7200 EXTENSIONS OF REMARKS April 9, 1981 EXTENSIONS OF REMARKS HOW THE FARM CREDIT structive credit and closely related services As a consequence, the Production Credit AMENDMENTS WILL HELP AG­ to them, their cooperatives, and to selected Associations were established in RICULTURAL BANKS farm-related businesses necessary for effi­ 1933 to distribute the discounted funds to cient farm operations." farmers. But even though PCAs were estab­ In some cases, serving the credit needs of lished to fill the void left by the commercial agriculture means channeling some of the banking industry, the FICB authority to HON. ED JONES funds through commercial banks. And some provide a source of credit to other financial OF TENNESSEE of the changes brought about by the 1980 institutions significantly committed to fi­ IN THE HOUSE OF REPRESENTATIVES Amendments to the Farm Credit Act of nancing agriculture remained intact. Thursday, April 9, 1981 1971 will make it easier for the System to As time went on, the banking industry serve agriculture through your institutions. showed only sporadic interest in accessing • Mr. JONES of Tennessee. Mr. With that understanding let's look at how the discount privilege. Demand on the Speaker, the Farm Credit Act Amend­ the Farm Credit System and agricultural system was heavy when money was tight ments of 1980 was one of the major banks can work together to help agricul­ and bank loan-to-deposit ratios were tempo­ legislative efforts in the agricultural ture, since helping agriculture is our rarily high. This, of course, stressed the area that was approved by the House common objective. You're here today to de­ Farm Credit System's funding mechanisms Agriculture Committee and the Con­ termine what this means to your banks in at their most vulnerable times. This stress gress last year. On March 24, Gover­ light of the recently passed Farm Credit during vulnerable periods forced the Farm nor Donald E. Wilkinson of the Farm Amendment ... and that's what I'm going Credit System to develop and administer to talk about. certain requirements for access to the FICB Credit Administration spoke to the FCA is now in the early stages of imple­ discount window. Las Vegas Convention of the Inde­ menting Public Law 96-592. By early stages, I am neither pointing a finger at commer­ pendent Bankers Association of Amer­ I mean that we have drafted our regulations cial banks nor condoning the past actions of ica, on the subject of "How the Farm and have presented the more complex and the Farm Credit System. Rather, my inten­ Credit Amendments Will Help Agricul­ controversial sections to our Federal Farm tion is to review the past in an effort to tural Banks." The text of Governor Credit Board at its last meeting in early shed some light on the circumstances in Wilkinson's remarks follows: February. At the Federal Board's direction, which the agricultural banks and the Farm How THE FARM CREDIT .AMENDMENTS WILL we have now sent copies of the regulations Credit System found themselves last year. HELP AGRICULTURAL BANKS to the 37 banks and boards of the Farm Returning to the OFI aspect of the 1980 Credit System and to other "interested par­ Amendments, the law sets forth four condi­ I appreciate the opportunity to speak ties" for comment. The IBAA is one of tions for granting commercial banks access before you today. When Tom Bolger, your those "interested parties" and we've re­ to the FICB discount window. president invited me to talk before this con­ ceived some constructive comments from First, the commercial bank or OFI must vention, I accepted gladly, because our orga­ your leadership regarding certain areas be significantly involved in farm lending. nizations have a mutual concern . . . the which they want us to take into considera­ Second, the bank must have a continuing concern of providing credit to agriculture. tion as the regulations are developed and fi­ It's the primary business of the Farm Credit need for a supplementary source of funds to nalized. We expect and appreciate this kind meet the needs of its agricultural borrowers. System and an important portion of your of participation. And although we may have business. Third, the bank must have only limited During our recent effort to amend and to draw lines in some areas because of the access to regional or national capital mar­ update the Farm Credit Act of 1971, your limitations of our authority or for some kets. leadership demonstrated confidence and other reason, I want you to know that we And fourth, the bank may not use the pragmatism in recognizing that the legisla­ are in continuing communication with your FICB services to expand financing to per­ tion was moving to enactment and in main­ leaders. sons or for purposes other than those au­ taining a position that was in the best inter­ At this point, I would like to set the stage thorized in the 1971 Act. est of your membership. We in the Farm by reviewing the specifics of the key amend­ The basic thrust of the regulations will be Credit Administration and the System rec­ ments to the 1971 Act affecting the working to: (1) assure equitable OFI access; (2) pro­ ognize and applaud their fine efforts on relationship between IBAA and the Farm tect the System against misuse; and (3) your behalf. Credit System. eliminate inconsistencies among the dis­ During the year and a half that we The OFI provision is the amendment that tricts. worked on our legislative package, we had to you are most interested in. It is one of the Now let's look at the provisions of the deal with a lot of confusion, misunderstand­ major modifications to the Farm Credit Act draft OFI regulations. Under the draft regu­ ing and misinterpretation of the 1980 Farm of 1971, because it significantly expands the lations, OFI eligibility criteria are clearly Credit Act Amendments. Quite a bit of mis­ access of other financial institutions to the defined, as contrasted with the current reg­ information was published. The leadership Federal Intermediate Credit Bank ulations in which the criteria are general, of your organization met with us on numer­ discount window. nonspecific, and lend themselves to either a ous occasions. They raised questions and ex­ I'm sure you recall the debate that cen­ very broad or very narrow interpretation pected straightforward answers. And we did tered on this amendment. Opponents ... depending on your point of view. Oppo­ the same with them. That's the kind of argued that the amendment restricted nents to the new law have argued that the working relationship we developed. And I'm rather than expanded discount window old law and regulations should have been re­ going to adhere to those ground rules in my access. Actually, what this amendment does tained, and the Farm Credit System forced comments to you today. for the first time is define what the access to open the FICB discount window to all My assignment is to talk about "How the will be. commercial banks. Farm Credit Amendments Will Help Agri­ Let's take a step back in FICB history to However, precedents have established a cultural Banks." And, since we have a see what the precedents were that estab­ narrow interpretation of the old law. The straightforward relationship, there is one lished the pattern for discount window 1980 amendment guarantees access to the point that I want to make here, right in the access before the 1980 Amendments. FICB discount window by qualified agricul­ beginning. Actually, the FICBs were originally char­ tural lenders, and new regulations are The business of the Farm Credit System is tered in 1923 to discount agricultural paper needed to more specifically define that not to help agricultural banks. for commercial banks and other lending in­ access. Its business . . . its only business . . . and stitutions

e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. April 9, 1981 EXTENSIONS OF REMARKS 7201 3. Restricting access to the FICB discount management problem to be constantly tool­ success in furthering the interests of Ameri­ window to banks or affiliates which have ing up and then tooling down as credit can agriculture.e only limited access to national or regional demand fluctuated. money markets. Closely related to this problem is the im- In addition, a new section in the proposed portance of protecting the Farm Credit Sys­ CONGRESSMAN GREEN INTRO­ regulations establishes appeal rights for re- tern's credibility in the money markets. It is jected applicants. The Farm Credit Admin- a reputation earned over a more than 60- DUCES RESOLUTION FOR DR. istration, the Federal regulatory Agency for year period. And although the System has SEYMON GLUZMAN the System, will have responsibility for re- been unfairly criticized for its "unlimited" viewing appealed decisions on a case-by-case access to the money markets, it has not basis. taken its reputation as a good market citi- HON. BILL GREEN We believe this eligibility section is a very . zen lightly. OF NEW YORK important part of the draft regulations, be- The System voluntarily coordinates its IN THE HOUSE OF REPRESENTATIVES cause it helps fulfill the congressional man- bond sales with the U.S. Treasury, the Fed­ date to open the FICB discount window to eral Reserve, and with leading securities Thursday, April 9, 1981 qualified agricultural lenders. We also feel dealers to assure that every issue of System that this will satisfy those who have felt securities will go through and fit into the e Mr. GREEN. Mr. Speaker, today I that access to the discount window was arbi- overall monetary picture. For example, the once again introduce legislation im­ trarily determined in the past. System gives consideration to whether an- ploring the Soviet Union to release Dr. Since the text of the complete OFI regula- other organization, such as the Federal Na­ Seymon Gluzman. I am pleased that tions runs about 20 pages, we cannot get tional Mortgage Association, is going into Congressmen BIAGGI, BINGHAM, KEMP, into a detailed discussion of all the sections the market with any unusual demand. If in my allotted time. This we will do this the Farm Credit System was to enter the and 75 other Members have joined me afternoon as we meet with your Agricultur- market with a bond sale at the same time, it in this effort. This clearly shows the al Division. might be disadvantageous to both. high level of concern for Dr. Gluzman. However, I do wish to mention another The bottom line is that we must not sur- Nine years ago, Dr. Gluzman, a significant provision of the OFI amendment prise or shock the investment community. Soviet psychiatrist, was imprisoned in which is favorable to commercial banks. Any increase in credit demand resulting the U.S.S.R. after refusing to cooper­ The provision to which I refer will level the from factors such as OFI discounting must playing field by granting OFis the authori- be absorbed gradually. The investment com­ ate with the KGB to certify human ty to discount with the FICB for the same munity has been able to accommodate agri­ rights and political activists as mental­ types of loans that PCAs are authorized to culture's credit needs, and it will continue to ly ill. His story is one 'of tremendous make. The current authority restricts OFis do so as long as we don't overburden or con­ courage and conviction. After his im­ to discounting loans for agricultural pur- fuse it. prisonment, Gluzman and human poses only, whereas, PCAs have broader au- I have been concentrating on the new OFI rights activist Vladimir Bukovsky thority to make loans to farm related busi- authority, but there are some in this audi­ wrote a guide for fellow dissidents de­ nesses, rural residents, and aquatic produc- ence and in your industry who wish me to scribing techniques to prevent being ers. In addition, PCAs have the authority to address another mechanism agricultural make loans for the "other needs" of agricul- banks may want to pursue in meeting their classified as psychotic by government tural and aquatic producers. growing credit demands. This relates to par- psychiatrists, and smuggled it to the Now that I have touched briefly on the ticipation agreements with PCAs. These outside world. Gluzman continuously basic provisions of the OFI amendment, the agreements are similar to an overline ar­ agitated for freedom while in prison, next question in your minds must be- rangement between a commercial bank and going on self-imposed hunger strikes "What is the timetable for implementa- its correspondent banks. in protest of cruel treatment of his tion?" PCA participations with commercial fellow prisoners. As a result, he was The implementation of these regulations banks have worked very well in some areas. harshly treated by prison guards, and is not going to happen in the next 2 months In others, they have not been an unquali­ or 4 months or even 6 months. FCA must fied success. Participations have worked was kept in solitary confinement in a adhere to certain legal procedural require- well when PCA management and commer­ punishment cell. ments and the draft regulations are subject cial bank management have put aside old Dr. Gluzman served out his 7-year to congressional review. We have developed prejudices. Unfortunately, publicity about prison term and is currently in the a timetable and, coincidentally, today- the less successful efforts apparently have second year of his exile in Siberia, March 24th-is the deadline for initial com- led to considerable misunderstanding of the scheduled to be released in 13 months. ments on the draft regulations from organi- program. FICBs are now taking positive Despite his remarkable skills in psy­ zations such as the !BAA as well as the action by examining the PCA participation Farm Credit districts. Of course, there will programs and amending them when possible chiatry, Dr. Gluzman is denied the be additional opportunities for comment to improve PCA receptivity. I encourage you right to practice his profession and is when the proposed regulations go public in to take a look at the program for yourself working as a dispatcher. Recently, Dr. the Federal Register. and then decide whether or not it can work Gluzman wrote a letter which found The next step will be presentation to the for you. its way to the West-a letter which Federal Farm Credit Board in early April The 1980 Amendments provide for a liber­ epitomizes why we in Congress must for tentative approval. The congressional alization of this program, which we think continue to show our support for him review period will run through the end of will benefit both farmers and small country and other Soviet human rights activ­ July. The regulations will be then published banks. One of the changes involves the issu­ as proposals in the Federal Register. This is ance of participation certificates in conjunc­ ists. Dr. Gluzman wrote, "Without let­ followed by a traditional 60-day public com- tion with a loan. The certificates will be ters (from the West) my life would be ment period. At best, the regulations will issued directly to the commercial bank in­ meaningless." He explains that his not come back to the Federal Board for stead of to the borrower. This makes the kolhoz is "without life," and that he final adoption until early December. So, it PCA an invisible third party in the transac­ finds his inspiration to work for fellow will probably be early 1982 before the OFI tion, something commercial banks consider dissidents from his knowledge of activ­ regulations can be implemented. This as- important. ities in the West. sumes nothing unforeseen happens. As I mentioned earlier, we have been I promised earlier that my comments to working closely with your leadership in the Concern for Dr. Gluzman in the U.S. you today would be straightforward. I development of the regulations. And this medical community is high. Last May, would not be meeting that commitment if I afternoon Mr. Larry Edwards, Associate at the annual meeting of the Ameri­ failed to mention a few Farm Credit System Deputy Governor with our Office of Super­ can Psychiatric Association, he was concerns over expanding OFI access to the vision, and our General Counsel, Mr. Fred awarded the APA's highest honor, the FICB discount window. Medero, and I will meet with your organiza- title of Distinguished Fellowship. Sev­ The FICBs will have problems in main- tion's Agricultural Division. eral thousand psychiatrists, mental taining adequate staff to handle the OFI re- Again we appreciate the constructive, co­ quests unless some mechanism for respond- operative relationship evidenced by your health workers, and physicians have ing to potential wide fluctuations in OFI leadership. Let's work together to identify signed protest petitions on his behalf. credit demands is established. I think you our common areas of interest and to build a I thank my colleagues for the enthu­ will agree that it would be a nightmarish. relationship which will assure our mutual siastic support they have shown for 7202 EXTENSIONS OF REMARKS April 9, 1981 Dr. Gluzman, and invite anyone else HUMAN RIGHTS IN .ARGI:ifTINA Sunday. We took special note of Senator to join us in this effort.e I am very grateful for the opportunity to Pell's statement on March 17: "I am delight­ appear today before this distinguished Com­ ed that at a Senate coffee today for mem­ mittee.1 I am a member of the firm of bers of the visiting Argentine delegation, HUMAN RIGHTS IN ARGENTINA Hughes, Hubbard & Reed, a former Presi­ President-Designate Viola stated that his dent of the Association of the Bar of the government will publish a listing of all HON. DON BONKER City of New York, and currently the ABA's those known by the government to have dis­ observer to the U.N. In recent years, I have appeared and to have died over Argentina's OF WASHINGTON been involved in a number of human rights past several years of internal turmoil. Such IN THE HOUSE OF REPRESENTATIVES activities. I have visited the Soviet Union on a listing is a critical step in determining the Thursday, April 9, 1981 several occasions on behalf of dissidents in fate of thousands who have disappeared in that country, and am Co-Chairman of the Argentina. This list is earnestly desired by e Mr. BONKER. Mr. Speaker, on U.S. Helsinki Watch, a non-governmental the families of those who are missing, as I April 1, the Subcommittee on Human organization which monitors compliance learned on my recent visit to Argentina." Rights and International Organiza­ with the Helsinki accords of 1975. Last fall I changing the statute which prohibits appearances, which were held in the fall of 1979. To briefly summarize that testimony, He explained, "We are not certain about military aid or commercial sales to the our mission found that at least 10,000 per­ how many disappeared there are. For exam­ Government of Argentina. sons have disappeared in Argentina since ple, a while ago, one of them 'reappeared.' Mr. Schell noted that an active the military junta took power in March, You have to take into account those who human rights policy can help reduce 1976, including 92 lawyers. Many of these have gone into exile and those who live human rights violations in other coun­ disappeared, or desaparecidos as they are clandestinely in Argentina." . Union and her Eastern European satellites members of our lawyers' mission have con­ But more than two years later the govern­ to dismiss our actions as insincere or as tinued to follow, and to express our ongoing ment still refuses to disclose any informa­ manifestations of cold war politics. Our fail­ concern about the human rights situation in tion regarding the fate of the desaparecidos, ure to speak out about the violations of that country. beyond vague suggestions that most are basic rights in Latin America or Asia severe­ Last month we read with great interest dead. ly undermines our ability to protect those and encouragement the press reports de­ In April, 1979, General Viola made to our courageous individuals who daily risk their scribing meetings between Congressional mission what he called a "formal promise" lives and freedom to promote human rights leaders and General Roberto Viola, who as­ that the PEN detainees would either be re­ in Eastern Europe. sumed the Presidency of Argentina last leased, transferred to the civilian courts to As the Congress reviews our rela­ be charged and tried under the law, or al­ lowed to leave the country. He said that this tions with Argentina, Mr. Schell's re­ 11 wish to acknowledge the assistance of R. Scott would be accomplished "soon," and that marks are particularly timely. I would Greathead and Michael H . Posner in preparing my testimony today. Mr. Greathead was a member of only a very small number of extremely dan­ like to commend to the attention of our Mission to Argentina, and Mr. Posner is the Ex­ gerous persons would continue in PEN de­ my distinguished colleagues a section ecutive Director of the Lawyers Committee for In­ tention.

