5574 EXTENSIONS OF REMARKS March 19, 1986 EXTENSIONS OF REMARKS FAMILY Even though she's retiring as a foster coaches Tom Brown, Robert Kirby, Jeff Ditt­ mother, Mrs. Hartman is not giving up the man, Jim Calvin, Kevin Angelin and all of your three babies she cares for during the day. support staff-I am very proud of you. Follow­ HON. JIM KOLBE All three are under 1 year old, and that is ing is the account of the game as reported in OF ARIZONA the way she likes it. "Let someone else potty train them," she said. the New York Times, Sunday, March 16, IN THE HOUSE OF REPRESENTATIVES But what about colic and all the other 1986: Wednesday, March 19, 1986 well-known hazards presented by having a [From the New York Times, Mar. 16, 19861 very small person in the house? Mrs. Hart­ Mr. KOLBE. Mr. Speaker, an article appear­ man admitted that some of the babies have NEWELL Ptrrs THE IRISH AWAY AND HIS ing in the Tucson Citizen told the story of a been hearty criers and some have kept her SCHOOL ON THE MAP couple in their early sixty's who have been awake nights. She did acknowledge that to the second round of the FAMILY Hartman said. "But things do have a way of Midwest Regional on Sunday against North Most families have brought a baby home working out. Nancy was already an infant Carolina State, whose coach, Jim Valvano, from the hospital once, twice, maybe even a foster parent in Flagstaff. When she moved says: "You don't like to play a team that few times. to Tucson, I knew I could retire." has a hyphen. They're all 'cause' games. Delores and Leonard Hartman have Mrs. Hartman had high praise for the Ari­ Those teams have a mission." brought a newborn into their home hun­ zona Children's Home Association, saying it Indeed, the Trojans' coach, Mike Newell, dreds of times, as foster parents since 1966. does an excellent job of matching infants concedes that the only reason he left as an After 20 years with babies in the house, with adoptive parents. assistant at powerful Oklahoma was because they're retiring. She also had a little advice for mothers the new chancellor at Arkansas-Little Rock But if babies waiting for adoption could trying to decide whether to give their babies told him he wanted to put the school on the somehow choose someone to care for them, llP for adoption. "Some people have a bad map. the Hartmans would get a lot of votes. idea about foster parents, but we love babies "We had guys not going to class," Newell "I just love babies," Mrs. Hartman said. and we take good care of them. If a girl said. "I kicked four guys off the team. A lot "When my youngest child started school, I can't take care of her baby, it's the right of people roasted me for that." knew some people at church who were doing thing to do." · His first season, 1984-85, produced a 17-13 foster care for the Arizona Children's Home But of herself she said, "This has just record following a 14-15 mark. This season, Association, and that's how I got into it. But been my llfe. I started babysitting when I the team is 22-10, winner 18 of its last 19 mostly I just love babies." was 11. There seems to be a need I have games, and 9 in a row, following a 4-9 start. The couple's first baby had red hair and that nothing fills except a tiny baby." And, says Newell: "The average grades of was named Tommy. "I'll never forget our our players now is 2.3. When I got here, it first one-he was a little redheaded baby. was something like a 0.8." My husband has red hair, and he'd always DAVID WHIPPED GOLIATH As Newell was talking this morning in a wanted a redheaded baby. Well, now we had hotel coffee shop, Chancellor James ("Call him." me Jim") Young walked over to talk. Over the years, 233 babies, all under age 2, HON. TOMMY ROBINSON "I was telling Mike at halftime in the con­ have stayed with the Hartmans until OF ARKANSAS ference championship: 'I've taken you this moving into their adoptive parents' homes. IN THE HOUSE OF REPRESENTATIVES far. The rest is up to you,'" Young said. The longest any has stayed has been eight Wednesday, March 19, 1986 Young, who also has finished his second months, when there were medical problems year at the school, laughed, but said, "We that held up adoption. Most have stayed Mr. ROBINSON. Mr. Speaker, last Friday on brought him in for the program." only a few days or weeks. a snowy evening in Minneapolis I was fortu­ The conference is called the Trans Ameri­ No matter how short the stay, though, nate enough to witness a miracle. Before can Athletic Conference, and its schools are they've been important to Mrs. Hartman. "I nearly 30,000 tans David whipped Goliath. My little known except regionally. took a picture when I got the baby and a alma mater, the University of Arkansas at "If U-LR is ever to get known-it's sad but picture when they went home. I recorded true-it'll be through the athletic depart­ their weights and I gave every baby a Little Rock, in their first ever appearance in ment," said Newell. name." She also recorded the names the the NCAA tournament and their first ever · He seemed hardly surprised by the victory babies' adoptive parents gave them, but game against a top 1O team, mustered all of over 10th-ranked Notre Dame, which had some adoptive parents would ask the Hart­ their poise and talent to beat Notre Dame. I just finished its finest regular season in 12 mans what name they had chosen and know that it was a disappointment to the years with a 23-5 mark. In fact, to hear would keep it. Fighting Irish and the loyal fans of that great Newell tell it, he has a team verging on a na­ Eight photo albums are filled with memo­ institution and sports powerhouse on the eve tional powerhouse. It just needed a victory rabilia from each baby's time with the Hart­ of St. Patrick's weekend, but it was a great such as this to put it into the limelight. mans. "I enjoy looking at them. Also, some­ "I was more concerned that we'd play a times I even hear from some of them," Mrs. day for UALR, the city of Little Rock, Coach Louisville or an N.C. State because of their Hartman said. Mike Newell, his team and our alums. Coach size and the talent of their athletes,'' he The Hartmans reared four children of Newell, Paul Springer, Myron Jackson, Pete said. "Notre Dame is predictable. You can their own and now have five grandchildren. Myers, Michael Clarke, Paris McCurty, Ken put a game plan together, and they're not Hartman is 62 and his wife is 61. Worthy, Reggie Smith, Curtis Kidd, assistant going to vary."

e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. March 19, 1986 EXTENSIONS OF REMARKS 5575 But he also needed some coaching tricks. plaints about the cost and availability of liabil­ from the park because someone who was at­ His team is not very tall-the taller guard is ity insurance. It is a problem that will not go tacked by a bear on one of those trails is 6 foot 3 inches, his forwards are 6-6, the away and which will continue to grow unless it suing for millions. center is 6-7. The Trojans needed to halt is put into perspective. The general public and Doctors in the United States hardly dare David Rivers, the dervish-like whirler who practice some areas of medicine because of makes Notre Dame go. The Trojans also elected officials have to realize how we have the cost of malpractice insurance and there had to avoid foul trouble against one of the reached the point where businesses are clos­ are communities where a woman can't have country's top free-throw-shooting teams. ing or restricting their operations due to the a baby delivered because obstetricians have "We're a real good defensive team in man­ cost of obtaining liability coverage. been forced out of business by the high to-man coverage," Newell said, "but I felt in A recent column by Andy Rooney does price of malpractice insurance. Even lawyers this game if we went to man coverage early indeed put the liability insurance crisis into a and insurance companies have been put out we'd put Notre Dame in foul situations." perspective that should drive home to every of business by malpractice suits. The zone included double-teaming Rivers, In hundreds of little towns, taxpayers are forcing him to shoot from outside, a weak­ American how we have arrived at the point where we find ourselves today. I commend it putting out more money this year for insur­ ness. ance premiums than they are for police and "I looked at his field-goal stats and saw he to the attention of my colleagues. fire protection. There's something wrong was about a 44-percent shooter," Newell WE ALL PAY FOR THE FLIMSY ASSURANCE OF there. said, "which tells me he's not an outstand­ INSURANCE Jurors are handing out million-dollar ing outside shot." been named an unindicted co-conspirator. 5576 EXTENSIONS OF REMARKS March 19, 1986 The case of the University Baptist Church ment agents joined churches as worshiper8 WESTERN DOUBT, SOVIET is not unusual. Similar instances of burgla­ to spy. CERTAINTY ries in sanctuary churches are being report­ Baird and her husband, Peter for the burglaries. "Any government agent nothing of burglarizing places to earn their keep as informers-to infiltrate churches The arrival in Nicaragua last week of a doing that is jeopardizing his whole career," Cuban general who fought against Israel in he says. "Let me suggest another scenario: elsewhere? Leaders of the Old Cambridge Baptist Church believe they have proof that the 1973 Yorn Kippur War is the launching they Cthe sanctuary workers] are doing it pad for a new political effort to win the themselves, all over the country." the FBI has planted a spy in their midst. contra-aid vote in Congress on grounds that The INS is understandably touchy now They also suspect that the spying may be a vote against the contras is a vote against that it is public knowledge that the agency related in some way to the burglaries. In a Israel. has hired informers to infiltrate churches in letter dated November 11, 1985, the FBI de­ Brig. Gen. Nestor Lopez, the Soviet­ search of undocumented aliens. clined to honor Freedom of Information re­ trained Cuban commander who is just now Accusing the INS of indiscriminate spying quest for its files on the church. Disclosure making his debut in Nicaragua, commanded on churches, Phoenix lawyer Sara Baird of the files, the FBI wrote Michael armored forces on the Syrian front against says, "This has never before happened in Rattner-an attorney with Center for Con­ Israel and then stayed there for two more American history . . . . I researched that stitutional Rights, which has been keeping years. His move to Managua buttresses the thoroughly going back to the underground track of the burglaries-might "reveal the administration's charge that a seamless web railroad." Ever at the height of the anti­ identity of an individual who has furnished of left-wing forces now spans the globe, with Vietnam war movement, she contends, there information to the FBI under confidential the capability of pinpointing its power were suspicions but no evidence that govern- circumstances." where and when needed. March 19, 1986 EXTENSIONS OF REMARKS 5577 According to that theory, Lopez's battle form that feat with impunity much longer. genuine contra bands, and in camp at night experience in one theater of operations Levine acknowledged to us that the appar­ they would slit the throats of their new after another shows the capability of ent contradiction made him "uncomfort­ comrades-in-arms. The literature on com­ moving non-Soviet communist forces led by able." But he said "the tail should not wag munist military campaigns since World War Soviet-trained officers into combat almost the dog"-that giving Israel what it asks is II alludes to similar deceptions, but seldom anywhere. The troops that fight on the not the same as supplying arms to the anti­ has anyone come forth claiming firsthand Honduran border today may return to the Sandinista contras. knowledge of such events in progress. Yet Israeli border tomorrow. Gingrich will try to change that, .. 