expended in an exhausting warfare in the dark. The Com-
munists will not be able to maneuver the left into a positively pro-Soviet pro-
gram. But they may well prevent the left from taking positive action which
does not suit the party line. Communist influence immobilizes the United States
left.

The Communists are looking to a next depression as their happy hunting
ground. The way to defeat them is not to pass repressive legislation or return
Martin Dies to public service, but to prevent that depression and to correct the
faults and injustices in our present system which make even freedom-loving
Americans look wistfully at Russia. If conservatives spent more time doing this
and less time smearing other people who are trying to do it as Communists, they
would get much further in the job of returning the CFUSA to its proper place
beside the Buchmanites and the Holy Rollers.

Mr. Javits. I will say, if you will allow me, that I saw Dr. Dodd
before that July date. I would think that the nominations, pri-
mary, and so forth, wei^e pretty well crystallized along about May-
June of 1946.

Mr. Morris. Did you, or did Murray Baron, the chairman of the
Liberal Party in New York County, make clear to you on several
occasions that you would not be allowed to take the Liberal Party —
retain the Liberal Party designation, if you had an ALP designa-
tion?

Mr. Ja\t:ts. This meeting I referred to with Alex Rose, again in
an effort to refresh my recollection, I talked with Mr. Baron, who
was very active in the Liberal Party at that time. He tells me he
attended that meeting, and remembers that I was so told.

I have no doubt that on that occasion and other occasions the
Liberal Party made it very clear to me they were completely at war
with the ALP. I would assume, Judge, too, that having run on this
ticket four times, they looked me over very carefully with X-ray
eyes, and were pretty well convinced that I wouldn't be interested in
the ALP.

Mr. Morris. Did you not tell Murray Baron, in connection with
the 1946 election, that you could have either the secret support of
the ALP or they would remain neutral, depending on what you
wanted ? Mr. Baron has told us that.

Mr. Javits. I wouldn't challenge Murray Baron because I have
the highest regard for him.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3023

I have no such recollection, and I would like to point out to you
that the ALP candidate, a man named Connolly, tried to win the
Democratic Party nomination in an election, so the facts are not
consistent with that proposition. They did their utmost to knock
me o& in 1946 and 1948, when they ran Paul O'Dwyer, and he almost
defeated me.

Mr. INIoRRis. Wasn't the problem to keep the ALP and Democratic
candidate — the ALP and the Democrats from endorsing the same
persQ]!, because they tooether Avould be an insurmountable block?

Mr. Javits. This fellow Connolly ran in the Democratic Party
primary. You couldn't do any more than that. He tried to capture
that.

]Mr. Morris. Subsequent to 1946, didn't you again tell Murray
Baron that you had word from a man named Louis Merrill who was
one of the leaders of one of the Communist-controlled unions, that he
would help, if you wanted his assistance, in the forthcoming 1948
campaign?

Mr. Javits. Again, the last thing in the world I would want to do
is challenge Murray Baron, who is a good friend of mine, and who
has been swell.

Incidentally, Murray Baron was one of the principal factors in
winning the 1948 campaign for me. He campaigned personally in
Inwood, which is a very tough part of my district, as a Liberal
Party member. This was almost running a physical risk. I just
remember no such conversation.

I am sure I reported to Murray and to Alex Kose every conceiv-
able political fact which came to my attention, because they were the
people I looked to to guide and help me.

]NIr. Morris. He has told us that this particular conversation about
Merrill took place in a taxicab. You cannot recall that?

Mr. JA^^TS. I am sorry. I wish I could. I can only give you the
frame of reference.

May I just add one further word, which my brother just handed
me a note of, and I remember it, and I would like to state it for the
record :

Another one of the men who lielped me get the Liberal Party nom-
ination and support was Eugene Lyons.

Mr. Morris. Now, General Javits, in connection with the 1948
campaign, wasn't there a discussion at the time that if the Democrats
and the ALP would endorse the same candidate, the combination of
the Republican and Liberal votes would be overcome by such a com-
bination, and at that time did you not take up with Baron and with
Alex Rose the possibilities of your having ALP support in the 1948
campaign ?

Mr. JA"^^TS. In the 1948 campaign there was unquestionably a con-
versation about the fact that this was a very tough combination to
beat, and that we probably might not be able to beat it, but I recall
no discussion about my taking ALP. On the contrary, I am very
clear, aside from the muddle I may have been in in the 1946 cam-
paign, when I was new on the job, in a sense, I had no doubts about
the ALP thereafter.

By 1948 I had served 2 years in Congress, and I had encountered
ALP doctrine in the shape of its Congressmen here.

3024 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

Mr. Morris. It is your testimony that you did not ask to have ALP
support ^

Mr. Javits. I ha\'e no such recollection, Judge. The only thing
one can do, like myself, who does so many things, is to try to get a
recollection in the frame of reference, and this, it seems to me, to be
absolutely inconsistent with everything I was doing at the time.

I will tell you this: You can explore any number of things with
your political confidants, and what recollection they would have
about them, and I would have about them, would be very different,
and yet one might not necessarily contradict the other. I would not
contradict Murray Baron. I know the man and have the highest
regard for him.

Mr. Morris. Did the Liberal Party — Does a man, Sam Roman,
work for you ?

Mr. Javits. Sam Roman is the assemblyman of the Fifteenth As-
sembly District who ran with me four times, the man I referred to
before, and he is now one of my executive assistants.

Mr. Morris. Did the Liberal Party object through you to a tribute
that Sam Roman paid to Rose Russell, the legislative representative
of the Teachers' Union, on November 20, 1954.

Mr. Javits. Judge, I cannot — — •

Mr. Morris. The protest was presumably because he was your
executive assistant and that he should not •

Mr. Javits. November, 1954 he was not my executive assistant.
I took office as attorney general in January, 1955, and in November,
1954, he Avas a defeated assemblyman.

Mr. Morris. Was there a protest, did they protest to you that a
man who was associated with you should publicly commend Rose
Russell, was there such a protest?

Mr. Javits. I have no recollection of it, but I do recall that I had
to relegate Sam Roman to the Liberal Party to work out his own
fortunes on occasions for one reason or another, whatever they might
be, but I think it would be very unfair to Mr. Roman for me to say
anytliing about that in this context. I just don't know. I don't have
any recollection whatever of any such discussion, but he didn't work
for me at the time, as I just made clear.

Mr. Morris. "Well, General Javits, the question was based on the
committee evidence and information that we have.

Mr. Javits. Of course.

Mr. Morris. As you know, as we made clear from the very begin-
ning, we were having this hearing only to afford you an opportunity
to give your version of the committee evidence and information.

Mr. Javits. Certainly. Thank you. Judge.

Mr. Morris. There are many things, Senator, that we could go into,
that are not particularly important. We cannot trail this thing out
to the very end. But what we have presented to you. General Javits,
is for the most part the committee information and evidence which
has been accumulated in the record of the committee during the course
of our current investigation of Communist penetration into the politi-
cal parties, and in no sense do we present this in any context other
than in connection with your request for a hearing today.

Mr. Javits. It is my duty as Attorney General, as a citizen, as a
former Congressman, to come to you and do what I am doing here.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3025

I am deliohted to see this committee handlinja; matters with such
meticiilousness and in any way I can contribute information, I want
to, and if you feel I have left anything unsaid and you want to question
me again,' go to it. I will be very pleased to do so.

I woukthope that before we are tlirough with tlie hearings, you
will allow me, and I know it is asking a great deal, to introduce into
the record something of which I am very proud, my congressional
record, which consists of letters and reports entered in the Congres-
sional Record which I wrote twice a year, so that they were not done
in preparation for this hearing, to all my constituents, where I stake
my political neck, and I think, Mr. Chairman, with all modesty, that
it represents an effective anti-Connnunist struggle, which I put up here
as a Congressman and as a member of the Foreign Affairs Committee
of which I am very proud, and I would consider it a great privilege
from the Chair if the Chair would allow me to do that.

Chairman Eastiand. Yes, I will permit you to place that in the
record.

Mr. Jawts. Tliank you.

(The reprints from the Congressional Record were marked "Exhibit
No. 405" and follow in chronological order:)

[Congressional Record, July 24, 1947, pp. 10085-10087]

SPECIAL ORDER

The Speaker. Under previous order of the House, the gentleman from New
York (Mr. Javits) is recognized for 10 minutes.

The Chair might state for the information of the House that the minority
leader states that his objection will not apply to anyone who has a special
order, as these special orders were granted before he announced his position.

The 80th Congress, 1st Session, Record and Forecast

Mr. Javits. Mr. Speaker, the 1st session of the 80th Congress is drawing to
a close and it is now well to review what has been done during the session, so
that we can best see what remains to be accomplished during the coming mo-
mentous legislative year of 1948, before the 80th Congi-ess passes into history.
The inscription on the National Archives Building in Washington is "What Is
Past Is Prologue." As a Member of Congress I have learned to appreciate the
wisdom and significance of those words.

The 80th Congress had innumerable problems, both domestic and foreign,
to cope with. It has done many things ; much still remains to be accomplished.
When I campaigned in 1946 I had as my twin slogans "Peace and Jobs." Look-
ing back on this session, I believe we have been greatly preoccupied with peace,
because of our activities in the field of foreign affairs. Much time has been
given to appropriations for the costs of Government, to labor legislation, to
budget policy and taxes, and to wartime controls of rents, credit, and other
commodities; but our hearts have been especially troubled by the problem of
peace in a postwar, torn world.

As a member of the House Committee on Foreign AfCairs, I have been privi-
leged to be intimately concerned with every aspect of the foreign-affairs prob-
lems which came before us. I believe that we have already made the greatest
of our policy decisions in peacetime, and that though there will be, and should be,
much debate on contents and procedure, and on other practical details of enor-
mous significance, the basic issue has been resolved by this Congress. That
resolution dedicates the United States to three principles in foreign affairs :

(o) That we will particpate in the world's reconstruction with our vast tech-
nical and material resources and with our skills and leadership ;

( 6 ) That we shall insist from those we aid on self-help first, and on practical
judgments and practical solutions equivalent to those we call good business ; and
(c) That we will practice applied democracy in our own activities and will
encourage it in the nations with whom we deal.

3026 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

By enacting the Greek-Tnrkisli assistance bill, the foreign relief bill, the
resolntion to authorize United States participation in the International Refu-
gee Organization, and finally by passing appropriations of almost $1,500 million
to implement these and other foreign-affairs measures, this Congress decided
that it was not isolationist, that the United States had a major role to play
in the world by which peace and economic stability might be obtained, and that
the Congress was determined that the United States should play it.

But these accomplishments of the first session still leave much vital and neces-
sary legislation in the field of foreign affairs to come. The Marshall plan is only
a concept now, but by the time the Congress reconvenes on January 6, 1948, it
is likely to be a very real thing. For we shall then have in hand the plan for
their own economic rehabilitation of the 16 western European nations now meet-
ing in Paris, and the results of the investigations of the Committee on Foreign
Affairs and of the select committee on the needs of reconstruction overseas
and on our capacity to meet them. Incipient in and running through the prob-
lems of world reconstruction will be the twin problems of what to do with our
defeated enemies, Germany and Japan.

During the next session the Congress will have to deal with more problems in-
volving foreign affairs than ever before in our peacetime history. Much of the
work done by various agencies of the United Nations will come before us for
approval. The extension of the reciprocal trade agreements program and the
role the United States is playing in the International Trade Organization will
come up for discussion. We shall be called on to decide on joining the World
Health Organization.

Great matters of hemisphere security will also come up for consideration. The
House Committee on Foreign Affairs, after extensive hearings, reported favor-
ably on H. R. 3836, a bill providing for inter-American military cooperation
through standardization of military equipment and military training among the
other American Republics and Canada. It will be brought up and acted upon
in the next session. By the time we again convene two momentous inter-Ameri-
can conferences will have been held. The conference at Rio de Janeiro, often
postponed and required to be held by the Act of Chapultepec (adopted at the
last Inter- American Conference held in Mexico City in March 1945), to consider
an inter-American treaty whereby the American states may meet in common,
"threats or acts of aggression against any American Republic" ; and the con-
ference at Bogota on inter- American military defense.

If these great challenging problems are not enough we have such issues as
Palestine and the ferment in the Middle East to contend with, the problem of
civil conflicts in China and of the new governments in India and the whole move-
ment of pan-Asia. In Palestine, especially, the issue between international
justice and decadent colonialism are sharply drawn. If in the face of solemn
international covenants undertaken to the Jewish people — now martyred and
desperate in Europe — the illegal barriers to full immigration into Palestine can-
not be made to come down, then the cause of peaceful justice in the world has
suffered a mortal blow. The United States is a party to this international
covenant and will count heavily in the result, if it demonstrates a willingness to
implement the United Nations recommendations on Palestine. We must see
that our historic Palestine policy is translated into action. As is well known to
this House, I have been working hard to bring this action about.

Important international financial problems will be before us dealing with
the operations of the world bank and of our own Export-Import Bank. The
question of the St. Lawrence seaway is likely to arise — a matter which has
been pending for 10 years and is critically important to the prosperity of millions
of people around the Great Lakes and of great significance to Canada and other
countries.

Yet our main challenge is likely to be the working out of our relations with
Russia and with her satellite countries of Eastern Europe. For unless we can
build a peaceful and prosperous world, and that is likely to mean one in which
the Soviets are also included, we can have no real security at home ; and we
must labor under enormous appropriations for our Military Establishment,
the utilization of much manpower for this purpose and the uncertainty of liv-
ing in a dangerous and explosive world. The greatest ingenuity and patience
will be called for from us. We must, I am convinced, stand firmly by our prin-
ciples of individual freedom, respect for human rights, the sanctity of contracts
and international agreements, freedom of thought, religion, and communica-
tion, the security of iirivate property and of our private economy and oppor-
tunity for all nations to develop their own destinies peaceably. But at the

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3027

same time, without appeasement or weak compromises, we must be trying to effect
measures of cooperation — especially economic — with the Soviets. Our best
chance to do this is through the medium of international organization furnished
by the United Nations. But in so doing we must be watchful to preserve the
national integrity and allow the development of higher standards of living for
other peoples. In dealing with all of these problems we must understand and
cling tenaciously to our declai'ed and historic policy that men ready for free-
dom and self-government shall have them. It is a monumental task, yet one
which we must successfully perform if we are to have peace. We cannot fear
conflict, but we must move heaven and earth to avoid it.

Our problems in the field of domestic affairs have been and will continue to
be of enormous importance. They determine the basis of our daily lives and the
extent of the strength which will enable us to help keep the peace and contribute
tc our own and the world's prosperity. In this first session we have still been
dealing with many of the economic and social dislocations caused by war, and
with the challenge of making a private economy work for the benefit of all the
people with a minimum of Government interference, after years under strict Gov-
ernment controls. Congress passed legislation in the first session dealing with
labor, taxes. Presidential succession, veterans, civil-service retirement, rent, and
continuance of some other wartime controls, and a host of other bills. Con-
gi-ess lifted many wartime regulations and restrictions, such as those on install-
ment credit, reduced the scope and size of many Government agencies, like the
Reconstruction Finance Corporation, provided for an Army-Navy merger under
a single head of national defense, which I strongly supported, and dealt with
economy in the operation of Government agencies and departments.

A comprehensive labor bill, the Taft-Hartley bill, was enacted. I voted
against it, as I believed that it was punitive and that on the subject of strikes
threatening national paralysis — as in the coal scare — it was not effective. I had
recommended provisions for permitting seizure by the Federal Government of
struck essential national industries, and their operation on the minimal basis re-
quired by the public health and safety. The next months should tell us how the
Taft-Hartley bill will really work. My attitude on labor legislation may be
summed up by a phrase I used in a speech on a labor bill. I said : "I consider it
the duty of the Congress in legislation affecting labor to legislate with a scalpel
and not a cutlass."

Material reductions were effected in appropriation bills covering the ex-
penses of the Federal Government. I voted for some and against others. On
the whole, I would say as appropriations are a 1-year proposition, that whether
Congress did the right thing or not — whether it cut too sharply — will be seen
from how the departments and agencies operate in the coming fiscal year. The
costs of Government had to come down after the war, and the people must be
sympathetic to the efforts made to achieve economy by this Congress.

An eft"ort was made by the Republican majority to reduce taxes to help those
of modest income to meet the high cost of living. I voted for such tax reduction,
but the whole effort failed due to presidential veto. The whole tax structure is
being reviewed during the congressional recess and I shall strive to help bring
about a more rational tax structure, helping especially those with modest in-
comes.

Many wartime controls were abandoned, but some like rent and certain import
and export controls were continued. I believe that we should have had a rent-
cointrol extension to June 30, 1948 : but the law that was passed — after consider-
able doubt that any rent-control bill would pass unless it carried an across-the-
board increase — decontrols some types of housing and permits rent increases by
agreement between landlord and tenant on the rest — the term of this law is to
March 31, 1948. Maaiy problems have already arisen under this law and we shall
know in the next months whether the situation can right itself through the action
of States and municipalities and the discipline of landlords and tenants, or
whether Congress will have to act. Certainly tenants need not be pressured
into making ill-advised leases as I am convinced that rent control. State or
Federal, must continue as long as the housing shortage remains acute.

On the No. 1 domestic problem, and what I consider to be Congress No. 1
"must" — housing — Congress did relatively little until the close of the session
when a resolution passed for a joint House-Senate investigation of the national
housing shortage. This was an investigation which I had demanded over a
month earlier, by introducing House Resolution 247, when I became convinced
that I could not get action at this session on the comprehensive housing bill, the
Taft-Ellender-Wagner bill, which I had introduced in the House early in the
session, March 12, 1947.

3028 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

I am confident that this housing investigation will show the catastrophic hous-
ing shortage to demand a comprehensive housing bill like the Taft-EUender-
Wagner bill. Had we passed that bill this session, I am convinced that the next
6 months would have seen an enormous upward surge of housing construction.
As it is the whole outlook for a greater number of permanent housing units to
be built this year than last year, and for housing for moderate- and low-income
families and urban redevelopment and slum clearance is uncertain at the least,
unless private builders do miracles. The drive to pass the Taft-EUender-Wagner
bill must continue.

The housing investigation will serve a useful purpose as it should lay bare the
causes for the vastly increased costs which have so impeded the construction of
needed homes. This will require the investigators to proceed with an even hand
in the fields of labor, materials, land costs and financial costs, and to expose the
archaic municipal building codes, and any monopolies and trusts which have
been contributing to the current high costs and the national housing shortage.
We all have a right to expect that if, as I am convinced, comprehensive Federal
housing legislation is found necessai'y by the investigation, it will be asked for
frankly and at the very earliest day, which if we are not called back in the fall
is at the opening of the next session on January 6, 1948. I shall continue to do
everything I possibly can to help solve the housing shortage so that millions of
our people including thousands in my own district, can live decently and health-
fully, at rents that they can afford to pay, and in a manner commensurate with
the resources of our country.

Among other problems which should be dealt with at the next session of
Congress aside from housing, are the national responsibility for health and for
the education of our youth, the improvement and strengthening of the whole
social-security system in terms of benefits, duration and types of coverage, and
material increases in the level of minimum wages.

The House of Representatives has passed the anti-poll-tax bill which is a
measure of justice to millions of our fellow Americans in the Southern States,
but much more needs to be done. The antilynching bill must be passed in the
next session. The bill for a national Fair Employment Practices Commission
must also be passed, to assure all of our citizens regardless of race, creed, re-
ligion, or color of equal opportunity and security in employment. I am a cospon-
sor of the Ives-Fulton FEFC bill now pending in the Congress (H. R. 3034).

One of Congress' first obligations in the next session will be to see that the
millions of people who suffer from lack of adequate medical care have an oppor-
tunity to share in the benefits of medical science. The state of our national
health is one of our principal natural resources, and I believe that we can work
out a legislative plan which will neither be socialized medicine nor medical care
only for indigents, and yet which will meet the general need for adequate medical
care. I was successful during the session in my fight to have expedited the
reports on overall research programs for heart disease, cancer, and polio called
for from the special commissions to be created under the National Science
Foundation bill, which was passed by the Congress. I also introduced a compre-
hensive bill, H. R. 3762, for a great research program to find causes and cures
for heart and cardiovascular diseases, which is sponsored by the American Heart
Association, the leading professional agency in the field.

Federal aid to education is also a primary obligation. The educational
standards of our democracy will determine the caliber of our citizens, and with
the problems which lie ahead it is in the national interest that that caliber be
very high.

Veterans' legislation will demand attention. Congress provided at this session
for the cashing of terminal-leave bonds, a measure of simple justice for which
I voted ; but much remains to be done on subsistence allowances for veterans
who are studying under the GI bill, on veterans' housing, and on veterans'
rehabilitation.

World humanitarian responsibilities will also demand our attention. During
the first session of the 80th Congress I joined with Senator Ives, of New York,
in introducing legislation to permit wai"-orphaned children to be admitted into
the United States free of our quota laws, for adoption by United States citizens
(H. R. 2446). I hope that we shall get action on this bill in the next session. I
was also privileged as a member of the subcommittee of the Foreign Affairs
Committee to be instrumental in getting House action just before the deadline
which enabled the United States to join the International Refugee Organization,
the inteiTiational organization for the care and resttlement of displaced per-
sons and refugees. But the Stratton bill providing for the admission of 400,000

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3029

•of the displaced aud persecuted persons of Europe into the United States over
the next 4 years, without changing our permanent basic immigration quota sys-
tem, failed to be acted on. I called these displaced and persecuted unfortunates
the "walking dead"' of Europe in advocating the International Refugee Organi-
zation resolution. By the next ses.sion of Congress the International Refugee
Organization will be working on the resettlement of the displaced persons and
will be seeking our cooperation in a resettlement plan. Whether through the
Stratton bill or other suitable legislation, the most elemental dictates of human-
ity as well as self-interest demand that we shall cooperate in the prompt reset-
tlement of these unfortunates.

Finally, one of the greatest challenges of our time is in our ability to make our
private economy work in the United States, so that individual freedom is pre-
served and economic security is afforded to our people. Heretofore, we have
shown great ability in increasing production, and in establishing high standards
of living, but we have been derelict in providing adequate security and conti-
nuity for these conditions and have suffered terrible depressions which have
shaken our society to its roots.

We should be looking into our whole economic organization in business, in-
dustry, finance, agriculture and government to determine how we may sta-
bilize our economy to avoid or at least to cushion major depressions. This will
involve herculean efforts to deal with the high cost of living. Our efforts must
be to make higher incomes mean more goods and comforts and not higher prices
for the same or less goods.

Our greatest domestic threat lies in the present runaway cost of living which
is jeopardizing our domestic prosperity and may engulf us in an awful depres-
sion.

With all these problems to be dealt with, we must at the same time keep the
foundations of our Nation secure, guard ourselves against subversives and totali-
tariaus of the extreme left as in communism, or of the extreme right as in na-
zism, preserve civil liberties and free institutioins and make our Constitution
■work. In a defense of civil liberties on the floor of the House I said, "There can
be a tyranny of the Congress, as there can be a tyranny of the President or of
the Supreme Court." It is our solemn duty to guard against all tyrannies.

The glorious history of almost 160 years under the Constitution gives us
faith that with God's help we shall deal with our problems effectively and go on
to the glorious future which is our destiny.

[Congressional Record, June 15, 1948]

Eightieth Congress Special and Second Session Record and Forecast. Exten-
sion OP Remarks of Hon. Jacob K. Javits, of New York, in the House of
Representatives, Tuesday, June 15, 1948

Mr. Javits. Mr. Speaker, many of the problems which we faced on January
3, 1947, when the 80th Congress convened have been dealt with during the
past 18 mouths, but other serious problems will remain unsolved as we adjourn
to prepare for the coming Presidential election. A review of the work of this
Congress and its record and an assessment of what is likely to face the 81st
Congress should prove useful information to all interested citizens.

I campaigned on a platform of international peace through cooperation within
the United Nations, and domestic prosperity and stability based on an ever rising
standard of living for all of the people of the United States.

first session recapitulated

By the time the President summoned the Members of Congress back to Wash-
ington on Noveml:)er 17, 1947, the 80th Congress had written a good deal of
legislation on the statute books. It had extended Federal rent control, and
acted on relief for European countries like Greece, Austria, and Italy, enacted
tax reduction, unification of the armed services. Presidential succession, and
had passed the imjxirtant appropriation measures affecting literally thousands
of governmental activities. It had laid the groundwork for much of the action
that has been taken during the 2d session of the SOth Congress. When the first
session recessed on June 26, 1947, the Members dispersed to go home to their
own districts to find out how their constituents felt about the momentous national
problems confronting us. Other Members, including myself, took up committee
assignments either in the United States or abroad. Everyone hoped that it

3030 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

would be unnecessary to return to Washington until the beginning of the
new year.

THE SUMMER RECESS

As a member of the Subcommittee on the International Refugee Organization
and the International Trade Organization of the Committee on Fureign Affairs,
I spent 8 weeks in Europe last summer visiting hundreds of DP camps, speaking
to thousands of DP's and also to the men and women in the governmental and
private agencies responsible for the care and resettlement of these people who
had lived through terror and death sustained only by the hope that they would
find a new life in a new land as soon as the shooting was over.

THE INTER^^ATIONAL CRISIS AND THE SPECIAL SESSION

While I was visiting DP camps and studying the ITO, others of my colleagues
were making other investigations in Europe, South America, Asia, and other
foreign teri-itories, too. More Congressmen went abroad last summer than at
any other time in American history. I think this fact is of extreme importance
because because it highlights the paramount role that foreign affairs plays in
our domestic and personal lives. Even before all of the Congressmen had re-
turned to the United States and had analyzed their experiences and reported
them to the country, the foreign situation had become so serious in terms of
American policy that the President of the United States asked the Members of
Congxess to reconvene in November of 1947, in a special interim session to take
action on a foreign-aid hill. This bill was designed to help the countries of
western Europe avoid disaster and reject the grim alternative of the "police
state" by providing them with enough food and other basic commodities to see
them through until they could rehabilitate themselves economically, socially,
and politically, fortify their democracy, and rebuild their resources and trade.

THE MARSHALL PLAN

Preliminary work had already been started by what are now known as the
16 Marshall plan countries of Europe (Denmark, Austria. Belgium, France.
Greece, Eire, Iceland, Italy, Luxembourg. Norway, Netherlands, Portugal, United
Kingdom, Sweden, Switzerland, and Turkey). As we all know, they are called
the Marshall plan countries because they developed a plan of cooperative eco-
nomic action as a result of a suggestion made by Secretary of State Marshall at
the Harvard commencement in June 1M7. Secretary INIarshall said at that time
if the countries of Europe would cooperate and draw up plans to help themselves
in a free and democratic manner, the United States would back them up with
money, men, and materials.

The Committee on Foreign Affairs, of which I am a member, started hearings
on the program for the Marshall plan early in November and carried on these
hearings continuously for approximately 5 months.

For 6 weeks during this time the Congress studied, debated, and finally passetl
an interim foreign aid program preliminary to ^Marshall plan aid, to meet the
immediate needs of foreign countries faced with starvation and the prospect of
fuel shortages during the winter months. The vote was overwhelmingly in favor
of such a program. As a member of the Foreign Affairs Committee, resiwnsible
for carrying this legislation through the Congress, I played an active part in
writing this legislation which was so largely responsible for giving life and hope
to the peoples of Europe in time to prevent them from plunging themselves and
the United States into a new political and economic upheaval which could have
led inevitably to war.

Today the Euroiiean recovery program which was a blueprint for action only
a few months ago. is a reality. The United States is appointing heads of mis-
sions to all of the ERP countries and the Economic Cooi>eration Administration
is being built up in the United States, but 3 months ago it faced a hard fight. As
a memlter of the Committee on Foreign Affairs, I was one of the active partici-
pants in the mighty effort to legislatively implement Secretary Marshall's
momentou.s suggestion of June 4, 1947, and the monumental work of the 16
European nations who joined together to work for their mutual economic recov-
ery. The final vote in favor of the European recovery program was gratifyingly
large. I believe it will prove to be one of the really great achievements of Amer-
ican foreign policy as significant as the Monroe Doctrine in expressing our deter-
mination to have world peace.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3031

THE tT>'ITED NATIONS AND PAT.ESTINE

The EuroiJean recovery program is but one example of the action that the
United States has taken in the international sphere. The United States must
actively work within the framework of the U. N. to achieve world peace, security,
and prosperity ; much more can be done. For example, as a result of action
recently taken by the Congress, the United States is now a member of the
World Health Organization, a proposal which we in the Committee on Foreign
Affairs worked for and supported for montlis.

The UN has had to deal with many difficult issues, a very important one of
which is Palestine. Last year during the interim session we had good cause
for gratification when the United States through the UN adopted the partition
plan of the U. N. General Assembly on Palestine on November 29, 1947. It seemed
possible then that bloodshed would be averted through this timely and decisive
action by the nations of the world. Unfortunately, however, the action of the
UN on this issue never was implemented. Almost as soon as the decision was
made it was repudiated by the very countries which should have breathed life
into it. Both as a member of the Committee on Foreign Affairs and as one who
had made a tremendous effort to get justice in Palestine so as to establish the
true Jewish national home there, I tried to make a constructive contribution
toward the education of the other Members of the House who I knew would
inevitably have to become concerned with this situation since it affected the
peace and securitv of the United States as well as of the other members of the
U. X.

With 30 of my colleagues, who acted together on this issue, I kept in constant
communication with the President of the United States, the Secretary of State,
and the United States representative to the U. N., on the Palestine issue urging
that the United States actively work for the realization of the partition plan,
the protection of the shrines of Christians, Moslems, and Jews, and peace in
the Holy Land. When it became apparent that the UN could not and would
not act swiftly enough to prevent the outbreak of war in Palestine, I united
with my 30 colleagues in urging the lifting of the United States arms embargo
in the Middle East which had been invoked by the President and which in
effect was preventing only the Jewish people of Palestine from receiving arms
to defend themselves, and not the Arabs, since it was an open secret that the
Arabs were receiving arms and money from Britain to carry on a war of ag-
gression for many months. I protested in speech after speech on the floor of
Congress against this British double dealing and demanded that it be ended
or that the whole United States policy of helping Britain be reconsidered
decisively.

When the new State of Israel was proclaimed on May 15, 1948, I introduced
legislation authorizing the appropriation of $100 million so that the people of
Israel could purchase military and other supplies to help them end the aggres-
sion against their territory, rebuild their shattered economy, and realize the
hopes and dreams that had been nurtured by the Jewish people for centuries.

Recognition of the State of Israel by the United States which came almost
immediately was the first real break in resolving the problem.

Now that there is a truce in Palestine I have continued to expose Britain's
support of Transjordan's Arab Legion in its attack on Jerusalem in the effort to
get Britain to atone for her actions by calling off the Arabs, and, second. I have
pointed out that the truce cannot be used to appease the Arabs, but that Israel's
independence, won by much sacrifice, and the boundaries established by the
United Nations partition decision must be respected.

The Palestine situation demonstrated better than any other the present weak-
nesses of the U. N. as well as its potential power and effectiveness. Ever since
its inception the U. N. has been plagued by excessive use of the veto and by
vacillation instead of determined action of its member nations. The great ten-
sion that exists in the world today, especially between the two great powers of
Soviet Russia and the United States (which is considered later in these remarks),
had dwarfetl and almost paralyzed the functioning of the U. N. But on the
Palestine issue both the United States and Soviet Russia were on the same side
and still the new world organization was helpless to cope with the very threat-
ening problem involving the peace of the Middle Eastern region.

REORGANIZATION OF THE UNITED NATIONS

The enemies of the L^. N. and the skeptics of international cooperation used
the Palestine situation as the occasion for condemning the whole organization

3032 SCOPE OF SOVIET ACTIVITY EST THE UNITED STATES

and for seeking a reorganization so drastic in character as to have destroyed
it in the attempt to rebuild it. Tliey based this demand also on U. N. failure in
resolving the problem of control of atom bombs, or in settling the contentions
between the United States and the U. S. S. R. As a result of the extensive
hearings held by the Committee on Foreign Affairs of the House and the Com-
mittee on Foreign Relations of the Senate and the testimony presented by
members of the State Department, especially Secretary Marshall and other
vrell-informed witnesses, any precipitous action has been forestalled and serious
and well-thought-out action will be taken by the Congress.

I contributed to the discussion and resolution of the issue through participation
in the Town Hall of the Air program on the reorganization of the U. N. and
countless other radio and platform forums, as well as during the open hearings
of the House Committee on Foreign Affirs.

One of the most effective steps taken by the House Committee on Foreign
Affairs has been the reporting of a bill on the U. N. providing, in addition to
other things, a $65 million loan to the U. N. so that it can build a permanent
home on the site selected in New York City. I introduced the legislation for the
loan in the House of Representatives.

THE FLIGHT OF THE DISPLACED PEKSONS

These are fine people, skillful, productive, and anxious to work, about two-
thirds of them from Eastern Europe of Catholic faith, about 10 percent from
northern Europe of Protestant, and about 20 percent from many part of Europe, of
Jewish faith — but all equally homeless and unhappy. They were faced with the
prospect of spending years in almost the same concentration camps that had
claimed their friends and families and imprisoned their souls and bodies. Labeled
DP camps, they were no less deadly to the morale and spirit of already martyred
peoples than when they were known as concentration camps. Armed with the
knowledge that this could prove to be one of the worst reflections on the record
of our own and the other United Nations, I came back to the United States from
our investigation determined to do everything I possibly could to eliminate the
problem of the DP's. Swift legislation action by the Congress was indicated
to open the gates of the United States to our fair share of the DP's, so that instead
of displaced persons they could become productive new citizens in the United
States and in other peace-loving, democratic countries.

So far the legislation enacted by the 80th Congress is against certain basic
points I had worked for and effects a discrimination against certain groups in
the DP camps which I consider fatal to its original purposes. The bill only
provides for the admission of 220,000 DP's in 2 years, instead of 400,000 DP's in
4 years, as did the Stratton bill. Also, it picks a date at which eligible DP's
should be determined which discriminates most unfairly against the existing
population of the DP camps, for it discriminates against deserving Catholics and
Jews, and admits, for instance, not the actual percentage in the DP camps of 23
percent but only about 3 percent of the DP's from Poland and eastern Europe of
Jewish faith who escaped from the religious persecution of the months im-
mediately following the war which had been left as a heritage by the Nazis.
The only comfort we have left is the United States participation in and contribu-
tion to the International Refugee Organization, for which I worked so hard, and
the inclusion in the DP bill of the substance of the legislation introduced by Sen-
ator Ives and myself early in 1947 to allow DP children who became orphans as
a result of the war to enter the United States without regard to immigration
quotas. The fight to eliminate discrimination in the DP bill must be constinued.

THE INTERNATIONAL TRADE ORGANIZATION

While in Europe last year I had the opportunity to review at Geneva the be-
ginnings of the International Trade Organization. This organization contains
the basis for future world economic cooperation which is the necessary founda-
tion for international peace. Representatives of the United States and 19 other
nations sat together at Geneva to catalog the problems that plague international
trade and weaken the economic structure of individual peoples. They sought
to create machinery capable of dealing with these troublesome problems and pro-
moting international trade through the elimination of artificially created trade
barriers.

Three months later as one of the United States delegates to the International
Trade Organization conference in Habana, I again met with the draftsmen of

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3033

the new ITO in Habana — representing 60 countries — and brought back to the
Congress a report of the contribution that the United States delegates were mak-
ing to the creation of this new organization. Although the United States has
not yet formally ratified the new ITO charter, the way has been paved for doing
so in the next Congress.

V^^hen the extension of the Reciprocal Trade Agreements Act came up recently
I supported and voted for the passage of a straight 3-year extension with no
crippling restrictions and testified before the House Ways and Means Committee
and the Senate Finance Committee to that effect, I also spoke in the House on
the debate to warn my colleagues of the dangers to American business if the pro-
gram were emasculated in favor of protectionism over reciprocity. I am grati-
fied that the Congress has seen fit to continue the RTA program for another year
without the congressional veto, although I preferred a straight 3-year extension.

DOMESTIC LEGISLATION

I have described at some length the action taken by the Congress in the field
of foreign policy because the problems of world peace have lately overshadowed
what are too, the pressing needs that our people face in the United States.

RENT CONTROL AND HOUSING

Our people have been vitally concerned with the problems of housing and rent
conti'ol as a result of lack of construction during the war and the increase of fam-
ilies and marriages. The housing shortage became critical during the years
when millions of American boys were living in foxholes and jungle huts dreaming
of the day when they could return to the United States and live civilian lives in
comfortable homes. Instead, when they returned they were confronted with the
problem of finding any kind of shelter decent or otherwise, at a price they could
afford. The long-dreamed-of privacy that so many veterans had lived for dur-
ing the war years turned into a cruel joke. Instead of living with his buddies,
the veteran found himself living with his in-laws under difficult and overcrowded
conditions, or spending much of his income and savings earmarked for other
essential commodities and services on providing living accommodations, gen-
erally of an inadequate character, for his family.

As a veteran myself I have been very conscious of the problems faced by mil-
lions of veterans and their families throughout the country and I have worked
diligently and ceaselessly for adequate rent control and housing legislation.

Congress passed a rent-control bill again early this year. It was not as
tightly drawn as I should have liked to see it, but we did manage to keep Fed-
eral rent control. I fought for better controls to get tenants the painting, dec-
orating, and building maintenance they were entitled to, to prevent unfair evic-
tions of tenants by landlords, and against across-the-board rent increases. I also
warned all the people of my district not to be pressured into making the so-called
voluntary 15-percent rent increases.

When it comes to housing, however, the story is not encouraging. Millions
of Americans cannot afford to buy or rent houses built by private industry un-
der existing costs unless they do so at the price of their standard of living.

The Taft-Ellender-Wagner Housing Act, which I introduced in the House, was
the legi-slation veterans and citizens looked to as a means to end the drastic hous-
ing shortage. It was the only comprehensive long-range housing bill up for con-
sideration. It had been before the Congress for more than 4 years, in one form
or another, extensive hearings had been held on it by both the Senate and House
Banking and Currency Committees, the Joint Committee on Housing which was
created by the 80th Congress to make an exhaustive study of the housing situa-
tion, had supported its main provisions, including federally assisted low-rent
housing, Government-supported research to reduce housing costs, slum clearance,
and farm housing and it had twice been passed by the Senate.

Together with the gentleman from Massachusetts. Congressman Kennedy,
and several other veterans representing all of the major veteran organizations,
1 sponsored a veterans housing conference which was held in Washington on
February 29 and March 1 for the purpose of marshaling support and getting
action on the TEW bill from the 80th Congress. More than 1,350 veterans from
all parts of the country representing all national veterans organizations attended
this conference. The response was immediate and encouraging. Many Con-
gressmen who had recognized the need for action in housing and who had not
understood the overwhelming interest that the people of the United States have

7272.3— 57— pt. 4.3 3

3034 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

in the TEW bill had their eyes opened, and it got many signatures on the dis-
charge petition by which the bill could be brought up on the floor of the House.
Despite the drive to bring the TEW bill up for action by discharge petition
and the ceaseless efforts of those like myself in the Congress in behalf of the
TEW bill, and although the bill was finally reported out by a majority of the
House Banking and Currency Committee, it could not get action on the floor of
the House. I pledged the House, however, that the fight for the TEW bill
would continue and refused to compromise my position in support of this bill in
any way.

OTHER DOMESTIC ISSUES — NATIONAL HEABT DISEASE INSTITUTE

Housing is the country's No. 1 domestic issue, but the questions of health,
education, social security, minimum wages, civil rights, have also demanded
action by the 80th Congress.

Few of these issues have been acted upon, yet it is very gratifying to me
that after a year's work the Congress passed the bill H. R. 3792, which I intro-
duced in June 1947, to create a National Heart Disease Institute within the
Federal Public Health Service. There is no doubt in my mind but that heart
disease, which is the Nation's foremost disease killer, will be dealt a body blow
due to the research and clinical work that will be initiated as a result of this
legislation.

FEDERAL YOUTH ASSISTANCE ACT

During the special session I introduced a bill to provide Federal financial
assistance to State and local youth projects. In my own district of Washington
Heights and Inwood in New York City, the problems of youth demand immedi-
ate attention if they are to be dealt with in time to prevent broken lives. An
outstanding citizens' organization, Youth Aid, Inc., has been working there and
doing a great job on youth problems, under President Wright, of the College of
the City of New York, Anne Lee Jacobs, Professor Shulman, of City College,
and other leaders. But it needs financial help. This bill has met with a tremen-
dous amount of enthusiasm among those engaged in the fight against juvenile
delinquency because it provides what has been lacking for so long, the funds to
carry out the many excellent preventative youth programs which never get
beyond the blueprint stage, because of the lack of funds to carry them out. The
very crowded schedule of the Committee on Education and Labor has prevented
the consideration of this bill during the 80th Congress. From the ever-mounting
support that this bill is getting, however, I feel confident that the 81st Congress
will pass this or similar legislation.

HIGH COST OF LIVING

Ever aware of the burden that the high cost of living has placed upon the
people of this country and my constituents, I have been engaged in the effort to
stabilize and bring down the cost of living. I have already mentioned the fight
to maintain rent control. This was a principal effort in behalf of stabilizing
the cost of living since rents normally constitute 20 to 30 percent of the family
budget. But the high cost of clothing, food, and taxes as well as shelter de-
manded attention and I have tried in every way possible to meet these adver-
saries of a high standard of living head on. I voted against giving special
treatment and a subsidy to the wool growers. I campaigned for food-conserva-
tion measures and succeeded in getting the House of Representatives to write
such a provision in the interim-aid bill passed by the Congress in December 1947.
I joined in the fight to eliminate taxes on oleomargarine. Together with Senator
Flanders, of Vermont, I sponsored a meat-rationing bill. Although the bill
never got out of committee I believe that Senator Flanders and I accomplished
a great deal by warning the meat industry against the same squeeze on the
public of which they had been guilty in the spring of 1946. This action aroused
a great deal of discussion and although the bill did not pass I believe the public
opinion created was an important element in preventing a complete runaway
of meat prices during the ensuing months.

When the controversial matter of tax reduction came up, I was guided pri-
marily by the needs of the people of middle and low income in my district and
all over the country to meet the high cost of living. As I said during the debate,
"I voted for tlie reduction because the need of my constituents for some kind
of help to meet the higli living costs is so great that I feel as their Representative
that I must vote for this bill with its imperfections rather than to accord thera

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3035

no help iit all at this time." It is my conviction that the people of my district
will le willing to increase taxes again if necessary, but they want the reductioiii
now wliile we can aliord it in view of the high living costs.

CIVIL RIGHTS

The problem of safeguarding the cherished American tradition of civil liberties
has loomed large on the congressional horizon during the second session of the
80th Congress. The rL'port of the President's Committee on Civil Rights touched
off a tremendous amount of discussion in this field. Legislation has been in-
troduced to create a Federal FEFC, to abolish the poll tax, to make lynching a
Federal offense, and to eliminate segregation in its many forms.

Together with other Members I introduced legislation to create an FEPC dur-
ing the 1st session of the SOth Congress, but unfortunately no action has been,
taken on this measure on the House side and from all appearances nothing will
be done on it during the rush to adjourn. But this is must legislation and I
intend to work for its passage early in the next Congress.

The dilemma of how to cope with the threat of communism in the United
States was crystallized during the debate on the Mundt-Nixon Subversive Con-
trol Act of 194S. This measure became one of the most thoroughly discussed
pieces of legislation to come before the SOth Conaress and even was the subject
of a great radio debate by two Presidential candidates. I am in accord withs
those who believe that no stone should be left unturned in dealing decisively
with any threat by subversive elements to American political and economic
institutions. I had to vote, finally, against this measure because I believed witl»
Governor Dewey and Senator Taft that the Mundt-Nixon bill did not accomplisii.
the purpose we sought, but outla\s-ed the Communist Party, and thereby increased
its threat because it would have gone underground. There is sufficient legisla-
tion on the books, if vigorously prosecuted, to deal effectively with those domi-
nated by a foreign government who seek to undermine American institutions.
The Senate has shown that it agrees, for the Mundt-Xixon bill has died tliere.
To strike a blow at totalitarianism with totalitarian weapons is to put a time
bomb under the great American fortress of civil rights.

I have stood against efforts to overthrow the guaranties of our Constitution,
realizing that these guaranties must protect all if they are to protect any.
1 showed my evenhaudedness in this by voting to punish those guilty of acts
against our laws regardless of their politics, hence I voted to cite for contempt
Messrs. Eisler and Josephson who had refused to answer the questions of a
congressional committee. Disturbed by the manner in which the Committee on
Un-American Activities was handling witnesses whei*e their reputation and
character was at stake, I introduced by resolutions a plan to substitute for the
House Un-American Activities Committee a new joint committee of the House
and Senate to investigate all Communist, Fascist, or other extremist movements
in the United States with the understanding that the committee would have
rules of procedure which would give people whose character was on trial a fair
opportunity to clear themselves.

veterans' benefits

The whole question of veterans' rights and benefits has also been a major
consideration of the SOth Congress. The House Committee on Veterans' Affairs
successfully sponsored through the Congress a bill increasing subsistence benefits
•from $65 to $75 for single veterans, $90 to $105 for married veterans, and $90
to $120 for veterans with more than one dependent.

This Congi-ess took action to authorize the cashing of veterans' terminal-leave
bonds.

Legislation has been enacted in connection with the disposal of war housing
and to arrange for putting up barracks and other temporary structures for
housing students attending schools and colleges under the GI bill of rights. I
supported all this legislation and worked for it. I also was able to get some
Government buildings put up at ISTth Street and Amsterdam Avenue in my own
district to help expand the facilities of Yeshiva University.

There was also passed by the House a bill to increase the aUowances for de-
pendents of disabled veterans and to help war widows and orphans. Also legis-
lation was enacted to help with homes for paraplegics with Government assist-
ance.

3036 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

I believe that the 80th Congress has dealt with the most pressing of the vet-
erans matters before it but there is still a tremendous backlog that will have
to be taken up in the 81st Congress.

FEDEEAI. AND POST OFFICE PAY RAISES

Another subject which deserves special attention is that of a pay raise for
Federal and post office employees. The high cost of living has been e.specially
hard on those who have been receiving incomes fixed by law despite the fact that
the cost of living has skyrocketed during the last 2 years. The postal employees
have been particularly handicapped because their basic salaries are lower than
most other Federal employee pay schedules to begin with. I have consistently
worked for and supported a §1,000 Federal and postal employee pay increase
which would be realistic in terms of the present cost of living. A bill has now
passed granting the postal employees a $450 annual pay raise, and other Federal
employees an average $330 per annum increase. That is not enough, but it will
help.

Some action has been taken, also, to help those Federal employees who have
already retired through the enactment of the Stevenson retirement bill which
increased the annuities of retired Federal employees by 25 percent or $300 a year,
whichever was the smaller, made provisions for refunding retirement contribu-
tions of employees who worked at least 5 years and less than 10 years, and
generally made more flexible the retirement age of Federal employees.

SELECTIVE SEEVICE AND FOREIGN POLICY

Every citizen will be giving the most serious consideration to the peacetime
draft. People in my district are deeply concerned that the enactment of the
draft at this time may be a measure in contemplation of war. The essential
element in maintaining the peace must be our foreign policy, which should be
a policy for peace. This policy consists of three parts : First, assisting in the
economic reconstruction of the European democracies and other democratic na-
tions provided that they do their best to help themselves and each other ; sec-
ond, strengthening the U. N. to make it what we want — a true world organiza-
tion for preserving the peace ; and, third, performance of our international
responsibilities and assisting free peoples to be free. If we pursue this three-
point foreign policy with vigor and faithfulness, we have a right to look with
confidence to a time when this peacetime draft for present purposes will be no
longer necessary.

It is estimated that the draft will call up about 200,000 men between 19 and
26 each year for 21 months' duty. There are restrictions in the law regarding
the exemptions of veterans who have already served a year or more, those with
dependents, and the deferment of young men attending schools or colleges until
the end of the schoolyear, those taking professional training, and others. It
will be up to us as legislators to guard carefully against any dominance of the
country by the military and to insure that civilians at all times shall dominate
the military forces and the Federal Government, in accordance with American
tradition. We showed our ability to do this even in war, and we should be able
to do it just as well in peace.

The prize of peace, prosperity, and stability which the American people fought
for at great sacrifice and which they thought they had won in 1945 still lies just
beyond our reach, but with wisdom, responsibility, and generosity, we can go far
during the next years toward really accomplishing the goals for which the
recent disastrous war was fought. The 80th Congress made some good begin-
nings, and there are also failures and frustrations to point to. I believe that
in the 81st Congress, as in the SOth, the nettling problems of foreign policy will
again be in the forefront of our consideration, and that the people of the United
States will also want action on the social is.sues which were passed over by the
SOth Congress. Together, we, people of the United States, will be building tomor-
row as we are today a coiuitry capable of greatness and of leading toward a
united and peaceful world organized democratically for its own salvation.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3037

Speci\l axd Final Session, Eightieth Congress: Record and Forecast— Ex-
tension OF Remarks of Hon. Jacob K. Javits, of New York, in the House
of Representatives, Saturday, August 7, 1948

call for the special session

Mr. Javits. Mr. Speaker, the President announced at the Philadelphia conven-
tion of the Democratic Party that he was calling the Congress into special session
primarily to deal with high prices and the housing shortage ; and added also a
list of other matters such as the United Nations loan agreement and the displaced
persons bill. It is true that calling the Congress together in this political way
had a tendency to prejudice the atmosphere at once and was, therefore, not too
advisable, if the President really wanted results. Nevertheless, I, as one Con-
gressman, was entirely satisfied that the Congress should be asked to do some-
thing tangible about these problems.

For one, I was the sponsor of the Taft-Ellender-Wagner bill for a comprehen-
sive national housing program insofar as the House of Representatives was con-
cerned, and welcomed the opportunity to wage a further fight for this legislation.
Also I wanted an opportunity to amend the discriminatory DP bill which had
passed in June 1948. Finally, I had fought for the $65 million loan to enable
the United Nations to establish its headquarters in New York, which had failed
to get action in the regular session and I wanted it to pass.

But beyond anything else, it was clear that the economic security of the people
of the United States had to be protected. For the prime consideration in the
mind and heart of every citizen was a desire for peace and economic security.
If prices continued to run away in the United States, the ability of the people to
buy must at some point end, and the resulting depression would shake our society
to its foundation. Also, if we had a depression here our resulting inability to
help other democratic nations to effect recovery would result in sweeping changes
in their own governments which could lead to war.

AVhen the official season opened it was also clear that there were no easy solu-
tions to our problems. The President recommended rationing and price control
over key items in the cost of living, and in industrial production. I showed my
views by introducing again the bill which I had sponsored with Senator Flanders
as far back as January 1948, when I saw runaway prices getting worse, for the
rationing and allocation of meat with added powers. I stated, in connection
with this bill, that I favored also controls over raw or unfabricated materials
like steel, which affect the cost of living through the products which go into most
manufactured goods. But none of us could forget at the same time, the rampant
black markets and the flight of goods from the stores, which had induced the same
President to lift all controls in June of 1946, because they could not be effectively
administered in peacetime. Our citizens will long remember the artificial meat
famine of that time when meat just left the stores and was unobtainable at OPA
prices, but could only be found in the black markets. I believe that it would be
proper to reimpose controls as a temporary expedient. I would certainly expect
also that we could see our way through to a permanent solution. The President,
though, did not .seem to be thinking beyond the coming election, for he gave no
hope of anything but a continuing emergency which would require controls as far
as he indicated forever, or until we got into a depression.

rationing and control favored now

My concern with the current price situation has been to endeavor to retain
for wage and salary earners, the progress which was made during the war
in attaining a higher standard of living. Because real wages — that is, wages
expressed in terms of what the dollar will buy for one's family — increased by
about two-thirds in 1946 over what they were in 1939 and even with the higher
cost of living, there was still an absolute gain of about one-third. In other
words, people were living one-third better than they had before the war. The
key effort in prices, therefore, has to be to retain this advance in the standard
of living for people with modest incomes and to make it permanent.

The political atmosphere of the special session has been so great that no
rationing, allocation, or price-control powers have been given to the President,
and the only controls passed have been credit controls. The President asked for
these, also, and they are useful, but their effect is not immediate. The failure

3038 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

to pass legislation for direct controls may not be due so much to opposition
;to the program — fur this very Congress has twice passed rent control — but
;rather a complete lack of confidence in the analysis of the situation and of suitable
xemedies for it by the President and the administration, and in the ability within
ithe last few months before a great election of the President and his administration
to wisely administer such controls.

Regardless of my own view that controls should be enacted into law at the
'.special session, this has not been done. Congress will be back in session next
January and action at that time on the price front must be sure and direct.
There will no longer be any reason to delay due to lack of confidence in the
President, as the people will have given a new mandate. It must be coupled,
however, with action affecting not only prices but other Government as well as
economic activities which keep prices high.

So for example. Congress must review and overhaul the law providing support
prices for agricultural products on which we are spending close to a billion
dollars a year. We are supporting these prices at a time when the income of
farmers is the highest in history. Great statesmanship on the part of the new
President and the new administration will also be required to get management
and labor together to stop the wage-price spiral which causes wages and prices
to be running a continuous race and for every round of wage increases, brings
<i)n an even greater price increase, leaving no benefit to anyone. Finally, we must
establish some means by which we shall plan ahead with respect to production
and other essential aspects of our economic life — as is done in any well-run
business — and not rely on the cycle of prosperity and depression to work out
our problems. I have said before that the people just will not take the punish-
ment involved in that planlessness with its deepening depressions. I have intro-
duced a bill for the establishment of a National Economic Commission which
proposes a way in which this result can be effective while retaining fully our
democratic processes.

HOUSING TEW BILL

The President also called us back into session to deal with housing and as I
have stated, as the sponsor in the House of the Taft-Ellender-Wagner compre-
hensive housing bill, I welcomed this opportunity to fight for its enactment. To-
gether with other liberal Congressmen similarly interested, I realized that only
by getting the legislation on the floor of the House of Representatives for a vote
could we be successful. For this legislation had been killed before through the
action or inaction of committees. Accordingly, I joined with these colleagues
In the fight to get a majority of the Members of the House of Representatives to
sign a discharge petition which would have brought the TEW bill out for a vote.
We fought hard and came within a very close margin of success, but did not quite
make it. The housing bill finally passed by the House of Representatives at this
special session is largely a bill to aid private construction in low-cost homes.
The bill also picks up one important part of the TEW bill and makes it law —
that providing for Government insurance of investments in medium rental hous-
ing— which should be a powei'ful stimulus to this type of construction in large
cities like New York by insurance companies and banks. Though I had worked
on this yield insurance program for almost 2 years and was deeply gratified to
see it enacted, I could not vote for the housing bill but voted "present," because
it omitted federally subsidized low-rent housing and slum clearance. In this
■way the bill discriminated against not less than 36 percent of the American
people who live in families with incomes of $2,000 per year or less. On August 5,
1J)4S, I made a speech in the House of Representatives answering the arguments
made against the TEW bill. It is interesting to consider these arguments in
view of the limited housing bill which was passed. As I stated during the debate,
the fight for federally subsidized low-rent housing, slum clearance, and federally
aided farm housing will go on and will be successful in the next Congress. I re-
peat liere from my address referred to above, some of the answers to tlie objec-
tions made to these features of the TEW bill.

The TEW bill is also criticized because it will put the Government in the hous-
ing business to compete for scarce men and materials. But it will do nothing
of the kind. It provides for only a maximum of 100,000 units of public housing
per annum ; this is 10 percent of present housing construction and would be 714
percent of the construction expected under the TEW bill. That is the least
which can be done to bring a share of the new housing within reach of those In
the lower income brackets who need it most. TEW will reduce costs and accel-
erate private construction; it will not compete with it.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3039

Second. Private industry is doing the job. Even if this were true, it is a fact
that the housing produced is not within the price range, either for sale or rental,
of those in the middle and lower income levels who need it most. The average
price of a home around New York City is $13,000, veterans generally cannot pay
more than $6,000. Housing starts in June 1948 decreased about 4 percent from
those in May 1948. Not less than 30 percent of the housing construction in the
country was done prior to March 31, 1948, under mortgage insurance provided
by title VI of the National Housing Act. It is freely predicted even by real-estate
interests that 100,000 additional home units will be lost this year because title VI
went out March 31, 1948, and it is estimated that total housing completions this
year will not be much more than 900,000 units. In the face of an immediate
demand from 2 to 4 million veterans living doubled up with relatives, an answer
from the housing-construction industry is hardly business as usual.

Third. It is said that the TEW bill would be inflationary in its effect. This
must be premised on the absolute expenditure involved. Commitments under
the TEW bill are a maximum of $160 million of subsidies per year with a total
of $1,610 million to $2,610 million of insurance authorization, and $1,310 million
to $1,560 million of revolving loan funds generally considered collectible ; there
is general agreement on the United States being committed for the insurance
authorizations whether or not TEW passes. That leaves a maximum of $160
million yearly in subsidies. There is no such outcry, however, as meets this
expenditure for housing lower-income families, when it comes to aiding certain
special interests. It is, therefore, interesting to compare the expressed fears of
inflation due to a housing bill with the following appropriations made by the
80th Congress:

Rural electrification $636, 000, 000

Soil conservation 203, 000, 000

AAA farm-support program 265, 500, 000

Reclamation projects 136, 000, 000

Flood control, rivers and harbors 900, 000, 000

Federal aid to highway construction 1, 117, 000, 000

Foreign aid and the ERP 7, 000, 000, 000

Total 9, 301, 500, 000

DP'S AND THE UNITED NATIONS

Two Other subjects to which I have devoted myself in the special session have
been the correction of injustice done by the displaced persons bill passed in June
1948, and the consummation of the loan to enable the United Nations to build its
home in New York City.

It will be recalled that the displaced persons bill through utilizing an eligibility
date of December 1945 as against an eligibility date of April 1947, resulted in
direct discrimination against Jews who had escaped from political and religious
persecution in eastern Europe immediately following and as a result of the war,
and Catholics who had similarly escaped from such persecution from eastern and
southeastern Europe. For these tens of thousands of unfortunates had entered
the DP camps after December 1945 but before April 1947. I set myself a limited
objective during the special session to get this date changed. This alone would
have meant the difference between hope and hopelessness for well over 50,000
DPs out of the out of the 203,000 to be admitted from the DP camps in 2 years
xmder the law. Though I fought hard, made a number of speeches on this point
in the House of Representatives, fought the issue as well among my colleagues,
getting, I am happy to state, the support of the Speaker of the House of Represent-
atives and many Members, it was just impossible to get this amendment to the
DP bill passed in this short special session. The Senate had inserted the
December 1945 date and the House had used the correct April 1947 date, and it
was impossible to get Senate action despite the best efforts of Senators Smith of
New Jersey, Ives, Ferguson, Cooper, and others. The injustice is so apparent,
however, that I have great confidence that we shall get such an amendment passed
early in the next session, and I intend to make this one of my principal efforts at
that time if I am returned to the Congress.

UNITED NATIONS LOAN

The United Nations headquarters loan of $65 million was a business tx-ans-
action on good security to enable the United Nations to build its headquarters

3040 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

on the East River in the Borough of Manhattan from 42cl to 48th Streets.
The city and State of New York were cooperating to tlie extent of $20 million
in expenditures, and the site, worth $8,500,000, had been donated. Here, too,
I fought the battle through the conferences with my colleagues, througti the
Foreign Affairs Committee, of which I am a member, and through the House
of Representatives itself. I said in the debate that if we do not make this loan
we will have in New York City "a black hole of Calcutta," the excavation for
the United Nations headquarters, but without the headquarters itself. The
House of Representatives passed the bill and the United Nations can now go
forward with construction. I am proud of this achievement, not only because
it will beautify a part of Manhattan Island with great structures but because
it will center the United Nations, which is the world's best hope for peace,
permanently in the United States, where I believe it has the greatest chance
to succeed in its mission of abolishing war as a means for settling international
disputes and substitute for it law.

OTHEE DOMESTIC LEGISLATION

Other desirable legislation was called to the attention of the Congress by
the President which I favor very much. I wanted to bring up this legislation
and pass it. It may have been too much to expect within the few months pre-
ceding a great national election that the Congress would act upon these great
and permanent reforms, but I am disappointed that they were not acted on and
the fight must go on and must be won. Primary among these measures is the
fight for civil rights, the antilynching, anti-poll-tax, and FEPC bills. The House
of Representatives passed the antilynching bill over a year ago and I voted for
it. I am also a cosponsor of the FEPC bill in the House. The fight for these
measures, essential to vindicate justice and the Constitution, must continue to
success in the next Congress.

Federal aid to education also failed of enactment in this Congress. Such aid
must not be delayed. The problems of our days are too great and too complex
to neglect the education of our youth in all the States, whether rich or poor,
North or South. For the educational level of all Americans will determine the
fate of our country for each American.

A reform of the social-security system, particularly for old-age and survivors
insurance is essential. The amount of insurance reserves already created indi-
cates that benefits can and should be increased by 50 percent, and allowable
earnings of beneficiaries from sources other than the social-security system
should be materially raised. The country can afford to be fair to its faithful,
aged citizens.

The minimum wage at 40 cents an hour must be raised to not less than 75
cents an hour. In terms of the pre.sent cost of living, the 40-cent rate is com-
pletely unrealistic anywhere in the United States.

Rent control, a critical item in the whole question of family life, must be
continued by extending the Federal law after March 31, 1949, and must be
strengthened to prevent improper increases. The hundreds and hundreds of
cases in my own district in which my own office has had to prevent tenants from
being victimized by some landlords through improper administration of the rent-
control law, shows the need for a stronger law to protect tenants. I have
fought before and will fight again to strengthen the law in this way.

CONCLUSION

The country is at peace and is enjoying a high level of real prosperity but
there are very serious problems which make us all feel that both the peace and
the prosperity are in grave peril. Hence, we are proposing to take measures to
deal with these problems. These measures will largely be taken in the next 2
years. They will require vigorous independence, initiative, ideas, and character
in our President and legislators, and a profound understanding of our Govern-
ment and our Constitution. They will also require outstanding qualities of
discipline, understanding, and patriotism among our citizens. It is the possession
of these qualities which has made and will keep us great. The American people
will be considering these problems with their heads and their hearts, fully
cognizant of what is at stake, and with complete independence untrammeled by
party allegiance or traditional connections with any group or any party, but
with an eye single to the well-being of our Nation. It is for this reason that I
have complete faith in the outcome. America will be greater tomorrow than it
is today.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3041

[Congressional Record, October 13, 1949]

The Eighty- First Congress, First Session — Final Report — Record and

Forecast

Mr. Javits. Mr. Speaker, the 81st Congress now reaches the halfway mark,
and it is time to appraise what it has done and what its work portends for the
future. The people have won public housing, a higher minimum wage, expansion
and improvement of the social-security system. Government reorganization and a
continuance of the bipartisan foreign policy for the maintenance of peace and
security witli special emphasis on the economic rehabilitation of the western
democracies. Other major legislation on civil rights, health, labor-management
relations, housing, and technical assistance to underdeveloped areas, have not
been acted on and await action in the next session.

The news of an atomic explosion in the Soviet Union has stimulated all
Americans to question the direction of our foreign policy. In the approval of
appropriations for the European recovery program and of a program of military
aid to the Atlantic Pact nations Congress showed that it believes in the American
policy of support by self-help and mutual cooperation for the democracies, and.
that their security is our security. Congress saw no reason as yet for under-
taking a drastic change in our foreign policy.