79-059 0 - 84 - 9 Pt.6 7206 EXTENSIONS OF REMARKS April 9, 1981 honorable undertakings. Carroll has worked as an engineer in that field for nine themselves by saying, "Maybe she can help done them both, but has gone much years. The application which her family us to get on our feet again." further. He not only votes but involves submitted was immediately interpreted by Meanwhile, Janna's sister, in Rome, himself in the campaigns of candi­ the Soviet government as an "unfriendly" became alarmed about their depressed dates he supports. He served in the (indeed, traitorous> action; therefore, the moods and pleaded with their American government contended that Janna might friends, "They lost their hope. • • • but I military during World War II, but misuse her position as a lecturer for the wrote them that they have to ignore some came home with the goal of doing purpose of disseminating some form of anti­ things, that they have to fight for their even more for his country. Soviet propaganda. Although no aspect of future, that they have to believe in justice. All of these activities have made him her work was considered "SECRET," she • • • tell them, please, the same things. an exemplary citizen; one who not was forced to give up her job...... only observes the needs of others Since their first refusal, the Lerners have re-applied whenever they have been eligible. For those who wait, the knowledge that around him but actively involves him­ Their latest refusal was issued in July, 1980. they are not alone and are not forgotten is self in the effort to meet those needs. Finally forced from his last fob as a clerk in often the extra ounce of incentive needed The appreciation ceremony held for an insurance company, Valery has been con­ by them to continue their seemingly endless him Friday at the Frayser High tinuously· unemployed since March, 1979. fight for freedom. Within a short time, the School in Memphis was very appropri­ Financially, the Lerners live from day to Lerners had recovered themselves enough ate in recognizing a man who has been day, dependent upon the help of their to write, "Your kindness gives us renewed so unselfish in giving of himself for friends and of Janna's mother who works strength." Less than a month after the the betterment of others. It has been two jobs in order to assist her children. Job­ crushing disappointment of that refusal, less and fearful of being labeled "Parasites," Janna was able to muster the needed spirit my privilege to know Carroll all of his the Lerners have spent much of the last two to write: life and it is an honor that I count him years living quietly, trying not to attract the "When I'm troubled and life doesn't seem among my closest friends.e attention of watchful KGB agents. Time beautiful, I read and re-read your letters; and time again, they have waited for legal and, everything begins to seem fine. • • • I HEROIC REFUSENIKS proceedings to run their course. Daily, their thank God for your being my friends. I mental and spiritual fortitude is tested by cannot even imagine what could have been restless boredom and the feeling that they if we didn't get acquainted. Life presents a HON. WILLIAM L. DICKINSON are trapped in lives that lead nowhere. person a lot of sorrows and joys. And, I'm OF ALABAMA Their letters during this time afford outsid­ sure that your friendship is the best gift for ers an inspiring insight into the way in all my sorrows." IN THE HOUSE OF REPRESENTATIVES which so many Jewish Refuseniks suffer pa­ Thursday, April 9, 1981 tiently without succumbing to despair and By Chanukkah, 1979, the Lerners had without ever losing hope. fully regained their spirit and hope. In De­ e Mr. DICKINSON. Mr. Speaker, I A few days before Chanukkah 1978, Janna cember, Valery wrote, almost triumphantly, have asked permission for this very Lerner stoically wrote to her friends in the "It's difficult to say when we'll see each special order to bring to the attention United States, "To my great regret, I cannot other, but I am sure that we will. How of the Congress and the public the tell you good news about our life. Some days joyous it will be! • • • We do not lose our case of Valery and Janna Lerner, and ago, we got a new refusal. That's the way spirit, and we are even better off than some their son, Igor, very heroic refuseniks, life is. We live by our hope for the future." others." whose pleas to the Soviet Government Their spirits undaunted by the six years As they have waited, the Lerners have for permission to emigrate have con­ that they had already waited, the Lerners had more with which to contend than mere wrote on February 15, 1979, "In March we financial harship and the personal anguish sistently been denied. will again begin filling out our documenta­ of being separated from family members. After several years of apparent con­ tion papers. We live in hopes of the best." Because of an accident, Janna Lerner was ciliation and cooperation in the emi­ At that time, the Lerner family had al­ hospitalized and confined to her bed be­ gration of Soviet Jews, the Soviet au­ ready suffered several years of painful sepa­ tween December 1979 and March 1980. The thorities have begun to shut the doors ration. Valery's brother had been permitted adult members of the family have battled of freedom for many Soviet Jews who to immigrate to Israel in 1974, and his various physical ailments throughout the simply wish to join the rest of their mother followed in 1977. In May 1979, the past year-acute bronchitis, pneumonia, hy­ families outside the Soviet Union. I be­ Lerners received news that brought them pertension. Their greatest concern, though, both joy and sadness. Janna's younger has been for their son who has suffered lieve we must take strong action to in­ sister, who was also a Refusenik, was grant­ with amblyopia since birth. During the dicate our displeasure at this latest ed permission to emigrate. Unable .to dis­ entire time that the Lerners have been wait­ plan to prevent emigration. guise her worry and pain, Janna Lerner ing for their permission to emigrate, they The story of the Lerner family spoke with a voice of both resignation and have watched their son fight a succession of cannot be told any better than by the determination when she wrote on May 26, illnesses. In a letter which the Lerners sent following account that has been pro­ 1979: to an American senator, they pleaded: vided to me by two of my constituents, "* • • It was very hard to say good-bye to "Our son is seven and a half years old. He Mrs. Joseph Bussard and Mrs. Charles her; she is only twenty years old. I've been has amblyopia of the right eye. The left Wampold, which I would like to share looking after her since she was born, and eye's sight is 70%; the right eye's is 10%. He our mother is now left alone in Kiev. Were­ has been treated since he was three years with my colleagues~ membered the past and fretted and remi­ old • • • But without any result. We are RUSSIA'S BRUTAL OPPRESSION OF REFUSENIKS nisced and worried some more. But, appar­ worrying about his sight. Within walking distance of the famed Red ently, one's whole life consists of worry • • • "Lately, we have read in a Canadian news­ Square live Valery and Janna Lerner and Our situation is unchanged. • • • Our docu­ paper that this illness is treated in the West their eight year old son, Igor: After working ments are in the process of being examined. , in a month's time, but the child treated as an economics engineer in the field of ... must not be older than 8. Today, it is the aviational planning, it became necessary for And, she concluded with what have since most important problem with us. I think Valery to leave his chosen profession in become identifying watchwords for the you can understand what a child's sight 1974 when he and other members of his Lerners and so many others-"We wait. , means. • • • I think you can understand in family made the decision to emigrate. Al­ ... what position we are-especially because of though Valery was never made privy to any A month later, while Janna's sister was our only son's health." secret information, he was well aware that still in Rome, en route to the U.S., the others in his field had been routinely re­ Lerners received yet another refusal. Feel­ In this same letter to the senator, they in­ fused merely because of the general nature ing tired and defeated, the Lerners lapsed clude The language confer­ thermore, I have tried to emphasize ist. Kukk and Niklus were both brought to ring upon the Joint Committee "the func­ trial at the same time on January 5, 1981. tion of reviewing and studying, on a con­ the limited scope of the committee by On January 8, Niklus was sentenced to 15 tinuing basis, the organization and oper­ providing for a constantly revolving years and Kukk. was sentenced to two years ation of the legislative branch of the Feder­ membership. The chairmanship at forced labor. Kukk was incarcerated in an al Government, with particular concern to swings back and forth between the Estonian labor camp on January 22 and, in the agencies within the legislative branch as Houses every year, no person may failing health, later transferred to an un­ defined in subsection c" • • • is meant to serve as chairman or vice chairman of known camp in the Murmansk region on give the Joint Committee a light and gener­ the committee during more than one February 26 of this year. al oversight responsibility in the case of the Congress, and no Member may serve Kukk's wife, Silvi, resides at Aardla 9a-37, operations of the Senate as such and the Tartu 202-400, Estonian SSR. There are two House as such, so as not to conflict with or on the committee for more than three children, a son, Andres, age 13, and a daugh­ duplicate the activities of the administra­ Congresses. I feel strongly that the op­ ter, Liis, age 9.e tion committees of each body, but to give erations of the Congress are of equal precise oversight responsibility in the case importance to all of us, and I would of the enumerated legislative branch agen­ hope this automatic turnover in the ANALYSIS OF MEASURE TO ES­ cies. The Joint Committee shall issue an membership of the Joint Committee TABLISH A JOINT COMMITTEE annual report, which shall include a sum­ would be of educational benefit both ON THE LEGISLATIVE BRANCH mary of its audit and recommendations, if to the Congress and to the public by any, for improvements in the organization acquainting more Members with the HON. ROBERT McCLORY and operations of either house. details of our operations. In addition OF ILLINOIS Section 4 limits the Joint Committee to a nonpartisan staff of 12 professional and 6 to accounting for the expenditure of IN THE HOUSE OF REPRESENTATIVES clerical employees but gives the Joint Com­ legislative branch appropriations of a Thursday, April 9, 1981 mittee authority to detail employees from regular basis and in a manner designed • Mr. McCLORY. Mr. Speaker, in re­ legislative branch agencies such as the GAO to show the overall workings of. the sponse to requests which have been or the Library of Congress as needed to Congress, perhaps we can use the assist in the audit or additional oversight Joint Committee's annual report to coming to my office for a brief section­ work. Expenses of the Joint Committee by-section analysis of the Joint Com­ better educate our citizenry and our­ shall be paid half from the contingent fund selves on just what is entailed in the mittee on the Legislative Branch Res­ of the Senate and half from the contingent olution, I insert in the CONGRESSIONAL fund of the House. making, debating, and reviewing of the RECORD the following general sum­ Section 5 gives a general schematic for the Nation's laws. mary of the bill's contents. This analy­ Joint Committee. The Joint Committee Mr. Speaker, I will be happy to re­ sis covers only the main points. Mem­ shall make and publish and follow its own spond to any other questions Members bers interested in some of the finer de­ rules, meet at least once a month, and keep may have about this bill, either here records. Proxy voted is prohibited. The on the floor or in my office.e tails should refer to the bill itself, Joint Committee is given subpoena power which has been numbered House Joint and may broadcast its hearings. No recom­ Resolution 218. My brief remarks mendation may be reported unless a major­ upon introduction of the bill may be ity of the Joint Committee was actually IRVING KRISTOL AND HUMAN found in the CONGRESSIONAL RECORD of present. RIGHTS March 25, 1981. Section 6 repeals the Joint Committee on BRIEF ANALYSIS the Library and the Joint Committee on HON. ROBERT H. MICHEL Section 1 of H.J. Res. 218 provides a short Printing and assigns the functions of these title for the bill: the "Joint Committee on two committees to the new Joint Commit­ OF ILLINOIS the Legislative Branch Resolution." tee. IN THE HOUSE OF REPRESENTATIVES Section 2 provides for the membership of Mr. Speaker, I might just offer a Thursday, April 9, 1981 the Joint Committee. It is to be an evenly couple of words of explanation con­ bipartisan committee, with a total of 12 cerning certain provisions of the bill. e Mr. MICHEL. Mr. Speaker, the dis­ members, six from the Senate and six from the House-3 majority and 3 minority mem­ The idea behind the legislation is to tinguished academic writer and think­ bers from each body. There must be one establish both a regular procedure and er, Irving Kristol, has the rare ability majority and one minority member from a responsible entity for accounting to to write about complex political &nd the Senate Committee on Rules and Admin­ the American people on the expendi­ social issues in a clear, rational, and istration and one majority and one minority ture of their money to operate the leg­ informative way. Recently he turned member from the House Administration islative branch of the Federal Govern­ his considerable talents to the ques­ Committee. No carry out this objective because it "The Common Sense of 'Human member may serve on the Joint Committee seemed to me a logical and neat way to Rights' " by Irving Kristol, the Wall for more than three Congresses, the chair- handle the matter. But I am open to Street Journal, April 8, 1981: April 9, 1981 EXTENSIONS OF REMARKS 7211 THE COMMON SENSE OF "HUMAN RIGHTS" that, while the United States has a better state. These last are American ideas, not Recently, on NBC network news, we were record than, say, the Soviet Union or Cuba necessarily exportable. If a nation wishes to informed that the United States was con­ in certain areas of human rights, these have a state-established religion, with spe­ templating sending arms to Pakistan, as latter nations can claim superiority in other cial privileges, that is its affair. But freedom part of a new military alliance. Immediately areas-so, in sum, there really is no absolute from religious persecution is a human right following the transmission of this bit of difference, no difference in principle, be­ whose universality we must insist on. "hard news," we were further informed that tween us and them. Indeed, the whole point Here again, our official and utter indiffer­ Pakistan is a nation where the legal code of such a radical expansion of the idea of ence to the violation of this human right­ still permits the public flogging of criminals "human rights" is to minimize the impor­ an indifference so visible at the UN-is a and where the political opposition is re­ tance of individual liberty as the keystone major scandal. Why haven't those repre­ pressed. In this way we were given notice by of that idea. sentatives at the UN criticized the current the media that an alliance with Pakistan This permits dozens of nations to make government of Iran for its vicious persecu­ creates a serious "human rights" problem solemn speeches in the UN in favor of tion of the Bahais? When was the last time for us. "human rights" while blandly restricting those representatives denounced the Soviet Does it? To give a reasonable answer to and repressing individual liberty at home. Union for persecuting pious Christians, that question would require thoughtful re­ It would be a blessing if the United States Jews and Moslems? One suspects that this flection on the whole issue of human rights, began to move openly and deliberately to reflects the secular temper of the State De­ something that has not been a notable char­ dissociate itself from this UN smokescreen. partment, the media, the intellectual com­ acteristic of current controversy. Instead, That would assuredly cause an enormous munity. But we can be certain it does notre­ we have been treated mainly to vacuous flap, both at the UN and among our own lib­ flect the temper of the American people. moralism, hypocritical and tendentious ex­ eral folk. But it would be well worth while. The rights of racial minorities were not poses, and I regard it as noth­ doing so. This may ruffle the sensibilities of tions and resolutions, which list as "human ing less than a scandal that our representa­ some foreign governments-but that is a rights" such items as vacations with pay, tives to the UN have, over the years, delib­ price we should insist they be prepared to maternity leave, full employment and free erately ignored this issue, presumably for pay. medical care, are illustrative of this tend­ fear of offending Soviet sensibilities. In extreme situations, of course, discus­ ency. The American government, in its mo­ Religious toleration is an idea so funda­ sions of human rights become a luxury, and ments of silliness, has actually signed such mental to the American way of life, so the governing principle then becomes: The declarations and resolutions. But the Ameri­ rooted in American traditions, that we enemy of our enemy is our friend. Just can people never have subscribed to any simply cannot be indifferent to violations of when a situation is so extreme it is not easy such nonsense. that idea. Mind you, I am talking about reli­ to say, short of actual armed conflict. There Actually,· it is a rather dangerous piece of gious toleration-i.e., freedom from religious are not, thank goodness, many places in the nonsense. Such a conception of "human persecution-not religious equality, and world today where our foreign policy is en­ rights" permits left-wing ideologues to claim definitely not separation of church and trapped in such dire extremity-which is 7212 EXTENSIONS OF REMARKS April 9, 1981 why I believe that the issue of human rights sentatives, one of the major propo­ or a line of merchandise, directly or indi­ is a real one and has to be integrated, better nents. rectly, by a principal from a particular mar­ than it has been, into a realistic foreign The material follows: keting area during a continuous period of at policy.e H.R. _ least one year. <5> The term "principal" means any A bill to correct inequities in the relation­ person who- SALES REPRESENTATIVES ship between sales representatives and engages in the business of manufac­ PROTECTION ACT their principals, and for other purposes turing, producing, assembling, or importing Be it enacted by the Senate and House of merchandise for sale in commerce to an ac­ HON. JAMES J. FLORIO Representatives of the United States of count which purchases the merchandise for America in Congress assembled, OF NEW JERSEY resale; IN THE HOUSE OF REPRESENTATIVES SHORT TITLE utilizes sales representatives to solicit SECTION 1. This Act may be cited as the orders for the merchandise; and Thursday, April 9, 1981 "Sales Representatives Protection Act". compensates the sales representatives, e Mr. FLORIO. Mr. Speaker, I am STATEMENT OF FINDINGS in whole or in part, by commission. pleased to announce my intention to (6) The term "sales representative" means SEc. 2. The Congress hereby finds that- any person many sales representatives are com­ merchandise of the principal. of the Nation in the last Congress. pensated primarily by commission and do <7> The term "State" means each of the Our colleague from New York, DicK not generally have the benefits of collective several States, the District of Columbia, the OTTINGER was the lead sponsor, and he bargaining, workmen's compensation, unem­ Commonwealth of Puerto Rico, Guam, and gained 158 Members of the House as ployment compensation, company-spon­ the Virgin Islands. cosponsors. sored retirement, or pension plans; TITLE I-CONTRACTS BETWEEN SALES This widespread support led to a (3) many sales representatives are subject­ REPRESENTATIVES AND PRINCIPALS hearing by the Commerce Consumer ed to wrongful termination from their ac­ CONTRACT TERMS Protection and Finance Subcommittee counts, reduction in the size of their sales territories, conversion of their accounts to SEc. 101. Any written contract con­ June 18, 1980. The subcommittee house accounts serviced directly by their forming to this title between a sales repre­ heard many witnesses that day and in­ principals, and other abuses which deny sentative and a principal under which the tended to schedule another hearing, them the full benefits of their labor; sales representative solicits orders for the but time constraints prevented further (4) there are significant inconsistencies in merchandise of the principal shall- consideration of this proposal. the construction· and application of the laws <1 > specify the rate of commission or any With the reorganization of the full of the several States as they apply to rela­ other form of compensation to be paid by tionships between principals and sales rep­ the principal to the sales representative; committee this year, the Subcommit­ <2> specify the minimum term of the con­ tee on Commerce, Transportation and resentative and the termination of such re­ lationships; and tract; Tourism, of which I am chairman, (5) it is in the public interest to encourage <3> specify, in accordance with subsec­ gained jurisdiction over the Sales Rep­ the development of equitable contracts be­ tion (b)(l), the number of days of written resentatives Protection Act. The rank­ tween sales representatives and their princi­ notice the principal shall give the sales rep­ ing minority Member, NoRMAN F. LENT pals and for principals to provide reasonable resentative before terminating or failing to of New York, is also a cosponsor of compensation to sales representatives who renew the contract without good cause; or this bill, and supports my intention to are wrongfully terminated. specify, in accordance with subsection (b)(2), the amount of payment which shall hold hearings on it this summer. DEFINITIONS be made in lieu of the written notice pursu­ The Sales Representatives Protec­ SEc. 3. For purposes of this Act: ant to subparagraph ; tion Act, or "SRPA", seeks to encour­ (1) The term "account" means a wholesal­ <4> specify the number of days of written age the existence of contracts defining er, retailer, contractor, or other businesses­ notice, or the amount of payment which the relationship between wholesale, tablishment- shall be made in lieu of written notice, the commissioned sales representatives which purchases any merchandise of a principal through a sales representative for principal shall give the sales representative and the manufacturers they represent. before the principal effects a marketing resale; and area withdrawal; SRPA is designed to protect sales reps to which the sales representative solic­ from sudden and unfair termination ited orders on behalf of the