'lising Mr. Baldizon's revelations have hardly Republican supporters of anticommunist the political cost of opposing the contras. caused a ripple in the public debate. guerrillas in Nicaragua believe there is polit­ The arrival in Managua of the Cuban gener­ Mr. Baldizon's charges could of course be ical advantage to be taken of this, particu­ al with his battle ribbons from the 3yrian spurious, even though some of his other larly with many Democratic congressmen front helps his cause. claims, as Mr. Ledeen reports, have been who vote consistently for aid to Israel but checked against the findings of human­ against the contras. Rep. Newt Gingrich CFrom the Wall Street Journal, Mar. 19, rights groups. He has named names, dates plans to get a group of coleagues together 1986] and places. for trips to New York, Chicago and Miami­ INTELLIGENCE FAILURE If his charges are true, the current debate all major centers of Jewish population-to Tomorrow the House will vote on Presi­ about Nicaragua has been just a school­ deliver this message: a "no" vote on aid to dent Reagan's request for military aid to child's exercise, because the "facts" that the contras is a "yes" vote for the enemies the contras in Nicaragua. It will be a somber people think they know have been manipu­ of Israel who fought in the Yorn Kippur day whichever way the vote goes. The past lated with a deliberateness that we literally War on the Arab side. few weeks' debate about Central America cannot imagine. No one has to believe Mr. Lopez was one of them. Indeed, at age 44 has unearthed a vast amount of ignorance Baldizon, but it is a remarkable phenome­ he typifies the Cuban communist profes­ and arrogance about how the world works non when, in the midst of a roaring debate, sional who has made his mark in three thea­ and what Americans must do to defend his charges are treated as if they were never ters of war. A youthful fighter against the themselves and their values. made. This failing is part of a bigger one. Batista regime in Cuba, he was trained at A couple of weeks ago CIA Director Wil­ Americans are truly innocent. There are armor school in the Soviet Union. When the liam Casey said that Nicaragua's Sandinista some kinds of evil that we simply cannot be­ ill-fated freedom fighters landed at the Bay government was waging a disinformation lieve, especially when disbelief is convenient of Pigs in the spring of 1961, Lopez com­ campaign aimed at the congressmen who for us. manded one of the first Fidel Castro units would soon vote on contra aid. The White We are used to open political debate. We to meet them. House said it would release a declassified hate clandestine manipulation because it In 1973, he was sent to the Mideast in version of the details. robs us of the reliable information that command of an armored regiment fighting From the Hill came the roar of congress­ makes open debate possible. When we are with the Syrians against Israel along the men outraged at the suggestion that they told that such manipulation exists, we des­ Golan Heights, staying there throughout could be duped by a foreign government. perately try to avoid knowing it, so that we sporadic cleanup fighting that lasted into Then the Washington Post sprang forward will not have to face its complications. May 1974. All told, 3,000 Cubans were esti­ with a scoop: Mr. Casey's "disinformation It took a long time to convince people of mated to have been in Syria-including MiG campaign" was actually just some consult­ the reality of the Holocaust. It took a long and helicopter pilots. ants to the Sandinistas proposing a publici­ time for people to believe the horror of the According to The Economists's March ty blitz with "language and tactics similar to Khmer Rouge. So far the United States has 1978 Foreign Report, Cuban tank crews those of many other legislative lobbying been lucky, a.,d has made up for such fail­ commanded by Lopez suffered 180 dead and campaigns." ures of intelligence. But no one is lucky for­ 250 wounded in the Yorn Kippur war. Less You get the clever message? The Sandi­ ever, and persisting in this self-satisfied ig­ than a year later, in March 1975, the nista campaign is a legitimate lobbying norance could sooner or later be fatal. Cubans were dispatched to Angola to battle effort. It is the administration's attempt to Jonas Savimbi's freedom fighters following discredit it that constitutes the deception. Portugal's departure. Lopez was put in com­ The White House decided not to release its FLOOD CONTROL PROJECT mand of a Cuban armored division. information after all. SUPPORTED Thus, while Washington sends one of its After a while, you grow numb. Last night, veteran peace-seeking envoys, Ambassador public television's documentary program Philip Habib, to Central America, Havana "Frontline" scheduled a pre-vote film about HON. JOSEPH M. GAYDOS sends one of its outstanding combat veter­ the contras titled "Who's Running This ans to Managua. War?" The production had so much political OF PENNSYLVANIA The Nicaraguan government's pleas for spin on it that it almost achieved orbit. In IN THE HOUSE OF REPRESENTATIVES peace, echoed by Reagan critics in Washing­ the film, contra leaders were Somocistas. Wednesday, March 19, 1986 ton, contrast with such warlike moves. Co­ The troops were bloodthirsty and ineffectu­ mandante Emmet Lang, the Nicaraguan air al. Their U.S. supporters were bizarre right­ Mr. GAYDOS. Mr. Speaker, the Senate is force commander in chief, is on a secret mis­ wingers. expected to consider and pass, according to sion to Moscow seeking a favorable sign We have gotten used to this stuff, but re­ published reports, its version of a water re­ from the Soviets-such as the loan of MiG cently there has been a fresh shock. As Mi­ sources development bill that includes authori­ fighters, or perhaps the symbolic landing of chael Ledeen details nearby, Alvaro Baldi­ zation for the construction of a flood control a squadron of Bear bombers. zon is a former Sandinista official who de­ U.S. experts very much doubt the Sandi­ fected and came to this country eight project at Rowlesburg, WV. nistas will get any such stakes-raising signal months ago. Before his defection he served This facility, if built, would control flooding from the Soviets. But even without the Rus­ as chief investigator to the minister of the along both the Cheat River in West Virginia sians, internationalization of the communist interior, Tomas Borge. Mr. Baldizon says he a:id the Monongahela River in western Penn­ struggle in Nicaragua is well along. investigated, among other things, interna­ sylvania. The globe-trotting Gen. Lopez shows what tional charges of human-rights abuse by the Ironically, the importance of this structure to military analyst Edward N. Luttwak meant Sandinistas, to help the government answer the people who live and the communities when he wrote that "the pieces are on the them. He saw some of the innermost work­ which are located along the banks of these chessboard"-in the Middle East and else­ ings of the regime. where. In the United States Mr. Baldizon has two rivers was underscored at the very time Tying Israel and the contras together po­ been telling his story. Each new question the House was passing its water resources litically is not all that easy. Formidable asked of him elicits more tales of murder, development bill that deauthorized the Democratic spokesmen in foreign affairs, in­ terror and deception. A couple of weeks ago Rowlesburg project. cluding Rep. Mel Levine of California, Mr. Baldizon, answering one question, men­ That occurred during the first week of last chairman of the House Democratic task tioned that he had direct knowledge of San­ November, when the Cheat and "Mon" Rivers force on Central America, and Rep. Stephen dinista soldiers disguising themselves as con­ were wreaking havoc in the worst flooding in­ J. Solarz of New York, a senior member of tras and committing atrocities in the con­ cident in decades. Several lives were lost, the House Foreign Affairs Committee, sup­ tras' name. They were specially trained in port Israel and oppose the contras with East Germany. One group of them, said Mr. more than 2,800 families were severely im­ nearly equal passion. Baldizon, posed as counterrevolutionary pacted by the floodwaters, nearly 2,600 Gingrich and his colleagues will try to peasants, killing Sandinista collaborators to homes were destroyed or damaged, real prop­ convince them they will not be able to per- prove their authenticity. They would Join erty damage exceeded $36 million while the 5578 EXTENSIONS OF REMARKS March 19, 1986 economic loss has been calculated in excess Be it further Resolved, that the Directors School; Nathan Streeter, Howe Military Acad­ of $21 million. of the Westmoreland Conservation District emy; Kent Strock, Hamilton Community As a result of that tragic event, individuals petitions the Congress of the United States Schools; Leah Taylor, New Haven High to appropriate the necessary funds now esti­ and groups, private citizens as well as elected mated at 400 million dollars to construct the School; Timothy Tuggle, Woodlan High officials on the local, county, State, and Fed­ authorized Rowlesburg Lake Flood Protec­ School; Laura Waksman, Norwell High School; eral level, are urging the Congress to reau­ tion Project. Said projects construction will and special thanks to chaperones James and thorize the construction of the Rowlesburg substantially reduce flood damage and loss Marda Hofman of Huntington and Delain flood control project. of life to the citizens of Pennsylvania and Wright of Fort Wayne. We, in the House, will have that chance West Virginia who live in the Monongahela Each year, every high school in my district when conferees are named to work out a River Watershed. Said construction will also has the option of selecting one student to par­ compromise between our version and the help protect and promote this vital industri­ ticipate in this program. A nonpartisan board Senate's version of the water resources de­ al region that is now experiencing severe economic dislocation. of directors chooses the participant out of nu­ velopment bill. Be it further Resolved that copies of this merous applicants. I wish to congratulz..d At this point, Mr. Speaker, I would like to Resolution be sent to U.S. Senators H. John these students and commend them on their insert the text of a formal resolution recently Heinz and Arlen Specter and U.S. Congress­ enthusiasm. Throughout this week, they will adopted by the Westmoreland Conservation men John P. Murtha, Joseph M. Gaydos, have occasion to view the Government in District in western Pennsylvania. I urge my Joseph P. Kolter and Governors Richard D. action by observing many facets of the demo­ colleagues to read it and, when the time Thornburgh of Pennsylvania and Arch A. cratic process. comes, support our efforts to build a facility to Moore, Jr. of West Virginia. My special thanks to Senators RICHARD Adopted the 26th day of February, 1986 in protect the lives and properties of those citi­ LUGAR and DAN QUAYLE and my colleagues zens of Pennsylvania and West Virginia who Greensburg, Pennsylvania. For the Westmoreland Conservation Dis­ BUDDY ROEMER, DALE KILDEE, MICKEY live in the Monongahela River watershed. trict Board of Directors LELAND, JAN MEYERS, JACK FIELDS, and BUD RESOLUTION-ROWLESBURG LAKE PROJECT J. ROY HOUSTON, HILLIS for taking time from their busy sched­ Whereas, the Omnibus Flood Control Act Chairman for the Board of Directors. ules to speak to these young people. was passed by the U.S. Congress in June Mr. Speaker, I believe that the Congression­ 1936; and al Student Program provides an excellent op­ Whereas, the United States Government WELCOME TO FOURTH DIS­ portunity to these outstanding young men and adopted a federal policy with respect to the TRICT CONGRESSIONAL S TU- women to explore Washington, DC, and learn control of floods; and DENT PROGRAM Whereas, the U.S. Army Corps of Engi­ more about how our Government works. They neers has been delegated the responsibility will be able to visit the historic sites in Wash­ for detenning the need and construction of HON. DAN COATS ington as well as observe the people who flood control projects for the purpose of re­ OF serve our country. I hope that the participation ducing damage caused by flooding. IN THE HOUSE OF REPRESENTATIVES in this week's progr.am will one day encourage Whereas, Stonewall Jackson Lake and Wednesday, March 19, 1986 these students to become active in govern­ Rowlesburg Lake flood control projects ment and civic service. were authorized by Congress following the Mr. COATS. Mr. Speaker, it is my privilege devastating flood events along the Monon­ Again, it is with delight that I welcome these to welcome the following members of the very special Hoosiers to Washington. gahela River in 1952, 1967, 1972, and 1979; Fourth District Congressional Student Program and Whereas, construction started on Stone­ from Indiana to Washington, DC, this week: wall Jackson in July of 1983 at a cost of 200 Renee Atkison, Lakeland High School; Mat­ OUR POSTAL