May 2, 1980 CONGRESSIONAL RECORD-SENATE 9755 SENATE-Friday, May 2, 1980
• This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. 9756 CONGRESSIONAL RECORD-SENATE May 2, 1980 events have happened. I make a plea to and not before the world's microphones ing number of our colleagues in the Con my colleagues, not only in the Senate and television cameras, where we would gress, that Senator DURENBERGER'S bill is but in the House, to act with restraint in only further degrade America in the eyes a realistic, hopeful approach to the diffi this matter. of the people. cult problem of rising health costs. I am sorry to say that the first news I A superintendent of the public schools I am privileged to be a cosponsor of heard of the rescue efforts was on an of a large county in North Carolina said the Health Incentives Reform Act, and early morning television show, and to me last night that the mission had I compliment my good friend from there I saw two of my colleagues de certainly been a great success in one Minnesota for providing the leadership manding an investigation before I even way, if no other, in that at long last in the Senate on this important issue. I had time to hear reports of the event one mission had been carried out in this know that every Member of the Senate itself. I think it is regrettable that we in country without it first being leaked to will find the editorial from the Minne Congress are willing to try to second the news media. apolis Tribune of great interest, and I guess the President in the world media I think that is the feeling of the Amer ask unanimous consent that it be printed before the facts are even known to those ican people. So I sound this word of in the RECORD. most entitled to them. caution. There being no objection, the editorial The night before last, I watched an I was a private citizen back in North was ordered to be printed in the RECORD, ABC news program which I thought Carolina during the Vietnam war. I do as follows: was reprehensible. The anchorman on not know the rights and wrongs of that REALISM AND HOPE ABoUT HEALTH-CARE the late show came onto the screen and war. But I have a vivid recollection of COSTS said that, according to a reliable source, the chairman of the Foreign Relations There is much realism and some hopeful Colonel Beckwith, the rescue team's Committee grilling Dean Rusk on tele ness in current congressional discussions of commander, was opposed to scrubbing vision, nationwide television, which, in health-care costs and health-insurance pro the mission. Then he said, "We are now effect, was worldwide television, about posals. The reJ.lism recognizes that neither taking you to a small town in Georgia," the policies and practices of that war. cost control by federal regulation nor ex and the name of the slips my panded health coverage by federal spending town I do not know what the feeling was can win many votes in 1980. Bills to put mind, "where we'll talk with Colonel in Washington, but the feeling back in limits on hospital spending have run Beckwith's brother." North Carolina generally was that we aground on specific objections and on gen There, in an insurance office in Geor could not possibly hope to win that war eral resistance to increased federal rule gia, another ABC newsman reiterated with every strategy and every action be mJ.king. Proposals for federal health insur the statement that, according to the ing debated by the Congress before the ance cannot get past the obstacle of their colonel's brother, it was unlikely that staggering expense. The hopeful counterbal world. ance to these considerations is a growing the colonel would have recommended I realize that we in the Congress have interest in structural reform of the medical scrubbing the effort. responsibilities of oversight, and investi marketplace. In the first . place, if that were the gations are part of that responsibility. In that marketplace health-insurance colonel's brother's speculation, I really But when we are dealing with national plans cover four out of five people for hos think that it is stretching it pretty far security, I plead with my colleagues to pital care and 40 percent for visits to doc to quote him that way in the news do it in executive sessions. Let us not do torr.' offices. Usually the insurance comes as media. Then the newsman turned to the it on nationwide television if, in doing a fringe benefit, partly or wholly paid for by colonel's brother, who did not even employers. But with broad freedom from so, we would tend to damage the na worry about medical expenses come powerful substantiate what had been said. When tional image and national security of incentives to run health-care costs up in asked if he thought the colonel would this country. stead of to curb them. Patients are inclined have recommended scrubbing the mis I thank the majority leader. to welcome care or diagnosis they may not sion, his statement was: need, because, after all, it seems to be free. I do not believe my brother or the Presi Physicians are rewarded for "over-doctoring," dent or anyone else would have scrubbed the because they are paid a fee for each service. mission without adequate reasons. ORDER OF BUSINESS And hospitals find it easy to let costs esca late, because for them more costs mean more Then the program turned back to Mr. ROBERT C. BYRD. Mr. President, revenue. With the best of motives through Washington and that was it. may I ask the acting minority leader if out the system, the system itself is biased Last night, the same ABC news show, he wishes any time? toward extravagance. after Colonel Beckwith's news confer Mr. STEVENS. Mr. President, I would In other markets such bias is corrected by ence, in which the colonel emphatically be happy to yield back time on this side. competition. Can competition be required in stated that he did recommend scrubbing I will yield it to anyone who might the medical field without doing damage to the mission, devoted almost its whole want it. health-care quality, without hindering in program to the Cuban refugees. Only in surance coverage and without depriving the Mr. ROBERT C. BYRD. Will the dis nonwealthy of good medicine? Prominent the last 15 or 30 seconds was the Beck tinguished acting minority leader yield with news conference just mentioned, among congressmen 1pushing for positive to the distinguished Senator from Okla answers is Minnesota's Sen. Dave Duren notwithstanding the fact that great homa
TABLE 111.-SENIORITY OF MAJORITY AND MINORITY LEADERS OF THE SENATE (1911-
Years of service in Senate Years of service in Senate Before Before becoming becoming Democrats leader As leader Republicans leader As leader
Byrd of West Virginia ______Baker------______Mansfield ______18 10 (1? 8 \I~ Scott __ ------______10 Johnson------______4 8 Dirksen ______8 10 McFarland ______------______---- __ 10 2 Knowland ______-~ 9 5 lucas ______------10 2 Taft ______------14 1 Barkley ______10 11 Bridges ______------__ ------15 1 Robinson ______------______------____ ------Wherry ______------___ _ Underwood. ______10 14 6 2 5 3 White ______------13 3 Kern ______------4 McNary ______------______------___ _ 15 11 Martin 2 ______2 16 5 Wa son ______------13 4 Curtis ______------10 4 26 5 22 5 a~~Cullom r~ger: ______======---- == 17 2
1 Since 1977. 2 Broken term's. Mr. ROBERT C. BYRD. Mr. President, Democratic and Republican majority or I ask unanimous consent, Mr. Presi one Senator, Mr. Lodge of Massachu minority leaders, respectively, served as dent, to have printed in the REcoRD a setts, had previously been chairman of the chairman of a standing committee table which will indicate-beginning four standing committees and was prior to their election as leader. with Thomas Martin of Virginia, a Dem chairman of one committee during his Of these eight Senators only two held ocrat 1911, and beginning with Shelby leadership. Ten of the 24 leaders were a standing committee chairmanship at Cullom of Illinois, a Republican, 1911- chairmen of committees while serving the Senate majority or minority leaders all. Lyndon Johnson was chairman of with prior concurrent or subseqeunt serv simultaneously as leader of their party the Aeronautical and Space Sciences but a number of the others decided not ice as standing committee chairmen. Committee from 1958 to 1961 and Mike This will represent table IV. to continue their committee chairman Mansfield was chairman of the Rules There being no objection, the table ships after having been elected leader. and Administration Committee from was ordered to be printed in the REcoRD, None of each of the four most recent 1961 to 1963. as follows:
TABLE IV.-SENATE MAJORITY OR MINORITY LEADERS WITH PRIOR, CONCURRENT, OR SUBSEQUENT SERVICE AS STANDING COMMITTEE CHAIRMEN I
Service as committee chairman Service as committee chairman Tenure Con- Subse- Tenure Con- Subse- Majority or minority leader as leader Prior current 11uent Majority or minority leader as leader Prior current quent
