March 6, 1990 EXTENSIONS OF REMARKS 3567 EXTENSIONS OF REMARKS THE ANDEAN DRUG SUMMIT: examine ways to achieve a greater opening issues of demand reduction, consumption PROGRESS IN THE WAR of the market for Colombian and supply. Such a strategy also must in­ AGAINST DRUGS products. The Presidents noted President clude understandings regarding economic Bush's November 1 Andean Trade Initiative, cooperation, alternative development, en­ which constitutes an important step to­ couragement of trade and investment, as HON. WM. S. BROOMFIELD wards this goal, and they agreed to explore well as understandings regarding economic OF MICHIGAN further possibilities. cooperation, on attacking the traffic in illic­ IN THE HOUSE OF REPRESENTATIVES President Barco expressed his concern re­ it drugs, and on diplomatic and public diplo­ garding the application of antidumping macy initiatives. Tuesday, March 6, 1990 duties to cut flowers. President Bush noted The Parties recognize that these areas are Mr. BROOMFIELD. Mr. Speaker, I am that this issue is currently under review interconnected and self-reinforcing. pleased with the administration's energetic within the U.S. Government. President Progress in one area will help achieve Barco also expressed his concern about the progress in others. Failure in any of them and determined approach to fund and launch system used in determining Colombia's a new American attack on the scourge of illicit will jeopardize progress in the others. The sugar quota. order in which they are addressed in the narcotics. The Cartagena Drug Summit was a The Presidents stressed the importance of success and I want to share with my col­ document is not meant to assign to them a successful completion of the Uruguay any particular priority. leagues in the Congress the Bilateral Commu­ Round of multilateral trade negotiations, Economic cooperation and international nique that was issued by President Bush and and recognized the significance of increased initiatives cannot be effective unless there the Presidents of the Andean nations as well access for Colombia's tropical products. are concomitant, dynamic programs attack­ as the text of the Declaration of Cartagena The two Presidents agreed to intensify further the process of consultations be­ ing the production of, trafficking in and which calls for unprecedented cooperation in tween coffee producer and consumer coun­ demand for illicit drugs. It is clear that to be the struggle against drugs between the United tries with a view to accelerating negotia­ fully effective, supply reduction efforts States and our Andean partners. I .wish the tions that will lead to a viable new interna­ must be accompanied by significant reduc­ Bush administration and the Andean countries tional agreement, and issued a call to non­ tion in demand. The Parties recognize that good luck in one of the most important wars member countries of the agreement for the exchange of information on demand that America and those nations have ever their support of this valuable instruments. control programs will benefit their coun­ tries. fought. President Bush praised Colombia's seri­ ousness in meeting its international finan­ The Parties recognize that the nature and BILATERAL COMMUNIQUE, CARTAGENA, cial commitments. He reiterated the need impact of the traffic in and interdiction of COLOMBIA for international support to facilitate Co­ illicit drugs varies in each of the three An­ MEETING BETWEEN VIRGILIO BARCO, PRESIDENT lombia's sound economic and social policies. drean countries and cannot be addressed OF COLOMBIA AND GEORGE BUSH, PRESIDENT In this regard, he confirmed his Administra­ fully in this document. The Parties will ne­ OF THE UNITED STATES tion's willingness to study specific Colombi­ gotiate bilateral and multilateral agr~e­ The President of Colombia, Virgilio Barco, an proposals for obtaining additional re­ ments consistent with their anti-narcotics and the President of the United States, sources. effort~. specifying their responsibilit_ies and George Bush, met on February 15, 1990 at The two President's again indicated the commitments with regard to economic coop­ Cartagena, Colombia to reaffirm their deci­ importance of continuing programs . f?r eration and intensified enforcement actions. sion to continue the struggle against the technical training, equipment, and admmis­ UNDERSTANDING REGARDING ECONOMIC ASPECTS trafficking and the consumption of narcotic trative support for Colombian judicial offi­ AND ALTERNATIVE DEVELOPMENT drugs and psychotropic .substances, and to cials,. as well as continued assistance in The Parties recognize that trafficking in address aspects relating to bilateral rela­ terms of equipment and means for guaran­ tions. illicit drugs has a negative long-term impact teeing their safety in the struggle against on their economies. In some of the Parties, The two Presidents took note of the narcotics trafficking. threat posed by narcotic trafficking and profits from coca production and trade and The two Presidents reviewed the progress from illicit drug trafficking contribute, in stressed it must be confronted squarely and made in negotiations on agreements con­ eliminated. They also agreed that the prob­ varying degrees, to the entry of foreign ex­ cerning essential chemicals, the distribution change and to the generation of employ­ lem of illicit drugs must be addressed by the of seized assets, and export controls on international community in its various ment and income. Suppression of coca pro­ weapons and other materials use by d~ug duction and trade will result in significant, stages of production, trafficking and con­ traffickers, which will reinforce cooperation sumption. The President of the ynited immediate, and long-term economic costs in the struggle against illicit drugs. that will affect, in various ways, each of the States recognized that supply reduct10n ef­ The two Presidents agreed that the forts must be accomplished by significant Andean countries. Andean Summit was a significant step to­ The President of the United States will re­ reduction in demand. wards improved anti-drug coordination. The President of the United States ex­ quest Congress to authorize new funds for They pledged cooperation in bringing about the program during fiscal years 1991 to pressed his admiration for the leadership of the 1991 World Conference of Nations in­ Colombia in the struggle against illicit 1994, in order to support the Andean Par­ volved in reinforcing international coopera­ ties' efforts to counteract the short- and drugs and his appreciation for the firmness tion in the fight against the production, and the example set by President Barco. He long-term social-economic impact of an ef­ also stressed the courage and the sacrifices trafficking and consumption of illicit drugs. fective fight against illicit drugs. This con­ of the Government, the people, the Armed On behalf of the Government and people tribution by the United States would be Forces and police of Colombia, who, in un­ of Colombia, President Barco expressed made within the framework of actions dertaklng this struggle, merit the solid sup­ thanks for the demonstrations of assistance against drug trafficking carried. out. by port and economic assistance of the interna­ and solidarity, received from the Govern­ Andean Parties. The Andean Parties reiter­ tional community. ment and the people of the United States in ate the importance of implementing or The two Presidents acknowledged the im­ their efforts to combat illicit drug traffick­ strengthening sound economic policies . for portance of maintaining adequate levels of ing, and trusts that cooperation will intensi­ the effective utilization of such a contribu­ economic growth and revitalizing areas af­ fy in various areas. tion. The United· States is also prepared to fected by the production of illicit drugs in cooperate with the Andean Parties in a wide order to help achieve success in combatting ANDEAN SUMMIT, CARTAGENA, COLOMBIA range of initiatives for development, trade narcotics trafficking. To that end, they DECLARATION OF CARTAGENA and investment in order to strengthen and agreed on the need for joint actions on both The Parties consider that a strategy sustain long-term economic growth. a bilateral and multilateral basis. which commits the Parties to implement or Alternative development, designed to re­ The President of the United States ex­ strengthen a comprehensive, intensified place the coca economy in Peru and pressed the willingness of his government to anti-narcotics program must address the and illicit drug trafficking in all the Andean

e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. 3568 EXTENSIONS OF REMARKS March 6, 1990 Parties, includes the following areas of co­ United States is prepared to provide balance tion programs and from bilateral and multi­ operation. In the short term, there is a need of payments support to help meet foreign lateral cooperation agreements to expand to create and/ or to strengthen social emer­ exchange needs. The United States will also efforts in this field. gency programs and economic costs stem­ consider funding for emergency social pro­ To this end, the Parties undertake to con­ ming from substitution. In the medium and grams, such as the successful one in Bolivia, tribute economic, material and technical re­ long term, investment programs and meas­ to provide employment and other opportu­ sources to support such comprehensive pre­ ures will be needed to create the economic nities to the poor directly affected by the vention programs. conditions for definitive substitution of the fight against illicit drugs. 2. Interdiction coca economy in those countries where it 3. Trade Initiatives, Incentives to Exports exists or of that sector of the coca economy A battle against an illicit product must and Private Foreign Investment focus on the demand for, production of and in those countries where it exists or of that An increase in trade and private invest­ sector of the economy affected by narcotics trade in that product. Interdiction of illegal ment is essential to facilitate sustained eco­ drugs, as they move from producer to con­ trafficking. It is necessary to implement nomic growth and to help offset the eco­ programs to preserve the ecological balance. sumer, is essential. The Parties pledge to nomic dislocations resulting from any effec­ step up efforts within their own countries to 1. Alternative Development and Crop tive program against illicit drugs. The Par­ interdict illegal drugs and to increase co­ Substitution ties will work together to increase trade ordination and cooperation among them to In order to foster increased employment among the three Andean countries and the facilitate this fight. The United States is and income opportunities throughout the United States, effectively facilitating access ready to provide increased cooperation in entire productive system and implement or to the United States market and strength­ equipment and training to the law enforce­ enhance a sound economic policy to sustain ening export promotion, including identifi­ ment bodies of the Andean Parties. long-term growth, the United States will cation, development and marketing of new export products. The United States will also 3. Involvement of the Armed Forces of the support measures aimed at stimulating Respective Countries broad-based rural development, promoting consider providing appropriate technical non-traditional exports, and building or re­ and financial assistance to help Andean ag­ The control of illegal trafficking in drugs inforcing productive infrastructure. The ricultural products comply with the admis­ is essentially a law enforcement matter. Parties, in accordance with the respective sion requirements. However, because of its magnitude and the policies of Bolivia, Colombia, Peru and the The Parties may consider the establish­ different aspects involved, and in keeping United States, shall determine the economic ment of economic and investment policies, with the sovereign interest of each State assistance required to ensure sound econom­ as well as legislation and regulations to and its own judicial system, the armed ic policies and sustain alternative develop­ foster private investment. Where favorable forces in each of the countries, within their ment and crop substitution, which in the conditions exist, the United States will fa­ own territory and national jurisdictions, medium term will help