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Home , Earl Wilson (politician), Frank Fahrenkopf, Neil Goldschmidt, Oliver North

March 5, 1987 EXTENSIONS OF REMARKS 4921 EXTENSIONS OF REMARKS AN INNOCENT VICTIM OF THE tions in the developing world. As envisioned, BERLIN SCANDAL the Endowment would be a private, non­ profit entity that would openly fund democ­ racy-building programs carried out by insti­ HON. LES AuCOIN HON. ROBERT J. LAGOMARSINO tutes associated with labor, business, our OF OJI' CALIJl'ORNIA two major political parties and other pri­ IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES vate-sector organizations. Thursday, March 5, 1987 Thursday, March 5, 1987 Believing that the work of promoting de­ mocracy could most effectively be carried Mr. AUCOIN. Mr. Speaker, I'd like to include Mr. LAGOMARSINO. Mr. Speaker, in the out by the private sector, Congress author­ for my colleagues attention today an extreme­ course of reporting on the activities of Lt. Col. ized funding for the Endowment and not ly thoughtful and reflective article on Berlin Oliver North, the Times, February the package of programs called Project De­ written by a man I am proud to count as a 15, published a report wrongly stating that the mocracy. This approach gained the Admin­ very special friend. Shepard Stone is the di­ National Endowment for Democracy was "the istration's full support. rector of the Aspen Institute in Berlin, and is public arm of project democracy," an alleged This history is important because it shows one of only four non-Germans to have been covert project of Lieutentant Colonel North. that from the very beginning Congress made honorary citizen to the city. It's been my The National Endowment for Democracy is, in placed a high value on the private, biparti­ great pleasure to have participated with him in fact, an independent, nongovernmental orga­ san character of the Endowment and its in­ several high-level meetings with our European nization governed by a bipartisan board of di­ dependence from the current or any future allies, and his reflections on the city that was, rectors. It operates openly and is responsive Administration. and is, Berlin, are well worth reading. I com­ to the needs of private groups abroad working Under the leadership of a broadly repre­ sentative board of distinguished Americans, mend them to my friends here on the floor, peacefully to foster democratic institutions. the Endowment has made great progress. It especially now, in the year in which Berlin A commentary by and has developed strong oversight procedures celebrates its 750th anniversary. I think we Frank Fahrenkopf in the February 23 edition pertaining to the selection, monitoring and have much to learn from Shep Stone, and of makes clear the open, evaluation of all grants. It reports fully to from his understanding and appreciation for bipartisan character of the National Endow­ Congress on its activities and, as required by this vital and thriving city. And since this ment for Democracy. I urge my colleagues to statute, keeps the State Department in­ marks his final year as director of the institute, read this commentary and use its information formed as well. The commitment to open­ let me take this opportunity to thank him for to respond to any unfounded charges about ness has always been fundamental to the his many contributions and to wish him well in the nature of the endowment. concept and actual operation of the Endow­ his future endeavors. CFrom the New York Times, Feb. 23, 19871 ment. BERLIN: A DOUBLE CELEBRATION-LoOKING AN INNOCENT VICTIM OF THE IRAN SCANDAL In all cases, the Endowment has been re­ BACK ON THE PLACE WHERE EvERYTHING sponsive to the democratic needs and initia­ Fahrenkopf, Jr.> that internally generated change is prefera­ WASHINGTON.-Because so much remains ble to change that is artificially imposed BERLIN.-For almost 60 years I have had unknown about the Iran-contra scandal, in­ from the outside. an affair with Berlin. Like all affairs, it has formation frequently comes out in the form The Endowment's work covers a wide had its ups and downs. Not long ago, Alan of revelations that may contain only part of range of countries. In the Philippines, Haiti, Bullock, the English historian whose biogra­ the truth and can be badly misleading. If we phy of Hitler remains the standard, suggest­ are not careful, many good and innocent Taiwan, Guatemala, South Korea, Chile ed that the history of the 20th century people doing very worthwhile things could and Paraguay, its programs have supported should be written from Berlin. be harmed. or are helping to stimulate a process of For good or evil, in peace and war, in in­ A case in point is the recent disclosure democratic transition. In developing democ­ dustry, science, arts and culture, as an ex­ that the White House, under the direction racies such as Argentina, Peru and Colom­ ample for the melancholy and the potential of Lieut. Col. Oliver L. North, was carrying bia, as well as in the Caribbean and Central richness of life in a metropolis, few cities out secret activities under something called America it provides aid to groups seeking to have had a larger role in shaping the cli­ Project Democracy. According to the report, consolidate democratic institutions and pro­ mate and events of our century. And for the project's "public arm" is the National cedures and to strengthen the commitment many of these years, as a student, journal­ Endowment for Democracy, a private, bipar­ to democratic values. ist, in the army, in government and in a pri­ tisan organization established to strengthen The Endowment is also engaged in the dif­ vate capacity, I have been, off and on, a part democratic institutions in the world. ficult job of encouraging pluralist trends in of it. The allegation that the Endowment has the closed societies of the Communist world. It started in May 1929, when a Dartmouth any relationship whatsoever to Colonel Even in societies wracked by conflict, such professor, knowing of my urge to do gradu­ North's activities, whatever they were, is en­ as South Africa, Afghanistan, Northern Ire­ ate work in Europe, said "Go to Berlin." tirely unfounded. Even the suggestion that land and Nicaragua, it supports those who Why Berlin-my German was fragile to the Endowment is an "arm" of Project De­ are working peacefully to sustain democrat­ nonexistent and I had not been especially mocracy is wrong and clearly at odds with ic possibilities and values. attracted to the photographs in history legislative history. The present controversy only heightens books of Kaiser Wilhelm II, Von Tirpitz, In early 1983, Congress was presented Hindenburg and Ludendorff and the others with two separate legislative proposals to the importance of such open support for in St. Petersburg, Vienna, Paris and London, foster democratic political and social institu­ our friends abroad. We must not allow total­ all of whom stumbled into World War I. tions abroad. The first was Project Democ­ ly unrelated activities alleged to have been

• 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. 4922 EXTENSIONS OF REMARKS March 5, 1987 I went to Berlin and by the time I left In the U.S. Army, shortly after the end of next to each other. It is a pity that I will three and a half years later, a few weeks World War II, one stood among the ruins of not be around. before Hitler came to power, everything was Alexanderplatz, Unter den Linden and Kur­ Berlin, for me, has been an adventure. happening. furstendamn, shaken by memories, and I Apart from the brutal Nazi years, I am Soon after arriving in Berlin, I bought a thought that the city would never be re­ grateful to it. The place, notwithstanding its first edition of Hitler's "Mein Kampf,'' writ­ built. It was. problems, has a future. There is hope in the ten around 1923-1924. Friends said, "Why Women began to stack the bricks and air. do you read that trash? He is mad and he stones and but he came to power, put the criminal poli­ under such leaders as Ernst Reuter, a new, PROBLEMS WITH THE U.S. EM­ cies he had outlined into effect, launched determined free West Berlin began to BASSY IN MOSCOW: LET THE World War II and helped to break the world emerge. BUYER BEWARE apart and Germany and Berlin in the doing. The Berliners had learned the lessons of During the first years of success, a majority Hitler and they resisted a new totalitarian­ of Germans applauded. I saw too many ism from the East. It was their stand during HON. WM. S. BROOMFIELD cheering in the streets while the Nazi ban­ the 1948-1949 blockade that softened feel­ OF MICHIGAN ners went by. ings in Western Europe and in the United IN THE HOUSE OF REPRESENTATIVES In the last years of the Weimar Republic, States about the Germans and led to the At­ before Hitler took over, Berlin was the lantic Alliance. Thursday, March 5, 1987 avant-garde city of the world. It was the West Berlin today is larger than one Mr. BROOMFIELD. Mr. Speaker, while Mr. time of the world depression, with millions thinks-25 miles <40.5 kilometers) across Gorbachev is telling the world that he is ready unemployed in New York, Paris, London, and long. Thirty-five percent of the city to deal with the United States on a medium­ Berlin, everywhere. In Berlin, sallow men comprises lakes, rivers and forest. It is not and women, without work and without sup­ New York, Paris, London or Rome, but range arms accord, I want to share with my port, stood disturbed, angry on the street there is something about the place, a spirit colleagues a classic story which illustrates the comers or in the courtyards of broken down or atmosphere that takes hold and doesn't downside of dealing with the Soviets. We all buildings, without hope, in despair. They let go. know about the serious difficulties which our provided the kindling for the Nazis and There is the point where two world sys­ Government has encountered in building the Communists, who fought each other, killed tems, divided by a brutal wall, built by the new U.S. Embassy in Moscow. Many of these each other. Communists, meet at Checkpoint Charlie. problems are directly attributable to the Soviet And yet there was another Berlin-to The wall, unfortunately, symbolizes the re­ contractor and the Soviet Government. which many of the creative artists, writers, alities of our world. Here is Germany's most poets, producers, actors, painters, academ­ international and stimulating city, with The American Embassy in Moscow project ics, and scientists from northern, southern, more than 120,000 Turks, men, women and has been plagued by lengthy construction eastern and western Europe were drawn. It children from everywhere, a mixture of delays and construction flaws. In addition the was slightly off balance, every new idea had people, culture, ideas, architecture, ways of project has experienced a cost overrun that its chance, every absurdity its day. It was vi­ life. may total $100 million as well as reported brant, energetic, dazzling. Today, the city is a high-tech center with technical security problems. Given all of these Of that Berlin, Carl Zuckmayer wrote, energetic young investors and entrepre­ obvious shortcomings of that project, there "You had to be in Berlin to smell the neurs, backed up by more than a hundred are serious concerns about the fate of that future." And a Berlin rabbi, who had the scientific and other institutes and 90,000 luck to emigrate from Hitler's Reich, later university students from all parts of Germa­ Embassy. wrote, "If one chose a city and a time where ny and the world. Some of the industrial I commend the Secretary of State for ad­ one wanted to live, it would be the Berlin of and scientific activity is in the tradition of dressing this problem in a practical and effec­ the 1920s." the early part of the century, when Sie­ tive way. He recently announced the appoint­ That was the Berlin I came to, an inno­ mens, AEG and others were showing inno­ ment of former Secretary of Defense James cent out of New Hampshire, by way of a vative leadership in electronics, automobiles R. Schlesinger to undertake a review of the two-day stand in New York. Within a few and other industries. Moscow project in order to determine if that weeks I heard the Berlin Philharmonic, In one of those institutes in the 1930s, building can be salvaged. I am confident that under Furtwa.ngler, and in concert halls and Otto Hahn carried out, as he put it, "a nice at the opera there were also Bruno Walter, little experiment" in which he split the nu­ Mr. Schlesinger will employ his many talents Otto Klemperer and Erich Kleiber. There cleus of the atom and the word raced to Lisa the options which our Government has re­ Marlene Dietrich and have been tormented Meitner, Niels Bohr, Einstein and finally garding the future of that building. ever since. I sat in the cafes next to artists, President Roosevelt, who launched the As an expression of my deep concerns bankers, philosophers, fanatics of the Right Manhattan Project. about this troublesome project, I recently in­ and the Left. I lived in the area that Liza The city remains slightly mad, open to ex­ troduced House Concurrent Resolution 3, Minnelli and "Cabaret" made famous years periments, some promising, some absurd. It which condemns the Soviet Union for the re­ later. Down below on the street comers is a hotbed of ideas where social, intellectu­ were strange ladies and even stranger men. I al and other universal problems are antici­ ported penetration of the American Embassy am glad to report they were resisted. pated, tried out, carried through or aban­ in Moscow and supports the President's posi­ The university was exciting. The intellec­ doned. Occasionally, the young like to dem­ tion of not allowing the Soviets to occupy their tual and social climate was intensive. Many onstrate in the streets, sometimes for causes chancery in Washington until all problems as­ of the students were more interested in poli­ that are not always convincing. The avant­ sociated with the Embassy are resolved. tics than in studies. There seemed to be a garde is comfortable here, anything goes When it comes to dealing with the Kremlin Nobel laureate in every other seminar. No and nobody seems to care. The situation is on getting a new Embassy, I continue to say wonder that Johnny van Neumann, Leo Szi­ balanced by the Berlin Philharmonic, opera, "Buyer beware!" lard, Edmund Teller, Raymond Aron and museums, theaters and Kneipen. One won­ others came out of Prague, Budapest, Paris ders sometimes if the Berliners ever eat at With these concerns in mind, I commend and everywhere else to study in Berlin. home. the following Washington Post article on this One night our forlorn foreign students The Berliner is cynical, flippant, tolerant, Embassy project to my colleagues in the club staged its "annual" dinner-we had sometimes abrasive but he can take and House: never held one before-in a seedy Berlin res­ make a joke and he can be neighborly. The CFrom , March 4, taurant. As a lark, we had invited Einstein. city has seen too much violence and break­ 1987] He never answered, but that night, while age in the past for the Berliner to be roman­ STATE DEPARTMENT, CONGRESS IN EMBASSY drinking beer, in walked the great man and tic. Row: Ex-DEFENSE SECRETARY TO JUDGE spent two hours with us. We were so over­ Next year, Berlin-the two Berlins-cele­ WHETHER NEW CHANCERY BUILDING IN come that none of us remembered what he brate the 750th anniversary of the city's Moscow CAN BE SAVED said. founding. Unfortunately, East Berlin will The Berlin girls, or some of them, turned not open up the Brandenburg Gate and my colleagues. States Embassy to be designed and con­ But construction terms remained to be ne­ CFrom the Washington Post, Mar. 4, 19871 structed by Soviets." gotiated in a process the State Department The Soviets experienced similar "security" report said "was like building a house of GESTURES AND THE HOMELESS problems here. During construction of hous­ cards during a windstorm. Several members of Congress, the mayor ing at the Soviet Embassy complex at "The haggling over conditions grew so ac­ and a few movie stars were scheduled to Mount Alto, "bugs" were found, one in a rimonious that both sides at times consid­ spend last night on a grate to demonstrate toilet partition, according to John C. War- ered giving up the negotiations," it said. their concern for the homeless. The gesture