SERVICE million dollars and is scheduled to be placed thew Breman, Elmhust High School; Michelle in operation in late 1986; and Buckmaster, Jay County High School; Cather­ Whereas, the Rowlesburg Lake project ine Carey, Paul Harding High School; Mary HON. ROBERT GARCIA which would have provided two to three Davis, Westview High School; Shelly Dehner, OF NEW YORK times as much flood protection as Stonewall Central Noble High School; Jeffrey Dotterer, IN THE HOUSE OF REPRESENTATIVES Jackson Lake was estimated to cost 233 mil­ Bluffton High School; Lisa Eickhoff, Huntington lion in 1976 was dropped to an inactive Wednesday, March 19, 1986 status; and North High School: Andrea Emberlin, Black­ Whereas, the flood that occurred on No­ hawk Christian School; Melissa Evans, Grace Mr. GARCIA. Mr. Speaker, we have become vember 5, 1985 caused extensive damage and Baptist School; Mart~ Gates, Columbia City so accustomed to the service provided by the loss of life that devastated the communities Joint High School; Melissa Gehl, DeKalb High U.S. Postal Service that too many times we of Rowlesburg and Albright in the state of School; Christine Gulish, Whitko High School; take the service for granted. Moreover, the West Virginia and the "Mon" River commu­ Pamala Hamman, DeKalb Eastern High Postal Service is too often subject to unde­ nities in Allegheny, Fayette, Green, Somer­ School; Amy Haugk, Bellmont High School; served criticisms. But every day there are set, Washington, and Westmoreland coun­ Holly Hoffman, South Adams High School; thousands of postal employees who faithfully ties in the Commonwealth of Pennsylvania; carry out their duties so that our Nation can and Krista Hull, East Noble High School; Joseph Whereas, several lives were lost, 2,822 Jereb, ; Matthew John­ run a little more smoothly. families were severly impacted by the flood­ son, ; Jana Kiess, I would like to take this opportunity to say ing, 2,594 homes were destroyed or damaged Heritage High School; Tammy Kingery, South­ that we should be proud of our Nation's in the six Pennsylvania counties; and ern Wells High School; John Kiningham, Postal Service. Recently, the Washington Post Whereas, real property damage exceeded Homestead High School; Scott Novak, Fre­ conducted an informal survey on how long it 36 million dollars in the region and the mont High School; Michael Patterson, Snider takes for mail to be delivered from one place upper pool of the Monongahela River at High School; .Karla Raines, Fort Wayne Chris­ to another. The following is an article (Wash­ Maxwell Lock and Dam was closed to ship­ ington Post, March 18, 1986) which describes ping for 42 days status of the Rowlesburg Lake project locat­ School; Allen Schwartz, Leo Junior/Senior ed in the West Virginia section of the Mon­ High School; Kacy Shafer, Garrett High Once a letter is placed in a mailbox, it's in ongahela River Watershed changed from the care of the U.S. Postal Service, the gar­ the inactive to the active status. Said status School; Timothy Sheppard, South Side High gantuan organization <765,666 employees, change will permit the resumption of stud­ School; Stephen Sink, Carroll High School; 39,327 post offices and stations> that last ies on the Rowlesburg Lake Project that Julie Smith, Adams Central High School; Tom year confronted rain, heat and gloom of could lead to it's construction. Stockwell, Prairie Heights Community High night to deliver 140 billion pieces of mail. March 19, 1986 EXTENSIONS OF REMARKS 5579 How effective are the U.S. mails? The We all know of the attacks on the Jewish therefore urge that, in the interests of free­ Washington Post conducted an informal community during the first years of Sandinista dom, democracy and our own security, you survey to answer this question, and the ac­ rule: The Firebombing of Managua's syna­ support the administration's request for aid companying map illustrates the results. gogue, the seizing of Jewish-owned property, to the anti-Sandinista resistence. Letters were deposited in local mailboxes Sincerely, at noon in mid-February in seven cities the growing anti-Semitic print. Signed (in formation> 1 around the nation and sent to The Post in Yet, little attention has been given to the Max M. Fisher, former chairman, United Washington. Letters were mailed simulta­ ties between the Sandinistas and the PLO's Jewish Appeal. neously from the District of Columbia to Yasir Arafat and Libya's Muammar Qadhafi. Morris Abram, attorney, New York, NY. the same seven cities. None of the letters Libya has given $400 million in military aid to David Bar Illan, New York, NY. was lost or dam.aged. All arrived within four Nicaragua as well as assistance in the training Abel E. Berland, Chicago, Ill. days, despite the fact that February is of their political police. The cause of the PLO Julius Berman, former chairman, Confer­ second only to the weeks around Christmas has been welcomed as the "cause of the ence of Presidents of Major Jewish Organi­ as a high-volume mailing period. Sandinistas." Managua has become a terrorist zations. In each case, both a typewritten and a Samuel H. Dresner, rabbi, Riverdale, NY. handwritten envelope were mailed, to test haven. Samuel Eisenstat, New York, NY. whether handwritten mail moves more I urge my colleagues to give serious atten­ Richard J. Fox, Philadelphia, PA. slowly through the heavily automated tion to this letter. The fight for freedom in Mendy Ganchrow, M.D., Monsey, NY. system. Nicaragua is real. I believe it is apparent what Joshua 0. Haberman, rabbi, Washington For a piece of mail to get from here to side the Sandinistas have joined. Hebrew Congregation, Washington, DC. there, it follows a route worthy of Rube MARCH 18, 1986. Hart Hasten, president, Herut Zionists of Goldberg. According to George Conrad, Hon. VIN WEBER, America. public affairs officer for the Washington, U.S. House of Representatives, George Klein. New York, NY. D.C., Post Office, mail is collected by a Washington, DC. William J. Lowenberg, San Francisco, CA. postal collection driver or a dispatch driver DEAR MR. WEBER: We write to you as Ivan Novick, chairman of the board, Zion- and taken to a Management Sectional Americans concerned about the growing ist Organization of America. Center. There nonmetered mail is post­ threat to U.S. strategic interests in Central Stanley Rabinowitz, rabbi, Adas Israel marked , a $250,000 device boasting 12 We have also witnessed the Sandinistas' consoles from which operators direct the support for revolutionaries in Latin America THROWING AWAY THE CLOCK flow of mail. Letters mailed with mechani­ and beyond. cally printed addresses pass the LSM and go We watched with dismay as Nicaragua's directly to Optical Character Readers Jewish community suffered under Sandi­ HON. JOHN P. HAMMERSCHMIDT

Everyone who hopes to get old-and most Laurence Olivier played a memorable STATEMENT OF MALCOLM BALDRIGE, SECRE­ do, given the alternative-has a vested inter­ King Lear when he was 77, impersonating a TARY OF COMMERCE, BEFORE THE CONGRES­ est in surveys like this. Its timing, however, man several years older then he was with SIONAL STEEL CAUCUS EXECUTIVE COMMIT­ also reflects major changes going on in our the energy required of someone several TEE society. Since World War II, men and years younger. Robert Penn Warren has Mr. Chairman and members of the Com­ women over 50 have been a declining ele­ been writing poetry, criticism, and fiction mittee, thank you for allowing me this op­ ment in the work force. But, only a decade for 60 years, and at 80, still in the ink, he portunity to meet with you today. We are from now, the first of the baby boomers will becomes our first poet laureate. Martha pleased to report that the President's steel enter their 50s, and older workers will begin Graham, 91, no longer dances, but she chor­ program is working. We have maintained to increase. eographs dances and directs the dancers. As the number of older workers grows, the from the outset that fourth quarter 1985 number of young people going to work is de­ Georgia O'Keeffe, who died last week at 98, Census import data would begin to show the clining, and soon there may be acute labor worked to the end. When her sight failed, real effectiveness of the President's pro­ shortages in certain occupations. If older she stopped painting and began modeling in gram. workers are to be encouraged to stay on the clay. Fourth quarter 1985 imports were the job, it helps to build trust in their compe­ Keeping occupied and active, of course, lowest since the program began. Imports tence now. And as baby boomers worry keeps a person feeling younger. People who from arrangement countries fell 23 percent whether there will be enough left in the re­ are written up in Who's Who live longer from 1984. Fourth quarter import penetra­ tirement funds to support their yuppie life­ than people who aren't. tion dropped from 28.4 percent in 1984 to style, they can take some consolation in the After Malcolm Cowley, the literary critic, 22.7 percent in 1985. fact that they can continue to work d steel abetes, gallstones and signs of congestive As the overall trends improve, we also are were equivalent to 98 percent of the indus­ heart failure decides after a week in the taking steps to ensure that foreign govern­ try's capacity, and recent reports show that hospital not to have gallbladder surgery. ments adhere strictly to any special terms flat rolled steel prices for second quarter de­ The hospital insists that she be sent home, or provisions contained in their arrange­ livery are now up about 8 percent from late despite her frail condition. "It was a mis­ ments. Each arrangement provides for the 1985 levels. The industry's overall operating take," says Dr. Bergein Overholt. "Within creation of new product categories if the rate through the first nine weeks of this twelve hours she was back in the hospital in product mix of exports shifts within an ex­ year was 70.5 percent, compared to 61.4 per­ a prestroke condition. It was touch and go isting category, significantly exceeding pre­ cent for the same weeks last year. Raw steel to save her." agreed levels. The domestic industry has ap­ production rose from 13.6 million tons for , At hospitals across the U.S., similar tales plauded the results gained through our these weeks in 1985 to 15.1 million tons this of callous and even life-threatening treat­ tough stance in recent consultations with year. ment apparently stemming from changes in Japan, Korea, and Brazil concerning this Steady progress is being made but we are the Medicare system seem to be cropping up provision. not out of the woods yet. As the President's with disturbing frequency. To concerned Japan agreed to break our four new sub­ program continues, this Administration will doctors and health-care groups, they reflect categories, including electrical sheet and ensure that the industry has a full and fair a growing gap in the American health-care strip, a major concern of the domestic in­ opportunity to regain its competitive foot­ system. Carroll Estes, director of the Insti­ dustry. Each new sub-category has a specific ing. tute for Health and Aging at the University export ceiling, effective as of January 1, of California, San Francisco, calls it the 1986. Japan will also reduce exports in four "no-care zone." other sensitive product areas. These prod­ THE "NO-CARE ZONE" In January, Estes' institute released the ucts will be immediately broken out as sepa­ results of a threP.