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Publications; Correspondence and Drafts
Item
- Title
- Description
- Date
- extracted text
-
Publications; Correspondence and Drafts
-
box: 570
folder: 9
-
1963
-
g Capacity
One-F ifth of Manufactur:
Has Been Idle
The growing gap between our ability to preduce and our ability to consume is shown
by the fact that for the period December 1954 te September 1962, the operating rate
in manufacturing averaged only 83 percent.
During this period, in every year except 1955,
manufacturing capacity was unused,
ion Capacity
Productn
and tio
Produc
f Year
1954
1955
1956
1957
1958
1959
1960
1961
O
1962 (September)
SOURCE:
4015863
oeiué4Zafl-cio
84h
92/
86
78
80
85
77
83
83
i Ma:
more than 10 percent of
facturing,
1954-1962
» Capacit
,
;
/
-
j
i
@
20
15
23
17
17
McGraw-Hill Department of Economics
1961/1964
McGraw-Hill Department of Economics 1963/1964
Western
—_————
Countries
Use Govern est
At the request of Senator Douglas,
the Budget Bureau submitted to the
Joint Economic Committee the budget of three European countries-These are three free
Great Britain, France and Western Germany.
enterprise countries which in recent years have been able to achieve and
maintain full production and full employment with unemployment only a
fraction of that in the United States.
These budgets had to be adjusted in order to make them comparable with
the United States. On a recalculated basis, Britain ran deficits in nine of the
last eleven years. France had deficits in every one of the last ten years, and
s.
year
six
past
the
of
four
in
its
defic
Western Germany had
By contrast the U.S, had deficits in six of the past eleven years,
while their economies were booming
4-15-63
ours was stagnating.
and
In a recent report of the European Economic
on planning appears:
"it
must be remembered
Commission,
that an economic
order
the following statement
based on freedom
e
at
St
nt
ta
ns
co
of
e
ic
pr
the
at
y
da
to
of
d
rl
wo
the
in
can only exist
intervention in economic
life."
While presently using many general
annual economic forecasts for each
surveys. Such data will be used to
policies into a community economic
related economic issues.
SOURCE:
4 15-63
oeiu4Zafl-cio
economic studies the Commission is planning
member country along with more detailed
further the ultimate aim of merging national
policy on output, investment, labor, and
Bulletin from the European Community
December 1962
The National Budget -~ The government each year submits to Parliament
along with the fiscal budget, a national economic budget.
The national economic budget, a budget for the economy as a whole, is
prepared by the National Research Institute in collaboration with officials
from the Government Budget Bureau and the Labor Market Board.
This
draft is submitted to various groups of top government officials for criticism
and final approval,
Content and Use of the National Budget
-- Similar
te the
Dutch plan,
the
Swedish national budget relates the nation's total resources to the total
utilization of these resources without much attention to eneaeiey setees.
The budget incorporates the broad economic —
of maximu
,
favorable balance of payments and full em
The national economic budget does not detail needed government policies.
In drawing up the national budget, however, certain assumptic
made regarding government fiscal, monetary and related policy. These
assumptions are not formalized nor are they binding on the govers ament,
Nevertheless,
purpose.
4215 =63
oeiuéZafi-cio
such assumptions do influence official
thinking a
en
“aioe
coumienen
ecenemie
for Economic Programming
groups.
Genus arm
og water
oF the minister
~ Meade
wet
with the enperte
of the Commission but do not have direct representation in the Commission,
A broad five year economic plan is to be drafted with the goals of maintaining
a high rate of economic growth, achieving greater economic and social
equality, and identifying government action necessary to meet public needs.
Economic plans drafted by the Commission will be reviewed by several
agencies, including the National Council of the Economy and Labor, an
advisory body, with final approval to be granted by Parliament.
The first plan is expected to be ready for ParMamentary action early this year,
SOURCE:
4015-63
oeiu4Zafl~cio
24 ORE, August 7 and 8, 1962
a. drafting
bro:
onc mole ‘peegrame fen the « economy as a whale
with a meget cone é couneants satis of 4 percent a year for the five years
1962 through 1966. Twenty top representatives of government, (heads of
commerce, labor and treasury agencies),
serve on the Council,
The staff has
consumer and
umption of
estimates for
drawn up projections for 1966
government expenditures and
a 4 percent economic growth
16 major industry groups are
of those industries,
industry, labor and other groups
|
of employment, investment,
other economic sectors under the
rate. The implications of these
to be discussed with representatives
The Council will appraise the issues involved in achieving the 4 percent growth
rate, and review methods suggested for achieving an even faster growth rate.
it is expected that the Council's work will have a profound affect on broad
economic policy making in Britain.
SOURCE:
4-15-63
oeiuéZafl~cio
Economist, 5/12/62
eard
of Trade Journal,
10/62
experts.
visory
model.
is seviewsd ve the Contval
The deeh
bod
me
|
Pla
d
nn
am
cn
se
d
s
an
rt
pe
ex
ic
om
on
ec
g
of
nn
te
cone
sepauaeuntiees
4 fers from a staple forecast stace the model
The : plan dif
mak
achieve these aiehen
8
imax “imum
: tripar
in
of
ate
growth, stable price level and full euplayment),
conomic policies needed to
:
tio
detailed in the plan.
