February 2, 1978 EXTENSIONS OF REMARKS 2143 By Mrs. SPELLMAN (for herself, Mr. Mr. GAMMAGE, Mr. JENKINS, Mr. H.R. 9214 LUNDINE, and Mr. McKINNEY): DUNCAN of Oregon. Mr. MURPHY of By Mr. STEERS: H.R. 10741. A bill to assist cities and States Illinois, Mr. DERWINSKI, Mr. YATRON, Page 3, add new section (d) after line 14: by amending section 5136 of the Revised Mr. YOUNG of Texas, Mr. ROBERTS, The Bretton Woods Agreement Act (22 USC Statutes, as amended, with respect to the and Mrs. COLLINS of Illinois): 286-286k-2), as amended, is further authority of national banks to underwrite H. Con. Res. 467. Concurrent resolution amended by adding at the end thereof the and deal in securities issued by State and expressing the sense of the Congress with following new subsection: local governments, and for other purposes; regard to the disposition by the United " ( d) ( 1 ) The Secretary of the Treasury to the Committee on Banking, Finance and States of any right to, title to, or interest in shall instruct the Executive Urban Affairs. the property of Canal Zone agencies and any Director on the Executive Board of the In­ By Mr. STAGGERS: real property located ln the Canal Zone; to ternational Monetary Fund to initiate a wide H.R. 10742. A bill to amend pa.rt I of the the Committee on Merchant Marine and consultation with the Managing Director of Interstate Commerce Act to provide that cer­ Fisheries. the Fund and other member country Execu­ tain provisions for the protection of railroad By Mr. HANSEN (for himself, Mr. MUR­ tive Directors with regard to encouraging employees shall be prepared by the Commis­ PHY Of New York, Mr. ZABLOCKI, Mr. the IMF staff to formulate stabilization pro­ sion in consultation with the Secretary of PATrEN, and Mr. NEAL) : grams which, to the maximum feasible ex­ Labor and shall be subject to subsequent re­ H. Con. Res. 468. Concurrent resolution tent, foster a broader base of productive in­ view by such Secretary; to the Committee on expressing the sense of the Congress with vestment and employment, especially in Interstate and Foreign Commerce. regard to the disposition by the United those productive activities which a.re de­ By Mr. STEERS: States of any right to, title to, or interest signed to meet basic human needs. H.R. 10743. A bill to a.mend title 5, United in the property of Canal Zone agencies and "(2) In accordance with the unique States Code, to make the birthday of Abra.­ any real property located in the Canal Zone; character of the International Monetary ham Lincoln a legal public holiday; to the to the Committee on Merchant Marine and Fund, the Secretary of the Treasury shall di­ Committee on Post Office and Civil Service. Fisheries. rect the U.S. Executive Director to take all By Mr. UDALL (for himself, Mr. En.­ possible steps to the end that all Fund trans­ BERG, Mr. GLICKMAN, Mr. MOTrL, and By Mr. MAGUmE (for himself and Mr. actions, including economic programs de­ MITCHELL of Maryland) : Mr. VANIK): veloped in connection with the utilization of H.R. 10744. A bill to provide for limited H. Con. Res. 469. Concurrent resolution Fund resources, do not contribute to the de­ public financing of congressional general to disapprove the determination of the Presi­ privation of basic human needs, nor to the election campaigns, to provide that candi­ dent denying import relief under the Trade violation of basic human rights, such as dates receiving public funds in Presidential Act of 1974 to the U.S. high-carbon ferro­ torture, cruel or inhumane treatment or de­ elections may accept certain contributions chrome industry; to the Committee on Ways grading punishment, prolonged detention and Means. and make increased expenditures, and for without charge, or other flagrant denials of other purposes; to the Committee on House By Mrs. SPELLMAN: life, liberty and the security of person; and Administration. H. Con. Res. 470. Concurrent resolution to oppose all such transactions which would By Mr. ULLMAN: expressing the sense of the Congress that contribute to such deprivations or violations. H.R. 10745. A bill relating to the year for coffee containers available for retail distri­ "'(3) In order to gain a better understand­ including in income certain payments re­ bution should be labeled to specify the per­ ing of the social, political and economic im­ ceived in 1978 under the A11;ricultural Act of centage of coffee which has been purchased pact of the Fund's stab111zation prograxns on 1949 and attributable to drought or other from Uganda; to the Committee on Inter­ borrowing countries, especially as it relates disaster in 1977; to the Committee on Ways state and Foreign Commerce. to the poor majority within those countries, and Means. By Mr. FRASER: the Secretary of the Treasury shall direct the By Mr. WAGGONNER (for himself and H. Res. 999. Resolution authorizing the Executive Director representing the United Mr. HOLLAND) : Subcommittee on International Organiza­ States to the Fund to prepare and submit, H.R. 10746. A bill to defer from income tions of the Committee on International not later than 180 days after the close of certain amounts deferred pursuant to State Relations in conducting its investigation of each calendar year, a report to the Congress. or local public employee deferred compensa­ Korean-American relations to require, by Such report shall evaluate, with respect to tion plans; to the Committee on Ways and subpena or otherwise, the attendance of any countries to which loans are made by the Means. person at the taking of a deposition by any Fund during such year, the effects of By Mr. WALSH: member of that subcommittee; to the Com­ policies of those countries which result from H.R. 10747. A bill to amend the Federal mittee on Rules. the standby agreement(s) on the ability of Food, Drug, and Cosmetic Act to reauire food By Mr. MURPHY of New York: the poor in such countries to obtain: package labels to disclose, in addition to H. Res. 1000. Resolution to provide for the (a) an adequate supply of food with suf­ other information required under law, the expenses of investigations and studies to be ficient nutritional value to avoid the de­ packing date and last sale date of the food; conducted by the Committee on Merchant bilitating effects of malnutrition; to the Committee on Interstate and Foreign Marine and Fisheries; to the Committee on (b) shelter and clothing; Commerce. House Administration. (c) public services, including health care, By Mr. WHITEHURST: education, clean water, energy resources, and H.R. 10748. A bill to assist former spouses transportation; of Federal employees in obtaining court-or­ (d) productive employment that provides dered payments; to the Committee on Ways PRIVATE BILLS AND RESOLUTIONS a reasonable and adequate wage." s. 2076 and Means. Under clause 1 of rule XXII, By Mr. WYDLER: By Mr. UDALL: H.R. 10749. A bill to provide policies, meth­ Mr. DORNAN introduced a bill (H.R. Page 3, line 11, after the word "authorized" ods, and criteria for the acquisition of prop­ 10750) for the relief of Surip Karmowiredjo, insert "for the two-year period commencing erty and services by executive agencies; to which was referred to the Committee on the October 1, 1978, and ending September 30, the Committee on Government Operations. Judiciary. 1980." By Mrs. HECKLER: Page 4, lines 20 through 23, strike the por­ H.J. Res. 712. Joint resolution to author­ tion of the sentence beginning ,on line 20 to the proviso on line 23 and insert in lieu ize the President to call a White House Con­ AMENDMENTS ference on the Arts; to the Committee on thereof the following: "There are authorized to be appropriated an amount not to exceed Education and Labor. Under clause 6 of rule XXIII, pro­ $1,500,000 for fiscal year 1979 and an amount By Mr. HANSEN (for himself, Mr. posed amendments were submitted as not to exceed $1,500,000 for fiscal year 1980 MURPHY of New York, Mr. MICHEL, follows: to carry out the provisions of this Act:".

EXTENSIONS -OF REMARKS AMERICAN POLICY IN RHODESIA that is an affront to the American peo­ have been proceeding well and there is ple. every likelihood that if left alone they HON. HARRY F. BYRD, JR. The State Department, which has will soon come to agreement. However, our State Department is OF VIRGINIA proudly boasted of its concern for ma­ jority rule in southern Africa. has been making every effort to see the negotia­ IN THE SENATE OF THE UNITED STATES pursuing a policy which may very well tions fail. Thursday, February 2, 1978 spoil the chances for a peaceful transi­ The reason for this is that our State Mr. HARRY F. BYRD, JR. Mr. Presi­ tion to a true majority rule in Rhodesia. Department is supporting a group of dent, the United States has been pur­ Negotiations between the white gov­ Marxist terrorist who want to ta!{e over suing a policy with regard to Rhodesia ernment and black Rhodesian moderates Rhodesia by violence. 2144 EXTENSIONS OF REMARKS February 2, 1978 I am pleased to note, however, that a who now seem on the verge of negotiating Mr. Smith and the black moderates are to a growing number of Americans are rais­ an internal peace in Rhodesia. . - peace settlement and a new constitution. As ing their voices in protest as they be­ This, we say, is what would probably hap­ noted by Morley Safer on the CBS program pen if the complexities of t he issue were "60 Minutes" Sunday evening, Rhodesia is come aware of the travesty of current understood. Unfortunately, they are not. It one of the few funct ioning biracial societies American policy .in southern Africa. is not widely understood that after years in Africa. It is not a police state. Its segre­ This week important editorials were of international clamor, Prime Mirrister Ian gationist policies are disappearing. The army published in the Richmond Times-Dis­ Smith has conceded the principles of uni­ and police are predominantly black, and, so patch and the Washington Star con­ versal suffrage and majority rule. It is not organized, can hardly be account ed depend­ cerning this matter. I ask unanimous widely understood that, in response to this, able instruments of white tyranny. consent that they be printed in Exten­ three moderate black leaders-who are In bit ter truth, the Anglo-American pol­ thought by informed observers to represent icy on Rhodesia seems to be influenced not sions of Remarks. a considerable majority of Rhodesian only by dubious strategic calculations, but There being no objection, the editorials blacks-have negotiated with Mr. Smith a also by an uncharacteristically petty­ were ordered to be printed in the RECORD, new constitution providing for assured minded British resentment that Rhodesia as follows: "minority" representation (i.e., largely white) has made a success of unauthorized inde­ [From the Richmond Times-Dispatch, in parliament; a bill of rights; an independ­ pendence. Against all odds and predictions, Jan. 30, 1978] ent judiciary; and other institutional ar­ Rhodesia has become a country in being. It rangements that seem fair and workable. It needs only the support of the outside world REALLY, MR. VANCE? is not widely understood that this "internal" to make reasonable democrat ic terms with In a recent preview of foreign policy de­ breakthrough, proceeding from Mr. Smith's the black majority. c1s1ons for 1978 Secretary of State Cyrus concession of universal suffrage, is on the That the U.S. might not only neglect but Vance spoke in glowing terms of the Ameri­ verge of consummation if it is not derailed actually undercut this success is an offense can effort to bring about solutions to the by the foot-dragging of U.S., British and UN to sense and conscience. Let us call a halt difficult racial problems of Rhodesia and officials, who seem to think the black negoti­ to this foolish policy-now. Sou th Africa. ators should hold out for tougher terms. Declared Mr. Vance : " ... we are among Finally, it is not widely understood that the few governments in the world that can the U.S. is closely identified with the un­ talk to both white and black Africans frankly, yielding terrorist-guerrilla "front" led by CONGRESSIONAL BLACK CAUCUS and yet with a measure of trust." Joshua Nkomo and Robert Mugabe, which LEGISLATIVE AGENDA That is a remarkable assertion to come is armed by the communists and supported from the head of a department that has dis­ by the five neighboring "front-line" African paraged the current negotiations in Rho­ states. HON. PARREN J. MITCHELL desia between the white governmental The peace terms of these "external" forces leaders and black moderates. The talks are are extreme. Although Mr. Nkomo has made OF MARYLAND aimed at transferring political power to the occasional noises of moderation, Mr. Muga­ IN THE HOUSE OF REPRESENTATIVES black majority without bloodshed. Here are be recently threatened to "bash" an the Thursday, February 2, 1978 whites and blacks sitting down togeth-er at "reactiorm.ry" participants in the internal a conference table to try and settle their negotiations: a threat that may happily Mr. MITCHELL · of Maryland. Mr. differences, but the State Department wants prove idle if peace comes to Rhodesia and Speaker, I am inserting into the RECORD none of it. his guerrilla troops begin to melt away. the Congressional Black Caucus legisla­ Mr. Vance's puffery about the administra­ Meanwhile, the Nkomo-Mugabe faction in­ tive agenda for the 2d session of the tion's ability to communicate with both Gists that Rhodesia's future must be settled 95th Congress. This is the fourth formal white and black Africans is all the harder between Great Britain (whose crown colony to swallow because of his department's de­ Rhodesia was before declaring its independ­ legislative agenda presented by the Cau­ nial of visas late last year to three black ence unilaterally in 1965) and their "Pa­ cus, and it defines the primary legislative tribal leaders from Rhodesia who wished to triotic Front," whose "patriotic" activities goals for 1978 for the caucus and for visit the United States. The three are mem­ consist largely of the ruthless murder of many persons who look to us for leader­ bers of the Zimbabwe United People's Or­ women, children and the elderly, mostly ship in the national policymaking proc­ ganization, which supports the current talks black. They insist that Ian Smith be de­ ess. We hope that each of our colleagues, in Salisbury. But that does not mean ZUPO posed, and that they, the intruders and dis­ and many others throughout the Nation, is a Rhodesian "Uncle Tom" outfit that turbers of the peace, be handed immediate control of the army and the police. In short, will look closely at the objectives and favors continuation of white rule. Quite to legislative proposals set forth in the the contrary, ZUPO is seeking the reins of they demand capitulat ion by the Rhodesian power for itself. But by peaceful means. moderates; and they indicate no willing­ agenda and will lend us their support ness to compromise. during the coming year. What makes the current black-white nego­ What is perverse about the U.S. position tiations and the activism of moderate Rho­ This year, the Congressional Black is that the closer Ian Smith and the black Caucus' primary legislative agenda item, desian blacks so unpalatable to the Depart­ moderates come to an agreement, the more ment of State is that they exclude the black cozily we seem to collaborate with the U.S.­ as it has been for the past 3 years, is nationalist who are fighting the white gov­ British-UN cabal to undermine it. The Econ­ passage of the Full Employment and ernment from bases outside Rhodesia using omist's Salisbury correspondent reported, on Balanced Growth Act

HOW WILL THE HUMPHREY-HAWKINS BILL maximize private employment opportunities, Union and Dr. Gar Alperovitz of the Explora­ ACHIEVE FULL EMPLOYMENT? and only those persons who remain unem­ tory Project on Economic Alternatives. The Each day, the Federal government makes ployed will be employed on Federal public Full Employment bill, itself, provides seven thousands of decisions which affect the jobs programs. steps to control infiation, including strong number of jobs which will be created in the WHAT JOBS WILL THE UNEMPLOYED TAKE? antitrust law enforcement and other action to increase competition in the private sector. private economy. Some of those decisions are The double harm done by the high un­ large decisions with great impact, such as Currently, it is being suggested that 6 per­ employment rate is that those who desire cent unemployment is comparable to what tax increases or decreases, the setting of in­ work cannot find jobs, and that great phys­ terest rates, the level of federal spending, 4 percent unemployment used to be, and that ical and social needs of the nation in hous­ perhaps we ought to accept such a goal. amounts of federal dollars going to different ing, health, food production, energy, educa­ geographic areas and to different sectors of Humphrey-Hawkins rejects this idea as both tion and many, many other areas remain uneconomic and immoral. The bill and its the economy. Includea are subsidies, grants, unmet. It is a tragedy that those who want loaru. gu~rantees , and outright contracts to supporters reject the position that our econ­ to work are not matched up with the work omy requires a high unemployment rate to provide goods and services. that needs to be done. While this may sound For example, if a certain program distrib­ operate properly. Expanding job opportuni­ utes money to every city and town in the like a simple concept, the essence of the ties in general and targeting programs to country, regardless of the unemployment problem is that the match is not made and specific groups at the same time is the only level, a smaller percentage of the money is that human resources have not been co­ way in which the goals and ultimate objec­ likely to be used to create jobs than if all ordinated around priority needs. Economic tives of full employment properly defined the money went to cities and rural areas decisions have not brought together the un­ can be achieved. with high unemployment. employed and the necessary work to be done within these national priorities. WHAT ABOUT CRITICISMS OF THE BILL? A decrease in interest rates may result in "It would be a mistake to regard Hum­ greater borrowing and investment in indus­ WHAT GROUPS DOES THE BILL HELP? phrey-Hawkins as a legislative paper tiger. tries which will produce more jobs. A tax As a national economic policy bill, the .. . Carter's acceptance of Humphrey­ decrease for certain income groups might Full Employment and Balanced Growth Act Hawkins, which Congress will probably pass stimulate spending resulting in more goods is aimed at improving the conditions for all early next year, puts the nation's unemploy­ being produced and more people hired to people in the country. Its basic, underlying ment problem squarely at the center of eco­ produce them. premise is that the economy has not operated nomic policymaking for years to come. . . . " The major economic powers of the Federal to full capacity, and an economy operating So said the respected business magazine government consist of fiscal (taxation and at full capacity will improve conditions for Business Week, November 28, 1977, in com­ spending) and monetary (money supply and all persons. menting on the Full Employment bill agreed interest rates) policies. Th'?se have generally The bill, of course, will specifically benefit to between the President and the bill's pro­ been used to stimulate aggregate demand or the unemployed-not just minority un­ ponents in Congress and outside. purchasing power. employed, but all the nation's unemployed. There have been two major criticisms of Often these powers have not been used It puts the full weight of the Federal govern­ the bill: That it will lead to higher infiation effectively, resulting in recessions and infia­ ment and the laws and policies of the United and that it is weak and ineffective. These are, tion. Since 1969, for example, the Federal States behind creating jobs for the un­ of course, contradictory assertions, and the government has deliberately followed a pol­ employed. bill cannot be both at the same time. The icy of maintaining high unemployment as a inflation argument was answered in the last means of fighting inflation despite the fact The Full Employment Act is very explicit about reducing and eliminating the em­ section. that no evidence indicates inflation is caused As for the argument that the bill has been by too many people working, but just the ployment gap for groups with unusually high unemeployment rates. These are primarily weakened in the negotiating process with the opposite. President, the answer is simply that while The Humphrey-Hawkins bill prohibits such minorities, young people and women. Among the methods for actieving these goals are the bill now gives the President and Congress a trade-off and requires that the means used fiexibility as to the exact methods and pro­ to reduce unemployment and infiation must targeted training programs and a strong non-discrimination provision. grams to be used to achieve lower unemploy­ be mutually self-reinforcing. For example, ment goals, it continues to require them, by putting people to work producing goods in WHY HAVE THESE GOALS NOT BEEN ACHIEVED? force of law and national policy, to use every short supply or in skills where shortages HOW WILL THE BILL HELP? effort to reach those given unemployment exist both reduce costs and prices as well as If full employment is a desirable goal, goals and timetables and ultimate full em­ unemployment. It is also true that ending many ask, why has the government not un­ ployment. discrimination against women, minorities dertaken the policies to achieve full employ­ The bill requires that the President's an­ and our aged would increase production and ment in the past? The answer is first that nual Economic Report spell out proposals to employment and decrease inflation. th"e Federal government has failed to fully reach full employment and interim unem­ The Humphrey-Hawkins bill, by requiring­ coordinate the large number of programs ployment goals. the President to present a plan directed at and policies which affect employment be­ The bill requires that the main elements of reducing the unemployment rate to a specific cause these were created individually and are the President's budget support the full em­ level in a specific time period would require responsive to fragmented authorities. Sec­ ployment goal. by law that all of these economic decisions ond, there are always competing political The bill requires incorporating key national which take place each day would be directed and economic pressures which move decisions priorities in the program for full employ­ toward the primary goal of reducing unem­ away from those policies which maximize ment. ployment. employment. The bill requires that the last resort Jobs There is one additional aspect to the means There is one very important point to be be made available to reach the stated goals if by which full employment will be achieved, after two years other economic policies are and it is one that is frequently misunder­ made on competing economic interests. Some have suggested that significantly re­ not succeeding in moving the nation to the stood when the bill is discussed. To the ex­ goals. tent that the types of economic policies men­ ducing unemployment would necessarily re­ sult in inflation. There are three answers to The bill requires the use of tools such as tioned above do not reduce the unemploy­ training and counseling programs, youth em­ ment rate to the levels required in the bill, this contention: (1) there is substantial evidence that this would not take place; (2) ployment programs and other microeconomic the President must develop programs to reach tools to attain the goal. the goal. This includes so-called "last resort" the bill provides strong anti-infiation pro­ tections: (3) our economy does not require The bill requires the Federal Reserve Board jobs. These are jobs funded directly by the to transmit to Congress its intended pol­ Federal Government where employees per­ high unemploym-ent to operate properly, as the theory suggests, and economic policies icies for the year ahead and their relation­ form public services which result in the gen­ ship to the short-term goals in the Presi­ eral betterment of the community. Jobs can be found to achieve low unemployment and low inflation simultaneously. dent's Economic Report. under the Comprehensive Employment and What the current version of the bill does Training Act (CETA) and other manpower "Stagfiation" is a word which has been that it did not do in the vast is to allow programs are such public service jobs, and used more and more. It describes the situa­ the President to set forth the proper mix expansion of these programs is one means by tion of high unemployment and high infia­ of these policies and programs to achieve which additional last resort jobs might be tion, which presently exists. This contradicts the goals. But the law would require that created. The bill permits the last resort jobs the notion of some economists that high un­ the goals be met. That is not weakening the employment will control inflation. It is part to be instituted only after two years follow­ bill; it is merely providin~ fiexibility as to ing the bill's passage, but the President can of the evidence that has been cited by such how the goal is achieved, not whether it expand existing programs at any time with distinguished economists as Dr. Leon Keyser­ should be achieved. congressional agreement. ling, former Chairman of the Council of Eco­ These arguments have been made by the The confusion has been that many persons nomic Advisers, Dr. Robert Browne of the bill's authors, Con.,.rec:cmAn Au~pc:tus H<\w­ have seen the Humphrey-Hawkins bill as Black Economic Research Center, Professor kins and the late Senator , simply a bill to create government paid jobs. Robert Lekachman of the City University of and by its major proponents, and their va­ In fact, as has been shown, it is a bill to New York. Gus Tyler, Assistant President of lidity has been affirmed by some of the major require by law that Federal policies work to the International Ladies Garment Workers economic commentators in the nation. The 2150 EXTENSIONS OF REMARKS February 2, 1978 chief economic correspondent for the New No one, that is, except the Postal Rates for third-class regular rate York Times, A. H. Raskin, wrote that : Service. advertising mail have jumped at least "The Humphrey-Hawkins bill is much I have spoken many times of the prob­ more than a palid extension of the Employ­ 83 percent since 1971 and will go up even ment Act of 1946. If enacted next year in lems facing the Postal Service and its further in May of this year. anything like its present form, it will estab­ patrons. Constant financial crises have The average 2-pound book could be lish targets tor economic activity and Jobs eroded public and Congressional confi­ mailed for 18 cents in 1971 and is now involving a degree of specificity the nation dence in the Postal Service. Employee being mailed for about 40 cents. In 1979, has never known before." (November 20, morale seems to hit a new low every day. that price will go to 73 cents. 