Democrats: Republicans: Thomas Martin (Virginia) ______x x Shelby Cullom (Illinois)______1911-13 X X {mtm Jacob Gallinger (New Hampshire)______1913-18 X. X John Kern (Indiana) ______1913-17 ______X Henry Cabot lodge (Massachusetts)______1918-24 X X Oscar Underwood Alabama)______1920-23 X Charles Curtis (Kansas) ______1924-29 X X Joseph Robinson (Arkansas)______1923-37 X James Watson (Indiana)______1929-33 X Alben Barkley (Kentucky)______1937-49 X X Charles McNary·(Oregon) ______1933-44 X ------Scott lucas (Illinois)______1949-51 X ------Wallace White (Maine)______1945-49 ------X Ernest McFarland (Arizona)______1951-53 ------Kenneth Wherry (Nebraska)______1949-51 ------lyndon Johnson (Texas) ______1953-61 ------X Styles Bridges (New Hampshire)______1952-53 X ------X Michael Mansfield (Montana) ______1961-77 ______X Robert Taft (Ohio)______1953- X ------Robert Byrd (West Virginia) ______1977------William Knowland (California) ______1953-59 ------Everett Dirksen (Illinois) ______· 1959--69 ------Hugh Scott (Pennsylvania)______1969-77 ------· Howard Baker, Jr. (Tennessee) ______1977------
1 Table prepared by Robert A. Keith, research analyst, Congressional Research Service, library of Congress. Mr. ROBERT C. BYRD. Since 1927 the Seat assignments in the Senate are the majority and minority whips. Mr. Democratic leader, and since 1937 the generally made based on seniority of CRANSTON is the Democratic whip and Republican leader, respectively, have service, with a pattern of giving the new Mr. STEVENS is the Republican whip. continuously oocurpied the center aisle Members the back row seats farthest So this enables the majority leader front row seats on the same side that from the center aisle. and the majority whip and the minority their party members occupy. Then, as Members depart from the leader and the minority whip, respective Senator Oscar W. Underwood was the t::enate, the seats are reassigned and, as ly, to work together and to more effec first leader to occupy one of these two a general rule, the more senior Members tively discharge their duties as floor seats to which he was assigned from are moved downward toward the front leaders and assistant leaders. 1921 to 1923 while leader of the Demo row and nearer the center aisle. I should say this also puts them di crats, but he then retained it until 1927 The two front row desks on each side rectly in the line of vision of the Chair. even while Senator Joseph T. Robinson of the center aisle are now occupied by The majority leader, as I believe I indi was the Democratic leader. the majority and minority leaders and cated in an earlier statement, is accorded May 2, 1980 CONGRESSIONAL RECORD-SENATE 9759 the courtesy and prerogative of first rec party-which might cut across the de The work and the burdens of the ognition even though the Senate rule sires of the individual Member. majority and minority leaders cannot states that the Chair shall recognize the The majority leader must schedule be underestimated; ought not be under Senator who first rises and addresses the legislation, and cften must do so in ac estimated, should I say. There is no Chair. The majority leader is accorded cordance with the course and in keeping question but that they are, except by the that prerogative. with the course of the legislative pro persons who hold the respective omces. So, having the front seat in the center gram of his own party. The leader of the party is the "mit of the aisle puts the majority leader di Obviously, the leaders have to have igator'' for the individual ills and prob rectly in the line of vision of the Chair, the support of their party organizations. lems of individual Members. He is the where the majority leader can be easily Unfortunately, there are not very many cement that holds the party together. recognized. "plums" that can be distributed by the The leader's knowledge of legislation Having the majority whip adjacent to leaders to Members who support the must include information as to when the the majority leader in the seating ar leaders from day to day and from time various committees will report bills or rangement makes it possible for the ma to time in connection with very contro resolutions, so that the leader then can jority whip-in the event the majority versial votes. plan for working those particular items leader is off the floor-to also be almost Senators and Representatives are con into the calendar. I am talking now not directly in a straight line of vision to the cerned with the States and districts they about the Senate calendar, because when Chair. represent, and there are, comparatively they are reported from the committees The same thing can tbe said for the mi speaking, few strictly party votes, cer they appear automatically on the calen nority leader and minority whip. tainly in recent Congresses. dar in the order in which they are re Mr. President, I ask unanimous con But this is unfortunate because if ported. And the committee reports will sent to have printed in the 'RECORD a ta party government is to survive, there indicate the sequence in which the vari ble-designated V-showing the occu must be present not only a semblance of, ous measurfs are renorted. pants of the front row seats on either but also, and more importantly, the Today, for instance, the last item on side of the U.S. Senate center aisle from reality of a political organization. If the calendar of general orders is Calen 1920 to date. there is going to be party discipline in dar Order No. 724, S. 2101 , "A bill to au There being no objection, the table the U.S. Senate-and without party thorize the use of certified mail for the was ordered to be printed in the RECORD, discipline the legislative program cannot transmission or service of matter which. as follows: be properly coordinated and shaped nor if mailed, is required by certain Federal can it be effectively achieved-there laws to be transmitted or served by TABLE V.-CHART SHOWING THE OCCUPANTS OF THE TWO must be political organization. registered mail, and for oth~r purposes." FRONT ROW SEATS ON EITHER SIDE OF THE CENTER OF If there is to be party government in So this means that 724 measures have THE U.S. SENATE FROM 1920 TO DATE t the Senate-and in the other body, for been placed on this calendar since the that matter-senators and Representa beginning of the 96th Congress. The first Republican side Democratic side tives cannot ignore their respective po Year occupant occupant item on the calendar today is Calendar litical parties, just turning to them for Order No. 11, Senate Resolution 9. Tile convenience's sake. 1920-2L ______LaFollette ______Chamberlain. calendar states the order number, which 1921- 23 ______LaFollette _. ------Underwood.2 The leaders, with the aid of their is 11, then it states _the number and au 1923-25 ______LaFollette ______Underwood. whips and the whip organizations, have 1925- 26 ______Cummins ______Underwood. thor of the bill, which is Senate Resolu 192&--27 ______Phipps ______Underwood. to reckon with all of the inconsistencies, tion 9 and the author is Mr. RoBERT C. 1927- 3L ______Phipps ______Robinson.2 the variances, the individual problems, BYRD, and it states the title, "Resolution 1931 -33 _~- - --- Capper______Robinson.2 1933- 36 ______Capper______Robinson .a the regional, parochial interests, of to amend the Standing Rules.'' 1937______McNary 2______Robinson.a Members, and ~till try to hold enough Then it indicates that the resolution 1938-44 ______McNary 2______Barkley.a 1945-46 ______White 2______Barkley.a supporters together to maintain a co was "reported by." If there is a Senator 1947-48 ______White 3______Barkley.2 herent and effective organization that who reports the item, his name will ap 1949-50 ______Wherry 2______Lucas.a can produce the votes when necessary in in It 195L ______Wherry 2______McFarland.a pear that column. gives the date 1952 ______Bridges 2 ______McFarland.a order to carry out the party's program. on which the resolution was reported or 1953 ______Taft 3______Johnson.2 I have already indicated that the floor on which it was placed on the calendar 1954 ______Know land 3______Johnson.2 1955- 58 ______Knowland 2 ______Johnson.a leaders are chosen by their respective or ordered to be placed on the calendar. 1959-60 •------Dirksen 2______Johnson.a conferences or caucuses. Mr. President, the fact that the first 1961-69 ______Dirksen 2 ______Mansfield .3 1969-77 ______Scott 2______Mansfll!ld.3 I often have persons outside the Sen order on the calendar is shown as order 1977------Baker 2______Byrd of West Virginia.a ate ask me if, upon becoming majority No. 1l indicates that the first 10 items leader, I had to relinquish my service on that were ordered to be placed on that 1 Congressional Directory is the source of the above committees. That is not the case. In the calendar have been disposed of since the information. Senate, the majority leader and the 96th Congress first convened. 