Newspaper Article re Resolution to Study Lobbying by Foreign Governments

1951 LOBBYING INQUIRY The Proceedings in Washington G. ( SOUGHT BY MORSE YESTERDAY treaty before end of summer N (July 5, 1951) seen by informed officials. Senator Wayne Morse of Ore- THE PRESIDENT gon announced he would intro- Presented Medals of Honor to duce a resolution into foreign Trum Senator to Press for Sweeping four heroes of Korean fighting. Governments' lobbying to influ- ence our foreign policy. App Investigation of Foreign Appealed, along with Eric Recessed at 4:15 P. M. E Johnston, for strengthened con- THE HOUSE Government Influence trols. Held routine session and ad- Callers included Secretary journed at 5:10 P. M. WA Acheson, John C. Wiley, Ambas- F. B. I. asked public aid in Presid sador to Panama, and Millard tracking down eight fugitive CHINA GROUP FACES STUDY E. Tydings, former Senator from Repub Communists. Maryland. Petroleum Administration Young THE SENATE drafted order barring the instal- eral I Held routine session. lation of new equipment for trict Data on U. S. Help for Chiang burning natural gas. A "consumption tax," de- Sen Assembled on Truman Order signed to tap $130,000,000,000 SCHEDULED FOR TODAY Demo of personal income, was urged (July 6, 1951) greete -Parties Divide on Scope on the Senate Finance Commit- Senate and House meet at said t) tee by the National Association noon. Trum of Manufacturers. The President meets with Cab- If c By ANTHONY LEVIERO Signing of Japanese peace inet at 11 A. M. 55-yea Special to THE NEW YORK TIMES. would WASHINGTON, July 5-Sen- termined only that there is no sources that could be better used ator Wayne Morse, Republican of the re evidence that any of the specula- by China for reconstruction." Oregon, announced today that he Golds) Certain members of Congress would introduce tomorrow a reso- tors were allied to the Communist lution calling for a thorough in- Peiping regime. are interested in tracing some of ocrat. this gold to the accounts of Chi- public vestigation of lobbying by foreign How the soybean speculation nese now in the United States but eral b Governments seeking to influence would fit into a China Lobby in- United States foreign policy. it is doubted on Capitol Hill that The Such an inquiry, if it material- quiry remains to be seen. It is even the power of the Congres- prise, izes, is expected to focus on the generally contended, however, that sional subpoena is likely to find Youn; so-called China Lobby. Mr. Morse many wealthy Chinese now in this the hiding place of American gold Presi has shown particular interest in country increased their riches by that was placed on the open mar- public this lobby and demanded an in- taking advantage of the huge ket in China in wartime. main quiry into its activities June 6 sums that this country poured into very during the investigation of the dis- China in an effort to stabilize its D. P. IS ELECTED BISHOP win missal of General of the Army monetary system and its economy. M1 Douglas MacArthur. There is strong resentment among Rumania. Episcopate of America Hous The Executive Branch of the some Senators who know the facts rey Government, on orders of Presi- about the soybean speculators. Names Dr. Trifa of Cleveland mad dent Truman, is assembling data The soybean is an important in- ing gredient in plastics and paints and CHICAGO, July 5 (AP) - The on the lobby. The information will not be made available to Congress. varnish and is a protein food fed Rumanian Orthodox Episcopate of reas Dean Acheson, Secretary of to livestock. It also is used in vege- America has elected Dr. Viorel T. State, announced the President's table shortenings and salad dress- Trifa of Cleveland, a displaced stra: directive while testifying in the ings. person, as its bishop. ship MacArthur inquiry. Adrian Fisher, Asks New Statement on Aid The Episcopate held a special ran general counsel of the State De- meeting in Chicago July 1-3 to ber. partment, is coordinating the ef- One Democratic leader, inde- name a bishop to replace the Right well forts to gather information. The pendent of the President and other Rev. Policarp Morusca. "chal Treasury and Agriculture Depart- interested groups, has called on the The Rev. Victor Barbulescu, a Feder ments are known to be assembling State Department for a new state- member of the Episcopate's coun- tal in data. ment of fiscal aid to China and is cil, said Bishop Morusca returned Mr. expected to present it to Congress to Rumania for a visit in 1939 and Parties Differ on Scope ty an within the next few weeks. has since been