principal for a (5) include a description of the sales terri­ from accounts that they have invested period of not less than 18 months immedi­ tory assigned to the sales representative and time and money building up. ately preceding the termination of the sales a statement of whether the territory will be representative by the principal. an exclusive territory of the sales repre­ The sponsors of this bill have made sentative with respect to the merchandise, several alterations to previous versions <2> The term "commerce" means trade, or line of merchandise, of the principal; of SRPA, in response to suggestions traffic, transmission, communication, or transportation- <6> include provisions relating to the own­ made in hearings and discussions with between a place in a State and any ership of any samples furnished by the prin­ interested parties. We believe that the place outside the State; or cipal to the sales representative for use in legislation has been improved, and we which affects trade, traffic, transmis­ business; look forward to its further examina­ sion, communication, or transportation de­ <7> specify the number of days after an tion and approval this year. scribed in subparagraph . order for the merchandise of the principal is <3> The term "good cause" means- transmitted to the principal within which I will be joined in introducing this the principal shall notify the sales repre­ bill within the next several weeks by conduct on the part of a sales repre­ sentative with respect to the principal of sentative whether the order has been ac­ Mr. LENT, Mr. OTTINGER, MATT RI· the sales representative which constitutes­ cepted or rejected; NALDO, BILL BRODHEAD, CHARLES ROSE, (i) dishonesty, fraud, or other illegal activ- . <8> include terms under which the sales WYCHE FOWLER, and BILL FRENZEL. ity; representative will receive copies of ship­ Many other Members have already in­ (ii) a material breach of the contract be­ ping documents which relate to merchan­ dicated their desire to cosponsor this tween the sales representative and the prin­ dise shipped by the principal to an account new bill, and we will be pleased to add cipal; of the sales representative; and any Member who wishes to join us include terms under which the sales to obtain orders for the merchandise of the representative will be allowed to solicit when it is introduced. principal; orders for the merchandise of other princi­ For the information of all con­ The notice specified in subsection legislation and a summary of its provi­ a marketing area withdrawal. <3> shall not be less than 30 days for sions, which has been prepared by the <4> The term "marketing area withdraw­ each year the sales representative involved Bureau of Wholesale Sales Repre- al" means the withdrawal of merchandise, has solicited the account involved, except April 9, 1981 EXTENSIONS OF REMARKS 7213 that the notice shall not exceed a maximum or of paragraph <1> shall indemnify the TITLE III-MISCELLANEOUS of not less than 90 days. sales representative involved in accordance PROVISIONS (2) the payment specified in subsection with section 203 if- PROCEDURAL REQUIREMENTS <3> shall be paid not later than 30 any such reduction results in a decrease involved. Such payment shall not be less rights or liabilities created by this Act may in the dollar amount of commissions paid by be brought in a district court of the United than one-twelfth of the average annual the principal to the sales representative for compensation of the sales representative for States without regard to the amount in con­ the 12-month period following such reduc­ troversy or in any other court of competent the period during which the sales repre­ tion or combination of reductions; and sentative solicited the account during the jurisdiction. such decrease is equal to or greater (b) In the case of an action arising under preceding 5 years, multiplied by the lesser than 25 percent of the dollar amount of of the total number of years that the this Act which is brought in a district court commissions paid by the principal to the of the United States, the action may be sales representative solicited the account; or sales representative for the 12-:tnonth period 3 years. brought in the judicial district where all the immediately preceding such reduction or plaintiffs reside in addition to any other ju­ DUTIES OF PRINCIPAL combination of reductions. dicial district provided by law. SEC. 102. Any principal who enters into a <3> The calculation of any decrease in the No action may be brought under this contract with a sales representative under· dollar amount of commissions paid by a Act later than 6 years after the right to the which the sales representative shall solicit principal to a sales representative under action arises. orders for the merchandise of the principal paragraph <2> shall disregard any portion of In any action brought by any sales shall- such decrease which is directly attributable representative against any principal under <1> inform the sales representative, within to non-performance of the sales representa­ this Act, the burden of proof on the issue of a reasonable time to be specified in the con­ tive, an act of God, an act of war or insur­ whether the principal acted without good tract, of the receipt of each order by the rection, a strike, or an action by any agency cause shall rest on the principal. principal from an account of the sales repre­ of government. In any successful action brought by a sentative; COMPUTATION OF INDEMNITY sales representative under this Act, the <2> furnish the sales representative, within court may award reasonable attorney fees a reasonable time to be specified in the con­ SEc. 203. Any principal required under and the cost of the action to the sales repre­ tract, copies of all invoices and credit memo­ section 202 to indemnify a sales representa­ sentative. randums issued with respect to sales in any tive for the loss or reduction of commissions (f) Payment of indemnification under this assigned geographic territory of the sales from any account shall be liable to the sales Act shall be deemed to be a payment of representative; representative in an amount equal to one­ wages and salary under sections 507 <3> (3) furnish the sales representative sixth of the average annual compensation and (4) of title 11, United States Code. monthly statements of commissions due the of the sales representative for the period (g) The right to indemnification arises on sales!representative; and during which the sales representative solic­ the date the principal has completed the ac­ <4> provide to the sales representative, ited any such account during the preceding tions specified in section 202 and does not upon the written request of the sales repre­ 5 years, multiplied by the total number of terminate upon the death of the sales repre­ sentative- years that the sales sentative. an accounting showing each sale made representative solicited any such account. by the principal in the preceding 12 months WAIVER PROHIBITED in any assigned geographic territory of the PAYMENT OF INDEMNITY RESULTING FROM SEc. 302. Any provision in any contract be­ sales representative, except that such ac­ SETTLEMENT tween any sales representative and any prin­ counting may not be required more fre­ SEc. 204. Following the making of a cipal requiring the sales representative to quently than once during each 12-month binding agreement to settle a claim by a waive any of the provisions of this Act shall period; sales representative against a principal for be void. information with respect to any specif­ an indemnity under this title, and before EFFECT ON STATE LAW ic matter which is related to any claim by any action is brought under section 30l, the sales representative against the princi­ SEc. 303. Nothing in this Act shall invali­ the principal involved- date or restrict any right or remedy of any pal for a commission; and <1 >shall pay the amount of the settlement access to the records of the principal sales representative under the law of any to the sales representative not later than 30 State. for the purpose of verifying specific infor­ days after the date of the agreement; or mation supplied under subparagraphs and . <2> if the amount of the settlement is SUMMARY OF THE SALES REPRESENTATIVES greater than $3,000, may elect to pay the PROTECTION ACT A principal electing under subsec­ deavor to traverse a maze of inconsistent under this Act may be brought by a sales tion <2> to pay the amount of a settle­ and conflicting state laws. SRPA requires no representative against a principal if the ment in excess of $3,000 under this subsec­ budgetary appropriation, no funding, and sales representative and the principal have tion shall pay not less than 40 percent of no involvement of any federal agency. En­ entered into a written contract which con­ the amount to the sales representative not actment would not increase the cost of gov­ forms with the requirements established in later than 30 days after the date of the ernment. title I. agreement. SRPA's remedy is a claim to an indemnity INDEMNIFICATION REQUIREMENTS <2) The principal also shall, at the time of that may be adjudicated under limited con­ SEc. 202. Any principal who, without the payment specified in paragraph <1 >. give ditions and only where the sales representa­ good cause, terminates a sales representa­ the sales representative two negotiable tive has represented the principal for at tive from an assignment to solicit orders on notes, each for one-half of the balance of least 18 months. The remedy is not availa­ behalf of the principal shall indemnify the the amount of ·the settlement. One such ne­ ble where the parties have entered into a sales representative in accordance with sec­ gotiable note shall be due not later than conforming written agreement. A conform­ tion 203. 12 months after the date of the agreement; ing agreement must provide for a minimum (b)(l) Any principal who- and bear interest at the highest· rate of of 30 days notice for each year of represen­ reduces, without good cause, the size interest paid by the United States on notes tation up to a maximum of 90 days notice of the geographical territory assigned to a issued by it during any 3-day period includ­ where the relationship is terminated with­ sales representative; or ing such date. out good cause. Other items to be negotiat­ reduces the rate of commission paid to (3) The second such negotiable note shall ed by the parties and addressed in a con­ a sales representative; or be due not later than 24 months after forming contract are: reduces the number of accounts as­ the date of the agreement; and bear in­ Commission rate signed to a sales representative within a geo­ terest at the highest rate of interest paid by Term of the contract graphical territory; the United States on notes issued by it Territory assigned shall be subject to the requirements estab­ during any 3-day period including such date. Ownership of samples lished in paragraph <2>. Nothing in this section shall restrict or Time period to accept or reject an order <2> Any principal who carries out any re­ invalidate any right or remedy established When shipping documents are to be fur- duction specified in subparagraph . . in sections 301 and 303. nished 7214 EXTENSIONS OF REMARKS April 9, 1981 Whether or not additional lines may be to better the life of those around him. to concentration camps in Japan as were carried. His record of accomplishments is their American counterparts. They were left Under such a contract, the principal must second to none. He helped found the with the awesome responsibility of minister­ inform the sales representative of receipt of ing to the 98 percent Catholic population of orders, furnish copies of invoices, credit Helping Hands of Guam, an organiza­ the island. They split it. Father Calvo took memos, and monthly statements of commis­ tion to help the poor; he promoted the northern half, which included the city ions due, and, upon request of the sales rep, local culture by teaching the local lan­ of Agana and contained the bulk of popula­ provide an annual accounting and access to guage at the Territorial College of tion. On Monday morning he would leave the records. Guam; he worked long and hard to his parents' ranch in Maite by bicycle, bull If a contract conforming to the first para­ promote agriculture by founding the cart, sometimes horse carriage; going from graph was not negotiated, any principal annual coconut festival at Inarajan; place to place offering Mass and conferring who: and even found time to organize the the sacraments. Once he absolved and gave 1. terminates a sales rep without good Communion to two condemned men, who cause, or who first Boy Scout troop on Guam and were shot by firing squad immediately after­ 2. causes a decrease in the sales rep's earn­ serve as its pastor. ward. Saturday evening he would return to ings of 25% or more by The people of Guam were not alone the ranch. a. reducing the sales rep's territory in recognizing the unusual and signifi­ A small Japanese Navy garrison adminis­ b. converting accounts serviced by the cant contributions of this great man. tered Guam, and the island was peaceful, if sales representative to house accounts, or In 1947, the Catholic Church granted forced labor for women in rice paddies and c. reducing the commission rate Father Calvo the title of monsignor for men building fortifications on the reef is subject to a claim for indemnity. To calcu­ and made him a papal chamberlain can be termed such. late the indemnity, determine the sales under Popes Pius XII, John XXIII, On one occasion Father Calvo was told by rep's average annual commissions earned by the Minseibu, the local administrator, to soliciting the lost accounts or commission and Paul VI. locate Father Duenas and bring him to for the principal for the past 5 years; divide But to a man who has devoted his headquarters within three hours or lose his by 6 and multiply by the number of years entire life to service in the church to head. In vain did he explain that without in Jan. this privilege. This is clearly a lack of com­ mitment and concern for the future of our eign policy objectives is the preservation of 1947 and served in that capacity under peace. That which disturbs the peace, no Popes Pius XII, John XXIII and Paul VI. country on their part. The law also plays a significant role in matter what its source, is injurious, not only Monsignor Calvo is a charter member of preserving these personal freedoms guaran­ to our interest, but to the interest of the the Rotary Club of Guam, a charter teed by the Government. One man's lib­ people on whom it's being visited. member of the Knights of Columbus, fourth erties cannot be at the expense of another, Q. How important is the Soviet involve­ degree and a tertiary of the third order of and therefore a just and strong judicial ment in the spread of international terror­ St. Francis of Assisi. system protects every individual citizen. ism in the disruption of peace in the West­ This happens to be my chosen career field, em world? He has published a translation of Bible for I want to do my part in safeguarding A. I think substantially Secretary of stories in Chamorro, a pictorial book review these individual liberties. State has made quite a good case, I think, of Guam from 1521 to 1940 and a book on As the United States stands today on the demonstrating Soviet involvement. But we the life of Luis de Sanvitores, Apostle of the possible brink of world war III, it is especial­ have to be careful to define that involve­ Marianas. ly distressing to hear the lack of commit­ ment. What does it mean? Does it mean His eyesight has failed over the years ment by so many Americans. As our Nation direct participation? Does it mean the sup­ until now he is blind but not incapacitated. watches the burning of the American flag port, whether it be ideological, hortatory, by the Iranians, millions of men and women tangible? And in the case of the supply of With the aid of an assistant he carries on weapons, which are ultimately used to in­ research and tapes oral history. say they will refuse to fight in any war in which the United States becomes involved. flict terrorism, there has been, I think, The past forty years have not been easy, This is one of the saddest things I have ever ample evidence accumulated. but Monsignor Calvo has answered the call heard. Although I too would be afraid, I I need only mention the work of Claire and fought the good fight. For the past would rather fight for the survival of our Sterling in this regard. I think it is a signifi­ forty years this man of God has been an in­ Nation which has given us all so very much, cant landmark work on the subject of ter­ spiration and a pillar of strength for the than to succumb to communistic rule with­ rorism, and something about which we have people of Guam.e out even a struggle. to be better informed. 7216 EXTENSIONS OF REMARKS April 9, 1981 We've had some studies in this country, A. Well, there are two premises there terrorism. I mean, atrocities become a way such as that done by Robert Kupperman which I, of course, am not going to share, of life on a day-to-day basis that we sooner and Darrell Trent. We're way behind the but you then pose a totally hypothetical sit­ or later tune it out. It's not unlike trying to power curve, and we've been very fortunate uation. describe to people what the extermination so far that all violent forms of terrorism The relevance of the Soviet Union in such of six million Jews means. Six million is a have not been inflicted upon our people a hypothetical circumstance would be huge figure. We can't conceive of this; our here. rather substantial. Of course, that would be children can't conceive of what the elimina­ Q. What about the Soviet role in the a function of how close the Soviet Union tion of six million people is. If thirty people Middle East? How would you define their were to such a hypothetical state with a hy­ are killed in a bus accident, that's stagger­ relationship with the PLO? pothetical government. ing already. Thirty individual lives are lost. A. It's difficult to assess the relationship If you are going to ask that question an­ As far as I'm concerned, whenever terror­ with the PLO because there are various other way, would such a state be a puppet, ism results in that loss of life is to be con­ component parts of the PLO. But, overall, I an appendage of the Soviet Union, or a sat­ demned. Now, I'm not here to confuse ter­ think it's fair to say that the Soviet Union is ellite state, I really don't know. But I think rorism with the legitimate right of self-de­ supporting the main aims of the PLO. the influence would be heavy because the fense. We could go back and appeal to Again, that fine line between the support historical influence has been heavy, and the Thomas Of Aquinas if we wished, or earlier of a tangible nature and support of an ideo­ evidence is there to show it. in the origins of law, for justification of self­ logical nature is difficult to measure. But, Q. What troubles some journalists now, defense. But, the inflicting of terrorism is it's there. Any student of the Soviet system, particularly since Claire Sterling's book has something quite special. We haven't had it, anyone who is even reasonably serious in an been published, is the many people talking so we can't know it. evaluation of the Soviet system, from its in­ about the Soviet connection with the PLO The Italians have known it; it's been prac­ ception, who is even in the most cursory and the Soviet connection with internation­ ticed on the streets of Italy. You have to way familiar with the writing of Lenin or al terrorism in general. But, the of combat this. We have to get the nations, the Stalin, and after that it's more or less disap­ substantial evidence to corroborate· the fact civilized nations of the world together, and peared. The use of terror has been an im­ that the Soviet Union is in some way fund­ combat it. portant weapon, an important instrument in ing, manipulating, supplying these various What the Iranians did in holding our hos­ achieving revolutionary goals. groups. tages was terrorism. And the holding of the After all, you have to understand that the A. Mr. Rivera, I can-unfortunately I'm airliner, the hijacking of the Pakistani air­ Soviets do have a very tightly closed ideo­ not at liberty to go into great detail with liner and holding it in Kabul was an exten­ logical system or framework in which ter­ you on this show, which I'm sure will be a sion of terrorism. We found there that ter­ rorism is one important component part. fine one, about the level of involvement. rorists got off the plane with better weap­ Q. But, specifically in terms of the PLO, I can tell you only that I am perfectly sat­ ons than they had gone on the plane with. what iS the Soviets' role? Is it the providing isfied and I am prepared to defend that We know from our own methods of inter­ of arms? Is that it basically? Is it the con­ level of satisfaction in public forum, that preting intelligence what the Soviet role doning of criminal acts? Is it all of those the Soviet involvement is organic. And I was in that. things? don't want to just isolate it with respect to This must stop. The people of the civilized A. I think so, I think it is probably all of the PLO. We need to talk ... you need to world must be awakened to this. The terror­ those things. I think it's financial, although amplify the context here to talk about ism that the Soviet troops are practicing on others have perhaps taken up some of the training African terrorists, Latin American the people of Afghanistan today is some­ slack that may have developed from the terrorists, and, of course, not even the Sovi­ thing we believe must stop as well. And the shortfall of Soviet funding. The PLO is said ets are the only ones involved. We have evi­ Afghan people, the Freedom Fighters of Af­ to get funds from other countries in the dence that North Korea trains terrorists. ghanistan, are resisting that kind of terror­ world. Libya. And I don't know what the So, in some other places-in Libya-where