2 Minority leader. a Majority leader. minority leader continue to serve on The next item is Calendar Order No. 4 On Jan. 6, 1960, the Republican Confe -ence confirmed that standing committees. I serve on the Ap 12, and the next item is calendar Order the front row center aisle seat on the Republican side was to be occupied by the Republican leader. propriations Committee, the Judiciary No. 63. This means that all of the cal Committee, and the Committee on Rules endar items that were placed on the Mr. ROBERT C. BYRD. Mr. President, and Administration, for example. calendar, in sequence, numbering 13 in speaking of the floor leaders and The leadeD serve only during the through 62 have been disposed of in one whips, these omcers are not mentioned pleasure of the party membership of the way or another. So they no longer ap in the rules. Nevertheless, as I have al bodies of which they are a member. And pear on the calendar. ready indicated, they play very impor this means that every 2 years the major Mr. President, for the convenience of tant parts, very important roles, in the ity and minority leaders must stand for those who read the RECORD, I ask unani enactment of legislation. reelection if they choose to so do, and mous consent that the first page of the From many standpoints being major they must turn to their colleagues for General Orders Calendar as it appears ity leader or majority whip is a thankless that decision. today be printed in the RECORD at this task, and the same can be said for the Into the omces of the floor leaders go point. minority leader and the minority whip. all of the pro::Jlems-I should not say all There being no objection, the material Each individual Senator knows what he of the problems-but many of the prob was ordered to be printed in the RECORD, would like to have done. But the floor lems of their individual members. Often, as follows: leaders must speak not only from that I meet with members of my rarty, col GENERAL ORDERS standpoint, from the standpoint of the lectively and individually, early and late (Under Rule VIII) individual Senator, but also from the during the day. In many instances, the Order No., number and author of bill, title, standpoint of the political party and problems are truly individual problems of and reported by; what is in the best interests of the the individual members. 11. s. Res. 9, Mr. Robert C. Byrd, resolu- 9760 CONGRESSIONAL RECORD-SENATE May 2, 1980 tion to amend the sta.nding rules, Feb. 22, ize the use of certified mail for the transmis two parties of both Houses. There is 1979.-0rdered placed on the calendar. sion or service of matter which, if mailed, is normally, under the Carter administra 12. S.J . Res. 3, Messrs. Harry F . Byrd, Jr .• reauired by certain Federal laws to be trans tion, a leadership breakfast that is held Thurmond and warner, joint resolution re mitted or served by registered mall, and for other purposes, May 1, 1980.-Mr. Eagleton about once every 2 weeks. Generally, it garding mutual defense treaties, Feb. 22, occurs on Tuesdays. At that breakfast, 1979.-Pla.ced -on the calendar. (for Mr. Ribicoff), Committee on Govern mental Affairs, without amendment. (Rept. the President and some of the people in 63. s. 519, Mr. Helms, a. b111 to preserve the 678.) his administration will sit down with the BICa.demic freedom and the autonomy of in Speaker and the leaders of the other stitutions of higher education a.nd to condi Mr. ROBERT C. BYRD. Mr. President, tion the authority of officials of the United body and the President pro tempore and the leader then must know how to plan the leaders in this body. President Car • states to issue rules, regulations, or -orders the work of the Senate. To do this he with respect to institutions of higher eduoo. ter will sound out the leaders within his tion, Apr. 9, 1979.-0rdered placed on the must, as I say, know when the major own party in the two Houses and get calendar. bills and other measures will be reported their information with respect to the 64. s. 520, Mr. Helms, a. bill to provide pro from the committees of jurisdiction and possibilities and the problems that will cedures for caJ.lLng constitutional conven be able to work them into the calendar. confront specific pieces of legislation tions for proposing amendments to the Con The calendar I am talking about now is within the respective bodies. stitution of the United States, on appllca.tion the calendar of days: Monday, Tuesday, of the legislatures of two-thirds of the Stat-es, Wednesday, Thursday, Friday, and Sat Those meetings will often indicate to pursuant to article V of the Constitu urday and so on. He must look down the the leaders of his own party, the Presi tion, Apr. 9, 1979.-0rdered placed on the road, perhaps for a month or 6 weeks or dent's wishes with respect to particular calendar. even longer, in order to do this. And he pieces of legislation, his desires as to pri 80. s. 134, Mr. Helms, a. b111 for the relief has to inform the membership at times orities to be given legislation. The lead of Shyy Wen-Huei, Apr. 24, 1979.-Mr. Ken ers may or may not, as they proceed to nedy, Committee on the Judiciary, without as to what to expect by way of a program amendment. (Rept. 78.) and as to when a particular measure may schedule the actions within their respec 113. s. Res. 15, Mr. Harry F. Byrd. Jr., and be expected to be called up. tive bodies, follow his desires. others, resolution concerning mutual defense The leaders usually have a working I assign, as a usual thing, great im treaties, May 1, 1979.-Mr. Church, Commit knowledge of the contents of the signifi portance to the desires, the feelings, and tee on Foreign Relations, with an amend cant bills that have been reported by the opinions of committee chairmen in ment, and an amendment to the title. (Rept. this body, and the Members of the body 19.) (Additional views filed.) any of the various committees. The chairmen of the various commit who have amendments to measures, in Mr. ROBERT C. BYRD. Mr. President, tees commonly and often consult with my scheduling of measures to be taken I ask unanimous consent that the last the majority leader. They approach him up. That is not to say that I disregard page of today's General Orders calendar and he approaches them concerning the the wishes of the President. They are be printed in the RECORD at this point. measures that are reported from their certainly taken into consideration. But There being no objection, the material committees and concerning plans as to they are not the absolute top priority in was ordered to be printed in the RECORD, when such measures might best be called every instance, by any means. as follows: up. I also often consult with committee I try to keep in mind that the Senate GENERAL ORDERS chairmen to get indications from them and the House are two separate but Order No .. number and author of blll, title, as to what kind of opposition a given equal bodies and that the legislative and reported by: measure may expect to encounter once branch and the executive are separate 718, H.R. 4887, an act to authori:re appro but equal bodies. priations for the San Franc1soo Bay National it is called up. Wildlife Refuge, and for oth-er purposes, The fioor leader from time to time ad Of course, when the President is a Apr. 30, 1980.-Mr. Randolph, Committee on dresses the subject matter of legislation member of the party that is in control Environment and Publlc Works, without before the body. I served in the House of the Senate and House, the relation amendment. (Rept. 672.) of Representatives when Representative ship between the President and the ma 719, H .R . 4889, an act to extend the au Rayburn, of Texas, was the Speaker. I jority leader of his own party in the thori:z;a.tion period for the Great Dismal also served there when he was the fioor Senate is going to be much closer than Swamp National Wildlife Refuge, Apr. 30, leader of the party. In that instance, he if the two individuals are of different 1980.-Mr. Randolph, Committee on Environ parties. ment and Public Works, with an amend was the minority leader. The first year ment. (Rept. 673.) that I was a Member of the House of With respect to the leadership meet 720, S. 2115, Mr. Johnston, a blll to estab Representatives the Democrats were in ings at the White House, the President lish the Bogue Chitto National Wll.dlife the minority. The Speaker was Joe Mar from time to time also meets with the Refuge, Apr. 30, 1980.-Mr. Randolph, Com tin, of Massachusetts, a Republican. The minority leadership of both Houses, sep mittee on Environment and Public Works, minority leader was Sam Rayburn, of arate and apart from the Democratic with amendments. (Rept. 674.) Texas. leaders. 721, S. 2382, Mr. Feinz, a bill to provic'le for He was not a very loquacious man, he There are occasions when the Presi add-itional a.uthorl:z;a.tlon for appropriations was always in attendance when the dent will meet with the joint leadership for the Tinioum National Environmental Center, Apr. 30, 1980.