replace the income, cilitate private investment in the three may also participate. The Parties may estab­ employment and foreign exchange in the Andean countries, taking into account the lish bilateral and multilateral understand­ countries in which these have been generat­ particular conditions and potential of each. ings for cooperation in accordance with ed by the illegal coca economy. The United B. UNDERSTANDINGS REGARDING ATTACKING their interests, needs and priorities. States is prepared to finance economic ac­ ILLICIT DRUGS 4. Information Sharing and Intelligence tivities of this kind with new and conces­ The Parties reaffirm their will to fight Cooperation sional resources. drug trafficking in a comprehensive manner The Parties commit themselves to a great­ In order to achieve a complete program of attacking all facets of the trade: Production, er exchange of information and intelligence alternative development and crop substitu­ transportation and consumption. Such com­ in order to strengthen action by the compe­ tion, the Parties agree that in addition to prehensive action includes the following: tent agencies. The Parties will pursue bilat­ the cooperation provided by the United Preventive actions to reduce consumption eral and multilateral understandings on in­ States, economic cooperation, as well as and therefore demand. formation and intelligence cooperation, con­ greater incentives to investment and foreign Control and law enforcement activities sistent with their national interests and pri­ trade from other sources, will be needed. agairist illegal cultivation, processing, and orities. The Parties will make concerted efforts to marketing of illicit drugs. obtain the support of multilateral and other Control of essential chemicals for the pro­ 5. Eradication and Discouragement of lllicit economic institutions for these programs, as duction of illegal drugs and the means used Crops the three Andean Parties implement or con­ for their transport. Eradication can play an essential part in tinue sound economic policies and effective Seizure, forfeiture, and sharing of illegal the anti-drug fight of each country. In each programs against drugs. proceeds and property used in committing case, eradication programs have to be care­ The Parties are convinced that a compre­ narcotics-related crimes. fully crafted, measuring their possible effect hensive fight against illicit drug traffic will Coordination of law enforcement agencies, on total illicit drug production in each coun­ disrupt the market for coca and coca deriva­ the military, prosecutors and courts, with­ try; their cost-benefit ratio relative to other tives and will reduce their prices. As success ing the framework of national sovereignty means of fighting illicit drugs; whether they is achieved in this fight, those employed in of each of the Parties. can be most effective as voluntary or com­ growing coca and in its primary processing Actions to bring about a net reduction in pulsory programs or a combination of the will seek alternative sources of income the illegal cultivation of coca. two; and their profitable political and social either by crop substitution or by changing The Parties undertake to engage in an on­ consequences. jobs. The Parties will work together to iden­ going evaluation of their cooperation, so The Parties recognize that to eradicate il­ tify alternative-income activities for exter­ that the President of the United States, as licit crops, the participation of the growers nal financing. The United States is ready to appropriate, may request Congress to pro­ themselves is desirable, adopting measures consider financing of activities such as re­ vide additional assistance to the Andean that will help them obtain legal sources of search, extension, credit and other agricul­ Parties. income. tural support services and support of pri­ Given that the Parties act within a frame­ New economic opportunities, such as pro­ vate-sector initiatives for the creation of work of respect for human rights, they reaf­ grams for alternative development and crop micro-enterprises and agro-industries. firm that nothing would do more to under­ substitution, shall be fostered to help to dis­ The United States will also cooperate with mine the war on drugs than disregard for suade growers from initiating or expanding the Andean Parties to promote viable do­ human rights by participants in the effort. illegal cultivation. Our goal is a sustained mestic and foreign markets to sell the prod­ 1. Prevention and Demand reduction in the total area under illegal cul­ ucts generated by alternative development tivation. and crop substitution programs. The Parties undertake to support develop­ Eradication programs must safeguard ment and expansion of programs in compre­ human health and preserve the ecosystem. 2. Mitigation of the Social and Economic hensive prevention, such as preventive Impact of the Fight Against lllicit Traf­ public education in both rural and urban 6. Control of Financial Assets ficking areas, treatment of drug addicts, and infor­ The Parties agree to identify, trace, As the Andean Parties implement or con­ mation to encourage the public opposition freeze, seize, and apply other legal proce­ tinue to develop effective programs of inter­ to illegal drug production, trade and con­ dures for the disposition of drug crime pro­ diction of the flow of illicit drugs and of sumption. These programs are fundamental ceeds in their respective countries, and to crop eradication, they will need assistance if the drug problem is to be successfully con­ attack financial aspects of the illicit drug of the fast disbursement type to mitigate fronted. trade. In accordance with their respective both small-and large-scale social and eco­ The Parties recognize that prevention ef­ laws, each of the Parties will seek to adopt nomic costs. The Parties will cooperate to forts in the four countries will benefit from measures to define, categorize, and crimina­ identify the type of assistance required. The shared information about successful preven- lize money laundering, as well as to increase March 6, 1990 EXTENSIONS OF REMARKS 3569 efforts to implement current legislation. from the United States to illegal drug traf­ Peru, broader economic cooperation within The Parties agree to establish formulas pro­ fickers in the three Andean countries. the framework of a sound economic policy. viding exceptions to banking secrecy. 10. Legal Cooperation 4. Report to the UN Special Session on 7. Forfeiture and Sharing of lllegal Drug The Parties pledge to cooperate in the lllicit Trafficking in Drugs Proceeds sharing of instrumental evidence in forms The United Nations has recognized that The Parties pledge to implement a system admissible by their judicial proceedings. the problem of drug trafficking presents a for forfeiture and sharing of illegal drug The Parties also agree to seek mechanisms grave threat to the security of the states profits and assets, and to establish effective that permit the exchange of information on and economic stability. It has called for a programs in this area. legislation and judicial decision in order to Global Action Plan and it has convened a In United States cases related to forfeit­ optimize legal proceedings against the traf­ Special Session, February 20-23, 1990, to dis­ ure of property of illegal drug traffickers fic in illicit drugs. cuss the magnitude of this problem. This where Bolivia, Colombia, and Peru provide The Parties recognize the value of inter­ will be a proper occasion to reiterate the assistance to the United States Govern­ national cooperation in strengthening the need to bring into force as quickly as possi­ ment, the Government of the United States administration of justice, including the pro­ ble the UN Convention Against Illicit Traf­ pledges to transfer to the assisting govern­ tection of judges, judicial personnel, and fic in Narcotic Drugs and Pyschotropic Sub­ ment such forfeited property, to the extent other individuals who take part in these stances, which provides for energetic meas­ consistent with United States' laws and reg­ proceedings. ures against illegal drug trafficking, while ulations. The Parties will also seek asset recognizing the ancestral and traditional C. UNDERSTANDINGS REGARDING DIPLOMATIC uses of coca leaf. sharing agreements for Bolivia, Colombia, INITIATIVES AND PUBLIC OPINION and Peru, with other countries. The Parties request that consideration be The scourge of illicit drug trafficking and given during the Special Session to the in­ 8. Control of Essential Chemicals Used in consumption respects no borders, threatens clusion of the cooperative efforts outlined the Production of lllicit Drugs national security, and erodes the economic in this document to develop concrete pro­ The control in the United States of the and social structures of our nations. It is es­ grams for strengthening multilateral re­ export of chemical substances used in the sential to adopt and carry out a comprehen­ sponses to the drug problem, as recommend­ processing of cocaine is vital. In addition, sive strategy to promote full awareness of ed in Resolution No. 44/141 of the United there is a need for greater control of the the destructive effects of illegal production, Nations General Assembly. import and domestic production of such illicit trafficking and the improper con­ sumption of drugs. Toward this end, the 5. Report to the OAS Meeting of Ministers substances by the Andean Parties. Joint ef­ and Cicad forts must be coordinated to eliminate the Parties commit themselves to use all politi­ illicit trade in such substances. cal and economic means within their power The Organization of American States has The Parties agree: to put into effect programs aimed at achiev­ called an Inter-American meeting of Minis­ To step up interdiction of the movements ing this goal. ters responsible for national narcotics pro­ of essential chemicals that have already en­ grams, to be held on April 17-20, 1990 in 1. Strengthening Public Opinion in Favor of Ixtapa, . The Parties urge that the tered the country, legally or illegally, and Intensifying the Fight Against lllegal Drug are being diverted for illicit drug processing. meeting of Ministers and the Inter-Ameri­ Trafficking can Drug Abuse Control Commission This includes controlling choke points as Public awareness should be enhanced also well as establishing investigative and moni­ give priority to the understandings by means of active and determined diplo­ set forth in this document and lend support toring programs in close cooperation with matic action. The Parties pledge to all the Parties' law enforcement agencies. to their early implementation within the strengthen plans for joint programs leading context of regional cooperation against To further develop an internal system to to the exchange of ideas, experiences, and track essential chemicals through sale, drugs. specialists in the field. The Parties call upon 6. Trilateral Meeting resale and distribution to the end user. the international community to intensify a To cooperate bilaterally and multilateral­ program of public information stressing the The parties stress the importance of the ly to provide each other with information danger of drug trafficking in all of its document issued by the Trilateral Meeting necessary to track domestic and internation­ phases. In this regard, the Parties under­ in Madrid and the efforts undertaken in al movements of essential chemicals for the take to give active support to Inter-Ameri­ , particularly the participation of the purpose of controlling their sale and use. can public awareness and demand reduction European Community, with a view to adopt­ To support the efforts under the Organi­ programs, and will support the development ing specific policies and initiatives against il­ zation of American States auspices to of a drug prevention education plan at the licit trafficking of drugs. develop and implement a regional inter­ Inter-American meeting in Quito this year. 7. World Ministerial Summit to Reduce American agreement on essential chemicals. 2. Economic Summit Demand for Drugs and to Combat the Co­ 9. Control of Weapons, Planes, Ships, Explo- caine Threat The 1989 Economic Summit in es­ sives and Communications Equipment The Parties note with satisfaction the Used in lllegal Drug Trafficking tablished a Financial Action Task Force to determine how governments could promote convening of a World Ministerial Summit to Illicit drug trafficking is heavily depend­ cooperation and effective action against the Reduce Demand for Drugs and to Combat ent on weapons, explosives, communications laundering of money gained through illegal the Cocaine Threat, to be held on April 9- equipment, and air, maritime and riverine drug trafficking. 