36714 EXTENSIONS OF REMARKS November 12, 1973 A. R. Keith Stroup, 2105 N Street NW., B. Credit Union National Association, Inc., B. Ashland Oil, Inc., P.O. Box 391, Ashland, Washington, D.C. 20037. 1617 Sherman Avenue, Madison Wis. Ky. 41101. B. National Organization for the Reform D. (6) $775.90. E. (9) $40.20. D. (6) $250. o! Marijuana. Laws, 1237 22d Street NW.. Washington, D.C. 20037. A. James A. Warren, 5500 Friendship Boule· A. Robert E. Williams, 1825 K Street NW ., D. (6) $450. vard, Chevy Chase, Md. 20015. Washington, D.C. 20006. B. REA Express, Inc., 219 East 42d Street, B. United Air Lines, P.O. Box 66100, Chi­ A. Sutherland, Asbill & Brennan, 1666 K New York, N.Y. 10017. cago, Til. 60666. Street NW., Washington, D.C. 20006. D. (6) $450. E. (9) $75. D. (6) $1,250. E. (9) $725.90. B. Retail Credit Co., P.O. Box 4081, Atlanta, Ga. 30302. A. George A. Watson, Suite 800, 1612 K A. Williams & King, 1620 I Street, NW., E . (9) $35. Street NW., Washington, D.C. 20006. Washington, D.C. 20009. B . The Ferroalloys Association, Suite 800, B. National Nutritional Foods Association, A. Gerald Toppen, 400 First Street NW ., 1612 K Street NW .• Washington, D.C. 20006. 7624 South Painter Avenue; Whittier, Calif. Washington, D.C. E. (9) $1,562.61. 90602. B. Brotherhood of Railway, Airline and D. (6) $2,500. E. (9) $329. Steamship Clerks, 6300 River Road, Rose­ A. Judy Waxman, 19036 Canadian Court, mont, Ill. 60018. Gaithersburg, Md. A. Frederick L. Williford, 10010 Green For­ E. (9) $140. B. Women's Lobby, Inc., 1345 G Street SE., est Drive, Adelphia, Md. Washington, D.C. 20003. B. National Federation of Independent A. J. P. Trainor, 400 First Street NW.~ E. (9) $30. Business, 921 Washington Building, 15th and Washington, D.C. 20001. New York Avenue, NW., Washington, D.C. B. Brotherhood of Railway, Airline and A. Fred Wegner, 1750 K Street NW., Suite 20005. Steamship Clerks, 6300 River Road, Rose­ 1190, Washington, D.C. 20006. E. (9) $2,688.61. mont, Ill. 60018. B. Retired Persons Services, Inc., 1750 K D. (6) $3,500. E. (9) $1,441.63. Street NW., Suite 1190, Washington, D.C. A. Wilmer, Cutler & Pickering, 900 17th 20006. St., NW., Washington, D .C. 20006. A. W. M. Trevarrow, 601 National Press E. (9) $10.50. B. Dealer Bank Association, P.O. Box 479, Building, Washington, D.C. 20004. Wall Street Station, New York, N.Y. 10005. B. American Motors Corp., 14250 Plymouth A. Janet H. Wegner, 1225 Connecticut Road, Detroit, Mich. 48232. Avenue NW., Washington, D.C. 20036. A. Wilmer, Cutler & Pickering, 900 17th D. (6) $3,750. E. (9) $137.50. B. American Association of Retired Per­ Street NW., Washington, D.C. 20006. sons/ National Retired Teachers Association, B. J. C. Penny Co, Inc., 1301 Avenue of the A. Trustees for Conservation, 251 Kearney 1225 Connecticut Avenue NW., Washington, Americas, New York, NY. 10019. Street, San Francisco, Calif. 94108. D.C. 20036. D. (6) $578.50. E. (9) $30.25. E. (9) $128.89. A. Bernard J. Welch, 1800 K Street NW., A. Earl Wilson, 400 First Street NW ., A. Joseph D. Tydings, 1120 Connecticut Washington, D.C. 20006. Washington, D.C. Avenue NW., Washington, D.C. 20036. B. Pan American World Airways, Inc., 1800 B. Brotherhood of Railway, Airline, and B. Potomac Electric Power Co., 1900 Penn­ K Street NW., Washington, D.C. 20006. Steamship Clerks, 6300 River Road, Rose­ sylvania Avenue NW., Washington, D.C. E. (9) $124.16. mont, Ill. 60018. 20006. E. (9) $140. D. (6) $261.36. A. Whaley, McCutchen, Blanton & Dent, 1414 Lady Street, Columbia, S.C. 29211. A. Women's Lobby, Inc., 1345 G Street SE., A. United Fresh Fruit and Vegetable Asso­ B. Motion Picture Association of Amer­ ·washington, D.C. 20003. ciation, 777 14th Street NW., Washington, ica, Inc., 1600 I Street NW., Washington, D.C. D. (6) $2,897. (9) $2,062.85. D.C. 20005. D. (6) $5,000. E. (9) $5,000. D. (6) $2,200.17. E. (9) $2,200.17. A. Burton C. Wood, 1625 L Street NW., Washington, D.C. 20036. A. Robert Y. Wheeler, Box 185, Tilden, Tex. B. National Association of Home Builders A. Veterans of World War I, USA, Inc., 916 78072. of the United States, 1625 L Street NW .• Prince Street, Alexandria, Va. 22314. B. Ernest G. Herman, 9538 Brighton Way, Washington, D.C. 20036. E. (9) $1,066.65. Beverly Hills, Calif. D. (6) $5,343.75. E. (9) $547.88.

A. Walter D. Vinyard, Jr., 1025 Connecticut A. Thomas E. Wheeler, 1425 K Street NW., A. Jack Yelverton, 1303 New Hampshire Avenue NW., Suite 515, Blake Building, Wash­ Suite 900, Washington, D.C. 20005. Avenue NW., Washington, D.C. 20036. ington, D.C. 20036. B. Grocery Manufacturers of America, Inc., B. Fleet Reserve Association, 1303 New B. American Insurance Association, 1025 Hampshire Avenue NW., Washington, D.C. Connecticut Avenue NW., Suite 515, Blake 1425 K Street NW., Suite 900, Washington, D.C. 20005. 20036. Building, Washington, D.C. 20036. E. (9) $24. D. (6) $1,500. E. (9) $250. A. Robert C. Zimmer, 1775 K Street NW ., Suite 220, Washington, D.C. 20006. A. Robert E. Wick, 1800 K Street NW., B. Massachusetts Consumer Bankers A. Wald, Harkrader & Ross, 1320 19th Washington, D.C. Street NW., Washington, D.C. 20036. Group. B. Pan American World Airways, 1800 K E. (9) $468.17. B. Ina Corp., 1600 Arch Street, Philadel­ Street NW., Washington, D.C. phia, Pa. 19101. E. (9) $94.20. A. John L. Zorack, 1709 New York Avenue NW., Washington, D.C. 20006. A. DeMelt E. Walker, 1730 Rhode Island A. Harry D. Williams, 1660 L Street NW ., B. Air Transport Association. Avenue NW., Washington, D.C. Suite 204-205, Washington, D.C. 20036. D . (6) $1,415. E. (9) $372.52.

EXTENSIONS OF REMARKS CONNECTICUT REALTOR OF THE tion in the Nation's Capital. I am happy honor by the Danbury Board of Realtors, YEAR to note that among those in attendance which had already chosen him as their are a number of realtors from Connecti­ realtor of the year. The requirements for HON. RONALD A. SARASIN cut and my own Fifth Distrtct. this award are established by the Na­ I would particularly like to call to my tional Association of Realtors and in­ OF CONNECTICUT colleagues' attention the participation of clude realtor spirit, civic activity, busi­ IN THE HOUSE OF REPRESENTATIVES Mr. Emil J. Morey of Danbury, Conn., a ness accomplishments, local board activ­ Monday. November 12. 1973 constituent of mine who has the distinc- ity, and support of State and national association activity. Mr. SARASIN. Mr. Speaker, this week tion of being "Connecticut Realtor of the the largest professional organization 1n Year," the highest statewide honor con­ In presentation of the State award to the Nation, the National Association of ferred by this organization. Mr. Morey, the judging committee Realtors, is holding its annual conven- Mr. Morey was nominated for this pointed out his many accomplishments November 12, 1973 EXTENSIONS OF REMARKS 36715 and service to his community. Among in dozens of locations, a new Federal law that through college,'' said Dr. George J. Williams, these were his successful leadership of goes into effect next Jan. 1 has put doctors one of the pioneers in the San Joaquin on notice that they must systematically Foundation !or Medical Care. the fight to defeat increased State con­ regulate themselves or face Federal regula­ Dr. Williams, a general prlictitioner in Lodi, veyance taxes and his support for efforts tions within two years. about 10 miles from Stockton, said that the to upgrade the qualifications for real es­ "It doesn't quite have the ring of certainty foundation's scrutiny of the need for such tate salesmen and brokers licensed in now accorded death and taxes-not yet. But injections had reduced them significantly. Connecticut. peer review as now mandated by Federal Such injections make up only about 2 per Mr. Morey is a past president of the law is fast becoming inevitable," writes Dr. cent of physicians' income in San Joaquin Danbury Board of Realtors, a director Leonard Rubin, coordinator of medical edu­ rather than the 30 per cent common in some of the multiple listing service, a member cation !or the Oakland-based Kaiser-Perma­ places, Dr. Williams said. nente Plan, which covers 1.5 million people. The second goal-quality care-is more of the professional standards committee, The Kaiser plan has its own form of peer re­ subtle, less easily defined, more difficult to chairman of the realtors legislative com­ view, as do the Foundation !or Health Care achieve. mittee, and regional vice president of the Evaluation in Minnesota, the San Joaquin While American medical education prides Connecticut Association of Realtors. Foundation for Medical Care here, and a itself on its heavy scientific base, the actual He is truly a credit to his profession network of federally funded experiments­ practice of medicine consists of about one­ and richly deserves these honors, which widely di1fering organizations whose com­ third science and two-thirds "art", accord­ I commend to your attention. mon experience is often called on to show ing to Dr. John A. COoper, president of the that the peer review concept is workable. Washington-based Association of American Yet at the center of each of these diverse Medical Colleges. And the science is ever­ systems is the belie! that more control must changing. NATION'S DOCTORS MOVE TO be placed on the physician, whether he is a "SIGNIFICANT PROBLEll4" POLICE MEDICAL CARE solo practitioner, a member of a private Physicians are, after all, huxnan. They group, or on the staff of a clinic or hospital. make mistakes. They have differences of And this is another irritant to American opinion. Their performances does not always HON. JOHN J. McFALL doctors, many of whom are already unhap­ reflect their knowledge. PY about increasing "bureaucratic restric­ The peer review system of the Kaiser­ OF CALIFORNIA tions" imposed on them by publicly spon­ Permanente Plan of Northern California, for IN THE HOUSE OF REPRESENTATIVES sored health porgrams such as Medicaid and instance, found "significant problems" in one Monday, November 12, 1973 Medicare. of every eight clinic charts it looked over and Nonetheless, peer review is supported by in 95 per cent of the hospital records it re­ Mr. McFALL. Mr. Speaker, inasmuch the American Medical Association, the Na­ viewed, according to Dr. Rubin of the Kaiser as the Federal Government has em­ tional Medical Association, which represents Plan. barked upon an experimental program the nation's black physicians, and by many And last year, after the United Store providing review of physicians' work by medical societies. And the new Federal leg­ Workers Union in New York City, which ad­ islation has made the idea something that ministers its own health insurance plan, had their local peers, I wish to call the Mem­ doctors will have to deal with whether they begun requiring that members have a second bers' attention to an article from the want to or not. doctor review each recommendation for sur­ New York Times of October 28, titled The statute, a last-minute change in the gery, 19 per cent fewer operations were per­ "Nation's Doctors Move To Police Med­ massive package of Social Security amend­ formed than were initially recommended. ical Care." ments passed a year ago, requires that all Whether this reduction of services repre­ Peer group review is a new program1 medical cases paid for by Medicaid or Medi­ sents quality care is still a matter of debate established by the Congress and is de­ care-the Federal programs for the indigent in the medical field. More controversial is signed to provide a realistic method of and elderly, respectively-be reviewed for whether cost and quality control can be "appropriateness". The review is to be per­ reconciled in one review system. controlling health care costs, as well as formed by self designated local doctor groups "Many physicians doubt whether P.S.R.O.'s providing quality care for our citizens. that will be called Professional Standards can obtain the two stated goals, for in many The people of San Joaquin County, Review Organizations. or P .S.R.O.'s. ways they are incompatible," Dr. Claude E. whom I am privileged to represent, have The legislation, sponsored by Senator Welch, a nationally prominent Boston sur­ benefited since 1954 from the local peer Wallace F. Bennett, Republican of Utah, is geon, wrote in an article in The New England group organization of physicians which supposed to see that the money spent for Journal of Medicine. is based in Stockton, Calif. Medicaid and Medicare-programs that ac­ Still, some experts feel that quality care Founded and still headed by Dr. Don­ counted for $16.4-billion or about 20 per with strong peer review will, in fact, increase cent of the total $83.4-billion of national health care costs. ald C. Harrington, the San Joaquin Foun­ health expenditures for the :fiscal year 1972- In any case, such professional organiza­ dation for Medical Care has successfully buys medical care of the highest quality and tions as the Joint Commission on the Accredi­ evolved as a cornerstone in making the the lowest cost. tation of Hospitals and the American Hospi­ peer group review concept work for the And while the statute is limited specifically tal Association are not counting on the re­ benefit of our medical practitioners and to Medicaid and Medicare, it is seen by view organizations to insure quality medical the patients they serve. doctors and politicians alike as the possible care. Both organizations have developed a Following is the article from the Times framework for any future medical review so-called "medical audit" system for hospitals which I am sure will provide additional system enacted as part of a national health to measure their care in such terms as the information and perspective on this im­ insurance program. rate of postoperative complications-infec­ PURPOSES OFTEN CONFLICT tions, for instance--rather than the number portant concept which is being put into of days a patient stays in the institution. practice throughout our Nation. The purposes of peer review are often con­ flicting. From the consumer's standpoint peer re­ The article follows: One goal of the law is for doctors who con­ view may upgrade the quality of health care, NATION'S DOCTORS MoVE TO POLICE trol such things as laboratory tests, hospital but it will not provide evidence to support MEDICAL CARE admissions and length of hospital stay to malpractice suits. "Malpractice suits will still (By Nancy Hicks) become just as mindful of cost as a house­ be the external quality control for individual wife in the supermarket. patients," said Charles M. Jacobs, a lawyer STOCKTON, CALIF.-American doctors are who is assistant director of the Joint Com­ quickly developing a new nationwide sys­ This concept of conserving basic medical mission on Accreditation of Hospitals. tem to police the quality and cost of the resources, very much a part of medical care From a philosophical point of view, some medical care they dispense. in developing countries such as China, is experts !eel that peer reviewing will take the Pushed by demands !rom Congress. and hard for American medicine to accept, given country one step closer to Government regu­ the country's high degree of medical tech­ the public !or more economical use of the lation of health services, and they wonder if b111ions of tax dollars spent on health serv­ nology. direct regulation is the best route for Ameri­ ices. doctors throughout the country will Some practicing physicians find it absurd, can medicine to take. eventually be engaging in the type of per­ for instance, to spend more than $50,000 on "The Government, step by step, is being formance analysis that was started here in one kidney transplant case and then skimp dragged into the regulation of health care the northern California county of San on giving a blood test routinely to another and is doing so with no set policy, and Joaquin almost 20 years ago. patient. Yet it has been shown that unnec­ P.S.R.O. is just the latest step," said Dr. Wal­ In medicine, such analysis of a doctor's cessary routine medical procedures push up. ter McClure, an as.tophysiclst who is also a. work by other doctors Is called peer review. the cost of medical care. health care specialist at Interstudy, the Although the idea. has been catching on of its .. Vitamin B-12 and estrogen shots alone Minneapolis "think. tank" that originated the own accord and is already actively practiced pay the doctor's rent and put his kids Health Maintenance Organization scheme at 36716 EXTENSIONS OF REMARKS November 12, 1973 the center of President Nixon's 1971 health Department of Health, Education and Wel­ minutes spent with a patient. Reviewers message. fare to become the local reviewing agency, scrutinize the number of visits, based on "The Government," he went on, "is drift­ the P.S.R.O. This group of doctors will set diagnosis, time spent with the patient, lab ing with just one goal in mind-cost control, standards for care for its geographic location work and injections. About 8 per cent of all But you just can't go about controlling costs. and will check to make certain that varia­ claims reach the review committee. It's like trying to cure a symptom without tions from that norm are medically justified. In addition to providing care on a pre­ having a diagnosis." Physicians who are found to be chronic paid basis for 47,000 MediCal (California's And politically, peer review is highly offenders against the locally set norms will Medicaid program) and 37,000 Medicare pa­ controversial. be subject to several sanctions: They can be tients, the foundation reviews claims for Dr. William I. Bauer, who resigned as the denied payments of claims; they can be de­ the 130,000 subscribers to other insurance first head of the P.S.R.O. office in the De­ clared ineligible to participate in the Medic­ programs. This means that two-thirds of the partment of Health, Education and Welfare, aid and Medicare prorgams; they can be fined population in the area is covered in some charged that the Administration had not up to $5,000; they can have their questionable way by the foundation, according to Boyd come forth with the promised $34-million professional behavior made public. Fees will Thompson, executive d.irector of this foun­ to enact the new legislation. He has been re­ not be regulated, however. dation and of the American Association of placed by Dr. Henry E. Simmons, formerly If the system does not work to the Gov­ Foundations for Medical Care. of the Food and Drug Administration. ernment's satisfaction by 1976, doctors will "We have total control of health services OPPOSITION DEVELOPS lose control of the program. for the area because we control the flow of The peer review law is based on several dollars," Dr. Harrington said. "We write the Some state medical societies-those in checks, not the insurance companies." Texas and Louisiana for instance-are ac­ models, some financed by the Federal Gov­ tively opposing the legislation, and one asso­ ernment. 'l,'he oldest and best known, how­ The foundation can and does impose strict ciation of private practitioners, the Chicago­ ever, is the San Joaquin Foundation for sanctions for physicians of questionable per­ based Society of Physicians and Surgeons, has Medical Care based here in Stockton. formance. It can reduce the physician's fee, filed suit against it on the ground that it is The foundation was set up in 1954 by Dr. and he is not allowed to bill the patient for Donald C. Harrington, an obstetrician-gyne­ the extra amount. unconstitutional. In a few cases, doctors. thought to be do­ Individual doctors, too, have protested. cologist who is still its head. As Dr. Harrington recalls, "I was going ing unnecessary surgery were required to One Beverly Hills physician expressed his have their diagnoses confirmed by other sentiments in a terse letter to Senator Ben­ along happily practicing medicine when my brother who was president of the boiler­ physicians before the operation could be per­ nett. "I oppose peer review, I have no peer," formed. The 11 hospitals in the area know the doctor wrote. makers union, called to tell me that the union was negotiating with the prepaid that when the foundation imposes their rules, Yet because of consumerism, which has Kaiser-Permanente Plan for care." and the hospital does not comply, the in­ brought about a general distrust of profes­ Kaiser employes its own physicians, and stitution is not paid for the time the patient sionals, as well as the cost factors in health their patients pay one monthly fee for all stays in the hospital. care, peer review is now appropriate, accord­ Once or twice, the foundation has required ing to most professional medical organiza­ their health needs. Dr. Harrington's brother said that his the supervision of a doctor during surgery, tions. Dr. Harrington said. "Within the physician community, some union members were satisfied with the care still argue about whether the physician shall they were getting from Stockton doctors, but A COMMON PRINCIPLE be accountable for his performance," said Dr. that this new Kaiser plan was economically The principle behind peer review here is Richard E. YaDeau, a surgeon who is chair­ more attractive. the same as in any group pressure situation­ man of the board of the Minneapolis-based SEPARATE GROUP SET UP the same one, for instance, that has almost Foundation for Health Care Evaluation. To combat this competition, Dr. Harring­ every 13-year-old wearing equally faded jeans "As we physicians continue to debate this, ton set up an association of local physicians with a regulation cuff. the rest of the world has long since assumed separate from the medical society. "There are maybe a handful of marginal that physicians are accountable-an assump­ For the dues they paid, they agreed to doctors and being a reviewer has made work tion virtually unanimous throughout the work for a set fee for most procedures, and very hard at not being considered one of nonphysician community," he continued. in some cases would also offer prepaid serv­ them,'' explained Dr. Bryant B. Williams, "Actually, the issue is no longer account­ ices to groups of subscribers. a pediatrician who is one of 30 physician ability, but: by what standards shall physi­ They named their organization the San review and one of Stockton's four black doc­ cians be measured and who will be their Joaquin Foundation for Medical Care. The tors. architect?" term foundation was chosen because Kaiser In his case, he said, peer review has not de­ was sponsored by a foundation and, Dr. Har­ creased his income but increased it-by mak­ QUESTION OF "HOW" REMAINS rington said, he wanted the concepts to be ing MediCal payments competitive with those The question of who will do the review­ parallel in peoples• minds. paid in the community at large. As a result ing has been settled; the doctors will do it. Today, there are 76 medical care founda­ of this factor, about 90 per cent of the doctors But the question of how it will be done re­ tions across the country. About halt of them in the area will take patients from MediCal mains unanswered. review claims. The other half also provide and Medicare-a much higher than normal · Most existing peer review systems are in medical services. percer.tage. individual hospitals-in the form of utiliza­ For the San Joaquin Foundation, peer re­ The model in San Joaquin works, Dr. Har­ tion review committees that check admis­ view came as an afterthought. rington said, because the community is small sions to make certain they are medically "We set up a comprehensive program with enough for doctors to know one another. It justified or tissue committees that examine a reasonable fee schedule for doctors. But would not be transferable to Boston, Balti­ human tissue removed during surgery to see without review, it was like writing a blank more or New York, he admits. whether the operations were justi1led. check," Dr. Harrington said. Larger scaled, less controlling models exist It is because these hospital-based systems The foundation then realized that it could in other places, such as the foundation in have not worked in the past, politicians and not do peer review unless outpatient insur­ Minnesota in which Dr. YaDeau is involved. physicians agree, that a new national sys­ ance coverage was good enough to keep doc­ Unlike the San Joaquin foundation, the tem is being assembled. But ask whether a tors from hospitalizing patients to treat Foundation for Health Care Evaluation does new national system superimposed on the them. Hospital care is expensive-running to not dispense medical care. It reviews the most existing one will do a more responsive job. almost $200 a day in some metropolitan New expensive insurance claims-the top 15 per Theoretically, the national system could take York hospitals-but it is covered by health cent-for local companies, an activity that over the hospital-based ones and monitor insurance. Most health insurance policies do began in Hennepin County in 1968 and is now them, but the mechanism for doing this has not cover the same procedures performed in performed statewide. not been worked out. a clinic or doctor's office at a fraction of the REVIEWS ADMISSIONS "We're moving into a totally uncharted hospital cost. It reviews hospital admissions for 17 of area,'' Dr. Charles Edwards, Under Secretary The foundation, therefore, now sets a min­ the 35 hospitals in the seven-county area. for Health of H.E.W., conceded in an inter­ imum standard of insurance that can be And in the Bethesda Hospital in St. Paul, view. "Neither the Congress nor I know sold in San Joaquin and the four other of which Dr. YaDeau is medical director, the where we're going or what we can achieve. counties under its jurisdiction: Alameda, foundation 1s studying 'the records of every We'd like to upgrade the level of health Amador, Calava-ras and Tuolumn&. patient treated in the hospital in the first care in the country. But the question is, how It has virtually total control of health serv­ quarter of the year. do you do that?,. ices in the area. Ninety-seven per cent of the About 90 per cent of the 2.000 doctors in By Jan. 1, the country will be divided up 330 practicing physicians in the area are the seven-county area. belong to the founda­ geographically into P.S.R.O. areas in which members, Dr. Harrington said. Membership tion. at least 300 physlcans practice. means the doctors are willing to accept as "They pay $10, a.nd for that $10 they have Once thls ls done, local groups of doctors-­ payment in full fee schedules, set by the their fees cut i! they're too high," Dr. Ya­ not the medical socitles-wtll petition the foundation, averaging about $8 for each 10 Deau said. November 12, 1973 EXTENSIONS OF REMARKS 36717 The activities of the foundation h ave been t crmine whether peer review proves the emr:loyed in federal opportunity programs felt in the area. F or instance, 58 per cent of strength or the bane of future health ca re for the d isad v antaged. This is a decrease of those expensive claims reviewed by the reform. 19,683 from last month. Employment under fc undation in 1972 were reduced, Dr. Ya­ this program reached its peak in the month Deau said. For the first nine months of 1973 of July when 63,331 youths were reported in the fee reduction rate was 66 per cent. FEDERAL CIVILIAN EMPLOYMENT, temporary and part-time p ositions. A study of hospital bed utilization has re­ SEPTEMBER 1972 The full-time employment level of 2,403,- sulted in a reduction in the average length 480 reported for the mont h of September of hospital stay from 8.7 days to 6.9 days at Shows an increase of 6,870 as compared with Bet hesda Hospital. When the program was HON. GEORGE H. MAHON the previous month of August and it is 67,- started, the average length of stay had 881 under the total report ed a year ago. dropped to 6.1 days, then came back up. OF TEXAS IN THE HOUSE OF REPRESENTATIVES Of the 6,870 increase in full-t ime perma­ "This was the original fright of doctors nent employment durin g September major who felt they had to send patients home Monday, November 12, 1973 increases were reported by Postal Service because a norm had been set . Then the doc­ with 3,048, Treasury with 1,511, Defense with tor realized that he did n ot have to sen d Mr. MAHON. Mr. Speaker, I include a 1,113 a n d Veterans Administration with the patients home. All he had to do was say release highlighting the September 1973 1,016. why the patient had to stay longer," Dr. civilian personnel report of the Joint During the first quarter of fiscal year 1974 YaDeau said. Committee on Reduction of Federal Ex­ there was a net increase of 8,480 employees Altoget her, utilization review at Bet hesda penditures: Hospital in St. P aul has reduced the cost of in full-time permanent positions. This rep­ care for each hospitalized patient. And, the F:Er ERAL CIVILL"N EMPLOY MENT, SEPTEM BER r esents an increase of 11 ,1 82 among t h e 1973 civilian agencies and a decrease of 2,702 in hospital no longer has a waiting list for elec­ Defense agencies. tive surgery and it has closed down about 80 Total civilian employment in the Execu­ tive, Legislative and Judicial Branches of the A comparison of total employment among of its 300 hospital beds, turning that space the civilian and military a gencies follows : into doctors' offices. Federal Government in September was But the paradox in this--one t hat makes 2,782,244 as compared with 2,810,468 in the preceding month of August--a net decrease peer review unrelatable to many doctors and September hospital administrators-is that t he hospital of 28,244. Total pay for August 1973, the August Change is beginning to lose money by economizing. latest month for which actual expendit ures In 1971, the hospital took in $9-million in are available, was $2,961,752,000. These fig­ u1·es are from reports certified by the agen­ Civilianagencies ______1, 711 , 819 1, 727, 686 -15, 867 income and realized an operating surplus of Militaryagencies ______1,027,440 1, 039, 283 -11, 843 cies as compiled by the Joint Committee on $450,000, or 5 per cent. In 1972, the first full Reduction of Federal Expenditures. year of utilization review, the gross income Total , civilian em- was a little higher, but the operating sur­ EXECu TIVE BRANCH ployment__------2, 729, 259 2, 7€6, 969 -27, 710 plus was only $4,000, four-tenths per cent-­ Civilian employment in the Execu t ive one hospital employe's salary. This year, Branch in September, as compared with the the hospital may run a deficit. preceding month of August and with August LEGISLATIVE AND JUDICIAL BRANCHES The way this paradox is resolved will de- a year ago, follows: Employment in the Legislative Branch in September totaled 34,123, a decrease of 638 as compared with the preceding month of Full-time in August, while employment in the Judicial permanent Temporary. Total Branch totaled 8,862, an incr ease of 124 since Change emRioyment 1 Change positions Change part-time, etc. August. UNIFORMED M ILirARY P E RSONNEL Current change: August l!ll:i ___ _ 2, 396, 610 ------370, 359 ------2, 766, 969 -----·------In the Department of Defense uniformed September 1973_ 2, 403, 480 +6. 870 335, 779 -34, 580 2, 739, 259 -27, 710 military peraonne1 tot aled 2,231,938 for t h e 12 month change : month of September and civilian emp loy­ September 1972_ 2, 471 , 364 ------296, 493 ------2, 167, 857 ------.---- September 1973_ 2, 403, 480 -67, 884 335, 779 +39, 286 2, 739, 259 -28, 598 ment totaled 1,027,440. In addition, Mr. Speaker, I would like Some highlights with respect to Executive P ost al Service with 2,278 and General Serv­ to include a tabulation, excerpted from Branch employment for the month of Sep­ ices Administration with 1,005. the joint committee report, on personnel tember are: The 27,710 decrease in total Executive employed full time in permanent posi­ Total employment of Executive agencies agency employment reflects a usual decline tions by executive branch agencies dur­ shows a decrease of ·27,710 during the month in regular seasonal employment and tem­ of September to a total of 2,739,259. Major por ar y summer employment in federal op­ ing September 1973, showing compari­ decreases were in Defense with 11,843, In­ p cr t u n ity programs for the disadvantaged. sons with June 1972, June 1973, and the terior with 4,071, Agriculture with 3,936, In September there were 32,469 youths budget estimates for June 1974:

FULL-TIME PERMANENT EMPLOYMENT

Estimated Estimated June June Septem ber June 30 June June Septem ber June 30, Major agencies 1972 1973 1973 1974 2 Major agenc.ies 1972 1973 1973 1974 3

Agriculture_------______82, 511 81, 715 79, 182 78, 800 Environmental Protection Agency ______7, 83.5 8, 270 8, 270 9, 200 Commerce ______._ 28,412 28, 300 27, 776 28, 400 General Services Administration______36, 002 35, 721 35,340 37, 800 Defense: National Aeronautics and Space Adminis- Civil functions ___ _------__ _ 30, 585 29, 97I 28,234 30, 800 tration ______27,428 25, 955 25, 814 25, 000 Military functions ______------__ 1, 009, 548 957, 310 945, 688 3 956, 000 Panama Canal _------13, 777 13, 680 13, 690 14, 000 Health, Education, and Welfare ______105, 764 114, 307 ll7, 415 f 101 , 800 Selective Service System ______5, 791 4, 607 3, 577 3, 900 Housing and Urban Development______Interior ______15, 200 15, 820 15, 487 13, 900 Small Business Administration ______3, 916 4, 050 3, 990 4, 100 56,892 56, 771 56,199 56, 900 Tennessee Valley Authority______I4, 001 13, 995 I3, 709 14, 000 Justice ______45,446 U.S. Information Agency ______9, 255 9, 048 8, 929 labor ______45,496 46, 762 47, 100 9, 100 I2, 339 I2, 468 12, 254 12, 400 Veterans Administration _------163, 179 I70, 616 170, 575 I70, 000 State ______-· __ _ 22,699 22, 578 22, 445 23, 400 All other agencies ______33, 499 34, 610 33, 839 35, 800 Agency for International Development_ 11, 719 10, 108 9, 759 9, 900 Contingencies ______------______------5, 000 Transportation_------~ ------__ 67, 232 67,885 67, 351 69, 400 SubtotaL ______I, 910, 854 I, 874,424 I, 858, 434 1, 874, 100 95, 728 98,087 98, 932 104, 000 U.S. Postal Service ______594, 834 547, 283 545, 046 564, 500 l~~~i~rtnergy -commfs-sioii======6, 836 7, 145 7, 241 7, 400 Civil Service Commission ______5, 260 5, 911 5, 976 6, 000 Total& ______2, 505, 688 2, 421,707 2., 403,480 3 f 2, 428, 600

