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4012 EXTENSIONS OF REMARKS February 24, 1987 EXTENSIONS OF REMARKS THE HIGH TECHNOLOGY TRADE because American producers cannot guaran­ "the U.S. should seek more forcefully to PROMOTION ACT tee delivery. This ominous trend translates . . . reduce controls on exports to countries into lost sales and lost profits-profits that are with whom the U.S. shares common nation­ HON. LES AuCOIN needed in order for them to be plowed back al-security objectives". into research and development. In October, 1986, a report prepared for OF OREGON the Joint Economic Committee concluded This is a prescription for a national security IN THE HOUSE OF REPRESENTATIVES that "U.S. controls and procedures suffi­ disaster. ciently differ from other COCOM countries Tuesday, February 24, 198 7 All we are saying today is, if the Congress in ways that place U.S. high-technology in­ Mr. AuCOIN. Mr. Speaker, a few weeks ago, and the administration are serious about dustries at a competitive disadvantage rela­ the National Academy of Sciences released a making America competitive again, let's look tive to other COCOM-headquartered firms report documenting how U.S. export control in our own backyard first for the problems. in international sales." They also warned laws have cost the U.S. high-technology in­ That's what this bill does and we look forward that "export controls are having an increas­ dustry $9.3 billion in profits and 188,000 jobs. to its passage. ingly negative effect over time as relative Following is a detailed summary of this leg­ improvements in foreign technology avail­ The report prescribed several remedies to ability continue and as foreign customers' help get the industry back on its feet again. islation: sensitivity to U.S. export controls in­ Today, Congressman FRENZEL and I propose WHAT'S WRONG WITH OUR EXPORT CONTROL creases." to fill that prescription. LAws? The most devastating indictment of the The bill we are introducing today, The High While the U.S. trade deficit has been in­ U.S. export control system, however, was re­ Technology Trade Promotion Act, rests on creasing every year, the performance of the cently presented by the Panel on the several presumptions: U.S. high technology industry has been gen­ Impact of National Security Controls on erally positive in recent years. In 1980, for By eliminating the requirement for licenses International Technology transfer. Among example, the industry had a $27 billion others, this panel included: Lew Allen on exports to our allies, we are acknowledging trade surplus while our overall trade deficit (chairman), former Chief of Staff for the that our friends share the same national secu­ was approximately $39 billion. But there are U.S. Air Force and former Director of the rity concerns as we do; ominous clouds on the horizon. In 1985 the National Security Agency; Alexander H. By streamlining the foreign availability test, surplus for the high tech industry was down Flax, former Ass't Secretary of the Air we are admitting that it makes no sense to to $4 billion. Early indications show that in Force for R&D; John S. Foster, Jr., former control items that are legally available from 1986 the industry will post its first-ever Director of Defense Research and Engineer­ trade deficit. other exporting countries; ing; B.R. Inman, former Deputy Director The effects of the strong U.S. dollar and for the Central Intelligence Agency and And by eliminating the redundant review of the sourcing of U.S. components in regions licenses, we are insuring that the Government Melvin R. Laird, former Secretary of De­ such as Southeast Asia have contributed to fense. will have more time and more resources to the decline in the competitive position of This report, performed under the auspices review truly sensitive exports. the U.S. high tech industry. But there's now ample evidence that shows that the U.S. of the National Academy of Sciences, con­ We are introducing this bill because the sad cluded that the economic costs to the U.S. fact is that, despite all of the current talk government itself-under the guise of our export control laws-has contributed to the associated with export controls in 1985 was about making America competitive again, our decline of this industry. "on the order of $9.3 billion". And the own Government is imposing trade barrriers We believe it is time to seriously re-exam­ report noted that this was a very conserva­ that make it nearly impossible for the U.S. ine our export control laws and to consider tive estimate since it does not cover all as­ high-technology industry to compete interna­ making significant rev1s1ons that will pects of economic costs, and it only applies tionally. streamline the license application process. to a subset of the potential scope of busi­ And our position is supported by several sig­ ness activity influenced by U.S. export con­ The current export license system is a Rube trols. Associated just with lost U.S. exports Goldberg-like contraption that causes confu­ nificant studies that have been issued in the last few years on this issue. was a reduction in U.S. employment of sion, frustration, and, ultimately, lost sales and The first major report was published in 188,000 jobs. The report went on to say that lost profits. The reforms in this bill will curtail 1982 by the General Accounting Office. En­ if they had calculated the overall impact on the redtape and bring some sanity to this titled "Export Control Regulation Could Be the aggregate U.S. economy of the value of system. More importantly, it will give American Reduced Without Affecting National Secu­ lost export sales and the reduced R&D exporters the chance to get their products into rity", the report concluded that our Govern­ effort, the associated loss for the U.S. 1985 the world marketplace as fast as their foreign ment required export licenses for more GNP would be $17.1 billion. items than was necessary to protect our na­ Meanwhile, U.S. firms are currently competitors do now. spending approximately $500 million a year Inevitably, there will be those who will say tional security. This resulted in "a licensing system characterized more as a paper exer­ on export administration activities. A lot of that, by reducing the scope of our export . li­ cise than as an inshument of control." The these activities revolve around trying to ex­ cense system, we will be undermining national GAO estimated