91-059 0-89-16 (Pt. 4) 4924 EXTENSIONS OF REMARKS March 5, 1987 continues the strange glamorization of this colleagues to read this piece before urging a Congress, as it has done on El Salvador, is issue that no one fully understands yet so cutoff of aid to the . wise to raise the issue to limit these viola­ many want to use. The article follows: tions. The problem of the homeless has arrived 5. Aren't the Contras ineffective? Again, in our midst with what has to be called un­ [From the U.S. News & World Report, Feb. no. If the U.S. had 3,000 advisers in El Sal­ natural speed. Five years ago, if headlines 23, 1987] vador and the guerrilla forces doubled in are the measure, it hardly existed. Now it THE PRESIDENT'S PASSION size over 18 months, this would be seen as a pervades the society. To what extent has re­ Finding the guilty in the laundering of failure. Yet Cuba has 3,000 advisers in Nica­ ality changed, to what extent is this a genu­ the Iranian millions for the Contras preoc­ ragua, and the insurgency forces there have ine public discovery of wretchedness previ­ cupies Congress and the press. Colonel doubled over the last 18 months. In five ously ignored, to what extent is it a media North, General Secord and others reappear years, the Contras have built up an effective artifact? No one quite knows, and at a cer­ in the headlines. But one name is missing in force five times the size of the one the San­ tain level it does not matter. The people are all the furor-, President of dinistas built up over 15 years. Success for there, and plainly wretched. • • • Nicaragua. It is right to pursue our Ameri­ guerrilla armies cannot be measured by A bill is fine, and some of the funds for can scandal. But it will be tragic if the pri­ body counts or by territory held. The Sandi­ emergency measures are needed. But the mary issue is sidetracked. That primary nistas engaged in guerrilla operations for issue is more complex than this hasty solu­ issue is the outrageous subversion of the years before they ever held an inch of terri­ tion suggests. Who are the homeless? Why Nicaraguan revolution by the Sandinistas. It tory, and we do not make such demands for are they suddenly in evidence when they presents the U.S. with moral and strategic territorial gain on the Afghan resistance. were not before? What are their problems issues that will outlast the current furor The real questions: Are we committed to and what are the solutions? Are they mainly and the Reagan Presidency. our own hemisphere? Is it important? The deinstitutionalized mental patients? Or are President Reagan has been wrong about Contras are central to the stability and they victims of the weak economy of recent Iran, but he has been right in his personal future of this hemisphere, because it is years? commitment to the Nicaraguan Contras. He Nicaragua that is challenging that stability It isn't a tidy world, but no program can did not invent them. The Sandinistas did. and the Contras are the only effective coun­ be meaningful for long without a better There were no Contras until the Sandinistas terforce we have. To reverse our support sense than anyone seems to have of what its imposed a totalitarian state on the people's would advertise an unreliability that would purposes and dimensions are. The bill in hopes of freedom after the Somoza dictator­ undermine our friends and tempt our foes Congress would create an Interagency ship. What would happen if we didn't sup­ in the region and perhaps beyond. It would Office on Homelessness. Do the homeless port the Contras and their effect were mini­ cost us dearly. really need a separate agency to champion mized? The Sandinistas would then be free their cause within the government? Or do to do what they tried to do before they were they not need stronger support from agen­ Contras-namely to expand the revolution. WE MUST CONTINUE TO ASSIST cies along the way to becoming homeless, Even in 1979, when they were hanging on by NICARAGUANS better help in their lives before they end up their fingernails, the Sandinistas were sup­ on the grates and in the makeshift shelters? porting insurrections in Honduras, El Salva­ The limited amount the bill would provide dor and Guatemala. Today, they have an HON. DAVID DREIER cannot solve the problem of the homeless, Army 10 times the size of and more power­ OF CALIFORNIA whatever that is; it is a token amount. The fully armed than Somoza's. The Sandinistas IN THE HOUSE OF REPRESENTATIVES bill would give an additional $70 million to are very explicit about their revolution as the Federal Emergency Management Marxist and a "revolution without bound­ Thursday, March 5, 1987 Agency to distribute food; $100 million to aries." They say they want a Marxist para­ cities, states or other intercessors to ren­ dise in Nicaragua and in all countries Mr. DREIER of California. Mr. Speaker, last ovate buildings for use as shelters; $30 mil­ around Nicaragua. Nothing short of force night the President took a bold step toward lion for transitional housing; extra funds will contain the Sandinistas, and it is clearly putting the Iran arms issue behind us. Yes, for outpatient mental health care. Calling a better if that force were exerted by Nicara­ many questions remain but we must proceed halt to the emptying of mental hospitals guan fighters rather than American. and resolve those as expeditiously as possi­ until the necessary community mental Let's deal with the questions that are ble. A byproduct of the Iran-Contra issue is a health programs are in place is a better raised. proposal here in Congress to block assistance idea. The bill skips on the surface. 1. Why don't Nicaragua's neighbors feel to the Nicaraguan Freedom Fighters. Mr. The homeless, we say again, are wretched strongly about this? They do. But they are Speaker, I commend to my colleagues a brief people who need help. If the government influenced by our own vacillations. In pri­ can help them with some emergency funds, vate, these governments are much more but very important editorial by Mortimer B. it should. But there is a side to this stam­ hostile for they understand how vulnerable Zuckerman of U.S. News & World Report. It pede toward the TV cameras that does no their own countries are to Nicaraguan sub­ underscores the importance of ensuring that one credit and will not help the homeless. It version should the Contras collapse. we continue to assist the Nicaraguans fighting is much more help for the helpers, at best 2. Wouldn't the arms money be better for freedom so that we will never have to an impulse without clear content, aid of the spent eliminating the causes of Communism send United States military troops to the kind we should all have learned long ago to in our hemisphere? We know all too well region: distrust. how long and how difficult it is to rid injus­ tice and poverty from weak local economies. THE PRESIDENT'S PASSION Meanwhile, what is to be done about Sandi­ Finding the guilty in the laundering of SUPPORT OF THE CONTRAS nista military action and subversion? To the Iranian millions for the Contras preoc­ defend our southern flank would cost the cupies Congress and the press. Colonel U.S. vastly more than the $100 million in North, General Secord and others reappear HON. DONALD E. LUKENS Contra aid. in the headlines. But one name is missing in OF OHIO 3. Won't America be drawn into military all the furor-Daniel Ortega, President of action to rescue the rebels or rescue Hondu­ Nicaragua. It is right to pursue our Ameri­ IN THE HOUSE OF REPRESENTATIVES ras or rescue U.S. prestige? Reagan's oppo­ can scandal. But it will be tragic if the pri­ Thursday, March 5, 1987 nents raised the same argument and were mary issue is sidetracked. That primary wrong about the military-aid program for El issue is the outrageous subversion of the Mr. DONALD E. LUKENS. Mr. Speaker, Salvador. Had military aid not been given, Nicaraguan revolution by the Sandinistas. It rise today to share with my colleagues an edi­ the U.S. might well have had a major crisis presents the U.S. with moral and strategic torial from the February 23, 1987, issue of following a Communist takeover in El Salva­ issues that will outlast the current furor U.S. News & World Report. dor. and the Reagan Presidency. This editorial succinctly outlines the issues 4. Are not the Contras a collection of So­ President Reagan has been wrong about surrounding the situation in Nicaragua and mocistas? No. There are about as many ex­ Iran, but he has been right in his personal America's role in helping the Contras to end Sandinistas in the command and staff posi­ commitment to the Nicaraguan Contras. He tions as there are ex-Somocistas-both did not invent them. The Sandinistas did. the violent Communist totalitarian government about 25 percent. Of 14 Contra regional There were no Contras until the Sandinistas which has been imposed on the people of commanders, 3 are ex-Somocistas and 6 are imposed a totalitarian state on the people's Nicaragua by the Sandinistas. The editorial ef­ ex-Sandinistas. The three top leaders have hopes of freedom after the Somoza dictator­ fectively refutes the arguments of the oppo­ unambiguous anti-Somoza credentials. But ship. What would happen if we didn't sup­ nents of aid to the freedom fighters. I urge my Contra human-rights abuses have occurred. port the Contras and their effect were mini- March 5, 1987 EXTENSIONS OF REMARKS 4925 mtzed? The Sandintstas would then be free ADMINISTRATION MOUNTS AS­ since 1970, and has traditionally enjoyed to do what they tried to do before they were SAULT ON TITLE X FAMILY broad and bipartisan support. Congress has Contras-namely to expand the revolution. PLANNING/PLANNED PARENT­ re-examined the program several times Even in 1979, when they were hanging on by since then and reauthorized it without sig­ their fingernails, the Sandintstas were sup­ HOOD PROGRAMS nificant change. As recently as last fall, the porting insurrections in Honduras, El Salva­ Congressional conferees on the omnibus dor and Guatemala. Today, they have an HON. PETER H. KOSTMA YER continuing resolution wrote report language Army 10 times the size of and more power­ OF PENNSYLVANIA aimed at insuring that the program was un­ fully armed than Somoza's. The Sandintstas IN THE HOUSE OF REPRESENTATIVES changed in the absence of new legislation. are very explicit about their revolution as We are pleased that Secretary Bowen has Marxist and a "revolution without bound­ Thursday, March 5, 1987 taken steps to limit the damage done by the aries." They say they want a Marxist para­ Mr. KOSTMAYER. Mr. Speaker, in recent Gasper memo, which was quickly rescinded. dise in Nicaragua and in all countries weeks, the National Family Planning Pro­ We urge you to send a clear signal to the around Nicaragua. Nothing short of force gram-title X of the Public Health Service Secretary and his employees that the Title will contain the Sandinistas, and it is clearly Act-has come under severe attack by offi­ X program is to be managed in an even­ better if that force were exerted by Nicara­ handed way, free from political pressures guan fighters rather than American. cials in the Reagan administration and by and attacks by special interest groups and Let's deal with the questions that are those outside the administration opposed to their allies in your Administration. raised. family planning. Finally, we note that the Administration 1. Why don't Nicaragua's neighbors feel These attacks, in the form of executive has announced plans to submit legislation strongly about this? They do. But they are branch orders and newly proposed legislation, amending the Title X program. While we do influenced by our own vacillations. In pri­ represent a determined effort to destroy an ef­ not support the changes you are seeking, we vate, these governments are much more fective and widely supported nationwide com­ commend you for recognizing that only hostile for they understand how vulnerable munity-based health program. through Congressional action-not adminis­ their own countries are to Nicaraguan sub­ trative fiat-can changes of this type be version should the Contras collapse. In January, an official in the Department of Health and Human Services, Jo Ann Gasper, properly made. 2. Wouldn't the arms money be better Sincerely, spent eliminating the causes of Communism issued an order to deny all title X funding to Sam Gejdenson, Peter H. Kostmayer, in our hemisphere? We know all too well Planned Parenthood affiliates throughout the Henry A. Waxman, James H. Scheuer, how long and how difficult it is to rid injus­ Nation. Mrs. Gasper's order was immediately Jim Moody, Peter J. Visclosky, Kweisi tice and poverty from weak local economies. rescinded by her superiors at HHS, including Mfume, Stephen J. Solarz, Barney Meanwhile, what is to be done about Sandi­ Secretary Otis R. Bowen who subsequently Frank, Daniel K. Ak.aka, Thomas C. nista military action and subversion? To issued a memorandum stating the administra­ Carper, Mel Levine, Major R. Owens, defend our southern flank would cost the tion's intention to advance its policies-cripple Martin Olav Sabo, Nick Joe Rahall II, U.S. vastly more than the $100 million in Matthew G. Martinez, Thomas C. Contra aid. domestic family planning through legislative means-the only way such policies can legally Sawyer, Edolphus Towns, Robert J. 3. Won't America be drawn into military Mrazek, Patricia Schroeder, Cardiss action to rescue the rebels or rescue Hondu­ be put into effect. Collins, , Jr., Mickey ras or rescue U.S. prestige? Reagan's oppo­ Mrs. Gasper's rescinded order singled out Leland, Mike Lowry, Louise M. nents raised the same argument and were Planned Parenthood for attack despite that or­ Slaughter, Rick Boucher, Anthony C. wrong about the military-aid program for El ganization's scrupulous adherence to the law Beilenson, Steny H. Hoyer, Howard Salvador. Had military aid not been given, stipulating no Federal funding for abortions. Wolpe, George Miller, John Lewis, the U.S. might well have had a major crisis She and her allies in and out of the adminis­ William H. Gray III, Bruce A. Morri­ following a Communist takeover in El Salva­ tration want to go far beyond the scope of son, Ted Weiss, Gerry E. Studds, dor. Albert G. Bustamante, Norman Y. 4. Are not the Contras a collection of So­ current law and decide what organizations ought to receive Federal funding on the basis Mineta, William J. Hughes, Howard L. mocistas? No. There are about as many ex­ Berman, Vic Fazio, Charles B. Rangel, Sandintstas in the command and staff posi­ of what those organizations do with non-Fed­ Robert G. Torricelli, Constance A. tions as there are ex-Somocistas-both eral funds. The effect of the Gasper directive Morella, Sander M. Levin, C. Thomas about 25 percent. Of 14 Contra regional and the newly proposed antifamily planning McMillen, Lane Evans, Dave McCurdy, commanders, 3 are ex-Somocistas and 6 are legislation, if enacted, would be to deny in­ Gary L. Ackerman, Les AuCoin, ex-Sandintstas. The three top leaders have creasingly scarce Federal health funding to Charles A. Hayes, Don Edwards, unambiguous anti-Somoza credentials. But State and local governments, hospitals, HMO Robert T. Matsui, Jim Bates, Barbara Contra human-rights abuses have occurred. Boxer, Ronald V. Dellums, Richard H. Congress, as it has done on El Salvador, is programs, and other health-service providers in almost every congressional district in the Lehman, Edward F. Feighan, Augustus wise to raise the issue to limit these viola­ F. Hawkins, George W. Crockett, Jr., tions. country. Leon H. Panetta, Bill Frenzel, Marcy 5. Aren't the Contras ineffective? Again, Last week, 82 of my colleagues joined me Kaptur, Robert Garcia, Edward R. no. If the U.S. had 3,000 advisers in El Sal­ in sending the following letter to the President Roybal, Charles E. Schumer, Benja­ vador and the guerrilla forces doubled in expressing our concern about these illegal at­ min L. Cardin, James J. Florio, Tom size over 18 months, this would be seen as a tacks by the administration on our domestic La.ntos, Fortney H. Stark, Julian C. failure. Yet Cuba has 3,000 advisers in Nica­ family planning program. I also commend to Dixon, Douglas H. Bosco, Lawrence J. ragua, and the insurgency forces there have my colleagues an editorial from the February Smith, George E. Brown, Jr., Mervyn doubled over the last 18 months. In five 16 Washington Post concerning this important M. Dymally, Esteban E. Torres, Sher­ years, the Contras have built up an effective wood L. Boehlert, Olympia J. Snowe, force five times the size of the one the San­ matter. Tony Coelho, Glenn M. Anderson, Les dinistas built up over 15 years. Success for HOUSE OF REPRESENTATIVES, Aspin, Morris K. Udall, Claudine guerrilla armies cannot be measured by Washington, DC, February 24, 1987. Schneider, and Stephen L. Neal. body counts or by territory held. The Sandi­ Hon. RONALD w. REAGAN, nistas engaged in guerrilla operations for President of the United States, the White years before they ever held an inch of terri­ House, Washington, DC. HARASSING PLANNED PARENTHOOD tory, and we do not make such demands for DEAR MR. PRESIDENT: We are deeply dis­ Family planning advocates are confused. territorial gain on the Afghan resistance. turbed by recent attacks on the Title X Until last month the law seemed clear The real questions: Are we committed to family planning program by individuals in enough. The federal government, under the our own hemisphere? Is it important? The your Administration, including the person authority of the 1970 Family Planning Act, Contras are central to the stability and charged with administering the program, provides supporting grants to birth-control future of this hemisphere, because it is the Deputy Assistant Secretary for Popula­ clinics across the country. None of this Nicaragua that is challenging that stability tion Affairs at the Department of Health money can be used to perform or even advo­ and the Contras are the only effective coun­ and Human Services, Jo Ann Gasper. cate abortions, and the recipient clinics terforce we have. To reverse our support The recent memorandum by Ms. Gasper have been careful not to do either. Some, would advertise an unreliability that would to regional administrators attacking though, do provide abortion services with undermine our friends and tempt our foes Planned Parenthood is an unfair and irre­ their own money and at locations separate in the region and perhaps beyond. It would sponsible action for which there is no basis from the federally funded clinics. As recent­ cost us dearly. in law. The Title X program has been law ly as three months ago, the Supreme Court 4926 EXTENSIONS OF REMARKS March 5, 1987 upheld this kind of arrangement and specif­ agreements despite grave misgivings about and threatens to endanger the well-being of ically declared that any government restric­ the inevitable negative public response to the Oregonians I represent. tions imposed on an agency's use of its own money for a constitutionally protected pur­ such plans. At that time, no specific exercise FEMA is attempting to blackmail States who pose would be unconstitutional. and no specific attack scenario was outlined don't comply with its own peculiar view of Last month, on the anniversary of the Su­ to the States. what is and is not practical to plan for in terms preme Court decision in Roe v. Wade, FEMA recently announced plans to conduct of civil defense. In Oregon, our citizens are Deputy Assistant Secretary of Health and a nuclear war planning exercise this month in