S. 3336. An act to promote the apportionment of the waters of the Columbia River and tributaries for irrigation and other purposes by including the States of Nevada and Utah among the States authorized to negotiate a compact providing for such apportionment; and

S. J. Res. 165. Joint resolution to provide for construction by the Secretary of the Interior of the Glendo unit, Wyoming, Missouri River Basin project.

ENROLLED BILLS AND JOINT
RESOLUTION PRESENTED

The Secretary of the Senate reported that on today, July 8, 1954, he presented to the President of the United States the following enrolled bills and joint resolution:

S. 268. An act for the relief of Harold Trevor Colbourn;

S. 381. An act for the relief of Donald Grant;

S. 455. An act for the relief of Johan Gerhard Faber, Dagmar Anna Faber, Hilke Faber, and Frauke Faber;

S. 490. An act for the relief of Josephine Reigl;

S. 520. An act for the relief of Mr. and Mrs. Ivan S. Aylesworth;

S. 579. An act for the relief of Wong You Henn;

S. 3336. An act to promote the apportionment of the waters of the Columbia River and tributaries for irrigation and other purposes by including the States of Nevada and Utah among the States authorized to negotiate a compact providing for such apportionment; and

S. J. Res. 165. Joint resolution to provide for construction by the Secretary of the Interior of the Glendo unit, Wyoming, Missouri River Basin project.

MANAGEMENT OF THE EXPORTIMPORT BANK OF WASHINGTON, ETC.

The Senate resumed the consideration of the bill (S. 3589) to provide for the independent management of the Export-Import Bank of Washington, under a Board of Directors and for other pur

poses.

Mr. CAPEHART. Mr. President, when the bill was introduced, much discussion and colloquy in great detail was had on the subject. Again on Tuesday

of this week it was discussed in the Senate. The bill was reported unanimously from the Senate Committee on Banking and Currency. It proposes to expand the activities of the Export-Im

S. 747. An act for the relief of Jacek Von Henneberg;

S. 1050. An act for the relief of Josephine Maria Riss Fang;

S. 1382. An act for the relief of Elie Joseph Hakim and family;

S. 1508. An act for the relief of Borivoje Vulich;

S. 1517. An act for the relief of Helen Knight Waters and Arnold Elzey Waters, Jr.; S. 1689. An act for the relief of Mrs. Cacila Gotthardt Gange;

S. 1796. An act to incorporate the Board of Fundamental Education;

S. 1991. An act for the relief of Esperanza Jimenez Trejo;

S. 1999. An act to provide for the recovery, care, and disposition of the remains of members of the uniformed services and certain other personnel, and for other purposes;

S. 2198. An act for the relief of (Sister) Jane Stanislaus Riederer;

S. 2369. An act for the relief of Karl Ullstein;

S. 2370. An act to authorize the sale of certain vessels to Brazil for use in the coastwise trade of Brazil;

S. 2465. An act for the relief of Lydia Wickenfeld Butz;

S. 2468. An act to authorize the President to appoint to the grade of general in the Army of the United States those officers who, in grade of lieutenant general, during World War II commanded the Army ground forces, commanded an army, commanded Army forces which included a field army and supporting units, or commanded United States forces in China and served as chief of staff to Generalissimo Chiang Kai-shek in the China theater of operations, and for other purposes;

S. 2488. An act to provide that each grant of exchange assignment on tribal lands on the Cheyenne River Sioux Reservation and the Standing Rock Sioux Reservation shall have the same force and effect as a trust patent, and for other purposes;

S. 2728. An act to authorize the collection of indebtedness of military and civilian personnel resulting from erroneous payments, and for other purposes;

S. 3196. An act for the relief of Dr. Helen Maria Roberts (Helen Maria Rebalska);

S. 3291. An act authorizing the President to present a gold medal to Irving Berlin;

it. The President of the United States

is enthusiastically in favor of the bill and

what it will do for the country.

Mr. President, I shall not speak further on the bill, except to answer questions which my colleagues may have to propound.

Mr. SMATHERS. Mr. President, I wonder if the Senator from Indiana will yield to me so that I may ask a few questions.

Mr. CAPEHART. I am very happy to yield to the Senator from Florida.

