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and friendship. In my presence, he has re- creased in order to level the balance of pay- large purchases there, with the purpose of peatedly emphasized his contempt for the ments, which, up to then, had been totally deceiving the Japanese into buying a conJapanese Government, for its businessmen, favorable to the Castro-Communist regime. siderable amount of sugar. The Japanese and for the people of Japan.
The figures were the following: In 1962, the fell in the trap, bought the sugar, and the Mr. President, I ask unanimous con- Japanese market; in 1963, it made $12 milCastro regime made $14 million from the Communist trade mission departed without
signing a single buying contract. sent that Gilberto R. Alemany Vilar's lion; not less than $8 million in 1964; and This is the kind of people that, by force, press conference, as printed in full in
in 1965, after Japanese imports have been run the national destinies of our homethe Movimiento Unidad Revolucionaria banned in Cuba, it is figured that Castroite land. People who live by lies, treason, and be inserted into the RECORD at this point. revenues from the Japanese market will deception.
There being no objection, the state- amount to at least $14 million, after making Many important Japanese firms are aware ment was ordered to be printed in the due allowance for the current low price of of this and have suspended all trade dealRECORD, as follows:
sugar. This adds up to a total of $48 million ings with Cuba. But, unfortunately, other
within a 4-year period, which is equivalent firms such as Hitachi, Mitsui & Co., Iwai, STATEMENT BY GILBERTO R. ALEMANY VILAR to a monthly million dollars worth of eco- Kanematsu, Sumitomo, C. Itoh, Nissho and
My name is Gilberto R. Alemany Vilar, and nomic assistance being paid by Japan to the others, are still trading with the Castro rea Cuban who, up to a short while ago, held Castro-Communist regime. To all practical gime through dummy companies such as the post of trade counselor to the Cuban purposes, this is the absolute truth, and Shinnihon, Abe Trading Co., Toho Busan, Embassy in Tokyo, Japan. I have held this there is no sense in putting it in milder Kyodo Trading, and others. office for 312 years, and it is now that I pubterms.
The lies and falsified figures employed by licly resign it.
And, what has Fidel Castro done with all the Communists to maintain and increase I studied business and law in Cuba. that money? The answer is simple. First, their trade relations with Japan and other Through my fellow workers of Unidad Revo- he has used the dollars earned from Japan free-world nations were duly exposed by mylucionaria, with whom I have been collab- to pay long-term credits granted him by self in a letter addressed to the Japanese orating, I am requesting that the Govern- British, French and other Western European business firms that still maintain such relament of the United States grant me political firms. Thus, although the Japanese have tions with Castro-communism. In that letter, asylum, and I wish to avail myself of this not themselves granted Castro deferred pay- I explained the dangers of continuing such opportunity to explain to the gentlemen of ment terms, they have in fact helped him to relations, which serve only to inject economic the free world press gathered here the rea
obtain such terms from other countries, as assistance to a Communist tyranny such as sons that have prompted me to seek such it is obvious that, were it not for his Japanese Castro's that depends on Japan for over 30 asylum. I began working with the Cuban dollars, he would have been unable to meet percent of its dollar revenues. regime in 1960, when private enterprise had his commitments with European companies I hope that my Japanese friends have unalready begun to disappear in Cuba as a and these would have long withdrawn their derstood the importance of this message and result of what was then called socialization, credit.
I trust that I will someday have the opand which later, as was admitted by Fidel Second, a substantial amount of these dol
portunity to discuss such importance with Castro himself, turned out to be none other lars have been used by the Communist them. than Marxism-Leninism, the doctrinary label régime to promote subversion throughout It is necessary that the Japanese know used to cover the worst of tyrannies.
Latin America, and also to lend financial that with this trade venture with Red Cuba At first I worked at the Ministry of Indus- assistance to the Communist Parties of this they are risking the loss of the Latin Ameritry and, by the end of 1961, I was transferred hemisphere. It is ironical that about 77 can market, whose volume is of vital importo the Ministry of Foreign Trade. In Feb- percent of Japanese investments abroad have tance to Japanese industrial production. ruary 1962, I was appointed trade counselor gone to the same Latin American countries It is also necessary that the Japanese know in Japan.
where Castro-financed violence and terror that the economy of Cuba is in shambles; In that post I was able to observe the ad- directly attempt against political and eco- that the Castro regime does not have the ministrative disorganization that prevailed nomical stability and, consequently, against money to pay its European debts, hence its in my country, the mismanagement of trade Japanese investments in such countries. desperate drive to sell sugar to Japan, in matters, and the Communist Government's See, then, Castro's double deception order to pay such debts with part of the inability to conduct Cuba's foreign trade against Japanese business firms, and the proceeds of these sales while the remainder wisely. As my firsthand knowledge of this use to which he puts the financial benefits is invested in subversion throughout the situation grew, so did my concern over the of his Japanese market.
Americas. The Japanese know that, even fate of my country, and I eventually lost all It is most important that the members though the Cuban people are starving to faith in these men who were ruining Cuba's of the Japanese Trade Mission that currently death and there is no food or milk even to economy and sinking my people in despair visits Latin America seeking to increase feed children, the Communist regime has and starvation.