. 1 Included in the total emp)oyment shown on table 1, beginning on p. 3. • Excludes increase of approximately 15,000 in adult welfare categories to be transferred to the 2 Source: As projected in 1974 budget document. It should be noted thatthe President has ord!!red Federal Government under Public law 92~03. reductions in the projected I974 leVel, but information is not yet available. ~September figure excludes 1,175 dis-advantaged persons in public service careers programs as a Excludes increase of 3I,OOO for civilianization program. compared with 1,257 in August. · · 36718 EXTENSIONS OF REMARKS November 12, 1973 THE COST OF LIVING COUNCIL North America 3 ¥2 times more than for Surely Patrolman Cooper is deserving the rest of the world when the old ones of such an award, as well as the thanks had been equal? Why were the new sub­ and praise of his fellow citizens. The HON. VERNON W. THOMSON sidy rates effective on two different saving of a child's life is among the noble OF WISCONSIN dates? Was it coincidental these new deeds that a man can perform, and I IN THE HOUSE OF REPRESENTATIVES rates for North America became effective am sure that the Members of the House Monday, November 12, 1973 September 7, after the rumors about but­ join me in expressing our admiration ter imports began? for Patrolman Cooper's action. Mr. THOMSON of Wisconsin. Mr. It appears all too clear that the Euro­ Speaker, the Cost of Living Council re­ peans understood they would virtually cently proved once again that they know have a guaranteed sale. That meant such nothing about agriculture. You woUld large subsidies would not be needed. But TRY IT ON think that with the chick slaughter and the subsidy retained-38.3 cents per the beef supply interruption, among pound-had to be just enough to under­ other things, the Cost of Living Council sell the American producer. The result HON. JOHN M. ZWACH would go out of its way to avoid pre­ would be lowering the price minimally OF MINNESOTA vious blunders. Yet just last week the CLC to the American consumer, but it also IN THE HOUSE OF REPRESENTATIVES pulled another dandy by persuading the would have the effect of accelerating the Monday, November 12, 1973 White House to permit the importation already shocking decrease in domestic of millions of pounds of subsidized butter. milk production. Once the current emer­ Mr. ZWACH. Mr. Speaker, the 22d I realize I am beginning to sound like gency situation is relieved, the butter amendment to the Constitution of the a broken record, but American dairymen price rise due to milk shortages and the United States provides that no person can favorably compete with their Euro­ whole process will begin again until shall be elected to the office of the Presi­ pean counterparts in a free trade situa­ such time as we have nothing but ex­ dent more than twice-thus limiting the tion. Tile butter deal, however, is far pensive imports. term to 8 years. from free trade; rather, it represents a I do not blame the Europeans; they Most of us agree that this is a good condition where the United States is at are smart businessmen. What I want to amendment, but I raise the question, why least temporarily abolishing our quotas know is where all that Yankee ingenuity put this limit only on the term of the while Europe continues to engage in the has gone or, more probably, have we President? Perhaps it would be a good unfair practice of export subsidies. minor leaguers at the Cost of Living idea also to limit the terms of Members Tile Cost of Living Council argued that Council playing in the majors? If the lat­ of the Senate and the House of Repre­ the price of domestic butter was high, so ter is the case, it might be good to farm sentatives. an increased supply of "cheap" butter them out for a little seasoning. Margery Burns, a weekly newspaper would bring down prices. Of course, they columnist in our Minnesota Sixth Con­ chose to ignore the fact that butter had gressional District, wrote a very interest­ just dropped about 12 cents per pound. ing article on this matter which I would I have consistently wa1ned, however, that PATROLMAN COOPER SAVES like to share with my colleagues by in­ such thinking is shortsighted. It does not CHILD'S LIFE serting it in the RECORD: consider the fact that these imports are TRY IT ON not cheap, but subsidized, and that this If you're feeling groggy because of all the subsidy will not continue once American HON. WILLIAM M. KETCHUM disturbing things that go on and have gone producers are driven from the market. OF CALIFORNIA on in our government, you should start thinking about what we can do to lighten I believe the data surrounding the but­ IN THE HOUSE OF REPRESENTATIVES those dark stretches. ter deal confirm my argument. Currently, Monday, November 12, 1973 What can be done? What should be tried? the target-support-price for manufac­ Along with the other ideas you're thinking tured milk in the EEC is $6.79 hundred­ Mr. KETCHUM. Mr. Speaker, I am about, here's one you should consider too. weight; Government butter purchases pleased and proud to call the attention What do you think about limiting the keep the price at no less than 96.3 cents of my colleagues to an inspiring and number of terms for all elected officials? The per pound. American producers would meritorious action taken by one of my most important official in the world, the drool at the thought of these prices, yet constituents, Patrolman Phillip L. Coop­ President, can only serve 8 years. Perhaps er, of Grover City, Calif. all the other offices should be limited to 8 the very difference is an outstanding years too. indicator of the greater efficiency of our On August 13, 1973, Patrolman Cooper, Now, before you yell that it wouldn't work; dairymen and the need for subsidies if trained in Red Cross first aid, was dis­ that it wouldn't be efficient; that it would the Europeans are going to compete with patched to the scene of a near drowning dump a lot of good people; that nobody them. of a 16-month-old child. On arrival he would run !for office; and besides, Congress I find it significant that the Europeans found the victim with no viable life signs. and the Legislators would never dream of have already demonstrated their inten­ Immediately Patrolman Cooper, assisted voting themselves out of office-before you by the child's mother, began to admin­ shout it's a crazy idea, why don't you look tion of lowering the export subsidy as at it a little bit. Maybe you're right and it soon as there no longer is a domestic in­ ister artificial respiration and other sup­ wouldn't work, but don't step on it without dustry to compete with. In late August or portive measures, which he continued talking it over. early September, vague rumors began to until the child's breathing was restored. Of course, we have only one example of float around Washington that large but­ The victim was taken by ambulance to limited terms-the Presidency. So far, its ter imports were in the making. I could a hospital and later recovered complete­ been better for the country than having one not substantiate these rumors for almost ly. Without doubt, Patrolman Cooper's President keep the job for many, many years use of his first aid skills and knowledge and turn in into a monarchy or dictatorship. a month, but the Europeans did not need The argument that a limited term would confirmation. Already considering some­ saved the life of the child. hurt efficiency in getting things done is silly what reducing export subsidies on but­ In recognition of this lifesaving action, when you think about the inefficient things ter, the EEC dropped its subsidy, effec­ Patrolman Cooper has been awarded the that are showered on us the way it is now. tive September 7, to the United States, Red Cross Certificate of Merit. This is If you believe that it takes long years to learn Puerto Rico, Canada, and Mexico by the highest award given by the American the ropes, then you aren't voting for the nearly 22 cents per pound, from 60.19 Red Cross to a person who saves or sus­ smartest people. And it's imperative that we tains a life by using skills learned in a have intelligent and honest people running cents per pound to 38.30 cents per pound. our government. And then, maybe a little Subsidies for butter exports to other Red Cross first aid, small craft, or water honest inefficiency would be better than a countries dropped less than 6 cents per safety course. The certificate bears the lot of efficient, dishonest governing. pound, from 60.19 cents to 54.72 cents, original signatures of the President of It's true that it would put some good peo­ effective October 13. the United States, honorary chairman, ple out of office, but it would dump some very This action raises several questions. and Frank Stanton, Chahman of the incompet ent people too. Fortunately, there Why did the EEC lower subsidies for American National Red Cross. are many good people to choose from. November 12, 1973 EXTENSIONS OF REMARKS 36719 Then, Clf course, the built-up pressures in abeyance pending final disposition of ergy crisis, that have been emphasized from different groups on elected officials this grave matter. recently, has resulted in a cutoff from would be cut off at an early date. The folks Mr. Speaker, I insert my letter to the Middle East oil supply and now an who use money and gifts to sway officials would have a tougher time trying to pin Chesterfield Smith in the RECORD: increase in tax on the Canadian flow. down new officials every few years. The con­ CONGRESS OF THE UNITED STATES, This has caused a political division in stant turn-over would break that build-up Washington, D.C., November 7, 1973. Canadian and U.S. relations. of power over officials. There would be so Mr. CHESTERFIELD SMITH, EsQ., In my judgment, the matter has suf­ many new officials all the time that it could President, American Bar Association, fered sufficient media coverage as noted cancel out a lot of graft and kick-backs. Chicago, Ill. in the Chicago Tribune in a very timely The constant search for new and good can­ DEAR MR. SMITH: Mr. Archibald Cox, Spe­ cial Prosecutor for the Justice Department, column by Eliot Janeway. The article didates would keep the political parties from discusses the Canadian decision which getting too complacent and sitting back with has, by his self-confessed actions relating to a 20 or 30 year term official who isn't too an executive communication, seriously brok­ seems to take advantage of the situation sharp. Of course, this would be a lot of work en faith and trust with the Congress and the of the United States. and worry. But why shouldn't the parties American people, and, in my opinion, griev­ CANADA ADMONISHED FOR TREATMENT OF work to find good and honest candidates? - ously jeopardized his standing in the Ameri­ UNITED STATES Now, maybe you're coming up fast with can Bar Association. (By Eliot Janeway) By disclosing certain information regarding many arguments against this idea, but when NEw YoRK, Nov. 11.-Canada has done it you've finished that exercise, then think up a federal investigation revealed to him by former Attorney General Richard G. Klein­ to America again. The second tax increase some for it too. in two months on the fiow of Canadian crude What we need are some good sa!fe-guards dienst, Cox clearly violated 28 U.S. Code 509, § 50.2 of Part 50 of Chapter 1 of Title 28 of oil to the northern tier American cities de­ for giving us the best government there is. pendent on it is the form her latest unilateral Of course, the whole thing comes down to the Code of Federal Regulations. Addition­ ally, this conduct was inconsistent with the declaration of economic war has taken. you-you're the one who must take an in­ I yield to no citizen of the United States terest in your government. sf)iiit of the Code of Professional Responsi­ bility, governing all officers of the court. ~n the warmth of my friendship for Canada, I am appalled at this blatant misuse and m the range and breadth of my Canadian abuse of office. The reputation of all officers friendships, and in the practicality of my of the court may well be held in abeyance concern for this closest and most natural and ARCHIDALD COX DISBARMENT pending proper disposition of this matter. reciprocally rewarding of American partner­ Therefore, I believe it is incumbent on you, ships. Three times in these last two troubled as President of the American Bar Association, months, I have written columns warning of to begin an immediate and thorough investi­ the consequences looming for both countries HON. E. G. SHUSTER gation into the potential criminal and cer­ if America's present distress and Canada's OF PENNSYLVANIA tainly unethical activities of Archibald Cox, continuing weakness are allowed to strain this genuinely special relationship beyond IN THE HOUSE OF REPRESENTATIVES leading to possible disbarment, censorship or other action deemed appropriate by your the point of negotiating accommodation. Monday, November 12, 1973 organization. Admittedly, the temptation for Canada to In your statement following the dismissal tweak Uncle Sam's whiskers is great. They Mr. SHUSTER. Mr. Speaker, when are tattered. Canada's increasingly strident Archibald Cox was dismissed as special of Cox as Special Prosecutor, you applauded him, stating he" ... emphasized to the peo­ nationalists are confident of scoring points prosecutor for the Justice Department, ple of this nation that ... (he is a) lawyer politically every time they make big uncle he was widely lauded as a man of con­ who honors and cherishes the tradition of the squeal and like it; altho I am not less sure viction, one who put principle above legal profession and ... (he) properly and than they that demagogic anti-U.S. swag­ politics, one whose integrity was more without hesitation puts ethics and profes­ gering will not pay off as claimed after Ca­ important than compromising his esti­ sional honor above public office." It is clear nadians of practical bent discover tha..t they now that this statement was without founda­ are hurting themselves every time they hurt mate of justice, indeed, Chesterfield tion. I hope that now, in light of the confes­ their good, if wounded, neighbor to the south. Smith, president of the American Bar sion of Cox casting a long shadow on your Admittedly, too, America's incompetent Association, glowingly praised Cox at plaudits, you will denunciate him with the handling of her own affairs has invited the same vigor and forcefulness with which you treatment Canada has given her. Oil is the that time, stating: only one of three parallel horror stories. He emphasized to the people of this Na­ acclaimed him. I wish to emphasize that my actions are With Washington fresh out of negotiating tion that-he is a lawyer who honors and completely segregated from any other on­ ploys to prevent the Arab and Venezuelan cherishes the tradition of the legal profes­ hosts of the American international oil com­ sion .and-(he) properly and without hesita­ going investigations or Congressional or legal panies from putting the squeeze on, Canada tion puts ethics and professional honor proceedings. I am merely attempting, as a 1s not leading the parade but following it. above public office. concerned American and as a representative Newsprint is another horror story for which of nearly a half-million people, to insure that America has herself to blame. More pre­ Mr. Speaker, it is evident now that the same standards and rules apply across the cisely, she is overdue to blame the economic these plaudits were totally without board-to the investigators as well as the pundits who theorized about the advan­ foundation. investigated. tages dollar devaluation would assure her. Cox, by his confessed disclosure of If the integrity of our system of judicial In my column of Sept. 10, I warned that confidential information to polititcal process is to be upheld, no man can place the prospect of earning cheaper U.S. dollars cronies, has betrayed the Congress and himself above the law-not the President, not would give Canada's newsprint producers an any duly appointed officer of the Court, not irresistible incentive to divert increasing the American people, and seriously of­ the average citizen, and not Archibald Cox. quotas of their premium product overseas. fended the integrity of the legal profes­ I consider this to be a matter of utmost im­ At $200 a ton, allowing 4 per cent for the sion. I am appalled that such a blatant portance and urgency. Your cooperation is cost of insurance against further weakness violation of both criminal statute and essential. for the Nixon dollar, the Canadian newsprint professional ethics can go virtually un­ Sincerely, managements are bound to reckon each ton noticed in the legal profession. E. G. SHUSTER, shipped across the border as earning them This situation is so serious that I have Member of Congre$!1. $8 less than every ton shipped to stronger personally written to the president of the currency countries. Washington's failure to play America's American Bar Association and the presi­ formidable auto bargaining chips is the third dent of the Massachusetts Bar Associa­ CANADA ADMONISHED FOR TREAT­ horror story. Washington has been giving tion asking for an immediate and thor­ MENT OF UNITED STATES Canada a free ride into a sizeable portion of ough investigation of the Archibald Cox America's mass market since 1965. Canada incident, leading to possible disbarment needs it more than ever; and this year finds censorship or any other action deemed HON. EDWARD J. DERWINSKI America less able to afford playing "good appropriate by those professional asso­ OF U.LINOIS time Charlie" than in a long time. Taking it away with unilateral harshness would be ciations. IN THE HOUSE OF REPRESENTATIVES Mr. Speaker, it is incumbent on these no wiser for America than Canada's provoca­ Monday, November 12, 1973 tive tactics are for her. But there's no substi­ associations to take appropriate action tute for bargaining between partners as their in order to uphold the integrity of the Mr. DERWINSKI. Mr. Speaker, the mutual protection against excesses-and we legal profession, which may well be held news developments pertinent to the en- have no bargaining. 36720 EXTENSIONS OF REMARKS November 12, 1973 This second oil tax crackdown of Canada of the Burney Democratic Women's Club, American people on television last week. has hit America on two exposed nerves at effective November 1. I find myself in complete accord with once. The first is located domestically and Mrs. Border was responsible for the orga­ the President when he spoke of the pres­ centered in her slackened consumer economy. nization of the club in 1958 and has been ent energy crisis as a very serious one The other is located in the no-man's-land active ever since. She organized the club separating America from her one-time de­ with the help of Kathryn Browand and Edna confronting all the people of this coun­ pendents who have long since gone into busi­ Barrington and Emma Timone. try. But that is about the only point in ness for themselves as her successful com­ The first president of the club was Jean­ his message on which we agree. petitors and harsh creditors. ette Messinger. A year later Mrs. Border was For unlike this administration, the The oil and gas dollar is petty change for appointed secretary-treasurer and she has Congress has foreseen this grave situa­ American consumers alongside the food, held a top office in the club every year since tion and has been working diligently in rent, and tax dollar. But soaking them for then. She served as president for ten years an attempt to develop constructive and big new fuel costs will rile them up more and has been president for the past six effective solutions to the complex prob­ than the beef squeeze did. years. All the foreign powers in the world scru­ CLUB WILL BECOME INACTIVE lems relating to our Nation's energy tinizing America, as well as all the weaklings, With the retirement of their president, the needs. are bound to be impressed by the one-way other members of the club decided not to There is also little doubt that the trip thru the meat grinder that Ottawa is continue an active club. However, in order energy crisis has been heightened by the giving Washington. Kicking Dick Nixon to keep their identity and bank account, Arab States, who, in the practice of "oil around is a paying business internationally, they will elect officers for 1974 on Novem­ diplomacy," have chosen to cut back oil and every politician in every foreign capital ber 5. The club will also assist in the 1974 exports to the United States. However, it is following Trudeau into it. election in a small way. is wrong to imply, as the President Mrs. Border's political activity includes a TV appearance in Redding on behalf of seemed to suggest, that the recent out­ John F. Kennedy when he was running for break of hostility in the Middle East is president in 1960, and on radio in Redding in alone responsible for creating our energy GRAND OLD LADY OF POLITICS 1964 on behalf of Pauline Davis. problems. These problems have been She has served as Eastern Shasta County with us as a nation for a long, long chairman for Don Rose when he was run­ time. They have been exacerbated by ning for Secretary of State, Pauline Davis such artificial policies as the oil import HON. HAROLD T. JOHNSON when she was running for the Assembly, OF CALIFORNIA Virgil O'Sullivan, State Senator, and Jess quota system and others which have IN THE HOUSE OF REPRESENTATIVES Unruh for Governor. served the special interests rather than Monday, November 12, 1973 Mrs. Border has been on Bizz Johnson's the public interest. Shasta County campaign committee, and on I agree fully with the President when Mr. JOHNSON of California. Mr. Senator John Tunney's campaign committee he speaks of the need for bipartisan co­ Speaker, an old friend of mine has de­ since each was first elected. operation in overcoming the grave energy cided to retire and thereby has brought In addition, she has served the past nine problems which now face us. I am to an end one of the most effective, color­ years as Eastern Shasta registration chair­ reminded of the commitment made by man. ful volunteer political careers I have ever But perhaps her first love is music. Mrs. the late President Kennedy to land a known. Border is the composer of several songs for man on the Moon within the decade Alice Border, who will reach 79 years the club and other music. She says, "Maybe of the 1960's. When President Kennedy this month, has been known as "Mrs. now that I am retired, I'll have more time to first made this commitment in 1961 there Democrat" in the eastern Shasta County play the piano and write music." were few who believed that this lofty area for at least a decade and a half. With all the activities of Mrs. Border, Mr. goal could be achieved. It was only It was in 1958 that she organized the Ted Border is not left out of the picture at through the spirit of cooperation between all. In fact, she said, "He has been the good Burney Democratic Women's Club and right arm of the club since 1960 and has re­ the President and the Congress, and be­ as she stepped down as its president this ceived a plaque as an honorary member of tween scientists and private industry, year, club members decided to regroup the club." that we were able to make what first under another name, because it would Ted Border, also known as "Mr. Democrat," seemed no better than a dream become not be the same without Alice Border. retired from the then Scott Lumber Mill an almost commonplace reality. Meeting One of the remarkable efforts spon­ in 1956 and started his own business, Ted's the energy needs of the people of this sored annually by the club was a quilt Upholstery. He hopes to retire from thi~ Nation will require a similar sense of sale, which has been a tradition in Bur­ sometime next spring and open a rock shop. purpose and dedication on the part of He has been a member of the Democratic ney. It was through the making of quilts Central Committee since 1962 but does not both the President and the Congress. and their sale that the club raised its plan to run for the office next year. Even more important it requires leader­ ship on the part of the President to funds for its most effective efforts. QUILT SALE WILL BE THE LAST Alice and her husband, Ted, who him­ produce a willingness to cooperate on the The annual quilt sale that is almo~t a self is an active, dedicated representa­ tradition with the Borders will be held this part of Congress. It is precisely for this tive of the Democratic Party, together year on October 26 and 27, "But this will be reason that I was sorry that the Presi­ demonstrate the importance of partici­ the last," said Mrs. Border. "It has just got­ dent, at the very moment when leader­ pation by all our citizens in our Govern­ ten to be too much." Most of the quilt work ship and cooperation are so necessary, ment regardless of party. Their work on is done by Mrs. Border herself. chose to lay the blame for the energy behalf of their party, their State, and "I'm not retiring from life, remember,'' crisis at the door of the Congress. In so the Nation will stand for years to come Mrs. Border said. "I plan to spend more time doing he was seriously misleading the as an example which should and must enjoying the beautiful area we live ln. I've American people. be followed not only by the people of traveled a lot, but there's no place like this It is important to examine the Presi­ Burney but of all our State of California area." dent's previous energy messages to the and our Nation if we are to continue a Congress. His message of 2 years ago was free democratic society. an enunciation of high goals and pur­ An announcement of the retirement ENERGY CRISIS poses but without specific recommenda­ of this "Grand Old Lady of Politics" was tions. As the energy squeeze grew worse, published recently in the Inter Moun­ Congress was led to believe that the HON. TORBERT H. MACDONALD President planned a comprehensive leg­ tain News of Burney, Calif., and I insert OF MASSACHUSETTS in the RECORD the article entitled "Grand islative program for which he would seek Old Lady of Politics Is Retiring": IN THE HOUSE OF REPRESENTATIVES congressional approval. When his sec­ ALICE BORDER AT 79-GRAND OLD LADY OF Monday, November 12, 1973 ond message was finally sent to Con­ POLITICS Is RETIRING Mr. MACDONALD. Mr. Speaker, I gress, in April of this year, it proposed BURNEY .-The lady known as "Mrs. Demo­ would like to call to the attention of my legislation which,- at best, could only crat" in the Burney area is resigning. Mrs. have a long-range effect. There is no Allee Border, who will turn 79 in November, colleagues the President's latest energy has announced her retirement as president message which he delivered to the evidence that any of the seven pieces of November 12, 1973 EXTENSIONS OF REMARKS 36721 legislation which he recommended in playing a kind of shell game with the overwhelmingly, 337 to 72. The confer­ April would have better enabled the American people by attempting, through ence report is scheduled for final ap­ country to survive the shortages and the a sleight-of-hand, to demonstrate that he proval by Congress this week. suffering which are undoubtedly in store has had a program to meet the energy What is important to note is that at for this winter. In addition, most of the crisis all along. In reality, the President no time during the period in which Con­ legislation he proposed was extremely has not even utilized the authority al­ gress was readying this legislation did controversial and was the kind of legis­ ready granted to him by the Congress. the President exercise the authority we lation which Congress needed to examine In April of this year, Congress, in the had given him in April to achieve the carefully, although with all diligent Economic Stabilization Act Amendments same goal. It is difficult to lay the blame speed. of 1973, gave the President authority to for delay at Congress door in this in­ For example, the President recom­ order mandatory fuel allocations. In stance. mended deregulation of the price of nat­ May, I, in conjunction with Senator In closing, I would agree with the Pres­ ural gas at the wellhead. This has be­ JACKSON and Senator KENNEDY, intro­ ident that now is the time for all of us come, it seems, the holy grail of this duced mandatory allocation legislation. to work together and to put aside parti­ administration. I am not convinced that The purpose of my bill is to provide a san and personal differences for the sake the deregulations of natural gas prices method to assure an equitable distribu­ of the American people. I can assure the will produce any more energy for this tion of fuel sources to all regions of the President that he will have my subcom­ country. What clearly would result from country. It also assures that the inde­ mittee's complete cooperation to this end. such deregulations is an immediate and pendent marketer of petroleum products However, I can only hope that the Pres­ substantial increase in the price of this will not be forced out of business at the ident will be able to follow his own ad­ fuel to the consumer, without the needed whim of the major oil companies. In ad­ vice and that he will stop taking bad exploration for new sources of natural dition, such an allocation program will advice himself from the major interna­ gas. I know that you will be as shocked insure that domestically produced fuel tional oil companies. as I was when I was informed by repre­ oil is utilized to meet domestic needs as sentatives of the major oil companies the highest priority. Implementation of sitting as a group in my office that they a similar program by the President un­ would not promise to use this new-found der the authority given to him by Con­ money for exploration for new gas. For gress could have prevented what is re­ THE MULTINATIONALS as they said, "Our first responsibility is ported to be an increase in the exporta­ to our stockholders." And when pressed tion of domestically produced fuel oil by as to what they would do with the wind­ the major oil companies at a time when HON. SAM GIBBONS fall increase, they replied, "If the return our needs here at home should be over­ OF FLORIDA was greater in real estate we would in­ riding. The enactment of the mandatory IN THE HOUSE OF REPRESENTATIVES vest in real estate." Until and unless allocation legislation which I introduced, there are assurances that the new money and which was agreed to last week by Monday, November 12, 1973 will be used for exploration for new gas, House-Senate conferees, specifically pro..; Mr. GIBBONS. Mr. Speaker, a group of the Congress should remain reluctant to hibits such exports in the future. How­ us from the House met recently with a pad the pockets of the major oil com­ ever, I would like the President to ex­ group of European parliamentarians panies at the further expense of the plain why he has allowed these exports here in Washington for 3 days of dis­ consuming public. to rise over the past 6 months in a time cussions on United States-European re­ However, despite the controversial na­ of increasing shortages. lations and other matters of mutual ture of this legislation and the others The voluntary allocation program interest, including trade, investment, de­ proposed 6 months ago by the President, which the President announced last May velopment, and energy policies. Congress is going forward with the con­ failed to meet the needs of the country. During one of these sessions it was my sideration of these proposals and will act It should have been clear at that time privilege to present a discussion paper on when it is convinced that the national that the only workable solution was a the issues involved in the worldwide op­ interests are indeed being served. The mandatory program. erations of multinational corporations­ Alaskan pipeline conference report which Typical of administration foot-drag­ MNC's. we will vote on today is an example of ging attitude in face of the energy crisis There was a great deal of agreement this process. has been their reluctance to change from a voluntary to a mandatory allocation among those present at that session on In his energy message of last week, the nature of the problems for govern­ the President again urged Congress to program. On July 10, appearing before act swiftly in extremely important areas. the Commerce Committee to testify on ments which are associated with MNC For example, he has asked Congress to my mandatory allocation bill, Deputy operations. We agreed that at our next roll back existing environmental protec­ Treasury Secretary William Simon, who meeting, in March, we would discuss the tion laws which are the product of a dec­ was Chairman of the President's Oil Pol­ specific points which could be included ade of concern on the part of the Amer­ icy Committee, promised administration in a new international agreement on the ican people. In many other respects, he action on a mandatory program within taxation, standards of conduct and im­ has asked the Congress to grant him 7 days. Needless to say, no action was plications for competition of MNC oper­ broad energy powers which he would forthcoming, and it was in this period ations. use to meet the current energy crisis. that Secretary Simon was replaced as "energy czar" by former Colorado Gov. I would like to insert my discussion As chairman of the Subcommittee on paper on MNC's in the RECORD at this Power, I can assure the President that John Love. I requested Governor Love's position on mandatory allocations but point and ask for comments which might Congress will act on his proposals where be helpful to us in drawing up a proposed we agree that the power is necessary and was told that he was unavailable totes­ tify. On July 25, in my remarks in this international agreement on this impor­ will be used wisely. But the Congress will tant subject: not be rushed into precipitous action Chamber, I expressed "a sense of regret simply because the President claims that and disappointment" at the lack of re­ THE MULTINATIONAL CORPORATION; ITS REGU­ solve on the part of the administration LATION, TAXATION AND STANDARDS OF OP­ he needs special authority in order to act. ERATION Many of the proposals made by the Pres­ to take the steps necessary to implement ident last week could have been imple­ a mandatory program. The following day (By Congressman SAM M. GmBONs) mented 6 months ago or even 2 years Governor Love telephoned me and prom­ Prepared for presentation at a discussion ago by the stroke of his pen. Others ised a decision within "a few days.'' meeting of U.S. Congressmen and European Parliamentarians, October 30, 1973, Washing­ could have been adopted after consid­ Again, the promise was an empty one. ton, D.C. eration by the Congress before things As a result, Commerce Committee ac­ The Honorable George Ball, former U.S. reached the crisis proportions of today. tion on H.R. 9681 was completed quick­ Under Secretary of State, once said this In effect, the President appears to be ly and the bill was passed by the House about the multinational corporation: 36722 EXTENSIONS OF REMARKS Novem~er 12, 1973 "The multinational corporation not only accountings of the costs and benefits of the In the case of the United States, for in­ promises the most efficient use of world re­ multinational corporation and have failed stance, it is the view of many who have stud­ sources, but as an institution, it poses the to make the MNC really responsible to any­ ied this subject that we have encouraged greatest challenge to the power of a nation­ one or any organization. U.S. foreign direct investment and the state since the temporal position of the Thus, we face the real prospect that our growth of the MNC, unnecessarily and at Roman Church began its decline in the 15th individual and common social, economic and least to some extent, by certain provisions century." political goals and policies will be frustrated of our tax laws and by the operation of the Truly, it is fitting and most necessary that by the day-to-day operations of the giant insurance programs of our Overseas Private we focus our attention on the development MNCs-that individual corporate managers Investment Corporation (OPIC). of the multinational corporation (MNC)­ will make decisions that can overrule the What benefit has all of this brought to the now perhaps the dominant force in economic decisions of national governments. United States? While we know that it has relations between nations-for we as rep­ We face the