that export · controls cost pedite the processing of licenses. Delays in security. But the truth of the matter is that our the high tech industry about $6.1 billion a processing are still a major .problem. Our ex­ export control laws have actually made us year. porters cannot guarantee to a would-be cus­ less secure. Let me explain. In the summer of 1985, the Georgetown tomer when a shipment will arrive, if ever. I serve on the Defense Appropriations Sub­ Center for Strategic and International Stud­ And shipping delays impose immediate fi­ nancial costs. When a product is available committee. And I'm here to state that Ameri­ ies, in a report entitled "Securing Techno­ logical Advantage: Balancing Export Con­ but cannot be shipped on receipt of an ca's security edge depends on our ongoing trols and Innovation", found that "the U.S. order, warehousing and other carrying costs advantage in technology. The only way we is endeavoring to restrict exports of a wide are incurred. More expensive means of can hope to retain a competitive edge over range of finished products and transfers of transportation may need to be used to make our adversaries is by encouraging industrial in­ data having greater and lesser military utili­ up for the delay in obtaining a license, and novation, by freeing the creative juices of ty. The scope of current regulation is out­ the exporter may have to pay contract pen­ America's high-technology community. dated and cost ineffective". alties to the purchaser and to subcontrac­ Unfortunately, our export control laws have In January, 1986 a report by the Business­ tors who supply components and assemblies. Higher Education Forum entitled "Export Average expenditures are $21,000 by small put a straitjacket on the high-technology in­ Controls: The Need To Balance National companies, $76,000 by medium-size compa­ dustry. The Government has set up barrier Objectives" found that "there is ample evi­ nies, and $649,000 by large companies. after barrier to the point where some countries dence that overly restrictive export controls In addition to the concrete loss of sales are now engaging in "de-Americanization," a are unproductive -0r, at times, counterpro­ and jobs, however, there are the intangible conscious effort not to buy American products ductive". They went on to recommend that effects of our export control system. And

• This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. February 24, 1987 EXTENSIONS OF REMARKS 4013 the NAS study found that our controls are, ble for G-COM-and therefore the license according to Commerce, 99% of the licenses with increasing frequency, causing Free application need not have been filed and re· that were denied were denied not because of World customers to turn to non-U.S. suppli­ viewed at all. national security concerns, but rather be­ ers. Their survey of businesses found that: If the exporter is fortunate enough deter­ cause of unreliable end-users. 52% reported lost sales primarily as a con­ mine if the product is eligible for G-COM, Our bill would eliminate the requirement sequence of export controls; the next problem he usually encounters is for licenses on products being shipped to 26% had business deals turned down by Free World narrow way that G-COM is available only lieve that there is no reason why we customers because of controls; for extremely low technologies. For the vast shouldn't treat our NATO allies the same 38% had existing customers actually ex­ majority of high tech companies, which are way as. we treat Canada. Shipments to our press a preference to shift to non-U.S. developing technologies at a very rapid friends to the North require no licenses, and sources of supply to avoid entanglement in pace, this makes G-COM virtually useless. Canada is just as much a diversion risk as U.S. controls. Generally speaking, the only COCOM our European allies. And we must remember Anecdotal evidence confirms the appre­ country that imposes a burdensome license that, if the product is considered a sensitive hension of foreign customers. For example, process on items being shipped within item that could pose a threat to the nation­ Dr. W. Dekker, President of Philips, on COCOM is the . While most of al security of our allies, or of the U.S., then April 15, 1986, in a speech at the Hague, the other countries require some paper­ the product would still need an export li­ warned that "European companies are being work, it is usually pro forma in nature. In cense to be shipped out of that COCOM compelled to obtain their components from addition, the U.S. unilaterally controls 27 country. One further note: the European elsewhere." Mr. T. Nicholson of British categories of technologies that are not in­ Community has already indicated that it Aerospace, has noted that "the vigour with cluded on the COCOM list. Among other would like to establish a "license-free" trade which U.S. re-export regulations are now COCOM members, only Canada and Germa­ zone by the year 1992. being imposed, together with the plethora ny maintain such unilateral national securi­ This bill does have several safeguards, of in-house controls and audits, the risk of ty export controls, but these are limited to however. First of all, it requires that the inadvertent non-compliance and possible certain kinds of chemical products and nu­ U.S. exporter notify the Dept. of Commerce cessation of supply from the U.S. source, clear items. According to the NAS study, when the shipment has been made. And we have all contributed towards a close re-eval­ "U.S. national security export controls en­ have delayed the effective date of this pro­ uation of our purchasing strategy." compass more products and technologies, vision for six months to give COCOM an op­ Export controls are particularly burden­ are generally more restrictive, and entail portunity to put together a mechanism that some on small businesses. While larger com­ more administrative delays and shipper un­ would establish a minimum "paper trail" on panies can afford to hire a full-time employ­ certainties than those of the other major such shipment. To address the issue of pos­ ee to decipher the export control system, CO COM countries". sible bad end-users, this bill would require smaller firms do not have that luxury. Un­ While many exporters concede that ship­ licenses on products being shipped to cer­ derstanding and applying the rules are diffi­ ments to COCOM are being processed more