These onedad soennude catheles are
y
m
o
n
o
c
e
l
a
t
o
t
e
th
h
t
i
w
y
l
n
o
s
l
a
e
d
n
a
l
p
h
e
t
a
d
e
th
,
n
a
l
p
h
c
n
e
r
F
e
th
to
t
s
a
r
in cont
s
e
k
e
b
l
or
m
a
o
u
h
d
n
i
s
v
i
d
t
n
r
n
i
e
e
l
fo
a
m
o
t
g
s
n
e
o
v
i
n
d
t
i
n
c
a
u
d
o
r
x
p
t
fi
o
s
n
e
It do
economic sectors.
The plan is used primarily by the governmen
policy decisions.
SOURCE:
4-15-63
oeiuédZafil-~cio
Scope and
d
e
l
i
a
t
e
d
e
r
o
m
r
o
f
e
n
i
l
as a guid. e
In an article on the European economy,
Newsweek magazine mac
comments on the French plan which it called “spectacular. "
",..the plan (is) France's system of long-range economic projections
which have helped sweep it to the forefront of the European business
community.
"At the recent White House economic conference, the President expressed
open admiration for the plan's goal of an annual 5.5 per cent French rate
of growth through 1965.
“The plen is actually a series of plans that began in 1946, have since
covered periods of from three to six years.
“Put most simply, the plan sets a succession of national goals, then
allocates the resources necessary to attain them.
"The results to date can only be described as cntracntinary.
They are
visible to the naked eye in the crowded stores, in the traffic~-jaram
in new plants, in the general veneer of prosperity. More importa
show up in the statistics as well."
SOURCE:
4/15/63
oeiu4Zafl~-cio
Newsweek,
6/25/62
|
he
General
:
experts of the
Commissariat of the Plan. : Sennee aim is to csannaiie three key
maximum growth, full employment and favorable balance of payments.
detailed plans for smaller economic sectors and for
up
w
individual industries. (e.g. Agriculture, Public Works, Steel, Chemical)
mittee members, appointed by the government, are experts from
tadnstey labor and various government agencies. Decisions of the
ommittees are arrived at through consensus, not by majority vote.
shane: whtdhe
are finally
senna ve
The implementation of the plan is facilitated by the fact that the private
groups who are supposed to implement it have participated in the development of the plan. Representatives of the General Commissariat exercise
direct control over the public sector portion of the plan. As for the private
sector, the government has various tools at ite disposal to induce compliance
{tax reductions, priority access to credit and government loans at low interest
rates.)
,
Em
ch
en
Fr
1,
/6
12
,
ng
ni
an
Pl
ic
om
on
SOURCE: French Ec
4-15-63
eeiudZafil-cio
bassy,
N.Y.
conemy expanded at an annual rate of 5 percent per year since 1953
instead of supwenteantely at one-half the 5 percent rate, we would have
$620 billion more in goods and services.
Had we distributed these $620 billion equally to each man,
woman
had about
and child, each
person would have received $3,350, or each four-person family a total of $13,400.
Alternatively, we could have used approximately $500 billion to:
Double OASI benefits during the 1954-1962 period and give such benefits
in each year to the same proportion of the elderly people as receives
such benefits currently.
Build 9 million additional homes at $15,000.
Build 1,000 hospitals, each equipped with 900 beds.
Double expenditures on highway construction in each of the 9 years.
Build 600,000 additional classrooms and raise teacher salaries by
$1,500 in each of the 9 years.
Give 3 million students fellowships at $2,000 in each of the 9 years.
Increase foreign aid expenditures each year by $10 billion.
And still have enough remaining to raise significantly the livi g standards of
millions of families and individuals who still live in poverty.
415-63
oeiuéZafl-cio
We Lost
than $300 Billion in Output
Had our economy expanded at a rate of 5 percent per year since 1953, GNP in
1962 would have
$554 billion.
armmounted to $667 billion instead of the actual figure of
For just the last 3 years we lost $310 billion in goods and services, an amount
equal to 55 percent of our tetal 1962 output.
Had we distributed these $310 billion in such a manner that each man, woman
and child received an equal share, each person would have received $1,675, or
a family of four would have received $6,700.
Alternatively, each person could have received $1,000, and we could have used
the remaining $125 billion as follows:
uild hospitals with 900,000 beds, thereby wiping out the hospital shortage
Build 300,000 classrooms, thereby meeting the minimum classroom
requirements
Build one and one-third million additional homes each of the 3 years
Double highway expenditures in each of the 3 years
Increase foreign aid by $5 billion each of the 3 years
4~15~+63
oeiudZafil-cio
i
d
n
e
p
x
E
an
th
e
r
o
M
st
Co
24 Days of World War Il
r
a
e
Y
e
n
O
r
fo
d
Ai
n
g
i
e
r
o
F
n
o
Paul Hoffman, former administrator of ECA, estimated that the final cost
WwW orld War Ii
of World War Il to the American people “int be» $4. 3 ogee
billion.
