February 17, 198 7 EXTENSIONS OF REMARKS 2523 EXTENSIONS OF REMARKS CASTRO AND CENTRAL To be exact, Castro's involvement in the That Fidel Castro is quite aware of the AMERICA narcotics trade is no accident. Communist American dilemma can be noted from a leaders throughout the world use all kinds broadcast over Colombia's Caracol network of illegal and inhuman business to finance on Jan. 16, 1983. The interview with Fidel HON. JACK FIELDS the destruction of capitalism. Their tactic is went like this: OF TEXAS very simple: Whenever their con game is ex­ "Q: What should the United States do to IN THE HOUSE OF REPRESENTATIVES posed, they loudly claim that their con­ demonstrate that it wants peace, the first science is clear, and pin the blame on "U.S. thing that it should do?" Thursday, February 17, 1983 imperialism." "A: They have had a e Mr. FIELDS. Mr. Speaker, Ameri­ There is irrefutable evidence that Castro's great experience in Vietnam on how to re­ navy was behind the transportation of at treat. (laughter>. I think they must first cans in general, and Texans specifical­ least 5 million methaqualone tablets and persuade themselves that they are losing ly, should take great interest and con­ 1,000 pounds of marijuana to Florida. That the war; that they are losing their hand. cern over the anti-American activities has not prevented CUban officials from re­ Their interventionist policy is being defeat­ of Communist Cuba and Fidel Castro. torting that the whole affair was a CIA fab­ ed: I think this is the first thing about As we hear increasing discussion of rication. which they should persuade themselves." normalization of relations with Castro, A North Korean ambassador to Norway The defeatist psychology-and that is and Sweden was expelled in the wake of a what it undeniably is despite White House we should remind ourselves of his dan­ huge smuggling racket involving liquor, gerous activities and influence in the would-be interventionist policy-is now cigarettes and marijuana. Interpol docu­ widespread in Washington, due in large part Western Hemisphere. Toward that ments showed that all North Korean diplo­ to State Department officials like Asst. Sec­ end, I insert in the RECORD the follow­ matic installations in Northern Europe, es­ retary of State Thomas Enders and his ing two articles from the Times. pecially in Copenhagen, Oslo and Stock­ Latin American desk. CFrom the Washington Times, Feb. 16, holm, served as smuggling centers. But the Whether Enders reflects the policy senti­ North Koreans kept saying they were slan­ ments of Secretary of State George Shultz 1983] dered, and the diplomat-contrabandist was CASTRO'S NARCOTICS TRADE is unknown to the writer. However, State promoted to a higher position-that of for­ Department mainstream opinion is, to put it eign affairs vice minister. bluntly, to follow the Fidelista prescription Four close aides to Fidel Castro, including Six years ago, communist Vietnam made for retreat as desirable prudentialism. two influential members of the Central public the initial results of an "investigation The department's institutional memory Committee of Cuba's Communist Party, into war crimes committed by American im­ has turned Vietnam into the eternal buga­ were indicted recently on federal charges of perialists and their puppets." The United boo, even though Central America is some­ smuggling narcotics into the United States. States was charged with a dozen crimes, in­ what closer to U.S. security concerns than The report caused indignation, but not sur­ cluding that of narcotics trafficking. The was Vietnam. prise, because as Florida Sen. Paula Haw­ truth is that during the Vietnam war, most But there is no point in blaining Enders kins, whose people "have been the target of illicit drugs sold and used in the south were and the Latin American desk for our misfor­ Castro's aggression for many years," put it­ supplied by traffickers having ties to the tunes in Central America. this was "but the last of a long list of ac­ Hanoi intelligence service. The rot is to be found on Capitol Hill, tions by the communist dictator, which in­ China was a major supplier, too. Mengku Hsiaohsi, a pro-Soviet Chinese language where the big issue for men like Sen. Chris­ clude the illegal shipment of criminals and newspaper in Mongolia, once accused topher Dodd and his allies in the House of mental cases to our shores." Peking of operating heroin refineries in Representatives is not the future of democ­ As chariman of the Senate Drug Enforce­ southern China, and of planting poppies in racy in Central America but the wounding ment Caucus, Hawkins has called on Presi­ state farms in Yunnan, Kwangsi and Kwei­ of a U.S. serviceman in a helicopter over an dent Reagan to conduct a "reassessment of chow provinces. El Salvador jungle; not loyalty to those U.S.-CUban relations." Such reassessment is Due to the competition between commu­ Hondurans and Salvadorans who are com­ all the more urgent since propagandists and nist traffickers, the flow of illicit drugs has mitted to fighting a Communist uprising­ apologists in the media and on Capitol Hill not abated. Their sales in the United States and anybody who thinks it is anything else have begun reactivating the "normalization have exceeded $80 billion a year. The but a Communist rebellion also believes in of relations" ploy. Reagan administration has launched a the tooth fairy-but to a policy of neutral­ Is it time to lift the U.S. economic embar­ major effort to stop the drug flow. Another ism which means another country falling go and reestablish full diplomatic relations spectacular effort is sorely needed to find into the hands of Castroism. with Havana? Well, before answering that out how much of this $80 billion is being The rot on Capitol Hill is abetted by the question, let's consider the case of Chang used to keep Americans in a state of politi­ silence of important spokesmen for a tough­ Chi-fu, the notorious drug trafficker in the cal narcolepsy. minded foreign policy, one for which there Golden Triangle, an area with forests and could be popular support if only there were mountains bordering on Thailand, Burma CFrom the Washington Times, Feb. 16, as much political courage among the hard­ and China's southern province of Yunnan. 1983] liners as there is among Dodd and his allies The Thai government has posted a $25,000 as they press for a retreat from Central reward for Chang's capture. The United CENTRAL Alo:RICA-"Too BIG To DENY, Too America. States has encouraged Southeast Asian SMALL To WIN" Anyone who has followed Soviet-Cuban countries to step up enforcement activities, foreign adventurism knows that the conse­ eradicate poppy crops, restrict the availabil­ The reason for the imminent Andropov­ quences of American defeat in Central ity of acetic anhydride, a chemical used to Castro victory in Central America and America and of an Andropov-Castro tri­ process heroin, and destroy clandestine defeat of democratic hopes for that embat­ umph would not be just local, leading-yes, "heroin refineries." tled area can best be summarized in a sen­ Virginia, there is a domino theory-to Cas­ To a certain extent, Castro is a Latin tence a Washington policymaker recently troite regimes in Honduras, Costa Rica, American Chang Chi-fu. What's more, the used privately in discussing the crisis in the Guatemala and so on, but rather that the drug syndicate of which he is the kingpin hemisphere: "Too big to deny, too small to consequences would be global in nature. is many times more powerful than the gang win." For if the United States couldn't safe­ of armed outlaws, who call themselves Shan What the sentence means is that while guard its own backyard-the Cuban exam­ United Army, in the Golden Triangle. Thus, the Reagan administration is sending mili­ ple is bad enough-in Central America, who it is contrary to American ethics to seek ob­ tary equipment to El Salvador, it is unable would believe that it could safeguard any­ literation of a Southeast Asian contraband­ to send equipment sufficient to ensure the body else 3,000 or 4,000 miles away? And for ist while embracing the No. 1 drug traffick­ defeat of the Castro-controlled rebels in how long would Mexico stand up against er in the Western Hemisphere. Central America. such a Castroite encirclement? A Rapid De-

e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. 2524 EXTENSIONS OF REMARKS February 17, 1983 ployment Force for the Middle East? How all its rates and charges for transpor­ bating or refunding any portion of the about a Rapid Deployment Force for our tation of cargo between U.S. ports and specified rates. own hemisphere? foreign ports. It similarly requires the In addition to stating what the bill We simply cannot go on this way, half-in, half-out. Are we to wait until, as in South­ filing of any changes in rates that does, I think it is worth outlining its east Asia, we see what a Communist takeov­ would result in an increase in cost to a limits and making clear what it does er means and only then try to avert the re­ shipper. The law requires adherence not do: pression and totalitarian rule by-what? by the carrier to the tariff as filed and As a practical matter, the bill only Resolutions? Refusal to give foreign aid to prohibits rebates and refunds. Finally, applies to containerized cargo. the new socialist countries and watch them it gives the Federal Maritime Commis­ The legislation only applies to cargo happily march into the Andropov-Castro moving on an intermodal basis where camp? sion authority to disapprove a rate if it Congressmen and the liberal-left press finds it to be so unreasonably high or the ocean carrier also supplies the deride Asst. Sec. of State Elliot Abrams for low as to be detrimental to the com­ land transportation between the Cana­ offering a prayer of hope about human merce of the United States. dian port and the U.S. point of origin rights in Central America. Do they think It has been judicially decided that or destination. that an Andropov-Castro takeover in Cen­ the act does not cover transportation The bill does not apply where a U.S. tral America will bring improved civil rights touching only foreign ports. fAustasia manufacturer or shipper carries his and liberties for the desperate people of own cargo to a Canadian port or hires those mini-countries? Intermodal Lines, Ltd. fACEJ v. FMC, I think it is time for President Reagan to 580 F. 2d 642.> The Federal Maritime a land carrier to carry it to the Cana­ begin talking about Central America as an Commission, there!ore, does not have dian port. issue that will not go away, an issue which jurisdiction over transportation of The bill does not put any require­ involves the very credibility of American cargo by vessel from a Canadian port ments or restrictions on U.S. shippers. foreign policy and American rearmament. to a port in Europe. Under present It does not prevent them from ship­ Does Shultz believe Communist China will law, a foreign carrier may pick up ping their cargoes through Canadian put any faith in American assurances when ports. It does not prevent them from this same America cannot deal with an up­ cargo in the United States, transport rising in Central America, cannot safeguard it be rail or truck to a Canadian port, using the same carriers they now use. human beings from Communist totalitarian and ship it overseas on its vessel with­ The bill will not change or restrict killers? out becoming subject to FMC jurisdic­ the ability of carriers to offer the Here sits big, fat America, paralyzed tion. same level of service at the same price before the destruction of human rights in Thus, under present law, the foreign they now offer. heroic Poland, silent before the everyday carriers that move U.S. cargo through The bill will not force any carrier­ violation of Basket Three of the Helsinki either foreign or domestic-to raise its agreement-and not daring to speak out or Canadian ports are not subject to the act against the Central American insurgen­ 1916 Shipping Act or to the jurisdic­ rates. The carriers using Canadian cy. tion of the Federal Maritime Commis­ ports can continue charging the same How much longer will this farce go on?e sion, since they do not operate from a rates they now charge. U.S. port. They do not have to file This bill is not an anti-Canada bill. their tariffs as carriers operating from It is not aimed at Canada or its citi­ DIVERSION OF U.S. CARGO zens. Instead, it is aimed at removing THROUGH CANADIAN PORTS a U.S. port do. They are not subject to the antirebating and antidiscrimina­ an inequity that we have built into our tion provisions of our law. Putting it own laws. The bill provides for equali­ HON. MARIO BIAGGI simply, they are not required to play ty of treatment. OF NEW YORK by the same rules as carriers using Nor is the bill a protectionist bill. It IN THE HOUSE OF REPRESENTATIVES U.S. ports. The bill I am introducing does not erect any trade barriers. It Thursday, February 17, 1983 would correct that. imposes no onerous requirements on Canada, Canadian citizens, or ocean e Mr. BIAGGI. Mr. Speaker, I am The legislation would require that carriers using Canadian ports. It only today reintroducing a bill on a subject ocean carriers moving U.S. cargo on an requires those carriers to do what car­ that was extensively considered in the intermodal basis through Canadian ports be subject to the Shipping Act as riers using U.S. ports have to do now. last Congress, t he so-called Canadian The bill will not restrict the movement diversion problem. That phrase refers if that cargo were being moved of cargo or diminish a shipper's free­ to the increasing flow of U.S. cargo through a U.S. port. I would like to dom of choice. through Canadian ports rather than make it clear that this bill only applies Enactment of this legislation will be through U.S. ports. to an ocean carrier that engages in the an important step in aiding American This diversion of cargo from our ocean transportation of cargo originat­ ports, the American merchant marine, ports is due in large part to a loophole ing in or destined to the United States. and American workers. I hope it will or gap in our shipping laws. Through The cargo must be carried through a have broad support.e that gap flows not only U.S. cargo but port in a nation contiguous to the U.S. jobs-the jobs of American long­ United States. The ocean carrier must, shoremen, truckdrivers, seamen, and within the United States, advertise, so­ ADMINISTRATION'S DEFENSE the many people needed to service and licit, or arrange for the transportation. BUDGET PROPOSALS supply a ship in port. Jobs follow Finally, the ocean carrier must trans­ cargo, and when U.S. cargo moves port the cargo between a point in the HON. ROBERT J. LAGOMARSINO through Canadian rather than U.S. United States and a port in a nation OF CALIFORNIA ports, U.S. jobs move to Canada. The contiguous to the United States. Only IN THE HOUSE OF REPRESENTATIVES bill I am introducing will give us a when all of these conditions are met chance to reclaim those jobs. does the bill apply. Thursday, February 17, 1983 One of the reasons our cargo moves The effect of the bill is to apply sec­ e Mr. LAGOMARSINO. Mr. Speaker, through Canadian ports is because our tion 18 of the 1916 Shipping Act, to I wish to bring to the attention of my own law gives an advantage to ocean carriers who fall within those condi­ colleagues the recent discussion of the carriers that use Canadian rather than tions. That section requires that defense budget by Senator JOHN U.S. ports. This advantage arises be­ common carriers by water in foreign TOWER, which appeared in the Wash­ cause of the language of the Shipping commerce file their tariffs with the ington Post on February 6, 1983. I be­ Act of 1916. That act requires that Federal Maritime Commission. It also lieve Senator TOWER'S comments pre­ each common carrier by water in for­ requires that they collect for services sent a useful perspective on the issues eign commerce file with the Federal only in accordance with the published involved in the administration's Maritime Commission tariffs showing tariffs-and prohibits them from re- budget proposals for defense. February 17, 1983 EXTENSIONS OF REMARKS 2525 CFrom the Washington Post, Feb. 6, 19831 which I have encouraged the administration ets: the realization of sound agreements de­ How MUCH FOR ARMs? IN DEFENSE OF THE to declassify and release to the American pends upon the belief by the leaders of the DEFENSE BUDGET public. I am convinced that the better Soviet Union that we have the ability and Americans understand the nature of the political will to deploy modern weapons, Every taxpayer should be concerned about threat our nation faces, the better prepared absent such an accord. the failure of Congress during the last three we will be to deal with it. One thing, howev­ When we do not present the Soviet Union years to establish sensible priorities among er, is clear: the nature of Soviet foreign with a credible and unpalatable alternative competing fiscal demands. Congress in its policy and the scope of Soviet adventurism to negotiated, genuine reduction in tensions desire to be all things to all people has been will not be moderated by restraints in U.S. and sharp cuts in nuclear forces, we ensure a willing partner of special interest groups defense spending. As a former secretary of that future arms control agreements will that have benefited by a proliferation of defense once said, "When we build, they fall short of these objectives. governmental programs. There is no ques­ build, and when we stop, they build.'' These are not untested hypotheses. On tion that many of these programs were fos­ It has been suggested by some that we the contrary, for some 14 years the United tered by well-intentioned members of Con­ cannot afford the defense budgets proposed States has sought accords with the Soviets gress who sought to help those Americans by the Reagan administration or that the aimed at improving strategic stability and who were not able to help themselves. proposed size of the defense budget will be substantially diminishing the prospects of Despite the constant stream of politically detrimental to our economic recovery. That war between the superpowers. We have motivated rhetoric, there is no effort under is a very misleading argument. In fact, de­ done so while exercising extraordinary and way to retreat from the responsibility, fense spending has a very positive impact on unilateral restraint in developing and de­ indeed the moral obligation, to provide for the economy. It creates jobs and actually re­ ploying strategic weapons systems. For our the truly needy in America. However, our turns about 46 percent of our investment to efforts, we have, by and large, gotten flawed national resources are not unlimited, and we the Treasury as a result of multiple layers treaties and a strategic and theater nuclear can no longer afford the unbridled expan­ of taxation. With interest rates declining imbalance in which we find ourselves great­ sion of social programs. The measure of a and inflation below 6 percent, we must now ly disadvantaged. program's worth can no longer be whether concentrate our efforts on reducing the Whether one considers the efforts to it would be "nice to have." high unemployment rate. Reductions in de­ arrive at agreements aimed at banning anti­ We must now apply a more stringent fense spending will only put more people satellite weapons or chemical warfare, talks standard-whether a particular program is out of work while at the same time weaken­ on mutual balanced force reductions in essential to preserve the fundamental wel­ ing our defense posture. I find that an unac­ Europe, or the more visible negotiations on fare and security of our society. Consider ceptable proposal. strategic and theater nuclear armaments, it that from 1960 to 1980 social spending in­ It should be recognized that during the is obvious that, in the absence of appropri­ creased in real terms by 300 percent. In con­ decade of the 1960's, beginning with the ate incentives, the Soviets are utterly disin­ trast, funding for defense during the same Kennedy administration, the percentage of clined to give up advantages they have ac­ period remained constant in real terms. Our the gross national product represented by quired through their own formidable de­ failure over the last decade to provide ade­ the defense budget averaged almost 9 per­ fense spending. So long as they have no quately for our national security, at a time cent. That was a time when the United reason to believe these advantages will be when the Soviets were engaged in a relent­ States enjoyed undisputed military superi­ negated by expenditures of the United less military buildup, has forced us into the ority. Today the military balance favors the States or its allies for systems providing difficult position in which we now find our­ Soviets. And yet the proposed defense comparable capability, the leaders of the selves. budget of the Reagan administration, even Soviet Union have shown themselves to be Unless we address the reality of Soviet if approved in its entirety by Congress, will remarkably resistant to the world's plea for military power and all its manifestations, we not exceed 7 percent of GNP. disarmament and to our proposals for run the risk that in some future crisis the If further reductions must be made in fed­ ending competition in various fields of Soviet capability to escalate a confrontation eral spending, then Congress should look modern weapon development. will outpace our own ability to adequately first at those areas that have sustained the In contrast, where we have shown our respond. Just as important, the United most growth in recent years. As noted earli­ willingness to commit the resources neces­ States must have the resources to pursue er, all of the real budget growth for 20 years sary to develop and deploy weapon systems those foreign policy objectives that are es­ has been in social programs, not in defense that the Soviet fear, they have been notably sential to the preservation of our national spending. In fact, over the past 10 years, more forthcoming. Our, experience with an interests throughout the world. real defense spending has declined by 9 per­ anti-ballistic missile system is a case in Since 1962, Soviet military capability has cent. point. In 1972, with Congress having nar­ grown inexorably. This growth, unin­ Unlike our potential adversaries, we are a rowly approved funding to permit deploy­ fluenced by fluctuation in U.S. defense nation blessed with the resources to care for ment of an ABM network, the Soviet agreed spending, has provided the Soviets with the truly needy and at the same time pro­ to a treaty that sharply restrained the use both a margin of strategic superiority and a vide for the security of our people. The real­ of such systems. broad range of conventional superiority. location of federal budget resources con­ Unfortunately, recent congressional re­ Virtually no facet of Soviet military capabil­ tained in the Reagan program, whereby de­ ductions in defense spending, deemed to ity has been neglected. Moreover, continu­ fense would eventually grow to 37 percent affect our national security only marginally, ing improvements in the quality of Soviet of the budget and 7 percent of GNP, is both have done much to persuade the Soviet weaponry, when spread across the massive affordable and consistent with historical leadership that the United States, as it has Soviet inventories, threaten even more rapid peacetime trends. Moreover, the proposed so many times before, once again lacks the and adverse shifts in the military balance. defense budget is essential to support a mili­ will and commitment to proceed with essen­ The Soviet government has achieved its tary force capable of meeting our foreign tial theater and strategic force moderniza­ current military standing only by imposing. policy obligations and requirements, and is tion. The current Soviet intransigence at severe privations and hardship on its people. necessary if we are to redress the existing the negotiating table is, in my opinion, a Food supplies are scarce, household con­ military imbalance. If we retreat from the direct result of their perception of a lack of veniences are prohibitively expensive, and defense program that the country has sup­ American commitment to strategic modern­ luxury goods are available only to a chosen ported for the last two years, that imbal­ ization. few. There is also recent evidence that the ance will grow, friends and allies of the This perception, coupled with the appear­ quality of medical care available to the aver­ United States will question and perhaps ance of wavering by our allies in the face of age Soviet citizen is declining. challenge American leadership, and our an aggressive "peace compaign" by the One might expect the Soviet government economy will be no better off. Soviet Union, virtually ensures that one of to moderate its military expansion, now Perhaps nowhere is the relationship be­ two outcomes will occur: either a U.S-Soviet that it has achieved unprecedented levels of tween the perceived will of the United arms reduction agreement will not be military strength at so great a cost to its States to adequately fund its defense re­ reached or, if one is achieved, it will be on population. But this has not been the case. quirements and the effectiveness of its na­ terms favorable to the Soviet Union. Even today, for every 600 tanks we build, tional policy clearer than in the area of An alternative can and does exist. It is to they build 3,000. For every 300 fighter air­ arms control. While preparing this article, I support the upgrading of our nuclear forces. craft we produce, they produce l,300. And had discussions with our negotiator at the With such a policy, we will significantly im­ for every two or three submarines we Intermediate Nuclear Force and the Strate­ prove· the chances for negotiating sound launch each year, they launch between nine gic Arms Reduction Talks in Geneva. In arms control agreements with the U.S.S.R. and 12. those discussions, one theme was repeated The net effect of meaningful, verifiable There are other facts about Soviet mili­ time and again by the men working to reach arms reduction agreements-if they can be tary power that are equally disturbing, equitable, verifiable treaties with the Sovi- reached-may ultiinately be to permit sig- 2526 EXTENSIONS OF REMARKS February 17, 1983 nificant and long-term budget savings as we tremely favorable. Although the isle is income tax that can be observed. quired for our legitimate national defense. possesses a modern economy to which The tax rate in 1982 was 20 percent. Each I believe that the size and substance of year the Tynwald sets the rate for the the Reagan defense program merits the se­ application of the flat tax has some forthcoming tax year. Since 1962, the flat rious, critical and continuing review of Con­ relevance. rate has varied between 21.25 percent and gress. I am convinced, however, that the On this subject, I insert the full text the current 20 percent. typical rationale for a significant departure of an article by Prof. Roy Jastram What about exemptions? The simplest from the Reagan defense budget should be from the University of California at way to examine how exemptions are applied viewed with great skepticism. The Soviet Berkeley which I believe will be en­ is by presenting a prototype of a single military buildup is real; we cannot wish it lightening. The article appeared in the family and a corporation. away. We must not sacrifice the long-term January 28, 1983, issue of the Wall The income tax return of a married security of our country, nor the prospects Street Journal. couple with one child receiving a single for meaningful arms control, for some income represented by the earnings of the ephemeral budgetary gesture whose effect CFrom the Wall Street Journal, Jan. 28, husband would be worked out like this: on the overall deficit, when all is said and 1983] You begin with the individual's total done, will be minimal.• Fl.AT-TAX LAB: THE Isu: OF MAR earned income figure. From that subtract personal allowances . Then subtract expense deduc­ We are agreed that our present system of tions . Those subtractions leave one's tax­ Thursday, February 17, 1983 cheaper to operate and fairer. able income. And 20 percent of that is the One prominent contender for achieving personal income tax on the Isle of Man. e Mr. DANNEMEYER. Mr. Speaker, these desirable ends is the flat-rate on in­ This information could be fitted onto the as you are well aware, public confi­ comes. It must always be remembered that a proverbial postcard, but the Manx Taxing dence in our current tax system has flat-rate income tax has two distinct parts: Authority uses a sheet of paper so the tax­ deteriorated markedly. In a Senate Fi­ Cl> the percentage of tax to be applied; and payer need not suffer the discomfort of nance Committee hearing in Septem­ <2> the numbers and kinds of deductions to cramped handwriting. ber of last year, the noted public opin­ be allowed. Much needless confusion arises The principles of company ion pollster Louis Harris commented over this subject because of a misapprehen­ taxation are closely consonant with the in­ on the results of a recent survey sion that a flat-rate income tax necessarlly dividual tax and form an integrated system. precludes certain kinds of deductions. This can be accomplished in a straightfor­ saying, "People don't think there is The best way to get some idea of how a ' ward manner when a flat rate income tax of any equity left in the system." flat tax would work is to take a look at one equal percentage is applied to both. The primary reason for rising public in operation. And, as luck would have it, A company's taxable income is computed cynicism concerning the present tax we've got one: It's on the Isle of Man in the according to the usual rules: structure is, first, the excessive Irish Sea. Starting with gross income, one subtracts: amount of taxes which Americans pay, For the past 20 years, the Isle of Man has direct expenses to acquire income, in­ and, second, the excessive degrees of operated with a flat-rate income tax of cluding reasonable entertainment; and Cb) complexity and inefficiency in the about 20 percent on individuals and corpora­ capital allowances. That leaves taxable system through which they pay them. tions alike. And in the last 10 years its na­ income. And 20 percent of that is the com­ tional income has risen nearly 500 percent. pany's income tax. Clearly, something needs to be done. Yes, the Isle of Man is small. But so is an It is especially noteworthy that in addi­ One alternative to such a loss of experimental culture in a biologist's labora­ tion to these customary deductions a compa­ faith in our present progressive tax is tory from which important principles have ny can subtract that part of its income as a flat-rate-type tax. Basically, such been drawn and hypotheses confirmed. The shall be distributed among its shareholders would feature a single rate at which island has a population of 66,000 operating of members by way of dividends, bonus, in­ everyone's income would be taxed, a modem economy with a mixture of manu­ terest or share of profit. As these amounts thus eliminating most of the array of facturing, finance, agriculture, construction are passed on to the recipients designated, and a wide range of services. they. become subject to the personal income deductions and exemptions in today's tax of the same 20 percent. In this manner tax structure. Such a proposal is sup­ llAINTAINS PUBLIC SERVICES the Manx system avoids the double taxation ported by a more than 2-to-1 margin The government of the island funds and of corporate income so controversial in our over the present system by the Ameri­ maintains its own education, health, nation­ own code. can people according to the Harris al insurance, social security, pensions, police, postal and other public services. The COMPASSIONATE TRJ:.\TllENT poll. level of social benefits is comparable to that There is a distinction between earned and Yet, many have discounted the flat­ in the United Kingdom. unearned income. Earned income is reduced rate tax and its numerous advantages It should be emphasized that the island is by one-fourth of the first 6,200 pounds, with on the basis that it is merely an ab­ totally independent from the U.K. except the standard 20 percent then applied. stract theory with no foundation in for defense, foreign affairs and diplomatic Lest anyone think that the successful op­ practice. But that is not, in fact, the representation, for which it pays to Britain eration of a flat-rate income tax forecloses case. On December 14, 1982, I made an 2.5 percent of its customs and excise re­ compassionate treatment of the individual, analysis of a flat-tax system in Hong ceipts. It has its own parliament, the Tyn­ it should be pointed out there is provision in wald, which dates back l,000 years. It is not the Isle of Man's system for age relief, small Kong which has been in existence represented in the British Parliament. income relief, dependent relative relief and since 1966. The testimony of Hong When we look at the Manx flat-rate tax relief when age or infirmity of the tax­ Kong provided one true-to-life exam­ income tax we are not looking at an anach­ payer causes a son or daughter to reside ple of the flat-rate tax in action. ronism <"Manx" is the adjectival form of with the taxpayer. Particularly contempo­ In 1962, the Isle of Man, located Isle of Man>. We are examining the results rary is a "housekeeper allowance" whereby halfway between England and Ireland, of a sophisticated overhaul of the island's a deduction is given to a widow who employs decreed a major overhaul of its income entire tax sytem spanning the 1970s and some other person to have care and charge tax system and instituted a flat-rate­ culminating in the "Income Tax Act of 1979." This modern system equality, the "housekeeper allowance" is ex­ emerges as an Innovative attempt to remedy tended also to a widower sinill.arly situated. the poorest levels of income. For the the confusing patchwork muddle to which In the Manx system the income tax de­ past 20 years, the Isle of Man has op­ most national tax systems are prone. Writ­ scribed is the main form of direct taxation. erated with a flat tax of about 20 per­ ten on a clear slate, it is the most concise There are no death or estate duties; no cent, and the results have been ex- and original example of a working flat-rate capital transfer or gift taxes; no wealth tax February 17, 1983 EXTENSIONS OF REMARKS 2527 nor any other capital levies; no capital gains policies would produce a rapidly expanding BENJAMIN ROSENTHAL taxes, with the exception of a narrowly pro­ economy, low inflation, full employment, scribed land speculation tax. and a balanced budget all at once. To Mr. In international financial circles the Isle Reagan's credit, this budget makes no at­ HON. ROBERT W. KASTENMEIER of Man may be viewed as a "tax haven." tempt to gloss over the harsh facts with sus­ OF WISCONSIN The inhabitants consider their tax code as a picious projections about economic perform­ IN THE HOUSE OF REPRESENTATIVES sensible solution to meeting their needs. It ance. My guess is that the assumptions in may be a tax haven for some but this need the budget may even be a bit on the con­ Thursday, February 17, 1983 not be a pejorative term. It would be a servative side, and that the economy will e Mr. KASTENMEIER. Mr. Speaker, credit to the strongest economy in the world grow faster in 1983 than the modest 3.1 % if it were also known as a haven from the President projects. I find this budget I would like to submit the personal unjust, confused and often contradictory more pragmatic and less ideological than thoughts of Judge Abner J. Mikva on taxation.• the previous two the President has issued. the passing of his very dear friend, Fifth, the budget begins to change the Ben Rosenthal. Had Ab been a THE PRESIDENT'S BUDGET way people pay their health care bills. Member of the House, his remarks Through a combination of tax increases and would have been included in the spe­ limits on reimbursements, the proposals cial order given Tuesday, February 15, HON. LEE H. HAMILTON shift to patients, doctors, other health care 1983. Since he is no longer a Member, OF INDIANA providers and hospitals a portion of the he has asked me to submit this tribute IN THE HOUSE OF REPRESENTATIVES costs now carried by the government, elb.­ ployers, and insurance companies. to Ben on his behalf. Thursday, February 17, 1983 Sixth, programs of primary benefit to the GENTLE BEN e Mr. HAMILTON. Mr. Speaker, I disadvantaged are cut more than 14% before Writing about Ben Rosenthal in eulogy is would like to insert my Washington inflation. The budget reduces the actual almost as hard as complimenting him to his level, not just the growth, of expenditures face. He always held himself out to be a report for Wednesday, February 16, for education, training, employment, wel­ tough, feisty, New York Congressman from 1983, into the CONGRESSIONAL RECORD: fare, food stamps, and legal services. I do the New York political world where nice The President has sent his budget for not approve of this unequal sacrifice re­ guys finished last. He suffered praise and 1984 to Congress. Its numbers are grim, and quired of the politically powerless and the compliments poorly. the choices it presents are unpleasant. The poor. Ben Rosenthal never quite carried off overall figures show receipts of $659.7 bil­ Seventh, the budget projects deficits of a that posture. There was too much passion lion, expenditures of $848.5 billion, and a size unimaginable even a year ago; at rough­ and compassion in Ben to be able to make deficit of $188.8 billion. ly $200 billion per year for three years, they people believe that he really was the world­ The most controversial recommendation are staggering. The deficit may still be as ly and cynical Congressman from New York. in the budget is the President's call for a high as $125 billion in 1988, a fact which That he cared about people was obvious for freeze on domestic spending. Such a freeze suggests that balanced budgets are things of all to see-not Just people as in humanity, would amount to an average cut of 4% the past. Indeed, one not-so-old administra­ but people as individuals. He could remem­ before inflation for much of the govern­ tion economist recently told me, "I do not ber a friend's birthday, albeit by teasing ment. It is interesting that the budget none­ expect to see a balanced budget in my life­ him about getting old. He could reach out to theless provides for a spending increase of time." an employee or an individual constituent $43.3 billion or about 5%-the same as the Eighth, the farmer may do as poorly as and bespeak their personal problems as vig­ expected rate of inflation-over the current anyone else under the budget. There is a orously as he bespoke the Eighth District of year. freeze on target price supports, a halving of the sovereign state of New York. Several features of the budget stand out: spending for farm subsidies, cuts in nutri­ He could complain with the best of veter­ First, to get a sense of priorities in the tion programs, and reductions in loans for ans about how poorly Congress performed, budget it is important to see which areas of emergencies, farm ownership, and rural and yet take fierce pride in the institution the budget are increased and which are de­ communities. and its traditions. I remember a stormy creased. Spending is up for defense, social Ninth, the President's proposal for a night many years ago when he and Con­ security, medicare, White House operations, standby tax increase, to take effect in 1986 gressman Jacobs were the prime movers in interest on the debt, and a few other areas if Congress approves all of his plans and the keeping the House in session though the such as military aid, highways, nuclear deficit remains above 2.5% of the GNP, is a night on Special Orders. There purpose was energy, and research. In all other areas, non-starter. In my judgment, Congress will to provide a forum for the anti-war views of spending comes down. There are cuts in never pass it. His budget calls for a host of many Members who were stifled in their ef­ legal services, federal pay and retirement, other tax changes. forts to address the issue through regular environmental protection, education, home Tenth, the President's freeze on spending House channels. The session was stormy be­ heating assistance, solar energy, and nutri­ is misnamed It consists of a delay in pay cause supporters of the war had denigrated tion for children. There is no new program raises for federal workers, a six-month sus­ the effort beforehand, and sought to torpe­ to create jobs. A reduction in spending for pension of cost-of-living adjustments, and a do it through quorum calls while it was training is recommended. hold on most other spending at levels close going on. The effort persisted and succeeded Second, the record amount requested for to those of 1983. Because the freeze has an nevertheless. When it was Ben Rosenthal's defense, $245.3 billion, represents a 14% in­ unequal impact and is not really a freeze at turn to speak that night, he went to the crease in spending. Hardware, not manpow­ all-it exempts military spending, for exam­ well of the House and said with enthusiasm er, is stressed. Spending for research and de­ ple-Congress will reject it. I find in the and emotion, "I am very proud of this velopment in the area of new weapons is in­ concept of a freeze the framework for House tonight." His colleagues had every creased, but military pay is frozen. In total, making substantial progress against the def­ reason to be proud of him that night as on about 69% of the $43.3 billion rise in total icit, but the concept will go nowhere if it is many other occasions. spending would go to defense. My prefer­ applied only to domestic programs. A freeze Like alm<>St all politicians, Ben Rosenthal ence would be to hold defense spending to a must be perceived as fair. It must hold wanted to be loved. The needles and barbs 5% increase after inflation. Also, I would spending down across the board. of those who disagreed penetrated his hide put more emphasis on manpower. Eleventh, spending under the budget will just as deeply as the hide of any f,reshman Third, the budget, from one perspective, is be more than 25% of the GNP, the highest Member. The brusque rejoinder or sharp a system which redistributes income. More percentage since World War II. It was only letter that he wrote in response to such crit­ than one quarter of the budget is made up 23% when Mr. Reagan took office, so de­ icism was Just a facade. He was as sensitive of checks sent out to older people. Two spite all the anti-government rhetoric, the as everybody else. But that sensitivity never thirds of this money is in the form of bene­ government continues to lay claim to an stopped him from taking on the next fight fits for social security recipients and civilian ever larger share of the nation's wealth. no matter how unpopular, no matter how and military pensioners. Most of the rest is Finally, the budget makes it clear that the many political problems that the fight in the form of benefits for medicare pa­ President's strategy remains unchanged. He would create. It could not have been other­ tients. favors higher defense spending, no tax wise. Ben Rosenthal's notion of a Congress­ Fourth, the economic assumptions under­ hikes, cuts in domestic spending, and big man was to lead, to be straight rather than lying the budget are realistic. Gone is the deficits. By pushing for future tax increases beloved, to solve people's problems rather rosy glow of overblown assumptions that and a bit less defense spending than he had than avoid controversies. And so, he was have distorted earlier budgets. For several intended, however, he may be telling Con­ almost always at the point position-on the years, Presidents have claimed that their gress he wants to compromise.e war in Vietnam, on civil liberties, on con- 2528 EXTENSIONS OF REMARKS February 17, 1983 sumer affairs, on every issue where he saw ation of construction is reduced from user charges on compliance with statu­ social justice at stake. 