tain end-users that have been identified by cult tasks even for full-time, experienced, quickly than in the past, the NAS noted the Dept. of Commerce as unreliable. Final­ technically trained, English speaking export that "licensing delays and uncertainties ly, the bill would give the Dept. of Com- . licensing specialists. And these laws add to remain a problem for a significant percent­ merce the discretion, upon consulting with other difficulties small companies common­ age of export transactions". They found ly experience in marketing internationally­ that "in contrast to the time delays and the Congress, to re-impose license require­ difficulties in identifying markets, obtaining high level of uncertainty characterizing U.S. ments to COCOM countries that in their financing, and negotiating other hurdles to individual licensing, which conceivably dis­ opinion have engaged in a "pattern and foreign trade. courage some producers from exporting al­ practice" of noncompliance with COCOM Recently, the Dept. of Commerce an­ together or from exporting certain prod­ agreements. In other words, if a country nounced that it will be proposing legislation ucts, other COCOM country licensing sys­ abuses the new system, then we will take that would make a number of changes to tems are characterized by rapid processing, away the privilege of participating in our the export control laws that would help prior consultation between exporters and li­ COCOM-free license zone. streamline the process. We applaud that ini­ censing officials, and a high degree of pre­ A COCOM-free license zone is not a new tiative. However, based on early reports, dictability". idea. In 1983 the House of Representatives we're afraid that Commerce might be at­ Respondents to the NAS survey of U.S. passed legislation establishing a license-free tacking just the tip of the iceberg. We be­ businesses reported a 6-week average proc­ COCOM zone, but that provision was even­ lieve that more must be done. And that is essing time. In contrast, countries like tually watered down in conference commit­ why we are introducing the "High Technol­ Japan usually respond within 2 or 3 days on tee. Almost every industry group, including ogy Trade Production Act" today. such applications. And U.S. exporters note the National Association of Manufacturers, According to most estimates, approximate­ that they cannot even get orders placed the Business Roundtable, the Chamber of ly 40% ($62 billion> of all U.S. exports of with companies in friendly countries be­ Commerce, the American Electronics Asso­ nonmilitary manufactured good require an cause they cannot guarantee that they will ciation and scores of others, have supported export license. Almost 97% of these license need or get the required license. this concept in the past. applications are for products destined for To be competitive in the world market, Eliminating licenses on shipments to non-controlled countries (2% go to the PRC American companies have to be reliable sup­ COCOM is also an idea espoused by the and 1% to the East Bloc>. And U.S. exports pliers and they must operate under a series NAS study: "As a general policy the United on COCOM countries represent 60% of that of rules which are comparable with those States should seek to control only the total. that apply to our major trading partners. export of COCOM-proscribed items, and Several years ago, the Congress attempted This bill would eliminate the requirement then only when they are destined for a pro­ to deregulate certain low-technology items for licenses on exports destined for COCOM scribed country or for a non-COCOM coun­ destined for COCOM countries when it cre­ countries as long as they are subject to mul­ try that has not entered into an arrange­ ated a new "G-COM" procedure. The idea tilateral controls within COCOM. ment to protect items controlled by behind this was to permit U.S. high tech ex­ COCOM is the 16 member organization of COCOM". porters to ship certain products to our allies Western nations that constitutes the multi­ This bill would eliminate export license re­ without having to go through a tedious li­ lateral strategic control system for trade quirements on items destined for countries cense application and review process. with Communist countries. This group gets that are not part of COCOM, but that have Unfortunately, this new process is virtual­ together on a periodic basis to agree on· entered into "COCOM-like" agreements. ly useless. what items should require licenses when Such treatment would apply to any country The first problem is that the exporter has being exported from their countries. that enters into such agreements in the to first determine if his product is eligible The United States requires licenses on future. for G-COM treatment, i.e., whether or not most high technology products that are des­ There are several countries that are not it comes under the 'technology threshhold tined for countries in COCOM. Statistics officially members of COCOM that have level. Considering how difficult it is for ex­ show, however, that U.S. review of COCOM­ similar export control agreements with the porters to even understand the Controlled destined exports is generally a waste of U.S. . Commodity List 45. In FY 1984, they approved 32,315 li­ the same as COCOM nations. Again, the study found that 17% of all export licenses censes and denied 74. In FY '85, they ap­ same "safety valve" provisions as above processed by Commerce were actually eligi- proved 32,500 licenses and denied 49. And, would apply to these countries.

