Mr. MAYBANK. Mr. President, on behalf of myself, the Senator from Arizona [Mr. HAYDEN], the Senator from Georgia [Mr. RUSSELL], the Senator from Nevada [Mr. MCCARRAN], the Senator from New Mexico [Mr. CHAVEZ], the Senator from Alabama [Mr. HILL], the Senator from West Virginia [Mr. KILGORE], the Senator from Arkansas [Mr. McCLELLAN], and the Senator from Washington [Mr. MAGNUSON], I submit and send to the desk an amendment which I believe will cure all the evils that so many Senators have talked about. I submit the amendment at this time, so that it can be studied between now and tomorrow noon, because I understand we shall be considering this bill for several days. The PRESIDING OFFICER. The amendment will be stated.

The LEGISLATIVE CLERK. On page 28, in line 5, it is proposed to strike out "$3,495,000,000" and insert in lieu thereof "$3,895,000,000."

Mr. MAYBANK. Mr. President, will the Senator from Alabama yield for a parliamentary inquiry?

a year before the attack came in Korea. I closed my remarks on that occasion with these words:

I feel that there is no more tragic, deplorable chapter in American history than the chapter that tells the story of Corregidor and Bataan. We sat here in Washington knowing the desperate situation which faced our American boys at Corrigedor and Bataan. We knew that most of them would have to give their lives because we were powerless to send them help. There was not anything we could do. We knew it would take months of time before we could prepare, before we could build up our striking force, and before we could really go out into the Pacific and carry the war to the enemy.

God forbid that the time will ever come

again when this Nation, with all its might, and all its wealth, and all its power, will have to stand helpless and see its sons in the danger and in the tragic situation we found our boys facing at Corregidor and Bataan.

Those were my words, a little less than a year before Korea. Korea came, and we know that we were forced to send our boys to Korea, most of them illtrained, most of them unprepared. We sent them there, and many of them died, just as our boys had died at Corregidor

and Bataan. Many of them suffered the

fore the Senate.

The PRESIDING OFFICER. The Chair informs the Senator that it is now before the Senate, as the pending question.

Mr. MAYBANK. Mr. President, a parliamentary inquiry.

The PRESIDING OFFICER. The Senator will state the inquiry.

Mr. MAYBANK. I understand the Senate is about to recess until 12 o'clock tomorrow.

The PRESIDING OFFICER. That is the understanding.

Mr. MAYBANK. The distinguished acting majority leader, since I have submitted my amendment, understands that that will be the pending question when we meet, I assume.

The PRESIDING OFFICER. It is so understood by the Chair.

Mr. HILL. Mr. President, the question before the Senate is, Shall we eliminate funds and reduce our airpower, rather than step up that airpower so as to close the gap between our airpower and that of Russia? Shall we force the dismissal of trained officers? Shall we prevent the construction of needed bases? Shall we eliminate the services of needed personnel? Shall we cut down on the training of pilots? Instead of moving forward, building the strength of our Air Force, of our airpower, shall we turn backward?

Mr. President, much has been said today in the debate with reference to the discussion which took place in the Senate on August 26, 1949, at which time there was a debate over the reduction of the Air Force from 58 groups to 48 groups. I not only supported as strongly as I could the proposal not to make that reduction; I not only opposed as vigorously as I could that reduction but I also spoke on that occasion; and I wish to close my speech by quoting a few words from what XCIX-598

same tortures our boys had suffered at Corregidor and Bataan. Many of them had to pay, for our failure properly to prepare our Armed Forces, the same price as the price that was paid by the boys at Bataan and Corregidor.

I close my remarks here tonight with that same prayer. I pray God that, with all the might and all the wealth and all the power and all the strength of the United States, we may use that wealth and power and strength so that American boys will never again have to suffer and die as our boys were forced to do at Corregidor, Bataan, and in Korea.

Mr. President, if we again find our selves in a similar situation, it may not be only American boys in some far-away places, such as Corregidor, Bataan, and Korea; it may be American men, women, and children dying literally by the miland children dying literally by the millions in the United States. We may even find our great industries are despoiled so that we cannot wage war for the preservation of our country, for the preservation of our freedom, and of our free institutions.

I pray God that we may meet the challenge of the hour and give our America lenge of the hour and give our America the strength and the power she must have to insure her preservation, to insure the safety of the lives of our people, and the preservation of America's free institutions.

