17206 EXTENSIONS OF REMARKS June 1, 1977 or indirectly, from any person subject to nizational entities within the Department; of residents of the United States residing regulation by the Department." shall each be headed by an Administrator in- By Mr. MEEDS: appointed by the Secretary at an Executive "(A) areas outside standard metropolit an Strike subsection (a) through (c) of sec­ Schedule level or a General Schedule grade statistical areas; and tion 302, page 77, line 15 through page 79, .not less than the level or grade for the chief "(B) areas within such areas which are line 4 and insert in lieu thereof the executive officer of each such administration unincorporated or are specified by the Bu­ following: in effect on the effective date of this Act. reau of the Census, Department of Com­ SEc. 302. (a) There are hereby transferred The functions and authority hereby trans­ merce, as rural areas;" to and vested in the Secretary all functions ferred to the Secretary shall be exercised Page 65, after line 20, insert the following and authorities of the Secretary of the In­ by the Secretary, acting by and through such new paragraph: terior under section 5 of the Flood Control Administrators. Each such Administrator (3) in the conservation and development Act of 1944 (16 U.S.C. 825s), and all other shall maintain his principal office at a place of energy resources, the energy needs of both functions and authorities of the Secretary located in the region served by his respective rural and urban residents shall be given of the Interior, and officers and components Federal power marketing entity. full consideration; of the Department of the Interior, with re­ (c) There is hereby created a separaite and Page 65, line 21, strike out "(3)" and in­ sert in lieu thereof " ( 4) ", and on page 66, spect to-- distinct Administration within the Depart­ ( 1) the Southeastern Power Administra­ ment of Energy which shall be headed by line 1, strike out " ( 4) "· and insert in lieu thereof "(5) ". tion: an Administrator appointed by the Secretary (2) the Southwestern Power Administra­ who shall serve at an Executive Schedule By Mr. ROUSSELOT: tion; level not less than the level held by the Page 129, after line 6, insert the following (3) the Alaska Power Administration; Bonneville Power Administrator on the effec­ new section: (4) the Bonneville Power Administration tive date of this Act; the functions and SEC. 719. Effective 90 days after the effec­ including but not limited to the authority authority transferred in paragraph (a) (5) tive date of this Act, all authority with re­ contained in the Bonneville Project Act of or (a) ( 6) of this section shall be exercised spect to the allocation of petroleum, petro­ 1937 (50 Stat. 731), as amended, and the by the Secretary, acting. by and through such leum products, or natural gas under the Federal Columbia River Transmission System Administrator; and the Administrator shall Emergency Petroleum Allocation Act of 1973, Act (88 Stat. 1376); establish and shall maintain such regional the Energy Supply and Environmental Coor­ ( 5) the power marketing functions of the offices as necessary to facilitate the perform­ dination Act of 1974, the Energy Polley and Bureau of Reclamation including the con­ ance of such functions. Neither the transfer Conservation Act, and the Natural Gas Act struction, operation, and maintenance of of functions and authority effected by sub­ which i;; transferred or delegated to, or vested transmtsfion lines and attendant facilities; section a ( 5) . of this section nor any changes in, the Secretary or the Federal Energy Regu­ and in cost allocation or project evaluation stand­ latory Commission shall terminate. The Sec­ (6) the transmission and disposition of ards shall be deemed to authorize the reallo­ retary shall, within 30 days after such ef­ the electric power and energy generated at cation of joint cos·ts of multipurpose faclli­ fective date, submit legislation to the Con­ Falcon D:i.m and Amistad Dam, international ties theretofore allocated unless and to the gress to conform such statutes to the pur­ storage reservoir projects on the Rio Grande, extent that such change is hereafter ap­ poses of the preceding sentence. pursuant to the Act of June 18, 1954, as proved by Congress. By Mr. UDALL: amended by the Act of December 23, 1963. By Mr.ROSE: Strike Section 302(d) (1) (C) and renum­ (b) The Southeastern Power Administra­ Page 114, strike out line 17 and insert in ber Section 302(d) (1) (D) and 302(d) (1) (E) tion, the Southwestern Power Administra­ lieu thereof the following: "life of the Na­ accordingly; and and the Alaska Power Administration shall tion, including a comprehensive summary of Strike Section 303 and renumber succeed­ be preserved as separate and distinct orga- data pertaining to all fuel and energy needs ing sections accordingly.

EXTENSIONS OF REMARKS DEPARTMENT OF ENERGY LEGIS­ gress." Hearings are now being held on barrel of domestic crude oil production. LATION SHOULD BE POSTPONED Mr. Carter's proposals and, hopefully, which means if our own arithmetic is cor­ additional hearings will soon be held on re:::t that you could decontrol au domestic crude 011 prices and still end up paying less recommendations presented by Members for oll than the federal energy bureaucracy HON. WILLIAM L. ARMSTRONG of Congress, including myself, and other costs. And one should keep in mind that the OF COLORADO interested persons. After we have evalu­ $10.6 billlon ls only the cost of the newly IN THE HOUSE OF REPRESENTATIVES ated the proposals and have made basic boring baby DOE. Think what it will cost energy policy decisions would be the when it grows up!" Wednesday, June 1, 1977 proper time to establish the agency But the truly ominous aspect of H.R. Mr. ARMSTRONG. Mr. Speaker, to­ needed to administer that policy. 6804 is the extent to which it will con­ morrow the House will consider H.R. Moreover, it is likely this new agency solidate unprecedented power over en­ 6804, legislation to create a Department will impose great costs on the Nation's ergy producers and consumers in the of Energy. consumers and taxpayers. I personally hands of one person. In a Nation whose On the surface, it is tremendously doubt that more Government regulation very essence is freedom, Congress should appealing to vote for a plan that might of our economy is the answer to the Na­ go slow in giving any person the kind of bring order out of the chaos which is our tion's energy shortage. Indeed, the avail­ power granted to the new Secretary of Federal energy establishment. And, I able evidence seems to indicate such Energy under this legislation: would like to accommodate President regulations have heavily contributed t~ Oil pricing and allocation, conserva­ Carter and to cooperate with his efforts the existing crisis and have created tion, coal utilization. strategic petroleum to reorganize the executive branch. I many economic dislocations and injus­ reserve, energy information, resource de­ feel the President is entitled to consider­ tices. So I would personally favor loosen­ velopment; able latitude in managing the Govern- ing existing regulations rather than cre­ Natural gas regulation, interstate ment. / ating new ones. wholesale electric rate setting, and hy­ But H.R. 6804 goes too far. It is no But fo return to the Practical question droelectric licensing; mere reorganization measure. No, it of cost. Today's Wall Street Journal R. & n. in fossil, nuclear, fusion, solar, represents a drastic change in long­ summed up the issue succinctly: geothermal and conservation-energy standing policy, and House action on this A Chevron statistician has been sizing up efficiency-uranium enrichment and pro­ legislation should be deferred at least for the $10.6 b1llion budget of the proposed new duction military applications and safe­ the time being. I would like t.o explain Department of Energy. For example, it is guards, environment and health re­ why: about double the value of all the oil the search; We are getting the cart before the U.S. imported from Saudi Arabia last year. It Power marketing functions-the power horse. Obviously, this Nation urgently exceeds capital and exploration expenditures marketing functions of Bonneville, Alas­ needs a coherent and responsible energy by the petroleum industry to find and pro­ ka, Southwestern, Southeastern Power, duce oil, gas and gas liquids in the U.S. in policy. President Carter has submitted a 1975. It exceeds by $800 m1llion the 1974 and Defense Electric Power Administra­ series of energy proposals which he him­ rrofits of the seven largest international on tion; and the marketing power by the self has rightly termed "one of the most companies; Chevron can't resist adding that Bureau of Reclamation-coal mine pro­ complicated • • • legislative packages those profits were described by a U.S. Senator duction research fuel date, production that a President has ever sent to Con- as "obscene". It is equivalent to about $3 a goals; June 1, 1977 EXTENSIONS OF REMARKS 17207 Naval Petroleum Reserves No. 1, 2, 3, powers requested by the President, would be and to all Amercans the following excel­ and Naval Oil Shale Reserves No. 1, 2, 3; a further major step toward converting our lent, well-timed, and perceptive message Pipeline valuation, pipeline rate set­ free-enterprise system into a corporate state. from which all of us can benefit: · ting; Mr. Speaker, let us reflect upon the [From the Chicago Tribune, May 28, 1977) Industrial energy conservation pro­ true implications of the Department of THE NEED FOR AN ELirE EDUCATIO::r gram; Energy legislation. (By Jchn R. Silber) New buildings energy efficiency stand­ This proposal has been formed to fit a The only standard of performance that can ards-program will continue to be car­ policy which awaits action from this su3tain a free society is excellent. It is in­ ried out through HUD; body. The President's energy package creasingly claimed, however, that excellence Comoetitive bidding among companies will take long hours of debate and dis­ is at odds with democracy; increasingly we for Federal leases, use of alternative bid­ cussion to hammer out. Rather than &re urged to offer a dangerous embrace to ding systems, production rates, due dili­ transferring powers from independent mere adequacy. gence requirements that mandate devel­ regulatory commissions to a new bu­ By this I do not mean that our perform­ opment of a lease within a certain time ance is necessarily becoming wor.se. In the reaucracy, inevitably subject to political sports in which precise comparison is pos­ limit, distribution of lease revenues; and, pressure, let us defer action on this broad sible we excel our predecessors with a con­ the authority to approve all economic powerful process which is a prelude to sistency and regularity that threaten to be­ terms and conditions of leases; the new energy program until we know come monotonous. Authority over electric utility mergers; the particulars of that program. Athletes have never run so fast, jumped so Authority to approve loans made by And by taking the time to do so, we high, or sunk so many baskets. Even as we the Agriculture Department's Rural will also permit time to develop safe­ recognize what appears to be our prevailing Electrification Administration for con­ guards over the power of the new De­ inabillty to teach most children to read and struction, opera tion, or expansion of partment and, hopefully, to avert the write, we reassure ourselves that educational utility plants, and a role in advising the opportunity has never been greater and that dangers of which Dr. Friedman and scienca and mathematics have never been Department of Transportation on auto­ others have so properly warned. taught more effectively. mobile efficiency standards; CQnsumer goods have been developed to A total of 20,000 employees and a $10.6 such a degree of sophistication, low cost, and billion budget. reliability that one can now buy for a few The S ~retary would not only be able THE NEED FOR AN ELITE dollars a tiny device whose capabilities were to contnl the energy we need to power EDUCATION unavailable 40 years ago in any size and at our economy and keep us working, but any price, the pocket calculator. he would also be able to control when we Our flight from excellent is different and HON. ROBERT McCLORY apart from this progress. It is profoundly get it; from whom we get it; at what philosophical. Out of a well-intentioned but price we get it: who can produce it; and OF ILLINOIS inept concern with equality of opportunity, from where they can produce it. IN THE HOUSE OF REPRESENTATIVES we have begun to reject anything that ex­ Exercising such control over energy is Wednesday, June 1, 1977 ceeds anyone's grasp. tantamount to holding hostage every Some might argue that it is our right to economic interest in the Nation. As John Mr. McCLORY. Mr. Speaker, a distin­ engage in this curious flight, and so it is, the Winger, Chase Manhatttan's vice presi­ guished educator, John R. Silber, presi­ right of free men to be fools. But do we have dent of Boston University, who is partic­ the rilive the mmtary"! "long hve, OF ILLINOIS and blindfold at any time. I was firmly general Vilas'', etc. After a 45 minute flight IN THE HOUSE OF REPRESENTATIVES chained to one of the bedposts in such a way we arrived at an airport somewhere near Wednesday, June 1, 1977 that I had to remain rigidly in a seated posi­ Sierra Chica. The beating continued while tion. I was interrogated a number of times we went down, the guards having been joined Mr. HYDE. Mr. Speaker, a recent col­ by different persons, on my political and re­ by army people with dogs and while we were umn by Jack Anderson and Les Whitten ligious beliefs, and on my connections with transported to prison. Once in here, we we;:e directed their readers' attention to Con­ several people many of them fellow scien­ striped naked for a. "medical check up" a:ud trol Data's pending sale of their Cyber 76 tists. forced through a. double file of guards that to It was on this boat, on hearing the names beat with sticks. computer the Soviet Union. of other prisoners being called, that I real­ The beating continued while we tried to This situation is not of recent vintage. ized that other nine members of the CNEA :i;:ick up our personal belcngings. One at the On December 28, 1973, one of the most were at the ESme place under detention. No time and nude we were made to run the dis­ farsighted and patriotic industrialists I fco:i or water was given to us. tance to the cell pavilion, about a hundred know, Mr. Gerald Gidwitz, chairman of After one or two d:iys, we were t:iken to meters from the main building. The floor the board of Helene Curtis Industries, :Cevoto Prison. I found out later from my was covered with small sharp stone3 and it Inc., wrote to William C. Norris, chair­ family, that during this whole period we had was probably here that two tees of my .right man of the board of Control Data Corp., been technically "kidnapped", since they foot were broken. We were waited at the couldn't obtain any information on my pavilion by about fifteen guards, and the expressing great concern about the trend whereabouts or even if I was still alive, from beatings continued while we were taken to in some elements of American industry the moment I was taken from the CNEA our cells. A few minutes afterwards, one by to heap our technological bounty upon building on April 1st. one, we were violently taken from our cells the S9viet Union. 2. THE CONDITIONS AT DEVOTO PRISON to the back of the pavmon and asked, among Mr. Gidwitz's letter states these con­ a shower of blows to pick our clothing, given cerns so very well that I want to share In Devoto we were all pl3.Ced under arrest an ice cold shcwer and brought back to our at the disposal of the Executive (PEN). In it with my colleagues, as well as his re­ cells. It was about 5:00 p.m. cent letter to me: this condition a. person can remain in jail In the process, I had not only two broken for an indefinite period of time, even without MAY 25, 1977. to~s. but also my front teeth beaten out and Hon. HENRY J. HYDE, any accusation being brought against him. my back was covered with sores. Dr. Mora.zzo, Up to the military coup, an individual under Oak Park, Ill. whom I was to see somedays later had two DEAR HENRY: I am enclosing a. copy of a PEN, had the constitutional right to leave broken ribs. The whole contingent were in the country into exile, but this right was newspaper article by Jack Anderson and Les similar or worse conditions. No medical at­ Whitten about the U.S. selling the Cyber 76 "suspended" by the military junta. In a tention was provided. Two days afterwards number of cases I met in Devoto, people were computer to the Russians. I began reading we were asked to sign a paper saying that about this as far back a.s December 1973, pl::l.ced under PEN after they had been dis­ the wounds had been self infiicted or we charged by normal judicial prccedures. when I became involved in correspondence would not be allowed visitors. with William C. Norris, the Chairman of the Political prisoners are placed into Devoto This sort of procedure during transfers of in the "high security ward". This is a. five Board of Control Data, who seems to have prisoners became standard, and I was a wit­ built up a very substantial business with the floor building, totally occupied by politic::i.l ness to reception of three other contingents. prisoners, from 100 to 120 people per fioor. Russians. At that time I complained that This means an average of five prisoners to a 4. CONDITIONS AT SIERRA CHICA PRISON the modern equipment he was selling would cell cf a.bout 2 by 3 meters, including a sec­ The conditions of political prisoners at enable the Russians not only to control in­ tor for the W.C. on the fioor. They are not Sierra Chica are even worse than at Devoto. dustry and manufacturing processes there ·• cnly very crowded quarters, but also very We were initially placed in isolation, one but that it would have substantial benefits po;:;r sanitary conditions. The food is ex­ prisoner to a cell. Because of the increasing in controlling their population and would be tremely poor, with almost no proteins, meat, number of prisoners, we were finally put two used for m111tary purposes. milk er cheese are seldom provided or hot at to a. cell (I would calculate between 1000 I am enclosing a copy of my original letter all. It was only in the last two months in y 1200 political prisoners are detained at of December 28, 1973. Subsequently, on Janu­ t Devoto that we were allowed to buy powder Sierra Chica.) . ary 29, 1974, I wrote him as follows: milk from the prison store. Prisoners are only allowed to go out of ". . . The situation is far worse than I Medical attention is almost nonexistent. their cells into one of the prison yards only thought it was. . i When one ls finally able to reach a prison for half hour, three times a week. They are "You obviously have the facts and draw I physician, one is usually "checked" through not allowed to lie down during the day and the wrong conclusions. Russia's large core of the cell bars and given an aspirin. A number they can only sit in the metal frame of the engineering talent is, has been, and will con­ of fellow prlsoners that had underwent tor- beds. They are allowed to buy one news- tinue to remain directed toward its main 17210 EXTENSIONS OF REMARKS June 1, 1977 objective and that ls world domination. This Interest rate, an 8.27 % constant retires the eration, a position he has held for the is evidenced by the fact that its major tech­ principal in twenty-five years.) past 27 years. nology and development are entirely in the Russian engineering development has The Jewish Federation of Youngstown military field or in related fields. Those areas almost all been in the military field. Russian is a functional federation and embraces where civilian technology can be used for plants, whether heavy-duty trucks, plastics, military purposes and where it hasn't been automobiles, and other items, depend upon various disciplines of the social work used so far, is because either the Russians exports to pay for the plants. Many plants practice, including social casework, com­ were too concentrated on their military tech­ call for the American company to take munity organization, and community re­ nology, or overlooked the importance and re­ products from the plants as payment. When lations. Its various departments include lationship of these other fields, or merely we are building a petrochemical plant and the Jewish Family and Children's Serv­ because of their cumbersome organization are taking plastics in payment, it ls non­ ice, Jewish Community Center, Jewish they could not develop all of these technolo­ sense. We would be better off building the Community :3elations Council, and the gies at once. plants here. Annual Jewish Federation Campaign. "Several years ago, I think lt was in 1966, We shipped them 164 of the submlniature ball bearing grinders that are only made in The Federation provides community when we made the first wheat shipments to planning, fund raising, and coordinating Russia we opened the fiood gates to European the U.S. The sole use of the 77 we have in business deals and technological transfers to this country are for bearings on the guid· services for the health, welfare, and so­ Russia. The present attitude of this admin­ ance system of the MIRV. cial group work and recreational needs istration and of companies like yours actually We ship computers. of the Youngstown Jewish community. stimulates competitions from European Perhaps, some enterprising entrepreneur Mr. Engel's activities include member comoanies.... " may try to get a license for our "clean" of the National Association of Social atomic explosives on the ground that there Apparently nothing that I have been able will be less permanent damage in the event Work, National Association of Jewish to write to Mr. Norris or say to anyone else we get into a shooting war. Center Workers, American Civil Liber­ has had any effect on the sale of the Cyber 76 The enclosed Washington Report of June ties Union, Ohio State Alumni Associa­ to the Russians, which wlll give them a 1973 is llluminating. tion. National Conference of Jewish Com­ quantum jump in technology as well as pro­ Don't you think this whole program of munal Service, Academy of Certified So­ vide them with the instrument that, in my helping Russian tndustry should stop until cial Workers. Association of Jewish Com­ judgment, would be extremely dangerous for we have Russian policy changes that no them to have as far as we are concerned. munity Organization Personnel, and longer condone stopping our oil, inciting American College of Nursing Home Ad­ If there is anythip.g you can do to stop this wars, and imprisoning anyone who raises a nonsense of assic;ting in the building of the voice objecting to practices that are re­ ministrators; member of the board of Russian industrial complex to support their pugnant to free people? Educational Opportunity Youngstown, military, I wish you'd do it. A couple of years Sincerely yours, Inc.; Mahoning County Council on Ag­ ago I talked to people in the government who GERALD Gmwrrz. ing-currently serving as treasurer; and were afraid to raise their voices against these Kent State University Hillel-Jewish transactions. It appears that they have not Services Center. stopped with the new· administration. Sincerely yours, Mr. Engel has also been a member and GERALD GIDWITZ, GUARDIAN OF THE MENORAH TRIB­ chairman of various committees of the Chairman of the Board. UTE BANQUET TO HONOR STAN­ Eastern Ohio Chapter of the National LEY ENGEL OF YOUNGSTOWN, Association of Social Workers, serving HELENE CURTIS INDUSTRIES, INC. OHIO as its president from 1962 to 1964. A for­ December 28, 1973. mer member of the board of the local Mr. WILLIAM C. NoRRIS, health and welfare council, he has been Chairman of the Board, HON. CHARLES J. CARNEY Control Data Corp. involved in many other community en­ OF OHIO Minneapolis, Minn. deavors, such as: Executive secretary of DEAR MR. NORRIS: The other day I was IN THE HOUSE OF REPRESENTATIVES the Youngstown Fair Employment Prac­ having a conversation with Ben Schemmer Wednesday, June 1, 1977 tices Committee, which helped bring of the Armed Forces Journal about the prob­ about the enactment of a local fair em­ lem of the United States industrializing Mr. CARNEY. Mr. Speaker, on Sun­ ployment practices ordinance, and chair­ Russia and its effect, not only upon our day, June 5, 1977. the eighth annual man of the first social service division present trade with Russia, but the effect" on B'nai B'rith Guardian of the Menorah of the Greater Youngstown Community our world trade when these construction Award will be presented to Mr. Stanley Chest Campaign. programs come to fruition. Ben thought that Engel. - In addition, Mr. Engel was formerly a your letter to him of December 19 would be The B'nai B'rith Guardian of the Me­ member of the board of directors of the of great interest to me and I agree with him. norah Award is given each year to the Anshe Emeth Temple, and a member of He sent me a copy, and I am taking the outstanding individual who has shown, the Inter-racial Committee which pre­ liberty of writing to you about it. through service and commitment, a de­ In the conclusion of your letter, you re­ ceded the Mayor's Human Relations marked that the USSR has many more sci­ votion to youth and the community. In Committee. He has made numerous spe­ entists and engineers than do we. I was in conferring the award on Stanley Engel, cial surveys and studies, including a Russia in 1958 and there was practically no B'nai B'rith is recognizing Mr. Engel's study on the needs of the Jewish Aging visible evidence of Russian scientific knowl­ many years of distinguished service to in Youngstown, which led to the found­ edge, either on the streets, in the stores, in the city, State, and Nation, through his ing of Heritage Manor, the Jewish Home factories we were allowed to visit, nor in pri­ active participation and leadership in a for the Aged. vate homes. In the conversation that I had wide range of civic, cultural, educational, Stanley Engel is married to the former with the woman in charge of the construc­ religious, and service associations. Eleanor Moranz. The Engels have three tion materials exhibit in Moscow, I was told Born in Youngstown, Stanley Engel that most of the steel produced in Russia did children: Alan S. Engel, MSQ, campaign not go into the construction industry or into was raised in a Cleveland Jewish orphan director of the St. Louis Jewish Federa­ consumer goods, but went into their military home. He attended Ohio State Univer­ tion; Miss Susan Engel, a graduate of the program. sity and earned a bachelor of science de­ University of Massachusetts in medical Russian engineering talent also all goes gree in social administration in 1939. Fol­ technology and now associated with into their military program. If we furnish the lowing his graduation from Ohio Atate, Photo Plate, Inc., a division of the Dow consumer goods technology, we not only he returned to Youngstown and became Chemical Corp., and Brian Jay Engel, a build a competitor in the world markets, but the first full-time social caseworker en­ we reduce the internal pressure from the freshman at Ohio University. Russian consumer to divert talent in that gaged by the Jewish Federation of The funds raised from the Guardian direction. Youngstown. In 1943, he became execu­ of the Menorah Tribute Banquet will be Industrial power is the key to military tive director of the Tri-State Jewish Wel­ donated to the B'nai B'rith Youth Serv­ power. We ship them whole plants financed fare Council, with headquarters in Pitts­ ices Appeal, which supports Hillel Foun­ by the Ex-Im Bank at subsidized interest burgh, Pa. Two years later, he again re­ dations on 290 college campuses, B'nai rates tha~ are the equivalent of a gift. (You turned to Youngstown, this time to serve B'rith youth organizations, serving about are aware that with a mortgage at a 7% as executive director of the Jewish Fed- 35,000 teenagers, and Career Counseling June 1, 1977 EXTENSIONS OF REMARKS 17211 Services, which provide youth with col­ In sum, he is both a. well-trained tech­ Church, Garfield, N.J., on November 17, lege placement and job search assistance. nician and party man personally respon­ 1973. B'nai B'rith is the oldest and largest sible to Brezhnev and !n his new position Mr. Speaker, I appreciate the oppor­ Jewish service organization in the world, will enhance Brezhnev's leadership role. tunity to present this profile of a dis­ with representation in over 40 countries tinguished man of God who has dedi­ of the free world and a membership of cated his life's purpose and fulfillment over half a million men, women, and to helping others and guiding them in youth. OUR NATION SALUTES REV. EUGENE their pathway of life. His comfort and Stanley Engel has demonstrated his KOWALSKI OF NEW JERSEY, ES­ aid which he unselfishly and willingly commitment to the well-being of his TEEMED PASTOR, COMMUNITY gives to those in need and those who seek fellowman by serving in virtually every LEA::>ER, AND GREAT AMERICAN his spiritual guidance has truly enriched facet of community life. Because he has our community, State, and Nation. given so much of his time and energy to Mr. Speaker, as Father Kowalski cele­ help others, it is altogether fitting and HON. ROBERT A. ROE brates the 35th anniversary of his ordi­ proper that this year's Guardian of the OF NEW JERSEY nation to the priesthood I know that you Mehorah Award be presented to him. IN THE HOUSE OF REPRESENTATIVES and all of our colleagues here in the Con­ Mr. Speaker, I wish to extend my sin­ Wednesday, June 1, 1977 gress will want to join with me in ex­ cere congratulations to Stanley Engel tending our warmest greetings and f e­ and his family on his fine achievement. Mr. ROE. Mr. Speaker, on Saturday, licitations for the excellence of his serv­ When his many friends join in honoring June 4, the residents of my congres­ ice to his church, our Nation, and all him, I hope to be there. sional district and State of New Jersey mankind. We do indeed salute the Rev­ will join with the congregation of St. erend Eugene Kowalski, esteemed pastor, Stanislaus Kostka Roman Catholic community leader, and great American. Church, Garfield, N.J., in honoring an KONSTANTIN VIKTOROVICH RUSA­ outstanding clergyman, distinguished KOV, BREZHNEV'S NEW MAN IN citizen, and good friend, the Reverend THE POLITBURO Eugene Kowalski, in celebration of the FOREIGN OIL TANKERS TAKE 35th anniversary of his consecration into AWAY U.S. JOBS the Sacrament of Holy Orders. HON. LARRY McDONALD Father Kowalski has maintained the OF GEORGIA highest standards of ex'!ellence through­ HON. JOSHUA EILBERG IN THE HOUSE OF REPRESENTATIVES out his lifetime in his many, many OF PENNSYLVANIA Wednesday, June 1, 1977 achievements, so unselfishly and willing­ IN THE HOUSE OF REPRESENTATIVES ly dedicated to the betterment of man­ Wednesday, June 1, 1977 Mr. McDONALD. Mr. Speaker, last kind. His exemplary service to God and Mr. EILBERG. Mr. Speaker, this Con­ week the press featured the dropping of country are mirrored in the happiness Podgorny from the Soviet Politburo and gress will shortly be called upon to deal and security he has provided our people with tanker cargo preference legislation l::'arely mentioned the promotion of Ru­ in his steadfast quest for the religious sakov to that vacancy. Rusakov for at that would require that a significant per­ and cultural enrichment of all of our centage of America's oil imports be car­ least the past 3 years has been a personal citizens, young and adults alike. assistant to Brezhnev and their associ­ ried on U.S.-flag ships. ation may date back to at least 1960. Mr. Speaker, there is so much that can As things now stand, U.S.-fiag tank­ Rusakov is no youngster, having been be said of the love, affection, and rev­ ers carry only about 4 percent of our born in 1909. erence with which Father Kowalski is imported oil, and this contributes to the In 1930, he graduated from the Kali­ held by all who have had the good for­ critical unemployment of Americans. nin Polytechnical School in Leningrad tune to know him. He was born in Bay­ Thousands of jobs aboard ships, in ship­ and from 1930-39 held various engineer­ onne, N.J., tm September 20, 1915, one of building and in service industries would ing positions in construction trusts in five sons of Ignatius and Janina-nee be generated for American workers by Leningrad, Leninakan, and Irkutsk, re­ Hilinski-Kowalski. From 1930 to 1934 the enactment of tanker cargo prefer­ upon his graduation from local public ence legislation. spectively. From 1946 until 1957, he schools in his hometown of Bayonne, he held various positions in the fishing in­ attended St. John Kanty Preparatory The U.S Maritime Committee to Turn dustry of the Soviet Union in adminis­ School in Erie, Pa. From 1934 to 1936 the Tide has put this employment situa­ trative positions. In the period from 1948 he continued his education at St. John tion into perspective. Mr. Speaker, and through 1952, there is a r;ap, but he may Kanty College, also in Erie. I am placing in the RECORD at this point have been in the fishing industry during the text of a factsheet which they have that time also. Father Kowalski received his bachelor prepared on this subject: of arts degree from Seton Hall Univer­ In 1958, he assumed his first diplo­ FOREIGN OIL TANKERS TAKE AWAY U.S matic position as counselor to the sity in 1938. He then attended Immacu­ JOBS U.S.S.R. Embassy in Poland. He left this late Conception Seminary in Darlington, Currently. without cargo assurance, U.S job in 1960 for a position in the all­ N.J., and completed his theological stud­ shi?building potential is not being realized powerful Central Committee where he ies at Catholic University, Washington, At the end of 1978, the U.S. shipbuilding st£.yed until 1962. In 1962, he again re­ D.C., receiving his STL-licentiate in industry will have only 14 merchant ships sacred theology. on order. turned for a short stint in the diplomatic The shipbuilding industry is an especially service as Amb~ador to Mongolia for He was ordained to the holy priest­ effective job-generating industry, which can a year. hood on May 30, 1942. As a young curate contribute significantly to the Administra­ In October 1964, Rusakov was made a he served for 3 years at Our Lady of Czes­ tion's program to reduce unemployment. De­ deputy department head in the Central tochowa. Jersey City, N.J. He then pendent on private investment. the ship­ Committee and he has been in the Cen­ served at Immaculate Conception Parish building industry recruits unskilled persons, tral Committee apparatus e'\"er since. in Secaucus, N.J., for 4 years and at St. and provides training in sk1lled trades. One key position he held was chief of the Ann's Parish in Jersey City, N.J., for the The industry generates 33 man years of Department for Liaison with Foreign fallowing 2 years. During the next 17 employment for each $1 million of ship­ years he served at St. Adalbert's Parish building contracts, one of the highest ratios Communist Parties, a position he may in the manufacturing sector of our economy in Elizabeth~N.J. now reassume in place of the recently By contrast. each $1 million of aircraft con­ demoted Katushev. On September 14, 1968, Father Kowal­ tractc; will generate only 19 man years of In January of 1966, he accompanied ski was appointed pastor of St. Bene­ employment. Brezhnev to Bulgaria, Rumania, and dict's in Newark, N.J., where he served Approximately 31 % of the shipyard work Czechoslovakia and has seemed to be in until his appointment as pastor of St. force and 17.5 % of shipboard crews are mem­ Brezhnev's shadow ever since. Stanislaus Kostka Roman · Catholic bers of minority groups, substantially above CXXIII--1083-Part 14 17212 EXTENSIONS OF REMARKS June 1, 1971 the 11 ~c, national average of the minority rect the injustices of the past, the contem­ at what now comprises the FBI's charter. work force. porary e!fects of which are very real and That charter includes existing law and a It is estimated that each additional 1 % pressing. of total imports carried by U.S. flag tankers In its recently released Report No. 32, series of guidelines issued by the office of could result in shipyard employment of 6,- "The Armenians," the respected Minority the Attorney General. We will ask the 864: man years-and in shipboard employ­ Rights Group (London) describes the geno­ Department of Justice and the Federal ment of 5,610 man years. cide of the Armenians in Turkey in 1915-18 Bureau of Investigation to share with the It's time to turn the tide and generate as a "national catastrophe compared to that subcommittee the effects of and prob­ m ore U.S. jobs in shipbuilding, sea-going suffered by the Jews., and one which "threat­ lems with the domestic security guide­ and on-shore labor, and support service in­ ens to become more and more of a live issue." lines that have occurred since they were dustries. At the core of this indeed very live issue is promulgated in the spring of 1976. These the attitude of the present-day Turkish Gov­ ernment, which continues to deny or distort views should provide valuable insight THE ANNIVERSARY OF THE ARME­ the well-known and extensively documented into the problems encountered by those NIAN GENOCIDE; A CALL TO CON­ truth-that 1.5 million Armenians were charged with working within and inter­ SCIENCE slaughtered and hundreds of thousands preting those orders. driven from their home.:; in a cold-blooded After we have heard from the Depart­ and pre mediated act designed to remove ment of Justice we plan to hear from a HON. ROBERT F. DRINAN them forever from their ancestral lands. variety of interested persons and orga­ Today, in sharp contrast to post-war Ger­ nizations with regard to the proposals OF MASSACHUSETTS man behavior, a major boulevard in the IN THE HOUSE OF REPRESENTATIVES Turki;h capital is named after Talaat Pasha, for a charter. The General Accounting Office will report to the subcommittee Wednesday, June 1, 1977 the chief architect of the mass slaughter, and Istanbul even boasts a monument to this summer on their followup study of Mr. DRINAN. Mr. Speaker, recently the arch criminal. In fact, in recent propa­ domestic security cases now pending in the world observed, all too quietly, the ganda. mailings from Ankara to U.N. dele­ the FBI field offices. The GAO will have 62d anniversary of the genocide of 1.5 gates, U.S. Congressmen and others, the recommendations as to additional legis­ million Armenians in Turkey. This atroc­ Turks go so far as to attempt to picture the lative efforts which should be made to victims as the pet>petrators. ity remains unredressed. The Minor­ Armeni.:i.n frustration and indignation­ define the FBI's proper role in our ity Rights Group, based in London, de­ especially in the face of Turkish distortions society. scribed the genocide of the Armenians in and denials-have led to ren ewed determi­ Our goal is a positive definition of the Turkey :n 1915-18 as a "national catas­ nation to struggle to regain Armenian ter­ duties of the FBI in those areas which trophe compared to that suffered by the ritorial and national rights. Recent develop­ have caused harm to our citizens and dis­ Jews'' during World War Il. Sadly, it ments, which prompted the Sulzberger piece, credit to the FBI. We assume the co­ is a catastrophe which the world prefers indicate that some Armenians have appar­ operation of all concerned will enable us to ignore. ently :ost faith in the willingness or capacity to attain this goal. of the world's governments to listen to, or On Memorial Day, May 30, the New act on, peaceful appeals. York Times published on its editorial However, the Armenian National Commit­ ANDREW R. A THENS page a letter on this subject by Mr. K. tee will continue to press the Armenian case Donabedian, of the Armenian National in every appropriate forum.-K. DoNABEDIAN, Committee in Boston. Mr. Donabedian Armenian National Committee, Boston, M:i.y HON. MARTY RUSSO 14, 1977. eloquently called for more than token OF ILLINOIS memorials. He called upon the Turkish IN THE HOUSE OF REPRESENTATIVES Government to offer some kind of be­ lated acknowledgment of guilt; to offer HEARINGS ON FBI CHARTER Wednesday, June 1, 1977 some form of restitution, even if in a Mr. RUSSO. Mr. Speaker, Mr. Andrew largely symbolic sense, to the families HON. DON EDWARDS A. Athens, Chicago industrialist, presi­ of the victims of the genocide; and to OF CALIFORNIA dent of the United Hellenic American cease its efforts to deny the nature and IN THE HOUSE OF REPRESENTATIVES Congress and layman of the Greek Or­ scope of this infamous massacre. thodox Church, was selected last month I commend to the attention of my col­ Wednesday, June 1, 1977 as one of eight Americans to be honored leagues Mr. Donabedian's letter to the Mr. EDWARDS of California. Mr. as typifying the "high ideals reflected by New York Times, which follows: Speaker, on June 6, 1977, at 9:30 a.m., persons who entered the United States as [From the New York Times, May 30, 1977] the Subcommittee on Civil and Constitu­ immigrants via Ellis Island or descended OF TURKEY AND AN ARMENIAN ANNIVERSARY tional Rights of the Committee on the from such persons." To THE EDITOR: Armenians throughout the Judiciary will begin a series of hearings In ceremonies held at Ellis Island in world recently observed the 62d anniversary on creating a charter for the Federal Bu­ the harbor of New York, on April 30, the of t he genocide of 1.5 million Armenians in reau of Investigation. Past and present award from the Restore Ellis Island Com­ Turkey. In the p1st, these manife:;tations of Attorneys General, the Director of the mittee was presented to Mr. Athens by collective grief and outrage have been treated Prof. Peter Sammartine of Fairleigh by the media simply a.s memorial activities FBI and numerous concerned individ­ designed to "remind the world" in hopes of uals agree that a statutory foundation is Dickenson University and chairman of deterring future genocides. They represent essential for the future of the FBI and the committee. much more than that. for the protection of our citizens' rights. I am privileged to count Andy as a per­ In this respect, C. L. Sulzberger's recent The approaches to the creation of a sonal friend and I know of no other per­ column "De.:i.dline for More Terrorism," statute differ, but those differences son who more deserves recognition for which deals with recent developments on the should be resolved by a thorough con­ his service to humanity and to civic af­ Armenian question, is a welcome sign that sideration of the objectives of such legis­ fairs. He is a fine and decent human a prominent journ.:i.list recognizes there is m -.:: re to the Armenian question than mere lation. The statute must be drafted in a being whose character and integrity are memorials. Particularly .significant and in­ \Vay that those subject to it can under­ as strong as his generosity and warmth. dica tive of his refreshing insight into the stand its provisions and not require con­ I would like to quote now from the real issue is his suggestion that "indeed, it stant interpretation of its meaning from news article on the event that appeared would be advisable even at this late date for higher authority. We must not attempt in the Hellenic Times the week of the Turkish republic to offer some kind of to recodify existing laws and penalties May 19: bel.1tec:J. guilt acknowledgement, an apologet­ as some proposals suggest. The language In presenting the award, Prof. Sammar­ ic restitutional act plus compensati::m to de­ must avoid symbolism and rhetoric; the tine . . cited Athens' altruistic and philan• t::cendants of survivors of the gruesome events thropic activities and his many citations for that occurred, as Konrad Adenauer and Willy duties of the agents must be described in a manner that enables the enforcement his dedication to •the church. to civic affairs. Brandt did for Israel." Perhaps it is not so and for his leadership in youth program!' much that our message finally got through of existing and future Federal laws while Reference was also made to his military serv­ but that some::me was willing to acknowledge allowing the necessary flexibility to deal ice in the U.S. Army, his participat ion on publicly that Turkey doe.:; have a respon­ with a limitless variety of fact situations. Sen. Percy's Committees: Alliance to Save sibility to take some positive steps to cor- To begin this process we will first look Energy and the Senatorial Advisory Commit- June 1, 1977 EXTENSIONS OF REMARKS 17213 tee and his extensive leadership in industry ward. It would require the Defense De­ is needed to correct an unfair and arbi­ a.s president of the Metron Steel Corporation partment to conduct systematic cost­ trary procedure in the civil service pro­ in Chicago, which he founded in 1950 and effectiveness audits prior to entering into gram, the downgrading of Federal jobs. which is one of the largest independent steel The procedure of downgrading came service centers in the midwest. any contract over $100,000. In an emotional response, Athens thanked This review must include a simple cost­ about a number of years ago when it was the committee for the award and recalled comparison between contractor and in­ discovered that Federal employees, all that his late father passed through Ellis Is­ house personnel, as well as a review of doing the same job but in different agen­ land in 1904 in search of "precious free­ the impact that any proposed contract­ cies, were being paid different salaries. In doms-political, religious, and freedom from ing out action would have on individual an attempt to develop a single coordi­ want." or unit retraining of military personnel nated pay system, many jobs were down­ I am deeply proud of Andy and I know or on mobilization readiness. H.R. 6188 graded; that is, the grade level for that my colleagues join with me in commend­ has an exempti-on clause which would particular job was reduced. ing him for his unselfish contributions v.;aive cost-effectiveness audits on those While I realize that we want to insure to those around him and in congratulat­ activities where a sufficient record al­ equal pay for equal work, I am concerned ing him on attaining such a prestigious ready exists with regard to cost compari­ that this procedure produces a serious award. son and defense readiness. effect on the morale of the employees Finally, H.R. 6188 would establish a involved and will certainly hamper their requirement for post-contract award job performance. CONTRACTING OUT audits to compare a contractor's promise The measure I am proposing would with his performance. All too often, I am give a Federal agency 3 years to down­ afraid that contractors bid low to win a grade a job classification. After that, an HON. NORMAN D. DICKS contract, knowing that they may well incumbent employee would be protected OF WASHINGTON become the sole source for such services. against having this classification IN THE HOUSE OF REPRESENTATIVES Suhsequent contracts naturally rise, as changed. Under the current procedure. a civil Wednesday, June 1, 1977 the alternative of reverting to Civil Serv­ ice personnel appears disruptive and un­ service employee is subject to a lifetime Mr. DICKS. Mr. Speaker, the subject attractive. It seems to me that the Gov­ of uncertainty, never knowing when he of contracting out has received increas­ ernment should initiate post-contract might be notified that his grade will be ing congressional attention as of late, as audits to make certain that its interests lowered. My bill would guarantee him a can be expected with the Office of Man­ are truly served by contracting out sense of security after he has performed agement and Budget's increased empha­ decisions. successfully at a particular job for a sis on performing work by contractors In my view, this legislation is needed period of 3 years. rather than by Government personnel. because of deficiencies in current prac­ I believe that this legislation is neces­ I have no problem with contracting tice. The key policy documents on con­ sary and I hope that Congress can take out-if such action makes sense in terms tracting out are OMB Circular AX76, expedient action to rectify the current of saVing the taxpayer's dollars, and in and the implementing Department of downgrading practice, and I believe that the case of defense contracts, if such ac­ Defense directives. As difficult as it may my bill is fair and equitable to both the tion does not impair mobilization readi­ be to believe, neither the OMB circular employee and the agencies involved. ness or individual or unit retraining. Un­ nor the implementing directives by the fortunately, the recent spate of con­ services call for systematic cost-effective­ tracting out has raised questions in both ness analyses. NORTH BAKERSFIELD RECREATION areas. In the case of the Navy, for example, AND PARK DISTRICT For this reason, I believe the House of cost effectiveness analyses for on-going Representatives-!ollowing the lead of pr:>grams earmarked for contracting out the Armed Services Committee-acted have been extremely shallow, according HON. WILLIAM M. KETCHUM wisely in passing the fiscal year 1978 de­ to the GAO. In the case of new starts, a OF CALIFORNIA fense authorization bill. This bill con­ cost-effectiveness study is discretionary, IN THE HOUSE OF REPRESENTATIVES tains two provisions which, in my view, based on the views of the Assistant Sec­ w111 eventually lead toward a more ra­ retary for Installations and Logistics. In Wednesday, June 1, 1977 tional and justifiable approach toward my judgment, these procedures do not Mr. KETCHUM. Mr. Speaker, it is my contracting out. First, this proposed leg­ provide the data base on which s·::>und great honor to bring to the attention of islation would, in effect, place a mora­ contracting out decisions can be made. my colleagues the dedicated public serv­ torium on contracting out until the Sec­ Similar situations exist within the Army ice of the North Bakersfield Recreation retary of Defense reports back to the and the Air Force. and Park District. Congress by December 31, 1977. This By reintroducing H.R. 6188 today, I This year we celebrate with the dis­ study would "evaluate the methods for hope to call attention to this state of af­ trict its 20th year of existence. Dul'ing its conducting cost analyses and identifica­ fairs. I wish to underscore the point that service to the community it has opened tion of those mission essential functions H.R. 6188 has no bias for or against con­ its doors to the young and old alike and which do not lend themselves to per­ tracting out. It merely directs the affect­ has effectively instituted innovative proj­ formance by private contractors." ed agency to prepare the statistical evi­ ects in the area of recreational program­ Second, the House agreed to give the dence from which valid contracting out ing. Today the benefits of the district ex­ Secretary of Defense a 3-percent leeway decisions can be made. I hope more of my tend to over 35,000 people in an area of in exceeding civilian personnel ceilings colleagues will Join in cosponsoring this 125 square miles. imposed by the Congress. In the past, bill. In addition, the district has pioneered civilian personnel ceilings-and not cooperative agreements with county de­ cost-effectiveness-have proven to be a partments, area school districts, prime motivating factor behind con­ MEASURE INTRODUCED TO COR­ churches, and community organizations. tracting out decisions. Giving the Secre­ RECT UNFAffi CIVIL SERVICE Through this effort the districts' pro­ tary of Defense a 3-percent leeway can DOWNGRADING grams have been geared to promote help to ease this pressure. I hope that the values of personal initiative as well as House conferees on the fiscal year 1978 community pride. defense authorization bill will stand firm HON. HENRY B. GONZALEZ The foundation of the district has on both contracting out initiatives. OF TEXAS grown into an impressive unit of three There is still much to be done on this IN THE HOUSE OF REPRESENTATIVES swimming pools, five wading pools, two issue, however. Today, I am reintroduc­ community centers, one gymnasium, five ing a bill on contracting out, H.R. 6188, Wednesday, June 1, 1977 programed parks, three undeveloped with 14 cosponsors. This proposed legis­ Mr. GONZALEZ. Mr. Speaker, I am park sites, and an office complex. Over lation is very simple and straightfor- introducing a measure today that I feel 400,000 participant sessions are held each 17214 EXTENSIONS OF REMARKS June 1, 1977 year with an annual participation growth and dominated by big corporations. lem of reliance on expensive equipment. rate of 4.22 percent. Third and most important, the act set Dr. Harry Thomason, for example, had At the forefront of this outstanding up a Federal effort to demonstrate cur­ given several Congressmen a tour of his record has been a highly competent and rently available solar systems in order to self-designed solar home. They went on professional staff which continues to generate consumer interest in purchas­ to push Public Law 93-409 through the serve with great distinction. Under the ing them. Finally, the program was to House, citing the influence of their visit supervisory framework of the district provide information for the development to Dr. Thomason's home. Thomason a Board of Directors governs without of consumer protection standards and wrote that 0 the policy of both HUD and compensation to a community which ex­ purchase incentives. On paper, the pro­ ERDA allows Government funds only for tends into the area of Oildale, Fruitvale, gram appeared capable of creating a the 'incremental' cost of solar, over and Norris, and Rosedale. The fulltime staff large market for solar equipment by the above the cost of conventional." Thus, has distinguished itself in maintaining end of the decade. contractors get bigger grants for more the excellence of the recreational and Performance has lagged far behind expensive units. Solar systems which per­ park system. the promise of the program. The De­ form as well but cost less are closer in Mr. Speaker, I consider it a personal partment of Housing and Urban Devel­ price to conventional units; hence con­ privilege to commend the North Bakers­ opment was assigned to administer the tractors get smaller grants if they pur­ field Recreation and Park District for its residential demonstration section of the chase them. This policy