91--059 0-89-34 (Pt. 3) 4014 EXTENSIONS OF REMARKS February 24, 1987 This bill would eliminate the requirement actions of their citizens outside U.S. terri­ trols on products that fall within the "AEN for export licenses-on low technology prod­ tory. The extraterritorial extension of U.S. level", but continue them for higher tech­ ucts only-that are destined for the rest of controls is viewed by these governments as a nology goods. If such countries eventually the Free World. direct challenge to national sovereignty and enter into "COCOM-like" agreements, our Approximately 30% of our high tech trade a clear violation of international law. It is re-export controls will be eliminated. is destined for the rest of the Free World. seen as additional evidence of mistrust by This bill would eliminate the requirement Unfortunately, the competitive position of the U.S. of the capacity of these govern­ for licenses on re-exports within COCOM U.S. ·firms in the Free World is damaged by ments to further the West's common inter­ and from COCOM on products that contain the overcontrol of widely available, low est in preventing the diversion of militarily U.S. parts and components. technology goods. This imposes costs, uncer­ important goods and technologies. In fact, Under current law, if a foreign-made prod­ tainties and market restrictions that are not some of our closest allies have legislation uct contains any part or component that borne by foreign-based competitors. Prod- that is intended to block the United States' was obtained under an export license from . ucts below the U.S. AEN Level are already extraterritorial jurisdiction. the U.S., that company must apply for an available throughout the world. Yet, we still There is also a question as to the effec­ export license with the U.S. to re-export require our exporters to go through the bur­ tiveness of such controls. The NAS found that product. This is the case no matter densome and costly license process. And; as that "the U.S. approach is ineffective for how low the technolgy or how little the part the NAS study found, these controls are vir­ two reasons. First, if direct controls by the comprises the final product. By reference, tually useless. In a sample of over 1,000 li­ host government do not adequately deter this bill would also eliminate this require­ censes over a certain period of time in 1985, questionable sales, indirect controls asserted ment on foreign made products re-exported the NAS found that no AEN level licenses from a considerable distance are unlikely to within COCOM and from COCOM. has been denied. There's no reason why our be any more effective. Second, because the This bill would eliminate the requirement exporters shouldn't get "in on the action" COCOM countries are not merely conduits for licenses on re-exports from other Free as fast as their competitors. This same lan­ of.U.S. goods and technology but the source World countries if the final product con­ guage was passed by the House last year in of equally sophisticated items of interest to tained 35% or less U.S. parts and compo­ H.R. 4800 and is incorporated in H.R. 3. the Soviet bloc, any policy that fails to ad­ nents. This bill would pennit the use of distribu­ dress directly the weaknesses of COCOM is This bill would require that if a product tion licenses for shipments to the People's self-deluding". made in the Free World was composed of Republic of China. Meanwhile, foreign compliance with U.S. 35% or less of U.S. parts and components, A distribution license, which is usually au­ restrictions appears to be lax. Foreign­ the product would not require a re-export li­ thorized for 2 years, permits an approved owned businesses in COCOM countries cense from the United States. If that coun­ U.S. exporter to ship unlimited quantities of often ignore the requirement to seek U.S. try eventually entered into a COCOM-like specified commodities to approved distribu­ authorization to reexport, especially when agreement, the re-export requirement would tors. the U.S. content has been incorporated agree. Builders' Ass'n highlighted the problem on into the final product. This bill would eliminate the requirement 4/10/86 when he said: "We·can no longer As the NAS study noted, "Several ele­ for licenses on re-exports within COCOM afford to ignore the fact that more than ments of U.S. national security export con­ and from COCOM (and it would extend the one-third of the world machine tool market, trols, especially the reqirement for re-export same treatment to countries with "COCOM­ outside the U.S .. lies in Communist Bloc na­ authorization, are having an increasingly like" arrangements). tions. Certainly, the industry's foreign com­ corrosive effect on relations with many Anytime a company in a COCOM country petition has recognized the opportunities NATO countries and on other close bilateral wants to re-ship an item, they· should not presented by the Soviet market". relationships. They signal U.S. mistrust of have to come back to the United States for This bill would clarify that the foreign the will and capacity of allies to control the permission. Any products that are of a high availability test can be used if the exporter flow of sensitive technology to the Soviet tech nature will still have to go through can prove that the item is available in a bloc." The American Electronics Association that country's own license process. This bill Western country in which there are no re­ has stated that "U.S. reexport controls un­ eliminates the re-export license requirement strictions on exports to the Soviet bloc. dermine cooperation between the U.S. and on such shipments. The first problem with the foreign avail­ its COCOM allies, the only real way to This bill would eliminate the requirement ability test is that the administration has obtain meaningful controls. Moreover, they for licenses on re-export of low technology unilaterally focused on foreign availability damage U.S. credibility abroad since evasion products from other Free World countries. in East Bloc countries. For example, you is widespread and the U.S. has very little, On products that we ship to the Free can't claim foreign availability if you can some say no, enforcement ability." Without World, we believe there should be a differ­ prove the product is available in Europe or a doubt, U.S. re-export controls are the ent test. These newly developing countries Japan. You have to prove that it is in the most contentious and divisive of issues be­ have not yet established export control sys­ East Bloc country. tween the U.S. and its COCOM partners. tems that are as "tight" as those in The NAS study noted that "in those cases Legal scholars question the ethics of the COCOM. Because of this reality, there is in which there is foreign availability of U.S.