I have worked hard to insure that our policies shall seek justice at home
and a better standard of well-being for our people, while we lent the great weight
of our prestige and resources to the struggle for peace and freedom abroad.

RENT CONTROL

In my last report on this Congress I described in detail the provisions of Fed-
eral rent control which expires June 30, 1950. At that time the legislation had
just been passed. We now have had some experience with it and find that
the formula — which I opposed putting into law — mider which landlords have a
right to seek rent increases is not working proi)erly. Rent increases are being
granted on the basis of a particular landlord's claims that he is not earning a
fair net-operating income, and for other reasons in amounts which appear to
tenants unreasonable considering what they are getting for their money. This
formula is onerous enough but its effects are worsened by the failure or inability
of the authorities to adequately enforce the new feature of the rent-control law
sponsored by me which requires for the first time a sworn certification by the
landlord that he is maintaining all services to tenants before he may apply for
a rent adjustment. If landlords were rigorously compelled to give tenants the
services in painting and decoration, refrigerator repairs, garbage collection,
elevator and similar services, the operation of the fair net-operating-income
formula might not be found so onerous. I am therefore making every effort to
bring about strict enforcement of this new Javits amendment by the Office of the
Housing Expediter.

Under present conditions, it would be much better for tenants if we retiirned
to the original OPA basis in effect during the war years, of granting rent in-
creases only in the event of actual hardship. Unless there is a correction of the
present situation this may well be necessary.

In order to protect the people of our district against the new problems raised
by the Federal rent-control law of 1949 the facilities of my Congressional Rent
Clinic were expanded and branches are now operating throughout the district.
A corps of lawyers is working in these clinics on a voluntar.v basis rendering
excellent service to all the people of our district, and have already helped more
than fi.OOO residents of the district with their rent problems. These lawyers
function under the direction of Hyman W. Sobell, Esq., chairman of the clinic.
A schedule is available upon application to my office regarding the location of
these clinics, the hours of operation, and the lawyers in charge.

HOUSING

A great victory for housing was scored in the 1st session of the 81st
Congress in that 810,000 federally assi.sted, low-rent housing units to be built
within 6 years — public housing — and a .$1,-500,000,000 slum-clearance program
were approved. The people of our district have a right to be proud of the
leadership which, with their support, I have been able to furnish in this fight. In
order to pass tiie bill, the votes of 2-3 Republican legislators were absolutely

3042 SCOPE OF SOVIET ACTWITY IN THE UNITED STATES

essential and these were marshalled as a result of the activity in housing which I
have engaged in in the Congress since I first came here in January 1947.

Action has been taken also in the Congress to liberalize mortgage guaranties
for veterans and other citizens renting or buying private housing under FHA.
and to extend this program to March 31. 19.50. However, a great omission in the
whole housing program has been the failure to take action for the benefit of
families in the moderate income brackets who are caught in the squeeze of being
ineligible for public housing — which indeed they do not seek — and being unable to
buy or rent private housing within their means. Over .30 percent of all American
families fall in the category, some 15 million of a total of 40 million families in
the country.

Together with 9 other colleagues I have sponsored and fought for a measure
to make available $3 billion in direct, very low interest loans for the construc-
tion of housing for families in the moderate-income bracket. This would make
possible the construction of not less than 400,000 of such units in a space of
6 years or less. With this impetus we could finally attain a balanced housing
program for all elements in the community needing Government aid and reach
our construction goal of 1,500,000 new home units per year which is essential if
we are to lick the housing shortage in our time. This proposal for direct
Government loans has obtained a great deal of support in the Congress and I look
forward to the prospects of action in the next session.

MINIMUM WAGE AND EMPLOYMENT

A great step forward was taken by the increase of the minimum wage in this
session from 40 cents to 75 cents per hour. An effort, however, was made in
the House of Representatives to restrict coverage of the law, the most im-
portant item of restriction being to exclude workers unless they were indispen-
sable— finally compromised to read "directly essential" — to interstate commerce.
This was estimated to exclude 750,000 from the over 22,601,000—1947 estimate—
at present under the minimum-wage coverage. Other specialized categories of
workers were also excluded. I fought against these restrictions and sought to
exclude them from the law but without success. Much has been achieved in the
amended bill by raising the minimum wage, yet certain exclusions are unfair
and the fight against them should continue. The least we can do for Americans,
considering the magnitude of our production and national income, is to give them
a concrete floor of $30 per week for a 40-hour week ; no American should be asked
to live on less, not matter where located, under present costs of living.

One of the grave defaults of this session of Congress has been the failure to
take up FEPC legislation granting equality of job opportunity without discrimi-
nation on account of race, color, creed, or national origin which has operated so
successfully in New York and is long overdue nationally. I testified before the
committee of the House considering this legislation in its support, and it has
now been reported favorably to the House. Yet no action has been taken.
Americans who believe in our constitutional democracy must fight vigorously
for such legislation in the next session. We suffer at home and abroad from the
absence of it and give Communist forces thereby a powerful propaganda weapon
with which to try to destroy our society.

In this respect I propose that the legislation be taken out of partisaji cousidera-
ations and made a bipartisan issue, as indeed it must be if it is to be passed so
that liberals and progressives of both major parties may combine to win this
struggle for freedom of job opportunity to the limit of their abilities for all people
regardless of color, national origin, or religious faith.

The heated controversy over the Taft-Hartley law will now be transferred to
the second session. I have made my opposition to this legislation clear many
times ; and restate that my fundamental objective is to see that colloctivi? bar-
gaining by employers and employees remains and is conducted fairlv and with
the least interference save for the right of the Government to cope with national
emergencies due to labor conflict in the interests of the Nation as a whole and
without coercion.

PUERTO RICO

This Territory has special employment problems with which a considerable
number of our citizens in the district are directly concerned. Citizens who have
moved from Puerto Rico to New York City need assistance in getting settled so
that they may have every opportunity to make the great contribution of which
they are capable to our community.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3043

Also, residents, of Puerto Kite should uot be subjected to substandard economic
conditions, and for that purpose Federal aid for economic betterment, education,
and other assistance to Puerto Rico is necessary. I am engaged in helping m ith
the solution of these questions.

HEALTH AND EDUCATION

Two critically important fields of social-welfare action weie not touched in
this session— legislation accepting the national responsibility for the people's
health and providing Federal aid to education. These are very likely to come
up in the next session.

I have expressed myself before as being in favor of the acceptance by the
Government of the national responsibility for the people's health. The Presi-
dent's health plan, offered in the form of a compulsory payroll 1 ax— like social
security — estimated at 3 percent per year, has encountered great opposition, espe-
cially on the part of the medical profession. As our country enjoys a high quality
of medical service today, considering the standard of medical care in other coun-
tries, it shall be my aim to keep the quality high while increasing the quantity
to provide adequate medical facilities for many of our citizens now deprived of
them because of cost or because of their location in rural areas ; while, at the
same time, to seek to retain freedom of choice of a doctor for our people and
not mislead them with glittering promises of immediate large-scale services which
cannot be performed because of shortages of doctors, nurses, dentists, hospitals,
and facilities. It is gratifying to report that by action of the House of Repre-
sentatives the Federal hospital-construction program shows promise of being
doubled from .$75 million per year to S150 million per year.

Federal aid to education has had no action due to the issue of whether the
Barden bill should be passed which prevents States from using any of the Fed-
eral aid for any services — even health services — except for public schools. I
have expressed myself as being opposed to such a restriction. The Supreme
Court has ruled that there should be an equality of service like bus service for
all schools. In view of the very large number of children who attend other
schools — that number in New York City, for instance, being almost 400,000 out of
an aggregate elementary-school population of 1,300,000 — our States should re-
tain this flexibility in the use of Federal funds the same as they have it in the
use of their own funds for school purposes. I shall be guided by these principles
in fighting for Federal aid to education.

SOCIAL SECXTEITY AND TAXATION

A great victory was gained by working people in the passage by the House of
the broadened social-security bill. The retirement benefits were extended to
some millions of the self-employed other than professional people, to employees
of State and local governments and of nonprofit organizations on a voluntary
basis — in the one case by action of the State and in the other by action of the
employees themselves — to domestic servants who have reasonably steady jobs, to
agricultural processing workers and to certain other employees including those
in the Virgin Islands, and, if requested by the insular legislature, in Puerto Rico.
Another important extension of the law was to make it apply to salesmen who
by a law passed in the Eightieth Congress had been excluded — a law, inci-
dentally, which I voted against. Benefits were also increased ranging from a
50-percent increase for the highest pension groups to 150 percent for the lowest
pension groups and increasing the minimum benefit from $10 to $25 and the
maximum from $85 to $150 per month. Also, and very important, the amount
which a beneficiary could earn and still not be deprived of his social-security
payments was increased from $14.99 to $50 per month.

These changes were not all which could be desired, but they go a long way
toward answering the legitimate complaints of our citizens who had spent their
best working years in the service of our whole community — every working per-
son serves in this way.

In the coming session I shall seek action on my bill exempting from Federal
income taxes the pensions of Federal, State, and city employees up to $2,000 per
year and also disability pensions.

Also, while we are on the direct subject of taxes, I have made great efforts
to relieve all of us of the wartime luxury taxes on such things as fur coats
costing not more than a reasonably priced cloth coat, baby oil, inexpensive
cosmetics, popular-priced handbags, etc. I propose to continue this fight as such

3044 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

taxes should be eliminated from the cost of living of moderate-income families.
The efficient operation of Government makes for the economic utilization of
the funds authorized by the Congress. To this end I did my utmost to see that
the recommendations of the Hoover Commission on Reorganization of the Fed-
eral departments vpere given full weight. To effectuate these savings Congress
passed basic authority to the President and some progress has been made on
unifying the armed services, also some departments, such as the Civil Service
Commission, the Labor Department, and the Post Office Department have been
reorganized.

POST OFFICE AND CIVIL SERVICE

The last weeks of this session were characterized by a struggle to get an
improved vpage for postal and other civil-service employees. I joined in this
effort by testifying before the appropriate committees, acting through discharge
petitions to bring the necessary legislation up for consideration on the floor
of the House of Representatives and by personal efforts with other Members.
It was finally possible to make a beginning of reform in two ways : One, by
the enactment of legislation increasing the salaries of postal employees by an
average of $141 per year, and, two, by making some other reforms to eliminate
inequities in pay schedules and conditions of employment. It was also possible
to pass the Reclassification Act resulting in a general increase for civil-service
employees of about $120 per year. These developments were very gratifying
tome.

SMALL BUSINESS

One of the important contests engaged in in this session was the effort to
retain the vitality and position of small business while giving to large business
legitimate relief from a decision of the Supreme Court seriously hampering
its operations in respect of the right to charge delivered prices. This result
was accomplished by carefully limiting the effect of the remedial legislation
and the development of a suitable formula to protect small business, in which
I actively participated in the House. The legislation will not come up in the
Senate until January 1950. Every citizen and certainly every small-business
man should take an interest in this legislation so important to the proper
position of small business which is the backbone of our economy.

VETERANS

The problems of our veterans have continued to be one of my foremost
concerns. The continued rising cost of living was much felt among our disabled
veterans of both wars, their widows and children. In an effort to alleviate
this hardship I supported and worked for legislation granting a long-needed
increase of these pensions commensurate with the added cost of living of the
past years.

As a result of the interpretation of certain provisions in an appropriation
bill, the Veterans' Administration issued regulations seriously curtailing the
educational benefits for veterans under the GI bill of rights. As a result of
vigorous protests, many of these restrictions have been lifted. In addition, I
have joined with others of my colleagues in introducing legislation which would
assure to all veterans the educational benefits originally intended for them
and I will continue to do my utmost to see that these GI rights are not
infringed upon by arbitrary administrative decisions or by oversights in the law.

CIVIL EIGHTS

In an effort to strengthen and buttress our American democracy I have fought
hard this session on several fronts for the safeguarding of fundamental civil
rights. In the spring of the year I protested vigorously and with some effect
the segregation of Negroes practiced in V^^ashington. Much still needs to be
done on this score until the blight of discrimination is totally eliminated from
our Nation's Capital. I shall remain vigilant in this regard.

At present I am working with the West Side Committee on Civil Rights
making a survey in part of our community in this field. From this survey we
hope to evolve an effective and strong program to meet local conditions and to
gain facts for use in the fight for national legislation.

The House passed an anti-poll-tax bill which is now before the Senate .Judici-
ary Committee. This Senate committee has approved an antilynching bill but
that measure has not yet come up for a vote in the House. Only by continued

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3045

work among the people :md in the Congress can these civil-rights bills be enacted
into law.

The struggle for antilynching. anti-poll-tax, and FEPC legislation continues in
the Congress. It is an' important battle from which there must be no retreat
and no wavering until all our citizens, without exception due to race, color,
creed, or national orgin. enjoy all the rights and freedoms which are their birth-
rights as American citizens.

FOOD PRICES

One of the vitally important problems we faced in this session was the enact-
ment of a bill renewing the support for prices of farm products. I vigorously
opposed up to the last days of the session the inflexible 90 percent of parity
guaranty to farmers, on the ground that this bore unfairly on the living costs
of city consumers, a large proportion of which was for food, while it operated
in favor of farmers who were enjoying almost four times their aggregate pre-
war income, I believe in the need of the interests of our national economic sta-
bility for a concrete floor under farna prices, but these supports should be flex-
ible and not rigid in order to meet the needs of farmers without unduly
penalizing city dwellers.

ECONOMIC SECURITY

Aside from social security, unemployment insurance and other types of
protection, our people are critically interested in the stable operation of our
private economic system to avoid the shattering impact of depressions. I liave
introduced legislation seeking to give our economic system stability by bringing
about better coordination between Government and business through self-help
and mutual cooperation supported by law. I consider this one of the most
urgent tasks before us and shall work on it diligently in the next session.

TOTALITARIAN MOVEMENTS

I have continued to protest against the danger of the resurgence of Nazi
activity in the management of German industry and of German economic and
social life. I shall continue this protest, bringing before the Congress as I have
in the past significant evidences of it. I am convinced that one of the grave
dangers that we face is of a resurgence of militant nationalism in Germany and
the danger that we may find the Germans a Soviet ally for a renewed effort
at world aggression. I shall do everything possible to see that we insist on com-
pliance with the occupation statute which is the overriding law over all west
German governments and that we continue even if it takes some years the
supervision of Germany to guard against a resurgence of militant nationalism.

The people of our district may recall my fight with respect to the Bollingen
poetry award to Ezra Pound under the sponsorship of the Library of Congress
resulting in the abandonment of this practice by the Library. I fought this
procedure because I did not believe that an agency of our Government should
lend itself to rewarding a person charged with treason against the United States
in World War II.

DISPLACED PERSONS

The new displaced-persons bill for which I fought passed the House of Repre-
.sentatives on .June 2. This measure liberalizes the definition of displaced
pers )ns. requires nondiscrimination in their selection, increases the DP's eligible
for admission to the United States to 337.000 over a 3-year period, includes
5.000 war orphans and 4.000 anti-Communist European DP's stranded in China —
points for which I have long worked — and improves the situation of inunigrants
already here who have no place to return to. At present this measure is bottle-
necked in the Senate and we must continue in January our vigorous efforts to
get it passed there.

FOREIGN POLICY

The maintenance of peace and security in the world continues to dominate
our work in the Congress. As a member of the Committee on Foreign Affairs
of the House of Representatives our district has had a great opportunity
through me to contribute to our bipartisan foreign policy.

THE ATLANTIC PACT AND EUROPEAN MILITARY AID

It was necessary to support the morale of the democracies of Western Europe
by giving them some means for defense of their own national integrity. It is

3046 SCOPE OF SOVIET ACTIVITY IX THE UNITED STATES

not proposed to divert Western Europe from its efforts at economic rehabilita-
tion and recovery to military preparedness. On the contrary, by this program
the peoples of Western Europe are to be encouraged to proceed with their
economic recovery with a sense of freedom, security, and national self-respect.
That is the purpose which I have sought and which I will continue to endeavor
to seek by this program.

FOREIGN ECONOMIC KECO\TRY

It is now recognized that the European recovery program for which appropria-
tions were made in this session for the fiscal year ending .June 30, 1950, is but
^ne part of a great effort of American foreign policy to enable our sister free
nations and peoples to stand on their own feet as effective producers and to
get and maintain a decent standard of living through their own efforts. The
ERP was the first necessary step in the rehabilitation of these democracies.

We are now engaged in trying to launch the next effort which must be initiated
while the ERP remains in effect and gradually take over from it : First, the
opening of the world to trade among the nations. In this re.spect, the renewal
of the reciprocal trade agreements program in this session which I supported
and for which I fought is most important. In the next session I shall do all
I can to bring about membership of the United States in the International Trade
Organization.

Second, I have also worked hard to bring about a merger of the International
Bank for Reconstruction and Development and the International Monetary
Fund to make some $4 billion more available than is available today for sup-
porting world economic recovery without requiring additional appropriations
by the United States.

Finally, there is the point 4 program, for which legislation is now before us,
which seeks to make available American technical skill in the effort to develop
underdeveloped countries, the principal efforts in the first instance to be directed
toward agriculture, health, and education. Exports of our skill cost us little
and can replace hundreds of millions in expenditure for assistance and recovery.
Skill is the best export we have and I propose to support actively this program
as the principal means for helping to attain a higher standard of living among
the free peoples and therefore greater and more secure prosperity for us.

CHINA AND THE FAK EAST

This area has presented one of the gravest losses to democracy this year.
It is now more essential than ever that the forces of democracy be strengthened
in the whole area of Asia outside of China so that democracy may have new
sources of strength with which to try to win back China to democi-acy. This
can best be done by effectively helping to raise the standards of living of the
peoples of India, Burma, the Philippines, Indonesia, and of the other Asiatic
peoples outside of China and giving them a firm devotion to democracy because
of its ability to greatly improve their own conditions. The same result can by
these means be attained in those areas of China still free of Communist oc-
cupation. The will to resist either Communist aggression or Communist en-
croachment can be assured in this way. I have, therefore, advocated a program
of far eastern economic cooperation as the most constructive policy we can
pursue in that area at this time. The visit of the great statesman. Pandit
Nehru, Prime Minister of India, has dramatized the practicability of this ap-
proach for us. India can truly be the cornerstone of this structure for peace
and improvement in Asia.

THE NEAR EAST

The establishment of peace and security in the new State of Israel continues
to be of direct concern in the interest and security of the United States. It is
now clear that to bring peace to this area a program of economic recovery
and development is the best means for binding the people of Israel and of the
Arab States together in their common interest. I have supported, and shall con-
tinue to support, the efforts of the United Nations in this regard, and to urge
similar efforts on the part of the United States. I have opposed, and shall
continue to oppose, any effort to charge Israel with an undue proportion of the
responsibility of the Arab refugee problem which was brought on by the inva-
sion of Israel by the Arab armies.

It has been my constant care to see that the holy places in Palestine, includ-
ing Jeruselem, are fully safeguarded imder international control and that ac-
cess to them by all pilgrims be free and open, but this does not require the

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3047

United Nations to undertake a radical and hazardous experiment in the munic-
ipal administration of Jerusalem by separating the new city from Israel,
which could well jeopardize the cessation of hostilities in the Near East.

THE UNITED NATIONS

The strengthening of the United Nations to develop it into a world federation
under law and with power to keep the peace gains renewed impetus from the
announcement that the Soviet Union probably has the atom bomb. I have
supported, and will continue to support, the movement toward encouraging
world federation pending in the House of Representatives and am one of the
authors of the resolution for that purpose. The terrible destructiveness of the
atom bomb makes the surest means of attaining the United Nations goal of
international peace and security an effective world federation and this should
be the fundamental aim of our foreign policy.

It continues to be a cause for regret that Eire is not yet admitted into the
United Nations and that even yet this prevents a plebiscite from being taken of
all Ireland under United Nations auspices for the purpose of bringing about
its unification.

NATIONAL DEFENSE

The development respecting the atomic bomb in the Soviet Union and the
controversy over the usefulness of the B-36 bomber have brought our national-
defense policies to the fore. While continuing firm in the conviction that
national security through our Military Establishment is only one element in our
foreign policy and that economic development and cultural interchange are
needed to make this policy one of peace, it is yet essential to see that both in
size and in effectiveness our Military Establishment is adequate to our needs.
I am being guided by two principles in my action here — first, that our Military
Establishment shall be consistent with modern requirements of security in the
atomic age which has completely changed the whole concept of defense : second,
that we shall continue to have effective civilian control of our National Military
Establishment.

CONCLUSION

Our problems continue to be highly complex and vast in their implications.
Yet fundamental principles can be adhered to and remain an effective guide
to action. Our constitutional institutions continue to show vigor and the flexi-
bility and adaptability to deal with the challenges which face us as they arise.
Our people retain the faith in our Republic and the independence of action so
essential to lead us on the road of freedom and justice. They give every evi-
dence of being fully able to make changes as changes are required. Under these
circumstances, I am convinced that our Nation is equal to its great responsibil-
ities and opportunities.

[Congressional Record, May 12, 1949]
Thubsday, May 12, 1949

The Eighty-Fiest Congress — First Session — First Report — Record and Fore-
cast, Speech of Hon. Jacob K. Javits of New York, in the House of Repre-
sentatives

Mr. Javits. Mr. Speaker, the first session is well past the halfway mark and
it is a good time to survey where we stand. Only two major pieces of legislation
have been completed with resulting Presidential approval making them law —
the Housing and Rent Act of 1947, extended by Public Law No. 31 ; and the
Economic Cooperation Act carrying the authorization for another year's continu-
ance of the European recovery program. Public Law No. 47.

Other major legislation, on social security, health, the Labor Management
Act, increase of the minimum wage, housing, anti-poll-tax, and FEPC remain
in different stages of the legislative process. It is fair to say that a Congress
with a majority elected on what most of our people considered to be a mandate
for a program of social welfare turns out to be so far a Congress of frustration.
I have diligently devoted my efforts to trying to break this log jam and to trying
to get legislation enacted which the people want and should have.

3048 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

RENT CONTROL

The Housing and Rent Act of 1949 extends rent control for 15 months to June
30, 1950. I took a most active part in the enactment of this legislation and
offered various important amendments.

The beneficial changes in the law may be briefly summarized as follows :

First. Certification of services : This new feature of the rent-control law
was sponsored by me and requires for the first time a sworn certification by the
landlord that he is maintaining all services to tenants as a condition to obtain-
ing a rent increase. This feature of the new rent law will redound to the bene-
fit of all tenants in our district and in the country. One of the most serious com-
plaints which has come to my attention has been the fact that landlords have
been tiling for and receiving increases of rent while tenants complained the
services they have been receiving have been reduced substantially. For the
first time, tenants will be assured of adequate services if the landloard seeks an
increase of rent. Nor does this prevent tenants from seeking proper redress as
they could before, in the event of a decrease of services even though the landlord
does not apply for a rent increase.

Second. Fair net operating income : Instead of the former hardship provisions
of the rent regulations, the housing expediter has set a formula with which the
landlord must comply in order to seek relief. The landlord will have to submit
records to show that his property is not showing, currently, a fair amount of
receipts over expenditures, rather than compare his current income and expenses
with previous years.

Third. Evictions : Tightened eviction controls were restored to the housing
expediter for the first time in 2 years. In New York we have had a temporary
city rent commission in this connection and now there are controls both by the
city and the Federal Government so that the tenants get greater protection
against improper evictions.

Fourth. Tenants' right to appeal : For the first time in the history of rent
control the tenants have been granted the absolute right to appeal from any
orders issued by a rent office.

Fifth. Treble damages : The housing expediter is once again authorized to
bring action for treble damages on behalf of tenants. The tenants, of course,
still have the right to bring their own actions, in which event, the court is to
award court costs and counsel fees besides treble damages.

Sixth. Decontrolled apartments : Apartments which were formerly decon-
trolled because of the termination of voluntary leases between December 31,
1947, and April 1, 1948, are back under control at the lease rental. Apartments
which were decontrolled because they had been vacant for a 24-month period
between February 1, 1945, and March 30, 1948, or had been occupied or rented
to a member of the landloi'd's immediate family are now recontrolled. As a
result, many tenants who have been paying very high rentals because apart-
ments had been decontrolled will now have their rents reinstated at rentals
which prevailed prior to the decontrol ruling.

Permanent residents in nontransient hotels are now back under control with
the ceiling rent fixed as of March 1, 1949.

Seventh. Converted dwellings : So-called conversions by landlords as a result
of which additional housing accommodations are created are now subject to
examination and approval by the rent office before decontrol takes effect.

In order to protect the people of our district. I have expanded the facilities
of the congressional rent clinic, which has helped more than 4,000 residents
of the district, so that branches will be operated throughout the district. I am
gratified by the very favorable response received during the past 2 years as
a result of the work of this rent clinic, and express, too. my profound appreci-
ation for the public-spirited group of lawyers in our district rendering this
public service without fee under the direction of Hyman W. Sobell, Esq., chair-
man of the congressional rent clinic.

HOUSING

Housing continues to be our No. 1 domestic unsolved problem. Together with
9 other Members of the House of Representatives I have sponsored a com-
prehensive housing bill providing for the construction of 800.000 federally
assisted low-rent housing units — public housing — a $1,500,000,000 slum-clearance
program, .$3 billion in direct, very low-interest loans for the construction of
housing units for families in the middle-income brackets and opportunities for
1,500,0(K) new home units i>er year would be made possible.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3049

• The Senate has already passed a public-housiug and slum-cloarance bill aud
I aiu now exerting every effort in cooperation with national civic and veterans'
organizations to bring ai)oiit housing action for all inconae groups in the House
of Representatives ; the chances for success with bipartisan support are the best
since 1937. The catastrophic emergency remains as great as ever, with over
2,500,000 families, largely those of veterans in the middle-income group, living
doubled up with tlieir relatives or friends.

HEALTH AND EDUCATION

Two other critically important -fields of social welfare await action l)y the
Congress — legislation accepting the national responsibility for health, and pro-
viding Federal aid to education.

The President's health plan has been offered in the form of a compulsory pay-
roll tax lilve the social-security tax estimated at 3 percent, for which medical
and hospital services and eventually dental and nursing sei-vices are promised.
Opposition on the part of the medical profession continues unabated. Our coun-
try enjoys a high quality of medical service today considering the standard of
medical care in other countries. It is important, therefore, that the quality
remain high while the quantity is increased to provide for many of our citizens
now deprived of adequate medical care because of cost or because of location in
rural areas not now adequately seiwed by medical facilities.

I have stated before and it continues to be my position that I shall support
the acceptance by the Government of the national responsibility for the people's
health without compromising freedom of choice. It must be made possible
within this framework to provide for increased hospital and medical care for
our people, and at the same time not to mislead them with glittering promises
of immediate large-scale services which cannot be iierformed due to shortages
of doctors, nurses, dentists, hospitals, and facilities.

I have always advocated and continue to advocate Federal aid to education.
The bill already passed by the Senate appropriates $300 million toward achiev-
ing a minimum level of education in all the States, supplementing State funds
with Federal grants based on State per capita income. It is important to be
sure that each State is doing the limit of what can be expected of it for itself,
and that this legislation shall not centralize authority over our educational
system in the Federal Government or regulate State educational systems other-
wise meeting fair standards.

LABOR-MANAGEMENT LEGISLATION

The heated controversy over the Labor-Management Relations Act of 1947 —
the Taft-Hartley law — has not been disposed of, a stalemate having developed
in the House of Representatives.

I originally voted against the Taft-Hartley law and was pledged to its repeal.
1 consider the recent effort to pass the Wood bill an effort to maintain the essen-
tially punitive basis of Taft-Hartley by another name — an act which has evoked
such violent protest from the 16 million hard-working, law-abiding Americans
who are union members. Our fundamental objective must be to see that collec-
tive bargaining between employers and employees remains and is conducted
fairly, and with the least Government interference ; save the right of the Gov-
ernment to cope with national emergencies due to labor conflict in the intei'ests
of the Nation as a whole, but without coercion.

Other fundamental issues with respect to labor are the increase of the mini-
mum wage and the enactment of a Fair Employment Practices Commission law.

We should expand the protection for employees made available by the Fair
Labor Standards Act, as the act has been restrictive in its operations thus far.
The cost of living and the general economic level of our country certainly dictate
an advance to a minimum wage of 75 cents per hour as a fair one and I have
supported such advance.

FEPC legislation, which has operated so successfully in New York, is long
overdue. Our constitutional democracy suffers at home and abroad from the
absence of this legislation. We give thereby a powerful propaganda weapon to
Communist forces seeking to discredit our system.

I have offered an FEPC bill myself, H. R. 192, and have testified in support
of it. I will continue to join without reserve in the struggle for one of the gi'eat
privileges of our democracy for all i>eople, regardless of their color, their national

72723— 57— pt. 43 4

3050 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

origins, or their religious faiths — freedom of job opportunity to the limit of their
abilities.

NATIONAL THEATEE, OPERA, AND BALLET

We are seeking a healthy citizenry with sufficient time for recreation, and fair
compensation for our working people so that they may enjoy the satisfactions
of which our industrial system is capable. Accordingly, I have offered and
worked hard for a bill to ultimately bring about the establishment of a national
theater, opera, and ballet, and a bill to help our youth avoid the pitfalls of
juvenile delinquency.

People everywhere have enthusiastically endorsed the aim to establish facili-
ties for national theater and music, and to make them available to the tens of
millions of Americans who do not now enjoy these arts.

YOUTH ASSISTANCE

The National Youth Assistance bill seeks $50 million to assist States, munici-
palities, and social-welfare organizations in their activities for prevention of
juvenile deliquency and to afford recreational, educational, and citizenship
orientation opportunities for our youth.

I have just completed a countrywide survey of the youth activities sponsored
by State and city governments like the activities of Touth Aid, Inc., an organi-
zation of public-spirited citizens in our district, of which I am a director. There
is agreement by most of the State and municipal authorities that Federal legis-
lation of the character I have proposed is necessary.

VETERANS

My concern with problems of employment, housing, health, youth, and recrea-
tion has not, however, overshadowed my great interest in our veterans. A large
amount of service continues to be given by my congressional office in individual
veterans' cases. I have joined in efforts to assure veterans the utmost in satis-
factory hospital and other service benefits. I am gratified that thousands of
veterans in our district join me in considering the rejection of the first Rankin
pension bill as being a service to the interests of our country, wiiich will re-
sult in passage of a reasonable bill.

The care and protection of our veterans remain to me, both as a citizen and
fellow veteran, a subject of primary concern.

SOCIAL SECURITY

I have worked, and will continue to work hard for a broadening and improve-
ment of old-age and survivors' insurance benefits. The reserves in the Federal
system are great enough to warrant at least a 50-percent increase in these
benefits.

In order to be helpful to our pensioners and retired citizens I have offered
legislation exempting from Federal income taxes all Federal, State, and city
employees' pensions up to $2,000 per annum and also disability pensions.

And while we are on the subject of taxes, it is fair to consider the plight of
the ordinary consumer 4 years after the war still paying what are called luxury
taxes on baby oil, inexpensive cosmetics, popular-priced handbags, and, yes, on
fur coats costing not more than an inexpensive cloth coat. Such taxes ought
to be eliminated from the cost of living of the moderate-income family.

PKOTECriON OF MINORITIES

As the postwar legacy of Nazi Germany we continue to harvest in our
country a group of hatemongers and spreaders of malicious propaganda seek-
ing to turn minority against minority, whether of color or religion, and the ma-
jority against all minorities. Accordingly I joined with others of my col-
leagues in introducing a bill making it unlawful to disseminate malicious and
false statements prejudicing the public mind against minorities whether Ne-
groes, Catholics, Jews, Greeks, Italians, or of other races, religions, or national
groups. Such legislation is designed to keep our free speech unimpaired and
our free press unsullied.

TOTALITAEIAN MOVEMENTS

In the past few months I have had occasion to protest vigorously against the
resurgence of Nazi activity which has been permitted by the United States

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3051

military government in Germany, in the management of German industry and
German economic and social life.

I protested against the participation by former Nazis and their sympathizers
in the German Export Fair in New York City and succeeded in getting the lists
of those German businessmen who sought to come over to the fair culled and
culled again to eliminate many whose records were questionable.

My efforts have also been directed toward fighting the Communist danger to
our freedoms. I have not only fought it in the support of our foreign policy,
but have also vigorously protested the outrages against justice such as the
"trial" of Cardinal Mindszenty by the Government of Hungary. I introduced
a resolution condemning this trial and as a member of the House Foreign Affairs
Committee joined in bringing about action on the resolution reported by that
committee and passed by the House of Representatives condemning the Minds-
zenty trial as an outrage on the civilized world. I shall continue in this struggle
against the forces of the extreme left and the extreme right, which meet in their
efforts to extinguish our freedoms.

DISPLACED PEKSONS

I denoimced the Displaced Persons Act passed in 194S as brazenly discrimina-
tory. It excluded tens of thousands of displaced persons who had really suffered
under the Nazi terror while it admitted others who actually or ideologically
played with the Nazi fifth columns. Great efforts have been made to amend this
legislation in this Congress. I have introduced a displaced-persons bill to admit
400,000 DP's on an entirely nondiscriminatory basis and without restrictions on
rheir opportunities in the United States. I have also introduced again in this
Congress the bill for the admission of war orphans for adoption by American
families.

A new DP bill has just been reported out and should in substance soon pass
the House of Representatives from where it will go to the J^enate. This bill
increases the aggregate number of DP's to be admitted from 205,000 in 2 years
to 339,000 in 3 years, and provides for the admission of certain children adopted
by American citizens. An especially pertinent amendment changes the cutoff
date for DP status qualification which caused so much miscliief in the present
law. from December 22, 1945, to January 1, 1949. The bill also allocates a quota
of 4,000 to refugees from Shanghai, China, a recognition, even if only partial,
of the critical situation there.

FOREIGN POLICY

As a member of the Committee on Foreign Affairs of the House of Repre-
sentatives the great events since the Congress convened in January have been
of fundamental concern to me.

One of the major struggles in our foreign policy has been successfully sur-
mounted in both the House and the Senate in the enactment of the authorization
for another year of the European recovery program.

ATLANTIC PACT

The Atlantic Pact will soon be under consideration in the Senate which alone
Avill be called upon to approve or reject it. I am assured that there will be full
and complete opportunity for hearings in the Senate before the Senate Foreign
Relations Committee of all people and interests who seek to be heard, and that
there will be a full debate in the Senate. Though the House of Representatives
will not pass on the pact itself it will pass on implementing legislation.

IXTERXATIONAL TKADE ORGANIZATION AND RECIPROCAL TRADE AGREEMENTS

As we consider our foreign affairs and the effectiveness of these great policies
to rehabilitate our sister democracies, we must look forward to the next step of
their ability to stand on their own feet as effective producers with a decent
standard of living through their own efforts. The United States has taken the
lead in this respect in the setting up of the International Trade Organization
designed to facilitate the most extensive and helpful world trade among the
nations.

I represented the United States as a member of its delegation in Habana when
the organization was formed, and I have introduced legislation in the Congress
to bring about United States membership in the International Trade Organiza-
tion.

3052 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

It also must be recognized that the Reciprocal Trade Agreements Act, the
extension of which for 3 more years I supported, is one of the keystones in the
edifice of economic and political freedom which we are trying to construct in
the world.

POINT IV

Finally, there is the "bold new program" referred to by the President in his
inaugural address regarding the making available of American skill in the effort
to economically and industrially develop underdeveloped areas. Exports of
skill cost us little and are priceless to the recipients. In this way we help
them best to help themselves.

IX DEPENDENCE OF ISRAEL

No discussion of our foreign affairs is complete without attention to the tri-
umph of justice in which we had an important hand — the establishment of the
independence, and now of peace and security in the new State of Israel. Early
in the congressional session I fought any interference by Great Britain, out of a
misguided sense of her interests in the Middle East, with the beginnings of a
peaceful solution of the conflict between Israel and the Arab States.

The valor of the people of Israel, the influence of the United Nations, and the
material and moral suport of the people of the United States have won them
their freedom and their opportunity.

ITiELAND

The struggle for the independence of Ireland bears many similarities to the
struggle of Israel. Eire should be admitted into the United Nations and at
the least a plebiscite should be taken all over Ireland under United Nations
auspices for the purpose of bringing about its unification.

UNITED NATIONS

The enhancement of the prestige of the United Nations resulting from its
successful efforts with respect to Palestine and the admission of Israel to its
membership, have contributed materially to the more optimistic views respect-
ing its future. Under the conditions of the atomic and air age, and with geo-
graphical boundaries materially reduced in importance, the development of the
United Nations ultimately into a world federal government becomes the surest
means of attaining its goal of international peace and security.

NATIONAL DEFENSE

I am convinced that in the interests of our Constitution and our freedom,
civilian control of our national security and the limitation of military influence
to the technical requirements of the services are essential. National security
through our Military Establishment is only one element in our foreign policy.
The solutions we seek in the world are solutions through peace. We nuist see
that both in size and in effectiveness our Military Establishment is complete
within these proper limitations, but that never shall the United States be
rattling a sword in a scabbard.

All of us are aware that in a world of realism while we engage in great
efforts of foreign policy, we must also look to our national security. The mili-
tary budget ccmstitutes about one-third of our total budget for the next fiscal year.
The Hoover Commission on the Reorganization of Government has pointed
out great wastes which exist in our Military Establishment. In common with
others who have served in the armed forces, I am also aware of the need for
constant modernization of our concepts of what is the best military posture
for national security. These principles and efforts shall have my urgent
attention.

CONCLUSION

This is a general review of what has been done in the Eighty-first Congress
and what can be seen ahead for the future. Our people may rest secure in the
fact that our democracy is working. There are many failures and insufficien-
cies, much injustice which needs to be righted, and many challenging problems
to be met, but our democracy and our people show the vigor capable of meeting
them. So long as we remain steadfast in this position, our great Nation is safe.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3053

[Congressional Record, May 2, 1930]

ElGHTT-FIRST CONGRESS SECOND SESSION — FiRST REPORT — RECORD AND FORE-
CAST, Speech of Hon. Jacob K. Javits of New York, in the House of
Representatives

Mr. Javits. Mr. Speaker, the second session of the Slst Congress is now at
midpoint. In .this important election year Congress normally heads for an
adjournment early in July. By now the extent to which a legislative pro-
gram may he enacted becomes evident. So far in this session accomplishments
have been meager in domestic affairs most important to the people. And in
foreign affairs the Congress indicates it will in the main carry on already estab-
lished programs.

I have worked hard here to endeavor to realize for our people the objectives
of decent housing, stable employment, reasonable security, the maintenance of
international peace, and the preservation of our freedoms. Within the limits of
the labors of one among 435 Representatives I have endeavored to reflect the
needs, the ideas, and the aspirations of my district.

RENT CONTROL

The Federal rent-control law expires, by its terms, on June 30, 1950. In the
State of New York we passed on May 1, from Federal to State rent control. As-
semblyman Samuel Roman, of my own Washington Heights and Inwood, was
one of the leaders in the fight for the New York State rent-control law in the
State legislature this year.

The Federal rent-control law, though it resulted in some drastic and uncalled-
for increases due to the fair-net-operating-income provision, on the whole held
the rent line within reason. My amendment requiring landlords to certify to the
maintenance of all services before being entitled to apply for a rent adjustment
was one of the most important phases of the law to protect the rights of tenants.
This amendment is now in the New York State law.

The State rent-control law rolls back rents to the amount actually paid on
March 1. 1950. or March 1, 1949, whichever is lower. Increases ordered by the
Federal housing expediter unless agreed to by the tenant or ordered paid by
the city rent commission are not included. No restrictive increases are per-
mitted under the new State law. It does not contain the fair-net-operating-
income provision of the Federal law. It allows increases only after December 1,
1950. for a hardship amounting to actual loss in operations only. This is the
original OPA basis in effect during the war years. The New York State rent-
control law gives tenants a right of hearing in regard to increases in rent. It
has safeguards against evictions, and strict penalties against landlords violating
its provisions.

The State law permits increases, after December 1, 1950, due to severe hard-
ship on grounds of comparability. Its administration under a distinguished
public servant like the Honorable Joseph P. McGoldrick, former comptroller of
the city of New York, however, should assure tenants against abuses of this
provision.

In addition the facilities of my congressional rent clinics are being further
expanded and additional staff added to the branches now operating throughout
my district under the chairmanship of Hyman W. Sobell, Esq.

In view of the importance of rent control to the economy of the country and
therefore to the people of New York I shall work for and support Federal rent
control here. Even with New York out of the Federal rent-control system there
are still some 8 million dwelling units under Federal control.

HOUSING

I cannot report any real victory for housing in this session nearly comparable
to the authorization of 810,000 new Federal low-rent public housing units and
a $1,500,000,000 slum-clearance program by the Federal Housing Act of 1949.
The authority of the FHA to insure mortgages has been increased by about
$2,250,000,000, and this will help materially the private construction industry
and those who are out to buy homes of their own. But in the rental field, par-
ticularly for the family in the $2,000 to $4,000 per annum income bracket — which
includes most unhoused veterans' families — the problem remains almost as acute
as it did in 1945.

3054 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

I fought very hard for approval this year of a Federal program of direct loans
for long terms at very low interest, to assist the construction of rental housing
for families in this middle-income bracket, in this way reducing rentals for the
normal city apartment from $85 per mouth to about $63 per month. Even this
program was defeated in both the House and Senate.

Together with other Representatives here I shall continue this fight.

EMPLOYMENT AND LABOR

The present unemployment recorded in the United States Employment Service
offices is 3,515,000, which is not abnormal. Fears are expressed that this might,
however, go up to 5 million before the year's end. That figure used to be a
danger signal before the war. But at that time we had approximately 45 mil-
lion Americans gainfully employed ; today we have almost 60 million gainfully
employed.

Unemployment is certainly a bleak prospect, however, for the individuals con-
cerned, and we must give them adequate aid. The unemployment insurance sys-
tems will help, but these must be very much strengthened as the benefits differ
widely between States and many give far less than the optimum 26 weeks of
coverage.

Also, we must consider other means for making our economic system more
stable. I have proposed such legislation myself through the establishment of
a Federal Economic Commission and of goals for our economy.

AVe faced a crisis in the last few months in the coal strike which threatened to
paralyze the whole country — and in railroads and telephones. These situations
bear out what I have been strongly advocating — that Congress should give the
President power to seize mines or facilities where essential to the public health
and safety, but with the right to operate them only to the minimum extent
required for such health and safety.

FEPC

The House of Representatives finally had its opportunity to debate a Fair
Employment Practices Commission bill after monumental efforts to bring it up,
providing for equality of job opportunity without discrimination on account of
race, color, creed, or national origin. Such a law has been operating in the State
of New York very successfully for 5 years, and is also in effect in 9 other
States. Debate opened at the usual hour of noon on February 22, and continued
until 3 a. m. the following morning. At that time, in spite of all of our efforts
to the contrary, the House of Re])resentatives by a vote substituted for the FEPC
bill with enforcement powers a bill with investigatory powers only.

It is true that this was the first time in history that such a bill has passed
the House at all, but the absence of enforcement, leaving only investigatory
power, was a great disappointment to those of us who fought so hard for this
bill. We were then faced with the dire alternative of voting down what the
House of Representatives had passed and having no FEPC bill of any kind or
voting to send even this inadequate bill to the Senate. I chose the latter course
as did most of the liberal Members of the House in both parties. I am con-
vinced this was the right course ; otherv.-ise, any hope for P^EPC legislation would
have been killed for this session.

The battle has shifted to the Senate, and I am continuing my work here to
attain an FEPC bill with full enforcement powers.

EDUCATION AND HEALTH

The Congi-ess continues to overlook urgently needed legislation in this field.

No action has been taken on a national program for health either along the
lines of the plan which I have offered, providing for Federal- State aid to co-
operative plans, organized on a community and local level, or on the adminis-
tration's own health plan financed by a compulsory payroll tax.

No action has been taken either on Federal aid to education. I continue un-
equivocally in favor of such legislation and do not consider help to school con-
struction or health services already passed by the Senate — desirable as these
are — to be a substitute. The terms of the Bardon bill, which prevents State*
from using any of the proposed Federal aid for any services, even health serv-
ices, except for public schools, is still an issue delaying the bill. I have ex-
pressed myself as being opposed to the type of restriction imposed by the Barden
bill. With the overwhelmingly complex problems which oiw young people will

SCOPE OF SOVIET ACTRTTY IN THE UNITED STATES 3055

face when they become adults, fuiulaiiiental iuiprovenient in our educational
system particuhirlv in States which are below par is vital.

In the course of this session T have olfend a bill, H. R. 733G, to set up a Fed-
eral Board of p]ducation as recomnieiuled by the Hoover Commission and also
to abolish segresatioii and discrimiiuition in educational institutions receiving
Federal aid. llight now this to apply to institutions of liipher learning, which
received over $3,500,000,000 a year from the Federal Government in 1949. It Is
high time that this essential reform was made nationally, just as we have al-
ready made it in New York.

SOCIAL SECURITY

The gains effected by H. R. 6000 in extending olil-age and siirvivors insur-
ance to millions of self-employed, to employees of State and local governments
and nonprofit organizations on a voluntary basis, to domestic servants, to agri-
cultural-processing workers, and to certain other employees should pass at this
session. Increasing benefits from 50 percent for the highest pension groups to
150 percent for the lowest pension groups, and increasing the minimum monthly
benefits from $10 to $25, and the maximum monthly benefits from $85 to $150 is
a step in the right direction, although with present living costs far from ade-
quate.

Such social-security improvement is good, but we must go much further. Our
population is aging, job opportunities for older people are becoming less plenti-
ful, living costs are advancing, and it is becoming harder to pile up private
resources against advancing age. A strengthened social-security system upon
which retired people can really live is a must for our society.

There has been some criticism of H. R. 6000 as it could by a referendum of
those affected supersede some State and city retirement plans, but both Senators
from New York are trying to strike this out in the Senate.

EXCISE AND INCOME TAXES

This session has been characterized by a great drive to relieve the people of
the wartime luxury taxes on items entering into the ordinary cost of living which
are not luxuries at all.

The President has made certain recommendations regarding reductions of
excise taxes but the items he covered are far more limited than the need of the
moderate-income families indicates.

I have been supporting and fighting for the consideration of measures which
would effect this result. The committee has now tentatively acted in repealing
excise taxes on electric-light bulbs, purses and handbags, and baby oil and
powder ; and reducing them on motion-picture admissions, communications,
transportation, jewelry, and furs.

It will be said that excise tax reduction must be coupled with means for
raising additional revenue through taxes. These should be sought from econ-
omiesin the administration of government — recommendations of the Hoover
Commission — savings on the farm price-support program, review of Federal
charges for services to individuals and corporations, closing up tax loopholes',
and consideration of a graduated income tax on corporate profits. All of these
steps should be taken first before reconsidering the personal income tax.

Revenue is raised to meet Federal Government expenses. I have favored
major cuts in expenses in respect to basic items like high fixed farm parity
prices which could reduce the budget by up to a ))illion dollars a year, and cuts
in rivers and harbors projects which could reduce the budget by several hundred
million dollars a year. I have not favored across-the-board slashes reducing
essential Government services like those in the post office, without selectivity.

I have been seeking action on my bill exempting from Federal income taxes
the pensions of Federal, State, and city employees up to $2,000 a year and also
disability pensions. Recently, I introduced a bill, H. R. 7448, allowing a de-
duction from income subject to income tax to the extent of $600 per year, for
those with serious physical handicaps — the same allowance made for the blind.
The idea for such a bill came from a letter from one of my constituents.

POST OFFICE AND CIVIL SERVICE

A storm of protest broke out over the drastic curtailment of mail deliveries
to homes and offices announced by the Postmaster General as attributable to
budget limitations on April 18, 1950; effective in New York, June 1. It subse-

3056 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

quently became clear that the Post Office Department had not asked Congress
for the necessary deficiency money but had just gone ahead with this drastic
move. With much support from my district I have vigorously protested this
action, both in the House of Representatives and to the Postmaster General.
So much opposition has been aroused that I belie\e corrective action will not be
long delayed.

The House passed H. R. 87, the military credits bill, affording to postal em-
ployees a starting salary grade commensurate with their status after giving
them credit for their war service. It is likely that this principle will be ex-
tended to benefit all Federal employees.

SMALL BUSINESS

The fight to retain the vitality and position of small businesses while giving
all business relief from a decision of the Supreme Court raising doubt as to the
lawfulness of sales at delivered prices — not just f. o. b. prices — has been going
on continuously. The effort to limit the effect of remedial legislation so that it
would not jeopardize small business has resulted in a considerable struggle.
Those of us who are deeply concerned about the small-business position, though
we have been fighting as the opposition a rear guard action, have nevertheless
had considerable influence in bringing about changes to protect small business.
The President is recommending a small-business program which I am studying
carefully with a view to its support.

VETERANS

The House has approved by an overwhelming vote and sent to the Senate for
action the addition of 16,000 beds for veterans' hospitals, 1,000 of these in New
York. These include many urgently needed psychiatric facilities.

One of the principal problems of veterans so far in this session has related
to VA cuts in hospitals and medical and auxiliary staffs. I have protested
these cuts and urged the Veterans' Administration to seek a deficiency appro-
priation to avoid them. This is now being done with resultant withdrawal of
reductions in medical and hospital staffs.

Veterans who have suffered wounds in the protection of their country are
entitled to the best we can offer, certainly in medical care and equipment.
Many veterans are concerned about the recommendation of the Hoover Commis-
sion which would eliminate a separate hospital and medical service for veterans.
I share this concern and assure the veterans of my district that I will consider
not only the economies involved in such a move, but would have to be shown
affirmatively, that the veteran will get medical service equal to what he is get-
ting now plus particular consideration for his care as a veteran.

Veterans have also been concerned with VA regulations seriously curtailing
their educational benefits under the GI bill of rights. I have introduced legis-
lation similar to the Senate-passed Taft-Teague bill to give veterans their full
opportunity for educational benefits, and I am working here to get it enacted
and will guard against any effort to emasculate it by amendments.

CIVIL EIGHTS

"We are all deeply concerned about exposing and rooting out disloyal elements
who may be in our midst. AVe are also concerned about victory for the forces
of freedom in the cold war. In order to effectuate both these aims, it is neither
necessary nor wise to impair our constitutional freedoms which protect the
innocent individual.

It is essential that we hold the balance between the investigatory powers of
the Congress which in the national interest we must protect, and the capability
of destroying the reputations and the means of livelihood of innocent people.

It is interesting at this point to quote the words of J. Edgar Hoover, the great
director of the FBI, who said as recently as March 27, 19.50 :

"I would not want to be a party to any action which would smear innocent
individuals for the rest of their lives. We cannot disregard the fundamental
principles of common decency and the application of basic American rights of
fair play.

I recognized this situation a long time ago, and saw how it was of great
concern to all fair-minded Americans and could particularly concern large
minorities like Catholics, Jews, and Negroes. For this reason I introduced
last year House Joint Resolution 20. It calls for a joint Senate-House investi-

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3057

gating committee aud incorporates the rules of procedure recommended by the
bar association of tlie city of New Yorl<.

Recently the Senator from Massachusetts, Hon. Henry Cabot Lodge, has rec-
ommended almost the same remedy. The very successful Canadian spy investi-
gation by a royal commission a few years ago following this procedure
certainly bears this out. I have had to withhold my support from the appro-
priation for the existing House committee due to the foregoing circumstances.
I believe that with the increased emphasis on reform of procedure, the necessity
for withholding such support on my part may soon be ended.

It is absolutely essential that all the facts be developed for the American
people in the current investigation on disloyalty in the State Department and
elsewhere. The inquiry should be pursued to the end under fair procedures,
so that a final result may be arrived at.

The danger is pointed out in a lead editorial of the Catholic Review, official
organ of the Archdiocese of Baltimore and Washington, of Friday, April 14,
which says :

"The loyalty investigation bids fair to end in a lot of charges and countei--
charges which will leave the American public just as much in the dark as when
the inquiry opened."

Antilynching and anti-poll-tax legislation have been relatively overlooked by
the Congress in view of the FEPC fight. However, we cannot rest until all of
our citizens without exception and without segregation enjoy their full rights
and freedoms as Americans of the same class.

FOOD PRICES

The work which I started last year of opposition to the inflexible 90-percent
parity farm price program, which is helping to keep food prices up when I was
1 of only 25 to vote against it, is beginning to show progress. These are signs
of the times. The shocking experience of the potato price support program
resulting in an expenditure estimated at over $350 million to date, and the
piling up and wasting of 50 million bushels of potatoes, has sunk into the
consciousness of most Americans. The investment in the farm price-support
program on the part of the Federal Government aggregates over $4 billion, and
the cost is running at about $1 billion a year.

High Government supports for farm prices bear unfairly on the living costs
of city consumers ; they are also unwise for the farmer who does not want a
reaction to set in which may swing the pendulum too far the other wa.v.

It is very much in the interest of city dwellers that agriculture should be
prosperous and Government should help with that, but not that farmers should
be a favored class.

FOREIGN POLICY

The issue of peace or war continues to dominate the minds and hearts of
men and women in our own as well as in every other country. We are de-
termined to win the struggle against the totalitarian ideology of communism
whose aim is to enslave all men. As a member of the Committee on Foreign Affairs
of the House of Representatives, our district, through me, has had an excel-
lent opportunity to participate in this cold war struggle in an effective way.
I spent some time in November and December last in Western Germany, Berlin,
Italy, Israel, France, and Great Britain with a mission from this committee
working on these problems.

INTERNATIONAL ECONOMIC STABILITY

Americans recognize by now that we cannot be prosperous or secure in a
bankrupt world. For peoples who have no hope will flock to communism out
of sheer despair. We may then flnd that we are isolated rather than isolationist,
and face a hostile world with the choice either of giving in, or destroying our-
selves in a war or in unbelievably large military expenditures. Hence, the billions
we invest in international economic stability are primarily invested in the interest
of our own securit.v and well-being.

We are continuing the 4-year European recovery program — Marshall plan —
this year into its third year with an expenditure which is likely to be about
$2,850,000,000.

It is by now clear that even after 1952, when the European recovery program
is due to end. Western Europe will still face a serious dollar shortage with which
to feed and clothe itself even austerely, and get raw materials for its factories.

3058 SCOPE OF SOVIET ACTIVITY IX THE UNITED STATES

To deal with this situation the United States should join the International
Trade Organization— ITO — which will facilitate trade for all the free countries,
including ourselves ; and undertake a vigorous development of the point 4 program
to make available American technical skill to develop underdeveloped countries,
concentrated in the first instance on agriculture, health, and education.

I fought hard for this point 4 program when it passed the House after a
very difiicult battle. It is one of the best answers we have to communism.

THE FAE EAST

Our policy in this area has been bankrupt of vigor and original ideas. The
forces of freedom on the whole have suffered losses in this area, the gravest of
vrhich is the loss of the mainland of China to the Communists. In the absence of
a policy by the administration the Congress has itself stated a policy, which I
have had a part in drafting. This policy calls on the peoples who remain free
in Asia, southeast Asia and the western Pacific, and this includes as well such
areas of China as are still free, Japan, South Korea, and the Philippines, to
organize themselves in a new program of self-help and mutual cooperation and
assures them of our aid if they do. The peoples of the great subcontinent of
India are very important in this great effort.

I also fought hard here for assistance to South Korea, one of the sturdy out-
posts of freedom in Asia.

There need to be no haste about recognizing Communist China, such as was
shown by other nations. It is much too early to ji'.dge whether it is anything
but a tool of the Soviet Union — another satellite. Our reverses in China have
taught us how much the Far East really means to our own security, to the fight
against communism, and to world peace.

GEEEK CHILDEEN

The whole world was outraged by news of the abduction of 28,000 children
of Greece by the Communist guerrillas for training and indoctrination in coun-
tries behind the Iron Curtain. In cooperation with the Honorable Frances P.
Bolton, of Ohio, I was able to get favorable action on a resolution which I
introduced and which unanimously passed the House of Representatives con-
demning the brutality of this abduction, and demanding the restoration of these
children to their homes.

NEAB EAST AEMS EACE

A new problem with respect to the establishment of peace and security in
the Near East following the Arab-Israeli conflict came to my attention directly
as a result of my visit to Israel in December last. The development of an arms
race in the Near East brought about by continued and large scale shipments by
Great Britain of jet fighter aircraft, tanks, and gunboats, and other arms capable
of use for aggression against Israel, to Egypt, Iraq, and Jordan, and perhaps
through them to other Near Bast states.

When I returned to the United States I vigorously protested this British policy
to the Secretary of State. His answer to me impliedly admitting the arms ship-
ments started in train a current of protest from Members of Congress — includ-
ing the majority and minority leaders of the House of Representatives — labor
unions, including the AFL and CIO, and citizens' organizations of all kinds,
which is still going on unabated.

Our own national security which would be involved with any renewal of the
war in the Near East is also affected. This British policy jeopardizes, too, the
situation of Jerusalem, whei'e peace is so essential to the whole Western World
concerned as it is with the protection of the holy places.

ABMED SEEVICES

Our national security continues to require between ,$13 billion and $14 billion
annually for its protection. General Eisenhower has pointed out certain defects
in our military preparations and has especially emphasized antisubmarine de-
fense. Fortunately, the additional amounts required to tighten up these defi-
ciencies is not excessive. Though our Military Establishment is only one element
in our foreign policy, of which economic and cultural policy are the other parts,
yet our Military Establishment must be effective and adequate to our needs. It
must be dominated by modern concepts of security in the atomic age and also
follow the traditional American pattern of civilian control.

SCOPE OF SOVIET ACTIVITY EST THE UNITED STATES 3059

To emphasize the urgency of securing our own freedoms and our position in
the world by eliminating segregation on grounds of race or color in the Armed
Forces, I introduced House Resolution 328, seeking an investigation of such
practices of segregation which persist, and urged an amendment to eliminate
segregation.

IRELAND

In an effort to focus attention on the problems of Irish partition, I intro-
duced House Resolution 456, seeking a plebiscite under United Nations auspices
of all Ireland so that the will of its people to end partition could be manfested
:ind Ireland could join the Atlantic pact nations and be admitted to the United
Nations. In the course of the debate on the European recovery program and
the amendment on this subject offered by the Honorable John Fogarty, of Rhode
Island, I was able to bring about hearings before the committee of which I am
a member on the resolutions which would put the House of Representatives on
record as favoring the unification of all Ireland. I am working for favoiable
;acIion on such a resolution.

THE UNITED NATIONS AND INTEBNATIONAL PEACE

The last few months have seen the United States decision to manufacture
the H-bomb. The seriousness of this decision cannot be overemphasized.

The Soviet walk-out from the Security Council over the failure to seat Com-
munist China has greatly complicated the UN problems. We must remain
serene and yet determined in the face of this threat and go about the business
of the United Nations anyhow. The United Nations' Secretary General has
spoken of a 20-year peace plan. It may be 20 years and we must have the
courage and patience to see it through — it will still be infinitely better than
war. The ultimate goal which promises peace in this dangerous world is the
development of the United Nations itself into a federation with necessary
powers and with adequate forces to keep the peace, and as the first step adop-
tion of the United States plan for control and inspection of A-bomb materials
and manufacture.

GERMANY

I have long recognized this as the principal area in the struggle in the cold
war. It is now becoming clear that the Communists in the eastern zone of
Germany will use the ex-Nazis of the western zone which we and the French
and British occupy in order to try to make a united Germany a new Soviet
satellite.

I came away from studying the situation in western Germany in November
and December last, convinced that if we do not plan for a long-term occupation
of western Germany, if we do not, with determination, fight against the recur-
rence of ex-Nazis and ultra-nationalists in high places in government, business,
and society there, and if we do not reform the educational system and insist
on democratic procedures in all levels of government and society, we will be en-
couraging a new Germany as aggressive a menace to humanity as before and
this time in a league with the Soviet Union which may well be successful in
overpowering the civilized world. I have helped to organize the introduction
in the House of Representatives of the same resolution introduced in the Senate
to investigate the whole German situation and our occupation policy there.

I have vigorously opposed and will continue to oppose the remilitarization of
western Germany. The hope for Germany and the hope for peace in Europe
is a federation of western Europe, of which western Germany can be a part, and
in this way to make of all the other Europeans, guarantors of a new Germany's
peaceful intentions.

DISPLACED PEESONS

The new displaced-persons legislation now passed by the Senate and House,
a. measure for which I have been fighting since I first came to Congress in 1947,
liberalizes the definition of those eligible and eliminates many of the discrim-
inatory provisions found in the previous law. Provisions are made for the
admittance of 344,000 displaced persons in 3 years instead of the present
205,000 in 2 years ; among them 20,000 may be orphans admitted for purposes
of adoption — legislation which, with Senator Ives, of New York, I pioneered in
1947 — 4,000 may be anti-Communist refugees stranded in China — a provision
which I initiated together with Representative Emanuel Celler, of New York;
18,000 may be veterans who fought under the flag of the Polish Republic and

3060 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

cannot return to their Communist-dominated homeland ; 10,000 may be natives
of Greece made homeless by the military operations of first the Nazis and later
the Communist guerrillas; 5,000 may be from Trieste; and 5,000 may be eligible
displaced orphans.

CONCLUSION

From the above it can be seen that the world leadership which our power and
resources have forced on us has enormously increased our responsibilities.
The American people continue as always to want only peace, freedom, and the
practice of the golden rule for themselves and others. This continues to be our
greatest strength. Just as the minds and abilities of Americans are expanding
to meet our new challenges, so I believe too that we will find our political
institutions doing the same thing.

[Congressional Record, September 14, 1950]

Eighty-first Congress — Second Session — Final Report — Record and Forecast^
Speech of Hon. .Jacob K. Javits, of New York, in the House of
Representatives

I\Ir. Javits. Mr. Speaker, since my last report to the people of my district a
great change has come about in the affairs of our country and in the hopes for
peace in the world. This is due to the outbreak of armed aggression in Korea
on June 25, 1950, in a shooting invasion by the North Koreans, puppets of the
Soviet Union against South Korea, a republic organized under the protection
of the United Nations.

aggression in KOREA

The American people being immediately faced with a momentous decision
whether to stop Communist aggression or to consider South Korea as expend-
able, took, through the President, the fateful decision of determining to stop it
in Korea with the use of armed force. We were immediately fortified in our
decision by the declaration of the United Nations Security Council condemning
this aggression, invoking military sanctions and inviting all UN members to join
with their forces in defeating the aggressor. This was the first time an inter-
national organization had dared to take such steps, and it dared to take them
only because it had the pledge of all-out sup] tort by the United States.

I have consistently supported this decision by the President since. It repre-
sented a decisive action by the United Nation? and the United States to stop
exactly that kind of aggression which brought on World War II and which
was started by Japan in Manchuria in 1931 and Hitler in the Rhineland in 1934.
It was for this reason that I had consistently advocated and fought for aid to
Korea, including such support for the first Korean-aid bill in January 1950,
when the House of Representatives defeated it liy one vote. It was also for
this reason that I have worked for a decisive Far East policy to sustain the
morale of the free peoples of Asia and not to give the Communists of China, or
elsewhere, free rein among the vast populations there because of the admin-
istration's bankrupt policy. The State Department has been properly criticized
for its failures in the Far East and must answer for what has been done and
failed to be done there.