concerned about the hazards of toxic and nu­ Human Services Jo Ann Gasper, who is per­ the Pacific Northwest involving a nuclear clear waste transportation, the possibility of a sonally opposed to abortion, sent a notice to attack of 48 multikiloton bombs. The pattern Chernobyl-type accident at the disabled Han­ department field offices directing that all of the bombs, the numbers involved, their ford N-reactor, future eruptions of Mount St. grants to Planned Parenthood be cut off on the grounds that the organization favors yield, is such that if such a situation were ever Helens, and other accidents. abortion. Planned Parenthood is the largest to actually occur, the States of Oregon and States that choose not to participate in private recipient of federal family planning Washington as we now know them would futile exercises should not be penalized for funds. It receives about $30 million of the cease to exist. preferring to spend limited moneys on activi­ $142.5 million appropriated, with the rest Following announcements of these plans by ties that better prepare them to respond to going primarily to state and local health FEMA and the bizarre 120-day scenario which the type of disasters which are likely to occur, agencies and hospitals. The organization leads up to the nuclear attack, citizens all and which are survivable. also runs 47 abortion clinics but is careful to I hope my colleagues will join with me in the keep these separate from the birth-control over Oregon protested the absurdity of the facilities receiving federal funds. FEMA developed scenario and the proposition days to come to take steps to assure that no Because the law so clearly sanctions the that nuclear war in any event is survivable. State is penalized for exercising its right to arrangements Planned Parenthood has The , Neil Goldschmidt, protect its citizens in the way it determines is made, the Gasper directive was immediately and the Governor of Washington, Booth Gard­ best. rescinded by her superiors in Washington, ner, have notified FEMA that based on public and that seemed to be the end of the confu­ concern they will not participate in the plan­ sion. For a while. Last week, HHS Secretary TURN OFF THE SOVIET Otis Bowen issued a new order asking his re­ ning exercises. DISINFORMATION MACHINE gional directors to review all grants in order Governor Goldschmidt has told William H. to ensure that "no family planning program Mayer, Regional Director of FEMA's Region X of which abortion or abortion-related activi­ office, that "the concept of planning for a sur­ HON. WM. S. BROOMFIELD ties is a part can be eligible" for federal vivable nuclear war is one which many Orego­ OF MICHIGAN funds. This directive has been interpreted nians find unacceptable, and a number of IN THE HOUSE OF REPRESENTATIVES by different interest groups as either a Oregon counties have already declined to par­ Thursday, March 5, 1987 White House inspired threat to cut off ticipate." Governor Goldschmidt also objected Planned Parenthood or a tough-sounding Mr. BROOMFIELD. Mr. Speaker, I was to the fact that the nuclear attack scenario but legally meaningless sop to the anti-abor­ shocked to learn that a recent Soviet film sug­ was developed by FEMA without any partici­ tion lobby. gests that the United States was behind the pation by, or consultation with, officials of the Why all this rhetoric over a matter that assassination of Olof Palme, the former Swed­ has been settled in the law? Everyone in State. ish Prime Minister. Mr. Gorbachev must turn this business knows that the Gasper order I just have to echo our Governor's concern could not have stood up in court. Similarly, off his propaganda machine if he truly wants and I want to state clearly for the record that I to improve relations with the United States. everyone understands that both Congress believe Governor Goldschmidt and other State and the administration are firm in prohibit­ The film, entitled "Who Killed Olof Palme?", ing the use of federal money for abortions. officials have bent over backward to try to hints that the CIA was behind the still un­ The existing arrangements that restrict the reach an accommodation with FEMA that solved assassination of the late Prime Minis­ use of public money but not the privately would have prevented this confrontation. ter. That is patently ridiculous. The production funded activities of the family-planning I view it as extremely unfortunate that things is clearly designed to confuse the Swedish clinics represents a sensible compromise. have come to this impasse. I'd really hoped The secretary should advise all concerned people by suggesting that the United States that some of the very reasonable proposals may have been involved in that tragic murder. that he has no intention to go beyond the put forward by Oregon in terms of alternative law or to support a campaign of harassment Soviet disinformation has been used for against Planned Parenthood. scenarios would have been accepted by years. The Soviets should close their bag of FEMA, especially since they were put forward dirty tricks. Mr. Gorbachev boasts that this is in such good faith. Oregon fully understands the so-called age of "glasnost," or openness, STOP FEMA BLACKMAIL the need for emergency preparedness and re­ but Soviet conduct shows otherwise. I say to sponse systems, and they're willing to do any­ Mr. Gorbachev, let's be serious and get down HON. LES AuCOIN thing short of planning to survive a nuclear to the hard task of really improving relations OF OREGON attack of this magnitude. between our countries. IN THE HOUSE OF REPRESENTATIVES But the State I represent is not prepared to buy into the myth that such a war is surviv­ Thursday, March 5, 1987 able. Oregon offered to plan and participate in INDIAN IMMIGRANTS PROVE Mr. AuCOIN. Mr. Speaker, today I am intro­ a variety of attack scenarios, including terrorist UNITED STATES IS LAND OF ducing a bill, along with my colleague Mr. DE­ attacks carried out with conventional weapons OPPORTUNITY FAZIO, to prevent the Federal Emergency or nuclear devices; nuclear fallout resulting Management Administration [FEMA] from from accidents or sabotage at our nuclear fa­ HON. STEPHEN J. SOLARZ holding back emergency planning moneys cilities, and a number of other alternatives. All OF NEW YORK from States that refuse to participate in mas­ were turned down by FEMA. And all would IN THE HOUSE OF REPRESENTATIVES sive nuclear war survival planning exercises. have, I believe, met the needs of FEMA and Senator of Washington State of our citizens, in making sure that necessary Thursday, March 5, 1987 has already introduced this legislation in the planning for a whole host of possible disasters Mr. SOLARZ. Mr. Speaker, a recent article Senate. does take place. in highlighted the ex­ This bill is necessary because of a situation Nothing is accomplished by having this con­ traordinary contributions made to our country that began developing last spring when FEMA frontation. FEMA's goal, my goal, the State of by the more than 500,000 Americans who regional directors threatened to withhold es­ Oregon's goal, should all be the same. To do have come to our shores from the Indian sub­ sential emergency disaster planning moneys all we can to save the lives of citizens in the continent. from States unless they agreed to participate event of a disaster. Withholding funds from These new Americans from India have in a national security exercise. States that seriously try to comply with helped to enrich both the commerce and cul­ Many States, including Oregon, faced with a FEMA's requests because of rigid adherence ture of our great Nation. Indian immigrants loss they could not compensate for, signed to one particular set of plans is nonproductive have expanded scientific research in our Na- March 5, 1987 EXTENSIONS OF REMARKS 4927 tion's laboratories and universities, while wid­ biggest peach farmer in America; Sankar hobbles economic initiative with red tape ening the range of fashion, cuisine, music and Chatterjee, the paleontologist who discov­ and makes political issues of the tiniest deci­ art which all of our citizens can enjoy. America ered the fossil bones that may prove that di­ sions. But anyone who survives, let alone nosaurs evolved into birds; Raj Reddy, the succeeds, in such an environment is likely to has benefited greatly from the immigration to president-elect of the American Association acquire talents to put the average American our land of these talented and determined for Artificial Intelligence; and Subrahman­ tax-shelter promoter to shame. men and women who have come from the yan Chandrasekhar, the astrophysicist who Few other Asian immigrants come from world's largest democracy; namely, India. discovered what would become known as nations with such social and cultural diver­ These new Americans have been attracted by black holes and white dwarfs in a universe sity as India, with 33 major languages and our proud traditions of freedom and enterprise of dying stars. some 1,500 minor ones, seven major reli­ and by the opportunities available here, as in If you have surgery, chances are one in 10 gions and new ones propounded by every no other place on Earth. that your anesthesiologist is from India. sidewalk guru, and a melange of six major Many of the 28,000 Indian-trained physi­ As the Representative of one of the great ethnic groups. "There is nothing homogene­ cians in the U.S. went into this specialty ous about Indians," says K.G. Jan Pillai, a ethnic mosaics of the United States, , when anesthesiologists were in short supply Yale Law School graduate. "Tolerance and NY, I am proud to be able to count so many here. Indian doctors are also filling other adaptability are rooted in our culture. We of these accomplished Americans of Indian medical jobs, manning the U.S.'s inner-city are not pigeonholed." Thus in the U.S., he extraction among my friends and constituents. hospitals, psychiatric wards and rural clin­ observes of Indians, "we're scattered all Because of the important contributions which ics. Others, who can't get medical jobs right over; we don't have Indiatowns." Indians are making to our land, I submit this away, are selling shoes, clerking and doing hospital laboratory work while they wait for RECOGNITION AS MINORITY article to be printed in today's CONGRESSION­ hard-to-get internships and residencies. Mr. Pillai, who oversees analysis for the AL RECORD. If you have a toxic dump to clean up, Federal Energy Regulatory Commission, is INDIANS IN U.S. PROSPER IN 'THEIR NEW there is is a good chance that an Indian en­ the highest-ranking Indian in the govern­ COUNTRY, AND NOT JUST IN MOTELS gineer's company will do it. Not many U.S. ment. He was the founding chairman in firms want such dirty work. At universities, 1980 of the National Association of Ameri­ tenured professors prefer young Indian cans of Asian Indian Descent, formed to en­ To understand why every other motel in hance Indian visibility and political influ­ America now seems to be owned by some­ graduate students as research assistants. They work hard without complaining, ence. In 1982, the group got the Small Busi­ body named Patel, it helps to know some­ ness Administration to recognize Indians as thing about Benjamin Disraeli and a girl knowing that this ticket to eventual U.S. residence can be punched or canceled at a minority group, eligible for the prefer­ nicknamed Drina. ences given black, Hispanic and other mi­ She grew up to become Queen Victoria. professorial whim. RHYTHM AND ALGORITHM nority businesses in competing for govern­ He was a politician who kept extending his ment work. term of endearment by doing things she Among other diverse success stories are It came too late to help immigrants like liked, such as wheedling out of Parliament those of Zubin Mehta, the director of the Jaydev R. Patel, who arrived at New York's in 1876 a new imperial title for her: Empress New York Philharmonic Orchestra; Sant Port Authority bus terminal one day in 1969 of India. This meant she couldn't help but Singh Chatwal, a restaurateur and hotel with little more than a master's degree in invite Indian colonial troops to England for keeper; Narendra Karmarkar, the Bell Lab­ organic chemistry and a U.S. residence royal celebrations, like the Diamond Jubilee oratories wizard whose algorithm for linear permit, or green card. in 1897 marking her 60th year on the programming is making computers speedier; Mr. Patel had gone to New York from the throne. Sirjan Lal Tandon, the founder of Silicon small farming town of Sojitra in the west­ Some went. Some returned home by way Valley's Tandon Corp.; Amar G. Bose, who coast Indian state of Gujarat, north of of Canada, which left such a deep impres­ reinvented stereo speakers; and Ostaro, a Bombay, by way of Kenya and Canada. The sion that many of them returned and swami, astrologer and market forecaster name Patel, from a landowning clan that became farmers and foresters along the Ca­ whose uncanny World Series predictions evolved into a merchant class, is common in nadian and U.S. west coasts. were marred only when the sixth game Gujarat. later is a more complicated saga involving All immigrant groups, of course, have Under British rule, Mr. Patel's grandfa­ both the U.S. Congress and former Ugandan their success stories. Asians now seem par­ ther, father and uncle were among Gujara­ dictator Idi Amin. In any case, one study es­ ticularly zealous in pursuit of the American tis encouraged by the British to man planta­ timated that by last year, 28% of the 53,629 dream. The Indians-despite discrimina­ tions in East Africa, where they took up motels and hotels

home state of Wisconsin. Last year, we NATIONAL TAXPAYERS UNION SUPPORTS BILL "We are here today to endorse the legisla­ spent more than 25 billion dollars in direct TO REDUCE IRRATIONAL IRRIGATION SUBSIDIES tion introduced by Rep. Gejdenson and co­ farm subsidies. Let's make sure we aren't I am Jill Lancelot, Director of Congres­ sponsored by Reps. Kildee, Sharp and spending more of the taxpayers' money to sional Affairs for the National Taxpayers others to bring about an end to the absurd add to the surplus with irrigated lands. I Union. The National Taxpayers Union is a situation with respect to surplus crops and hope that the majority of our colleagues 150,000 member non-partisan, non-profit the Department of Interior's Bureau of Rec­ supports this rational approach to crop sur­ public interest organization that fights to lamation" Carlson said. pluses. reduce the enormous federal deficit, waste­ In February of 1984, as a result of lan­ ful government spending and the two tril­ guage inserted in Section 222 of the Recla­ mation Reform Act of 1982, the Department STATEMENT OF JAY D. HAIR, EXECUTIVE VICE lion dollar national debt. I am here this morning to give our whole­ of Agriculture released a report, Production PRESIDENT, NATIONAL WILDLIFE FEDERATION of Surplus Crops on Irrigated Land Served In the decade ahead, the management of hearted support to the Irrigation Subsidy Reform Act of 1987 introduced by Repre­ by the U.S. Bureau of Reclamation, which America's water resources will become more once again brought the problem to the at­ important than ever. It is essential that we sentatives Gejdenson. Sharp and Kildee today. We believe that it is imperative to tention of Congress. There is an apparent as a nation reexamine our current water de­ inconsistency in some Federal programs re­ velopment policy, much of which dates from stop subsidies to farmers for irrational water irrigation projects. These projects are stricting production and raising prices and the early 1900's. The proposed "Irrigation farm income, others, are designed to in­ Subsidy Reform Act" is an important step senseless because they bring marginal land into production to grow crops already in crease the productive capacity of the agri­ toward improved water management, and I surplus. the very crops that the government cultural resource base. "Such inconsisten­ commend the sponsors of this measure for is simultaneously paying not to be grown. cies put these two agencies at loggerheads" their interest and effort on this important Under current practices it is clear that the Carlson continued. bill. government's left hand does not know what In the report, the Economic Research The policies and projects of the Bureau of the right hand is doing. Presently, it asks Service stated "full-cost pricing or limits on Reclamation, operating under the Reclama­ the taxpayers to pay farmers NOT to plant use of water would be more effective than tion Act of 1902, are fraught with contradic­ certain crops that are in surplus. At the mandatory participation in resolving pro­ tions with the economic and environmental same time, taxpayers are asked to provide gram inconsistencies". realities of today. The Bureau's policies: irrigation water to farmers at below market "We feel that Congress needs to bite the Promote consumption of water at a time value to grow the very same excess crops. bullet on this issue with respect to the Rec­ when the value of conservation for preserv­ And, in many cases it is the same recipient lamation program and take the first step in ing free flowing streams is widely recog­ who receives both subsidies. A situation that bringing an end to the problem" Carlson nized; borders on the absurd. added. Promote production of agricultural com­ The government's own statistics indicate In 1985, the Environmental Policy Insti­ modities when farmers nationwide are that forty-five percent of the lands irrigated tute published a report What Agribusiness facing chronic surpluses and soft prices; with federally subsidized water are being Thinks . . . A Survey of Business Leaders' Require lavish Federal spending for con­ used to grow crops that the government is Views on Land, Soil & Federal Farm Policy. struction and maintenance of costly dams paying farmers not to grow. A reality that The report was based on a questionnaire and canals, while Federal budgetary pres­ challenges common sense. survey over the 1983-1984 period where the sures reduce funds available for a variety of In fact. the current farm subsidy system views of business officials from more than important domestic needs. hits the taxpayer not only with a double, 230 corporations and agribusiness trade or­ Bureau of Reclamation projects divert but a triple whammy: ganizations directly or indirectly involved in and deliver a staggering amount of water­ 1. tax dollars subsidize water to turn agriculture were solicited. One of the ques­ between 25 and 30 million acre-feet-for irri­ desert land into unneeded farm acreage tions asked in the survey was: Should the gation each year. Even small gains in con­ used to grow unneeded crops; federal government provide millions of dol­ servation and efficiency could yield substan­ 2. tax dollars pay farmers not to grow sur­ lars in subsidies for federal irrigation tial water savings. Yet the highly subsidized pluses that are produced with subsidized projects used to produce crops in some re­ price of this water actually undercuts con­ water; and gions (outside the Midwest) which put farm­ servation efforts. 