­ extraterritorial reach of our export control more of a reason to extend some re-export controlled items, U.S. industry is unfairly iaws. Many . foreign governments do not controls to these countries. We.recommend, placed at a competitive disf).dvantage with agree that the U.S. has jurisdiction over the therefore, that we eliminate re-export con- respect to firms fr.om other 'Countries that February 24, 1987 EXTENSIONS OF REMARKS 4015 are not similarly constrained. This disadvan­ One of the major impediments to the use est concerns which might be associated with tage can lead to the erosion of competitive of the foreign availability test is interagency review of exception cases. market advantages previously enjoyed by disputes. Generally speaking, the Dept of This provision has been endorsed by sever­ U.S. industry and in some cases to the per­ Defense has proven to be an impediment to al industry associations. For example, David manent loss of U.S. markets". the resolution of such cases. According to Minnery, President, SAMA, has stated that The NAS study recommends that we de­ the NAS study, "The Dept of Defense has "Industry should be more directly involved control items "for which there is demon­ overstepped its legitimate statutory role of in the development of technical parameters strated foreign availability from any coun­ providing technical input to foreign avail­ and the negotiation of the CCL. This indus­ try that has not agreed to adhere to export ability determinations and has exercised de try involvement would ensure that the regu­ controls and for which this availability has facto veto authority by delaying the review lations reflect the capabilities of the equip­ not been eliminated within a reasonable of such determinations". ment and the realities of the marketplace". period of time through negotiated agree­ This bill would make clear that any deter­ Scott Kulicke of the Semiconductor Equip­ ments". mination of foreign availability does not re­ ment and Materials Institute recommended We agree. If a product is already legally quire the concurrence or approval of any on 4/10/86 that "There should be greater available in a western country, we should agency other than the Dept of Commerce. industry involvement in the development of not require our exporters to go through a However, the Dept of Defense would have technical parameters so that the regulations cumbersome export license process. This the option of bringing any disputes to the reflect the capabilities of the equipment language is in H.R. 3 and the recent an­ President if they believe there are national and the realities of the marketplace. This nouncement by the Dept of Commerce indi­ security reasons for denying the decontrol includes providing a greater opportunity for cates that they might be moving in this request. industry participation in the formulation of same direction. This bill would clariJy the definition of U.S. positions for COCOM and in regulatory This bill would require that the Dept of "comparable quality" in foreign availability rulemakings, for example by strengthening Commerce acknowledge receipt of the for" determinations. the TAC process". James Gray long-range plans while his brother "runs failure to direct sufficient resources to provide ANAHEIM.-William C. "Bill" Taormina the store." Their sister, Arlene, 33, also compensatory programs in the secondary doesn't like things that are "ugly" or works part time in the business. Taormina grades. The Congressional Research Service "yucky." So he buys them. declined to disclose the amount of business reports that according to data from the De­ He picks up neglected homes and shabby the company generates every year. partment of Education, only 1 percent of buildings. He has his eye on a run-down Described by friends and acquaintances as chapter 1 participants are in grade 12; 2 per­ motel that hasn't been painted in years, and a sincere, bright and benevolent business­ was thrilled when he closed the deal recent­ man, Taormina is driven by a philosophy in­ cent in grade 11; and 3 percent in grade 1O. ly on a crime-ridden bar called "Los stilled by his father: Give something back to CRS also reports that although there has Amigos.'' the community that helped nurture the been extensive effective schools research The 35-year-old trash company executive family's good fortune. concerning elementary schools, very little has even hired a private detective to climb the "There's 8.n old Italian saying," said Taor­ been done in the secondary schools. slopes of Taos, N.M., and find th~ owner of mina, whose grandparents were from 4020 EXTENSIONS OF REMARKS February 24, 1987 Naples. "You never pick the vine so that He has dabbled in local politics and likes vard. And he's not so sure Taormina will be you kill it. You pick a few grapes and let it to take all sides. During the November coun­ successful in trying to save the heritage of nurture. . . . It's the same with business cil election, Taormina campaigned for and downtown Anaheim. and profit. The guys who are trying to make contributed to the top five contenders and You can bring part of it back.... But to a fast buck, they're the ones in business one both mayoral candidates-winner Ben Bay, preserve an entire street of it, I'm not too day and gone the next. They don't have a because of his fiscal conservatism, and loser sure it's practical," Farano said. Farano also reputation." Irv Pickler, because "He's like an uncle to said he would prefer commercial develop­ A religious man who attends First Chris­ me." ment to the shelter. tian Church, in Anaheim, Taormina speaks But he doesn't like the bickering that's And Amin David, founder of Los Amigos of "an attitude of gratitude" and a belief been brewing lately over the council vacan­ de Orange County, worries that Taormina's that God has directed him to use his money cy left by new county Supervisor Don Roth. intent to remodel Anaheim Boulevard is an to help people. So he fired off a letter to each of the coun­ effort to rid the neighorhood of its Hispanic So when he decided to buy the Elks build­ cil members a few weeks ago suggesting flavor. "Who is he to set himself up as the ing, it seemed "perfect" to lease it to the they conduct an interview process and draw 'Anaheim Beautiful Committee?'" David Anaheim Human Services Network as a up a state of potential appointments. said. "What is gaudy to one person might be shelter for the homeless, he said. His inter­ Taormina's name was tossed around as a beautiful to another." est in housing the poor goes back more than possible appointment to fill the seat. And, Steve Ciko, owner of Joy Art Co. and the a year,· when he became involved with the though he doesn't rule out the possibility property at 312 N. Anaheim Blvd., said he Vision 2000 project, a city-sponsored confer­ that he might someday seek political office, thinks Taormina has gained too much ence that encouraged him and other com­ Taormina vowed