July 22, 1981 EXTENSIONS OF REMARKS 16935 EXTENSIONS OF REMARKS SECTION 22 TESTIMONY I have worked for lower tariff rates on flue-cured tobacco farm in Pitt County, U.S. tobacco entering the European commu North Carolina, over the past six years has nity and other areas of the world. At my re ranged from 5.2 percent in 1975 to an aver HON. CHARLES ROSE quest a group of farmers went to Europe to age of 3.7 percent in 1978-80. For the farm OF NORTH CAROLINA talk with tobacco buyers and manufacturers owner who received one-fourth share of the IN THE HOUSE OF REPRESENTATIVES as a follow up to preliminary discussion crop as rent, profit as percent of tobacco which I had there. sales price rose from 2.8 percent in 1975 to Wednesday, July 22, 1981 As you can see, I have a close familiarity an all-time high of 13.0 percent in 1978 and e Mr. ROSE. Mr. Speaker, on June 24, with the tobacco program. And I fear that then fell to 11.2 percent in 1979 and 4.5 per 1981, the International Trade Commis program is endangered today. cent in 1980. sion held hearings in its section 22 in The flue-cured tobacco program that we These and other data available on the Pitt have today has evolved over a period of 48 County farm show that by any standard of vestigation on the importation of for years, and it is a great success story. eign scrap tobacco and its effect on measurement used in business today, the Since 1965 the control program has been profits have not been excessive. the U.S. tobacco price support pro based on both acreage allotments and gram. poundage marketing quotas. This means the In one respect the tobacco program occu Among those persons testifying at grower is limited not only as to the acres he pies a unique place in the agricultural histo can plant but also the pounds he can sell. ry of America. It has been in operation for this hearing was North Carolina Gov more than four decades, and its cost to the ernor Jim Hunt. I would like to share These are the tightest controls ever applied to a major farm commodity in the United federal government during that period of with you his comments. States. time has been very small. In fact, tobacco TESTIMONY BY GOVERNOR JIM HUNT-INTER In referendum after referendum, flue growers have received less than one percent NATIONAL TRADE COMMISSION HEARING ON cured growers have voted overwhelmingly of the federal funds spent on all types of ScRAP ToBAcco to continue their supply control and price commodity support programs over the past Mr. Chairman and Members of the Com support program. Usually the proportion of 50 years-or for that matter during the mission: Thank you for allowing me to favorable votes has been between 95 and 98 entire history of the country. appear before you today. As Governor of percent of the total number cast. I submit that tobacco growers have reason the nation's largest tobacco producing and Growers have had to make genuine sacri to be proud of their program and of the manufacturing state, I am deeply interested fices in order to keep their program. There part they have played in keeping the pro in matters affecting the future of the tobac have been many times in the past 30 years gram on a sound basis. Despite the fact that co industry. when they had to accept sharp quota reduc all segments of the tobacco industry have I am here today, at the request of the tions. Just since 1975, the basic flue-cured been caught up in a "technological tornado" North Carolina Farm Bureau, to emphasize quota has been reduced by about one-third. over the past 30 years, tobacco growers have to you the importance of the tobacco indus A 40-acre allotment in 1975 would have been able to maintain the basic principle of try-and the tobacco quota and support pro shrunk to only 27 acres in 1981. their program-control of supply in return gram-to the people of my state. It has not been easy over the years for for fair realistic price support-even though In 1979, tobacco provided jobs for 148,000 growers to live with these quota cutbacks, structural modifications became necessary North Carolinians. That includes 44,000 but growers know that the cutbacks were es from time to time. farmers who depend on tobacco for a liveli sential in order to make the program work. In the past few years, however, our tobac hood. It includes many small farmers. They have also made it work by continuous co farmers have become worried by the In two recent years <1978 and 1980), the fine-tuning of various features of the pro rising tide of imported leaf. According to gross income from tobacco on North Caroli gram. the North Carolina Farm Bureau, in 1969 na farms exceeded $1 billion a year. Under the tobacco program, growers have imports amounted to 237 million pounds, or In 1978, the latest year for which compre efficiently produced an adequate domestic only 18 percent of the tobacco used in ciga hensive figures are available, North Caroli and export supply of quality leaf. All seg rettes. By 1979, imports accounted for 31 na farmers received gross income of $1.1 bil ments of the industry and all sectors of the percent e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. 