1216 EXTENSIONS OF REMARKS January 25,1979 statements for the RECORD and to intro- under the order, until 12 o'clock noon on Massachusetts, vice a new position created bills and resolutions, petitions, and Monday. by Publìc Law 95-486, approved October 20, duce 1978. memorials. The motion was agreed to; and at 3: 19 David Sutherland Nelson, of Massac The PRESIDING OFFICER. Without p.m., the Senate recessed until Monday, hu- objection, it is so ordered. setts, to be U.S. district judge for the dis- January 29, 1979, at 12 o'clock meridian. trict of Massachusetts, vice a new position - created by Public Law 95-486, approved Oc- tober 20, 1978. SPECIAL ORDER FOR MONDAY Rya W. Zobel, of Massachusetts, to be Mr. ROBERT C. BYRD. Mr. President, NOMINATIONS U.S. district judge for the district of Massa- I ask unanimous consent that Mr. PRox- chusetts, vice a new position created by MIRE be recognized for not to exceed 15 Executive nominations received by the Public Law 95-486, approved October 20, minutes, after the prayer, on the next Senate January 25, 1979: 1978. day that the Senate is in session but that DEPARTMENT OF STATE COMMODITY CREDIT CORPORATION I be recognized before Mr. PROXMIRE, Jonathan Dean, of , a Foreign James H. Williams, of Florida, to be a simply to protect my rights under reso- Service officer of class 1, for the rank of Am- member of the board of directors of the Commo lution No. 9 and the motion pending, and bassador during the tenure of his service as dity Credit Corporation, vice John C. White, resig it will not be my purpose to keep the floor Representative of the of Amer- ned. except to make a unanimous-consent re- ica for Mutual and Balanced Force Reduc- IN THE AIR FORCE quest that will do that and such unani- tions Negotiations. The following-named officer under the provisions of title 10, United mous-consent request that appears to be DEPARTMENT OF DEFENSE States Code, section 8066, to be assigned to a position of the Michael Blumenfeld, of the advisable at that time to establish District of Co- importance and responsibility designated by lumbia, format for morning business, et cetera, to be an Assistant Secretary of the the President under subsection ( a) of sec- for that day. Army, vice Victor V. Veysey, resigned. tion 8066, in grade as follows: The PRESIDING OFFICER. Without THE JUDICIARY To be Zieutenant general objection, it is so ordered. Robert E. Keeton, of Massachusetts, to be Maj. Gen. Evan William Rosencrans, xxx... - Ú.S. district judge for the district of Massa- xxx-xx-x... FR, U.S. Air Force. chusetts, vice a new position created by UNTIL MONDAY, JANU- Lt. Gen. Andrew B. Anderson, Jr., U.S. Air RECESS Public Law 95-486, approved October 20, ARY 29, 1979 Force (age 52).for appointment to the grade 1978. of lieutenant general on the retired list Mr. ROBERT C. BYRD. Mr. President, John Joseph McNaught, of Massachusetts, pursuant to the provisions of title 10, United I move that the Senate stand in recess, to be U.S. district judge for the district of States Code, section 8962.

EXTENSIONS OF REMARKS

TRIBUTE TO JOE HATCHER [The Nashvtlle Tennessean, Dec. 17, 19781 merely seeking the votes in primaries to en- IT's TIME To CUT POLI'TICAL SPENDING title them to run in general elections. (By Joe Hatcher) In the Republican primaries last summer, HON. ALBERT GORE, JR. Lama Alexander spent some $3.47 per vote "The time has come, the walrus said, to for the 230,922 votes he got-more expensive OF TENNESSEE talk of many things." And our Alice in Won- than the 661,959 votes he got in November. IN THE HOUSE OF REPRESENTATIVES derland subject is the recent race for gov- Butcher polled 320,329 in the Democratic Thltrsdatt, January 25,1979 ernor of Tennessee. primary at a cost of some $7.50 per vote. Did you know that if Jake Butcher had State Senator Anna Belle CIement has I Mr. GORE. Mr. Speaker, Joe Hatcher, been elected governor he would have had to recently filed proposed legislation that would the dean of Tennessee's political report- serve 92 years at the $50,000 a year salary Eet spending limits on all races in public ers, died last week at the age of 80. Joe just to make back what he spent to be oíñces in the State. Perhaps the limits pro- worked for the Nashville Tennessean for elected? posed are too restrictive after the wild spend- more than half a century, and his politi- Did you know that Governor-elect Lamar ing on the elections just past, but the whole cal reporting and columns will stand as a Alexander would have to spend 36 years in problem needs study and strong action. The the office at $50,000 a year just to make back spendíng can be limited without bankrupt- lasting memorial to the skill and dedi- what he spent to be elected? he brought to his profession. ing any TV station, radio station, or news- cation That is not to say, of course, that these paper in the state, and still give them a I had the privilege of knowing Joe men were spending their own money-the fair share of the campaign dollar. Hatcher as a friend and a colleague dur- greater part of it was contributed by various Recent years have brought about the pas- ing the years I spent at the Tennessean individuals for reasons of their own. sage of much legislation toward exposing the as a reporter and editorial writer. I If this state of affairs doesn't serve as a sources of campaign funds and reports on valued his friendship, and I learned from warning to us to take restrictive measures, where it goes, all to the good. Now comes his work. Even though Joe had retired we may as well put up a sign over the Gov- the time that limits should be put on ex- 1970, he con- ernor's office at the State Capitol and offer Lenditures, lest the cost of winning public from daily reporting in office become.: ridiculous. tinued to write a weekly column recalling it to the highest bidder. The auction would rich save a lot of energy and perhaps attract more For example, just think how ridiculous it for younger persons like myself the outside money into the state for sounds that an official should serve 92 years y. spreading heritage of Tennessee's Political histor around among the voters on Election Day. at $50,000 yearly salary to earn back what a columnist, Joe As a reporter and Lamar Alexander and Jake Butcher at- he spent to win a four-year term in the Hatcher always stood for honest, pro- tracted a total of some 1,185,454 votes last ofñc-and then did not win. gressive government. He was always for November 7 at a cost overall of $6,400,000 It was probably Butcher's reluctance to reform: even in his last political column, between the two in primaries and general make full disclosure that in the final anal- which I will reprint, he was fighting for elections. That's an expenditure of some $5.40 ysis cost him dearly at the polls. public campaign ñnancing în order to re- a vote for the two major candidates, with EDITOR'S NoTE : This column was written interests on some $2 million additional "chicken feed" before Joe Hatcher became seriously ill on duce the infiuence of special spent by other can politics. didates. Friday. Lamar got 661959 votes to win the election, was better because TENNESSEAN'S JOE HATCHER DIES IN Tennessee politics and if my birthday present pocket calculator of Joe Hatcher. All Tennesseans share in is correct, they cost him $2.72 for each and HosprrAL the loss which Joe's friends, colleagues, every vote. And keep ìn mind that Alexander (By Charles L. Fontenay) and family feel with his death. won over Butcher, who spent an incredible $8.78 for Joe Hatcher, political columnist for the Charles L. Fontenay, Joe's colleague each of the 523,495 votes he polled. Tennessean for half a century and one of the for many years, has written a full ac- The costs of running in party primaries state's most colorful old-time newspaper- count of his career, which I will reprint compare closely with the general election men, died last night in Baptist Hospital, at this point: campaign, except that the candidates are where he had been conñned since Dec. 15.

O This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. January 25, 1979 EXTENSIONS OF REMARKS 1217 Hatcher, of 1139 Tyne Blvd., was 80 years tuned that Hatcher's column was generally disagree today, but we may get together to­ old Christmas Day, 10 days after he was ad­ looked on as the "political voice" of the morrow and need each other." mitted to the hospital sufl'ering subdural paper for many years. In 1928, T. H. Alexander, a nationally­ hemotoma, a form of brain hemorrhage. He And both the Tennessean and Hatcher known columnist, began the newspaper's underwent surgery for removal of a blood were strongly reformist over most of those Politics column. Hatcher substituted for clot on his brain. years, especially the early ones when the Alexander as writer of the column from time Funeral arrangements were incomplete Tennessean was fighting against the long­ to time, then took over the column some la.st night. The body is at Roesch-Patton entrenched political domination of the state time during the 1930's. Funeral Home, 1715 Broadway. by E. H . Crump, fiery Shelby County politi­ He covered virtually all beats of the Ten­ "Joe was more than the dean of Tennes­ cal boss. nessean during his early years with the see political reporters," said Amon Evans, Hatcher did not lose that orientation with paper. He was police and criminal courts re­ president of the Tennessean. "He was the advancing yea.rs. One of his last columns porter, covered the federal courts and all best. decried the increasing cost of conducting sessions of the legislature beginning with "His broad knowledge, extensive experi­ political campaigns, brought out so sharply 1921, and covered the state Supreme Court ence, keen insight and wide range of contacts in the 1978 statewide races. for a number of years. contributed immeasurably to the credib111ty, Hatcher had served in most editorial posi­ Hatcher served a total of five years as city prestige and standing of the Tennessean dur­ tions in the Tennessean city room. He began editor, then five years as managing editor ing the more than 40 years of owner.ship by newspaper work as Vanderbilt University and for a time was acting editor in the ab­ the Evans family. My father, my brother correspondent for the old Evening Tennes­ sence of John H. Nye, the paper's editor dur­ and I knew Joe as a great journalist and a sean in 1918 and 19-20, and joined the stat! ing the period. He continued to write his true friend. as sports editor Oct. 1, 1921. Politics column during those desk jobs, "He will be missed, but his work will never He began covering politics for the Ten­ though, and returned to it exclusively in the be forgotten when the subjects of politics nessean during Gov. Austin Peay•s campaign lrute 1940's. and the press are discussed. My mother and for re-election in 1926, and for a good many Hatcher volunteered for mmta.ry service I are saddened by his death." years was the newspaper's Capitol beat re­ in 1942, soon after the United States was "On the day I went to work for the Ten­ porter. At difl'erent times, he served as tele­ drawn into World War II, and wrote some nessean, Joe Hatcher, who was managing graph editor, city editor and managing columns as a private from Fort Oglethorpe, editor, gave me some advice I have remem­ editor. Ga. Later he went to Virginia. for officer bered during the ensuing 30 years," said Joseph T. Hatcher was born Dec. 25, 1898, training, but incurred a. hernia. during the John Seignethaler, the newspaper's pub­ at Anding, Miss., where his father was tem­ training period, and was released from service lisher. "He said, 'Always be straight with porarily vacation relief agent for the after surgery. the paper and with yourself.' Central Railroad. Orphaned as a child, he He returned to the Tennessean in 1943 and "He always followed his own advice. Joe was reared by foster parents at Greenfield, resumed his job as city editor. possessed a rare mixture of character traits­ Tenn., where he attended public school and Hatcher gained a. reputation throughout wisdom, wit, good judgment. courage, candor preparatory school. the South for his familiarity with the shift­ and plain common sense-that made him In a Christmas column in 1976, Hatcher ing political scene, his friendship with men an outstanding newspaperman and an out­ recalled the Christmases of his childhood in high office and his understanding of be­ standing man. years in West Tennessee, when there were hind-the-scenes forces that permitted him "Dozens of younger journalists, like me, no electric lights on the Christmas tree, and to interpret trends and events consistently who were befriended and helped by him wlll no radio or television playing Christmas and to forecast election results accurately. never forget him." carols. He did not accomplish this by button­ Lloyd Armour, executive editor of the "It's possible there was a telephone some­ holing legislators and other political figures Tennessean, said: "Joe was a colleague, and where in my neighborhood in those days," as his contemporaries in the newspaper field a gentle man with warmth, compassion, in­ he wrote, "but there were no electric lights were forced to do. So well known was Hatcher tegrity, and a wisdom tha.t came not of age, in that rural area. There were only wood that he would post himself at the stairway but of keen observance of the world around burning stoves or fireplaces. There were man­ in the Hermitage or Andrew Jackson Hotel, him. tles over the fireplaces, and there we hung and politicians, both friendly and hostile to "He was a democrat with both a capital and our long black stockings." the Tennessean, would pause to give him the a small D. He believed in party, but he also He reminisced about the Christmas din­ latest "dope" in low-toned conversation. believed in people-all people." ners, with either a baked hen or turkey "and Many of his major "beats" were acquired Hatcher had not been in the best of healt h always a baked country ham," and the side simply through knowing where to make a. in recent years and had not been seen around dishes and desserts. single telephone call. much since his retirement April 1, 1970. He Hatcher entered Vanderbilt University in Although the newspaper was strongly op­ continued, however, :to write a weekly col­ October 1917 and a few months later became posed to Browning during the last months umn for the newspaper, spending much of college correspondent for the Tennessean. of his first administration, from 1936 to 1938, the rest of his time at home, where he pur­ But he entered the Student Army Training Hatcher remained a close personal friend sued his years-long hobby of rose gardening. Corps 1n October 1918, and was transferred and adviser to the governor. Later when But during most of the years of the mid­ to the artillery officers' school at Camp the paper made its peace with Browning century,, his short, somewhat stocky form Taylor, Ky. and backed him in an efl'ort to oust Crump was a fam111ar sight in the legislative halls, in But Hatcher was under-age for a. commis­ from power, Hatcher made a. trip by plane governmeillt offices, and at polltical gather­ sion, and when the Armistice was signed the to Germany in 1946 to interview Browning, ings. Hatcher was a quiet man, rarely rais­ following month, he returned to Vanderbilt. then a lieutenant colonel in the Army. ing his voice, with a slow, alert smile. There he became the first student ever to Browning announced his candidacy for He had two trademarks through the years edit both the Hustler and the Commodore, governor through Hatcher that year. He was of his activity on the political scene: his hat the college's weekly and annual respectively. defeated, but two years later, he and Estes and his cigar. Indoors and oUJt, he con­ Hatcher was also a member of the Honor Kefauver won races for the governorship stantly wore a gray fedora hat with brim Committee at the school, and lettered in and the U.S. Senate, sweeping Crump out of turned down front and back, covering the baseball. A good baseball player, he played power and achieving a long-sought goal of fa.ct that he was totally bald from a youth­ some semi-pro ball on a part-time basis Hatcher and the Tennessean. ful illness. Occasionally indoors, he wore a during his summers a few years later. Hatcher's running fight against Crump skullcap instead. In the summers of 1920 and 1921, he and the state administrations crump spon­ And he chewed incessantly on a cigar, right worked as a baseball and golf writer in the sored infuriated the Memphis boss, who at­ down to the la.st inch of the stub, even after sports department of the Atlanta Constitu­ tacked Hatcher and his employer, Tennes­ he had to give up smoking them as much as tion, and after his graduation from Vander­ sean publisher SUliman Evans, viciously in earlier years. bilt in 1921, he joined the Evening Tennes­ through public statements and advertise­ Hatcher was generally conceded to know sean as sports editor. Later he became a ments. more about the ins and outs of politics, all sports writer and then acting sports editor In 1947, Newsweek magazine noted that factions of it, than a,lmost any other person in 1925 of the morning Tennessean. Hatcher, editorial writer Jennings Perry and in Tennessee. Except for a break during Although he did not become more or less cartoonist Tom Little were Evans• chief edi­ World War II, his column, Politics, appeared a. full-time political writer until Austin torial weapons against Crump and his politi­ regularly or irregularly withoUJt a break since Peay's 1926 campaign, Hatcher covered Sen. cal machine. the late 1920's, even when Hatcher was hold­ Kenneth D. McKellar's campaign in 1922, "They goad Crump into such fl.ts of rage, ing management posts on the newspaper and, he said later, acquired McKellar's po­ he buys space in rival newspapers to blast staff. litical philosophy at that time, "which I back, and makes his state and national legis­ Although occasionally his persona..l feel­ think I have followed since." lative stooges use personal privilege to call ings a.nd convictions diverged from the Ten­ McKellar became crusty and irritable in Evans 'bubonic rat' and 'frog' at taxpayers' nessean's editorial viewpoint-for exa.mple, later years, but at that time he was a young expense," Newsweek said. he remained close to Gov. Gordon Browning senator seeking re-election to his second "Bubonic rat," however was a term Crump when the newspaper broke with him during term, and he told Hatcher: reserved for Hatcher. In 1945, pro-Crump his first term-the two were so closely a.t- "Never let politics be personal. We may legislators read to the state House and Sen- OXX.V--77-Part 1 1218 EXTENSIONS OF REMARKS January 25, 1979 ate Crump's letter to the Tennessean, which pendence of Ukraine, a time to pay rent active duty pay-50 percent if they began: tribute to the struggle of a brave nation. served 20 years, and 75 percent if they "If the city of Nashvllle should ever follow While it is a day of honor for these served for 30 years. This was a prin­ the lead of the progressive city of Memphis cipal attraction of military service and and inaugurate a campaign for the exter­ great people, the Ukraine will spend mination of rodents, Silliman Evans, Jen­ this Independence Day under Soviet indeed was an institution of service-so nings Perry and Joe Hatcher will un­ domination. It is a tragic reality that much so that no one dreamed the retire­ doubtedly take to the tall timbers. . .. Rat millions of Ukrainian people are sub­ ment system would ever change dras­ Joe Hatcher ... hasn't character-he has a jected to live as slaves in their own coun­ tically. One can only imagine the shock low, filthy diseased mind-lies by nature and try, captives of the Soviet Union. How­ felt by those who had served in the tells the truth by accident." ever the efforts of the Soviets to stamp military and had counted on the retire­ Hatcher became accustomed to such ment remaining the same when they statements, sometimes read in the legisla­ their initials into the hearts, souls, and tive chambers in his presence. In 1949, Sen. minds of the proud Ukrainians has been were ready to retire as it was when they Frazier Riggins of Stewart County, offended fruitless. It is very important for Ameri­ joined the service. As of 1958 it was not; at one of Hatcher's columns criticizing his cans to continue kindling the spirits o! Congress had changed the game plan. vote against an election reform bill, threat­ Ukrainians in hopes that they will some­ The retirement system currently in ened to have Hatcher arrested and hauled day attain personal liberty and political operation is not a just one. This sys­ before the Senate, and remarked, "Many a freedom. This is our role as the cham­ tem is currently providing one man only farmer in Stewart County keeps his gun loaded for better men than Joe Hatcher." pion of all free people of the world, and half as much retirement pay as an­ Hatcher replied quietly, "There's been too of all those who desire to be free. other-even though those men served the much smoke from Stewa:rit, not to be any fire Congress, as a group must assure our same length of time and retired in the there." Government's representatives that we same rank. Yet both of these men must At the time, Hatcher was a member of the will be ,following their efforts to promote pay the same prices for food, rent, cloth­ Tennessee Press Associat ion's committee for basic human rights for the people of the ing and utilities which as we all know election reform, which sponsored bills to Ukraine and will hold them accountable have increased drastically since 1958. clean up the election process in the state. He served on the same committee for the for their actions. Only through the con­ The retirees who would benefit from TPA in 1963, and wrote numerous columns tinued efforts of the Americans will the my bill are not seeking a bonanza, but on election reforms. It was only one of the hopes of freedom-loving Ukranians re­ only what they had expected to receive campaigns he waged through his writing for main alive. when they first entered into the service the newspaper. Others included efforts to As the people of Ukraine look to Amer­ of our country, and what they truthfully eliminate the state's poll tax, and other con­ ica they must be proud of their heritage. need now to provide the minimal com­ ditions that he considered contraryi to demo­ It is necessary that we as Americans forts of life. cratic government in the state. Whtie he was serving as an executive of the must continue to give these nationalists I was very pleased to note that the Tennessean, Hatcher was the newspaper's some encouragement by applying pres­ President's Commission on Military representative with t he TPA. sure and attempting to make the Soviet Compensation, which was submitted to Hatcher had covered most of the nrutional Union comply with the Helsinki agree­ President Carter last April, includes a Democratic and Republican conventions dur­ ment. recommendation that the Congress re­ ing the period of his active political writing, On this day let us not forget that the solve the problem of pay equalization for and reported the impeachment proceedings struggle of an oppressed nation has not those older retirees and I would hope against Gov. Henry Horton for the Tennes­ sean, the Commercial Appeal in Memphis and ended, and we must continue to offer that we could pass a meaningful law in the Knoxville Journal. hope and guidance to the people of this Congress that would provide these In a. final column before leaving for mili­ Ukraine.