May 3, 1979 EXTENSIONS OF REMARKS 9847
RECESS UNTIL MONDAY, MAY 7, 1979 THE JUDICIARY DEPARTMENT OF JUSTICE Amalya L. Kearse, of New York, to the U.S. Peter J. Wilkes, of Illinois, to be U.S. mar- Mr. BAKER. Mr. President, if there be for the second circuit, vice a to be transacted, I circuit judge shal for the northern district of Illinois for no further business new position created by Public Law 95-486, the term of 4 years, vice Harvey N. Johnson, move that the Senate stand in recess un- approved October 20, 1978. Jr., deceased. y, May 7, 1979, at 12 noon. IN THE ARMY til Monda Henry A. Politz, of Louisiana, to be U.S. The motion was agreed to; and at 7: 09 circuit judge for the ñfth circuit, vice a Lt. Gen. Edward Charles Meyer, xxx-xx-... the Senate recessed until Monday, p.m., new position created by Public Law 95-486, , Army of the United States (brlgadier noon. May 7, 1979, at 12 o'clock approved October 20, 1978. general, U.S. Army), for appointment as Mary M. Schroeder, of Arizona, to be U.S. Chief of Staff, United States Army, in the NOMINATIONS circuit judge for the ninth circuit, vìce a grade of general, under the provisions of nominations received by the new position created by Publlc Law 95-486, title 10. United States Code, sections 3034 and Executive 3066. Senate May 3, 1979: approved October 20, 1978.
EXTENSIONS OF REMARKS ve that the federal As you know, Carpooling and Vanpoollng VANPOOLING eral years of effort, I belie laws we needed to promote vanpooling essen- programs are self-sustaining. Participation zation, tially are in place. I am proud of the role I fees for Vanpools cover vehicle amorti HON. ROBERT W. EDGAR played last year in developing and introduc- operating, and maintenance expenses. The ing Section 126 of the Surface Transportation federal role is limited to promotion of the OF PENNSYLVANIA Assistance Act of 1978. mode by dissemination of informatlon and avail- IN THE HOUSE OF REPRESENTATIVES This section did the following: technical assistance. Grants-in-aid are to States under the able to M.P.0.'s and other public bodies to day, Mav 3,1979 First, funds allocated Thurs federal-aid primary, secondary, and urban assist in the promotional effort. I expect EDGAR. Mr. Speaker, in his recent system highway programs now may be used that many M.P.0.'s and many States will be 0 Mr. as a result of the the President called on for carpool and vanpool projects if the States interested in Vanpooling energy message nts, which require line by com- so choose. We have eliminated the con- Clean Air Act amendme Americans to conserve gaso ools are consideration of various shared-ride and by public transportation notation that carpools and vanp muting to work "demonstration projects." Carpool and van- transportation control strategies to reduce or by forming carpools and vanpools. pool promotion now can be an ongoing com- pollution. The Environmental Protection The Congress has been ahead of the ponent of State transportation programs. Agency estimates that each Vanpool reduces administration on both of these issues. Second, Section 126 exempted interstate atmospheric pollutants by 1.8 tons annually. cities The Surface Transportation Assistance Vanpools from regulation by the Interstate Vanpooling must be looked upon by Act of 1978 authorizes significant Commerce Commission. Some public trans- as an essential component of any program amounts of new funding for public trans- portation unions argue against the granting with a goal of reducing vehicle miles of this exemption, but-wisely I think- travelled. portation, and a Federal carpool and .Section 126 is now law, but some of the was enunciated for the Congress ignored the advice and recognized vanpooI policy the inappropriateness of such regulation. financial aid provisions have, unfortunately, ñrst time. Third, Section 126 declared to be Na- not been implemented. The $1 million au- van- This evening I will be discussing tional Policy that special efforts should be thorized for the internal use of DOT in deal- pooling with the National Center for Ad- made to promote commuter modes of trans- ing with regulatory issues, (...) and the ministrative Justice, which is interested portation which conserve energy, reduce $9 million authorized for grants-in-aid, have in reform of the legal and regulatory en- pollution, and reduce traffic congestion. To not been appropriated. This funding will vironment in which vanpools must oper- my knowledge, this ìs the ñrst time that draw-down the highway trust fund, but first policy has been enunciated an action of the Appropriations Committee is ate. I submit for the RECORD here these this sensible within the highway statutes. Section 126 required. The Carter Administration dld not remarks on vanpooling for those who request these funds in its FY 1980 budget. learn more about this inno- further directs that the Secretary of Trans- would like to portation assist public and private employ- Last month I testified before the Transporta- vative and promising technique to save ers and employees who wish to establish tion Subcommittee of the House Committee on Appropriations to urge that they appro- energy and to improve the utilization of carpooling and vanpooling programs. The priate these funds, and I believe that the our transportation system: Secretary also is instructed to assist State Committee will act favorably on this request. FOR ADMINISTRATIVE Jus- and local government in removing legal and NATIONAL CENTER On the one hand, the President has exhorted VANPOOLING-AN EMERGING COM- regulatory barriers to carpooling and van- TICE' the public to form Vanpools and Carpools, MUTE-TO-WORK OPTION pooling. and on the other hand his budget planners (Remarks of Representative ROBERT W Fourth, Section 126 authorizes $1 million have refused to ask for the extremely modest EDGAR) in FY 1979 and $1 million in FY 1980 for amounts of money authorized to promote use by the Secretary of Transportation in I am pleased to be here and I would like to such efforts. This hypocrisy must end. deferring the Department of Transporta- thank the National Center for Administrative Jf we get an appropriation, and if DOT this conference to dis- tion's internal costs in promoting vanpool- follows through with the clear Intent oí Justice for convening technical assistance on cuss the regulatory and operational problems ing and in providing Congress in passing Section 126, I beìleve that impede expansion of vanpooltng. Most conferences in Washing- regulatory problems that the Congres.lonal role in the effort to . ton seem to be focussed on the Congress; on Vanpooling promote Vanpooling will be over. Attention often, the intention is to whip up sentiment In addition, $3 million in FY 1979 and $9 now must turn to the State and local level for some new spending program. By contrast. million in FY 1980 is made available to the and to regulatory questions. I hope this Con- this conference deals with a topic-the topic Secretary for grants-in-aid to States, local ference can be helpful to the DOT and to of Vanpooling-where federal spending pro- public bodies, and metropolitan planning others in assessing the regulatory problems grams aren't all that important. While fed- organizations for the purpose of establish- we face.* eral technical assistance could be very help- ing and promoting Carpool and Vanpool ful in promoting the start-up of new vanpool programs. These funds are not intended to programs around the country, once organized, defer the cost of vehicle acquisition or to MAcARTHUR MEMORIAL WEEK Vanpools are self-sufñcient. The key to pro- cover the normal operating expenses of Van- moting the use of Vanpooling probably rests pools. This is purely technical assistance with reforming the regulatory and legal en money, to be used for such activities as HON. CLEMENT J. ZABLOCKI vironments in which they must operate. This, matching riders with other riders, evaluat- OF WISCONSIN I understand. is the focus of this confer- ing the viability of specific vanpool pro- ence-and I think it is a very appropriate posals, and so forth. For further guldance on IN THE HOUSE OF REPRESENTATIVES one. the intent of this program, I draw your Wednesdav, May 2, 1979 As background, let me examine with you attention to remarks I inserted into the some of the things the federal government CONGRESSIONAL RECORD on September 27, • Mr. ZABLOCKI. Mr. Speaker, on June has done to promote Vanpooling. After sev- 1978. 8, 1979, a commemorative statue of Gen-
0 This "bullet" symbol identifies statements or inserti ons which are not spoken by the Member on the floor. 9848 EXTENSIONS OF REMARKS May 3, 1979 eral of the Army Douglas MacArthur the approval of the legislative commit coveries to proceed to development and sub will be unveiled in Milwaukee, Wis., tees concerned with this issue. jects the finest onshore oil and gas area in highlighting a week of celebrations to The text of the Policy Committee Alaska to thorough study and analysis. It commemorate the distinguished General statement is as follows: maintains the present level of productivity for the timber industry, thereby preserving MacArthur and his forebears. I am H.R. 39-ALASKA NATIONAL INTEREST LANDS introducing today a joint resolution jobs. CONSERVATION ACT H.R. 39 also deals equitably with other authorizing and requesting President The Alaska National Interest Lands Con important interests by facilitating com Carter to proclaim that same week, ~ervation Act is one of the most sweeping pletion of the Statehood land grants and rec June 8, 1979 through June 14, 1979 as environmental measures to be considered by ognizing the rights of other users of the "MacArthur Memorial Week." the Congress of the United States. It also public lands by permitting more sport hunt Gen. Douglas MacArthur's stamina represents the classic confrontation between ing and more opportunities for recreation and drive in leading our forces in World environmental interests and viable economic development in Alaska. interests. The Udall substitute does not provide this War II depicted his dedication to serv balanced approach to allocating Alaska lands ing his country. While he was a contro The Republican Policy Committee supports the passage of H.R. 39, the Alaska National in the "national interest." The Udall substi versial leader in some respects, few citi Interest Lands Conservation Act as reported tute proposes designating 140 million acres zens I believe would doubt his courage, by the Committee on Interior and Insular of Alaska for environmental uses and severely love of country, and excellent leader Affairs or the Committee on Merchant Marine restricting State and economic uses. For ship traits. We can learn from the many and Fisheries (the Huckaby and Breaux example, it precludes oil and gas assess examples he set in standing up for his Dingell bills). The Policy Committee opposes ment and possible development of one of the values and in serving our Nation so the passage of the Udall substitute which most significant oil and gas areas in Alaska proposes large land set asides for environ and the USA. This proposal prohibits min valiantly. eral development in two of the seven major Mr. Speaker, this year marks the 80th mental special interests without legislative hearings and Committee approval. mineral discoveries in Alaska and statutorily anniversary of Douglas MacArthur's Alaska is America's last great frontier. The closes future hard rock mineral development entry into the U.S. Military Academy at State of Alaska encompasses land and inland in Alaska by including nearly 70 % of the West Point. Accordingly, citizens and water areas of some 375 million acres, an area mineral provinces rated "highly favorable" veterans' organizations will join the Mil one-fifth the size of the continental United by the U.S. Bureau of Mines in units pro waukee County Historical Society in pay States. Its vast natural resources remain hibiting mining. The Udall substitute also largely undiscovered and undeveloped. severely reduces the timber harvest in south ing tribute to the esteemed General and east Alaska through wilderness designations his family. We are deeply honored that What is the "national interest" in the vast which threatens the loss of 2,000 jobs. It Mrs. Jean MacArthur, the General's Alaska landscape and its accompanying re effectively denies the State of Alaska rights widow, will be in Milwaukee on June 8 sources for the United States in the late 20th to lands previously selected by the State and to unveil the 9%-foot statue which was Century? For environmentalists, the "na closes approximately 30 million acres to sport designed by Robert Dean, nationally tional interest" represents the last opportu hunting. nity to preserve intact a significant portion By comparison, H.R. 39 as favorably re known artist and West Point graduate. of this nation's wilderness heritage-a leg The citizens of Milwaukee, and Wis ported by the two House Committees pro acy that has disappeared almost entirely or vides a balanced approach to two competing consin, are proud that General Mac exists only in comparatively small portions Arthur considered Milwaukee his home. interests. In striking that balance, H.R. 39 in other states. For Alaskans and economic is predicated upon legislation considered and His father and grandfather also con interests these same lands are perceived to agreed to in the 95th Congress as a reason tributed importantly to the State of Wis contain resources and economic opportuni able compromise. H.R. 39, therefore, repre consin and to our Nation. Judge Arthur ties that may be unavailable unless a signif sents the considered judgment of two House MacArthur served as Wisconsin's Lieu icant portion of these "national interest" Committees and two Congresses. lands are kept open to multiple use and de tenant Governor and as second Wiscon velopment rather than held hostage to lost At a time when United States dependence sin circuit court judge from 1858 to 1869. opportunities by wilderness preservation. on the importation of important minerals, Lt. Gen. Arthur MacArthur, his son, was H.R. 39 proposes the designation of 120 to oil, and natural gas is increasing at an un awarded the Medal of Honor for bravery 148 million acres of new parks, refuges, for precedented rate and with significant eco in action at Missionary Ridge, Novem ests, wilderness, and wild and scenic rivers nomic consequences to this Nation, it makes ber 25, 1863. for environmental purposes. The land de5ig sense not to preclude resource develop ment where compatible with environmental Mr. Speaker, it is a privilege for me to nations made in this legislation dwarf pre vious designations such as the creation of interests.e introduce this resolution today to au the National Forest System and the designa thorize President Carter to proclaim tion of Yosemite and Yellowstone National "MacArthur Memorial Week" so that all Parks. This legislation will double the size SALVATION ARMY ASSOCIATION our citizens may pay tribute to these out of the National Park System and nearly TRIBUTE standing Americans. • quadruple the size of the National Wildlife Refuge System and the National Wilderness Preservation System. The land designations in this legislation will affect the availabllity HON. RICHARD L. OTTINGER GOP SUPPORTS BALANCED of wildlife, recreational, and mineral re OF NEW YORK ALASKAN LANDS BILL sources of the State for decades to come. It IN THE HOUSE OF REPRESENTATIVES will significantly impact the State of Alaska and this nation's future economic potential. Thursday, May 3, 1979 HON. BUD SHUSTER H.R. 39 affects from 33 to 40 percent of the e Mr. OTTINGER. Mr. Speaker, on land acreage in Alaska. It creates (a) 20 mil OF PENNSYLVANIA Thursday evening, May 3, the Salvation lion acres of parks and monuments, (b) 12 to Army Association of New Rochelle will IN THE HOUSE OF REPRESENTATIVES 22 million acres of land preserves, (c.) 1 to honor Capt. Thomas Wilson and June Thursday, May 3, 1979 5 million acres of national recreation areas, (d) 45 to 88 million acres of wildlife refuges, Schetterer at the Beach and Tennis Club e Mr. SHUSTER. Mr. Speaker, I am (e) 1.5 million acres of wild and scenic rivers, in New Rochelle, N.Y. The association today inserting into the CONGRESSIONAL (f) adds 3 million acres to existing national is celebrating its 90th year of service to RECORD a copy of the Republican Policy forests, (g) establishes 2 to 3 million acrl!s the New Rochelle community and will Committee statement supporting the of conservation areas, and (h) designates also be holding a service of rededication a total of 51 to 54 million acres as wilderness. passage of H.R. 39, the Alaska National In effect, the land set aside in H.R. 39 is on Sunday afternoon. Interest Lands Conservation Act. equal to the land area along the eastern sea Captain Wilson has been the command The Republican Policy Committee, board of the United States stretching from ing officer of the Salvation Army in New which I am honored to chair, strongly Maine to North Carolina. Rochelle since September 10, 1978. Prior endorsed the passage of the Alaska lands The Republican Policy Committee believes to that time, he served in Maine, Ohio, bill as reported by the Committee on that H.R. 39, as reported, represents a bal Kentucky, New Jersey, Vermont, and Interior and Insular Affairs or the Com anced approach to the allocation of lands in Alaska in the "national interest." It pre upstate New York. Since his arrival in mittee on Merchant Marine and Fish serves intact a significant portion of this New Rochelle, he has been quite active eries. The Policy Committee opposes the nation's wilderness heritage and preserves in a number of civic groups and organi passage of the Udall substitute which was options for natural resource development. zations. Presently he is serving on the recently introduced and does not have H.R. 39 permits major existing mineral dis- executive committee of the Inter-reli- May 3, 1979 EXTENSIONS OF REMARKS 9849 gious Council and is a member of the serves refreshments to weary fire was sent to the ethics committ ee. At the Council of Social Services, a member of fighters. Police, confronted with tran time, it seemed as if the House might be the Huguenot Lions Club, and a past sients in trouble who have committed no sidest epping t he embarassing matter. But t he committee has shown that it secretary of the New Rochelle Lions Club. crime, send them to The Salvation doesn't intend to sit on the mat ter. The He has hosted memorial services for vet Army. Lodging is found for them or committee probably will conduct public erans each May, served as Marshal in funds given to them to help reach their hearings to discipline Diggs. That would the annual Thanksgiving Day Parade, destination. Clothing and other essen bring t he congressman's criminal misdeeds and has assisted many groups with their tials are found for families made home before t he public's eyes again. productions of the musical "Guys and less by fire. Food is provided needy resi Diggs repeatedly has made it clear that Dolls." Captain Wilson was born and dents at Thanksgiving and toys and he t hinks he has a place in Congress. Con other gifts are given at Christmas when gress should now, in turn, make it very clf!A-" raised in Lima, Ohio, and has the dis that it disagrees.e tinction of being the first bachelor to be food baskets are also provided. appointed commanding officer in New Over the years, and especially dur Rochelle. ing the depression and war years, funds were hard to come by. Now as a mem TWO PERCENT LOCAL AIR PLAY June Schetterer has been a member of PROPOSAL FAVORED the Advisory Council of the New Rochelle ber of the United Way, the Army is re Salvation Army since 1960, and she was stricted in its fundraising. But never one of two recipients of the Westchester since its resurgence in 1922 has it ceased HON. DON BAILEY County Advisory Board Volunteer of the its public service because its purse was OF PENNSYLVANIA light.