-year study concluding rate sub-categories if exports exceed agreed HON. SAM GFJDENSON that Medicare patients are being released benchmark levels. OF CONNECTICUT "sicker and quicker" from the nation's hos­ As a result of our talks with Korea, we IN THE HOUSE OF REPRESENTATIVES pitals. The study, which examined medical concluded a memorandum of understanding care in 32 communities in eight states, concerning standard pipe. Korea agreed to Wednesday, March 19, 1986 found that the newly ousted patients, still cut its standard pipe exports to historical Mr. GEJDENSON. Mr. Speaker, I would like in need of treatment, often have nowhere levels, 38 percent below the peak third quar­ to call my colleagues attention to an article else to turn for help. ter 1985 rate. If Korean standard pipe ex­ that appeared in the medicine section of Time The problem began three years ago, after ports exceed this amount, a separate sub­ a major reform of Medicare. Under its earli­ category will automatically be broken out magazine for March 24. The story, about the er provisions, the plan, which covers the immediately. premature discharge of Medicare patients, is health-care costs of citizens who are over Brazil has agreed to break out electrical illustrated with a drawing of an elderly man in age 65 or disabled, paid for all "reasonable" sheet and strip as a sub-category, with an a hospital bed staring anxiously at a parking hospital expenses. By the late '70s, however, 5582 EXTENSIONS OF REMARKS March 19, 1986 this blank-check approach had led to a diz­ rangements. A report to be released later and well established principles of our system zying 17% annual increase in Medicare's this month by Harvard's Center for Health of taxing income. hospitalization costs and warnings that the Policy and Management proposes a more Such a proposal ignores the basic tenet of system would be bankrupt by 1990. radical solution: revising the Medicare To forestall disaster, the rules were system so it pays for extended nursing­ tax policy, that the income tax is levied on net changed in 1983. A patient's ailment is now home stays, home care and other outpatient income only, not on the cost of goods sold or assigned to one of 470 diagnosis-related care. Such reform, which could cost $50 bil­ other operating expenses. Excise taxes have groups, which categorize treatment for ev­ lion a year, seems unlikely to win congres­ been deductible because these taxes collect­ erything from appendicitis to viral meningi­ sional favor in an era of cost cutting. But ed by businesses are not the property or tis. Each DRG carries a fixed reimburse­ until something is done to meet the needs of income of the taxpayer-collector. To regard ment rate based on the cost of treating the patients evicted from their hospital beds, the excise taxes paid to a collector as income average patient. If a hospital can treat a pa­ large numbers will continue to fall into the to the collector would be to impose a tax on a tient for less than the DRG rate, it can .keep perious no-care zone. the change; if the patient's care exceeds the tax. ceiling, the hospital absorbs the loss. In That such a proposal would be seriously theory, hospitals will lose money on compli­ THE AMERICAN JEWISH CON­ considered causes me great concern. To say cated cases and save on simpler ones, and GRESS OPPOSES AID TO NICA­ that the excise tax payments are not deducti­ Medicare costs will be brought under con­ RAGUA ble is to increase income subject to tax and trol. this simply is not fair. I say again, it is a tax on In financial terms, the DRG system ap­ HON.ROBERTJ.MRAZEK a tax. It's just that simple. This can only have pears to be working. It has helped limit the serious economic and employment impact annual increase in hospital costs to 5% and OF NEW YORK throughout the country. It's bound to increase reduced the average hospital stay for Medi­ IN THE HOUSE OF REPRESENTATIVES care patients from 9.5 days in 1983 to 7.5 the price of all consumer goods that are al­ days last year. Many private insurers have Wednesday, March 19, 1986 ready burdened by excise taxes, and we all introduced DRG systems of their own. Says Mr. MRAZEK. Mr. Speaker, at this critical know that increases in the costs of consumer Jack Owen, executive vice president of the juncture in our Nation's policy toward our goods generally cause inflation. American Hospital Association: "The DRGs This is not tax reform and I can not accept have created efficiency and economy." neighbors in Central America, it is of utmost importance that the views of our constituents such a concept. I have so advised the chair­ But they have had a less salutary effect man of the Committee on Finance and I want on many patients. The Washington-based be made clear. I welcome the opportunity to American Association of Retired Persons apprise my colleagues of a decision made by the people in the Second District ot T ennes­ has received hundreds of letters from pa­ the American Jewish Congress, one of the see to know that this is not my concept of tax tients who claim they were kicked out of leading Jewish organizations in the United reform and that whenever I have the opportu­ hospitals prematurely. "Some still had high States, to 0ppose the President's policy nity I will be opposing it. temperatures, draining wounds, and were toward Nicaragua. feeling terrible." says Barbara Herzog, direc­ tor of AARP's health-care campaign. "Many This week, the American Jewish Congress almost unanimously adopted the following res­ NEW HORIZONS FOR AMERICA'S had no one to care for them properly at YOUTH home and could not get admission into a olution condemning the current ContrE aid nursing home." package and the policy approach of this ad­ A study last year by the U.S. Senate Spe­ ministration toward Nicaragua: HON. DANIEL K. AKAKA cial Committee on Aging uncovered other AMERICAN JEWISH CONGRESS 1986 BIENNIAL OF HAWAII problems. The committee found that some CONVENTION hospitals post lists of "bad doctors," who IN THE HOUSE OF REPRESENTATIVES allow hospitalized patients to exceed the Draft resolution: Contras in Nicaragua. DRG ceiling, and of "good doctors," who Submitted by: Resolutions committee. Wednesday, March 19, '1986 boost hospital profits by discharging their We urge the administration and the Con­ gress to bring an immediate end to our un­ Mr. AKAKA. Mr. Speaker, I would like to patients quickly. Physicians reported they share with my colleagues a speech prepared were under pressure not to admit complicat­ declared war against the Government of ed cases that might prove costly to treat. Nicaragua and to cease supplying money, by one of my constituents, Douglas Kiang. And, at seven hospitals operated by the Par­ arms, munitions and political legitimacy to This fine speech was the winning entry from acelsus Health Care Corp. of Pasadena, the Contras. Instead, the United States the State of Hawaii in the Veterans of Foreign Calif., doctors receive bonuses if costs are must seek a peaceful political solution to Wars [VFW] Voice o~ Democracy Scholarship kept within DRG range. This practice is the conflict. It must seek a negotiated solu­ Program. tion, preferably through the Contradora now under federal investigation. The VFW has sponsored the Voice of De­ Health and Human Services Secretary process. The United States, and all parties to the conflict, must make a permanent mocracy Program since 1961. During the past Otis Bowen insists that Medicare benefici­ 24 years, over 5 million students have partici­ aries "continue to receive the best-quality commitment to democratic principles, civil care available." While HHS has received liberties, economic reform and social justice. pated in this worthwhile program and more 4, 700 complaints about Medicare abuse re­ than $3 million in awards have been present­ lated to DRGs, he says, there is no evidence ed to deserving students. This past year alone of "any systematic increase in premature TAX REFORM PROPOSALS saw more than one-quarter million students discharges." Nonetheless, Bowen last month participating from over 8,000 schools. I com­ announced that upon admission to a hospi­ HON. JOHN J. DUNCAN mend the VFW for conducting the Voice of tal, Medicare patients will soon receive a OF TENNESSEE Democracy Program and helping students statement explaining their rights, including extend their education through this scholar­ the right to appeal a discharge decision. IN THE HOUSE OF REPRESENTATIVES Even critics of Medicare policies concede Wednesday, March 19, 1986 ship program. that it often makes sense to release patients I am especially proud that the VFW has from $300-a·day hospitals and transfer them Mr. DUNCAN. Mr. Speaker, as we have chosen a resident of the Second Congres­ to $65-a-day nursing homes or even less been reading, hearing and learning more sional District as Hawaii's winning entry this costly home care. But, says Dr. T. Reginald about the tax reform proposals that are being year. I am certain you will agree that Douglas Harris, president of the American Society of advanced in the other body by the chairman Kiang's speech is an excellent representation Internal Medicine, these cheaper alterna­ of the Finance Committee, I find that I have a of this year's theme, "New Horizons for Amer­ tives are not always available, and Medicare growing concern about what appears to be ica's Youth": skimps on paying for them. Meanwhile, he the centerpiece of the package that is now NEW HORIZONS J.l'OR AMERICA'S YOUTH notes, hospitals say, "It's not our problem." under consideration. If I am correct in my un­ Republican Senator John Heinz of Penn­ derstanding, legislation is being suggested to Centuries ago, it was believed that the sylvania is planning to introduce a bill in world was flat; that the world ended at the Congress that would compel hospitals to ar­ deny businesses the right to deduct Federal horizon, or the point beyond which the eye range suitable follow-up care for discharged excise taxes collected for and paid to the could see no further. Once a ship reached patients and make local Medicare watchdog Federal Government. i '1is is a totally new that point, it would fall off the edge of the agencies responsible for supervising such ar- concept and a departu. e from our traditional world and everyone aboard would perish a March 19, 1986 EXTENSIONS OF REMARKS 5583 fiery death at the hands of unknown It would seem now that, afloat on the the famous March on Washington. More demons and monsters. ocean of opportunity, America's youth's than 200,000 people marched from the It wasn't until the late 1400's that a sailor only problem may lie in simply deciding in Washington Monument to the Lincoln Me­ named Christopher Columbus sailed over which direction to sail. But, once that goal morial. the horizon and made the discovery that has been established, you and I will be well I am a teenager who wants to look up to there was no impassable barrier beyond the on our way towards fully realizing the free­ Dr. Martin Luther King Jr. I describe him horizon, but instead, an infinite number of dom and opportunities we, as the Youth of as a person who had a dream and carried it horizons beyond the horizon, as many as far America, have been given. out until he was killed. One day he said, "I as he wished to said to reach the next one. have a dream," and he not only said it, he The courage and the imagination required lived it. He was not ashamed of his color, his for Columbus to look beyond the horizon DR. MARTIN LUTHER KING, JR. family or how much he had. He didn't care and venture past it could only have been who looked him up and down when he found within himself-for nowhere but HON. PETER W. RODINO, JR. walked down the street. King never put within himself could he have found the cre­ OF NEW JERSEY himself down and he never thought he was ativity and the imagination to venture past better than anyone else. I will always appre­ the limits of his sight. IN THE HOUSE OF REPRESE.."'iTATIVES ciate the things Dr. Martin Luther King did Similarly, I too have begun to realize that Wednesday, March 19, 1986 and I will never let anyone tell me that he there exists a multitude of New Horizons Mr. RODINO. Mr. Speaker, this past Janu­ was just a black man with a dream. He was for America's youth, and that the key to ary our Nation celebrated the life and work of a black man who tried his best to fulfill his those shining lands of success has been dream. If Dr. Martin Luther King Jr. could placed within our grasp-as the freedom of a great American, Dr. Martin Luther King, Jr. have a dream then I, Esther Whitted, can imagination. Americans across the country honored Or. have a dream also. A dream of peace, love As Columbus realized five hundred years King's memory in many ways-elementary and equality for everyone. I will always re­ ago, many times people are limited by what schoolchildren set aside special days to study member Dr. Martin Luther King Jr. their eyes can or cannot see. It takes a the meaning of his legacy, blacks and whites person with imagination to realize that joined hands in parades and marches com­ there often lie unexplored worlds far memorating a turbulent period of growth, civil RESEARCH MEDICAL CENTER beyond the evident horizon; what the eye CELEBRATES ITS CENTENNIAL can see is very seldom "all that there is". rights leaders rededicated themselves to re­ The same holds true for you and I, Ameri­ sisting the Reagan administration's efforts to ca's youth; our country offers not one, but turn back the clock on affirmative action and HON. ALAN WHEAT an infinite number of horizons