never to serve on the City power since he started buying homes and munity leaders to look at the city's future. Council. businesses on the bouievard. While chairing the conference's Quality of "I don't ever, ever want to be interpreted "It seems like he wants to own the whole Life Committee, Taormina said, he learned as being insincere. If that happened to me, street. The whole thing doesn't make any about the need for a shelter and began at­ it'd break my heart," "Taormina said, ex­ sense," Ciko said. "He's got so much power tending meetings of the network. He figures plaining that people might think his com­ he can do what he wants in City Hall." the shelter project will fit perfectly into his munity work was simply a way to get on the Taormina isn't worried about the suspi­ vision for downtown Anaheim as a "conven­ council. "I can be more effective as a busi­ cion. "It'll take a little time before people tion center of help." nessman and citizen. I can rattle the cage realize what I'm trying to do," he said. "I'll . Taormina laments the lots overgrown from the outside. If I'm in the cage. I can't just have to sit down with them and ex­ with weeds, the chipped paint and the run­ do anything." plain." down bars that seem to have overtaken Like his father and the rest of the family, north Anaheim Boulevard "like cancer." Taormina eschews the flashiness of South­ Driving down the half-mile strip recently, ern California wealth, though he proudly EDWARD J. SCHNUCK he pointed to the rainbow-colored signs of wears a gold watch passed down from his Latino businesses. "There's no character to grandfather, drives a 1985 Chevrolet Ca­ this now," Taormina said. He likes the price and lives in the same home on Helena HON. BILL EMERSON Mexican grocery stores and bakeries, he Street that he his wife moved into 13 years OF MISSOURI added, but prefers more subdued signs. ago. IN THE HOUSE OF REPRESENTATIVES Taormina has been buying properties left "I put my money into things that have es­ and right in the neigborhood within the .sence," Taormina said "One of my trash Tuesday, February 24, 1987 past few years. He said he has about 20 lots trucks is worth more than a Rolls-Royce, Mr. EMERSON. Mr. Speaker, while we in worth about $2.5 million, including four and you can't even put trash in the trunk this great Nation are blessed with many out­ churches and a few houses and auto shops, (of a Rolls) ... God gives us this opportuni­ all within a mile of his home on Helena ty to do things. He puts money in our standing, selfless individuals, there are a Street. hands, like he puts a brush in the hand of a select few whose names become almost syn­ He is leading a group known as the North painter. What you do with that makes the onymous with civic leadership, public service, Anaheim Boulevard Property Owners Asso­ essence of what you are." and unselfish giving. ciation in a plan to restore the strip to a People who know him say they weren't On February 4, with the death of Mr. 1950s aura-down to Formica tabletops in surprised when he offered the City Council Edward J. Schnuck, of St. Louis, MO, we lost restaurants and contrasting pinks, blacks $24,252 to reimburse the city for the cost of one of those select few individuals. and chartreuses. applying for a state grant to establish the Epitomizing the American standard of suc­ "If you have all the pieces, everything shelter. Community leaders and city-offi­ comes together like they're supposed to," cials laud his involvement with civic cess through hard work, Mr. Schnuck began Taormina said. "But I don't like to make projects. his business career at the end of World War II mistakes. So I do a lot of thinking, a lot of Gilbert Melendez, director from 1980 to by opening a neighborhood grocery store­ praying, planning, wondering ... and talk­ 1985 of the George Washington Community and with other members of his family, he ing. You have to follow an idea through to Center, describes Taormina as ·~a super nice turned that small beginning into one of Mis­ the end to make sure it works." guy" who could always be counted on for souri's largest supermarket chains, Schnuck Alo~ with refurbished buildings, Taor­ his donations to the center's youth boxing Markets, Inc. mina said he also wants to revive the com­ program. Every year, Melendez said. Taor­ And as his business grew and prospered, munity feeling he relished as a boy. He mina would donate about $2,000 in trophies, hopes that with a refurbished downtown equipment and uniforms in support of the so did his leadership and participation in his that has a distinct period feel, similar to program and its efforts to teach troubled community's affairs. Holding positions that The Circle in Orange, the community will youth. ranged from president of the Herbert Hoover be drawn together. Bob Renzo, who has served with Taor­ Boys Club to Chairman of the Federal Re­ He is guided, in large part, by the inspira­ mina on the Central City Neighborhood serve Bank of St. Louis, Ed Schnuck seemed tion of his father, Dick Taormina, who Council, said he respects Taormina's "tre­ to have almost limitless time and energy to founded Anaheim Disposal Co. in 1949 and mendous amount of energy" and whole­ give for the betterment of his native St. Louis was known for his business success and work heartedly supports his efforts to upgrade and, indeed, of Missouri. in community organizations. Anaheim Boulevard. As testimony to his efforts on behalf of Shortly after his marriage in 1949, a job­ "I find him to be a person who really less Dick Taormina offered to pick up the cares about what he's doing, and he's willing countless good causes, Mr. Schnuck was the city's garbage. Though the elder Taormina to put himself and his money on the line." deserving recipient of many civic awards, in­ didn't own a truck, the city accepted. The Renzo said. "Fixing up Billy's in Award and the Brotherhood Award of the Na­ the city's trash ever since, and the City itself has improved the whole area." tional Conference of Christians and Jews. In Council never has bid out the $4 million There seem to be few, if any, people who addition, he was the only person ever to be contract, Anaheim Disposal now operates dislike Taormina. Yet there are some who honored as both the St. Louis Globe-Demo­ the largest garbage-transfer station on the don't agree with his plans for downtown crat's "Man of the Year" and the recipient of West Coast, Taormina said. · Anaheim. But