16936 EXTENSIONS OF REMARKS July 22, 1981 supply of land needed for tobacco produc This system is carefully balanced, depend gressional authorization and oversight tion. ing on the cooperation and understanding process. We wish him well in his next Foreign countries have subsidized their to of the farmers, the warehousemen, the bacco exports in order to earn the U.S. dol manufacturers, the importers and export career and hope to see him soon again lars they need for international exchange. ers, the retailers and wholesalers, and local, on the Hill, though hopefully not as a The Office of Monopoly in the Republic state and federal governments. lobbyist. General Graves can be proud of Korea, for example, supplies farmers Now, this careful balance is threatened by of his service to the Nation. Congress with fertilizer, seeds, chemicals, covers, ma the high amounts of imports. will miss him.e terials for drying sheds and so on. Growers The tariff system must protect the farm receive the equivalent of $1.64 per pound, ers in a reasonable way, if they are produc farm sales weight, and export the tobacco ing efficiently. The growers need immediate IN SUPPORT OF HOUSE through joint ventures with international help to deal with the problem of imports. I RESOLUTION 181 leaf dealers to the United States for $1.44 am here today to ask that they be given all per pound, processed weight. It is obvious the help possible, as quickly as possible.e that subsidies are involved. HON. THOMAS M. FOGLIETTA All of these factors have contributed to OF PENNSYLVANIA the flood of imports. GEN. ERNEST GRAVES LEAVES IN THE HOUSE OF REPRESENTATIVES And Stabilization loan stocks have in THE PENTAGON creased despite repeated reductions in the Tuesday, July 21, 1981 national marketing quota, voluntary efforts HON. LEE H. HAMILTON e Mr. FOGLIETTA. Mr. Speaker, had to limit the harvest of lower-quality tobacco I been present in Washington on July and the elimination of price supports on OF INDIANA eight grades of lower-quality tobacco. IN THE HOUSE OF REPRESENTATIVES 21, 1981, I would have cast my vote in The U.S. Department of Agriculture esti Wednesday, July 22, 1981 support of House Resolution 181, a mates that, because of increased imports, resolution opposing minimum social about 140 million pounds of domestically e Mr. HAMILTON. Mr. Speaker, it is security benefit cuts. grown flue-cured tobacco have been divert with regret that I learned recently The following statement was to be ed into Stabilization loan stocks. This tobac that Lt. Gen. Ernest Graves, Deputy read at the senior citizen rally on July co had an estimated loan value of $172 mil Assistant Secretary of Defense for Se 21, 1981: lion by the end of the 1979 season. The De curity Assistance, and Director, De I thank you for your presence here in partment estimates that 38 percent of total fense Security Assistance Agency, will Washington today. Your visit will open the loan stocks in Stabilization will be under be retiring from military service at the loan because of increased imports. eyes of the nation to the status of senior Recent actual realized losses to the Com end of this month. citizens in this country. modity Credit Corporation, the funding During 36 years of military service, I am sorry that I am unable to be with agency for Stabilization, have been small. he established a reputation as a solid you in person, but urgent business requires For the 10-year period ending September 30, soldier, creative scientist, effective ne my presence in Philadelphia. However, I am 1980, price support charge-offs have been gotiator, and efficient innovator. A with you in spirit. $5.8 million, including a $5.2 million charge graduate of West Point, with a doctor When I took office last January, I had two off for fire loss. Gains to the CCC by collat goals: to serve the needs of the people, and ate in physics from the Massachusetts to be an effective and compassionate legisla eral fees paid by associations have been $4 Institute of Technology and a stint at million. Thus, the net loss for the most tor. I believe that Senior Citizens have recent 10-year period was $1.8 million. the Harvard Business School, General earned the right to a dignified retirement. Potential losses to the CCC could be sub Graves brought unique qualifications You should have economic security. You stantial in the near future if excessive in to his last and very important and sen should have access to the medical services ventories are sold at prices that do not cover sitive assignment as Director of the which you need. It is difficult to support the value