11, 1990 in London. This meeting will serve transportation throughout the illicit culti­ The United States will host the next Eco­ to highlight the role demand reduction vation and the production and distribution nomic Summit on July 9-11, 1990, in Hous­ must play in the international community's process. ton. The United States will use this oppor­ efforts to reduce the trade in illicit drugs The Parties agree: tunity to seek full attention on a priority and will underline the social, economic and To strengthen controls over the move­ basis to the fight against illegal drug traf­ human costs of the trade. The Parties agree ment of illegal weapons and explosives and ficking. to coordinate their actions and future strat­ over the sale, resale and the registration of The Parties call upon the Economic egies in this area with the objective of build­ aircraft and maritime vessels in their re­ Summit member countries, and on the other ing upon this important initiative. spective countries, which should be carried participants in the Financial Action Task 8. Demarches to Transit Countries out by their own authorities. Force, to give greater emphasis to the study Through specialized agencies of the The Parties agree to establish within their of economic measures which may help to United Nations such as the Heads of the Na­ own territory control programs that include: reduce drug trafficking. In particular, the tional Law Enforcement Agencies, our coun­ The registration of ships and aircraft; Parties call upon the Economic Summit tries participate in important coordination The adoption of legal standards that countries to take the steps necessary to efforts. The Parties undertake to strength­ permit effective forfeiture of aircraft and ensure that assets seized from illicit drug en cooperation with transit countries on vessels; trafficking in Bolivia, Colombia and Peru interdiction of traffic in illicit drugs. Controls on pilot licenses and training; are used to finance programs of interdic­ Registration of airfields in their respective 9. World Conference Against lllicit Drug tion, alternative development and preven­ Trafficking countries; and tion in our countries. Development of control measures over In order to progress towards the goals communications equipment used in illegal 3. Multilateral Approaches and agreed upon at the Cartagena Summit, the drug trafficking to the extent permitted by Coordination Parties call for a world conference in 1991 to their respective laws and national interests. The Parties intend to coordinate their ac­ strengthen international cooperation in the The United States agrees to work with the tions in multilateral economic institutions elimination of improper consumption, ille­ Andean Parties to stem weapons exports in order to ensure for Bolivia, Colombia and gal trafficking and production of drugs. 3570 EXTENSIONS OF REMARKS March 6, 1990 1 o. Follow-up Meeting to the Cartagena ropean conservative tradition in foreign our withdrawal from Cambodia, the sudden Summit policy, with its emphasis on balance and multiplication of Marxist regimes in all In order to follow up on progress of agree­ order, liberal commentators were moved by parts of the Third World-many Americans ments arising under the foregoing under­ a sensation of danger impending from a could not witness these events without the standings, the Parties agree to hold a high massive convulsion within the Kremlin's sense of a failed mission to save the world level follow-up meeting within a period of sphere of influence or the Soviet Union for freedom. And when on top of military not more than six months. itself. defeat, the collapse of client regimes, and At no point evincing signs of a reflective the evident loss of industrial supremacy, the bent, Bush has found success in public life Soviet Union appeared to acquire, through BUSH'S CHOICE by propitiating right-wing icons and plod­ the relentless deployment of additional ding inconspicuously behind the brute force weapons and the invasion of Afghanistan, of events. But let us assume for the sake of the means to strike at the Persian Gulf and HON. BILL RICHARDSON argument that the grinding shift of plates to neutralise our strategic deterrent, the OF beneath the surface of the post-war world fear of being owned was ripe for arousing. IN THE HOUSE OF REPRESENTATIVES moves the President to envisage bold depar­ Reagan was swept to power by a rip tide tures in national policy-towards reconcilia­ of strategic pessimism. For a moment, it Tuesday, March 6, 1990 tion with the Soviet Union, and an intensi­ seemed capable of dragging American for­ Mr. RICHARDSON. Mr. Speaker, the world fied collaboration with traditional allies. eign policy into the sort of perilous waters is presently going through a period of volatile Could he act on the basis of such an epipha­ that would normally be chanced only by a and momentous change. As nations and politi­ ny. or would he be confined by electoral profoundly dissatisfied or ideologically cal and economic alliances are redrawn, constraints rooted in the national charac­ crazed country. The US was hardly the ter? latter, and being pre-eminent in influence expert analysis of these changes is of tremen­ Investigating the American character is a (despite the decline in its relative power), dous value. Prof. Tom Farer has published a line of work extending back at least to de affluent, cohesive, and more dependent fine article in the "London Review of Books" Tocqueville. Rupert Wilkinson's book, The than ever on the pacific environment requi­ analyzing these changes and the Bush admin­ Pursuit of the American Character, is one of site for a smoothly functioning global econ­ istration's reaction to them. its more useful contemporary products. The omy, it had ample reason for satisfaction Professor Farer has served as president of book aims to give a fresh perspective on the with the fundamental norms of internation­ the University of 'New Mexico and the Inter­ tensions between individualism, community al order. That may well be the main reason American Commission on Human Rights. He and conformity. It focuses on "four historic why the moment passed without producing American fears that have surrounded the disaster. I suppose, however, that one is presently on the faculty of the American dual attraction of Americans to individual­ should not altogether discount the reassur­ University here in Washington. Professor ism and "getting together": the fear of ing Reagan persona, the tranquillising Farer's article places the tremendous changes being owned ; and the fear of falling away from a the contrary, of a Soviet challenge in the BUSH'S CHOICE past virtue and promise". Only occasionally. Gulf, in Europe, or anywhere else. Wilkinson concludes, can public policy be For whatever reason, the country had re­ In the early months of George Bush's reduced to a confluence of these fears. This captured its normal if slightly brittle opti­ Presidency, before his reassuringly innocu­ is so for two reasons. First, the fears often mism by the time Reagan met Gorbachev, ous pronouncements and prudent compro­ pull against each other: policies apparently pronounced him authentic, and declared a mises at the NATO summit had allowed the responsive to one will aggravate concerns new era in Soviet-American relations, there­ American media to discover prophetic quali­ generated by another. Secondly, the practi­ by reinforcing the collective sense of a ties in him, editorial pages were much occu­ cal implications of each fear are in most nation restored. As the heir to this wealth pied by pundits clashing over what Bush, cases sufficiently ambiguous to permit its of renewed confidence about America's do­ during the electoral campaign, had plain­ invocation on behalf of inconsistent policies. mestic health and global role, Bush enjoys tively labelled "the vision thing". Despite But at all times they infest the symbolic en­ unusual freedom. Whether he jogs along, the country's considerable domestic difficul­ vironment in which policy is formed. Hence, marginally adjusting policy as events dic­ ties-some of which are on daily display in on all occasions, an American attempting to tate, or innovates boldly, he is likely to violent, drug-drenched streets within jog­ marshal support for a policy, or a foreigner retain broad public support. ging distance of the White House-the attempting to influence American policy If parts of the edifice of international re­ President's critics were aroused primarily by process, must employ language that pays lations built after World War Two appear an alleged absence of vision about an exteri­ them homage. At rare moments, rather vulnerable, the remainder seems stronger or world whose familiar contours were melt­ than simply providing broad parameters than ever. As principal architect, the United ing into odd and unsettling forms. and a distinctive language for discourse States designed a structure of international United in demanding vision, they were di­ about foreign policy, they can coalesce to relations that would foster a global econo­ vided over its substance. The militant right, dictate its content. my governed by free markets enforcing the which often sounds distressingly like Alces­ The end of the 1970s was such a moment. law of comparative advantage. The first tis Dubois's definition of fascism-"bayonets , a man with few peers at condition of such an economy is the exist­ in search of an idea" -indicted the Presi­ personifying and manipulating the key sym­ ence of societies willing to exchange the dent for failing to insulate the West from bols of American political life, seized on it. risks of comparative advantage for its pre­ the narcotic of Gorbachev. Declarations, For fifteen years history had been conspir­ dicted gains and living in a state of internal however hedged, implying that the Cold ing to give him the chance. Fear of falling and external peace, a state plainly welcome War is over were seen as evidence of a deep­ apart? Only a Pangloss could have lived to the war-weary Western allies. The ening addiction. The most benign conse­ through the social convulsions and assassi­ GATT, the IMF and the World Bank were quence of collective stupefaction, it was im­ nations of the Vietnam War years, and the established to encourage acceptance of plied, would be a lost opportunity to bury longer-running disintegration of social those risks. Force was banned for any pur­ the Soviet threat. A less optimistic scenario mores, without beginning to doubt that the pose other than as a last recourse against had the Soviets achieving, at a time of maxi­ centre could hold. Fear of winding down? aggression. The classic means for legislating mum weakness, their greatest triumph: the The prolonged humiliation of the Tehran change in the relations of states was there­ collapse or emasculation of NATO. hostage crisis, following so quickly the utter fore gone. Critics from the left also bewailed the pro­ defeat of American purposes in Vietnam Today, with China already inside and the spective loss of opportunity. The one to and experienced against the backdrop of ap­ other great post-war autark, the Soviet which they referred, however, was the de­ parently successful Soviet interventions in Union, sueing for entry, and with South­ mocratisation of Soviet politics and a con­ . the Third World, signaled a stunning plunge east Asia providing a cluster of dynamic new comitant negotiated settlement of the Cold from the apogee of world power. Fear of participants, the economic structure is argu­ War. But it was not only rosy visions that falling away? The tens of thousands of our ably stronger and more stable than at any fueled their antagonism to Bush's deliberate Vietnamese collaborators rotting in Hanoi's previous moment in post-war history. But pace and prose. Like those establishment re-education camps and drowning in their just as the system is becoming truly inclu­ figures, epitomised by , who efforts to escape, the killing fields assem­ sive, anxiety about disintegration has sur­ are the self-conscious heirs of the Anglo-Eu- bled by the Khmer Rouge in the wake