to each of other hard-won social justice gains. OF MISSOURI us; an infinite number of goals to be set, and I am especially proud of the efforts made by achieved. Our nation not only provides us the staff of the Orange Public Library to IN THE HOUSE OF REPRESENTATIVES with these horizons in the form of opportu­ ensure that Dr. King's great legacy is passed Wednesday, March 19, 1986 nities, but it also gives us the freedom to re­ on to and carried on by our Nation's youth. alize our own horizons. Mr. WHEAT. Mr. Speaker, at Research This freedom of imagination is indeed one Thanks to the hard work of Mr. E. David Medical Center, located in Kansas City for 100 of the greatest freedoms we have. We Amer­ Grice, director of young adult services, and years, the changes in medical technology, ma­ icans are free to look in any direction to Marvin Scilken, director of the library, Dr. chinery, and even in its buildings have been find new horizons for ourselves to achieve­ King's message of brotherhood and racial jus­ astounding. One thing at Research, however, we can look in the directions of space, or tice will not fade away with the passage of has not changed in the last century: the un­ medicine, or bio-technology, or anywhere time, but instead will continue to live on in the equaled commitment and unsurpassed dedi­ else we choose to set our sights. All of these thoughts and deeds of countless young cation to patient service. offer horizons that we have been given the people he continues to inspire. opportunity to see, vast opportunities, limit­ In 1886, a group of prosperous business ed only as much as we allow ourselves to As part of Dr. King's birthday celebration, leaders of German descent organized to limit them, and this is why this freedom is Mr. Grice and Mr Scilken sponsored the create the German Hospital. In 1981, the hos­ so important to us. For without it, our hori­ Orange Public Library Martin Luther King, Jr., pital's name was changed to Research Hospi­ zons would lie along one straight and Essay Contest. The contest entrants were tal because of anti-German sentiment aroused narrow path, offering us only a flat world of asked to write about Dr. King's life and ideals. in World War I. Started in a frame residence limited goals. Ms. Esther Witted, of Orange High School, at 23d and Holmes Street, Research Hospital However, as today's youth of America, we won the first place prize. Ms. Razon Johnson, must ask ourselves what our horizons are. began operating with minimal resources and of Orange Middle School, won second place an inventory that included a stable, two cows, What are our goals? Where do we want to honors. Ms. Yolanda Pray, of Orange High go? What is our idea of personal success? As and a tent. America's youth we must take full advan­ School, won third place honors. Today, the Research Health Services tage of the freedom that our country has to Mr. Speaker, I am proud to commend to System encompasses a complex, multimillion­ offer and decide for ourselves where our you the following first prize essay written by dollar industry. Its resources span two States, personal horizons lie and set sail for them, Ms. Witted, and I join Ms. Witted, her fellow including hospitals, occupational health clinics, never taking our eyes off our goal. We must students and the Orange Public Library staff in a psychiatric center and a variety of other fa­ also decide what we will do once that goal paying tribute to Dr. King and his dream and cilities and services. has been reached. Will we simply fall off in looking forward to the day when his dream the edge of the world and disappear? Or will Research Medical Center's century of serv­ we instead cast our eyes far out to the next, will become a reality for all Americans. ing the ill in Kansas City has been marked by distant horizon and triumphantly sail on? DR. MARTIN LUTHER KING, JR. a tradition of service and growth. Even in the Indeed, new horizons for America's youth Dr. Martin Luther King Jr. was born Jan­ early 1900's, Research was a pioneer in pro­ depends upon us, the individuals. Just about uary 15, 1929 in Atlanta, Georgia. viding quality health care. In 1911, the hospital anyone can establish a horizon and sail King graduated from Morehouse College boasted the first obstetrics department in a toward it, but the true test of the individual and completed advanced studies at Crover private Kansas City hospital. Two years later, Theological Seminary and Boston Universi­ comes after that first step over the un­ Research was among the first hospitals to known. It has been said that with great ty. His father and his mother's father were freedom comes great responsibility. It is not Baptist ministers and he was ordained a have a radiology department. only our prerogative, but our responsibility minister in 1947. King became the pastor of By 1936, Research Hospital occupied seven to keep pushing our horizons further and the Dexter Avenue Baptist Church in Mont­ buildings, including a diagnostic clinic. But the further out, constantly increasing our gomery in 1954. post-World War II population boom made the boundaries. Coretta Scott of Marion, Alabama became hospital's accommodations inadequate. With the incredibly vast ocean that we, as his wife in 1953. Robert E. Adams, who administered the hos­ Throughout King's life he received many todays youth now find ourselves afloat in, pital for 28 years until his retirement in 19~1. we must set goals for ourselves and keep awards and one of them was the Nobel sailing toward new horizons or risk falling Peace Prize. He received if for leading the spearheaded a difficult 10-year effort to build prey to the monsters of stagnation lurking negro struggle for equality through nonvio­ a new hospital. Just below the surface of that cool, blue lent demonstrations in 1964. As time pro­ Groundbreaking began in 1955 for the water. gressed, King did many other things such as $12.5 million hospital, but it took 8 long years 5584 EXTENSIONS OF REMARKS March 19, 1986 before the new building was finished at Meyer they support assistance to the Contras. Unfor­ with paperwork, give minorities and women Boulevard and Prospect. Many believe Mr. tunately, the administration has refused to preferential treatment at the expense of Adams has made the greatest contribution to make this document available to the public white men, and create new dis­ crimination. They claim that affirmative the development of Research Medical Center and the press. action stigmatizes those it hopes to aid and in the last 100 years. He brought a new di­ This misleading use of data and the selec­ undermines their self-respect by suggesting mension to Research by moving the adminis­ tive release of only certain polling information that they cannot succeed without govern­ tration and the leadership of the hospital from demonstrates that the administration is be­ ment help. Further, they see job discrimina­ the board room to the office of the executive coming desperate. It simply cannot name a tion as a less significant cause of poverty director. He emphasized a new style of hospi­ single country that supports our Contra policy among minorities than other factors: family tal discipline and management organization, nor can it demonstrate any popular support in disintegration, teenage pregnancy, drug ad­ exemplified by a commitment to excellence in Central America. diction, poor nutrition, and inadequate schooling. Also, they argue that affirmative the delivery of health care. Mr. Speaker, the administration is clearly action is unnecessary because the battle for The spirit of excellence continues today. In alone on this one. equal opportunities has been won and that 1979, physicians at Research begin making discrimination can be fought on a case-by­ high-tech house calls to rural hospitals in Mis­ AFFIRMATIVE ACTION case basis. souri and Kansas. Today, the Research physi­ To supporters of affirmative action, these cians make available their expertise and spe­ attacks threaten two decades of slow and cialized techniques at 35 smaller hospitals HON. LEE H. HAMILTON often painful progress for the employment and countless nursing homes, doctor's offices, OF INDIANA of minorities. To them, these attacks indi­ IN THE HOt'C3E OF REPRESENTATIVES cate that the federal government is no and schools and businesses in rural areas. longer interested in equity in the work Mr. Speaker, the last 100 years at Research Wednesday, March 19, 1986 place. They point out that the use of quotas has been marked by expansion, growth and a Mr. HAMILTON . Mr. Speaker, I would like to in affirmative action programs has always commitment to the delivery of quality care at insert my Washington Report for Wednesday, been illegal, but that goals and timetables the lowest possible cost. It truly has been a March 19, 1986, into the CONGRESSIONAL have provided a way of measuring progress century of caring. toward equal opportunity and have helped RECORD: integrate minorities and women into Ameri­ AFFIRMATIVE ACTION can life. Without goals and timetables, these NINETY PERCENT OF THE The national debate over the use of racial groups will continue to lose jobs to less­ PEOPLE IN CENTRAL AMERICA preference to combat discrimination against qualified whites. Although a color-blind so­ DO NOT SUPPORT U.S. POLICY minorities has reached a watershed. The Su­ ciety is a worthy goal, it is far from a reali­ preme Court will soon decide three major ty. They also argue that affirmative action cases involving affirmative action plans, and works, that many local governments and HON. MICHAEL D. BARNES the Reagan administration is locked in an businesses favor it, and that it strengthens OF MARYLAND internal debate over a proposal to eliminate our economy and competitiveness by bring­ IN THE HOUSE OF REPRESENTATIVES a twenty-year old rule requiring federal con­ ing new sources of talent and creativity into tractors to set goals and timetables for the workforce. Wednesday, March 19, 1986 hiring minorities. The outcome of this Most of us believe discrimination on the Mr. BARNES. Mr. Speaker, we keep hearing debate, and the court cases, could perma­ basis of race or sex is wrong, and we favor from the administration that although none of nently reshape affirmative action. equal opportunity for everyone. Yet people the governments in Central America are will­ For two decades affirmative action has disagree over how discrimination should be been used to provide equal opportunities for determined. Some argue we should be con­ ing to state publicly that they support our minorities excluded from the workforce be­ cerned only with demonstrable discrimina­ policy, 90 percent of the people in the region cause of discrimination. Under affirmative tion against an individual. Others believe have said in response to a poll that they sup­ action, employers may not discriminate that the best way to show discrimination is port U.S. policy. That is simply not true. against any employee or job applicant be­ to see if an employer's workforce generally The administration quotes a poll conducted cause of race, sex, religion, or national reflects the available pool of qualified work­ last summer by a Gallup affiliate in Costa origin and must take "affirmative actions" ers. Those who favor broad remedies to cor­ Rica. I have been unable to find any questions to assure that minorities and women are rect such racial or sexual imbalances in an treated fairly. Until recently, Congress, the employer's workforce describe them as in the poll on whether or not people supported courts, and presidents supported the use of "goals," while opponents brand them U.S. policy. The participants were asked what affirmative action to help minorities in "quotas." general opinion they had of the United States hiring and advancement. It is generally Personally, I do not favor quotas, and I and of several other countries. On the aver­ agreed that these programs have brightened believe that care must be taken that goals age, over 90 percent of the people polled had the employment picture for minorities. For do not become rigid quotas to be met. But I a very favorable or somewhat favorable opin­ example, between 1967 and 1983, minority also think that without goals and timetables ion of the United States. That is very different employment in the general workforce grew we would be less likely to achieve equal than saying that 90 percent of the people sup­ from 12 percent to 19 percent. treatment of women and minorities. I do not Affirmative action has always been a