rather than rest on the family's lau­ Floyd Farano, president of the Anaheim that newspaper's Humanities Award. rels, the elder son said he wants to be "a Chamber of Commerce, said he doesn't sup­ In short, Mr. Speaker, Edward J. Schnuck new pioneer, and continue to follow in my port Taormina's efforts to set up a shelter was a man whose life is a tremendous exam­ dad's footsteps." for the homeless on north Anaheim Boule- ple for us all-and whose death leaves us February 24, 1987 EXTENSIONS OF REMARKS 4021 with a great sense of loss. As we mourn his twice as likely to die in the first year of life cheered for the Mets. And you and I know passing, however, we .can also be heartened as a baby who is white? why they cheered for the Mets. by the knowledge that he leaves a legacy of After 200 years, where is justice in educa­ These are not just isolated cases of vio­ tion, when the doors to our colleges and uni­ lence and bigotry. As Dr. King taught us, excellence and civic leadership that will live versities are being closed and locked against "Injustice anywhere is a threat to justice ev­ for generations to come. minorities, when student aid is being erywhere." Racism feeds on itself. Each slashed, and when campuses even in our time an individual's rights are violated, it SENATOR KENNEDY PRAISES own Commonwealth are becoming battle­ becomes easier the next time for others to grounds of racism instead of peaceful ave­ lose their rights as well. Bad as they are, the MARTIN LUTHER KING nues to understanding? episodes of racism that mar the American After 200 years, where is economic justice, landscape today are nurturing worse inci­ HON. CHARLES 8. RANGEL when black Americans are condemned to dents tomorrow. OF NEW YORK the bottom of the pay scale, and govern­ There are those who counsel us to be ment abandons its commitment to affirma­ silent in this reactionary time, to look the IN THE HOUSE OF REPRESENTATIVES tive action in employment? other way, and to hope for the best. But I Tuesday, February 24, 198 7 After 200 years, where is justice in democ­ refuse to stand mute when liberty is denied Mr. RANGEL. Mr. Speaker, I would like to racy, when intransigent public officials who and justice is deferred. I reject the advice of fear the power of the black vote, speak with those who say civil rights can wait until bring the following sermon, delivered by Sena­ tongues of hypocrisy about ballot security, 1988, and that it is better politics today to tor KENNEDY at the Union United Methodist and conspire to prevent black citizens from neglect human needs. Church in Boston on January 18, to the atten­ casting their votes on election day? For the landscape I see has not been en­ tion of my colleagues. I share the Senator's The check of which Dr. King spoke-the tirely barren over the past six years. Each strong belief that now more than ever it is vi­ check for liberty and equality-was drawn individual can make a difference-and some tally important for us to pursLte Dr. King's on a bank account whose funds have been of us have tried. As my brother Robert Ken­ dream of freedom, justice, and equality for all withdrawn by national Administration that nedy told the students at Capetown in people. "Now is the time."! speaks platitudes about doing better but South Africa in 1966: persists in doing worse. "Each time a person stands up for an The remarks follow: The bankrupt policies of the Reagan Ad­ ideal, or acts to improve the lot of others, or REMARKS OF EDWARD M. KENNEDY, MARTIN ministration have spawned a national envi­ strikes out against injustice, he sends forth LUTHER KING, JR. HOLIDAY ronment that encourages discrimination and a tiny ripple of hope, and crossing each First, let me thank Reverend Stith for repudiates opportunity. The decade of the other from a million different centers of that warm introduction. 1980's has borne witness to an unconscion­ energy and daring, those ripples build a cur­ Two decades ago, the dreamer we honor able retreat from the steady advances in rent that can sweep down the mightiest this morning asked his own congregation to civil rights that have always been one of the walls of oppression and resistance." remember him as a drum major for justice, highest measures of our progress as a I am proud to stand here today as the a drum major for peace, a drum major for nation. sponsor of the Martin Luther King Holiday righteousness. The proud independence of the Civil Bill, the sponsor of the Voting Rights Act, Today, the community of Boston, and es­ Rights Commission has been dismantled and the sponsor of Fair Housing. pecially this church, are blessed because and destroyed, and open-minded idealistic I am proud to speak for legal services for Charles Stith is our drum major. Through leaders on the Commission have been re­ the poor, for school integration, and for the his work, the dream of Dr. King of racial placed by ideologues whose narrow-minded integrity of the federal courts. justice and full civil rights still lives. By his concerns are the antithesis of civil rights. I am proud to be the sponsor in this Con­ ministry, Reverend Stith is bringing all of Even the extension of the Voting Rights gress of the District of Columbia Statehood us closer to the day when Dr. King's great Act was jeopardized, in spite of the over­ Bill and the Equal Rights Amendment to dream finally comes true for our city, our whelming evidence that minorities are still the Constitution. Commonwealth, and our country. denied the constitutional right to vote for And I am proud to have sponsored the law At the historic March on Washington a the candidate of their choice. in the last Congress that established eco­ quarter century ago, Martin Luther King The Department of Justice has become an nomic sanctions against the Government of stood before a quarter million people assem­ anti-justice department. It has actively South Africa, over the veto of the President. bled at the memorial to our greatest Repub­ sought to terminate court decrees requiring In ways such as these, on the issue of full lican President. And on that famous day, affirmative action in employment, and it human liberty for the minority of Ameri­ Dr. King, heir of Abraham Lincoln, ad­ has encouraged white employees to oppose cans who are not white and the majority dressed the crowd in these words: affirmative action policies. who are women, I will never give up and I "We have come to our nation's Capitol to