of faced in respectable foreign policy discourse. March 6, 1990 EXTENSIONS OF REMARKS 3571 We are moving, some experts claim, toward far from clear. In the first place, one cannot The potentially sizeable opportunity costs rival trading blocs led, respectively, by the predict how much the division would add to that would accrue from the failure to main­ West Europeans (primarily the Federal Re­ existing trade restraints. Protectionism is a tain, much less expand, an open global public of Germany), the Japanese and the political decision, not a force of nature. The system are reason enough for an American United States, with the latter forced to or­ formation of blocs might do nothing more President to question a largely reactive ganise a trading sphere out of the bits and than force a moderate increase in the global policy of marginal adjustments. But more pieces rejected by its competitors. deviation from that optimum production of ominous than the notional loss of goods and The motive force for this glide away from goods and services presumed to result from services is the inevitably associated loss of globalism is seen to come from at least three unlimited . Theoretically, such an political cooperation-an element which is sources. One is the expansion and accelerat­ increase would occur if the value of inter­ already insufficient to cope with multiply­ ing integration of a European common bloc trade restrained was somewhat greater ing threats to the security of nations. market with the strength and self-confi­ than that of intra-bloc trade unleashed. But As the electoral strides of the Green Par­ dence needed to protect inefficient but po­ whatever the aggregate consequences of dis­ ties demonstrate, the ecological threats litically significant sectors of its economy. A integration into blocs, the United States is have finally begun to bore deeply into mass second is the declining capacity of the likely to experience the largest relative consciousness. Collectively we are poisoning United States to resist centrifugal forces losses and fewest gains, above all in the cur­ the water and air, levelling the forests, dissi­ within the circle of advanced capitalist de­ rency of political influence, among the pow­ pating the soil, raising the temperature, mocracies. For domestic reasons both politi­ erful nations concerned. spreading the deserts, depleting the ozone, cal and economic, it is progressively less able With whom will America bond other than and just plain shifting the whole balance of to bear the disproportionate material costs its immediate neighbours? Even after it associated with its hegemonic role within nature. Through their acts and omissions, achieves equilibrium in its balance of pay­ governments all over the globe commit the Western alliance. It has perforce ments, it will not have the huge quantities become intolerant of free riders on its secu­ crimes against the Earth. The consequences of surplus value capital which Japan will be of those crimes ooze inexorably across na­ rity investments and of less than full reci­ able to deploy. That is one reason why both procity insofar as it practises free trade. tional frontiers. Some governments cannot China and the Soviet Union are likely to stop because they are inept. They need ex­ Japan is the third. The MIT economist Ru­ gravitate into Japan's orbit. A second is diger Dornbusch appears to be arguing in a pertise or trustees. Others will not stop be­ what appears to be the greater ability of cause they are delinquent. They need sanc­ recent piece that the problem is not so public and private actors in Japan to identi­ much its government's policies as its acts of tions. Others again do not stop because the fy, and collectively to pursue national eco­ immediate political and economic costs omission which express the very character nomic objectives: public and private elited in of the place. Japan is structurally neo-mer­ threaten their survival. They need contin­ Japan are more compact and homogeneous; gent rewards and sanctions too. Many wait cantilist. That is to say, the forms of its po­ their relations are marked by mutual re­ litical and economic life, together with its for others because acting alone is both spect; their cooperation is not haunted by costly and inconsequential. They need com­ mentality, preclude for the foreseeable the distrust of government and the visceral future anything like the level of imports re­ pany. individualism that are so much a part of the We lack relevant processes, institutions quired to offset the enormous value of its American character. exports. Today much of the resulting sur­ Japan Inc. will not rely on the drift of and norms, not to mention an inherited dis­ plus capital is productively employed in accumulating events. It will actively court the Marxist threats, deploy assistance, allocate funds, foreign assets such as factories, real estate giants with offers uninhibited by balance­ and to impose sanctions. Brazil consumes its and raw materials, but the principal part sheet anxieties. Strategic consideration forests; the world wails; the World Bank goes towards financing the American budg­ should enhance their receptivity. A militari­ ly powerful state will normally prefer eco­ lends the means for consuming them faster; etary and trade deficits. the forests continue to shrink. That is the Although American consumers have nomic dependence on a comparatively weak one. This strategic factor, coupled with the status quo. found this arrangement comfortable, the Irreversible ecological damage will kill us American elite is conspicuously uneasy proximity of major decision centres, might alternatively draw Moscow into close asso­ slowly while progressively depressing the about the country's growing subjection to standard of living. Emerging strategic devel­ the investment decisions of Japanese lend­ ciation with the EEC, which is, in any event, likely to incorporate most of Eastern opments presage conflicts that will kill lots ers. The number of blue and white-collar of people quickly while battering global employees who believe they have been in­ Europe. The relative weight and cohesion of each GNP and doing their own bit for ecological jured by Japanese competition, or who are degeneration. Within the next ten years at for less material reasons receptive to nation­ Bloc would affect the terms of trade it could negotiate with the other two. Negotiations least two dozen countries will have the alist appeals, provides a popular base for an means to make nuclear weapons. The weap­ elite-led drive to restore equilibrium which could also be affected by the political envi­ ronment in which they would be conducted. ons themselves are spreading. Missiles capa­ is likely to accelerate with the next down­ ble of delivering them at great distances are swing in the economic cycle. If, one is The environment for negotiations between an Asian bloc led by Japan and one domi­ spreading faster. Virulent chemical weapons tempted to say when, the US gets its ac­ seem accessible to any state with money or counts in balance, and if the Japanese polit­ nated by the United States promises to be poisonous. Aside from the fact that a defin­ a half-way developed scientific-industrial ical system still will not produce the unprec­ base. Meanwhile the norms governing the edented measures required to induce a ing characteristic of each bloc would be skin sharp increase in domestic consumption of colour-a less than propitious element in use of force and protecting the independ­ foreign goods and services, Japanese capital the diplomatic mix-both sides will feel ence and integrity of states have lost at will have to find huge new outlets. sorely aggrieved. By hypothesis, the Japa­ least some of the clarity and authority they Europe, Dornsbusch argues, will still not nese decided to concentrate on organizing enjoyed when first incorporated in the need and Latin America will not be able to an Asian bloc because of rebuffs to Japa­ United Nations Charter. afford to borrow more than a fraction of nese goods and capital in Washington to less During the past fifteen years Indonesia the Japanese surplus. The first alternative, than Brussels. As for the United States, it has invaded East Timar, Vietnam has invad­ then, will be direct investment. In Europe will find itself negotiating to retain some ed Cambodia, Israel invaded Lebanon, Iraq and North America, however, this option part of what .it won with bloc and treasure has invaded Iran, Morocco has invaded the will be constrained by political forces deter­ in World War Two: an unrestricted Asian Western Sahara, India has invaded Sri mined to limit foreign ownership of land presence. For a country which has imagined Lanka, and South Africa has invaded who­ and other productive resources. Rebuffed by itself throughout the 20th century to have ever in the region it was disposed to invade. its erstwhile allies, according to this hypoth­ an Asian vocation, the very need to negoti­ Events confirmed their evident conviction esis, the Japanese will summon their capital ate will be a source of rage. Mutual resent­ that they would not be punished. The su­ and political energy to build an Asian trade ments will implicate negotiations on purely perpowers, by their interventions in the and finance zone, a move likely to be facili­ economic issues, in part by investing them name, respectively, of scientific socialism tated by the limits imposed by Europe and with torrid symbolic values. The severity of and democracy, have contributed to the the United States on the exports of all those negotiations could in turn shadow the view, rejected at Nuremberg but manifested Asian countries. In addition or alternatively, prospect for cooperation on other matters. in the actions of these powers, that every the Japanese might decide to mate their History, being sloppy, will probably not state is the exclusive judge of the measures money, technology and capital goods to the allow anything nearly so neat as three-bloc required for its security. Preoccupied with natural resources and untapped markets of world. But the centrifugal forces identified the Cold War, avid in the cultivation of cli­ the Soviet Union. by Dornbusch and others could certainly ents, the Soviet Union and the United In fact, the economic consequences of the produce a more fragmented and less open States have sheltered instead of disciplining world's division into three trading blocs are international economy than we have today. norm-busting nations. 3572 EXTENSIONS OF REMARKS March 6, 1990 Since it is strategically secure, and de­ tensions, or inspire economic discipline and Bush's decision to inauguarate this proc­ pendent for its affluence and therefore its initiative, solely through accelerated de­ ess would be one important measure of the domestic harmony on the smooth operation regulation and enhanced political participa­ man. A second would be a decision to advo­ of the international market economy, the tion. Necessary as those steps are, they are cate systematic consultation among the G-7 United States has ample incentive to help not sufficient. Exhaustion and cynicism are and the Soviet Union on the full slate of restrain inter-state violence. The impera­ running high. The Soviet people needs to international issues. To that end, the G-7 tives of perestroika, or perhaps one should experience now the taste of the promised could expand the agenda of the proposed say the political and economic imperatives fruit. Over the longer term, Gorbachev's summit and urge that it be an annual event. that have produced perestroika, have led reform should enhance consumption. In the Twenty years ago agreement between the Soviet leaders to see more clearly than ever shorter term, the conflict and confusion as­ G-7 and the Soviet Union on almost any before that international anarchy does not sociated with the transition seem to have issue would have been decisive for the re­ serve their interests either. produced further deterioration in living mainder. of the international community. In a world of competitive states and trans­ standards for some and greater frustration The subsequent diffusion of power has national loyalties-particularly those stem­ for almost all. made other states, or blocs of states, neces­ ming from race and ethnicity-the fuse of Making perestroika work may well be as sary parties to effective decisions on many interstate conflict will often be lit by events important