ism. budget process of the PLO is. And it may be we understand that recently terrorism has It doesn't necessarily just mean putting a that the case may be made for a minimal been elevated to the Ministry-the level of bomb in a bus or in a building. You can Soviet involvement in PLO organization Ministry. This is very important. Many stu­ have organized terrorism. Hitler's hordes itself. dents are being taken out of Latin America are a case of organized terrorism against the But, nonetheless, that identity of purpose, and given scholarships in Eastern Europe­ world. that agreement as to the justness of revolu­ Germany, Czechoslovakia. These countries So, we do have to find ways, means to do tion and terror as an instrument of revolu­ are all hosts to facilities which tum out ter­ something about it, to organize ourselves, to tion, is an inherent part of Marxist-Leninist rorists and there's no doubt in my mind, combat it, and it's very, very difficult. ideology. and, as I say, I'm perfectly prepared to Q. Hasn't terrorism worked for a group Q. Is it fair to call the PLO a terrorist or­ argue that case in a public forum and I wel­ like the PLO though? Haven't they man­ ganization? come this opportunity to at least present aged to pull themselves up by their boot­ A. Let me say it this way; we have said, my point of view on it. straps into some kind of very legitimate the President of the United States has said Q. No doubt whatsoever that the Soviet world place right now? Arafat got into the repeatedly, that there are two main condi­ Union is organically involved? United Nations. Over one hundred nations tions that are obstacles to discussing any­ A. There's no doubt in my mind, no sir. recognizing them as the legitimate repre­ thing with the PLO. But, on the other hand, as I say, it's very sentatives of the Palestinian people. Hasn't One is its practice of terrorism and its difficult for me at this stage to provide you terrorism worked for the PLO? condoning of international terrorism. And with overwhelmingly convincing evidence. A. Accepting the premise then that the second, of course, is the refusal to recognize Q. One of the problems with the current PLO is a terrorist organization, under these the right of Israel to exist. struggle with the Mid-East is that there circumstances, I would say perhaps it has. Absent those two conditions, we'd be deal­ seems to be some moral ambiguities now; it And that's to my chagrin. ing with a fundamentally different situa­ isn't just one side using weapons that hurt Q. You say accepting the premise? tion, so the President has said. I think, yes, innocent people it seems. Do you agree with A. Well, I say, you said hasn't terrorism on balance. There's no question that we that, or do you think that terror or innocent worked? Hasn't the PLO pulled itself up by must identify the PLO as a terrorist organi­ people being hurt is strictly a one-way street its bootstraps? My response is obviously the zation, until it provides evidence to the con­ in the Mid-East? premise behind that is the question that the trary. A. Well, I think that the use of terror, PLO is a terrorist organization. Q. Of course, they have moderated their under any circumstance, globally, whether Q. You're not clear that the ... statements within the last year or so. it comes from the right or left, is something A. I'm quite clear. I'm now reinforcing A. Again, you say they. They are factions that the United States condemns vigorously. your own clarity, because you asked the of the PLO and one hears a spokesman on That could be true in Central America, as question in a slightly different way just a the one side. I've heard descriptions that true as it is in a place in the Middle East. In few moments ago. identified Arafat as a moderate. But we're the Middle East, one takes Lebanon as an Q. I didn't mean to be semantical. certainly wanting in hard proof that this is example. There's so much going on in Leba­ A. Of course, the one advantage you have, the case. non that it's very, very difficult to sort it you've got the scissors. One man's moderate ·is another man's ter­ out from time to time. Q. I'll definitely cut that out. rorist. The public impression is very confused A. Of course. I'll have a press conference Q. If the PLO as presently constituted and hazy I find, at least in my discussion the next day. does become the government of an inde­ with public people. We've become so con­ Q. In your definition of terrorism, bearing pendent Palestinian state, what would the fused and, I think in some ways, so demoral­ in mind that terrorism can be an organized relevance be then of the Soviet connection? ized by this avalanche of information about thing, and you also say that a state has a le- April 9, 1981 EXTENSIONS OF REMARKS 7217 gitimate right of self-defense, and, of terror network, is the concept of detente a the Omaha World Herald. In a broad course, it does. But within the context of fraud? sense the editorial addresses an issue that statement of fact, are the Israeli air A. Well, I don't agree under any circum­ my colleagues and I continually face: raids into South Lebanon acts of terrorism stance that the concept of detente · is a or are they acts of legitimate self-defense? fraud. If you meant as a specific policy, I the role of special interest groups in A. I don't want to get into a specific policy don't consider detente to be a policy. I con­ our democracy. I know my colleagues discussion here, and what I'm saying does sider it to be a means to an end. It means re­ are receiving the same volume of mail not represent the, I emphasize, the official laxation of tensions in whatever language I am on the issues of providing mili­ policy of the United States Government, you're using. Detente, entspannung, in tary aid to El Salvador. I believe they, but to the extent that one reaches to the German, just means relaxation of tension. too, will find the viewPoint expressed source of terrorism then, of course, there is Some of the delusions of detente have in the editorial helpful as they consid­ ample justification for taking actions. been demonstrated to be, not a fraud, just er their responses. However, I'm not going to judge in a blan­ wrong. Some of our own assumptions that ket· way those particular actions to which building bridges to the Soviet Union, which I insert the text of the editorial at you are saying now. I'm just saying that in itself is not a bad idea, would bring about this point in the RECORD: reaching to the source is generally recog­ a better understanding and, therefore, per­ [From the Omaha World Herald, Mar. 29, nized as hot pursuit of a sort and, therefore, haps a lessening of the Soviet momentum in 1981] justified. At least it's . . . At least there"s a the arms build-up, or for whatever the pur­ EMOTIONAL CAMPAIGNS SHOULDN'T SHAPE question there. pose of Soviet behavior we might want to FOREIGN POLICY Q. There is no question in some of the alter. It's been demonstrated to be wrong. acts; there is no question in many of the We now are confronted with a tremendous Letters opposing military aid to El Salva­ acts perpetrated by the other side against arms build-up that continues. The most im­ dor are being sent to members of Congress. Israel. portant arms build-up in the history of The volume should not be surprising when A. It is my understanding that Israel mankind is what we are now experiencing in one considers the campaigns organized by exists with defined boundaries. Some of the world. And we have to ask ourselves the pacifists and some religious groups to pro­ those boundaries are obviously subject to question, Is this the representation of terror duce it. dispute. But, in Israel proper, there have in itself? While Roman Catholic leaders appear to been repeated acts of, if you will, forcible We speak of the balance of terror. We've have taken the lead, a number of Protestant entry into Israeli space, violating Israeli sov­ sought to avoid that balance of terror by ne­ leaders have been urging a joint campaign ereignty. Hostages taken and murders com­ gotiating arms control agreements at the to change U.S. policy. President N. William mitted. Now, I don't think reasonable super-power level. And it seems to be no re­ Howard of the National Council of people have much difficulty in understand­ duction. We've stood still; we haven't in­ Churches said in a letter to communion ing that someone who comes from outside, creased our arsenals; we haven't increased heads: invades for the purpose of terrorizing and our defenses; we have allowed, in fact, our "We envision a significant campaign murdering, is anything less than a terrorist. defenses to decay, to erode. And the other which we expect to center on massive activi­ I think there is a broad understanding in side continues to pump out that material. ties during Holy Week." the world. For what? The tone of the campaign is reflected in a The Israeli people, you are focusing here The Soviet Union has accumulated weap­ press release on a statement from the on the Middle East, have been the victims, ons far exceeding it's defensive require­ United Presbyterian Church which says the people of Israel. Especially those who ments, and now confronted us with this that expanding military commitment by the came from Central Europe. They have been massive military build-up. So, we have to be United States to El Salvador is "threatening the victims of organized terrorism. They are very careful; we have to be able to respond. the integrity and civil order of the U.S." highly sensitized to this phenomenon, and The purpose of our accumulation of arma­ Those are strong, emotional words. until they have some means of assurance in ments is to deter a war and to fight success­ If our civil order were being threatened, knowing that they're not going to be subject fully any war that we're not able to deter. and we don't believe that it is, might it not to that form of terrorism for a long period Q. Is the PLO the major organization, the be stirred by extreme statements like that? of time, they're going to be very leery. major vehicle, for spreading terrorism being Locally, a newspaper advertisement by the Again, I want to emphasize this is not a used by the Soviet Union now? Omaha Solidarity Committee for Central statement of public policy on the part of A. Probably not. My own estimate is that America addressed an open letter to Presi­ the United States. You are addressing me in there are many, many instrumentalities, the dent Reagan. It was signed by scores of an individual capacity, and I'm giving you spread of , Izola May phone. Pamela Nelson, 11th-trumpet. McMillen, Elizabeth Osborne, Richard Os­ standing corps of marching bands Greg Newton, 11th-bari saxophone. borne, Cindy Pacifico (drill team instruc­ from a great many schools. I am espe­ Bruce Nissley, lOth-trumpet. Tracy Niss­ tor), Helga Patcheak, Jim Strati, Joan cially proud that the Concord Commu­ ley, 9th-drill team. Paul Ochs, lOth-per­ Strati, James Taylor and Joyce Taylor. nity High School "Giant Marching cussion. Michael Osborne, 12th-percussion. John Thompson, Marie Thompson, Mary Minutemen" Band of Elkhart, Ind. Russell Parish, 11th-trombone. Mark Pat­ Ann VanderReydeb, Chuck Warfel, Gene played such an important role in the cheak, lOth-baritone. Ritchie Patel, 9th- Warfel, Pat Warfel, Jani Weaver, Nancy April 9, 1981 EXTENSIONS OF REMARKS 7219 Weaver, Roger Weaver, David Weirich , a Libertarian think­ STUDIES-PART III dangers of nuclear energy, agribusiness, sur­ tank. Kaplan is the Legislative Assistant to face mining, and more recently, articles at­ Rep. Les Aspin, a member of both the tacking anti-Soviet foreign policy advisors House Armed Services and Intelligence HON. LARRY McDONALD of the Republican presidential nominee. Committees. OF GEORGIA These articles are then published in Mother IPS reacted frenetically against demands IN THE HOUSE OF REPRESENTATIVES Jones, a glossy, mass-market magazine by Congressional and other American lead­ Thursday, April 9, 1981 which enjoys an obvious competitive edge ers for a U.S. military buildup following the over its commercial rivals in that it pretends collapse of Iran, the seizure of U.S. hostages e Mr. McDONALD. Mr. Speaker, this to be .an educational "journal" of the FNP and the Soviet invasion of Afghanistan. continues with the very important and and can receive subsidies from foundations. IPS called a number of conferences to in­ informative coverage for my col­ In 1979, the FNP received $35,000 from the fluence legislators on Capitol Hill and to leagues on the matter of the Institute Samuel Rubin Foundation and $3,000 from bring together and coordinate "U.S. and Eu­ for Policy Studies, and their interna­ the Fund for Tomorrow. ropean experts." One on March 14-15, 1979, tional project, the Transnational Insti­ IPS has three major program areas-do­ on Capitol Hill, was co-sponsored with the mestic public policy, national security and Coalition for a New Foreign and Military tute and Americans for Demo­ Part III, for the information of the nomic order and human rights. cratic Action . This was followed on House, will provide information on the DOMESTIC PUBLIC POLICY October 18-20, 1979, with a meeting orga­ funding of the Institute for Policy In October 1979, IPS's National Confer­ nized by the IPS/TNI of "thirty researchers Studies and the TNI. It will also deal ence for Alternative State and Local Public and organizers from the U.S. and Europe"; with their activities in areas of nation­ Policies directed by former Stu­ and a public meeting in Washington, D.C. al security and foreign policy. Once dents for a Democratic Society leader Lee on March 18, 1980, titled "Energy and the again, as a service to my colleagues Webb was independently incorporated New Cold War." In this meeting, Barnet and the public in general. I consider under Webb, now an IPS trustee, as the urged the United States to stay out of the Conference on Alternative State and Local Persian Gulf and not increase its military this of paramount importance, and strength to avoid "provoking" the Soviets. therefore wish to continue this contri­ Policies . headed by Lewis Clark and nology to police forces and governments for 1978 and 1979, and a lesser $25,000 grant Tom Devine, . encourages government em­ cited for human rights abuses." The IPS for IPS's projects. ployees to "leak" information about pro­ project "maintains a data bank for use by Additional funding has come from a number of liber­ prove, with an emphasis on getting employ­ Under the subheading "area crisis stud­ al and left-oriented foundations such as the ees of the FBI and CIA to provide informa­ ies," IPS/TNI fellows "provide expertise on Field Foundation, the Stern Fund, and what tion on intelligence activities. This is sup­ the local political and economic dynamics seexns to be merely another conduit for ported by a law student clincial program often slighted in global national security Rubin Foundation money, the Fund for To­ with students at Antioch Law School to per­ calculations, and pose basic questions about morrow which is controlled by Peter and form legal case work for "whistleblowers." whose security interest is at stake, and Cora Weiss. whether and how to protect it." What this It has been the practice of IPS to encour­ NATIONAL SECURITY AND FOREIGN POLICY rhetoric truly means is shown in the con­ age its more viable projects to "spin-off," in­ Termed by IPS the "centerpiece" of its ac­ tent of IPS's "crisis area" writings. corporate separately, and raise their own tivities, this program has a simple theme: In 1979-1980, the key "crisis areas" for funds. For example, the IPS/TNI World world tensions are the result of American IPS were Afghanistan and Central America Hunger Project headed by Richard Barnet intervention, economic or political, in other and the Caribbean. Articles and speeches on and Joe Collins has evolved into the Insti­ countries; and Soviet aggression and mili­ these areas were produced by Fred Halliday, tute for Food and Development Policy in tary buildup are the inevitable, if unfortu­ Eqbal Ahmad, Michael Moffitt, Isabel Lete­ San Francisco. Under co-directors Francis nate, reactions to U.S. aggression and would lier, Michael Klare, and Saul Landau. The Moore Lappe and Joseph Collins, it received stop if the United States were to return to a articles included support for the Communist $10,000 from the Samuel Rubin Foundation "fortress America" isolationism. Barnet and puppet regime in Kabul [it wants to carry in 1979. other IPS leaders salt their writings with out land reform and educate women], shrill Other IPS spin-offs retain more tangible mild criticisxns of the USSR as dangerously attacks claiming the United States and CIA relationships with their parent. When the prone to harsh overreaction to American were "destabilizing" the pro-Soviet govern­ Cambridge Institute for Policy Studies "provocations." They use this to argue for ments in Grenada, Nicaragua and Jamaica founded by IPS fellows Gar Alperovitz and U.S. appeasement. and recommendations that the United Christopher Jencks split up in the mid- Titles of recent IPS publications under States do nothing to aid Afghani resistance 1970s, IPS came in to co-sponsor the Cam­ this program include Fred Kaplan's "Dubi­ fighters by trade cuts with the USSR or any bridge Institute's journal, Working Papers ous Spector: A Skeptical Look at the Soviet other method. for a New Society, with which Barnet, Nuclear Threat"; Alan Wolfe's "The Rise Raskin and a variety of IPS veterans remain and Fall of the Soviet Threat"; an attack on INTERNATIONAL ECONOMIC ORDER AND HUMAN associated. the U.S. intelligence agencies by Saul RIGHTS Another of these is the Foundation for Landau and John Dinges in their account of Projects have included a two-year study National Progress . According to its the overthrow of Allende and the murder of by IPS/TNI research groups in the United 1976 financial report, "FNP was formed in KGB agent of influence Orlando Letelier, States, England, France, West Germany and 7220 EXTENSIONS OF REMARKS April 9, 1981 Japan of the nuclear power industry. Ac­ Marcus Raskin served in the Counter-Spy Radoumis who, quietly but thorough­ companying this study have been IPS/TNI advisory board from 1974 through th,e end ly, get thin($ done.e sponsored meetings of anti-nuclear activists of 1976, during the period that Philip B. F. from the United States, Australia, Holland, Agee also served in various capacities with Denmark and other countries focusing on Counter-Spy. In 1977 when Agee was de­ uranium mining. ported from England .on account of his con­ JOHNS HOPKINS STUDY SITES tinuing contacts with Cuban intelligence of­ JOB PLACEMENT SUCCESS FOR IPS TRANSNATIONAL CETA WORKERS IPS's international project, the Transna­ ficers, the Netherlands Radio Handelsblad tional Institute operates programs in reported his entry into Holland had been se­ cured through the IPS Transnational Insti­ Washington, D.C., London and Amsterdam. HON.AUGUSTUSF.HA~NS IPS's latest annual report notes two major tute. seminar series at the TNI offices in Amster­ IPS/TNI has also played a leading role in OF CALIFORNIA dam, the Samuel Rubin Seminars on revo­ coordinating the international drive to stop IN THE HOUSE OF REPRESENTATIVES luntionary activities in the Third World, uranium mining in the Free World by utiliz­ and the Orlando Letelier Seminars on ing various land and sovereignty claiins of Thursday, April 9, 1981 "North-South Dynamics." ti"ibal groups. For example, a March 18-19, 1980, meeting of the TNI Uranium Mining • Mr. HAWKINS. Mr. Speaker, one of Among the Rubin seminars and their lead­ the main justifications given by the ers were: Working Group had panelists from the Southern Africa-Ruth First and Basker United States, Australia and Greenland administration for the elimination of Vashee. Vashee is the current TNI director, along with participants from Holland and public service employment under and was the European representative and Denmark.e CETA is that PSE does not lead to un­ executive committee member of the subsidized employment. In testimony Moscow-dominated terrorist Zimbabwe Afri­ before the Education and Labor Com­ can People's Union . One Ruth First JAMES RADOUMIS-KERN mittee, Secretary of Labor Donovan and her husband Joe Slovo became mem­ COUNTY'S NUMBER ONE FAN reiterated this old theme. Yet witness bers of the Central Committee of the South after witness came before the Educa­ African Communist Party in No­ vember 1962. First and Slovo have been pub­ HON. WILLIAM M. THOMAS tion and Labor Committee with evi­ licly named by South African government OF CALIFORNIA dence that the experience gained officials as living in Maputo, Mozambique, under CETA provided valuable entry where they act as liaison between the SACP IN THE HOUSE OF REPRESENTATIVES into private sector jobs. The Depart­ and the terrorist forces of the African Na­ Thursday, April 9, 1981 ment of Labor has chosen to ignore tional Congress. e Mr. THOMAS. Mr. Speaker, I would this cumulative evidence and has also Southeast Asia-Anthony Barnett, Ngo ignored study after study indicating Manh Lan and Ben Kiernan. like to pay a brief tribute to a man Revolutions in the Islamic World-Fred who has contributed fully 40 years of post-program gains from CETA par­ Halliday, Nico Kielstra and Bafher Moin. his life to the betterment of his com­ ticipation. Post-Colonial Systeins of Power-Eqbal munity. This man, James Radoumis, recently Ahmad, an associate of the current has promoted the virtues of Kern concluded a followup study of individ­ Counter-Spy magazine and veteran IPS/ County, Calif., since 1941 as director uals who participated in public service TNI "counter-counter-insurgency specialist" employment in the Baltimore area and A. Sivanandan. of Kern's Chamber of Commerce and Latin America-James Petras, a veteran later its board of trade. under CETA. The finding of this study supporter of the Cuban revolution who first James Radoumis has helped in the clearly substantiates the value of the came to note in the early 1960s as head of progress of Kern County, and he has CETA experience. The testimony of the