Japan's exchange and investments in these offered to sell Japan 4,000 tons of frozen Our sovereign nation had been incorpo- sister Republics, take due notice of the above beef. This fact further shows Castro's desrated to the Soviet bloc of satellites by the and carefully analyze the nefarious conse- perate desire to get dollars from Japan with Castro-Communist regime; our impoverished quences being had by Japan's trade with which to cover his debts, promote subversion economy was bartered to the Soviet masters Cuba.
and, at the same time, try to impress the in return for guns and military equipment, To proceed, we shall say that, in 1964, Japanese by offering to sell them foodstuffs and for alleged technical and economic as- under Japanese pressure, afraid to lose the
such as beef, of which there is no exportasistance that has served only to destroy Japanese sugar market, and also prompted ble surplus in Cuba, and the lack of which everything that Cuba had accomplished in by the then high price of sugar in the world is sorely felt by our starving children, the economic and industrial fields during its market, the Castro regime decided on a wild, women, and elders. It would be inhuman for short history as a republic. useless plan of purchases from Japan which
Japan to buy that amount of beef from I visited Cuba twice, in 1963 and 1964, and sunk the Cuban people still deeper in hunger Cuba, and the Japanese firms involved I verified that the situation grew worse every and despair. Over $30 million were spent
should bear in mind that, in their counday: administrative chaos prevailed, and op- buying Japanese radios, electrical appliances try, there exist strict regulations for the pression-illegal imprisonment and execu- and scientific equipment which the Cuban importation of meats as to hygiene, health, tions had reached unprecedented heights. Communists did not know how to use. A purity, and quality of the product which All liberties had been suppressed: freedom of half-million dollars worth of table and glass- would be very difficult to meet under the cirthought, freedom of the press, even freedom ware was also purchased—which leads one to cumstances that prevail in Cuba where of movement. inquire why, since it is no secret that the
there are no veterinarians or technicians. It This situation, which I witnessed with my starved Cuban people have little use for
is very unlikely that the Castro-Communist own eyes, reaffirmed me in the decision, plates and fountains nowadays.
beef will be able to meet such specifications which I already had made, to fight the Castro Having thus misled the Japanese into be
and offer minimal guarantees to Japanese tyranny. I made contact with some friends lieving that the 1964 purchases promised a
consumers. in Unidad Revolucionaria and we began to good, steady Cuban market, the Castro
The Hitachi group of companies has been work jointly toward paralyzing the commer- régime was able to sell them a large quantity selling to Cuba through a number of "dumcial exchange between the Castro regime and
of sugar in 1965. A new deception. The my" companies such as Abe Trading Co. Japan, since the Japanese market is Castro's
truth is that, this year, Communist Cuba The amount of the trade between Hitachi main source of hard currency.
has been unable to buy as little as a single and Cuba, even though vital to the latter, Now, I wish to pass on to explain the man- million dollars worth of merchandise from
means little in relation to the general volner in which such trade relations between a Japan since, in 1964, Castro spent all his
ume of Hitachi's business, since that comfree country and a Communist dictatorship dollars in the manner explained, and those pany is one of the largest business concerns have been taking place. The Japanese have he is getting this year from that country are in Japan. It is necessary that Hitachi knows been the victims of a monumental deception. being used, as we have also said, to pay his that it is an absurdity to continue in this For the purpose of maintaining the sales of European creditors, and in financing sub- game. Hitachi is getting nothing from this Cuban sugar to Japan, which is an important version throughout Latin America. This is trade, but it is risking the credit of its importer of that product, the Japanese Gov- shown by the fact that, early this year, a equipments. For example, the scientific ernment and private firms were told that Castro trade mission visited Japan to give equipment bought from Hitachi by the selfCuba's purchases to Japan would be in- the impression that Cuba was about to make styled Cuban scientist Dr. Yamil Kouri for
an alleged National Center of Scientific Re- lem, even though they are well aware of the fostering the ideals of democratic trade search, have not yet been installed, and in fact that, by doing this, they help sink ? unionism. I ask unanimous consent to Cuba no one-absolutely no one knows how million souls into pain, misery, and poverty. insert in the RECORD two newspaper to operate them. Some of this equipment Lastly, it is necessary that the Japanese articles by the noted labor columnist, has been deteriorating in the warehouse for authorities, the business firms and the peomore than a year, and it will not be long be- ple learn that the Cuban Ambassador to
Victor Riesel, on the good work AIFLD is fore they are absolutely useless. I ask my- Japan, who is all sweet smiles to them, does doing in Latin America. self: What can a powerful concern such as not think much of Japanese integrity and in- There being no objection, the articles Hitachi possibly get from this subversive clination to work. That, being a convinced were ordered to be printed in the RECORD, trade, except international discredit of its Communist, he sees enemies in Japanese as follows: trademark? businessmen, since, to him, they represent
(By Victor Riesel) Osaka's textiles, which were sold to Cuba democracy and free enterprise, so loathsome in fairly large quantities in 1964, should to Marxist-Leninists. He is being a hypo- in the air-conditioned, 12-story skyscraper
CARPINA, BRAZIL.-On any clear day diners harbor no illusions as to their future possi- crite and a faker when he offers them sym
restaurant some 27 miles distant in the huge bilities with the Castro régime. Last year's pathy and friendship. In my presence, he
city of Recife can see well into this desolate purchases were motivated by political rather has repeatedly emphasized his contempt for
area where unemployed peasants and jobless than commercial reasons, as is shown by the the Japanese Government, for its business
sugar mill workers eat a glorified sawdust fact that this year Cuba has hardly bought men, and for the people of Japan.
