30238 EXTENSIONS OF REMARKS September 21, 1977 EXTENSIONS OF REMARKS MARIGOLD-SHOULD BE THE UTILITY CONSUMER EDUCATION utility story to all schools was overlooked­ OF AMERICA even the kindergarten being provided with a specially published picture book. ( "Efforts by Aswcia tions and Agencies of HON. LEE METCALF Electric and Gas Utilities to Influence Pub­ HON. PETER H. KOSTMAYER OF MONTANA lic Opinion," summary report of the Federal OF PENNSYLVANIA IN THE SENATE OF THE Trade Commission to the U.S. Senate, 1934.) IN THE HOUSE OF REPRESENTATIVES One day in the fall of 1976, students in Wednesday, September 21, 1977 an economics class at Albert Einstein High Wednesday, September 21, 1977 Mr. METCALF. Mr. Pr~sident, a re­ School in Kensington, Maryland, began Mr. KOSTMAYER. Mr. Speaker, I cent issue of the Audubon Society maga­ playing "The Energy-Environment Game." rise today to share with my colleagues The game, in the words of its promoters, ls zine carried an article regarding the elec­ "a simulation dealing with so:::1ety's demand the words of a constituent, David Burpee tric power industry's latest attempt to for energy and its eftect on the environ­ of Doylestown, Pa., on why the mari­ mold the minds of schoolchildren. The ment."' Further, "the game is a representa­ gold should be the floral emblem of the article, by Marvin Zeldin, describes "The tion of reality in which players assume roles United States. Energy-Environment Game·• which was of adults in the real world. Students, Mr. Burpee's family has been in the sponsored by Edison Electric Institute, through a series of meetings, consider soci­ from whom Potomac Electric Power pur­ ety's demand for energy, its potential impact seed business for over 100 years and has on the environment, and possible trade-offs." pioneered much work and research in chased 250 copies for free distribution The game is based on a proposal by a ficti­ the field of plant breeding. The Burpee to area schools. tious electric utility company to build a new Co. was the first American seed company One of the educators who was inter­ powerplant at one of three sites in a mythi­ to create and market seeds for many viewed by the Washington Star regard­ cal community-a nuclear plant at one site, hybrid vegetables and flowers. ing use of the Edison Ele~tric Institute a fossil-fuel plant at another, or a nuclear David Burpee has been the head of the material pointed out that public interest or fo :::sil-fuel plant at the third. A governor's and environmental groups often do not commission considers the plans and sites for W. Atlee Burpee Co. for over 40 years. the new plant in a series of open hearings The Burpee Co. distributes 4 million have the money to produc~ such attrac­ and through citizen task forces. catalogs annually and I am proud that tive teaching aids or distribute them The game kit contains a teacher's guide, my home county, Bucks County, is the free. I hope that he and other educators 32 guides for student players, a filmstrip and headquarters for this fine business. take note of a Federal program designed record, site-sele:::tion information, wall map The material follows: to help the educators themselves develop for the classroom, reference materials, and such materials. I refer to the consumers 32 role cards. The 32 roles are divided into REASONS WHY THE AMERICAN MARIGOLD education grant program enacted by sec­ four groups: eight utility company officials; SHOULD BE THE FLORAL EMBLEM OF THE eight conservation organization types; eight UNITED STATES OF AMERICA tion 505 of the Education Amendments commerce, industry, and professional types; There are many reasons why the American of 1972

He fought with Washington at Brandy­ H .R. 4544 "These signs of success," Bensinger said, "I wine, and he is credited with saving Rollcall No. 561, "no." attribute to three factors: (1) the effective­ Washington's army by means of a bold Rollcall No. 562, "no." ness of the Mexican opium eradication pro­ cavalry charge. Pulaski also fought in Rollcall No. 563, "no." gram; (2) our close cooperation and sharing of intelligence with Mexican officials; and (3) the battle at Germantown. His commis­ Rollcall No. 564, "yea." the redirected enforcement effort DEA has sion as a brigadier general finally came H.R. 8655 taken to disrupt major trafficking organiza­ through, and he took command of the Rollcall No. 565, "yea." tions. cavalry at Trenton, N.J. Rollcall No. 566, ''yea." "The Mexican government in 1976 de­ During the winter of 1777-78, General stroyed 28,230 fields which could have Pulaski joined forces with Gen. Anthony produced 78 metric tons of six percent-pure Wayne and helped to defeat a British heroin. In 1977, 26,720 poppy fields capable of producing 74 metric tons have been de­ division at Haddonfield, N.J. Generals DRUG PROBLEM RISING IN stroyed already. Pulaski and Wayne again fought side EUROPE "We have refocused our enforcement efforts by side in skirmishes at Cooper's Ferry. through the expansion of Central Tactical In reporting on these battles, General Units (CENTACs), which aim at criminal Wayne declared that Pulaski had showed HON. LESTER L. WOLFF kingpins who are generally immune to nor­ "his usual bravery." OF NEW YORK mal investigative techniques. These teams In March 1778, Congress authorized IN THE HOUSE OF REPRESENTATIVES of special agents have been responsible for disrupting major trafficking organizations the formation of a Legion of Lancers and Wednesday, September 21, 1977 involving over 500 major violators." Light Infantry, as recommended by Gen­ Bensinger also announced the results of a eral Pulaski. Pulaski worked tirelessly to Mr. WOLFF. Mr. Speaker, as chair­ man of the Select Committee on Nar­ new DEA study on bail and sentencing re­ recruit and organize the Legion and, by form. "This study was undertaken," Ben­ September, the Legion was trained and cotics Abuse and Control, I would like singer said, "to provide statistical documen­ ready for battle. During the winter of to call my colleagues' attention to three tation of the fact that there is no meaning­ 1779, Pulaski was ordered south to join items bearing on the heroin problem, ful deterrent to crime by our courts today. forces with General Lincoln. Pulaski's both here in the United States and The study indicates that over one-third of Legion arrived in Charleston, S.C., while abroad. In the United States, according DEA defendants convicted of narcotics or the city was under heavy siege and on to Peter Bensinger, Administrator of the more dangerous drugs violations received Drug Enforcement Administration, the probation (24 per cent) or were sentenced the verge of surrender. He succeeded under the Youth Corrections Act (YCA) (11 in lifting the morale and the resolve of availability of heroin ''is at its lowest per cent). Of the total number of convicted the defenders until reinforcements under point in 4 years." In Western Europe, narcotics and more dangerous drugs vio­ General Lincoln could lift the siege itself. however, both usage and addiction to lators, excluding YCA, 61 per cent received General Lincoln, General Pulaski, and heroin is increasing at an unprecedented sentences of three years or less. French Admiral D'Estaing then com­ rate. While we have been successful in The study also shows that prisoners in bined forces against the British troops securing the continued cooperation of a general are serving on an average of 46.7 per who were occupying Savannah. When it number of governments, as evidenced by cent of their sentence, while narcotics of­ both the success of the poppy eradication fenders as a class are serving 43 2 per cent. became apparent that the American and "This means," Bensinger said, "that 50 per Pulaski charged into the midst of the program in Mexico and the destruction cent of the convicted narcotics violators ac­ fighting in an effort to turn the tide. He of heroin and other drugs in , it tually serve less than one year in prison." was severely wounded and died 2 days is clear that the heroin problem is rap­ The study further noted that of the total later aboard the brig Wasp on the way idly becoming a matter of world signifi­ number of convicted or more dangerous to Charleston. Although he was buried cance. Mr. Speaker, I would now like to drugs violators, 81 per cent received sen­ at sea., funeral services were held after­ insert into the RECORD three items fur­ tences of six years or lefs, which according to ther expanding on these themes. The present parole standards, means that four ward in the city of Charleston, and the out of five serious drug violators could have citizens of Savannah, Ga., erected a first is a July 17, 1977, release from the served less than three years. monument to the memory of Count Drug Enforcement Administration on In the bail area, the study noted that Casimir Pulaski. the question of heroin availability in the one-half of DEA's serious defendants were Casimir Pulaski began life as a mem­ United States; the second is an article released awaiting trial on bond (45 per cent) ber of the Polish nobility. With his in­ appearing in the Washington Post, Sep­ or personal recognizance (5 per cent); 71 per herited wealth and high social position, tember 19, 1977, which discusses the in­ cent were released for $10.000 bond or less; creasing usage of heroin in Western and more than one-third were free on bond he could have settled down to a life of (37 per cent) for seven months to over a ease and comfort. Instead, he chose a Europe; and the third is an item appear­ ye3r. life of hardships and sacrifices. A hero of ing in the China Post, August 23, 1977, "The bottom line," Bensinger said, "ls that two continents, Pulaski shall always be with respect to the destruction of drugs our courts are not providing a surety of pun­ recommended as a proud and courageous in Thailand: ishment for drug traffickers. Drug law en­ soldier, the founder of the American HEROIN AVAILABILITY IN UNITED STATES forcement see3 a decline in heroin availabil­ cavalry, and a man who gave his life ity in this country, but the courts must do Heroin availability in the United States, as their part in shoring up our leaky criminal for the cause of American liberty. When measured by heroin price/ purity data and justice system." we celebrate Pulaski Day in honor of this overdose fatalities, is at its lowest point in four years, it was announced today by Drug great American of Polish descent, let us DRUG PROBLEM RISING IN EUROPE-AUTHORI­ also remember the ideals for which he Enforcement Administration (DEA) head Peter B. Bensinger on ABC-TV's "Issues and TIES JOIN U.S. ATI'EMPT TO STOP TRAFFIC fought and died. FROM ASIA Answers". Retail heroin purity is 5.1 percent as of (By Murray Seeger) June 30, 1977, one percentage point lower THE HAGuE.-For years Europeans thought than the recent record low of 5.2 percent dur­ of drug addiction as an American problem. PERSONAL STATEMENT ing the 1973 heroin shortage following the No longer. For example: Turkish poppy ban. Corresponding to this re­ Three men-two Thais from Bangkok and duction in purity is a dramatic increase in a Dutchman-met recently in Copenhagen. HON. THOMASJ. DOWNEY the price of retail heroin to an all time high The Asians handed over a package contain­ OF NEW YORK of $1.65 per milligram. ing nearly 12 pounds of heroin. All three IN THE HOUSE OF REPRESENTATIVES Bensinger noted that the figures for heroin were arrested. Wednesday, September 21, 1977 related deaths and injuries are also encourag­ The First Secretary of the Liberian em­ ing. Heroin fatalities nationally decreased 21 bassy in Sierra Leone flew from to Mr. DOWNEY. Mr. Speaker, on Sep­ percent from the first to the second half of Amsterdam. A sul tease he checked on the tember 19, I was unavoidably absent for 1976. This represented the first such decline flight was opened by customs officers and 55 the consideration of H.R. 4544, the Black since 1973. pounds o! heroin were discovered. A similar, and even more dramatic, decline There have been a number of similar in­ Lung Benefits Reform Act of 1977, and occurred in heroin-related injuries. During cidents. H.R. 8655, a bill to increase the tempor­ the first quarter of last year, 4,336 heroin­ "Almost every city of Western Europe ls ary debt limit. I would like to take this related injuries were reported. The figure for becoming a. center of heroin addiction," an opportunity to list my positions on the the first quarter of this year was 3,021-a. 30 American narcotics agent based in Europe votes related to these two measures: percent drop. said in a recent interview. September 21, 1977 EXTENSIONS OF REMARKS 30249 The number of European users 1s still Dutch have seized 352 pounds, 277 of which INSULATION SHORTAGE-PRICE thought to be far below that of the United came from a single Rotterdam incident. INCREASE States, but it is rising sharply. In West Still the Dutch police do not underesti­ alone, the number of registered mate the difficulty in breaking into the core addicts increased from 2,000 in 1972 to 25,000 of the Chinese drug trade. last year. Drug related deaths in West Ger­ Amsterdam, one of the world's favorite HON. WILLIAM A. STEIGER many, one of Europe's major drug markets, tourist cities, is now plagued by petty crimes OF WISCONSIN rose from 104 in 1973 to 325 last year. committed by addicts trying to support their IN THE HOUSE OF REPRESENTATIVES Persuaded by clear evidence that addic­ habits. Overdose deaths occur a.t a rate of tion is spreading, most European govern­ one a week among the city's 10,000 addicts. Wednesday, September 21, 1977 ments are cooperating with the U.S. Drug About half of the users are foreigners at­ Mr. STEIGER. Mr. Speaker, the Sen­ Enforcement Agency to try to break the tracted by the city's easygoing atmosphere, ate Finance Committee is now consider­ chain that leads back to the poppy fields of the availabillty of drugs and the generous Asia. welfare benefits. ing the tax aspects of the proposed Na­ The European campaign is focused on Amsterdam has always had Chinese users tional Energy Act. During its delibera­ Amsterdam, which police agencies agree is of hashish and opium, and the more recently tions the Finance Committee tentatively the home of the drug trade's biggest whole­ arrived Turkish migrant workers brought in agreed to adopt a residential insulation salers, bankers and killer-enforcers, nearly soft drugs. tax credit along the lines proposed by all of them Chinese. The end of the Vietnam war accelerated heroin sales. Police experts believe that the President Carter. The credit is intended "We can never win this battle, but we to encourage homeowners to insulate believe we can channelize it," Jan van Chinese who were supplying heroin to the Straten, chief of the Dutch National Police American troops in Vietnam started looking their homes. drug unit, said in an interview. "We can't elsewhere for markets as the war wound I opposed the home insulation credit break it completely. There is too much down and the troops were withdrawn. in both the Committee on Ways and money involved." The drugs now coming to Amsterdam orig­ Means and the Ad Hoc Energy Commit­ Proud of their reputation for having a inate in the "Golden Triangle," where Burma, Thailand and meet. This was tee, in part, because I felt the credit liberal, charitable, open society, Dutch of­ would create or intensify a shortage of . flcials admit that the drug problem got out the source of heroin for Vietnam . of hand before they began a serious counter­ Given the Netherlands' history as an in­ insulating materials. attack last year. ternational trading center, its strongly The credit has not yet been enacted, Amsterdam Police Commissioner Gerard rooted Chinese community and its lax drug but its prospects have helped to spur Toorenaar, a colorful officer with a reputa­ laws, Amsterdam was an idea.I point to re­ locate the business. inflation and intensify the shortage. tion for personal bravery, was a lonely voice Materials are in short supply; prices are calling for tougher enforcement tools to help In France and Italy, the problem is less his understaffed force crack the organized serious, but the trend is the same toward increasing. But I am fearful that Con­ international racket. more use, especially among youths. gress will ignore the facts and continue "We didn't like every colleague in Europe Stockholm, , is another major drug on its foolish course. pointing their fingers at us," he said. "We center. In a huge underground arcade in the I recognize that it is probably too can't root out the heroin trade entirely, but center of the city, addicts meet their dealers openly and addicted prostitutes solicit cus­ late to do anything about the insulation we can cut it down." credit disaster, but those willing to weigh Now nearly a year after a series of tough tomers. new laws went into effect, Dutch authorities Britain, which had an enlightened pro­ the proposal on its merits, and disregard are optimistic that they can make some gram of treating addicts with heroin sub­ its political glitter, may be interested in progress. One statute provides for longer stitutes, has now found that addiction to the the following article which appeared in jall sentences, up to 12 years for interna­ real thing 1s on the rise. the Journal of the National Association tional traffickers in place of the previous of Home Builders on September 12: four-year maximum, and up to eight years ANTINARCOTICS EFFORTS-TONS OF DRUGS SERIOUS INSULATION SHORTAGE CoNFmMED BY instead of two for domestic violators. BURNED BUILDER SURVEY Moreover, simple possession of small quan­ Bangkok, Aug. 22 (AP) Thai Prime Minis­ The current shortage of insulation for new tities of heroin now means a short jail term ter Tan in Krai vixien personally put the or a fine, instead of the previous potential home construction appears to be much more torch to more than three tons of heroin and serious and widespread than first reports of a. two-year term that was rarely imposed. other illicit narcotics Monday and said the The national police intelligence unit has indicated. bonfire marked his country's determination More than one-half of the builders and in­ assigned several of its 165 a.gents exclusively to stamp out trafficking. to drug enforcement activities, and the sulation subcontractors who responded to a Tanin, cautioning eager news photogra­ recent survey of NAHB (Journal-Scope, Aug. squad is to be enlarged to 28. One officer has phers to stand back, lit a smoky gunpowder been stationed in Bangkok, a prime shipping 22) say insulation shortages are holding up fuss which raced 50 yards to tons of drugs the completion of housing under construc­ center for drugs. previously doused with kerosene. The U.S. Drug Enforcement Agency has tion in their areas. Diplomats, American antinarcotics officials More than four in 10 of those responding three agents a.t the American embassy here and Thai officials witnessed the fire, which and a. fourth is being added to help train to the survey describe the local supply situa­ took place under strict security conditions tion as being either "serious" or "acute." the Dutch officers. U.S. m111tary police have at a military camp near Bangkok. One offi­ assigned a unit to work with Dutch customs Only one in 10 say it ls "adequate" or "no cial said the loot, seized in 1973, and 1974, shortage" exists in their area. The rest of inspectors watching for drug traffic involving included 660 pounds of heroin and nearly American troops. the respondents-about 45 percent of the In addition, since November, Amsterdam three tons of marijuana and other drugs total-say "some shortage" exists but that police have arrested and deported 700 worth 1.5 mlllion U.S. dollars in Thailand. available supplies a.re being allocated by dis­ Troops armed with rifles kept observers tributors and manufacturers. Chinese a.s illegal aliens. well away from a barbed wire enclosure "We think most of these people were en­ where the bonfire was held. A spokesman for OTHER FINDINGS gaged in trafficking," Van Straten said. the Public Health Ministry said the govern­ Preliminary results of the survey, which ls Nowadays, Asians arriving in Euope a.re ment was eager to avoid an incident similar being conducted by NAHB's Economics di­ examined especially closely for drugs. The to one in June, 1975, when hundreds of vision, were announced last week. agents cite the case of 19 couriers from kilograms of seized heroin and morphine This additional information on the price/ Kuala Lumpur, , apparently sent under the supervision of the ministry dis­ supply situation was disclosed: witll the idea that a.t least some of them appeared without a trace. Results of an in­ Eighty percent of those responding have could get through. vestigation of the loss were not made public. been told by their suppliers to expect possi­ In Vienna, Austrian police found 40 Before the bonfire Monday officials chem­ ble curtailment of insulation supplies in the pounds of heroin on nine of the couriers. In ically tested samples of the heroin. The future. , Belgian agents recovered 30 pounds packages were tossed in a 10-meter long hole Sixty-seven percent of those responding from the other 10. and soaked with kerosene. Troops wearing say they have been told to expect future Two barometers suggest that the Dutch gas masks stood by in case of a wind shift price increases. police have made inroads into the illegal and a flame thrower crew was held "in re­ Those responding say insulation prices traffic. The street price of Chinese heroin in serve." have increased about 25 percent during the Amsterdam rose from about $30 a gram to Tanin, whose government has stressed its last six months and that a.bout half of the more than $160 over the past year. The antinarcotics efforts, said authorities might increase ( 13 percent) occurred during the volume of drug seizures has risen dramati­ hold another bonfire in several months with last two months. cally, from 50 grams (1112 ounce) in 1971, to narcotics now stored as evidence in pending Of the builders who install their own 376 pounds la.st year. So far in 1977, the legal cases. insulation, the large majority-some 78 per- 30250 EXTENSIONS OF REMARKS September 21, 1977 cent-say they buy insulation from local dis­ Jurecki, Dr. Joseph Kij, Henryk Lipok, heavy thundershowers in Mercer, Venango, tributors; 16 percent buy it from lumber Stanely Lesniak, Walter Kusmierski, Clarion, Armstrong, Jefferson, Clearfield and yards; and the remaining 6 percent look to Maria Letyta, Anna Lotarski, Antonina Cambria. No severe weather has yet been re­ insulation manufacturers for their supply. ported ... but brief heavy rain and minor NAHB President Robert Arquilla and other Markut, Stanley Markut, Jan Nagler, urban flooding has occurred.". association leaders are keeping a close watch Bronislaw Nikonowicz, Ludwik Oles, 11: 40 p .m .: "Mud slides and basement on the situation. Karolina Ptak, John Ptak, Krysia Slowi­ flooding in Jefferson County. At 11 :10 p.m., Arquilla and the other senior national kowski, Piotr Smolen, Boleslaw Stepien, a Skywarn observer reported that heavy rain officers met recent ly in Washington with in­ Mary Stepien, Roman Szajta, Mary tonight in Jefferson County has ca.used parts sulation manufact urers, suppliers, and fed­ Sztama, Lilien Szwajda, Stefania Szym­ of Sandy Lick Creek to overflow its bank on eral officials in an effort to focus national czak, Bohdan Wisniewski Maria Route 9 between Falls Creek and Reynolds­ attention on the problem. Chruszcz, Bronislaw Brzoskowski, and ville ... As of 11 :30, there was still light rain Following the emergency meeting on Aug. over the area. Residents should watch for 29, HUD Secretary Patricia Harris, after be­ Janusz Brzoskowski. further rises over the next several hours." ing briefed by Arquilla, assured NAHB of Aloysius A. Mazewski national presi­ 2 :40 a.m ., Wednesday, July 20: "A flash the Carter Administration's interest in seek­ dent of the Polish-American Congress flood warning is in effect until 4 a..m. for ing a quick and fair solution to the problem. and of the Polish