LEGISLATIVE PROGRAM During the delivery of Mr. HILL'S speech,

Mr. KNOWLAND. Mr. President, will the Senator from Alabama yield to me, with the understanding that in doing so, he will not lose his right to the floor? I wish to make an announcement at this time.

Mr. HILL. Mr. President, I yield for that purpose, if I may have unanimous consent to do so.

The PRESIDING OFFICER. Is there objection? The Chair hears none, and objection? The Chair hears none, and

I wish to call the attention of the Senate to the fact that I have already given to the minority leader the list of a number of bills we hope to take up when the Senate completes action on the pending bill. I believe most of the bills on the list are either noncontroversial or relatively so; though in this body, as I think the Members know, one can never tell when a noncontroversial bill may become controversial. At any rate, I shall state the calendar numbers, but the measures will not necessarily be taken up in this order. The list is as follows: Calendar No. 601, Senate Joint

Resolution 96; Calendar No. 603, Senate Resolution 147; Calendar No. 362, H. R. 4484; Calendar No. 608, House Joint Resolution 253; Calendar No. 607, House Joint Resolution 228; Calendar No. 590, S. 711; Calendar No. 578, H. R. 2236; Calendar No. 583, H. R. 2828, possibly; Calendar No. 520, H. R. 2824.

In addition to that, there is House bill 157. I do not know whether it will be taken up tomorrow-there is no calendar number on it but at any rate I want the Senate to be on notice that it may be taken up tomorrow.

In addition to that, we have at the desk the conference report on the independent offices appropriation bill. While it is a privileged matter, I hope that it will not be called up until we dispose of the pending bill. If we become involved in a prolonged discussion tomorrow, I might then ask the Senate to take up the conference report on the independent offices bill as a privileged matter. But I would prefer, if possible, to complete action on the armed services bill.

wonder whether the acting majority Mr. HUMPHREY. Mr. President, I leader would assure us again that, at the time we take up the conference report on the independent offices bill, we might have a quorum call preceding its consideration.

Mr. KNOWLAND. Yes. The Senator may have assurance that before we take up the conference report on the independent offices bill there will be a quo

rum call.

Mr. KNOWLAND. I should like to say further that, as a normal procedure, there will be a morning hour before we take up the unfinished business tomorrow, in order that Senators may make insertions in the RECORD, and so forth. But the unfinished business is the armed services appropriation bill, and the amendment of the Senator from South Carolina [Mr. MAYBANK] is the pending question.

Mr. MAYBANK. I appreciate that, and, of course, I would have no objection to the amendment's being taken up after there has been a morning hour, and then when we conclude consideration of the pending bill, have taken up the conference report on the independent offices.

bill, which was sent over by the House. Mr. KNOWLAND. Yes; I think the report was agreed to by the House yesterday.

stricken regions. The farmers, ranchers, and livestock producers of the Nation have suffered a calamity of which the Members of the Senate are fully

ture and extent of a drought which has forced sacrifice sales of hundreds of thousands of the livestock population. In many areas, cattle and other liveIn many areas, cattle and other livestock have been completely removed from the parched and barren ranges of entire counties.

Secondly, the people of Texas appreciate the interest of the President, the Congress, and the Secretary of Agriculture in the problem with which we are confronted.

The President's personal visit to Texas to meet with southwestern governors and cattlemen brought great encouragement. His grant of $8 million from disaster funds will help furnish feed at cheaper prices. The prompt action of Congress in passing the emergency-loan bill will assist farmers and ranchers in refinancing their loans and salvaging their livestock herds and lands. I express to the Senate, to the President, and the administrative agencies the deep gratitude of Texans for the effective and prompt response to the critical needs of the drought area. These actions have been effective in halting the complete demoralization of the cattle market. Much has been accomplished. Finally, however, it is only fair to say that much more remains to be done, throughout the entire drought belt. The slow-moving aid which begins after the damage is done is not enough to solve the problem for the present or the future. It provides temporary short-term relief without providing a truly permanent solution.

The one great handicap in fighting droughts is that we do not know-at the time-when they start. We welcome the

DEFENSE DEPARTMENT APPROPRIATIONS, 1954-AMENDMENTS

Mr. DOUGLAS submitted amendments intended to be proposed by him to the bill (H. R. 5969) making appropriations for the Department of Defense and related independent agencies for the fiscal year ending June 30, 1954, and for other purposes, which were ordered to lie on the table and to be printed.