likelihood that the MNC will helped enrich some of those associated with resentatives of the people of the world can continue to exploit its supranational advan­ U.S. MNCs, we have not even required these continue to neglect this subject only at our tages to escape a just burden of taxation, as companies to supply us with the detailed in­ mutual peril. well as to avoid our efforts to curb monopo­ formation on their operations which would There is no denying the fact that the mul­ lies, moderate inflation, and so forth. The give us the opportunity to try to determine tinational corporation, as an instrument for MNCs' great power to avoid the desires and accurately whether these tax subsidies by the greatly increasing commerce among nations, rulings of national governments simply by American taxpayer to the U.S. based MNCs carries with it the potential for increasing shifting their production or their capital­ has been of any general benefit to the United greatly not only our standard of living but and thus jobs and tax revenues-to other States or to other commonly agreed upon also the prospects for peace and understand­ jurisdictions is an awesome power which goals, such as that of development in the ing on this fragile planet. cannot go uncurbed. less developed countries of the world. The multinational corporation can be one If we do not cooperate as governments to At the very least, our various national poli­ of the most efficient economic units ever make the MNC accountable for its actions, cies should aim at neutrality in our tax poli­ known to man. It has integrated world re­ we run the risk that the MNC, world-wide cies with regard to investment decisions­ source markets with great success, especially in outlook and understandably self-serving, especially in the absence of strong evidence labor and capital markets. It has been the will continue to promote its own suprana­ that tax subsidies in the form of tax forgive­ same kind of boon to the world economy as tional goals, such as profits maximization ness for certain kinds of business activities the domestic corporation was to the United and market enlargement, with little legal are really efficient in promoting vital na­ States in the 1880s and 1890s when it inte­ obligation to consider other factors, such aa tional goals. Recent studies by the joint grated the various regional markets and re­ national social goals. Economic Committee of the U.S. Congress sources of the country. While the conscience of the MNC business­ confirm the view that the tax subsidy has The development of the corporation in the man and public pn:ssure can have some ef­ been a very poor means for trying to promote United States was not without its problems, fect on this situation, they are obviously no national economic and social goals. however, just as the development of the MNC substitute for an orde1·1y and detailed as­ In like manner, our investment policies is not. The most notable reaction by the U.S. sessment of the effects of MNC operations should be as neutral as possible, avoiding government to the excesses of the corpora­ and national and international policies and either subsidies or restrictions wherever pos­ tion was the creation of the U.S. antitrust laws designed to deal with these effects. sible. We are pursuing studies of the effects laws. Unfortunately, a similar reaction to the Very recently, a number of different groups of these distortions on investment patterns excesses of the MNC has not been so rapid have undertaken studies of the MNC. These within the U.S. government and also in the and definite in appearing. include the United Nations, the OECD, the OECD. However, a new international institu­ As so often happens in the case of rapid International Labor Organization, the Euro­ tion, such as the General Agreement on Tax new developments, the governments of the pean Commission staff, and the U.S. Con­ and Investment Policies suggested above, world have, it seems, been tardy in recogniz­ gress. Although necessarily fragmented, these could be most helpful in centralizing our ing the significance of the MNC and our efforts should continue to have our strong efforts and harmonizing investment policies, common interest in keeping the operations support and their results should be studied as well as tax, antitrust, and other policies of the MNC responsive to nationally and in­ very carefully. toward the MNC. ternationally agreed upon goals. Timely completion of our efforts to reform As far as effective monitoring or action re­ Nonetheless, this question remains: Is not the international monetary system is, of garding the development of the MNC goes, the importance and urgency of the problems course, vital to all of this. associated with MNC operations so great that the nations of the world really have been THE NEED FOR MORE INFORMATION "drifting" in their policies. we ought to be pursuing, right now, a new international agreement and creation of a Our first need to make us able to come to MAKING THE MNC ACCOUNTABLE new institution, perhaps similar to the more prudent policy decisions toward the No multinational corporation in its right GATT? Would it not be wise to centralize MNCs and toward foreign direct investment mind would of course voluntarily submit to and focus our efforts regarding the MNC and is for more complete and current data on the government regulation. A Dow Chemical related problems in a new international operations of the MNC. Although what we Company official admits to a continuing body-perhaps a kind of general Agreement do know about the size and operations of the dream of "buying an island owned by no on Tax and Investment Policies? MNC is impressive, it is hardly detailed nation, and of establishing the world head­ It would certainly be appropriate for the enough for good decision making. quarters of the Dow Company on the truly United States and the European Community Indeed, we haven't even been asking the neutral ground of such an island, beholden to exercise leadership in establishing such a right questions about MNC in many cases. In to no nation or society." new legal framework designed to promote co­ the United States, we've focused our atten­ Anthony Sampson, author of the book, operation between countries in resolving tion on whether MNC operations were good "The Sovereign State of ITT," observes that problems and disputes not now handled by or bad for our employment rate or for our MNCs invariably regard governments, like any one institution or agency of an institu­ balance of payments. While these issues other obstacles to management, as nuisances tion. should be considered, other very serious to be circumvented or overcome." Whether this were an entirely new body or questions about the effect of the MNC on re­ In the United States, the Federal Trade an adjunct of an existing organization, it source use, market concentration, income Commission brought suit against the Xerox would serve a most useful purpose in cen­ distribution, and tax policies simply have corporation. At first, the company would tralizing the collection of information and not been studied. not even meet with representatives of the serving as a forum for discussions and con­ For Americans, one of the most disturbing Commission. Their response was "We don't sultations on mutual problems and concerns indications that there are serious gaps in our believe that the Federal Trade Commission relating to the MNC. It could spell out gen­ knowledge about the MNC came to light in is the appropriate forum for the resolution erally agreed upon principles where possible connection with the massive Tariff Commis­ of the problems of multinational corpora­ and aid harmonization of policies where gen­ sion Report to the Senate Finance Commit­ tions." eral agreement was not possible. tee in February of this year. This report, By what right should any MNC feel that After all, efforts divided are efforts defeat­ "Implications on Multinational Firms for it is or should be responsible to no one? ed. And surely it never was prudent for any World Trade and Investment and for U.S. After World War II we were careful to of the countries of the world to believe that Trade and Labor," is generally considered set up agreements and institutions promot­ our best defense against the excesses of the to be one of our best sources of information ing agreement on divisive world issues-the MNC was to have more MNCs based in our on the MNC. Yet, in the letter transmitting United Nations, the International Monetary country than the other countries had. This this report to the Finance Committee, the Fund, the General Agreement on Tariffs and kind of competition, like unreasonable com­ Chairman of the Tariff Commission stated: Trade (GATT)-but we failed to realize that petition between the less developed countries " ... Further, the difficulties imposed by the MNC would become a force and a prob­ for MNC investment (which erodes their tax the procedures involved in the use of an lem to be reckoned with in its own right. base) , can too easily result in the benefit of unlike data base for the two bench-mark Though we now seem to have recognized this years were increased by the failure of there­ the MNC itself at the expense of all spondents to answer fully with respect to fact, we are in large part still failing to deal countries. certain key data. In turn, these difficulties rationally with the MNC, either as individual Some actions can of course be taken by were magnified for the reason that such data countries or on an international basis. individual countries on a unilateral basis to were reported to the BEA in confidence and, We have generally failed to make realistic moderate the operations of the MNC. to prevent unauthorized disclosure, were re- November 12, 1973 EXTENSIONS OF REMARKS 36723 leased to the Commission in many cases only passed trade as the main means of interna­ Earnin gs from the foreign operations of U.S.­ in the form of incomplete aggregated esti­ tional economic exchange and has blurred based MNCs now contribute 20-25 percent of mates. national borders. It has caused some econ­ U.S. corporate after-tax profits. Thus, they "Data on 1970 employment by the MNCs, omists to literally rewrite their theories have become a rather important element in for example, were lacking or only partially about the economic effects of trade and com­ promoting the growth of the U.S. economy. available for about 600 of the foreign affili­ merce among nations. 1965-68 figures for U.S.-based MNCs show ates and for about 30 of their parents in the Germany apparently has more capital in­ returns of 7.9 percent for developed country sample; about a third of the total data re­ vested today in textile and chemical plants investment (9.6 excluding petroleum) and ported in 1970 was subject to disclosure con­ in the State of South Carolina in this coun­ 17.5 percent for developing country invest­ siderations which necessitated numerous try than anywhere else in the world outside ment (11 percent excluding petroleum). In estimations." of that country. Switzerland's largest cor­ this latter category, investment in Asia Ralph Nader, the tireless spokesman for the poration, Nestle Alimentana S.A., does 98 yielded 34.7 percent return (11.7 excluding American consumer and taxpayer, has sub­ percent of its business outside of Switzer­ petroleum). mitted this list of what information MNCs land. U.S. MNCs control something like 90 There is of course a great difference in should report to the United Nations for pub­ percent of Europe's production of micro­ return for different investments. One study lication in the public interest: circuits. of return on net worth for 15 U. S. drug sub­ 1. Who owns what land, mineral and other U.S. MNCs account for something like 50- sidiaries in Latin America shows returns resources in each country; 60 percent of all foreign direct investment. ranging from 44.2 percent to 962.1 percent, 2. The amount, origin and nature of new MNCs based in the U.S., the U.K., Germany with the average being 136.3 percent. investment; and France control 80 percent of the foreign NATIONAL RESTRICTIONS ON THE MNC 3. The firm's total income; operations of MNCs. The phenomenal rise of the MNC has 4. Payments received on royalties, patents, The United States has been the traditional prompted reactions to it. Even without co­ licenses and management contracts from for­ home of the MNC. The book value of u.s. operating with one another, nations are not eign affiliates; direct investment abroad increased from $12 of course completely defenseless against the 5. Ties and interlocks with other financial, billion in 1950 to more than $86 billion in MNC. Perhaps their first line of defense is industrial and government corporations to­ 1971. Americans tend to think of this in­ to prevent the MNC from investing in their gether with credit and debit relationships; vestment as being mostly in less developed country. 6. The amount of taxes paid by country; countries. However, Western European and The Andean Group has come up with very 7. All mergers and acquisitions and their Canadian markets were early targets for this stringent regulations on any foreign invest­ terms; investment and today about 60 percent of ment. These are designed to insure that this 8. Special governmental incentives to firms this investment lies in these two areas of investment benefits the host country and to settle where they did, including subsidies the world, with about one-third in Europe does not lead to further dependence on other and other state-granted privileges and im­ and more than one-fourth in Canada. Latin countries. Mexico has adopted new foreign munities; American investments account for about investment laws and Canada-with fully half 9. All patents held and cross-licensing one-sixth of U.S. MNC investments. of her capital assets now owned by U. S. or agreements; Nonetheless, it is somewhat unlikely that British-based MNCs-and Australia are also 10. Wages and benefit levels; U.S.-based MNCs will retain their domi­ moving in this direction. · 11. Occupational casualty and disease data; nance in the world economy. Two hundred Some of the less developed countries are 12. Environmental pollution and deposi­ non-American firms are now on the Fortune requiring that a certain percentage of the tory data; and magazine list of the world's 500 largest cor­ goods sold in a country be produced locally, 13. Judicial and regulatory actions and porations. European and Japanese foreign while a special kind of "investment code" or judgments which are of public record. direct investment has been increasing local participation requirement is now forci­ Others have suggested that, at least for the rapidly. For instance, Japanese investment bly being put into effect by the Arab oil-pro­ immediate future, this kind of reporting will abroad has been increasing by more than 30 ducing countries. have to be done on a confidential basis and percent per year in recent years. Expropriation is another power that the only to the government of the country in Many economists believe that it was not host country retains in connection with the which the MNC is based-the government only the health of the American economy investments of an MNC. Expropriations, which has legal jurisdiction over the com­ after World War II and the American tech­ especially in Latin America, have been on the pany and is able to enforce laws on it. nological lead in certain areas which con­ rise in recent years. Hopefully, national in­ In any case, it is clear that a start must be tributed to the rise of the U.S.-based multi­ vestment codes will set the ground rules for made now toward requiring more complete national corporation, but also the overvalued foreign direct investment more specifically reporting from MNCs. Also, the cooperation dollar of recent years. This phenomenon and both expropriations and home country which has begun between governments such made it comparatively much cheaper than attempts at remedy, such as OPIC, will be­ as the United States and European countries it should have been to use dollars to buy up come much less common in the future. in exchanging this information for legiti­ plants and other facilities abroad. Most countries of the world, including the mate purposes, such as that of taxation, Foreign investment in the United States United States and the Europeans, seem to should be expanded. Nearly all governments amounts to less than half of our investment be rethinking their attitudes toward the have much to gain in this regard. abroad. Further, direct investment, such as costs benefits of the MNC. This is as it should "Laissez-faire" is not an appropriate pol­ in plants and other facilities, amounts to be. The result has generally been more re­ icy for any business operations having such strictive policies toward the MNCs, or at least far reaching effects as those of the MNCs. only 28 percent of this investment in the United States, as compared with 74 percent the consideration of this kind of change. Any claims to confidentiality or privacy made of U.S. investment overseas. Portfolio hold­ Nonetheless, it would be unfortunate if by the MNCs in this connection will have to this change in direction resulted in unneces­ be weighed carefully against the very strong ings account for 60 percent of foreign in­ vestment here as compared with only 19 sarily restrictive policies toward the MNCs, public interest in having access to certain of for our goal would seem to be that of har­ this information. percent of U.S. investment abroad. Our embassies are actively encouraging nessing the great potential of these giants CHARACTERISTIC OF THE MNC direct investment in the United States. The and making them responsible to public policy What we do know about the size and oper­ more realistic exchange rates which have rather than putting them all out of ex­ ations of the MNC should give us a healthy prevailed recently seem to be a factor in pro­ istence. respect for its power and its potential. moting this investment. Two of the most troublesome problems in The MNCs are indeed giants, both in size Foreign companies are also investing in relation to the MNC are ( 1) how to assess and in influence on the world economy. At­ facilities here to serve their U.S. markets. and enforce a just burden of taxation on the tached at the end of this paper is a table In some cases, this is also being done to MNC and (2) how to limit the monopo­ showing the sales, foreign sales and sub­ avoid any possible resurgence of protection­ listic oligopolistic tendencies of these giants sidiaries of the 15 largest multinational cor­ ist U.S. trade policies. In this connection, so that their operations do not have serious porations. (Table 1) the president of the United Auto Workers adverse effects on competition and on prices The MNCs are growing twice as fast as the has expressed his approval of the building in world markets. 5 percent per year growth of the world econ­ of a Volvo plant in the United States which TAXING THE MNC omy. If MNC sales are compared to the gross will employ 1,500 workers. However, propo­ One day this summer the New York Times national products of various countries, 51 nents of the protectionist Burke-Hartke carried an article noting that the staff of of the world's 100 largest money powers are trade and investment bill seem to be voicing the European Commission, in a working pa­ MNCs and 49 are countries. as much objection to this kind of direct in­ per, had singled out taxation as the area in The MNCs are now doing about $500 billion vestment by foreign-based MNCs in this which MNCs were in sharpest con:fllct with worth of business a year. This is nearly one­ country as they did to the supposed export host st ates. The working paper noted that: sixth of the world's production, or more than of American jobs by investment abroad by Even leaving aside any problems with tax the gross national product of Japan. Each American-based MNCs. evasion, it is undoubtedly true that domi­ of the top 10 MNCs has annual revenues MNC operations have generally been quite ciliation in various countries, each with its larger than the gross national product of profitable. A Senate Finance Committee study own methods and rates and with independ­ two-thirds of the countries of the world. reports that 21 of 30 U.S. multinational firms ently conducted audits, ... provides open­ The foreign investment of MNCs has sur- made higher profits abroad than at home. ings for tax avoidance. CXIX--2313-Part 28 36724 EXTENSIONS OF REMARKS November 12, 1973 . The prices charged in a group's intercom­ -that same company established a new opera­ advantage of a dominant position," as the pany transactions and fees for industrial tion in the United States. Also, in case after Treaty of Rome puts it. property or management can be used as a case, an American MNC has made use of a Americans have been pleased at recent re­ means of reducing the tax assessment basis tax haven operation or certain provisions ports that the European Commission is ag­ or of consistently moving profits to coun­ of the U.S. tax law to escape much of what gressively enforcing the European "competi­ tries with favorable tax systems. would have been a fair burden of taxation. tion policy." We have not been so happy Heads of multinational undertakings For instance, the U.S. government does with European rules on government procure­ freely admit, however, that if tax avoidance not levy a tax on any U.S.-based MNC earn­ ment, which favor European companies and is not their raison d'etre or their main tugs until they are repatriated to the United give little regard to price competition. While source of profit, nevertheless they do logi­ States. This "deferral" of taxes allows the our own less stringent "Buy American" laws cally operate a tax strategy that best serves company to reinvest earnings abroad indefi· have popular appeal, there is a severe ques­ the interests of their firm. nitely and, as many tax lawyers point out, tioning of their prudence with regard to costs Merely by being true to themselves, the to really escape taxation completely. and benefits by many U.S. Congressmen and multinationals thus come into conflict with It is little wonder that representatives of government officials. the [host] states. foreign governments express the hope that Americans have also been pleased at re­ Thus, for instance, a Belgian subsidiary of we will not eliminate deferral, since it en­ ports that our own government is taking a a U.S.-based MNC might help the MNC take courages re-investment in their countries and stronger stand against monopolistic practices advantage of the lower tax rate in Switzer­ produces jobs and tax revenues. But why in this country. IBM, the world's 6th largest land by charging a higher than reasonable should we do this when there is no account­ MNC, has been found guilty under U.S. anti­ price for management services rendered to ing of exactly what benefits there are for trust laws of trying to monopolize the market the Swiss subsidiary of the same MNC, thus the United States from all of this, or for such for peripheral devices for its computers and reducing its own income proportionately­ goals as development in less developed coun­ is likely to pay millions of dollars in treble income which would have been taxed at a tries? damages for this. Also the Justice Depart­ higher rate than the Swiss subsidiary's in­ Even though the U.S. government does not ment's Antitrust Division has been reor­ come will. Some would call this just another tax foreign source income on a current ganized with a view to more attention to phase of the company's tax planning. basis-when earned-we are rather generous matters involving trade and MNC operations. U.S. Finance professor Sidney Robbins was in underwriting the losses of U.S.-based MNCs Nonetheless, U.S. efforts to apply our anti­ quoted in Fortune magazine as saying "there abroad. Generally, 48 percent of any loss trust laws to subsidiaries of U.S. MNCs have is enormous potential for saving taxes by ad­ incurred, even by an expropriation not cov­ met with resistance. This is another area in justing prices within the corporate struc­ ered by insurance, is allowed as an immediate which care must be taken to avoid the MNC's ture" but that the MNC had not yet fully deduction against U.S. tax liability. possible escape from any governmental exploited transfer pricing. Even by most conservative estimates, our jurisdiction. U.S. Treasury officials have indicated that tax breaks for foreign operations abroad­ In 1970, the OECD warned that, with the they are pleased with the progress which deferral, DISC (providing deferral for export­ rise of the MNC, has been made by the United States and related operations), the Western Hemisphere "The competitive pressures which hav• Germany in combatting the problem of Trade Corporation allowance (a reduced tax come from the dismantling of trade barriers transfer pricing by setting forth rules to be rate for these investments; 34 percent) and may gradually weaken and there is a danger used by the MNC's for transactions "not at others--cost the U.S. government at least that international mergers and growing fi­ arms length." This p::-oblem needs to be pur­ $675 million a year in lost tax revenues. nancial links between large companies in sued, however, to involve the cooperation of We may never know how much the U.S. different countries may lessen competition other countries. government has forgone in tax revenues in between foreign and domestic suppliers. If the MNC is to pay its fair share of the connection with the U.S. investments in "While the growth of multinational cor­ social costs of its operation, effective means Middle East oil, virtually all of which are porations and links across national frontiers must be worked out by governments to al­ now being nationalized. have been a major factor promoting ration­ locate the income of the MNC fairly among Several committees of the U.S. Congress alization and higher productivity, they also the different countries in which MNC sub­ are now or will soon be taking a very close provide increasing scope for monopolistic and sidiaries may be located. The governments look at whether these tax subsidies to for­ oligopolistic practices." of the world have a great deal of work to eign investment-much of which would un­ Economists such a.s Stephen Hymer are do in tightening up their tax rules and their doubtedly be made even if there were no sub­ warning that "direct foreign investment cooperation with one another if this is to sidies-are justified. For instance, how can it tends to reduce the number of alternatives be done--cooperation in such areas as the be argued that we must provide further tax facing sellers and to stay the forces of inter­ exchange of information, the enforcement breaks for domestic investment in order to national competition." of tax laws, the discussion of disputes, and encourage additional capital formation in Americans tend to think that we have a so forth. this country when, at the same time, we are very competitive "free enterprise" system in While the developed countries have made subsidizing the export of our capital, both this country, whereas the European and some good progress in these areas, and in through a bias in our tax laws in favor of Japanese governments permit various cartel achieving some harmonization of tax laws foreign investment and through the OPIC arrangements and even support them. This through means such as the tax treaty and insurance program? is of course not exactly the situation. The consultations in the OECD, a great deal re­ Minimal U.S. tax reform proposals would U.S. government provides a great number of mains to be done both in this field and with eliminate deferral and DISC and tighten up de facto subsidies to its industries. However, regard to agreements between developed the foreign tax credit, which is the U.S. it is very important that all governments countries and developing countries. vehicle for preventing double taxation of realize and realistically assess the dangers of Undue competition for the benefits of foreign source income. Other proposals the MNC as far as reducing competition and MNC home bases or foreign direct invest­ would actually penalize foreign investment raising prices goes. Another serious problem ment, as through tax forgiveness provisions by treating the foreign tax credit only as a in this area is the control by MNCs of alter­ or tax holidays, can only hurt the countries deduction. The U.S. Treasury has proposed native technologies, such as giant oil com­ of the world by eroding their tax base to the certain revisions in the tax laws relating to pany control of coal and uranium supplies advantage of the MNC. In all of these tax allowances for foreign losses and for opera­ as well. In view of the implications of this areas-including the consideration of border tions in foreign tax havens. fact, and the existing problem of world-wide or value-added taxes in some countries, as MNC'S AND THE CONCENTRATION OF ECONOMIC infiation, the need for attention to this area well as the possible adverse implications POWER cannot be over-emphasized. for foreign investment of European steps to­ The second major field of concern regard­ General Motors is the largest corporation ward integrating the corporate and personal ing the MNCs is the control of their vast in the world. It is a multinational corpora­ income tax but allowing tax credit only to economic power. While this is basically a tion, with about one-fifth of its sales abroad. domestic investors-a General Agreement on problem of jurisdiction and the application In its U.S. operations, controlling such auto Tax and Investment Policies, with a per­ of antitrust laws, the unique and growing "divisions" as Chevrolet, Buick, Pontiac, manent secretariat, could serve a very use­ economic power of the MNCs is of course at Oldsmobile and Cadillac, it has long enjoyed ful function. the heart of our concern about the political an extremely dominant position, verging on It has been estimated that the average power of these giant companies. monopoly, in the U.S. automobile industry, effective tax rate for the United States on In this area perhaps more than others the which has become a large segment of the foreign operations of U.S.-based MNCs is 5 governments of the world have been tardy U.S. economy. If it had not been for the percent. This compares with a statutory tax in acting. There is strong evidence that harm availability of Volkswagens, Toyotas, and rate of 48 percent for U.S. corporations. While has already been done in the form of lessened other small car imports, there would have it is perhaps reasonable that much of the competition, higher prices and lower quality, been no pressure on GM to produce any taxes paid by a corporation should go to and that now is the time to act to recoup small cars at all-since small cars yield GM the taxing jurisdiction where the company's lost ground. less profit. Therefore, without the competi­ operations are located, the United States As the attached table (table 2) shows, tion of the foreign imports, there would be is obviously quite generous in our tax treat­ much of the growth of the U.S.-based MNCs even fewer choices of relatively small cars ment of foreign source income. For instance, abroad is attributable not to new facilities on the U.S. market today than there are. the tax treatment for a company establish­ but to mergers and acquisitions of existing Further, our gasoline consumption and air ing a subsidiary operation in Mexico is likely companies. While bigness may mean eco­ pollution problems would be even worse than to be quite a bit more favorable than if nomic efficiency, it may also mean "improper they are. November 12, 1973 EXTENSIONS OF REMARKS 36725 Certainly there has traditionally been little holdings from weak currencies to stronger MNC for promoting development, rather than real competition for GM from the other ones could create a real crisis in the inter­ its potential for exploiting low wage rates and members of the U.S. auto industry oligopoly, national monetary system . . low environmental standards to its .own ad­ Chrysler and Ford. It is easy to see how a This fact of life has made even more vantage. further take-over by GM or another giant urgent the reaching of an early agreement on NEED FOR ATTENTION AND ACTION auto company of world-wide auto production a more flexible international monetary system could put consumers even further at the with adequate means for financing large As has been emphasized throughout this mercy-choice-wise and price-wise--of the short-term capital flows among countries. paper, the magnitude and significance of the MNC and the decisions of its corporate issues relating to the operations of the multi­ MNC'S AND DEVELOPMENT national corporation are far too great for us managers. With the current backsliding among the To make matters worse in its U.S. opera­ to do anything but turn our immediate at­ rich countries of the world in their commit­ tention to better cooperation among our tions, GM also controls mass transit divisions ment to aid the developing countries, private which make buses and other such vehicles. foreign investment has assumed a new im­ countries to resolve these issues. How could one expect much progress in the portance for the developing nations. A good way to start on this would be for us mass transit area from GM when its bread There would seem to be further steps the to set a date for an international conference and butter comes from selling more and United States and other countries could take on the creation of a General Agreement on bigger cars? to promote the kind of investment in devel­ Tax and Investment Policies. A solution suggested by some is to break oping countries which will really be of bene­ GM into its independent component divi­ fit to those countries as well as to the MNC, TABLE 1.-THE TOP 15 sions especially in the case of its mass transit such as the huge new agribusiness project MULTINATIONAL COMPANIES operations. Unfortunately, this suggestion under way now in Senegal. Thus far, some of has not been accepted by many government the tax and aid steps the United States has officials. taken with regard to development have not Number of Yet, given the resource limitations of this Totall971 Foreign countries in been very selective in their effect. The U.S. sales sales as which plant, which are daily becoming more and government and private businesses as well (billions of percentage subsidiaries more obvious, can this government and the could be helpful to developing countries by Company dollars) of total are located other nations of the world afford any longer providing technical assistance to these coun­ not to cooperate in making vast vested busi­ tries. One area that would seem to be ripe General Motors ______28.3 19 21 ness interests such as GM accountable to the for action is assistance to representatives of Exxon. ______public good? 18.7 50 25 these countries in the mechanics of negotiat­ Ford •• _------16.4 26 30 MNC'S AND MONETARY DISRUPTIONS ing with the skillful representatives-law­ Royal Dutch/ShelL ••• 12.7 79 43 General Electric ______IBM ______9.4 16 32 The Tariff Commission report cited above yers, accountants, econOinists, etc.--of the 8.3 39 80 notes that at the end of 1971 private corpora­ MNC. This kind of aid could benefit the MNC, Mobil OiL ______8.2 45 62 tions controlled some $268 billion in short by reducing suspicions and the likelihood of Chrysler------8.0 24 26 term liquid assets, with the lion's share con­ future action against foreign holdings, as Texaco.------7. 5 40 30 Unilever ------7. 5 80 31 trolled by multinational firms and banks well as the host country. ITT ______------__ 7.3 42 40 headquartered in the United States. This was Gulf OiL ______5.9 45 61 Like the area of antitrust, the role of the British Petroleum ____ .; "more than twice the total of all interna­ MNC in promoting development is a sorely 5.2 88 52 tional monetary institutions in the world at Philips Gloeilampen- neglected area. Narrowing the income gap be­ fa brieken. ______.; 5.2 NA 29 the same date." Standard Oil of The massive economic power of the giant tween nations is absolutely essential if any California ______.: 5.1 45 26 MNCs is reflected in their holdings of short­ of us are to enjoy peace and prosperity in the term liquid assets. Even unintentionally, a future. It would be most unfortunate if we movement of only a small fraction of these are not able to harness the potential of the Data: United Nations.

