June 15, 1982 CONGRESSIONAL RECORD-HOUSE 13621 HOUSE OF REPRESENTATIVES-Tuesday, June 15, 1982 The House met at 12 o'clock noon. FATHER ALBERT PALMER The SPEAKER. Is there objection The Reverend Albert Palmer, St.

D This symbol represents the time of day during the House proceedings, e.g., D 1407 is 2:07 p.m. e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. 13622 CONGRESSIONAL RECORD-HOUSE June 15, 1982 privilege, or status under the Immigration PROMOTING RECRUITMENT the $300 burial allowance for certain and Nationality Act. AND RETENTION OF VETER­ deceased veterans was terminated. The The bill was ordered to be engrossed ANS' ADMINISTRATION change in law did not affect the bene­ and read a third time, was read the NURSES fit for veterans who were drawing VA third time, and passed, and a motion of the Immigration The best equipped hospitals in the ing inquiries from various State offices and Nationality Act as it applied to Christi­ world would not be of much use with­ concerning these cases. Although we na Boltz Sidders prior to its repeal by the out skilled health care personnel. have confirmed that they do not exist Act of October 10, 1978. For these reasons, I recommend pas­ in large numbers, some action is none­ With the fallowing committee sage of H.R. 6350. theless warranted to make certain amendment: that no needy wartime veteran is Strike all after the enacting clause and UNITED STATES HAS MAJOR buried in a pauper's grave. I take the insert in lieu thereof: ROLE TO PLAY IN LEBANON time today to let you know that our That, for the purpose of the Immigration committee plans to take action to cor­ of such Act, upon approval of a of a riven and tortured Lebanon, an The SPEAKER. Is there objection petition filed in her behalf by Richard E. opportunity we must not fail to seize. to the request of the gentleman from and Vilma B. Novak, citizens of the United In the Extensions of Remarks in the Louisiana? States, pursuant to section 204 of such Act. RECORD, I am including two thoughtful Mr. CHENEY. Mr. Speaker, reserv­ The natural parents or brothers or sisters of articles which offer specific proposals ing the right to object, could I inquire Eun Ok Han shall not, by virtue of such re­ along the same lines. of the gentleman from Louisiana as to lationship, be accorded any right, privilege, what specific bills he is asking for late or status under the Immigration and Na­ filing? tionality Act. VETERANS' BURIAL BENEFITS Mr. LONG of Louisiana. There are The bill was ordered to be engrossed Regula the VA's health care delivery system due to Dicks Kastenmeier Reuss 1, 1986. Dingell Kazen Rhodes I have several large printing compa­ the acute shortage of nursing personnel. Dixon Kennelly Richmond nies in my 19th Congressional District The committee report further states Donnelly Kil dee Rinaldo of Pennsylvania-including Fairfield that: Dorgan Kindness Ritter Dougherty Kogovsek Roberts Graphics and the Maple Press-which The Veterans' Administration does not Downey Kramer Robinson could be adversely affected should this have the flexibility to compete with private Duncan LaFalce Rodino legislation fail to pass. In addition, my sector recruiting and retention methods. Dunn Latta Roe district is the home of P.H. Glatfelter Dwyer Leach Rogers Mr. Speaker, I intend to vote for Dymally Lehman Rose Co., a very large paper mill. I have re­ 6350, for it does indeed provide some Dyson Leland Rosenthal ceived a large volume of mail from the needed incentives that will make em­ Early Lent Rostenkowski employees of these companies, all con­ Eckart Levitas Roth ployment at the VA more competitive Edgar Lewis Roukema cerned over their job security should with the private sector. It is unfortu­ Edwards CAL> Long Rousselot the manufacturing clause expire on nate that what we may be giving with Edwards Long Roybal July 1. one hand may well be a less powerful Emerson Lott Rudd Mr. Speaker, we need to keep people Emery Lowery Russo incentive because of what we took English Lowry Sabo employed, not add to the unemploy­ away last year. Erdahl Lujan Sawyer ment rolls, and I do not feel that now Ertel Luken Schneider is the appropriate time to permit this Evans Lundine Schroeder provision of the copyright law to ANNOUNCEMENT BY THE Evans Markey Schulze Evans Marlenee Schumer lapse. We just cannot assume that SPEAKER Fary Marriott Seiberling American authors would continue to The SPEAKER. Pursuant to the Fascell Martin Sensenbrenner have their works printed and bound in Fazio Martin Shamansky provisions of clause 5, rule I, the Chair Fenwick Martin Shannon the United States, using American will now put the question on each Ferraro Matsui Sharp paper products and American labor. motion to suspend the rules on which Fiedler Mavroules Shaw Therefore, I would urge that my col­ further proceedings were postponed Fish Mazzoli Shelby leagues join me in passing this bill and Flippo Mcclory Shuster on Monday, June 14, 1982, in the order Florio Mccloskey Skeen protecting jobs related to the printing in which that motion was entertained. Foglietta McCoUum Skelton industry in our country. Votes will be taken in the following Foley Mccurdy Smith CIA> Ford McDade Smith order: Ford McEwen Smith RECRUITMENT AND RETENTION H.R. 6198, by the yeas and nays; and Fountain McGrath Smith CPA) OF VETERANS' ADMINISTRA­ H.R. 6350, by the yeas and nays. Fowler McHugh Sn owe Fuqua McKinney Snyder TION NURSES The Chair will reduce to 5 minutes Garcia Mica Solarz St Germain House for 1 minute and to revise and Gilman Miller Stangeland extend his remarks.) COPYRIGHT MANUFACTURING Gingrich Mineta Stanton Mr. WILLIAM J. COYNE. Mr. CLAUSE PROTECTION ACT Gonzalez Minish Stark Speaker, as we vote today on H.R. Goodling Mitchell Staton The SPEAKER pro tempore. Stenholm 6350, a measure which seeks to make Gray Moakley Stokes the Veterans' Administration more ALEXANDER). The unfinished business Green Molinari Stratton competitive with the private sector in is the question of suspending the rules Gregg Montgomery Studds and passing the bill, H.R. 6198. Grisham Moorhead Swift the employment of nurses, I would Guarini Mottl Synar remind my colleagues that this House The Clerk read the title of the bill. Gunderson Murphy Tauzin approved a measure last year which The SPEAKER pro tempore. The Hagedorn Murtha Taylor question is on the motion offered by Hall Myers Traxler had just the opposite result. Hall, Ralph Napier Udall When the House approved H.R. 3499 the gentleman from Wisconsin Nichols Washington tirement benefits. Since this measure dered. Harkin Nowak Waxman became law in November 1981 the The vote was taken by electronic Hawkins O'Brien Weaver device and there were-yeas 339, nays Heckler Oakar Weber morale of VA nurses, especially those Hefner Oberstar Weiss who face less-than-expected retire­ 47, answered "present" 2, not voting Heftel Obey White ment benefits as a result of the ret­ 44, as follows: Hendon Ottinger Whitehurst [Roll No. 