Mr. SMATHERS. First, I wish to congratulate the Senator from Indiana, the chairman of the Committee on Banking and Currency, as well as the minority ranking member, the able Senator from South Carolina [Mr. MAYBANK], for bringing this most necessary bill to the floor of the Senate. As I understand, one of the purposes of the bill is to launch the United States into a more active and aggressive foreign trade policy. Is that correct?

Mr. CAPEHART. Yes. The purpose of the bill is to expand the activities of the Export-Import Bank in order to help our small exporters, to lend money on longer terms to our friends in foreign countries, and to encourage trade and a greater flow of trade in both directions, sales by our people to other countries, and sales from other countries to our people.

Mr. SMATHERS. Is it not the opinion of the chairman of the committee that if the bill is passed, it will make it possible for more loans to be made and more business to be entered into between this nation and other nations, and on more favorable terms?

Mr. CAPEHART. Yes; because the bill increases the authority of the bank to lend money up to $5 billion, which is a $500 million increase over the provisions of the present law. It is the intention of the Senate Banking and Currency Committee, and it will be the intention of the Senate and the Con

gress when the bill passes that the Bank increase its lending activities.

Mr. SMATHERS. Is it not a fact that the bill provides for an expanded amount of credit?

Mr. CAPEHART. Yes, to the extent of $500 million.

Mr. SMATHERS. I should like to read to the chairman of the committee a paragraph appearing on page 3 of the report:

When enacted into law and after the effective date, the provisions of the bill supersede Reorganization Plan No. 5 of 1953. This will leave the National Advisory Council on International Monetary and Financial Problems with the power to coordinate the foreign lending activities of the Export-Import Bank with those of other Government agencies. The present power of the National Advisory Council to "establish the general lending and other financial policies" of the bank will be abolished.

My question is, does the paragraph which I have read in anyway indicate that the passage of the bill will endanger

the independence or freedom of the Export-Import Bank to make its own loans?

Mr. CAPEHART. It does not. The bill proposes to increase the independence of the bank. When the National Advisory Council on International Moneized, which came into existence as a retary and Financial Problems was organ

sult of the so-called Bretton Woods agreement, the President of the ExportImport Bank was a member of the Council. Therefore he sat and participated in the deliberations of the Council. However, under Reorganization Plan No. 5, which was adopted last year, the President of the Export-Import Bank was relieved of membership on the Council, and the Export-Import Bank has had no representation on the Council. What is being proposed in this instance is to reinstate the representation of the ExportImport Bank on the Council. It will give the bank more independence and be more helpful to it.

Mr. SMATHERS. Under this measure is it correct to assume that the chairman of the committee feels that there will be more freedom for the Export-Import Bank, and that no longer will it be dominated by the World Bank?

Mr. CAPEHART. That is exactly the intention of the committee in connection with this measure. Certainly that is the intention of the two authors of the bill

myself and the able senior Senator from South Carolina [Mr. MAYBANK]—namely, that the Export-Import Bank shall become an independent agency, subject only to the supervision of the coordinating council, which, by the way, was established by law by the Congress. Otherwise, the Export-Import Bank is to be an independent agency. It is to make its own loans. Of course, it is to cooperate with all other governmental agencies, as should be the case; but certainly the Export-Import Bank is not to take a second or subordinate position to the World Bank, insofar as loans to United States exporters are concerned.

Mr. SMATHERS. It would be helpful, for the RECORD, if the chairman of the committee would state the reasoning of the committee in not providing a definite length of term for the officers of the Export-Import Bank.

Mr. CAPEHART. I assume that the Senator from Florida refers to the terms of service of the directors of the Export-Import Bank.

Mr. SMATHERS. Yes.

Mr. CAPEHART. The bill does not contain any limitation on the terms of service of the members of the Board of Directors of the Export-Import Bank. They are to serve at the will of the President. The committee discussed the possibility of providing for a definite term of 5 years or 7 years. The committee reached the conclusion that, inasmuch as the directors are to spend all their time in the work of the Export-Import Bank, and inasmuch as they will be charged with a certain amount of executive responsibility, it might be just as well to have them serve at the will of the President of the United States, since the President would name them. We discussed the matter, and reached the conclusion that we should at least try the plan outlined in the bill.

After frank discussion, I think each of the 15 members was satisfied that perhaps that was the better plan at this time.

Mr. SMATHERS. I thank the Senator from Indiana for the explanation he has given.

