Anything which can be reasonably further done to enable these private organizations to do a still better job overseas is, in my judgment, within the national interest. Certainly the sound donation of property which cannot any longer be used with profit by a Federal Government agency is in the national interest. I am thinking now, for example, of America's great religious organizations. With dedication, zeal, and sacrifice, they have given of themselves selflessly in serving education and health needs overseas. Their work is truly God's work. Let me say that leaders of America's churches have cooperated very closely with our Senate health study. They have, for example, graciously compiled documentation as to the enormous extent to which our churches have served the cause of health overseas. Let it be noted that this legislation establishes careful safeguards, so as to make sure that the interests of America's taxpayer are not in the least bit slighted. No donations will be made carelessly under this legislation. On the contrary, they will be made under systematic procedures which, we hope, will serve the interests of America's taxpayers and our deep-felt humanitarian interests as well. The second bill I wish to discuss is S. 3154, which Senator Engle and I have introduced and which is now before you. Senator Engle and I joined in sponsoring S. 3154 because it had become clear to us that small businessmen and consumers were being unfairly discriminated against by the Department of Commerce under section 402 of the Federal Property and Administrative Services Act of 1949. I know something about section 402. I was a member of the Senate Committee on Government Operations when section 402 was enacted as part of the 1949 act. I know, and every other member of the committee at that time knows, that section 402 was written into the Federal Property and Administrative Services Act for one specific purpose. It was to continue in effect certain provisions of law which were designed immediately after World War II to assure that the American economy would not be flooded with vast quantities of military surplus items then being stored in our foreign bases. We did not intend this provision to prohibit or interfere with the orderly and reasonable importation into the United States of surplus property which was clearly needed by the American citizens and American businessmen. We intended it only as a source of standby authority to guard against the possibility of serious injury if both the economy and the importation of foreign excess property got out of hand at the same time. I was disappointed, Mr. Chairman, to learn of the manner in which the Business and Defense Service Administration of the Department of Commerce has recently interpreted and applied section 402. The present law contemplates that foreign excess property may be imported when the Secretary of Commerce determines that the importation will relieve domestic shortages or otherwise be beneficial to the national economy. As I understand what has happened, the BDSA, acting for the Secretary, without any change in the law, began to interpret the word "shortages" and the word "beneficial" in so restrictive a manner as to almost completely exclude the importation of this surplus material. I was surprised also to learn that the BDSA, in administering the law, has given no consideration to the longstanding and often-expressed desire of the Congress that the Government maximize its return on the disposition of surplus property. It seems obvious to me, Mr. Chairman, that getting more money for the U.S. Treasury on sales of surplus is in itself something completely beneficial to the economy. All of these factors have convinced me, Mr. Chairman, that legislation such as S. 3154 must be enacted. It seems clear to me also, in view of the apparent ease with which the Department of Commerce has missed the intent of Congress and changed the entire meaning of the law by its regulations, that any amendment of the law should be sufficiently specific and direct in its language so as to leave no latitude for further misinterpretation by the BDSA. The bill now before you, Mr. Chairman, will correct the existing inequities and provide clear guidelines for administration of the law by the Department of Commerce. The Secretary of Commerce would have full authority to prohibit the importation of any item if he determines the importation would be injurious to the domestic economy. At the same time, the small businessmen interested in imported foreign excess property, could bring the property into the United States with a minimum of redtape, delay, and expense, except for those particular items of surplus with respect to which the finding of injury has been made. I very much appreciate the opportunity to appear before your subcommittee, Mr. Chairman. I respectfully urge that these two measures which I have discussed today be favorably considered this session. Senator GRUENING. I wish to insert in the record also, with respect to S. 3288, a letter dated May 26, 1960, addressed to me by the distinguished senior Senator from Washington, Mr. Magnuson, urging favorable consideration of this bill, a letter dated May 27, 1960, to Senator Magnuson from Milo Moore, Director, Department of Fisheries, State of Washington, and a telegram dated May 26, 1960, from Mr. Moore, both urging favorable consideration of S. 3288. We will keep the record open for a week, so that those data which have been requested may be submitted, and for any other statements. The hearing is adjourned, subject to the call of the Chair. (Whereupon, at 4:33 p.m., the special subcommittee adjourned, subject to the call of the Chair.) APPENDIX U.S. SENATE, COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, Hon. ERNEST GRUENING, Chairman, Subcommittee on Donable Property, May 26, 1960. DEAR SENATOR: S. 3288, a bill to amend the Federal Property and Administrative Services Act of 1949, to permit the disposal of certain surplus property to State fishery agencies, is of great importance to my State, Washington. I introduced this proposal at the request of the