• Year Award several years ago. IN THE HOUSE OF REPRESENTATIVES Mrs. Schetterer has been a resident of Thursday, May 3, 1979 New Rochelle since 1948 and has been as CONGRESS HOUSE CRIMINAL sociated with New Rochelle's newspaper, • Mr. BAILEY. Mr. Speaker, James F. the Standard Star for 30 years. During O'Leary, a resident and businessman of that time, she has covered nearly every the 21st Congressional District of Penn HON. NEWT GINGRICH sylvania, has brought to my attention beat and has been involved with most OF GEORGIA of the major events in the city as a staff the 2-percent local air play proposal member. Over the years, her byline has IN THE HOUSE OF REPRESENTATIVES which he would like to see incorporated Thursday, May 3, 1979 into the new Communications Act. appeared on news stories, feature stories, After consideration of this proposal, I and on the columns, "Viewpoint," e Mr. GINGRICH. Mr. Speaker, each favor its spirit and respectfully request "Everybody's Corner," and in recent day this session, a convicted felon has that the following resolution-adopted years "What's Going On." She has been been voting on the floor of the House. by the city of Pittsburgh on May 8, the religion editor for 29 years and was Over 2 months ago, we were promised 1978-and petition-submitted to the honored for her contributions to the re the Committee on Standards of Official Honorable LIONEL VAN DEERLIN in May of ligious community several years ago. Conduct would expeditously consider 1978-be noted: Long active in the community, Mrs. this case. Now we find the committee has Whereas, t he City of Pittsburgh is known Schetterer has served on the board of only reached the stage of considering for its support of the ARTS; and trustees of the New Rochelle Humane preliminary motions. On May 16, the Whereas, the City of Pittsburgh has, both Society, the survey committee of the committee will vote on a motion to dis within its boundaries and in adjacent com New Rochelle Council of Churches, and miss the case, made by our colleague, munities, an abundance of musically tal the Project Fund Committee. Mr. DIGGS. ented artists and a more than adequate Mrs. Schetterer and the other mem Presuming the committee turns down amount of individuals and businesses that are dedicated to the necessary supportive bers of the citizens advisory board help that motion, it will be at least the end services such as recording studios, producers raise and administer funds and offer of the month before a disciplinary hear and independent record companies, theatri advisory help to the officers in charge ing can even be scheduled. Delay in our cal booking agents and publishers; and of the corps. The fundraising was even system destroys respect for the law, just Whereas, t he Council of the Cit y of Pitts more visible in the days before the as having a convicted felon voting on burgh wishes to lend its support by encour Community Chest and the United Fund our legislation laws destroys respect for aging major local radio stations to air qual were created. Since their development, the law. tt y locally produced musical products in a meaningful commercial manner equivalent the Salvation Army has become an ac This is the week of Law Day-a bitter to t hat of a record charted nationally, and tive agency with them. irony as our colleague Mr. BETHUNE on a national label; and Some of the city's most prominent pointed out May 1. In a free society, we Whereas, t he House of Represent atives of citizens have served on the board, in must depend upon respect for the law. t he Unit ed States Congress is current ly in more recent years called the Advisory Occasions like Law Day encourage that the process of revising the Communications Council. Mrs. Ashton M. Tenney, elected respect-but they do no good so long Act ; and as Congress fails to discipline its own Whereas, the Honorable John Dent has en a life member, has served on the board dorsed a petition from Pennsylvania resi since 1935. The late Mrs. W. B. Gozman, House criminal. dents which has been present ed to the ap another life member, had served as vol I would like to share with the Members propriat e subcommit tee asking for this par untary secretary for more than 30 years. an editorial with this title, from the ticular local access. After her death, the council created an Fort Lauderdale News, April 9, 1979: Now, t h erefore, be it resolved t hat t he annual award to be given in her memory CONGRESS HOUSE CRIMINAL Council of the Cit y of Pittsburgh supports to the best camper at Ashford Hills, a Congress criminal member may not be in the efforts of Congressman Dent and the prison yet, but neit her is he home free. A pet itioners and respectfully request s and former Salvation Army camp. Gifts of urges t he Honorable Lionel Van Deerlin, equipment were also given to the camp in congressional ethics committee last week took st eps that could lead t o the ouster of Chairman, Communications Subcommittee, her memory. The funds come from the Rep. Charles Diggs from the House. to incorporat e the spirit of t he petition int o Salvation Army Association of New The ethics committ ee vot ed unanimously t he Communications Act, which is t o be resolved. Rochelle which is made up of "Friends to file 18 misconduct charges against the of the Army." Michigan Democrat, convict ed last year on 29 Those persons supporting the petition Founded here only 9 years after the felony counts of mail fraud and federal pay sent to the Honorable LIONEL VAN first Salvationists had arrived in New roll padding. DEERLIN requested that the committee York City from England, the Salvation Diggs is appealing the conviction and consider offering legislation that would Army continues to provide the same type that's kept him out of prison-where he faces a three-year sentence. require publicly licensed radio stations of services. to air a minimum of 2 percent (collec But t he conviction hasn't kept him out When there is a multiple fire alarm of the House. In fact , it hasn't even kept tively totaled over a period of time, such in the area to which New Rochelle fire him from voting. as 1 year, so as to allow for temporary men respond, the Salvation Army loads A group of Republicans asked the full lack or abundance of good locally pro up its canteen from White Plains and House to expel him, but the matter instead duced product) of musical programing 9850 EXTENSIONS OF REMARKS May 3, 1979 that is produced and recorded, at least in Sol and Ada Urbach are a credit to Under the present system, the higher in part, locally; for exami?le, withi~ a 100- their family, their community, and their flation goes, the higher the effective tax rate mile radius of each statiOn's serv1ce area. heritage. It is my privilege to call them goes, without any new action by Congress. The petition reads as follows: my friends and neighbors. On May 6, Tax revenue increases faster than gross per 1979, they are being honored by the Flem sonal income and faster than inflation itself. We believe that the precedent for this type Thus, thanks to inflation, Congress can pass of legislation has already been accepted by ington Area Committee-State of Israel new spending bills without having to vote the general public, enacted by Congress, and Bonds. It is an honor they richly deserve. for increased taxes to cover them. A bigger enforced by the F.C.C., in the television in I will be with them on that special day and bigger slice of the real wealth of the dustry; thus effectively preventing total tele and I want to honor them today in the country keeps on being funneled through vision viewing content from being monop the Federal Government. olized by the major networks, et al. U.S. Congress.• Further, we believe that all of the good "Indexing," which is already being used in and proper reasons brought forth for the Canada, would be a quick and equitable necessity of legislation in the television sit LOUIS RUKEYSER IN SUPPORT OF solution. Each year, systematically and auto uation are quite pertinent to the radio situ TAX INDEXING matically, the dollar limits of tax brackets, ation, some of which are : to bring greater exemptions and fixed deductions would be diversity to the general public; to foster a raised to match the inflation rate. Our taxes broad spectrum of ideas and opinions; to HON. LAWRENCE COUGHLIN would go up as our incomes increased, but a raise that merely kept us even with infla prohibit monopolistic practices and to foster OF PENNSYLVANIA and encourage local talent and related in tion would not be taxed at a higher rate than dustries (musicians, singers, writers, talent IN THE HOUSE OF REPRESENTATIVES before. Those on fixed incomes-which are, agents, record producers, management per Thursday, May 3, 1979 of course, worth less after a year of infla sonnel, music publishers and recording tion-would see their taxes actually decline. studios, etc.), thus the free enterprise sys e Mr. COUGHLIN. Mr. Speaker, now And investors would no longer pay very real tem itself. that the American people have been hit capital-gains taxes on entirely fictitious This suggested change would not or should simultaneously with their 1978 tax bills after-inflation gains. not affect the proper right of a radio station and the news that the rate of inflation Who would lose? Only the politicians to select a product within the chosen musi for the first quarter of 1979 is equiva who now get away with pretending to reduce cal programing format of each station, and taxes (as in last year's phony-baloney $18- lent to an annual inflation rate of 13 billion "cut") at times when, after inflation, with the selection of a particular product percent, many are beginning to under still the sole and exclusive domain of each they are actually raising them. The most station, thus there would be no violation stand how the Federal Government--for powerful tax policymaker in washington, of the intent and purpose of Title 47/ US all its hand-wringing about inflation chairman Russell Long (D-La.) of the Sen Code, section 326. is in fact inflation's chief beneficiary. ate Finance Committee, is fully aware of It is our strong belief that the net result 'As the incomes of Americans rise in what would happen if we moved to "index (of this suggested legislation) would be inflated dollars which give them no ad ing" and Congress continued its spendthrift firmly in the public interest.e ditional purchasing power, taxpayers ways. "You'd be constantly under pressure to raise taxes," confesses Long, who would are pushed into higher tax brackets plainly rather do it than have to say he was where they are taxed at higher rates. doing it. A TRIBUTE TO SOL AND ADA Not only is the taxpayer unable to buy Meanwhile, the tax system itself continues URBACH more with his money, but he is forced to be a significant engine of higher costs to pay more tax on it, and the Federal throughout the economy. As a perceptive Treasury reaps a windfall. Annual cost reader of this column, John R. Hartley o! HON. JAMES A. COURTER of-living adjustments in the tax rates, Charlestown, R.I., comments, "Under high OF NEW JERSEY personal exemption, and other set fi~ inflation, which we've had for 10 years (and ures in the tax code would correct th1s expect to continue) the income-tax system IN THE HOUSE OF REPRESENTATIVES operates like a self-destruct mechanism. In Thursday! May 3, 1979 glaring inequity, and I am again, as I flation pushes a worker into a higher tax have in the past, sponsoring legislation bracket, his buying power goes down and he e Mr. COURTER. Mr. Speaker, it is a to index the tax rates to account for demands more than a cost-of-living raise." privilege to call to the attention of my inflation. Hartley cites the case of a two-income colleagues Sol and Ada Urbach, of Hun I am pleased that an array of leaders couple without dependents whose taxable terdon County, N.J. Sol and Ada are ex from Government, labor, business, and earnings total $40,000. If inflation holds at traordinary people who came to New Jer academia are being joined by a growing 8 percent annually for the next decade, and sey 28 years ago. They came to America number of angry taxpayers in pressing they get yearly increases to rna tch, their to pick up the shattered pieces of their combined 1988 income will be a lofty $86,357. for tax indexing legislation. A recent ar But because their top tax bracket mean lives. Sol and his family were sent to Nazi ticle by noted economic analyst, Louis while will have crept up from 45 to 58 per concentration camps--only Sol was Rukeyser, makes the case for indexing cent, their actual after-tax buying power will spared. Ada and her family spent the war once again and I insert it in the RECORD have declined by nearly 20 percent. They at forced labor in the frozen waste of at this point: won't know what hit them-but the poli Siberia. INFLATION GIVES UNITED STATES A TAX ticians will. Sol is a carpenter, so he started build WINDFALL Without "indexing," we penallze both the ing things and he was a credit to his (By Louis Rukeyser) working and the retired, and we tell those c~·aft. But moreover Mr. Speaker, he with capital that they had better seek gov Don't look now, but there really have been ernmental-style shelters (like municipal built more things with his heart and his some unconscionable windfall profits in the bonds) than invest in productive industry. integrity of conscience than he did with Amerlcan economy-and they've just been We reward only the politicians, who are his hands and his tools. Sol and his wife grabbed by the Greediest Gus of all. spared the inconvenience of having to tell us Ada have built a monument-a monu The villain is, would you believe it, the the truth about how much of our wealth ment to liberty, justice, and the freedom very fellow who is so busily pointing his they are taking. This is the swindle on which of thought and religion. Sol and Ada patriotic finger at everybody else : Uncle we ought to be focusing, and before another have been tireless workers for the politi Sam (or at least his surrogate from Georgia). April 15 is past. Let's deduct the govern For the government, which is whipping up a ment's stake in inflation from our taxes.e cal and religious State of Israel. Under largely fictitious furor about alleged "wind Sol's strong direction Hunterdon Coun fall profits" in industry, is simultaneously ty is one of the top per capita Israel and quite cheerfully banking its annual TRIBUTE TO RICHARD "DICK" bond communities in the Nation. The horde of windfall taxes-reaped through in S. Urbachs were selected to represent Hun flation. FITZGERALD terdon County at the Special Israel Bond That the government is the one big win Prime Ministers Conference held in Is ner in inflation is still only dimly realized by HON. ROBERT K. DORNAN rael. They have been instrumental in the t he average taxpayer. Yet the cynical tax lords of Washington regard it as one of life's OF CALIFORNIA establishment of a chair at Yeshiva Uni most lovely facts. By the simple device of re IN THE HOUSE OF REPRESENTATIVES versity for the study of holocausts. Sol fusing to "index" the tax system-that is, Thursday, May 3, 1979 has also been very generous with his tal to make it conform honestly to the present ents and energy to many local organiza day realities of inflation-they assure that • Mr. DORNAN. Mr. Speaker, I would tions including the YMCA, the Lions while you and I may be painful losers, the like to share with our colleagues the Club, and the chamber of commerce. polit icians will never have had it so good. achievements of a civic leader who has May 3, 1979 EXTENSIONS OF REMARKS 9851 set a standard for all of us to take note Members of the United Auto Work Section 2.-To send a copy of this Reso of. Richard S. "Dick" Fitzgerald is re ers can take pride in the knowledge of lution to the relatives of the departed tiring after a distinguished career that belonging to a progressive union that Rogers C. B. Morton, to the Resident Com missioner in Washington for its inclusion in includes his final position as the first is universally recognized for its social the CONGRESSIONAL RECORD, and to all the director of beaches for Los Angeles Coun leadership as well as for its dedication news media in our country. ty. In this capacity Mr. Fitzgerald helped to the well-being of its members. HECTOR M. HERNANDEZ SUAREZ, initiate developments which made this I am proud to bring to the attention Secretary of the Senate.e service the world's finest lifesaving or of my colleagues this year's winners of ganization. When you consider that 60 the Walter P. Reuther Distinguished million people visited those beaches last Service Award from UA W Local 599. year, under Mr. Fitzgerald's guidance, The honorees for 20 years of elected WORKPLACE FATALITIES you come to understand the magnitude service as union officials are Basil Bar of his accomplishments. rett, Paul Hernandez, Coburn Ferrell, His accomplishments are not limited and Charles McGraw. There also is a HON. JOSEPH M. GAYDOS to his service with the Department of posthumous award for promoting hu OF PENNSYLVANIA Beaches but extend to other civic fields man understanding and brotherhood to IN THE HOUSE OF REPRESENTATIVES as well. Before becoming Director of the late John Pugh. The union's Con Thursday, May 3, 1979 Beaches in 1969, Mr. Fitzgerald served sumer Advocate Award after retirement 10Y2 years in the Chamber of Commerce for serving his union and community • Mr. GAYDOS. Mr. Speaker, accidents of Redondo Beach, Calif., and 5Y2 years is to be awarded to Alfred Federico.• in the workplace, involving many casual in the Torrance, Calif., Chamber of Com ties, are frequently the center of public merce. Inside as well as outside of these attention and concern. But the less ob capacities Mr. Fitzgerald was credited as trusive killer; namely, occupational dis the incorporator of the Town Affiliation TRIBUTE TO ROGERS C. B. MORTON ease, is generally overlooked. Neverthe Association; vice president of the U.S. less, the presence of hazards such as Junior Chamber of Commerce; director toxic chemicals, low-level radiation, et of the California Marine Parks and Har HON. BALTASAR CORRADA cetera, should not be ignored since they bors Association; president of Redondo RESIDENT COMMISSIONER FROM PUERTO RICO are just as deadly in the long run. At Beach Coordinating Council and many IN THE HOUSE OF REPRESENTATIVES this time, I would like to share with my others which are too numerous to list. Thursday, April 26, 1979 colleagues a letter from Mr. Jacob Clay In the light of all Mr. Fitzgerald has man, president of the Industrial Union done as a civic leader and in the preser • Mr. CORRADA. Mr. Speaker, 2 weeks Department of the AFL-CIO, which vation of the environment, I extend my ago, Puerto Rico lost one of its best comments on the involvement of an in deepest commendations to Richard and friends. Throughout his years of public sufficiently staffed OSHA in attempting wish him the best of luck with his re service Rogers C. B. Morton was deeply to search out and remove such hazaror tirement. His career and service to the involved in matters related to Puerto to the safety of the worker: Rico and always showed a deep under community are accomplishments he APRIL 25, 1979. should be proud of; I know his future standing of our problems and great com DEAR REPRESENTATIVE GAYDOS: Each year years will grant him the happiness he has passion for our people. For this he earned hundreds of workers in small construction earned in the course of a very outstand our admiration and friendship. companies are burled alive in trench cave ing career.• On learning of his passing the Senate ins-all because of fallure to observe OSHA of Puerto Rico approved Senate Resolu safety regulations. This was the case In Sioux tion 410, which I would like to insert in Falls, South Dakota when an unshored and the RECORD at this time: unsloped ditch collapsed on one of eight employees of a local firm. CONGRATULATORY MESSAGE TO RESOLUTION 410 Could thJs death have been avoided 1! LOCAL 599 HONOREES I, Hector M. Hernandez Suarez, Secretary OSHA had sufficient staff to Investigate and of the Senate of the Commonwealth of educate ... if small businessmen had not Puerto Rico, do hereby certify: been led to believe that in practice and That the Senate of Puerto Rico in its Ses reality they were exempt from the Occupa HON. DALE E. KILDEE sion of Monday, April 23, 1979, approved tional Safety and Health Act? OF MICHIGAN Senate Resolution No. 410 which reads as Since OSHA went Into effect, injuries re follows: IN THE HOUSE OF REPRESENTATIVES ported by employers In South Dakota have RESOLUTION dropped by more than 15 % for the (mostly) Thursday, May 3, 1979 That this High Body express, on behalf of larger firms. We can only guess about what • Mr. KILDEE. Mr. Speaker, I want to the People of Puerto Rico, the country's deep is happening among the 40,000 workers In sorrow on the passing of the former Con South Dakota shops with 10 or fewer em take this opportunity to commend four gressman and former Secretary of the In ployees because small employers don't have persons who have distinguished them terior of the United States, Rogers C. B. the same reporting requirements. Based on selves with 20 years each of service as Morton. the fact that (nationally) employer-reported elected union officials from UA w Local STATEMENT OF MOTIVES deaths from "accidents" doubled in small 599, as well as two others who are to Rogers C. B. Morton was born in Louisville, shops last year, our guess Is that conditions receive special recognition at the local's Kentucky on September 19, 1914. He was a are at least as bad or worse for these workers. annual honors award banquet on May 6, Representative to the Congress of the United "Accidents" make headlines. Much more 1979. States from 1962 to 1971. In 1971 he was prevalent (but no less serious for the vic appointed Secretary of the Interior, and sub tim) are the unpublicized cases of exposure Local 599 serves the workers of the to toxic materials in small shops that may Buick Motor Division plant in Flint, sequently was appointed Secretary of Com merce. not result In symptoms of disease until Mich., and is one of the Nation's oldest In his functions as Secretary of the In months and years have gone by. UA W locals, receiving its charter on terior as well as when he was Secretary of In Dover, Delaware, both employees of an January 10, 1939. That was only 2 years Commerce, he served Puerto Rico's best in_ automotive radiator repair shop (cited by after the sitdown strikes in Flint that terests in an effective and cooperative man OSHA) were found to have high levels of led to the birth of the UA W-CIO. It ner. He was a member of the Committee that lead in their blood. (Delaware has almost 30, has a long history of strong local lead was to study the problem of the status of ooo workers in shops with ten or fewer em Puerto Rico. ployees.) ership, and annually honors those In Pittsburgh, Pennsylvania, one of the elected union officials who have 20 or Puerto Rico has lost a good friend, and four employees of a lead battery plant (cited more years of elected service. The hon we shall always feel deep gratitude towards by OSHA) was exposed to 21 times the legal orees receive the Walter P. Reuther Dis the departed Rogers C. B. Morton. Be it re limit for airborne lead (based on a standard tinguished Service Award, which is an solved by the Senate of Puerto Rico: replaced this month because it wasn't string appropriate honor to be given in the Section 1.-To express, on behalf of the erut enough). (Pennsylvania has more than People of Puerto Rico, the deep sorrow felt a half million workers In shops with ten or name of the man who devoted his life to by the country on the passing of the former fewer employees.) helping others obtain social justice and Secretary of the Interior of the United States, In Atlanta, Georgia, 7 out of 9 employees enjoy a better life. Rogers C. B. Morton. in a tile factory (cited by OSHA) were 9852 EXTENSIONS OF REMARKS May 3, 1979 seriously exposed to high levels of slllca dust. igan University, developing TV pro Yemen can absorb this equipment de (Georgia has more than a quarter million grams for classroom use. livered ahead of the original schedule. workers in shops with 10 or fewer employ Since the time Atkins became super It is apparent that there will continue ees.) In Wyandanch, New York, one worker in intendent of the Bridgeport-Spaulding to be a debate over the use of the waiver a little factory (cited by OSHA) with three schools in 1964, the system has become authority to expedite arms sales and by employees t hat makes thermometers was ex one of the best in the area, offering com pass the formal congressional review posed to high levels of mercury. (New York plete services for all types of students procedures in circumstances such as has more t han 900,000 workers in shops with and all ages. Through his efforts, the those existing in the Yemen. I urge my 10 or fewer employees.) community education program has colleagues to consider the attached cor Should these workers have been exempted shown constant growth and now offers a respondence in case the issue of the from the protection of the law? cradle-to-grave educational program. waiver comes up again. I know that newspaper clippings, masses The material follows: of statistics, letters and petitions for all kinds Atkins is an officer of the Saginaw of causes cross your desk every day. Much of County Sheriff's Posse, a member of the COMMITTEE ON FOREIGN AFFAIRS, it has to do with complaints about our Bridgeport Chamber of Commerce and Washington, D.C. April 3,1979. government .. . including OSHA. has served on a variety of State com The PRESIDENT, mittees on education. The White House, You are being told to ignore the solid Washington, D.C. impact that the Occupational Safety and Awards that he has received include DEAR MR . PRESIDENT: We write you to ex Healt h Act can have and is beginning to the Outstanding Award for Community press our strong objection to your decision to have in the protection of mlllions of em Education and the Bridgeport Distin use a waiver authority in order to expedite ployees. guished Citizen of the Year Award. the deliverv of F-5 aircraft, M-60 tanks and In the coming months you may be asked Mr. Speaker, Martin G. Atkins has APCs to the Yemen Arab Republic. to vote for amendments t o t he Act or its indeed earned the respect and esteem of While we support modest mllitary sales to appropriations that would remove the ,pro the Yemen Arab Republic, strengthening tection of the government from these work all of us for the quality of the service U.S.