was not in the outstanding service. The work which it program. The Energy Research and De­ original legislation; it was adopted by has accomplished throughout these years velopment Administration was given re­ HUD and ERDA. Dr. Marvin claimed in should stand as a model to similar com­ sponsibility for commercial demonstra­ his letter that ERDA gave priority to munities across the country. tion and for research and development. "technical performance and potential re­ Both agencies relied on high-priced so­ liability" in equipment selection for solar lar systems when equally efficient, cheap­ demonstrations. . er units were available. With a fixed Calvin D. MacCracken, president of HOW POOR ADMINISTRATION IS CALMAC Manufacturing Corp., replied KILLING THE SOLAR HEATING budget, this resulted in fewer demon­ stration sites. Both agencies tended to with the suggestion that "it would be AND COOLING DEMONSTRATION very easy for ERDA to simply state in the PROGRAM favor big business in making grants. HUD made grants available only to de­ solicitation that costs must be under $2 velopers for units not yet sold. per square foot." Unfortunately, such HON. MAX BAUCUS And ERDA played down the heating easy solutions are often overlooked. OF MONTANA and cooling program in its budget re­ While it is true that a large portion of IN THE HOUSE OF REPRESENTATIVES quest in favor of work on the more re­ demonstration project awards went to small business concerns, this is no sur­ Wednesday, June 1, 1977 mote solar electric applications. prise since even the largest contractor At the end of this statement I have at­ Mr. BAUCUS. Mr. Speaker, the solar usually qualifies as a small business by tached a copy of my letter to Dr. Henry virtue of the nature of the contracting energy section is perhaps the least con­ H. Marvin, who last fall was the Director troversial section of President Carter's industry. Thus the fact that most con­ of ERDA's Solar Energy Division. In the tractors who received grants were small energy plan. The President proposed not letter I outlined these complaints. A copy only tax credits to make the purchase of businesses is understandable. It should of his response is attached as well. As I be noted that the top five producers from solar equipment cheaper but a commit­ will show, the Director's response has ment to use solar energy where possible whom contractors purchased solar equip­ proved to be less than satisfactory. ment with Federal grants in the first two in Federal buildings. The only complaint Reliance on expensive equipment is HUD rounds were all major corpora­ about the solar proposals is that they documented in a special study report re­ tions: General Electric, PPG, Lenox­ do not go far enough. Some solar sup­ leased on February 18, 1977, by the Sheet Honeywell, Northrup, and Revere. This porters advocate loans and grants in Metal and Air Conditioning Contractors' is not because these corporations produce addition to credits. Nevertheless. adop­ National Association. In the first round the cheapest solar equipment; quite the tion of the President's solar program will of HUD residential grants, solar col­ contrary, the HUD/ERDA grant system be a big step .toward putting solar equip­ lectors were purchased at prices ranging encourages the purchase of their high­ ment in millions of homes. Solar energy, from $19 per square foot up to the priced systems. like good weather, is something almost astounding price of $255 per square foot. A more realistic view of ERDA priori­ no one is against. In the ERDA commercial program, col­ ties is afforded by the fact that, in the The President's progressive program lector prices in the first round varied research and development section of the presents a marked contrast to HUD and from $39 to $210 per square foot. Most program, 10 percent of fiscal year 1976 ERDA administration of Public Law 93- solar collectors on the market today sell funds went to small businesses. The solar 409, the Solar Heating and Cooling Dem­ for less than $25 per square foot. HUD energy industry has the potential to be onstration Act of 1974. The act set favored the more expensive, less efficient a source of growth for small businesses, up a program to bridge the gap between liquid systems in 85 percent of its grants. but HUD and ERDA policy continues to development of individual solar heating ERDA used the liquid systems in 97 per­ feed funds to the existing giants. and cooling systems and their widespread cent of their demonstrations. According In selecting participants for the resi­ sale and use. Public interest in solar to Dr. George Lof, a noted expert in the dential demonstration program, HUD energy was to be aroused by demonstra­ field: limited its choice to contractors who tion of solar equipment at sites around ... air systems have overwhelming advan­ would put solar systems into homes the Nation, and commercialization of tages over the liquid type ... (including) which they planned to build but which solar equipment would rapidly follow. lower capital cost, higher efficiency, greater they had not yet sold. Thus, even though Unfortunately, the national program for reliability and durability, superior compati­ a homeowner wants to put a solar sys­ solar heating and cooling has been a bility with conventional warm air heating tem in his home and is willing to par­ source of disappointment for many rea­ systems, and freedom from the liquid haz­ ticipate in the demonstration program, ards of freezing, corrosion, boiling, and leak sons, especially for those of us with damage. he will not even be considered for a. strong, longstanding interests in solar demonstration grant. Once again, this energy. If the goal is to encourage consumer policv was not set up in the original leg­ Public Law 93-409 had several objec­ purchases, it seems logical that the lower islation but was adopted by HUD· Of tives. First, it set up a research program cost air systems should be demonstrated. course, only a portion of the homeown­ to work on the problems which keot the Otherwise, data generated at the demon­ ers who might apply for grants if they cost of solar systems high-problems stration sites will indicate that solar were allowed to could actually receivu such as heat storage over long cloudy power is not economical, when, in fact, one. But one puroose of this program periods. Second, the demonstration pro­ it is. HUD and ERDA have not yet ar­ was to provide information on possible gram was to provide maximum oppor­ rived at this logical conclusion. incentive systems. In fact. both agencies tunities for small business particioation. I sent copies of mv letter and Dr. opposed immediate enactment of incen­ The intent here was to prevent the new Marvin's reply to several solar manufac­ tives during 1976 becauc:;e such incen­ solar industry from being taken over turers. Their replies highlight the prob- tives were still being studied in the dem- June 1, 1977 EXTENSIONS OF REMARKS 17215 onstration program. What better way to (2) Section 15(a), which expresses a sim- (1) demonstrations (residential and com­ study the effect of loans and grants on 11ar desire for a good geographical distribu­ mercial), (2) research and development (3) the total cost of a solar system than to tion of demonstration sites; development in support of demonstrations, (3) Section 15(b), which implies that ad­ and (4) agriculture and process heat. In 1975, experiment with ditferent approaches ministrators should purchase the least ex­ the Energy Research and Development through the program by allowing indi­ pensive components and systems which per­ Administration (ERDA) issued a Program vidual homeowners to participate? form at a given level; and Opportunity Notice (PON) inviting proposals Finally, ERDA has overemphasized (4) Sections 5(c), 5(d), 6(d), and 6(e), for solar heating and cooling demonstration solar electric at the expense of solar which give the Secretary of HUD broad dis­ projects. Thirty-four projects were selected heating and cooling, which is far more cretion in choosing the homes and home­ for awards. The total a.mount for these advanced. Over 70 percent of ERDA's owners to participate in the program and to awards was about $7.5 million. receive the benefit of low-interest finance of In twenty-eight of the thirty-four awards, proposed 1978 solar budget is for solar expensive solar equipment granted under electricity. Dr. Lof comments: the system contractor ~·as a small business Section 13. company (82% participation). Of the re­ Research in this area is certainly needed, I realize that this fourth area of interest maining six awards, five went to large cor­ but the hundred-million-dollar pilot plants involves HUD rather than ERDA adminis­ porations and one went to a state agency. and demonstrations now planned represent trative policies. However, I am writing to yvu Among the major subcontractors to the a great misuse of public funds. because funds for the HUD section of the solar system contractor, we find 63 small program are funnelled through ERDA. business concerns and 11 large corporations As an additional personal note, in re­ According to a report of the Senate Select sponse to Dr. Marvin's contention that (85 % small business participation). Our orig­ Committee on Small Business entitled "En­ inal objective was to obtain a 50% small Montana has received so few solar ergy Research and Development and Small business participation. The results are grati­ grants because only two groups have Business," small businesses, as defined by fying to us since they show that small busi­ applied, I agree that this may indicate SBA, received only 5.9 % of the dollar amount ness can compete effectively in solar heating a lack of interest in solar energy in of contracts awarded in connection with P.L. and cooling. Montana. My experience, however, 93-409 over the past two fiscal years. Is this Demonstration grants awarded by the De­ consistent with the congressional intent teaches me that it more likely indicates cited above? partment of Housing and Urban Develop­ that applications are deterred by Montana, which houses eight NOAA Prin­ ment (HUD) for residential projects were lengthy and complicated application cipal Climatological Stations and is divided made to builder-developers, to universities, procedures. Such a phenomenon has by two major climate systams, has not yet to Indian tribes. to cities, and to public doubtless been noted by many of my received a P.L. 93-409 demonstration project. housing authorities. All of the 55 awards HUD and ERDA officials informed me that were either small business or public bodies. colleagu~s from various parts of the The total amount of these grants was about country. However, I understand thr..t Montanans have shown a lack of interest in the program, yet my personal conversations $1.1 million. HUD and ERDA are revising and siin­ with my constituents do not confirm this. In the research and development pro­ plifying their application procedures. I Over sixty individuals and groups applied for gram for FY 1976, small business received welcome this development. Montana. state coal tax funds to conduct 12 awards for 10% of the R&D funds, whereas Clearly, the solar heating and cool­ solar R & D. How is it that a state with such large business received 15 awards for 28% ing demonstration program could stand expressed interest and climatological diver­ of the R&D funds. The remaining awards substantial improvements. I regret that sity has been left out of the P.L. 93-409 pro­ and funding went to universities and govern­ the program is already half way to com­ gram? ment laboratories. pletion, but perhaps revisions will help . According to my written correspondence In the program for development in support and personal conversations with solar inven­ of the demonstration program being admin­ put it back on track for its last 30 tors, developers, and ml.nufact urers, HUD istered for ERDA by the National Aeronautics months. I intend to communicate my and ERDA have tended to rely on more ex­ and Space Administration (NASA), Marshall views to Dr. James Schlesinger with the pensive components and i::ystems for the pro­ Space Flight Center (MSFC), five RFP's were hope that the new Department of En­ gram than are needed to meet certain per·· issued in FY 1976. Small business received ergy will upgrade the administration of formance levels. What eviden~e can ERDA 25 % of the funds and 75 % of the awards this program. give to demonstrate compliance with Section resulting from these RFP's. 15(b) of P.L. 93-409? In the agriculture and process heat pro­ If changes are not made, and if solar Finally, in selecting participant;; for the gram, most of the funds and awards have equipment is to be used in millions of demonstration section of the program, is it gone to universities and the U.S. Department homes, I am afraid it will have to occur true that only contractors who have not pre­ of Agriculture, but 4 awards were made to in spite rather than because of Public sold the units to be used for demonstration small business for 17 % of the funds. Law 93-409. The equipment being dem­ and testing are chosen? Is it possible for an In answer to your question about the onstrated is too costly, and because of individual homeowner, or a contractor with participation of Montana in the solar heating this, there are not enough demonstra­ presold units, to apply for and be included and cooling program, both ERDA and the in participation in the residential demon­ Department of Housing and Urban Develop­ tion sites. Hopefully, when incentives stration program? And if not, why is such a ment (HUD) are primarily using open com­ are available and market forces operate, policy necessary in carrying out the pro­ petitive solicitations to invite participation people will purchase solar equipment visions of P.L. 93-409? in the solar program and to identify poten­ from the low cost small firms which I realize that answering these questions tial solar heating and cooling demonstration have led the development of the solar in­ may require detatled and time-consuming projects. In t he first HUD solicitation invit­ dustry. The potential of solar power will work. However, as a member of the House ing proposals about 250 applications were be realized in this low cost high effi­ Committee on Appropriations, I feel that received, but only one was submitted from ciency world, not in the opposite world these questions must be ~ettled in my own Montana. That proposal was from the Black­ of HUD and ERDA. mind before any further consideration of feet Tribe Housing Authority and they were ERDA appropriations. awarded a grant for five single family dwell­ The letters follow: If you need any clarification of my ques­ ings. In the second HUD solicitation for resi­ HOUSE OF REPRESENTATIVES, tions, please contact either Jerry Tinianow dential demonstration projects, over 300 Washington, D.C., September 21, 1976. or Steve Browning of my office. I appreciate applications were received and again only Dr. HENRY H. MARVIN, your cooperation in replying to my questions, cne was received from :Montana. Awards on Director, Division of Solar Energy, Energy and I hope to learn from you in the near this solicitation were recently announced by Research and Development Administra­ future. Secretary Carla A. Hills and the Montana tion, Washington, D .C. Sincerely, application did receive a grant award. En­ DEAR DR. MARVIN: I am writing to you to MAX BAUCUS. closed for your information is a copy of the get your reaction to certain observations I HUD press release listing all grantees. have made concerning the administration of U.S. ENERGY RESEARCH AND In ERDA first solicitation for commercial P.L. 93-409, the "Solar Heating and Cooling DEVELOPMENT ADMINISTRATION, demonstration projects, 308 proposals were Demonstration Act of 1974." My observations Washington, D .C., October 29, 1976. received, but none were received from are based on my research of ERDA and HUD Hon. MAX BAUCUS, Montana. administrative actions in connection with House of Representatives, Washington, D.C. In summary, we have received over 750 PL. 93-409, my personal discussions with DEAR MR. BA ucus: Thank you for your expressions of interest in solar heating and interested constituents in Montana, and con­ letter of September 21, 1976, requesting in­ cooling demonstration projects and only two versations with my colleagues. formation on the administration of Public were from Montana. I am specifically interested in your imple­ Law 93-409, the Solar Heating and Cooling In May 1975, a National Solar Energy Work­ mentation of four part$ of the Act: Demonstration Act of 1974. shop was held in Huntsville, Alabama. The (1) Section 14, which indicates a congres­ In answer to your question about small purpose of this work.shop was to discuss the sional desire for maximum participation op­ business participation, I will discuss small solar heating and cooling program with the portunities for small businesses; business participation in each of four areas: states and identify how the states could be- 17216 EXTENSIONS OF REMARKS June 1, 1977 come more involved in the program. All clarification on the above, please let me likely to press expensive legislation not sup­ fifty states were invited and 30 states were know. ported by the White House and the Pentagon. represented, but no one attended from Mon­ Sincerely, In another sense, however, the time seems tana. A copy of the proceedings was sent to H. H. MARVIN, ripe for one more try at recomp. Another the Montana State Energy Office. Directo.r, Division of Solar Energy. major pay study is underway and the Penta­ In answer to your question about ERDA gon's retiree pay modernization plan is and HUD relying on more expensive solar pending. While future pay and retirement systems in demonstrations, two methods are benefits are being considered, it would seem used in the residential and commercial dem­ RECOMP only logical to find some remedy for past onstrations to select solar systems for dem­ omissions. onstration. One method involved the selec­ Those who support recomp suggest that if tion of acceptable solar systems and the HON. BOB WILSON the government does not play fair with past retirees, it wm have trouble getting future integration of these systems into selected OF CALIFORNIA sites. Through a joint solicitation last year, members. In the past, that argument did not ERDA and HUD selected a number of solar IN THE HOUSE OF REPRESENTATIVES impress us much. We doubted that new systems for use in selected residential dem­ Wednesday, June 1, 1977 potential recruits would be much concerned onstration projects. In selecting these sys­ about the problems of people who retired tems, consideration was given to techhnical Mr. BOB WILSON, Mr. Speaker, the while the present generation still was in performance and potential reliability, and editorial in last weeks' Air Force Times grade school. not primarily to cost; we believe that current was directly on target with respect to Recently, we have seen more merit in the system costs are still uncertain and that the long smoldering recomputation is­ argument. The question of the goevrnment's significant price changes will occur as manu­ sue. Opponents seem to feel that recom­ living up to its written and implied promises facturing capabilities, mass production, sys­ has become a major one in the discussion of tem performance, and competition are better putation, like old soldiers, will simply erosion of benefits and possible unionization. understood. fade away. Believe me, they are wrong. Those fighting for recomp can point to their The other method of selecting solar sys­ .With each passing year of congressional experience as a case in point. tems was where the solar system was selected inaction, the inequity against the older We don't know whether there is any chance by the applicant and submitted as part of retirees is only magnified. I commend to for recomputation in the near future. We an integrated project proposal. This is the my colleagues' careful attention this do think it deserves more serious attention way the construction industry works, and we Times commentary: than it has received recently and that the believe it is essential to the rapid acceptance time is ripe for consideration of at least a of solar energy by the industry and Its cus­ RECOMP one-time readjustment. tomers for the normal supplier-developer re­ For some years, a determined body of re­ The alternatives are some other kind of lationships to be established as quickly as tirees has argued unsuccessfully for "re­ support for many of the aging retirees. It possible. In evaluation of project applica­ computation" of retired pay. would be better to provide their earned en­ tions, both ERDA and HUD look primarily at Recomp died so long ago that the term titlements than to subject them to the the technical capability but also consider probably is meaningless to much of today's humiliation of some other form of govern­ costs of the systems in the proposed applica­ generation of. service people. ment subsistence. tion, and we have required cost-sharing by Here, roughly, is the idea: Years ago, the private commercial users. law required that whenever active duty pay In the second cycle of residential demon­ was raised, a similar adjustment would be DR. LYMAN SPALDING, FOUNDER OF strations, HUD has declined to acceP.t sev­ made in retired pay. Then-almost 20 years eral projects where system costs are far too ago--recomputation was terminated. There ''PHARMACOPOEIA'' high for the market, and has accepted several was a modest percentage raise in retired pay where low cost systems that have been pro­ in 1963 but since then, retired raises have posed, even though technical consultants been based on changes in cost of living. HON. CLARENCE J. BROWN have indicated that maintenance and serv­ Since recomp ended in 1958, there has OF OHIO iceability problems may result in higher been an increase of more than 100 percent IN THE HOUSE OF REPRESENTATIVES operating costs. Low initial first cost does in retired pay under the cost-of-lfving for­ not necessarily mean low life-time costs, and mula. The problem fs that the increase In Wednesday, June 1, 1977 Section 15 (b) calls for consideration of both active duty pay has been more than 150 Mr. BROWN of Ohio. Mr. Speaker, I production and maintenance costs. percent during the same period. wish to share with my colleagues the Primarily, though, we believe that in this The result is that thousands of service people who retired when active duty pay following statement submitted to me by early stage of the demonstration program we a constituent, Rylance Allen Lord, M.Sc., must establish acceptable levels of technical was low have not felt the benefit of the performance and maintenance capability, and substantial raises given the active force. They R.Ph., of Springfield, Ohio, who has that all systems which appear to hold prom­ have received increases in pay with the rise spent much time and etfort in an attempt ise of being economical in given applications in the Consumer Price Index. to gain approval for the issuance of a should be demonstrated and tested. As we These percentage increases serve to widen commemorative stamp to honor Dr. build a basis of experience in performance the gap between the pay of the early re­ Lyman Spalding, the founder of this and actual costs, we will be concentrating tirees and that of people retired more re­ cently. country's official drug standard, the on the proven economical systems. "United States Pharmacopoeia": In answer to your question about the use Surcessive administrations have explored the question of recomp. Congress has con­ Fellow Americans: We are attempting to of pre-sold residential units in the demon­ secure interest in obtaining what we feel stration program, at this time HUD is not sidered reviving it at least on a one-time basis to bring the pay of early retirees more is long overdue formal recognition for the awarding project grants to individuals for founder of the United States Pharmaco­ their private homes or to builders who have in line with that of recent retirees. To date, however, there has been no action to remedy poeia-this country's official drug standard. pre-sold the units to individuals. There are the situation. For 157 years, all Americans have been the two reasons for this decision. First, one of beneficiaries of the keen foresight of Doctor the primary objectives of the demonstration As ls often the case in legislation affecting the military, critics of recomp focus on the Lyman Spalding when he encouraged the program is the development of a residential extreme cases. Retired general officers already adoption of an official drug compendium of market, and the determination of the po­ receive substantial retired pay checks. P..e­ medicines and preparations as early as 1798 tential barriers to the development of such comp would increase the take for some of while he was assisting in the founding of a market. By requiring the grantees to mar­ these people when they aren't really hurting, Dartmouth Medical School in Hanover, New ket the demonstration units after construc­ the argument goes. Hampshire. tion, we can obtain data on market accept­ We are not greatly concerned about the During his short life (1775-1821), Doctor ance and builder willingness to use solar as benefits for generals. What does concern us Spalding contributed much to the health a marketing device which could not come is the plight of lower ranking retired officers and welfare of his fellow citizens which di­ from proiects for private owners. Second, and enlisted members. rectly benefit us all today. HU~ .has received over 10,000 inquiries from When recomp died, many of these were History cannot succeed in recording, for ind1v1duals about obtaining Federal assist­ drawing only modest retirement benefits. posterity, each and every American who has ance in installing a solar system to reduce Under the present system, they never can a part in each and. every significant event. heating costs. It would be most difficult to catch up. In fact, they will continue to lose Soalding and the founding of the United select on an eauitable basis a few hundred ground to inflation. States Pharmacopoeia ( 1817-1820), it is felt, "lucky" individuals to receive such grants. Realistically, we do not see much chance just got "lost in the shuffle" of events which A lottery system has been considered but a for early passage of recomp legislation. The surrounded a very young nation grasping for number of problems exist with the lottery present administration is trying to reduce its very survival after two wars within 30 aporoach. defense costs and retired pay in general is years to achieve and maintain its freedom If you need additional information or being looked at critically. Nor is Congress and independence. June 1, 1977 EXTENSIONS OF REMARKS 17217 However, we feel that appropriate and Frazier said that 'in order to report then resumed his private business pur­ timely commemoration of the work of Doctor only 1,000 summarized data items to the suits. Lyman Spalding is at hand and should be Federal Government, several million in­ made via the vehicle of a United States post­ He continued his active interest in age stamp, and we urge the members of both dividual student data items had to be col­ politics and in a special election in 1951, branches of the Congress to exhibit a favor­ lected by Colorado's vocational educa­ Osmers returned to the Congress filling able opinion in this regard to the officials tion system. a vacancy as the Representative from of the United States Postal Service. The A data item is a single response to a his Bergen County district in New subject has been before them since the question such as: "How many students Jersey. This fine man was reelected to Fall of 1975. do you have in the sixth grade?" Re­ the six succeeding Congresses, serving porting costs vary widely, from 30 cents until January 3, 1965. His exemplary per item to as much as $20 per item. The service in Congress will be remembered average cost to report a data item is with honor by those who knew him. FEDERAL PAPERWORK COSTS $1.31. • . Even after his retirement from public SCHOOLS BILLIONS Dr. Frazier proposed a number of re­ life, Frank Osmers displayed continued forms to ease the paperwork burden im­ interest in politics and public affairs at HON. WILLIAM L. ARMSTRONG posed on State and local school officials: the local, State, and Federal levels. I OF COLORADO 1. Centralize the review of data collection speak for his colleagues in many places forms and procedures in one agency. and at many different levels in express­ IN THE HOUSE OF REPRESENTATIVES 2. Expand the scope and responsibility for ing my deep sense of sadness at his Wednesday, June 1, 1977 preliminary review of forms to weed out those death. My heartfelt sympathy goes out to Mr. ARMSTRONG. Mr. Speaker, Dr. which are duplicative or unnece=:sary. his wife, Marguerite, and their two chil­ 3. Coordinate federal data collection ac­ dren, Frank C., III, and Nancy Wysocki. Calvin Frazier, Colorado's Commissioner tivities that impact on local school districts of Education, came to Washington last through the state education agency. He will be greatly missed by all. week to express his concern about a large 4. Establish a data item directory as a and g1·owing problem that threatens to means for identifying duplication of effort. overwhelm the financial structure of 5. Require all new requests for data and school systems throughout the United changes to existing surveys to be defined and WEATHER OR WASHINGTON States. approved for collection by the December prior to the school year in which it is to be col­ The problem is the excessively high lected, to permit more orderly planning by HON. JOHN H. ROUSSELOT cost, in time and money, of doing all the local school districts. OF CALIFORNIA paperwork required by the Federal Gov­ 6. To reimburse the suppliers of data for IN THE HOUSE OF REPRESENTATIVES ernment. the costs they incur in complying with fed­ In his testimony before the House eral requests for information. Wednesday, June 1, 1Y7'i Subcommittee on Elementary, Secondary Dr. Frazier's proposals are sound and Mr. ROUSSELOT. Mr. Speaker, as and Vocational Education, Dr. Frazier Congress considers tomorrow H.R. 6804, estimated that school districts in Colo­ necessary reforms. and I will do what I can to see that they are enacted. Our to create a Department of Energy, I rado spent approximately $3 million in would urge that serious consideration be 1975-76 to collect the more than 2 mil­ children deserve the best education our money can buy, but the money we spend given to the complete decontrol of the lion items of educational information price of these commodities and letting demanded by various Federal agenices. on education should go toward educat­ ing our children, not filling out forms. their value be determined by the free Dr. Frazier said : market. This, more than any other sin­ If our state is an indication, this would gle action, would contribute to an im­ mean 250 t-0 300 million dollars were spent proved energy outlook for our country. compiling K-12 educational data by all states It has been credibly established by the last year. REPRESENTATIVE FRANK C. OSMERS American Gas Association and the En­ The figure is staggering, and gets ergy Research and Development Agency worse beyond the elementary and sec­ that there are vast supplies of natural ondary school level. HON. EDWIN B. FORSYTHE gas deposits available to last between One college estimated recently the OF NEW JERSEY 1,000 and 2,500 years-but not at the costs of complying with Fedel"al regula­ IN THE HOUSE OF REPRESENTATIVES present Government-regulated price tions at between $4.6 million and $8.3 WedneJday, june 1, 1977 levels. Only if the price of natural gas million. The American Council on Educa­ is decontrolled and permitted to be set tion reported in 1975 that the overall im­ Mr. FORSYTHE. Mr. Speaker, I would by the market will there be sufficient pact of Federal regulations was an in­ like to express my regret regarding the growth and development capital to ac­ crease in the cost of running the Na­ recent death of Frank C. Osmers, Re­ cess these resources. tion's colleges by the equivalent of from publican, New Jersey. During his total In a recent Newsweek editorial, dated 5 to 18 percent of total tuition revenues. of 17 years in the U.S. Congress, span­ February 28, 1977, Nobel prize-winning And Change magazine estimates that ning four decades, Representative Os­ economist, Milton Friedman, makes a Federal regulations cost as much as the mers displayed an intense sense of re­ persuasive case for decontrol. Suggest­ total of all voluntary giving to the Na­ sponsibility and distinction. His career ing that the recent winter gas shortage tion's private schools-about $2 billion in public office involved all levels of gov­ was due more to Government regulation a year. ernment and politics. than bad weather, Friedman recom­ Since Federal aid to education ac­ First elected to Congress in 1938, Con­ mends that the best way to end the fuel counts for only about 7 percent of the gressman Osmers was reelected in 1940. shortage is to abolish the Federal Energy budgets for elementary and secondary He did not run for reelection in 1942, Administration and eliminate the power school systems-less than that in Colora­ however, as he enlisted in the Army as a of the Federal Power Commission to fix do-it is clear that local school officials private 2 days after the attack on Pearl the price of natural gas-or any other are spending a grossly disproportionate Harbor. Despite his isolationist views, he product. As Congress deliberates over amount of their time doing Federal pa­ had patriotically vowed to enlist if this different solutions to our country's en­ perwork, much of which is needless and country were attacked, and subsequently ergy problems, I would urge my col­ duplicative. voted in Congress for war immediately leagues to lend an ear to Dr. Friedman's Colorado currently is conducting a de­ after the Japanese strike. sage counsel: tailed study of the cost of providing re­ This courageous man rose to the rank GAS CRISIS: WEATHER OR WASHINGTON? quired data to the Federal Government. of major in an infantry division and (By Milton Friedman) The survey will not be concluded until served in the Philippine and Okinawa The statements and proposals about the August or September of 1978, but the pre­ invasions and the Korean occupation. gas crisis emanating from Washington these liminary findings give a clear indication After his discharge in 1946, he remained days remind me of the story of the young of the scope of the problem. an officer in the Army Reserves and man, convicted of murdering his mother and 17218 EXTENSIONS OF REMARKS June 1, 1977 father, who threw himself on the mercy of easy: simply abolish the Federal Energy Ad­ stays in one unit, and we have been able to the court as an orphan! ministration and eliminate the authority of reduce the period of training from 16 weeks True, the winter has been extremely severe the Federal Power Commission to fix the to 12 weeks. This is a money saver since we in large parts of the country. Under the best price of natural gas-or any other product. don't have to move the field artillery trainee of circumstances, the severe winter would That is the only effective way to assure that from his basic training post to Fort Sill for have imposed a hardship, raised costs, and the present output of fuel is used efficiently advanced individual training. We have found interfered with production. But there have and that future supplies are found and de­ no degradation in the quality of our product been hard winters before, and they have veloped. It would also be the most effective because we ca.n provide him an earlier ex­ never been accompanied by some of the prob­ blow that we could strike to speed the break­ posure to the field artillery while he is learn­ lems specific to this one: widespread short­ down of the OPEC cartel. ing the basics of being a soldier. By not up­ ages of natural gas, leading to compulsory The hard winter ·:vm have been a blessing rooting the individual in the midst of his rationing and the closing of schools, factories in disguise if it drives this lesson home. training, we have found that his morale and and other establishments. motivation is better than under the old split HOW TO PRODUCE A SHORTAGE system. The source of the difference should by now Although we don't have any female can­ be crystal clear: Federal control of the prices PEACE THROUGH READINESS noneers, women are playing an increasingly of natural gas and oil. For natural gas, price important role in today's Army. In the past control, which goes back to 1954, has pro­ five years, the number of women in the ac­ duced a crazy-quilt price structure that tive Army has quadrupled to about 47,000. encourages wasteful consumption and dis­ HON. TOM STEED The Army has come to realize that women courages production. Some natural gas (from OF OKLAHOMA make good soldiers in mo1·e areas than we had previously expected-officers as well as en­ so-called old wells) must be sold at 52 cents IN THE HOUSE OF REPRESENTATIVES per 1,000 cubic feet; some (from so-called listed. And at the present time, we're getting new wells) at $1.42; and some, which is used Wednesday, June 1, 1977 more high school graduates among women intrastate, is not subject to control by the Mr. STEED. Mr. Speaker, on Armed than men. Of a total of 406 enlisted job cate­ Federal Power Commission and sells at a free gories in the Army, 371 are now open to market price, currently around $2. In addi­ Forces Day, May 21, Maj. Gen. Donald women. Among officers, we now have women tion, utilities pressed to supplement do­ M. Keith, the commander of Fort Sill, assigned to all branches except the combat mestic supplies have been purchasing lique­ Okla., gave an incisive address on the arms. Here at Fort Sill, there were 518 women fied natural gas from abrDad at prices rang­ state of our defense system and the role military personnel in 1975; today there are ing up to $3.50 per 1,000 cubic feet. Make of Fort Sill in particular. 853. Last year, as all of you know, women sense of all that, if you can! His remarks, given at a luncheon at were enrolled as cadets in the United States This crn.zy-quilt structure has been erected the fort, provide a telling illustration of Military Academy for the first time and by in the name of protecting the consumer all accounts, they're doing quite well. Last from the greed of the producer. But the the Armed Forces Day theme, "Peace year, also, the first 150 women graduates predictable effect has been very different. Through Readiness," so essential to our were commissioned through the Reserve Of­ Economists may not know much; but one security. ficer Training Program, so we now have al­ thing we do know: how to produce a short­ The text follows: ternate sources for female officers other than age. Force the price of anything-from PEACE THROUGH READINESS Officer Candidate School. tomatoes to town houses-below the market I would be less than candid if I discussed price, and you can be sure eager buyers will Thank you, Colonel Moran. Ladies and only the good points of our personnel situa­ scramble for inadequate supplies. So it has Gentlemen: I am pleased to be with you­ tion. You've heard the volunteer Army con­ particularly on an occasion like today. Each been with gas. Co~1sumers lucky enough to cept questioned on more than one occasion get gas have benefited; those denied gas have year, Armed Forces Day offers every Amer~ recently. Last fall you may recall that I went been forced to use more expensive fuels. In­ ican the opportunity to t:ike a close-up look on record as favoring a standby draft. The dustrial users have been induced to move at the nation's military forces. This year, Selective Service System has been dismantled to states where they can buy gas free from the Armed Forces Day theme is "Peace to such an extent that it can no longer meet controls-the availability more than com­ Through Readiness." Therefore, the thrust our manpower needs in the early months of a pensating for the higher market price. Those of our activities nationwide is to demon­ future war. While I believe that the all-vol­ remaining dependent on interstate gas have strate how we are helping prevent the next unteer Army has worked for us up to this experienced expensive interruptions. war by being ready to win it. My remarks point, there is no doubt that the recent state My own senator, Adlai Stevenson of Illi­ will focus on what the Army is doing, and of the economy helped us. But the fact is nois, illustrates dramatically the perversity more specifically, what Fort Sill is doing to that now we a.re beginning to experience of the political process. He has consistently exemplify and support "Peace Through some real problems in getting both the quan­ supported low price ceilings on natural gas, Readiness." tity and quality of soldiers that we need, which inevitably means a shortage of gas There are a great many things that make particularly for the Reserve components. and, hence, gas rationing. Politics assures up this condition we call readiness. It has When the draft was terminated, greater em­ that residential users will get first priority. to do with equipment, organization, train­ phasis was placed on keeping the active Army As a result, the bills that Senator Stevenson ing ... really with just about everything up to strength-there simply wasn't enough the Army does. But the key to readiness is money available to effectively promote the has sponsored could accurately be described National Guard and Reserve at the same time as bills to drive industry out of Illinois. Has people. The primary consideration in achiev­ ing combat readinei:s is having quality peo­ as the active force. Moreover, Reserve com­ he truly been serving the interests of his ponent shortage3 were not an immediate constituents by making gas cheap and si­ ple. To this end, the Army has placed a heavy emphasis on recruiting high school problem: The six-year obligation of draft­ multaneously depriving them of jobs? By induced Guard and Reserve enlistees from making gas cheap to some, and forcing graduates who score well on military exami­ nations. Young men and women who have the Vietnam era had not expired yet. How­ others to rely on more expensive fuels? By ever, in the past few years, those obligations assuring interruptions of schools and other graduated from high school have demon­ strated that they perform more effectively, have been ending, and new recruitment has governmental services? not made up the difference The incentives But, you may say, why blame Senator are twice as likely to complete their enlist­ ments, and cause fewer disciplinary prob­ just aren't there. I am encouraged, though, Stevenson and his colleagues? Are not the by public pronouncements by some con­ real culprits the greedy gas producers who lems than non-graduates. Today, over 80 <;-C· cerned members of Congress that suggests we prefer to sell gas intrastate for $2 per 1,000 of our soldiers have high school or equivalent should institute some form of broad-based cubic feet, instead of shipping it interstate diplomas. universal service. one part of which would at 52 cents or $1.42? Before answering a Although we consider recruiting to be the be a military option. resounding "yes" to that question, let me foundation of our quality program, it's not Frankly, we don't talk as much as we suggest that each of my gentle readers ask enough by itself. Equally important is "skill should about our Reserve components. Most himself whether he would voluntarily take match," a program with the objective of of the emphasis seems to be on the active a large salary cut in the name of protecting putting the right soldier in the right job force. But our total Army is made up of the consumers of the product that he helps at the right time. Success in this area re­ the active element, plus the National Guard, to produce. If not, why do you expect the sults in job satisfaction, and contributes to the selected Reserves. the individual i·eady workers and stockholders of the corporations unit mcrale and that all-important comb::i.t Reserves, and the standby Reserves. To­ producing gas to do so? Do you really prefer readiness. gether, the Reserve components make up government allocation of jobs and of output, Both morale an·d efficie:1cy were enh1nced over half of the total Army, and serve to to voluntary cooperation in a free market? at Fort Sill during the past year when we in­ round out the units on the line. Selected stituted our one station training and one Guard and Reserve units have even become HOW TO END A SHORTAGE station unit training programs. In both pro­ integral parts of the actual structure of four Nothing Washington can do will change grams, a soldier receives his basic and his active divisions. These "roundout" units, as the weather. But assuring an end to the fuel advanced training right here. In OSUT, where we call them, are vital to the Army total shortage and the misallocation of fuel is the basic cannoneer is trained, the soJ.dier force structure. June 1, 1977 EXTENSIONS OF REMARKS 17219 I would be remiss if I didn't note at this improved materiel; and molding the active Frankly, I am not satisfied with the point the large number of people at Fort Sill and Reserve components into a fully-manned, response of the Federal Reserve Board and our sub-installation, Fort Chaffee, de­ fully-equipped, and fully-trained total Army. Chairman and officers, nor should the serving credit for supporting the Guard George Washington, the Army's first Com­ and Reserves. You don't hear much about it, mander-in-Chief and the nation's first Pres­ committee or Congress be satisfied. As a but Chaffee alone trains over 20,000 Guards­ ident, said: "To be prepared for war ls the member of the committee, I view our men and Reservists each year. With the most effectual means of preserving the peace." role seriously and responsibly. The over­ Selective Service machinery in a "deep That axiom is as true today as it was in the sight review of various programs and standby" status, effective training of our eighteenth century. But readiness has never agencies and boards is a major endeavor, Reserve component assumes greater signifi­ been cheap--or easy. Modern wee.pons sys­ and Congress has equipped itself with cance. In the event of a national emergency, tems are costly--costly to develop, and costly competent staff and important support the Guard and Reserve will be called upon to maintain-and the cost of manpower has from agencies such as the General Ac­ to fill the gap between our peacetime capa­ increased even more dramatically. People bility and our wartime requirement. costs in the volunteer Army now account for counting Office to help achieve those The manpower situation, then, is of con­ over half of our annual budget. Even so, and goals. cern throughout the Army. I should empha­ contrary to the belief of many Americans, The overwhelming conclusion that is size that right now we are not in any sort the Department of Defense is not the top gleaned from this recent evaluation is of a weakened state. We have met the chal­ spending agency in the Federal Government. that the Federal Reserve System has not lenge of a voluntary service to date. But Defense expenditures for fiscal 1978, for ex­ been sufficiently protective of the public being ready means looking ahead to future ample, will be about half of what will be trust, that flagrant conflicts of interest needs, too. That's why some of us are spent for social and economic programs. sounding the alarm-we can look ahead and Viewed over a 1011ger period, defense spending are tolerated and that the covert con­ see where we might have a real problem in has increased about 112 percent since fiscal duct of the 12 Board of Directors is the not-too-distant future, if we don't act 1964; social programs have jumped some 517 deemed to be above review by this or any now. percent during the same period. other Congress. At the beginning of my remarks, I noted The defense load ls indeed heavy, but his­ For my part, I most emphatically re­ that one aspect of readiness is equipment. tory has taught us the price of unprepared­ ject this attitude and fully support Chair­ It's the old situation of having the right tool ness: a high cost in lives, resources, and man REUSS in his efforts to review the for the job. The Army has a vital research equipment-and that is unacceptable. we minutes of these Federal Reserve Bank and development program to keep our must, in Washington's words, be prepared to "tools" current. For example, full-scale de­ main ta.in the peace. Boards. I call upon the Chairman of the velopment of the Army's new tank, the XM- That spirit of "Peace Through Readiness" Federal Reserve Board of Governors to 1, began in November of last year. It is must remain as important to the volunteer provide an immediate and full explana­ scheduled to be part of the active Army in­ men and women of today·s total Army-who tion of the conduct of these boards and ventory by 1980. Also on the horizon are the serve the needs of our country and protect the complete sets of minutes. all-weather advanced atttack hellcoper, the the American way of life--as it was to Gen­ It is obvious that the Federal Reserve mechanized infantry combat vehicle, the eral Washington and the Continental Army, Board of Governors and the 12 Federal patriot surface-to-air missile system, and and as it is to all of you here today. Reserve Banks have a legal and moral a new utility helicopter which is entering Thank you for your continuing interest in production. and support of the U.S. Army-both world­ responsibility to remedy the conduct of Within the field artillery, we have a num­ wide and here at Fort Sill. It has been my their members. The improper covert uti­ ber of exciting modernization items. The pleasure to have this opportunity to report lization of the district Federal Reserve cannon-launched guided projectile (now to you today. Bank meetings to engineer lobbying ef­ ·named Copperhead) is in the final phase of forts at this very Congress, at various development. During tests la.st year, these State legislatures; the attempts to en­ projectiles fired from 155mm howitzers at THE FEDERAL RESERVE ranges of about 13 miles scored direct hits courage member banks to lend funds to on moving tanks that were being illumi­ real estate trusts and utilities; the in­ nated by an observer with a low power laser HON. BRUCE F. VENTO di$criminate distribution of special gifts, device. OF MINNESOTA favors, and the self-serving loan demon­ Also, rocket-assisted projectiles are being IN THE HOUSE OF REPRESENTATIVES strate a contempt for ethics which chal­ developed for our existing howitzers. The lenges the American people's sense of rocket motors in the base of these projec­ Wednesday, June 1, 1977 tiles burn for just a few seconds, but in­ fairness. crease considerably the range of the shell. Mr. VENTO. Mr. Speaker, the series Certainly, I do not question the rights There are many other a.rtlllery or artillery­ of letters between Chairman HENRY of fiduciary institutions to form trade related developments that I don't have time REuss and the Chairman of the Federal associations and the attempt to provide to cover in any detail today. But they in­ Reserve Board of Governors poin ts up inpu~ on legislation or regulations. Nor clude new radars and other target acquisi­ the need for considerable concern by do I question the necessary capital needs tion devices, a new multiple rocket system of utilities or an employer's small me­ to attack the enemy's artillery and a.tr de­ Members of Congress. fenses, and a new automated command and The reasonable and timely requests of mentoes to employees or loan programs. control system which will greatly improve Mr. REuss have been treated with dis­ However, the Federal Reserve System our ability and responsiveness to do the dain by the Federal Reserve Board. The i~ not a private business entity, but artillery job. We simply must harness the begrudging submission of abbreviated rather one of the primary mechanisms best that technology has to offer 1f we a.re minutes of the 12 Federal Reserve Dis .. in our na t1onal monetary system charged to fight outnumbered and win. tricts with some 900-plus deletions serves with tremendous responsibilities and The Army's combat oapab1lity ls its 24 com­ public trust bat divlslons-16 active and eight National notice on Congress of a serious problem. Guard. They, of course, are augmented by The Federal Reserve System has a uni­ I am alarmed that the various Federal the necessary combat support and service que regulatory responsibility in our Reserve Bank Boards, charged with these type units to balance the force. What you economy, certainly one that requires very sigmficant responsibilities, should see locally are the 15 battalions and three public trust and avoidance of potential exercise such poor judgment, that some battery-size units of III Corps Artillery con­ conflicts of interest. individuals with the ability and exper­ stantly maintaining a high degree of readi­ The fragmented minutes that have ience to serve objectively have sought to ness. All of our military units are structured been submitted and analyzed by the staff for a variety of missions in different world abuse the public trust and have covertly environments. But the goal ls to maintain of the House Committee on Banking, engaged in improper selfserving activi­ a tot"al Army force available for a commit­ Finance and Urban Affairs indicate that ties. ment anywhere U.S. interests require--peace there are indeed conflicts of interest It is, indeed, unfortunate that the Fed­ through readiness. which are permitted to thrive within the eral Reserve System as a regulator is Efforts during the past year-including 26 Federal Reserve. losing sight of its unique role and status. major training exercises-have resulted in That conclusion is arrived at from the The answer clearly focuses upon the need improved combat readiness. Looking to the information made available to the com­ for congressional action. It is ironic that future, Army goals are designed to sustain a. highly professional, combat-ready force by: mittee. There has been, apparently, no the Federal Reserve Bank Board direc­ recruiting and retaining high quality soldiers; acceptance of an invitation to the Fed­ tors' actions to defeat legislative pro­ improving the career management and pro­ eral Reserve Board Chairman to appear posals which would mandate a GAO fessional