Mr. President, will the Senator from Indiana yield approximately 4 minutes to me, so that I may make a brief statement about the bill, in relation to its effect on Latin America?

Mr. CAPEHART. Mr. President, I am very happy to yield the floor, Mr. President.

Mr. SMATHERS. Mr. President, I should like to comment upon the timeliness of this measure, and to commend the chairman of the committee, the ranking minority member of the committee, and the other members of the committee for the forthright manner in which they have directed this attack upon the problem of increasing American trade and strengthening American friendship in our hemisphere and all around the world. This measure is most timely and can be most helpful, particularly with respect to our neighbors to the south.

Mr. President, we have just witnessed the repulse of world communism at its first beachhead in the Western Hemisphere. Let me state that in using that phrase I give due recognition to the distinguished minority leader, the senior Senator from Texas [Mr. JOHNSON]), who was the first to talk about the Communist beachhead in South America.

However, the military defeat of the Communists is not sufficient, as all of us recognize. In addition, we must move toward the development of the underdeveloped areas of the Western Hemisphere, to the end that the standards of living may be raised throughout the New World. Illiteracy and poverty provide the breeding places for communism; and our most effective weapons against communism are economic advancement and enlightenment.

Mr. President, the purpose of this measure, as I understand it, is to make the Export-Import Bank stronger, more independent, and more capable of carrying out a more comprehensive and re

alistic program throughout the world. The enactment of this measure will not only advance foreign trade, which is most important to the stabilization of the economy of the United States and also to the economy of the rest of the world, but it will also be of substantial benefit in the conduct of our foreign relations. This is particularly true with regard to Latin America. In fact, it is our concern for the nations of the Americas to the south of us which is partially responsible for the development of this meas

ure.

The Chairman of the Banking and Currency Committee toured a great portion of Latin America last fall, and brought back a report of need which has been most valuable and helpful in connection with the deliberations of the committee in its formulation of this proposed legislation. It is to be hoped that this measure will be passed promptly, as I believe it will be, and that it will lead to broader recognition of the importance to the United States of Latin America. But, more important, it is to be hoped that this measure, when enacted, not only will result in a more realistic program of assistance throughout Latin America, but also that it will be reflected in closer trade, and friendly relationships throughout this hemisphere.

The

Mr. President, Latin America is the fastest growing area in the world. Its present population of approximately 173 million is about equal to that of the United States and Canada combined. There are 62 Latin American cities with There are 62 Latin American cities with populations of 100,000 or more. The 3d, 4th, 5th, and 6th largest cities in the Western Hemisphere are in Latin America: Buenos Aires, which has a population of 3 million; Rio de Janeiro, with a population of 2,400,000; São Paulo, Brazil, with a population of 2,200,000; and Mexico City, also with a population of 2,200,000.

What is most significant, populationwise, is that while the world population is growing at the rate of approximately 1 percent a year, and the population of the United States is growing at the annual rate of 1.7 percent, the population of Latin America is growing at the rate of 2.5 percent. If the present rate of growth of Latin America continues, continues, within 50 years the population of the countries of Latin America will outnumber the population of the countries of North America by more than 2 to 1-with North America by more than 2 to 1-with 550 million people then residing in Latin America and about 250 million people residing in North America.

Mr. President, another factor of still greater importance is that much of the area of Latin America is now beginning to move from an underdeveloped status to a higher producing and consuming level.

If the United States and the other nations of the Western Hemisphere nations of the Western Hemisphere adopt and carry forward a program of mutual development of hemispheric natural resources, the hope for peace, prosperity, and happiness in the world will be immeasurably strengthened.

So, Mr. President, I believe this measure is most important and timely.

Again, I wish to congratulate the Senator from Indiana [Mr. CAPEHART],

the Senator from South Carolina [Mr. MAYBANK], and all the other Members of the Banking and Currency Committee for bringing before the Senate this most necessitous piece of legislation when enacted it will put into effect and give meaning to the slogan of "trade, not aid." This measure is the first realistic, practical measure we have had at this session designed to strengthen the economic relationships of the United States with the other nations of the Western Hemisphere.

Mr. President, I hope the bill will be passed promptly and without difficulty.