National Alliance, persons in Indiana and Cambria counties. Arquilla later brought the problem to the Chicago, was principal speaker. The pro­ Heavy rain and some flooding have been re­ attention of Congress in a personal letter to gram featured a wreath laying ceremony ported in this area .. . Persons should move each member of the House and Senate. and a series of choral and musical offer­ to higher ground immediately if near flood He pointed out that the sudden shortage ings. streams. Do not attempt to drive on flooded has been brought on largely by the diversion highways. Listen for later statements." By then, parts of Johnstown were under of supplies to the retrofitting of existing THE JOHNSTOWN FLOOD OF dwellings. five feet of water. People already were dead 1977-PART II from the rain clouds that had started as a. "There is not enough insulation material trickle at Moraine State Park. to meet the needs of new home construc­ Don Wilson got to his American Legion tion and simultaneously carry out a massive HON. JOHN P. MURTHA meeting at the Hilton Hotel at 10 a .m. Wed­ nationwide program of retrofitting," he OF PENNSYLVANIA nesday. An urgent message was waiting for wrote. IN THE HOUSE OF REPRESENTATIVES him: the Johnstown area was flooded. With­ Arquilla. warned the lawmakers that the in hours he was back in Johnstown, rescuing shortage, if allowed to persist, would have Wednesday, September 21, 1977 the records from the rain gauge he had "dire effects" on the home building industry. Mr. I checked the day before. They would go into MURTHA. Mr. Speaker, would the official archives at the National Climatic like to insert for the information of the Center in Asheville, N.C. Stunned as he re­ CEREMONY MARKS KOSCIUSZKO Members the second part of the article moved the records, Wilson said: "I couldn't ROLE AT THE BATTLE OF SARA­ by Dave Leherr and Stuart Brown of the believe what I saw around me." TOGA Pittsburgh Post-Gazette which tells the "Our people were hungry for reports that story of the Johnstown flood. Today's night; they never got them," said Charles part tells the story of the weather fore­ H. Ryland, acting chief of the Pittsburgh HON. HENRY J. NOWAK casting problem surrounding the area National Weather Service office. OF NEW YORK He explained that while the service has and how it affected the loss of lives: three offices touching on Western Pennsyl­ IN THE HOUSE OF REPRESENTATIVES THE JOHNSTOWN FLOOD vania weather-Pittsburgh, Erie and Har­ Wednesday, September 21, 1977 At noon on Tuesday, July 19, Don Wilson risburg-forecasts for valley areas like Johns­ climbed to the roof of the public safety town have to rely less on radar and other Mr. NOWAK. Mr. Speaker, last week­ building in downtown Johnstown for a. rou­ technology and more on volunteer observers, end, the Polish-American Congress of tine check on the rain gauge there. He some of whom are paid a. minimal fee for the Central and Northern District of emptied the water from the gauge, made a. reporting. New York sponsored a ceremony com­ routine examination of the relatively simple "Any reports we could have gotten to sup­ memorating the role of Gen. Thaddeus equipment and replaced the automatic cha.rt plement our own reports-any reports­ that would take hourly rainfall readings. would have helped," Ryland said. "But we Kosciuszko at the Battle of Saratoga He was not thinking of rain or even of a. weren't getting any at all. We could have during the Revolutionary War. disaster. He was thinking about the next had more definitive stuff put out well before Appointed a colonel of engineers by day, Wednesday, when he would ber6in three midnight. the Continental Congress, Kosciuszko days' leave from his weather Job to attend "Obviously it's too expensive to set up new built the fortifications at Saratoga and the Pennsylvania. American Legion conven­ weather stations everywhere, but we needed this played a key role in defeating the tion in Pittsburgh as a delegate. somebody in that area. The drive to Moraine State Park was a "We h:ard reports later that some people British at this significant battle 200 side trip, but it was then that he spotted were trymg to call different agencies but years ago. Later, this Polish patriot was the black clouds, the thunder and lightning, never got through. We heard the airport assigned the task of preparing American and thought of the coming Boy Scouts' meet­ (near Johnstown) closed at 11 p .m. Some­ defenses along the Hudson River and ing at the park. It was then he decided to body called the Conemaugh Dam but there constructed the fortifications at West check in with Dave Sisk, a. meteorologist at was no answer there. We had one really good Point. the weather service office in Pittsburgh. observer in Indiana County we never heard Last Sunday's ceremony was held at Sisk told Wilson the storm pattern was from. He might have reported a. heavier rain­ the Saratoga National Historical Park, moving southeastward, but with no particu­ fall then we knew. It turned out to be one lar hint of special fury. As the summer after­ of the missing links." Saratoga, N.Y., where a monument to noon played itself out, the two men and Meteorologist Sisk looked at his map show­ Kosciuszko is located. A delegation of other weather experts tracked the passage ing up to 12 inches of rain that had hit approximately 50 persons from the Buf­ of the summer storm, and took note of a points in the Johnstown area. He broke out falo, N.Y., area participated. Those at­ separate storm that pummeled Downtown the hour-by-hour figures for Johnstown it­ tending included Bronislaw Durewicz, Pittsburgh with one-third of an inch of rain self. They began with half an inch of rain between 5:15 and 5:45 p.m. between 6:30 and 7 p.m. on July 19 and president, Western New York Division, continued: ' Polish-American Congress; vice presi­ "The Pittsburgh rain was a. local thunder­ storm," Sisk recalled. "It was a thunder­ 8:50 to 10 p .m .: 2.30 inches. dents Krzysztof Wloch and Jean Kowal­ 10 to 11 p.m.: 1.60 inches. ski, and secretary Richard Solecki. shower caused by afternoon heat. It moved through the district and broke up. 11 p.m. to 2: 50 a.m.: 2.00 inches. Mr. Durewicz has provided me with 2:50 to 3:30 a.m.: 2.20 inches. "The one up north was related, but it was 3: 30 to 4 a.m.: 0.20 inches. this list of other western New York resi­ more of an upper-level disturbance in an dents who participated in the observ­ Total: 8.80 inches. Noting the n~xt-to-last unstable atmosphere and it didn't break rainfall figure, Sisk commented: "This was ance: up. the backbreaker." Agnes Brzoskowski, Zofia Bystron, But the showers that threatened Moraine BUI France came on duty at midnight at Adela Bystryk, Dr. Aleksander Chaber­ State Park had moved southeastward across the Pittsburgh weather office on the 23rd ski, Zofia Dabrowski, Casimer Dabrow­ Mercer, Clarion and Venango counties. By 7 floor of the Federal Building here. He re­ ski, Zofia Durewicz, Janina Durewicz, p.m., Parker, in Armstrong County, had an membered later he received "good briefings" inch of rain, and so did Mercer. from the outgoing crew concerning the heavy Mieczyslaw Durewicz, Andrew Durewicz, On the basis of these and other observa­ rains and warnings that had been issued. Magdalena Ert, Ludwik Ert, Emily Fy­ tions, the Pittsburgh weather office put out Later he ma.de notes on what he saw and derek, Mary Galas, Feliks Galas, Marek advisories that night. heard: Golebiowski, Tadeusz Jasinski, Helena 7 :30 p.m.: ". . . a line of moderate to "Prior to a.bout 1:30 a.m., there was no in- September 21, 1977 EXTENSIONS OF REMARKS 30251 dica.tlon of ad

President Carter's proposal has some [From Newsweek, Apr. 4, 1977] moneys be invested in the workers' own in­ dustry, firm or city. Sometimes, it works out obvious benefits. It would reduce the num­ FINANCING PENSIONS ber of persons on welfare primarily by in­ fine. Not rarely, this violation of the princi­ creasing the number who are supported by (By Paul A. Samuelson) ple of sound diversification of risk proved work. It would insure that work was always It is, sadly, an old story that union pension costly to older workers. ERISA properly set more beneficial than welfare and that a pri­ funds are not al ways handled wisely and limits on such practices. vate job brought in more income than a job honestly. Frank Fitzsimmons of the Team­ Second, union leaders of good will are created with federal funds. Those who could sters union is being criticized today for many tempted to put the money entrusted to them work would be required to work, but in­ of the same things that his predecessors, int;J good causes: ghetto housing projects, creased benefits would be available to those Jimmy Hoffa and Dave Beck, had to be criti­ c1pital-de\·elo;lment banks, environmental in need. Consolidation of current programs cized for in their time. protection. The motives are good. But it is would provide simplicity for administration It is. sadly, also an old story that many hard enough to preserve and enhance capi­ and would reduce fraud and waste. The c:rporate pension funds have not always tal when you are single-mindedly pursuing President's proposal would also give sub­ been handled optimally. Quite aside from that end. It is doubly hard to serve both God stantial financial relief to state and local outright fraud and breach of faith, com­ and Mammon. taxpayers. panies used to go out of business leaving What are the precepts of good manage­ There is no perfect solution to welfare behind t::em unhonored commitments to ment? Poetical experience and theoretical problems, of course, and the President's pro­ workers who face a tough period of retire­ economics agree on a few simple funda­ gram will be open to attack from many sides. ment with no pension income other than mentals. Fiscal conservatives will note that it costs their bare minimum of social security. Diversification of ownership of both stocks more. Some critics will not like the enlarge­ When I hear complaints about the new and bonds, with minimal turnover rates ment of the federal role in welfare, and others regulations under ER! SA (Employee Retire­ and loan-expense ratios-these are the gold­ will not like further expansion of public ment Income Security Act), I remember en rules. employment. Welfare rights advocates will abuses in the old system. And, now that the Anyone can do it. So why not insist that it not approve of the requirement that welfare first hvsteria had d ied d own, we no longer be done? mothers either go to work or lose part of their hear oi many cases where employers have assistance. Some governors may be disap­ been persuaded to omit pension plans for (From the Washington Star, Mar. 20, 1977] pointed that the federal government is not fear of the red tape involved. DISTRICT OF COLUMBIA FACING STAGGERING taking over all welfare expenses and other There is no excuse in this age for scan­ PENSION DEBT governors will object to the fact that over dalous mishandling of pension funds. Good half of the fiscal relief for states will go to and prudent management-they are the (By Rebecca Leet) California and New York. same thing in an uncertain world where no Like a raincloud hovering over flooded I have no trouble in principle with the one can guarantee lucky investment results land, a $2 billion liability is hanging over program the President has put forward. I but where intelligent procedures can be the heads of District taxpayers. Unless some­ am not prepared to say that I can support agreed on-are available to organizations thing is done to reduce it in the near future, all the particulars of the program. but I do that want tl:em. Just last week, for example, the impact on the city government could be anprove of its general concepts: a rejection several New York City pension funds re­ staggering. of the present welfare system. an effort to formed their portfolio practices by convert­ The liability has built up over the years prevent the break-U'•) of families, a require­ ing a portion of their assets to "index" funds. because the city has paid the pensions of its ment that able-bodied people should work. police, firemen, teachers and judges mostly OLD WAYS on a pay-as-you-go basis-from general op­ an effort to get peoule off welfare rolls and Pension management was not al ways so on to payrolls. and the di vision of poor erating revenues of the city rather than from easy. Historically, trade unions came to grief pension funds built up by yearly contri­ people into two categories: those who are in this area for reasons quite beyond their able to work and thoc:e who are not. I do butions. have que<;tions abot1t higher costs. about the control. According to Treasury Department projec­ imuact of the President's proposals on pres­ Cr 1ft unions often began in the nine­ tions, by the end of the century, city tax­ ent job and health care programs. and about teenth century as beneficial cooperatives. payers could be paying more each year to the ultimate chances for success of the Presi­ Living workers were assessed to pay burial support former city workers than to meet dent's program as a whole. expenses and minimal survivors' benefits for the salaries of those teaching their children workers who died or reached retirement. and protecting their homes. Actuarial funding of this obligation seemed Financial experts predict that point will out of the question; yet it did not matter be reached in 2012 when city taxpayers, as­ so long as the trade and the union continued suming cost-of-living and other pension ad­ FUNDING MUNICIPAL PENSIONS to grow. But when the time came th3.t in­ justments in the intervening years, will pay d us try did not need new glass blowers, or out a half-billion dollars in pensions. when new workers deserted the old benefi­ And every year after that the amount cial associations precisely to avoid their ac­ would get bigger. HON. STEWART B. McKINNEY rued obligations, these voluntary systems The city has known of this growing prob­ OF CONNECTICUT broke down in bankruptcy. lem for years. So has Congress, which ap­ IN THE HOUSE OF REPRESENTATTVES When lecturing at a small Roman Catho­ proved the pay-as-you-go pension system for police and firemen and approved converting Wednesday, September 21, 1977 .ic college. I found that many of the mo­ nastic orders are facing a similar crisis today. the teachers' funded system to an unfunded Mr. McKINNEY. Mr. Speaker, I would A nun who is a Ph.D. in economics told me system-at the city's request-in 1970. The like to call my colleagi..;,es' attention to that her old-age support is in doubt now pension system for the judges is underfunded and must be augmented by city operating two recent articles on the dangers of that her order cannot recruit new members. " Why not go under social security?" I asked revenues. allowing municipal employee pension na'ively. Her reply was sad: "That would re­ Lots of other American cities have used funds to go unfunded. These articles, the quire a million dollars in catch-up; and we the same pay-as-you-go system. And many, first by Nobel Prize-winning economist just don't have the money." like the District, are now moving to deal with their large pension liabilities-in no small Paul Samuelson, Newsweek, April 4, 19f7. MODERN PITFALLS part because of New York City's financial and the second bv Rebecca Leet. Wash­ I ought to add th3.t our social-security woes. ington Star, March 20 , 1977, are particu­ system is also an actuarially unfunded sys­ New York City discovered to its regret that larly pertinent to the House's considera­ tem. It would be disastrous to let people opt investors who buy municipal bonds are re­ tion of H.R. 6536, the District of Colum­ to go in and out of the system at will. For­ luctant or refuse to buy the bonds of a city tunately, there is no danger of that. Still, which has a huge pension debt. The District bia Retirement Re.form Act. there is no obligation for this generation to is expected in the next few years to begin H .R. 6536 addresses the problem of have children at the same rate as did pre­ selling municipal bonds. "staggering" liabilities in the pension vious generations. Therefore, when those Aside from the difficulty of selling bonds, funds of the District's police, firemen, born during the baby-boom period of the if the District does not begin whittling away '50s reach retirement age in the next cen­ at the pension liability it will become an teachers, and judges reported by Ms. tury, their stipends will be felt as more of almost impossible financial burden for a Leet by providing for the funding of a burden by the thinner ranks of the then city which is watching its tax base shrink $2 .03 billion in unfunded liabilities built working population. yearly. up over the :vears. Additionally, H.R. 6536 Two other perils dog union pension funds. Beginning tomorrow, the Fiscal and Gov­ includes prohibitions against the invest­ First, there is always someone-an employ­ ernment Affairs subcommittee of the House er, a beleaguered city treasurer, your friend­ District Committee will hold three days of ment of District of Columbia employee ly congressm1n dreaming of "worker capi­ hearings on the pay-as-you-go system. Also pension funds in the type of local invest­ talism" or the local bargaining agent con­ to be considered will be a proposal, intro­ ments warned against by Mr. Samuelson. cerned that a factory not go out of busi­ duced by Rep. Romano L. Mazzoli, D-Ky., The two articles follow: ness-who is advocating that the pension for converting to adequately funded sys- 30258 EXTENSIONS OF REMARKS September 21, 1977 terns for the three groups, which currently RE ::: ORD an address by the Honorable markets was fully recognized by business­ comprise 38 percent of the city work force. Arthur F. Burns, Chairman of the Fed­ men. the need to scale back had become The remainder are covered by the federal civil enormous. The worst recession in a genera­ service retirement system. eral Reserve Board, at the Jacksonville tion ensued. A proposal similar to Mazzoli's died in the University commencement exercises on The only positive aspect of that traumatic House during the last Congress, in large part August 13 . This address focuses upon the episode is that it finally opened the eyes of because the White House's Office of Manage­ importance of an independent Federal many economists and public officials to the ment and Budget stated that it did not be­ Reserve Bank in conducting our Nation's fact that inflation and unemployment are lieve the federal government should be a monetary policies, especially in light of not alternatives for our economy. The mes­ financial participant in resolving the lia­ the inflationary pressures in our econ­ sage is now clear that inflation in time causes bility. omy: serious unemployment. Understanding of Whether the OMB position will change that relationship is gradually tending, I with the new Carter administration is un­ THE IMPORTANCE OF AN INDEPENDENT believe. to make public policies more sensible. known. President Carter asked recentlv for a CENTRAL BANK Some of you in this audience may be won­ task force to review various District financial (By Arthur F . Burns) dering, I suspect, whether the Federal Re­ problems and prepare a comprehensive plan It is a pleasure for me to be here on the serve may not have something to do with for meeting them. He indicated that he ex­ campur. of Jacksonville University to join in the inflation we have been experiencing. It pects a representative of OMB to be on the honoring this graduating clas,. I say that may fairly be asked: Has not the Federal task force. m : s~ sincerely. Having spent the greater part Reserve been creating too much money? And Even under Mazzoli's proposal, the Dist rict of my life as a university teacher, I always may not this be one of the causes of our would pay 80 percent of the cost. The federal take satisfaction in the scholastic achieve­ inflation? share would be an estimated $766 million ment of young men and women. This is right­ The question is. indeed, often put to me, through the year 2012 with about $48 mil­ fully a proud moment for you. and I very and I welcome it because of the opportunity lion being appropriated in fiscal year 1978. much appreciate being able to share it. it affords to clarify the nature of the dilem­ A glance at that year 2012, when the Dis­ Today, I would like to talk to you about ma our country faces. Neither I nor, I be­ trict begins to go-it-alone on pensions, pro­ an issue that has been important thr:mghout lieve, any of my associates would quarrel \"ides a graphic picture of why the city needs much of recorded history and which is cer­ with the proposition that money creation to transfer to a funded system. tain to influence your li,·es-for better or and inflation are closely linked and that In that year, under the pay-as-you-go sys­ worse. I refer to go·,ernment's m:inagement serious inflation could not long proceed with­ tem. the city would take $522 million from of money-a function that in our country is out monetary nourishment. We well know­ i.ts operating budget to pay retirees. lodged by statute with the Federal Reserve as do many others-that if the Federal But if it begins con\·erting next year to a Svstem. Reserve stopped creating new money, or if funded system, it will in the year 2012 take · No nati::::n whose h:story J am familiar with this activity ·.vere slowed drastically, infla­ only $465 million out of its operating budget, ha~ succeeded in managing the stock of tion would soon either come to an end or be and that will go into tne pension fund. money perfectly. Few, indeed, have even substantially checked. And, if the city not only begins to convert man:1.ged it well. And those societies that Unfortunately, knowing that truth is not to a funded system. but also adopts the bene­ have been least successful have paid dearly as helpful as one might suppose. The catch fit changes proposed by Mazzoli, in the year for their ineptitude. Debasement of the cur­ is that nowadays there are tremendous non­ 2012 it would take only $381 million out if rency had a great deal to do with the destruc­ monetary pressures in our economy that are its operating budget-a savings of $140 mil­ tion of the Roman Empire. In our own times, tending to drive costs and prices higher. lion in one year alone. excessive creation of money has released This, I should note, applies not only to our Few of the benefit changes being proposed p owerful inflationary forces in many coun­ country, nor is it anymore just a phenome­ by Mazzoli would affect current police, fire­ tries around the globe. And once a nation's non of wars and their aftermath as tended men. teachers or judges. The one which money is debauched, economic stagnation once to be the case. Rather, powerful upward would most affect them is a tightening of and social and political troubles usually fol- pressures on costs and prices have become requirements for disability retirement, a gen­ 1:w. worldwide, and they persist tenaciously erally acknowledged area of abuse. Each of you in this assemblage, whatever through peace-time periods as well as wars. Those who retire after 20 years service. not your age. has experienced at first hand some This inflationary bias reflects a wide range on disability, receive 50 percent of their high­ of the consequences of monetary stress. For of developments that have been evolving est year's salary. and it is taxable. Those who a dozen years now, our Natio:i has been over a span of decades in both governmental retire on disability receive 662 3 percent of subjected to a relentless siege of inflation and private affairs. Foremost among these their highest year's salary and it is taxfree. that has conferred undeserved windfall developments is the commitment of modern Although the rate has improved since, in gains on some and undeserved hardships on governments to full employment, to rapid 1969 the District had a worse disability re­ others. In terms of social well-being, these economic growth, to better housing, im­ tirement record than New York. Ninetv-nine