3. tax dollars help pay for storage costs ers of those same crops in the Midwest at a In operation, Bureau of Reclamation irri­ when surplus crops are grown. competitive disadvantage? gation projects often damage or destroy the The American taxpayers can't help but be Of those responding, 64.3 percent said no, fragile habitat for fish and wildlife provided astonished, confounded and finally outraged 24.3 percent had no opinion and only 11.4 by the rivers and streams of the arid West. about this nonsensical system of self-defeat­ percent said yes. Furthermore, excessive application of irriga­ ing subsidies. It is utterly incomprehensive "We feel there is broad support for such tion water has been found to leach minerals to ask taxpayers to pay for subsidy piled on action and we look forward to working with and salts from the soil, and can render valu­ subsidy on top of subsidy at a time when these Members of Congress and others in an able land useless for agriculture or poison­ Congress is faced with short-falls in the effort to bring about a solution to this prob­ ous to wildlife. These damages do not disap­ $180 billion range. lem" Carlson concluded. pear. Mitigation and clean-up are rarely The legislation introduced today is a giant cheap or easy. first step toward restoring a bit of sanity to The "Irrigation Subsidy Reform Act" is the nation's runaway farm subsidy craze. THIRD WORLD DEBT an important step towards reconciling the This bill, by requiring farmers to pay full LEGISLATION conflicting goals of production expansion. cost for irrigation water will help kill three promoted by Reclamation water subsidies, birds with one stone. It will curtail the HON. BRUCE A. MORRISON and agricultural income stabilization, pro­ water subsidies, it will reduce payments for vided by various USDA crop programs. The surplus crops and it will lower storage costs. OF CONNECTICUT bill will also have two important water man­ The National Taxpayers Union joins with IN THE HOUSE OF REPRESENTATIVES agement effects, with environmental bene­ Representatives Gejdenson, Kildee and fits attendant to both: Sharp in urging the Congress to adopt this Thursday, March 5, 1987 To the extent that recipients of Reclama­ significant tax-saving legislation. Mr. MORRISON of Connecticut. Mr. Speak­ tion water continue to produce surplus crops, the subsidized price of water will in­ er, I am today introducing legislation on one of crease. This will encourage investment in STATEMENT OF THE ENVIRONMENTAL POLICY the most important yet poorly understood water conservation. and free up new sup­ INSTITUTE issues we confront today: Third World debt plies of water for other uses or for maintain­ Peter Carlson, Director of Water Re­ and its impact on the United States. ing in-stream environmental values; sources, for the Environmental Policy Insti­ The basic facts about Third World debt are The application of this full cost pricing tute, a Washington, D.C. based public inter­ widely known. Poor nations have borrowed far formula will reduce the political pressure est organization specializing in water, more than they can now pay back. The total for new Federal irrigation projects, avoiding energy and agricultural resource issues, indebtedness of these nations can be calcu­ the environmental damages that would today called upon the U.S. Congress to result from the construction and operation adopt reforms to end the contradictions be­ lated in various ways, but the best figures sug­ of new irrigation works. tween the Department of Interior's Bureau gest that debt now exceeds one trillion dol­ We welcome the introduction of the bill, of Reclamation and the Department of Ag­ lars. Even more startling, that debt has grown, and commend it to the early attention of riculture practices with respect to surplus not shrunk, since the onset of the chronic the Congress and the Administration. crops. debt "crisis" that began in late 1981. And it 4930 EXTENSIONS OF REMARKS March 5, 1987 has grown precipitously; from 1981 to the deal exclusively with this debt problem. This The debt deconcentration facility would pro­ present, the debt has grown from some $730 new entity would be a debt deconcentration vide the expertise, the impetus, and the legal billion on over a trillion dollars-all in a period facility. power to see that these creative new ap­ when we were supposedly mindful of this The urgent need for a new institution to proaches to funding economic development crisis situation and taking various actions to deal on a comprehensive basis with debt is and reducing the debt burdens of the Third deal with it. now clear. Despite repeated assertions by pri­ World are effectively utilized. Increasingly, our people are beginning to vate bankers and the Reagan administration The need for this new approach to Third know and understand the tangible, down­ that the problem has been solved or that sig­ World debt is evident and urgent. And the home consequences of this seemingly remote nificant progress is being made on a muddle­ Congress has an exceptional opportunity to problem. Stated simply, the debt problems of through, case-by-case basis, the facts belie act boldly now to face the debt problem. We these countries have translated into the such "whistling past the graveyard." can, and I believe we will, pass this legislation severe trade problems we face in virtually The facts remain that these countries are on debt as part of the omnibus trade bill that every locality in America. being strangled economically, our own trade we intend to pass this spring, just a few short Why? Because in trying to pay their debts to picture is growing more bleak, and our bank­ weeks from now. Already, the chairman of the the commercial banks, including the major ing system is more and more at risk. A new International Development Institutions Sub­ U.S. banks, these countries have pursued entity with full multilateral backing and a clear committee on which I sit, Representative trade policies that have devastated American mandate would be able to provide the leader­ WALTER FAUNTROY, has held hearings on the farms and factories. These debtor nations, in ship on this issue, which we have not received debt problem and has clearly stated his inten­ an effort to be upstanding, debt-paying mem­ from either the administration or the private tion to mark up legislation on debt within the bers of the international financial community, banking sector to date. Banking Committee section of the trade bill. I have pursued economic policies that empha­ The debt deconcentration facility we are welcome that commitment and I join with him sized buying less of the food and machinery proposing would be empowered to take the and my other colleagues in our determination we produce while selling us as much as they sovereign debt off the books of the commer­ to act swiftly on this crucial problem. possible can from their own farms and facto­ cial banks. The banks would be required to Today's introduction of the Debt Deconcen­ ries. accept the losses on these loans that would tration and Growth Promotion Act of 1987 is The stark result has been that the shift in be dictated by the free market; that is, they an important first step in providing an answer the trade balance between the United States would only receive for these loans what they to this extremely serious economic challenge and the developing world has become a major are currently being booked by the banks. In to the well-being of our farmers, our workers, factor in our intolerably large trade deficit. De­ order to make those losses manageable, how­ our banks, and to the millions of people still spite the general focus on our trade with ever, the banks would be allowed to recognize struggling to achieve the prosperity in their na­ Japan, the fact is that this debt-related shift in these losses on a deferred basis, stretched tions that has blessed us here in the United our trade with poor nations is a greater factor over a period of years. That would insure that States. in our trade deficit problem than our trade with the banks accept a fair loss on this lending, Following is a section-by-section summary Japan. some of which was improvident in the first of the Debt Deconcentration and Growth Pro­ For that reason, I am introducing this legis­ place, but that any losses would not threaten motion Act of 1987. lation today with the absolute determination to the soundness of individual banks or the see that the problem of Third World debt is safety of our overall banking system. SUMMARY-THIRD WORLD DEBT BILL dealt with effectviely in the omnibus trade bill, Further, this facility would be empowered to 1. Title.-"Debt Deconcentration and Growth Promotion Act of 1987." which Speaker WRIGHT has wisely decided to work directly with the debtor countries, much 2. Findings and Purposes.-Developing place on a fast track for passage this April, as the bankruptcy court might work with a country debt now exceeds one trillion dol­ just 2 months from now. troubled company, to restructure their debt. lars, and developing nations are no longer Before discussing the details of our propos­ The aim should be to find creative new means able to sustain interest payments on that al, I want to say a special word of thanks to of tapping the world financial market to pro­ debt, let alone repay the principal of those my colleague from Michigan, Representative vide these countries with the funds they need obligations. The debt crisis has three dan­ SANDER LEVIN. He now serves on the Ways at a current price they can afford. At the same gerous consequences: and Means Committee, but he also served on time, in conjunction with this restructuring, the Efforts to repay debt have crippled eco­ nomic development in these nations; the Banking Committee in the last Congress facility would obtain commitments from the Their inability to repay these debts poses and deserves special credit for the work he debtor developing nations that economic re­ a serious threat to the safety and soundness did last year in moving forward with a number forms will be implemented that will promote of the U.S. commercial banking system, of us on the Banking Committee to develop long-term, sustainable growth and limit capital since major money center banks are overex­ new and innovative approaches to this critical flight; such commitments will be a condition of posed and could be bankrupted by wide­ economic problem. the debt restructuring and reduction assist­ spread default or repudiation of this sover­ That collective effort has produced the leg­ ance offered by the debt deconcentration fa­ eign debt; islation being introduced today, and our con­ cility. Their inability to repay their debt has se­ riously damaged the U.S. trade balance. tinued cooperative work will be the key to pro­ Here again, what is needed is leadership; Latin American efforts to limit imports ducing final legislation on debt that will be there is no dearth of creative ideas about how from and expand exports to the U.S. have wise, fair, and effective. this could be done. caused a greater negative shift in our bal­ Let me explain the gist of the bill that Rep­ For example, this morning's paper carriers ance of trade with those nations than we resentative LEVIN joins me in introducing the news that Venezuela has just agreed to have experienced with Japan. today. engage in some so-called debt-equity swaps Therefore, the purposes of this bill are to: The Debt Deconcentration and Growth Pro­ to reduce its debt burden. This involves per­ Promote growth in the developing world motion Act of 1987 has two key purposes: To mitting a creditor to exchange a loan asset for and expand trade between the United States and the developing world by restruct­ reduce the dangerous level of exposure of an equity holding in a company or of an asset ing and reducing Third World debt burdens; U.S. banks to troubled foreign lending, and to such as oil reserves. Another widely dis­ and promote genuine economic growth and devel­ cussed idea that is beginning to be used in­ Protect the safety and soundness of the opment in the poor nations of the world along volves changing this short-term, comparatively U.S. banking system by reducing commer­ with increased trade between the developing high-interest debt into other forms, such as cial bank exposure and deconcentrating the world and the United States. securities, and marketing them to the interna­ holdings of developing nation debt by tap­ To accomplish those objectives, the bill in­ tional capital markets. One of the reasons we ping the world capital markets through in­ structs the administration, specifically the Sec­ are facing this problem is that the Third World novative financing techniques. 3. Debt Deconcentration Facility.-The retary of the Treasury, to immediately initiate countries have been excessively reliant on Secretary of the Treasury is instructed to negotiations with our industrial trading part­ commercial banks. Their debt is unnecessarily initiate negotiations with other industrial­ ners-who also have lent money to these concentrated in the banks' hands; and they ized nations to propose the establishment of countries and share these same problems have not utilized the other capital sources that a multilaterial financial intermediary which with us-to create a new multilateral entity to exist in the global financial markets. would purchase sovereign debt from private March 5, 1987 EXTENSIONS OF REMARKS 4931 creditors and enter into direct negotiations VICKI FRANKOVICH AND THE York Times article was published. It was a with debtor countries for the purpose of re­ TWA FLIGHT ATTENDANTS Sunday afternoon in June; she was spending structuring the debts to reduce these coun­ the day as she had spent virtually every day tries' current debt servicing burdens. since the strike began-in her office. A bou­ The facility, to be an independent affiliate HON. BARBARA BOXER quet of wilting roses on her desk was a re­ of the World Bank, would not retain or hold OF CALIFORNIA minder of how she'd spent her thirty-eighth the debt acquired from private creditors. It IN THE HOUSE OF REPRESENTATIVES birthday. She and her staff had worked on would operate as a financial intermediary or Thursday, March 5, 1987 the boycott of conscience launched in con­ agent to restructure the debt portfolio of nection with the approaching July 4 festivi­ the debtor nation and to repackage and sell Mrs. BOXER. Mr. Speaker, 1 year ago to­ ties. Its theme was an "affirmation of the new debt instruments to new investors in morrow, TWA flight attendants took a position American spirit." of conscience when they left their jobs to pro­ "Our approach now is to emphasize out­ the world capital markets. In so doing, it reach to the community. In the same way would be empowered to utilize such tech­ test unfair actions by the new management of their company. Their story is told in a January groups across the country are boycotting niques as debt buybacks, debt-equity swaps, South Africa, we're trying to say to people and securitization and collateralization of 1987 MS. magazine article on Vicki Franko­ it's no less American to boycott a carrier, an debt instruments of the debtor nation. vich, president of the International Federation employer, whose practices are obviously The facility would acquire the debt initial­ of Flight Attendants. Through personal sacri­ geared to a human rights violation-a sex ly through issuing obligations which would fice and under extremely trying circumstances, discrimination so appalling that we had no be backed by a contingent liability of the Ms. Frankovich has maintained her commit­ choice." signatory nations agreeing to creation of ment to the TWA flight attendants. I find it un­ • • • • • the facility, but those obligations would be conscionable that such great levels of pay, The dispute between TWA and its flight covered by the funds acquired by the facili­ benefits, and work rule concessions were attendants is both an old and a new story. ty as it sold the restructured debt instru­ sought from the TWA flight attendants. More­ On the one hand, it is the story of a pre­ ments to new investors. The intention of the over, nearly 4,000 flight attendants who of­ dominantly female work force that claims it bill is that the debt deconcentration facility fered to return to work on an unconditional is being singled out for discrimination