Young Socialist Alliance chapter insured that millions of people Dr. Laura Morlock, director of the in Berkeley. throughout the United States have Johns Hopkins study, before the Edu­ Feminism and Socialism in the Third cation and Labor Committee follows: World-Maxine Molyneux and Stephanie become familiar with the people, the Urdang, a veteran member of the Southern land and the prosperity of Kern The major findings who put out a fact of which many in his communi­ sample who were not employed and who the first copies of the original Counter-Spy ty are unaware. were looking for work declined steadily over magazine, together with radical philanthro­ Because Mr. Radoumis has never the five-year follow-up, from 26% searching pists and Norman Mailer's Fifth Estate sought the spotlight, the proper credit for employment one month after termina­ project. The result was to transform the which is due him for his achievements tion to 6% looking for work five years after Committee for Action/Research on the In­ on behalf of Kern County has not program participation. telligence Community , on the occasion of his 40th year of when the average rate of unemployment in publishers of Counter-Spy. [See "Broken service to Kern County. It is hearten­ the Baltimore metropolitan area was in­ Seals" by Western Goals Foundation] ing that there are still people like Jim creasing for the labor force as a whole. April 9, 1981 EXTENSIONS OF REMARKS 7221 This analysis indicates that after adjust­ the American Army would arrive. MARCH 29, 1981. ing for changes in the Consumer Price During that time when no hope came, Representative PAT WILLIAMS, Index, individuals averaged a 16% per hour there was a barracks ballad that was Montana Western District, increase over their pre-program job, and a sung to ease the frustration. It went: Longworth Building, Washington, D.C. 93% per hour increase from their pre-pro­ DEAR REPRESENTATIVE WILLIAMS: I'm writ­ gram position to the job they held at the We are the battlin' ing in regards to a matter of great concern time of the interview. bastards of Bataan. to me; and many other wives; the plight of A major finding of the study, is that com­ No mama, no papa, the Americans who were POW's, especially parisons of short, of intermediate and of and no Uncle Sam. those who were interned by the Japanese. long-term outcomes indicate a steady in­ It was almost 3 years to the day that Those especially, one of them being my hus­ crease over time both in employment levels band for over 34 years. They truly need and in wage rates. This suggests that reli­ the Japanese held the Philippines and help. I watched the look and hurt in his ance on the short-term indicators of pro­ before help finally arrived, April 1945. face, mixed with joy when our hostages gram impact may seriously understate the In May 1970 a concerned Congress were released on January 20, 1981. There employment and the wage levels of individ­ passed Public Law 91-376, recognizing was no one, much less any fanfare to meet uals after participation in the public service that past prisioners of war, like the the boats when they docked in San Francis­ employment.e men of Bataan, suffer a wide range of co in October 1945. They were wisked off to long-term effects because of their cap­ Letterman General Hospital, a quick physi­ tivity. At that time, as the long list of cal and sent home, after 39 mos. as a POW, BATTLIN' BASTARDS OF BATAAN they were anxious to see loved ones, not diseases and medical problems were thinking about the future, they went. HON. PAT WILLIAMS read, there was a great deal of sympa­ I could make a long list of ailments, thy, soon forgotten. These men making these relatively young men, old men OF MONTANA became prisoners of a problem about bodily wise. They are listed in the VA study IN THE HOUSE OF REPRESENTATIVES which no one seemed to want to know. done called "POW Study of Former Prison­ Thursday, April 9, 1981 In March 1979, the Honorable BILL ers of War'.'-Public Law 95-479. I would YouNG from Florida had inserted in like to see action taken on this study, and e Mr. WILLIAMS of Montana. Mr. cannot understand why there hasn't been, Speaker, 10 hours after Pearl Harbor, the RECORD his support of ex-POW's after spending $335,000. What a waste! the Japanese invaded the Philippines. and also a letter from Gen. Delmar T. Most urgently needed are Doctors in the The Philippine and American Forces Spivey, retired, that discussed a report VA facilities who are learned and knowl­ were badly outnumbered and poorly by the National Medical Research edgeable as to the conditions of my husband armed. The Japanese pushed the Committee for American Ex-Prisoners and his fellow X-POW's. Some of these Allied Forces down the Bataan Penin­ of War. In that report the commission people, supposedly there to help them, noted: don't know what or where Bataan and Cor­ sula, but always with fierce resistance. regidor is, much less what went on there For the grim months that followed, an We have found that many times Public and following. They have no idea of the de­ underarmed, half-starved army held Law 90-376 is not being enforced by the VA layed reactions these men are suffering and tenaciously the hope that help would and that the spirit of the law is interpreted experiencing. I understand a very inform­ arrive. These fighting men held the by the VA for its benefit and not that of the ative and extensive study was made, "Cor­ veterans, in fact, many times they must nell Medical Index" which shows that the distinction at that time of being the prove they were prisoners of war. As of now only American Forces fighting the Japanese-held POW's are suffering far more 33 years later, they must prove for some than others from different theatres of war. enemy in the field, anywhere in the reason that they did indeed suffer from the I truly cannot understand that our Govern­ world. There was little hope. very disease Congress recognized in Public ment does not recognize and do something For 27 days after the fall of Bataan, Law 91-376. Their concerns are met with about this study. The Canadian Govern­ the Allied Forces clung to their last "subject of remote memory" and "not ad­ ment does and has gone all out to help their hope, the impregnable fortress off the missable." men. Bataan Peninsula-called Corregidor. Still they waited, the men of Bataan, I also think it is very sad that the treat­ In the grand scheme of the Second only now it is their families that ment is not equal from state to state, when World War, these brave men held the waited with them. we lived in Michigan and Lew went to the VA Hospital in Allen Park . that may very well explain some

79-059 0 - 84 - 10 Pt.6 7222 EXTENSIONS OF REMARKS April 9, 1981 of these unidentified ailments so many of week and flextime are permitted. draconian erosion of State sovereign­ those men are now experiencing. We under­ Some employers and employees have ty, 17 years have passed and, in my stand it is classified as "Top Secret"-My agreed to go to the 10-hour, 4-day judgment, such a demeaning process is God, why!!! This is so important for us to know so they can get adequate treatment. workweek. Others have opted for four no longer appropriate. In September 1980 the Mr's Rodriquez, 9-hour days and one 4-hour day. The According to a March 9 article in the Yeats and Whitten held a seminar here in arrangements come in a variety. New York Times, the Justice Depart­ Missoula at the University. It was very ex­ Thousands of firms have made the ment has objected to less than 3 per­ tensive, informative, and so enlightening change, as have many State and local cent of the 33,000 changes submitted and helpful. Some of the problems I've had governments. Even Federal agencies for review since 1965. Last year it ob­ with Lew these 34 yrs. are experimenting with it. jected to 44 of the 5,800 changes that I now know I am not alone, after hearing The results suggest that flexible other wives express some of the same, that hours often increase output, reduce it reviewed. does help. Believe me, these men are differ­ absenteeism, and lower turnover. Em­ On the other hand, the right to ent from our civilian friends. I would like to ployees report they are cutting down vote-including the right to have your see these seminars held in regions and spon­ vote counted-is our most precious po­ sored with the help of the Government. on their gasoline consumption, com­ These three young men did a fantastic job. I muting fares, lunch money, and child litical right, and it would be helplessly can't begin to praise them enough, any who care expenses as well as having more naive to assume that everyone's voting were there will agree with me wholehearted­ leisure time. rights are effectively observed every­ ly. It is very heart warming to see such dedi­ Under the procurement law, pay­ where and always. cation from these men of a younger genera­ ment of overtime rates begins after 8 I propose, therefore, to renew the tion take such deep sincere concern for our hours in any 1 day. As a consequence, Voting Rights Act of 1965 by amend­ "men". These men are undaunting in their working under contract with the Fed­ efforts to seek information to help and aid. ing section 4 to eliminate the language They need some financial help. eral Government denies contractors whereby these nine Southern States I understand there are possibly 242 X­ and their employees the right to ar­ were treated less than sovereign, and POW's in Montana and only 151 are getting range flexible working hours without by amending other appropriate sec­ any compensation, I'm sure it is the same in substantial penalty. The penalty, of tions to provide that the Attorney all the other states. Can't begin to tell you course, would be passed on to the con­ General may bring an action-or inter­ the number of X-POW's that we've in­ sumers and taxpayers. vene in private actions-anywhere in formed what VA help is available to them, Our bill does not mandate change. It the country where a "widespread pat­ and of the organization, the "Am X-POW's" merely permits Federal contractors and the "American Defenders of Bataan tern or practice" of voting rights abuse and Corregidor" the latter, cannot get any and their employees to select the com­ is found. Should the complaint be larger, it can only get smaller in numbers. bination of hours in a 40-hour work­ upheld, then the "pre-clearance" pro­ In fact this past week a fellow barracksmate week that best suits them. cedures now in the act would apply to from Mukden called Lew from St. Regis Without a penny of cost to taxpay­ the offending jurisdiction for 4 years. after seeing an article in the Missoulian. ers, we can boost the morale of mil­ The point is that denial of voting He's joining the groups and hopefully will lions of workers while saving energy, rights can occur anywhere-not just in make it to the National Convention of consumer costs, and tax dollars. We, "ADBC" in Las Vegas, April 26-May 1, 1981. therefore, urge prompt and favorable a few specified locations-and the ex­ Once a X-POW gets his disability, it is left perience of the last 17 years no longer there, no mention of treatment for any of consideration of this legislation.e justifies treating the nine Southern their ailments. We desperately need region­ States and their political subdivisions al treatment centers, could be within the any differently from the rest of this VA facilities. We were very fortunate to VOTING RIGHTS ACT country. have a wonderful family Dr. in Michigan who put Lew on treatment and informed us AMENDMENTS OF 1981 Another significant change I pro­ the VA would supply his medication, which pose will update and expand coverage he has to keep near him always. Our Dr. HON. HENRY J. HYDE of the act beyond proscribing voting here in Missoula is also great, to help and OF ILLINOIS qualifications standards or procedures he recognized the effects of Lew's intern­ IN THE HOUSE OF REPRESENTATIVES which deny or abridge the rights of ment as to his health now, as did the Dr. in any citizen because of race or color to Michigan. Why doesn't the VA? Thursday, April 9, 1981 In closing Pat, I thank you very deeply for include those voting qualifications • Mr. HYDE. Mr. Speaker, today I standards or procedures which are for all your help and deep concern. It is appre­ have introduced legislation entitled ciated. Many thanks.e the purpose or with the effect of deny­ the Voting Rights Act Amendments of ing or abridging a citizen's rights. 1981. FLEXIBLE WORKING HOURS One of the most important and con­ Thus the addition of an ·effects test troversial decisions this Congress must broadens the scope and coverage of HON. JOHN N. ERLENBORN face is whether to renew the Voting the legislation. Rights Act of 1965. Both sides of this Lastly, there is another section of OF ILLINOIS the present law that has stirred emo­ IN THE HOUSE OF REPRESENTATIVES issue feel deeply, and there is consider­ able merit to their opposing argu­ tions-the single-language minority Thursday, April 9, 1981 ments. provisions requiring bilingual ballots e Mr. ERLENBORN. Mr. Speaker, For example, under the definitions in certain prescribed circumstances. the gentleman from North Carolina of the act, nine Southern States-and These provisions do not expire until of the Voting Rights Act of 1965 is amended- HON. CLAUDINE SCHNEIDER The Supreme Court reviewed the weight OF RHODE ISLAND of this Section in its 1980 decision in City of (1) by striking out "If" and inserting "In" in lieu thereof; and IN THE HOUSE OF REPRESENTATIVES Mobile, Alabama, et al. v. Bolten, et al., - <2> by striking out "or an aggrieved person U.S. - Section 4 of the Voting ty provided under the Department of that need be proved. by striking out "on account of race or have voted "yea."e Section 3. This Section empowers a feder­ color, or" each place it appears; and al court, consistent with language contained in proposed Section 12(g), to require pre­ by striking out "the third sentence clearance of any jurisdiction in the country of"; HOW CETA AND VOCATIONAL <3> in the sentence beginning "The court EDUCATION WORK IN KEN­ for a period not to exceed four years. The shall retain jurisdiction" by striking out "on use of this remedy would be subject to a account of race or color, or"; TUCKY finding of a "pattern or practice" of voting ( 4> by striking out the first sentence be­ rights abuse. "Pattern or Practice" is de­ ginning "If the Attorney General deter­ fined In U.S. v. Mayton, 335 F. 2d 153, 158- HON. AUGUSTUS F. HAWKINS mines that he has no reason to believe"; and OF CALIFORNIA 159 (1964). (5) in the second sentence beginning "If Section 4. This Section amends the trig­ the Attorney General determines that he IN THE HOUSE OF REPRESENTATIVES gering mechanisms contained in Section has no reason to believe"- Thursday, April 9, 1981 4(a) and Section 4(b) of the Act. These by striking out "on account of race or mechanisms are complex, and apply princi­ color, or"; and e Mr. HAWKINS. Mr. Speaker, while pally to jurisdictions which, on November 1, by striking out "the second sentence the new Secretary of Labor keeps 1964, maintained "tests or devices" designed of". saying CETA provides only dead-end, to abridge the right to vote on account of Section 4(b) of the Voting Rights Act make-work jobs, evidence abounds race or color only. Though the Act does not of 1965 is amended- that such is the exception, not the refer to a specific date, it does refer to a sev­ <1) by striking the first two sentences; and enteen-year term. Seventeen years from general rule. Significantly, such critics (2) in the third sentence by striking out see nothing wrong in pushing CETA August, 1965, ends in August, 1982. Any ju­ "in addition to any State or political subdi­ risdiction which maintained such a test or vision" and all that follows through "the enrollees onto welfare or unemploy­ device in . 1964, and in which less than 50 previous two sentences, the provisions of". ment compensation where no produc­ percent of those of voting age were regis­ Section 4(f)(4) of the Voting Rights tive work is performed. tered as of that date, are required to for­ Act of 1965 is amended by striking out "the The falsity of this myth is ably an­ ward changes in their voting laws to Wash­ second sentence of". swered by Mr. Steven L. Zimmer, ington in accordance with Section 5. SEc. 5. Section 5 of the Voting Rights Act CETA director for the Louisville-Jef­ Proposed Section 4 would eliminate the of 1965. is amended by striking out "When­ trigger for all except those jurisdictions af­ ferson County consortium in Ken­ ever a State" and all that follows through tucky. Excerpts from his testimony fected by the language minority provisions "based on determinations made under the passed in 1975. Since these provisions do not third sentence of section 4(b)" and inserting before the Education and Labor Com­ expire until 1985, and are therefore not nat­ in lieu thereof "Whenever a State or politi­ mittee on March 14, 1981, follow: urally subject to renewal in 1982 as are the cal subdivision with respect to which the Today I would like for us to consider the other provisions of Section 4, my bill leaves prohibitions set forth in section 4(a)". progress which we have made in developing them in place. SEc. 6. Section 12 of the Voting Rights Act effective linkages between CETA and our Section 5. Once again, this Section modi­ of 1965 is amended by adding at the end the educational institutions-especially the fies language in Section 5 of the Act in such following: progress made in reducing unnecessary du­ a way as to require preclearance provisions "(g) Whenever the Attorney General has plications and creating cost-effective serv­ only in cases in which the language minor­ reasonable cause to believe that any person ices to young people and adults. The CETA ity trigger is activated. or governmental entity or group of persons program in Louisville and Jefferson County Section 6. This Section adds new subpara­ or governmental entities is engaged in a to existing Section 12 of widespread pattern or practice which has participants annually in occupational class­ the Act. According to the provisions of pro­ the purpose or effect of denying the full en­ room training. At present we do not have posed subparagraph (g), the Attorney Gen­ joyment of any of the rights granted or pro­ the capability to provide enough training eral would have "widespread pattern or tected by this Act, or that any group of per­ slots in vocational education for CETA par­ practice'' jurisdiction to bring a civil action sons has been denied any of the rights ticipants currently enrolled in the system to protect rights guaranteed by the Fif­ granted or protected by this Act and such ... Last year, in evaluating our program, teenth Amendment and Section 2, if amend­ denial raises an issue of general public inter­ we discovered that occupational classroom ed as proposed. est, the Attorney General may bring a civil training is the most effective activity for Proposed subsection would permit the action in any appropriate United States dis­ placing CETA-eligible participants into jobs. Attorney General to intervene in private ac­ trict court by filing with that court a com­ There are several myths concerning tions designed to protect rights guaranteed plaint setting forth the facts and requesting CETA/Public Service Employment which by the Act. such relief, including relief under section are being perpetuated by the Administra­ 3(c) of this Act, as the Attorney General tion and the national press: H.R.- deems necessary to assure the full enjoy­ The first myth is that CETA provides A bill to amend the Voting Rights Act of ment of the rights granted or protected by only dead-end, make-work jobs which pro­ 1965 this Act. vide no opportunity for advancement or 7224 EXTENSIONS OF REMARKS April 9,. 