TABLE 2.-187 U.S. MULTINATIONAL CORPORATIONS: METHOD OF ENTRY INTO HOST COUNTRY [Number of affiliates and percentage)

Total affiliates Acquisitions 1 Acquisitions as percentage of total Pre-1946 1946-57 1958-67 Pre-1946 1946-57 1958-67 Pre-1946 1946-57 1958-67

Developed market economies: Canada ______-----•• ____ ------.--- ___ .; 537 414 639 158 187 370 29.4 45.2 57.9 Western Europe ______-----_------____ 1, 105 693 2, 754 256 194 1,193 23.2 28.0 43.3 SouthernJapan. ______hemisphere 2------152 185 511 30 57 240 19.7 30.8 47.0 17 43 198 5 17 53 29.4 39.5 26.8 Developing countries: Western hemisphere ______------______.; 508 735 1, 309 110 157 477 21.7 21.4 36.4 Asia and Africa 3_ ------103 176 491 17 23 109 16.5 13.1 22.2 TotaL ___ ------2,422 2, 246 5,898 576 635 2,442 23.8 28.3 41.4

t Acquisition refers to purchases by U.S. corporations of domestic companies previously under Source: Center for Development Planning, Projections and Policies of the Department of Eco­ local control. nomic and Social Affairs of the United Nations Secretariat, based on James W. Vaupel and Joan P. 2 Including Australia, New Zealand, Republic of South Africa, Rhodesia. Curhan, "The Making of Multinational Enterprise" (Boston, 1969). a Excluding Rhodesia.