20 to 2112 years. This is accomplished tory guidelines is intended to minimize There were many complicated pieces to by eliminating the requirement for re­ disruption and displacement of mari­ this man. He could turn a tennis game into a world war with strategies and propaganda dundant studies and reviews before time commerce, while providing flexi­ to match. He could take on the power struc­ the initiation of project construction. bility to local ports in the design of an ture and lecture them for their arrogance While much of this bureaucratic red­ efficient, equitable, and effective deep­ and counsel an ally to be more politic and tape was justified when the Federal draft user charge mechanism. accommodating. He could be a faithful Government provided 100 percent of Finally, incorporation of a require­ friend and a gracious colleague without the financing for navigation improve­ ment for the preparation of a defini­ yielding an inch of his commitment to what ments, many of these requirements tive economic impact analysis to ac­ he thought was right. He lived his whole life are superfluous in a fiscal environ­ company any revised administration with a vigor and a verve that made him ment in which budget deficits will no known and reknowned throughout the proposal submitted to the Congress country. longer permit the continuation of tra­ that calls for the imposition of a uni­ There will never be enough Ben Rosen­ ditional funding practices. versal requirement for local cost shar­ thals in the public arena and such a death Second, implementation of a pack­ ing of deep-draft navigation improve­ will always be untimely. That we should age of procedural reforms to stream­ ments and maintenance dredging. lose him at so young an age is especially line the routine process of mainte­ In my judgment, there remain fun­ tragic. But he did more in his almost three­ nance dredging of federally authorized damental questions as yet unanswered score years than most people could even and maintained channels in the 189 before a consensus can be reached on dream about. The tragedy of losing him is deep-draft commercial ports compris­ overwhelmed by our great fortune in having broadening the scope of port develop­ ing the national port system-as well ment legislation beyond that which I him as friend and colleague and gentle man as associated secondary access chan­ that he was.e nels and berthing areas maintained by am introducing today. Among these non-Federal interests. questions are: PORT DEVELOPMENT AND NAVI­ Together, these two elements of the What cost-recovery formula will GATION IMPROVEMENT ACT legislation have been collectively re­ govern the allocation of Federal and OF 1983 f erred to as the "fast-tracking" provi­ local expenditures for deep-draft navi­ sions. They have been embraced by gation improvements and channel virtually all interested parties as es­ maintenance in the future? HON. MARIO BIAGGI How should such a formula be deter­ OF NEW YORK sential ingredients of comprehensive port development legislation. mined? IN THE HOUSE OF REPRESENTATIVES Third, imposition of a cost-sharing On the basis of channel depth in the Thursday, February 17, 1983 formula for deep-draft navigation im­ case of new construction? e Mr. BIAGGI. Mr. Speak.er, I intro­ provement projects in excess of 45 feet On the basis of some fixed percent­ duce today the Port Development and in depth. This was determined to be age of average maintenance costs na­ Navigation Improvement Act of 1983. the threshold in channel depth that tionally in the case of maintenance This bill is substantially identical to separated the general needs of mari­ projects? H.R. 4627-legislation I introduced in time commerce from the additional Should some cap be imposed above the 97th Congress and the only port depth requirements of specialized some national ceiling with the differ­ development bill reported to the classes of vessels operating in the ence in maintenance costs above that House. liquid and dry-bulk trades. celling a local responsibility? In his state of the Union message, The formula provides for equal shar­ What is the scope or expenditures the President gave new impetus to ing of the cost of new projects in that should be encompassed in any early bipartisan congressional action excess of that depth between the Fed­ cost-recovery formula adopted? on this legislation. At the same time, eral Government and local ports. The What mixture of general revenue he fundamentally shifted the focus of costs of additional maintenance would and deep-draft user charge fees levied public and congressional debate on be shared between the Federal Gov­ on a national and local basis should be this issue away from narrow fiscal con­ ernment and each local port on the adopted to permit such a fundamental cerns surrounding the Federal role in basis of a 25 to 75 Federal/local for­ shift in intergovernmental fiscal re­ financing of navigation improvement mula. The local cost-sharing obligation sponsibility with the minimum nega­ and maintenance dredging in the lim­ may be met either through the levy of tive economic impact? ited context of deep-draft coal ports. local deep-draft user charges or And, last, what economic impacts He clearly linked the need for enact­ through some other financing mecha­ will the levy of deep-draft user charges ment of comprehensive port develop­ nism acceptable to the Secretary of have on the volume and distribution ment legislation to the stimulus effect the Army. of international trade and domestic it would have upon trade expansion Under this arrangement, actual commerce in the United States? and our international balance of pay­ project construction could be under­ This legislation offers at least par­ ments, revitalization of our basic in­ taken either by the Federal Govern­ tial answers to these questions and­ dustries-such as steel, mining, con­ ment-subject to a partial payback ob­ by linking the issues of fast-tracking, struction, and shipbuilding-rebuild­ ligation on the part of the local port­ cost-sharing, and deep-draft user ing of our transportation infrastruc­ or by the port itself-under Federal charges-offers an approach to resolv­ ture; and, most importantly, job cre­ supervision with the provision of up­ ing these underlying issues in an effi­ ation. front Federal financing assistance. cient and equitable manner. The legislation I am introducing Under this legislation, new construc­ The legislation was originally con­ today responds to these critical nation­ tion of channels of less than 45 feet in ceived as a means of expediting the al needs. It offers a comprehensive ap­ depth would remain an exclusively construction of a limited number of proach to breaking a 7-year stalemate Federal fiscal responsibility. deep-draft conventional ports capable in which not a single new deep-draft Fourth, guidelines have been includ­ of accommodating a new generation of navigation project has been author­ ed applicable to the levying or port­ projected deep-draft colliers in the ex­ ized. It contains a package of generic specific deep-draft user charges de­ panding world steam coal trade. That reforms including: signed to encourage the implementa­ impetus has diminished-at least for First, overhaul of the authorization tion of a uniform and nondiscrimina­ the near term-until the national and process for deep-draft navigation im­ tory system of fees in each eligible global economies begin to recover. provements whereby the time period port. Conditioning the consent of Con­ However, viewed in the broader con­ required from feasibility study to initi- gress for local port levy or deep-draft text as a stimulus for trade expansion, February 17, 1983 EXTENSIONS OF REMARKS 2529 infrastructure improvement, industrial This percentage contribution has · A BUDGET FOR JOBS AND revitalization, and employment gen­ doubled over the past 30 years. This is PRODUCTIVITY eration, early consideration of compre­ the direct result of the investment of hensive port development jobs legisla­ over $5 billion by State and local gov­ HON. ROBERT J. LAGOMARSINO tion by the 98th Congress is a logical ernments and port authorities in successor to enactment of the Surface shoreside facilities since World War II OP' CALIFORNIA Transportation Act of 1982. and $40 billion in cumulative public IN THE HOUSE OF REPRESENTATIVES Economic conditions clearly dictate and private investments in marine fa­ Thursday, February 17, 1983 the need for a jobs/infrastructure stimulating legislative package. Twelve cilities in the United States. An addi­ .e Mr. LAGOMARSINO. Mr. Speaker, million Americans are out of work tional $5 billion in non-Federal invest­ I believe our country finds itself at a today-10.8 percent or 1 in 9 persons ments will be needed to meet the de­ watershed in its history. In the last in the work force. An additional 1.8 mands of expanding international few years, living standards have stag­ million Americans are reportedly too trade before the end of this decade. nated, as our productivity has fallen to discouraged to continue seeking em­ This is in contrast to the estimated the lowest level of any of the Western ployment. Four million traditional total Federal expenditure of $4.4 bil­ industrial powers and Japan. Unless manufacturing jobs have been lost lion in improving and maintaining the robust productivity growth is restored, over the last decade-250,000 of those navigability of deep-draft commericial the steady rise in living standards we in New York City alone. The American ports since 1824. have known through most of our his­ economy is said to be undergoing All of these expenditures have been tory will be no more. America will structural shifts from manufacture to made pursuant to a 200-year-old part­ likely lose its position as the leading service-related activities-further re­ nership of constitutional origin be­ economic power to Japan by the next ducing the likelihood that many of tween the Federal Government and century. The following excerpt from these jobs in traditional industries will the States under which the Federal the 1983 Report of the Council of Eco­ ever reappear. nomic Advisers-pages 83 and 84-ex­ Government has undertaken to main­ plains the long-term consequences of If this is indeed the case, a national tain and improve the navigability of program of port modernization offers our productivity crisis: channels-and the States, acting During the 1970s, productivity growth in a unique opportunity to simultaneous­ through local ports, have fostered the ly rebuild our transportation infra­ the United States decelerated rapidly. Be­ structure and revitalize basic indus­ development of complementary shore­ tween 1948 and 1967 the growth rate of pro­ tries such as mining, steel production, side facilities to meet the needs of ductivity was 3.1 Over the last decade that partner­ percent, compared to 2.3 percent between capital investment. This will result in 1967 and 1973 and only 0.8 percent between increased productivity and competi­ ship has been strained by the absence 1973 and 1981. tiveness of U.S. industry and, at the of a coherent and stable Federal policy The consequences of reduced productivity same time, create new opportunities in toward port development. There has growth for our standard of living over the trade-related service activities such as not been a single new deep-draft navi­ long run are greater than those of any other gation project authorized for 7 years. current economic problem. In 1981 the banking, insurance, data processing, American economy produced approximately and shipping. Regulatory delays and bureaucratic $12, 780 worth of output per capita. Had pro­ The port industry is already credited redtape have delayed even the routine ductivity growth continued at the 1948-67 with creating 1 million jobs in the na­ maintenance of the existing system. rate during the 14 years subsequent to 1967, tional economy. For every 600 tons of This is reflected in delays of up to 2 output per capita would have reached import and export cargo handled, a years in the renewal of periodic main­ $16,128 in 1981, 26 percent higher than the new job is created. Commercial port tenance dredging permits for existing actual value. As a standard of comparison, operations annually contribute $70 bil­ the recent recession reduced per capita authorized channels. When mainte­ output by only 4 percent between the third lion to the gross national product; $10 nance dredging is performed, the cost quarter of 1981 and the fourth quarter of billion in Federal taxes; $5 billion in is rapidly becoming prohibitive. This is 1982, less than one-fifth the reduction at­ State and local taxes; and $27 billion demonstrated by the 400-percent in­ tributable to the productivity shortfall. As in business and personal income to the crease in maintenance dredging costs time passes, the consequences of reduced national economy. The $6 billion in over the last decade-much of which is productivity growth are compounded. h1- customs receipts alone collected at sea­ attributable to regulatory delay. creasing the productivity growth rate by 2 ports represents the fourth largest percentage points annually would more source of revenue to the Federal Mr. Speaker, the President has made than double our material standard of living Treasury. port development a priority issue for by 2020, compared to the level it would One in every five jobs in the United the 98th Congress. The issue of port reach otherwise. development is inseparable from the The productivity slowdown is not reliably States in agriculture, manufacturing, attributable to any single cause or combina­ and services is related to import and need to rebuild our transportation in­ tion of causes. Various analaysts have sug­ export trade in one way or another. frastructure, revitalize our basic indus­ gested that higher energy prices, regulatory Three out of every four bushels of tries, and expand our international changes, reduced research and development wheat produced in this' country are for trade as the proper path toward eco­ spending, reduced opportunities for techni­ export. nomic recovery. I look forward to cal innovation, the changing composition of working with the members of the the labor force, and changing worker atti­ The United States is the largest ex­ tudes, as well as reduced capital formation, porter of grain and coal. Ninety-nine Committees on Merchant Marine and are responsible for the productivity slow­ percent of the U.S. international trade Fisheries and Public Works and Trans­ down. An accurate accounting of the sources by volume passes through the national portation-as well as the administra­ of the slowdown is probably impossible in network of 189 deep-draft commercial tion-in seeing this important legisla­ light of the multitude of competing expla­ ports. The President aptly character­ tion enacted.• nations and the statistical difficulties associ­ ized the strategic relationship between ated with distinguishing between their rela­ tive effects precisely. port development and expansion of Many of the possible causes of the produc­ international trade, promotion of eco­ tivity slowdown are probably not reversible nomic recovery, and increased employ­ through public policy. There is relatively ment opportunities in his state of the little the Federal Government could have Union message. Currently, 10 percent done to offset the negative effect of sharp of gross national product is attributa­ increases in oil prices or, for that matter, to ble to international trade. influence changing cultural attitudes 2530 EXTENSIONS OF REMARKS February 17, 1983 toward work. Changing the rate of capital ing more and more of the Nation's and by three-fifths as a portion of the gross formation, however, is a principal way in wealth and investing less and less in national product. It would stlll rise under which Federal economic policy can affect the future, thereby continuing the Reagan's program-from 9.5 percent of the productivity growth. GNP in 1980 to 9.9 percent in 1988. Increasing the rate of capital formation steady erosion of the productive capac­ The main focus of critics is defense. wlll raise productivity growth in several ity without which we cannot raise our Again, history places the issue in a clearer ways. More rapid capital formation results, standard of living, support needed light. Even with the President's buildup, de­ on average, in workers having more equip­ social programs, or defend the country fense spending from 1970 to 1980 would rise ment at their disposal. In addition, increases against a ruthless, ambitious adver­ only 1.7 percent a year. Assuming adoption in investment reduce the average age of the sary? of the President's cuts, this is less than half capital stock, permitting physical assets to The gentleman's article in full fol­ of the 3. 7 percent annual increase in non-de­ embody more recent technological innova­ lows. I call upon my colleagues on the fense spending over the same period. The tions. Technological development and the other side of the aisle to face up, as table shows that, as a portion of the gross level of capital formation are intertwined, national product, defense because the development of more efficient has President Reagan, to this funda­ would remain significantly below the 9.9 and sophisticated capital goods occurs when mental issue. Give us not a rag bag of percent going to entitlements in 1988. The the demand for new capital goods increases. cliches and nostrums chosen solely to defense figure-which is comparable to or The legacy of past policies, which have ar­ avoid giving offense to the social inter­ lower than the levels of the 1950s and '60s­ tificially depressed saving and investment, ests, but a coherent program to restore represents a reasonable reordering of prior­ provides a second reason for increasing the our productive capacity, without ities in the face of the Soviet Union's un­ rate of capital formation. As described which all Americans, rich and poor, precedented mllltary buildup. below, this discrimination against capital young and old, will have no future. If Like my colleagues, I will give the defense formation has taken many forms, including you do not have such a program, then budget careful scrutiny, but I will also note tax policy, monetary policy and recurring that the President's 1984 proposal is only Federal budget deficits. Although there the President's ought to be approved $6.3 blllion, or 2. 7 percent above the 1984 exist instances of market failure, a market forthwith. level recommended by President Jimmy economy can generally be expected to allo­ DEFENSE Is GETTING ONLY !Ts FAIR SHAB.E or Carter in January, 1981. Reagan is standing cate resources in an efficient way. When THE BUDGET up to the fundamental issue. Can we go on public policies systematically discriminate consuming more and more of the nation's against one type of spending, however, wealth and investing less and less in the there is a strong persumption that too little President Reagan has proposed a pro-Jobs budget that asks sacrifice of all Americans. future, thereby continuing the steady ero­ of it wlll take place. The chorus of protest comes from many sion of the productive capacity without A related and final Justification for in­ special interests that confuse their priorities which we cannot raise our standard of creased capital formation comes from a living, support needed social programs or comparison of the total pretax return to in­ with the country's needs. Our central fiscal task is to cut substan­ defend the country against a ruthless ambi­ vestment with the return received by pri­ tious adversary? vate investors. Estimates suggest that the tially the huge prospective deficits in order to further reduce interest rates, raise invest­ The Democrats like to pose as the friends total pretax return to investment in corpo­ ment from what has been the lowest level of the Jobless, the poor and the elderly. But rate capital, as measured by its pretax mar­ all that they have to say about restoring our ginal product, is about 11 percent. This among Western industrial powers and means that $1.00 invested today yields socie­ Japan, and nurture sustained, non-inflation­ nation's productivity is to raise taxes, cut ty $1.11 next year, or alternatively a perma­ ary growth. The President, promises to defense and keep out cheaper foreign prod­ nent yield of 11 cents. While the total achieve this largely by curtailing the most ucts-all counterproductive measures. For pretax return fluctuates from year to year rapidly rising part of the budget: middle­ the unemployed, they promise a quick-fix with cyclical conditions, studies have tended class entitlement programs, led by Social Se­ Job program, to be paid for with the Jobs of to find that it has stayed within the range curity citizens truly in need, creates real dis- February 17, 1983 EXTENSIONS OF REMARKS 2531 tress for hundreds of thousands of urge them to put aside the sensation­ CORRECTING AMENDMENT TO H.R. 1227 American households. alism that has surrounded this issue Page 2, amend lines 7 through 10 to read Consumers in my district share my and get on with the task.e as follows: concern for this issue in overwhelming <2> in subparagraph - numbers. How are we to respond? It by striking out "(A)" and inserting in would be politically easy to embrace DEBT CEILING lieu thereof "<1>", the so-called quick fixes which have by striking out "will apply <1>" and in­ been introduced in this House and in HON. DAVID DREIER serting in lieu thereof " will apply", OF CALIFORNIA by striking out "and <11>" and inserting the other body. I could certainly earn in lieu thereof", will apply, in the case many votes by embracing and support­ IN THE HOUSE OF REPRESENTATIVES of systems established after January 1983, ing a price freeze on gas prices at the Thursday, February 17, 1983 to substantially all payors for inpatient hos­ wellhead or by supporting legislative pital services in the State within three years restrictions on the operation of gas e Mr. DREIER of California. Mr. after the date the system first takes effect, purchase contracts. But I am not sure Speaker, recently, I introduced House and .wfil apply", and that will solve the problem, either now Resolution 53, legislation which will by adding at the end the following require a two-thirds vote on any legis­ new clause:e or in the future, when additional sup­ lation that will increase the statutory plies of natural gas will be required. limit on the public debt. My resolution Mr. Speaker, only 5 years ago we will make it more difficult to increase MAINTAINING THE ELDERLY AT were told that this country was run­ the public debt and will eliminate the HOME: AN ALTERNATIVE TO ning out of gas. We were told that no INSTITUTIONALIZATION matter how high the price, our supply practice of raising the debt limit by potential was limited. That is certainly simply voting for a budget resolution. true in the long term because natural According to House Rule 49, when HON. MARIO BIAGGI the House accepts a conference budget resources are finite, but, even with the OF NEW YORK resolution, a different bill automatical­ flaws in the Natural Gas Policy Act, IN THE HOUSE OF REPRESENTATIVES domestic reserve additions almost ly setting the debt limit to the amount matched production in 1981 and 1982. in the resolution is created and is con­ Thursday, February 17, 1983 I do know that substantial additions to sidered to have passed the House. • Mr. BIAGGI. Mr. Speaker, on Janu­ reserves were a result of incentives Unlike the Senate, the House has in­ ary 3, 1983, I introduced H.R. 76, a bill within the NGPA to explore for un­ stitutionalized the debt celling debate which would provide an important im­ controlled gas; gas found in reservoirs in favor of inflation and increased par­ petus to the establishment of alter­ deeper than 15,000 feet, and gas con­ ticipation by the Federal Government nate living arrangements for elderly tained in tight-sands reservoirs which in credit markets. citizens who either live alone or are also receives an incentive price. But, I For example, in 1979, the inflation forced into unnecessary institutional­ have also been told by producers that rate hit 10 percent while the Federal ization and for their families who wish there has been no exploration for a lot participation rate in domestic credit to support their dependent relative in of conventional, shallower gas because markets hit a low of 18.9 percent. In the family home. the producer cannot achieve an ade­ 1982, the inflation rate was 3.9 percent Presently, approximately 11 percent quate rate of return to cover his risk but the participation rate surged to of the Nation's population is over age of finding nothing. Now that does not 48.9 percent. 65. The number of elderly living alone make sense. As these statistics illustrate, there has increased substantially. Addition­ I am not sure that freezing prices at hasn't been complete congressional ally, the number of elderly living out­ this time is a very wise move. My con­ consideration of all the options avail­ side the extended family has changed stituents are both users and producers. able to our colleagues. A required two­ drastically. Twenty years ago, 46 per­ I have agriculture, industry, and com­ thirds vote on legislation to increase cent of those persons over 65 lived mercial interests as well as homeown­ the statutory limit on the public debt with their children. By 1975, this ers, all of whom are concerned about would lessen the bias toward "crowd­ figure had dropped to 18 percent. The what we are doing with natural gas ing-out" private investment or the cre­ number of institutionalized elderly has policy. We must have a policy that ation of inflation. also risen, due to a variety of variables. works now to keep natural gas prices Mr. Speaker, to the people we repre­ By the year 2030, there will be 55 mil­ at reasonable levels as well as a policy sent, the debt celling is an important lion persons over the age of 75 in our that will provide adequate supply in symbol. Voting to raise the debt cell­ country, representing 22 percent of the middle of this decade and later. ing is tantamount to an admission of the population. It is essential that we Economic recovery and a strong na­ failure in the fight to reduce spending, now consider alternatives to tradition­ tional industrial base demand that of to control the deficit, and generally, to al delivery modes of health care and us. A band-aid approach for now may create a positive economic atmosphere social services to this population. The be the easy way out, but for the long for the hardworking American taxpay­ continuum of care for this population, term, it is the wrong approach. er.e which includes such services, should Therefore, Mr. Speaker, I urge my be expanded to include all viable alter­ colleagues to reject these quick fix MEDICARE REFORM ACT natives. ideas. I urge my colleagues in the ap­ H.R. 76 provides for a $500 tax credit propriate committees on both sides of HON. RON WYDEN to those families and individuals who Congress to get on with the job of de­ OF OREGON maintain an elderly dependent in their veloping a sane, long-term solution. I IN THE HOUSE OF REPRESENTATIVES homes for over one-half of the taxable do not know that total decontrol is the year. The availability of a tax credit answer, but I do know that the Natu­ Thursday, February 17, 1983 would ease the major obstacle that ral Gas Policy Act is a flawed bill. I be­ • Mr. WYDEN. Mr. Speaker, I recent­ many families face in caring for their lieve in maximum development of U.S. ly introduced H.R. 1227, the Medicare family members who are 65 or older: resources, and I have supported that Payment Reform Act of 1983. Since The cost of such care. By offering a belief in this House. that time, I have discovered that a sec­ tax credit to these families, an incen­ I urge my colleagues to work with tion of that bill was inadvertently left tive to maintaining the elderly person the consumers, the producers, the out of the final printed version. I in the home is created. The resultant transporters, and the distributors to would like to request that the full text money may be utilized to defray the come up with a policy we can debate of that section be printed below for cost of supporting the elderly family and vote for, or against, on this floor. I the RECORD. member. 2532 EXTENSIONS OF REMARKS February 17, 1983 Studies have shown that it is gener­ and diverse. Endorsement of such a trying to make international opinion believe ally families, not the Government, proposal has been received from the that the subversives have the support of the people. This is one more exploitation of the that provide the most care for the el­ delegates at the 1982 White House Salvadorans' tragedy and sorrow for politi­ derly. The Health Care Financing Ad­ Conference on Aging, the 1980 White cal propaganda purposes. ministration has estimated that be­ House Conference on Families, as well 4. They caused the deaths of a least 12 de­ tween 60 and 80 percent of the care re­ as the Urban Elderly Coalition. Fur­ fenseless civilians, including children, ceived by the impaired elderly is pro­ ther, the 1981 National Council on women and elderly people, without counting vided by family members or friends Aging survey, conducted by Louis the casualties caused by the armed forces. who are not compensated. In addition, Harris & Associates, found overwhelm­ In the face of such actions, which are a information from the field clearly ing support for giving a "tax break" to flagrant violation of human rights and of points to the family as the preferred families that provide health care at the international agreements established in provider of services to the elderly. the United Nations' Universal Declaration home to the elderly. on Human Rights, the Human Rights Com­ However, public programs currently As an original member of the Houe mission of El Salvador energetically protests provide more support for institutional Select Committee on Aging, I am espe­ this savage terrorist act and joins the grief forms of long-term care than for com­ cially familiar with those problems of the country's people, especially the munity-based services. This bias which face the elderly today as well as heroic residents of the city of Berlin, who toward institutional care under public those facing family members who wish despite everything that happened in those programs is a major factor limiting to maintain older relatives in their distressing moments, courageously repudiat­ the spread of community-based long­ homes. H.R. 76 will seek to encourage ed the attack on their city by the terrorist term-care efforts. Furthermore, demo­ the care of elderly in the home while groups of the FMLN-FDR. The commission graphic changes regarding the family also demands: retaining medicare benefits for eligible 1. An immediate halt to the indiscriminate are likely to have an impact on the seniors. My bill will provide incentives attacks on defenseless civilians. continued ability of families to provide to home care by the family and will, at 2. That in accordance with the most ele­ care for their elderly dependents. The last, recognize the full potential of mental principles of humanity and justice increasing divorce rate and the decline support that the family can bring to there be respect for the lives and security of in the birth rate, as well as the in­ the elderly and the source of wisdom noncombatants and for their right to live in creasing participation of women in the and strength that the elderly can peace and freely express their political work force may impinge the desires of bring to family members. I urge my views and give their moral support to who­ families to open their homes to elderly ever they believe deserves it. colleagues to join me in this timely 3. That the FMLN-FDR refrain from com­ family members. and important initiative.• mitting acts of vandalism like those that oc­ In light of these facts, efforts must curred in the city of Berlin because they are be made to support families that wish not only violating the rights of those from to maintain their elderly family mem­ HUMAN RIGHTS COMMISSION whom they steal, but also those thousands bers at home rather than turning to REPORT ON BERLIN, EL SALVA­ of poor residents whom they leave without institutional care provided under DOR food, medicine and essential water and elec­ public programs. The legislation which tric services for long periods. I have proposed will provide financial HON. ROBERT J. LAGOMARSINO 4. That the FMLN-FDR stop the senseless incentives to families, thus encourag­ destruction of job sources, means of commu­ 01' CALIFORNIA nications and the infrastructure in general ing them to cooperate in home sup­ IN THE HOUSE OF REPRESENTATIVES of the Salvadoran people. The only result of port of the elderly. Thursday, February 17, 1983 this destruction is to impose on all the Sal­ A supplementary benefit to the tax vadoran people the most cruel and extended credit proposal is that it would help to e Mr. LAGOMARSINO. Mr. Speaker, suffering to which any country of the Amer­ relieve some of the strain placed on I wish to call to the attention of my ican continent has been subjected in this family income which often manifests colleagues the following report issued century. San Salvador, 6 February 1983.e itself in acts of abuse. Two important by the Human Rights Commission of studies of domestic violence against El Salvador on the recent takeover of the elderly were conducted at the the city of Berlin, EI Salvador, by left­ OIL SHALE LEGISLATION Chronic Illness Center of Cleveland ist guerrillas. and at the Center of Aging at the Uni­ RIGHTS COMKISSION DECRIES FMLN HON. DAN MARRIOTT versity of Maryland. Both studies ACTIONS IN BERLIN OF UTAH identified material abuse as one of the The Human Rights Commission of El Sal­ IN THE HOUSE OF REPRESENTATIVES major forms of domestic violence vador, concerned about the events in the against the elderly. The Subcommittee city of Berlin, and at the request of a group Thursday, February 17, 1983 on Human Services, which I chair, has of people of Berlin living in San Salvador, e Mr. MARRIOTT. Mr. Speaker, traveled on 4 February to that city, where held several hearings since 1979 on with deep sorrow and humanitarian feelings today I am introducing the same oil abuse of the elderly and has verified the commission was able to verify that: shale legislation which passed the and highlighted the conclusions of 1. The FMLN-FDR [Revolutionary Demo­ House during the last Congress. The these two studies. The adoption of a cratic Front] indiscriminately attacked the importance of this legislation lies in tax credit would begin to ease the fi­ civilian population of that city, causing the fact that it will remove the institu­ nancial strain that so many families fires; looting government offices, stores and tional barriers which have hindered encounter when caring for an elderly private residences, and causing, with its con­ commercial development of oil shale member in the home and can promote tinuous shelling, the exodus of thousands of on Federal lands to date. people, including children, elderly people healthier intergenerational living ar­ and women who tried to find a safe place to Lands in Colorado, Utah, and Wyo­ rangements. protect their lives. ming contain over 1.8 trillion barrels If no preferred alternative to cur­ 2. At no time could the city of Berlin rep­ of shale oil, of which 600 billion bar­ rent services and choices is made avail­ resent a military or strategic objective since rels are recoverable with known tech­ able to the growing population of el­ there were only 43 members of the armed nology. derly and their families, the elderly forces-policemen and national guards­ Since the first Federal oil shale will be forced into living arrangements men-in the city. tracts were leased in the midseventies not of their choice, with the possibility 3. Through military and psychological none has yet reached commercial pro­ pressures, the civilians were forced to go to of resultant losses of health status and the city's park, where they had to partici­ duction. This deplorable state of af­ emotional well-being. pate in rallies that were filmed by foreign fairs is due in part to the fact that Support for the idea of a tax credit newsmen. The films have subsequently been when the oil shale provision of the for families which care for the depend­ shown in several countries for the sole pur­ Mineral Leasing Act was written in ent elderly in the home is extensive pose of confusing international opinion, 1920, no one knew what problems