capricious pluses and minuses by no means proved health, and other dimensions of wel­ percent of the firemen retiring and 9.8 per­ cancel out. Young people wanting to buy a fare. These are certainly laudable objectives, cent of the policemen retiring did so on dis­ home these days know that the price of but they have too often caused governmental ability. decent shelter has soared almost out of reach. spending to outrun revenues. And a survey by The Star in 1975 showed Parents across the country know the shock­ Other developments-such as the escalator that city t e achers were retiring on disability ing extent to which tu'tion costs have arrangements that various economic groups at a rate double or triple that of teachers ballooned. And woe to anyone who has major have achieved through their efforts to escape in the suburbs. medical expenses and is not adequately the rigors of inflation-have speeded the The bill would also eliminate the contro­ insured. transmission of inflationary impulses across versial clause which allows an officer to re­ Those, moreover, are merely among the the economy. What we as a people, along with tire on full disability for aggravating-while most readily visible consequences of ir.fla­ other nations, have been tending to do is to on duty-an off-duty injury. Currently, offi­ tion. There are other less apparent effects subject available resources to increasingly cers who aggravate off-duty injuries, like old that are even more pernicious. Once a na­ intensive demands; but we at the same time football injuries, can retire on full disability tion's economy has been gripped by inflati:m, have sought to insure that incomes do not pay. it becomes virtually impossible t:> maintain get eroded when excessive pressures on re­ Also a board of surgeons would determine an environment in which jobs are plentiful sources generate inflation. This amounts, un­ the percentage of impairment caused by an and secure. The economic recession of fortunately, to creating upward pressures injury. After that determination. the retire­ 1974- 75, in the course of which unemploy­ on costs and prices, and then arranging to ment board would determine the percentage ment climbed to a level above 8 million perpetuate them. That is the awesome com­ of disability a retiree should be awarded, persons, would not have been nearly so bination that fighters against inflation have based on t he impairment, age, the prior posi­ severe-and indeed might not have occurred to try to counter. tion held. the nature of the injury, and fac­ at all-had it not been for the inflationary Theoretically, the Federal Reserve could tors affecting future capacity to earn a distortions of the preceding several years. thwart the nonmonetary pressures that are living. That is clear, I think, from the sequence tending to drive costs and prices higher by of events. Double-digit inflation severely providing substantially less monetary growth drained many family pocketbooks, reduced than would be needed to accommodate these consumer confidence, and led to more cau­ pressures fully. In practice, such a course THE IMPORTANCE OF AN INDE­ would be fraught with major difficulty and PENDENT CENTRAL BANK tious consumer S?ending. Busir.essmen, how­ ever, were slow in responding to the weaken­ considerable risk. Every time our government ing of consumer markets. They seem to have acts to enlarge the flow of benefits to one HON. RICHARD KELLY been blinded by the dizzying advance of group or another the assumption is im­ prices and by the effect of that ad,- mce on plicit that the means of financing will be OF FLORIDA their nominal profits. They thus continued available_ A similar tacit assumption is em­ IN THE HOUSE OF REPRESENTATIVES aggressive programs of inventory expansion bodied in every pricing decision, wage bar­ gain, or escalator arrangement that is made Wednesday, September 21, 1977 and capital-goods expansion longer than was prudent, thereby causing economic im­ by private parties or government. Mr. KELLY. Mr. Speaker, for the balances to cumulate to major proportions. The fact that such actions may in com­ benefit of my colleagues I include for the By the time the weakening of consumer bination be wholly incompatible with mod- September 21, 1977 EXTENSIONS OF REMARKS 30259 erate rates of monetary expansion is seldom Congressional " power of the purse" will not tion. That, I believe, is the real thrust of the considered by thorn who initiate them. If be used in an effort to induce System officials diverse efforts to "reform" the Federal Re­ the Federal Reserve then sought to create to pursue policies that they otherwise might serve System. It is perhaps of some signif­ a monetary environment that seriously fell consider poorly suited to the Nation's needs. icance that such proposals not infrequently short of accommodating the nonmonetary The Federal Reserve has th us been able to come from individuals who are basically dis­ pressures that have become characteristic of fashion monetary policy in an impartial and satisfied with what they regard as exressive our times, severe stre~ses could be quickly objective manner-free from any sort of par­ Federal Reserve concern with battling infla­ produced in our economy. The inflation rate tisan or parochial influence. While the long tion. would probably fall in the process but EO, too, history of the Federal Reserve is not fault­ The element of populism in all this is would production, jobs, and profits. less. its policies have consistently been man­ strong-particularly the preoccupation with The tactics and s,trategy of the Federal aged b y conscientious individuals seeking the maintaining low interest rates. It makes no Reserve System-as of any central bank­ Nation's permanent welfare-rather than difference how often Federal Reserve officials must be attuned to these realities. With today's fleeting benefit. Significantly, this repeat that the System's continuing objective sufficient courage and determination, it is country's record in dealing with inflation­ is the lowest level of interest rates com­ nevertheless within our capacity to affect albeit woefully insufficient-has been much patible with sound economic conditions. That the inflation rate significantly. We may not, better generally than the record of countries is not enough. What is desired is assurance as a practical matter, be able to slow mone­ with weak central banks. Indeed, I would that interest rates will be kept permanently tary growth drastically within any given judge it no accident that West Germany and down, or at least not be allowed to rlse short time span, but we do have consider­ , which in recent years also have significantly. able discretion in accommodating the pres­ m anaged their economy better than most The Federal Reserve cannot, of course, sures of the marketplace les.s than fully. others. happen to have strong and independ­ give that kind of assurance. In a period of We are, indeed, often engaged in probing ent monetary authorities like ours. rising demands for funds. a determined effort and testing our capacity to do just that. The degree of independence which Con­ by the System to keep interest rates down And, while we must be cautious about mov­ gress has conferred upon the Federal Reserve could quickly turn the Federal Reserve into ing abruptly, my colleagues and I in the Fed­ has been a source of frustration to some '.WV­ something akin to the engine of inflation eral Reserve System are firmly committed ernment officials since the Federal Res'erve that it was during the early Korean War to a longer-term effort of gradual reduction Act first became law. Certainly, from the period when the System unwisely tried to standpoint of the Executive Branch, it would in the rate of growth of money-something at times-perhaps often-be more convenient keep interest rates down so that the cost or that is reflected in the progressio.n of steps to instruct the central bank what to do than financing the Federal debt would not esca­ we have been taking to lower permissible to reckon with the System's independence. late. Actually, the consequences now would growth-ranges for the money supply. Slowly In the end, however. the country would not almost certainly be far worse than they were undernourishing inflation and thus weaken­ be as well served. The Federal Reserve, it a quarter century ago because the public has ing it seems the most realistic strategy open needs to be emphasized. seeks earnestly to become far more sensitive to inflation. to us. We believe that such an effort-es­ support or to reinforce governmental p c-:icies Long-term interest rates, in particular, pecially if Congress becomes less tolerant to the maximum extent permitted by its of budget deficits-will ultimately create tend to respond quickly nowadays to chang­ responsibilities. ing inflationary expectations. Once the fi­ a much healthier environment for the deter­ When the System's actions depart, as they mination of wages and prices. occasionally have. from the way in whi.ch the nanci3.l community perceived that the Fed­ The capacity of the Federal Reserve to Executive Branch would wic::h it to act, that eral Reserve was pumping massive reserves maintain a meaningful anti-inflationary pos­ is generally because the System tends to take into commercial banks with a view to creat­ ture is made possible by the considerable de­ a longer-range view of the Nation's weifare. ing monetary ease, fears of a new wave of gree of independence it enjoys within our Actually. most of the time, monetary and fis­ inflation would quickly spread. Potential government. In most countries around the cal policies are well coordinated and mutnally suppliers of long-term funds would then be world, central banks are in effect instru­ reinforcing; in other words, they are the inclined to demand higher interest rates as mentalities of the executive branch of gov­ product of continuing and fruitful discus­ protection against the expected higher rate ernment-carrying out monetary policy ac­ sions between members of the Administrati0!1 of inflation. Borrowers, on the other hand, cording to the wishes of the head of govern­ and Federal Reserve officials. would be more eager to acquire additional ment or the finance ministry. That is not the Not only is dialogue continuous with the case in this count ry because the Congress funds, since they would expect to repay their Executive Branch of government, but Fed­ loans in still cheaper dollars. across the decades has deliberately sought eral Reserve officials appear frequently before to insulate the Federal Reserve from the Congressional Committees-something that In short, heightened inflationary expecta­ kind of political control that is typical works, on the one hand, to keep Congress tions would soon overwhelm markets in to­ abroad. The reason for this insulation is a informed as to System activities and which, day's inflation-conscious environment by ac­ very practical one, namely, recognition by on the other, affords Senators and Congress­ tually causing long-term interest rates­ the Congress tha,t governments thro1.1ghout men an effective means of registering ap­ which are generally more important to the history have had a tendency to engage in proval or disapproval of Federal Reserve economy than short-term rates-to rise. The activities that outstrip the taxes they are policy. In practical terms, the economic policy of seeking lower interest rates by willing or able to collect. That tendency has policy dialogue that is always in process flooding banks with reserves would thus be generally led to currency depreciation, within our government produces a thorough frustrated. And I need hardly add that ad­ achieved by stratagems ranging from clip­ exploration of options. It may fairly be said, verse effects on production, employment, and ping of gold or silver coins in earlier times I believe, that the System's independence to excessive printing of paper money or to results in a more thorough discussion and the dollar's purchasing power would follow. coercing central banks to expand credit un­ thrashing out of public issues than would The Federal Reserve System, I assure you, duly in more modern times. otherwise occur. will not be deterred by the drumbeat of du­ With a view to insuring that the power of Despite the salutary influence that the bious propositions concerning money and in­ money creation would not be ~milarly abused Federal Reserve's independence has had on terest rates. We are determined to continue in our country, the Congress has given our our Nation's economy, legislative proposals on a path of further gradual unwinding of central bank major scope for the independent that would place the System under tighter the inflationary tendencies that have be­ exercise of its best judgment as to what rein keep being introduced in Congress. The come so deeply embedded in our economic monetary policy should be. In fact, Congress proposals that have been put forth over the life. We are determined to continue promot­ has not only protected the Federal Reserve years cover a wide range-for example. to enlarge the size of the Board. to shorten the ing the expansion of our economy and yet System from the influence of the Executive control the sur ply of mor ey so as to prevent a Branch; it also has seen fit to give the System terms of its members, to enable the Presi­ a good deal of protection from transitory dent to remove Board Members at will, to new wave of inflation. Such a policy, I firmly political pressures emanating from Congress diminish or eliminate the role of Federal Re­ believe, is the only responsible option open itself. serve bank directors, and to subject the Sys­ to us. Probably the two most important elements tem to the Congressional appropriations I hope that I have succeeded today in con­ making for Federal Reserve independence are process or to audit by the Government Ac­ veying some sense of the importance to you the following: First, the seven members of counting Office. In recent years, there have as individuals and to the Nation generally the Federal Reserve Board serve long and also been proposals calling for numerical of the Federal Reserve's role in our govern­ staggered terms and can only be removed for forecasts of interest rates or other sensitive ment. Fortunately, despite the criticism that "cause." This arrangement severely limits magnitudes, which if ever undertaken by the is not infrequently voiced by some members Federal Reserve, could unsettle financial possibilities for any "packing" of the Board of congress, the Congress as a whole has kept and enables members of the Board to act markets, besides misleading individuals who lack spohistication in financial matters. the Federal Reserve's role in a clear perspec­ without special concern about falling out of tive and has fully protected the essentials of grace politically. Second, the Federal Reserve The shortcomings of these individual pro­ System finances its activities with internally posals matter less, however, than what ap­ Federal Reserve independence. That will con­ generated funds and therefore is not subject pears to be their common objective, namely, tinue to be the case only if you who are to the customary appropriations process. This to reduce the Federal Reserve's independence graduating today and other citizens develop arrangement is intended to assure that the and to restrict its scope for discretionary ac- a full understanding of what is at stake. 30260 EXTENSIONS OF REMARKS September 21, 1977 GENOCIDE THE HANOI WAY pations in North Vietnam to take their own southerners found themselves without jobs, lives. or any means of supporting their families. COMPLETE TAKEOVER BY THE NORTH Some families committed suicide together, some took to robbery, and some sought to HON. LARRY McDONALD The past two and a half years have proved OF GEORGIA live by their wits. The Communist authori­ both better and worse than had been ties offered only one let-out, re-settlement IN THE HOUSE OF REPRESENTATIVES feared-and there were not a few surprises. in "New Economic Zones." People were of­ Vietnam was formally reunified, the restora­ Wednesday, September 21, 1977 fered a few sticks to build a shelter, seed, tion of the Hanoi-Saigon railway link re­ and subsistence for three or four months, Mr. McDONALD. Mr. Speaker, Mr. ceiving top priority so that its completion if they would settle in one of the zones P. J. Honey, of the University of London, might symbolise national unity. and grow their own food. Huge numbers is one of the world's real experts on The Fourth Congress of the Communst went-over three quarters of a million have Vietnamese communism. He recently de­ party last December publicly asserted the already gone from Saigon alone-but the party's supremacy in all matters, thereby re­ reality is appalling. Conditions proved im­ scribed how the "people's paradise" is moving any misapprehensions about the taking shape in South Vietnam. Press possibly difficult; land was often unsuitable secondary role of the National Assembly and or unirrigated; there were no tools; soap, reports have already described the new the Government, and a new national con­ medicines, utensils, and other essentials resistance movements that are forming stitution is being drafted. These things were were unobtainable; corrupt officials pocket­ against Communist rule. Professor predictable. but less so the monopoly of ed much of the maintenance funds. The mor­ Honey describes the changes in everyday power in South Vietnam exercised by the tality rate among the very young and the North Vietnamese to the virtual exclusion very old exceeded 90 per cent in some zones, life of the South Vietnamese. He points of all southerners, even those who had out that the "bloodbath" was not as ex­ and most of those re-settled cannot do more loyally fought for or supported the Com­ than keep starvation at bay. tensive as predicted, but that it is taking munist side during the war. The military place in a more subtle way wherein per­ victory revealed that the historical regional CITIES LEFT TO THE CIVIL SERVANTS sons deemed "undesirable" from Hanoi's antagonisms in Vietnam are as alive today Like Cambodian Khmers Rouges, the Viet­ view languish in "reeducation" camps as they ever were. namese Communists believe cities to be where life is hard and many die from Despite their menacing talk of "blood evil, so they plan to shift most of the pop­ malnutrition and various illnesses. The debts." the Communists did not carry out ulation to agricultural work in the country­ mass executions. Some well known figures side. Only civil servants and industrial work­ most interesting point he makes is that were killed immediately, but most of those ers will be permitted to remain in the cities. graft, corruption, and all those bad prominent in South Vietnamese political Already the dead hand of Communism is things that supposedly took place only life, together with military officers, police­ visible in Saigon, where every street is de­ under Diem continue to thrive. The item men. and civil servants, were imprisoned serted by 9 p .m. and the only lights to be follows: in euphemistically termed "re-education seen after that hour are the street lamps. [From the London Daily Telegraph, Aug. 30, camps." Life in these is extremely harsh, Doubtless the behaviour of the northern 1977] with the inmates obliged to carry out hard Communists since the capture of Saigon has labour, to exist on a near starvation diet, confirmed the regime in this belief. GENOCIDE THE HANOI WAY and to confess their past "sins," while liv­ The scale of official corruption in South (By P. J. Honey ) ing in the most primitive conditions without Vietnam is vast, and it extends downwards When on Sept. 2, 1945, the Viet Minh pro­ medical attention or even medicines. from the highest cadres to the humble bo­ claimed the "independence of the Demo­ Many died of malnutrition or untreated doi. or foot soldier. Corruption was rife cratic Republic of Vietnam" prominent sickness and others, unable to support such under previous regimes, and rightly criti­ points in its programme were : an existence. resorted to suicide. No terminal cised, but it was the kind which offered fa­ 1. Freedom of belief and of assembly date was put on detention and almost all vours or good in return for money. 2. Freedom of commerce those arrested are still being held, but the Today the welter of regulations, decrees, 3. Every peasant will own his own land few who have secured release must report ordinances, and so on, introduced by the South Vietnam was "liberated" with the daily to the police on their own activities, Communists is so comprehensive and op­ entry of Vietnamese Communist troops into whom they met. what was said, and so on. pressive that nobody can live without break­ Saigon on April 30. 