§
ae
lasted 44 months. The average cost pe
In the current fiscal year, federal expenditures for economic and financial
assistance (excluding military assistance) will be $2.3 billion, or the
equivalent of the cost of World War Il for about 2} days.
4-15-63
eeiu4 Zafl~-cio
in 1961, for the U.S., 9.6 percent of GNP was devoted to
defense spending.
For all Western European
Gy
figure was 4.3 percent (based on 1960 data).
national
countries, a comp
There are no reliable figures available for Soviet GNP. Soviet GNP
has been estimated at half of that of the United States, with railitary
effort estimated "between $42 ~ $59 billion". This would mean that the
Russians are devoting at least 20 percent of their total output for
military purposes.
SOURCE: OEEC
1
/6
23
1/
s,
et
ck
Ro
d
an
es
Missil
4~+15-63
oeiu4Zafl-cio
Investment
.
S
.
U
to
l
a
t
i
p
a
C
n
g
i
e
r
o
F
of
s
n
o
i
t
u
b
i
r
t
n
o
C
eT
ee
n
g
i
e
r
o
f
of
s
e
t
a
m
i
t
s
e
d
n
a
s
e
t
a
t
S
d
e
t
i
n
U
e
th
in
t
n
e
m
t
s
e
v
n
i
d
e
x
i
f
l
ta
to
of
Estimates
,
s
r
a
e
y
c
i
f
i
c
e
p
s
w
e
f
a
y
l
n
o
r
fo
e
l
b
a
l
i
a
v
a
e
r
a
0
0
9
1
to
r
o
i
r
p
.
S
.
U
e
th
in
t
n
e
m
t
s
e
inv
e
r
a
w
o
l
e
b
s
o
i
t
a
r
e
th
,
t
l
u
s
e
r
a
s
A
,
r
o
r
r
e
of
n
i
g
r
a
m
e
g
r
a
l
a
to
t
c
e
j
b
u
s
e
r
a
and
e
th
to
d
e
t
u
b
i
r
t
n
o
c
l
a
t
i
p
a
c
n
g
i
e
r
o
f
h
c
i
h
w
to
t
n
e
t
x
e
e
th
only a rough indication of
development of this country.
(a)
(b)
in
t
n
e
m
t
s
e
v
n
i
e
t
a
r
o
p
r
o
c
n
o
n
d
an
e
t
a
r
o
p
r
o
c
S.
U.
l
ta
In 1900 to
n.
io
ll
bi
6
.
3
2
$
to
d
e
t
n
u
o
m
a
t
n
e
m
p
i
u
q
e
d
an
t
an
pl
l
a
r
u
t
l
u
c
i
r
g
non-a
ve
ha
to
d
e
t
a
m
i
t
s
e
is
e
m
i
t
at
th
at
t
n
e
m
t
s
e
v
n
i
m
r
e
t
g
n
o
l
Foreign
l
ta
pi
ca
n
g
i
e
r
o
f
of
n
io
ll
bi
.1
$3
e
Th
n.
io
ll
bi
.1
$3
to
amounted
nno
in
t
n
e
m
t
s
e
v
n
i
S.
U.
l
ta
to
of
t
n
e
c
r
e
p
13
r
fo
d
e
t
n
u
o
c
c
a
,
t
n
e
m
p
i
u
q
e
d
an
t
an
pl
l
a
r
u
t
l
u
c
i
r
g
a
the
In 1880
U.S.
figure
in non-
n.
io
ll
bi
8
.
$8
to
d
e
t
n
u
o
m
a
t
n
e
m
p
i
u
agricultural plant and eq
Foreign
between
U.S.
(c)
comparable
investment
long-term
$1.6
investment
- $1.8 billion,
non-agricultural
Prior to 1880,
in 1880
is estimated
or approximately
plant and
equipment
20 percent of total
investment,
S.
U.
l
ta
to
r
fo
ta
da
no
e
ar
there
investment for the period
This is unfortunate
1880.
e
th
s
wa
od
ri
pe
r
a
W
l
vi
Ci
U.S. capital was highest.
at somewhere
fixed capital
d
an
r
a
W
l
vi
Ci
e
th
of
d
en
between the
st
po
y
rl
ea
e
th
od
ho
li
ke
li
l
al
for in
l
ta
to
to
l
ta
pi
ca
n
ig
re
fo
of
time when the ratio
t
ne
at
th
ct
fa
e
th
by
d
e
t
s
e
g
This is sug
n
e
e
w
t
e
b
d
le
ub
do
t
n
e
m
t
s
e
v
n
i
foreign capital
1866 and
1872.
e
th
in
y
dl
pi
ra
at
th
d
e
s
a
e
r
c
n
i
l
ta
pi
ca
c
i
t
s
e
m
o
d
at
th
ly
ke
It is unli
n
ig
re
fo
m
r
e
t
ng
lo
s
os
gr
n
e
h
w
69
18
in
,
e
r
o
f
e
r
e
h
T
.
od
ri
same pe
is
th
at
th
e
bl
si
au
pl
is
it
n
io
ll
bi
.4
$1
to
d
e
t
n
u
o
m
a
t
n
e
m
t
s
e
inv
l
ta
to
of
t
en
rc
pe
25
t
as
le
at
d
e
t
n
e
s
e
r
p
e
r
t
n
e
m
t
s
e
v
n
i
foreign
U.S. fixed investment.