called farinha. anything in that line. The Castro régime Soon, Mr. Arnold Rodriguez, the Cuban
It has no color, no taste, no food value. is buying its fabrics in Red China in return Vice Minister of Foreign Relations, will ar
But it fills the stomach because it is bulky for Chinese preferential treatment of Cuban rive in Tokyo. The Cuban Ambassador, three sugar. And what is still more serious, there or four politicking members of the Govern
ground-up root. And for a few hours it keeps
children from whimpering for food. are indications that Communist Cuba is ment Party, and the local Communists, will buying Japanese textiles from Spain, in order use Vice Minister Rodriguez to try to de
Occasionally fortune strikes. 'Some of the
220,000 hungry people whose breadwinners to meet her commitments with that country. ceive Japanese authorities and businessmen May Osaka remember that last year the Cas- into believing that Japanese-Cuban trade
are jobless come onto beans or molasses or tro-Communist régime sent a boastful invi- will continue and even increase. This is
edible ants and then the farinha stew does
have a taste. tation for a Japanese textile mission to travel false, and the Japanese Government and to Cuba, and the four Japanese businessmen business must know it.
It is so not only around Carpina, a long who accepted the invitation were unable to Besides the aforementioned economic rea
jeep ride from Recife, the massive metropolis sell a single yard in the island. It was all sons, we wish to make a special call on the
of Brazil's frontier northeast where cowboys a Communist propaganda maneuver, this Japanese people, among whom we have had
still ride in leather hats. Hunger stalks 28 time at the expense of Japanese gullibility. the honor of living for the last 3 years.
million people in this bulge_three times the Japanese sugar importers and refiners are Think of the Cuban women and children
size of France. certainly getting advantages (in the form who suffer poverty and starvation; think of
Jammed in strips between the ocean and of special discounts, and so forth) from im- the political prisoners, who suffer inde
the dried-out mountains, ravaged regularly ports of Cuban sugar. But, aside from the scribable agony in the Red dungeons of by lethal flashfloods, it is the "India” of the moral issue involved in this criminal trade Cuba; think of the thousands of young men
Western World. It is made to order for the by free-world businessmen, it is necessary who have been shot at the infamous execu
Maoists, the Moscovites, the Trotskyites, and that these men pay attention to the fact tion wall; think of freedom, completely
the Fidelistas. They all were here before the that they are excessively relying on supplies crushed in the face of 7 million Cubans. Í military revolution, organizing their peasant by a Communist country in which chaos am sure that the people of Japan would not leagues, spreading hatred against the United prevails, and with which there can be no like to have a Communist regime ruling States, and preparing for “the day.” guarantee as to the certainty of delivery, as them, and that is why I call on them not But these peasants and workers have no happened last June, when Japan had to buy to cooperate with their business to the main- stomachs-empty as they are for hatred. sugar from Colombia and Brazil because the tainance of the Castro-Communist tyranny The other day some 75 of them cheered this Castro government was unable to provide that oppresses the Cuban people and exports reporter simply because the visitor is from the sufficient vessels to ship the sugar.
terror' and subversion to all the peoples of United States. They have seen only a hand
the Americas. This problem gets worse all the time, and
ful of Americans and in that handful is a the tyranny is seriously concerned over it,
These are the reasons why I have re- dramatic story which proves we can win even since the gradual decline of free-world quested political asylum in the United States the saddened and the hungry, even the mothshipping to Cuba is plainly noticeable.
of America, and I avail myself of this op- ers and fathers of naked children, over to example, during the past month of July, portunity to express my gratitude to my freedom's side and keep the Communists from only 26 Western ships docked in Cuban dear comrades of Unidad Revolucionaria exploiting their misery. ports, while during the same month of last for the constant attentions that they have Among the few Americans who have come year a total of 35 free world ships sailed to
had with my family and with myself, and for to this desolation are the small band of men
the opportunity given me today to publicly who have given up the ease of living in the Cuba and as many as 40 did the same in July 1963. As may be seen, this means a express views on the Cuban tragedy.
States to come here as a sort of U.S. labordecline of 65 percent in 1965 in relation to From now on, I shall devote myself, body management private peace corps. They make 1963. There is no doubt that this is a result and soul, to the relentless struggle that will up the team of the local American Institute of the boycott declared by the dockworkers culminate in the destruction of the Castro for Free Labor Development (AIFLD) of of the Americas, as well as of some of the tyranny and in the total eradication of which AFI-CIO President George Meany is activities that are being carried out by our Communism from Cuba and from the intercontinental chairman. compatriots in Unidad Revolucionaria and in Americas.
His support comes not only from American other Cuban exile organizations.
MIAMI, August 27, 1965.
labor but from such corporations as Pan But as is this decline in free-world shipping
American World Airways and General Motors, were not enough, it must be added that the
who want nothing more than to develop vessels that the Castro-Communist regime is
THE AMERICAN INSTITUTE FOR
skilled and knowledgeable labor officials to using for its sugar shipments are, for the FREE LABOR DEVELOPMENT stave off Communist infiltration and to feed most part, old boats, some of them built be
Mr. KENNEDY of Massachusetts. Mr. fore 1940, which are the only ones available
I drove out to Carpina, for here the AIFLD in the charter market. Foodstuffs such as President, the American Institute for will build the
first of 10 regional “centros sugar cannot be transported in these obso- Free Labor Development-AIFLD—was servicos componeses”-centers to service the lete old clunkers, lest they be contaminated established in 1962 by the AFL-CIO to rural working people. Each will be a union with rust. In contact with the old, rusty train Latin American labor leaders.