-Mr. Randolph, Com House was in session. He was directing of both Houses, including both parties. mittee on Environment and Public Works, the program and overseeing the mem Jlist like last year, ~ngress will soon allowed to arise so food stamp legisla mittee on Agriculture, Nutrition, and be "legislating in crisis" because the tion must once again be considered on Forestry to prepare a statistical sum food stamp program has again spent tax an emergency basis. Once again, there mary and explanation of some of the dollars faster than anyone imagined will be cries that there is not sufficient most highly significant problem areas in possible. All of this "emergency action" time to resolve necessary food stamp is the food stamp program. I ask that the is not coincidental. Indeed, it is obvi sues. And, once again, badly needed re report provided to me be printed in the ously contrived. The pressure on Con forms will again have "to wait until next RECORD at the conclusion of my remarks. gress is deliberately orchestrated by the year." The report follows: food stamp bureaucracy. But food stamp reform cannot wait. FOOD STAMP FACTS AND FIGURES The taxpayers are being bled white. Leg Last year, after the administration de PARTICIPATION layed for month after month, Congress islative proposals for reasonable reform The Congre~sional Budget Office estimates hurriedly enacted the 1979 "emergency" proposals have been introduced and that in March, 21.7 million people partici food stamp bill which was required to there has been some discussion of pated in the foodstamp program-that is one prevent pro rata benefit reductions to them. Food stamp reform is essential if out of every 10 Americans. all food stamp recipients. Threats of fiscal responsibility is to be achieved. It is estimated that an average of 21.2 mil benefit reductions impacting most heavi Literally billions of taxpayer dollars are lion persons will participate in FY 1980, and ly upon the poorest citizens was the prod at stake. No contrived "crisis" can be 23 million in FY 1981. Only 15.3 million were used to ram the additional billions used as a legitimate excuse for putting participating at the beginning of FY 1979, through Congress on an "emergency" aside reasonable reforms, and I want it 30 percent fewer than the expected level next basis. In that way, consideration of re made clear that this Senate, this year, year. These figures are still less than the is going to have to address the need for numbers FNS targeted in its outreach efforts forming this runaway food stamp pro for FY 1980 (see enclosed outreach table). gram was delayed, and the stage was these reforms. set for massive increases in program Mr. President, the real food stamp Puerto Rico costs. crisis is the refusal by Congress to re As of November, 1979, over 55 percent of form the food stamp program. One out the population of Puerto Rico was receiving In an effort to prevent the occurrence foodstamps. Puerto Ricans represent 9.5 per of another "crisis," Congress adopted of every seven Americans now meets the overly lenient eligibility standards of the cent of the total program._ the Lugar amendment, of which I was a In addition, Puerto Ricans received $748 cosponsor. That provision of the law food stamp program. Indeed, 22 million million worth of foodstamp coupons in makes clear that the Secretary of Agri people are now receiving free food 1979-far more than any state in the nation culture has discretion in the manner of stamps. And, the food stamp program and in fact more than double the amount re reducing food stamp benefits, if program will cost almost $11 billion next year if ceived by every state but New York and Cal expenditures should otherwise exceed it is not. ifornia. approoriated levels. Also. the Lugar This Senator from North Carolina Puerto Rico has the second highest state amendment requires monthly reports does not intend that the truly needy administrative costs, and yet still operates should go hungry. But, I cannot sit idly its program with the highest recipient fraud from the Secretary of Agriculture on the rate of an the states and trusts. program's cost estimates. Since the first by while the food stamp program con To have program administrators saying on report in January of this year, it has tinues to run out of control. American the one hand that participation has leveled been obvious that moderate reductions taxpayers cannot afford to wait another oft', while knowing full well that the pro in program outlays have been needed. year to rein in this runaway program. posed outreach regulations embark on an ef Instead, the Secretary elected to forgo Food stamp program reforms are need fort to expand the program to a total partici any mild and sensible cutback and, ed-now; the Senate has an obligation pant objective of 27.3 million in fiscal year to assure they are enacted this year. 1980, an 11 million person increase, exclusive thereby, risk a program shutdown. of figures for Guam, Puerto Rico and the Vir Meanwhile the leadership in Congress Mr. President, so that Senators may gin Islands, can easily mislead the Congress. has again comolacently sat back while have an adequate understanding of the The fiscal year 1980 estimated participation the long-recognized May 15 deadline ap scope of the problem of food stamp targets on a State-by-State basis, which tar proached. Obviously, the food stamp wastefulness and extravagance, I asked gets were published in the Federal Register "crisis" which now exists was purposely the minority staff of the Senate Com- on April 10, 1979, and are reflected in Table I. TABLE I.-OUTREACH TARGETS ON A STATE-BY-STATE BASIS FISCAL YEAR 1980 s [February 1979 figures used if March 1979 figures not available, thousands of people) Food stamp participation Food stamp participation State February 1979 March 1979 1980 target2 Difference State February 1979 March 1979 1980 target% Difference 726 294 Nebraska __ ------52 ------160 108 53 38 Nevada ___ ------__ 24 64 40 337 215 New Hampshire______42 ------71 29 467 202 New Jersey ______------493 669 176 2, 149 743 New Mexico______140 235 95 276 128 New York______1, 750 ------1,989 239 239 77 North Carolina______494 ------1, 011 517 67 27 North Dakota __ ------19 76 57 104 5 Ohio______718 1, 211 793 1,290 565 Oklahoma_------178 386 208 1, 031 616 Oregon______184 202 18 136 40 Pennsylvania______911 ------1, 291 380 95 58 Rhode Island______70 ------100 30 1, 207 331 South Carolina______317 ------553 236 474 233 South Dakota______32 79 47 225 102 Tennessee______486 ------742 256 227 158 Texas______942 ------2, 359 1, 417 701 300 Utah______43 ------124 81 791 351 VermonL. __ ------______40 63 23 144 14 Vir9inia_ ------267 ------657 690 375 116 Washington______231 ------373 142 573 -77 West Virginia______550 ------298 -252 866 161 Wisconsin______195 ------318 123 365 218 Wyoming ______------__ 10 41 31 659 230 646 384 Total ____ ------16,817 ------+10,806 99 64 n~t ~x~!~~ibl~.of figures for Guam, Puerto Rico and the Virgin Islands, for which target figures are 2 Fieures from Proposed Outreach Regulations, Apr. 10, 1979, Federal Register. From Minority Views, House Report on Food Stamp Act Amendments of 1979. 9774 CONGRESSIONAL RECORD-SENATE May 2, 1980 Characteristics of participants 9. Money received in the form of non-re USDA BUDGET REVISIONS, APRIL 1, 1980 Ninety-three percent of foodstamp house curring lump-sum payments, such as income The administration's January budget pro holds participate in more than one major tax rebates or retroactive social security or SSI payments. posed a foodstamp budget of $9.729 blllion. Federal income transfer program, according The April revision lowered this figure to 10. Any income received too infrequently to the Chilton Study conducted under USDA $9.461 billion, based on the assumption that in 1974. or irregularly to be reasonably anticipated, certain legislative changes are made. These The average food.stamp household partici and which does not exceed $30 in a quarter. include: pates in three programs, aocording to the 11. Costs of producing self-employment study. income. Fiscal year 1981 budget authority Twenty-nine percent of foodstamp house FOODSTAMP BENEFrrS [In billions of dollars) holds own their own homes. according to Food stamp benefits supplement a house Program changes USDA. hold's food purchasing power to a level suffi Annual adjustment of benefits Thirty-six percent own their own cars. cient t -:> provide an economics.l, nutritious on January-January basis______--$0.30 Almost ten percent are Puerto Ricans, ac diet for every member of that household. The Eliminate March poverty level cording to CBO. thrifty food plan, developed by USDA in 1974, Two percent are college students. update to adjust ellgiblllty____ .05 provides the basis for that diet. It assumes Reduce student ellgibUity______.06 0.3 percent are strikers, according to the the amount necessary to feed a family of four Reduce assets limit from latest FNS report. The number of labor consisting of a man and woman age twenty $1,750 to $1,500______.02 management disputes tends to increase through fifty-four, a child six through eight Reestimate of costs due to current dramatically as economic conditions de and a child nine through eleven. The cost of economic conditions______+O. 16 teriorate, so this number can be expected to this diet plan Is adjusted for family size, as increase in coming months. well as twice a year for inflation. ELIGIBILrrY Benefits disbursed under the food stamp Total ------0. 