Springfi~ld; and disadvantaged children at Lockwood says. At a minimum, "you have to have an 800 number for getting more infor­ Camp Garrett in Newtown Square. go shopping and take him for walks." mation; until it does, a person can write The dedication of my constituents prompts Until the last few years, however, scien­ Purina in St. Louis or get in touch with the me to make this offer: I hereby affirm to my tists have been unable to prove that animals local humane society. have a healthy physiological effect on Many organizations match pets with colleagues my willingness to assist them in people. But studies indicate that pets can senior citizens or arrange for pets to visit on helping establish similar volunteer activities in help people recover quickly. a regular basis. If your area is not listed, their own districts. I'm proud of the initiatives At the same time, the notion that animals your local humane society may know of a shown by our Delaware Valley volunteers, and might be dangerous to have around older similar program. I'd like to help spread their enthusiasm and people is evaporating. A survey of nursing The Delta Society also keeps track of such wisdom throughout this Nation. homes in Minnesota showed that animals programs. For information, write Linda Mr. Speaker, I am proud to bring to the at­ posed less risk to patients-in causing acci­ Hines, PO Box 1080, Renton, WA 98057, or tention of my colleagues this outstanding or­ dents, for example-than other activities call (206) 226-7357. did. Pet visitation programs: ganization. I am submitting for the record the All this is good news for homeless cats and Pets on Wheels, Baltimore City Commis­ article from the Christian Science Monitor, and dogs, which are suddently star attractions sion on Aging and Retirement Education, also a previous article from the County Press as visitors at institutions like nursing homes (301> 396-1762. Humane Society of the Pikes which explains in more detail the wonderful and hospitals. Pets are going places no one Peak Region, P.O. Box 187, Colorado work that Pals for Life performs for our com­ ever dreamed of-including, Mr. Arkow Springs, CO 80901, <303> 473-1741. munity. hopes, an AIDS hospital in Houston soon. San Francisco SPCA, <415> 554-3060. CFrom the Christian Science Monitor, "The barriers have really come down," as Pals for Life, Philadelphia, <215> 525-7120. Feb. 18, 1987] institutions recognize that animal visits are Greater Cincinnati Council for Pets Help- no more dangerous to older people than ing People, <513> 683-0957. A WINNING COMBINATION-ELDERLY TAKE IN other activities, says Paula Kielich, who Companion Animal Association of Arizo­ THEIR "VISITORS" HOMELESS PETS runs Philadelphia-based Pals for Life. na, Phoenix, Ariz., (602) 258-3306. , <814> 865- million Americans over the age of 65, and 8 ly once a month. Whereas institutions used 1717. million of them live alone. At the same to blanch at the idea of dogs and cats run­ time, 10 million dogs and cats are put into ning around, "now we have more demand animal shelters each year, and 8.5 million than we can meet," she says. EDITORIAL REAFFIRMS PRESI­ are never adopted. This can add up to com­ The advantage of using shelter animals­ DENT'S FOREIGN POLICY ROLE panionship for the elderly and a home for as does Pals for Life, the Pikes Peak pets. Humane Society, and perhaps the largest Mathematics, of course, cannot quantify service, the San Francisco Society for the HON. GERALD B.H. SOLOMON how Shylo, a white Bishon Frise, saved the Prevention of Cruelty to Animals, which OF NEW YORK life of Inez Ekstron, or how Ms. Ekstron visits 1,500 people a month-is that the pets IN THE HOUSE OF REPRESENTATIVES saved Shylo's. The two recuperated togeth­ often get adopted. In the last two years, er, taking "siestas" each day and feeding more than 130 animals have been snapped Thursday, March 5, 1987 the birds outside Ekstron's house in Minne­ up by families of the people they visit, or by Mr. SOLOMON. Mr. Speaker, it is my pleas­ apolis. Shylo is no longer a skinny, mat­ staff members of the institution, Ms. Kie­ ure to insert in the RECORD what I consider haired puppy terrified of people. Ekstron is lich says. no longer lonely. Other visitation programs, like the Balti­ the definitive word so far on the so-called Ekstron's daughter thought she might more-based Pets on Wheels, have volunteers Iran/Contra affair, an editorial which appeared have to quit her job to take care of her bring their own pets. That gives continuity in the Wall Street Journal on March 4, 1987. mother after her previous dog died a year to the relationship-both the human-animal This editorial reminds us that foreign policy is ago. "But since she got the dog, she's turned and the human-human relationship, says the responsibility of the President, and that around 180 degrees," says Donna Loegering. Elaine Farrant, who runs the program for the attempt by Congress to usurp that author­ Across the country, animal shelters are the city. Volunteers visit the same people ity is what caused this problem in the first playing the dating game. Last week their ef­ each week, "and a lot of these people place: forts to match dogs and cats in shelters with wouldn't get any other visitors if it weren't senior citizens got a big boost when Ralston for Pets on Wheels," she says. THI: PRESIDENT'S SPEECH Purina launched its $1 million "Pets for Placement programs, which find an "What we most need is to get the CIA re­ People Program." During the next year, animal a permanent home with an elderly engaged in this effort so that it can be better Purina will foot the bill to get some 10,000 person, have been slower to get off the managed than it now is by one slightly con­ cats and dogs out of animal shelters and ground. Part of the reason is the cost; the fused Marine Lt. CoL "-Oliver North, com­ into the homes of the elderly. average cat or small dog costs $175 to $225 a puter message to Adm. , This kind of program, coupled with a slew year to feed and care for. One new program June 10, 1986 ( report ap­ of local ones that have sprung up in the last in Long Island, called Pioneers for Animal pendix BJ. couple of years, comes not a month too Welfare Society . is using a $25,000 How did running initiatives like aid to the soon, says Philip Arkow, who runs the Pikes government grant not only to place shelter contras and the Iran arms shipments fall to Peak Humane Society, in Colorado Springs, animals, but to cover all their costs if neces­ one overworked, undersupervised National Colo. In March, a law passed in 1983 will go sary. That includes food, training, veteri­ Security Council staffer, who himself recog­ into effect allowing senior citizens in subsi­ nary services, and water bowls. nized he was in over his head? This question dized housing to keep cats and dogs in their Ralston Purina is going nationwide with a is what the Tower Commission report is all apartments. That will open up 900,000 units. scaled-back version. It will pay for the adop­ about. The Tower Commission's comments While not all of those residents will find tion and fee, initial vet services

91 - 059 0-89-17 (Pt. 4J 4956 EXTENSIONS OF REMARKS March 5, 1987 INTRODUCTION OF THE FAMILY return for their work, and they support it be­ duced input use will cut production costs, FARM ACT cause they know a viable family farm sector is ground water contamination and runoff that in their best interest. pollutes our waters. HON. RICHARD A. GEPHARDT Today, we are introducing a farm bill for the While our proposal raises food prices a bit, OF MISSOURI family farmer. We propose action on two of the increases are relatively modest and simply IN THE HOUSE OF REPRESENTATIVES the biggest · problems facing the American return farm purchasing power to levels that farmer: low income and excess debt. Thursday, March 5, 1987 prevailed before the Reagan administration First, we propose giving farmers a chance took office. The equivalent of 1 of every 12 Mr. GEPHARDT. Mr. Speaker, today I am to vote on a progam that gives them a rea­ income tax dollars now goes to the farm pro­ introducing the Family Farm Act to restore op­ sonable price in return for shared, progres­ gram: a lower tax burden will help offset these portunity to rural America and take action on sively distributed production cutbacks. costs. the biggest problems facing our farmers By allowing farmers to limit production-not The second component of the Family Farm today. just the acreage they plant-our program will Act is immediate action to restructure farm It's clear that our farm policies are failing to better manage supply. Without more Govern­ debt. For years we have stretched out loans achieve the basic goal of preserving opportu­ ment spending, supply control is the only way and hoped for a recovery that the 1985 farm nity for a good life in rural America. At a time to restore farm income to the levels that pre­ bill has not brought. The time for quick fixes of record budget deficits we are spending 1O vailed before the administration took office. and procrastination has passed. Thousands of times more on farm payments than we were Compare the present farm bill and the farmers are barely hanging on. just 7 years ago. But all we've bought is the Family Farm Act: America's farmers carry almost $200 billion highest loss of family farmers in nearly 20 Net farm income in debt, approximately twice what Brazil owes years. [In billions of 1967 dollars] to foreign lenders. Fully $35 bilion of this may We have given multimillion dollar payments sour over the next few years. A third of our to some giant farms, but our program pushes Actual: 1971 ...... , ...... $12.3 family farmers are in deep financial trouble. 180 families off their farms every day. 1973...... 25.8 Many of them are the young, well-educated Half of America's midsized family farmers 1975...... 15.8 are expected to be out of business within a 1977 ...... 10.9 farmers who simply had the bad luck to decade. The farm economy and the rural 1979...... 14.6 borrow at the wrong time. And as the shake­ towns built around the family farm are collasp­ 1981...... 11.9 out continues and as more foreclosures ing. 1983...... 5.0 sweep the country, credit will dry up further, The farm debate this year must focus on a 1985...... 9.8 jeopardizing the livelihoods of thousands simple question: Can we spend $26 billion a 1986...... 8.8 more. Estimated: FAPRI analysts estimate that the farm debt year to give large payments to some farmers Present law: but write off the family farm and the rural com­ 1987...... 11.0 crisis could produce an economic contraction munities the family farmer supports? 1988...... 10.5 that would cost the Federal Government over The administration says we cannot affOid 1989...... 8.8 $20 billion in lost tax revenues. The farm debt our family farmers. I ask: Can we afford to 1990...... 7.8 crisis, they estimate, justifies Federal spending lose them? 1991...... 7.3 on debt restructuring of $2 billion per year. Every six farmers who go broke take a rural 1992...... 6.4 The legislation we are announcing today 1993...... 5.9 proposes a joint Federal-State effort to help business with them. Joblessness and poverty 1994...... 5.2 in rural America have increased in recent lenders and borrowers restructure farm debt. 1995...... 4.8 States would help lenders and borrowers work years. Many towns can't provide even basic Family Farm Act: services. Can we afford this destruction of our 1987...... 16.7 together to restructure debts through media­ rural communities? 1988...... 11.8 tion. The Federal Government would provide We see tens of billions of dollars in bad 1989...... 11.2 debt restructuring assistance to increase the debt at the Farmers Home Administration and 1990...... 12.l possibility that families could stay on the land the Farm Credit System. One ag bank fails 1991...... 11.8 until farm income recovers. 1992...... 12.7 In States like Iowa and Minnesota, a lender each week. Can we afford the shock to our fi­ 1993...... 14.2 nancial system? 1994...... 14.9 must sit down with his borrower before fore­ America's family farms remain the consum­ 1995...... 15.0 closure to explore options that might keep the er's best insurance policy against an oligop­ Source: U.S.D.A., Agricultural Statistics, 1985; borrower in business. olistic agriculture. Can we afford to let a few Food and Agricultural Policy Research Institute, These mediation programs provide a neutral megafarms dominate farming? February 1987. third-party to help the lenders and borrowers The fundamental problem is that demand The Family Farm Act restores net farm discuss constructively how to keep the farmer for U.S. farm products is way down. Countries income and represents a reversal of policies in business. The borrower may have to make that bought our grain a few years ago are that so favored the megafarm and corporate some adjustments-but he keeps his farm. meeting their needs. We have focused on agriculture. This program gives more help to The lenders may have to write down part of moving bulk grains, ignoring the real growth family-sized farmers, and it gives them the the debt-but they keep their customers and area: high-value farm products. When the tools they need to invest in the new farming avoid the losses associated with liquidation world market for grains slowed and the high techniques soon to come on line. and foreclosure. The emphasis is on practical dollar cut America's competitive position, The Family Farm Act will give farmers their solutions that help all sides. American agriculture crashed. income through the marketplace rather than There is no obligation to reach any agree­ The administration's lower loan rates-de­ through Federal payments. By eliminating ment, but the States have found that simply signed to boost exports-will not capture direct subsidies, it reduces Government getting people together to talk helps. The me­ enough exports to restore farm income. Under costs-a formula that already works for other diation programs in Iowa and Minnesota have current policies, agricultural export volume crops grown domestically. kept several thousand farmers on the land could nearly double by 1994, but real net farm Assuming we can negotiate an international who otherwise would have gone out of busi­ income is projected to fall by half. So the cur­ marketing agreement, the Food and Agricul­ ness. rent farm program will not end the suicides, tural Policy Research Institute [FAPRI] at the Under our proposal, lenders and borrowers family agonies, and foreclosures. University of Missouri and Iowa State esti­ who mediate a debt restructuring agreement As John F. put it, "The American mates Government savings-even when debt would be eligible for 3 years of Federal assist­ farmer is the only person in our economy who restructuring costs are included-as averaging ance, either a loan not to exceed $30,000 an­ buys everything he buys at retail, sells every­ $7 billion per year over the next decade. nually or a cash grant of equivalent value. thing he sells at wholesale and pays the The Family Farm Act allows farmers to This help would provide the farmer time for freight both ways." Americans know that we reduce production through reduced input use needed restructuring and added cash flow need a program to help farmers get a fair rather than through acreage reductions. Re- until income recovers, and reduce the risk of March 5, 1987 EXTENSIONS OF REMARKS 4957 default for lenders. Needy families leaving exceed 35 percent of the acreage base. The shares. If after 9 months a multilateral farming could receive help for retraining, relo­ Secretary may offer a paid diversion pro­ agreement has not been consummated, then cation, and family support. gram above 35 percent if necessary to bring the Secretary would be mandated to use Finally, this bill takes steps to ensure that supply in line with demand. export PIK or cash subsidies to maintain E. Marketing certificates will be assigned exports. Federal programs reach minority farmers, who to each producer based upon each produc­ B. Requires the Secretary to exercise au­ have been going out of business at rates er's acres permitted to be planted multiplied thority under Section 22 of the Agricultural double those of nonminority farmers. It used by that farm's established yield. A commod­ Adjustment Act to prevent imported com­ to be that 1 of every 7 farmers was black: ity may not be marketed without a market­ modities from interfering with the oper­ blacks now represent just 1 of every 70 farm­ ing certificate. Commodities produced in ation of the price support program. ers. We take action to ensure that minority excess of the marketing certificate quantity C. Requires the labeling of an agricultural farmers receive fair access to the Farmers may be stored and marked under a certifi­ product when a significant percentage of Home Administration limited resource loan cate issued in a subsequent year, donated or that product, either by value or volume, is program and to the debt restructuring assist­ sold to the CCC at no more than 50 percent imported. of the loan rate for the purpose of famine D. Prohibits the importation of food items ance provided in this act. Provisions ensur<" relief. which contain the residues of chemicals pro­ that funds going to nonminority groups are not F. Farmers may avoid acreage restrictions hibited from use in the United States. reduced. by filing a plan for meeting their reductions V. Food Assistance.- Analysts at the University of Missouri and through other methods e.g. reduced pesti­ Offsets any increase in retail food prices Iowa State estimate that our bill could keep cide and fertilizer use. resulting from this bill by increasing bene­ three of four farmers on the land who other­ G. The Secretary may issue marketing fits under the food stamp program, school wise will go out of business. certificates to importers of commodities and lunch program, the school breakfast pro­ We must act quickly to reverse the down­ commodity products which do not exceed gram, and WIC program. limitations imposed by Section 22 of the Ag­ Increases appropriations for consumer ward spiral in rural America. Farmers embody ricultural Adjustment Act. education, changes eligibility for food the spirit of America: independence, self-suffi­ H. A farmer disaster reserve is created. stamps, expedites food stamp service, au­ ciency, and excellence. A part of that spirit Each producer must contribute a portion of thorizes provision of information on food dies every time a farm hits the auction block. his production, determined on an actuarial­ stamps to homeless individuals. Establishes The despair that has gripped rural America ly sound basis, to the reserve. In the event a National Nutrition Monitoring Plan to is no excuse for inaction. The problems of the of a disaster, an affected producer will re­ assess national nutritional trends, including farm economy were not caused by weather or ceive commodities from the reserve equiva­ those for children, the elderly, low-income disease, but by human beings and institutions lent to 90 percent of his marketing certifi­ populations and minorities. that human beings control. As such these cate less the amount actually produced. VI. Family Farm Debt Restructuring Pro­ However, the value of commodities received gram.