headquarters costing about $25,000 apiece. iron, sugar loses its natural color, its quality
Working through the Alliance for Each will be constructed with the assistance is affected, and all the well-known phenom- Progress, AIFLD seeks to make possible of the U.S. AID mission. ena that have been publicized by the press the full benefits of the Alliance to Latin
From these centers special services will take place with it. It is necessary that the
radiate into the surrounding countryside. Japanese businessmen think: Even these old American trade unionists through edu
Each headquarters will have movies and a ships, how much longer will they be avail- cation programs in Latin America and big room to which the workers can come to able to the Castro regime in the world charter such programs as worker banks, credit socialize. Each will have a legal adviser. market? They must remember that interna- unions, cooperatives, self-help, low-cost There will be a clinic staffed 3 days a week tional maritime concerns have joint interests housing projects, and other welfare
other welfare with a doctor, a nurse, and a dentist, so perand commitments with other free-world na- projects.
haps children won't die as quickly as they tions that, sooner or later, will keep these
These programs are solidly supported vessels from being used in this traffic that
There will be "kiddie" playgrounds and a helps maintain the slavery of the Cuban by U.S. labor, more than 60 U.S. busi
spot for the women to gather and learn crafts people. It has been British, Lebanese, and ness firms, and the U.S. Government. if they have the time. There will be credit Greek vessels for the most part that, up to The AIFLD is doing an excellent job in unions, joint consumer buying to lower the now, have solved Red Cuba's shipping prob- education at the grassroots level and in cost of food, land leasing associations and SENATE finally an office for planning of rural low agricultural workers' unions and tens of trust laws. While we would have preferred cost housing.
thousands flocked to him. He looked to the to have given the Attorney General even more This is essentially a union-to-union ap- east for his ideology. He believed in rural influence to stop mergers when he thought proach. In a broad sense, the Communist revolution. He thought he could organize competition might be substantially lessened, Party used this technique in Italy. Had the agrarian unions into military and guer- the bill amended by the committee is a vast democratic forces gotten there “fustest with rilla bands.
improvement over previous legislation which the mostest,” as AIFLD is doing here, the He was certain it was possible. The peas only permitted participation of the DepartItalian Communist Party would not now be ants here are much like the Chinese—vastly ment of Justice when desired by the bankrolling up 9 million votes.
illiterate, ghastly impoverished, tilling on ing agencies." But man here cannot live on dreams alone. equally poor soil to which they have been Those views were also signed by Senators There must be food. And the Catholic Re- tied since they were slaves under the DOUGLAS, CLARK and MUSKIE. Now rememlief Services has been getting food from the Brazilian emperor of the last century.
ber that was in 1959, and it was written in food for peace agency back home. It is Francisco Juliao is aware of the power relation to the bill that became law the folshipped to Recife under Public Law 480. that is inherent in trade union organiza- lowing year and became the Bank Merger Then it rolls out into the countryside. But tion-be it amongst the workers in the fields Act of 1960. this takes trucks and the big vans cost or in the factories. As the labor people go, So when the Department of Justice apmoney. So AIFLD has appropriated the frequently, so goes the nation.
parently went farther than that 1960 act funds to carry the food to the hungry fam- Juliao broke with the Moscovities. The seemed to provide, frankly I was pleased. The ilies—600 tons in this district alone.
Russian brand of comrades infiltrated the big 1960 act had made some progress in bringing In a primitive meeting hall we told them industrial unions, from the waterfront to the Department of Justice into the act as more victuals were coming. And perhaps the shops and plants. They believed such a an adviser in every case, I repeat in every some free medicine, too.
base, tied to the pro-Communist Goulart re- case. Somehow their own initiative had carA peasant worker, barefooted but in a clean gime, could launch a revolution from the top. ried them beyond that and brought them Sunday shirt, said slowly in his native Portu- instead of from below.
into direct action beyond our fondest hopes guese:
But they ran second to Juliao. He caught as expressed in those supplemental views. “We want no charity. Give us work." the imagination of the peasants. He sent
So I was concerned about a 1965 bill which There were tears in his voice. The visitor his children to Cuba and wooed Castro and appeared to confine the Department of Juswept a bit, too, as he headed out of the in turn was wooed by the Fidelistas. He went tice to the advisory role set forth in the 1960 white hot sun for the air conditioning and to Peiping and talked with Mao.
legislation. tower restaurant of what we euphemistically Then came the revolution—but not Ju
It was in this context that I offered my call civilization. liao's. The armed forces revolted against
amendment to keep the Justice Department the heavily infiltrated national regime whose
in the bank merger act from now in perMYSTERY IN AMAZONIA
power was based on the muscle of the Com- petuity. Needless to say, I think it repre
munist longshoremen's unions. The mili(By Victor Riesel)
sents a clear and decisive gain for those who tary smashed the Communist unions. The
believe in competition and vigorous antiRECIFE, BRAZIL.-Legends of head shrinknew regime put in new officials as trustees
trust action. ing and majestic giant women warriors along
many of them trained in Washington at the the Amazon and deep in the Brazilian jungle,
Frankly, I was astounded that the AttorAmerican Institute for Free Labor Develop
ney General suddenly but belatedly appeared which covers territory as vast as the United ment.
to attack this bill. When the bill was pendStates west of the Mississippi, always have
ing in the Senate, he was invited and reexcited energetic explorers. But that's fic
invited to appear before our committee. He tion.