27 The Congressional Budget Office estimates program should not be confused with the REASONS FOR COST INCREASES that one out of every seven Ainerica.ns is now value of the thrifty food plan because 30% Food and Nutrition Services attributes the ellgible to participate In the food.stamp pro of the household's net income Is assumed soaring costs of the program primarily to gram. to be contributed to food purchases. Benefit higher than anticipated food price inflation, If maximum deductions are taken, from levels are determined as follows: and secondarily to unemployment and "other July to December of 1980, familles will be economic factors." Greater-than-anticipated able to earn the following incomes and still · Value of Thrifty Food Plan (adjusted for growth in participation is less of a factor, receive foodstamps: household size) minus 30 percent of Net In FNS claims, contributing only $300 mill1on Maximum come equals Benefit Level. to the cost of the program in FY 1981, as op posed to the $2 billion which food price in gross In FY 1981, average benefits per person per Family size: income flation Is expected to add to program costs. month are estimated at $41.00, or 46 cents The Congressional Budget Office attributes 4 ------$12, 756 per person per meal. The average per person its recently revised and increased estimate 5 ------14, 400 value per month, on the other hand, is ex of program costs primarily to the rapid in 6 ------16, 056 pected to be $56 by FY 1981, or 62 cents per 17,652 meal. crease in participation over the past months. 7 ------Since January, food prices have stabi11zed 8 ------19,296 COSTS while the costs of housing, fuel, transporta (Blll Hoagland, Congressional Budget [In billions of dollars) tion and medical care have risen dramati Office) cally. These increases in the prices of basic In order to determine the level of benefits items have driven up participation in the a family Is to receive, the foodstamp case Fiscal year- foodstamp program as households find they worker calculates a net income figure based 1979 1980 1981 can adjust their expenditures to spend less on several deductions from gross income and on food and thereby accommodate the price a number of exclusions of various types of increases in other items. In addition, ellmi possible payments. Authorization ceilings under current law... 6. 7 6. 2 6. 2 CBO revised cost estimates (April 1980) . __ 6. 8 9. 2 10. 8 nation of the purchase requirement has Net Income is based on the following Administration 's revised budget estimate caused the program to be more sensitive to formula: (Ap; ill980)______9. 0 9. 5 changes in the economy, according to CBO. Bud ret resolution______8. 6 8. 7 And finally, more households may have come Net Income equals Gross Income minus S. 1309, House bill : 1 on to the foodstamp rolls when they applied [Standard Deduction ($80) minus 20 percent Without cushion . . ------8. 7 9. 7 With cushion ______------______for low income energy assistance grants and of Earned Income minus Excess Shelter Ex 9. 1 10.7 Percent. •• ______(5) (10) became for the first time exposed to the pro pense Deduction and/ or Dependent Care Ex gram.e pense Deduction (total not more than $110)] 1 S. 1309 as passed by the House Agriculture Committee would Exclusions from income authorize $8.7 billion for fiScal yea r 1980 and $9.7 billion for fiScal year 1981. In addition, spending could exceed the 1980 HANDBOOK FOR SMALL BUSINESS The following are not Included in the de limit by 5 percent and the 1981 limit by 10 percent if the Secre termination of gross income: tary should determine this money is needed. The Senate has • Mr. NELSON. Mr. President, since 1. In-kind income, such as food, clothing, already voted to lift the current foodstam p cap of $6 .2 billion for fiScal year 1981, wh ich was set under the 1977 Food Stamp 1969, when the "Handbook for Small or housing. Act. Business" was last revised, enormous 2. Vendor payments, or payments made by strides have been taken by the Congress an outside party on behalf of the household. Acoording to CBO's estimate, costs will to make it easier for the entrepreneur to For example, If a friend pays the rent blll have increased 58 percent next year over for the household directly to the landlord, th'JSe last year. And the CBO estimate for start a small business or grow and thrive this would not be counted as income. next year is 73 percent above the amount in an existing venture. 3. Any income excluded by any other fed currently authorized for FY 1981. The $9.5 I am pleased today to announce that eral law from being counted as Income un blllion budget proposal made by USDA for the Senate Small Business Committee der the foodstam;p program. the program next year represents a full forty has completed a comprehensive revision 4. All educational loans on which pay percent of the whole Department of Agricul of the handbook, to include not only the ment Is deferred, grants, scholarships, fel ture budget proposal. changes of the last 10 years, but to put lowships, veterans' educational benefits, and FIRST CONCURRENT BUDGET RESOLUTION the information in a format that can be the like, to the extent they are used for the Sen. Con. Res. 86 recommends that legis easily utilized by the small business payment of tuition and mandatory fees at lative savings of $1.4 blllion be made in the owner who has no special knowledge of an institution of higher learning. foodstamp program tlhrough the following 5. All loans, whether from private individ Government programs. cuts: During those years, the number of uals or institutions, other than educational Fiscal year 1981 budget authority loans on which payment is deferred. businesses in this country has grown 6. Reimbursements for job or educational (In billions of dollars] from 11 .7 million to more than 14.6 mil expenses, for medical or dependent care, for Program cuts lion according to the latest figures, and services provided under Title XX of the So Annual rather than semiannual cost of 97 percent of those are smaller firms. cial Security Act, and for out-of-pocket ex living adjustment ______-0. 3 These small firms form a segment of the penses of volunteers incurred in their work, Count low income assistance and as long as the reimbursements do not exceed school lunch subsidies in calculat- economy which produces more than half actual expenses. ing benefits ______-0. 8 of all industrial inventions and innova 7. Payment received for the care of a third Other !ood.stamp reforms______-0. 3 tions, nearly half of the gross national party in the household. product, and the great majority of all 8. Earnings of children. Total------1.4 new jobs created in the private sector. May 2, 1980 CONGRESSIONAL RECORD-SENATE 9775 During those same 10 years, and more lars to catch up with the Soviets in stra explanations !or Chinese interest in the re tegic weaponry. cent U.S. tobacco trade mission. particularly in the last 4 years, the Con Just what is the Chinese interest in U.S. gress began to recognize the needs of the The analogy extends to our "tobacco tobacco? The evidence provided me by ~he small business community and the giant trading" with Communist China. What U.S. Department of Agriculture, the report of role that community plays in the eco the Communist regime in Peking wants, the Governor's recent trade delegation, and nomic health of our Nation. of course, is U.S. technology-and if we a recent article in The Flue Cured Tobacco Corporate tax changes have already transfer it to them, I am convinced that Farmer magazine-all of this points to the been adopted generating an additional it will ultimately be a severe blow to fact that the Chinese have little interest in $2 billion a year in capital for small our tobacco leaf. What they want and need U.S. tobacco growers. is our tobacco technology. But more about business. Estate tax law revisions have In further reflection upon the impact that later. been made to keep family businesses in that trade concessions to the' Red Chi The reason the Communist Chinese have the family. Regulatory relief has been nese will certainly have upon our tobac little interest in our leaf is simple: They can effected. A greater share of Federal dol co farmers, I prepared an article for not afford it. The Chinese per-capita income lars is being shifted to the small busi the April edition of the Flue-Cure To is so low that it seems almost ridiculous to ness sector in Government procurement bacco Farmer magazine. It explains in Americans. We often hear the income figure and research and development contracts. of $400 per year-that is accurate for only detail the adverse impact that I predict about 20 