• retirees with the income they need and tary service in 1942, Hatcher reviewed his 20 deserve in exchange for the dedication yea.rs as a political observer, and said Tennes­ and service that they provide our see and its Democratic Party stood "at its RECOMPUTATION OF MILITARY Nation.• lowest ebb in modern history, at least, if not RETIRED PAY at all times." This, he said, was because of the rise of the Crump ma.chine, but he pre­ dicted-accurately-that its power was on THE POSITIVE SIDE OF U.S. INVEST­ "the down road toward eventual disaster." HON. HENRY B. GONZALEZ MENTS IN SOUTH AFRICA In 1969, nearly a year before his retirement, OF TEXAS Hatcher was honored at a. luncheon in Wash­ IN THE HOUSE OF REPRESENTATIVES ington by national leaders, Tennessee law­ HON. JOHN J. LaFALCE makers and fellow newsmen for his near-half Thursday, January 25, 1979 OF NEW YORK century of news and political writing. The e Mr. GONZALEZ. Mr. Speaker, for entire Tennessee delegation in Congress was many years now I have been proposing IN THE HOUSE OF REPRESENTATIVES present, along with Amon Ca.l"ter Evans, then Thursday, January 25, 1979 publisher, and John Seigentha..ler, editor, of recomputation legislation for retired the Tennessean, House Speaker John Mc­ members of the military. Recomputation • Mr. LAFALCE. Mr. Speaker, many Cormack of Massachusetts and House ma­ is a complex subject that has aroused commentators would have us believe that jority leader Carl Albert of Oklahoma. considerable debate since 1958 when the doing business with the Republic of "Joe Hatcher is the peer of any newspa.,per­ hundred year old tradition of tying re­ South Africa d,irectly supports the system man I've ever known," said Bascom Timmons, tirement annuities directly to active duty of apartheid and represents U.S. backing dean of Washington political columnists, who pay scales was abandoned in favor of a for that extremely repugnant form of had covered Woodrow Wilson's nomination in cost of living increase system. Originally blatant racism and exploitation. 1913. I proposed a bill calling for complete At Vanderbilt, Haitcher was a member or Chief Gatsba Buthelezi, the foremost ATO fraternity. He was a. member of Ameri­ recomputation for all retirees, but in black leader in South Africa, has taken can Legion Post 5 for many years. view of the economic realities of the strong issue with that viewpoint in an He was married to the former Miss Dorothy military budget I am proposing a com­ interview in the November 27, 1978 issue Tolman of Boston, who survives.e promise measure. of Forbes. The chief, who is a firm and The bill I am introducing today calls unrelenting opponent of apartheid, for a one time recomputation to basic UKRAINIAN INDEPENDENCE argues that U.S. companies can be a pos­ rates of pay in effect on October l, 1979 itive force for peaceful change in South for those 65 years of age or older, and dis­ Africa and provide tangible benefits to SPEECH OF ability retirees with a rating of 30 percent the black majority in South Africa. His HON. JAMES M. HANLEY or more. There is no doubt that any pay call for steady and peaceful pressure for equalization plan for retirees will be change is a welcome relief to the fre­ OF NEW YORK costly, but we must also consider equity IN THE HOUSE OF REPRESENTATIVES quently invoked bloodbath theory of po­ · and justice when reviewing my proposal. litical change in that country and should Wednesday, January 24, 1979 Mr. Speaker, we cannot ignore the be given serious consideration by every­ • Mr. HANLEY. Mr. Speaker, I rise to history behind the military retirement one interested in the future of South join my distinguished colleagues in ob­ system. From 1858-1958 military retirees Africa and U.S. companies' role there. serving the 61st anniversary of the inde- received a retirement pay based on cur- The article follows: January 25, 1979 EXTENSIONS OF REMARKS 1219

SOUTH AFRICA: U.S., DoN'T Go HOME "One black Journalist, whom I wm quote means exercising influence wherever they can ( By John Train) without comment, has also pointed out that to promote peaceful change. If we don't have the classical Marxists always emphasized peaceful change here we're all too likely Ito At more than 25 U.S. corporations this year that capitalist industrialization, as it de­ have violent change, which none of us resolutions have been proposed for inclusion velops, revolutionizes traditional relations wants, not blacks, not whites, not Amer­ in proxy statements, calllng on companies and thus revolutionizes people's minds; icans, not foreign lnvestors--only certain like Coca-Cola and GM to quit doing business Lenin, this black Journalist added, stressed groups that we both know." in the Republic of South Africa. Polaroid has constantly that capitalist industry elimi­ I nodded. Chief Buthelezl kept coming already acceded. Students demonstrating at nates the slave mentality among workers and back to the same theme: that those for­ dozens of universities wave placards demand­ lifts them to the point where they demand a eigners and local radicals who call for bloody ing that their trustees sell the stocks of com­ full share in society. revolution in South Africa. are less interested panies that do business in Sou th Africa. Some "As industry expands, propelled by domes­ in the welfare of the South African blacks schools have done so. Doing business with tic and foreign investment, a severe shortage than they are in proving a. political point. South Africa, the protesters insist, supports of qualified men ls increasingly appearing, "I often wonder what those bloodthirsty social injustice and the exploitation of and black people are of necessity being ad­ gentry are really up to. I suspect that they blacks. vanced to more responsible positions. The are trying to stir up the pot down here, ad­ The quit-South Africa argument sounds government has not only accepted this but vocating policies that are likely to lead to plausible, given the American belief in de­ made it a matter of policy. So I'd say that violence, not for reasons that have much to mocracy and equality. But is it? Absolutely further improvement in black labor con­ do with our struggle for decent conditions not, says the most popular leader of South ditions is irreversible unless something hap­ but instead are projections of political-and African blacks, Gatsha Buthelezi. This pens to cause the economy to slow down­ indeed emotional-needs of their own. Their champion of black rights is the elected chief such as a withdrawal of foreign investment. opinions seem to flow from their politics, minister of KwaZulu, the Zulu homeland, As the process continues, the role of blacks their needs, their conditions, not from our and founder and chairman of Inkatha, the in South African industrial management will conditions. I wish they would give vent to National Cultural Liberation Movement become critical, which will give us more and their talents on some other battlefield. They whose first bulletin was seized by the police more economic and political leverage. Our aren't benefiting my people. last year. A recent poll gave him a two-to­ demands are thus increasingly likely to be "The first need of the impoverished black one advantage over his nearest competitor met, as long as we maintain the pressure at man ls for money to feed his family and to as the recognized leader of black South other points. permit him a little freedom of action. What Africa generally. "Mind you, although pressure on the gov­ kind of struggle for independence can you His credentials as a nationalist leader are ernment in Pretoria must be kept up, I'm wage from a level of utter impoverishment? impeccable. Only last summer he was not in favor of just any kind of pressure. I am a student of history, and I know that brought to the U.S. by the National Urban Some kinds are extremely effective, and American firms should apply them. Pressures in the past hunger has caused many revolu­ League and he attacked his country's white tions. But it's also true that an army marches government in strong language. He spoke of in sport have had good results, and I ap­ plauded the arms embargo as a meaningful on its stomach. "unschooled Boers [who] joined hands with "All too often your hard-liners in ivory the scum of Eurooe to behave with crass bit of symbolism. But the pressure to dis­ invest, which brings misery to my people, towers abroad are playing into the hands of stupidity.... " He said: "You know that the right wing here. When they call for a apartheid is so ugly that it can only survive slows development and may lead to the loss of all we are achieving: That is worse than slowdown of investment, or actual disinvest­ if it is enforced with the barrel of a gun." simplistic thinking; it ls reckless and ment, they call for an aggravation of exactly He warned South African whites: "Whites dangerous." the conditions that we are struggling against. should realize that they will have no peace­ Buthelezi pointed across the river to the What we demand is a more equitable share ful future at all without sharing it with the barren hllls beyond, dotted by the huts of of the benefits that lnvestment--both foreign blacks." subsistence farmers. He continued: "Jo­ and domestic-ls bringing about: education, And yet here is this same antiapartheid hannesburg isn't Africa., any more than New Jobs, human dignity. Things are imprcvlng, nationalist leader almost begging U.S. firms York is America. It is extraordinarily arro­ but they will slow down drastically if foreign not to cease doing business in his country. gant of visitors to prescribe what's best for investment dries up and a climate of peaceful In a meeting in a village on the Tugela my people on the basis of a limited exposure. change is replaced by one of fear." River, in Zulu territory near the Mozam­ When I hear them calling, with more en­ South Africa is not Rhodesia, where 263,000 bique border, and in a subsequent telephone thusiasm than wisdom, for an end to Amer­ whites rule 6.6 million blacks; the South conversation, Buthelezi was interviewed by ican investment, I say the same thing to African whites are 4.3 million strong. They Forbes columnist John Train, whose report them that I say to some people in Pretoria are not recent colonists; many o! their an­ follows: who want to prescribe a.t a distance what's cestors arrived three centuries ago, at about A strongly built man, looking younger best for KwaZulu. 'To hell with you,' I say. the same time the ancestors of the present than his 50 years, the chief talks with rapid "You know," said Buthelezl, shaking his blacks moved into the then almost empty intensity. The black leader was blunt about head, "your superliberals don't seem to want territory. The whites are well armed and de­ it: American business, he said, was a welcome to learn what conditions here are really like. termined, their backs to t he wall. They are force for change. Said Buthelezi, "Some of Many influential persons from abroad come not going to be driven out or wiped out. Thus your superliberals in America have got the to South Africa. They arrive in Johannes­ the only alternative to perpetual bloodshed is whole issue exactly upside down. They seem burg, and stay in the Carlton Hotel and see peaceful compromise. For saying so, Buthe­ to think it is immoral for American compa­ lots of clever and important people. They lezl has annoyed the extremists both of the nies to invest here, but irresistably profitable. think they know what ls happening. But le!t and the right. His retort to both sets of The truth is the opposite. It is morally im­ they don't get a.round the country. They extremists: Your violent rhetoric makes com­ perative that American firms remain active don't come here to KwaZulu. They don't see promise difficult. here-and support us in our struggle-even me, and they don't see my people. Stlll, they "Already," said Chief Buthelezi, "the Afri­ though the business aspects may well present want to tell us what to do. kaners are feeling the wind of fear. Already, problems. We have been passing through dif­ "Often they don't seem aware, or even as one says here, they are drawing into the ficult times and will doubtless pass through want to hear, of the remarkable gains we laager [ an encampment protected by a circle more in the future. It may be that from a have made in the last few years." o! wagons J, giving reactionary forces an ex­ purely financial standpoint there will be dis­ Black mine workers have made tremen­ cuse for repression. It's fear that makes them appointments, remembering that labor dous earnings gains in recent years. Though draw into the laager, !ear that ls the chief costs-meaning black labor-are rising fast. their wages are low by U.S. or European impediment to peaceful change. Certain care­ But morally, yes! My people want you and standards, they are paid as much as ten fully calculated pressures and influences need you here, just as we need the whites times what black workers earn elsewhere in from abroad are fine; but generalized expres­ and the whites need us. southern Africa. While this may still sound sions of hatred and encouragement to vio­ "The uninformed liberals abroad who like exploitation, it ls several times what lence are disastrous. would like to see a violent confrontation in blacks make in black-ruled countries that "The different races here in South Africa my country are working for the very thing lack substantial U.S. investment. know they need each other. The superllberals that everybody here most wants to avoid, "And some of that ls thanks to the Amer­ abroad don't understand that at all. We know although it may happen. Black and white ican companies," the chief said. "They pay that there can be no South African economy alike, our need ls for peaceful change, and more, offer better conditions and local com­ within which we can all prosper without the foreign investment ls one of the best agents panies have to follow suit to be competitive managerial and technical skills that the of that change. in the labor market. whites possess, or the jobs, advanced tech­ "Here is why: Foreign investment creates "But it's very important that your Amer­ nology and other benefits brought in by for­ jobs. Jobs bring money to the blacks, who ican companies, when they come here, do eign investment. It ls a wild fantasy to sup­ are by far the majority of all industrial more than just invest. They must take an pose that if the whites were somehow driven labor-71.6%, to be precise. Money means active role, not just a passive one. They away, the economy could function at all. power. And working in industry also gives should have a· commitment to peaceful Blacks are not ready to assume their posi­ the black man the training and experience change in South Africa, which means more tions, and won't be for a long, long time. The that he will need to assume his rightful place than being model employers, more than giv­ last thing my people want is to bring in­ in our country-just as he did in yours. ing a good example, useful though that ls. It dustry to a standstlll. 1220 EXTENSIONS OF REMARKS January 25, 1979 "I do not, however, favor foreign invest­ jobs for our people and to make needed prod­ vasion and subjugation by the Russians. ment on a.ny terms. We want foreign in­ ucts available at attractive prices. The skin In 1922, the Ukrainian Soviet Socialist vestors who observe the Sullivan Code a.nd color of the participants is irrelevant if they other such codes of conduct a.nd who work do the job, a.nd besides, that a.pproa.ch is based Republic was established. for economic a.nd political change." of Pretoria's ideal of racial homogen.ei ty for The Soviet Union has severely limited Buthelezi was referring to the code of cor­ 1:Jhe homelands, which I oppose a.nywa.y. So to the cultural and political activity of the porate conduct promulgated by the Reverend me it's a. good thing if American firms come Ukrainians. The years of suffering these Leon Sullivan, which ha.s ,been genera.Uy to South Afrlca., a.nd best if they come to the people have endured under Soviet domi­ accepted by U.S. firms opera.ting in South undeveloped homelands, where they will get nation have been exacerbated by reli­ Africa., whether directly or through a.ffllia.tes. the warmest of welcomi:?s. gious and national persecution, Russifl­ Its six points a.re the following: "My friend Amba.ssa.dor Andrew Young ls cation and inhuman treatment. And yet, 1. Nonsegrega.tion of the races in a.11 ea.ting, hated a.nd vlllfied by many people in South comfort a.nd work fa.c111ties. Africa., but I want to sa.y that I think he is despite the attempts of the Russian Gov­ 2. Equal a.nd fair employment practices for one of the greatest friends of my country, a. ernment to suppress the aspirations for a.11 employees. great a.Uy of all the people of South Africa., independence and nationalism in the 3. Equal pa.y for a.11 employees doing equal not just the blacks. He supports American Ukrainian people, their struggle for free­ or compa.ra.ble work for the same period of investment here for the same reasons I do. dom has been continuous and vigorous time. He saw the same thing happen in your South with the flame of hope burning as 4. Initiation of a.nd development of train­ that I want to see happen here: violence brightly as ever. Suppression and domi­ ing programs that will prepare, in substa.ntia.l being defused by more a.nd more people be­ numbers, blacks a.nd other nonwhites for ing drawn into the upward spiral of eco­ nation have not quelled the desire for supervisory, administrative, clerical and nomic opportunity." (Andrew Young, queried independence in the hearts of these brave technical jobs. by Forbes on the subject, turned silent. Said people nor arrested their prodigious 5. Increasing the number of blacks a.nd his press secretary: "Ambassador Young efforts for freedom from foreign other nonwhites in ma.na.gement a.nd super­ would be reluctant to comment a.t a.11." Ha.s hegemony. visory positions. the usually voluble Young suddenly turned It is a great privilege for me to pay 6. Improving the quality of employees• prudent? Or is he simply reluctant to a.n­ tribute to the courage, spirit and force­ lives outside of the work environment in ta.gonize his friends on the liberal left?) fullness these people have demonstrated such areas a.s housing, tra.nsporta.tion, "I challenge anyone to prove that the black schooling, recreation a.nd health fa.c111ties. people ,themselves a.re a.gs.inst American in­ in their struggle. I urge my colleagues to "By a.nd large though," says Buthelezi, vestment,'' Buthelezi continued. "Some of not merely reflect upon the past and pres­ "American companies a.re leaders a.nd a.re so the Sowetoa.ns and some of the banned ent status of those under oppression; recognized in this compa.ign. Their presence leaders a.re, na.tura.lly. They're bitter, I under­ but to renew our conviction to secure for does a. lot of good, in more than just the stand that. But not the people who speak all mankind their basic inalienable economic sphere. They pa.y exceptionally high for a. constituency.... Do you understand?" rights. The subject of human rights has wages a.nd offer good conditions. As a. result, He looks at his interviewer intently. "Not become a volatile international issue. But the other companies have to raise wages a.nd the leaders who have to live with the conse­ all signatory nations should be urged to improve conditions to remain competitive in quences,'' he adds, "not those who speak for the labor market. Thus, the secondary results my people a.s a. whole l"e comply with the Helsinki Accords which of your investment a.re very beneficial. set forth basic ideals of human rights "I think of such companies as Ford, which and individual freedoms. Let us make has given a. good example in providing hous­ UKRAINIAN INDEPENDENCE this anniversary more than a time of ing a.nd in eliminating discrimination in ea.t­ commemoration; let us make it a time of ing fa.c111ties, a.nd of Amoco, which has pro­ commitment with the intent of making vided loans for housing. Polaroid set up a.n HON. WILLIAM J'. HUGHES waves in the sea of oppression which excellent education fund, but then unfor­ OF continues to engulf not only eastern Eu­ tunately left-under pressure-although the fund carries on. I was sorry Polaroid was IN THE HOUSE OF REPRESENTATIVES rope but also Southeast Asia and Africa. pressured into withdrawing." Wednesday, January 24, 1979 It is my hope that one day the spirit of I asked Chief Buthelezi if he 1:Jhought for­ independence and the reality of freedom eign firms should be encouraged to invest • Mr. HUGHES. Mr. Speaker, I rise to will be inextricably linked for the people in the so-called black homelands rather salute the people of the Ukraine and of the Ukraine, and that life, liberty, and than South Africa. proper. to join with them in the commemoration the pursuit of happiness will become the "I have a. strong opinion on that," the chief of the 6lst anniversary of their Procla­ birthright of all peoples.