Remarks in the Congressional Record of the Senate - June 14, 1950, Pages 8691-8700, 8707-8718

1950 CONGRESSIONAL RECORD-SENATE 8691 IN BEHALF OF SENATOR McCARTHY- Mr. WHERRY. Do I correctly under- I continue to receive, as chairman of the EDITORIAL FROM THE BRIDGEPORT stand that the Senator from West Vir Joint Committee on Foreign Economic POST ginia moved that the Senate insist upon Cooperation, protests from the insurance [Mr. McCARTHY asked and obtained leave its amendments? industry pointing out the fact that the to have printed in the RECORD an editorial Mr. NEELY. That is correct. American industry is being discriminated entitled "In Behalf of Senator McCarthY," The VICE PRESIDENT. The question against in the countries we are furnish- published in the Bridgeport Post for June is on the motion of the Senator from ing aid under the ECA program. 7, 1950, which appears in the Appendix.] West Virginia. Mr. President, I ask unanimous con- A COMMITTEEMAN WRITES ABOUT PMA The motion was agreed to; and the sent to have the report to which I have [Mr. HUMPHREY asked and obtained leave Vice President appointed Mr. HUMPHREY, referred, as well as the exchange of let- to have printed in the RECORD an article en- Mr. FREAR, and Mr. LANGER conferees on ters between myself and Mr. Hoffman, titled "A Committeeman Writes About PMA," the part of the Senate. printed in the REÇORD as a part of my written by Miles A. Nelson, county commit- teeman, Itasca County, Minn., and published MARINE INSURANCE IN THE ECA remarks. in the Farmer Union Herald of June 5, 1950, PROGRAM There being no objection, the matters which appears in the Appendix.] referred to were ordered to be printed in Mr. McCARRAN. Mr. President, I the RECORD, as follow: THE CRITICAL FARM SITUATION IN hope I may have the attention of the MARINE INSURANCE IN THE ECA PROGRAM WISCONSIN Senate while I discuss and ask to have inserted in the RECORD certain matters CHANGE IN ECA POLICY [In accordance with the authority granted Mr. WILEY on June 2, 1950 (CONGRESSIONAL coming from the so-called watch-dog On September 13, 1948, ECA announced RECORD, p. 8088) there was submitted for committee of the House and Senate. I that it would no longer allocate dollars for Mr. WILEY today a statement prepared by shall require about 2¹/² minutes to pre- the payment of marine-insurance premiums. him on the critical farm situation in Wis- Its statement was as follows: sent each of two matters for the RECORD, consin, which appears in the Appendix.] "WASHINGTON, September 13.-In a further if I may have unanimous consent to move to emphasize private trade practices in LEAVES OF ABSENCE occupy that time. the ECA operations as directed by Congress, On his own request, and by unanimous The VICE PRESIDENT. Is there ob- Paul G. Hoffman, Economic Cooperation Ad- consent, Mr. LEHMAN was excused from jection? The Chair hears none, and it ministrator, announced today that no ECA attendance on the session of the Senate is so ordered. funds will be allocated in the future to cover Mr. McCARRAN. Mr. President, since the cost of insurance premiums for ECA- for the remainder of the day in order to financed cargoes. In the future insurance go to New York to address a gathering the beginning of the ECA program the for cargoes will be handled by the exporter this evening. matter of marine insurance in and importer as they desire, similar to export- On his own request, and by unanimous gram has been one of considerable con- import procedures that have prevailed in consent, Mr. WILLIAMS was excused from cern to the industry of this country. In private trade transactions. attendance on the sessions of the Senate the early days of the program, ECA pro- "New procurement authorizations will not for the remainder of today and tomorrow, vided funds to cover marine insurance carry allocation of ECA funds for insurance on shipments abroad. Some months premiums, but use of such funds authorized in order to attend the Del-Mar-Va chick- later the Administrator changed this in past procurement authorizations will be en festival. honored, Hoffman said. Mr. DARBY. Mr. President, it is policy and announced that he would no "The new ECA policy on insurance pre- necessary for me to get some information longer allocate dollars for the payment miums is based on the belief that such relative to the raising of chickens in of marine-insurance premiums. Many ECA funds as might be required for insur- Kansas, by going to Delaware tomorrow protests were raised by the industry, and ance premiums could better be used for proj- to attend the Del-Mar-Va chicken festi- these protests were forcibly called