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Extensions of Remarks August 5, 1987 EXTENSIONS OF REMARKS 22671 EXTENSIONS OF REMARKS GILMAN AGAIN URGES COL­ colleagues who have not yet done so to co­ and do not intend to provide double tax bene­ LEAGUES TO GRANT COMBAT sponsor H.R. 1235. fits, but we can help by freeing up IRA funds MERCHANT MARINERS OF without tax penalty for the purpose of pur­ WORLD WAR II VETERANS' chasing a first home. STATUS THE HOMEOWNERSHIP Mr. Speaker, this bill does not cost the OPPORTUNITY ACT OF 1987 Treasury or the American taxpayers any money. We already defer taxation on these re­ HON. BENJAMIN A. GILMAN HON. TOM LANTOS tirement funds. All this legislation does is OF NEW YORK OF CALIFORNIA make it possible to use these funds, without IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES penalty, in order for more Americans to have Wednesday, August 5, 1987 Wednesday, August 5, 1987 a part of the American dream. Mr. GILMAN. Mr. Speaker, I would like to Mr. LANTOS. Mr. Speaker, having a home take this opportunity to bring to the attention of one's own is-and remains-the quintes­ LESSONS TO BE LEARNED FROM of my colleagues a recent landmark decision sential symbol of the American dream. Noth­ THE IRAN-CONTRA HEARINGS by U.S. District Court Judge Louis F. Ober­ ing typifies our American way of life more than dorfer who overturned the refusal by the De­ the ability of normal, working people to house HON. ROBERT J. LAGOMARSINO partment of Defense to approve veterans themselves and their families in a decent OF CALIFORNIA status for our merchant marines. home at a reasonable cost. IN THE HOUSE OF REPRESENTATIVES During the 95th Congress, an act was In recent years, however, it has become in­ adopted which gave the Department of De­ creasingly difficult, sometimes even impossi­ Wednesday, August 5, 1987 fense authority to confer veteran status on ble, for middle-class Americans to purchase a Mr. LAGOMARSINO. Mr. Speaker, now that groups that participated in the war effort. Al­ home-especially a first home. Inflation, a the public phase of the Iran-Contra hearings though several groups, such as the Women's period of high interest rates, and demographic has ended, I think there are a number of pre­ Army Auxiliary Corps and the Women's Air factors have all contributed to this situation. liminary conclusions which can be drawn. Force Service Pilots, were granted such Nowhere is this more evident, unfortunately, As my colleague, DICK CHENEY, the ranking status, merchant marines, who had a casualty than the San Francisco Peninsula which I rep­ House Member on the committee, has noted, rate comparable to the Marine Corps, were resent. There skyrocketing costs of housing the hearings show us several things. First, as denied their request on very technical have simply priced many people out of the the President himself has said, mistakes were grounds. After exhausting the application pro­ housing market. made. Selling arms to Iran was a mistake. The cedure, the merchant mariners brought their As chairman of the Subcommittee on Em­ diversion of funds from the arms sale to the case before the courts. Judge Oberdorfer ployment and Housing of the Government Op­ Contras was a mistake. The delay in notifying ruled that the Defense Department has failed erations Committee, I recently chaired a hear­ Congress was a mistake. to substantiate its ruling against them. The ing in White Plains, NY, the home of the rank­ At the same time, there are some mitigating judge could declare World War II merchant ing minority member of the subcommittee, my factors, which, while they don't justify the mis­ marines active duty veterans or he could friend and colleague, Congressman JoE DIO­ takes, do help in understanding them. For ex­ order the Pentagon to reconsider their request GUARDI. There we examined whether the FHA ample, there is the need, still evident today, to within explicit guidelines. Lawyers from both mortgage program, which has been the back­ develop better relations with moderate, or sides will submit further arguments in early bone of the Federal effort to help middle more accurately, less radical, factions in Iran. August. America buy affordable housing, is effective in Another mitigating factor is the President's Judge Oberdorfer is to be commended for high-cost areas. In Westchester County, as in continuing concern over the fate of the Ameri­ his decision. Unfortunately, this is long over­ my own congressional district, the average can hostages. And finally, there is the fact due and had to occur because Congress has cost of a home is at least twice the maximum that classified