1975. The war was over, and to "volunteer" for every manual labour ing at least some of the regulations. This with its shelling, air raids, pitched battles, appeal the Communist authorities may make renders everyone vulnerable, and the north­ and dreaded daily toll of casualties. That was under pain of being branded backsliders and ern Communist officials can extort money, unreservedly welcomed by every Vietnamese returned to the dreaded camps. The most goods, or services from the hard pressed whether northern or southern, but what of import ant detainees were moved from South southerners merely by offering to turn a the other consequences of Communist Vietnam to the inhospitable and insalubri­ blind eye towards some transgression. In victory? ous region of the Chinese frontier. addition, almost everything is for sale to The gaiety. vitality, well stocked shops and Schools, colleges. and universities were those who can raise enough money, exit markets, seet hing traffic, irreverent and con­ taken over by the Communist authorities, visas, "illegal" escap1:: by boat, immunity tentious Press, rebellious students-indeed, who obliged every teacher to undergo po- from prosecution for black marketeering, all the things that made Saigon Saigon­ 1, tical re-education and satisfy his instruc­ prostitution, drug peddling, and so on, but would inevitably disappear. In the country­ tor before he could continue to exercise his payment must be in gold or hard currency. side the thriving farms, modern agricultural profession. Students, too, had to be politi­ Whatever their ideology, today's Communist machinery, motorised transport on road. cally indoctrinated and admission to higher rulers have proved themselves very hard­ river, and canal. the newly acquired tele­ education is now granted on the basis of headed businessmen in their personal af­ visions, radios, and record players, every­ social class and past political affiliation, not fairs. thing which had removed t he drudgery from academic achieYement. Meanwhile Vietnam's proletarian paradise farming during the preceding decade, would The new rulers immediately seized the progressively takes shape. disappear too. Drab, colourless collectivised television and radio stations, newspapers, uniformity would be imposed, administered and publishing houses, establishing a State by a stifling St£.te bureaucracy appointed on monopoly over the media. This was followed grounds of political acceptability rather than by the mass destruction of books in shops, POLITICS AS USUAL efficiency, flair, or ability. libraries, or private bookshelves, and the Such changes would surely come, and were banning by name of all South Vietnamese accepted by the South Vietnamese because authors. Hundreds of tons of "approved" HON. JAMES ABDNOR of their inevitability; the worry was how books were sent down from the North, all OF SOUTH DAKOTA they would be introduced. Would agricul­ of them published under the Communist tural collectivisation be brutally enforced as regime there. though one of the ironies IN THE HOUSE OF REPRESENTATIVES it had been in the North, with the terror of of Saigon is the sight of northern cadres Wednesday, September 21, 1977 the people's courts. the false accusations. avidly reading banned books they have il­ public exP.cutions, and "isolation" of politi­ legally saved from destruction and recom­ Mr. ABDNOR. Mr. Speaker, there is cal undesirables until they either committed mending them to their colleagues. an old saying to the effect that the more suicide or died from starvation? The systematic stripping of South Viet­ things change the more they remain the That campaign had driven the northern nam, not only of luxury goods but of fac­ same. Politics is no exception, unfortu­ peasantry into revolt and rocked the Com­ tory and agricultural machinery, the closure nately, as we have been seeing in recent munist regime. Would it be repeated in the of commercial enterprises, and the cessa­ South? Businessmen. traders. and manufac­ tion of foreign trade caused much unem­ weeks. The following editorial from the turers were scarcely less apprehensive about ployment, particularly in the cities. After Sioux Falls Argus Leader pretty well the possibility of another "census" such as they had Eold the last of their possessions sums up the thoughts of many South the one which had led people of these occu- in the flourishing black market, desperate Dakotans concerning these happenings. September 21, 1977 EXTENSIONS OF REMARKS 30261 PRESIDENT CARTER'S STYLE: POLITICS AT THE would like to bring to the attention of letter written to the editor of Today's SAME OLD STAND my colleagues the following editorial: Spirit in Hatboro, Pa. It was written by Recent events surrounding the Bert Lance jFrom The Ventura County (Calif.) Star- a constituent of mine, Mr. Bob Fishback affair have left many Americans wondering Free Press, Sept. 11, 1977] of Huntington Valley, Pa.: what happened to the man who was sup­ PANAMA : WHY THE RUSH? u .s. SHOULD BOYCOTT THE ARABS Too posed to bring a new version of politics to Some comment about the Panama Canal If Golda Meir could set up a branch capi­ the White House-Jimmy Carter. Treaties seems called for-in fact, some of tol in Cairo, you wouldn't go cold this winter, Carter marketed himself during the last our readers have insisted that we "take a p 1y more for gas than you ever dreamed pos­ election as a down-home. folksy peanut stand" on this issue, which is a bit surpris­ sible, go to work in the dark or worse yet, farmer with vision, honesty and integrity. ing. It's not the sort of issue that has much find your job affected. He was a man opposed to political payoffs, impact on our readers personally, but many We feel the results of the oil shortage a man galled by ward politics, a refreshing of them seem quite concer,1ed. while the politicians are bombarding the breath of fresh air, a man who would sur­ Our comments aren't likely to satisfy media with tales of economies in their round himself with people of the same stripe. those who are most concerned, which is to travel plans. The central issue is that some Carter's conduct during the last several say, those who are vigorously opposing the Arab nations and their Soviet friends are weeks-and that of his White House press treaties. The treaty supporters seem unable blackm1iling us. secretary Jody Powell- might tell us we have to work up equal enthusiasm. Curiously it was American pressure that just another batch of hack politicians. What concerns us most about the treaties has twice saved ( 1956 and 1973) from It _has com~ out that Carter made pre­ is timing: Why the rush? being conquered by the Israeli army. elect10n promises to his cronies, like Budget President Carter had valid reasons to let Boycotts are a two-way street. The United Director Bert Lance. Carter is reeling at the the canal negotiations simmer on the stove States should immediately cut off all sup­ strong opposition to the Panama Canal a bit longer, since he's been in office for less plies to those oil-rich countries trying to Treaty. than eight months, and he has a long list shut us out. We should end economic ties As a result, the Carter popularity of the of items awaiting his attention that should with any other country that helps the Arab last several weeks has sunlc to an all-time have taken priority over a canal agreement. nations who boycott us. low, . polls sa;r- His judgment and integrity After 14 years of negotiations on a treaty This might. for example, mean ending our are m question. And, his holier-than-thou that transfers the canal in 22 years, why Russian wheat deal and all other trade with self-righteousnes is impairing the smooth the rush? the USSR. progress of government, critics argue. The timing of the signing ceremonies is Such a strong step would require Con­ Take the Lance incident, for example. Car­ even harder to accept. The treaties mean gress and the White House to find some ter continues to support this fast-shuffle nothing unless they are ratified by two­ courage and put the American public ahe"ld banker from Georgia whose personal money thirds of the U.S. Senate. and the Senate of the Arabs. It requires a higher priority for management is questionable, at best. Testi­ probably won't get around to voting on the people of this great country than for the mony has substantiated that he was going the canal treaties until January or Febru­ big oil companies who aid the Arab cause. to receive appointment to high political of­ ary-perhaps five months after the show­ Arab shieks may be rich, but they can't fice-before the election. biz signing of the treaties by President eat sand and drink oil.-Bob Fishback, Carter and Panama's chief, Gen. Omar Tor­ In most parts of the country, this is called Huntington Valley. political patronage, pure and simple. Carter rijos. The formal signing is an obvious ploy told us during the campaign that he was part to pressure the Senate into ratification, of a new breed. making the ceremony both cynical and pre­ mature. ROSENTHAL RESPONDS TO RHODES Carter is nothing new. It's politics at the ABOUT FEDERAL BANKING same old stand. In fact, Carter is showing a One provii:;ion of the treaties requires remarkable lack of political savvy in his sup­ their ratification by the people of Panama AGENCY AUDIT ACT port of Lance. in an election there, which raises the in­ T~e P?lls will probably show a continuing evitable question: Why not an election HON. BENJAMIN S. ROSENTHAL declme m Carter popularity after the Jody here? Powell incident last week. One reason might be that Gen. Torrijos OF NEW YORK Sen. Charles Percy of Illinois is a member has more control over election results in IN THE HOUSE OF REPRESENTATIVES Panama than :'resident Carter has over of the Senate Governmental Affairs Commit­ Wednesday, September 21, 1977 tee and a critic of Budget Director Lance. elections here. Another explanation is the Powell tipped the Chicago Sun-Times that terms of the treaty: Instead of being paid for the canal by Panama, the U.S. is, in Mr. ROSENTHAL. Mr. Speaker, the Percy was improperly using an airplane be­ Federal Banking Agency Audit Act longing to Bell & Howell, a firm the Illinois effect, paying Panama to take the canal, so the voters in Panama have more incen­ (H.R. 2176) provides the GAO with au­ Republican once headed. thority to audit the Comptroller of the It turns out the firm doesn't own an air­ tive to auprove the treaties than the voters plane, Powell follows up with a public apol­ in the U.S. would have. Currency, the Federal Deposit Insur­ ogy and Percy accepts that apology with a The canal is no longer militarily imuor­ ance Corporation, and the nonmonetary crass statement of his own. tant, according to the Joint Chiefs of Staff, policy activities of the Federal Reserve To many people, the Powell-Percy incident who can hardly be classified as "giveaway" System. House Minority Leader JOHN was reminiscent of Watergate, dirty tricks artists when it comes to strategic installa­ tionfl. But the treaties call for the U.S. and RHODES recently asked me to describe and the Nixon thugs. the activities of the Federal Reserve Looking at the broader perspective, the Panama to guarantee the neutrality of the canal Does that mean we must send troops which would be subject to review by string of events during the last several weeks the GAO under this legislation. Because is the first real crisis for the Carter adminis­ into Panama and save Gen. Torrijos in a tration. So far, there has been bungling at civil war, in order to save the canal? That's my office has received a large number how we got into Vietnam. of similar inquiries, I would like to make every turn. As these remarks attest, our feelings Americans are beginning to wonder. They're mv response to Minorit:v Leader RHonEs about the canal treaties are somewhat am­ available to other Members of the beginning to ask tougher questions. In some bivalent, but since both California senators cases, they're becoming disgusted. Some are are already publicly committed to approv­ House: SEPTEMBER 20, 1977. saying Carter is more style than substance. ing the treaties-one of those rare items on Some say Carter has allowed his own prej­ which they agree-our opinion seems almost Hon. JOHN J. RHODES, udices to stand in the way of good govern­ irrelevant in terms of influencing the out­ Minority Leader, House of Representatives, ment. No matter how you slice it, public come of the Senate vote, and so do the opin­ Ca'TJitol Fuildinq, Washinoton. D.C. support is slipping badly. ions o! Californians whose opposition to the DEAR MR. RHODES: During 'debate on the President Carter has got to do a better treaties is undiluted by ambivalence. Federal Banking Agency Audit Act (H.R. job. Otherwise, his credibility to lead this 2176) on September 4, 1977, you asked me country is compromised. to provide a general statement about what Federal Reserve operations the GAO would UNITED STATES SHOULD BOYCOTT be authorized to audit under this legisla­ THE ARABS TOO tion. I am pleased to provide the informa­ PANAMA: WHY THE RUSH? tion contained in this letter and trust it will prove useful in your consideration o! HON. PETER H. KOSTMAYER the Federal Banking Agency Audit Act. HON. ROBERT J. LAGOMARSINO OF PENNSYLVANIA At the outset I Wll."'t to ::ic-sure vou that OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES my intent and the intent o! the Committee IN THE HOUSE OF REPRESENTATIVES on Government Operations is that this leg­ Wednesday, September 21, 1977 islatio., shall in no w?o.v di""'linic:h or imnair Wednesday, September 21, 1977 Mr. KOSTMAYER. Mr. Speaker, I en­ the independent conduct o! monetary policy Mr. LAGOMARSINO. Mr. Speaker, I ter into the RECORD today the following by the Federal Reserve. It is for this reason 30262 EXTENSIONS OF REMARKS September 21, 1977

that monetary policymaking entitles such as Principal operations of Federal Reserve Their answers gave further proof of the Federal Open Market Committee and Banks, i ncluding total expenses, average the flagrant violation or NErA by that the Federal Advisory Council of the Fed­ number of eniployees, an:i ratio of total department. Some 10 days after that eral Reserve are not included in this expense for each operation to total hearing the Department of State at­ legislation. expenses-197 6 The monetary policy exclusion in H.R. tempted to cover itself and issued a draft I Expenses and number of employees in environmental impact statement of sorts. 21 76 now reads: tl::ousanjs; ratios in percent] "An audit made under paragraph (1) (a) I was glad to see my colleague from Cali­ shall not include transactions conducted Operation fornia, Mr. LEGGETT, speak on that draft Check clearing operations: 1 on behalf o! foreign central banks and for­ Total expense ______$135,209 EIS on September 15, and point out that eign governments, transactions made under Ratio to total expense5______20 . 5 the department "flunks" NEPA. the direction o! the Federal Open Market Mr. Speaker, I urge every Member of Committee including transactions o! the Average number of employees___ 6. 3 Currency function: both Houses of Congress to familiarize Federal Reserve System Open Market Ac­ Total expense ______$114,036 count, or monetary policy deliberations and himself or herself with this utter con­ decisions or the economic effects o! such Ratio to total expenses______17. 3 tempt for the law of the land by the decisions." Average number of employees___ 2. 3 State Department, and to take the posi­ Fi£cal agency operations: tion that nothing further should be done This language strictly prohibits the GAO Total expense ______$4~ 158 regarding the proposed treaties until this from investigating or commenting in any Ratio to total expenses______7. 3 whole matter is given a full airing. way on the conduct o! monetary policy. It Average number of employees___ 2. 3 is my belief there is no way the GAO can Bank supervision: The following is the text of the above­ influence monetary policy under this legis­ Total expense ______$23, 322 mentioned August 17 hearings insofar as lation, and no basis !or the concern that Ratio to total expenses______3. 5 my questions and the State Depart­ the independence of the Federal Reserve ment's answers are concerned. will be impaired. Average number of employees___ 1. 1 Other operations: " Following that is my August 9 press From the standpoint of national economic Total expense ______$29,919 release, which includes the full texts of well-being, monetary policy is clearly the Ratio to total expenses______4. 6 most important of all Federal Reserve ac­ the correspondence I had with the De­ Average number of employees___ 1. 4 partment of State: tivities. However, it accounts for less than 5 General administration and support: percent of Federal Reserve expenditures. As Total expense ______$307,806 Mr. SNYDER. Mr. Ambassador, please spell shown in the table attached to this letter Ratio to total expenses______46 . 8 out for us precisely how you used the State which was derived from Table 10 on pag~ Department finding as to the environmental Average number of employees___ 11. 1 aspect and impact of the new treaty proposals 466 of the "Annual Report of the Board of Accounting ------$23. 298 Governors of the Federal Reserve System. as a guide to your decisions as you proceeded Auditing ------$8, 050 throughout the negotiations with Panama? 1976," the district banks of the Federal Bank administration______$38. 519 Reserve System spent $658 million on all Data processing 3______$39, 814 Ambassador L1Now1Tz. Mr. Wyrough may their operations in 1976. District bank ex­ be able to answer that. Occupancy ------$64,292 penses relating to monetary policy delibera­ Mr. WYROUGH. We have a review of the tions, decisions, and implementation are in­ Personnel ------$27,219 environmental impact of the proposed treaty cluded in the "Other Operations" expense Protection ------$24.501 underway. It is not yet completed. I think Other ------$82. 113 we can say that among the articles we expect category. Even under the assumption that Total expenses 4 ______$658.450 the entire $29.9 million spent for "Other to have in the treaty will be one concerning Less reimb11rsements______$51. 502 the environment which both countries move Operations" relates to monetary policy and Net expenses ______$606,948 therefore is not subject to GAO review, there to protect. remains $628 million or 95 percent of total 1 Includes automated clearing house and Mr. SNYDER. Sir, if the environmental study expenses unrelated to monetary policy and noncash collections. is underway, how did it serve as guidelines subject to GAO audit. ~ Includes automated clearinghouse and for the treaty as required by the National statistics, foreign operations, and lending Environmental Policy Act of 1969? A review of the expenditures categories Mr. WYROUGH . I can only say to you that presented in the attached table indicate the and credit. ~ Does not include that part of data proc­ we have a review of the environmental ques­ GAO would be responsible for reviewing the t ions underway. That review is not yet com­ effect iveness and propriety of Federal Reserve essing distributed to other areas. 4 Dees not include $41.8 million assessment pleted. check clearing, currency handling, fiscal Mr. SNYDER. So you didn't follow your own agency, bank supervision, and general ad­ for expenditnres of the Board of Governors of the Federal Reserve System. State Department guidelines or the Environ­ ministrative activities. mental Policy Act of 1969? Is that inappro­ If the monetary policy exclusion were priate at this time? broadened to prohibit GAO review of Fed­ Mr. WYROUGH. I have no further comment eral Reserve check clearing and other pay­ STATE DEPARTMENT NEGOTIATED other than what I have made. ments mechanism operations, as some Mem­ PANAMA CANAL TREATIES IN bers would like, the GAO would be barred PRESS RELEASE FLAGRANT VIOLATION OF NA­ from auditing important activities which Congre~s man Gene Snyder today made accounted for expenditures amounting to TIONAL ENVIRONMENTAL POLICY public an exchange of correspondence which $297.4 million in 1976 and which have noth­ ACT he declared, "demonstrates that the Depart­ ing to do with monetary policy. For example. ment of State has utterly failed to comply the GAO would be barred from evaluating with the National Environmental Polley Act the economy and efficiency of Federal Reserve HON. GENE SNYDER ( 42 USC 4321). the directives o! the White payments mechanism operations. Moreover, OF KENTUCKY House Council on Environmental Quality, it would be prevented from assisting Con­ IN THE HOUSE OF REPRESENTATIVES and, in fact, with the Department's own gress in making the very tough decisions 'Procedures for Compliance with Federal that must be made in the coming years about Wednesday, September 21, 1977 Environmental Statutes' in the decision­ private versus public ownership of elec­ Mr. SNYDER. Mr. Speaker. during making process of negotiating a new treaty tronic funds transfer systems. the August recess I issued a press release with Panama by which it proposes to divest the U.S. taxuayers of their $7 billion invest­ In general terms. the Federal Banking concerning an exchange of correspond­ Agency Audit Act would allow the GAO to ment in territory and installations in the audit all the operations o! the Federal bank ence I had with the State De;Jartment Canal Zone and Panama Canal." regulatory agencies with the exception of the which proved that that agency. in its The Kentucky Republican wrote the monetary policy activities of the Federal negotiations with Panama for a new State Department on June 9 requesting any Reserve. This general audit authority is con­ canal treaty, utterly failed to take into environmental impact statement on the sistent with the authority granted the GAO consideration the requirements of the treaty: data concerning its investigation to in its audits of the Federal Home l ,oan Bank National Environmental Policy Act and determine i! tbe treaty would significantly Board and the National Credit Union Ad­ its own guidelines on conforming with affect the human environment; requests o! other agencies or non-governmental groups ministration and is needed to facilitate con­ the law. gressional oversight o! these important for information helpful in evaluating the agencies. Then. on August 17. in oopn h 0 arings environmental impact of the proposed action Sincerelv, of the Committee on Merchant Marine and anv answers received; and details o! all BENJAMIN 8. ROSENTHAL, and Fisheries. I put several questions on other a~tions taken in the matter. Chairman. this matter to the State Department Snvder said. "I am auite certain that until Attachment. treaty negotiators. my letter stirred up the Department, no one September 21, 1977 EXTENSIONS OF REMARKS 30263 there had made any serious effort even to get will still be made, and, as required by the ment issued by the Department in connec­ started in complying with the law although act, the results of that investigation will be tion with the proposed treaty with Panama. they were going like gangbusters to get Am­ an integral part of the decisionmaking proc­ 2. A copy of the Department memorandum bassador Sol Linowitz's signature on a new ess.'". indicating the extent of the investigation treaty before his temporary six-month ap­ "I wonder if the State Department has ,conducted to determine if the proposed pointment as co-negotiator runs out this even contacted environmentalist groups on treaty will be a "major Federal action sig­ Wednesday. Before my June 9 letter, I had the Isthmus of Panama. That there will be nificantly affecting the quality of the human ascertained that neither the Council on En­ environmental fallout from this treaty is environment". vironmental Quality nor any other govern­ certain. Panama says it wants to expand 3. Copies of all requests made by the De­ ment agency had received any State De­ Panama City into the present Canal Zone. partment to other government agencies or partment environmental statement on the Does that mean industry, light, medium or non-governmental groups for information treaty, or requests for comment or in­ heavy, will expand there? How about instal­ helpful in supplementing the Department's formation on the matter. lations to fuel the new industries? Will in­ own work in evaluating the environmental "I didn't even get a reply until July 26th, d us try bring erosion to the banks of the impact of the proposed action, and copies after my Panama Canal Subcommittee staff Canal? of any response received. prodded State Department personnel work­ "The Zone presently, because of its clean­ 4. Details of all other actions taken by the ing on the negotiations. That answer, dated liness, is known to be a barrier to the spread Department in regard to this matter. July 22nd, states, 'The Department has not northward of hoof and mouth disease, always I would appreciate an immediate response as yet made a determination as to whether a worry to cattle ranchers in Mexico and the to this request. the action in question will significantly af­ U.S. Will this remain true under Panamanian Sincerely, fect the quality o! the human environment jurisdiction? GENE SNYDER, within the meaning o! the National Environ­ "What about considerations for a new sea Ranking Minority Member, mental Policy Act, and consequently we level canal in this treaty? On April 14, 1975, Panama Canal Subcommittee. have not yet prepared an Environmental Im­ Friends of the Earth and nine other national pact Statement.' and international environmentalist groups "This clearly shows that the Department, vigorously protested any consideration of since it has not yet assessed the treaty's such a canal in treaty talks, citing 'grave IS THE ELECTORAL SYSTEM environmental implications, has utterly potential dangers that could result from the REALLY OBSOLETE? project as a consequence of the intermixture !ailed to consider those implications in the decision-making process. of now-szparate biological systems in the tropical Caribbean Sea and Pacific Ocean. "Both the White House and the State De­ HON. LARRY McDONALD There is no intermixing at present because OF Gl!:ORGIA partment !or months have furnished the marine organisms cannot survive in the media with official and leaked stories about existing lock-type Panama Canal, which con­ IN THE HOUSE OF REPRESENTATIVES the rapidity with which the negotiations tains only freshwater.'" Wednesday, September 21, 1977 are coming to a successful close. But it "What will happen to the Madden Forest seems th-ey overlooked completely, until I Preserve and the abundant mammal and Mr. McDONALD. Mr. Speaker, every called attention to it, the requirements to plant life of the Zone? so often in the past few years, serious take those implications into consideration "What will be the fate of the myriad species drives have been mounted to abolish our in the treaty negotiations process itself. of birds in the Zone, in the vicinity of the electoral system. The main argument "The September 24, 1976, memorandum of Gamboa Pipeline Road and elsewhere? appears to be that it is archaic and that the President's Council on Environmental "The White House and the State Depart­ only by a popular vote can we determine Quality quotes House Report 92-316 o! the ment seem to have made treaty decisions House Committe-e on Merchant Marine and with little or no heed to environmental ques­ who really should be President. Very sel­ Fisheries: tions the law requires our policymakers and dom is the constitutional history and "'The hlstorv o! the act (NEPA) ma'kes it negotiators to be cognizant of." justification presented for keeping the quite clear that the global effects o! environ­ electoral system. It is really one of the m1mtal decisions are inevitablv a oart of the unique features of the checks and bal­ decision-making process and ·must be con­ DEPARTMENT OF STATE, sidered in that con text." Washington, D .C ., July 22, 1977. ances our forefathers worked into the "The CEQ memo concludes: Hon. GENE SNYDER, Constitution to prevent one section or "'According!?. agenc:v officials resnonsible House of Representatives. several States from dominating the rest !or analyzing the potential environmental DEAR MR. SNYDER: This is in response to of the United States just by superior effects of proposed actions should fully as­ your letter of June 9 to the Office of Envi­ numbers of residents. Human Events sess the potential impacts 011tside the United ronmental Affairs requesting certain infor­ mation with respect to any environm:>ntal printed an excellent commentary on this States as well as those within it; i! any of assessment being prepared in connection issue in its April 16, 1977 issue. The these potential impacts are likely to be author was Dr. John Grady, a man who significant, an impact statement should be with the proposed treaty between the United prepared." States and the Republic of Panama. stands foursquare for the Constitution The Department has not as yet made a and whom I consider to be that kind of "The State Department's own guidelines determination as to whether the action in on En~ironmental Impact Statements pub­ fearless American we need more of. The Lshed m the Federal Register September 19, qurntion will significantly affect the quality article follows: 1972,states: of the human environment within the meaning of the National Environmental Is THE ELECTORAL SYSTEM REALLY OBSOLETE? " 'The process of deciding on the need for (By John Grady) an environmental impact statement on any Policy Act, and consequently we have not yet prepared an Environmental Impact State­ ( NOTE .