1977). Electronic communications has thrown This would not be so alarming if rates The chief economic writer for the Wash­ into serious question the very future of were simply catching up to true postal ington Post, Hobart Rowen, made the same point: the Postal Service. costs. But, as the participants in the "There is much more than meets the eye Now, however, we are facing a new and symposium graphically demonstrated, in t:q.e compromise Humphrey-Hawkins potentially dangerous situation, the di­ current and proposed rates are so high, "full employment" bill ... the vigor of the version of large quantities of mail not that it is fast becoming more feasible to attack on this latest Humphrey-Hawkins covered by the private express statutes deliver privately in many areas. The version should suggest to the careful ob­ into alternative sources of delivery. Postal Service may be pricing itself out server that the proposal would, in fact, have Since we would still be required to of existence. an impact on the economy and the way economic policy ls made .... Complying with maintain an extensive postal system to Here are a few examples: the timetables would not be optional. . . . service first-class customers, those cus­ An official of Better Homes and Gar­ The Humphrey-Hawkins bill, as it emerges tomers would be socked with a whopping dens said that their objective was to have now, with Carter's cooperation, is worth­ bill far in excess of the increases suffered 60 percent of the magazines delivered while." (November 17, 1977) . so far. privately. Tests in Kansas City showed The respected Black journalist, Carl Ro­ It is convenient to say that those who that Better Homes and Gardens could wan, made the same point: be delivered for a net cost to the maga­ "It does something very important: It use first-class mail are really subsidizing establishes the right of all Americans to a other, less expensive, classes of mail. zine of 1 cent a copy by piggybacking useful job at fair waiges. We have never This is a vast oversimplification which, adv'ertising circulars-a double threat to before had such a specific national com­ if totally accepted, could lead to even the Postal Service. mitment.. . . You ought to understand what more substantial increases in first-class Daily newspapers now have the capa­ I am sure understands: While rates. The average postal patron is being bility to deliver privately to 90 percent the compromise gives the President some misled if he or she believes that reason­ of the homes in the country. This net­ flexibility, he cannot change the 4 percent able postal rates can be maintained if work could also be used by many other goal without Congressional agreement .... I hope the Congress passes the Humphrey­ some of the less expensive classes of mail present customers of the Postal Service. Ha wkins blll." (Washington Star, November are dropped. Regular rate second and A model system developed by promi­ 21, 1977). third-class mail provide valuable addi­ nent economists indicates that it is now The Congressional Research Service of the tional income. Loss of this income would possible to deliver some high circulation Library of Congress, in an analysis of changes not be offset by commensurate declines magazines and newspapers in densely made in the b1ll through negotiations be­ in costs-unless substantial service re­ populated areas for from 1.5 cents to tween the President and blll's sponsors, ductions are instituted. This leaves only 7 cents less than the Postal Service. said: one person to pick up the tab either Tests of alternative delivery for books "A close review of the January 1977 ver­ through increased mail rates or through indicate that private delivery could sion of the Humphrey-Hawkins bill and the even greater subsidies. deliver a 2-pound book over long dis­ November 1977 version indicates that very few changes have been made to the major However, postal rates have been so tances for 67 cents-which includes both provisions of the bill." (November 18, 1977). greatly increased during the past 7 drop shipment and local delivery. In July A Business Week magazine editorial sum­ years for third-class (advertising mail) of this year, the Postal Service costs will med it up, "There should be no doubt that and second-class ss serves as middleman in this process, the Postal Service to the President and Chinese were big in Saigon," said one official reconciling the Taiwan list with a list of peo­ to· Congress. It is a realistic approach who spent some time in Vietnam before 1975. ple Vietnam is willing to let go and charter­ and I strongly urge the positive and vocal "They had ROC [Republic of China] schools ing the flights from Saigon to Bangkok. support of my colleagues. I would also and handed out all those ROC passports. Now Relief officials say there are enough names they're saying all those papers are worth­ cleared now to fill one or two more filghts, urge every Member of the House who is less." but Taiwan is again delaying the scheduling concerned about the future of the Postal of a pickup fiight from Taipei. Service to convey that concern to the In the past two yen.rs, Taiwan has issued entry permits to 892 Chinese residents of Francis Amar, head of the Red Cross dele­ President. Vietnam. In almost every case the permits gation in Bangkok, declined to comment on U we don't act soon, we might not have have come through appeals from relatives charges of Taiwan footdragging in the pro­ a Postal Service to be concerned about. already living in Taiwan where 16 million gram. He said he did not expect Taipei to lib­ people enjoy one of the healthiest economies eralize its entry policy but thought there in Asia. Relief officials say authorities in the would be another filght "in the not too dis­ Taiwan capital of Taipei have dragged their tant future." He said he could not speculate TAIWAN GOVERNMENTSHOULD feet in arranging flights for even these rela­ when that would be. HELP ITS CITIZENS tively few Saigon Chinese. The Vietnamese, eager to get rid of people they consider troublesome foreigners, have in contrast pre­ HON. PAUL SIMON sented few problems. U.S. FARM POLICY OF ILLINOIS Some Chinese have been told they have IN THE HOUSE OF REPRESENTATIVES seats on the special fiights from Saigon to Taipei through Bangkok. They have sold HON. RICHARD NOLAN Thursday, February 2, 1978 their belongings to ease the journey, and OF perhaos to pay off whatever bribes Vietnam­ IN THE HOUSE OF REPRESENTATIVES Mr. SIMON. Mr. Spe:!ker, I have been ese officials have extracted. Then they have one of those who has stood on this floor suffered as the Taipei authorities have de­ Thursday, February 2, 1978 and said that we must not turn our layed the fiights, relief officials say. Mr. NOLAN. Mr. Speaker, one of the backs on our friends on Taiwan. I have Taiwan authorities say publicly they can featured speakers at last week's Con­ also long advocated diplomatic recogni­ not process the Saigon Chinese appllcations sumer Federation of America's national tion of the People's Republic of China. for entry permits because they are living in a assembly held here in Washington was But our friends on mainland China communist country without diplomatic ties to Taiwan. Privately they express the fear our colleague, TOM HARKIN, of Iowa. should understand that while we stand TOM HARKIN represents the eighth ready at any point they desire to have that some Chinese from Vietnam might be spies or pose too great an economic burden most rural congressional district in the mutual diplomatic recognition, it will on the island . Nation. As chairman of the House Sub­ . not be at the expense of a loss of recog­ None of this stops the official Taiwan news committee on Family Farms and Rural nition of the Government of Taiwan; agency from regularly lamenting the plight Development, I have come to know ToM not a denial of a treaty that we have of people living in China or Vietnam, or from HARKIN to be an able and effective signed with Taiwan. vigorously protesting when governments like spokesman for the Nation's family Having said that, which I hope estab­ Hong Kong enforce regulations to stop the farmers. lishes my credentials for friendship to infiow of illegal refugees from communist the Government on Taiwan, I did read neighbors. TOM HARKIN rejects the age-old rhet­ with regret the story in the Washing­ "For the sake of humanity," said Taiwan's oric that somehow farmers and consum­ ton Post titled "Taiwan Reluctant To Ac­ Free China Relief Association in a recent bul­ ers are natural enemies. "They are not," cept Its Citizens From Vietnam." letin, "the Hong Kong government should al­ he told the consumer assembly. "They I am having that printed in the low the Chinese freedom seekers to stay in are natural allies." Hong Kong or let them leave for other free In his remarks he outlined an agenda RECORD for my colleagues in the House countries." and· Senate to read. I do so because we for dealing with the common problems "How can they broadcast complaints on shared by family farmers and consumers, have a special responsibility for the the morality of Hong Kong, when they turn tragedy of Vietnam. their backs on their own documented citi­ including a call for some sweeping I hope that our friends on Taiwan will zens," asked one relief official here. "Sure changes in U.S. farm policy-most no­ reconsider the action they have taken. the Chinese in Saigon are angry, but what tably, a call for a graduated farm pro­ (From the Washington Post] can they do?" said a relative of Wong, the gram to concentrate the Federal Govern­ teacher. The relative asked that Wong's real ment's help on those who need it most­ TAIWAN RELUCTANT TO ACCEPT ITS CITIZENS name not be used in order not to prejudice small and average sized family farmers. FROM VIETNAM what slim chance she might still have of (By Jay Mathews) I commend his remarks to the atten­ leaving Vietnam. tion of my colleagues: HONG KONG.-Wong Mei-Ian, a 27-year­ "If the overseas Chinese in Vietnam go to old teacher living in Saigon, is a citizen of countries in the free world, ROC representa­ SPEECH BY REPRESENTATIVE TOM HARKIN Nationalist China, according to the passport tives can process their applications," said an Thomas Jefferson, himself a farmer and given her in 1974 when Taiwan was promot­ employee of the Overseas Chinese Affairs farm innovator, once described farmers as ing its image in Vietnam's Chinese commu­ Commission in Taiwan. No one can legally "the chosen people of God." He went on fur­ nity. leave Vietnam without valid entry permits ther to say they had "a special character Now, reduced to basic rations and denied to another country, however, and illegal es­ based on substance and genuine virtue." a regular Job since the communist takeover cape remains difficult. Wong once traveled to Like most of our founding fathers, Jeffer­ in 1975, she would like to exercise her rights the coastal city of Wungtau in an escape at­ son believed very deeply in a system of agri­ and move to Taiwan. The Vietnamese have tempt. She just missed arrest when her com- culture, based on family farms. 2152 EXTENSIONS OF REMARKS February .2, 1978 That base had more than just symbolic The farmer's share of the retail price has Without nitrates, the meat would taste importance to them . . . for as long as not changed . . . and remains the same just the same, would remain fresh nearly as Americans could chart their own destiny and at 70 cents per pound. long, but it would not appear so red. That's build their own prosperity as independent In the past five years, the retail price of the only difference. family farmers and land owners .. . Amer­ USDA's Market Basket of Food has increased The evidence now suggests nitrates may icans would remain free. by 19 per cent. be carcinogenic. Many things have changed in this nation The farmer's share of the retail price has Consumers are understandably concerned since then. decreased by 5.6 per cent, during the same about that. There's talk of banning them But perhaps no other change that has time. from the market. taken place since that time would surprise Yes, food prices are rising. Pork producers, who supply bacon, which them as much as the change in our agri­ But not because of the farmer. Due to fall­ is usually treated with nitrates by the proc­ culture system. ing farm prices, fewer and fewer of our food essors, are understandably concerned about The answer to the question : "Who shall dollars are going to the farmer. that. cont rol agriculture?" is not as easy to an­ And due to inflation on the goods he con­ So here's another area where farmers and swer in our day as it was in theirs. sumes . . . the farmer is having a hard time consumers' interests come together. Then the answer was simple: family farm- holding on to those few dollars that are We the consumers don't like chemicals and ers shall control agriculture. reaching him, because of higher production other junk added to our food. And I can tell Tod11y, our generation must decide : costs. you family farmers don't like it either. They Will it be the agri-business corporations? In the past five years, the price farmers don't like middle-men to add them, and they An agriculture system based on absentee were paid for wheat dropped 49 per cent. don't like adding them themselves, as pesti­ land ownership? The price they were paid for corn dropped cides and herbicides. Will our system of agriculture be based on 17 per cent. But right now, the system demands it. absentee land ownership? The price they were paid for beef cattle We've got to change this system. Or will it be based on a great many farms, dropped 5 per cent. With farmers and consumers working to­ owned and operated by the independent The price they were paid for hogs went up, gether, we can do that. families who live on these farms? by only 2 per cent. We must let processors and the Depart­ As a member of the House Agriculture During the same past 5 years; ment of Agriculture know that we don't want Committee .. . and its Subcommittee on The price farmers paid for a medium sized chemicals added to our food. Family Farms ... these are questions I face tractor went up from $13,700 to $26,300 ... For many years the research service of the every day. up 92 percent. Department of Agriculture has promoted And as a Member of those committees, I The price they paid for a medium sized greater use of chemicals in growing food. At want to take this opportunity to thank the combine went up from $17,600 to $36,100 . . . the time it seemed alright to most people. Consumer Federation of America for the an increase of 10 per cent. Most chemicals are derivatives of petro­ thoughtful and well documented testimony The price of a new-five bottom plow went leum .. . and oil was very cheap. it provides as we consider these questions. up from $1,920 to $3,900 .. . up 103 percent. The property of carcinogens were little un­ As the Representative of the 8th most The price for one-ton of fertilizer went up derstood and were hard to detect. rural Congressional District in the nation from $92 .50 to $170 ... up 84 percent. But now there are two good reasons why ... and as the Representative of thousands The price farmers paid for a bushel of seed we must change the focus of the research of family farmers ... I also want to take corn went up from $23 to $39.50 ... an in­ service. The cost of chemicals has skyrock­ this opportunity to thank the Consumer crease of 72 percent. eted, and our testing procedures for detect­ Federation of America for its strong and en­ If you think you've had problems with in­ ing carcinogens is much better . . . and thusiastic support of legislation favoring the flation go talk to a farmer. again in most cases, these chemicals are choice of a system of agriculture based on Our food costs, according to the USDA, are highly carcinogenic. many farms, owned and operated by the up by about 19 percent in the past five years. So we can make a difference that way. families who live on them. The farmer's production costs, in most cases, There are other areas where farmers and Your opinions are respected. have at least doubled. consumers ought to get together and make And your support has made the difference With farm prices falling and retail prices that natural alliance work for them. on several crucial occasions. going up, it's often popular to blame the We can avoid some of the costs of con­ That support for family farms by the Con­ "middle-man"-to blame his greed. sumable food by encouraging more direct sumer Federation of America sometimes sur­ In many cases, that's probably true. marketing of food from the farmer to the prises people. But more often than not . .. the real consumer. Mostly, it surprises people who've "bought" enemy is us. Farmers and consumers know the more the age-old rhetoric that somehow farmers That's right . . . us, the consumer. farms we have, the greater the competition and consumers are natural enemies. We will continue to pay more for our in the market place. food-and farmers will continue to get a They are not, and in fact, they are natural , Yet in the last 25 years, the number of allies. smaller share of the food dollar-as long as we, the consumer, continue to demand exten­ farms in this nation has been cut by one­ Too often, we tend to talk about farmers half-down from 5.6 million to 2.8 million. as if they were just producers, and therefore, sive preparation, packaging, boxing, and gen­ eral adulteration of our food in the name of More direct marketing will help reverse this as if they had nothing in common with trend. consumers. convenience. We don't need to buy cheese, sliced and Farmers and consumers know that the fam­ But farmers are not only producers. individually wrapped in plastic. But we do, ily farmer is the best trustee for our life­ Most of what farmers use to produce their because it's easier to use. And we pay for it. sustaining soil resources. crops-except their own labor and manage­ ment abilities-they buy off the farm. We don't need to buy potatoes partially The large agri-business corporation or the cooked and sliced, or even mashed-so all we speculator from the city is more concerned They, too, are important consumers. have to do is add hot water- with immediate profits: tear down the wind They consume tractors, combines, plows, Bu t we do buy them that way, because it's breaks, plow up the pastures, cultivate the fertilizers, seed corn, cars, clothes, and gas hills, deplete the water table by irrigating . . . even food. easier . We've come to believe that if you can't dry lands, and after the profits are made and Inflation has taken a heavy toll on all "unzip the zip-lock" plastic bag, pop it in the the soil depleted they take their money to consumers. in the past five years. Its impact micro-wave oven, and eat it in a matter of another business venture. has, perhaps, been most noticeable on the minutes, it is somehow less desirable than I can tell you from experience that family nation's grocery shelves, in the retail price if we had to prepare it and cook it ourselves. farmers have a conservation ethic and agri­ of food. And we pay the price for that attitude, at the business corporations do not. But it has also had an impol"tant impact check out counter. Farmers and consumers know the family on those on-the-farm consumers, as well. Convenience packaging-that's one big farmer is the best hope for maintaining a Five years ago a loaf of bread cost 32 avoidable cost of food. In fact, in 1976, food strong rural community with profitable and cents. Today it costs 36 cents. The farmer's processing & marketing took about 60 cents independent family businesses. Yet today share of that retail price has dropped from of every dollar consumers spent on food. agri-business corporations own nearly 1/10 5.6 cents to 2.8 cents . . . down 50 per cent So we pay at the check out counter-and of the nation's farm land and account for . . . in the same period. the evidence is mounting that we pay in 1/ 5 the nation's farm produce sales. Five years ago, a 12 ounce box of corn­ other ways, too. Farmers and consumers know that if the flakes cereal cost 35 cents. Today, it costs For years we consumers have demanded the family farm system is to remain viable, young 57 cents . .. up 63 per cent. meat we buy in the grocery stores be bright people must be able to enter farming. Farm The farmer's share of that retail price has red. So processors have filled their fresh land must be available to them at prices they dropped from 4.2 cents to 3.2 cents .. . meats with nitrates, which make them bright can afford. down 24 per cent. red. But the price of land is skyrocketing. Farm Five years ago the average retail price for They have minimal, but some preservative land in my area of Iowa which 4 years ago pork was $1.16 per pound. Today, it is $1.28 qualities. The major thing they add to the sold for $600-$800 an acre is now selling for per pound. meat is a bright red color. $1800-$2500 an acre. February 2, 197.8 EXTENSIONS OF REMARKS 2153

Land that does come up for sale now is wouldn't have the use of government money ment of expenditures for social services. being purchased by established farmers. to make his expansion purchases. The bill was referred jointly to the Com­ Farm enlargements by these established With the high cost of farm land, and farm farmers now account for 63 percent of all equipment, the young farmer faces almost mittees on the Judiciary and on Ways farm land purchases. impossible capital requirements. We must and Means, and has also been introduced The average age of the nation's farmers help him meet his capital needs. by our distinguished colleague JAMES C. is in the mid-50s. One way would be low interest, long term, CORMAN (H.R. 10511). The size of the average farm has increased deferred payment, loan program to help the These States have been engaged in a by 81 percent in the last 25 years. new farmer get started. long dispute with the Department over Finally, farmers and consumers know if We must discourage absentee ownership of claims for reimbursemnt of expenditures we are to have any family farms at all, a farm land. family has to be able to make a living at it. Absentee owners currently buy one-fifth to for social services provided by the States Yet the purchasing power of farm in- one-fourth of all farm acres that come on prior to October 1, 1975 under various come ... currently at 64 percent of par- the market. Often buying as an investment, titles of the Social Security Act. Close to ity .. . has not been lower since March 1933. they drive the price of farm land even higher. $3 billion of claims are in dispute, of Total net income for farmers in the United That raises further the amount of money which over half represents claims on file States in 1977, was $10 billion less than it was needed to start farming, and increases the with the Department but not paid. four years ago. property taxes due for all the near-by farms. After months of negotiations, the De­ Each dollar of net cash farm income in Absentee owners reduce the number of 1977 supported over $8 in debt. Four years acres available to young people who want to partment of Health, Education, and Wel­ ago, each dollar in net cash farm income sup­ begin farming. And they add nothing to their fare and the States have reached agree­ ported only $2.50 in debt. ne.u-by communities, as they do little to ment on a settlement of these claims. Total outstanding farm debt on January 1, support the local demand for goods and serv­ Virtually all States have agreed to accept of this year, was estimated at $187.7 bil­ ices. the settlement, which provides for pay­ lion ... double the debt load of farmers on We can discourage absentee ownership ment of up to $543 million. Under the January 1, 1972. through our tax laws. agreement, the Department would also Farmers not only know this, they feel it. Income from farm land owned by people terminate all efforts to recover funds And that is why you have seen thousands of who do not live and work on it, should be farmers in Washington and state capitols taxed at a higher rate ... it should be taxed previously paid and the States would throughout the country demand better prices on a progressive scale, so the absentee owner make no additional claims for Federal for their products and threatening not to cannot recover those higher taxes, simply by funding for this period. plant if they don't get it. charging his tenants more rent. Our tax On October 5, 1977, Secretary of But I also wanted to make sure that you, laws should be written to make it more Health, Education, and Welfare Joseph the leaders of the Consumer Movement in profitable to work farm land, rather than to America also know it. The time has come to hold on to it as an investment, waiting for A. Califano, Jr. issued a statement de­ build an alliance between those farmers you appreciation to provide profit. scribing the agreement and I ask that see on the streets of Washington and con­ Another way is through utilization of the it be printed at this ~oint in my remarks, sumers in the cities. Together we can have an so-called Saskatchewan Plan or perhaps a together with a list of the proposed set­ impact. But apart, we will still te at the plan recently enacted in the State of Min­ tlements by State. mercy of the forces which have brought us nesota. This is a plan whereby the govern­ This settlement ends many years of to our present situation. ment would purchase land on the open mar­ What then should be our agenda, and ket and then sell it to qualified young people discord that has already produced ex­ what needs to be done to strengthen our who want to enter farming. tensive and burdensome litigation. It will family farms? There would be no payments on principal prevent what promises to be several more As I ment:.oned earlier, we