REMARKS OF REPRESENTATIVE G. REMARKS OF REPRESENTATIVE G. V. Before beginning I would like to express V. MONTGOMERY AT LAUNCHING MONTGOMERY on behalf of Senator John Stennis his very OF U.S.S. SPRUANCE Thank you, Admiral Zumwalt, for that deep regrets that important business pend­ very generous introduction. It is not often ing before the Senate and especially the one has the honor and privilege of being Senate Armed Services Committee prevented HON. TRENT LOTT introduced by the Chief of Naval Operations. his being with us today. He really hated to OF MISSISSIPPI It has been my good fortune on several oc­ miss this important event. casions to talk with Admiral Zumwalt dur­ This occasion has been billed as the IN THE HOUSE OF REPRESENTATIVES ing appearances before our House Armed launching of the first of a new fleet of multi­ Monday, November 12, 1973 Services Committee and in less formal situ­ mission U.S. Navy destroyers. Actually, it is ations. I have always found him to be a man much more than that. This event represents Mr. LOTT. Mr. Speaker, on Novem­ of immense capabilities and knowledge. One the beginning of an entire new naval concept ber 10, 1973, a historical event occurred trait exhibited by you, Admiral, that is espe­ to preserve the integrity of the high seas at Pascagoula, Miss. The first of the pro­ cially appreciated is your willingness to al­ and ensure the defense of the free world. It posed 30 Spruance class DD-963 de­ ways speak your mind and let the chips fall also represents a revolutionary concept in stroyers was launched. This multipur­ where they may. You have been an in­ shipbuilding made possible by the dedication pose destroyer, with its sleek lines, vindi­ spiration to the officers and men serving un­ and hard work of my fellow Mississippians der you and they should be grateful for the and Alabamians that will result in a savings cated the supporters of the "shipyard of for the taxpayers over the long run. the future." As it touched water by mod­ many changes you have instituted on their behalf. Equally as important, this launching re­ ern launching techniques, Congressman minds us of the many men and women who Congressman Lott, Admiral Kidd, Admiral fought bravely and against superior forces G. V. "Sonny" Montgomery delivered the Johnston, Admiral Payne, Mr. O'Green, Mr. principal address and very succinctly put at times during World War II in order that Marandino~ Mrs. Spruance, Mrs. Bogart, my the free world might remain free. the launching in its proper perspective. fellow Mississippians, ladies and gentlemen. Mrs. Spruance, I believe your late husband 36726 EXTENSIONS OF REMARKS Novenz,be1· 12, 19;3 would have been very pleased to have known plexities of military procurement. The con­ their sovereignty or our intention to work that the first of the DD-963 class of destroy­ tracts held by Ingalls and its subcontractors for world peace from a position of benelovent ers is being named in his honor. In fact, the throughout America are a perfect example strength. To achieve these goals we must entire complement of 30 ships will be known of an extremely complex defense agreement. have a modern naval force of adequate size as the Spruance Class. As a former com­ While making these statements, I full well and composition to offset the growing capa­ mander of the first true destroyer, the USS realize that Ingalls has experienced prob­ bilities of our major potential adversary­ Bainbridge, Admiral Spruance might be a lems in meeting part of their contract on the Russia. little surprised to find that his namesake is LHA. But these have not been insurmount­ Detente with Russia and China is a con­ twice as long as the Bainbridge and can dis­ able problems and are problems that can be structive beginning toward a generation of place 7,800 tons fully loaded as compared expected on the shakedown cruise of any new world peace. But the words on paper out­ to a loaded displacement of only 590 tons for facility such as this new and modern lining detente must be backed-up by the the Bainbridge. shipyard. men and equipment signifying our deter­ Of course, the USS Spruance has many In fact, the USS Spruance is five and one­ mination not to be bullied into a position of other firsts. As I mentionued earlier, it is a half months ahead of the contract milestone weakness. Therefore, we must have the na­ new class of Navy destroyers developed to for launch. tional will to provide these men and equip­ maintain America's strength on the world In conversations I have had with Mr. ment within the financial capabilities of the seas and deter war into the 21st century. O'Green and Mr. Marandino, they have made United States. For by speaking from a posi­ This will be the first major combat ship in known to me their concern and the concern tion of strength, we will be able to translate the U.S. Navy to be powered with four marine of their company. But what is important is the pledges of peace into the realities of gas turbine engines making it possible to that they have taken steps to solve the prob­ peace. travel at speeds in excess of 30 knots. The lems of the past and improve on the efficiency The ship we launch today meets part of Spruance will have the most advanced sur­ of the yard. our requirements for men and equipment to face ship sonar operational in the Navy today. In addition to the leadership being pro­ make detente work. In addition to its major responsibility of vided by company management, I think it Mrs. Spruance, I am truly sorry that I antisubmarine warfare, this ship can be as­ is also important to stress the dedication of never had the opportunity to meet and know signed to bombard shore positions, support the 18,000 person labor force. They are a your husband personally. I know that he was amphibious assaults, escort military and true example of the hard work and dedication a great officer and a great American and merchant ships convoys, perform surveil­ that American industry has come to expect most of all a great husband and father. Just lance and trailing of hostile surface ships, of Mississippians, and those from neighbor­ as Admiral Spruance fought to regain free­ establish blockades and undertake search and ing states. dom in World War II, the USS Spruance will destroy operations. This class of destroyer These men and women are not so many play a leading role in preventing World War will certainly strengthen our position in time cards that have to be punched each day. III and maintaining America's position as a keeping the sea lines open for much needed They are flesh and bone with an emotional strong and free nation. oil coming to the U.S. involvement in their craftsmanship. I would Of importance to the cost conscious tax­ match their abilities with the work per­ payers of America is the fact that Litton formance of people in any other State in the ROBERT EWING THOMASON technology and expertise produced a ship Nation. I am proud of them and I am proud that will require a crew of only 250 officers of the role they are playing in our Nation's and enlisted men. This is less than 80 per­ defense. HON. J. J. PICKLE cent of the crew required for modern combat I would like to quote a part of a statement ships of similar size and lesser capability. made by Senator John Stennis concerning OF TEXAS The reduction in personnel alone is expected the LHA and DD-963 contracts following an IN THE HOUSE OF REPRESENTATIVES to save the Navy more than a billion dollars on-the-ground inspection made by the Sen­ Monday, November 12, 1973 at today's prices during the life of these new ator last December. I quote: ships. "I want to emphasize that these contracts Mr. PICKLE. Mr. Speaker, any person Nor have the creature comforts of the men come under a new method of building ships. who has served in Congress in the de­ assigned to the Spruance and future DD-963 There is some trial and error in it, there al­ pression years and the years that imme­ destroyers been forgotten. The ship is almost ways is in new things. diately followed, knows that Robert self-maintaining and the living and recrea­ "There may be some added costs-there Ewing Thomason served the Congress tion quarters for the men will be the most always is in things that are new. But I see modern and comfortable available, including clear evidence the Ingalls is not only build­ with great distinction. I believe he was carpeting and pleasing color schemes. ing these ships, but they are going to dem­ considered one of the top 10 Congress­ Much of this must sound like a scene from onstrate to the American people and to the men in the United States, and his a Jules Verne tale or some kind of miracle world that this is a sound way to build ships. achievements were so outstanding and ship. It is not science fiction, but it is part I think it will prove to be the best way to his abilities so recognized that he was of a major nationwide defense effort. build them at the least cost. These contracts appointed Federal judge. As noted by Ned Marandino, from the are going to be carried out in such a way as Over the years, I have heard many time that the smallest component part was to clearly prove that this yard and this sys­ stories about this outstanding jurist. I produced to the time of launching, people tem is a great asset to the Navy and there­ from 35 States, the District of Columbia and fore to the Nation-the American people­ have read his autobiography, and it is a 2 foreign countries have had a part in pro­ and to the entire free world." heartwarming American story that ducing this vessel. Since no one, absolutely no one, is able to proves that every young man has a Even though Ingalls has the total respon­ question the objectivity of Senator Stennis chance if he applies his abilities. sibility of producing these new destroyers, in matters dealing with military procure­ As a Member of Congress, I have also many of the component parts were sub­ ment, I feel his statement is ample evidence heard many stories about this great contracted to firms throughout the Nation. that Ingalls and Litton are performing in a judge, and I have pointed this out to So it's really not a completely true state­ manner consistent with their 35 years of many audiences in my district. Tile story ment to say that Ingalls Shipbuilding was outstanding shipbuilding experience. awarded the contract for the Spruance class In closing, I would like to elaborate briefly goes that when a critical vote presented of destroyers. The contract was actually on one of the original points I made. That itself on the floor of the House, Ewing awarded to American industry under the is this launching represents the beginning of Thomason would rise and remind his direct responsibility and supervision of an entire new naval concept to preserve the colleagues of the difficult vote just a few Ingalls, and I can't think of a better company integrity of the high seas and ensure the minutes off. Then he would say: to handle this challenge. defense of the free world. The leaders of the Congress on this com­ Let me digress for a moment to comment I might point out, Admiral Zumwalt, my mittee tell us that this is a good bill and that further on Ingalls Shipyard in view of the comments will be obviously familiar to you it is needed. The leadership of the House has unjustified criticism that has come its way. since they closely parallel the very strong likewise examined this bill carefully and Most of the critics have never been to testimony you gave before the Senate Armed have given it their approval. I am not an Ingalls shipyard and as far as I know have Services Committee this past April. I am expert in this particular field, and I do not never even taken the time to discuss their pleased that we share mutual views on na­ know all the facts related to it; but in a charges with any of the officials of Ingalls or tional defense and naval power. vote like this, I am going to put my faith Litton. In an era when the perception of national in my committee and my leadership. I be­ I don't deny anyone the right to make any power will carry great weight at the negotiat­ lieve we reach a point in government where charges they want to or bemoan the fact ing tables of the world, the military posi­ we must believe in somebody or someone. Be­ that Ingalls received the contract for the tion o:f that national power must remain cause I do believe in my leaders, I belleve also DD-963 destroyers and LHAs. But I am sick strong. in my country, and though I may have and tired of political office holders picturing Our economic and political interest de­ doubts, I am going to vote for the bill be­ our defense contractors as highway robbers. mand that we maintain a posture such that cause I want to believe in my country. Nor do I appreciate the fact that they play no enemy will question our ability to protect on the lack of knowledge of the American the vital sea lines of our commerce. Mr. Speaker, in this day and time, that taxpayers when they know full well that only Nor must our enemies or adversaries ques­ story must be told over and over. We a very few people fully understand the com- tion our resolve to support our allies and must believe in someone. We must believe November 12, 1973 EXTENSIONS OF REMARKS 36727 in our leaders. We must believe that few years. Whether we cooperate with our the State Department through 30 other gov­ proper study has been given. The words international neighbors because it is good, ernment agencies for six- to nine-month of Ewing Thomason were true then and or right, or necessary, we must get on with it training programs in the United States. while we are improving the quality of life at are true today. The commitment to these programs is sub­ home. We can also take some solace in know­ stantial. They are administered, in coopera­ When Judge Homer Thornberry was ing that the job is not ours to do alone. tion with thousands of volunteers and many sworn in as U.S. district judge in El Many other nations share with us the desire private organizations, by Bureau personnel Paso, I ftew to that happy occasion where and the capacity to help close this gap be­ in Washington and at our reception centers Judge Thomason presided. It was obvi­ tween the have and have-not peoples of the in Honolulu, Miami, New Orleans, New York, ous that everyone in the courtroom and world. The facts of international life today and San Francisco. Abroad they are admin­ in El Paso loved this man. He was pleas­ are that common sense and common sur­ istered, in cooperation with the United States ant, witty, thoughtful, and deeply phil­ vival dictate common action to solve com­ Information Agency, by the cultural affairs mon problems. officers in our embassies. In 50 countries osophical. He was a great American. The geometric increase in citizen involve­ there are binational commissions which have ment in world affairs has special significance responsibility for supervising the academic for the diplomat. It is a fundamental, irre­ exchange program. versible, and irresistible influence for peace. The State Department's small but catalytic PEOPLE-TO-PEOPLE DIPLOMACY­ Nations are less likely to deal with their dif­ exchange-of-persons program with 126 coun­ KEY TO WORLD UNDERSTANDING ferences in absolute terms when their cit­ tries stimulates constructive communication izens communicate and cooperate with each among leaders and future leaders in many other freely and frequently. fields here and abroad. It creates durable When people-to-people bonds and commu­ reservoirs of information, understanding, and HON. BILL ARCHER nications networks are more fully developed, empathy. It develops rewarding and lasting OF TEXAS there will be a greater readiness to communi­ contacts of key people of other countries IN THE HOUSE OF REPRESENTATIVES cate, to seek accommodation, and to negoti­ with their counterparts here. ate. The likelihood of international confron­ THE CONTRmUTION OF SERVICE ORGANIZATIONS Monday, November 12, 1973 tation will diininish, and prospects for In government and in the private sector, Mr. ARCHER. Mr. Speaker, the great peaceful solutions will be enhanced. This rationale governs the interest of the State there is much to be done. Service organiza­ advances in communication and travel Department in the furtherance of meaningful tions, such as Rotary International, through have indeed made the world smaller. The people-to-people exchange. its people-to-people programs, are doing an outstanding job. Rotary's international youth increased contact between the American DEPARTMENT-SPONSORED EXCHANGES people and citizens throughout the world exchange, involving 700 youths throughout When you think of the State Department's the world annually, is a model program with has led to an effective form of diplomacy. conduct of our international affairs, the ex­ considerable impact. This "new diplomacy" was emphasized in change-of-persons program does not come The Rotary Club matching program, which a recent speech delivered to the Rotary immediately to Inind. It is, nonetheless, a links Rotary Clubs in 150 countries with Club of Houston by Mr. Alan A. Reich, significant and important activity of the De­ counterpart clubs for direot Rotarian-to-Ro­ Deputy Assistant Secretary of State for partment. The Bureau of Educational and tarian relationships and shared se-rvice proj­ Educational and Cultural Affairs. I enter Cultural Affairs works constantly and quietly ects, is equally impressive. Rotary's world this excellent talk in the RECORD at this to improve the climate for diplomacy and community service program has helped peo­ international cooperation. The exciting, chal­ ple throughout the world. Through Rotary point: lenging job of the Bureau is to utilize its International's small business clinic program, PEOPLE-TO-PEOPLE DIPLOMACY-KEY TO modest funds and manpower to reinforce many individuals in less developed countries WORLD UNDERSTANDING the work of American individuals and organi­ have been helped to self-sufficiency and com­ (Remarks of Deputy Assistant Secretary of zations who want to help construct, a little munity contribution. State for Educational and Cultural Affairs at a time, the foundation of better relation­ Two other elements of the overall Rotary Alan A. Reich) ships with the rest of the world. It also co­ International outreach are especially mean­ Diplomacy has gone public. Foreign rela­ ordinates, as necessary, the activities of other ingful. First, the mere existence of Rotary tions is no longer the exclusive domain of the government agencies with international ex­ joining 750,000 leaders around the world is professional diplomat. In almost every coun­ change programs in substantive fields such a potent force for mutual understanding. As try of the world, foreign affairs communities, as health, education, social welfare, transpor­ your new Rotary International president, in varying degrees, have opened their ranks tation, agriculture, military traini.ng, and William C. Carter, stated at the Lausanne to public participation. It is a privilege to urban planning. Congress last month, "No country or empire meet with the Rotary Club of Houston, Having come not too long ago from the in the world ever had in its embassies and which, I understand, is the largest Rotary business world, I have a great appreciation consulates, so many outlets as Rotary Inter­ Club in the world, because you play an im­ !or what is being done for an investment of national has in its 15,659 clubs in 150 coun­ portant role in Houston's international out­ some $45 million annually. There are sev­ tries and geographical areas of the world." reach and leadership. eral major elements of the Department's ex­ Rotary is made up of leaders from all seg­ change program: I shall talk today about the importance of ments of society; this fraternal relation­ people-to-people diplomacy, the interest of The Fulbright-Hays exchange program ship-professional to professional, business­ the State Department in furthering it, and over 25 years has engaged more than 100,000 man to businessman, and so on-generates comment on the significant contribution of people in acadeinic exchanges. Annually, good will among millions throughout the your Rotary work. some 5,400 professors, lecturers, and scholars world. Many Americans ask why we should con­ are exchanged to and from the United States. The international visitor program brings cern ourselves with international problems CRIME CONTROL NO. 7 when we have so many serious domestic con­ to the United States about 2,000 foreign lead­ cerns demanding attention. There are sev­ ers and potential leaders annually for one­ eral good reasons for our getting "involved or two-month orientation programs. This in­ HON. EARL F. LANDGREBE with mankind": First of all there is common cludes nonacadeinic leaders and professionals, charity. Then there is a sense of common from Cabinet officers to journalists. One out OF INDIANA humanity. In addition, there is common of every 10 heads of state in the world today IN THE HOUSE OF REPRESENTATIVES has been a State Department exchange vis­ sense. Modern transportation and communi­ Monday, November 12, 1973 cations, not to speak of modern weapons, itor, as have some 250 Cabinet ministers of have brought our neighbors' problems to our other nations. Mr. LANDGREBE. Mr. Speaker, far The Department of State sends abroad doorstep. We have no choice but to become more than the police, who in most in­ involved, because if the problems next door annually several leading perforining arts groups and athletic stars; for example, in stances can act only after a crime has are ignored, they soon become our problems. been committed and they have been noti­ Poverty, illiteracy, hunger and disease rec­ the past year under this program the San ognize no nation's borders and travel under Francisco Symphony Orchestra and the New fied by the victim or witnesses, an armed no country's passport. It is not a matter of York City Ballet toured the Soviet Union; citizenry acts as a deterrent to crime the world's poor getting poorer while the rich one of America's leading popular singing and a force for the apprehension of crim­ get richer. The poor are getting richer, too. groups, the Fifth Dimension, performed in inals. Should guns be confiscated from Eastern Europe; Robert Lee Elder and the But their lot is improving so slowly that the private citizens, this enormously effec­ difference--the gap-between rich and poor Morehouse College Glee Club visited Africa; and the United States basketball and swim­ tive peacekeeping force would be gone, is widening, not closing. Unless some way and, in all probability, a wave of crime can be found to reverse this trend, those who ming teams just returned from tours to the are better off must one day suffer the hor­ People's Republic of China. would wash over the Nation, In order to rible consequences. Neither we nor our chil­ Some 150 prominent U.S. lecturers went illustrate the law-enforcement capabil­ dren will have the luxury of working on our abroad for six-week lecture tours in 1972. ity of privately owned guns, I ask that domestic problems if we do not succeed in Nearly 500 United Nations specialists se­ this article from the Tennessean, "Armed bringing about a climate of peaceful cooper­ lected by their home countries and funded Neighbors Thwart Burglary," be printed ation throughout the world during the next by the U.N., are programmed annually by in the RECORD. 36728 EXTENSIONS OF REMARKS N ove1nber 12, 1973 The article follows: President would make Albert automatically and ended with one m an sh ot t o death, an ­ ARMED NEIGHBORS THWART BURGLARY the next chief executive. other wounded, on e 16-year-old gang mem­ The Democratic majority of the House ber shot by a police officer, an d three gang (By George Watson Jr.) Judiciary committee is taking its own sweet members under arrest for murder. Three b\trglars discovered yesterday that it time about considering Ford, and the Senate The police were looking for four other doesn't take police to cause them trouble. Rules committee isn't moving much faster. youths, reportedly members of the Black A group of neighbors-all armed with Now the same House committee is driving Stage gang, and trying to reconstruct the guns-also can be bad news. ahead with a stack of resolutions to impeach events that led the gang members to shoot Mrs. Nancy Cooley, of 4020 Bernard Road, the President, making the most of the at two men as they stood arguing in front Joelton, said she and her husband, Flem, nation-wide roar of outrage that ensued of 607 West 140th Street. had gone to work early yesterday when three when Nixon fired special pTosecutor Archi­ According to the police, the dead man, men pulled into the driveway of their home bald Cox. Frederick Scott, 25 years old, of 1305 Amster­ and began their work. Albert has publicly cautioned the Judiciary dam Avenue, had gone to the West 140th "Mrs. Dot King, my nextdoor neighbor, saw panel against holding Ford as a "hostage" Street apartment of his sister, Minnie La­ them carry out my color television, a black while the impeachment campaign rolls on. Grath, to try to make peace between her and and white TV, a radio and vacuum cleaner," But Chairman Peter W. Rodino, the finest her estranged husband, James. said Mrs. Cooley. "Mrs. King then called my fiower of the Newark (N.J.) Democratic ma­ ARGUMENT STARTS husband and Carl Tinsley, a neighbor who chine, is under intense pressure from Nixon­ At the apartment, Mr. Scott and Mr. La­ runs a service station up the street." haters, in Congress and out, to "get" Nixon Grath found Mrs. LaGrath's boyfriend, Joe While the burglars went about their work, first and let Ford wait. L. Saunders. The three men started arguing, about 9: 30 a .m ., carrying the merchandise Rodino won re-election last year against and soon after midnight Mr. Scott and Mr. out of the Cooley home and putting it into two black opponents in his district, where Saunders went outside. their car parked in the driveway, Tinsley­ white voters have been reduced to a minor­ There, according to the police, they be­ armed with his pistol-headed to the Cooley ity. He is hearing threats that a strong black came involved in a dispute with seven teen­ home in a wrecker from his service station. candidate will try to take his House seat aged gang members. Mr. Scott was shot "As the men came out of the driveway away next year unless he goes along with fatally in the heart and Mr. Saunders was and started up the street, Tinsley and the impeach-Nixon drive, which is being wounded slightly in the back. another man blocked the street with their pushed by the Americans for Democratic Ac­ Witnesses to the shooting hailed a passing wrecker and so the men started backing tion, the Democratic Study group in the police patrol car. The officer, Thomas Mur­ down the street," explained Mrs. Cooley. House, and allied groups. ray, chased three youths into an alley. When Mrs. Cooley, who pointed out that she lives So Rodino, although anxious to co-operate one of them, John Martin, 16 years old, of on a deadend street, said the three men with the Speaker's efforts to cool off the radi­ 1910 Marmion Avenue in the Bronx, allegedly then "threw out all the merchandise over a cals, is only a figurehead carried along by made a threatening gesture, Officer Murray hillside at the end of the street." the violent partisans on his own committee. fired twice, wounding the boy in the back. Meanwhile, a number of other neighbors Rep. Tom Railsback, Dlinois Republican on He was admitted to Jacobi Hospital. armed with pistols and shotguns came up to Judiciary, has protested that the Democrats Officer Murray arrested the wounded the wrecker to join Tinsley and one of his on the panel are p1·essing their probe of "Wa­ youth and two others, Lawrence Brown, 16 workers. tergate-related" matters and other issues years old, of 614 East 140th Street in the "When the guys started back up the concerning "the President's conduct" with­ Bronx, and John Johnson, also 16, of 285 street," said Mrs. Cooley, "all my neighbors out bothering to consult the minority mem­ Cypress Avenue. All three were charged wit h held their guns on them until the police bers. homicide. arrived." The Speaker, who was born 65 years ago at Bug Tussle, a hamlet in the "Little Dixie" (From the New York Times, Nov. 4, 1973] region of Southeast Oklahoma, has no desire F'ROM THE POLICE BLOTTER ALBERT IS AGAINST POTENTIAL to be President. He has a heart ailment, and COUP is unhappy in his role as "the man only a One man was shot and killed and another heartbeat away from the Presidency." In wounded in the attempted holdup of Club times past he has had a problem resulting 83, 151 Lenox Avenue, near 118th Street. HON. EDWARD J. DERWINSKI from too many Washington cocktail parties. The police said the dead man, James Thomas, OF ILLINOIS How could his health stand up to the pres­ 43 years old, of 559 West 158th Street, was in the restaurant when two men wearing IN THE HOUSE OF REPRESENTATIVES sures of being the commander-in-chief in a confrontation with the nuclear power of the ski masks and brandishing pistols entered Monday, November 12, 1973 Soviet Union? How, for instance, could he and announced a holdup. Mr. Thomas strug­ meet with the National Security council at gled with the gunmen and several shots were Mr. DERWINSKI. Mr. Speaker, in my 3 o'clock in the morning, as Nixon did when fired, one of which struck him in the head, judgment, the deliberate delay in the he placed the U.S. armed forces on the alert killing him instantly. Another shot wounded confirmation of Vice Presidential­ to checkmate Soviet troops from intervening Alexander Brown, 30, of 987 Union Avenue, designate GERALD FoRD which has been in the war in the Middle East? the Bronx, in the abdomen. The police said the result of political thinking of the Mr. Brown was holding a .45-caliber revolver. The radicals pushing Albert for President He was taken in custody to Harlem Hospital, majority party in both Houses, is clearly don't care about that problem. Once he is where he was listed in critical condition. against the public interest. in the White House, he can nominate some good liberal-perhaps Sen. George McGovern . .. Donald Moses, 26, of 221-43 114th Road, A very interesting theory as to the of South Dakota-as his Vice President and Cambria Heights, Queens, allegedly shot his reason for this delay is the subject of an then resign. Thus the Democrats, although wife, Marlene, in the chest with a shotgun, article by columnist Frank van der overwhelmed by Nixon in the 1972 election, then held off the police for more than two Linden which I noted in the October 14 would seize the White House at last. hours before surrendering under a tear-gas issue of the South Harvey Illinois Star attack. His wife was reported in fair condi­ Tribune. This article was written a tion at Queens General Hospital. month ago yet some of the points are still BAN THE HANDGUN-I [From the New York Post] very pertinent. NEW JERSEY MAN FOUND SHOT TO DEATH The article follows: HON. JONATHAN B. B!NGHAM ON HIGHWAY ALBERT IS AGAINST POTENTIAL COUP OF NEW YORK ALLAMUCHY TOWNSHIP, N.J.-The death of (By Frank van der Linden) a man found with bullet holes in his head IN THE HOUSE OF REPRESENTATIVES WASHINGTON.-House Speaker Carl Albert on a highway here was under investigation is moving vigorously to block a scheme pro­ Monday, November 12, 1973 today. posed by radicals in his own Democratic State Police said they identified the man Mr. BINGHAM. Mr. Speaker, day after through finger-prints as Dominick Reo, 48, party to make him President of the United day the press reports felonious deaths by States by a Congressional coup d'etat. of Paterson. The Oklahoma Democrat is appalled by firearms. Most of these senseless homi­ the idea that the Democrats controlling Con­ cides could be prevented by the adoption BRONX STORE OWNER KILLED IN A HOLDUP; gress could place him in the White House of strict gun controls. The New York SUSPECT Is SEIZED by first impeaching President Nixon before Times on Sunday, November 4, included The owner o:f a dry cleaning business near there coUld be a vote on confirmation of three such instances, the New York Post the Bronx Zoo was shot and killed early Vice Presidential-designate Gerald Ford. two. The clips follow: yesterday morning in an apparent holdup It is not an entirely preposterous plot. (From the New York Times] attempt. Since the forced resignation of Vice Presi­ The two gunmen, who were waiting for dent Spiro T. Agnew on October 10, the FAMILY DISPUTE ATTRACTS GANG; ONE DEAD their victim when he arrived to open his Speaker has been next in the line of succes­ Two SHOT store at 4:45 A.M., fied after the shooting. sion to the Presidency. He will remain there (By Linda Greenhouse) Yesterday afternoon, detectives of the Ninth as long as Ford's nomination is stalled in A family dispute in the South Bronx early Homicide Squad said. they had one suspect committee; and any tragedy befalling the yesterday morning spilled out into the street in custody. November 12, 1973 EXTENSIONS OF REMARKS 36729 The dead man was Joseph DiGioia, 47 municipal utility networks and with a mini­ receive more than 120 percent of the years old, of 4160 Digney Avenue in the Wake­ mum of external energy requirements. amounts they received in 1973. field section of the north Bronx. He had MIUS has evolved as the ultimate or inevi­ operated a dry cleaning business at 2143 table result of separate projects backed by This change_in the formula will per­ Prospect Avenue, at East 181st Street, for the various agencies involved where waste mit the changes in population which about five years. treatment has been integrated, say, with have taken place since 1960 to be more The police said he had been shot once heat generation. HOD recently began opera­ accurately reflected both between States in the leg and twice in the head and that tion of a Total Energy system plant in Jersey and within States. For the interest of he might have been tortured with his own City, N.J., which will provide electricity, heat, Members, I am reproducing below a table knife, which was found at the scene. hot water and air conditioning for a planned which compares how much each of sev­ The police found Mr. DiGioia's body in the community project embracing some 488 resi­ eral major counties would receive under middle of the store, but also found blood dential apartment units, schools and com­ at the back of the room near a hidden safe. mercial facilities. Experience gleaned from the provision in H.R. 8877 compared with They theorized that the gunmen had tried to the Jersey City demonstration will be fed how much they would receive under the force Mr. DiGioia to open the safe and that into the more ambitious MIUS effort. provision contained in my motion to re­ he had refused. HOD officials emphasize that the MIST unit commit. A woman in-the apartment house next to will not be a prototype MIOS. It is a small­ TITLE I -ESEA Mr. DiGioia's store said that crime had been scale effort to integrate the necessary hard­ increasing recently and that there had been ware and mechanical processes to provide the (All fi gures are in thousands of doll ars) four robberies in her building in the last desired outputs at a level sufficient to meet month. Asked for the name of the neighbor­ the needs of about 100 people. Fiscal year H R 8877 Qu ie hood, she replied: "I don't know, I just call it The system is to be installed in a labora­ County and State 1973 provisio n proposal a bad neighborhood." tory at the Johnson Center where the neces­ sary typical inputs are available, such as Mr. DiGioia, along with his wife, 16-year­ Mobile, Ala ______$1, 876 $2, 158 $2,356 old stepson, and 3-year-old daughter, had solid and liquid wastes. As tests progress, Maricopa, Ariz ______3, 557 4,090 4, 226 moved to Dlgney Avenue from the South new parameters will evolve for a second los Angeles, CaliL ___ 45, 181 51, 958 55, 156 phase, the actual design, construction and San Diego, Calit______5, 505 6, 331 7, 348 Bronx about a year ago. Their new home was Denver, Colo ______3, 256 3, 745 3, 942 the top floor of a two-family house in a demonstration of a full-scale MIOS. New Haven, Conn _____ 3, 459 3,978 4,187 pleasant neighborhood near the Westchester Government engineers involved in the New Castle, DeL ____ 1, 481 1, 703 1, 899 Dade, Fla ______3, 619 county line. MIOS project have long held the idea to be Fulton, Ga ______4,162 5,132 technologically feasible. HOD's MIUS project 3, 750 4, 313 4, 636 A neighbor there said that violence was Cook, Ill ______43, 938 50, 529 56, 590 virtually unknown in the area and that director, Jerry Leighton, pointed out that no St. Clair, Ill ______3, 722 4, 280 4,370 everyone on the street was shocked and new technology is needed for MIOS. Each lake, lnd ______3, 920 3, 358 4,289 Polk, Iowa ______saddened by Mr. DiGioia's murder. element within the conceptual network has 1, 221 1, 404 1, 612 already been proved feasible. Sedgwick, Kans ______1, 706 1, 962 2, 361 Jefferson, Ky ______3,197 3, 676 4,434 Leighton came to HOD from NASA where Orleans, La ______4, 306 4, 952 6, 845 he had been a project engineer on the Apollo Cumberland, Maine __ _ 943 1, 084 1, 274 Prince Georges, Md ___ 1, 649 1, 897 program. He noted that the challenges aris­ Dukes, Mass ______2, 352 UTILITY SYSTEM ing in the Apollo project did not involve the 2, 506 2, 882 3,179 Wayne, Mich ______22, 254 25, 592 27, 430 development of new technology. Like MIUS, Hennepin, Minn ______4, 404 5, 065 6, 679 the Apollo project was the integration of Jackson, Miss ______2, 273 2, 614 3,092 HON. OLIN E. TEAGUE existing technology. St. louis City, Mo ____ _ 5, 074 4, 835 6, 852 Cascade, Mont______299 344 379 OF TEXAS Government officials are understandably Douglas, Neb ______1, 956 2, 249 2, 437 IN THE HOUSE OF REPRESENTATIVES elated about the MIUS concept. By utilizing Clark, Nev ______540 621 733 energy generated from waste, MIUS would Essex, N.L ______10, 996 12, 645 13, 262 Bernalillo, N. Mex ____ 1, 361 1, 565 Monday, November 12, 1973 make minimal demands on outside energy Bronx, N.Y ______2,167 resources. At the same time MIUS will con­ 37,241 42,827 50,269 Mr. TEAGUE of Texas. Mr. Speaker, Kings, N.Y------57, 507 66,134 73, 035 sume wastes that might otherwise pose an Cass, N. Oak ______180 207 225 the Johnson Space Flight Center in environmental pollution threat. Cuyahoga, Ohio ______9, 792 11, 261 14, 283 Summit, Ohio ______Houston, Tex., has undertaken an im­ Economists point out that even if MIOS I, 912 2, 199 2, 567 Oklahoma, Okla ______2, 349 2, 701 2, 827 portant project in the conservation of proves to be a technological success, the Multnomah, Oreg _____ 2, 557 2, 940 3, 107 energy. Applying the expertise of the biggest hurdle to overcome in realizing the Philadelphia, Pa ______20, 752 23, 865 31 , 375 national space program, this project is benefits will be in commercializing the con­ Providence, R.L _____ 3, 564 4, 099 4,178 cept. To be commercially feasible, MIUS will Pennin~on, S. Oak ___ 257 296 401 designed to provide new means to con­ Bexar, ex ______5,177 5, 953 6, 279 serve and utilize resources in our daily have to overcome both regulatory and finan­ Harris, Tex ______6, 314 7, 261 8, 686 cial barriers built into the existing public Salt Lake, Utah ______1, 666 1, 916 2, 078 living. Because of the importance of this and investor-owned utility systems. Fa irfax, Va ______466 535 1, 060 article, I am including it in the RECORD Richmond, Va ______2, 304 2, 649 2, 831 King, Wash ______3, 728 4, 288 4, 724 for the review and consideration of my Milwaukee, Wis ______5, 039 5, 795 7, 395 colleagues and the general public: Laramie, Wyo ______171 197 283 NASA To DEVELOP AND TEST INTEGRATED RECOMMIT THE LABOR-HEW AP­ UTILITY SYSTEM Note: Col. 1 is based on actuall973 HEW allocation of $1,600,- Next spring the Johnson Space Flight Cen­ PROPRIATIONS BILL TO OBTAIN 000,000. Cols. 2 and 3 are based on $1,800,000,000, the amount ter in Houston will hook up the first inte­ EQUITY FOR TITLE I CHILDREN contained in conference report on H.R. 8877. grat ed utility system. The laboratory scale test system is designed to assess the feasi­ The provision contained in the confer­ bility of large-scale modular integrated util­ HON. ALBERT H. QUIE ence report on the Labor-HEW appro­ ity systems. These systems could serve highly priations bill has some very strange ef­ concentrated population centers, such as OF MINNESOTA fe-cts. By holding local districts to 115 hi-rise residential and commercial buildings IN THE HOUSE OF REPRESENTATIVES percent of the amount they received in and high-density housing projects. Monday, November 12, 1973 1973 after the first continuing resolution The laboratory model, called MIST (for had no LEA ceiling, only a State hold modular integrated system test), is being Mr. QUIE. Mr. Speaker, as I have in­ harmless, some school districts will re­ built by the Hamilton Standard Division of dicated, I intend Tuesday to offer a mo­ United Aircraft Corp. under a $700,000 con­ ceive virtually no funds during two quar­ tion to recommit the Labor-HEW con­ ters in fiscal 1974. The provision in my tract awarded by the National Aeronaut ics ference report to conference with in­ and Space Administration. motion to recommit will provide a great NASA and other government agencies, such structions to return to the House with a deal more equit~. For example, here is as the Atomic Energy Commission and the better formulation for the distribution of what would happen to a selected number Environmental Protection Agency, are co­ funds under title I of the Elementary of counties: operating in a broad-scale project with the and Secondary Education Act. Specifi­ Department of Housing and Urban Develop­ cally, I will ask that the language con­ 1st quarter H.R. 8877 Quie ment to develop and promote the concept of tained in amendment 32 in the confer­ County and State allocation provision amendment a modular integrated utility system (MIUS). ence report be deleted and that the con­ Such systems envision the integration of Comanche, Okla ______915, 000 450, 000 708, 000 w ater supply and sewage processing, solid­ ferees be instructed to report back a bill Hennepin, Minn ______6, 800, 000 5, 000, 000 6, 700, 000 waste incineration, electric power generation giving local school districts 90 percent of Dakota, Minn ______498, 000 292, 000 484,000 the amount they received in 1973 and Crockett, Tex ______31, 000 15,000 27,000 and heating and cooling from a self-sustain­ Dallas, Tex ______6, 400, 000 4, 800,000 5, 500,000 ing network. Utility subsystems would be permitting local school districts to re­ Kent, Tex ______24,000 12,000 21,000 Chattahoocee, Tenn __ _ 77, 000 mechanically integrated in modules that ceive as much as they are entitled to pro­ Elmore, Idaho ______20,000 58, 000 could function independently of area-wide viding that States in the aggregate not 88,000 43,000 88, 000 36730 EXTENSIONS OF REMARKS November 12, 1973 RESULTS OF FOURTH ANNUAL A full 61 percent feel that the Federal oil pipeline? Yes, 72 %; No, 13%; Undecided, PUBLIC OPINION POLL Government should help the Nation's 15 %. railroads stay in operation. CAPITAL PUNISHMENT Regarding the economy, 59 percent Do you favor a Constitutional amendment HON. GUS YATRON to permit passage of st-ate laws reinstating believe that no Government regulation is capital punishment? Yes, 82 %; No, 11 %; Un­ OF PENNSYLVANIA necessary since supply and demand decided, 7%. IN THE HOUSE OF REPRESENTATIVES should determine wages and prices under CONSUMER PRODUCTS Monday, November 12, 1973 a completely free market economic system. Would you be. willing to pay more for prod­ Mr. YATRON. Mr. Speaker, I have to­ ucts if their manufacture, use and p-ackag­ Sixty-seven and fifty-eight percent re­ ing could be made pollution-free? Yes, 47 %; day released the results of my annual spectively feel that the United States No, 35 %; Undecided 18%. public opinion poll which had been sent should discontinue foreign military and NON-PUBLIC SCHOOLS to the residents of the Sixth Congres­ economic aid, while 68 percent feel that sional District. The questionnaire re­ Do you favor federal tax credits to defray we should continue foreign humanitarian part of the cost of tuition paid by p-arents to quested the opinions of my constituents aid programs. send their children to non-profit, non-public on current issues facing the Congress and A full 60 percent feel Federal funding elementary and secondary schools? Yes, 46%; Nation. More than 47,000 responses have should be approved for day-care and No, 51 %; Undecided, 3%. been received. child development programs. RATI.ROADS This response, which is well above the Fifty-seven percent believe that the Should the federal government, through number who usually participate in polls Federal Government should approve a increased financial assistance, help the na­ of this kind, clearly indicates that the national health insurance program for tion's railroads stay in operation? Yes, 61%; people of Berks, Schuylkill and North­ all Americans. No, 26 %; Undecided, 13%. umberland Counties are deeply inter­ A full 70 percent feel that the United PRIORITIES ested in the major issues of the day and States should continue to enter into eco­ 1st, Inflation; 2nd, Tax Reform; 3rd, Wel­ are eager to convey their views to their nomic and cultural trade agreements fare Reform; 4th Crime; 5th, Consumer Pro­ elected officials. Of the many thousands with China and Russia. tection; 6th, Drug Abuse; 7th, Education; who replied, hundreds amplified their 8th, Military Defense; 9th, Mass Transit; lOth Eighty percent feel that legislation Rural Development. answers with comments detailing the should be enacted to limit the Presi­ reasons for their responses. dent's warmaking powers in undeclared ECONOMY It was evident from this questionnaire Which of the following courses do you wars. think the federal government should pur­ that inflation is of high concern. In ad­ Regarding the energy crisis, top pri­ dition to the preference of the people of sue regarding the economy? ority action included a search for new 59 % feel we should let supply and demand the Sixth District that inflation is a prob­ energy sources, more efficient use of fuel determine wages and prices under a com­ lem of the highest priority, separate com­ by machines and increased usage of coal pletely free-market economic system. ments on this subject were extraordinary, while increased atomic powerplant con­ 14% feel we should continue with tempo­ I could not agree more with the residents struction, increased crude oil imports, rary wage/price freezes like those we have of the Sixth District and have sponsored had since August 1971. and fuel rationing received the lower 27% feel we should begin a. price control many efforts to reduce the infiation priority ratings. which has been reducing the income of program where government determines fair A phenomenal 94 percent feel that a wages and prices periodically. all Americans. wage earner's investment in his private FOREIGN AID We know that the strength of our Gov­ pension plan where he works should be ernment is dependent upon the existence Should the federal government continue: protected by Federal legislation. a. foreign military aid programs? Yes, 20%; of procedures to promote the regular ex~ Eighty-five percent feel that Congress No, 67%; Undecided, 13%. change of views between Government should increase its efforts to help the b. foreign economic aid programs? Yes, representatives and their constituents. handicapped while only 45 percent be­ 30%; No, 58%; Undecided, 12%. This questionnaire is one of my many lieve that veterans should be allowed to c. foreign humanitarian aid programs? Yes, efforts to involve everyone in this use GI bill education benefits at any 68%; No, 22%; Undecided, 10%. process. time during their lives. CHXLD CARE I interpret the results of the poll as This public opinion poll has proved to As a means of providing mothers presently follows: be extremely useful in measuring more on welfare with an opportunity to become Significant numbers approved infla­ precisely the attitudes of my constitu­ self-supporting, do you favor the proposal tion tax and welfare reform, crime, and ents on some of the major problems fac­ that the federal government fund day-care co~umer protection as the top priority and child development programs for pre­ ing Congress. I know it will help me pro­ school and school-age children? Yes, 60%; items with education, drug abuse, mass vide the people of the Sixth Congres­ transit, military defense, and rural de­ No, 33 %; Undecided, 7%. sional District with effective representa­ HEALTH CARE velopment receiving the lowest priority tion in the weeks and months ahead. votes. Health care costs have increased dramatic­ While it is not expected that everyone ally in recent years to the level paying A full 88 percent feel that the United will agree on every issue, it is hoped that for adequate health care is beyond the reach States should not provide economic as­ we can all agree that the process of ex­ of many people. Should the federal govern­ sistance for the rebuilding of North Viet~ changing views is healthy and should be ment consider a National Health Insurance nam. encouraged. I feel that, through my Program to cover all Americans? Yes, 57%; Sixty-two percent feel that mass tran­ newsletters and questionnaires, this No, 34%; Undecided, 9%. sit facilities would provide a partial solu­ goal is reached and everyone's interests TRADE tion to the energy crisis and that they are served while permitting me to be Do you favor further economic and cultural would use these services. more responsive to the needs of the peo­ trade with China and Russia? Yes, 70 %; No, Nearly three-quarters feel that con­ ple in the sixth congressional district. 21 %; Undecided, 9%. struction of the Alaskan oil pipeline Reproduced below are the full ques­ WAR POWERS should proceed. tionnaire results: Our Federal form of government is based An overwhelming majority of 82 per­ RESULTS OF THE POLL upon the Separation of Powers between the cent feel that capital punishment of three branches of government-the Judicial, RECONSTRUCTION AID the Legislative, and the Executive. Do you criminals should be adhered to strictly. Should the United States provide economic favor legislation which would restore this Forty-seven percent would be willing assistance for the rebuilding of North Viet­ balance by prohibiting the President from to pay more for products if their manu­ nam? Yes, 7%; No, 88%; Undecided, 5%. committing American combat forces beyond facture, use and packaging could be made MASS TRANSIT a period of 120 days without the conse~t of pollution-free. As a partial solution to the energy crisis, Congress? Yes, 80 %; No, 14%; Undec1ded, Forty-six percent feel that Congress would you use a mass transit system to travel 6%. should approve Federal tax credits to to and from work? Yes, 62%; No, 28%; Un­ ENERGY CRISIS defray the cost of tuition paid by parents decided, 10%. What do you think the government should whose children attend nonpublic schools, ALASKAN OU. PIPELINE do to combat the energy crisis? while half disapproved of such a tax Would you support Congressional action 1st, search for new sources of energy, such deduction. to authorize the construction of the Alaskan as solar energy; November 12, 1973 EXTENSIONS OF REMARKS 36731 2nd, try to eliminate wastefulness by in­ States negotiator, told members of the Gen­ hope that it will receive serious consid­ creasing the efficiency of machines which use eral Assembly's Political Committee. And eration by the House of Representatives petroleum products for fuel; Aleksei A. Roshchin, the Soviet member, re­ as a way out of our present crisis of na­ 3rd, use more coal, America's most abund­ called that he had differed with her on many ant resource, in the best possible way; occasions, but that her contributions had tional leadership. 4th, increase atomic energy plant construc­ been appreciated. I do not use the word "crisis" lightly. tion; Mrs. Myrdal was the "conscience of the On Wednesday the President indicated 5th, increase crude oil importation; and disarmament movement," Masahiro Nishi­ that he would not quit because his 6th, begin a program of fuel oil and gaso­ borl, the Japanese delegate, declared. mother told him never to quit. As admi­ line rationing. The 71-year-old diplomat and her husband, rable as this advice may have been, the PENSIONS the economist Gunnar Myrdal, are going to President certainly did not pass it on to Should the Congress approve legislation the Institute for Democratic Studies at Santa Barbara, Calif., each to write a book. former Vice President Spiro Agnew when to protect a wage-earner's investment in his it became clear that for Mr. Agnew tore­ private pension plan and allow him to take Mrs. Myrdal, who held the rank of Minister his contributton when he leaves the em­ of State, has been Sweden's representative on main in office under the cloud of criminal ployment of one company to begin wor_k in the 25-member disarmament conference, indictment would be an unpatriotic act another? Yes, 94 %; No, 3 %; Undec1ded, which ended its 1973 session in Geneva with because of the harm that would be 3 %. most members complaining that it had caused the office of Vice President. How HANDICAPPED reached virtual paralysis because of a dead­ much more harm is being caused our Should the Congress increase its efforts to lock between the Soviet Union and the United Nation by the cloud that now hangs over help the handicapped by providing more States. Mrs. Myrdal, speaking in the committee, the office of President? Yet Mr. Nixon funds for rehabilitation and vocational refuses to resign. education programs? Yes, 85 %; No, 6 %; Un­ said that there had been disquieting reports that the two superpowers were about to de­ I believe the American people, in their decided, 9 %. mail to the Congress, through the Gallup VETERANS velop tactical nuclear weapons that could be used in much the same way conventional poll, and in the voting booths last Tues­ Should the time-limit on the use of educa­ arms are used by infantry and artillery units. day, have declared their loss of faith in tion benefits for Vietnam veterans under the "Such a development would drastically ag­ Mr. Nixon and his administration. We GI Bill be eliminated so that veterans could gravate the nuclear threat against nonnu­ go back to school with federal assistance at have begun impeachment proceedings in clear weapon states everywhere," she said. the Committee on the Judiciary, but this any time during their lives? Yes, 45 %; No, "Most important as a question of prin­ 46 %; Undecided, 9 %. ciple, is, of course, that an introduction of process will of necessity move slowly. such mininuclear weapons would blur the Positive action on my resolution would distinction between conventional and nuclear show the President that his resignation weapons," Mrs. Myrdal said. "We are strongly would be in the greater national interest THE MILITARY MAW-PART VII of the view that an absolute 'firebreak' must than a lengthy impeachment proceed­ be kept between nuclear and conventional ing. I place the text of my resolution in war." the RECORD at this point accompanied by Mrs. Myrdal said she was encouraged that an article which I wrote for the New York HON. PATRICIA SCHROEDER the United States was moving toward rati­ OF COLORADO fication of the Geneva protocol that prohibits Amsterdam News setting forth the rea­ sons which motivated my introduction IN THE HOUSE OF REPRESENTATIVES the use of all biological and chemical weap­ ons. But she also expressed concern over of the resolution: Monday, November 12, 1973 reported American plans to produce a lethal RESOLUTION Mrs. SCHROEDER. Mr. Speaker, in nerve gas by a new method that "might es­ Resolved, Whereas the President's action cape all attempts at control." in summarily dismissing the Special Prose­ her last speech before the United Na­ She said she was referring only to such tions as Sweden's top disarmament ne­ cutor caused an unprecedented outpouring reported plans for production of binary nerve of public demand for impeachment; and gotiator, Mrs. Alva Myrdal blamed the gas in the United States because the United Whereas the President of the United States United States and the Soviet Union for States was the most open of the major powers is presently under investigation to deter­ lack of progress toward genuine disarm­ in disclosing its plans, suggesting that other mine his possible involvement in impeach­ ament at the 1973 session of the Con­ countries might also be considering such pro­ able offenses; and ference of the Committee on Disarma­ duction. Whereas impeachment resolutions and The new method mixes two nonlethal gases resolutions of inquiry into grounds for im­ ment. She also warned of dangers to when they are fired in a. shell, producing a. world peace in the development of tac­ peachment have been introduced into the lethal gas. House of Representatives with the cospon­ tical nuclear weapons and binary nerve "We must issue a call for fresh action in sorship of more than 100 members of the gas weapons. the United Nations against the development House; and In August, I attended the CCD and of binary chemical weapons," Mrs. Myrdal Whereas the Judiciary Committee is pres­ felt the same frustrations expressed by said. ently investigating to determine whether the Mrs. Myrdal. While I was there Mexico, Her recurrent theme, however, was that President has violated his oath of office and Sweden, and Brazil all publicly criticized superpowers should agree to "qualitative dis­ engaged in high crimes and misdemeanors; armament"-freezing the development of and the Conference for failing to produce any new weapons. This is the real key to disar­ kind of agreement in the 2 years of its Whereas the name of Gerald Ford was sub­ mament, she said, adding: "May I end this mitted by the President prior to the initia­ life. The SALT talks should make it clear last official statement of mine by asking my tion of impeachment proceedings by the agreements can be reached only if this colleagues: When is some action for disarm­ House; and country shows the way. Unless we begin ament to start in earnest?" Whereas the order of priority for the con­ to contribute some positive proposals, sideration of impeachment and the consid­ particularly in the area of chemical eration of confirmation of the Vice Presiden­ weapons, it appears our attendance at tial nominee by the Committee on the Judi­ future sessions of the Conference will WHY THE PRESIDENT SHOULD ciary has not been Constitutionally estab- lished; and - merely be an empty gestw·e. RESIGN Whereas Gerald Ford has publicly indi­ Following is a report from the New cated that he does not desire to serve as York Times on Mrs. Myrdal's speech: HON. CHARLES B. RANGEL President; and MRs. MYRDAL, LEAVING U.N., WARNS OF OP NEW YORK Whereas the impeachment, resignation or NEW WEAPONS the incapacity of the President to continue (By Kathleen Teltsch) IN THE HOUSE OF REPRESENTATIVES in office would cause the succession to the UNITED NATIONS, N.Y., Nov. 10.- Mrs. Alva Monday, November 12, 1973 Presidency of the Speaker of the House, Carl Myrdal gave her last speech as Sweden's top Albert, a member of the Democratic Party Mr. RANGEL. Mr. Speaker, last Tues­ whose Presidential nominee was defeated in disarmament negotiator this week, blaming day I introduced House Resolution 684 the United States and the Soviet Union for the last National election; and lack of progress toward genuine disarma­ calling upon President Nixon to resign. Whereas the facts and circumstances sur­ ment. I am pleased that many of my colleagues rounding the investigation of impeachable In response, she received a chorus of trib- have publicly announced or privately conduct by the President of the United States has adversely affected the ability of the Pres­ utes including two from her main targets. informed me of their support for this ident to effectively lead both at home and "I bear many scars testifying to her effec­ resolution. I will soon be reintroducing abroad; and tiveness," Joseph Martin Jr., the chief United the resolution with cosponsors and I Whereas this ability will be further im.- 36732 EXTENSIONS OF REMARKS November 12, 1973 paired during prolonged impeachment pro­ The people have just as surely rejected Patricia Meyers, regional housing man­ ceedings; Mr. Nixon as they elected him last Novem­ ager, and the Reverend Aloysius Jezew­ Therefore, be it resolved by the House of ber, and we have reached a point where Representatives that it is the judgment of President Nixon, like former Vice President ski, of St. Anthony's Roman Catholic the House that the President should resign Agnew, must decide that his resignation is Church. from office. required in the national interest. Mr. Speaker, on behalf of these dedi­ Be it further resolved that prior to said If he does not resign, impeachment pro­ cated people and my colleagues here in resignation, the President send forthwith to ceedings will go forward in the Judiciary the House I extend to the new residents the House of Representatives a candidate Committee. But his resignation now appears of the Franklin D. Roosevelt Apartments other than Gerald Ford to be considered as to be the most immediate and desirable my best wishes for a long and happy life a nominee to succeed him as President upon route to resolving this national crisis. confirmation by both the House of Repre­ in their new home. sentatives and the United States Senate.