1431 Hightower Oxley Whitley roactivity clause, has been lowered. It Hillis Panetta Whittaker is easy to understand why. Many saw YEAS-339 Holland Parris Whitten the ability to receive full-time retire­ Addabbo Biaggi Clausen Hollenbeck Pashayan Williams ment for part-time work as an impor­ Albosta Bingham Coelho Holt Patman Williams Alexander Bliley Coleman Hopkins Patterson Wilson tant incentive to stay on at the VA. Anderson Boggs Collins CIL) Horton Pease Winn Furthermore, the shock of seeing an­ Andrews Boland Collins Howard Pepper Wirth ticipated benefits reduced retroactive­ Annunzio Boner Conyers Hoyer Perkins Wolf Anthony Boni or Corcoran Hubbard Petri Wolpe ly by Congress encourages experienced Applegate Bonker Coughlin Huckaby Peyser Wortley nurses to leave VA employ. Aspin Bouquard Courter Hughes Pickle Wright The need to keep these nurses em­ Atkinson Bowen Coyne, William Hunter Porter Wyden ployed by the VA is clear. As the Vet­ Bafalis Breaux Craig Hutto Price Wylie Bailey Brinkley Crane, Daniel Hyde Pritchard Yates erans' Affairs Committee report on Barnard Brodhead Crockett Ireland Quillen Yatron H.R. 6350 notes: Barnes Brooks Daniel, Dan Jacobs Rahall Young The Veterans' Administration Depart­ Beard Broyhill Daniel, R. W. Jeffords Railsback Young(FL) ment of Medicine and Surgery continues to Bedell Burton, Phillip Daschle Jenkins Rangel YoungCMO) Benedict Butler Daub Jones Ratchford Zeferetti experience difficulties in recruiting and re­ Benjamin Byron Davis taining sufficient nursing personnel to pro­ Bennett Carman de la Garza NAYS-47 vide quality hospital care and medical serv­ Bereuter Carney Deckard Archer Beilenson Burgener ices to eligible veterans. The Chief Medical Bethune Chappell Dellums Badham Brown Cheney Director has confirmed that an estimated Bevill Chisholm DeNardis June 15, 1982 CONGRESSIONAL RECORD-HOUSE 13625 Clinger Gradison McDonald The Chair will remind the Members Neal Rose Stratton Coats Gramm Moore Nelligan Rosenthal Studds Conable Hansen CID> Paul that this will be a 5-minute vote. Nelson Rostenkowski Stump Crane, Philip Hartnett Roberts The vote was taken by electronic Nichols Roth Swift Dannemeyer Hiler Roemer device, and there were-yeas 390, nays Nowak Roukema Synar Derwinski Jeffries Shumway O'Brien Rousselot Tauke Dreier Kemp Siljander 0, not voting 42, as follows: Oakar Roybal Tauzin Edwards Lagomarsino Smith [Roll No. 1441 Oberstar Rudd Taylor Erlenborn Leath Stump Obey Russo Thomas Fields LeBoutillier Tauke YEAS-390 Ottinger Sabo Traxler Findley Lee Thomas Addabbo Dougherty Hubbard Oxley Sawyer Udall Forsythe Livingston Vander Jagt Albosta Dreier Huckaby Panetta Schneider VanderJagt Frenzel Loeffler Weber Alexander Duncan Hughes Parris Schroeder Vento Glickman Lungren Anderson Dunn Hunter Pashayan Schulze Volkmer Andrews Dwyer Hutto Patman Schumer Walgren ANSWERED "PRESENT"-2 Annunzio Dymally Hyde Patterson Seiberling Walker Brown Johnston Anthony Dyson Ireland Paul Sensenbrenner Washington Applegate Early Jacobs Pease Shamansky Waxman NOT VOTING-44 Archer Eckart Jeffords Pepper Shannon Weaver Akaka Dornan Mattox Asp in Edgar Jeffries Perkins Sharp Weber Au Coin Dowdy Moffett Atkinson Edwards Jenkins Petri Shaw WeberCOH> Bailey CMO> Evans Mollohan Badham Edwards COK> Johnston Peyser Shelby Weiss Blanchard Fithian Morrison Bafalis Emerson Jones Pickle Shumway White Bolling Frank Pursell Bailey CPA> Emery Jones Porter Shuster Whitehurst Broomfield Frost Santini Barnard English Kastenmeier Price Siljander Whitley Brown CCA> Gephardt Savage Barnes Erdahl Kazen Pritchard Skeen Whittaker Burton, John Ginn Scheuer Beard Erlenborn Kemp Quillen Skelton Whitten Campbell Goldwater Simon Bedell Ertel Kennelly Rahall Smith CIA> Williams CMT> Chappie Hatcher Smith CAL> Beilenson Evans Kildee Railsback Smith WilliamsCOH> Clay Hertel Trible Benedict Evans CGA> Kindness Rangel Smith Wilson Conte Jones CTN> Wampler Benjamin Evans CIA> Kogovsek Ratchford SmithCOR> Winn Coyne, James Lantos Watkins Bennett Fary Kramer Regula Smith CPA> Wirth D'Amours Madigan Zablocki Bereuter Fascell LaFalce Reuss Snowe Wolf Derrick Marks Bethune Fazio Lagomarsino Rhodes Snyder Wolpe Bevill Fenwick Latta Richmond Solarz Wortley D 1230 Biaggi Ferraro Leach Rinaldo Solomon Wright Bingham Fiedler Leath Ritter Spence Wyden Messrs. BADHAM, VANDERJAGT, Billey Fields LeBoutillier Roberts CKS> St Germain Wylie EDWARDS of Oklahoma, SILJAN­ Boggs Findley Lee Roberts Stangeland Yates DER, HILER, KEMP, and FINDLEY Boner Fish Lehman Robinson Stanton Yatron Bonior Flippo Leland Rodino Stark YoungCAK> changed their votes from "yea" to Bonker Florio Lent Roe Staton YoungCFL> "nay." Bouquard Foglietta Levitas Roemer Stenholm YoungCMO> Messrs. SHUSTER, DINGELL, Bowen Foley Lewis Rogers Stokes Zeferetti Breaux Ford Livingston DANIEL B. CRANE, and COLLINS of Brinkley Ford CTN> Loeffler NOT VOTING-:--42 Texas changed their votes from "nay" Brodhead Forsythe Long Akaka Derrick Marks to "yea." Brooks Fountain Long AuCoin Dowdy Mattox Mr. BROWN of Ohio and Mr. BrownCCO> Fowler Lott BaileyCMO> Downey Moffett JOHNSTON changed their votes from BrownCOH> Frenzel Lowery Blanchard Edwards Mollohan Broyhill Fuqua Lowry Boland Evans CIN) Pursell "yea" to "present." Burgener Garcia Lujan Bolling Fithian Santini So Frost Scheuer Byron Gephardt Lungren Burton, John Ginn Simon the bill was passed. Campbell Gibbons Madigan Chappie Goldwater Smith CAL> The result of the vote was an­ Carman Gilman Markey Clay Hatcher Trible nounced as above recorded. Carney Gingrich Marlenee Conte Hertel Wampler A motion to reconsider was laid on Chappell Glickman Marriott Coyne, James Jones Watkins Cheney Gonzalez Martin D'Amours Lantos Zablocki the table. Chisholm Goodling Martin Clausen Gore Martin CNY> D 1245 Clinger Gradison Matsui PERSONAL EXPLANATION Coats Gramm Mavroules So Gregg McCloskey voted "present" due to a conflict of in­ Collins Grisham McCollum The result of the vote was an­ terest. Conable Guarini Mccurdy nounced as above recorded. Conyers Gunderson McDade A motion to reconsider was laid on The SPEAKER pro tempore. The Corcoran Hagedorn McDonald gentleman's statement will appear in Coughlin Hall COH> McEwen the table. the RECORD. Courter Hall, Ralph McGrath Coyne, William Hall, Sam McHugh Craig Hamilton McKinney PERMISSION FOR SUBCOMMIT­ Crane, Daniel Hammerschmidt Mica TEE ON MERCHANT MARINE PROMOTING RECRUITMENT Crane, Philip Hance Michel AND RETENTION OF VETER­ Crockett Hansen CID> Mikulski OF COMMITTEE ON MER­ ANS' ADMINISTRATION Daniel, Dan Hansen CUT> Miller CCA> CHANT MARINE AND FISHER­ NURSES Daniel, R. W. Harkin Miller COH> IES TO SIT TOMORROW Dannemeyer Hartnett Mineta DURING 5-MINUTE RULE The SPEAKER pro tempore. The Daschle Hawkins Minish unfinished business is the question of Daub Heckler Mitchell Mr. BIAGGI. Mr. Speaker, I ask Davis Hefner Mitchell unanimous consent that the Subcom­ suspending the rules and passing the de la Garza Heftel Moakley bill, H.R. 6350. Deckard Hendon Molinari mittee on Merchant Marine of the The Clerk read the title of the bill. Dellurns Hightower Montgomery Committee on Merchant Marine and The SPEAKER pro tempore. The DeNardis Hiler Moore Fisheries be permitted to sit on Derwinski Hillis Moorhead question is on the motion offered by Dickinson Holland Morrison Wednesday, June 16, 1982, during the the gentleman from Mississippi . lomatic personnel and missions have the Treasury Department. reached tragic and ominous propor­ Our Treasury Appropriations Sub­ Mr. BIAGGI. Mr. Speaker, I rise in tions. committee held hearings just a couple support of the rule and bill and take Protection of the diplomatic commu­ this opportunity to commend my col­ of weeks ago on this issue. I asked league, the gentleman from New York nity is a reciprocal responsibility whether the same level of protection among nations. The U.S. Government could be provided at less cost by Treas­