• February 17, 1983 EXTENSIONS OF REMARKS 2533 would attend the actual development The bill clarifies the Secretary of sponsible development of our oil shale of oil shale. Now since prototype leas­ the Interior's authority to issue multi­ potential and I urge my colleagues to ing has occurred and experimentation mineral leases since substantial quan­ give it serious consideration.e has taken place, the shortsightedness tities of saline minerals-dawsonite, of the original oil shale provision of nahcolite and halite-are associated the Mineral Leasing Act is becoming with Piceance Creek Basin oil shale re­ MORE RUSSIAN STUDIES evident. sources. NEEDED One of the major impediemnts has Although the Department of the In­ been the lack of authority for the Sec­ terior believes it has the authority to HON. LEE H. HAMILTON retary to allow surface use of addition­ lease the saline minerals along with al lands not located within the oil the oil shale, the General Accounting OF INDIANA shale lease. In some of the richest Office has questioned this authority. IN THE HOUSE OF REPRESENTATIVES shale areas, the most efficient mining In order to test multimineral technolo­ Thursday, February 17, 1983 operations cannot be accomplished if gy and its environmental acceptability e .Mr. HAMILTON. Mr. Speaker, I the processing plant and spent shale and to conserve the mineral resources, would like to call to the attention of disposal are located on the lease site. this bill clearly restates this multimin­ my colleagues the following editorial The bill I am introducing today eral leasing authority. from the November 8, 1982 edition of would authorize the Secretary to issue The language of this bill provides the New York Times: leases for purposes other than mining for consultation by the Secretary with necessary in support of oil shale recov­ the Governor of the affected State on [From the New York Times, Nov. 8, 19821 ery operations, including the disposal stipulations in the lease and is meant RUSSIAN LESSONS of oil shale waste and the materials re­ to focus discussion on the specific con­ In few fields do so many rely so much on moved from mined land and the build­ cerns of the State vis-a-vis the Federal the brains of so few as in Soviet studies. ing of plants, reduction works and You could fit around a card table all the interest. Last Congress the Interior Americans who are bilingual experts on other facilities connected with oil Committee added this language to ex­ Soviet policy in Africa. Or China. Or any­ shale operations. The bill limits this press its support for the existing prac­ where. That point alone makes powerfully offsite leasing authority to only those tice of consultation with the State in plain the wisdom of W. Averell Harriman's leases ancillary to a Federal oil shale the belief that such consultation will gift of $11 million to Columbia University lease. continue to result in serious consider­ for a new Institute for the Advanced Study Oil shale leasing in Wyoming and ation of the concerns of the citizens of of the Soviet Union. Utah is further hidered by the fact the affected State. Still, there is this objection. "Why go into that the deposits in those States are Finally, the bill provides that an oil a field in which there is not any hope of finding employment?" asks a disillusioned nor rich enough to support a commer­ shale lessee may request to have in­ recent graduate in Soviet studies, in a letter cial operation within the confines of a cluded in his lease a provision for ad­ to The Washington Post. In fact, there are 5,120 acre tract. Accordingly, the bill vance rental payments to be made in more jobs than available specialist.s. By one retains 5,120 acres as the maximum any year and credited against a subse­ estimate, 1,600 highly trained Soviet and size of a Federal oil shale lease, but quent year. This provision is intended East European experts are needed in public will permit the Secretary to increase to assist local communities by provid­ and private sector jobs, not including high the amount of the acreage that can be ing impact assistance funds specifical­ school teachers, while only 1,074 are avail­ included in an oil shale lease when he ly earmarked for this purpose. able. But there is another explanation for dwin­ determines that a larger area is re­ This oil shale bill is solid and sound dling interest. Too many people believe that quired to permit long-term commercial because it specifically addresses the the market for Soviet studies is confined to operations. In making this determina­ legal problems which are currently security-related jobs, to the exclusion of tion the Secretary must consider the keeping the oil shale development work on social and cultural issues. There is reserve potential of the specific tract from achieving its commercial poten­ more going on in Russia than missile con­ to be leased and document his finding tial. Oil shale has a lot to offer us, for struction-not least an interesting revival in that additional acreage must be in­ it is potentially the most attractive Soviet films, no longer simply sterile vari­ ations of boy-meet.s-tractor. cluded in the lease to render it eco­ source of liquid fuels from a synthetic A glimpse of what we are missing was pro­ nomically viable. Furthermore, he fuel source. It takes less energy to con­ vided by Marc Greenfield's recent account may not issue any lease in excess of vert oil shale's kerogen to gasoline in The Times Magazine of his two years as 15,360 acres. With this provision it will than it does to convert coal to gasoline an English editor at a Soviet press agency in no longer be necessary for oil shale de­ and environmentally, it may be more Moscow. How much he tells of workaday re­ velopment to be concentrated in Colo­ desirable. Now no one is going to claim alities in the sentence he heard repeatedly rado, where the richest reserves are at this stage that we know all the envi­ from Soviet workers: "They pretend to pay found, thus limiting the impacts on ronmental impacts of oil shale devel­ us and we pretend to work." that State while permitting other opment or, on the other hand, that With any luck, Gov. Harriman's benefac­ tion could help turn an adverse tide. It may States to share in the development of water availability is not a problem. encourage Congress to endow more Russian the resource. The technology for commercial devel­ studies. Americans who complain that the Present law limits to one the opment is still untried. But it is in part Soviet Union is a closed society need to ac­ number of oil shale leases which may because we have failed to give Ameri­ knowledge that we have done politically be owned by one person, corporation, can enterprise the backing necessary little to open our own minds.e or association. This bill includes some to their operations that we do not yet flexibility in this limitation so that have a proven technology or answers when the resources of any lease are to our environmental questions. SAN JOSE MERCURY within 15 years of being depleted, the We must remove institutional bar­ lessee may qualify for an additional riers to full scale development while HON. NORMAN Y. MINETA lease. retaining reasonable safeguards and OF CALIFORNIA This bill further allows the Secre­ regulations if we want to permit re­ IN THE HOUSE OF REPRESENTATIVES tary to lease oil shale parcels to avoid sponsible development of oil shale to the bypass of small acreages of Feder­ go forward. It is important that Amer­ Thursday, February 17, 1983 al oil shale resources which could not ica know what the real potential of its • Mr. MINETA. Mr. Speaker, on otherwise be mined economically with­ oil shale resources is, and this legisla­ behalf of Congressman DoN EDWARDS out counting such bypass lease against tion is designed to lead us toward that and myself, I would like to commend a company's lease ownership limita­ understanding. I am convinced this and congratulate those who produce tion. bill offers the soundest solution to re- the San Jose Mercury. 2534 EXTENSIONS OF REMARKS February 17, 1983 For years, we have enjoyed and World War II liberty ship, the John Our merchant mariners and ship­ relied upon the Mercury, and we were W. Brown. Today, I am reintroducing yard workers have long been neglected delighted to hear that this outstand­ that legislation, along with Congress­ and ignored; however, this legislation ing newspaper has once again won the men ADDABBO, WEISS, OWENS, TOWNS, will create a suitable memorial to the professional recognition it merits. Last MOLINARI, and ScHUMER. valiant men and women who served weekend, the California Newspaper The memorial will center around a with distinction, and I ask my col­ Publishers Association gave its highest maritime museum and would serve as leagues to join me in supporting it.e honors to the San Jose Mercury. a . recognition of the valiant men and For the third straight year, the Mer­ women who constructed and operated cury's editorial pages were judged the greatest fleet of merchant vessels LET US REPEAL THE 10-PERCENT California's best. The Mercury also in the history of the world. These WITHHOLDING TAX ON INTER­ harvested the first-place prize for its ships transported arms, supplies, and EST coverage of business, while individual forces, to battlefields in Europe, Mercury staff members, Mary Jo Africa, and the Far East. HON. W ASPIN Moss, Susan Ager, Steve Johnson, and The risk which existed on these ves­ OF WISCONSIN Pete Carey won recognition for superi­ sels is demonstrated by one grim sta­ IN THE HOUSE OF REPRESENTATIVES or photography, writing, and indepth tistic: During World War II, merchant Thursday, February 17, 1983 reporting. seamen suffered a greater percentage All of this validated the Mercury's of fatalities than any branch of the • Mr. ASPIN. Mr. Speaker, the new broadest, finest award. Assessing gen­ armed services, except for the Ma­ provisions for withholding on interest eral excellence, the California Newspa­ rines. and dividends included in the Tax per Publisher's Association named the The role of the merchant fleet was Equity and Fiscal Responsibility Act San Jose Mercury the best metropoli­ so significant that General Eisenhow­ of 1982 must be reconsidered tan newspaper in all of California. er characterized the merchant marine and repealed. These awards confirm our opinions as the fourth arm of defense. I opposed this proposal from the and fulfill our wishes. Mr. EDWARDS of The John W. Brown was one of 2, 770 moment it was first announced, and California and I have watched, worked Liberty ships built in series construc­ still do. I voted in favor of an amend­ with and admired the Mercury's out­ tion from a master plan dating from ment to take the 10-percent withhold­ standing staff. We have seen reporters 1879. She was built in 41 days at the ing provision out of the tax bill, but ferret out details, and we have Bethlehem-Fairfield Shipyard in Bal­ unfortunately, the amendment was de­ watched editors research and weigh timore. She saw service in the Mediter­ feated. As a result, the 10-percent arguments. ranean as a troop transport, ferrying withholding passed as part of the tax Some representatives of totalitarian troops to the Anzio beachhead and reform measure, and is scheduled to governments argue that America's free transporting German POW's to North go into effect July 1, 1983. press is worthless, because American Africa. Fortunately, I am not a lone voice in newspapers fail to affect policy. After the war, Liberty ships served the wilderness opposing this provision The San Jose Mercury proves these various functions: Some became naval and working for its repeal. I join over people wrong. auxiliary vessels; many were utilized 120 of my colleagues in the House in Each morning, Congressman ED­ as break-bulk transports by United sponsoring legislation to repeal the 10- WARDS of California and I sift through States and foreign shipping lines; and percent withholding rule. I am advo­ Mercury articles and editorials, and a number were ultimately used in arti­ cating the repeal on behalf of the the Mercury's words about economic ficial reef projects. nearly 10,000 constituents who have policy, health care, crime, defense, In 1945, the John W. Brown became written to me over the last several education, and industry often shape the Nation's first and-to my knowl­ months to express their concerns and our thoughts and focus our energies. edge-only maritime high school. opposition to the law. As a result, our ideas have often come From then until last year she was used I am well aware of the arguments percolating through the pages of the by the New York City Board of Educa­ made in favor of the 10-percent with­ San Jose Mercury. Even when the tion to teach young people the neces­ holding. Further, I am as conscious as Mercury condemns rather than initi­ sary skills to prepare for service at sea. any legislator in Congress of the need ates our ideas, its words affect us be­ The board of education has now de­ to reduce our glaring, and growing, cause the Mercury's criticisms are so cided to cease utilizing the John W. Federal deficit. Yet, I am also con­ regularly logical and succinct. Brown as a training vessel, and she is scious of the methods we use to raise Indeed then, as a valuable entertain­ scheduled to be returned to the Mari­ revenues in our efforts to reduce the er, educator, and critic, the San Jose time Administration. deficit. The ways in which we do this Mercury truly deserves its laurels. Today, I am reintroducing legisla­ say as much about our ability to Mr. Speaker, Congressman EDWARDS tion to transfer the vessel from govern as the amount of deficit reduc­ of California and I have been lucky to MARAD to a nonprofit organization. tion we are able to achieve. enjoy the service of this fine paper, The John W. Brown preservation I do not believe withholding 10-per­ and we want now to thank those who project will transform one of the last cent of earnings from such income have given us California's finest.e remnants of that great Liberty fleet sources as interest, dividends, or pen­ into a merchant marine memorial sions is necessary or fair. This provi­ museum. The project will obtain all of sion was implemented to improve cash A BILL TO ESTABLISH THE its funds from private contributions flow for the ·IRS and to guarantee "JOHN W. BROWN" AS A MER­ and will create a permanent living me­ that all interest income is reported-so CHANT MARINE MEMORIAL morial to those valiant seamen who that the Government does not lose gave their lives so that others might money through taxpayer noncompli­ HON. MARIO BIAGGI live in freedom. ance. OF NEW YORK The establishment of this museum However, studies show that an ex­ IN THE HOUSE OF REPRESENTATIVES will also be a tribute to the workers tremely high percentage of taxpayers who constructed the merchant fleet accurately report interest income. Fur­ Thursday, February 17, 1983 that helped us win the war. These thermore, under this provision, al­ e Mr. BIAGGI. Mr. Speaker, in the workers-though they did not serve on though taxpayers will be permitted to last Congress, I introduced legislation the battlefield-worked long and hard credit the amounts withheld on inter­ which would establish a national mari­ to build the fleet. Many developed as­ est and dividends against present law time memorial aboard the retired bestos-related illnesses. tax liabilities on their tax returns, just February 17, 1983 EXTENSIONS OF REMARKS 2535 as they do for amounts withheld on ways are a "model of accessibility" in munity College District, of Cleveland, wages, they are deprived of that inter­ terms of the economics of higher edu­ gave on H.R. 30 to the Committee on est income during the year to supple­ cation, the cost of which continues to Education and Labor. ment their other income or invest as climb. I would like to share with my col­ they see fit. It is hardly coincidence that they leagues Dr. Ellison's testimony on the Instead, the Government receives also have emerged, in numbers of stu­ needs and role of community colleges the taxpayers' 10-percent sooner, then dents served, as the largest arm of in improving math and science educa­ they would otherwise, and deprives American higher education. Nor is it tion and technician training. I hope the individual of compounded interest coincidence that they are the one arm that Congress can respond positively they would receive on the missing 10- of higher education that has enjoyed a to these suggestions. I certainly will percent. pattern of steady growth in recent work toward that end. While there are certain exemptions years. TEsTDIONY ON H.R. 30, EMERGENCY under the law to protect seniors and There are now more than 5 million MATHEMATICS AND ScIENCE EDUCATION ACT the low-income, I am bothered by the people taking credit courses and asso­ additional layers of bureaucracy, book­ ciate degrees at these institutions. A By Nolen M. Ellison, Chancellor, Cuyahoga largely part-time adult learning popu­ Community College District, Cleveland, keeping, and regulation needed to de­ Ohio. termine who is eligible for these ex­ lation, that might be again that great in number, is using the 2-year colleges Mr. Chairman, it is gratifying to the edu­ emptions. Once again, the "little cation community to see you and this Com­ people" lose. to enrich their careers and lives with­ mittee moving with such dispatch on legisla­ I believe we must repeal this provi­ out wanting course credits. Many of tion that addresses some of the root causes sion of TEFRA-and use commonsense these students, we should add, already of our national crisis in productivity. Hour and compassion instead of political ex­ have a college degree, some even grad­ Nation is to overcome relative and competi· pendiency to reduce the Nation's defi­ uate degrees; now they are using their tive skill slippages that threaten our global cit and restore economic health to the community college to gain or upgrade leadership in technology and industrial pro­ country.e a job skill. duction, then the kinds of initiatives you are Of the 5 million who are pursuing formulating in H.R. 30 must move to the credits and degrees, nearly two-thirds, very top of our national agenda. THE UNIQUE ROLE OF COMMU­ I hope all of us here do agree that these or some 3.2 million, are concentrated slippages constitute a national crisis. Our NITY COLLEGES IN SCIENCE in the occupational courses. And data decllning skill base clearly is a central factor AND MATH EDUCATION from the National Center for Educa­ in the current recession, and if the slippages tional Statistics suggests that at least are not reversed, they could lead to a seri­ HON. DOUG WALGREN 1 million more noncredit students are ous erosion of both our standard of living OF PENNSYLVANIA using the community colleges to fur­ and the traditional American way of life. Of course, to rebuild the skill base, we IN THE HOUSE OF REPRESENTATIVES ther their job skills. There are more than 30,000 cliffer­ must overcome the crippling shortages of Thursday, February 17, 1983 qualified teachers in science and math. ent occupational courses, we are told, These shortages are hurting the community e Mr. WALGREN. Mr. Speaker, as listed now in the catalogs of the com­ colleges, as well as the elementary and sec­ Congress deliberates over legislation munity and technical colleges. If we ondary schools. Dale Parnell, President of to respond to the crisis in science and could examine the roots of a vast the American Association of Community math education at all levels of educa­ number of these offerings, we would and Junior Colleges, has been making a tion, I am concerned that we have per­ discover they are "employer specific" survey to gauge these shortages. The two haps not marshaled as effectively as courses-that is, they are designed and tables that follow show the severity of the we might some of our own special na­ scheduled to serve the defined training problem. Adding together on Table No. 1 those that tional strengths in responding to the needs of a particular employer who, in report either "critical shortages" or "short­ productivity crisis. One of our national many cases, came to the community ages," we see that nearly 90 percent of the strengths in our unique system of college seeking such help. colleges are hurting for computer instruc­ more than 1,000 community and tech­ The pressing needs of the communi­ tors. Of 433 responding schools-roughly nical colleges that have emerged in ty colleges are concentrated in three one-half of the public two-year colleges­ the last decade. areas: technician programs, state-of­ some 77 percent also are hurting for elec­ Community colleges are rooted in the-art equipment, and professional tronics instructors. the local community and often have development for faculty who instruct Shortages run 40 percent or higher in both math and physics-and 30 percent re­ strong ties to the local labor market. the occupational programs. The com­ ported shortages in other "high tech" fields. They are probably the largest source munity colleges themselves have In the breakdown of computer science in­ of advanced skill training, outside in­ spoken graphically to these needs in structor shortages by region, Table No. 2, all dustry. They serve students of all ages the recent testimony which Nolen M. the responding colleges in Region II show they need help.

TABLE !.-INSTRUCTOR SHORTAGES IN COMMUNITY COLLEGES [In percent]

Total response by subject

Critical Surplus shortage

Computer sciences ...... 52 37 8 No response 3 pen:ent. Electronic technology ...... •...... •...... •...... 31 36 . 15 No response 13 pen:enl Not applicable 4 percent. Mathematics ...... ••...... •....•...•...... •...... •...... •.•.••.•.....••...... ••.•...... 7 35 47 No response 8 percent. Earth sciences ...... 1 9 63 No response 18 percent. Not applicable 3 percent. Physics ...... •.....•...... •...•...•...... •.•...••..•••...... •...... •..•...... •...•...... 6 34 44 No response 14 percent. Not applicable 1 percent. Chemistry ...... 3 24 60 No response I 0 percent. Business ...... •...•...... ••...••...... •..•...... •...•...... 3 27 55 No response 9 pen:enl

Norr. -Other-34 percent of the respondents indicated shortages in "other" subjects, Nursing, 28 percent; other allied health fields, 20 percent; high-tech fields; and other, 14 percent. Source: A>tX. 2536 EXTENSIONS OF REMARKS February 17, 1983 TABLE 2.-COMPUTER SCIENCE [In percent]

Response by region Critical shortage Shortage Adequate Sulplus Other

45 45 9 70 30 9 :55 !11 (~::; .ri.fJJi~~:::~~=~~,::. : :::;ii::-7~ i;:~::::::::::::::::::::::::::::::::::::::::::: 54 41 5 Region IV \Alabama, Florida, Georgia, Kentucky, M~ , North Carolina, South Caiolina, Tennessee, 20 percent) 1 •••••...... •.•.•.... 63 29 7 No response 1 percent 51 37 9 No response 4 percent 40 48 10 No response 2 percent 38 47 12 No response 3 percent « « 6 No response 6 percent ii~::;~~~-~·;:~=.::;::: :::~=-~::::::~:::: :: 54 33 11 No response 2 percent Region X (Alaslla, Idaho, Oregon, Washington, 6 percent) 1 .•••.•.•.....•.••.•••••.•...... ••••••.•••••.....•.••.••.•...... •••••.•...••.••.••..••••.•..•••.•.•••...... •••. 33 48 11 No response 7 percent

1 Number of region responses/ total responses. Source: A>CE.

We have learned from Peter Blake, Direc­ fronts, as the accompanying brief on "Put­ met. One prong must be the revitalization tor of the International Robotics Institute, ting America Back to Work" will show. of math and science instruction in the ele­ that his industry alone expects in the next We emphasize that these initiatives spring mentary and secondary schools, as pre­ six or seven years to grow from a $140 mil­ as much from the grassroots as from the As­ scribed by your bill. The second prong lion a year business into an industry gross­ sociations. In the last decade, scores of com­ should be an equally vigorous initiative at ing $2.5 billion annually. He notes that this munity and technical colleges have been the adult level, focused on the demand side means a tremendous displacement of work­ reaching out to local industry to develop of the employment market, by which we can ers and heavy retraining for Jobs, nearly all and staff what we call "employer specific" turn out the technicians that industry must of which will require a math base and tech­ courses. Such courses provide training tai­ have to meet global competition. Our point nical skills but not a bachelor's degree. He lored to each company's defined skill needs. about demand is this: Up to now, the Feder­ also reports critical shortages of instructors The Business-Industry Community Col­ al programs have been largely oriented in programs feeding those job needs. lege Coalition, led by ACCT, has been work­ toward the supply side, toward recycling the What our Nation needs today more than ing closely with the White House and the anything else, in our Judgment, is a "moon President's Task Force on Private Sector needy and the unskilled into training for so­ shot" commitment to the development of its Initiatives to make community colleges still called "entry level" Jobs that in many cases human capital. more proactive in responding to the private prove not to exist. The Choate monograph Looking back on the boost that Congress sector and to the skill needs of industry, makes the point graphically in these passag­ gave the sciences in the wake of Sputnik, it labor and government alike. Colleges are en­ es: seems a terrible irony that now, barely a couraged by BICCC to establish local Busi­ ". . . the first step is to ensure that almost generation later, secondary schools in ness-Industry Councils, to ensure them­ all the money goes directly into training ac­ almost every State are searching in vain for selves of continuing guidance from the pri­ tivities. The second step is to ensure that teachers qualified to give their science and vate sector. the training offered relates to the specific math courses. Though that boost undoubt­ In sheer numbers of learners served, the needs of specific employers.'' edly has been responsible for keeping the community colleges have in the last decade He goes on: United States in the forefront of technologi­ become the largest branch of American "The basic responsibility . . . must reside cal and scientific discovery, we now need ini­ higher education. Of the more than five with employers, who know best their own tiatives that will mobilize our larger skill million learners enrolled in the credit and training needs and most often are best pre­ base. degree programs at two-year colleges, pared to provide them." In the community colleges, we look at this almost two-thirds, or well over three mil­ Representative Miller's bill of the last crisis with the same sense of urgency and lion, are taking technical and occupational Congress, H.R. 5820, addressed the chal­ gravity that TRW economist Pat Choate as­ courses. Although it is harder to gauge the lenge from the demand side, and the Asso­ cribes to it in his penetrating monograph, non-credit population, the number of adults ciation of Community College Trustees pro­ "Retooling the American Work Force: taking community college courses without vided written comments to your California Toward a National Training Strategy," in credit could be equally great. hearings supporting his concept. If industry which he observes: In some states, like Washington, the com­ is given incentives to offer the first piece of "The speed and force of . . . change will munity colleges have more students holding the training dollar, then taxpayers will have be awesome .. . . Consequently, million of bachelor's, master's or even doctor's degrees stronger assurances that displaced workers Jobs and workers will become obsolete . . . . who are learning a Job skill than are en­ and the unemployed are being trained for In this decade virtually all of the nation's rolled in any graduate school program in real jobs. workers, most of whom are now employed, the State. An analysis of the community In your December mark-up of H.R. 7130, will need to be retrained or have their skills college program data collected by the Na­ Mr. Chairman, you voiced alarm that the sharpened." tional Center for Educational Statistics sug­ National Science Foundation was not re­ We hope every Member of Congress will gests that the total population pursuing vo­ read the Choate monograph. cational courses in the two-year colleges ex­ sponsive to initiatives in community colleges The Association of Community College ceeds 4.2 million. and smaller universities, and that it had Trustees and the American Association of A commitment to human capital and skill done little to advance the development of Community and Junior Colleges have in the development on the scale we are talking technician training. We echo that concern. past 18 months launched several initiatives about ought to take the form, we believe, of NSF can and should do much more to aimed at bolstering American productivity, broad national policy by which the current­ expand the nation's technician skill base. and at encouraging more sharply focused ly fragmented federal programs that foster Just as the United States' competitive ad­ national policy. ACCT and AACJC last July employment and skill development, includ­ vantages in industry have dwindled away closed ranks in the policy arena by forming ing the Vocational Education Act, can be over time because of neglect of the skill their Joint Commission on Federal Rela­ more effectively focused on the Nation's base, any edge we may still enjoy in techno­ tions, chaired by Judith Madonia, who also critical-skill needs. logical and scientific discovery also will be is Chairman of the Board of Lincoln Land Governor Pierre S. DuPont IV of Dela­ lost over time, unless we rebuild that skill Community College in Springfield, Illinois. ware put the challenge aptly last week at base. The foremost need in legislation, in the view the National Press Club, when he said: " ... In revitalizing the science and math pro­ of this Commission, for which I am privi­ a comprehensive national employment grams at every level of education, the com­ leged to testify here, lies in focusing federal policy must reach the same level of priority munity colleges already are a strong part­ initiatives to form a cohesive national policy in the eyes of government as national de­ ner, and a natural partner. Vast amounts of on comprehensive human resource develop­ fense ..." applied math and applied science are being ment. Mr. Chairman, your bill, H.R. 30, points us generously imparted to millions of adult The two Associations also are working to­ in the direction of building such a policy­ students through the technician courses gether to promote public-private partner­ toward building the two-pronged program that range from the health sciences to man­ ships. In fact, we are doing it on several by which the crisis in productivity can be agement systems. February 17, 1983 EXTENSIONS OF REMARKS 2537 These facts surely contributed to General teaching careers in math and science is most 29, 1981. Sentence: 4 years ordinary + 4 Motors' decision to disperse its technician commendable. years exile. training into a community college network The more pressing needs of community Popov, Nikolai Filippovich. that eventually will span more than 60 col­ colleges are concentrated largely in two Home address: Nadezhda Sergeyevna leges scattered throughout the country and areas-equipment and professional develop­ Popova , ul. Zarechnaya, 15 kv. 1, g. to the partnerships on training which the ment. And these are not mutually exclusive Ryazan 391010, Ryazanskaya obi. Soviet United Auto Workers and the major auto needs. The colleges that are heavily pro­ Union; b. March 27, 1927; 9 children. makers are building with community col­ grammed toward "high tech" fields almost Camp address: UP 288/15-83, g. Norilsk, leges. A National Center for this program is all have dire needs for state-of-the-art 663301, Krasnoyarsky krai, Soviet Union. now being erected on the Henry Ford Com­ equipment in some or all of their tech and Arrested: July 20, 1979. Sentence: <2nd> 3 munity College campus. These are not iso­ science courses. They also need assistance in years strict. lated initiatives. They are prime examples professional development which would help Popov, Oleg Nikolayevich. of the working partnerships that the com­ them two ways-encourage their instructors Home address: Tatyana Vladimirovna munity and technical colleges are building in math, science and tech fields to stay with Popova , ul. Biryuzova-8 kv. 140, g. with the industries they serve. Such initia­ their teaching careers, and at the same time Ryazan 390039, Ryazanskaya oblast, Soviet tives are spurs to math and science educa­ provide honing for their skills on state-of­ Union; b. April 2, 1954; 4 children. tion both directly and indirectly. the-art equipment by working in industry. Arrested: December 8, 1981. Sentence: 3 Community colleges have been moving Thus, we also applaud your program of­ years ordinary. ahead on their own, as a matter of necessi­ fering matching grants to help colleges ac­ Pozdnyakov, Nikolai Petrovich. ty, to beef up their math and science pro­ quire state-of-the-art equipment. We urge Home address: Aleksandr& Nikolayevna grams. As they respond to exploding tech­ that you consider funding this program at Pozdnyakova . ul. Shosseinaya, 8-45, g. nology and open more and more technician $200 million. Moskva 109548, Soviet Union; b. April 6, courses, they find it imperative to offer It is also our earnest hope, Mr. Chairman, 1933. better and better math and science instruc­ that you and this Committee can work with Camp address: p/ya 94/4 otr. 12, pos. Vy­ tion. the Ways and Means Committee to legislate drino, Kabansky raion, Buryatskaya ASSR Many face a demand for computer train­ tax benefits to industry that would encour­ 671111, Soviet Union. Arrested: August 6, ing that they cannot always serve. In com­ age companies to help education on three 1981. Sentence: 2.5 years ordinary. puter science and in many other new tech­ fronts: Prokopchuk, Nikolai Anisimovich. nologies, the community colleges use ad­ 1. Expanding their gifts of state-of-the-art Home address: Galina Grigorievna Pro­ junct instructors from industry to give equipment for use in occupational pro­ kopchuk . ul. Dekabristov 50 kv. 2, g. courses. grams. Lutsk, Volynskaya oblast 263020, Soviet Rend Lake College in Ina, Illinois, for ex­ 2. Allowing professional personnel re­ Union; b. March 23, 1938; 5 children. ample, has registered 30 percent increases in leased time, on a systematic basis, to serve Camp address: uchr. MKh 324/78 12-123, science and math courses in Just the last as adjunct faculty in math, science and s. Raikovtsy, Kmelnitskaya oblast 281428, two years. Harry Bruan, President of Rend "high tech" courses. Soviet Union. Arrested: December 29, 1981. Lake College, offers these observations: 3. Providing summer or off-term employ­ Sentence: 2.5 years ordinary. "These increases have been attributed to ment for math, science and "high tech" in· Protsenko, Vladimir Antonovich. several reasons including the requirement structors, so that they stay with their teach­ Home address: Elvira Fominichna Pro­ for students planning to transfer to four­ ing careers while they also stay versed in tsenko , Leningradskaya shosse, 30 year institutions being computer literate, the state-of-the-art through such employ­ "A", pos. Kuzmolova, g. Leningrad 188663, the increased general interest in computer science, science and math, and the need for ment. Soviet Union; b. March 16, 1928; 6 children. math and computer literacy in vocational­ If you wish further comment on H.R. 30, Arrested: December 8, 1981. Sentence: 3 technical programs. we would gladly respond. We thank you years ordinary + confiscation. "The college has been requested and has again for this opportunity.e Prutyanu, Mikhail Antonovich. provided computer education for area ele­ Home address: Ruta Stepanova Prutyanu mentary and secondary teachers. In addi­ , II Odessky per., 4 kv. l, g. Kishinev tion we will soon be involved in training 100 MORE CONCERN NEEDED FOR 277047, Moldavskaya SSR, Soviet Union; b. teacher aides for special education. Many of CHRISTIANS IN PRISON· FOR December 26, 1948; 1 child. the specialized techniques in this training BELIEFS IN U.S.S.R. Camp address: p/ya UZh 15/15 "Ts", g. will involve computer related instruction." Mogilev, 213105 Belorusskaya SSR, Soviet As President Braun illustrates, community Union. Arrested: October 31, 1979. Sentence: colleges are reaching out to their local HON. LARRY McDONALD 5 years ordinary. school districts to provide assistance in im­ OF GEORGIA Prutyanu, Khariton Antonovich. Home address: Natalya Prutyanu , ul. Ufimskaya 113, g. Da­ of the Physical Science faculty spend one is vlekanovo, Bashkirskaya ASSR 452120, ous record of violations so long and Soviet Union; b. November 15, 1935; 10 chil· afternoon per week at local high schools to so blatant, no report is needed. This is counsel students about science programs. especially true of the world's worst vi­ dren. And the Kem faculty also help to instruct Arrested: December 17, 1981. the advanced math classes in at least two olator of human rights-the Soviet Pushkov, Yevgeny Nikiforovich. high schools. To give the Committee a sense Union. A major category of people Home address: Lubov Pavlovna Pushkova of lengths to which community colleges are whose elementary rights are routinely , ul. Krasnaya, 3, g. Khartsyzsk, Do­ extending themselves to help meet this violated are those who attempt to netskaya oblast 343770, Soviet Union; b. challenge, I would like to offer for the practice their religion in the U .S.S.R. March 16, 1941; 7 children. record a letter from the Chairman of the A further list of such people serving Camp address: YuYe 312/2-1 "A"-10, g. Physical Science Department at Bakers­ Dzerzhinsk-2, Donetskaya oblast 343550, prison terms in the Gulag is enumer­ Soviet Union. Arrested: May l, 1981. Sen­ field, Dr. Robert Allison, detailing the varie­ ated for the edification of my col­ ty of their initiatives. tence: 3 years ordinary. North Carolina is at the point where 21 leagues: Razumovsky, Aleksandr Yevgenievich. percent of the high school diplomas, or Polishchuk, Nikolai Petrovich. Home address: Taisa Aleksandrovna Razu­ their equivalent, are being awarded through Home address: Valentina Kirillovna Po­ movskaya . ul. Chapayeva 15, Besh­ the State's community and technical col­ lishchuk . ul. Pochtovaya, 84, g. Kishinev, man, Magdanskaya oblast 681310, Soviet 1981. Sentence: 2.5 years ordinary. Moldavskaya SSR 277031, Soviet Union; b. Union. Arrested: April 15, 1981. Sentence: 5 Sheshenko, Vasily Makarovich. July 20, 1952. years ordinary + confiscation. Home address: Ekaterina Trofimovna She­ Camp address: p/ya "G", g. Kishiniev Rubienko, Anatoly Timofeyevich. shenko . ul. Shefskaya, 34, g. Nikolayev March 7, 1924. Tevs, Maria Petrovna. 327037, Soviet Union; November 25, 1949; 3 Camp address: UL 314/23 otr. 9, pos. Cher­ Home address: Ekaterina Isakovna Tevs children. nukhino, g. Debaltseva, Voroshilovgrads­ . s. Apollonovka, Isllkulsky raion, Arrested: February 3, 1982. Sentence: 6 kaya oblast, Soviet Union. Arrested: Janu­ Omskaya oblast 646013, Soviet Union; b. years strict + 3 years exile. ary 11, 1981. Sentence: 3 years strict. May 30, 1953. Rumachik, Pyotr Vasllievich. Shevyakov, Ivan Ivanovich. Camp address: p/ya YaV 48/5 otr. 5, g. Home address: Lubov Vasllievna Ruma­ Home address: Vera Ivanovna Shevyakova Chelyabinsk 454014, Soviet Union. Arrested: chik . ul. Bolnichnaya 76, pos. chinsk 673420, Chitinskaya oblast, Soviet Shkarovsky, Anatoly Sergeyevich. Strasheny, Moldavskaya SSR, Soviet Union; Union. Arrested: August 15, 1980. Sentence: Home address: Vera Pantileyevna Shkar­ b. December 2, 1961. <5th> 5 years strict. ovskaya , Kievskaya shosse, 54 kv. Camp address: OR 318/76 otr. 9, st. Rafa­ Rymar, Vladimir Ulyanovich. 193, g. Poltava, 314021, Soviet Union; b. Oc­ lovka, Rovenskaya oblast 265968, Soviet Home address: Pelageya Vasllievna Rymar tober 15, 1955. Union. Sentence: 3 years ordinary. . ul. Pushkina, 12, g. Khotin, Chemo­ Settlement address: "Nariz", pos. Olk­ Tsapko, Vitaly Dmitrievich. vitskaya oblast, Soviet Union; b. August 8, hovka, Permskaya oblast 618607, Soviet Home address: Olga Stepanovna Tsapko, 1936. Union. Arrested: August 24, 1980. Sentence: Romny, Sumskaya oblast, Shkarovsky,PavelSergeyevich. 1982. Soviet Union. Arrested: end of 1980. Sen­ Home address: Tatyana Ivanovna Shkar­ Arrested: May 13, 1982. Sentence: 2.5 tence: 2.5 years ordinary. ovskaya . per. Deputatsky, 5, g. Pol­ years ordinary. Rusnak, Nikolai Petrovich. tava, Poltavskaya oblast 314032, Soviet Tsera, Ivan Dmitriyevich. Home address: Evdokia Matveyevna Union; b. September 7, 1953; 2 children. Home address: Anna Mikhallovna Tsera Rusnak , ul. Grinchenko 171, g. Dne­ 1980. Sentence: 2 years ordinary. 3 binina (wife), ul. Bumashevskaya, 42 kv. 87, years ordinary. years strict. g. Izhevsk, Udmurtskaya ASSR, Soviet Tverdy, Mikhail Sergeyevich. Rytikov, Vladimir Pavlevich. Union; b. February 23, 1921. Home address: Nina Georgievna Tverdy Home address: Galina Yurievna Rytikova Camp address: p/ya UKh 16/3 "B", g. . ul. Podgomaya, 30, g. Krasnodon, Omsk 644042, Soviet Union. Arrested: June ganskaya oblast 641230, Soviet Union; b. Voroshilovgradskaya obi. 349340, Soviet l, 1981. 1939; 6 children. Union; b. September 1, 1959. Sidorova, Andezhda Pantileyevna. Camp address: uchr. IZ 43/l Kh.O., g. Camp address: ul. Lytkina 66 Kh/0, g. Home address: Yelizaveta Alekseyevna Si­ Kurgan-8, Kurganskaya oblast 640008, Tulun, Irkutskaya obi. 665210, Soviet Union. dorova , ul Transportnaya, 33 kv. Soviet Union. Arrested: March 22, 1982. Sen­ Arrested: August 23, 1979. Sentence: 3 years 64, g. Novokuznetsk-35, Kemerovskaya obi. tence: 1 year ordinary. ordinary. 654035, Soviet Union; b. July 23, 1951. Ursul, Pyotr Vasllievich. Ryzhuk, Vasili Fedoseyevich. Camp address: UO 68/3 br. 18, g. Ust La­ Home address: Galina Dmitrievna Ursula Home address: Ludmlla Ivanovna Ryzhuk binsk, Krasnodarsky krai 352310, Soviet , ul. Transportnaya, 33 kv. Rovenskaya oblast 265968, Soviet Union. Ar­ vod SK-1, g. Belorechensk, Krasnodarsky 64, g. Novokuznetsk-35, Kemerovskaya obi. rested: January 16, 1981. Sentence: 2.5 years krai 352604, Soviet Union. Arrested: April 6, 654035, Soviet Union; b. November 12, 1948. ordinary. 1980. Sentence: <4th> 3 years strict. Camp address: UO 68/3 br. 8, g. Ust La­ Usoltseva, Nina Anotnovna. Saveleva, Valentina Ivanovna. binsk, Krasnodarsky krai 352310, Soviet Home address: Olga Petrovna Usoltseva Home address: Yulia Pavlevna Saveleva Union. Arrested: June 18, 1980. . ul. Burovoi, 24, g. Budennovsk, Skomyakov, Yakov Grigoriyevich. Chelyabinskaya obi. 454085, Soviet Union; b. Stavropolsky krai, Soviet Union; b. Decem­ Home address: Nina Stepanovna Skomya­ March 14, 1956. ber 4, 1954. kova . ul. Pashkovskogo, 52, kv. 3, g. Camp address: uchr. ZhD 158/4 "Zh", g. Varaksa, Nikolai Denisovich. Zhadanov, Donetskaya oblast, Soviet Union; Dzhambul 484049, Soviet Union. Arrested: Home address: ul. Arkhangelskaya, 3, g. b. April 23, 1958. July 4, 1978. Sentence: <2nd> 5 years strict. Rostov-na-Donu, Rostovskaya obl. 344074, Camp address: p/ya YuK-25/4 "Ye" g. Sysoyev, Konstantin Aleksandrovich. Soviet Union; b. December 12, 1955. Orenburg 460053, Soviet Union. Arrested: Home address: Nadezhda Ivanovna Sy­ Arrested: March 19, 1982. Sentence: 2.5 August 16, 1979. Sentence: 3 years ordinary. soyeva . ul. Kotovskogo, 41, g. Kirovo­ years ordinary. Seifert, Yuri Ottovich. grad 316013, Soviet Union; b. March 5, 1954. Varavin, Vitaly Fedorovich. Home address: Ekaterina Seifert , Pridopozhanya alleya, 1/153 kv. kaya obl. 474010, Soviet Union; b. May 20, oblast 258323, Soviet Union. Arrested: July 294, g. Leningrad, Soviet Union; b. march 16, 1947; 3 children. 