Mr. MAYBANK. Mr. President, I most heartily concur in the remarks made by the distinguished chairman of the committee, the senior Senator from Indiana [Mr. CAPEHART], and also in the remarks made by the distinguished junior Senator from Florida [Mr. SMATHERS].

Since I have been a Member of the Senate, I have always been interested in the Export-Import Bank. I was somewhat disappointed in the reorganization plan of a little more than a year ago, which in my judgment did not do the Export-Import Bank any good, but at the time there were not sufficient votes in the Senate to defeat the plan.

The Senator from Indiana has now moved to correct that situation by bringing forward this bill which will provide a Board of Directors for the ExportImport Bank. The bill not only calls for an increase of $500 million in the authority of the Export-Import Bank to make loans, but also provides for insurance features. Moreover, it gives certain rights to the Board of Directors of the Export-Import Bank, who in the future will not be hampered by other Government agencies in the way that has occurred in the past. The bank will be free to make loans, perhaps on the basis of longer terms, in order to meet the competition confronted by American businessmen and manufacturers and to enable them to operate on a more favorable basis.

So, Mr. President, I wish to concur in what the Senator from Florida has said and, in fact, in what the President, himself, has said. I refer to the statement that this is a bill for "trade, not aid."

In this connection, let me remind the Senate of the requests which have been made of us by the foreign aid bill, which proposes to give away approximately $3,400,000,000. As a member of the Appropriations Committee, I realize that more than $9,760,000,000 of the funds previously made available have not yet been spent, including $2,500,000,000 of the foreign-aid appropriations which have been made in the last few years; and let me say that I am glad I did not vote for those appropriations. In fact, Mr. President, the spending of much of that money has not yet even been planned. Those of us who serve on the Appropriations Committee have been told that plans are now being made regarding how to spend the $2,500,000,000 of foreign-aid appropriations which are still unspent and unobligated. In addition, we are faced with the fact that the pending foreign-aid bill calls for appropriations of $3,400,000,000. Of

course, we have $1 billion in a giveaway bill for Indochina, which has already collapsed.

I mentioned these things in order to emphasize the fact that this proposal is something tangible, something practical. This is what the President said he wanted-trade, not aid. I hope the I hope the business interests of the country and the governments of other countries will use the facilities of the bank for their benefit, for the benefit of humanity, and for the upbuilding of various countries throughout the world.

Mr. CAPEHART. Mr. President, before a vote is taken, let me say that the pending measure will promote the program of the President and of the Congress-a program of more trade and less aid. It is one of the most constructive pieces of legislation directed to that end. I am hopeful that there will be more constructive measures of this sort, whereby we can help through loans, and not aid.

My observation, after talking with representatives of many foreign countries, is that they are not interested in anything except loans. They are interested in trade. That is what we endeavor to promote by this bill.

We have before us at the moment a foreign mutual military-aid bill. I am hopeful that before we are through with that bill we can convert a few hundred million dollars of the requested funds into loans. For example, if we could loan the states of Indochina and the Middle East some money to put into factories and processing plants to provide jobs for their people to enable them to increase their own standard of living

cur in the remarks which have been made today by the distinguished Senator from Florida [Mr. SMATHERS] and other Senators in appreciation of the work which has been done by the chairman and by the ranking minority member of the Committee on Banking and Currency.

I believe this bill is sound. I believe it will inevitably lead to greater trade between this country and other countries of the world, notably those in Latin America which should be our greatest friends. They depend upon us. In association with us, I am convinced that they will become a great factor in maintaining the peace and security of the world.

I congratulate the distinguished chair

man.

Mr. CAPEHART. I thank the Senator.

Mr. FREAR. Mr. President, as has already been stated on the floor of the Senate, last fall certain members of the Senate Banking and Currency Committee, accompanied by a member of the House Banking and Currency Committee, made a trip to South America, in accordance with Senate Resolution 25, I believe. The able and lovable chairman of the Senate committee [Mr. CAPEHART] took advantage of every possible opportunity during that trip to obtain information from our Latin American neighbors. He studied the pros and cons of every question which arose. He talked with businessmen, laborers, and employers. He listened to almost anyone who sought his ear.

The able chairman of the committee returned and made his report. Today,

Mr. CAPEHART. Mr. President, the able Senator from Delaware [Mr. FREAR] was a member of our group which went to Latin America and visited 15 countries. He was with us every day, and was just as much responsible as was the chairman for all the meetings which were held, and for the hard work which was done in trying to bring out the facts. Mr. FREAR. I appreciate the very kind remarks of the Senator from Indiana.