diffi­ think government should force employers to port U.S. policy. cult concept, partly because it is so difficult meet goa.ls by hiring less-qualified appli­ The participants were also asked whether to apply. The web of judicial decisions on af­ cants. Because enforcing rigid quotas is or not they support "assistance to the Con­ firmative action is intricate and confusing. easier than determining if recruitment and tras" and 69 percent of the Costa Ricans Courts do not want to cure discrimination hiring is done in good faith, affirmative polled said yes. But as was argued in an NPR with more discrimination, but neither do action has sometimes been taken too far. report from Costa Rica yesterday, one needs they want to undermine affirmative action But the total repeal of affirmative action to put this in the right context: when the poll programs. Although the Supreme Court has would be a mistake. Affirmative action has was conducted last summer, the only assist­ ruled illegal the use of rigid quotas, neither brought significant improvement for women the Court nor federal law forbids affirma­ and minorities in the work force. The objec­ ance provided to the Contras was humanitari­ tive action plans that include race among tive has been a level of fair employment an assistance, and therefore, the answers the factors considered. Affirmative action that will make all goals and timetables un­ relate to humanitarian assistance and not to plans appears in many different circum­ necessary, but that day has not yet come. the current request. Furthermore, the poll was stances, and the lawfulness of a plan often After all, full-time female workers eam only taken after a border incident that resulted in depends on the specifics of the case. The 63 percent as much as males, black unem­ the death of two Costa Rican civil guardsmen outcome of the cases now in court may clari­ ployment is still more than twice that of when the anti-Sandinista feeling in the country fy the law and define the limits of affirma­ whites and the jobless rate exceeds 40 per­ was very high. tive action. cent for black teenagers. Opponents of affirmative action claim Undoubtedly there are limits to the effec­ Mr. Speaker, we know now that the admin­ that goals and timetables, while meant to be tiveness of affirmative action programs. My istration also has in its possession a more flexible, have in practice become rigid sense is that these programs are less effec­ recent poll conducted last November which quotas. In their view, quotas and goals help tive than they once were. They should not shows that in answer to the same question, neither minorities nor women in low-salary end, but other approaches are needed. I only 39 percent of the people polled said that jobs, they unnecessarily burden employer5 would prefer to attack economic inequality March 19, 1986 EXTENSIONS OF REMARKS 5585 without using preferences. I believe that im­ LISA HEMINGWAY, MISSOURI to meet the challenges of new horizons for proved housing and nutrition, better VOICE OF DEMOCRACY WINNER America's youth. I pledge to go forth deter­ schools, and greater self-help efforts in mi­ mined to maintain those old and forever en­ nority communities are better ways to ad­ during values of trust in God, love for dress inequality, but there has not been HON. GENE TAYLOR others, and freedom for all. enough progress in these areas. We should OF MISSOURI I know that all new horizons must be built refine and clarify affirmative action, but not IN THE HOUSE OF REPRESENTATIVES upon the solid foundation of old, enduring abandon it, with the hope that it will make Wednesday, March 19, 1986 values. I pledge to go forth determined to some contribution to diminishing discrimi­ sustain the new horizons of space explora­ nation. Mr. TAYLOR. Mr. Speaker, the Voice of De­ tion, medical technology, and world peace. mocracy Essay Contest, ·sponsored by the As I commit my life to these new horizons, I Veterans of Foreign Wars, has been an out­ will be strengthening the foundation of DEFICIENCY PAYMENTS standing educational program, providing schol­ trust in God, love for others, and freedom arships of more than $3 million over the past for all. ·Most importantly, as an American 24 years. youth through my new horizons, I will sus­ tain the hope that America will remain the HON. ARLAN ST ANGELAND I am pleased that a constituent of mine, land of the free. OF MINNESOTA Lisa Hemingway of Springfield, MO, was ad­ A symbol of that freedom is our beloved judged our State's winner. Her winning essay IN THE HOUSE OF REPRESENTATIVES Statue of Liberty. She has stood secure in follows: the New York Harbor for 100 years rea­ Wednesday, March 19, 1986 NEW HORIZONS FOR AMERICA'S YOUTH maining the universal symbol of America. Golden rays of sunlight break through As we restore the Statue of Liberty, we as a Mr. STANGELAND. Mr. Speaker, today I am nation, at the same time restore the beliefs introducing a bill which will modify the basis the hazy clouds of morning. Soon after day­ break, the space shuttle Discovery is she represents. Just as the Statue of Liberty for the determination of deficiency payments brought into full view by the sun's beacon is restored, it is appropriate for America's for wheat and feed grains. of light. A countdown begins to set the stage youth to renew their commitment to old The 1985 farm bill provides for two pay­ for another journey into space. As Discov­ values as they face bright, new horizons. ments. The regular deficiency payment is ery launches into the heavens to explore based on the difference between the target new galaxies, silent billows of white smoke are left behind. Although this smoke will SAN BERNARDINO VALLEY COL­ price and the statutory loan rate or the aver­ eventually disappear, it represents a space LEGE CELEBRATES ITS 60TH age market price during the first 5 months of technology that has constantly progressed YEAR the marketing year, whichever is higher. In ad­ since Neil Armstrong's first walk on the dition, the Secretary of Agriculture has the au­ moon. HON. GEORGE E. BROWN, JR. thority under the law to reduce the loan rate While astronauts probe space, the medical OF CALIFORNIA by up to 20 percent. If the Secretary uses this field is probing into new cures for sustaining human life. Picture doctors serving long, la­ IN THE HOUSE OF REPRESENTATIVES authority, which he has for the 1986 wheat borious hours in the operating rooms. With Wednesday, March 19, 1986 and feed grain crops, the producer is then en­ beads of anxious perspiration on their fore­ titled to another payment. This payment is heads, they anticipate the long awaited Mr. BROWN of California. Mr. Speaker, it is based on the difference between the statutory countdown of medical miracles. The an­ with great pride that I recognize the anniversa­ loan rate and the new loan rate or the aver­ nouncement of cures of dreaded diseases ry of a fine institution of higher learning in my age market price whichever is higher during and transplants of human hearts, brings district. San Bernardino Valley College will murmurs of excitement and thankful pray­ the entire 12 month marketing year. ers to the lips of people around the world. soon celebrate its 60th anniversary of serving For example, the 1986 program for wheat Still another countdown is in progress. students from throughout San Bernardino provides for a target price of $4.38 per bushel. Seated around a long conference table are County. In 1926, like many community col­ The statutory loan rate is $3 providing for a men and women from around the world. In leges in California, Valley College was estab­ maximum deficiency payment of $1.38. The their explicit discussions, they are seeking lished as a separate entity from the local uni­ to find solutions to the ever arising world fied school districts in order to better serve Secretary did use his authority to drop the problems. Through careful thought, patient loan rate to $2.40 thereby providing for a the higher education needs of the community. response, and deliberate speech, these land­ The beginnings of Valley College were in­ second deficiency payment with a maximum mark talks will one day bring the summit of rate of 60 cents. This deficiency payment is international understanding and world auspicious. When first opened in 1926, it determined by using the market price for the peace. claimed but 140 students taught by a faculty of 16, in four buildings situated on 30 acres. entire marketing year. Therefore, farmers must Today, America's youth stand on the The library claimed 1,400 volumes. It is a wait until the end of the marketing year which threshold of the rest of their lives. They are able to look over the new horizons of space credit to the community of San Bernardino would be June 1987 for wheat, barley, and exploration, medical technology, and world that today these numbers have grown dra­ oats and October 1987 for corn and sorghum peace. Young peoples' search for new hori­ matically. Over 10,000 students now attend for this final payment. zons reveals opportunities for excitement, classes taught by a faculty of 170 in 18 major This planting season many farmers are significant personal contributions, and com­ mitment to world peace. buildings on 85 acres. Over 100,000 volumes having a very difficult time generating enough are now housed in a two-building, multistory li­ cash and credit to put in a crop and pay their America's youth uniquely contribute to our nations striving fields of excellence by brary complex. bills. Moreover, considering the present finan­ being the primary supporters of space ex­ A real source of pride for Valley College is cial stress in American agriculture, deficiency ploration, medical technology and world the Public Broadcasting Services affiliate, payments will play a very important role in de­ peace. As they learn about these vital occu­ KVCR-TV, which is housed on campus and termining whether the farmer will be able to pational fields, they secure our nation's owned by the college district. This PBS facility continue to meet financial obligations for the future. As our nation's youth enter their was the first television station owned by a crop year. For these farmers to wait until late new horizons, they will replenish these vital fields with new, fresh insights. community college in the Nation, and offered 1987 to receive the remainder of their defi­ America's youth stand on the threshold of southern California its first public broadcast ciency payments for this year's wheat and the rest of their lives look back on the tradi­ station. Many students have the unique oppor­ feed grain crops does not make sense. tional American values that have sustained tunity to train at a functioning televislon station My bill will require all deficiency payments them throughout their lives. A search of and at the community service radio station, for wheat and feed grains to be determined these eternal values reveals a trust in God, a also located on campus. Wide areas of south­ on the basis of the average market price re­ love of parents and one another, and an al­ ern California are served by these stations. ceived during the first 5 months of the market­ legiance to America, and land of the free. I commend the thousands of people who I represent the youth of America. As a ing year. It will assure the American farmer graduating senior, I stand on the threshold have worked for the past 60 years to make that deficiency payments will be made on a of the rest of my life. I am able to forge a San Bernardino Valley College the great col­ consistent and timely basis and help him meet new path in front of me and face many new lege that it is today. College President Dr. the financial obligations of the crop year. tomorrows. I pledge to go forth determined Arthur M. Jenson, the board of trustees, staff, 5586 EXTENSIONS OF REMARKS March 19, 1986 and students at Valley College continue to Resolved, That the Reserve Officers Asso­ now under consideration in the United make the college's philosophy of education ciation of the United States, chartered by States House of Representatives. more than just an empty promise. This philos­ the Congress, urge the Administration to Therefore, Be it resolved by the House of abandon any initiatives to terminate the Representatives of the State of Arizona: ophy states that, "The essential purposes of New GI Bill and urge the Congress to con­ 1. That the members of the House of Rep­ education are the preservation and enhance­ tinue, extend and fund the effective educa­ resentatives respectfully request that the ment of all that a society believes to be vital tional assistance program. United States House of Representatives ap­ both to its survival and for the enrichment of prove the McClure-Volkmer Bill. the human spirit." For 60 years, San Bernar­ 2. That the Secretary of State of the State dino Valley College has both enhanced its ARIZONA STATE HOUSE OF REP­ of Arizona transmit copies of this Resolu­ community and enriched the lives of its stu­ RESENTATIVES SUPPORTS H.R. tion to the Speaker of the United States dents. 