-Yemeni ties and protecting important ers. The "evidence" paraded before you will he has given to the community for the interests we have in the Arabian peninsula, be the same old warmed-up trivia about toilet past 15 years, and I appreciate this op we are persuaded that the use of an emer seats and manure in the barn, distortions portunity to seek national recognition gency waiver provision to bypass normal pro about paperwork, and "intrusions." of Mr. Atkins and all his good works. visions of the Arms Export Control Act was We will be asking you not to be swayed I know I am joined by many Bridgeport an abuse of presidential discretionary au by calls for legislation which would condemn area parents and students in offering thority. t he lives and limbs of men and women de thanks and honor to a great American We believe that any reasonable review of pending on you to protect them. the facts in the Yemeni situation would sup If you have any questions, we shall be Martin G. Atkins.• port our view that the discretionary author happy to respond to them. ity was misused. In testimony, the State De Sincerely yours, partment was unable to state what national JACOB CLAYMAN, security interests of the United States were President-Secretary-Treasurer.e USE OF PRESIDENTIAL WAIVER involved in the Yemen. Our intelllgence of the military situation in the fighting between PROVISION TO EXPEDITE DE North and South Yemen is meager; we do not LIVERY OF ARMS TO THE YEMEN know who started the fighting, what the ARAB REPUBLIC situation was on the ground, and who was CONGRESSIONAL SALUTE TO MAR fighting whom. All testimony confirmed that TIN G. ATKINS OF BRIDGEPORT, the Yemenis right now cannot utilize, main MICH., OUTSTANDING COMMU HON. LEE H. HAMILTON tain or absorb any of this equipment quickly, NITY LEADER AND DISTIN OF INDIANA and few, if any, of its m1litary personnel are GUISHED CITIZEN acquainted with the equipment proposed for IN THE HOUSE OF REPRESENTATIVES sale. Thursday, May 3, 1979 Clearly, the use of the waiver to avoid the 30-day review procedure and the expedited HON. BOB TRAXLER e Mr. HAMILTON. Mr. Speaker, I would deliveries cannot affect the current milltary OF MICHIGAN like to bring to the attention of the conflict between North and South Yemen, IN THE HOUSE OF REPRESENTATIVES House some correspondence I and sev which, we gather, has been temporarily, if not eral of my colleagues had regarding the permanently, defused by Arab League media Thursday, May 3, 1979 President's decision to use a waiver au tion efforts. e Mr. TRAXLER. Mr. Speaker, in Oc thority to expedite the delivery of some Congress's intent has always been that the tober of this year the people of Bridge $400 million worth of military equip waiver would be used only in extremely com pelllng cases where the vital national secu port and Spaulding Townships, in my ment to the Yemen Arab Republic. rity interests of the United States were di home State of Michigan, will lose the In our letter to the President of April 3, rectly involved. To exercise this authority in services of an outstanding community 1979, we make it clear that the issue the case of Yemen, where the vital national leader and good friend, Martin G. Atkins. is not arms sales to the friendly Govern security interests of the United States simply At that time Mr. Atkins will retire from ment of the Yemen Arab Republic but were neither apparent nor explicitly stated, his post of superintendent of Bridge rather the use of the waiver provision, undermines the legitimate use of the waiver port-Spaulding schools, where his dy provision. If the administration felt a need indeed the first such use of the waiver to act t o support the Saudis and to show our namic and energetic endeavors on behalf provision since the Arms Export Control firm resolve, we believe that there are other of the schoolchildren of my district have Act became law in 1976. appropriate steps which would not distort benefited the entire communitv, and In its reply of April 25 for the Presi the law. It is difficult for Congress to provide will continue to benefit it for years to dent, the State Department defends the presidential discretionary authority for in come. use of the waiver provision as providing stances where emergencies exist and national Atkins has been superintendent of an important reassurance to the Yemeni security interests are involved if that author Bridgeport for 15 years, and has served Government and as a signal to regional ity is misused. in the educational field for a total of 32 We appreciate your early consideration of friends that the United States is a de this important matter o! deep concern to us years. He is a native of Detroit, and re dependable partner in their quest for and many of our colleagues. ceived his degrees from Hillsdale College stability and enhanced security. With best regards, and St. Lawrence College in New York. Congress intended that the waiver Sincerely yours, He taught for 2 years at North Branch in provision be used only in extremely Les Aspin, Michael D. Barnes, Don the late nineteen-forty's, and then moved compelling cases where the vital national Bonker, Dante B. Fascell, Floyd J . on to Carson City in 1950 as high school Fithian, William H . Gray III, Lee H . security interests of the United States Hamilt on, Leon E. Panett a, Donald J. principal and teacher. were directly involved. The situation be Pease, Joel Prit chard, Benjamin S. In 1960 Atkins became the director of tween North and South Yemen remains Rosent hal, Stephen J. Solarz, and Educational Television for Central Mich- unstable and it will be some time before Gerry E. Studds May 3, 1979 EXTENSIONS OF REMARKS 9853 THE WHITE HOUSE, a. dependable partner in their quest for sta (R-Me.), a. man of progressive mind, said Washington, D.C., April 10, 1979. b111ty and enhanced security. Our action was it plainly: " . . . if our goal is to stem the Hon. LEE H. HAMILTON, support! ve of Arab efforts to make the cease growth of the bureaucracy, how can we ra U.S. House of Representatives, fire hold and has ongoing impact in helping tionalize the creation of a. new department Washington, D.C. deter renewed PDRY aggression against the in view of the competing and perhaps equally DEAR CONGRESSMAN HAMILTON: The Presi YAR. important demands of other groups for simi dent asked me to acknowledge his receipt of Sincerely, lar representation?" your letter of April 3, along with twelve of DOUGLAS A. BENNETT, Jr., He might well also have asked his col your colleagues, regarding the President's Assistant Secretary for Congressional leagues to glance at the empire bullding decision to use a waiver authority to expedite Relations.e greed of the new Department of Energy a.s certain military sales to the Yemen Arab it pleads for ever more personnel. Republic. The biggest push for the Department of The President has been apprised of your ANOTHER MONSTROSITY Education, of course, comes from the Na conviction that the use of an emergency tional Education Association, a. once pro waiver provision in this case was an abuse A-BORNING fessional organization turned labor union. of presidential discretionary authority. With its vast lobbying capacity, NEA will The President has the matter under con unquestionably dominate any Department sideration, and has asked me to share your HON. DAN QUAYLE of Education that comes into being. And the letter with several of his advisers for review. OF INDIANA consequence wm be uniform, stereotyped, You should receive a further response shortly. IN THE HOUSE OF REPRESENTATIVES nationalized public education throughout Sincerely, the land. FRANK MOORE, Thursday, May 3, 1979 It might be better and cheaper just to turn Assistant to the President for Congres • Mr. QUAYLE. Mr. Speaker, it is ap the job over to t he NEA at the outset and sional Liaison. parent that the House soon will have have done wit h it.e DEPARTMENT OF STATE, the opportunity to consider the creation Washington, D.C., April 25, 1979. of a cabinet-level Department of Educa tion. The House Government Operations Hon. LEE HAMILTON, CHIEF JOHN WUSSTIG RETIRES Chairman, Subcommittee on Europe and Committee by a narrow one-vote margin Middle East, Committee on Foreign Af has reported the bill. The Senate last AFTER A FINE CAREER fairs, House of Representatives. week passed the measure. DEAR MR. CHAIRMAN: Your letter of April 3, Prior to taking this giant step to more addressed to President Carter has been re bureaucracy and greater Federal involve HON. ANTONIO BORJA WON PAT ferred to the Department for reply. You wrote OF GUAM to object to the President's decision to use ment in education, I want to bring to my his waiver authority under the Arms Export colleagues attention a thoughtful column IN THE HOUSE OF REPRESENTATIVES Control Act, to expedite the delivery of F-5 written recently by Ben Cole, the Wash Thursday, May 3, 1979 aircraft, M-60 tanks and APCs to the Yemen ington correspondent for the Indianap Arab Republic (YAR). olis Star. It merits serious consideration. • Mr. WON PAT. Mr. Speaker, I rise to We welcome the reassurance that you and The column follows: announce the retirement of one of the other signatories of the letter share our [From the Indianapolts Star, Apr. 19, 1979] Guam's best known public servants, Mr. concern for the security and stab111ty of the John Wusstig, chief of the Department Arabian Peninsula and recognize the im ANOTHER MONSTROSITY A-BORNING of Public Safety's Fire Department. portance to that objective of providing ap (By Benjamin R. Cole) Chief Wusstig has served the people propriate amounts of defensive weapons. The The United States Senate is about to pass Administration had concluded by Septem of Guam with the greatest distinction a bill to create another federal monstrosity with 35 years of hard work on their be ber 1978 that it was necessary to provide F- to be known as the Department of Education. 5E aircraft, C-130 aircraft, tanks and APes There is some small hope the House Gov half. to the YAR. We began informal consultations ernment Operations Committee will bury this In a recent interview in the Pacific and we were prepared to move forward with unfort unat e measure. But a wise gambler Dally News, Chief Wusstig noted his the formal notification to tihe Congress at would put his money on ultimate creation many proud accomplishments and said that time. Unfortunately the Congressional of this additional burden on the weary backs that after years of having what may be calendar did not allow for the full fifty days of the nation's taxpayers. the "hottest" Job on Guam, he plans to required for the notification period and the The lobbyists for this new cabinet depart enjoy his much deserved retirement by decision was made to delay notification until ment are rich and vocal, whereas the rest of tbe new Congress convened in 1979. us merely grumble and expect the worst. fishing, farming, and hopefully offering The informal notification process was be There might stm be time if enough voters his excellent skills as a consultant to gun in a routine manner on February 16, 1979 wrote their congressmen. local firms. for the F-5s, the M-60 tanks and the APCs. A Department of Education would be the I have known and admired John Wus On February 23, the PDRY forces launched recognition of what long was dreaded-fed stig for many years. He began his public a coordinated attack on the territory of the eralization of public Instruction. Uncle Sam, service during the most trying of times YAR and rapidly took possession of some even now, sits on every local school board, strategic YAR territory. The Arab states in during the days after World War II. He quick to scowl 1! national policy is not was one of the original members of the ~fforts which we supported throughout, tried slavishly followed unsuccessfully to effect a ceasefire on March Do as Uncle says or your 1mpMted aid will Guam Combat Patrol who had the dan 8. In this situation it was felt that the ex be cut off, your elementary-secondary educa gerous job of rooting out the survivors of pedited deltvery of the equipment was tm tion assistance wUl dry up, your library grant the Japanese occupying force on Guam portant and the President decided that an wlll disappear, your school 1unch program following the return of American troops emergency existed involving the national in wlll go glimmering. in 1944. terest which necessitated his use of his Debate on the Department of Education When he transferred to the fire de waiver authority and the congress was so b111, st111 pending in the Senate, has not partment in later years he became a notified on March 9. been an absorbing subject of public interest, As you are aware, the Arab League did coming as it did with the Three Mile Island leader in the drive to make that force the manage to implement the second ceasefire nuclear crisis and other front-page concerns best that could be created. Through the agreement in mid-March and the PDRY has of more immediacy but with less threat to years, John Wusstig and his brave men withdrawn its troops !rom YAR territory. The freedom. have fought over 58,000 fires, many of prospects for sustained peace remains un Sen. Jesse Helms (R-N.C.) managed to get them major ones. In every instance, certain, however, and we belleve the YAR a. few moments of interest focused on the Chief Wusstig's able direction brought stm faces a serious threat from PDRY. Mean b111 when he attached to it an amendment about a speedy end to the danger. wh1Ie most of the equipment involved has ar to restore prayer in the public schools. His John Wusstig may retire, but in many rived in North Yemen and North Yemeni amendment was subsequently transferred to mllltary are being trained in its use. It is a Supreme Court jurisdiction measure where respects, his legacy of competent public the view of the Administration that the it can more easily be squelched. service will never leave the Guam Fire expedited deltvery of the equipment was an The Senate Committee on Government Af Department. He will be a tough act to important reassurance to the YAR Govern fairs which took the Department of Educa follow and we can all be proud to have ment during the PDRY attack and served as tion bill to the floor issued a report with had a man of such immense dedication a signal to regional friends that the U.S. 1s only one strong dissent. Sen. Wllliam Cohen serving the people of Guam. CXXV--620-Part 8 9854 EXTENSIONS OF REMARKS May 3, 1979 At this time I insert the newspaper tually open his own fire protection consult were forced to rely entirely o.n explicit gen ing firm.e eral taxes." article in the RECORD : But, all that aside, the Journal went on CHIEF JOHN WUSSTIG COOLS A HOT CAREER to conclude, there simply are no cogent rea (By Paul Hoversten) BRINGING BACK THE DRAFT sons for bringing back either draft regis John c. wusstig says he's used to taking a tration or the draft, itself. lot of heat these days. "The truth is that all four of the active But now, says the retiring chief of the forces have generally been able to maintain Department of Public Safety's fire opera HON. RON PAUL authorized strengths since conscription tions, things should start cooling off. OF TEXAS was abolished. Only in specialized areas wusstig, 51, estimates that he and his de IN THE HOUSE OF REPRESENTATIVES such as medicine and the reserves has there been any problem, and the shortfalls there partment in Tamuning have responded to Thursday, May 3, 1979 58,000 grass and house fires during his 35 can be eliminated whenever Congress and years of chief. the administration make up their minds • Mr. PAUL. Mr. Speaker, I would like that they really want to do so." He stepped out of the $26,100 a year job to call the attention of my colleagues to with DPS last week, turning over the reins In order to put the mistaken call for re an editorial that appeared in the Colo imposition of the draft in its true perspec to Acting Chief Jesus R. Mesa. Looking back, Wusstig recalls that the rado Springs Gazette Telegraph on tive, one has only to suggest that Colorado Springs police and fire departments be biggest blaze on Guam was the 1956 bomb April 15, 1979. The recent House sub fire at the Lon Massey scrapyard, which committee vote to reinstitute registra staffed with conscripts and at pay levels was located behind Atkins Kroll in Tamu tion after the 1980 elections and to re commensurate with what drafted service ning and stretched back to Tuman Heights. quire the President to report on the pos men have typically been paid.e Massey had been using compressed air to sibility of bringing back the draft next disarm 500 pound bombs leftover from the January indicate that there are those GOP BUDGET CUTS DEFICIT AND war when the fireworks started. in Congress who are quite willing to im Wusstig and his men had extinguished all PROVIDES FOR 5 YEAR $100 BIL but the last batch of bombs when he suf pose an exorbitant tax on our youth LION TAX CUT fered his first and only accident. in the name of "national security." "There was one big explosion," he recalls. BRING BACK THE DRAFT? "I don't know what happened." Although few, if any, will openly admit HON. BUD SHUSTER Thirty minutes later, after hospital treat it, most proponents of reviving the military OF PENNSYLVANIA ment for a sprained ankle and a concussion, draft favor conscription over voluntary re IN THE HOUSE OF REPRESENTATIVES Wusstig was back at the fire with hose in cruitment as a means of manning the hand. armed forces for economic, rather than Thursday, May 3, 1979 It took three days to extinguish the Mas practical or altruistic, reasons. e Mr. SHUSTER. Mr. Speaker, theRe sey fire thanks to the GovGaum fire depart Asked for their reasons for resuming the publican Policy Committee, which I ment and the milltary, he says. draft, its advocates usually cite the claim have the honor to chair, has unani Born in Agana in 1928, Wusstig joined that the all volunteer force "isn't working;" civil affairs as a messboy when he was 16 that is, isn't getting enough and the right mously endorsed a Republican alterna after he dropped out of high school at the kind of personnel. Therefore, goes the pro tive to House Concurrent Resolution 107, old temporary school in Anigua. draft argument, conscription should be re the first concurrent resolution on the A year later, he .1oined the police force as imposed in the nation's best interest. budget for fiscal 1980. one of 17 men on the original combat patrol. However, when it is pointed out that man The Republican alternative is a re A hard-nosed cop, he says he usually issued power for the armed forces is subject to the sponsible, sensible 5-year plan which is between 50 and 100 traffic citations within economic laws of supply and demand, just a positive response to the overwhelming an eight hour day. as is everything else, and that if pay and sentiment of the American people for Wusstig was promoted to sergeant in 1951. other incentives for those forces are set at When the Navy turned over the fire de the market level, volunteers aplenty will be lower taxes and a balanced budget. partment to GovGuam, he volunteered for forthcoming, those who favor reimposition Mr. Speaker, I am inserting a copy of the force and, in 1955, became a police lieu of the draft change their tune. the Republican Policy Committee posi tenant and assistant chief of fire operations. Rebelling at the proposition that volun tion endorsing the Republican alterna Eight years later, he became a captain tarism will always work at some level of tive to the first concurrent budget and a chief. compensation, draft proponents wax indig resolution for fiscal 1980 in the CoN "We only had 55 personnel then, now we nant at the idea of paying whatever it will GRESSIONAL RECORD. I recommended it to have 159," he says. take to get the desired number and quality my Democrat colleagues and ask your Other improvements since then are five of volunteers. "What if we have to pay very additional stations bringing the total to high wages to get enough of the right qual support for its passage. nine. The department now has six ambu ity of volunteers?" draft advocates com The Republican policy committee lances, up four from when he joined the fire plain, shifting gear. "Why, the nation statement reads as follows: department. couldn't afford it!" A REPUBLICAN ALTERNATIVE-TO THE FIRsT "It's quite an improvement. But we still As the Wall Street Jour.nal reminded pro CONCURRENT RESOLUTION ON THE BUDGET have a long way to go in new types of train ponents of the draft just recently, such a FISCAL 1980 ing and modern tactics of firefighting," he reaction "reflects a pervasive and funda The Republican Policy Committee opposes says. mental fallacy about conscription. If we passage of the First Concurrent Resolution He says he's worried that the advent of have to pay very high wages to attract vol on the Budget for fiscal 1980 and strongly tourism on Guam may bring super high unteers, that fact tells us that defense man supports the passage of a Republican Alter rise structures. And his department may not power is very costly, but conscription does native-The First Year of a Republican Five be able to stop one of those fires. not