THE DROUGHT DISASTER

Mr. DANIEL. Mr. President, this week I have returned from a visit to Texas, where I had opportunity to observe and study firsthand the effects of the present drought disaster.

The harmful effects of this disaster are not limited to Texas or to the Southwest. The resulting injury to the cattle industry has been felt in every section of the Nation because of the sacrifice sales of cattle in the vast drought

rain. We do not begin to fight back until it is too late. This is not a provident course.

Our great need today is for a longrange State-Federal program of droughtcontrol, as well as treatment of the livestock industry on a par with other agricultural pursuits.

We must begin now a permanent program for cooperation between the States and the Federal Government to meet present and future needs by permanent drought-control programs along the lines of our flood-control programs.

Through the Corps of Engineers, we have spent more than $3 billion on floodcontrol projects throughout the Nation. It is estimated that the annual flood damage-if we had no flood-control projects-would be $800 million nually. The flood-control projects now in operation prevent flood losses totaling $300 million annually.

Floods come quickly, and pass quickly. For those in the path of the flood, there always is high ground nearby. When the flood has passed, rebuilding is a

process of manual construction-replacing and repairing the steel and lumber of damaged homes and buildings.

Droughts come slowly and pass slowly. There is no shelter, no safe refuge. The loss from a drought can never be fully replaced or rebuilt by man. The effects reach deeply into the whole economy.

Today the fiscal resources of the municipalities in the drought regions are being heavily burdened by the cost of developing new water-supply sources. The industrial expansion into the Southwest is threatened by the prospect of future water shortages. The State and local governments face the prospect of increasing tax delinquencies handicapping their performance of public services and duties. Federal tax collections will suffer, too.

It is clear, in my view, that the States and the Federal Government alike must apply their greatest efforts toward effective, long-range programs of drought control.

We must develop better programs than we now have-on both levels. We must be able to move more quickly, more effectively to supply assistance. We must delineate the lines of authority and responsibility with greater care. The States must assume a much more active role.

Through these joint efforts, we must be niggardly about saving and holding the rainfall in wet years; we must be hardheaded about keeping our industrial and agricultural operations based on a level which available water supplies will support; we must develop better drought-resistant grasses and breeds of stock; we must improve our farming methods; we must effectively hold our soil in place; we must calculate drought as a factor in all municipal and State planning and financial programs.

Where State and local laws are inadequate or outdated, we must recognize the necessity for change-so that the local units of government will not be helpless to assist their own people in seasons of drought.

Specifically it is my hope and recommendation that the President will place this problem as number one on the agenda of the new Commission on Intergovernmental Relations, established by this Congress in Public Law 109. I feel, too, that it would be appropriate during the interim between sessions this year for Congress to establish a joint committee to work on this problem alone in search for an answer.

We must not and we need not allow drought disasters to be the open door for Federal regimentation to enter into control of any region. We must control droughts by joint effort or else, in the not-too-distant future, droughts will control us.

RECESS

Mr. KNOWLAND. I move that the Senate stand in recess until 12 o'clock noon tomorrow.

The motion was agreed to; and (at 9 o'clock and 54 minutes p. m.) the Senate took a recess until tomorrow, Thursday, July 23, 1953, at 12 o'clock meridian.

NOMINATIONS

Executive nominations received by the Senate July 22 (legislative day of July 6), 1953:

DIPLOMATIC AND FOREIGN SERVICE Raymond A. Hare, of Iowa, a Foreign Service officer of the class of career minister, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to the Republic of Lebanon.

Cavendish W. Cannon, of Utah, a Foreign Service officer of the class of career minister, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to Greece, and to serve concurrently and without additional compensation as chief of the American Mission for Aid to Greece.

The following-named persons, who were appointed during the last recess of the Senate, to the offices indicated:

For promotion from Foreign Service officers of class 1 to Foreign Service officers of the class of career minister:

Theodore C. Achilles, of the District of Columbia.

Cavendish W. Cannon, of Utah.
Gerald A. Drew, of California.
Raymond A. Hare, of Iowa.

Edward B. Lawson, of the District of Columbia.

Now a Foreign Service officer of class 1 and a secretary in the diplomatic service, to be also a consul general of the United States of America:

Everett F. Drumright, of Oklahoma.

For appointment as a Foreign Service officer of class 1, a consul, and a secretary in the diplomatic service of the United States of America:

Robert P. Terrill, of California.