SOURCE:
U.S.
oeiu42afl-cio/rg
4-17-63
Commerce
Department
"Historical
Statistics
of the
United
States."
ee a
ee ee
ae a
Se ee
ee
BLS says “baber ferce time lost
omic reasons, angus
through
unemployment @
or
1
7.
th
wi
ed
opar
ronm
|
h,
rc
Ma
in
t
en
rc
pe
civilian labor force” wae 6.6
,
62
19
es
th
en
ab
na
en
it
cu
y,
t
ar
n
nu
Ja
e
in
c
r
February, 6.8 pe
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4-17-63
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WLGirg
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4-17-63
ee
nt a
eee
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4~16~63
WLGirg
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4-16-63
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4-16-63
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4~17-63
ee
ee eee ee
ee
e
ee
ee eS
ee
e eee
Se
ee en ae ee ae
ee
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a
ae
OEE
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ee
ee ee
ee
el
ee
ee ee
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ee
Draft - April 17,
ee
ee ee ee ee a
1963
WANTED: A STRATEGY FOR
The nations have had their latest wa
my
~~ this time from Pope
John XXII -- of the unprecedented danger to human life on this planet inherent
in the great-power policy of seeking to keep the peace thr
to kingdom
inhabitants of all the major cities ef the world
come many
eea
ee
ee
ee eea
eT
April
17,
1963,
of a resurgent German power.
f:
h
c
u
s
t
a
h
t
,
e
s
r
u
o
c
f
o
,
y
a
s
o
t
e
l
b
i
s
s
o
p
It is
is just the point.
Irrational fears may be more dangerous
|
ee
ee ee ee ae OR TE ee eee
Se
Se ee
|
EEE
EE
EE EEE EE EE EE
oe
EE
EE
ee
ee
ee
eee ee
Se
—eee
Ue
ee a ee, ee
ee
—
ee
eS
ee
ee
ee eh
ee ee
ee
ee
ee:
ee
ee
ee
rr — one
a
eee
ee
a
in whieh Mr. Khrushehev
onal
cartes
oa
17, "1963
a
17, 1963
ry
ng
hu
e
th
n
e
e
w
t
e
b
p
a
g
decisive step te bridge that
3
6
9
1
,
7
1
l
i
r
Ap
fi
s
t
i
t
a
h
t
t
u
o
t
n
i
o
p
o
t
h
g
u
o
n
e
It is
essential weal
SOP
EF
S
E
R
ETE
+2.
io
April 17, 1963 E
SS
SANE
BE Lip
eS
ee
ee ee ee
ee
ee
a
ee ee
ee
ee ee Te
Ome
“~~
a
~~
e
e e
Te
ee
—
ae
Te ee eS ee
eeeS
ea ae
eee
oe
ageth| 7, 1963"
face.
We bold in our |
Inter-Office Communication
April
To
Irv
Bluestone
From
W.
L.
Subject
Material
Ginsburg
on Foreign Aid
Here are additional items
which you requested.
ts
18, 1963
rates
Growth
in the
relating
United
to the foreign
States
and
other
aid material
industrialized
countries.
2.
Some
figures
on Sino-Soviet foreign aid.
The importance of foreign aid to the U.S. economy--some
excerpts from President Kennedy's message on foreign aid.
4.
President Kennedy's call for the other industrialized nations
in the world to work with the United States through international
organizations in providing assistance to underdeveloped
countries.
5.
The significant role played by foreign investment
the U.S. economy in the 19th century taken from
Barbara
Ward's
book
The
Rich
6.
Examples
of the rift between
Ti
Size of U.
S.
W LG:eh
oeiu42
attachments
- 8
and Western
Nations
and
the
China and USSR.
Europe
foreign
aid.
in spurring
Poor
Nations.
Economic
Growth
Rates
in the
United States,
the European
Countries
and Japan
The lag in the rate of economic growth in the United States behind the economic
growth rates for other countries can be shown in a variety of ways.
For
was
the United States
2.9 percent.
itself,
the rate
of economic
growth for the
1951-60
period
For the United States beginning with the higher base of 1953 for the period
1953-62 the rate of economic growth was 2.7 percent.
Comparing the rate of economic growth in the United States with other countries
shows how much our rate of economic growth is lagging.
Data making such
comparisons appeared in a recent report of a presidential committee reviewing
governmental statistics on employment and unemployment.
A table taken
from that report follows:
Canada
France
Germany
(F.R.)
Great Britain
Italy
Japan
Sweden
SOURCE:
OnalWHIN
OO
States
“InN
United
a
Average Annual Increase
Real Gross National Product
(percent)
Country
WouNnN&
nA
WwW NH
i,
"Measuring Employment and Unemployment"!