The PRESIDING OFFICER. The bill is open to amendment. If there be no amendment to be proposed, the question is on the engrossment and third reading of the bill.

The bill (S. 3589) was ordered to be engrossed for a third reading, read the third time, and passed, as follows:

Be it enacted, etc., That section 3 of the Export-Import Bank Act of 1945, as amended, is hereby further amended to read as follows:

"SEC. 3. (a) The Export-Import Bank of Washington shall constitute an independent agency of the United States and neither the bank nor any of its functions, powers, or duties shall be transferred to or consolidated with any other department, agency, or corporation of the Government unless the Congress shall otherwise by law provide.

"(b) There shall be a President of the Export-Import Bank of Washington, who shall be appointed by the President of the United States by and with the advice and consent of the Senate, who shall receive a salary at the rate of $17,500 per annum, and who shall serve as chief executive officer of the bank. There shall be a first vice president of the bank, who shall be appointed by the President of the United States by and with the advice and consent of the Senate, who shall receive a salary at the rate of $16,000 per annum, who shall serve as president of the

we could go a long way toward curing many of the problems of the world. If

we are to cure the problems of the world,

we shall have to do it through trade, through jobs. We cannot do it with guns. We cannot do it with the military.

I do not mean by that statement to intimate that we ought not to have a strong Military Establishment. We ought to remain strong, but in the final analysis, trade makes jobs; and jobs make trade. In the final analysis people will be happy or unhappy in direct proportion to their ability to obtain jobs and earn wages, or own businesses. I believe that we ought to spend more of our time in doing things which would promote trade, rather than to give away so much money.

Mr. FREAR rose.

Mr. CAPEHART. Does the Senator wish me to yield to him?

Mr. FREAR. I wish to make a very brief statement when the Senator has concluded.

Mr. CAPEHART. I am through. Mr. President, I appreciate the kind remarks of the able Senator from Florida [Mr. SMATHERS] and the able Senator from South Carolina [Mr. MAYBANK].

Also I wish to take this opportunity to thank every member of the Senate Committee on Banking and Currency for the fine support which has been given me.

Mr. LEHMAN. Mr. President, as a member of the committee I heartily con

in the event of a vacancy in the office of president of the bank, and who shall at other times perform such functions as the

of the committee [Mr. MAYBANK] are It is a bill well worth the favorable con- president of the bank may from time to sponsoring this bill before the Senate.

sideration of this body.

Every cent of money expended by the Export-Import Bank goes into American channels. It is used for the purchase of American goods and services. The Export-Import Bank is not like the International Bank for Reconstruction and

Development, which can use its money in any place in the world. As a result of the dollars which the bank loans the pocketbooks

and bank accounts of

time prescribe.

"(c) There shall be a board of directors of the bank consisting of the president of the Export-Import Bank of Washington who shall serve as chairman, the first vice president who shall serve as vice chairman, and three additional persons appointed by the President of the United States by and with the advice and consent of the Senate. Of the 5 members of the board, not more than 3 shall be members of any one political party. Each director, other than the president of the Export-Import Bank and the vice

American corporations and individuals president of the Export-Import Bank, shall will be benefited, and at the same time the economic level of our Latin American neighbors will be raised. When their standard of living is raised-and, as I have indicated, this measure will prove of great assistance in that direction-they will be stronger allies of ours. The security of the Western Hemisphere will be increased. Although this is not a direct appropriation for the Defense Department, certainly indirectly it will play a great part in maintaining the security of our country.

I congratulate the able chairman of the committee, and also the ranking minority member, for all they have done in bringing this bill to the floor of the Senate. It is concise, and is drafted in language which can be understood by everyone. I know that it will be passed by the Senate.

receive a salary at the rate of $15,000 per annum. Before entering upon his duties, each of the directors shall take an oath faithfully to discharge the duties of his office. Terms of the directors shall be at the pleasure of the President of the United States, and the directors, in addition to their duties as members of the board, shall perform such additional duties and may hold such other offices in the administration of the bank as the president of the bank may from time to time prescribe. A majority of the board of directors shall constitute a quorum. The board of directors shall adopt, and may from time to time amend, such bylaws as are necessary for the proper management and functioning of the bank, and shall, in such bylaws, designate the vice presidents and other officers of the bank and prescribe their duties.