enable us to avoid those costs. All con Year Budget Plan-a positive response to the "I'm not trying to threaten the condos and scription does is decide who will pay the pubiic's desire for balanced federal budgets high-rises, but it's going to be a disaster," he costs. We cannot avoid the manpower costs and lower taxes. says. of defense by substituting conscription for The Republican Five-Year Budget Plan Present fire equipment only permits a jet voluntarism." will provide responsible spending restraint 10 of water up to stories, he says. For "conscription," the Journal went o.n in 1980 and balances the budget in 1981 with And some building owners have neglected to emphasize, "is a form of taxation. Con modest surpluses in 1982, 1983, and 1984. In his suggestions on fire prevention devices scription simply imposes the burden of addition, the Republican Five-Year Plan will within their buildings, he adds. taxation for defense (as far as obtaining reduce the tax burden to the average of the Wusstig says he's made a lot of enemies by manpower is concerned) on our youth rath post-Korean war years (18.6 percent of blowing the whistle on those who won't take er than the general public." GNP). the proper measures to protect their busi Once we understand that "conscription is H. Con. Res. 107, the First Concurrent nesses from fire. a tax," the Journal continued, it is easy to Resolution on the Budget for fiscal 1980, "The key to the job is always maintain a see why some congressmen (and others who demonstrates clearly that the Democrat coolness. There's nothing in this line of work want to increase "social spending") find it controlled Congress lacks the resolve to cut that scares a man if he knows what to do. appealing; especially at a time when there federal spending in response to the over "With all our experience, we've never had is great popular pressure to reduce taxes. whelming sentiment of the American people. a fire we couldn't put out. There may be a In other words, by reimposing the draft, The fiscal 1980 Congressional Budget Reso million fires in 100 years, but no one fire is and paying conscripted youth less than lution proposes increasing federal spending alike," he says. market wages, such a reinstitution of a above the President's request to a level of Wusstig, married for 29 years to the for specialized hidden tax noted the Journal, $533 billion and calls for approximately $4 mer Arlene Leddy of Dededo, has six children "will enable them to preserve a larger gov billion more in tax revenues. Rather than and 13 grandchildren. ernment (and government outlays for "so cutting back on spending and moving He plans to fish, farm, and hunt, and even- cial" causes) then would be possible if they toward balancing the federal budget the May 3, 1979 EXTENSIONS OF REMARKS 9855 Democrats propose cutting the deficit by bilities, and increases spending for social proposes an alternative budget which forces increasing taxes. This is a fiim-fiam of the welfare programs. It proposes an inexcusably Congress to make the hard choices on spend American taxpayer. large deficit of $25 billion in view of the ing priorities for fiscal 1980 which are neces The First Concurrent Budget Resolution whopping tax increases which would drive sary to achieve a balanced budget in 1981 for 1980 offers precious little restraint and up revenue collections to record peacetime and make a start at lessening the tax burden more than a double dose of tax increases. It highs and in the fifth full year of economic on the American taxpayer. The following severely cuts defense spending, furthering recovery. table illustrates by comparison the Republi the decline of our national defense capa- The Republican Five-Year Budget Plan can Alternative:
(In bill ions of dollars)
H. Con. Res. 107, Republican's 5-yr budeet plan President's Budget Committee ------=--=----- Mar. 15 request recommendation 1980 1981 1982 1983 1984
Revenues ______------____ · --- __ ------__ •• ------_ 503.9 507.8 508.2 555.0 601.0 Budget authority __ --· ------______·-- __ -- ______628.0 667.0 615.0 608.4 594.2 643.7 689.4 736.3 776.8 Outlays ____ --· ______-- ______------_------532.3 532.7 523.4 554.0 590.0 622.0 656.0 Deficit._------.. ------·------28.4 -24.9 -15.2 +1.0 +11.0 +6.0 +11.0
The Republican Alter :u~tive trims 1980 and dealing" to special interests. These ing. Indeed, we should be thankful about revenues by an amount almost sufficient special interest programs are put in the the increased numbers of people over the to offset the next scheduled round of Social budget with relatively modest spending Security tax increases as well as prevent impact in one budget year but large doses last 6 months who have been allowed to inflation from pushing taxpayers into of budget authority to spend in future emigrate. But, we must also remember higher brackets. To achieve the goal of a years. By then, these programs have de that in each of these cases the lives of balanced budget by 1981 the Republica.n veloped powerful constituencies which make real people are involved. They are not Plan restraints the growth in federal spend spending for them "uncontrollable" or simply numbers on an emigration tally ing to about 5.5 percehc per year over the compounds the task of cutting back on sheet, or bargaining chips to be traded five year period. To achieve the goal of eliminating the programs. for political concessions. We cannot be reducing the tax burden to the average Qf The Republican position is that every the last 25 years (18.6 percent of GNP), federal budget ought to be "austere," taking swayed from the task of striving to help the Republican Plan programs a series of as little in taxes as possible from the pro the ever-increasing number of people tax cuts totaling $100 mlllion as follows: ductive segments of out society and pro still in the Soviet Union who are seek Republican tax cuts viding funds for only the most essential ing the right to emigrate. federal programs and activities. We also cannot allow ourselves to over [Dollars in b1llions) The Republican Alternative Five-Year 1980 estimate the victory ga.ined by the re $15 Budget Plan presents the Congress and the lease of the five individuals who were al 1981 17 American people with a clear and distinct 1982 22 choice in economic and fiscal policy. Pass lowed to leave the Soviet Union last 1983 23 ing the first year of this Republican Alter week. Each of these men had served 1984 23 native is the kind of response the American more than one prison term. The United This would return the level of taxation people want and deserve.e States had requested that other individ on the American people to where it was in uals, who were only serving their first 1976 before President Carter took office. prison terms, be allowed to leave. How The Republican Alternative allocates to our THE CASE OF YAKOV ever, their release was refused. There national security tne kind of resources and KARMANITSKY fore, let us immediately turn our efforts attention it deserves if we are to remain toward helping those who continue to be a peaceful a.nd deterrenrt; force in the wocld community. HON. JAMES J. BLANCHARD persecuted and denied their basic rights. In the first skirmish of the "Battle of the OF MICHIGAN One such person is Yakov Rakhlenko Budget for 1980" the American taxpayer is IN THE HOUSE OF REPRESENTATIVES Karmanitsky of Moscow. I am sad to say the loser if this First Concurrent Budget that this is the second year that I have Resolution is passed. The Democrat major Thursday, May 3, 1979 related the plight of Mr. Karmanitsky ity refuses to heed to the political realities e Mr. BLANCHARD. Mr. Speaker, I am during a Soviet Jewry vigil. It has now Qf staggering inflation, increasing taxes, a been 7 years since he and his mother weakened national defense and a pervasive once again pleased to participate in a federal government. Instead, they continue vigil sponsored by Congressman JAMEs first applied to emigrate from the Soviet to accelerate the redistribution of income HoWARD and the Union of Councils for Union in order to join his sister in Is and wealth from productive segments of Soviet Jewry on behalf of Jews who are rael. our society to the non-productive. trying to emigrate from the Soviet Union. Hopefully, by "shattering the silence" When President Carter took office, infla The vigil is very appropriately called through vigils such as these we can help tion was running at an annual rate of 4.8% "Shatter the Silence, Vigil 1979." The to shatter the walls of oppression and in and declining due to the Ford Admlnistra Te justice facing Yakov Karmanitsky and tion 's steady and restraining economic public outcry from the free world policies whicn were producing a solid non mains our most effective tool in the on many others like him in the Soviet Union inflationary recovery. Since then, the going effort to convince Soviet author today. We must remember the thousands Democrat budgets, despite their character ities to provide their citizens with the of individuals-many separated from ization as "lean," "tight" and even basic right to emigrate. their families-who has still not been al "austere," have in truth been highly stimu The vocal expression of free citizens lowed to leave the Soviet Union. I urge lative, devoid of sound fiscal policies, and all over the world speaking out against my colleagues to continu.e to speak out have produced runaway inflation and an for people like Yakov Karmanitsky until overheated economy. unjust emigration practices in the Soviet Union has a twofold impact. First, we everyone seeking their right to emigrate The Congressional Budget process enacted is given the freedom to leave.• in 1974 was designed to reestablish Con continue to embarrass the Soviets by gress' control of the purse, to decide the placing their oppressive and blatantly total levels of spending and taxing each unjust actions under the spotlight of year, so that Congress could make compre world scrutiny. Second, we extend the hensive, rather than piecemeal, decisions rare and precious gift of hope to all of A PEOPLE'S ENERGY POLICY about fiscal policy and the size of the fed those people who bravely and relentlessly eral government. continue to demand their right to emi HON. RON PAUL The Democrats have subverted the budget grate. Most of those people either suffer OF TEXAS process to their own purposes as evidenced under the yoke of harsh prison sentences by the Third Budget Resolution for fiscal IN THE HOUSE OF REPRESENTATIVES 1979, piggybacked onto the First Budget or they are forced into a confusing and Resolution for 1980, which increases federal painful waiting game. Thursday, May 3, 1979 spending for this current fiscal year. The We must be thankful for the recent • Mr. PAUL. Mr. Speaker, recently, I Democrats are also subjecting the budget Soviet decision to allow a number of peo sent a survey to all the households in process to the dangerous game of "wheeling ple to emigrate after long years of suffer- the 22d Congressional District. Among 9856 EXTENSIONS OF REMARKS May 3, 1979 its more than 50 questions were 6 on to pay tribute to this major contribution vehicles are being driven more miles on av energy policy. Over 13,000 people re to democracy in the world. Even more so, erage than they were five years ago. And, sponded, and the energy policy they out we honor the event since the United even with recent improvements in auto States was able to build and grow on its mileage performance, overall gasoline con lined for our country makes infinitely sumption is up-nationally, about 4 % over more sense than what the administration own constitutional government, while what it was just a year ago. proposes. The people voted against gaso Poland, as early as 1795, was subjected Worldwide oil production has not kept line rationing, and for deregulation of oil to partitions and exploited by neighbor pace wit h rising demand. Iranian production and natural gas prices. They also sup ing countries. This day also serves as a is 2 million barrels a day less than it was a ported going full speed ahead on nuclear reminder of the close links between this year ago. Saudi Arabia, which owns more oil energy, and ending the "environmental" Nation and the free Poland that existed than any other country, doesn't want to in restrictions that hamper efforts to pro prior to the outbreak of World War II. crease its output to make up the difference. Saudia Arabia and other members of tbe vide the energy we need. A good-sized Although Poland is clamped in the grip OPEC cartel are in the happy position of plurality even opted for abolishing the of the Soviet bloc today, the Polish people being able to make more money while sell Department of Energy. in free countries proudly commemorate ing less oil. International contract prices on There is more wisdom among the a day for Polish democracy and freedom. oil call for a fioor price of $14.54 a barrel. people than all the bureaucrats and poli They look forward once again to the Oil sold free of the fioor price is in some ticians put together. It behooves us to time when they will have true independ cases fetching $33 a barrel. listen and learn from the energy policy ence both in the national life of Poland The conventional economic wisdom used to be that at some theoretical point-say, Texans in the 22d district advocate. and in the individual lives of its citizens. when gasoline reached 60 or 70 or 80 cents a Here are the results: This day, which should belong to every gallon-demand would fall and the supply (In percent) Pole, not just those living apart from the situation would stabilize. Gasoline is now Don't mother country, gives encouragement to galloping toward a price of $1 a gallon. De Do you support Yes No know the citizens of Poland in their continu mand hasn't abated. Consumption has, or 1. Rationing gasollne? ______33 60 7 ing struggle for their democratic rights. will, simply because there is less g·asollne 2. Deregulating oil prices?_ ___ 72 19 9 We must joint in the hope that the Polish available to consume. The issue that the 3. Deregulating natural gas people will yet realize the attainment of country must begin to face is whether that prices? ------73 18 9 the ideals and spirit of their May 3d gasoline can be distributed equitably. 4. Abollshlng the Department President Carter is pushing hard for of Energy? ______49 37 14 Constitution.• standby gasoline-rationing authority. That 5. Full speed ahead on nu- authority would be used only if the supply clear energy?______74 15 11 situation significantly worsened, and it 6. Ending environmental con- would be used to provide all drivers with at trols to ease our energy THE GAS SHORTAGE IS REAL least an assured basic allotment of fuel. Yet problems? ------53 38 9 Congress has been inclined to approach the request for standby authority as if it were • HON. LIONEL VAN DEERLIN the plague, apparently fearing the political OF CALIFORNIA consequences of even such a prudent and essential step as providing for the contin ANNIVERSARY OF THE TRADI IN THE HOUSE OF REPRESENTATIVES gency of rationing. Thursday, May 3, 1979 On Tuesday the House Commerce Com TIONAL INDEPENDENCE DAY OF mittee sent the standby rationing plan to POLAND e Mr. VAN DEERLIN. Mr. Speaker, the the fioor without recommending its passage. myth persists that the gasoline shortage That ls a slight improvement over its earlier does not really exist but instead is some vote to kill the request entirely. Carter HON. EDWARD J. DERWINSKI warned again this week that without a OF ILLINOIS thing contrived by the Government and the oil companies. standby plan it would take six or seven IN THE HOUSE OF REPRESENTATIVES months to prepare responsive measures to In a pithy editorial published in to deal with a gasoUne emergency. That warn Thursday, May 3, 1979 day's editions, the Los Angeles Times ing has to be taken seriously by Congress, e Mr. DERWINSKI. Mr. Speaker, I demonstrates how rising demand fo~ gas and by the public. would like to take this opportunity to at home, coupled with diminishP.d sup It will be a long time at best before the call the attention of the Members to an plies from abroad, have put us in a bind gasoline-supply picture improves. It could that is all too real. be a short time before it worsens. We had important date in the history of Poland. better be prepared.e Today, Poles throughout the free world Notwithstanding that the price of a celebrate the historic Polish national gallon of gas is fast approaching $1, holiday-the Polish 3d of May Consti consumption is up 4 percent over what tution Day. This is an important re it was a year ago. And there are 20 mil ELIAS D. CHINONIS TO BE HONORED minder to all, that Poland was one of the lion more vehicles on the road today AS SUPREME SECRETARY OF first pioneers of freedom in Europe. than there were in 1974, the year of the AHEPA It was on May 3, 1791, that Poland last shortage. adopted a constitution that led to a com The editorial concludes: plete reform of its internal life and as It wm be a long time at best before the HO-M'. DALE E. KILDEE serted its democracy. But it came too gasoline supply picture improves. It could OF MICHIGAN late, and could not put a halt to the third be a short time before it worsens. We ,had IN THE HOUSE OF REPRESENTATIVES partition of Poland in 1795 by Russia, better be prepared. Thursday, May 3, 1979 Prussia, and Austria. We in Congress had also better be pre Even though the constitution did not pared. e Mr. KILDEE. Mr. Speaker, I am have a chance to take hold, this was one The editorial follows: pleased to bring to the attention of my of the brightest events in Polish history. THE END Is NOT IN SIGHT colleagues a dinner to be held May 5, Through the decades, the spirit embodied The gasoline shortage of 1979 is different 1979, in Flint, Mich., in honor of Elias in the Polish Constitution has never died from the shortage of 1974 in one crucial re D. Chinonis. He is the supreme secretary in the hearts of Poles who have remained spect. When motorists waited in lines at of District 10 of the Order of AHEPA. in their native land or who have mi service stations five years ago-if they were District 10 includes all of the State of grated to other countries. lucky enough to find a line to wait in-they Michigan and the Toledo area. The din While many invasions and subsequent at least had the consoling thought that at ner honoring him is being held by Flint partitions have prevented Poland from some point the Arab oil embargo would end, Chapter 141 of the Order of AHEPA, of developing her democratic ideals into a and that fuel supplies would in time return which Mr. Chinonis is a member. permanent form of government, these t o normal levels. Today there is no such Mr. Chinonis was born in Greece and consolation. came to Flint in 1940 at the age of 15. setbacks have failed to break the spirit The likelihood is that the nation has en of her people. Poles everywhere are con t ered a period of steady gasoline shortages, He served in the U.S. Army during World fident that their future will see a fiorish and the reasons aren't hard to find. There War II, then returned to Flint where he ing Poland, inspired by her great tradi are, to begin with, a lot more vehicles on the has remained since as an active citizen tions and ideals. road today than there were in 1974, an esti in the business, civic, religious, and po It is particularly fitting for Americans mated 20 million more of all kinds. Those litical affairs of the community. May 3, 1979 EXTENSIONS OF REMARKS 9857 He became a member of the Order of District in Brooklyn, N.Y., which I repre Growth in taxation as a percentage of AHEPA in 1947 and has served in vari sent, consists of more than 467,000 people income 1 ous chapter offices, including president. residing in a mere 9-square mile urban In addition, he has served in various area-indeed, one of the most densely Average district lodge offices, including gover populated districts in this country. Yet, worker's taxes as nor. On the national level, he has served despite living in the inner city and de Tax Freedom percent of as supreme governor and is now serving spite their geographic remoteness from Day earnings as supreme secretary. Alaska, the vast majority of my constit Mr. Chinonis served as president of uents who have expressed their views to Year: the Assumption Greek Orthodox Church, me on the Alaska lands legislation, 1929 ______February 9 10.8 and was chairman of the building fund strongly support the Udall-Anderson 1939 ______~arch 5 17.4 when the church was built about 15 substitute. 1949 ______~arch 24 22.7 years ago. He is president of an auto I urge my colleagues to join me in sup 1959 ______April 15 18.6 1969 ______~ay 3 mobile dealership in Flint, and well re porting the Udall-Anderson substitute to 33.5 1979 ______~ay 6 spected in the business community. On retain the wild and beautiful Alaskan 34.3 a lighter note, he also is an avid golfer lands for future generations; to conserve and this year he won the AHEPA Na them forever for the benefit of all Ameri 1 Source: Tax Foundation, Inc. tional Invitational Golf Tournament cans; and to protect them from exploita Calculated in another way, the typical held in Las Vegas. tion by special interests.• American worker labors 2 hours and 45 min I am pleased to join his many friends utes per a-hour day to pay his tax oougat10ns. and admirers in honoring him this TAXES ARE MOST EXPENSIVE ITEM IN FAMILY week.e BUDGETS AVERAGE AMERICAN WORKS 2 The American people are justifiably HOURS, 45 MINUTES EACH DAY TO outraged that taxes owed to government ALASKA LANDS FOR FUTURE GEN PAY THE TAX MAN-MAY 6 IS authorities represent a larger portion of ERATIONS WILL BE PROTECTED "TAX FREEDOM DAY" their family budget than any other BY UDALL-ANDERSON SUBSTI item-including housing or food-as the TUTE following table KEY MINERALS Percentage of Percentage of Percentage of Percentage of world reserves world production world reserves world production Cobalt______------Zaire ______30 Zaire ______53 Chrome ______South Africa ______74 South Africa ______26 New Caledonia ______19 Zambia ______9 Rhodesia ______22 Rhodesia ______8 U.S.S.R ______------14 u.s.s.R ______1 U.S.S.R. ______36 Manganese. __ ------_ South Africa_------45 South Africa ______22 Platinum group metals'----- U.S.S.R ______16 U.S.S.R. ______31 U.S.S.R ____ ------.