percent of the people who live in And the Small Business Administration will come from massive technology cities and work in factories. For the 75 to has a much greater voice as an advocate transfers in tobacco production and han 80 percent of the population who live on the for small business, and is providing more dling to the Red Chinese, and it specu agricultural communes, the yearly dispos and more research and assistance. lates upon what that will mean to U.S. able income is closer to $40 per year! These are but a few of the recent growers. The simple truth is that U.S. tobacco, cur positive actions that have been taken It is significant, also, that the official rently valued at $1.50 per pound, would be in Congress to stimulate the small busi report of the Tobacco Trade Mission to equivalent to $27.60 per pound to the Chinese ness sector. Communist China has become available consumer, based on the fact that U.S. per The success of the recent White capita income is 18.4 times greater than since the Senate considered the MFN those Chinese who live in the cities. On the House Conference on Small Business, status legislation. The report substanti basis of that kind of transposition of in which culminated its work in January, ates my conclusions that the Red Chi comes, it is also interesting to note that heralds a small business decade in nese can compete with U.S. tobacco Chinese manufactured cigarettes currently Washington when Congress will do farmers, though the author seems to be sell from 6¢ to 84<' per pack U.S. currency, much more to encourage the growth of lieve otherwise. which means from $1.10 to $15.45 to Chinese this vital sector of our economy by im The fundamental question not as with $400 yearly incomes. The infusion of plementing those recommendations. sessed in the report is: How can our to highly priced U.S. tobacco would make cig If the small businessman is to com bacco growers hope to compete with $40- arettes even more costly, and consequently pete effectively in the marketplace, if a-year labor? My fear is that those who even more beyond the reach of the Chinese the entrepreneur is to act intelligently smoking public. advocate such trade with Red China are So, Mr. Tobacco Farmer, you just aren't go in beginning a venture, they must be rushing to travel a one-way street--a ing to sell tobacco of any consequence to the armed with the best and most up-to street that may very well help lead U.S. Communist Chinese. But hold on to your hat, date knowledge. It is for this that the tobacco growers into oblivion. Mr. Pres because the Chinese plan to sell a great deal new edition of the Handbook on Small ident, I do not doubt anybody's sincer of their tobacco in the world trade. And ev Business has been designed. ity-but I do not want to see our to ery farmer knows that every pound put into As a primer for new businesses or an bacco farmers destroyed because some the world trade by any other country dis update for the established firm, this body was sincerely wrong. places a pound of U.S. flue-cured. handbook will serve as a roadmap The Governor's trade mission's official re through the programs of the 25 Federal I ask that my article, "Trade with port describes in detail the steps the Chinese agencies that can provide assistance to Communist China: Bad News for U.S. must take to improve their production and small businesses. Tobacco Farmers?," and the report pre handling techniques in the growing and mar pared by Dr. W. K. Collins of North Car keting of tobacco. Reference is made to ob The handbook contains information viously incoiTect and sloppy methods in the about tax benefits, financing, manage olina State University entitled, "Tobac co Trade Mission to Peoples Republic of planting, harvesting, curing, marketing and ~ent assistance, buying from and sell redrying processes. The report says the mg to the Government, and research China," be printed in the RECORD at the Chinese are at the stage of development in and technical matters. conclusion of my remarks, so that inter these processes where the United States was It fulfills an obvious need for a guide ested persons may make their own judg 30 or 40 years ago and concludes that "newer, that describes simply, in · layman's ments. more efficient [processes) would contribute The material follows: favorably to their [improved) operation." terms, the dozens of programs available The Chinese have given very little atten to small business. TRADE WITH COMMUNIST CHINA: BAD NEWS FOR tion to quality, because farmers are paid for The American dream of owning one's U.S. TOBACCO FARMERS? quantity rather than quality. Their research own business is still alive. The Senate (By JESSE HELMS) ers have not been able to introduce new and Sn:tall Business Committee believes that The stage has been set for a great calamity improved plant varieties for this reason. How this reference work will make it a little for U.S. tobacco farmers. The Most Favored ever, there is strong indication their research bit easier for the entrepreneur's dream Nwtion legislation by Congress provides the ers realize this and have introduced tobacco to become a reality.e Communist Chinese increased access to our practices and varieties which, according to markets for their products-including tobac the report, "appeared to be quite usable by co !-by reducing gross tariff rates by some world standards." The report concluded that NEW COMPETITION FOR U.S. 40 percent. In addition, it makes available to "the cured leaf observed does indicate the TOBACCO FARMERS them all kinds of credits using U.S. taxpayers' potential to produce acceptable-appearing dollars to finance their trade with us. curing leaf in the PRC." ~Mr . HELMS. Mr. President, at the Really, now, doesn't trade have to be a To the extent that the United States pro t~e the ~enate considered the legisla two-way street? Trade with Communist vides the assistance to the Chinese Com tion grantmg most-favored nation status China can never be a two-way street for the munists to accomplish these things, we can to Communist China back in January I United States for two reasons. One, there is do so only to the clear disadvantage of our a vast difference in circumstances between warned of the potential for adverse~ own tobacco farmers. pact upon the United States. the United States and the Chinese markets, It is important to bear in mind that these a principal factor of which is the incredibly changes in cultivation and handling practices The ultimate question, of course, is low Chinese per-capita income. Secondly, the must precede any other k-ind of trade. The whether the United States has ever real Chinese are not at all interested in import Governor's report points out that the Chinese ly be_nefitte~ from trade with any Com ing our product~nly our technology. cigarette-manufacturing equipment is anti munist nation. In the instance of the Precisely as was the case with the Soviet quated and inefficient. Modern technology in ~oviet Union, for example, we engaged Union, the Red Chinese intend to combine ci~arette manufacturing is essential to the m t~hnology exports which netted our advanced technology with their cheap Chinese because they cannot now meet do American manufacturers a few millions labor-essentially slave labor-to gain the mestic cigarette demand ... and because they foreign exchange to pay for the industrializa need to devise means to come up with addi of dollars: But, as a result, it will cost tion of their country. Both of these elements tional foreign exchange. the American taxpayers billions of dol- o! the one-way trade advantage are ample Such new and mOdern equipment could 9776 CONGRESSIONAL RECORD-SENATE May 2, 1980 not efficiently use Chinese tobacco as it is staff were able to secure the invitation and PRC Most-Favored-Nation (MFN) status and presently c1t1tivated and handled. It would Mr. W. D. Lewis made the final arrangements remove restrictive tariffs. Hearings are cur be a complete waste to use any U.S. leaf for the mission. rently underway in the Ways and Means with Chinese tobacco as it is presently The American Embassy in Beijing was ex Committee of the U.S. House of Representa brought to the blending rooms because any tremely helpful with the mission, especially tives on this Trade Agreement. Congressional advantage imparted by the U.S. leaf would Mr. William Davis, Agricultural Attache, who approval is expected in early 1980 of this be overwhelmed by the improperly handled was with the mission November 1-10. agreement which will aid the industrial sit and cured Chinese tobacco. THE PURPOSES OF THE TRADE MISSION uation of PRC and expand mutually bene So, even to those who mistakenly assume ficial commercial relationships. Additionally The purposes of the Trade Mission were: the Trade Agreement is expected to benefit that the Chinese will use U.S. tobacco in To promote tbe use of U.S. flue-cured to their cigarettes, it should be evident that our political relationships with PRC and the bacco in the PRC. objectives of U.S. overall foreign policy. Rat the Chinese must produce their tobaccos To gain an understanding of the tobacco more along the lines we do, with greater ification of this agreement with the MFN production, research, education, cultural status for PRC is essential to enhance ex att~ntion to quality in prOduction and proc practices, marketing. leaf processing, ciga panded trade between the PRC and the U.S. essing. Once they've done that, Pandora's rette manufacturing, and consumption in Box has been flung wide open. The delegation pointed out that the U.S. the PRC. tobacco industry and many other U.S. farm Let me now speculate as to how the To improve our understanding of the cul Chinese plan to accomplish all these things, organizations support MFN treatment for ture of the PRC. The Peoples Republic of China. courtesy of the American taxpayers and the To renew a personal relationship with a U.S. tobacco farmers. country that purchased significant amounts TOBACCO INDUSTRY First, on the promise of their intention of U.S. flue-cured tobacco some 50 years ago. (1) PRC is the largest producer of tobacco to purchase a brand new, completely set-up To actively support the private negotia in the world. In 1978, PRC produced a total cigarette factory from a U.S. company, the tions of U.S.