• replied. "I a.m opposed to the homelands mation of Independence. Each year on policy. The homelands a.re a. wa.y for Pre­ July 4, we celebrate the anniversary of toria. to shed its responsib111ties a.nd to dis­ enfranchise whole segments of the South our independence and the freedoms CHARLES W. HACKNEY RETIRES African population. I don't want it to suc­ which our Founding Fathers enumer­ ceed. These a.re places, not just political con­ ated. But for the people of the Ukraine cepts; they have people living in them-my there will be no celebrations, for these HON. JOHN· D. DINGELL people. And some of these a.rea.s a.re being people will be marking this occasion un­ OF bypassed by development. der the yoke of Soviet oppression. The IN THE HOUSE OF REPRESENTATIVES "It's essential, in the iruterests of peaceful spirit of independence and the insati­ Thursday, January 18, 1979 evolution here, that nobody be left behind able desire for freedom are very much in a.nd that every region should be included in the hearts of these people, but the prac­ • Mr. DINGELL. Mr. Speaker, one of the the development process a.s far a.s possible. tice of these freedoms, which we take for most loyal and conscientious employees People must feel that they have a. stake in of the House of Representatives, Charles the success of our country. granted each day, is far from their grasp. "As chief minister of KwaZulu I've been The Ukrainians are a Slavic national­ William Hackney, whom we all affec­ pushing for what I ca.11 'tri' companies, ity group that has its own customs and tionately call Charlie, deserves our ap­ which draw on local black businessmen, some language. Their universities are among plause and commendation as he chooses white businessmen for their expertise and the oldest and most famous in eastern to retire from service in the House. various forms of government support." Europe. Ukrainian farms produce one­ We can sincerely say thanks to Charlie I mentioned that one of the problems of fourth of the Soviet Union's meat and for his steadfast service, cooperation, and the "minority-owned" businesses encouraged dairy products, and one-fifth of its grain. personal assistance he has provided us by the American government ha.d been that as majority reading clerk for 16 years, the a.va.lla.b111ty of large a.mounts of easy The Ukraine has rich mineral deposits, money encouraged unsound projects. The sys­ and about one-fifth of the steel and which is but half of his over 32 years of tem in the U.S. often favored entrepreneurs nearly one-third of the coal produced in service as a House employee working on who were better a.t wire-pulling a.nd filling the Soviet Union comes from the the floor of this Chamber with our col­ out forms ,than at actually starting and run­ Ukraine. leagues. His dedication truly has been to ning small businesses, a.n extremely difficult On January 22, 1918, the Ukraine was the House. trick at best. declared an Independent Republic. But I have a personal affection for Charlie. Buthelezi was intrigued by this point. this independence was fleeting. During We both came up through the ranks in "We're very conscious of the problem," he replied. "Pretoria wants us to get the whites the next 3 years the Ukraine was invaded the House having begun our congres­ out or the 'tri' companies as soon a.s practi­ from all sides. The Ukrainian people sional experiences as pages and can easi­ cable, but in my opinion that's a. ba.d idea, fought gallantly against formidable mili­ ly claim we both know the system inside and I'm opposing it. The important thing ls tary forces in the defense of the country, and out. to have the projects succeed, to create useful but they ultimately succumbed to the in- Charlie's career expanded to include January 25, 1979 EXTENSIONS OF REMARKS 1221 service on the staff of the Democratic propriation, authorization, and Presi­ off the bonds of Soviet oppression which cloakroom and then as assistant man­ dent's budget request levels: runs counter to these rights. ager of the cloakroom before becoming [In millions] Mr. Speaker, here in the United States, our reading clerk. Whenever the Chair we also have a long and strong tradi­ announced, "The clerk will read," it was 1978 1979 1979 1980 1980 tion of support for human rights. Domi­ Charlie who always for the most part appro- author- supple- author­ budget nation by any foreign state would be recited page after page of legislative OAA program : priation ization mental ization request considered an intolerable condition here. citations in thousands of bills. He may President Carter has stated that human very well hold the record of having had Title Ill: rights are the soul of U.S. foreign policy. the most time on the floor. State administra- However, human rights must be given an It is, Mr. Speaker, with privilege that tion______$19 ------$3. 5 ------$22. 5 expanded meaning in U.S. foreign pol­ Social services.__ 153 $300 3. 97 $360 196. 57 I insert my remarks on behalf of Charlie Nutrition : icy. Not only must individual and civil Hackney and take the opportunity to Congregate..... 250 350 4. 5 375 277. 5 rights be an integral and forceful ele­ Home wish him and his family the very best delivered______80 100 ment of our policy, but so must national for the future. I am sure he will be suc­ rights. National rights, the freedom for cessful in any new adventure or career In order to demonstrate how these a nation of people to live as they wish, he seeks as his service has been excel­ figures translate into services, I figured without fear of reprisals cannot be de­ lent and he has earned the respect of the that the $4.5 million supplemental budg­ nied in any sensible human rights policy. House and its Members.• et request for nutrition services in fiscal Mr. Speaker, above and beyond all year 1979 would provide approximately else, the Ukraine nation suffers from a. 6,900 meals per day. With 800,000 cur­ lack of national rights. Russian oppres­ PRESIDENT'S BUDGET REPRESENTS sion is designed to deny the Ukraine A SETBACK FOR ADEQUATE FUND­ rently on the waiting list and over 3,000,- 000 homebound citizens not receiving people any hope of independence as a ING FOR ELDERLY SOCIAL AND nation, even going so far as to run cam­ HUMAN SERVICES federally supported meals, it does not take long to figure out the $4.5 million paigns against the Ukrainian Orthodox is inadequate. and Catholic churches. HON. MARIO BIAGGI The President's budget request f o:· Mr. Speaker, as a Member of the U.S. OF NEW YORK fiscal year 1980 does not offer any com­ Congress and as a strong believer in IN THE HOUSE OF REPRESENTATIVES fort. Funding for the most important in­ human rights, including national rights, I ask my colleagues to join with me in Thursday, January 25, 1979 itiative included in the 1978 amendments is completely missing. Funding requests voicing our support for the independence • Mr. BIAGGI. Mr. Speaker, as the for the social services and congregate of the Ukrainian nation on their 6lst chairman of the Subcommittee on Hu­ programs each fall approximately $100 anniversary.• man Services of the House Select Com­ million short of the respective author­ mittee on Aging, I would like to outline ized levels. the adverse impact of the President's MILITARY FOSTER CARE REFORM I propose to reverse this situation. ACT proposed supplemental and fiscal year When the supplemental appropriations 1980 budgets on the Older Americans Act bill is introduced to Congress, I will move programs. to amend it to make it more realistic and As an original cosponsor of the Older HON'. GEORGE MILLER reflective of the will of Congress as OF CALIFORNIA Americans Act Amendments of 1978 as demonstrated in the Older Americans well as a member of the House Education Act Amendments of 1978. My amend­ IN THE HOUSE OF REPRESENTATIVES and Labor Committee and finally as a Thursday, January 25, 1979 conferee, I am proud of the final bill. My ments will seek full funding of this leg­ role in the drafting and enactment of islation, which is the sole social services • Mr. MILLER of California. Mr. the amendments was direct and had fol­ statute designed exclusively for this Speaker, today I am introducing legisla­ lowed many months of oversight hear­ country's 23 million senior citizens. tion to alter existing policies of the ings and conferences on the then current I agree that the goal of reduced spend­ Defense Department which severely in­ programs. Those hearings identified in­ ing is laudable; however, I question the hibit the placement of foster children adequate funding as the No. 1 short­ priorities used to determine reductions. with military families. These policies coming of the act. After many debates We must avoid having the elderly, who result in a drastic reduction in the poten­ the final legislation passed by Con­ are already vulnerable to the high cost tial pool of foster homes in areas of large gress contained adequate authorization of living, set up to bear the brunt of military concentration, thereby increas­ levels totaling $4 billion over the next 3 budget cuts. ing the likelihood of inapproprtate, overly years. In our passion for economy let us not costly placement, often at distances from The Older Americans Act programs economize on compassion for those in the natural home which are greater than range from social services to nutrition need.• necessary or beneficial to the child. services; from employment opportuni­ Current military policy draws distinc­ ties to research. As a conferee, I can at­ tions between foster children residing in test to the fact that the final authoriza­ UKRAINIAN INDEPENDENCE a military household, on or off base, and tion levels were prudent and reflected natural or adopted children. Foster chil­ funding levels absolutely necessary to dren are not extended the full military fulfill the mandate of the act. HON. RAYMOND F. LEDERER benefits of medical and quartering ex­ The fiscal year 1979 appropriations for penses. This creates enormous financial OF PENNSYLVANIA disincentives against a military family's the Older Americans Act programs are IN THE HOUSE OF REPRESENTATIVES funded under a continuing resolution taking in a foster child. that makes funds available at the fiscal Wednesday, January 24, 1979 The result of the Defense Department year 1978 level of $709 million. The reso­ e Mr. LEDERER. Mr. Speaker, I would rulings is that many children are need­ lution does not make allowances for in­ like to take this opportunity to ask my lessly warehoused in institutions or flation; nor does it provide for those pro­ colleagues to join me in commemorating boarding homes. Often children are sim­ grams first authorized in 1979. the 61st anniversary of Ukraine's inde­ ply denied care away from their families The President's fiscal year 1980 budget pendence. when they may be desperately in need of request contains a supplemental appro­ /such care. Through a variety of surveys priation request for fiscal year 1979. That Mr. Speaker, the term independence and studies, we know that as many as supplemental requests a paltry $12 mil­ is one that is dear to the hearts of the two-thirds of the children in foster care, lion for Older Americans Act prograrns 50 million Ukrainians who suffer under regardless of the state studied, are in in­ in fiscal year 1979. Simple arithmetic Russian domination. The Ukrainian na- appropriate placements. In addition, the tells us that the $12 million averages out tion is a proud one, proud of their cul­ paucity of available foster homes pro­ to 50 cents per senior. ture, heritage and belief in human hibits placement of the child near his The following chart compares the ap- rights. They have a fierce desire to throw natural parents, which studies have 1222 EXTENSIONS OF REMARKS January 25, 1979 shown makes even more difficult the lived, its spirit remains-it remains in can people for fiscal restraint, spending eventual return of the child to his family. those locked up in Soviet prisons, ln limitations, and a balanced budget. Con­ The inadequate supply of foster homes those unable to live freely in their own gress can do this, and the American peo­ contributes to the existing dispropor­ land, and in their families in the ple insist that it be done. tionate allocation of funds for foster care. United States and other nations who The escalation of Federal spending 1n Institutional care is the most expensive look to us for support in reuniting the 1970's, combined with mounting bil­ form of child care. In them with their loved ones. lion dollar deficits and rapid inflation, alone, the State comptroller pointed to Despite Russian attempts to repress has stimulated numerous proposals to excessive expenditures of $233,000,000 their national identity, the Ukrainian balance the budget both in the 96th Con­ resulting from inappropriate placements. people have remained a proud people, gress and in previous years. Some man­ My bill would facilitate the placement rich in heritage and tradition. They date a balanced budget, but require a of foster children with military families. heroically have refused to succumb to systematic repayment of the national It would extend the full benefits of medi­ the cultural genocide practiced by the debt. Some require the imposition of an cal and quartering expenses to dependent Soviets. income surtax to raise whatever addi­ foster children who are eligible to receive The Ukrainian community every­ tional revenues may be necessary to bal­ maintenance costs under title IV-A of where should know that the United ance the budget. Some place a ceiling on the Social Security Act. In addition to States stands behind them in their con­ Government expenditures, providing providing these essential benefits to tinuing fight for freedom.• that appropriations shall not exceed 33 % foster children, my legislation would percent of the average national income eliminate inequities stemming from the of the previous 3 calendar years. Some restricted issuance of military base iden­ A CONSTITUTIONAL AMENDMENT link increased Federal spending to the tification cards. Currently, the foster TO BALANCE THE FEDERAL BUDGET percentage increase in the gross national child is subject to daily discrimination product. Some restrict an unbalanced when entering military confines or using HON. FLOYD J. FITHIAN budget only to times of war or national base facilities. emergency, providing little or no flexi­ These practices are unfair and unwar­ OF INDIANA bility. Some allow an unbalanced budget ranted. In areas of the country with large IN THE HOUSE OF REPRESENTATIVES whenever the Congress, by a two-thirds concentrations of military personnel, Thursday, January 25, 1979 vote, deems it necessary. they handicap local foster placement ef­ • Mr. FITHIAN. Mr. Speaker, I am in­ Each of these proposals has some merit forts and encourage antifamily policies. troducing a joint resolution proposing a and scattered support around the coun­ I invite other Members to cosponsor this constitutional amendment to balance try. After a comprehensive review of the legislation. the Federal budget-an amendment various alternatives, I am today propos­ H.R.- which recognizes the need to balance the ing a different approach-a realistic but A blll to amend title 10 and title 37 of the budget while remaining reasonably flexi­ flexible proposal to balance the Federal United States Code to provide that a foster budget while combating recession and chlld of a. member or former member of a. ble to meet potential recessions as well uniformed service shall receive the same as human and national security needs. meeting human and national security benefits provided a. natural-born chlld, The Federal budget has been balanced needs. stepchlld, or adopted chlld, of such mem­ in only 8 of the 33 years since the Second Since I believe that the Constitution ber or former member World War and only once since 1961. should not contain statute-like verbiage, Be it enacted. by the Senate and. House During the 1970's, budget deflcit:.5 have the language of my amendment is suc­ of Representatives of the United. States of cinct and deals only with a balanced America in Congress assembled., That section substantially increased, averaging $41 1072(2) (E) of title 10, United States Code, billion per year. budget. It is not tied to repayment of the ts amended by inserting ", a foster chlld," The turbulent economy of the 1970's national debt or to tax and spending immediately after "adopted chlld". has been escalating inflation, at times programs per se. It centers the budget SEC. 2. Section 401(2) of title 37, United even in double-digit figures, soaring in­ authority with the Congress, giving it States Code, ls amended by inserting "a fos­ terest rates, rising Government spend­ the power to estimate revenues and ex­ ter chlld;" immediately after "an adopted ing, and a shrinking amount ?f capital penditures. child;". formation funds. The purchasmg power The resolution which I introduce today SEC. 3. Section 551 (1) (B) of title 37, United of the dollar has been cut in half since proposes a constitutional amendment to States Code, ls amended by striking out "or adopted child" and inserting in lieu there­ 1967. Sluggish economic growth coupled balance the budget, except in times of of ", adopted chlld, or foster child"·• with unfavorable trade balances and a war or a state of national emergency as disastrously weakened dollar in foreign declared by a two-thirds vote in the money circles have been disruptive forces Congress. It allows a budget deficit of UKRAINIAN INDEPENDENCE DAY in the economy. By balancing the budget up to 2 percent of the revenues projected in a reasonable and flexible manner it by the Congress in any given year but might be possible to stabilize the econ­ provides that this temporary deficit be HON. S. WILLIAM GREEN omy, encourage economic growth, and fully repaid within 5 fiscal years. Upon OF NEW YORK bring more discipline to our economic ratification of this amendment, there IN THE HOUSE OF REPRESENTATIVES priorities. would be a 3-year delay in implementa­ tion to allow the Government adequate Wednesday, January 24, 1979 A constitutional amendment for a balanced Federal budget has won the time to make the necessary economic ad­ • Mr. GREEN. Mr. Speaker, New York overwhelming support of the American justments required to balance the budget. City has long been America's welcome people. Assorted public opinion polls This amendment constructively deals mat to individuals from throughout the demonstrate that more than three­ with the basic problem of deficit financ­ world seeking a better life in a free f ourths of the American people support ing and does so with the reasonableness country. While many of us share that a constitutional amendment. At present and flexibility required of so funda­ heritage, at times we need to be re­ at least 26 States have requirements for mental a change in our Constitution. minded that the opportunity our fore­ a balanced budget. In addition, 22 States This flexible constitutional amendment bears had is denied to millions of have urged Congress to adopt a balanced does not require a balanced budget in others. Though we may forget, the budget and about 16 States have re­ every fiscal year but allows the Congress dreams of