Full text of Reuss Proposal to Let Dollar Float Has Great Merit
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A 18148 CONGRESSIONAL RECORD— SENATE A. No, IJbaven't. The Secretary of the Army comes into the picture only after the current review by General Connor, the 3rd Army Commander, Is completed and then the two intervening court reviews are completed— the Court of Military Review and the Court of Military Appeals. The first review 1 man b datory, the second one depends as one of the parties’ appealing to the civilian court, the Court of Military Appeals. And only after those three intermediate reviews are com pleted does the option arise of going to the Secretary of the Army with respect to sen tencing. Q, So you probably won’t get to do It then before you leave In June? A. Oh, no, th a t’B'quite clear. Q. Mr. Secretary, the defense lawyers at Fort Meade yesterday charged th a t your de cision* with regard to Oenerala Koster and Young were prejudicial in the case of Colonel Henderson. Can you comment on that, sir? A, No* I don’t think I should—I’ve con sistently taken the position th a t I shouldn't comment on the My Lai cose at all for good legal reasons, and I think it's safer to adhere to that. q . Then you presume that it waa not pre judicial or th a t it did not indicate command influence? A. That’s right. q . To go back to yo\\r first answer—you said the wisdom of our entry Into Vietnam eould not now be assessed. Could I ask you, in the light of your long Borvioo and the turmoil here at homo and the long drawn out nature of the war, If you now have any doubts about our entry into Vietnam? A. Yen, I think I would, tout as 1 Hay, I'm not myself “-I haven't vouched a personal final ootfoluMan, l think If It turns out wo achieve our objective—and I think thero Is a good chance that we still can—namely, that they stand on their own feet with a viable and stable government th at ean defend It self, andthen if domestically wa recover from our discouragement and current divisive altnation, then I think on balance It may turn to have been the wlap thing to do, I think we’re going through today a critical period where we are ah a nation discouraged by our experience in Vietnam, discouraged toy the other problems of our society aa a whole— drugs, for example, and the polarlaatlun among the raoea, If this were to result,in a return to an Isolationist policy or a neolaolatloniat policy, If this were to result In significant unilateral reductions of force in Burope, whloh in turn caused the Germans to accommodate w ith’the Soviets and vmdermlne the possibility whloh looks so promlsIng-today with the potential entry of Europe in the Common Market—the potential of de veloping stronger ooheaiveness among the Western European countries and a greater power to contribute to their own defense. If that were all undermined by a revulsion with respect to our experience in Vietnam, then I think surely it would have been an unwise thing to have done. I hope and think th at we’re mature enough not to let th at come about and to distinguish between Asia and Western Europe. I think myself the Nixon policy, it is clear, means in ABla a greater reliance on allied manpower, but I think it also Is clear th a t it means Western Europe la still the center of focus of our international policy and th a t stabil ity in Western Europe is absolutely essential to the kind of free world that we know, and that we will make the sacrifices th a t are, neoessary to maintain the force levels, to maintain stability, and to buy the time. These foroe levels in my view buy time for Western Europe to develop these political institutions whioh you see growing right be fore your eyes, the Common Market being the most im portant one. Then as those in stitutions develop, the tremendous resources of Western Europd—which are greater than the resources of all the Warsaw Pact put together, greater in population, greater in Gross National Product—those great re sources then can be effectively used in their own defense. And then our TJ.S. burden will be lessened, but It won’t be lessened if we don’t stay the course and have the patience. If we unilaterally move now to withdraw, we’ll undermine this hope; and there’s a real danger th at the Germans will turn east as they have so often in their history. Q. Do I understand you to say th at the German Ost Polltlk is Inconsistent with a Strong Common Market? A. No, I don’t. In fact, the Ost Polltlk 1b, as Helmudt Schmidt has made so clear, de pendent on a strong NATO. .The building of bridges in the proper way from a strong Ger many to Russia Is made possible only by a strong NATO. That’s what I understand Ost Polltlk is. But If we unilaterally with draw, then we force the Germans into ac commodation with the Soviets, sort of a Finlandlzation of Germany; and th at’s something entirely different from what they now contemplate by OBt Polltlk. Q. Mr. Resor, again back to the figures. You said that you need the draft extension two years if you are not going to run 100,000 men short of the minimum number the Army will have on board. What la th at num ber