Now Foreign Service officers of class 2 and secretaries in the diplomatic service, to be also consuls general of the United States of America:

Erwin P. Keeler, of Indiana.

C. Montagu Pigott, of California.
Edward E. Rice, of Wisconsin.

For appointment as Foreign Service officers of class 2, consuls, and secretaries in the diplomatic service of the United States of America:

Mallory Browne, of Virginia.
Alfred Puhan, of New Jersey.

William R. Tyler, of the District of Columbia.

Francis T. Williamson, of Virginia.

Now Foreign Service officers of class 3 and secretaries in the diplomatic service, to be also consuls general of the United States of America:

Edward Anderson, of Florida.
John B. Holt, of Maine.

John P. Hoover, of California. William Witman, 2d, of Pennsylvania. For appointment as Foreign Service officers of class 3, consuls, and secretaries in the diplomatic service of the United States of America:

Robert N. Anderson, of California.
John M. Kennedy, of Virginia.

Coburn B. Kidd, of Oklahoma.

Vernon L. Phelps, of Illinois.
Joseph Sweeney, of California.

Percy de F. Warner, of the District of Columbia.

Findley Weaver, of Oklahoma.

For appointment as Foreign Service officers of class 4, consuls, and secretaries in the diplomatic service of the United States of America:

Arthur S. Abbott, of Illinois.
Edward Anderberg, of New York.

H. Reid Bird, of Utah.

Mrs. Elizabeth C. Bouch, of Oregon.
G. Edward Clark, of New York.
Francis J. Galbraith, of South Dakota.
Miss Constance L. Grant, of Massachusetts.
William F. Gray, of North Carolina.

Albert Harkness, Jr., of Rhode Island.

L. Douglas Heck, of Maryland.
Valdemar N. L. Johnson, of Florida.
William B. Kelly, of Ohio.

Duncan A. D. Mackay, of New Jersey.
Harold M. Midkiff, of Florida.
Givon Parsons, of Texas.
Albert A. Rabida, of Colorado.
Robert E. Read, of New York.

Elbert R. Williams, of Pennsylvania. Now Foreign Service officers of class 5 and secretaries in the diplomatic service, to be also consuls of the United States of America: Hermann F. Eilts, of Pennsylvania. Curtis F. Jones, of Maine.

For appointment as a Foreign Service officer of class 5, a vice consul of career, and a secretary in the diplomatic service of the United States of America:

Miss Anna E. Simmons, of Texas.

For appointment as Foreign Service officers of class 6, vice consuls of career, and secretaries in the diplomatic service of the United States of America:

John B. Anderson, of Illinois.
Malcolm R. Barnebey, of Texas.
Roger N. Benson, of Wisconsin.
John A. Billings, of Missouri.

Lewis W. Bowden, of the District of Columbia.

William G. Bradford, of Illinois.
William R. Brown, of Ohio.
Charles B. Cook 3d, of Fennsylvania.
Thomas A. DeHart, of California.
Thomas I. Dickson, Jr., of Texas.
William B. Edmondson, of Nebraska.
Alfred J. Erdos, of Arizona.
Leo Espy, of Oregon.

Miss Barbara C. Fagan, of New York. John E. Feissner, Jr., of the District of Columbia.

William Lee Frost, of New York.
Charles A. Gendreau, of Minnesota.
Robert K. German, of Texas.

James E. Goodby, of Massachusetts. Richard C. Harmstone, of the District of Columbia.

Roy T. Haverkamp, of Missouri.
Robert T. Hennemeyer, of Illinois.
Robert W. Kent, Jr., of California.
Lucien L. Kinsolving, of New York.
Burton Kitain, of New Jersey.
Paul H. Kreisberg, of New York.
Jerome M. Kuhl, of Texas.
William W. Lehfeldt, of California.
John A. Linehan, Jr., of Massachusetts.
John Lloyd, 3d, of New Jersey.

John G. MacCracken, of California. David P. Mann, of the District of Columbia.

Thomas G. McGowan, of New York. Thomas N. Metcalf, Jr., of Massachusetts. Harry J. Mullin, Jr., of Kentucky. Miss Marian L. Nash, of Louisiana. Michael H. Newlin, of North Carolina. Donald R. Norland, of Iowa. Richard B. Owen, of Michigan. Russell R. Pearson, of Minnesota. Richard St. F. Post, of Connecticut. Jess F. Reed, of Washington. James F. Relph, Jr., of California. Ralph W. Richardson, of California. Theodore Sellin, of Pennsylvania. Lawrence L. Starlight, of New York. Yancey M. Taylor, of Tennessee. Lewis R. Townsend, of New Jersey. Robert B. Warner, of Michigan. Victor Wolf, Jr., of New York. Thomas A. Wolfe, of New York. Dan A. Zachary, of Illinois. Foreign Service staff officers to be consuls of the United States of America: George A. Berkley, of Pennsylvania. Philo Dibble, of Utah.