Candidates with demonstrated records of will never give in. cash a check. When the architects of our re­ racial insensitivity or even outright hostility When the timid say they fear even to try public wrote the magnificent words of the have been nominated as federal judges, in­ anymore, we reply that we still have a shin­ Constitution and the Declaration of Inde­ cluding even the Chief Justice of the United ing, powerful dream. When we hear a new pendence, they were signing a promissory States. version of the old refrain that speaks of note to which every American was to fall This abject retreat on civil rights at the gradualism, we reply: "What about Ameri­ heir. This note was a promise that all men highest level of government has exacted a canism?'' would be guaranteed the unalienable rights high price. Minority citizens have become And when we are told to wait for tomor­ of life, liberty, and the pursuit of happi­ targets of convenience for the fears and row and tomorrow and tomorrow, for the ness." frustration of other Americans seeking their next election or the next generation, we In the Declaration of Independence, the own education, their own employment, their reply, in the words of Martin Luther King Constitution, and the Bill of Rights, Ameri­ own economic security. I say to you, we from the Birmingham Jail: "Now is the ca's first patriots established a society based must categorically reject the insidious phi­ time." on the goals of liberty and justice for all. losophy of this Administration, that "If you I say to you, now is the time-now is The founders were not perfect, just as we are white, everything will be all right; but if always the time-to commit ourselves to the are not perfect today. But the genius they you are black-get back." dream of Dr. King. bequeathed to us was a form of government That attitude has spawned incidents of I ask you, when is the time for the right based on opportunity. racism that would have been unthinkable of every person who is able and willing to In the 200 years since then, we have sur­ ten years ago. The life of a young black man work to have a decent job? You and I know passed their aspirations beyond human is lost to the sudden violence of white teen­ the answer: Now is the time. measure and created a nation of unparal­ agers in Howard Beach. A black student at When is the time for the right of every leled power and influence. But measured The Citadel is threatened by white cadets young person to a decent education? Now is against the promise of America, we have dressed as Ku Klux Klansmen. A white man the time. also fallen short in ways that continue to in Kansas City, Missouri, attempts to force When is the time for the right of every plague us and divide us. a black family to move from the neighbor­ man, woman, and child in America to decent It is a national tragedy and a national dis­ hood by attacking their home five times housing and decent health care? Now is the grace that after 200 years of progress, the with guns and explosives. time. goal of racial justice now seems to be reced­ And here at home, at the University of When is the time to end apartheid in ing, not advancing. Massachusetts at Amherst, white students South Africa? Now is the time. After 200 years, where is justice in health respond to the World Series loss of the Red And finally, when is the time for the right care, when a newborn baby who is black is Sox by attacking fellow black students who of even the least among us to rise from the 4022 EXTENSIONS OF REMARKS February 24, 1987 shadow of poverty into the sunshine of lib­ dignity . . He was respected by all who knew If you go for the simpler things in life, erty? Now is the time. him and was an example of how someone like fishing or shopping or just plain night­ We need national leadership that is more from humble beginnings can achieve success life, 's got it all. committed to rights such as these in our in this great country. City promoters tout as the "wal­ own land and to full human rights around leye fishing capital of America" and as for the world. We must understand that our na­ Al Rawls leaves behind a great legacy for shopping, well, get this: You can do it right tional interest demands progress and justice all of us. He was a man of compassion and downtown. And there's lots of it. (And, pssst, for every citizen in America, and that our dedication, a man who will be missed by his more is coming.) And , a stretch of national ideals demand closer relations with friends, his community, and his loving family. industrial lowlands along the Cuyahoga the people of black Africa-not constructive near its junction with Lake Erie, is a trendy engagement with the apartheid regime of composite of dining, entertainment and at­ white South Africa. THE CITY FOR 1987 IS mosphere. We know that the path ahead will not be CLEVELAND! Cleveland is on the kind of roll that has easy. Change and progress never are. But its promoters gushing that it has more now is the time-and today is the day-to HON. LOUIS STOKES summer sunshine than Tampa or Houston reaffirm the goals of Martin Luther King and more yachts than San Diego and that, and make them our own. May his vision be OF OHIO because of its easy access to the St. Law­ our vision, his strength our strength, his IN THE HOUSE OF REPRESENTATIVES rence Seaway, Cleveland is closer to north­ struggle our struggle. In the words of Dr. Tuesday, February 24, 1987 ern European ports than either Boston or King's great letter in 1963 to his fellow cler­ New York. gymen, Mr. STOKES. Mr. Speaker, I submit for the You might as well face it, Bunky, Cleve­ "Let us all hope that the dark clouds of information, enlightenment, and entertainment land, long referred to only in punch lines, racial prejudice will soon pass away, that of my colleagues, an article which appeared in may be the City for 1987. Heck, maybe even the deep fog of misunderstanding will be the January 23, 1987, edition of the Cleveland for the rest of the decade. lifted from our fear-drenched communities, Plain Dealer which sings the praises of my Cleveland's in 'cause the mystery's out of and that in some not-too-distant tomorrow, city-Cleveland, OH: the bag: the radiant stars of love and brotherhood Last year, Pamela Brenner, 32, of Brenner will shine over our great nation with all of THE CITY FOR 1987 Is CLEVELAND! Tours in Hopkins, Mich., which is located their scintillating beauty."

91-059 0-89-35 {Pt. 3)