-based tobacco companies and of 2.2 billion pounds, which included 1.3 bil Chinese intend to acquire the latest in the PRC. lion pounds of flue-cured. This compared tobacco production and handling technol with a total U.S. production of about 2 bil ogy-for free. After they have begun to HIGHLIGHTS OF THE TRADE MISSION ITINERARY lion pounds, which included about 1.2 bil improve the desirability of their leaf, they TO CHINA lion pounds of flue-cured leaf. Other produc plan to use the credits to purchase a factory. Conference with Minister Liang Lingquan tion of sun/ air-cured was 42 million pounds. Now, the Chinese factories use 35 percent of Ministry of Light Industry, Beijing. In addition, an unknown but significant more tobacco per cigarette than the new Conference with Vice-Minister Chen Jie of amount of sun cured is produced and con modern American manufacturing equipment. Ministry of Foreign Trade, Beijing. sumed on household plots. There are some They will be able to "save" this large amount Conference with Vice-Premier Kang Shien, experimental oriental plantings in Zhejaing of tobacco over what they currently use. Beijing. province. It was mentioned that there is Inasmuch as this tobacco must be of Welcome Banquet in The Great Hall. some N. Rustica in the PRC. enhanced quality to be used in the new Return Banquet in The Great Hall at (2) Officials of PRC have indicated an in machinery, it will be more desirable in the tended by U.S. Ambassador to PRC, Wood terest in U.S. tobacco and cigarettes. The export trade. To pay for the factory-that cock. PRC exports only about three percent of its is. to repay the loan from the U.S. tax Cultural Tours to the Forbidden City, crop. payers-they will place this 35 percent saved Great Wall, Ming Tombs, Summer Palace and (3) Since the U.S. resumed trade with PRC on the export market to earn the foreign numerous other important places of their about 8 years ago, the U.S. has exported exchange. culture such as the Yu Gardens and Handi about 3 million dollars' worth of flue-cured Such tobacco will displace U.S. tobacco craft Research Center in Shanghai. tobacco to PRC. now going into the world trade, so the U.S. Machinery E:hop in Shanghai. (4) The Peoples Republic of China is the tobacco farmer will pay, coming and going. Tobacco Research Institute at Yi Du. world's largest producer of cigarettes. In After the loan is paid off, the Chinese will ShiHiaZhung production brigade. 1978, the PRC produced about 740 billion have obtained a new factory and, more Leaf redrying plant at Wei Fang. pieces compared to 696 billion pieces pro importantly, the ability to duplicate the Cigarette manufacturing plant at Qlng duced in the U.S. Currently, PRC is unable technology and build new factories of their Dao. to supply enough cigarettes to meet demand. own; they will have gained the knowledge Cigarette factory No. 2 at Guangzhou. (5) The population of PRC is nearly 1 bil of how to better cultivate and handle the Commodity Fair at Guangzshou. lion people. Thus, the per capita consump tobacco they produce; and they will have Welcome by Reynolds in Hong Kong. tion of cigarettes is only about one-fourth established an export market to gain valu of the level in the U.S. able and essential foreign exchange to pay NATIONAL SITUATION (6) Foreign Blend cigarettes from 4 com for other purchases of technology-and it The Peoples Republic of China, PRC, was panies were observed in at least one retail won't have cost them a dime I formed in 1949 to consolidate power, restore outlet for purchase by tourists. Two u .s. order. eliminate unemployment, and elimi based companies had products in some of TOBACCO TRADE MISSION TO PEOPLES REPUBLIC nate starvation. Most of these problems have these outlets. OF CHINA been resolved. The PRC leadership is now (7) The tobacco industry is controlled by taking a more pragmatic approach to eco the following: INTRODUCTION nomic development through joint ventures China. National Light Industrial Products A delegation representing the U.S. Flue with private foreign firms, increased linkage Import/ Export Corporation-responsible for Cured Tobacco Industry conducted a Trade between returns to labor and productivity the manufacture of cigarettes both for local Mission to The Peoples Republic of China and some decentralization of management consumption a.nd for export. from November 1-14, 1979. The mission was authority. The leadership plans to modernize led by The Honorable James B. Hunt, Jr., China National Native Produce and Im this country and its one billion people by ports Leaf and Manufacturers-responsible Governor of North Carolina and long-time the year 2000. It is estimated that currently for the ordering of imported cigarettes. friend of the U.S. Tobacco Industry. The 315 million of the people are engaged in agri ( 8) Government-sponsored anti -smoking delegates represented a cross section of to culture and about two-thirds of the popula bacco interests anrt consisted of the people campaign was initiated in late July, 1979. A tion is directly dependent on agriculture. An report indicates a reduction has been on the following pages with a brief state objective is to shift some of these people ment about them and the period they were achieved in smoking in a middle school sur into industrial jobs. Per capita income in veyed; however, only a small number of wit-h the delegation in the PRC. 1978 was about $400 (U.S. dollars) in this The delegation was warmly received in adults have stopped smoking. School regu country of 29 provinces and about 50,000 lations published in 1979 by the Ministry of PRC; and we could not have been treated communes. any better during our visit. Countless people Education prohibit smoking and alcohol for in all walks of life were extremely cordial to There are many problems to be solved in middle school students. us at all times, and we are grateful for nu the PRC; however, longrun prospects for (9) At this time, PRC lacks sufficient for merous things done to make our visit such PRC success are bright for the simple reasons eign exchange to pay for its needs for U.S. a pleasant one. that this country has both a large populace tobacco or technology. (nearly one billion people) moving with con Official dialogue was extremely friendly STATUS as well as open. They gave prompt and ap cerned effort toward a common goal un parently honest answers to our many ques matched by any other major developing The level of development of the tobacco tlOns. country ahd large undeveloped natural re industry in China is generally sill)ilar to sources such as coal and oil. The delegation where the U.S. tobacco industry was some ORGANIZATION OF THE TRADE MISSION was impressed by our observation that every 30 to 40 years ago. Mr. Verne Strickland, WRAL-TV, Raleigh, one had a job even though often menial; A. Agronomic (based mainly on informa NC, originally conceived the Tobacco Trade neverthless, the people were enthusiastic tion collected at a production brigade in Mission and actively worked for more than a about their jobs. Shandong province where an estimated 20% year to organize it and gain permission from Last May, U.S. Commerce Secretary Jua of the tobacco is grown) . t.he PRC for the delegation to make the visit. nita Kreps visited PRC and the two nations 1. The Objective of grower efforts is to pro In the later stages. Governor Hunt. and his initiated a Trade Agreement that would give duce quantity rather than quality because May 2, 1980 CONGRESSIONAL -. RECORD-SENATE 9777 financially he has been. rewarded more for a. Haploidy breeding used another culture. cigarettes per .75 to .85 kilograms of tobacco. quantity than quality. b. Breeding. Expressed another way about 400 cigarettes 2. Labor Requirements-Work in the pro 1. Screening in greenhouse for alternate are being made per pound of tobacco (in duction is accomplished by hand methods host for TMW and CMV. take) as compared to more efficient opera including soil preparation. Total labor re 2 . They appear to use certain very old va tions where a~bout 600 cigarettes are made quirements are 3,600 hours per acre. rieties such as Gold Dollar, 400, 401, Hicks, per pound of tobacco (intake). 