"(d) There shall be an Advisory Committee of nine members, appointed by the board of directors on the recommendation of the president of the bank, who shall be broadly

representative of production, commerce, finance, agriculture, and labor. The Advisory Committee shall meet one or more times per year, on the call of the president of the bank to advise with the bank on its program. Members of the advisory committee shall be paid a per diem allowance of $50 for each day spent away from their homes or regular places of business, for the purpose of attendance at meetings of the committee, and in necessary travel, and while so engaged they may be paid actual travel expenses and not to exceed $10 per diem in lieu of subsistence and other expenses.

"(e) No director, officer, attorney, agent, or employee of the bank shall in any manner, directly or indirectly, participate in the deliberation upon or the determination of any question affecting his personal interests, or

Mr. KNOWLAND. Mr. President, I move that the Senate proceed to the consideration of the report of the committee of conference on the disagreeing votes of the two Houses on the amendments of the Senate to the bill (H. R. 6342) to amend the Public Buildings Act of 1949 to authorize the Administrator of General Services to acquire title to real property and to provide for the construction of certain public buildings thereon by executing purchase contracts,

and figures of that kind. Then the proposals are referred to the Public Works Committees of the House and the Senate. It seems to me that the bill has been very carefully safeguarded. It will provide an opportunity to construct post office buildings and other buildings which the Federal Government needs at this time. We have not built any post offices in the United States for a period of 15 years.

The Senator from South Dakota [Mr.

CASE], the Senator from California [Mr.

KUCHEL], and the Senator from Florida [Mr. HOLLAND], who have done so much work not only in the hearings on the bill before the Committee on Public

or association in which he is directly or indirectly personally interested."

SEC. 2. Section 4 (a) of the Bretton Woods Agreements Act, as amended, is hereby further amended by striking out all following "Federal Reserve System," and inserting in lieu thereof "the president of the ExportImport Bank of Washington, and during such period as the Foreign Operations Administration shall continue to exist, the Director of the Foreign Operations Administration." SEC. 3. The Export-Import Bank Act of 1945, as amended, is hereby further amended

(b) Section 7 is amended by striking out the words "four and one-half times the authorized capital stock of the bank” and substituting therefor the figure "$5,000,000,000."

SEC. 4. The provisions of this act for the appointment of a president and a first vice president of the bank and the members of the board of directors shall be effective upon its enactment. The remaining provisions of this act shall become effective when the president and first vice president of the bank and one other member of the board of directors initially appointed hereunder enter upon office, and shall thereupon supersede Reorganization Plan No. 5 of 1953.

master General to lease quarters for post-office purposes, and for other purposes.

The PRESIDING OFFICER. The question is on agreeing to the motion of the Senator from California.

The motion was agreed to, and the Senate proceeded to consider the report.

Mr. MARTIN. Mr. President, the purpose of this bill (H. R. 6342) is to provide for the acquisition of title to real property and construction of public buildings by the Administrator of General Services and the Postmaster General through purchase-contract agreements, and for term-lease agreements for the accommodation of activities of the Federal Government. It provides a supplemental method of securing building space which would be used only in accordance with specified conditions and criteria.

When this bill was passed by the House of Representtaives it contained provisions which constituted a broad delegation of legislative authority to the executive department with respect to obtaining buildings for activities of the Federal ing buildings for activities of the Federal Government.

After considering those provisions, the Committee on Public Works recommended certain restraints upon this broad delegation of authority. The Senate accepted these restraints and added further amendments of a restrictive nature. As passed by the Senate, the bill fulfilled its original objective of providing a supplemental method of obtaining Federal building space but only under certain specified criteria and with adequate safeguards to preserve the legislative responsibilities with respect to authorizations for Federal buildings.

Under the agreement recommended by the conferees, the substance of all of the Senate amendments is retained in the act. Many of the Senate amendments are agreed to in their entirety. Other Senate amendments are modified for purposes of clarification.

