I sincerely believe that Interama, located as it is, at one of the principal gateways from Latin America into the United States, and designed to provide industrial, cultural, recreational, and trade facilities of interest to visitors from Latin America as well as to our own citizens who are interested in what Latin America has to offer, can make a major contribution to inter-American understanding and play an important role in promoting the objectives of the Alliance. for Progress. I believe that the theme of Interama, "Progress with Freedom," is an excellent statement of the aspirations of the Latin American people and of the objectives of U.S. policy toward Latin America. The progress which our Latin American neighbors and business partners are struggling to achieve is, of course, a compound of economic, social, and cultural elements, all of which will be ideally represented in the Interama exhibits. I have had many discussions with Dr. Muskat, the very able and energetic chairman of Interama, and I know that he shares my belief in the fundamental importance of education and educational interchange in promoting economic and social progress and, hence, in achieving the aims of the Alliance for Progress. Interama will place great emphasis on education; and the cultural, industrial, and commercial exhibits will, in themselves, be educational to our own tourists and Miami visitors as well as to Latin American travelers and exhibitors. North Americans who visit Interama will have a matchless opportunity to learn about the geography, history, culture and economic background of our sister Republics in Latin American and, thus, to achieve that broader understanding which is the only sound basis for inter-American cooperation and good will. Latin American visitors, on their part, will obtain a new understanding of our economic system, our political institutions, and of our foreign policy objectives. From the industrial exhibits, they will become familiar with American goods and the excellent qualities of our industrial products. This should lead not only to an expansion of our trade with Latin America— already a customer for almost $4 billion of our exports annuallybut to a broader interchange of methods, ideas, and people to the great benefit of all the American people, North and South. It seems to me that it is essential for the achievement of these aims that the U.S. Government, itself, be represented by an exhibit which exemplifies its interest in Interama, in the promotion of American foreign trade, and in the progress and development of our Latin American neighbors. It should be an exhibit worthy of the great Nation which it represents and portrays, and it should support and carry out the theme of Interama, "Progress With Freedom." The fact that the U.S. Government, through the Community Facilities Administration, already has authorized a loan of over $20 million to Interama, and that a prominent Wall Street firm has entered into a commitment to underwrite a similar amount of bonds for financing the Interama project, is indicative of the support which this highly worthy project has obtained, both from our Government and from American business. It is not only logical but in my opinion, essential, that the present bill to provide for participation of the U.S. Government to Interama be approved by Congress and that the funds be made available to Interama at the earliest possible date so that there will be no unnecessary delay in startup time. I know that several of the Latin American governments have made known their deep interest in Interama, and I was present at the executive committee meeting of the Inter-American Council of Commerce and Production, with which I have been connected for many years, which was held in Buenos Aires in March of this year, when that important hemispheric organization of business and industrial leaders of the Americas voted unanimously to support and sponsor the Interama project. Approval of H.R. 30 would provide a convincing demonstration of active U.S. Government support for Interama and will provide the needed impetus for the efforts now being made by the Interama authority to obtain the broadly based industrial support and participation that are essential to its success. Thank you. Mr. FASCELL. Thank you, Mr. Balgooyen. Dr. Muskat. Dr. MUSKAT. I would now like to call on Mr. Herbert Holley of the firm of Economics Research Associates of Los Angeles, who made the economic and feasibility studies for us. Mr. FASCELL. Mr. Holley. STATEMENT OF GEORGE HERBERT HOLLEY, VICE PRESIDENT, ECONOMICS RESEARCH