freedom live on in the hearts quested a constitutional convention for to make· critical decisions on a yearly of all of these people, and they cou- the purpose of drafting a balanced basis. Flexibility is an essential ingredi­ rageously live for the day when that budget amendment. If 34 States petition ent of the budget process due to the ex­ will opportunity be theirs. for a constitutional convention, an un­ treme difficulties in calculating rev­ Such a group are the Ukrainians, who precedented and unpredictable conven- are celebrating both in the United . tion may result. The time for Congress enues in any given year. Economic cir­ States and in the Soviet Union the 61st to act is now-now. before such a con­ cumstances fluctuate frequently, result­ anniversary of their former independ­ vention is thrust upon the Nation. It is ing in increases or decreases of antici­ ence from Russia and Communist rule. imperative that the Congress be more pated revenue, and Congress must have While that independence was short responsive to the desires of the Ameri- the constitutional :flexibility to deal with January 25, 1979 EXTENSIONS OF REMARKS 1223 such fluctuations to meet pressing hu­ quire immediate implementation, a undertook the rebuilding of Europe via. man needs or maintain national security. process which is probably impracticable. the Marshall plan, provided interna­ This amendment contains an impor­ This amendment provides for its imple­ tional security by creating NATO, pro­ tant ingredient which other proposals mentation within the third fiscal year vided the wherewithal to fight the have not considered. By allowing a 2 per­ after ratification by the States, thus al­ Korean war, dealt with the Soviet cent deficit in any given fiscal year, lowing an adequate adjustment time. threat, enlarged our role in China, and without a declaration of war or national The time needed to pass both Houses undertook some far-reaching domestic emergency, this constitutional amend­ of Congress with the required constitu­ programs. Despite these obstacles, Presi­ ment has a built-in flex clause that per­ tional majority and secure ratification dent Truman did balance the budget mits the Congress to adjust the Federal by three-fourths of the States, plus the during 4 of his 7 years in office. Between budget to changing economic conditions 3-year implementation delay, would give 1946 and 1952 Truman actually showed or accommodate shortfalls in anticipated Congress and the President adequate a total budget surplus of more than $2 revenues. Under the provisions of this time to adjust to the concept of living billion. If President Truman could bal­ flex clause, the amendment would have within our national means. ance the budget while meeting human permitted a budget deficit of about $10 This amendment also plugs a major and national security needs in difficult, billion in fiscal year 1979. From 1946 to loophole neglected by other constitu­ turbulent times, so can we. With disci­ 1970, only 3 years__.!1946, 1959, and tional proposals. By utilizing the term pline, courage, and the will to address a 1968-had budget deficits larger than total expenditures of government, as op­ reordering of our national priorities, $10 billion. Only in the 1970's did the posed to a budget term like outlays, the today's leaders, I believe, can achieve this Nation almost consistently pile up huge amendment includes both on-budget goal. It is my hope that the passage of deficits. During the 1980's the budget items and off-budget items. Off-budget this constitutional amendment will pro­ receipts and outlays will increase sharply items were created in 1973 and showed vide a structure by which future leaders and the 2 percent fixed flex clause will an additional deficit of $60 million that will act responsibly to curb excessive allow deficits larger than $10 billion if year. By 1975, the total had skyrocketed spending and balance the Federal budg­ needed. to $8.1 billion and jumped to $11.5 bil­ et. We as a nation cannot continue to The flex clause is not, however, a loop­ lion for 1978. The estimate for 1979 is mortgage the future by simply piling one hole by which Congress could substan­ $12.5 billion. These figures undoubtedly deficit upon another. Reason, sanity, and tially increase Federal deficits and de­ will climb in the 1980's unless remedial fiscal responsibility must prevail. f eat the ultimate purpose of balancing action is taken. Budgets during the Truman administration 1 the budget. The most critical aspect of Except for the Board of Governors of the flex clause is the payback proposal. the Federal Reserve and foreign trans­ Year Deflclt Surplus Under this amendment, any deficits ac­ actions of the Exchange Stabilization cumulated under the 2 percent deficit Fund, all other off-budget agencies provision would have to be paid back by should be included in the budget process 1946 ------$16,856 ------including them as budget obligations and expenditures for them ought to be 1947 ------$3,862 within the 5 succeeding fiscal years. 1948 ------12,001 included in the total expenditures of 1949 ------603 Thus, the Federal Government assumes government. Consequently, the Postal 1950 ------3, 112 ------the ultimate responsibility to put its own Service, the Rural Electric Administra­ 1951 ------6,100 fiscal house in order and balance the tion, the Rural Telephone Bank, the 1952 ------1,517 ------budget. By allowing 5 years, it provides United States Railway Association, and the flexibility to adjust to recessions or others would again be included as part Total ------20, 485 22,566 other economic consequences without de­ of the Federal budget. This amendment, claring a national emergency. If the Na­ therefore, would prevent the situation in 1 Figures are in millions of dollars. tion were to face a severe 1930's-type de­ which agencies and programs could be I am hopeful that the Government will pression, it would, however, be a national transferred on and off the budget. It en­ conduct a disciplined analysis of priori­ emergency subject to the provision per­ ables the American people to get a truer ties and make the courageous, though un­ mitting deficits upon two-thirds vote of picture of what their Government is popular, decisions necessary to balance the Congress. really spending. the budget. When opinions differ on the The payback provision of the flex In addition, this amendment confirms merits of program X or project Y, it is clause will provide a reasonable struc­ the existing budget procedure of treat­ easily expedient to compromise by fund­ ture by which the executive and legisla­ ing capital expenditures and military ing both and piling up the deficit. This tive branches must exercise self-disci­ public works as part of a unified budget trend must be reversed if the Nation is pline and make the necessary decisions to achieve a balanced budget. to cut outlays and/or increase revenues. and prevents the adoption of a separate The 5 year time period is certainly capital budget, a procedure many States While not central to the arguments for enough time for Congress to make these have followed to give the appearance of or against a constitutional amendment, critical decisions. a balanced budget. I believe that those who propose such an The flex clause could be implemented Many critics argue that it is not pos­ amendment to balance the budget have a by a majority vote in Congress and would sible to balance the Federal budget while moral obligation to suggest what areas not require a two-thirds or three-fourths providing the necessary human and na­ the Congress might consider targeting to vote. Consequently, a small minority of tional security needs. Others consider either reduce spending or increase rev­ one-third plus one could not thwart the such a proposal a throwback to the enues. I would like to suggest several will of the majority, and the Congress horse-and-buggy days of President Mc­ potential areas for reducing Federal ex­ could vote this temporary deficit if it Kinley. Still others dismiss it as a con­ penditures or increasing revenues. These were deemed necessary. servative, even right-wing proposal not target areas include: First, reduction of This constitutional amendment with a feasible in the post-World War II era. wasteful and ineffective Federal pro­ built-in flex clause would neither disrupt I differ strongly with these assumptions. grams; second, elimination of fraudu­ the existing congressional budget proce­ One does not have to look too far back lent Federal payments; third, reduction dures nor require alteration of the into history to find a courageous political of Federal regulations; fourth, reduction Budget Act. It could be implemented leader who achieved balanced budgets in of aid to State and local governments; simply. The annual vote on the second turbulent times and who met not only fifth, selective cuts in national defense budget resolution could serve as the final the human needs of the era but imple­ budget to eliminate waste and cost over­ congressional determination on a bal­ mented numerous national security pro­ runs, and sixth, increase in revenue by anced Federal budget. By majority vote, grams. The leader is a man I greatly revising the Tax Code and closing loop­ the Congress could favor a deficit in a admire-President Harry Truman. Dur­ holes to reduce tax spending. given year. Consequently, the second ing the Truman administration the I am sure that other target areas could budget resolution could serve as the de'­ United States went through a difficult and should be added to this list. But I vice to implement this proposed consti­ post-war economic adjustment period believe they are a starting point. I am not tutional amendment. with social and economic turmoil and suggesting that budget changes in any This amendment also has another de­ great inflation. In the area of foreign one of the target areas will instantly gree of flexibility. Some amendments re- affairs, the United States under Truman create a balanced budget. Working with- 1224 EXTENSIONS OF REMARKS January 25, 1979 in reasonable political and economic con­ national product. By 1949, it had climbed code. Loopholes, tax preferences, tax in­ straints, it might be possible to make to $18 billion or 48 percent of the budget centives-call them what you will­ budgetary changes in each of these areas and 0.7 percent of the GNP. In 1959 the usually mean only one thing: lower taxes and perhaps others so that the cumula­ Federal Government contributed $6.4 for a preferential few and higher taxes tive effort would result in a balanced Fed­ billion, or 7 percent of the budget and for the rest. Closing these tax loopholes eral budget. A courageous but unpopular 1.4 percent of the GNP. Ten years later, will not be easy, but a stab must be made. program-by-program analysis of the the amount had climbed to $20 billion, If we can succeed in eliminating unfair budget, aided by a balanced budget struc­ or 11 percent of the budget and 2.2 per­ tax breaks for the priviledged few, we as ture mandated by a constitutional cent of the GNP. a nation can make the tax system more amendment, should result in balancing Since 1972, Federal aid to State and equitable, increase Federal revenues, and revenues with expenditures in the 1980's. local governments has more than balance the budget. I would like to sketch the prospects of doubled. In 1972, aid was $34 billion. On Another target area for the increase altering the budget in each of these target January 17, 1979, the Treasury Depart­ of revenues is the need for reductions areas. ment announced that Federal aid would in tax spending. In fiscal year 1980 al­ A target for potential reduction in Fed­ reach nearly $78 billion this year. This most 100 separate tax expenditures eral spending would be the numerous huge increase made Federal aid to the programs will result in a loss of about wasteful and duplicative Federal pro­ State and local governments one of the $150 billion in revenue or 28 per­ grams. Congress and the executive fastest growing portions of the Federal cent of the current services budget. Tax branch tend to pile one program upon budget, outpacing even costs of social expenditure programs have more than another without adequately addressing security benefits and national defense doubled since 1971, with total revenues the fundamental question of whether or spending. These huge expenditures re­ lost increasing at a rate of 141 percent. not these programs ought even to exist. quire a more careful analysis. In the past these programs have enjoyed If the Congress adopted sunset provisions, I am not suggesting that the Federal a preferred status. I suggest that these agencies and programs would be auto­ Government take a meat ax to programs programs be subjected to the same ana­ matically terminated every few years un­ of State and local government. I am not lytical decisionmaking process and pri­ less they were reauthorized by Congress. suggesting that revenue sharing be ter­ ority basis as all current spending pro­ It would force a regular review of spend­ minated or that deep cuts be made in grams are. Perhaps we need to examine ing priorities, eliminate waste and over­ health, education, or transportation pro­ the basic tax spending programs in edu­ lap, and stop the proliferation of un­ grams. If we are to reasonably approach cation, housing, employment, health needed programs. I believe the American the task of reducing Federal spending care, nutrition, income security, and people are telling us to reduce spending and achieving a balanced Federal budget, other areas. It is important that the and enhance our effort against our most though, I think it is important to re­ Government undertake a comprehensive pressing problem-inflation_. Government evaluate and reexamine some of the review of all Federal spending programs, must be more efficient and less expensive. Federal aid programs to State and local including the need for reductions in tax Another target for reducing Govern­ governments and cut those programs spending. Increasing revenue, as well as ment expenditures is the elimination of where possible. Some programs are no cutting spending, is necessary if we as fraudulent Federal payments. At the De­ longer needed and can, therefore, be a nation are going to achieve a balanced partment of Health, Education, and Wel­ eliminated. budget. In conclusion, . the amendment I am fare, top officials admitted last year that It would be easy to say, let us slash approximately $1.5 billion is lost annu­ introducing today will establish a rea­ the aid to State and local governments sonable means of balancing the Federal ally as a result of fraud and waste. Over­ and balance the budget. It is easy to payments and fraudulent payments for budget while providing flexibility to deal point out that the aid to these govern­ with shifting economic circumstances, medicare and welfare must be eliminated. mental units substantially exceeded the Educational loans must be repaid. The human needs, and national security. It national deficit in the past few years will create a structure by which Govern­ Government must determine where the and that the Nation could balance the money is going and how the drain cam ment can make a disciplined analysis of budget by eliminating this aid. It is expenditures and revenues, perhaps on be stopped. Widening reports of payoffs equally demagogic for the States to cut for lucrative contracts from the General a program-by-program basis, and make taxes and to balance their budgets while the courageous decisions necessary to Services Administration indicate the holding out their hands for Federal aid. need for a thorough examination of Gov­ balance the budget. Last year, the non-Federal govern­ I urge my colleagues support this ernment agencies with contracting au­ mental units ran up a surplus of nearly to thority. The passage last year of legisla­ measure, and I especially urge my col­ $30 billion, while the Federal deficit leagues on the Judiciary and the Budget tion establishing offices of Inspector plunged to more than $70 billion. The General in executive departments and Committees to hold indepth public Federal portion of the State and local hearings on this important constitu­ agencies will strengthen the ability of budgets has almost doubled since 1960, the Federal Government to audit and in­ tional amendment. The text of the res­ from less than 15 percent to almost 30 olution follows in the RECORD. vestigate programs and operations. A percent. It is this trend that must be rigorous investigation by the Inspector H.J. RES.- halted and turned around if we are to Joint Resolution proposing an amendment to General will help. accomplish a balanced Federal budget the Constitution of the United States to Another target area for reducing Fed­ in the 1980's. limit the expenditUTe of Government funds eral expenditures is the need to eliminate While many critics have considered the during :any fiscal year to the total revenue unneeded Government regulations. Each national defense budget sacred, I believe of the Government as projected by the year the Federal Government publishes that it can be selectively pared by reduc­ Congress for suoh year some 10,000 new regulations which have ing wasteful and unneeded programs, by Resolved by the Senate and House of .Repre­ the force of law. Millions of man-hours eliminating cost overruns on weapons sentatives of the United States of America in are expended and thousands of Federal systems, by reducing the number of mili­ Congress assembled (two-thirds of each House concurring therein), That the follow­ employees become involved in writing, tary brass in the Armed Forces, and by ing article is proposed as an amendment to interpreting, and enforcing these regu­ carefully evaluating future retirement the Constitution of the United States, to be lations. By reducing or even eliminating programs and benefits. Recent studies valid only if ratified by the legislatures of some of these regulations, it is possible point out that our military forces have three-fourths of the several States within to save the Federal Government millions a higher proportion of brass to soldiers seven yea.rs from the date of its submission of dollars and better allocate the Fed­ than we had at the peak of World War by the Congress: eral work force. II-meaning that we were probably pay­ "ARTICLE One area of the Federal budget which ing for too many admirals and generals "SECTION 1. Except as provided in section has escalated dramatically in the last 40 in the Pentagon and not getting enough 3, the total expenditure of Government funds military strength for the dollars we during any fiscal year shall not exceed the years have been Federal aid to State and total revenue of the Government a.s pro­ local governments. In 1940, the Federal spend. jected by the Congress for that fiscal year. GoveI'lnment gave only $872 million to While spending may be reduced, it is "SEC. 2. The provisions of section 1 shall State and local governments-9.2 percent also possible to increase revenue by ob­ not apply with respect to a.ny fiscal year of the ·budget and 0.9 percent of the gross taining tax reform and altering the tax during any part of which the United States January 25, 1979 EXTENSIONS OF REMARKS 1225 is in a state of war declared by the Congress ductions in defense contracts would re­ tracts, including any under negotiation, rep­ pursuant to section 8 of article I of the Con­ ceive financial assistance and employ­ resents more than 20 per centum of the total stitution or any fiscal year during which the ment training under my bill. plant business. Congress, by a vote of two-thirds of each (5) "Defense facili!ty" means any private House, adopts a joint resolution stating that The Defense Economic Adjustment plant or other establishment ( or part there­ a national emergency requires the suspen­ Act is an essential step toward a more of) used under a defense con-tract or en­ sion of the application of section 1. This secure world and a more prosperous gaged in the production, repair modification, Joint resolution shall not be effective unless America. There are currently 24 cospon­ maintenance, stom.ge, or handling of defense approved by the President. sors of the legislation-listed below-and material, or any Government-owned mili­ "SEC. 3. The total expenditure of Govern­ I invite our other colleagues to join in tary facility suoh as a base, fort, shipyard, or ment funds during any fiscal year may exceed this effort to accomplish the urgent goals depot. the total revenue of the Government as pro­ of arms limitation and socially and eco­ (6) "Defense mait.erial" means any item of jected by the Congress for that fiscal year weaponry, munitions, equipment, or special­ by two percent of the total revenue of the nomically beneficial production. ized supplies or services intended for use by Government as projected by the Congress for H.R. - a defense a.gency or for sale to or for the use that fiscal year. A bill to facilitate the economic adjustment Qf a. foreign country which has primarily "SEC. 4. If the total expenditure of Govern­ of communities, industries, and workers to military application. ment funds during any fiscal year exceeds the civilian-oriented initiatives, projects, and ( 7) "[)efense