- problems can be solved. The farm crisis can under this program may not exceed Farmers who reside in qualifying states be solved if we are determined to make Amer­ $360,000 annually. and enter into qualifying debt restructuring ica first again. I. Storage payments made under the re­ agreements are entitled to federal debt re­ OUTLINE OF THE HARKIN/GEPHARDT FAMILY serve program would be the same for on­ structuring assistance. To qualify, states FARM ACT farm and commercial storage. must set up mediation programs meeting I. Referendum Program for Storable Com­ II. Livestock Transition Program.­ the criteria listed below. modities rwheat, corn, grain sorghums, Livestock producers would be permitted to A. State Mediation Programs: barley, oats, rye, upland cotton, rice, and purchase existing stocks of CCC grain for a 1. State mediation programs shall provide soybeans).- 36 month period beginning 30 days after en­ neutral, third-party advice to borrowers, Prior to August 1, 1987, and each 4th year actment. The benefits under this program creditors and lenders to discuss alternatives thereafter, the Secretary shall conduct com­ would be targeted to not larger than family­ to foreclosure and to explore debt restruc­ modity specific referenda except in the case size farms and ranches and could not exceed turing options. of wheat and feed grains which will be a $50,000 per producer. The sale price would 2. State programs must: train adequate Joint referendum. If a majority of the pro­ be determined by the Secretary but could numbers of competent mediators; provide ducers vote in favor, a supply management/ not exceed the total cost of the grain to the mediation services for not more than a rea­ marketing certificate program will be in CCC. sonable fee on a voluntary basis when re­ effect for that commodity for the subse­ III. Milk Marketing Base Program.­ quested by both creditor and lender; provide quent four years. If a referendum fails, the Within 30 days of enactment, the Secre­ borrower the right to request a 42-day medi­ current farm law will apply. Upon passage tary will conduct a referendum among com­ ation period before foreclosure; and provide, of a referendum by a majority vote: mercial milk producers to determine wheth­ for not more than a reasonable fee, finan­ A. Minimum loan rates would be estab­ er such producers are in favor of a national cial and management counseling, and assist­ lished at 70 percent of parity in 1988 and milk marketing base program for calendar ance needed to help farmers prepare and would be increased by 1 percent annually year 1988 or favor continuation of current analyze debt restructuring alternatives. thereafter up to a maximum of 80 percent law. Subsequent referenda would be held at 3. State/Federal matching grants of up to of parity. The Secretary shall review this the same time other commodity referenda $1,000,000 per state are authorized to pay schedule after five years and made a recom­ are conducted. Upon passage of a referen­ administrative expenses. mendation regarding continuation of the dum by a majority vote: 4. Requires good faith cooperation by the schedule to Congress. Target price pay­ A. The Secretary will establish the loan FmHA, the Farm Credit Administration, ments and other subsidy payments would be support level at 70 percent of parity to be the FDIC, and the SBA with state media­ suspended. increased by 1 percent of parity per year tion programs, and requires the restructur­ B. The Secretary will proclaim a national thereafter to a maximum of 80 percent of ing of loans when cost of restructuring is marketing quota for each commodity, based parity. Continuation of this schedule after less than the cost of foreclosure. upon projected domestic demand, export the first five years would be contingent B. Farm debt restructuring assistance: demand, food aid, requirements, carryover, upon a USDA study and review by Congress. 1. Program is administered through and reserve requirements. The Secretary B. The Secretary will establish a market­ County Emergency Debt Restructuring shall then proclaim a national acreage allot­ ing base for each producer considering a Committee constituted from county FmHA ment on acres based upon projected nation­ producer's history from 1981 to 1985 and and ASCS committees. Secretary may ap­ al yield. any adjustment necessary to bring supply in point additional members to ensure fair rep­ C. Each producer will submit planting in­ line with demand on a national basis. resentation of minorities. tentions for each commodity to the Secre­ C. A procedure is established, utilizing 2. Debt restructuring agreements that tary in accordance with the farm crop acre­ county ASCS committees, to adjust individ­ meet certain criteria enable borrower to age base. The Secretary will then determine ual producer bases and reallocate unused qualify for Federal debt restructuring assist­ the set-aside percentage to balance supply bases to existing and new producers under ance. No-interest assistance loans of up to with demand. an established priority system designed to $30,000 for three years may be provided to D. The Secretary establishes a targetting foster new and existing family-sized farming help with debt service and operation re­ mechanism to distribute the acreage set­ operations. structuring. Borrower may elect to take as­ aside on a progressive basis for each farm so IV. Agricultural Exports and Imports.- sistance as a cash grant of equivalent value. that a greater set-aside percentage will be A. Requires the President to enter into 3. Following the period over which loans required as farm size increases. In no event multilateral negotiations with other food are made, there is a two year grace period, would the unpaid set-aside on any one farm exporting nations to preserve market which may be extended two years if condi- 4958 EXTENSIONS OF REMARKS March 5, 1987 tions in agriculture do not improve. Five select few whose names become almost syn­ established by the pilot program to be illegally, years is allowed for payback. onymous with public service. unilaterally terminated by the Army and the 4. Eligibility: Family farmers with gross Sadly, last Saturday, James Alfred Rohan, sales of less than $500,000 and experiencing contract then being performed by Univox to financial stress. Non-farm income can not Chief Doorman in the House of Representa­ be deliberately delayed, creating severe finan­ exceed $45,000: reductions in assistance are tives, passed away. With his death, we lost cial pressures on the company. made after non-farm income reaches one of those select few individuals. The increased financial difficulties were $30,000. Farmer cannot cash flow but must Epitomizing the American commitment to then exacerbated by an overzealous EDA demonstrate that assistance will provide for public service, Mr. Rohan, as Chief Doorman, staff who began an illegal collection of a de­ the continuation of a financially viable coordinated planning for visiting Heads of linquent loan, to enhance the financial interest farming business for 5 years. State who appeared before joint meetings of C. Debt restructuring aid payments are of certain EDA staff. Evidence exists that a prohibited to producers who produce com­ the Congress as well as State of the Union smear campaign was initiated by these EDA modities on erodible land or converted wet­ messages delivered by four Presidents. Mr. individuals through presentation of misinforma­ lands. Rohan took charge of arrangements for all tion to Members of Congress and stepped up D. Banks may write off over 10 years the special events taking place in the House through recent statements to various news losses they have taken under debt restruc­ Chamber. media wherein libelous, erroneous, misleading, turing agreements. James Rohan-before coming to Washing­ and misstatements of known facts, in their E. Transition assistance for farm families ton-served as an assistant to the mayor of leaving agriculture: makes available own records, were reported to be the result of St. Louis, attained the rank of captain in the an l.G. audit. through state programs home energy assist­ U.S. Army and had a successful business ance, limited income support, relocation as­ Univox has found itself in a precarious pre­ career in St. Louis. sistance and employment services available dicament that could not have been predicted, Mr. Rohan leaves behind a great legacy for to families facing severe financial hardship yet is now understandable, because of the ex­ all of us. He was a dedicated man who will be and leaving farming. State programs are fi­ pected value of the equipment reserved under nanced through block grants made by the greatly missed by his friends, his colleagues the pilot program and future generation of that Federal Government. and his loving family. F. Revises eligibility for homestead pro­ equipment to certain defense contractors and tection to include small farmers: minimum individuals with the procurement activity, and sales requirement is lowered from $40,000 to COMPANY'S VIABILITY ENDAN­ the extraordinary financial and career rewards $10,000. GERED RATHER THAN HELPED recently attached to the performance of cer­ G. Provisions ensure equal access to feder­ BY DOD tain individuals within the EDA. al credit programs for minority farme•s. Although Univox has taken legal counsel's Limited resource loans would be provided in proportion to minority farmers' representa­ HON. MERVYN M. DYMALLY advice and initiated a suit against the EDA for tion in the county farm population, with OF CALIFORNIA its illegal loan actions and for causing harm to provisions to prevent any reductions to non­ IN THE HOUSE OF REPRESENTATIVES the company's reputation as a result of its minority farmers. Includes reporting re­ media assault, it is clear that we, the Con­ quirements. Thursday, March 5, 1987 gress, have a situation of defiance of our Mr. DYMALLY. Mr. Speaker, I wish to report mandate by those charged to implement our TRADE REMEDY FOR to the Congress a serious violation of the law law and that contrary to the intent of the law NONMARKET ECONOMIES which has the effect of devastating a signifi­ to facilitate viability, the illegal action by Army cant employer in my district. personnel will cause, instead, the exact oppo­ HON. RICHARD T. SCHULZE Several years ago a small, minority-owned site of viability, or in other words, the financial manufacturer, Univox California, Inc., was se­ demise of the participant, Univox. Therefore, I OF PENNSYLVANIA lected, under a congressionally mandated pro­ request that Congress immediately investigate IN THE HOUSE OF REPRESENTATIVES gram, for minority business development, au­ this matter and take actions against anyone Thursday, March 5, 1987 thorized by Public Law 95-507, to produce found guilty of such defiant behavior. The Mr. SCHULZE. Mr. Speaker, today, I am in­ 600-gallon-per-hour reverse osmosis water pu­ Army must be made to understand that con­ troducing legislation designed to provide an rification units under the pilot program provi­ gressional intent is controlling, and the com­ effective trade remedy for U.S. industries sions of Public Law 95-507. This opportunity mitment to the pilot program provisions of which experience market disruption from non­ held great promise for the national intent to Public Law 95-507 and Univox must be hon­ market economy imports. develop minority business and for solely ored. For many years now, there has been wide­ needed jobs in a high unemployment part of Finally, Mr. Speaker, permit me to also spread recognition that our current trade laws my district. enter into the record a procurement document are ineffective in dealing with unfair and injuri­ Through recognized outstanding perform­ produced by the Army which shows that they ous trade from , nonmarket economies. After ance of the company and its employees, had full knowledge of the law and the contrac­ years of debate on this issue, it is about time whose number had grown by more than 200 tual obligations under the pilot program prior that Congress finally rectifies the problems we people, equipment began rolling off the new to their violation of its provisions. It is entitled have confronted in this area of trade. production lines on or ahead of contract "Disposition Form." I invite your attention to We can no longer afford to let this trade schedules and meeting all performance re­ the page entitled "Additional Work and Serv­ problem go unresolved which is why I am in­ quirements-a feat not often accomplished by ices-600 ROWPU Assembly Contract 80-C- our most experienced and prestigious defense troducing this legislation. I urge my colleagues 0026 Univox-California." The first paragraph contractors. The CONGRESSIONAL RECORD will to support this measure as an effective alter­ on this page reads: native to our current trade statutes with re­ show that the amount reserved for Univox under this program was $400 million. The Cl> This procurement cannot be solicited spect to nonmarket economies. competitively at this time because the 600 Army illegally withdrew procurement assist­ GPH ROWPU was selected by the Small ance after the company had received only Business Administration CSBAJ as a pilot TRIBUTE TO JAMES ALFRED $75 million of the reserved amount, and when program under a congressionally mandated ROHAN the SBA-the legally designated agency to re­ program for minority business development lease the program-insisted that continued under Public Law 95-507, and implemented HON. JACK BUECHNER procurements were essential to the survival of by a DA/SBA interagency agreement. The Univox. contractor will remain the single source OF MISSOURI until the program is released by the SBA. IN THE HOUSE OF REPRESENTATIVES It was at this point that, what now appears to have been a conspiracy between certain Mr. Speaker, the SBA did not release this Thursday, March 5, 1987 persons at the Ft. Belvoir procurement staff program, on the contrary, the SBA made sev­ Mr. BUECHNER. Mr. Speaker, while we in and certain defense contractors, actions were eral requests to continue procurements to this great Nation are blessed with many out­ taken to cause the public law to be violated Univox citing the criticality of these procure­ standing, selfless individuals, there are a by the Army, by virtue of the contract support ments to the company's viability. The Army March 5, 1987 EXTENSIONS OF REMARKS 4959 unilaterally and illegally withdrew contract sup­ over the age of 90, the rookie of the group cents and the young woman is not given any port. has served 18 years, and the veteran has put information about adoption plans. ADDITIONAL WORK AND SERVICES- in 56 years of uninterrupted service. Title X is currently the largest Federal pro­ 600 ROWPU ASSEMBLY CONTRACT It is my hope that these officers know just gram attempting to deal with the problem of 80-C-0026, UNIVOX-CALIFORNIA how valuable they are to the voters of San teenage pregnancy, and more than a third of Single Source Justification. Diego County. I am honored to bring their the individuals served by this program are "Cl) This procurement cannot be solicited names to the attention of my colleagues in adolescents. In a recent report on teenage competitively at this time because the 600 the historic 1OOth Congress: Arthur J. Vail of pregnancy, the National Research Council GPH ROWPU was selected by the Small Business Administration CSBAl as a pilot Fallbrook, Grace L. Bullard of Oceanside, noted this fact and stressed that adoption program under a Congressionally mandated Anna Skeie of La Mesa, Mary Boyle of San should be an option for pregnant adolescents. program for minority business development Diego, Bette Tataronus of National City, Ora The report acknowledged the many agencies under public law 95-507, and implemented Marker of San Diego, Gloria Leitch of Bonita, involved in a teenager's pregnancy-including by a DA/SBA interagency agreement. The and Emily Brose of la Mesa. family planning clinics for pregnancy testing, contractor will remain the single source health and social service facilities for services until the program is released by the SBA." during pregnancy, labor and delivery, and , the time required to solicit and for some pregnant teenagers to make adop­ train a new contractor would be prohibitive. HON. THOMAS J. BULEY, JR. tion plans." Univox has developed a management and a OF VIRGINIA The Council's report also included the rec­ production capability that will allow them IN THE HOUSE OF REPRESENTATIVES ommendation that "public agencies, in coop­ to meet the accelerated production rate of 25 to 35 high quality units a month needed Thursday, March 5, 1987 eration with the private sector, explore ways to satisfy the USMC requirements. Mr. BULEY. Mr. Speaker, last week I intro­ of strengthening adoption services, including <3> Awarding a contract modification is ad­ duced legislation to amend title X of the Public (1) improved decision counseling for pregnant ministratively faster than initiating a new Health Service Act to allow family planning teenagers, and (2) development of effective contract. models for providing comprehensive care to <4> The technical data package is being clinics to provide, at their discretion, adoption services. pregnant girls who choose adoption as an al­ maintained current through configuration ternative to parenthood." This legislation is a management and is available for immediate For too long our image of family planning or subsequent competitive follow-on pro­ has been exclusively the prevention of preg­ much needed start in that direction. curements if and when the ROWPU pro­ nancy, the limiting of family size, or the spac­ Mr. Speaker, adoption is a positive alterna­ gram is released by the SBA. ing of children. It is time to recognize the im­ tive for women, particularly adolescents, with Cb) Statement of Work and Services. The portance of planning families through adop­ unintended pregnancies. Since family planning contract line items listed in paragraph c. tion, thereby benefitting children born to par­ clinics are often tl:le first point of contact be­ below shall be delivered in accordance with tween these women and the health care the terms and conditions of the basic con­ ents unable to care for them and couples who would otherwise be unable to establish a system after they have become pregnant, tract as modified. these clinics are the most important places to Request that the following contract family. line item be increased as follows: If a young woman becomes pregnant, she provide information about adoption. may not know much about adoption, and the This provision authorizing adoption services CUN and supplies Quantity Amount counselors she encounters may also be would not substantially divert funds from cur­ poorly informed. Even if a woman considers rent family planning services. The language of OOOlAH: 600 GPH ROWPU skid-mounted USMC adoption, it is not unusual for her to dismiss it this amendment is intended to be permissive, configuraration ...... 