development of both officer and en­ before the full committee and address audit. reinforce the need for it. listed personnel; developing and procuring these concerns. In the struggle to retain their auton- 17220 EXTENSIONS OF REMARKS June 1, 1977 omy and special treatment, they amplify they were abruptly disbanded after the The WASPs feel that their case is unique, the importance of more consistent treat­ war so that "they would not take jobs and this year, better prepared than ever, As they feel optimistic about their ability to ment and compliance with codes of con­ away from men." one of my constitu­ convince Congress. duct in effect for almost all branches of ents, Mrs. Lila Moore Mann-a former In an office on I Street NW not far from Government. WASP-recently wrote: the White House, WASPs, aided informally What will prevent future problems of I enllsted in the w ASP program in 1944 by the son of a general who organized them this nature when the current turmoil with- the understanding that I was serving in 1942, are collecting paper ammunition for subsides? More congressional oversight? my country in a mmtary capacity, the same their mission. This includes documentation Improved legislation? New board mem­ as my brother who was ~hen in the naval for their claims that they operated under bers? The eventual answer must include training program at Pensacola, Fla. I was military discipline, rules and regulations, public exposure. The actions, minutes, released from a teaching con tract in order to lived in military barracks and ate Army food, enable me to "serve in the military," since went through officers training, got low mili­ and meetings must be public insofar as it was the intention of the Army Air Force tary-type pay and no insurance, and earned possible. The assumption that fair policy to mllitarize the WASP's. military decorations-all with the under­ is made only by experts from the finan­ stand.lng that they would be mmtarized and cial community has been dealt a serious Mr. Speaker, I am cosponsoring a commissioned as second lieutenants. blow. We must seek involvement by the similar bill to provide these women with During the WASP's brief existence, between nonexpert consumer, the nonpolitical veterans' benefits, and I urge my col­ September, 1942, and December, 1944, some citizen, and public membership from out­ leagues in the House Veterans' Affairs 25,000 women applied for fewer than 2,000 side the financial community. Committee to hold hearings on this mat­ slots as WASP trainees. Those who were ac­ The general policy represented in Fed­ ter as soon as possible. cepted earned $150 a month during training, eral law and regulations that has evolved It is a very sad commentary on our and the 1,074 who graduated earned $250 a attitude toward those who honorably month thereafter. Out of this they paid for, in most instances to delineate the proper among other things, their room and board. conduct of individuals, either as em­ serve this country, that we would on one Wearing baggy men's GI uniforms, which ployees or appointed indi'7iduals in public hand provide veterans' benefits to those they called ·~oot suits," they ferried fighters policy roles, should be applied to the who deserted during the Vietnam conflict to points of embarkation in the U.S. and Federal Reserve System. These criteria and have subsequently had their dis­ Cana:la and flight-tested aircraft and per­ must provide a basic assurance to the charges upgraded, while on the other formed other duties in order to free male public that regulated industries' deci­ hand, we refuse to give the same benefits pilots for combat. sions will be objective, that the public to those 800 remaining members of the They plan to show Congress that when a policy will reflect the public interest, and Women's Air Forces Service Pilots, who male and female pilot were killed in the same assisted their country during World War air crash, the male received full military that it will be decided in an open manner honors and benefits, while the female copilot with the rights of the public to represen­ II. We must correct this inequitly. and her family received nothing. tation and voice in decisions fully Article follows: Penny Houghton, a former WASP, now the protected. WORLD WAR II WOMEN FLIERS SEEK mother of three and a court reporter in the Finally, I would like to give credit to EQUALITY District Superior Court, recalls that once our distinguished chairman, the es­ (By Kathy Sawyer) after a classmate was kllled in a crash dur­ teemed gentleman from Wisconsin, for During World War II more than 1,000 of ing training, "the other girls had to pass his leadership in this instance has initi­ them flew m111tary planes a total of more the hat to collect money to ship the body ated a needed focus on some tough ques­ than mlllion miles. They ferried fighter and home." bomber planes to points of embarkation, As an 18-year-old WASP, Houghton was an tions. His commendable crusade to make towed targets for combat pilots to fire at engineering test pilot for training craft. the Fed responsible to the legitimate in­ and helped train other pilots. Thirty-eight "Some of the girls were so little that they quiries of Congress has been ably assisted of them were killed while on active duty. had to put pillows behind them to reach the by an excellent staff. I believe this effort They were all women and they belonged pedals," she recalled recently. brings distinction and responsibility 'to to the Women's Airforce Service Pilots Penny Houghton's current WASP duties in­ our committee and the chairman and (WASP). Though they were subject to mili­ clude alerting members in other states to this initiative deserves the complete sup­ tary discipline and lived in military barracks, come here for the Congressional hearings port of all Members. they got smaller travel allowances than men when the dates are set. WASP alumnae in­ doing the same job. They had been promised clude lawyers, scientists, employees of air­ military commissions, but were abruptly dis­ craft companies and housewives, many of LET'S NOT FORGET THE LADIES banded after the war so that they would not them grandmothers. take jobs away from men. So far, the more militant rhetoric associ­ Even now they are not eligible for mili­ ated with recent women's rights issues has HON. SHIRLEY N. PETTIS tary benefits. not been a part of the WASP style. They "We just didn't question things that favor a softer "sting." OF CALIFORNIA much" during the war, Margaret Boylan, a "Oh, it was (sex) discrimination, but we're IN THE HOUSE OF REPRESENTATIVES former WASP who ls now a branch chief for going to try not to hit at that point. It's Wednesday, June 1, 1977 the Federal Aviation Administration, said used so much," said Mrs. Joseph Haydu o1 recently. "We were so young, and we ex­ Palm Beach Gardens, mother of three and Mrs. PETTIS. Mr. Speaker, currently pected to be made part of the military all current president of the WASP alumnae. the Senate Veterans' Affairs Committee along." A WASP ferry pilot, she recalled that the is conducting hearings on legislation to "We were so pleased, so delighted, to have daily travel expense allowances were $7 for provide recognition to the Women's Air this chance to fly these aircraft," she said. male.:; and $6 for females deli verlng aircraft. Now times have changed and the collec­ "Did we get our meals for less? Did we pay Force Service Pilots for their service to tive consciousness of the WASP has been less for our rooms? It's little things like that their country during World War II by raised. Boylan and many among the esti­ that shows discrimination." deeming such service to have been active mated 850 WASPs stlll living are lobbying The FAA's Boylan was 21 when she entered duty in the Armed Forces of the United Congress for veterans' benefits. the WASP in 1942. She ferried planes, mostly States in order that they might receive Their leading champion on Capitol Hlll ls fighters. to bases in the U.S. and. Canada. veterans• benefits. Sen. Barry -Goldwater (R-Arlz.). who flew "We worked seven days a week, sun-up to As an article from the Washington with WASP ferry pilots during the war. He sun-down." Post-which I am inserting-indicates, says their performance was equal to or bet­ In some Instances, the women were used ter than that of their male counterparts. as psychological goads for the men, she these women courageously volunteered to Goldwater ls sponsoring legislation in the said. "Some men were refusing to fly certain ferry fighter and ·bomber planes, tow Senate that would entitle ·the women to vet­ planes-P-39s. B-26s-because they said targets for combat pilots to fire at and erans' benefits from the date of enactment. they had a lot of bugs and were killing train other pilots, in order to free male Rep. Lindy Boggs (D-La.) and Rep. James people. They had us fly the planes and that pilots for combat duty overseas. Addi­ Quillen (R-Tenn.) have introduced similar way they shamed the men into flying them." tionally, they test flew aircraft-includ­ bills in the House. The unfamiliar sight of female pilots ing the P-39 and B-26-which male The Veterans Administration and some created a stir sometimes. For instance, Boy­ veterans' groups have opposed past efforts lan recalled, "Sometimes we'd get on a com­ pilots refused to fly because they were 'to extend benefits to WASP alumnae, on the mercial flight (returning from a ferry run) considered to be unsafe. Thirty-eight of grounds that they would then have to grant with our uniforms and our parachutes on these women died while in service with similar privileges to other civllian groups who and other passengers would start getting off. theWASP's. served under military jurisdiction during They wanted to know, 'Why don't WE have Though promised "militarization," war time, such as the Merchant Marine. parachutes?' " June 1, 1977 EXTENSIONS OF REMARKS 17221 Congress first denied the WASP military ceiving the academy's citation of Fellow­ legislation now pending before the Con­ status in 1944, when the House defeated by ship Award. gress. 19 votes a bill that had been approved by The proceedings were highlighted by It should be obvious to even the short­ the Armed Services (then called Mllitary an address by the Honorable Simcha Affairs) committee and endorsed by the sighted proponents of NHI that the prob­ Secretary of War, the Army chief of statf Dinitz, Ambassador to the United States lems with Government health begin and the commander of the Army air forces. from the State of Israel. with the bureaucracy, not with the medi­ The bill failed largely because of pressure The academy was founded in 1927 as cal profession. As with any Government from civilian male pilots who had, as one an honor society of Jews who had at­ program, more Federal involvement WASP put it, "sat out the war in higher tained distinction in the arts, sciences, means more rules, regulations and paper­ paying jobs training pilots for the military; and professions. It has enjoyed the lead­ work which, in turn, lead to higher costs, as those Jobs were phased out, they were ership of several scholars who have decreased efficiency and a decline in the afraid they would be drafted as foot soldiers. served over the years as president, in­ quality of service. They wanted our fiylng jobs in order to a.void that." cluding Dr. Henry Keller, Dr. Morris Our colleague, Congressman PHIL Gen. H. H. (Hap) Arnold. chief of the Raphael Cohen, Dr. Chaim Tchernowitz, CRANE, has long been a staunch advocate U.S. Army air forces and organizer of the and Dr. Leo Jung. The academy's objec­ of free enterprise health care. As a mem­ WASP, told the women when they were dis­ tives are to encourage and promote the ber of the Ways and Means Committee's banded: "You have freed male pilots for arts, sciences, and all other departments Subcommittee on Health, he has a special other work ... The situation is that if you of knowledge; to stimulate an inter­ insight of the problems associated with continue in service, you will be replacing, change of views on all branches of learn­ Government involvement in health care. instead of releasing, our young men." ing; and to maintain friendly inter­ In recent article in Private Practice Almost three decades later, in 1972, some a of the WASP alumnae held a reunion at course among its members and fellows. magazine, Mr. CRANE spelled out some of Avenger Field, in Sweetwater, Tex., the old Today, Dr. Jung serves as president. these problems and the legislative pro­ Wasp training field. This and subsequent Other guiding hands of the academy are posals he has offered to correct them. get-togethers put the women, as Boylan said, Dr. Abraham I. Katsh, chairman of the Those who have resigned themselves "back in touch and in action." board, and Dr. Hirsch Lazaar SilV6Tman, to the inevitability of further encroach­ They had invited Col. Bruce Arnold (U.S. secretary. ments by the Federal Government in the Air Force, retired), son of their late Those honored as fellows of the acad­ health care field and the eventual enact­ "founder," to that 1972 reunion. emy, beside myself, were Dr. Edward ment of NHI should read Mr. CRANE'S "There was a parade, and lots of drinking and hell-raising," Arnold said, "and in a J. Bloustein. president of Rutgers, the article and heed his advice. Unless we weak moment, after three martinis, I volun­ State University of New Jersey; Ambas­ reverse the growing trend toward total teered" to help them take on the Congress. sador Dinitz; Dr. Leon Nemoy, professor Federal control of medical care and resist "Seriously, I felt responsible, in a way,'' at the Dtopsie University; the Honor­ efforts to nationalize U.S. medicine, the he added. "I wanted to finish up some 30- able Maxwell M. RaQb, New York at­ chaos experienced by countries such as year-old business my old man didn't have torney; the Honorable· William B. Great Britain and Sweden will result. If a chance t-0 finish." Thomas, university board chairman, that situation should come about, the Now his I Street office has become a base New York; and Dr. David Wechsler, past of operations for the WASP, the worktables doctors would not be the only ones to and some floor space littered with news­ chief psychologist at the Bellevue Hos­ suffer-the very health of every Ameri­ paper articles from several states, collected pital, New York City. can will be at stake. to show public interest in the WASP cause, For the benefit of my colleagues, I am and with other WASP documents. Arnold inserting Mr. CRANE'S article in the emphasizes that he is just an "unpaid, RECORD at this point: concerned citizen." LET'S GET THE BUREAUCRATS Do~TORS: LET'S GET THE BUREAUCRATS OUT OF Since the WASP re-activated their Capitol OUT OF PRIVATE MEDICINE PRIVATE MEDICINE! Hlll crusade, several attempts to pass legis­ lation in their behalf have failed. The group (By Congressman PHILIP M. CRANE) credits Goldwater with securing the Con­ HON. STEVEN D. SYMMS More than at any other time in recent gressional commitment to hold hearings on years, the nation's private free-choice system the matter. OF IDAHO of medical care is besieged by bureaucrats Goldwater is "very hopeful of the success IN THE HOUSE OF REPRESENTATIVES and politicians who would sink it under the of the blll," according to his legislative aide. Wednesday, June 1, 1977 weight of rules and regulations in the name "The ladles will make tremendous wit­ of quality and cost control. Physician and pa­ nesses." Mr. SYMMS. Mr. Speaker, for some tient alike are confused by the alphabet soup A spokesman for the Veterans Admlnis­ time now there has been an increasing of medical bureaucracies-HMOs, UROs, tratlon did not rule out the possiblllty that, clamor for the enactment of universal, PSROs, HSAs, etc. We are constantly being with the change of administration, the mandatory national health insurance, warned that our medical system is in a crisis agency might soften in its opposition to ex­ mainly confined to special interest groups state due to rising costs, and the medical pro­ tending benefits to the WASP members, but fession itself is being portrayed as a group of he said there would be no comment either and their advocates in the Government greedy individuals more concerned with "rip­ way until the hearings. who seem to be oblivious to the enormous ping off" Medicare and Medicaid dollars than Meanwhile, Arnold said, "The women do tax burden such a plan would entail, not healing the sick. a lot of 'Hangar-flying' when they get to­ to mention the disastrous effect it would And what is the solution being proffered to gether, tell each other lies about what they have on health care in this country. resolve this "crisis"? Why, National Health did during the war, just like men do. Only I President Carter has pledged to send an Insurance, of course. Rather than admit their think they do it better than men." NHI proposal to Congress in 1978 and, premises were incorrect, the social tinkerers in the meantime, has put forth plans to ascribe the failures of their proposals to two limit hospital costs and -expand Federal limitations: not enough money and not enough regulations. If only they had more of JEWISH ACADEMY OF ARTS AND health programs for children as steps to­ these, they cry, their programs would have SCIENCES HOLDS 51ST CONVOCA­ ward the enactment of NHI. worked. Instead of shelving their experiments TION Aside from the enormous costs of NHI as wasteful expenditures of resources-be or my philosophical opposition to the in­ they Federal housing projects, job training volvement of the Federal Government in programs, or social welfare schemes-more HON. JOSHUA EILBERG an area which should properly be left to regulations and more money to throw down OF PENNSYLVANIA the free market, the Government's track the rat holes are called for, with little cor..­ cern for the taxpayers' pocketbooks. IN THE HOUSE OF REPRESENTATIVES record in the management of health pro­ grams, not to mention the U.S. Postal It didn't take an expert to predict that, Wednesday, June 1, 1971 when Medicare and Medicaid were adopted a Service, leaves much to be desired. Costs decade ago, costs would sky rocket, as in­ Mr. EILBERG. Mr. Speaker, on in the medicare and medicaid programs evitably happens with any open-ended pro­ May 15, 1977, I had the honor of at­ have skyrocketed to the point where they gram featuring wide eligibility and including tending the 5lst Convocation of the Jew­ represent over 80 percent of the Federal little to discourage unnecessary utilization ish Academy of Arts and SciencEs, at the Government's expenditures for health. of available benefits. Now, it ts fashionable to Dropsie University in Philadelphia, Pa., Fraud, abuse, and mismanagement in attack the medical profession for the ills in where I was among seven persons re- these programs have resulted in reform these programs instead of affixing the blame 17222 EXTENSIONS OF REMARKS June 1, 1977 to the bureaucrats responsible for adminis­ ment of new medical techniques. In addi­ PSROs, the Secretary of HEW can make a tering them. tion, there is always the possibility that a PSRO designated without having to submit The medical profession, after a valiant re­ physician could be sued for malpractice if it to a physician poll. Understandably, many sistance, lost the Medicare battle; but there the patient didn't respond as expected to the physicians feel compelled to give in now are indications that it has already given in to treatment given in accordance with the while they have input into the designation NH! without a fight. Despite a campaign norms set up by the PSRO. The confiden­ process. But medical societies that have op­ promise by Jimmy Carter to put NH! into tiality of patient medical records is threat­ posed PSROs should not give up now, with effect early 1ri his administration, many ened as PSRO clerks and other medical per­ the deadline a year off, while there is still factors, such as the enormous price tag and sonnel punch these statistics into computers time to repeal the legislation or win the court procedural problems in the Congress, weigh in order to determine PSRO standards and challenges or both. To do so would be to against it. However, if the AMA and other any deviation from them. widen the door for NHI. organizations in the medical care field con­ By far the greatest threat posed by PSROs With a growing awareness of the right to tinue to support some form of NH! on the is that they are the harbinger of things to privacy, the lack of protection for confiden­ grounds it is "inevitable," then it becomes a come under NIH. In fact, HEW bureaucrats tial patient records is of great concern today, self-fulfilling prophecy. even boast that PSROs are the perfect ve­ especially with the Federal government tak­ If our medical system is indeed approach­ hicle for carrying out such a plan. Dr. ing an ever-increasing role in providing med­ ing a crisis due to rising costs, it is not be­ Michael J. Goran, Director of the Bureau of ical care. Some government agencies now cause of the lack of government planning or Quality Assurance in HEW's Health Serv­ have the authority to inspect the records of intervention, but rather because of the sheer ices Administration, stated in testimony be­ all patients, not just those receiving Federal weight of government programs, regulations, fore the House Committee on Interstate and aid-a practice required of PSRO employees and the paperwork they entail. Instead of Foreign Commerce last February: in order to set up their standards or norms racing full steam ahead into National Health The next 3 years will see the full imple­ for medical care. Insurance, which would lead to a disastrous mentation of PSROs in hospitals across the Technically, PSROs are authorized and socialized system of medical care, we need to country. By the end of 1978 all Medicare and funded only to review Medicare, Medicaid, relieve our private doctors and hospitals of Medicaid hospital admissions will be under a.nd child and maternal health cases. How­ the inhibitive controls and uncontrollable PSRO review. PSROs, which currently are ever, in order to determine these initial costs imposed on them by the Congress and conducting hospital review, will extend re­ standards and norms, it is inevitable that the Federal bureaucracy. A government that view to longterm care facilities. PSROs may private cases will have to be taken into ac­ can't even run a medical program for the also have expanded review for private in­ count to provide a large enough sample for poor and aged or deliver the mail on time can surance companies, an activity which we statistical purposes. In fact, HEW bureau­ hardly call itself qualified to administer NH!. are encouraging once Federal review is in crats admit that PSROs are encouraged to To alleviate many of the detrimental side place. The surveillance which the PSROs contract with private plans (Blue Cross, for effects of Federal intervention under which apply to delivery of medical care should as­ example) to conduct private reviews as well, our medical care system has suffered, I in­ sure that services are rendered within ac­ though the Federal Government would only troduced a bill la.st August (HR 15043) that cepted standards of efficlency and effective­ pay for the portion of cases reviewed that would guarantee quality medical care to all ness. This PSRO review system will consti­ were under Federal care. At present, there is Americans by providing Congressional over­ tute a nationwide framework for quality as­ no real way of knowing whether PSROs a.re sight of proposed regulations, eliminating surance which will be available for National stepping outside their bounds and peeking utilization review and PSRO procedures, and Health Insurance. into private care records without authoriza­ insuring patients who are not receiving Fed­ It is clear that while Congress may have tion. My blll would forbid, under penalty of eral assistance for medical care that their intended PSROs to serve as quality and cost law, the acquisition or inspection of records medical records will not be surveyed by the control mechanisms for Medicare and Medic­ of those not receiving Federal medical assist­ prying eyes of Federal bureaucrats. aid, a worthy-sounding if somewhat dubious ance without the patient's express written All too often, Federal departments and purpose, HEW bureaucrats are practically authorization. agencies have adopted regulations contrary drooling over its potential relative to NHI. _ While the passage of this legislation is not to the intent of Congress as set forth in the Though the program started out slowly, the whole answer to the problem of govern­ relevant legislation. The Congress then cries PSROs are well on their way toward becom­ ment intervention in medicine, it would re­ loudly about "bureaucratic bungling," and ing institutions. Out of the 203 areas desig­ solve a number of problems. First of all, it hastens to restate Congressional intent while nated for PSROs, there are 100 conditional would discourage malpractice suits due to ignoring the fact that it is the Congress' PSROs in existence receiving funds and per­ perceived deviations from arbitrary "norms." abdication of power that caused the prob­ forming review and 20 more are in the plan­ Second, it would encourage innovation on lem in the first place. It ls politically ex­ ning stage. Authorization has been given to pedient to pass "consumer-oriented" legisla­ start PSROs in the remaining areas in FY the part of doctors in medical treatment and tion, then blame the bureaucrats when 1977. The PSRO budget for FY 1977 ls $90 insure private patients that the nature of chaos erupts, as in OSHA, or the doctors in mlllion, including $37 million in Social Se­ their treatment would be kept confidential. the case of Medicare and Medicaid. curity trust funds. The preliminary budget Third, it would promote the efficient utmza­ A section of my comprehensive bill would request for FY 1978 is $150 million. PSROs tion of manpower by lifting the paperwork provide for a Congressional review period of reviewed over one million Federal admissions burden. Fourtl:i, it would maintain freedom 90 legislative days before proposed Federal in FY 1976 and are expected to review five of choice in the acquisition of medical ca.re: rules in the medical care field would go into mlllion Federal cases, or one-third of the and finally, it would hold down the spiral in effect, giving us the opportunity to examine total U.S. hospital admissions, when the pro­ medical costs due to factors other than all their ramifications, both good and bad. gram is fully implemented in 1978. Virtually infiation. During that period, Congress could either no medical care institution or profession will But as important as any benefits that pass a resolution opposing the rule, or allow be left untouched, and the effects of PSROs might be gained from the passage of this bill it to go into effect automatically if no con­ will be felt directly or indirectly by every is the need for the medical profession to gressional action ls taken within those 90 private patient. stand fast and hold the line against further days. Though I am sure there would be some While the medical profession has resisted Federal encroachment. · It is hard enough howling in both the bureaucracy and the the implementation of PSROs in many areas fighting the battle here in Congress without Congress if this proposal were adopted, it is and has taken the issue to court, there is a the loss of faith from within the ranks of about time that we stopped passing bills to feeling among physicians that PSROs are an the medical profession. Moreover, at the bar­ give Federal officials free rein and started inevitability that must be lived with. The gaining table, 1! you start from a compro­ taking responsibility for the Frankenstein doomsayers moan that it is better to have a mise position, you shouldn't be surprised monsters we have created. piece of the action than to let someone else when the final agreement is even more of a Current regulations in the utllization re­ run the game-or better to get stabbed in the compromise. Rather than support a half­ view organizations, in the Medicare, Medic­ back than shot through the head. But the hearted proposal for NHI in the mistaken aid and child health programs, and in the battle isn't lost yet. In December 1975, Con­ belief that it has a chance of being adopted Professional Standard Review Organizations gress extended the date before which only as a substitute for the radical comprehen­ (PSROs), pose a serious threat to the tradi­ physician groups can be designated as PSROs, sive plans, professional organizations in the tional doctor-patient relationship. Physi­ until January 1, 1978. Under the process cur­ medical care field must firmly state their cians are placed in the position of having rently in operation, the Secretary of HEW opposition to NHI and be willing to put their to tread a narrow path within the bounds must notify all doctors in a PSRO area of an words into action. There's no use kidding of PSRO norms and standards or be pre­ application. If 10 percent report that the ourselves-those who favor proposals such a3 pared to justify completely any deviation group requesting designation doesn't repre­ Kennedy-Corman have no love. or even sym­ from the average. No longer can a doctor sent them, a poll is taken. If 50 percent of pathy, for the medical profession. rely on his own good judgment in treating those responding to the poll state the group I have been blunt, but there is no place patients receiving Federal medical care doesn't represent them, the group can't be for niceties when the existence of private benefits, unless he wishes to face a moun­ contracted as a PSRO. However, after Janu­ medical care is at stake. In this compre­ tain of red tape and a review board. Thus, ary 1, 1978, if an agency has been voted down hensive blll, which I will reintroduce early these regulations discourage individualized through this polling process or if the local in 1977, I have attempted to reverse the and innovative treatment and the develop- medical group has a policy in opposition to growing trend toward total Federal control June 1, 1977 EXTENSIONS OF REMARKS 17223 of medical care. But much more effort is This bill, the Veterans Disability Com­ deserves credit for confronting the long­ needed if we are to avoid the chaos experi­ pensation and Survivors Benefits Act, neglected energy crisis, his plan has many enced by such countries as Great Britain and faults. In Congress, most of its numerous Sweden. Whether it is forthcoming is up also provides relief for the widows and provisions have already come under attack. to you. children of veterans who die of a serv­ Presumably, the surviving fragments will ice-related cause. Six percent increases eventually be patched together to legislate are also provided for: Disability com­ the great national et!ort which Carter has EXTENDING VETERANS EDUCA­ pensation for disabled veterans; de­ urged upon us as the "the moral equivalent TIONAL BENEFITS pendency and indemnity compensation of war." for survivors of veterans; additional But such piece-by-piece criticism will miss the plan's most serious fault: that, wittingly compensation given to dependents of or not, it is a deception, an exercise in politi­ HON. BENJAMIN A. GILMAN veterans with service-connected disabili­ cal sleight-of-hand in which the words about OF NEW YORK ties of at least 50 percent; and grants an what the plan is supposed to achieve say IN THE HOUSE OF REPRESENTATIVES increase in the annual clothing allow­ one thing and the numerical facts about ance of approximately 6 percent. what it would achieve often tell us the oppo­ Wednesday, June 1, 1977 By passage of H.R. 6501, Members of site. Mr. GILMAN. Mr. Speaker, I recently the House voted their support for in­ The plan claims to be an equitable pro­ introduced H.R. 6775, legislation which gram of energy conservation, but in fact saves creased compensation for certain dis­ little energy and heavily favors industry would: First, entitle a veteran who served abled veterans who had suffered the loss over consumers and the rich over the poor. 18 months or more of active duty to 54 of one of a pair of vital organs, such as Carter has promised to use nuclear power months of educational assistance; sec­ the loss of one hand or one foot. Prior as only a "last resort," but the plan proposes ond, eliminate the time limitation for to this bill, these veterans so impaired a sharp increase in nuclear power plant con­ completing an approved program of could receive disability compensation at struction. study; and third, extend eligibility for a rate applicable to the loss of both or­ The plan claims to ". . . stimulate the these benefits to World War II veterans development of a large solar market," but gans, only if that organ were an eye, would in fact block solar energy from the and veterans of the Korean and Vietnam kidney, or loss of hearing in an ear. The markets that it could now enter. conflicts. House-ratified bill extends the disability The plan is supposed to be a means of Previous legislation providing veter­ compensation to veterans who have lost gaining time before we decide how to make ans educational benefits has acknowl­ a hand or foot due to service-related the inevitable transition to a long-term re­ edged this Nation's immense debt to its causes, and subsequently loses, or loses newable energy sou1·ce, but in fact it covertly veterans. The legislation I introduced makes that choice and commits us to a nu· the use of, the other hand or foot due to clear future. maximizes the opportunity a veteran will nonservice-related causes. have to avail himself of these benefits. And all this raises a final question: If the Citing the responsibilities of raising Finally, in acknowledgment of the plan is not what it seems to be, then what is children and developing a career, which discrimination existing against disabled it really? veterans of World War I in denying them According to Carter, " ... the cornerstone often impinge upon the time a veteran of our policy is to reduce demand through may have to devote to continuing his eligibility for automobile assistance al­ conservation," encouraging the popular im­ education, I noted that there is little jus­ lowance and automotive adaptive equip­ pression that the plan is primarily a way tice in terminating a veteran's eligibility ment, my colleagues of the House of of meeting the crisis by shrinking energy de­ for these benefits because his obligations Representatives are to be applauded for mand rather than by increasing supplies. to family and job have prevented him waging a victorious battle in the offen­ It comes as something of a surprise there­ from completing formal course require­ sive for equitable assistance for disabled fore, to discover from the National Energs veterans. Plan (the detailed 103-page description re­ ments within an arbitrarily restrictive cently released by the White House) that in time limit. 1985, the plan's target year, total U.S. energy A number of my colleagues have indi­ demand would be the equivalent of 48.3 cated that they concur with these con­ DR. BARRY COMMONER'S ARTICLE: million barrels of oil per day without the clusions and wish to cosponsor this leg­ THE HIDDEN JOKERS IN CARTER'S plan and 46.4 million barrels" of oil per day islation. Accordingly, I insert the names ENERGY DECK" if the plan is implemented. This amounts to only a 4 per cent reduction in total of the Members cosponsoring H.R. 6775 demand. to be listed at this point in the RECORD: HON. RICHARD L. OTTINGER However, it must be kept in mind that the COSPONSORS OF H .R. 6775 total energy demand expected in 1985 is made OF NEW YORK Mr. Badillo, Mr. Baucus, Mr. Cornwell, Mr. up of the present actual demand plus the Conyers, Mr. Corrada, Mr. D'Amours, Mr. IN THE HOUSE OF REPRESENTATIVES increase in demand anticipated in the next Downey, Mr. Duncan of Tenn., Mr. Edwards Wednesday, June 1, 1977 8 years. The new plan can, of course, only of Okla., Mr. Fauntroy , Mr.· Fithian, and Mr. affect this future period, so that it is per­ Gephardt. Mr. OTI'INGER. Mr. Speaker, last tinent to judge the plan by how it would Mr. Hawkins, Mr. Hollenbeck, Mr. Kindness, Sunday's Washington Post contains a meet the increase in energy demand t hat is Mrs. Lloyd of Tenn., Mr. Minet a, Mr. Mitchell very alarming analysis of President Car­ expected to occur between now and 1985. of N.Y., Mr. Murphy of Pa., Mr. Ottinger, Mr. ter's energy program by Dr. Barry Com­ According to the plan, between 1976 and Pepper, Mr. Rangel, Mr. Spence, and Mr. 1985 16 per cent of the additional demand Yatron. moner, director of the Center for the would be met through conservation an d 84 Biology of Natural Systems at Washing­ per cent by increasing the energy supply. ton University, St. Louis and chairman Coal would meet 50 per cent of t he added A VICTORY FOR DISABLED of the Scientists' Institute for Public In­ energy demand; nuclear power, 23 per cent; VETERANS formation. The column raises many im­ domestic oil, 9 per cent; and solar energy, portant questions about the real impacts 1.6 per cent. Oil imports would remain es­ and effects of the Carter program, indi­ sentially unchanged. HON. CARDISS COLLINS Judged by these numbers, rather than b y OF ILLINOIS cating in many respects consequences its pro.se, the plan would rely more on nu­ IN THE HOUSE OF REPRESENTATIVES quite the opposite of those claimed by clear power (23 per cent) than on conserva­ the administration for the program. Wednesday, June 1, 1977 tion (16 per cent) to meet new demand. The While the article may be unduly harsh, plan's "cornerstone" would appear to be mis­ Mrs. COLLINS of Illinois. Mr. Speaker, it deserves consideration because of the laid. I wish to express my satisfaction over the seriousness of the questions raised, and The administration's rhetoric is concen­ passage of three bills by the House of the need to address them in the actions trated on the voluntary "sacrifices" needed to we take on the program in Congress. I cut energy demands and on the plan's goal Representatives on Monday, May 23: of equitably distributing this burden among H.R. 1862, H.R. 6501, and H.R. 6502, am inserting the article for the benefit different sectors of society. In fact, the main which increase compensation benefits of my colleagues who may have missed stress of the plan is to redistribute energy and extend automobile assistance to dis­ it while Congress was in recess: supply-and to do so inequitably. abled veterans. THE HIDDEN JOKERS IN CARTER'S ENERGY BLOW TO THE CONSUMER Former veterans whose livelihoods DECK Consider, for example, how energy supply have been impaired by injuries resulting (By Barry Commoner) would be shared between consumers and in­ from military service will receive assist­ The popular response to the National En­ dustry. Their relative shares can be estimated ance through enactment of H.R. 1862. ergy Plan is that, although President Carter from the division of demand among the three 17224 EXTENSIONS OF REMARKS June 1, 1977 conventional energy categories: residential avoiding rampant inflation and maintaining Thus, rather than encouraging economic and commercial (which supports consumers economic growth." Here again, the plan's growth, the plan would affect the industrial and the sale of consumer goods) ; industrial promising words point in one direction and uses of energy, capital and labor in ways that (which supports industrial production) and its actions in another. It is widely recognized would worsen the basic problems that now transportation (which ts divided between that the sharply increased energy prices man­ threaten the economy-unemployment, in­ consumer passenger traffic and the industrial dated by the plan would only accelerate the flation and the shortage of investment freight). current, unprecedented escalation of energy capital. In 1976, each of the first two sectors re­ prices, which is already responsible ifor much A HIDDEN NUCLEAR COMMITMENT ceived about 37 per cent of the total energy of the recent increase in the rate of inflation. Finally, we come to the climax of this exer­ budget and transportation received 26 per Also, since the sharp rise in energy prices cise in political conjuring, in which the cent. With the plan in effect, only 15 per cent makes predictions of future costs highly un­ plan-ostensibly a program to trim the fat of the energy added during 1976-1985 would certain, it considerably increases the invest­ out of the U.S. energy budget in order to be allotted to residential/commercial de­ ment risks involved in building new indus­ facilitate a later shift to renewable sources mand and 74 per cent to industrial de­ trial plants, contributing to the present lag of energy-turns into something quite dif­ mand, with transportation receiving 11 per in industrial capital investment. ferent: a long-term commitment to breeder­ cent. WASTING CAPITAL supported nuclear power. In mandating this drastic shift in energy The plan, too, would reduce the efficiency The plan acknowledges the well-known allotments, the administration technicians fact that the root cause of the energy crisis have changed the ground rules that usually with which capital is used to produce en­ ergy and therefore tend to worsen the short­ is our present, almost exclusive dependence govern computations of future energy de­ on non-renewable energy sources. As sup­ mand, which are customarily based on past age of inve3tment capital. Capital invested in domestic oil production yielded annually plies decrease, the law of diminishing returns trends. For the last 10 years, the share of takes hold and energy becomes ever more the national energy budget devoted to resi­ (in 1974) about 17 million BTU (British thermal units) per dollar; about 2 million costly to product, driving prices upward at dential and commercial uses has increased an escalating rate. Obviously-as the plan steadily while the share used by industry BTU per dollar when invested in strip-mined coal; 29,000 BTU per dollar for coal-fired also acknowledges-a transition from our has declined. The projections on which the present non-renewable energy sources to re­ plan is based sharply reverse this trend. As electric power; and only 22,000 BTU per dol­ lar for nuclear power. In general, the capital n:ewable sources is the only long-term solu­ a result, whereas the plan assigns 74 per cent tion. of the increase In demand in 1976-1985 to efficiency of energy production technologies is highest when fuels are used for direct In practical terms, only two renewable en.. industry, the oomparable figure projected ergy sources are in being and would be by the Federal Energy Administration on heating and lowest when fuels are used to ' produ.::e electricity. Yet, perversely, accord­ available at the turn of the century when, at the basis ~f past trends ls 44 per cent, with the very latest, the transition would need the residential/commercial sector receiving ing to the National Energy Plan, 53 per cent of the energy added in 1976-85 would be used to begin. One choice is solar energy. The 56 per cent and transportation no increase other option is nuclear power, with breeder at all. Although this shift in favor of indus­ for electricity and 36 percent for direct heat, reactors used to extend the life of the non­ trial energy consumption 1s not attributed in contrast with 1976 when only 28 per cent renewable fissionable fuels-which would to the plan in the administration documents, of the national energy budget was used for otherwise run out in 20 to 30 years-for per­ it is in fact incorporated In it and 1s just as electricity and 46 per cent for direct heat. haps 1,000 years or more. much a policy decision as the plan's other This shift would sharply increase the aver­ As long-term solutions to the energy crisis, proposals. age amount of capital needed to produce a the nuclear and solar options are mutually The shift in demand projected by the plan unit of energy. exclusive. Nuclear power requires a highly would have serious consequences for consum­ If the plan is implemented, in 1985 about centralized energy system, based on a rela­ ers, who, under the plan, would be allotted 54 per cent of U.S. electricity would be pro­ tively few very large and extremely expen­ much less energy than they would expect duced by coal-fired plants, 25 per cent by sive installations; it would produce only nucelar power plants, 12 percent by oil-and to receive in the next 8 years on the basis electricity for power-grid distribution. An of other projections, such as FEA's. This gas-fired plants and 10 percent by renewable energy system based on solar energy would amounts to a form of rationing, with all the sources, chiefly · hydroelectric power. This be highly decentralized, consisting of numer­ problems entailed when involuntary restric­ result3 from a plan-mandated shift from oil ous relatively small units; at present, it tions are imposed on an economic good as and natural gas to coal and nuclear power. would produce only direct heat, and latu, essential to one's living standard as energy. Since the capital requlrements of power when solar electric power becomes economic Further, the plan imposes a much heavier plants fueled by oil or gas are relatively low, much of it wm be produced directly wher~ burden of voluntary conservation on the somewhat higher for coal-fired plants and it is being used. residential/commercial sector than on the in­ highest for nuclear plants, the plan would As a result, each source would require its dustrial sector, relative to their shares of reduce the overall efficiency with which in­ own kind of national system with very little vested capital produces electricity. overlap; the nation, already short of capital, added energy. Far from equitably distribut­ Thus, the plan would intensify the demand ing the burdens of the 1976-85 period of en­ for capital for energy production, draining could afford to build only one of these sys­ ergy restrictions, the plan would heavily favor capital from other investments, so that the tems. If the plan is indeed designed to gain industry, assigning most of the burden to energy sector would be impeding the eco­ time before the choice between two options consumers. nomic development of its own customers. is made, clearly it ought not foreclose one or Among the plan's more elaborate features Moreover, by diverting energy supplies the other of them. are several for taxing fuel. Recognizing that preferentially to industry, the administra­ As already indicated, the plan mandates the resultant increase in the price of energy tion's program would encourage the post-war the massive introduction of light water nu­ would place an especially heavy burden on trend toward energy-intensive industries clear reactors at a rate far exceeding the pace low-income families (energy costs take a rel­ (that is, those with a low economic yield achieved in the last few years. Although only atively large part of their budgets), the plan relative to the amount of energy used). Inas­ a few nuclear plants have been ordered in envisages a system of rebates to relieve this much as industries that are energy-intensive the last two years, the 70-90 new 1,000-mega­ burden. However, the complex bureaucratic are also capital-intensive, this aspect of the watt plants that the plan requires would machinery that would be created to admin­ plan would also increase the overall indus­ need to be built in the next 8 years. By the ister such schemes would only encroach on trial demand for capital. Since in the next turn of the century, nuclear power plants the funds available for other government, decade the economy is expected to be nearly would generate a major part of the nation's social programs-given that Carter plans to 30 per cent short of needed investment cap­ power, and since we would then heavily de­ balance the budget-on which the poor most ital, the plan's heavy impact on the demand pend on electricity, there would be no choice heavily depend. Thus, the plan's acknowl­ for capital is hardly a good way to "maintain but to continue the nuclear fission systems. edged cost to the poor would only be trans­ economic growth." With uranium supplies depleting and rapidly ferred from one pocket to another, with the Contrary to its claim of maintaining em­ rising in price, it would then be necessary likelihood that the poor will only suffer in ployment levels, the plan is likely to do the to extend the supply of fissionable fuels­ the process. reverse. Many of the industrial sectors which by adding breeders to the system. Once more, the plan's words and its pro­ use energy and capital intensively tend to be In keeping with its proclivity for beguiling posed actions are in conflict. The plan speaks correspondingly low in their demand for us with one goal while in fact moving toward of equitably sharing the burden of conserva­ labor. 'J1he outstanding example is the petro­ another, the plan's commitment to a breeder­ tion-of voluntary reductions in demand­ chemical industry, which not only burns en­ based nuclear program is artfully tucked but the_ real inequity of the plan lies else­ ergy but uses it as raw materials, flooding away in a statement which refers to a presi­ where: 1n a thus-far unmentioned diversion markets previously held by energy-conserv­ dential action that is widely regarded as of scarce energy supplies from consumers to ing natural materials (such as leather. cotton anti-breeder: "It is the President's policy to industry and in a new bureaucracy that and wool) with synthetics. As the energy­ defer any commitment to advanced nuclear would further jeopardize the financial in­ conserving, labor-intensive industries are technologies that are bae:ed on the use of security of the poor. displaced, technological unemployment­ Plutonium while the United States seeks a The plan, we are told, is supposed to solve which now accounts for about half of the better aporoach to the next generation of energy problems " ... while protecting jobs, unemployment rates-is bound to increase. nuclear power than is provided by plutonium June 1, 1977 EXTENSIONS OF REMARKS 17225 recycling in the plutonium breeder ... The amounts of new faxes-estimated at $80 bil­ pared to Japan's 9.5 per cent, Italy's 5.7 per President has proposed to reduce the fund­ lion per year by 1988-that, according to the cent and West Germany's 5.3 per cent. Thus, ing for the existing breeder program, and to plan, would be collected largely from con­ the capital shortage threatens the long-held redirect it toward evaluation of alternative sumers. Despite original claims that these U.S. dominance of world markets for manu­ breeders, advanced converter reactors and funds would be returned to the people as re­ factured goods-a spectre which is likely to other fuel cycles." (Emphasis added) By the bates, the chairman of the House Energy haunt the halls not only of the Chase Man­ turn of the century then, the nation would Committee, Rep. L. Ashley (D-Ohio), has hattan Bank but of the White House as well. heavily depend on fuel-short nuclear reactors said that ". . . in this area, as in others he Perhaps the National Energy Plan is really a and, as promised by this statement, an "al­ [Carter] has been soft." response to this crisis, which in some quar­ ternative breeder" would be ready to feed Given the "flexibility" which Carter wants, ters might be regarded as the more ominous them for a thousand or more years. the tax funds could be diverted to industry, threat. Meanwhile, the plan would have effectively Lockheed-style. A likely recipient of such All this suggests that the plan must be foreclosed the choice of the solar route. For subsidies might be the nuclear power in­ scrutinized more profoundly than it has been one thing, research on alternative breeders­ dustry. General Electric has already informed thus·far. While.its numerous, smaller defects perhaps based on thorium rather that plu­ the administration that, because of con­ can be corrected in Congress, there is one tonium-would, like the present development tinued unprofitability, it may abandon its fundamental generic fault which cannot be of the plutonium breeder, be so expensive nuclear operations. Government subsidies reconciled by piecemeal modification: The as to preclude all but minor research on could be justified as a means of avoiding the plan would commit the country, without its other energy systems. Moreover, as antici­ demise of a major supplier of nuclear plants consent, to an ominous nuclear future and pated by the National Energy Plan, electricity when the plan calls for building them at an deprive the people of the United States of would heavily replace oil and natural gas in unprecedented rate. their democratic right to direct the only step the residential/commercial sector-where Such an approach would nicely fit a pre­ that can solve the energy crisis rather than the largest, unsaturated market for electrical scription for meeting the capital shortage delay it--the transition to renewable energy. appliances is in space heat, hot water and air­ that has been frequently voiced in business The answer is to begin a.n open public debate conditioning. This would effectively block circles: to cut consumer spending so that on these, the real issues of the energy crisis. solar energy from the one market that is savings will grow and produce more invest­ presently open to it, which, as it happens, ts ment capital. As a New York Stock Exchange also space heat, hot water and (shortly) air­ report has put it, "Essentially, the task of JUVENILE JUSTICE conditioning. Thus, if we adopt the National accumulating enough capital means that Energy Plan, at the turn of the century, when people must save more and consume less." the nation would have to choose its renew­ The plan's energy tax program could re­ HON. CARDISS COLLINS able ener5y source, we would find that this spond to this admonition in two ways: If, OF ILLINOIS as the administration hopes, the stand-by crucial decision had already, long ago, been IN THE HOUSE OF REPRESENTATIVES made. gasoline tax successfully reduces consump­ tion and the resulting savings were not de­ The decision is portentous. The nuclear Wednesday, June 1, 1977 route would saddle the country with the voured by inflation, they could be accumu­ lated by the banks and thus increase the Mrs. COLLINS l')f Illinois. Mr. Speaker, risks of radiation for thousands of years. It I am pleased by the passage of H.R. 6111, "·ould concentrate the nation's energy sys­ supply of investment capital. On the other tem in a few, necessarily huge and expensive hand, if the gasoline conservation program the Juvenile Justice and Delinquency units that would inevitably fall under the failed, and the tax was imposed, the result­ Prevention Act Amendments, which ex­ control of either mammoth corporations or ing funds, accumulated by the government, tend related youth programs for an addi­ the government. The enormous damage that could be used as subsidies for the capital­ tional 3 years. could be inflicted by even a few handfuls of sl10rt energy industry. This would bring us full circle, back to The need for such an extension was stolen nuclear fuel-turned into home-made obvious to even the most cursory scanner bombs, or even used deliberately to con­ President Ford's proposal to spend $100 bil­ taminate the environment--would, with lion of tax money to subsidize nuclear power, of newspaper headlines. Day after day, equal inevitability, place nuclear installa­ synthetic oil and other capital-intensive en­ one opens the chronicles to find blaring tion's under military control. The nuclear ergy operations. The new administration's headlines about juvenile-committed vio­ route could easily end with the nation's en­ energy plan could accomplish the same thing, lence in schools and vandalism are on the ergy system, and therefore its entire life, but this time under the banner of conserva­ increase. Even more alarming is the fact or military force could capture control of its tion-a way of convincing the public "to save more and consume less" that miP-ht be that juvenile arrests for serious crimes­ few, central generating stations. robbery, aggravated assault, forcible The solar route goes the other way. Be­ regarded less suspiciously than if its origins in the business community were mere rape, and homicide-increased between cause sunshine falls everywhere and small apparent. solar installations are as efficient as large 1960 and 1973 by ?.~7 percent. ones, solar energy is inherently decen­ This hypothesis might also explain one of It is critically important to break the tralized; there is no economy of scale in the plan's most puzzling features-that sup­ pattern of juvenile delinquency because most solar operations, and businesses of all port for mass transit and the railroads is studies have repeatedly shown that ju­ sizes could compete equally. Solar energy wholly absent from the plan, although they are four to 10 times more fuel-efficient than veniles committing violent crimes will can be directly controlled by those who use often continue to do so upon reaching it. The solar route fosters democracy. autos, planes and trucks-far more effective The nation's future hangs on the choice ways to conserve energy than most of the adulthood. Not a problem that will be between these two routes. We cannot afford plan's measures. This would require huge easily cured, it involves complex legal and to make the choice in the dark, without capital expenditures that would benefit con­ social dilemmas. The passage of H.R. open, public debate. But that is what would sumers rather than industrial production. 6111 was an important and worthy action But that is not what the business commu­ happen if the National Energy Plan were because it encourages a comprehensive adopted as it now stands. nity has in mind, for the capital shortage about which businessmen complain is for in­ approach toward creating a national BUSINESSMAN'S BONANZA vestment in profit-making enterprises, strategy for dealing with juvenile de­ How can we explain the striking dispari­ among which mass transit and most railroad linquency. ties between what the plan says it would operations are rarely included. I am particularly encouraged by the do and what it would actually do? The least Behind these considerations lies a funda­ provision calling for the National Insti­ interesting explanation would be that it is mental problem of the U.S. economic sys­ tute for Juvenile Justice and Delinquency very difficult for a newly appointed staff ln tem-that its rate of investment in new pro­ only three months to produce a consistent ductive machinery is lagging far behind the Prevention to begin studies, "assessing plan to reorganize the nation's fearfully rest of the industrialized world. In the the ill'ftuence of family violence, sexual complex energy system. It is more interest­ United States between 1960 and 1973, 13.6 abuse and media violen.:!e on delinquency, ing to work backward from the real effects per cent of the gross national product was interstate placement of juvenile offend­ of the plan (as distinct from its claims) in devoted to industrial investment, less than ers, the role .of recreation and arts in trying to discover what unexpressed goal it Italy's 14.4 per cent and far less than our delinquency prevention, and the extent might serve. main competitors in world trade, Japan (29 and ramifications of disparate treatment A major clue ls that the plan would heavily per cent) and West Germany (20 per cent). of youngsters within the justice system divert energy supplies toward industry, while This deficiency could be readily eliminated if on the basis of sex." I believe that this simultaneously worsening the shortage of the United States were to reduce the military investment capital, thereby severely limiting budget's share of the GNP to match that of provision of the bill illustrates a real the ability of industrial development to ab­ the losers of World War II. commitment toward developing alterna­ sorb the new supply. HoweYer, another out­ As a result, in the last decade labor pro­ tive and innovative solutions to the ju­ standing feature of the plan can resolve ductivity (output per man hour) in U.S. venile delinquency problem. It is obvious this seeming inconsistency; the missing manufacturing industry has increased at nn that many of the solutions of the past capital could be provided by the huge average annual rate of only 2 per cent, com- have been less than effective. 17226 EXTENSIONS OF REMARKS June 1, 1977 LEGISLATION TO RESTORE A BAL­ the currency by reducing Government Federal Government and its budget. In ANCED BUDGET AND A SOUND spending. It is the conservative alterna­ 1950 the Federal Government spent $42.6 ECONOMY tive to the liberal policies of greater billion; the present estimate for 1978 is Government intervention and spending $464 billion, a more than tenfold in­ which have brought us inflation and re­ crease. In terms of Federal spending per HON. LARRY McDONALD cession. OF GEORGIA person, the figure has risen from $283 in IN THE HOUSE OF REPRESENTATIVES For the past 40 years the dominant 1950 to approximately $2,100 per person political trend has been the growth of this coming fiscal year. Wednesday, June 1, 1977 the welfare state, which is a process of The following table illustrates that this Mr. McDONALD. Mr. Speaker, today redistributing income from those who rapid growth in Federal spending is part I am introducing legislation to stimulate earn it to those who do not. As this re­ of the welfare state-redistribution proc­ the economy, create jobs and stabilize distribution process grows, so does the ess: fl n billions of dollars)