Mr. President, the report was printed in the RECORD on pages 8877-79, of June 24, and I presume that Senators have read it. Therefore I shall not read the whole report. However, it provides a limitation of 3 years, and during the first year provides a limitation on expenditures by the Post Office Department of $3 million, and by the General Services Administration of $5 million. First, the proposals must be approved by the Bureau of the Budget, setting forth the cost, the amount, the length of the lease,

be very glad to answer any questions that any Senator may wish to propound. I believe it would be better to proceed in that way than for me to read the complete report, which is already printed in the RECORD.

Mr. BYRD. Mr. President, will the Senator yield?

Mr. MARTIN. I yield.

Mr. BYRD. Unfortunately, I have

just come into the Chamber, and I did not hear everything the Senator has said. As I understand, the conferees all the Senate accepted practically all amendments. amendments. Is that correct?

Mr. MARTIN. They accepted practically all the Senate amendments. There was some clarifying language added, but it does not disturb the meaning of the amendments added by the Senate.

Mr. BYRD. The provision requiring approval by the Bureau of the Budget was rewritten, but it is practically in the same language as before. Is that correct?

Mr. MARTIN. It is in the same language, approximately. Certain constitutional questions were brought up,

which we did not feel had much merit.

Mr. BYRD. Every agreement must have the approval of the Bureau of the Budget, as I understand.

Mr. MARTIN. It must have the approval of the Bureau of the Budget. In fact, the Director of the Budget must make a recommendation that the building is needed and furnish information concerning the length of the lease, and so forth. Then the recommendation is passed on by the Public Works Committees of both the House and the Senate. There is a limitation of 3 years on the amount of money, namely, the first year, $3 million for the Post Office Department, and $5 million for the General Services Administration.

Mr. BYRD. I thank the Senator from Pennsylvania.

Mr. CASE. Mr. President, will the Senator from Pennsylvania yield? Mr. MARTIN. I yield.

Mr. CASE. Mr. President, for purposes of the RECORD and in elaboration of the answer which has already been given by the distinguished chairman of the committee to the Senator from Virginia [Mr. BYRD], I should like to point out the process provided by the conference agreement in relation to getting the approval of the Senate and House Committees on Public Works.

In the bill as it passed the Senate, following a prolonged debate, as Senators

will remember, the big issue was the question of an administrative agency coming into agreement with the Committees on Public Works regarding lease-purchase contracts. The conference report eliminates reference to the contracts as such. The action of the committees will be as to projects rather than contracts of agreement. It may amount to the same thing, but there is some difference, because the committees are not required to pass upon particular contracts. It was on that point that the strongest arguments were made by those who feared that some constitutional questions might be involved. The procedure is that the proposed project will be submitted to the Committees on Public Works, and those committees, and through them, the Congress, will retain the right to authorize or not to authorize projects.

At the present time, in the absence of any legislation on the subject, no project can be entered upon by an administrative agency of the Government for the purchase of real estate or the construction of buildings involving the purchase of real estate, except by an authorizing act of the Congress.

This bill retains the authorization power in the hands of the Congress by providing that funds shall not be appropriated by the Congress unless they are based upon a list of eligible projects which has been reviewed by the appropriate committees. It is the belief of the conferees that an appropriation to make rents or rental moneys available for the payment of lease-purchase agreements would not be in order on an appropriation bill if they related to projects which had not been previously established on an eligible list. The conference bill avoids the constitutional question which was raised during the time the measure was under consideration by the Senate, for it does not require the agencies of the Government to submit agreements to the Congress, but they will submit their proposals for authorization, so to speak, by the inclusion on an eligible list, if the appropriate committees of the House and Senate agree.

There is retained in the conference agreement the several provisions which were hammered out in the Senate during the extended debate on the bill, namely, the provisions for detailed information on proposed projects. The approval of the Bureau of the Budget must be included in the data submitted by the General Services Administration or the Postmaster General. The approval of the Bureau of the Budget must be one of the certificates submitted to the Congress. Then there follows a long list of detailed information about the projects provided for in an amendment submitted on the floor of the Senate. So that when the record is complete, we shall not have given any blank checks to any agency of the Government to engage in an unlimited commitment of the Government for monthly payments for rentals or for retiring the principal cost of the buildings.

So, Mr. President, we think we have presented to the Congress a sound piece of legislation. There is a limitation on the time in which eligible lists may be

established that will insure review of the Congress.