1981 skills training. Our Parks Department expe­ and member of the House Vietnam gation and Research for the commission. rience demonstrates the falseness of that Veterans Caucus, I was proud to co­ Bertrand submitted the report on February perception. I believe that any job which im­ sponsor this resolution recognizing the 27; it was released to the public on March 4, proves basic job-keeping skills and teaches and your staff received a copy of the seven­ good work habits is beneficial, and increases more than 8 million Americans who volume report late last week. A number of the productivity of the American work served during the Vietnam era, almost elements in the report appear to be quite force. In addition, our program has made an 3 million of which actually served in germane to the gasoline marketing issues effort to link adult basic education with Vietnam. now pending before the Subcommittee on Public Service Employment. All PSE job Many of these people have success­ Energy, Environment and Safety Issues M­ holders are tested and basic education is fully adjusted to civilian life, but fecting Small Business. made available to them. In FY80, almost 25 many have not. The statistics are truly Perhaps of greatest relevance is the Ber­ percent of our PSE participants who were frightening. For example, the overall trand report's recommendation that the high school drop-outs reached the G.E.D. suicide rate of Vietnam era veterans is major integrated oil companies in Canada achievement level. Therefore, participants be required to divest themselves of some of learn work skills, provide valuable public now about 23 percent higher than that their marketing operations, in order to services, upgrade their basic educational of nonvets of the same age. An esti­ foster greater competition at the retail level skills and are more employable. mated 500,000 Vietnam era veterans of the industry. The report also recom­ The second myth is that PSE jobs do not are presently in criminal custody. And mends that the government provide finan­ have a counterpart in the private sector. of all outpatients in the VA drug treat­ cial assistance to service station dealers who This too is false. In our program 46 percent ment program, 55 percent are Vietnam seek to acquire divested facilities. . . . of all PSE participants entering ~mploy­ In its introduction, the Bertrand report ment in FY80 obtained jobs in the private veterans. A resolution such as this one is obvi­ notes, "There are a number of parallels be­ sector. tween the Canadian petroleum industry and The third myth is that all PSE jobs are in ously not the solution to the very dif­ the industries in the United States and government. This too is false. Over 60 per­ ficult problems facing a large number other countries." The oil companies that cent of the PSE positions for this Fiscal of Vietnam era veterans. That solution dominate the Canadian market all are sub­ Year were allocated to non-governmental will come when we assume that re­ sidiaries of companies that have very sub­ agencies. Participants in these programs not sponsibility for these individuals stantial U.S. operations-Exxon, Gulf, Shell only learn valuable work skills, but also pro­ and Texaco. · vide important public services. which is rightfully ours. Clearly, we The fourth myth is two fold: that all PSE owe them this day of recognition and Market concentration is much greater in participants are eligible and receive unem­ much, much more.e Canada than in the United States. The ployment insurance benefits and that the report alleges that the major oil companies elimination of PSE will save federal dollars. engaged in a deliberate policy of unfairly Not all PSE participants are eligible for CANADIAN STUDY FINDS MAS­ eliminating their independent competitors benefits if they work for an exempt agency. SIVE ANTITRUST VIOLATIONS through manipulation at all levels of the pe­ Also, CETA serves the long-term unem­ BY OIL COMPANIES troleum industry-crude oil, refining, pipe­ ployed, and the level of benefits, if any, for line transportation and retailing. which laid-off participants are eligible are HON. BERKLEY BEDELL The Canadian report says that the major limited. Unemployment insurance benefits companies always have regarded independ­ are included, but where does the proposed OF IOWA ent marketers as the greatest threat to their IN THE HOUSE OF REPRESENTATIVES market dominance. Noting that the mar­ federal budget recognize the increased cost keters still must obtain product from the to the Federal Treasury, for AFDC, Food Thursday, April 9, 1981 Stamps, Medicaid, and any other welfare majors, the report observes, ". . . the inde­ payments for current PSE participants? We e Mr. BEDELL. Mr. Speaker, the pendent resellers' challenge to the majors need to also consider the loss of tax rev­ House Small Business Subcommittee was not primarily the result of lower supply enues to state and local governments as well on Energy, which I chair, recently con­ prices. Their primary threat to the majors as the loss of economic stimulation. ducted several days of hearings on gas­ lay in their greater efficiency at distributing Cutbacks in funding of vocational educa­ and marketing petroleum products." This, oline marketing practices. In the the report suggests, is why the majors tion and CETA appear to me to be contrary course of our hearings, there was some to the basic philosophy of the Administra­ struck at their competitors in areas other tion's economic recovery plan. I believe that discussion of a Canadian Government than in the retail marketing arena. Calcu­ if the private sector has greater capital to report detailing alleged widespread lating the economic cost of the diminished invest in plant improvements and expan­ anticompetitive activity by the major role of the independent marketers, the sion, much of that investment will be geared oil companies operating in our neigh­ report estimates that Canadian consumers toward automation and robotization which boring country. paid an average of $325 million more per year for each year Therefore, the need for training the work also may be interested in this recently covered by the-study. force will be even greater. CETA and voca­ This is how a public information state­ released Canadian study. The staff of ment from the Commission describes the tional education are the public avenues the Small Business Subcommittee on available to move the disadvantaged long­ origin of their inquiry: term unemployed-those without job skills Energy has prepared a very brief over­ "In February, 1973, the Consumers' Asso­ who have multiple barriers-into the main­ view of the six-volume study. For the ciation of Canada requested the Director of stream of the American work force.e benefit of Members and the public, I Investigation and Research under the Com­ am inserting the body of the staff bined Investigation Act to investigate memo at the conclusion of my re­ whether gasoline and fuel oil price increases VIETNAM VETERANS DAY made a month earlier by a number of oil marks: companies were the result of a conspiracy HousE oF REPRESENTATIVES, CoM­ and to determine more generally whether HON. DAN COATS MITTEE ON SMALL BUSINESS, SUB­ prices were maintained at an unduly high OF INDIANA COMMITTEE ON ENERGY, ENVIRON­ level because of the extent of vertical inte­ IN THE HOUSE OF REPRESENTATIVES MENT, AND SAFETY ISSUES AFFECT­ gration within the petroleum industry." ING SMALL BUSINESS, RAYBURN Thursday, April 9, 1981 The February 1973 date is of special inter­ HOUSE OFFICE BUILDING, est because it coincides with the price-fixing e Mr. COATS. Mr. Speaker, on March Washington, D.C., March 24, 1981. charges brought against 14 major oil compa­ 26 I was unavoidably detained on offi­ To: Hon. Berkley Bedell, Chairman. nies in the U.S. by the States of Arizona, cial business and failed to register my From: Marc H. Rosenberg, Staff Director. California, Connecticut, Florida, Oregon Re Canadian Government Study of Petro- and Washington. prove very useful to the Subcommittee-as­ resolution. As a Vietnam era veteran by Robert J. Bertrand, Director of Invest!- suming the similarities between the U.S. April 9, 1981 EXTENSIONS OF REMARKS 7225 and Canadian markets are significant-be­ limbs lost to a sniper or land mine, to approximately $19.6 million in fiscal cause the Department of Energy's recently­ an ever-present knowledge that many year 1981 and $35.6 million in fiscal completed report, "The State of Competi­ of their own countrymen fled our tion in Gasoline Marketing," addresses the 1982. Specifically, the cuts include: pre-1973 marketplace only through the de­ Nation when they were called upon. Three projects which had previously velopment of a theoretical model, rather An amnesty for the draft dodgers was been authorized by EDA are now in than through an examination of specific later declared, which was akin to pour­ jeopardy of not receiving funds total­ data. ing salt in the wound. Our vets have ing $16 million; Mr. Bertrand suggests that an under­ suffered enough at the hands of the Changes in the UDAG and weatheri­ standing of the pre-1973 gasoline market­ North Vietnamese. That they have to place is vital to an understanding of what is zation programs and elimination of suffer more at America's hands is in­ section 312 loans result in a loss of going on today. Reading his comments on tolerable. this point leaves little room for doubt. The $4.4 million in fiscal year 1982 to only question that arises is: Is he describing But the marking of April 26 as Viet­ Cleveland's community development the situation in Canada or the 'U.S.? As you nam Veterans Day will hopefully program; can see in the following excerpt from the denote a turnaround in our way of Loss of titles 11-D and VI will result report, the circumstances are remarkably thinking about our veterans. As a fur­ alike. ther sign of enlightenment, a program in a reduction of $14 million in Cleve­ "The material being submitted to theRe­ which is vital to many Vietnam vets, land's CETA program or approximate­ strictive Trade Practices Commission was the Outreach program, has not been ly 1,000 fewer jobs for Cleveland's un­ largely collected in 1973. Thus the question cut from the Veterans Committee employed; arises whether the industry has changed budget proposal. The return of the A $3.1 million loss in youth pro­ since that date in a fashion which makes grams will mean 3,500 fewer young the assessment of past behaviour irrelevant hostages from Iran woke the Nation, to public policy decisions. While recent and with the celebration we learned of adults will not have jobs during the changes in the international environment our own neglect of those who were im­ summer of 1982; affecting the Canadian petroleum industry prisoned for much longer. The elimination of the bridge con­ and in government energy policy have oc­ I, and the rest of my colleagues, struction/reconstruction funds from curred, the structural problems in the in­ should join all Americans on April 26 the fiscal year 1982 budget amounts to dustry remain unchanged. In addition the in honoring the veterans of the Viet­ a loss of $4.4 million to Cleveland over consequences of that structure for the in­ nam conflict.e the next 6 years for projected repairs dustry's behaviour and performance, as doc­ to 10 bridges; and umented in this submission, are more im­ Elimination of the UPARR program, portant now than they were a decade ago." VOINOVICH ANALYZES "Some changes have occurred in the dis­ which is aimed at assisting distressed tribution sector. In particular, there has REAGAN'S CUTS cities rebuild their park systems, will been a trend to fewer gasoline stations and result in a loss to Cleveland of $6.1 average volumes per station have increased. HON. DENNIS E. ECKART million for needed park and recreation However, the dominance of the majors is OF OHIO repairs. greater today than at the beginning of the IN THE HOUSE OF REPRESENTATlVES 1970s. As a result there is little reason to Mr. Speaker, the list continues: proj­ suggest that consumers can count on bene­ Thursday, April 9, 1981 ects in which the Federal Government fiting from lower distribution costs. The • Mr. ECKART. Mr. Speaker, recent­ already has a substantial investment various disciplinary practices that have ly several members of the northeast are threatened with rescission of been used in the past to maintain high Ohio congressional delegation met funds: the Greater Cleveland Inter­ wholesale-retail margins are still available with Mayor George Voinovich of church Council has identified the loss to the majors. In addition, the independent Cleveland. The purpose of this meet­ of $40 million to Cleveland's poorest resellers-the dynamic element that might families in areas such as nutrition pro­ provide the competition needed to keep ing was to discuss the impact of the costs and prices down-are more at the proposed fiscal year 1981 and fiscal grams, health care, and schools, the mercy of the majors for their supply of gas­ year 1982 budget cuts on our region, city's regional transit authority proj­ oline and other products than ever before. and particularly, on the city of Cleve­ ects a loss of $16.4 million with the There is, therefore, a need to safeguard land. proposed elimination of the operating competition in the face of the dramatic First, I want to make the point that assistance program, Cleveland State changes that have occurred and that will the meeting was not based on parti­ University predicts that the proposed continue during the next decade."e sanship, but on principle. Cleveland's changes in the Pell grant will cost 573 Republican mayor called the meeting, of their students $470,000 in grant VIETNAM VETERANS DAY and he should be commended for his funds. political forthrightness. Mayor Voino­ Mr. Speaker, it is obvious that there HON. JIM JEFFRIES vich realizes that this is a community are holes~ in the administration's OF KANSAS problem, and to adequately address it, safety net. Cleveland's Plain Dealer "If IN THE HOUSE OF REPRESENTATIVES it is important that party affiliation quotes Mayor Voinovich as saying, not be a factor. the net isn't repaired, there's going to Thursday, April 9, 1981 Mr. Speaker, understandably Mayor be devastation, not only in Cleveland • Mr. JEFFRIES. Mr. Speaker, when Voinovich and the area's congressional but in every major city." I have to Congress declared April 26, 1981, as representatives are concerned by what agree with this statement, for the pro­ Vietnam Veterans Day, it took a step we see as the inequitable treatment ac­ posed cuts could possibly destroy our which I felt should have been done corded Cleveland and the other major older cities if they are not modified. the first year after our pullout from cities of the industrial Northeast and And if these budget cuts do not do it, Saigon. Our Nation has done little to Midwest in the administration's "Pro­ the untargeted tax changes and tax honor the sacrifices these men and gram for Economic Recovery." Mayor giveways that the administration seeks women endured when they were called Voinovich's office was able to compile undoubtedly will. The accelerated in­ upon to fight and die, sacrifices which extensive figures and analyses that vestment writeoff procedure, as pro­ were exacerbated by a lack of national demonstrate that the proposed budget posed, will further encourage disin­ will to support them in their efforts. cuts and tax changes will impact ad­ vestment from the Nation's cities, en­ This lack of support has been carried versely on the City of Cleveland and courage the growth of the Sunbelt at on for far too many years now, and I other northern Ohio cities, and could the expense of the North, and encour­ think it is time to tum the situation seriously undermine our economic age industrial relocation instead of the around. Many of those who returned base. revitalization that our region needs, came back with horrible memories, of Mr. Speaker, the administration's further exacerbating the problems of years spent undergoing torture, of proposed cuts for Cleveland amount to our mature urban cities. Mayor Voino- 7226 EXTENSIONS OF REMARKS April 9, 1981 vich has stated that if these tax On Sunday, Roy's Taxi Inc. will celebrate this. You have to be hungry for it. People changes are not targeted, then they 50 years as the green-and-Aztec red cab On Friday, Congress Avenue will be re­ " are not worth supporting." service that has watched Austin grow along born since 1940, they have silver spoons in Again, I wholeheartedly agree. with it. Velasquez was honored today with a their mouth.'' Mr. Speaker, I am sure that Cleve- Texas Senate proclamation, the same type named for Velasquez as a tribute to his con­ land Mayor George Voinovich's analy- of recognition given to Oscar winner Sissy tributions to the citizens of Austin. Spacek and Grammy winner Christopher sis is true for other older urban areas cross earlier in the session. as well. His nonpartisan, impartial · Velasquez takes it all in stride. Hard work $5 LoAN BOUGHT GAS, LICENSE To START analysis is welcomed by all of us who got him where he is today, with a little help ROY'S TAXI ON 50-YEAR CAREER want to see budget cuts and tax pro- from a belief in the American Dream and a grams that are reasonable, responsi- sense of integrity that many businessmen Roy Velasquez, who began an Austin ble, and fair for all regions of the find wanting. family business legend with a $5 loan and a country and for all people.e The respect that has been shown to him determination to survive, was honored by Presidents Lyndon Johnson and Harry Sunday by nearly 2,000 friends who packed Truman and Mayors Carole McClellan and the arena floor at the Erwin Center for the Tom Miller begins at home, where his 10 50th anniversary celebration of Roy's Taxi. ROY VELASQUEZ-FROM CABBIE surviving children, 27 grandchildren and Velasquez, 71, was saluted as a "humani­ TO BUSINESS LEADER two great-grandchildren consider him "the tarian and leader" who never forgot the noblest of men." Their loyalty to him poor and downtrodden even when his own HON. J. J. PICKLE reaches as far as the many miles he has cov­ business flourished. OF TEXAS ered at the steering wheel of a taxi. I'm going to put this event into the CoN­ "I started in 1931 when I went to the GRESSIONAL RECORD as a salute to a great IN THE HOUSE OF REPRESENTATIVES owner of 'Ten Cents Taxi' to be a driver and amigo," said Rep. J.J. "Jake" Pickle, one of Thursday, April 9, 1981 the man told me, 'People don't like Mexi­ several political leaders who came to the • Mr. PICKLE. Mr. Speaker, one of cans. You would run off my clientele if I gala anniversary celebration. had a Mexican driver,' " he says. Roy Ramirez, a LULAC official from San the strengths of our American system "So I say, 'I don't want you losing money Antonio, said Velasquez had opened oppor­ is that a soft-spoken man can begin a because of me,"' he recalls. "And I start my tunities for minorities with his leadership in business from scratch and build it into own taxi company the hard way. I went out the Hispanic organization. a major enterprise. When you throw there like a crusader. I holler at everybody "He is the people's champion in the bar­ in the ingredient of overcoming racial who pass by, 'Taxi! Taxi! Taxi!'" rios of the poor," Ramirez said. prejudice, you have a hearty brew, In less than three months, Velasquez had Velasquez joined the League of United indeed. 400 regular customers, many of them blacks Latin American Citizens in 1935 and for 40 Mr. Roy Velasquez last Sunday cele­ who weren't allowed to ride on the trolley. years fought educational and economic bar­ brated the 50th anniversary· of his He made the rounds in a 1928 Model A riers against Mexican-Americans in Texas. Ford, picking up his customers at their LULAC led the fight in the landmark Bas­ business in Austin, Tex.-Roy's Taxi. homes in the mornings, "dumping them at trop school discrimination case, which out­ Some 1,500 friends gathered to offer work" and returning them home in the lawed separate schools for Mexican-Ameri­ their congratulations to this warm, evenings. cans. humble man. The Austin Citizen pub­ "I had to buy springs every two weeks," Velasquez, confined to a wheelchair and lished the definitive Roy Velasquez he says, "because I would pack seven or partly blind, sat through the accolades with story last week, and I am pleased to eight people in at a time. The streets were a characteristic granite expression, wearing present it here. gravel and that first car didn't last too a white felt Stetson and carrying a cigar long." tightly under a crooked index finger. It is probably much harder to start a He launched Roy's Taxi on April 5, 1931, business now than 50 years ago. But His success angered streetcar drivers, who complained to the city that Velasquez was after other Austin taxi firins refused to hire the example set by Roy Velasquez still taking away their business. "They wanted him because of his ethnic background. The has applications for today-that hard me to move so I couldn't fight them. So I go Depression had shattered his trade as a car­ work, personal initiative, the support to Sixth and Lydia and tell the fella I'll buy penter so he borrowed $5 from a friend, of family, and finding time to help gas from him if he answer phone for me at Braulio Reyes, for a $3 taxi permit and $2 others can take a man or woman far. filing station," he explains. worth of gas. We congratulate Roy and his family He remained there until 1950, when he His motivation was simple. for a wonderful contribution to the moved the business to 704 E. 11th and set "I was hungry and I had my father and up living quarters there for his family. my four brothers who depended on me. I Austin economy and showing the way had to make a living for them:· for others. Since 1957, 90 East Ave. has been home and headquarters for Velasquez and Roy's Since other cabs would not carry black I include for the RECORD two news­ Taxi-and its fleet of 50 cars. · passengers, the new taxi driver found a paper articles honoring the accom­ It is also the place where city, state and steady market on the east side of town. plishments of Roy Velasquez: national political figures come to Velasquez Within a year Roy's Taxi had 35 contract TIMELESS TAXI-ROY VELASQUEZ HUSTLED seeking both aid and advice in their quests cars and carried 400 customers each day. HIS WAY TO POSITION OF RESPECT to get the support of Mexican-Americans. The company now has a fleet of 50 cabs, LBJ, Truman and U.S. Rep. Jake Pickle are half owned by the company, and nearly 100 among Velasquez's favorites. employees. His diamond flair ring and gold necklace "Lyndon was a man who say 'yes' and Six of Velasquez's 11 children are officers are embleins of Roy Velasquez's success as a mean 'yes.' He never said 'yes' and mean in the company, which is located on one Mexican-American businessman in Austin- 'no,"' says Velasquez. floor of the Velasquez home near East First 50 years in a job he knew nothing about Velasquez helped organize the local chap­ Street and Interstate 35. when he started. ter of LULAC in 1935 and was one of the As part of the the 50th anniversary, the They're symbols of the man hiinself-a charter members of the Austin Citizens company restored a 1926 Model A Ford, a crusading Capricorn whose primary obliga­ League, which screened City Council candi­ replica of the first taxi that carried the tion was to find a way to provide for his dates in the '60s and made political endorse­ company's colors of the green and red family. The necklace is a gift from his sons, ments. stripes of the Mexican flag. who continue in the business with him, Whether as an organizer or chief, adviser Sunday was declared Roy Velasquez Day working out of Velasquez's house at 90 East or patriarch of his family, Velasquez has by the city and Legislature, and Congress Ave. worked gallantly to fight for the things he Avenue was named in his honor for the day. Velasquez, 71, leans forward in his wheel­ believes in. To him, it is as simple as want­ The Velasquez family presented a plaque chair, takes a bite out of an apple and re­ ing to provide for his family. "I had to make to the family of Braulio Reyes in apprecia­ calls the 50-year chapter in his life in which it," he says. "I had my mother, my father tion for the $5 loan. he rose from a "small fry" to a position of and four brothers. "My father," said the son of the now-de­ respect and leadership in the Mexican­ "I was ambitious-for dinero. But today, I ceased Reyes, "loved Roy and knew that he American community. don't think you could start business up like would also help those in need.'' April 9, 1981 EXTENSIONS OF REMARKS 7227 The celebration featured mariachi bands other day by a Census Bureau report that reduce estate tax rates by 10 percent and folkloric dances and a special dance by one-third of all households receive some in all brackets and increase the unified Velasquez's 12-year-old granddaughter, sort of federal handout. That includes such credit to $124,750. Combined with the Sharon Velasquez. Velasquez's brother, things as Medicare, Medicaid, food stamps, new tax rate tables, the increase in the Matt, sang a song that the guest of honor and school lunches. could appreciate: "I Did it My Way."e Granted, lives are eased considerably unified credit will raise the exemption through this federal assistance. But putting for estates to those under $600,000. everyone on welfare will accomplish at least The tax rate schedules under H.R. two consequences: the cost will prove cata­ 3003 are as follows: REAGAN'S WELFARE CUTS strophic and it will be impossible to stop po­ litically. "If the amount with respect to The tentative tax is: As which the tentative tax to be the Census Bureau study discloses, the comptJted is: HON. JIM JEFFRIES nation has nearly reached this point al­ Not over $25,000 ...... 