ASSOCIATES, LOS ANGELES, CALIF. Mr. HOLLEY. Thank you, Dr. Muskat. Economics Research Associates (ERA) has made two feasibility studies of Interama, first in May 1963 and a second study just completed. In both cases we concluded that the project is feasible both in physical and financial terms. In our most recent analysis we reviewed all aspects of Interama, including organization, financial resources, operating plans, actions taken to date, and projections of the future on the basis of past events. We concluded that Interama is well organized, with ample prospective earning power in relation to its expected debt and financial structure, and that a commitment of the U.S. Government to Interama is the remaining necessary step in assuring Interama's ability to go forward with its plans. Mr. FASCELL. Thank you very much, Mr. Holley. Mr. FRELINGHUYSEN. Mr. Chairman, are we to get no specifics? Dr. MUSKAT. We have a final ERA report which will be submitted to each member of the committee. Mr. GROSS. Mr. Chairman. Mr. FASCELL. Mr. Gross. Mr. GROSS. Does Economics Research Associates have a contract with the Federal Government otherwise? Does it have any contract with the Federal Government, period? Mr. HOLLEY. Not directly at this time; no. Mr. GROSS. What do you mean by "directly"? Mr. HOLLEY. Well, we have contracts from time to time with people who have contracts with the Federal Government. We do not have a direct contract with the Federal Government. Mr. FRELINGHUYSEN. Mr. Chairman, I hope somebody will give us an indication of how much revenue is expected, where it is coming from and what sort of contributions may be expected, apart from what has been said here. Also, I would hope Mr. Pepper would explain what the $11 million would be spent for, if appropriated, and what the $1 million a year thereafter would be spent for. So far nothing has been spelled out as to the nature or the feasibility of this whole thing. We have had mentioned very high-flown objectives like dramatizing the development of our civilization, but I would like some specifics about the practical side of this. In view of the very unfortunate experience of the New York World's Fair we need more solid assurances as to the feasibility of the use of this very expensive property for this purpose, which might be well used for residential pur poses. Dr. MUSKAT. We will be guided by the wishes of the committee as to when we take that up. Mr. FASCELL. How many more witnesses do you have, Dr. Muskat ? Dr. MUSKAT. Five or six. Mr. FRELINGHUYSEN. Will we meet tomorrow? Mr. FASCELL. I am hoping we will get through today. Dr. MUSKAT. I would like to ask for a short statement, to show what private enterprise is willing to do, from Mr. James Reilly of Goodbody & Co. He's the man who gives the money. Mr. FASCELL. Mr. Reilly. STATEMENT OF JAMES F. REILLY, GOODBODY & CO., UNDERWRITERS, NEW YORK CITY Mr. REILLY. Thank you. My name is James F. Reilly. I am in charge of the Bond Division of Goodbody & Co. in New York City. Goodbody & Co. has 75 branches throughout the United States, 19 being in the State of Florida. Our interest in Interama has been of long standing. It is not based purely on a patriotic situation with regard to the State of Florida or Dade County, but on a straight feasible bond issue. In 1962 we underwrote a bond issue of $8 million for the InterAmerican Center Authority, and we are now prepared to underwrite an additional $13 million bonds based on the feasibility report of Economics Research Associates of Los Angeles, which was one of the prerequisites of the indenture, that when a recognized feasibility engineer said this project was feasible, that Goodbody & Co. would underwrite the remaining $13 million bonds. Mr. PEPPER. That is $21 million, an additional $13 million; $8 million has already been advanced to the authority. Mr. REILLY. Yes. Mr. FASCELL. Thank you, Mr. Reilly. Dr. MUSKAT. I would like to ask Mr. John Mitchell to stand and remain silent. This is the man who has kept us honest. (Mr. Mitchell stood in the audience.) Dr. MUSKAT. I would like to ask Mr. Ed Stone to make a statement. We have commissioned Edward Durell Stone as the architect for the U.S. Pavillion at Interama. I am sure you all know him. He was unable to be here and has sent his son to speak for him. Mr. FASCELL. Mr. Stone. STATEMENT OF EDWARD D. STONE, JR., REPRESENTING EDWARD DURELL STONE, ARCHITECT FOR THE U.S. PAVILION, INTERAMA Mr. STONE. Thank you. I am speaking for Edward Durell Stone, of New York. First, let me say that I am particularly honored to be selected as the architect for the U.S. pavilion at Interama. I was so privileged once before and the Brussels pavilion was one of the great milestones of my life. I sincerely hope that our work at Interama will be even more significant. Miami has given us opportunities: An international crossroads, a wonderfully mild climate and a magnificent bay at our doorstep. The Interama Authority has provided still more: 1. A forthright overall site plan. 2. The opportunity to build permanent buildings-eliminating the terrific waste inherent in temporary construction. 