Miss Marjorie F. Ferguson, of New York. Arthur W. Hummel, Jr., of Maryland. Donald H. Robinson, of New Jersey. Schubert E. Smith, of Michigan.

Ben A. Thirkield, of Virginia.

John N. von der Lieth, of New York.
Victor E. von Lossberg, of New York.
Walter M. Walsh, of California.

Foreign Service reserve officers to be consuls of the United States of America: J. Howard Garnish, of New York. Milton J. Helmick, of New Mexico. Donald L. Nicholson, of Florida. Foreign Service reserve officer to be a vice consul of the United States of America: Richard C. Salvatierra, of Arizona. Foreign Service reserve officers to be secretaries in the diplomatic service of the United States of America:

William H. Bray, Jr., of Missouri.
Winthrop G. Brown, of Virginia.
William S. B. Lacy, of Virginia.
Howard L. Parsons, of Iowa.

Howard A. Robinson, of Pennsylvania.
William M. Rountree, of Maryland.

DEPARTMENT OF DEFENSE

H. Struve Hensel, of New York, to be General Counsel of the Department of Defense.

CONFIRMATIONS

Executive nominations confirmed by the Senate July 22 (legislative day of July 6, 1953:

DIPLOMATIC AND FOREIGN SERVICE Joseph Simonson, of Minnesota, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to Ethiopia.

Jesse D. Locker, of Ohio, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to Liberia.

COLLECTOR OF CUSTOMS

William A. Dickinson, of Virginia, to be collector of customs for customs collection district No. 14, with headquarters at Norfolk, Va. DEPARTMENT OF THE NAVY

James Hopkins Smith, Jr., of Colorado, to be Assistant Secretary of the Navy for Air. IN THE ARMY

TEMPORARY APPOINTMENT IN THE ARMY OF THE UNITED STATES

Col. Eugene Mead Caffey, 09329, Judge Advocate General's Corps, United States Army, for temporary appointment as brigadier general in the Army of the United States. APPOINTMENTS, BY TRANSFER, AND PROMOTIONS IN THE REGULAR ARMY OF THE UNITED STATES

The nominations of Lt. Col. George Edward Levings and 668 other officers for appointment, by transfer, or for promotion in the Regular Army of the United States, which were confirmed today, were received by the Senate on July 8, 1953, and appear in full in the Senate proceedings of the CONGRESSIONAL RECORD for that day under the caption "Nominations," beginning with the name of George Edward Levings, which is shown on page 8223, and ending with the name of Joan Hoyt Perry which occurs on page 8226.

UNITED STATES AIR FORCE APPOINTMENTS IN THE UNITED STATES AIR FORCE UNDER THE PROVISIONS OF SECTIONS 504 AND 575, OFFICER PERSONNEL ACT OF 1947 Gen. Lauris Norstad, 25A, to be air deputy to the Supreme Allied Commander, Europe, with rank of general, and as general in the United States Air Force.

Maj. Gen. William Henry Tunner, 374A, to be commander in chief, United States Air Forces in Europe, with the rank of lieutenant

general, and as lieutenant general in the United States Air Force.

Maj. Gen. Donald Leander Putt, 494A, to be commander, Air Research and Development Command, with the rank of lieutenant general, and as lieutenant general in the United States Air Force.

REGULAR AIR FORCE

The nominations of Ellis Harold Wilson and other officers for promotion in the Regular Air Force under the provisions of sections 502 and 510 of the Officer Personnel Act of 1947, which were confirmed today, were received by the Senate on July 1, 1953, and appear in full in the Senate proceedings of the CONGRESSIONAL RECORD for that day, under the caption "Nominations," beginning on page 7800, with the name of Ellis Harold Wilson, and ending on page 7801, with the name of James Francis Patterson.