10 percent of such amount. ready. The present effort to reverse the tide CNer $25,000 but not over $50,000 ..... $2,500, plus 15 percent of the excess OF KANSAS of federal charity may be our last chance to of such amount over $25,000. IN THE HOUSE OF REPRESENTATIVES Over $50,000 but not over $125,000 ... $6,250, plus 18 percent of the excess stave off bankruptcy.e of such amount over $50,000. Thursday, April 9, 1981 Over $125,000 but not over $250,000 . $19,750, plus 20 percent of the excess of such amount over $125,000. e Mr. JEFFRIES. Mr. Speaker, the Over $250,000 but not over $500,000 . $44,750, plus 22 percent of the Junction City, Kans., Union has pub­ excess of such amount over TIME FOR INHERITANCE TAX $250,000. lished an editorial which I feel de­ REFORM HAS COME Over $500,000 but not over $750.000 . $99,750, plus 25 percent of the serves the attention of the House. excess of such amount over $500,000. This was printed in the March 31, Over $750,000 but not over $162,250, plus 28 percent of the 1981, edition of the newspaper and in HON. CLINT ROBERTS $1 ,000,000. excess of such amount over OF SOUTH DAKOTA $750,000. essence supports the President's at­ Over $1,000,000 but not over $232,250, plus 31 percent of the tempt to cut welfare spending without IN THE HOUSE OF REPRESENTATIVES $1 ,250,000. excess of such amount over . $1 ,000,000. causing undue hardship on those who Thursday, April 9, 1981 CNer $1 ,250,000 but not over $309,750, plus 33 percent of the are truly needy. As the writer indi­ $1 ,500,000. excess of such amount over e Mr. ROBERTS of South Dakota. $1 ,250,000. cates in the editorial, eligibility for Over $1 ,500,000 but not over $392,250, plus 35 percent of the these programs is not a constitutional Mr. Speaker, I am introducing the $2,000,000. excess of such amount over Family Enterprise Estate Tax Equity $1 ,500,000. right: Over $2,000,000 but not over $567,250, plus 39 percent of the EDITOR'S VIEW Act in order to reduce the outrageous $2,500,000. excess of such amount over burden that Federal estate taxes have $2,000,000. An observation by a welfare reform expert Over $2,500,000 but not over $762,250, plus 43 percent of the is saying that it is technically possible to placed on family-owned enterprises. $3,000,000. excess of such amount over The Federal estate tax was never $2,500,000. reduce the cost of welfare programs by 25 Over $3,000,000 but not over $977,250, plus 47 percent of the percent and still accomplish their purpose. meant to be inflicted on the small $3,500,000. excess of such amount over Whether this is possible or not is another family farms and businesses that are a $3,000,000. CNer $3,500,000 but not over $1 ,212,250 plus 51 percent of the question because nobody seems willing to tradition in our country. Rather, it $4,000,000. excess of such amount over stop complaining long enough to listen. was intended to prevent unfair accu­ $3,500,000. Charles Hobbs, a former state welfare of­ mulations of wealth in the hands of a Over $4,000,000 but not over $1 ,467,250, plus 55 percent of the ficial, explains that at the first indication of $4,500,000. excess of such amount over few. But that intention has not been $4,000,000. the slightest reduction in the least defensi­ CNer $4,500,000 but not over $1,742,250, plus 59 percent of the ble program, special interest groups created met. $5,000,000. excess of such amount over In fact, inflation has caused the $4,500,000. and supported by the welfare industry de­ Over $5,000,000 ...... $2,037,250, plus 60 percent of the scend on Congress to protest. They appear estate tax to contribute to the prob­ excess of such amount over either as helpless victims of a vindictive cut­ lem it was designed to prevent. That $5,000,000.". back, or as a political power group whose is, as heirs who cannot afford to pay welfare "rights" have been violated. estate taxes are forced to sell out, The increase in the unified credit will be So the Reagan administration is accused more land and capital is accumulated phased in over a five-year period as follows: of being heartless in proposing cutbacks in by larger enterprises, as opposed to programs for the poor. Further, it is not un­ "In the case of gifts made in: usual to hear eligibility for these programs the smaller, family-controlled units. 1981 ...... $29,750 This legislation, H.R. 3003, proposes 1982 ...... 55,750 defended as some kind of constitutional 1983 ...... 77,750 right. No question, there is clout behind the five major changes designed to correct 1984 ...... 99,750 "welfare industry" in the form of govern­ the inequities of current Federal 1985 ...... 124,750 ment agencies administering welfare pro­ estate tax law, along with amend­ grams and organizations representing their ments to clarify the law. clients. Corresponding filing exclusions are also Hobbs quotes a congressional study done RAISE EXEMPTION, LOWER RATES phased in, so that by 1985, estates under several years ago to provide a classic exam­ Current tax exemptions and rates $600,000 will not be required to file a return ple of how income security programs· have are essentially based on 1939 values, under federal law. piled up to distort the purpose of the wel­ which was the year of the original en­ The unified credit is a lifetime credit that fare system. offsets gift tax liability, while the unused actment of the estate tax as we know remainder of the credit offsets the estate The study demonstrated that a mother · it today. Obviously, inflation has dras­ tax liability of the donor. with four children qualifying for Aid to tically altered property values since Families with Dependent Children was also entitled to benefits from 14 other programs. that time, and H.R. 3003 proposes to END WIDOW'S TAX And-theoretically she was eligible for cash raise the exemption and reduce tax Sadly, current inheritance tax law does payments and in-kind benefits equal in rates in order to adjust for inflation. not recognize the married couple as an value to three times the median income for Under present law, tax rates on the equal partnership in a family enterprise. a working woman. estate, gift and generation skipping Many spouses who survive their partners The AFDC program and all 14 of the transfers range from 18 percent ones­ are forced to sell off all or part of the farm others could be defended as meeting a tates under $10,000 to 70 percent on or business they have worked all their lives "need," but it is hardly defensible for the estates over $5 million. The present in, in order to pay inheritance taxes. government to be providing a non-working H.R. 3003 will treat the married couple as mother with the same or a higher living unified credit provision of the law is a single unit for estate and gift tax pur­ standard than what a mother provides by $47,000, acting as a tax exemption for poses, thus ending the "widow's tax", as it is working. estates under $175,625. commonly called. Just how far along this nation has come The enactment of the Family Enter­ Presently, estate and gift tax laws allow to being a welfare state was illustrated the prise Estate Tax Equity Act will complicated and limited deductions on gifts 7228 EXTENSIONS OF REMARKS April 9, 1981 from one spouse ' to another and some relief Parcel Service for the work they have The transition team was led by J.A. on transfers to the surviving spouse. Under done in developing a new stratified Parker, a black conservative who heads the H.R. 3003, transfers between spouses are charge engine. This new engine will respected Lincoln Institute, a think-tank disregarded for tax liability. burn anything from diesel fuel to pre­ which deals with black-oriented issues. The This unlimited marital deduction will mium high octane gasoline. Equally key recommendation of the group was that permit the surviving spouse to .receive the when a firm is accused of discrimination, full value of the estate of the deceased important, this new engine has re­ the accuser be required to prove intent to spouse issued a stinging objectionable discrimination exists that report calling the U.S. Governments affirm­ calls for corrective action is absurd on its e Mr. EDWARDS of California. Mr. ative action program a "new racism in face. Unless there is specific evidence of in­ Speaker, I want to applaud the United which every individual is judged by race.". dividual discrimination, at most only a sus- April 9, 1981 EXTENSIONS OF REMARKS 7229 picion of discrimination can be drawn war­ sector employment opportunities for the na­ that would result from the Administration's ranting further inquiry. Only when we are tion's economically disadvantaged. Thus the proposals is not reflective of a declining dealing with random selection where no cri­ need for CETA services would decline. need for services by those who are served by teria of merit are involved, as in jury rolls, Second, it is assumed that CETA programs the CETA system. The reductions in fund­ or in registration procedures or voting be­ have not improved the employability of dis­ ing will necessitate reductions in service to havior, are statistical disproportions at vari­ advantaged youth and adults. those in greatest need: unskilled, uneducat­ ance with population distribution prime The Boston experience suggests that both ed· and unemployed minorities, youth, facie evidence of bias in the process of selec­ of these assumptions are incorrect. There is women, and handicapped individuals. Re­ tion. My favorite example of non-discrimi­ a continuing need for employment and ductions of this scale will not eliminate du­ natory statistical disproportion is that in training services in a healthy economy. Fur­ plication or force the CETA system to stop the past the overwhelming majority of the thermore, the employment and training serving those who are employable. Rather it captains of tug boats in the New York system has been successful in improving the will deny the large number of Boston's poor harbor were of Swedish origin but this con­ employment success of economically disad­ and disadvantaged the opportunity to stituted no evidence of the presence of ... vantaged individuals. obtain services that could have a long-term, prejudice." Unfortunately, , an unjustice is done to individuals local employers in need of productive em­ Philadelphia on April 22, 1881, and " ployees; and to the community. has lived all of his 100 years in the · ·The EEOC transition report calls for, in "City of Brotherly Love." For the past effect, a "color blind" society. Now, it's up The role of the employment and training to President Reagan to implement it.e system in Boston is to provide a complex set 52 years he has been a vital part of the of services that give clients the basic skills Crescentville neighborhood in the necessary to enter an unsubsidized job.... Fouth Congressional District of Penn­ The Boston employment and training sylvania. ATTACKING MYTH: CETA DOES system has been successful in helping cli­ On June 24, 1903, Alfred Charles NOT WORK ents obtain employment. In 1980, two out of Diehl married Ida E. Cook and they every three clients who entered a CETA program were placed in an unsubsidized job, were blessed with 59 years of married HON.AUGUSTUSF.HA~NS continued training or returned to school as life before Mrs. Diehl's death on OF CALIFORNIA a result of their participation in the pro­ August 19, 1962. The Diehls have a IN THE HOUSE OF REPRESENTATIVES gram . . . Participants in skill training pro­ daughter, Almira D. Pollock; two Thursday, April 9, 1981 grams experience significant increases in grandsons, D. Bruce Pollock and Ste­ wages over pretraining levels. Even greater phen C. Pollock; and four great-grand­ e Mr. HAWKINS. Mr. Speaker, the wage gains are obtained six months after sons, Jonathan, Brian, Mark, and Eric. Secretary of Labor, on his job just 3 completing the programs. A loyal member of the Crescentville months, has concluded that the Com­ Boston's youth programs have also dem­ Baptist Church, Mr. Diehl has lived prehensive Employment and Training onstrated their effectiveness. Project YES, a program that links work with education has his long life in dedication to Christian Act does not train or prepare its en­ principles. A 32d degree Mason, Mr. rollees for unsubsidized jobs or career shown its ability to improve school attend­ ance and to encourage drop-outs to return Diehl has served with distinction with opportunities. to school . . . The benefits of CETA training the Benjamin Franklin Consistory, Co­ The Education and Labor Commit­ programs help meet the needs of local pri­ lumbia Lodge No. 91, Keystone Royal tee has amassed volumes of evidence vate employers for skilled labor . . . CETA Arch Chapter No. 3, Philadelphia, St. that on the whole CETA does work, PSE slots also benefit the entire community Johns Corinthian Commandery, and while those who attack the program as well as the individual client. the Masonic Veterans of Philadelphia. have no alternative to offer. The effect of these proposed funding re­ His achievements have been an inspi­ In recent testimony before the ductions on the Boston employment and ration to his fellow Masons. House Committee, David S. Mundel, training system would be dramatic . . . The elimination of Titles II-D and VI will reduce Alfred Charles Diehl served · his Administrator for the Employment country for many years as a member and Economic Policy Administration Boston's ability to provide pre-vocational, educational and training services to adults of the National Guard. His career has in the city of Boston both refuted the and older youth who cannot be absorbed included jobs at John Wanamaker, S. myths and described how CETA works into the remaining programs due to full en­ S. White Dental Manufacturing Co., in his area. rollment. The virtual elimination of Title Westinghouse Electric, Automatic Excerpts from his testimony follow: IV-A Youth Program and the end of Bos­ Timing and Controls, and the Cresent­ The proposed reductions are ton's Youth Entitlement Program will dramatically reduce the City's an overall reduction in government spend­ ability to educate, train and employ disad­ member him as faithful and depend­ ing and taxes, it is assumed that these re­ vantaged youth. able on the job and as a helpful friend. ductions will generate increased private The reduction in service funding levels Mr. Speaker, as Alfred Charles Diehl 7230 EXTENSIONS OF REMARKS April 9, 1981 marks the 100th year of his life, we found anxiety as they watched the nation's cerns evolving from the 1980 White join with his family and his friends in economy, and their own dreams and hopes, House Conference on Small Business. extending to him our heartiest con­ fraying badly. And they sensed, I believe, The States of Maryland, Connecticut, gratulations and our gratitude for that this was no ordinary crisis, but a Delaware, Georgia, Virginia, and as of matter of survival for the governmental many years of faithful service to his structure that has served us so well these this past January, the District of Co­ community, to his country, and to his 200 years. lumbia, have enacted laws which pro­ God.e Already, however, there are signs that tect the independent dealers from some officials are more interested in cling­ unfair trade practices conducted by ing to tattered partisan rivalries than in the big oil company managed gasoline giving our new economic remedies a chance stations. WORDS OF WISDOM FROM to succeed. And this is tragic. Considering The statistics are revealing. Nearly GREYHOUND all we have been through in recent years; 100,000 independently owned or oper­ considering the price we have already paid, ated gasoline stations have gone out of and the even greater turmoil that lies ahead HON. ELDON RUDD if we relapse into our old economic format, business since 1972. This is more than OF ARIZONA we cannot afford to be a nation divided. a statistic. It represents people who IN THE HOUSE OF REPRESENTATIVES I urge you to put aside political consider­ have provided a valuable service, who ations and put your considerable influence have lost their livelihood. Yet, during Thursday, April 9, 1981 behind supporting the President and Con­ the same period, the number of gaso­ • Mr. RUDD. Mr. Speaker, Gerald gress in their efforts to reassert economic line stations directly owned and oper­ Trautman, dynamic board chairman stability in the U.S. There will be inevitable ated by refining companies did not de­ and chief executive officer of the pain for some because we've allowed the cline, but in fact increased by almost Greyhound Corp., which provides economy to deteriorate so badly that the 3,000. more than 52,000 real jobs nationwide remedies will hurt. But that's where we in the private sector can help . . . through job In response to this potentially dan­ and taxes of about $20 million annual­ creation, improved productivity, a broad­ gerous situation, the Subcommittee on ly, has some words of wisdom for all of ened tax base. Again . . . the concept of Antitrust and Restraint of Trade Ac­ us in the House of Representatives. "doing good" if allowed to "do well!" tivities Affecting Small Business held Mr. Trautman has been at the helm I solicit your support for business and in­ a series of field hearings last year. As of Greyhound's diverse business oper­ dustry and for your own constituents whose a member of the subcommittee at the ations during a time of tremendous well-being is unalterably tied to the health time, I had the privilege of hosting growth for his company. He recognizes and well-being of the economy. hearings in Dayton, Ohio, which is the that as productive enterprise in the Very sincerely yours, principal city in my district. We re­ private sector is able to grow and GERALD H. TRAUTMAN, Chairman of the Board.e ceived testimony from 21 active and expand, more jobs are created, more former service station operators who funds are available for charitable good told about the plight of the independ­ works, and the tax base is expanded to ent dealer. support government services at the According to testimony by the mar­ community, State, and Federal levels. INDEPENDENT GASOLINE DEAL­ keting manager for the Marathon Oil Mr. Trautman urges support of ER-ENDANGERED SPECIES? Co., problems encountered by the President Reagan's program for na­ small independent dealers could fairly tional economic recovery in a letter ac­ HON. TONY P. HALL be placed with consumers who choose companying the Greyhound Corp.'s to abandon patronage of the smaller 1980 annual report. OF OHIO IN THE HOUSE OF REPRESENTATIVES gasoline stations in favor of service This letter makes such good sense from oil company managed facilities. that I include it in the RECORD at this Thursday, April 9, 1981 Yet, I cannot conceive how consumer point: • Mr. HALL of Ohio. Mr. Speaker, as preference could claim sole responsi­ THE GREYHOUND CoRP., a cosponsor of H.R. 1362, the Small bility for the massive independent sta­ Phoenix, Ariz., April1, 1981. Business Motor Fuel Marketer Preser­ tion shut-downs which occurred so Hon. ELDON RUDD, House of Representatives, vation Act of 1981 and its predecessor suddenly. Washington, D. C. in the 96th Congress, H.R. 6722, I ap­ A different explanation was pro­ DEAR REPRESENTATIVE RUDD: I am pleased preciate the opportunity to urge vided by the independent dealers who to send you this advance copy of our 1980 prompt enactment of gasoline divorce­ testified. They pointed out that the oil annual report and to advise that last year, ment legislation during the 97th Con­ companies have built high volume, Greyhound's profitable operations allowed gress. gas-only stations near independent us to provide over 4,158 jobs for the people dealer stations and sold gasoline at of Arizona, at a 1980 payroll of over $67.8 The theory and practice of fair com­ million. Equally important, those are real petition forms the foundation of the prices with which the dealers could jobs ... jobs which produced goods and American system of free enterprise. not afford to compete. Dealers' leases services and which expanded the tax base. Small businesses in all sectors of in­ have been suddenly canceled forcing Since our first advance mailing of annual dustry thrive under fair competition, them to go out of business. reports in 1975, Greyhound's earnings have and wither in markets dominated by Other dealen have been put on gone from $80 million to last year's $118 large companies which exert unfair short-term leases with 30-day cancella­ million. I take tremendous pride in that pressures. That is why current anti­ tion clauses. Wblle this does not force growth as evidence of a fine company meet­ a station to close, many choose to shut ing consumer