29, 1981. Sentence: 1 year ordinary. 1959; 3 children. February 17, 1983 EXTENSIONS OF REMARKS 2539 Arrested: February 19, 1982. Sentence: 4 Camp address: p/ya 385/14, st. Potma, been the failure implied by the Administra­ years intensified. Mordovskaya ASSR, Soviet Union. Arrested: tion; many women have benefited from Vilchinskaya, Galina Vladimirovna. September 30, 1981. Sentence: 1.5 years or­ WIN participation. AFDC recipients could Home address: Zinaida Yakovlevna Vil­ dinary. be served instead in programs developed chinskaya . ul. Laxo, 20, g. Brest, Zhurba, Grigory Mikhailovich. under the Job Training Partnership Act if Byelorussia 224007, Soviet Union; b. August Home address: Ekaterina Fedorovna local service delivery areas do, in fact, 4, 1958. Zhurba . the Legal Serv­ Arrested: February 3, 1982. Sentence: 4 HON. GERALDINE A. FERRARO ices Corporation eStimated that only about years ordinary 2 years exile. 15 to 20 percent of the legal needs of Ameri­ + OF NEW YORK Volkov, Nikolai Ilich. ca's poor were being met. Since then, the Home address: Valentina Stepanovna Vol­ IN THE HOUSE OF REPRESENTATIVES number of legal services lawyers has report­ kova , ul. Menzhinskogo, 41 kv. 1, g. Novor­ grant does provide the authority, the Ad­ ossiisk, Krasnodarsky krai 353906, Soviet These cuts, and their effect, are laid ministration would reduce FY84 outlays for Union; b. January 24, 1957; 2 children. out clearly in the budget analysis of this block grant in both current dollars Camp address: UO 68/19 br. 113, pos. Per­ the Women's Research and Education <-2.8 percent> and '83 dollars <-7.4 per­ vomaisky, Kurganinsky raion, Kras­ Institute. Here is that analysis: cent>. It is hard to see how the states could noyarsky krai 352415, Soviet Union. Arrest­ EMPLOYKENT AND TRAINING provide legal services with block grant funds ed: June 18, 1980. Sentence: 3 years ordi­ Job Training Partnership Act .­ unless they made substantial cuts in other nary. Despite extremely high unemployment needed services for poor people. chel 6 years strict. problem, coupled with the reductions in OPERATING SUBSIDIES FOR KASS TRANSIT Wiebe, Genrikh Aaronivich. funds for the relevant programs, may jeop­ The Administration proposes to eliminate Home address: Lydia Nikolayevna Wiebe ardize the progress that women had made federal subsidies for mass transit operating Senior community service employment than men do on public transportation. For vanovka, Almedinsky raion, Kirghiziya example, women in general are far more 722179, Soviet Union. Arrested: June 3, program .-In previous years, the Administration has proposed eliminating likely than men to use public transit to get 1980. Sentence: 3 years ordinary. to work; women who head families are more Yatsyuk, Vasili Ivanovich. this program that provides part-time em­ Home address: Galina Milentyevna Yat­ ployment to nearly 58,000 economically dis­ than twice as likely as all workers to com­ syuk . ul. Suzdal 'skaya, 64 "a", g. delays in other programs are approved, ably"-on the average, by about 90 percent Gorky, Gorkovskaya obi. 603058, Soviet could well result in a significant reduction over 1981's average fares. Three systems Union: b. October 20, 1938. in the number of elderly who are provided were virtually certain that they would have Camp address: USh 349/9, g. Kamishlov, with employment opportunities. to go out of business altogether. Sverdlovskaya obi. 623538, Soviet Union. Ar­ Work incentive program .-WIN, a The impact of these developments on the rested: January 19, 1980. Sentence: 3 years program designed to assist welfare recipi­ ents in securing employment would be abolished by the Ad­ Home address: Anastasia Yakovlevna Zait­ ministration. Three-fourths of the partici­ Poor and near-poor elderly women, who sub­ seva of the poorest households in assisted None ...... $167 $2,004 In 1980, President Carter established housing. 1 bedroom ...... •...... •.•...... •..•..• 218 2,516 2 bedrooms ...... •...... •...... •...... 257 3,084 an lnteragency Task Force on Spinal The median income of female-headed 3 bedrooms ...... ••...... 285 3,420 families in assisted housing is 56 percent of Cord Injury to coordinate the efforts the median income of other families in as­ of Federal agencies and to stimulate sisted housing. Women living alone have the Moreover, children are prohibited or re­ the development of new initiatives in lowest income of all householders in assist­ stricted in many rental buildings. About v. this area. Despite compelling need, the ed housing. of all rental units are in buildings that bar Reagan administration has not contin­ Women are the majority of elderly house­ children; another Ya are in buildings that ued this committee. My bill would holders in assisted housing. place limitations on the number and/or ages insure the continuation of this com­ 82 percent of elderly householders in of children, or on where families with chil­ public housing live alone. dren can live. mittee by mandating it by law. 80 percent of all elderly people living Sources.-U.S. Bureau of the Census re­ I hope that this bill will help us alone are women. ports published in 1980 and 1981; National focus on exactly what Federal and 71 percent of the elderly poor are women. Low Income Housing Coalition; United other resources are being devoted to Women are estimated to head three­ States Conference of Mayors; and U.S. De­ the varied aspects of spinal cord fourths of all eligible households waiting for partment of Housing and Urban Develop­ injury-health, education. training, ac­ public housing vacancies or unable to find ment. For detailed sources, contact WREI at suitable units in rent-subsidized housing. c202> 546-1090.e cessibility, housing, rehabilitation. Nationwide as many as 900,000 households The text of the bill follows: may be on waiting lists for vacancies in ACCELERATING FEDERAL RE­ H.R.52 public housing alone. Be it enacted by the Senate and House of Private-sector rental housing for low­ SEARCH IN SPINAL CORD INJURY AND PARALYSIS Representatives of the United States of income households is in very short supply. America in Congress assembled, That sec­ There are more than 9 million renter tion 431 of the Public Health Service Act households with incomes of less than $7,000; HON. DOUG WALGREN 60 percent of these households are headed C42 U.S.C. 289a> is amended by ad.ding at the by women. OF PENNSYLVANIA end the following: IN THE HOUSE OF REPRESENTATIVES "Cc>Cl> The Secretary shall establish in Using the traditional standard of 25 per­ the National Institute of Neurological and cent of income as an appropriate level of Thursday, February 17, 1983 rent, 1 these households should pay no more Communicative Disorders and Stroke an than $146 per month. • .Mr. WALGREN. Mr. Speaker. today Interagency Committee on Spinal Cord There are fewer than 41/a million units I am introducing a bill that I hope will Injury to plan, develop, coordinate, and im­ renting for less than $150 per month. encourage the National Institutes of plement comprehensive Federal initiatives In a survey of 100 cities by the U.S. Con­ Health to accelerate its research into in research on spinal cord regeneration. ference of Mayors, "city after city noted cures for spinal cord injury and paral­ "C2> The Committee shall consist of indi­ that vacancy rates are below 3 percent, in viduals from the- ysis. "CA> National Institute of Neurological many cases hovering between 1 and 2 per­ My bill would create an interagency cent." The vacancy rate in Los Angeles was and Communicative Disorders and Stroke, reported by the New York Ti.mes to be less committee on spinal cord injury to "CB> Department of Defense, than 1 percent, and "even worse in low­ plan and coordinate Federal research "CC> Department of Education, income areas." on spinal regeneration and would ear­ "CD> Veterans' Administration, Households headed by women are at a dis­ mark $16 million to $20 million for "CE> Office of the Science Advisor to the advantage in the competition for affordable 1983 to 1985 for research. President, and rental housing. Last year, an amendment similar to "CF> National Science Foundation, The median income of women household­ this bill was incorporated into the NIH selected by the heads of such entities. ers who rent is much lower than that of reauthorization bill, H.R. 6457. which "C3> The Committee shall meet at least other renter households. was approved by the House, but not four times a year. The Secretary shall desig­ Women householders typically pay a nate the Chairman from the representatives much higher percentage of their income for acted on by the Senate. of the Committee selected under paragraph rent than other renter households. Elderly Over 500,000 Americans are now par­ C2>. The Secretary shall make such designa­ women pay the highest percentage of all. alyzed because of spinal cord injuries; tions so that a representative from each 7 ,000 came home from Vietnam in agency referred to in paragraph C2> will wheelchairs. We must all be ever serve as Chairman of the Committee. The Chairman shall serve for a term of one year. Renter households Median Annualized =~ mindful that we are all temporarily income mecian rent in rent able bodied-it can happen to anyone. "C4> Not later than 120 days after the end any time, from incidences like an auto­ of each fiscal year the Committee shall Married couple families ...... $14,000 $3,216 21.58 mobile accident or a fall in the home. report to Congress on its activities in the Two or more person households fiscal year. The report shall include a de­ headed by men ...... •...... ll,500 3,444 29.94 Many of the injured are young men Men living alone ...... •...... 10,500 2,484 23.65 scription of research projects on spinal cord Two or more person households who get hurt from sports accidents. regeneration conducted or supported by 7,600 2,880 37.89 Spinal cord injury and paralysis Federal agencies in the fiscal year for which 6,700 2,544 37.97 5,100 2,004 39.29 have profound personal and financial the report is made, the nature and purpose ==:Za~i : ~::::::::::::::::: consequences for an individual and his of each such project, the amounts expended or her family. The estimated total cost for each such project, and an identification Renter families headed by women are to individuals and to the Government of the entity which conducted the research more likely to include children; 80 percent ranges from $3 to $6 billion a year. under each such project. include one or more children under 18, com­ "C5> The Committee shall terminate Sep­ pared with 55 percent of married couple Several years ago, the Council of State tember 30, 1986. renter families; 47 percent include two or Administrators of Vocational Rehabili­ "C6) There is authorized to be appropri­ tation testified on the cost: ated $16,000,000 for fiscal year 1984, 1 Important: Please note that throughout this Medical, rehabilitation and related costs $18,000,000 for fiscal year 1985, and fact sheet, "rent" refers to "gross rent" as defined for one severe case can exceed $60,000. Lost $20,000,000 for fiscal year 1986 for basic and by the Annual Housing Survey; that is, lt includes earnings during the rehabilitative process clinical research by the National Institute the cost of utllltles and fuel. varies, but $25,000 is a reasonable amount. of Neurological and Communicative Disor- February 17, 1983 EXTENSIONS OF REMARKS 2541 ders and Stroke in the area of spinal cord Marsolais explained that a paralyzed Much of what they have learned has been regeneration.". person, walking with shoes on, for example, applied by others, including Marsolais and TECHNOLOGICAL ADVANCES OFFER HOPE cannot feel a blister, a sprained ankle or a Petrofsky. But most scientists agree that re­ strained muscle. Bones can be broken and searchers in Ljubljana, Yugoslavia, have One relatively new, emerging aspect joints damaged from the strong contrac­ made the greatest progress toward practical of rehabilitation for spinal cord in­ tions of muscles as the person stands and application of the research. jured people is the use of computers takes steps. Several scientists have seen videotapes of and other technology to help injured These problems and others have eluded paraplegics standing and walking in Yugo­ and paralyzed people be more mobile. solution in the last 20 years, even as scien­ slavia. Dr. James B. Reswick, a former A November 7 "60 Minutes" program tists have made great progress at helping Cleveland resident, has personally seen featured a Wright University project paralyzed people move. their work, as recently as last summer. Progress hasn't been fast enough for the "They now have an Austrian patient, in which a computer supplied electri­ Spinal Cord Society in l!,ergus Falls, Minn., about 21 or 22, who is able to walk using cal signals directing the person's mus­ which has funded most of Petrofsky's work canes," said Reswick, now senior scientist at cles to move. in the past year. The group says it seeks the National Institute of Handicapped Re­ I am pleased to share with my col­ cure of spinal cord injuries, not merely care search in the U.S. Department of Educa­ leagues an article from the November of patients. tion, Washington, D.C. 21, 1982, Cleveland Plain Dealer that Dr. Charles Carson, a scientist who is The man wears a microcomputer strapped president of the society, said it has given Pe­ to his waist, and wires and electrodes run discusses some recent advances in this trofsky more than $90,000 in the last six area, activities that I would hope the down his legs, attached to his skin, Reswick months, and will give him more. said. The patient can control his movements Federal Government could in some "Petrofsky's contribution is not something with the microcomputer. way encourage and support. brand-new, but he is pushing it to its limits Reswick said he is ambivalent about the The article follows: very rapidly," said Carson, who helped start publicity given Petrofsky's work. He said he the society in 1978. "We have never funded THE HARD JOB OF WALKING fears false hopes will be raised, but noted anyone else because we have never found that "to get national attention to this area how to At Cleveland Veterans Hospital's gait lab, that promises results "30 years down the stimulate paraplegics' muscles. Khawam's doctor and the biomedical engi­ road. That's almost as bad as wheelchair In basketball. We want to fund those projects March, the first paraplegic stood and neers working with him see Khawam's abili­ with a near-term human application," he took a few steps, according to Dr. Robert ty to stand and move forward as another said. Jaeger of the Pritzker Institute of Medical building block in research they have been Carson said Petrofsky's funding and the Engineering at IIT. Now, two can stand and engaged in for years with Case Western Re­ national publicity he has gotten have made take "primitive steps on the parallel bars,'' serve University's School of Medicine. other scientists jealous and more competi­ he said. Three others can stand. The Cleveland team has not sought pub­ tive. Jaeger added that in the last three licity outside scientific circles about its work His group, he said, is "like the Commu­ months, an intense psychological program with paraplegics. By contrast, Dr. Jerold Pe­ nists, I suppose. We've taken a crafty look has been begun at IIT to try to get truly in­ trofsky, a biomedical engineer and physiolo­ at these guys, to stimulate competition formed consent from patients involved in gist at Wright State University in Dayton, among them ... These poor guys. They sit the research. invited the media to a Nov. 11 press confer­ in their labs, and no one is interested in "How do you invite them to take part in ence in his lab to witness the steps of one of them . . . After a while it gets to be pretty the research so that their hopes aren't built his paralyzed patients, Nan Davis, 22, of St. discouraging. We've kind of broken through up? . . . These people stop listening when Marys, 0. this with Petrofsky." you say this is experimental, and they think Both Petrofsky and the Cleveland re­ Petrofsky was at a scientific meeting in they are going to walk out of the lab. It's a searchers were using a computer, stimulator London last week. At his press conference, big problem,'' Jaeger said. and electrodes to send electrical impulses di­ he gave credit to scientists in Cleveland, One roadblock to practical use of electri­ rectly to their patients' paralyzed muscles, Chicago and Yugoslavia for important re­ cal stimulation is lack of reliable equipment, taking over the normal function of their search. He said he does believe his "closed­ Jaeger pointed out. brains and nervous systems. When the loop" technique-in which the computer "It's very important that a reliable way spinal cord is injured, the brain and the part both gives stimulation to and receives infor­ . and what we did was gross movement. a conservative estimate. I think it's really muscles and nerves below his spinal cord All that proves is that you can make those possible. The fact that so many labs have injury cannot communicate with his brain? muscles work." been able to (get paraplegics to stand and Paraplegics cannot keep from falling when How can electrical stimulation best be take steps) means that it's possible." standing or moving; like Khawam, they used to make paralyzed muscles work again? Researchers at Rancho Los Amigos Reha­ must hold onto a walker for stability. Scientists at the Applied Neural Control bilitation Engineering Center in Downey, Another major unanswered question is: Laboratory of the department of biomedical Calif., have been doing work similar to Pe­ What kind of damage, if any, is being done engineering at CWRU's medical school have trofsky's for a half-dozen years or so, said to the skin, joints and bones when electrical been studying that question for some 20 Dr. Bruce BoWinan, director of neuromuscu­ impulses make muscles move? years. lar engineering. He noted that equipment to 2542 EXTENSIONS OF REMARKS February 17, 1983 stimulate muscles must be as inconspicuous was a 14.3-percent increase over the 1984, let us remember how much his as possible. year before and a 25-percent increase past budget mistakes have cost us. "You may find one (paraplegic) in a blue over 1980. The national debt has in­ And how much they are still costing moon who will wear that hardware Just to walk," Bowman said. " it will creased by $232. 7 billion since this ad­ us.• end up in the closet." ministration took office. He credits Petrofsky with developing a And of course, the cost of maintain­ stationary bicycle and a tricycle that can be ing that debt-the interest payment­ DISABILITY INSURANCE powered by paralyzed muscles and used for has also increased dramatically. In AMENDMENTS OF 1983 exercise. 1982, the Federal Government paid Marsolais and others envision standing $84. 7 billion in interest. The interest HON. BARNEY FRANK and walking by electrical stimulation of figure was $52.6 billion in 1980. Thus, OP' MASSACHUSETTS muscles as a supplement to wheelchair transportation. Petrofsky and Carson of the 1982's total represents a 61-percent in­ IN THE HOUSE OF REPRESENTATIVES Spinal Cord Society see it as a replacement, crease in just 2 years. It was also the Thursday, February 17, 1983 and claim paraplegics will one day put aside third-largest single item in the budget. their wheelchairs. The only things that the U.S. Govern­ • Mr. FRANK. Mr. Speaker, today I Carson believes Petrofsky's work will be ment spent more money on in 1982 am reintroducing in slightly revised practical and applicable within five years, were defense and the social security form the disability amendments of and is a step in the direction of a cure. The programs. 1983 legislation which will make much ultimate goal is to bypass the injury to the The $84. 7 billion the Government needed changes in the review of social spinal cord by using a computer to pick up security disability insurance cases. signals from the brain and carry them to spent in interest in 1982 is more than the paralyzed muscles, Carson said. it spent in that same year on energy, Since Congress mandated in 1980 "He said, and I'm sure be international affairs, agriculture, com­ that all SSDI cases be reviewed every means it, that the next step is to use the munity and regional development, 3 years, then number of such reviews brain to program that baby ,'' said Carson. "Unless someone gets off combined. It is also 14.5 percent more Reagan administration decided to the dime and does something, we'll be sit­ than the $74 billion allocated for begin this increased review process in ting here Ctn wheelchairs) 500 years from health care. March 1981, well before the January now."e As you would expect, the huge defi­ 1982 startup which Congress had rec­ cits this administration has projected ommended in order to allow for plan­ THE COST OF FINANCING THE for the next 4 years mean that both ning and staffing requirements. The ADMINISTRATION'S BUDGET the size of the national debt, and as a motivation for this decision was a MISTAKES result, the amount of interest we pay, clear example of budget cutting with­ will only get larger. out sound thought or planning. HON. FRANK ANNUNZIO The President's figures for 1983 are The results have been tragically cha­ OP' ILLINOIS most alarming. The administration es­ otic: Nearly 50 percent of the cases re­ timates that the national debt will be viewed have resulted in beneficiaries IN THE HOUSE OF REPRESENTATIVES $1,383. 7 trillion-a 20.6-percent in­ being dropped from the rolls. But ap­ Thursday, February 17, 1983 crease over 1982. The interest pay­ proximately two-thirds of those who • Mr. ANNUNZIO. Mr. Speaker, there ment for that year is estimated at appeal their termination to an admin­ has been a great deal of discussion in $88.9 billion. Again, that is more than istrative law judge have had those de­ recent weeks about the administra­ we will be paying for anything except cisions reversed, the highest reversal tion's budget proposal for fiscal year defense and the social security pro­ rate in history. Without doubt, the 1984. We have heard many people say grams. worst aspect of this process is that many things about the proposed And for the years that follow, the those who are reinstated lose their spending levels for our national de­ situation only gets worse. Even using SSDI benefits and accompanying med­ fense and for domestic programs. The the President's budget figures, the size icare coverage during the appeals one item we have not heard much of the national debt is estimated to be process, which often takes up to a full about is, somewhat surprisingly, the more than $2 trillion in 1986. The ad­ year. For a disabled worker and his or third-largest single outlay in the pro­ ministration projects interest pay­ her family entitled to these benefits, posed budget-the sum set aside to fi­ ments to go up to $122.7 billion-that the strain of living without them is a nance the national debt. means a 45-percent increase over the cruel tragedy. That one pays dearly for the privi­ next 4 years. Because of the pain and suffering lege of borrowing money to live Although it may be unfair to lay all caused by the review process and the beyond his means is a fact of modern the blame for this catastrophic situa­ public outcry, Congress late last year life. Whenever a consumer buys a tion at the administration's doorstep, passed Public Law 97-455. I wish to home or car on credit, he knows that it certainly deserves a great portion of commend the chairman of the Social the loan adds to the cost of his pur­ it. One does not have to look hard for Security Subcommittee, J. J. PICKLE, chase. He also knows that each time evidence to support that statement. for his concern for our disabled citi­ he borrows, he digs himself deeper Just considering some of the adminis­ zens and for his diligence in pressing into debt. For the consumer, the hole tration's more outrageous deficit-caus­ for passage of this legislation during can get just so deep because eventual­ ing programs will do it. the difficult closing days of the 97th ly the well runs dry. We did not, for example, need tax Congress. While I strongly supported Unfortunately, no one puts these re­ cuts for the very rich. We did not need this legislation, it was in some respects straints on the U.S. Government. It tax breaks for corporations. We do not only a temporary answer; in other re­ can borrow as much money as it wants need to eliminate the corporate spects I believe the Congress should go for the well never runs dry. The hole income tax. We do not need MX mis­ further. just keeps getting deeper. But like the siles nor Dense Pack. We do not need First, although Public Law 97-455 consumer, the Federal Government B-1 bombers. We do not need the provided for the continuation of SSDI pays dearly for the privilege of bor­ greatest peacetime military buildup in and medicare benefits during the ap­ rowing to live beyond its means. history. peals process, it did so only temporari­ Indeed, in the last 2 years, the cost of These unnecessary programs are ly-for those whose termination deci­ the Government's debt has skyrocket­ simply a waste of money. And financ­ sion is made before October 1, 1983. ed. ing them costs an incredible fortune. The Disability Amendments of 1983 By the end of 1982, the national As we begin consideration of the Presi­ would make this provision permanent. debt had risen to $1.147 trillion. That dent's budget proposal for fiscal year Like Public Law 97-455, my bill would February 17, 1983 EXTENSIONS OF REMARKS 2543 also provide that payments made those standards. This would not apply Government reserve that they can sell during appeal would be subject to re­ to cases terminated because of fraud or use as though it were their own. payment if the termination is upheld, or due to a finding that the individual The administration says that this subject further to waiver for financial has engaged in substantial gainful ac­ PIK program will both draw down the hardship or if the Secretary deter­ tivity. Establishing this medical im­ surpluses and raise market prices. I mines the appeal was made in good provement standard is extremely im­ hope so, for our farmer's sake. faith. portant since many people have found Even if PIK does work-it is at best Second, this legislation deals with themselves dropped from the rolls be­ just a rickety bridge over a bad year. the fact that the standards for review cause standards have changed even On the other side of this bridge, the are confused and often are in conflict though their medical condition has old problems are waiting for us. Unless among the various levels in the SSA not changed. Such treatment is gross­ we confront our farmers' basic prob­ adminstrative process. State agencies ly unfair and must be eliminated. Un­ lems, we are going to be right back which administer the program under fortunately, Congress did not act on where we are now. contract with SSA, often use stand­ this particular matter last year. It does not take long to understand ards which conflict with published Mr. Speaker, the anguish which has the farmer's problem. North Dakota SSA regulations, social security law, been wrought by the continuing dis­ wheat farmers who received $3.50 a and Federal court decisions. Surely, ability investigation process must not bushel for wheat that costs them this situation is indefensible. be allowed to continue. Congress has nearly $5.50 a bushel to grow are Therefore, the bill requires SSA to made a constructive and worthwhile bound to be in financial trouble. The promulgate, through the notice and start of rectifying this problem. But economists call this the "cost-price comment procedures of the Adminis­ we cannot stop there. The issues ad­ squeeze." Whatever you call it, it is a trative Procedures Act, uniform stand­ dressed in the disability amendments ards for disability determinations raw deal. of 1983 must be dealt with if we are to How did it happen? which would be applicable to all levels complete the job we started in the of decisionmaking and which would be When people talk about our "farm 97th Congress-to bring equity and program,'' they usually mean the price in accordance with social security law. fairness to our disabled citizens.e SSA would also be mandated to pro­ supports and deficiency payments, the mulgate regulations governing the diversions and set-asides and other purchase and use of consultative ex­ THE FAMILY FARMER-DOING complicated arrangements about aminations. WELL-AND LOSING MONEY which most Americans know little and Third, although the recently passed care less. But all those arrangements law did deal with the question of pro­ are not our real farm program. cedures to be employed in reviewing HON. BYRON L. DORGAN Our real farm program is our policy disability claims, this bill would go OF NORTH DAKOTA concerning money and credit-how will somewhat further in defining benefici­ IN THE HOUSE OF REPRESENTATIVES much there is and how much it aries' rights and would streamline the cost. Our real farm czar is not Agricul­ process in what I believe to be a pref­ Thursday, February 17, 1983 ture Secretary John Block. Our real erable manner. Under Public Law 97- e Mr. DORGAN. Mr. Speaker, the farm czar is Federal Reserve Board 455, the so-called reconsideration level farmers of this country are in bigger Chariman Paul Volcker. Against Mr. of appeal is done by the same State trouble than at anytime since the Volcker and his monetary policies, the agency which made the original deci­ Great Depression. rest of our official "farm program" is sion adverse to the claimant, although But their trouble is very different just a spit in the wind. it is done by a different unit of the from that of other parts of the econo­ Over the past few years, Mr. Volcker agency. This legislation would place my. has done what central bankers have the procedural safeguards before the Nobody is berating our farmers for endeavored to do in this country since initial adverse decision is made. The becoming sluggish and complacent, for the early days of the Republic. He has State agency, in making a preliminary falling behind the competition like our squeezed the supply of money and decision prior to termination, would be automobile and steel industries did. made credit tight and very, very ex­ required to notify the individual in Nobody is bewailing our farmer's lack pensive. clear language of the preliminary deci­ of productivity and shoving books on On farmers, the burden of this Fed­ sion, the reasons for it and the evi­ Japanese management into their eral Reserve Board policy has been dence relief upon, and the rights the faces. crushing. Farm debt has gone up 50 individual has to a personal Cf ace to American family farmers are our all­ percent over the last 5 years. Farmers face> interview with the examiner and star economic performers. They are are paying over five times the interest to present additional medical evidence. combining the most up-to-date meth­ they were paying in 1967. Of every If after this review benefits are termi­ ods with old-fashioned Yankee ingenu­ dollar a farmer gets for his grain, his nated, the next step, rather than re­ ity and hard work to become the most creditors get 14 cents off the top. The consideration, would be an appeal di­ efficient agricultural producers in the creditors end up with a bigger share rectly to an administrative law judge. entire world. They are doing exactly than the farmer himself does. At that stage a hearing would take what they are supposed to do. Meanwhile, farm incomes are lower place at which new evidence could be And they are going broke. in real dollars than they have been at introduced by the individual, a right Do we really have a "farm problem," any time since the Depression. which I believe to be critical if a fair or do our farmers have a "Washington That is the real farm policy. And it and complete decision is to be made problem?" Do we really have a surplus is just the beginning of the woe the and one which is also recognized by of crops or a deficit of wisdom about Federal Reserve Board has inflicted Public Law 97-455. what to do with them? upon the American farmer. Fourth, the bill provides that no dis­ The administration is about to When the Federal Reserve Board ability benefits may be terminated embark upon the latest of a long and keeps money tight and interest rates unless SSA makes a showing that tired history of farm fix-up schemes high, the effects ripple far outside our there has been a medical improvement coming from Washington. This one is borders. in the beneficiary's case such that the called payment-in-kind, or PIK. Under These policies have, for one thing, individual is no longer disabled under the PIK program, farmers will agree been a wet blanket on the economy of the standards in effect at the time of not to grow a certain percentage of the entire world. Developing countries the initial decision, or that the initial their normal crop. In return, they will in particular are gasping for their eco­ decision was clearly erroneous under get certificates for surplus crop in the nomic breath. Their debts are coming 2544 EXTENSIONS OF REMARKS February 17, 1983 due, the bankers are calling, and they the Soviets. The only people he is level rather than tilting it against have virtually no cash with which to really hurting are the American farm­ them. buy our grains or any other products. ers, who are losing markets that they I think we owe them that much. I Bad enough. But read on. need. think we also owe them a price floor The Federal Reserve Board's high Mr. Speaker, I am not suggesting that at least insures the family farmer interest rate policies also have made that if we just cleaned out the Federal who is a good manager a chance to the U.S. dollar more attractive to Reserve Board and had a halfway survive. And I think we must have international bankers and others who decent export policy, then everything loan deferrals for our good farmers speculate in the currencies of different would be sunshine on the farm. It who will go under without them. The countries. These speculators are will­ would not. To be a farmer is to be an high interest rates and low prices are ing to pay more in terms of other cur­ expert in difficulty. But these difficul­ rencies in order to get some of these driving many of our best young farm­ ties can be manageable. The money ers off the land. These are tomorrow's dollars. and foreign trade policies of this Fed­ The news commentators call this a producers and we cannot afford to lose eral Government have turned farm them. They need some breathing "strong dollar." We hear those words difficulties into farm catastrophies. on the evening news, "The dollar was Other Federal policies have been room. strong in trading today," and we feel a tending in the same direction. If this Government can bail out rush of pride. Whatever our other The Federal income tax laws offer Communist countries like Rumania problems, the good old American very big loopholes to rich lawyers, doc­ and Poland when they have debt prob­ dollar stands tall and strong in the tors, corporations and others who lems, then it sure as heck can help our eyes of the world. invest in farming as a tax shelter. family farmers when they have debt But what does this "strong dollar" These tax-loss farmers compete in the problems. really mean? land market with real farmers and bid If this Government can come to the For one thing, it means that when up the prices for land. rescue of the Bank of America and the people in other countries want to buy We hear a lot of talk in this town Chase Manhattan when their foreign something made or grown in America, about farmers living high off the hog loans go bad, then it can provide a they find themselves suddenly poorer. little breathing room to the family Their pesos, or yen, or marks, will buy thanks to Federal farm programs. them less in America than they will in The farmers in my part of the coun­ farmers of this country, especially other countries. try would like very much to know when the money and trade policies of Progressive Farmer magazine has re­ where this big hog is because they are this very Government have put the ported that world wide, our "strong not getting very much of it-unless of farmers into their bind to begin with. dollar" has been jacking up the price course, you consider debt defaults, Over a century ago, President Abra­ of American farm products by 25 per­ foreclosures, and red ink living high ham Lincoln warned us that "the cent. In other words, potential foreign off the hog. money power of this country will en­ customers get socked with a 25-percent Sure, there are some very big farm­ deavor to prolong its reign until all surcharge the moment they walk into ers-and corporate farms-in this wealth is aggregated in a few hands the door. Not because our farmers are country that have gotten more from and the Republic is destroyed." less efficient, but because the Federal the Federal Government than they de­ That is precisely where the Federal Reserve Board has made our dollar­ served. Just as there are medicaid doc­ Reserve Board is taking us today. and hence our farmers' products­ tors, defense contractors, and baloney­ Those with much are getting more and more costly. artist consultants who have taken more, while those with less are losing Farm exports have dropped for the Uncle Sam for a ride. I am for crack­ what little they have. It is happening first time in 12 years. Is it any wonder? ing down on all such abuse. Last year I in the farm belt, and it is happening in "Strong dollar" my foot. This is a tried, along with other House Mem­ America at large. "Big Banker's dollar" for the farmers bers, to limit Federal farm dollars to It is not fair and it is not the way and other producers of this country those family farmers who really this country was supposed to be. The who are trying to sell to other people needed them. Constitution entrusts the creation of in other countries. But the fact remains that over all, money to the people's representatives The Federal Reserve Board is not the farmers of this country have been the only player in our real farm getting between 1 and 2 percent of in Congress and to them alone. It was policy. Our official foreign policy ap­ their income from these Federal farm wrong to hand this power-the most paratus has also been doing an excel­ programs that supposedly are making fundamental tool of economic policy­ lent job of undercutting our farmers. them rich. That is a very small price over to a clique of money center bank­ The Carter administration, for ex­ to pay for the abundance we enjoy and ers elected by no one and called the ample, decided it would try to embargo for which our farmers are responsible. Federal Reserve Board. grain sales to the Soviets. This embar­ It is very small compensation for the Mr. Speaker, money and credit go had little noticeable effect upon burdens the Federal Government has should serve production. We will never the Soviets. It has a very noticeable been heaping upon our farmers and have prosperity in this country unless effect upon farmers in other countries, for the obstacles it has been throwing we stop using money policy to beat our who picked up the enormous new mar­ in their paths. producers into the ground. Our real kets that our farmers now lost. Mr. Speaker, our farmers are not farm program is our monetary pro­ It was not just the Soviet market looking for a handout. I do not think gram. And the only successful farm either. Nobody wants to do business there is a group in this country that policy will be a money and credit with a supplier who does not deliver. works harder, that contributes more policy that serves the family farmers Grain buyers throughout the world to our well-being, and that asks as and all the real producers of this land have become leery of us. When Alex­ little in return. · and gives them a chance to survive.e ander Haig and others in this adminis­ All our farmers ask for is a fighting tration started braying about new em­ chance. They ask for a dollar that is bargoes, they just made a bad export geared to the needs of real producers, situation worse. not to the desires of the financiers. President Reagan is still, to this day, They ask for a Government that pro­ refusing to enter into a long-term motes rather than impedes their farm grain agreement with the Soviets. Our exports. They ask for other Federal President seems to think he is hurting policies that keep the playing field February 17, 1983 EXTENSIONS OF REMARKS 2545 REAGAN BUDGET FREEZES people with virtually no additional re­ programs dropped by 3.5 million children. WOMEN AND CHILDREN sources to tap for financial assistance. Children in households headed by women Aid to Families with Dependent Children are a high percentage of the beneficiaries of : AFDC is a cash assistance program the child nutrition programs. HON. PATRICIA