3. The U.S. Pavilion enjoys a most beautiful and dramatic site. 4. An imaginative and yet flexible program. This program calls for certain essential elements: (a) A reception and living space for the resident commissioner and his family, and the guides. (b) An auditorium-for plays, concerts, movies, lectures, and other varied performances. (c) Exhibition space. (d) The major facility will be an automated audiovisual library where a visitor can select filmed excerpts from a broad spectrum of past history and current events. Typical general topics might be scientific discoveries, "Great Immigrants," "Peace Corps," and so forth. For my part I have established certain goals for my performance: 1. The building will be flexible enough to house a wide range of exhibition and presentation techniques, some clearly foreseeable, others waiting in the distant future. 2. It will be an open and inviting building, in sympathy with the climate. 3. It will be gracious befitting its role as the host building. 4. If I work hard and enjoy good fortune as I have occasionally in the past, the U.S. Pavilion will be beautiful and hopefully representative of the highest aspirations of our Nation. Mr. FASCELL. Thank you. Dr. MUSKAT. In order to save time, I would like to introduce in the record a statement from George Moore, president of the Inter-American Council for Commerce and Production. Mr. PEPPER. And president of the First National City Bank of New York. Dr. MUSKAT. That is right, and one who was involved in the New York World's Fair and, in spite of that, Mr. Frelinghuysen, is supporting this. Mr. FASCELL. Without objection the statement of Mr. Moore will be made a part of the record at this point. 53-249-65--3 (The statement referred to follows:) INTER-AMERICAN COUNCIL FOR COMMERCE AND PRODUCTION, Dr. IRVING E. MUSKAT, I understand that these are also the objectives of Interama and with the support of the various sectors of the community, I believe Interama can make an important contribution to the Alliance. I would like to be kept informed of the progress of Interama. GEORGE S. MOORE, President. Mr. FASCELL. Is there anything further, Dr. Muskat? Dr. MUSKAT. I have submitted complete backup material that weighs approximately 15 pounds. This is the ERA report, and we will be glad to present it in detail for you, sir. Mr. FRELINGHUYSEN. Mr. Chairman, that is a lot of material, but if we are to justify this proposal we should have something submitted for the record. Dr. MUSKAT. We will be glad to do that." Mr. PEPPER. Mr. Chairman, if I may just make a brief statement before inquiries are made at the pleasure of the chairman and members of the committee, I would like to direct your attention to H.R. 30, which I think you have in a little packet I sent around. I would like to show you the amendments we would like to make in that bill, and I would like to ask that the same amendments be considered as having been made by the other 10 members of the Florida House delegation, including this distinguished chairman, because all of us have submitted the same bill, which was prepared originally by counsel for Interama in cooperation with the legislative counsel of the House, and the general bill was patterned after the bill under which the Federal Government participated in the Seattle exposition, but we have found it necessary, as time has progressed, to make certain changes. On page 1, line 6, after the word "and" a little below the middle of the page, strike out "determine the extent to which the United States shall be a participant and as exhibitor at" and insert the words "provide for participation by the United States in." You will note the President, by the provisions of the bill, is directed to choose or delegate an executive department or independent agency which shall have the power of the U.S. Government. On page 2, line 1, we strike out the word "exposition" and substitute "cultural and trade center" because it is very evident if you studied the character of Interama that it is not just another fair. In fact, it 1 See appendixes. |