President's Committee to Appraise Employment
Unemployment Statistics
(Gordon Report)
and
Sino-Soviet
New
Sino-Soviet
assistance
1960-61
and
U.S,
commitments
level of $900
increase
of the decline
(primarily Soviet)
of economic
million,
in aid to Cuba
in funds
estimated
By contrast,
government
economic
at $7.1
outside the Communist
and military
aid commitments
in the two years
1961 and
1962 (fiscal years),
Agency for International Development filed
In Support of the President's Foreign Aid
Request
New
Bloc.
since
billion.
assistance totaled $9.0 billion.
SOURCE:
4-18-63
oeiu42Zafl-cio
in 1962 accounted for a large part
granted to countries
Total Sino-Soviet
are
Countries
in 1962 to nations outside the bloc fell by half from the
The
1955
Aid to Underdeveloped
to Congress.
York
Times,
4/4/63
U.S.
How
Foreign
Aid
Also
Helps
President Kennedy in his message
following significant points:
the
U.S.
to Congress
Economy
on foreign
aid made
the
Europe
1.
Foreign aid in past years have helped the economies of Western
and Japan, with the result that commercial exports from the
United States to those countries have increased sharply.
2.
Assisting other countries develop their economies
greater trade opportunities for the United States.
3.
,
tes
Sta
ted
Uni
the
in
nt
spe
are
s
nt
me
it
mm
co
our
of
t"
cen
per
80
“Over
thereby strengthening our own domestic economy.
4.
of
ity
abil
the
by
ed
rov
imp
n
bee
has
tion
posi
ts
men
pay
of
e
anc
bal
Our
European countries to repay loans made to them in the past.
Pertinent
quotes
from
the President's
message
on these
would
lead to future
points
follow:
to
s
ort
exp
l
cia
mer
com
of
ion
ans
exp
the
by
ped
hel
ng
bei
"Our economy is also
ic
nom
eco
.
U.S
by
d
rre
spu
e
wer
y
rit
spe
pro
and
wth
gro
t
sen
pre
countries whose
to
s
ort
exp
our
,
ade
dec
t
las
the
r
Ove
rs.
yea
r
lie
assistance in ear
Western Europe and the United Kingdom have more than doubled, and our
exports to Japan have increased four-fold.
s
tie
uni
ort
opp
de
tra
of
ng
eni
wid
ure
fut
a
to
d
war
for
k
loo
"Similarly, we can
.
ing
ist
ass
tly
ren
cur
are
we
nt
pme
elo
dev
ic
nom
eco
se
who
ies
in those countr
the
in
nt
spe
be
l
wil
t
cen
per
hty
eig
r
ove
ts,
men
mit
com
t
ren
cur
our
"Of
t
men
loy
emp
and
y
nom
eco
our
of
wth
gro
the
to
ing
but
tri
con
,
United States
opportunities.
y
ntl
ica
nif
sig
ng
bei
is
ay
tod
on
iti
pos
ts
men
pay
of
e
anc
bal
our
'l might add that
the
er
und
ies
ntr
cou
an
ope
Eur
to
e
mad
ns
loa
of
helped by the repayment
Marshall
Plan
and by the Export-Import
SOURCE:
4-18-63
Bank."
President Kennedy's Foreign Aid Message to Congress
in Congressional Quarterly, Weekly Report - April 5,
(4/2/63)
1963
President
Kennedy
Through
Calls
International
for a Cooperative
Organizations
Effort by Industrialized Nations
to Provide
for
Foreign
Working
Assistance
President Kennedy urged close cooperation with other industrialized countries in
implementing programs of assistance to developing countries, in his foreign
The President called attention to the fact that other
aid message to Congress.
industrialized countries were now contributing about $2 billion a year to assist
developing countries. ~
He said close cooperation
effective use of such aid.
with
such
other
countries
was
necessary
for the most
He committed the United States to continue to work closely with other
through international lending and technical assistance agencies.
In the
words
of the
nations
President:
"The United States is no longer alone in aiding the developing countries,
The flow of
and its proportionate share of the burden is diminishing.
funds from other industrialized countries--now totaling on the order of
$2 billion a year--is expected to continue; and we expect to work more
closely with these other countries in order to make the most effective
In addition, the international lending and
use of our joint efforts.
technical assistance agencies~-to which we contribute heavily--have
expanded the schedule and scope of their operations; and we look
forward to supplementing those resources selectively in conjunction
We will continue
with increased contributions from other nations.
to work with our allies, urging them to increase their assistance efforts
and to extend assistance on terms less burdensome to the developing
countries. ”
SOURCE:
4-18-63
Congressional
Quarterly
- April 5,
1963
The
Role
of Foreign
Investment
in the
United
States
Barbara Ward, in her recent book The Rich Nations and the Poor Nations,
emphasizes the need for foreign investment to spur an economy's expansion.
This investment of capital enables an economy to greatly increase its
production and move from
technological community.
an underdeveloped
stage to an industrialized
During the 19th century it took British investment to help Western European
countries to develop and then in turn, British and Western European
investment which contributed so significantly to the growth of the U.S. economy.