SCHROEDER that primarily aids female family heads and Special Supplemental Food Program for OF COLORADO their children. An average of almost 3.6 mil­ Women, Infants and Children : WIC, IN THE HOUSE OF REPRESENTATIVES lion families received AFDC assistance in funded entirely by the federal government, 1982 require all able-bodied adults to partici­ care to pregnant women, nursing mothers, last week the Women's Research and pate in employment activities; <2> terminate infants, and children under 5 who are poor Education Institute of the Congres­ the parent's benefit when the youngest and medically determined to be at nutrition­ child reaches age 16; (3) include all related al risk. Approximately 2.35 million women sional Caucus for Women's Issues adults and children in the AFDC assistance and children are currently in the WIC pro­ issued an alert on President Reagan's unit; and <4> adjust payments for shelter gram. An estimated 7 million more are eligi­ 1984 budget. The budget alert outlines and utility costs in shared housing. The ble but cannot be served because funds are how the Reagan budget freeze will Child Support Enforcement Program would insufficient. Nevertheless, the Administra­ affect women. I think it is must read­ also be strengthened. tion proposes to fund WIC in FY84 at the ing for every Member of Congress: As WREI pointed out in its assessment of same level as in FY83 <$1,060 million>. If in­ BUDGET ALERT similar proposals made by the Administra­ flation is taken into account, "level fund­ tion in 1983, the benefits of these proposals ing" amounts to a cut of about 5 percent. In its FY84 budget, the Administration are highly suspect. Families would be penal­ According to the Food Research and Action proposes a federal spending freeze that ized, for example, when they attempted to Center, this will translate into between would hold federal outlays for 1984 at the stretch scarce resources by living with 115,000 and 120,000 fewer people served by 1983 level, with a five percent inflation others or because shared housing was all the program in FY84 than in FY83. factor built in. This "freeze" applies to ag­ they could afford. With the present high It should be noted that nutritional defi­ gregate or total spending only and actually unemployment rate and reductions in fund­ ciencies during pregnancy, lactation and translates into a large increase for defense ing levels for training and employment pro­ early childhood can lead to miscarriages, and further cuts in spending for domestic grams, it is not clear just where these mil­ still births, low birth-weight babies , retarded children, would bear the brunt of the cuts day care services, which is a big "if". Work­ physical growth, mental retardation, and in­ proposed by the Administration. These are fare, or "make work" employment has not creased susceptibility to diseases. It has the same people who were disproportionate­ been found to provide much chance for skill been well-documented that children who re­ ly affected by earlier reductions in spending development, upward mobility, or economic ceive WIC food supplements, or whose for AFDC, medicaid, food stamps, child nu­ self-sufficiency. Moreover, if earnings result mothers were in the program during preg­ trition programs, and the like. The burden in too drastic a reduction in AFDC benefits, nancy and/or lactation, survive the first of the proposed freeze in cost-of-living ad­ many heads of households may find that month of life in greater numbers. have justments profit schools, camps, and institutions that pected to compensate for federal cuts in Food Stamps: Proposals for the Food do not participate in federally-subsidized health, education and social services pro­ Stamp program include <1> a six-month meal programs. grams. Hard hit by earlier federal cuts and COLA delay, which follows a 19-month ad­ The Administration proposes a 42 percent economic hard times, most are struggling to justment delay in 1981and1982; <2> a work­ cut-to $11, 720,000-in this program in keep their own budgets in balance. Al­ fare requirement for all able-bodied recipi­ FY84 although it seems likely that the de­ though 40 states have raised taxes in the ents; <3> replacing the current deductions mands on the program will grow. Changes past two years, and at least 32 have cut with a standard deduction of $140 per in the eligibility rules for federally subsi­ spending, 41 states surveyed last November month; and <4> establishing a new earnings dized meal programs. They are thus now eli­ anticipated deficits in FY83. No less than deduction of $75 per month for food stamp gible for the special milk program. half of all states were recently reported to recipients who work full-time. Food stamps Subsidized Housing: Subsidized housing have reduced their FY83 budgets at least would also be counted as income in deter­ programs assist many people, among them once since they were originally adopted. mining eligibility for and rents in subsidized single parents and the elderly, who are This Alert highlights those proposals housing. unable to afford adequate housing on their which, if implemented, would have a dispro­ Female-headed families and female house­ own. In 1981, 68 percent of the households portionately adverse impact on women. holders are over one-half residing in publicly owned or subsidized WREI's full holds is only about one-third that of all House Budget Committee points out that budget analysis will discuss the proposals in households in the country; nearly seven out since the changes in Administrations, funds more detail. of 10 of these households were living below for assisted housing have been reduced by INCOME SECURITY the poverty level in 1981. The poverty rate two-thirds. Residents in public housing also Social Security: The Administration as­ was substantially higher for elderly female now pay a higher percentage of their sumes that the recommendations of the Na­ recipients and for female family headed income for rent than was the case in the tional Commission on Social Security households. Whether these households past. Reform will be approved, including a six­ could compensate for the benefit cuts that Aside from 10,000 housing units for the month COLA delay. Of all the Commission's most of the proposals would entail is doubt­ aged, no money would be provided for new proposals, this is the one that would have ful. housing construction under Section 8 or the most negative impact on older women, Child Nutrition: the Administration pro­ public housing programs. Additional units some 16 million of whom are social security poses putting the summer food, child care would be provided from funding available in recipients. These programs, which supplement the A rural housing block grant, administered Supplemental Security Income : SSI often inadequate diets of poor children, by the states, would replace the existing is a cash assistance program for impover­ would also be subject to a cost of living ad­ rural housing loan program; funding for ished aged, blind, and disabled individuals justment delay. this grant would constitute about one­ and couples. Two-thirds of the approximate­ The Administration's proposal comes on fourth the current funding level. ly 4 million SSI recipients and nearly three­ top of substantial reduction in funding for The Administration also proposes using fourths of the aged ones were women in nutrition programs in the Omnibus Budget food stamps to determine eligibility for sub­ 1982. The Administration's proposed six­ Reconciliation Act of 1981, after which par­ sidized housing and rents. a move rejected month COLA delay would affect a group of ticipation in the school lunch and breakfast by Congress last year. The effect of this 2546 EXTENSIONS OF REMARKS February 17, 1983 proposal would be to penalize the poorest of In all the history chronicled in Dur­ The State Department report adds that a the poor, i.e., persons receiving the most in ant's monumental, 11-volume work, physician in a facility treating casualties food stamps would pay the most in rent. "The Story of Civilization," in no among the Mujahidin more true than in the history of the red skin lesions that he said were caused by Low-Income Energy Assistance: This pro­ Soviet chemical attacks in Qandahar prov­ gram makes grants to states to assist low­ Soviet Union and its client states. ince in May and June 1982. income households with their energy costs. As E. J. Dillion observed in 1930: "Three Mujahidin died within 12 hours of For fiscal year 1984, a sharp drop in budget Sovietism is no mere philosophy content one attack in the general area of Maharijat authority and outlays is proposed. In addi­ to assert itself or even endoctrinate others south of Qandahar," said the report. "The tion, funds would be directed to states with by convincing, persuading, or cajoling them Mujahidin claimed that Soviet helicopters severe climates and a large low-income pop­ • • • , counseling, ty, propaganda, and the kindly face of yellow gas through a hose into the water­ family planning, transportation, legal serv­ socialism. ways." ices, and substitute care and/or day care for The following material is presented Dean, who claimed the United States does the adults . The states may also divert up to 10 The material follows: weapons, said the use of chemical warfare is percent of their social services block grant CFrom the Washington Times, Nov. 30, standard with Soviet forces, despite the fact allocation to various health services and/or 1982] that the 1925 Geneva Protocol and the 1972 low-income energy assistance. They have Biological and Toxic Weapons Convention wide discretion in determining what services SoVIET CHnlICAL ATTACKS DESCRIBED clearly outlaws even the possession of such to provide and in setting eligibility criteria. weapons. The Administration proposes a two per­ The State Department yesterday unveiled At yesterday's conference the State De­ cent increase in Budget its second report this year on the Soviet­ partment officials demonstrated the human Authority and a seven percent decrease in controlled use of chemical weapons in misery of such chemical attacks by releasing outlays for the social services block grant in Southeast Asia, detailing for the first time photographs of a 15-year-old H'Mong boy fiscal year 1984. showed HON. HARRY M. REID infuse programs for the poor with their own that mycotoxins were being used in Laos funds, to make cruel choices. No matter how and Kampuchea by Vietnamese and Lao OF NEVADA priorities were set for the allocation of forces, acting under direct Soviet supervi­ IN THE HOUSE OF REPRESENTATIVES social services block grant funds, poor sion," said Dean. "The evidence available to people-the majority of whom are women us at that time, however, did not permit us Thursday, February 17, 1983 and children-would surely suffer.e to show conclusively that mycotoxins were also being used by Soviet forces in Afghani­ • Mr. REID. Mr. Speaker, to run or stan." not to run? Hardly a day passes that SOVIET WATCH MycotoXins are poisons produced by cross­ the American public is not confronted breeding fungi. with the question of President Rea­ "We now have such evidence. Analysis of gan's intention in 1984. I would like to HON. JACK FIELDS the surface of one of these gas masks has OF TEXAS revealed the presence of T-2 mycotoxin. take this opportunity to share with IN THE HOUSE OF REPRESENTATIVES The results have been confirmed by two my colleagues the following remarks Thursday, February 17, 1983 other laboratories. Similar analysis of mate­ of Mr. Reid Gardner, a good friend of rial from the other Soviet gas mask, taken mine from Las Vegas, Nev., with re­ e Mr. FIELDS. Mr. Speaker, in 1935 from the head of a dead Soviet soldier in Af­ spect to the President's dilemma: the noted historian, Will Durant, ghanistan, revealed the presence of myco­ toxins also. With year eighty four wrote: "For barbarism is always Approaching the door around civilization, amid it and be­ "We believe, accordingly, that these neath it, ready to engulf it • • • Bar- masks were worn by Soviet soldiers during Our Reagan will announce any day. operations in Afghanistan in which a toxic That he'll run is a cinch barism is like the jungle; it never agent was used." Of course, there's a pinch admits its defeat; it waits patiently for Dean did not explain how U.S. officials He will run but we can't tell which way.e centuries to recover the territory it obtained the gas masks but he said he was has lost." certain of their authenticity. February 17, 1983 EXTENSIONS OF REMARKS 2547 DAIRY SURPLUS REDUCTION Clearly, freezes and deductions alone have his payment capped at the ACT do not work. Rather, we need a cre­ agreed percentage reduction plus 3 ative solution to the problem-one percent. HON. STEVE GUNDERSON that provides a financial incentive for As an example, a producer who producers to participate and a finan­ agrees to reduce 10 percent but actual­ OF WISCONSIN cial incentive, from a budgetary stand­ IN THE HOUSE OF REPRESENTATIVES ly reduces less than 7 percent of his point, for the administration and Con­ 1982 marketing level must refund his Thursday, February 17, 1983 gress to adopt. advance payment. If, instead, that pro­ e Mr. GUNDERSON. Mr. Speaker, I THE BIPARTISAN SOLUTION ducer would have reduced more than am very pleased today to join Con­ The legislation we are introducing 13 percent of his 1982 marketing level, gressmen OBEY, SENSENBRENNER, today achieves these goals by signifi­ his incentive payments would be PETRI, ROTH, and KASTENMEIER in in­ cantly reducing the surplus dairy com­ capped at 13 percent. troducing the Dairy Surplus Reduc­ modities the CCC must purchase as Assignment. A producer who trans­ tion Act, a bipartisan plan to solve the well as the 3-year cost of the dairy fers all of his interest in his produc­ current imbalance in the supply of and price support program. At the same tion facility and his dairy cows to an­ demand for dairy products in the time, it affords participating producers other may also assign his contract United States. Senators PROXMIRE and a greater annual income than under with the ASCS to that trans!eree if KASTEN are introducing identical legis­ the current dairy program. the producer and the transferee agree lation in the other body today as well. Basic provisions. The Dairy Surplus in writing that the transferee succeeds Reduction Act establishes a voluntary to all the rights and liabilities of the THE SURPLUS PROBLEM program for dairy producers under As of the beginning of this month, producer under the contract. which they will be paid $10 per hun­ Penalty. A producer who violates a the Commodity Credit Corporation dredweight for reductions made in the held 763.2 million pounds of cheese, milk they market commerically. term of his contract with the ASCS 414.8 million pounds of butter, and The Secretary of Agriculture must other than not meeting the agreed 1.282 billion pounds of nonfat dry implement the incentive program percentage reduction may be subject milk. Annual storage costs for these whenever he estimates annual Com­ to a fine of up to $10,000 in addition to surplus commodities are approaching the forfeiture of any advance payment modity Credit Corporation purchases plus interest. $60 million. will exceed 5 billion pounds-milk This unprecedented level of excess equivalent-and makes a 50 cents per Adjustment. If, after adding up the dairy commodities results from a com­ hundredweight deduction in the sup­ total reduction under all of the indi­ bination of Government actions and port price for milk. vidual contracts, the Secretary deter­ economic conditions including the The incentive payments will be mines that total commercial market­ grain embargo, freezes in the support funded from a single 50 cents per hun­ ings will be reduced by more than the price, depressed grain prices, lender dredweight deduction. Authority for a amount required to bring it into bal­ encouragement to expand production, second 50 cents per hundredweight de­ ance with consumption, he may adjust and the current recession. These con­ duction under current law is repealed. each individual contract pro rata to ditions have temporarily increased the The support price for milk will remain prevent such an overreduction from number of milk producers and the av­ at $13.10 per hundredweight for 3.67 occurring. erage amount of milk each producer percent butterfat milk through Sep­ COST AND INCOME PROJECTIONS markets. tember 30, 1985. Assuming program implementation In fact, in fiscal year 1982 the CCC Tenns of the contract. A participat­ on April 1, 1983, Dr. Robert A. Cropp, purchased 13.8 billion pounds-milk ing dairy producer will contract with agricultural marketing specialist for equivalent-of surplus dairy commod­ the ASCS to reduce his commercial the University of Wisconsin extension, ities at a cost of $2.2 billion. While marketings by between 5 and 30 per­ projects the 3-year cost of the dairy that cost equals what was spent on the cent of his calender 1982 marketings. program under the Dairy Surplus Re­ wheat program and is a far cry from Contracts will be for a 1-year period duction Act to be $2.397 billion-$1.217 the $5.4 billion spent on the feed coinciding with the milk marketing billion in fiscal year 1983, $695 million grains program, virtually everyone year. in fiscal year 1984, and $485 million in agrees that we must decrease the cost A participating producer agrees not fiscal year 1985. That compares with a of the dairy program to the Govern­ to let others produce milk in the por­ 3-year estimate of $2.582 billion under ment. tion of his production facility unused the current program. That is a savings And the only way that can be accom­ because of the contract. Similarly, he of $185 million. plished in the long run is by effective­ agrees not to transfer dairy cows More significantly, Dr. Cropp esti­ ly reducing the surplus that the Gov­ unused because of the contract to an­ mates that CCC purchases under the ernment must purchase. other for the production of milk Dairy Surplus Reduction Act to be Last year, Congress addressed this unless that trans!er is to another par­ 8.95 billion pounds in fiscal year 1983, problem by authorizing two deduc­ ticipating producer or unless the cows 3.89 billion pounds in fiscal year 1984, tions in the support price for milk-50 are registered and trans!erred primari­ and 2.65 billion pounds in fiscal year cents per hundredweight through ly for breeding purposes. 1985-a 3-year total of 15.49 billion April 1, 1983, and $1 per hundred­ Payments. The ASCS will pay one­ pounds. That is less than half the ex­ weight thereafter. At that time, there half of the total payment due under pected 34.36 billion pounds of CCC were those of us who warned that this the contract to a producer within 30 purchases under the current program. would increase rather than decrease days of the signing of the contract. Similarly, a dairy producer will in­ the surplus as producers marketed The remainder is due within 30 days crease his annual income by partici­ more milk to recover their diminished of proof of completion of the contract. pating in this voluntary incentive pro­ profit over a greater amount of pro­ Completion. A producer is expected gram. Dr. Cropp calculates that a par­ duction. to complete his contract within 3 per­ ticipating producer with a total herd Recent USDA projections confirm cent of the agreed percentage reduc­ production of 625,000 pounds of milk this prediction. It is expected that tion in 1982 commercial marketings. A in fiscal year 1982 will have an annual total commercial marketings in fiscal producer who reduces marketings by income before expenses of $81,867 by year 1983 will increase 2.6 percent na­ less than this target must refund his marketing 91 percent of his 1982 pro­ tionwide and that the CCC will pur­ advance payment plus 12 percent duction level. That compares with chase 14.2 billion pounds this year-a simple interest. A producer who re­ $78, 750 for a producer who markets new record. duces by more than this target will 100 percent of his 1982 production 2548 EXTENSIONS OF REMARKS February 17, 1983 under the Dairy Surplus Production Under the current rules established the case and argue it. He cannot make Act and $75,625 for a producer market­ by the court, no distinction is made be­ use of the certified public accountant ing 100 percent of his 1982 production tween qualifying for representation in or enrolled agent who knows how the under the current program. small cases and qualifying for repre­ return was prepared and has the Thus, the Dairy Surplus Reduction sentation in other cases. Attorneys knowledge of the tax rules required in Act increases participating producer qualify for practice before the Tax the first place to do his job and to income while saving both present and Court by filing an application that is defend the return's preparation before future taxpayer expenditures on the accompanied by a certificate from the the court. dairy price support program. As such, Clerk of the U.S. Supreme Court or Enabling the taxpayer to make use it is in the best interest of all con­ from the high court of any State or of the individual who helped prepare cerned for Congress to give this legis­ territory or the District of Columbia his return would greatly expedite lation prompt and timely consider­ showing that he or she is a member in many cases before the Tax Court, and ation. good standing of the bar of that court. the fact is that time is an increasing I, therefore, urge my colleagues to Any individual who is not an attorney problem for the court. The 1981 join those of us introducing this legis­ and wishes to practice before the Tax annual report of the Commissioner of lation today in seeking a fair and equi­ Court must file an application, be Internal Revenue and the Chief Coun­ table solution to the problems present­ sponsored by at lea.st three persons al­ sel for the Internal Revenue Service ly facing the dairy industry.e ready admitted to practice before the indicates that the number of cases court, and, most importantly, pass a before the Tax Court has been in­ written examination given by the creasing at an extremely rapid pace. ACCOUNTANTS AND ENROLLED court. 29,512. At the end of fiscal year 1981, HON. LEON E. PANETIA There are many good reasons to more than 46,000 cases were pending maintain this qualifying distinction before the court, and the backup has OF CALIFORNIA since increased. As the Chief Counsel IN THE HOUSE OF REPRESENTATIVES for major cases before the Tax Court. Those cases are decided under basic of the IRS states in that report, "we Thursday, February 17, 1983 rules of evidence with which those have to develop procedures for more •Mr. PANE'ITA. Mr. Speaker, I am who are not attorneys cannot be ex­ efficient handling of cases." today introducing legislation which pected to be sufficiently familiar with­ The fact is that cases abjudicated would correct a significant but easily out some additional training. An ex­ under section 7 463 make up more than remedied problem relating to repre­ amination to determine whether suffi­ one-third of the Tax Court's caseload. sentation of taxpayers in cases before cient knowledge has been acquired is Speeding these cases would help to the U.S. Tax Court. My bill would reasonable. bring about the increased efficiency eliminate needless restrictions against However, for cases involving $5,000 and effectiveness of court procedures representation of taxpayers by certi­ or less, the whole point of section 7463 which the Chief Counsel states are se­ fied public accountants and enrolled is to provide a less formal setting to riously needed. tax agents in cases where a relatively insure a fair and rapid resolution. An Mr. Speaker, I am introducing this small amount of money is at issue. individual representing a taxpayer in legislation at a fairly late date for its There are two sections of the Inter­ such cases does not need to know a consideration during the 97th Con­ nal Revenue Code relevant to this great deal about the rules of evidence gress. However, I intend to reintroduce question-sections 7452, relating to since they are not in effect. it early in the next Congress and hope representation of parties before the Of course, it is important that those to gain its rapid approval. This is a bill Tax Court, and 7463, relating to dis­ representing taxpayers before the Tax that would enhance the rights of tax­ putes involving $5,000 or less. Court know tax law. However, there is payers and improve the efficiency of The first prevents the denial of ad­ at lea.st as much reason to assume that our tax litigation procedures, and I mission to practice before the court to an accountant or an individual en­ hope it will have the support of my any individual on account of his "fail­ rolled to practice before the Internal colleagues. ure to be a member of any profession Revenue Service knows tax law as At this point in the record, I would or calling." However, it does not pre­ there is to assume that an attorney like to insert the text of the bill I am vent the court from establishing rules who may or may not have kept up introducing today: making it more difficult for members with or even have any experience in H.R.1540 of a particular profession to qualify. tax law. A bill to amend the Internal Revenue Code The second, section 7563, establishes Most taxpayers who obtain outside of 1954 to provide that certified public ac­ a less formal procedure for the han­ assistance in the preparation of their countants and enrolled agents may repre­ dling of cases involving sums of $5,000 returns employ certified public ac­ sent taxpayers in certain Tax Court cases or less. In most cases, formal proce­ countants or enrolled agents author­ involving $5,000 or less dures "in accordance with the rules of ized to practice before the IRS. But if Be it enacted by the Senate and House of evidence applicable in trials without a they get involved in a dispute with the Representatives of the United States of jury in the U.S. District Court of the IRS, they must hire an attorney if America in Congress assembled, That District of Columbia" are required. they wish to take their case before the section 7463 of the Internal Revenue Code of 1954 is amended by adding at the end bility in small cases to conduct pro­ few accountants or enrolled agents thereof the following new subsection: ceedings in a manner that protects the who have qualified to practice before "(g} REPRESENTATION OF TAXPAYER.-ln taxpayer's rights but also allows a the court. Otherwise, they must take any case in which the proceedings are con­ more rapid, nonappealable settlement the risk of representing themselves. In ducted under this section, any person who of the case. In these cases, the stand­ small cases it is very costly for the tax­ is- ard rules of evidence are not enforced. payer to hire an attorney who is com­ "(1) a certified public accountant, or "<2> an enrolled agent authorized to prac­ Operating under this procedure is the pletely unfamiliar with the case. The tice before the Internal Revenue Service, taxpayer's option; it is not mandatory, taxpayer must pay for the time it shall be allowed to represent the taxpayer." and he may choose instead the more takes the attorney to familiarize him­ Cb> The amendment made by subsection formal procedure required in other self with the case as well as for the shall take effect on the date of the en­ cases. normal time it would take to prepare actment of this Act.e February 17, 1983 EXTENSIONS OF REMARKS 2549 REBUILDING AMERICA'S In 1976, the New England Regional THE KGB IN ITS 65TH YEAR RAILROADS Commission funded a rail rehabilita­ tion program. Under that program, Thursday, FebruaTY 17, 1983 was begun almost immediately. The Because Lenin believed that "The courts must not ban terror, but must formulate the •Mr. CONTE. Mr. Speaker, today I railroads supplied the necessary ad­ motives underlying it Candl legalize it as a am introducing legislation that will ministrative personnel and all materi­ principle," he created the Soviet secret help deal with two of our most press- als, thereby insuring that virtually police sixty-five years ago this month, on ing national problems, the continuing every dollar appropriated was spent di­ December 20, 1917. Once called the Cheka, high rate of unemployment and the rectly on the unemployed. Increased and now known as the KGB, the organiza­ shocking decay of our transportation maintenance on the railroads in­ tion has had many names throughout its infrastructure. creased energy efficiency, improved history. It has known only one purpose, The Economic Recovery Through safety, and strengthened an important however; to act as the "Sword and Shield" of the Communist Party of the USSR. Railroad Revitalization and Roadbed part of the transportation system. The Cheka, of "All-Russian Extraordinary Restoration Act of 1983 would author- This last point is particularly impor­ Commission for Combating Counter-Revolu­ ize $300 million for eligible railroads tant. This Nation's transportation tion, Speculation, and Sabotage," began as and governmental entities to hire em- system is a key element in the estab­ an investigative agency charged to search­ ployees to repair and improve rail- lishment and maintenance of a strong out deviant communists. It was swiftly road beds and facilities. These funds economy. Business and industry can transformed into a secret police force with could only be spent on wages and ben- plan more efficiently and ship more innumerable duties and few discernible re­ efits, with the railroads themselves economically when our transportation straints. Feliks Dzerzhinsky, the agency's first director, laid down his policy: "We supplying all materials. system is sound, and that can only stand for organized terror," he declared. The program I am proposing would mean more jobs for American workers. Under his direction, the first 200,000 "offi­ meet the following criteria: The legislation that I am introduc- cial" executions occurred; hundreds of thou­ First, it will provide jobs quickly; ing Will create jobs while minimizing sands of other Russians disappeared into Second, it will create private sector the cost to the Federal Government. It the first Soviet Gulag Archipelagoes, where jobs with some prospect for continued is based on a program that has proven uprisings cost 300,000 more lives. employment by the workers; its effectiveness in a real world setting. Already by March, 1921, Petrograd sailors Third, it will require minimal admin- Mr. Speaker, I hope that this legisla- issued a istrative costs: and tion will be considered at the earliest manifesto declaring communism to have Fourth, it will provide the American possible date.e "brought the workers, instead of freedom, taxpayers with long-lasting economic . an ever-present fear of being dragged into benefits. the torture chambers of the Cheka, which This legislation should create an es­ THE 65TH ANNIVERSARY OF exceeds by many times in its horrors the timated 15,000 direct jobs, and should THE KGB gendarmerie administration of the Czarist regime." And yet the Leninist-Dzerzhinsky create a demand for approximately regime was to appear almost Inild by con- · 200 million dollars' worth of building HON. JAMES G. MARTIN trast with that of Stalin and Beria which materials, including concrete and steel. succeeded it. In addition to this much-needed eco­ OF NORTH CAROLINA Dzerzhinsky Square, two blocks from the nomic stimulus, it is estimated that IN THE HOUSE OF REPRESENTATIVES Kremlin, is the site of KGB headquarters. the Government would immediately Thursday, FebruaTY 17, 1983 The building is not marked; everyone knows save $1 out of every $3 spent on this what it is. There is a new statute of Dzerz­ program because of reduced unem­ • Mr. MARTIN of North Carolina. hinsky, raised by Khrushchev, who, if he ployment compensation, welfare bene­ Mr. Speaker, on December 20 of last closed some of Stalin's concentration camps year the Soviet KGB, or Committee and executed Stalin's chief of secret police, fits, and tax revenue gains. Beria, nonetheless pledged to "strengthen Mr. Speaker, a 1978 study by the on State Security, celebrated its 65th in every way revolutionary vigilance and the Federal Railroad Administration anniversary. Only a month before, the organ of state security." He renamed the found that American railroads had Bolsheviks' heirs had observed the agency the "Committee for State Security," over $16 billion in deferred mainte­ 65th anniversary of the November rev­ or KGB, but still called its personnel "our nance. The current recession has exac­ olution. Thus, the secret police has ex­ Chekists." He brought the reorganized erbated this problem, as railroads find isted almost from the day of the KGB more within the control of the Party, founding of the Communist state in and gave it more funding as well as new, it harder and harder to keep operat­ international dimensions. ing, much less keep maintenance cur­ Russia. Without the KGB, the regime The Brezhnev legacy was one of explosive rent. The result is the familiar vicious knows, it could not survive. growth. And it was under Brezhnev's eye cycle of deteriorating service, loss of Words alone can hardly describe this that Yuri Andropov and his lieutenants revenues, further deferral of mainte­ most sinister and brutal of any organi­ made their steady advance into positions of nance, and even worse service. The zation in the long history of human government and party power. CNo KGB program I have proposed can not only repression. More than a police force, it chief since Stalin's Beria had even been a put people to work at useful, produc­ is a vast army subjugating a sullen Politburo member; Andropov became one in empire. 1973. The next year he received the Order tive jobs, but can help break this vi­ of Lenin for his "direct and active part in cious cycle. The resulting improve­ Following is a brief account of the working out the implementing the home ments in railroad operating efficiency KGB by Christopher Harmon. I com­ and foreign policies of our party and and can help reduce shipping costs and mend to my colleagues his summary of the Soviet state." Since 1977, KGB person­ fuel consumption. the extensive, lamentable catalog of nel have been winning the highest kinds of Mr. Speaker, there has been a con­ Communist crimes. This is of vital government and party positions and honors. tinuing debate in this House as to practical significance, as the new The KGB chief of the Azerbaijan sector, leader of the Bolshevik state has as­ Geydar Aliyev, had not even been part of whether any jobs program really the Politburo; suddenly he is First Deputy serves its intended purpose. The legis­ sumed his position after 15 years Premier, the possible successor to Premier lation I am introducing today has al­ training as head of the KGB. We must Tikhonov.l The promotion of KGB head ready been tested and the results pro­ understand fully the background of Andropov to general secretary of the Com­ vide ample evidence that it will work. Yuri Andropov. munist Party was,

11-059 0-87-38 (Pt. 2) 2550 EXTENSIONS OF REMARKS February 17, 1983 of course, without any precedent in Soviet tinian guerrillas, including Fata.h's internal nity to learn a good many things history. security unit, and polices the police in Ethi­ about resource development in the The new KGB chief is a 64 year-old opia, Angola and Mozambique.] West, particularly about the tremen­ Ukrainian, Vitaly Fedorchuk. He commands [Czech intelligence agents, serving Cuba perhaps 90,000 staff officers, some 200,000 at Castro's request between 1959 and 1961, dous contribution western coal can to 300,000 specially armed border troops, helped to prepare Cuba for the eventual make to our national energy needs. and tens of thousands of other paid inform­ and complete surrender of its own DOI serv­ One of the most important lessons we ants and agents. If he has a budget, it is vir­ ice to the KGB's control. Czechoslovakia have learned is that natural market tually unlimited. And government, party, has been a refuge for Italian terrorists since forces will account for more coal pro­ and army organizations provide logistical the 1940s, and Karlovy Vary and other duction than will rigid statutory re­ and other support free. , training centers routinely serve the Red Bri­ gades. Secret service operations against quirements. The "Chief Directorates" conduct foreign We have also had the opportunity to operations, border control, and routine and Czech emtgres on French soil earned a special operations against the Soviet popu­ formal protest from Francois Mitterand this learn of the deficiencies of the 1976 lation, foreigners, and tourists. The KGB January. Even the supposedly "maverick" coal leasing amendments. While the works closely with, and oversees, the GRU, and "independent" Roumanians were re­ legislation I offer today does not ad­ or military intelligence service of the Red cently discovered to be conducting wide­ dress all of those deficiencies, it does Army General Staff. KGB officers staff the spread KGB espionage operations from address those which require our imme­ armed forces at every echelon down to the their embassy in Washington, D.C.l CThe KGB must be taken seriously. Re­ diate attention. Foremost among the company level. They wear military uni­ problem areas is the provision in sec­ forms, but report through their own chain cently England's Royal Academy voted to of command, and can disobey military retain as one of its own Anthony Blunt, a tion 3 of the FCLAA which prohibits orders. KGB subdivisions and special de­ confessed and convicted Soviet spy. Derid­ the issuance of any type of mineral partments protect all Party members and ing those who sought Blunt's expulsion lease to an entity who holds and has their families, maintain the ruling elite's from the Academy, historian A.J.P. Taylor held for a period of 10 years a Federal communications, oversee finance and probe said: "It was Just like McCarthy in America coal lease without producing that economic crimes, monitor and control do­ all over again." He was wrong. The KGB is a potent orga­ lease in commercial quantities. This mestic sentiment, maintain archives and provision has been interpreted to special technical laboratories, and, in enti­ nization threatening in a deadly way not ties like the Serbsky Institute for Forensic only people under Soviet rule but Western­ mean that the lessee will be barred Psychiatry in Moscow, pioneer the use o! ers as well. It is not McCarthyism to take from acquiring any additional coal medicine for malevolent political purposes. action against those who aid it.l leases, or leases for oil and gas, oil The "Fifth Chief Directorate," formed in Lenin believed that "the scientific concept shale, sodium, potassium, phosphate, 1970, combats expressions of religious and of dictatorship means neither more nor less or for any other type of lease obtain­ nationalist feeling, political dissidence, and than unlimited power resting directly on able under the Mineral Leasing Act of intellectual and artistic independence. force." Until such time as the USSR is ruled by popular consent, it will continue to be 1920, simply for failure to produce one There are special departments in some field 10 offices for "Jewish Affairs." ruled by force and by fear. These are the Federal coal lease within years. During the last few years, this national only means of persuasion "our Chekists" The harshness of this penalty and international apparatus has crushed a have ever known.e cannot be overstated. It is a penalty nascent Soviet peace movement with arrests that applies only to coal. No other and psychiatric treatment, while funneling leasable mineral under the 1920 act is large sums into the same kind of movements A BILL TO AMEND THE MINERAL LEASING ACT OF 1920 subject to such a provision. Coal pro­ in the West, and spending millions on duction on a Federal lease bears no re­ "peace" front organizations based in lationship to development activities on Moscow, Sophia, and Prague. It has arrested HON. RAY KOGOVSEK leases for other minerals, and f oreclos­ the last of the founders of "Smot," a free OP' COLORADO trade union movement in the USSR, while ing the ability of a coal lessee to ac­ leading and paying for union strikes in Por­ IN THE HOUSE OF REPRESENTATIVES quire leases for other minerals, simply tugal, New Zealand, and Costa Rica. It has Thursday, February 17, 1983 for failure to develop one coal lease, is brought to heel the last members of the e Mr. KOGOVSEK. Mr. Speaker, I neither sound public policy nor good "Helsinki Watch" committee on human along with several of my colleagues, resource management. rights, even as it built up a new gulag for The section 3 penalty is also unnec­ 100,000 political prisoners, many of them am introducing legislation today to women, for construction of the new pipe­ amend the Mineral Leasing Act of essary in light of new authority under line. It regularly dispatches KGB and GRU 1920, as that act was amended by the the 1976 amendments to terminate "scientists" to pose at, and politicize, inter­ Federal Coal Leasing Amendments Act coal leases not producing in commer­ national scientific conventions; yet at least of 1976. cial quantities by a date certain. The two legitimate Soviet scientists were kid­ This legislation would address three public interest is not served by this napped by the KGB from