must encourage for the first several years or so, and then years of struggle in administrative and more direct marketing from farms to con­ the payments on principal would increase court proceedings. The settlement is a sumers. Consumer cooperatives which buy in and balloon at the end of 20-30 years. compromise, but I believe its terms are volume from the farmer should be encour­ I understand that Saskatchewan has had reasonable and fair to both sides. aged. Farmers markets should be encouraged. a great success with this plan and that a It is time to bring this long controversy Consumers will pay less, farmers will make modified version is working well in more, and the quality will be better. Minnesota. to an end, for its continuation can only But first and foremost, we must work for a These tasks will not be easy. serve to exacerbate Federal-State rela­ new attitude in the Department of Agricul­ But they must be done, if we are to pre­ tions and interfere with the proper func­ ture and in Congress. We must have a new serve the family farm structure this nation tioning of crucial welfare programs. approach to our farm program and farm leg­ was founded upon 200 years ago. Moreover, the States involved have an islation. Farmers, alone, cannot achieve them. One of the great errors 0f the pa.5t. is that urgent need for the additional Federal And neither can consumers. funds that would be received. our farm policies have treated all farmers as But by joining together, and working to­ if they were alike. wards common goals, I think we can win Mr. Speaker, a number of our col­ All farmers are not alike. the battle. leagues have already indicated to me Not all farmers need federal government I hope-and I believe we are-entering a their desire to cosponsor this legislation, help. new day when farmers and consumers are so I plan to reintroduce it and would And not all farmers should have it. recognizing they share a number of common There is no reason whv a farmer with over welcome additional cosoonsors. It is my goals . . . and when they are realizing they hope that we will be able to obtain early a million dollars in equity and sales over can only reach them, with each other's help. $200,000 a year-be he an individual or a cor­ No single other development could be more consideration of this essential legislation poration-should receive the same price pro­ important for either the future of the family and see it enacted before this Congress tection from the federal government as a farmer, or the American consumer. ends. small family farmer who genuinely needs And I thank the Consumer Federation of STATEMENT BY JOSEPH CALIFANO, JR., SECRE­ that protection to stay in business another A. America for leading the way. TARY OF HEALTH, EDUCATION, AND WELFARE year. We ought to have a graduated farm pro­ We have reached an agreement to settle the gram ... just like we have a graduated in­ largest financial dispute between the Fed­ come tax. SETTLEMENT OF STATE CLAIMS eral government and the states. The agree­ As the farmer gets larger, the amount of AGAINST HEW ment involves payments to 28 states for the government supports and guarantees should cost of social services provided to low in - decrease. come families and individuals from 1969 to Such a policy would concentrate our help HON. PETER W. RODINO, JR. 1975. on those who need it most, and end it for OF NEW JERSEY Under the agreement, 19 states will receive those who don't need it at all. IN THE HOUSE OF REPRESENTATIVES Federal payments totaling $532 million and We must work for a new emphasis in the 22 states (13 of them also members of the Department of Agriculture, and in Congress, Thursday, February 2, 1978 group of 19) will have Federal government on helping the young person start farming. Mr. RODINO. Mr. Speaker, recently I claims against them dropped. A graduated farm program would help in The action, contingent upon the approval this effort. It would stop government sub­ introduced a bill seek a compromise in this matter, instead of 5 years. The Commission is a temporary, extends the Commission's existence for permitting it to drag through the courts for independent, bipartisan agency estab­ an additional 5 years. Section 5 would years. Mr. Champion has done a superb job in lished in 1957 for the purpose of studying require the establishment of State Ad­ reaching this settlement. The agreement re­ and collecting information about or ap­ visory Committees. Section 7 authorizes moves a major, long-standing barrier to ac­ praising any legal developments or laws those appropriations necessary to carry complishing our goal of better Federal-State that may constitute a denial of the equal out the Commission's duties during the relations. protection of the laws, because of a The dispute began in the early 1970's when extension until fiscal year 1983. HEW took two actions: (1) it refused to pay person's sex, race, color, religion, or Mr. Speaker, the Subcommittee on 19 of the States some $1.56 billion in social national origin or in the administration Civil and Constitutional Rights, of the services claims; and (2) it sought reimburse­ of justice. The Commission is a well­ House Committee on the Judiciary, will ment from 13 of these 19 states, plus nine known and respected agency, and it has, begin hearings on this bill within the other states, of Federal funds already paid since its founding 20 years ago, done month. to the states for social services. more than any other governmental The focus of the dispute has chiefly been agency to identify and suggest solutions The bill follows: over the types of social services for which the to various civil rights violations. H.R.- federal government should reimburse the The Commission has been our omcial A bill to extend the Commission on Civil states and whether certain state procedures Rights for five years, to authorize appro­ were proper. conscience. Both the President and we priations for the Commission, to effect cer­ These service3 were covered under the old in the Congress have listened to its voice tain technical changes to comply with Titles I, IV, VI, X, XIV, and XVI of the and responded by enacting legislation to other changes in the law, and for other Social Security Act which became obsolete right the wrongs of years of injustices. purposes on October 1, 1975, when Title XX became It has been our eyes and ears in helping Be it enacted by the Senate and House of effective. Title XX of the Social Security us ascertain whether our efforts to end Representatives of the United States of Act is the new consolidated Title authorizing discrimination have been successful. America in Congress assembled, That this Federal payments for social services provided There are those who would say the sun Act may be cited as the "Civil Rights Com­ by the states. mission Act of 1978". The social services covered such areas as should set on the Commission, that 20 years of analyses and recommendations SEc. 2. (a) Section 103(a) of the Civil day care for children; protective services for Rights Act of 1957 (42 U.S.C. 1975b.(a); 71 neglected or abused children; drug and alco­ are long enough. It seems to me, those Stat. 635), is amended by striking out "in hol abuse services, counseling on family persons must now be prepared to say e.ccordance with section 5 of the Adminis­ planning, and a variety of services for aged, that there no longer exists segregation trative Expenses Act of 1946, as amended" blind, or disabled persons. in the schools and in housing, that dis­ and inserting in lieu thereof the following: The agreement now reached would pay, on crimination against females and minor­ "in accordance with section 5703 of title 5". a formula worked out between the Depart­ ities in the insurance industry and in (b) Section 103 (b) of the Civil Rights Act and the states, a portion of the pending un­ of 1957 (42 U.S.C. 1975b.(b); 71 Stat. 635) paid claims. In addition, 22 affected states employment has ended; that equal op­ portunity for the aged and handicapped is amended by striking out "in accordance will not be asked for reimbursement of funds with the provisions of the Travel Expenses already given them. (See attached table.) exists. They must be prepared to con­ Act of 1949, as amended" and inserting in The amounts to be paid to the states may clude that racial minorities and language lieu thereof the following: "in accordance be adjusted slightly if existing claims by the minorities are no longer subject to with the provisions of subchapter I of chap­ states are adjusted or if additional claims blatant or subtle discriminatory prac­ ter 57 of title 5". are fl.led. tices-practices which are obvious to SEc. 3. (a) Section 104(a) of the Civil PROPOSED SETTLEMENTS BY STATE those who experience them but are not Rights Act of 1957 (42 U.S.C. 1975c(a); 71 apparent to those of us who have the Stat. 635) ls amended by striking out "and" [In millions) power to remedy such wrongs. at the end of clause (5), by redesigns.ting Surely, we are not prepared to say clause (6) and all references thereto, as clause Claimed U.S. claims ( 7) , and by inserting after clause ( 5) the payment due against that equal justice and opportunity exists following new clause: from HEW Proposed States for all Americans; we have acknowledged "(6) study and collect information con­ State (1969-75) payment dropped that there are substantial numbers of cerning legal developments constituting un­ Americans whom this Nation has forgot­ lawful discrimination or a denial of the Alabama ______$1. 0 ten. We need the Commission to con­ equal protection of the laws under the Con­ Alaska. ______. 7 stitution on account of age, or with re­ Arizona ______5. 2 tinue to provide the objective insight necessary to our movement toward mak­ spect to handicapped individuals as defined ~~~~~rs~i~ ~= ====-- ______~ ~ ~ - ______~~~~ __ ------T5 by the second sentence of section 7(6) of Connecticut. ___ 38 22 6. 0 ing this country realize the greatest po­ the Rehabilitation Act of 1973 (29 U.S.C. Florida. ______28. 7 11 29. 1 tential of all its citizens. Georgia ______. 7 . 3 6.0 706(6); 87 Stat. 361) , appraise the laws and Idaho______1.1 .6 ------I ask unanimous consent that the bill policies of the Federal Governmept with re­ Illinois______87. 3 32. 1 188.4 be included in the RECORD at this point. spect to such discrimination or denials on account of age, or with respect to handi­ ~~~~i~~L ======1~:; The bill I am introducing today would capped individuals as defined by the second Maine ______2.2 1.3 ------extend the Commission for 5 years. It Maryland______24. 7 14. 3 ------sentence of section 7(6) of the Rehabilita­ Massachusetts ._ 142 75 also includes both technical and substan­ tion Act of 1973, and serve as a national Michigan______57. 1 32.6 ----·---·· -g:4 tive changes in its charter, the Civil clearinghouse for information in respect to M!nnes~ta. __ _ 49. 4 28. 6 4. 0 M1ssour1______------.2 Rights Act of 1957. Sections 2, 4, and 6 such discrimination or denials on account of 3 contain the technical amendments to the age or with respect to handicapped individ­ ~:: ~~rske_Y_ ~ === 91l· 214: ~ ------··49(i:o uals as defined by the second sentence of sec­ Ohio ______15.1 5.7 5.0 act, and sections 3, 5, and 7, the substan­ Oklahoma ______13. 8 tive provisions. tion 7(6) of the Rehabilitation Act of 1973; Pennsylvania ___ 4. 2 1. 6 2. 8 and". (b) Section 104(b) of the Civil Rights Rhode Island ______1.2 Section 2 (a) and (b) tracks the lan­ Act of 1957 (42 U.S.C. 1975c.(b); 71 Stat. Tennessee _____ .004 .0015 . 5 guage citations that come about as a 635), is amended by striking out "1978" and Texas ______92.7 34 34.7 result of the 1966 codification of title 5 Wash ing_ton __ __ 32. 8 ~~ 5.6 inserting in lieu thereof "1983". Wisconsin ... __ 65 . 5 6. 3 of the United States Code. Section 4 de­ SEC. 4. Section 105(a) of the Civil Rights letes language now in the act concern­ Act of 1957 (42 U.S.C. 1975d.(a); 71 Stat. Total. .... 1,560 532 830. 0 ing the compensation due the Commis- 636) is amended by striking out "and who February 2, 1978 EXTENSIONS OF REMARKS 2155 shall receive compeIL$ation at a rate, to be country. The lessons are clear. Meaningful ond-class "hand-me-down" technology-an fixed by the President, not in excess of change comes about only when people work inexpensive way for the "have" nations to $22,500 a year". together in partnership, not as donors or re- keep the "have-nots" temporarily satisfied SEc. 5. Section 105(c) of th~ Civil Rights cipients, but as equals, with an equal obliga­ and quiescent while continuing to control Act of 1957 (42 U.S.C. 1975d.(c); 71 Stat. tion to participate. The civil rights move- the more modern means of. .production. 636) is amended by striking out the word - ·ment taught me that change cannot be be­ Much of this skepticism has been spawned "may" the first time it appears and inserting stowed from without nor can it be imposed from previous development schemes which in lieu thereof the word "shall". from above; it can only be the result of the in fact were heavy-handed and sometimes SEC. 6. Section 105(d) of the Civil Rights full participation of the people most affected. arrogant. Such efforts, regardless of intent, Act of 1957 (42 U.S.C. 1975(d); 71 Stat. 636) So, too, in development. imposed Western models on cultures and is amended by striking "sections 281, 283, It is clear that the principles relating to places where such models were inappropriate 284, 434, and 1914 of title 18, and section the involvement of people in their own de- or even destructive. 190 of the Revised Statutes" and inserting velopment are universal: they apply to small By focusing on the community level, ap­ in lieu thereof "sections 203, 205, 207, 208, communities, to nations, and to interaction propriate technology can help a society grad­ and 209 of title 18". between nations. Nothing can ultimately be ually adjust to the necessary changes that SEC. 7. section 106 of th•J Civil Rights Act substituted for the direct involvement of development can cause while maintaining, of 1958 (42 u.s.c. 1975e.; 71 Stat. 636 ) is people, people who feel a deep sense of com­ preserving, even promoting local culture, amended to read as follows : mitment to finding locally relevant solutions values and identities. Previous development to local problems. approaches too often, whether intentional "AUTHORIZATION OF APPROPRIATIONS The Partners of the Americas and the or not, required the wholesale abandonment "SEc. 106. There are authorized to be ap- Peace Corps have long held to these princi­ of cultural standards. propriated such sums as are necessary to ples of participatory development. Today, as Appropriate technology seeks to work in carry out the provisions of this Act.''. political leaders and development theoreti- harmony with the cultural traditions of the cians increasingly come to these same conclu­ area. With its emphasis on limited scale, sions, we have a special responsibility and a appropriate technology can serve as a buffer THE PEACE CORPS AND LIGHT unique opportunity to serve as an example against the kind of bulldozer-mentality de­ CAPITAL TECHNOLOGY to the rest of the international community. velopment which has caused so much of This leads me to my topic-"Appropriate the world (including large parts of the Technology, the Key to Participatory De­ United States, I might add). HON. CLARENCE D. LONG velopment." Perhaps the best way to describe appro­ OF MARYLAND Technology can be defined as the applica­ priate technology is by illustration. Let me tion of s...:ientific principles for the achieve­ briefly tell you about a situation I think IN THE HOUSE OF REPRESENTATIVES ment of "Progress." But when we talk of you'll agree exemplifies development at its Thursday, February 2, 1978 Appropriate Technology, we are talking about best-leading to the kind of locally-based an approach, an attitude, a way of looking progress and self-sufficiency we all want to Mr. LONG of Maryland. Mr. Speaker, at the nature of chanire-a strategy which see. helping the poor people of the world to leads to meaningful development through People in the small community of Iluman help themselves is the principal goal of increased self-reliance at the local level. in the Province of Imbabura, Ecuador, heard the U.S. foreign aid program. Through Writing over 40 years ago. Mahatma about a machine in nearby Araque which light capital technologies that will en­ Gandhi said that helping small-scale indus­ converted cattle manure into a gas for cook­ able small farmers and rural craftsmen tries and otherwise strengthening local com­ ing and a fertilizer for the fields and gardens. to create their own "sweat capital," we munities, "provides an outlet for the cre­ They went to see this Araque Methane Gas ative faculties and resourcefulness of the and Fertilizer Plant and were given a dem­ can initiate endogenous development people . . . It may harness all the energy onstration of how it worked. It was, in their among the hundreds of millions of small that at present runs to waste." words, "maravilloso" and they began to dis­ producers in the poor countries. The Appropriate Technology approach to cuss how what they had seen could be use­ I should like to bring to my colleague's development taps this energy and talent, fully applied to their own village. attention a recent speech by Mary E. and is based on certain principles. Let me The Peace Corps became involved when King, Deputy Director of ACTION, on suggest these three principles for our these villagers sent a letter to the Volun­ the importance of appropriate technol­ thought and discussion: teer who was working with the Araque proj­ 1. Development begins at the community ect to ask for Peace Corps' help in establish­ ogies in involving the poor in their own ing a similar methane digester operation in development. In her speech, Ms. King level and moves upward and outward to build nations; it cannot be imposed "from Iluman. "We ask for your help," they wrote. describes how Ecuadorean villagers the top down" "We will provide our total effort because we heard of a new technology in use near­ 2. The goal of development is self-suf­ want to carry out this projected work for the by-a methane generation plant produc­ ficiency, not reliance on external resources benefit of our families." ing cooking fuel and fertilizer-and how with resulting dependency. In their letter, the farmers noted the need these villagers asked a Peace Corps vol­ 3. No meaningful change can take place if for better sanitation in their village. With unteer to help them build such a plant people are not involved as full participants the digester, manure would no longer be left in their own village. This example illus­ in the development and use of their own along pathways or in other community trates the importance of providing poor resources. places, but would be collected and converted Generally, appropriate technology implies into cooking gas. In addition, the resulting people with information on existing low cost, small-scale, labor-intensive solu­ sludge would be an excellent fertilizer. technologies they can use as well as rural tions to local problems. The village.rs were very interested in the villagers' eagerness to help themselves. Always, it implies understanding that u1::w source of fuel. To get firewood, they The existing network of 6,000 Peace undue reliance on finite resources will in­ wrote, "we have to walk almost four hours Corps volunteers around the world could evitably lead to social and economic dislo­ to the hill of the hacienda, spend an hour provide a vital link in a worldwide in­ cation, and that all solutions must be so­ to cut wood, and walk another four hours formation and delivery system for light cially and culturally appropriate to the par­ back to our house to cook with this wood, capital technologies. I hope my col­ ticular setting. which lasts at most four days." Years ago, leagues will take the time to read the The means and processes brought to bear, they could pick up the wood freely near then, are those that can be reproduced and their homes; now their land is denuded and speech which follows: continued locally, without the need for un­ ba.re, and they have to pay the owner of the REMARKS BY MARY E. KING realistic amounts of outside capital or tech­ hacienda for the privilege. "We are not satis­ I am particularly pleased to address this nical support. At their best, appropriate fied living this way," they said. meeting of the Partners of the Americas. The technologies should be· replicable in other Something else particularly attracted the word "Partners" has a special significance for communities, but only when and where it people of Iluman. Cattle would be kept in a me, not simply because I am here repre­ makes sense in local terms. Basic to ap­ central stable in order to facilitate the col­ senting the Peace Corps, another organiza­ propriate technology is the premise that each lection of manure for the digester. Villagers tion committed to the concept of partner­ approach must be constantly evaluated and had long wanted a stable, because theft of ship. reevaluated to determine just how appro­ cattle was a major problem. Many were Indeed, we enjoy a special contractural priate it is for a given time, place, culture forced to guard their precious cattle in their agreement with the Partners to identify Vol­ and setting. own houses with their families during the unteers to work in special education with As you probably know, questions have night. mentally retarded, the blind and deaf. We been raised about the true intent and im­ There were several basic, predictable gains have long worked together in agriculture, pact of appropriate technology. To some, ap­ which would result from the methane diges­ nutrition and health. propriate technology is village-level "busy ter. Yet, there is more to the story. When But the concept of partnership has mean­ work," sidetracking people from addressing the pipes for the methane gas were installed ing for me because of what I learned when broader and more fundamental institutional in the village, they were tested for leakage I worked in the civll rights struggle in my and political reforms. Some see it as sec- with ~ate.r . The sight of clear running water 2156 EXTENSIONS OF REMARKS February 2, 1978 in their houses prompted the village women from the experiences of other countries. THE 300TH AVIATION COMPANY to ask for a change in the plan. Our Volun­ Tanzania may be one example to study. Pres­ teers are now working with them to convert ident Julius Nyerere put it this way, "While the system so that it can deliver both water other countries aim to reach the moon, we HON. DALE MILFORD and gas, alternately, through the same pipes. must aim for the time being to reach the Three Peace Corps Volunteers served the village." OF TEXAS people of Iluman. But the actual work-and In 1972, over half of Tanzania's health IN THE HOUSE OF REPRESENTATIVES even more importantly, the enthusiasm and budget went to hospital and high level care. Thursday, February 2, 1978 desire-was based in the local community By 1976, that number had dropped to 12 itself. The villagers are committed to the percent. The bulk of Tanzania's health Mr. MILFORD. Mr. Speaker, I would very hard work of building the digester be­ budget last year was turned to more immedi­ like to call to the attention of my col­ cause they know the potential the system ate primary care health needs. leagues a special group of Army reserv­ offers. The use of paraprofessionals, community ists in the Dallas/Fort Worth area. You know as well as I do that "biogas based clinics, massive health immunization, generators" like the one in Iluman are not and nutrition educati:m ·;-> rogram.c: -these are The 300th Aviation Company, first or­ new. In various forms, such systems have areas where the U.S. could learn a great deal ganized in 1956, is composed of Army been used for decades in India, China and from nations far ahead of us. The Peace reservists who are also aviators. I be­ elsewhere. To me, what is significant in this Corps sends its volunteers to assist local lieve this company is highly deserving story is the development of human resources communities. But equally important are the of public recognition for their commit­ through the partnership of the Peace Corps lessons they bring back to the United States. ment to the ideals and purpose of the Volunteers and the villagers-with appro­ The kind of volunteer exchange work in U.S. Army and its Reserve program. priate technology. Although some of the which you are involved has that same dual skills and knowledge came from outsiders, practical application. Texans going to work Not only has the 300th maintained there is NO way that this technology could in their partner nation of Peru can go not c-Jmbat proficiency, but they have taken have been imposed from outside on that only to assist Peruvians, but also to observe an active interest in community affairs. village. and study ways to improve basic social con­ Individuals in the 300th have been cited No expert could have predicted that a ditions and to foster cross-cultural under­ for heroism in the rescue of three local group of villagers would decide to use an standing. And visiting Peruvians can offer alternative energy technology because their assistance and also absorb information in a citizens. Two were rescued from a creek cows were being stolen, or that others in similar fashion. Ecuador has a partner in flooded by torrential rain and one from their village would become interested in Idaho. Maybe the people from the mountain­ a burning mobile home which was joining the project because a test for leaks ous area of Iluman could teach a few things spotted on a routine training mission. in the methane pipes resulting in running to people from the mountains of Tdaho. Our Reserve Forces are extremely im­ water in the houses of participating families. We are coming to realize just how much is portant to our overall national defense And the project is successful not Just be­ left to develop right at home in the U.S., cause the Volunteers are committed but be­ how much we have to learn from others. In policy. Since 1970, U.S. defense policy cause the people themselves want it to be; many countries, for example, women have has consisted of small active professional they have invested their energy, their sweat, much higher professional status, have more forces immediately supported by reserv- their hopes-themselves-to make it suc­ to say about policy, more ccntrol