director of the Washington State Department of Fisheries. They are in need of vessels, equipment, materials, or other supplies which could be used for exploratory fishing, the enforcement of State conservation laws in coastal waters, or in the propagation and rearing of migratory fish. The enactment of S. 3288 will be of great assistance to the department in securing this surplus property and equipment. It is my hope that the subcommittee will give favorable consideration to S. 3288. Sincerely yours, WARREN G. MAGNUSON. STATE OF WASHINGTON, COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, Washington, D.C. DEAR SENATOR MAGNUSON: Regarding our problem of obtaining a higher priority for surplus supplies and materials that can be used in facilities for the production of high protein, uncontaminated food in the event of a national emergency, we feel our activities in this field place us in an equal position with schools, institutions of higher learning, and the Bureau of Commercial Fisheries as being important to the civil defense program. We need steel building materials, trucks, pipe and fittings, but find schools are allocated these items because of higher priority. The Bureau of Commercial Fisheries has a high priority for allocations through the General Services Administration, but this department must take the leavings after the more desirable low-cost items have been allocated to higher priority using agencies. Surplus materials help us to produce salmon at a much lower cost, and it is only through our efforts that the stocks of anadromous and marine fishes are being maintained in this State. The Bureau of Commercial Fisheries has very little to do with the actual perservation, utilization, and production of marine fisheries resources in any of the States, and we believe our civil defense potential is far greater than the Bureau of Commercial Fisheries on the Pacific coast. We feel the State fisheries agencies have control over the only sources of high protein, uncontaminated food in event of nuclear attack and that we contribute to these marine fisheries resources through our hatcheries, fish farms, and management techniques which provide for optimum production without impairment of supply. Federally financed irrigation, reclamation, and power projects have deleted and reduced fishery values. Indian tribes under Federal jurisdiction have depleted salmon-producing streams which contribute to this reservoir of available marine fishery resources. 151 In order to assist in bringing this pool of protein food to fullest possible levels of availability, the Federal Government should make low-cost surplus materials available to us on a high priority. It is our belief that only State fisheries agencies such as ours can make this high protein, uncontaminated food available in event of national emergency. Certainly our efforts and contributions will be equal to the health, welfare, training, and stockpiling efforts of schools, institutions of higher learning, and the Bureau of Commercial Fisheries. Sincerely, MILO MOORE, Director. STATE DEPARTMENT OF FISHERIES, SENATE INTERSTATE AND FOREIGN COMMERCE COMMITTEE, Senate Office Building Washington, D.C. (Attention: Mr. Harry Huse). The Washington State Department of Fisheries heartily requests your support of the Senate bill 3288 (surplus property for State agencies) at the June 1, 1960, hearings. We urge Senator Magnuson to assist in its passage. MILO MOORE, Director, State Department of Fisheries. AMERICAN ORT FEDERATION, New York, N.Y., June 7, 1960. Hon. JOHN L. MCCLELLAN, Chairman, Senate Committee on Government Operations, (Attention: Mr. G. K. Shriver). DEAR SENATOR MCCLELLAN: We are grateful that you have kept the record open on the proposed bills on surplus property overseas to afford an opportunity to the American ORT Federation to present its statement. The American ORT Federation is a Jewish voluntary agency organized for the purpose of establishing, supporting and maintaining programs of vocational training throughout the world. ORT stands for organization for rehabilitation through training. The aim of our agency is to provide education in modern industrial skills and trades to people who would not, because of their circumstances, otherwise have access to such training facilities. This purpose is implemented through a network of vocational high schools for youth, adult courses, training activities for refugees, much of it in conjunction with the U.S. refugee and migration section and similar programs. At present, such activities are carried on in 19 countries, chiefly in North Africa, the Middle East and Europe. Financial support to these training activities depends primarily on voluntary philanthropic contributions. We are affiliated with the American Council of Voluntary Agencies for Foreign Service, Inc., and registered with the Advisory Committee on Voluntary Foreign Aid. We strongly favor the constructive utilization of Government excess property as outlined in S. 2725 and S. 2732. We regard the proposed legislation to be a valuable extension of the U.S. excess property disposal program. We believe that making such overseas excess property available to American voluntary agencies with overseas programs could be undeniably helpful in the operation of such programs. In addition to this excess property in overseas countries, we are aware that there exists in the United States stockpiles of excess property, including tools and machinery of a type that would be useful in vocational training schools. We respectfully request that consideration be given to finding some way to make such supplies available to voluntary agencies for use in their overseas activities. Such action would provide welcome assistance to the work of these agencies and redound to the greater welfare of the individuals and the communities they serve. Sincerely yours, PAUL BERNICK, Executive Director. DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE Personal property received by State surplus property agencies for distribution to DEAR SIR: This letter is submitted on behalf of the Electronic Industries |