THE NIXON CHOICE: RESIGN OR BE NEEDS OF SENIOR CITIZENS TRIPLE PLAY BY RUSSIANS IMPEACHED Congressman Charles B. Rangel, repre­ sentative for Harlem and the West Side, is HON. JOSEPH M. GAYDOS HON. ANGELO D. RONCALLO a member of the House Judiciary Committee OF PENNSYLVANIA OF NEW YORK which will conduct any investigation into IN THE HOUSE OF REPRESENTATIVES impeachment proceedings against the Presi­ IN THE HOUSE OF REPRESENTATIVES dent of the United States. Monday, November 12, 1973 Monday, November 12, 1973 This article is the first of a series con­ Mr. RONCALLO of New York. Mr. cerning impeachment which Congressman Mr. GAYDOS. Mr. Speaker, the Alle­ Rangel is writing for the Amsterdam News. gheny County Housing Authority in Speaker, on Monday of last week, I re­ western Pennsylvania once again has ceived advance information about a truly (By Charles B. Rangel) awesome story to be published in the Last week the Judiciary Committee of the visibly demonstrated its awareness and House of Representatives met to decide on concern for the needs of the senior Aviation Week and Space Technology procedures to be followed in its considera­ citizens. magazine. I immediately brought the tion of the several impeachment resolutions The authority, under the able leader­ story to the attention of the chairmen that have been referred to the Committee. ship of Mr. James Knox, executive di­ of the Senate and House Committees on To date, 97 members of the House Of Repre­ rector, recently dedicated its eighth Armed Services and on Tuesday, after sentatives have either introduced or co­ high-rise apartment building for elderly publication of the article, I issued a press sponsored resolutions calling for the im­ residents, the Franklin D. Roosevelt release on the subject. peachment of the President. The subject is indeed a frightening In a series of votes that went strictly along Apartments, in Homestead, Pa., located party lines (the 21 Democrats on the Com­ in my 20th Congressional District. one. A triple-prong Soviet threat has mittee for, the 17 Republicans on the Com­ I had the privilege of participating in been revealed with the presence of nu­ mittee against) the Committee voted to give the dedication of this new 11-story high clear warheads on the Russian Scub mis­ chairman Peter Rodino full subpoena power structure, built at a cost of some $2 siles in Egypt aimed at Tel Aviv; a beef­ to pursue all evidence related to the im­ million, which includes 60 efficiency and ing up of Russian artillery in Guan­ peachable offenses charged against the presi­ 40 1-bedroom units as well as a large, tanamo Bay and Cuban patrol boats out­ dent. bright community room. fitted to carry Russian Styx surface-to­ Although some of us on the Committee felt surface antiship missiles; and the mass­ that our investigation of impeachment Despite its impressiveness, the build­ should come before any action on the Presi­ ing itself is not important. What it rep­ ing of 194,000 North Vietnamese troops dent's nomination of Gerald Ford, all of the resents is important. That structure, and 750 Soviet tanks at Quang Tri. Republican members and some of the Demo­ constructed of brick and mortar and While national security will probably crats urged swift action on the Ford nomi­ steel, is a monument to what can be done not merit a detailed elaboration of this nation and the Committee voted to proceed for people if government at all levels, story, I do feel the terrible potential of with both simultaneously. local, county, State, and Federal, work these actions should be known and borne LENGTHY PROCESS together to serve those they represent. in mind. To this end, I am including an As I look at what promises to be a lengthy Believe me, gentlemen, the look on the excellent column by Joseph Alsop which process, with the need to review all of the faces of those who will live in that new appeared in the Washington Post on evidence on the President's activities col­ building left no doubt in my mind that November 9, 1973, which substantiates lected by the Senate Watergate Committee, this is the way government should work. the facts as given in the magazine the evidence uncovered by Special Proce­ article: cutor Archibald Cox before he was fired, and The Allegheny County Housing Au­ the evidence which is now coming forth from thority has compiled an enviable record THREATS ON THREE FRONTS other sources, it is clear that although the in this area. It now manages 30 housing (By Joseph Alsop) Judiciary Committee is now committed to communities in the county, comprising At the moment, Fidel Castro and his Cu­ the impeachment process, it will take some approximately 3,500 housing units to bans have thoughtfully prepared positions time, xnaybe several weeks, given anticipated meet the needs of families and senior for the troops and artillery that would be delaying tactics by those on the Committee needed to attack the historic American base opposed to impeachment, for the Committee citizens. in Cuba, Guantanamo Bay. to decide on whether it should report a bill I take great pride in bringing to the At the moment, again, it appears down­ of impeachment to the House of Representa­ attention of my colleagues the people right likely that the North Vietnamese will tives. who took part in the dedication cere­ fairly soon tear up whatever remains of the POLITICAL FACT monies: Frank Watson, president of the truce agreement so painfully negotiated by Yet it is a political fact that the President building's Tenant Council; George Mc­ Secretary of State Henry A. Kissinger and has already been effectively impeached by Gregor and Daniel O'Brien of Post 373, Le Due Tho. Hanoi's minimuxn objective, as the judgment of the people. My mail, run­ indicated by massive military preparations VFW; the Steel Valley High School in flat, violation of the truce agreement, ning to 5,000 letters in the past two weeks Band, directed by Thaddeus Wawro; the was 99 per cent in favor of impeachment, pre­ would appear to be tearing away from South dicted the results revealed this past week end Reverend John Little of Park Place AME Vietnam the northernmost quarter of the in the nationwide Gallup poll that showed Church; Thomas R. Finlon, chairman of South's total territory, Military Region I. only 27 per cent of the American people in the housing authority board; Stephen At the moment, finally, there is still an all support of the President. It is now clear that A. Zappalla, vice chairman; Thomas A. too serious chance of renewed war in the the people have lost their confidence in the Nauman, secretary; Wayne P. Kelly, Middle East, with the Soviets actively aiding President. They are no longer willing to buy in the destruction of Israel. As those words treasurer; Carol A. Tucker, assistant are written, in fact, the intelligence commu­ his evasion, divisionary tactics and out-right secretary-treasurer; Mayor James Arm­ lies; they are demanding impeachment. nity is riven by an argument about why the strong of Homestead; County Commis­ Soviets have greatly diminished their airlift DESmABLE ROUTE sioner Thomas J. Foerster; William of supplies for the Arabs in the last couple of Our system is based most fundamentally days. This could mean that the Kremlin upon the consent of the governed. It cannot, Voekler of the North Borough's Men's has wished to cool off President Anwar Sadat and should not, operate in a climate of such Club; William Wardle, president of and the Egyptian high command, so that widespread distrust of our national leader­ Crump, Inc.; Mr. and Mrs. William Mar­ they would negotiate more seriously with ship. tin, first key to the building; Mrs. Secretary Kissinger. But it could also mean Nove1nber 12, 1973 EXTENSIONS OF REMARKS 36733 that the Kremlin wants to be ·ready for "MURDER BY HANDGUN: THE CASE Firemen answered an anonymous call prompt intervention in a renewed Mideastern FOR GUN CONTROL"-NO. 44 Monday night and found Clark on the floor, war, with the big Soviet air transports revved with burning newspapers stuffed under him. up on the southern Russian airfields where He died thret. hours later. Police said he the Soviet airborne forces are now on alert. HON. MICHAEL HARRINGTON had been shot in the head with a .38 caliber In sum, you may be careless of the most OF MASSACHUSETTS revolver. solemn U.S. commitments in Southeast Asia; but you still have to begin your calculations IN THE HOUSE OF REPRESENTATIVES with Israel's future, and to end at Guanta­ Monday, November 12, 1973 namo Bay. These ugly signs are in fact cited ROGERS AND HEALTH AND ENVI­ in inverse order of importance. For the Cu­ Mr. HARRINGTON. Mr. Speaker, RONMENT SUBCOMMITTEE IN­ bans are highly unlikely to use their prepared John Lindsay, the mayor of New York TRODUCE BILL TO PRESERVE attack-positions, unless this country has City, has often made his position in fa­ CLEAN AIR ACT AND AVERT other, large troubles some where else. vor of gun control quite clear. In a speech ENERGY SHORTAGE You may also be in a righteous fever for before the American Society of Crimi­ President Nixon's impeachment. But you still nology this month, Mayor Lindsay made have to include in your calculation the Watergate horror's hideous effect on the U.S. the point that in Tokyo where owning a handgun is illegal, there were only HON. PAUL G. ROGERS world position. All the foregoing threats are OF FLORIDA unquestionably Watergate-connected. three handgun murders in 1972. No In truth, tllese ugly threats would either major city in the United States can IN THE HOUSE OF REPRESENTATIVES not exist, or they would not be such serious boast such a small number of handgun Monday, November 12, 1973 threats, if those making the threats had not murders. begun to scent how badly Watergate has The statistics also indicate that in Mr. ROGERS. Mr. Speaker, today, I weakened the President, who has so often in southern cities where gun control laws and nine of my colleagues on the Sub­ the past proved his toughness and courage are lax, the murder rate is higher than committee on Public Health and Envi­ in threatening situations overseas. If you in cities with stricter gun control laws. ronment, Mr. SATTERFIELD, Mr. KYRos, are in the currently fashionable fever of Mr. PREYER, Mr. RoY, Mr. NELSEN, Mr. righteousness, you will, of course, say that if It seems to me that reducing the mur­ the President has been weakened, it is all ders in this country could be accom­ CARTER, Mr. HASTINGS, Mr. HEINZ, and his own fault. It is an arguable view. plished by eliminating handguns from Mr. HunNUT, introduced legislation de­ But it is even more arguable that right­ their pr~ser-t easy accessibility. signed to insure an adequate supply of eousness is less urgently important than the Included below are two articles-one fuel to this country this winter, and also vital U.S. interests that are now threatened. from the Boston Globe of November 4 to preserve the purposes of the Clean Air So even the Congress and the famous media Act. The specifics of the bill are as fol­ might well reflect a bit on what disaster:.; may quoting Mayor Lindsay and another from the October 31 New Jersey Courier lows: ensue for the American future, when you First. Authorizes the Administration have public gloating in tJoth Moscow and News describing another tragic and pre­ Hanoi because the President of the United ventable handgun murder. of the Environmental Protection Agency States has been politically crippled. The articles follow: to temporarily suspend any fuel or emis­ As a guide to the calculations above-sug­ [From the Boston Globe, Nov. 4, 1973] sion limitation with respect to station­ ary sources. This authority would cease gested, it is best to take the most important LINDSAY SAYS UNITED STATES NEEDS FEDERAL case-which is of course the Middle East. May 15, 1974. Before these words can be printed, Secre­ GuN CONTROL LAw Second. Authorizes the Administrator tary Kissinger may have pulled a negotiating NEW YORK.-Mayor John V. Lindsay yes­ terday called for Federal gun control laws, to grant a second suspension for any rabbit out of the hat in Cairo. Pray God period beginning after May 15, 1974 and he manages to do so. But you have only to asserting that nationwide permissiveness on examine the alternative to see what desperate the issue, particularly in Southern states, ending no later than June 30, 1977. This trouble this country is now in, partly because is "threatening the safety of police officers second suspension would be made con­ Watergate is now viciously inter-acting with and citizens in New York City." tingent upon the sources having entered our neglect of our power. In remarks before the American Society into a contractual obligation to obtain of Criminology, Lindsay said: "It is illegal to an emission reduction system determined If there is renewed war, and the Soviets own a handgun in Japan. And so in Tokyo, intervene, Israel is likely to be humbled and there were 217 murders in 1972, and only by the Administrator to be adequately at least half-crushed. Yet if this horrible three of them were committed with hand­ demonstrated, if the suspension is based result is avoided, no more than a couple of guns. In Detroit, with one tenth the popula­ upon the fact that compliance with the years will be gained for the United States tion of Tokyo, there were more than twice limitations is not feasible because of an to gather its wits again and to restore its as many murders in 1972." unavailability of clean fuels. Authority lost standing of a serious giant power, by Lindsay said Southern states, particularly rearmament and in other ways. is given to the Administrator to establish South Carolina, have the most permissive priorities under which manufacturers of The reasons for this bleak outlook are gu:::1 legislation in the country, and their law bleakly simple. The best imaginable settle­ affects people elsewhere. emission reduction systems shall provide ment that Secretary Kissinger can negotiate "In one ca.se, for example," he said, "one their systems to users. will eventually involve Israeli withdrawal man in South Carolina purchased 600 hand­ Third. Requires EPA to submit a de­ from most of a demilitarized Sinai, plus guns in one_day so that he could resell them tailed report to the Congress by March the subsequent re-opening of the Suez Canal. in northern cities. This best settlement will therefore permit 31, 1974, with respect to the impact of "That," Lindsay asserted, "is obviously a the Soviets to pose as tl:.e Arabs' revenge­ the Clean Air Act on fuel shortages the Federal problem of the highest order." givers and to pour their evergrowing naval availability of "scrubber" techn~logy power into the Red Sea, the Indian Ocean Lindsay also criticized the gun industry, and other matters. and the Persian Gulf. For this, the Kremlin say~g. "If these firms were also producing hermn, there would be Federal action and Fourth. Preempts States and localities needs the canal re-opened. national outrage. But their outpouring of from enforcing requirements which are Consider, then, the kind of states that own a-·; variance with an EPA award of sus­ the crucial oil resources of the Arabian pe­ guns, which annually kills far more people than drug addiction, barely causes a stir in pension or its determination of priori­ ninsula. The Soviets, as revenge-givers, will Washingt on." have their impact, even in Saudi Arabia. They ties for emission reduction systems. "This country was founded on cherished will have infinitely greater impact, however, Fifth. Requires the Administrator ideals, not guns," Lindsay said. "The frontier if the rulers of Arab oil almost all wake up to conduct a thorough study of State was conquered by plows and axes and hope­ one morning to find themselves looking down not gun-slinging." implementation plans and if he deter­ the throats of scores of missile-launchers on mines that, by reason of the award of Soviet guided missile cruisers, with one of [From the New Jersey Courier News, Oct. 31, temporary suspensions, .any plan must be the new Soviet aircraft carriers in the im­ revised in order to achieve primary or mediate offing as well. 1973] 1n other words, this game's stake is control SHOOTING VICTIM FOUND IN FLAMES secondary standards, then he must re­ of t he oil-tap, which is now the jugular CAMDEN .-John Clark, an interior decora­ quire revisions in the plan in order that of the western world. If there is a settlement, tor who had been shot in the head and set the standards may be met. Plan revi­ the United States may have time to avert afire, died Tuesday after firemen found him sions must be submitted no later than Soviet control of the oil-tap by really drastic on fire on the floor of his south Camden July 1, 197-1. measures. If there is no settlement, and home. Mr. Speaker, the energy crisis is real Israel is humbled, Soviet control o! the oil­ Police said it appeared that Clark, 28, had and must be dealt with, but we must be tap will be prompt and automatic. These are been burned in an attempt to camouflage certain that we do not act precipitiously not pleasant thoughts. the shooting. and do damage to our national health 36734 EXTENSIONS OF REMARKS November 12, 1973 through vitiating the laudable and nec­ AMERICAN LABOR SUPPORTS House, a memorial to the late president of essary purposes of the Clean Air Act. ISRAEL the AFL. In Elath, on the Gulf of Aqaba, adjoining I believe this legislation accomplishes three Arab nations, scores of thousands of this purpooe and look forward to its Israeli workers and soldiers have enjoyed prompt consideration by the Committee HON. HERMAN BADILLO the intellectual and recreational advantages on Interstate and Foreign Commerce. OF NEW YORK of the Philip Murray Ctiltural Center, named after the late president of the CIO and IN THE HOUSE OF REPRESENTATIVES bu~t in desert surroundings of large, rugged, Monday, November 12, 1973 native stone. BUILT SUCCESS THE HARD WAY In Holon, the Walter Reuther Children's Mr. BADILLO. Mr. Speaker, I wish to Home, an imposing mem<>rial to the late call to the attention of my colleagues president of the United Auto Workers, has HON. FORTNEY H. (PETE) STARK the very strong support of the American made possible a healthy growth and adoles­ OF CALIFORNIA labor movement for the State of Israel cence for many Israeli youngsters. and the close kinship between our AFL­ In Ein Kerem, the independent Interna­ IN THE HOUSE OF REPRESENTATIVES CIO and Histadrut, Israel's unique Gen­ tional Brotherhood of Teamsters erected the Monday, November 12, 1973 Teamsters Children's Home, a beautiful, long, eral Federation of Labor. low, two-story haven for children from bro­ Mr. STARK. Mr. Speaker, I am hon­ The support and encouragement Israel ken homes and a treatment center for asth­ ored to have the opportunity to insert has received from the AFL-CIO through­ matic youngsters. these words of approbation into the CoN­ out its turbulent 28-year existence has In the Druze village of Isaphia, set on GRESSIONAL RECORD for one Of my con­ been substantial. This close relationship the slopes of Biblical Mt. Carmel, the SEW stituents, Mr. Jose "Joe" Aceves, of is documented in a recent article by Les Medical Clinic is a therapeutically priceless whom it can be said, without fear of Finnegan, writing for Press Associates, gift of the Service Employees International Inc. This feature, which has been widely Union, AFL-CIO. overstatement, "built his success the In Hatikvah, the Hotel and Restaurant hard way." distributed to the American and Cana­ Employees International Union AFL-CIO I can relate somewhat with Joe be­ dian labor press, deserves the attention built the highly-valued Ed Miller Youth Cen~ cause I, too, built a successful business of our colleagues and I present it here­ ter as a tribute to the union's president. career through participation in the free with for inclusion in the RECORD: .In Haifa, the ILGWU Trade School, filled enterprise system. But there the similar­ CLOSE KINSHIP: AMERICAN LABOR HAS HUGE With modern machinery, trains young Israelis ity ends, because Joe had to overcome STAKE IN ISRAEL AND ITS VERY SURVIVAL not only for jobs and careers in the garment (ByLes Finnegan) industry but also for skilled jobs in the con­ obstacles that are uncommon for most struction industry and other fields. Anglos. First of all, he is Mexican-Ameri­ (NoTE.-The author of the following article In the Kfar Blum Kibbutz, the Painters can, a minority in this country. Second, has visited Israel twice and has personally Union Rest Home was constructed by the he lacked education, having migrated observed many of the activities of the International Brotherhood of Painters AFL- from Guadalajara, Mexico, as a farm American labor movement in that country.) CIO. ' laborer. WASHINGTON.-The AFL-CIO swift an­ In Krait Shmona, near the Lebanese border Joe's ambition to succeed drove him nouncement of all-out support for the State a $200,000 cold storage plant was built by th~ of Israel and for Histadrut, Israel's unique Amalgamated Meat Cutters and Butcher from the fields of California into profes­ General Federation of Labor, immediately Workmen, AFL-CIO, which also raised an­ sional boxing, then into industry, and after the Arabs launched the "Yom Kippur other $50,000 to repair damages caused by back to school. He had only an eighth War" came as no surprise to those familiar Arab shelling. grade education, but his aptitude for with American labor history. In Bnai Brak, the most modern and beauti­ mathematics and mechanics stood him If, as it is sometimes said, the State of fully-equipped multi-purpose clinic in Is­ well at Laney and Chabot Colleges, where Israel was a creation of Histadrut (the labor rael, the five-story Potofsky Health Center, he studied machine shop practice, tool federation was foundeu in 1920, 28 years be­ was recently dedicated in tribute to the fore Israel's independence) , then American former president of the Amalgamated Cloth­ design, mechanical engineering and labor had much to do with the crea-uion of ing Workers, AFL-CIO. drafting. He became a machinist, learned Histadrut. OTHER LABOR CONTRIBUTIONS moldmaking and die work, and even­ The extent of the moral and ideological tually founded his own business, the support that U.S. trade unionism has given However, these American trade union edi­ only Mexican-American-owned machine Israel and Histadrut, before and after the fices that dot the Israeli landscape from the achievement of independence in 1948, is well Lebanese frontier on the north to the Red shop in the bay area. Sea on the south, by no means exhaust Today Joe Aceves, age 40, is president known. What is almost completely unknown is the the evidences of U.S. labor aid to Israel and of Aceco Tool Corp., fulfilling contracts amazing extent of American labor's economic Histadrut. for the aerospace and commercial indus­ and financial assistance to the country and For example, the United Steelworkers, AFL­ tries. He also owns Pronto Tool and Sup­ its democratic labor movement. CIO, Scholarship Fund helps 24 Israeli boys ply Corp. and holds interests in several That assistance might well prove the dif­ and girls to obtain university educations each ference between life and death for Israel year. Other U.S. unions have established sim­ other businesses. ilar educational funds. His seemingly unlimited energy has now that this "oasis of democracy in the Middle East" is once again fighting' for its What makes these American labor con­ carried him into other endeavors de­ tributions all the more significant is that signed to help Latinos succeed in society very existence. no comparable relationship has ever fiowered and the business world. He feels, as I Unpublicized have been these two im­ between U.S. unions and any other nation pressive facts: at any time. do, that it is possible for everyone to Since 1947, U.S. unions have contributed succeed in our system, but he also recog­ Part of the answer, probably, is the tradi­ a total of $17,662,663 to Histadrut; tional American admiration for the under­ nizes the added handicaps borne by Since 1952, U.S. unions have purchased dog, the fact that the infant levantine nation members of minority groups. more than $800,000,000 worth of Israel bonds. was trying to build a new democracy where This realization led him to found the Just as impressive as these cash outlays democracy had never before taken root, in a Latin American Manufactures Associa­ and perhaps even more crucial to Israel's barren land of desert and rock, a tiny strip tion, a minority nonprofit business as­ survival today are the more than 100 hospi­ of Mediterranean coastline about the size tals, clinics, trade schools, medical training of New Jersey, devoid of natural resources. sociation, industrially oriented, designed facilities, children's homes and other struc­ specifically for the betterment of Latino Another part of the explanation for Ameri­ tures built by American unions. They in­ can labor's admiration and affection for Is­ businessmen. He is also active in other clude the following: rael lies in the pleased recognition that Israel, business, community service, social and In Nazareth, the George Meany Sports like America, has been a "melting pot," an cultural activities benefiting Latinos in Stadium, one of Israel's largest, with seats ingathering of the tired, the poor, the "hud­ San Leandro, Hayward, and other parts for 30,000 spectators, has been a major cen­ dled masses yearning to breathe free . . • of the bay area, and Nation. ter of athletics and physical fitness programs. the homeless tempest-tossed" as Emma Laz­ I am proud to be among those who can In Beersheba, the ILGWU (North Negev) arus, a Jew, wrote for the pedestal of the Hospital, constructed by the Int'l. Ladies Statue of Liberty. congratulate Jose "Joe" Aceves for win­ Garment Workers Union, AFL-CIO, serves all ning the Latino of the Year Award pre­ of the vast Negev desert area including the HISTORIC BACKGROUND sented tonight at the Bay Area Congress nomadic Bedoins. It has trained the first The State of Israel was only a distant for Mexican American Affairs' third an­ Bedoin doctor in 2,000 years. dream for Jews of the diaspora. around the nual awards dinner. In Haifa, the modernistic, marble-faced world when the Pittsburgh convention of the Thank you. Histadrut headquarters is the William Green AFL in 1928 took its first historic stand on November 12, 1973 EXTENSIONS OF REMARKS 36735 Histadrut. The delegates could hardly have well be called the most backward area of the ic deeds of our service men and women foreseen the birth of Israel 20 years later world." who gave so much for their Nation. when they passed an eloquent resolution Meany, himself the son of immigrants, em­ lauding Histadrut and praising its protec· phasized the U.S.-Israeli kinship by remind· Mr. Speaker, I invite my colleagues to tion of the workers of the Holy Land against ing American working men and women: "We join me in sponsoring this measure exploitation. too are a nation of foreigners. We are a changing Veterans Day back to Novem­ After that there was never a convention nation of people descended from those who ber 11 and respectfully request that the of the AFL or CIO, and seldom a convention came to America to find a haven from perse­ text of this measure be included in this of their affiliates, that did not support the cution and from oppression-economic, po­ portion of the RECORD: vision of a free and independent homeland litical and religious." A bill to reestablish November 11 as Veterans for the Jews. But the AFL and CIO, and later Nor has the AFL-CIO hesitated to side the AFL-CIO, did not rest with ephemeral with Israel against United Nations resolu­ Day convention resolutions. In Congress after tions critical of Israeli actions. One UN de­ Be it enacted by the Senate and House Congress and in countless state legislatures, cision was blasted as contradicting the of Representatives of the United States of national and state labor bodies won support Eisenhower doctrine for the Middle East. The America in Congress assembled, That, effec­ for a free Israel and the right of Jews every­ AFL-CIO said it "supports this (Eisenhower) tive upon the date of enactment, subsection where to migrate to the Holy Land. doctrine which pledges our country to be in (a) of section 6103 of title 5, United States Later that huge lobbying and educational readiness to resort to force if need be, and Code, as amended by the Act of June 28, campaign took on a new character-Israel's to halt aggression in that part of the world." 1968 (Public Law 90-363), is amended by desperate need for weapons with which to Meany proved, too, that he had an acute striking out "Veteran's Day, the fourth Mon­ defend itself against Arab attacks and the eye for military eventualities when he told day in October" and inserting in lieu thereof equal urgency of shaping world opinion Prime Minister Golda Meir, "The one bit of "Veteran's Day, November 11". against Israel's enemies. territory I would never give back would be Both Israel and Histadrut, down through the Golan Heights to Syria." the years, have been generous in their ac­ Meany summed it up for American union knowledgment of American labor's contribu­ members on Dec. 17, 1972, when he declared: SOKOL ASSOCIATION-TRADITIONS tions to the young nation's creation, survival "There is no disagreement within the AND LIVING IDEALS and development. American labor movement when it comes to The merged AFL-CIO was only four years the State of Israel. In supporting Israel we old when its 1959 convention was addressed are not only defending the bastion of democ­ HON. JOHN C. CULVER by Histadrut's General Secretary Pinhas racy in the Middle East--we are defending OP IOWA Lavon. Lavon was given a standing ovation our own principles, the principles of free IN THE HOUSE OF REPRESENTATIVES as he concluded his speech with these words: trade unionism; and nothing is closer to us "Many institutions in Israel, in city and than that." Monday, November 12, 1973 village, have been built for the welfare of Mr. CULVER. Mr. Speaker, I would the worker and his family thanks to the gen­ like to pay tribute to the Sokol Associa­ erosity of your hearts, a generosity which is common to American labor and the American GILMAN CALLS FOR RETURNING tion of Cedar Rapids. This organization, people as a whole. VETERANS DAY TO NOVEMBER 11 founded and supported by Czechoslovak­ "We achieved all the things that Israel has ian people of the Second District in Iowa, achieved by the pioneering efforts of two has contributed much to the Cedar generations of men and women," the Hista­ HON. BENJAMIN A. GILMAN Rapids community. I recently had the drut leader emphasized. "But of course we OF NEW YORK pleasure of addressing the Sokol Asso­ could not have done it without the generous IN THE HOUSE OF REPRESENTATIVES ciation as it celebrated its lOOth anni­ help given to us by our kindred and breth­ versary. I think the spirit and achieve­ ren in the free world and by the American Monday, November 12, 1973 labor movement." ments of this group are worthy of wide Mr. GILMAN. Mr. Speaker, today I am notice, and I would, therefore, like to in­ Standing on the AFL-CIO platform and introducing legislation reinstating the listening to wave after wave of cheers and clude the text of my remarks in the observance of Veterans Day on November RECORD at this time: 11.pplause, Lavon may well have been think­ 11 instead of on the fourth day of Octo­ ing back to the very first international state­ ber. REMARKS BY REPRESENTATIVE CULVER ment made by George Meany following his It is a pleasure for me to participate in election as president of the merger labor Veterans Day observances began back the 100th anniversary celebration of the movement. in 1919 as Armistice Day with the be­ Cedar Rapids Sokol Association. MOSCOW MANEUVERS ginning of a cease-fire over the battle Sharing close ties with the Cedar Rapids "It should be obvious to our government lines of a war-ravaged Europe. The sig­ community, we all know the importance of and to our allies," said Meany, "that Moscow nificance of that cease-fire coming at the maintaining involvement in a group such as is maneuvering to instigate aggression and to 11th hour of the 11th day of the 11th this one, both to strengthen the fabric of provoke the catastrophe of war in the Middle month was crystallized into a national our community and to heighten our aware­ East. The Communists have already ignited ness of our heritage and its cultural diver­ the fuse to the powder keg. The free world holiday initially honoring the veterans sity. must act immediately to stamp out that of World War I. With the increased serv­ Many nationalities make America what sputtering fuse and safeguard peace. ice of our men overseas, Armistice Day the country is today. The contribution of "As the first step," declared the AFL-CIO in 1954 was renamed Veterans Day and each nation's culture, its ideas, customs and chief, "the AFL-CIO recommends that the its celebration was continued on the 11th talents helped build this nation and con­ United States provide arms for defense of day of November each year as a day hon­ tribute to its greatness. Being proud to be Israel." oring all of our veterans until legislation Americans involves being proud of our heri­ And then in a 1956 prediction that came establishing 3-day holidays took effect tage. Sokol is an excellent example of how true in 1973, Meany said, "The growing im­ in 1971. we can keep alive the smaller community balance in military strength against Israel Within the larger one. will inevitably bring about war." Veterans Day is an important day-a If we had more such active groups, with The AFL-CIO appeal for Israel's defense day far too significant to be casually stress on family, participation, physical fit­ was no mere gesture. One month later, on noted as part of a 3-day October holiday. ness, and community involvement, perhaps the eighth anniversary of Israeli independ­ We must not let our Nation forget the we would be better able to solve and even end ence, the Federation asked President Eisen­ sacrifice, the courage, and the loyalty of some of the problems in society today. As all hower to "seek advance authority from our veterans for their country. It is alto­ of you here this evening know so well, young Congress" to send arms "for the defense of gether befitting that we set aside a spe­ people particularly benefit from their in­ Israel." cial date in recognition of their unse1fish volvement in this organization, as hopefully, Solemnly Meany warned the President and devotion to their Nation. their enthusiasm and interest here will lead Congress: "If we do not act now, Israel may to their strong development as future par­ become another Korea." With the advent of the 3-day holidays, ents, citizens and leaders. Of all the unions of free labor around the Veterans Day observances have been met In a time of accelerated change and of world, the AFL-CIO has been the most vocal with apathy and have been sacrificed to changing moods, ideas, and institutions, it is and least compromising in attacking Arab the commercialism of holiday shopping. heartening to see this group celebrate its aggression. The Arab warmongers, Meany Recognizing this, 32 States have already 100th anniversary. As you look ahead to an­ moved their State celebrations of Vet­ other century of development and growth, said, represent "a part of the world where and share your interests with others in the there is no such thing as democracy; where erans Day back to November 11. community and nations, we can take re­ feudalism still reigns; where within a very By Congress reestablishing November newed hope that the traditions and living few miles human beings are still sold into 11 as Veterans Day, we will be giving Ideals of this country wlll have as much slavery, a part of the world that could very added significance to the immortal, hero- permanence as this organization. 36736 EXTENSIONS OF REMARKS Novembett 12, 1973 A TURN TO GOVERNMENT an Atlanta contractor to put up the building rels in September. It is bad enough that FOR HELP and landed the company, Uarco, Inc., of we are exporting any fuel oil at all, but Barrington, Ill. This kind of success re-awakened interest to increase the exports by 350 percent as HON. BILL ALEXANDER throughout the town's business community. the shortage worsens is an outrage and For example: frankly incomprehensible. OF ARKANSAS A customer in Mr. McCurry's men's shop As many of my colleagues know, I have IN THE HOUSE OF REPRESENTATIVES one day mentioned that he was a baker with introduced legislation