cf family ists. . ceed. and community life and have more of an The All-Volunteer Force is a new con­ Appropriate technology recognizes .ilat integral role in community and village life true development takes place only when the than is true in parts of the United States. cept. Some 820,000 personnel in selected people who are to benefit are truly involved Where women's efforts and contributions are Reserve units are now the only ready and committed. wasted or downgraded, everyone loses. Some source of manpower for about 6 months, Development theoreticians and practition­ of you can be an example and a model for in any future confiicts. ers are increasingly realizing that. the focus us. Unless these Reserve units are com­ of appropriate technology should be village­ We truly are partners here in the Americas. level development-as an antidote to the bat-ready and capable of meeting exact Partners in need, partners in interests, part­ deployment schedules, the concept fails. failure of 25 years of large-scale, capital-in­ ners in meeting the economic, social and tensive development. But the principles of political needs of all of our people. I believe the 300th Aviation Company appropriate technology are equally applica­ meets the test. The 300th is stationed ble at all levels of development; both in the The Partners of the Americas represent the pluralism of the Americas as we are entering at Dallas Naval Air Station and has 31 United States and in other countries. As an UH-1 type helicopters assigned to it. example, let me cite the predicament in a period of perhaps less formal but more which the U.S. finds itself with its current intense cooperation. We need to consult The primary mission of the 300th Avi­ health care system. closely with each other, to assist and learn ation Company is to maintain combat Hospitals in the U.S. have become classic from each other's work. proficiency. If called to active duty the examples of what happens when technology The development work of private volunteer company would support ground elements is applied for technology's sake, losing sight groups such as the Partners of the Americas in conducting combat operations. Train­ of people and their real needs. has been outstanding. And while develop­ ing goals are accomplished by meeting With massive expenditures of capital and ment needs still far outstrip all current ef­ professional energies, we in the United States forts, volunteer potential is boundless. If one weekend per month. have some of the most sophisticated medical the people of the Americas can be involved­ The unit conducts a 2-week summer training, records and facilities in the world. as volunteers-in meaningful, relevant work camp annually for a total of 39 days of Yet at the same time, right in the nation's to improve the situation for all our people, training per year. Pilots and crew mem­ capital, .the infant mortality rate of 29 pe·r together we can move to meet basic human bers are authorized 24 additional flight thousand live births in 1975 was higher than needs, and meet them in technically and training periods to assist them in main­ Taiwan's, which was 26. In that same year, culturally appropriate ways. the median income in Washington, D.C. was Appropriate technology can be a thread taining their flight proficiency. Each avi­ $9,583; in Taiwan it was $810. And life ex­ tying our efforts and our roles together. The ator is required to fly a minimum of 80 pectancy in Sri Lanka is higher than it is opportunity exists now to achieve real and hours per year and must maintain pro­ in Washington, D.C. positive gains by building on the desire and ficiency in a number of skills to include The hard fact is that in the U.S. some­ resources of the people for whom our devel­ instruments, tactical, nap-of-the-earth, thing is wrong with our system of health. A opment programs are designed. emergency procedures, formation and single day in an American hospital can cost Pablo Casals once found the Peace Corps external load operations. a patient several hundred dollars; care has exciting in this way: become so costly that many don't even seek "It is new and it's always old. We have in Because the unit is self-sufficient, unit assistance when they need it. a sense come full circle. We have come from enlisted personnel must remain pro­ We must, therefore, live with the contra­ the tyranny of the enormous, awesome dis­ ficient in aircraft maintenance, supply, diction of having highly sophisticated means cordant machine," he said, back to the real­ administration, food preparation, :fi­ to meet specialized problems and wholly in­ ization that the beginning and end are nance, avionics, ground equipment main­ adequate, low-cost primairy health care capa­ people, that it is people who are important, tenance and many other skills. bilities. The U.S. health system, in short, not the machine; that it is people who ac­ In addition to its primary mission, the is inappropriate for large numbers of our count for growth, not just dollars or fac­ nation's people. It has specialized and priced tories, and above all that it is people who 300th has taken a strong interest in its elf beyond reach of the basic needs of are the object of all our efforts. community affairs. Through the USAR people in meeting the professional needs of It is that vision we must all retain. Other­ Boy Scout program, the company acts as practitioners and providers. wise all the programs, all the spending, all sponsor and assists an Explorer Troop. A I believe that this situation can be turned the efforts in which we're engaged lose their working relationships with local units around, especially if we're willing to learn point and their meaning. of the Civil Air Patrol is maintained. February 2, 1978 EXTENSIONS OF REMARKS 2157 Joint training of Civil Air Patrol is trying to revive the Israeli-Egyptian peace This would mean, if he gave notice Feb. 1, Cadets and USAR flight crewmen is con­ talks. as I am told the Administration is now The arguments for the deal within the thinking of doing, that this military side ducted on simulated search and rescue Carter Administration-and this argument issue would be dividing the Congress while missions. The unit has given support and goes very high in the White House-is that Messrs. Sadat and Begin are still trying to realistic training to other Reserve, Na­ Saudi Arabia is central to global stability come to their senses, when the Congress was tional Guard and ROTC groups in the and a moderate Arab world. It is important trying to reach the long-delayed compromise Dallas/ Fort Worth area. to the United States, according to this view, on the energy bills, and when the Panama I believe a strong, effective Guard and and also important to Israel. Canal treaties were coming up for debate in Reserve is the only alternative we have In support of this argument, the highest the Senate. to larger, more costly active services. security advisers to Mr. Carter emphasize No doubt there is something to be said Pressure to keep defense spending down that Saudi Arabia has been financing Presi­ on both sides of the F-15 issue, but right dent Sadat and the more moderate Arabs; now it only doubles trouble. As General has made us more reliant and dependent that it has opposed even higher oil prices Jackson said at the Battle of New Orleans: upon the Reserve Forces. With this in and kept production of oil higher than it "Let's elevate them guns a little lower." mind, I think we must be prepared to in­ should have in its own interests; and that vest money in the Reserves and provide it is now threatened by the Soviet Union's the necessary training and equipment efforts to establish military bases on Saudi HOME HEALTH CARE that is needed for a first-rate Reserve Arabia's flank at the southern gate of the Red Sea. Force. I am proud of the 300th Aviation The Israeli arguments against the deal, Company in the Dallas/ Fort Worth Met­ now being widely circulated in the Congress HON. WILLIAM S. COHEN roplex. and the press here, are: OF MAINE The F-15 is a very special aircraft, supe­ IN THE HOUSE OF REPRESENTATIVES rior in its versatility, maneuverability and THE F-15 ONLY "DOUBLES firepower, and would be a threat to the secu­ Thursday, February 2, 1978 TROUBLE'' rity of Israel, particularly if it were to be Mr. COHEN. Mr. Speaker, I join Mr. made available to other anti-Israeli states HAROLD FORD, my colleague on the House or taken over by militant Arabs in a coup Select Committee on Aging, in cospon­ HON. JOSHUA EILBERG against the Saudi Arabian monarchy. soring two pieces of legislation intro­ OF PENNSYLVANIA The Saudis, according to this pro-Israeli duced today by our chairman, Mr. IN THE HOUSE OF REPRESENTATIVES argument, are already receiving 110 special F-5E fighters and 250 M-60 battle tanks from PEPPER, to expand home health benefits Thursday, February 2, 1978 the United States, 300 French AMX tanks, under medicare and to improve informa­ Mr. EILBERG. Mr. Speaker, the news and have not only produced a new military tion about home health programs media continues to report that the Car­ establishment in the last five years at a thr·::>ugh a national clearinghouse. cost of over $12 billion but are building a Since its inception, our committee has ter administration intends to propose major military complex at Tabuq, 125 miles the sale of 60 F-15 fighter bombers to a'ivocated a broad range of services to from Israel's major southern port of Eilat meet the needs of the chronically ill and Saudi Arabia. and 140 miles from Sharm el-Sheikh on the The proposal will likely generate a Straits of Tiran. disabled elderly in our society. Home great deal of heated debate. For this rea­ If the Begin-Sadat peace talks had really health care is among these necessary son, I noted with special interest a Jan­ broken down all the way, and the Israelis services. Unfortunately, however, the uary 27, 1978 New York Times column and the Arabs were squaring off for another Congress and the administration have by James Reston, who points out that tragic war, maybe the Saudi insistence on not fostered the development of home getting 60 of these special planes, and the health or other in-home services within regardless of how one feels about the Israeli opposition would make sense. merits of the proposed sale, it clearly Federal entitlement programs. They But what is developing here is a propa­ have been reluctant to make these serv­ comes at an extremely poor time in light ganda war over weapons before Messrs. Begin of the delicate negotiations now under­ and Sadat have had a chance to remember ices available without assurance that the way in the Middle East. why they startled the world with the hope public dollars needed to support such As Mr. Reston explains, this is no time of peace in the Middle East and what they care would be well spent. As a conse­ to propose an arms sale of this magni­ are now in danger of losing. quence, Federal health care aid to the tude. It has a large potential for dis­ For example, the American-Israel Public elderly relies almost excusively on costly rupting the balance of power in the Mid­ Affairs Committee in Washington has just institutional care, which is often inap­ nut out a memorandum which not only calls propriate to treat the chronic conditions dle East, and it unnecessarily presents a the United States-Saudi deal a "threat to divisive issue to Congress at an inoppor­ of the elderly and contrary to the wishes peace" but suggests that, if the deal goes of the elderly themselves who want to tune time. through, Israel might have to take military As the following column by Mr. Reston action against Saudi Arabia in any major remain independent in their own homes. states, the proposed sale of the sophisti­ threat of war. Two Government reports illustrate cated F-15 fighter bomber only "doubles "If Saudi intentions are ambiguous or ap­ this point. The General Accounting Of­ trouble" in the Middle East at a time pear to be leaning toward involvement in a fice has just released a report entitled, when we would better serve the interests war," the memorandum says, "the Jsraelis "Home Health-The Need for a National of peace by a more moderate approach will have to take this into account. During Policy to Better Provide for the Elderly." to the problem. an Arab attack against Israel, should F-15·s In that report, statistics indicate that be stationed at or transferred to bases in (From The New York Times, Jan. 27, 1978] approximately 17 percent of those 65 and the Northwest, the threat posed to Israel older are considered greatly or extremely How TO DOUBLE TROUBLE may comnel the Israeli Air Force, faced with impaired. For these impaired older Amer­ (By James Reston) a multifront war, to undertake immediate strikes against these bases and aircraft even icans, the costs of home care services WASHINGTON, Jan. 26.-Just when nobody exceed those o.f services provided by in­ needs it, another disruptive controversy is if Saudi Arabia had not yet brought its surfacing in Washington over Saudi Arabia's forces into the war.... " stitutions. However, only a fraction of efforts to buy 60 F-15 fighter-bombers from So what's going on here? What is the point greatly impaired older citizens are in the United States. of this kind of talk at this awkward and fact, institutionalized. Many of those not The F-15 is probably the most effective sensitive but still hopeful time in Middle institutionalized prefer to remain at modern fighter-bomber in the world today. East negotiations? Why, if the Saudis are so home, despite the additional costs. On The Ford Administratic...n originally promised "moderate" and "peaceful," are they press­ the other hand, of the 5 percent of the to sen these planes to the Saudis, and Presi­ ing so hard now to get F-15's, which, even elderly who are institutionalized, not all dent Carter, when he was in Saudi Arabia, if they got them, couldn't possibly be put of them are severely impaired. A study apparently agreed to go through with the into operation by their own people for years? deal. And why did President Carter go along at done by HEW revealed that between 14 This is violently opposed by Israel on the this particular time? and 25 percent of those in institutions ground that such a sale would alter the bal­ He is obliged, under present law, to notify did not need that intensive level of care. ance of power in the Middle East. So the the Congress 20 days in advance of his inten­ These individuals have been placed in outlook now is for a divisive debate on the tion to make l"Uch an arms arrangement. And institutions, not because the institution issue between the Arabs and the Israelis and then he would be free to go through with is the best mode of care, but because, between the Carter Administration and the it if the Congress did not forbid him to do when financial alternatives to such care Congress precisely when the United States so in the ensuing 30 days. are not available, it becomes expedient. 2158 EXTENSIONS OF REMARKS February .'2, 1978 The growing demand for quality, cost­ Add services to help maintain persons As a matter of economic and social effective home health services is begining at home, such as periodic performance of justice, I urge quick and favorable con­ to be heeded. HEW held hearings in the household tasks, transportation for doc­ sideration of this legislation by my fall o.f 1976 which documented the need tor visits, essential shopping and simple colleagues. for a more coherent Federal policy on household repairs. home health care. The hearings sug­ In GAO's view, the costs associated gested that the issue of agency sponsor­ with these changes would not be prohibi­ THE BWCA: A SUMMARY OF THE ship would become less important if qual­ tive and could provide disincentives to in­ CENTRAL ISSUES ity standards and appropriate cost con­ stitutionalization. trols were in force. The second bill-the Home Health HON. DONALD M. FRASER The issue of quality standards was Clearinghouse Act--would provide for OF MINNESOTA addressed by the Congress in the recently the establishment within the Depart­ IN THE HOUSE OF REPRESENTATIVES enacted Medicare/Medicaid Anti-Fraud ment of Health, Education, and Welfare and Abuse Act. Section 18 of that act is of a "Home Health Clearinghouse" to Thursday, February 2, 1978 based on legislation I introduced to in­ promote effective coordination and de­ Mr. FRASER. Mr. Speaker, as t'he de­ sure quality care and effective utilization livery of home health care by collecting bate over the future of the Boundary of the Federal Government's home health and disseminating concise, understand­ Waters Canoe Area continues, it is im­ programs. We need standards for partici­ able information regarding the avail­ portant that we not lose sight of the pation in Federal programs which are ability of in-home services under Federal, central issues. Miron Heinselman, chair­ uniform, adequate, enforceable, and open State, local, and private agencies. The man of the Friends of the Boundary to all providers who can meet them. elderly need a place where they can ob­ Waters Wilderness, recently wrote a With these standards, which should be tain information on the health programs guest editorial for the Minneapolis Star forthcoming later this year, we will be in available to them. outlining clearly and concisely the prob­ a position to liberalize our Federal home The health care needs of the elderly lems on which we need to focus our at­ health care benefits without fear that the are beyond the scope of the traditional tention. I think the statement is worth Government will be forced to intervene health programs we have for them. We · reading. in crisis situations, such as recent in­ have the opportunity to establish a sys­ The article follows: stances of fraud and abuse within the tem which is not only cost-effective, but [From the Minneapolis Star, Jan. 5, 1978) nursing home industry. which allows the chronically ill and dis­ BWCA: RESOLUTION OF ISSUES SIGHTED At present, home health benefits under abled elderly the dignity of a choice be­ (By M. L . Heinselman) medicare have been minimal because of tween care options. These bills deserve Congress has now discussed the Boundary requirements that confine beneficiaries the thoughtful consideration of my col­ Waters Canoe Area problems of wilderness to their homes and require that they be leagues, and I commend them to their boundaries, logging, mining, snowmobiles in need of skilled care, that limit the attention. and motorboats for two years, and a resolu­ number of home visits and services which tion of the issues is in sight. There is much could be offered, and that require the feeling that no areas in the BWCA should be eliminated from the National Wilderness beneficiaries to be hospitalized prior to Preservation System, but that instead a few receiving home health care. These bar­ SOCIAL JUSTICE IN SOUTH AFRICA: ECONOMIC JUSTICE IN THE key areas should be added. Reps. Oberstar riers to home health care encourage UNITED STATES and Fraser agree on several additions, and overuse of institutional care. Clearly, the Carter administration has proposed present controls are misdirected, both in boundaries similar to Fraser's. Oberstar still terms of patient need and suitable care. HON. ANDREW MAGUIRE maintains that certain areas should be re­ moved from the wilderness and made na­ Added to this is the proliferation and OF NEW JERSEY tional recreation areas, but it is very un­ fragmentation in those long-term care IN THE HOUSE OF REPRESENTATIVES likely that Congress will buy that. and social service programs that now Thursday, February 2, 1978 A consensus has virtually been reached on exist. At least eight programs, includ­ ending BWCA logging, the cutoff to be offset ing medicare, medicaid, Title XX Social Mr. MAGUIRE. Mr. Speaker, I have by assistance to the timber industry. That Services, and the Older Americans Act, introduced a resolution today which approach has been endorsed by Reps. Fraser, provide supportive services for the elder­ would overturn the decision of the Presi­ Nolan, Quie and Vento, Sen. Anderson, Gov. dent to reject the recommendation of the Perpich, and the Carter administration. The ly in their own homes. Each of these pro­ key House committee chairmen, Reps. Phillip grams has a different set of eligibility re­ International Trade Commission that Burton and Morris Udall, urged the current quirements and income limits, and often import relief be granted to U.S. producers logging moratorium, and Rep. Oberstar was they are governed by conflicting regula­ of high-carbon ferrochromium

A FEW THOUGHTS HOUSING AND GROWTH POLICIES: and other environmental concerns, has not If a disinterested traveler flew into Taipei THE PROBLEMS come without cost. It has added substantially from C.alifornia, he would find it drab, poor, to the price of the average house within the and boring. By comparison to Los Angeles, it st ate. In Orange County, for instance, that is. HON. ROBERT K. DORNAN average price is today at $85,000-and ris­ But suppose he took six months to reach OF CALIFORNIA ing. Raw land has become increasingly costly Taiwan by the instructive route-overland and increasingly hard to find. Costly develop­ from Istanbul, down the peninsula to In­ I N THE HOUSE OF REPRESENTATIVES mental delays have been uniformly passed donesia, and then to Taiwan. He would gain Thursday, February 2, 1978 along to the homebuyer. astonishing insight into what we inaccurate­ According to a study by the Urban Land ly call the developing world. In Calcutta he Mr. DORNAN. Mr. Speaker, govern­ Institute (UL!) on the impact of growth would see starving children naked in gutters, ment at all levels is having an increasing management policies on two homebuilders fiies sucking at the drainage fr.:::m their eyes. impact on the American homeowner. in San Jose, it was found that total public In Indonesia he would see lepers patiently Nowhere is that more apparent than in policy related costs between 1967 and 1976 waiting in cardboard hutments, both dissolv­ my own State, California. Regulations, rose by 118 per cent for one builder and by ing in the monsoon. Cambodia is an abattoir, commissions, zoning laws, and other con­ 195 per cent for the other builder. Sales Laos is nothing, Burma is a pathetic back­ siderations can create major delays in prices of housing built by these builders dur­ wash returning to the jungle. Genera.Uy ing that period rose in one instance by 80 speaking, the developing world is not devel­ construction or repair of housing and per cent and for the second builder, more oping. thereby reduce viable competition in the than 121 per cent. But Taiwan is a bustling little Japan, de­ housing market. The ultimate results are That study shows dramatically how growth veloping at a r3.pid clip-not, incidentally, on soaring land and construction prices and management in San Jose has added signifi­ American aid, which ceased long ago. Every housing units that are inadequate in cantly to the cost of housing in that area. third world colonel has a five-year plan and quality and quantity. And, much the same could be said for many nothing else. Five years later, he still has a The impact of growth management other areas in the state. Pointing to a polit­ five-year plan and nothing else. Taiwan's de­ policies on homebuilders and owners is ical change within the city government in velopment is visible, vertifiable: New reactors the mid-1960s, the ULI study says San Jose at Jin Shan, the longitudinal highway, the explained in a current article by Ross M. turned from pro-growth to greater develop­ new port at Gao Syung. In remote farming Blakely, chairman and president of mental controls. villages our traveler would find well-dressed Coast Federal Savings & Loan Asso­ In 1970, San Jose adopted its first urban people with colcr TV, refrigeration, stereo, de­ ciation of California. Mr. Blakely has development policy (UDP)-with goals of cent housing, schools. considerable expertise in this area. His orderly, planned, balanced development; Gurus scorn the merely material, which firm has assisted the housing industry in maintenance or enhancement of the physical they have never lacked. The developing world numerous ways: It lent $73 million to and social quality of urban life. craves material wealth so that its children Added to the UDP of San Jose was an im­ won't grow up in the same stinking alleys, homebuilders in the first half of 1977, and has become one of the Nation's most portant State Supreme Court decision that swatting the same droning roaches in the extended the California Environmental same sweltering slums. active participants in the secondary Quality Act to require the preparation of an In Taiwan, children will not grow up in mortgage market. I hope that his anal­ environmental impact report (EIR) for all stinking alleys. If Taiwan's existence weren't ysis will be of considerable interest to my proje;::ts requiring a government permit. The so damnably awkward-if it were only mod­ colleagues: Urban Land Institute study says of this: ishly to the left-gurus would love it. But (From the Coast News] "EIRs became instrumental in turning alas ... cities' attention to themselves, making them Taiwan is a dictatorship, as are most coun­ CHAIRMAN' S MESSAGE aware of their forms and futures. They also tries. One might note that dictatorship is In Time magazine several months ago there gave the city another tool for reviewing and, not an undifferentiated evil, there being con­ appeared a photograph of a Santa Monica if desired, delaying or curtailing develop­ siderable range between Marcus Aurelius and house with this dramatic and very telling ment." Khieu Samphan. Taiwan's people can as­ caption: Bought 1974, $61,000; Sold 1977, Those delays and curtailments have heaped sociate freely with foreigners, marry theJ;n, $131,500. additional costs on both new and existing buy stylish clothes which are widely avail­ For families in California this kind of in­ housing. With a growth management policy, able, listen to the Rolling Stones, buy a formation was not news. Developers here tell raw, vacant land that can be developed for broad selection of western books, and buy a grim joke about how it takes four years to housing becomes increasingly scarce and somewhat censored copies of Newsweek. win approval on a subdivision, four months more expensive. In the case of the two San These freedoms do not overwhelm some­ to build the subdivision, and four hours to Jose builders, between 1967 and 1976, the one from the U.S. with their extensiveness. sell the homes. That's how it's been in the price of that land rose by 29 per cent for one The Russians and Chinese, one notes, allow stat e for some time now. The demand for builder and by 168 per cent in the case of the almost none of them. Here we come to what housing has been phenomenal, and the level second builder. The price of housing as re­ irritates me about the gurus: Comoar t rr.. e:ri~. of new construction simply isn't able to keep flected by just those increases rose by 4.7 * * * think, the insistence on judging dic­ pace with that demand. The result: Bought per cent in the first builder's case, and by tatorships of the left and right by different 1974, $61,000; Sold 1977, $131,500. 