service" means the research, total revenue of the Government for that commitments when they have been sub­ development, production, test, inspection, or fiscal year, the resulting deficit shall be ex­ stantially and seriously affected by reduc­ repair of a.ny defense material for use by a tinguished by the end of the fifth fiscal year tions in defense contracts, military facili­ defense agency or pursuant to a defense con­ after the fiscal year in which that deficit ties, and arms export which have occurred tract. occurs. as a result of the Nation's efforts to pursue (8) "Displaced" or "displacement" means "SEc. 5. If the total revenue of the Govern­ an international arms control policy and with respect to any worker of a defense fa­ ment during any fiscal year exceeds the total to realign defense expenditures according cility or defense agency the separation, on a expenditure of Government funds for that to changing national security require­ permanent or temporary basis, of such fiscal year, the resulting surplus shall be ments, and to prevent the ensuing dislo­ worker from employment with such faclllty deemed revenue of the Government for the cations from contributing to or exacerbat­ or agency. following fiscal year. ing recessionary effects (9) "Fund" means the Workers Economic "SEC. 6. As used in this article, expenditure Be it enacted by the Senate and House of Adjustment Reserve Trust Fund established of Government funds shall not include any Representatives of the United States of by title III of this Act. expenditure for the redemption of bonds, America in Congress assembled, That this (10) "Person" means any cor.poration, firm, notes, or other similar obligations of the Act may be cited as the "Defense Economic partnership, association, individual, or other Government, and revenue of the Government Adjustment Act". entity. shall not include any revenue derived from DECLARATION OF PURPOSE AND POLICY (11) "State" includes the District of the issuance of bonds, notes, or other simUa.r SEc. 2. (a.) The Congress finds and declra.res Columbia and the Common-wealth of Puerto obligations of the Government. that the United States during the past two Rico. "SEC. 7. The Congress shall have power to and one-half decades ma.de heavy economic, (12) "State agency" means the agency of enforce this article by appropriate legislation. scientific, and technical commitments for a State which administers its unemployment "SEC. 8. This article shall take effect on the defense; that these commitments led to the compensation law, approved by the Secre­ first day of the third fiscal year beginning development of specialized skills and business tary of Labor under section 3304 of the In­ after the date of the adoption of this ar­ practices not directly applicable in the civll­ ternal Revenue Oode of 1954. ticle."e i,an sector of the economy; that as these (13) "Substantially and seriously affected" commitments 1a,re modified to take account means any community in which more than of changing requirements for na.tiona,l se­ 5 per centum of its labor force is directly ECONOMIC ADJUSTMENT ASSIST­ curity and domestic needs, careful preps.ra­ employed by a defense facility or contractor ANCE AND DEFENSE SPENDING tion is necessary if serious economic dislo­ in furnishing specialized materials or serv­ cations are to ·be a.voided; and that the eco­ ices under a defense contract. nomic a.billty of the Nation e.nd of manage­ HON. TED WEISS ment, l'aibor, e.nd oapital to adjust to chang­ TITLE I-DEFENSE ECONOMIC ADJUST­ MENT OOUNCIL OF NEW YORK ing security needs is consistent with the gen­ eral welfaa-e of the United States. ESTABLISHMENT IN THE HOUSE OF REPRESENTATIVES (b) It is the purpose of this Act to pro­ SEC. 101. (a) There ls established in the Thursday, January 25, 1979 vide the means through which the United Executive Office of the President the De­ States can promote orderly economic adjust­ fense Economic Adjustment Council which • Mr. WEISS. Mr. Speaker, one of the ment which will (1) minimize the disloca­ shall be composed of- most formidable obstacles to effective tion of workers, oomm.unlties, and indus­ ( 1) the Secretary of Commerce; arms control initiatives is the argument tries, (2) assme tbat the dislocations do not (2) the secretary of Labor; that cutbacks in defense spending will compound recessionary trends, and (3) en­ (3) the Secretary of Health, Education, cause serious economic dislocation. The courage conversion of technologies a.nd ma.n­ and Welfare; cause of world peace and mutual dis­ agerila.l and worker skills developed in de­ (4) the Secretary of Housing and Urban armament is hindered by fears that the fense production to the service of projects Development; conversion of military facilities to peace­ in the civilian sector. (5) the Secretary of Transportation; ful purposes will result in significant job DEFINITIONS ( 6) the Chairman of the Council of Eco­ losses and industrial disruption. SEc. 3. As used in this Act, the term- nomic Advisers; ( 1) "Council" means the Defense F.co­ (7) six representatives of the business­ To counter these claims and to facili­ nomic Adjustment Council established un­ management community who represent non­ tate a smooth transition from unneces­ der section 101 of this Act. defense business to be appointed by the sary defense activity to essential human (2) "Defense agency" means the Depart­ President; and service production, I am today introduc­ ment Of Defense, the Energy Re.sea.1th a.nd (8) six representatives of labor union orga­ ing a Defense Economic Adjustment Development Administration, or the Na­ nizations to ·be appointed by the President. Act. This legislation represents a sound tional Aeronautics a.ind Space Administra­ (b) The secretary of Commerce shall be method of encouraging arms limitation tion. Chairman of the Council, shall preside over and promoting both economic expansion (3) "Detense contract" means any con­ meetings of the Council, and shall designate and the national welfare. t:m.ct entered into between a. person or non­ a member of the Council to preside in the proflit organi2'Jaition and a defense agency to absence of ithe Chairman. My bill provides economic assistance to furnish defense material or services to such ( c) ( 1) iAn Office of Economic Adjustment those communities, industries and work­ agency, and any contract entered into /be­ shall be established within the Executive ers affected by reductions in defense tween a. person or nonprofit orga.niz.a,tion a.nd Office of the President to provide staff sup­ expenditures. The legislation would cre­ any foreign country or person acting on be­ port for the Council with a maximum staff ate a Defense Economic Adjustment half of a foreign country to furnish defense size of fifteen. The Office shall be headed by Council in the Executive Office of the material or services to or tor suoh country an Executive Secretary who shall be ap­ President and would establish an eco­ pursuant to the Arms Exipor,t Control Act or pointed by the President (af,ter consultation nomic adjustment trust fund to :finance similar Act. with the Council) and who shall ·be compen­ conversion of defense facilities to peace­ (4) "Defense contrtl.ctor" means any per­ sated at the rate provided for grade 18 of the son having not less tha.n 5 per cen'tum ot the General Schedule under section 5332 of title ful production. Alternative use commit­ organization's labor force eng,aged in the 5, United States Code. tees would be formed under the bill to furnishing of defense m.aterla.I pursuant to (2) The members of such staff and any undertake careful economic planning the terms of the d~ense contracit or subcon­ task force established by the council shall and research. Workers displaced by re- tract and for whom such contract or con- include marketing specialists, production 1226 EXTENSIONS OF REMARKS January 25, 1979 engineers, plant layout experts, urban plan­ search, product design, and production oper­ property, manpower skills and expertise, ac­ ning experts, and manpower training ex­ ations within civilian-oriented facilities; cessibility, environment, and economic needs; perts. At the request of the Council, the (D) outline the basic requirements for the (2) develop and review at least once every staff and any task force -established by the length and nature of occupational retrain­ two years detailed plans for the conversion of Council shall carry out such duties as the ing for production workers and Junior level the facility to efficient, civilian-oriented pro­ Council may prescribe. administrative employees; ductive activity to be carried out in the event (3) The Council may appoint and fix the (E) include illustrative case studies of the facility is substantially and seriously af­ compensation of such personnel as it deems successful conversion to efficient civilian­ fected by a Government decision to reduce, advisable. The Council may procure tem­ oriented production, or references thereto; modify, or close the facility, conclude any de­ porary and interm! ttent services to the same {F) provide a checklist of critical points fense contracts, or disapprove a license to sell extent as authorized by section 3109 of title requiring attention at each stage of the con­ or export defense materials to nongovern­ 5, United States Code. version process; mental parties; (4) The Council is authorized to secure di­ (G) contain an annotated. bibliography of (3) provide occupational retraining and re­ rectly from any executive department, bu­ conversion related works; and employment counseling services for all em­ reau, agency, board, commission, office, in­ (H) be revised, as necessary, every two ployees to be displaced by the implementa­ dependent establishment, or inStrumental­ years; and tion of a conversion plan or closing of the ity, infoonation, suggestions, estimates, and ( 5) perform such other duties as are im­ facility, beginning eighteen months before statistics to carry out this Act, and each posed upon the Council by this Act; and the d,ate of commencement of the implemen­ such entity shall furnish such information, (6) promulgate such regulations as may tation of that plan or the permanent dosing suggestions, estimates, and statistics direct­ be necessary to carry out the provisions of of that facility; and ly to the Council upon request made by the this Act. (4) dissolve itself and return all of its Chairman. TITLE ll-ALTERNATIVE USE assets to the control of the management of (d) Members of the Council who are offi­ C.OMMITI'EES the faciUty immediately upon final comple­ cers or employees of the Federal Government tion of the conversion process. ESTABLISHMENT shall receive no additional compensation by ADMINISTRATIVE PROVISIONS virtue of membership on the Council. Other SEc. 201. (a) There shall be established at SEc. 203. (a) The Alternative Use Commit­ members appointed to the Council shall re­ every defense facility employing at least rtwo tees may hire staff personnel as well a.s any ceive compensation at the rate of not to ex­ hundred persons, and at every business con­ specialists it may determine necessary. ceed $135 per diem when engaged in the per­ cern having at least 20 per centum of gross (b) The Alternative Use Committees are formance of duties of the council. While revenue due to business re3ulting from any authorized to obtain a complete and detailed away from their homes or regular places of defense contract or contracts, an Alternative inventory of all land, buildings, ca.pita.I business in the performance of services for Use Committee to undertake economic con­ equipment, and other equipment, including the Council, members of the Council shall version planning and preparation for the its condition, and are authorized to obtain be allowed travel expenses, including per employment of the personnel and utilization information regarding the occupations and diem in lieu of subsistence, in the same man­ of the facilities in the event of a reduction skills of all civilian employees of the facility. ner as persons employed intermittently in or elimination of any defense facility or the the Government service are allowed expenses curtailment, conclusion, or disapproval of CONVERSION PLANS under section 5703(b) of title 5, United any defense contract, resulting in substan· SEC. 204. (a.) The conversion plans shall­ States Code. tial and serious unemployment. (!) be so designed as to maximize the ex­ DUTIES (b) In the case of a defense facility that is tent to which the personnel required for the SEc. 102. (a) The Council shall- a Government military installation, the Al­ efficient operation of the converted facility (1) encourage the preparation of concrete ternative Use Committee shall consist of at can be drawn from personnel with the types plans for civ1lian-oriented public projects least nine members, an equal number of and levels of skill approximating sk111 levels addressing vital areas of national concern whom shall ( 1) be designated by the base and types possessed by civilian personnel em­ (such as mass transportation, housing, edu­ commander, (2) represent the civ111an em­ ployed at the defense facility prior to its cation, health care, environmental protec­ ployees of the installation, and (3) represent conversion; tion, renewable energy resources, et cetera) the local community and interested citizens (2) specify the numbers of civilian person­ by the various civ1lian agencies of the Fed­ as designed by the chief executive officer of nel, by type and level of skill, employed at eral Government, as well a.s by State and the local government of the community, but the facility prior to conversion, whose con­ local governments; shall not include any individuals employed tinued employment is not consistent with at the military installation. efficient operation of the civi11an-oriented (2) supervise the establishment in the De­ (c) (1) In the case of a defense fac1Uty that converted facility; partment of Labor of a. Job Information Bank (3) specify the numbers of positions, by intended to coordinate State, local, and Fed­ is not a governmental military installation, and of any defense contractor subject to sub­ level and type of skill, if any, that will be eral employment services so as to serve as a needed at the converted facility because per­ resource on civilian Job information for section (a), there shall be included in each defense contract provisions to assure that an sonnel employed at the preconverted fac1lity workers released from defense-related em­ do not possess the levels or types of skllls ployment a.s a result of the shifting or re­ Alternative Use Committee is established in accordance with the provisions of this sub­ required; duction, or both, of defense-related. expendi­ ( 4) indicate in detail what new plant and tures; section. (2) The Alternative Use Committees shall equipment and modifications to existing (3) prepare suggestive lists, by geographic consist of at least nine members, an equal plant and equipment a.re required for the region and area. of specialization, of organi­ number of whom shall be named by- converted faclllty; zations and individual consultants in fields ( 5) include an estimate of financing re­ such as marketing, fac111ties design, organi­ (A) the management of the facility, quirements and a. financial plan for the con­ zation, production engineering, and engi­ (B) the nonmanagement employees of the version; and neering economy whose major professional facllity, and (6) provide for completion of the entire experience has been in civ111an-oriented ac­ (C) the chief executive officer of the local conversion process within a. period not to tivity, and furnish such lists to local Alter­ community government, representing the lo­ exceed two years. native Use Committees upon their request, cal community, interested citizens, but shall without explicit or implicit endorsement of not include any individuals employed at the TITLE III-ECONOMIC ADJUSTMENT FUND the personnel so listed; defense facility. FUND ESTABLISHED (4) prepare and distribute a. Conversion (d) The funds for performing the planning SEC. 301. There is hereby'· established in the Guidelines Handbook, not to exceed three and reporting requirements imposed under Treasury of the United States a trust fund hundred pages in length, which shall- this title as applied to defense contractors, to be known as the Workers Economic Ad­ (A) include a discussion of the basic prob­ including market research, independent stud­ justment Reserve Trust Fund. lems involved in the retraining, reorientation, ies, and the employment of specialized per­ DEPOSITS INTO THE FUND and reorganization of personnel (mana­ sonnel, shall be paid from funds derived from the military contract or base operating costs SEC. 302. (a.) The Federal Government shall gerial, technical, administrative, and produc­ not enter into any defense contra.ct with any tion) and the redirection of physical plants at a rate equal to $50 per employee per year in the first year and $25 per employee per defense contractor to furnish defense mate­ for efficient, civilian-oriented productive rial or services to a defense agency, nor shall activity; year in subsequent years. Office space shall also be provided by the management of the it permit the sale of such defense material or (B) outline the basic requirements of pro­ facmty, without charge. services to or on behalf of any other country, grams for professional retraining of mana­ unless the defense contractor fulfills a re­ gerial personnel in order to reorient them to FUNCTIONS OF THE ALTERNATIVE USE quirement to pay to the fund an amount the management of civilian, market-oriented COMMITTEES equal to 11,4 per centum per year of the value enterprise; SEC. 202. (a) The Alternative Use Commit­ of the contractor's gross revenue on such (C) outline the basic requirements for a tees shall- sales. program of professional retraining of techni­ ( 1) evaluate the assets of the defense fa­ (b) Amounts paid by a defense contractor cal personnel in order to effectively reorient cility and the resources and requirements of pursuant to this section shall be deposited them to the preva111ng conditions of re- the local community in terms of physical in the fund. January 25, 1979 EXTENSIONS OF REMARKS 1227