from whloh you would be 100,000 short? A, I t’s certainly no more than 000,000 and even at an Army as low as 000,000 you would still be at least 100,000 short, I think ftotually It’s a figure lower than that. I think It's a flguro around 870,000, and you would be 100,000 short of th a t figure, That’s the end of FY 7a figure? tC 78. Now, this Is not a—we haven’t set the 73 budget yet, and so this is Just look ing at the impact, of a no-two-year exten»M trying to got a range of what the on, impact would be, Now, of course, you would have a very serlous-~moro serious—impact on the Reserve Components, They would go down a couple of hundred thousand below their currently mandated manpower level. Q. Mr, Secretary, would you say th at over all in future our country might be better off if our Army did not get involved In an other Asian land war? A. Yea. Well, I don’t think, again, I think It’s trrribly unwise to generalise for long periods in the future, but I think certainly one would say th at we wov;ld weigh much more carefully the use of ground troops in Asia because, I think, we see more clearly today the coats of it, We Bee more clearly the difficulties of limited war; but I think one of the things that was done right In the Vietnam War, and was done right In the Korean War was that It was a limited use of power for a limited objective, whloh of oourse turned out successfully in Korea. Korea is, I think, something we can be very proud of, the result of our efTort there, because today Korea’s Gross National Produot expands at 10 per cent a year. It has a strong ground force capable d 'defending themselves against t the North Koreans alone, and in South Viet nam we learned from the Korean War and we continued the polloy of a limited applica tion of military power, I think the days of all-out war are gone, and I think it's clear th at our policymakers have aooepted that conclusion, of course, because of the prob lems of nuclear weapons. Q. Has Vietnam shown, Mr. Secretary, that our Army possibly oannot win a conclusive victory against jungle guerrillas? A. No. I think vlotory is an ambiguous term whloh oauses, I think, a lot of confusion if applied to the Vietnam scene. I think you have to keep firmly in mind what our ob jectives are. Our objectives are th at the Gov ernment of South Vietnam shall be viable and be able to stand on its own feet, and I think we have1the potential to aohieve that objective. I don't think, a s,I indicated the other day, th at it's by any . means assured; but I think th at we have a;;]good chance of June k, 1971 achieving that. We will have done it, if we do, by this total strategy of the military, the economic, and the political together; and that it what I think we’ve learned from the Vietnam War—a better understanding of how to deal with guerrilla attacks and in surgency. Q. But does it seem practical to eradicate a guerrilla force? A. What we’ve learned Is th at you have to first f u r n l B h relative security for most of the population. T hat’s what’s going on in the Delta today under General Trung, who is as fine a military leader as there is, as we have In our Army. He has set up fire bases throughout all the enemy based areas, and he’s going to provide relative security in the Delta. That doesn’t mean you’re not going to have some terrorism, and that will con tinue, and continue for a long time; but if you have relative security, then you control the population, and the guerrilla movement no longer can replace its losses. And grad ually over time it will be able to be handled by the police power of the state more and the military less. Q, Aren’t you saying, sir, that It’ Impos s sible for one side to fight a limited war? We say we’re fighting a limited war but they’re not, they’re fighting all out. A. I’m talking limited in the sense of we’re not using our total military power, namely for example, our nuclear power. We’ve never bombed cities, and I think quite wisely so, Thank you very much, After coordination with Mr. Kester, Dep ASA(M&RA), LTC Smith contacted Fred Hoffman, AP Pentagon Correspondent at 1210 hours, aa May 71 and provided the following Information regarding his question on costs for a volunteer force: •’The Gates Commission underestimated the number of accessions required—under estimated by approximately 36,000 the num ber of true volunteers (partly because they did not have the benefit of the experience gained from the lottery system ); and did not differentiate for oombat skilled and non combat skilled personnel, “Our accessions plus the number of true volunteers, computed by the Gates Commis sion formula, indicate th a t the cost for FY 73 will be In the neighborhood of 7.5 billion dollars—although this too Is still a very im precise figure—instead of the 3,7 billion dol lars estimated by the Gates Commission,” REUS8 PROPOSAL TO LET DOLLAR FLOAT HAS GREAT MERIT Mr. PROXMIRE, Mr. President, there is no Member of Congress who sur passes Congressman Hknry Reuss of Wlsoonsin in his knowledge of interna tional financial and eoonomlo affairs. Time and again he has proposed innova tive and constructive