to the interests of the United issues. While Bush and his colleagues within states: wars, coups, insurgencies, States as the restoration of Europe was should visualize a broad and regular consul­ massacres. For that reason the great powers after World War Two. One response to that tation with Moscow as a way of sealing the have a material interest in fostering the imperative was the Marshall Plan, which end of the Cold War, it should also be seen peaceful resolution of internal disputes. As made financial adjustments and outlays as an immense step toward global co-oper­ it becomes a more plural and open society, a play the dual role of supporting reconstruc­ ation. To further this aim, the first summit society more dependent on the uninterrupt­ tion and of inducing a habit of consultation would establish a planning group authorised ed movement of people and goods across and collaboration among the nations of to create support among other states for frontiers, the Soviet Union's stake in re­ Western Europe, and between these nations converting the Security Council into an in­ pressing international terrorism and the and the United States. The plan's rapid im­ stitution able to identify risks to widely movement of illicit goods-narcotics, materi­ plementation eased social tensions in West­ shared interests and to adopt and imple­ als for manufacturing weapons of mass de­ ern European countries, re-invigorated their ment decisions. The conversion would in­ struction, art treasures, nuclear and other economies and imparted a momentum to volve adding Japan and the Federal Repub­ toxic wastes-will increasingly approximate international relations which culminated in lic as permanent members and expanding to that of the United States and its tradi­ the institutions of co-operation which domi­ the Council's authority to include all serious tional allies. The growth of environmental nate the current scene. threats to human welfare. consciousness in the Soviet Union, coupled In his letter to the G-7 Heads of State, If the past is prologue, Bush will go on with the growing exposure of decision­ Gorbachev announced the readiness of the drifting with the current of events, steering makers to popular pressure, is establishing Soviet Union to become an active partici­ to avoid a shoal here and there, husbanding another point of convergence between the pant in global economic affairs. The mem­ his stores, exhorting his crew, defending his concerns of its elites and those of our own. bers of the Group of Seven should respond flag, all the while hoping to arrive at an This happy conjuncture of interests (and by proposing discussions among Soviet and agreeable place, but unwilling to raise sail in the inception thereof) between the two G-7 officials about means for increasing the favouring wind and plot his own way. great protagonists of the Cold War cries out economic interaction. Each of the G-7 party And yet, as he himself concedes, an extraor­ for institutional expression designed to leaders should designate a prestigious dinary and fragile process of change is oc­ avert misunderstandings, to concert policy figure, backed by a small staff of experts curring in the Soviet Union, which the and to strengthen within each country the from government, research centres, acade­ United States is in a position to support. It advocates of co-operation. But although the mia and the private sector, to conduct those is also in a position to attempt to determine US and the USSR are necessary partici­ discussions. The designee would report di­ a future in which the governing systems of pants in any collective effort to address the rectly to his president or prime minister. In the world may be able to act collectively in central risks to security, they are not suffi­ proposing discussions, the G-7 should have relation to the changes they share. No cient. In order to contain the destructive several immediate objectives. One is to iden­ President since Truman, possibly since and centrifugal forces at work in the world, tify the scale of credits required to give Gor­ Franklin Roosevelt, has faced an environ­ all of the leading states must be drawn to a bachev breathing space and leverage. A ment so full of promise and peril. Bush's structure that will invest them with the second is to assist Soviet experts in planning acts and omissions will soon settle the ques­ prestige and power, and the constraints and the integration of foreign investment into tion of whether the American people have responsibilities, of system managers. the transition toward a relatively open econ­ elected a man, if not for all seasons, then at Bush has not responded to this cry, and omy. A third is to strengthen personal and least for this one. · will not as long as he imagines that policy institutional links between important seg­ consists only of incremental adjustment ments of the Soviet bureaucracy and their and, when adjustment fails, of crisis man­ G-7 counterparts. And a fourth is to deepen WE NEED A PUBLIC SOLUTION agement. Through the excess of caution, or those links among the Group of Seven. On TO LONG-TERM CARE an insufficiency of imagination, he has ig­ the basis of proposals developed by the par­ nored this opportunity, just as he has ticipants in this exercise, the relevant G-7 lagged thus far in confronting the fact that cabinet members, working closely with busi­ HON. WILLIAM LEHMAN reform of the Soviet system will explode in ness and financial pashas (and in the United OF the hands of its practitioners, in such a way States with Congressional luminaries), as to restore-with heightened inflama­ should assemble export credits and invest­ IN THE HOUSE OF REPRESENTATIVES tion-the condition of cold war. ment guarantees sufficient in scale to fur­ Tuesday, March 6, 1990 By getting aid for Poland and Hungary to nish Gorbachev with the means for tangibly the top of the agenda at the recent econom­ improving the condition of Soviet consum­ Mr. LEHMAN of Florida. Mr. Speaker, in ic summit of the Group of Seven, and by ers. They should also agree on institutional February, I met in my district office with a committing the United States to contribute arrangements for collective allocation of the group of constituents who are concerned $119 million, Bush made a beginning. But credits and guarantees so that the allies about the affordability of long-term health the risk is greatest in the Soviet Union move as one to reinforce positive develop­ care. itself, where the authority of the regime is ments in the Soviet transition. Their organization is called the National unravelling at a stunning pace. If Stalin Since the Japanese have most of the spare Long-Term Care Campaign, which is very were in power, that would be marvellous, be­ capital required to finance Soviet imports. cause any alternative would be superior. Japan should chair the group of experts, active locally as well as on the national level. With Gorbachev in power, it is distressing, the ministerial consultation, and the co-or­ Since Congress will be reviewing various because the most likely alternative is a reac­ dinating mechanism. And the Japanese long-term health care proposals, I would like tionary government ruling by terror. And if, Prime Minister should co-chair the summit, very much to share with my colleagues part of to save themselves, Gorbachev and his col­ with President Gorbachev required to nego­ the position paper from this organization. leagues yielded to pressure for the imposi­ tiate the precise arrangements and under­ tion of martial law, they, too, would end up standings that would commit the capitalist WE NEED A PuBLIC SOLUTION TO LONG-TERM ruling by the knout. After glasnost, any­ democracies to helping perestroika succeed. CARE thing like the old order of things will not be As things stand now, however, it is the

March 6, 1990 EXTENSIONS OF REMARKS 3581 Warsaw Pact were rising up to demand basic embodiment of the anti-Somoza revolution. CASTRO'S NIGHTMARE freedoms and human rights. The Sandinistas turned out to be Leninists (By ) By last Sunday, the tide of democracy was who, far from embodying the revolution, hi­ jacked it. Violeta Chamorro, who beat them Nothing is what it used to be for Fidel invincible. Consider this, ladies and gentle­ Sunday, was part of the first revolutionary Castro. His faithful allies-Maurice Bishop man. The Sandinistas, depsite their harass­ junta. Within a year, the Sandinistas had in Grenada, Manuel Noriega in Panama and ment, threats, and intimidation, despite their pushed her and other democrats out. now Daniel Ortega in Nicaragua-have control of all government institutions, were The Western elites got it wrong again passed from power. The very foundations of beaten by a margin of nearly 15 percent. during the 1980s when they dismissed the the world socialist bloc have crumbled. As George Bush beat Governor Dukakis by contras as a gang of Somocista, CIA hire­ he complained to the Congress of Cuba's only 8 percent, which in American term is a lings. Archbishop Obando y Bravo called Working People: "Whereas previously it was landslide. Think of how badly the Sandinistas them "the resistance." But when Ronald customary to hear the word 'comrade' at meetings of the socialist countries . . . now would have been beaten it they had allowed Reagan called them "freedom fighters," the cognoscenti snickered. They never ade­ they say 'ladies and gentlemen.' absentee ballots to all exiles, who totaled quately explained how such an army could "The building of capitalism has become about 15 percent of the population. raise 20,000 men, a force more than twice the openly declared goal of some of these Mr. Speaker, too many in this body dis­ the size of the Salvadoran guerrillas in a countries," he continued. "There is already missed the Contras as unrepentant Somocis­ country with half the population. Nor could talk of the market, private ownership, a tas, despite the fact Somoza's National Guard they adequately explain how until U.S. aid market economy. Anti-Communist senti­ never numbered more than 10,000 men, was cut off in February 1988 the contras ments are gaining strength in almost all whereas there were 15,000 Contras in the had control of most of northern Nicaragua. these countries.;, He was speaking, of field, most :Jf whom could not have been The media got it wrong again this time, course. of Eastern Europe and was sharing more than toddlers when Somoza was top­ believing polls showing the Sandinistas in his concerns with "the masses." Where will the lead. In a Communist dictatorship all these reforins leave Cuba? he asked. "We pled and his national guard decimated. But it where the party controls your job and your hope that certain trade agreements will be was the heat of the Contras, and not the good ration card, people are not inclined to reveal fulfilled in 1990. . . . Nevertheless we are will of the Sandinistas, that made Sunday's tri­ to strangers their political allegiances. They not sure of this. . . . What price will they mumph possible, and it is time the Sandinista save that for the secret ballot. When I saw pay for our sugar? Perhaps they will try to defenders in this body admit it. the last pre-election poll showing the Sandi­ pay for it at the price of the international Mr. Speaker, I place in today's RECORD two nistas ahead by only 16 points, I was as sure garbage pit which is the world sugar excellent columns on the subject by Charles as UNO leader Alfredo Cesar was that UNO market.'' Krauthammer and Jeane Kirkpatrick, which was going to win. In a dictatorship that For 30 years, Fidel Castro had no doubt appeared in Tuesday's Washington Post. might still be in power the day after an elec­ that the economic and social probleins of tion, far more than 16 percent of people will Cuba and the world were due to imperialism ON THE WRONG SIDE OF HISTORY, AGAIN out of sheer prudence mislead a gringo poll­ and imperialist exploitation, the principal

