CONGRESSIONAL RECORD -- SENATE


March 22, 1966


Page 6494


PROPOSED SALE OF STEEL COMPLEX TO RED CHINA


Mr. McINTYRE. Mr. President, I was extremely dismayed to learn that the West German Government has approved the plans of a French-German group to sell a $140 million steel complex to Red China.


It is also my understanding that the French Government is expected to approve these plans by the end of the week.


It is common knowledge that Communist China is supplying tons of equipment to its North Vietnamese allies -- equipment which is being used against our own American soldiers.


Construction of such a large steel complex in Red China will directly enhance Peiping’s ability to threaten its neighbors in Southeast Asia and to supply weapons to its henchmen in North Vietnam.


This steel mill will not materially contribute to better relations between China and the free world and could be detrimental to the chances for peace in southeast Asia.


Mr. President, I strongly suggest that West Germany and France use their productive capacity to supply equipment to the forces of freedom in Vietnam, and not to the enemy. It is high time

that nations like West Germany and France realize that their peace and security as well as ours are at stake in southeast Asia.


My good friend and colleague, the distinguished Senator from Maine [Mr. MUSKIE], has just returned from a special mission to West Germany and finds approval of this steel complex an incredible development.


Mr. President, I ask unanimous consent that Senator MUSKIE’s comments on this proposal be printed in the RECORD.


There being no objection, the statement was ordered to be printed in the RECORD, as follows


STATEMENT BY SENATOR EDMUND S. MUSKIE ON THE APPROVAL BY WEST GERMANY OF A GERMAN-FRENCH CONSORTIUM To BUILD A STEEL COMPLEX FOR COMMUNIST CHINA, MARCH 18. 1966


Last week I returned from a presidential fact-finding mission in West Germany. In Germany. I met with several high-ranking government leaders, including Chancellor Erhard. They expressed strong support for American policy in Vietnam.


For this reason. I find the approval by the West German Government of the decision by a German-French consortium to build a $140 million steel complex for the Chinese Communist Government, an incredible development.


Such a plant is clearly related to the war making capacity of the Chinese Government, to its ability to produce armaments and to its capacity to supply the North Vietnamese Government with arms.


The construction of the steel mill cannot contribute to the interests of the free world in reaching an honorable and peaceful solution to the Vietnam crisis.


I recognize that the French Government has no interest in coordinating their actions with us, but the consortium agreement is not consistent with the expressions of sympathy and support for U.S. policies in Vietnam and southeast Asia which I received from German officials and citizens during my recent trip to that country.


The timing of the West German Government’s decision to approve the steel deal could not be worse. It suggests that short-term economic gains are more important to the West German Government than support of our policies in Vietnam.


Mr. McINTYRE. Mr. President, West Germany’s decision to allow construction of a steel complex in Red China is particularly interesting in light of other West German sales of arms and strategic commodities. Recently I became aware of a proposal by West Germany to sell Hispano Suiza 20 millimeter automatic weapons to the U.S. Department of Defense for use by our Army. American producers, such as the Springfield Armory in Springfield, Mass., can produce competitive weapons.


If the West Germans want to get into the business of exporting strategic commodities, Mr. President, then I think that they should take a good hard look at who their customers are. No nation which is arming our declared enemies should expect this Nation to be a willing customer.


I am today drafting letters to President Lyndon B. Johnson and Secretary of State Dean Rusk urging them to exert our influence with the West German Government and any influence we still have with the French Government to bring about a reversal of this deplorable act. I will urge the President and the Secretary of State to take stern measures against these Governments if they decide to go ahead with their plans to allow construction of this steel complex.