Defense Defense Health, HEW Federal percent of Defense percent of Education, HEW (Percen t outlays Defense outlays 1972 dollars of GNP and Welfare (Percent) GNP )

Year 1965: ______1960 ______68. 5 39. 9 58. 3 75. 9 92. 2 45. 2 10. 5 ------1965 ______49.0 73. 9 9. 1 ------1970 ______118. 4 48.6 41.1 71. 0 7. 4 29. 7 25. 1 4. 5 1975 ______196. 6 79. 3 40. 3 91.1 8. 3 64. 1 32. 6 6. 7 324. 6 86. 6 26. 7 67. 0 6. 0 151. 4 46. 6 10. 4 1978 __ ------464. 3 . 109. 9 23. 7 68. 7 5.4 220.3 47. 5 10.8

The trend is obvious. In 1955 national those who work and produce, but re­ public discussion of this trend. The leg­ defense constituted 58 percent of the wards those who do not. This discour­ islation accomplishes this by doing the Federal budget, but will account for only ages productivity and creates social strife following: 23 percent this next fiscal year. Not only and antagonism. As more and more of First. Reducing all spending by the has defense spending declined as a per­ an individual's income is taken and re­ Federal Government for fiscal 1978 by 5 centage of our Gross National Product, distributed to someone else, he is gradu­ percent, except for national defense and from 10.5 to 5.4, but also in absolute ally forced into joining some pressure security. This would reduce the fiscal terms. Adjusted to the value of 1972 dol­ group to lobby for a return of at least 1978 budget by approximately $17 billion. lars, we were actually spending more for some of his earnings. This political re­ Second. Reducing all spending for national defense in 1955 than we will in distribution process breeds antagonism compensation of Federal employees, in­ 1978. and conflict not only between the bene­ cluding Members of Congress and their Redistributive spending, on the other ficiaries and the victims, but also among staffs but not employees engaged in na­ hand, as measured by Federal outlays the beneficiaries themselves who are at tional defense or security, by 10 percent for welfare, education, and health, has odds about their "fair and proper" for fiscal 1978. Thus Federal salaries soared from $29.7 billion in 1965 to an shares. As the noted Prof. Hans Sennholz and/or the number of Federal employees estimated $220.3 billion next year, ap­ has pointed out, the redistributive so­ would have to be reduced. However, the proaching 50 percent of the Federal ciety is a conflict society that jeopard­ 5 percent reduction in Federal spending budget. These three categories are the izes its individual freedoms and economic would allow the Government to operate largest areas of redistribution, but there well being. with fewer employees and this reduction are others. What has made this possible was the could be quickly achieved by a temporary Virtually all the welfare state pro­ erosion of our constitutional form of ban on Federal hiring. grams are the result of the "New Deal" government. The Constitution was de­ As the Federal Government reduces its legislation of the 1950's and the "Great signed to strictly limit the power of the spending, its demand for loan funds Society" legislation of the 1960's, all of Federal Government and, predominantly, would decline immediately. The dollar which is the product of the liberal phi­ served this purpose until the 1930's when would be stabilized and interest rates losophy that government should control the Roosevelt-packed Supreme Court would decline substantially. A 2 percent people's lives, becoming not their pro­ began interpreting the Constitution so decline, which would be a realistic ex­ tector but their provider by taking from loosely that virtually any activity could pectation, would reduce the interest bur­ some and giving to others. These pro­ fall under the general welfare or inter­ den on the Federal debt by $14 billion. grams were continued by the recent Re­ state commerce clauses. Once the limits Altogether, this reform program would publican administrations and apparently on Federal authority were removed, poli­ save the American taxpayer about $33 will be expanded by President Carter. ticians quickly stepped in with vote­ billion during the next year. It would This rapid increase in welfare spend­ buying promises. stabilize the U.S. dollar and halt the ing is having very detrimental conse­ If we are to preserve our freedom and drift toward Government omnipotence quences, both economic and social. Di­ prosperity, we must reverse this ominous and social strife. rect taxes alone have not provided the trend toward total government. But this It is, however, only the beginning and necessary funds, so the Government has can only be done with the support of not ·the final solution. Once adopted it resorted to deficit spending. By the end the public. I believe the vast majority should be followed with another 5 per­ of this next fiscal year the Federal debt of the American people do not want to cent reduction in each succeeding year will be $792.5 billion, having increased lose their freedom and do not want in­ until the budget is balanced and until by $306 billion just since 1974. These def­ flation, recession and unemployment. But the unconstitutional transfer payment icits are financed either by borrowing they have not been informed that it is segment of the Federal Government is or inflating the currency. Borrowing de­ the growth of Government that is re­ eliminated. pletes the economy of the capital neces­ sponsible for these problems. As each Since the public is becoming aware sary to finance production and growth; new social welfare program achieves the that inflation is caused by deficit spend­ inflation erodes the value of savings and exact opposite of its stated intention, the ing, we find much campaign rhetoric income, hitting those on fixed incomes liberals and the news media blame free about balancing the budget. There!ore it the hardest. The overall effect is to trans­ enterprise and propose another Govern­ should be emphasized that this legisla­ fer resources away from production and ment program to "solve" the problems tion sets up a mechanism to actually into consumption, resulting in stagna­ created by the present Government achieve a balanced budget. tion, recession, and higher unemploy­ program. As Government spending is reduced, ment. The purpose, therefore, of my legisla­ inflation will first decline and then dis­ Socially, the consequences are as bad, tion is twofold: to reverse the trend to­ appear when the budget is balanced. Pro­ if not worse. The welfare state punishes ward total government and to stimulate ductivity will increase rapidly since the June 1, 1977 EXTENSIONS OF REMARKS 17227 Government will be transferring fewer magazines featuring children engaged in ture to the ultimate dispenser must know resources out of the economy, and un­ sexual acts. I viewed examples of this pornog­ that such abuses now occurring not only in employment will drop swiftly, raphy at establishments located at 7th Ave­ the City of New York but across the country nue and 42d Street here in New York City. wlll not be tolerated. In other words, the results of this pro­ Other cities in this country also have book­ gram if carried out will be a tranquil stores and theaters featuring material using society, with a stable dollar, a stable free children. Through the crusading of Judi­ enterprise economy, and a constitution­ anne Densen-gerber of Odyssey House and ally limited Government. others concerned With the welfare of children, HELSINKI TO BELGRADE both this Committee and the Congress has been made aware of the need to put a stop to the abuse of children in pornographic HON. EDWARD J. DERWINSKI ON THE NEED FOR LEGISLATION TO scenes. OF ILLINOIS STOP CHILD PORNOGRAPHY Members of this Committee have intro­ IN THE HOUSE OF REPRESENTATIVES duced legislation to amend both the federal criminal laws and the federal Child Abuse Wednesday, June 1, 1977 HON. EDWARD I. KOCH and Treatment Act to make it a crime for Mr. DERWINSKI. Mr. Speaker, prior any adult to produce, distribute or sell mate­ OF NEW YORK rial which employs or uses children under to the convening of the Belgrade Con­ IN THE HOUSE OF REPRESENTATIVES age 16 in a sexually explicit scene. I have ference, a very timely article, appearing Wednesday, June 1, 1977 also introduced H.R. 7468, which is similar in the May issue of the American Bulle­ to the bills introduced by Congressmen Mur­ tin, a publication of the Czechoslovak Mr. KOCH. Mr. Speaker, yesterday phy, Kildee, and Biaggi, but with a few dif­ National Council of America, concen­ it was my privilege to testify at hear­ ferences. Both those bills and my own out­ trates specifically on the situation of the ings of the Subcommittee on Select Edu­ law the use of children in a number of ex­ oppressed people of Czechoslovakia. How­ cation of the House Committee on Edu­ plicit sexual activities, which we all agree are ever, with adjustments of personalities, cation and Labor, held at the Covenant shocking for children to be exposed to. How­ in­ ever, in my bill I do not outlaw absolutely geography, and the degree of Soviet House in New York City, concerning leg­ "any other sexual activity" or "nudity," be­ terference, the same stories could be told islation to prohibit the use of children cause I am concerned about the breadth of for every country in Eastern Europe. I in pornographic films or magazines. I these terms. For instance, if Tom Sawyer insert this commentary into the RECORD was shocked to learn earlier this year kisses Becky in a movie based on Mark Twain, for the attention of the Members: that many young children have been that should not automatically be banned. FROM HELSINKI TO BELGRADE used as performers in explicitly sexual Thus my bill forbids certain explicit "sexual The Helsinki agreement was adopted in movies and photographs, which are then acts" and also "any other sexual activity or Helsinki on August 1, 1975. Americans of distributed and sold throughout the nudity, if depicted in a manner which ap­ Central and East European background de­ country. peals to the prurient interest and as part of a spaired at the time for they were convinced I believe that the Government has no work which, taken as a whole, lacks serious that the Soviet Union had no intention of literary, artistic, political, or scientiflc value observing Basket Three, the part dealing business telling consenting adults what and is patently offensive." Although this they should see, read, or do with respect with human rights. The Soviets had reason standard does require more proof, I believe to rejoice, for Basket One ratified their vast to sex, as long as it does not involve it helps perfect the bill's important objec­ territorial grabs and Basket Two opened up children or impact adversely on other tives without penalizing innocent behavior. new avenues for expansion of their commerce adults who do not wish to be involved. I would also like to make it clear that I be­ and economy. They gloated over Basket One, When children are involved, however, I lieve the state has no business telling con­ made full use of Basket Two, and ignored believe the Government, both State and senting adults what they should see, read or Basket Three. Federal, has a duty to protect children do with respect to sex, as long as it d:ies not The Soviet Union was somewhat surprised involve children or impact adversely on other at our insistence on Basket Three. If the So­ against their being used or abused in a:iult3 who do not wish to be involved. either hardcore or softcore pornographic viets and satellites cannot divert our atten­ When one comes to children, however, I be­ tion to Basket Two, to subjects of great in­ scenes. lieve the State has to protect children against terest to them, to energy, environment, eco­ Many Members of Congress have in­ use or abuse, whether in hard or soft core nomic cooperation etc., they will take the troduced or cosponsored legislation to pornographic situations. The use of children offensive and accuse us of being transgres­ amend the Federal criminal laws and for such purposes cannot be tolerated yet it sors against human rights. the Child Abuse and Treatment Act to has escalated With pornographic films and Soviet spokesmen and the Soviet press make it a crime for any adult to produce, peep shows which lewdly display children, make this very clear. Moscow has kept up a some in explicit sex acts with other children steady drum fire of articles about the alleged distribute, or sell material which em­ and in some cases, adults. On the streets of ploys children under 16 years old in a violations of human rights in the United New York one can buy today films and maga­ States and other Western countries," (Soviet sexually explicit scene. I have introduced zines with pictures that demean and use World Outlook, May 15, 1977, Washington, H.R. 7468, which also accomplishes these children, infants as well as teen agers, and D.C.). New Times (No. 17, April, 1977) insists purposes. their bodies. Many of the publications and that the human rights-information problem I commend the efforts of Congress­ films are produce:! out of state, but some are "is resolved in practice by each state within men JOHN M. MURPHY of New York and produced in New York State. It is the duty the context of its own sovereignty ... It is Congressman DALE KILDEE of Michigan, of the State and its law enforcement agen­ racism, colonialism, rightist extremism, fas­ who have been instrumental in drafting cies to prosecute and where convictions re­ cism, continuation of the arms race, that are sult to heavily punish the abuses of children. jeopardizing basic human rights." Tass ar­ legislation in this area and in obtaining I am pleased that the New York legislature hearings on the .subject. With their co­ gues (April 25) that "the Belgrade meeting is considering legislation to forbid the use of is a meeting at a working level, consultative operation and that of many other Mem­ children in any "sexual performance." Ac­ in character; any attempt to modify Helsin­ bers of Congress, I hope that we can cording to information provided me by the ki is doomed to failure." adopt legislation this year that effec­ Library of Congress, only six states now ex­ An attack will be made on Radio Free Eur­ tively ends this sordid problem of child plicitly forbid the use of minors in an ob­ ope and Radio Liberty which broadcasts be­ pornography. scene performance. The federal statutes are hind the Iron Curtain. "It is not a matter of I am appending a copy of the testi­ also inadequate, because they focus on the .freedom of exchange of ideas, because the mony I gave at yesterday's hearings: importation or distribution of "obscene" Final Act of Helsinki simply does not include material, rather than on the protection of this or any similar situation," writes Kom­ TESTIMONY OF HON. EDWARD l. KOCH children per se. muntst, (No. 5, March 1977). Moscow was Mr. Chairman, I am pleased to be here I consider the use and abuse of a child for very angry when President Carter recom­ this morning to state my concern that young sexual purposes to be equal in its impact on mended to Congress that appropriations for children are being used and abused in the the victim and society as a crime of violence, broadcasting be doubled. Moscow is ready, production of pornographic movies and and should have the same priority that we it would seem, to jam any new transmissions. photographs. It is a hopeful sign, that this accord to serious crimes of violence. The In Washington, the Commission on Se­ hearing into these shocking abuses of young sexual abuse of a child may injure that child curity and Cooperation in Europe, headed children is being held here at Covenant for the rest of his or her natural life and pre­ by Rep. Dante Fascell--consisting of six House-which is an institution providing vent him or her from maturing int:> a members of the House and 6 from the Sen­ refuge for teenagers and young adults. healthy wholesome human being. The por­ ate and 3 from the Administration-has Last winter I was dramatically introduced nographers at every end of the spectrum been preparing U.S. material for Belgrade. to some of the worst examples of movies and using children, from the producer of the pie- For weeks it has held hearings of exiles and CXXIII--1084-Part 14 17228 EXTENSIONS OF REMARKS June 1, 1977 informed Americans about the situation in and promulgated by Communist govern­ offenses, a treatment harsher than that in­ the captive nations. On March 15, the Com­ ments, including the government of Czecho­ fiicted on criminals; hardships and contin­ mission called Czech writer Jan Benes and slovakia. They no longer represent a mere ued persecution of released prisoners of Mrs. Anna Faltus, representing the Czecho­ declaration of intentions, nor are they only conscience. slovak National Council of America, to tes­ "a matter of proper concern"; being an in­ Art. 12: "No one shall be subjected to arbi­ tify about Czechoslovakia. They submitted tegral part of a multilateral treaty, they are trary interference with his privacy, family, proof about divided families, travel and binding in international law. home, or correspondence.'' immigration violations. On May 9, Jiri Thus it should be clear beyond any possible Every family in an apartment is under Hochman, former Rude Pravo correspondent doubt that the exemption of "matters of do­ surveillance by a house informer. Long dis­ in Western Europe, Moscow and Washington, mestic jurisdiction" from international scru­ tance telephone conversations are tapped and and former editor of Reporter, a liberal week­ t iny is no longer applicable, since obligations discontinued if anything but personal mat­ ly under Dubcek, (now living in the United concerning human rights have been spelled ters are discussed. Foreign mail is processed States), testified on the abuse of human out in binding international treaties. (especially from people who left illegally) by rights in Czechoslovakia. Here the only applicable principle is the a special department of the Ministry of In­ Finally, in response to the invitation of sanctity of treaties-pacta sunt servanda­ terior, which is equipped with computers the Commission, the Czechoslovak National the basic principle of all international inter­ a.!ld detection devices. Some letters are copied council of America submitted the follow­ course among civilized nations. and filed for future use by the State Security ing report, as compiled by Prof. Francis Chapter VII of the Final Act of Helsinki police. Schwarzenberg and Vlasta Vraz: is devoted to "Respect for human rights and Citizens corresponding with friends abroad The Czechoslovak National Council of fundamental freedoms, including the free­ were given the following questionnaire to America, as an organization devoted to the dom of thought, conscience, religion or be­ fill out (reported to a friend in Australia, cause of freedom in general, and more spe­ lief.'' The final paragraph refers to "the pur­ November 1976): cifically to a free Czechoslovakia, has been poses and principles of the Charter of the "I affirm that I have been duly informed asked by the Commission on Security and United Nations and the Universal Declara­ of my duty: a) to report any written or Cooperation in Europe to submit a report on tion of Human Rights." personal contact wtih my close relatives who Czechoslovakia. The question is: Has re­ Since these two documents are specifically left the Republic illegally and to inform Epect for human rights in Czechoslovakia mentioned in the Final Act of Helsinki, the proper authorities of any changes pertaining improved since the signing of the Helsinki pertinent articles of the U.N. Charter and the to their residence (change of address, etc.); agreement? Regretfully, the answer is cate­ Universal Declaration form an integral part b) to report all my written and personal gorically NO. of the Final Act of Helsinki. Therefore it is contacts with citizens of capitalistic states, This organization has over the past year more than proper for signatory states of the including Yugoslavia; first, to ask permission submitted a wealth of informat ion concern­ Helsinki agreement to scrutinize the present of proper authorities in case I wish to come ing concrete cases of violations of the clauses situation existing in the other signatory in contact with these citizens of capitalistic of the Helsinki agreement. Most of the cases states on the basis of all three above men­ states and furthermore, to report sub­ came under the heading of "Cooperation in tioned documents. sequently should there have occurred any humanitarian and other fields," commonly And thus we find that the government of unfcrseen personal contact with these citi­ known as the "Third Basket." Predominantly, Czechoslovakia falls short of its assumed zens, in which case the same ruling is they dealt with separated families, delayed obligations. A brief review of a number of applicable. I am required to report these and refused visas and exit permits, travel articles in these three documents should be for personal or professional reasons, con­ facts to my direct supervisor and at the sufficient to prove this point. proper Special Designation (Zvlastniho ditions for tourism on an individual or col­ PRINCIPLES OF THE U.N. CHARTER lective basis, circulation of, access to, and urceni). I am to be held fully responsible for exchange of oral and printed information The continued occupation of Czechoslo­ any violation of this ruling which is punish­ and related problems. vakia by the armed forces of the Soviet Union able by law." At this time it appears advisable to stress constitutes in itself a severe violation of the Art. 13: "Everyone has the right to leave the broader framework of continued repres­ Principles of the U.N. Charter. his country, including his own and return to sion, existing in an undiminished degree in HELSINKI AGREEMENT his country." Czechoslovakia, even after the signing, rat­ The Final Act establishes the right to opt It is common knr.wledge that Czechoslo­ ification and promulgation of the Helsinki for neutrality. This is what the citizens of vakia's borders are surrounded by a no-man's agreements and other international treaties, Czechoslovakia clamored for in 1968-neu­ land of mined fields, electrically charged such as the International Covenant on Civil trality-in the very brief period of the Spring wire-fences, manned by police etc. If citizens and Political Rights and the International thaw. Current government propaganda in denied an exit permit decide to flee across Covenant on Economic, Social and Cultural Prague is directed against those who would the border, they are fired upon; if captured, Rights, signed by the Czechoslovak govern­ advocate neutrality for Czechoslovakia. Such they are sentenced from six months to five ment. a desire is called "the most vulgar form of years prison, or to correction camps, or to loss Here the pertinent question may arise, to anti-commu!lism," "an attack on the Warsaw of property (Penal Law, par. 109, 1966). Any­ what extent the principles of the U.N. Char­ Pact alliance and the Soviet Union." People one caught helping others to escape is sen­ ter and of the Universal Declaration of Hu­ who under the guise of Helsinki advocate tenced from three to ten years prison or to man Rights constitute obligations in an area neutrality "do not really want peace and the loss of property. which has been traditionally considered to lessening of tensions" (History and the Mili­ Art. 15: "No one shall be arbitrarily de­ be the field of domestic jurisdiction. tary, Prague, 1976, No. 2, pp. 60-72). prived of his nationality nor denied the right Communist propaganda tries to confuse UNIVERSAL DECLARATION OF HUMAN RIGHTS to change his nationality." the issue by invoking exemption of matters Although almost every article is violated, Due to the ambiguity of the legal problems of domestic jurisdiction from international and the arbitrary decisions of the Czechoslo­ scrutiny. It quotes the principles of "so­ only the more blatant violations are men­ tioned here: vak government, it is impossible to explain cialist intei:national law" which differs from briefly the various violations of this article. international law as generally accepted by Art. 3: "Everyone has the right to life, lib~ civilized nations. erty and the security of person.'' Art. 17: "No one shall be arbitrarily de­ Art. 6: "Everyone has the right to recogni­ prived of his property." Before and after signing of the Final Act There is hardly any need to discuss this of Helsinki, the Soviet government, as well tion everywhere as a person before the law." Art. 7: "All are equal before the law; all article as private ownership in Czechoslo­ as the satellite governments, whenever chal­ are entit:ed to equal protection etc." vakia has been limited to such a degree as lenged on a humanitarian question, have to make it a mockery. invoked the "7th Principle of the U.N. Char­ Art. 8: "Everyone has the right to an effec­ tive remedy by the competent national tri­ Art. 18: "The right to freedom of thought, ter." Yet it should be clear that these ques­ bunal etc.'' tions are no longer purely matters of domes­ conscience, and religion." tic jurisdiction, but should be considered a Art. 9: "No one shall be subjected to arbi­ This basic right is completely disregarded p_roper concern for the community of nations trary arrest, detention or exile." in Czechoslovakia. The situation has not im­ smce they are mentioned repeatedly in the Art. 10: "Everyone is entitled to a fair and proved any after Helsinki, although the public hearing." accused often refer to the Helsinki agree­ U.N. Charter (Preamble: "faith in funda­ Art. 11: "Everyone has the right to be pre­ mental human rights, in the dignity and ment in their defense (see Charter 77). s-..imed innocent until proved guilty.'' Communist control of the Church (Catho­ ~orth of human persons"; Art. 1, par. 2: Amnesty International released in March lic, Protestant. Jewish, etc.), through a S)!S­ ..self-determination of peoples"; Art. 55: 1977 a 16-page report that analyzes the vio­ tem of law and penal codes, is absolute. The universal rights and fundamental freedoms lations of the above articles, namely: the Communist Government Bureau for Church for all without distinction as to race, sex, existence and application of laws which pre­ Affairs has such wide jurisdiction that it is language, or religion" etc.) Since 1945 and scribes imprisonment for the non-violent ex­ omnipotent: it has complete authority to 1948 respectively, the development has pro­ ercise of certain rights of conscience; the ap.,rove (choose) the clergy, control their gressed even further. inadequacy of legal safeguards and the abuse actions, sermons, finances, to penalize the These principles of the U.N. Charter and of legal provisions relating to house search clergy, divest them of their office. Communist of the Universal Declaration of Human (without warrant) and pre-trial detention; Secretaries for Religious Affairs possess t he Rights have been incorporated into the text the poor treatment and conditions of deten­ right to issue or take away the state's "ap­ of multilateral treaties, duly signed, ratified, tion for individuals convicted of political proval," i.e. the license for discharging June 1, 1977 EXTENSIONS OF REMARKS 17229 ministerial duties. They bar seminary grad­ jail since January, to be charged with nist Party control they have become instru­ uates from entering their chosen profession "crimes" against the state; former Ambas­ ments of the Party, whose interests they and instead, many of them have to perfo:m sador to the U.N., Dr. Jiri Hajek is under serve. Strikes, bargaining, demand for higher manual labor. The authorities approve---or house arrest; Prof. Jan Patocka, distin­ wages and other bene!its are unthinkable. do not approve-candidates for various of­ guished scholar, 1s dead following exhausting Art. 26: "Everyone bas the right to educa­ fices within the church hierarchy, including police interrogations. Many signers are tion." the bishops. threatend with loss of job. The Communist Top students with highest grades are The state is also in charge of church fi­ regime has succeeded in isolating the dis­ usually barred from higher schools of learn­ nances and pays ministerial salaries far be­ sidents by depriving them of their tele­ ing because of the bourgeois background of low the scale applicable to any other pro­ phones, automobiles, and livelihood. their parents, or grandparents, although they fession: 650 crowns a month to a pastor; American and other Western correspond­ a.re long dead and their property has been every three years this beggarly salary ls in­ ents have been refused visas to Czechoslo­ confiscated decades ago. Their religious be­ creased by 30 crowns. Professionals in uth~r vakia (see Eric Bourne's reports to the Chris­ lief, or that of their parents, also puts them fields receive from 2,000 to 4,000 crowns. tian Science Monitor, April 11 and 15, 1977). at a. great disadvantage. Almost from the The Party screens candidates for the sem­ Others-foreign correspondent Tad 5zulc, cradle, parents pray and plan how to protect inaries and has the final word who will be Dlsko Doder of the Washington Post, Reuters, the future of their children against discrim­ ordained. Their number is severely limited etc. were denied visas earlier; Paul Hofman ination. and decreasing year by year. (Five priests are of the New York Times was mistreated Poor students from Communist familie3 ordained to replace 20 priests who died dur­ (February 1977). have all the advantages; no school is closed ing the year) . Art. 20: "Everyone has the right to free­ to them, despite a low scholastic record. A report on conditions in Czechoslovakia dom of peaceful assembly." Art. 27: "Everyone bas the right to partici­ was presented at the International Euchar­ Right or Assembly is non-existent and even pate in the cultural life, etc." istic Congress in Philadelphia by the Mm;t small meetings of friends in private homes Even painting and music, let alone litera­ Reverend John L. Morkovsky, Bishop of are under police surveillance (Vaclav Havel, ture, must conform to ideologial ortho:ioxy. Galveston-Houston, Texas (Congressional author Ludvik Vaculik, playwright Pavel Everything must be created "in the interests Record, Sept. 2, 1976, E 4859-4'B69). Kohout, Dr. Jiri Hajek, etc.) Without a of the state" (meaning the Communist A similar report on "Religious Oppression" search warrant, police storm into their Party) and must reflect "socialistic realism" of Slovak Ev. Lutheran Church was prepared homes, ransack their apartments, confiscate and "class consciousness." Non-conformist by Dr. Martin Kvetko (Our Trends, March their manuscripts (described by Malcolm playwrights cannot be present on opening 1976). Persecution of churches has deepened W. Browne, New York Times, Jan. 16, 1977). night abroad (most recent example: Pavel to such an extent that informed observers 2) "No one may be compelled to belong Kohout); one writer was refused permission speak of the "quiet liquidation of spiritual to an association" to collect a literary prize which had been and religious life in the country." If a child hopes to acquire a. better educa­ awarde:i him. Painters and other creative Liquidation is the deliberate, insidious tion or position, he signs at an early age in artists are often not permitted to accept an plan of the Communist Party, as outlined Pioneer and later in the youth organization invitation to exhibit in the West and if their by Vasll Bejda in a secret protocol presented Svaz mladeze. To resist signing up in the work is exhibited, they are not allowed to by the ideological department to the inner various professional and other organizations, be present at the installation. If their works circle of the governing body of the Com­ all under Communist supervision, 1s an are sold, they are advised one or two years munist Party. (The protocol was smuggled empty brave gesture which closes doors to hter by the government bureau about the out of the country and reprinted in part in promotion and advancement. sales and are given less than half from the Listy, No. 1, February 1976, Rome). Vasil Art. 21: "Everyone bas the right to free Bejda is the right-hand man to the traitor proceeds of the sales or of the royalties. elections, the right to take part in the gov­ A group of non-conformist musicians was Vasil Bila.k, one of the most influential ernment, directly or through freely chosen among Moscow's stocges. arrested at a private wedding part and tried representatives." on charges of hooliganism. "The Plastic Bejda speaks of the importance of spread­ This article becomes a farcical travesty in ing "the Marxist world view through scien­ People," a rock music group, claim to be apo­ any Communist country and especially in a. litical but the Communist regime looks upon tific-atheistic propaganda." He complains country occupied by the Soviet army. There that there are "strong remnants of various their performance as "a political statement are no opposition parties or groups at elec­ which implies a rejection of the very basis of religious prejudice, some twenty sects in tions. Everybody has to vote for the candi­ Czechoslovakia," which must be elimina!;ed. the Husak regime." Twenty-two were ar­ dates alrea:ly chosen by the local or central re.sted; several were tried separately and were He quotes President Husak as saying that committee of the Communist Party. (For ap­ the only political opposition in Slovakia. is sentenced from eight to 30 months imprison­ pearance s!lke, some of the names are listed ment ("Czech rock stars face the music," The Catholicism. Four new bishops have been as representing other affiliated parties, but appointed illegally, which proves that t!'.le Chicago Tribune, August 30, 1976). this is window-dressing). Newly elected mem­ Art. 28: "Everyone bas duties to the com­ Communists practice freedom of religion. bers of parliament are told how to vote by However, the Church must obey the la.w. munity in which alone the free and full de­ the instructors of the central committee of velopment of his personality is possible." "As soon as the bishops should disobey, we the Party. shall take justice into our own hands." "Duties to the community" are interpreted Art. 23. "Everyone has the right to work, to as duties to the Communist Party, without In Czech lands, the situation is somewhat free choice of employment, to form and join different, says Bejda. Here the Protestants any regard to one's inclination or belief. e union." From the above, it is evident that condi­ are practicing "the ideology of parasites"; Transgressions aga.inst art. 23 were best they a.re advocating loafing. This "policy of tions concerning human rights have not im­ illustrated by the protest of historians "Acta proved since the signing at Helsinki. "Rude do nothing" is intended to "undermine our Persecutionis," F. document presented to the socialist state and the socialist participation XIVth International Congress of Historical Pravo," the government mouthpiece, declared openly as recently as March 17, 1977: "So­ of our people." Bejda concludes that "war Science::, held in San Francis::o, August 1975. against religious delusions is inevitable" and It includes 147 names of former historians, cialist states will never permit anybody to that it is "vitally important to spread scien­ who ha.ve all been ousted from their posi­ interfere in their internal affairs." Seem­ tific atheism ... The primitive ideology (of tions. The regime does not trust them that ingly, the government has succeeded in religious delusions) finds support, under­ they would interpret Czechoslovak history silencing and isolating the signers of the standing and action not only among cur from Moscow's standpoint. Most of them have Charter. Their harassment-unjustified as it grandmothers and grandfathers, but also been assigned menial jo::>s. is-nevertheless is less severe than it would among our youth." The situation has not impro;red since 1975; have been some time ago. The people in Art. 19: "Everyone has the right to free­ on the contrary, if any bad dared to sign the Czechosolvakia are convinced that this is dom of opinion and expression." Charter, they were undoubtedy evicted from due to the West's new interest in human On January l, 1977, a group of Czech in­ their job. rights. tellectuals presented a petition to their gov­ Not o:lly historians, but all other profes­ ernment, now known as Charter 77, signed sions are treate:l similarly. Priests, nuns, by almost 300 and eventually by 600 citizens teachers, former professors and lawyers, army LEAA AT THE CROSSROADS from all walks of life. It was an appeal to the officers, etc. are now janitors, garbage collec­ government to abide by the Helsinki Agree­ tors, truck drivers, warehouse men, laborers. ment and by Law No. 120 of the Czechoslovak Many journalists, writers and radio commen­ HON. ROBERT F. DRINAN Collection of Laws, issued Oct. 13, 1976, tators are harassed and as punishment for OF MASSACHUSETTS which includes the International Covenant continued disobedience have been ousted IN THE HOUSE OF REPRESENTATIVES on Civil and Political Rights and the Inter­ even from their manual jo~s. This pla:::es national Covenant on Economic, Social and them in the category of "parasites" of so­ Wednesday, June 1, 1977 Cultural Rights. ciety, which makes their situation all the The outcome of this petition is well known more dangerous. (Example: writer and radio Mr. DRINAN. Mr. Speaker, the Law to us in the free West. The police cracked commentator Vladimir Skutina, who has Enforcement Assistant Administration down on the "dissidents." Of the three twice served prison sentences.). has been the subject of much critical spokesmen, playwright Vaclav Ravels is in Unions exist in name only. Under Commu- comment over the past few years. In part 17230 EXTENSIONS OF REM.ARKS June 1, 1977 that criticism is based on a growing dis­ tablish a method of monitoring the results. near-drought conditions of recent months If not, states will be doing nothing more continue. These counties lie south of the illusionment with the benefits of the pro­ than shoveling money along the line, and areas formed by the Wisconsin glacier, which gram. Despite the spending of billions of their role will be that of useless middleman. means that the material above the bedrock dollars, LEAA-approved projects, it is Pat Murphy, president of the Police Foun­ is shallow, water runs off the land quickly, . said, have had little impact on crime and dation, said this week of the impending and most streams do not have a sustained the improvement of the criminal justice changes at the LEAA's highest level, "This flow. In the Department's view, neither sur­ systems. appointment is . vital because it can be a face water nor ground water is dependable Francis W. Sargent, former Governor brand new start for crime-fighting in this in southeastern Indiana. country." The Indiana Department of Natural Re­ of Massachusetts, recently addressed this Amen. And the sooner the better. sources identified several Ninth District issue in an article published in the Boston communities which need, or will soon need, Globe. Rather than advocating abolition additional water sources, including: Con­ of the agency, Governor Sargent suggests nersville, Corydon, Greensburg, North Ver­ improving the funding mechanisms pres­ THE NEXT RESOURCE CRISIS: non, Vernon, Osgood, Napoleon, Scottsburg, ently used by LEAA. The new Admin­ WATER Versailles, M1lan, Holton, and Westport. The istrator of LEAA should take seriously water sources of the several rural water sys­ the considered opinions of knowledgeable tems serving rural residents in the 9th Dis­ HON. LEE H. HAMILTON trict appear adequate, but increased usage persons, such as Governor Sargent. His could quickly change that outlook. monograph is inserted here for such con­ OF INDIANA Effective management of water resources sideration: IN THE HOUSE OF REPRESENTATIVES could probably solve most foreseeable prob­ REMEDIES FOR THE LEAA AILMENT Wednesday, June 1, 1977 lems. It would certainly conserve water. (By Francis W. Sargent) Americans, of course, waste water on a grand Some top cops were talking about crime Mr. HAMILTON. Mr. Speaker, I scale. New Yorkers, for example, use 270 gal­ this week, and the talk was optimistic for a would like to insert my Washington Re­ lons a day per person compared with 68 gal­ change, different from the gloom and doom port for June l, 1977, into the CONGRES­ lons a day for a resident of London. A recent I usually hear in my work as chairman of the SIONAL RECORD: GAO study shows that half of the water used for irrigation of crops is wasted. Police Foundation in Washington. THE NEXT RESOURCE CRISIS; WATER They were saying a new beginning is in Many methods are being used to increase Even as the country grapples with an oil the supply of water, including desaliniza­ the offing with the expected appointment of and gas shortage, there are growing signs a new a1ministrator of the Law Enforce­ tion, deeper wells, recycling, and even di­ ment Assistance Administration (LEAA), the that the next resource crisis involves water. verting rivers. Water can be harvested by agency tllat parcels out Federal money to This drought year is fixing attention on conserving water runoff in forest areas by fight crime across the country. America's most vital resource-water-and it managed tree growth, and better irrigation They think new boss means a new ap­ reminds us that the nation's water lifeline techniques can save vast quantities of wa­ proach to an agency its supervisor, Attorney ls slender. Water supply is largely taken for ter. It is estimated that 20 milllon acre feet General Griffin Bell, has called "a can of granted as a limitless resource, but increased of water are lost each year through seepage worms" and something "I can't get a handle population, the concentration of people in and evaporation in faulty irrigation systems. on." the cities, and the extravagant use of water Urban landscaping with native desert plants So far, LEAA has been nothing much more ls rapidly changing all of that. can be used instead of trees, grass, and than a money-shipper. Presidents Johnson The signs of growing concern about water shrubs, and improved storage facilities can and Nixon both declared a "War on Crime" are all around: in parts of Oalifornia water reduce evaporation from reservoirs. and tried throwing money at the problem, is rationed; Montana ts threatening to sue A new look must be taken at long-range as much as $800 million a year, in fact. the State of Washington if it seeds the clouds water problems. The nation should begin to LEAA did the throwing, and the fact is they and steals water that might have fallen on be prepared for droughts, rather than to be weren't too fussy where they threw it. What Montana; in Colorado ranchers kill off breed­ surprised by them. Food reserves should be a state proposed, LEAA funded. Believe it or ing stock because water-starved land cannot built in anticipation of droughts. Conserva­ not, in the history of LEAA, a state plan has sustain them; wells a.re running dry, forcing tion of water should be encouraged on a reg­ never been rejected, whether it called for farmers to dig deeper. So, water problems are ular bs;isis, rather than only during a crisis. tanks, teargas or drum and bulgle corps. substantial, and they will continue. Greater soil conservation measures are nec­ Few states thought in terms of the over-all The growing demand for water over the essary. A number of specialized technologies criminal-justice system, or correction reform, next 25 yea.rs will compel us to find or make need to be developed, including trickle irri­ or improvement of the causes and not just twice as much clean fresh water as the world gation, which minimizes waste, prospecting the effects of crime. already uses. 1200 billion gallons of water for underground water by satellite, rainwa­ Now, it looks like change is on the way. a day run through America's rivers and ter harvesting, and reducing loss of water Candidate Carter, by accident or design, streams. In 1970 one-third of that was used, from soils by chemical treatment. never promised a "War on Crime," never which was a 20% increase since 1965, but by Each day the world gets thirstier, and un­ talked about a secret plan to end such a war, the year 2000 this nation will use three­ less steps are taken now to reduce waste of hasn't oversold a program he might find he fourths of that fresh water. By that time only water and to improve water management, the can.'t deliver. 