The American people have been deeply shocked by our apparent unpreparedness
to undertake military operations in Korea, though the United States has spent
,$49 billion for the Armed Forces since World War II ended in 194.". The
executive department must bear the major responsilnlity for this lack. Congress
supplied in substance the money requested ; Congress even went further and
on two separate occasions — which I supported — insisted on a TO-group Air
Force as against our existing 36 to 48 groups, and appropriated the money for
it, but the President impounded over .$735 million of these funds and would not
spend it. Our policy of building up the Armed Forces Reserve was permitted
to fall into disuse and other means for building up military manpower were not
employed. New aircraft and new weapons existed only on the drawing board
and not in being, though many in the Congress were ready and willing to sup-
port such improvements. I have opposed appropriation cuts related to defense
preparations ever since the beginning of this Slst Congress.

Much criticism, and properly, has been directed at Secretary of Defense John-
son for these failures. He is now about to be succeeded by General Marshall,
one of our most highly respected soldiers. We certainly have a right to feel

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3061

that lu' will do an effective job in this post, although his designation does raise
troublesome problems involving the continued civilian control of the military
which has been a basic principle in American government for many years.

INFLATION

According to the general index of basic commodities compiled by the Bureau
of Labor Statistics food prices have risen from an index number of 264 on June
23, 1950, to an index number of 321.3 by September 1, 1950 (1935 to 1939 equals
100). This jump of 57.3 points compares with a rise of only 16.4 points between
the beginning of February 1950 and June 23. Hoarding also started as soon
as the fears over the Korean operation spread around the country. Faced with
a vastly increased defense program the Government became concerne<l about the
diversion of steel, copper, and other metals for large-scale civilian use.

Accordingly in the consideration of the Defense Production Act of 1950 I sup-
ported stand-by control powers in the President with a residual control in the
Congress, which we had learned to be required in World War II, over scarce
materials, prices, hoarding, wages and profits, mobilization management, credit
and commodity speculation. However, control over all real-estate credit was re-
stricted by the bill only to new construction and control over commodity specu-
lation which I supported was stricken from the bill. I supported the effort to
get the principle of an excess-profits tax written into the law. I sought to bring
about a rollback on food prices to the level of April 15, 1950, but I was not suc-
ces.sful in this endeavor. Finally, I was successful in causing to be included in
the bill provision for new agencies like the War Production Board of World War
II, to handle mobilization. In this I was following out the proposals made by
Bernard L. Baruch.

WHAT IS IMPENDING

If the vast production of the United States is harnessed to the equally vast
responsibilities which we must carry during that time — and this involves an
extraordinary effort particularly on the part of the working men and women in
our mines, factories, oflSces, and communication and transportation systems,
and of management — then I believe that the men in the Kremlin will not at-
tempt all-out war. Should we fail in this effort they must very well attempt it.

Our Armed Forces must be materially increased, doubling the size of the pre-
Korean operation forces to upward of 3 million men and women. Our defense
budgets for the Armed Forces alone are likely to run in the area of $25 billion
to $30 billion per year. We must at the same time undertake a great program
of economic development and reconstruction among the world's free peoples.
The weakness of what we have been endeavoring to do to date has been our
failure to recognize that as opposed to Communist promises, particularly in Asia
of land reform and of more even distribution of income in return for a surrender
of the people to slavery, we must actually deliver goods and well-being and a just
economic order with freedom. This effort must also include continued assist-
ance to Western Europe — which still remains our strongest ally — to follow the
Marshall plan which ends in 19.52. I estimate that our total bill for foreign
aid may add up to over $5 billion per year. In this way we should at least be
able to pry loose enough of the satellites of the U. S. S. R. to end her powerful
threat to peace and freedom. It may take 10 or more years, but this is still
infinitely better than World War III in our time.

In our endeavor to find allies, however, we must not lose more than we gain.
This is the situation with regard to the loan to Spain. There is a right way to
deal with Spain and that is by the western European nations themselves or-
ganized in the Organization for European Economic Cooperation, once they are
satisfied that Spain should be received back into the community of nations.

With annual budgets in the magnitude of 50 to 60 billion dollars the progres-
sive development of economic controls may well prove necessary to avoid a dis-
astrous inflation. Our economy is producing at the current rate of $275,000,000,-
000 a year. Provided that our people exercise an intelligent self-discipline which
is already being manifested in the cessation of hoarding, panic buying and bid-
ding for scarce commodities, all-out controls may be avoided. I am, however,
not in favor of letting high prices and inflation sweep away standards of living
for middle-income families or the savings and incomes of Government employees,
pensioners, retired people, and beneficiaries of the social security system, but will
urge tlie prompt and effective imposition of the necessary controls to prevent this
from taking place.

3062 SCOPE OF SOVIET ACTIVITY IX THE UNITED STATES

We must have a stepped-up campaign to reflect to the peoples of the world'
the truth about our actions and our motives, by radio, television, through the
printed vpord, and by worker, student, teacher, and other interchanges.

Finally, in this day of the atomic and the H-bomb we must be prepared inter-
nally against Pearl Harbors right on the mainland of the United States. Accord-
ingly, I shall support full civilian-defense legislation so that an adequately
trained civilian defense force and the necessary facilities — underground shelters,
radar warnings, emergency evacuation centers, and fire, disaster, and hospital
equipment and crews — may be available to us as soon as possible to the full limit
of our capabilities.

THE PROSPECTS FOR PEACE

With these precautions taken, I believe that we have a good chance to avoid
another world war and to put the whole world on a new plateau of peace and
prosperity. The United Nations, due to the all-out support which we have given
it in Korea, has an excellent chance to develop into a world federation with
powers and forces adequate to preserve the peace of the world. The Soviet
Union may sponsor aggression in other areas, in the Near East, in Iran, against
Greece, against Western Germany, or in Asia, against Indochina, Malaya, Burma,
or India, or even in the Philippines. The great increase in our own mobilized
forces and the increase in the power of our allies should make this problem
more manageable. Time, in this respect, is definitely on our side. Substantial
United Nations striking forces, strategically placed by regions, should be able to
cope with these menaces of local Communist aggressions.

The issue has necessarily been raised of participation by other United Nations
forces in this struggle against communism — today in Korea, tomorrow perhaps
elsewhere. Many nations are already contributing fighting forces, notably
Great Britain, Australia, and Canada, Turkey, and the Philippines. But these
forces are not nearly great enough and we must constantly work to see them
increased and to see a more equal sharing of the responsibility for maintaining
the peace.

I believe that in this respect we have two great hopes ; one upon which we are
working actively and which I have continuously supported^the reestablish-
ment of the forces of Western Europe through the mutual defense assistance
program and the Atlantic Pact. The other is the development of a Pacific pace
which will bind together the powers of all the free peoples of the Pacific — India.
Pakistan, Burma, Thailand, Malaya, Indochina, Indonesia, the Philippines,
Australia, and New Zealand — for their mutual defense with our help, and let
them help decide about China and Japan.

Talk may grow even louder of a preventive war against the U. S. S. R. as the
economic impact on all of the big mobilization programs and as impatience
with new Soviet aggressions and sabotage continue. I am unalterably opposed
to such a preventive war. It could well mean the destruction of civilization
or at the least twenty million or more casualties. It would create a postwar
problem assuming we won — as I am sure we would — of refugees, and of physical
destruction, which would keep us in poverty for decades, and it is morally in-
defensible. In addition, such talk scares our European allies so badly — as they
see a new possible occupation by the Russians — as to seriously impair their
will to resist or to prepare against a new Communist drive.

GEEMANY AND JAPAN

A new agitation has arisen to rearm Germany as a means for countering a
Soviet aggression like that in Korea through its eastern German regime with its
250,000 or more state police as the basis for an aggressor army. This is a
real danger but it must not be used as an excuse for creating an even greater
danger. Based upon my careful investigation of the situation in Western Ger-
many as a member of a subcommittee of the Foreign Affairs Committee in
November of 1949, I have opposed a new national army for AVesterii Germany —
but that does not mean that it need be undefended. In the first instance the
forces of Great Britain, France, and the United States there must be strength-
ened as is now planned, as they are the only guaranty of the west German border
for some time to come.

Secondly, we are serving notice on the Russians that any move in Germany
will be considered a move against the United States, France, and Britain. Fi-
nally, we must work very hard for a European federation in which Western
Germany and west German military manpower can be incorporated. This policy

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3063

is the middle ground between encouraging a new remilitarized Germany which
could again be an aggressive menace to the world and if it made a new pact with
the Soviet Union repeating what happened in 1939, might even overwhelm the
world — and a Germany which is an invitation to a new Russian aggression,
Korean style.

Efforts are being made to develop a peace treaty with Japan. The prospect
of a Japan contributing fully to the economic and social development of the Far
East is an attractive one. But great care must be taken that the basis for
a new militarism or imperialism is not laid in this way. I believe this can best
be avoided by making the free peoples of the Pacific the main arbiters of the
destiny of Japan, coupling their views with our own security considerations in
developing final terms for Japan's future.

DISPLACED PERSONS

Together with other colleagues, I succeeded in making arrangements by which
106 refugees from the Hitler terror who escaped to Shanghai were finally evacu-
ated by the International Refugee Organization and passed through the United
States by sealed train would be admitted to the American zone in Germany
for processing only and for prompt return to the United States of those who
were eligible. Similar arrangements are also being made for some 600 DP's,
many parents and relatives of former DP's now resident in the United States,
still marooned in Shanghai, who are also being evacuated by the IRO, The DP
program under the new law passed this year to admit 344,000 is also working out
better. Especially gratifying are the provisions for admitting orphans and
children.

ISBAEL

Since my last report a three-power declaration was issued on May 25, 1950,
proposing to end the Near East arms race and to provide that arms shipped into
this area should not be used for aggression. The success of this move is still
uncertain. It is my firm conviction that the protest against British arms shi]>
ments to the Near East, which I issued upon my return from Israel in December
1949, and the current of protest in the Congress from the great labor federations —
AFL and CIO — and from citizens' organizations of all kinds which this set in
train were the major impelling reasons for the three-power pact.

Israel's problem of resettling vast numbers of harassed Jews from the Near
East and from countries within the Soviet orbit is estimated to require provision
for the settlement of some 600,000 to 800,000 in the next 3 to 4 years. It is
my expectation that the needed resources will be forthcoming, and in the same
spirit in which Israel's progress has so far been aided so materially in and by the
United States.

IRELAND

Great interest has been focused upon the effort to end Irish partition by the
hearing before the House Foreign Affairs Committee for which I arranged,
and which was held on April 28, 1950, and by the subsequent consideration by
the Committee of the Fogarty Resolution expressing the sense of the Congress
that all Ireland should be unified. This is a continuing effort until success is
achieved, in which thousands of citizens directly and through their organizations
are participating. The legitimate aspirations of the Irish people for unification
are an essential phase in the whole world struggle for stability and peace.

FOOD PRICES

Increase in this item of the normal family budget accounting for as much as
40 percent of it, is almost 3 times prewar costs. I have continued my fight
on the inflexible 90 percent of parity farm price program of the Federal Govern-
ment. Recently the Congress enacted a measure to give away vast surpluses of
cheese, dried milk, and dried eggs to prevent their spoilage ; and to pay the cost
of transportation in order to get them out of Government stocks. At a time
when all nondefense expenditures must be scrutinized this is intolerable waste.
The cost of this program is running between one billion and two billion dollars
a year. The Government has invested almost $5 billion in surplus commodities
on hand.

City dwellers have a direct interest to see that agriculture should be prosperous
and Government must help. We must never forget that the depression of 1932
was materially induced by collapsing farm prices. But the situation of domestic

3064 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

and world demand is very different today, and though the Government should
help, the interests of city dwellers and farmers should be balanced and there
should not be any preferred class. I introduced a resolution calling for a special
investigating committee to check on food-price increases while the Congress is
in recess this fall.

We must not forget in this whole question, about the already heavy charges
of processors and middlemen which are figured in percentages and go up with
the increased costs of farm products at the farm, in this way adding even more
to high food costs.

RENT CONTROL

Just before the change was made from Federal to State rent control on May 1
the Federal Housing Expediter issued orders retroactively increasing the rents
of 4,(X»0 tenants in New York City by over $1 million a year. Such increases
were directly contrary to the provisions of the State law which provided that
rents should be controlled at the March 1, 19-50, or March 1, 1949, level, which-
ever was lower. Large liabilities have been imposed on many tenants due to
a decision of the Court of Appeals of New York holding these increases to be
collectible for the period up to May 1, 1950, despite the State law. I immedi-
ately protested these eleventh-hour rent increases and subsequently I introduced
legislation to bring about their revocation.

Since my last report the Congress has renewed the Federal rent-control law
for a period ending December 31 of this year but subject to a 6-month extension
up to June 30, 19.51, for any municipality which so elects. I vigorously sup-
ported this extension, not because we need it in New York, our State law now
in effect is a better rent-control statute than the Federal law, but because it is
in the best interest of the whole country in fighting inflation. In view of the
emergency brought on by the Korean crisis I have supported and will continue
to support the reimposition of more stringent Federal rent control than is now
in the Federal law.

The facilities of my congressional rent clinics have been expanded, additional
staff has been added, and operations are being continued throughout the district
under the chairmanship of Hyman Sobell, Esq. These clinics are now engaged
in helping tenants who have problems under the New Y'ork State rent-control
law.

CIVIL RIGHTS

Congress has acted on measures to expose and eliminate subversives and other
disloyal elements. I have been faithful to the principle that there should be
punishment for any acts or conspiracies of subversion no matter how subtle or
indirect, and inexorable and public exposure of Communists and other such
elements, but that punishment should not be administered just for thoughts. In
this interest, I supported the measure giving Government officials the absolute
right to fire security risks. I voted to punish for contempt those who refused
to answer to congressional committees whether or not they were Communists
and also to punish for contempt extreme rightists who refused to tell the House
Lobbying Committee about the sources of their support.

I felt it necessary, however, in the interests of our people to oppose a bill
which would have given the Attorney General alone the power to incarcerate
any person subject to a deportation order for as much as his natural life with-
out recourse to a writ of habeas corpus or any other way of getting out. I also
opposed a bill brought in by the Un-American Activities Committee which os-
tensibly was for the purpose of registering Communists and fellow travelers
but really contained a precedent most dangerous to all minorities by imposing
grave disabilities on people solely because of their ideas rather than their acts.
There is grave doubt as to the constitutionality of any such law. If such legisla-
tion is to stand unchallenged then a majority in the Congress can interdict the
communicants of any faith or church which is international, and any interna-
tional fraternal order, business, or trade-union organization just by writing the
proposition into a bill.

Our laws against subversion and espionage are already strong, but I am fully
in favor of strengthening them even further. Our laws against those advocating
or seeking to overthrow the G(jvernment by force are already effective as shown
by the conviction of the 11 Communists in New York. I favor also, as proposed
in the Senate, incarceration of Communist operatives in the event of war or
national emergencies under customary judicial procedures.

As my district contains a composite of minorities, these considerations must
be of primary importance with me as its representative.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3065

I continued my fight against segregation in the Armed Forces by frequent
protests and by offering the same amendment to the renewal of the draft law which
I had oflered to the original draft law. Real progress is being made in ending
segregation in the Navy and Air Force, but we still have a struggle in the Army.
The valor of the Negro regiment in Korea — Twenty-fourth — demands no less a
measure of justice than an end to all Negro regiments and the establishment
nnly of American regiments — regardless of color.

VETERANS

Under Public Law 610, whch I helped to sponsor, the VA regulations which
TuiUitied a good deal of what Congress intended for GI's in educational benefits
have been canceled.

Veterans' services require constant vigilance. For example, an effort to dis-
mantle and disperse a hospital for paraplegics at Van Nuys, Calif., which would
have displaced a substantial number of paraplegics who had established them-
selves in that community and built homes was successfully resisted. I joined in
and was part of the protest to the President which brought this result about.

POST OFFICE AND CIVIL SERVICE

The House of Representatives has taken action to end the curtailment of mail
service — including two-a-day deliveries in residential areas — effective in New
York June 1 under an order of the Postmaster General of April 18. Concurring
action is now up to the Senate.

I supix)rted this anti-mail-service-curtailment legislation and was one of the
sponsors of it, as I believe that this is a minor economy compared to the very
great inconvenience caused to our citizens. I shall continue to fight against
this curtailment of mail services until it is ended.

The House of Representatives passed over the President's veto, H. R. 87 afford-
ing to postal employees a starting salary grade commensurate with their status
after giving them credit for war service, but the Senate sustained this veto. I
will continue to fight for this principle to be applied to postal employees and also
ro other Federal employees.

Further civil-service i^roblems involve the integrity of the civil service at a time
of national emergency like this when it can be disintegrated in the making of
temporary against permanent promotions ; and also the establishment of an
absolute right to retirement after 30 years' service, as it is my firm conviction
that the service should be made an attractive and dependable outlet for the
best efforts of those who are employed in it.

SOCIAL SECURITY

The Social Security Act amendments of 1950, which I worked for, extend
coverage to about 9,700,000 additional people — 7,650,000 on a compulsory basis
and 2,050,000 on a voluntary basis. This expansion includes the self-employed
other than certain professional people (doctors, lawyers, dentists, ministers,
etc.), under specific conditions certain household and farmworkers and on a
voluntary basis employees of nonprofit organizations and Federal, State, and
municipal employees where they do not have a retirement system of their own.
If a person is not now covered and believes he might now be included under
the new law, I would suggest a call at the Social Security field office in our dis-
trict at 334 Audubon Avenue (Wadsworth .3-6720) for full information as how
to proceed, and also for the necessary forms to be filed.

The benefits generally are increased from 50 to 100 percent for those receiving
social security now. The minimum individual benefits are generally increased
from $10 to .$20 per month, and the maximum from .$45 to $68.50 per month.
For those who will receive social security in the future, the minimum is to be
genei'ally $25 per month and the maximum .$80 per month ; for families, $150
per month. These benefits went into effect September 1, 1950.

In addition the allowable monthly earnings by one eligible to receive social-
i-ecurity payments are increased from the present $15 to $.50.

Future eligibility requirements are greatly liberalized and older workers — ■
now over 60 — are given very liberal provisions to enable them to qualify for
benefits — as little as six quarters of covered employment.

72723— 57— pt. 43 T,

3066 SCOPE OF SOVIET ACTIVITY IN THE tJNITED STATES

BUDGET AND TAXES

The efforts, in which I joined, to bring about relief from wartime excise taxes
on items entering into the cost of living of the middle-income family and which
are not luxuries at all, have by the Korean crisis been temporarily made un-
fruitful. However, the excise-tax inequalities and injustices still remain and
we must not let the situation rest without continuing efforts to undo what
is wrong.

Great care must be exercised in nondefense expenditures. The added costs
of our present military operations and foreign aid and defense expenditures
must be met insofar as possible on a pay-as-we-go basis, as this is a time of the
greatest national income our country has ever known.

We should leave to our children the smallest possible legacy of debt. There
should be an excess-profits tax and adequate corporation taxes. The House of
Representatives has demanded such legislation and I support it fully. Profits
are important to our economy but inflationary profits at a time like this are a
disservice to the community and should be paid out in taxes. Personal income-
tax increases can only be considered if excess-profits taxes plus adequate
corporation taxes are levied.

LABOK AND MANAGEMENT

The coal strike, the recent threat of railroad strikes, and discussion of a
no-strike pledge during the present emergency all emphasize the critical im-
portance of sound labor relations at this time. Statesinanlike trade-unionism
and trade-union leadership, which must have the utmost management coopera-
tion, now should be afforded the opportunity to show their ability to attain that
increased production without which the cause of freedom would be in grave
danger indeed.

Labor relations are generally better off without wage controls than with them.
However, such controls will inevitably come if the principles of justice and dis-
cipline are not followed, for in the final analysis it is the security of the Nation
which is paramount to all other considerations.

PUERTO RICO

I supported and worked for a bill to give the people of Puerto Rico the power
to draw up their own constitution with full opportunity for complete self-govern-
ment. In this respect I got it clear in the Congress, and laid before the President
the intention of the Congress, that the people of Puerto Rico shall have an
absolute right to decide under this bill on what they want to be their government.
The economic and social problems of Puerto Rico, though serious, are fully
susceptible of solution within the context of the understanding that Puerto Rico
is a part of our Nation and that Puerto Ricans are citizens of the United States.

OTHER ESSENTIAL ISSUES

Alarmed by the diminution in voting participation I have offered a bill to
investigate why Americans do not vote. This bill has aroused great public dis-
cussion and also has developed a great many constructive movements in cities
and States to deal with the situation.

I supported suffrage for the District of Columbia, civil government for Guam,
and statehood for Alaska and Hawaii, and shall continue to support the admis-
sion of these two Territories to the Union. This is certainly important at this
time when we are giving leadership to Asiatic and African people who have had
experience with colonialism.

In connection with my service on the House Foreign Affairs Committee an
issue arose whether those who had escaped from the Hitler terror to the United
States and were permanent residents but not yet citizens should be entitled
equally with American citizens to the protection of the United States Govern-
ment in claims against the assets of prewar enemy nationals. After a struggle
the House passed a bill recognizing the justice of this principle.

A proposed constitutional amendment to change the method of electing our
Presidents failed before the House, known as the Lodge-Gossett Amendment. It
proposed to divide the electoral vote in each State in proportion to the popular
vote cast. I opposed it as I felt it would place too much power in the hands of
the solid South where there is practically a one-party system. Progress is being
made in the South to free Negroes from their voting disabilities whether prac-

SCOPE OF SOVIET ACTIVITY EN THE UNITED STATES 3067

tical or lesal, aud I believe my district wants this effort to go forward rather thaa
to be retarded.

CONCLUSION

Our Nation finds itself in the period of a world crisis for peace. Our power
and resources are greater than ever. I am confident that we can win the peace
and put the whole free world on a higher plateau of economic, spiritual, social,
and political well-being. This will take, however, an exertion of effort, an
increased production and an output of our resources greater than any we have
ever undertaken in peace or war and I estimate that this must continue, if we
are to h;ive peace, for 10 years or more. I believe the end sought to be worth it.
The American people are capable, I am confident, of the will, the patriotism, and
the self-denial which the road to peace requires.

[Congressional Record, May 9, 1951]

Eighty-second Congress — First Session — First Report — Record and Fore-
cast—Speech OF Hon. Jacob K, Javits, of New York, in the House of
Representatives

Mr. Javits. Mr. Speaker, since my last report to the people of my district
we have begun to see better the extent of the emergency which we are facing in
our country, the nature of the Communist threat to our national security and
to the peace and security of the world, and the direction in which we must go to
attain a climate of peace.

FOREIGN POLICT

This is the major field in which the American people are being faced with
difficult decisions. Our country made great strides through the bipartisan
foreign policy in winning World War II and in the establishment of the United
Nations, the European Recovery Program, the Atlantic Pact, the Mutual Defense
Assistance Program, and in the defense of Greece and Turkey against com-
munism. It is unfortunate that the circumstances of recalling General Mac-
Arthur, considered by the country an outstandingly successful commander and
administrator of World War II, should have created an atmosphere so conducive
to partisan strife. On one point we must be clear. The President has the
power and the responsibility to act as Commander in Chief — that is the essence
of civilian control over the military — and to conduct foreign affairs. The Cabinet
is the President's; his responsibility is to the Congress and the people. It is
my deep hope, and it shall be my constant effort to see, that the divisions
which have been created by the recall of General MacArthur shall be bridged
and that we shall be enabled again to go forward in broad areas of bipartisan
cooperation on oxw foreign policy.

General MacArthur has properly been afforded every opportunity to tell his fuU
story to the people and the Congress. The airing of our whole Far East policy
will turn out to be a distinct gain for the American people, as many of our people
had seemed to be discouraged by the continuance of the conflict against the
Communists in Korea because they did not recognize the objectives involved.

fab east

I am supporting fully our fight against aggression in Korea as a test to show
that aggressors will be resisted by force and therefore vital to the maintenance
of peace and freedom in the world. I have advocated and continue to advocate
a Pacific Pact for self-help and mutual cooperation in the Far East, a Far East
recovery program for economic reconstruction and development which I consider
to be of equal importance, and the conclusion of a treaty of peace with Japan.

It has appeared to me impractical to consider undertaking an invasion — as dis-
tinguished from guerrilla activities — of China's mainland with our furnishing
the air and sea power to back up the Chinese National troops considering our
present military means and at the very time when we are putting on a great
defense mobilization effort. On the other hand, I am firmly against appeasement
of Communist China by admitting it to the United Nations or by giving it control
of Formosa. Formosa must be maintained as a bastion.

I joined in sponsoring a resolution — House Resolution 77 — which passed the
House of Representatives on January 19 to get the United Nations to declare

3068 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

Communist China the aggressor in Korea, and this resolution subsequently
passed the United Nations.

The weaknesses in our Far East policy have been in the economic and ideo-
logical field. It is the conditions of life of the 600,000,000 people in south and
southeast Asia, outside of Communist China, which will determine whether we
can keep them on the side of free institutions and of free peoples.

GEAIN FOB INDIA

It is because I believe so much depends on improving standards of living in
Asia that I have been one of the most active in the fight to provide 2,000,000 tons
of food grains to relieve the imminent threat of famine in India. I initiated
this effort on December 26, 1950, and subsequently joined in putting together
the India aid bill itself.

EUROPE

The defense of Free Europe continues to be of paramount immediate impor-
tance to our national security. Free Europe's industrial resources — 55,000,000
tons of steel production per year, for example — and the skill of her 275,000,000
people is so great that it remains the Communist's No. 1 target and of the great-
est value to them in their effort to subject us and the rest of the world to com-
munism. The North Atlantic Treaty Organization — Atlantic Pact — whose forces
are commanded by General Eisenhower, is the most formidable force the Com-
munists have to face. The Atlantic Pact and the Mutual Defense Assistance
Program have given Western Europe the will to defeat communism. I would
like to see Greece and Turkey included and the program extended to the eastern
Mediterranean to include Israel and other states willing to join ; also by the
acceptance of and on terms assuring their peoples of freedom — to be specified
by the united action of all the Atlantic Pact countries — to include forces of Spain
and, if possible, Yugoslavia, too, in an all-European integrated defense estab-
lishment.

We are in effect now and due to the state of our military preparations engaged
in a holding action against aggression in Asia while we prepare to discourage
it completely in Europe. Our own and European defense preparations should
be such that within the next year or two we should no longer be faced with this
dilemma.

GERMANY

Western Germany has continued as a special problem. Progress on integra-
tion of the European economy have been made with Western Germany, particu-
larly in the approval of the Schuman plan for pooling the coal and steel resources
of Western Europe; also on integrated European defense. P.ut the infiltration
of former Nazis into outstanding positions in government, business, and society
continues; a trend shown to be so dangerous in recent German (Lower Saxony)
and Austrian (presidential) elections. In addition, revelations of a Senate
committee just released show shocking violations of law and policy in the con-
tinuing and heavy deliveries of strategic and warmaking materials behind the
iron curtain from Western Germany. For these reasons I reintroduced my
resolution (H. Res. 115) calling for an investigation into the United States
occupation policies in Germany.

ECONOMIC RECONSTRUCTION AND DEVELOPMENT

Low standards of living and economic insecurity throughout the world are
seedbeds for communism. We must in parallel to our defense preparations under-
take to do all we can to better the standards of living of the free peoples, partic-
ularly in the underdeveloped areas of Asia, the Middle East, Africa, and the
Americas. In most of these areas the standard of living is so low that the
average per capita income of the individual is less than .$100 per year as com-
pared with about $1,700 per capita per annum for the United States. We have
just been given a blueprint of what can be done in economic reconstruction by
the report of the President's Advisory Board on International Development
headed by Nelson Rockefeller. I have supported and will continue to support
these recommendations as an essential arm of our fight against communism. It
is for this reason, too, that I supported the Reciprocal Trade Agreements Act
(H. R. 1612), to extend this law for 3 years, and thereby to facilitate greater
world trade.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3069

THE PROSPECTS FOB PEACE

Those who really want peace and are not taken in by Communist "peace pe-
titions" intended to sap our will to resist communism know that we may have to
fight more than one small war as we are now fighting in Korea to teach the Com-
munist aggressors that aggression does not pay, in order to get peace. They
know that peace calls also for condemning aggression and the emgargo of goods
an aggressor could use for war — measures the United Nations is taking. We
must strive in every way to get greater participation by the other free peoples
in these efforts to punish aggressors. The fighting forces contributed notably by
Great Britain, Australia, New Zealand, Canada, Turkey, the Philippines, Siani,
Puerto Rico, and others to the Korean struggle are yet not nearly great enough.
We must see that the military capabilities for cooperation in the defense of
freedom by the other free peoples are greatly increased, and that their coopera-
tion in other measures to resist and punish the Communist aggressors is assured.

We must resist all blandishments for a preventive war either against China or
the U. S. S. R. Such action would put us in a bad moral position with the
hundreds of millions of peoples in the world whom we wish to win over to our
side, and would lead inevitably to world war III and the atomic, near destruc-
tion of the civilized world which such a war would bring on.

There is real hope for peace through strength, through broadcasting the truth
about our policies, and through effective economic reconstruction and develop-
ment. It lies in making the free peoples so successful and so strong that the
satellites, including Communist China, will begin to be attracted away from the
Soviet Union, will begin to follow the example of Yugoslavia and thus break the
Communist threat. At that point, negotiation regarding the atom bomb, reduc-
tion of armaments, world trade, world communications, and a United Nations em-
powered to keep the peace under law without arbitrary vetoes are likely to prove
feasible and fruitful.

DEFENSE JIOBILIZATION

From the very first I contended that unified control required a Defense Mobil-
izer with powers analogous to the War Production Board in World War II. Uni-
fication has been achieved under Charles E. Wilson with price, production, and
materials allocation controls under administrators subject to his general direc-
tion.

Labor should have full representation in every phase of the mobilization effort.
Without vigorous and effective workers of high morale well organized in success-
ful trade unions led by labor statesmen, it would be difficult indeed to make a
success of the defense mobilization effort or to maintain that labor-management
cooperation and that industrial peace so essential to success.

INFLATION CONTROL

Failure to curb inflation could destroy our national morale and our national-
defense capability. Inflationary forces were running wild until January, when
the price-freeze order was first put into effect by the Office of Price Stabilization.
Price rises have been somewhat tempered since, but prices are still so high as
to imperil the standard of living of every moderate-income family.

Immediately after Congress reconvened, on January 3, I introduced House
Concurrent Resolution 4, demanding that the President impose price controls.
Subsequently and on January 27 the price freeze went into effect, but the major
deficiency in this price freeze which is undermining the whole infiation-control
program is its inability to deal adequately with food prices. Food costs con-
stitute 40 percent of the normal family's budget, yet food prices have risen almost
5 percent since December 15, 1950, while farm prices average 25 percent higher
than they were in June 1950, when the action in Korea started. The reason for
this is the provision in the Defense Production Act, a provision which I strongly
opposed, preventing food prices from being controlled before they reach 100
percent of parity. As a result, a whole list of important foods like bread, grains,
corn, citrus fruits, and butter are free to go up, while a list of foods already
high in price like beef, wool, and cotton are controlled, but at the high prices.

Announcement has recently been made of rollbacks up to 10 percent by fall
on beef. Already we are hearing threats of farmers' strikes and black markets,
though beef would still be selling one-third over the parity the farmer has always
contended for. The Defense Production Act provision on agricultural prices
must be amended.

3070 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

There has been much talk of wage stabilization and holding wages to a
10-percent rise over January 1950, but obviously this is asking more than any
worker or employee can agree to. With prices, and especially food prices, con-
tinuing to rise and with an apparent lack of power to control them, wage stabili-
zation properly will hinge vipon effective price stabilization.

Price controls are only a means for giving our economic system the opportu-
nity by increased production, credit control, adequate taxation, and economy in
Government expenditures to exercise basic restraint over inflation. It is for
this reason that I took a deep interest in the struggle on credit control between
the Federal Reserve Board and the Treasury. The policy decision made as a
result has brought about slightly higher interest rates for Government bonds,
but has tended to restrict credit and to curb inflation.

The privilege to retain United States savings E-bonds — acquired by many
citizens under payroll-savings plans — beyond their 10-year due dates, generally
from 1951 to 1955, for another 10 years at rates of interest equivalent to those
previously earned, was recently enacted into law. This type of security is a
patriotic investment and a fine provision for a rainy day.

RENT CONTROL

Despite the fact that we have a rent control law in New York State I have
fought for and supported tighter Federal rent controls. This is essential to
curb inflation in the country generally which would certainly be very harmful
to the people of New York. New York Sfate rent control is not as good as the
people in our district would like it, particularly in the possibility it allows to
landlords of rent increases based on a fixed rate of return — 4 percent plus 2 per-
cent depreciation — on the assessed value of their property. But I am convinced
that New York State rent control still represents greater protection than the
people of New York could get under the present or any Federal rent-control law
likely to be enacted this year.

It is easier for landlords to get more and greater rent increases under the
Federal rent control law than under the New York law yet there will be another
hard fight to get even this inadequate Federal rent-control law extended beyond
June 30. The amendment which I sponsored requiring as a condition of any
rent increases that landlords give all services to tenants they gave as of the
rent freeze date continues in the Federal and New York State rent control
laws — and is responsible for blocking many improper rent increases. My con-
gressional rent clinics continue to function every week throughout our district
under the chairmanship of Hyman W. Sobell, Esq., and staffed by volunteer
lawyers rendering an outstanding public service in rent problems without charge.

MILITARY SERVICE

Extensions of the draft have been voted by both the House and Senate and the
final terms of the law are becoming fairly clear. The draft will probably be
extended to July 1, 1955, and the age limit be reduced to 18^4 years, but no
draftee may be sent for overseas duty until he attains 19 years of age. The
term of service will be 24 months. The law will contemplate that a plan for
universal military training will be submitted to the Congress, but the Congress
will have the right to accept or reject it so the question of whether we will have
universal military training is still to be decided ; special recognition will be given
to inactive and volunteer reserves recalled to duty and the bill will probably call
for their release from duty in 17 months. In any community the drafting of
those under 19 is not to be permitted until the 19 to 26 age group has been
exhausted.

Provisions for students assure an opportunity for those under 20 and still in
high school to be deferred until graduation. For college students the deferment
to the end of the academic year in which called is retained, but the President
may allow added deferment for those continuing the type of studies considered
to be in the national interest. The scholarship tests recently inaugurated by
the Selective Service Administrator will be a guide to local draft boards in
deferring students beyond the required deferment period.

A signal victory against discrimination and segregation was achieved in the
House. By a concerted effort in which I took an active part we were able to
defeat a proposal which would have enforced segregation on the grounds of
color in the services. This represents the culmination of a fight which I have
waged since 1948 against segregation in the armed services.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3071

The Congress also passed a new Renegotiation Act enabling the United States
Government to recapture from any Government contractor excessive profits
gained out of the defense effort. I also helped to obtain for servicemen on leave
the same reduced rail fares which they enjoyed during World War II. There
also became law a provision for the admission of alien wives and minor chil-
dren of our troops serving abroad free of any quota restrictions.

BUDGET AND TAXES

The President's budget contemplates appropriations of about $71,600 million
for the next fiscal year. Our people appear persuaded to a pay-as-we-go basis
for defense mobilization. This attitude will enable our children to develop the
country further without an even greater load of debt. The national debt at $254,-
727 million is $1,656 per capita.

But a pay-as-you-go basis will call for increased taxes. The President suggested
an increase of personal income taxes to raise $4 billion, an increase of 8
percentage points on corporate income taxes to raise $3 billion and an increase
up to 50 percent of excise taxes on liquor, transportation, films, leather goods,
amusements, and so forth, to raise $3 billion for a total of $10 billion. He
has also proposed that tax loopholes, among which are stated to be oil and
gas depletion allowances, gift taxes, capital-gains taxes, and joint returns
for husbands and wives, be closed in an effort to raise additional revenue.

Considerable effort is being made by business interests to get a general sales
tax. This I have opposed as a regressive tax bearing heavily on those with mod-
erate incomes. It is for the same reason that I opposed the New York City sales
tax increase of from 2 percent to 3 percent, and have also opposed taxes on
such nonluxury items as baby powder, handbags, and cosmetics.

We must increase taxes, but we should do so on the basis of capacity to pay,
looking for increased revenue, first to excess profits from defense mobilization,
corporate and personal, then to the recent heavier corporate profits, then to
more taxes on luxuries and finally to the broad base of excise taxes and general
income-tax increases, but being careful not to increase the already difiicult situ-
ation of the people of moderate income. Taxes to be wise must be selective, too.
For this reason I have introduced legislation to grant the same $600 additional
exemption from tax for the physically handicapped as we give to the blind and
to exempt the first $2,000 of income from pensions received by former Government
employees and the disability payments to those disabled in Government service.

We must cut the cost of Government where we can do so without material in-
jury to our society or the defense mobilization effort. I have supported and will
support cuts in new public construction like rivers and harbors, agricultural price
supports, and overhead costs. I do not and shall not support cuts to deprive us
ot* the full development of our power or other material resources, of needed hous-
ing, of medical research, public health, or to deprive veterans of disability or
other necessary benefits.

PROBLEMS OF THE AGING

Those over 65 now constitute 7.5 percent of our population ; and due to great
progress in the medical sciences and in living conditions by 1975 will probably
constitute about 15 percent of the population. A citizen who has given his best
years to helping build our country is entitled to our solicitude in his later years.
Social-security payments, payable after 65 years of age, average between $60
and $80 per month for individuals, and for families between $100 and $150 per
month. This is inadequate considering present costs of living. In addition,
the social security system covers only those who pay in and their immediate
families ; it does not cover almost one-half of the American people. These must
depend on State and local old-age assistance if they do not have savings.

I am applying myself to finding means, first, of extending to our older citizens
greater opportunity for employment and, second, to seeing how we can provide
for their economic security by a combination of private and public effort.

SENATE CKIME COMMITTEE

The revelations of the Senate Special Committee To Investigate Crime in
Interstate Commerce with Senator Kefauver, as chairman, and Senator Tobey,
as senior minority member, following on the heels of the investigations of the
RFC, 5-percenters, and ship sales, have shocked the country. The moral tone
in Government in many quarters appears to have deteriorated seriously.

3072 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

Connections between public officials and underworld influences shown in the
New York City hearings undermine the confidence of the citizen in government.
Establishment of moral standards as recommended by Senators Fulbright and
Douglas is one excellent approach.

In 1950, with House Resolution G41, I began my one-man campaign to deter-
mine why so many Americans do not vote, confident that if the great majority
of our people are alert to government and participate in it, we shall have better
and more decent government. My campaign was based upon the fact that on
the average only 40 percent of the eligible voters participate in congressional elec-
tions and 50 percent in presidential elections. This campaign is getting cooi>-
eration from States, municipalities, civic, business, labor, and fraternal organi-
zations. I have recently introduced H. R. 3309, the Voters Information Act of
1951, which would permit information on oflBceholders to be posted in post
oflSces.

In the same effort I introduced House Resolution 62 on January 12 authoriz-
ing televising and broadcasting of important debates in the House of Repre-
sentatives. The country was so aroused about the revelations of the Senate
Crime Committee on the links between the underworld and politics because it
saw and heard what went on. I believe the country should have the oppor-
tunity to see and hear what goes on in the Congress, and I shall continue to fight
for this measure.

VETERANS

As we undertake defense mobilization it is more important than ever that our
veterans know that we propose to discharge fully our responsibilities to them.
National Service Life Insurance has been succeeded by free $10,000 life insurance
for those in the armed services. Veterans holding NSLI policies may con-
tinue to enjoy their benefits. If recalled to active duty they will get the benefit of
free coverage while they are on duty and can resume the NSLI policies when
discharged and returned to civilian life.

I have introduced H. R. 1014 entitling the veteran to use his full $7,500 VA
home-loan rights even though he has previously used the home-loan privilege
in part. This is essential to take care of veterans who have had to change homes
due to larger families or for other proper reasons.

CIVIL EIGHTS

In connection with the continuing concern about subversives and other dis-
loyal elements in our country, I have again offered House Concurrent Resolu-
tion 56, my proposal to establish a joint committee of the House and Senate on
national and international movements with full powers of investigation and
with rules of procedure to protect the constitutional rights of individuals.

To deal with evidences of discrimination and segregation on grounds of race,
creed, color, and national origin and to preserve equality of opportunity for
higher education, I introduced H. R. 3347 to deprive institutions of higher
education — other than denominational institutions — practicing such discrimi-
nation and segregation of Federal payments in any form through veterans' edu-
cational benefits under the GI bill or otherwise. In addition, I continue to
be the sponsor of FEPC legislation— H. R. 2092.

POST OFFICE AND CIVIL SERVICE

The continuing curtailment of mail service is still attributed to an effort to
economize in the post ofiice — a saving of $80 million per annum is claimed. It
is true that the post oflSce deficit exceeds $500 million per annum and must be
reduced but this can be done by appropriate rate increases, particularly for news-
papers, periodicals, and other bulk mail now not paying its fair share of the
postal cost and by organizational economies.

Postal and other governmental employees dependent upon Congress for justice
in their pay scales should have increases commensurate with the increased cost
of living. People should not be deceived by the relatively few high bracket
salaries in Government. The great bulk of Government employees get low
salaries and have a hard time getting along today.

In an effort to encourage the merit system in the Post Office I have of-
fered H. R. 3398 to make promotions to supervisory positions on a merit basis.

Other threats to the civil-service system continue like the freeze on perma-
nent appointments or promotions, the efforts to reduce annual and sick leave,
and opposition to retirement after 30 years of service. Governmeait service

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3073

should be made an attractive outlet for the best efforts of those employed under
it, and they should be encouraged to give outstanding service.

ISB^VEL

Israel's problem of absorbing the added emergency immigration of 600,000
Jews from Eastern Europe, the Near East, and north Africa will urgently
require the assistance of the United States. This comes after the most heroic
effort by the Israeli people themselves — who have already taken in almost 600,000,
including 190,000 DP's since 1947 — living as they are under the most complete
austerity and after scraping the bottom of the barrel for contributions in the
United States and other countries. A bill seeking a grant of $150 million of
assistance from the United States to Israel has been introduced by Mr. Mc-
Cormack, the majority leader, and Mr. Martin, the minority leader of the House
of Representatives, and by a distinguished bipartisan group in the Senate
led by Senators Douglas and Taft. I have worked diligently in its behalf
and will continue to do so.

Israel is of the utmost importance to the national security of the United States
in the Middle East both as an industrial workshop and the possessor of a most
effective military force dedicated to fight against Communists or anyone else
threatening that area's security and independence. Israel is truly a bastion of
the free peoples in the Middle East.

IRELAND

Efforts continue to get the House of Representatives to declare it as the sense
of the Congress that all Ireland should be unified. Thousands of citizens di-
rectly and through their organizations are participating. The current session
of Congress is a renewed opportunity for raising this issue and for cooperating
with others of my colleagues to help the Irish people realize their legitimate
aspirations for unification.

PUERTO RICO

The national interests of the United States require that the people of Puerto
Rico shall have full opportunity for self-government and for economic and cul-
tural improvement. They vote June 4 on a constitution and as I pledged on the
Enabling Act before the Congress, I shall do everything I can to see that the
Puerto Rican people have a full and fair opportunity to express and to realize
their own desires.

IMMIGRATION AND DP'S

The Displaced Persons Act was due to expire on July 1, 1951, and of the over
300,000 DP's who were to be admitted over 40,000 were unlikely to be admitted
by the expiration date. The House has passed an extension of the act to Decem-
ber 31, 1951, to accommodate those who would otherwise be stranded.

We need a whole new immigration policy for our country cognizant of the
availability of skilled and useful immigrants in Europe and elsewhere, and of
our need for them to make our country even stronger in the face of the challenges
before us. We are still operating under an outmoded immigration quota policy,
limiting immigration to about 154,000 a year of which only about half is used.
Our law gives large quotas to Great Britain and other countries which do not
use them, while allowing small quotas to Greece, Italy, Poland, and other coun-
tries making prospective immigrants from there wait 5 or 10 years for a visa.
Even with the DP law and nonquota immigrants we have only taken in 205,000
a year for permanent residence on the average from 1948 to 1950. The law
provides that housing and jobs shall be shown to be available for new immi-
grants when they apply for their visas. Within the confines of these principles
our immigration policy should be broadened.

A very important aid to immigration was the recent amendment to the Internal
Security Act (McCarran bill) which took effect March 28, permitting those who
are neither Communists nor Facists or other totalitarians but who involuntarily
had some connection with such organizations under coercion, to become eligible
for immigration to the United States, an eligibility which had been denied to them
heretofore by this law.

OTHER ESSENTIAL ISSUES

At the very opening of the Congress an effort was made to reassert the power
of the Rules Committee which can in effect block legislation from coming up for

3074 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

debate and vote. I opposed the grant of this power and supported the so-called
21-day rule which broke this power in the last Congress. We lost this time, but
I shall join with others of my colleagues in trying again. The way the bill to
aid India with grain in its famine situation was delayed is one example of why
this question is so important.

I introduced again my national youth assistance bill to provide $50 million
to aid youth programs in States and municipalities and by voluntary organiza-
tions like Youth Aid, Inc., which functions in our district. I revised my bill in
line with the recommendations of the Midcentury White House Conference on
Children and Youth recently held and the new problems of youth arising under
the defense mobilization program.

I continued also my work in seeking to bring about modernization of the
Republican Party. It is fundamental to the success of our constitutional society
that both great parties be equally modern and have equal appeal to the people.

CONCLUSION

Our Nation finds itself at the crossroads of world leadership. There are those
who counsel retreat to a Western Hemisphere "Gibraltar." but the facts of the
air and atomic age make this a counsel of fear, not of security. Our security
is to be found in accepting the world leadership which by virtue of our moral
and physical resources we have the responsibility to accept. I am confident that
we wish to, and that we can, lead the world to a new birth of freedom, prosperity
and security encompassing more of mankind than ever before and therefore
deserving greater success than has ever been granted to any people.

[Congressional Record, October 15, 1951]
82d Congress — 1st Session — Final Report — Record and Forecast

Speech of Hon. Jacob K. Javits, of New York, in the House of Representatives

Mr. Javits. Mr. Speaker, since my first report on this session to the people
of my district we have begun to see more clearly the sacrifices which will be
called for to maintain our national security, peace, and free institutions.

foreign policy

During the past months the American people have been called upon again
to make a great decision. The character of the negotiations for a cease-fire in
Korea and the impossible claims for propaganda purposes made by the Com-
munist Chinese and North Koreans have compelled us alternatively to break
off and resume negotiations. Though these have been hard decisions the people
have supported General Ridgway, confident in the fact that in dealing with
the Communists we must neither be misled nor frustrated by chicanery or
delay and judge the situation only on the facts. There is expectation of a cease-
fire in Korea and we want one. We must also be fully prepared to move in
any direction required by the situation.

The people have just backed a large mutual-security program ($7,300 million)
both of military and economic assistance, and finally have noted a signal vic-
tory for our foreign policy in the overwhelming approval of the peace treaty
with Japan at San Francisco with 46 countries for and only 3 Communist
countries against signing this treaty. Equally important is the fact that seven
countries of south and southeast Asia joined the other free nations in ap-
proving the Japanese Peace Treaty, and that the efforts of the Soviet bloc to
obstruct and delay were suppressed with the overwhelming support of the nations
represented at the conference.

Our major foreign problem aside from repelling the aggression by force, con-
tinues to be to head off or counteract internal subversion. Here we are con-
stantly challenged by the fact that a great deal of social and economic reform
Is needed in depressed areas and yet is difiicult to attain under existing condi-
tions. Education, economic reconstruction and development, and technical aid
can form the seedbed for domestic changes in such areas. We must do all
we can to eliminate conditions of oppression and injustice and to bring about
conditions of hope, improvement, and justice.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3075

FAR EAST

The Far East continues with Germany to be the focal point of the Communist
drive at the moment.

The struggle in Korea is at least as important as any struggle we have ever
undertaken for it represents an effort to keep the peace against aggression
before a major war can start and therefore to discourage those who are playing
with the idea of aggressive war. I remain opposed to the admission of Com-
munist China to the United Nations and joined in introducing House Concur-
rent Resolution 231 on June G declaring that this in no case must be the price
of a Korean ceasefire and also calling for the popular choice of a government
on Formosa, now the seat of the Republic of China.

The participation of other United Nations forces in the Korean fighting —
aside from the valiant South Koreans — is still limited though British, Aus-
tralian, Greek, Turkish, and Puerto Rican forces have made great contribu-
tions. But we must remember that most of the United Nations are still fight-
ing towering economic difficulties which we are trying to help them with ; are
preparing their own defenses against communism as in Western Europe — -
NATO — and that at least one, France, is fighting a full-scale war against the
Communists in Indochina.

Our far-eastern policy continues to require concentration upon a mutual-
defense arrangement for the whole Pacific area — a Pacific pact — and upon an
economic-development program for the whole area— a Far East recovery pro-
gram. Steps toward the Pacific pact have already been taken by the mutual-
defense agreements concluded between the United States and the Philippine
Republic, with Australia andd New Zealand and with the new post-treaty
Japan. Now all the other free people in the Far East — Indochina, Malaya,
Thailand, Burma, India, Pakistan, Indonesia, Afghanistan — need to be tied to-
gether for their mutual defense in a suitable defense compact. The Mutual
Security Act for this fiscal year provides $237,.500,000 for economic aid alone
and $535,250,000 for military aid in this area. This is the beginning of an
economic development and military-aid program but still does not get the benefit
of organized self-help and mutual cooperation among the far-eastern states
themselves. This is a result which I believe we must continue to seek to attain.

India remains a difficult factor in this area, having abstained from signing
the Japanese Peace Treaty but I believe the recent United States food aid to
India of $190,000,000 which I helped to sponsor has done much good. India
belongs with the free peoples and will aline herself with them despite the
vicissitudes of the hour. The important point is to maintain the stability of
constitutional government there.

EUROPE

Real progress is being made in the defense of Europe through the Atlantic
Pact but much remains to be done and every effort is being made to stir up the
laggards. The Mutual Security Act for this fiscal year carries $5,028 million
for military and $1,022 million for economic aid to Europe. Europe's problem
is not manpower for defense but military equipment for its manpower. Such
equipment is just beginning to flow over there. It is openly and widely con-
sidered that the next few years are the most dangerous for Europe. The an-
swer is not, therefore, to quit but rather to accelerate our preparations and to
try to bring the objective date nearer. It is for this reason that I have sup-
ported so actively the whole mutual-security program. We are now empna-
sizing military aid 5 to 1 — by 1he figures- — and ending the European recovery
program (Marshall plan). I believe we must do what we are doing on military
aid, but that we cannot afford to ctit so much on economic aid as to lay open
great underdeveloped areas of the free world to Communist propaganda.

GERMANY

A resolution has passed the Congress ending the state of war with Germany. 1
voted "present" on this i-esolution in order to lend point to my warnings to my
colleagues that it was premature. I urged that we be more sure than we are
about what part the people of West Germany will play in the defense of Europe,
how they will deal with the surge of former Nazi elements into high iwsitions in
government, business, and society, the controls they will exercise over the ship-
ment of strategic materials behind the Iron Curtain from West Germany and
the extent to which justice would prevail in restitution and indemnification to

3076 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

the victims of Hitler, thousands of whom are now American citizens. General
Eisenhower summed up the position that I have advocated on the German ques-
tion when he spoke of "an earned equality on the part of that nation," in his
address before the Members of Congress in February.

I shall continue this policy of vigilance with respect to Germany with full
recognition of the enormous part Germany can play in the economic and defensive
power of Europe. I am anxious to see granted on a reciprocal basis all powers
which are earned by the German people. There is much discussion of unitication
between West and East Germany but knowing Communist chicanery as we do we
cannot permit the understandable desire of Germans for unification to be used
as a bargaining point by the Soviets to make the whole of Germany a satellite
state. The unification of Germany cannot be isolated from other West-East
issues.

NEAR EAST AND ISRAEL

The defense of this area is vit^l to the national security of the United States.
It is vulnerable because of the feudal social conditions which are rife through
the area, the high rates of illiteracy, depressed economic conditions, fanatical
leadership in high places, and low state of health which prevails. It is also very
attractive to the Communists because it has enormous oil resources. The failure
of Great Britain and Iran to agree on oil and Egypt's defiance of the United
Nations Security Council and struggle with Britain on the Suez Canal and Sudan
shows the great conflict in this area.

The admission of Greece and Turkey, with their effective and strong military
defenses, into the Atlantic Pact establishes the basis for defense of this area.
Israel is the hard core of defense and democracy in the other areas of the Near
East. She is having tremendous difficulty absorbing an immigration which has
already almost doubled her population in only ?, years. Accordingly I supported
and worked for economic assistance to Israel which was just granted in the
Mutual Security Act in the sum of .$50 million for refugee aid and a shared part
of $160 million for economic development in the whole Near East area, including
also the Arab States. I have also supported and worked for equivalent aid for
the Arab refugees and Arab people recognizing that the Near East is a unit. Our
first object in this area mu.st be peace between Israel and the Arab States and
mutual developmont. We will gain it only by constructive action and not by being
intimidated into doing injustice to Israel by Arab fanaticism.

IRELAND

The Foreign Affairs Committee of which I am a member reported favorably
at long last the Fogarty resolution seeking Irish unification. When brought up
for consideration the House of Representatives refused consideration though
I spoke for and voted for it. I believe the text of the resolution did not suit
the House and this requires a new effort as the basic sentiment is, I believe, in
sympathy with Irish unification as being in our best tradition.

OTHER FOREIGN POLICY SITUATIONS

The release of Robert Vogeler, a United States citizen, who had been im-
prisoned by the Communist Himgarian Government, showed that the Commu-
nist governments are susceptible to world opinion and to countermeasures. I
fought for Mr. Vogeler and was very gratified by his release. He is a living
witness of the implacable cruelty of Communist dictatorship. In conjunction
with the successful efforts to free Rol)ert Vogeler, I continued to work for the
release of Cardinal IMindszenty and the cardinal's successor. Archbishop Groe.sz,
for whose release I sponsored a resolution of protest (H. Res. 32.5).

The problem of Spain has proved a very trying one, particularly in view of
the aid given to Yugoslavia, a Communist country, while Spain is a Falangist
country, both dictatorships. Aid to Spain is thought to be justified on the
basis of her strategic position and military assistance. These must be weighed
against the active opposition of the Western Euroi>ean allies upon whom we
heavily rely in the NATO, particularly Great Britain and France. Spain should
be first passed on for admission into the Council of Europe at Strasbourg and the
Organization for European Economic Cooperation and that is the basis upon
which proper terms can be made with Spain for any aid to be extended.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3077

PRICES AND CONTROLS

Amendmeuts to the price-and-waffe control law were adopted in July. These
weakened rather than strengthened the law, in my view. Agricultural prices,
underlying: the cost of food, continued to receive preferential treatment in price
stabilization. I sought to freeze agricultural prices the same as other prices,
but without success. Other amendments are giving guaranteed profit margins
to distributors and to manufacturers and sijecial provisions embargoing the
import of fats and oils, cheese and other dairy products introduce new elements of
inflation in the price-control situation. The failure of efforts to roll back the
prices of meat to the consumer by 10 percent and to impose quotas on slaugh^
terers to control black markets in meat, both of which efforts I supported, fur*
ther discourage the outlook for strong price and wage stabilization.

I am convinced that working joeople would be glad to hold the wage line if the
price line were hehX but are prevented from doing so by the weak price controls.
I shall continue my fight for a strong and effective control program.

The Consumer's Price Index of the Bureau of Labor Statistics is now at an
all-time high of 186 (19.3.5-49=100) with an index figure of 227 for foods.
This is the most disturbing sign of inflation danger ahead on our domestic
horizon and demands urgent correction.

RENT CONTROL AND HOUSING

I stated in my previous report that I consider New York State rent control
as giving greater protection than the people of New York could get imder the
present or any Federal rent control law likely to be enacted currently. This is
proved in the extension of the Federal rent-control law.

Decontrol of areas (except for military defense areas) was not only made
easier but a new rent increase factor was introduced permitting landlords to get
120 percent of their 1947 rents with a credit for voluntary rent increases taken
by the tenant other than for increased services since that time. This is in addi-
tion to the fair net operating income rent increase formula which still continues
in the Federal rent control law and has resulted in widespread rent increases.

I was successful in carrying over in substance my maintenance of services
amendment in these new Federal rent-control provisions which has been re-
sponsible for blocking many improper rent increases.

My congressional rent clinics continue to function throughout our district in
accordance with the published schedule, under the chairmanship of Hyman W.
Sobell, Esq., and serviced by the volunteer lawyers who are doing such fine work
on rent problems without charge.

The publicly assisted low-rent housing program for which I fought in 1949
called for the construction of 135,000 public-housing units a year for 6 years.
Due to materials shortages resulting from defense mobilization the President
recommended a cut to 75,000 of such units for the coming year and congres-
sional committees cut it to 50,000 units. By an unexpected and untimely move
it was further cut in the House of Representatives to only 5,000 units. The
essential minimum for New York City alone was 15,000 units for the year 1951-52.
After an extended and spirited struggle, featured by a splendid mass meeting
in the city council chamber of New York (which I had the privilege of address-
ing), we were successful in restoring the .50,000 unit figure for this fiscal year.
This should allow 10,000 units for our city which, though far from adequate, is
yet gratifying as compared with the prospects but a short time ago.

ARMED SER\T:CES

The main problem has arisen in connection with the handling of reservists.
It has been felt that the armed services have called many of such men without
due regard for family or economic obligations or, in some cases, fitness for
service. Also, it was alleged that no assignments for many in which they were
really needed were available. Finally, the policy on reservists retention had
been very unsettled despite the provisions in the draft law calling for the release
from duty of reservists after 17 months of service unless retention is demanded
in the national interest. The law has now been amended to provide for manda-
tory release for reservist enlisted men in IG months if they have served a year
or more in World War II, but the 17-months service still obtains for Reserve
officers recalled to duty with 24 months for those in recalled organized units.

I have helped many reservists and their families with these problems and will
continue to do so.

3078 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

I testified before the committee considering tlae Armed Forces Reserve Act,
just passed, urging that adequate consideration be given in recall and release
to dependency status, hardship and reserve status.

The new law creates Ready, Standby, and Retired Reserves. Only the first
group is subject to call-up in emergencies declared by the President ; the others,
only in the event of war. Into the Ready Reserve will go those in organized
units and draftees who have served for 2 years ; the latter will remain in Ready
Reserve for 6 years, which may be shortened to 3 years by satisfactory training
with an organized unit. Four-year enlistees would pass directly into the
standby Reserve. Anyone who had served 1 year in World War II and 1 year
in the Korean action would be transferred into the Standby Reserve as would
those who have served 8 years in a Reserve component since September 2,
1945.

The problem of citizenship for aliens serving in the Armed Forces is impor-
tant. Three years service is now required to make an alien eligible, while
only 90 days service was required during World War II. I am doing my utmost
to get this period reduced.

The West Point explusion scandal has shocked all Americans. High character
on the part of our professional military leaders is vital to national defense and
national morale. No cadet involved was appointed from our district. I feel
that all cases of this character should be considered individually and on their
merits without wholesale condemnation or clearance.

The contemplated size of our Armed Forces remains the same — 3,500,000 —
and efforts are now going forward to determine its adequacy to the problems
of modern defense in terms of air power and atomic weapons. These may well
have a most constructive effect on the size of the Armed Forces we need, their
cost and effectiveness. I shall support full modernization of the armed services.

CIVILIAN DEFENSE

I have supported civilian defense which I consider to be vital to effective na-
tional defense and have also worked for efforts to get Federal help to construct
underground parking garages so important to New York, which could be used as
defense shelters. The House of Representatives recently cut civilian-defense
appropriations by 85 percent — cuts which I strongly opposed. I shall continue
this fight to get adequate civilian defense ; otherwise our civilian population is
dangerously vulnerable to atomic and other new weapons.

VETERANS

Bills were passed recently in the House of Representatives increasing benefits
for disabled veterans and their dependents and also widows and survivors'
and beneficiaries' pensions. In addition allowable earnings for beneficiaries were
increased but these bills have not yet had favorable action in the Senate. I
supported also a bill to provide an increase in compensation from $65 to $120
a month for veterans over 65 with nonservice-connected disability and require-
ing an attendant. The President vetoed this bill but it was passed over his
veto.

I am supporting legislation to extend GI educational benefits to children of
World War II veterans killed in action ; also to extend to veterans of the con-
flict in Korea the same benefits under the GI bill as those enjoyed by World
War II veterans.

I joined others of my colleagues in an effort to prevent the Veterans' Ad-
ministration regional office in New York dealing with national life insurance
and death claims from being moved to Philadelphia.

CIVIL RIGHTS

Since my last reiwrt the fight for the elimination of segregation and discrimi-
nation in the armed services has been marked by a major success — the elimi-
nation of all segregated units abroad. Although segregation has been elimi-
nated in many camps in the United States, it still persists in some. The effort
to abolish it universally continues.

The House rejected recently my amendment to prohibit segregation and
discrimination in community facilities in defense housing, but I am endeavor-
ing to secure these provisions through administrative means. I was compelled
to vote against a bill to help communities with defense installations to meet their

SCOPE OF SOVIET ACTIVITY EST THE UNITED STATES 3079

added school iiroblems for the sa,me reason — segregated schools — through it was
a measure I would otherwise have supported.

A major defect in the Internal Security Act — the McCarran Act — was the
prohibition of entry into this country of persons who as children were forced to
affiliate themselves with Nazi, Communist, and similar organizations in order
to stay alive. This overstringent provision was keeping out some worthwhile
potential citizens. The law was relaxed recently to permit the entry of those in
this category. It demonstrated what I had contended about this act when I
opposed it — that it is unnecessarily strict for any legitimate objective.

BUDGET AND TAXES

For the current fiscal year $57,200,000,000 is being appropriated directly for
the armed services plus an additional amount of approximately $17,500,000,000
for other national and mutual security programs and the Korean conflict.
Other Government programs, including veterans benefits, will require about
$20 billion in appropriations. Actual expenditures, however, for all these pur-
poses will probably be about $08,400,000,000 in the current fiscal year 1951-52.

Our i^eople wish to be on a pay-as-we-go basis for defense mobilization. With
the national debt at $275,386,206,53.5 — $1,659 per capita — this certainly seems
only fair to our children and to our country's future.

The President had suggested a total of $10 billion in new income taxes and
the closing of tax loopholes. The House-passed tax bill proposed to raise $7,200,-
000,000. The compromise tax bill passed will raise an estimated $5,700,000,000
and is made up as follows : An increase in iiersonal income taxes of generally
11% percent of existing rates (11 percent for taxable incomes of $2,000 or less),
which will cause normal withholding to be 20 percent instead of 18 percent as at
present ; corporate income taxes are generally increased from 47 percent to 52 per-
cent ; the percentage used for computation of excess-profit taxes is increased
from 62 to 70 percent and the base on which figured is raised ; and additional
excises taxes are imposed on liquor, gasoline, cigarettes, and certain electri-
cal appliances, while such items as baby oil and admissions to civic and com-
munity concerts, including the Metropolitan Opera, are exempt from excise tax.

Persons over 65 can claim an exemption on their income taxes for all med-
ical expenses up to a limit of $2,500 a person or $5,000 for each married couple.
Persons who qualify as single heads of households can receive half of the income-
splitting benefits now authorized for married persons. Corporation taxes are
to be levied on mutual-savings banks and building and loan associations after
interest payments to depositors and 12-percent reserves, as well as on undis-
tributed, unallocated income of nonexempt farm purchasing and marketing
cooperatives. The Congress rejected a 20-percent withholding tax on dividends,
interest payments, and royalties.