39-059 0-91-17 (Pt. 3) 3582 EXTENSIONS OF REMARKS March 6, 1990 nomic problems: "Adverse weather" (to recent unprecedented turn of world events, hardly problems but that, if allowed to which socialist agriculture is so uniquely we will miss a unique opportunity to right our fester decade after decade, become disasters. prone) has reduced the sugar cane harvest; Nation's course. My apprehension was height­ America's investment, trade and education the slow pace of construction in Cuba has deficits all fall into this "festering disaster" hampered work on needed dock facilities; ened during a recent inspection of Eastern category. Consider how each of these defi­ archaic equipment at Cuban ports and Europe when I saw what can become of an cits plays out in the short run-and then in chronic scarcity of transportation and ware­ economy that is allowed to stagnate and rot. the long run: house facilities have forced Soviet ships to I am in the process of drafting a compre­ If Japan saves and invests three times as dock for long periods. hensive economic development program to much as we do per employee for one year Soviet spokesmen flatly deny that the eco­ deal with many of the problems cited by Dr. , that extra equipment nomic pressure felt in Cuba is a tactic de­ Thurow. My proposal, which I call the Peace doesn't give the Japanese worker much of signed to force Castro to reconsider his op­ an edge in world markets. But if Japan out­ position to Mikhail Gorbachev's leadership. Production Board, is modeled after the War invests America decade after decade , we would have or would not buy long-term Treasury bonds reached German levels of savings (but HON. PAUL E. KANJORSKI on Thursday. Great societies don't depend would still be below Japanese levels). OF PENNSYLVANIA upon foreigners to pay their bills. They That extra saving from less consumption IN THE HOUSE OF REPRESENTATIVES don't sit around waiting to see if their chain would allow us to correct our balance of is going to be yanked. It is sad to watch the payments problem. We wouldn't have to sell Tuesday, March 6, 1990 momentous events occurring in Eastern American assets such as Rockefeller Center Mr. KANJORSKI. Mr. Speaker, Dr. Lester Europe knowing that we cannot help with to finance a consumption standard of living aid or investment since we have to borrow that is in excess of our ability to produce. Thurow, dean of MIT's Alfred P. Sloan School from the rest of the world to keep invest­ Similarly, correcting our education deficit of Management ha~ written a thoughtful and ment from falling here at home. What would require more days in school and more incisive analysis of our nation's economic would John Foster Dulles have been willing focused work effort while there. Either problems. His article, "Today: We're Not to pay to guarantee democracy in Poland? would make schools better and more fun in Facing Up To Our Nation's Problems . ..", Yet, despite these humiliations, we stay the long run but both would be seen as an which appeared in the Outlook section of the adrift, unable even to admit that we have to immediate reduction in youthful leisure and Washington Post, is an effort to rouse us from change if we want to play a leading role on standard U.S. operating procedures. our sleep so that we can take the steps which the world stage. Our lack of direction seems Gearing up for these sacrifices, modest the more embarrassing in that the changes though they are, will not so much require are necessary to revitalize our economy. we have to make to get back in control of convincing the public that changes are Dr. Thurow's prescription for our ills is our social and economic destiny are, in fact, needed as educating them to the fact that strong, but so too is the disease which is rather modest. Indeed, the seeming modesty collective responses are called for. Recent eating away the heart of our economy. of our challenges may be why we seem polling by the Public Agenda Foundation, Dr. Thurow tells us that our Nation has a unable to mount a collective response. among others, finds that the public is al­ "good track record when it comes to dealing Our democracy has a good track record ready deeply worried about our lack of com­ with crises. Give us a Pearl Harbor or a sput­ when it comes to dealing with crises. Give petitiveness. But most people see the source nik and we will get organized to march collec­ us a Pearl Harbor or a Sputnik and we will of their problems not in three collectively get organized to march collectively in the curable deficits but in individual moral fail­ tively in the necessary direction." Thus he be­ necessary direction. All societies that have ings-lack of motivation and work effort, lieves we do have the ability to draw upon our made it to the top have had that ability. drug use, etc. reserves and redirect our nation. But staying at the top requires something No doubt individual initiative can contrib­ For several months I have shared Dr. Thur­ more: the ability to deal with situations ute importantly to reducing economic and ow's concern that if we do not seize upon the that, if viewed in any one single year, are social ills, but our most serious problems are March 6, 1990 EXTENSIONS OF REMARKS 3583 caused not by individual moral failings but mechanisms for promoting exports, such as The research and development our bill by collective organizational shortcomings. those found in Germany and Japan, and for would provide is necessary to determine the Short-run sacrifices are necessary to pre­ reducing the attractiveness of off-shore pro­ future effectiveness of any new Clean Air Act serve the American long-term standard of duction bases for servicing the U.S. market. living, but there is nothing morally wrong And, of course, a better educated and skilled in reducing air pollution. Most of the current with America. labor force would ultimately help alleviate provisions for research and development in The public also believes that less con­ our trading problems. the Clean Air Act were developed over a sumption and more saving would lead to un­ When it comes to education, liberals and decade ago, when problems like acid rain or employment. But we wouldn't just be con­ conservatives, each have part of the answer. air toxics were little more than obscure scien­ suming less. We would also be investing Discipline needs to be restored, and school tific phenomena. Today's air pollution prob­ more. Fewer jobs in our consumption indus­ bureaucracies are much too large. But it is lems are much more complicated-they range tries would be matched by more jobs in our equally true that at current salary scales investment industries, upgrading our capac­ one cannot get many first-rate people into from indoor air quality to global warming, and ity to produce. teaching-and that America ranks near the include air toxics, ozone nonattainment, acid But the necessary changes won't happen bottom of industrialized nations in its rain, ozone depletion, and radon. In order to because of spontaneous combustion. spending on elementary and secondary edu­ be able to evaluate the effectiveness of new Humans like to lie to themselves. We all say cation. Few American high schools have Clean Air Act controls in fighting air pollution that we like to change, that we keep our eye trained science teachers. At current wage problems such as these, we must refocus and on the long run. But when it comes to actu- ' rates they never will. update our research efforts to support a regu­ ally taking actions today that will improve It does not take a wise man to understand our position tomorrow, we don't want to do that if Americans go to school 180 days per latory program. Passage of the Clean Air Re­ it. We have to be organized, to be led. In­ year while the rest of the industrial world is search Amendments will be an essential part stead we are being soothed. in school 220 to 250 days per year, Ameri­ of such an effort. Near the beginning of his State of the cans won't learn as much. Nor can a country Given the legislation's emphasis on sound Union speech, President Bush asserted that turn out a high-quality high school product air pollution monitoring and health effects, its the U.S. worker was the "most productive in unless it is willing to set a quality standard. passage will also be important to future pollu­ the world." But a country with the world's The French have their baccalaureate exami­ tion prevention efforts. Clearly, the health and most productive workers wouldn't have the nation, the English their A and 0 levels, the environmental issues surrounding air pollution world's largest trade deficit and the indus­ Japanese their examination system, the trial world's lowest rate of growth of pro­ Germans theirs. If a society won't clearly are complicated. By improving scientists' un­ ductivity. It wouldn't be losing market share say what it wants from its schools, it won't derstanding of the cumulative, adverse effects in industry after industry-consumer elec­ get any clear performance. of air pollutants on public health and the well­ tronics, machine tools, autos, semi-conduc­ If you have been the world's most success­ being of ecological systems, our bill will help tor chips, computers. The real wages of non­ ful economy

March 6, 1990 EXTENSIONS OF REMARKS 3597 termining a controlled country and report 203. Allows Bulgaria, Czechoslovakia, East SEC. 105. TRADE SHOWS. to Congress his recommendations for Germany, and Romania to be eligible for Section 5<6> of the Export Administra­ change. OPIC. tion Act of 1979 (50 U.S.C. App. 2404Ce){6)) 102. China "greenline" level can be ex­ 204. Allows Eximbank financing for is amended- ported to Eastern Europe. projects in Bulgaria, Czechoslovakia, East <1) by striking "the People's Republic of 103. The President can identify non-mili­ Germany and Romania. China" the first place it appears and insert­ tary sectors that would help economic H.R.- ing "any country"; reform in the Soviet Union and in­ mental protection>. Technology in these sec­ Representatives of the United States of serting "such country"; and tors would then be eligible for export at America in Congress assembled, (3) by adding at the end the following: SECTION 1. SHORT TITLE. levels higher than currently allowed. "This paragraph does not apply in the case 104. Permits bulk licensing for Eastern This Act may be cited as the "Export En­ hancement Act of 1990". of a trade show in the Soviet Union to su­ Europe, to make it easier for exporters to percomputers, goods or technology for sen­ send numerous shipments of the same item TITLE I-EXPORT ADMINISTRATION ACT sitive nuclear uses (as defined by the Secre­ to pre-approved end users. SEC. 101. CONTROLLED COUNTRIES. tary), or devices for surreptitious intercep­ 105. Allows items to be exported for trade tion of wire or oral communications.". shows that would not otherwise be exporta­ (a) IN GENERAL.-In light of the rapidly ble, so long as certain conditions are met. changing strategic environment, the Presi­ SEC. 106. EXPORTS TO COCOM. 106. Mandates that within one year of en­ dent shall- (a) IN GENERAL.-Section 5Ca)(4) of the actment, no validated licenses may be re­ <1) assess the current list of controlled Export Administration Act of 1979 <50 quired for exports to COCOM or countries countries and determine whether the list re­ U.S.C. App. 2404<4» is amended to read with which we have an agreement to abide mains appropriate; and as follows: by COCOM policy <5 countries). No reex­ <2) review the criteria contained in section "(4) Effective on and after the expiration port controls among COCOM nations. 5(b)(l) of the Export Administration Act of of 1 year after the date of enactment of this 107. Gives Commerce sole authority to de­ 1979. paragraph, a validated license is not re­ termine what is controlled under this Act (b) REPORTs.-Not later than 3 months quired for any export to or reexport to or C2) 1979 <50 U.S.C. Ap. 2404<2> is repealed. it must be sent to the President. He then and recommend any changes he deems ap­ SEC. 107. DUAL USE ITEMS. has 20 days to make a determination, and if propriate. Section 17 of the Export Administation no action is taken, Commerce's ruling SEC. 102. EXPORTS TO EASTERN EUROPE. Act of 1979 (50 U.S.C. App. 2416Cb)) is stands. Section 5(b) of the Export Administration amended to read as follows: 108. Gives Commerce a permanent repre­ Act of 1979 <50 U.S.C. App. 2404(b)) is "Cb> AGENCY JuRISDICTION.