IN THE NAVY

The following-named women officers of the Navy for permanent appointment to the grade of lieutenant commander in the staff corps indicated, subject to qualification therefor as provided by law:

SUPPLY CORPS

Florence M. Smith

Bettie B. West

MEDICAL SERVICE CORPS

Margaret A. Stirewalt

The following appointments in the Navy or in the Marine Corps:

Winfield F. Hock, Jr. (Naval Reserve Officers' Training Corps), to be an ensign in the Supply Corps in the Navy in lieu of ensign in the Navy as previously nominated and confirmed, subject to qualification therefor as provided by law.

John M. Drabelle, Jr. (Naval Reserve Officers' Training Corps), for permanent appointment to the grade of second lieutenant in the Marine Corps, subject to qualification therefor as provided by law.

The following-named (Army Reserve Officers' Training Corps) for permanent appointment to the grade of second lieutenant in the Marine Corps, subject to qualification therefor as provided by law:

Raymond D. Stultz, Jr.
William J. Sullivan

The following-named civilians to be lieu

tenants (junior grade) in the Chaplain Corps in the Navy, subject to qualification therefor as provided by law:

HOUSE OF REPRESENTATIVES

WEDNESDAY, JULY 22, 1953

The House met at 12 o'clock noon. Dr. Louis H. Evans, minister, First Presbyterian Church, Hollywood, Calif., offered the following prayer:

Father of all nations, if it be true that no sparrow falleth to the ground without Thy knowledge, could any nation rise without Thine aid?

Bless these who guide us and help to shape our tomorrows. May they so serve Thy holy purpose that with clear minds, fair judgments, and unselfish aim they may legislate with confidence knowing that the last maps will always be made in heaven.

May we always remember that to talk with God no breath is lost, to walk with God no strength is lost, to wait on God no time is lost. So Lord teach us to pray. Listening to Thee we shall speak more wisely.

Teach us ever to pray and secure Thine aid lest we become mere helpless thinkers trying to put together a universe that is too big for us.

Saluting Thee as our True Sovereign may this continue to be a land in which all men are royal but no man cares to wear a crown since Thou, O God, art our King.

Our fathers' God, to Thee,

Author of liberty, To Thee we sing;
Long may our land bẻ bright

With Freedom's holy light;
Protect us by Thy might,

Great God, our King.

In the name of Jesus Christ. Amen. The Journal of the proceedings of yesterday was read and approved.

MESSAGE FROM THE SENATE

A message from the Senate, by Mr. Carrell, one of its clerks, announced that the Senate had passed, with amendments in which the concurrence of the House is requested, a bill of the House of the following title:

H. R. 4353. An act to increase farmer participation in ownership and control of the Federal Farm Credit System; to create a Federal Farm Credit Board; to abolish certain offices; to impose a franchise tax upon certain farm credit institutions; and for other purposes.

The message also announced that the Senate insists upon its amendments to the foregoing bill, requests a conference with the House on the disagreeing votes of the two Houses thereon, and appoints Mr. SCHOEPPEL, Mr. THYE, Mr. MUNDT, Mr. HOEY, and Mr. HOLLAND to be the conferees on the part of the Senate.

The message also announced that the Senate had passed, with amendments in which the concurrence of the House is requested, a bill of the House of the following title:

H. R. 5728. An act to authorize the disposal of the Government-owned rubber-producing facilities, and for other purposes.

The message also announced that the Senate insists upon its amendments to the foregoing bill, requests a conference

with the House on the disagreeing votes of the two Houses thereon, and appoints Mr. CAPEHART, Mr. BRICKER, Mr. IVES, Mr. BENNETT, Mr. MAYBANK, Mr. ROBERTSON, and Mr. DOUGLAS to be the conferees on the part of the Senate.

The message also announced that the Senate had ordered that the Senator from Alabama, Mr. SPARKMAN, be appointed a conferee on the bill H. R. 5141, an act to create the Small Business Administration and to preserve small business institutions and free, competitive enterprise, in place of the Senator from Arkansas, Mr. FULBRIGHT, excused.

EXTENDING AND AMENDING THE RENEGOTIATION ACT OF 1951

Mr. REED of New York. Mr. Speaker, I ask unanimous consent for the immediate consideration of the bill (H. R. 6287) to extend and amend the Renegotiation Act of 1951.

The Clerk read the title of the bill. The SPEAKER. Is there objection to the request of the gentleman from New York [Mr. REED]?

Mr. COOPER. Mr. Speaker, reserving the right to object, this bill was favorably reported by the Ways and Means Committee by unanimous vote. Those of us on this side are strongly supporting the bill and we agree with the course the gentleman is taking at this time.