3 out of 19 water regions in the United States wells and streams and lakes could run dry So, not bound to the past or to a promise, (New England, the Ohio River Basin, and tomorrow. he and a revitalized LEAA can go a different the South Atlantic-Eastern Gulf Area) will way, different, that is, from the way of heavy be able to live comfortably with its water supply. rhetoric, massive spending-and dubious SALE OF CONTROL DATA CYBER 76 results. Ironically, the world has plenty of water. The pros I've talked to think the new way The problem is that very little of it is di­ ADVANCED COMPUTER TO THE ought to go like this: rectly useable by man. About 97.3% of all SOVIET UNION MUST BE STOPPED Washington should set clear goals, name water is ocean water and three-fourths of the kind of programs that will get Federal the remaining fresh water ls locked in help, set standards for states and cities to glaciers or is otherwise inaccessible. Much HON. STEVEN D. SYMMS meet and make violent crime top priority. less than 1 % of the world's water supply is OF IDAHO Washington should require states to show available for human use. Or, to put it an­ IN THE HOUSE OF REPRESENTATIVES how those Federal standards are going to be other way, if all the world's water were rep­ met. No vague state plan should be allowed. resented in a half-gallon carton, the amount .Wednesday, June 1, 1977 Chapter and verse of how the plan is going of fresh water available for human use would be one-half teaspoon. Mr. SYMMS. Mr. Speaker, recently I to work should be required. had reported to me some very astonish­ Washington should monitor what it is The demand on this limited supply is in­ financing. Progress must be noted, timetables creasing at ominous rates. Agriculture, which ing events regarding the proposed sale of set, impact measured, and what isn't work­ accounts for 80% of all the water used by a Control Data Cyber 76 computer to ing ought to be junked fast. people, and industry are using increasing the Soviet Union for weather prediction And that means, of course, that states will amounts of water. Even farmers shake their research. It is my understanding, from have to decide where their crime-fighting heads at the amount of water they use; it what I would consider to be a knowl­ energy is going. In Massachusetts, for ex­ takes 1000 tons of water to grow a ton of edgeable source, that in 1974 a private ample, Boston, with 11 percent of the popu­ grain; 136 gallons to produce a loaf of bread; guest of Soviet Ambassador Anatoly Do­ lation, has 24 percent of the crime rate. Com­ 900 gallons to produce cotton pajamas. brynin in the United States was identified mon sense indicates that major money ought Water supply is increasingly becoming a to go to Boston. concern for Hoosiers too. The United States by our intelligence people as one of the And states have to do for cities and towns Department of Interior has informed me top agents of the KGB. It is also my un­ what Washington has to do for states: set that water supply problems for Ninth Dis­ derstanding, Mr. Speaker, that at that standards, timetables and deadlines and es- trict counties could develop, especially if the time, U.S. counter-intelligence alerted June 1, 1977 EXTENSIONS OF REMARKS 17231 Dr. Henry Kissinger and others as to fore this sale proceeds any further. Fur­ One high official source, talking to Us in the true identity of Ambassador Dobryn­ thermore, it is known that the Cyber 76 confidence, related how a mysterious Soviet in's "guest" and revealed that this agent's system is especially suited for computa­ official showed up in the United States a few years ago. The Central Intelligence Agency real purpose for being in the United tion in nuclear weapon design problems immediately spotted him as a man with a States was to make arrangements for and in high energy physics research. It purpose. He had come here, the CIA warned, the purchase by the Soviet Union of ad­ is known that the Soviets have aggressive to seek strategic U.S. computers. vanced computers from Control Data R. & D. efforts underway in these areas The State Department, under Kissinger, Corp. that are military related. persuaded the CIA to soften its warning and In January of this year Control Data Again, it is stated that the Soviets want to pass off the visitor as merely the house reapplied for an export permit for the this machine, the Cyber 76, for weather guest of Soviet Ambassador Anatoli F. sale of their advanced Cyber 76 computer prediction research programs. But, the Dobrynin. to Russia for the purpose of performing This helped lead to computer sales not question comes to mind as to why such a only to Russia but also to China and Hun­ research related to global weather predic­ high-speed machine is needed for gary. In return for these sophisticated com­ tion. Although it is claimed that the use weather prediction work. What is it puters, according to an International Trade of this machine in the Soviet Union will about this machine that cannot be ful­ Commission report, the Soviets have offered be monitored by Control Data personnel filled by the IBM 360? the U.S. "horses, asses and mules" at favored and/ or others, I am strongly opposed to In conclusion, I intend to raise these prices. Russia.'s famous vodka will also be this proposed technology transfer. It is questions to the President and his na­ sold to the United States at a tariff of $1.25 a very difficult to prevent deversion of com­ tional security advisor and to other ap­ gallon, instead of the present $5. puter technology to military applications. Frustrated U.S. officials complain that the propriate levels of responsibility. I hope Soviets are getting the best of the deal. They I do not know if the Cyber 76 sale to have many of my colleagues in Con­ have gained strategic advances frotn the com­ proposed this year has any connection gress join in this effort. puters that have already been delivered, with the 1974 incident involving Ambas­ Mr. Speaker, I was pleased to see that theEe officials assert. But the Cyber 76 would sador Dobrynin's guest-which, by the columnist Jack Anderson devoted his give them a technological boost that no way, was kept quiet by the U.S. Govern­ May 24, 1977, column in the Washington amount of vodka could justify, they say. ment so as not to upset detente I am Post to this issue. I was also pleased that The secret study declares categorically that told-but there are several points that he gave an accounting of the inddents the wonder machine both could and would should be brought out regarding the stra­ surrounding Ambassador Dobrynin's be misused by the Kremlin for military pur­ tegic military implication of high speed/ poses. Those officials who favor the sale con­ "guest" that corroborated a statement tend, however, that the Soviets will use the high capacity computer capability on the that I made to the same effect on the Cyber 76 to increase their participation in a part of the Soviet Union: :floor of the House on Monday, May 23, world meteorological network. The result, Specifically, the Cyber 7600 series com­ 1977. they say, would be better international puter could significantly increase Soviet The Jack Anderson column reads as weather data, larger c1·ops and fewer unex­ air defense capability and could give follows: pected natural disasters. them significant antiballistic missile­ A SUPER-COMPUTER FOR THE SOVIETS A spokesman for Control Data assured our reporter John Schuber that the computer ABM-capability when combined with (By Jack Anderson and Les Whitten) phased array radars and high-accelera­ can be set up in Moscow in a way to prevent Control Data is preparing to sell the So­ any misuse. Any diversion to mmtary use, he tion interceptors now in development. viets a. $13 million electronic brain, which said, could be detected immediately. Then Also, with an effective civil defense pro­ could be turned against us to track U.S. mis­ Control Data would pull out its technicians gram-which the Soviets may have-the siles, planes and submarines. It is also ca­ and refuse parts to the Soviets, thus crip­ ABM problem is dramatically simplified pable of decoding sensitive U.S. intelligence pling the electronic monster. so that a single central computer such as transmissions. But other computer experts told our re­ the Cyber 76 could support a high-lever­ The miracle machine is the Cyber 76, which porter, Tony Capaccio, that Control Data's age ABM defense of several major Soviet will soon be on its way to the Soviet Union arguments are spurious. One former Control unless there is a last-minute stop order. It Data executive, referring to the alleged safe­ cities. not only will be the largest computer ever With regard to air defense, U.S. guards, said derisively: "That's a joke." Other delivered behind the Iron Curtain, but it is experts agreed that the Soviets could train bomber penetration capability is predi­ more than a decade ahead of the Soviets' their own technicians, and eventually locate cated on the assumption that the Soviet own computer technology. It operates at least parts from other countries. 20 times faster than anything the Soviets SAM's-surface-to-air missiles-cannot Footnote: At the Commerce Department, engage targets outside the field of vision produce. A top-secret, interagency study warns spokesmen confirmed that the secret study of the SAM site radar. Increased com­ tersely that the Soviets can convert the Cyber disclosed "some problems" relating to safe­ puter capability could allow intercepts to 76 to mil1tary use. Not only can it be used for guards against the misuse of the Cyber 76. be made at a point outside the field of tracking and decoding, but it could also im­ But the draft report, said the spokesman vision of a particular missile site radar, prove the production of nuclear warheads, wasn't final. thereby allowing the Soviets to use mis­ multiple-headed missiles, aircraft and other sile systems such as the SA-2 which are military hardware. There is n:) sure safeguard to prevent this, YOUTH EMPLOYMENT not now effective against low-:fiying the study declares. An intelligence source put bombers. One estimation given me is that it more bluntly. "For a few bucks," he told the Cyber 76 could potentially increase us, "we·re willing to give the Soviets the HON. CARDISS COLLINS by 100 fold the Soviet air defense capa­ means to destroy us. We're becoming our OF ILLINOIS own executioners." bility. IN THE HOUSE OF REPRESENTATIVES The issue appears to be what margin of Government officials, citing the strict secrecy, refused to show us a copy of the Wednesday, June 1, 1977 capability does the Cyber 76 provide that study. But sources with access t:> the original is not provided by the IBM 360's that the draft have told us of its warnings. They fear Mrs. COLLINS of Illinois. Mr. Speaker, Soviets now possess. Cyber 76 is 16 to 64 it may be softened in order to make the com­ the unemployment of an increasing pro­ times faster than the IBM 360 and has puter deal more palatable. portion of our young people is one of the twice the word length, which doubles its Control Dah executives, in repeated meet­ most serious results of the recent reces­ precision in tracking. The Cyber 76 is ings with U.S. officials, have insisted that the sion. Youths between the ages of 16 and Cyber 76 will be used by the Soviets strictly basically the same as the CDC 7600 com­ to study the weather. The company kept 24 currently account for more than 46 puter used at Kwajalein for the U.S. bal­ hammering at Washington to get an export percent of the jobless workers in the Na­ listic missile defense program. In short, license. Final Commerce Department ap­ tion. If the unemployment rate among the IBM 360 is basically a "business" ma­ proval of the deal, according to our sources, white youths of between 16 and 19 years chine while the Cyber 76 is an advanced was imminent until our inquires caused some of age is serious enough at 18.6 percent to high-speed scientific computer. hesitation. merit national attention, then the situ­ In view of the potential of the Cyber 76 The sale of computers to Russia was ation is more crucial for black youths of to improve Soviet air defense effective­ pushed originally by ex-Secretary of State the same age exhibiting an unemploy­ ness and possibly to provide some ABM Henry A. Kissinger. Eager to promote detente, he overruled military objections to earlier ment rate of 37.7 percent. As the Repre­ cap1bility in advanced air defense sys­ computer sales. Now that the Soviets have sentative of an inner city district in Chi­ tems, it is crucial that a competent and already received lesser computers, they will cago, I have more than a passing famil­ thorough analysis of this issue be made, be enraged if the Cyber 76 is withheld from iarity with the particular problem. preferably by an independent agency, be- them, say our sources. What is to become of our young people, 17232 EXTENSIONS OF REMARKS June 1, 1977 who, at the threshold of adulthood, are CHASTISING SINGLAUB WAS HYPROCRITICAL the treatment accorded them. Slnglaub, hu­ denied the opportunity to assume the re­ (By Patrick J. Buchanan) miliated and fired, risked his life during three wars in furtherance of this nation's military sponsibilities incumbent upon all of us as As commander-in-chief, President Carter was within his authority in firing Maj. Gen. and foreign policy. And Young, meanwhile, free citizens? How can we ask them to earned his battle stars integrating lunch accept, if not defend, the economic and John Singlaub from command of American counters and being hosed down by Dixie fire political system that we have developed forces in Korea. The general's publicized departments while singing "We Shall Over­ statement, "If we withdraw our ground forces and are continuing to improve upon, if (from Korea) on the schedule suggested, it come." we leave them without a productive role will lead to war," clearly contradicted settled to fill within it? Our responsibilities in U.S. policy. this matter begin with the task of mak­ Yet the general merits his countrymen's SYMPOSIUM ON GOVERNMENTAL ing certain that everyone who is capable admiration and respect. In risking his career FINANCIAL MANAGEMENT of working is able to find a productive to warn the nation of the consequences of job. Our further obligation is to see that what he believes is dangerous public policy, HON. GLADYS NOON SPELLMAN work that needs doing is not left undone. he has exhibited a moral courage to match The challenge, one that seems to have the physical bravery that has marked a long OF MARYLAND mllitary career. IN THE HOUSE OF REPRESENTATIVES eluded us so far, ts to match the un­ In 1944, as a young lieutenant, John Sing­ skilled jobseeker with the job that will laub was dropped behind the German lines to Wednesday, June 1, 1977 train him or her in a productive skill. train French partisans. Transferred to the Far East, he led Chinese guerrillas in raids on Mrs. SPELLMAN. Mr. Speaker, I In attempting this, it is important not would like to call the attention of my to raise false hopes, in the form of tem­ Japanese positions along the India-China frontier. During the final days of World War colleagues to a symposium on govern­ porary expedients that will, like a revolv­ II he was parachuted onto Hainan Island in a mental financial management that ing door, deposit our youth back on the daring and successful raid to rescue 400 allied promises to be an outstanding forum for streets, jobless and unskilled, after a sea­ prisoners of war. professional presentations and discus­ sonal stint on the assembly line. We need He served in Korea; and during Vietnam he sions here in the Nation's Capital. jobs that Will attack the roots of struc­ led an American unit operating behind en­ The symposium which is being spon­ tural unemployment, programs aimed at emy lines in Laos. General Westmoreland sored by the Association of Government youths from poor families in areas of the specifically praised his heroism. His combat decorations include the Croix de Guerre, the Accountants at the Sheraton Park Ho­ country where unemployment is a chron­ Purple Heart, the Bronze Star, the Silver tel, Washington, D.C., on June 27, 28, ic problem. The work we provide must Star. . and 29, 1977, is built around the theme train our young people in skills for which By expressing concern over the conse­ "Serving Government More Effectively." there will be a steady and growing de­ quences of a U.S. withdrawal, Singlaub was The association's 9,000 members in 75 mand in the future. only saying publicly what a majority of chapters throughout the world look for­ There are those who claim that Gov­ American omcers are saying privately. He was acting in the tradition of Billy Mitchell and ward to this annual event as the medium ernment-mandated jobs are make-work Douglas MacArthur, risking his career, rather to improve the state of their art and thus jobs, and that such jobs do not really than leaving his countrymen ignorant of the provide better professional service to train the unskilled or accomplish any­ potential dangers of present policy. Federal, State, and local governments. thing of significance for society. Let me Those delighted that Singlaub was dis­ The distinguished symposium speakers assure my colleagues that in supporting missed might ask themselves how the general on the program represent a wide spec­ the recent passage of the Youth Employ­ should have behaved, confronted with that trum of affiliations, positions, and disci­ ment and Training Act of 1977-H.R. question by The Washington Post. Should he have lied and denied any concern? Should he plines including: 6138-I have considered all of these fac­ have hidden behind the guise of an "in­ Hon. Bert Lance, Director, Office of tors and determined that the jobs pro­ formed source"? Or should he have spoken Management and Budget. posed in H.R. 6138 have nothing of the his mind and accepted the consequences? Hon. Richard M. Harden, Special As­ character of temporary or make-work In recent years many of the editorialists sistant to the President. jobs, but addressed essential nee~ in our most pleased at Singlaub's departure have Hon. Elmer B. Staats, Comptroller society that might otherwise remain deplored the absence of public omcials will­ General of the United States. unmet. ing to stand up and sp~ak out in dissent against administration policy. Had the gen­ Hon. Jule M. Sugarman, Vice Chair­ There is indeed, no limit to the unfin­ eral denounced the South Korean Govern­ man-nominee, U.S. Civil Service Com­ ished business of restoring our environ­ ment as repressive and unworthy of our sup­ mission. ment and rehabiiltating our public fa­ port, many of those hailing his departure Hon. JACK BROOKS, Congressman from cilities. These are precisely the areas would be singing hosannas to this "enlight­ Texas. that H.R. 6138, through the establish­ ened and courageous" soldier. Hon. Robert D. Ray, Governor of Iowa. ment of a young adult conservation What makes this writer particularly un­ Hon. Kenneth A. Gibson, mayor of corps and community demonstration impressed with Mr. Carter's public humilia­ tion of the general ts the spinelessness the Newark, N.J. projects, promises to develop in training President has exhibited in indulging the con­ Ms. Julia M. Walsh, vice chairman of participants in reforestation. wildlife tinuing idiocies and insubordinations of the board, Ferris Co. preservation and soil enrichment along United Nations Ambassador Andrew Young. Mr. Frederick Neuman, director, De­ with urban development. These new pro­ Within 24 hours of Singlaub's public dis­ fense Contract Audit Agency. grams will impart skills that will remain sent, Andy was in Mozambique informing the Mr. Ellsworth H. Morse, Jr., Assistant relevant to our needs so long as we con­ collective thuggery that rules Black Africa Comptroller General of the United tinued to cherish our urban and rural that they had been "betrayed" by the United States. environments. States. No word of protest from the White House, no order for Young to get on the next Mr. Harvey Kapnick, chairman and For these reasons, I applaud my col­ plane home. Indeed, that night Andy was chief executive, Arthur Andersen & Co. leagues for supporting the passage of photographed by The Associated Press jitter­ Mr. David Mossa, Fiscal Assistant Sec­ H.R. 6138 which, although a modest pro­ bugging with one of the local belles in down­ retary, Department of the Treasury. posal, is a step in a necessary and right town Maputo. Mr. Theodore C. Barreaux, vice presi­ direction. l resident Carter says his U.N. ambassador dent, American Institute of Certified is fast becoming a "hero to the third world." Public Accountants, Washington Office. CHASTISING SINGLAUB I do not doubt it, for the road to stardom in the Third World is to dump incessantly upon Mr. John J. Doyle, Jr., Peat, Marwick, the United States, which is the specialty of Mitchell & Co. HON. BOB WILSON our U.N. ambassador. Mr. Alan J. Reynolds, Director of OF CALIFORNIA If, for a single indiscretion, the President Audit and Investigation, Department of finds it easy to ruin the career of a distin­ Interior. IN THE HOUSE OF REPRESENTATIVES guished military officer, why does he find it In addition, the symposium will f ea­ Wednesday, June 1, 1977 impossible to bridle the braying donkey of American diplomacy? Was Singlaub's honest ture 47 technical workshops involving Mr. BOB WILSON. Mr. Speaker, under comment more damaging to U.S. policy than 155 expert discussion leaders on every leave to extend my remarks in the REC­ the uninterrupted jackassery of Young? significant subject affecting governmen­ ORD, I include the following: Contrast the record of the two men, and tal financial management. These work- June 1, 1977 EXTENSIONS OF REMARKS 17233 shops are recognized as important train­ Mr. Speaker, I endorse the human placed on business in any situation In which ing media by the U.S. Civil Service Com­ rights initiative which has been under­ the agency chose to intervene. These in­ mission and various State boards of ac­ taken by President Carter, and I hope evitably translate Into higher costs for con­ countancy for continuing professional that the State Department will continue sumer goods and services. education. So who will gain extra protection from the to do all it can on behalf of these people. new consumer protection agency? No one A national awards banquet will con­ The treatment of Jews in the Soviet that we know of. clude the symposium on the night of Union remains a blot on the history of Who will be hurt by it? Every taxpayer June 29, 1977, where recognition will be that nation-one which, on this coming and consumer In the country. given to those members of the associa­ day of solidarity with Soviet Jewry, we tion who have distinguished themselves should all pause to remember. by outstanding service or accomplish­ ments. IMPROVING OUR POSTAL SYSTEM Mr. Speaker, I cannot recommend this symposium too highly for those of our DO CONSUMERS REALLY NEED colleagues and their constituents who ANOTHER FEDERAL AGENCY? HON. DAVID W. EVANS are interested in improved financial OF INDIANA management at all levels of government. IN THE HOUSE OF REPRESENTATIVES HON. JACK EDWARDS Wednesday, June 1, 1977 OF ALABAMA IN THE HOUSE OF REPRESENTATIVES Mr. EVANS of Indiana. Mr. Speaker, WORLD DAY FOR SOLIDARITY as with the other Members of this Cham­ WITH SOVIET JEWRY Wednesday, June 1, 1977 ber, I hope that this Congress will give Mr. EDWARDS of Alabama. Mr. serious attention to modernizing our Speaker, I would like to bring to your postal system to make it more effective HON. JAMES J. BLANCHARD attention an article which appeared in and efficient in meeting today's increas­ OF MICHIGAN the Mobile Press recently concerning the ing needs and demands. IN THE HOUSE OF REPRESENTATIVES proposed Consumer Advocacy Agency. It It is clear that we need postal reform, is absurd to think that we can create a yet for too many years Congress has Wednesday, June 1, 1977 new Government agency with this broad neglected this important service and has Mr. B:SANCHARD. Mr. Speaker, next responsibility and exp~ct at the same only offered band-aid solutions to some Thursday, June 12, will mark the ob­ time to be able to reduce the cost of Gov­ very complicated and perplexing Postal servance of World Day for Solidarity ernment and the mass of bureaucratic Service problems. The idea of establish­ with Soviet Jewry. redtape already entangling the Govern­ ing a Commission on Postal Service to I would like to bring this occasion to ment. I think the following article ex­ study the system and make recommenda­ the attention of my colleagues. I believe presses the problem well: tions on improving it was honorable, but it is especially important to be aware of Do CONSUMERS REALLY NEED ANOTHER I must say their report and its proposed the plight of Jews in the Soviet Union at FEDERAL AGENCY? recommendations greatly concern me this time, since next month the signa­ Legislation, supported by President Carter, and the people of the Sixth Congres­ tories to the Helsinki Accord will meet is pending in Congress to cre:tte an independ­ sional District. in Belgrade, Yugoslavia, to review the ent agency with authority to intervene in I am appalled at the possible cutting results of the accord since its signing. the affairs of other federal agencies on be­ of delivery service from 6 to 5 days and I think it is vital for Members of half of consumers and consumer interests. the potential for closing many of our This measure sounds good on the surface small and rural post offices. It was a Congress to be aware that today, despite but, in our studied opinion, it is fiawed. the Helsinki Accords' guarantee of free­ R. Heath Larry, chairman of the National pleasure to hear that the Postmaster dom of religion and despite their re­ Association of ManUfacturers, puts the pro­ General has stated his intention not to affirmation of the right to emigrate posed legislation in its proper light: cut delivery service. The ramifications of freely, Jews in the Soviet Union are "With all due respect to the President's such action would be negative and cer­ harassed regularly and continue to be proposal for a new consumer protection tainly would not be conducive to better­ denied permission to emigrate to :Jsrael agency it must be said that the one thing ing our mail service nor would it help to or the United States. ·· · the American consumer needs most is pro­ reinforce our citizen's trust and con­ In May 1976, the Public Group to Pro­ tection from government over-regulation .... fidence in it. "Consumers, as taxpayers. are now paying mote the Observance of the Helsinki $4 billion a year to support the many federal Not only would our residential cus­ Agreements was formed by leaders of agencies riding herd on business. Business tomers be inconvenienced by delays in the Soviet Jewish community. Of 11 itself, in turn, is spending untold billions delivery, but also our rural areas and persons identified as leaders of the more to comply with the thousands of gov­ its residences would lose a certain iden­ group, one has since emigrated. One has ernment regulations which come under the tity and would be seriously inconven­ been exiled to Siberia, and three have heading of 'consumer protection.' These costs ienced in receiving and sending mail. been arrested. In the Soviet Union to­ eventually must be paid by the consumers Many of our businesses, both large and da v, seeking to promote human rights is themselves. small, depend on Saturday deliveries to "Congress will be doing a great service for still an offense which can bring about America by rejecting this latest effort to add continue their commerce and to provide punishment by the state. to regulatory overkill." the services and benefits to their cus­ From time to time, in accordance with The idea is credited by many to consumer tomers. Elimination of Saturday delivery the language endorsed by the U.S.S.R. activist Ralph Nader, who sometimes goes could have serious economic ramifica­ in the Helsinki Agreement and in the into orbit in his attacks on business and tions for many of them. In addition, it 1948 Universal Declaration of Human industry. has been estimated that approximately Rights-that "everyone has a right to 'nle pending measure h.!is its share of op­ 23,000 jobs within the postal system leave any country, including his own, ponents. however. 'nle main argument would be lost as a result. The fact is that and to return to his country"-! have against it is that it would only add another stifiing layer of red tape on top of the multi­ the elimination of Saturday delivery written to the Soviet Union and to our tude of present layers, with consumers foot­ would save less than 1 cent on the cost own State Department on behalf of Jews ing the bill. of first-class stamps and any substantive seeking to emigrate from Russia. In addition, there are already enough fed­ cost-savings would not be realized for at A recent response which I have re­ eral laws to protect consumers against least 2 years. For all the problems such ceived from the State Department almost everything except themselves. action would cause, the price surely does graphically illustrates the problem. It If Congress passes this proposed legisla­ not seem worth it. says, in part, that Secretary Vance "ex­ tion it will transfer its historic responsibility Our Postal Service is an intricate part pressed our interest in the resolution of to exercise oversight of its regulatory bodies and other federal agencies ro a single federal not only of our lifestyles but also of a large number of cases of Soviet Jews administrator. our economic growth and prosperity. I do ref used exit visas for Israel. A list of And the cost of operating the new agency, not believe we can afford as a country several hundred names • • • was sub­ as expensive as it would be, would be dwarfed to ignore this system or allow it to mitted to the Soviet Government." by the expensive burden which would be shrink its services nor shirk its respon- 17234 EXTENSIONS OF REMARKS June 1, 1977 sibility to the American people. Whether elderly people. We must move in the di­ of independent oil operators, competitive we like it or not, the postal system is cur­ rection of a voluntary system by remov­ pressure on domestic oil prices would en­ rently a Government service. As such, we ing this callous burden from our elderly. sue. Thus, a competitive energy sector in Congress should be striving for com­ could be achieved without confiscatory prehensive legislation to make it an measures of a government bureaucracy effective service to our constituents at a over production. reasonable cost. AMENDMENT TO THE DEPARTMENT The amendment also suggests a new OF ENERGY ORGANIZATION ACT leasing procedure. In section 302 of the bill, the Secretary of Energy is directed to implement new procedures that would LEGISLATION TO ELIMINATE BLOOD HON. JOHN CONYERS, JR. foster competition, establish diligence REPLACEMENT FEE OF MICHIGAN requirements, and implement alternative IN THE HOUSE OF REPRESENTATIVES bidding procedures for Federal prop­ Wednesday, June 1, 1977 erties. Such a procedure would be -that HON. DON EDWARDS proposed in our amendment; the Gov­ OF CALIFORNIA Mr. CONYERS. Mr. Speaker, it is my ernment would pay firms that presented IN THE HOUSE OF REPRESENTATIVES intention to introduce three amendments to the Department of Energy Organiza­ sealed, competitive bids with contracts to Wednesday, June 1, 1977 produce from Federal lands. The prod­ tion Act, H.R. 6804, when it is UI).der con­ ucts would then be auctioned together Mr. EDWARDS of California. Mr. sideration by the full House. The amend­ with imported products here in the Speaker, I am today introducing legisla­ ments are as follows: United States. Leasing procedures tradi­ t.ion to eliminate the "blood replacement A first amendment would eliminate tionally employed, in which firms pay to fee" currently in effect under our medi­ the Economic Regulatory Administra­ work Federal reserves and then sell those care program. This burdensome require­ tion in section 205 of the bill. products that they have extracted, have ment no longer serves any useful pur­ A second amendment would eliminate been subject to a wide series of abuses, pose for the Nation. My bill will relieve the Federal Energy Regulatory Commis­ ranging from underreporting of reserves medicare recipients and the medicare sion in title IV, and replace it with a Na.;. for the purpose of deceiving the Govern­ program of this onerous and useless tional Energy Board. ment over the royalty payment, to the burden. These amendments would, in combined creation of bidding consortiums that When medicare was first enacted we effect. eliminate the regulatory apparatus prompted antitrust recommendations were under the belief that financial coer­ within the Department of Energy, and within the Department of Justice. These cion to replace blood was necessary to create a new and independent regula­ abuses would be eliminated, along with insure an adequate supply. Therefore, tory board, the National Energy Board, the possibility of nonproducing wells we held the medicare recipient "respon­ which would be comprised of seven such as those that occurred last winter, sible" for replacing the :ftrst 3 pints members selected to incorporate the full by our procedure, in which firms bid for of blood transfused, either through dona­ diversity of views on energy prices. the right to manage the Government's tion of blood or by paying a replacement A third amendment would create, reserves and do so with strict specifica­ fee. The Federal Treasury pays the "re­ within the Department of Energy, a Pub­ tions as to production scheduling. placement fee" beyond the first 3 pints. lic Energy Administration, which would, My goals in preparing these amend­ Figures from HEW indicate that in when directed specifically by the Presi­ ments have been to minimize the crea­ 1971 and 1972, 64 percent of the elderly dent, become the sole legal importer of tion of a Federal bureaucracy yet at the were unable to replace transfused blood foreign petroleum and refined products, same time to define a planning role for and had to come up with the replace­ and further, would implement a new Government that allows for profitable ment fee penalty out of their limited, leasing procedure in which the govern­ activity by the private sector. These fixed incomes. In 1972, 1.2 million units ment would retain control over products amendments have found that middle provided to medicare recipients were not extracted from Federal lands. ground. replaced. The elderly had to pay some This third amendment is a proposal The text of the amendments follow: $13 million and the Government paid that would create new competition in AMENDMENT TO H.R. 6804, AS REPORTED, $25 million from the Federal Treasury both international and domestic petro­ OFFERED BY MR. CONYERS for blood processing fees for medicare leum markets. At present, negotiations On page 69, strike out line 6 and all that patients. with OPEC are carried out by an elite of follows down through line 4 on page 70, Are these enormous costs really neces­ global energy :ftrms, clustered around the and redesignate the following sectlpns in sary to insure an adequate supply of Seven Sisters of Oil. These multina­ Title II accordingly. blood? It appears not. Where an effort tional corporations have, in the words Staff are authorized and directed to make has been made to secure volunteer blood, of Dr. Schlesinger, "mixed motives" with technical and conforming changes as are as in my own Santa Clara County, ade­ necessary to incorporate the above amend­ respect to the price of international crude ment into the bill. quate supplies are available. The Red oil, and in the eyes of more severe critics, Cross has never used the nonreplace­ little motive to minimize the price of oil. AMENDMENT TO H.R. 6804, AS REPORTED, ment penalty and collects some 5 million Not only do higher in terna tion al oil OFFERED BY MR. CONYERS pints a year. Our Nation's blood policy prices protect these firms' massive in­ on page 84, strike out line 17 and all that calls for a volunteer program and ques­ vestments in shale oil, and new coal and follows down through line .14 on page 90 tions the propriety of the penalty fee. natural gas technology, but now that the and insert in lieu thereof the following new This bill is one step toward a volunteer Carter program ties the price of new oil title: blood program. and gas to the international OPEC price, TITLE IV-NATIONAL ENERGY BOARD Irregularities in many nonvolunteer higher prices in the international market SEC. 401. (a.) (1) There is hereby establlshed blood programs are focusing attention an independent regulatory board to be known on this problem. I have recently learned translate directly into higher profits for these corporations. lt is essential that as the National Energy Board (hereinafter that three Federal agencies are currently we change this institutional setting in referred to in this title as the "Board"). taking a look at possible abuses that.may ( 2) There are hereby transferred to, and be occurring in the program. I am also which foreign petroleum is purchased. vested in the Board (A) all functions and informed that the California Department A Government importer would be able to authority of the Federal Power Commission of Consumer Affairs has today ftJed suit pursue the most competitive price, free under the Federal Power Act and the Nat­ against a blood bank which utilizes re­ of the conflicting objectives a corpo- . ural Gas Act which are not speciflcally trans­ placement fees in that State. rate negotiator would bring to bear. ferred to, and vested in, the Secretary pur­ Furthermore, the auctioning of im­ suant to section 301 (b) of this Act, (B) all Many developed nations have all-vol­ functions transferred to the Secretary by unteer programs. There is every reason ported petroleum within the United section 30l(b) of this Act whtch relate to to believe that we have sanctioned States would give independent refiners establishment of rates and charges under through this medicare provision, a mech­ and distributors the opportunity to have the Federal Power Act and the Natural Gas anism which is ineffective in its stated the same access to crude products as do Act, (C) all functions which mav be dele­ purpose, and financially burdensome to the majors. By creating a strong group gated by the President under the Emergency June 1, 1977 EXTENSIONS OF REMARKS 17235 Petroleum Allocation Act of 1973, (D) all and Budget, it shall concurrently transmit by adding at the end thereof the following functions of the Energy Research and De­ a copy thereof to the appropriate commit· new subsection: velopment Administration with respect to tees of Congress. "(h) (1) The National Energy Board, upon uranium enrichment prices under the En­ ( e) A decision of the Board shall be a consultation with the Secretary, is au­ ergy Reorganization Act, and (E) all other final aiJency action within the meaning of thorized to promulgate a rule which shall functions transferred by title III of this Act section 704 of title 5, United States Code, be deemed a part of the regulation issued which involve an agency determination re­ with respect to matters withm the Board's under subsection (a) and which shall pro­ q,uired by law to be made on the record after jurisdiction. vide, consistent with the objectives of sub­ opportunity for an agency hearing. (f) The Chairman of the Board may from section (b), for the establishment of a pro­ (3) Notwithst anding section 301(b)(l), time to time designate any other member gram for the rationing and ordering of the Board shall have the authority to pre­ of the Board as Acting Chairman to act in priorities among classes of end-users of scribe, issue, make, amend, and rescind rules, the place and stead of the Chairman during crude oil, residual fuel oil, or any refined regulations, and statements of policy under his absence. The Chairman (or the Acting petroleum product, and for the assignment section 309 of the Federal Power Act and Chairman in the absence of the Chairman) to end-users of such products of rights, and section 16 of the Natural Gas Act. shall preside at all sessions of the Board evidence of such rights, entitling them to (b) The Board shall be comprised of seven and a quorum for the transaction of busi­ obtain such products in precedence to other members appointed by the President, by and ness shall consist of at least four members classes of end-users not similarly entitled. with the advice and consent of the Senate. present. Each member of the Board, includ­ "(2) The rule under paragraph (1) of this One of the members shall be designated by ing the Chairman, shall have one vote. Ac­ subsection shall take effect only if the Na­ the President as Chairman. Members shall tions of the Board shall be determined by tional Energy Board, upon consultation with hold office for a term of four years and may a majority vote of the members present. The the Secretary, finds that (A) national or be removed by the President only for inef­ Board shall have an official seal which shall regional energy shortage conditions exist ficiency, neglect of duty, or malfeasance in be judicially noticed. which are of such severity or scope as to office. Appointments shall be made with due (g) The Board is authorized to establish require the exercise of the end-use ration­ regard for maximizing the diversity of rep­ such procedural and administrative rules as ing authority, or (B) available petroleum resentation on the Board and for considering are necessary to the exercise of its functions. products are or are likely to be no more the views of recognized interest groups, in­ Until changed by the Board, the rules of the than sixteen million barrels a. day. cluding, but not limited to, groups involv­ Federal Power Commission shall continue "(3) Recognizing that gasoline usage may ing consumel'3, environmentalists, labor and in effect. vary according to characteristics of individ­ management from energy and nonenergy in­ (h) In carrying out all its functions, the ual regions of the country, in establishing dustries, agriculture and different regions of Board shall have the powers authorized by standards of end-use gasoline rationing un­ the country. The terms of the members first the Federal Power Act and the Natural Gas der paragraph ( 1) of this title, the National taking office shall expire (as designated by Act to hold hearings, sign and issue sub­ Energy Board, upqn consultation with the the President at the time of appointment), penas, administer oaths, examine witnesses, Secretary, shall designate individual regions two at the end of two years, two at the end and receive evidence at any place in the of the country as (A) rural, (B) suburban, of three yea.rs, two at the end of four years, United States it may designate. The Board or (C) urban, on the basis of population and one at the end of five years. Not more may, by one or more of its members or by density and establish variable gasoline al­ than four members of the Board shall be such agents as it may designate, conduct location criteria accordingly. members of the same political party. Any any hearing or other inquiry necessary or "(4) The National Energy Board, upon member appointed to fill a vacancy occur­ appropriate to its functions. consultation with the Secretary, shall pro­ ring prior to the expiration of the term for SEC. 402. (a) No person in the employ of, vide for procedures by which any end-user which his predecessor was appointed shall or holding any official relation to, any per­ of crude oil, residual fuel oil or refined be appointed only for the remainder of such son, firm, association, er corporation en­ petroleum products for which priorities and term. A member may continue to serve after gaged in the production, generation, trans­ entitlements are established under para.­ the expiration of this term until his succes­ mission, distribution, or sale of electric graph (1) of this subsection may petition sor has taken office, except that he may not power, petroleum, petroleum products, nat­ for review and reclassification or modifica­ so continue to serve more than one year ural gas, coal, nuclear material, synthetic tion of any determination made under such after the date on which his term would fuels, or eneriJy from renewable resources, paragraph with respect to his rationing otherwise expire under this subsection. wastes, or geothermal steam, or in energy priority or entitlement. Such procedures may (c) (1) The Chairman shall be responsible research or development, or owning stock or include procedures With respect to such local on behalf of the Board for the executive and bonds thereof, or who has a pecuniary in­ boards as may be authorized to carry out administrati;re operation of the Board, in­ terest therein, shall enter upon the duties functions under this subsection pursuant to cluding functions of the Board with respect of, or hold the office of, Board member. section 120 of the Standby Energy Emer­ to (A) the appointment of such hearing ex­ Members shall not engage in any other busi­ gency Authorities Act. aminers as he deems necessary to assist in ness, vocation, or employment while mem­ " ( 5) No rule or order under this section the performance of the Board's functions bers of the Board. may impose any tax or user fee, or provide and to fix their compensation in accordance SEc. 403. The principal office of the Board for a credit or deduction in computing any with the provisions of title 5, United States shall be in or near the District of Colum­ tax. Code, except that assignment, removal, and bia, where its general session shall be held; "(6) Nothing in this act may be construed compensation of such hearing examiners but the Board may sit anywhere in the to prohibit the legal sale of gasoline coupon shall be in accordance with sections 3105, United States. rations by holders of such coupons. 3314, 5302, and 7521 of title 5, United States SEC. 404. Subject to applicable provisions "(7) (a) Action taken under authority of Code, (B) the selection, appointment, and of law, officers of all Departments of the this Act, the Emergency Petroleum Alloca­ supervision of personnel employed by or as­ Government and all Federal agencies shall tion Act of 1973, or other Federal law result­ signed to the Board, except that ea.ch mem­ cooperate with the Board in providing, upon ing in the allocation of petroleum products ber of the Board may select and supervise request, such information as it may require. and electrical energy among classes of users personnel for his personal staff, (C) the dis­ or resulting in restrictions on use of petro­ tribution of business among personnel and SEC. 405. Nothing in this title shall be con­ leum products and electric energy, shall be among administrative units of the Boa.rd, strued in any way to limit the functions of equitable, shall not be arbitrary or capri­ and (D) the use and expenditure of funds the Secretary relating to activities within cious, and shall not unreasonably discrimi­ appropriated for Board functions. The Sec­ the jurisdiction of the Secretary, including nate among classes of users, unless the retary shall provide to the Board such sup­ any shared with the Board. Administrator determines that such a policy port and facilities as the Board may need to SEC. 406. The Secretary may as of right would be inconsistent with the purposes of carry out its functions. intervene or otherwise participate in any this Act, or other Federal laws and publishes (2) The hearing examiners appointed pur­ adjudicatory proceeding before the Board. his findings in the Federal Register. Alloca­ suant to this section shall be subject to the The Secretary shall comply With rules of tions shall contain provisions designed to laws governing employees in the classified procedure of general applicability governing foster reciprocal and nondiscriminatory civil service, except that appointments shall the tim!!lg of intervention or participation in treatment by foreign countries of United be made without regard to section 5108 of such proceeding or activity and, upon inter­ States citizens engaged in commerce. title 5, United States Code. vening or participating therein, shall com­ "(b) To the maximum extent practicable, ( d) In each annual authorization and ap­ ply with rules of procedure of general ap­ any restriction on the use of energy shall be propriation request for the Board under this plicability governing the conduct thereof. designed to be carried out in such manner so Act, the Chairman shall include a statement The intervention or participation of the Sec­ as to be fair and to create a reasonable dis­ showing ( 1) the amount requested by the retary in any proceeding or activity shall not tribution of the burden of such restriction Board in its budgetary presentation to the affect the obligation of the Board to assure on all sectors of the economy without im­ Office o! Management and Budget and (2) procedural fairness to all participants. posing an unreasonably disproportionate an assessment of the budgetary needs of the SEC. 407. For the purpose of section 552b share of such burden on any specific indus­ Board. Whenever the Board submits any leg­ of title 5, United States Code, the Board try, business, or commercial enterprise, or islative recommendation or testimony, or shall be deemed to be an agency. on any individual segment thereof and shall comments on legislation, to the Secretary, SEc. 408. Section 4 of the Emergency give due consideration to the needs of com­ the President, or the Otnce of Management Petroleum Allocation Act of 1973 is amended mercial, retail, and service establishments 17236 EXTENSIONS OF REMARKS June 1, 1977 tion, provide that the Administration shall (h) The Administration may, in an emer­ whose function is to supply goods and serv­ gency as determined by the President, permit ices of an essential nature.". act as the exclus:ve agent of the United Staff are authorized and directed to make States in- the importation into the United States of such technical and conforming changes as ( 1) purchasing crude oil produced outside crude oil and refined petroleum products not are necessary to incorporate the above the United States for importation into the purchased from it by qualified buyers. When amendment into the bill. · United States, the Administrator determines that such ac­ (2) purchasing crude oil produced outside tion under this subsection is in the national AMENDMENT TO H.R. 6804, AS REPORTED the United States for sale to refiners outside interest, permits to import specified quanti­ OFFERED BY MR. CONYERS the United States pursuant to subsection (g) ties, types, and grades of crude oil and refined of this section, and petroleum products shall be auctioned by the On page 90, after Une 20, insert the fol­ (3) purchasing refined petroleum products Administration under a system of sealed bids. lowing new title: outside the United States for importation All such import permits issued by the Admin­ TITLE V-PUBLIC ENERGY into the United States. istration shall be fully transferable to persons ADMINISTRATION ( b) All crude oil and refined petroleum other than the original purchaser. PART A-DEFINITIONS, ESTABLISHMENT, FuNC· products purchased by the Administration SEC. 505. Any procedure provided for in an TIONS, AND AUTHORITY pursuant to subsection (a) of this section amendment to a regulation made by the SEC. 501. For purposes of this title, the shall be sold to qualified buyers free on board President pursuant to section 13 of the Emer­ the point of purchase. The Administration gency Petroleum Allocation Act of 1973 shall term- (1) "Administration" means the Public shall not engage in the business of produc­ provide that the import and purchase of any Energy Administration. ing, transporting, or refining crude oil or product which is the subject of such amend­ (2) "United States" means each of the refined petroleum products on its own ac­ ment shall be carried out by the Administra ­ several States, the District of Columbia, the count or on the account of others. tion in accordance with sections 503 and 504. Commonwealth of Puerto Rico, and the (c) The Administration shall endeavor to SEc. 506. (a) In the performance of its United States Virgin Islands. buy and sell pursuant to this section with­ functions the Administration is authorized : (3) "Crude oil" includes natural gas, out profit or loss. It may, however, in the ( 1) to make, promulgate, issue, rescind, liquefied natural gas, and natural gasoline. case of any individual transaction, sell crude and amend rules and regulations governing ( 4) "Refined petroleum products" in­ oil or refined petroleum products at a price the manner of its operation and the exercise cludes all products refined or manufactured above or below the cost of same if, in the of powers vested in it by those laws; from crude oil with the exception of petro­ judgment of the Administrator, such sales (2) to appoint and fix compensation of chemicala and manufactured products con­ may result in progress toward a lower price such officers and employees as may be neces­ taining petrochemicals. for oil sold in international commerce. sary to carry out such functions, and, to the ( 5) "Qualified buyer" means a citizen of ( d) The Administration may buy crude oil extent that it determines such action neces­ the United States, or a domestic corpora­ and refined petroleum products pursuant to sary to the discharge of its responsibilit ies, to tion, or any department, agency, or other this section through direct purchase, through appoint, without regard to the provisions of instrumentality of the United States or any barter, through the acceptance of sealed title 5, United States Code, governing ap­ State. offers of sale, or through any other means pointments in the competitive service, scien­ (6) "Person" includes any individual, cor­ which, in the judgment of the Administrator tific, engineering, and administrative person ­ poration, governmental agency, department, will enable the Administration to secure nel and compensate such personnel without or instrumentality, or other entity. these commodities at the lowest real cost. regard to the provision of chapter 51 and sub­ SEC. 502. (a) There is established within (e) The terms of any contract or agree­ chapter III of chapter 53 of such title relating the Department of Energy the Public Energy ment entered into by the Administration to to classification and General Schedule pay Administration ,(hereinafter referred to in purchase crude oil or refined petroleum prod­ rates, but in no event in excess of the maxi­ this title as the "Administration") . The Ad­ ucts pursuant to this section shall, to the mum rate of GS-18 of the General Schedule ministration shall be headed by an Admin­ maximum extent practicable, be kept secret under section 5332 of title 5, United States istrator who shall be appointed by the Presi­ by t11e Administration, its officers and em­ Code; dent, by and with the advice and consent of ployees. (3) to contract for the purchase of crude the Senate. Under the supervision and direc­ (f) (1) The Administrator shall by the oil and refined petroleum products from any t ion of the Secretary, the Administrator shall issuance of regulations, determine the system private individual, foreign state, or foreign or by which sales of crude oil and refined petro­ be responsible for the exercise of all powers domestic corporation; and the discharge of all duties of the Ad­ leum products purchased by the Adminis­ (4) to contract for the purchase of manu­ ministration, and shall have authority and tration pursuant to this section shall be factured goods, commodities, and technical control of all personnel and activities of the made to qualified buyers. and managerial expertise within the United Administration. (2) No regulation shall be promulgated States for use in barter arrangements with (b) There shall be in t he Administration under authority of this subsection without seller of crude oil or refined petroleum prod­ full public notice and hearing on same prior a Deputy Administrator who shall be ap­ ucts; pointed, by and with the advice and consent to its promulgation. ( 5) without regard to section 3648 of the of the Senate, and who shall perform such (3) Any regulation promulgated under au­ Revised Statutes (31 U.S.C. 529), to enter into duties and exercise such powers as the Ad­ thority of this subsection shall (A) encour­ age competition within the domestic petro­ and perform such contracts, leases, coopera­ ministrator may prescribe. The Deputy Ad­ tive agreements and other transactions and ministrator shall act as, and exercise the leum industry, (B) allocate available sup­ plies of crude oil and refined petroleum to make such grants as may be necessary in powers of, the Administrator during his ab­ the conduct of its work and on such terms as sence or disability. products equitably on a geographical basis, SEC. 503. When authorized by the President, and (c) insure the maximum utilization of it may deem appropriate, with any agency or the Administration shall, by regulation, pro­ petroleum refining facilities located within instrumentality of the United States, or with vide that no person shall import into the the United States. any State, territory, or possession of the United States any crude oil or refined pe­ (g) The Administration shall sell crude United States, or with any political subdivi­ troleum product unless: oil and refined petroleum products pursuant sion thereof, or with any other person; and ( 1) said crude oil or refined petroleum to this section exclusively for importation (6) to sue and be sued in its own name in products have been purchased from the Ad­ into the United States, except that the Ad· any court of the United States. ministration, and a copy of the bill of sale ministration may sell crude oil to qualified (b) All contracts and other obligations en­ verifying such purchase is submitted to the buyers intending to refine it outside the tered into by the Administration shall be customs officer at the point or port of entry, United States for future importation into the guaranteed by the full faith and credit of the (2) said refined petroleum product is man­ United States in the form of refined petro­ United States. ufactured from crude oil ourchased from the leum products, if the following conditions SEc. 507. There are authorized to be ap­ Administration, and an affidavit attestfog to are met: propriated such sums as may be necessary such manufacture, together with a copy of ( 1) The refinery in which the crude oil in to carry out the purposes of this title. the bill of sale verifying the original pur­ question is to be run is owned directly by SEC. 508. (a) The Administration shall chase of crude oil, is submitted to the cus­ a qualified buyer, and not owned through a submit- to the Secretary for transmittal to toms officer at the point or port of entry, or foreign subsidiary or affiliate of same; the Congress in January of each year a re­ (3) the person importing such oil is in (2) The qualified buyer has contracted port which shall include a comprehensive possession of a valid import permit, issued with the Administration to import into the description of the activities of the Adminis­ by the Administration pursuant to section United States all refined petroleum products tration during the prior calendar year. 504(h) and permitting the importation of manufactured by it from crude oil sold to it (b) Any report made under this section the type, grade, and quantity of crude oil by the Administration; and shall contain such recommendations and or refined petroleum product being imported (3) The Administration has taken care, additional legislation as the Administrator, and submits said import permit to the cus­ pursuant to subsection (f) (3) of this sec­ the Secretary, or the President may consider toms officer at the point or port of entry. tion, to insure the maximum utilization of necessary or desirable to accomplish the SEC. 504. (a) When authorized by the Pres­ petroleum refining facilities located within purposes of this Act. ident, the Administration shall, by regula- the United States. SEC. 509. Chapter 93 of title 18, United June 1, 1977 EXTENSIONS OF REMARKS 17237 States Code, is amended by adding at the forces, several cogent factors appear to cause the real source of anxiety is the self­ end the following new section: have been overlooked. First and foremost proclaimed ambition of Kim n Sung, the "§ 1924. Disclosure of information concern­ the effect on Japan's security and United megalomaniac ruler of North Korea, to im­ ing crude oil or refined petroleum States-Japanese relations have been pose Communism on the South. But since products and speculation there­ largely overlooked. Japan could well the 1953 Korean armistice, an effective bal­ on ance of power has existed in the region due "Whoever, being an officer, employee or choose to seek-further accommodations to the United States presence in South person acting for or on behalf of the United with the Asian Communist powers rather Korea. The preservation of this stability over States or any department or agency thereof, than bear the financial burden of more a. quarter of a century has materially con­ and having by virtue of his office, employ­ substantial rearmament in the face of tributed to the rise of the mighty Japanese ment, or position, become possessed of in­ our retreat. In either case, the choice will economy. At the same time, the American formation which might influence or affect be painful. guarantee, combined with large-scale invest­ the market value of crude oil or refined ment, has helped South Korea to embark on Second, both Japan and the United its own economic miracle. petroleum products, which information is by in law or by the rules of such department or States have a large economic stake Now this balance of power is placed in agency required to be withheld from pub­ Korea and if the climate generated by quite gratuitous jeopardy by the new troop lication until a fixed time, Willfully imparts, an American withdrawal results in a lack withdrawal policy. For in both Seoul and directly or indirectly, such information, or of confidence the South Korean economy Tokyo it is well remembered that American any part thereof, to any person not entitled could suffer seriously. Indirectly, our troops have been withdrawn once before from under the law or the rules of the department economy would suffer also. South Korea, with disastrous results. This or agency to receive the same; or, before happened during 1949, following the estab­ These and other factors such as the lishment of the Republic of Korea the previ­ such information is made public through effect on Taiwan and other friendly regular official channels, directly or in­ ous year. In January 1950, Secretary of State directly speculates in any such product by Asian nations will be considerable, and Dean Acheson specifically excluded South buying or selling the same in any quantity; therefore, I commend to the attention of Korea from the American "defensive perim­ shall be fined not more than $10,000 or im­ my colleagues the editorial by David eter" in the West Pacific. prisoned not more than ten years, or both. Rees, which appeared in the London Then, as now, Kim n Sung was eager to "No person shall be deemed guilty of a Daily Telegraph of May 10, 1977. The edi­ conquer the South. Five months after Ache­ violation of any such rules, unless prior to son's speech, the Communists struck over the torial follows: 38th Parallel, the United States and the such alleged violation he shall have had SoUTH KOREA NEEDS U.S. TROOPS actual knowledge thereof.". United Nations intervened and only after (By David Rees) three years' fighting was the status quo re­ PART B-DoMESTIC ExPLORATION AND stored. The lesson is that any change in the EXTRACTION Mr. Carter's pledge last December that he expected to conduct a "gradual and slow" carefully-poised Korean balance of power SEc. 511. (a) When authorized by the withdrawal of the American troops in South could result in new aggression from the President, the Public Energy Administra­ Korea has opened a Pandora's box of stra­ North. tion- tegic and political problems in north-east INVASION "TRIPWIRE" ( 1) shall have exclusive authority to con­ Asia. It is not only the presence of American tract for- In January, Vice-President Walter Mon­ troops in South Korea that is important. (A) the exploration of Federal lands and dale arrived in Tokyo to seek Japan's ap­ Their very disposition is significant as a waters, and proval for the new policy. After talks with "tripwire" against renewed aggression. The (B) the construction and management of the new Japanese Premier, Takeo Fukuda, U.S. 2nd Infantry Division, guards the west­ extractive facilities (including any mine, rig, an anodyne communique confirmed the pro­ ern extremity of the D.M.Z. This straddles well, platform, or in situ excavation) on jected troop withdrawal from the Republic the primary invasion route towards Seoul. such la':lds and waters, of Korea. Mr. Fukuda stated that the matter Here only 30 miles separates the South for energy-related purposes on the basis of was a bilateral one between Washington and Korean capital, with its seven million in­ sealed bids submitted to the Administrator. Seoul, a statement that was probably made habitants, from the D.M.Z. north of the Im­ except that no such contract for manage­ for prot-0001 purposes. jin. Seoul is also within range of North Ko­ ment of extraction facilities which has a term However, following these talks in Tokyo, rean Frog surface-to-surface missiles based of more than five years may be entered into Mr. Monda.le emphasised that the withdrawal near Kaesong and Kumchong. So there is a by the Administration. of troops would be carefully phased, that it profound awareness in South Korea of the (b) The Administration may not, notwith­ would be implemented in consultation with potential vulnerability of this sector. standing any other provision of law, enter Seoul and Tokyo, and tha.t American air Successive defence lines extend in this into a lease, contract, or other transaction units would remain in South Korea. Alto­ sector from Munsan into the suburbs of which divests the United States of its owner­ gether about 33,000 troops are based in South Seoul. But South Koreans remember that ship or any other interest in or control over Korea, mostly in the American 2nd Infantry Communist tanks advanced swiftly along extracted crude oil or other energy products, Division. There are also about 8,000 Air Force this route to capture Seoul in June, 1950. including, but not limited to, coal, uranium, personnel from the 314th Air Division, with The following year, the Chinese communist and shale oil, or reserves of any of the fore­ its headquarters at Osan, about 40 miles host moved southwards through these same going. south of Seoul. Last August, following the hills, only to have its spearhead blunted by (c) The Administration may not, notwith­ axe-slaying of two American officers by North the gallant Glosters at Solma-ri. standing any other provision of law, accept Korean guards at Panmunjom, the United All the arguments are well understood in any consideration (including any royalty, States mounted a powerful demonstration of Tokyo, where South Korea's security ls con­ payment, license, or fee) on behalf of the its ability to send air reinforcements to South sidered inseparable from that of Japan's. United States with respect to any contract Korea. Phantom jets were flown up from Barely a hundred miles separates the two entered into pursuant to paragraph (1). Okinawa, B-52s arrived from Guam, and even countries across the Tsushima straits. Even ( d) The Administration shall sell all en­ F-llls were sent from the United States. before Mr. Mondale's Tokyo visit, the Jap­ ergy products extracted under its authority It was an impressive show of strength. But anese Foreign Ministry had announced a from Federal lands and waters in the manner as everyone in South Korea and Japan knows, significant recasting of the country's de­ prescribed in part A (relating to importation it is the presence of troops that provides the fence plans. Because of the Carter policy over of crude oil and refined petroleum products) . real American commitment to South Korea. Korea, contingency planning for the Jap­ And redesignate succeeding titles, sections, It is theEe troops that underwrite the mu­ anese Self-Defence Forces now envisages the and references thereto accordingly. tual security treaty signed between the two transfer of Army units away from Hokkaido countries in 1953. So whatever the melliflu­ and the north to Japan's western coast. An­ ous phrases used by Mr. Monda.le in Tokyo, other factor in Japan's strong reaction to Mr. the retention of the ground troops in South Carter's plan is the future of the country's SOUTH KOREA NEEDS U.S. TROOPS Korea. can no longer be taken for granted. £2,000 million investment in South Korea, The Mondale mission was thus the beginning, now Japan's largest market in Asia. and not the end, of mounting apprehension The Japanese possess considerable leverage HON. LARRY McDONALD in Japan and South Korea over America's with the new American administration. Mr. OF GEORGIA real intentions in northeast Asia. Carter needs the support of Japan in his At the centre of the heightened concern world economic summitry. Another very IN THE HOUSE OF REPRESENTATIVES is a new awareness of Korea's strategic situ­ strong card held by the Japanese ls the prob­ Wednesday, June 1, 1977 ation. The security interests of the world's ability that American troop withdrawal from four largest countries converge on this small. Korea would almost certainly result in some Mr. McDONALD. Mr. Speaker, in all heavily armed peninsula. Well over a million form of Japanese rearmament, including the the recent furor over the statement by armed men stand on either side of the de­ development of nuclear capability. Japanese General Singlaub relative to the possi­ militarised zone (DMZ) which divides the defence spending is minimal at present, yet bility of renewed war in Korea following two Koreas. any decisive rearmament would shatter the the scheduled withdrawal of American Tension remains high in the peninsula be- tacit, de facto alliance between Japan, 17238 EXTENSIONS OF REMARKS June 1, 1977 China, and the United States. American in­ lection of nonestablishment, "forgotten" Is­ November 5, 1976, issue, Dr. Dennis F. fluence in north-east Asia would contract. raelis felt it was time for his kind of spice. Kinlaw, president of Asbury College of Only the Russians would benefit. Begin says that he will invite Arab lead­ Wilmore, Ky., forcefully and persuasively The South Korean regime has recently at­ ers to sit down and talk over what he says tracted much criticism in the West. Yet, Israel is striving for, 'peace." calls otir attention to this threat against so carefully poised is the mmtary situation But he won't say Israel has "occupied ter­ academic freedom and religious liberty along the DMZ that the majority of South ritories." He invokes biblical history to call which is inherent in Federal involve­ Koreans, including the legal parliamentary them "liberated territories," and that charac­ ment on campus. I commend this worth­ opposi tlon, accepts the need for extraordi· terization could be trouble. while article to the attention of my col­ nary internal security measures. Even the Several Arab governments have put con­ leagues: jailed dissident leader, Kim Dae Jung, has siderable pressure on President Carter and OF EQUAL OPPORTUNITY AND OTHER declared his opposition to the troop cuts, as his administration for an authentic peace BUREAUCRATIC INTRUSIONS this might encourage Kim Il Sung to invade effort this year. Always, the Arab leaders the South. insist that it will take American pressure on (By Dennis F. Kinlaw) Finally, perhaps, it should be noted that its friend, Israel, to achieve this peace. A revolution has taken place in Amerdcan Korea was unique in being colonised by an­ The Arab drive and the dictum that the life and thought. Few have taken note of it, other Asian Power. The liberation fro~ Im­ United States must pressure Israel irk the and even those who have seem unaware how perial Japan in 1945 thus encouraged a flood Israelis. They believe a solid peace will come radical the change has been and how im­ of sentiment towards the west that still only when they engage in direct negotiations portant the. long-range implications are for endures. Perhaps the gravest aspect of troop with the Arab states, and when there is no us all. The revolution is ln the relation of cuts would be the alienating, demoralising outside imposition of peace by powers like the government to higher education. effect on a brave and loyal ally of the West. the U.S. and the Soviet Union. One great strength of the American way In an uncertain world, where the balance Moreover, the Israelis. aren't exactly en­ has been its careful separation of powers. of forces continues to tilt against the West, chanted with the way Carter has conducted We have just gone through a traumatic re­ this would surely be the most unforgiving himself on the Middle East situation. They affirmation of the integrity of the legislative folly of all. question his single-minded determination to and judicial branches in the face of pressure make 1977 the magic year for peace. from the executive branch. In another bal­ Nor do they like the way Carter, in their ance of power we have historically declared view, wavers on language. One day he sup­ that the family, the church, the school, and LET'S KEEP COOL AND SEE HOW ported "defensible borders," the code term the press are to be free from governmental BEGlN DOES IN TOP SPOT which reassures Israelis, and the next day control. Recent Supreme Court decisions he took it back by describing that phrase as have reaffirmed the separation of church "just semantics." Finally, Carter's casual re­ and state and the freedom of the press, but HON. EDWARD J. DERWINSKI marks about a homeland for Palestinians, a vast change has occurred in relation to the school. OF ILLINOIS some Israelis believe, made Israeli voters anxious and less confident in the ruling As late as the 1930s the federal govern­ IN THE HOUSE OF REPRESENTATIVES Labor Party. In effect, they turned to a ment had little or no control over higher Wednesday, June 1, 1977 George Wallace for security in this election. education. Laws such as those providing for The realities seem to be these: There is social security, workmen's compensation, and Mr. DERWINSKI. Mr. Speaker, I be­ unrest in Israel over its external affairs and unemployment insurance, binding upon al­ lieve it would be a practical recom­ its security. Thus, the "ins" are out. There most every other sector of society, specifically mendation for both administration is a moderate tone in the pronouncements exempted educational institutions. spokesmen and Members of Congress to of a growing number of Arab leaders, and Just a little over two decades ago the there ls good reason for the Saudis, for ex­ Commission on Financing Higher Education give the new Israel Government a ample, to want a quick peace settlement. declared that the strength of higher educa­ chance to organize their administration. So, as usual, the Middle East situation is tion was in its freedom and that this free­ An article in the Chicago Tribune of clouded. What a pity that the striving Arab dom "must be protected at all costs." It pre­ May 27 by Nick Thimmesch, comments nations and besieged Israel can't make peace dicted that federal financing would bring on the recent Political developments in and together bulld a prosperous Middle federal controls that would be destructive to Israel and the reaction in the United East. originality ·and diversity and would finally States to these election results: In the meantime, though, I think that we produce uniformity, mediocrity, and compli­ should give Israel's next prime minister the ance. But in 1952 this was only a prediction. LET'S KEEP COOL AND SEE How BEGIN DOES IN opportunity to show that the reputation he Independence characterized American THE TOP SPOT built years ago doesn't apply now. At 63, higher education from its start. When Har­ (By Nick Thimmesch) and ln command of a nation which needs vard College was founded in 1636, the ques­ WASHINGTON .-One reaction here to the ex­ diplomatic skill as much as lt needs raids tion was raised as to whetber it could grant traordinary election results in Israel was a on neighboring villages, he is in a far dif­ a. degree. In England at that time, Oxford feeling of extreme concern, especially over ferent role than the violent Irgun days. and Cambridge had royal charters to grant whether there still remained a possibllity of Let Prime Minister Begin begin. degrees and th us had a monopoly on higher a Middle East settlement this year, Jimmy education. With their religious tests for ad­ Cart•r style. One would have thought that mission they gave to the Anglican church a the peace dove had flown the coop after Is­ THE FEDERAL THREAT TO favored position that guaranteed both a po­ rael's "super hawk," Menahem Begin, had ACADEMIC FREEDOM litical and a religious elite. In 1642 when taken over. President Henry Dunster and his colleagues The defeat of Israel's Labor Party, not ex­ assumed for Harvard the right to grant de­ actly a habitat for doves, and the victory of HON. WILLIAM L. ARMSTRONG grees, they assumed a right reserved in Eng­ Begin's Likud bloc could understandably OF COLORADO land only for those institutions with special cause professional worrywarts here to wrinkle royal favor. Less than a century later Yale their brows anew. But it's always best to see IN THE HOUSE OF REPRESENTATIVES College followed suit. The result was that just what kind of government wlll be formed, Wednesday, June 1, 1977 when the Revolutionary War broke out, nine and how all the parties in the Midde East institutions in the young republic were drama ultimately react. Mr. ARMSTRONG. Mr. Speaker, un­ granting degrees that only Oxford and Cam­ Begin is regarded by most Palestinians as a der the guise of aiding higher education, bridge could give in England. The ground­ "war criminal," not a statesman. In the late the Federal Government is beginning to work was laid for equal educational oppor­ '40s, Begin, as founder and leader of the Lr­ exert an ominous degree of influence tunity for all, and that without governmen­ gun guerrlllas, got into bloody escapades. over the Nation's colleges and univer­ tal involvement. The result has been an edu­ His group shot and kllled British troops cational system unique among the nations of and Arabs, pulled reprisal raids, and became sities. the world. known to Zionists as "patriots" and to the Prominent scholars and administra­ Despite the urging of many, the U.S. gov­ other side as "terrorists." tors warn that Federal programs are ernment has never established a national To this day, Palestinian terrorists cite the subtly, and in some instances not so university. It has entered the higher educa­ death-dealing Irgun and Begin as compelling subtly, interfering with academic free­ tional domain only with its service academies reasons to fight back in kind. dom. If they are right, and I am con­ like West Point and Annapolis, though even But Israel's new prime minister isn't likely vinced they are, this is a problem c~ here the accreditation of the academic pro­ to be an Attlla the Hun, looking for Arabs to grams has never been done by the govern­ klll. Begin does have a strong sense of Jewish utmost concern to every thoughtful ment. The value and acceptability of the identity, has been a Zionist since youth, and person. work in these national academies is deter­ is deeply scarred by memories of his father's This issue is brought into sharp focus mined by regional accrediting agencies in execution by the Nazis. He is a tough-minded by a thought-provoking article published the private sector. guy in a tough nation, and evidently a col- recently by Christianity Today. In the We have benefited from this "arm's length" June 1, 1977 EXTENSIONS OF REMARKS 17239 relationship. President Derek Bok of Harvard Someone may say that the schools deserve what some call "the fourth branch of gov­ in his most recent presidential report was their fate beca.use they were foolish enough ernment," are now determining the charac­ able to say without fear of contradiction: to accept federal funds. A number of admin­ ter of much of American life. "In an era of universal dtssattsfactlon, it istrators felt that with federal money would Second, our government is now becoming ts well to begin by pointing out that our come controls, and so they courageously re· the judge of matters of deep religious im­ system of higher education, for all its faults, sisted the urge to enjoy the benefits of gov­ port. Some areas intended by the writers of has emerged as the best in the world in the ernment aid. It is instructive to see how they the Constitution to be kept inviolate from eyes of almost every qualified observer. In have fared. One regulation from the Depart­ governmental intrusion ru-e now under fed­ terms of the quality of our research, the emi­ ment of Health, Education, and Welfare on eral regulation. Consider four areas of con­ nence of our leading universities, the degree July 21, 1975, simply redefined the term cern under Title IX: of access afforded to an groups and income "recipient" of federal fin:incial assistance. Marital status. In the Christian religion, strata, and the responsiveness of the system Title IX of the Education Amendments of marriage is held to be an enduring, God-or­ to widely varyine student needs, higher edu­ 1972 declared any institution to which "fed­ dained relationship. Every Christian institu­ cation in this country has no equal. Pre­ eral financial assistance was extended directly tion wants to put examples of marital suc­ eminence of this kind ls a precious asset. It or through another recipient" (italics mine) cess and stability before its young. Yet today is a status that cannot be claimed for the to be officially and legally a recipient of fed­ a Christian college "shall not make pre-em­ quality of our government service, the eral aid and thus bound by all the govern­ ployment inquiry as to the marital status of achievements of primary and secondary edu­ mental regulations that control such recip­ an application for employment." Thus reads I cation, the performance of our labor unions ients. To have one veteran attending on the Section 86.60 (a) of Title IX of the Education or the record of many of our older institu­ G.I. bill puts the institution in the "recip­ Amendments of 1972. tions" (The President's Report, Harvard ient" category. No institution is now exempt. Pregnancy. In the Christian perspective, University, 1974-75, p. 5). President Kingman Brewster of Yale sug­ the conception of a child wt thin a proper The values of this in:lependent educational gested that the government's philosophy is, marriage is a reason for joy; outside mar­ system to our country have been incalculable. "Now that I have bought the button, I have riage it is tragic and wrong. Yet according Persons educated in institutions not con­ a right to design the coat." to current federal regulations, pregnancy trolled by the government were able to de­ How did this involvement become so deep outside marriage is to be considered a "tem­ velop their minds and critical faculties freely so fast? It was not done without reasons, even porary disability." A Christian college is now and bring them to bear fearlessly upon our good reasons. The Second World War, Sput­ precluded from dismissing or disciplining a national problems. What a resource! nik, and the post-war social problems made teacher or administrator for an extramarital Unquet>tlonably the freedom of Americans an America aware that scientific discovery pregnancy, and from refusing to hire an ap­ I to organize religious colleges that grant ac­ and new knowledge were essential to national plicant on these grounds. The regulation, credited degrees (a privilege almost unknown security and well-being. The best place to Title IX, Section 86.57 (b) , hold that we outside the United States) has been a major get these things was in t~e colleges and uni­ "shall not discriminate against or exclude factor in the strength of the religious element versities. Their resources were not substan­ from employment any employee or applicant of American llff'. No religious group was by tial, and so the government offered assistance. for employment on the b:ists of pregnancy, governmental decree kept on the margin of With assistance, though, r,oes accountability, childbirth, false pregnancy, termination of American life. The center was open to all. and with accountab111ty, controls. Then came pregnancy, or recovery therefrom." But the careful respect by the government the quickened social conecience of the fifties Abortion. To the Christian, the sacredness for the independence of the educational and sixties. The government assumed respon­ of human life has the binding effect of law. world is long gone. Non-involvement has sibility for guaranteeing social justice, equal The termination by one person of another's change:l to intrusion, respect to financial and opportunity, and consumer protection. When life ls a religious question. Yet we are not to regulatory control. The extent is frightening. the passage of laws did not seem to be discriminate against an employee or appli­ President Bok reports that compliance with enough, other means were sought. "Recep­ cant for "termination of pregnancy." It is fe:leral regulations in 1974-75 at Harvard tion" of federal monies became the key. Exec­ now wrong to treat a person, single or mar­ ried, who has a.n abortion differently from consumed over 60,000 hours of faculty time. utive orders and bureaucratic regulations I President Willis Weatherford of Berea Col­ followed that produced the maze in which one who develops the fiu. lege says that one-fourth of his time this we are now trapped. Human sexuality. The Scripture says that past year has been spent on governmental All this happened in a period of great diffi­ tn the beginning God made human beings : matters. Bok estimates that the cost to Har­ culty for the colleges and universities. They male and female. In other words, one's sexu­ vard in the same year was between $4.6 mil­ were all struggling with inflation, recession, ality or gender is not an accide~t of nature lion and $8.3 million. The American Coun­ and declining enrollments. Pr!Yate colleges but an essential part of one's pers:mhood. ! cil on Education reported in 1975 that the were unsure they could survive, and many It is not like race or national origin. There equivalent of 5 to 18 per cent of tuition rev­ pled for help from Washington. When sur­ ts a profound di.tference between a ma.le and enues was spent on the implementation of vival and integrity are the options, integrity a female, a divinely wrought difference. One's federally required social programs. Change finds itself upstaged. fulfillment individually should be sought in magazine estimates that the cost of such pro­ In a society where great social programs terms of one's divinely wrought personhood. grams to higher educational institutions last like those adopted within the last forty years Therefore a truly Christian educational pro­ year equaled the total of all voluntary giving involve the great majority of our citizens, gram must on occasion recognize the gender to such institutions, just over $2 billion. So the federal dollar is almost omnipresent. The difference and treat people for what they young share in educational-assistance pro­ are, ma.le or female, in order not to discrimi­ W') run our development programs, not to grams and the old in social security. Every nate against them. But that is now counter sustain or strengthen our educational pro­ tax-exempt organization f"tands in a federally to federal regulations. gram, but to appease the government so that protected position. Reception of benefits Academic freedom and religious liberty we can stay in business. from a federal program became the key to have been vital parts of the atmosphere that Nor is the cost in dollars and time alone. In getting near universal compliance with the has enabled American democracy to flourish. most meetings of educational organizations federal strategies for achieving social justice, Both are fragile and need some protection. today, any creative discussion of education equal opportunity, and consumer protection. It is an illusion to think that politi~al lib­ is at a disadvantage in competing for a place Executive orders and bureaucratic regula­ erty will long survive if these freedoms go. on the agenda with the problems of govern­ tions followed that now are covering us all. Today the balance that has made possible mental regulations. Energies that should go But the cause is good. To object to fight American academic freedom and American into education are spent elsewhere. The 1952 virtues more noble than motherhood and reltgious liberty, to the envy of much of the warning of the Commission on Financing love of country. Should we not comply joy­ world, is threatened. How tragic if in the Higher Education that heavy fe1eral involve­ ously? fight for social reform, very valid in its own ment would produce mediocrity and uni­ Some observations are in order here. First, right, we should destroy the integrity of the formity will soon be fulfilled simply by pre­ there is a difference between law and reg­ institutions essential for achieving social emption. Time, energies, and resource~ neces­ ulations Congress passed a law against dis­ justice and equal opportunity. eary for first-rate education will have been crimination on the basis of sex. Thirty-seven Few people are aware of the unique role spent on compliance. words of law were turned by ImW into eight­ that evangelical colleges have played in the The problem now is more than one of in­ een triple column pages of fi.ne print. When development of Americ3. and in producing trusion. It is rapidly becoming one of control. legislators who pasesd the law learned of the Christian leadership for the world. A look Federal regulations now determine decisions contents of the regulation, many of them in­ at Christian leaders around the world will in areas once considered vital to academic sisted that they had :::10t intended this when show that a handful of small schools have integrity. Decisions on admission, selection they passed the law. The regulation carries had a disproportionate influence. These are of faculty, curriculum, and expenditure of the same weight as law. Yet none of these a priceless resource that we can ill afford to institutional funds that could once be made rules and regulations Ji.as ever been voted lose now. Some semblance of autonomy, with eyes wholly on the quality of the educl.­ upon directly by the people who represent both financial and philosophical, is essential tional process must now be made with one the electorate. And some suggest that it if they are to survive. They never have eye on a multitude of federal regulations. would be an intrusion of the legislative into flourished elsewhere. If the trend of the last Many decisions once made by school admtn- the executive domain for Congress to get very decade cannot be reversed, they will not sur­ • lstrators are now being made by the decrees concerned about this. Anonymous writers of vive here. of bureaucrats in Washington. regulations beyond the reach of the people, I! they go, it will not be thf.I Christian 17240 EXTENSIONS OF REMARKS June 1, 1977 world alone that suffers. The oonditions un­ on Buffalo, giving us the toughest winter saw the daily independent newspaper in my der which they flourish are the same as in history. and reminded us that the nat\lra.l hometown become one of seventy-three those required for a truly free university. If gas that runs our homes and factories ls "properties" (a terrible word making my a government can impose its secular moral running out. That the same shift of winds hometown newspaper sound like a racetrack, philosophy upon all our institutions today. reminded us that we are running out of or a book sound Uke a can of beans). My it can impose its political philosophy tomor­ water in the West, and that this is a key hometown newspaper was absorbed by Gan­ row. The pattern and the machinery will shortage which may be next. That another nett in a trend that now has twenty-five aiready be in place. More than academic or kind of cold wind was blowing out the local newspaper chains controlling more than half religious freedom is at stake. independent publisher, and that lack of the daily circulation_in the country, and even competition was now a key facto1· more and in publishing where some 58 mergers or ac­ more in our society. quisitions last year reduced the number of WATER, ENERGY, AND BOOKS-­ So I will have something to say tonight competitors and saw the Justice Department COMPETITION, WILL IT HELP OR about publishers and broadcasters and the cast a critical eye at this trend. HURT? book fraternity. But what I have t.o say on But first, just a few thoughts on competi­ this subject and on energy and resources tion (or the lack of it) in the search for blows from some of my basic assumptions energy and new r~sources that must be a HON. PAUL SIMON and beliefs. In not every case will they be key to solving the serious problems I've out­ yours, but you will better understand what lined. I believe that competition must play OF ILLINOIS I have to say when I lay them out in the a vital role In this energy issue, that we will IN THE HOUSE OF REPRESENTATIVES beginning. These basic assumptions and fall if it does not. Wednesday, June 1. 1977 beliefs are three: We Americans are accustomed to expecting 1. Competition is essential to American life. the big problems to be solved by big exotic, Mr. SIMON. Mr. Speaker, for some Sometimes it is unpleasant and harsh. It's sexy solutions. In energy for a long time, it time I have been concerned about the the law of the jungle that eliminates one was nuclear power. We were told by Admiral increasing concentration of media power drug store in a town too small to support Strauss in the 1950's. nuclear power would in the hands of fewer and fewer people. two. But those who preach the most a.bout be so cheap by 1979 that we would not have competition sometimes practice it the least to meter it. In the 1980's nuclear probably Roy Fisher, dean of tlle University of and understand it only slightly. There was has some kind of a role. But I have a feel­ Missouri School of Journalism, is one a Sinclair Lewis character in the 1930's that ing that the eventual solution will come, who has spoken out on this issue. reminded me of a man in my hometown. Of not from one grand answer, but a dozen Another is our colleague from Ari­ such people it was said, "He would have been component parts-solar, coal. conservation, z-0na, MORRIS UDALL. A few weeks ago as horrified to have heard Christianity wind and even firewood might be part of he spoke to the Association of American doubted as he would have been to see it the picture-5% here. 2% there and Publishers, the Nation's major book pub­ practiced." Thus it ts with the Chamber of 25 % from conservation. We wm see the in­ lishers. at their national convention, Commerce, the NAM, and I'm afrai<:l some ventiveness of Americans come to our aid t2.lking candidly about the problems of publishers. All of them ought to be backing if we do it right. But none of this will come the Udall program for divestiture of oil com­ to pass unless we restore true competition diminishing competition in this country. panies. For unless we save competition, our t-0 the energy industry. I think of my friend Like on other issues. Mo UDALL has system can collapse. For it ls a system that Congressman Reuss, who has a windmill that brought both wit and wisdom to bear on succeeds on incentives, on the freedom to provides electricity for his house and feeds this matter, and I urge my colleagues to innovate, and rewards those who produce the back into the Wisconsin power grid what read his speech, which I am inserting in most. he is not using, taking doUars off his bill. I the RECORD: 2. The second basic belief is the concern think of the little hydrogen car which takes about bigness. I'm not against bigness per se, the hydrogen out of water, compresses it WATER, ENERGY, AND BooKS--COMPETITION, into a tank, plug it into your Oldsmobile and WILL IT HELP OR. HURT? and I'm not going to shed too many nostalgic tears over the corner grocery or the home­ it will drive you around the block. I helped (By Morris K . Udall) town brewery. A complex society requires big such a car be demonstrated on C&pitol Hill. I come before you today, a man chastened institutions, bigger than yesteryear. I draw a There ts an even more compelling reason by cxpericn~. First, a bloody battle with the distinction between accepting a measure of why competition must be restored, and that newspaper publishers, the subject of three bigness necessary for our time and our so­ is this: no energy program will ever succeed weeks of editorials in such august journals as ciety, and the mad rush to conglomerates and without sacrifice and a real change in the Editor and Publisher and Publishers Auxil­ multinationals which threatens to destroy wa.y Americans live and travel and work. No iary. And I'm reminded of the old story the central principles ·upon which our econ­ matter how many times the President ap­ about the fellow who pressed the local edi­ omy is built. Over the last thirty years, with­ pears on our television screens and asks for tor about his stand on a controversial issue, out deciding to do so, we have let our tax sacrifice, until the oil companies show some and he said, "Listen son, I haven't made up laws and the incentives tbat are avallable sacrifice, the American people are going to my mind, but when I do I'll be bitter." reward tycoons who give you IT&T. I don't continue to believe that they are being That's been the attitude of some reaction, think we get better rent-a-cars or hotels be­ ripped off, that energy crisis is not real, that but not all. And why was all this attention cause IT&T gobbles up Avis and Sheraton. it is the creature of big oil that will fatten directed at the Chairman of the House In­ We probably get worse. their profits. The best way, indeed maybe the terior Committee? Well, it seems in a recent I lament the old dream of the man who only way to break through that confidence speech before the Press Club in Washington, owned a hardware or drug store, who maybe bMrier, is for a little sacrifice on Wall Street I had the effrontery to suggest the trend wanted to take his son into the business to and Houston, through vertical and horizon­ toward concentrated power--economic and expand into two or three. Well now he is tal divestiture of these energy conglomerates. editorial-in the newspaper industry was gone, gobbled up by a local group and then The reality of the matter is that Shell is not something that troubled me. a chain, and then the chain by a conglom­ about to let its coal subsidiary undercut its An old Washington figure, Tom L. John­ erate, and a conglomerate by a multinational oil sales in 1978, nor will it in 1988. The Exxon son, said, .. When you see a situation you headquartered in Cleveland or someplace, refineries are not a.bout to sharpen their cannot understand, look for the financial and who couldn't care less about your neigh­ marketing pencils when they own their own -interest." So I come to Bermuda to address borhood. Just twenty years ago. 400 com­ gas stations. this group of influential Americans, not fully panies owned two-thirds of the manufactur­ Why does the tide of concentration go understanding the publishing industry, and ing assets in America. Today, it's down to 200 only one way? I read every week of more therefore, this last week I looked at the fi­ companies. At the rate we are going, it will concentration, more mergers, more acquisi­ nancial interest. I have some thing to say be 100 within another decade. This alarms tions. We almost never read of spin-offs, which will be greeted, no doubt, with less than total acclaim. But my good friends, I me and' saddens me, and threatens things but only of the man rush to dinosaurs. It's a see similarities ln your industry and the that I think are basic. one way street. Most executives in this room newspaper publishers. Indeed, in some cases 3. When I call for breaking up oil com­ tonight know of still another merger in the you represent the two combined. And while panies, I still believe in free ent.erprise. We making. Are we really better off because of I'm quoting Johnson, let me go back to old nee:i oil companies; they need to be Quite this? When will the day come when the Samuel Johnson in setting the stage for large given the risks and the money involved. Wall Street Journal might report in today's some comments on publishers and publisher Oil companies need incentive and rewards, issue that the X Company, in the interest of reaction. He said, ..The liberty of the press and they ought to be able to make a bundle efficiency and stockholder strength, is spin­ is a blessing when we are inclined to write of money finding the remaining oil and gas ning off a division, turn it loose on its own. So, against oth~rs. and a calamity when we find to be found. I speak tonight of economic 'and not to be a captive, stifled by a giant ourselves overborne by the multitude of our concentration in the communications in­ global octopus. assailant." dustry that hes three television networks Divestiture and a turn in the other direc­ My Washington Press Club speech re­ holding the nation's national television news tion might be good for us, and it might even volved a.round :a central theme: Th&.t a. shift firmly in their grasp. Oi a trend towards be eKciting for oil executives. Back in 1911, of global wind had dumped 10 feet of snow concentration in newspaper publishing that they broke up Standard Oil, the Rockefeller • June 1, 1977 EXTENSIONS OF REMARKS 17241 trust, into 33 companies, and panic was al­ New Hampshire. Many of them said I was are the siren song of concentration. An in­ most in the air. Two years later, it turned trying to relive the good old days, but that dustry has the capability of monitoring its out to be good for everybody. If you owned the tax codes and higher price::l paper and own trends and warning against what may a share of stock in 1911 worth $600, two computers all dictated a change to bigness. be attractive to the accountants, but may years later, you owned 33 shares in divested And they reminded. me, correctly, that not be bitter to society. Must we always sur­ companies worth $900. It was good for con­ all chain papers are bad and that there are render to a profit? The people of this nation sumers, stockholders, and even good for oil independents like Loeb who aren't always sense the corporate growth to bignesss, and executl ves. Some of them who were third good or responsible. Well, let's change the tax similar to their healthy disbelief in the Vice Presidents going nowhere in a giant code then. We did it to save the family farm, protestations of the oil companies that their company, were having a wonderful time run­ surely the local newspaper is a valuable profits are not large enough, they may ning their own little independent companies, enough institution to give attention to the soon tire of the trade publishers spoon­ competing, innovating, and really experienc­ ms that beset the industry. My bill calling feeding best sellers and leaving the fresh ing the competition they had preached.. for an industry-by-industry review by a spe­ and the bold to fend for themselves. This year I propose one major step back cial blue ribbon Commission may give us the The history of our country aud economic toward old fashioned competition, a step means to assist and not hurt these troubled system has been the need every 40 or 50 that might bring us some of the new energy industries. Let me give a brief explanation of years to rejuvenate and revive and make we need. Let me put it into focus. In thls my bill. fundamental change when the system breaks time of difficulty, the American people get The Commission would take three years dcwn. Theodore Roosevelt did it when the one great break for a change. Most of the re­ looking over those industries to see how they t rusts dominated America, and Franklin maining energy reserves---off-shore oll, oil are performing, considering such criteria. as Roosevelt came along in the 1930's to set shale, geothermal, western coal-are owned efficiency, innovation, social impact, price the stage for the great economic expansion by the public, they are on the public lands. and profit. For those that are performing or our own time. FDR used to tell the story I 've introduced a bill that might bring some well, it may make little difference whether on himself of the tycoon who arrived at his competition to the energy industry by limit­ there are two competitors or 200, though in Wall Street office every morning in the '30s, ing the leasing of those lands to those com­ case of doubt we should favor the latter. For bought a paper from the boy for a nickel, panies that are non-integrated., independent those not performing well, the Commission's looked at the front page and cursed and concerns. We wouldn't be forcing anyone to analysis W.Juld show what particular factors threw it into the trash. After a week, the divest, but we would encourage new com­ contribute to the problem and would boy said to the publisher, "Sir, why do you panies to enter the field anj that's the point. prescribe a set of remedies tailored to the waste your money, pay me a nickel, curse, Competition breeds innovation and efficiency. specific conditions. and throw the paper in t he trash?" The Absent competition, industry gets lazy and These remedies will probably include the tycoon said, "Son, it's none of your business, sometimes falls to pay sufficient attention tax code, with its unintentional bias toward but to be honest I am looking for an to anything more than a profit/ loss state­ centralization and conglomeration . Perhaps obituary." The· boy said, "Bu<; sir, the ment. So, my bill says that by 1980, if you we will need tougher an ti trust laws in some obituaries are not found on the front page, want to lease the federal energy reserves, you cases, legislated divestiture in oth ers, while but on the back of the paper." The t ycoon better be an independent oil company or an in others the conventional suit under present responded, "Listen kid, believe me, the independent coal company. We'll give the laws would be enough. Exemptions from obituary rm looking for will be on the front little guy a chance. If Exxon wants to get in antitrust law may also need reexamination, page." on the act, let them try a spin-off, let them to see if they are meeting the intended pur­ Maybe the obituary for our economic sys­ create a producing division that will be eli­ p:::se. In some manufacturing fields. we may tem or a free independent publishing indus­ gible for oil and gas, because it is not verti­ need tax incentives or temporary direct sub­ try may not be on the front page, if that day cally integrated or owning assets in uranium sidies to new entrants, while in other simple ever comes. These great cent ral values may and coal. changes in federal procurement policies may just slip away, merger by merger, acquisition There are some social responsibilities that help open up the market. We ought to con­ by acquisition, stock split by st ock split. are part of doing business in our world, but sider every kind of action that m ight help. Albert Schweitzer said that t he city of they are being lost in some industries, nota­ And now to book publishing. A statistic truth cannot be built on the swampy ground bly in the newspaper industry, and perhaps came to my attention recently and it fits of skepticism and so it ls wit h people's minds. in the book publishing industry. into my concern about concentration of Don't abandon ideas, don't aban don competi­ First, a whack at the newspapers, if I can, p ower in any industry. It is a fact that there tion. All we have to lose ls everything this and then 111 get back to you. Just a genera­ were 58 mergers or acquisitions in the print­ country is about . tion ago, nearly every American city had two ing and publishing field in 1976, a sizable or more dally newspapers. This was a healthy increase over the previous year. Off-setting thing, a valuable source of news and opin­ this trend of concentration somewhat is a ion. The hometown publlsher and editor was growing number of new publishing com­ THE CLEAN AIR ACT OF 1970 a key figure in making decisions. The local panies in the industry, but with increasing publlsher carried a passion for the good of frequency we see the giants getting bigger the community absent in the board rooms and more influential within industry. HON. BILL FRENZEL of the big chains. And now today we have Policies and trends in your industry soon 97.5% of the cities with dally newspapers may not reflect the spirit of innovation, OF MINNESOTA having no local competition. The trend of creativity and courage that has always been IN THE HOUSE OF REPRESENTATIVES acquisition of newspapers by chains has es­ a cherished part of publishing in giving the Wednesday, June 1, 1977 calated to having chains buying other chains, unknown author a chance. What will be the like the giant fish swallowing the big fish impact of conglomerate ownership such as Mr. FRENZEL. Mr. Speaker, the Clean who swallows the little fish. When will the CBS owning Holt, Rinehart and Winston, and Air Act of 1970 was a giant step forward publishing industry stop wringing its hands, now Fawcett, or RCA's ownership of Random in our efforts to clean up the environ­ defending this trend and telling us it is in­ House, or RCA owning G . P . Putnam's, and ment. It was conceived with the best of evitable? When will they start to ask whether Gulf and Western owning Simon and intentions and passed by this body with the British are really better off to have an Schuster. Or the newspaper corporations such American oil company running one of their as the New York Times and Dow Jcnes and the highest of hopes. However, we are dallies? Or whether its really in anyone's Times-Mirror who publish books? Like IT&T back here today, as we were in the last interest to have Rupert Murdoch, honorable with Avis, maybe there might be some gain. session's futile attempt, to construct a and brilliant though he may be, running But do we really get better books, more reasonable program based upon what newspapers in San Antonio and Manhattan chance for unknown authors, or merely mere this Nation can do rather than what we and Greenwich Village. profits for the conglomerate entrepreneurs? would ideally like to have it do. This trend toward bigness and absentee Many in this room will disagree. Some will ownership signifies a real loss to American agree privately. But my purpose is to begin -we can continue to grow and expand society: in this case, a publisher without a dialog, to establish that there may be a as a nation only if we do it with care roots in the community. If the trend in con­ pr:::blem to force the spokesmen of this in­ and concern for the land we live on and centration goes on, so too will the likelihood dustry to examine it and its social implica­ thP air we breathe. It may b ~ difficult to that we'll lose forever the independent spirit tions. achieve that measure of balance but I in the community who had the power, an:i For if any industry has a social responsi­ think we can take a step forward in that sometimes the disposition to blow the whistle bility, it is publishers of books. For we effort by supporting several amend­ on the poll ticians and the promoters. face the loss of communication and an acute ments to today's bill. The agitation that followed my press club absence of ideas in almost every other In the 94 th Congress, I supported the speech ranged from oratory by the President medium, the principal culprit being con­ of Knight-Ridder to a visit to my office by centration and lust for the dollar. Yours i'> Dingell-Broyhill amendments on mobile the Chairman of the Board of the Gannett a healthy industry. Your receipts were up source, or automobile, emission require­ chain, and a complimentary letter from an 7 % in 1976 and an anticipated 8% in this ments. This session I have cosponsored old adversary, William Loeb of Manchester, year up to $4.1 billion. But earning reports their measure and believe that its pas- 17242 EXTENSIONS OF REMARKS June 1, 1977 ; sage is necessary if we are to meet our quality already cleaner than the national Yugoslavia. I ha.ven•t seen my parents for national energy goals and continue our ambient standards was mandated. two years. They don't know about my progress out of the latest recession. I for one am not convinced that this trouble. I don't know how I'll tell them, but I must. Other Members have expounded at body would have passed that language "Maybe when the police come to arrest length upon the specifics of NOx and CO in 1970 and am not certain that it is me I'll resist and they will have to use their requirements. I cannot claim to explain appropriate for 1977. I will be supporting pistols. I cannot. And it will be over." it as well as they have, but I do realize measures to study this question further Nicolae Dascalu, a 32-year-old teacher of that the cost of improving the last 10 and to preserve the rights of our States English at a high school here, ls resigned percent of our emission levels will be in these determinations. to the fact that he has no future. many times greater than the cost of the Explained in very simplistic terms the He is a Romanian dissident who ts a first 90 percent. "nonattainment" provisions of the 1970 victim of the government's decision to nip dissidence ln the bud before tt can blossom According to the EPA, the fuel penalty act meant that, under law. if a geo­ into a significant movement. will be around 8 percent and other re­ graphic area could not attain the am­ When asylum was refused on Monday, he liable estimates have placed it as high bient air standards set for it there would asked if an American correspondent was as 20 percent. The cumulative penalty be no major new or expanded sources around. I happened to be, so we met and cited by the administration for model permitted. This effectively prohibited 88 his story can be told to an audience he never years 1978 through 1985 is in exc~ of percent of the areas monitored from con­ expected to reach. 