89-059 0-86-29 (Pt. 10) 13630 CONGRESSIONAL RECORD-HOUSE June 15, 1982 and $14 million in each subsequent cities and provides for the Federal Mr. MOLINARI. Mr. Chairman, I year, far above the cost of this bill. Government to share some of that thank the gentleman from Minnesota. Robert McBrien, the Treasury's spe­ burden. Mr. Chairman, I would like to ask cial assistant in charge of reviewing re­ I stress that the city of New York is the gentleman from Minnesota a imbursements to New York, stated reimbursed only for extraordinary couple questions. that, "If there were a choice between protective measures and is required Mr. STANGELAND. I would be reimbursing the city and sending Fed­ like any other major city to provide happy to answer. eral forces, our choice is reimburse the ordinary protective services to the dip­ city." Mr. McBrien went on to say that Mr. MOLINARI. Would the gentle­ lomatic community. man from Minnesota explain, if he even if 400 Federal agents were perma­ What this legislation does is recog­ nently deployed in New York City, the would-there seems to have been some nize the reality of increase security confusion about an alternate bill, that Federal Government would still have threats to foreign diplomats and mis­ to reimburse the city for use of city the Secretary of State was going to sions by providing for the necessary submit a separate bill providing for police in any large-scale operation resources to meet the increased need. such as the protection of a head of protection of foreign missions. Cou1 d Since December 1979, there have been the gentleman clear that question up state, security along the route of a mo­ 23 terrorist bombings in New York torcade carrying controversial diplo­ for us? City associated with diplomatic prop­ The CHAIRMAN. The time of the mats, and at 24-hour guard posts erty. In five cases, the bombs were re­ around threatened missions. gentleman from New York has ex­ moved prior to detonation. During pired. The fundamental issue addressed in 1981, the police department main­ this bill is that the Federal Govern­ tained fixed-post coverage at 54 diplo­ ~· STANGELAND. Mr. Chairman, ment has recognized its obligation to matic locations. In the same year, I yield the gentleman 2 additonal min­ provide protection to foreign diplo­ there were 16 visits to New York by 13 utes. mats and has delegated that responsi­ foreign dignitaries that required spe­ Well, to answer the gentleman, first bility to the city of New York without cial security measures. of all, there is no alternative bill to providing sufficient funding to cover Let me briefly mention the diplo­ H.R. 6254. The State Department has the city's necessary efforts. H.R. 6254 matic protection arrangement here in submitted to OMB and OMB has merely removes the inconsistency of the District of Columbia, since this is cleared and is sending to the Speaker Congress recognizing a legitimate and the only other American city that has legislation that would permit the Sec­ necessary Federal expense but not a security situation resembling that of retary to reimburse State and local au­ paying for it. It also has the very New York. thorities only for extraordinary securi­ pleasant side effect of saving the Fed­ At present, the District assumes part ty functions and only with respect to eral Government money. I urge my certain security functions. It would be fell ow Members to support H.R. 6254. of the responsibility for diplomatic protection. The Federal Government limited to those functions that would Mr. STANGELAND. Mr. Chairman, be agreed to in advance. It would I yield 5 minutes to the gentleman assumes a large part because of the presence of the uniformed division of apply to consular offices. H.R. 6254 from New York (Mr. MOLINARI). ~oes not apply to consular offices, but Mr. MOLINARI. Mr. Chairman, I the Secret Service in the District. The it applies to missions, missions that rise in support of the bill and would division works in tandem with the Dis­ are associated with the United Na­ like to make a few brief comments on trict police on diplomatic protection tions. the scope and purpose of the legisla­ and the financial burden is shared. It has been determined that putting Similarly, this proposed legislation tion. that the State Department has sub­ I think it is important that it is a contingent of uniformed Secret Serv­ ice agents in New York would be more mitted does not cover U.N. missions, made clear that this bill does nothing and so I, too, want to clear that up, to change the basic principles of local costly than having the New York Police Department provide protective that there is no alternative legislation responsibility for the protection of for­ at this time to H.R. 6254. eign missions and diplomatic person­ services and be reimbursed by the Fed­ eral Government. Mr. MOLINARI. I thank the gentle­ nel which ha've been a part of U.S. law man. I have one further question. for the past 6% 'years. Routine or ordi­ Many Members might have heard of nary diplomatic protection functions a forthcoming State Department pro­ We have heard mentioned on the are currently and will continue to be posal that will deal with diplomatic floor today that the administration provided for by local governments, in­ protection. Some have suggested that opposes this legislation. Does the gen­ cluding New York City. "Existing" we should delay consideration of this tleman know whether that is so? law-and I emphasize existing-now bill until the proposal is released. In Mr. STANGELAND. Well, I am provides that the Federal Government fact, I am told by the State Depart­ under the impression or the belief can reimburse State and local govern­ ment that the proposal as it now that the administration does oppose ments for services provided in connec­ stands would enable the Secretary of the legislation; but let me say that the tion with an extraordinary protective State to provide reimbursements to subcommittee and the committee took need that arises in association with a State and local governments in