13.9 per cent in the case of the second standards. We've all read about the so-called "afford­ builder. I have an outrageous proposal. Let us ability gap" in housing; that more and more Delays in development created by the vari­ judge all third-world countries by t he same people are being priced out of housing be­ ous environmental reviews and impact stud­ standards. If we break relat ions wit h Tai­ cause those prices have risen beyond the ies, among other public policy considera­ wan because it is a dictatorship, let us break means of the average family. tions, also have added to the cost of the relations with Moscow and Peking because Inflation, without a doubt, has a major average single family and rental housing they are worse dictatorships. If we writhe bearing on this widening gap. But there also unit. According to the ULI study, "Interest 1n ecstasy on learning that a few Mainland­ are other factors at work, factors which in paid on land and construction loans, and ers have wristwatches, we must surely ex­ California have served to drive up the price property taxes paid during the loan periods, pire of delight that Taiwan has television, of housing faster than in any other part of are important components of public policy .stereo and, increasingly, automobiles. In the country. related costs. Property tax paid during the short. let us attempt a modicum of integrity. Public policy influences in housing have land-holding and construction periods is I foresee the effects on our foreign policy, added substantially to the price of both sin­ quite clearly a public policy related cost. The but let us bite the bullet. gle family and rental housing throughout interest costs attributable to public policies the state. These policies may deal with such are a function of the delays endured by the BUT I DREAM factors as state coastal zoning laws, sewer developer in obtaining final approval to At my next cocktail party a guru will moratoria, environmental impact statements build, the cost of the land (where the avail­ splash into the conversation like a Chesa­ and subdivision reviews. They translate into ability of land is restricted because of city peake retriever and emerge, dripping, with two major cost factors in housing: delay, and development policies and land cost conse­ Chiang Kai Shek in his teeth. Chiang is cur­ increasing land scarcity. quently rises), and the cost of city-imposed rently a corpse. Chiang was a schnook in Many jurisdictions in the state have ex­ fees." 1949, the retriever will gurgle triumphantly, perimented in recent years with land use How much do these delays cost in terms and therefore Taiwan is the enemy. Confus­ restrictions and other environmental con­ of the average house? According to data of ing an island with a general would baffle trols-constraints which impact immedi­ the Construction Industry Research Board, an ordinary man, but a platinum-washed ately in higher costs to the supplier of hous- each month that the start of construction guru is not an ordinary man. ing. That added cost has been passed along on a $60,000 house is delayed, the purchaser And I will slip off into the shadows, de­ to the consumer. California's penchant for of that house will have to add an estimated feated, brooding over the future of thought. open space preservation, clean air and water $900 to the total cost. 2162 EXTENSIONS OF REMARKS February 2, 1978 In another study, prepared by the Orange temper or raise her voice. She was a great algebra books and cigarettes she stole from County Cost of Housing Committee, which example to us all, and when the histories tier children. includes consumers as well as construction of Guam and her people are written in At first, she told him never to give up. industry representatives, it is more conserva­ But later, watching the torture of her tively estimated that prices increase 1.1 per the future, the name of Agueda Johnston friends and relatives, she sent him a message cent for every month that a residential proj­ is destined to appear over and over again. that maybe he should turn himself in, to stop ect is delayed beyond its planned construc­ Her contributions to the human develop­ the torture. She asked him not to try to tion start date. A six-month delay in a $40,- ment of the island were immense, and contact her any more. 000 home, in other words, would lift the will continue to be felt for generations to She sent a message telling him that the price of that house by $2,640. come through the influences and inspira­ Japanese had threatened to kill B. J. Bor­ None of this is to suggest that land plan­ tion that she imparted to so many of dallo, and asked him to turn himself in. ning or concern for the environment is less "One man ls not worth the life of the father than proper for any jurisdiction. Indeed, Guam's current leaders. of 13 children,'' she said. good land planning is essential to all of us It is an honor to offer for the RECORD Tweed answered that the United States if we are to avoid excesses and abuses of excerpts from an account of the life of wouldn't hesitate to put a woman before a development. "Good land planning" is the Agueda I. Johnston that appeared in the firing squad for treason if she told where he key phrase, and "good" is the important December 31, 1977, issue of the Pacific was hiding, she said. word. "Bad" land planning, whether it goes Daily News: Her feelings were hurt by that message, too far one way or another is still bad. for she felt she had done her part. She had (From the Pacific Daily News, Dec. 31, 1977] The pendulum in California appears to been arrested with her daughter Cynthia, have swung to the extreme in terms of the SHE WAS TEACHER, MOTHER, HEROINE TO ALL her son Tom and her son-in-law Joe Torres. benefits that people can expect from envi­ GUAM They were separated and Mrs. Johnston was ronmental and land use restrictions as op­ Born on Dec. 12, 1892 in Agana, Agueda flogged with a cat-o'-nlne-tails to force her posed to the costs that are mounting from Johnston began teaching at age 15, "hardly to tell Tweed's whereabouts. Jagged bits of those restrictions. We know a good deal bigger than her students," according to fam­ flesh were torn from her frail body-she about the cost impact of these restrictions, ily spokesman Emilie Johnston, her daugh­ weighed only 100 pounds-until she was but we know very little in terms of the bene­ ter-in-law. Y'oung Agueda taught at the beaten to the floor. She refused to tell. fits resulting from those costs. Clearly, where school where she had just graduated, Alma­ Taken before the "big chief," she resorted home prices have climbed to incredible di­ cen Grammar School, continuing her educa­ to flattery, telling him she would be happy mensions-forcing too many deserving fam­ tion at the same time by taking correspond­ to be investigated by "such intelligent ilies out of the housing market-the pendu­ ence courses. gentlemen who were believers in justice." lum needs to swing towards fewer restric­ Two years later, according to a Baltimore "He fell for that," she wrote in a letter to tions rather than toward ever-more-strin­ Sun story, " ... fate entered her life in the her daughter Margaret Goetz, and he let her gent ones. person t>f William Gautier Johnston." A go after making her promise to tell him 1:f Professor Fred E. Case of UCLA, in a recent graduate of Peabody College with two years she learned anything about Tweed. study, summed up the situation well for of graduate study at Vanderbilt, he was serv­ "I'm happy he didn't get caught," she California and, indeed, for the nation. He ing in the Marines on Guam when he was said later, "but I'm not happy about the said, "However noble their purposes, land delegated to instruct island teachers in Eng­ lives that were lost because of him. We use and environmental controls are working lish. "To Agueda Iglesias, his most brilliant protected him, but not for himself, but be- in direct contravention to the adopted na­ student, he also gave lessons in a still older . cause he was a symbol of America." tional goal of providing safe, sanitary hous­ language and in 1911, the two were married." She created Liberation Day. She had to ing for every American family within its William Johnston left the Marines and convince Army and Navy leaders it was worth financial means. Whether there will be equiv­ opened the first theater on Guam, the Gay­ doing, and a year after the reoccupation, the alent individual and social benefits suffi­ ety. He also operated a soap factory. celebration was established. cient to modify this national goal still re­ As the two raised their seven children, "All I had to supply was the building," she mains to be seen." Mrs. Johnston continued teaching until said, "and it turned ont to be a bamboo shack. When they jitterbugged, I thought Perhaps it's time for state and local gov­ 1925, when she became principal of Almacen, opened the first junior high school (Seaton they would be hurled through the walls." ernment officials to begin to find out if the She founded George Washington Senior benefits of these constraints are worth the Schroeder) and served as its principal until price being paid by families in our state 19'36. High School. The schools had been closed and ransacked by the .Tapanese, who used who have been priced out of the housing She was also founder and principal of the market. them for barracks buildings and burned first high school, George Washington High books and benches to heat their bath water School and Teachers' Institute, from 1936 Most of the texts were gone. so the teacher!> to 1946, when she became assistant superin­ mimeographed parts of books ( dlligently AGUEDA IGLESIAS JOHNSTON tendent of the Department of Education. She censored by the mllitary) and bits of news­ FffiST LADY OF GUAM retired for the first time from that position papers and magazines. in 1955. In 1946, she became assistant superintend­ Concurently with those positions, she in­ ent of the Department of Education, and HON. ANTONIO BORJA WON PAT structed in the summer normal schools retired for the first time in 1955. OF GUAM in psychology, English and pedagogy; was She campaigned against and succeeded in public relations officer for the Department IN THE HOUSE OF REPRESENTATIVES having outlawed the taxi-dance halls that of Education, coordinator of nurses at Guam were thriving. rt wasn't the dancing she ob­ Thursday, February 2, 1978 Memorial Hospital, chairman of the scholar­ jected to, it was the "after-hours activities." ship board, a member of the teacher certifi­ It was at this time that she ran for the Mr. WON PAT. Mr. Speaker, recently cation committee and the a.dvisory commit­ legislature and was defeated. Deeply hurt. be­ the Territory of Guam lost one of its most tee for the Territorial College of Guam and cause she felt that the people of Guam didn't beloved citizens, Agueda Iglesias John­ a member of the board of education from want her, she went to the States and stayed ston. Agueda Johnston was a very special 1965 to 1973, serving as its chairman in with her children. Perhaps she may not have person, an educator, a civic leader, an 1949. realized the people of Guam may have inspiration, an example. In her 85 years Agueda Johnston's life was marked with thought her to be "above oolitics." She she touched more hearts and minds on soaring courage, heroism and suffering, tem­ stayed in the states until Typhoon Karen Guam than anyone I know. I will miss pered with laughter she generated herself. devastated the island. Then she came back, In 1934, she helped organize the first troop when the island needed her. her. Guam will miss her. Everyone who of Girl Scouts on Guam. She continued tak­ Even in sorrow. her sense of humor didn't knew her will miss her. ing extension courses to improve her pro­ desert her. When told that a 11randdaughter Agueda Johnston and education were fessional qualifications. would be named r.ibby for Liberation Day, virtually synonymous on Guam. Born on William Johnston was arrested and taken she quipped, "What's the matter with Del Guam on December 12, 1892, she began . to Japan, where he died a year later in a Monte?" her teaching career in 1910 at the age of prison camp. His wife was notified of his On her retllrn, she heloed build parks and 15. In 1936 she founded Guam's first high death by letters in Japanese and Chamorro. schools. and she did so much for the com­ It was forbidden to possess American flags munity that Agueda T. Johnston Junior High school and I had the privilege of working School was named after her. with her during some of those years be­ or money. A leader in the resistance here, Mrs. Johnston had two fine silk paintings of At the dedication ceremonies, she looked fore World War II as one of the teachers her daughter hanging in the living room. As around at the judges, governors and digni­ in that school. She was a source of great the Japanese admired the paintings, they taries who were her former students and personal inspiration. She was dynamic were not aware that she had hundreds of murmured to her daughter, "Some of my and dedicated, and blended these quali­ American dollars hidden behind them. students look older than I do." ties with an ever-present style of dignity She knew George Tweed and helped him It was true. Youthful in soirlt and appear­ and grace. I never knew her to lose her hide, supplying him with soap, magazines, ance, she said in her speech that day, that February 2, 1978 EXTENSIONS OF REMARKS 2163 she was enormously proud of the tremendous or $1,522.72 for a family of four. Why do peo­ billion for legal purposes. Hence, of the total growth of education here. She also admitted ple need these amazing sums? The answer's $304 billion money supply, $275.3 billion rep­ there were problems. not hard to :find: This currency lubricates a resented legal and $28.7 b1llion--0r 9.4 per "Parents used to deliver their child and vast amount of nonreported income and non­ cent-1llegal purposes. The $275.3 billion held say 'He's yours now.' They gave you con­ reported work a.nd employment, a whole sub­ for legal purposes were needed to produce fidence and responslb111ty, and you had to terranean economy, untaxed and substantial­ the $1,693 billion legal GNP in 1976, while treat each child as your own." The disap­ ly ignored, whose GNP of almost $200 billion the $28.7 bllllon held for 1llegal purposes pearance of that unity, she felt, ls one reason exceeds the entire legal GNP in the middle of were needed to produce an estimated $176 for today's problems. World War II. billion 1llegal GNP. (See Exibit 1.) Her work with the elderly helped her keep Who participates in the subterranean econ­ up with the times. "Old folks here are very omy? Anyone who receives cash in a business EXHIBIT 1: MEASURING THE SUBTERRANEAN ECONOMY shy," she said. "They say nothing if you hurt transaction has the option of joining. Cash their .feelings." So she tried to make them transactions are common in certain kinds of 1937-41 1976 =Mi =Per­ =GNP feel wanted, a part of the community. buslnesses-e.g., retailing, personal services (per­ (per­ (bil- cent (bil­ She was the guiding force behind the and the classic lllegal and quasi-legal activi­ cent) cent) lions) lions) foundation of Servicio Para I Manamko. ties. Restaurants, car washing establishments, Petite, her dark eyes sparkling, she was in garages, bars and small retail shops, in par­ cu 11:~~[ ______0 12. 7 $28. 7 9. 4 i $176 the forefront of the organization, acting as ticular, lend themselves to tax avoidance Legal..1 ______through cash transactions. Certain types of 21.7 I 21. 7 49. 1 consultant and adviser and appointment Demand deposits. 100. 0 100. 0 226. 2 }90. 6 1, 693 director, finding suitable homes and super­ transactions-payments to casual labor, pay­ vising the arrangements. ments for part-time work, payments of Total. ______304. 0 100.0 1, 869 Mrs. Johnston once received a postcard brlbes--also commonly involve cash. How does the subterranean economy affect addressed to "The First Lady of Guam.'' It 1 The amount of currency required for legal transactiolls in had been delivered to Government House, employment? Obviously, employment ls 1976 is assumed the same percentage of demand deposits as in and Mrs. Eldredge, wife of the civllian gov­ greater than official statistics indicate. Some 1937-41. The amount of currency required for subterranean of those supposedly unemployed, some so­ transactions is obtained by subtraction. ernor, brought it straight to Mrs. Johnston, i The amount of GNP lubricated by $1 of M,-whether currency saying she knew immediately that Mrs. called discouraged workers and even some or demand deposits-is assumed the same for both legal and Johnston was the intended recipient. supposedly not in the iaoor force at all, are subterranean activities. Agueda Johnston suffered a stroke last evidently busily at work in unrecorded ac­ The $176 b1111on figure may well be con­ week, and yesterday, she was getting low, tivities. servative. First, the ratio of currency to de­ Emille Johnston said. All her children and The subterranean economy, like black mar­ mand deposits would have continued its de­ grandchildren came in to say farewell and kets throughout the world, was created by cline after World War II, had it not been for some tried to tell her how much she had government rules and restrictions. It ls a tax avoidance; the proportion of currency done for them. Elaine Borja, an adopted creature of the income tax, of other taxes, of actually devoted to 1llegal use is higher than granddaughter, said she had received the limitations on the legal employment of cer­ 36.9 per cent, and the illegal income larger. greatest gift an identity, for "mama" had tain groups and of prohibitions on certain Second, since the end of World War II demand arranged for her adoption. activities. It exists because it provides goods deposits-which are non-interest bearing­ and services that are either unavailable else­ have expanded greatly as business has turned where or obtainable only at higher prices. It to using such deposits to compensate banks also provides employment for those unem­ for services rendered, rather than paying the THE SUBTERRANEAN ECONOMY IS ployable in the legal economy; employment banks directly. Since some of the total de­ for those-like the retired who draw social mand deposits were held, not for transactions SPAWNED BY HIGH TAXES AND security, or 1llegal aliens without residence purposes, but simply to pay the banks, less GOVERNMENT REGULATIONS AND status-whose freedom to work ls restricted; than the total $226.2 billion of demand de­ LOSING REVENUE FOR ALL OF US and incentive to do additional work for those posits and $49.1 billion in currency calcu­ who would not do it if they were taxed. lated in Exhibit 1 was needed to produce the HON. JACK F. KEMP MEASURING THE SUBTERRANEAN ECONOMY legal GNP of $1,693 billion. In other words, We can estimate the size of the subter­ illegal use of currency exceeded $28.7 bllllon OF NEW YORK ranean economy by examining the composi­ and illegal GNP exceeded $176 billion. IN THE HOUSE OF REPRESENTATIVES tion of the stock of money, Mr M has two We should note two partially compensating 1 factors. Some currency is held abroad. Fur­ Thursday, February 2, 1978 components-currency and demand deposits. As an economy develops, ever more transac­ ther, some currency may be held, not to lul:)ri­ Mr. KEMP. Mr. Speaker, at too high a tions are typically carried out with checking cate the subterranean economy, but to store tax rate, taxes do not produce more accounts, and demand deposits grow more ill-gotten income. This amount is probably rapidly than currency. For years this held limited, however, since it is expensive to store revenue to government, because ulti­ wealth in non-interest bearing, non-appre­ mately people withdraw their services true for the United States. In 1892, there were $352 of currency per $1,000 of demand de­ ciating form during times of infiation. from the market economy if they do not posits; by 1941, there were only $219-a drop KEYNESIANS AND MONETARISTS receive an adequate aftertax reward. of two-fifths during half a century. Our theory :fits in very well with monetar­ Prof. Peter Gutmann has recently pro­ With the war came high income taxes, ra­ ists' views, since they believe all money is duced some important evidence to sub­ tioning and controls. As black markets and used for transactions purposes. It sems to stantiate this view. tax avoidance mushroomed, currency shot up :fit less well with Keynesian theory, since According to Professor Gutmann's faster than dema.nd deposits. By 1945, cur­ Keynesians believe money is held for specula­ estimates, there is a $200 billion subter­ rency reached $363 for each $1,000 in demand tive and precautionary uses as well as for ranean economy in this country which deposits, making up in four short years the transactions uses. operates on cash in order to avoid the decline of half a century. Never thereafter did But no one holds any legal speculative or the ratio of currency to demand deposits re­ precautionary balances in the form of Mi payment of taxes. We all know that this turn to the prewar level. Tax avoidance was anymore, since such balances can be held tn activity exists and on a large scale. here to stay. interest-yielding savings accounts or short­ It is clear to me that if tax rates were Still, there was some decline from wartime term money market instruments instead. reduced substantially that this subter­ levels. Currency dropped to $282 by 1950 and Only those with illegal speculative or pre­ ranean economy would evaporate and the cautionary balances wm hold them in the reached its postwar low of $249 per $1,000 in form of the currency component of Mi, and Government would be able to greatly in­ demand deposits in 1961. From that point on­ then only if they are deluded about the pro­ crease its revenues. The Federal Govern­ ward, however, currency again grew more rapidly. By 1976, currency reached $344 per spects for infiation. ment's share of this subterranean econ­ SUBTERRANEAN EMPLOYMENT omy would amount to more than $40 bil­ $1,000 of demand deposits. How much of the total money supply ls How many people does the subterranean lion at lower tax rates. used to lubricate the subterranean economy? economy employ? The answer depends on the I hope that my colleagues will consider We take the pre-World War II period, prior proportion of subterranean income produced Professor Gutmann's evidence carefully to steep income taxes, as normal. During by those employed elsewhere in legal, record­ before launching into another round of the :five years 1937-41, currency averaged $217 ed activities and the proportion produced by tax reform. per $1,000 of demand deposits. The difference those employed only in unrecorded activities. [From Financial Analysts Journal, November­ between this and recent values of the ratio Unfortunately we cannot measure this pro­ December 1977] may be taken as a measure of the amount of portion. We can, however, at least put the currency held for illegal purposes. In 1976, magnitude of clandestine employment into THE SUBTERRANEAN ECONOMY for example, the difference measured $127 perspective. (By Peter M. Gutmann) of currency per $1.000 of demand deposits. The $176 billion in 1976 illegal GNP cor­ The amount of currency in circulation out­ On this basis, of the average $77.8 billion respond to about 8.2 million nonagricultural side banks is incredibly, indeed suspiciously, in circulation outside banks in 1976, about jobs, using the job-GNP ratio from the legal large-$380.68 per capita in December 1976, $28.7 billion were held for illegal and $49.1 1976 GNP ($1,693 billion, distributed among 2164 EXTENSIONS OF REMARKS February 2, 1978 79 million nonagricultural jobs) . Most illegal being. I belonged! As an infant I belonged Minister of Health, estimated that income is probably produced by those also to my grandparents, aunts, uncles, cousins roughly 150,000 murders have been per­ employed in recorded jobs. But if even 10 per and they helped watch over me. I belonged petrated by the Amin regime. cent of the subterranean economy comes to the church, I belonged to the school, I be­ from those not otherwise employed, total longed to my neighbors. I belonged to my Mr. Kyemba said that Amin casually employment exceeds official statistics by some community ... or did I? gives orders to kill and the orders are 820,000. If 20 per cent comes from the official­ As a young woman, I was loved, was mar­ faithfully executed by his State Research ly unemployed, total employment is more ried. My friends, my church, my neighbors Bureau, a euphemism for Amin's secret than 1.6 million greater. shared my happiness. We, my husband and police. Membership in the bureau means Do these figures seem unduly large? Then I belonged! . . . or did we? having a license to kill, Mr. Kyemba said. compare them with a recent Bureau of Labor As a mother, the children became persons The former Health Minister said that Statistics announcement. The Bureau found so important that the church, the schools, these atrocities, as well as Amin's lavish nearly half a million jobholders previously the neighborhood became a part o! their personal lifestyle, are financed by na­ missed through failure to record adequately lives, the community cared! They thought hiring by new businesses. Then, too, the job they belonged! ... did they? tional funds. And the vast majority of total recorded by the states runs about 1.6 As a grandmother, I share the happiness national funds come fr.om coffee export million below the national figure complied o! my children, with their children. We zeal­ revenues. The soaring world price of cof­ by the Bureau. No one will bat an eyelash if ously guard against stumbling blocks put in fee has brought