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January 18, 1955


PERSONAL AND COEFIDENTIAL

MEMORANDUM FOR: Director ll\16hes

The tol.lov1ng notes on thia morning's Legislative Conterenco maybe


of use to )'OU:

Havaiisn andAlukan Statehoot\ - Senator Knowl.and ~•tad that the


Democrats m7 report and approve a bill tor .-tateboo4 tor both Aluka
an.4 Hawaii tor the purpos~ ot torcing a Presidential veto. Mr. Martin
believed fil,eaker Ra:,burn vould :not conaent to such a bill.
1'ore1p Economic Pollg .. Speaker Martin commented on the heaY7 oppo11-
t1on to be expected concern1ng extension of the Trade Agreements Act
but vaa contident the ft.4mhi2atrat1on reconunendatioDs would b e ~ - .•
He suggested tba pc•a1ble deetrab1Uty or 4e'riaing en alternative ar-
rangement vhereby' certain taritta became applicable after importattona
reached a certain pereentage ot domeatic; consumption. Both he and
Senator Saltonstall empbasized the dasirabll1ty or an ettort to secure
support from Nev Engl and textile leaders.

Senator Knovls.nd suggested that the recommended tax ditf'erential for


foreign investment vould be a critical issue.
Following a ref'erenee to the situation of th= coal. 1ndustrJ', Senator
Saltonstall and Speaker Martin comnented on the dependence of the Nw
England states on importation o:t Venezuelan oil.
Anti-'rrUst Law ... Representative Halleck believed it desirable to
a~;iiithen the content of the forthcoming study trom the J'uat1ce De-
partment OZl anti•truat laws. Mr. Shanley will di1C1Jaa this with the
A.ttorney Cnneral.
Minimum Wage Legislation - Senator Knowl.an4 indicated that thero vould
be no difficulty 1n securing the recommended increase ot the minimum
wage to 90<!,.
Senator Knowland and Representative Halleck UTged great caution 1n regard
to aDY extension of coverage ot th.e Mini.mum Wage Act. Mr. Halleck em-
phasized maintenance of exemptions tor seasonal workers in agriculture
and tood processing. The Praisident cited his references to this 1ubject
To Director IIugbes • January 18, 1955 - 2

i n ~ lcotlomic Report, etc., and indicated hia 41stavor tor any a ~ t


to extend CO'l'U"&ge into intra-state activities.

Natural Gas Ree1!torz Action • Senator Sal.tomtall suggested tbe deair•


abiUty of an Adm1n1strat1on statement or policy vith regard to regulation
ot natural gas at the vell. Representative Ralleelt commenw<l that a
Congressional intention to avoid such regulation vu apparent in its ap-
proval ot a bill he helped draft sometime ago but vhi.eh waa aubaequeutly
vetoed by PresidElnt Truman.

It vas suggested that the Democrats might Yi.sh to tako the initiative on
thu issue.

Tho ?resident indieatad his desire to withhold public com:nent pending com-
J.)l.etion ot the Cabinet Committee study on Energy Supplies and Resources
Polley.
School. Construction - ThaPresident briet'l.7 noted and expreased his 11k1ng . ,
-ror the proposals Mrs. Hobby bas now advanced to atimul.ata school con-
struction.
Defense Production A.ct .Amendment - Senator Knowland in~ed. about the
status ot a reportad recommendation for standby controls legial.at1on.
The President cmnmented on the need !or rapid action in event ot an enemy
attack, and stated that the matter would be d1sc:uased tully With the
Leadership prior to nny recommendation to Congress.
Semtor i'.Dov.land suggested thAt if' l.egisl.atiOn vere to be aubmitted
1t eon.tam a provision that the controls, once invoked, would bo eft'ective
onl7 tar 6o or 90 days during vhich Congress could determine whether
they should be continued. Representative Jialleck sugguted that mrtial
law could be illYoked instead, and cautioned againat standby control.I
legislation at this time. Senator Saltonstall agreed. Mr. Halleck did
believe it desirabl.e to have a specific bill at band tar 1Jmned1ate in-
troduction in Congress, when necessary.

Emergency Relocation - Sena.tor KDowland i n ~ u to the etatus or plans


tar an emergency rel.ocation site tar Congress. lie advised that no approach
had ever been made to Senator Bridges ar himseU' to reguut tbeir interest.

The Preai.dent proa:ued that responsible Admu--1.st:ration otticiala vou.ld


be in toucl1 with tbe:a quickly.

Absentee Voting tar Military Personnel. - Representative Balleck urged


tbat the AdxrdniBtl"atiou review this situation and lll0Ve qu1ckly to
urge the 11m7 State Legial&turea nov in aeesion to mod1ty- their stat.a
.,:;

t
To Director Bugh.es, January 18, 1955 - 3

rl!quirements ao u to facilitate absentee voting by lllil.1-tuy peraonnel..


He urged l'Z'OCedures to allow voting a :f'Qll ballot rather than only the
Federal portion of an:, ballot.

Foretp Operations - Senator Knowland inquired as to progreea on tM


Dodge report 1n connection with the forthcoming expiration ot FOA. Th8
Preewet advised that thtl organizational probla vaa under etuay. Re
th.a. etreaaed the need tor developing an Asiatic ecooomtc aaaietanee
progra?D.• part1eularly 1n the face of the current extensive Commun1st
effort 1n the economic ~here.
Economic Report - In a~tion with cl11tr1but1on ot the Econom1c Re•
port, the White ~ e staff will arrange vith the Republican leadership
for directing the "ttent1on of Republican Members of Congress to thOse
passages especially appropriate tor restatement 1n public edd:resaea.
. ,,

L. A. Minnich, Jr.
Assiatant Staff Secretary

Distribution
Gen. Persons
/Mr. Shanley
'-'Mra. Whitman
Dr. Hauge
?Ir• Morgan
Col. Goodpaster
Mr. Willis
Mr. Rabb
File

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