-Notwithstand­ sentative at COCOM and requires the Ad­ amended by adding at the end the follow­ ing any other provision of law, the Secre­ ministration to report to Congress on why ing: tary shall determine whether an item is sub­ Commerce should not be the lead agency. "(8) Within 6 months of the effective date ject to controls under this Act. Upon the ex­ 109. Requires the Administration to of this paragraph, controls on exports to piration of 3 months after the date of enact­ review the sophistication of goods and tech­ Bulgaria, Czechoslovakia, the German ment of this subsection, no item subject to nology available in the Newly Industrialized Democratic Republic, Hungary, Poland, and controls under section 5 may be subject to Countries and determine if those technol­ Romania shall be no more rigorous than controls under the Arms Export Control ogies warrant multilateral controls. If so, were controls on exports to the People's Re­ Act. In any case where there is a dispute re­ the U.S. should work with our COCOM public of China on January 1, 1989, if the garding the applicability of controls under allies to get these countries to join the mul­ countries have in place safeguards equiva­ this Act or controls under the Arms Export tilateral control system. lent to those in the People's Republic of Control Act, the head of any dissenting 110. Gives commerce the authority to China. The application review procedure for agency may notify the Secretary in writing issue regulations to administer export con­ such exports should be the same as that for of his or her objection. If the two agencies trols without the concurrence of any other exports to the People's Republic of China cannot concur on which controls should agency, unless expressly stated otherwise in on January 1, 1989.". apply within 20 days after such notification, the Act. SEC. 103. SOVIET REFORM. the matter shall be referred to the Presi­ 111. Changes current technology indexing IN GENERAL.-Section 5 of the Export dent for a determination. If no action is provision to state that the Secretary shall Administration Act of 1979 <50 U.S.C. App. · taken within 20 days after the matter is re­ on an ongoing basis index performance 2404) is amended by adding at the end the ferred, the determination of the Secretary levels of the Export Administra­ list to Free World destinations after 2 years subsection on, those nonmilitary industries tion Act of 1979 <50 U.S.C. App. 2414(a)) is unless Commerce formally determines con­ and sectors thereof that can undertake amended by adding at the end thereof the trols should remain. projects to assist the economic reforms in following: "The Secretary shall designate an 113. Moves Defense's authority in the the Union of Soviet Socialist Republics. In official of the Department of Commerce to review process from the Undersecretary for connection with such projects, approvals of represent the Secretary on a permanent Defense Policy to the Undersecretary for export licenses for goods or technology at basis in the United States Delegation to the Acquisitions, where the Militarily Critical higher levels shall be granted to assure Coordinating Committee. Not later than De­ Technologies List is made and there is project completion unless the end-user pre­ cember 31, 1990, the President shall trans­ greater technical expertise. sents a significant risk of diversion to a mili­ mit to the Congress a report describing the 114. Deletes the parenthetical phrase "to tary use.". structure of the United States delegation to the maximum extent consistent with the (b) Poucv.-Section 2(11) of the Export the Coordinating Committee and setting purposes of this Act" from the section on Administration Act of 1979 <50 U.S.C. App. forth any reasons why the representative of Militarily Critical Technologies to ensure 2401(11)) is repealed. the Department of Commerce should not be that controls are limited to items which are SEC. 104. BULK LICENSES. the chairperson of the delegation.". militarily critical. Section 4(a)(2} of the Export Administra­ SEC. 109. TREATMENT OF NEWLY INDUSTRIALIZED TITLE II: TRADE AND INVESTMENT tion Act of 1979 (50 U.S.C. App. 2403(a)(2)) COUNTRIES. 201. Urges President to grant MFN for is amended by inserting after "People's Re­ (a) IN GENERAL.-Section 5(k) of the Bulgaria, Czechoslovakia, East Germany public of China" each place it appears the Export Administration Act of 1979 <50 and Romania. following: ", Bulgaria, Czechoslovakia, the U.S.C. App. 2404(k)) is amended by adding 202. Allows Czechoslovakia, East Germany German Democratic Republic, Hungary, at the end of the following: "The Secretary and the USSR to be eligible for GSP. Poland, or Romania". of Commerce shall undertake a review of, 3598 EXTENSIONS OF REMARKS March 6, 1990 and report to the Congress not later than 3 German Democratic Republic, Latvia, Lith­ fered plans, fielded replies, took home pro­ months after the date of enactment of the uania, and Romania". posals and shook the hands of dozens of Export Enhancement Act of 1900 on, the SEC. 202. ELIGIBILITY FOR GENERALIZED SYSTEM former communits, present communists and goods and technology available from newly OF PREFERENCES. onetime jailbirds in Czechoslovakia, the industrialized countries to determine if such Subsection (b) of section 502 of the Trade Soviet Union, Bulgaria and Romania. goods and technology are of such sophistica­ Act of 1974 <19 U.S.C. 2462(b)) is amended­ He brought back discernible progress in tion that they warrant multilateral control. <1) by striking out "Czechoslovakia", arms control, or so it is said. But in the eu­ If so, the Secretary of State, in coordination <2) by striking out "Germany of the Export Administration mites. In the Soviet Union, the nationalist Act of 1979 <50 U.S.C. App. 2404(p)) is the end of World War II came Soviet domina­ organization Pamyat calls Jews the enemy amended by striking "of Defense Policy" tion of Eastern Europe and total control of ci­ of the people. Leaflets threaten Jews and and inserting "for Acquisition". vilian life. Anti-Semitism, once widespread in warn them to leave the country. SEC. 114. LIMITATION OF CONTROLS. Hitler's Europe, became quieted with the au­ Under communism's iron control, anti­ Section 5(d)(l) of the Export Administra­ thoritarian rule of the Soviet Union. semitism in these nations was more or less tion Act of 1979 (50 U.S.C. App. 2404 The President shall, at the earliest leagues to read it. possible time, act, in accord with the criteria U.S. MUST FIGHT ANTI-SEMITISM and procedures set forth in section 402 of In his quick tour of the wreckage of com­ the Trade Act of 1974, to confer nondiscrim­ munism, Secretary of State James A. Baker inatory ('most-favored-nation') trade status III was too busy to be gleeful, at least on Bulgaria, Czechoslovakia, Estonia, the openly. He neogitated, debated, argued, of- March 6, 1990 EXTENSIONS OF REMARKS 3599 150TH ANNIVERSARY OF LAKE tractors responding to the survey could not THE SUGAR PROGRAM COUNTY, OH perform construction projects they had other­ wise won because no corporate surety would HON. TOM LEWIS HON. DENNISE. ECKART bond them. OF FLORIDA OF OHIO Moreover, the difficulties minority contrac­ IN THE HOUSE OF REPRESENTATIVES tors have with corporate surety bonding are IN THE HOUSE OF REPRESENTATIVES Tuesday, March 6, 1990 not solely limited to new contractors. Many Tuesday, March 6, 1990 experienced minority construction firms have Mr. LEWIS of Florida. Mr. Speaker, there Mr. ECKART. Mr. Speaker, I rise today in been either denied bonding or terminated have been genuine concerns raised by Carib­ recognition of the 150th anniversary of Lake after initially receiving bonding. bean Basin nations, that they are being used County, OH. On March 6, 1840, legislation The corporate surety industry claims that it as a stalking for the attacks on the U.S. passed in both houses of the Ohio General does not discriminate, but it has no figures on sugar program. In fact, the international prac­ Assembly officially creating Lake County, the the amount of business it is doing with minori­ tices which create problems for sugar export­ smallest of Ohio counties. Furthermore, the ty firms. The strict criteria used by corporate ing nations in the Caribbean are the same Lake County commissioners officially declared sureties effectively discriminate against minori­ practices which forced the United States to the year 1990, "The Year of the Lake County ty and women contractors. Reasons such as adopt the defense of a quota system. Sesquicentennial.'' "unfamiliarity with the bonding market", "new­ The real problem with the international In 1795, the western Indians ceded eastern ness to the industry," "small size of the firm" sugar economy is that world prices are artifi­ Ohio to the United States and the earliest set­ and "inadequate financial capital", are often cially low-the result of a worldwide pattern of tlement was in Lake County, at Mentor Marsh. given by corporate surety firms to deny bond­ abusive subsidies which has pushed residual sugar prices below the cost of production For decades the nursery capital of the world, ing to minority contractors. even for some of the efficient producers in the Lake County rapidly urbanized after WWII. The lack of access to corporate bonding, Caribbean and the United States. Many suburban cities sprang into being sup­ therefore, has led minority contractors to the plemented by agriculture from within the For CBI nations, the U.S. sugar market is only available alternative-individual sureties. county. Today, Lake County is a mixture of important because in the U.S. market, they An individual surety is simply any person who urban and rural communities. Additionally, can get a reasonable price for their sugar, in­ is willing and able to guarantee contract per­ many well-known attractions are found in the stead of depressed world dumping prices. If formance with his or her assets. The prolifera­ county. the United States canceled its program, two Lawnfield, one of the major attractions, was tion of the individual surety market in the last things would happen, neither of which would home to the 20th President of the United few years has resulted in many abuses, in­ benefit CBI ecomomies: States, James A. Garfield, and bears the mark cluding individuals listing assets that they do First, while Caribbean sugar exporters might of many generations of .-ie Garfield family. not own or overstating the value of assets be able to send more sugar to the United I come before you today to salute Lake they do own. In testimony during our hearings States, their sugar would no longer earn a County's 150 years of prosperity and I look last February we heard reports of subcon­ reasonable return. Instead, they would face forward to Lake County's promising future. tracts who attempted to collect from individual the kinds of depressed prices that have hurt sureties after the contractor failed to pay, only them in world markets. to come up emptyhanded. While this problem Second, by· canceling its sugar program, the LEGISLATION TO ESTABLISH A is considered by most in the construction in­ United States would undermine the chances PILOT PROGRAM FOR INDIVID­ dustry to be commonplace, there are no defin­ for international sugar policy reforms at the UAL SURETY ASSOCIATION itive data to indicate the default rate of individ­ multilateral trade talks. Secretary Clayton ual sureties. Yeutter, a committed free trade advocate, has HON. CARDISS COLLINS The bill I am introducing today will, I believe, urged the United States not to change its pro­ OF ILLINOIS eliminate the abuses among individual sureties gram unilaterally because it would remove the IN THE HOUSE OF REPRESENTATIVES which have become far too frequent, while incentive for groups like the European Com­ Tuesday, March 6, 1990 preserving access to the bonding market for munity to reform their program. small and minority firms. The legislation estab­ The fact is, the United States cannot solve Mrs. COLLINS. Mr. Speaker, today I am in­ lishes a pilot. program which provides for fed­ the problems facing Caribbean sugar export­ troducing legislation to improve participation of erally approved associations of individual ers by itself. Economic studies have shown small and minority businesses in Federal pro­ sureties. The association concept permits indi­ that if we end our sugar program, the major curement by encouraging Federal agencies to viduals to pool their resources and collectively beneficiaries will be the European Economic accept contract bids underwritten by individual bond contracts. The association becomes Community and Cuba, not the CBI nations. sureties that are members of approved surety liable, therefore, for all contract obligations, Mr. Speaker, the U.S. sugar program pro­ associations. which is secured by a loss reserve fund paid vides vitally important leverage for trade nego­ Current regulations under the Miller Act (40 by members of the approved surety associa­ tiations trying to achieve the long-term