--_ 38 U.S.S.R ______35 Gold ______South Africa ______49 South African ______60 u.s.s.R ______22 U.S.S.R. ______21 t Platinum, palladium, rhodium, etc. Source: OECD, Royal Institute of International Affairs and Economist Intelligence Unit. ZAMBIAN MARAUDERS of annual total supply. But since the autumn eluding canada, western Europe, Yugoslavia, Some 60 percent to 70 percent of "normal" of 1977, the USSR mysteriously has remained South Africa, Australia, New Zealand, Japan cobalt comes from Zaire and Zambia., so it out of the market and the metal's price shot and Israel. The U.S. currently imports seven isn't difficult to find the reasons for the up from $145 to more than $350 an ounce. of its 24 essential minerals from South surge. The invasion of Zaire's mineral-rich Apparently, nearly 18 months since its with Africa.. The U.S. Bureau of Mines' average Shaba. Province (formerly Katanga) put the drawal, Soviet platinum sales are holding import returns from 1973 to 1976 show that world's largest cobalt producer, Gercamines, well below normal-no explanations are the U.S. bought 56 percent of its vanadium out of action. Since then, the metal has been forthcoming. In recent months, the Soviet imports from South Africa, 30 percent of its in heavy demand; spurring buyers is the fact Union also has withdrawn from the gold chromite (chrome ore), approximately 20 that Zaire's troubles are far from over. Zam market. percent of its gold, 33 percent of its plati bia., another major producer of cobalt, also Against this backdrop of endangered or num group requirements and 10 percent of is in a. shaky state, with guerrillas (based disappearing supplies, the U.S. General Serv its manganese ore. Between 30 percent and there for invasions into Rhodesia) maraud ices Administration bas been reviewing 35 percent of its ferro chromium and ferro ing the country. Copper as well as cobalt has stockpile goals, and the new budgets are manganese have been imported directly gotten a lift from these African woes. expected to be disclosed soon. All told, 12 from South Africa.. Bureau of Mines figures Sometimes, of course, even without the commodities were selected for detailed ex also show that 47 percent of U.S. cobalt spur of catastrophe, a. major producing na amination: aluminum, asbestos, chromium, imports come from Zaire and 24 percent from tion decides to -withdraw from a market. The cotalt, copper, iron, lead, manganese, nickel, Belgium. Actually, the Belgian cobalt is classic example occurred last year in plati phosphate, silver and zinc. mined in Zaire and processed in Belgium. num. In normal years, the Soviet Union sells MINERALS FROM AFRICA Price stab111ty of strategic commodities 1s 600,000 to 700,000 ounces of platinum to Of non-fuel mineral imports in 1977, 78 as much a factor in U.S. raw materials policy Western consumers. That's about a. quarter percent came from developed countries, in- as supply. Allan E. Wendt, director of the May 3, 1979 EXTENSIONS OF REMARKS 9859 State Department's Office of International not be government controlled. Instead, it lation, or improved detecting and reporting commodities, told the United Nations Asso may encourage industry to do the job via methods. The rise in the incidence of cancer ciation of New York last week that the U.S. tax incentives. in this century is real, and it is of real con aims to help "stab111ze the export earnings of However, Herr Alfons Goedde, spokesman cern. developing countries," while securing for the of the special steels subsidiary of the Thys Fortunately, not all the news is bad. Ac U.S. an ample supply of strategic commodi sen steel group, has challenged this ap cording to one independent group, the overall ties at a reasonable price. In international proach. He advocates that the government incidence of cancer has decreased slightly commodities negotiations, he said, talk has finance a chrome stockpile equivalent to over the last 25 years. The major exception centered on the concept of buffer stocks, two years' consumption, as insurance against has been the lung cancer rate, which has stockpiles that would be used to temper political risk in southern Africa, which sup risen markedly. The National Cancer Insti price volatlllty. The U.S., he said, has thrown plies Germany with 60 percent of its chrome. tute (NCI) is less optimistic and reports that its support to the Common Fund, an inter Two years' supply would cost some 300-400 the general incidence of cancer is rising, national monetary pool established to fi million D-marks, too great a burden, Goedde but that the rise has begun to level off in nance buffer stocks. But whlle international insists, for the industry to bear alone. the last five years. The NCI notes improve commodity forums embrace the concept and Britain's official stance is similar to Ger ment in the survival rate for victims of leu are moving toward that end, its effectiveness many's. Under Secretary of State for Indus kemia and a significantly reduced rate of in controiUng prices-as tested by tin over try Les Huckfield claims that the procure breast cancer in younger women. the past 20 years-is negligible. ment and stockpiling of raw materials is The federal government has responded to European countries, although considerably the responsib111ty of industry users. He notes the challenge of cancer by attacking the more dependent on raw materials than the that the department holds an undisclosed disease on two fronts. Research-a long, in U.S., approached the threat of a shortage amount. Huckfield admits, though, that volved process requiring many repetitions of of crucial commodities in disarray. A man some 40 percent-50 percent of Britain's the same experiment to prove results-is aging director of a large U.K. steel concern chrome, 30 percent-38 percent of manga an important part of the cancer battle. The says, "Europe's raw materials policy is a mat nese imports, 50 percent-55 percent of plati federal funds invested in research (75 per ter of too little too late." num and 10 percent-15 percent of vanadium cent of all such funds) are beginning to bear Luc Smets, chief economist of Charter comes from South Africa. fruit, but breakthroughs wm not occur consolidated, a mining house with extensive "With hindsight, the government should overnight. They are hard-won through interests in Africa, is blunter: "Europe is in have stockpiled cobalt for industry since it months of intensive work complemented by a mess in regard to a raw materials policy, is difficult to build supplies in the current intuition, imagination, and patience. Often, as opposed to the United States, which has shortage," comments Desmond Mawson, a promising treatment or preventive meas built up a stockpile over many years. So far, managing director of Ross & Catherall, ure announced today may be years away from raw material supplies from Africa have only which manufactures super alloy for jet en practical application. The waiting may seem been disrupted to a small extent. Other than gines and hence is one of Britain's major cruel to cancer victims, but it is done to the invasion of Zaire, problems have been users of cobalt.e ensure that drugs and devices are truly safe largely confined to the closure of key trans and beneficial. There have been four such port lines." The acid test may lie in devel cases of promising research announced re opments in South Africa, which supplies a cently-three new drugs and an inexpensive substantial proportion of the Community WHAT ABOUT CANCER? diagnostic test-all the result of funds spent needs. by the NCI as part of the war on cancer. It is GROUPS AT WORK hoped that the drugs and test will eventually An EEC official says, however, that the EEC prove worthwhlle. Other similar discoveries is examining the sources of supply, the fu HON. LEE H. HAMILTON will undoubtedly be made in the years ture reliab111ty of producers and the possi OF INDIANA ahead. b111ty of a stockpile. Working groups have IN THE HOUSE OF REPRESENTATIVES The second front in the cancer battle been studying these schemes and proposals focuses on the prevention of the disease. The are expected to be published this year. Ne Thursday, May 3, 1979 gotiations at the Lome II Convention (which emphasis on prevention naturally involves governs 46 EEC commodity imports from de e Mr. HAMILTON. Mr. Speaker, I would the public's growing concern about cancer veloping countries) this year, are also ex like to insert my Washington report from causing substances in the environment. The pected to discuss protection for European CONGRESSIONAL debate ranges from the effects of asbestos April 25, 1979, into the on shipyard workers to the dangers posed by mining companies operating in the Third RECORD: saccharin in diet foo ~: s. In fact, many ex World. WHAT ABOUT CANCER? perts believe that 70 percent to 90 percent of Meanwhile, two members of the EEC, What does cancer cost us? Is our personal all cancer is caused by environmental fac France and Germany, are taking action on fear of cancer justified? Has progress been tors, but there is much controversy over the their own. France, the sole Common Market made in our seven-year, $5-billion "war on definition of the word "environmental". member with a national stockpile, an cancer"? What can we ourselves do to stop Some experts use "environmental" to encom nounced at the beginning of this year that cancer? These questions are being asked pass all causes of cancer other than heredi it would expend its strategic stockpile, now with increasing frequency by Ninth District tary ones. This classification would include worth about 300 m1llion francs, and the residents and many other people across the such factors as personal habits. Other experts government aims to boost the horde to a United States. believe that attributing so much cancer to b1llion francs. Most Americans know that cancer's toll environmental causes results in a fatallstlc Reasons for the decision included the is enormous. An estimated $1.8 billlon per attitude in many people. This fatallsm may slowdown in Third World investment and year is spent for hospital care of cancer pa keep people from changing personal habits uncertainties surrounding the future of tients, with additional b1llions for supple which are within their power to change. One Rhodesia, Namibia and South Africa. Cobalt mental therapy. Beyond these direct ex fact agreed to by all the experts, however, is and chrome were listed, but Paris was cagey penditures there are indirect costs such as that apparently safe substances introduced about mentioning all the minerals in the the 1.8 milllon work-years lost to the na into the environment today could have far stockpile in case markets moved against the tional economy by unemployed or underem reaching effects if found to be carcinogenic French. The stockpile would be built up ployed cancer victims. Of course, no price later. When one considers that there are selectively with a close eye on the markets. can be placed on the suffering and anguish about two million known chemicals, and Metals would not be bought at any price. of the victims themselves, their families, and that thousands more are discovered every The French Bureau of Geological and Min their loved ones. year, one sees that the concern about haz eralogical Research will also start on a four The personal fear of cancer is another ards substances is warranted. year prospecting and exploiting plan. heavy burden. The prominent people stricken Since a lower incidence of cancer depends More than half of France's non-energy by cancer in the past few years-Hubert in many cases on changes in American life minerals are imported, with extensive im Humphrey, John Wayne, Happy Rockefeller styles, a key element in the war on cancer is ports of platinum, vanadium, chrome, and are reminders that cancer does not respect the American citizen. Heightened public manganese from South Africa. It is also a. position, money, or sex. A recent survey awareness of such things as the hazards of big buyer of such energy minerals as coal shows that cancer and heart disease are the excessive exposure to sunlight, combined and uranium from South Africa. two serious affilctions that most Americans with additional research and vigorous action The Germans are worried, too. According expect to contract during their lifetimes, and to remove as many cancer-causing agents as to a Foreign Office study, the country im the statistics do not give much assurance to possible from the environment, can surely ported 48 raw materials from southern the contrary. In the early decades of this bring down the cancer mortality rate. Steady Africa in 1977. Of these minerals, chrome, century, cancer and heart disease caused progress is being made in the war on cancer, cobalt, manganese, platinum, and blue as only 12 percent of all deaths. Today, however, but individuals must do their part as well. bestos were regarded as critical. According the two diseases account for more than 50 The evidence is now that the tide of the to a German official a study recommended percent of all deaths, a drastic increase which battle will turn against cancer when Ameri that a stockpile should be formed. But so cannot be fully explained by the larger pop cans recognize the risks of their li!e styles, far Bonn feels that the stockpile should ulation, the greater average age of the popu- and accept the changes that must be made.e 9860 EXTENSIONS OF REMARKS May 3, 1979 SALT n: PERPETUATING FAILURE treaty dealing with offensive weapons is by in Table 2. These data reveal that whlle far the most dangerous element of SALT II, the U.S.S.R. has nearly 500 more launchers and it is the only aspect of the agreement than the U.S., the U.S. holds the lead in HON. RON' PAUL requiring senate ratification. The SALT II MlRVed launchers. However, the U.S.S.R. has OF TEXAS treaty limits, both specified and implied, are an overwhelming advantage in "heavy" shown in Table 1. The specified limits indi IN THE HOUSE OF REPRESENTATIVES MlRVed ICBMs, which can carry more or cate the largest number of strategic launch larger warheads than other ICBMs. Thursday, May 3, 1979 ers allowed. The implied limits are calcu According to the treaty limits, the u.s. lated by subtracting ea..ch specified sublimit would not have to reduce its current stra • Mr. PAUL. Mr. Speaker, from all indi from the next higher limit. For example, tegic arsenal, but the Soviets would have cations, the SALT II treaty will be to the 2,250 total launchers minus 1,320 MIRVed to dismantle 274 launchers. A remarkable as Soviet advantage and to the American launchers equals 930 non-MIRVed launchers pect of the treaty readily apparent from disadvantage. (including bombers). Implied limits there Table 2 data is the extent to which both An excellent analysis of this treaty ap fore indicate the sma.llest number of strate sides could increase strategic weapons e.nd peared recently in the "Research Re gic launchers permitted. When force levels stlll be within the specified limits. are lower than the specified limits, implied port" of the American Institute for Eco limits are proportionately la.rger. SALT ll AND THE JACKSON AMENDMENT nomic Research. It deserves our careful According to the limits outlined in the The United States Congress approved SALT attention. SALT II treaty, each side must reduce to I in October 1972. That agreement allowed SALT II tal strategic launchers (including aircraft the Soviets temporary quantitative superior The United states and the Soviet Union equipped for cruise missiles or for air ity in a number of strategic offensive weap are near conclusion of Phase II of the Stra launched ballistic missiles) to 2,400 Within ons systems. The temporary quantitative su tegic Arms Limitation Talks (SALT II), .ac 6 months after SALT ll enters into force. periority was deemed acceptable by Congress cording to reports from the carter adminis That number must be reduced to 2,250 by because the U.S. then possessed clear qualita trat ion. Reportedly, once final negotiations the expiration of the protocol. Within the tive superiority in missile guidance and MIRV are completed, President Carter and Soviet overall ceiling of 2,400 launchers (2,250 when technology. However, attached to Congress' Party leader Leonid Breshnev will meet for the protocol expires) both sides are mostly approval of SALT I was the Jackson Amend a ceremonial signing of the agreement. The free to mix ballistic missiles and long-range ment (named for Senator Henry Jackson, D agreement t hen will be presented to the U.S. bombers in any combination that suits their Wash.), which urged the " ... President to Senate, Where a two-thirds vote of approval st!l'ategy. A carryover provision from SALT I seek a future treaty that, inter alia, would is required for ratifica.tion. prohibits any additional fixed-site ICBM not limit the United States to levels of inter To underra-te the potential significance of launchers. ICBM silos exchanged for sub continental strategic forces inferior to the the SALT II a..ccord would be difficult. If marine-launched ballistic missiles (SLBMs) limits provided for the Soviet Union.... " ratified, SALT II would shape U.S. strategic on a one-for-one basis must be dismantled The Amendment also warned of the danger forces well into the 1980's, and it could sig or destroyed. No "light" model IBCMs may of the Soviets' developing a first-strike capa nal a decisive turning point in the balance of be converted to "heavies," and no "heavies" b1lity (the capab111ty to destroy all or a very strategic power-a turning point dev.a.stating installed before 1964 may be converted to large portion of U.S. land-based strategic to the Western world. At stake is the free more modern models. Deployed systems forces in a surprise attack). It further con dom, and perhaps t he literal lives, of hun otherwise may be modernized, subject to tended that the contemplated next SALT dreds of millions of Americans and of our restrictions not yet reported. agreement, based on the principles of equal allles. Limits on multiple warhead launchers numbers of strategic weapons, would be an PRESENT SALT ll PROPOSALS effective means of preventing the develop with MIRVs are set at 1,320, as shown in ment of such a capab111ty by the Soviets. The Alt hough some presumably minor details Table 1. Within that total, 1,200 could be of the SALT II accord remain unresolved at MIRVed ballistic missiles. No more than failure to reach such an agreement could, this time, the basic elements of the agree 820 could be MIRVed ICBMS, but all 1,200 in the words of the Jackson Amendment, ment are availaible. SALT II currently com could be SLBMs. Aircraft that accommodate ". . . jeopardize the supreme national in prises a three part a-greement. The first part intermediate-range cruise missiles or air terests of the United States." is a 6 year t reaty terminating on December launched ballistic missiles thus implicity are On the basis of the numbers alone, the 31, 1985 (unless superseded earlier) that limited to 120 (1,320 MIRVed Launchers- SALT II proposals appear to provide for equal would: (1) set equal limits on the aggregate 1,200 MIRVed ICBM/SLBM Launchers = 120 aggregates of strategic offensive weapons in numbers of strategic delivery vehicles de Cruise Missile Carriers), unless fewer than accordance with the requirements of the ployed by both sides; (2) establish various 1,200 MIRVed ballistic missiles are deployed. Jackson Amendment. However, closer scru sublimits on MIRVed systems 1 and on heavy The number of cruise missiles each aircraft tiny reveals the agreement to have a num bombers or other aircraft equipped to ca.rry will be allowed to carry is not yet clear. ber of flaws that, 1f not rectified, could doom air-launched cruise missiles; (3) limit each the U.S. to strategic inferiority. First, the side to one new ICBM type, with a maximum Finally, the SALT II treaty stipulates that SALT II formula excludes some important the 820 MIRVed ICBM launchers allowed, of 10 MIRVs; (4) bar increases in the number Soviet weapons systems, principally the Back of warheads on existing JICBMs; and (5) pro 308 (or 326) "heavy" MIRVed ICBM launch fire bomber and the SS-20 Mobile Interme vide measures to permit unimpeded verifica ers are permitted. The United States does diate Range Balllstlc Missile. The Backfire tion by national technical means. not have any "heavy" launchers in its strate bomber was specifically designed to carry The second part of SALT II is a "protocol." gic arsenal, and because SALT II prohibits nuclear weapons, has a range of approxi whose expiration date still is not firm but the constll'uction of additional fixed-site mately 5,000 miles, and can be refueled in reportedly is between mid-1981 and mid- ICBM launobers, none will be permitted for flight. The U.S. has acquiesced in the So 1982. This protocol would: (1 ) bar deploy the United States. viet demand that the Backfire be classified ment of ground-launched and ship-launched TABLE I.