needs. That profit growth competitive practices of the integrated serves still another purpose, however. It cre­ oil companies may render the small in­ down rather than continue to operate ates and maintains a "quality of life" for dependent gasoline dealers extinct. with the uncertainty of not knowing employees, shareholders, suppliers and the Charges against retail gasoline mar­ when the lease will be terminated. communities in which we operate. In short, keting practices are by no means new. In many cases, the large oil compa­ "doing well" is the only way we can also be In 1965, the Federal Trade Commis­ nies will then open "secondary brand" sure of "doing good!" ... whether that good sion conducted hearings, and in 1967 it stations on the very sites where the be scholarships and community health care, issued a report criticizing these prac­ dealers had lost their leases because or job training and day care centers. the oil companies claimed the sales In the 1980 presidential election, the tices. Since tl.. en, a host of studies, American people set aside their political hearings, and forums have been con­ volume of the independently managed persuasions and spoke as a nation of dis­ ducted. Petroleum divorcement legisla­ stations were too low. . quieted individuals . . . people suffering pro- tion was listed among the priority con- The 1978 report of the Standard Oil April 9, 1981 EXTENSIONS OF REMARKS 7231 Co. of Ohio reflected its strat­ the House, I am pleased to introduce U.S. export performance; and calls for egy to reroute its retail sales of gaso­ the National Export Policy Act of export expansion to be a principal national line away from independent, full serv­ 1981. This comprehensive export bill is goal. ice outlets to company owned and op­ similar to legislation I sponsored in Title II-Export financing erated self service stations. The com­ the last Congress; it is a companion This title recognizes the importance of pany's established goal was to sell in­ bill to one being introduced today in adequate, competitive export financing to creasingly large volumes of gasoline the Senate by Senator RoTH and U.S. exports; adjusts the terms of the direc­ through a decreasing number of out­ Members of the Senate Export tors of the Export·lmport Bank; and re· lets. Caucus. The National Export Policy moves Export-Import Bank appropriations Data from the Department of Act is designed to establish an aggres­ from consideration with the foreign aid pro­ Energy last year showed that from sive national export policy and pro­ gram. January of 1978 _through May of 1979. mote U.S. exports. Title III-Export related tax policy Sohio owned and operated outlets in In the past, Congress has acted on a This title concludes that the Tax Code Ohio declined 11 percent, while the number of trade measures to stimulate should work to encourage rather than dis­ number of independently operated courage exports; provides for certain tax ex­ exports, but our approach has been emptions for American nationals living Sohio outlets declined 46.9 percent. piecemeal. The National Export Policy abroad and engaged in export activities; ad­ Further figures showed that Sohio Act is a major step toward a strong, co­ justs provisions of the Tax Code on bad owned and operated outlets made up hesive export policy that touches all debts resulting from exports, research and 39.5 percent of the total outlets selling aspects of American export efforts. experimental expenditures and foreign cur­ Sohio products in January of 1978 in The need for this legislation is clear. rency losses on export receivables; removes Ohio. By May of 1979, that figure had Our country faces serious problems in unfair penalties on U.S. exporters whose risen to 52.3 percent. the international marketplace. We are business is adversely affected by war and The trend continues. In Dayton, losing our ability to compete effective­ civil unrest in foreign nations; and allows more than 100 independent stations duty-free entry of machinery, materials and ly. We are no longer preeminent in the fuels for use in export manufacture in for­ have closed their pumps forever since trade of manufactured goods. In 1980, eign trade zones. 1974, according to the Southwest Ohio the U.S. merchandise trade deficit was Gasoline Dealers Association. I have $25 billion. While this was offset by a Title IV-Antitrust regulations learned that now they are closing This title finds that current application of surplus in our services trade account, U.S. antitrust laws to international trade almost by the week. we cannot ignore the damaging effect laws is complex and ambiguous, resulting in Through my own participation in on the value of the dollar and domes­ restraints on exports rather than encour­ the hearings on this subject, and my tic job stability of continued trade agement of competition overseas; amends examination of information which deficits and declining international Webb-Pomerene law to allow business asso­ documents the extent of these activi­ competitiveness. ciations engaged in export to obtain pre­ ties, I have concluded that the retail Meeting this challenge begins with clearance that will grant antitrust immunity marketing system as currently struc­ fundamental changes in our export for certified activities; and simplifies anti­ tured is unfair to the independent gas­ trust procedures to avoid conflicting de­ practices and the laws that govern mands by several U.S. agencies applying oline dealer. Unless some action is them. It begins with a new national antitrust laws and to clarify application of taken to reduce the power of the inte­ export policy that capitalizes on our grated oil companies, the neighbor­ the laws to extraterritorial activities. traditional economic strength and taps Title V-Adjustment of laws and hood independent gas station dealer the innovative and creative resources will be relegated to a position of his­ Government regulations that hinder exports of the American business community. This title finds that a number of U.S. torical Americana, like the milk deliv­ The National Export Policy Act is laws, regulations, controls and policies that ery man and the doctor who makes designed to enlist maximum coopera­ have been instituted to serve legitimate do­ house calls. tion among Government, industry, mestic economic, political and ethical needs Last year, both the House and and labor toward a common national have inadvertently acted as restraints on ex­ Senate committees completed favora­ economic objective. It pulls together ports because of the unpredictable and un­ ble consideration of legislation to cor­ all of the major concerns and recom­ clear nature of their enforcement, interpre­ rect the marketplace abuses by the tation and jurisdiction; amends the Foreign mendations regarding exports which Corrupt Practices Act of 1977 and the Secu­ major oil companies, but not in time to have crystallized over the last few rities and Exchange Act to remove these re­ secure a final vote on the floor of years. straints; calls for an international agree­ either body. This year we must coordi­ As the keystone of our drive to in­ ment on foreign business practices and a nate the efforts of the committees crease exports, the bill includes im­ full review of the Foreign Corrupt Practices having jurisdiction over the gasoline provements in export financing, Act; and calls for a reduction in the amount divorcement issue so that we can ap­ export-related tax policy-especially of export paperwork. prove legislation to promote fair com­ taxation of Americans overseas-and Title VI-Export awareness and export petition and preserve the independent removal of export disincentives such promotion programs gasoline dealer profession, while it still as antitrust regulations and business This title provides for the formation of exists.e export trading companies; creates special and accounting standards. At this grant and loan programs to help small busi­ point, Mr. Speaker, I insert in the nesses enter the export market; creates the RECORD a summary of the bill and a Joint Export Marketing Assistance Pro­ list of principal cosponsors to date. I gram; and calls for special assistance for ex­ THE NATIONAL EXPORT POLICY urge my colleagues to review this in­ porters of services. ACT, H.R. 3173-A SWEEPING formation closely and ask their sup­ Title VII-Agricultural export programs ATTACK ON SAGGING U.S. EX­ port for this comprehensive trade This title amends the Commodity Credit PORTS policy legislation. Corporation Charter Act to create an Agri­ The material follows: cultural Export Credit Revolving Fund; and HON. LES AuCOIN calls for adequate financing of agricultural OF OREGON SUMMARY, NATIONAL EXPORT POLICY ACT OF commodity exports through the U.S. IN THE HOUSE OF REPRESENTATIVES 1981, H.R. 3173 Export-Import Bank. Title !-General findings and purposes Title VIII-International agreements Thursday, April 9, 1981 This title presents the importance of ex­ This title finds that multilateral negotia­ e Mr. AuCOIN. Mr. Speaker, on ports to the U.S. economy and the need for tions and agreements are a preferable solu­ behalf of myself and 27 Members of aggressive action to be taken to improve the tion to many U.S. trade problems but the 7232 EXTENSIONS OF REMARKS April 9, 1981 trade agreements and COdes reached SO far A SNAPPY SALUTE TO GENERAL HAIG of Haig's appefl'ance, noted to this writer, have not achieved adequate removal of arti- all this a "tem~est in teapot ... blown out ficial barriers to U.S. products abroad; calls of proportion" by the press corps simply be­ for strong implementation of the Multilat- WASHINGTON.-A month ago, SecretaJjy of cause Haig "chose one or two untactful eral Trade Agreements and continued State Alexander Haig was the superst~r of words." Haig, said Rusk, has not yet learned stronger efforts to remove foreign tariff and the Cabinet; his visage stared from the the special ability of secretaries of state "to non-tariff barriers; encourages implementa- cover of Time magazine above the headline, say nothing at ~eat length.") tion of the Subsidies Codes on agricultural "Taking Charge." Third, Haig's statement that U.S. forces products by creating a standby export subsi- Today. he is like a wounded beast in some were not on heightened alert was less an ar­ dy program for agricultural commodities eddy of the Amazon whose blood has at­ rogation of authority than it was a neces­ that neutralizes the effects of other coun- tracted pools of piranha in attacks as un­ sary, reassuring response. tries' export subsidy programs if they fail to seemly as they are unjustified. For two days, the President's senior aides, follow the Code; calls for international The latest, made as usual by bureaucrats Ed Meese and Jim Baker, who were Secre­ codes on financing, business conduct, reci- who were provided a cloak of anonymity by tary Haig's adversaries in the earlier "crisis procity on enforcement of antitrust laws the press, centered on the secretary's de­ management tiff," have gone out of their and services and investment. meanor in the critical hours after the at- tempted assassination of the President. way to reassure the public, through the Title IX-Government support of export Let us review the actual situation in the press, that Haig performed well and correct­ goals Situation Room after Haig arrived with ly. This title concludes that all the available other Cabinet members. Another White House aide told this writer resources of the U.S. Government must be While the press was reporting the grace that the whole thing is being "blown sky­ used to assist and promote the export of and good cheer with which the President high" by a press corps which seems starved U.S. goods and services, except where con- was conducting himself at George Washing­ for any tidbit on which to build a story that trary to the national security or national ton University Hospital, we now know that Secretary Haig was about to go berserk. economic interests; calls upon all govern- his life was in the balance. On arrival, Mr. Such tidbits are being provided largely by ment departments, agencies and organiza- Reagan was having difficulty breathing, he Pentagon bureaucrats who were only as tions not directly involved in export policy · was bleeding from the nostrils and mouth, close to the Situation Room as the Sony TV in particular the Office of Management and staggering toward collapse. He had lost a in their office. Budget, the Department of Justice, the third to one-half of his blood from the Within the White House, a decision must Overseas Private Investment Corporation, wound in his side. He was almost in shock. be made. How badly does the administration the International Development Cooperation While this was hidden from the public want to retain the service of AI Haig? Ad­ Agency, the Department of Energy, the and press, surely it was known to a con­ mittedly a take-charge military man who Small Business Administration and the Con- cerned Gen. Haig. will seize any bureaucratic turf left unoccu­ gress, to consider the impact of their poli- Watching television, Haig saw the deputy pied, unattended, or disputed, he is also a cies, decisions and programs on exports and, press secretary inform the world that the man the Europeans trust ~nd the Soviets re­ where possible and appropriate, to take White House was unaware if U.S. military spect. steps to help export expansion goals. forces had gone on worldwide alert. If the administration wishes to retain the A take-charge man, the secretary immedi­ conceded abilities and liabilities of its con­ THE NATIONAL EXPORT POLICY ACT OF 1981, ately marched upstairs to the press room to troversial secretary of state, it should begin H.R. 3173 CosPONSORS, 97TH CoNGRESS assure the country there was no national by canning a few of the backstabbing blab­ Akaka, Benjamin, Brown , Mineta, Mollohan, Neal, Richmond, versial response: Simon, Williams, Alexander, Bonker, Der- "Constitutionally, gentlemen, you have winski, Forsythe, Gibbons, Horton, LaFalce, the Pres~dent, the vice president, and the CIVIL LIBERTIES AND CIVIL Lowry, Moakley, Murphy of February 15th, as wisdom. tion in a Coney Island mirror. having said that a racial dictatorship is pref­ One anxious reporter asked, "Mr. Gandhi, P. Jay Sidney, the actor and Flatbush ac­ erable to a Marxist one. what do you think of Western Civilization?" tivist, once said that any black person in At a dinner in Drydock Country, a well Gandhi seemed bemused for a second. And America who is not paranoid, is sick. And dressed lawyer placed a hand on my arm as then he replied with marked enthusiasm, now, the sickness has become integrated. he clutched with the other his fourth marti­ "you know, that's not a bad idea. Why We wonder what hath the politics of Amer­ ni glass. He said, gazing into my eyes, "If we doesn't somebody work on it?" ica wrought? ever have slavery again, I'd like to own As a black man, I cannot go home again. I Artificial respiration is being given to the you." mean by that that blacks like to join the House Un-American Activities Committee. . That man is a member of the bar and a Hyphenated Citizens, who call themselves Its trials and tribulations are about to be partner in a well known Wall Street law Irish-Americans, French-Americans, Ger­ born again in the Senate, dressed in the em­ firm. His martinis had become a truth man-Americans or Italian-Americans, and peror's clothing of internal security. serum. refer to themselves as Afro-Americans. S-1, a product of statutory miscegenation, One could almost touch the fear of Walter With their ancestors tom away from lurks in the national legislative halls, ready Benton's opening lines to his poem, "This Is Africa as captives 3 and 4 hundred years to aid and abet a judicial reformation in My Beloved." "Hate is legislated, shot into ago, the bloodlines have now become con­ America the beautiful. the veins like a vaccine." fused. With the Indians, blacks are perhaps The National Rifle Association, in a con­ It seems easy to mimic Palinurus and feel the only true Americans. Certainly, they genital and symbiotic relationship with the that the only thing in life which is worth­ cannot pack up in the summer and drop in Ku Klux Klan, opposes hand-gun control. less, is life itself. on the Old Tribe in Africa. The Klan, meanwhile, has ordained its Many people appear to echo the New Eng­ And so, I am here not to be a Philip Nolan own special forces and its commandoes are land poet who, at one frustrated point, said and sail this dry land as though I am with­ being trained to hate Jews, blacks and "Life goes on; but I don't remember why." out a country. Civil Rights have fed black Catholics. Others act as though they might have hunger for survival. Persuading the major­ Native American rights are so denigrated committed suicide, except for their fear of ity, moral or otherwise, that we are here to that bumper stickers are now seen which what the neighbors might say. stay, while insisting upon Constitutional say, "Save a Fish-Spear an Indian." Those of us gathered here are either equality, is of vital concern to 26 million Five American citizens are shot down and deeply concerned about the meaning of killed in Greensboro, North Carolina. The recent political events, or, perhaps, we are blacks. crime is captured on video-tape and shown infiltrated by spies who wish to monitor our And so, after the fashion of one in wor­ to an all-American jury. The accused Klans­ discomfiture; our winter of discontent; our ship of group therapy, I confess that I am men are acquitted. springtime neuroses. here to abate fear and to help nourish the States rights, the bane of black existence And added to our domestic bafflements idea that civil liberties, civil rights and the for so many years in this country, are ex­ and vexations, we must be sensitive to the politics of the 1980's and thereafter, can co­ tolled as a virtue by President Reagan. He arrival of George Orwell's 1984. exist; that they are not incompatible. elected to utter his praise in Phil~delphia, In the meanwhile, Dennis Brogan speaks I say this, although well knowing that af­ Mississippi, where Schwemer, Goodman of American society as an air conditioned firmative action, once devised as a catch-up and Cheney were slaughtered by law offi­ nightmare. mechanism, is a concept which is dead. It cials. G. K. Chesterton chastises our pacifica­ was assassinated by ambushers known as De Heartened by such display of ominous re­ tion of the Indians and our industrial mar­ Funis, Bakke and Weber. It now lies buried vanche aiding and abetting, the Klan vels by saying that there is nothing wrong in an unmarked grave, somewhere in the promptly endorsed the Reagan candidacy. with Americans, except their ideals. middle-American mind. It sought to march in the inaugural parade George Bernard Shaw speaks of America, In the cause of survival of American hu­ as well. the gem of the ocean, as the only country in manity, co-existing with civil liberties and Brilliant scholars of the world of self-delu­ the world to suffer a decline and fall in its civil rights, blacks will need their former sion, have said that the Nazi holocaust was civilization, without first having become civ­ Jewish allies. Puerto Ricans and blacks in only a fiction, invented by liberal dissidents. ilized. this city will have to declare a social and po­ Jewish graves and tombs are vandalized in Professor Harold Washington, of the litical detente. There are no more poverty various parts of the country, including this Howard University Law School, has pub­ crumbs to quarrel over. city. lished a Law Review article on the opinions All of us need to meet in places such as The Moral Majority, sometimes known as of Mr. Justice Rhenquist. His title is this, from time to time, to water the roots of the religious new right, spreads the pollu­ "Essays in Repression." freedom. Not, as Thomas Jefferson said, tion of its spiritual ecology by radio and Earl Warren has gone. with the blood of the martyrS, but with television. Warren Earl is very much in charge. Pater's hard, gem-like flame of insight and A wave of pentecostal, charismatic and Justice, that elusive blue bird of litigation, traditional American energy. emotional pompous piety is sweeping across is condemned by those in high places, along The liberation of women is not to be for­ the land. It is a self-anointed temporal and with those entrusted with its administra­ eign to our concerns. Women have moved national committee of undefined morals­ tion. Both victims and criminal defendants from slave labor to cheap labor. Little except, of course, if you dare differ with its deplore the judicial establishment. wonder that Erica Jong could say, as she standards of integrity and character, you We hear the sneer of Lenny Bruce scream­ pointedly did, that bigamy is having one may be overwhelmed by their neo-Fascist ing that, in the halls of justice, justice is in husband too many and monogamy is the morality. the halls. same thing. 7234 EXTENSIONS OF REMARKS April 9, 1981 History is past politics, and politics passion for change. This is especially true if women and blacks will be synonymous with present history we must be active in our the Victorian dogma is accurate in saying the politics of honor; and where as Mr. Jus­ time and shape the process, lest it shape us. that a conservative government is organized tice Douglas put it, the great duty of the "It seems to me a barren thing, this conser­ hypocrisy. land is to protect the Bill of Rights, let us vatism," said Disraeli, when faced by adver­ We must fashion our beginnings, for we never retreat. saries in control. He called Toryism "an un­ cannot avoid our endings without first happy crossbreed, the mule of politics that avoiding our beginnings. engenders nothing." With passionate impertinence, let us re­ In the spirit of that change which will tol­ member that the Constitution is not dumb. It is easier, of course, to be critical, than erate compatibility between national secu­ In that honorable cause, may the force be to be correct. Let us then be both, with a rity and civil liberties; where the rights of with us .•