-John Grady, M.D ., is a family Department action will itself require an ment. We are, however, preparing an assess­ an8:lysis . of the effects that the proposed physician, former U.S. Navy jet pilot and action will have on the human environment. ment of the environmental implications of a three-term mayor of Belle Glade, Fla. He has treaty and when it b 3comes available, we been widely recognized for his efforts on be­ The inquiry into environmental effects is would be happy to provide you with a copy. mandated, independent o! the requirement half of constitutional government and Amer­ to file environmental impact statements, by We appreciate your interest and concern icanist principles. In 1976 Dr. Grady received section 102(2) (B ) of the act, which requires in this matter. more than one million votes in Florida as the procedures to insure that presently un­ Sincerely, Republican candidate for the U.S. Senate.) quantified environmental amenities and DOUGLAS J. BENNET, Jr., Every four years, following the presidential values may be given appropriate considera­ Assistant Secretary for Congressional election, there is a cry to "reform" our elec­ tion in decision-making along with eco­ Relations. tion process by replacing the electoral system. nomic, technical and other considerations. This enlightened advice is dispensed na­ CEQ Guideline No. 1 underscores this by COMMITTEE ON MERCHANT MARINE tionwide through the editorial writers o! the recognizing that the purpose of section 102 AND FISHERIES, major, liberal, daily newspapers, spiced here (2) (C) is to build into the agency decision­ Washington, D.C., June ,Q., 1977. and there with a supporting opinion by some making process an appropriate and careful OFFICE OF ENVIRONMENTAL AFFAl"il.S, erudite "constitutional expert" from the consideration of the environmental aspects Department of State, department of political science at one of of proposed actions, and to assist agencies in Washington, D .C . our tax-supported, liberal centers of higher implementing not only the letter, but the GENTLEMEN: In accordance with the De­ learning. spirt, of the act." partment of State's Public Notice 364 pub­ The principal argument for constitutional "'Even where it is cle:u from the start that lished in the Federal Register, September 19 , change is that tbe popular vote, nationwide, a proposed action will not require an en­ 1972. "Environmental Impact Statements," should be the sole criteria for the election vironmental impact statement, the con­ this is to request of the President and Vice President. That sideration of possible environmental effects 1. Any draft environmental impact state- argument against the electoral system is 30264 EXTENSIONS OF REMARKS September 21, 1977 pertinent and valid-if we have a national which have been equally, proportionately, 1824, Andrew Jackson received 42.2 <;;; of the federal government, rather than a govern­ fairly and constitutionally determined. And vote, John Quincy Adams 31.9 <;;.. , Henry Clay ment of the United States; if we have now that electoral vote is cast for the candidate 13 % and William Crawford 12.9 :;; . None re­ become a demccracy, rather than a Republic; who by popular vote carried that state. ceived a majority of the electoral vote, and and if a national majority should always The electoral system demands in effect that the House of Representatives chose Adams as rule, regardless of reason, justice, law or con­ the presidential and vice presidential candi­ President. stitutional assurances of liberty and indi­ dates heed the people of every state, inde­ The 14 others elected without majority vidual rights. pendently and regardless of size, because of popular vote were: James Polk (1 844 ) 49.6 r;., If, however, we are a Union, one nation the desirability of carrying each respective Zachary Taylor ( 1848) 47.3 % , James Bu­ of many states, a true Republic and not a state and receiving its electoral vote. This chanan (1 856) 45.6 % , Abraham Lincoln democracy (which our founding fathers his­ political reality also aids in maintaining (1 860) 39.8':c , Rutherford Hayes (1 876) torically recognized as a self-destroying form recognition of each state and a responsi­ 47.9 % , James Garfield (1 880) 48.3 % , Grover of government), then we should look again bility to it by this nation's highest office Cleveland ( 1884) 48.5 ';c , Benjamin Harrison at the electoral system-what it means and holders. Most importantly, the electoral sys­ (1838) 47.8 '1-, Grover Cleveland (1892) what it assures. tem maintains the concept of a President of 46.0 %, Woodrow Wilson (1912) 41.8 ';,; , Wood­ The Constitution, Article II, Section 1, the United States rather than a National or row Wilson (1916) 49.3 % , Harry Truman provides that "Eacl1 state shall appoint, in Federal President. (1948) 49.5 %, John Kennedy (1960) 49.7 % , such manner as the legislature thereof may Americans should note that in newspaper and Richard Nixon (1968) 43.4 %. direct, a number of electors, equal to the articles and television commentaries which Several others barely made it over the 50 "",. whole number of senators and representatives question or condemn the electoral system, mark: Martin Van Buren (1 836) 50.9 % , to which the state may be entitled in the the liberal critic uses subtle ridicule to imply Franklin Pierce (1 852) 50.8 %, and Jimmy Congress . . . " ( and shall meet in their re­ that the system (or the Constitution) is Carter ( 1976) 50.1 7,- . spective states and cast that state's vote for archaic, out of date, and somehow unfair. In every case since tht> first Adams-Jackson President and Vice President). These media moguls never explain what contest, the electoral vote was important However, to evaluate the electoral system the electoral system is. They rarely take the because it clearly identified the winning can­ we must understand the Constitution by time to inform-they're too busy molding didate and prevented the necessity of a run­ which it was established. So let us briefly public opinion! This is supported by a recent off or the selection of the President by the lay a simple foundation of fact. study which showed that only a small per­ House of Representatives. The framers of the Constitution were wise centage of citizens, even regular voters, un­ In 1912 Wilson received 41.8 '!c of the vote men, and that great document is filled with derstood how the electoral vote is deter­ against 27.4 % for Theodore Roosevelt and wisdom. It required and assured that the mined. 23.1 r;. for William Howard Taft. However, Congress would be so composed that it would And herein lies the reason for many of our Wilson carried 435 electoral votes to 88 for provide total representation-for the people nation's problems today-a willingness to Roosevelt and eight for Taft. and for the states. change, to modify our government, to for­ In 1948 Truman carried only 49.5 '!c of the The United States Senate is composed of sake tried and true policies and traditions, popular vote but 303 electoral votes. Thomas two senators from each state, thus giving to abandon successful economic systems and E. Dewey received 45.1 % and 189 electoral equal representation for all states. Remem­ military concepts-without understanding vote:o. Strom Thurmond (States Rights Dem­ ber, the states formed and created the federal our proven system and the errors and trage­ ocrat) received 2.4 r~ and 39 electoral votes, government, not the reverse. dies of history, or even knowing what the and Henry Wallace received 2.38 % but no The Constitution, Article I, Section 3, orig­ change will bring us. electoral votes. inally provided for senators to be elected by But getting back to the matter of who In 1960 the vote was extremely close. John the legislatures of each state. Thus while the goes to the White House, is it possible to Kennedy polled 34,221,349 votes or 49.71 % to senators helped comprise the federal govern­ elect a President by electoral vote even Richard Nixon's 34,108,647 votes or 49.55 % . ment, they really represented their respective though he gets less than a majority of the A slate of "unpled ged" (Democratic) electors states, not only the people but the people's total national vote? Yes, it's not only pos­ carried Mississippi, and cast that state's eight state government. Moreover, their smaller sible, but it has happened many times be­ electoral votes for Sen. Harry Byrd . They were number and their longer term of office (six fore, even though many of our political lead­ joined by six unpledged (Democratic) elec­ years) was designed to establish stability and ers don't seem to realize it. tors from Alabama and one (Republican) continuity. Recent news reports, such as a UPI article elector from Oklahoma who also voted for The 17th Amendment, adopted in 1913, of Jan. 28, 1977, have carried comments by Byrd-a total of 15. Nevertheless, Kennedy's changed the method of e!ection of senators both Republican and Democratic members electoral vote margin of 303 to Nixon's 219 to direct election by the citizens rather than of the U.S. Senate warning of the potential wa,; substantial. by those citizens' representatives in the state disaster of the electoral system. Sen. Birch Another aspect of the election process legislature. Nevertheless, in the rationale of Bayh (D .-Ind.). chief sponsor of a constitu­ which has been distorted is the effect of in­ our founding fathers, the Senate, composed tional amendment to replace the electoral dependent or third-party candidates in pres­ of an equal number of senators (two) from system with the popular vote, was quoted as idential elections. Contrary to popular belief, each state, was to represent the states. saying. "Only by sheer luck last November minority party and independent candidates By contrast, the House of Representatives did we survive another round of electoral have been the rule throughout most of was designed to represent the people, directly roulette." America's political history-not the excep­ and proportionately. The House is composed Sen. Hubert Humphrey (D.-Minn.). re­ tion. of 435 congressmen elected every two years ferring to his own 1968 presidential race. As previously noted, 15 of the last 39 by the citizens of their respective states. said that had a President been elected who Presidents were elected with less than a ma­ That shorter term of office means closer con­ was not the popular vote winner, "The loss jority of the popular vote. Consider the con­ tact and more prompt response of the con­ of public confidence would have been stag­ fusion and the cost of a presidential run-off gressman to the citizen. What is perhaps even gering." Apparently Sen. Humphrey does not nationwide if the popular majority vote con­ more important, when the citizens want to wish to admit that the loss of confidence cept were instituted. Moreover, what of the replace their representative, they can do it in our government. and especially the Con­ effect of newly occurring national and inter­ quickly. This permits the people to maintain gress, is at an all-time low. and it isn't be­ national events in the intervening time? continuing control over the federal govern­ cause of the electoral system, but rather The following example demonstrates the ment by control of Congress. the failure of congressmen to uphold their stabilizing effect of the electoral system in The total number of representatives in the oath of office and protect and defend the such a multi-candidate election: In 1968 United States Congress (435) always remains Constitution of the United States. Nixon received 31,785,148 votes or 43.42 % ; constant, but the number allocated to each Senate Minority Leader Howard Baker CR. ­ Humphrey 31,274,503 votes or 42.72 '~ ; and state is directly determined by the popula­ Tenn.). appearing before Sen. Bayh's sub­ George Wallace, running on the American In­ tion of each state in relation to all other committee, also advocated a constitutional dependent party. polled 9,901.151 or 13 .53 r,. states of the Union. Again, this assures equal amendment. He stressed that if a President That year 16 other presidential candidates and proportional representation for both the were elected who did not ha·;e a popular tallied 242.568 votes. Yet Nixon received 301 states and the citizens thereof. majority. it would somehow destroy our sys­ electoral votes to Humohrey's 191 and Wal­ Moreover, the number of congressional tem of government. lace's 46. Again the electoral system saved seats is reapportioned among the states every One would exoect unfounded statements much confusion and turmoil! 10 years, based on their current population, from such Senate radicals as Bayh and Hum­ Finally, to be totally objective, let us ex­ to be sure that equal representation con­ phrey. But Sen. Baker and other more stable amine a most remote possibility. If there tinues. congressmen were ap:-arently se~king favor were only two major party candidates, could Why have we reviewed our Constitution with the liberal media rather than expressing it be possible for the candidate with the and the makeup of Congress in this essay any historical accuracy. higher popular vote to lose the election? Yes. on the electoral system and the method of Since the popular vote was first recorded it could happen, and it mi"':ht even be the electing our Presidents? Simple, the electoral (in the election of 1824). 15 of 39 elections best protection against mobocracy-the de­ vote for each state equals the combined num­ have given us Presidents who were elected mands of mob rule which destroyed the Greek ber of its senators and its representatives, with less than 50 7,- of the popular vote: In and Roman Republics when they permitted September 21, 1977 EXTENSIONS OF REMARKS 30265 themselves, as we are permitting ourselves and should be effected in every state. Or, public office has generated as much in­ today, to move from a republic to a democ­ perhaps, the United States Congress could so terest among the citizens of this country racy. legislate (wit:iout a constitutional amend­ as the transfer of the Panama Canal and Let us give one clear hypothetical example: ment) expressing the "sense of the Congress" the Canal Zone to the Republic of Pan­ Suppose that the incumbent, President as to this particular point. Blue, is running for re-election against the We could even go so far as to eliminate ama. While specific figures vary, every challenger, Governor Pink. And let us assume the electors who cast their state's electoral poll that I have seen indicates dis­ that President Blue is a fiscal conservative vote and make the recording of each state's approval by American citizens of this and constitut ionalist . and he knows t hat it electoral vote automatic. In this day of in· transfer. should be unlawful, and certainly is im­ stant communication, the electors them­ The American Legion held its 59th moral, to confiscate by government force the selves are not really necessary. convention in Denver, Colo., August 23- money honestly earned by responsible cit i­ Finally, as a practical matter, if the pres­ 25. That group passed a resolution in zens, and give that money to t hose who are sures in Congress are sufficiently strong that opposition to the treaties of transfer and irresponsible. wasteful. dishonest and unwise. alteration of the present electoral system is During the election year, President Blue inevitable, we should strive to influence and I believe it is important that the Mem­ would not help a liberal Congress take bil­ limit the changes to those which do the bers of this body be aware of the resolu­ lions of dollars of earnings from people in 49 least violence to the system. tion which passed setting forth the rea­ states and give it to New York City, which This could be achieved by the proposed sons for this opposition. was in dire financial difficulty. When the lib­ "district plan" whereby each candidate re­ Additionally, the Honorable Meldrim eral Congress passed the bill anyway, Presi­ ceives one electoral vote for each congres­ Thomson, Jr., Governor of the State of dent Blue courageously vetoed it. sional district he carries and two votes for New , made a statement at By way of explanation, let us suppose that each state he carries. This would ret ain the that same convention. I, the ref ore, insert New York City provided high municipal sala­ es, ential concept of the electoral system both the resolution and statement in the ries, lucrative city pensions, free college edu­ while quieting those who complain that a cation for New Yorkers and generous wel­ candidate can receive all of a state's electoral RECORD: fare handouts (some welfare recipients could vote by winning that state by only one 59TH NATIONAL CONVENTION OF THE AMERICAN collect the equivalent of a $19,000 per year ( popular) vote. LEGION-RESOLUTION No. 445 income). But any such changes would require a Committee: Foreign Relations. In addition to its tax-and-spend philoso­ constitutional amendment, and any tamper­ Subject: Panama Canal. phy and poor fiscal management, New York ing with the Constitution in this regard Whereas, the United States is the rightful got into more trouble by lying about its could result in the replacement of the entire and legal owner of the U.S. Canal Zone and debts and assets so that the city could keep electoral system by a popular vote method. the Panama Canal, having acquired this U.S. selling municipal bonds while it borrowed A prolonged, intense, public-opinion-molding property through court tested treaties and itself into imminent bankruptcy. effort by the liberal media could well bring agreements and mutually agreed upon pay­ Now comes the November election-a close that about. ments to Colombia, Panama and the indi­ one in which President Blue carries 49 states There is great danger in making constitu­ vidual land and property owner; and by relatively small margins of 10,000 to 100,- tional amendments too common. I might Whereas, the United States Supreme Court 000 votes, resulting in a 1.5-million-vote lead add, there is even a greater danger of o. Con­ has ruled that the United States is legally in those 49 states. (This is not at all an stitutional Convention, which might result entitled to sovereignty and ownership of the impossibility, as already demonstrated by in the destruction of that great document­ U.S. Canal Zone for the purpose of building, the close vote in many past elections.) the greatest instrument of government in all operating, protecting and maintaining a But in New York, the voters who are seeth­ history, and the greatest single factor in the canal across the Isthmus; and ing because of the denial of their demands preservation of this nation and the freedom Whereas, the United States has lived up for free m cmey, bread and circuses gives a of her people. to its obligation under the Treaty to the two-million-vote margin for Governor Pink, We have shown in this brief analysis that letter of the law; and who promises them a raid on the federal the electoral system is not only constitu­ Whereas, the political, economic and the treasury. Result: Governor Pink receives a tional, it is reasonable and fair. It is an­ military factors offer conclusive evidence half-million-vote margin nationwide. other check anci balance which our practical that it ls in the vital national interest of the In this case, the electoral system would and intelligent founding fathers provided for United States to retain sovereignty and give President Blue a wide margin of victory our protection. We should keep it! ownership of the U.S. Canal Zone and Canal: for carrying 49 of 50 states; but the national The attack on the electoral system is sim­ and popular vote method would elect Governor ply a small part of the current, general as­ Whereas, over three-fourths of our Ameri­ Pink-denying 49 states and the people sault on the Constitution, American tradi­ can citizens consistently voice their opposi­ therein their choice. tion, states' rights, and the Republic. tion to any kind of "giveaway" or dilution of Moreover, this would destroy forever the I certainly agree with Abraham Lincoln. U.S. sovereignty over this territory; and concept of a union of states because one who stands with Washington as one of our Whereas, the United States as leader of the large state, or even one big city, or pehaps two greatest Presidents, and who incidentally free world has a moral obligation to remain even one racial or ethnic group voting on a was elected with only 39.8 <:;- of the vote but fair, firm and strong when faced with politi­ single issue for personal gain, could force with 180 electoral votes to a combined total ca1 blackmail; and their will upcn the nation as a whole. of 123 for his three opponents. Whereas, surrender of the U.S. Canal Zone Back to those "naughty" electors again. Lincoln said, "I am a firm believer in the would be tantamount to a major military Much is made of the possibility or "fact" people. If given the truth, they can be de­ defeat with enormous consequences for evil; that they do the "electing" rather than the pended upon to meet any national crisis." now, therefore, be it people. In this crucial time when our cont inued Resolved, by The American Legion in Na­ Admittedly, in 200 years of American his­ freedom and prosperity are in jeopardy, and tional Convention assembled in Denver, Colo­ tory, on rare occasions an elector has cast our republican form of government is on rado, August 23, 24, 25, 1977, that we reiterate a ballot for someone other than the candi­ trial. the people of the United States must be and reaffirm our continuing and uncompro­ date chosen by the vote of his or her respec­ told the truth. In addition, all of us, young mising policy in opposition to any new tive state. and old, must be given a better foundation Treaties or Executive Agreements with Unfortunately, the best of individuals in the principles which made America the Panama, relating to the U.S. owned Panama turns maverick occasionally, and "goofballs" greatest of all nations. Canal and its protective frame of the U.S. Canal Zone as expressed and set out,,An are sometimes placed in a position of public As a beginning, we should not only under­ trust. However, the record of sanity and re­ stand the electoral syst em and our own form separate resolutions adopted consecutively sponsibility among electors is nearly perfect, of government; we would do well to compre­ at each annual American Legion National and far better than that of other elected offi­ hend why certain elements of the media and Convention since the Miami Convention in cials and such paragons of wisdom and virtue other "political pundits" are so intense in 1960; and, be it further as "progressive" federal judges, university their attack on it. Resolved, that we strongly urge all elected professors, and newspaper analysts who ques­ members in the U.S. Congress to oppose any tion the electoral system. new treaty with the government of Panama Furthermore, as I read the Constitution, I which: (a) in any way dilutes full U.S. sover­ see nothing that says electors shall vote for THE PANAMA CANAL TREATY eignity, ownership and control; (b) cedes their choice rather than cast ballots on be­ U.S. territory or property; (c) surrenders any half of the state's choice, but I readily ad­ HON. DAN DANIEL jurisdiction and control which would threat­ mit that the wording in the Constitution is en the economic and security interests of the not sufficiently clear on that point. OF VIRGINIA United States; and, be it further As a result, some states have easily and IN THE HOUSE OF REPRESENTATIVES Resolved, that The American Legion re­ wisely taken proper action to clarify that Wednesday, September 21, 1977 jects the actions of the Executive agencies point by requiring, by state law, that elec­ of the federal government in attempting to tors cast their ballots according to the vote Mr. DAN DANIEL. Mr. Speaker, no by-pass the Constitution of the United of their state. That simple solution could issue in all the years I have been in States, and we fully support Article IV, Sec- 30266 EXTENSIONS OF REMARKS September 21, 1977 tion 3, Clause 2, of the Constitution which "Here, in this place destiny changes incessantly proded by Panama government provides that only the Congress has the au­ horses." instigated riots, I believe that the true rea­ thority to dispose of U.S. Territory. If Ball's analogy to destiny changing horses son is that our government is once again sur­ proves correct, and the proposed Treaty be­ rendering to the relentless pressure of world DAWN OR DUSK comes a reality, then I suggest that America communism. (By Gov. Meldrim Thomson, Jr.