15 billion gallons or 140,000 barrels per sidering major growth. This is a part He ts a slight, wlrey man, about 5-feet-8, day. This is excessive. In addition, I be­ of the logic which lead the committee with bushy brown hair, a full beard and mustache, and a ruddy complexion. There lieve that we should not restrict indus­ to make significant amendments in these a.re deep laugh lines around his eyes, sug• try options, in performing up to our cri­ provision8. However, I do not believe that gesting his personality in happier times. teria, to catalytic converters alone. We the committee's tradeoff or offset policy But this is not a happy time for him. It should allow the additional leadtime re­ is the best answer. I am not sure that it started in March when he read a story in quired for effective implementation. is legal and I am even less convinced the International Herald Tribune reporting One of the most glaring flaws in our that it is fair. Under the present lan­ a letter by Romanian novelist Paul Ooma 1970 act was the inclusion of a 5-year or guage, pollution and polluting industries calling for the government to live up tG 50,000-mile warranty on emissions sys­ may become a marketable commodity. promises of free expression and other human rights in its own constitution. tems. I agree completely with the Justice Therefore, I will be supporting amend­ "I thought this was wonderful, finally Department statements that- ments to permit waiver of the offset pol­ someone was standing up for human rights we are not convinced that expanding the icy and adjustments to grant further here. I felt everyone should rush to sign his warranty-in effect, transforming it lnto a flexibility to the States in meeting photo­ letter. I did, with two friends. performance guaranteed wlll lead to an im­ chemical oxidant standards. "Ooma heard about this fellow who could provement in its coot effectiveness. The We can continue to make great prog­ write English. He wanted to meet me. I went potential cost of extending the present pro­ ress in cleaning up our air and in pre­ to his apartment. There were eight there duction warranty to control emissions subse­ serving those gains which we have al­ signing the letter. He asked me to stay be­ quent to vehicle purchase will in all proba­ hind to talk, but when the eighth man bility, far outweigh the potential bene­ ready made. I believe that this bill, with signed, the police broke in. I never had a fits .... The Federally mandated warranty some amendment, can accomplish that chance to talk wl th hlm. would have severe implications for the long goal. I also believe that we owe a vote "The police took our identity cards, took run viabillty of independent garages and of thanks to the committee members and down the names, then let all but two men service stations . . . it would become impos­ organizations which have devoted so go. I was released," he said. sible for the independent service stations to many hundreds of hours to its develop­ It should ·be explained here that at that compete with the service departments of ment. time the Romanian government was trying dealers that are franchised by the national to decide how to handle the dissident prob­ automobile manufacturers. Concentration in lem. For a while it was very forebearing, the automobile aftermarket would increase trying to show the world that it was differ­ substantially and the advantages of free com­ THE STORY OF NICOLAE DASCALU ent, less severe than the Soviet Union ancl petition would be lost. Czechoslovakia in responding to the chal­ The only comment that could add to HON. JAMES J. BLANCHARD lenge. But on April 2 Ooma and a number ot the Department's statement would be the OF MICHIGAN other dissidents were arrested. Perhaps the unanimous conclusion of the Small Busi­ IN THE HOUSE OF REPRESENTATIVES government wanted to stifle their efforts well ness Committee that- Wednesday, June 1, 1977 before the preliminary conference on the The performance warranty of the Clean Helsinki agreement to take place in Bel­ Air Act is anti-consumer, anti-competitive Mr. BLANCHARD. Mr. Speaker, the grade in June. Perhaps ft had lost its pa­ and unnecessary to the maintenance of clean Washington Star last Friday carried the tience when, in the face of the need for air. tragic account of Nicolae Dascalu, a 32- national unity to snap bacl~ from a dev­ Both the Dingell amendments and the year-old dissident in Romania astation of the March earthqmi.ke, a hand­ Inasmuch as the question of extending ful of men were sowing discontent. committee bill act to rectify this situa­ "For me." Dascalu said, "life became hell 011 tion by establishing a 18-month/18,000- "most-favored-nation" trade status to April 15 For l O days running I was brought mile warranty. However, here I must dif­ Romania is likely to be before us again to security headquarters for from three to fer with Representatives DINGELL and in the next few months, I want to bring eight hours of interrogation every day. Ou BROYHILL. I believe that the committee this report to the attention of my col­ April 18. the questions, the beatings, the bill will more adequately preserve com­ leagues. threats lasted for 16 hours. "They threatened petition, prevent monopoly development, It is my hope that at the very least. me with death many times. They said they·d and permit a complete scientific exami­ we will again cons1der the Questions of cut my body into little pieces and throw them nation of the consequences of our new human rights and emigration m Roma­ in the river and no one would know what nia when this legislation is brought up. happened to me. regulations. "They would beat me and then ask me to The intent of the Clean Air Act was The article fallows: write statements, such as that I only signed to establish a set of national standards. ENCOUNTER WITH A DISSIDENT IN 0ESPAIR­ the Goma. letter because I wanted a passport, However, in the drafting process we see~ ROMANlAN ls BEATEN AFTER SIGNING PRO­ that all other human rights were all right-: I to have left a number of vital questions TEST; U.S. ASYLUM REFUSED wrote. Over 10 days I wrote hundreds of unanswered. First among these to be (By William Beecher\ pages." judicially settled was the question of sig­ BUCHAREST, ROMANIA.-Nicolae Dascalu Das::alu sat straight in his chair. He kept had fear in his eyes, but resignation, too. wringing his hands as he talked. His was an nificant deterioration. Congress, in its intelligent, good looking, friendly face, but deliberations, carefully plotted levels of "I'm not strong enough to take my own life. So t came to the American Embassy to his eyes looked out of red sockets. I've seen primary and secondary standards neces­ seek political asylum. It was my last chance, that look in Vietnam, on the faces of men sary to protect the public's health and but they cannot help me. But I'm not going who had seen too much combat. It is a welfare. We measured variances and de­ to become an informer, and I'm not going to haunting look of humans who have been liberated on maximum levels. but we left take any more beatings. So, if I am not ar­ pushed beyond the brink of endurance, who it to the Federal district court to deter­ rested when I leave here, I'll go to my home have experienced unspeakable things, yet. mine that the nondegradation of air vmage of Stejaru near the border with who survive. June 1, 1977 EXTENSIONS OF REMARKS 17243 He spoke good English. with a trace of a each day for making the sacrifices and dreds o! miles a.way. Tbey never know here British accent. Had he been schooled in Eng­ enduring the hardships of military train­ morning coffee will be held when they par­ ticipate in an alert. land? No, he had done a lot of summer work ing so that our Nation is free from for­ as a tour guide with British visitors, he said, "If we had an Entebbe of our own and the eign military intrigue. Army didn't call on us, we'd be pretty damned and listens often to the BBC. The story of the modern Rangers is a He had hoped to write. "I have the ideas for mad:' is the way 1st Battalion commander Lt. Col. Edward Yaugo puts it. "We ar~ the 15 novels 1n my head. But they wouldn't be great one, and it is a story that was re­ published here. They would be too honest. So cently recounted in the May issue of cream of the Army. The Ente!>be thing is just what we're trained to do." I postponed and postponed and postponed, Army magazine. Without objection. I in­ clude this article in the RECORD at this Every Black Beret would tell you that the telling myself one day the time would be Rangers could carry out a shock treatment right. point: just as effectively as the Israelis did in "In the meantime, I wanted to study medi­ THE BLACK BERETS Uganda, and some of them would swear they I cine, to keep my mind busy, otherwise (By Lt. Col. Tom Hamrick. U.S. Army, could do it better-morale ls that tall. would go mad. I was going to take an exrunl­ Retired) So is pride in preparednes.5. Col. Yaugo has natlon this summer. But I have no more One thousand-plus supermen-there just had to post an order insisting that no off­ plans now.... " are no other words to describe them--are duty training be undertaken voluntarily The final straw. be said, came last Sunday. standing tn the wings ready for instant •ithout his permission. He had been left alone !or two to three week::;. blast-rur if Washington ever demands a dis­ "Some of these guys are workaholics," he "They called me in at 10 o'clock in the morn­ tant show of force or finds itself with an claims. "They're forever wanting to get in ing. As soon as I entered they started beating Entebbe of its own thousands of miles away. what they cE.i.ll •a. little extra training.' " me. They asked about everyone I bad seen the They are the "Black Berets,•• the Army's You volunteer to join and if you want out, previous week and what was said. They kept tough and effective Ranger units. you just ask. But grown men, being forced me until 1 p.m. They said they would beat me Two battalions strong, one stationed on out for minor disciplinary infractions or be­ until I'm their best informer. I didn't talk. I the east coast, the other on the west, these cause they did not measure up, have been just wanted to come out. airborne Rangers are intended as a versatile known to beg for a second chance. A unit "I then realized that the only chance I have fighting force constantly on push-button personnel officer had to check his records to now is suicide--but I'm not strong enough to alert. determine when the last AWOL croppe4 up; do it. Last night I prayed my heart would fail By day and night, their training program it was siX months a.go. me. That would solve the problem. But I and reason for being reads like an 007 script. "Some of our people consider them.selves must be too strong. So I came here, to the The two battalions constitute a. battle team so important they won't take leave," Col. American embassy, as my last chance. But which is prepared to drop behind unfriendly Yaugo said. At 38, Col. Yaugo claims he feels they cannot help me. lines tonight, march 100 miles into combat like a "granddaddy" by comparison. "You "What bothers me right now is not to get carrying everything from bullets to dehy­ ever see a soldier before who had virtually arrested when I leave here so I can see my drated beans on its back, and conduct a to be forced to take leave? Happens here," parents. Uy father had a small farm. It was successful strike. he said. collectivized. He had to work on construction Moreover, either battalion ls ready to then Whatever the holiday, 85 percent of the for about 10 years but now ls pensioned. He is infiltrate its way back to a pickup zone c.r battalions' strength iS on tap. If Washington a. simple man, but my brothers and my sister delay an enemy long enough-as much as blew the whistle a minute from now. ad­ and I all got educations. five days-until resupply and reinforcement vance elements would be expected to be air­ "I don't know how to break the news to my come along. borne in a couple of hours; the rest of the parents. I was supposed to go to security The name of the game for the 1st and 2nd unit would be following by nightfall. If the headquarters at !our o'clock today. Inste-ad Battalions of Airborne Rangers is the accom­ unit can't carry it. it doesn't own it. On-post I came here. plishment of "Mission Impossible" through mechanization is limited to two jeeps a. "I'm leaving Bucharest because I have no a combination of para.drop, foot-mobility, battalion. purpose here. I have no plan. I'll just wait for stealth, surprise, combat savvy, audacity and "This iS a great place to build up yoUl' them to arrest me. pure guts. ankles," said one young Ranger. "I think they must be waiting for me out­ A ready-for-anything kind of military Foot-mobility is indeed the standing order side. I saw the policemen. But maybe not." organization, the Rangers are trail-blaz~rs of the day. Dawn sees every trooper under• He said goodbye and thanked me for listen­ In an army whlch often requires months to taking physical training, followed by a three­ ing to his story. "Maybe It will give others move from camp to combat. If need be, the to five-mile road march to further warm up courage," was the last thing he said to me as Rangers are prepared to strike now and re­ for an exhausting day. It ls SOP for a Ranger we shook hands. turn home, errand fulfilled, before the story to be able to hoiSt upward of 100 pounds I don't know whether Nicolae Dascalu ma.de bits the headlines. What they might be of personal and unit gear on hiS S,?ine and it past the police, made it to his parents' cot­ called upon to do, to tree hostages or even march 12 miles in three hours. A 20-mile tage in Stejaru. As he left the embassy I was capture an aggressive dictator in his own spurt in eight hours is normal. called to the phone. An appointment with an capital, could conceivably prevent an inci­ Entebbe-type practice runs were a bat­ official to talk about enconomic recovery had dent from becoming a war. talion routine long before the Israeli rescue been arranged. I hope he made it home. The twc- battalions are designed to give the raid made headlines last 3 July. Unite:! States a Sunday punch which would "If we were given orders to rescue the pre::lude a clitf-hanging scurry to improvise governor of Pennsylvania who was being held RANGER BATTALIONS a slapped-together task force which still somewhere in the world, all we'd need is a might take days in the making. picture of him, know who was holding him The battalions are the muscle-platej re­ and how his captors were armed," a unit HON. BO GINN sponses t:> a drawi:ig board dream of the late officer said. "We'd be ready to take it from OF GEORGIA Gen. Creighton Abrams when he was Army there." chief of staff in 1973. His format, which be­ During last year's training stint, as a typi­ IN THE HOUSE OF REPRESENTATIVES c:ime reality the following January, de­ cal example, Rangers conducted a series of Wednesday, June 1, 1977 manded "an elite, light and most proficient full-scale exercises to "rescue" political hos­ lnfa:itry battalion in the world, a battalio::i tages. They stormed a desert hideaway in Mr. GINN. Mr. Speaker. the men who that can do things with its hands an:l weap­ Texas to free an American consul and liber­ make up the elite fighting force of the o:is !letter than anyone." ated a.n American ambassador held behind United States are the men of the Ranger Today, re3dy to go, with its all-::na::i-trans­ barbed wire. A month before the real Entebbe Battalions of the U.S. Army. These per­ portaole equipment pre-palletized at nearby raid, the 1st Battalion swooped down on a sonnel are the most proficient and pro­ airlift points, the 590-man 1st Battalio::i is make-believe oil refinery to rescue 30 Ameri­ fessional soldiers I have ever had the locate:! at Fort Stewart, Ga. Across the na­ can workers being held hostage. ti:m. at Fort Lewis, Wash., a counterpart unit Realism ls built-in. In the latter instance, honor of meeting, and it is an object of has been honed to move out on a battalion­ a. mock-up refinery was c.::mstructed, hostages great pride to me that the Army's 1st sized blitz in the other half of the world. were imprisoned and antiaircraft missiles B~ttalion of Rangers is stationed at Fort The geographic battle zone should not be were installed around the site. Before the Stewart, Ga., in my congressional dis­ p, problem. The Ra"lgers think they are pre­ subsequent surprise strike, Rangers studied trict. p.ued for anything, anywhere. Rugged, real­ aerial photographs of the sector and devised The work of the Rangers is one of istic practice in arms routinely carries t!lem a two-step strategy. (They prefer to strike by those tasks that go largely unnoticed by o-:i arduous training stints ranging from the night.) is steaming jungle to the l::y Arctic, or splash­ Nine 11-man squads parachuted from the general public. And yet it on meu ing ashore amphibiously. Two weeks a month Chinook helicopters under cover of darkness such as these that the freedom and safety i!l the field has become routl!le; no-::10tice and moved into positions around the i·e­ of all of our people depend. We owe the alerts are the expe::te:l. finery. When they seized the antiaircraft Rangers and the other men and women Once air!Jorne. they knO\V they may be weapons, 500 more Rangers pivoted down of our Armed Forces a prayer of thanks dropped on an un~nnounced mission bun- from C-130s to land inside the refinery area. CXXIII--1085-Part 14 17244 EXTENSIONS OF REMARKS June 1, 1977 "It went like it was written by Columbia on, but he conceded that "I'm sure your Preparedness orders to the Rangers detail Pictures," boasted a Ranger sergeant. observations are as good as mine." them to be ready for "raids or special opera­ You won't get an argument from at least Training ls merciless and demanding. tions against deep enemy targets, that is, nu­ one general officer. Although his division Every Ranger is cross-skilled to do his job clear storage sites, missile sites, key enemy had been alerted to expect a Ranger assault and somebody else's. Every Ranger knows first personnel or resources.'' The same Pentagon during a war game in Ger.many, the general aid and he is exnected to be as familiar with planning alerts them to be geared to "rescue still had his command post infiltrated and some foreign arms as he ls with his own. U.S. POWs or political hostages" and to knocked over. He became POW Number 1. "We would expect to use anybody else's "safeguard U.S. citizens, property or invest­ "We think we really shake up people when weapons we could capture," Col. Yaugo notes. ments." Other directives have them standing they're trying to guard against us," Col. Use of demolitions is another aspect of train­ by to tie into heavier forces in an operation Yaugo said. "And when we're successf11l. and ing. or to conduct show-of-force assignments. we expect to be successful, the guys get a Endless hours are spent in fire proficiency. Overall, insists the same edict, the Ranger huge charge out of it.''. A Ranger receives perhaps five to six times battalions "must also be able to perform all His battalion is thick with such men: as much nractice with an M16 as the aver­ traditional light infantry missions, to in­ combat veterans personally famlliar with age infantryman, unit officers say. Hand-to­ clude movement to contact, the daylight con­ the power of surprise after two or more hand combat is also ever on the training tact, the night attack, delays and with­ battle tours in wartime Indochina. ticket. A Ranger is expected to know how to drawals, the defense and other missions." Even minus their Pentagon-authorized kill quietly, if lt comes to that, and to be­ Not a line of this directive is an in-house black berets, members of two battalions lieve that his bayonet can be as good a buddy secret. Word for word, it is published in a. stand out. Every Ranger has a skin-tight in a. showdown as his rifie. pamphlet for visitors. Ranger chiefs hope haircut and his camouflage jungle fatigues In a strike, Rangers are trained to exercise that trotting it all out into the open will are tailored and starched, not by Army order ingenuity and survive by their wits. In a preclude any public misconception that the but rather by individual preference. real Entebb~ situation, one or both of the Army has an unsavory secret weapon which A Ranger salute is brittle, as militarily battalions might expect to be out of contact might be too embarrassing to talk about. "In immaculate as a how-to demonstration in an with the outside world until the mission was no way do we want the public or other sol­ Army training film. You can almost hear completed. Their short-range communica­ diers to think of us as a hot blood-and-guts the elbow snap. And every salute is accom­ tions equipment is designed primarily for outfit," said Col. Yaugo. panied by the claim, "Rangers lead the intra-unit usage. A signal might get out-or The battalions do nothing to stir up pub­ way, sir." Respect runs so high that it isn't it might not. lic interest or news coverage. On paper, the unusual to see privates saluting sergeants. The Rangers have stuck rigidly to Gen. 1st Battalion has a public information offi­ It isn't required; they just do it. "All the Abrams' own-what-you-can-carry directive. cer, but he generates no publicity. Even way" is the reply. A company's man-movable fire support is photo coverage ls bone-bare, almost non­ The same degree of high esprit pervades limited to nine M60 machine guns, two 60- existent. What few photos one rf'porter visit­ Ranger fa.m111es, too. Wife Carol Norton is mm mortars and three 90-mm antitank ing Fort Stewart found available "were gen­ "just one of the women around here who weapons. In the field, a Ranger would re­ erally limited to some atrocious color stuff is terribly proud to be married to a soldier gard even a pup tent as a luxury; whatever made by members of the unit themselves." If in the finest unit in the whole Army." With the weather, his shelter by night is his pon­ the Pentagon decided tomorrow to start the Rangers away so much, wives link to­ cho. Battalion headquarters in the rough is churning the publicity crank, it might find gether in their absence for coffee, spaghetti e. pair of ponchos strung together. past photo records of these unique elements suppers and shopping tours. "We try to be Because Rangers cannot anticipate where woefully inadequate. like a big family, supporting those guys any they might be sent to serve, their training There is no plan in mind to alter this way we can," reports Mrs. Norton. program reads like a travel folder. They course of inaction. "We're just not interested Unit officers keep wives briefed to maxi­ pare.drop by night at least once a. month in creating sensationalism," said Col. Yuago. mum. As far as Rangers are concerned, by and their "battlefield" may be the rattle­ "We're afraid we just might project the unofficial edict the wives are members of snake-infested swamps and pine woods of wrong kind of image to the public." the organization, too. They know that coastal Georgia, the fetid back jungles of Rangers appear too proud of themselves women married to that kind of man can Panama or a target zone atop an Alaskan have rough edges: when two troopers be­ mountain at the end of a rope climb. Their not to lay it on the line. One reporter came came entangled in a demonstration para.­ next training mission could carry them to away unexpectedly surprised, and pleased, drop before the horrified eyes of 1st Bat­ a surprise training assault at an Army post that "they give you answers, honestly and talion wives last year, and then plummeted hundreds of miles away, to a barren strip without any attempt at evasion. You don't to their deaths before a stunned audience, of Southwestern desert or a landing by sea feel that they're trying to keep secrets from troop leaders anticipated a mass submission, somewhere on Chesapeake Bay. the taxpayer." Consequently, what minimum prompted by wives, of transfer requests. Not A Ranger on a ft ve-day field exercise is coverage the Rangers have received has in­ one was turned in. burdened down with everything he thinks variably been good. Individual dedication among Rangers al­ he may use, including dehydrated rations he Yet, the Rangers admit that they have a most shouts. "This is no place at all for a stuffs into every crevice in his pack of cloth­ clinging, 111-conceived tough-guy image to coward or a goldbrick," said one private. "If ing. If he cannot build a fire to heat water overcome, even from some Army generals you don't act like a Ranger, the people to make his dry supper more palatable, he they feel ought to know better. Twice, on around here will turn your life into a living is expected to grin and use whatever liquid foreign assignment, the 1st Battalion has hell. When we tell somebody we're Rangers, at whatever temperature his pair of canteens found local commanders suggesting installa­ we want it to mean something." holds. tion of a special guard perimeter around a Unit sick books tell a story of their own. They may be tigers in the outback, but on Ranger encampment for skimpily defined and off post a Ranger must be every inch a "protective" measures. Ranger sick call reportedly runs about ten "We tell •em right quick we're not there percent of the Army norm. The Fort Stewart gentleman in khaki. When Gen. Abrams created his Rangers, he insisted that "hood­ to rip anything down," Col. Yaugo said. hospital commander, Col. Arthur Buswell, "When we leave, we expect to leave behind a grumbles that his staff hates to perform an lums and brigands" would not be tolerated, and they are not. Discipline is as tough as favorable reputation, and we do." appendectomy on a Ranger. "We have to go There is a waiting line of volunteers and through all that muscle." the training. A fight in a tavern in the town can lead Ranger selectees are handpicked. Officer or How good, really, are the Rangers? Officers EM, every incoming Ranger undergoes a 30- and NCOs point to past records for proof. to quick expulsion. ("We know that most of our men could easily beat another man," day trial period. Men who do not measure up The Rangers have scored toweringly in every said Col. Yaugo.) Two tickets for driving to the Ranger standard are ousted in a hurry, competitive field exercise on home or alien under the infiuence of alcohol also mean the a power delegated to the battalion com­ turf, matching their brags with hard sta­ gate. If a Ranger is caught using drugs, mander. tistics. Letters from pleased visiting generals "there isn't any acceptable excuse," reports The battalion loses a dozen or so volun­ and such ranking personages as cabinet mem­ headquarters commandant Capt. Frank Nor­ teers a month because of the demanding cri­ bers ring with praise. ton. He's got to go. We have to be able to teria. Some fall by the wayside because, as A war-experienced newsman reported to depend on a man 24 hours a day because Sgt. Maj. Henry Caro said, "they can't take Forces Command commander Gen. Frederick we face the constant possibility we may be the Spartan life we lead." Still, reenlistment J. Kroesen that after several days with the called out a minute from now. And the way runs to 60 percent or better. Rangers. "if a Ranger bet me fl ve dollars he we're trained, his buddies must be able The senior citizen of the 1st Battalion, could walk on water, I wouldn't take the to count on him, too." CWO Jose Ibarra, at 48, is one such constant bet." By Pentagon decree, the Ranger mission face in the lineup. Leaving the outfit would The reporter asked Gen. Kroesen his eval­ calls for the battalions "to conduct special be akin to the world's ending for him. He uation of the Rangers, compared to the rest mllttary operations in support of the policy gets a raft of ribbing from fellow officers who of the Army. and objectives of the United States of Amer­ are non-Rangers. The general hedged, diplomatically. He ica." The fine print ts more definite, almost "They tell me I'm nuts to keep going couldn't answer the question, comparing one as if it had been ripped from the pages of through all this rugged stuff," said Mr. unit to others with an entire Army looking an imaginative adventure novel. Ibarra. But in his mind, "They're just June 1, 1977 EXTENSIONS OF.REMARKS 17245 jealous." He's been jumping out of planes other 49 states for the national officer of the for three tiny parts of the government. The since 1949. "It's the only way to travel," he year award. guinea pig agencies were busily converting asserted. Darling has worked in every facet of poUce their portions of President Ford's farewell Individual and unit esprit bits you in the work during her career, and was one of three budget into "decision packages" and other eye. Even slx men on litter-pickup detail Cambridge officers in the original arrest cf trappings of zero-base budgeting. This new­ went about their assignment with grins and the so-called Boston Strangler, Albert De­ fangled paperwork was submitted to a. sub­ starch. Salvo. The other two were Sgts. Duncan Mc­ committee of Vie House Appropriations Com­ "Nobody around here sloughs off," said Sp. Neill and J-0hn Gallagher. mittee which, after Mr. Carter won the Dem­ 4 Bernard Larsen. "It's easy to be gung ho, Darling recalled DeSalvo was arrested at ocratic nomination last summer, decided it even picking up gum wrappers." the corner of Concord and Huron Aves, after ought to get some early practice. s. Sgt. William H. Abebes, who joined the Det. Paul Leonard supplied a picture of him. The experiment comes to an end today 1st Battalion at its founding in early 1974, He had been wanted in several surrounding when the full House Appropriations Com­ agrees that "you just don't see people like communities for questioning about sex mittee meets to vote on the agencies' money this in the rest of the Army. Working with offenses. for the 1978 fiscal year starting next Oct. L men of this caliber, guys who have drive, The only comment she bad about the sus­ It will be the :first appropriations bill ever pride and ambition, makes Ranger service a pect was, "I always thought that he was the written that is derived, in part, from a zero­ pleasure." strangler." base budget request. Rep. Edward Boland Do they moan about training? Sure they During World War II, Darling served in the (D., Mass.), chairman of the appropriations do. "Everybody complains, but at nights and WACS from 1943 to 1945 with part of her subcommittee that ran the experiment, tells their days off you see these same jokers run­ duty in New Guinea and Manila. Her four how this bill differs from those of earlier ning out in the field or working out in the brothers also were in the service during tbe years: "Very little. Very little." gym or doing some of the same stuff they did war. Yet like everyone else involved, Mr. Bo­ all day long," remarked an amazed Pvt. Mark Selection for the annual Gold Medal Award land says "it's been a useful exercise." At Polunci three days after he joined the is J:>ased on four requirements. They are: A least a part of Congress bas had some ex­ Rangers. contribution to the preservation of and per­ posure to the government-wide budget con­ "You couldn'.t run 'em out of the Ranger petuation of the ideals of law and justice cepts it will be facing next January. Officials with a cannon," Pvt. Polunci believes. If upon which our government is based; Rec­ of Ute agencies involved have had some ex­ there's ever an American Entebbe, the Penta­ ognition by her colleagues of her service, perience in imposing the mental discipline gon is going to have some mad hornets on its whether that service be one, of quiet dedica­ of zero-base budgeting on their comfortable hands if the Rangers don't get the job. Count tion of one achieving wide publicity to the we've-alwnys-done-it-that-wa plans for on it. best and highest interests of the nation, her spending tax money. Above all. the partici­ community and law and order. pants have learned something about the lim­ The third is unswerving loyalty to, and itations of l\ir. Carter's magic budget wand, LOUISE DARLING HONORED BY active performance in the defense and secu­ limitations that appear to give self-protec­ VETERANS OF FOREIGN WARS rity of the nation. against its foes, and the tive bureaucrats plenty of room to hide from last, dedication to her official responsibility :;:ero-base economizers. over a period of years and continues growth NO SPECTACULAR RESULTS in her responsibility and experience. HON. JOE MOAKLEY Darling Uves in Cambridge with her hus­ ..There will be no spectacular results," says Rep. Max Baucus (D., Mont), a two­ band, Ralph J., supervisor of fire alarm for OF MASSACHUSETTS term member of the subcommittee who sug­ IN THE HOUSE OF REPRESENTATIVES the City of Cambridge, her daughter, Lesley, gested the experiment to chairman Boland. 22. who is studying for her master·s degree in Wednesday, June 1977 public administration at Suffolk University, "ZBB is going to chip away at little bits here t. and there. It will force the agencies to think and her son, Toby, 19, a freshman at Stone­ twice about what their purpose is." Mr. MOAKLEY. Mr. Speaker, I rise hill College in Easton. today in order to share with my distin­ Indeed, Mr. Baucus and others think the guished colleagues of the Congress an new process will be more useful to Execu­ tive Branch managers who formulate the article which appeared in the May 3, budget than to the Congressmen who later 1977, edition of one of the Nation's great ZERO-BASE BUDGETING scrutinize it. "It would be an impossible dailies, the Boston Herald-American. The task for Congress itself to get into the maze notable career of Cambridge Police Offi­ of paperwork that ZBB generates," says Rep. cer Louise Darling is highlighted in the HON. MAX BAUCUS Boland. newspaper's report. For 27 ·years, Mrs. OF MONTANA In a bureaucratic cycle as regular as the Darling has performed her official duties IN THE HOUSE OF REPRESENTATIVES seasons the annual federal budget originates with competence and diligence. Because deep in the bowles of each agency. Tradition­ Wednesday, June 1, 1977 ally, existing programs are regarded as eternal of this eventful history of community and agency budget officers think only about service, she was recently honored by the Mr. BAUCUS. Mr. Speaker, because of the increments by which funds should be in­ Veterans of Foreign Wars which named the current interest in zero-base budg­ creased. In the fall, Cabinet members and her Massachusetts Police Officer of the eting, I am submitting fo1· the RECORD an agency heads send their proposed budgets to Year. Through professional dedication article describing our recent Appropria­ the White House Office of Management and and outstanding work, she has achieved tions Committee experiment with ZBB Budget. These draft budgets are widely as­ the esteemed recognition which she so and a letter to President Carter explain­ sumed to be padded in anticipation of OMB richly deserves. Her spirit of self-sacri­ ing some of the results of that experi­ cuts. Late in the year the President himself ment. settles major disputes between the agencies fice, quiet reliability, and stead.fast re­ and OMB, and each January the final prod­ sourcefulness serves as a beacon to us One interesting observation is that. uct is sent to Capitol Hill. all. Louise is truly one of Massachusetts' while ZBB can be a valuable tool for Earlier this month OMB Director Bert finest. I join the VFW in congratulating holding down the Federal budget, the Lance told the agencies how this basic cycle her for a remarkable record of many President may be implementing ZBB in will be modified by zero-base budgeting for successful efforts. It is both an honor every Federal agency too fast to give the fiscal 1979. Each of an agency's identifiable and a pleasure to bring the accomplish­ technique a fair trial. activities will become a "decision package," The article and letter follow: with goals specifically described. Agency ments of this peerless public servant to managers are to rank each decision package the attention of the House of Repre­ (From the Wall Street Journal, May 24, in relative importance. Each decision pack­ sentatives and the American public: 1977} age is to carry at least two future budget WOMAN OFFICER WINS VFW HOOVER AWARD APPLYING ZERO-BASE BUDGETING ~rojections, a roughly current level of spend­ (By Dan McLaughlin) (By Arlen J. Large) ing and a lower "minimum" level. It's pre­ WASHINGTON .-Less than a month n.fter sumed that any cut below the minimum level The top police omce:r in Massachusetts this would make the activity not worth doing at year, as chosen by the Veterans of Foreign seating hilllEelf in the Oval Office Jimmy Carter told the bureaucracy to use a zero­ au. "When appropriate," a decision package Wars. is Cambridge Officer Louise Darling, 57, may get a proposed budget increase. a veteran of 27 years on the department. base system in preparing the budget he'll She will be presented the VFW's J. Edgar submit to Congress next January. "By work­ THE FINAL WORD Hoover Gold Medal Award during the orga­ ing together under a zero-base budgeting Decision packages are to be lumped to­ nization's state convention in Springfield system," said the President, "we can reduce gether, or culled out, as the budget propos­ June 17. costs and make the federal government more als climb the agency's management hier­ Officer Darli.ng was sponsored by the Rus­ efficient and effective." archy. As now, OMB and the President will sell E. Hoyt V ;F.W. Post 299 of Cambridge. Even as he wrote that, however, an actual have the final word on what ultimately goes She will compete later with officers from the test of zero-base budgeting was in progress to Congress. 'I 17246 EXTENSIONS OF REMARKS June 1, 1977 When a presidential budget hits Congress periment applied only to the operations of analysts, and planners to be able to do any it's split up into 13 appropriations bills, each the Johnson Space Center in Texas, the Mar- · real analysis in a ZBB context in such a handled by a specialized subcommittee in shall Space Flight Center in Alabama and the short period of time. And, lacking the hard, the House and Senate. Chairman Boland's Kennedy Space Center in Florida. Once again. substantive work that must go into these subcommittee handles money for housing and the officials said they were pleased to be part preparations, I fear that the paperwork will for a collection of agencies that don't :Qave cf the experiment, and once again they ex­ be voluminous and the "meat" sparse. It is an appropriations home elsaiflhere. He and plained why zero-base budgeting didn't quite also unrealistic to expect that OMB, which Mr. Baucus picked two of these for the zero­ apply to everything they do. Lee Scherer, di­ ts already greatly overextended, can review base experiment with the Ford budget: the rector of the Kennedy Center, testified it's the submissions in any depth for either con­ licy­ education and higher job expectations than of Health. makers and the general public seem to be­ ever before all foreshadow a. shortage of I commend this incissive article to my lieve. work.ers to fill low-skill. low-wage, low-status colleagues: The notion that curtailing ill':lgal immigra­ jobs in the United States economy. When WHEN THE DooR Is CLOSED TO ILLEGAL tion wm signifi::;antly reduce unemployment this occurs, in the not-too-distant future, ALIENS, WHO PAYS? among the young. tbe unskilled, members of the aliens who are now viewed as a. burden on United States society may be seen as a {By Wayne A. Cornelius) minority groups, and other sectors of the United States population allegedly being dis­ highly valuable asset. CAMBRIDGE, MAss.-A very predictable thing placed by illegal aliens may prove to be a happens in this country whenever the econ­ cruel illusion. omy takes a sharp turn for the worst: The Many of the jobs "liberated" in this way THE REAL CRISIS illegal alien is rediscovered, Politicians,Jour­ are likely to be eliminated through mechani­ na.Iists, organized labor, and other interest zation or through bankruptcy of the enter­ groups rush to blame him for every imagina.­ prises involved, and many others cannot be HON. HAROLD E. FORD ble problem afflicting American society, from "upgraded" sufficiently-even w ith higher OF TENNESSEE high unemployment to rising crime rates, es­ wages and shorter hours-to make them at­ 1N THE HOUSE' OF REPRESENTATIVES calating social-service costs, overpopulation, tractive to native workers. and balance-of-payments deficits. While the benefits of a more restrictive im­ Wednesday~ June 1, 1977 Immigration authorities crank out ever­ migration policy to the Ame1·ica11. worker more-frightening "guess-timates" of the Mr. FORD of Tennessee. Mr. Speaker, have been grossly exaggerated, the costs of I rise today ta call the attention of my numbers o! illegal aliens "silently Invading" such a policy to both the United States and the country. The pubIIc is warned in urgent the illegal aliens' countries of origin have colleagues in the House to the continu­ and ominous tones that illegal aliens are out been consistently underestimated, ing problem of welfare reform. I have to take their jobs away and add billions of The impact of "closing the door" to illegal been critical of the administration's han­ doIIars to their tax bills. aliens will be felt by the Ameri~an consumer, dling of its welfare reform package, be­ We are now witnessing yet another "redis­ in the form of higher prices for food and cause of the long delay that will come covery" of the illegal alien. Pressures for new many ot her products currently produced with restrictive measures-particularly Iegisiation in implementing it. The President's wel­ alien labor. Failures among small busi­ fare message of last month stated broad that would impose civil or criminal penalties nesses-those with 25 or fewer employees, and fines on United States employers who which hire more than half of the illegal al­ goals that are acceptable to most of us, .. knowingly" hire illegal aliens-have iens from Mexico--will also increase, elim­ but did not mention any specifics. It is mounted steadily. Such restrfctive measures inating jobs not only for illegals but for na­ clear to me that welfare reform is not form the core of the policy package report­ tive Ame1icans. the high priority item with the adminis­ edly recommended to President Carter by his But the adverse impact of restxictive tration that it should be. Cabinet-level task force on illegal aliens, and measures will be felt most intensely in Mex­ they have been proposed repeatedly by vari­ I would like to share with my colleagues ico, which is currently struggling to recover a recent article by noted columnist Carl ous members of Congress. from its most serious economic crisis since The case for a more restrictive immigration the 1930's. At least 2.0 percent of the popu­ Rowan, outlining the problem and its policy is based on three principal assump­ lation-and a much higher proportion of the urgency. I am sure this article will en­ tions: that megal aliens compet e effectively rural poor-depend upon wages earned in lighten most of us, and I now insert it with, and displace. large numbers of Ameri­ the United States for a large share of their can workers; that the benefits to American in the RECORD: cash income. THE REAL CRISIS society resulting from the aliens' contribu­ An employer-sanction law that is even tion of low-cost labor are exceeded by the partly effective in denying jobs to illegal (By Carl T. Rowan) "social costs" resulting from their presence aliens is likely to produce economic disloca­ WASHINGTON.-The Carter Administration here; and that most mega.I aliens entering tions and human suffering on a. massive scale rushed glibly into the ''welfare reform" the Unit ed States eventually settle here per­ within Mexico. This will not be simply a thicket and retreated faster than a rabbit manent ly, thus imposing an increasingly problem for Mexico; the implications for that had bumped into a porcupine. heavy, long-term burden upon the society. United States economic and foreign policy You wonder why? There is as yet no direct evidence to sup­ interests -are obvious. The wcrd is that Jimmy Carter wants to port any of these assumptions, at least with All available evidence indicates that em­ reform welfare on the chea~that is, With­ respect to illegal aliens from Mexico, who still ployer sanctions and other restrictive meas­ out spending any more money-and the so­ constitute at least 60 to 65 percent of the ures-short of erecting a. Berlin-type wall­ cial and moral trend in Amel'ica is such that total flow and more than 90 percent of the will fail to deter economically desperate that is just not possible. illegal aliens apprehended each year. Mexicans from seeking employment in the We are in the midst of rapid erosion of the Where careful independent studies of the United States. American family. This is reflected in the fact im9act of illegal immigration on local labor In the long run, every dollar that is spent that the divorce rate has doubled in a decade. markets have been made, they have found no trying to enforce new restrictive policies There were more than a million divorces last evidence of large-scale displacement of legal would be much better spent on programs to year, with even more separations and deser­ resident workers by illegal aliens. Studies reduce the "push" factors within Mexico and tions. Government analysts estimat e that of have also shown that l\Iexican illegals make other sending countries that are primarily every five couples who marry this year, three amazingly little use of tax-supported social responsible for illegal immigration: rural will not remain together. services while they are in the United States, unemployment and underemployment, low This produces the growing phen omenon of and that the cost of the services they do use incomes, and rapid populat ion growth. the single-parent family. We had 3,260,000 of June 1, 1977 EXTENSIONS OF REMARKS 17251 them in 1970. Last year we had 4,900,000. And to increase Government spending on harmful than its predecessors. But can our all but 500,000 of these single-parent families favored energy projects and increase the economic system survive Federal control of were headed by women. power of energy bureaucrats. Conse­ the pricing, the production, the distribution, To understand the impact of this, you have the import of energy? to understand that single-parent fam111es are quently, I hope my colleagues will think Do not be misled into supposing that the the poorest in the land-especially those 4,- twice about the need for a super energy energy problem ls a purely technical problem 400,000 families headed by women. If you agency and I hope they will take the time that engineers can solve. No government want a grim summary of what has happened to read Prof. Milton Friedman's analy­ engineer is in as good a position as you are to to the American family, ponder these statis­ sis of such an agency: decide whether you would rather use expen­ tics: A DEPARTMENT OF ENERGY? sive energy for heating your home, driving More than 11 million children under age your car, or helping to produce one or an­ 18-that·s one out of every six-now llve with (By Milton Friedman) other product for you to buy. No government only one parent. Recent news stories on President Carter's engineer is in as good a position as the owner Eleven percent of all white children live in energy proposals stress an alleged contrast of a factory to choose the most economical homes where the father is absent. between rhetoric and substance. The rhetoric fuel for bis purposes or the cheapest way to Forty-one percent of all black children live is tough-talk of the "moral equivalent of conserve energy. No government engineer can in homes where the father is absent. war," the need to change life-styles, the sacri­ replace the market in calculating the in­ Of the white children who live with their fices that citizens will be asked to bear. The direct effects of energy use or conservation. mothers, 37 percent live below the poverty substance, it is said, is mild-a hypothetical And no government engineer will enforce the line. future gas tax, every stick to the consumer ever more numerous edicts that will come Of the black children who have only a balanced by a carrot, the invisible corpora­ down from on high. That will be done by mother present, two out of three live in tion rather than the visible household to bear policemen. poverty. the brunt of costly conservation. Even the Make no mistake about it. The establish­ The trend toward single-parent families President is reported as telling lawmakers ment of a Department of Energy, with the grows because of another social-moral phe­ that the program is not really so tough. powers requested by the President, would be nomenon. I reported in an earlier column A TROJAN HORSE a further major step toward converting our that this country has an epidemic of teenage I submit that these news stories overlook, free-enterprise system into a. corporate state. pregnancies, with some 200,000 teenagers or take as innocuous, the key element in the bearing babies out of wedlock every year. proposal. If it alone were adopted, it would With movte stars and other celebrities now presage a major revolution in the institu­ openly bearing babies outside m3rrtage, a lot tional arrangements for producing and dis­ THE HOSPITAL COST CONTAIN­ of the stigma of "illegitimacy" is otf. Thus tributing energy. That element is the estab­ MENT ACT OF 1977 more than half our pregnant teenagers now lishment of a Federal Department of Energy want to keep their babies. with far-reaching powers. This is the Trojan This adds immensely to the cost and com­ Horse, or to mix metaphors, the entering HON. DOUGLAS WALGREN plicatiorn.i of welfare. The nation's largest wedge, that is camouflaged by the 103 spe­ OF PENNSYLVANIA cash assistance welfare program is Aid to cific pieces of the complex Carter-Schlesinger IN THE HOUSE OF REPRESENTATIVES Families with Dependent Children (AFDC). program. HEW reports that there were 11,215,436 recip­ Why is the est::i.blishment of a Department Wednesday, June 1, 1977 ients in January, an increase of 31,902 over of Energy so important? Because it enthrones Mr. WALGREN. Mr. Speaker, the December. The total cost in January was a bureaucracy that would have a self-interest $844,787,000. in expanding in size and power and would AFL-CIO is supporting the objectives of Now, the federal government paid only 55 have the means to do so--both directly, President Carter's hospital cost contain­ percent of that AFDC t::ib in January. Unless through exercising price control and other ment proposal. The AFL-CIO's legislative President Carter wants the governors, mayor3 powers, and indirectly, through propagan­ director, Andrew J. Biemiller, testified on and other local officials beating down the diZing the public and the Congress for still May 11, 1977, in support of the basic gates to the White House, his welfare reform broader powers. The new Energy Department thrust of H.R. 6575, the administration had better say that the federal government will produce distortions and disruptions, will now pay 100 percent of the AFDC bill. measure, and suggested some amend­ which its Secretary and its bureaucrats will ments to the bill. There is just no way Uncle S 1m can do take not as evidence of their own malfeasance that a.nd meet Carter's dream of welfare re­ but as demonstrating the need for still Mr. Biemiller testified at a joint hear­ form without spending any more federal dol­ broader powers. ing of the Health Subcommittees of the lars. It can't even be done without raising the This scenario is by no means purely hy­ Ways and Means and Commerce Com­ total overall cost of welfare. pothetical. The Federal Energy Administra­ mittees. I include his statement at this That ought to suggest to someone that this tion was established in 1973 in response to point in the RECORD and urge that my country's greatest problem is not the energy the Arab boycott. After several extensions, colleagues take time to read