addi­ this under advisement at great length visit to or occurs at a permanent mis­ tion to New York for extraordinary and in the hearings that were held in sion to an international organization diplomatic protection services. There­ New York on May 7th and the subse­ of which the United States is a fore, the proposal endorses the princi­ quent hearings here. It was the con­ member. The law specifies that only ples behind the current law and can sensus, bipartisan support, that if we extraordinary protective services are only be seen as recognizing the need owe an obligation or a debt to New eligible for reimbursement and the for the Federal Government to play a York City or a bill to New York City, Treasury Department reviews each re­ role in diplomatic protection efforts. that bill ought to be paid. quest thoroughly. In conclusion, Mr. Chairman, we As I said in my opening remarks, the Present law, therefore, recognizes cannot ignore the increasing threats Secretary of the Treasury has verified that the presence of the United Na­ to foreign diplomats on American soil $13 million in legitimate expenses that tions headquarters in c~ew York and and the additional extraordinary pro­ are reimbursable, that have not been the resulting diplomatic traffic to and tective services required to protect reimbursed. from the headquarters place::> addition­ them as a part of our national obliga­ It is the contention of the subcom­ al security burdens on the police de­ tion. I urge my colleagues to recognize mittee and the contention of the full partment of the city of New York this as a national responsibility and committee that these debts ought to beyond that required of other U.S. vote in favor of this bill. be paid and they ought to be paid now. June 15, 1982 CONGRESSIONAL RECORD-HOUSE 13631 Mr. MOLINARI. Would the gentle­ cent. Congress then decided this proportion Marine Corps detachment to protect man know what the approximate cost was askew, which it surely was, and cut back our U.S. Embassy people at the U.N. was to the New York City Police De­ to 25 percent at that time. Throughout this period, the Soviet Union Therefore, I would say to all of my partment? and two of its republics had three votes in conservative colleagues who may be The CHAIRMAN. The time of the the General Assembly to one for the United prone to oppose this legislation to vote gentleman from New York has again States. The three Soviet members kick in 13 for it because Members are not voting expired. percent of the U.N. funds, a hair more than to supply moneys for the U.N.; you are Mr. STANGELAND. Mr. Chairman, half of the American contribution. voting to reimburse New York City for I yield the gentleman an additional 30 A lack of influence in relation to dollars is not the only thing we should think about. those expenditures incurred for police seconds. protection. Mr. MOLINARI. Would the gentle­ Where those dollars go is something we should examine carefully. For instance, I think it is vitally needed. I would man know what the cost to New York nearly 30 United Nations officials get sala­ City was when Pope John Paul visited say if the legislation does pass, I will ries of more than $100,000 a year. And that use whatever influence I have with New York City in 1979? fleet of limousines on the East River is not Mr. STANGELAND. I do not have the cheapest mode of travel. the White House to see that they sign that exact figure, I am sorry. It was an America's $1 billion supports dozens of this legislation into law. extensive cost. • global organizations. Many must be worth- Mr. FARY. Mr. Chairman, I yield Mr. MOLINARI. Well, would the They say in this editorial, and I dis­ such time as he may consume to the chairman of the committee yield? agree- gentleman from Georgia be a different interpretation from easier for the agency charged with section 202<7> of title 3, United States what the gentleman has heard during this responsibility, namely, the Secret Code, is amended by inserting "may be pro­ the course of this debate. Perhaps it Service Uniformed Division, to achieve vided for motorcades and at other places as­ was unhappily expressed in the report this goal. By raising the amount au­ sociated with such a visit and" after "pro­ language. thorized to be appropriated for reim­ tection". The fact of the matter is that at the (b) Section 208(b) of title 3, United States bursement to State and local govern­ Code, is amended to read as follows: time in question there were approxi­ ments for protection services from $3.5 "(b) There is authorized to be appropri­ mately $19, 776,000 of submitted to $7 million annually, and by provid­ ated, in addition to such sums as have been claims. Of that amount, only $13 mil­ ing for the liquidation of $17.7 million heretofore appropriated under this sec­ lion, approximately, were accepted by in outstanding claims, this legislation tion- the Treasury Department. As the gen­ provides for the continued security of " of House will do likewise.• the first section of this Act may be made ury Department, and subsequently re­ e Mr. DERWINSKI. Mr. Chairman, I available for use or obligation prior to Octo­ viewed by the subcommittee. So, it is believe H.R. 6254 is the wrong vehicle ber 1, 1982. and is based on the wrong reasons for not just a sort of revenue-sharing Mr. FARY (during the reading). Mr. grant program in any sense. It is an solving the problem of protecting for­ obligation which the U.S. Government eign diplomats in the United States. Chairman, I ask unanimous consent itself would have had to undertake at It certainly is our responsibility to that the committee amendment in the provide security for diplomats from nature of a substitute be considered as a much greater cost if it were not han­ read, printed in the RECORD, and open dled in this manner. other countries serving in the United e Mr. HOWARD. Mr. Chairman, I rise States. We have a special responsibil­ to amendment at any point. in support of H.R. 6254, legislation ity with the rise in terrorism which The CHAIRMAN. Is there objection which would permit increased Federal threatens diplomats throughout the on the request of the gentleman from reimbursement to State and local gov­ world. We must accept this responsi­ Illinois? ernments for the costs of protecting bility just as we expect other countries There was no objection. foreign diplomatic missions and visit­ to accept the responsibility of protect­ AMENDMENT OFFERED BY MR. SOLOMON ing foreign dignitaries. ing American diplomats on their soil. Mr. SOLOMON. Mr. Chairman, I Mr. Chairman, at this time I would While commending that purpose, I offer an amendment. like to commend the gentleman from do not support the inclusion in this The Clerk read as follows: Illinois Hawkins Savage The SPEAKER pro tempore. Under McHugh Rahall Stark Burton, John Hertel Scheuer McKinney Railsback Stokes Clay Holt Simon the rule, the previous question is or­ Mica Rangel Stratton Conte Jones CTN> Smith