•) will have dismounted from a Seattle Slew By the 1903 Hay-Bunau Varma Treaty the and climbed atop a Panama burro! Canal and its Zone were given to America Commander Rodgers, Honorable Delegates EMOTIONAL ISSUE "in perpetuity". to the 59th Annual convention of the Amer­ We presided as mid-wife at the birth of ican Legion: We are told by our give-away boys in the Panama. Part of the consideration for this Twenty-nine hundred miles southeast of State Department that the Canal issue has service was the Canal Treaty. Now the grown us the sun rose this morning, as it does every become needlessly entwined with emotional­ child would renege on its birth service but day, on the American Canal in Panama be­ ism. shows no inclination to return as part of fore it was seen on the east coast of Florida. Treaty negotiator Sol Linowitz was recent­ Colombia. Did its rising portend the dawn of a new ly quoted as saying that the opposition to Article III of the 1903 Treaty declares that era for this land or ours? the treaty is one of emotionalism; it is one Or will the setting of the sun beyond the "the Republic of Panama grants to the of great ignorance on the part of the Ameri­ United States all the rights, power, and au­ Rockies a few hours hence herald the fading can public. dusk of an America once great and strong. He sounds much like the group of Ameri­ thority within the zone mentioned ... There is no group of citizens to whom I can businessmen with whom I talked in which the United States would possess and would rather entrust the answers to those Panama City early last June. exercise if it were the sovereign of the ter­ two questions than to you, the working About the many government instigated ritory within which said lands and waters guardians of American liberty! instances of Panamanian youth tearing down are located, to the entire exclusion of the Behind us lies the rich history of two suc­ and desecrating Old Glory these money-hun­ exercise by the Republic of Panama of any cessful centuries of growth from a fledgling gry merchants said, "They are just kids blow­ such sovereign rights, power or authority." costal nation of 13 states to a great world ing off steam !" That language clearly cedes sovereignty power. Back in 1964 when the Panamanian public over the Canal Zone to the United States As we cross history's threshold into our descra tions of the American Flag began our forever. third century, what kind of a future do we public officials should have issued an order In 1907 our United States Supreme Court and our posterity face? similar to the one given by John Dix, the confirmed our title to the Canal Zone in the Will we stand brave and firm for freedom New Hampshire born custom official in New case of Wilson v. Shaw. in the real world of spre:tding communism or Orleans at the outbreak of our Civil War. "It is hypocritical", the court said, "to crawl into historical obscurity before the Dix said: "If any one attempts to haul contend that the title of the United States hysterical howling of world opinion? down the American Flag, shoot him on the is imperfect, and that the territory described The answer to these vital questions wlll spot." (the Canal Zone) does not belong to this be found in our response to the demand of The Canal has been a proud part of our nation because of the omission of some of the communist affiliated dictator, General heritage for three-quarters of a century. the technical tenns used in ordinary con­ Omar Torrijos, that we give to the Republic It is important to our economy; vital to vey,mces of real estate". of Panama the Canal, its locks and appur­ our national security! It was not until 1974 that United States tenances-plus a yet unspecified indemnity It bas been as much a part of the national officials, led by Kissinger in his eight point for 62 years of use of that which by treaty sovereignty as Florida, Alaska, and all of the outline for a treaty, agreed upon with for­ we have held "to the entire exclusion of central and western states acquired under the eign minister Juan Tack, suggested that the Panama" and "in perpetuity." Louisiana and Gadsden purchases. United States did not have sovereignty over Under the misguided leadership of a cra­ Recently Henry Kissinger, the architect of the Canal Zone. ven Department of State we have seen the American compromise, accommodation and Linowitz contends by the magic of legal sacrifices made and the victories won in surrender, described the proposed give-away sophistry that the United States in the 1936 World War II frittered away in the Treaties of the Canal as a response not only to wis­ Treaty relinquished the sovereignty created of Teheran, Yalta, Potsdam and Helsinki. dom of statesmanship but also of "patriot­ by the 1903 Treaty by the use of the words Since the war to end all wars we have ism". "territory of the United States under the witnessed the lights of liberty extinguised Imagine it! Patriotic to relinquish the jurisdiction of Panama". in 31 countries around the world. Canal! A careful reading of the entire treaty will We have fought two ghastly no-win wars Why that is like winning the Nobel Prize convince any reasonable mind that this lan­ with hands and feet tethered while leaving for Peace by the simple technique of sur­ guage was an inaccurate description of our more than a hundred thousand young Ameri­ rendering all in Vietnam. sovereignty and, more important, was never cans in the silent death of battle. Contrast the unAmerican words of former intended to change it. In recent years we have raised and sup­ Secretary of State Kissinger with that truly A FEW BASIC FACTS ported new communist nations. great American statesman Charles Evans For almost four centuries men schemed At the same time we have coerced and Hughes who in 1923, in speaking on America's and dreamed of building a canal to carry harassed old and loyal allies such as the Re­ right to the Canal, suggested that it was ships between the Atlantic and Pacific public of China, , Rhodesia and South unthinkable that any American President or Africa. Oceans rather than follow the 7,000 mile Secretary of State would ever surrender any route around Cape Horn. Now comes Omar Torrijos and his National part of the rights which the United States As long ago as 1524 Oharles V of Spain Guard strongarm goons and says to Ameri­ had acquired under the Treaty of 1903". ordered the first survey for a proposed canal cans, either give us back that which we Yes, Linowitz is right. route over the Isthmus of Panama. ceded to you forever or we shall take it from This brazen attempt to rip out a vital One of the first of many American presi­ you by guerilla warfare and with the sup­ organ of our body politic is as fraught with dents to become involved with the Canal port of Latin America and third world opin­ was Ulysses S. Grant who sent a naval expe­ ion. emotion to any true patriot as the defile­ ment of the American Flag. dition to survey the Isthmus at Darien in Thus, today the testing issue of America's Let us pray that the emotion that 1870. future has become the Canal. The French for two decades under Ferdi­ Will America continue her flight from prompted John Paul Jones defiantly to cry from his sinking ship, "I have not yet begun nand De Lesseps. the builder of the Suez greatness or will we, in the spirit of our Canal, tried to construct a sea level canal Founding Fathers, draw the line of reckon­ to fight;" or that grand sentiment that in­ spired Stephen Decatur to toast, "Our coun­ across the Isthmus. ing at the Big Ditch and there stand firm W•hen they failed Theodore Roosevelt led against the rising tide of communism in the try: in her intercourse with foreign nations may she always be right; but our country Americans in an engineering and managerial Caribbean. feat that was the moon shot of the begin­ Have we become so spineless. so cowardly right or wrong", lead our United States Sena­ tors to respond to the Treaty proponents with ning of the century. that we jump when a.ny tiny foreign power, To Panama we paid $10 million to obtain bent upon blackmail, snaps its corrupt fin­ the same eloquent defiance to the Germans' gers? demand for surrender used by General the Canal in perpetuity. Anthony C. McAuliffe at the Battle of the From the bankrupt French Canal Com­ If so, then former Undersecretary of State, Bulge-"NUTS !" pany we bought its rights and properties George Ball, was right when in 1962 at the to the Canal for $40 million. dedication ceremony on the opening of the WHY A TREATY $20 million Thatcher Ferry Bridge that And to Colombia we paid $25 million in Why the great haste to cede our sov­ 1922, to the disgust of Teddy Roosevelt. crosses the Canal at Balboa, he said in effect: ereignty in the Canal Zone to the Republic of Panama? We built a 51 mile Canal with three sets of •Luncheon talk given before delegates of While we are told by Ambassadors Bunker locks at each end capable of raising and the 59th American Legion Convention, Den­ and Linowitz that world public opinion de­ lowering ships 85 feet. ver, Colo. August 24, 1977 mands a new treaty, and while we have been The chamber of each lock is 110 feet wide September 21, 1977 EXTENSIONS OF REMARKS 30267 materials o! war used against our American and 1,000 feet long. The gates to each lock each o! whom had served as chief of naval a.re 7 feet thick and 10 stories high. operations; namely Arleigh Burke, Thomas H. soldiers. Too often, and with disastrous results !or Each filling of a lock requires 52 million Moorer, Robert B. Carney, and George W. gallons of water and takes 8 minutes to fill Anderson wrote to the President as follows: this country, businessmen follow the dollar by gravity. "We note that the present Panamanian instead of the flag! In the building of the Canal enough earth Government has close ties with the present Some o! the businessmen with whom I was moved to fill a ditch 10 feet deep and Cuban Government which in turn is closely talked suggested that their American com­ 50 feet wide, stretching from New York to tied to the Soviet Union. panies would lobby !or a new treaty with Los Angeles. "Loss of the Panama Canal which would Panama. After an expendit ure o! almost $400 mil­ be a serious setback in war would contribute I hope that 1! they do the American lion, the building o! the world's largest earth to the encirclement o! the United States by taxpayers and working people o! this nation dam and the creation of the largest man hostile naval forces and threaten our ability will mount the biggest boycott in the his­ made lake, the Canal was ready to transit to survive." tory of America against all companies that the first ship, the S.S. Ancon, on August 15, I don't know about you, but I find the tes­ place price above principle. 1914. timony of those four respected Admirals far CONCLUSION Since building the Canal the United States more convincing on the question o! the im­ portance o! the Canal to America's future Gentlemen, we have accommodated our­ has spent about $7 billion in improvements, selves to or retreated before communism maintenance and investments. sa1'et:,," than an~;thing that might be said cy Linowitz, Kissinger, Ford, or Carter. since World War II. Now communism is Under our sovereign operation of the Canal on our southern doorstep. it has always been available to all nations INTERNATIONAL EXPLOITERS The time is here when we must forget except our enemies in times of war. Ambassadors Linowitz and Bunker say about world opinion, which incidentally has The tolls have been reasonable and uni­ that the American nublic is ignorant about never contributed one depreciated dime to form. Only twice in 63 years of operation the Panama Canal issue. the tax bill o! America. have we raised the tolls; once in 1973 from They are right if they are speaking about Let us think America !or Americans. 90 cents per ton to $1.08 and again in 1975 the details of the proposed treaty. These Let us stop worrying about corrupt, black­ !rom $1.08 to $1.29. two representatives of our international mailing dictatorships throughout the world, Since we have lost $27 million on the oper­ clique of bankers have refused to answer and instead charge our public officials with ation o! the Canal from 1973 through 1976, many vital questions put to them by our the ,velfare of our own citizens. we must wonder what would happen to the Congressmen. Whether we admit it or not communism is tolls if Torrijos were to gain control o! the But 11' they are speaking about the impor­ at war with what remains of the free ,vorld. Canal and raise them drastically to pro:luce tance of the Canal to the United States they In his great address before the Congress much needed revenue. are dead wrong. General Douglas MacArthur recognized this Two months ago I partially transited the The great majority 01' Americans know that elementary fact 01' modern life. Canal on a Danish container vessel carrying we paid more for the real estate of the Zone He warned, "The Communist threat is a a payload of 13,000 tons. She was 690 !eet than we did for either Florida or Alaska global one. You cannot appease or otherwise long and 100 !eet wide. Her toll charge was and that America alone built the Canal and surrender to communism in Asia without $26,000. She saved a quarter of a million has succe!'sfully operated it as a great inter­ simultaneously undermining our efforts to dollars by avoiding the extra 10 day journey national waterwav ever since. halt its ad,·ance in Europe". around the Horn. Yes. and these hard working. taxpaying If we mean to remain a land o! the free WE NEED THE CAN AL Americans recognize the value of the Canal then we must immediately regain the initia­ to the future of our nation. t iYe from the communist forces of the world. The Canal is important to America's eco­ I tell you. sir, that regardless of the se­ nomic growth and vital to our national We can do this best by making our stand cret i\·e and cowardly plans of the give-away at the Big Ditch. security. boys. the average American means to hang Instead of a public debate over a proposed Last year about 13.000 ships transited the on to the Panama Canal forever! give away treaty o! the canal we should Canal. This is almost twice the number And if that means driving from the seats demand cf our public officials an immediate that used the Canal the year a!ter World of power those pul:>lic officials who ,,·ould severance o! dinlomatic relations with the war II. place the welfare of the Re':>ublic of Pan­ Republic of Panama as long as it tolerates The Canal can handle 96 percent o! the ama above that of the United States. then the flagrant disre~ard o! human rights by World's shipping. \\·e shall be al:>out that great task at once. its dictatorial regime. The Canal has been of great economic For practical purposes Panama is bank­ value to the consumers o! America. For ex­ Gentleman. I respect!t11ly challenge you to rupt. join me in sending to the Halls o! Congress ample, 42 percent o! all cargo going through When Torri,los grabbed the reins of power the Canal originates in the Unite:! States an emphatic and reverberative "NO" to the in 1968 without benefit of an election the gi,·e-away of our Panama Canal. and 21 percent o! all cargoes are destined public debt was $160 million. Now it stands for our nation. at $1.4 billion. Approximately 30 percent o! all physical The current budget !or Panama is $607 commodities transiting the Canal are energy million. Estimated re,·em1es of ~346 million related, such as petroleum, coal and coke. fall far short o! the budget. Current debt WE ARE BEING BLACKMAILED Next month it is anticipated that three service is 5221 million. BY A TWO-BIT DICTATOR large tankers a day will transit the Canal The list of banking creditors of the Pan­ bearing Alaskan oil !rom Prudhoe Bay to ama Go,·ernment reads like an International the energy hungry eastern seaboard. Bankers Who's Who. Dare we lea\·e such an important trans­ It includes the Narody Bank of Moscow. HON. ROBERT J. LAGOMARSINO portation link in our economy to a dictatorial the London Branch of the Chase Manhattan OF CALIFORNIA communist leaning regime that has so poorly Bank. Citicorp International Bank of Lon­ IN THE HOUSE OF REPRESENTATIVES managed its internal affairs that it now must don. International American Development pay 40 Sc of its annual budget to debt Bank. Continental Bank of Chicae"o. the Ex­ Wednesday, September 21, 1977 services,· port Import Bank of Washington. the Marine Mr. LAGOMARSINO. Mr. Speaker, I We do not have a two-ocean navv. Former Midland Bank. and the Agency for Interna­ Secretary o! the Navy William M!ddendorf ,vould like to bring to the attention of tional Development. my colleagues the following editorial. and other naval experts have made that All of these banks are vitallv interested clear. Hence, the Canal is vital to our na­ in the success of the pro':>osed treatv. They [From The Camarillo, Cali!., Daily News, tional securitv !or the movement of naval see the American taxpaYer as eventually pick­ Sept. 9, 1977] vessels from one ocean to the other. ing up the tab for bailing Torrijos out of PAY TO BE KICKED? The Canal can handle 98 percent of all o! hock. President Carter is out to sell the Panama our naval vessels, including our nuclear sub­ marines. Only our large aircraft carriers can­ But I believe the taxpayers of this land Canal treaty and we must say that so far his not make the transit. are plain sick and tired of dancing to the I\1adison Avenue approach is interesting. After the Singlaub incident we all know tune fiddled by our errant diolomats. He has enlisted one former President, a that the President keeps a. headlock on the I was told recently by American business­ number of top Republicans and the military. military. Active commissioned offic ers will men in Panama that they had a good dic­ The pitch is the canal is no longer really either say what the administration desires tatorship and that a new treaty would help necessary because ,\·arships and oil tankers or remain silent. their business. are too big to use it. Therefore, we must look to our retired Some of these businessmen were like rep­ Also. the top military men tell us that this officers for the most accurate and honest resen ta ti ves o! those American multi­ country can't defend the canal against un­ appraisal o! the importance o! the Canal to national corporations who supplied Russia. friend1'· reYolutionaries in Panama. The our security. with the technology and machinery that l\farxist-leaning dictator is also siding with Earlier this month !our retired admirals made it possible to supply Vietnam with the Carter, promising civil disorders threaten- 30268 EXTENSIONS OF REMARKS September 21, 1977 ing the canal i! the Senate !ails to ratify the sibly a natural backlash from earlier years Natural gas is a clean, efficient and desir­ treaty. when energy industries enjoyed too much able fuel whose price has been kept artifi­ The Senate should reject the proposed favor ( tax wise-concessions) and were too cially low for almost 25 years. As a result, the treaty if for no other reason than it makes cozy with Congress. demand for natural gas has grown enor­ us look like a bunch of suckers. First, we are Now, with reformist fervor, many in Ccn­ mously while production has declined. On the being blackmailed by a two-bit dictator. gress are attacking-in effect a 180° turn one hand, natural gas has been too cheap in Second, why should we pay $50 or $60 mil­ from earlier times. comparison with other fuels, and on the lion a ye:u until the year 2000 for the So, if our government simply can't bring other, it has not been profitable enough to privilege of being kicked out? themselves to trust the energy industry with encourage producers to go out and look for decontrol, then I suggest a middle ground more. of gradual decontrol and legislation guar­ This is, in fact, the crux of our energy anteeing all profits generated from that problem. We have simply been using more NATIONAL ENERGY POLICY action are reinvested in energy production. than we should, while at the same time, Third. The alternative to gradual decon­ discouraging the production necessary to trol and guaranteed profit reinvestment in meet future demand. HON. JAMES ABDNOR energy production is an elaborate series of Regulating natural gas prices may have taxes designed to raise the price of U.S. en­ seemed like a service to the public at the OF SOUTH DAKOTA ergy equal to the world price, as far as the time it was begun, and it may seem so to IN THE HOUSE OF REPRESENTATIVES consumer is concerned. many consumers today. But I see no public Wednesday, September 21, 1977 But what's the cost of all this new govern­ service in shortages, in an abrupt transition ment regulation and intervention? Do you to higher prices or in a growing dependence Mr. ABDNOR. Mr. Speaker, there really think this extra monev collected will on other countries for an increasing propor­ seems to be a growing recognition among be redistributed to the consur{iers fairlv? And tion of our energy needs. the citizens of this country that our most important. how do all these "disc~uraae I mention this not because I am looking Nation has an energy problem, but there the consumer from using" taxes help the for an opportunity to criticize government, is a good deal of confusion and uncer­ petroleum and natural gas industries in­ but because I think it bears on the dialogue crease their production to the needed levels? which is now taking place about this coun­ tainty in their perception of the gravity To conclude. I'm for conservation. and to try's energy policy, the form it should take of the situation. The leadership of the some extent. higher fuel prices will force and the degree to which government should Federal Government in proposing policies greater conservation. But. I would far rather control this country's response to the energy and solutions has only compounded the pay the higher bills directlv to the en <> rav problem. existing perplexity. industries than as t..xes to the governm~;t. Distasteful as it may be, I think we should One of my constitutents, Mr. Chuck I'~ convinced that the U.S. energy industry. recognize that higher energy prices are in­ Shroyer of Mitchell, has recently written with far greater inherent efficiencv than the evitable. 