Mr. President, I wish to commend the diligent work of the junior Senator from California [Mr. KUCHEL] and of the Senator from Florida [Mr. HOLLAND] because of their very careful work during the time the bill was under review by the Senate Committee on Public Works. During the debate the Senator from Virginia [Mr. BYRD] and the Senator from Delaware [Mr. WILLIAMS] raised questions which received serious consideration by the members of the committee at the time the bill was before us.

The bill represents a major piece of legislation. When the record of this Congress is written, I am confident that the authorization here created to provide a public-buildings program, both for general office buildings and for post offices, will be listed among the notable achievements of this Congress. We present the conference report today with full confidence that it embodies a measure which will be useful in the 3 years immediately ahead and which will lay the foundation for constructive, forwardlooking, long-range legislation for handling the office problems of the United States Government.

Mr. HOLLAND. Mr. President, will the Senator from Pennsylvania yield? Mr. MARTIN. I yield.

Mr. HOLLAND. Mr. President, I am sure every Senator realizes that this act is a distinct departure. Certainly the committee members who handled it in the beginning made no pretense that it was not and the conferees now state that the act will be a real departure from earlier practices. The fact of the matter is that the Congress finds itself so overwhelmed with details that it has become increasingly impossible to handle, in the antiquated fashion, special authorizations of the many, many building projects which are now required because of the present size of this Nation.

So, Mr. President, the legislation is experimental. The conference report contains one feature which has already been mentioned, and which was not contained in either the House bill or the Senate bill, which holds the measure to an experimental period of 3 years and points up the fact that the Congress in passing this legislation knows it is truly an experiment which it hopes will succeed, and which it retains the right to review and either continue or completely review and either continue or completely discontinue after 3 years of trial. Unless Congress acts affirmatively at the end of 3 years, in accordance with this provision in the report, the experiment will come to an end.

Mr. President, the distinguished chairman of the Public Works Committee and the Senator from South Dakota have both stated what is a fact-that nearly all the Senate amendments were preall the Senate amendments were preserved intact. The conference report filed by the conferees of the House and appearing in the RECORD shows that to be true, and shows clearly the few changes which were made in the Senate bill, one of which I have already mentioned, namely, the 3-year limitation. That is something new, which appeared for the first time in the conference.

The other two principal changes made in the Senate bill are, first, the one which seeks to substitute a new method of authorization for that which has heretofore prevailed as a part of the legislative process. Senators will recall that when the bill was passed by the Senate it contained a provision which would have granted to the committees of the two Houses the power to have submitted to them the plans and projects of executive agencies for their approval. Their agreement to any proposed project was a condition precedent to any further action taken thereon.

By whatever name it may be called, that procedure was a kind of veto upon the executive in its activities in carrying out the provisions of the act. Lawyers objected to that provision as being unconstitutional. As to the soundness of their objection, the courts alone could say. But certainly there is some substance to the objection.

So the conference report carries out the same intent as effectively as did the Senate bill, by requiring that, as a legislative procedure, any plan or any project, to become a part of the whole operation under this act, before any appropriations for use in the project are ever made, must have been submitted to and approved by the appropriate committees of the two Houses. For the first time, at least, so far as I know, authorization by the two committees will become a condition precedent to the inclusion of that item as such, or of a general item including that and other items, in an appropriation bill. Any efforts to bypass this requirement can be made the subject of a point of order. I shall read into the RECORD three sentences from the statement of the Managers on the part of the House, because they so clearly state the situation:

Under the new conference language, committee approval must be obtained before the necessary funds can be appropriated. If an appropriation should be proposed without committee approval, such appropriation would be subject to a point of order. Although the conferees feel that such a proposal would not be made, it is their intent and understanding that a point of order can be made and sustained against appropriations for projects lacking committee approval.

I may say that the Parliamentarians of the two Houses have been checked on the matter, and the conferees were advised that this was correct procedure, and that a point of order could properly be made and sustained under the procedure which is established by the bill.

The other real departure in the conference report from the Senate billand the only other substantial departure is one which raises the size of the program for the first year. In the case of the General Services Administration part of the program, the amount is raised from $4 million to a maximum of $5 million.

In the case of the Post Office Department part of the project, the amount is raised from a maximum of $1 million to a maximum of $3 million.

The conferees felt that that was not only in line with the program, but was advantageous, in view of the 3-year re