CAL> dered. Mikulski Ratchford Studds Coyne, James Lantos Wilson Is a separate vote demanded on the Miller Reuss Swift D'Amours Marks Zablocki Mineta Rhodes Synar Dowdy Mattox amendment to the committee amend­ Minish Rinaldo Thomas Evans Mavroules ment in the nature of a substitute Mitchell Rodino Traxler adopted by the Committee of the· Mitchell CNY) Roe Udall 0 1430 Moakley Rose Vento Whole? If not, the question is on the Molinari Rosenthal Walgren Messrs. CORCORAN, HANCE, amendment. Mollohan Rostenkowski Washington LOTT, MARRIOTT, and SMITH of The amendment was agreed to. Murtha Roukema Waxman Napier Roybal Weiss Iowa changed their votes from "yea" 0 1415 Natcher Sabo White to "nay." Neal Sawyer Whitley So the bill was passed. The SPEAKER pro tempore. The Nichols Schneider Williams The result of the vote was an­ question is on the engrossment and Nowak Schumer Wirth O'Brien Seiberling Wolpe nounced as above recorded. third reading of the bill. Oakar Shamansky Wortley A motion to reconsider was laid on The bill was ordered to be engrossed Oberstar Shannon Wright the table. and read a third time, and was read Ottinger Shaw Yates the third time. Panetta Shuster Yatron Patterson Smith The SPEAKER pro tempore. The Pease Smith absent Members. Bliley Hansen Roberts Robinson The vote was taken by electronic Bouquard Hartnett Roemer COMMUNICATION NO. 3985, device, and there were-yeas 218, nays Breaux Hendon Rogers FINAL REGULATIONS FOR COL­ 177, not voting 37, as follows: Brown Cheney Jenkins Shelby mittee on Education and Labor, May Annunzio Dorgan Harkin Coats Johnston Shumway Aspin Doman Heckler Coelho Jones Siljander 21, 1982, be referred to the Committee Atkinson Dougherty Hefner Collins Kazen Skeen on Banking, Finance and Urban Af­ Bailey CPA) Downey Heftel Corcoran Kindness Skelton fairs. Barnes Dunn Hightower Coughlin Lagomarsino Smith The SPEAKER pro tempore. Is Bedell Dwyer Holland Courter Latta Smith Beilenson Dymally Hollenbeck Craig Leath Smith there objection to the request of the Bennett Early Horton Crane, Daniel Lee Snyder gentleman from Kentucky? Bevill Eckart Howard Crane, Philip Loeffler Spence There was no objection. Biaggi Edgar Hoyer Daniel, Dan Lott Staton Bingham Edwards Huckaby Daniel, R. W. Lowery Stenholm Boggs Edwards Hughes Dannemeyer Lujan Stump Boland Erdahl Hunter Daub Lungren Tauke A BILLION FOR THE UNITED Bonior Ertel Hyde Davis Madigan Tauzin NATIONS Bonker Evans Vander Jagt given permission to address the House Brodhead Fazio Kemp Dyson Martin Mcclory Walker Burton, Phillip Fiedler Kildee Emerson McCollum Wampler his remarks and include extraneous Carman Fish Kogovsek Emery Mccurdy Watkins matter.) Camey Flippo Kramer English McDonald Weaver Mr. SOLOMON. Mr. Speaker, today Chisholm Florio LaFalce Erlenbom McEwen Weber Clausen Foglietta Leach Evans Michel Weber we will be asked to authorize Federal Clinger Foley LeBoutillier Evans Miller Whitehurst money to reimburse New York City Coleman Ford Ford Leland Fields Moore Whitten the United Nations. Conable Forsythe Lent Findley Moorhead Williams Conyers Fountain Levitas Frenzel Morrison Winn Now I am all in favor of protecting Coyne, William Fowler Lewis Fuqua Mottl Wolf foreign dignitaries when they visit the Crockett Frank Livingston Gaydos Murphy Wyden United States and I support the con­ Daschle Frost Long Gephardt Myers Wylie de la Garza Garcia LongCMD) Gingrich Nelligan Young cept of nations meeting to settle their Deckard Gejdenson LowryCWA) Glickman Nelson Young differences peacefully. But we must Dellums Gibbons Luken wonder if we are getting our money's DeNardis Gilman Lundine NOT VOTING-37 Derrick Gore Markey worth out of the United Nations. We Dickinson Gray Martin Andrews Au Coin Bailey pay over $1 billion a year to the June 15, 1982 CONGRESSIONAL RECORD-HOUSE 13639 United Nations, not including police Mr. DENARDIS. Mr. Speaker, I cent more construction jobs than does protection, and for our money we re­ think we could all use some good news demolition and new construction. And ceive continuous anti-American rheto­ about the effects of the economic pro­ more jobs mean more people with ric from the Communist countries and gram we passed last year. At that time, money to spend in shops, restaurants, their client states. as we debated the Economic Recovery theaters. In short, the new investment The United Nations also provides a Tax Act of 1981, we Congressmen who tax credits for building rehabilitation convenient cover for foreign agents represent districts containing older is playing an important role in New who steal our country's secrets under cities argued strongly for the preserva­ Haven's return to vitality and prosper­ the protection of diplomatic immuni­ tion and expansion of investment tax ity. Nor is my district the exception. ty. credit for the rehabilitation of com­ Thanks in large part to the new tax Congress should scrutinize every mercial and industrial buildings, as set credit, the expression "aging city" will cent it authorizes, especially now with forth in the Revenue Act of 1978. For soon no longer apply to many long-es­ the Federal budget deficit soaring out nearly three decades, Federal law had tablished urban areas of the Northeast of sight. The United Nations budget favored the construction of new build­ and Midwest. They will instead be should be treated like every other ap­ ings over the rehabilitation of older called rejuvenating cities. propriation. ones. This bias, combined with the I would like to call attention to an availability elsewhere of better trans­ editorial that ran yesterday in the Ala­ portation and communication systems, MASSIVE STEEL SUBSIDIES CALL bany Times Union. It makes some very lower property taxes, more plentiful FOR LEGISLATION perceptive points about the state of af­ land, and other attractions, provided The SPEAKER pro tempore. Under fairs at the United Nations and I com­ strong incentive for firms to leave the a previous order of the House, the gen­ mend it to your reading. cities, taking jobs and revenue with tleman from Pennsylvania

' 13642 CONGRESSIONAL RECORD-HOUSE June 15, 1982 point out to the whole world those At this time, it is my personal privi­ Mr. GAYDOS. I want to t{lank my countries that are not adhering to the lege to yield to a very active member colleague from Pennsylvania. international trade law; those who of the executive committee, the gen­ Mr. REGULA. Mr. Speaker, will the practice their little tricks and their de­ tleman from Pennsylvania