I endeavored to have included in the tax-increase bill my measures — H. R.
1284 and 2818 — to equalize the tax burden on those on retirement pensions, with
those receiving social security by granting a $2,000 exemption and by giving
the physically handicapped the same additional $600 exemption now extended
to the blind. However, the Committee on Ways and Means rejected these pro-
posals on the ground that they were only considering ways to increase revenue.

A great many people have written me about economy in Government and
keeping nondefense expenditures to an essential minimum. I have supported
large cuts in rivers and harbors, conservation payments, and agricultural price
support appropriations which would have saved hundreds of millions of dollars.
I am not supporting cuts to deprive us of needed medical research, public health,
or veterans' services or to jeopardize fair treatment for post oflice and other
Federal employees. I believe this is false economy and these savings are
meager compared with what could be saved where economy is justified. I do
not consider armed services appropriations inviolate and I propose that demon-
strated waste and inefficiency in these appropriations, too, should show in cuts.

OLDER WORKERS AND SOCIAL SECTJRITY

On July 9, I introduced the National Act Against Age Discrimination in Em-
ployment to deal with the problem of older workers. It seeks to prevent dis-
crimination in hiring of workers over 45 due to age. The bill has aroused an
enormous interest in the country and I have pursued it diligently with respect to
the hiring practices of the local governments and the Federal Government. I
have also demanded that the Defense Mobilizer, the National Production Ad-

3080 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

ministration, and other defenes agencies give special attention to employment
of older workers.

No action has been taken on increasing social-security benefits or extending
the system further as it covers today only about one-half of the American people.

1 believe that this situation will and should be corrected.

POST OFFICE AND CIVIL SERVICE

In order to reduce the Post Office's $500 million deficit at a time of unprece-
dented budgets and to cover increased costs of operation, increases in postal rates
calculated to raise $117 million are being made. The increase for postal cards is

2 cents, and for second- and third-class mails (newspapers, periodicals, and adver-
tising, but not books) is 30 percent at 10 percent a year and an increase to
iy2 cents per item, respectively.

During the debate on the measure to increase postage rates, I attempted
to insert an amendment providing for the restoration of the postal services cur-
tailed last year, but unfortunately this move did not succeed. I will, however,
continue my fight for adequate postal services. I am also endeavoring to secure
enlarged post office facilities for our community as many of the present post
offices are undersized and overtaxed.

Legislation to increase the pay of post office workers generally by a flat $400
per annum and to eliminate the first two automatic grades has been passed, and
the pay of classified civil-service workers has been raised 10 percent, with a mini-
mum of $300 and a maximum of $800. I supported this legislation vigorously
for workers who have only the Government to look to for justice. The amount
of the increase is even now not adequate to deal with the cost of living but it
will help.

Graduated leave is replacing the other leave provisions for post office and
civil-service workers, with a minimum of 13 days for those who have served up
to 3 years and a maximum of 26 days for those who have served over 15 years.
Sick leave is fixed at 13 days annually.

Other civil-service problems relate to the need of increased retirement bene-
fits for civil-service workers and the freeze on permanent appointments or promo-
tions. I shall do all I can to help resolve these problems favorably to the Federal
employees affected.

LABOR

Workers as the best example of the benefits inherent in the American system
are extremely important to the defense effort. Their presence on defense mobili-
zation agencies at home and in our diplomatic and economic agencies overseas
is an important element in our strength. It should be encouraged in every way.

I opposed the amendment to the price and wage control legislation which
sought to reduce the position of labor on the Wage Stabilization Board as I
consider the equal tripartite representation of management, labor, and the
public to be essential to the hopes of labor-management cooperation.

The Railroad Retirement Act was amended increasing payments to pensioners
and annuitants by 15 percent and to survivors by 33% percent.

In the closing days of the session. Congress enacted a labor-supported amend-
ment to the Taft-Hartley Act to dispense with union shop elections and to legal-
ize certain union shop agreements made necessary by a recent Supreme Court
decision.

IMMIGRATION

In an article published in the New York Times Sunday magazine (July 8, 1951)
and later condensed and reprinted in the Catholic Digest (September 1951) I
outlined a plan to provide for the admission of alien workers possessing skills
needed in the United States, with a priority for the surplus working force of
those European nations cooperating in the Euroi>ean recovery and mutual secu-
rity programs. To implement this plan I sponsored the Selective Immigration
Act of 1951. Domestic unemployment is down to the almost irreducible mini-
mum in our defense mobilization program and several million additional workei's
will be needed in the next few years. Strategic balance with the population
of the Soviet Union in the next 20 years requires a better immigration policy.

MISCELLANEOUS ISSUES

Disquieting revelations of corruption in Government and of slackness in the
moral and ethical standards of officials have been coming out in volume. So, too,

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3081

have charges and countercharges about Communist influences in Government.
First, we should be clear that the great mass of Government officials are un-
affected and function as loyal public servants. Second, while casting the rotten
apples out of the barrel and supporting all legitimate investigations we should
be careful to apply the time-honored safeguards of our society that no one is
guilty until so proven and that punishment — swift and severe when merited —
should follow, not precede, such proof.

I have dealt with community problems concerning improvement of schools
and playgrounds, traffic conditions, abatement of nuisances and the incidence of
crimes of violence. In the latter, I have had the full cooperation of the police
authorities of the 30th and 34th precincts. The correction of conditions is
not easy but close cooperation between good citizens, public officials, and the
police authorities can do much to help. Crime cannot stand up against an
aroused community.

Conservation of national resources is vital to our survival and our future.
I opposed the tidelands bill which passed the House of Representatives granting
the offshore oil reserves to the States, as I believe only in the Federal establish-
ment can they be made to serve best the people's interest.

Administration of the antitrust laws does not seem to have done much to pre-
serve and develop small business while big business has developed its size and
productivity. Accordingly, I have joined with Senator Morse, of Oregon, to
introduce legislation for a national commission to review the antitrust laws.

My campaign to get Americans to vote has continued. We cannot afford a
society where only 40 percent of eligible Americans normally vote in congres-
sional elections and only 50 percent in Presidential elections. I am also working
toward the same end through my efforts to get broadcasting and televising of
major debates in the Congress.

CONCLUSION

At a time of world crisis we have cause for deep concern yet the strength
of our country and the character of our i)eople give us real reason for optimism.
In the days ahead we shall be sustained and we shall succeed because our free
institutions are deeply imbedded in our hearts and we continue to have abiding
faith in the human values.

[Congressional Record, May 15, 1952]

Eighty-second Congress — Second Session — First Report — Record and

Forecast

Speech of Hon. Jacob K. Javits, of New York in the House of Representatives

Mr. Javits. Mr. Speaker, our people are on the threshold of great deci-
sions. For this purpose they require the greatest amount of information and
enlightenment. I consider it the duty of every public servant to afford this to
the people he represents particularly, and to the country as a whole.

prospects for peace

The present temper of our country may best be described as perplexed. We
face enormous problems and are in a questioning mood as to whether we are
pursuing the right ways to deal with them. Our efforts to bring about peace
in Korea and to assui-e peace for the rest of the world are based upon the
following six points :

First. Resistance to Communist aggression wherever manifested as in Korea.

Second. Regional organization of the free world for defense as in the North
Atlantic Treaty Organization, the Rio Pact, the mutual security treaties with
the Philippines, Japan, Australia, and New Zealand, and the proposed Middle
East Command.

Third. Aid to other free peoples to arm themselves for defense against Com-
munist aggression as in Indochina, Iran, and Formosa.

Fourth. Economic and technical aid to underdeveloped areas notably in south
and southeast Asia, the Near East, Africa, and Latin America, to improve
standards of living and strengthen free institutions.

Fifth. A campaign of truth through the Voice of America and other means of
education and information.

Sixth. Strong support of the United Nations to make it an effective organi-
zation to preserve the peace, to provide international police forces, to establish

7272.3 — 57— pt. 43 6

3082 SCOPE OF SOVIET ACTIVITY EST THE UNITED STATES

workable control over atomic and other weapons of mass destruction, and pro-
gressive disarmament.

Two major problems have arisen in our carrying out this program : First,
the extent to which we can follow our traditional policy of favoring self-deter-
mination for non-self-governing peoples even though when they attain independ-
ence they may not be able to meet the Communist challenge which faces every
new nation nowadays. Second, to head off and counteract Communist internal
subversion in areas which are underdeveloped and depressed and where a great
deal of social and economic reform is needed.

THE FAB EAST

This area continues to be the focal point of Communist aggression. All
efforts to bring about a truce in Korea have been frustrated by the Conmiuuist
intransigeance and are apparently regarded by the Communists on a political
level — a truce to be concluded only when it suits them. Neither the United
States nor the United Nations can jeopardize the American or international
forces there by inadequate or vulnerable truce arrangements nor jeopardize the
action which has driven the North Koreans and Chinese Communists and their
Soviet masters out of South Korea and deprived them of the fruits of the
aggression they began in June 1950. I am for continuing efforts to conclude a
truce while protecting our forces and checking the enemy from getting too
strong.

Other United Nations forces in the Korean fighting than our own — British,
French, Australian, Turkish, Greek, Colombian, Ethiopian, Italian, Puerto
Rican, and others — have been somewhat augmented but are still limited.
It is a fact, however, that these other countries are mounting defense efforts
of their own — notably the NATO countries of Western Europe — that France
is fighting a full-scale war against the Communists in Indochina and Great
Britain is fighting a similar full-scale action against the Communists in Malaya.
It is to be noted that the cost to France of the Indochina action, estimated at
over $1 billion a year is alone more than the amount we provide for France
under the mutual security program.

Our Far Eastern policy urgently needs a Pacific pact, a mutual defense ar-
rangement for the free peoples of the Pacific, and an economic development
program, a Far East recovery program.

The Japanese peace treaty and the security treaty between the United States
and the new Japan providing for the maintenance of defense forces there have
taken effect. The mutual security program for this fiscal year seeks .$408 mil-
lion for economic aid and technical aid and $611,2.30,000 for military aid in the
Far East. United States obligations to aid the Nationalist Chinese to defend
Formosa continue.

India remains a key factor in Asia as far as the United States is concerned.
Should India go the way of China, it could very well mark the end of the free
world in the Far East. It is for this reason that I have applied myself dili-
gently to developing good relations between the United States and India.

EUROPE

The mutual security program for this coming fiscal year 19.52-53 calls for
$.3,360 million for military aid and $1,637,300,000 for defense support aid to
Europe. Great progress has been made in building Europe's defenses through
NATO under General Eisenhower. We have a right to look forward with con-
fidence to the work of his successor. General Ridgway. United States equip-
ment to the extent of over $3 billion has materially helped to build the NATO
defenses. The NATO powers themselves spent over $8 billion for defense in
the fiscal year 1950-51, will have spent over $11 billion in the fiscal year
1951-52, and will spend over $14 billion for defense in the fiscal year 19.52-53.
By the end of this year it is expected that Western Europe will have 25
equipped and ready divisions of its own for defense, and by the end of 1953
this is expected to be increased to 50 divisions. Defense support is aid with
goods and materials instead of guns, ships, planes, and tanks designed to
enable Europe to carry on its own part of the defense program. With the pro-
gram going forward in this magnitude we ought to be over the hump in terms
of Europe's vulnerability to aggression from the east by the end of 1953.

West Germany is a necessary part of European defense so long as she can be
made part of it without compromising free Europe's security. Great strides

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3083

have been made in this respect with confirmation of German participation in the
Schumau plan for the pooling of Europe's i-esources of coal and steel and in
progress with the European defense commiinity for the pooling of the defense
forces of France, West Germany, Italy, Belgium, Holland, and Luxembourg,
and the contractual arrangement with the German Federal Government.

"West Germany is gradually being brought by these means into terms of
equality with the other European countries on a basis of regional organization
which I believe goes a long way to prevent Germany's becoming again an ag-
gressor threat in Europe.

There are three points which still need careful attention : First, the recogni-
tion by the German people of their obligations of restitution and indemnifica-
tion to tlie victims of the Nazis or their families ; second, to guard against a re-
currence of ultranationalist control in Germany by giving the allies the "re-
serve power" to step back into occupation authority if this happens ; and, third,
to prevent the Soviet offers of unification of East Germany with West Germany
from blocking the cooperation of West Germany in free Europe's security.

NEAR EAST (ISRAEL) AND NORTH AFRICA

This is probably the tiuderbox area of the world. Tension exists in Iran
over oil nationalization, in Egypt over the Suez Canal, and the Sudan and in
Tunisia and Morocco over self-governing status. The failure of the Arab States
to negotiate peace with Israel continues. Yet the proposal for a Middle East com-
mand, the United Nations plan for aid to the Palestine Arab refugees, aid for
refugees in Israel, and the technical assistance programs both of the United
States and the United Nations offer a fundamental opportunity for stabilizing
and vastly improving social and economic conditions in this area.

United States aid to Israel and Israel refugees in the current fiscal year is
$64,500,000 with an equal amount to the Arab States and Palestine Arab refugees.
Israel continues to be the hard core of effective defense against aggression from
the east in that area outside of Turkey. Until the Middle East command can be
formed Israel should be invited to become a member of NATO like Greece
and Turkey and for substantially the same reason. The mutual security pro-
gram for 1952-53 calls for $79 million of assistance for refugees and technical
aid to Israel and for $89,500,000 for assistance to Palestine Arab refugees and
technical aid to the Arab States. It marks the backing by the United States
of the $250 million United Nations program just promulgated for the resettle-
ment of the Palestine Arab refugees. Our objective in this area continues to
be peace between Israel and the Arab States and mutual development for so-
cial and economic improvement.

Nationalist aspirations like those in Iran and Egypt would have our sym-
pathy provided they were responsible and did not endanger the free world.
The Cairo riots were very disquieting. It is gratifying that the Egyptian people
took measures to prevent a recurrence. A solution of these situations can be at-
tained through mediation and the United States should use its best offices ac-
cordingly.

In respect of self-determination in Morocco and Tunisia the United Nations
has a great role to play as it had in establishing the independence of Libya
and in dealing with Somaliland and Eritrea in other areas of Africa. It is for
this reason that I questioned the abstention of the United States from voting in
the United Nations Security Council which blocked consideration of the Tunisian
question.

PUERTO RICO

The problems of Puerto Rico have been crystalized through the adoption by
the people of Puerto Rico of a constitution putting them in the status of a fully
self-governing territory, which is up for approval before the Congress. Without
anticipating the result of the review of this document it is yet gratifying that
the opportunity has been afforded to and availed of by the people of Puerto Rico
to provide for their self-government. It is a test of the way in which we will
run our whole policy for the Americas.

UNITED NATIONS

The United Nations continues to be the world's best — perhaps last — hope for
peace. I have supported the continuing efforts of the United States to bring
about implementation of the resolution for the consideration of measures for
disarmament passed by the last General Assembly. I have also urged our repre-

3084 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

sentatives to see if discussions for the control of atomic and otiier mass de-
struction means of warfare cannot be resumed.

The whole question of the veto in the Security Council should be reviewed in
the United Nations, at least as it applies to the pacific settlement of disputes
and a real effort should be made to set up international police forces, the need for
which is so dramatically shown by the experience in resisting aggression in
Korea. The United Nations should be encouraged to take a greater place in
determining the destiny of non-self-governing peoples and those in colonial status.
The United Nations has shown its flexibility through the regional organizations
for defense which it has been possible to establish without violating its structure.

ARMED SERVICES

Our Armed Forces ob.iectives continue to be about 3,700,000 men and women.

A pay raise for military personnel has been voted which calls for a basic
4-percent increase in pay, plus a 14-percent increase in allowances for subsistence
and quarters. It will be of especial benefit to those with dependents.

Implementation of the universal military training plan came up for con-
sideration but was returned to the Armed Services Committee without action at
this time. I supported this move because the legislation before us, due to a
parliamentary situation which developed, had no terminal date and was other-
wise of a kind not intended by a majority of the people. It is possible that the
measure may be brought up again even this year and it will certainly be brought
up again in 1953.

I supported legislation, which passed the House, to enlarge the opportunities
for citizenship of noncitizens serving in the armed services on or after June 25,
1950, and not later than .lune 30, 1955, on a petition filed before December 31,
1952. The bill awaits Senate action. Such citizenship may now be applied for
only after 3 years of service.

VETERANS

The law just passed authorizes a 5-percent increase in service-connected dis-
ability compensation for veterans of all wars who are less than 50-percent dis-
abled and a 15-percent increase for those more than 50-percent disabled.

It increases from $60 to $63 and from $72 to $75 the monthly non-service-
connected disability pensions available to 65-year-old veterans or disabled vet-
erans of World Wars I and II and Korea. For veterans who require the constant
aid and attendance of another person at all times, it provides for an increase
from $120 to $126 in the monthly non-service-connected disability pension.

The pension eligibility income limitations for a veteran without dependents
or a widow without children are raised from $1,200 to $1,400. For a veteran
with dependents or a widow with children the limitation is raised from $2,500
to $2,700.

Legislation, of which I am also a sponsor, is at long last about to come up to
extend to Korean veterans similar benefits under tlie GI bill of rights to those
enjoyed by World War I veterans.

PRICES AND CONTROLS

The price-wage control law is coming up for extension soon, as it expires June
30, 1952. I shall support such extension while at the same time seeking to
strengthen the law. The Consumers Price Index recently leveled vf£ and even
receded a bit refiecting slight reductions in living costs, but this must be com-
pared with the meteoric rise in the price index since the Korean action started
in June 1950, which has placed grave disabilities on moderate income families,
particularly attributable to the very high increase in food prices. I will also
join in seeking to take out of the law provisions giving guaranteed profit margins
to distributors and manufacturers — the Herlong and Capehart amendments.

Wage stabilization has been gravely affected by the situation in steel which
is discussed under the labor section of this report. I introduced legislation for a
Joint Congressional Committee on Consumers as I consider the consumers'"
interests to be the most neglected in the Congress.

The bill permitting prices stipulated by the manufacturer or distiibutor to be
charged for goods bearing a brand or trademark — fair trade — has passed. I
supported it and endeavored to bring about an amendment which would have
insured consumer protection while meeting the needs of small business. I have
impressed upon retailer trade associations the obligation they have to protect
the consumer.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3085

RENT CONTROL AND HOUSING

The peoiile of our district have now had experience with the New York State
rent-control law and can appreciate my views expressed last year that it is liliely
to give greater protection than the people of New York could get under the
present or any new Federal rent-control law. This is proving out as the Federal
rent-control law was greatly weakened in 1951 and is likely to be even more weak-
ened again this year. I shall support Federal rent control and try to strengthen
it, as it is badly needed in many areas not served by State rent-contrOl law as
we are in New York.

My congressional rent clinics continue to function throughout our district
under a published schedule and the chairmanship of Hyman W. Sobell, Esq.,
serviced by volunteer lawyers who are serving thousands of tenants effectively
without charge.

As happened last year the program for federally-assisted low-rent housing
was again cut in the House of Representatives to only 5,000 units for the whole
country. I fought against this cut and will continue to do so and believe that
it may well be restored back to 45,000 units. But this is still not nearly enough
for our problems in New York City. It compares with 50,000 units finally
authorized last year of which New York's share was about 10,000. The resulting
diminution in publicly assisted low-rent housing can only be made up for by
greater State and city housing activity and by a middle income housing program
for the families earning .$3,500 to $4,500 per year who are caught in the squeeze
due to high construction costs today.

A housing development — of both pul)lic and cooperative housing — is proposed
for the Morningside-Manhattanville area in our district and is pending before
the city and Federal authorities. Naturally, we want to see our area improved
liut this can and must be accomplished without serious hardship to the affected
families and indeed with a view to materially improving their housing conditions.

CIVIL BIGHTS

A resolution was adopted by the House to investigate the purposes for which
tax-exempt educational and philanthropic organizations are using their funds. I
opposed it as I felt it cax-ried implications that the social policies and objectives
of the foundations might be in effect censored.

The bombing which resulted in the death of Mr. and Mrs. Moore, at Mims, Fla.,
and the desecration of synagogues and Catholic churches in Miami and Phila-
delphia occurring early in the year catised me to introduce at the opening of
this session of Congress an omnibus civil-rights bill dealing with segregation
and discrimination in opportunities for employment, housing, and education,
and in interstate travel, segregation in the armed services, and antilynching
and autipoU tax. Pr&senting as it did all the civil-rights issues under one cover
it has had a marked effect here.

I have also joined with a bipartisan group of my colleagues in reintroducing
a bill making it unlawful to defame any racial or religious group of our citizens
by material sent through the mails or .shipped across State lines. The United
States Supreme Court has recently sustained an Illinois group libel statute
and I believe this is a valuable means to protect our society against bigotry.

IMMIGRATION

The codification of the immigration laws recently passed by the House may
become law this year. Though codification is desirable, I found it necessary
to opix)se this bill because it contained a new emphasis on racial distinctions
while purporting to deal with some of the old. The eligibility of all people from
the Far East for citizenship was established by the bill, Init on a very limited
quota basis for immigration of 100 per year for each countiy. In return, how-
ever, the immigration laws were materially revised piitting Negroes from the
West Indies on the same very limited quota of 100 per year per British colony
instead of coming in as they have for years under the practically open British
quota. The bill also created a special quota of 100 per year for any immigi-ant,
no matter where born, if he had half or more Asiatic blood. In addition, changes
were made by the bill in the quota system and in the laws regarding admission,
deportation, and naturalization of immigrants, greatly restricting these oppor-
tunities over even what they are now and jeopardizing the status of every immi-
grant and making him subject to deportation even after he had been here for

3086 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

many years. I am continuing my fight in the expectation that the bill may
be changed foi* the better before it becomes law.

BUDGET AND TAXES

There are no material changes in the personal income-tax laws and the details
regarding these laws detailed in my previous report remain in effect. Vital mat-
ters still nee<l correction and these include equalizing the tax burden for those
on retirement pensions with those receiving social security by granting the
former a $2,000 exemption, giving the physically handicapped the same addi-
tional $600 exemption now extended to the blind providing for the traveling ex-
penses of working people to and from work and other reforms. It is unlikely
that income taxes will be either decreased or increased this year.

A very great problem remains the budget. The President's proposed expen-
ditures of $8,500,000,000 against estimated receipts at $71 billion were figured
to result in a likely deficit of $14,500,000,000. Present estimates indicate a defi-
cit of about $5 billion and perhaps less. Our people still wish to be on a pay-as-
you-go basis for defense mobilization ; hence further efforts are called for con-
sistent with the national security to come as close as possible to bringing about
budget balance.

The major element in the budget, appropriations for the armed services, has
already been passed by the House at approximately $46 billion. This repre-
sents a cut of $4,713,945,216 from the budget request of $50,921,022,770. Also,
expenditure for the armed services was limited by the House to $40 billion,
I supported the cuts made and in fact voted for a cut of an additional $2,500.-
000,000 which did not carry, but I opposed the expenditure ceiling because I
felt it would result in making unavailable to us great amounts of defense
material which we urgently need and payment for which would come out of past
rather than present appropriations.

The House has taken action on all appropriation bills except those for foreign
aid, militaiw construction, and some miscellaneous items, and has cut about $6
billion, 10 percent, from the total of $06,721,108,411 — the budget requests in these
bills. Budget requests of over $12 billion remain to be acted on. I anticipate
that final cuts will be about the same percentage.

The aggregate of goods and service produced in the United States, our gross
national product, is now running at an all-time high of .$.339 bilUion. The aggre-
gate national debt of $258,336,700,000— $1,649.25 per capita— is of proper concern
to every American, but comparison with oiir past indebtedness is not valid. This
is so in view of the enormous increase in our gross national product, over three
times what it was in 1939, when it was $91,339,000,000 and our national debt was
$40,439,532,411— $308.98 per capita. While we make every effort in the highest
spirit of patriotism to pay as we go in the defense mobilization, we should at
the same time realize that our country is solid and carrying the defense mo-
bilization effort very well indeed.

True rather than false economy continues to dictate substantial cuts in rivers
and harbors and pork-barrel projects generally — other than those needed to
relieve the tragic Midwest river floods — cuts in agricultural conservation pay-
ments and appropriations for agricultural price supports. I am not supporting
cuts to deprive us of needed medical research, public health or veterans' serv-
ices or to jeopardize fair treatment for post office or other Federal employees.

SOCIAL SECUEITY AND UNEMPLOYMENT INSURANCE

Social security payments raised in the last Congress, but Inadequately, need
to be raised again. The social security system should be extended to the self-
employed, farm workers, and those in the armed services. The allowable
monthly income limitations for social security recipients should be raised from
the present $50 per month to $100 per month — I have joined in sponsoring such
legislation — to make the situation reasonably conform to present standards of
living. Legislation increasing social security payments by a $5 per month base
increase with up to $18.75 per month increase in the higher brackets and making
other needed reforms, including added protection for those serving in the Armed
Forces, and increase of the income ceiling to $70 per month is likely to become
law this year.

Measures are pending to have the Federal Government supplement the re-
sources of States threatening to exhaust their unemployment insurance reserves ;
also, to add an additional 50 percent to State unemployment insurance benefits

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3087

where unemployment is attributable to defense mobilization. There are also
measures pending to enlarge the whole unemployment insurance system by
including employees of practically all establishments and increasing the coverage.
Unemployment insurance is one of the great reforms of our time. I am very
sympathetic to making the system as beneflcial as possible.

Problems of older workers are attracting increasing attention, resulting in
the inclusion in an appropi-iation bill passed by the House of a provision wiping
out age limitations for the hiring of employees by the Federal Government under
civil service. My bill to prohibit age discrimination in employment opportuni-
ties is gaining increasng support.

POST OFFICE AND CIVIL SERVICE

The Post Office Department deficit for the current fiscal year is estimated to be
$768,008,261 and for the ensuing fiscal year it is expected to be $669,332,000. How-
ever, despite increased rates users of the mails are still faced with one-a-day
home deliveries and other onerous restrictions in service. I have intensified
my efforts to get adequate postal services restored. There has been an improve-
ment of mail pickup service in the area north of West 125th Street which I believe
was helped by this effort. Our postal employees are doing an outstanding job
and are now obliged to work harder than ever. What the Post Office Department
urgently requires is modernization, adequate pay and conditions, and merit
promotion for its employees — a measure which I am sponsoring, H. R. 3398 — re-
organization of the Department in accordance with recommendations of the
Hoover Commission and realistic rates for third-class mail — newspapers and
periodicals.

I have opposed curtailment of annual and sick leave granted Federal employees
as this is a false economy which is in effect a reduction in wages. I have also
opposed the Whitten amendment making promotions and appointments tem-
porary. Government workers should have the opportunity for permanent pro-
motion to higher grades now as before where their service and ability entitles
them to it.

The increasing cost of living imposes its heaviest burdens on those who live
on fixed incomes and I am supporting increases in payments to those receiving
annuities and pensions from the Federal Government.

The seizure of the steel plants as the result of the inability of labor and man-
agement to get together on wages and working conditions has profoundly dis-
turbed our country ; the courts will probably have passed on the question when
this report is received.

I have repeatedly pointed out that Taft-Hartley injunctions are not neces-
sarily a solution as a strike can still come at the end of the 80-day injunction
period and such injunctions are also offensive to labor. Neither is an investiga-
tion of the Wage Stabilization Board a soUition. I have sponsored for this
reason the National Emergency Seizure Act of 1952 — H. R. 7449 — setting ihe
conditions of seizure in a national emergency, providing that no one should
profit from it and that operations only to the extent essential to the national
security and health should be continued. I feel the responsibility in tiiis
matter is that of the Congress and that Congress should take the authority and
use it.

A great many working people have felt that the Wage Stabilization Board is
not acting quickly enough in passing on wage-increase cases requiring its deci-
sion. I have made and will continue to make every effort to see that the Board
gives prompt and realistic action in view of drastically increased living costs.

MISCELLANEOUS ISSUES

More alarming revelations of corruption in the Federal Government have
come out since my last report particularly in the Internal Revenue Bureau,
the Commodity Credit Corporation, and the Department of Justice. Our higher
officials cannot avoid the responsibility for shocking conditions under their ad-
ministration even if not personally involved and must take the responsibility
also for letting out the Honorable Newbold Morris. I am sponsoring a bill
for an Office of Government Investigation to deal with this situation of honesty
in Government on a year-round basis.

The great interest in nominations for the Presidency, in both parties, has
emphasized the value of presidential primaries now available in only 17 of our
48 States. I have given support to the extension of this effort in addition to
my continuing efforts to bring about televising and broadcasting of important

3088 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

congressional proceedings and to materially increase voting participation in our
country. I have introduced new legislation to improve the opportunities for vot-
ing by the men and women in our Armed Forces.

Our national resources have suffered during the war years. "We must take all
conservation measures to restore them and all measures to greatly increase the
availability of raw materials from abroad. I am continuing my opposition to
the tidelands bill granting the offshore oil reserves to the States rather than to
the Nation. Our country must give very careful consideration to the St. Law-
rence seaway and power development project as it is in the interest of all Ameri-
cans to be sure that we do not overlook the potential inherent in the develop-
ment of any great part of our country.

New York City has suffered in certain of its major industries, like construc-
tion, men's clothing, and other soft goods manufacturing due to defense
mobilization. I have joined with others of my colleagues in vigorous efforts to
get the Federal Government to take special measures to help with these
problems.

In our local community problems we have been able to effect some reforms in
traflSc conditions and to make some progress with crime conditions. But there
is still a long way to go. The community has been aroused ; cooperation be-
tween citizens, public officials, and police authorities has been better and these
-will bring about increasing improvement.

CONCLTTSION

The exigencies which face us are so great that we cannot afford to pause.
It is a tribute to the strength of our people and our institutions that few
Americans doubt that we shall come to the great decisions on the Presidency
without any lessening of our efforts to defend and preserve free institutions
and human liberty.

[Congressional Record, July 4, 1932]

Eighty-second Congkess, Second Session — Final Report, Recokd, and Foeecast

Speech of Hon. Jacob K. Javits, of New York, in the House of Representatives

Mr. Javits. Mr. Speaker, as we prepare for great decisions on the Presidency
we recognize that there must be no indecision in our national policies until
the day the next administration takes over. The people are entitled to the
maximum amount of information on which they can base their judgment in
these days, and it is the responsibility of every public official, insofar as he is
possibly able to accomplish it, to see that every citizen in his area is fully in-
formed.

THE issue of peace

Peace continues to be the dominant issue of our time. It is an issue which is
being misused and abused by the Communists who suggest that anyone who is
against their policy of surrender to anything the Soviet Union wants or to Com-
munist pressure within any country is acting against peace. Resistance to
Communist aggression against weaker peoples and subversion within free states
does not mean war ; it means only honesty in the quest for peace. It seeks to
avoid the mistakes which the free world made when it pei"mitted Japan to take
Manchuria in 1931, Hitler to march into the Rhineland in 1934, and Mussolini to
seize Ethiopia in 1936. Once such actions were permitted to go unpunished they
assured the start of World War II. Similar actions like armed aggression in Ko-
rea, unchecked now, will just as surely lead to world war III.

A great deal is made by Communists and Communist sympathizers about the
immediate calling of a five-power conference between the United States, Great
Britain, and France on the one side and the Soviet Uni(m and Communist China
on the other. In principle there is no inconsistency between being always will-
ing to talk and at the .same time establishing our defense capabilities. Yet we
always have before us the examples, first, of the Deputy Foreign Ministers Con-
ference in Paris in 1951 which was used as a sounding board for Communist
propaganda for over 3 months, and then came to nothing ; second, the truce ne-
gotiations in Korea which are being cynically used by the Communists for world
propaganda about such barefaced frauds as "germ warfare" while covering up
greater military preparations to endanger our and the other U. N. forces in

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3089

Korea. The right course is to be willing to meet with the S'oviet Union under fair
conditions and an agreed-upon agenda for the discussion of all major causes of
friction but not relax our preparations for defense until the Communists show
by their deeds that they really seek peace. Such a meeting should be held
under the auspices of the United Nations as the best way to inspire confidence
in the nations which do not participate.

The whole United Nations structure has the greatest potentiality for securing
the peace. In too many circles it is becoming popular to condemn the United
Nations without recognizing that it is a world forum where words, not bullets,
can be exchanged, and which remains mankind's best, perhaps last, hope for
peace.

The Soviet Union and the Communist bloc insist on seeking to frustrate the
will of the free peoples in the United Nations at every turn with vetoes, delays,
false propaganda, and finally with insults and falsehoods. So long as this
effort to sabotage the United Nations from within continues, no fairminded
person can believe the protestations of the Soviet bloc about peaceful intentions
or even of sympathetic interest in the problems of men and women everywhere.

UNITED STATES FOREIGN POLICT

As permitted by the United Nations Charter, regional organization for self-
defense has been strengthened through the North Atlantic Pact, by our mutual
security treaties with Japan, the Philippines, Australia, and New Zealand, and
by the Rio Pact with our Latin- American neighbors.

A large part of the foreign policy of the United States is expressed today by
the mutual security program. Under this program, there has been appropriated
for the current fiscal year $6,031,947,750, a reduction from the $7,900,000,000
requested by the President. Of this amount, $3,415,614,750 is for military aid
and $1,282,433,000 for defense-support aid to Europe; $560,316,500 is for mili-
tary aid to Greece, Turkey, and Iran ; $.50,822,750 is for technical and economic
assistance to the countries of the Near East, and for the relief of refugees there
$130,291,250 is provided. For the Far East there is provided $564,807,500 in
military assistance to Indochina, Formosa, and the Philippines, and $321,412,500
for economic and technical assistance to these countries and to India, Pakistan,
Burma, and Thailand. In Latin America the mutual security program provides
$57,685,750 in military aid and $20,329,000 in technical assistance.

Funds are also provided by the defense appropriation bills for United States
forces which are now stationed in Europe and in Japan and which are engaged
in the fighting in Korea.

KOREA

As this is written, efforts to bring about a truce continue to be frustrated by
the Communists. It has been one excuse after another with them ; now the
Communists state that all prisoners, whether or not they wish to go back into
Communist hands, must be delivered to them. This means to thousands almost
certain death to themselves and destruction to their families. If we wish ulti-
mately to win the world away from the Communists, people must first be con-
vinced that we can be trusted not to deliver them back to the Communists once
they are free. We must also be extremely vigilant about the safety of United
States prisoners of the Communists.

We are fighting in Korea to punish armed aggression against peaceful people
and to deprive the aggressor of the fruits of his aggression. This we have done
successfully, so far. It is not necessary to become involved in a major Asiatic
war on the mainland of China into which millions of Americans could be drawn,
to accomplish this purpose.

The other non-Korean U. N. ground forces in Korea are only 20 percent of
our own and we need all the help possible from the other free peoples. But
those best able to supply forces, like Great Britain and France, are already
fighting full-scale actions against Communists in Malaya and Indochina, re-
spectively, and are suffering great losses in the process. They are protecting us
in those areas just as we are protecting them in Korea. Almost half of the
fighting in Korea is being done by the South Koreans themselves in the ROK
divisions while our divisions are 50 percent of the total ground forces engaged.

Other powers which have military potential are either too poor economically
or too disturbed internally to make their contribution to the Korean action.
What we have to do is to help them straighten out some of their problems, eco-
nomic, social, and political, to get more aid in Korea.

3090 SCOPE OF SOVIET ACTIVITY IN THE "UNITED STATES

Korea ties down the Communist Chinese and means they cannot move else-
where in other parts of Asia as easily. In the meantime we should seek greater
contributions from the other United Nations in relieving our manpower in Ko-
rea. This can work as effectively as our own present rotation policy is working
in Korea in keeping the morale of our troops there very high.

EUROPE

The contractual arrangement with the German Federal Government will in all
likelihood be approved, and this is tied in directly with the participation of Ger-
man military formations in the European Defense Community — European Army.

There is reason for deep disquiet in the contemplation of any German mili-
tary formations, but a study of the European Defense Community agreement
shows that real efforts are being made to pi'eveut German domination either of
the European army or of its directing staff and to prevent the danger of Ger-
many's withdrawing and utilizing the forces which it contributes for its own
purposes. The United States, Great Britain, and France have given guaranties
that this will not be permitted and these guaranty agreements are to be approved
at the same time as the agreement with the German Federal Government.

This contractual arrangement with the German Federal Government is weak
in many respects, primarily as to the dispositions regarding the Nazi war crimi-
nals, restitution of property taken away by the Nazis, indemnification for suffer-
ing in concentration camps to the victims of the Nazis and their families and
effective control against any threatened return of ultranationalist excesses.
The agreement is strong in maintaining allied authority over West Berlin, over
any agreement for the unification of East and West Germany and over any final
settlement of German frontiers. The Soviet Union continues its propjiganda
efforts i-egarding German unification with the intention of making all Germany
a Soviet satellite. The United States, Great Britain, and France have indicated
their willingness to discuss German unification but only and necessarily on the
basis of free all-German elections under international supervision.

NEAR EAST AND NORTH AFRICA JEWISH AND ARAB REFUGEES

This area is troubled by two major problems — ultranationalism and refugee
resettlement. United States aid is mainly directed toward dealing with ref-
iigee resettlement, but the United States lacks a positive policy for dealing
with ultranationalism. Our Government has apparently been content to fol-
low the British lead. Britain's difficulties in Egypt and Iran and its grave
errors and injustices in seeking to block Jewish immigration and the establish-
ment of Israel in 1946 and 1947 have shown that the United States must have
a policy of its own in this area. This policy should be built upon aid to resettle-
ment of the refugees who are the most nettling problem in the whole area and
defense based on dependable factors in tlie area.

Our 1952-5.3 mutual security appropriations provide $60,06.3,250 for resettle-
ment of the Palestine Arab refugees — the United States contributions for this
year to the 3-year $250 million U. N. resettlement program — and $70,228,000
for the resettlement of the Jewish refugees in Israel. There is also provided
for the Arab States over $20 million in technical assistance, while for Israel
$3 million is provided for technical assistance. Vigorous efforts, with the full
aid of the United States, with the surrounding Arab countries in the imple-
mentation of the United Nations resettlement plan, is essential for the resettle-
ment of the Palestine Arab refugees. Continued United States assistance to
Israel, which has been performing so magnificently in this field, is necessary
to help with the Jewish refugees.

Peace is most ui-gently needed between Israel and the Arab States, which are
still practically at war, being only under existing armistice agreements. Israel
wants to negotiate for peace, but the Arabs are seemingly unwilling. We must
make every effort to bring about a just and lasting peace, recognizing the per-
manency of the brave, young State of Israel.

As the Middle East Command for the defense of this area cannot be formed,
due to the unwillingness or unreadiness of the Arab States to participate, pro-
tection of the area should be extended by Greece and Turkey, which are already
members of NATO, joined by Israel. Israel admittedly has the most effective
military forces there, outside of Greece and Turkey. The vital character of
this part of the world, considering its enormous oil resources, the fact that the
Soviet Union is very short of oil, and the social and political ferment and dis-

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3091

order in the Near East, are all signals of danger there. Vital defense measures
can no longer be deferred.

INDIA AND PAKISTAN

Together with a bipartisan group composed of members of the Senate Foreign
Relations and the House Foreign Affairs Committee, I sponsored a resolution
expressing our country's concern in India and Pakistan and our desire to extend
economic and technical help for their plans to improve food production and
living conditions. This has a vital bearing upon the kind of society and govern-
ment vrhich will exist in this area.

India and Pakistan are vital elements in the free world's security. They have
taken careful note of the fact that Communist China has already swallowed up
Tibet, right on their border. They know the cynical disregard shown by the
Communists for India's famine-relief needs last year. A resolution of this
kind is the only way under our constitutional processes in which the American
people can express to the people of India and Pakistan a continuing interest in
their development. It will be an important matter before the new Congress.

PUERTO RICO

Congress has approved, with certain reservations, a constitution for Puerto
Rico giving that territory full self-government. These reservations brought
into question certain of the social aspirations of the Puerto Rican people regard-
ing full employment and higher living standards as expressed in this document.
I believed that the Puerto Rican people were entitled to full expression of their
aspirations in their constitution so long as they had representative and free gov-
ernment. A needed reservation to protect the right of parochial-school children
to continue to attend the schools of their choice was in another category. Puerto
Rico accepted the reservations and they do not seem to have diluted the self-
government the constitution gives to Puerto Rico. It is another expression of
a great American policy toward its Territories and possessions — both peoples
are to be congratulated on the outcome.

VETERANS AND SERVICE PERSONNEL

The new Korean GI bill of rights provides for servicemen who have at least
90 days of service subsequent to June 27, 1950 — not necessarily in Korea — up to
36 months of free schooling with monthly allowances, on-the-job and farm train-
ing, home and business loan guaranties up to $7,500, niustering-out pay and rights
to unemployment compensation. Basic allowances to veterans taking education
or training are $110 per month for single veterans, $135 per month for married
veterans, and $160 per month for veterans with more than 1 dependent. Benefit-
ing from the experience of the World War II GI bill, the law is designed to
minimize education and housing frauds which have victimized so many veterans
in recent years. Education payments are made directly to veterans, and loan
guaranties may be refused on homes built by persons who had previously sold
defective housing to veterans.

I have done my utmost to encourage voting by our troops on active service
through the introduction of legislation to that effect, by communicating with the
President, who sent a special message to Congress on the subject, and by other
means. In the State of New York such voting is relatively simple. The service-
man— as well as his family living out of the State with him — should make appli-
cation before October 24 to the division of soldier voting in Albany or on standard
form 76 provided at all military installations. I strongly urge that all who have
relatives or friends serving in Korea urge them to vote in this vitally important
presidential election year.

PRICES AND CONTROLS

The wage-price stabilization law has been extended in the main until April
30, 1953. Changes made in the law have weakened, not strengthened, it. Fresh
and canned fruits and vegetables are exempted from all price controls dof-'pite
strong opposition in which I joined. Guaranteed profit margins to distributors
and manufacturers are raised, not lowered.

The preferences to the prices of agricultural products which have resulted
in record highs for food prices are further raised by inserting a floor in the shape
of a guaranteed price support of 90 percent of parity for major farm products.
I fought against such a guaranty both in the Defense Production Act and in the
bill to amend the Agricultural Adjustment Act. Notice is gradually being served

3092 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

on the representatives of agricultural districts in the Congress that the consumer
is waking up to the meaning to him of unjustified and unreasonable agricultural
price preferences and guaranties, much as we favor basic and needed protection
for farm families.

Only two gains were obtained for consumers in the price-wage stabilization
law. One was to open our markets to the admittance of cheese from France,
Italy, and Denmark to a greater extent than the law had previcusly allowed.
The second, under an amendment I sponsored was to require a report to be made
by a congressional committee on how the law will be affecting prices for con-
sumers, the first time consumers have been specifically mentioned in thi.^ law.

Wage-stabilization procedures have caused some delays in the decision of cases
by the Wage Stabilization Board granting wage increases, thereby holding up
wage adjustments for many workers whose families were affected seriously l»y
the high cost of living. I have worked with some success to break the logjam on
such applications.

The Federal fair-trade law, permitting prices stipulated by a manufacturer
or distributor to be charged for goods bearing his brand or trademark in States
having State fair-trade laws, will be law when this report is issued. It is a meas-
ure of vital importance to every small-business man and therefore businessmen
should insure that it is utilized with fairness to the consumer.

I fought against the effort to prevent American participation in the Interna-
tional Materials Conference which, though a foreign-policy and defense question,
was tacked onto the Defense Production Act. As we import all or much of — about
two-thirds, the strategic items of material we need for defense, fair international
allocations of these materials at fair prices are vital.

KENT CONTROL AND HOUSING

The new wage-price stabilization law also extended Federal rent control. This
law has been covering 8 million American families in other States which, unlike
New York, do not have their own rent-control laws. But Federal rent control
was further weakened at this session by an automatic decontrol provision. It
provides that unless the aff'ected town or city, if it is not a critical defense area,
specifically requests Federal rent control to continue, it ends as of September 30,
1952. This again demonstrates my conviction that the people of New York are
getting and can continue to get better protection through the New York State
rent-control law than they could hope to get under Federal law. People in my
district with rent problems continue to be welcome at my free congressional rent
clinics about whicli information may be obtained by writing to me.

Despite a great struggle, the Federal publicly assisted low-rent housing program
again suffered in the Congress. It took almost superhuman effort to win back
35,000 units for this year as against the 5,000 which was at first voted by the
House of Representatives. This means that New York City can only be allotted
under 5,000 Federal public-housing units this year despite the urgent shortage,
though it had been hoped to make this figure 10,000.

I joined with others of my colleagues to sponsor Public Law 370, which facili-
tates slum clearance under title I of the Housing Act of 1949 by permitting mu-
nicipalities to collect assistance payments on account from the Federal Gov-
ernment.

In recognition of the fact that middle-income families earning $3,500 to $4,500
per year are the worst off in getting new housing as they do not qualify for public
housing and cannot afford high priced newly built private housing, I introduced
the Middle Income Housing Act of 1952. Tliis bill seeks to provide $3 billion
in very low interest rate loans by the Federal Government for middle-income hous-
ing that cannot otherwise be obtained and provides other aids for slum clearance
and to reduce construction costs. The $3 billion in lovz-interest loans could pro-
vide upward of 400,000 additional units at rents middle-income families could
afford to pay. The issue is so vital that it must be kept before the country during
the coming election campaign to be sure it gets attention early in the next
Congress.

CIVIL EIGHTS

Civil rights promises to be one of the burning issues of 1952. Our country's
position in the world which will be so heavily determined by the colored races
and the vindication of our own Constitution require us to act on complete civil-
rights legislation in the next Congress. I have introduced an omnibus civil-
rights bill for this purpose, H. R. 5945. Almost at the very end of this session
a subcommittee of the Senate's Conmiittee on Education and Labor reported

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3093

out the Ives-Huiiiplirey FEPC bill, sponsored by Senator Irving M. Ives, of
Xew York, and Senator Hubert Humphrey, of Minnesota, which provides for
an FEPC with full enforcement powers and which is the most promising FEPC
bill to have come before the Congress.

Federal civil-rights legislation, including a Federal Fair Employment Practices
Commission with enforcement powers, anti-poll-tax and antilynching legislation,
legislation against discrimination and segregation in housing, education, trans-
portation, and public facilities and to eliminate the last vestiges of segregation
in the Armed Forces have generally been made almost impossible by the rule of
imlimited debate in the Senate. It is vital that the fight be made on this rule at
the opening of the new Congress. Debate in the House of Representatives is in
The control of a majority and this should be generally so in the Senate. In this
way the people's will cannot be frustrated.

The end of filibusters in the Senate and the enactment of civil-rights legisla-
tion can be the soonest obtained by a coalition of progressive elements in the
Congress regardless of party.

IMMIGRATION

We now have a new immigration bill, the result of the overriding by the
Congress of the President's veto of the bill. I voted to sustain this veto and
have fought consistently against this law as being a step backward. First, it
establishes a color line on immigration from the Caribbean, bi-eaking down the
long-established practice by which people from the West Indies were admitted
under the British quota. Second, it aggi-avates discrimination against immigra-
tion from southern and southeastern Europe inherent in the quota immigration
law by adding new preferences to those already existing. Third, it jeopardizes
the status of l:hose who come in as immigrants, making them liable for deporta-
tion or even loss of nationality for years to come. It will be necessary in the
new Congress to do everything possible to bring about amendment of this law
to correct its glaring deficiencies.

Though the law lifts the ban on the entry and eligibility for naturalization of
Asiatic peoples, it does so under minuscule quotas of 100 per year per state of
origin for an aggregate of only 2,000 per year, and makes those of one-half or
more Asiatic blood, no matter where born, subject to those quotas. A final end
to oriental exclusion is highly desirable, but could have been effected under
.separate legislation which was before the Congress.

I consider the liberalization of our immigration policy to be required also by
the need for cooperation with the other free peoples for the absorption of the
surplus working populations of Europe. Such a program, so important for the
free world, cannot be realized without the kind of American leadership which
resulted in the settlement of the DP problem — by our taking our fair share.

SOCIAL SECURITY AND OLDER WORKERS

The Congress has enacted into law a measure increasing social-security bene-
fits by an estimated $540 million yearly. This bill increases monthly old-age
and survivors insurance benefits by $5, or I2V2 percent, whichever is greater ;
increases to $75 the amount a person may earn each month and still qualify for
old-age and survivors insurance payments ; gives those serving in the Armed
Forces an automatic social-security credit on the basis of $160 monthly earn-
ings ; increases to $25 the minimum benefit payable to a retired person, and in-
creases the maximum benefit payable to a family from the present $150 to
S168.75 a month ; increases by $5 a month the Federal share of direct assistance
payments to the needy aged and persons who are blind or totally disabled and
increases by $3 a month Federal grants for dependent children. While I be-
lieve the limitations on earnings should have been eliminated entirely and bene-
fits should have been increased more in line with living costs, this bill is a step
forward.

Also enacted into law, as a part of the independent oflSces appropriation bill,
was a provision seeking to eliminate age qualifications for employment under
the Federal civil service. I fought for this measure as part of my efforts to
secure equal opportunity for workers over 4.5 — the subject of my bill, H. R. 4731.

COST OF GOVERNMENT

Though personal income taxes were not increased in this session, they are
already so high that every citizen is necessarily interested in Government ex-
penditures nnd economy. In addition, the heavy deficits, even under present

3094 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

high taxes, contribute further to inflation and reduce the value of savings and
the purchasing power of those living on fixed incomes.

The deficit for the current fiscal year was about $4 billion, and the deficit for
the fiscal year which began July 1, 1952, and which will end June 30, 1953, is
estimated at $10 billion. Congress cut appropriations from the amount re-
quested by the President by over $8 billion, granting approximately $80 billion,
as opposed to requests of approximately $88,500 million. Essential appropria-
tions for defense and veterans are the biggest part of these figures.

Injustices and false economy need to be righted iust as forcefully as true
economy needs to be imposed. Agricultural conservai ion payments costing $250
million could be drastically cut, even according to the leading farm organiza-
tions themselves ; so could the cost of agricultural price supports. "Pork barrel"
projects for rivers and harbors could be sharply reduced without disturbing
urgently needed fiood control. Defense Department's appropriations, essential
as they are, aggregating over $46 billion, with an additional amount of over
$4 billion for construction, still have some water in them. On the other hand,
the denial of $300 million for Federal aid to schools, $30 million for Federal
aid to college students, the drastic cut in the publicly assisted low-rent housing
program, and the cuts of appropriations for conserving national resources where
they were needed were ill advised.

There are loopholes and inequities in the personal income-tax structure which
urgently need righting by the next Congress. It is estimated variously that
$1 billion to over $3 billion in additional tax revenue a year is lost.

CIVIL SERVICE AND POST OFFICE

Pensions for retired civil-service employees have been raised, beginning
September 1, 1952, and ending June 30, 19.55, by $36 for each full 6-moDth period
between the date of retirement and October 1, 1952, with a ceiling of $324,
or 25 percent, whichever is the less. The increase when added to the present
annuity must not exceed $2,160 annually. This increase will be discontinued
on June 30, 1954, unless Congress appropriates money by that date for the
fiscal years 1954 and 1955. This increased annuity also applies to those re-
ceiving survivorship benefits, becoming effective September 1, 1952. The Congress
set up a committee to make a study of the various Government retirement
systems and report back to Congress not later than December 31, 1953.

The Whitten rider making appointments and promotions temporary only,
has served, I believe, as a serious block to the merit system. It has been
modified to permit permanent promotions under some circumstances, to give
consideration to all prior service in promotions instead of only service imme-
diately prior to the proposed promotion, and to permit the Civil Service Com-
mission to make exceptions to the promotion restrictions of the law in order
to avoid undue hardship or inequity.

The shortsighted policy of the Post Office Department in curtailing mail de-
liveries and other postal services continues despite many protests. This has
resulted in an actual increase in the aggregate number of employees — substitute,
temporary, and regular — rather than a reduction and has markedly increased
the ninuber of disability retirements among postal workers. I am continuing
my fight against the curtailment and for justice in earnings, conditions, job
security, and retirement for postal employees.

AUTOMOBILE ACCIDENTS

Due to the increasing rate of motor-vehicle traffic accidents and fatalities
and the rising rates for automobile liability insurance, I introduced a resolution
calling for an investigation by the Congress of laws regulating the operation of
motor vehicles and motor carriers, auto liability and insurance rates and meas-
ures which the Federal Government can take in these matters. This bill
has received a tremendous response as it brought forcibly to attention a sit-
uation which has been gradually created due to the vast increase in interstate
travel by auto and in which the Federal Government could, therefore, take a
useful part. It is probable that there will be action on it in the new Congress.

MISCELLANEOUS ISSUES

Man does not live by bread alone. For this reason I introduced a bill to
establish as a branch of the Smithsonian Institution an American Academy
of Music, Drama, and Ballet, as part of a National War Memorial, for the educa-
tion of selected pupils in the various phases of these arts.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3095

I did my utmost to save Champlain College at Plattsburg, N. Y., from being
taken over by the Air Force for use as a military installation as it is so im-
portant to encourage low-cost, nondiscriminatory education, an opportunity for
which is being denied so many young people. Though the fight was lost for
the moment in the Congress so much interest was stirred up that I believe
some way will be found to continue to make these facilities for higher education
available iu New York.

The effort to televise and broadcast important congressional sessions upon
which I have been working is being confirmed by current political experience.
It is becoming inevitable that broadcasting and televising of important con-
gressional sessions will soon be considered a "must" by the American people.

Individual instances endangering our moral strength constantly arise. I
fought against the retention by the Air Force of a German doctor it had hired
alleged to be implicated in the .shocking medical experiments conducted by the
Nazis during the war. I am glad to say that this doctor's contract was not
renewed and that he has left the country.

EVERY CITIZEN SHOULD VOTE

We are facing as important an election as we have ever had in what is not too
accurately called peacetime. The collective judgment of all our people and no
less is required in fairness to ourselves and our posterity. A new President
and a new Congress will make decisions involving peace and the economic,
social, and political future of our people which will determine the course of
our lives for decades — and probably of the lives of other free peoples. It is
the duty of every citizen to make it his business between now and election day
to read, to listen, to observe, and to consider our national issues, tlien to register
and to vote with the dignity and responsibility that such interest will bring,,
on election day, November 4, 1952.

[Congressional Record, May 5, 1953]

Eighty-Third Congress, First Session, First Report — Record and Forecast

Speech of Hon. Jacob K. Javits, of New York, in the House of Representatives

Mr. Javits. Mr. Speaker, the new administration under President Eisenhower
has been in office about 3 months. I believe that it has been characterized by a
sense of responsibility rather than by virtuosity or improvisation. It is a proper
time to take stock of what has been done and to determine what is forecast for the
future.

POST-STALIN PEACE HOPES

The death of Stalin marked the end of one era in the prospects for peace.
We have been treated lately to more temperate language from the Soviet Union
and the Communist satellites but by small evidences of an actual change of posi-
tion. Whether even the softer words are dictated by internal weakness or a
struggle for power between the Big Three who succeeded Stalin — Malenkov,
Beria, and Molotov — the free world does not know. In any case, our real desire
for peace and world settlement requires us to take at face value any Soviet over-
tures toward peace and world settlement while at the same time we do not
slacken our efforts for the common defense of the free world and for major im-
provements in its economic and social position. This has been, generally, the
policy pursued by the new administration and was dramatized in the President's
speech before the American Society of Newspaper Editors on April 16.

There has been new consideration of a four-power conference between the
United States, Great Britain, and France on the one hand and the Soviet Union
on the other to deal with East-West frictions. The right course is to be willing
to meet with the Soviet Union under fair conditions and, if it will not drag out the
situation interminably as it did in Paris in 1951, to agree upon an agenda for the
discussion of all major causes of friction. Such a meeting should be held under
the auspices of the United Nations as the best way to inspire confidence in those
nations which do not participate. The President has already pointed out that
Korea is a problem of one piece with the struggle in Indochina and Malaya ; that
the unification of Germany is a problem of one piece with the whole security of
Europe and that trade between the free world and the Communist bloc is a prob-
lem of one piece with all of world trade. On this basis, under U. N. auspices.

3096 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

negotiations may prove fruitful. I shall endeavor in every way to help in for-
warding this kind of policy.

The Soviet Union and its satellites initiated a wave of anti-Semitic persecution
with the accusations against the nine doctors in Moscow and purges in Hungary
and Czechoslovakia. I introduced a resolution urging the United States vigor-
ously to protest, worked to get the administration to issue such condemnation
which President Eisenhower and Henry Cabot Lodge, Jr., United States repre-
sentative to the U. N., did most eloquently, and joined in numerous protests at
meetings and over radio and television. These persecutions ceased soon after
Stalin's death, as suddenly as they began, but Jewish people and all Americans
are not being taken in, knowing that under a Communist regime such persecutions
can start, be stopped suddenly, and start again. The Communist bloc can only
prove its good faith by lowering the Iron Curtain and letting the tens of thousands
of Jews who wish to emigrate, most of them to Israel, to leave the Iron Curtain
countries. The persecutions should certainly have persuaded any remaining
muddle-headed idealists that the Soviet Union and its satellites are just another
totalitarian regime like the Nazis and Fascists.

UNITED NATIONS

The U. N. remains the great world forum where words, not bullets, are ex-
changed, and is therefore mankind's best — perhaps last — hope for peace. The
Soviet Union has made a few conciliatory gestures like not vetoing the election
of a new Secretary-General, Dag Hammarskjold to replace Trygve Lie, and
supi>orting a resolution urging the end of the Korean conflict, but the false
charges of germ warfare continue and there is little diminution except for the
fact that the language is less strong, in the Soviet and satellite charges of war-
mongering.

MtlTTJAL- SECURITY PEOGRAM

The mutual-security program remains the main support of NATO as well as of
military assistance to Indochina, Thailand, Malaya, and other parts of south
and southeast Asia, and to the Philippines, the Middle East, and Latin America,
as well as of the economic aid and technical assistance activities of the United
States. For the fiscal year ending June 30, 1953, appropriations for this pro-
gram totaled $6,031,947,750. The previous administration requested $7,600
million for this program for the fiscal year beginning July 1, 1953. President
Eisenhower's administration cut this by $1,800 million and recommended $5,800
million.

It is proposed that the procurement of military materials for our partners
overseas, known as offshore procurement, will largely replace economic aid
to Europe. The program is expected to concentrate technical assistance in those
areas and on projects where American and other free world business and pri-
vate investment cannot do the job while at the same time a drive is made to
encourage overseas private investment.

As the chairman of the Subcommittee on Economic Policy of the House
Foreign Aifairs Committee, I have been presiding over a series of hearings de-
signed to develop a foreign economic policy for the United States. We have
heard a good deal about the slogan of trade, not aid, and this is indeed sound.
American business can do much to improve standards of living and therefore
the opportunity for freedom in many parts of the free world. But the continuing
high-tariff structure of the United States, the Buy American Act, and the com-
plexities of our customs procedures as well as the outright embargoes and
quotas resiiecting agricultural products figuring into our export and import trade
mean that we shall have to do a lot of straightening out before an appreciable
amount of trade can replace aid. I have introduced legislation to extend the
I'eciprocal trade agreements program for 1 year without amendment, and I
am supporting the President's request for a bipartisan commission to review
our foreign economic policy.

KOREA

Our whole country is deeply grateful that the exchange of sick and wounded
prisoners was consummated effectively and on time — and deeply saddened by the
tragic story of those who perished by primitive maltreatment of POW's and
by the typically Communist holding out of thousands of others. Truce negotia-
tions are now proceeding. A little relaxation of the previous Communist
intransigence is indicated by the concession that prisoners of war who do not
wish to be repatriated to North Korea and Communist China be placed in the

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3097

custody of neutrals uuder agreed-on conditions. All our people are very anxious
for a truce, but they recognize, too, tliat our forces in Korea miTst be protected
and that the U. N. mission to repel aggression such as started the Korean war
and to discourage aggressors is fully justified. Nor do we wish to see a truce
which will only enable the Communists to fortify their position for new aggres-
sive attacks. In fact, a new naked international aggression of the Korea type is
already going on in Laos, gravely threatening Thailand, the rice bowl of south
Asia, as well as Burma, India, and Pakistan. We also do not wish to see long-
drawn-out negotiations such as we had in 1952 in Korea, which only enabled the
Communists to strengthen their position and cause our troops more casualties.
With these cautions in mind, we should go forward to negotiate a truce in the
utmost good faith on our side and to the best of our ability.

EUROPE

There is real disquiet over the continued delay in the approval of the European
Defense Community agreement, to organize an all-European — free Europe — army
for defense, the means by which the German military potential may be utilized
without the danger of a recurrence of German dreams of world domination.
We must continue our elforts to bring about consummation of this plan, with
especial emphasis on the importance in it of the German Federal Republic and
of France.

The situation of France is seriously affected by continuing financial troubles
and governmental instability as well as by the drain of the struggle in Indochina,
estimated to cost the French people over $1 billion a year as well as thousands
of casualties.

The German situation shows elements of assurance as well as elements of
danger. Optimistic evidences are approval of the agreement for indemnification
of Israel and for assistance to persecutees made between Israel and the German
Federal Government and amounting to payments in goods of $822 million over
a period of 12 to 18 years ; approval by the Bundestag, the lower house of the
West German Parliament, of the European Defense Community agreement, and
arrests and prosecution of neo-Nazis by the German Federal Government. On
the other hand, delay on the European Defense Community in German constitu-
tional courts, a renewed interest in the cartelization of industry in West Germany
and proposals pressed on President Eisenhower to again review the sentences
of Nazi war criminals, as well as the grave injustice of returning the Krupp
family's fortune are pessimistic signs. In the field of relations with Germany,
progress was made in the signing of the debt-settlement agreement on February
27 in London which provides for the settlement of Germany's external debt
involving payments of $3,270 million to creditors in some 30 countries. The key
to the German problem still remains the German reaction to the Soviet offers of
unification of East and West Germany which are sure to come. This will be
a great test for us.

NEAR EAST AND NORTH AFRICA — ISRAEL — REFUGEE ASSISTANCE

Recent months have been signalized by the continued failure to make progress
toward peace treaties between Israel and the Arab States, due to the refusal of
the Arab States to negotiate to i-esettle the Palestine Arab refugees in the Arab
States and further efforts by the Arab States to impose economic strangulation
«pon Israel. In March Israel agreed to release $2,800,000 of blocked bank
accounts of Palestine Arab refugees and has again evidenced its intention of
giving full cooperation in their resettlement and of negotiating compensation for
Arab properties abandoned in Israel.

Israel has also made overtures to the Arab States by subscribing to the prin-
ciple of treating the Near East as a regional area and of economic and social
improvement in that area.

Efforts to establish the Middle East command for the defense of this area
have been bogged down due to ultranationalist sentiment in the Arab States.
The current negotiations between Great Britain and Egypt regarding the defense
of the Suez Canal area (not going too well now) and the increasing recognition
of the importance in the defense of the area against external aggression of
Israel's armed forces will determine if there is any hope for improvement this
year.

'- Mutual security appropriations provided $160 million for assistance to refugees
and for economic and technical assistance in the fiscal year ending June 30,
72723— 57— pt. 43 7

3098 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

1953. About the same amount is expected to be provided for the next fiscal year,
except that this time it is likely to be in one fund to be allocated by the President
and to presage a maximum effort to bring about peace in the area without, of
course, impairing the security and independence of any state there. The vital
strategic character of this area, with its vast oil reserves, is well known and it
is essential that important United States attention be fixed on it.

SOUTH AND SOUTHEAST ASIA

I urged consideration of the whole Indochina question in the United Nations
with a view toward assuring that the future of the states of Indochina will be in
the hands of their people and of removing any fears of foreign administration.
It should be our objective in Indochina to get its people to defend their own
freedom as effectively as the ROK divisions are doing in Korea.