MANAGEMENT OF THE FUND to 90 per centum of the first $20,000 per year section 3304 of the Internal Revenue Code of SEc. 303. (a) It shall be the duty of the and 50 per centum of the next $6,000 in ex­ 1964, which- Secretary of the Treasury to invest such por­ cess of $20,000 for that year, of that worker's ( I) as a.gent of the Council, shall upon tion of the moneys in the fund as is not, in regular annual wages (based on a forty-hour certifications and other determinations re­ the judgment of the Secretary, required to workweek, or, in the event a defense con­ quired in section 401 of this Act, make such meet current withdrawal requirements. Such tractor has a regular workweek payable at payments and, provide such benefits as are investments may be made only in interest­ straight-time wage rates other than forty authorized by section 402 of this Act, on the bea.ring obligations of the United States or hours, for such regular workweek) prior to basis provided for in this Act, and shall in obligations guaranteed as to both princi­ that worker's displacement. otherwise cooperate with the Council and pal and interest by the United States. For (2) Vested pension credit under any ap­ other State agencies in carrying out the pro­ such purpose, such obligations may be ac­ plicable pension plan maintained by the visions of this Act; and quired ( 1) on original issue at the issue defense contractor from which such worker (2) shall be reimbursed for all benefits price, or (2) by purchase of outstanding was displaced, for the period of that worker's pa.id pursuant to such agreement and all obligations at the market price. The purposes employment with such facillty, a..nd the two­ administrative costs incurred in carrying out for which obligations of the United States year period following that worker's displace­ such a.greemen t. ma.y be issued under the Second Liberty ment, during which two-year period, for the (b) (1) There shall be pa.id to ea.ch State Bond Act, as a.mended, are hereby extended purpose of the Employee Retirement Income agency which has an agreement under this to authorize the issuance a.t par of special Security Act of 1974 and the corresponding section, either in advance or by way of re­ obligations exclusively to the fund. Such spe­ provisions of the Internal Revenue Code of imbursement, as may be determined by the cial obligations shall bear interest a.t a rate 1964 (relating to a qualified plan) such work­ Council, such sum as the Council estimates equal to the average rate of interest, er shall be treated a.s if such worker were the agency wlll be entitled to receive under computed as to the end of the calen­ employed by such contractor on the same such agreement for each calendar month, dar month next preceding the date of basis as such worker was employed on the reduced or increased, as the case may be; such issue, borne by all marketable interest­ day preceding such worker's displacement; by any sum by which the Council finds that bearlng obligations of the United States then except that pension credit during such two­ its estimates for any prior calendar month forming pa.rt of the public debt; except that year period shall be reduced to the extent of were greater or less than amounts which where such average rate is not a multiple of vested pension credit earned with another should have been pa.id to the agency. Such one-eighth of 1 per centum, the ra.te of employer during such two-year period. estimates may be made upon the basis of interest of such special obligations shall be (3) Maintenance of any hospital, surgical, statistical sampling, or other method as the multiple of one-eighth of 1 per centum medical, dlsabillty, life (and other survivor) agreed upon by the Council and the State next lower than such average rate. Such insurance coverage which such individual agency. obligations shall be issued only if the Secre­ (including members of such individual's (2) The Jouncll shall from time to time tary of the Treasury determines that the family) had by reason of employment by a certify to the Secretary of the Treasury for purchase of other interest-bearing obliga­ defense contractor prior to such displace­ payment to each State agency which has an tions of the United States, or of obligations ment; except that if such worker so displaced agreement under this section sums payable guaranteed as to both principal and interest ls otherwise employed during such two-year to such agency under para.graph ( 1) of this by the United States on original issue or period, such worker shall be entitled to re­ subsection. The Secretary of the Treasury, at the market price, ls not in the public ceive benefits under this paragraph to the prior to audit or settlement by the General interest. extent necessary to provide such worker with Accounting Office, shall make payments to the (b) Any obligations acquired by the fund the same protection described in this para.­ agency, in accordance with such certification, ( except special obligations issued exclusively graph as such worker (including fa.mlly from the fund. to the fund) may be sold by the Secretary members) would have had if such worker (3) All money pa.id a State agency under of the Treasury a.t the market price, and such had not been displaced. any such agreement shall be used solely for special obligations may be reduced at par (4) Retraining for clv111a.n work providing the purposes for which it is pa.id; and any plus accrued interest. pay and status as comparable as possible to money so pa.id which ls not used for such the employment from which such worker purposes shall be returned, at the time spec­ TITLE IV-ECONOMIC ADJUSTMENT AS· ified in such agreement, to the Treasury. SISTANCE FOR WORKERS was displaced or retraining under title I, II, or III of the Comprehensive Employment and (c) In any case involving a. worker entitled CERTIFICATION Training Act of 1973. to ·benefits under section 402 who is in a SEc. 401. (a) All displacements affecting ( 6) Retraining for civ1lla.n work approved State with respect to which there ls no more than 6 per centum of workers employed by the Secretary of Labor or, in the case of agreement pursuant to this section, the Sec­ by a defense contractor attributable, in whole a worker in a State which has entered into retary of Labor shall, under regulations pre­ or in pa.rt, to a. reduction of the volume of a contra.ct with the Council pursuant to scribed by the Secretary, administer such defense work in such fa.c111ty shall upon cer­ section 403 of this Act, by the State agency, benefits on behalf of such worker. The Sec­ tification by the local Alternative Use Com­ and reimbursement for reasonable relocation retary of Labor, in administering such bene­ mittee be reported by the management of the expenses as specified in regulations pre­ fits, shall, from time to time, certify to the firm or government fac111ty to the State em­ scribed by the Secretary of Labor incurred Secretary of the Treasury for payment to such ployment office acting as a.gent for the admin­ by such worker in moving to another loca­ worker the a.mounts of such benefits to which istration of the employees benefit program. tion in order to take advantage of an em­ such worker and the Secretary of the Treas­ (b) Any worker (or union representing ployment opportunity to which such worker ury shall make payments to such worker, in such worker) of a defense contractor or non­ is referred, or which ls determined to be accordance with such certification, from the profit contractor aggrieved by any matter suitable, by the Secretary of Labor or, in the fund. contained in a report filed by such contractor case of a. worker in a. State which has entered LIMITATION ON BENEFITS pursuant to subsection (a) of this section into a. contra.ct with the Council pursuant ( or by any matter relating to such worker's to section 403 of this Act, by the State SEC. 404. In no case shall any displaced certification, or failure to be so certified, or agency. worker be eligible for benefits under section such worker's eligib111ty for such conversion 402 (a.) of this Act unless such worker agrees benefits, or the kind or a.mount thereof) shall (6) No individual shall be eligible for more (1) to maintain, on a current basis, during than one conversion related program of the period of his displacement, an active be entitled to appeal such matter to the Sec­ benefits. retary of Labor, or, if such worker ls in a registration with the Secretary of Labor or State which has entered into a contra.ct with (b) All managerial and technical em­ an appropriate State employment agency, as the Council pursuant to section 403 of this ployees who have spent more than 50 per the case may be, and (2) to accept any em­ Act, to the appropriate State agency. centum of the ten yea.rs preceding imple­ ployment, determined by the Secretary of mentation of the conversion plan working ENTITLEMENT TO BENEFITS Labor or agency, as the case may be, to be in defense-related industry or at mmta.ry suitable, to which such worker ls referred SEC. 402. (a.) Any worker certified pursuant bases must participate in or have completed by the Secretary of Labor or such agency. to section 401 of this Act as eligible for ad­ a. program of professional retraining meet­ No such benefits shall be paid under this Act justment benefits by reason of such worker's ing the requirements specified in the con­ to any worker who fails to maintain such displacement from a defense contractor sha.11 version Guidelines Handbook of the Defense registration or to accept such employment. be entitled, for the two-year period follow­ Economic Adjustment Council in order to ing displacement, to whichever of the follow­ be eligible for the special financial assist­ TREATMENT OF UNEMPLOYMENT COMPENSA• ing benefits a.re a.ppllca.ble: ance, relocation a.id, and special job infor­ TION (1) Compensation, on a weekly basis, suf­ mation services provided by this Act. All SEC. 406. In no case shall any adjustment ficient, when added to any benefits which other employees may elect to enter such a benefits pa.id pursuant to this Act be taken such worker receives or ls entitled to, receive program. int.o consideration in determining eligib111ty for such weekly period under any Federal or STATE AGREEMENTS for unemployment compensation under any State unemployment compensation program SEC. 403. (a) The Council ls authorized to Federal or State unemployment compensa­ ( or any plan of such worker's employer pro­ enter and shall, on behalf of the United tion law or in determining the a.mount of viding for such benefits} ,by reason of such States, enter into an agreement with a State, entitlement thereunder. worker displacement, and any earnings dur­ or with any agency administering the un­ TERMINATION OF BENEFITS ing such weekly period from other employ­ employment compensation law of any State SEC. 406. Adjustment benefits shall termi­ ment, to maintain an Income at a level equal approved by the Secretary of Labor under nate when a worker eligible for benefits ob- 1228 EXTENSIONS OF REMARKS January 25, 1979 ta~ns employment providing 90 per centum for the other body, we in the House Post-and various special interest and of the first $20,000 per year and 50 per cen­ have an obligation to the taxpayer to trade publications. tum of the next $5,000 in excess of $20,000 let him know how we expend public My confidence is also buoyed by the. for that year of that worker's previous wages funds to run our individual offices and addition of a new Senate sPonsor for the or two yea.rs after displacement, whichever our committees. Certainly, it is not too Trible homemaker retirement bill. Dur­ occurs sooner. much to ask that those who set policy ing the 95th Congress, former Senator TITLE V-USE OF CERTAIN RESEARCH and appropriate funds for other gov­ Wendell Anderson of Minnesota intro­ FUNDS ernmental functions be subject to duced s. 1783 as the companion to my AMENDMENT TO PUBLIC LAW 91-441 scrutiny on how they will spend $1,118,- H.R. 4649. However, with Senator An­ SEC. 501. (a) Section 203(a) of the Act of 244,400 in tax dollars in 1979 to carry derson's defeat, this bill became a piece October 7, 1970 (Public Law 91-441), is out the legislative function. of legislation in search of a sponsor­ a.mended by- Therefore, my bill would require the and I believe it has found an outstand­ (1) inserting "or, in the opinion of the De­ GAO to perform an audit of any expendi­ ing one in Senator LLOYD BENTSEN of fense Economic Adjustment Council, a po­ tures or financial transactions of each Texas. Senator BENTSEN serves as chair­ ten tia.l relationship to an urgent national man of the Senate Subcommittee on Pri­ requirement in a designated nondefense Member, officer, or standing committee sector," after "function or operation"; of the House of Representatives involv­ vate Pension Plans, which will be han­ (2) inserting "or the Defense Economic ing disbursements from the contingent dling the homemaker retirement bill in Adjustment Council" after "Department of fund of the House during calendar years the other body. Moreover, the other two Defense" in paragraph ( 1) ; and 1974, 1975, 1976, 1977, and 1978, such democrat Members of that subcommit­ (3) adding at the end of such section 203 audit to be completed within 9 months. tee in the 95th Congress (Senators the following: Beyond that, my bill would require, be­ GRAVEL and MATSUNAGA) were both co­ "(f) The Defense Economic Adjustment ginning with calendar year 1979 and sponsors of Senator Anderson's bill. Council shall be required to define urgent each calendar year thereafter, an annual I believe an urgent need exists for national requirements for non-defense sec­ GAO audit to be completed no later than prompt action on the Trible homemaker tors of the economy, and shall be required to include in the designation, any areas so 3 months following the close of the retirement bill. defined by the Congress. Research and de­ calendar year. UPon completion of any The statement follows: velopment related to energy and fuel effi­ audit, the Comptroller General would TRIBLE HOMEMAKER RETIREMENT BILL ciency shall be considered a designated transmit a rePort to the Speaker of the Recently passed laws permit wage earners area.". House with respect to the results of such to add to thetr financial security by estab­ (b) Section 204 of such Act is a.mended audit and any such report would be lishing personal retirement plans. Unfortu­ by inserting "or, in the opinion of the De­ available to the public for inspection and nately, these laws have done little to help fense Economic Adjustment Council, a po­ copies furnished upon request for a rea­ the largest group of workers in America.­ tential relationship to an urgent national sonable charge. the homemaker. requirement in a designated nondefense sec­ My bill would end this discrimination tor of the economy" after "military function More than ever, Government, and cer­ against homemakers and allow these individ­ or operation". tainly Congress, is being held up to pub­ uals to establish individual retirement ac­ lic scrutiny. If we already resolved in TITLE VI-AUTHORIZATION OF counts-commonly known as IRA's. APPROPRIATIONS the 95th Congress to open up our per­ Before I outline the specifics of my bill, sonal finances to public view, I can think I would first like to give you some back­ APPROPRIATIONS AUTHORIZED of no reason for not letting the tax­ ground information on IRA's. SEC. 601. There are authorized to be ap­ payers see how their public moneys are The most commonly asked question is: propriated such sums as may be necessary to beingused.e "What is an individual rettrement account carry out the provisions of this Act.e and how does it work?" An IRA is a personal, tax-sheltered retire­ GAO AUDIT OF LEGISLATIVE TRIBLE HOMEMAKER RETIREMENT ment plan. Any wage earner who is not cur­ rently a participant in any other retirement ACCOUNTS BILL REINTRODUCED plan may establish an IRA. Establishing an IRA is relatively sim­ ple. Almost any bank, savings and loan HON. ELLIOTT H. LEVITAS HON. PAUL S. TRIBLE, JR. association, mutual fund, insurance com­ OF GEORGIA OF VIRGINIA pany, or other financial institution can IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRES;NTATIVES complete the paperwork. There a.re a. wide variety of plans available, but they a.re all Thursday, January 25, 1979 Thursday, January 25, 1979 subject to the same legal restrictions. • Mr. LEVITAS. Mr. Speaker, during Once a person establishes an account, he • Mr. TRIBLE. Mr. Speaker, I am or she can make annual contributions to the 95th Congress, there were nu­ pleased today to reintroduce the Trible merous allegations about misconduct the account up to $1,500 or 15 percent of homemaker retirement bill. During the his or her income, whichever is less. For or abuse of funds by our colleagues in 95th Congress you may recall, a bi­ Federal income tax purposes, contributions Congress. These charges, substantiated partisan group of 150 Members of the to an IRA a.re fully deductible from the or not, have cast a shadow over the House and 10 Members of the Senate gross income of the wage earner. In the long credibility of Congress in general. One cosponsored this bill, making it one of run, this can mean considerable savings for very direct way I know of restoring ,pub­ the more popular pieces of legislation the taxpayer. lic confidence in the honesty ·and in­ introduced. Unfortunately, the Com­ The earnings of an IRA are, likewise, tax­ tegrity of elected officials is to let the mittee on Ways and Means was unable free until retirement. In fa.ct, the owner of sun shine on official office accounts as an IRA does not pay any taxes on the to take final action on the bill because account until retirement when the proceeds provided for in legislation that I plan to work on social security financing and are truced as ordinary income. These tues reintroduce. tax reduction took precedence. How­ a.re generally lower because a retired em­ The Legislative Accounts Audit and ever, the committee did hear testimony ployee will usually receive less income and Control Act, which I will introduce, re­ on the bill and I understand the com­ pay taxes at a lower rate than he or she quires an annual audit by the General mittee intends to consider this and other did while working. In addition, all persons Accounting Office of House Members' legislation this year as par.t of its work 65 or older qualify for a double tax exemp­ and committees' accounts. At the present on the Employee Retirement Income Se­ tion on the Federal income tax return. Under the present law, a homemaker may time, every appropriation made by the curity Act. have an IRA in only two limited situations. Congress for any function of the Fed­ I am optimistic about this bill becom­ First, a. homemaker can own an IRA if he eral Government is subject to an annual ing law during the 96th Congress. Sub­ or she is employed and not participating in audit by the GAO, except for the Con­ stantial public interest in the Trible any other retirement plan. Speclflcally, a gress of the United States. OUr predeces­ homemaker retirement bill has been homemaker is treated as other workers as sors in the Congress established the GAO aroused already through a series of ar­ long as he or she is earning wages. Second, and required annual audits to insure that ticles appearing in national magazines- a homemaker may pa.rtlclpa.te ln an IRA taxpayers' dollars were being properly if his or her spouse is eltgible for an IRA. such as McCall's and Women's Day­ However, participation in this plan is limited spent. national newspapers---5uch as the Chris­ to a maximum of $875 ea.ch year for ea.ch In my view, the congressional exemp­ tian Science Monitor, Los Angeles Times, spouse, instead of the $1,500 celling for tion should never have been granted in Wall Street Journal, and Washington all other accounta. Homemakers, who are January 25, 1979 EXTENSIONS OF REMARKS 1229 not members of one of these two narrow My bill would allow Jim to put away Finally, consider the advantages of an IRA groups, cannot now participate in an IRA. $1,500 in his IRA every year. This would for Louise Parker, the wife of the newspaper Mr. Speaker, many people have recently be possible because the bill allows home­ columnist. My blll would let Louise pay up been asking me a second question: makers to count their spouse's income as to $1,500 per year into her own IRA. At the "How will the Trible homemaker retire­ their own in determining the maximum end of 40 years, her investment of $60,000 ment bill change the present law?" amount they can put in their IRA. In short, would have earned interest of $345,438 to The answer is fairly simple. Jim would have the same opportunity and make the total value of her IRA $405,438. My bill would allow each and every Amer­ be subject to the same limits as any other Her after tax retirement income would be ican homemaker to own an IRA, regardless of homemaker. He would not be penalized for $32,405 per year. whether their spouse participates in an IRA, working. Without the protection of an IRA, her Keogh, corporate, government, union, or Finally, the Trible homemaker retire­ investment would accrue a total value of only other retirement plan. ment bill will also help Donald and Louise $177,872. Her annual after tax retirement in­ Relatively minor changes in the law are Parker, who face an entirely different come would be $19,116. If the law is not needed to allow all homemakers to have an situation. Donald ls a self-employed news­ changed, Louise will lose $13,289 in annual IRA. In fact, there is only one reason why paper columnist. From his work, he earns retirement income. homemakers who want an IRA cannot get an average of $18,000 per year. In March The future experience of these three one today: homemakers are not paid for of 1976, he established an IRA for himself couples with and without a.n IRA can be their work in the home. The law now re­ and contributed $1,500 to it. Last year's ac­ summarized easily. quires earned income before anyone can tion by Congress has forced Donald into a have an IRA. Consequently, homemakers difficult position. Louise ls now eligible to RETIREMENT INCOME WITH AND WITHOUT THE .TRIBLE cannot participate because the law defines have an IRA because she earns no wages HOMEMAKER RETIREMENT BILL their labor as being economically worthless. and because Donald now has an IRA. How­ Mr. Speaker. I think this is an irrational ever, if Louise opens an IRA, Donald must Annual net retirement income after provision in the law which should be elimi­ reduce the annual contributions to his taxes nated. You and I are both well aware of the IRA from $1,500 to $875. Likewise, Louise great worth of the American homemaker's cannot invest more than $875 per year in Annual amount With Without Lost her account. . invested for an IRA an IRA income work. Yet, in spite of our common agreement, retirement for (Trible (present without homemakers cannot own an IRA because Donald and Louise would both be able each of 40 yr bill) law) an IRA they do not draw a. paycheck for their work to contribute up to $1,500 per year to their in the home. individual accounts if my bill became law. (A) Sally Jackson-$750 _____ $18, 482 560 $8, 922 My bill would amend the present law and Dona.Id would not have to limit contribu­ (B) Jim Cram-$1,000 ______23, 625 f9·2, 744 10, 881 allow homemakers to count as their own in­ tions to his own account to permit Louise (C) Louise Parker-$1,500 ___ 32, 405 19, 116 13, 289 come the compensation of their spouse. In to have an IRA. They can both look forward to retirement with security. other words, the bill recognizes the economic This table makes clear that the present value of a homemaker's work. Mr. Speaker, at this point, you are prob­ IRA la.w discriminates against the American Let me give you three examples and com­ ably ready to ask me: homemaker. By enacting my bill, the Con­ pare how a homemaker would fare under my "In dollars and cents, how much is an gress would permit Sally, Jim, Louise, a.nd bill as contrasted with the present law. IRA worth?" millions of other homemakers to have the First, let us consider the situation of Tom The answer to this question will vary same retirement opportunities as other self­ and Sally Jackson. Tom works as a lineman from person to