Though the book does not have any specific statistics on the amount
investment, it points up the importance of such investment in these
"Especially
above
in empty
all in the United
lands
settled by Europeans
States,
there
occurred
overseas,
a mutual
flow
capital, a mutual interdependence of trade which meant that
all these lands helped to draw each other up the spiral of
Britain sparking growth in Europe;
expanding production:
British and European investment spurring expansion in the
As early as the 1870s, the North Atlantic
United States.
countries were providing over sixty per cent of the foreign
capital loaned in these areas and were together engrossing
(page 31)
something like seventy per cent of world trade."
4-18-63
and
of
of such
words:
Examples
of Rift Between
China
and Russia
The following excerpts from official Chinese and Russian publications
summarize the rift between Russia and China on Cuba and on the question
nuclear war.
We have also indicated the publications in the United States
in which these quotes appear:
On
Guba
China
|
USSR
China
"What
we
oppose
is the
sacrifice
of another
sovereignty in order to compromise
country's
with imperialism.
This is 100 percent appeasement, a Munich pure
simple."
(Red Flag)
Time
1-18-63
and
The Chinese criticism is "Leftist phrase-mongering
striving slanderously to present the case as if the
Soviet Union capitulated.
The authors of the term,
*second Munich’, are at odds with elementary history."
(Pravda)
Time
1-18-63
The
Chinese
Communist
official
Party
organ,
Red
Flag ,
described Soviet Communist party leadership as
"outwardly tough as bulls but inwardly as timid as mice."
Washington Post
On
of
3-2-63
War
China
"A war
would
inevitably
end in the destruction
and the victory of socialism. "' (Red Flag)
Time
1-18-63
USSR
"A nuclear war would complicate exceedingly the building of a
new society on the ruins left after a world conflict.
Communists
cannot act like these irresponsible scribblers in their cynical
gamble with human lives."
(Pravda)
Time
1-18-63
USSR
"The
United
States
has
40,000
This is more than enough.
million people would die."
Communist
China
USSR
4-18-63
of imperialism
Party Congress)
"The imperialists
(Red Flag)
are paper
"The western paper
(Pravda)
tigers
atomic
or nuclear
warheads.
During the first blow 700 to 800
(N.S. Kruschev to the East German
Time
1-25-63
tigers", Mao Tse Tung.
Washington Post 3-4-63
have nuclear teeth".
Washington Post 3-4-63
U.S.
Resources
Can Support $20 Billion a Year
in Foreign Aid
for
the
Nex
t
25
Ye
ar
s
sse-eerorulith
os tb
acapella
utcc
oie be
nc taena
ge
contso
ae eesn
ni
ibsnglc
t te
si ig nnR
te
R
-aes
oe
The
cumulative
rate
of 5 percent
$775
billion.
difference
a year
If we allocated
and
in the output
3 percent for
25 percent
of our
nation growing
the period
of this cumulative
1962-1972
difference
at the
amounts
to
to foreign
aid we could extend a total of $195 billion in assistance to underdeveloped
countries
or almost $20 billion a year for the ten-year period.
Beginning
for
the following
with the
1972
15 years,
GNP,
ata 5
the cumulative
percent
growth
output of our
rate
would
of our
GNP
economy
exceed
$20, 000 billion.
If as
we
could
a nation
continue
4-18-63
oeiu4Zafl-cio
allocated
assistance
of $20 billion a year,
SOURCE:
we
for the
Estimated
1-1/2
percent
to underdeveloped
1972-1987
by UAW
countries
period.
Research
Department
for foreign
at the average
aid
rate
Western Europe
Can Contribute $6 Billion - $10 Billion a Year
in Foreign Aid for
If Western
5 percent,
the Next’25
Europe's
output
continues
the cumulative
output
during
Years
to grow
the next
7
at an annual
10 years
rate
of
will amount
to approximately $4, 350 billion.
If out of this
total,
foreign aid,
Western
this
period.
10-year
At one
Europe
than twice
Beginning
economy
and one-third percent
could
contribute
and one-third percent
as high as the assumed
are more
one
rate
U.S.
Europe's
reflecting
as high as the living
with
1972,
for the following
the cumulative
15 years,
ata
were
allocated
$6 billion per
year
to
during
contribution rate will be half
living
the fact that U.S.
standards
of Western
output of Western
5 percent growth
standards
Europe.
Europe's
rate
would
exceed
$11, 000 billion.
If Western
one
and one-third
Europe
percent
during
the period
1972-1987
continued
to allocate
of its output to foreign aid it could raise
annual contribution from $6 billion per year to $10 billion per year.