Uganda nearly $1 billion another million or two workers turn in un­ their path. We anticipate and fully expect in just more than 2 years. recorded activities. the community to be a stepping stone, not Uganda is the fifth leading source of CONCLUSION a stumbling block. My grandchildren think coffee for the United States. We cur­ What can be done about the subterranean they belong . . . do they? rently pay $300 million annually for economy? First, we must stop sticking our Judge Manos, just when di<1 I not belong Ugandan coffee. There can be little doubt heads in the sand, pretending it doesn't to the community? Was it as an infant, needing all the help and love from adults that President Amin has used some of exist. Second, we should revise employment, that money to eliminate thousands of unemployment and labor force figures to surrounding me? Was it as a young wife take into account reasonable estimates of striving earnestly to be a good partner? Was Ugandans because they were a real or those employed in unrecorded activities. it as a mother praying that my children imagined threat to him. Third, we should recognize that the subter­ would become wholesome and productive in­ The current issue of Newsweek con­ ranean economy is created by government. dividuals? Was it as a grandmother looking tains still another chapter in the shock­ Fourth, we should admit that the increasing to the future in a world that would serve ing and outrageous story of !di Amin. public contempt for the tax system and gov­ my grandchildren well so that they could in turn become good citizens? My resolution would give Americans the ernment regulation is causing the subter­ opportunity of helping end the saga of ranean economy to grow more rapidly, as the Had my community permitted lt I believe rapid growth of currency relative to demand that I could have become corrupted at any atrocities through this refusal to pur­ deposits shows. of the above stages. I believe ~ hat a com­ chase Ugandan coffee. munity that does not show concern with a · We must take a long, hard look at the desire to put forth good values and to per­ rules, regulations, restrictions and taxes that mit law enforcers to do their job without NEW TACKS AGAINST TERROR have spawned the subterranean economy. If judges making loopholes for criminals, that we fail to do so, an ever larger part of the total economy will go underground. community deserves what it gets! All of us, you and I, must be aware of what affects the HON. EDWARD J. DERWINSKI community, not only those to the left and OF ILLINOIS right of us but those in front and behind us! IN THE HOUSE OF REPRESENTATIVES CHILDREN: PART OF OUR VIRGINIA (Mrs. Roy) VERNON. COMMUNITY? Thursday, February 2, 1978 COFFEE AND ID! AMIN OF UGANDA Mr. DERWINSKI. Mr. Speaker, stronger international efforts to contain HON. ROBERT K. DORNAN terr.orism are long overdue. In this re­ OF CALIFORNIA HON. GLADYS NOON SPELLMAN gard, I have joined in cosponsoring leg­ IN THE HOUSE OF REPR.ESENTATIVES OF MARYLAND islation toward this end. However, this Thursday, February 2, 1978 IN THE HOUSE OF REPRESENTATIVES is an international not simply a domestic issue. Mr. DORNAN. Mr. Speaker, Ohio resi­ Thursday, February 2, 1978 I wish to call the attention of the dents were shocked recently when a U.S. Mrs. SPELLMAN. Mr. Speaker, Ugan­ Members to a very positive commentary district court judge overruled an ob­ dan dictator !di Amin is not the person in the Chicago Sun-Times of January 25, scenity indictment by the city of Cleve­ most of us would choose for company on the need to contain terrorist groups. land, questioning "whether children over that first bracing sip of morning The editorial follows: should be considered part of the com­ coffee. But he is, nevertheless, an unin­ munity." The indictment was against NEW TACKS AGAINST TERROR vited guest at many American breakfast In Paris, terrorists kidnap a top industri­ the Sovereign News Co. of Reuben Stur­ tables. alist. In Manitoba, a gunman with three man, identified as the largest porno­ Coffee, America's favorite breakfast hostages demands money and a flight from graphic distributor in the Cleveland drink, is also far and away Uganda's Canada. In Ohicago, three men who refuse a.rea, and the case has been appealed to largest and most important export, ac­ to help tn a tederal grand jury probe of ter­ the U.S. Supreme Court. In an open let­ counting for 85.5 percent of the coun­ rorist bombings await release from jail next ter to District Judge John Manos and try's revenues last year. The United week. the Supreme Court Justices, directed to Terrorist deeds not only remain an often­ States is Uganda's largest importing senseless threat to innocent people (execu­ the Cleveland Plain Dealer, Mrs. Roy market, buying nearly 40 percent of its tives seem esoecially vulnerable) but world Vernon expressed the feelings of many annual coffee yield. terrorism is rising after a lull. Without fresh citizens following Judge Manos' ruling. Today I submitted to the House of steps to combat it, the outlook is grim. Virginia Vernon's words apply to all of Representatives a resolution asking that Fortunately, some steps are under way. us who would be part of a community­ coffee manufacturers list the percentage A Senate committee holding hearings this a community not only of peers, but of of Ugandan coffee on the cans or pack­ week proposes a new anti-terrorism unit in generations: the Justice Department; an array of sanc­ ages of their products. I did so in the tions--financial, travel and others-on coun­ OPEN LETTER TO U.S. DISTRICT JUDGE JOHN belief that Americans should be able to tries that aid or abet terrorists, and new MANOS (U.S. SUPREME COURT JUDGES) choose to withhold economic support controls on explosives and nuclear materials. To accommodate a convicted pornographer from a regime which continually abuses The latter include "tagging" such materi­ you raise the question "whether children the human rights of its citizens. als in ways to help trace the source of should be considered part of the commu­ terrorist bombs, even after detonation. nity." Are not all human beings part of a My interest in this subject was first Though the State Department opposes community, be they young or old, well or aroused by CBS newsman Mike Wallace mandatory sanctions that might hamper sick? in an interview on "Sixty Minutes." In diplomats, safeguarding innocent lives may As a daughter, beloved by my parents, I the course of the interview, Mr. Henry well demand some such steps. Of more con­ was an integral part of a family, an essential Kyemba, formerly President Amin's cern is how to give anti-terrorist units the February 2, 1978 EXTENSIONS OF REMARKS 2165 tools they need without weakening constitu­ noted, the cocaine sniffer does not develop Education of the Handicapped Act, how­ tional liberties that safeguard basic free­ a "tolerance" for the drug-a condition that ever several questions were raised con­ doms--0r a nation's right to grant political requires him to use larger and larger doses cerning its practical implementation. It asylum. to get high. Nor does the "cokehead" suffer The problems are sticky, but refusing ref­ withdrawal symptoms, such as nausea or is to this problem of practical implemen­ uge to those who take innocent hostages and cramps, when he is unable to buy the drug. tation that I wish to address myself. denying skyjackers places to land are reason­ [Nevertheless, cocaine's stimulative and eu­ On October 26, I introduced a bill able starting points-along witlh sanctions phoric effects can create a strong psycho­ aragraph (A), such subparagraph shall Dr. Melvin Reinhart, took an airline be deemed to.be satii::fied by the enactment of flight on which another passenger suf­ [From the Washington Star, Jan. 31, 1978] legislation by such State providing (i) for the SPOILER'S ROLE IN RHODESIA establishment of statewide standards for spe­ fered a heart attack. Dr. Reinhart was cial education and related services; (11) for very disturbed that basic medical equip­ If the American people understood the systematic and thorough coordination of pro­ ment was not available to him and the spoiler's role which their government is play­ viders of special education and related E'erv­ other doctors on board, to assist the ing in the current Rhodesian negotiations, ices; and (111) for the establishment of re­ how long would they tolerate it? Not long, stewardess in caring for the heart pa­ we suspect. They would insist that Ambassa­ sponsib111ty in an agency of the State for the tient. In the true spirit of the hippo­ resolution of disputec; between educational dor Andrew Young be summoned from the agencies over responsibillty to provide special cratic oath, Dr. Reinhart promptly be­ spoilers' conclave at Malta this week, where education and relAted services to particular gan efforts to require airlines to carry another attempt is being made to revive the handicapped children.". basic medical supplies on their planes. faltering Anglo-American peace plan. And they would probably insist that the U.S. at SEC. 4. Section 614(a) is amended by add­ Through contacts with the Federal long last wish godspeed to those who now ing at the end thereof the following: "No pro­ Aviation Administration, it was learned seem on the verge of negotiating an internal gram established or revised pursuant to para­ that such equipment was not available peace in Rhodesia. graph (5) of this subsection shall be deemed on the airlines because their stew­ This, we say, is what would probably hap­ to be con tract for ser,,ices or a guarantee of pen if the complexities of the issue were educational achievement, but shall be re­ ardesses and pilots, and doctors and nurses who were on board, could be held understood. Unfortunately, they are not. It is garded as a statement of objectives or goals not widely understood that after years of for the purpose of planning.". personally and legally liable in suits growing out of the emergency care. The international clamor, Prime Minister Ian SEC. 5. The amendments made by this Act Smith has conceded the principles of uni­ shall take effect October 1, 1977. whole question of malpractice insurance versal suffrage and majority rule. It is not has received heightened attention in re­ widely understood that, in response to this, cent years and Dr. Reinhart's efforts three moderate black leaders-who are certainly points to the need for funda­ thought by informed observers to represent a SOCIAL SECURITY mental changes in this field. considerable majority of Rhodesian blacks­ In response to Dr. Reinhart's efforts, have negotiated with Mr. Smith a new constitution providing for assured "minor­ HON. BARBARA A. MIKULSKI my predecessor, Marvin Esch, introduced ity" representation (i.e., largely white) in OF MARYLAND legislation to provide legal protection to parliament; a bill of rights; an independent doctors and nurses and aircraft person­ IN THE HOUSE OF REPRESENTATIVES judiciary; and other institutional arrange­ nel who assist passengers with medical ments that seem fair and workable. It is not Thursday, February 2, 1978 difficulties. His legislation was supported widely understood that this "internal" Ms. MIKULSKI. Mr. Speaker, I wish by the Air Line Pilot Association and the breakthrough, proceeding from Mr. Smith's to bring to your attention a poem writ­ Department of Transportation. Unfor­ concession of universal suffrage, is on the tunately, this bill did not see action by verge of consummation if it is not derailed ten by one of my constituents, a retired by the foot-dragging of U.S., British and UN woman who is trying to live on a social the House of Representativec;. officials, who seem to think the black nego­ security pension. Clayre E. McCartle However, I strongJy believe in Dr. tiators should hold out for tougher terms. Whiteman has expressed the plight of Reinhart's efforts and feel that we Finally, it is not widely understood that our Nation's elderly, in this poignant should continue to push for legislation the U.S. is closely identified with the un­ poem: which would lift the prohibitive costs of yielding terrorist:-guerrilla "front" led by SoCIAL SECURITY malpractice insurance for those on board Joshua Nkomo and Robert Mugabe, which is (By Clayre E. McCartle Whiteman) airlines. It is frightening when one armed by the communists and supported by the five neighboring "front-line" African Oh, my life on social security, thinks of what the consequences might states. Has really been a blast. be if a person did not receive proper The peace terms of these "external" forces The prices keep on rising, medical care while in flight. It is a fact are extreme. Although Mr. Nkomo has made And the money doesn't last. that fatalities have occurred on airline occasional noises of moderation, Mr. Mugabe There isn't much that I can do, flights. How many people might have recently threatened to "bash" all the "reac­ I cannot work no more. been saved if medical equipment had tionary" participants in the internal nego- February 2, 1978 EXTENSIONS OF REMARKS 2167 tiations: a threat that may happily prove assist former spouses of Federal em­ dividual worker simply reduces the amount idle if peace comes to Rhodesia and his guer­ ployees in obtaining court-ordered pay­ of money available to the family for food, rilla troops begin to melt away. clothing and shelter. Meanwhile, the Nkomo-Mugabe faction in­ ments. I am introducing a revised version "Having only one source to turn to, the sists that Rhodesia's future must be settled of that bill today, so that there will be worker attempts to replace the monies ex­ between Great Britain (whose crown colony no doubt that it is intended for the ben­ propriated by government by escalating his Rhodesia was before declaring its independ­ efit only of former spouses, and/or chil­ wage demands on the employer. Thus begins ence unilaterally in 1965) and their "Patri­ dren, and not for any other purpose. the chain reaction which frequently leads to otic Front," whose "patriotic" activities con­ Thank you, Mr. Speaker. reduced employment opportunities and, sist largely of the ruthless murder of women, worse, relocation of the business. children and the elderly, mostly black. They "The simple and ironical fact is that the insist that Ian Smith be deposed, and that GOVERNMENT VERSUS WORKERS tax collector does not pay union dues, does they, the intruders and disturbers of the not walk the picket line, but is nevertheless peace, be handed immediate control of the the first beneficiary of any wage increase army and the police. In short, they demand HON. JOHN B. ANDERSON secured by the worker. This perfect stranger capitulation by the Rhodesian moderates; OF ILLINOIS gets his cut first, leaving a substantially re­ and they indicate no willingness to IN THE HOUSE OF REPRESENTATIVES duced amount for.the family." compromise. We couldn't say it better ourselves. What is so perverse about the U.S. position Thursday, February 2, 1978 is that the closer Ian Smith and the black Mr. ANDERSON of Illinois. Mr. moderates come to an agreement, the more 1978 PRAYER FOR PEACE BY DR. cozily we seem to collaborate with the U.S.­ Speaker, a constituent from Richmond, BASIL J. VLAVIANOS INTERNA­ British-UN cabal to undermine it. The Econ­ Ill., recently forwarded to me a copy of omist's Salisbury correspondent reported, on a "guest editorial" from the November TIONAL LAWYER, JOURNALIST, January 21: "There are signs that the (Patri­ 18, 1977, Wall Street Journal, with the AND PUBLISHER otic Front) is speeding up the war and de­ comment that, "to read such clear com­ liberately picking on black civllian targets in an effort to prevent a peaceful changeover monsense written by a union official HON. ROBERT A. ROE to majority rule. From Salle-bury, it appears is to restore one's faith in the future OF NEW JERSEY as if the British foreign secretary, Dr. Owen, of our Republic." He was referring to a IN THE HOUSE OF REPRESENTATIVES and the British commissioner-designate, press release issued by President Joseph Lord Carver, are actively discouraging an in­ Trerotola and Legislative Aide Nicholas Thursday, February 2, 1978 ternal settlement." Kisburg of Council 16 of the Interna­ Mr. ROE. Mr. Speaker, pursuant to the In harsher language, the U.S. risks playing tional Brotherhood of Teamsters, Chauf­ request of one of my distinguished con­ accomplice to further bloodshed by pursuing feurs, Warehousemen and Helpers of a Rhodesian settlement agreeable to radical stituents, the Honorable Herbert M. outsiders and guerrillas. This is the actual, America. The thesis of that statement Sorkin of Paterson, N.J., I insert at this but we cannot imagine the calculated risk of was that "government is in active com­ point in our historical journal of Con­ U.S. policy Why, then, do we take so sour petition and conflict in two areas with gress the following editorial which ap­ a view of the heartening chances of internal the individual worker: in taxing the em­ peared in the Greek Daily Proini of New peacemaking? ployer, the amount available for em­ York on January 3, 1978. The author, The reasons must necessarily be a matter ployee wages is reduced; in taxing em­ Dr. Basil J. Vlavianos, is an international of speculation. In Washington, we suppose, ployees, the amount available for food, lawyer, journalist, and publisher and has it may be thought more important to ap­ clothing and shelter is reduced. This in pease the demands of Rhodesia's "front-line" taught diplomatic history for 14 years as neighbors than to bring internal peace to the turn forces escalating wage demands an adjunct professor of public affairs and country. The effect of that policy, intended which result in reduced employment op­ regional studies at New York University. or not, ls to sacrifice the moderate majority portunities and even business reloca­ He also served as a consultant to the in Rhodesia, black a.nc! white, to considera­ tions." Greek delegation at the United Nations, tions of African realpolitik. Mr. Speaker, while the Teamsters' re­ San Francisco Conference in 1945. This is discreditable enough. It becomes lease had specific reference to the plight This editorial expresses a prayer for unconscionable if one considers how close Mr. of New York City and State and local peace that all of us may well be inspired Smith and the black moderates a.re to a peace tax policies, the editorial points out that and guided by in our daily pursuits, as settlement and a. new constitution. As noted it is just as applicable to Federal social by Morley Safer on the CBS program "60 follows: Minutes" Sunday evening, Rhodesia is one of security tax policies. I commend the edi­ PRAYER FOR 1978 the few functioning biracial societies in torial to the reading of my colleagues : Omnipotent God of Goodness, Africa.. It is not a police state. Its segrega­ (From the Wall Street Journal, Nov. 18, 1977] We salute you with love and humility today tionist policies are disappearing. The army GUEST EDITORIAL as we start once more to couut the days and and police a.re predominantly black, and, so months from the beginning. We embark with We wrote the other day that no one will be good faith and good intention to accept the organized, can hardly be accounted depend­ fooled by the Senate's tactic of levying more able instruments of white tyranny. good and to do good-for ourselves, for our of the Social Sec~rity tax on employers, that In bitter truth, the Anglo-American pol­ fam111es, for our society, for the country in ."it won't take workers long to figure out which we live, for the country of our origin, icy on Rhodesia seems to be influenced not that employere: can only throw so much only by dubious strategic calculations, but for the entire world. Help us to discern what money into a. wage pot, and that if the gov­ is good and to a.void 111. Protect us from evil. also by an uncha.racterlstic'l.llv petty-minded ernment takes more workers get less." British resentment that Rhodesia has made Let the light of truth shine inside us and all a success of unauthorized independence. This sparked a call from Joint Council No. over the world. Against all odds and predictions, Rhodesia 16 of the International Brotherhood of Many of the opportunities you offered us has become a country in being. It needs only Teamsters, Chauffeurs, Warehousemen and last year we lost. Our weaknesses prevailed. the support of the outside world to make Helpers of America. The Teamsters wanted Show us new opportunities, and arm our reasonable democratic terms with the black us to notice the press release just put out by hearts with the sensitivities to respond to majority. Council 16 President Jose~h Trerotola and them, our minds with the ability to recognize Legislative Aide Nicholas Kisburg. Its thesis That the U.S. might not only neglect but them, our souls and our wills with the power was that New York is going to the dogs be­ to use them. actually undercut this success is an offense cause taxes are too high. Mr. Trerotola com­ to sense and conscious. Let us call a. halt to Give us a.gain the blessing of Peace this this foolish policy-now. plained that "state and local government year. Disreg.!lrd that we squandered last year, taxing policies can and do nullify private sec­ as well as those which preceded, by cultivat­ tor union power." ing lies and violence, by organizing wars and The Teamsters continued: other calamities; that we did not charge our­ "There remains one irrefutable reality: selves sincerely, tangibly and seriously with H.R. 10705 government is in active competition and con­ the task of securing peace; that we let the fiict in two areas with the individual worker. petty and temporary interests govern our HON. G. WILLIAM WHITEHURST "What government extracts from the in­ lives. dividual employer irrevocably reduces the OF VIRGINIA Enlighten us to see and to say the truth a.mount of money the employees of that em- with courage, thoughtfnlness and love: to IN THE HOUSE OF REPRESENTATIVES ployer will be able to secure through union look high; to walk straight; to accept criti­ Thursday, February 2, 1978 collective bargaining of individual negotia­ cism; to recognise and accept our mistakes; tion. to forgive others more easily than we forgive Mr. WHITEHURST. Mr. Speaker, on "What government extracts in the form ourselves. February 1, I introduced H.R. 10705, to of open and concealed taxes from the in- Without your assistance we are nothing. 2168 EXTENSIONS OF REMARKS February 2, 1978 Without your divine light we are blind. ahead of the national average for outlays per spending is also cut, tax reductions are a Without your love we cannot know happi­ resident by the state and local governments. formula for fiscal catastrophe. ness. Not surprisingly, a major problem area has If spending isn't kept in line with tax been public welfare, where New York's per revenues, the most Ukely result is a flurry capita outlays were 92 percent above the of wild budget cutting at the last minute '.XEROX PRESIDENT ADDRESSES average. In outlays !or health services, New to avert financial collapse. ROCHESTER CHAMBER OF COM­ York led the country. The final prospect, of course, is bank­ MERCE If taxes don't bring in all the money you ruptcy. plan to spend, you have to borrow, and New No businessman in his right mind would York's state and municipal governments are permit himself to .be lured by t ax benefits HON. FRANK HORTON 128 percent above the national average. into a state where such fiscal sandbagging OF NEW YORK The interest on that debt totaled $142 per was a strong possibility. resident, leading the national average by Permanent and significant tax reduction IN THE HOUSE OF REPRESENTATIVES close to 200 percent. can be achieved only by permanent and sig­ Thursday, February 2, 1978 Because industry is such a major source nificant reductions in public spending. Let's of both tax revenue and jobs, the decline o! ~xamine a few possibilities. Mr. HORTON. Mr. Speaker, on Janu­ industry in New York State, combined with There are instances where state regula­ ary 9, 1978, David T. Kearns, president of heavy increases in publlc spending, has tions impose unnecessarily harsh spending the Xerox Corp., addressed the Roches­ crea.ted a near-impossible burden !or the requirements on municipalities, on public ter Chamber of Commerce on the need state's taxpayers. institutions and on commerce and industry. to improve the economic climate in New The various state and local governments State nursing-home standards, which di­ York State, the Empire State. While pre­ collected more than $11 hundred per New rectly affect medicaid outlays, are one ex­ Yorker in taxes during 1976. That is 56 per­ ample of out doing the federal government. senting a very clear picture of our State's cent higher than the national average of $730 Such regulations and mandated standards unemployment statistics, revenue in rela­ per individual. must be revised. tion to expenditures, and the relative The result of all this taxing 1s the classic Some of these state-mandated standards position of the snowbelt to the sunbelt vicious cycle. Tax increases cause industry to create burdens so large that municipalities States, Mr. Kearns eloquently demon­ vote with their feet and leave the state, must understandably ask the state for the strates some of the ways in which New driving individual tax rates up and thereby money to carry them out. But, at the same York can reverse an unhealthy economic increasing the stampede to greener tax time, perhaps too much dependence has been trend. Numbering among his many sound pastures. put on state aid. If you feel you can turn This vicious cycle must be broken, and it to a higher authority for financing, you tend and progressive recommendations is a must be broken now. Fortunately, our public to get perhaps a bit too expansive about proposal on tax reform, a key to a re­ officials have become ·increasingly aware of what you want to do. So I think it is fair vitalized and fiscally sound recovery. I the magnitude of the problem and have al­ to ask local government to be more self­ strongly recommend Mr. Kearns' address ready begun to take steps toward a solution. reliant and more realistic. before the Rochester Chamber of Com­ It has been especially heartening to see Realistic management is also very impor­ merce to my colleagues. The text fol­ organized labor and business management tant for New York's public school districts. lows: putting aside their traditional roles as ad­ During the 1975-76 school year, New York