-PRESENT SALT II TREATY PROPOSALS a "theater weapon" and excluded from SALT cruise missiles with ranges greater than 600 II. In return, the Soviets apparently gave kilometers (372 statut e miles) during that assurances that all Backfires would be based period, while permitting unimpeded testing Specified lirr.its within the U.S.S.R., from which they could and development of such vehicles at any not reach the U.S. on roundtrip, unrefueled range; and (2) bar testing and deployment Total launchers______2, 400 (' 2, 250) missions. In a first-strike attack, the Russians of mobile ICBMs or air-to-surfa..ce balllst ic MIRVed launchers______1, 3?0 could send the Backfire fleet to the United MIRVed ICBM/SLBM launchers______1,200 missiles during that period. The treaty does MIRVed ICBM launchers______820 States and accomplish their return with air not restrict the deployment of these systems "Heavy" MIRVed ICBM launchers______308 (2 326) refueling or have them land in Cuba or an after the protocol expires. other nearby country friendly to Russia. The t hird part of SALT II is a "statement Implied limits The SS-20 is a moblle, two-stage missile, of principles." Its original purpose, as pro Non·MIRV launchers (including bombers) __ __ 930 now being outfitted with three MIRV war posed by the United St ates, was to serve as Cru ise missile carriers_------ 120 heads. So equipped, the missile could not a guide for SALT III and as an outline of MIRVed SLBM 's------ 380 reach the U.S., but with a smaller warhead it specific new lower ceilings on strategic weap " Light" MIRVed ICBM's------512 (2 494) could. Moreover, the SS-20 consists of two ons to be established with SALT III. The of the three stages making up the SS-16, a present version, however, simply is a pledge 1 Signatories must reduce total launchers to 2,250 when the bona fide ICBM, and it is launched from the by both sides to seek a follow-on agreement protocol expires. same mobile launcher as the SS-16. The that would provide for a reduction in the ' If 18 Soviet "heavy" launchers located at test sites are included. Soviets have refused to divulge the numbers number of strategic wea-pons. of SS-20s that have been bullt or the number Although the protocol and statement of Source : " SALT II Acceptance Criteria: A Military Appraisal," of third stages that have been stockplled and principles would subvert U.S. interests, the John M Collins, Senior Specialist in National Defense The Library of Congress. are readily available for converting SS-20s into SS-16s. Inasmuch as mobile missile 1 MIRVed ballistic misslles carry multiple Estimates of the respective inventories of launchers are not restricted in the treaty, warheads that can target more than one aim strategic weapons of both the U.S. and Soviet ICBM totals include neither S8-20s point. U.S.S.R. and other related data are shown nor SS-16s. May 3, 1979 EXTENSIONS OF REMARKS 9861 Second, the SALT II formula grants ex Thus, 1the Soviet "heavy" ICBM force alone deployment, yet no means of verifying com clusively to the Soviet Union the right to de poses a distinct first-strike threat to U.S. pliance with this constraint has been set ploy "heavy" ICBMs, and the Russians have ICBMs. Moreover, even after launching all forth. In this connection, the Soviet Union more than 300 of them. The Soviets have such "heavy" ICBMs, the Soviets would have alone has developed a "cold launch" tech deployed two types of "heavy" ICBMs, the in reserve nearly 2,000 additional strategic nique for firing ICBMs, including the "heavy" SS-9 and the larger SS-18. According to the weapons. Some analysts fear that the dam BS-18. With this technique, missiles are Department of Defense, approximately 200 age done to U.S. forces from such a first strike ejected from their silos by compressed gas 8S-18s have been deployed, and defense would be so extensive that our retaliatory before the rocket engines are ignited. This analysts assume that by the early 1980's all attack might not inflict damage in excess of permits the reloading and firing of additional 8S-9s will be replaced by SS-18s. Such an what the Soviet leaders would be willing to missiles from the same silo. Obviously this BS-18 force would be capable of delivering in accept. factor substantially affects the strategic excess of 3,000 warheads, each one at least Third, the SALT II agreement, like 1the equation, yet the U.S. does not know how as large as the largest U.S. Minuteman war SALT I agreement, restricts only the num many Soviet missiles have been stockpiled head. That force would be two warheads per bers of missile launchers, not the number of for this purpose. Inasmuch as stockpiled U.S. ICBM silo. Recent tests have demon actual missiles. U.S. officials maintain that missiles are not "deployed," they are not strated these warheads to be highly accurate. one missile per launcher constitutes normal limited by the SALT II treaty. TABLE 2.-PROPOSED SALT II TREATY LIMITS, UNITED STATES AND U.S.S.R. STRATEGIC INVENTORIES AND THEIR TREATY STATUS United States U.S.S.R. United States U.S.S.R. Specified Implied limits Inventory Status Inventory Status limits Inventory Status Inventory Status Total launchers ______• 2, 250 2, 060 -190 2, 524 +274 "Light" MIRVed ICBM's------· -· t 820!494 550 -270 262 -232 Ml RVed launchers •. ------______1, 320 1, 046 -274 700 -620 MIRVed SLBM 's·------380 496 +116 130 -250 MIRVed ICBM/SLBM ______1, 200 1, 046 -154 700 -500 Cruise missile carriers ______120 0 -120 0 -120 MIRVed ICBM_------820 550 -270 570 -250 Non-MI RVed launchers ______930 980 +SO 1, 801 +871 •'Heavy" MIRVed ICBM 's______326 0 -326 326 Par I SALT II prohibits U.S. "heavy" MIRVed ICBM's; thus the U.S. limit on 'light" MIRVed Source: Same as table 1. ICBM's is 820. Fourth, the means of verifying Soviet com data suggest that the present burden of the that Soviet leaders have forsaken the Marx pliance with the terms of the new treaty are U.S. strategic arms budget is far from un ist Lenninist practice of making slaves of totally inadequate. The Soviets categorically bearable. Moreover, the marked reductions in their own people and the goal of destroying refuse any on-site inspection of armaments; U.S. strategic spending during recent years capitalism? Soviet leaders glory in their "vic therefore, all verification must be accom have come at the high price of the U.S. sur tories" in Vietnam and throughout Africa. pllshed with "national technical means." In rendering an unquestioned strategic superi Soviet leaders' rejection of President Carter's practice this means using satellites and ority over the Soviet Union. Now that that plea for more respect for human rights and ground-based monitoring devices. However, superiority has been squandered, U.S. defense their fiagrant violation of the Helsinki satellite surveillance and ground-based sen spending for strategic purposes will have to Agreement do not indicate a narrowing of sors cannot be relied upon for detecting such be increased just to maintain the now the ideological differences between the two critical aspects of SALT II as: which missiles questionable strategic balance with Russia. nations. Thus, all of the arguments made in are armed with MIRVed warheads and how If that is not dane during the next few years, support of SALT II are contrary to available many warheads each missile carries; the the Nation wlll be lost-with or without evidence-they are utterly false. range capab111 ties of the various deployed SALT II. However, a SALT II treaty would PEACE THROUGH STRENGTH cruise misslles; what bombers, surface ships, provide social-welfare spenders with ammu For nearly a decade the United States has or submarines are armed with cruise mis nition to shoot down proposed increases in adhered to both the letter and the spirit of siles; how many missiles are stockpiled near the defense budget. After all, they could the SALT process, with the objective of in "cold launch" launchers, etc. argue, the SALT II treaty made such waste creasing domestic and world security. The In addition to these flaws, the language of ful spending unnecessary. Ever since the Soviet Union has had equal opportunity to SALT II, as was the language of its predeces SALT process began, this argument has been promote progress toward those goals, but it sor, is imprecise on some critical "aspects. used, and often successfully. has not. As a result, Americans now are Terms such as "heavy bomber" and "new" On the other hand, since the SALT proc demonstrably less secure than when the ICBM are not rigorously specified. The Soviet ess began, Soviet strategic progra.ms have SALT process began. The Nation can ill af Union took advantage of many language been pushed forward in nearly every aspect, ford another treaty that will perpetuate past loopholes in SALT I, even when their actions both qualitatively and quantitatively. The adverse trends. clearly violated the "spirit" of the agreement. CIA recently estimated that overall military U.S. leaders should not expect different be spending by Russia exceeds that of the U.s. American leaders must recognize that havior by the Soviets this time around. by about 40 percent and that their expend peace comes through strength, not through appeasement. The latter route was followed FALSE ARGUMENTS itures on strategic weapons exceed such U.S. spending by 200 percent. During the for the past decade or more, and it has failed. In its recently begun major effort to pro decade from 1968 to 1978, the CIA estimated No nation has the productive capability of mote acceptance of the SALT II agreements, that Soviet defense spending in real terms the United States. Either America shall make the Carter administration is using three increased at an average annual rate of 3 the economic sacrifice needed to protect its basic arguments. (1) Approval of the SALT II percent. liberty from outside foes or America shall treaty is necessary to keep strategic spending Likewise, the record of SALT does not sug perish. In our opinion, the United States within reasonable levels. (2) SALT II wm gest that a SALT II accord would enhance should withdraw from the perfidious SALT enhance "stab111ty and predictab111ty" in a "stab111ty and predictabllity," as its pro process and return to the old, successful pol dangerous nuclear environment. (3) Ap ponents argue. Surely SALT I did not, unless icy of doing whatever is necessary to defend proval of SALT II wlll extend the SALT proc by "stability" one means less of a challenge our interests on our own.e ess, which ultimately could lead to greatly to the stable, tyrannical Communist govern reduced stocks of strategic weapons, to in "stab111ty and predictability," as its pro creased friendship, cooperation, and trade dictab111ty" one means a consistent policy of between the U.S. and U.S.S.R., and to a the Russians to promote "wars of liberation" narrowing of the ideological differences that wherever and whenever they can. As the UDALL-ANDERSON: THE BEST BILL have made the two nations enemies. Al trend of strategic balance has swung in fa FOR HUNTERS AND WilDLIFE though these arguments greatly appeal to vor of the Soviet Union since the SALT proc peaceful persons, the record of the SALT ess began, the Russians have become increas process during the nearly one decade it has ingly hostile and aggressive, particularly in HON. BRUCE F. VENTO continued, reveals a history of dismal failure Africa and the Mideast (the U.S. having al OF MINNESOTA on each of these purported advantages. ready been beaten in Indochina). When have First, U.S. spending for strategic weapons the Soviets shown restraint other than when IN THE HOUSE OF REPRESENTATIVES systems tn constant dollars now is only about forced to by external circumstances? Thursday, May 3, 1979 half what it was during the mid-1960's, and, In view of this record, to argue that SALT as a percentage of GNP, U.S. spending for II should be approved in order to continue • Mr. VENTO. Mr. Speaker, as the strategic programs during 1978 was less than the SALT process is ludicrous. The U.S. bas House takes up legislation on the desig one-third that throughout the 1950's and not benefited from SALT, but the U.S.S.R. nation of Alaska national interest lands, one-halt that during the 1960's. Clearly, these has. Where is there any credible evidence there are many factors that we must con- 9862 EXTENSIONS OF REMARKS May 3, 1979 sider. Our Nation's need for the resources levels when mining and oil and gas ex American sportsmen will support H.R. of that State, the equally important need ploration and development occur. 3651.• to protect the unique character and This potential conflict is greatest in pristine quality of so many areas in some of the areas richest in wildlife. Both the State, and the social and economic the Breaux and Huckaby bills fail to pro MAKING STUDENT LOANS MORE well-being of all the residents of Alaska tect adequately the Alaska Peninsula by AVAILABLE-THE NEED FOR CON are a few of the factors that will affect not designating it as a national wildlife STRUCTIVE CHANGE the decisions that we make. Another im refuge. The Udall-Anderson bill does portant factor is the impact that any guarantee that this area, which the legislation will have on sport hunting in Merchant Marine Committee of the 95th Alaska. As a member of the Interior Congress recognized as the most impor HON. ANDREW MAGUIRE Committee for the 95th and 96th Con tant wildlife area in the State, will be OF NEW JERSEY gresses and as a hunter, I have been very managed under national wildlife refuge IN THE HOUSE OF REPRESENTATIVES concerned that any legislation passed bY designation and protection and that the Thursday, May 3, 1979 Congress guarantee a continuation of area's levels and diversity of wildlife hunting within that State for the im species will continue. e Mr. MAGUIRE. Mr. Speaker, last mediate and long-range future. The bill Both the Huckaby and Breaux bills are week I introduced the Fair Access to that best accomplishes that goal and best replete with further examples of where Higher Education Act of 1979-a bill to the best interests of hunters, wildlife, and make guaranteed student loans more represents the pure interests of hunters available to mid- and lower-income col is H.R. 3651, the Udall-Anderson bill. wildlife habitat are sacri.ficed to satisfy the never-ending demands of develop lege students without disrupting current While the other proposals purport to loan delivery, without increasing the represent the interests of sportsmen, mental interests. Perhaps the most bla cost per loan to the Government or the only the Udall-Anderson consider sport tant example of the insensitivity of the student borrower's real repayment bur hunting within the broader context of Breaux and Huckaby bills to the future stability of Alaskan wildlife and the den, and without trying to centralize wildlife and wildlife habitat protection loans in another unresponsive bureauc and management. H.R. 3651 recognizes state of hunting is the treatment of the Arctic National Wildlife Refuge. This racy directly funded and controlled that to insure the long-term continua from Washington. Earlier this week I tion of sport hunting in Alaska, it is area is the site of the calving grounds for the porcupine caribou herd, the largest addressed the act's provisions in more necessary to guarantee that there is a detail. I will continue to demonstrate suitable environment to maintain the caribou herd in North America. Both the Huckaby and Breaux bills would delete over the next few days why the Fair various species of wildlife and waterfowl. Access Act is-as one major student Only this bill properly protects the wilderness from the Arctic coastal plain and would mandate oil and gas explora group has called it-"The most compel habitat upon which wildlife and sport ling loan proposal we have seen so far." hunting depend. tion within this vital habitat. As the In terior Committee report noted in its That view seems supported by the fact The Udall-Anderson bill takes great dissenting views: that while we h8ive not yet made a con certed effort to seek support in the care to insure that wildlife is available Petroleum development with its drilling in sufficient quantity to allow for con pads, pipelines, roads and constant aircraft House, Mr. FRENZEL has already agreed tinued sport hunting. The boundaries for activity, etc. would have major adverse im to be added as cosponsor to the original the national parks, where hunting is pro pacts on wildlife. The only uncertainty is list. I am grateful and delighted for this hibited, were drawn in such a manner as how large the wildlife decline would be, not additional support, and am confident it to eliminate to the maximum extent all whether wildlife population would decline. will snowball as the bill's merits and the conflicts with sport hunting. Thus, under The potential negative impacts of the views of outside groups become more H.R. 3651, approximately 90 percent of Huckaby and Breaux bills would not be fully known. all the land in the State of Alaska is limited to Alaskan wildlife or hunters in However, my point today is more sim potentially available for sport hunting. that State. Indeed, the impacts of either ple than further explanation. Three of Based on harvest data gathered by the of these bills would affect migratory the GSL program's great strengths are State of Alaska and ~orrelated to the pro waterfowl hunters throughout the Lower that it represents a proven loan-delivery posed conservation system by the Uni 48. The failure of these bills to protect mechanism from which many kinks have versity of Alaska a.nd Department of the crucial nesting areas such as the Yukon been eliminated over the last 15 years; Interior biologists, these nearly 337 mil Flats Basin, an area which contributes an that it has come to rely heavily on the lion acres account for approximately 92 annual flight of over 2 million ducks and 39 State guarantee agencies, whose in percent of recent moose harvest levels, tens of thousands of geese to all the :fly genious and flexible policies are directly 86 percent of recent brown bear harvest ways, will ultimately reduce the water responsible for generating most new levels, and 78 percent of the recent dall fowl available to hunters in the lower 48 loan funds; and that it is highly lever sheep harvest levels. This will allow suffi States. Both the Huckaby and Breaux aged, since $1 of directly budgeted Fed cient latitude in State wildlife manage bills would slice off a major portion of eral operating money can put or keep ment policies to allow for a continuation the watershed of the Yukon Flats and up to 10 private loan dollars on the edu of current hunting practices. open it to State selection. This proposal cational street. The Fair Access Act will Unlike the other proposals, the Udall is fraught with the possibility of incom build on these strengths by offering stu patible subdivisions with logging, mining, dents and lenders a series of supplemen Anderson bill recognizes that to best in and other activities. tal options, which they can efficiently sure the continued availability of game, I am concerned that a bill such as the use to remove or reduce remaining pro action must be taken to protect the in-· Huckaby or Breaux bill, which encour gram headaches. tegrity of their habitat. An underlying ages the maximum amount of develop Mr. Speaker, while data on the GSL concept of the Huckaby and Breaux bills ment and habitat encroachment, is not program is deficient in some respects, it is that Alaskan wildlife can coexist and in the best interest of sport hunters. Ade solidly supports both the existence of flourish with logging, mining, oil and gas quate care and attention must be paid to these basic strengths and the benefits development, and other types of indus insure that wildlife levels do not decline and cost savings the Fair Access Act will trial development. This untested theory because of man's development and the produce. I ask unanimous consent that a ignores the historical precedents in the resultant decline in the quality of wild series of statistical tables documenting lower 48 States--the loss of the buffalo life habitat. Only under the Udall-Ander the program's growth and past perform throughout the country because of our son bill is the question of hunting con ance, as well as the likely effect of this push west and the loss of the caribou and sidered in its entire context. Only this act's provisions for flexible repayment moose in northern Minnesota because of bill provides the proper areas for hunt and cost reduction, be reprinted in the habitat encroachment. It is beyond com ing while protecting the habitat so criti RECORD. This material supports my prehension to expect that Alaskan wild cal for the continued existence of wild earlier statements and should be made life, which requires much more expansive life. Therefore, those who are truly in available to my colleagues and the areas to survive, will continue at present terested in meeting the real needs of public: May 3, 1979 EXTENSIONS OF REMARKS 9863 I. LOANS MADE, TOTAL GSL PROGRAM, FISCAL YEARS 1975-80 Ill. DECLINE OF FEDERAL (FISL) COMPONENT, GSL PROGRAM, FISCAL YEARS 1975-80 [Dollar amounts in millions) [Dollar amounts in millions) Fiscal year- Fiscal year- 1979 1980 1979 1980 (esti (esti (esti (esti Disbursements 1975 19761 1977 1978 mate) mate) 2 Disbursements 1975 197fr I 1977 1978 mate) mate) z Current year______$1,208 $1,388 $1,470 $1,854 $2,250 $2, ~00 Current year__------.. ------_------$589 $536 $457 $417 $270 $244 Cumulative to start of current year______6, 825 8, 033 9, 768 11,238 13, 092 15,342 Cumulative to start of current year_------3, 038 3, 627 4, 297 4, 754 5,171 5, 441 Cumulative at end of current year ______8, 033 9, 7€8 11,238 13, 092 15, 342 17, 842 Cumulative at end of current year __ ------3, 627 4,297 4, 754 5, 171 5, 441 5, 685 Average size loan______1, 314 1,436 1, 562 1, 809 1, 998 2,187 Average size loan ______------1, 312 1, 489 1, 554 1, 767 1,888 2, 068 Loans in current year (thousands)______919 966 941 1, 025 1, 126 1,143 Loans in current year (thousands) ______449 360 294 236 143 118 Percent increase or decrease over prior 1 5-quarter transition fiscal year, adjusted by 0.80 to reflect annual trends for current years. year: Totals do not add because cumulative figures are not so adjusted. Dollars in loans ______-9.0 -14.7 -8.8 -35.3 Number of loans ______-9.6 2 Does not reflect CBO estimate that 1.6 million loans, totalling about $3,50~lOOO,OOO, will likely -19.8 -18.3 -19.7 -39.4 -17.5 be made in fiscal year 1980 due to the Middle Income Student Assistance Act (IVIISAA) and normal program growth. 1 5-quarter transition fiscal year, adjusted by 0.80 to reflect annual trends for current years. Source: U.S. Office of Education, budget printouts, December 1978, January 1979. 2 Does not reflect CBO estimate of 1.6 million loans totaling about $3,500,000,000, for fiscal year 1980. II. GROWTH OF STATE AGENCY COMPONENT, GSL PROGRAM, FISCAL YEARS 1975 -80 Source: U.S. Office of Education, budget printouts; December 1978, January-February 1979. [Dollar amounts in millions) IV. LEVERAGE FACTORS IN THE GSL PROGRAM, FISCAL YEARS 1975-80: HOW MANY LOAN DOLLARS ARE DELIVERED BY A DOLLAR OF DIRECTLY BUDGETED FEDERAL OPERATING Fiscal year- FUNDS 1979 1980 [Dollar amounts in millions) (esti- (esti- Disbursements 1975 19761 1977 1978 mate) mate)' Fiscal year- 1979 1980 Current year______$619 $852 $1,013 $1,437 $1,980 $2,256 Cumulative to start of current year ______(esti- (esti- 9, 787 4, 406 5, 471 6, 484 7, 921 9, 901 1975 19761 1977 1978 mate) mate) Cumulative at end of current year------4, 406 5, 471 6, 484 7, 921 9, 901 12, 151 Average size loan ______1, 317 1, 405 1, 566 1, 821 2, 014 2, 201 (1) Total yearly operating costs, combined Loans in current year (thousands) ______470 606 647 789 983 1, 025 Federal-State program 3 __ ------$460.4 $555.8 $513.4 $666.2 $951.7 $991.7 Percent increase or decrease over prior (2) Cumulative loans outstanding______5, 320 5, 676 6,193 6, 825 7, 792 8,889 year: Dollars in loans·------+37. 6 +18.9 +41.9 +37.8 +13.9 Leverage factor (2)+(1)______11.6 10.2 12.1 10.2 8.2 9. 0 Number of loans------+28. 9 +6.8 +21.9 +24.6 +4.3 1 15-mo fiscal year. 1 5·quarter transition fiscal year, adjusted by 0.80 to reflect annual trends for current years. 2 Does not reflect larger CBO estimates for same period. 