SOURCE:
4. = 18=63
oeiu4Zafl-cio
Estimated
by UAW
Research
Department
its
Helping
the Underdeveloped
Economies
of the
Countries
also Strengthens
Countries
Developed
the
out
d
te
in
po
nt
Wa
t
ou
th
Wi
d
rl
Wo
ok
bo
his
in
Paul G. Hoffman
the
for
s
ie
tr
un
co
ed
op
el
ev
rd
de
un
the
to
significance of assistance
s:
rt
po
ex
er
gh
hi
in
s
ie
tr
un
co
d
pe
lo
ve
de
s
ie
tr
un
co
ed
op
el
ev
rd
de
un
d
re
nd
hu
e
on
'In the long view, the
s
me
co
in
ta
pi
ca
r.
pe
If
.
er
ti
on
are a great new economic fr
in the underdevelbped world were
to be lifed in the 1960s,
to
s
rt
po
ex
t,
en
rc
pe
5
2.
ly
on
by
,
ar
steadily year by ye
h
ic
wh
d,
rl
wo
ed
nc
va
ad
ly
al
ri
st
du
these countries from the in
s
ar
ye
n
te
e
th
r
fo
n
io
ll
bi
64
$1
totaled
reach $350
billion for
1960-1970.
1950-1960,
For
the United
should
States--assuming
ch
su
-ow
fl
e
ad
tr
l
na
io
at
rn
te
in
e
th
of
e
ar
sh
t
en
rr
cu
s
it
s
in
ta
re
it
al
on
ti
di
ad
d
te
ma
ti
es
an
,
70
19
by
an increase would mean,
$8.5 billion in exports
every year.
es
at
St
ed
it
Un
e
th
in
bs
jo
n
io
ll
mi
"An equivalent of more than 4.5
n
io
ll
mi
75
l.
an
th
re
mo
e,
es
th
Of
now depend on foreign trade.
ed
op
el
ev
rd
de
un
e
th
to
s
rt
po
ex
jobs depend on United States
se
ea
cr
in
ll
we
d
ul
co
er
mb
nu
is
th
By 1970
areas of the world.
.
bs
jo
e
im
-t
ll
fu
n
io
ll
mi
75
2.
an
to the equivalent of more th
is
it
y;
it
ar
ch
t
no
is
d
ai
n
ig
re
Fo
"That is good business.
e
r
o
m
e
th
as
e
ns
se
me
sa
e
th
in
sound business management
"
t.
en
pm
lo
ve
de
et
rk
ma
or
familiar forms of product
4-18-63
Paul
Hoffman
Urges
that Foreign
Aid
be
Channeled
through
the
United
Nations
In his book World Without Want Paul Hoffman urged that the United Nations be
used as the most effective instrument for handling assistance to underdeveloped
countries:
"The correct--indeed the only
of aid is to select the channel
results at the lowest possible
much more frequently than we
when we can afford to see the
development wasted in a futile
commercial advantage, or get
'Tt has
been
a major
mistake
sound--approach to the channeling
which will give the most effective
This means using the UN
cost.
The day has gone
have in the past.
slender resources available for
attempt to buy friends, obtain
national credit.
to overlook,
as
we
have,
the
unique
its
d
an
s
on
ti
Na
ed
it
Un
the
h
ug
ro
th
aid
advantages of channeling
t
es
ch
ri
the
d
te
la
mu
cu
ac
ve
ha
es
di
bo
e
os
Th
.
es
ci
en
specialized ag
at
th
ty
vi
ti
ac
t
en
pm
lo
ve
de
of
d
el
fi
y
er
ev
y
ll
ua
rt
vi
in
ce
experien
e
ol
wh
the
on
s
aw
dr
s
on
ti
Na
ed
it
Un
e
Th
.
re
he
can be found anyw
world for its technicians. "
SOURCE:
4-18-63
Paul
G.
pages
Hoffman,
122
and
World
124.
Without
Want
,
|
Inter-Office Communication
April 19, 1963
To
Walter
From
Irv pe
Subject
Aspen Institute for Humanistic
Following
Aspen trip:
1)
Studies
is the information you requested
concerning
the
Nature of the Meetings - The readings have already
been shipped to you and are enroute.
I understand
they will be essentially similar to the readings used
last year with certain changes.
Contrary to my understanding, the emphasis will not
necessarily be on international affairs, although there
are specific readings on this subject including a book by
George Kennan.
In any event, the books should be
arriving shortly.
Accommodations -- Bob Murray assures me that he will
have a house available on August 18th.
He is seeking
accommodations which will be the most suitable for you
and the family.
3)
Cultural Events During Your Visit -- On Wednesdays,
Saturdays and Sundays there will be a concert under the
tent,
There
Film"
will also be a special ''Conference
scheduled for August 29th.
The usual lecture series
Thursday as well.
will be held
on the American
on Tuesday
I gather that there will be activity in the opera
a brochure concerning this will be sent to us shortly.
IB:mp
oeiu
42
and
house
and
Intec-Office Communication
September
23,
1963
ne
To
Walter
From
Irving
Subject
Defense
nd
Spending,
etc.
It is a foregone
1964 campaign.
in the
conclusion that 'spending’will be an issue
In recent months there has been an increasing
number of articles and speeches calling for a re-evaluation of defense
expenditures by the Pentagon.
Senator McGovern's speech on the
Senate floor gained widespread coverage.
Melman's writings on
"overkill" have been widely read and used.
Moreover, recently Mark Watson, military correspondent
of the Baltimore Sun, predicted specific cuts, (vigorously denied for
the present by the Pentagon), as described on the sheet attached.