person and from plan to employed workers. No longer wlll home­ for the telephone company. He earns $10,102 plan. However, I can give you some makers face the unenviable dilemma of hav­ per year. The telephone company deducts 5 examples. ing to choose between no retirement protec­ percent of Tom's annual salary as his con­ For purposes of illustration, let me dis­ tion and leaving the home to find a job tribution to the company's retirement plan. cuss what would happen if a homemaker where he or she can acquire pension rights. Sally keeps their apartment in order and invested the same amount of money in Mr. Speaker, there ls one more question attends afternoon classes at the local col­ IRA, tax-sheltered certificates of deposit that should be answered: lege. Under the present law, Sally cannot as contrasted with investment in the same "Does the Trible homemaker retirement have an IRA because she has no earned in­ certificates of deposit without the benefits bill have any spillover benefits for the public come. of an IRA. In the examples that follow, I as a. whole?" If my bill is enacted, Sally would be able will assume that the certificates of deposit The answer is yes. to put away for her retirement $1,500 per earn 7% percent interest, compounded My bill would encourage people to com­ year in her IRA. If Tom earned less than quarterly. mit their money to long-range savings. The $10,000, she would be limited to 15 percent If Sally Jackson, the spouse of the tele­ dollars placed in an IRA would increase the of his income. For example, if Tom earned phone lineman, contributes $750 per year supply of money and the form.ation of pri­ $9,000 per year, Sally could put a maximum to her IRA for 40 years, she will have paid vate capita.I. As a result, interest rates should of $1,350 per year into her account. in a total of $30,000. During that 40 years, lower a.nd, eventually, become more stable. Jennifer Wright, Bill Stark, and Betty Her­ her investment will earn $172,7.19 in interest, Ultimately, the money invested in IRA's man could also establish their own IRA's al­ giving her IRA a total value for her retire­ should stimulate the economy, cut unem­ though none of them earn any wages. Like ment of $202,719. When she retires at the ployment, and reduce dependence on Gov­ Sally, each of their respective spouses ls end o! this 40 years, she will have an annual ernment. covered by a retirement plan at work. How­ net income after taxes o! $18,482. In conclusion, I urge the House to take ever, they no longer need to be concerned speedy action on the Trible homemaker re­ that they cannot get an IRA because their If the law ls not amended and Sally invests tirement bill, H.R. 4649. The time has come spouses cannot. My bill would allow each of the same $750 in the same certificates of de­ to end discrimination a.gs.inst the American them, as well as all other homemakers with­ posit for each of the next 40 years, she will homemaker and to recognize the economic out retirement plans, to own an IRA regard­ set aside the same total amount of her value of this work. American homemakers less of what type of retirement plan their income for retirement, $30,000. However, her should have an equal opportunity to plan spouses have. As with all IRA plans under retirement income will be substantially less. for their retirement.e my bill, their annual IRA contributions Because she has to pay taxes on the annual would be limited to a maximum of $1,500 or interest from the certificates of deposit, her 15 percent of their spouse's annual income, savings will be worth only $88,936 at the end INCENTIVES FOR PEACE IN THE whichever is less. of the 40 years. When she retires, she can MIDDLE EAST Second, compare with me the oppor­ expect to draw only $9,560 in annual net tunities for Jim and Sharon Cram. Jim income after taxes. is a substitute teacher at the local ele­ If the law ls not changed, Sally's annual HON. CHRISTOPHER J. DODD a.!ter tax income will be $8,922 per year less mentary school. His wages average $240 OF CONNECTICUT per month. When he is not teaching, Jim than it could be if my bill became law. In takes care of their 3-year-old son, Jason. short, Sally will receive about one-half of the IN THE HOUSE OF REPRESENTATIVES Sharon ls the family's prime wage earn­ retirement income she would get if she could Thursday, January 25, 1979 er. As the assistant to the city manager, own an IRA. she earns $12,317 per year and partici­ Jim Cram, the substitute school teacher­ • Mr. DODD. Mr. Speaker, I would like pates in the city's retirement system. homemaker would fare no better under the to bring to my colleagues attention an Jim is not eligible to participate in the present law. If he invested $1,000 per year address on American Policy in the Mid­ teacher's retirement system because he ls for each of 40 years in nonsheltered certlfl.­ dle East by Senator FRANK CHURCH de­ a part-time employee. Instead, he owns an cates of deposit, he would receive only IRA but can contribute only 15 percent of livered before the American Friends For $12,744 per year when he retires. If, instead, in his annual wages of $2,300 to the account. he was able to put the same money 1n an Haifa University New York City. Jim would like to put more than this $345 IRA for 40 years, his investment would be In his address, the new· Chairman of in his IRA each year but he cannot. The worth $247,317 and he could depend on an the Senate Foreign Relations Commit­ present law permits homemakers who earn annual after tax income of $23,625. Not tee calls for a new American policy in the wages to invest only 15 percent of their having an IRA would cost Jim $10,881 per Middle East, a policy based on the in­ annual wages in an IRA. year in lost retirement income. centives for peace which the United 1230 EXTENSIONS OF REMARKS January 25, 1979 States can most effectively pursue. Sen­ full autonomy over their own affairs in the tunities for peace have been qua.shed before ator CHURCH rightfully points out that immediate future, while furnishing them a by an assassin's bullet, or simply the fear we have paid heavily for the past wars framework within which they might peace­ of one. It will be recalled that in 1950, in­ fully resolve their remaining differences with tensive secret negotiations took place with in the Middle East and that now we Israel. King Abdulla of Jordan and culminated in should stand prepared to invest gen­ At the same time, Prime Minister Begin the initialing of a non-aggression pact. At erously in the furtherance of peace. We can truthfully point out to the Israelis that the time, it was the most far-reaching docu­ must support those nations which are peace between them and the strongest Arab ment negotiated between Israel and any of sincerely interested in a lasting peace country is the gateway that can lead to its neighbors. But before the agreement was in the region, and equally clearly Sena­ peace throughout the Middle East. signed, Abdulla broke off negotiations as a While Sadat and Begin seem irrevocably tor CHURCH adds, we must not continue result of violent opposition by the other to give financial and political support to committed to establish peace between their Arab governments and the threat of expul­ two countries, it remains to be seen whether sion from the Arab league. In 1951, Abdulla those Middle Eastern countries which the Palestinians, King Hussein, President was assassinated as he left the Al-Aksa Mos­ are uninterested in the efforts of the Assad, and the rulers of Saudi Arabia can que in Jerusalem. Egyptian and the Israeli people to find be persuaded to cooperate in a common ef­ Even Gama.I Abdul Nasser, the self-pro­ a just and lasting peace. fort to convert a bilateral peace into a claimed spokesman for all the Arab coun­ I commend the Senator's thoughtful regional peace for the whole Middle Ea.st. tries, is reported to have expressed a desire The United States is attempting to bring to meet with David Ben-Gurion. According speech to my colleagues, and hope that the other Arab states into the peace proc­ his strategy for peace in the Middle East to Golda Meir, Nasser once said to an inter­ ess, as evidenced by Secretary Vance's recent mediary, "If Ben-Gurion came to talk to me, through incentives will be considered by trip to the capitals of these countries. But, he would return home as a conquering hero. all. thus far, the initial public reactions are not But if I went to him, I would be shot when INCENTIVES FOR PEACE IN THE MIDDLE EAsT good. President Assad has emphatically en­ I came back." It is a great honor to receive the Carmel dorsed the hard line P.L.O. rejection of the At long last, however, the mood has Laureate Award, which takes its name from peace accords. King Hussein has negatively changed. Anwar Sadat was greeted in the the legendary Mount Carmel that overlooks characterized the accords a.s not capable of streets of Cairo as a conquering hero. For the the beautiful City of Haifa. I am told that achieving a Just and lasting peace, while the first -time, the odds in favor of more war in the Prophet Elijah ascended to Heaven from Saudi Government has called the Camp Da­ the Middle East have shifted to odds that this mountain after having made a fiery vid framework not acceptable. favor peace. political speech in front of a great gathering. While relations between Syria and the But advocacy alone may not keep these If my talk tonight appears to be a bit re­ United States have improved slightly in re­ odds favorable. Diplomatic ta.lk may not be strained, I hope you will understand that cent years, we still have limited influence in enough to persuade the other Arab countries I see no reason to take unnecessary chances. Damascus. Our leverage over King Hussein, to cooperate. New incentives for peace should The Prophet Elijah is the symbol of the on the other hand., is considerable. Over the be created. The United States should begin very precepts forming the spiritual corner­ years, the United States has been a staunch now to fashion a policy that will plainly stone of the State of Israel-independence, supporter of the Hashemite Kingdom, and demonstrate to ,the hold-outs that the fruits freedom and rejuvenation. The symbol is now is the time to bring our full weight to of peace can be infinitely more · attractive embellished in the wake of Camp David, and bear upon Jordan to support the Camp Da­ than the spoils of war. on this, the anniversary of the Jewish New vid accords. But even in Amman, full ac­ Having been a partner in hammering out Year. For on this Rosh Ha.shana, I believe count must be taken of another major player the a.,ccords at Camp David, and having t he promise of peace ha.s finally come within in the Middle East drama--Saudi Arabia. agreed to assume the same role in the up­ sigh t of the people of Israel who have so The prospects for peace in the Middle East coming peace ,treaty negotiations between 101: g yearned for it. will be greatly influenced by the decisions in Israel and Egypt, it is time we began to con­ '".1.'he face of the Middle East, distorted for Riyadh, the royal capital of Saudi Arabia. sider the kind of partnership we a.re willing 30 years by destruction and death, could be Through its massive financial aid to Syria to enter, once the treaty ha.s been signed. I va.~tly transformed in the years ahead. Ad­ and Jordan, Saudi Arabia exerts much lever­ believe the United States should then be­ mi ,tedly, the rapid sequence of events dur­ age over the policies of those three coun­ come a partner for an expanded peace, work­ ing the pa.st year, since President Sadat's tries. If it withdraws its support for Sadat, ing in tangible ways to strengthen its foun­ historic trip to Jerusalem, ha.s strained our Saudi Arabia could make it extremely diffi­ dations and to extend its frontiers. emotions. Our initial euphoria la.st Novem­ cult for the Egyptian President to complete Therefore, I call tonight for a new addition ber eventually gave way to deep-seated frus­ the agreement with Israel while withstand­ to American policy in the Middle East, one tration as we witnessed the seeming disin­ ing external opposition from the hard line based upon a strategy that rewards those tegration of an historic opportunity for a Arab states. Likewise, by threatening to cut that work with us to construct and complete settlement with Egypt. And as the long days off economic assistance to Hussein, the the peace, while extracting a. price from those and nights at Camp David wore on with Saudis might block his participation in fur­ who work against us. increasingly gloomy reports, hope seemed to ther talks with Israel. Finally, there is little Henceforth, the United States should be fade. But the determination of President doubt that the absence or availabllity of prepared to invest generously in the further­ Carter and the courage and vision of Prime Saudi funds would also have great impact on ance of peace. We have paid dearly for the Minister Begin and President Sadat in agree­ the attitudes of West Bank and Gaza Strip wars in the Middle Ea.st, and our national in­ ing upon a framework for peace have re­ Palestinians. terest calls out for an end to the conflict newed our faith. Even a Saudi policy of benign indiffer­ there. It is my sincere belief that within a scant ence falls immeasurably short of what we, Let us begin our new partnership with the two months Israel will be signing a peace the de facto protector of Saudi Arabia, initial peacem akers, Israel and Egypt. We treaty with Egypt-removing the most should expect. When this Administration can help Sad.~t with his pressing economic powerful military force in the Arab world successfully proposed furnishing F-15's to problems. Take, for example, Egypt's dwindl­ from its posture of unremitting hostility the Saudis, I opposed the sale on the grounds ing harvests. Israeli's advanced irrigation toward Israel. An Egypt at peace with Israel that F-15's were not the answer to oil price techniques could be of great help to the changes the whole equation in the Middle moderation, nor the appropriate weapon for Egyptians in making th eir deserts bloom as East. For, as President Sadat himself ha.s Saudi defensive needs. the spectacular success of the Negev proves. observed: "Without Egypt, there can be no The Administration Justified the sale in The opportunities are ample for the creat ion peace, and without Egypt, there can be no terms of the immense importance of Saudi of Joint projects for water desalination, rec· wa.r." Arabia in promoting a moderate and respon­ lamation, and solar energy. It would be a fruitless exercise to try to sible course, both in Middle East regional Similarly, we should declare our willing­ quantify the concessions made by each side development, including peacemaking, and ness to extend the same measure of support at Camp David, or to determine who came international economic and financial affairs. to Jordan and Syria, if and when they choose out "ahead." When history is finally writ­ Tonight, I remind the Administration of its to participate in the building of a. regional ten, it will be said that both President own words. It is imperative that we make peace. once they join in, they can expect our Sadat and Prime Minister Begin felt the clear to the Saudi Government that our stra­ help in alleviating the suffering and in lift· weight of the pa.st and the responsibility of tegic concerns are mutual, that our inter­ ing the living standards of their people. the future. Neither flinched, despite the ests are intertwined and, in the last anal­ The other side of such a new policy should heavy pressures upon them, thus bearing out ysis, it is ·the American security umbrella be made equally clear. If Assad turns his back Shakespeare's perception that "courage which shields the kingdom from potential on the establishment of a "secure and recog­ mounteth with occasion." Iraqi or Soviet aggression. In such circum­ nized" border on the Golan Heights; 1! he President Sadat can now promise his peo­ stances, we have every right to expect the refuses to withdraw his forces from Lebanon, ple that within two or three years, Egypt full and forthcoming cooperation of Saudi or to cooperate in the restoration of good will regain every inch of the Sinai without Arabia in our quest for a regional peace! order in that tormented land, then I see no sacrificing the life of one more Egyptian Ultimately, to be genuine and la.sting, such reason why the United States should con­ soldier. He can also honestly claim that he a regional peace cannot rest for long upon tinue to supply him with $90 million a year! ha.s remained faithful to the larger Pan-Arab treaties or individual leaders. It is all too And the same goes for Jordan, where the concerns by conferring on the Palestinians fresh in Israeli minds that historical oppor- United States, over the years, has provided January 25, 1979 EXTENSIONS OF REMARKS 1231 King Hussein-and his grandfather before How many times in the past few years will not come, because of the strong evidence him-with t he princely sum of $1.5 blllion. have we read about crimes committed by against him. President Sadat h as called on Hussein to persons on bail for another offense? The congressman has enjoyed 24 years on "shoulder his responsibilities" on the West the public payroll and he owes much to his Bank, within the framework of the Camp When the Department of Justice funded people for -it. He has been a speaker at David accords. If he now refuses to do this, "Sting" operations throughout the Na­ NAACP gatherings, and a voice that called thus complicating the movement toward a tion, many of those arrested were con­ for better things for his race. . . . But this reconciliation with the Palestinians, then let victed felons awaiting trial. I cannot help was in the days, before the shadow of dis­ him look elsewhere for his financial support but wonder how a society can generate honestly descended upon his shoulders, and in the future. Why should we continue to respect for law when persons who have ca.st suspicion on everything that he has pick up the tab! a history of ignoring it reappear on the touched. This, already has hurt the chances Let us hope t hat such a policy is put into streets within hours of their arrest? How of advancement of other black people in his effect, and that it proves an effective instru­ area. ment in widening the boundaries of peace in too can we expect law-abiding citizens We have come a long way, but we still the Middle East. Still, Israel will be con­ to report crimes when they know only too can't afford to have the reputation of sup­ fronted for years to come with those Arab well that the person they accuse will soon porting illegal doing. The eyes of leaders extremists bent upon the destruction of the be free to retaliate? It is a situation still watch the development o! the Negro, Jewish state. Unfortunately, savage terrorist where society becomes a victim of itself, and always there ls the suspicion that we attacks by such fanatics will not soon dis­ where its desire to give the potential are not ready to take over leadership mantels appear. Thus, it will be necessary for Israel criminal the benefit of every doubt back­ in our cities and states. This means we must to maintain her preparedness, and for the fires in disaster. The irony of it all is that obey the law rather than the majority race, United States to see to it that h er military and this means in the same sense, that we capab111ties remain sufficient. we who make the laws are not the ones can no longer afford Congressman Diggs. Let me close with a few words about the most frequently victimized by them. The We consider the three year sentence given institution you support, Haifa University. In Bail Reform Act of 1966, as presently ap­ by the Judge most lenient. There ls always a span of eight short years, this university plied, is a point in fact. the danger of too much leniency encourag­ has emerged as a major center of higher Behind my motivation is a belief that ing others to do likewise in viola.ting the learning for the people of northern Israel. law.e It is a unique university, vibrant, young, the Federal courts now have the inherent and bristling with new social experiments. constitutional right to consider the safety Haifa University has been instrumental in of the community and of future witnesses JACK PORT TO RETIRE furthering two of the most cherished goals while setting bail. Many of them do, us­ o! the Jewish tradition: education and ing the label of "community ties" to jus­ equality I commend all of you tonight, the tify their action. This view has, in fact, HON. GEORGE MILLER American Friends of Haifa University, !or been advocated by the Court of Appeals OF CALIFORNIA helping the people of Israel to realize an­ other part of their impossible dream. For the for the Sixth Judicial Circuit in United IN THE HOUSE OF REPRESENTATIVES States Wind, 527 F. 2d 672 <1975). impossible may yet be the attainable. A great v. Thursday, January 25, 1979 Jewish historian, Cecil Roth, looked toward a However, the Wind case, which has not future for the Middle East which is no longer been overturned, is also not yet universal • Mr. MILLER of California. Mr. Speak­ beyond the reach of our years. law. It seems only appropriate, then, to er, an outstanding public servant, Jack "Again," he wrote, "as in the days of Solo­ codify what I believe to be sound juris­ Port, will soon retire as the executive mon, the area. seemed about to become a prudence. I urge that this bill be seri­ secretary for the Contra Costa Water bridge between East and West, drawing and Agency. giving inspiration in both directions. In the ously considered and acted upon.