prevented from befor Since the cry for an investiga- The figures, newly revised, show returning to this country, first by term tion during the MacArthur inquiry, that all told, including lend-lease World War II and now by the the China Lobby has become a and wartime and post-V-J Day aid, Communists. post par party issue, with Democrats rather Congress authorized in goods and Father Barbulescu said Bishop more eager for it than are the credits for China a grand total of Morusca was being held in "home Republicans. $3,523,400,000, of which $3,408,200,- confinement" in Rumania. The The inquiry, as viewed by the 000 actually was disbursed. The episcopate, he said, "flatly rejects Democrats, might lead to a full Nationalist Government has repaid the interference of Communist exposure of those who are reputed $171,300,000 of the credits. authorities in church life in Ru- to have spent great sums and to Of special interest in these fig- mania." have blackened reputations in their ures was the $500,000,000 made Dr. Trifa, Father Barbulescu efforts to win support for the Na- available to China to stabilize her said, came to the United States a tionalist Government of Generalis- currency. Out of this, $200,000,000 year ago from Italy. simo Chiang Kai-shek. The Re- was in hard gold. Some members publicans have countered with de- of Congress and some Government MORE U. S. AGENTS URGED mands to widen the scope of the officials estimate that as much as inquiry to cover lobbying in be- the full amount of this credit has half of the Communist regime that found its way back into this coun- Driscoll Unit Asks Adding of 4 now rules China. On Capitol Hill try into the private accounts of for Jersey Narcotics Control the feeling was that the inquiry wealthy Chinese, former officials would be broadened for this pur- as well as private citizens. Special to THE NEW YORK TIMES. pose if the Morse resolution passed. The gold and other credits were TRENTON, July 5-A commit- Aid to China, which has amount- made available for exchange for tee of Governor Alfred E. Dris- ed to more than $5,000,000,000 in Chinese money. The official ver- coll's cabinet members recommend- goods and credits since 1937, is dict of the Truman as well as ed today the addition of four Fed- expected to figure prominently in the Roosevelt Administration was eral narcotics agents in New Jer- any inquiry. The President's ac- that the stabilizing program was sey to stem importations. tion in ordering the search for a failure, Henry Morgenthau, Attributing the rise in narcotics data, as well as the attitude of cer- former Secretary of the Treasury, use to illicit imports, the group tain Democratic Senators, indi- gave a reason for the the failure reported to the Governor that two cated that the Democrats felt they in these words from a memoran- agents were trying to enforce im- had not much more to lose by dum to Mr. Roosevelt and quoted portation bans in all of New Jersey still another scrutiny of the fig- in a China White Paper [official and part of Pennsylvania. ures. Long ago the Administra- State Department document]: The committee suggested that tion wrote off the Nationalist re- "China now has $460,000,000 of the Federal Government rearrange gime as politically and morally unpledged funds in the United its hospital facilities to accommo- bankrupt, although, under the ex- States and is getting about $20,- date more addicts. Many beds re- igencies of the Korean war, it has 000,000 a month as a result of our served for other ailments, the re- resumed aid to the Chiang regime expenditures. China could use these port said, were unused. on Formosa, funds in selling gold or dollar as- Kohlberg Prominent on List sets for yuan [Chinese major unit L. I. U. Session Begins July 16 The China Lobby, despite refer- of currency comparable to the Long Island University will be- ences to it in and outside Congress, United States dollar] although in gin its second six-week summer never has been presented in any my opinion such schemes in the session July 16. Registration will tangible shape. Members of Con- past have had little effect except be held Wednesday. The session of- gress interested in its operations to give additional profits to in- fers a full semester's credit in his- have been able to refer only to the siders, speculators and hoarders tory, philosophy and other fresh- list of lobbyists registered with and dissipate foreign exchange man subjects. Congress. Most prominent among these is Alfred Kohlberg, an importer of Chinese textiles, who has said he POLAROID furnished some of the data used by