had an observer present. I did my best in There is real mystery in Amazonia and this
Mr. ROBERTSON. Mr. President, I
interrogating witnesses to bring out the imneighboring northeast territory-modern inask unanimous consent to have printed
portance of putting the Department of Justrigue centering on an intricate international
tice squarely-by statute—in the act if it military arms smuggling ring whose members in the RECORD a lucid explanation of
were possible. But there wasn't a word, no make Ian Fleming characters appear as ama- the pending bank merger bill by its co- letter, not even a phone call of encourageteurish as silent movie flicker detectives.
patron, the Senator from Wisconsin (Mr. ment from the Justice Department. That smuggling ring, in which are several
PROXMIRE], before the House Committee My amendment keeps the Department of Americans, use fast small planes to leapfrog on Banking and Currency.
Justice in the business of stopping bank the jungle with their cargoes of Communist
mergers that conflict with the antitrust laws China's machineguns, submachineguns, .45s
There being no objection, the state
in perpetuity-forever. and rifles. ment was ordered to be printed in the
What is more, my amendment not only I've followed their routes from Georgetown, RECORD, as follows:
keeps the Justice Department in the ball British Guiana, to Paramaribo, Surinam (the
STATEMENT BY SENATOR WILLIAM PROXMIRE ON game, it significantly improves the Departring's headquarters), over the jungle to
S. 1698, a BILL TO AMEND THE BANK MERGER ment's position. Belem, and on to Recife-a metropolitan area
ACT, FOR PRESENTATION TO THE HOUSE COM- The amendment does this by preventing of 1,100,000, half of whose workers are jobless,
MITTEE ON BANKING AND CURRENCY
banks from merging while suits are pending. underemployed, hungry and desperate. The Brazilian intelligence service claims
I am here to support s. 1698, Senator As a practical matter, it is sure that the to have penetrated the ring, and now the auROBERTSON's bill to amend the Bank Merger
Justice Department will lose cases precisely thorities declare they have the names of the
Act which, as revised by my amendment- because banks have merged following a favorkey smugglers, pilots and couriers-one of
the Proxmire amendment—the Senate Bank- able initial court decision, but before the whom actually hires night club dancing girls
ing and Currency Committee adopted with- court acts on the Justice Department appeal. as a business front.
out dissent and the Senate passed without A court confronted with the sure injury I take the word of the austere Brazilian
objection after the Hart amendment to elim- that unscrambling a merger is likely to Government that these arms have been
inate the exemption for cases now pending impose on innocent borrowers, depositors, bound for the Communist followers of a in court had been defeated.
and stockholders may reluctantly acquiesce jailed congressman named Francisco Juliao,
When this bill came before the Senate
in the merger. friend of Mao Tse-tung and creator of the
Banking Committee, I was, frankly, deeply Since banks are permitted to go ahead peasant workers' leagues in this almost ab
concerned about it. It had been argued that with mergers now when antitrust cases are original bulge of the South American Con
the intent of the 1960 act was to clarify the pending and, of course, do, this provision tinent.
responsibility of bank regulatory agencies of the bill constitutes a clear and decisive I take the word of the courageous young
to act on mergers with the advice but not gain for the antitrust action. priest, Father Antonio Melo, that Juliao is a
with the veto of the Department of Justice. The desirability of this provision of my revolutionary Communist of Peiping persua
Four of the fifteen members of the Senate amendment has been strongly attacked by sion.
Banking Committee in 1959 felt strongly a financial writer, J. W. Livingston, on the I take Francisco Juliao's word for it too. enough about that bill to file the supplemen- ground that it makes it more difficult to There is documentary evidence that he de- tary views at that time. It was one of those merge banks than is now the case. I agree. clared himself a "Marxist-Leninist-Maoist, four Senators.
My amendment was not designed to benefit Castroist, Ben Bellaist” ideologist.
Let me read one paragraph from those banks, but to benefit the public. As the It is unfortunate that the Ho Chi-Minhs views:
committee report states, we recognized this of the world are not discovered by the "out- "Previous bank merger legislation approved provision placed in the hands of the Justice side” across the globe before they hurl guer- by this committee and passed by the Senate Department a considerable measure of aurilla armies at the governments of nations would have given the banking agencies dis- thority which would have to be used with care allied with the United States and interna- cretionary authority to consult with the and discretion, since many banks might feel tional freedom. The Ho Chi-Minhs are of Attorney General. We agree with the testi- they have to abandon a merger at the mere many kinds and come in Western garb, too. mony of the Department of Justice that the threat of a suit by the Justice Department.
Francisco Juliao is one of them. Knowing agencies should consult the Attorney Gen- The committee, therefore, called on the Jusof the hunger and desperation here he set up eral in every instance so that the enforce- tice Department to use this opportunity to headquarters in this city. From it ne ment of the statute shall be uniform and in hold up bank mergers with care and dislaunched the Peasant Leagues. They were line with the enforcement of the other anti- cretion.