Pakistan, the largest IVIoslem state and one of the largest and most important
states in south Asia, has suffered serious drought during 2 years, is short 1,500-
000 tons of wlieat to feed its people, and has applied to the United States for
assistance to acquire 1 million tons. We have a great surplus of wheat in stor-
age and I have offered legislation and have urged that we consider immediate
appropriate assistance to this great friendly people. The new Prime Minister
of Pakistan has expressed gTeat friendship for the United States and a desire
to work with us.

IRELAND

I have again introduced a resolution expressing the sympathy of the United
States for the unification of Ireland through a free opportunity to express the
Irish people's will for union by a plebiscite of the people of all Ireland under
the auspices of a U. N. commission.

PUERTO RICO AND HAWAII

I have had the privilege of a visit to tlie Commonwealth of Puerto Rico in
February last and have been greatly impressed with its progi-ess, its people and
its government. I believe industrialization and more eflicient agriculture will
enable it to turn the corner economically in 5 to 10 years at the present rate of
development.

In addressing the Commonwealth's joint session of the Legislative Assembly
on Lincoln's birthday, I urged that it is a Federal Government problem to assist
those seeking to migrate from the Commonwealth, to go to areas anywhere on
mainland and to seek opportunities of their choice rather than to be com-
pelled to go only to New York City because they lack friends or finances to go
elsewhere in the United States. Of course, as United States citizens they have
full right to seek opportunity wherever they wish throughout the United
States. The Department of Labor of Puerto Rico has done remarkably well in
settlement and employment activities on the mainland and should be encouraged.

I had the opportunity of voting for statehood for Hawaii which passed the
House of Representatives and is now awaiting action in the Senate. Hawaii
has proven its right in World War II to be a State and President Eisenhower
has recommended statehood for Hawaii now.

VETERANS

Congress enacted legislation and it became law authorizing the payment of
family allotments to dependents of enlisted members of the Armed Forces.
The law which was due to expire April 30, 1953, was extended to July 1, 1955,
and a law also was enacted covering similarly dependents of servicemen or
civilians missing in war.

Liberalization of rules for naturalization of any person serving in the Armed
Forces since the start of the Korean war and before July 1, 1955, has passed
the House of Representatives and is pending in the Senate. No specific period
of residence within the United States or any State is required. Just so long
as the service man or woman earns an honorable discharge after completing
service, the naturalization so obtained remains irrevocable.

Cuts made last year in medical staffs and hospital services have been keenly
felt by veterans and their families. I joined in an effort here to restore these
cuts on a supplemental appropriation bill which was for the moment unsuc-
cessful, but I shall certainly keep on trying. There is a great issue with
respect to hospitalization for veterans with non-service-connected disabilities.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3099

Though all agree that these are not to be classed with service-connected dis-
abilities they ought still to be given some consideration on the same theory
that Congress has provided a pension for certain veterans permanently disabled
for non-service causes.

After considerable controversy aboxit the drying up of the sources of mort-
gage money on GI housing loans an increase to 4% percent allowed interest has
now been ordered. The Government must give consideration to means for
keeping interest rates down and mortgage money available through establish-
ing a secondary market for mortgages, if necessary through veterans' direct
loans for the purpose or other means.

RENT CONTROL AND HOUSING

Federal rent control has been extended until July 1, 1953, affecting almost 5
million housing units, about one-third of all rental housing units in the United
States. At the same time there have been warnings from the Congress that it
will not be extended again except for strictly defined defense areas in which
there are actual military establishments — not including defense plants — and
that local communities must arrange for their own rent-control laws. I sup-
ported Federal rent control which is vital under existing housing shortages.
The Federal law, with its 20 percent across-the-board rent increase has made
for higher rentals even in controlled areas than will be made by the new New
York State law.

New York City is not now under Federal rent cuntrel but under State rent
control. The New York State law was renewed for 2 years ending June 30, 1955.
In the course of its renewal, however, an across-the-board 15 percent rent in-
crease was included applicable to 1943 rentals which liad not been increased by
as much as 15 percent since 1943 when rents were first frozen. Though as a
Federal legislator I did not have direct participation in this law which was en-
acted by the New York State Legislature, I nevertheless did all I could to oppose
an across-the-board rent increase, and my opposition was publicly made and
noted in the press.

During the struggle in the New Y'ork Legislature over rent-control reneAval
I introduced a bill to extend Federal rent control to New York if the State did
not act. However, there are various aspects of the New York State law which
require interpretation, notably the provisions entitling tenants to maintenance
of services and to rent decreases if they do not get the services. Also the condi-
tions under which a tenant who has paid some rent increase since 1943 and who
has received some added facilities in return can credit such increase on the 15
percent.

People in my district with rent problems may receive service without charge
from my congressional rent clinics about which information may be obtained by
writing to me.

The Congress is in the midst of a struggle on the Federal publicly assisted
low-rent housing program. The recommendations of the administration that
35,000 units be again authorized for the coming fiscal year — which means 10,000
units for New York City — have been defeated so far. I joined with others of
my colleagues in a spirited fight for these 35,000 units and I hope that they
can be saved. I was successful in receiving assurances which are reflected in the
reported debate that TO.OCK) units already iinder annual contributions contracts
will receive the necessary aiipropriations to enalde them to be built and occupied.
This includes General (Jrant Houses, constituting over 1,900 units, located in
our district.

For a long time I have been concerned witli the grave shortage of housing for
middle-income families earning ■$3,.">(X» to .$4..500 per year who do not qualify for
public housing and who cannot tiftord high-priced newly built private housing.
I have proposed a new plan for middle-income housing in the Middle Income
Housing Act of 19.53. which includes $3 billion at a 4 percent interest rate on
the mortgage debt, long-term mortgage financing, low-cost operation and high
loan values.

Congress passed Public Law 5 benefiting small home owners by adding $.500
million to the FHA's authorization for insiiring home repair and" improvement
loans and credits.

CONSUMER INTERESTS AND PRICES

On the whole there is not too much change since the big rise took place after
June 1950. Prices of items in the cost of living are about twice what they were
in 1939.

3100 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

One of the major probleins here is adequate protection of the consumers'
interests. For that purpose I initiated a movement, joined in by 24 of my col-
leagues of both political parties. Together we introduced legislation seeking the
appointment of a congressional committee on consumers to protect their interests.

We are fixing attention particularly on the farm price support program about
which so much is heard currently.

Farmers' prices and incomes have fallen but still remain over 2^/^ times what
they were in 1939. Government price supports of farm products are very high
and very complete. The worst feature of such high price supports is shown in
the current situation regarding butter, with the Federal Government having
150 million pounds on hand taken under price support programs, while the con-
sumption of butter has dropped by 50 percent due to a great extent to high prices
and to some extent to margarine competition. In addition, consumers have been
much concerned about the embargo on the admission from abroad of cheese,
butter, and other fats and oils. This embargo has complicated our foreign rela-
tions and hurt the American consumer

TIDELAND8

One of our great natural resources is the oil under the sea close to our shores.
This is particularly extensive off the coasts of Florida, Texas, Louisiana, and
California, as well as other Gulf States. Potential reserves are estimated as
high as 16,906 million barrels, with a value of $42,265 million. I joined in the
fight against giving the tidelands to the States and voted against the bill in the
House of Representatives. The measure will probably become law, but I still
believe that all efforts must be made to do all we can to sustain the principle of
the right of the whole Nation to enjoy the benefits of this national resource.
The Siipreme Court has decided just that.

CIVIL RIGHTS

I have introduced omnibus legislation— the first time that this has been done —
to deal with segregation and discrimination in employment, education, housing,
transportation, and public facilities ; to establish a Fair Employment Practices
Commission with enforcement powers ; to provide anti-poll-tax and anti-lynching
laws ; and to eliminate the last vestiges of segregation in the Armed Forces. I
have also sought to strengthen the civil-rights enforcement activities of the
Federal Government.

The dangers to our liberties arising in congressional investigations impose
grave responsibilities upon the Congress. Investigations of higher education
and threatened investigations of religion have properly been of grave concern to
outstanding Americans. I have introduced legislation to establish a code of
rules to protect witnesses and to safeguard investigations against imposition on
the individual. The right of the Congress to investigate is precious to the Amer-
ican people, but if abused its essential worth can be nullified. Accusations
directly or by implication cannot be substituted for proof, and if the rules of
evidence are not followed as they would be in court, charges should not be aired
as facts in the absence of proof.

A considerable storm was created in the Congress early in the session by
evidence of an alleged "understanding" between the New York City Police
Department and the Federal authorities that the FBI would not investigate
directly charges of excessive police action. I participated in a full investigation
of this matter and believe that it was most constructive in making clear that
civil rights must be safeguarded for all — and particularly by the police officers
charged with directly protecting them — against violence.

Announcement has been made that all schools serving families of military
personnel which are operated by the Army will be completely integrated when
the fall term begins.

The Supreme Court is presently considering the Thompson Restaurant case
in which the Department of Justice is seeking to bring about enforcement of
laws, dormant since the 1870's, the effect of which would be to eliminate dis-
crimination against the serving of Negro patrons in restaurants in the District
of Columbia. I have called on the District of Columbia Commissioners to act to
eliminate all elements of District of Columbia segregation.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3101

IMMIGRATION

At the very opening of the Congress I introduced a resolution calling for a
rewriting of the McCarran Innnigration Act in accordance with the very words
used by the President in his campaign speeches. The President has again
requested recently that the Congress rewrite the law to eliminate injustices,
and I shall do everything I can to bring this about. There is certainly some
ground for the expectation that the worst features of the act will be changed
before long.

The dramatic escapes from behind the Iron Curtain, and United States par-
ticipation in the deliberations of PICME, an international organization seeking
to deal with the burdens upon free Europe of an excess of workers, have now
produced recommendations by the President for the admission of 240,000 of these
refugees, escapees, and surplus workers into the United States as special immi-
grants in the next 2 years. This is in reality a continuation of the displaced-
persons program which began in 1948 and ended in 1951 and was such an out-
standing success. I have joined with Senators Ferguson, Ives, Hendrickson, and
Watkins in sponsoring legislation for this emergency immigration program.

SOCIAL SECURITY, PENSIONS, AND TAX EXEMPTIONS

Early this session I introduced legislation to eliminate entirely the present
earnings limitation of $75 monthly placed upon recipients of old-age social-
security benefits. There seems little justification for the imposition of a ceiling
on the earnings of those who wish to continue in gainful employment after 65,
considering the $48 monthly average payments now being received.

I have reintroduced my bills to exempt from income tax the first $2,000 of
pensions received by retired Federal, State, and local employees as well as my
measure to give to the physically handicapped the same additional $600 income-
tax exemption now granted the blind.

I have also introduced this year legislation affording income-tax relief to an
estimated 9 million working mothers. My bill would permit a working mother
to deduct from her gross income, in computing her income tax, the necessary
expenses incurred to care for her child or children under 16 while she is at work.

Hearings have already been held on the elimination of the 20-percent excise
tax imposed on motion-picture admissions, but no decision has yet been reached.

BUDGET AND TAXES

The best opinion is that tax reduction and budget reduction should go together
and that we cannot allow huge deficits which only go to increase the public debt —
now at $1,662 per capita and to make our burdens permanent. The previous
administration recommended a budget of $78,600 million. This was calculated
to result in a deficit of $11 billion. The present administration expects to
bring this budget down by some $8,200 million. Actual expenditures estimated
at $74,100 million and income at $67,500 million are estimated to leave a cash
deficit of $6,600 million. Major cuts will be in defense expenditures for which
the request of the previous administration was $46,300 million for the ensuing
fiscal year and in foreign aid.

In the perfectly proper efforts for economy we must be sure that we are not
getting false economy or perpetrating injustices. Aside from defense, great
savings are possible in agriculture conservation payments now costing $250
million a year and in agricultural price supports for which we appropriate about
$1 billion a year. Pork-barrel projects for rivers and harbors can be sharply
reduced without disturbing flood control, reclamation projects, and necessary
power extensions. On the other hand, the denial of Federal aid to schools and
school construction. Federal aid to deserving college students, drastic cuts in
Federal publicly-assisted low-rent housing and similar savings cannot be justified.
There are, also, still loopholes and inequities in the income and excise tax
structure which urgently need righting.

The excess profits tax on corporations expires on July 1, and the 10 percent
increase in income tax on individuals expires on December 31. I believe that we
cannot reduce taxation either by expiration of the law or otherwise until
it is clear that adequate budgetary reductions can be made. I believe also that
elimination of the excess profits tax and reduction of the personal income tax
should move together when the time comes.

3102 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

POST OFFICE AND CIVIL SERVICE

I have introduced legislation to restore the postal services, including 2-a-day
deliveries in residential areas, which were drastically curtailed by the Post-
master General's order of April 18, 1950. The Postmaster General is presently
conducting nationwide studies on postal services and has already restored some
of the cuts previously made. Congressional committees are also active.

I have also reintroduced my measure calling for merit promotions in the Post
Office Department.

I am supporting legislation to make postal workers' salaries compatible with
the requirements of the increased cost of living and with what they would earn
in private business.

The House passed legislation barring high-ranking Government officials from
drawing large lump-sum payments for accrued annual leave, payments which
have been as high as $10,000 in individual cases. Hearings have begun on the
entire questicm of leave for civil-service employees, including amendment of the
Thomas rider by which a Federal worker can lose earned leave if he does not
use it within a specified time.

MISCELLANEOUS ISSUES

I have again introduced a resolution calling for an investigation by the Con-
gress of laws regulating the interstate operation of motor vehicles and motor
carriers, auto liability insurance rates, safety and road construction and meas-
ures which the Federal Government can take in these matters. The latest
figures sliow 38,000 fatalities and 1,330,000 personal injuries in the United States
last year due to auto accidents, far more than our fatalities in Korea. This
bill is receiving increasing public support.

I have again introduced the bill to allow important congressional sessions
to be televised and broadcast. The demand for this opening up of the public
galleries of the Congress into 15 million living rooms in the country is bound
to become well-nigh irresistible.

I am sponsoring again a bill to prohibit discrimination in employment on ac-
count of age. This bill has helped fix attention on a major pi'oblem in American
life — the population's age increase which will almost double in 25 years the num-
ber of those over 65, many still anxious to continue productive employment.

I have introduced legislation to provide for an Office of Government Investi-
gation to maintain a continuing watchfulness against corruption in all Govern-
ment departments.

There has been established as a department of the executive branch the
Department of Health, Education, and Welfare, a proposal which I supported.

NEW YORK CITY

Out of a sen.'ie of outrage and humiliation at the deplorable condition to
which New York City has been brought by uninspired and machine politics ad-
ministrations since 1945, I announced my availability as a candidate for mayor
if desired b.v the good government forces. I wish to emphasize here that such
contribution as I can make in bringing about a new administration of New York
dedicated to efficient and honorable service to New Yorkers will be made only
as consistent with my responsibilities in the Congress and to the national issues
v.'hich affect so vitally the people of my district. New York is the queen of
America's — indeed the world's — cities and deserves the pride, the affection, and
the close cooperation of the whole Nation; it is in this spirit that I may be
able to contribute to the solution of its problems.

[Congressional Record. August 1, 1953]

Eighty-third Congress, First Session — Final Report

Extension of remarks of Hon. Jacob K. Javits, of New York, in the House of

Representatives

Mr. Javits. Mr. Speaker, as the 1st session of the 83d Congress closes, marking
a milestone in the history of our country — the first Republican administration
to hold office nationally for 20 years — it is fair to say that for an adequate
appraisal the full record will have to be judged, including the work of this Con-
gress, at the end of the second session.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3103

KOREA

The overshadowiug event of recent weeks was the signing of a truce in Korea.
The truce agreement settles none of the political questions which first brought on
the Korean war, the principal issue being the effort to make all Korea a Commu-
nist satellite. It provides for a cease-flre, for an exchange of prisoners, and the
supervision of this cease-fire. The fundamental issues are to be settled by a
political conference to start before October 27. There is no question about the
participation in this conference of the United States and the other members of
the United Nations who are represented by fighting troops in Korea, nor about
the inclusion of the Republic of Korea (free South Korea) and the other bel-
ligerents. North Korea, and whether directly or indirectly, Communist China and
the Soviet Union.

The truce agreement represents a victory for the United Nations and only its
enemies are likely to consider it a defeat or even a stalemate. When Communist
aggressors are stopped it is a victory for the free peoples. It is of tremendous
significance to the peace of the world, for by having acted against Communist
aggression in Korea we have a real chance to avoid world war III.

The United States should not permit its policy or its commitment to undertake
armed defense against aggression to mislead it into endeavoring to unify Korea
by force. It may be necessary to endure the present stalemate for some time
until fundamental social and economic forces bring about Korea's unification.
We should insist on an absolute and complete repatriation of all our prisoners
who wish to be repatriated. We should participate actively in the reconstruction
of South Korea whose people have suffered so much.

Naturally the main defense of South Korea should be in the hands of its own
forces and they should be trained and equipped for that purpose. But United
Nations forces will have to be there for a considerable time to be sure that the
United Nations authority with respect to the unification of Korea is enforced.
The United States must make a great effort to see that there is widespread sharing
by all the United Nations of these military responsibilities.

PROSPECTS FOB PEACE

Just as the death of Stalin marked the end of one era in the prospects for
peace, the purge by Malenkov, the new boss of the Soviet Union, of Beria, his
No. 2 man, may mark the opening of another era. The Russians have accom-
panied this action by widespread propaganda in their own country about supply-
ing more butter than guns from their own productive resources, and have adopted
ostensibly a more conciliatory note in international affairs.

The Soviet Union has announced, however — and this has been aflSrmed by the
Atomic Energy Commission in our country — that they have the hydrogen bomb,
the most devastating weapon known to man. There is also the matter of Amer-
ican aircraft flying over a neutral sea being shot down by Russian planes in the
Far East.

The policy of the Soviet Union has certainly given ample notice that it is
dedicated to the world triumph of conmiunism. It is inherent in the Couiniunist
philosophy that this be accomplished by internal revolution, if possible, (n- by
world revolution — which means armed aggression — as the result of widespread
war.

It would be fatal for the free world to let down its guard or to neglect its
preparations until we see practical deeds on the part of the Soviet Union seeking
an end to the international tension it has created. Deeds include cooperation
in the political conference on Korea, on free elections to unify Germany without
at the same time stripping Germany of the right to participate in the defense
of the free world, a peace treaty for Austria, and the general lessening of Soviet
obstruction by veto in the efforts at disarmament and collective security in
which the United States is taking the leadership in the United Nations.

It must never be forgotten that the Soviet Union and its satellites constitute
a fantatical Communist group with iron control over 800 million people in Europe
and Asia.

President Eisenhower spelled out, in a speech before the American Society of
Newspaper Editors, just how permanent peace could be achieved and the whole
world greatly benefited.

3104 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

UNITED NATIONS

I have vigorously supported iu the Congress measures having to do with
greater cooperation by the United States in the United Nations. These include
the comprehensive resolution coiuaiitting the United States, in company with
other members of the U. N., to utilize a part of tlie great savings in defense
expenditures which can be effected through universal disarmament for the
purpose of world reconstruction and development, economically and socially ;
second, the maintenance of the United Nations Children's Fund (UNICEF), as
well as the work of other specialized United Nations agencies in food and
agriculture, labor, education, technical assistance, and cultural and scientific
exchange ; third, helping with the rehabilitation of Korea, the care of the Pales-
tine Arab refugees, and peace in the Near East.

I introduced a resolution for a Pacific pact to provide for the mutual security
of free Asia, the Pacific Ocean area, and Oceania through a regional organiza-
tion within the framework of the United Nations Charter and for participation
by the United States therein.

MUTUAL SECURITY PEOGEAM

A significant victory in the struggle for international cooperation is contained
in this year's mutual-security program. For the fiscal year ending June 30,
19.34, appropriations for this program have been made totaling $4,531,507,000.
This is a reduction of over .$3 billion from the amount requested by the previous
administration, and of $1,300,000,000 from the amount recommended by this
administration, but despite deficiencies, it permits us to carry on the mutual-
security program.

It includes, to support the anti-Communist struggle in Indochina, a special
fund of $400 million : $135 million in special economic assistance for the Near
East, largely for Israel and the Arab States, and to aid in the overall economic
pr )grams of India and Pakistan, now the greatest aggregations of the free
peoples in Asia, $75 million.

FOEEIGN ECONOMIC POLICY

One of the major achievements of this session of the Congress was the authori-
zation of a Presidential-congressional commission to study the foreign economic
policy of the United States aud to make recoiiuiiemlations by March next as
to v\^hat should be the foreign economic policy of the country. The reciprocal
trade-aureeinents program was finally renewed for 1 year, based upon the ex-
pectation of the study by this commission. An effort to include protectionist
[u-ovisions, like limiting the amount of fuel oil which could be imported into
this country, was defeated.

The aggregate of the exports and imports of the United States today are
something around $25 billion a year. Over 4 million American workers are
estimated to be benefited by the export trade of the United States. Some indus-
tries legitimately fear imports. But workers involved in these industries are
only 10 to 15 percent of those who benefit from the export industries. We
must find a way to enable industries which have benefited from tariff pro-
tection to make the transition to more open trade, but we must not permit them
to jeopardize lower costs and a higher standard of living for consumers, the
success of the "trade, not aid" policy of the administration, and the expansion
of world trade upon which the success of the United States and the whole free
world must ultimately be based.

EUROPE

Financial troubles and labor troubles, as well as the grave strain of the
struggle in Indochina and France's troubles in North Africa are bedeviling the
French iieople who should, by location and natural talent, be the leaders of the
free peoples of Europe. These difficulties interfere seriously with the consum-
mation of the European Defense Community agreement, the only practicable
means by which the German military potential may be utilized without the
danger of a recurrence of the German dreams of world domination. They are
.•ilso interfering very seriously with continuing progress toward the economic
unification of free Europe so auspiciously begun with the Schuman plan now in
operation for the pooling of the coal and iron resources of France, Germany,
Belgium, Holland, Luxembourg, and Italy.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3105

It is our responsibility to be of the maximum sympathetic help which we
can to France in the present situation. Also to follow our traditional allegiance
to freedom for all colonial peoples and the right of self-government at the
earliest possible time at which they are capable of it.

A resolution passed by the Congress, of which I was a cosponsor, declared the
vigorous condenuiation by the American people of the persecutions of .Jews, Cath-
olics, and Protestants behind the Iron Curtain and of the inhuman and brutal
methods of suppression taken against workers in East Germany and against
millions of slave laborers behind the Iron Curtain, despite the vaunted claims
of the C^^mmunists to be the friends of workers.

ADMINISTKATION FOREIGN FOLICY NEAR EAST AND ISRAEL PAKISTAN

The confidence vested by the Congress in the administration by a grant of a
$135 million fund for special economic assistance to the Near East area, includ-
ing Israel, places special responsibilities upon the administration with respect
to this area. I took a very active part in this whole effort and shall make it my
ob.iective to aid in every way possible to see that the administration policy is the
most conducive to peace between Israel and the Arab States, resettlement of
the Palestine Arab refugees, and area development.

The Congress voted 1 million tons of wheat to help Pakistan with its famine
problem, a measure of which I was an original proponent and sponsor. Con-
gress gave the President authority to use farm surpluses to the extent of $100
million to alleviate hunger or similar suffering in earthquakes and similar
catastrophes overseas.

There is a good deal of controversy in the Congress about the Bricker amend-
ment to restrict the power of the Executive to act in foreign policy matters
affecting the United States. It would be a mistake to overturn the time-honored
and thoroughly interpreted practices of the United States on treaties.

HAWAII, ALASKA, PUERTO RICO

I supported actively the fight for Hawaiian statehood in the bill which passed
the House of Ptepresentatives. It is vital that approval be given to this measure
in the Senate in the next session of this Congress. The same is true of state-
hood for Alaska. In the modern jet and atomic world we must break the bond
which confines statehood only to the continental United States.

The Commonwealth of Puerto Rico is making great strides. It is entitled to
aid in developing agriculture and industry, and aid to train and educate its people
so that they may seek opportunities anywhere with full freedom of choice and
without being under the lash of any necessity to leave Puerto Rico.

RENT CONTROL AND HOUSING

Federal rent control ended as of July 1, 1953, in all but strictly defined critical
defense areas where it has been extended to April 30, 1954. As a result the
number of housing units affected by P^ederal rent control has decreased from 5
million to 90,000. Rent control is accordingly now left to the States and the
municipalities. There are relatively few States and communities which have
their own rent-control system. New York and New Jersey are distinct excep-
tions. With the Federal law removed, for all practical purposes from New York
as even a possibility, the State law, despite its faults, which require corrective
action, as described in my first report of this session, is as favorable a law for
tenants as exists in the counti'y.

People in my district with rent problems may continue to receive service with-
out charge from my congressional rent clinics about which information may be
obtained by writing to me.

The struggle with respect to the Federal publicly assisted low-rent housing
program has finally been resolved and I regret to state unfavorably to an ade-
quate Federal public housing program. The administration asked that 35,000
units be authorized, but after a considerable struggle, only 20,000 units were
authorized and these to complete annual contributions contracts already made
and practically providing for liquidation of the Federal public housing program.
I had obtained assurance in the course of the debate with respect to the ful-
fillment of these annual contributions contracts, which include General Grant
Houses located in our district, constituting over 1,900 units. I am now con-
vinced that this project will be built though it will probably be slowed up by

72723 — 57 — pt. 43 8

3106 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

a year or two. The Federal public housing program is badly needed, and I will
continue to work hard for it.

In another significant housing action, the President was given authority to
lower downpayment requirements on properties covered by FHA-insured mort-
gages to as low as 5 percent. An increase of $1,500,000,000 in the FHA funds for
mortgage insurance on new private homes was authorized and the Congress
provided an additional $100 million for direct home loans to veterans, extending
that program for 1 year.

There is continued failure to make a major effort on behalf of middle-income
families, who do not qualify for public housing and who cannot afford high-
priced newly built private housing. A housing program for middle-income
families for which I have introduced the IMiddle Income Housing Act of 1953 is
urgently needed.

CONSUMER INTERESTS AND PRICES

Practically all controls on wages and prices have been lifted. About only the
authority to allocate and give priorities over scarce defense materials for defense
remains. To replace the controls system, Congress has set up a Small Business
Administration with a lending authority of $275 million to make loans up to
$150,000 each to small companies wiio cannot obtain private credit.

The liquidation of the Reconstruction Finance Corporation has been provided
for as of June 30, 1954. I opposed this liquidation because I believe this is a
very important standby agency for the Government to deal with questions of
depression and recession.

The Government now has about $3,250 million invested in farm products as
a result of the high fixed farm price supports and spends $125 million yearly
for their storage alone. The butter support program continues to be scandalous
with about 270 million pounds on hand taken under these price support pro-
grams while the consumption of butter has dropped 50 percent. I have de-
manded that this butter be made available for relief purposes and to the public
at lower prices.

The formulation of a farm price-support program will be a major issue before
the next session of the Congress. I shall use all my efforts to see that the
present high fixed farm price-support program is abandoned in favor of a flexible
program which will give the farmer reasonable assurance that he will not be
subjected to economic disaster but also will not tax the consumer as it does
today, by the taxes needed to support the program and by high food prices.

The cost of living is inching upward again with the Consumers' Price Index
for June showing foods at 113.7 (1947-1949=100), the highest in 1953. The
Consumers' Price Index on all items is 114.5, an all-time high. I am continuing
vigorous efforts for the establishment of a joint congressional committee to
especially protect the consumers' interests.

NATURAL AND OTHER RESOURCES

I voted against the bill dealing with the Federal Government's administration
to. the off-shore petroleum resources beyond the tidelands which were ceded to
the States — a measure I also opposed — because the whole of the tidelands re-
sources should be the property of all the people of the United States. I supported
the so-called Hill amendment to give a substantial portion of the avails of these
developments for education.

Efforts are also being made in the Congress to invade the rights of the people
in forest and grazing lands, especially in the western areas of the country, and
these public lands must be protected.

I voted and fought against the bill to grant the right to develop the power of
Niagara Falls to private companies. This bill was opposed by Governor Dewey
and the State of New York which favored State operation. This fundamental
re.source belongs to all the people and should continue to be owned and developed
for their maximum benefit. The measure is now pending in the Senate, where
great opposition to it has already arisen.

I supix)rted the disposition by the Federal Government of the plants which it
owned, acquired under wartime necessities, for the production of artificial rub-
l)er. The legislation contains very definite safeguards to see that the Govern-
ment gets full value, that the plants are put to productive use, and that monop-
oly is not encouraged by their disposition.

The basic principle, as I see it, therefore, is that in power, water, irrigation,
reclamation, and similar developments the Government should continue to own

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3107

the fundamental resource, giving private interests full opportunity to contract
fairly with the Government to use its facilities. Where the Government owns
something like a factory, which is not part of the operating defense establish-
ment, which can legitimately and without endangering the national interests
be owned and operated privately, the Government should make that possible.

CIVIL RIGHTS

The controversy with respect to the handling of congressional investigations
continued during the latter part of the first session.

I joined with another one of my colleagues, the Honorable Kenneth B. Keating
of New York, in a special drive to get the House of Representatives to adopt
rules of procedure for all its investigating committees. This reform is one
of the most effective that can be made by the Congress itself. The power to
investigate is vital to Congress, but it is entirely practicable to safeguard indi-
vidual rights in the process.

I introduced the District of Columbia Anti-Segregation Act specifying in de-
tail all the laws which must be repealed in order to eliminate all vestiges of
discrimination and segregation in the District of Columbia. I shall continue
unremittingly to fight against segregation and discrimination in Washington, an
issue to which this administration is pledged.

The Thon^3Son Restaurant case was decided affirmatively by the Supreme
Court and this has struck a real blow against the practice of discriminating
against serving Negro patrons in restaurants in the District of Columbia.

It seems clear now that the President will appoint an antibias commission
effectively to see that discrimination and segregation on grounds of race, creed,
or color do not occur in ajiy businesses or industries which have the benefit of
Federal contracts.

This struggle against discrimination and segregation is a struggle for the soul
of our country and for the validation of the Constitution and it is upon these
principles that I have and shall continue actively to engage in it.

IMMIGRATION

Determined administration leadership produced the Special Migration Act of
1953. Under this legislation the United States takes its fair share of urgent im-
migration as it did under the displaced persons law, in order to induce other
countries to also take their fair share and thus deal with the whole problem.
The law provides for the admission of 214,000 escapees from behind the Iron
Curtain, refugees and orphans. Of these, 45,000 are to be from Italy, 55,000
from West Germany, Berlin, and Austria, 15,000 from Holland, and 15,000 from
Greece. In addition certain relatives of persons in the United States to the ex-
tent of 15,000 from Italy, 2,000 from Holland, and 2,000 from Greece are also to
be granted admission on a nonquota basis. Also 9,000 visas are allowed for
Asiatic and Arab refugees, 4,000 visas are allowed for children under 10 who are
to be adopted by United States citizens, and 5,000 visas are allowed to regularize
the immigration status of aliens legally within the United States who cannot
return to their place of origin due to fear of persecution on political or religious
grounds. Housing and a job must be assured to every alien coming in under
this special law without displacing any other American.

There is also a real chance for modernization of general immigration policy,
and the urgently needed rewriting of the McCarran Immigration Act to deal with
the discriminations and injustices in it. I have already introduced such a
measure in accordance with the President's campaign statements.

Social security, pensions, and tax exemptions

Congress is considering a revision of the revenue laws. I have joined with
others of my colleagues in pressing action to remove the present earnings limita-
tion of $75 monthly placed upon the recipients of old-age social security benefits,
the exemption from income tax of the first $2,000 of pensions received by re-
tired Government or private employees as well as my measure to give to the
physically handicapped the same additional $600 income exemption now granted
the blind and my measure to afford income tax relief to an estimated 9,000.000
working mothers for income up to $1,500 a year utilized by them as necessary
expenses in taking care of their children under 16 while at work. There is con-
siderable support for the last of these measures.

3108 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

A bill passed the Congress to eliminate the 20 percent excise tax imposed on
motion-picture admissions, but failed by virtue of a Presidential veto. A national
sales tax is regressive and our main dependence for revenue must continue to be
placed upon the individual and corporate graduated income taxes. Accordingly
I shall support the removal of excise taxes upon necessities while supporting
excise taxes upon high-priced and luxury items.

The President sent Congress a message urging the extension of social security
to 10,500,000 persons, including self-employed farmers, additional farm and
domestic workers, doctors, dentists, lawyers, architects, accountants and other
professional people, many State and local employees, clergymen, and other
smaller groups. I shall support these efforts. The extension of the social secu-
rity system is one of the strongest bases for the peace of mind of our people.

BUDGET AND TAXES

The Congress appropriated $64 billion as against the recommendations of the
Truman administration of $78.6 billion, a cut of about $14 billion, and a cut
also of $4 billion below the recommendations of President Eisenhower's adminis-
tration. The major cut was made in defense expenditures and the principal
controversy revolved around a cut of about $5 billion in appropriations for the
Air Force. It was eminently right to rely upon President Eisenhower's assurance
that the military forces, including the Air Force, were being dealt with entirely
consistent with the national security. Because of expenditures resulting from
previous appropriations the Government operated at a deficit of over $9 billion in
1952-53, and the deficit for the next fiscal year is estimated at slightly less than
$4 billion.

I voted to support the renewal of the excess-profits tax on corporations until
the end of this year. A reduction of about 10 percent in individual income taxes
is due to take effect January 1, 1954. Also a reduction of wartime increases in
excise taxes is due to take place April 1, 1954. All these will reduce tax income
by an estimated $5.5 billion to $6.5 billion per year when fully effective.

The position of the United States in the world and insuring our own and the
free world's security against the Communist threat require that we must be
ready to support with money as well as with ideas, morality, and men the security
and national interest of the people of the United States. It is for this reason
that I voted to raise the debt limit from the present $275 billion to $290 billion
which was needed to realistically meet the fiscal situation in our country.

In the perfectly proper efforts for economy we must always be sure that we
are not getting false economy. Even this year we appropriated $150 million
for soil-conservation payments for practices which farmers would do for them-
selves anyhow. We have $3,250 million tied up in a farm-price-supDort program.
Pork-barrel projects for rivers and harbors are still taking too much. On the
other band big cuts in the Federal publicly assisted low-rent housing program
and no appropriation for Federal aid to schools and school construction or
Federal aid to deserving college students can hardly be justified under present
conditions, nor can we short-change flood control, reclamation projects and neces-
sary power extensions to realize the full wealth of our country.

MILITARY SERVICE

The authority to induct physicians and dentists into the armed services was
extended to July 1, 1955. The new law corrected many inequities that had pre-
viously existed in the doctors draft law by crediting past service, permitting
commissions to be terminated, providing for the proper grade of officers commis-
sioned as physicians, dentists, or veterinarians, and permitting their release in
accordance with amounts of previous service.

POST OFFICE AND CIVIL SERVICE

I have continued my fight to restore the postal services, including two-a-day
deliveries in residential areas, and there have been some results in the improve-
ment of hours at local post offices, in mail deliveries, and similar measures.

I urged the appropriate committee of the House of Representatives to hold
prompt hearings upon legislation to make postal workers' salaries compatible
with the requirements of the increased cost of living and with what they would
earn in private business, also upon my measure calling for merit promotions
I also intend to support increases in postal rates, especially in second- and
third-class mail where bulk mailers and periodicals are getting the benefits while

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3109

the taxpaj^ers pay heavy deficits incurred iu the Post OflSce and postal workers
receive less than their due.

MISCELLANEOUS ISSUES

Extensive reorganization of Government departments has taken place, and
I have generally supported these efforts. There has been established a Foreign
Operations Administration to take under one heading all foreign aid operations
of the Government and an International Information Administration to take
over the Voice of America and other information and education functions.

I introduced a bill to establish a United States Arts Foundation to stimu-
late and encourage theater, music, and the associated live arts.

Amendment of the Taft-Hartley Labor Management Act will come up in
1954. I was opposed to and voted against this act on the ground that it
was considered punitive by the great trade-union movement in the United
States having over 16 million members. In cooperation with the trade unions I
have already offered amendments — on the definition of agency — and will co-
operate in the liberalization of this law.

I joined with my colleagues in introducing legislation to provide for a ter-
centenary coin to commemorate the 300th anniversary of New York City. I
sponsored also a new law to signalize the 200th anniversary of the founding of
Columbia University in our district,

NEW YORK CITT

Out of a sense of duty to our city, because of the dreadful situation to which
our city has been brought, I had announced my availability as a candidate
for mayor if desired by the good government forces. I did my utmost to bring
about such a coalition, and as this proved impossible, I am not a candidate in the
coming municipal elections. I wish to thank so many of the citizens of our
district who evidenced their support of the position I took in behalf of good gov-
ernment for our city. What we did has already had an effect in concentrating
attention upon the real issues before the people of the city. My basic activity re-
specting the city will be to do all I can to see that New York deserves and re-
ceives the affection and the close cooperation of the people of our State and
Nation as the queen of cities, and the home of the U. N., the capital of the free
world.

[Congressional Record, May 5, 1954]

Eighty-third Congress, Second Session, First Report

Speech of Hon. Jacob K. Javits, of New York, in the House of Representatives

Mr. Speaker, it is widely recognized that the record of this Congress remains
to be written within the coming few mouths. Momentous issues are before the
country and the world for consideration, and from these governmental policies
are developing, and specific legislation by the Congress is in the process of being
written.

PROSPECTS FOR PEACE

The dreadful implications of the H-bomb, which we are informed is so power-
ful that one bomb could wipe out most of New York City, are beginning to have a
deep effect upon the thinking of our people. The Communist bloc, under its new
leader, Malenkov, has advised the world that it is ready to retaliate with similar
weapons should there be any World War III. The President, in his historic
declaration before the United Nations asking the Soviet Union to discuss the
pooling of means for the peaceful development of atomic energy, has set the tone
for the whole free world. Despite the turmoil in which the Communist bloc is
keeping the whole world through its aggression and subversion, it is still neces-
sai'y to explore every avenue for agreement upon the control of weapons of mass
destruction and for the peaceful uses of atomic ener.gy.

In addition, we must constantly strive, as we did in the I'ecent four-power
negotiations at Berlin and in the conference at Geneva, to deal with the problems
of the Asian conflict to find some grounds for agreement, if at all possible, w^ith
the Communist bloc and ways and means for relieving international tension.
The willingness to talk and negotiate does not imply appeasement or a Munich,
which, it must be clear, could only lead more certainly to another world war.

3110 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

INDOCHINA AND THE FAR EAST

We are firmly committed to bringing about freedom and independence for the
Indochinese people. The struggle in Indochina may well prove to be a struggle
for the whole of the 600 millon people of south and southeast Asia, which includes
also Thailand, Malaya, Burma, India, Pakistan, and Indonesia, and which will
have the most profound effect upon the future of Japan. Formosa, and the Philip-
pines. It must be constantly emphasized that should the Communists be suc-
cessful in taking this whole area they would for the first time have a greater
concentration of population in the Communist bloc tlian there is in the free
world. The grave dangers to our national security in such an eventuality would
present a crisis equaled only by the sneak attack on Pearl Harbor. We must
recognize at the same time that it is too late for the Indochinese people standing
alone to be able to muster an adequate defense against Communist aggression
even though we were successful in bringing about their complete freedom and
independence at this time. I believe that the realistic lines of our policy must
be to see that freedom and complete independence for the people of Indochina is
trusteed either with the United Nations or, if the Russians make that impossible,
with an international group of nations so that the people are sure they will get it ;
second, that we seek first through the United Nations and, if the Russians make
that impossible, then by international action the assumption of the responsibility
for the defense of this whole area by substantially the whole free world in which
we will do our share.

France should be encouraged to continue to carry a large share of the
burden in Indochina as her situation there is analogous to the situation which
we faced as having the preponderant free world forces outside of the indige-
nous forces in Korea. This can be done by assuring her of massive material and
technical assistance which we are indeed already giving — an estimated $800
million for the next fiscal year as part of the mutual-security program — and
also of the security and defense of Western Europe. This the President has
done with the assurance to France that if she ratifies the proposal for the
European Defense Community- — European army — United States forces will
maintain their position in assuring the security of Western Euroi)e until major
threats to that security have been dispelled. Coupling these actions with
every effort which we are making as at Geneva to bring about a conclusion of
hostilities in Indochina, consistent with the security of the free world, this is as
constructive a policy as we could pursue in that area to avoid for ourselves the
suffering of another Korea and for the world another world war.

It is well nigh vmiversal opinion in our country that Communist China can-
not be permitted to shoot its way into the United Nations as it tried to do in
Korea and as it is again trying to do in Indochina. We have every reason
to believe that over 900 American soldiers taken prisoner in Korea are still
being held by the Communist Chinese without any disclosure of their where-
abouts or the fact that they are being held and that a reported 32 American
civilians are languishing in Communist jails in China or their equivalent with
an absolute refusal to return them to us though they have committed no crime
of which the civilized world takes cognizance.

Another development of the momentous character is the step initiated by
our Government to bring about a Pacific treaty organization for the self-help
in their own security of the people of south and southeast Asia and the Pacific.
At present it is contemplated that 10 nations shall be in this organization
and it is not expected that India, Burma, and Indonesia will participate. Yet
they belong in such an organization in their own interest as do all the coun-
tries in this area and our policy must be directed toward showing them that this
is the right course for them in their own interest and in the interest of the
whole free world.

FOKEIGN ECONOSIIC POLICY

The report of the Presidential Commission on the Foreign Economic Policy
of the United States has now come in and the struggle in the Congress to im-
plement this policy will shortly ensue. The Commission recommended that the
i-eciprocal trade agreements program he renewed for 3 years with the right of
the President to reduce tariffs on a reciprocal basis .5 percent a year for 3 years
or a total of 1.5 percent on active items of United States imports. The report
also made various other recommendations including recommendations for en-
couraging overseas private investment which is very important to our foreign
policy and for stimulating international travel. The report also supported the

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3111

views of the admiuistiatiDU with regard to trade in nonstrategic materials be-
tween the free world and the Communist bloc.

I have introduced legislation to stimulate the development of international
travel and have conducted extensive hearings on this subject. It has capabili-
ties for implementing the slogan of "trade — not aid" to the extent of $1,300
million in trade to the other free peoples which will have a very material effect
on American prosperity through building up their capability to buy from us.

As the chairman of the Subcommittee on Foreign Economic Policy I also con-
ducted a series of hearings on East-West trade. They demonstrated that such
trade in nonstrategic goods is not a threat to our security ; the free world
gets more out of it than it gives to the Communist world because it enables
especially the nations of Western Europe to get foodstuffs and raw materials
which they urgently require and reduces the need for United States foreign aid
which would otherwise be much greater. Despite all the talk about trade with
the Communist bloc — including Communist China — it is not very large, consti-
tuting only 3.2 percent of the exports and 3.4 percent of the imports of Western
Europe.

FOREIGN POLICY IN EUROPE

The principal foreign policy issue in Europe and our No. 1 objective continues
to be the European Defense Community. This is the project for the six-nation
European army which is to become part of the North Atlantic Treaty Organiza-
tion— NATO. It is the best means which has been devised for utilizing the
defense potential of Western Germany without incurring the danger of renewal
of German militarism through making this defense potential part of an all-Euro-
pean army. This project has now been approved by West Germany, Belgium,
Holland, and Luxembourg, and awaits only enactment by France and Italy.
The principal sticking point is France, which is very fearful of German domi-
nance in the European Defense Community. The British have endeavored to
reassure the French by undertaking extensive commitments for the coordination
of the British military effort with that of the proposed European Defense Com-
munity. Our country has taken a great step in this regard by its commitments
to maintain forces in Western Europe, too.

It is no small element in the need for approval of the European Defense Com-
munity that there are constant reminders of the Nazi days in West Germany
which indicate how very urgent it is that Germany be cemented into free Europe.
Among these are the recent appointment of a former Nazi Party member as the
observer for West Germany at the United Nations, an appointment which I
strongly protested ; the reported agreement to grant further amnesty to major
war criminals and the continued unsatisfactory nature of the arrangements for
restitution and compensation of persecutees and refugees from the Nazi terror,
obligations which are those of the present German Federal Government.

ISRAEL AND THE NEAR EAST

The situation in the Near East is critical and explosive. With serious border
incidents between Israel and the Arab States of almost daily occurrence, the
intransigent refusal of the Arab States even to meet to discuss peace or enfoi'ce-
ment of the armistice terms with Israel, and the continued boycott and blockade
of Israel by the Arab States all contribute to the serious situation. Our Gov-
ernment has now announced that it is going to furnish arms to one of the Arab
States — Iraq. This extremely serious decision immediately raises the question of
how our Government intends to see that these arms are not used for aggression
either by Iraq directly or through some other Arab State against Israel, with
which Iraq is technically at war and to which all the members of the Arab
League, of which Iraq is a member, are extremely hostile. I have joined with 29
other Representatives and 6 Senators in the most urgent protest to the State
Department against supplying arms to any Arab State. In addition, the grave
problem of resettlement of the Palestine-Arab refugees within the Arab countries
continues to be a nettling problem urgently requiring permanent solution.

Our Government has taken a real step forward in the security and defense of
the critical Middle East area through our undertaking to supply arms aid to
Pakistan and the conclusion of an agreement for the defense of this area between
Turkey and Pakistan. This only emphasizes the inadvisability and danger of
furnishing arms to Iraq or any other Arab State.

3112 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

OTHER FOREIGN POLICY DEVELOPMENTS

The Inter-American Conference at Caracas again revealed the essential unity
of the Americas except for the two extremes of Argentina on the right and
Guatemala on the left which continue to seek to bedevil free institutions in this
hemisphere.

I have introduced legislation to establish a Foreign Service Academy to train
officers for the diplomatic and international technical-assistance activities of the
United States and giving it a broad citizen participation. Appointments to the
Academy would be made in the same way as appointments to West Point and
Annapolis.

The Bricker amendment to greatly restrict the power of the President to act
in foreign-policy negotiations has been settled by its defeat in the Senate.

The right of persecutees to file claims against German, Japanese, or other bel-
ligerent property sequestered in this country was extended by appropriate legis-
lation until February 9, 195.5, or 2 years from the vesting of the property, which-
ever is later.

THE ECONOMIC SITUATION

There has been great concern in the country about recession and indeed this
concern was fully justified by the rapid increase of unemployment beginning in
January. The last reported figure on March 31 shows 3,725,000 unemployed or
5.8 percent of the civilian labor force. Since that time the situation has leveled
off and as far as we can ascertain there was an April decrease in unemploy-
ment. The production and income in the country continues at near record levels
exceeded only by those of 1953 with a gross national product as of March 31 of
$359 billion and personal consumption expenditures plus capital investment of
$277,500,000,000 annually.

There is no room for complacency. We must be sure that the Federal Gov-
ernment does everything which it possibly can to avoid a serious economic
decline. The President has properly stated that it will do so and implied that
the Federal Government will accept deficits rather than mass unemployment.
Full implementation of the whole program of the President by the Congress
will be the greatest antirecession effort. This includes the improvement and ex-
pansion of the concrete base of greater social security and unemployment insur-
ance coverage including higher benefits, major encouragement to housing con-
struction, liberalization of foreign trade and investment opportunities, a national
health program, and aid to hospitals, schools, and road construction. The
House of Representatives has already passed the bill for aid to highway construc-
tion of $966 million a year for 2 years which is twice the previous rate. In
addition, we must be prepared to take other measures in terms of making credit
readily available at low interest rates, undertaking further public works and
tax reduction progi-ams should these additional measures be indicated by any
further softening of the economic situation. A hopeful feature is the leveling
off in the consumers' price index presenting the opportunity to our people of a
stabilized cost of living and a higher living standard without the danger of a
runaway inflation.

COST OF LIVING

There is a struggle going on in the Congress between the advocates of high
fixed farm price supports and of flexible price supports determined by the extent
to which the supply of farm products is meeting the demand, the system
advocated by the Secretary of Agriculture. It is heavily in the interest of the
city consumer that there be flexible price supports, and it is in the interest
of the farmers, too. The high fixed farm price supports make the consumer
pay two ways — one, in higher food prices, and, two, in taxes to sustain the
Government program. The United States now has over $6,750 million tied up in
agricultural surpluses and commitments undertaken with respect to them and
is paying for commodities on hand alone about $500,000 a day in storage charges.
Despite the claims of the farm bloc here, while this high fixed farm price
policy has been in effect the farmer's income has fallen by 13 percent in the
last 2 years. This has been largely attributable to heavy inroads into export
markets due to the distorted economic situation in agriculture.

I also v.aged a fight here on a scandalous situation under price supports
which resulted in the piling up in Government store of over a billion pounds
of milk products, including 300 million pounds of butter in which the Govern-
ment had invested over $2.50 million which was in danger of spoiling. The

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3113

Secretary of Agriculture on April 1 cut the support price to 75 percent of parity
and brought about a price reduction in butter available to the consumer by
about 10 cents a pound. It is strongly urged that the consumer by the increased
use of butter should show to the farmer that lo\Yer prices will increase con-
sumption.

The price of coffee has been going up very rapidly, it is claimed, due to
shortages occasioned by adverse growing conditions ; nevertheless, the Senate
has passed a measure to bring trading in coffee under Government regulation.
I favor this as an elementary precaution.

The full school-lunch program for $83,464,000 was recently voted in the
House and $100 million in surplus agricultural commodities were set aside
to be used at the discretion of the President in aid of the foreign policy of
the United States.

I opposed the bill dealing with the entry into the country of laborers from
Mexico, the so-called wetback bill, on the ground that this is the kind of
program which should be effected in agreement with the Government of Mexico
and with adequate precautions against abuse.

CONGRESSIONAL INVESTIGATIONS

One of the most bitterly fought struggles in the Congress concerns the con-
troversy about the excesses in the course of investigations of communism and
subversion by congressional committees. It is alleged on the one side that these
investigations must be pursued to root out Communists who would otherwise be
left in key places and on the other side that the excesses in the investigations
have done violence to national security, to higher learning, to religion, have
seriously impaired the morale of Government employees and have hurt our
foreign policy and the morale of the defense forces. I have taken the position
that the power of the Congress to investigate is essential to freedom in our
country but we do not have to pay a price of serious jeopardy to the civil
liberties of individuals or to our national interests in connection with it. It is for
this reason that I have worked hard for rules of fair procedure for con-
gressional investigating committees and that I have finally developed a plan
for a joint committee of the House and Senate to replace existing committees in
this field as designed to give the highest prestige and the greatest assurance of
fairness to this kind of investigation. Such a joint committee vv'ould not create
the divisiveness which has resulted from the Senator McCarthy-Secretary Stevens
row.

BUDGET AND TAXATION

The administration budget for the next fiscal year is estimated at $65,600,-
000,000 ; tax revenue is estimated at about $62 billion, leaving an expected deficit
of about $3 billion. It is generally considered that this is an extremely economical
budget with the New Look in our defense preparations taking account of modern
ideas in defense, accounting for a reduction of about $5 billion in defense ex-
penditures and with a material reduction in estimates of foreign aid of over
$1 billion, bringing the figure for 1954-55 down to $3,500,000,000.

Taxes have come in for extensive consideration so far in this session. Excise
taxes have been cut, in the main, in half on such things as home appliances,
toilet preparations, luggage, jewelry and furs, theater and other admissions,
reduced still further on long-distance telephone calls, and eliminated entirely
upon moving-picture admissions of 50 cents or less. It is estimated that the gain
to consumers — and expansion in purchasing power — in New York City alone from
these excise-tax reductions will amount to $50 million a year. In addition, the
10-percent reduction in the personal income tax was permitted to take effect on
January 1. The combination of these reductions in taxes to the individual con-
sumer amount to about $4 billion a year. The excess-profits tax on corporations
also expired on the 1st of January.

A general tax revision bill has passed the House of Representatives which
continues at the present rate of 52 percent the corporate tax which was to have
been reduced by about $3 billion on April 1. In addition, this bill makes certain
other desirable provisions, such as exemption of $1,200 of the income of annuitants
from income tax, increase of the exemption for medical expenses from the excess
over 5 percent of income to the excess over 3 percent of income, granting up to
a $600 reduction for working parents paying for the care of dependent children
under 10 years of age, and dealing realistically with the earnings of college
students who are dependents by granting the parents the allowance of $600
where the taxpayer supplies more than half the child's support.

3114 SCOPE OF SOVIET ACTWITY IN THE UNITED STATES

I could not, however, support this bill because, on the one hand, it was sought
to use the bill for purely political purposes by seeking to increase income-tax
exemptions by $100 which would have doubled the expected deficit in the opera-
tions in the Federal Government this year and was an impossible situation if
we expect to meet our obligations in terms of national security, housing, a
national health program, expanded social security and unemployment insur-
ance, foreign aid, increased aid to schools, roads, and hospitals, immigration,
and liberalized foreign trade policy. On the other hand, while it dealt with
the unfairness of double taxation of corporate dividends, it did so at a time
when nonsecurity holders could not be similarly helped.

I appreciate the attractiveness to our community of income-tax reductions,
but I know, too, that our people love their country and i)ut our national interest
above every consideration and that they rely upon me to represent the best inter-
ests of our community both for today and for tomorrow. I am pledged to see
that if there is to be income-tax reduction it is fair and neither jeopardizes our
national security nor prefers any class in the community above any other. I am
very hopeful that when the measure comes back from the Senate it will be
possible to support it and that its objectionable features will have been elimi-
nated. The per capita debt of our country is now $1,674.16 per person. We are
not afraid of this per capita debt, and, indeed, will increase it, if we have to, to
deal with emergencies. But we certainly cannot do it in terms of a play at tax
reduction for purely political purposes.

HOUSING, HEALTH, AND SOCIAL SECURITY

It used to be considered adequate to plan for 1 million housing starts per year ;
we now recognize that our objective must be at least 1,500,000 housing starts per
year. A fair proportion of these housing starts must consist of public housing.
The Federal law authorizes as many as 13.o,000 Federal public housing units per
year, but there has been continuing great opposition to this program in the Con-
gress and it has been continually cut until last year it was down to 20,000 uni-ts.
This means only about 4,000 units for New York City at the most. The Presi-
dent has asked for 35,000 public housing units, which is a modest enough figure,
but even this has been stricken out by the House of Representatives despite
the strong fight put up by me and others. Federal public housing is vital as a
lead for States and cities and in slum clearance. The fight is continuing in the
Senate, and I am very hopeful that not less than 35,000 public housing units will
be authorized, providing over 7,000 for New" York.

One of the major achievements in the House of Representatives on the pend-
ing housing bill was in the reduction of downpayments on new housing for non-
veterans to as little as $1,000 on a $12,000 and $500 on a $10,000 FHA mortgage
loan, in view of the fact that most housing due to the high downpayments was
being sold only to veterans.

The big lack continues to be in middle-income housing and measures to extend
mortgage maturities, reduce interest rates, and otherwise encourage middle-
income and cooperative housing need ui'gently to be undertaken. Adequate
mortgage financing is vital and for this purpose new areas for mortgage financ-
ing must be found. The mortgage banking industry, which includes also life-
insurance companies, savings banks, and pension funds, must recognize this
urgent need. The Congress has authorized the extension of the program of
direct loans to veterans for housing to June 30, 1955, and an additional $100
million of allowability, making a total of $476,231,400 now authorized.

Interest is at this time centered on the administration's proposal for reinsur-
ance for some 90 million Americans who belong to plans like Blue Cross and Blue
Shield which mainly deal with hospitalization and surgical attention, the pro-
posal seeking with the help of the Federal Government to make the benefits which
they afford more adequate to the need. A bill to encourage medical group prac-
tice units is also receiving attention. The problem is a very urgent one as about
$10 billion per year is spent for medical care and hospitalization. The House
of Representatives has passed a program of expanded aid for hospital construc-
tion and the construction of diagnostic centers, nursing homes, and rehabilita-
tion facilities. I still believe that a national health program is essential and
that the best one is the National Health Act which I sponsored, together with
others, to give Federal-State aid for local cooperative health ))lans sustained by
payment of a premium based upon income and giving complete coverage for
hospitalization as well as ordinary medical care.

SCOPE OF SOVIET ACTIVITY IN THE XJNITED STATES 3115

I am vsponsoring legislation to devote a part of the excise taxes realized on
cigai'ettes and liquor for emergency cancer and heart disease research for a 2-
year special program to deal with these the Nos. 1 and 2 killers of our time and
to devote $20 million a year in special research funds for this purpose.

The administration's proposal to extend social-security coverage to ministers,
lawyers, doctors, farmworkers, and similarly excluded categories, expanding the
number covered by 10 million is deserving of full support. So too is the admin-
istration's program for extending unemployment insurance coverage to em-
ployees in establishments having one or more employed, as in many States,
there are restrictions to establishments with 4 (New York) or more or 8 or
more employed which are much too high. We must give urgent consideration to
increasing the benetits available under social security and under unemployment
insurance coverage to make them more realistic in terms of the present-day cost
of living. It is essential to eliminate or materially raise the earnings limitation
of $75 monthly for social-security recipients under 75. Americans covered by
social security have shown remai'kable cooperation in accepting without com-
plaint the increase for both employees and employers in the social-security tax
from 11^ percent to 2 percent on earnings up to $3,600 per year. What we must
do in the Congress is to see that the social-security system fulfills its complete
national objectives.

VETERANS

Developments under this heading continue to be the urgency for adequate medi-
cal care for veterans and vigilance to see that it is no way impaired. I am doing
all I can to help with the increase of pensions for disabled veterans and the
raising of the earnings limitation for beneficiaries who are receiving pension
benefits in view of living costs.

There is a considerable amount of interest in the increase of the pension now
fixed at $63 per month for veterans over 65 and this, too, is related to a realistic
appraisal of present-day living costs.

Armistice Day has been established as Veterans Day. The right to file POW
claims against segregated assets of belligerents in World War II has been ex-
tended to August 1, 1954.

IMMIGRATION

One of the pledges of the President in his campaign of 1952 was to see that the
McCarran-Walter immigration law was rewritten to eliminate discrimination and
injustice. I have just joined with others here in introducing a new immigration
bill to eliminate such injustices and discrimination and to provide for a modern-
ization of the immigration laws. It permits quota immigration on the basis of
the 1950 instead of the 1920 census, as is presently the law. It will increase ad-
missions into the United States from 1.54,000 to an estimated 216,000 per year
and provide for a redistribution of unused quotas among the quotas which are
heavily oversubscribed — Italy, Greece, Baltic States, and Central Europe — in
view of the fact that we have averaged about 65,000 unused quota numbers i)er
year .since the end of World War II.

I have al.so been working to see that there is effective implementation of the
Refugee Relief Act of 19-53 for the admission to the United States as nonquota
immigrants of 209.000 refugees and escapees from behind the Iron Curtain
and also for help with the immigi-ation problems of those from Italy, Greece,
Holland, and West Germany, as only a handful have been admitted mider it.

POST OFFICE AND CIVIL SERVICE

Postal employees are suffering seriously now, their compensation having
lagged behind realistic co.sts of living. Favorable action on a satisfactory in-
crease is urgently required and I have supported this effort vigorously in the
Congress. As has been the practice, increase to meet li\ang costs for other
Federal employees will be correlated with the increase for postal employees.

A great effort is being made to eliminate the deficit in the operations of the
Post Office which now stands at an estimated $425 million for the coming fiscal
year through the increase in postal rates. If this effort be made, it must be fair.
This is especially true as it is claimed that first-class mail is carryins itself but
the second- and third-class mail, especially by magazines and periodicals earn-
ing large sums of money, is not paying its way but is showing very heavy deficits.
It is essential, too, that service be given by the Post Office Department to realize

3116 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

the reasonable expectations of the American people and this is one of the reasons
for my fight for the restoration of two-a-day residential deliveries.

MISCELLANEOUS ISSUES

I am deeply appreciative of the solicitude of many people in our district who
expressed their concern for my safety in the shooting which took place in the
House of Representatives on March 1. It should be gratifying to every Ameri-
can to know that Members of Congress realize this dreadful outrage was the act
of irresponsible fanatics and that there was no vindictiveness, only the deter-
mination that the guilty who promoted this outrage be punished, and that great-
er security precautions be taken.

The House of Representatives has passed a bill to legalize wiretapping sub-
ject to court order and confined only to treason and espionage cases. Under
court order this has been possible in New York for a considerable nimiber of years
and has worked out reasonably. I supported the incorporation in this measure of
the court order provision.

As a result of the revelation of fraud and other excesses in solicitations for
charity disclosed by the outstanding work of the Tompkins-Rabin Committee
of the New York State Legislature, I have introduced Federal legislation both
to implement the law in New York requiring greater public accountability by
organizations which engage in such solicitations and for stricter supervision by
the Post Office Deiiartnient to avoid fraud and to protect the legitimate charitable
institutions soliciting contributions from the public.

I continue to be strongly in favor of statehood for Hawaii and for Alaska,
which has passed the Senate while only statehood for Hawaii has passed the
House, and will support both measures.

Interest continues in my resolution on the unification of Ireland.

In the controversy over whether private utility companies or public agencies
should develop the power potential at Niagara Falls, I have supported develop-
ment by the public agencies which, in turn, can undertake, where appropriate,
distribution through private utility companies undertaking to pass on the bene-
fits of low-cost power to the public. The cooperative development between the
United States and Canada of the St. Lawrence seaway I believe to be entitled
to support as it involves the full development of our country and of much needed
power.

I have received many letters about our natural resources and will continue
my efforts to see that the resources of our country are developed in the public
interest and that the national parks and monuments are maintained for the full
enjoyment of our people.

Puerto Rico continues to develop under the unique commonwealth form of
government its people have chosen giving it both independence and attach-
ment to the United States. Our national objectives there should continue to be to
develop the economy and to help train and educate the people so that they may
seek opportunity anywhere and without being under any necessity to leave
Puerto Rico in order to realize their full opportunities in life.

CONCLUSION

The understanding of what is going on in the country by the people of our
community and the expression of their views is indispensable to the effective
carrying out of our part in the development and progress of our country and
in its security and integrity as what we believe is the most ethical and moral as
well as the greatest Nation on earth.

[Congressional Record, August 16, 1954]
Eighty-third Congress, Second Session — Final Report

The Speaker. Under special request heretofore entered, the gentleman from
New York, Mr. Javits, is recognized for 20 minutes.

Mr. Javits. Mr. Speaker, here is the record as finally completed of this Con-
gress. There will be much controversy as to the sufliciency of the accomplish-
ments of this Congress. I believe that on the whole it has done many worth-
while things which needed doing, but there is much that is undone or only partly
done. Progress toward peace, security, and higher standards of living is

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3117

heavily dominated by world events and more strongly influenced by sections in
the United States than by party alinement.

PEACE

The two dominant recent considerations have been accentuated understanding
by the free Avorld, of the mortal peril inherent in A-bomb and H-bomb war, and
free discussion of the idea of coexistence with the Communist bloc. The ac-
centuation of the danger from the A-bomb and H-bomb is likely to prove a benefit
to the free world which normally moves more slowly than it should in reaction
to peril and the peril is the possible elimination of all civilization in such a war.
The hope of coexistence may be a pleasing illusion to the British or any other
people, who we understand are so much closer to the dread nightmare of a
sudden Communist attack with A-bombs and H-bombs of which dictators like
those in the Kremlin are always capable, but it is certainly not the stuff of which
liolicies for world peace can be made. The fundamental dynamics of the Com-
munist system, which are the same for any totalitarian system, for Hitler as
well as Malenkov and company is such that it must constantly expand for it is
unsuccessful in getting the cooperation of its own people and in doing an effective
internal .lob. Its only hope for survival, therefore, is to continually scare its
own people with the fact that they are being threatened by external enemies, to
continually expand by infiltration, aggression, or any other means no matter how
inmioral and, if possible, to overwhelm all opposition and to rule the whole
world as one totalitarian system. Coexistence is an acceptance of conquests
already made and presumes that we will not protest the Communist Chinese
ill-gotten gains in North Korea and northern Vietnam, or the Soviet Union's
ill-gotten gains in East Germany, Poland, Czechoslovakia, Hungary, Rumania,
and Albania. It would be the height of folly in terms of policy and immoral
as well to concede the legality or permanence of the fruits of these aggressions.
But it is entirely practicable to take this attitude without going to the other
extreme of inviting a preventive war. I am convinced that the Congress and
the American people will not tolerate any such eventuality.