an Austrian U.N. provisions of the 1976 amendments provision of section 3. It is unneces­ agency when their loyalties became suspect. sary overkill and should be eliminated. CBut the most masterful of the KGB's op­ which are impediments to, rather than erations has been its careful construction of incentives for, production of Federal The second provision of FCLA.A that the intelligence and "active measures" net­ coal reserves in the West. Those provi­ is addressed by the bill I introduce works in its satellite countries. In wartime, sions were the product of a Congress today is the requirement in section 5 Stalin's secret police cooperated with the concerned about our national fuel that all lands within a logical mining Gestapo to identify and liquidate the most supply situation following the OPEC unit be contiguous, or touching. A logi­ democratic of the resistance leaders in oil embargo in the winter of 1973-74. cal mining unit is a mechanism that Poland and Czechoslovakia. Since the war, Although the 1976 amendments were facilitates unitization of coal proper­ Eastern Europeans have been taken to spe­ cial Soviet intelligence schools, where each thought at the time to be an appropri­ ties so they can be developed in an ef­ national group is kept separate from the ate solution to the lagging contribu­ ficient, economical, and orderly others, and all are studied, tested, and some­ tion Federal coal was ma.king to our manner. This requirement does not times co-opted by the Soviet "uncles." By domestic energy output, certain provi­ recognize, however, that coal deposits dominating each satellite's intelligence ap­ sions are now proving to be counter­ may be interrupted by physical sepa­ paratus as it dominates their governments, productive to the orderly development rations or geologic conditions, and Moscow has added a parallel network to its of coal in the public domain. Instead that surface contiguity may be de­ own, allowing more intense activities within of achieving the intended result of stroyed by legal separations such as the Bloc and expanded international oper­ ations. The East German service, for exam­ stimulating development, these provi­ rights-of-way or boundary lines. The ple, is directed by Misha Wolf, an Andropov sions are frustrating coal development. deletion of the contiguity requirement protege.J CEast Germany maintains between Mr. Speaker, in the last 6¥2 years from the definition of a logical mining eight and ten thousand agents in Western since the enactment of the 1976 unit that I propose would permit the Germany, helps the KGB handle the Pales- amendments we have had the opportu- formation of such units in those situa- February 17, 1983 EXTENSIONS OF REMARKS 2551 tions where, but for the technical re­ the Internal Revenue Service some any doubt about the status of this im­ quirements of actual touching, it $33,000 in back FICA taxes. Because portant community organization. makes economic and geologic sense to this was completely unintentional, and Mr. Speaker, at this point in the mine various properties as a unit. The because Meals on Wheels will prob­ RECORD I would like to insert the text desired result of efficient mining will ably have to close down if it is forced of my bill: be frustrated by this contiguity provi­ to make this payment, I am introduc­ H.R.1561 sion unless it is deleted. ing this bill to relieve the organization A bill for the relief of Meals on Wheels of The third provision of FCLAA ad­ of its debt to the IRS and to provide it the Monterey Peninsula, Inc. dressed by the amendments I offer is with the FICA tax exemption that is Be it enacted by the Senate and House of the requirement in section 6 that an normally available to nonprofit orga­ Representatives of the United States of operation and reclamation plan be nizations. America in Congress assembled, That submitted within 3 years from the Under current law, a nonprofit orga­ with respect to service performed in its date of lease issuance. This provision nization such as Meals on Wheels has employ after 1975, Meals on Wheels of the is interpreted to mean the submission the option to declare whether or not Monterey Peninsula, Inc., shall not be con­ of a plan which demonstrates that the its employees will participate in the sidered to have filed of the Internal Revenue Code of social security system. If there is an 1954> or to have filed constructively C4> or <5> of such Code> acer­ plan cannot be designed with any tion is obligated to withhold the em­ tificate waiving its exemption from payment degree of specificity until the lessee ployees' share of the FICA tax as well of taxes imposed by chapter 21 of such has a customer because the plan will as to pay its own share of the tax. Code. be tailored to suit the customer's When the organization was founded Cb> Meals on Wheels of the Monterey Pe­ needs. The lessee may not have se­ in 1972, it apparently filed a waiver of ninsula, Inc., and any individual in its cured a customer for the coal by that its exemption for participation and employ before the date of the enactment of time. Moreover, the requirement that this Act are relieved of all liability to the paid taxes on some employees through United States for the payment of unpaid the plan be submitted within 3 years is 1975. However, around that time, taxes imposed by chapter 21 of the Internal superfluous in light of the exhaustive Meals on Wheels hired a new account­ Revenue Code of 1954 cation which must be submitted under ganization that it was exempt from with respect to service performed in the the Surface Mining Act. social security taxes. At that point, employ of Meals on Wheels of the Monterey By eliminating only the 3-year sub­ Meals on Wheels stopped reporting Peninsula, Inc., before such date.e mittal aspect of the requirement in and withholding for FICA taxes, and section 6 of the FCLAA, the lessee no payment has been made to the IRS MORRIS UDALL'S VOTES IN THE could submit his operation and recla­ for FICA taxes since that time. HOUSE mation plan at the same time he sub­ The Internal Revenue Service now mitted his mining and reclamation proposes to assess Meals on Wheels HON. MORRIS K. UDALL permit application. At that time, the for FICA taxes from 1976 on, an lessee would know more about his cus­ OF ARIZONA amount which stands at more than IN THE HOUSE OF REPRESENTATIVES tomer's requirements and, hence, more $33,000 and which, naturally, contin­ about the type of mining operation he Thursday, February 17, 1983 will conduct. ues to rise. As my colleagues are well Mr. Speaker, conditions have signifi­ aware, an obligation of that size is • Mr. UDALL. Mr. Speaker. it has cantly changed since Congress enacted beyond the capacity of the average become my practice from time to time the Federal Coal Leasing Amendments Meals on Wheels program to pay. to list my votes in the House of Repre­ Act of 1976. The experience we have The law permits an organization to sentatives here in the CONGRESSIONAL gained from the last 6112 years indi­ apply for a reinstatement of its ex­ RECORD. I strongly believe that the cates that there are flaws in the 1976 emption from FICA taxes with 2 people of Arizona have a right to know years' advance notice if the waiver has where I stand on the issues decided by act which must be addressed to insure the House, and I have found that that our Federal coal reserves will be been in effect for 8 years. But even if produced efficiently and in an orderly Meals on Wheels were granted an ex­ printing my. record here is the best manner. I urge my colleagues to join emption now, it would still owe the way to provide that information. me in the enactment of the amend­ same amount of money in back taxes. This is not an all-inclusive list. I ments I offer because I believe they I do not subscribe to the argument have omitted noncontroversial votes that any taxpayer who receives incor­ such as quorum calls, motions to re­ will make coal production less compli­ solve into the Committee of the Whole cated and will add some much needed rect tax advice from a private source flexibility to the 1976 amendments.• should not be obligated to pay for mis­ House, and motions to approve the takes based on that bad advice. How­ Journal of the previous day. ever, this is a unique case. Meals on The descriptions are necessarily A BILL TO ASSIST MEALS ON Wheels is a charitable organization somewhat short, and I am sure that WHEE~ OF MONTEREY which provides vital assistance to some of my constituents will have ad­ COUNTY homebound senior citizens. It could ditional questions about the issues de­ have, had it chosen, avoided obligation scribed here. So I invite them to write HON. LEON E. PANETIA for these tax payments, and it will me for specifics. or to visit my district almost certainly have to shut down if office at 300 North Main in Tucson or OF CALIFORNIA 1419 N. 3d Street. Suite 103, in Phoe­ IN THE HOUSE OF REPRESENTATIVES it does not receive an exemption. I be­ lieve the Congress would be fully Justi­ nix. Thursday, February 17, 1983 fied in relieving Meals on Wheels of The list is arranged as follows: e Mr. PANETTA. Mr. Speaker, I am Monterey County of any obligation for KEY today introducing legislation designed the past FICA tax payments and pro­ 1. Official rollcall number; to assist the Meals on Wheels organi­ viding it with the exemption to which 2. Number of the bill or resolution; zation of Monterey County in Califor­ it is entitled as a nonprofit organiza­ 3. Title of the bill or resolution; nia. This organization, which has dis­ tion. 4. A description of issue being voted on; 5. The date of the action; pensed nutritional services to home­ My bill provides that exemption and 6. My vote, in the form Y=yes, N=no, and bound senior citizens in Monterey relieves the organization of its FICA NV =not voting. County for 10 years, has, because of tax obligation. It is my hope that we 7. The vote of the entire Arizona delega­ incorrect tax advice, found itself owing can act swiftly on this measure to end tion, in the form ; 2552 EXTENSIONS OF REMARKS February 17, 1983 8. An indication whether the motion or Energy Polley and Conservation Act that provides oil companies with a lim­ 1981. Passage of the bill to expand 10 dem­ 9. The total vote. ited antitrust defense in sharing supply in­ onstration programs providing federal 37. H.R. 5708. National Housing Act Ex­ formation with the International Energy Judges pretrial services for determining a tension. Motion to suspend the rules and Agency. Adopted 211-163: Y, March 23. until June l, 1982, the provision to PL 94- Trails System Act by designating three new 38. S. 2254. Federal Flexible and Com­ 163 that gives oil companies a limited anti­ national scenic trails and authorizing study pressed Work Schedules. Motion to suspend trust defense so they can share supply in­ of six additional routes. Passed 389-6: Y <4- the rules and pass the bill to extend for four formation with the International Energy 0-0), May 11. months flexible work schedules for federal Agency. Passed 374-3: Y<3-0-l>, April 1. 66. H. Con. Res. 322. United Nations and employees. Motion agreed to 361-33: Y, March Dams Act. Adoption of the rule , Dams Act. Amendment to require local sessed contribution to the U.N. or the spe­ March 24. beneficiaries of federal irrigation dams to cialized agency in question. Motion agreed 42. H. Res. 413. House Chaplain. Adoption share in the cost of repairs authorized to 401-3: Y <4-0-0), May 12. of the resolution to state the House's belief under the bill. Adopted 212-140: N<0-4-0), 67. H.R. 5922. Urgent Supplemental Ap­ that its establishment of a chaplaincy is an April 29. propriations, Fiscal 1982. Motion that the appropriate and constitutional exercise of 54. H.R. 3208. Reclamation Safety of House resolve itsell into the Committee of its powers, to express its concern over the Dams Act. Passage of the bill to amend the the Whole for consideration of the bill to March 9 decision of a three-Judge panel of Reclamation Safety of Dams Act of 1978 to provide $4,868,934,000 in net new budget au­ the U.S. Appeals Court of the District of increase from $100 million to $650 million thority for fiscal 1982. Motton agreed to Columbia in the case of Jon Garth Murray the authorization for repairs to federally 385-12: Y <4-0-0), May 12. et al v. Angela Marie Buchanan et al, and to built dams and to require those who benefit 68. H.R. 5922. Urgent Supplemental Ap­ instruct counsel for the House and its chap­ from the dams to share in the repair costs. propriations, Fiscal 1982. Amendment to lain to petition the full appeals court for an Passed 335-9: Y<4-0-0), April 29. provide $1 billion to the Department of en bane hearing in order to seek dismissal of 55. H.R. 4613. Debt Collection Act of 1982. Housing and Urban Development for mort­ that case. Adopted 388-0: Y< 4-0-0>, March Motion to suspend the rules and pass the gage interest subsidy payments to home­ 30. bill to increase the efficiency of government buyers with family income not exceeding 43. H.J. Res. 410. Dutch-American Friend­ debt collections. Motion agreed to 402-3: 130 percent of the median income for their ship Day. Passage of the Joint resolution to Y<4-0-0), May 5. area. Adopted 343-67: Y, ments. Adoption of the rules propriation, Fiscal 1982. Amendment to pro­ March 30. providing for House floor consideration of hibit any expenditure of funds under the 44. H.J. Res. 447. National Day of Reflec­ the bill to amend the law governing farm­ housing section of the bill if such expendi­ tion. Passage of the Joint resolution to au­ ers' use of irrigation water from federal rec­ ture would violate a 1978 law on the Health Administration the author­ amendment to authorize expenditures from rule providing for House floor ity to enforce safety standards on surface the House contingent fund for calendar consideration of the bill to provide mining of stone, gravel, clay and phosphate, year 1982 of a total of $39,605,273 for inves­ $4,868,934,000 in net budget authority for rather than transferring Jurisdiction to the tigations and studies to be conducted by the fiscal 1982. Motton agreed to 240-158: Y<3- Mine Safety and Health Administration as 23 House committees other than the Budget l-0), May 6. provided in the bill. Rejected 186-220: Y<4- and Appropriations committees and for 59. H.R. 5922. Urgent Supplemental AP­ 0-0>. May 12. computer services. Adopted 416-0: Y<4-0-0), propriations, Fiscal 1982. Adoption of the 72. H.R. 5890. NASA Authorization. March 31. rule providing for House floor Amendment to reduce the aeronautics por­ 47. H. Res. 378. House Committee Funds. consideration of the bill to provide tion of the National Aeronautics and Space Motion to recommit the resolution to the $4,868,934,000 in net new budget authority Administration authorization by $34.4 mil­ House Administration Committee without for fiscal 1982 and waiving points of order lion. Rejected 169-204: NV<2-0-2>, May 13. instructions. Motion rejected 148-270: N<2- against certain provisions. Adopted 338-54: 73. H.R. 5890. NASA Authorization. 2-0), March 31. Y<3-l-0), May 6. Amendment to bar the authorization of 48. H. Res. 378. House Committee Funds. 60. H.R. 5539. Reclamation Law Amend­ funds that would violate the law requiring a balanced budget. Rejected penditures from the House contingent fund numbering 18 persons or more who use irri­ 121-248: N<2-l-l>, May 13. for calendar year 1982 of a total of gation water from federal reclamation 74. H.R. 5890. NASA Authorization. Pas­ $39,605,273 for investigations and studies to projects pay "full cost" for all such water, sage of the bill to authorize $6,647,300,000 be conducted by the 23 House committees according to a new formula in the bill. , May 13. Adopted 282-132: Y<3-1-0), March 31. land owned by such corporations.> Adopted 75. H.R. 6068. Intelligence Agencies Au­ 49. S. Con Res. 78. Easter Recess. Adop­ 220-160: N <0-3-1>, May 6. thorizations, Fiscal 1983. Passage of the bill tion of the concurrent resolution to provide 61. H.R. 5539. Reclamation Law Amend­ to authorize secret amounts in fiscal 1983 an adjournment of the Senate from the ments. Passage of the bill to amend the law for operations of U.S. intelligence agencies. close of business on April 1 or 2 until noon governing farmers' use of irrigation water Passed 357-23: Y<4-0-0>, May 19. on April 13, and for an adjournment of the from federal reclamation projects. Passed 76. H.R. 5842. National Science Founda­ House from the close of business on April 6 228-117: Y <3-0-1>, May 6. tion Authorization. Amendment to cut $30 until noon on April 20. Adopted 209-173: 63. H.R. 6294. Housing Assistance Authori­ million from the National Science Founda­ Y, April 1. zation. Motion to suspend the rules and pass tion authorization for fiscal 1983. Adopted 50. H.R. 5789. International Energy the bill to provide a supplemental authori­ 194-191: N<3-l-O>, May 19. Agency Antitrust Exemption Extension. zation to stimulate sales and production of 77. H.R. 5842. National Science Founda­ Substitute amendment to limit to 60 days single-family housing. Motion agreed to tion Authorization. Amendment to bar the the extension of a provision of the 1975 349-55: Y <1-2-1>, May 11. authorization of funds that would violate February 17, 1983 EXTENSIONS OF REMARKS 2553 the law , May 19. Reagan's rose-colored glasses, and challenges the Reagan record. is facing large deficits and interest rates are 78. H.R. 5842. National Science Founda­ still too high. And we're told all of this is tion Authorization. Amendment to the Mr. Berry found that things are not the result of an economic program put into Peyser, D-N.Y., substitute to cut $30 million nearly as positive as Mr. Reagan be­ place by our administration and which, for from the National Science Foundation au­ lieves, and that many of the achieve­ obvious reason, is called Reaganomics. thorization for fiscal 1983. Rejected 189-203: ments of Reaganomics were vastly I know some will say I'm being defensive N<3-l-0), May 19. overstated. Mr. Reagan likes to argue but I'll risk that, because in the wee~ 79. H.R. 5842. National Science Founda­ ahead decisions are going to be made here tion Authorization. Substitute to add $20 that he inherited a falling economy and rising deficits; Mr. Berry accurate­ in Washington that will have a bearing on million for science and engineering educa­ whether unemployment continues to go tion to the National Science Foundation au­ ly notes that many economic indica­ down and the economy continues to turn thorization for fiscal 1983. Rejected 203-188: tors have worsened under the leader­ up. You will help determine some of these Y, May 19. ship of President Reagan and his eco­ decisions because public opinion does influ­ 80. H.R. 5842. National Science Founda­ nomic advisers. ence government. Therefore, you must have tion Authorization. Passage of the bill to au­ Let us, if only briefly in this national a clear fix on the facts, the economic reali­ thorize $1,085,000,000 in fiscal 1982 and debate on budget and fiscal policy, put ties. $1,089,481,000 in fiscal 1983 for the National Thomas Jefferson said, "If the people Science Foundation. Passed 282-111: Y<2-2- aside glibness and rhetorical rubbage and just look at the facts. Mr. Berry know the truth, they'll never make a mis­ 0>. May 19. take." 81. H.R. 5726. National Bureau of Stand­ fortunately has provided us with the So let's start with some dates. Back in ards Authorization. Amendments to the means of doing just that. 1979 inflation was rising, unemployment Walker, R-Pa., amendments to reduce the National Bureau of Standards authorization R.liGAK'S WORLD v. Tm!: REAL 010-HE LErr was increasing, and by 1980 we were in a re­ approved by the Science and Technology OUT A F'Ew FAcrs IN HIS DEFENSE 01" cession. <2> Committee by $6.228 million. Adopted 195- REAGANOllICS <2> The National Bureau of Economic Re­ 191: Y. later said the en­ Technology and Innovation in fiscal 1983. aerobic exercise. But we seem to be stuck suing recovery continued until July 1981, Passed 249-131: Y<2-2-0), May 19. with it. With every anchorman on the when a separate and distinct recession 84. S. 1230. Olympic Coins. Substitute to evening news, a goodly share of political began. authorize the minting of three coins com­ pundits, and more than a few politicos using Unemployment had reached such a point memorating the 1984 Los Angeles Olympic it, it has a good chance of becoming stand­ in the last half of 1980 that I referred to it Games to be sold domestically by the Treas­ ard Americana. as a depression. <3> ury and overseas by a private marketing or­ There wouldn't be anything wrong with <3> Economist Alan Greenspan, CEA ganization. Adopted 302-84: Y<4-0-0), May that. except that it's used as a term for chairman in the Ford administration and an 20. something that's supposed to have failed. occasional adviser to Reagan, was traveling 85. H.R. 6267. Net Worth Guarantee Act. with Reagan at the time he made his re­ Substitute to authorize the Federal Savings Has Reaganomics failed? Judgments marks in Columbus, Ohio. Greenspan dis­ and Loan Insurance Corporation to provide di,ffer. The adminiatration forecast in Febru­ cussed the difference of magnitude between capital BMistance to qualified lending insti­ aT11 1981 that Reaganomics would raise the depression and recessions and said the 1980 tutions through the purchase of income 1982 grosa national product to $1,560 billion episode was clearly one of the latter. capital certificates. Rejected 155-209: N<3-l­ fin comtant 1972 doUaraJ, cut the unem­ I was criticized for that by technical­ O>. May 20.e plovment rate to 7 percent bJ1 the fourth minded people who said it was only a reces­ quarter of 1982 and reduce in,/lation to a 7.2 sion. But you'll have to forgive me. I was percent rate during 1982. Economic growth campaigning in Flint, Mich., where the un­ SE'ITING THE RECORD and domestic spending cuts would balance employment rate was already 20 percent; in STRAIGHT ON "REAGANOMICS" the budget in 1984. Detroit it was 18 percent, and across the La.at 11ear real GNP, the nation'• total line in Ohio, steel mills were closing. <4> HON. GEORGE MILLER output of goods and sennces, turned out to <4> In December, 1982, the unemployment be about $1,476, or 5.4 percent less than fore­ rate in the Detroit metropolitan area was 01" CALil"OIUflA cast. At the end of 1982 real GNP was run­ still 17. 7 percent. In Fl.int, it was 22 percent. IN THE HOUSE OP' REPRESENTATIVES ning about 2.4 percent lower than when In an Indiana city, unemployment was 23 Thursday, February 17, 1983 Pruident Reagan took office. percent. Inflation was in double digits for Unemplovment in the fourth quarter was 1979 and '80 and reached 14 percent during • Mr. MILLER of California. Mr. 10. 7 percent, 3. 7 percentage points higher the 1980 campaign. <5> Speaker, as we establish a budget and than predicted, and about 3 points higher <5> In,/lation reached a peak in 1979, when fiscal policy for the next year, we will than in JanuaTJl 1981. consumer prices rose 13.3 percent. In 1980 review the successes and failures of However, a.tter the long recession, in,/la­ the figure was 12.4 percent, and in 1981, 8.9 the last 2 years of the experiment tion has dropped sub8tantiall11 more than percent. Much of that slowdown was the called Reaganomics. · predicted. Consumer prices rose only 3.9 per­ result of a sharp drop in the rate of increase cent last 11ear instead of the 7.2 percent fore­ in volatile food and energy prices. President Reagan looks around at cast. Interest rates went to 21.5 percent, and historic unemployment rates, millions The promised balanced budget for 1984 the housing industry was at a standstill. <6> of Americans without adequate food now Zooka likel11 to be $200 biUion in the <6> In JanuaT11 1981, the prime lending or medical care, crushing long-term in­ red-three timu bigger than any pre-Reagan rate at commercial banks peaked at 21.5 per­ terest rates, stagnant factories and deficit. cent. But blue chip corporations were still falling wages, and sees only hope. His So if you don't mind, I'm asking for equal iasuing long-term bonds at rates less than 13 latest vision of economic recovery due time-well, at least, for about the next five percent, and new home mortgage rates were to Reaganomics were offered up to the minutes. onl11 slightly higher. American people during his weekly We are, and have been for some ti.me, in a Hou.sing was not standing still, however. recession. Unemployment was running at New housing starts the month Reagan took radio broadcast on February 5. 10.8 percent as the year ended. But we of/ice were running at an annual rate of 1.6 In his usual fashion, Mr. Reagan al­ learned yesterday the welcome news that it miUion units, and had been moving up. In leged that Reaganomics has worked, dropped to 10.4 in January. And if you in­ December, 1982, housing starts were at a and that it will continue to work. But clude our men and women in the military as rate of 1.2 million. 2554 EXTENSIONS OF REMARKS February 17, 1983 Our administration opened up shop on as are all retail sales. Factory orders have May I point out, all of the good things I've Jan. 20, 1981. The prime interest was still begun to increase. One timber company I mentioned didn't begin until after our pro­ above 20 percent, inflation was 12.4 percent, know of, which a year ago today was com­ gram, Reaganomics, if you will, was put in and unemployment was 7 .3 percent. The pletely shut down, is now on two shifts a place. Prior to that everything had been a 1981 budget had already been put in place day, five days a week. Real wages are up for mess for three years or more. I wonder if by the previous administration and began the first time in three years. <11 > they'll still use that name when they've on Oct. 1, 1980. Now, there was nothing we <11> Average hourly earnings for produc­ found out it works. could do about that budget; it wasn't ours, tion and non-supervisory workers rose 0.8 Until next time, thanks for listening and although we did manage to squeeze out a percent in 1982 a.tter adjustment for the in­ God bless you.e few billion dollars through some manage­ crease in consumer prices. They had fallen ment changes. 3.1 percent, 4 percent and 1 percent in 1979, For the most part, however, we were en­ 1980 and 1981, respectively. On the other BRIEFING MATERIALS ON IN­ gaged in a struggle to get our budget pro­ hand, gross weekly earnings-which are also TEREST AND DIVIDEND WITH­ posals for 1982 adopted and the other part a.tfected by the number of hours worked-fell HOLDING of our economic recovery program, tax cuts 1.3 percent last year a.tter adjustment for in­ for all Americans to help stimulate the flation. economy. <7 > And the rate of personal savings is up, HON. NORMAN E. D' AMOURS <7> The president's "Program for Econom­ meaning more capital for investment. <12> OF NEW HAMPSHIRE ic Recovery" consisted offour parts, not Just <12> Personal saving was 6.4 percent of IN THE HOUSE OF REPRESENTATIVES two. Along with spending and tax cuts, it disposable personal income in 1981 and 6.5 also called for "prudent relief of federal reg­ percent in 1982. That compares with 5.9 per­ Thursday, February 17, 1983 ulatory burdens" and a steady reduction in cent in 1979 and 5.8 percent in 1980. e Mr. D'AMOURS. Mr. Speaker, last the growth of money and credit "from the However, the higher saving rate did not year, Congress, as part of the Tax 1980 levels to one-half those levels by 1986." necessarily mean more funds were available Most economists now agree that this tight for capital investment. Personal saving did Equity and Fiscal Responsibility Act money policy was the single most influential grow to $141.1 billion last year, up from of 1982 vate sector could draw on the bulk of person­ prior to their July 1, 1983, effective <8> During the first hall of 1981, interest al saving-as well as corporate saving-to fi­ date. This paper provides background rates did stay high but unemployment did nance business investment and housing con­ not increase. Rather, the unemployment rate struction. In 1982, financing the budget defi­ on the withholding issue and details stayed between 7.5 percent and 7.2 percent cit absorbed all personal saving and then some of the arguments in favor of re­ until September, when the slide into reces­ some. pealing withholdings: sion began in earnest. And, as I've already mentioned, "the lag­ BACKGROUND About this same time, our economic pro­ ging indicator," as it's called, unemploy­ Although the Congress had many times in gram, most of it, was passed, major reduc­ ment, just took its first drop, 10.8 to 10.4. A the past rejected withholding by decisive tions in the growth of spending and a 25 survey of business establishments shows margins, withholding at source was included percent cut in income tax rates to be phased somewhere around 300,000 more people in TEFRA on the basis that it would gener­ in over a three-year period. But none of this working. We have a long way to go; but ate substantial amounts of additional reve­ went into effect until Oct. 1, 1981. The first that's a start at least. nue l,700 workers are being called back to a ed an amendment which would have deleted <9> Only the personal income tax cuts newly modernized plant. Another plant will withholding from the bill. Because of the began then. The large business tax cuts were be calling back an additional 1,500 workers unique circumstances surrounding enact­ retroactive to January 1981, and some regu­ by late summer. In nearby Hazelwood, the ment of TEFRA, the House was not given latory reform had begun. More important, Ford plant was adding another entire shift an opportunity to vote on the issue of with­ with the administration's backing, the Fed­ and General Motors has announced it plans holding. eral Reserve had throughout the year been to call back more than 21,000 of the indefi­ Under the new law, virtually all payors of slowing growth of the money supply-the nite layoffs over the next few months. For interest and dividends will be required to major reason why interest rates remained so eight out of the last nine months, the lead­ deduct and withhold 10 percent when inter­ high and that the economy plunged into a ing economic indicators have been up. est or dividends are paid or credited to an recession. In the weeks ahead there"ll be debates as individual. However, withholding is not re­ Some administration officials say the Fed to what course we should follow. The choice quired if the taxpayer has filed an "exemp­ was responsible for the recession because it that will be offered is to turn away from our tion" certificate and has incurred a tax li­ did a poor job of managing the money economic recovery program and go back to ability of $600 or less in the preceding year supply. Other economists, including CEA what was being done before.<13> <$1,000 on a joint return>. or who is 65 years Chairman Feldstein, believe that any seri­ <13> Reagan himself has made major or older and incurred a tax liability of ous effort to reduce inflation using mone­ modifications in Reaganomics. Pre8S!!d by $1,500 or less <$2,500 on a joint return> in tary policy inevitably would have produced Congress last year, he agreed to and later the preceding year. In addition, withholding a recession. tlobbied hard for a tax biU that took back a is not required if an interest payment on an There was another 10 percent cut in the portion of the business cut&. passed a year annualized basis is $150 or less. income tax scheduled for this coming July. earlier. In addition, he has Ju.st proposed ad­ Now, what has happened in those 16 vancing scheduled Social Security tax in­ DISCUSSION months of Reaganomics? Well, with the creases and a set of "contingency" taxes for Enactment of withholding of taxes on in­ help of the Federal Reserve Board, inflation 1985 if the deficit remains as large as expect­ terest and dividends was a mistake. The ob­ has dropped to only 3.9 percent for all of ed and other conditions are met. By 1988, by jectives of increased taxpayer compliance 1982, the lowest it's been in 10 years. Inter­ administration calculations, the total feder­ and additional revenue can be substantially est rates are about half what they were. <10> al tax burden would be equal to 21.6 percent achieved without the imposition of this <10> Long-term interest rates are more im­ of GNP, only a shade lower than 21.9 per­ costly, complicated and confusing scheme. portant economically than short-term rates cent level of 1981. Withholding is not necessary to increase because they have a much greater impact on Reagan's latest spending plans would taxpayer compliance. According to the investment decisions. While the prime rate leave federal outlays at 23.2 percent of GNP Treasury, nearly 89 percent of taxpayers is now 11 percent, compared to about 19 per­ in 1988, compared to 22.4 percent in 1980 pay the rates they owe on savings and in­ cent in October 1981, those blue chip corpo­ and 22.9 percent in 1981. vestment income. Moreover, a 1981 IRS rate bond rates are still at 12 percent, down The administration has also modified its study showed that taxpayers voluntarily re­ only about 3.5 percentage points since that goals for controlling growth of the money ported 97 percent of interest and dividend time. supply, and now recommends that the Fed income where information returns

were filed with the IRS and the Serv­ in housing starts, automobile sales are up, tially sought. ice matched the information with tax re- February 17, 1983 EXTENSIONS OF REMARKS 2555 turns. Simply stated, where information re­ terest. Extrapolating from the Peat, Mar­ effort to repeal the provisions of TEFRA turns are filed, compliance approaches 100 wick, Mitchell & Co. study, this would mean which impose withholding at source of tax percent. that the costs to the commercial banking in­ on interest and dividend payments.e The IRS has reported that it is currently dustry alone could exceed the total tax gap matching 99% of the information returns for interest. ORGANIZATIONS SUPPORTING THE REPEAL OF which are filed with the service on magnetic Witholding is complicated and con.fusing. WITHHOLDING AT SoURCE OF TAXES ON IN­ tape. In fact, IRS Commissioner Egger testi­ The law provides for an exemption system TEREST AND DIVIDENDS fied before the House Ways and Means whereby certain elderly taxpayers and per­ American Bankers Association. Committee in May, 1982: "If the informa­ sons with low tax liability can file an ex­ tion is sent on magnetic media, emption form. However, it will be up to each Credit Union National Association. we are generally able to match 100 percent individual to keep track of the exemption General Federation of Women's Clubs. of this information ..." In addition, it is status of each source of dividend and inter­ Independent Bankers Association of currently matching about 85% of the est income and notify payors of changes in America. "paper" 1099s filed with the IRS. Moreover, status. Moreover, in order to claim an ex­ Mortgage Bankers Association of America. the already "good" record of taxpayer com­ emption, a taxpayer will have to declare National Association of Federal Credit that he or she meets the age and tax liabil­ Unions. pliance may be substantially improved with­ National Association of Mutual Savings out imposing the costs and burdens of with­ ity requirements. This disclosure of sensi­ Banks. holding. For example, federal govenunent tive information about income and age will undoubtedly be an embarrassing invasion of National Association of Retired Credit securities have, up to now, been exempt Union People. from the reporting requirements that have privacy for many. Finally, and because the exemption is keyed to tax liability in the National Savings and Loan League. long been applicable to deposits and other Na':.ional Taxpayers Union. investments. Individuals hold $256 billion of past year, tax will be withheld from people such securities and a good portion of tax whose incomes decline in the current year Stockholders of America. Inc. such as retirees or people who lose their United States League of Savings Institu­ revenue lost in past years may well be tions. traced to the fact that the government itself jobs or become ill and can no longer work. did not issue 1099 forms on its own securi­ From the point of view of payors of inter­ ties. This is now changed. TEFRA contains est and dividends, the exemption system WAR ON RELIGION IN NAME OF provisions which broaden the categories of will create a blizzard of paperwork. It has payments subject to reporting counting firm Peat, Marwick, Mitchell & Legislation has been introduced in both The founders of this nation, to para­ Co. estimates that start-up costs will be in the House and Senate to repeal withhold­ phrase Justice William 0. Douglas, were "a the range of $200,000 to $400,000 for each ing. In the House, over 70 separate bills religious people whose institutions presup­ institution. The "float" provided by the reg­ have been introduced, including H.R. 500, posed the existence of a Supreme Being." ulations is expected to compensate institu­ principally sponsored by Representative From the first settlement in 1607 to the tions for less than 10 percent of these costs, Norman E. D'Amours . which has founding of the Republic, until 1962 there according to the same survey. The balance 218 cosponsors. In the Senate, 8 bills have existed throughout our national and com­ of these costs will necessarily be reflected in been introduced, including S. 222, sponsored munity life a profound belief in God, in the reduced federal income taxes resulting from by Senator Robert W. Kasten CR-Wis.>. efficacy of private and public prayer, and in their impact on earnings and profits, higher which has 36 cosponsors, and S. 39, spon­ a shared morality based on the teachings of interest rates, and increased service charges. sored by Senator David Boren CD-Okla.), the Old and New Testaments. In his address This cost should be tested against the ben­ which is cosponsored by 17 other Senators. recently to the National Religious Broad­ efit to be gained from withholding. In his In the private sectors, the withholding casters convention, President Reagan recog­ testimony before the House Ways and repeal effort has the active support of nized this in proclaiming 1983 "the year of Means Committee in May, 1982, IRS Com­ almost every financial trade group, share­ the Bible." missioner Egger stated that the "tax gap" holder representatives and associations rep­ Yet in the last two decades, a small minor­ for interest and dividend payments for 1981 resenting retired groups. Attached is a list ity has forced through the federal courts a was $8.2 billion, of which $4.1 billion was in- of the associations which are supporting the tortured view of the First Amendment's es- 2556 EXTENSIONS OF REMARKS February 17, 1983 tablishment-of-religion clause-a view that from the Bible in class. The Congress and President L6pez Portillo of Mexico accuses bears no resemblance to the convictions of the president designate a national day of the Mexican banks in cooperation with for­ the Founding Fathers, nor to the past 376 prayer each year, yet the schools cannot eign banks of "heading, advising and sup­ years of history and custom. Ever since give notice of such a joint action of the leg­ porting" a capital flight from Mexico. 