versaries and joining forces. The New York led the nation in spending on it s element ary LET'S MAKE NEW YORK THE EMPIRE STATE State AFL-CIO threw its full support behind and high schools-almost $2,200 per pupil. AGAIN the Associated Industries organization in its This was 57 percent greater than the na­ The thoughts I want to share with you efforts to sell a major business incentives tional average. this evening have their origins, naturally package to Albany. This combined effort These figures must raise some questions. enough, in my experience as a businessman. succeeded. Has there been too much wasteful experi­ But believe me when I say that I am not Among other things, the resulting law mentation with curricula? Are learning ma­ thinking only of industry's needs. My con­ provides a temporary increase in the present terials being purchased only to be discarded cern is with the well-being of every resident investment tax credit, and it extends the job in one or two years? Is adequate t hought of the state. New York can be a good place incentive program o! state and local tax and care being given to the procurement to live and work in only if it enjoys a healthy benefits for new or expanded industrial of school equipment ? Is every headquarters economy and its governmental structure at facilities. staff position making a contribution ade­ every level, has sound financial under1Jin­ We can also be grateful that New York's quate to justify its effect on t he payroll? nings. elected leaders of both parties recognize the Every board of education in t he stat,. Unfortunately, as well all know, the state's need to cut taxes. As you know, last week should be seeking answers to such questions. economy and its public finances have been Governor Carey proposed a program that The level of social service benefits in New in growing disarray for a long time. Many would cut 1978 taxes by $750 million. York State requires rethinking. New York of you are painfully familiar with the litany Another positive note. We have growing has always prided itself on its generosity of depressing statistics that spell O'ut the evidence that industry will invest in New in caring for those who cannot care for state's problems. York State if it is given the right kind of themselves. This is admirable, but the fact Nevertheless, I think it is worth our while incentive. One of the most striking examples remains that benefit levels in New York to review some of these facts in order to put can be found right here in Rochester. I'm re­ State are far higher than those in any ot her the situation in proper perspective. ferring to the plant that General Motors ls state. Let me share with you some significant in­ building in the Outer Loop/ Industrial Park A package of welfare reforms has been formation provided by Fritz Grasberger of to make emission-control devices. develope~. by your chamber, in conjunction Rochester's Center for Governmental Re­ The plant means 450 new jobs. GM's move with other upstate chambers. It is a com­ search. is the direct result of local teamwork. Your prehensive, well thought -out package that One of the more important indicators of own chamber executive, Tom Mooney, and certainly merits very serious consideration. the state's economic health 1s what has Jack Hostutler of IMC worked with Mayor However, there is a bot tom line of social been happening to the number of people Ryan and other city officials to develop an service expense that cannot be trimmed in manufacturing jobs. In 1960 New York attractive land-purchase and tax incentive simply because it represents a very large had 1.9 million people employed in manu­ package. number of legit imate welfare clients. facturing. By 1976 the number had dropped Things are happening on a state-wide To a very real extent, this is an imported to 1.4 million, a decline approaching 25 per­ level, as well. Earlier I talked about the infla­ problem, the product of national forces be­ cent This is particularly alarming because, tion of public-sector employment and the yond local control. People in need of jobs during that same 16-year period, nationwide serious decline in indust rial employment have migrated to the cities of New York, as manufacturing employment increased by 13 since 1960. But between 1975 and 1976, pub­ well as other northeastern states, from all percent. lic-sector employment in the state actually over the country. As they came into the While this industrial job erosion was going decreased 5 percent. And, as important, cities, affluent residents and business con­ on, the number of state and local public manufacturing employment increased. Not cerns moved out, and there weren't nearly employees increased by 50 percent. Fewer by much, only a bare 1 percent. But after enough jobs available for the newcomers. than 840,000 government workers managed 15 years of steady decline, even 1 percent is The supreme court ruled several years ago our public affairs in 1960. By 1976 it took a welcome change of direction. that municipalities cannot set up residence more than 1.2 million. Now I certainly don't mean to say that requirements for eligibilty for social services. These were years or public expansion New York has its problems licked. The state And so the cities found themselves strapped throughout the country, especially in urban has a long way to go. New York City is still to provide these legally mandated services to areas. But New York State has consistently in a very precarious situation, taxes and an ever-increasing clientele even as their been in the forefront of public spenders. A state debt obligations are st ill deadly, and sources of revenue eroded. look at the most recently available figures, there is hardly any indication of a stam­ I am convinced tha.t welfare is a national for the 1976 fiscal year, offers a good picture pede of industry back from the sun belt. problem and should be treated as one. The of the situation. Even the tax cuts that the governor and the Coalition of Northeast Governors and New In most categories, only Alaska and the state legislature are so determined to de­ York's Congressional representatives are try­ District of Columbia spend more per in­ liver are surrounded by uncertainties. It is ing to make this happen. dividual resident. New York was 46 percent all well and good to cut taxes, but unless But while they work to turn the federal February 2, 1978 EXTENSIONS OF REMARKS 2169 government around on welfare, local govern­ borders. The net effect, or course, is to en­ filled with bright, tough, innovative people ment cannot shirk its responsibility to ad­ courage out-of-state expansion. The Asso­ that I believe wm take the actions to solve minister welfare equitably and efficiently. ciated Industries/ Empire State Chamber the problems that face us. Thank you. Improved management of all public pro­ formula would provide franchise tax cred­ grams and services is a necessity in every area its for out-of-state sales. and at every level of state and local govern­ By the same token, I think serious thought SPOILER'S ROLE IN RHODESIA ment. The so-called sunset law approach should be given to eliminating the unin­ makes a great deal of sense because it means corporated business tax. This is a classic case that every activity, every project must be of double taxation of the small businessman, HON. LARRY McDONALD scrutinized when budget time rolls around. since he must also pay personal income taxes OF GEORGIA Ideally, nothing should be taken for granted, on the same income. IN THE HOUSE OF REPRESENTATIVES and the benefits of every program should be Finally, New York's business groups agree measured carefully--even painfully-against on the need for a lowering of the upper Thursday, February 2, 1978 its costs. brackets of New York State's personal In­ Mr. McDONALD. Mr. Speaker, the Let me digress for a moment. It is all very come tax. This would certainly make the Washington Star is to be congratulated well for those of us in industry to lecture state a more attractive place to live and work government officials on the importance of in. for its lead editorial on Tuesday, Jan­ effective management. But we have our own Now it's all very well and good for industry uary 31, 1978, on Rhodesia. It pointed out problems in this area. It is particularly evi­ to tell government what to do. But we have how wrong our policymakers are and dent where foreign trade is concerned. to be willing to help. And we are, through how they are actively on the side of the It is no secret that our international bal­ the mechanism of advisory boards. It is a terrorists in Africa, while professing to ance of payments is a sorry spectacle. A good way business experts can provide the public be for "one-man, one-vote." In actuality part of this is a function of the international sector with consultative services, and I oil situation, and lack of economic expansion would like to see more done along these what they are pushing for is the creation in Japan and Europe. But the competitive­ lines. of yet another African dictatorship with ness of business in Japan and Western We at Xerox have some experience with the population enjoying no freedom or Europe is a major factor. That's why the this kind of arrangement. A short time ago civil rights. Our policymakers will not Carter Administration has been conducting we loaned Tom Winter, now our corporate even permit Mr. Ian Smith to proceed unusually tough negotiations with the Japa­ controller, to the state of Connecticut for a with his plans for majority rule if they nese Government to reduce exports to the five-month stint as chairman of a special United States and lower barriers to our im­ business task force to study the state's finan­ can help it, so committed are they to ports. cial systems and administrative services. Africa. It would certainly be interest­ Such government initiatives won't do the More than two-thirds of the group's ad­ ing if our policymakers submitted our trick alone. I am afraid U.S. industry is losing ministrative recommendations have been Rhodesian policy to a vote of the Ameri­ its technology and business management adopted, and a major proposal for reorgani­ can people, but the last thing in the leadership. We can meet foreign competition zation of some executive functions was en­ world, they care about, if the subject only if we pull up our socks and do a better acted into law by the legislature. job of product development and of operating Last year a bi-partisan proposal to estab­ can be avoided, is how the American efficiently. Ever increasing cost effectiveness lish a permanent state management advisory people feel. The plain facts are, as the is an equally urgent requirement for success board was passed by the New York State Leg­ editorial makes clear, that neither An­ against foreign competition, just as it is an islature only to be vetoed by the governor. drew Young, our policymakers, nor the urgent requirement for New York State's I would like to urge Governor Carey to re­ United Kingdom wants Mr. Ian Smith public sector. consider his position and support the es­ to succeed in his plans for majority rule It is very important for public administra­ tablishment of such a board. in Rhodesia, all for different reasons. tors and legislators to adopt a "show-me­ Business advisory boards work at the local why" attitude toward every new proposal level, too. About two years ago, Niagara Falls, The editorial follows: that would add to expenditures. By the same New York, was in a real fix. Its 1975 deficit SPOILER'S ROLE IN RHODESIA token, this attitude should be applied to ex­ was $1.5 million, and it was on the verge of I! the American people understood the cessive regulation of business and industry. defaulting on its bonds. Local ccmpanies of­ spoiler's role which their government ls play­ Unrealistic environmental and safety stand­ fered to help, and the city council established ing in the current Rhodesian negotiations, ards have added unreasonably to the cost of a city management advisory board. Partici­ how long would they tolerate it? Not long, doing business. pating companies provided a core group of we suspect. They would insist that Am­ There should also be a major effort to over­ top executives and made other executives bassador Andrew Young be summoned from haul the tax structure so that it will be not available as functional consultants. the spoilers' conclave at Malta this week, only less burdensome but more equitable. Working closely with the city manager where another attempt ls being made to Property taxes offer one of the greatest op­ and his department heads, the board did a revive the faltering Anglo-American peace portunities for improvement. The New York thorough study of municipal operations and plan. And they would probably insist that Times, in an editorial on December 1, noted came up with a number of proposals that tre U.S. at long last wish godi:::peed to those that New York City's assessors have been far were adopted. The city ended 1976 in the who now seem on the verge of negotiating an from consistent in setting values, a problem black. internal peace in Rhodesia.. that is hardly confined to New York. Recent The Niagara Falls model can be used by This, we say, ls what would probably hap­ state court decisions have required equality city and county governments throughout the pen if the complexities of the issue were of treatment for all taxpayers. state, with the backing of local business en­ understood. Unfortunately, they a.re not. It This ls a complex problem because fair terprise. I would suggest going even further ls not widely understood that after yea.rs of market value is always changing. For indus­ and establishing similar advisory groups in international clamor, Prime Minister Ian try it has been especially onerous because local school districts. There is no doubt in Smith has conceded the principles of uni­ commercial and industrial properties are in­ my mind that the net result would be a great versal suffrage and majority rule. It ls not variably assessed higher than residential improvement in government operations. widely understood that, in response to this, properties, in relation to fair market value. In the final analysis, though, advisory bod­ three moderate black leaders-who are It is both the legal and the moral responsi­ ies can only advise. Public administrators thought by informed observers to represent b111ty of every community to address this and legislators are still the people who have a considerable majority of Rhodesian problem. The appropriate solution would to make the hard decisions, and this is a blacks-have negotiated with Mr. Smith a seem to be a periodic reappraisal of all tax­ time when they must even be willing to risk new constitution providing for assured "mi­ able properties in each jurisdiction and the unpopular decisions. noritv" representation (i.e., largely white) in use of full market value to determine as­ I think there is evidence that the public parliament; a b111 of rights; an independent sessed valuation. wants responsible government. For the past judiciary; and other institutional arrange­ several years a number of school districts ments that seem fair and workable. It is not Associated Industries and the Empire State have seen their budget proposals voted down, Chamber of Commerce have developed a widely understood that this "internal" and pledges of fiscal responsibility have breakthrough, proceeding from Mr. Smith's number of additional tax-reform proposals helped a number of candidates to win office. that appear very sensible. One ls the perma­ concession of universal suffrage, is on the The message, I susnect, is that it may fi­ verge of consummation if it ls not derailed nent elimination of the present so-called nally be more politically exnedient to act re­ temporary 20 percent surcharge on the cor­ by the foot-dragging of U.S., British and UN sponsibly than to create costly new programs. officials, who seem to think the black negoti­ porate franchise tax. Another would end The problems are tough but they are !'olv­ discriminatory treatment of smaller New ators should hold out for tougher terms. able. I have travelled all over the world in the Finally, it ls not widely understood that York companies in interstate commerce. At past two and a half years. I feel stronger present, the franchise tax is allocated in such the U.S. ls closly identified with the unyield­ than ever that while the democratic/ capital­ ing terrorist-guerrilla "front" led by Joshua a way that credits are granted for places of ist system is not perfect, there is none better. Nkomo and Robert Mugabe, which is armed business located out of state. But no such This nation did not Just happen. It was by the communists and supported by the credit ls granted to a company without such built by bright, tough, innovative people. five neighboring "front-line" African states. out-of-state facilities, even if a large propor­ I am ontimistic a.bout the future bei::ause The peace terms of these "external" forces tion of its business is done beyond New York's this room, this state and our country are are extreme. Although Mr. Nkomo has made CXXIV--137-Part 2 2170 EXTENSIONS OF REMARKS February 2, 1978 occasional noises of moderation, Mr. Mug­ ing a show for years which has become a in our democratic Republic. It took a abe recently threatened to "bash" all the magnet for mainland visitors and gala great man to lead this country through "reactionary" participants in the internal negotiations: a threat that may happily gatherings of islanders. Every 2 years, war and then reunite it in peace and prove idle if peace comes to Rhodesia and in Waimea, on the big island of Hawaii, Abraham Lincoln was such a man. his guerrilla troops begin to melt away. Ms. Perry-Fiske produces "Old Hawaii In designating his birthday as a na­ Meanwhile, the Nkomo-Mugabe faction in­ on Horseback," an extravaganza which tional holiday, we would give official sists that Rhodesia's future must be settled includes everything from island prin­ sanction to a widespread observance al­ between Great Britain (whose crown colony cesses to Hawaiian cowboys, from sea ready celebrated in over 30 States. In Rhodesia was before declaring its independ­ captains to missionaries, portrayed in a that way we would pay long-due tribute ence unilaterally in 1965 )' and their "Pat­ riotic Front," whose "patriotic" activities sweep of local history. Chronologically, to the sure instincts of our people. consist largely of the ruthless murder of the show begins with the arrival of Capt. Said Woodrow Wilson: women, children and the elderly, mostly George Vancouver who brought the first Lincoln was a very normal man with very black. They insist that Ian Smith be de- cattle to the islands, and Capt. Richard normal gifts, but all upon a great scale, all posed, and that they, the intruders and dis­ Cleveland who brought the first horses knit together in loose and natural :rorm, like turbers of the peace, be handed immediate to Hawaii. the great frame in which he moved and control of the army and the police. In short, dwelt. they demand capitulation by the Rhodesian Anna Perry-Fiske is a woman of truly moderates; and they indicate no wlllingness · remarkable talents. This extraordinarily More than a gesture, such an act would to compromise. disciplined woman not only originated encourage the study of his life, the What is perverse about the U.S. position this show, she also wrote, directed, and thoughtful scutiny of his character, in is that the closer Ian Smith and the black produced it. In addition, she researched the context of our history, past and pres­ moderates come to an agreement, the more and designed every costume, matched the ent. While underlining Stanton's classic cozily we seem to collaborate with the U.S.­ horses, drilled the riders, and made all tribute-"Now he belongs to the ages"­ British-UN cabal to undermine it. The Econ­ the hats. When she is not involved with it would emphasize that Lincoln also be­ omist's Salisbury correspondent reported, on the plans for "Old Hawaii on Horseback," longs in a special way to America and January 21: "There a.re signs that the (Pa­ to the people whom he loved and for triotic Front) is speeding up the war and Ms. Perry-Fiske can be found tending deliberately picking on black civ111an targets the Anna Ranch (the site of the show) whose freedom and unity he gave his life. in an effort to prevent a peaceful change­ which was started by her New England I would hope that my colleagues would over to majority rule. From Salisbury, it ap­ grandfather, Thomas Lindsey. join me in paying tribute to one of the pears as if the British foreign secretary, Dr. There will be only one performance of greatest of Americans by supporting this OWen, and the British commissioner-desig­ "Old Hawaii on Horseback": May 21 at effort to designate February 12, Abra­ nate, Lord Carver, a.re actively discouraging 1 p.m. All moneys collected for admission ham Lincoln's birthday, as a national an internal settlement." holiday. In harsher language, the U.S. risks play­ go to the Hawaii Heart Association or to­ ing accomplice to further bloodshed by pur­ ward the purchase of cardiac equip­ suing a Rhodesian settlement agreeable to ment in big island hospitals. Addition­ radical outsiders and guerrillas. This is the ally, there are "heart barrels" set up on actual, but we cannot imagine the calcu­ the show grounds to receive contribu­ SOUTH AFRICA AND THE IMF lated risk of U.S. policy. Why, then, do we tions. All time, labor, materials, and take so sour a view of the heartening chances equipment are donated, and numerous HON. TOM HARKIN of internal peacemaking? civic agencies, business firms, and indi­ The reasons must necessarily be a matter OF IOWA of speculation. In Washington, we suppose, viduals contribute invaluable services. IN THE HOUSE OF REPRESENTATIVES it may be thought more important to ap­ This amazing showpiece of Hawaiian Thursday, February 2, ·1978 pease the demands of Rhodesia's "front-line" history, set amidst gentle rising hills neighbors than to bring internal peace to chartreuse-green pastures, lava-rock Mr. HARKIN. Mr. Speaker, on Christ­ the country. The effect of that policy, in­ fences, eucalyptus trees, ti hedges, and mas Eve, the Washington Post reported tended or not, is to sacrifice the moderate tree ferns, is more than spectacular, that the U.S. Government is continuing majority in Rhodesia, black and white, to more than fantastic. It is history come to provide financial support for the ra­ considerations of African real-politik. alive-a brilliant array of characters cial policies of South Africa through the This is discreditable enough. It becomes from the past. Anna Perry-Fiske deserves International Monetary Fund. The arti­ unconscionable if one considers how close cle clearly points out the irreconcilable Mr. Smith and the black moderates are to our praise and admiration for she creates a peace settlement and new constitution. As an event which is enjoyed by thousands fact that although the U.S. officially de­ noted by Morley Safer on the CBS pro­ of spectators, and appreciated by count­ nounces the South Africa Government's gram "60 Minutes" Sunday evening, Rhodesia less heart patients unable to attend. racial policies. $107 million of the IMF's is one of the few functioning biracial so­ total $463 million loan to South Africa cieties in Africa. It is not a police state. Its came from the U.S. contribution to the segregationist policies a.re disappearing. The IMF. army and police are predominantly black, ABRAHAM LINCOLN For over the last 2 years, Congress and, so organized, can hardly be accounted dependable instruments of white tyranny. has struggled to make human rights a In bitter truth, the Anglo-Amet"ican pol­ cornerstone of our foreign policy. Yet if icy on Rhodesia seems to be influenced not HON. NEWTON I. STEERS, JR. the United State·; is to achieve any credi­ only by dubious strategic calculations, but OF MARYLAND bility in this area, it must attain at least also by an uncharacteristically petty-minded IN THE HOUSE OF REPRESENTATIVES some degree of consistency in its human rights policy. Either human rights is a British resentment that Rhodesia has made Thursday, February 2, 1978 a success of unauthorized independence. valid consideration for all U.S. interna­ Against all odds and predictions, Rhodesia Mr. STEERS. Mr. Speaker, Abraham tional funding, or it is valid for none. has become a country in being. It needs only Linooln, the 16th President and first Last fall, in the face of dire predictions the support of the outside world to make Republican leader of our Nation is un­ made by the World Bank, strong human reasonable democrtaic terms with the black disputably one of the greatest men in rights language was incorporated into majority. the history of our country. He holds a That the U.S. might not only neglect but the authorization bill for the interna­ actually undercut this success is an offense unique place in the hearts of our peo­ tional financial institutions. None of to sense and conscience. Let us call a halt ple, for as George Washington is rightly these multilateral lending organizations to this foolish policy-now. celebrated for bringing this country into have collapsed or ceased functioning. being, so Lincoln deserves a like recogni­ Some will argue that the IMF is A TRIBUTE TO ANNA PERRY-FISKE tion for saving it. "unique" in its functions. That its loans He led our Nation through the dif­ are to relieve balance-of-payment prob­ ficult ordeal of the Civil War, and under lems and not to aid in development. But is HON. DANIEL K. AKAKA his leadership we came out stronger than uniqueness sufficient enough to outweigh OF HAWAII before. His leadership throughout the human rights considerations? And is not IN THE HOUSE OF REPRESENTATIVES war resolved, directly and indirectly, money fungible, and once lent difficult Thursday, February 2, 1978 fundamental issues as to the nature of to trace to a specific expenditure? Yet the federal system. His efforts in be­ if a country receives $463 million from Mr. AKAKA. Mr. Speaker, Hawaiian­ half of freedom and equality for all the IMF it has the ability to spend $463 born Anna Perry-Fiske has been design- mankind ended the problem of slavery million on something-and that some- February 2, 1978 EXTENSIONS OF REMARKS 2171 thing could be on it.s military as in South South Africa. wasn't among them. But, payments problem caused by external factors Africa. the size and importance of the aid it received