multi­ U.S.C. 270a-270f) provide that all Federal tion. In order to become a member of the as­ national reforms that will mean real relief for construction projects over $25,000 be secured CBI nations. by either corporate bonds or personal surety sociation an individual would have to submit bonds. The purpose of the provisions is to certain financial information and be subject to ensure that the Government is protected in an audit. The association itself must adhere to LONG BEACH NAVAL SHIPYARD case the contractor defaults, and to ensure regulations and procedures established by a that subcontractors and suppliers of materials designated Federal agent. This is to ensure HON. MERVYN M. DYMALLY and labor get paid. Unfortunately, because of that all associations pass strict financial muster. Additionally, the associations would OF CALIFORNIA historical exclusion from the construction IN THE HOUSE OF REPRESENTATIVES market, and limited assets, among other fac­ be involved in contract monitoring to ensure tors, relatively few minority-owned companies that work is being properly performed and that Tuesday, March 6, 1990 have been able to secure corporate bonding. potential problems are circumvented. Mr. DYMALL Y. Mr. Speaker, recently, a del­ During hearings I held last February, it These federally approved associations will egation from the city of Long Beach, CA, became abundantly clear that many minority facilitate contracting officers in their review of headed by Mayor Ernie Kell, visited with Hon. construction contractors could not obtain con­ contract bids by giving them assurance that H. Lawrence Garrett Ill, Secretary of the Navy, struction work because no corporate surety the individual suretors is sound. I believe this regarding the Long Beach shipyard. would bond them and Federal contracting offi­ bill will serve the dual function of protecting I am attaching a statement from Mayor Kell cers were reluctant to accept individual sure­ the Government and subcontractor, while ex­ to Secretary Garrett: ties. A 1986 study conducted by the National panding bonding opportunity for minority­ Mr. Secretary, we had breakfast in Long Association of Minority Contractors found, for owned construction firms. I urge my col­ Beach not long ago and I appreciate your example, that nearly 95 percent of the con- leagues to support it. attention to our City. 3600 EXTENSIONS OF REMARKS March 6, 1990 Since then Long Beach has been told that If, after reading the article, other Members sources, some Eastern European nations are our shipyard will be closed. agree that our current mus~le-bound system expelling K.G.B. agents. We understand your answer is that you of export restrictions makes no sense in light None of these changes guarantees that an don't decide these things but please listen to Apple computer won't end up in Soviet how we see the Federal losses from the clos­ of the dramatic political and economic hands if Solidarity is allowed to buy one. ing. changes in Eastern Europe, I would urge them But Poland and Hungary have gone a step There will be economic losses that do not to contact my office and sign onto our letter further: volunteering to accept extremely cut the budget but widen the deficit. to the administration. intrusive safeguards, which include on-site There will be strategic losses that need­ [The New York Times, Mar. 4, 1990) inspections. Just a few days ago, after lessly compromise basic defense posture. months of delay, the Administration re­ There will be political losses that are NOT EVEN AN APPLE FOR POLAND sponded with a statement of export-control unwise for the Administration. (By John Heinz) principles so vague as to have no practical Here are examples supporting these losses WASHINGTON.-Solidarity wants an Apple value for negotiating a new arrangement. as well as documentation of the high cost of computer so it can do a better job of type­ The U.S. has long taken the lead on closing the shipyard. setting its newspaper. The Polish telecom­ export-control issues, but the Administra­ 1. The Navy appears to be downgrading munications authority wants to buy outdat­ tion's hesitation threatens to change that. California, the Country's strongest defense ed Western equipment so that local callers Soviet and Eastern Europe access to ad­ State. Of 43 base closures, 11 are in Califor­ will be able to dial direct. For now, the Ad­ vanced Western technology is governing by nia and 8 of those are Navy. ministration says Poland can't have either. the Coordinating Committee on Multilater­ 2. Economic Losses That Do Not Cut the Meanwhile, China, which savagely sup­ al Export Controls, made up of 14 Western Budget but Widen the Deficit presses democracy, can buy mainframe com­ European countries, Japan, Australia and Closing the most budget "profitable" ship­ puters 10 times more powerful than the the U.S. The unity of this watchdog, known yard will not cut the budget deficit. computer Solidarity's newspaper can't have. as Cocom, is one of the West's best sources After closing costs, the Navy will further Thanks to purchases of U.S. equipment and of leverage for democratic change in East­ aggravate the deficit when, due to the re­ satellites, China soon will have one of the ern Europe. duction of land bases in Europe, it will be world's most modern telecommunications In the past two years, France, Britain and necessary to reopen Long Beach to help systems. Italy have allowed companies to circumvent maintain maritime capability. The difference lies in liberalized export Cocom's control and sell advanced technolo­ Closing the shipyard at Long Beach to regulations agreed to in 1985 to encourage gy directly to the Soviet Union. This dete­ possibly expand the Naval Station will not China to "grow out" of tradition Marxism­ rioration in unity will continue to accelerate reduce the budget deficit. Leninism. Despite impressive attempts by the longer we resist adjusting to the The Long Beach Naval Shipyard is a Poland and Hungary to win U.S. confidence, changes in Eastern Europe. This message highly competitive bidder which helps to the Administration refuses to grant these was conveyed to the Administration at a keep private shipyard costs down. struggling democracies the same access to recent Cocom meeting; our partners called 3. Strategic Losses that Needlessly Com­ Western technology we allow China. That for a trade agreement with Eastern Europe promise Basic Defense Posture defies common sense. that would match t~ China arrangement in The Navy would eliminate from the West Poland and Hungary should be granted a every respect. The AClministration agreed to Coast the only non-nuclear, surface vessel, comparable arrangement immediately-con­ liberalize controls in only 3 of 39 technology overhaul base near the Pacific Surface tingent, of course, on President Bush's categories. Fleet, and disband its 4100 trained workers. having assurances that Soviet intelligence The costs of the Administration's delay California homeports at least 30% of all operatives in those countries have been will not be limited to a loss of international Naval surface vessels. Most of these would evicted or contained. The same should hold influence. We also will end up U.S. be left with compromised Federal overhaul companies out of lucrative markets, while capability. for any Eastern European nation that Shipyard closure will eliminate the eco­ adopts a democratic system and takes con­ their Japanese and European counterparts nomic advantages of the Southern Califor­ crete steps to reduce its military, intelli­ cut deals. nia industrial base, the strongest in the U.S. gence and economic ties to the Soviet Long Beach is the historic guts of Pacific Union. Rim overhaul. Helping Poland and Hungary match their HOW CONTRAS FELLED ORTEGA 4. Political Losses that are Unwise for the political successes with modernized, success­ Administration ful economies is the only way to insure the HON. DUNCAN HUNTER The Navy would purposely punish the permanence of reforms. Modem technology West Coast's most loyal Navy town. is the key. As Peter Varkonyi, Hungary's OF CALIFORNIA The Navy would strain the support of Ambassador to the U.S., put it, "We cannot IN THE HOUSE OF REPRESENTATIVES California's 10% of The Congress and 14 have a first-rate economy with third-rate Chairmanships on Capitol Hill. technology, and we cannot earn the curren­ Tuesday, March 6, 1990 cy required to transform our backward Mr. HUNTER. Mr. Speaker, in the wake of economies into modern ones if we cannot compete in the world marketplace." last week's stunning UNO victory in Nicara­ ADMINISTRATION SHOULD gua, it is important that we examine the Amer­ MOVE FASTER ON EASING Recent reports indicate some Administra­ tion members are thinking about relaxing ican policies which forced Daniel Ortega to EXPORT CONTROLS controls affecting exports to Poland and conduct the elections and helped to return Hungary in perhaps a year. New technology freedom to the people of Nicaragua. HON. RON WYDEN can make a difference today; a year could be The article reprinted below appears in the OF OREGON too long, if democracy begins to weaken. In March 1O, 1990 edition of Human Events. The IN THE HOUSE OF REPRESENTATIVES explaining the delay, the Administration author, Brett Sciaroni, served as the counsel cites old worries: Both countries belonged to Tuesday, March 6, 1990 the Warsaw Pact; both were members of Co­ for President Reagan's Intelligence Oversight Board. I believe that my colleagues will find Mr. WYDEN. Mr. Speaker, my colleagues mecon, the Soviet-dominated economic alli­ that Mr. Sciaroni offers an excellent summary BILL GRADISON, NANCY JOHNSON, and I are ance, and both were heavily infiltrated by of why President Reagan's policy of aiding the. seeking signatures on a letter to the adminis­ the K.G.B. Today Comecon is dead in all but name. Nicaraguan freedom fighters was right. The ar­ tration urging faster action in dismantling out­ Its 10 member nations recently voted to ticle also outlines why we must continue to be dated restrictions on high-technology exports move toward a market-based system of vigilant in the face of the Sandinista's appar­ to Eastern Europe. trade. Hungary and Czechoslovakia pro­ ent reluctance to give up control of the Soviet­ This past Sunday in an op-ed in the New posed to gut the system and get on with in­ supplied 100,000-man army and the 20,000- York Times, Senator JOHN HEINZ made a tegrating their economies into the West. man police force. strong case for the need for major reforms in The Warsaw Pact, too, is all but dead. this area. Among other things, he noted that Poland, Hungary and Czechoslovakia have [From Human Events, Mar. 10, 1990) the administration will not approve the export announced military spending cuts of up to How CONTRAS FELLED ORTEGA ... AND WHY 25 percent in the coming year. Moscow THEY SHOULDN'T DISBAND of an Apple computer to Solidarity in Poland began withdrawing troops from Czechoslo­ to help typeset its newsletter. I would like to vakia a few days ago, and plans to begin (By Bretton G. Sciaroni) have the full text of that article printed in the pulling out of Poland and Hungary in In the wake of the stunning victory of RECORD. coming months. According to i?1peccable Nicaraguan opposition candidate Violeta March 6, 1990 EXTENSIONS OF REMARKS 3601 Chamorro over President Daniel Ortega, a American help to enforce the Contra demo­ Thus, the Bush Administration should not fierce debate has arisen over who should get bilization by Dec. 5, 1989, as promised in the agree to Contra demobilization until the credit for ousting the Sandinista strongman. Tela accord. For despite the involvement of army and secret police are disbanded, and Opponents of the Nicaraguan freedom the United Nations, an unprecedented use all security advisers from the Soviet bloc fighters were quick to assert that Chamor­ of the organization in this hemisphere, little and Cuba are sent home. To do otherwise ro's triumph had nothing whatsoever to do progress had been made in getting the re­ would jeopardize the fruits of Chamorro's with former President Ronald Reagan's sistance to turn in their weapons and electoral victory and the sacrifices of the policy of aiding the armed resistance. assume refugee status or be repatriated to freedom fighters on the battlefield. For example, a long-time opponent of Nicaragua. Reagan's Nicaraguan policy, ultraliberal Furthermore, despite losing the election, Sen. Tom Harkin