945 House of Representatives and to each Member of the House from Arizona. HON. ELDON RUDD Passed the House-February 25, 1986 by the following vote: 51 Ayes, 7 Nays, 2 Not NEW GI BILL IMPORTANT TO OF ARIZONA Voting. STRONG NATIONAL DEFENSE IN THE HOUSE OF REPRESENTATIVES Filed in the Office of the Secretary of Wednesday, March 19, 1986 State-February 25, 1986. HON. THOMAS A. DASCHLE Mr. RUDD. Mr. Speaker, I am pleased to OF SOUTH DAKOTA offer for consideration a resolution approved BRAZILIANS DEMAND CLARIFI- IN THE HOUSE OF REPRESENTATIVES by the Arizona State House of Representa­ CATION OF PRESIDENT'S Wednesday, March 19, 1986 tives urging the U.S. House of Representa­ SPEECH tives to approve the McClure-Volkmer bill. Mr. DASCHLE. Mr. Speaker, the Reserve I am a cosponsor of H.R. 945, the Firearms Officers Association of the United States is a Owners Protection Act, and I support passage HON. MICHAEL D. BARNES congressional chartered association of Re­ of the Volkmer substitute. I encourage my col­ OF MARYLAND serve, Regular, active and retired officers of leagues to do the same. IN THE HOUSE OF REPRESENTATIVES the uniformed services, with a current mem­ PETITION OR MEMORIAL bership of more than 120,000. The primary Wednesday, March 19, 1986 Under clause 1 or 4 of rule :X:XII, the fol­ purpose of the Reserve Officers Association is lowing petitions and papers were laid on the Mr. BARNES. Mr. Speaker, last month the to support a military policy for the United Clerk's desk and referred as follows; foreign minister of Brazil came to Washington States which will provide for the Nation's se­ By Mr. Rudd Petition or Memorial of Ari­ along with the foreign ministers of seven other curity. zona State House of Representatives. Latin American countries to plead with the ad­ Recently the National Council of the Re­ OFFICE OF THE SECRETARY OF STATE, ministration not to provide additional funding serve Officers Association adopted a resolu­ Phoenix, AZ, March 6, 1986. for the Contras. He was ignored. tion in strong support of the new GI bill. This Hon. ELDON RUDD, On February 27 Secretary Shultz told the resolution, which expresses the sentiments U.S. Representative, Rayburn Building, Senate Foreign Relations Committee that the and priorities of the ROA membership, urges Washington, DC. Nicaraguans were training Brazilian guerrillas. the Congress to continue, extend, and fund DEAR ELDON: The Arizona State House of Representatives, Thirty-seventh Legisla­ The Brazilian Embassy in Washington request­ the new GI bill. In addition, this resolution ture, Second Regular Session, 1986, passed ed an explanation from the State Department, calls on the administration to abandon any ini­ House Resolution 2001, urging the United stating that there are no guerrillas in Brazil. tiatives to terminate this effective educational States House of representatives to approve The State Department was forced to apolo­ assistance program. the McClure-Volkmer Bill. gize. Assistant Secretary of State Elliot This resolution correctly recognizes the The members of the House of Representa­ Abrams wrote to the Brazilian Foreign Ministry direct and important relationship between a tives have asked me to forward the enclosed that: "I regret that this matter has caused con­ copy of this Resolution to you for your con­ strong national defense and the new GI bill fusion." The Brazilians accepted this explana­ which is encouraging more young men and sideration. Sincerely, tion and believed the case to be closed. women of ability to enlist in our armeci serv­ ROSE MOFFORD, Then on Sunday March 16, the President in ices. I commend the ROA for its strong state­ Secretary of State. his speech made a similar accusation about ment of support for the new GI bill and re­ Nicaraguan intervention in Brazil. The Brazilian quest that the text of this resolution be printed STATE OF ARIZONA, Foreign Ministry was forced to take the un­ in the RECORD. DEPARTMENT OF STATE. precedented step of calling in the United RESOLUTION OF THE RESERVE OFFICERS I, ROSE MOFFORD, Secretary of State, States Charge d'Affaires to demand an expla­ ASSOCIATION OF THE UNITED STATES do hereby certify that the annexed docu­ ment is a true, correct and complete copy of nation. Whereas, the FY85 Defense Authorization House Resolution 2001, passed by the Arizo­ Mr. Speaker, there is simply no excuse for Act ; and HOUSE RESOLUTION 2001 GOVERNMENT CRITICIZES GEORGE SHULTZ' Whereas, returning to VEAP after com­ A resolution urging the United States House REMARKS pleting the costly conversion to, and imple­ of Representatives to approve the BRASILIA, March 14.-Ruy Nogueira, Bra­ mentation of, the New GI Bill will cause McClure-Volkmer bill zilian Foreign Ministry spokesman, has la­ widespread confusion and turbulance in the Whereas, the McClure-Volkmer Bill would beled the statement by U.S. Secretary of American public, damage morale in the serv­ correct provisions of the Gun Control Act of State George Shultz that Nicaragua is train­ ices and recruiting programs; and 1968 which encroach on the rights of ~ ing guerrilla groups to reportedly operate in Whereas, deletion of the program will dealers and collectors and honest gun Brazil as "unfortunate, inappropriate, and leave the Reserve components with no edu­ owners; and irrelevant." cational incentive program: Now, therefore, Whereas, the McClure-Volkmer Bill was The spokesman reported that Elliott be it approved by the United States Senate and is Abrams, U.S. assistant secretary of state for March 19, 1986 EXTENSIONS OF REMARKS 5587 Inter-American Affairs, had sent a letter of ian counterpart an "explanatory lette?'lil SUPPORT FOR SECONDARY apology to the Brazilian Foreign Ministry. which he acknowledged that the U.S. ad- MARKET TAX AMENDMENTS Shultz told the U.S. Senate Foreign Rela­ ministration was aware that no guerrilla OF 1986 tions Committee that Nicaragua is training movements existed in Brazil. guerrilla groups to operate in Brazil, Chile, Police in Rio de Janeiro, meanwhile, Ecuador, the Dominican Republic, Uruguay, seized a secret cargo of arms aboard a Pana­ HON. GUY VANDER JAGT and Venezuela. manian-registered freighter during the OF MICHIGAN Nogueira said: "There is no Nicaraguan weekend. The freighter, Nobistor, arrived in IN THE HOUSE OF REPRESENTATIVES intervention in Brazilian internal affairs." Rio from Buenos Aires and carried machine Shultz made his statement to a committee guns, revolvers, rifles and grenades. Wednesday, March 19, 1986 on 27 February, as he was requesting Con­ Mr. VANDER JAGT. Mr. Speaker, it gives gress' authorization to provide $100 million The crew of 10 Argentinians and eight for the Nicaraguan "contras." U.S. citizens who told local police they were me great pleasure to cosponsor with Con­ Vietnam War veterans working as mercenar­ gressman JAKE PICKLE the introduction of the The Brazilian Embassy in Washington has Secondary Market Tax Amendments Act of requested an explanation from the State ies, said the cargo was picked up in Argenti­ Department of Shultz' statements, the Bra­ na. First reports said the cargo was destined 1986 or "SECTA" a bill intended to clarify and zilian spokesman added. for the African country of Ghana. Police rationalize the tax rules governing the second­ Abrams has sent a letter to Brazilian For­ denied other reports that the arms were ary mortgage market. eign Affairs Under Secretary Gilberto Vel­ destined for Central America, possibly Nica­ This legislation is expected to make the loso, saying that "I regret that this matter ragua. prospect of home ownership attainable for has caused confusion." more Americans by making the secondary The U.S. official acknowledged in the mortgage market more efficient in its oper­ letter that the existence of the groups to ation, and thereby reducing mortgage interest which Shultz referred does not imply that rates. The legislation is intended to be roughly there are guerrillas in Brazil. REDUCING THE SOVIET UN revenue neutral in the aggregate. The Treas­ INCIDENT TERMED "'CLOSED" DELEGATION ury Department has estimated its impact as The United States has admitted having reducing revenues by approximately $100 mil­ improperly used Brazil's name. Therefore, HON. PHILIP M. CRANE lion for the 1986-90 revenue estimating the Foreign Ministry has regarded as closed period. Practically, it may actually raise reve­ the incident provoked by George Shultz' re­ OF ILLINOIS nue as the current state of uncertainty and marks that Brazilian guerrilla fighters were IN THE HOUSE OF REPRESENTATIVES confusion in this area of t'1e tax law is prob­ being trained in Nicaragua to see action in ably resulting in taxpayers generally taking po­ Brazil. Wednesday, March 19, 1986 sitions most favorable to them, thus, creating Itamaraty has received a letter noting Mr. CRANE. Mr. Speaker, President Reagan whipsaw situations for the fisc. Elimination of that U.S. Secretary of State George Shultz and his administration should be commended meant that Brazilians were being trained in this state of confusion is one of the primary Nicaragua, but not to see action in Brazil. for ordering the Soviets to reduce their diplo­ goals of the legislation in a way which is ad­ matic staff at the United Nations from the ministratively manageable for both taxpayers present 275 to 170 by April 1988. The Soviet and the Internal Revenue Service. [From the Washington Post, Mar. 19, 19861 staff is currently more than twice as large as PROBLEMS FACING THE SECONDARY MORTGAGE BRAZIL DEMANDS U.S. CLARIFICATION the next 2 largest-126 in the United States MARKET delegation and 116 in the Chinese delegation. Unfortunately, as a result of existing tax SALO PAULO, BRAZIL, MARCH 18.-Brazil has Arkady Shevchenko, the highest ranking rules, unnecessary inefficiencies exist in the demanded U.S. clarification of President Soviet ever to defect, was serving as a U.N. secondary mortgage market. In addition, there Reagan's statement during his televised ad­ Under Secretary at the time of his defection. is confusion among investors and issuers as dress Sunday night that Nicaragua's Sandi­ He estimates that fully one-third of all Soviet to the proper tax treatment of earnings gener­ nista government is aiding radicals in this diplomats are not diplomats at all, but spies. ated from mortgage-related securities. These country. And many other staff members also engage in problems are not attributable to any explicit Acting Foreign Minister Paulo Tarso espionage when the need arises. congressional or regulatory tax policy deci­ Flecha de Lima yesterday summoned the sions. Rather, they are the result of the appli­ U.S. Embassy charge d'affaires to request The Soviets have long maintained unjustifia­ cation of tax rules which inadvertently fail to clarification of Reagan's remarks on the bly large diplomatic staffs in Western democ­ take into account the unique characteristics of grounds that Brazil has had no internal se­ racies to further clandestine Soviet foreign curity problems since at least 1979, when Ni­ the secondary mortgage market, and, in par­ caragua's Sandinista government came to policy objectives. These objectives include ticular, certain innovative instruments which power. Guerrilla groups were effectively such activities as gathering military and te .;n­ have revolutionized the way we finance resi­ wiped out a decade ago. nological information, planting and disseminat­ dential mortgages in this country. Reagan said that Brazil, Colombia, Ecua­ ing disinformation in the media of the host THE IMPORTANCE OF MORTGAGE "SECURITIZATION" dor, Chile, Argentina, Uruguay and the Do­ country, and recruiting agents of influence Mr. Speaker, this quiet revolution is a result minican Republic were victims of Nicara­ from among the ranks of journalists, politi­ of what is called "securitization" or the proc­ gua's expansionist plans, because radical cians, and the military. groups from these countries received train­ ess of turning pools of small, individual, home