280 $34,160,000 prematurely as too difficult and, instead, not obligatory. It would not force any grantee choose to have an abortion or, if she is single, to offer adoption services; it merely clarifies Request that this modification contain op­ raise her child out of wedlock. No pregnant that grantees may do so. Since the title X tions for the contract line items listed woman should ever be coerced into releasing statute requires that grantees provide a com­ below: her child for adoption, but she should be able prehensive range of family planning services, to make a truly informed decision after consid­ this provision could not result in the funding of CUN and supplies Quantity Amount ering all her alternatives. My hope is that this adoption only services projects. bill will encourage counselors to present the Mr. Speaker, this language, which is similar 0003ADIUSMC) : Spare/repair parts pack ...... 280 $946,400 0004AD USMC) : Consumable packs ...... 280 2,566,400 adoption option to a woman as a real choice, to legislation which I introduced in the 99th 0004AB USA) : Consumable parts pack ...... 120 405,600 Congress, was added as an amendment to 0004AB USA) : Consumable packs ...... 120 1,095,600 a positive choice, and quite possibly the best choice. title X reauthorization in the Senate Labor and For some time now, we in Congress have Human Resources Committee last year. The recognized the growth of sexual promiscuity committee also approved a perfecting amend­ TRIBUTE TO POLL OFFICERS IN among teens_ As a result, teen pregnancies ment by the Senator from Ohio [Mr. METZ­ SAN DIEGO COUNTY have increased dramatically. But these are not ENBAUM] to require that any adoption services just numbers. Each young woman must face provided shall be nondiscriminatory. The Sen­ HON. DUNCAN HUNTER the reality of her own situation. Tragically, ator's amendment improves this legislation most pregnant adolescents never get a and I have added it to the original language. OF CALIFORNIA chance to consider the adoption alternative To clarify the intent of this legislation, I in­ IN THE HOUSE OF REPRESENTATIVES because of the deficiency of her counselor's, clude the following statement on the Adoption Thursday, March 5, 1987 and her own, knowledge of the process. Services Amendment from the Committee Mr. HUNTER. Mr. Speaker, I rise today to A recent study by Edmund V. Mech of the Report on the Family Planning Amendments pay tribute to a group of loyal Americans who School of Social Work at the University of Illi­ of 1986, S. 881 (S. Rept. 99-297): are responsible for protecting one of our nois at Urbana-Champaign showed a signifi­ The legislation contains a new provision country's greatest liberties, the right to vote. cant adoption gap among counselors. Mech which permits Title X projects to offer These fine people are poll officers in Cali­ found that counselors believe that most preg­ adoption services. The provision does not re­ nant adolescents will not choose to place quire that family planning projects offer foria's beautiful San Diego County. Year after adoption services; projects may determine year, election after election, they provide the their children for adoption, use nondirective whether they wish to offer adoption serv­ citizens of San Diego County with effective­ counseling techniques, and rarely initiate dis­ ices in addition to the counseling, and refer­ ness and efficiency that is unsurpassed. cussion of the adoption option. As a result ral upon request, which are included in the There are several unique aspects about this adoption often is not considered as an alter­ existing Title X guidelines. The Committee group of eight great patriots: Two of them are native in the counseling of pregnant adoles- does not intend any changes in the general 4960 EXTENSIONS OF REMARKS March 5, 1987 mission of the Title X law or projects, nor THE INTRODUCTION OF THE Springs before the rails are torn up giving way any diminution of federal support for grant­ MEDICARE AND MEDICAID PA­ to a planned light-rail county transit system; ees or projects not electing to expand their TIENT AND PROGRAM PRO­ band concerts, a carnival, an apple pie-baking services. TECTION ACT OF 1987 contest, beard-growing contest, tales of Flori­ The definition of adoption 'services' is vague to allow flexibility in services family da folklore, music, dancing and more. planning providers may offer. Examples of HON. FORTNEY H. (PETE) STARK Kathleen Monahan, cultural affairs director services include, but are not limited to, OF CALIFORNIA for Tarpon Springs, particularly deserves men­ adoption education programs, training, IN THE HOUSE OF REPRESENTATIVES tion for her tireless efforts attending to a myriad of details and keeping this birthday counseling, referral and placement services. Thursday, March 5, 1987 The Committee does not intend the use of party on track, but I want to commend every­ subcontracting for these services. During Mr. STARK. Mr. Speaker, today I am one involved in making this a special celebra­ Senate Committee on Labor and Human Re­ pleased to join with my colleague, Mr. GRADl­ tion. sources deliberation over this amendment a SON, the ranking member of the Ways and Mr. Speaker, this year also marks the 1OOth reference was Csicl made to the Family Means Health Subcommittee, and with anniversary of one of the counties in my con­ Health Council of Western Pennsylvania as Messrs. WYDEN, WAXMAN, MADIGAN, PEPPER, gressional district: Pasco County-a communi­ an example of a program which provides and with many other Members to introduce ty of communities, all working together over adoption services. Secondly, it is the inten­ the Medicare and Medicaid Patient and Pro­ tion of the Committee that when "adoption the years, sharing challenges and dreams. gram Protection Act of 1987. Back in 1887, when Pasco County was services" includes placement services, as in On May 1, 1984, the General Accounting the Family Health Council example, those founded and named for Samuel Pasco-U.S. placement services are offered only by a Office issued a report documenting serious Senator and chairman of the 1885 Florida project which has obtained a child place­ gaps in existing law. These gaps allow unfit Constitutional Convention-things were quite ment license. The Committee does not physicians to provide services to Medicare different than they are today. There were only intend to authorize the expenditure of Title and Medicare beneficiaries. 38 stars on Old Glory and railroads were just The House moved swiftly and unanimously X funds for placement services except when reaching into southwest Florida's wild and to approve H.R. 1868, the Medicare and Med­ such placement services are offered by a wide-open beauty. Title X project which is also a licensed child icaid Patient and Program Protection Act of Pasco County still is beautiful today, if a bit placing agency. Where state adoption licens­ 1985. H.R. 1868 would have closed the loop­ less wide open. It is one of the fastest-grow­ ing requirements do not exist, such services holes in current law. Unfortunately, legislative ing areas in the entire Nation, and that is a must be provided in compliance with state action was not completed in the 99th Con­ laws regarding adoption services. gress. tribute not only to the natural beauty but to The legislation also provides that services We cannot afford further delay. The Medi­ the enterprising, friendly people there. offered are to be nondiscriminatory as to care and Medicaid Patient and Program Pro­ Times may have changed. We have a few race, color, religion, or national origin. This ttlction Act of 1987 is based on H.R. 1868. more stars on Old Glory now, but the celebra­ amendment is not intended to affect the ap­ The legislation has wide bipartisan support. tion of caring, sharing and dreaming that plicability of any existing federal provision began in Pasco County 100 years ago contin­ intended to prevent discrimination on the With this legislation, the Secretary of Health and Human Services will have clear authority ues today. basis of these or other factors. The lan­ The cochairmen of the centennial, Alex guage is not intended to prohibit agencies to protect patients from incompetent provid­ from taking into account all relevant factors ers. At the same time, the Secretary will have Acey and Joe Herrmann, are two of those in deciding to place a child in a setting new power to protect Federal health benefits people who have dreamed and cared along which is in the child's best interest. Howev­ programs from fraud and other abuses. with the rest of Pasco County, and who share er, adoption services should not be denied Mr. Gradison is to be commended for taking a vision of its future. They have done a tre­ · nor significantly delayed on the basis of fac­ the lead in developing this important legisla­ mendous job of organizing this celebration of tors specified. This amendment is not in­ tion. I will make every effort to move the bill the proud past of Pasco County. tended to prevent discrimination on the ahead. Last, but not least, Mr. Speaker, let me tell basis of these other factors. you about the 52d Annual Strawberry Festival. For the purposes of this new provision, I would like to read a small part of a letter projects are defined as delegate agencies or THE lOOTH ANNIVERSARY OF sent to me by the chairman of the Opening service sites. TARPON SPRINGS, FL Day Program, Nattie Draughon. In just a few Mr. Speaker, adoption has been called the words it says something very meaningful loving option. I urge my colleagues to support HON. MICHAEL BILIRAKIS about the spirit of enterprise that is alive and this effort to help ensure that adoption does OF FLORIDA well in the Ninth Congressional District. It not become the forgotten option simply be­ IN THE HOUSE OF REPRESENTATIVES reads: cause of a lack of information. Thursday, March 5, 1987 The labor of our county residents from H.R. 1279 bygone days lives on today as our people Mr. BILIRAKIS. Mr. Speaker, I rise today to continue the labor which has given birth to Be it enacted by the Senate and House of inform my colleagues that this is a very spe­ this spectacular festival and county fair. Representatives of the United States of cial and busy time in the Ninth Congressional Hillsborough County has grown from small America in Congress assembled, That sec­ District. family-owned truck farms to a thriving tion lOOl(a) of the Public Health Service You see, the people of the Ninth District are multi-million dollar business of corporate­ Act <42 U.S.C. 300a(a)) is amended by insert­ owned farms, as well as numerous related ing after the first sentence the following in the midst of not one, but two centennial celebrations and the 52d Annual Strawberry agribusinesses, the largest being the straw­ new sentences: "Such projects may, in ac­ berry industry. cordance with applicable State law, offer Festival. So you can see that when I say adoption services. Any adoption services busy-I mean busy! Mr. Speaker, the people around Plant City, provided pursuant to such project shall be First, let me talk about the 1OOth anniversa­ FL-the center of the strawberry industry in nondiscriminatory as to race, color, religion, ry celebration of my hometown, Tarpon my district-have proven what can be or national origin.". Springs, FL. As you can well imagine, this is a achieved through dedication and hard work. very important occasion for me personally, They have built up a thriving agribusiness that doubly so since this is the 1OOth birthday cele­ is the "Pride of the County," this year's bration of the town where I was born and the theme, and are celebrating it with a festival fact that I have been named honorary chair­ that is 2 years past its golden anniversary and man of this event. going stronger than ev&r. This weekend the year-long grand celebra­ The people responsible for this are almost tion will begin and will include all the bells and too numerous to mention, but I do want to whistles such an occasion deserves-a last recognize J. Albert Miles, Jr., president of the train ride between Dunedin, FL and Tarpon Festival Board of Directors; Dr. Charles March 5, 1987 EXTENSIONS OF REMARKS 4961 Hinton, Roy Parke; Al Berry; and all those as­ prisoned. Thousands more have been sum­ compulsory teaching of Russian at the ex­ sociated with the festival. marily executed for their personal, political, or pense of native Lithuanian, the suppression As I said, you can see that this is a busy religious dissent. Grisly torture techniques and and discouragement of Lithuanian culture and time-and an important one. All of these cele­ gruesome methods of execution are regularly history, and the planned emigration of large brations from all corners of my district have at used to terrorize the public. These practices numbers of Russians to Lithuania and the least one thing in common: decent, hard-work­ violate all international laws and standards other Baltic countries. ing, caring individuals who share a pride in such as the International Covenant on Civil Mr. Speaker, to remember the birth of St. their accomplishments and a dream for an and Political Rights and the U.N. Declaration Casimir is to remember and never forget that even brighter future. Against Torture, both of which Iran supported. Lithuania is a sovereign nation with a long, I can honestly say that the enthusiasm, Unfortunately, human rights abuse is but proud history all its own. The United States pride and sense of history displayed by the one aspect of the ongoing tragedy in Iran. A must never recognize the incorporation of people of the Ninth Congressional District second and even more widespread form of Lithuania into the Soviet Empire. make it an honor and a privilege to represent disregard for the sanctity of human life, for in­ them in Congress. dividual freedoms and security, and for the rights of minors, is being perpetrated by the FAMILY FARM ACT PERSONAL EXPLANATION government of Ayatollah Khomeini. The gov­ ernment continues its stubborn insistence on HON. HON. AMORY HOUGHTON, JR. pursuing the Iran-Iraq War to the detriment OF and devastation of both nations. Not only IN THE HOUSE OF REPRESENTATIVES OF NEW YORK have hundreds of thousands of casualties re­ Thursday, March 5, 1987 IN THE HOUSE OF REPRESENTATIVES sulted, the prolongation of hostilities has re­ Thursday, March 5, 1987 sulted in massive displacement of populations Mr. JONTZ. Mr. Speaker, I am pleased to join today with Mr. GEPHARDT, and my col­ Mr. HOUGHTON. Mr. Speaker, due to a and refugees. As President Reagan pointed leagues, as an original cosponsor of the meeting earlier today with some young people out last week, the Khomeini government must Family Farm Act. There are few bills which the from my district who were here for the Close­ be held responsible for the protraction of hos­ Congress will consider during this session up Program, I missed the vote on the House tilities costing hundreds of thousands of lives, which will be more important to the family Resolution 109, the rule for H.R. 558. If I had many of them schoolchildren. farmer. been present on rollcall No. 18, I would have This belligerent attitude is equally worthy of My State of Indiana has not suffered losses voted "no." our unambiguous condemnation. Mr. Speaker, these activities are unacceptable to Congress, as great as some other Farm Belt States, the international human rights community, and such as Iowa. Yet our farmers are hurting, and HUMAN RIGHTS ABUSE IN IRAN most importantly to the citizens of Iran. I urge all indications are that the situation will my colleagues to join me in supporting all become much worse before it gets better. HON. CHRISTOPHER H. SMITH international efforts which pressure the Kho­ One recent survey in Indiana shows that OF NEW JERSEY meini government to come to its senses and about 30 percent of all farms are in serious fi­ IN THE HOUSE OF REPRESENTATIVES to negotiate an end to the bloodshed. nancial trouble, based on debt-asset ratios over 40 percent. Even worse, approximately Thursday, March 5, 1987 4 7 percent of larger farms with gross sales of Mr. SMITH of New Jersey. Mr. Speaker, ST. CASIMIR'S DAY-PATRON $40,000 per year are in similar difficulty. United States policy options with Iran have SAINT OF LITHUANIA The Family Farm Act represents a bold de­ been and will remain fundamental and vital parture from the current direction of our agri­ aspects of our foreign policy in the Middle HON. WILLIAM 0. LIPINSKI culture policy. If we are to preserve the family East. While Iran's geopolitical and strategic OF ILLINOIS farm, upon which so much of our rural econo­ importance, combined with its vast oil re­ IN THE HOUSE OF REPRESENTATIVES my depends, we must be willing to consider serves, make it a primary component of over­ these changes. all policy, the recent dealings with the Iranian Thursday, March 5, 1987 Government have brought the Islamic Repub­ Mr. LIPINSKI. Mr. Speaker, I rise today to lic of Iran to the forefront of public and politi­ pay tribute to the patron saint of Lithuania and THE EXPORT TRADING COMPA­ cal debate. to inform my fellow Members that yesterday, NY AMENDMENTS ACT OF 1987 As a member· of the House Foreign Affairs March 4, marked the 503d year of St. Casi­ <14)(F)(i)) is amended by striking Third World debt, are responsible for this slow "for purposes of exporting goods or services development of Export Trading Companies, produced in the United States" and insert­ THE MEDICARE AND MEDICAID but there are other factors which have dis­ ing "for purposes of exporting goods or serv­ PATIENT AND PROGRAM PRO­ couraged ETC development. Some are inher­ ices produced in the United States by that TECTION ACT OF 1987 ent in the act and others are due to regulatory company, its affiliates, or unaffiliated per­ interpretations by the Federal Reserve Board. sons,". The Export Trading Company Amendments (C) DEFINITION OF PRINCIPALLY ENGAGED IN HON. WILLIS D. GRADISON, JR. Act of 1987 addresses six of these problems. EXPORTING.