1962, successive decisions on that clause islative and executive branches of govern­ "They have looted us. They will not loot us have so egregiously departed from clearly ment. again." His government then seized all pri­ defined norms of constitutional interpreta­ I believe that the First Amendment was vate banks, including $12 billion in dollar­ tion that Sen. Daniel P. Moynihan, N.Y., all the guarantee of religious liberty that we denominated accounts owned by Mexican has termed them "an intellectual scandal." needed until an activist Supreme Court tor­ and U.S. citizens, and forcibly converted the Under the incessant hammering of such or­ tured its clear-cut meaning. We often hear dollar deposits into debased and depreciated ganizations as the American Civil Liberties of the "constitutionally mandated separa­ pesos. Union, religious freedom is no longer consid­ tion of church and state," but that phrase Many economists are fearful that the ered a paramount freedom, but has become appears nowhere in the Constitution or Bill international debt crisis is more than the restricted and proscribed by successive court of Rights. It was written by Thomas Jeffer­ bankers can handle. They liken the global decisions. We have only to consider a few son in 1802, in a letter to the Danbury Bap­ debt burden to a pyramid that is weak, get­ examples to understand the enormity of the tist Association, which had aroused his ire ting weaker and heading for collapse. They problem: by criticizing some of his policies. Three draw ominous analogies with the financial At public expense, the University of Mis­ years later, Jefferson clarified his position crisis of the early 1930s that greatly contrib­ souri provides facilities for student groups in his second inaugural address: "In matters uted to turning an economic slump into the advocating communism and homosexuality. of religion, I have considered that its free Great Depression. Other economists, espe­ But the university denies similar accommo­ exercise is placed by the Constitution inde­ cially in government, reject such pessimism. dations to Christian students. The federal pendent of the powers of the general gov­ They argue that the system is strong district judge in the case agreed with the ernment. I have therefore undertaken on no enough to weather a default of several university's contention that, under the Con­ occasion to prescribe the religious exercises major debtors, that the creditor banks have stitution, freedom of religion was a restrict­ suited to it but have left them, as the Con­ adequate reserves to cover any serious de­ ed right. Fortunately, even the Supreme stitution found them, under the direction fault, and that central banks would protect Court could not accept that reasoning, and and discipline of the church or state au­ any individual bank from failing and there­ ordered the accommodation of the Chris­ thorities." by avoid a panic on the international mar­ tian student group. According to the Gallup Poll, 94 percent kets. They also point to the International Yet, within two weeks of that decision, of the American people believe in God. Monetary Fund-the lender of last resort­ the Supreme Court refused to overturn a Without question, those who believe must which can be expected to bail out countries state ruling that denied the right of high give the 6 percent who do not believe the in payment difficulties. They speak of a school students in Guilderland, N.Y., to be freedom to speak, write, broadcast and dis­ "safety net" that is protecting the world fi­ accommodated for voluntary religious ac­ agree. But I do not think that the believing nancial structure from falling apart. tivities after school-even though all other majority has an obligation to the disbeliev­ volunteer student clubs were provided space ing minority to dismantle our public affir­ THE SAFETY NET by the school. mation of faith in God. Nor do we owe this 6 In fact, the safety net may be very com­ In my own community of Virginia Beach, percent minority an absolute veto over a forting to overextended debtors and their I was shocked to find that the public com­ constitutional amendment-for which Presi­ lenders, but its very existence may have in­ munity college system proposed religious dent Reagan has recently reaffirmed his vited the overextension in the first place by guidelines that forbade students to speak of support-that would restore our freedom to encouraging bankers to loan more money their religion on campus, and forced them address Almighty God in our schools and than their foreign customers were able to to submit all religious materials for prior re­ public places.e repay. No matter how much money the straint and censorship before they would be banks would lend to "developing" coun­ allowed to distribute such literature volun­ tries-sometimes recklessly and foollshly­ tarily on their campus. THE WORLD DEBT CRISIS there was always the IMF to pick up the Worse than this, a federal court in Florida pieces. Surely, IMF and government offi­ has ruled that it is unconstitutional for cials are convinced that the world financial s HON. LARRY McDONALD schools to show films depicting religious OF GEORGIA system needs more such safety nets that events in American history. Florida students IN THE HOUSE OF REPRESENTATIVES would prevent it from plunging into a seri­ cannot view a film about the landing at ous crisis. But all such devices constructed Jamestown because a cross was planted on Thursday, February 17, 1983 by governments merely cushion the fall, the shore. The first Thanksgiving is pro­ e Mr. McDONALD. Mr. Speaker, the they do not prevent it. scribed because the Pilgrims were thanking The safety-net advocates like to point to God. Students won't see George Washing­ economic and banking structure of the the lack of safeguards in 1931 when, in the ton kneeling in prayer at Valley Forge. United States and the world is moving midst of financial disorder, Austria, then Citing federal precedent, the attorney toward collapse as a result of world Germany, and finally Great Britain default­ general of Tennessee has ruled that high debt. An understanding of this issue is, ed in their payment obligations. In many re­ school football teams may not engage in therefore, critical. Hence, I take this spects the situation then was similar to that group prayer prior to their games. And by opportunity to insert the following ar­ of today. Under the impact of a great flood federal court order, the Lubbock, Texas, ticle by Dr. Hans Sennholz into the of bank credit generated by easy-money school district has forbidden religious clubs RECORD: policies of the Federal Reserve System in from conducting any activity whatsoever on 1924 and thereafter, bank credit was super­ high school campuses. The reasoning is that THE WORLD DEBT CRISIS abundant in New York. High-yield foreign compulsory education laws force students to bonds were in great demand, which led come to school, and therefore provide an au­ "A small debt creates a debtor, a large many New York banks to extend loans to dience for the clubs that would not other­ debt, an enemy." If this old proverb is aP­ foreign borrowers, especially German states wise be available. plied to the international situation, the and municipalities. The funds were often In short, the schools have gone from a po­ United States and other industrial countries spent on current consumption. called social sition of neutrality on religion to open hos­ have made many new enemies in recent service, that permitted the people to live tility. years. The external debt of third-world better today at the expense of tommorrow. With these rulings, however, comes confu­ countries and communist countries to credi­ There was no safety net, no international sion. The Supreme Court opens its sessions tors in the United States and Europe has cooperation or institution that would come with the phrase "God save this honorable soared from less than $100 billion in 1970 to to the rescue of a small Austrian bank, the court." Yet that sentence would be uncon­ some $850 billion in 1982. At least 26 coun­ Credit-Anstalt, when foreign funds were stitutional if uttered in a school assembly tries are in default and many more may fail suddenly withdrawn. The panic gained by the principal. The court has the Ten in the coming years. strength and spread from Austria to Germa­ Commandments engraved in the walls of its The bad debtors now are lashing at their ny, to London, and finally New York. chambers, yet it has ruled that the place­ creditors, the chief economic villains: the Surely, prompt banking cooperation might ment of the Ten Commandments on school United States and Western Europe. "Much have avoided the debtor collapse, but it walls is unconstitutional. The chief Justice of Brazil's inflation is caused by chaos in could not possibly correct the great harm of the United States holds a Bible during the international economy," says Tancredo inflicted by the credit expansion. Billion­ the swearing-in of the president, yet it is un­ Neves of Brazil, "and that chaos is the fault dollar loan funds had been squandered, the constitutional for school teachers to read of the rich countries who are our creditors." capital markets had been disarranged, February 17, 1983 EXTENSIONS OF REMARKS 2557 prices and production disorganized. The people. They include such devices as restric­ popular subsidy and transfer programs, con­ seeds had been sown for a world-wide de­ tions of imports, promotions of exports, tax suming income and wealth at unprecedent­ pression. increases, and so on. Rarely, if ever, does ed rates. The foreign credits raised the THE CURRENT SITUATION IMF recommend a reduction in the scope levels of living of the debtors, especially What of the situation today? The credit and function of government. government officials and their political expansion of the 1970s dwarfs that of the THE U.S. DOLLAR STANDARD beneficiaries, while they lowered those of 1920s. It had its beginning in the United The U.S. dollar as the world standard cur­ the people of creditor countries. But the States and then spread like wildfire to all rency occupies the central IMF position to shock of default is signaling the end of the capital markets in Western Europe and which all other currencies must adjust. But wealth transfer process from creditors to Japan. It flooded the world with easy credit this central dollar position grants an omi­ debtors, from capitalistic countries to social­ that amounted to hundreds of billions of nous privilege to the U.S. government as the istic and communistic countries. The con­ dollars rather than a few as during the primary supplier of world currency. It per­ sumption of capitalist wealth is finally 1920s. It led to the default of dozens of sov­ mits the U.S. to inflate the dollar with a drawing to a close. Consequently the levels ereign countries, which wasted the funds on certain degree of immunity and to suffer of living in debtor countries are tumbling, grandiose political schemes designed to glo­ painless balance-of-payment deficits because transfer programs are failing, and the politi­ rify government and make socialism work. millions of people all over the world are cal forces that depend on the economic But the present situation differs from the eager to accept and hold U.S. dollars. The transfer are falling into disrepute. Politi­ 1931 crisis in one important respect. In the rising quantity of U.S. dollars gushing from cians are calling it a "liquidity crisis"; in re­ 1920s and early 1930s the world money con­ Washington is met by a rising world ality, it is a shock which spendthrifts usual­ sisted of gold. The world was on a gold demand, which keeps the dollar deprecia­ ly suffer when called upon to make pay­ standard and all international payments tion at a minimum. ment. were made in gold. Today, the world is on a But even this pleasant privilege that per­ SEEKING SECURITY ABROAD U.S. dollar standard and most international mits the American people to enjoy foreign Many debtor countries received large payments and debts are settled in dollars. imports without paying for them with amounts of foreign credits that could not be While it may be very difficult to construct a American goods, is subject to certain limits. invested productively under the given condi­ safety net of gold, it is rather simple for the When, despite the privilege, the U.S. gov­ tions. Where governments control and regu­ U.S. government in cooperation with other ernment manages to inflate the dollar at late every phase of economic life there are governments to weave safety nets of paper rates higher than the going world rate and few opportunities for individual investment. money. Governments cannot manufacture thereby floods creditor countries with dol­ Where governments inflate and depreciate gold; they can print ever larger quantities of lars, the dollar exchange rate tends to fall their currencies at horrendous rates, the paper money. But how safe are such paper in international money markets, inflicting people seek escape from destruction by nets? serious losses on countless dollar holders. hoarding foreign currencies that are likely THE INTERNATIONAL MONETARY YUND Finally, when these dollar losses become un­ to depreciate at lesser rates. They are bearable, they may trigger a world-wide hoarding U.S. dollars or investing them Most international bankers and govern­ flight from the dollar, which would signal abroad. ment econoinists look upon the IMF as the the end of the world dollar standard and Millions of Mexicans, Argentineans, Chil­ primary net that was woven at Bretton the beginning of hyper-inflation at home. eans, Uruguayans, and many others, found Woods, New Hampshire, in 1944. Its stated The dollar panics of 1978 and 1979, when U.S. dollars and U.S. investments extremely objectives are to promote international President Carter had to raise $30 billion of advantageous. They rushed to their banks monetary cooperation and currency stabili­ hard foreign currency in support of the loaded with dollar credits and bought U.S. zation, which means the promotion of inter­ sinking dollar, revealed the very limit to dollars for depreciating pesos. The banks national government cooperation in matters which the dollar inflation could be carried acted as turntables, bringing dollars in and of money management. The amount any without upsetting the world monetary lending them to people who would take government can borrow from IMF is in pro­ order. U.S. monetary policy has been more them back to the U.S. Many a Florida condo portion to the amount it has deposited, is owned by citizens of bankrupt debtor which in turn is determined by the coun­ restrained and conformable to IMF stand­ try's world trade, output, and the like. ards ever since. countries. Their politicians call it a "liquidi­ THE WORLD IS GASPING FOR LIQUIDITY ty crisis"; in reality it is a flight of private Debtor governments usually favor a large capital from governments that would con­ "quota," which they may establish by con­ Third World debt has more than quintu­ sume and destroy it. tributing primarily their own weak curren­ pled in a decade, half of which is owed to The soaring inflation of the 1970s natural­ cies and then draw hard currencies, such as private banks. Repayments falling due in ly raised interest rates which together with U.S. dollars, German marks and Japanese many cases exceed the debtor's foreign ex­ the rise in total indebtedness raised the in­ yen. They are pressing for significant in­ change earnings. In 1982 alone some $30 bil­ terest burden. In the debtor countries a creases of their quotas so that they can lion in payments falling due had to be re­ large portion of income now goes to pay in­ borrow more and spend more. Many want scheduled, which is three times the amount terest on foreign debt and to roll over old their quotas trebled; some industrial coun­ that were not paid on time in 1981. Cash­ debt at rising interest rates. Interest pay­ tries merely favor a 50 percent rise. The become worse in 1983 and 1984. without the injection of new loans are Reagan Administration is considering a $25 The 1970s witnessed the greatest credit squeezing the life out of borrowers. To meet billion emergency fund, administered by the boom the world has even seen. There had pressing payment obligations many resorted IMF, to help countries with cash crises. been some credit expansion before August to short-term borrowing, which is squeezing For the most part, newly created central 15, 1971, when President Nixon unilaterally the debtors harder still. Many countries are bank funds are used in IMF transactions, abolished the last vestiges of the gold stand­ de facto bankrupt-Mexico, Argentina, which makes the Fund an exchange for self­ ard. Credit expansion accelerated dramati­ Chile, Costa Rica, Bolivia, Poland, Rumania created and deteriorating currency and an cally thereafter when the U.S. government and several African states. Others may fail international engine of world-wide inflation flooded the world with U.S. dollars. Central to make interest payment when it falls and currency depreciation. It is forever pur­ bank reserves now consisting primarily of due-Peru, Venezuela, Yugoslavia and, most suing the spurious notion that the policy of paper dollars expanded from $92 billion in important, Brazil. They all blame the liquid­ inflation can be made to last indefinitely 1970 to more than $800 billion in 1981. Com­ ity crisis; they should decry their own poli­ through cooperation of all member govern­ mercial bank credit expanded two or three cies that would circumvent reason and inex­ ments. It acts like a governmental coopera­ times faster than before. The Eurodollar orable economic law. tive with 146 members that tries to coordi­ market, which recycled the flood of petro­ nate the inflationary policies of its mem­ dollar deposits to debtors all over the globe, THE CALL FOR "REACTIVATION" bers. grew from some $100 billion in 1970 to The international banking system is under Governments that inflate and depreciate nearly $2 trillion today. All these credits great strain. There is little hope that many their own currencies at reckless rates and, fueled an inflation the likes of which the foreign debtors will ever repay their debt. therefore. face international payment diffi­ world has never seen before. The abundance Creditor wealth has been wasted in public culties, such as Mexico in recent months, of credit and bargain interest rates below in­ works and social service, lost on countless are rescued immediately with billion dollar flation rates seduced many governments, schemes of government welfare and devel­ loans. At the same time IMF imposes "con­ companies and individuals to live beyond opment, which were to create a better world ditionalities" that are supposed to correct their means until they could borrow no through political action or outright social­ the causes of the payment difficulties. But more. ism. The experiment, which is costing the the conditionalities are usually taken from With the help of foreign loans and domes­ capitalist countries hundreds of billions of the armory of government control over the tic credits many governments indulged in dollars, is failing visibly as poverty and 2558 EXTENSIONS OF REMARKS February 17, 1983 misery are descending on the debtor coun­ standard. It would shun the temptations such all encompassing human right. tries. and privileges of a world dollar standard Freedom from discrimination on the But spendthrift politicians rarely learn and lead the way by bringing its own house basis of race, national origin, or reli­ from their own experience. One political in order. It would restore individual freedom party may replace another, one junta may in money and banking by repealing the gion is another. The language of the ovethrow another, but the economic policies myriad of laws and regulations that engulf equal rights amendment is consistent may remain unchanged because the notions the financial institutions. Instead of purg­ with this scheme. It simply provides and doctrines that are breeding the policies ing gold from the financial system it would for the implementation of a very basic are not changing. The bad debtors of the encourage the use of gold in all exchanges principle-that governments at all world now are calling for "reactivation" and clear the way for a parallel standard of levels treat women and men as individ­ which is more of the same. They want "rein­ dollars and gold. uals having equal rights under the flation" on a global scale, to bail out govern­ If the U.S. government were a financial ments and companies wallowing in bad debt. leader toward monetary stability and eco­ law. Even U.S. politicians are talking about "re­ nomic prosperity it would set an example to Contrary to what some may believe, activation" through legislation that would the rest of the world by balancing its budget passage of the ERA will not lead to lower interest rates, create more credit, or this year and every year, and abstain from unisex bathrooms. force women into force the Federal Reserve System to stimu­ any further currency and credit expansion. combat. or discriminate against home­ late the economy through more dollar injec­ And once the dollar ceases to lose any more makers. What it will do is help elimi­ tions. purchasing power, not even 5 per cent, 3 per nate llmitations on job and salary op­ The wide road ahead leads to "activation," cent, or 1 per cent, it would be made re­ which in time will rekindle the economic deemable in gold. In short, politicians and portunities available to women boom and save many debtors through mone­ government officials would surrender their throughout the work force. It will tary depreciation. It is protected by many power over money and banking to the equalize rights for males and females safety nets designed to cushion the fall of people who would be free to choose. entering marriage. particularly with the most reckless debtors. But it is also a As a world leader the U.S. government respect to property, to each other, to downhill road on which inflation will accel­ would withstand the temptation to rekindle their children. and to third parties. It erate, the U.S. dollar will suffer worse the world paper boom through more infla­ will provide an impetus for recognizing panics and crises than in 1978 and 1979, and tion and credit expansion. It would refuse to the world economy will slowly disintegrate join the Third-World search for more bank the value of homemaker services, and and sink into permanent despair. credits, to build more safety nets for reck­ will encourage legislative action to The road to peace and prosperity points in less debtors and irresponsible lenders, grant protect women in divorce. the opposite d!rection. In the words of an more quotas or foreign aid to socialist and A constitutional amendment will 18th century French philosopher, Charles, communist countries, and cooperate in any strengthen the position of women de Montesquieu, "countries are well culti­ international scheme that would deny mon­ seeking income protection by prohibit­ vated, not as they are fertile, but as they etary freedom to individuals. It would with­ ing sex-based discrimination in insur­ are free." On the road to freedom govern­ draw from the International Monetary ment powers and functions must be reduced Fund and the World Bank, and cease to co­ ance, pensions. and retirement securi­ in every sphere of individual life, and politi­ operate with any government that seizes, ty programs that involve governmen­ cians be separated from the economic activi­ blocks, or confiscates American property. tal action. It will insure equal opportu­ ty of the people. Above all, the political ap­ As true leaders of the free world Ameri­ nities to all students in our Nation's paratus must be completely segregated from cans would have no need to lead-they public-sponsored schools, and will money and finances; the power over money would be content to set an example and guarantee that women and men are must be taken out of the hands of politi­ point the way.e accorded equal treatment and oppor­ cians and returned to the people. tunity in the Armed Forces on the ANY MAJOR NATION MAY LEAD THE RETURN TO THE CONTINUED NEED FOR AN basis of their individual skllls and FREEDOM EQUAL RIGHTS AMENDMENT abilities. Passage of the ERA will Any one of the principal countries can simply remove numerot1.s existing lead the way. It would immediately restore the individual freedom to choose any cur­ HON. TIMOTHY E. WIRTH State laws-many of them historical rency and medium of exchange, and remit hangovers-that still typecast men and OP' COLORADO women, and replace all remaining sex­ the freedom of contract in all monetary IN THE HOUSE OF REPRESENTATIVES matters. In a country racked by chronic in­ biased language with the following flation, such as Mexico, Argentina, and Thursday, February 17, 1983 language and basic premise. other Latin American states, financial sta­ • Mr. WIRTH. Mr. Speaker, I wish to Equality of rights under the law shall not bility would soon return through the devel­ reemphasize the continuing need for a be abridged by the United States or by any opment of a parallel standard of pesos and state on account of sex. world money, that is, U.S. dollars. If two or Federal equal rights amendment so more currencies are freely usable and ex­ that equal rights for all Americans can Colorado is one of the 17 States that changeable in all transactions, at free and finally become a reality. Measured by adopted its own ERA by amending its unhampered rates, the people will prefer any standard, gender lines have not constitution in 1972, and subsequently the most stable and reliable currency, which been erased in our society. Although rejected an attempt to repeal the in many countries would be the U.S. dollar. the State, local, and Federal govern­ amendment in 1976. The Colorado leg­ Thus, the legal parallel standard would ments may. act without the ERA to islature is also one of the first to have probably become a de facto dollar standard promote equal rights, the reality is in many parts of the world. ratified the national ERA. I have con­ A dollar standard in Mexico, Argentina, that without the amendment, govern­ sistently voted in accordance with the Chile, and Bolivia, would bring immense im­ ments at all these levels have not voice of the people-by supporting the provements to economic life and well-being. taken the steps necessary to end the extension of the ratification deadline; But the dollar standard would merely be an sex bias that continues to intrude by cosigning a letter to State legisla­ interim step on the road of monetary free­ upon the lives of women and men in ture in Unra.tified States; and by co­ dom. In time the dollar standard, which, this country. sponsoring both the initial ERA legis­ too, is a political standard managed by Within the limits of our Nation's lation and its subsequent reintroduc­ spendthrift politicians in Washington, Gonstitution, the system of laws in the would be found wanting and, therefore, be tion. replaced by the only natural standard, the United States is much like a patch­ I appeal to those of you as yet un­ gold standard. If people were free to choose work quilt: The rights of individuals in committed to an equal rights amend­ they would prefer non-political money, one State vary in some respects from ment to look again at the implications. honest money, the money of the ages, the rights of individuals in another. Statistics indicate an overwhelming which is gold. However. certain principles of freedom majority of Am.ericans in support of MONETARY STABILITY and individual dignity permeate our economic justice and equality for men If the U.S. were the leader toward world governmental system and have been and women under the law. The addi­ peace and prosperity, it would point the way enshrined in the Constitution by tion of an amendment to the U.S. Con­ toward monetary stability through the gold amendment. Freedom of speech is one stitution would secure and guarantee February 17, 1983 EXTENSIONS OF REMARKS 2559 fundamental human rights to all propaganda campaign to retain many related to the "FBS" issue; third, a compar­ Americans and I encourage you to join of its SS-20's has been engaged in se­ ison of all nuclear systems, crossing the me in supporting ratification of the lective statistics-to put it charitably. entire spectrum from the so-called tactical ERA in the 98th Congress.e At this point I wish to .insert in the support weapons through aircraft, intermediate and RECORD part of chapter I of USSI long-range rockets and other categories of FDA APPROVAL LABELING ACT report 83-1, "The Nuclear Balance in nuclear systems such as those found in air Europe: Status, Trends and Implica­ defense systems, barrier munitions and those weapons HON. HENRY A. WAXMAN major myths of the current debate. which have application in anti-submarine OF CALIFORNIA MYTHS AND REALITIES warfare. But before undertaking these com­ IN THE HOUSE OF REPRESENTATIVES The principal ones are the following: parisons, it is useful to look at least briefly Thursday, February 17, 1983 Myth 1: The Soviets have deployed nuclear at the historical background against which weapons in support of the Warsaw Pact ba­ the nuclear postures of the two alliances •Mr. WAXMAN. Mr. Speaker, I am sically as a reaction and counter-deterrent have evolved.• introducing today H.R. 1554, the FDA to nuclear deployments by NATO. The reali­ Approval Labeling Act. Currently, sec­ ty is that Soviet nuclear weapons are de­ tion 301<1> of the Federal Food, Drug ployed in support of an integrated air­ NOT A FREE-TRADE WORLD and Cosmetic Act prohibits ground offensive concept of operations. The anyone from making representations ranges, yields and numbers of Soviet weap­ HON. ARLAN STANGELAND regarding FDA approval in the label­ ons, along with their organization, doctrine, ing or advertising of any · drug or training and acquisition, describe a Soviet OF MINNESOTA theater nuclear force capability that is far IN THE HOUSE OF REPRESENTATIVES device. This statutory ban makes it in excess of anything thil.t could conceivably difficult for pharmacists to determine be characterized as a counter-deterrent to Thursday, February 17, 1983 whether a drug has been approved by NATO nuclear capabilities. e Mr. STANGELAND. Mr. Speaker, FDA. Although it is illegal to market a Myth 2: NATO holds a two-to-one numeri­ today I am pleased to insert in the drug without prior FDA approval, and cal advantage in theater nuclear weapons CONGRESSIONAL RECORD a copy of an FDA aggressively enforces the law, over the Warsaw Pact-an advantage that article I recently received from a good some unapproved drugs are available allows NATO room for unilateral nuclear concessions or at least a "freeze." Admitted­ friend and constituent of mine, Mr. Al in the marketplace and have been in­ ly, the "two-to-one myth," which became Bloomquist. advertently dispersed by pharmacists. deeply entrenched in Alliance perceptions The author of the article is Mr. Presently, there is no simple way for during the 1970s, hr:s given way to some Burton M. Joseph, chairman of the I. a pharmacist filling a prescription to extent under the glare of the realities. Even S. Joseph Co., and it is taken from the check whether a drug has been ap­ the Soviets, in their propaganda pronounce­ January 1983 Corporate Report maga­ proved by FDA. While many drugs are ments, contend that a "rough patjty" exists between the nuclear arsenals of the two alli­ zine. Mr. Joseph's article represents an labeled with the National Drug Code ances. Nevertheless, the legend of comforta­ interesting and thought-provoking number, that number is chosen ble NATO nuclear advantages in Europe, analysis of the challenges we face in by the manufacturer to identify the which are now vaguely attributed to a bolstering our severely depressed agri­ product and firm. It does not indicate "qualitative" superiority, continues to cultural economy. I particularly appre­ FDA approval. The new drug applica­ linger. The reality, in any event, is that sub­ ciated his observation that- tion or an abbreviated new stantial quantitative advantages now belong to the Warsaw Pact, and that these are com­ We should recognize that it is not a free­ drug application number also trade world in which we compete. does not indicate approval, but rather bined with some significant qualitative force advantages as well. I strongly encourage my colleagues receipt by FDA of an application for Myth 3: NATO's Long-Range Theater Nu­ to examine his remarks on the impor­ drug approval. clear Force fLRTNFJ Modernization Pro­ tance of regaining our international Similar to a FDA proposal, the bill gram-the deci8ion taken in 1979 to d,eploy markets. would eliminate the statutory ban in 108 Pershing-II and 464 ground-launched The article follows: section 301<1> with respect to drugs. cruise missiles fGLCMsJ-is unnecessary, The effect of the bill is to permit the provocative and will upset the nuclear "bal­ BURTON M. JOSEPH, CHAIIUllAN, I.S. JOSEPH inclusion of accurate statements con­ ance" in Europe. The reality is that the Co. cerning FDA approval in labeling or Modernization Program represents a vitally Hubert Humphrey used to say that if you necessary, if modest, step toward nuclear get right with agriculture in Minnesota, you advertising for drugs. False or mislead­ stability and augurs the only hope of under­ are right with the whole economy of Minne­ ing statements would continue to be writing a viable NATO conventional defense sota. What he was implying of course, was prohibited under section 301(b) of at affordable costs. that since agriculture represents 40 percent FFDCA. Myth 4: NATO somehow has an un.tair ad­ of the state gross product, the state thrives Thank you, Mr. Speaker.• vantage in what the Soviets call "Forward when agriculture thrives. Based Systems" fFBSJ. The Soviets in their Unfortunately for those of us in Minneso­ definition of FBS include U.S. and U.K. air­ ta, and for that matter in the entire Mid­ NUCLEAR BALANCE IN EUROPE: craft, U.S. carrier forces, as well as the inde­ west, agriculture has Just endured a third MYTHS AND FACTS pendent nuclear forces of the United King­ consecutive year of recession. dom and France. The reality is that the Farm prices measured on a parity basis Warsaw Pact has a ten-to-one quantitative are equiva­ HON. ROBERT H. MICHEL advantage in "FBS,'' along with significant lent to prices during one of the most dis­ OF ILLINOIS qualitative and geographical assets. tressed periods in the history of American IN THE HOUSE OF REPRESENTATIVES Myth 5: NATO has a preponderance of bat­ agriculture-the mid-1930s. Surely a depres­ Thursday, February 17, 1983 tlefield nuclear weapons-primarily artil­ sion for the farmers. lery-fired atomic projectiles fAFAPJ and The agricultural-processing group, such as e Mr. MICHEL. Mr. Speaker, the short-range rockets-which give the Alliance flour millers, oil-seed crushers, and corn mil­ question of nuclear balance in Europe distinct advantages in the nuclear arena. lers, are experiencing the worst of both is among the most important of the The reality is that there is approximate worlds-low volume and low margins. The entire nuclear debate. Recently the parity in such short-range forces; moreover, agricultural-processing industry is a margin United States Strategic Institute both geography and likely battle scenarios industry that can afford to sacrifice some present NATO with some serious problems volume if margins hold up. But competition -a nonprofit, nonpartisan, with respect to the utility of these weapons. in the industry is currently severe, as a nongovernmental organization-ad­ This monograph will cover three aspects result of the capacity added during the dressed the question of nuclear bal­ in some detail: first, nuclear capabilities on glory years of the middle and late 1970s; in ance and came up with some interest­ both sides in surface-to-surface ballistic mis­ order to keep factories and facilities busy, ing answers. It would appear the siles; second, dual-capable nuclear/conven­ processors are undercutting one another. Soviet Union, in its unprecedented tional aircraft available to both sides and Consequently, margins have deteriorated se- 2560 EXTENSIONS OF REMARKS February 17, 1983 riously. Unfortunately, lower prices have of the House of Representatives on chiatric clinic as well as the probation not resulted in higher volume; the new proc­ Tuesday, February 16, 1983, for roll­ department. Mr. Speaker, in addition essing, storage, and logistics capacity was in call Nos. 8 and 9. Had I been present I to the 33 years as a certified social large measure installed for international trade, and the international side of the busi­ would have voted "yea" on H.R. 861- worker, DeSanti earned a World War ness is definitely in trouble. More about Small business pilot procurement pro­ II Victory Medal, a Middle Eastern that later. grams extension; and "yea" on H.R. Campaign Medal, and four Bronze Another wobbly leg of the agricultural 1043-to improve small business access Stars for 29 months of combat duty in platform is the input suppliers: fertilizer to procurement information and con­ the European and African Theaters manufacturers, herbicide and pesticide sup­ tracting opportunities.e from June 1943 to November 1945. pliers, agricultural-equipment manufactur­ Mr. Speaker, Mr. Edward J. Dvorak ers, and logistic suppliers such as barge lines, railroads, and stevedoring companies. A SALUTE TO THE CUYAHOGA is the third honoree on this occasion. All are taking a real pounding, because their COUNTY BAR ASSOCIATION'S In 1952, Mr. Dvorak became a case oversupply of equipment and personnel has PUBLIC SERVANTS MERIT worker for the Catholic Youth Service resulted in stiff competition among them­ AWARDS HONOREES counseling adolescent boys. Following selves and a virtual collapse in rates and his graduation from John Carroll Uni­ prices. versity in 1954, he was appointed to It is a pretty grim story, and it does not HON. LOUIS STOKES the Cleveland Municipal Court as a auger well for the state of Minnesota. The OF OHIO probation department officer. In 1963, most troubling and worrisome part of all of IN THE HOUSE OF REPRESENTATIVES this is that Minnesota agriculture has been he was advanced to the role of a super­ recognized for decades as playing a lead role Thursday, February 17, 1983 visor in the department where he now in the world's most efficient, lowest-cost e Mr. STOKES. Mr. Speaker, it is a trains and supervises probation offi­ system of food supply. Simply put, Ameri­ pleasure for me to join once again this cers. Mr. Dvorak has done graduate can agriculture produced a unit of agricul­ work in psychological testing, guid­ ture-a ton of grain, a bale of cotton, a year with the Cuyahoga County Bar Association in saluting five public serv­ ance, and counseling. He has lectured pound of edible fats, a bag of flour, what­ and written on correctional subjects ever-at the lowest unit cost of any country ants on the occasion of the 3'1th in the Western industrialized world. This Annual Public Servants Merit Awards throughout the State of Ohio. He is production has been beautifully served by a Luncheon in Cleveland. The luncheon also a recognized authority on alcohol­ logistical apparatus that delivers the goods wlll be held in Cleveland on Tuesday. ic and drug rehabilitation programs. efficiently, both at home and abroad. February 22, 1983. The bar association's fourth honoree It is unfortunate, but true, that in the Mr. Speaker, each of the five honor­ is Francis 0. Gallagher. On January 1, past three or four years we have been ne­ ees on this occasion can proudly boast 1952, the ex-featherweight Champion glecting our efficient agribusiness structure, of the World, Johnny Kilbane, as spending our depreciation to pay current of 30 years of public service. I would bills and not to replenish the land or replace like to take this opportunity to com­ Cleveland's Municipal Court clerk, the factories. Slowly but surely, American mend the Cuyahoga County Bar Asso­ gave Frank Gallagher a job as a agriculture is going the way of the smoke­ ciation president, Mr. Wllllam L. Sum­ deputy in charge of the trustee divi­ stack industries-steel, rubber, autos-bur­ mers on this occasion and pay special sion. Later, clerk Helen Lyons ad­ dened with high costs, eventually uncom­ tribute to each honoree. vanced him to assistant chief of the petitive. The first honoree, Mr. Robert L. courts conciliation division. When Mu­ If we continue to let this happen-if we nicipal Judge John V. Corrigan was let our plant deteriorate and decline, and Curry has been in public service since thereby end up with an inefficient and 1953. The son of the late County Com­ elected to the county common pleas high-cost agricultural system-we will be re­ missioner John F. Curry, he began his court, he took along Gallagher as his duced to colonial-nation status, exporting service in the Legal Department of the bailiff in March 1966. From 19'13 to only raw materials and no furnished goods. County Welfare Department. After 19'16, Mr. Gallagher served as bailiff How to halt this erosion? My Judgment is serving as a first lieutenant in the for Common Pleas Judge James J. that we must force our way back into inter­ Army Transportation Corporation McGettrick. On January 1, 19'1'1, a national markets, which is the edge we need from 1953-1956, in France, Germany, quarter century after his entrance to a to rebuild volume and margins. We should public service career, he was appointed recognize that it is not a free-trade world in Italy, and Switzerland, Mr. Curry re­ which we compete. Our international rivals, turned to the Welfare Department a deputy court administrator of the particularly in South America and Western until April 195'1 when he was appoint­ Eighth Appellate District Court of Ap­ Europe, are subsidizing the export of agri­ ed a trial referee of probate court peals. On January 1, 1980, he was cultural goods, both raw materials and proc­ where he hears contested matters. Mr. named chief deputy administrator. essed items, at unbelievable rates. To catch Curry's hobbies include amateur the­ For 22 years, Mr. Speaker, Francis the attention of these rivals, we must under­ atrics, opera record collecting, gour­ Gallagher has umpired in the Cleve­ take, without delay, a policy to meet head­ land Lakewood Umpires Association. on the immediate threat of losing our tradi­ met cooking, and travel. He is current­ tional customers around the world. We now ly a member of the board of trustees He is a former member of the Arbitra­ spend $12 billion per year to retire acreage of Lakewood Theatre-Beck Center. tion Commission of the Cleveland and to store grain, dairy products, and other The second honoree, Mr. Speaker, is Baseball Federation and a former agricultural surpluses in order to keep these Mr. Andrew J. Desanti. In 1950, while coach of St. Mark's Parish CYO base­ items off the market. This money would be attending Ohio University, Andrew J. ball and basketball. far better spent in a subsidy program for Desanti began his career in juvenile Mr. Speaker, the Cuyahoga County export, by which we could revitalize our court work at Dayton, Ohio. After re­ Bar Association's final honoree is Ms. farms and support industries with stepped­ up volume at decent margins. Our assign­ ceiving a master's degree in social Llllian C. Kreczmer. After '1 years as a ment in 1983 is to work to bring this about.e work, in 1955, from Ohio State Univer­ Federal employee with the regional sity, he moved to Cleveland in 1956 office of the Veterans' Administration, and was hired by the Cuyahoga Ms. Llllian C. Kreczmer's obligations PERSONAL EXPLANATION County Juvenile Court to train and su­ at home forced her to leave Federal pervise probation officers and stu­ employment. She did, however, return HON. DAN MARRIOTI' dents. In 1960, Mr. Desanti was named to the Navy Finance Center as a clerk­ OF UTAH assistant chief of probation services. typist in November 1959, and from IN THE HOUSE OF REPRESENTATIVES He was appointed director of training 1960 to 1962, she was back at the re­ services in 1966 and in 1970 became gional VA office. Thursday, February 17, 1983 chief probation officer. In this latter In 1962, Ms. Kreczmer was chosen as e Mr. MARRIOT!'