• changed world in the second half of the Since 1958, Jack has served as the first Twentieth Century, this could well be pa.rt and only executive secretary for the o! Israel's function and mission DIGGS STILL SHOULD RESIGN agency, the water arm of the county On this joyous occasion marking both the board of supervisors. In that capacity, Jewish New Year and the beginning o! the he served as liaison between the board road to peace, I would like to extend my HON. NEWTON LEROY GINGRICH and all public and private individuals heartfelt congratulations to the courageous OF GEORGIA and organizations interested in protect­ people of Israel and to Jewry a.round the IN THE HOUSE OF REPRESENTATIVES world. ing and enhancing the economic and On this Rosh Hashana, let us all rejoice Thursday, January 25, 1979 water-oriented resources of the Sacra­ in the beginning of a new year, a year that e Mr. GINGRICH, Mr. Speaker, re­ mento-San Joaquin Delta and San will continue to affirm the Jewish sanctity of cently, an editorial appeared in the At­ Francisco Bay. peace, the indivisibility of freedom, and the lanta. Daily World expressing its support In carrying out his responsibilities, he brotherhood of man.e of the forced resignation of Congress­ worked with the late Congressman John man of Michigan. The F. Baldwin, the late Senator George Mil­ Atlanta Daily World is a black news­ ler, Jr., former Assemblyman James W. B.All, REFORM ACT SHOULD BE paper. Dent, Senator John A. Nejedly and As­ AMENDED A quote from that article reads: semblyman Daniel E. Boatwright and John T. Knox, and numerous consult­ Apparently Congressman Charles Diggs HON. ROBERT McCLORY has come to the end of his career as a law ants and legal experts in the field of water, most notably William J. O'Con­ OF ILLINOIS maker from Detroit, and for the good of his race, and the future of black elected officials, nell, Jr. and Walter M. Gleason. It has IN THE HOUSE OF REPRESENTATIVES he should resign. also been my own pleasure to work very Thursday, January 25, 1979 I urge my colleagues to read this edi­ constructively with Jack for many years. e Mr. McCLORY. Mr. Speaker, today I torial, printed Sunday, November 26, Starting in 1964, when the State de­ will introduce legislation aimed at 1978. The text of the article is inserted partment of water resources publicly amending the Bail Reform Act of 1966 in below: proposed to build and use the peripheral such a way as to help provide added secu­ DIGGS STILL SHOULD RESIGN canal as the means of increasing trans­ rity to our communities when potential Apparently Congressman Charles Diggs has fer of northern California water around criminals are apprehended. Under cur­ come to the end of his career as a law maker the delta to southern california, Jack rent law, a Federal judge is able only to from Detroit, and for the good of his race, successfully spearheaded the fight to pre­ consider the probability that ,a criminal and the future of black elected officials, he vent the construction of this dangerous defendant will flee the jurisdiction when should resign. facility with its imminent threat to the setting bail. Whatever record he may Congressman Diggs has now been con­ integrity of the delta and the b,ay. have for prior arrests and convictions is victed, and sentenced to a term in prison. In this work, he appeared before As a convicted felon, he can no longer serve not subject to consideration. I believe his race as a leader nor his constituents in numerous Federal and State legislative this state of affairs has proven to be a general. committees pointing out the dangers and mockery of our criminal justice system And although he has been elected to office the harm that the canal would wreak and must be corrected. I introduced this again, remaining there after his conviction upon the bay-delta system. In recent bill in 1977 along with 24 cosponsors and could serve no purpose, unless there was a years, Jack's efforts centered on Senate nothing was done. I hope we can do bet­ strong chance or his being vindicated. bill 346, which passage would have rep­ ter this time. To most observers, however, vindication resented the first step toward the real- 1232 EXTENSIONS OF REMARKS January 25, 1979 ization of the peripheral canal. His U.S. exports to the Community. On the recently said he intends to send it to the Hill efforts on behalf of the county were U.S. side the European Community is in the coming weeks. critical in the defeat of this unwise legis­ dissatisfied with the tariff offers on U.S. But the terse European reaction to the Strauss request appears certain to remain lation twice in the last State legislative imports of benzenoid chemicals which "no dice" for as long as the president's trade session. are presently subject to the high duty representative does not instruct his negotia­ In addition to these duties, Jack served incidence of the American selling price­ tors, led by Ambassador Alonzo McDonald in as one of the county's expert witnesses in ASP-valuation method. The Uni·ted Geneva, to soften the administration's tough the famous landmark decision 1379 of States is agreeing to give up the ASP position on chemical imports. the State water resources control valuation system if the United States is According to EEC negotiators, who had a board, commonly called the delta deci­ adequately compensated for such reduc­ "disappointing" meeting here with McDonald tions in chemical tariffs. last weekend, the new conflict centers on the sion. His testimony, along with other American selllng price, a system which they agency witnesses, convinced the State The attempt by the European Com­ say has been used by Washington to artifi­ water resources control board that the munity to lay the blame on Bob Strauss cially increase the price of certain chemicals beneficial uses of the delta, both eco­ for its own hard line of the extent of imported into the U.S. to protect domestic nomic and environmental, came first, tariff reductions just would not work. manufacturers. ahead of the demand for water in San The Post reporter apparently was not In response to other agreements reached Joaquin Valley and southern California, briefed too well since he reported the in the MTN, the ASP is to be phased out, but and that these uses had to be protected United States has announced its inten­ disgruntled EEC officials complain that Wash­ ington now has revealed that it intends to before more water could be exported out tion to increase rates of duty on a whole replace it by applying higher customs duties of the delta to the southern areas. range of chemicals imported into the on a whole range of chemicals, even includ­ From 1958 on, Jack represented the United States. ing those not protected by the ASP mech­ county at several Federal and State hear­ We have known all along that the anism. ings and spoke out against the discharge European negotiators are skilled, and This has come as a hard blow to European of the San Luis drain into the delta. As a particuarlly so at the end of the negotia­ negotiators, one of whom bitterly complained result, the State and Federal Govern­ tion when the United States is placed that "the Americans are trying to pull a fast ments have conducted numerous studies in the position of wanting to conclude one." Another griped that Washington "is concerning the selection of a possible ter­ the negotiations. However, they seemed simply not playing it straight." The Haferkamp letter claimed that the minus for the drain. to have met their match in Bob Strauss, net impact of the move would be to raise In addition to his water duties, Jack, and are attempting to take their case to U.S. tariff protection on chemicals from 12.6 under the direction of former Public the press. percent "to rates of 20 percent or more be­ Works Director Victor W. Sauer and The European Communities and the fore falling to 13.5 percent by 1987."e present Public Works Director Vernon L. United States have a lot to gain from a Cline has been responsible for countywide real balanced package. general planning for sewerage, which, I hope that our efforts will continue FINANCIAL SUPPORT FOR THE among his duties included the adminis­ in this direction. UNITED NATIONS FUND FOR tration of five county sanitation districts The article follows: DRUG ABUSE governed by the board of supervisors and HARD-LINE U.S. STAND REVEALED IN TRADE has been instrumental in realizing the TALKS HON. BENJAM·IN A. GILMAN subregional facility now under construc­ (By John Robinson) · OF NEW YORK tion in the Pittsburg, Antioch, and west BRUSSELS, Jan. 24.-Two confidential Pittsburg area, and the subregional facil­ memos exchanged between top United States IN THE HOUSE OF REPRESENTATIVES ity in the Oakley-Bethel Island area. and Europe Economic Community trade offi­ Thursday, January 25, 1979 Finally, over the years, he has been di­ cials, obtained here exclusively by the Wash­ rectly responsible for countywide plan­ ington Post, dramatically reveal the precari­ • Mr. GILMAN. Mr. Speaker, I would ning for solid waste disposal. ous state of transatlantic efforts to reach a like to commend Ambassador Andrew Mr. Speaker, Jack's commitment to the European-American trade compromise per­ Young, our chief spokesman to the people of Contra Costa County has been mitting a successful end to the multilateral United Nations, for implementing my trade negotiations under way in Geneva. suggestion that the State Department total. His work there, since 1952, person­ The EEC letter, sent late last week to ifies the very best kind of public service. Robert Strauss, President Carter's special organize a meeting of nation members On behalf of the people of our county, trade representative, reveals a new hard-line of the United Nations to help support the I want to congratulate Jack on his retire­ stance being adopted by Washington in cru­ United Nations Fund for Drug Abuse ment, and to express our gratitude to cial trade talks with the Europeans. This has Control-UNFDAC-whose budget is de­ him, his wife Jean, and their family.• created "a situation gravely prejudicial to a pendent upon voluntary contributions successful conclusion" of the MTN, claimed from the international community and the author of the letter, chief EEC negotiator from the private sector. Representatives UNITED STATES EUROPEAN Wilhelm Haferkamp. from approximately 20 nations attended But in a secret memo recently received the donors meeting at the U.S. Mis­ COMMUNITY TARIFF TALKS here, Strauss stressed the problems he ls en­ countering in his attempts to woo Congress sion to the United Nations on No­ into accepting the emerging MTN liberaliza­ vember 9, 1978. At that meeting, the HON. CHARLES A. VANIK tion package. Strauss' letter appears to sug­ gentleman from New York, Mr. WOLFF OF OHIO gest that his task could well prove impossible and I, along with Ambassador Young; IN THE HOUSE OF REPRESENTATIVES unless the EEC grants new trade concessions Mathea Falco, the State Department's Thursday, January 25, 1979 favoring U.S. exporters. This the EEC clearly Assistant Secretary-designate for Nar­ will not do in view of what European officials cotics Matters; Lee Dogoloff; Associate • Mr. VANIK. Mr. Speaker, I ask unani­ see as a new bout of American protectionism Director of the White House Drug Abuse mous consent to include an article from which has crept into the trade negotiations. Policy; George Davidson, United Na­ the Washington Post of January 25, 1979, According to the Haferkamp letter, the major focus of the European complaint ls the tions Under Secretary for Administra­ by John Robinson entitled "Hard-Line tion and Management and Dr. Bror U.S. Stand Revealed in Trade Talks." recently announced American intention to raise tariffs on a whole range of chemicals Rexed, Executive Director of UNFDAC, The news, of course, is welcome, if imported into the U.S. The EEC letter said discussed the work of UNFDAC and the true. However, since it is based on an the administration's move provoked "a back­ need for nations of the international exchange of correspondence between the ground of shock" against which European community to contribute to the U.N. U.S. Special Trade Representative Rob­ negotiators cannot respond positively to the Fund or to increase their contributions ert Strauss and the European Commu­ demands outlined by Strauss. to the Fund. nities Vice President Wilhelm Hafer­ The central request in the Strauss letter kamp mysteriously obtained exclusively is for a reduction of EEC tariffs on paper As I have noted before: by the Post reporter, it bears examining. products in an effort to maintain the Amer­ It is a myth to think that the drug prob­ ican paper industry's competitive position lem is a problem unique to the United We have been following these negotia­ on the markets of the nine-nation EEC. States. Quite to the contrary, drug abuse tions closely. What is at issue here is the Strauss warned in his letter that such an is a global problem for both heroin user unwillingness of the European Commu­ EEC gesture "is absolutely essential for me nations and heroin producer nations ... nity to off er meaningful tariff reduction politically" In his struggle to get Congress to for developed nations and for the less de­ on imports of paper products, important agree to the trade package. President Carter veloped nations" ... January 25, 1979 EXTENSIONS OF REMARKS 1233 The drug problem is global, calling for pass resolutions. The time to translate chase a sophisticated Jet aircraft. The inter­ immediate, concerted action of the entire our well intentioned declarations and national community can and must do international community to combat the resolutions is at hand. If we truly intend better . . . UNFDAC urgently needs sub­ wage war on drug abuse, then nations stantial funding-substantially more thail highly organized and heavily ·financed to 6 million dollars if it is to effectively fulfill international criminal syndicates whose of the international community must the mission we have assigned to it. illicit drug trafficking tentacles reach realize that it is in their interest to exert We have heard Dr. Rexed's report--actually into every region of the world, undermin­ concerted action against a common the work of UNFDAC is just beginning to be ing the health of all minkind and cor­ enemy-the international criminal felt and just beginning to be productive. rupting the political, economic and so- syndicates that peddle their deadly It is a myth to think tha.t the drug prob­ cial order of every society. · drugs throughout the world, irreparably lem is a problem unique to the United It is appalling that in 1978 only 30 maiming the health of our citizens and States. Quite to the contrary, drug abuse ls corrupting our societies. a global problem for both heroin user na­ nations or approximately 20 percent of tions and heroin producer nations . . . for the 151 nation members of the United We must fight this common enemy by developed nations and for the less developed Nations contributed or pledged the pal­ contributing to the U.N. Fund, by pooling nations. try sum of $7,210,000-an amount that our resources, technology, personnel, and Drug a.buse has reached epidemic propor­ would not even purchase a sophisticated expertise, by coordinating our efforts to tions throughout the world and requires the jet aircraft. It is distressing that the interdict narcotics traffickers, eradicat­ concerted action by the entire international United Nations General Assembly re­ ing the illicit production of drugs at their community. No nation, regardless of its po­ gards the drug problem as a low priority source, reducing the demand for drug litical power, socio-economic status or ideol­ abuse, and treating and rehabilitating ogy is immune from the devastating and in its deliberations. debilitating effects that drug abuse causes Last July, a foreign ministerial confer­ those who have fallen victim to the dead­ to its citl.zens or from the drug merchants ence on European cooperation in the ly dependence upon drugs. If we do not whose highly organized and sophisticated struggle against drug abuse and illicit intensify our efforts at waging war on operations reach into every corner of the traffie-the Pompidou Initiative GrouP­ drug abuse by translating our flowery world undermining the political, economic, met in Stockholm, Sweden to study words into joint constructive action, socia.1 and moral values of that nation's so­ measures that have been taken to deal then the international community will ciety. truly have lost the war and our societies The statistics on drug addiction are alarm­ with this problem. That conference ing: noted that in most European countries will reel under the debilitating effects of Thailand, a major heroin producer, reports "the drug problem has not improved but a drugged citizenry. a drug addiction population estimated be­ is worsening." According to one report: Mr. Speaker, in an effort to inform my tween 300,000 and 600,000; The foreign mlnlSters are convinced that colleagues regarding the financial plight Iran reports an estimated 400,000 addicts; the fight against drug abuse ls a task for the of UNFDAC, I am inserting at this point Mex.1c~50,000 addicts; whole international community and that in the record, the complete text of my Bunna reports 20,000 individuals that are these conditions ought to be given a higher statement at the donors meeting on No­ registered for treatment which international priority within the framework of the regular vember 9, 1978: health officials state ls many times higher budget of the United Nations according to than this registered figure; Resolution No. 8 taken by the Commission REMARKS BY REP. BENJAMIN A. On.MAN AT THE UNITED STATES MISSION TO THE UNITED West Germany estimates that 40,000 of its on Narcotic Drugs at its Fifth Special Ses­ citizens are drug addicts; and sion in February 1978 and approved by the NATIONS Economic and Social Council by taking note In Canada, heroin trafficking represents Thank you. Ambassador Young, Secretary the fifth largest industry in British Colum­ of the Commission's Report at its first regu­ Falco, Dr. Rexed, Mr. Dogoloff, my colleague lar session in 1978. bia grossing, according to Canadian law en­ Congressman Wolff, distinguished panelists forcement officials, at least $255 million a Mr. Speaker, 1n February of 1978, I and guests: year and requiring over 365 pounds of heroin presented a paper at the Fifth Special I welcome this opportunity to participate to support Vancouver's addict population. Session of the Commission on Narcotic at this donors meeting and wish to thank And these statistics do not include the Ambassador Young for implementing my immense trafficking in marihuana and co­ Drugs urging members of the interna­ suggestion that the State Department orga­ tional community to intensify their caine, the bllllons of dollars that these 1llic1t nize a meeting to help support the work of drugs produce for the coffers of the inter­ efforts to interdict narcotics trafficking, UNFDAC. national criminal syndicates, or the amount to eradicate the illicit production of I am pleased that the Administration and of 1111c1t drugs that have been seized by drug drug at their source, to educate citizens the White House ls so ably represented here la.w enforcement officials of the United regarding the dangers of drug abuse, to by Secretary-designate Mathea Falco and States, Canada, Western Europe and the So­ treat and rehabilitate individuals who by Mr. Lee Dogoloff of the White House Drug viet Union. Colombian law enforcement offi­ have become dependent upon or addicted Abuse Policy Staff. I hope that this donors cials are now concerned that the 2 b1llion to narcotics, and to urge nations to con­ meeting wlll be the first in a series of meet­ dollars of marlhuana and cocaine that ls tribute to UNFDAC or, 1n the alterna­ ings to help rai-se the consciousness of na­ being trafficked through that nation ls hav­ tive, to increase their contributions to tions of the international community con­ ing an injurious effect on its own citizens cerning the necessity to contribute to the and upon that nation's economy. The Chief the U.N. Fund. UN Fund. of the Egyptian Anti-Narcotics Administra­ Yet at the U.N. General Assembly, The narcotics problem is a world wide tion, General Sami Assad Farag, recently drug abuse prevention and control is problem. Its resolution necessitates a world wrote me that Egypt may soon become an given below average priority. On Novem­ wide effort. If the "war" on drug abuse is 111iclt opium producing nation. Heroin addic­ ber 28, 1978, the U.S. representative to going to be won, then It ts imperative that tion in Canada and Western Europe has the U.N. General Assembly, the distin­ the member nations of the United Nations reached such epidemic proportions that pool their expertise, personnel, equipment Canadian, British, French, West German, guished Senator from Connecticut