ing, safe haven, false documents and, occa­ To further assist in this problem, I have in­ mortgage loans into marketable securities that sionally, weapons from the Sandinistas. troduced H.R. 77 to require diplomatic parity can be sold to capital market investors. The A spokesman at the U.S. Embassy in Bra­ between the United States and Communist percentage of home mortgage loans that are silia said that the Foreign Ministry request­ countries. This bill would limit the number of being "securitized" has grown from only 1 ed clarification of what the president had Soviet diplomats in this country to the same percent or 2 percent of new loan originations meant. The spokesman said the text did not in 1970 to almost 40 percent in 1985. As a imply that all the countries had received number of diplomats that the United States is permitted to send to the Soviet Union. This bill result, the growth of this securities market has the support from Nicaragua described by been phenomenal. In 1970, there were less would also apply to diplomatic immunities­ the president. than $1 billion of outstanding publicly issued any immunity that is not granted to our diplo­ The incident follows a diplomatic ex­ mortgage-backed securities. By the end of change between Brazil and the State De­ mats will not be granted to their diplomats 1985, there were almost $400 billion of such partment after Secretary of State George P. here. Shultz also mentioned Brazil as a victim of see:urities outstanding. This now represents a Nicaraguan terrorism in testimony to a for­ I believe that passage of this bill is in the market almost as large as the $472 billion of eign affairs committee on Capitol Hill on best interests of our national security and our outstanding publicly issued corporate bonds. It Feb. 28. diplomatic representatives stationed in Com­ is time the tax rules for this important market Elliot Abrams, assistant secretary of state munist countries, and I therefore hope that my were reformed to make economic sense and for Latin American affairs, wrote his Brazil- colleagues will join me in cosponsoring it. tax policy sense. 5588 EXTENSIONS OF REMARKS March 19, 1986 HOW MORTGAGE-BACKED SECURITIES WORK solely for tax purposes. An equity requirement year of tax reform. SECTA, in my view, pro­ A mortgage-backed security works by insur­ creates additional legal, accounting, and cap­ poses to revise a series of technical tax rules ing that the tax liability arising from income ital costs for the issuer which interfere wtih ef­ in an area where reform is long overdue, and generated from mortgage payments is im­ ficiency and prevent interest costs from drop­ where reform will provide demonstrable and posed on the investors in the security, rather ping as far as they otherwise could. Multiple palpable benefits for the ordinary citizen. than the financial institution acting as the class pass-throughs containing mortgages I believe we should take this unusual oppor­ issuer. Currently, this is generally accom­ could also qualify as mortgage investments for tunity to pass legislation that is not only good plished by using a tax-exempt or passthrough purposes of the various tax provisions requir­ tax policy, but good for the average American. investment vehicle, under the grantor trust ing thrift institutions or REIT's to invest in rules. It also can be done, though much less mortgages or real estate. Finally, if it were efficiently, by creating a taxable entity that possible to authorize this vehicle by legisla­ COUNTERING TERRORISM issues bonds backed by mortgage loans. The tion, we could provide detailed tax rules to bond approach is generally referred to as a ensure that there was neither overtaxation nor HON. BYRON L. DORGAN collateralized mortgage obligation or "CMO". undertaxation of investors in multiple-class OF NORTH DAKOTA As I stated earlier, the tax rules applicable mortgage related securities. IN THE HOUSE OF REPRESENTATIVES to these investment vehicles were developed A BILL TO FACILITATE MORTGAGE SECURITIZATION without attention being given to the mortgage­ The bill I am cosponsoring today with Con­ Wednesday, March 19, 1986 backed securities market, and were written gressman PICKLE is based on the technical Mr. DORGAN of North Dakota. Mr. Speaker, principally to deal with family trusts, and tradi­ recommendation of a group of tax lawyers yesterday as the House took the first of what I tional corporate obligations. Thus, using these and financial experts who worked throughout hope will be several steps to staunch the tax entities to securitize mortgages has led to 1985 to recommend solutions to tax-related rising tide of international terrorism. problems, confusion, and ambiguities that problems associated with the secondary mort­ The Omnibus Diplomatic Security and Anti­ were not foreseen when the rules were writ­ gage market, and to devise a more efficient, terrorism Act-H.R. 415-will help to protect ten. The purpose of this bill is to provide an multiple-class mortgage security. American diplomats and enable them to carry understandable, rational set of rules to govern Mr. Speaker, this legislation will address the out, without intimidation, our vital diplomatic this important activity. major problems inherent in the current tax law business. The bill carries a heavy price tag; INNOVATIONS IN THE MARKET through its four major provisions: but careful investment in more secure embas­ In June 1983, CMO's began to be used as First, the legislation will clarify the precise sies and improved counterterrorism capabili­ a vehicle for issuers to divide up a pool of method of computing original issue discount ties is one we need to make. long-term mortgages into multiple classes of for CMO's in a manner that ensures that issu­ So I rise in support of this timely legislation. short-term, medium-term, and long-term secu­ ers and investors are properly taxed on their I want to make the additional point, howev­ rities. Although there was still no active man­ economic income. er, that I don't support a fortress America ap­ agement as there is in a mutual fund, the mul­ Second, the legislation will permit CMO-like proach to foreign policy. The roots of terror­ tiple class approach provided long-term inves­ investment arrangements to be structured as ism are as varied as they are complex. We tors with protection against early redemption ownership interests in a passive, multiple must ready and steel ourselves to attack the ("call protection") while also taking advantage class, pass-through entity (referred to as a roots of terrorism and not just respond to its of the fact that interest costs for short-term collateralized mortgage security or CMS) with symptoms. In that regard I want to stress that obligations are often lower than for long-term strict rules designed to ensure that the our foreign aid program must stress food for obligations. As a result, the multiple class se­ amount, timing and character of income real­ the hungry, education for the illiterate, and curity has provided a way to answer some of ized by the investors is not reduced, slowed medicine for the sick. The extent to which the shortcomings of the single-class pass­ down, or otherwise modified to result in ad­ America aligns itself with progresive change, through vehicle with its restrictions on active verse revenue effects. instead of repressive dictatorships of either management. Third, the legislation will provide that invest­ the left or right, will largely influence how suc­ Over $30 billion in CMO's have been issued ments in the newly authorized CMS are treat­ cessfully radical terrorists can gain an audi­ in only 2112 years, a remarkable success story ed as investments in mortgages under the Tax ence. for a new investment vehicle. Unfortunately, Code. This will enable thrift institutions and In that same regard, I would also like to call however, there are still a series of tax and ac­ real estate investment trusts to invest in the my colleagues' attention to a savvy article counting problems facing issuers and inves­ new instrument and retain the tax advantages which sets forth some useful suggestions on tors in these securities which prevent the of investing in mor.gages. how to craft a counterterrorism response. CMO from being used to its greatest efficien­ Fourth, the legislation will provide for ex­ Article by Robert H. Kupperman follows. cy. In addition, there is a great deal of uncer­ panded information reporting on mortgage rs­ TERR0a1sM-WHAT SHOULD WE Do? tainty about how the original issue discount lated securities. This would improve taxpayer rules of the Tax Code apply to these obliga­ compliance and eliminate the potential for a tions. As a result, issuers and investors may whipsaw effect whereby issuers and investors There is only one area of broad agreement be overtaxed, or undertaxed, in comparison to take inconsistent tax 1eporting positions. about terrorism-the United States and its their true economic income. allies are against it, so much so we have "de­ Mr. Speaker, the Treasury Department has clared war" upon terrorists. Other than tru­ MULTIPLE-CLASS PASS-TH ROUGHS already indicated its desire for legislation in isms about the need for international coop­ Theoretically, a much more efficient vehicle this area, and supports a legislative solution of eration, no consensus has been established. than a CMO could be used to structure multi­ the type set forth in SECTA. By addressing In fact, few can agree upon a definition of ple classes of ownership interests in a pool of these significant tax and accounting problems, terrorism. But, we do know some of its char­ mortgages. However, proposed Treasury regu­ we will increase efficiency in the secondary acteristics. It is political extortion that em­ lations do not allow a pass-through vehicle to mortgage market, reduce mortgage interest ploys violence or the threat of violence; rates, and improve taxpayer compliance. such extortions are usually targeted against have multiple classes of ownership. If such a large nations. The usual goal is to destabi­ multiple class pass-through instrument were CONCLUSION lize, to make a democratic government authorized, mortgage bankers, commercial Mr. Speaker, my action in introducing this appear impotent and to amplify these ef­ banks, or other institutions could sell multiple important legislation is intended as the first fects through the electronic marvels of tele­ classes of ownership interests in mortgage step in a process to deal with a very compli­ vision. In sum, terrorism is theater. pools. If these institutions could "sell" mort­ cated area of the tax law. It is my hope that The recent hijacking of TWA 847 was a gages to investors in a pass-through vehicle introduction of this legislation will facilitate tragic episode, but as important, it was a they would not have to carry debt on their bal­ close examination of the proposed legislation major media event. If we have learned any­ thing from that incident at all, it is that ance sheets as required in the case of a to insure that it achieves its intended purpose. coping with terrorism is not a simple, CMO. In addition, because the pass-through To the extent changes are necessary to straightforward matter. It is a subject laden would not be classified as debt for tax pur­ achieve that purpose, I will welcome them. I with paradoxes and conflicting needs for poses, the issuer would not be required to am hopeful that we can proceed expeditiously sovereign machismo and human compas­ retain any "equity" interest in the mortgages with this legislation. It seems that this is the sion. March 19, 1986 EXTENSIONS OF REMARKS 5589 From the onset of the hijacking, the early Baader-Meinhoff Gang would boomer­ LIABILITY INSURANCE CRISIS: President of the United States faced a gut ang were they applied to Iran's Revolution­ LOCAL GOVERNMENT IS A decision from which there was no escape. ary Cells where tentacles are already in the "VICTIM" He had two basic choices-to guarantee the United States. safety and well-being of every hostage or, on strategic grounds, to accept the plausible The key to coping with terrorism must in­ HON. HENRY J. HYDE outcome of losing every hostage's life. clude an understanding of the values of the OF ILLINOIS This was the basic strategic decision, groups themselves as well as the goals of those remaining were tactical rescue or dip­ the sponsoring nations. While the Baader­ IN THE HOUSE OF REPRESENTATIVES Meinhoff Gang, and its successor

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