3M does, and it seems clear that me of his concern. He forwarded his U.S. Government. will make m{1ch better the government does, too. u~e of the dollars. and in the end. will pro­ The President. for example, proposed a. tax thoughts together with the comments of nde lower energy prices for the consum~rs on oil which would raise its cost to consum­ a leader of a segment of America's free than if we go the Carter proposed tax route. ers and thus help promote conservation. The enterprise system which is playing a Thanks. revenues generated by this and other taxes large role in the development of South CHUCK SHROYER. presumably would be used to fund a variety Dakota. As legislative leaders, we should of government programs, or perhaps even be pay close heed to the thoughts of both: COMMENTS rebated to consumers. I see little merit in To Our Stockholders: this approach. Not only does it have ques­ MEMO tionable value as a means of encouraging AUGUST 29, 1977. There is a growing. though still inade­ quate, recognition in this country of a seri­ conservation, but it does nothing to stimu­ To: Congressman James Abdnor. late the development of new energy supplies. From: Chuck Shroyer. ous energy problem. There may be different l~vels of concern, depending on where people 3M favors, instead, the gradual decontrol Subject: National Energy Policy. of oil and natural gas prices which would Attached is an outstanding energy position ll\"e, what they do for a living or how well they can cope with higher energy prices. But allow them, over time, to rise to their free statement by Mr. Ray Herzog, chairman of market levels, generating profits which would the board and chief executive officer of the there is recognition and, it seems a consensus which closely parallels our own position on be reinvested in the exploration and develop­ 3M Company. You should know that 3M did ment of new energy reserves. not ask me to write this. In fact, I've been the energy problem. We belie\·e act!on rr.ust be taken to con­ Nobody likes higher prices. But I think struggling with putting my thoughts do·.vn we have to ask ourselves which is preferable: and I have franklv found the task to be a i:en-e energy in industry, home and trans­ portation and, just as importantly, to de­ artificially low prices which promote waste tough one ( which ·rm sure is no surprise to and inefficiency and lead to shortages and an you). In effect, the 3M energy message "gal­ velop new oil and natural gas reserves. We also favor greater use of coal, development increasing dependence on foreign supplies, vanized" me into action. So-here are mv or the higher pries which encourage domestic thoughts which I hope you will consider. · of safe, efficient nuclear power, tax credits for capital projects which conserve energv production and help insure the energy sup­ President Carter is correct when he savs plies we need. we are in an energy war and it truly deserves and continuing research on new technolo: gies which are unfamiliar today but which 3M, ob\·iously, has little to gain over the our attention now. Unfortunately, President short term from gradual decontrol of oil and Carter's suggested course of action places far almost certainly will become commonplace in the vears ahead. gas prices. Our costs, for the fuel we use too much emphasis on taxes being increased and the energy used in the production of the to discourage consumption (and certainly I beiieve President Carter did the countrv a service in his energy message bv calling things we buy, would certainly rise. We !avor consumers) and far too Ii ttle on increasing gradual decontrol because we expect to be production. I'm not any more anxious to pay attention to the energy problem i{i such a way that it can no longer be denied or in business for a long time to come and higher fuel bills than a\·none else is-but because our future depends on adequate when faced with a choice of higher taxes or wished away. And certainly. I agree with the o?Jectives of his energy program. But in my energy supplies. higher fuel bills because of gradual decon­ Please note that I am not suggesting gov­ trol of energy price restrictions, I'll choose new, he erred in making what seems to be the characteristic assumption of our times: ernment does not have a responsibility and the latter. a role to play in the solution of the energy My reasons for this are simple: that gO\·ernment should dictate the solution to our problems. problem. GO\·ernment will and must be in­ _First. Our government has been tampering volved. What I am saying is that the United with supply and demand on petroleum and The energy problem defies simple explana­ tion. It is enormously complicated. But I States should relr primarily on market natural gas for far too long alread\·. By forces, because I believe they will prove more attempting ot lcok like heroes to constimers. think it can be said with justification that government, far from being the onlv in­ effective. they'\·e discouraged producers from going I am optimistic about our ability to solve after all but the easiest to reach energy stitution which can solve our energy prob­ lem, is in many ways the cause of it. And I our energy problem, and I believe in.dustry, in sources. In effect they have indirectlv and its own interests and those of the country, cert::.inly inadvertently created the· verv think it is fair for us to consider, as we de­ bate the m 0 rits of the President's program will do at least its share and, very likely, crisis they are now attempting to solve. · and Congressional alternatives. the extent to more. But i! we are to be successful in our Second. I realize that there is distrust of which government should control the use of attack on the probl·em. we also will need big ?usiness in the Congre:ss generally and energy in this countrv. understanding and support from govern­ specifically in response to the energy indus­ Government control of natural gas prices, ment and the public. tries. Since I don •t work for the energy indus­ is cited frequently by critics of government One of the most difficult problems facing try. I feel free to speak in a candid and intervention. and with good reason. It is a industry is the lack of coordination among unbiased manner. It appears to me that most classic example of what happens when government agencies and departments as of the fears are unwarranted. and quite pos- market forces are disrupted. well as the multitude of government regula- September 21, 1977 EXTENSIONS OF REMARKS 30269 tions which stifle progress by creating un­ brate the anniversary of their passage, at better able to obtain information about certainty. which point they are trotted out. But every Rhodesia from Salisbury than from the Let me give you an example. 31\! favors the now and then the U .N. does very concrete White House, given the President's long con\·.3rsion to coal from oil and natural gas harm, Rhodesia being a case in point. silence in respo:1Se to the inquiring corre­ in industrial facilities. and so does the fed­ Lord Home, when he returned to Her spondents. eral government. We also are prepared, if Majesty's government as secretary for for­ One would hope there would be some necessary. to make substantial investments eign affairs in 1973, admitted that if the limit-somewhere-to the indignities the in coal-fired boilers and the pollution-con­ Conservative party had been in power, it United States is \\"illing to undertake in be­ trol equipment ther would require to meet would not have gone along when sanctions half of our blood-war against Rhodesia. environmental regulations. But current were voted by the Security Council against pollution regulations r-3quire that we em­ Rhodesia in 1965. Why? Because, he said, he ploy the "best available" technology, not just does not believe in sanctions except in ex­ now but in the future. This means we could treme circumstances, and the Rhodesian make multi-million-dollar im·estments in situation was not an extreme circumstance. CONSERVATIVES AND THE CLINCH systems which could suddenly become At the time, Dean Acheson fiercely denounced RIVER BREEDER REACTOR obsolete and require still another substan­ the imposition of sanctions as clearly in tial investment. Would you make the in­ violation of the U.N. Charter inasmuch as vestment? the government of Rhodesia, having de­ HON. HENRY J. HYDE clared its independence of Great Britain, was OF ILLINOIS I also believe business <:!·=serves to be on its own as regards internal arrangements. treated fairly. We are major users of energy, Just the same, Great Britain, in a fit of (N THE HOUSE OF REPRESENTATIVES and we want to make major contributions to pique that would have great resonance, asked Wednesday, September 21 , 1977 the solution of the energy problem. But I for, and got, sanctions. do not believe we should be asked to bear a Years went by and last spring, seeking to Mr. HYDE. Mr. Speaker, it is a cliche disproportionate share of the burden. There tighten these sanctions, the Security Council to many in the media and the groves of is an unfortunate tendency in this context to voted to freeze all Rhodesian funds every­ academe that we conservatives are nay­ view the interests of business and consumers where in the world ( except when used to pay as differe.nt when they really are comple­ sayers and obstructionists and chronic pensions). The idea \Vas to immobilize the defenders of the status quo. How para­ mentary. There is a tendency to say, "Let two or three Rhodesian Information Offices business bear the cost," an attitude which is extant. Why? One would think that the doxical then, to find so many of us who not only inequitable but which ultimately is mighty powers represented at the Security call ourselves conservatives strongly sup­ self-defeating. since business. if it is to sur­ Council would have very little to fear from porting the proposed funding of the vive, must pass these added costs along to the tiny office in Washington whose annual Clinch River breeder reactor and so consumers. budget is $200,000 and whose principal ex­ many liberals saying "no, thou shalt What we need today from my point of view ecutive, Kenneth Towsey, has duly registered not pass." 1s sensible, consistent and coordinated poli­ as an agent of a foreign power. What harm It is \Ye, Mr. Speaker, who are the cies and regulations on the part of gov­ can he do? ernmental units; a reasonable balance Certainly Mr. Towsey has been in a posi­ optimists, the true progressives who want between government and the free market; tion to be u seful to newspapermen who to move fonYard to meet the challenges and a r-3cognition that the national interest desire information about Rhodesia that isn't of the next decades, and those of a more should prevail over narrow personal or cor­ easy to get elsewhere. Needless to say, the liberal persuasion ,vho want to return too porate interests or political expediency. If Rhodesian Information Office makes the case much of our society to the wilderness we can approach the energy problem in this for the Rhodesian government-that is its that abounded 100 or so years ago. way, then I have no doubt we will be equal job. But in doi:~g so it handles a great deal I have the uneasy feeling that, for var­ to the challenge. of material-stories, statistics, photographs, ious reasons, the urgent nature of this R.H. HERZOG, field accounts, notices of negotiations­ Nation's energy situation is given little Chairman of the Board which do not come in automatically from and Chief Executi1;e Officer. the world ·s press. thought by most Americans. So long as When terrorists from Zambia descend on gasoline is readily available at the gas a Christian mission in Rhodesia and murder stations, and we are not in the middle of a few nuns, that information is not likely a bitterly cold winter, other more pleas­ CARTER'S SELECTIVE HUMAN to reach us courtesy of the Zambian Infor­ ant topics successfully compete for our RIGHTS POLICY mation Service, and one cannot count on attention. But it takes no special insight AP's being on the spot. to see that our country is just beginning So when the resolution to freeze Rhodesian to feel the inevitable energy shortages HON. ROBERT E. BAUMAN funds was offered, and U.S. representative that, when fully realized, will disrupt Andrew Young voted in favor of it, a group OF MARYLAND of journalists addressed a letter to President our economy and standard of living to IN THE HOUSE OF REPRESENTATIVES Carter asking whether he intended to in­ unacceptable dimensions. Wednesday, September 21, 1977 terpret that resolution as requiring him to We remember that, following World freeze funds payable for the maintena:1ce of War II, nuclear energy was like the genie Mr. BAUMAN. Mr. Speaker, the the Rhodesian Information Office . Among in a bottle-a tremendous force for good Carter administration continues its war­ the signers were Patrick Buchanan, John or evil-and once we had mastered its fare against the American people's right Chamberlain, Stanton Evans, James Jackson dimensions it would be harnessed for the to know. An administration which claims Kilpatrick, and Nick Thimmesch. President good of all mankind. Somehow we got to have a high regard for human rights Carter has, to this day, not answered th3ir sidetracked in this endeavor because has determined to close down the patient inquiry. other less exotic forms of energy were Rhodesian Information Office here in However, Rodding Carter III, assistant secretary for public affairs and department available at a very cheap price. Now "the Washington on the basis of a United spokesman, has now replied to an inquiry party is over" and we must take a long Nations resolution which is not worth the from someone in Corvallis, Oregon with the and intense look at our options. It is time U.S.-paid-for paper on which it is news that yes indeed, the State Department to reconsider nuclear energy and the part written. intends to freeze the Rhodesian currency, it must play in our future. Columnist Wiliiam F. Buckley, Jr., has upon recommendation from the Treasury Nuclear energy has, as its natural en­ pointed up the inherent hypocrisy of Departme:-i t. "Although the resolution was not specifically directed against informa­ emies, certain professional environmen­ the Carter stand on this issue and I tional activities," he writes, "the Rhodesian talists and their adherents. In a larger share his views with my colleagues: Information Office . . . clearly falls within sense, technology is their enemy-any­ BLOOD-WAR AGAINST RHODESIA the categories of offices referred to in the thing that involves the pristine wilder­ (By William F. Buckley, Jr.) resolution." ness that smacks of development and Those who believe that the United Na­ On the question whether this deprives U.S. growth and expansion and that uses tions is entirely irrelevant are correct up to citizens of their First Amendme::. t rights to energy is to be resisted. Nuclear energy a point. It is true that moral declarations find out what's going on, Mr. Carter is abso­ is an obvious area for their opposition issuing from the U.N. and bearing its moral lutely chirpy with optimism. "American because it conjures up the horrors of pedigree are suspect, in the same sense that citizens will still be able to obtain informa­ Hiroshima and Nagaski-mushroom professions of virtue from political candi­ tion about Rhodesia from other sources, in­ dates are suspect. Mostly, U.N. declarations cluding directly from the regime in Salis­ clouds and radiation and vast numbers are filed away until the time comes to cele- bury." American citiz·ens may, in fact, prove of dead. 30270 EXTENSIONS OF REMARKS Septeniber 21, 1977 Those who supported nuclear develop­ nix; Brita.in has the PFR supplying eiec­ an opponent to the new Panama Canal ment have been gradually disappearing tricity to northern , the Soviet Treaties. At the time of his testimony, from government. The Atomi ::: Energy Union is prepared to turn on its second on September 15, 1977, thz media appar­ Commission ·was replaced by the Energy large plant and is planning construction ently decided it was not of sufficient merit Research and Development Administra­ of another more than twice its size; West for their coverage, despite the fact that tion. which in turn is being absorbed by Germany, Belgium, and Japan are all they gave full coverage to statements by the ne\\. super-agency under Dr. Schles­ pushing ahead on developing breeder re­ advocates of the treaties during commit­ inger, the Department of Energy . The actors. While other countries are moving tee hearings. same is true of the Nuclear Regulatory along with their breeder program, the This statement was made by William J. Commission. Even in Congress, the Joint United States is dragging its feet, and Rogers, past national commander of the Committee on Atomic Energy has been reducing the most effective \\"eapon in American Legion before the Internation­ deprived of its \·itality if not its life. our arsenal-our ability to create our al Relations Committee f!eptember 15. The result has been a loss of adequate O\\·n energy source. STATEMENT BY WILLIAM J . ROGERS forums for kno\\'ledgeable discussions on The health and environment issue, Mr. Chairman, Members of the Commit tee these issues, and now highly complex while worthy of close attention, is far on International Relations : It is a distinct scientific topics are the subject matter from the decisive factor the professional pleasure for me to appear before you today of Sunday supplement articles and TV antinuclear lobby would have us believe. representing The American Legion. Needless specials. where three sentence explana­ We have been producing and handling to say, we are each aware of the thousands of inches of ne\\·sprint and the hours of tions on every issue, no matter how tech­ plutonium for over 30 years. Ten thou­ television coverage which h ave been devoted nical, are the only acceptable form. sand pounds of it have been vaporized t o t he proposed Panama Canal Treaty in the All this unders: ores the difficulties in the Earth's atmosphere in bomb tests, past mcnth. My reason for appearing before \\·hich beset those of us in Congress who, 10 million times the total releases ex­ you today is two-fold : first, to represent the lacking the training and expertise, must pected annually if all our electricity were viewpoint and position of The American Le­ render judgments on this issue-judg­ generated from plutonium. Plutonium is gion as ad:J pted by our re::: ently concluded ments which could well determine the used as an energy source in our space 59 th Na tional Convention and my observa­ sort of society we and our grandchildren program and in medicine-cardiac pace­ tions in traveling during 12 months through­ out the United States and Panama. Second­ will be living in down the line. makers, for example. With all of this, I ly, I will spell out--objectively and dispas­ There are two main problems with know of no evidence that any human sionately-what our concerns are and why nuclear energy : the danger to our health being, anywhere in the \\"orld, has ever we object to this specific treaty. and the danger of nuclear weapons been injured by plutonium toxicity. During these past 12 months, it has been proliferation. Neither of these has pre­ The General Accounting Office has said my honor and privilege to visit all of t he sented an insurmountable obstacle to the United States should not give up on Departments of The American Legion. We many responsible scientists, and their fast breeder research and development have a department in every state and terri­ and concludes, "there has been prema­ tory making up the United States. At each views, plus what I hope is a liberal dose meet ing wit hout exception, our members of commonsense, compel me to support ture concern and emphasis on com­ were concerned about the possibility that the committee bill authorizing Sl50 mil­ mercializing" the breeder reactor, and the United States Government would relin­ lion to keep the research and develop­ environmental, health, and weapons pro­ quish sovereignty of the U.S . Canal Zone and ment project going at Clinch River for liferation considerations. The GAO Canal. Furthermore, we would give it to a the next year at least. This sum should argues that the most prudent path to dictat::: rship in Panama which runs contrary provide the project with enough oppor­ follow is to pursue the Clinch River to our natural inst incts as American citizens. tunity to go forward in the search for breeder reactor as a research and devel­ Today, I have come to speak for our four million members of The American Legion scientific knowledge so that we will be opment effort, particularly because " a and the American Legion Auxiliary. We rep­ better able to make informed intelligent decision on commercialization does not resent miners in West Virginia; grain grow­ de · isions in the future. need to be made for perhaps 7 to 10 ers in Illinois and Iowa; energy producers of The anticipated requirements for en­ years." Texas; machinery manufacturers in New ergy in the next 25 years will be at least In the past, the Congress has author­ York; and shipping industry of all states double our present consumption. Even ized work on the Clinch River breeder re­ where rivers and harbors open to the sea this is a \Yild guess because we cannot actor-nearly 60 percent of the design . . . although we represent a composite and work has been completed. The ERDA bill microcosm of the United States. For most imagine at this time what discoveries lay of us in The American Legion and all our just ahead from an inquiring and vital before us today continues our commit­ citizens are either buyers or sellers of com­ scientific community. ment to a tremendous national asset that modities passing through the Panama Canal. But surely no one maintains that our must be thoroughly researched by the Moreover, all of us are dependent on the Nation can meet our present much less Government to see if it can be used protection of the U.S. Navy to control the our future requirements with our pres­ safely and economically. seas surrounding our country in the center ent resources. Even without the OPEC In closing, I want to share with my col­ of the Western Hemisphere. Quite frankly, leagues the final paragraph of a Sep­ the main thrust from every Legion Post was cartel complicating our present situa­ the same, deep apprehension about the pro­ tion, as responsible Members of Con­ tember 16 Chicago Tribune editorial, posed Treaty with Panama. Not the least gress we must look far ahead to the ful­ " Keep The Fast Breeder Alive"; concerned were our Legion Posts in the U.S. fillment of our Nation's long-term inter­ The House should vote the full ERDA au­ Canal Zone. Did the United States really ests even ,vhen these might, here and thorization. That will not commit us to a intend to abandon its citizens to a dictator­ there, oppose our short-term desires. "plut::: nium economy·· in the future, but it ship? If so, what did the United States stand All of the