2 Does not reflect CBO estimate of 1.6 million loans totaling about $3,500,000,000, for fiscal year a 1ncludes annual amounts for interest subsidy, special allowance payments to lenders, default 1980. claims, default claims due to death, disability, or bankruptcy of student borrower, and administra Source: U.S. Office of Education, budget printouts, December 1978, January-February 1979. tive cost payments to State agencies. Source: U.S. Office of Education, budget printouts, 1978-79. V .-WHERE STUDENT LOAN FUNDS COME FROM-PERCENT VI. WHO GETS GSL'S NOW VI I.-REPAYMENT TIMES, REDUCTIONS IN SUBSIDY COSTS DISTRIBUTION BY TYPE OF PRIVATE LENDER , FEDERAL AND NET SAVINGS UNDER FAIR ACCESS TO HIGHER (FISL) COMPONENT OF THE GSL PROGRAM ONLY, CUMU [Percent distributions , benefits and recipients, by income level EDUCATION ACT OF 1979, AS COMPARED TO PRESENT LATIVE THROUGH CALENDAR YEAR 1978 and type of institution attended, fiscal year 1978 and academic GSL PROGRAM, AY 1979-80 year 1976-77) [Dollars in millions) A. Time for debt retirement, by income class Income level-Family (dependent Loan Percent student) or student (independent) t Years for complete repayment Type of lender volume I total $15,000 to $25,000 Low Middle High 0 to $15,000 to $25,000 plus National bank ______$1,795,321 32.0 Lifetime income: State bank (FDIC) ______1, 317,782 23.5 Percent of dollar GSL ______------10 10 10 Vocational institution (as school benefits _____ ------63 32 Fair Access Act. ______19 13 8 lender)_. ___ ._._._ ••• _._. ______667,508 11.9 Direct State loan ______.------336,225 6.0 Federal savings and loan ______274, 174 4. 9 B. Rapidity of repayment per $1,000 borrowed in AY 1979-80 Academic institution (as school Type of Postsecondary Institution Attended 2 under Fa ir Access Act, by present value and as percent of lender) ______. ------•• ------264,814 4. 8 present value of ultimate amount repaid , average of all income Federal credit union ______195,634 3. 5 classes for former college students State bank (non-FDIC) ______130,243 2. 3 Mutual savings bank ______124,283 2. 2 Public State savings and loan ______113,812 2. 0 Amount Percent of State credit union ______96,307 1. 7 Univ. 4-yr 2-yr paid ultimate Insurance company.------_ 36, 165 • 7 (pdv) total (pdv) Other_._.------. 250,407 4. 5 Not coded. __ ------289 ------Percent of benefits______26 19 Percent of recipients ______2_7 ____ 1_2 ___ _ Year: TotaL______5, 602,963 100.0 5_------$144 23 Private 10.------447 72 15_------561 90 1 Commitments (agreements to lend), not actual disburse Proprie 20------593 96 ments. Univ. 4-yr 2-yr tary C. Effective gross rates of return, GSL and others versus Fair Note.-Figures for State-agency program component not avail Percent of benefits ______5 25 2 19 Access Act able; above percentages may underrepresent or overrepresent Percent of recipients ___ _ 10 22 2 19 particular distributions for the whole program due to different Percent State-agency demographic factors associated with borrowers and lenders. Totals may not add due to rounding. 1 Fi seal year 1978. 2 Fiscal year 1976-77. GSL ______• ___ ------__ ----- 3. 4 Source: U.S. Office of Education, Bureau of Student Financial Source: Congressional Budget Office, "Federal Assistance for Fair Access AcL______6.2 Assistance. Data submitted to Hon. William Ford, chairman, Postsecondary Education: Options for Fiscal Year 1979" (May NDSL. __ ------_------1. 0 Subcommittee on Postsecondary Education, February 1979. 1978). TAF (weighted mean>------2.6 9864 EXTENSIONS OF REMARKS May 3, 1979 D. AGGREGATESUBSIDY COSTS AND SAVINGS, AY 1979-80, XI. SHAPE OF INCOME-BASED REPAYMENTS UNDER want fancier clothes, cars, houses and other IN BILLIONS OF DOLLARS FAm ACCESS TO HIGHER EDUCATION ACT symbols of the good life for themselves as (NoTE.-Gra.ph (not reproduced) assumes well as college education for their children, Participation rate $10,000 borrowing and annual income start and they complain petulantly when their ing at $6,500.) budgets won't stretch to accommodate their 30 50 expanding desires. percent percent (Source: Higher Education Finance Re There undoubtedly is some truth to this search Institute, Jan. 1979.) e view. Indeed, an informal Times survey last Aggregate loan volume______$4. 939 $8.232 November turned up some parents who ap· Aggregate subsidy cost: peared to fit all too well this image of insa• GSL------2. 252 3. 754 tiable materialism. Fair Access Act: STUDENT LOANS: THE NEED FOR 7 percent yearly income growth. 2. 239 3. 733 INCREASED AVAILABILITY A close look at the studies and the data be 9 percent yearly income growth. 2. 205 3.675 hind them, however, suggests that the issue Net yearly savings in subsidy costs over is far more complex, and that there may be GSL: 7 percent yearly income growth___ __ +. 013 +.022 HON. ANDREW MAGUIRE a solid basis in fact for the middle class per 9 percent yearly income growth__ ___ • 047 +.079 ception of an increasingly painful college· OF NEW JERSEY cost burden. IN THE HOUSE OF REPRESENTATIVES If this is true, then the political arousal Note: Source for all subtables: Stephen P. Dresch, "Financial and Behavioral Implications of Federal $tudent Loan Programs Thursday, May 3, 1979 of the middle class on this issue can be ex and Proposals" April 1979, forthcoming 1n Tuckman & Whalen, pected to mount. And the consequences of eds., "Subsidies to Higher Education: The Issues" (New York: e Mr. MAGUIRE. Mr. Speaker, on April that could be huge. Praeger); personal correspondence, Dresch to Maguire. Unless otherwise indicated, all subtables assume a 7-percent yearly 26, I introduced the Fair Access to Congress already has forced through, income growth and a base of 5,880,000 full-time undergraduates). High& Education Act. I have already in against the warnings of its own budget ex perts and those in the Carter Administration, VIII.-ILLUSTRATIVE REPAYMENT OF $10,000 IN GSL's serted into the REcORD some recent news a loosening in the income-ellglb111ty rules UNDER THE PRESENT GSL PROGRAM paper articles which focused on the prob for federal student aid and loan guarantees. lems of student debt burdens, loan de And pressure is continuing for a furth~r Total payment Balance due faults, and the financial pinch faced bY loosening, perhaps including tax cred~ts for many middle- and lower-income families students or their parents. The combined an Year : when these families have to cope with nual costs of such moves would bd many 1------$1, 394 $12,550 billions of dollars. 2------1, 394 11, 156 skyrocketing tuition costs. 3------1, 394 9, 762 Today, I would like to add two articles What is behind the pressur~? What justi 4------1, 394 8, 368 fication do middle class parents have for de 5------1, 394 6, 974 which furnish more evidence on the ex manding more government nelp in meeting 6_ ------1, 394 5, 580 tent of the present financial problems college costs? 7------1, 394 4,186 8------1, 394 2, 792 both for parents and students, and for Recent studies by, among others, the Con 9.------1, 394 1, 39~ the Government. gressional Budget Office and the Brookings 10 ------1, 394 I insert these two Los Angeles Tinies Institution, a private research organization articles in the RECORD. in Washington, have found little such justi Note : Fieures may not add due to roundine. fication. MIDDLE INCOME PARENTS MAY BE JUSTIFIED Between 1961 and 1975, for example, the Source : California Student Aid Commission, "California IN YELLING OUCH Student Financial Aid Workbook," 1978. Brookings study found that costs at private (By Paul E. Steiger) colleges rose 158 percent to $2,333 a Jear, 1X.-ILLUSTRATIVE TAKE-HOME PAY, REPRESENTATIVE Picture yourself, if you can, as a young and climbed 135 percent at public institu STARTING SALARIES OF SINGLE FORMER COLLEGE man or woman of 20 years ago, about to tions to $513 a. year. But it also found that STUDENTS, CALENDAR YEAR 1978 emerge from college. It is 1959. Eisenhower after-tax income per-capita in the United is in the White House. Elvis is on the radio. States rose 156 percent in the same period, GSL Football comes without instant replay. to $5,062 a year. (During the same period, payments as Apathy is in but on its way out. So are crew the combined average cost of tuition, room percentage of cuts. and board rose 101 percent, to $1,748 a year, Take-home take-home pay 1 pay 2 Your father is an accountant or bank for public institutions and 120 percent, to branch manager or high school principal. Or $3 ,667, at private colleges.) perhaps he is a. contractor or mechanic who The study also found that average private Gross starting salary : never got past high school himself. By draw costs were 14.3 percent of the median in $7,000. ------$5, 880 23.7 come of famllies whose head was between $10,000------ 7, 920 17. 6 ing down most of his savings and borrowing $13,000 ------9, 840 14.2 a. smtdge against his life insurance, he has 45 and 64 years old in 1975, the same as it paid your way-with a. little help from your was for similar famlUes in 1961. And it con summer and campus jobs and the modest cluded that the tuition-to-income ratio had 1 After deductions for Federal and State taxes and social security tax. Table may understate these deductions due to scholarship you managed to snag. actually declined to 3.1 percent from 3.4 local taxes and subsequent social security rise. At last, the bachelor's degree is about to percent, for state-supported colleges. 2 Assumes $10,000 in GSL borrowing, repaid on conventional be yours, free and clear, your ticket to upward Thus, by these measures, the burden of 10-yr basis as illustrated above. mob111ty, to highly paid jobs not available college costs appears at worst to have held Source: "California Student Financial Aid Workbook" and to those without that coveted credential. steady and in some cases to have diminished. staff calculations. And while your parents are noticeably poorer, There are several problems with these data, X.-ILLUSTRATIVE INCOME-BASED REPAYMENT OF $10,000 neither they nor you have been saddled with however, as the analysts who assembled them a terrifying debt. In fact, they expect to concede. IN GSL's UNDER THE MAGUIRE FAIR ACCESS TO HIGHER The first problem is that the figures on EDUCATION ACT scrape up enough for your obnoxious younger brother's college costs as well. income that were used in the stud!es are Why is it that this vision seems so far substitutes for data the analysts would have Bor- Princi- rower's Total Interest pal re- Balance away, so foreign today? Why do so many preferred but which are not available: the Year income payment payment payment due modern middle class parents-particularly average after-tax income of fammes with upper middle class parents, those with an college age children. }_ ___ _ $10,000 $500 $700 -$200 $10, 200 nual incomes of $25,000 or more-see the cost As a result, the studies may give an ex 2 ___ __ -139 3 ____ _ 10,750 575 714 10,339 of college for their children as a. crushing aggerated impression of the growth in the 11,556 656 724 -68 10,407 burden, when their predecessors of a genera income available to families seeking to fi 4 _____ 12,423 742 729 14 10, 393 5 ____ _ 13,355 835 728 108 10,285 tion ago seem to have viewed 1t more as a nance a college education. 6 _____ 14,356 936 718 216 10,070 difficult but ultimately satisfying struggle? For example, the per-capita income fig 1, 043 705 338 9, 731 7---8 _____-- 15,433 A series of private and government studies ures include money earned by single people 16,590 1, 159 681 478 9, 253 in the last year or so have concluded that in and couples without children, who consti 9 ____ _ 17, 835 1, 283 648 636 8, 618 10 ____ 19, 172 1, 484 603 881 7, 736 pure economic terms, the burden of college tute a greater proportion of the population ll_ ___ 20,610 1, 772 542 1, 231 6, 506 costs is not any heavier than it was. College now than they did 20 years ago and whose 12 ____ 22, 156 2, 081 455 1, 626 4, 880 13 ____ costs have soared since 1960, but not any income has grown faster than average. 23,818 2, 414 342 2, 072 2, 808 more than the income available to pay for 14 __ __ 25,604 2, 771 197 2, 574 234 Moreover, the household income figures do 15 ____ 27,524 250 16 234 0 them, the studies have declared. And mean not reflect growth in effective tax rates, while, the studies note, the amount of gov which would reduce the money avallable for ernment aid has skyrocketed. college expenses. · Note : Borrower's income assumed to start at $10,000 and grow at 7.5 percent annually. Figures may not add due to These studies, in turn, have led some ana A second problem is that the income fig round ing. Figures may slightly understate balance due because lysts to argue that the crescendo of com ures used in the studies include the earnings they apply to an earlier version of the final bill. plaint over college costs refiects mainly an of working mothers, of whom there are many Source: Higher Education Finance Research Institute, Uni upsurge of greed on the part of middle class more now than in 1961. Much of their in vers ity of Penn;;ylvania, January 1979. parents. These parents, so the argument goes, come is real and should be counted. But some May 3, 1979 EXTENSIONS OF REMARKS 9865 of it goes to pay for household services that wise afford. But it also would eliminate the Starting in 197(i, B of A also imposed more a housewife provides without a cash wage. chance for some poor students who now severe lending restrictions than the federal Such expenditures for child care, convenience attend college to afford any higher education limits. The bank's maximum loan is $1,500 foods, extra communication costs and the at all. a year, $5,000 total for an undergraduate, like should be deducted from the growth in The nation, in other words, faces a serious compared with a federal ceiling of $2,500 an money income, but cannot be, because figures dilemma in deciding what to do about col nually and $7,500 total for an undergraduate. on these costs are not available. lege costs. It is a dilemma of rising expec Livermore acknowldeges that it makes fi A third problem is that studies offer no tations, of the sort likely to be faced count nancial sense for a family to borrow interest firm indication of what has happened in the less times in the next few years, as govern free money, even if the family doesn't really last decade or two to the wealth, as well as ment tries to cut back the growth of its need it. The family could set up a long-term the earnings, of fam111es with college-age expenditures. savings account with an expiration date nine children. The ability of a family to afford In the post-Sputnik era of the late 1950s months after the student graduates--which college costs depends in part on the value and early 1960s, government aid was targeted is when loan repayment starts. At that time, of the assets it has accumulated-a piece of for the most part on those who presumed to the family could pay off the loan and keep property or some stocks that could be sold be the best and brightest students and their the interest, he points out. or mortgaged, for example-as well as the teachers. In the egalitarian wave that fol Security Pacific National Bank, Californla's annual flow of income it is receiving. Wealth lowed, it was focused on the children of the second largest, made $350,000 in student has increased in the United States over the poor. In the process, the idea has taken hold loans in 1978-a large drop from B of A's last 20 years, but figures are not available to that higher education is a right, not a priv $20 milllon. Since March, 1976, Security Pa- indicate whether the increase in wealth ilege. It is an idea that will die hard, or -cific has only lent to prior borrowers because among households with college-age youth take a lot of money to fulfill. of administrative problems with the federal has kept pace with the growth of college government, says Vice President Gregory STUDENT LOANS No LONGER TIED TO INCOME costs. Lancaster, who has headed the student loan The fourth and final problem is probably A major change took place in federal sup program there for eight years. the most significant. Considerable evidence port for higher education late last year with Starting in early 1979, the California Stu suggests that the value of a college education the passage of the Middle Income Student has shrunk in the last 20 years, even as its Assistance Act. For the first time, middle dent Aid Commission will undertake the re price. in dollar terms, has more than doubled. and-upper income students are able to get sponslb111ty for administering. the federal ~ y If that is true. then the real cost of a col federally guaranteed and subsidized loans guaranteed student loan program in this lege education has increa-sed fa-r more ra-pidly previously available only to students from state. The federal government will provide than the income available to pay for it. It is families with income under $25,000. the commission with a fee to cover their like a candy bar whose price has doubled The legislation passed after Congress costs and wlll re-lns·ure the loans. Lenders even as its weight has been halved; its effec bowed to President Carter's pressure not to are hopeful that the state can do a better tive cost has been quadrupled. pass legislation providing for tuition tax job. Has the value of a college education di credits for parents with children in college. Federal officials concede, the loan program minished? It is a point that can be argued This year, the government expects the vol has been badly mismanaged. The system was hotly. At one level, exposure to the thoughts ume of student loans to expand 60 percent in such disarray at one point that it was and deeds of Chaucer and Kant, Einstein and to 1.6 million borrowers because of the new impossible to determine exactly how many Keynes, Charlemagne, da Vinci and Hamil legislation. Last year about 1 milllon stu student borrowers bad defaulted, although ton is probably just as useful and enjoyable, dents borrowed $762 million. But one ques the estimated figure for last year is 400,000 fo:- its own sake, as it ever was. But at the tion is how many banks will agree to ma·ke carrying loans totaling $400 m111ion. level of dollars and cents, of preparation the loans, federal guarantee and subsidy or To meet this problem, the Carter Admin for a career, a college education no longer not. istration created a new bureau in the Office is seen as so solid a guarantee of future Under the loan program. a student can bor of Education under Deputy Commissioner success. row interest-free a maximum of $2,500 -a year Leo Kornfeld, a former executive in the com "Fifteen years ago, a college education while an undergraduate, and up to $7,500 puter industry. was perceived as a tremendous investment, total. By using computers to identify and locate with a large payoff in terms of future in The student repays the loan at 7 percent nonpayers, Kornfeld's office of compliance come," says David W. Breneman, an econ interest. The lender, however, is subsidized has reduced the number of defaults to 350,000 omist who coauthored the Brookings study on the basis of 7 percent plus the 90-day persons owing a total of $350 m11lion. of college costs. Today, he says, "everyone Treasury blll rate less 3.5 percent. Currently, He hopes to reduce the default rate to knows of someone with a college educ!l lenders would receive 7 percent plus 9.25 about 12 %, a figure considered acceptable, tion who can't get a decent job. It \vas one percent minus 3.5 percent, or 12.75 percent. and better than the default rate on loans thing for parents to sacrifice mightily when The student receives the interest subsidy made by the Veterans Administration and the payoff was certain. But when they see for the four years he is in school and then the Small Business Administration. themselves buying a lottery ticket instead gets a nine-month delay after he graduates. of an investment, they have a different If a student borrowed $2,500 during his The Student Loan Marketing Assn.