And I am glad to say that the Attorney Act of 1960. Under this act, the three bank- merger could no longer be the subject of any General, in his reply to my request for his ing agencies were clearly established as the proceedings under the laws, either by the comments on Mr. Livingston's suggestion to final authorities to approve or disapprove Department of Justice or by private parties eliminate this provision of my amendment, mergers of insured banks. Each Federal through a triple damage suit. stated that this provision provided a "signifi- banking agency had to obtain a report on In the case of mergers already consumcant advantage" over the present situation. the competitive factors involved in each mated at the date of enactment of the bill, Let me repeat the Attorney General writes bank merger from the other Federal bank- a similar exemption would be provided by me this provision of my amendment pro- ing agencies and from the Attorney General. my amendment from all proceedings under vides a "significant advantage." Those are However, it was clear that these advisory the antitrust laws, including both the SherAttorney General Katzenbach's words. I reports on competitive factors were not bind- man Act and section 7 of the Clayton Act, should like to ask that copies of the letters ing on the banking agencies, which were and including both suits by the Justice Defrom the Chairman of the Federal Reserve instructed to consider banking factors, such partment and triple damage suits by private Board and the Attorney General on this as the public convenience and necessity, as parties. point be included in the RECORD.
well as the competitive factors, and which As far as future mergers are concerned, my Now in return for this quid we give two could approve the mergers after this con- amendment leaves the Justice Department very modest quos. First, we limit the De- sideration only if they found the merger in just as free as it is now to institute suits unpartment of Justice to 30 days after the the public interest.
der the Sherman Act or the Clayton Act durfavorable decision of the regulatory agency The Congress specifically decided not to ing the 30 days waiting period. In this conto bring suit, and with the 30 days they make applicable to bank mergers the strict nection, it is pertinent to note that the Jushave to report to the banking agency-in standards of section 7, under which a merger tice Department has 30 days to file a report fact, a minimum of 60 days.
would be denied if it would tend to sub- under the Bank Merger Act, so it would in Since the Department is in this from the stantially decrease competition in any one fact have 60 days in every case. And the beginning in advising the regulatory agency section of the country in any one line of experience of the Federal Reserve Board, as on the competitive facets involved this
commerce, regardless of good motives and shown in hearings this year, is that merger should be ample time. And it removes a demonstrable benefits of one kind or another cases average about 342 months before serious, overhanging threat, which tends to which might flow from the merger.
approval. undermine confidence so essential to banking I have earlier in this statement expressed And, as I have said, my amendment would soundness.
my personal views on that 1960 legislation. be even more rigorous than the present Second, the bill provides that banks that
The Supreme Court in the Philadelphia situation because it would not permit banks have merged will be spared the agony of un- case held that section 7 of the Clayton Act, to merge under any circumstances while such scrambling. This I shall discuss a little fur- as amended by the 1950 Celler-Kefauver anti- a suit was pending. In the Continentalther later.
merger amendment, applied to bank mergers. Illinois case, in the Nashville case, in the But all in all, it seems to me that any fair- While this was contrary to the understand- Crocker-Citizens case, and in the St. Louis minded man would consider this a pretty ing of the Congress and the position the case, district courts, after hearing arguments good trade for a law placing the Department Congress had taken in the Bank Merger Act from the Justice Department and from the of Justice for the first time in a position to of 1960, it is the decision of the Supreme banks involved, permitted the banks to go act on mergers with full legal sanction from Court.
ahead and merge while the suit was pendnow on, and also for a law preventing mergers The Sherman Act also was applied in the ing. This would be impossible under my until final court action.
Lexington case under circumstances not con- amendment. I inserted this provision for Why isn't this an excellent advance for templated in 1959 and 1960. Instead of the two reasons. First, I thought that to permit antitrust, all things considered?
more general standards adopted in the Co- the merger to be effected while the suit was My amendment is a practical solution to a lumbia Steel case, the rigid standards of four pending would prejudice the Department of confused and controversial situation. My railroad cases, widely thought to be obsolete,
Justice in its efforts to win the case and to amendment would leave untouched the prin
were applied to a bank merger with results convince the court to order the breakup of ciple of the applicability of the Sherman
closely approximating the Clayton Act the merged bank. I think the Justice DeAct and section 7 of the Clayton Act to fustandards.
partment is finding this a real problem. Secture bank mergers, in accordance with the The net result of the present situation is ond, I am opposed to any attempt to undecisions of the Supreme Court in the Phila
that the Attorney General, instead of serv- scramble or to break up merged banks. delphia and Lexington, Ky., cases, but it ing in an advisory capacity to the Federal Banks are of real importance to the country, would eliminate the necessity of unscram
banking agencies, may start a suit on his own to the government, and to business, trade bling any future bank merger by providing initiative against any merger, either a future
and the public generally. Most of our money the Justice Department a reasonable oppor
merger or, under the 1950 amendment to supply is in the form of demand deposits in tunity to sue before consummation of the section 7 of the Clayton Act, any merger
banks. Most industrial, commercial, individmerger. My amendment would prevent the effected after 1950, or under the Sherman Act
ual and governmental receipts and payments breakup of banks which have already merged, any merger effected since 1890. It may be are made by check. Most of the Nation's either before these landmark decisions, or recalled that the divestiture order in the Du business depends on bank credit and financpursuant to a district court judgment specifi- Pont-General Motors case applied to stock
ing. It is because of the importance of bankcally authorizing the merger while litigation
acquired in the 1920's, 30 or 40 years before ing to the Nation that we have a national was being carried on, or otherwise. the divestiture was ordered.