ideas which the highly conservative international bank ing community has originally opposed, but which in the end they have adopted— usually without giving Congressman Rsuss the great credit he deserves. Now, once again, he has made an inno vative and constructive proposal. And once again the Treasury and the inter national financial community has poohpoohed the idea. But Congressman Rkuss is right and they are wrong. I predict that in the not too distant future they will accept his proposal. Congressman Rxuss has introduced a resolution to let the dollar float in the international currency markets. At the present time its price is pegged. Unlike other commodities—and money is a com modity—Its price is fixed arbitrarily. But a floating dollar would introduce June 1 , 1971 > CONGRESSIONAL RECORD — SENATE The U.S., i$e adfTsd, ought to compensate foreign central binks for any loss in the* value of the doll/jr reserves as of June 1, provided they &vom gold and other dealings th at could frustrate the ‘'unilateral" action he recommends. 18149 sons, half were deferred and only 28 ever served in Vietnam. One was wounded—only one. For comparison, let us look at figures from a single minority group. Forty-five per cent of Mexican-Americans eligible for the draft are drafted, while only 19 per cent of Anglos eligible for the draft are drafted. As a result, the former ethnic group, which constitutes 1 only 5 per cent of the American population makes up 20 per cent of the casualties In Vietnam. E. James Liebermah, from whom comes much of the argument presented here ("War and the Family,” Modern Medicine, April 10, 1971) calls this attrition "genasthenia" (race weakening) to bring home the concept of sys tematic, albeit unwitting, attenuation of ethnic group B tr e n g th . As he states, "This group who are hurting the m ost— and griev ing the most—cannot be heard above the regimental drums, the blaring television, the Congressional oratory” and are living in poverty and deprivation—tho tragic version of a silent majority. To me, such examples constitute a cogent argument against the present military draft system. into the present-day international money mechanism the automatic adjustments reflecting the genuine economic condi tions in the world. If U.S. prices are too high, if the economy is sated with infla-r tion, then a floating dollar would adjust those prices internationally to their real TRIBUTE TCI- AUDIE MURPHY market price. That would help stimulate our exports, when prices are too high; Mr. TOWER. r. President, on Friday, bring in dollars from abroad, and help May 28, a tragicj airplane accident took to make economic adjustments long over the life of one f America’s most disdue. tinguished soldi' s. Audie Murphy was Congressman R euss is right. It is only 20 years ild when his heroism amazing to me that his obviously correct stunned Americi and gave each of us a proposal is opposed by the Treasury. For sense of pride fc t he was ours. During the only substitute for it is a controlled World War II, war of unprecedented market and a controlled price which bravery, Lieuten jnt Murphy became our otherwise highly conservative bankers most decoratecji erviceman. In and of shun. themselves theki decorations had little What they appear to want is competi meaning—a pie of metal, a scrap of tion for others* but controlled prices for cloth. He gave ost of them away to themselves. children. It Is th fact that each of these I commend the Reuss position to the medals represen some heroic act, a risk Congress and the country. I ask unani of life and safet: that gives meaning to mous consent that a short article from the fact that Ain e Murphy was our most G e o r g e M a r g o l ib , M .D , the Wall Street Journal reporting it and decorated hero. e was our bravest hero, Hanovkji. N.H., M a y 17, 1071. the opposition to it be printed at this Of 235 men in hi; original company, only point in the Record. he and a suppl; sergeant survived the There being no objection, the article struggle from Iti ly to southern Prance. j. THE SOLAR ENERQY \vafc ordered to be printed in the R ecord, ALTERNATIVE It is Audie Mi ii‘phy'3 selfless courage ! , as follows: that serves as ai nsplration to all Amer- , Mr. HATFIELD. Mr. President, we all RttPHEaiSNTATtvrc Rkuhs Would List Dollak leans, young fi d old. The altruistic ; recognize the fact that th iB country is "F loat" Down; Resolution Sbhn At willingness to li f down one’s own life | facing a grave energy crisis. A rising tracting Little I ntbhubt for his comrhdtj is man's most noble I population with increasing power needs WA8HINGTQN.4-A resolution calling for the trait, Lieutenant] urphy exhibited that j must have onorgy supplied in a mannei; Nixon admin istration to let tho doll nr "float" I which will not leavo us with a serioulfe down in international curronoy markets was trait from Casab incft to Franco, I take particull r pride in the fact that 1 damaged environment. . I introduced by Hop. Henry Reuss, but drew Audio Murphy w i from my home State, ! Among the alternatives which must bo an instant Treasury rebut tal, The