so-called exotic energy will enable us to see if adequate prolifera­ to gain from such a giveaway? t ion and health safeguards can be devel­ sources must be researched and, where I don't think it will come as a surprise to oped-while also assuring that energy from the members of this committee, but I think feasible, developed. But surely nuclear nuclear fission will remain available to us if it may come as a surprise to certain of our energy in the form of the Clinch River it should turn out to be as safe and as vitally leaders in the Executive Branch and to cer­ breeder rea · tor is one of the most prom­ needed as its advocates predict. tain of our national cartoonists in recent ising areas of exploration. The expecta­ weeks, but the typical Legionnaire, who also tion is entirely reasonable that this proj­ happens to be the typical American, under­ ect can lead us to plentiful, safe and stands the Panama Canal situation. The economically feasible energy in amounts OPPONENT OF THE PANAMA CANAL average Legionnaire understands the facts TREATIES and the realities of standing straight for to meet our country's needs into the year what is right, and objecting to something 2000 and beyond. which is wrong and not in the American We must consider whether the dangers HON. ROBERT J. LAGOMARSINO interest. described by opponents justify scrapping OF CALIFORNIA Though we have opposed any treaty which the fast breeder reactor program as the would surrender U.S. control and ownership President proposes. IN THE HOUSE OF REPRESENTATIVES since 1960, Legionnaires throughout the Wednesday, September 21, 1977 country have been given both sides of the Upon analysis, the proliferation argu­ picture. In The American Legion Magazine, ment lacks substance. Other countries Mr. LAGOMARSINO. Mr. Speaker, I which goes to every member, we invited the have had little ciifficulty building their would like to bring to the attention of top spokesman for the Republic of Panama. own fast breeders. France has the Phe- my colleagues the following testimony by Ambassador Gonzalez Revilla, to state the September 21, 1977 EXTENSIONS OF REMARKS 30271 case for the Panamanian government. The ports and transited the Canal. The volume of Panama received the same 1977 rating on Ambassador's position to transfer ownership military-sponsored cargo in the four years political and civil liberties as the Soviet of the ·zone and Canal to Panama was from 1964 to 1968 increased, for dry cargo, Union, and was rated even lower than Cuba. printed in full in the October 1976 issue of by some 640 percent and for petroleum prod­ Gen. Torrijos came to power in Panama by our magazine. Congressman Daniel Flood ucts by about 430 i:;ercent. And the number a coup and is governing without the consent was invited to state the case for U.S. sov­ of U.S. Government vessels (chiefly naval) of the people. The truth is that since Gen. ereignty in the same issue. transiting the Canal increased from 284 in Torrijos participated in the overthrow of At our National Convention recently com­ 1!;)65 to more than 1,500 in 1968."' Panama's constitutional government by gun­ pleted in Denver, we invited Ambassador Within the military community, and point in 1968, 1.6 mi,lion people have lost Sol Linowitz to come and to take as long as among the retired and active military, there their human rights. There is no political he liked to state the case for giving the U.S. is great diversity of opinion. In addition to party except the Communist Party, called the Zone and Canal to Panama. As you know, the historic letter of four distinguished People's Party, El Partito del Pueblo. Further­ Ambassador Linowitz is articulate and Chiefs of Naval Operation, incl·..iding the more the monies from Panama Canal annu­ knowledgeable on all the issues as the U.S. former Chairman of the Joint Chiefs, Ad­ ities do not go directly to the people, the negotiator, and presented the Administra­ miral Thomas H. Moorer, saying that the pro­ money goes to the Torrijos power group. tion's viewpoint to our Foreign Relations posed Treaty is contrary to the security inter­ As you are probably aware, the Panamanian Commission for well over an hour. ests of the United States, we are hearing from c:mstituticn requires a plebis::::ite vote of the Since this was the major issue to be de­ many military leaders and the majority of people for ratification of any new Treaty, cided by our National Convention in 1977, these opinions, like the majority of our citi­ which will be he:d on October 23. The sad we decided to set the Panama resolution zens, are opposed to the give away of the irony is that the controlled and censored aside from other foreign policy considera­ Zone and the Canal. Panama press-"guided" in the terms of our tions and vote on it separately, by roll call, From a military viewpoint, a commander chief negotiator-will never give a full and department by department if necessary. so never gives away strategic territory which objective account of the Treaty to the Pan­ we could be sure that the National Conven­ he may have to fight to regain. The U.S. amanian people. tion did not trespass on the will of our Canal Zone is strategic territory. All the mili­ Another concern which we have is the po­ members, so we would know the real vote. tary, both active and retired, agree on that litical association and economic stability of After the Chairman of the Foreign Rela­ point. the government in Panama. On the economic tions Commission, Dr. Robert P. Foster, From an economic perspective, the Canal side; under Gen. Omar Torrijor Panama's seated here beside me, read the resolution, is vital to United States interests. In 1975, national debt has grown from $167 million to convention members in a voice of one, called approximately 14,000 ships transited the $1 .5 billion. The debt service alone will con­ out for a vote. The vote to oppose giving the Canal of which 45 percent originated in the sume 39 percent of that country's budget U.S. Zone and Canal away was unanimous. United States and 23 percent were bound this year. Panama's Department of Planning Although there were ov~r 3,000 delegates rep­ for the United States. No ether nation even indicates that to refinance loans coming due, resenting the 2.7 million members of our or­ approaches the invaluable, economic stake together with the $139 million deficit, a total ganization, there was not one dis sen ting vote! which we have in the Canal. However, the of $323.6 million will be required. Obviously, The silence of the "nays" was as persuasive Canal is important to all maritime com­ Panama cannot financially afford to have the as vocal shouts of the "yeas." The truth is mercial nations since 96 percent of the Treaties rejected either. that The American Legion has expressed its world's merchant fleet can transit it. Politically, Panama's Omar Torrijos has collective judgments. The full text of that alined himself with the most repressive pro­ resolution is appended to my statement The Canal is just this year assuming an additional commercial importance to the Communist regimes in this hemisphere­ today. those of Cuba's Fidel Castro, 's Mi­ I will now discuss the reservations and ob­ United States as Alaskan oil begins to flow. When the Alaskan pipeline reaches its full chael Manley, and Guiana's Forbes Burnham. jections which we have to this proposed According to U.S. Information Agency, Tor­ treaty. The first is the strategic and military capacity, it will yield 1.2 million barrels of oil a day. The west coast of the United States rijos issued a communique last April with importance of continued U.S. control of the pro-Arab terrorist dictator Col. Moammar Canal and the Canal Zone. At the onset, we can accommodate only 700,000 barrels a day. This means that approximately 500,000 bar­ Qaddafi of Libya denouncing what they called realize that the United States has a one­ "Zionist aggression by Israel." The com­ ocean Navy with a global responsibility. rels a day cannot be used on the west coast, and must be transported to the east. No munique was issued at the end of a week­ Today all but 13 of the ships in the U.S. pipeline has yet been constructed across the long visit by Torrijos to Libya, for the pur­ Navy-the exception being the large aircraft pose of creating close economic and political carriers-can pass through the Canal. More­ United Shtes, and the trip around the Horn, as has been demonstrated, i.s not economic­ ties between the two countries. over, we, along with the Congress, must be Jack Anderson and Les Whitten stated in "forward looking" and long-range prognosti­ ally fea~ible. Unhindered use of the Panama Canal is critical until an adequate pipeline their nationally syndicated column on June cators regarding the true effects now and in 16 that they had evidence that this Torrijos­ the future of the proposed treaty. As each of can be constructed. Moreover, at the present time, the United Qaddafi meeting had also resulted in a secret you are aware, we have made a national deal between Libya and Panama to give Arab commitment to the "mini-carrier" concept. States has an over-all investment in Panama of $7 billion. By the year of our total evacu­ extremists a foothold in the Americas and And, when they come on line in 3-5 years, I to cooperate with the Arab boycott against ation under the terms of the Treatv. that have been assured by the Navy that they can Jewish manufacturers. traverse the Canal, making the Canal even interest will have grown to $9.3 billion. To Torrijos has also busied himself with mak­ more important in a military sense in the add insult to injurv, the Treaty proposes ing closer political and commercial ties with years ahead. that we pay some $70 million per year, plus the Soviet Union. Again, according to the Harrison Baldwin has recently written: "It about $350.0 million in economic and mili­ U.S. Information Agency, top officials from is ironic, indeed, that in an era when the tary aid to have the Torri 1os group take over the Soviet Po.itburo and Central Commit­ U.S. Navy needs the Canal to a greater degree the territorv and propertv. tee of the Soviet Communist Party visited than at any time since the end of World War Contrarv to µopular arg11ment. contrnl of Panama last June. Almost immediately after II, Washington is considering its abandon­ the Canal bv the Unit.ed Stfltec:; serves the the Soviet Politburo team left Panama, a ment. The Navy today 1s in the same strategic best economic interests of the peoole of Soviet commercial delegation headed by bind it was in prior to World War II: It is a Panama. In 1976, U.S. aczenr.ies m1rchac:erf Nikolai Zinov:ev arrived and concluded a one-ocean Navy (in size and power) with over $29 mllli0n wort,.., of qnods in Panama, major Soviet-Panama commercial agreement two-ocean responsibilities. We are outnum­ a'1d we nairi over $1()8 million in W

SEPTEMBER 30 mittee of the Committee on Energy Select Indian Affairs 8:00 a.m. and Natural Resources on S. 2053, To hold hearings on the concept of creat­ Energy and Natural Resources proposed deep seabed mining legis­ ing an independent Indian agency. To continue hearings on the proposed lation. 357 Russell Building Alaska natural gas pipeline route. 3110 Dirksen Building Select Small Business 3110 Dirksen Building Human Resources To receive testimony on the implemen­ 9:00 a.m. Education, Arts, and Humanities Subcom­ tation of that part of P.L. 95-89 which Select Nutrition and Human Needs mittee established priorities for the award­ To resume oversight hearings on food To resume hearings on S. 1753, to extend ing of contracts to firms located in la­ quality in the Federal food program. the Elementary and Secondary Educa­ bor surplus areas. Until 1: 00 p.m. 6202 Dirksen Building tion Act of 1965. 424 Russell Building 4232 Dirksen Building OCTOBER 7 9:30 a.m. Select Indian Affairs 9:00 a.m. Foreign Relations To resume hearings on Federal Indian To receive testimony on economic con­ Banking, Housing, and Urban Affairs Domestic Assistance programs. International Finance Subcommittee siderations from executive branch of­ 6202 Dirksen Building To hold oversight hearings on the ac­ ficials on the proposed Panama Canal tivities of the Exchange Stabilization treaties. OCTOBER 5 318 Russell Building 9:30 a.m. Fund. 6226 Dirksen Building Human Resources Foreign Relations 10:00 a.m. Labor Subcommittee To continue to receive testimony fron, Membt:rs of Congress on the proposed Banking, Housing, and Urban Affairs To continue hearings on S. 1183 and Financial Instituti:ms Subcommittee 1855, to strengthen the remedies and Panama Cana1 treaties. :n8 Russell Buil'ding To continue oversight hearings on vari­ expedite the procedures under the able rate mortgages and on alterna­ National Labor Relations Act. Human Resources To hold hearings to receive testimony tive mortgage instruments. 4232 Dirksen Building 5302 Dirksen Building Veterans' Affairs from Executive branch officials in con­ nection with recent studies on human Human Resources To hold hearings on a study by the Na­ Health and Scientific Research Subcom­ tional Academy of Science on heal th resource programs. 4232 Dirksen Building mittee care for American veterans. To hold oversight bearings on the im­ Until 12: 15 p .m. 4221 Dirksen Building 10:00 a.m. Banking, Housing, and Urban Affairs plementation of the National Health 10:00 a.m. Planning and Resources Development Joint Defense Production Consumer Affairs Subcommittee To continue hearings on S. 2065, to pro­ Act of 1974 (P.L. 93-641). To continue to receive testimony from 6202 Dirksen Building DOD officials and defense contractors vide consumer rights and remedies in on defense procurement practices. electronic fund transfer systems. OCTOBER 10 5302 Dirksen Building 5302 Dirksen Building 9:30 a.m. Banking, Housing, and Urban Affairs *Judiciary OCTOBER 3 Antitrust and Monopoly Subcommittee 9:30 a.m. Rural Housing Subcommittee To continue hearings on S. 1150, Rural To hold hearings jointly with the Health Judiciary and Scientific Research Subcommittee Administrative Practice and Procedure Housing Act of 1977. 6226 Dirksen Building of Human Resources Committee on Subcommittee the regulatory and competitive aspects To hold hearings on S. 1720 and 1721, to Commerce, Science, and Transportation To resume he·arings on S. 61, requiring of the health care industry. provide for improved administrative 4232 Dirksen Building procedures. that a certain percentage of U.S. oil 2228 Dirksen Building imports be carried on U.S. flag vessels. Veterans· Affairs To resume hearings on S. 364, proposed 10:00 a.m. 5110 Dirksen Building Veterans' Administration Administra­ Banking, Housing, and Urban Affairs Energy and Natural Resources Consumer Affairs Subcommittee tive Procedure and Judicial Review Parks and Recreation Subcommittee Act. To hold hearings on S. 2065, to provide 1976, To continue hearings on S. to add Until 1 :30 p.m. 6226 Dirksen Building consumer rights and remedies in elec­ certain lands to the Redwood National tronic fund transfer systems. Park, California. OCTOBER 11 5302 Dirksen Building 3110 Dirksen Building 10:00 a .m. Select Small Business Rules and Administration Banking, Housing, and Urban Affairs To hold hearings on S. 1815, Small Busi­ To hold oversight hearings on the pric­ ness Venture Capital Act of 1977. To hold hearings on S. Res. 166, to create 4.24 Russell Building a coordinated administrative manage­ ing of Federal Reserve services. ment system for the Senate. 5302 Dirksen Building OCTOBER 4 301 Russell Building Foreign Relations 9:30 a.m. OCTOBER 6 To hold hearings on H.R. 7819, S. 1256, Foreign Relations 9 :30 a.m. and S. 1257, to amend the laws relat­ To receive testimony from Members of Human Resources ing to diplomatic immunity. Congress on the proposed Panama To continue hearings to receive testi­ 4221 Dirksen Building Canal treaties. mony from Executive branch officials OCTOBER 12 318 Russell Building in connection with recent studies on 9:00 a.m. Human Resources human resource programs. Judiciary Aging Subcommittee 4232 Dirksen Building Constitution Subcommittee To hold hearings on S. 1282, to provide Veterans' Affairs To hold oversight hearings on activities assistance for legal services projects To resume hearings on a study by the of the Civil Rights Commission. for the elderly. National Academy of Science on health 2228 Dirksen Building 1224 Dirksen Building care for American veterans. 10:00 a.m. 10:00 a.m. Until 1 :00 p .m. 6226 Dirksen Building Banking, Housing, and Urban Affairs Agriculture, Nutrition, and Forestry 10:00 a.m . Nutrition Subcommittee To continue oversight hearings on the Banking, Housing, and Urban Affairs pricing of Federal Reserve services. To hold hearings on the role of the Financial Institutions Subcommittee USDA in nutrition research. 5302 Dirksen Building To hold oversight hearings on variable Human Resources 322 Russell Building rate mortgages and on alternative Banking, Housing, arid Urban Affairi; mortgage instruments. Education, Arts, and the Humanities Sub­ Consumer Affairs Subcommittee 5302 Dirksen Building committee To bold hearings on S. 1150, Rural Banking, Housing and Urban Affairs To resume hearings on S. 1753, to ex­ Housing Act of 1977. tend the Elementary and Secondary Rural Housing Subcommittee - 6226 Dirksen Building Education Act of 1965. To continue hearings on S. 1150, Rural Banking, Housing, and Urban Affairs 4232 Dirksen Building Consumer Affairs Subcommittee Housing Act of 1977. To continue hearings on S. 2065, to pro­ 6202 Dirksen Building OCTOBER 13 vide consumer rights and remedies in Judiciary 9:00 a.m. electronic fund transfer systems. Administrative Practice and Procedure Judiciary 5302 Dirksen Building Subcommittee Constitution Subcommittee Commerce, Science, and Transportation To resume oversight hearings on the To continue oversight hearings on activi­ To resume hearings jointly with the Freedom of Information Act. ties of the Civil Rights Commission. Public Lands and Resources Subcom- 1202 Dirksen Building 2228 Dirksen Building 30276 CONGRESSIONAL RECORD-HOUSE September 22, 1977 10:00 a.m. OCTOBER 27 Finance Banking, Housing, and Urban Affairs 10 :00 a.m. To resume markup of proposed Energy To hold oversight hearings on issues fac­ Banking, Housing, and Urban Affairs Tax Act of 1977 as embodied in H.R. ing HUD concerning operating costs To continue oversight hearings on the 8444. on distressed FHA multi-famlly hous­ 2221 Dirksen Building ing projects. role of the FHA in home financing. 5302 Dirksen Building 5302 Dirksen Building SEPTEMBER 27 Human Resources Judiciary 9:30 a.m. Constitution Subcommittee Education, Arts, and the Humanities Sub­ Human Resources committee To continue hearings on S. 35, proposed Labor Subcommittee To continue hearings on S . 1753, to ex­ Civil Rights Improvements Act of 1977. To continue bearings on S. 1883 and tend the Elementary and Secondary 2228 Dirksen Building 1855, to strengthen t he remedies and Education Act o! 1965. OCTOBER 28 expedite the procedures under the 4232 Dirksen Building 10:00 a .m. National Labor Relations Act. 4232 Dirksen Building OCTOBER 14 Banking, Housing, and Urban Affairs 10: 00 a.m. 10 :00 a.m. To continue oversight hearings on the Human Resources Banking, Housing, and Urban Affairs role of the FHA in home financing. To continue oversight hearings on issues Education, Arts, and Humanities Sub­ 5302 Dirksen Building committee facing HUD concerning operating NOVEMBER 9 costs on distressed FHA multi-family To resume hearings on S. 1753, to ex­ housing projects. 10 :00 a.m. tend the Elementary and Secondary Banking, Housing, and Urban Affairs 5302 Dirksen Bullding Education Act o! 1965. OCTOBER 18 To resume oversight hearings on U.S. 318 Russell Building 9 :30 a.m. monetary policy. SEPTEMBER 28 Judiciary 5302 Dirksen Bullding 9 :30 p .m. Antitrust and Monop:>ly Subcommittee NOVEMBER 10 Human Resources To continue hearings Jointly with the 10:00 a .m. Labor Subcommittee Health and Scientific Research Sub­ Banking, Housing, and Urban Affairs To continue hearings on S. 1883 and 1855, committee of Human Resources Com­ to strengthen the remedies and ex­ To continue oversight hearings on U.S. pedite the procedures under the Na­ mittee on the regulatory and competi­ monetary policy. tive aspects of the health care indus­ tional Labor Relations Act. try. 5302 Dirksen Building 4232 Dirksen Buildin.e: 4232 Dirksen Building DECEMBER 13 SEPTEMBER 29 OCTOBER 19 10 :00 a.m. 9:30 a.m. 10:00 a .m. Judiciary Human Resources Judiciary Constitution Subcommittee Labor Subcommittee Administrative Practice and Procedure To hold hearings on S.J. Res. 67, propos­ To continue hearings on S . 1883 and Subcommittee ing an amendment to the Constitution 1855, t o strengthen the remedies and To hold hearings on proposed legislation with respect to the proposal and the expedite the procedures under the Na­ tional Labor Relations Act. dealing with the Department of Agri­ enactment of laws by popular vote of 4232 Dirksen Building culture's policies, practices, and pro­ the people of the United States. cedures regarding family farmers. 10:00 a .m . 2228 Dirksen Building 2228 Dirksen Building Conference OCTOBER 20 DECEMBER 14 On S. 1019, authorizing funds for fiscal 10:00 a .m . 10:00 a.m. years 1978 and 1979 for certain mari­ Judiciary Judiciary time programs of the Department of Administrative Practice and Procedure Constitution Subcommittee Commerce. Subcommittee To continue hearings on S .J. Res. 67, pro­ S-128, Capitol To continue hearings on proposed legis­ posing an amendment to the Constitu­ OCTOBER 4 lation dealing with the Department of tion with respect to the proposal and 9:30 a .m. Agriculture's policies, practices, and the enactment of laws by popular vote Judiciary procedures regarding family farmers. Juvenile Delinquency Subcommittee of the people of the United States. 2228 Dirksen Building To resume hearings on the implementa­ 2228 Dirksen Building OCTOBER 26 tion of the Juvenile Justice and Delin­ 10:00 a.m. CANCELLATIONS quency Prevention Act of 1974. Banking, Housing, and Urban Affairs 2228 Dirksen Building SEPTEMBER 23 To hold oversight hearings on the role 10:00 a.m. OCTOBER 11 of the FHA in home financing. Banking, Housing, and Urban Affairs 9:30 a.m. 5302 Dirksen Building Judiciary Financial Institutions Subcommittee Judiciary Juvenile Delinquency Subcommittee Constitution Subcommittee To continue hearings on s . ::.460 and To resume hearings on the implementa­ To hold hearings on S . 35, proposed Civil 2096 protecting the privacy of public tion of the Juvenile Justice and De­ Rights Improvements Act of 1977. financial records. linquency Prevention Act of 1974. 2228 Dirksen Building 5302 Dirksen Building 2228 Dirksen Building

HOUSE OF REPRESENTATIVES-Thursday, September 22, 1977

The House met at 10 o'clock a.m. PRAYER and wisdom. Help us to reflect on look­ Dr. Clifton W. King, minister, Greater ing for a way to lay aside our misunder­ DESIGNATION OF SPGAKER Los Angeles Church of Divine Science, standings and know, with Your guid­ PRO TEMPORE Los Angeles, Calif., offered the following ance, man can live with man in a world prayer: of peace and caring. One where chil­ The SPEAKER pro tempore (Mr. O, Spirit, who is the Mother-Father of dren find joy in growing to be adults. WRIGHT) laid before the House the fol­ all the human family, grant wisdom to Knowing wherever man exists there is lowing communication from the Speaker: those we have chosen to govern our land. oneness, for You are the Mother-Father WASHINGTON, D.C., May their decisions be toward the goal of all, the Omnipresence, now and for­ September 22 , 1977. of peace for all. We have the principles evermore. Amen. I hereby designate the Honorable JIM WRIGHT to act as Speaker pro tempore for of trust and honor to God, country, and today. family. Let all our decisions be based THE JOURNAL THOMAS P. O'NEILL, Jr., on this premise that our fairness leads Speaker of the House to justice for all. Then we know the The SPEAKER pro tempore. The Chair of Representatives. world wil: see the source of our strength has examined the Journal of the last