Federal tax revenues rose by 15.8% in 1981- April 1982, most indexes of commodity FOUNDERS OF MONETARISM far more than the incomes of taxpayers. prices were at least 15-20 percent lower Marginal tax rates are still going up, not It can, of course, be argued that what we than a year before. Cotton was down about are experiencing is not genuine monetarism. down. 1 Does anyone really believe that the 2.5 percent-the same as in 1932-aluminum economy would have performed better if When reality fails to live up to the promise prices were down even more. Even the broad of theory, it is always the fault of reality. the tax collector had grabbed an even larger indexes of producer and consumer prices share? Nondefense spending will be at least Since October 1979, when the Fed did most had posted some monthly declines. Even as of what the monetarists advised, interest 17.4 percent of GNP in fiscal 1982, up from the old guard was chanting that budget 15.9 percent in 1979. Would anyone serious­ rates, M, and the economy have gyrated deficits cause inflation, inflation again went wildly. The monetarist response is that the ly argue that recession could have been way down as the deficit went up-just as in avoided if the O.M.B. had only let federal problem originated with lagged reserve re­ 1975, or 1933. quirements in 1968, or the Fed should have spending drift even higher? Yet even falling prices fail to persuade No, the problem is monetary, not fiscal. stepped even harder and faster on monthly bond buyers that they will not be exploited ups and downs of M, wanted to increase the comparison with the more fundamental con­ then by the amount of the deficit." The money supply at a 20 percent rate for at ceptual problems associated with measuring budget could be balanced over the cycle, or least six months in late 1976. 11 money. To what extent are household lead to " a deficit sufficient to provide some "The year 1973," notes Robert Gordon, money market mutual fund shares transac­ specified secular increase in the quantity of "represented the high-water mark of mone­ tion or savings balances? Are institutional money." tarism."12 By then, all of the old-fashioned holdings of overnight RPs or overnight Eur­ Some might worry, said Professor Fried­ obstacles to scientific demand management odollars transaction balances since they are man, that "explicit control of the quantity had been toppled. The U.S. took the silver available each morning for spending? Are of money by government and explicit cre­ out of coins in 1964, lifted the gold cover on institutional holdings of marketable and ation of money to meet actual government Federal Reserve notes in 1965, set the gold highly liquid short-term credit instruments deficits may establish a climate favorable to price free in March 1968, reneged on con­ such as Treasury bills, certificates of depos­ irresponsible government action and to in­ verting foreign dollars into gold on August it, and banker's acceptances so easily con­ flation." "This danger," he added, "can 15, 1971, and officially embraced floating ex­ vertible into transaction balances that they probably be avoided only by moving in a change rates in March 1973. should be so treated? If we exclude them completely different direction, namely, The monetarists cheered. They had pro­ from transaction measures, such as M,, are toward an entirely metallic currency, elimi­ vided the intellectual rationale for the dem­ we missing a large and important source of nation of any governmental control of the olition of all institutional constraints on corporate liquidity? And why should hold­ quantity of money, and the re-enthrone­ monetary policy. There was a promise to re­ ings of Treasury bills, which are more liquid ment of the principle of a balanced place the old rules with new rules, but it has than CDs, be included in L, while CDs are budget." 6 By implication, that was still not happened. What happened is that rules included in M.? The questions go on and on, beyond "intelligent dispute". Needless to were replaced by random whim. and few of them can be answered unambig­ say, the nation did not move in the latter di­ Henry Simons was right in 1936 to prefer uously. The questions linger, and the qual­ rection, nor did Friedman ever really advise rules to discretion, but wrong to propose an ity of virtually any definition of money re­ it to do so. alternative that could only work if flows of mains uncertain. In this context, the redef­ By 1962, in the magnificent Capitalism money and credit could somehow be tightly initions are minor refinements in the hope­ and Freedom, budget deficits no longer regulated. lessly difficult task of measuring money." worked to stabilize demand. The task had "The defects of monetarism," writes These sorts of doubts have often marked become one of steering between the Scylla Samuel Brittain, "are that it concedes too the beginning of the end of confidence that of a gold standard and the Charybdis of much power to official intervention, under­ controlling some arbitrary measure of wide discretionary powers. Professor Fried­ rates the influence of competition in provid­ money is a practical way to ensure its value. man initiated the caricature of an "honest­ ing money substitutes, and takes official sta­ At the end of 1975, I wrote a paper for to-goodness gold standard in which 100 per­ tistics far too much at their face value. Argus Research on "The Increasing Irrele­ cent of the money consisted literally of Friedmanites are often very good at analyz­ vance of M,." In 1979, when some prominent gold." Since that sort of standard is indeed ing how controls and regulations in the monetarists were saying that money growth ridiculous. Friedman instead suggested rais­ economy generally will be avoided or will was too slow, I wrote depends on the went from 9 percent on September 14, 1979 cessation of gold payments did not suffice to rate of growth of money plus velocity lower substantially the international pur­ . Converting the old quantity equation to 12.3 percent in five months. chasing power of the dollar I would recom­ into annual percentage increases, then Now, there is no question that high inter­ mend its accompaniment by increased gov­ M±V=GNP. est rates can drive money out of M, and ernment expenditures financed by the If we could count and control M, and if we bank reserves, but that also raises velocity. printing press." 