beyond its control. As the debate and vote on the IMF from the IMF make it perhaps the best mus­ However, those who oppose that policy tratlon of the problem. point out that the United States frequently supplementary financing facility nears, The IMF's balance-of-payments assistance has used its votes and lntluence in other I urge all my colleagues to read the to South Africa. the la.st two years was greater international lending agencies such as the following Washington Post article. While than the combined IMF assistance to all World Bank, the Asian Development Fund some of us may not understand all the other African countries the same period. In and the Inter-American Development Bank intricacies of the international financial those two years, only two other na. tions, for frankly political purposes. systems, all of us should at least know Brita.in and Mexico, were bigger beneficiaries The Carter administration has been espe­ and consider the ramifications of the of IMF aid. cially active in applying human rights con­ decisions made there: Of the total received by South Africa, an siderations to its votes in many of these in­ estimated $107 mlllion came from the U.S. stitutions. Recently, !or example, Washington UNITED STATES HELPED VORSTER GET LOANS government's contribution to IMF funds. blocked an IADB loan to El Salvador for a FROM IMF Even more important, the United States, as hydroelectric project because of human (By John M. Goshko) the IMF's largest contributor and most in­ rights factors. Then, when U.S. officials Despite its official criticism of South fiuentia.l member, probably could have detected improvements they wanted to en­ Africa's racial policies, the United States has blocked the South Africa loans by objecting. courage, Washington reversed itself and helped Prime Minister John Vorster obtain Instead, U.S. representatives on the IMF's offered to put up roughly half the loan. $463 milllon from the International Mone­ executive board supported the South African In the view of human rights activists tary Fund to combat his country's economic requests during closed-door deliberations. South Africa has been treated more favorably problems. That- ls revealed by minutes of executive by the United States and other industrial Rooted in that action is a. case study of boa.rd meetings, obtained by writers James powers dominating the IMF. They point to the contradictory choices confronting U.S. Morrell and David Glsselq t:~s t working on the sizeable U.S. and European investments officials who must work out a design for fur­ a South Africa study for the Center for In­ there, the high percentage of South Africans thering U.S. interests and policy objectives ternational Policy, a. private, Washington­ foreign debt held by American and Euro­ on a global basis. ba.sed political research group. pean banks and the strategic importance to Specifically, U.S. support of South Africa. The documents show the process began in the West of South Africa's mineral exports. in the IMF raises questions about whether January, 1976, when South Africa applied to In the study they a.re preparing, Gisselquist there ls a. built-in clash between the political the IMF for help in fighting problems it said and Morrell cite these charges and argue that and economic goals of Washington's foreign had been ca.used by rising imports, a slump political considerations should not-indeed, policy. in exports and resulting drain on reserves. cannot-be divorced from any assessment of On one side, there is the concern of the During subsequent internal IMF discus­ South Africa's economic situation. United States, which played the lea.ding role sions, according to the documents, Thomas They contend that South Africa's economic in creating international lending agencies Leddy, one of the U.S. delegates to the execu­ problems primarily a.re due not to an like the IMF, that the integrity and impar­ tive boa.rd, strongly endorsed the South externally ca.used trade imbalance, but to tiality of these institutions be protected so African requests. overspending rooted in the high cost of they can perform the jobs for which they With this U.S. encouragement, the IMF repressing the 83 per cent of the population were designed. gave South Africa loans totalllng $366 mil­ that is black or colored. In the case of the IMF, that job is to help lion in 1976. That was during the Ford ad­ To buttress this argument, they cite a 130 member countries overcome threats to ministration when U.S. policy, under Secre­ confidential IMF study in April that lists their economies ca.used by adverse trade bal­ tary of State Henry A. Kissinger, tended to South Africa's defense budget as "a. major ances-imports outstripping exports-that emphasize the carrot rather than the stick cause of the rapid increase in total current seriously deplete gold and currency reserves. in dealing with South Africa. expenditure; it's share of total expenditure The success of the IMF's ba.11-out opera­ has risen from 14 per cent in 1973-74 to tions, U.S. officials note, ls important to every The documents do not cover IMF delibera­ tions on South Africa in 1977. However, dip­ 20 per cent in 1976-77." country engaged in lnterna.tlona.l trade. If a "As a. grisly footnote to the IMFs aid to country, particularly a. large country like lomatic sources say, U.S. delegates to the IMF have continued to support additional South South Africa.,'' Gisselquist and Morrell add, South Africa., runs into balance-of-payments "the April, 1977, IMF study said that the problems that make it unable to sell prod­ African loan requests through the first year of the Carter administration. increase in mmtary spending in 1976-77 ucts and pay its foreign debts, the resulting came to $450 milllon-almost exactly the cha.in reactions could disrupt lnterna.tlona.l As a. result, by October, total IMF a.id to South Africa had mounted to $463 million. amount of IMF assistance." trade and monetary systems. The executive boa.rd minutes obtained by For that reason, officials say, the United These loans were made at the same time the States must treat loans ma.de by the IMF Carter administration, in line with its much­ the two writers show that the only delegate differently than U.S. a.id granted on a direct, advertised championing of human rights, to raise these points was Antoine W. Yam­ government-to-government basis. was taking an outspokenly critical task eogo of Upper Volta, representing 17 black Washington, they argue, must set an ex­ toward the Vorster government. African countries. ample for other members by ensuring that The only doubts voiced by delegates from When asked a.bout the apparent contra.­ industrial nations involved questions a.bout U.S. votes in the IMF are strictly in accord­ dictions, administration officials reply that ance with the agency's rules and economic whether South Africa. had ca.used its prob­ Washington has no single yardstick by which lems by keeping sizeable gold stocks off the objectives rather than allowing them to be economic decisions on South Africa a.re influenced by political considerations. export market in anticipation of higher made. world prices. However, that argument increasingly has Since 1964, for example, U.S. policy has pro­ been challenged by human-rights actlvltists, Even that objection was dismissed by U.S. hibited the Export-Import Bank, a. govern­ delegate Leddy. The documents quote him as leaders of the American black community ment-controlled and funded agency that pro­ and other opponents of South Africa's white saying that "South Africa's export shortfall vides financing for U.S. sales overseas, from was probably due to factors largely beyond supremacy policies. They charge that inter­ making direct loans to South African pur­ nstlona.l agencies like the IMF ha. ve become its control." Accordingly, he found the convenient, backdoor devices for quietly chasers of U.S. products. assistance request reasonable and worthy of channeling aid to countries like South However, the bank ls permitted to guaran­ support. Africa., whose domestic policies are bitterly tee financing of loans obtained from private In summing up, Gisselquist and Morrell opposed by many Americans. U.S. banks by South African importers of state: "Each of the IMF meetings covered By helping South Africa. bolster its slump­ U.S. goods. Another federal agency, the Com­ in the minutes was held be!lind closed doors. ing economy, these critics charge, the United modity Credit Corp., administered by the Thus while South Africa. was earning world States has thrown away one of its most Agriculture Department, ls allowed to lend condemnation for its racist policies, it was effective potential weapons for putting pres­ money to South Africa for purchase of U.S. receiving a. more tangible measure of support sure on the Vorster government. As long as farm products. from the IMF. It is di.:hcult to imagine any the United States helps keep money coming The State Department follows what it calls other international forum in which support through agencies like the IMF, they contend, "a neutral policy" of neither opposing nor would be forthcoming." Vorster will be justified in dismissing Wash­ encouraging U.S. business investment in ington's remonstrances as "totally irrele­ South Africa.. Instead, department officials SMALL TOWN SAFE DRINKING vant." say, they try to ensure that potential inves­ WATER ASSISTANCE ACT This dissenting viewpoint has been heard tors are aware of South Africa's internal po­ with growing frequency in the months since litical problems and to urge them to follow concern with human rights became a major "enlightened racial employment politics." HON. JOHN B. ANDERSON element of U.S. foreign policy. For instance, "Neutrality" ls also the word used by it was the basis of a recent, unsuccessful at­ administration officials when discussing the OF ll.LINOIS tempt in Congress to restrict U.S. contribu­ U.S. role in the IMF. U.S. representatives IN THE HOUSE OF REPRESENTATIVES tions to some international lending agencies there, they say, are instructed to approach Thursday, February 2, 1978 by specifying they could not be used to assist decisions on strictly economic grounds, seven countries charged with human rights ta.king into account IMF rules a.bout whether Mr. ANDERSON of Illinois. Mr. violations. the country in question has a. balance-of- Speaker, I am today introducing the 2172 EXTENSIONS OF REMARKS February 2, 1978 Small Town Safe Drinking Water As- the special problems which will confront think we should do it now, even before sistance Act of 1978. The purpose of this small communities in complying with the the EPA study is completed. bill is to provide Federal grant assistance safe drinking water regulations. In my to communities which cannot otherwise · own 16th Congressional District of nii­ find necessary financial assistance to nois, for example, the town of Rochelle, comply with national primary drinking which has fewer than 5,000 families, is FARMERS TELL GOVERNOR "WE'RE water regulations. faced with a $1.5 million price tag on TIRED OF BEING FIRE PLUGS FOR Under the terms of my bill, Federal converting its drinking water system to THE STATE DEPARTMENT DOG" grants of up to 75 percent of the total comply with the iron content standards costs of constructing or modifying a promulgated by the State EPA. It is ob­ HON. STEVEN D. SYMMS small public water system in order to vious that this cost burden on such a bring it into compliance with Federal small community is extremely difficult if OF IDAHO safe drinking water standards would be not impossible to bear. no matter how IN THE HOUSE OF REPRESENTATIVES made available through the Environ- you stretch it out. While the crunch for Thursday, February 2, 1978 mental Protection Agency. To qualify most other small communities in the Mr. SYMMS. Mr. Speaker, I would like for such a grant, a small community, United States has yet to be felt since the to voice my great disappointment in the commonly defined as one having a current focus is on communities with testimony delivered by Secretary of Agri­ population of 10,000 or less people, populations of 75,000 or more, I predict culture Robert Bergland this week in the would have to show that it could not we will eventually hear the anguished House Agriculture Committee hearings. "reasonably obtain financial assistance cries of thousands of villages and ham­ Secretary Bergland's statement to the necessary to comply with such regula- lets when presented with their new committee can be summed up to say that tions from any other source." EPA in water bill, compliments of the U.S. he is unwilling to stand up and fight for turn would have to determine that the Government. America's farmers because he does not proposed system "is not likely to be made I do not say any of this in derogation want to start a fight he does not think he obsolete by subsequent changes in pri- of the Safe Drinking Water Act. I hap­ can win. The Secretary of Defense stands mary regulations." The project would pen to support national safe drinking up for defense programs, and the Secre­ have to be approved by the State agency water standards, because I think they tary of Labor supports labor interests. So with jurisdiction over safe drinking wa- will make a substantial contribution to why do we have a Secretary of Agricul­ ter since in most States the State agen- the improved public health of our citi­ ture who is more interested in not offend­ cies have primary enforcement responsi- zens. But I fear this is another case in ing the State Department than in stand­ bilities. And, finally, the grant could only which we did not give adequate prior ing up for fair market price for farmers. be used for construction or modification consideration to the costs as well as the Projections for 1978 show that farm in­ of a facility, and not for planning or benefits of such regulations and make come is expected to be comparable to operating expenses. adequate provision for meeting those what farmers earned 38 years ago, in The bill authorizes a total of $100 mil- costs, particularly in the smaller com­ 1940, and we have a Secretary of Agri­ lion in grant assistance over 3 years; as munities. This is apparent when you con­ culture who concedes the battle for fair follows: $20 million in fiscal year l979; sider that we passed the Safe Drinking prices before it has even begun. The only $30 million in fiscal year 1980; and $50 Water Act in 1974, and then, in 1977, hope America's farmers have is to iden­ million in fiscal year 1981. when it was up for renewal, we commis- tify the cheap food boys in Congress and sioned a study of whether there might Mr. Speaker, the Congress enacted the be alternative means of complying with then throw the rascals out in the next Safe Drinking Water Act back in 1974 as the standards and whether the existing election. a joint, Federal-State regulatory system means of financing compliance were suf­ To illustrate the seriousness of the under which the Federal Environmental ficient. In the meantime, while this study situation, I am commending to my col­ Protection Agency was charged with set- is going on, communities will be expected leagues a letter written by two Idaho ting national safe drinking water stand- to go forward with their compliance ef­ farmers, Chris Yamamoto and Lon ards, and the States were given primary forts, regardless of what the results of Klahr, to Idaho Governor John Evans, enforcement responsibility. While the act that study might show. Now obviously, if one of 38 Democratic Governors in the included grants to the States to assist some imminent danger to the public United States. The farmers ask Evans to them in carrying out their public water health is found, immediate corrective ac­ come to Washington to stand up for the supervision programs, it did not contain tion must be taken. But if the health interests of Idaho's farmers. In their any funds for assisting local communities hazards in the drinking water are less words "farmers are tired of being used as in complying with the new standards. It than substantial, communities should a fire plug for the U.S. State Department was apparently felt that the users should have the benefits of this study of com­ Dog." absorb any additional costs that might be pliance and financing alternatives before JANUARY 20, 1978. involved in coming into compliance, and they are forced to proceed with changing Governor John Evans must take a stand that these costs would not be substantial. their systems. for the government or !or the farmers, be­ cause the two are clearly in contUct. The Last year we renewed the Safe Drink- The Small Town Safe Drinking Water people of this great state deserves to know ing Water Act and extended the grant Assistance Act which I am introducing the truth. Which is more important the assistance program for State public water today recognizes that the Federal Gov­ Democratic Party, rubber-stamping one an­ supervision programs. The 1977 amend- ernment cannot and should not be ex­ other for party unity or the economy of the ments also called on the EPA Adminis- pected to pay all the costs of all the state o! Idaho. This cannot be done through trator to submit a report to Congress water systems which will have to make local channels, but it must be done on the within 18 months identifying and analyz- changes in order to comply with the new federal level. ing the costs to States and local juris- regulations. The water users in most com­ "We want Gov. Evans to go to Washington, D.C. and demand to talk to President Carter, dictions of complying with the new munities will have to bear this burden, and then demand that something be done drinking water regulations, and alterna- for the most part and, for the most part, immediately to protect the !armers in Idaho tive means of compliance and financing the average increase in costs is estimated and !armers in the rest of the nation." the costs of compliance, "including user to be between $6 and $10 a year per fam­ "It wm take some courage for Gov. Evans charges, State or local taxes or subsidies, ily. But there will be small towns which to do this, but those are his people in Wash­ Federal grants, loans, et cetera." rder to assist the Congress in determin - shall contain, in addition to the statement TITLE IV-AUTHORIZATION TIME LIMIT, ing whether programs should be reauthor­ required by this section, an assessment of the CERTAIN OBLIGATIONS NOT IM­ ized, modified, or discontinued, the agency degree to which such program or tax ex­ PAIRED report submitted in the year preceding the penditure has met previously stated objec­ expirati'on of a multi-year program authori­ tives. AUTHORIZATION TIME LIMIT zation shall summarize significant findings CATALOG OF INTERRELATED FEDERAL ACTIVITIES SEC. 401. It shall not be in order in either in each annual report submitted since the SEC. 202. In order to assist the Congress in the House of Representatives or the Senate authorization was enacted. preparing statements required by Sectlori 201 to con sider any bill or resolution which, di­ TITLE II-REQUIREMENTS FOR REPORTS of this Act, within six months after the date rectly or indirectly, authorizes the enact­ ACCOMPANYING AUTHORIZATION BILLS of enactment of this Act, the Comptl'oller ment of new budget authority, or provides new or increased tax expenditures, as defined STATEMENT TO BE INCLUDED IN AUTHORIZATION General of the United States, in consultation with the Director of the Office of Manage­ in section 3 (a) of the Congressional Budget BILLS Act of 1974, or which provides new spend­ SEC. 201. (a) It shall not be in order in ment and Budget, shall publish a descrip­ tive catalog of interrelated Federal activities, ing authority, as defined in section 401 (c) either the House of Representatives or the of the Congressional Budget Act of 1974, Senate to consider any bill or resolution including tax expenditures, organized ac­ cording to such classification scheme or for a time period exceeding five years. which, directly or indirectly, authorizes the CERTAIN OBLIGATIONS NOT IMPAIRED enactment of new budget authority or pro­ schemes as deemed appropriate to the re­ vides new or increased tax expenditures, as quirements of Section 201 of this act. Such SEc. 402. Nothing in section 401 of this defined in section 3 (a) of the Congressional catalog shall include-- Act shall be construed to impair or prevent- Budget Act of 1974, or which provides new ( 1) comparisons of program costs (includ­ ( 1) the payment of interest or the repay­ spending authority, as defined in section 401 ing, to the extent practicable, the costs pe_r ment of principal due lenders on debt instru­ (c) of the Congressional Budget Act of 1974, unit) and accomplishments among programs ments of t he United States Government or unless the report accompanying such bill or having similar or related objectives using, its agencies irrespective of the date the obli­ resolution contains a statement which- insofar as possible, information developed gations involved were incurred or the date ( 1) sets forth the specific objectives and by agencies in reports submitted pursuant to such payment or repayment may be due; or planned annual accomplishments of the pro­ Section 102 of this Act; (2) the payment to individuals of benefits gram to be authorized or established, its ex­ (2) description of program interrelation­ to which they are entitled by virtue of pay­ pected social and economic impact on indi­ ships, including identification of duplicative ment.;; made by them and deposited into viduals or groups intended to be served, the or overlapping programs and activities, and Federal tr11st funds. relationship of the expected costs of the pro­ identification of provisions of law which au­ TITLE V-MISCELLANEOUS PROVISIONS; gram to such planned annual accompllsh­ t horize activities for which funds were not EFFECTIVE DATE ments and to other governmental and non­ provided in the most recently concluded governmental programs and activities having fiscal year and which may be obsolete; and EXERCISE OF RULEMAKING POWERS similar or related objectives, and the neces­ (3) descriptions of State and local govern­ SEC. 501. The provisions of this Act (except sity for, appropriate extent of, and antici­ ment programs and private activities having sections 102, 301, and 502) are enacted by pated duration of Federal support of the similar or related objectives, including in­ the Congress- program; formation on program costs and, to the ex­ ( 1) as an exercise of the rule making power (2) identifies potentially or actually con­ tent practicable, costs per unit. of the House of Representatives and the flicting, overlapping, or dupllcative programs Senate, respectively, and as such they shall and activities in other governmental and The Comptroller General shall periodically be considered as part of the rules of each non-governmental programs, and explains update the catalog, or sections thereof, with House, respectively, and such rules shall the relationship of such programs and activ­ due consideration for the legislative pro­ supersede other rules only to the extent that ities to the program to be authorized. grams of the committees; emphasize in the they are inconsistent therewith; and initial version of the catalog those activity (3) identifies previous efforts to accom­ (2) with full recognition of the constitu­ pllsh the objectives of the program, and areas exoected to receive earllest considera­ tional right of either House to change such compares the costs and accompllshments of tion by the Congress; and provide such assist­ rules (so far as relating to such House) at such efforts to the expected costs and ac­ ance to the committees of the Congress as any time, in the same manner, and to the compllshments of the activities to be author­ may be necessary for fulfilllng the require­ same extent as in the case of any other rule ized; and ments of sections 101 and 201 of this Act. of such House. (4) where provisions of Federal law conflict TITLE III-PRESIDENTIAL BUDGET with the objectives of the program to be EFFECTIVE DATE authorized or are obsolete in relation to the RECOMMEND ATIO NS SEc. 502. Except as provided in section 202 objectives of such program, sets forth rec­ SEc. 301. The annual budget submitted by of this Act, the provisions of this Act shall ommendations for ellminating such conflict­ the President in accord with section 201 of take effect on the first day of the first session ing or obsolete provisions. the Budget and Accounting Act, 1921, shall of the Ninety-Sixth Congress.

SENATE-Monday, February 6, 1978 (Legislative day of Monday, January 30, 1978) The Senate met at 10:45 a.m., on discern the things of the spirit whether by appoint the Honorable QUENTIN N. BUR­ the expiration of the recess, and was or not they are of Thee. And when we DICK, a Senator from the State of North called to order by Hon. QUENTIN N. BUR­ have heard Thy voice and read Thy signs Dakota, to perform the duties of the Chair. JAMES 0. EASTLAND, DICK, a Senator from the State of North on the horizon of history may we obey Dakota. Thee and with the prophet say "Here President pro tempore. am I; send me." Mr. BURDICK thereupon assumed the PRAYER We pray in Thy Holy Name. Amen. chair as Acting President pro tempore. The Chaplain, the Reverend Edward L. R. Elson, D.D., offered the following prayer: APPOINTMENT OF ACTING PRESI­ DENT PRO TEMPORE RECOGNITION OF LEADERSHIP I heard the voice of the Lord saying, Whom shall I send, and who will go for The PRESIDING OFFICER. The clerk The ACTING PRESIDENT pro tem­ us? Then said I, Here a·m I; send me. will please read a communication to the pore. The Senator from West Virginia. -Isaiah 6:8 Senate from the President pro tempore THE JOURNAL 0 Thou Creator Spirit, Light of the (Mr. EASTLAND). world, and Revealer of truth, we thank The legislative clerk read the follow­ Mr. ROBERT C. BYRD. Mr. President, Thee for moments of quiet reverence ing letter: I ask unanimous consent that the Jour­ when all other voices are stilled and we U.S. SENATE, nal of the proceedings of Thursday, PRESl"ENT PRO TEMPORE, February 2, Groundhog Day, 1978, be ap­ are ready to receive Thy message. ' Give Washington, D.C., February 6, 1978. us ears to hear Thy voice above the din To the Senate: proved. of many voices and grant us eyes to see Under the provisions of rule I, section 3, The ACTING PRESIDENT pro tem­ the guideposts of history. Help us to of the Standing Rules of the Senate, I here- pore. Without objection, it is so ordered. CXXIV--138-Pa.rt 2