SUMMER QUESTIONNAIRE RESULTS

Voter responses (percent) Voter responses (percent) Male Female Male Female Yes No Yes No Yes No Yes No

1. Do you feel that Federal or public employees should have the right 8. In the case of young men who have left this country to evade to strike?.------32 63 34 62 military service, would you favor: 2. Do rcou favor combining single-purrcose Federal programs into a. Unconditional amnesty and pardon.· ------;: 13 67 14 66 b ock grants for the States and ocalities to use according to b. Prosecution of those who return ______56 32 45 37 their needs, within prescribed guidelines? ------65 28 65 22 c. Amnesty or pardon, if they agree to an alternative type of 3. According to the recently signed peace agreement, the United public service ______46 42 53 34 States agreed to contribute to the post-war reconstruction of 9. Rising gasoline and fuel prices, and the apparent shortage of fuel Indo-China, including North Vietnam. Do you agree with this supplies is of concern to everyone. Would you support legislation provision?. __ _------. __ . ------•• ------24 74 21 74 to: 4. Do you support the Administration's efforts to lower Federal a. Relax auto pollution requirements ______47 44 30 53 spending through freezing (impounding) funds appropriated by b. Move ahead with the construction of the Alaskan pipeline. 78 15 79 19 Congress? ______• ______------52 44 41 50 c. Urge the reduction of speed limits on Federally-financed 5. Do fiou feel that recently announced phase IV economic controls highways ______------___ __ 57 34 68 24 s ould be imposed: d. Establish mandatory fuel distribution programs ______40 46 39 41 a. On a temporary basis?------52 34 51 28 The House Ways and Means Committee is considering tax reform b. For an extended period of time?. ______18 50 14 54 legislation calling for the following things. Would you favor: c. On a permanent basis?------5 66 4 63 a. Reduction of the oil depletion allowance ______41 41 36 38 6. Do you agree with the recent Supreme Court decision which bars b. Reduction of the Federal tax exemption on municipal bonds_ 41 43 38 35 Federal aid to private and parochial schools?------63 35 61 36 c. Reduction of the capital gains tax ______39 51 41 44 7. Should a news reporter have the right to refuse to reveal the name d. Institution of a property tax credit for the elderly ______80 11 80 9 of the source of a news story: 11. Do you agree with the recent Supreme Court decision regarding a. If national security is involved ______42 54 50 43 the liberalization of abortion laws ______62 33 63 37 b. If criminal activity is involved ______44 45 44 45 c. If no injury to others is apparent______74 24 73 24

OBJECTIONS TO SONNENFELDT in part as to the dates of the investiga­ not aware that anyone in a responsible posi­ CONFIRMATION MUST BE AN­ tions, each citing an investigation tion has repudiated it as inaccurate. It seems omitted by the other. to me that the question of honest parliamen­ SWERED-PART XIII tary proceedings is raised by the article. In obtaining necessary information You will recall that, on November 1, I wrote the Congress must rely heavily on the to you concerning the Sonnenfeldt Case. I HON. JOHN M. ASHBROOK accuracy of data supplied by the execu­ alerted you to the fact that numerous key OF OHIO tive branch departments and agencies. witnesses in the matter have not been called IN THE HOUSE OF REPRESENTATIVES If congressional committees do not have and that there is a great deal of evidence Monday, November 12, 1973 independent sources of information to that perjury has been committed, all avail­ check with, they are largely at the mercy able in the Hearing Transcript, now pub­ Mr. ASHBROOK. Mr. Speaker, as I of the executive branch data. The Son­ lished. (Congressional Record of November 1, have indicated in the past I am especially nenfeldt case has become a matter of 1973, page 35705.) interested in the nomination now before On November 7, 1973, I also wrote to Sen­ controversy precisely because independ­ ator Long detailing a long list of important the Senate of Helmut Sonnenfeldt as ent sources were available to question the witnesses whose evidence was not in the Under Secretary of Treasury because of executive's presentation of the case. One Hearing Record, simply because those wit­ its relationship to the extensive hear­ such source is Mr. John Hemenway, a nesses have never been called to be heard. ings which the House Internal Security former Foreign Service officer who (Congressional Record of November 8, 1973, Committee has been conducting since worked with Mr. Sonnenfeldt at the page 36461.) 1971 concerning the Federal civilian em­ State Department. His testimony on May Subsequently, I learned that Secretary of ployee loyalty-security program. A good 15 of this year before the Senate the Treasury Shultz, to his great credit, put a "hold" on the Sonnenfeldt nomination un­ illustration is the handling of Presiden­ Finance Committee was the initial state­ til he can get the facts concerning the tial appointments such as Mr. Sonnen­ ment in opposition to the Sonnenfeldt "wheeling and dealing" that went on behind feldt's by various departments as re­ nomination. his back without his permission or knowl­ quired by the Federal program. Additional hearings on October 1 and 2 edge in order to secure Senate confirmation In testimony before our committee brought forth other witnesses, unasso­ for Helmut Sonnenfeldt as Under Secretary. State Department representatives indi­ ciated with the executive branch, who The chronology in this matter is as follows: cated that such appointments are in­ questioned the nomination. Had these May 15, 1973-John Hemenway testifies vestigated by the FBI and the initial that Helmut Sonnenfeldt is unfit to be Under sources been unavailable or unwilling to Secretary of the Treasury. evaluation of the investigative material testify, many questions involving the Oct. 1, 1973-8tephen Koczak testifies un­ is evaluated by State's Division of Evalu­ Federal civilian employees loyalty-secu­ der oath on details of Sonnenfeldt's leaking ations of the Office of Security. In his let­ rity program would not have been raised. highly classified information to agents of a ter to me of August 7, 1973, Secretary of As knowledgeable sources are not always foreign power. Treasury Shultz stated that "pursuant to available to question executive branch Oct. 2, 1973-0tto Otepka testifies under normal procedures" in all cases involv­ presentations, one can appreciate the im­ oath on further details of Sonnenfeldt's pro­ ing President appointments requiring portance of having an efficient and re­ pensity to "leak" classified information and Senate confirmation security and con­ liable Federal security program. other violations of the law. flict of interest reviews are initiated and I insert at this point the letter of Mr. May 15, Oct. 1, 2-Mr. Sonnenfeldt denied the above accusations under oath; the Com­ conducted by the White House. In the Hemenway to Senator MANSFIELD o:f mittee reported the matter out of Committee case of the State Department, accord­ November 12, 1973, a copy of which I "unanimously" with the following senators ing to the testimony, the initial evalua­ have received, indicating the complexity absent: Sen. Talmadge, Sen. Byrd (Va.) , and tion is made at State whereas Treasury of this case to date: Sen. Mondale. was not involved at all in the case of Mr. WASHINGTON, D.C., November 12, 1973. November 1, 1973-John Hemenway writes Sonnenfeldt who was nominated to hold MAJORITY LEADER OF THE SENATE, to the Attorney General, U.S. Attorney for a high Treasury position. U .S. Senate, the D.C. and to Sen. Mansfield (See: Con. Also, as I have indica-ted before, nei­ Washington, D.C. Record Nov. 1, '73, p. 35705) noting that the published hearing transcript establishes ther Treasury or the Civil Service Com­ DEAR SENATOR MANSFIELD: Today's News­ week discloses a massive cover-up in the commission of perjury and other high crimes mission, in listing the investigations of Sonnenjeldt Case. (See: "Wheeling and Deal­ during the Sonnenfeldt Hearing. Mr. Sonnenfeldt, made mention of an in­ ing, Senate Style" in "Periscope", page 23, November 7, 1973-John Hemenway writes vestigation in the 1960-61 period in Newsweek, November 12, 1973, enclosed.) to Sen. Long to report numerous matters left which Mr. Sonnenfeldt was questioned This matter is called to your attention be­ unresolved by the Hearing Transcript, in­ by State security investigators, submitted caur 'l the report published in Newsweek calls cluding more than 15 witnesses not called to a lie detector test and had his phone into question the integrity of the entire who would corroborate the HemenwayI tapped. In addition, the list of investi­ Senate and its leadership, if true. I am not Otepka/ Koczak testimony in matters capable gations by the two departments differed able to evaluate the report myself, but I am of proof where issues are simple. November 12, 1973 EXTENSIONS OF REMARKS 36743

November 12, 1973-Newsweek publishes DEPARTMENT OF HEALTH, quarter of 1~74 and what will result under "Wheeling and Dealing, Senate Style" (p. 23, EDUCATION AND WELFARE, the continuing resolution is shown for a sam­ "Periscope" in the Newsweek of November OFFICE OF EDUCATION, ple of States and selected counties within 12, 1973.) The report suggests a Watergate­ Washington, D.C., November 2,1973. each State in Enclosure A. One table illus­ type deal made between Sonnenfeldt sup­ Hon. DANIEL J. FLOOD, trates these differences at the Fiscal Year porters and senators in a position to infiu­ Chairman, Subcommittee on Labor-Health, 1974 appropriation level of $1,810,000,000; ence the Senate leadership's handling of the Education, and Welfare, Committee on the other is shown at the Fiscal Year 1974 Sonnenfeldt confirmation. Reportedly, a Appropriations, House of Representa­ operating level of $1,629,000,000. These tables voice-vote would remain unrecorded, attenu­ tives, Washington, D .C. provide a comparison between the 1973 op­ ating blame against individual senators. DEAR MR. FLooD: The Under Secretary in­ erating level, the allocations under the first Sonnenfeldt would then resign and go to formed me of his telephone conversation and second continuing resolutions, and the work for Dr. Kissinger at State requiring with you on the Title I, ESEA, situation in effects of lifting the 115 percent ceiling. confirmation, if any, by the Foreign Rela­ 1974. From our analysis, we believe that the large tions Committee. As you are aware, the problems which have southern cities which have had population Subsequent to Nov. 12 issue of Newsweek­ currently surfaced due to language in the gains are penalized by the 115 percent ceil­ Secretary of the Treasury Schultz orders a continuing resolution are a result of a more ing and thus the allocations do not recognize "hold" on the Sonnenfeldt nomination until fundamental problem with the Title I for­ the 1970 Census data. In contrast, rural coun­ matters reported in Newsweek-unknown to mula. The formula we are using for distri­ ties which lost population and money have him personally-are cleared up and made a bution of funds includes the use of a $2000 their losses minimized when brought up to 90 matter of public record. low-income level which was an equitable percent. In the northern cities, the results Senator Mansfield, the purpose of this let­ definition of poverty in 1960 but is inade­ are not the same, although the outcome for ter is to alert you, the leader of the United quate for the distribution of funds using the northern areas is similar for both the State Senate, to the scandalous series of 1970 Census data. We had hoped to have a $1,810,000,000 and $1,629,000,000 levels. events noted above. No one in the U.S. Sen­ new formula in place for the Fiscal Year An analysis of several different options was ate should treasure and guard the respected 1974 distribution using the new data, but undertaken to determine whether a more reputation of that great body more than you; this was not accomplished. The problem we equitable distribution could be achieved. The in fact, it is your responsibility to be jealous face now is working with a makeshift ar­ following variations were analyzed: and vigilant of the Senate's reputation. The rangement to achieve the most .equ~table 1. the present continuing resolution­ American people can expect you to do your possible distribution of funds untll T1tle I, LEA's at 90 percent of 1973 and no more duty in this matter, of that I am confident. ESEA. than 115 percent of 1973, and the State at 90 T'> do less, in the shadow of Watergate would School districts have been operating on an percent of 1972; seem hypocritical. annual allocation made during the first 2. the effects with no LEA ceiling- Sincerely yours, quarter of Fiscal Year 1974 based upon the all LEA's at 90 percent of 1973 and the JOHN D. HEMENWAY, first continuing resolution, P.L. 93-52. These States at 90 percent of 1972; allocations did contain the provision to guar­ 3. all States at 90 percent of 1972; and WHEELING AND DEALING, SENATE STYLE antee each State 100 percent of what it re­ 4. all local education agencies at 90 per­ The long-delayed confirmation of Helmut ceived in Fiscal Year 1972. The effect of the cent of 1973. Sonnenfeldt as Treasury Under Secretary was 100 percent State hold harmless was to par­ The results indicate that there are no the result of delicate dickering-and a deal­ tially mitigate changes among States which completely satisfactory solutions, although between Sen. Russell Long and the White resulted from the use of the 1970 Census certain ones do minimize some of the dis­ House. Charges that he had leaked classified data for the first time in the 1974 Title I, ruptions which will result between the first­ information had held up the appointment of ESEA, formula. Without the 100 percent and second-quarter allocations but also let Sonnenfeldt, a longtime colleague of Henry State hold harmless at the Fiscal Year 1972 the Census data take effect in counties where Kissinger, in Long's Senate Finance Commit­ level, allocations to the large suburban/ substantial gains have occurred. The results tee for five and a half months. The deal that urban states would have increased substan­ are shown by State in the enclosed table broke the jam called for approval by voice tially above the 1973 level and the rural (Enclosure B) which compares Fiscal Year vote (which is noet recorded), plus an "un­ States would have experienced severe reduc­ 1972, and 1973 operating levels, and the an­ derstanding" that Sonnenfeldt will resign tions below the 1973 operating level. Within nual rate upon which first-quarter alloca­ shortly and move to Kissinger's State De­ states, the overall effect of the new alloca­ tions were calculated for Fiscal Year 1974 partment. "And if the new job requires con­ tion generally was to shift Title I money under P.L. 93-52 by the four variations firmation," Long says, "let the Foreign Rela­ from rural areas to suburban/ urban areas. above. tions Committee worry about it." Some areas deserved these increases or de­ From my analysis, it would appear that creases; others apparently did not. However, the disruption between the first and second­ lacking a better definition of poverty, the quarter could be reduced if the 115 percent actual equity of changes is difficult to assess. ceiling were removed. The major effect of ESEA, TITLE I The present continuing resolution, P.L. eliminating the ceiling is that the remainder 93-124, will minimize the dramatic differ­ of the funds which were previously concen­ ences between 1973 and 1974 and restore trated in and perhaps artificially infiated the allocations in the rural school districts to counties between 90 and 115 percent of 1973 HON. ROBERT H. MICHEL at least 90 percent of their 1973 allocation now is more evenly distributed to all coun­ OF n.LINOIS and restrict the maximum amount a large, ties over 90 percent by the rate of their suburban/ urban school district could re­ entitlement. IN THE HOUSE OF REPRESENTATIVES ceive to 115 percent of its 1973 allocation. Although not totally true in every case, the Monday, November 12, 1973 The language of the continuing resolution counties which refiect the greatest gains ap­ also guarantees that each State in aggregate pear to be those which have the largest Mr. MICHEL. Mr. Speaker, in view of will receive no less than 90 percent of the numbers of children in families with in­ the announced effort on the part of the amount that State received in 1972. comes under $2000 and children in families gentleman from Minnesota

SENATE-Tuesday, November 13, 1973

The Senate met at 10 a.m. and was ABOUREZK, a Senator from the State of South financial and technical capability to use called to order by Hon. JAMES .ABOUREZK, Dakota., to perform the duties of the Chair the right-of-way in a manner which will a Senator from the State of South during my absence. protect the environment. Dakota. JAMES 0. EAsTLAND, President pro tempore. The message also announced that a bill