9 could predict velocity, then we would reach At high interest rates there is a powerful in­ When the term "monetarism" was coined the Keynesian heaven of managing "aggre­ centive to keep as little money as possible in by Karl Brunner in 1968, it represented a gate demand." And if we could also predict M, deposits, which pay little or no interest. healthy backlash against the excesses of how much of that rise in GNP would be real Banks have an equally powerful incentive to fiscal fine tuning. Yet monetarism too was growth and how much would be inflation, use "liability management" to make the part of the Keynesian tradition of demand then we could use all this to "control" infla­ most loans with the least required reserves, management. The tools would be different, tion. The only trouble is that nobody can do since reserves at the Fed earn no interest.16 but the objective was still to manage the any of those things. Even if anyone could, Money market funds have been more than rate of growth of aggregate demand, wheth­ there is no reason to suppose that these de­ doubling in size each year and, at about er over short or longer periods of time. vices would actually be used to avoid infla­ $160 billion, are much larger than the entire Early monetarists were often quite activist tion or deflation. stock of currency. You can write checks on demand-siders. John Culbertson, in 1964, Basically, the goal of managed money is to most of these funds, or transfer to a check­ argued that the U.S. should "give up our control $3 trillion in annual spending ing account with a phone call. Overnight re­ self-imposed constraints" and "make an end through periodic adjustments in about $45 purchase agreements and Eurodollars usual­ of monetary restriction." By breaking all billion of bank reserves. Not an easy task. ly exceed $40 billion, and are curiously links with gold, said Culbertson, we could First of all, what is money? In March lumped together with 8-year certificates in safely pursue a "moderately expansive" 1979, the Shadow Open Market Committee M.. Such cash management devices have policy of increasing the money supply noticed that "there is now a large and rapid­ only been significant for two or three years, "something like 6 to 8 percent." As unem- ly growing volume of financial assets not making the old historical relationships 13650 CONGRESSIONAL RECORD-HOUSE June 15, 1982 A simpler explanation is that too would not be inflationary. It de­ stable world of Bretton Woods, but all that the recession lowered both interest pends on real growth and velocity. models to predict velocity broke down after rates and reservable deposits last fall. In the fourth quarter of 1981, the interest 1972-73, when the U.S. suspended gold con­ rate on 3-month T-bills fell from 15 percent vertibility and endorsed floating exchange OUTPUT OR PRICES? to 11.8 percent. The growth rate of M., rates. Interest rates now move as much in a In his classic 1956 restatement, Milton which is dominated by interest-sensitive in­ day as they used to in a year. Thus, a survey Friedman wrote that "the quantity theory struments, slowed from 11.2 percent to 9.2 on the demand for money by David Laidler is in the first instance a theory of the percent. The growth of M,, which is discour­ laments that "it was never possible com­ demand for money. It is not a theory of aged by high rates, rose from zero to 5. 7 pletely to get away from the conclusion that output, or of money income, or of the price percent. The monetary base slowed down. the function has shifted after 1972." "After level."25 But the elaborate efforts to predict What does all this mean? Not much. all," notes Laidler, "monetary policy is im­ the demand for money broke down with col­ Monetarists still can't decide on a mean­ plemented over time, and unless the rela­ lapse of gold convertibility and pegged ex­ ingful and controllable measure of money. tionship it seeks to exploit can be relied change rates in 1972-73. Phillip Cagan of Columbia and David upon to remain stable over time it cannot be The late Harry Johnson of the University Laidler, of Western Ontario strongly favor used successfully." 22 of Chicago decided that monetarism was a M •. The St. Louis Fed and Robert Wein­ At the end of 1980, a rigorous study by passing fad, partly because of the monetar­ traub of the Joint Economic Committee are Robert Weintraub said, "We expect the ists' habit of "disclaiming the need for an sticking with Mr. Allan Meltzer of Carnegie­ trend rate of rise of M,8 's velocity to drop analysis of whether monetary changes af­ Mellon seems to be leaning toward the mon­ from 3.2% to about 2% per year, with tne fected prices or quantities."26 Allen Meltzer, etary base. Milton Friedman used M. last spread of NOW accounts. We would com­ for example, acknowledges that "none of year to show that money growth had not pensate for this by adjusting the long run our models predict changes in output reli­ slowed down, but uses M, this year to show target for yearly M,8 growth upward by 1 to ably. "Few even try. Two leading Keynes­ that money growth has not been steady. 1%%." 23 ians likewise admit that their models too It makes a lot of difference. It should be Velocity is officially classified as a coinci­ "were demand-oriented, and paid almost no obvious that high interest rates artificially dent cyclical indicator, so it fell with the attention to the supply side of the econo­ depress M, and raise its velocity, that the sharp fall in real output from last October my. "21 Hence the supply-side counterrevolu­ monetary base shows almost no predictable through March. The only half-hearted ex­ tion. relationship to anything in the past two pansion the U.S. has experienced lately was But even if the growth of money plus ve­ years, and that broader. aggregates are not between the third quarters of 1980 and locity were under control, that is not controllable by the Fed.18 Besides, the 1981. At that time, velocity did not rise by enough. It is not a matter of indifference broader aggregates have been 2%, or by 3.2%, but by 6%. Is that the new whether an 8 percent growth of nominal speeding-up in the last year or two, so the "trend" for velocity if and when the econo­ GNP consists of 8 percent inflation and zero traditional Friedmanite long lag with M2 my recovers? Nobody has the slightest idea. growth or zero inflation and 8 percent real points to more inflation ahead while M, or Whatever "stability" can be found in long­ growth. "An increase in real activity raises the base does not. run trend of M, velocity is only because M, the demand for real money, which, given Not all of the confusion, however, sug- has been redefined. The old M, velocity nominal money and the rate of interest, is gests that money is undercounted. Most of showed an even clearer tendency to acceler- accommodated via a decline in the price June 15, 1982 CONGRESSIONAL RECORD-HOUSE 13651 level."28 Real growth is anti-inflationary in decisions to spend more might cause an in­ money and GNP are implausible or at least fundamental and lasting ways. Yet growth crease in the supply of money, as people unpredictable, (4) spending depends on may be stifled by a monetarist regime that sold assets to get cash. more than cash balances and desired cash cannot distinguish between a demand for On the face of it, one might suppose that balances depend on more than planned cash to finance more real growth -year the demand for money exceeds the supply­ If the lag is known, however, rational ex­ time for the Fed to buy bonds velocity is increasingly un­ showed that monetary policy was too tight spending could easily be backwards. That is, predictable, (3) any lags between changes in in 1928-32. Alternatively the sizable inflow 13652 CONGRESSIONAL RECORD-HOUSE June 15, 1982 of gold into the U.S. in 1929-30 was an TABLE 2.-SHOULD THE FED TARGET PRICES OR M?