it : crisis, or crime, or the Soviet military threat. its staff has gone from zero to 4,000 in less On behalf of the AFL-CIO I wish to Our great weakness lies in the fact that we than four years. And by now, it is only one thank you for the opportunity to share with have 11 million children in single-parent of no one knows how many agencies that the Health Subcommittees of the House families, many of whom know nothing but have mushroomed to "solve" the energy Ways and Means Committee and the Inter­ instability of family life, poverty, hopeless­ crisis that the FEA and its associated agencies state and Foreign Commerce Committee our ness. have created. We are now at the next stage: views with regard to R.R. 6575, the Hospital The crucial question before the Carter Ad­ the drive to consolidate them into a depart­ Cost Containment Act of 1977. ministration is this: Dees anybody there ment-to start out with nearly 20,000 em­ This bill would establish a Federal pro­ really know how to "reform" welfare so as ployees. gram to place a. ce1ling on hospital revenue to enable these children to later join in pro­ Moreover, the experience is by no means increases of a.bout nine percent per year, ducing stable, productive families? unique to energy. For example, the Depart­ allow states with established hospital cost ment of Health, Education and Welfare was containment programs and some others to established in 1953 to consolidate a growing opt out of the Federal program, provide for PROF. MILTON FRIEDMAN SUG­ number of separate agencies. Its total spend­ an automatic adjustment to the ceiling for GESTS THAT THE NEW DEPART­ ing has exploded from less than $7 billion in hospitals in growing communities and de­ MENT OF ENERGY WOULD BE A 1954 to a.bout $160 blllion currently; the clining communities and allow for an excep­ TROJAN HORSE number of bureaucrats, from fewer than 36,- tion process for hospitals which might ex­ 000 to more than 140,000. It now has the perience hardship in meeting the ceiling. largest budget of any Cabinet department, Since wages of nonsupervisory workers have and no end is in sight. not contributed significantly to hospital HON. JACK F. KEMP It would be child's play to multiply ex­ cost inflation, they are appropriately not OF NEW YORK amples. The typical Federal agency starts taken into account in determining the ceil­ JN THE HOUSE OF REPRESENTATIVES small, grows slowly for a while, and then ing under the Federal program. The bill has explodes. minimal disclosure provisions and Title II Wednesday, June 1, 1977 TOWARD A CORPORATE STATE would place a limit on hospital capital Mr. KEMP. Mr. Speaker, the House is A Department of Energy has the potential expenditures. on the verge of considering a bill to of being the most powerf\11, and the most The average cost per day of a hospital stay establish a $10 billion Department of harmful, of all Federal agencies. It would has been increasing at a rate of a.bout double control the lifeblood of our economic system. the rate of increase of the Consumers Price Energy. I believe that such an agency is Its tentacles would reach into every factory, Index. According to the Council on Wage entirely unnecessary, unlikely to do any­ into every dwelling in the land. Our economic and Price Stability the average cost per day thing except perpetuate the Government system has been able to survive the U.S. of a. hospital confinement was $191 in Sep­ controls which caused our present energy Postal Service. It bas been able to survive tember 1976. This represents an 18.4 percent problems, and likely to become the vehi­ Amtrak, I suspect that it will survive Con­ increase over the same month in the previous cle of special interests who will use it rail-though Conrail is potentially more year. 17252 EXTENSIONS OF REMARKS June 1, 1977 Clearly, something must be done. mitting doctors and hospital administrators Thtts, since wage increases of nonsupervis­ We believe the basic approach of H. R. 6575 to allocate their own resources efficiently." ory employees have no bearing on the run­ ls a feasible one over the short run. It will Commenting on the President's statement, away inflation tn hospital costs, we strongly not be, nor can it ever be, a permanent solu­ AFL-CIO President George Meany on April 25, urge the exclusion of the wages of nonsuper­ tio11 to the escalating cost of health care. 1977 stated: visory employees from the hospital's base Any attempt to single out a single industry "In his message, the President recognizes accounting year for purposes of determining to the exclusion of others tends to build that hospital workers have not been responsi­ the allowable increase. up distortions and stresses with respect to ble for hospital cost inflation and proposes However, request for such exclusion should the allocation of manpower and capital adjustments in the containment formula for not be optional with the hospitals as is pro­ resources. wage increases for nonsupervisory hospital vided in Section 124 of H.R. 6575. This sec­ Moreover, H.R. 6575 singles out only one employees." (The complete text of President tion purports to exempt nonsupervisory per­ segment of the health industry, albeit a Meany's release ls attached as Appendix A of sonnel wage increases from the hospital reve­ large segment, without controlllng physician this statement). nue limit. Instead, it provides an incentive fees and incomes, the high cost of drugs, We strongly support the concept that the for hospitals to continue to increase expendi­ nursing home care and home health services wages of nonsupervisory employees must be tures in those areas which have been most and without recognizing the inevitable im­ determined by free collective bargaining. responsible for health care inflation. This 'Pact on costs of dumping expensive long­ Hospital wages stlll lag behind the average loophole ls provided by the optional nature term chronically 111 patients onto the public wage for all private nonsupervisory employees of the recalculation of revenue limits as ilospital sector. and even behind the average wage for serv­ stated in Section 124. In short, if hospitals A far more effective and flexible means of ice employees. In 1976, the average hourly request a modification of their revenues to cost control over hospital expenditures would earnings of nonsupervisory employees in all eliminate the effects of nonsupervisory wages, be to phase-in coverage for hospitalization nonfarm employment amounted to $4.87. For then nonlabor costs can only rise by the per­ under the principles of the Health Security service employees, it was $4.36 and for hos­ missible limit (e.g., nine percent). If, on the Bill (H.R. 21 and S. 3) introduced by Repre­ pital workers only $4.18. Assuming a full other hand, a hospital does not request such sentative Corman (D-Callf.) and Senator work-year of 2080 hours, the annual earnings a modification, then it 1s possible for non­ Kennedy (D-Mass.). Under the Health Secu­ of the average hospital worker would come to labor costs to rise by as much as 14 percent rity Program the Health Security Board $8694, substantially below the level of an by shifting the burden of the program onto would have the leverage of being the sole austerity budget of $10,041 for a family of the shoulders of low-wage workers by not source of payment for hospital services. This four in an urban community. From 1968 to granting such workers any increases. establishes a situation where negotiation be­ 1976 the wages of hospital employees in­ The following numerical example mus­ tween two parties, each having considerable creased by only $1.87 while those of em­ trates the problem: power, can strike a bargain as to each hos­ ployees in service jobs increased by $1.93 and Assumptions: pital's total budget. These negotiations of all nonsupervisory employees in private 1. Nonsupervisory labor costs=35 percent would take place on a hospital-by-hospital industry by $2.02 even though it was during of total operating costs. basts to provide maximum flexib111ty, equity this period that hospital employees gained 2. Nonlabor expenses plus administrative and adaptation to local circumstances. coverage under the Fair Labor Standards Act Ealaries=65 percent of total operating costs. Under Health Security there would be no and for the first time large numbers of them 3. Cap=nlne percent. arbitrary ceillngs, no complicated prospective were benefited by collective bargaining nego­ If a hospital can hold wage increases to reimbursement formulas nor a deluge of tiations. (See Appendix B for the average zero percent the net effect is as follows: complicated regulations. hourly earnings for all private employment, Labor costs held to O percent x .35 = 0 It should be pointed out that negotiation all service employment and hospital employ­ Nonlabor costs rise by 13.85 percent x .65= between payors and providers of health ment from 1968 to 1976). 9 percent services is a characteristic of western Euro­ Clearly, hospital workers are st111 under­ Total increase, 9 percent pean national health insurance schemes. paid. Payors and providers mutually respect the The Administration hopes that through In other words, nonlabor costs which have power and integrity of each other. In this this program, hospital expenditures can be been the source of health care inflation could country, the providers have all the power to contained to about a nine percent increase increase by nearly 14 percent. seteharges and fees and all third parties annually. Elimination of wages from the The solution to this flaw in the legislation play the passive role of paying bills unilat­ base will not compromise this goal. In fact, is to require the Secretary to modify for all hospitals the inpatient hospital revenue 11- erally determined by the providers. America an average wage increase of nine percent per year 1s better than what unions tn this in­ mit to assure exclusion from the base of has made a rather unique contribution to wage increases of nonsupervisory employees. provider reimbursement in that the United dustry have been achieving. Collective bar­ gaining settlements have averaged much This can readily be accomplished by drop­ States is the only country in the world that ping the language at the beginning of Sec­ reTmburses hospitals and physicians retro­ less. In 1975, the median bargained wage in­ crease amounted to 7.7 percent. In that year, tion 124(a) which states: spectively, that is, by cost-plus reimburse­ "At the request of any hospital which ts ment of hospitals and usual and customary the cost-of-living rose 9.1 percent. Even or­ ganized hospitals were unable to keep up subject to the provisions of this title and fees for physicians. No wonder the United which provides the data neceEsary for the States has outstripped every other country with the cost-of-living. In 1976, the average negotiated wage increase amounted to 6.4 required calculatton." in the world in the percentage of the gross Section 124(a) would then begin: national product it devotea to health care. percent while the cost-of-living increased 5.8 percent which stm meant a drop in real "The Secretary shall modify . . . etc. For example, in the year ending June 30, 1975 The principal cause of hospital cost infla­ Canada spent 7.0 percent of their GPN on wages over the two-year period. Nor do an­ ticipated wage increases in this industry rep­ tion ts not wages but the control doctors ex­ comprehensive health services without any ercise over the manpower and capital re­ deductibles and covered 99 percent of their resent a threat to the nine percent cemng. The AFL-CIO unions with substantial sources of the hospital. This control in volun­ population while the United States spent 8.3 tary hospitals ts exercised without any ac­ percent of the GNP for health care with de­ membership in the hospital industry are the Service Employees Ir'.ternational Union, the countabllity to either the hospital or to the ductibles, with substantial benefit gaps and publi~. The result is dual administration, left 12 percent of the population without any American Federation of State, County and poor planning, duplication of expensive and health insurance at all, public or private. Municipal Employees and Local 1199, of the seldom used equipment and the purchase of Retail, Wholesale and Department Store But for the short run, in general, the AFL­ new equipment the effectiveness of which ts CIO supports the Administration's plan to Union. These unions wtll be testifying in seldom evaluated. establish limits on total hospital revenues, more detail with respect to wages in the hos­ Unfortunately, the bill provides initially or hospital budgets, especially since, unlike pital industry and their collective bargain­ for the exclusion of at least six states, pro­ ing contracts. current programs, such limits would apply vided the Governors of these states request equally to all third party payors including The recent staff report of the Council on excl us ton and the Secretary of the Depart· Blue Cross, Blue Shield and commercial in­ Wage and Price Stab111ty, "The Rapid Rise of ment of Health, Education and Welfare ap­ surance as well as to Fed·eral reimbursement Hospital Costs," clearly shows that hospital proves. The states that could opt out of the under the Medicare, Medicaid and Maternal wages have only been a. minor factor in es­ program under Section 117(a) include: Mas­ and Child Health Programs. calating hospital coFts. Total labor costs were sachusetts, Connecticut, Maryland and Wash­ the source of only about one-tenth of the ington. Section 117 (b) would also allow the President Carter's health message stated annual increase in average costs per patient, with respect to the Hospital Cost Contain­ states of New York and New Jersey to opt out ment Program: per day. According to the American Hospital of the Federal program. Association, payroll expenses have steadily The AFL-CIO strongly favors a national "This legislation is not a wage-price con­ declined as a proportion of total hospital ex­ program with uniform standards and uni­ trol program. It places no restrictions on the penses from 66 percent in 1962 to 51 percent form administration. We find no convincing hospital's ab111ty to determine its charges for in the last quarter of 1976. But AHA payroll evidence that these states have performed an any particular service. It places no limit on data includes salaries of supervisory em­ effective job of controlling hospital costs. A the size of any wage demand or settlement. ployees. The percent of hospital expenses study conducted by ICF Incorporated for The program establishes an overall limit on represented by nonsupervisory employees ts the Federa tton of American Hospitals indi­ the rate of increase in reimbursements, per- only 35 percent. cates that in 1974-75 the states with manda- June 1, 1977 EXTENSiONS OF REMARKS 17253 tory rate-setting programs had slightly Each hospital should provide promptly on the local Health Systems Agency. The RSA smaller increases in hospital expenditures request by any citizen all cost reports sub­ is authorized to investigate the complaint per case than states without controls. How­ mitted to Medicare, Medicaid and third-party and upon a finding that the complaint is ever, this reduction was more than offset by payors during 1975 through the present. In justified, the Secretary may exclude the of­ increased utilization. The result was that the addition, the hospital should disclose on re­ fending hospital from participation in Medi­ annual increase in hospital expenditures on quest its IRS Form 990 or an equivalent com­ care, Medicaid and the Maternal and Child a per capita basis was 19.l percent for the plete listing of its total receipts, expenses Health Programs. states with controls versus 18.7 percent for and disbursements, including its total assets This section is not strong enough. For one the states with no controls for the years and liabilities for the period 1975 through the thing, the Health Systems .Agencies have in­ 1974 and 1975. present. sufficient funds to conduct such investiga­ ;Furthermore, Section 117 would leave the Each hospital should disclose on request tions nor are they staffed to perform this door wide open for other states to opt out of the total wages, including all fringes and function. We believe this section should be the Federal program in the future. Section benefits (for example automobile, housing, strengthened by providing incentives for 118 would also allow any state to opt out of et~.) paid to its ten highest paid employees; voluntary hospitals not to transfer unprofit­ the Federal Hospital Cost Containment Law and in the c:ise of hospitals which pay such able patients and reward public hospitals for simply by establishing an experimental or s:ilaries, the hespi tal should disclose the accepting such patients. demonstration program of prospective reim­ names, salaries and all fringe benefits of em­ TITLE II-LIMITATIONS ON HOSPITAL CAPITAL bursement under Medicare. Sections 117 and ployees receiving in excess of $30,000 per year. EXPENDITURES 118 are nothing less than an invitation to the Dehiled conflict of interest statements should be disclosed by the hospital on This title would set an annual national states to assume the responsibility for hos­ liinit on new capital expenditures for hospi­ pital cost containment, a task they have request for all hospital governing board mem­ tal construction. The nations.I limit would been unable to perform in a satisfactory bers, adininistrative staff and medical staff be allocated to the states on a formula basis manner in the past. chairmen. Conflict of interest statements which would also take into account other However, if despite our recommendations, must list all investments and holdings repre­ factors such as the number of beds in the the possibility for states to opt out remains, senting an interest in excess of 0.5 percent state or local service area. in any concern dcing business with the hos­ then state hospital cost containment pro­ pital. The AFL-CIO strongly supports this limit grams must include all of the requirements on new hospital construction. As stated bv of the Federal law including the exclusion of The hospital should disclose on request for President Meany, "we endorse the Adminis: nonsupervisory wages from the nine percent the current and three most recent fiscal tration's plan to limit capital expenditures ceiling. The President's health message years, the total receipts of its pathology and for new hospitals and the proposed efforts to clearly stated: radiology departments, including the gross encourage Health Maintenance Organiza­ "Allow states which operate cost contain­ income received by the physicians in charge tions." With respect to the construction of ment programs, and are capable of meeting of these departments. In the case of anes­ new hospitals for HMOs, the construction or the Federal program's criteria, to continue thesiologists, pathologists and radiologists modernization of a one hundred bed hospital their own regulatory approaches." who practice in the hospital but who bill would reduce the need for hospital beds in a R.R. 6575 does not conform to the Presi­ separately for services, an such physicians given community by more than two hundred dent's message. One of the specific criteria should disclose their gross and net incomes beds. Prepaid group practice plans only need for the current and three most recent fiscal 1.5 beds per thousand subscribers while the stated by the President is "an adjustment for years. hospitals which provide wage increases to standard for fee-for-service hospitals is 4.0 In addition, it would be desirable to dis­ beds per thousand. Priority should be given, their nonsupervisory emoloyees." But R .R. close the following: 6575 would not make receiot of a waiver by therefore, to construction funds for HMO Each health systems agency should have hospitals. a state conditional upon meeting that cri­ authority to collect from each hospital in its terion. If waivers are to be permitted, this In co_nclusion, Mr. Chairman. we approve must be made explicit in the statute. heal th service area a listing ct the total cost the basic thrust of this bill which would es­ Section 124(d) would sine-le out for review for an average stay in the hospital for the ten tablish a ceiling on hospital cost increases the adjustment to hospital revenue that most common medical and ten most com­ but the burden of cost cont ainment must mon surgical procedures performed by acute not be borne by low-paid hospital employees. would result from the exclusion of non­ care hospitals in the health service area at supervisory wages from the base year. Wages We strongly urge that the improvements we least every six months. The health systems have suggested be incorpora.ted into the final should not be singled out for review in agency should be required to promptly com­ eighteen months. The AFL-CIO believes the bill that is reported out and passed by the pile the listings and each hospital should House of Representatives. whole program should be reviewed within prominently post the listings at its main en­ eighteen months by Conrzres:s and not only trance area and make the listing available on APPENDIX A by the Administration. The dislocations and request to any person. Statement of AFL-CIO Presi dent George inequities that wm inevitably develop Each hospital should prominently post in Meany, on Administration's Hospital Cost thrOUJ?h time Of a ceiling on one industry's its main entrance area the following infor­ Containment Program, April 25, 1977 expenditures would require annual review in - mation: AFL-CIO President George Meany today our opinion. Eighteen months is the maxi­ (1) whether or not the hospital conducts made the following comment on President mum amount of time that should be allowed preadmission certification for all elective ad­ Carter's health message: for the Administration and Congress to re­ missions. President Carter's health message has .fo­ view the whole program. (2) whether or not the hospital requires a cused public attention on t he need to con­ DISCLOSURE second opinion for all elective surgery. tain hospital costs now risin g at a rat e of One of the m::i.jor disappointments of the (3) whether or not the hospital shares more than 15 percent annually. Administration's bill is the weak disclosure services with other neighboring hospitals and The AFL-CIO has a long hist ory of sup­ provisions. The Medicare Cost Report (SSA what services are shared. porting efforts to achieve effective and equi­ Form 2552) is a potentially useful but baf­ We are concerned about another problem. table containment of health care costs. In fling mass of data covering some 33 pages. For-profit and voluntary nonprofit hospitals fact, the Health Security bill, which we sup­ The Report is unquestionably designed to should not be allowed to transfer their un­ port, contains the most stringent and effec­ meet the needs of fiscal intermediaries, but derinsured patients--those without Medicare, tive cost controls of any national health in­ it is of limited use to consumers and hospital Medicaid or private insurance or with mini­ surance proposal. employees. It fails to list specific administra­ mal private insurance-on public hospitals. The President's program, however, will only tive salary and major cost information on A ceiling on hospital revenues will provide restrain and not stop the escalation in health such important areas as pathology and ra­ an incentive to private hospitals to accelerate care costs, for example there are no controls diology. In fact, only a trained hospital ac­ and expand such practices which already are over physician fees. countant could conceivably make good use of all too prevalent. · Union-negotiated health plans are under the Medicare Cost Report. We, therefore, recommend that R.R. 6575 extreme pressure to reduce benefits because As stated by President Meany, "the Presi­ contain strong provisions forbidding hospi­ of unacceptable extravagance in the hospital dent's propos::i.l also lacks adequate disclo­ tals to reduce their share of care of "unprofit­ industry. Waste, unnecessary hospitalization sure provisions of hospital finances and ex­ able" patients except within the context of and surgery, duplication of expensive hospi­ penses. For too long, hospitals have operated a coordinated and systematic community tal services and outlandish salaries and fees, under a veil of secrecy, despite the fact that health plan. Hospitals should be required to such as those paid to radiologists and pa­ tax dollars are a major source of hospital maintain their patient mix, bad debt ratio thologists, must be brought under control. income. Taxpayers have a right to know how and gross to net revenue ratio. Specifically, we endorse the Administra­ these funds are expended and we will urge Allowable cost reimbursement formulas tion's plan to limit capital expenditures for Congress to include adequate disclosure pro­ can be adjusted to reward hospitals which new hospitals and the proposed efforts to en­ visions in the final b111.'' continue to serve the poor and underinsured courage Health Maintenance Organizations. Unfortunately, R.R. 6575 does not meet the and penalize those which transfer such pa­ In his message, the President recognizes President's commitment for adequate dis­ tients onto public hospitals. Section 126 at­ that hospital workers have not been respon­ closure. Therefore, with respect to disclo­ tempts to meet this problem by allowing an sible for hospital cost inflation and proposes sure, we urge the following: aggrieved hospital to file a complaint with adjustments in the containment formula. for 17254 EXTENSIONS OF REMARKS June 1, 1977 wage increases for nonsupervisory hospital l\rEETINGS SCHEDULED dom of Saudla. Arabia.. and to hold employees. JUNE 3 hearings on an agreement with Canada. If states are permitted to operate their own 11:00 a.m. concerning· the transit oil pipeline hospital cost containment programs, as the Joint Economic (Exec. F, 95th Cong., 1st sess.), and the President proposes, their programs must To hold hearings to receive testimony on Inter-American Treaty of Re\}iprocal meet all of the criteria of the federal pro­ the employment/unemployment situ­ Assistance (Exec. J., 94th Cong., 1st gram, including the provisions concerning ation in May. sess.). wage increases for hospital employees. We 1202 Dirksen Building 4221 Dirksen Building will ask Congress to make this explicit in any Governmental Affairs legislation. JUNE 6 Intergovernmental Relations Subcommit­ 9:00 a.m. tee The President's proposal also lacks ade­ Judiciary quate disclosure provisions of hospital fi­ To resume hearings on S. 600, the Regu­ Improvements in Judicial Machinery Sub- ' latory Reform Act of 1977. nances and expenses. For too long, hospitals committee have operated under a veil of secrecy, despite 6226 Dirksen Building the fact that· tak ·dollars are a major source To hold hearings on S. 1612 and S. 1613, Human Resources of hospital income. Taxpayers have a right to expand the jurisdiction of U.S. Health and Scientific Research Subcom­ to know how these funds are expended, and Magistrates. mittee we will urge Congress to include adequate 2228 Dirksen Building To hold hearings to evaluate information 9:30 a.m. upon which the FDA based its deci­ disclosure provisions in the final bill. Commerce, Science, and Transportation The President's message also outlines a sion to propose regulations banning To hold hearings on the nomination of the use of saccharin. $180 million program to extend benefits and Robert A. Frosch, to be Administrator expand availab111ty of comprehensive health 4232 Dirksen Building of NASA. Joint Economic services for low-income children, which the 5110 Dirksen Building AFL-CIO strongly supports. 10:00 a.m. Economic Growth and Stabilization Sub­ Further, we welcome the President's re­ Banking, Housing, and Urban Affairs committee newed commitment to developing a work­ To hold hearings on H.R. 5675, to au­ To hold hearings on economic develop­ able program of national health insurance. thorize the Treasury Department to ment in rural areas. We believe that the Health Security bill make short-term investments of any 1202 Dirksen Building presently pending in the Congress is such a portion of its excess operating cash Select Indian Affairs program and can truly contain health care balance. To continue oversight hearings on the costs and provide comprehensive health care 5302 Dirksen Building Indian Education Reform Act (P.L. 93- services to all Americans. Commerce, Science, and Transportation 638). Room to be announced APPENDIX B Communications Subcommittee To hold oversight hearings on the cable 10:30 a.m. Appropriations Average hourly earnings TV system. 235 Russell Building Transportation Subcommittee [Nonsupervisory employees] Select Indian Affairs To mark up proposed appropriations To hold oversight hearings on the In­ for fiscal year 1978 for the Department of Transportation. Total dian Education Reform Act (Public private Service Hospitals Law 93- 638). S-128, Capitol Room to be announced JUNE 8 2:00 p.m. 8:00 a.m. 1968 ------$2.85 $2.43 $2. 31 *Commerce, Science, and Transportation Agriculture, Nutrition, and Forestry !969 ------3. 04 2. 61 2.57 To hold hearings on the nomination of Agricultural Research and General Legis­ 1970 ------3.22 2.81 2.79 Alfred Edward Kahn, to be a member lation Subcommittee 1971 ------3.43 3.01 2.96 of the Civil Aeronautics Board. To hold hearings on proposed legisla­ 1972 ------3.65 3.40 3.08 5110 Dirksen Building lation to extend the authorization of 1973 ------3.92 3.46 3.22 JUNE 7 the Federal Insecticide, Fungicide, and 1974 ------4.22 3.76 3.45 8:30 a.m. Rodenticide Act. 1975 4.54 4.06 3.83 Until 10 :30 a.m. 324 Russell Building 1976 ------Finance ------4.87 4.36 4.18 Health Subcommittee Judiciary Dollar increase Improvements in Judicial Machinery Sub­ 1968-76 2.02 1.93 To hold hearings on S. 1470, Medicare ------1. 87 and Medicaid Administrative and Re­ committee imbursement Reform Act. To continue hearing~ on S. 1612 and Source: Bureau of Labor Statistics. 2221 Dirksen Building S. 1613, to expand the jurisdiction of 9:30 a.m. U.S. Magistrates. Energy and Natural Resources 2228 Dirksen Building To receive testimony on part D (natural 8:3o a.m. SENA TE COMMITTEE MEETINGS gas pricing) of S. 1460, National En­ Finance ergy Act. Health Subcommittee Title IV of Senate Resolution 4, agreed 3110 Dirksen Building To continue hearings on S. 1470, Medi­ to by the Senate on February 4, 1977, *Judiciary care and Medicaid Administrative and calls for establishment of a system for Criminal Laws and Procedures Subcom­ Reimbursement Reform Act. a computerized schedule of all meetings mittee 2221 Dirksen Building and hearings of Senate committees, sub­ To hold hearings on S. 1437, Criminal 9:00 a.m. committees, joint committees, and com­ Code Reform Act of 1977, and the fol­ Commerce, Science, and Transportation lowing criminal sentencing bills: S. 31, Science, Technology, and Space Subcom­ mittees of conference. This title requires 45, 181, 204, 260, 888, 979, and 1221. mittee all such committees to notify the Office 2228 Dirksen Building To hold hearings on S. 421, to establish of the Senate Daily Digest-designated Select Small Business a program to educate the public in by the Rules Committee-of the time, To resume hearings on alleged restric­ understanding climatic dynamics. place. and purpose of all meetings when tive and anticompetitive practices in 5100 Dirksen Building scheduled, and any cancellations or the eyeglass industry. 10:00 a.m. changes in meetings as they occur. 424 Russell Building Banking, Housing, and Urban Affairs 10:00 a .m. To continue hearings on S. 1397, to in­ As an interim procedure until the com­ Banking, Housing, and Urban Affairs crease from 16 to 19 the size of the puterization of this information becomes To hold hearings on S. 1397, to increase Board of Directors of FNMA. operational, the Office of the Senate from 16 to 19 the size of the Board of 5302 Dirksen Building Daily Digest will prepare this informa­ Directors of FNMA. Commerce, Science, and Transportation tion for printing in the Extensions of 5302 Dirksen Building To continue oversight hearings on the Remarks section of the CONGRESSIONAL Commerce, Science, and Transportation cable TV system. RECORD on Monday and Wednesday of Communications Subcommittee 235 Russell Building each week. To continue oversight hearings on the Energy and Natural Resources cable TV system. Parks and Recreation Subcommittee Anv changes in committee scheduling 253 Russell Building To hold hearings on S. 975, to improve will be indicated by placement of an Foreign Relations the administration of the National asterisk to the left of the name of the To consider the nomination of John c. Park System. unit conducting such meetings. West, to be Ambassador to the King- 3110 Dirksen Building Ju:ne 1, 1977 EXTENSIONS OF· REMARKS 17255 Energy and Natural Resources Energy and Natural Resources labor, national security, etc., in the Energy Research and Development Sub­ Energy Research and Development Sub­ current and future internatfonal flow committee committee of information. To receive testimony on proposed legis­ To hold hearings on S. 1432, proposed 4221 Dirksen Building lation authorizing funds for fiscal year Nuclear Non-Proliferation Act of 1977. JUNE 13 1978 for nuclear programs of ERDA. 6226 Dirksen Building 9:30 a.m. Room to be announced 10:00 a.m. Commerce, Science, and Transportation Foreign Relations Energy and Natural Resources Science, Technology, and Space Subcom­ International Operations Subcommittee Energy Production and Supply Subcom­ mittee To hold oversight hearings on the role of mittee To resume hearings on S. 657, to estab­ the media, business, banking, labor, To hold oversight hearings on strategic lish an Earth Resources and Environ­ national security, etc. in the current petroleum reserves. mental Information System. and future international flow of in­ 3110 Dirksen Building 235 Russell Building formation. Foreign Relations Finance 4221 Dirksen Building International Operations Subcommittee Taxation and Debt Management Subcom­ Governmenhl Affairs To continue oversight hearings on the mittee Intergovernmental Relations Subcommit­ role of the media, business, banking, To receive testimony on proposals which tee labor, national security, etc., in the seek to encourage economic growth To continue hearings on S. 600, the Reg­ current and future international fiow and employment. ulatory Reform Act of 1977. of information. 2221 Dirksen Building 6226 Dirksen Building 4221 Dirksen Building 10:00 a.m. Human Resources Governmental Affairs Health and Scientific Research Subcom­ Reports, Accounting, and Management Banking, Housing, and Urban Affairs mittee Subcommittee To hold hearings on S. 1594 and H.R. To hold oversight hearings on environ­ To resume hearings to review the proc­ 5959, to revise and extend the Renego­ mental toxins in mother's milk. esses by which accounting and audit­ tiation Act of 1951. Until 12:30 p.m. 4232 Dirksen Building ing practices and procedures, pro­ 5302 Dirksen Building Judiciary mulgated or approved by the Federal Energy and Natural Resources Criminal Laws and Procedures Subcom­ Government, are established. To resume hearings on part D (natural mittee 6202 Dirltsen Building gas pricing) of S. 1469, National En­ To continue hearings on S. 1437, Crimi­ Judiciary ergy Act. nal Code Reform Act of 1977, and the Criminal Laws and Procedures Subcom­ 3110 Dirksen Building following criminal sentencing bills: S. mittee Governmental Affairs 31, 45, 181, 204, 260, 888, 979, and 1221. To continue hearings on S. 1437, Crimi­ Reports, Accounting, and Management 2228 Dil•ksen Building nal Code Reform Act of 1977, and the Subcommittee Joint Economic following criminal sentencing b111s: To resume hearings to review the proc­ To hold hearings to review economic S. 31, 45, 181, 204, 260, 888, 979, and esses by which accounting and audit­ conditions, and to discuss the future 1221. ing practices and procedures, promul­ outlook. 2228 Dirksen Building gated or approved by the Federal 6202 Dirksen Building Joint Economic Government, are established. Select Small Business To continue hearings to review economic 6226 Dirksen Building To hold hearings on alleged late pay­ conditions, and to discuss the future Judiciary ments by the Federal Government to outlook. Criminal Laws and Procedures Subcom­ small business contractors. 1202 Dirksen Building mittee 424 Dirksen Building Select Small Business To hold hearings on S. 1566, Foreign 10:30a.m. To continue hearings on alleged late pay­ Intelligence Surveillance Act of 1977. Judiciary ments by the Federal Government to 2228 Dirksen Building To hold hearings on the nomination of small business contractors. JUNE 14 Finis E. Cowan, of Texas, to be U.S. 424 Dirksen Building 9:30 a .m. district judge for the southern district JUNE 10 Commerce, Science, and Transportation of Texas. 8:30 a.m. Science, Technology, and Space Subcom­ 2228 Dirksen Building Finance mittee 2:30p.m. Hea.lth Subcommittee To continue hearings on S. 657, to es­ Foreign Relations To continue hearings on S. 1470, Medi­ tablish an Earth Resources and En­ Arms Control, Oceans, and International care and Medicaid Administrative vironmental Information System. Environment Subcommittee and Reimbursement Reform Act. 5110 Dirksen Building To resume hearings on S. 897 and 1432, 2221 Dirksen Building Finance proposed Nuclear Nonproliferation 9:00 a.m. Taxation and Debt Management Subcom­ Act. Commerce, Science, and Transportation mittee 4221 Dirksen Building Science, Technology, and Space Subcom­ To receive testimony on proposals which JUNE 9 mittee seek to encourage economic growth 8 :00 a.m. To continue hearings on S. 421, to estab­ and employment. Agriculture, Nutrition, and Forestry lish a program to educate the public 2221 Dirksen Building Agricultural Research and General Legis­ in understanding climatic dynamics. Select Small Business lation Subcommittee 5110 Dirksen Building Monopoly and Anticompetitive Activitif'..S To continue hearings on proposed legis­ Judiciary Subcommittee lation to extend the authorization of Improvements in Judicial Machinery Sub­ To hold hearings on the safety and the Federal Insecticide, Fungicide, and committee effectiveness of over the counter Rodenticide Act. To continue hearings on S. 1612 and S. sleepaids. Until 10: 30 a .m. 324 Russell Building 1613, to expand the jurisdiction of U.S. 6202 Dirksen Building 8 :30 a.m. Magistrates. lO:OOa.m. Finance 2228 Dirksen Building Agriculture, Nutrition, and Forestry Health Subcommittee 9:30 a.m. Rural Development Subcommittee To continue hearings on S. 1470, Medi­ Human Resources To hold oversight hearings on the im­ care and Medicaid Administrative and Health and Scientific Research Subcom­ plementation of the Rural Develop­ Reimbursement Reform Act. mittee ment Act of 1972. 2221 Dirksen Building To continue oversight hearings on en­ 322 Russell Building 9:00 a.m. vironmental toxins in mother's milk, Banking, Housing, and Urban Affairs Commerce, Science, and Transportation Until noon 4232 Dirksen Building Science, Technology, and Space Subcom­ To continue hearings on S. 1594 and mittee. 10:00 a.m. H.R. 5959, to revise and extend the To continue hearings on S. 421, to estab­ Energy and Natural Resources Renegotiation Act of 1951. 5302 Dirksen Building lish a program to educate the public Energy Production and Supply Subcom­ in understanding climatic dynamics. mittee Energy and Natural Resources 5110 Dirksen Building To continue oversight hearings on stra­ To continue hearings on part D (natural 9:30 a.m. tegic petroleum reserves. gas pricing) of S. 1469, National En- Banking, Housing, and Urban Affairs 3110 Dirksen Building ergy Act. To hold hearings on the nomination of Foreign Relations 3110 Dirksen Building John Heimann, to be Comptroller of International Operations Subcommittee Governmental Affairs Currency. To continue oversight hearings on the Energy, Nuclear Proliferation, and Federal 5302 Dirksen Building role of the media, business, banking, Services Subcommittee 17256 EXTENSIONS OF REMARKS June 1, 1977 To resume hearings on a report of the To resume hearings on S. 1391, Hospital To resume hearings on the safety and Commission on Postal Service. Cost Containment Act of 1977. efficiencies of over the counter sleep­ 3302 Dirksen Building Until 1 p.m. 4232 Dirksen Building aids. Joint Economic 2:30p.m. 6202 Dirksen Building Economic Growth and Stabilization Sub­ Foreign Relations 10:00 a.m. committee Arms Control, Oceans, and International Banking, Housing, and Urban Affairs To resume hearings on economic devel­ Environmental Subcommittee Financial Institutions Subcommittee opment in rural areas. To resume hearings on S. 897 and 1432, To continue hearings on proposed legis­ 1202 Dirksen Building proposed Nuclear Nonproliferation Act. lation on financial institution reform. Judiciary 4221 Dirksen Building 5302 Dirksen Building Criminal Laws and Procedures Subcom­ JUNE 17 Judiciary mittee 9:00 a.m. Criminal Laws and Procedures SUbcom­ To continue hearings on S. 1566, Foreign Finance mittee Intelligence Surveillance Act of 1977. Taxation and Debt Management Subcom­ To continue hearings on S. 1437, Criminal 2228 Dirksen Building mittee Code Reform Act of 1977, and the fol­ JUNE 15 To hold hearings on S. 1538, proposing lowing criminal sentencing bills: S. 9:30 a.m. reform in the administration of the 31, 45, 181, 204, 260, 888, 979, and 1221. Commerce, Science, and Transportation black lung benefits program. 2228 Dirksen Building Science, Technology, and Space Subcom­ 2221 Dirksen Building JUNE 22 mittee 9:30 a.m. 9:00 a.m. To continue hearings on S. 657, to Human Resources Energy and Natural Resources establish an Earth Resources and En­ Health and Scientific Research Subcom­ Energy Conservation and Regulation Sub­ vironmental Information System. mittee committee 235 Russell Building To continue hearings on S. 1391, Hospi­ To receive testimony on proposals em­ 10:00 a.m. tal Cost Containment Act of 1977. bodied in parts A, B, c. and G of s. Banking, Housing, and Urban Affairs Until 12:30 p .m. 4332 Dirksen Building 1469, the National Energy Act. To mark up S. 1433, 895, 71, and 73, deal­ Veterans' Affairs 3110 Dirksen Building ing with Federal regulation and Health and Readjustment Subcommittee Vet erans' Affairs supervision of financial institutions. To hold oversight hearings on veterans' Health and Readjustment Subcommittee 5302 Dirksen Building employment-unemployment situation. To hold hearings on the effectiveness of Foreign Relations Until 12 :30 p .m. 6226 Dirksen Building VA programs on ment al health, alco­ To hold hearings on treaties with Mexico 10 a..m. hol and drug abuse, readjustment and Canada on prisoner exchanges Commerce, Science, and Transportation counseling, and health. (Exec. D and H, 95th Cong., 1st sess.). To continue oversight hearings on the Until 2 p.m. 6226 Dirksen Building 4221 Dirksen Building effects of radiation on humans, i.e., 9:30 a.m. Joint Economic health, safety, and environment. Human Resources Economic Growth and Stabilization Sub­ JUNE 20 Handicapped Subcommittee committee 9:30 a.m. To continue hearings on proposed ex­ To continue hearings on economic devel­ Human Resources tension of the Rehabilitation Act of opment in rural areas. Handicapped Subcommittee 1973 and Eductaion of the Handi­ 6226 Dirksen Building To hold hearings on proposed extension capped Acts. JUNE 16 of the Rehabilltation Act of 1973 and Until 1 p .m. 4232 Dirksen Building 9:00 a.m. Education of the Handicapped Acts. Select on Nutrition and Human Needs Veterans' Affairs Until 1 p.m. 4332 Dirksen Building To told hearings on nutrition as it re­ Compensation and Pension Subcommittee 10:00 a .m. lates to mental health and develop~ To hold heraings on proposed increases Banking, Housing, and Urban Affairs ment. in veterans' pensions. Financial Institutions Subcommittee Until 1 p.m. 6202 Dirksen Buildinr 6226 Dirksen Bullding To hold hearings on proposed legislation 10:00 a.m. 10:00 a.m. on financial institution reform. Banking, Housing, and Urban Affairs Agriculture, Nutrition, and Forestry 5302 Dirksen Building Financial Institutions Subcommittee Rural Development Subcommittee Energy and Natural Resources To continue hearings on proposed legis­ To continue oversight hearings on the To resume hearings on part D (natural lation on financial institu t ion reform. implementation of the Rural Devel­ gas pricing) of S. 1469, National En­ 5302 Dirksen Building opment Act of 1972. ergy Act. Judiciary 322 Russell Building 3110 Dirksen Building Constitution Subcommittee Commerce, Science, and Transportation Judiciary To hold hearings on S. 1393, to give sta­ To hold oversight hearings on the effects Criminal Laws and Procedures Subcommit­ tutory authority to the Justice De­ of radiation on humans, Le., health, tee partment to !nit.late suit to enforce safety, and environment. To resume hearings on S. 1437, Crill'...inal constitutional and other federally 5100 Dirksen Building Code Reform Act of 1977, and t he fol­ guaranteed rights of institutionalized Commerce, Science, and Transportation lowing criminal sentencing bills: S. 31, persons. Surface Transportation Subcommittee 45, 181, 204, 260, 888, 979, an d 1221. 2228 Dirksen Building To hold hearings on general conditions 2228 Dirksen Bu ilding Joint Economic of the intercity motorbus industry Subcommittee on Economic Growth and JUNE 21 Stabilization and suggestions for increased rider­ 9:00 a .m. ship. To hold hearings to receive testimony Energy and Natural Resources from public pollsters on the current 235 Russell Building Energy Conservation and Regulation Sub­ Energy and Natural Resources committee status of and future conditions affect­ Energy Production and Supply Subcom­ ing the economy. To receive testimony on proposals em­ 1202 Dirksen Building mittee bodied in parts A. B, C, and G of S. To continue markup of s. 977, to con­ 1469, the National Energy Act. JUNE 23 serve gas and oil by fostering in­ 3110 Dirksen Building 10 :00 a.m. creased utilization of coal in electric 9:30 a.m. Banking, Housing, and Urban Affairs generating facilities and in major in­ Human Resources Financial Institutions Subcommittee dustrial installations. Handicapped Subcommittee To continue hearings on proposed legis­ 3110 Dirksen Building To continue hearings on proposed ex­ lation on financial institution reform. Foreign Relations tension of the Rehabilitation Act of 5302 Dirksen Building To continue hearings on treaties with 1973 and Education of the Handi­ Commerce, Science, and Transportation Mexico and Canada on prisoner ex­ capped Acts. Communications Subcommittee changes (Exec. D and H, 95th Cong., Until 1 p.m. 4232 Dirksen Building To hold hearings on S. 1547, to assure 1st sess.). Human Resources that all those providing communica­ 4221 Dirksen Building Health and Scientific Research Subcom­ tions services are able to use existing Select Small Business mittee communications space on poles which To hold hearings on S. 1526, to establish To hold hearings to evaluate informa­ are owned by regulated utilities, and the position of Associate Administra­ tion upon which the FDA based its to simplify FCC forfeiture provisions. tor for Women's Business Enterprise. decision to propose regulations ban­ 235 Russell Building 424 Russell Building ning the use of saccharin. Energy and Natural Resources 11 :00 a.m. Until noon 1202 Dirksen Building To consider pending calendar business. Human Resources Select Small Business 3110 Dirksen Building Health and Scientific Research Subcom­ Monopoly and Anticompetitive Activities Judiciary mittee Subcommittee Antitrust and Monopoly Subcommittee June 2, 1977 CONGRESSIONAL RECORD-HOUSE 17257 To hold hearings on the President's pro­ JUNE 29 Science, Technology, and Space Subcom­ posed energy programs. 9:00 a.m. mittee 2228 Dirksen Building Veterans' Affairs To receive a report from the National Health and Readjustment Subcommittee Commission on Supplies and Shortages JUNE 24 To resume hearings on proposed in­ on materials policy research and. de­ 9:00 a.m. creases in rates of veterans' education velopment. Veterans' Affairs benefits. 5110 Dirksen Building Health and Readjustment Subcommittee Until 2 p.m. 6226 Dirksen Building Human Resources To hold hearings on proposed increases 10:00 a.m. Health and Scientific Research Subcom­ in rates of veterans' education bene­ Banking, Housing, and Urban Affairs mittee fits. Consumer Affairs Subcommittee To hold oversight hearings on the cost of Until 2 p.m. 6226 Dirksen Bulleting To continue hearings on legislation to drugs. 10:00 a.m. amend the Truth in Lending Act, in­ Until noon 4232 Dirksen Building Commerce, Science. and Transportation cluding S. 1312 and S. 1501. 10:00 a.m. Communications Subcommittee 5302 Dirksen Building Foreign Relations To continue hearings on S. 1547, to as­ Commerce, Science, and Transportation To review the operation and effective­ sure that all those providing commu­ To continue oversight hearings on the ness of the War Powers Resolution of nications services are able to use ex­ effects of radiation on humans, i.e., 1973. isting communi:!ations space on poles health, safety, and environment. 4221 Dirksen Building which are owned by regulated utilities, 5110 Dirksen Building JULY 15 and to simplify FCC forfeiture pro- Judiciary 10:00 a.m. visions. Improvements in Judicial Machinery Sub­ Foreign Relations 235 Russell Bulleting committee To review the operation and effective­ JUNE 27 To continue hearings on the jurisdiction ness of the War Powers Resolution of 9:30 a.m. of U.S. Magistrates. 1973. Veterans' Affairs 2228 Dirksen Building 4221 Dirksen Building Health and Readjustment Subcommittee JUNE 30 To hold hearings on proposed legislation JULY 19 9:00 a.m. 9:30 a.m. to amend the Veterans' Physician and Veterans' Affairs Dentists' Pay Comparability Act. Housing, Insurance, and Cemeteries Sub· Commerce, Science, and Transportation Until noon 6226 Dirksen Building committee Science, Technology, and Space Subcom­ Banking, Housing, and Urban Affairs To continue hearings on S. 718, to pro­ mittee Consumer Affairs Subcommittee vide veterans with certain cost infor­ To review a report from the National To hold hearings on legislation to amend mation relating to the conversion of Commission on Supplies and Shortages the Truth in Lending Act, including Government-supervised insurance to on materials policy research and de­ S. 1312 and S. 1501. individual life insurance policies. velopment. 5302 Dirksen Building 6226 Dirksen Building 1>110 Dirksen Building Commerce, Science, and Transportation 9:30 a.m. 10:00 a.m. To resume oversight hearings on the ef­ Select Small BusineEs Foreign Relations ;fects of radiation on humans, i.e., To resume hearings on S. 972, authoriz­ To hold hearings on the following five health, safety, and environment. ing the Small Business Administration tax treaties. Convention with Israel 5110 Dirksen Building to make grants to support the develop­ (Exec. C, 94th Cong., 2nd seEs.); Con­ vention with Egypt (Exec. D, 94th JUNE 28 ment and operation of small business development centers. Cong .. 2nd sess.); Convention with 9:00 a.m. 424 Russell Building the United Kingdom (Exec. K, 94th Veterans' Affairs Con., 2nd sess.); Convention with the Housing, Insurance, and Cemeteries Sub­ 10:00 a.m. Banking, Housing, and Urban Affairs Republic of Korea (Exec. P, 94th .committee Cong., 2nd sess.); and Convention To hold hearings on S. 718, to provide To mark up H.R. 5294, S. 918, and S. 1130, to amend the Consumer Protection Act with the Republic of the Phillipines veterans with certain cost information so as to prohibit abusive practices by (Exec. C, 9Sth Cong., 1st sess.). relating to the conversion of Gov­ independent debt collectors. 4221 Dirksen Building ernment-supervised insurance to in­ 5302 Dirksen Building dividual life insurance policies. JULY 20 6202 Dirksen Building JULY 12 10:00 a.m. 10:00 a.m. 9:30 a.m. Foreign Relations Banking, Housing, and Urban Affairs Human Resources Health and Scientific Research Subcom­ To hold hearings on the following five Consumer Affairs Subcommittee tax treaties. Convention with Israel To continue hearings on legislation to mittee (Exec. C, 94th Cong., 2nd sess.); Con­ amend the Truth in Lending Act, in­ To hold hearings to evaluate information vention with Egypt (Exec. D, 94th cluding S. 1312 and S. 1501. upon which the FDA based its decision Cong., 2nd Eess.); Convention with 5302 Dirksen Building to ban Laetrll from interstate com­ the United Kingdom (Exec. K, 94th Commerce, Science, and Transportation merce. Cong., 2nd sess.); Convention with the To continue oversight hearings on the Until noon 4232 Dirksen Building Republic of Korea (Exec. P, 94th efl"ects of radiation on humans, i.e., 10:00 a.m. Cong., 2nd sess.); and Convention health, safety, and environment. Foreign Relations with the Republic of the Philippines 5110 Dirksen Building To hold hearings on the Vienna Conven­ (Exec. C, 95th Cong., 1st sess.). tion on the Law of Treaties (Exec. L, Governmental Affairs (Exec. C, 95th Cong., 1st sess.). Energy, Nuclear Proliferation, and Federal 92d Cong., 1st sess.). 4221 Dirksen Building 4221 Dirksen BuildinP' Services Subcommittee JULY 13 JULY 26 To resume hearings on a report of the 10:00 a..m. Commission on Postal Service. 10:00 a.m. 3302 Dirksen Building Foreign Relations Foreign Relations Judiciary To review the operation and effectiveness To hold hearings on protocol to the Improvements in Judicial Machinery Sub­ of the War Powers Resolution of 1973. Convention on International Civil committee 4221 Dirksen Building Aviation (Exec. A. 95th Cong., 1st To resume hearin~s on the jurisdiction JULY 14 sess.), and two related protocols of U.S. Magistrates. 9:30 a.m. (Exec. B, 95th Congress, 1st sess.) . 2228 Dirksen Building Commerce, Science, and Transportation 4221 Dirksen Building

HOUSE OF REPRESENTATIVES-Thursday, June 2, 1977

The House met at 10 o'clock a.m. Those who trust in God are Zike Mount to the Speaker and the Members who de­ Father John Putka, S.M., Covington Zion, unshakable, standing forever.­ liberate here the wisdom to sincerely Catholic High School, Covington, Ky., Psalms 125: 1. discern Your divine will in all that they offered the following prayer: do, so that they may effectively govern This House has proclaimed its trust in Your people according to Your truth. Our Father, You have assured us You by causing to be engraved over its We ask this through Jesus Christ, Your through Your Psalmist that- dais the motto "In God we trust." Grant Son and our Lord. Amen.