information given to Congress neglected its duty for about 40 years. More­ amount available through an FHA-insured in confidence, often winds up becoming public over, while the judge's decision seems to mortgage. Average home buyers, especially knowledge. have paved the way for recognizing combat first-time buyers, young families, find it impos­ I think it is also important to note that the merchant mariners as veterans, the issue is sible to get started in a home, and they are President has cooperated fully and completely still not even resolved. I believe that we in falling farther behind with each passing year. with the select committee. He ordered admin­ Congress should send a clear message to the A number of policy changes can help make istration witnesses to cooperate fully with the Department of Defense and the American it possible for first-time home buyers with committee, never claiming Executive privilege. people that we consider those brave mer­ middle-class incomes to take part in this He provided thousands of pages of docu­ chant mariners who risked their lives in de· aspect of American life. The legislation which I ments, classified and unclassified, including fense of our Nation to be veterans. am introducing today is one step in that direc­ even access to his own personal diary. He Accordingly, I would like to again bring to tion. created the Tower Commission, cooperated the attention of my colleague H.R. 1235, a bill H.R. 3076 will amend the Internal Revenue with their investigation, and took their criti­ introduced by my colleague from New York, Code to make it possible for first-time buyers cisms to heart. He supported the call for an Mr. BIAGGI. While this bill is not perfect, it to transfer funds from their IRA accounts or independent counsel. He replaced the top does send a clear message to the Defense other annuity accounts for use as a down pay­ staff of the National Security Council. It takes Department in support of the merchant mari­ ment on a first home, without a tax penalty a strong leader, confident of his own actions, ners. Furthermore, should further delays occur which would be required if they withdraw to willingly subject himself and his administra­ in granting merchant mariners veterans' funds for other reasons. tion to thorough investigation, which he did. status, H.R. 1235 would be a viable legislative The legislation includes appropriate safe­ Also, I think it is important to point out what vehicle to accomplish that goal. These men guards to prevent abuse: The maximum these hearings did not show. There was no simply want to be recognized for the vital con­ amount which may be used in this way is evidence that the President knew of the diver­ tribution they made to the war effort. It is $1 0,000; and the tax basis of the house will sion of profits from the arms sale to the Con­ about time that our merchant marines receive be adjusted accordingly so that, upon sale or tras. There was no evidence that the Presi­ this due recognition. Accordingly, I urge my rollover, tax will be collected. We do not need dent tried to conceal the diversion; in fact, it e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. 22672 EXTENSIONS OF REMARKS August 5, 1987 was his Attorney General who discovered and TRIBUTE TO GENERAL CHAPTER GORBACHEV Is GOING OVER KOHL'S HEAD To announced the diversion. 64 OF THE DISABLED AMERI­ Woo NEw GENERATIONS oF GERMANS So what lessons can we draw from the CAN VETERANS <By Frederick Kempe) hearings? I think there are several. First, there WASHINGTON.-The Soviet Union has ma­ is the policy question. What should we do HON. JOE KOLTER neuvered West German Chancellor Helmut about the American hostages, and about the Kohl into a corner over 72 militarily insig­ OF PENNSYLVANIA nificant missiles. But its real aim is to general situation in the Middle East? I don't expand its influence on West German poli­ know the answer to this very complex ques­ IN THE HOUSE OF REPRESENTATIVES tics at Washington's expense. tion, but I think we need to acknowledge that Wednesday, August 5, 1987 A vital part of this plan is a Soviet effort the problem still exists, and is liable to persist to bypass Mr. Kohl and other conservative Mr. KOL TEA. Mr. Speaker, today I rise to for some time. Already, the Soviets are leaders and reach out to a younger genera­ honor the General Chapter 64 of the Disabled making their moves in Iran. We need to devel­ tion of Germans who don't share their American Veterans for 50 years of dedicated elders' fears of the Soviet Union or see the op a coherent policy and to mobilize the Con­ service.
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