The drive to cut federal spending, if successful, will be
directed toward elimination of services to the people needed to relieve
unemployment (witness the loss in the House on the vote to extend ARA).
This attack can be diverted to discussion of a cut in defense spending.
A defensible reduction in the military budget would make it
easier to argue effectively for increased spending for non-military and
foreign aid purposes, and for domestic economic programs needed to
ease the unemployment problem.
If the President felt there was public support for it, he could
urge a reduction of $5 to $10 billion in the defense budget--based on a
re-evaluation of defense spending and our present posture of "overkill"
retaliatory power.
Therefore, it would be valuable to explore carefully the documentation currently available relating to the possibility of reducing
defense expenditures meaningfully without disadvantaging our defense
pasture; to explore as well the political attractiveness of such a program;
and to take
a program.
could
action,
if desirable,
A discussion
crystallize
with the
the need
and
to mobilize
President--or
significance
IB:mp
oeiu 42
Att.
Copy of Mark Watson's Predictions
res
itu
end
Exp
e
ens
Def
in
of Cuts
broad
citizen
support
possibly with Bobby
of this
issue.
for
such
Kennedy
--
MARK
WATSON
(BALTIMORE
SUN)
PREDICTIONS
__OF CUTS IN DEFENSE EXPENDITURES
¢ Shutting down half of the nation’s 14 reactors producing material
for nuclear warheads at a savings of $1 billion a year. We have weapon
material running out of our ears, and President Eisenhower would probably have stopped purchases of uranium were it not for the power of the
late Senator Robert S. Kerr, whose Kerr-McGee Co. was the prime seller
to
the
Government
and
who
was
close
to
then
AEC
chairman
Lewis
Strauss. Mr. Kennedy also was inhibited by Kerr’s stranglehold on the
Senate Finance Committee. As soon as Kerr died, there were reports that
the uranium and weapons’ material program would be shut down. As part
of the program, according to Watson, atomic fuel in obsolescent missil
es
would
be removed and reprocessed.
¢ Remove one of the two divisions in Korea, and later cuts in other
Far East centers.
¢ Reduction of support elements in Europe, but not of combat
strength.
¢ Thinning out many Army units.
¢ A slow-down
in arms
purchases.
° A return to the 16 division strength of the Army when present experiments with a highly mobile “air assault” division have been co
mpleted. Later, one or more divisions may be dropped, because the use
of
C-141 transport planes enables the Army to move very rapidly and give
14 divisions more effective “deployability” than 16.
|
¢ A delay in ordering construction of new aircraft carriers. Money
has been provided by Congress for one, but the date of construction
may
be pushed as far ahead as 1966, and then dropped or altered radically.
* A cut in the 15-carrier fleet now regarded as essential by the Navy.
¢ Speeding up the retirement of B-47 bomber squadrons and a proportional reduction in personnel.
No estimate of dollar savings is given, but Watson reports that 60,000
men would be dropped from the services. It would be, of course, quite a
coup for the President to announce in an election year a significant cut in
_ Sefense spending.
7
IB:mp
oeiu
42
9/24/63
(Source:
''The Correspondent"
- No,
28 July - August,
1963
- Page
5)
U.S.
Unemployment Far Higher
eee
Than in Other Countries
eames
isienssnasutnnmnsiscssinisensnsesgemtpenetyeetassns ste
eapumsce
In 1960, the rate of unemployment in the United States was fa
r above the >
unemployment rates in six other major industrial countries.
(Canada's rate
of unemployment
was
above
that of the U.S.)
Definitions were adjusted to the American definition of une
mployment.
year 1960 was the latest year for which complete data were
available.
1960 was a more favorable year for the U.S. since unemployment
of the labor force compared to 6.7 percent in 1961,
Country
United States
Canada
France
Germany (F.R.)
*Adjusted to U.S.
Unemployment
(percent)
5.6%
7.0
ie
1.0
oeiu42Zafl-cio
Country
Great Britain
Italy
Japan
Sweden (1961)
5.6 percent
Unemployment
(percent)
Rate*
2.4%
4,3
a.
2
definitions
SOURCE:
4-19-63
Rate*
was
The
Actually,
''Measuring Employment and Unemployment!!!
President's Committee to Appraise Employment
and Unemployment Statistics
U.S,
Unemployment
-- March
1963
In March 1963 there were 4,501,000 persons unemployed throughout the nation,
up 119, 000 from the year-ago level.
Ad additional 2,192,000 persons had to
work short hours, or were able to secure only a part-time job, due to economic
reasons,
The
seasonally adjusted rate of unemployment
labor force.
in February.
since
in March was
5.6 percent of the
This compares with a 5,8 percent rate in January and 6.1 percent
(The adjusted rate has dropped below 5 percent in only one month
November
1957.)
BLS says "labor force time lost through unemployment and parttime work...
for economic reasons, as a percent of total man-hours potentially available
to the civilian labor force" was 6.6 percent in March, compared with 7.1 percent
in February,
6.8 percent in January,
SOURCE:
4-19-63
oeiu42Zafl-cio
U.S.
and 6.7 percent in March
Department
of Labor
1962.
- Item sets