proposal by tho Wisconsin Democrat, He was born nj ar Kingston in Hunt j considered to meet long-range power who heads tho Initornatlonal exchange unit County. Tox. He ontrlbuted enormously i noods is solar energy. Certainly, more of the Ooiwrfmstonal Joint Economic Com to tho Texas hei tape of courage which ! rosources must bo dlroctod toward remittee, is similar to the views of a number has found its \v ,y from the Alamo to ! soarch and development of this nonpol | of European financial authorities who con ,Khe Sanh. Wo. s all not forget him. luting form of energy. tend the dollar Is overvalued and should pti The International Solar Energy So allowed to drift moderately lower. ciety reoontly held a conference at tho Howevor, thoro has been little thought ANOTHER SILENT MAJORITY NASA-Goddard Space Flight center near about aueh matters in Congress generally, Mr, MoGOVEl . Mr. President, a New Washington. I ask unanimous consent analysts say, and they figure the resolution will attract little interest. A Treasury spokes Hampshire doot r has written to the i that the keynote address of Dr. Manfred man said emphatically th at Mr. Reuss’s pro editor of the Ne^ York Times concem- I Altman, of the University of Pennsy^ posal "Is certainly not the position of the ing the inequitie* of the draft. Of par- ! vania, be printed in the R ecord, U.S. government” noting that Secretary ticular concern re his remarks which There being no objection, the speech John B, aonnally made clear last week in a indicate that c t rtaln minority groups j was ordered to be printed in the Record, speech in Munich th at "we aren't going to are contributing heir sons to the Armed | as follows: devalue" the dollar. A d d r e s s b y D a. M a n f r e d A l t m a n At present, the dollar is held to a fixed Forces in far grei tr measure than would j A keynote speakor is to be a fighter. He value by the Treasury's practice of paying be required by thj ilr share of the Nation’s | la to set the tone for a meeting not unlike out gold at the official price of $36 an ounce population. I ask unanimoj is consent that the let- ‘ the football^ coach who inspires hiB team to foreign central banks wishing to turn in excess dollars. "Only by closing the gold win ter from Dr. Ge< ge Margolis be printed to go out and conquer. Unfortunately there is also another kind dow," Mr. Reuss argued, oan the dollar "And in the R ecord. a new and sounder relationship" with the There bing no objection, the letter to of keynote speaker—namely the one. who comes not to praise Caesar, but to bury him! Japanese yen and other undervalued curren the editor was o: dered to be printed in cies, thus avoiding "deterioration of our trad Some of my remarks may suggest the latUw: ' i but please believe me when I tell you ter, ing position and a return to trade autarchy," the R ecord, as If > q s The dollar Is no longer b o far out of line against a number of other ourrencies, Mr. Reuss noted, with Germany, Holland and Canada currently allowing their ourrencies to float up in exchange markets, and with Austria and Switzerland recently having set higher fixed parities for their currencies. But Japan, he said, oah still "flood our markets" with its goods | and, thus, goad Amerloan business and labor into seeking import ourbs th at "could te the end of free trade." Talk of the dollar going down in value, Mr. Reuss suggested!, "may vory well" prompt the Japanese central bank to follow the German example and ;iot the yen float up and the dollar down in!Japan’s exohange markets. "Thla would be a good thing for the U.S., for the world monetary system, and in the end for Japan, too," ho said. CXVII- -114.1—Part 14 A nother Iil e n t M a j o r it y Tq the Editor: As Congress coi slders extension of the military draft it imperative th at it review its extraordii tfily, vulnerable position. Over one mlllio: Americans have had a close family membi • either killed or seriously wounded in Vietns[. n, But it must be reoognlzed that the risl s arte not shared equally across the populatij $n. The bereaved families overrepresent the great" American underclass, consisting of ess privileged whites and all but the vory. x )per crust of nonwhites. Two statistics drlv home this point. First, let us look ^t Congross itself. A Cong r e B s lo n a l Quarter / survey (February 13, 6 1070) found th at »nly 3V per cent of the Congressmen had s ns or grandsons who saw combat in Vietna l. Of 234 draft-eligible | that I really mean to be the former—Just ; bo a little patient with me. ^ Not very long ago one of my friends told : me the following story, ' His little daughter had juBt received many beautiful Xmas toyB — Must share with little visitor, Beat him up. i Why? Refused to share her toyB, In some ways this little story reminds me 1 of solar energy proponents and the public at large. They refuse to take us seriously and will not play w ith our toys—Why? I am first of all reminded of a conver- • sation I had with a gentleman who is pretty high up the ladder in an Electrio UtUity which shall remain nameless. We talked about the aerospace industry and ito poten-