-a attitude." first, second, and third years of college quasi government agency known as Sallie $7,500 total-he would in effect be receiving Mae-began operation in 1973 to purchase A widespread public view that the value student loans and thus provide more liquid of a college education has declined could an interest subsidy of about $4,240 if he re paid the loan over a 10-year period. This ity to the market. So far, it has purchased help explain the dropoff in attendance rates more than $1 blllion-out of $11.2 blllion among middle class youth. It also could ex assumes interest rates generally will fall back plain the rising sense of burden among to more normal levels. and is exploring new alternatives. those parents who believe that a college Graduate loans are limited to $15,000 less To encourage lenders to make student education, while no longer the golden key the amount of undergraduate indebtedness. loans. Sallle Mae now says it wlll purchase it once was, still is too valuable to be missed, Banks have turned cool on the college loan any outstanding federally guaranteed loans at least by their children. program because of government red tape and which students haven't started to pay back, Unfortunately, there may be no easy way heavy defaults. Some financial aid admin from California lenders at face value, accord to relieve this sense of burden. istrators are concerned that those banks ing to Arthur Marmaduke of the California which do make the loans will parcel them Student Aid Commission. In addition, Same One approach, of course, is for the gov Mae will buy up to $100 million of loans made ernment to pick up the tab for any student out to their best-higher-income-customers, leaving those families who may have a great under the new California program, according seeking a college education-just as it do~s to Marmaduke. now for youths attending high school-with er need out in the cold. direct payments, not just loans or loan guar Bank of America, which is the most active Lenders report they have not yet seen g.n antees. But in an inflationary time, when lender in student loans in the United States, increase in demand. politicians from Sacramento to Washington has cut back dramatically on its lending The Office of Education estimates that are calling for austerity, it may be hard to since 1975. That year, the bank made about fundim~ for the student loan program will justify so monumental a commitment of $70 milllon in student loans-a figure which cost $956 million this fiscal year-$184 mil funds. dropped to $21 milllon last year. lion in defaults, $703 mUllan in interest Another approach would be to offer every And Ronald J. Livermore. head of the subsidies and $69 million for other costs. would-be college student a fixed grant or bank's student loan program, says the bank For next year, the government anticluates voucher that woul1 cover a portion of his or probably will not make more than $30 mil that the cost will only increase by $2 millhm her costs. In effect, this would mean spread lion in 1979--even if demand increases to $958 mllllon. Defaults are expected to de ing around more evenly the same amount of sharply. cline as the program comes under better con money that is spent now. That would make Livermore said the large number of de trol. Even though the Office of Education it easier for many middle class students to faults combined with the administrative has anticipates an increase in loan demand, 1t afford college, and it would make it possible sles of running the program caused the bank expects only a $28 million increase in interest for some of them to attend more exclusive, to reduce its student loan program, which subsidy because it thinks interest rates wm high-cost institutions than they could other- still operates at a loss. fall, and thus so will the subsldy.e 9866 EXTENSIONS OF REMARKS May 3, 1979 THE POLISH CONSTITUTION OF in 1792 by advancing Russians troops, in er taxes, may on the fa<:e of it, seem like a MAY 3 AND HUl\K...AN RIGHTS IN the Kuron's apartment on March 21, good idea, but the results are not as they POLAND TODAY 1979, and on countless other occasions may seem. A program that relies prtm.a.rlly but which ·should never be silenced a~ on trying to balance the budget and tighten long as we can speak.e the supply of money results in the loss of HON. JOHN G. FARY more jobs and production, and the loss of the OF ILLINOIS vital public and private services that we de IN THE HOUSE OF REPRESENTATIVES pend on, with very little effect on the level of inflation. These policies also result in the loss Thursday, May 3, 1979 IMPLEMENTING HUMPHREY of much needed revenues which we can use HAWKINS to serve the critical priority needs of our so • Mr. FARY. Mr. Speaker, distinguished ciety and balance the budget in fact. colleagues, in Poland, May 3 is a day of The fact of the matter is, the American silence. While we commemorate the HON. AUGUSTUS F. HAWKINS people do not want to lose their jobs, do adoption of the Polish constitution of OF CALIFORNIA not want to have to do without the goods May 3, 1791, Poles are unable even to IN THE HOUSE OF REPRESENTATIVES they want, or go without the services they need. When a Hall'Tis Poll on Federal Spend mourn the loss of the liberty, equality, Thursday, May 3, 1979 ing and the Budget was taken in February, and freedom that the constitution of May 1979, overwhelming majorities of the Ameri 3 guaranteed and that they are deprived • Mr. HAWKINS. Mr. Speaker, the ad can people opposed cuts 1n programs that of today. The constitution is more than ministration continues to pursue the provide necessary health care, educational an artifact or an episode in history long same kind of antiquated economic poli programs, environmental protection, assist forgotten. The purpose of its authors was cies which in the past have resulted in ance for the unsk1Iled and unemployed, and to insure the continued existence of Po recessions and increased infiationary help for the elderly, handicapped and the land as a free nation in the face of par pressures. By following an economic poor. titioning by Prussia, Russia, and Austria. plan of low growth, high interest rates, IF CUTTING FEDERAL SPENDING AND BALANCING The present regime forbids any mention and callous neglect for the talent and THE BUDGET WON'T CURE INFLATION, THEN of and ignores the existence of this con energy of the unemployed-we are surely WHAT WILL? stitution, because history has repeated headed toward economic ruin. The answer is already on the law books. itself and the same desire for a free, dem I wish to submit to my colleagues a The Humphrey-Hawkins Act tells us how to documentation of the administration's bring down inflation and unemployment a.t ocratic nation continues to be frustrated the same time and how to undertake pro in the people of Poland today. violation of the Humphrey-Hawkins full grams that will meet our national priorities The constitution's authors were influ employment law and the solutions nec that are currently being neglected. enced by the American Constitution and essary toward a more stable economy. The law emphatioa.lly takes the position, Declaration of Independence as well as by OPTIMUM GROWTH, PRICE STABILITY, AND FuLL and mandates policies, accordingly, that em the needs of the Polish nation. The result EMPLOYMENT: A JOINT VENTURE ploying people to produce needed goods and was a curious mixture of tradition and Question: Do we need a recession to fight services is economically sound, socially de enlightened ideas. Establishing a parlia inflation? sirable, and also, Mlti-inflationaryl mentary system of government, the king Answer: Absolutely no! This law ls the Humphrey-Hawkins Full A strange thing 1s happening in America Employment and BalancOO Growth Act o1 and legislators of the time, wanted to in today. Our economy is in big trouble. We 1978, and unfortunately, the Adm1nistr:a.tion sure that generations of Poles would en have high inflation caused primarily by ex and Congress have, so faa-, disregarded the joy freedom, equality, and individual lib cess! ve price increases and very high profits law's requirements, mandates, and goals. We erty. The constitution was in effect for in the industrial sectors which affect infla base this on the contents of the 1979 Eco only a very short time. Poland was in tion throughout the economy, accompanied nomic Report of the President and the Fls· vaded by Russia in 1792. by painfully high prices in the basic neces cal Year 1980 Budget Message, the actions sities of food, housing, energy and health of the Joint Economic Committee and the Nevertheless, every Pole remembers Budget Committees of the House and Senate. those ideals on May 3. Here in the United care. We have continuing high r:ates of un employment, with joblessness for Blacks, oth This is how the Humphrey-Hawkins Act is States. where our personal freedom is er minorities, and young people running being violated: honored, we celebrate with parades and more thBin twice the overall rate. These high Humphrey-Hawkins requires-In Section speeches. In Poland, they must be silent. rates of inflation and unemployment are ac 103 of the Act, that the 1979 Economic Report There, human rights are not recognized companied by low mtes of pll"Oduotivity; un of the President "shall be consistent with and often :flagrantly violated. derut111zation of other production capab111- achieving as rapidly as feasible the goals of The most recent example of the outra t1es; and sky-high interest rates. full Employment and production ..." and geous lack of respect for individual lib Despite this situation, we find many Section 104 says that the 1979 Economic elected and adininistration officials resorting Report shall include "interim numerical erty is that of Jacek Kuron. He and mem to discredited remedies to help us overcome goals for reducing the rate of unemploy bers of his family were severely beaten our eoonomic d'i.fficul ties. They urge: ment . .. to not more than 3 percentum and wounded, because of their participa "Tighten the money supply and increase in among individuals aged twenty and over and tion in the "free university,'' a clandes terest rates" "Slash social programs" "Cut 4 percentum among individuals aged sixteen tine organization that teaches economics, jobs pro~a.ms to bring down inflation" and and over within a period not extending be history, and politics in an unbiased man "Let's Risk a Recession". yond . .." 1983. ner. A lecture that was to take place at These "remedies" have been tried before Violation-The Adininlstration's policies the Kuron's apartment had been can and they have failed before each of the five are expressly geared to increasing unemploy celed because Kuron's father had had a most recent periods of stagnation and reces ment from the official rate of 5.9 percent at sion. Now, they are being tried again, when the end of 1978 to 6.2 percent in 1979 and heart attack. An ambulance was called, economic stagnation is already here and a but failed to arrive. Instead, 50 men with sixth recession is on its way! 1980. This deliberate move upward instead of downward violates the Act. If the restraint night sticks 1broke into the apartment, The President's advisors and many law beating several members of the family makers have the perception that the Ameri programs are implemented and continued, and a few friends so brutally that they can public strongly believes that these economic forecasters outside of the Adminis were in severe shock and lost conscious "remedies", including cuts in Federal spend tration predict even higher rates of unem ing, and trying to achieve a balanced budget, ployment. The Act and its legislative history ness. Meanwhile, the elderly father who will cure inflation. Although, economically, make it crystal clear that the reduction of witnessed the brutality of the attack suf this could not be further from the truth, unemployment is mandated to begin in 1979, fered from a second heart attack. policies are going in that direction due to not in 19811 What a contrast to the enlightened de these erroneous political perceptions. Section 1"04 also states, "Upon achievement mocracy that the Polish lawmakers of Aocording to the Conga-essional Budget of the 3 and 4 percentum goals ... each suc 1791 envisioned for their people. Such Office, "overall, the administration's cuts in ceeding Economic Report shall have the goal actions can only be called barbaric and spending relative to current policy are not of achieving as soon as practicable and main condemned by all of us, because the Poles expected to have major etrec1is" on inflation, taining thereafter full employment ..." themselves cannot do so. We must act as " ... estimated to lower the inflation rate The President's 1979 Economic Report sets (only) 0.2 percentage points in 1981", while a goal of 4 percent unemployment for 1984, their voice. Therefore, we should stop for the cuts are expected to lift unemployment thus ignoring the effort to reach true full a moment as we celebrate, to think of even more than the Administration's 1979 employment. how we can best be that voice. We must and 1980 goal of 6.2 percent. Cutting Federal Humphrey-Hawkins requires-An economy be the voice of freedom that was mufiled spending, with its implied possibllity of low- that expands, year by year, enough to restore May 3, 1_979 EXTENSIONS OF REMARKS 9867 and then maintain full production. This is lates the Act. The law requires that specific which gives consideration to the needs of the as basic t o the objectives of the Act as is t he methods be initiated at once, to lower the un economy and the people in the priority areas full employment objective. It is necessary to employment rates of the specific groups. This, (emphasis added) ... and the relationship meet the pressing national priorities, listed too, has not been set in motion. between the President's expenditure and rev in the Act, which are essential to the achieve Humphrey-Hawkins requires-That full enue proposals shall be decided accordingly." ment and maintenance of full production, employment and full production go hand Humphrey-Hawkins requires-"A balanced in-hand, because jobs alone are not enough. budget consistent with the achievement of full employment, and high productivity, and the goals for the reduction of unemploy which meet our social and economic The Act makes it clear that full employment, without full production, deprives the econo ment." The act also explicitly states that the responsibilities. Federal Budget shall be supportive of the Violation-The Administration's real eco my and people of immense amounts of goods and services required to support goals and policies of the Act. n~mic rate growth goals call for a reduction economic progress and rising standards of Violat ion-Administ ration policies are de from 4.3 percent in 1978 to 2.2 percent in living, especially among the poor and eco signed to increase unemployment for at least 1979, and 3.2 percent in 1980, for an _annual two years, to stunt real economic growth and average of 2.7 percent, while calling for an nomically disadvantaged. Only full produc tion generates enough tax revenues at all the movement toward full production, tone average of 4.4 percent during 1981-1983. This glect nat ional priority needs, and to reduce equals an average of 3.8 percent for the five levels of government to adequately service the national priorities which depend on pub year by year the ratio of Federal budget year period 1979-1983. outlays to GNP. A 3.8 percent average annual real rate of lic outlays, both directly and in support of private sector initiatives. Adequate produc Section 104 says that only, "Upon achieve economic growth cannot even prevent unem ment of the 3 and 4 percentum goals" for ployment from rising. It has been estimated tion, in turn, depends on a good rate of productivity growth-growth in output per the reduction of unemployment shall "each that an average annual rate of about 4.4 succeeding Economic Report have the goal percent is needed to hold unemployment hour worked. Violation-The Administration's policies of achieving as soon as practical and main constant and optimize real gross national have already contributed to economic stag taining thereafter full employment and a product (GNP) growth when we are at or nation (annual rate of real growth in first balanced budget." To attempt the self-de near full employment. When unemployment quarter 1979 was only about 1 percent) and feating process of balancing the Budget at is as high as it is now, and industrial capac runs the risk of a recession because of their the expense of the economy and the people ity below optimum use, an average annual restrictive nature. The Economic Report of is in violation of the law. real growth rate in GNP of about 5.5 percent the president states that a very sharp re The huge deficits in the Federal Budget is necessary to meet the unemployment re duction in the average annual real growth have been due almost entirely to the chron duction goals for 1983 mandated in the rate in GNP is made necessary by very low ic rise in unemployment and to the growing Humphrey-Hawkins Act. We have averaged rates of annual growth rate of productivity, gap between actual production and full this growth rate several times before, and we which has been only about 1.5 percent an production. can do it again. For example, in 1949-1953, nually, with goals for 197R-1983 also being Humphrey-Hawkins requires-Balanced real economic growth rate averaged 6.5 per set at 1.5 percent. A look tl.t past statistical economic growth. cent and in 1961-1966, it averaged 5.4 per evidence shows, however, that the produc Violation-The Economic Report sets cent, both periods when we moved from high tivity growth rate falls to a very low, or even goals for real growth rate"> in consumer buy economic slowdowns to reasonably full em a negative rate, only when the economy is ing power of only 1.7-2.5 percent, and in ployment and production. suffering from huge idleness of manpower Federal purchases of only 0.75-1.25 percent, A five-year average annual real economic and plant and other production resources, while setting a goal of 4.0-4.5 percent in growth rate of 3.8 percent cannot come any while it rises to around 3.5 percent when the nonresidential fixed investment, which is where near to reducing unemployment to 3 economy is moving at adequate speed toward, designed to enlarge and improve production percent for adults and 4 percent overall, by or enjoys, reasonably full resource use. The capab111ties. Although there is a need for a 1983. A 2.7 percent average growth rate dur low productivity growth goals are really an more rapid expansion in the growth rate of ing the first two years would require a inseparable by-product of the depressed goals fixed investment, the fact that it is 2 or 3 whopping 7.2 percent average during the last for reduction of unemployment and for real times as high as consumer expenditures plus three years to accomplish these unemploy economic growth. This is in violation of Federal outlays cannot be supportive of the ment reduction goals-a rate never attained Humphrey-Hawkins. The Act calls for meas balanced growth objectives of the Act. So in the past 25 years! A "paper declaration" ures to bring about a high rate of produc imbalanced a composition of growth would by the Administration that it will, starting in tivity growth because it combats lnfiation, lead again, as in the past, to so-called over 1981, move toward reaching the unemploy while a low rate encourages Inflation. Also, capacity and then to stagnation and ment goals in 1983 can not be taken seriously a high rate of productivity growth is essen recession. when accompanied by growth rates for 1979- tial to the optimum expansion of total pro Humphrey-Hawkins requires-"That poli 1983 which cannot possibly reach this objec duction or GNP. cies and programs for reducing the rate of tive, and by policies and programs such as Humphrey-Hawkins requires-The follow inflation shall be designed so as not to im those proposed by the Administration. ing policies and programs to be considered pede achievement of the goals and time Humphrey-Hawkins requires-That one of when coordinating Federal policy: develop tables . . . for the reduction of unemploy the main purposes of the Act is the sharp re ment of energy sources and supplies; trans ment". This means that it is unlawful to use duction of the high unemployment rates of portation, environmental improvement; the so-called economic "trade-off" of more certain labor force groups. Specifically, Sec small business assistance; agricultural policy unemployment to reduce inflation, because tion 104 says that every effort, "be made to directed toward full supplies and fair treat the Congress has found that more unem reduce those differences between the rates of ment of the rural population; attention to ployment increases inflation, and vice-versa. unemployment among youth, women, minor the needs of urban areas; adequate Federal Violation-Administration policies to in ities, handicapped persons, veterans, middle aid to health care, education and training crease unemployment for two years is in aged and older persons . . . and the overall programs, child care and other human serv direct violation of the Act. As the legislative rate of unemployment which are caused by ice3, and housing; policies concerning Fed history indicates, the Act's purpose was to any improper factors with the ultimate ob eral aid to State and local governments; and prohibit the "trade-off". There is not one jective of removing such differentials.... " national defense and other international word in the Act which justifies waiting for The Act calls for the use of structural pro programs. two years before taking measures to lower grams which are targeted to aid the groups Violation-Aside from the area of national unemployment. The Administration's poll who are suffering from disproportionate un defense, the Administration's policies are cies are tantamount to rewriting the law to employment rates, such as youth and mi moving in the opposite direction. Overall say the prohibition against the trade-off norities, and others as listed above. Decreases Federal outlays for domestic programs are should not begin until 19811 The implica in unemployment, through the use of tar declining. When measured in uniform dol tion is that it can again rewrite the law in geted structural programs, have proven lars, the amounts allocated to many of these 1981 if it stm elects to resort to the "trade highly effective in assisting the employment domestic priority programs are moving back off". opportunities of these labor force groups. ward instead of forward and are getting to The Economic Report overlooks the eight Violation-Historically, increases in total be a smaller part of estimated GNP. point program for overcoming inflation In unemployment have widened the differences If cuts in total demand were needed to Section 109. This program offers reasonable in the unemployment of the above labor fight inflation (a theory with which we do achievement of the 4 percent unemployment force groups and the overall average. In fact, not agree, anyway) the cuts should be goal. in recent months, even a slight reduction in through tax increases directed toward the For Instance, Administration policies offer the total unemployment rate has been ac atlluent and not toward the types of spend no "effective Information system to monitor companied by increased rates among Blacks ing which serves the well-being of low-in and analyze inflationary trends"; no ade and other minorities and youth. The sharp come people and the large majority of quate "programs and policies for alleviating reduction of these differences is one of the middle-income people. shortages" by restrictive policies and pro main purposes of the Humphrey-Hawkins Humphrey-Hawkins states that. "The size grams in some areas where the shortages are Act, and policies intended to raise overall un of the President's expenditure and revenue the greatest and the Inflationary pressures employment will have disastrous results on proposals, and the relationship between such are the most acute, such as food, housing, the rates of these groups, and directly vio- proposals, shall be determined in a manner energy and health care. 9868 EXTENSIONS OF REMARKS May 3, 1979 Humphrey-Hawkins requires-Structural match repayment to rising earnings, in partment of Education; Loren Carlson programs, a.s outlined 1n Title II of the Act, stead of being saddled with heavy pay to serve a.s a. back-up to monetary and fiscal of Blythe Eastman, Dillon & Co., an in policies. ments in their first, relatively low-earn vestment banking firm which has taken a Violation-The Administration's budget ing years out of school. It will make lead role in underwriting bond issues to cuts, in the exact areas in which the Act en GSL's-and grants-easier to get by help finance State guarantee agency ac courages more structural measures, is 1n providing an easy way for school finan tivities; and Stephen P. Dresch of the direct violation of the intent of Humphrey cial officers to package loans with other Institute for Demographic and Economic Hawkins. These areas include employment assistance, encouraging all grant and Students