bank system, a Federal Reserve System and The present bank merger situation arose Senator ROBERTSON's original bill, s. 1698, a Federal Deposit Insurance Corporation. I out of the completely new and unexpected as he introduced it, would have exempted
thought it would be bad, not only for the interpretation of section 7 of the Clayton completely from the antitrust laws, includ
banks' officers and employees and stockAct, announced in the Philadelphia decision ing both the Sherman Act and section 7 of the
holders, but also, and more importantly, for and the almost equally unexpected decision Clayton Act, all mergers approved under the the banks' depositors, borrowers and trust as to the Sherman Act in the Lexington Bank Merger Act, past, present, and future, accounts and for the government and the case. Up until these decisions it was gen- and all mergers approved by the appropriate public generally. The difficulties which the erally understood that section 7 of the Clay- Federal or State authority before the Bank Government is having in Lexington and New ton Act, as amended by the Celler-Kefauver Merger Act. Senator ROBERTSON felt that York are, I think, clear evidence that these amendment in 1950, did not apply at all to this would restore the situation to what it
are real and substantial problems. the usual bank merger. It was also gener- was thought to be, and what it was for all I included in my amendment an exempally understood that the Sherman Act was practical purposes, at the time of the enact- tion for all mergers which had been conineffective as far as bank mergers were con- ment of the Bank Merger Act and before the
summated at the time of enactment of the cerned; in any event, the Sherman Act had Supreme Court's decisions in the Phila- bill and had not yet been unscrambled. I never been applied to bank mergers by the delphia and the Lexington cases.
did so for two reasons. First, I felt that Supreme Court and had never been used My amendment, as I have said, would pro- most of these mergers had been approved in any court in connection with a bank hibit the consummation of a merger ap- and had been carried out at a time when merger up to March of 1959. Additional proved within 30 days after its approval. there was a general understanding in Conlegislation controlling bank mergers was This would give the Justice Department gress, in the executive branch and among the necessary because the antitrust laws were time to start a suit under the Sherman Act legal profession that bank mergers were for either inapplicable or ineffective with respect or section 7 of the Clayton Act without being all practical purposes exempt from the antito bank mergers. This was the advice given prejudiced by the fact that the merger had
trust laws. to the Senate Banking and Currency Com- already been consummated. If such a suit This was, as you know, the position taken mittee in 1959 by Congressman CELLER, were started, the merger could not be com- by Kaysen and Turner in their book on antichairman of the House Judiciary Committee, pleted until after the suit had been con- trust policy. Without wishing to question and it was the advice given by the Depart- cluded. If, however, the Justice Department the decision of the Supreme Court in the ment of Justice on six different occasions did not sue within this 30 day waiting pe- Philadelphia and Lexington cases, I think it and by the President in his Economic Re- riod or if, at the end of the suit, the Court is fair to say that for practical purposes these ports for 1956, 1957, 1958, 1959, and 1960. decreed that the merger might be carried cases had the effect of new legislation. And
On the basis of this understanding, the out, then the merger would be exempted I think it is appropriate under these circum| Senate decided in 1959, and the House from the laws, including both the Sherman stances to apply to rules established for the
agreed in 1960, to pass the Bank Merger Act and section 7 of the Clayton Act. The first time by the Supreme Court decisions the
same principles against retroactive legisla- ward a workable combination of competition Vietnam, with guerrilla uprisings occurtion and against ex post facto laws as the and soundness, and obviously the Bank Hold
ring simultaneously in Brazil, and UruConstitution applies to laws generally. Fur- ing Company Act of 1956 and the Bank
guay and Colombia and Bolivia and thermore, in several of these cases prelim- Merger Act of 1960 reflected Congress' con- Nicaragua and Guatemala, and then inary injunctions were sought by the Justice cern with banking even more sharply. Department against the merger even before With all its faults, I think our present dual
spreading out to other countries. I said the consummation of the merger, and in some banking system, made up of some 14,000 that we had to make up our minds that of these cases the trial court authorized the commercial banks, divided into 51 different Castro had to go and that Cuba had to be merger on the ground that there was no bank systems, each with its national and liberated so that the countries of the reason to believe that the Government would State bank elements, with branches and Americas could together embark on that be successful. In the case of the approved holding companies limited to the several
true democratic revolution which we in mergers on which no suits have been started, systems, provides a very high degree of including those approved under the 1960 act competition and a very high degree of sound
our country have pioneered, and which and those approved by the Comptroller or the ness and security.
points the way to the future of all manappropriate State bank supervisor in the This country has the only truly competi
kind. 1930's, 1940's, and 1950's, I felt that the need tive banking system in the world. Other I hope that my colleagues will find the for certainty and confidence in the banking free nations either rely on government banks time to read my remarks because I honsystem outweighed any possible interest the or on a very small number of huge private estly believe that there is no more urgent Attorney General might have in attacking banks.
problem confronting us. a merger consummated 5 or 10 or 20 years Furthermore, our banking system with ago.