The program vrhich appears best for us in the quest for world peace is to
place even greater reliance on the collective action that can be attained in
the United Nations, even though the Russian veto and other delaying tactics
may prove very nettling and disrupting at times. Second, that we should have
a formula to deal with colonialism and the tens of millions of people who need
to be brought to independence and self-government, and who have heretofore
been non-self-governing. Regional organization is the best way to inspire con-
fidence in former colonial areas and to give them the greatest amount of internal
strength during the formative period of self-government.

If we are to avoid world war III, the competition between the free and the
Communist world will be ultimately resolved by attracting from behind the
Iron Curtain many of the peoples and states now enslaved there. With our
genius for production of our magnificent traditions to advance the dignity
of the individual we should at once undertake with vigor the offensive in the
economic, social, education, and information fields. I believe also that in this
way we can be successful in attracting from behind the Iron Curtain many of
the peoples and states now enslaved there.

ASIA AND THE PACIFIC

There is no question that the free world suffered a serious reverse when
the Red River Delta of Indochina fell into Communist hands. The Commu-
nists have gotten a foothold in south and southeast Asia from which they can
now threaten Thailand. Malaya, south Vietnam, Laos, and Cambodia, Indonesia
and Burma, India, Pakistan, and Ceylon and have also a new window on the
Pacific. Anyone who had the idea that the Communist aggression in Indochina
was some kind of an effort by Indochinese nationalists to drive out the French
will soon see that the Communists will do nothing but enslave the population of
northern Vietnam. Under these circumstances, the action of our Government
in not recognizing the armistice agreement between France and the Commu-
nist forces in Indochina insofar as it partitioned the country but stating that
force would not be used to undo the armistice agreement seems exactly
appropriate.

We have suffered in Indochina from the failure to organize the region of
southeast Asia for its own security and to sponsor self-government and inde-

3118 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

pendence for non-self-governing peoples there, and see now that such regional
organization cannot be improvised when aggression comes despite the fact that
we have mutual-security arrangements with Japan, the Philippines, New Zealand,
and Australia.

I joined in assisting in the adoption of resolutions first refusing to recognize
any conquests by Communist aggression in this area of the world. This was the
proposal of British Foreign Secretary Anthony Eden for a Locarno pact for
this area. Also, the Congress reaffirmed its strong opposition to the admission
of Communist China as the representative of China in the United Nations,
emphasizing its conviction that brigandage and aggression should not be a way
to get into the United Nations. The policy of our Government must now be to
strive to establish the Southeast Asia Treaty Organization (SEATO), thereby
paralleling the situation in Europe where we have a North Atlantic Treaty
Organization, NATO, of 14 nations organized for their own security and coopera-
tion. In southeast Asia there should be heavy emphasis also upon regional eco-
nomic cooperation through such an organization and in addition remaining
problems of independence and self-government in that area can be dealt with
most effectively through the intermediation of such a regional organization.

MUTUAI, SECURITY ACT

The Congress has passed the mutual security program for 1954. This embodies
the foreign policy of the United States. The bill provides for overall foreign
aid of about $3 billion of which 85 percent is directly and indirectly for military
assistance to our allies and to regional security organizations of which we are
members and 15 percent is for technical and economic assistance. Other inter-
esting features of the bill required that 50 percent of United States aid material
be transported in American-flag vessels. About $700 million is provided for
assistance against Communist aggression in the area of Indochina in oi'der to
deal with the situation which now faces us as a result of the cession, in effect,
of North Vietnam to the Communists. Another important provision is one
to stimulate overseas travel by United States citizens and by foreigners in the
United States following generally the lines of a bill which I introduced, and
which received widespread support in the Congress and the country. About
$70 million is to be provided for special economic aid to India in its 4-year
development plan, $115 million is provided for special economic aid in Israel and
the Near East, and $9 million for special economic aid in South America. About
$110 million is provided for the technical-assistance programs in countries of
the free world and a United States contribution to the U. N. multilateral tech-
nical assistance program of about $9 million adequate to December 31, 1954,
is also provided. About $28% million is provided for other humanitarian pro-
grams like the United Nations Children's Fund, the Intergovernmental Com-
mittee on European Migrants, transportation overseas of relief packages, and
others. Two hundred million dollars is provided for relief and reconstruction
in the Republic of Korea and $30 million is authorized for the support and re-
settlement of the Palistine-Arab refugees.

The mutual security program marks the continuance, in 1954—55, of the policy
of erecting a shield of military security of regional organizations, alliances,
and bases throughout the free world ; behind this shield we pursue programs of
economic and technical assistance and cooperation with these same allies and
carry on the interchange of students, professors, trade unionists, businessmen,
and civic leaders among the countries of the free world and explain the posi-
tion of our country through the mediums of the United States Information
Agency. The policy is sound but needs to be pursued with greater resources,
vigor, and initiative than we have yet shown to meet the magnitude of the Com-
munist challenge and competition with which we are faced in the free world.

FOREIGN ECONOMIC POLICY

An enlightened economic policy is essential to our country's free world lead-
ership for peace. The report of the Presidential Commission on Foreign Eco-
nomic Policy early this year urgently recommended extension of the Recipro-
cal Trade Agreements Act for 3 years with certain liberalizing features. This
I supported, but the Congress has refused it and extended the Reciprocal Trade
Agreements Act only for 1 year with the present restrictive clauses still con-
tained in it. There are also grave signs of a return to protectionism in the
country. This is against our interests in terms of foreign policy and also against

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3119

the interest of consumers in our country. So for example, a great effort is being
made to put a tariff on lead and zinc in order to favor uneconomic production of
some lead and zinc mines in this country wliicb could better be put on a standby
basis with some Government help. Also the President materially increased the
tariff on Swiss watch movements, and a drive is being made in the Congress to
double the tariff on hardboard with a resultant material increase in cost to the
consumer of this important building and packaging material though domestic
competition is flourishing and only 1 company produces 70 percent of the domestic

output.

There has been considerable discussion about East-West trade in nonstra-
tegic goods— strategic goods directly useful for war are under generally success-
ful controls— with constant appeals to the emotions that it should be completely
embargoed. This trade today amounts to less than 2 percent of the whole ex-
ternal trade of the free world which gets more out of it than it gives to the Com-
munist world, because it enables the nations of Western Europe to get foodstuffs
and raw materials which they urgently require. Should we embargo this trade
the United States would have to make up the difference of some $2% billion
a year in some kind of aid. There may be very sound military reasons for such
an embargo even on nonstrategic goods, but we cannot ask for an embargo on the
ground that this is a good way to additionally implement the cold war unless
we are ready to pay the cost, and from all indications in the Congress, we are

not.

In late November, there will be an economic conference of the American States
at Rio. Our country has a great opportunity there to present an enlightened, co-
operative, and forward looking economic policy for raising standards of living,
improving the flow of capital investment funds, both public and private, and
expanding technical assistance and the interchange of peoples, skills, and ideas
with the Latin American countries. It is essential that we make the greatest
use of this opportunity especially in view of the serious Communist thieat which
we have just faced in Guatemala.

GUATEMALA

What the dire threat of Communist infiltration means right on our doorstep
was shown by the suspension of constitutional guaranties by the Communist in-
filtrated government of Guatemala. This was almost immediately followed by
a revolution against the Communist dominated government which ended quickly
with its decisive defeat as it obviously did not have the support of the people of
Guatemala. Our problems there now are to insure recognition for the broad
social and economic development of Guatemala and for the firm establishment of
constitutional guaranties and free institutions there. In attaining these abso-
lutely vital objectives, the collective action of the American States is essential
and It is a great challenge to us as the leader in this hemisphere to he sure the
Organization of American States fully measures up to its responsibilities.

GEKMANY AND FRANCE

With France's disengagement from the 7-year-old conflict in Indochina, and
the continued lag in its National Assembly ratifying the treaty for the European
Defense Community, the question of Germany comes strongly to the fore again.
The EDC is the best means which has been devised for utilizing the defense
potential of Western Germany without incurring the danger of a renewal of
German militarism. This project has been approved by West Germany, Belgium,
Holland, and Luxembourg and looks in a fair way to be approved by Italy. The
principal sticking point is France which is fearful of German dominance in the
EDC, and has now set many conditions reducing the effectiveness of EDC as a
means to integrate free Europe, as the condition to even considering EDC. Pres-
sure upon our Government to turn the German Federal Republic loose in terms
of rearmament must be sternly resisted. The danger of some new German-Soviet
approachment must be constantly borne in mind especially while the Soviet has
the absolute power to hold out the bait of reunification upon Communist terms
of AVest and East Germany. The government of the German Federal Republic
and the German people have so far shown themselves; on the side of the free
world. It would be most unwise to expose them to Soviet blandishments by a
surrender to the pressures for complete sovereignty and rearmament for West
Germany at this time. The policy indicted by our Government may necessitate
a grant of further sovereignty to the >uerman Federal Republic but with the

3120 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

continued maintenance of United States, British, and French troops there for the
defense of Western Germany and without allowing West Germany to rearm
a national force. This is an unhappy compromise but one forced upon us by
the situation. It may be necessary to do without the utilization of the West
German military potential for a time (until we can work out EDC) rather than
to incur the grave dangers of a renewed German national military establishment.

NEAE EAST AND ISRAEL

The situation there still remains tense. It is constantly aggravated by serious
border incursions, ambushes, and clashes engendered by continued Arab hos-
tility against Israel. The fundamental policy of our Government must con-
tinue to be strict adherence to and implementation of the Three Power Pact
between the United States, United Kingdom, and France guaranteeing against
aggression in that area, while at the same time we make a regional effort at
economic cooperation and development and resettlement of the Palestine-Arab
refugees. It is for this reason that it is so important that Israel continue to
participate in the mutual-security program in generally the same magnitude in
which she has participated in it for the last 3 years. Provision in the just-
enacted mutual-security program allows $115 million for economic development
for Israel and the Arab States.

In no case, however, is it consistent with the policy of our Government to
give arms aid to the Arab States. I joined with others in the Congress to
protest against supplying arms to the Arab States at a time when such supply
was first contemplated to Iraq as it is now said to be contemplated to Egypt.
I successfully urged an amendment in the Mutual Security Act which provides
that no arms may be furnished in any case which could be utilized for major
external military operations to any country unless earned by it as a member
of a regional security organization. This provision will very considerably mod-
erate the situation. If arms are to buttress the regional security of the Near
East, Israel with tough and effective fighting forces and a fine strategic position
must be considered on high priority.

The recent settlement of the Suez questions between Egypt and the United
Kingdom providing for the evacuation of British forces from the Suez under
certain conditions Avill contribute to the pacification of this area but I have
joined with others in the Congress to insist that the United States see that
Egypt as a result of this arrangement no longer continues to violate the reso-
lution of the United Nations Security Council of September 1, 1951, to refrain
from an interference with shipping to Israel through the Suez Canal. Such
a blockade by Egypt has been causing grave economic difficulties to Israel
which it and the free world cannot afford in view of its own efforts to settle
immigrants and refugees.

Considerable progress has been reported on the possibility of working out
the Jordan River Valley development scheme for which President Eisenhower
sent Ambassador Eric Johnston into the Near East. It is certainly to be
desired that an economic bridge be found which could lead toward some peace-
ful relationships toward Israel and the Arab States as the diplomatic bridge
seems impossible at this time.

OTHER FOREIGN POLICY DEV^ELOPMENTS

Efforts are being made in the Congress to bring about a return of German and
Japanese property of private individuals and corporations seized during World
War II in the United States by the Alien Property Custodian and which by law
had been earmarked to be devoted to the claims of Americans who were prisoners
of war and for injuries done to them. It is opposed by the President and the
Department of Justice. It is argued by others that this would be a good public
relations move. I opposed the return of German property very strongly upon the
ground that the German Government had already undertaken by treaty — Bonn
agreement — to pay damages for the property of its nationals which was seized
during the war in the United States, that much of the property or its proceeds had
already been utilized for war claims, that United States taxpayers should not be
called upon to reimburse for property in view of what Nazi Germany was guilty
of in outrages against the world in World War II, and that there are some thou-
sands of claims pending by persecutees of Nazi Germany, now residents and
citizens of the United States, against these very assets which in all morality and
decency were entitled to first and highest priority and should not be relegated to

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3121

the German forum. The legislation is unlikely to pass in this Congress though it
is likely that the drive for it will be renewed in the next Congress.

An amendment to the War Claims Act was passed this session which extended
the period for filing claims for compensation by World War II prisoners of war
to August 1, 1954.

I introduced a resolution protesting the kidnaping by the Communists in East
Germany of people and officials from West Berlin. This is barbarism — not
civilized conduct — and deserves the condemnation of the world.

I introduced a resolution hailing the new governments of the Gold Coast and
East Nigeria in West Africa, formerly colonial areas of the British and now
gradually emerging into self-government and independence. This resolution was
enacted by the House of Representatives and the Senate, and will be signed by the
President of the United States. I consider it vital that we strongly support
local independence movements which are attained through the utilization of free
institutions and where the capability is shown for protecting and safeguarding
such independence against some new Communist imperialism. Through such a
policy we can show a leadership and statesmanship in Africa which is moving
rapidly toward self-determination and avoid the mistakes for which the free
world paid so heavily in China and Indochina.

ATOMIC ENERGY

This was the first time that legislation upon this momentous subject came be-
fore the Congress since the original Atomic Energy Act passed in 194() which
gave the Government full control over all atomic matei'ials and develoiied both for
weapons and civilian uses. The purpose of the legislation was to permit our
country to share atomic information more widely v.-ith its allies, to ipermit
greater private-enterprise participation in the development of atomic energy for
electric power and to make provisions for patents in respect to atomic energy
for civilian uses. There was no dispute about the sharing of limited atomic in-
formation with our allies — on the use and characteristics of weapons and civilian
uses — but there was very great dispute about the electric power and patent
phases of the law. The law as finally enacted will undoubtedly permit the
Government, if necessary on a yardstick basis, to go into the atomic power gener-
ating field, but will give the priority in the development of atomic energy for
power to private enterprise, provided it meets the conditions established by the
Atomic Energy Commission. This is certainly a conservative compromise.
When the bill was in the House, I voted against keeping the Atomic Elnergy
Cominission entirely out of the generating of electric power from atomic
energy. Also, I voted to require the compulsory licensing of patents with proper
compensation to inventors, as this atomic field is altogether too new to give an
opportunity to some few peoples or companies to get a monopoly on new patents.
A momentous step will have been taken in the enactment of a new Atomic
Energy Act heralding a new revolution in the world of production when the
atom is available for generating electric power. This, too. is a great competi-
tion between the free and slave Communist worlds in which it is essential that
our country lead.

ECONOMIC SITUATION

Since my last report, the employment situation has stabilized with a reduc-
tion of about 400,000, bringing the figure of unemployed to 3,.347,000 at June 30,
1954; and with over 62 million Americans gainfully employed. Other reassuring
factors in the economic situation are the relative stability of consumer prices
which has continued quite consistently now since the summer of 1953 and the
material reduction of inventories in the hands of manufacturers since the sum-
mer of 1953. The latter is a helpful sign for the future as it shows that the con-
sumption is keeping up and that one of the major indicators which gave the
greatest fear of recession early this year is gradually coming into better adjust-
ment. The purchasing power of the dollar has varied by only one-half percent in
the last year and a half.

GKOSS NATIONAL PRODUCT

The aggregate productive power of our economy is running at the rate of about
.$356 billion a year which, though not as high as it was in 1953, when it reached
an all-time high, or up to our potential at full employment, is still well above
the figure for any year other than 19.53. New housing construction which repre-
sents such an important part of our economic base is continuing at a relatively
high rate with about a million two hundred thousand units indicated for 1954,

3122 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

but this is still a half million starts per year less than we ought to have consid-
ering our housing needs and our economic capabilities.

A national health program failed of enactment but Federal aid to hospital
construction, nursing homes, and so forth, aggregating $96 million was on the
modest basis, and only meager progress was made toward urgently needed P^ed-
eral aid to education and school construction. There was enacted a $96 million
Federal-aid-to-roatl-construction program which is being implemented.

By enacting an improved social security law, effecting some improvement
in the unemployment insurance system and keeping consumers' prices stable,
the Federal Government has .sought to put some concrete base under the econ-
omy. On the whole, the picture though not what it ought to be shows elements
of great strength and there is a real feeling that we have gotten over the worst
of our recession anxieties. International uncertainties being what they are,
of course, these must always be borne in mind in appraising the economic situa-
tion. So, too, must the need for dynamic planning and initiative especially
in foreign trade opportunities, use of leisure time and attaining of full employ-
ment be constantly before us.

COST OF LIVING

Farm price policy has loomed very large in this administration's program
in view of its determination to give some attention to the consumer by insisting
upon a system of flexible farm price supports rather than the high fixed farm
price supports which have been in effect now since the war. Under high fixed
farm supports, the consumer is made to pay in two ways. One in higher food
prices and second in taxes to sustain the Government price support program.
The United States now has over $7 billion tied up in agricultural surpluses and
commitments undertaken with respect to them, is paying for commodities on
hand alone about $.500,000 a day in storage charges and has vei-y recently had
to increase borrowing power for absorbing farm price surpluses to $10 billion.
All of this despite the fact that the farmer's income has fallen by 13 percent
in the last 2 years and that his export markets though at the moment showing
some recovery, have fallen by almost twice that during the same period of time.
I have fought hard here for flexible price supports and also have opposed in-
creases in borrowing power to maintain the high farm price parity program.
The effect of such a program was seen when on April 1, the Secretary of Agri-
culture cut the support price on butter to 75 percent of parity and brought about
a price reduction in butter available to consumers by about 10 cents a pound.
Meanwhile, the Agriculture Trade Development and Assistance Act providing
$700 million for the sale of agricultural surpluses to cooperating nations for
local currency plus authorization to utilize $450 million of such surplus under the
Mutual Security Act of 1954, represents an effort to dispose of some of the
enormous surpluses created by the Federal Government's high fixed farm price
support operations.

Investigations are continuing into the rapid rise in the price of coffee. The
latest is a report from the Federal Trade Commission on monopoly controls.
This should be pursued as we must assure that American consumers are treated
fairly in this the greatest single import item — other than international travel —
of our country.

CIVIL RIGHTS AND CIVIL LIBERTIES

The historic unanimous decision of the Supreme Court holding segregation on
grounds of race, creed, or color, in public education and in public housing to be
contrary to the Constitution is a historic event in our national history. It is the
greatest single action in decades to demonstrate the determination of our people
that all shall be citizens of the same class. This decision now needs to be
effectively implemented and extended into other fields where there is still seri-
ous discrimination and segregation. It should resiilt in a renewal of the drive to
eliminate segregation in railroads, buses, and other means of interstate trans-
portation. I testified in favor of the Heselton bill which was reported favorably
by the Committee on Interstate and Foreign Commerce but was caught in the
closing logjam and in a renewed drive for a Federal Fair Employment Practices
Act with enforcement powers.

I took up the fight to insure fair treatment in the investigation by the Special
Committee To Investigate Tax-Exempt Foundations. The activities of this spe-
cial committee in cutting off public hearings before the foundations could be
heard threatened serious injustice to many foundations which have done much
for our people and our country. My resolution sought a review of the work of

SCOPE OF SOVIET ACTIVITY IN THE TJNITED STATES 3123

this special committee by the House Kules Committee as it is my conviction
with respect to all congressional investigations that there must be some way of
maintaining control over them on the part of the authorizing House so that
they deal justly both with individuals and the matters which they are investi-
gating.

I testified before the Senate Rules Committee in favor of my bill to estab-
lish a Joint Committee on Internal Security to replace existing committees in
this field — the House Un-American Activities Committee, the Senate Subcom-
mittee on Investigations (McCarthy) and the Senate Subcommittee on Internal
Security — and alfeo to establish ruies of fair procedure ana means for enforcing
those rules. I believe that the hearings before the Senate Rules Committee
made it very clear that such a plan as this would enable such congressional
investigations to be effective in pursuing the effort to expose communism in key
places without engaging in excesses doing violence to our national security,
higher learning, religion, or the morale of Government employees and Armed
Forces or to affect adversely our foreign policy. Excesses in these congressional
investigations harmful to our national interests have shown that reforms are
essential. I shall continue to fight for these reforms.

I called for an investigation and for furnishing of information on the anti-
religious, anti-Catholic, anti-Pi'otestant, and anti-Jewish hate propaganda which
is going through the mails exploiting the anti-Communist feelings of our peo-
ple in a fraudulent effort to seek the cover of the internal anti-Communist
campaign. I named specifically 10 such hate publications purportedly of general
circulation which were violations of the spirit of our laws and Constitution. The
Postmaster General in response advised that much as the distribution of hate
propaganda through the mails is deprecated the law as it is at present cannot
reach them. I am convinced that new law is needed for this purpose and shall
do everything that I can to see that the Federal Government is enabled to meet
this grave aspersion on our free institutions.

BUDGET AND TAXATION

In the fiscal year ending July 31, 1954, the deficit was somewhat over $3 billion
instead of an anticipated $9 billion. This was brought about through a $7 billion
reduction in exi)euditures. Budget receipts remained fairly constant at about
$64,600 million. Tax cuts of $7i/^ billion were achieved in this fiscal year in-
cluding a reduction estimated at about $4 billion per year in taxes payable by
individuals through the maintenance of the 10 percent personal income tax cut
which took effect on January 1, 1954, a cut of about a billion dollars in various
excise taxes which generally were paid by consumers and favorable provisions
for medical expenses, working mothers, those who draw retirement compensa-
tion, parents with children at college, and others estimated at $827 million.

The most important development in the field of taxation was in the enact-
ment of the tax revision bill, the first full codification of Federal tax laws for
75 years. In addition to rewriting and simplifying the tax law the purposes of
the bill were to continue the corporate income tax at 52 percent and to deal with
tax inequities which concerned individuals. Primary among the individual ben-
efits are allowed deduction of medical expenses above 3 percent of taxable in-
come instead of 5 percent as at present, exemption of the first $1,200 of retire-
ment income annually from taxable income after attaining the age of 65 or for
retired Government employees before that age, reductions of taxable income
up to $600 annually for expenditure for child care by single working mothers or
those with an incapacitated husband or life if the family's income is less than
$5,100 a year, and deduction for a child as a dependent even if the child is earn-
ing more than $600 a year provided the taxpayer is responsible for more than
half of the child's support or the child is attending college. Other improve-
ments include nontaxability of income from health or accident plans or death
benefits, right to report as the head of the household for and to receive the
benefit of income splitting 2 years after the death of a spouse and to half the
benefit if single and maintaining a home for a dependent parent, increase in al-
lowable deductions of charitable contributions and similar benefits. The new
tax law provides that the first $50, plus 4 percent of dividend income, may be
deducted from taxable income but not in excess of 4 percent of such income. As
noted in my previous district report, I opposed at one and the same time addi-
tional exemptions for individuals over and above the tax reductions already
made on the ground that they were entirely political in nature and not war-
ranted by our financial situation and also credits for dividend income on the

3124 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

ground that this was unfair to wage and salary earners who would not receive at
this time any increase in exemptions. I voted accordingly in the various stages
of the tax revision bill.

HOUSING, HEALTH, WELFARE, AND EDUCATION

Forecasts are that new housing construction is running at the annual rate of
1,206,000 units per year, a high since 1950, but the problem is that a balanced
national housing program is made even more difficult by the failure to include
adequate public housing in the housing bill which was recently enacted and by
the continuing failure to find a solution for the problem of middle income hous-
ing. The whole situation has been further troubled by the Senate investiga-
tion of "windfalls" defined as the excess of FHA guaranteed mortgages over the
cost to build middle income rental property and the fact that the mortgage
principal rather than the cost of construction is reflected in the established
rents.

I fought hard for the President's minimal program of 140,000 federally aided
low-rent housing units to be constmcted in 4 years but this failed of enactment.
The only result of the struggle was an authorization of 35,000 new public-hous-
ing units for 1 year but with such restrictions as to its being utilized only for
urban redevelopment as to make it unlikely that many more than 10,000 to
15.000 of the public-housing units will actually be started. New York City will
probably do better than most places in respect of the authorization of 35,000
getting an estimated 15 percent of all units so authorized, but the country's
housin^g needs cannot be justly met on this minimal and truncated program.
The housing bill also liberalized mortgage credit for single-family homes mak-
ing it possil)le now even for nonveterans to acquire a $10,000 home with an FHA
mortgage for a downpayment before closing expenses of $750. Also FHA mort-
gages are made available for the first time on existing housing.

A strong effort was made to begin to establish some responsibility in the Fed-
eral Government for the people's health through an administration bill for a
$25 million fund for the reinsurance of voluntary healtli plans like Blue Cross
and Blue Shield in order to enable them to establish broader coverage and in-
crease their benefits. The bill failed because some thought it did too little and
others were not willing to do anything. I supported at least the effort on the
ground that it was a beginning in accepting the national responsibility for the
people's health. I continue as the sponsor of the comprehensive national health
program for substantial Federal-State aid to voluntary health programs and
this is now being hailed as the most logical solution by important trade union
and other civic union organizations. It is unfortunate that a reverse has been
suffered in the first instance but a national health program is vital to our country
and tile Federal Government must come to it.

A bill was enacted into law which I supported aaithorizing Federal spending
of $30 million a year for 3 years to aid State and local communities in expand-
ing hospital and clinical facilities for the chronically ill, aged, and physically
disabled. This aids further the remarkalily successful Federal hospital con-
struction— Hill-Burton — program.

A bill was passed which T strongly supported extending greater Federal aid to
State rehabilitation programs for the crippled and handicapped. A great many
people — estimated at approximately 2 million — require vocational rehabilitation
in this country each year. We have heretofore been able to help by rehabilita-
tion only 60.000 annually. By the terms of the new 5-year comprehensive voca-
tional rehabilitation program, the Federal Government will ultimately aid the
States in the rehabilitation of over 200,000 of the handicapped per year. It is
estimated that for each dollar spent in Federal aid under this program, ap-
proximately $10 will be returned in taxes from the productive work of the handi-
capped person rehabilitated under this program.

Three resolutions were adopted regarding the participation of the Federal
Government in education. First, to establish a National Advisory Committee
on Education, second, to assist cooperative research in educational problems,
and third, and most important, to authorize a "White House conference on edu-
cation to anal.vze the problems of Federal aid to education and school construc-
tion and see what the Federal Government can do to help meet it. These are but
mild steps toward affirmative Federal aid to meet the very serious classroom
shortage, shortage in funds for teaching, and similar school expenses and other
educational problems in the country. I supported these moves, however, as at
least some effort in the right direction. The measure which has the best chance

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3125

in the Cougress is Federal aid to school construction. I am supporting a hill to
provide ifoOO million for this puriHise over a 2-year period. A bill has also been
authoritatively introduced to provide Federal participation of .$;"> billion, which
is estimated to be about one-half of the aggregate requirement of .$10 billion
for school construction for the Nation. I shall give most earnest support to
these efforts which I believe to be vital to the future of our country.

SOCIAL SECURITY, UNEMPLOYMENT INSURANCE, LABOR

The most signal achievement of this administration is the expansion and
improvement of the social-security law. An estimated additional 10 million are
expected to be covered by the Social Security System, including farm work-
ers, various groups of professional men — with the notable exception of doctors —
including lawyers, dentists, and ministers ; employees of State and local gov-
ernments on an optional basis ; employees of the Federal Government not covered
by retirement systems; United States citizens employed outside the United
States and certain persons employed in fishing and other activities.

One of the very important provisions is to raise the ceiling of allowable earn-
ings for social-security beneficiaries to .$1,000 a year with 1 monthly benefit check
withheld for each additional $80 or fraction of $80 earned from any type of em-
ployment. This is the principle for which I have contended for a long time.
Efforts must continue to afford even greater relief as older people should be
encouraged to work and to supplement what they receive under the Social Secu-
rity System rather than be discouraged from doing so. The wage base for the
payment of the 4-percent social-security tax divided equally between the em-
ployee and the employer is raised from $3,600 to $4,200 a year. Benefits were
increased on an average of about $6 a month per beneficiary.

The minimum benefit is increased to $32.50 from $27.50 and the maximum
benefit is increase from $85 to $108.50 a month for single persons and from
$127.50 to $1G2..50 for married persons.

Approval was given to extending unemployment compensation coverage to
employers of 4 or more workers, the previous standard having been 8 work-
ers under the Federal law and also bringing Federal employees in States under
unemployment compensation into the system. I supported a more liberal un-
employment comp -nsation bill seeking to provide coverage for all employers of
1 or more employees, to establish minimum benefits payments of 26 weeks and
to make the maximum weekly benefit not less than two-thirds of average weekly
earnings. This was defeated, though I introduced legislation for it and, with
others, fought for it.

Social security, unemployment compensation, and a national health program
are the fundamental concrete base for all American working people and self-
employed, dependent upon their earnings and every effort must be made to build
them up, strengthen them, and make them comprehensive.

Efforts to enact amendments to the Taft-Hartley law, even those which were
generally agreed upon as vital, failed in both Houses when the Senate turned
down its own amendments bill. I have joined with others of my colleagues here
in sponsoring legislation in consultation with the great national labor federations
of amendments urgently required to maintain the integrity of labor-management
collective bargaining and I have also opposed efforts to have government, by
injunction, or to otherwise, coerce this typically American process of adjusting
relations between management and labor. Also it proved impossible to get con-
sideration of an increase in the minimum wage, now 75 cents per hour, under
the Federal Fair Labor Standards Act, which should be realistically $1.25 per
hour.

Some concrete gains were made, however, in this important area of national
life, notably the passage of the improvements to the Railroad Retirement Act.
This measure was strongly backed by all the railroad unions, and provided for
an increase in retirement annuities, a reduction of the eligibility age for various
benefits, increases in unemployment benefits, and other changes urgently required
to bring the railroad retirement system more nearly in line with present condi-
tions and costs of living. Of equal significance was the passage of an act imple-
menting the Railroad Retirement Act by permitting individuals to receive bene-
fits under both the Railroad Retirement Act and the Social Security Act. I sup-
ported and worked for both these measures.

I opposed, however, the so-called wetback bill to admit Mexican workers for
seasonal work on farms in the Southwest on the ground that there is no adequate
supervision or enforcement contained in this legislation for those from Mexico

3126 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

entering the United States for temporary farm work and because it tended to
embarrass our relations with Mexico.

VETERANS AND ARMED FORCES

It has been necessary to be eternally vigilant in respect of veterans' benefits,
veterans' compensation, veterans' hospitalization, and veterans' rights generally.
Korean veterans were given an additional 1 .vear to take advantage of the GI
education benefits. The principal measure passed with respect to veterans
was an increase by 5 percent in the monthly benefits payable to veterans with
service-connected disabilities, their widows, survivors, and beneficiaries. A simi-
lar increase was granted to veterans entitled to benefits imder the program for
those over 65 or permanently and totally disabled but not service-connected. In
addition, an act was passed extending the direct loan program of the Veterans'
Administration with an approprition of $100 million to aid veterans in the
financing of home mortgages : a law was enacted providing for the quick
naturalization of aliens who had served in the United States Armed Forces
from June 24, 1950, to July 1, 1955 ; while social-security wage credits for mili-
tary service were extended for 18 months.

Other veterans' measures remain urgent but that is all that it was possible
to accomplish despite an outstandingly brilliant effort by the chairman and
members of the Veterans' Affairs Committee in this Congress.

POST OFFICE AND CIVIT. SERVICE

There has been a classic struggle going on here regarding pay increases for
post-oflSce and classified civil-service employees. There is no question about the
fact that a raise is urgently required by existing costs of living. The difficulty
has been in the economy drive and the Post Office's effort to reduce its deficit by
further increases in rates. After fighting for the Withrow bill, I supported the
Corbett bill to give the post-ofiice workers a 7 percent across-the-board increase
with a minimum of $240 and a maximum of $480. The opportunity was given
to vote for a 5-percent pay raise with a minimum of $180 and without a maximum,
tied to a bill to increase mail rates. I supported this measure also, upon the
ground that it was essential to make provision for a postal pay increase through
willingness to be realistic in the matter of postal rates.

A pay raise, which is essential to Federal classified employees, will stem
directly from a pay raise for the postal workers, and therefore a fight for one
is a fight for the other.

Desirable legislation is being enacted for "fringe benefits," such as group in-
surance to Federal employees, a repeal of the Whitten rider which I opposed from
the very beginning, which has blocked promotions and an adequate personnel
system, revisions in annual leave and sick leave practices and similar matters.
In every way it is essential that personnel relations be considered by the Gov-
ernment on the highest priority. Ours is a government of laws not men, but it is
the men who administer the laws and the Fedei*al Government must show its
sense of justice to those who work for It.

MISCELLANEOUS ISSUES

We have had submitted a number of bills labeled anti-Communist. It has
been necessary not to be taken in by the labels but to carefully analyze each
bill to be sure that it constitutes a material factor in the anti-Communist struggle
and that we were not paying too high a price for it in terms of American
freedoms. I supported bills depriving of citizenship those convicted under the
Smith Act of seeking to overthrow our Government by force ; establishing con-
dign punishment for peacetime espionage ; ruling out the Communist as a political
party and various contempt citations putting up to the courts the issues of wit-
nesses' refusals to answer legitimate questions of congressional investigating
committees. I also supported a bill to allow congressional committees to take
such cases into court at once so as to get the maximum number of answers to
their questions and to make punishment for contempt assured for failure to
answer, and I supported the move to amend the wiretapping bill by requiring a
court order first. On the other hand, I opposed a bill giving congressional
committees the power to grant immunity, and thereupon to require testimony of
a witness pleading self-incrimination on the ground that this would not advance
the anti-Communist struggle but would, on the contrary, represent an invasion
of one of the fundamental historic freedoms of all the American people and one of

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3127

a very special significance to minorities of religion or race, while putting into the
political arena a power to let rogues go free and to punish innocent men.

There have been a great many bills before us to establish dams to produce
power and aid navigation as well as reclamation and irrigation projects involv-
ing substantial extensions of credit by the United States. I have proceeded
generally upon the basis that we must help in the development of our country
according to established patterns, preserving and improving our natural resources
for the public interest, being careful that our national parks and our national
monuments are not compromised or invaded, and guarding against "windfalls"
to a few.

There has been a greatly renewed interest in the problems of youth and juvenile
delinquency in our dangerous world. I have been working hard f(u- the National
Youth Assistance Act to develop a $50 million national youth program. I also
endeavored to bring about an appropriation of $165,000 for the Children's Bureau
of the Department of Health, Education, and Welfare for the purpose of coor-
dinating the activities of State and local youth commissions throughout the
country.

I have made every effort to get consideration of the essential revision of our
immigration laws to make them accord with wise United States leadership of the
free world. I have joined with others of my colleagues in seeking hearings on
a bill which I sponsored entitled "The Immigration and Nationality Act Amend-
ments of 1954" to liberalize the immigration laws. I have also continued my
work to see that there is effective implementation of the Refugee Relief Act of
1953 and am glad to say that better progress is being made with 7,287 visas
granted under this act as of July 30, 1954, and with the enactment of legislation
which will pool the aggregate 209,000 quota numbers available for refugees and
escapees from behind the Iron Curtain and those for preference immigrants from
Italy. Greece, Holland, and West Germany. The authorization to continue
United States participation in the intergovernmental committee for European
migration is expected to resettle several hundred thousand of the excess working
population of free Europe in this fiscal year. I believe, however, that we must
declare the rewriting of the basic immigration law, the McCarran Act, to be a
primary objective of our foreign policy.

A constitutional amendment giving IS-year-olds the right to vote failed in
the Senate. I hope that it will be brought up again as I favor it. It may be
trite, but it is true that those old enough to defend our country with their lives,
should have something to say about how it is run.

Interest continues in my resolution for the unification of Ireland.

I testified in support of a bill with others of my colleagues for a United States
Arts Foundation to assist college, cooperative, and voluntary nonprofit eft'orts in
the fields of theater, music, and art. This is an area in which we are far behind
practically all the other countries of the free world. Such activities are essential
to us as our time for recreational and cultural enjoyment increases and as our
world leadership becomes essential in these fields, too.

Grants of statehood to Hawaii and Alaska got lost in the legislative logjam
with contrary bills coming out of the House and Senate. This is a must for
our country and I have and will constantly and actively support statehood for
both.

I have also sponsored and worked for a United States Travel Commission
to develop for all our people including those in the moderate income level — $3,500
to $5,000 a year — the opportunity for overseas travel which I believe is entirely
feasible.

I have introduced legislation and worked to enable members of the Armed
Forces to vote for candidates for Congress in national elections without regard
to State laws relating to registration and without payment of any poll tax and
to recommend to the States a better and more effective absentee voting procedure
for civilians who are necessarily serving abroad. The broadest possible franchise
for all our people is vital in our national interest.

CONCLUSION

This completes the record of the 83d Congress. As is always true, much has
been done, not always adequately and a good deal of what is essential has been
left undone. On the whole it is not an untypical American congressional record
of achievements and shortcomings. The people will judge as to whether a dy-
namic and progressive program, to use the words of President Eisenhower, has
been enacted. It is vital to us in public office to be sure that they have all the

3128 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

facts upon which to judge. This I consider to be my highest duty and this I have
sought to accomplish to the best of my ability.

Chairman Eastland. Anything else?

Mr. Morris. I have nothing else.

Chairman Eastland. The committee will stand adjourned.

Mr. Javits. Thank you very much.

(Whereupon, at 12: 45 p. m., the subcommittee adjourned.)

INDEX

Note. — The Senate Internal Security Subcommittee attaches no significance to
the mere fact of the appearance of the name of an individual or an organization
in this index.

A Page

African Affairs, Council on 3008

American Communications Association 3019

American Communists 3016

American Federation of Labor 3014

American Labor Party (ALP) 3010,3013,3014,3022-3024

American Veterans Committee 3022

Amter, Israel 3015

Argentina 3014

Army 3004, 3007, 3009

Attorney General (United States) 3008

Balkans 3014

Ballad for Americans (song) 3021

Baron, Murray 3022-3024

Belous, Charles 3013

Berkeley, Calif 3006

Berman, Louise {see also Bransten, Louise) 3006-3009

Boys High School 3011

Bransten, Louise 3006-3009

Brazilian Communist Party 3020

Bridges, Harry 3018, 3019

British Labor Government 3020

Broadway, 1440 or 1441 3012

Brooklyn 3011,3013

Browder, Earl 3014, ,3017, .3018

Browderite 3021

Brown, Mr. (cover name for Gregori Makovich Kheifetz) 3006

Cacchione, Peter V 3013-3015

Cafe Society Uptown 3020

California 3009

California Committee on Un-American Activities 3008

California Labor School 3008

Chiang Kai-shek 3014

Chicago 3003

Chinese Communists 3014

Churchill .3018

Communists 3004, 3006, 3008-3010, 3012, 3016, 3017, 3019, 3020, 3022, 3024

American Communists 3016

Chinese Communists 3014

Communist infiltration of the motion picture industry 3006

Communist International (Comintern) 3006,3017-3019

Communist leaders at a rally (photograph) 3015

Communist Party 3004, 3006, 3009, 3012-3014, 3016-3018, 3020-3022

National Committee of 3004, 3012, 3016, 3018

National Secretariat 3015-.3017

State Committee of 3004

Communist State Convention at Manhattan Center 3013

Communists Delay Having Own Ticket (article) 3012, 3013

Congress 3004, 3010, .3011, .3023

II INDEX

Page

Congress of Industrial Organizations (CIO) 3014

Political Action Committee 3014

Congressional Committee Investigating Un-American Activities 3014

ConnoUv, Mr 3023

Constitution 3009

Corwin, Norman 3021

Criminal Courts Building 3011

Crosbie, Paul 3013

Crow, Jim 3016

Crown-Zellerbacb Corp 3007

Curran, Joe 3019

Dailv Peoples' World (publication) 3009

Dailv Worker (publication) 3006,3009,3013,3021

U. N. editor to 3006

Damon, Anna 3020

Davidson, Mr 3011

Davis, Benjamin J., Jr 3013-3015

de Gaulle 3018

Democratic 3010,3013

Democratic Party 3004, 3014, 3023

Dennis, Eugene 3015, 3017, 3018

Dewey, Governor 3012, 3013

Dewev Republicans 3018

Dies Committee 3014, 3016, 3021

Dies-Rankin 3019

Dodd, Dr. Bella V 3004, 3010, 3012-3015, 3022

Dubinski, Dave 3011

Duclos, Jacques 3018

East Side (New York) 3011

Eastland, Senator James O 3003

Ehrlicb, Philips 3007, 3009

Europe 3004,3013

European theater 3004

Exhibit No. 402 — New York Times article: Communists Delay Having
Own Ticket: Foster Savs Main Aim Now Is to Help Elect "Progres-
sives," Defeat "Reactionaries"' 3012, 3013

Exhibit No. 403 — New York Times article: Foster Bids Reds Vote for

O'Dwyer 3013, 3014

Exhibit No. 404 — Life magazine article: The United States Communist

Party 3015-3022

Exhibit No. 405 — Congressional Record reprints of speeches and remarks of
Hon. Jacob K. Javits of New York on —

July 24, 1947 3025

June 15, 1948 3029

August 7, 1948 30;37

May 12, 1949 3047

October 13. 1949 3041

May 2, 1950 3053

September 14, 1950 3060

Mav 9, 1951 3067

October 15, 1951 3074

Mav 15, 1952 3081

July 4, 1952 3088

May 5, 1953 3095

August 1, 1953 3102

May 5, 1954 3109

August 16, 1954 3116

Farrell, James T 3021

Fast, Howard 3021

Federal Bureau of Investigation 3006. 3021

Field, Frederick V 3005, 3006

INDEX ni

Page
Fifteenth Assembly District (New York) 3010,3024

Florida 3003

Foreign Affairs Committee 3025

Foster Bids Reds Vote for O'Dwyer (article) 3013, 3014

Foster, William Z 3012-3018, 3021

Franco 3016

French Communist Party 3018

Fur and leather workers 3019

George Washington High School 3011

Gold, Mike 3021

Goldstein, John 3011

Goldstein, Judge Jonah J 3013

Gouzenko, Igor 3006, 3020

Gouzenko spy case 3020

Greater New York Industrial Union Council of the CIO 3020

Groat, Bill 3011, 3012

Hague, Boss 3016

Hedley, David 3008,3009

Herudou, Angelo 3020

Hitler 3017

House Committee on Un-American Activities 3006, 3009

lekes, Harold 3020

Independent Citizens Committee of the Arts, Sciences, and Professions 3020

IngersoU, Ralph 3022

International Labor Defense 3020

International Longshoremen's and Warehousemen's Union (ILWU) 3019

Inwood (New York) 3023

Japan 3014

Javits, Hon. Jacob K. ( attorney general. New York) :

Testimony of 3003-3128

Speeches and remarks (reprints) 3025-3128

Kheifetz, Gregori Makovich 3066

Koenig, Sam 3011

L
Laski, Harold 3019

Liberal Party 3010-3012, 3022-3024

Life magazine 3015-3022

Leppler, Sam 3012

"Louise." (See Bransten, Louise.)

Lyons, lOugene 3023

MacArthur, General 3014

Madison Square Garden 3013

Maltz, Albert 3021

Mandel, Benjamin 3003

Manhattan 3013

Manhattan Center 3013

Manuelski, Dimitri 3006

Mark Hopkins Hotel 3007

Marxism (Marxist) 3013. 3014

Merrill, Louis 3023

Mikhailov, Pavel 3006

Molotov-Ribbentrop pact of 1939 3016

Morris, Newbold 3013

Morris, Robert 3003

IV INDEX

Page

Morrison, Herbert 3020

Moscow 3006, 3016-3018

Murray, Philip 3019

National Association for tlie Advancement of Colored People 3020

National Committee to Win the Peace 3020

National Maritime Union 3019

New Masses (publication) 3021

New York 3003-3006, 3010, 3011, 3013, 3014, 3016

New York County 3011, 3022

New York State Communist Convention 3020

New York State Communist Party 3014

New York Times (Publication) 3012, 3013, 3014

New York World-Telegram (publication) 3018

Niebuhr, Dr. Reinhold 3022

Oakland, Calif 3005, 3008

O'Dwyer, Paul 3023

O'Dwyer, William 3013, 3014

Pacific theater 3004

Pittman, John 3009

Pittman, Nancy 3009

PM (publication) 3022

Political Affairs (publication) 3009

Pravda (publication ) 3017

Pressman, Lee 3019

Prestes, Luis Carlos 3020

Q
Queens (N. Y.) 3011, 3013

R
Eadin. Max 3009

Rankin, Congressman 3016, 3021

KCMP 3006

Red Armv intelligence 3006

Republican 3010-3012

Republican-Liberal-Fusion candidate 3011

Reuthei-, Walter 3019

Robles, Gil 3018

Roman, Samuel 3010, 3024

Roosevelt 3018, 3020

Roosevelt policies 3014

Rose, Alex 3010-3012, 3022

Rosenberg Bros 3007

Rosser, Louis 3009

Rusher, William A 3003

Russell, Rose 3024

Russia 3014

Russian Revolution 3016

San Francisco 3005-3008, 3011, 3014

San Francisco Bay 3008

Schneider, Isidor 3021

Schumau, Frederick L 3022

Schwartz, Arthur 3011, 3012

Scottsboro ease 3019, 3020

Social Democrat Liberal Party 3013

Society for Cultural Relations With Foreign Countries 3006

Soviet Consul General 3006

INDEX V

Page

Soviet Embassy 3006, 3007

Government 3006

Union 3006, 3018-3021

State Department 3006

Steelworkers 3019

Teacliers' Union 3024

Thompson, Robert 3014, 3015, 3017, 3021

Tom Mooney School 3008

Transport Workers 3019

Trotskyite 3021

Truman administration 3014

Twenty-first Congressional District (New York) 3010

Ukraine S. S. R 3006

Union for Democratic Action 3022

United Auto Workers 3019

United Electrical Workers 3019

United Furniture Workers 3022

United Nations Conference on International Organizations (San Fran-
cisco) 3005, 3006

United Nations Organization 3004

United Office and Professional Workers 3019

United Public Workers 3019

University Place (New York) 3007

U. S. S. R 3016-3018

War On Korea, a Point 4 in Action (article) 3009

Washington, D. C 3003, 3007

Washington Heights (N. Y.) 3004,3011,3012

Watch on the Rhine (article) 3021

Williamson, John 3015, 3017

Wilson, James 3021

Wright, Richard 3021

Y
Yergan, Dr. Max 3007, 3008

Z
Zubelin, Vassili 3007

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

HEARINGS

BEFORE THE • fJ<^*8oJj

SUBCOMMITTEE TO IlTVESTIGATE THE

ADMINISTEATION OF THE ETERNAL SECUEITY

ACT AND OTHEE INTEENAL SECUEITY LAWS

OF THE

COMMITTEE ON THE JUDICIMY
UNITED STATES SENATE

EIGHTY-FOUKTH CONGRESS

SECOND SESSION
ON

SCOPE OF SOVIET ACTIVITY IN THE
UNITED STATES

NOVEMBER 21, 1956

PART 44

Printed for the use of the Committee on the Judiciary

UNITED STATES
GOVERNMENT PRINTING OFFICE
72723 WASHINGTON : 1957

Boston Public Library
Superintendent of Documents

g^^.^ JUL 25 1957

COMMITTEE ON TKETTUDICIARY

JAMBS O. EASTLAND, Mississippi, Chairman

ESTES KEFAUVER, Tennessee ALEXANDER WILEY, Wisconsin

OLIN D. JOHNSTON, South Carolina WILLIAM LANGER, North Dakota

THOMAS C. HENNINGS, JR., Missouri WILLIAM E. JENNER, Indiana

JOHN L. McCLELLAN, Arkansas ARTHUR V. WATKINS, Utah

PRICE DANIEL, Texas EVERETT McKINLEY DIRKSEN, Illinois

JOSEPH C. O'MAHONEY, Wyoming HERMAN WELKER, Idaho

MATTHEW M. NEELY, West Virginia JOHN MARSHALL BUTLER, Maryland

Subcommittee To Investigate the Administration of the Internal Sectjbitt
Act and Other Internal Secubity Laws

JAMES O. EASTLAND, Mississippi, Chairman
OLIN D. JOHNSTON, South Carolina WILLIAM E. JENNER, Indiana

JOHN L. McCLELLAN, Arkansas ARTHUR V. WATKINS, Utah

THOMAS C. HENNINGS, Jr., Missouri HERMAN WELKER, Idaho

PRICE DANIEL, Texas JOHN MARSHALL BUTLER, Maryland

Robert Morris, Chief Counsel

J. G. SouRWiNE, Associate Counsel

William A. Rusher, Associate Counsel

Benjamin Mandel, Director of Research

CONTENTS

Testimony of— Page

Hageman, E. L 3129

Wilcox, J. L 3141

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

WEDNESDAY, NOVEMBER 21, 1956

United States Senate,
Subcommittee To Investigate the Administration

OF THE Internal Security Act
AND Other Internal Security Laws,
OF THE Committee on the Judiciary,

Washington, D. G.

The subcommittee met, pursuant to call, at 12 : 05 p. m., in the cau-
cus room, Senate Office Building, Senator William E. Jenner pre-
siding.

Also present: Robert Morris, chief counsel; Jay Sourwine, asso-
ciate counsel; and William A. Rusher, administrative counsel.

Senator Jenner. The committee will come to order.

The last time I presided at this subcommittee as acting chairman
we were dealing with the matter of the kidnaping of the little girl
Tanj^a Romanov, and at that hearing I directed that our records be
forwarded to the State Department and action be taken to remove
Mr. Ekimov.

I have heard since the hearing that the State Department had acted
and demanded his removal from the country. I want to make inquiry
this morning as to whether or not Ekimov has left the confines of the
United States.

Mr. IMoRRis. Senator, I understand he has not yet left. But I will
make a formal inquiry some time this afternoon and give you an
answer.

Senator Jenner. Do that, please.

Is the witness ready to be sworn ?

Mr. Morris. Will you stand and raise your right hand.

Senator Jenner. Do you swear that the testimony you will give in
this hearing will be the truth, the whole truth, and nothing but the
truth, so help you God ?

Mr. Hageman. I do.

TESTIMONY OF E. L. HAGEMAN, NATIONAL PRESIDENT, COM-
MERCIAL TELEGRAPHERS' UNION, WESTERN UNION DIVISION,
AFL-CIO, WASHINGTON, D. C.

Mr. INIoRRis. Will you give your full name and address to the official
reporter here ?

Mr. Hageman. My name is E. L. Hageman. My office address,
union headquarters, is 918 Dupont Circle Building, Washington, D. C.

Mr. Morris. AVliat is your official title?

Mr. Hageman. My official titles are, national president of the West-
ern Union division. Commercial Telegraphers' Union, AFL-CIO ; and

8129

3130 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

I am also chairman of the national bargaining committee, Commercial
Telegraphers' Union, AFL-CIO, which represents all of the Western
Union telegraph workei-s in the United States except in the New York
metropolitan area, and which bargains for a national contract for
those workers.

Mr. Morris. Now, Mr. Hageman, how long have you held that
position ?

Mr. Hageman. I have been in my present position since October
1953.

Mr. Morris. How long have you had experience in that particular
field which you have just described ?

Mr. Hageman. I have been active in union work for years, but I
have held a full-time union position with the Commercial Teleg-
raphers' Union, AVestern Union division, for 10 years.

Mr. Morris. Mr. Chaii'man, I would like by way of background
to this hearing this morning to read from our annual report of 1953,
at a time when you, Senator Jenner, were the chairman.

Senator Jenner. Proceed.

Mr. Morris. The report on Interlocking Subversion in Govern-
ment Departments, at page 42, took cognizance of a letter that you,
Senator, had sent to the chairmaii of the Senate Labor Committee.

The pertinent parts of that letter which summed up the situation
at that time are as follows : You said :

In 1951 the Internal Security Subcommittee of the Senate Committee on the
Judiciary held extensive hearings on the American Communications Associa-
tion. In those hearings the Commimist control over the labor organization was
amply established. This American Communications Association is now the cer-
tified bargaining agent for some approximately 5,000 employees of the Western
Union Telegraph Co. in the metropolitan area of New York City, and some 200
employees of the Western Union Cable Co. of New York City, for RCA Com-
munications on the east and west coast, and for employees in certain broad-
casting stations, mostly in New York and in Philadelphia.

You went on to say :

The main oflSce of the Western Union Telegraph Co. is located in the Western
Union Building at 60 Hudson Street, New York. Telegraph circuits to all
major cities in the United States terminate or relay through this building.
Telegraph messages of all kinds are handled by the employees, the majority of
whom are members of and under the control of the American Communications
Association. Many of these messages are Government messages. For example,
the following Government agencies are served by telegraph circuit "tie lines"
connecting the main Western Union oflBce and the agency oflBce.

The following is a partial list of these circuits : The United States Defense
Department Signal Center of the First Army Headquarters, Fort Wadsworth ;
The United States Naval Air Station at Floyd Bennett Field. Brooklyn, N. Y. ;
New York Port of Embarkation, in Brooklyn ; The United States Naval Ship-
yards, Brooklyn ; Sea Transport Station, Atlantic Division, Army Piers 1, 2, 3,
and 4 ; United States Navy Communication Service, 00 Church Street, New
York, N. Y. ; Governors Island and Fort Jay, Second Service Command.

And then you went on to say. Senator, that the whole Internal
Security Subcommittee came to a unanimous conclusion that this
particular situation posed a tlireat to the intei-iial security of the
United States.

Now, Senator, more than 8 years have passed since that time, and
in connection with the forthcoming report that the subcommittee
will make to the Senate on the Communist potential in the United
States, we are reexamining the situation to find if this threat still
continues, even though 3 years have elapsed.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3131

Now, are you acquainted with the American Connnunications As-
sociation, Mr. Ilaoenian?

Mr. Hageman. Yes, I am.

Mr. Morris. Now, the ACA, the American Connnunications Asso-
ciation, is not a member of the AFL-CIO, is it t

Mr. Hageman. No ; the ACA was kicked out of the CIO in 1950,
along with other Communist-dominated unions, for foHowing tlie
Communist Party line, and for disloyalty to American trade-union
principles.

Mr. Morris. Now, as far as you know, Mr. Ilageman, has there
been any change in the political complexion of the American Com-
munications Association ?

Mr. Hageman. No ; not that I know of.

Mr. JNIorris. Now, Mr. Hageman, we are talking about Communist
control of the ACA. Now, they roughly organize about 5,000 work-
ers, do they not, the ACA ?

Mr. Hageman. In the Western Union, what we call the landlines,
in the New York metropolitan division of Western Union they rep-
resent about 4,500 or 5,000 employees.

In addition to that, they represent in Western Union cables a few
hundred employees. They also represent the employees of RCA
Comnnniications, which handles mostly international telegraph traffic.
And they may have contracts with some radio stations, and a few
other smaller organizations.

Mr. Morris. Koughly, how many employees are thus organized on
an overall basis ?

Mr. Hageman. I am not very well informed on the figures. I
would say at this time the maximum would be 8,000. I doubt if it
would be 10,000.

Mr. Morris. We have some figures from Mr. Wilcox, the vice presi-
dent of the Western Union, Senator, which we can come to later, for
a portion of the total that we are talking about now.

Now, when the American Communications Association is con-
trolled, as the evidence seems to indicate, by Communists, that does
not mean, by any means, that the members of the American Com-
munications Associations are themselves Communists; does it, Mr.
Hageman ?

]\Ir. Hageman. No; it does not. And I wish to emphasize at this
point, if I may, that there are large numbers of Western Union Tele-
graph workers in the New York metropolitan area who are as strongly
anti-Communist as any American citizen; they are loyal Americans,
and many of them have endangered themselves by fighting the Com-
munists for years. And we still have many AYesterii Union workers
in New York who are carrying on that fight at this time.

Mr. Morris. For instance in 1953, I notice, the vote there was 2,421
for the ACA, and 1,619 against the ACA. Does that roughly coin-
cide with your estimate or how the employees vote for bargaining?

Mr. Hageman. I would prefer to refer to the figure in 1952. At
that time the Commercial Telegi-aphers' Union, Western Union Di-
vision, had better than 1,800 votes, and ACA had 2,200 votes.

Mr. Morris. So, in the first place, all of the employees don't vote,
obviously, from those figures, if you have only 4,000 voting.

Mr. Hageman. That is correct.

3132 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

And I would like to add this: that in 1952 it is our firm convic-
tion that we lost the election because our union, CTU, was on a
nationwide strike against Western Union, and we had picket lines in
front of 60 Hudson Street at the time the people were voting on
whether to authorize our union to bargain for them.

Mr. IMoRRis. Now, as a result of that election— and you say you
prefer to use the 1952 figures, because the figures there were 2,200
to 1,800, roughly— as a result of tliat election, the ACA is certified,
has been certified by the National Labor Relations Board as the bar-
gaining agent for the Western Union employees in New York City ?

Mr. Hageman. Yes; they have an official certification from the
National Labor Relations Board of the United States Government.

Mr. Morris. And they still have it?

Mr. ILvGEMAN. And if I may add, that is something which the Com-
munists use. ISLany rank-and-file workers will ask the ACA officers
about the Communist charges, and the Commies tell them :

Well, we have an official certification from the United States Government; if
there was anything wrong with us, why hasn't something been done?

Mr. Morris. Now, after they are certified, what then can the ACA
leadership— some of whom we have talked about in individual cases—
what are they empowered to do ; what is their power ?

Mr. Hageman. They are authorized to bargain under the law for
a contract, bargain for wages, hours, and working conditions for the
Western Union workers they represent. And as a part of that bar-
gaining process, they have the organization, and they have the right
to strike.

Mr. I^IoRRis. Now, do they therefore control the shop stewards i

Mr. Hageman. The word "control" is not one that I would use.

Mr. :Morris. I am sorry. You use the word, then, Mr. Hageman

Mr. Hageman. In previous hearings the question has come up be-
fore this committee when you have had ACA witnesses on the stand,
the question has come up aloout the control over the stewards by ACA,
and ACA has told this subcommittee repeatedly that they had no "con-
trol" over them, because they were elected by the rank-and-file em-
ployees of the Western Union Telegraph Co.

According to all the information we can obtain, they have had no
elections in the New York metropolitan area of any of the stewards for
years. They are appointed.

Mr. Morris. iVppointed by the leadership ?

Mr. Hageman. That is correct. . .

Mr. Morris. That is based on vour own observation of the situation ?

Mr. Hageman. That is the information I get from people who work
in New York— maybe their bylaws or constitution requires election
of stewards, but, according to the best information I received from
people who know, there have been no elections of stewards in any
group in the New York metropolitan area for years. And there was
testimony before this subcommittee as to the way the top officers ot
ACA were elected. Sworn testimony before this subcommittee showed
that those elections were crooked. j x -

Mr. Morris. Now, Mr. Hageman, what can a shop steward, tor in-
stance, or workers organized by shop stewards, the shop stewards being
designated in the way you described— to what extent do these shop
stewards and other people so organized have access to these trunklmes

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3133

that we have been talking about; for instance, the trunkline from the
Pentagon through New York overseas, which we will go into in greater
detail later on; Vvhat can they do with respect to those wires, ISli'.
Hageman ?

Mr. Hageman. Well, any employee of Western Union in any tele-
graph office in the country, New York as well as others, has access,
according to his duties and his job, to every tiling that goes through
that telegraph office. Theie are telegrams, thousands of them, going
through any large telegraph office in this country, {ind the employees
who work in that office in the line of their duty would be able to read
those telegrams. In many cases, it is a part of their duty to read
the telegrams to be sure that they are accurate.

Mr. MoKRis. And in many cases they have to type it up originally,
and then still others have to transmit it i

Mr. Hageman. That is correct. An operator, for example, would
transmit a message — we call it "punch a message" — on a perforator, in
the same manner that you would write a letter on the typewriter ; it
has a standard keyboard, and the message is punched on tape, per-
forated tape; the operator handles that message. The same is true
in receiving messages; the operators receive the messages, and they
are compelled to read them in the line of their duty. That is true of
all Western Union employees, not only those who may be union stew-
ards or ACA stewards or just rank-and-file employees.

Mr. Morris. Now, do classified messages go through Western Union
in this way ?

Mr. Hageman. Well, I believe that a Government official would
have to answer that question as to whether they are sending classified
or top-secret messages over the wires. I do know that, in the early
1940's, I was a telegraph employee in the Washington office, and we
had hundreds of messages of all kinds from the United States Gov-
ernment, and many of them were clearly confidential messages.

Mr. Morris. Now, even if these messages were sent in code, at least
in their coded form they would be accessible to the Western Union
employees ?

Mr. Hageman. They would have to be transmitted ; yes.

Mr. Morris. And if somebody else could supply— if, for instance,
Soviet espionage were able to decode some of our messages and get the
key to our codes, then, if that key were placed in the hands of someone
manning the Western Union wires, he could decode the messages as
they came through, if he had the key from other sources?

Mr. Hageman. If the Soviet espionage system had {mx'css or contact
with a hard-core Commie — and in my mind a hard-core Commie will
do whatever the Communist Party tells him to do — if the Soviet es-
pionage system had access to a hard-core Commie in a telegraph office,
there is no question but that they could get information Avliich might
be valuable.

Mr. Morris. I wonder if you could — let's take the occasion of — we
have here in the next part of the evidence, Mr. Hageman, a siatement
that the Department of External xlffairs in Washington, D, C, has a
circuit to the Canadian Government in Ottawa which goes through
New York, and therefore goes through employees who are organized
by the ACA. I wonder if you could take that concrete case — that is
only the first one on a long list that we have here — what, for iiLstance,

72723— 57— pt. 44 2

3134 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

could be done in a physical way — I wonder if you could trace through
that particular tie line, going through New York as it does, according
to Mr. Wilcox, and tell us who would have access to the thing, and
how it could be done.

Mr. Hageman. A wire running from Washington to Canada through
New York — and it would run through other points, too, a wire that
length — it is necessary to have certain points where the technicians
and the wiremen in the telegraph business can cut in and test the wire
and clear trouble if there is trouble. If a wire was running from here
to Canada and went through New York, I don't believe there is any
question that in New York it might be necessary at times to cut in to
clear trouble. And any employees working in the wire and repeater
department in the New York office would have continual access to
those wires.

Mr. Morris. So, really, then, almost anybody in the office who has
the assignment you say, would have access to anything that goes
through that particular line ?

Mr. Hageman. That is correct. For example, I will cite you a case
from my own experience. During the early part of the war there was
a wire running from the State Department to the headquarters in
London. We could cut in on this State Department wire at the Wash-
ington main office, and they could cut in at other points along that
wire before it went into the cable, to test for trouble. I was one of
the employees, as well as others in the office, who had access to a wire
which we knew was highly secret ; we had access to a wire which went
from our State Department to the highest officials in London who were
working on our war plans at that time.