to the ects more closely related to the main ECA attention of the Joint Committee on objective of recovery in the participating na- val. I ask unanimous consent to be ab- sent for that purpose. Foreign Economic Cooperation. The tions. This new policy is threefold: Mr. LUCAS. Mr. President, reserving staff of the joint committee made a "1. ECA will not finance insurance pay- ments directly or indirectly. Losses of ship- the right to object, will the request be study of the matter and prepared a re- ments will be regarded as a program expense repeated, please? port on the situation last year. After and will require counterpart deposits by the The VICE PRESIDENT. The Senator this report was prepared, the Joint Com- country in local currency. mittee on Foreign Economic Cooperation "2. Participating countries or their import- from Kansas has said that it is necessary held hearings at which members of the ers may insure as they desire, using any cur- for his to attend the chicken festival in Delaware tomorrow, in order to obtain insurance industry and officials of the rency they choose for payment of premiums. some information for the chicken raisers ECA appeared and testified with respect ECA will not decide whether cargoes should or should not be insured. in Kansas. to the ECA policy. "3. In the event of losses, no adjustment Mr. LUCAS. Then I have no objec- As a result of these hearings and the will be made in the local currency counter- tion. studies made by the staff of the joint part funds of the participating countries. The VICE PRESIDENT. Without ob- committee, I submitted an amendment "Hoffman-said that administrative as well to the ECA extension authorization last as legal and economic considerations pointed jection, leave is granted. year which was adopted by the Senate to the wisdom of avoiding ECA involvement On his own request, and by unanimous and finally passed the Congress in a re- in insurance financing." consent, Mr. LANGER was excused from at- vised form. This amendment provided Under this shift in policy the premíum tendance on the sessions of the Senate that the ECA Administrator should pro- on insurance during transportation from from Thursday, June 15 until Tuesday, vide dollar funds for the payment of in- factory to shipside is still absorbed by ECA June 27. as a part of the seller's price on sales f. a. s. surance premiums on commodities pur- CERTAIN BENEFITS TO ANNUITANTS WHO (free at shipside), but insurance during chased in the United States where such transportation from American wharf to Eu- RETIRED PRIOR TO APRIL 1, 1948 insurance was placed on a competitive rope is not so absorbed. The protest of the The VICE PRESIDENT laid before the basis in accordance with normal trade marine insurance industry against this de- Senate a message from the House of practices prevailing `prior to the out- cision of ECA is directed to the point that Representatives announcing its disagree- break of World War II. ECA's theory of fostering private channels of trade cannot be realized in practice so long ment to the amendments of the Senate to Subsequent to the passage of this leg- as foreign governments control foreign trade the bill (H. R. 4295) to provide certain islation, the ECA issued a revised regu- through currency controls. Such controls benefits for annuitants who retired under lation which was supposed to give effect permit foreign governments to order their the Civil Service Retirement Act of May to the change in the law. I do not think nationals to procure insurance in their own 29, 1930, prior to April 1, 1948, and re- the regulation gave full implementation national markets and, necessarily, in their questing a conference with the Senate on to the intent of Congress in enacting the own currencies since no dollars will be re- the disagreeing votes of the two Houses amendment to which I have referred. leased for the payment of premiums. Such thereon. On July 18 of last year I wrote the Ad- a directive, issued by the French insurance syndicate, will be found in appendix I. Mr. NEELY. I move that the Senate ministrator of the ECA, pointing out my The reasoning of ECA by which it justifies insist upon its amendments, agree to the objection to the revised amendment its change in policy will be found in a re- request of the House for a conference, issued by the ECA and he replied under port to its advisory committee on insurance, and that the Chair appoint the confer- date of July 26 in a letter which I do not appendix II, page 5. Two marine insurance ees on the part of the Senate. consider satisfactory. Since that time, associations have filed with the staff a memo-