There being no objection, the statesome 14,000 independently owned banks is My second and more important reason was
far more competitive than most American ment was ordered to be printed in the that I do not think it is good for the Govern
industries. Aluminum, steel, automobiles, RECORD, as follows: ment, for business, industry, and commerce insurance, newspapers and virtually all other
VIETNAM AND LATIN AMERICA: THE DANGER or for the public to attempt to break up or major industries have far higher degrees of
OF A HEMISPHERIC VIETNAM unscramble banks which have already
concentration. merged. I have already discussed this point,
In my judgment, this banking competi- (Remarks of Senator THOMAS J. Dodd before and I need not elaborate on it further here.
tion is good and is a principal reason for the the national convention of the American My amendment would exempt future vigor and strength of American competition Legion, Portland, Oreg., Aug. 25, 1965) mergers from the antitrust laws, including
generally. The bank merger bill would keep The invitation to address your national the Clayton Act and the Sherman Act, at
it that way by taking by far the strongest convention means very much to me, not the expiration of the 30-day waiting period.
action to stem bank mergers the Congress only because of the respect I have for your It would not, however, immunize banks has ever taken.
great organization but also because it has created by such mergers from future attacks
over the years encouraged citizen concern under the antitrust laws for later conduct
with our major problems of foreign policy which might violate the antitrust laws. If,
THE DANGER OF A HEMISPHERIC and has given its uncompromising support for instance, a bank resulting from
to those policies which advance our national exempted merger should engage in action
security and protect the peace. found to be a violation of the prohibitions
Mr. DODD. Mr. President, within the That this is so is not surprising. There of section 1 of the Sherman Act against il- last few days there has come to my at- are no more passionate advocates of peace legal restraints on trade or commerce, or tention that the Castro radio in its broad- than those who, like the members of the the prohibitions of section 2 of the Sherman casts to Haiti is now providing its Haitian American Legion, know the meaning of war. Act against monopolization, or some other audience with regular readings from Che On the other hand, the members of the action which might be a violation of an Guevara's book on guerrilla strategy.
American Legion know well that peace canapplicable provision of the Clayton Act, my
not be purchased or protected by appease
Within the last few days, too, I have ment and that aggression cannot be wished tion against action by the Department of learned of another broadcast from Cuba away by burying one's head in the sand. Justice, or by private parties through a triple from the renegade American Negro, Rob- You know, because you have experienced damage suit, arising out of activities of this ert F. Williams, urging Negro extremists these things in your own lives, that the sort subsequent to the merger.
in this country to "learn to shoot and surest way to destroy peace is to close one's Senator JAVITS and I discussed this point handle explosives."
eyes to reality and to retreat before aggreson the Senate floor during the debate on
sors. You know that peace can only be pro
When the impending showdown comes, use S. 1698, and made it clear that the Senate
tected through strength, and that freedom the match and the torch unsparingly. The understood and agreed with the position I
can only be protected if we are willing to flame of retribution must not be limited to pledge to its defense “our lives, our fortunes, have expressed above. I am in favor of strong and effective com
urban buildings and centers, but the coun- and our sacred honor."
tryside must go up in smoke also. Remember petition in banking. I believe this is good
This to me is what the American Legion the forests, the fields, and the crops. Refor the banks and their officers, employees
stands for. And this is why I consider it a and stockholders. I believe competition in member the pipelines and oil storage tanks.
very special privilege to be able to address banking is also good for those who wish to At the conclusion of my remarks I ask
your convention today. deposit money in banks, or to borrow money
I want to take advantage of this opportuthat more extensive quotations from Mr. nity to discuss with you the increasingly from banks, or to make banks their trustees, Williams' Broadcast of August 21, to critical situation in Latin America. and for those who wish to carry on business and make their financial transactions American Negroes be inserted.
We have, I fear, been so engrossed with through the 130-odd billion dollars worth The PRESIDING OFFICER. Without the war in Vietnam that most of us have of demand deposits. Incidentally, I believe objection, it is so ordered.
failed to note the storm clouds forming on competition in banking is good for the Gov- (See exhibit 1.)
our Latin American horizon. ernment, which must sell vast quantities of Mr. DODD. Mr. President, it is against
Even the Dominican uprising we were disGovernment obligations in the money mar- this background that I ask unanimous posed to put down as a passing storm. ket. These same considerations convince
And as soon as its fury had spent itself me that sound banking is just as important of a speech on the “Danger of a Hemiconsent to insert into the RECORD the text
we again turned our eyes away from Latin as competitive banking. My support for
America back to Vietnam, where almost competition in banking does not make me spheric Vietnam,” which I delivered last 100,000 American boys are now committed to wish for the return of the good old days of Thursday before the national commit- a life-and-death struggle with the aggressive “free banking” when one could start a bank tee of the American Legion in Portland, forces of Asian communism. and issue bank notes freely without any Oreg.
Vietnam is not a diversion to distract our Government review or supervision. More
attention from Latin America.
In this speech I pointed out that the recent experience with unregulated savings Castro Communists are now openly talk- sion intended to distract our attention from
Nor was the Dominican uprising a diverand loan associations in Maryland should disabuse us as to the supposed merits of full ing of the prospect of a hemispheric Vietnam. and free competition in the financial world. Vietnam, that guerrilla forces are now
Latin America and southeast Asia are two The history of our Nation shows our un- operating in a dozen or more Latin coun- major fronts in the battle between the forces ending concern with sound banking and tries, and that there is a constant influx of freedom and the forces of international competitive banking. The First and Second
of new guerrilla trainees from about 30 communism.. Banks of the United States tended, it was guerrilla training centers now operated
And each of these fronts is of such great thought, toward monopoly and undue con- by the Castro Communists in Cuba and importance that the war can probably be centration. The era of free banking in the in Latin America.
won or lost in either area. 1830's and 1840's went the other way. The
More than any other war in which we national bank system, the Federal Reserve
I said that it was frightening to con
have been engaged in the past, the war in System, the Federal Deposit Insurance sys- template what would happen if we were Vietnam has driven home to the American tem showed the United States groping to- ever
ever confronted with a Hemispheric people the terrible difficulty of coping with