Mr. Morris. And therefore, any Communist with the necessary tech-
nical ability — which presumably they have if they hold that job — can
at any time break into these wires ?

]SIr. Hageman. A Communist Party member who is under the di-
rection of the Communist Party would be, if he is working on such a
job, in an excellent position to turn over information to the Soviet
agents.

Mr. Morris. Wouldn't it seem, Mr. Hageman, therefore, that the
particular assignment of the people who have access to these highly
sensitive wires should have some kind of security clearance ?

Mr. Hageman. Well, I live in Washington, and I have read the
papers about security clearance, and I have seen some pretty terrible
injustices occur because of false rumors about peo]3le.

Mr. Morris. That is right. But, when we talk about a security clear-
ance, we mean on a very efficient and very sophisticated level. You
hesitate to go that far. But the point is, will you say this : Do you feel
that people who are working and whose positions may have been
selected by Communist leadership, that the Government should cer-
tainly be concerned with that particular possible security threat?

Mr. Hageman. Well, I certainly think the Government should be
concerned about a Communist-dominated organization. And I would
like to go a little further on that line right now, if you will permit me,
with respect to our own experiences in the telegraph business. I have
worked for Western Union since 1920. I have been in the telegraph
business, the telegraph-union business, since that time. I have worked
a lot of positions in the telegraph offices in various cities. For 20 years

SCOPE OF SOVIET ACTIVlTt IN THE UNITED STATES 3135

in Western Union we had an organization that was set up by the
company ; it was obviously a company union. I was one of those who
bucked that company miion and helped get rid of it.

Xow, it took the United States Government, the NLRB, about 2
years after the Wagner Act was passed, to disestablish that company-
dominated union. And as an American citizen, and I know I am
speaking for lots of Western Union workers around the country when
I say this, we don't understand why it takes so long to get rid of a
Communist-dominated union.

We were glad to get rid of the company miion, it was the greatest
blessing that ever occurred for the Western Union workers, and we
have made wonderful progress in our wages and working conditions
in the past 10 or 12 years, but we can't understand why there can be
so fast action on getting rid of a company union, and there has nothing
been done yet about a Communist-dominated union, which is as great
a danger, certainly any day, as a company union.

Mr. Morris. May I spell that out a little bit, Mr. Hageman. Under
the NLRB, there was a provision which implied that, if it could be
established by a preponderance of the evidence, by an NLRB trial
examiner, that there was company influence over that particular union,
which influence extended to what they call domination, the Board then
could hold that the union was company dominated and it would be
disestablished.

Mr. Hageman. That was my understanding. And I understand
that, there were a number of company unions disestablished by the
NLRB, by the United States Government, during the late thirties.

Mr. ]\IoRRis. And one of them was the Western Union Association ?

Mr. Hageman. One of them was the Association of Western Union
Employees. It was disestablished by the NLRB in 1939, I believe
it was, and the circuit court of appeals upheld that disestablishment,
it was completely wiped out of existence.

Mr. Morris. Now, Mr. Hageman, your recommendation, therefore,
is that there be a similar action taken by the National Labor Relations
Board, but that the issue to be determined, however, be not whether
the union is company-dominated but whether it is Communist-domi-
nated, and on the basis of the accumulation of the evidence, which
could be done in this particular case, that the NLRB could therefore
disestablish the ACA because it is in fact Communist-dominated. That
issue never came up in 1953 w^hen you sought to prevent the certifica-
tion by the NLRB, that was not the issue ?

Mr. Hageman. That is correct.

Answering your question, Judge Morris, I am not a lawyer, but I
am told that, the way the law reads, it would not be possible to
disestablish a Communist-dominated union in the same way that a
company-dominated union was disestablished. Of course, I am
familiar with the law as it now reads where the SACB can declare that
an organization is Communist-dominated and that organization event-
ually, after it goes to the Supreme Court, loses its bargaining rights
or its prestige before the NLRB.

]Mr. SoFRwiNE. That is a different situation, somewhat, from what
you had in the case of the disestablishment provision in a company
union situation, isn't it?

Mr. Hageman. As I say, I am not a lawyer, and I am not familiar
with the differences in the wording, but I am told that the law these

3136 SCOPE OF SOVIET ACTIVITY IN THE XJNITED STATES

days does not permit any sucli action as they took against company
unions.

Mr. SouRwiNE. In the case of the company unions, the law gave the
NLRB the right to make a determination of company-dominated
.union; isn't that right?

Mr. Hageman. That is my understanding.^

Mr. SouRwiNE. The present law does not give the NLRB the right
to make a determination of Communist domination; is that right?

Mr. Hageman. That is my understanding.

Mr. Sourwine. Where there was a determination of company domi-
nation under the old law, tlie NLRB ordered the disestablishment of
the union; isn't that right?

Mr. Hageman. That is right.

Mr. Sourwine. Where there is a determination by the Subversive
Activities Control Board today that there is Communist domination,
instead of ordering disestablishment, they simply withdraw the bene-
fits of Wagner Act privileges; isn't that correct?

Mr. Hageman. That is my understanding.

Mr. SouinviNE. So that, if a union can get along without the Wag-
ner Act

Mr. Hageman. You mean without the NLRB ?

Mr, Sourwine. That is correct.

Mr. Hageman. If they can get along without the NLRB services,
the action taken by the SACB and upheld — say it is upheld in the
higher courts, in the Supreme Court — wouldn't make much difference
to that union.

Mr. Sourwine. The point I am trying to make for the record — and
I am sure you will agree that there is no argument about us between
it

Mr. Hageman. Yes, sir.

Mr. Sourwine. Is that the NLRB is not in a position to do any-
thing about a Communist-dominated union, because they are not the
forum to make the decision, and when the decision is made by the
forum that Congress has established, which is the Subversive Activi-
ties Control Board, the NLRB simply has nothing to do with the
union ; so far as they are concerned, it no longer exists, they can't
recognize its petitions, tliey can't certify it, they can't do anything
about it, for or against it, so that the NLRB is not in a position, under
the existing state of the law as Congress has fixed it, to do anything
about a Communist-dominated union?

Mr. Hageman. That is my understanding. And I also understand
that they tried to do something, and the courts overruled them.

Mr. Morris. Also, is it your recommendation, Mr. Hageman — are
you conceivably making the recommendation to us that the law be
changed so as to give the NLRB additional powers with respect to
disestablishing Communist unions?

Mr. PIageman. Well, I am not making any recommendation, and
on this particular thing I am speaking personally. I most certainly,
as a trade-union officer, member, would not want to see anything in
any law which would enable anybody to weaken or destroy the genuine
trade unions in this country. I consider those the bulwark of democ-
racy. And evidently, Hitler considered them and Stalin considered
them as such, because they didn't have real trade unions in Hitler
Germany, and they don't have them in Soviet Russia or Hungary.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3137

I ■wouldn't want to see anytliin^ in our laws v/hich would enable
anybody to get at the real trade unions in this country. But it seems
to me that we should liave enough brains in the legislative luiUs and
in the courts oi" our land to write laws which will take care of this
danger to our country — and I consider the Communists as a danger,
and I consider them enemies of the trade-union movement, too, as well
as to our country.

Mr. Morris. Thank you very much, Mr. Hageman.

Now, Senator, I have here a record of an interrogation between
Nelson Frank, of our staff, in New York City, and Mr. J. L. Wilcox,
who is the vice president in charge of employee relations. Western
Union Telegrapli Co., 60 Hudson Street, New York.

Now, this was taken in New York City on last Friday. That would
be November 16. There are a couple of sections here. Senator, that
I would like to read, and then I would like to offer the whole thing
for the record.

Senator Jenntsr. It may become a part of the record, and you may
proceed to read it.

Mr. Morris. Mr. Frank asked Mr. Wilcox :

How many employees were organized by the ACA in New York City?

Mr. Wilcox answered :

It is approximately 1,000 less now [than in 1951]. The testimony at that
time read 5,500 Western Union employees represented by the ACA, but at the
present time it nins about 4,500, the difference in the number of personnel being
due to mechanization, with a possible loss by some diminution in the load.

That 4,500 people does not include the RCA people you men-
tioned, in addition ?

Mr. Hageman. That is right.

Mr. Morris. So, just as far as the ACA organization in New York
is concerned, the figure, according to Mr. Wilcox, is 4,500 instead of
5,500 for 1953?

Mr. Hageman. Yes.

Mr. Morris. And that does not include the Western Union cable
employees, which number about 300 ?

Mr. Hageman. That is right.

Mr. Morris. I believe Mr. Wilcox goes on to say that :

The cable is about 300, and the difference are all landline people.

Wliat are cable people and what are landline people, Mr. Hageman?

Mr. Hageman. The cables, as we use the term, go overseas. There
is a Western Union cable that goes to London, and Paris. Tlie land-
lines are the wires running on land throughout the United States.

Mr. Morris. Now, Mr. Frank went on to ask Mr, Wilcox the fol-
lowing question :

Do the ACA members and leaders have any access to and be in contact with
any governmental departments or any governmental circuits?

Mr. Wilcox answered :

Yes, there are ACA members who do regulatory work in connection with
Government circuits which terminate or are routed through New York.

Mr. Frank went on to say :

I note that in your previous testimony, you stated that stewards of ACA
within Western Union would know the intimate details of the work such as
the mechanism, the machinery of the company ; is that true?

3138 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

Mr. Wilcox said :

That is still true. That is, the technicians or regulatory people that I refer
to in the previous answer.

Mr. Frank said :

I note that it was stated that if a person has communistic leanings "he would
be in a good position to know where to hit us where it would do the most
damage." Is that still true?

Mr. Wilcox :

Yes, the source of danger is through knowing where the plant could be
damaged most effectively. In time of conflict, well-placed acts of sabotage could
cripple our plant if the individual was so inclined to do so.

There he brings up the possibility that, if the Connnunists wanted
to cut off communications, all the communications that we have said,
then they would be in a position to know where to do the damage and
cut off the wires that we may have with the Canadian Government,
the British Government, and the others that you mentioned.

Is that so, Mr. Hageman? That is another issue that he raises

there.

Mr. Hageman. Well, once again, I want to say that I am very
careful in not trying to put a cloud over a group of workers because
they are stuck with Communist leadership. As I stated previously,
many of these New York Western Union workers, I think the over-
whelming majority of them, are loyal, patriotic American citizens,
and I wouldn't want to say anything here which would cast a cloud
on their loyalty.

But it is a fact, as I stated previously, if a hard-core Communist
were working in wliat we call the technician group and had access
to these wires in testing, he could get at valuable information which
goes over those wires, many of them Government wires, and if such
a hard-core Communist were in that group he would know what the
vital points were, and he would be a very effective saboteur if the
Communist Party and Soviet Russia ever decided to sabotage.

Senator Jennisr. At this point, I think the committee ought to
produce for our record, to make this record complete, a Government
witness who could tell this committee just exactly what goes over
these wires, because from what this gentleman has said and the previ-
ous testimony this committee has had, this country's communications
are in a very precarious position.

In view of the tensions all over the face of the earth at this time,
I think this matter should be looked into thoroughly. And from
what this witness has said, if the NLRB, under tlie present law, can-
not disassociate a Communist-dominated union from being the bar-
gaining agent, certainly we need legislation to see that the NLRB
does have the authority to disassociate a Communist-dominated union
from being a certified bargaining agent for the laboring organiza-
tions of tliis country.

That is tlie purpose of these legislative committees, the primarj^
purpose, to get the facts, so that we can have intelligent legislation.
And certainly, there is a weak link here someplace in the law.

Mr. Morris. Senator, would you also want the staff to have present
here one of the officers of the ACA, to give their version of the story?

Senator Jenner. Yes, I think that would be very helpful.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3139

Mr. Morris. Senator, may I just read a few more passages from
the Wilcox letter? It is very brief.
Senator Jenner. Yes ; proceed.
Mr. Morris. Mr. Frank :

I wonder if you could tell me what circuits ACA members handle.

Mr. Wilcox answered :

Members of the ACA handle international traffic to and from our offices in
London, Paris, and other continental points, as well as domestic circuits ter-
minating in New York.

The last exchange was as follows. Mr. Frank said :

In other words, if I might sum up, the situation is now as it was in 1951,
and again in 1953, when the subcommittee's summary report on subversive in-
filtration in Government departments was publicized. That is, despite what
is known about them and despite the refusal of its president, Mr. Selly —

that is Mr. Joseph Selly ?

Mv. Hageman. Pie is the president of the ACA.
Mr. Morris (continuing) :

and others, to answer questions about their communistic connections and related
matters, the Labor Board still requires you to treat the ACA as you would
any legitimate union and that the ACA is still the bargaining agent for all
of these workers dealing with traffic circuits and tie lines which handle various
United States circuits?

The answer of Mr. Wilcox is :

The situation has not changed in any material respect since I last gave my
testimony before your committee. The ACA has again been confirmed to the
Western Union Telegraph Co. as the authorized bargaining agent for our em-
ployees in the metropolitan area. In this respect, the company feels it must
meticulously obey the law and deal with the bargaining agent as certified by
the appropriate Government agency.

And then, Senator, he gives a very valuable appendix, tliree pages,
in which he lists the Government circuits going througli the New
York office, and in addition, those of foreign governments. We have
the Pentagon, we have Andrews Field, we have the Loring Air
Force Base in Limestone, Maine, the United States Department of
Agriculture, the British delegation to the United Nations, and vari-
ous other wires which obviously must carry some kind of sensitive
information — whether it would be coded or uncoded I cannot say,
Senator.

Senator Jenner. Is the State Department in there ?

Mr. Morris. Yes, the second item in here, the United States State
Department in Washington, D. C, to Ottawa. And then there is
the Netherlands Embassy in Washington, to New York. There is the
Department of Defense Production in Washington, to Ottawa, and
the United States Information Agency— apparently, most of their
wires seem to be going through there, eight United States Informa-
tion Agency wires to New York.

Senator Jenner. The entire document will go into the record and
become a part of the official record of this committee.

(The document referred to follows the interrogation of Mr. Hage-
man.)

Mr. Morris. Senator, we have here 8 or 9 exhibits which I would
like to put into the record. I think. Senator, they all speak for
■themselves, and they relate to various investigations which are now

3140 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

going on, which we would like to have in the record for the annual
report.

Senator Jenner. They may go into the record and become a part of
the record at the proper point.

(The exhibits referred to were made a part of the record, and will
be found in the files of the subcommittee.)

Senator Jenner. Any other questions ?

Mr. Morris. I have no other questions. I would like to thank Mr.
Hageman, who rearranged his schedule to make possible this hearing
this morning.

Mr. Hageman. I wonder if I could add one thing.

Mr. Morris. By all means, Mr. Hageman.

Mr. Hageman. I would like to add that, in our telegraph field, we
have found that this Communist-dominated ACA has not been a help
in our fight to better the wages and working conditions of the Western
Union workers.

In 1951, our union was after a 25-cent-an-hour wage increase for
the Western Union workers nationwide. And at the very time we
were asking for that money and putting up arguments for it and
threatening to strike for it, Joseph Selly, the president of the ACA,
went to a Western Union stockholders' meeting and told Walter Mar-
shall, the president of Western Union, that they would settle for less
than half of that.

During our 1952 strike, when the Western Union workers nationwide
were on the picket lines for 53 days fighting for the 40-hour, 5-day
week, ACA crossed the picket lines and didn't help the Western Union
workers win the 40-hour week.

Those are two instances of the kind of situation we have in our
bargaining with Western Union.

Mr. Sourwine. Did the members of that union benefit by the hours
and wages which your union secured ?

Mr. Hageman. ACA has become a coattail rider, as far as we are
concerned. We do all the fighting, all the bargaining, and, as soon
as we have signed the agreement, they rush in and demand that the
company give them the same thing. In 1951 we won 17 cents an hour
wage increase for the Western Union workers. ACA had signed up
the day before for 16y2 cents, so they went in and persuaded Western
Union to tear up the agreement and give them one for 17 cents. But
they have ridden on our coattails for 10 years, and we are getting tired
of the burden.

Mr. MoKRis. That is very interesting, Mr. Hageman.

Senator Jenner. Thank you, Mr. Hageman.

If there are no further witnesses, the coinmittee will stand in re-
cess.

(Wliereupon, at 12: 50 p. m., the subcommittee adjourned, subject
to the call of the Chair.)

1 -t V 1 I. . \ . », ■■

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3141

STAFF CONFERENCE

New York, N. Y., Novemher 19, 1956.

Held Pursuant to the Request of the Internal Security Sub-
committee OF THE United States Senate Committee on the
Judiciary in the Office of J. L. Wilcox, Vice President of the
Western Union Telegraph Co., for Employee Relations, 60
Hudson Street, New York

Present : Mr. Wilcox, Subcommittee Consultant Nelson Frank, and
Mrs. Hilda Kuebler, secretar}^ to Mr. Wilcox.

Mr. Frank. Mr. Wilcox, this hearing is being held as a means of
avoiding your being subpenaed or called by the committee because
most of the information which we may obtain was probably given
by you when you appeared as a witness before our committee some
years back. Do you remember, Mr. Wilcox, your testimony at that

time?

Mr. Wilcox. Yes; I have reviewed the testimony many times, but
I must confess I have not gone over it recently.

Mr. Frank. Well, if I show you a copy of it for your perusal,
would you say that the situation has changed any since your testimony
at that time ?

Mr. Wilcox. I am familiar enough with the testimony to say that
the situation is very much the same in all important respects as when
I testified before the committee in 1951.

Mr. Frank. At that time, I believe, you gave figures about the
number of employees.

Mr. Wilcox. It is approximately 1,000 less now. The testimony
at that time read 5,500 Western Union employees represented by the
ACA, but at the present time it runs about 4,500, the difference in
the number of personnel being due to mechanization with a possible
loss by some diminution in the load.

Mr. Frank. With that 4,500 figure, can you break it down among
landline and cable employees?

Mr. Wilcox. The cable is about 300 and the difference are all land-
line people.

Mr. Frank. 'Have you seen any indication from members of the
American Communications Association or its leadership with respect
to their alleged activities that is any different than it was in 1951?

Mr. Wilcox. None whatsoever. As far as I am concerned, I have
seen nothing which would prove or disprove any of the former alleged
activities of the ACA.

Mr. Frank. Do the ACA members and leaders have any access to
and be in contact with any governmental departments or any Govern-
ment circuits?

Mr. Wilcox. Yes ; there are ACA members who do regulatory work
in connection with Government circuits which terminate or are routed
through New York.

Mr. Frank. I note that in your previous testimony you stated that
stewards of ACA within Western Union would know the intimate

3142 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

details of the work such as the mechanism, the machinery of the
company ; is that true ?

Mr. Wilcox. That is still true. That is, the technicians or regula-
tory people that I refer to in the previous answer.

Mr. Frank. I note that it was stated that if a person had commu-
nistic leanings "he would be in a good position to know where to hit
us where it would do the most damage." Is that still true?

Mr. Wilcox. Yes ; the source of danger is through knowing where
the plant could be damaged most effectively. In time of conflict, well-
placed acts of sabotage could cripple our plant if the individual was
inclined to do so.

Mr. Frank. Since you last testified, there has been another National
Labor Relations Board election governing the employees within the
area covered by AC A ?

Mr. Wilcox. That is correct.

Mr. Frank. The Commercial Telegraphers' Union, AFL-CIO, lost
to the ACA at that time ?

Mr. Wilcox. That is correct. The ACA was again certified by the
NLEB as the authorized collective-bargaining agent for our employees
in the metropolitan area.

Mr. Frank. And there has been no change in the decision of the
NLEB granting full status to ACA to use the full facilities of the
NLRB?

Mr. Wilcox. There has been no limitation placed on the ACA by
the NLRB as the authorized bargaining agent.

Mr. Frank. And this is true, despite the fact that Mr. Joseph P.
Selly, the president of ACA, and others, who had signed affidavits
claiming they are noncommunistic, declined to state for the 1951
hearing as to their affiliations ?

Mr. Wilcox. As far as I know, the NTiRB has taken no action
because of Mr. Selly's and others' refusal to answer certain questions
before your committee. In this connection, I would like to point out
that Mr. Selly and Mr. Joseph F. Kehoe, international secretary-
treasurer of the ACA, do not now, nor have they ever worked for the
Western Union Telegraph Co.

Mr, Frank. So far as you know, no effort has been made to act
under the portion of the new Butler-Brownell Act permitting the
Attorney General to petition the Subversive Activities Control Board
to include unions among the organizations which must register their
affiliations ?

Mr, Wilcox. To the best of my knowledge, no action has been
taken along tliis line by the Attorney General's Office.

Mr. Frank. I wonder if you could give me or could make available
to our committee a list of the cable circuits from Washington to or
through New York which would be accessible to members of the
ACA.

Mr. Wilcox. I have had such a list prepared as of November 15,
1956, and I am furnishing you with a copy.

Mr. Frank. Enter this into the record and annex it to the record
of the hearing, at the end.

Just a final point for the record. It is my understanding that the
CTU (AFL-CIO), about which there has never been, as far as I
know, any similar accusation, is the bargaining agent for the remain-
ing members ?

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3143

Mr. Wilcox. Yes; the CTU is the bargaining agent for the ma-
jority of onr people in the United States. In fact they represent
six-sevenths of the employees, about 83,000 including messengers.

Mr. Frank. iVnd CTU does not come in contact with cable circuits
in New York City ?

Mr. Wilcox. That is correct.

Mr. Frank. I wonder if you could tell me what circuits ACA
members handle.

Mr. Wilcox. INIembers of the ACA handle international traffic to
and from our offices in London, Paris, and other continental points
as well as domestic circuits terminating in New York.

Mr. Frank. Am I correct in saying that the ACA also deals with
KCAC, has a contract with KCAC and thus handles correspondence
practically covering the globe ?

Mr. Wilcox. Yes; ECAC's situation with respect to ACA is no
diiferent than ours since the ACA has been certified as the authorized
bargaining agent by the NLE.B.

Mr. Frank. And they, too, must negotiate and sign contracts with
ACA under penalty by the NLRB ?

Mr. Wilcox. Yes ; in that respect the RCAC situation is no different
than our own.

Mr. Frank. Can you give me the approximate number of employees
with RCAC?

Mr. Wilcox. I understand they have approximately 1,500 employees.

Mr. Frank. I understand that ACA also has a contract with the
French Cable Co.

Mr. Wilcox. Yes ; about 100 employees including messengers.

Mr. Frank. In other words, if I might sum up, the situation is
now as it was in 1951 and again in 1953 when the subcommittee's
summary report on subversive infiltration in Government depart-
ments was publicized. That is, despite what is known about them and
despite the refusal of its president, Mr. Selly, and others, to answer
questions about their communistic connections and related matters,
the Labor Board still requires you to treat the ACA as you would
any legitimate union and that the ACA is still the bargaining agent
for all of these workers dealing with traffic circuits and tie lines which
handle various United States circuits ?

Mr. Wilcox. The situation has not changed in any material respect
since I last gave my testimony before your committee. The ACA
has again been confirmed to the Western Union Telegraph Co. as
the authorized bargaining agent for our employees in the metro-
politan area. In this respect the company feels it must meticulously
obey the law and deal with the bargaining agent as certified by the
appropriate Government agency.

Mr. Frank. The answers to the questions that you have given, Mr.
Wilcox, would have been the same in all cases had they been given
under oath before one of the Senators of the committee?

Mr. Wilcox. That is so.

Mr. Frank. Thank you very much, Mr. Wilcox.
(The list of circuits accessible to ACA members, supplied by Mr.
Wilcox, follows :)

3144 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

ClBCUlTS, GOVEBNMENT — WASHINGTON TO OB THEOtTGH NeW YOKK

GROUP 1

Department of External Affairs XlOO, Washington, D. C.-Ottawa
United States State Department X1660, Washington, D. C.-Ottawa
Netherlands Embassy X1527, Washington, D. C.-Kew York
Netherlands Embassy X1628, Washin.uton-New York
Department External Affairs X297, Washington-Ottawa
United States State Department X9Sfi, Washington-New York
Department of Defense Production X202, Washington-Ottawa
Department National Defense XlOl, Washington-New York
British Joint Committee Office Tie Line CD, New York-Washington
State Department Tie Line CD, New York-Washington
British Embassy Tie Line CD, New York-Washington

GROUP 2

United States Information Agency XllSC, Washington, D. C.-New York
United States Information Agency X1232, Washington, D. C.-New York
United States Information Agency X630, Washington, D. C.-New York
United States Information Agency X1008, Washington, D. C.-New York
United States Information Agency X913, Washington, D. C.-New York
GSA No. 7, Washington, D. C.-New York

United States Information Agency X1443, Washington, D. C.-New York
United States Information Agency X841, Washington, D. C.-New York
United States Information Agency X1291, Washington, D. C.-New York

GROUP 3

Royal Canadian Air Force X565, Washington, D. C.-Ottawa

GROUP 4

USAF 1593, Andrews Air Force Base-USAP Highcombe, England

USAP 921, Pentagon-Brooklyn, N. Y.

USAF 1065, Pentagon-Portsmouth Air Force Base, N. H.

Other services at Plattsburgh, N. Y.
USAF 1041, Pentagon-New York
USAF 925, Pentagon-Brooklyn, N. Y.
USAP 507, Andrews Air Force Base-London, England
USAF 585, Andrews Air Force Base-CO New York
USAF 592, Andrews Air Force Base-CO New York
USAF 902, Washington, D. C.-New York and Roslyn, N. Y.

USAF 1513, Andrews Air Force Base-Loring Air Force Base, Limestone, Maine
USAF 715, Pentagon-Mitchell Field
USAF 719, Pentagon-Stewart Air Force Base, Newburgh
USAF 721, Pentagon-Westover Air Force Base, Chicopee Falls
USAF 71G, Pentagon-Mitchell Field
USAF 598, Andrews Air Force Base-New York
USAF 515, Andrews Air Force Base-New York

USAF 1029, Andrews Air Force Base-Harmon Air Force Base, Newfoundland
USAF 1514, Andrews Air Force Dase-Loring Air Force Base, Limestone, Maine
USAF 480, Andrews Air Force Base-Harmon, Newfoundland
USAF 1051. Pentagon-Westover Air Force Base
USAF 947, Pentagon-Brooklyn, N. Y.
USAF 946, Pentagon-Stewart Air Force Base
USAF 1053, Andrews-Carswell Air Force Base

GROUP 5

USA AY1577, Pentagon-Brooklyn, N. Y.

USA AY1521, Arlington-Patches to International facilities at New York

USA AY1578, Pentagon-Brooklyn. N. Y.

USA AY476, Arlington-CO New York

Other service at Pentagon and Port George Meade
USA 559, Pentagon-CO New York
United IStates Army AY1580, Washington-Asbui*y Park, N. J.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3145

United States Army iri76, Washington-Brooklyn, N. Y.

United States Army 1579, Washington-Brooklyn, N. Y.

United States Army 1591, Washington-Brooklyn, N. Y.

United States Army AY568, Pentagon-Hammels 'i

United States Army AY1590, Pentagon-Brooklyn, N. Y.

United States Army AY544, Pentagon-Davis Air Force Base

GROUP 6

United States Naval Communications XG95, Arlington-Leitram, Ont

GROUP 7 "on call" CIECUITS (USA)

545, Washington-Davis. Calif.

AY510, Cincinnati Diversion Cable Office

AY539, Washington-CO New York

AY.542, Washington-San Antonio

AY54G, Wasbington-ACS Seattle

AY547, Washiugton-ACS Seattle

AY557, Washington-CO New York

AY55S, Wa.shington-CO New York

AY1604. Baltimore-Washington-CO New York Talking Circuit

GROUP 8 "ON call" CIRCUITS (USAF)

AF 1575, Washington-Montreal

GROUP 9 TELEMETER — NEW YOEK-WASHINGTON

United States Department of Commerce VPX 101
British Delegation to U. N. VPX 206

GROXjP 10 \1A NEW YORK DEPENDING ON ROUTING (USA) CAN BE THROUGH NEW YORK

AY160, Arlington-Hammels

AY218, Fort George Meade-Fort Wadsworth

AY456, Arlington-Hammels

AY4G0, Arlini-'ton-Hammels

AY457, Washington-Hammels

The following comment by J. B. IMatthews on "the Attorney Gen-
eral's list" of organizations he believes to be Commimist enterprises
was ordered into the public record today :

August 7, 1956.
Digest of Current Communist Activities

A highly important volume recently appeared under the title of "The Federal
Loyalty-Security Program." This 301-page book is the report of a special com-
mittee of the Association of the Bar of the City of New York.

This memorandum deals only with that section of the book which is entitled
"The Attorney General's List" (pp. 154-157).

In the bar association's report, some of the criticisms of the Attorney Gen-
eral's list (authorized under Executive Order 9835, of 1947) are clearly valid.

For example, the bar association's report holds, with good reason, that "the
list should be kept up to date." Otherwise, it can be misleading and highly
detrimental to an understanding of the current operations of the Communist
apparatus. Some 200 Communist organisations have been placed, to date, on
the Attorney General's list. Only a few of these 200 Communist organizations
are still in existence. The majority of them were already defunct when they
were placed on the list.

Valid commonsense reasons, within the purposes of Executive Order 9835,
justify the Inclusion of defunct organizations on the Attorney General's list. A
Federal Government employee's security suitability may properly be judged,
in part, by his support of a substantial number of Communist organizations,
even though these organizations are now defunct.

3146 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

The inadequacy of the Attorney General's list may be seen when we consider
the fact that there have been at least 10,000 Communist organizations, commit-
tees, and other enterprises — all of comparable importance with the 200 which
have been listed.

Because the Attorney General's list is not kept reasonably up to date and
because it is far from complete, it serves little or no purpose, even for depart-
mental heads of the Federal Government; and its publication is woefully mis-
leading for private organizations and citizens. Many American citizens have
seriously proposed that the Attorney General's list and other official citations
of Communist organizations be made available in all public libraries, so that
the average citizen might have a responsible and official guide on what to support
and what not to support. The fallacy of this proposal lies in the fact that, when
the Communists first launch one of their enterprises, they at once solicit signa-
tures and support. Naturally, the name of a newly launched Communist enter-
prise would not be found on any list which could be placed in a library. To
reason that, if an organization is not on the Attorney General's or some other
official Government list, it therefore represents a worthy cause, would be to
display a complete ignorance of the operations of the Communist apparatus.
The life of the average Communist-front organization is less than 6 months,
which means that it would already be defunct by the time a citizen could obtain
guidance from any list which could be made available in a public library. '

The conclusion of this matter, given the obvious limitations of the Attorney
General's list and congressional committees, is simply that the citizen must rely
upon his own resources of infoi'mation and intelligence in determining which
cause or organization to support and which not to support. He cannot, in the
nature of the case, rely upon any official Government crutch. The Attorney
General's list was never intended to aid the private citizen in determining what
he should and what he should not join. It was intended solely for the guidance
of departmental heads of the Federal Government in passing upon the security
suitability of Federal Government employees.

In another criticism of the Attorney General's list, the bar association's report
is unrealistic with respect to the nature and operations of the Communist-front
apparatus. The report says :

"Another weakness is that the list was originally compiled with no opportunity
for a hearing by the organizations included. No such list should be made public
unless the organizations on it have had notice and an opportunity to be heard
by an administrative tribunal, with a further opportvmity for judicial review
of the administrative determination (p. 156)."

This proposal for hearings and judicial review may be perfectly sound and
equitable from a legal point of view; but, if this is the only method of giving
effect to the requirements of "due process," the situation is hopeless so far as
an Attorney General's list is concerned.

Tlie Internal Security Act of 1950 provides for hearings and judicial review
for Communist-action and Communist-front organizations. Let us see how it
has worked.

The Internal Security Act has been on the statute books ror 6 years, but to
date not a single Communist-action or Communist-front organization has been
required finally to file a registration statement with the Attorney General.
"Due process," as outlined in the Internal Security Act and as proposed for the
Attorney General's list by the bar association's report, cannot catch more than'
a negligible few of the Communist culprits.

In the first place, a long period of time is required by the FBI to amass the
evidence against a Communist organization and to find competent witnesses
through whom to present it to an administrative tribunal. By the time these
initial steps have been taken, the majority of Communist-front organizations
have gone out of existence.

In the second place, a minimum of several years is usually required for
the machinery of judicial review to reach a final determination of the issues.
In the cases which have been presented to the Subversive Activities Control
Board to date, this snail's pace of "due process" has been amply illustrated.

In April 1953, after long amassing of evidence and finding of witnesses, the
Attorney General petitioned the SACB for orders requiring 12 alleged Com-
munist-front organizations to register with the Attorney General. The twelve
organizations were as follows :

Council on African Affairs
International Workers Order
United May Day Committee

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3147

Civil Riglits Congress

Committee for a Democratic Far Eastern Policy

American Slav Congress

Joint Anti-Fascist Refugee Committee

Labor Youth League

American Committee for Protection of Foreign Born

Jefferson School of Social Science

Veterans of the Abraham Lincoln Brigade

National Council of American-Soviet Friendship

The first seven of these alleged Communist-front organizations have gone
out of existence, and compliance with an SACB order to register would, there-
fore, be Impossible. In the case of the five organizations which are still
functioning, the processes of judicial review are far from complete. If and
when judicial review is finally completed, the Communists need only to dis-
band the organizations in order to escape registration with the Attorney Gen-
eral. They would then proceed to set up new organizations. Even without
the Internal Security Act, the Communist conspiracy normally disbands its
fronts and sets up new ones when public opinion catches up with them.

"Due process," as defined in the Internal Security Act of 1950 and as pro-
posed by the bar association's report, cannot cope with the maneuvers of the
Communist apparatus.

The following correspondence relative to the situation of 10 Amer-
icans held by the Chinese Communists was ordered into the record
today:

Back of the Yards Neighborhood Council,

Chicago, III., June Jf, 1956.

Dear Senator Eastland : Last year at this time we wrote to you asking your
strong endorsement of the State Department's efforts to negotiate with Red
China for the release of a former Back of the Yards clergyman, Father Harold
Rigney, S. V. D. As a result of your help and the assistance of many others.
Father Rigney was released September 16, 1955, according to the terms of the
Geneva talks.

Officials of Red China in these talks agreed to release all American prisoners.
This they have failed to do. There are 13 Americans in captivity today.

Just as we have done before on countless occasions, I am asking for your
help to bring about the release of these Americans suffering the hardships of
Chinese prison life. I am enclosing a copy of the Freedom Crusade fact sheet
which Father Rigney himself is sponsoring.

The American Broadcasting Co. is presenting a 13-week broadcast of Father
Rigney's Freedom Crusade in the Chicago area. We feel that through your
influence a letter to the president of the American Broadcasting Co., 7 West
66th Street, New York City, will convince Mr. Robert E. Kintner that every
American in every section of the country is just as interested in working toward
the release of the 13 Americans in Red China as the people of Chicago. I am
asking also for your help to spread the letterwriting campaign among your
constituents and on the floor of Congress as well.

You did it before in the case of Father Rigney and the job will be complete,
with the help of God and with your help, when we bring the 13 Americans
back home. May we expect your help again please?
Sincerely yours,

Joseph B. Meegan,
Executive Secretary.

The fact sheet, prepared by the Very Rev. Harold W. Rigney,
and referred to in the letters, described the 13 prisoners as "business-
men and missionaries, Protestant and Catholic," and lists them, with
their home cities, as follows :

Rev. John William Clifford (Jesuit), San Francisco, Calif.

John Thomas Downey, New Britain, Conn.

Richard George Fecteau, Lynn, Mass.

Rev. Fulgence Gross (Franciscan), Omaha, Nebr.

Rev. John Alexander Houle (Jesuit), Glendale, Calif.

Paul J. Macken.sen, Jr. (Lutheran Missionary), Baltimore, Md.

Robert E. McCann, Altadena, Calif.

3148 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

Rev Charles Joseph McCarthy (Jesuit), San Francisco, Calif.
Rev. Joseph Patrick McCormack (MaryknoU), Palmyra. N. Y.
Rev. Thomas Leonard Phillips (Jesuit), Butte, Mont.
Bishop Ambrose Henry Pinger (Franciscan), Lindsay, Nebr.
Hugh Francis Redmond, Yonkers, N. Y.
Rev. John Paul Wagner (Franciscan), Pittsburgh, Pa.

June 26, 1956.
Mr. Joseph B. Meegan,

Executive Secretary, Back of the Yards Neighborhood Council,
Chicago, III.

Dear Mr. Meegan : Thank you most sincerely for your letter of June 4, 1956,
€nclosing the Freedom Crusade fact sheet concerning the 13 Americans still held
captive by the Chinese Communists.

I want to assure you that I will do everything in my power, both as chairman
of the Senate Judiciary Committee and as chairman of the Subcommittees on
Internal Security and Immigration, to expedite the return of these American
citizens to their homeland.

Never before in the history of civilization has an armed political conspiracy
claiming membenship in the community of nations acted with such brazen
effrontery and been received with such obsequiousness as the Communist despots
of China.

It has always seemed outrageous to me that the Red Chinese, whose daily
violations of the fundamental principles of human freedom elo(iuently proclaim
how totally unfit they are to take a place among the civilized nations of the
world, should receive the deference that the United Nations persists in shower-
ing upon them.

Time and again the highest officials of the United Nations, as well as the
leading diplomats and potentates of the rest of the world, have begged these
bloodstained warlords to exhibit the most elementary respect for universally
recognized human rights. And yet today, after years of such groveling, the foot
of Mao Tse-tung remains firmly planted on the collective necks of 13 Americans
whose only crime is that they have loved freedom and their God.

I am sending your letter, together with a copy of this reply, to Secretary of
State Dulles and to Ambassador Henry Cabot Lodge, with a request that they
renew their hitherto persistent efforts to free those Americans still being held
by the Soviet forces presently occupying China. Additional copies will be sent
to every member of the Senate Internal Security Subcommittee and, as you
suggest, to Mr. Robert E. Kintner, president of the American Broadcasting Co.

Please do not hesitate to call upon me for any further aid I may render your
endeavors.

W^ith my personal good wishes, I am
Sincerely yours,

/S/ James O. Eastand,
Chairman, Internal Security Suhcommittee.

June 26, 1956.
Hon. John Foster Dulles,

The Secretary of State, Washington, D. G.
Dear Mr. Secretary : I am transmitting herewith, for whatever action you
can take to supplement your actions in the past on behalf of Americans still
held in occupied China, a copy of a letter which I have received from Mr. Joseph
B. Meegan, executive secretary of Back of the Yards Neighborhood Council,
together with a copy of my reply.
Sincerely yours,

James O. Eastland,
Chairman, Internal Security Subcommittee.

Department of State,
Washington, August 25, 1956.
Hon. James O. Eastland,
United States Senate.
Dear Senator Eastland : The Department regrets its delay in acknowledging
your letter of June 26, 1956, with which you enclosed a copy of a letter addressed
to you by Mr. Joseph B. Meegan, executive secretary, Back of the Yards Neigh-

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3149

borhood Council, 4600 South Ashland Avenue, Chicago 9, 111., and a copy of your
reply regarding the American citizens still in prison in Communist China.

The Department of State knows of the Freedom Crusade and the letter-writing
campaign to try to influence the Chinese Communists to release the 10 Americans
who are still being detained in Communist China. It is possible that the cam-
paign fostered by Father Rigney may serve a useful purpose in pointing out to
the Chinese Communists that the American people, as well as this Government,
are outraged by their failure to fulfill their commitment.

When Mr. Meegan and Father Kigney visited the Department in April to ex-
plain their campaign they were assured that the United States Government is
continuing to press the Chinese Communists to release the Americans whom they
are holding in violation of their promise made publicly at Geneva on September 10,
1955.

Sincerely yours,

/s/ RoDERic L. O'Connor,

Acting Assistmit Secretary
(For the Acting Secretary of State) .

June 26, 1956.
Hon. Henry Cabot Lodge, Jr.,

The Repref<c7itfttive of the United States of America to the United Nations,
If etc York, N. T.

Dear Mr. Ambassador: I am transmitting herewith, for whatever action you
can take to supplement your actions in the past on behalf of Americans still
held in occupied China, a copy of a letter which I have received from Mr. Joseph
B. Meegan, executive secretary of Back of the Yards Neighborhood Council, to-
together with a copy of my reply.
Sincerely yours,

James O. Eastland,
Chairman, Internal Security Subcommittee.

United States Representative to the United Nations,

New York, N. Y., July 2, 1956.
Hon. James O. Eastland,
United States Senate.
Dear Senator Eastland : Thank you for your letter of June 26, enclosing a
letter from Mr. Joseph B. Meegan about the continued detention of 13 Americans
by the Chinese Communists.

Since Mr. Meegan wrote I understand that two of these Americans have been
released. The State Department's efforts are continuing through Ambassador
Johnson at Geneva, to bring about the release of the remaining 11. I fully share
the sense of outrage which all Americans feel over the uncivilized behavior of
tne Chinese Communists in this regard, and will lose no opportunity to help in
any way I can toward their liberation.
Sincerely yours,

/s/ Henry Cabot Lodge, Jr.

INDEX

Note. — The Senate luternal Securit.v Subcommittee attaches no significance to
the mere fact of the appearance of the names of an infUvidual or an organiza-
tion in this index.

ACA. {See American Communications Association.) Pa&e

AFD-CIO 3129-3131

Agriculture, Department of (United States) 3139

American Broadcasting Co 3147, 3148

American Committee for Protection of Foreign Born 3147

American Communications Association 3130-3133, 3135, 3137-3143

Communist dominated 3140

"Kicked out" of CIO, 1950 3130

American Slav Congress 3147

Andrews Field 3139

Association of the Bar of the City of New York 3145-3147

Association of Western Union Employees disestablished by NLRB in 1939_ 3135

Attorney General's list 3146

"Attorney General's List, The", section of book. The Federal Loyalty secu-
rity Program 3145

Back of the Yards Neighborhood Council 3147-3149

Bar Association, New York 3145-3147

British delegation to the United Nations 3139

British Government 3138

Butler-Brownell Act 3142

Canada 3134

Canadian Government 3138

Canadian Government, Ottawa 3133

Chicago 3147, 3148

Chinese Communists 3148, 3149

Civil Rights Congress 3147

Clifeord. Rev. John William, S. J 3147

Commercial Telegraphers' (AFL^CIO) .3129-3132, 3142, 3143

Committee for a Democratic Far Eastern Policy 3147

Communists 3131, 3132, 3134, 3137, 3138, 3142, 3145-3147

Communist-dominated organization 3134

Communist-dominated unions 3131, 3134-3136, 3138, 3140

Communist Party 3131, 3133, 3134, 3138

Communist potential 3130

Congress 3136

Council on African Affairs 3146

CTU. (See Commercial Telegraphers' Union.)

Defense Department Signal Center, Fort Wadsworth 3130

Defense Production, Department of 3139

Digest of Current Communist Activities 3145

Downey, John Thomas 3147

Dulles, John Foster 3148, 3149

n INDEX

B Page

Eastland, James O 3147-3149

Ekimov, Mr 3129

Executive Order 9835 of 1947 3145

External Affairs, Department of 3133

FBI. {See Federal Bureau of Investigation.)

Fecteau, Richard George 3147

Federal Bureau of Investigation 3146

Federal Loyalty-Security Program, The (book) 3145

Floyd Bennett Field 3130

Fort Jay 3130

Fort Wadsworth 3130

Frank, Nelson 3137-3139, 3141

Freedom Crusade 3147-3149

French Cable Co 3143

Geneva 3149

Germany 3136

Governors Island and Fort Jay, Second Service Command 3130

Government circuits 3139, 3141

Government wires 3138

Gross, Rev. Fulgence, O. F, M 3147

Hageman, E. L 3129

National president, Commercial Telegraphers' Union, Western Union

division, AFI^CIO, Washington, D. C 3129

918 Dupont Circle Building 3129

Hard-core Communist 3133, 3138

Hitler 3136

Houle, Rev. John Alexander, S. J 3147

Hungary 3136

Interlocking Subversion in Government Departments 3130

Internal Security Act of 1950 3146, 3147

International Workers' Office 3146

Jefferson School of Social Science 3147

Jenner, Senator William E 3129

Johnson, Ambassador 3149

Joint Anti-Fascist Refugee Committee 3147

Kehoe, Joseph F., international secretary-treasurer of the ACA 3142

Kintner, Robert E 3147, 3148

Kuebler, Mrs. Hilda 3141

L
Labor Committee, Senate 3130

Labor Youth League 3147

Limestone, Maine 3139

List of circuits accessible to ACA members 3143-3145

Lodge, Ambassador Henry Cabot 3148, 3149

London 3134, 3137, 3139, 3143

Loring Air Force Base 3139

INDEX III

M Page

Mackensen, Paul J., Jr 3147

Marshall, Walter, president of Western Union 3140

Matthews, J. B 3145

McCanu, Robert E 3147

McCarthy, Rev. Charles Joseph, S. J 3148

McCormack, Rev. Joseph Patrick (MaryknoU) 3148

Meegan, Joseph B 3147-3149

Morris, Robert 3129

National Council of American Soviet Friendship 3147

National Labor Relations Board (NLRB) _ 3132, 3135, 3136, 3138, 3139, 3142, 3143
Naval Air Station, United States, at Floyd Bennett Field, Brooklyn, N. Y.__ 3130

Naval Shipyards, United States, Brooklyn 3130

Navy Coniuiunication Service, United States, 90 Church Street, New York__ 3130

New York 3130, 3132-3134, 3137, 3139, 3142, 3143

New York Port of Embarkation, Brooklyn 3130

New York Western Union workers 3138

NLRB. (See National Labor Relations Board.)

O'Connor, Roderic L 3149

Ottawa 3133,3139

Paris 3137, 3139, 3143

Pentagon 3133, 3139

Philadelphia 3130

Phillips, Rev. Thomas Leonard, S. J 3148

Pinger, Bishop Ambrose Henry 3148

RCA Communications 3130, 3131, 3143

RCA 3137

Red China 3147-3149

Redmond, Hugh Francis 3148

Rigney, Father Harold, S. V. D 3147-3149

Romanov, Tanya 3129

Rusher, William 3129

SACB. (See Subversive Activities Control Board.)

Sea Transport Station, Atlantic division. Army piers 1, 2, 3, and 4 3130

Selly, Joseph (president of ACA) 3139, 3140, 3142

Shop stewards 3132

Sourwine, Jay 3129

Soviet agent 3134

Soviet espionage 3133

Soviet Russia 3136, 3138

Stalin 3136

State, Department of 3129, 3134

Subversive Activities Control Board (SACB) 3135, 3136, 3142, 3146, 3147

Supreme Court 3135, 3136

Thirteen prisoners in Red China 3147, 3148

Tse-tung Mao 3148

United May Day Committee 3146

United Nations 3148, 3149

United Nations, British delegation to 3139

United States Information Agency 3139

IV INDEX

Page

Veterans of the Abraham Lincoln Brigade 3147

Wagner Act 3135, 3136

Wagner, Rev. John Paul 3148

Washington 3134, 3139. 3142

Western Union 3131-3135, 3137, 3140

Western Union Association 3135

Western Union Building, 60 Hudson Street, New York 3130, 3132, 3137

Western Union cable 3137

Western Union Cable Co., New York City 3130

Western Union Division (CTU) 3129-3131

Western Union employees, report by the ACA 3141

Western Union Telegraph Co 3130, 3132, 3137, 3139, 3142, 3143

Western Union telegraph workers 3130, 3131, 3138, 3140

Wilcox, J. L 3131, 3134, 3137-3139

Vice president in charge of employee relations. Western Union Tele-
graph Co 3137

Testimony of 3141-3149

t^l- DEPOSITORY /C>C50 Jjti

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

HEARINGS

BEFORE THE

SUBCOMMITTEE TO INVESTIGATE THE

ADMINISTEATION OF THE INTERNAL SECUEITY

ACT AND OTHEE INTERNAL SECURITY LAWS

OF TEtB

COMMITTEE ON THE JUDICIARY

UNITED STATES SENATE

EIGHTY-FOURTH CONGRESS

SECOND SESSION

SCOPE OF SOVIET ACTIVITY IN THE
UNITED STATES

OCTOBER 24 AND 30, 1956

PART 45

Printed for the use of the Committee on the Judiciary

UNITED STATES
GOVERNMENT PRINTING OFFICE
72723 WASHINGTON : 1957

Boston Public Library
Superintendent of Documents

JUL 2 5 1957

COMMITTEE ON THE JUDICIARY

JAMES O. EASTLAND, Mississippi, UAoirnion

BSTES KBFAUVER, Tennessee ALEXANDER WILEY, Wisconsin

OLIN D. JOHNSTON, South Carolina WILLIAM LANGER, North Dakota

THOMAS C. HENNINGS. JR., Missouri WILLIAM E. JENNER, Indiana

JOHN L. McCLELLAN, Arkansas ARTHUR V. WATKINS, Utah

PRICE DANIEL, Texas EVERETT McKINLEY DIRKSEN, Illinois

JOSEPH C. O'MAHONEY, Wyoming HERMAN WELKER, Idaho

MATTHEW M. NBELY, West Virginia JOHN MARSHALL BUTLER, Maryland

Subcommittee To Investigate the Administkation of the Internal, Secubitt
Act and Other Internal Security Laws

JAMES O. EASTLAND, Mississippi, Chairman

OLIN D. JOHNSTON, South Carolina WILLIAM E. JENNER, Indiana

JOHN L. McCLELLAN, Arkansas ARTHUR V. WATKINS, Utah

THOMAS C. HENNINGS, JR., Missouri HERMAN WELKER, Idaho

PRICE DANIEL, Texas JOHN MARSHALL BUTLER, Maryland

ROBERT MORRIS, Chief Counsel

J. G. SODRWiNE, Associate Counsel

William A. Rdshek, Associate Counsel

Benjamin Mandkl, Director of Research

CONTENTS

Witness : Page

Andriyve, E 3175

Bialer, Seweryn 3151

Rastvorov, Yuri 3169

III

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

WEDNESDAY, OCTOBER 24, 1956

United States Senate,
Subcommittee To Investigate the Administration
OF THE Internal Security Act and Other Internal
Security Laws, of the Committee on the Judiciary,

Washington^ D. G.

The subcommittee met, pursuant to notice, at 12 : 55 p. m., in room
318, Senate Office Building, Senator William E. Jenner presiding.

Present : Senator Jenner.

Also present : Kobert Morris, chief counsel ; J. G. Sourwine, asso-
ciate counsel; William A. Kusher, administrative counsel; and Benja-
min Mandel, director of research.

Senator Jenner. Mr. Karski, will you be sworn ?

Do you solemnly swear that you will truthfully translate the
questions and answers put to the witness, so help you God?

Mr. Karski. Yes, Senator.

Mr. Morris. Wliat is your name?

Mr. Karski. Jan Karski, professor, Georgetown University.

Mr. Morris. You have acted as interpreter for Mr. Bialer; have
you not ?

Mr. Karski. Yes, sir ; I did.

Mr. Morris. All right.

Now, Senator, will you swear in Mr. Bialer ?

Senator Jenner. Do you swear the testimony given at this hearing
will be the truth, the whole truth, and nothing but the truth, so help
you God ?

Mr. Bialer (through interpreter) . I do.

TESTIMONY OF SEWER YN BIALEU (THROUGH JAN KARSKI,

INTERPRETER)

Mr. Morris. Your name is Seweryn Bialer.

Mr. Bialer, the Senate Internal Security Subcommittee, in connec-
tion with its activities in trying to understand the full nature of
Soviet activity, Soviet and Communist activity here in the United
States, is particularly interested in knowing something of the develop-
ments that are now taking place in Poland.

Among other things, we noticed that the American Communist
Party, through its official organ, the Daily Worker, is applauding the
activities of Gomulka and other Polish Communists who are taking
what appears to be an independent course of action from the Soviet
Union.

3151

3152 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

Now, because events abroad and events here in the United States
are so closely interrelated, as you well know, we would appreciate, for
our official record and under oath and based on your own long
experience in the Polish Communist Party that you have related to
us, we would like your interpretation of these events.

Off the record.

(Discussion off the record.)

(Whereupon, at 1 p. m., the subcommittee recessed.)

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

TUESDAY, OCTOBER 30, 1956

United States Senate,
Subcommittee To Investigate the
Administration of the Internal Security Act

AND Other Internal Security Laws, of the

Committee on the Judiciary,

WashiTigton^ D. C.

The subcommittee met, pursuant to notice, at 2 : 55 p. m., in the
caucus room, Senate Office Building.

Present: Robert Morris, chief counsel; J. G. Sourwine, associate
counsel; William A. Rusher, administrative counsel; and Benjamin
Mandel, director of research.

TESTIMONY OF SERWYN BIALER— Resumed

Mr. Morris. Mr. Bialer, I think you have made clear to us that
there are two forces at work in Poland today. One is a force gener-
ated by the people and the workers for a liberalization, a relaxation
of the heavy control on the part of the Soviet-controlled Polish Com-
munists that has existed.

That is one trend ; is it not ?

Mr. Bialer. Yes, basically, although I would add to it that this
force wants not only a liberation from the Soviet Union but is also
basically anti-Communist.

Mr. Morris. And then you have also told us, have you not, of a
second force, and that is a force that operates within the Politburo
of the Polish Communist Party, which tends to bring the Polish Com-
munist Party more and more away from the tight central control that
has existed in the past ?

Have I stated that accurately ?

Mr. Bialer. Basically, yes ; but I would add too that it is not only
within'the Politburo but within the whole party.

Mr. Morris. The international party, you mean ?

Mr. Bialer. The Communist Party in Poland.

Mr. Morris. From the Politburo down?

Mr. Bialer. Yes ; down.

Mr. Morris. At the present time, Mr. Bialer, which is the predom-
inant of those two forces ?

Mr. Bialer. I think that the direct cause of the present situation
in Poland was the first cause, the popular movement, the popular feel-
ing ; and because of the strength of that force the present party lead-
ership could emerge.

3153

3154 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

Mr. Morris. And you have testified to that effect in your previous
appearances before the Internal Security Subconunittee, have you not?
Mr. BiALER. Yes.

Mr. Morris. And since your last appearance you fiind that the trend
which you forecast at that time is becoming even more pronounced ?

Mr. BiALER. Yes ; except that I was not so sure that Gomulka would
come to power.

The fact that he came to power means a basic change in the reality
in Poland.

Mr. Morris. Since your last appearance, then, the change that has
emerged has been the growth of Gomulka ?

Mr. BiALER. Yes. The most important event which took place in
Poland in the last month was that the popular movement became even
stronger and gave opportunity to Gomulka to get power within the
Communist Party.

Mr. Morris. Now, Gomulka has always been a hard-core Stalinist
Communist, has he not ?

Mr. BiALER. I don't think one could say this. I think that in the
years 1945-48 Gomulka held views which later on were strengthened,
and those views could not be branded as Stalinist views.

At that time, in the years 1945^8, there was no possibility for his
views to be implemented.

Naturally, basically he was always a Communist, always he was for
dictatorship ; but on very many issues he held views which could not
be branded as Stalinist.

Mr. Morris. Now, I noticed the other day, Mr. Bialer, that there
was a reported phone conversation between Mr. Khrushchev and Mr.
Gomulka on relations between the Polish Government and the Soviet
Government. Isn't it an unusual development that they should have
released the text of a phone conversation between Mr. Khrushchev and
Mr. Gomulka ?

Mr. Bialer. It is a very extraordinary event and I understand it in
this way : Gomulka, realizing the anti-Soviet feelings among the
Polish masses, wanted the Polish masses to learn about the tenor of the
conversation, knowing that it would strengthen his prestige and power.
Mr. SouRWiNE. Isn't it equally possible that Mr. Khrushchev would
have had to assent to the making public of this telephone conversation
before it would be done ?

Mr. Bialer. One should not exclude any possibility, although as far
as I know this is basically against the rules, which are that this kind of
relation between the Commmiist leaders should not be known to the
general public.

Now, the second proof is that, although the text of the convei'sation
became known in Poland, it was withheld from the Soviet public
opinion.

Mr. Morris. You have prepared for us, have you not, Mr. Bialer, a
short paper, 9i/^ pages of which I would like to make reference to at
this point, and that is a sort of a sketch, a historical sketch of events
leading up to the present crisis ?
Mr. Bialer. Yes, sir.

Mr. Morris. I would like to place in the record at this time this
paper which I now show you, and let it appear at the conclusion of
the witness' direct testimony.

You have prepared this ; have you not ?

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3155

Mr. BiALER. Yes, sir.

Mr. Morris. Mr. Bialer, I know that you are uniquely qualified to
testify about events in Poland because of your long experience in
Poland, but in view of the fact that you also are a student of Com-
munist affairs generally I wonder if at this time you would be will-
ing to answer a few questions on the Hungarian situation ?

Mr. Bialer. If I can, naturally it would be my pleasure to.

Mr. Morris. In your opinion has there been a trend developing in
Hungary similar to that you have outlined in this paper here today ?

Mr. Bialer. Yes, I am convinced that it applies also to the situ-
ation in Hungary, and this I say on the basis of my acquaintances
with the Hungarian Communist leaders, as well as my status with
respect to present reality.

Naturally, the basic difference is that in Hungary at the last mo-
ment, in the last days, a bloody revolt took place which did not
take place in Poland.

And, of course, I would like you to keep in mind the basic
difference between the two situations. I would put it in this way :
In Poland the present Commimist leadership got to power half an
hour before the revolt was to take place, and in Hungary half an
hour after the revolt actually did take place.

If Gomulka had not taken power m Poland exactly at that time,
most probably the same revolt would have taken place in Poland.

Mr. SouKwiNE. Are you saying, in other words, that the accession
of Gomulka prevented a revolt in Poland, whereas the accession of
Nagy followed a revolt in Hungary ?

Mr. Bialer. Yes, sir, exactly.

Mr. Morris. Therefore, it would seem to have the effect — the im-
position of the Gomulka government on the one hand and the Nagy
government on the other hand were really attempts to put, as it were,
a stove lid on this uprising that has taken place ?

Mr. Bialer. Yes; both Gomulka and Nagy, identifying them-
selves with the anti- Soviet feeling among the masses, were a form
of isolation against anti-Communist movements.

Mr. Morris. And in the case of Hungary the thing got completely
out of hand ; did it not ?

Mr. Bialer. Yes; in Hungary Nagy came to power too late, you
might say.

Mr. Morris. In other words, this device of keeping the lid on a
popular insurrection succeeded in Poland and did not succeed in
Hungary ?

Mr. Bialer. I would say that in Poland it worked and in Hun-
gary apparently it did not.

Mr. Morris. Do you feel that this trend, which you have told us
about in your previous testimony and again here today, as well as
in this short paper that you prepared for us — would you say that
this trend is still operative in Poland ?

Mr. Bialer. Yes. You mean independence from the Soviet
Union ?

Mr. Morris. No. By "this trend" I meant this drive on the part of
the people to demand a certain amount of freedom and relaxation of
controls.

Mr. Bialer. Not only am I sure, that this continues, but it will gain
in strength in time because there are better conditions for it.

72723— 57— pt. 45 2

3156 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

Mr. Morris. Do you mean that as more relaxation of controls is
granted to the people, the stronger will be their demands?

Mr. BiALER. Yes, sir, you are correct.

I would add this, that the Polish people for the first time have
learned that they are strong, that they can win certain of their de-
mands.

Before they were as if asleep under the Communist terror. Now
they are as if awakened.

And I do believe that, once being awakened, they will continue this
process.

Mr. Morris. Now, do you feel that this device of, as it were, a stove-
lid government, used to keep this thing under control, was something
initiated by Khrushchev ?

Mr. Bialer. I don't think so.

As far as I understand the situation it worked this way : Indeed
after the death of Stalin, Khrushchev and the Soviet leadership
wanted certain minor changes which would deceive world public
opinion as to the nature of the Soviet methods. However, once they
started this, it got entirely out of their control and assumed such pro-
portions that I could not identify the present state of affairs with their
original initiative.

I would go further. I think that the present Soviet leadership will
have to recognize the developments in Poland and in Hungary, al-
though certainly it will not mean that they are satisfied with it.

They realize that they are too weak to put it down.

Mr. Morris. But they do have, as it w^ere, the situation under control
in Poland?

Mr. Bialer. I don't think that they have the situation in Poland
under control presently.

I believe that Gomulka has under his control, at least partially, the
situation in Poland. This does not mean, however, that it is the
Soviet leadership which has it.

Mr. SouRwiNE. If, as you have described them, botli Gomulka and
Nagy are a sort of i)rophylactic against freedom, or as Mr. Morris has
said, stove lids on the flame, if Khrushchev did not apply the prophy-
lactic or put on the stove lid who did?

Mr. Bialer. Well, I would put it this way : I think that the leader-
ship of the Polish Communist Party, all the leadership of the Commu-
nist Party — and for that matter also of the Hungarian Communist
Party — do not like Gomulka or Nagy. They probably consider them
as precisely stove lids, in tliis situation which has emerged in Poland.

However, they are forced by circumstances to recognize them.

Mr. SouRWiNE. They are using them for their own purposes, in
other words ?

Mr. Bialer. Yes. These people, they pushed Gomulka in order
to save the situation, but they do not have any intention of indentify-
ing themselves with what Gomulka really is.

I consider that Gomulka really wants more freedom from Russia
presently.

Mr. SouRwiNE. You make a distinction between wanting freedom
and wanting freedom from Russia ?

Mr. Bialer. Yes, yes, I think this is a big difference. Wliat is
freedom? It is freedom from communism.

Mr. SouRWiNE. Go ahead and explain that a little bit, will you ?

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3157

Mr. BiALER. Gomiilkii is a (^onniuiiiist, but lie wants the Polisli
Communist Party to be as much independent from tlie Soviet Union
as possible. He wants to be a master in his oAvn house and he wants
his party to be a master in their own house.

However, this I would dif!'erentiate from givinjj freedom, since
he wants commmiism to dominate in Poland, and this means the
dictatorship of one Conununist Party in Poland.

Mr. SorR"\viNE. AVould you say that Gomulka is interested in Polish
freedom from Soviet domination if it does not also involve power for
Gomulka ?

Mr. BiALER. Yes; 1 think that such is the reality, such was the
development of events.

Althou<zh he came to power originally thanks to the support of the
Soviet Union, finally he assumed the position which you defined.

Mr. SouRw^NE. I am afraid 1 don't have an answer that I under-
stand yet.

I am trying to find out if you think that Gomulka divorces his own
ambition for powder from his desire to have the Communist Party
of Poland sever its ties with Russia.

Mr. BiALER. Yes, sir ; this is as you say.

Mr. Morris. Now, Nagy, the counterpart of Gomulka in Hungary,
is the one who called on the Red army to keep himself in power.

Would not that reflect a relationship, if Nagy is the counterpart
of Gomulka, which would be slightly at variance with w^hat you
have told us today ?

Mr. BiALER. Well, I don't think that I am at variance with my
previous statement, since I maintain that the problem concerns only
power, and both Gomulka and Nagy are prepared to use Soviet
forces in order to maintain themselves in power.

The best proof is that in the years 1945-48 it was exactly due to
Soviet support that Gomulka got power in Poland.

But there is a difference of circumstances in Hungary and Poland.
In the case of Nagy, in order to obtain power, he needed Soviet
forces. Gomulka had a different situation. He got power without
the help of Soviet forces, and having actually achieved power he does
not need any more the Soviet forces.

Mr. SorRAViXE. In other words, you are saying that the mainte-
nance of themselves in power is the miportant thing, the most im-
portant thing to both of these men ?