The SPEAKER. Is there objection to the request of the gentleman from New York?

There was no objection.

The Clerk read the bill, as follows:

Be it enacted, etc., That subsection (a) of section 102 of the Renegotiation Act of 1951 is hereby amended by striking out "December 31, 1953" and inserting in lieu thereof "December 31, 1954."

SEC. 2. (a) Paragraph (6) of section 106 (a) (6) of such act is hereby amended by inserting immediately following the second period therein the following: "In designating those classes and types of contracts which shall be exempt and in exempting any individual contract under this paragraph, the Board shall consider as not having a direct or immediate connection with national defense any contract for the furnishing of materials or services to be used by the United States, a Department or agency thereof, in the manufacture and sale of synthetic rubbers to a private person or to private persons which are to be used for nondefense purposes. If the use by such private person or persons shall be partly for defense and partly for nondefense purposes, the Board shall consider as not having a direct or immediate connection with national defense that portion of the contract which is determined not to have been used for national defense purposes. The method used in making such determination shall be subject to approval by the Board."

(b) The amendment made by subsection (a) shall be effective as if it were a part of such Renegotiation Act of 1951 on the date of its enactment.

SEC. 3. (a) Paragraph (1) of section 106 (c) of such act is hereby amended by striking out "from subcontracts" and inserting in lieu thereof "from contracts or subcontracts."

(b) Paragraph (2) of such section 106 (c) is hereby amended to read as follows: "(2) Definition: For the purpose of this subsection, the term 'durable productive equipment' means machinery, tools, or other equipment which does not become a part of an end product, or of an article incorpo

rated therein, and which has an average useful life of more than 5 years."

(c) The amendments made by subsections (a) and (b) shall apply only with respect to fiscal years (as defined in section 103 (h) of the Renegotiation Act of 1951) ending

on or after June 30, 1953.

SEC. 4. Section 106 (d) of such act is hereby amended by striking out the period at the end of paragraph (5) and inserting in lieu thereof a semicolon, and by inserting after paragraph (5) the following new paragraph:

"(6) any contract or subcontract for the making or furnishing of a standard commercial article, if, in the opinion of the Board, competitive conditions affecting the sale of such article are such as will reasonably protect the Government against excessive prices."

Mr. REED of New York. Mr. Speaker, I ask unanimous consent to extend my remarks at this point in the RECORD.

The SPEAKER. Is there objection to the request of the gentleman from New York?

There was no objection.

Mr. REED of New York. Mr. Speaker, H. R. 6287 provides for a 1-year extension, with amendments, of the Renegotiation Act of 1951.

The continuing high level of defense activity makes it essential that the Government be able to renegotiate contracts entered into under the defense program. Renegotiation laws have historically been the proper way for the Government to protect itself from permitting improper surpluses to be derived from war contracts. The Renegotiation Act of 1951 is not applicable with respect to receipts and accruals after December 31, 1953. Our present defense program will not have been terminated by that date. It is, therefore, necessary that an extension of the existing Renegotiation Act be enacted.

In addition to a 1-year extension, H. R. 6287 provides three amendments to existing law. The first amendment is necessary to clear up an ambiguity in existing law which has resulted from the part the Reconstruction Finance Corporation has played in our synthetic rubber program. Contracts with the Reconstruction Finance Corporation are subject to renegotiation and include purchases of materials for the production of synthetic rubber. The synthetic rubber produced in Government-owned plants is sold to provide contractors for civilian purposes as well as defense purposes. The amendment would have the effect of exempting contracts for civilian uses of synthetic rubber.

The second amendment pertains to prime contracts for machine tools. This amendment has been necessitated by the Government's machine-tool stockpiling program. The Government's purchases of machine tools will be subject to renegotiation only to the extent that 5 years bears to the estimated useful life of the tool concerned. This amendment will serve to somewhat mitigate the adverse effect that the stockpiling program will have upon the machine-tools market in future years.

The third amendment concerns standard commercial articles. A provision similar to this amendment was contained in the World War II renegotiation statute, and provided a permissive ex

emption for standard commercial articles, such as concrete. It is considered unnecessary that renegotiation apply to the many competitive articles which are freely distributed in normal commercial freely distributed in normal commercial channels. An example of this is readymixed concrete. To require renegotiation with respect to such articles is to create unnecessary expense, both on the Government and on private contractors.

The Committee on Ways and Means had the assistance of the executive departments in the preparation of this legislation.