-Section 4 by striking "and" at the end of clause Mr. GRADISON. Mr. Speaker, I am pleased cluding a survey of export management com­ (iii); panies and export trade associations, and the (3) by striking the period at the end of to be joined by my House colleagues, Messrs. progress made by ETC's. clause and inserting a semicolon; and WYDEN, STARK, WAXMAN, MADIGAN, and Second, clarify that bank-affiliated ETC's (4) by inserting after clause the fol­ others in introducing the Medicare and Medic­ lowing new clauses: aid Patient and Program Protection Act of may export their own services, or those of af­ "(v) an export trading company shall be filiates. 1987. treated as organized and operated principal­ This bill is designed to protect Medicare and Third, revise the method of calculation for ly for the purposes described in clause m if the 50 percent revenue test by counting third that company derives more then one-half of Medicaid beneficiaries from unfit doctors, hos­ party trade and countertrade as exports and its revenues in each consecutive five-year pitals and other health care providers. To extend the period for meeting the revenue period from- achieve the goal, this bill recodifies and test to 5 years. "(!) the export of goods or services pro­ strengthens the antifraud provisions of the Fourth, exempt transactions between a duced in the United States by that compa­ Social Security Act. bank and its ETC from collateral requirements ny, its affiliates, or unaffiliated persons, or A similar measure, H.R. 1868, was intro­ "(II) from facilitating the export of goods duced in the 99th Congress. That bill was re­ under section 23A of the Federal Reserve or services produced in the United States by Act, thereby restoring the original intent of the unaffiliated persons by providing one or ported favorably from the Ways and Means bill. more export trade services; and Committee and the Energy and Commerce Fifth, prohibit the Federal Reserve from im­ ", reve­ Committee. It was subsequently passed by posing a dollar limit on the amount of invento­ nues from third party trade, and the value the House, and reported favorably by the ry an ETC can maintain, except on a case-by­ of goods and services taken back by the Senate Finance Committee. Unfortunately, it case basis. export trading company as part of a coun­ was not considered on the Senate floor. Sixth, prohibits the Federal Reserve from tertrade transaction, shall be treated as H.R. 1444 is based on H.R. 1868. Incorpo­ disapproving a bank's proposed investment in export revenues.". rated in the new bill are modifications which (d) RELATIONS WITH AFFILIATES.-Section an ETC solely on the basis of an assets-to­ 23A of the Federal Reserve Act <12 were developed in discussions between the equity ratio unless greater than 25 to 1. U.S.C. 371c(d)) is amended- House and Senate at the conclusion of the I would urge my colleagues to review this <1) by striking "and" at the end of para­ 99th Congress. Therefore, the bill represents legislation and would welcome their support. graph <6>; a consensus on the issues covered by the H.R. 1431 <2> by striking the period at the end of measure. I am happy to report that a compan­ A bill to amend the Export Trading Compa­ paragraph <7> and inserting"; and"; and ion bill is being introduced tomorrow in the ny Act of 1982, the Bank Holding Compa­ <3> by adding at the end the following: Senate by the distinguished Senator from ny Act of 1956, and the Federal Reserve "(8) transactions with an affiliate which is Pennsylvania [Mr. HEINZ] his colleague Sena­ an export trading company, as defined in Act with respect to export trading compa­ tor GLENN and other Members of the Senate. nies section 4<14><14> and , respectively; and vorable attention in its development, I know "Not later than one year after the date of <2> by inserting after clause (iv) the fol­ the enactment of this section and annually lowing: that its many sponsors, from both sides of the thereafter, the Secretary of Commerce shall The Board may not impose, by regula­ aisle and from both Houses, join me in en­ submit a report to the Congress on the ac­ tion, a dollar limit on the amount of goods couraging all of our colleagues to consider ex­ tivities of the Department of Commerce to which export trading companies may main­ pedited action and swift passage. promote and encourage the formation of tain in inventory; except that the Board I am particularly pleased that the chairman export trade associations and export trading may impose, by order, a dollar limit on the of the Health Subcommittees of both the companies. The report shall include a amount of goods which a particular export Ways and Means Committee and the Energy survey of the activities of export manage­ trading company may maintain in inventory and Commerce Committee, Messrs. STARK ment companies and export trade associa­ after such company has been operating for tions, as well as an analysis of the operating a reasonable period of time if, under the and WAXMAN, are joining me this year in spon­ experiences of those export trading compa­ particular facts and circumstances, it finds soring the bill. I am equally gratified to be nies established pursuant to this Act. The that such limit is necessary to prevent risks joined by my colleague from Oregon [Mr. report shall not contain any information that would affect the financial or manageri- WYDEN] who spent a great deal of time on the March 5, 1987 EXTENSIONS OF REMARKS 4963 development of this legislation in the 99th care providers who have been convicted of Suspended or barred from medical practice Congress. first, defrauding other Federal, State or local due to questions of professional competence, Finally, I should add that the bill stands as a programs; second, patient neglect or abuse; professional conduct or financial integrity; tribute to a former Member of this body, Hon. or third, the unlawful manufacture, distribution, Found to have submitted excessive Henson Moore of . Mr. Moore origi­ or dispensing of controlled substances. These changes or claims; nated the legislation in the 98th Congress and loopholes require congressional attention, and Committed fraud, made kickbacks or other guided it through the House in the 99th Con­ they will get it through the Medicare and Med­ prohibited acts; gress. The bill reflects his long-time commit­ icaid Patient and Program Protection Act of Found to have failed to disclose required ment to improving the management of the 1987. ownership information; The Inspector General has testified that in Medicare and Medicaid Programs and the pro- . Found to have failed to supply requested in­ tection of its beneficiaries. He devoted more 1983 and 1984, he found 84 cases involving formation on subcontractors and suppliers; effort to the cause than any other Member of physicians who had their licenses revoked due Found to have failed to supply certain pay­ the body and I am pleased to have an oppor­ to drug violations, gross negligence or profes­ tunity to carry on in his behalf. sional incompetence and yet could still charge ment information; Found to have failed to grant immediate NEED FOR THE LEGISLATION the Medicare and Medicaid Programs for serv­ access to the Secretary, State agency, In­ The Medicare and Medicaid Programs, ices rendered. since their inception in 1965, have provided These cases paint a worrisome picture. Evi­ spector General, or State Medicaid fraud con­ needed health insurance coverage for the Na­ dence indicates they may reflect only the tip trol unit for the purpose of performing their tion's elderly, disabled and categorically indi­ of an iceberg. Legislation is necessary to pro­ statutory functions; gent. These programs account for almost tect the program beneficiaries from health Found to have failed-in the case of a hos­ $120 billion in combined Federal and State care providers such as these cjted in the In­ pital-to take corrective action required by the spending. In any endeavor of such magnitude, spector General's 1985 testimony. HHS Secretary-based on information sup­ it is inevitable that a few participants will In Indiana, a physician was found guilty of plied by a peer review organization-to pre­ abuse the worthy purpose. 27 counts of violating drug laws. vent or correct inappropriate admissions or HHS, through the Office of its Inspector In Massachusetts, a physician was convict­ practice patterns; and General, has been given authority by the Con­ ed for assault and battery on a 14-year-old Found to have defaulted on repayment of gress to sanction those who abuse and de­ patient. scholarship obligations or loans in connection fraud the Medicare and Medicaid Programs. In Louisiana, a physician was convicted of with health professions education. The Department has used this authority effec­ 15 felony counts including bank fraud, wire In addition to providing the Secretary with fraud, false entries in books and records, and tively. But, loopholes in the law remain which this increased authority, the bill makes a conspiracy. require congressional attention. number of improvements in the Secretary's In 1972, the Secretary of HHS-then In Pennsylvania, a physician was convicted of grand theft and transportation of stolen existing authority regarding civil monetary pen­ HEW-was granted the authority to exclude alties [CMP]. Under current law, the Secretary from participation in the Medicare Program in­ goods. is empowered to impose a civil money penalty dividuals who: Now, 2 years later, the HHS Inspector re­ First, submit false claims; mains unable to sanction the organizations of up to $2,000 for fraudulent claims under Second, charge Medicare substantially more which these types of individuals may own or Medicare, to impose an assessment of twice than their customary charge; or control, or take administrative action where the amount of the fraudulent claim, and to bar Third, provide services substantially in there have been kickbacks, or exclude from from participation persons determined to have excess of patients' needs or of a quality which participation in the programs individuals who filed a fraudulent claim. fails to meet professionally recognized stand­ have lost their licenses to practice in one This bill also would correct or clarify some ards of medical care. State and moved to another to practice. apparent oversights in drafting the original Five years later, in the 1977 "Medicare and On this last point alone, a Government Ac­ statute. It would provide for: Medicaid antifraud and abuse amendments," couting Office [GAO] study found that of 328 Unified judicial review of the imposition of Congress granted the Secretary authority for practitioners who had been sanctioned by monetary penalties and Medicare and Medic­ the mandatory suspension from participation State licensing boards in Michigan, Ohio and aid suspensions imposed under the CMP stat­ in both Medicare and Medicaid those individ­ Pennsylvania, 122 held licenses in at least ute; uals, who have been convicted of criminal of­ one other State. As many as 100 of these Subpoena authority in all CMP hearings; State-sanctioned practitioners may have relo­ fenses related to their participation in the pro­ Increased State share of CMP recoveries to cated and continued to participate in the Med­ grams. The Inspector General of HHS has encourage State investigations and referral of used these sanctions. In fiscal year 1986 icare and/or Medicaid Programs. The GAPS in the law, which allow such Medicaid fraud cases; alone, 412 health care providers were sanc­ Clarification that the scope of the CMP stat­ tioned. practitioners to continue to treat Medicare and ute includes double billing and false medical The other weapons available to the Inspec­ Medicaid patients, should not be tolerated. tor General in fighting abuse are civil and They endanger not only the health and safety credentials; monetary penalties [CMP). These prerogatives of Medicare and Medicaid patients but the A 6-year statute of limitation for CMP ac­ were given to HHS by Congress in 1981. They fiscal integrity of both programs. tions; and, provide an administrative mechanism for the BILL DESCRIPTION Authority to seek an injunction in U.S. dis­ imposition of stiff money penalties and as­ The bill would require that health care provi­ trict court to preserve the assets of a CMP re­ sessments for health care providers or other sions convicted of crimes related to their par­ spondent, where that respondent may dissi­ individuals who file false or otherwise improp­ ticipation in the Medicare or Medicaid Pro­ pate or conceal those assets. er claims for payment by the Medicare or grams, or related to the neglect or abuse of Finally, the bill would consolidate into one Medicaid Programs. Since 1983, more than patients, be barred from these programs for at title of the Social Security Act-title XI-all of $31 million has been recovered by the HHS least 5 years. the penalty provisions currently contained in Inspector General's Office from unscrupulous Further, the bill would provide the Secretary titles XVIII and XIX of the act. individuals and organizations under this provi­ of HHS with authority to exclude from Medi­ A detailed summary of the bill follows my sion. care and Medicaid those individuals or entities remarks. The antifraud and abuse record of HHS is who have been: In conclusion, Mr. Speaker, let me reiterate to be commended. However, there remain se­ Convicted of fraud against any Federal, that this legislation is needed now to provide rious gaps in the authority granted to the In­ State, or locally financed health care program; the additional authority necessary to curtail spector General preventing him from eliminat­ Convicted of interfering with the investiga­ fraud and abuse against our governmental ing "bad actors" from participation in the tion of health care fraud; health programs and assure quality services Medicare and Medicaid Programs. For exam­ Convicted of unlawfully manufacturing, dis­ to the Nation's elderly and poor. ple, the Inspector General lacks the power to tributing, prescribing, or dispensing a con­ bar from the Medicaid programs those health trolled substance; 4964 EXTENSIONS OF REMARKS March 5, 1987 SECTION-BY-SECTION ANALYSIS: MEDICARE AND The Secretary would be required to notify SEC. 7. EXCLUSION UNDER THE MEDICAID PRO· MEDICAID PATIENT AND PROGRAM PROTEC­ state agencies, programs, and licensing au­ GRAM TION ACT thorities of each exclusion and its duration, States would be allowed to exclude indi­ SECTION 1 and request licensing authorities to conduct viduals or entities for any reason which the The bill is designed to protect Medicare appropriate investigations and impose sanc­ Secretary could use to exclude parties from and Medicaid beneficiaries from unfit tions, and report back on these activities. the Medicare program. health care practitioners and to strengthen State programs would be required to con­ In order to receive federal payments for the anti-fraud provisions of the Social Secu­ form to the exclusion periods used by the HMOs, states would be required to exclude rity Act. Medicare program, unless a waiver was ap­ parties that could be excluded by reason of SEC. 2. EXCLUSION FROM MEDICARE AND STATE proved by the Secretary. the owners' or managers' conviction of cer­ HEALTH CARE PROGRAMS Excluded parties could apply for reinstate­ tain crimes or by reason of their having a The bill requires the Secretary to exclude ment at the end of the initial exclusion substantial contractual relationship with from Medicare and to direct States to ex­ period and at other times, as provided for by parties convicted of such crimes. clude from state health care programs indi­ the Secretary. The Secretary would be re­ SEC. 8. MISCELLANOUS AND CONFORMING AMEND­ viduals or entities convicted of criminal of­ quired to notify state agencies and programs MENTS fenses related to the delivery of health care of all terminations of exclusions. services or of criminal offenses related to No payments under Medicare or state patient neglect or abuse