of the collateral plus accrued in Defense Security Assistance Agency yourselves . with double-digit inflation and terest and carrying charges. The USDA esti 79-059 0 - 85 - 17 (Vol. 127) Pt. 13 16950 EXTENSIONS OF REMARKS July 22, 1981 And its failure will drag us all down with Don't shrug off Mrs. Thatcher as a bun REMARKS OF WARREN E. BURGER, CHIEF Jus it. gler, Mr. President! What she has tried we TICE OF THE UNITED STATES, AT THE COM Every other part of this economic policy, are trying, too. Retreat on your tax cuts, MENCEMENT EXERCISES FOR GEORGE WASH which has dominated U.S. domestic policy concentrate on slashing our budget defi INGTON UNIVERSITY SCHOOL OF LAW making since Reagan took office, may be cits-or your economics will fail, Sir. put properly in place (quite an assumption The ancient American · custom of com That's what our own markets are warning mencement speeches is an innocuous one of its own, but let's assume it>. you, too.e This means our destructively steep tax that has done very little harm to graduates rates on investment would be reduced to en and may have the benefit of teaching them courage business to take more risks on the virtue of patience. And parents, now re building new plants and equipment and OTTO A. TENNANT leased from paying the inflated rate of thereby to spur our productivity. It means keeping a student in college, are bound to be our taxes on earnings would be so revised in such a happy mood today that no speech that they would discourage devil-may-care HON. NEAL SMITH could depress them! spending by us, as individuals, on things and OF IOWA I have no talent in framing ~osmic re non-things of temporary value. It means the IN THE HOUSE OF REPRESENTATIVES marks about the future which terminate growth in. our money supply would be cur with a "handing of the torch" to the survi tailed to force cutbacks in extension of Wednesday, July 22, 1981 vors of three years of the rigors of a law credit for wasteful projects. school. My training as a lawyer is to try to Even nature would get on our side by • Mr. SMITH of Iowa. Mr. Speaker, it identify problems and seek solutions. That turning out huge crops and thriving cattle is with great pleasure that I take this will now be your role. herds to curb food price increases. And geo opportunity to congratulate Otto A. If there is a "torch" in the problem I dis politics would throw a couple of aces our Tennant, P.E., of Des Moines, Iowa, cuss today, it is one that will singe your way by producing oil surpluses. who was recently elected president of hands and burn your pocketbooks in the None of it would be enough to give supply the National Society of Professional years ahead-probably for the rest of your side economics a chance to work and send us Engineers. NSPE is a nationwide orga lives. Not serious burns, but some. into another era of sustained prosperity nization representing 80,000 indiviudal Now let me tell you why it is important. unless there also are great slashes in our In my annual report to the American Bar huge annual federal budget deficits. There members involved in all aspects of en gineering. Association recently, I discussed the appall ductions must be spectacular enough to ing and increasing rate of crime and our ap quash the expectations of inflation, which Before taking on this most prestigi parent inability to cope with it. Since then, are self-fulfilling prophecies. The balanced ous position, Otto served as vice chair two particularly gross criminal acts have budgets can be postponed. man of NSPE's north-central region shocked the entire world, and underscored This is the sobering lesson being shouted the point. to us by our ally Britain, under Prime Min and Professional Engineers in Indus ister Thatcher. try. He also served as chairman of the I reminded the American bar that govern Thatcher took office in May 1979 with the NSPE Legislative and Government Af ments were instituted by people primarily goals of cutting British government spend fairs Committee. for their collective protection. Our own ing, reducing high tax rates on investment system of government, established 200 years Otto holds a B.S. degree in general ago-as it has envolved-affords more safe and earnings, curbing the growth in the engineering from Iowa State Universi money supply, revitalizing productivity, and guards, more protections, and more benefits bringing down the rate of inflation. That's ty and an M.A. in economics from for a person accused of crime than any "us," isn't it? Drake University. other system of justice in the world. The At that time, the index of government Currently, Otto is manager of indus resolution of guilt is marked by characteris spending <1975-76 equals 100) was 90.5; in tics which make our system unique in the trial marketing and technical services world: 1980-81
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