3. Varieties-Mammoths which have mul and Mammoth Gold in their work. Two of the major factors contributing to tiple leaf characteristics. c. Potassium Rates-greenhouse study at the low number of cigarettes per pound of 4. Irrigation-supplemental water is ap soil pH 5.5 and 8 .0 (no zero level of potas tobacco are related to improper temperature plied by surface irrigation normally 2 or 3 sium was included in the test). and moisture control during primary process times per season but some years 5 or 6 times. d. Bulk Curing-There was no plenum area ing of ·the leaf and cigarette manufacturing. Water sources are deep wells, ponds, and for the heated air to be released in. It appeared there were leaks in the primary canals. e. Cured Tobacco (cured in three days) conditioning chamber which resulted in a 5. Field plant populations: 9,000 to 12,000 quality was generally ver:~ poor. The leaves lack of a vacuum 1n these chambers. The plants per acre. were small and thin with c:·nsiderable im tobacco did not reecive proper conditioning. 6. Fertilizer: 7 to 10 tons/ A manure com maturity. They appeared to be from Mam Also, the temperature inside the chamber post; 90 to 150 lbs/ A soybean cake; 45 lbs/A moth plants. It appears only limitej usa was was far too hot. The tobacco coming from the (15-15-12) compressed fertilizer. being made of the seed they have of the nu chamber was so hot it could not be held in 7. Soil-fine textured glacier soils with pH merous U.S. flue-cured varieties planted dur one's hand. This high temperature probably of 7.5. ing the last 40 years. adversely affected the chemistry of the leaf 8. Insects: aphids, hornworms, and bud f. Practical or applied-type research ap- and helped promote the large amount of worms controlled chemically; however, the peared to receive limited emphasis. breakage of the tobacco that occurred there chemicals used could not be named. Horn g. Other stations. after. worms are partially controlled by hand. 1. Work on homogenized leaf. The large amount of heat in the leaf 9. Topping-button stage when plants are 2. Work with Turkish tobacco in Zhejiang caused it to dry quite rapidly, and the dry about 6 feet tall. Province south of Shanghai. ness contributed to the breaking in the 10. Suckering-by hand with some suckers c. Extension: threshing line. On the threshing line far too at the bottom and three in the top left for There appeared to be a wide gap between much lamina was being left on the stems; the sucker leaves which are harvested to in the research effort and any practical adop and when the stems were rolled, this proc crease yield. tion by growers. A workable mechanism to ess only pulverized this lamina contributing 11. Harvesting-the leaves (about 10) on transfer research information to production to the build-up of fines and dust. At the the lower part of the plant are not harvested. brigades and for growers to inform the re cutters the tobacco was far too dry. The next 30 to 4.0 leaves are harvested when searchers of their needs did not appear to The tobacco coming to the making ma they are light yellow with about 3 leaves re exist. chine was pressed too much and was lumpy; moved per harvest. Sucker leaves are har Because tobacco is in short supply and therefore, the feeders had to be set to cope vested. growers receive financial rewards to produce with this. If the tobaccos were not ever 12. Curing Cycle-three days and three quantity instead of quality, it would be dif pressed, a more consistent cigarette could nights with the tobacco being hung on sticks ficult for research and education programs tte manufactured. The tobacco appeared to in the barn immediately after harvesting and to function under these circumstances. lack the fluffiness desired to help achieve the fires started immediately. D. Machinery Factory Tour--shanghai: good filling capacity. The problem is related 13. Curing was done in conventional barns Equipment and replacement parts used in to the extremely high temperatures used with coal-fired furnaces and a closed flue leaf processing and cigarette manufacturing during primary processing. system. in PRC are manufactured by 1200 employees The deficiencies noted would prohibit the 14. Growth Cycle-4 months from trans in this well managed, efficient and large use of high speed cigarette machines. planting until harvest completed. facility. Other equipment such as sewing Some of the lack of efficiency is related to 15. Yield 2,600 to 3 ,300 lbs/A-Based on machines is also manufactured in the the low level of leaf quality generally ob the size of some tobacco stalks being used to Foundry, Machine, Assembly, and Wood served. fence in corn in a peasant's yard, the plants working workshops for domestic use and The age of the tobacco being blended WM had considerable growth. Others estimated export to 60 countries. unclear. A statement was made that the to the average yields at about 2,000 lbs. per acre. The facility had far more order and cleanli bacco was 1-3 years old. 16. Marketing Preparation--supposedly ness than comparable ones in the world. At the No. 2 Cigarette Factory in Canton, graded by quality in three stalk positions It was observed that the basic equip~ent 19 brands of cigarettes were being made that and seven grades. and capabilities were present to manufacture sold for 8 cents to 66 cents (U.S.) per pack 17. Diseases-Tobacco mosaic virus, Black anything 'in metal comparable to world with an average price of 35 cents (U.S.). shank, Brown Spot. leaders in this area. This is true even though Among the 19 brands were 3 brands such 18. Soil Conservation and Land Leveling they are 5 to 10 years behind on the use of as Star Lake, Orchid, and a medicinal cig Even though major land-leveling projects by tape-driven equipment. arette which contained 20 percent herbs for hand took place two to three thousand years Any cigarette manufacturing equipment asthma and bronchitis. They also made men ago, some fields are still being leveled by on the world market could be produced in thol cigarettes in this factory and had a hand. First, the topsoil is removed and stored the shops with appropriate license arrange smoking panel. Another export brand to be returned to the area after the soil ments. (Double Horse) made of flue-cured and Bur underneath is moved to a lower area or used E. Leaf Redrying: ley was manufactured at Qing Dao for ex to make brick. In very hilly land, terrace Cured leaf was purchased from the produc port to Romania and Hong Kong. farming is practiced. tion brigades in 150 pound bales. Tubes for The quality control of the packages in a B. Research (based mainly on a visit to a the in1ection of live steam were inserted into nearby printshop for the export cigarettes tobacco research institute at Yi Du Shan- the bales }ust before being placed in a con was observed to be very high. dong). ' ditioning chamber. It appears there was At the Qing Dao factory, 16 brands were be 1. This station had 211 staff members, and leakage in this chamber and the tempera ing manufactured with selling prices of 6 all of the staff we visited with were enthusi tures used were excessive. The tobaccos were cents to 84 cents (U.S.). It was stated that 4 astic. The head of the Institute is Prot·essor subject to such high temperatures it "killed brands constituted 50 percent of the pro Zhen Retai who graduated in Plant Pathol the tobacco" and decreased its later useful duction. ogy from Cornell University 35 years ago. ness. The bundles of tobacco were hung on G. Quality of Cured Leaf: The station is owned by the Academy or sticks to go through the conditioning Generally the quality of the PRC cured leaf Scien:::es of China and well-financed by the chambers. observed at a number of places was poor by Ministry of Agriculture. The presses used at the end of leaf process world standards. The leaves were small (8-12 2. Physical Resources: ing were outdated; and newer, more efficient inches long) and narrow (about 6 inches a . Greenhouses. ones would contribute favorably to this wide). extremely thin with no oil and consid b. Laboratories. operation. erable immaturity. Evidence was observed c. Cigarette-making machine (new baby F. Leaf Processing and Cigarette Manu of brown spot damage and physical in Hauna from West Germany). facturing: jury from chewing insects in the field and d. Cigarette-smoking machine (6 cigarette An outstanding job was being done in general handling. Tobacco with storage capacity). manufacturing products with equipment damage was often observed. e. Mineral analysis machine (flame meth that was a~b