. Mr. Speaker, I position, he assumed responsibility for a secretary in the office of the U.S. was unable to be present on the floor the operation of the record room, psy- district attorney where she served February 17, 1983 EXTENSIONS OF REMARKS 2561 with distinction until her retirement greatly harm the government's ability to en­ puted Jurisdiction to hear a suit brought by on December 31, 1982. She has won force federal statutes. The executive branch Congress to enforce its subpoenas to execu­ seven outstanding performance rating also fears political pressures from congress­ tive branch officials, require that executive certificates from the Federal Govern­ men apprised of law-enforcement strategies. officials promply answer Congress' com­ ment. In 1972, the Cleveland Federal Moreover, the U.S. attorney for the Dis­ plaint, and require that the courts, includ­ trict of Columbia, Stanley S. Harris, a ing the Supreme Court, give the case expe­ Executive Board awarded her a cita­ Reagan appointee, has said that, until the ditious treatment. tion for secretarial excellence, and in civil suit is resolved, he will not bring the Such a system might not be perfect. But 1975, the U.S. Department of Justice matter before a grand Jury, even though the at least this approach, which in essence was honored her with its "Superior Per­ federal contempt-of-Congress statute specif­ recommended by the Senate Watergate formance Award." ically requires him to do so. Committee, would allow neutral arbiters­ Mr. Speaker, I ask at this time, that House officials have moved to dismiss the the courts-to resolve quickly the thorny suit on various grounds, including the con· constitutional disputes that arise all too fre­ my colleagues join me in saluting this stitutional immunity that congressmen exemplary public servant and the Cuy­ quently between the legislative and execu­ enjoy against suits attacking their legisla­ tive branches. ahoga County Bar Association on this tive actions. And it would provide a mechanism to special occasion.e The House also strenuously objects to the avoid both criminal prosecutions of execu­ executive branch's suing as the "United tive officials, who may Just be following States." Congress, the House says, is a co­ orders, and dubious lawsuits against con­ THE EPA EXECUTIVE PRIVILEGE equal branch of government and has as gressmen that challenge the immunity DILEMMA much claim to that designation as does the given them by the Constitution.e executive branch. One House member has raised the specter HON. CARROLL HUBBARD, JR. of impeachment proceedings against the at­ OF KENTUCKY torney general and the U.S. attorney. And a BIG BROTHERS/BIG SISTERS IN THE HOUSE OF REPRESENTATIVES congressional lawyer recently said that the Thursday, February 17, 1983 House itself might arrest Gorsuch if the HON. DAN COATS Justice Department refuses to prosecute e Mr. HUBBARD. Mr. Speaker, I be­ her. OP' INDIANA lieve that all Members of Congress are If this cacophony of claims and counter­ IN THE HOUSE OF REPRESENTATIVES aware of the controversial events that claims sounds confusing, it is. Thursday, February 17, 1983 Constitutional scholars are scratching have occurred recently surrounding •Mr. COATS. Mr. Speaker, Congress­ the Environmental Protection Agency, their heads as they ponder how the federal courts will resolve the issues presented. A woman MARILYN LLOYD BOUQUARD and its Administrator, congressional ac­ federal Judge is now deciding whether to I introduced legislation designating tions, and executive privilege princi­ dismiss the suit brought by the executive the week of February 13 as Big Broth­ ples. James Hamilton, a Washington, branch. ers/Big Sisters Appreciation Week. In D.C., attorney with the law firm of There is a better way to resolve such dis­ putes. less than a month, we received the Ginsburg, Feldman, Weil & Bress, has support of 66 of our colleagues. We written an excellent article entitled, At present, there are two, perhaps three, means for the House to force feel this is a significant indication "A Way Out of Executive-Privilege Di­ compliance with its subpoenas to executive within the Congress that Big Broth­ lemma." Jim Hamilton is the author branch officials and others. ers/Big Sisters should receive national of "The Power to Probe: A Study of The House can, as it has done here, cite recognition for their many worthwhile Congressional Investigations." He was the offender for contempt and send the services to children. assistant chief counsel for the Senate matter to the Justice Department for pros­ Big Brothers/Big Sisters of America Watergate Committee. The following ecution. This method, however, raises deli­ cate constitutional questions as to the ulti­ exists to extend special attention to article appeared in the Los Angeles children who are growing up in one­ Times on February 3. I know my col­ mate discretion of the U.S. attorney to de­ cline to press criminal charges. And it may parent families. There are over 12 mil­ leagues will be interested in his com­ result in criminal prosecutions of persons lion children in the United States who ments. who by no stretch of the imagination should are in this situation. Whether as a CFrom the Los Angeles Times, Feb. 3, 19831 be considered "criminals." result of divorce, death, or desertion, A WAY OUT OF Ex!:CUTIVE·PRIVILEGE The House also has constitutional author­ some 40 percent of all children born DILEMXA ity to arrest persons who defy its subpoenas since 1970 will spend 5 years or more and to confine the culprits in the Capitol or elsewhere until the requested materials are in a single-parent home. Many of Surely wise men can devise a better way to produced or the House session expires. them will need more attention than determine whether the executive branch However, this procedure has not been one individual can possibly give. In the must release information to Congress. used since the mid-1930s, and may be im­ absence of an extended family, a big In a highly publicized incident, Anne M. practical. What if the President arrayed the Gorsuch, administrator of the U.S. Environ­ brother or big sister can help to fulfill Marines in front of the EPA to prevent the these needs. For almost 80 years, these mental Protection Agency, has refused on House sergeant-at-arms from arresting poor President Reagan's instruction to release 64 Gorsuch? one-to-one friendships developed by documents subpoenaed by a subcommittee Perhaps the House also could bring a civil big brothers to little brothers and big of the House Public Works and Transporta­ lawsuit against an executive official who re­ sisters to little sisters have helped tion Committee. These documents purport­ fuses to produce records. At present, howev­ many children through the most chal­ edly relate to hazardous-waste sites and er, there are substantial problems with this lenging and crucial times of their lives. come from active EPA law-enforcement approach. A federal court may not have Ju­ Congresswoman BouQUARD and I files. Gorsuch's action has triggered a brou­ risdiction to hear such a suit, even though a would like to thank the following haha of constitutional proportions. good argument can be made that a recent Members for joining us in support of The House has responded to Gorsuch's re­ amendment to federal law gives it that fusal by citing her for contempt of Con­ power. House Joint Resolution 97: Mr. DAVIS, gress, and has shipped the matter to the In addition, under current rules, a court Mr. LEvIN of Michigan, Mr. JEFFORDS, Justice Department for criminal prosecu­ battle between the executive and Congress Mr. FRANK, Mr. YOUNG of Alaska, Mr. tion. The executive branch-suing as the could well be a protracted affair. For start­ MORRISON of Connecticut, Mr. DURBIN, "United States"-has retaliated by bringing ers, the executive branch normally would Mr. STUMP, Mr. FROST, Mr. ROBERTS, a lawsuit against the House, Speaker have 60 days to answer a complaint, and Mr. WAXMAN, Mr. ScHEuER, Mr. FOGLI­ Thomas P. O'Neill Jr. and others. The suit even important constitutional matters gen­ ETTA, Mr. WHITLEY, Mr. LoWERY of seeks a ruling that the House's action is un­ erally move at a snail's pace through the constitutional because it violates executive­ federal courts. Even if Congress eventually California, Mr. HUCKABY, Mr. FRENZEL, privilege principles. were successful, it might be denied vital in­ Mr. FAZIO, Mrs. HALL of Indiana, Mr. The suit says that Congress, where leaks formation for many months. GREEN, Mr. WHITrAKER, Mr. REm, Mr. abound, has no right to law-enforcement What is needed is a new statute that LEvINE of California, Mr. GRADISON, documents whose public disclosure would would provide the federal courts with undis· Mr. SHARP, Mr. LENT, and Mr. HILER. 2562 EXTENSIONS OF REMARKS February 17, 1983 Also, Mr. MOAKLEY, Mr. MILLER of There are still many stages through and the Vredeling proposal will stifle Ohio, Mr. SHANNON, Mr. SUNIA, Mr. which the Vredeling proposal must new investment in Europe. The re­ LAGOMARSINO, Mr. ARCHER, Mr. pass before it becomes law. The Euro­ quirements currently found in the pro­ HORTON, Mr. VANDER JAGT, Mr. HARRI­ pean Commission must recommend a posal are not simply "the cost of doing SON, Mr. WHEAT, Mr. ROE, Mr. LELAND, final test to the Council of Ministers, business" in Europe, quite the con­ Mr. WOLF, Mr. FROST, Mr. KASICH, Mr. and the Council must give its approv­ trary, it would strike at every attempt BORSKI, Mr. GEKAS, Mr. OWENS, Mr. al. Then each of the member states of by a company to realize a competitive HOWARD, Ms. MIKULSKI, Mr. SMITH of the EC must adopt implementing leg­ advantage in the marketplace. Florida, Mr. ALBOSTA, Mr. CORRADA, islation of its own. Frankly, if the European govern­ Mr. MOORE, Mr. CAMPBELL, Mr. At any of these stages, changes can ments want to place their own busi­ McGRATH, Mr. WYLIE, Mrs. BOXER, be introduced, compromises negotiat­ ness operations into a straitjacket that Mr. ANDREWS of Texas, Mr. LEwis of ed, and improvements made. Yet Com­ may not seem wise, it is clearly their California, Mr. HUGHES, Mr. PRICE, Mr. missioner Ivor Richard, who has juris­ right. However, American based com­ MARTIN of New York, Mr. MRAzEK, Mr. diction over the proposal at the panies with operations in Europe are VANDERGRIFF, Mr. SLATTERY, Mr. moment, and whose views are likely to threatened by this proposed legisla­ MCNULTY, Mr. LATTA, and Mr. MINETA. carry great weight, has indicated the tion, could be asked to violate Ameri­ While the legislation did not become direction in which he wants the pro­ can law, and run the risk of having de­ a public law this year, we intend to re­ posal to develop. cisions not reached in Europe dis­ introduce it for 1984, and again seek Mr. Speaker, I do not like the direc­ closed for all the world to see. This is national recognition of the continual tion Mr. Richard has chosen. That is an unacceptable proposal. commitment and caring of Big Broth­ the direction of international collec­ Supporters of this proposal claim ers and Big Sisters for those who need tive bargaining, with European unions not to understand why there is so this extra love and friendship. We given the power to obtain confidential much controvery concerning Vrede­ hope to have the support of the above information from American compa­ ling. They point out that many compa­ Members and ask our other colleagues nies, and to stymie the decisionmaking process until that information is pro­ nies engage in involuntary discussions to join us in accomplishing this with workers now, and point to the worthy goal.e vided. Under the Richard version of the German and Dutch systems as proof proposal, anytime a company intends that Vredeling is a workable solution. THE PROTECTION OF CONFI­ to make a decision arguably affecting Voluntary discussions are to be en­ DENTIAL BUSINESS INFORMA­ workers in Europe, information must couraged, but forced consultation with TION ACT OF 1983 be disclosed to workers' representa­ "a view to reaching an agreement," an tives before the decision is made. Then undefined clause in the proposal, and HON. THOMAS A. LUKEN there must be consultations, aimed at the possibility of judicially mandated reaching agreement. While it is true disclosure of business secrets goes far OP OHIO beyond any anticipated method of dis­ IN THE HOUSE OF REPRESENTATIVES that the proposal would technically limit the scope of consultations to the cussion concerning management and Thursday, February 17, 1983 effects of the decision on the work workers. • Mr. LUKEN. Mr. Speaker, I have in­ force, it is inevitable that, in practice, We are all aware of the strained troduced today the Protection of Con­ management would be expected tone­ international trade picture that con­ fidential Business Information Act of gotiate over the proposed decision fronts all nations today. While this is 1983. With some modifications, this is itself. not specifically a trade matter-it a bill I introduced nearly 2 years ago If the data called for are secret, they clearly relates to growth and invest­ in the 97th Congress. I submit it once must still be disclosed. The Europeans ment between the United States and again because I am convinced that the argue that sanctions against unau­ its most valued trading partners. No danger the bill seeks to avoid, the co­ thorized dissemination can provide one wants to see new barriers erected erced disclosure of confidential infor­ any necessary protection. I think that that would diminish economic growth, mation by American companies over­ this is a classic instance of shutting yet that is clearly what Vredeling pro­ seas, is every bit as real today as it was the barn door after the horse has es­ posal does. Further, it could lead to then. The most immediate threat to caped: if company secrets are pub­ extraterritoral intrusions into the de­ which my bill would respond is the lished for all the world to see, no slap cisions of American businesses. Vredeling proposal of the European on the wrist of a union official can I wish I could tell you that Vredeling Communities . undo the harm that will have been is an isolated instance of disagreeable My bill provides the power and au­ caused. legislation, quite the contrary, there thority of U.S. law to resist the extra­ Mr. Speaker, there is no one in this are other more radical proposals that territorial reach of EC proposals. It is Chamber who is not concerned about are now being discussed within the Eu­ intended as "blocking legislation" to the problems of unemployment, both ropean Community. This only points minimize the unfavorable effects of here and abroad. Our depressed econo­ out the need for action on the Protec­ the Vredeling requirement to disclose my is tied with economies of our trad­ tion of Confidential Business Informa­ all manner of confidential information ing partners. While each country looks tion Act of 1983. to workers' representatives in Europe, for internal means of recovery, we I am pleased to have our colleague including information which would must all be aware that all of our from Michigan if personal injury or death results to legal to disseminate false information another, by imprisonment for any terms of concerning the tampering of a product years or for life; HON. HAROLD S. SA WYER with willful and malicious intent. The "Cii) if such conduct causes any person to OF MICHIGAN be in sustained fear for his or an.other per­ penalties for these offenses include a son's safety, causes any government agency IN THE HOUSE OF REPRESENTATIVES maximum prison sentence of 20 years or authority to direct a sale prohibition Thursday, February 17, 1983 and a fine of $100,000. Where personal against, or recall of, any food, drug, device, injury or death results, a maximum or cosmetic, or causes any individual, part­ •Mr. SAWYER. Mr. Speaker, today I penalty of life imprisonment is provid­ nership, corporation, or association to im­ am introducing, on behalf of myself ed. This House version is identical to plement such prohibition or recall in re­ and Messrs. HYDE, MOORHEAD, SENSEN­ S. 216 in every respect, except that I sponse to such conduct, or causes other seri­ BRENNER, MCCOLLUM, DEWINE, MAz­ have increased the fine ceiling from ous disruption to the public, by imprison­ ZOLI, and HARKIN, a bill to protect in­ $20,000 to $100,000. ment for not more than. twenty years or by nocent and unsuspecting consumers The House Committee on the Judici­ a fine of not more than $100,000, or both. from the malicious, cold-blooded acts "Cc> As used in subsection Ca), 'food', ary's Subcommittee on Crime will ad­ 'drug', 'device', 'cosmetic', and 'adulterated' of individuals who tamper with prod­ dress the consumer product tampering shall have the meanings ascribed to those ucts prior to consumer purchase. This issue in the very early days of March. terms in the Federal Food, Drug, and Cos­ proposal is the companion bill to I urge all members to join me in co­ metic Act, as amended C21 U.S.C. 301-392>; S. 216 as introduced by Senator THuR­ sponsoring the Federal Anti-Tamper­ 'hazardous substance' shall have the mean­ MOND and many of his colleagues on ing Act, with the purpose of insuring ing ascribed to that term in the Federal January 27, 1983. consumer safety in the purchase of Hazardous Substances Act C15 U.S.C. The individual or group of individ­ products so much a part of our Ameri­ 1261Cf)).". uals who placed cyanide-filled Tylenol SEC. 3. If any provision of this Act is held can way of life. invalid, all valid provisions that are sever­ capsules on store shelves with total H.R.1544 able shall remain in effect. If a provision of disregard for human life caused sever­ A bill to amend title 18, United States Code, this Act is held invalid in one or more of its al random deaths in the Chicago area. to combat, deter, and punish individuals applications, the provision shall remain in In the wake of this tragedy, manufac­ who adulterate or otherwise tamper with effect in all of its valid applications that are turers were forced to recall products food, drug, cosmetic, and other products severable. at great expense, and copycats have with intent to cause personal injury, SEC. 4. The analysis of part I of title 18, been inspired to continue the tamper­ death, or other harm United States Code, is amended by adding ing trend in a variety of gruesome Be it enacted by the Senate and House of the following: ways. Representatives of the United States of "56. Adulteration ...... 1211".e A new angle, the "false scare," has America in Congress assembled, That this Act may be cited as the "Federal Anti-Tam­ developed. For example, in my own pering Act". OUR RIGHT TO WORK State of Michigan, the Hygrade Food SEC. 2. Title 18, United States Code, is Co. initiated a financially burdensome amended by adding the following new chap­ recall of thousands of hot dogs after it ter: HON. TOM CORCORAN was falsely and maliciously claimed "CHAPTER 56-ADULTERATION OF ILLINOIS that razor blades and tacks had been "§ 1211. Malicious injury by adulterating a prod­ IN THE HOUSE OF REPRESENTATIVES inserted into the meat. uct In the aftermath of the tampering "Ca> Whoever, with intent to injure, kill, Thursday, February 17, 1983 scare, consumers now play Russian or endanger the health or safety of any e Mr. CORCORAN. Mr. Speaker, as I roulette with their own safety every person, or with intent to cause damage or was reading some of the Illinois news­ time they purchase the very products injury to the business reputation of an. indi­ papers recently, I came across an edi­ necessary to their own well-being. This vidual, partnership, corporation, associa­ torial in the Dwight Star & Herald might be expected in a good horror tion, or other business entity C1> does any act which results in a food, drug, device, or which interested me. I have long been movie, but it cannot be tolerated in cosmetic being adulterated or attempts to impressed by the professionallsm of American society. do any such act or C2> tampers or attempts the Tock family which owns and runs The criminal act of tampering with to tamper with any hazardous substance or that particular newspaper. Unfortu­ consumer products dictates the swift any other article, product, or commodity of nately, the last reapportionment took and forceful involvement of the Feder­ any kind or class which is produced or dis­ that fine community and its newspa­ al Government. The Food and Drug tributed for consumption by individuals or per from my current congressional dis­ Administration has reacted quickly to use by individuals for purposes of personal trict. protect consumers by setting antitam­ care or in the performance of services ren­ dered within the household, if such act of For the benefit of you, Mr. Speaker, pering packaging standards. The John­ adulteration or tampering occurs before the and my colleagues, I am including the son & Johnson Co., itself a victim of food, drug, device, cosmetic, hazardous sub­ editorial which details an issue which the Tylenol tampering, has done a stance or other article, product, or commod­ affects all of us. swift and outstanding job of packaging ity is introduced or delivered for introduc­ CFrom the Star & Herald after shipment in interstate com­ Let's face it, this country is in a complete merce, or if such act of adulteration or tam­ economic mess. Nationwide investigation and the pering otherwise affects interstate com­ Unreasonable union demands, high inter­ swift enforcement of strict Federal merce, shall be punished by imprisonment est rates, business's reluctance to invest Ctn penalties must also be used to deter for not more than. twenty years or fined not an. attempt to stay "even" with costs>. infla­ the act of tampering. This is the pur­ more than $100,000, or both, or, if personal tion and government inab111ty to control its pose of the Federal Anti-Tampering injury or death results to an.other, by im­ spending have resulted in the worst econom­ Act, which creates a new offense in prisonment for any term of years or for life. ic situation since the Depression. title 18 of the United States Code. "Cb) Whoever, with willful and malicious Most elements creating the economic mess Under this proposal, it would be illegal intent, imparts or conveys or causes to be are controllable. The most difficult to con­ imparted or conveyed false information, trol, however, are demands by labor unions. to tamper or attempt to adulterate a knowing the information to be false, con­ The right-to-work law would prohibit broad range of consumer products af­ cerning an attempt or alleged attempt being union-employer agreements making union fecting interstate commerce, with the made or to be made, to do any act which membership a requisite for employment. intent to injure or kill any person or would constitute a violation of subsection The point of right-to-work, however, is that to damage a business reputation. Ca> shall be punished- individuals must be allowed their freedoms 2564 EXTENSIONS OF REMARKS February 17, 1983 in the workplace just as absolutely as in so­ days of public hearings and 4 days of research program will lead to a health­ ciety. markup sessions were devoted to its ier, more productive population. They must have the right to hold a job I urge each Member's support for without being forced to join a labor union. development. The argument that closed shops prevent the The Health Research Extension Act this important legislation.e company from pitting workers against each of 1983 is, for the most part, a techni­ other holds no water. Friction among work­ cal revision of title IV of the Public ers is even more intense when some workers Health Service Act. This revision, the RICK VORHIES: A REAL HERO are forced to "join the club" simply because first since 1944, is long overdue and a majority of the employees choose to do so. necessary to adequately define the re­ HON. HAROLD ROGERS Compulsory unionism does unite all the sponsibilities of the NIH and to workers against the employer-creating a OF KENTUCKY situation in which productivity falls and streamline redundant or inconsistent worker and boss behave as adversaries, not authorities. IN THE HOUSE OF REPRESENTATIVES partners. In addition, the legislation extends Thursday, February 17, 1983 Union monopolies can and do reduce crea­ for 3 fiscal years the authorization of tivity, competition among workers and pride appropriations for expiring research e Mr. ROGERS. Mr. Speaker, our in the work at hand. They make it impossi­ authorities. These authorities include: world has unfortunately become a less ble for the medium and small employer to First, the National Cancer Institute; personal place these days. It seems the compete with non-union shops, which are policies of the good samaritan have strengthened by salaried non-union employ­ second, the National Heart, Lung and ees who like what they do and put out 100 Blood Institute; third, the National Li­ fallen on hard times. percent. brary of Medicine; fourth, the nation­ That is why it gives me so much Constant and unreasonable union de­ al research service awards; and fifth, pleasure to speak today about a true mands and unions' intense fear of automa­ various diabetes, arthritis, digestive, act of bravery, an act above and tion have put many good companies out of and kidney diseases activities. beyond the call of citizenship and business, eliminating thousands of jobs. The authorization levels contained neighborliness. All of which are strong arguments for in the bill are not as high as I would giving all workers a choice of whether or Just a few weeks ago, a resident of not to join a union. Freedom of choice-it's like, but do represent annual increases my district from Pulaski County, Ky., a concept on which this country was found­ reflecting the Congressional Budget was driving a coal truck along Inter­ ed.-Lombard Spectator.e Office's prediction for inflation and an state 75 near the town of Florence, in additional 10 percent representing the northern Kentucky. All of a sudden, need for continuing real growth in our the truck struck another truck in HEALTH RESEARCH EXTENSION health research program. front of it, and burst into flames. ACT OF 1983 The legislation also makes a number Inside, the driver, Roy Wesley of Sci­ of important changes to promote the ence Hill, lay injured. Without quick HON. HENRY A WAXMAN more effective and efficient manage­ assistance all hope for Mr. Wesley OF CALIFORNIA ment of the NIH. These changes in­ would have faded. clude procedures for peer review of in­ THE But another truck driver, traveling IN HOUSE OF REPRESENTATIVES tramural research and contracts, as Thursday, February 17, 1983 on the same stretch of highway, spot­ well as establishment of a system for ted the accident, and pulled over to •Mr. WAXMAN. Mr. Speak.er, on investigating reports of scientific mis­ assist. Rick Vorhies of Cambridge, behalf of Mr. PEPPER, Mr. SCHEUER, conduct. Ohio, at great peril to his own life, Mr. w ALGREN, Mr. OTTINGER, Mr. During the 97th Congress the com­ mittee discovered that research on the ripped a red-hot muffler off the door WIRTH, and myself, I am pleased to in­ of the flaming vehicle, and pulled troduce H.R. 1555, the Health Re­ prevention of disease had been serious­ search Extension Act of 1983. The leg­ ly underemphasized by NIH. Yet re­ Wesley out. He then rolled Wesley on islation provides for the reauthoriza­ search on prevention holds the great­ the ground to put out the flames that tion of the National Institute of est promise of one day reducing the in­ had begun burning his body. Wesley Health them. In 1950 Buffalo had attained a pinnacle of The movie Gandhi is one of the most in­ What is amazing is that Sakharov has spiring I have ever seen of a man who is been successful in getting his message wealth and strength, the like of which had bigger than life itself. This little, half­ through to the Russian people. In a poll of seldom been achieved by cities of this or any clothed fragile man changed the course of 853 citizens mostly in and around Moscow, other nation in the past century. Yet in the history by using his intelligence, his com­ 20 percent of the people found him distinct­ space of a generation, we have become a de­ passion and an instrument of psychological ly negative. The majority of those polled moralized community in hock up to our warfare called "passive resistance." One were still undecided on Sakharov, despite ears. Enumeration of the myriad factors man can move a mountain if that man is a the fact that he has been portrayed as a that account for this deplorable decline, I Gandhi or Martin Luther King, Jr. traitor to the Russian people for years. leave to the various scientists who are Most people don't realize that an unprece­ It is interesting that the dissident move­ expert at marshalling somber statistics, and dented movement of resistance is taking ment, begun in the 60's, has not died, that it inferring from interdisciplinary studies the place in the Soviet Union today, led by a finds its strength in the intellectual and sci­ relationship of cause and effect. One thing, man of great patience, Andrei Sakharov. entific community. President Reagan looks however, is clear to all: We're no longer Fat The media portray Sakharov as a Jewish at the Soviet Union in the most simple City. Consequently, we must recognize that dissident. What he is, in fact, is a Russian terms, but this giant nation is, in fact, com­ now, as never before, this community relies dissident who is also Jewish. The distinction plicated, fueled by the same internal pres­ on leadership from every private and public is important because Sakharov has not tried sures that rage in the United States. While institution within its makeup if we are to to emigrate, rather he is a true revolution­ we have hawks and doves in this country, so bring this corrosive declaration to a screech­ ary concerned about the cause of human must the Russian government confront in­ ing halt. rights in his homeland. ternal pressures for more consumer prod­ For my part, I wish to address the quality Sakharov was the leader in the Soviet ucts and less military spending. of leadership that the citizens should expect effort to build a hydrogen bomb and estab­ While freedom of speech has given great from the Common Council. lished himself at an early age as one of Rus­ range to Americans who believe in taking a Courage and idealism are constituents of sia's leading scientists. In 1975 he was stand and feel that their voices can be leadership. Ten years ago Archbishop Sheen awarded the Nobel Peace Prize, a distinction heard, that mass movement of expression wrote: which marked him for ostracism in his has not caught on in Russia yet, but with "The tragedy in the loss of courage and homeland. In 1980 he was forcibly moved men like Andrei Sakharov leading the way, boldness on the part of leaders is the latent out of his home in Moscow and placed the infant dissident movement will someday courage in the young and their readiness to under house arrest in Gorki. grow into a mass voice of expression. follow those who have high ideals. The so­ Through the years he has earned the Like Gandhi, Sakharov pushes his ideas called generation gap does not exist; it is a erunity of Russian leaders by being the fore­ through his writings and through words and spirit-gap-the distance between the leaders most critic of their policies. In the late deeds. He is no terrorist, but his intellectual who are not on fire with ideals and the fol­ 1950's, deeply disturbed by the dangers of capacity is so huge that he can hardly be ig­ lowers who are enlighted torches waiting radioactive fallout, Sakharov began to call nored by either the Soviet government or its for the flame." for a moratorium, at conferences and com­ people. Gandhi was fortunate to have his Foresight, discipline and diplomacy are mittees, of atmospheric testing. At first he people behind him in his quest for freedom. characteristics of leadership. Each of these was a voice in the wilderness but in 1961 he Sakharov, in a nation of almost 300 million qualities flows from and is dependent upon wrote a note to Khrushchev condemning a people, has a small band of freedom fighters reason. As great a practitioner of the art of planned resumption of Soviet atomic testing trying to educate an entire nation. In the statecraft as Cardinal Richelieu observed and passed it to the Russian leader at a end, like Gandhi, Sakharov will stand as one that, "authority constrains obedience; dinner party. Soon after a nuclear test ban of the first revolutionary leaders for individ­ reason captivates it." was agreed to by both the United States and ual human rights in the Soviet Union. And if members of the Council wish to ex­ Russia. Gandhi and Sakharov both knew that free­ ercise leadership, they must remember that In 1961 Sakharov was a three-time recipi­ dom is a powerful universal quest that they are not merely delegates but trustees. ent of the Soviet Union's highest award, cannot be stamped out for long by mortal As Edmond Burke reminded the electors of "Hero of Socialist Labor." He was the men.e Bristol, a legislator is elected "to offer his youngest person ever elected to full mem­ unbiased opinion. his mature judgment, and bership in the Soviet Academy of Sciences. his enlightened conscience." At that point he enjoyed immense privileges NEED FOR STRONG AND Finally, no description of political leader­ as a result of his standing in the scientific EFFECTIVE LEADERS ship would be complete without a reference community but he was disturbed by events to power. In fact, political leadership may in his country. be defined as the exercise of power within He went on to oppose Khrushchev's edu­ HON.HENRYJ.NOWAK the dynamics of conflict. To be worthwhile, cational policies. He objected to the pollu­ OF NEW YORK leadership must aim at the com.mon good. tion of Lake Baikal, struggled against Soviet IN THE HOUSE OF REPRESENTATIVES Its results must be measured by actions that biologist Trofim Lysenko and signed a pro­ Thursday, February 17, 1983 respond to the needs of the people. To be test against the revival of Stalinism with 24 truly effective, leadership must engage other Soviet intellectuals. He gave away his •Mr. NOWAK. Mr. Speaker, the year people throughout the various levels and personal savings and prize money to the 1983 continues to find us engrossed in groups in society. For while laws may be the February 17, 1983 EXTENSIONS OF REMARKS 2567 bricks in the social structure, custom is the After five years on the Common Council, I of the number of military veterinarians; by mortar which binds them together. can say that there are leaders on the multiplying the number of veterinary serv­ By my own definitions, I can give our Common Council, but there are also figure­ ices by the difference between what private­ Common Council, myself included, high heads and bystanders. If the people want sector veterinarians charge and the lower marks and low marks. One high mark is the more leadership from the Council, they fees charged by military vets. foresight demonstrated by the leadership must recognize what the members are there Actually, the Pentagon makes money on taken by the Council on the issue of utility for. They must look for signs of each one's pet care. rates. The Council enacted a bond resolu­ capacity for leadership. Then they need to tion authorizing a study, required by state measure performance by Judging the qual­ The principal duties of Army and Air law, to examine the feasibility of establish­ ity of leadership. If this is done, they will Force vets are food in­ ing publicly owned and operated utility have a good Common Council, and an en­ spection and care for animals used in military by the example of Massena, New York, and the promise of representative self-gov­ functions. Clearly, it is proper for military which recently formed a municipal electric ernment.• vets to provide services relating to disease company. Rates were immediately reduced prevention . and emergency hu­ forthcoming from the Council. On the issue manitarian service to prevent undue suffer­ of reapportionment, we were laggard in the HON. ROBERT H. MICHEL ing, among animals owned by persons living performance of our duties. We should have OF ILLINOIS on military installations. Elective surgical acted decisively, maturely, in a timely fash­ IN THE HOUSE OF REPRESENTATIVES procedures such as spaying and neutering ion, and without regard to the personal po­ are performed only when civilian services litical priorities that stemmed from each of Thursday, February 17, 1983 are not reasonably available. our narrow views of self-interest. The •Mr. MICHEL. Mr. Speaker, colum­ Pet owners pay the full cost of supplies people were misled. The city was divided. nist George Will has contributed to and drugs, plus an additional charge to help The Common Council, deservedly, got a defray the general overhead of veterinary black eye. the public dialog by raising questions about recent charges made during the services. Yes, of course, there is a difference While no one expects public institutions between fees charged by private-sector vets to be perfect, we can demand that they be recent Democratic response to the and military vets. This difference that scan­ responsible and representative. And if we President's state of the Union address. dalizes Aspin and Daschle is explained by are to restore hope and confidence to an Will strongly suggests that certain the fact that electorate whose growing cynicism about Democratic charges made against the military vets are not allowing full play to politics has become manifest, we must dem­ Department of Defense were what onstrate the quality of leadership. the profit motive. In choosing a councilman to represent Winston Churchill used to call "termi­ But the veterinary service for private pets them, the people want a fair man, namely, nological inexactitudes." is making a profit. In 1981, the Air Force one who realizes that a taxpayer deserves a At this point, I wish to include in the made $647,000 on such services. The money reasonably proportionate return on his in­ RECORD, "From the Democrats, A was used to support morale, welfare and rec­ vestment. In footing the bill for city serv­ Howler," by George Will, in the Wash­ reational services. The American Veterinary ices, a taxpayer should enjoy the services of ington Post, February 3, 1983. Medical Association has concurred in this an administration that has effectively put CFrom the Washington Post, Feb. 3, 1983] policy of prophylactic medicine. each taxpayer's money to work for him, not Oh, yes-and one more thing. Aspin's re­ squandered or wasted it, or worse, stolen it. FROM THE DEMOCRATS, A HOWLER marks filled about a page and a half of the The people should also expect a council­ CONGRESSIONAL RECORD, costing taxpayers man to be wise-not filled with book learn­ Consider, for what it reveals about the about $1,000. ing, an armchair intellectual, but rather a Democrats' fitness to govern, their party's This "generals' pets" canard, which fig­ man who fully appreciates the demands of telecast "response" to the autumn, suggests the depths of anti-defense public servant; and is capable of sustaining State of Union address. Consider especially bigotry in the Democratic Party, which se­ sincere, understanding communion with the what the Democrats saw flt to have Rep. lected the canard for prime-time television. people, day in and day out. Thomas Daschle of South Dakota say about The virus of McGovernism is still in the A councilman must also be committed to the gravest issue, defense: party's system. And it was not Just regard­ excellen;::e in government. Clubhouse poli­ "The examples of waste are unbelievable. tics and the patronage game is to a large One, for instance. the Pentagon spent more ing defense that the Democrats' movie was. extent the reason for bad government. Ex­ than $3 million last year for shots and vet­ well, relaxed about the facts. cellence today signifies professionalism. erinary care for the pet dogs of generals." An AFL-CIO operative denounced as ad­ Government by crony is finished. Tomor­ Jeepers! That is $2,798.50 for every gener­ ministration "proposals" ideas that were row's councilman must really know what al's pet. When I called Daschle's office for never proposed. Someone identified only as each of the agencies of mumiclpal govern­ substantiation, I was referred to remarks a "retired businessman" took a silly state­ ment should be doing, and use his political printed in the Congressional Record by Rep. ment by a deputy undersecretary of defense power and skills to the end that each of Les Aspin