The committee amendment which I have sent to the desk merely extends for 1 year the time in which the United States can be substituted for the World War II War Contracts Price Adjustment Board in suits before the Tax Court. If this extension is not granted, a number of suits now pending in that court will be subject to dismissal on a technicality

rather than on the merits.

Mr. COOPER. Mr. Speaker, I ask unanimous consent to extend my remarks at this point in the RECORD.

The SPEAKER. Is there objection to the request of the gentleman from Tennessee?

There was no objection.

Mr. COOPER. Mr. Speaker, H. R. 6287 would extend for another year the application of the renegotiation laws. Our committee felt that since vast sums of money are still being spent for the procurement of needed defense materials and equipment, the excessive profits of contractors should still be subject to recapture through renegotiation.

AMENDING THE INTERNAL

REVENUE CODE

Mr. REED of New York. Mr. Speaker, I ask unanimous consent for the immediate consideration of the bill (H. R. 6426) to amend the Internal Revenue Code to extend the time during which certain provisions relating to income and estate taxes shall apply, and for other purposes.

The Clerk read the title of the bill. The SPEAKER. Is there objection to the request of the gentleman from New York?

Mr. COOPER. Mr. Speaker, reserving the right to object, the same statement applies to this bill as applied to The bill was the one just considered. favorably reported by unanimous vote of the Committee on Ways and Means, and those of us on this side are supporting the bill.

The SPEAKER. Is there objection to the request of the gentleman from New York?

There was no objection.

The Clerk read the bill, as follows:

Be it enacted, etc., That (a) Short title: This act, divided into titles and sections according to the following table of contents, may be cited as the "Technical Changes Act of 1953":

TABLE OF CONTENTS

Title I-Extension provisions Sec. 101. Election as to recognition of gain in certain corporate liquidations. Sec. 102. Extension of time to make election in respect of excessive depreciation allowed for periods before 1952.

Sec. 104. Extension of period of abatement of income taxes of members of Armed Forces upon death.

relating to life-insurance companies.

from additional estate tax of members of Armed Forces upon death.

In addition to a 1-year extension, 3 Sec. 103. Extension of time for making elecamendments were adopted by the comtion with respect to war-loss recoveries. mittee. One of the amendments clears up an ambiguity relating to purchases under contracts with the Reconstruction Finance Corporation of materials Sec. 105. Extension of temporary provisions for the production of synthetic rubber. It is made clear that only those purchases which have a connection with Sec. 106. Extension of period for exemption defense will be subject to renegotiation. Another amendment relating to the renegotiation of contracts for durable productive equipment would extend the treatment now given subcontractors to prime contractors, and the third amendment adds a permissive exemption in the case of standard commercial articles, as was contained in the World War II renegotiation law. In the case of standard commercial products in most instances competitive pricing is an adequate protection to the Government against excessive prices.

Mr. Reed of New York. Mr. Speaker, I offer an amendment.

The Clerk read as follows: Amendment offered by Mr. REED of New York: On page 3, after line 16, insert the following:

"SEC. 5. Section 201 (h) of the Renegotiation Act of 1951 is hereby amended by striking out 2 years' and inserting in lieu thereof '3 years'."

The amendment was agreed to.

The bill was ordered to be engrossed and read a third time, was read the third time, and passed.

House Resolution 345 was laid on the table.

A motion to reconsider was laid on the table.

Title II-Miscellaneous

Sec. 201. Venue of actions for violations of act of October 19, 1949.

Sec. 202. Deduction of certain unpaid expenses and interest. Sec. 203. Basis of certain property transferred in trust.

Sec. 204. Earned income from sources without the United States. Sec. 205. Net operating loss carry-overs. Sec. 206. Amortization deduction for grainstorage facilities.

Sec. 207. Exclusion of certain transfers taking effect at death. Sec. 208. Failure to relinquish a power in certain disability cases. Sec. 209. Reversionary interests in case of life insurance.

Sec. 210. Marital deduction in certain cases where decedent died before April 3, 1948.

Sec. 211. Mitigation of effect of statute of limitations.

(b) Act amendatory of Internal Revenue Code: Except as otherwise expressly provided, wherever in this act an amendment or repeal is expressed in terms of an amendment to or repeal of a chapter, subchapter, title, supplement, section, subsection, subdivision, paragraph, subparagraph, or clause, the reference shall be considered to be made to a provision of the Internal Revenue Code.