Mr. BiALER. Yes, undoubtedly.

"WHiatever differences they have with the Soviet Union, they have
one thing in common : it means maintenance of communism.

Mr. Morris. Have you read the statement of Tito which is reported
in the morning papers today ?

Mr. BiALER. May I see it ?

Yes, I read it before.

Mr. Morris. It would appear from the account of that statement
which I have just shown you, Mr. Bialer, which appeared on page 20
of the New York Times for October 30, 1956, that Tito is opposed to
the uprisings in Hungary.

Mr. Bialer. I understood it the same way.

Mr. Morris. The basis of his opposition to the developments in
Hungary is that the developments, such as they were, in his opinion
damaged socialism in general, as well as peace among nations.

3158 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

Mr. BiALER. Yes. As far as I understood Tito's statement he con-
demns everything which took place in Hungary which would under-
mine the position taken by Nagy, which means everything that would
undermine basically the Communist regime in Hungary.

Mr. Morris. Excuse me, did I understand you to say that Tito's
position would be opposed to Nagy's position ?

Mr. BiALER. No ; Tito would oppose in Hungary all those forces
which wanted to undermine basically the Communist regime as such—
the national Communist regime.

Mr. Morris. But to speak concretely, the Nagy regime?

Mr. BiALER. The Nagy regime.

Mr. Morris. So that anything that went further than the imposi-
tion of the so-called stove-lid government of Nagy in Hungary was
the thing that drew opposition from Mr. Tito ?

Mr. BiALER. As I understand it, Tito realizes that in Hungary
there are two streams— one powerful stream supporting a national
communism independent from the Soviet TTnion, and represented by
Nagy, and the second stream which opposes communism as such.

Tito supports the first force, which means national communism
headed by Nagy, and violently opposes all other forces which would
like to strive against communism.

This is what I understood from Tito's statement, (^f course, I do
not know if from one article we can understand the position of Tito
as such, basically.

Mr. Morris. Yes, I understand the limitations, but Tito in the state-
jnent refers to "reactionary elements that use the present events for
their antisocial aims. By those he means the people that would upset
Nagy ?

Mr. BiALER. That is the second stream I was speaking about, against
which Tito pronounced himself.

Mr. ISIoRRis. Yesterday afternoon I had a session with a person
who was a very important Soviet official but who defected from the
Soviet organization. His defection, however, considerably antedates
yours. But he did know on a very personal basis all of the top
functionaries of the present Russian Communist Party. He interprets
the present developments in this fashion. May I present his views
and get your comments on that ?

He believes that the top councils of the Soviet Union decided that
they would be more effective in their efforts to control the whole world
if they use the device of independent Communist Parties. By using
independent Communist Parties they would be able to carry on their
insurrectionary work in the various countries of the free world without
the stigma of Moscow. And it is his contention that a very small
group being privy to this plan could carry on and accom]i]ish the
present results, whereas at the same time the rank and file of the party
would not necessarily have to be privy to that development.

I wonder, Mr. Bialer, if you could give your view, in juxtaposition
to this other view ?

Mr. BiALER. I find one weakness in this type of s]ieculation. This
speculation takes it for granted that a kind of a plot in an elite group,
a small number of ])eople, can decide the issue, while as we know the
masses came into play presently and of course the masses complicated
entirely the picture.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3169

It does not work as that small group of people planned it to work,
even if it was true that they did it.

However, I must stress that the gentleman is absolutely correct
when he says that such were the plans of the Soviet leadership.

I remember in 1954, w^hen still I was in Poland, that the official line
was: Poland is an independent country. That means that we were
required to say to the world that Poland is an independent country.
However, the difference is that at that time Poland was not an inde-
pendent country, while today there are certain changes in Poland.

So, I would conclude in this way: Whatever were the plans — and
plans there were, as that gentleman told you — the reality developed
in a different way. It got out of control. The masses entered the
picture and now the situation is not as planned but as the masses
dictate.

The strategy of Khrushchev basically wanted events to go in this
direction, but the reality got out of control, new factors entered the
picture, and things w^ent much further than they wanted them to go.

This is why I doubt if what is actually happening behind the
Iron Curtain could be called Soviet strategy.

Mr. Morris. We had an instance last week of a refugee, a Polish
refugee, returning to Poland, and we noticed that the arrangements
for that were handled by the Soviet Embassy here in Washington.

That situation, Mr. Bialer, points up the primary concern of the
Internal Security Subcommittee with these developments. It is of
prime importance to the subcommittee that we analyze the various
activities of the officials in the Plungarian Legation, the Soviet Em-
bassy, and the various delegations to the United Nations-

Don't you think that the fact that the Soviet Union handled the
redefection of a Polish immigrant was of some significance at this
time?

Mr. Bialer. I couldn't give you, sir, any specific answer, since I
I would have to know who the immigrant was, what the circumstances
were, and so on. Perhaps such a procedure was necessary.

I have not enough material to pronounce myself one way or the
other.

Mr. Sourwine. I should like to ask this: First, as a preliminary
matter, we all know it's very difficult to know what a political reality
is. If Mr. Gomulka does something which we presume Mr. Khru-
shchev wants him to do, we never know whether he does it because Go-
mulka wants to do it or because Klirushchev wants Gomulka to do it.

On the other hand, there is a reality which we can look at, and that
is the matter of military control. The Soviets control the military
in Poland, and they control the military in Hungary. Their own
forces are in Hungary. They have Kokossovsky in charge of the
Polish Army. They massacred the flower of the Polish Army at
Katyn.

The purpose obviously, or a major purpose, at least, was to emascu-
late the Polish Army as a Polish force and to create a situation in
which Soviet officers would be in the top echelon. And that situation
has been created.

Now, would you agree that as long as the Soviet Union controls the
military with its own forces or, as in the case of Poland, with its own
officers, there can be very little freedom in that nation from the Soviet
Union, in the last analysis?

3160 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

]Mr. BiALER. Yes, I understxind your reasoning, sir, where yon are
chiving- at, and I am in full agreement with you.

But the situation in Poland, as I see it presently, does not respond
to your description. Rokossovsky is no longer minister of defense
and commander in chief of the Polish Army. He left. He left yes-
terday. His successor is dehnitely Gomulka's man.

The control of the Polish Army is no longer exercised by a man who
is outside of the Polish Communist Party, as was Rokossovsky; it is
directly under the leadership of the Polish Communist Party.

As far as we can suppose from Gomulka's statements, the so-called
Soviet experts are in the stage of leaving Poland.

Mr. SouRwiNE. You say that Roko.ssovsky is no longer connnander
in chief of the army (

Mr. BiALER. No.

Mr. SouRwiNE. Who took his place ?

Mr. Bialj:r. Bordzilowski, and above all Spychalsiki, both Go-
mulka's supporters.

Spychalski was in jail several years for anti-Stalinism and Bord-
zilowski is a genuine Polish general — well that word "genuine" — I
do not remember now exactly his past, but I am sure I could put it
this Avay : he is not a Soviet general.

Mr. SouRwaxE. Would you say that this presages the withdrawal of
the Soviet officer corps in the Polish Army and the turning over of
top command throughout the army to Polish officers ?

Mr. BiALER. I am deeply convinced of this.

Mr. SouRwiNE. If that is done what would you say it means?

Mr. BiALER. I interpret it this way : that indeed Gomulka and his
followers want a genuine internal independence from the Soviet Union
and want to have full control of the Polish armed forces themselves.

Mr. SouRwiNE. In the same vein, do you foresee the withdrawal of
Russian armed foi'ces from Hungary?

Mr. BiALER. I think that this is more than probable.

Mr. JSIoRRis. At any rate, a gage of your view will be whether or
not there will be an early evacuation of Soviet forces from both those
countries, will it not?

Mr. BiALER. I didn't understand.

Mr. Morris. A gage of your interpretation will be whether or not
there is an early withdrawal of Soviet forces from those two countries ?

Mr. BiALER. We are speaking about Hungary and Poland now?

As far as Poland is concerned, I do not believe that the Soviet diyi-
sions will be withdrawn from Poland.

But I believe that the leadership of the Polish Army will be taken
hy the Polish Communists.

As far as Hungary is concerned, it seems to me that the Soviet forces
will indeed leave Hungary.

As for the degree to which the reality proceeds as I thought, I re-
member around 1 week ago there was a general conviction here that
Rokossovsky would be Minister of Defense. I was stating publicly
that he would not l)e Minister of Defense, that they would liquidate
liim completely. And it happened yesterday. Although I must say
that I did not foresee that the process would take place so soon. I
thought that it would take place 3 months after the general elections,
which are supposed to take place in January. Well, it took plac€ yes-
terday.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3161

;Mr. MoKius. Thank yon very nnich, Mr. Bitiler.
Thank yon, Professor Karski. for assisting ns once again.
(Wliereupon, the subcommittee adjourned.)

(The portion of Mr. Bialer's statement phiced in the record by Mr,
Morris at p. 3154 appears below :)

Development of Events

The begiuuings of the most recent events in I'olaud are t<j be found in the
second half of 1J>.")3. The development of events during the years lU'tS-^Ai can
be divided into the following periods :

First period: Second half of 1953 until the end of 1954

During this period, discussions within the Polish United AVorkers' Party
(PZPR) began, regarding errors in economic policy and, above all, the police
methods of ruling the party and the country. These discussions were not widely
made public. There were not even mass discussions within the party. The party
leadership was not personally attacked. The party leadership, following the
example of the Soviet Union, began limiting the power of the secret police.
Even in this period these limitations were greater in Poland than in Russia.

Second period: The end of 1954 until the hegimiing of 1956

This period saw the ideological crisis within the party develop with great force.
Above all, this encompassed the party intelligentsia. The discussions in the
Party Activ began to develop even at official meetings. The voices of criticism
began to reach the press. The criticism was very frequently directed personally
against individuals from the party leadership. The power of the security ap-
paratus lessened even more. To a great degree it became isolated from the
party itself, where the concealed aversion to the security apparatus began to
break out to the surface. The party leadership was forced under the pressure
of the Party Activ on the highest levels to declare democratization and a change
in policies, but it retreated, only step by step and began to introduce these
changes into life only with great delays and inconsistencies. Frequently the
attempts made by the party leadership to restore calm to the Party Activ were
unsuccessful.

During the period 19-5.5-56, opposition to the party leadership grew significantly.
Within the party, the Party Activ achieved a rather large measure of freedom of
activity in comparison to Russia and the other satellite countries — this despite
the wishes of the party leadership. The following convictions resulted in the
Party Activ :

Either Rusisa takes a serious step ahead, on the road to de-Stalinization. and
in the meantime that which has already changed in the party in Poland be
sanctioned and develop further, or else nothing will change in Russia and in
the meantime there will be a rightist-nationalist deviation in the Polish party.
It should be stressed that both in the first and in the second period, the movement
against the party leadership, and in part, against the Soviets, embraced in a mass
fashion only the Party Activ and, above all, the party intelligentsia. The
party masses did not emerge from their lethargy and the overwhelming portion
of the bureaucratic party apparatus continued in its practical work forward,
however, even to a lesser extent than was postulated in the speeches of the old
leaders of the party. The people just began to feel certain changes in the situa-
tion. Most of all they began to become less afraid — this because of the great
lessening of police terror. They, however, were still distrustful of these changes.
They saw no conditions permitting action and they did not know how to over-
come their many years of silence. The crisis which was developing within the
party was concealed from the people by various means.

Third period: From the 20th Congress of the Communist Party of the Soviet
Union until June 195S

Krushchevs anti-Stalinist campaign which developed in a controlled, predeter-
mined manner in the Soviet Union, evaded the control of the leadership in
Poland. The internal party crisis broke through to the top and encompassed the
entire party. Bierut's absence increased the crisis. The chief force in the
party stepping out against the leadership continued to be the party intelligentsia.
For the first time, however, in the whole post-Stalin period the masses began to

3162 SCOPE OF SOVIET ACTIVITY EST THE UNITED STATES

move. The distressing economic situation which resulted from the 6-year plan
and the frequent promises of improvement after Stalin's death was especially
felt as the police terror was fundamentally weakened.

Fourth period: June 1956 to October 1956

At the Eighth Plenum of the Central Committee of the party in October 1956,
the Politburo presented its resignation to the Central Committee. Personnel
changes in the Politburo were not accomplished through the removal of certain
members and co-opting new ones, but in the form of removing the existing
Politburo and electing a new one in its entirety. This is a fact of great im-
portance, characterizing the situation which unfolded in Poland from June to
October 1956. The form in which the election of the new Politburo was ac-
complished is unheard of. With this it should be remembered that a party
congress is to be held in March. Hence there was the possibility of a painless
evolutionary changing of the Politburo. The change was accomplished, how-
ever, in the severest form. This in reality rules out an evaluation of these
events which would state that this was a predetermined plan. This was a
change resulting from a struggle and a critical situation.

What forced the Politburo to a collective resignation — in other words, what
developed in the period from Jime to October 1956? It appears that the fol-
lowing were the factors :

(o) A basic undermining, and in many aspects, loss of control by the party
over life in Poland : The most active strata of nonparty individuals ceased being
afraid. The Poznan events were only a small example of the tremendously ex-
plosive popular sentiment which arose in connection with political and economic
matters, and was approaching the point of explosion. The hatred of the Polish
people existed even in past years but, for the first time, conditions arose which
threatened its explosion. The decline of the authority of the State and of the
leadership of the party among the people on the basis of the bankrupt policies of the
leadership during the past 10 years, the weakening of terror as well as irresolu-
tion in its present policies, was tremendous. It appears that this was the basic
fact, without which Gomulka's return as first secretary, in the fashion in which
it was accomplished, would not have been possible.

(6) The decline of the Politburo's authority in the party itself: The dis-
solution of party discipline had gone so far that the principle which is the con-
dition of the existence of the party, namely, the principle that, despite various
views, once resolutions were made they must be followed, was undermined
publicly. The dissolution of party discipline and the decline of the Politburo's
authority led not only to the fact that the control of the party slipped out of
the hands of the leadership but it also made the mastering of the situation
among the people unusually difficult. The party was no longer a well-oiled ma-
chine executing orders of the leadership against the people. If we speak of the
rank-and-file of party members, of whom the overwhelming portion was never
Communist but entered the party either under force or for economic gain or
for career purposes, then this mass of the membership diffused, so to speak,
among the people and lost its separate identity.

(c) The decided opposition against the party leadership on the part of the
party intelligentsia which, in many articles in the press expressed in reality a
vote of no confidence regarding the leadership, did not recognize its leadership,
and more important, passed from discussion to practical activity. The party in-
telligentsia transformed itself from being a connecting link between party lead-
ership and the party and the people, to a group separating the Politburo from
the party and nonparty individuals.

(d) There was lack of unity in the Politburo, divergence of opinion, lack of
a figure with sufficient authority and popularity who could unify the Politburo.
In such an intense period, the Politburo did not have a clear program of action
or a platform for change. The situation demanded— if everything was not to
disintegrate — a decisive program, even a Stalinist one, which with the aid of
terror could attempt to master the situation, or a program of far-reaching
changes which would prevent an outburst and would eventually permit the re-
covery of leadership within and beyond the party. In the meantime, the policies
of the party leadership during the period June to October was a policy of sta-
bilization. Hence, a policy which was not one in favor of withdrawal, but at
the same time one indecisive in regard to further developments. Hence this was
not a policy of real power. It appears that the wavering and lack of a platform
of action by the Politburo resulted among other things from divergence within
the Politburo, indecision, the burdens of the past and lack of strength in itvS va-

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3163

rious comptinents. Beyond this, even if some group or individuals in tlie Polit-
buro had a decisive program for change, perhaps one no different than the
present platform of Gonmlka, it is possible that they lacked authority to bring
about its realization.

(e) The lack of unity in the Central Committee and the decline of authority
of the Politburo in the Central Committee. The Central Committee could be
persuaded but it could be no longer dictated to. A part of the Central Commit-
tee stopped believing that the situation in Poland could be mastered by the
directorship of the tlien reigning Politburo.

(/) The actual situation in Poland and in the Soviet bloc had immense signifi-
cance. First, the crisis of the Polish economy and the political forms of ruling
Poland were revealed with great force. Secondly, the weakening of Soviet con-
trol and the decline of the authority of the Soviet leadership had developed to
the point where publicly announced orders by the Moscow dictators were some-
times disregarded (for example, Bulgauin's command, included in his speech
of July 22, 1956, in Warsaw) .

DYNAMIC FORCES BEHIND THE INCIDENTS IN POLAND

In the present situation in Poland, two dynamic forces led to the existing state
of affairs.

The first force is the active pressure exerted for the iirst time since the war
by large groups of people, especially factory workers and working and univer-
sity youth. The basic character of this pressure is anti-Soviet, favoring full
independence of Poland from the Soviet Union. It is also anti-Communist. It
should be stressed, however, that the anti-Soviet sentiment in Poland is of
greater strength than anti-Communist feelings. At the present time, the chief
enemy is the Soviet Union.

The second force is the pressure exerted by a large segment of the party
against the Soviet Union for the acquisition of independence from the Soviet
Party in internal matters. Its aim is greater freedom within the party in public
life and a serious reorganization of the economic structure of the country. The
main stress is on internal reforms. The question of separation from the Soviet
Union is only a necessary precondition for this.

The two dynamic forces came together and, in some cases, blended under the
impact of present incidents in Poland. For a certain period of time, their
interest became the same. In practice, a temporary alliance was concluded
joining both forces in the matter of gaining a greater measure of independence
from the Soviet Union. The degree to which both of these forces want independ-
ence from the Soviet Union is different. The reason why both of these forces
want independence from the Soviet Union is also different, but for the present
moment they have a common avenue of action.

The objectives of these two forces in internal matters are, generally speaking,
completely different, but again the direction of their activity has, at the present
moment, a number of common points. These are not opposed to the objectives
of the people, that is, the internal changes in the economy and the political life
which are desired by groups in the party who have come out in favor of changes.
The people do not want to stop at these changes, because they are opposed to
communism even if it is improved.

The two forces which were mentioned above are not isolated from each other.
They mutually react on one another. The principal directions of this reaction
could be described in the following manner :

The influence of the attitudes and activities of the people on the changes de-
sired by groups in the party depends primarily on the fact that, as to date, the
party is being forced in the direction of more responsible activity. Proposals are
put forth which go further than the party itself would want. This favors putting
forth at the lead the most radical elements in the party and in the leadership
who, without the existence of the first force, would never so easily have obtained
their present position and would not have so strong a position. As far as Go-
mulka is concerned, it would seem very unlikely that, without the existence of the
tremendous pressure of the first force, he could have aciheved his present position.
Hence, with the existence of this first force, he found support not only from
the side of his adherents in the party but also from the side of many opponents
who saw in him a lightning rod which could absorb the more threatening inci-
dents and could weaken the anti-Communist pressure of the first force. Paren-
thetically speaking, the difference between Hungary and Poland is based, among
other things, on the fact that in Poland Gomulka achieved power before the rev-

72723 — 57 — pt. 45 3

3164 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

olutionary outbreak in the capital and fulfilled to a large extent the role of a
lifrhtning rod. In Hungary, on the other hand. Imre Nagy was brought to power
in the course of the revolutionary outbreak and was incapable of mastering the
.situation. Beyond this, the influence of the first force results in the fact that
the party has a stronger position in dealing with Moscow. (This applies, above
all, to such a situation where the first force does not lead to mass anti-Communist
uprisings. )

The opposite influence of the activity and work of segments of the party who
desire change, on the activity and attitudes of the population is such that, if the
desired changes favored by elements of the party come to the fore and are suffi-
ciently radical, they will ameliorate the anti-Communist activity by the popu-
lation. This is for the short run at the present time. By placating certain de-
mands of the people and setting forth prospects of righting the political and eco-
nomic situation, they help neutralize the anticommunism of the first group or,
strictly speaking, defer its expression to the future. It seems, however, that
the long-range effect of deferring the solution of this problem, can be different in-
asmuch as it will embolden the first force and create a better climate for its
activity.

Inasmuch as in the present situation in Poland there occurred a temporary
alliance of both forces, it is certain that, together with this development, a
moment must come when the first force will press forv/ard and the second force
will not want to move ahead. And hence, the time will come when the perma-
nent contradictory interests outweigh the temporary coalescence of interests.
It seems that, given the situation which now obtains, it cannot be said that there
must come at this moment a stoppage of further changes by the party. Under
the constant pressure from the bottom and in strengthening the rightist forces
in the party, it is possible that there will be an evolutionary development which
will transform Poland into a country of ever-increasing elements of real
democracy.

It appears that for the most desirable development of events in the future,
that is, such which could harm a retrogressive trend and simultaneously press
the leaders continuously forward in the direction of change, it would be necessary
to have a sitiaation where the uprising of the masses would be a primary poten-
tial threat but that the movement of the masses would take a peaceful form but
in general. The following are a few of these views :

When one speaks of Gomulka's views in this period, a very important factor
must be considered, namely, that those views were in reality just forming and
absolutely not yet fitted into some kind of finished system. He did not yet
state them in their entirety or, all the more, introduce them into life, nor, I am
convinced, did he think them through himself. The entire period of his power
in the party falls in the years of a fight for power, and building the very bases
of Communist rule in Poland. It was only the last period of his leadership (the
second half (»f 1947 and the first half of 1948) that there was a beginning in
deciding how the economic structure and the political system in Poland would
look. And Gomulka was not a theoretician. His views were primarily based
on practice. Even then, however, there were in his views clear elements of
contradiction not only with Soviet policies but also with the Communist ideology
in general. The following are a few of these views :

(a) Gomulka had a negative attitude in regard to the activity of the Com-
munist Party of Poland during the prewar period and to the activity of its
predecessor, the SDKPIL. This negative attitude resulted from liLs critical
evaluation of the fact that these parties subordinated the national Polish
prolilems to the affairs of the international Communist movement. Gomulka
thought that the policies of tlie Polish Socialist Party (an anti-Conununist
Party) were lietter in many regards, in any event, better from the point of view
of national considerations. He wanted to separate the party he directed from
the traditions of the Polish Communist Party. So far, that for the members
of the party he did not want to use the name, "Communist," since this in Poland
signified sometliing Muscovite, something anti-Polish. This was not just a
tactic with Gonmlka. His colleagues in the Politburo and Moscow agreed to
this in the early period because of tactical considerations since a battle was
being waged for power where no political trick could be neglected. But in
1947-4S, other leaders of the party and Moscow considered that it was time to end
this tactic, Gomulka, however, regarded this matter seriously and not just as
a tactic.

<h) Gomulka regarded the matter of alliance with Russia as a state prob-
lem. He explained the need for this alliance by the German question. He put
national considerations at the forefront in this alliance saying practically noth-

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3165

ing of a common-party ideology of both countries. The entire tenor of his
speeches and views was permeated with caution in a positive evaluation of Rus-
sia, mistrust in relation to Russia as well as constant stressing of the unsuit-
ableness of the Soviet example for Poland. In the meantime, the impression
arose that he was for Soviet troops in I'oland and for Russian intervention in
Poland since this was necessary for him to come into power, but that after
getting power he would gladly get rid of the protectors.

(c) Gomulka was an opponent of the collectivization of agriculture. He
did not feel this suitable given Polish conditions. He did not have any positive
program of transforming the Polish villages. He was concerned with retaining
the status quo. Apparently he was an opponent of violent measures in the in-
dustrial field. He attached many hopes to cooperatives in trade.

In short, it can be said that in his views Gomulka differed from his colleagues
in the leadership and in Moscow mainly in that he wanted to wield control over
Poland himself without submitting reports to Moscow, that he wanted to de-
velop communism in Poland in a more evolutionary manner, that he wanted to
avoid those forms in the building of conununism which in his opinion were con-
trary to the national Polish character. He wanted to feel less a leader of the
party and more a director of the state.

GOMULKA AND HIS STRENGTH IN THE POLISH PARTY AT PRESENT

Both the movement within the party which began after the death of Stalin
as decreed by Moscow, as well as the movement within the party which began
to develop at the same time, went much further than Moscow wanted and was
a kind of rebellion against the leadership of the party and the ideological
dictatorship of Moscow. It was not a Gomulkaite movement inside the party
and particularly in the Activ. The slogan "democracy" was not associated
with Gomulka whom the Activ knew to be a dictator from 1945 to 1948. The
attachment to Leninist tradition and outbursts of hatred toward Russia in con-
junction with the revelation of the Polish Communist Party affair (KPP)
(i. e., its destruction by Stalin after 1938) was also different than the attach-
ment by Gomulka to the traditions of socialism and his nationalistic anti-
Russian stand. As far as the leadership of the party is concerned, which to an
overwhelming extent retained its leading functions up to the present within
the scope of a Gomulkaite Politburo and government, it appeared a month or
two ago that it maintained the basic accusations leveled against Gomulka in
1948 and did not intend to return the leadership of the party to him. It is
doubtful that in the intervening 2 months that their basic views of Gomulka
and his past errors could be so generally revised that the party high command
would voluntarily relinquish to Gomulka the leadership of the party. I believe
that it is more sound to say that a majority of the party high command was and
is negatively predisposed to Gomulka and gave him power under the pressure
of a threatening situation, of their own irresolution and the conviction that he
is capable of mastering the situation. It appears that the initiators of this move
was that more clever (or perhaps that supporting) group of the leadership who
even before the Plenum (Ochab and Cyrankiewicz) had already come to an
agreement with Gomulka and in this way saved themselves with the rest. How-
ever, it also appears likely that Moscow was warned by the stubbornly Stalinist
part on the party leadership. It therefore appears that in the party leadership
and present setup Gomulka has more enemies and wavering supporters than
decided friends. This situation will however probably change.

First. Gomulka already has introduced some of his people into the Politburo
and central committee, for example, Loga-Sowinski, Kliszko, and Spychalski.

Second. It will be easier for the Polish Socialist Party portion of the party
leadership to work with Gomulka than with the former leadership. They have
more points in common in the past as well as now.

Third. I doubt that the majority of the present members of the leadership,
who were simultaneously favored in the years 19.50-.55, will long remain in the
leadership. Gomulka has already proposed the creation of an impartial com-
mission that will occupy itself with an examination of who is responsible for the
the crimes of the past; that is, crimes not committed by Gomulka.

Fourth. In March there is to be a party congress. Gomulka, who at the
present time wields enormous authority and power, will undoul)tedly utilize this
congress for selecting a central committee favorable to himself.

As far as the Party Activ and the party intelligentsia are concerned, it appears
that while supporting the main points which he accepted in his policy speech

3166 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

(independence from Russia, putting a brake on collectivization, production of
consumer goods), they are not tied to Gomulka but approach him with many
reservations. The main strength of Gomulka is the basic party organizations.
It appears that his support here is enormous. This also applies, so it would
seem, to the workers, youth, and military organizations. Their attitudes differ
from the feelings of the people primarily, and sometimes only in that they want
the party to continue to rule in Poland. For that reason their support of
Gomulka will most probably continue as distinct from support of the people,
v/ho want independence from the Soviet Union, internal reforms, and are
simultaneously anti-Communist.

EVENTUAL CHANGES IN THE PRESENT VIEWS OF GOMULKA COMPARED TO 1948

At the VII plenum of the central committee of the party, 3 months ago, when
it was decided to reinstate Gomulka in the party, this was no doubt done on the
condition that he accept the existent political platform of the party. However,
Gomulka became the first secretary of the party despite the ruling of the VII
plenum without accepting the party line which was confirmed at that time by
the central committee and the politburo. From this first policy speech it is
evident that he considers as improper the resolutions of 1948 and 1949 which
condemned his position despite the fact that these resolutions are formally bind-
ing since they have never been revoked. Gomulka made it clear that he still
maintains the position he held then in matters to which Moscow and the Polish
central committee were opposed.

Second. Gomulka made it very clear that he considers the general party line
not only in the years 1948-53 but also the years 1955-56 (and hence from Stalin's
death until he (Gomulka) took power) as fallacious. This is at the same time
a condemnation of the slowness and half measures of the changes which were
accomplished in Russia since the death of Stalin.

Third. On the basis of Gomulka's first speech, it is difficult to estimate exactly
what his general line will be, that is, how far he has progressed in the views he
held in 1948. Such an estimate can only be made after the elections in January
and the party congress in March.

The following factors might be of primary importance in influencing the
difference in Gomulka's position and views as compared to his position and
views in 1945-48 :

In the yeai's from 1945 to 1948 Gonnilka ruled Poland under conditions of com-
plete Soviet control over the life of the country. This control hampered the
freedom of his moves and views. Presently, under conditions of basically
weakened or perhaps even severed direct Soviet control, Gomulka has a freer
hand to vent his views and bring them to life.

Second. The years 1945-47 were a period of struggle for power in Poland.
At that time it was a question of life or death for the Communist Party in
Poland. In such a period tlie differences of opinion between Gomulka and the
Soviet Union as well as the pro-Soviet Polish Communist leaders had to give
v/ay to the more important pressing problem of getting and retaining power.
The present period in this regard does not hamper Gomulka as it did then.

Third. After Gomulka personally experienced the full meaning of
Stalinism and the Soviet system. He went to prison. He had tlie incentive
and time to think through and examine tlie differences between Polish interests
and those of the Soviets and traditional Communist ideology.

Fourth. In 1948 Gomulka did not have any support in the party. The party
accepted his removal with hardly any resistance. At the present time Gomulka
has certain groups of activists who support him because of his views. He has
certain groups of activists who support him because of fear of the return of
Stalinism. At the same time, he has strong backing among the mass of rank-
and-file party members who for the first time in party history pulled themselves
out of their lethargy and bonds of party discipline. This strengthens the posi-
tion of Gomulka and should have the effect of making him stronger in his
demands.

Fifth. In view of the fact that in the years 1945-48 Gomulka fought against
the people, he did not have their support. At the present time however, he has
their support. Thanks to this support, above all, he was able to achieve the
position of ruler of tlie country. This support which at present is his strength
and trump, simultaneously limits liis freedom of movement and rather presses
him to a position of supporting tlie most far-reaching changes in internal policies
as well as in relations with the Soviet Union.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3167

.Sixth. lu the years 1945^8, Gomulka helped create the Stalinist system in
Poland. He himself later became a victim of this system. In coming to power
in 1956, Gomulka found a basically weakened and disorganized power of the
secret police, an awakened active public opinion, and full discussions in the
press. He rose to power on the wave of a general conviction tliat he will want
to further develop these beginning elements of change. It is doubtful if in these
conditions he will want or could return to such a system as he built in Poland
in 1945-48. All of these above factors rather press Gomulka in a direction
further differing from the traditional Soviet-Communist views than the views
lie held in the period 1945-48.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

TUESDAY, DECEMBER 18, 1956

United States Senate,
Subcommittee To Investigate the Administration
OF THE Internal Security Act and Other Internal
Security Laws, of the Committee on the Judiciary,

Washington^D.G.

The subcommittee met, pursuant to notice, at 3 : 35 p. m., in the office
of Senator William E. Jenner, Senate Office Building.

Present: Senator Jenner (presiding).

Also present : Robert Morris, chief counsel.

Senator Jenner. Mr. Rastvorov, do you solemnly swear the testi-
mony you are about to give will be the truth, the whole truth, and
nothing but the truth, so help you God ?

Mr. Rastvorov. I clo.

Mr. Morris. Senator, at the last appearance of ]Mr. Rastvorov be-
fore the Senate subcommittee, he told us in his testimony that he knew
Sergei Tikhvinsky, a member of the NKVD, an official whose job it
was, according to his own direct knowledge, to recruit Japanese pris-
oners into the Soviet apparatus and then send them back into Japan,
and at the time of his appearance he said Mr. Tikhvinsky had just
been appointed by the Soviet Government as the head of the official
trade mission to Japan and it was thought at that time that he would
be the Soviet Ambassador to Japan.

Now, from our point of view, it was an extremely important intelli-
gence development, that we have the spectacle of a man that trains
Japanese into Connnunist agents from among Japanese prisoners,
sends them back to Japan after they are trained, and then that he is
sent there as the head of a mission, so that he is in a foreign country
working with agents of his own organizing and training.

Xow, in following up the particular point, we noticed here last week
that the son of Prince Konoye died in a Japanese prison camp, and we
asked Mr. Rastvorov if he knew anything about that particular devel-
opment and he said he did, and we are asking him to give testimony
on that particular subject.

"\^niat do you know about the son of Prince Konoye ?

TESTIMONY OF YUHI EASTVOEOV

Mr. Rastvorov. The Soviet Intelligence Service had a very special
group organized in 1947, 1948, to recruit a number of Japanese prison-
ers of war held in prison camps all over the Soviet Union — —

Mr. ]\Iorris. Excuse me. What position did you occupy at that
time ? You were then in the Soviet Military Intelligence ?

3169

3170 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

Mr, Kastvorov. At that time I was an officer of the MVD. I my-
self was engaged in tlie recruiting of Japanese prisoners of war.

The Soviet Intelligence Service was interested in Japanese prisoners
who occupied important positions in their country, as I testified before.
All of those people were targets for recruitment. Among them were
several prominent Japanese, including the son of Prince Konoye.
Officers whom I know personally, for instance. Colonel Vashkin, par-
ticipated in the attempt to recruit him.

The son of Prince Konoye, in spite of the persistent attempts to
recruit him, did not collaborate, and refused to act as an agent of the
Soviet Intelligence Service in Japan.

Mr. Morris. There were oilers that he would be repatriated if

Senator Jenner. If he collaborated ?

Mr. Rastvorov. If he collaborated, but he would not. After they
failed in their recruitment attempt, they tried him and sentenced him
as a war criminal. I don't know what the sentence was, but he would
get a long term in prison.

Mr. Morris. How do you know that, Mr. Rastvorov ?

Mr. Rastvorov. I know it from people who were engaged in this
operation.

This man I mentioned, a Colonel Vashkin, participated in the at-
tempted recruitment of the son of Prince Konoye. I know Vashkin
personally ; when he was in Tok5^o I worked with him. He was chief
of the ]\IVD group in Tokyo, where he worked under the cover name
of Volgin.

Mr. Morris. And what was his cover assignment ?

Mr. Rastvorov. His cover assignment was chief of consulate of the
Soviet mission in Japan.

To continue, I learned from Vashkin and others that the Soviet
Government refused to free the son of Prince Konoye, and decided to
keep him in the Soviet Union in order to avoid revelation of all that
had happened to him in connection with attempts to recruit him. The
Soviets realized the reaction of the Japanese people and people of the
free world if Prince Konoye revealed his experiences, so he was sen-
tenced as a war criminal and, I assume, reduced to living conditions
which would shorten his life, following the principle that "Dead men
tell no tales."

Mr. Morris. That is an assumption on your part, that they delib-
erately shortened his life ?

Mr. Rastvorov. Yes, that is my assumption on this particular case,
based on my personal experience in the MVD.

Mr. Morris. Now, are there any developments since our last session
about Sergei Tikhvinsky.

Mr. Rastvorov. No; I don't know all the recent details about Tikh-
vinsky. I know only that he continued to stay in Tokyo in spite of
the fact that the Japanese knew his real assignment is to expand
Soviet intelligence operations in Japan, and to recruit new agents,
to replace those who were uncovered by my defection.

Mr. Morris. Now, Mr. Rastvorov, since your last testimony there
have been reports that Col, Gen. Serov, who I think you told us is

the ranking MVD officer now

Mr. Rastvorov. Yes ; the press announced the appearance in Hun-
gary of General Serov, chairman of the KGB, formerly called the
MVD. He was appointed chairman of the KGB after the arrest of

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3171

Beria, and since then has held this position. Previously, in 1943, he
headed the special task force which was engaged in the deportation
of national minorities in the Soviet Union from the Caucasus area,
such as the Kalmiks, Chichans, Ingushi, Crimean Tartars from their
homeland to the interior of the country, mainly to Kazakhstan.

Mr. Morris. In other words, in 1943 his assignment was to specialize
in mass deportations and mass relocations of populations 'i

Mr. Rastvorov. He was in charge of the operation.

Mr. Morris. How do you know that ?

Mr. Eastvorov. Because I participated myself.

Mr. Morris. With him ?

Mr. Rastvorov. Yes.

Mr. Morris. And what was his rank at that time ?

Mr. Rastvorov. At that time, he held the same rank, General, and
was deputy of the minister of MVD.

Mr. Morris. What was your rank at that time ?

Mr. Rastvorov. At that time I was a captain.

Mr. Morris. And you w^ere one of his assistants, and, therefore,
you knew ?

Mr. Rastvorov. No ; I was not one of his personal assistants. I was
a member of a huge group established for the deportations of national
minorities.

Senator Jenner. You were an officer in that?

Mr. Rastvorov. Yes.

Mr. Morris. And General Serov is now in Hungary ?

]VIr. Rastvorov. According to newspaper reports, which have been
confirmed several times.

Mr. Morris. Senator Jenner, the Internal Security Subcommittee
today took testimony from several Hungarians who have been in the
country less than a week, that they witnessed and experienced the ef-
forts on the part of the Soviet Union to effect extensive deportations
from Hungary to the Soviet Union, and in view of that development
and the reported arrival of General Serov there, we were particu-
larly interested in getting Mr. Rastvorov's testimony about this
specialty of Serov.

Mr. Rastvorov. For that particular job — to continue my state-
ment— after the successful deportation of the whole population from
one area to another he was awarded several decorations.

Serov also was head of a special group which was organized after
the defeat of Germany. The task of this group was to arrest and
deport to the Soviet Union so-called Fascist elements and anti-Soviet
persons. This also involved rounding up German scientists, especially
nuclear scientists, who now are helping them to build atomic weapons
in the Soviet Union.

For all of these operations he was decorated as a hero of the Soviet
Union.

Mr. Morris. And you know all of this from your own experience.

Mr. Rastvorov. From my own experience ; yes.

Serov was also in charge of the liquidation of rebel groups in the
Ukraine who fought against the Soviet regime during and after the
war.

I can add also that Serov was called the master of depoi'tation, be-
cause of his experience in this particular job. I also have assumed

3172 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

because of my experience as a former NKVD officer, that the Soviet
Government sent him to Hungary to liquidate revolutionary resistance
against the Soviets who dominate Hungary and would like to add
that special MVD divisions, called divisions of special assignment,
were established during the war and participated in the liquidation of
these nationalistic groups in the Ukraine and the deportation of mi-
norities from their homelands. I assume that these divisions are now
active in Hungary, along with Soviet Army units.

Mr. Morris. Do you know Ambassador Rodionov ?

Mr. Eastvorov. He is an admiral of the Soviet Navy. He was ap-
pointed as Ambassador to Sweden in 1948 or 1949.

Originally, he was one of the deputies of the chairman of the Com-
mittee for Information, and I worked under him at that particular
time.

He went to Sweden as the Ambassador of the Soviet Union, and
stayed there until recently, when he was forced to leave by the pressure
of Swedish public opinion, in connection with his espionage activity
in that country.

He started in this profession in the early 1940*s, as one of the lead-
ing figures of the Navy Intelligence Service of the Soviet Union

Mr. Morris. Was he head of the Navy Intelligence Service?

Mr. Rastvorov. Yes; at one time before the establishment of the
Committee of Infornuition.

In 1948, after the merger of all the military intelligence services of
the Soviet Union and the intelligence service of the MVD, he was
appointed a deputy of the chairman for the Committee on Informa-
tion. At that time, the chairman of the Committee of Information
was Molotov, who was succeeded by Vishinsky and then by Zorin, for-
mer ambassador to Bonn.

Mr. Morris. So Zorin, too, was an intelligence man acting under
diplomatic cover?

Mr. Rastvorov. Yes; he worked as an intelligence officer under
diplomatic cover in Germany.

Mr. Morris. xVnd I think that you told us previously that Ambassa-
dor Panyushkin was, to your knowledge, a high-i'anking official of
the Soviet intelligence service.

Mr. Rastsorov. Yes; I know liim personally as a high-ranking in-
telligence officer.

Mr. Morris. What was his military rank?

Mr. Rastvorov. He was a major general, and after he returned to
the Soviet I'nion he was appointed as a deputy of the chief of the
P'oreign Directorate of the Central Committee of the Communist
Party. We can say that this directorate is the same thing as the Com-
intern— in other words, it functions as a clandestine Comintern.

Senator Jenner. Was the Comintern dissolved during the war?

Mr. Rastvorov. Yes; it was.

Senator Jenxer. Well, was it actually dissolved?

Mr. Rastvorov. No; not actually. Only nominally.

Senator Jexxer. It went ahead functioning?

Mr. Rastvoron. Yes; just the same, basically.

Mr. Morris. In fact, is there any diU'erence whatever in their activi-
ties before the so-called dissolution, and after dissolution?

Mr. Rastvor(jv. No ; they continued to work the same way, using the
same methods.

SCOPE OF SOVIET ACTIVITY IX THE UNITED STATES 3173

Mr. Mourns. Mv. Tiustvorov, it l\:is l>eeii suirjiested that the pre.sent
policy of the Tnited States vis-a-vis the Soviet T^nion at this time
slioiild be one of assist ino- the Soviets in etiectinir a series of detach-
ments of the satellites from the Soviet I^nion. The Ignited States
Government is being nrged to lend its good offices to aiding the Soviet
Union in negotiating these detachments of the satellites from the
Soviet I'nion and that bv so doing we wonld be contributing to the
peace of the world. The reason for all of this being that the satellites
have become a liability to the Soviet Union,

Air. Rastvoro\. Well

Mr. M(»Ki!is. Ivet me linish.

Based on your long experience as a Uonnnunist and particularly as
an officer of political intelligence, can yon tell us what your analysis
is of events in the satellites and generally the meaning of Soviet
})olicies.

Mr. Ras']'voko\'. The Westein world has welcomed de-Stalinization
with a mixture of confusion and wishful thinking, the recent form of
which may be more aptly termed an indulgence in "gi-eat expecta-
tions." The belief that the present Kremlin leadership has inaugu-
rated a departure from Stalinist terror and brutality has been de-
stroyed by the recent events in Eastern Europe.

a" key to the present situation was Khrushchev's conditional con-
demnation of Stalin for such acts as the extermination of many lead-
ing old Bolsheviks, while conveniently ignoring the forced collectivi-
zation of the Russian peasantiy through mass annihilation. The
])ractical nature of the Communi'^t system was thereby shown. A
leader was condemned for certain errors alone, his general policy of
oppression was not rejected, in either internal or external matters. As
far as the latter is concerned, the expansionist policies of the Soviet
Union were entirely in keeping with Lenin's philosophy, and certainly
not attributable to Stalin alone. The present leaders of the Kremlin
will continue to advocate the basic principles of Marxism-Leninism,
without the limitations imposed on them by the reactionary brutality
of Stalin.

De-Stalinization can be considered as the basis of the policy bemg
applied at present by the Soviet regime in its efforts to seek new, flexi-
ble political forms in relationship to its own people, the satellite popu-
lations, and the inhabitants of the Western World. This has been
inade necessary by the realization that there is evolvhig a growing
opposition to connnunism and its leadership. The denunciation of
Stalin was forced by the realization that his methods, essentially rigid
and reactionary, were not consistently applicable in present circum-
stances. They have realized that a more elastic political form was
long overdue, in which they could appeal to the wishes of the populace
by the institution of temporary and artificial reforms. This must be
recognized as not l>eing a departure from the basic principle of control,
the very essence of the Soviet system.

The entire program of de-Stalinization has been projected on a
barrage of propaganda designed to create the illusion of the advent of
a new era devoted to the pure form of communism. However, so-
called de-Stalinization does not mean a departure from the central
theme of communism, the basic tenet of which is "the dictatorship of
the proletariat,'* or more correctly stated, "dictatorship of the party
henchmen over the working masses." This dictatorship is impossible

3174 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

without the application of the identical methods of Stalin— terror and
oppression. This same resort to violence will be foimd in the new,
flexible political policies of the collective leadership. A perfect exam-
ple of the application of this flexibility can be shown in the develop-
ments in Poland and Himgary. In the first case, control has been
maintained by the application of this rapid political maneuvering
called for in Leninism, the use of the principle of retreat m order to
regi'oup and reorganize preparatoiy to advancing. The political and
economic domination of Poland by the Soviet Union is unchallenged
to this moment, despite the liberal refonns attributed to the Gomulka
regime. Should the situation in Poland have presented an opportun-
ity for the emergence of an opposition party, the Soviets would not
have hesitated in the application of the violent elements of their new
policy of flexibility.

In the case of Hmigary, the world has witnessed a perfect example
of the more practical aspects of the new Soviet flexibility. Unen-
ciunbered by moral principles, the Soviet regime set about systemati-
cally to liquidate an entire nation. The Kremlin leadership quickly
recognized the appearance of new political forces, representing a
fatal threat to the strategic position of the Soviet Union in Hungary.
The end result was inevitable. Despite resolutions of condemnation,
protestations, and appeals to moral principles, I believe that the
Kremlin leadership under no circumstances will relent from its com-
plete domination of Hungary. In reference to the possibilities of
liberating Eastern Europe by peaceful means, may I quote Khrush-
chev, to the effect that the Soviet Union will depart from the princi-
ples of Marxism-Leninism when "the shrimp learns to whistle." The
Western World must recognize that de-Stalinization is nothing more
than a reaffirmation of the basic principles of Marxism-Leninism, and
is essentially a much more cynical and complete system, embodying
both the ruthless oppression of Stalinism and the more subtle means of

political manipulation.

Keeping this situation in mind, I believe that the Kremlin, in spite
of its saber rattling, is genuinely concerned with the preservation of
peace — for a limited time. It must be noted, however, that peace is
desired by the Soviets and the Western World for completely differ-
ent reasons. The high ideals of the West fit precisely with the prac-
tical considerations of the Kremlin. The biggest factor in the plan-
ning of the Soviet Union is time. They need time to build, time to
consolidate, and time to establish a state of preparedness, from which
they can enter the inevitable conflict with a reasonable hope of success.

Mr. Morris. I think that is all.

Senator Jenner. Off the record.

(Discussion off the record, following which, at 4 p. m., the subcom-
mittee recessed, subject to call of the Chair.)

(The following testimony by E. Andriyive, a Soviet defector, on
Mav 16, supplementing a previous excerpt which appears in part 21
of Scope of Soviet Activity in the United States, was ordered into'
the record by Senator Arthur V. Watkins, presiding, at a hearinu: on
February 20, 1957:)

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3175

CONTINUATION OF THE TESTIMONY OF E. ANDRIYVE ON MAY 16,

1956

Mr. Morris. How do you interpret recent events in the Soviet
Union based on your experiences as you liave set them forth?

Mr. Andriyve. You obviously refer to "de-Stalinization," sir, to
tlie famous Khrushchev's speech of February 24, 1956. It seems that
the meaning of the "new Soviet turn," as far as the West is con-
cerned, has been correctly understood liere. Khrushchev did not
change a bit the old Soviet ultimatum to the West: Capitulate or
perish. His "new" line is not to abandon the old Stalin policies but
to make them more efficient.

On the other hand, the reasons why the "de-Stalinization" cam-
paign has been launched are being explained here in various equally
unconvincing ways. Yet, to understand the functioning of the Soviet
system it is very important to know those reasons. I claim no patent
for knowledge of the Soviet system, but still have a sort of my own
theory.

Some experts say that the "de-Stalinization" is a consequence of
acute internal troubles and that Stalin was sacrificed as a scapegoat
in view of the prevailing well-known mass discontents in the Soviet
Union and in satellites.

It is easy to expose the inconsistency of such explanations. The
mass discontents have been deeply rooted in Russia and in the satel-
lite countries; they are an inalienable part of the Soviet system.
Unless the 300 million people were taken for morons, the Kremlin
gangsters could not even dream of alleviating those discontents
merely by using Stalin's corpse as a "scapegoat." Consumer's goods
and some human rights could have done the job, nothing else. And
precisely these things the Kremlin gangsters could not give the people
witliout midermining the very basis of the Soviet system. On the
other hand, unless they were suicides, the Kremlin clique could have
never tlirown their most valuable Stalin's icon overboard, and face
innumerable (and easily predictable) difficulties just for try.

I know some of the Kremlin gangsters personally and know their
modus operandi very well. There must have been some imperative
reasons for them to do such a disadvantageous thing.

Let's establish a few basic points that could easily be proved by
facts and on which most observers apparently agree :

1. The present Kremlin masters, as past accomplices in all Stalin
crimes, are just criminals themselves, with characteristic absence of
morals, honesty, conscience, or pity; they are guided by Communist
expediency only.

2. Under Stalin they lived in constant fear of physical extermina-
tion by him. They are prepared to go to any length to prevent a
reestablishment of that sort of personal terror.

3. There has been going an acute struggle for the supreme power
among them.

4. Being the disciples of the same Marxist-Communist school, they
fear each other and distrust each other.

5. Terror has been the only principle of Soviet succession to the
throne.

These features will help in discerning their motivations.

3176 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

Stalin used his secret-police machine for two distinct purposes:
(1) As a weapon of his government against the people; (2) as his
personal weapon against any of his henchmen. Historical facts as
well as the structure and organization of Soviet police amply prove
this assertion.

After Stalin's death, Beria, holding this dual weapon tried — quite
logically — to seize the throne. Unfortunately for him, his comrades
were alert enough to forestall the trouble by killing him off first. It
is interesting to note in this connection that there is not a slightest
proof to the official contention that Beria was tried in December 1953
and subsequently executed. On the contrary, many facts indicate
that he was killed off' on the spot in June 1953, and that the sham
trial (in absentia) was staged half a year later for propaganda
purposes.

Should Beria have grabbed the supreme poAver he would undoubt-
edly have liquidated some of his comrades as the latter would not
have left his position unchallenged. That's why murder of Beria
was an act of preventive self-defense on the part of his comrades.

The comrades jealously watching each other decided, for the sake
of their mutual security, to truncate the secret-police machine so that
it won't be able to perform its function No. 2. No. 1 fimction was
left intact. As outward manifestations we saw reshufflings and
shooting on the highest level of the police. Two chiefs of the Inves-
tigative Section of the Division for Protection of Leaders ( Ryumin,
Vlodzimirsky) were shot. Precisely this section was instrumental in
liquidation of the comrades in arms by Stalin. V. S. Abakumov, one
of the police chiefs, was shot for fabrication of cases against party
leaders. Many lesser figures in the police Avere shot.

The propaganda line at the time was: "Beria — the Fascist dog and
agent of imperialists,'' his police machine is being reorganized to
provide better "justice'' for citizens. Beria agents were extirpated
everywhere. A typical Stalin pattern of handling the two lines —
words and deeds — separately and independently.

Lacking legal successor and rivaling with each other, the comrades
agreed on the idea of committee rule — the famous collective leadership.
Reluctantly they agreed to recognize Malenkov as their No. 1 man.
The choice of Malenkov could not be accidental, however. It meant
that Malenkov was the most influential man at the moment ; he had
greater backing from the comrades themselves and from the Central
Committee than any other member of the clique. He had strong and
long-established connections with the party and its Central Commit-
tee, the fact dangerous in itself. So the comrades put the old blabber,
demagog, and alcoholic Khrushchev between Malenkov and the party.

But Malenkov clearly was not satisfied wnth his position : he maneu-
vered further. He was first to condemn Beria and his inadmissible
methods, and thus capitalized on the universal hatred against Beria
and his methods. Then Malenkov offered a program of boosting the
production of consumers' goods at the expense of heavy industry,
thus striking at the most sensitive point of the people and gaining
exce])tional popularity. That was a real danger to the comrades and
to the system. They began to realize that without the police Malenkov
could demote them one by one and subsequently do away Avith them.
By raising the real wages of Soviet workers from their normal below-

SCOFK OF SOVIKT ACTIVITY IN THE UNITED STATES 3177

subsistence level Maleukov eoiild shatter the very i'oumlations of the
Soviet s^^stem. He became too dangerous.

Now, l3_y all Stalin canons and by their own standards the comrades
had to shoot Malenkov with or without a frameup. Yet he was only
moderately disgraced and demoted. He publicly read his uniit-for-
leadership confession, and was appointed as a minister of electric
stations. Thus he disqualified himself for any future bid for the
supreme power. Wh}' the comrades spared Malenkov ?

Apparently because by that time (February 1955) all comrades
deeply realized that the committee rule in earnest was the only way out
for all of them. No more killings among the members of the gang;
there were enough enemies and capitalists aromid to be killed. They
were watching with schadenfreude us and discussing our "struggle for
power."

Each member of the Kremlin gang knew others as crooks and was
suspicious of them. Each was equally determined to prevent any
comrade from grabbing the throne. This was not a case of mutual
rivalry so common in the Western cabinets. It was a case of survival
for every member of the gang. This unusual situation has resulted in
an unusual decision. Two least capable and least influential members
of the gang were selected as outward representatives : Bulganin for
the "government," Khrushchev for the party.

With all important governmental matters discussed in the Presid-
ium and decided upon by majority vote, the rule of the two represent-
atives could seemingly be reduced to that of announcers of the will of
the Presidium, and the setup looked safe.

The two clow^ns we immediately recognized in the West as the
Premier and the party boss. Conditioned by long years under Stalin
the people at home have also recognized them as the head of the gov-
ernment and the head of the party. Perhaps unwittingly the clowns
from the very start got more recognition than their comrades had
planned. They began their extensive travels at home and abroad, for
the first time enjoying some of the freedoms they had been denied by
Stalin. Despite their butiooning, alcoholic blab, and tactless pranks,
their prestige steadily rose as they were the recognized representatives
of the all-powerful Communist empire. Such occasions as the Geneva
Conference only boosted their prestige.

We do not know how far their personal feelings about their impor-
tance had gone, nor what sort of designs for the throne they had made,
but we do know that their comrades in the Presidium got worried
again. Besides, the safeguards already taken were felt inadequate
anyway. A situation could easily develop when an influential member
of the Presidium (say Molotov, or Mikoyan, or Kaganovich) using his
personal prestige and comiections and intriguing within the Central
Committee could gain an exclusive support of that body. With no
police support, without palace revolt, he still would eventually be able
to climb the throne.

Additional safeguards were in order to repel early all such attempts.

The Central Committee had to be permanently attuned for rebuff.
Hence repeated denunciations of the cult of personality which the
comrades had practiced in general terms for some time. But tlie
comrades got themselves into an untenable situation. All right, the
cult of personality was wrong. Was it wrong under Stalin ? Presum-

3178 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES

ably, yes. Then, what Stalin had done was wrong? Apparently no ;
because the post-Stalin changes were insignificant. Or a part of Stalin
deeds was wrong? Which part? Or the cult was right under Stalin
and wrong ? Why ?

Combined with the profound genuine hatred toward Stalin in prac-
tically all strata of Soviet society, such questions prompted anti-Soviet
fermentation. Stalin's crimes against many party chieftains were
fresh in the memory of their pals in the CC. Some of his victims were
still alive in jails and camps. A number of slandered innocent victims
were released. Cases of others were reviewed. Some were not re-
leased, not exonorated. Why? Were they Stalin's enemies or also
the present gang's enemies? Unhealthy talks began at home and
abroad. And what was most important, how could the CC positively
react against a concrete carrier of the cult when the cult was so loosely
defined? Was one-half of the Stalin cult OK? Was three-fourths
of Khrushchev's cult and a little of Bulganin's OK ?

Something unequivocal and drastic had to be done. Not only the
departed leader had to be mentioned by name but a definite part of his
crimes had to be clearly exposed and condemned ; the exact degree of
allowed criticism (for party members so-and-so much, for the rest
so-and-so much) had to be clearly announced. That was a very difH-
cult decision to make. Between February 19.55 and February 1956,
the comrades apparently discussed the burning problem many times,
Pravda reflecting the situation by on-and-off references to the great
leader or total omissions of the controversial name. January 23, 1956,
Pravda used the term "party of Marx-Engels-Lenin-Stalin" for the
last time. Since then Stalin's name was dropped.

To be sure the adverse consequences of an anti-Stalin course loomed
clearly on all sides. The comrades were to sacrifice the icon of their
demigod which was most valuable for the central control of the
empire. They could safely go on using the icon for justification of
practically any policies; for, after all, what Stalinism was? Just
anything designed or used to help the Kremlin and to destroy the
West. Communist dialectics could explain away anything.

Yet in spite of the adverse forebodings the comrades decided to do
away with the Stalin icon. Many facts indicate that the decision was
not unanimous. Yet, the majority drive to enlist the full power of the
CC against any member of the gang who might attempt to grab the
power singlehandedly has finally prevailed. The cult of personality
had to be condemned in theory and in practice in the strongest terms
and at any price. Vital personal interests, bare instinct of self-
preservation, not the supreme Communist motivations, lay at the root
of the anti-Stalin campaign. Comrades, let's preserve our hides what-
ever losses to the cause. Should we lose our hides, the cause will be
lost completely.

But there were some brighter aspects, too. Deep hatred toward
Stalin could be conveniently exploited. Many little palliations (intro-
duced for improving the operational efficiency of the regime) could
be presented as a proof of benevolence of the new line. The approach
to the neutralists and liberals in every noncommunist country seemed
t/O become easier. As to the diehard imperialists, they won't bother
us. Not only would they miss the opportunity to rout us at this criti-
cal moment, they will fail to comprehend the nature of our difficulties.

SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3179

We need to recall only the words of our great leader and master Lenin :
"The bourgeoisie is organically incapable to combat communism";
which the bourgeoisie has been beautifully proving the last 39 years.

Such were the reasons — as we see them — for the famous Khrushchev
speech of February 24, 1956.

In the light of subsequent serious losses communism suffered
throughout the world, was the Khrushchev s])eech a mistake? We do
not think so. The partial exposure of Stalin had only one aim: To
stabilize the Kremlin gang. So far that aim has been fully achieved.
No external or internal vicissitudes have shaken the gang. And that
is the main thing. Western press predicted many times a fall of
Bulganin's cabinet, or a fall of Khrushchev, and so forth. Nothing of
the kind happened. The reason has been simple: The Bulganin
cabinet in the Western sense does not exist in nature. On the other
hand, many powerful means that the West really possesses have never
been used against the Kremlin gang.

COXCLUSIOXS

1. The present Soviet regime is of necessity a genuine committee
rule, the collective leadership. It has been successful, so far, and it
may be successful for many years to come.

2. Khrushchev and Bulgaiiin are not the bosses of the Kremlin gang,
but only its outward representatives. They can be substituted by
other members — the fundamental course of the regime will not change.
The Kremlin crooks can abandon their great final plan no more than
the Americans can abandon dollar.

3. Although there surely exist factions within the gang, they settle
their differences by frank discussions and majority vote. It would
be wrong to take reshufflings that sometimes occur in the Kremlin
for indication of a major irreparable split.

4. The Soviet Armed Forces are organized on an entirely different
basis from those in the West. The '"army*' (a favorite term of western
columnists) did not and could not have an}' significant influence in the
Kremlin changes.

INDEX

Note. — The Senate Internal Security Subcommittee attaches no significance
to the mere fact of the appearance of the names of an individual or an organiza-
tion in this index.

Page

Abakumov. V. S 3176

Aiidriyve, E. (testimony resumed) 3175-3179

Anti-Communist 3164, 3166

Anti-Soviet 3154

Anti-Stalin 3161,3178

Beria 3171,3176

Bialer, Seweryn (testimony of) 3151-3167

Statement of events in Poland 3161-3167

Bolsheviks 3173

Bonn, Germany 3172

Bordzilowski 3160

Bulganin 3163, 3178, 3179

Central Committee 3162, 3163, 3176-3178

Eighth Plenum of 3162

Seventh Plenum of 3166

Chichans 3171

Comintern 3172

Communists 3155-^158, 3164, 3106, 3169, 3173, 3175

Polish 3151,3153

Communist Party 3154

American 3151

Hungarian 3156

Polish 3152, 3153, 3156, 3157, 3160, 3164-3166

Russian 3158

Crimean Tartars 3171

Cyrankiewicz 3165

Daily Worker 3151

De-Stalinization 3161, 3173-3175

Europe, Eastern 3174

Geneva Conference 3177

Germanv 3171, 3172

Gomulka 3151, 3154. 3155, 3157, 3159, 3160, 3162-3167, 3174

And hLs strength in Polish Party 3165

Government :

Polish 3154

Soviet 3154

Hungarian Legation 3159

Hungary 3155, 8157, 3158, 3160, 3163. 3164, 3170-3172, 3174

n INDEX

Page

Ingushi 3171

Investigative Section of Division for Protection of Leaders 3176

Iron Curtain 3159

Japan 3169,3170

Japanese prisoners 3169, 3170

Jenner, William E 3151,3169

Kaganovich 3177

Kalmiks 3171

Karski, Jan, interpreter for Seweryn Bialer 3151

Katyn, Poland 3159

KGB (formerly called MVD) 3170

Khrushchev 3154, 3159, 3161, 3173, 3174, 3176-3178

Speech of February 24, 1956 3175, 3179

Kliszko 3165

Konoye, son of Prince 3169,3170

Kremlin 3173-3175, 3178, 3179

L
Lenin 3173, 3179

Leninism 3174

Leninist 3165

Loga-Sowinski 3165

Malenkov 3176

Mandel, Benjamin 3151, 3153

Marx-Engels-Lenin-Stalip 3178

Marxism-Leninism 3173, 3174

Mikoyan 3177

Minister of Defense (Polish) 3160

Molotov 3172,3177

Morris, Robert 3151, 3153, 3169

Moscow 3158, 3163-3166

Muscovite 31(>4

M\^D 3170-3172

Nagy, Imre 3155, 3157, 3158, 3164

Navy Intelligence Service of Soviet Union 3172

NKVD 3169. 3172

O
Ochab 3165

Panyushkin, Ambassador, Deputy Chief of Foreign Directorate of Cen-
tral (.'onimittee 3172

Party Activ 3161, 3165

Plenum 3165

Poland 3151, 3153-3155, 3157, 3159, 3160, 3162-3167, 3174

Polish Army 3159. 3160

Polish refugee 3159

Polish Socialist Party (an anti-Communist Party) 3164,3165

Polish United Workers Party (PZPR) 3161

Politburo 3153,3162-3166

Poznan 3162

Pravda 3178

Presidium 3177

INDEX III

Page

Rastvorov, Yuri (testimony of) 3169-3176

Officer of MVD 3170

Red Army 3157, 3172

Rodionov, Ambassador (to Sweden) 3172

Rokossovsky (in charge of Polish Army) 3159, 3160

Rusher, William A 3151

Russia 3161, 3164^3166, 3175

Ryumin 3176

Serov, Colonel General, ranking MVD officer 3170, 3171

Sourwine, J. G 3151, 3153

Soviet Ambassador to Japan 3169

Soviet armed forces 3179

Soviet bloc 3163

Soviet defector 3158

Soviet Embassy in Washington 3159

Soviet forces 3160

Soviet Intelligence Service 3169, 3170

Soviet Union 3151, 3153, 3155, 3157, 3158, 3160,

3161, 3163, 3166, 3169-3175

Spychalski 3160, 3165

Stalin 3162, 3165, 3166, 3173-3176, 3178, 3179

Stalinism 3166

Sweden 3172

Tikhvinsky, Sergei 3169, 3170

Tito 3157, 3158

Statement in New York Times October 30, 1956 3157

Tokyo 3170

Ukraine 3172

United Nations 3159

Vashkin, Colonel, chief of MVD group in Tokyo (Volgin, cover name) 3170

Vishinsky 3172

Vlodzimirsky 3176

Volgin (cover name of Colonel Vashkin) 3170

Watkins, Senator Arthur V 3174

Western World 3173, 3174

Zorin 3172

BOSTON PUBLIC LIBRARY

llllllllillilll ,
3 9999 05442 1811

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