­ CONVERTIBILITY equally clear signal that the supply of dol­ Continued Paying more attention to the conse­ lars was inadequate. The Fed, as Milton quences of monetary policy-prices, interest Friedman observes, was "contracting the Com· rates and exchange rates-would be a major money supply when the gold standard rules M modity Price rule improvement, but still remains a matter of called for expansion." 3 5 prices discretionary management. A quantity approach to money, on the In order to institutionalize a price rule, it other hand, would have given ambiguous Ju l...... 0.2 1.3 Loose. is necessary to convert dollars for gold, and signals about deflation until it was too late. Aug ...... 0.4 1.0 Do. Sep ...... 0 - 2.2 Tight. vice-versa, on demand at a fixed price. The There was no significant decline in the Oct...... 0.4 -2.0 Do. "right price" is that price at which we ob­ money supply until March 1931, and the Nov ...... 0.8 - 2.4 Do. Dec ...... 1.0 -2.3 Do. serve neither inflation nor deflation. The monetary base continued to rise throughout only way that foreigners or speculators the 1930-33 deflation, as people held more Source: U.S. Department of Commerce, Business Conditions Digest, Series 85 could upset the fixed gold-dollar ratio would currency and banks held more reserves. A and 23. be by monopolizing the stock of gold or dol­ policy of slowly increasing the monetary lars, which is clearly impossible. base, as some now propose, would not have Other sorts of price targets have been pro­ Stabilizing the value of dollars in terms of prevented the Great Contraction. Any price posed, but most are less direct ways of gold is not "price fixing" any more than sta­ rule or gold standard, however, would have achieving similar results. Ronald McKinnon bilizing an index of prices would be called worked. of Stanford proposes pegging exchange "price fixing." "Just as every commodity Broader price indexes, such as the produc­ rates with countries that have a somewhat has a value in terms of the unit," wrote er price index, are too sluggish, among better track record of inflation, like Germa­ Ralph Hawtrey, "so the unit has a value in other problems . ern Arkansas. Their program consists 30 Quoted in Antonio Martino. "Containing Infla­ of 8 full concerts, 12 childrens' con­ There is no viable alternative. tionary Government . My home district, is extemely fortu­ Bank of Philadelphia Business Review . Also unpublished studies by Gerald Dwyer at 34 Lauchlin Currie "The Failure of Monetary Emory and Roger Kormendi, University of Chicago. surpassed our wildest expectations. 3 Policy to Prevent the Depression of 1929-32" in Dr. Harris' remark is from testimony before the "Landmarks in Political Economy" in "Landmarks in Political committed to providing the finest con­ United States," p. 361. cert music for their communities. It is Economy.'' 3sRalph Hawtrey, "Currency and Credit" pp. 133-5. Office>. and the Federal Reserve Bank of Atlanta 7 Milton Friedman, "Capitalism and Freedom" will soon release my talk in the proceedings of an The orchestral arts which were once April conference on supply-side economics. pp. 140-41. cans, are now available to everyone. As pp. 98-99. 39 • R. J. Gordon "The American Economy The SPEAKER pro tempore. Under in Transition" . spiring musical compositions to Arkan­ arts and education. In brief, the bill 22 David Laidler, "The Demand and Supply of Money Yet Again," paper presented to a Carnegie­ sans every year. I am particulary places donation boxes on the Federal Rochester conference, April 1970. See also Albert proud of their accomplishments. income tax form, enabling taxpayers Friedberg, "Gold and Demand-Side Monetarism," As the oldest symphony orchestra in to make tax deductible contributions --. The North Arkansas Symphony Or­ 2s Milton Friedman . tant to our society to be threatened by 21 A. H. Meltzer, "The Great Depression," Jour­ ny Society, with the purpose of budgetary constraints. Congress must nal of Monetary Economics ; Alan Blind­ spreading music to all of northern Ar­ explore creative vehicles, such as H.R. er and Robert Solow, "Does Fiscal Policy Still kansas. This orchestra, conducted by Matter?" Ibid. 4932 to insure they will not be jeop­ 2a Eugene Fama, "Money and Inflation" . sicians, including student and faculty 13654 CONGRESSIONAL RECORD-HOUSE June 15, 1982 THE NINTH ANNUAL . STAN Soon young Tommy traded shots with the Robby Norton, Action, Massachusetts. MIKITA HOCKEY SCHOOL FOR best of them. David Officer, Hanover, New Hampshire. THE HEARING IMPAIRED Professionals saw a future for this deter­ Anthony Pietraniello, Staten Island, N.Y. mined boy, Mickey Pilson, Ardsley, New York. The SPEAKER pro tempore. Under For Tommy White had all the moves in the Ron Player, Cape Vincent, New York. a previous order of the House, the gen­ sport he so enjoyed. Tom Robbins, Cincinnati, Ohio. tleman from Illinois Paul Malaney, Norwell, Massachusetts. aster areas and received Presidential Daniel Martin, Manchester, New Hamp- A deaf young lad watched a hockey game shire. declarations, the most significant dam­ and asked himself in fear, Michael Maynard, Madison, Wisconsin. ages caused by the storm were located Is it a fact that I can't play because I cannot Bill Mellen, Lowell, Massachusetts. in Love Creek in Santa Cruz County. hear, Tony Meister, Buffalo, New York. Ten lives were lost along with nine I know I can, his answer was and he bought Keith Mischo, Green Bay, Wisconsin. homes which were destroyed due to a pair of skates. Robert Modafferi, Brooklyn, New York. the heavy rains which caused mud­ Then Tommy White took to the ice with a Gary Montalbano, Framingham, Massa- slides in the Love Creek area. The smile upon his face chusetts. slide in Love Creek affected not only He learned that Stan Mikita, a former Rick McGaughey, Holbrook, Massachu­ those residents who experienced direct Blackhawk star, setts. Had a program for the deaf who came from Mick McLaren, Londonberry, New Hamp­ physical damage but also many resi­ near and far shire. dents of this area who have been faced To learn the game of hockey, its rules and Kenneth Newman, Plymouth, Minnesota. with a unique and highly dangerous discipline. Daniel Newman, Plymouth, Minnesota. situation. June 15, 1982 CONGRESSIONAL RECORD-HOUSE 13655 The drenching rains and mudslides offered to these residents. This is not 1954 or for purposes of determining the eli­ of January led the Army Corps of En­ just a case of repairing the damages gibility or extent of eligibility of any person gineers to conclude after a study of from a storm. This is the tragedy of for assistance under the Social Security Act the Love Creek slide that the moun­ telling families to destroy homes un­ or any other Federal law.e tain area adjacent to the actual slide tarnished by the storm itself. The leg­ was unsafe. Therefore, the residents islation I am introducing is confined ELECTIONS IN HONDURAS were told that they could not return solely to the unique disaster of 29 resi­ to their homes, which were perfectly dents that have been affected in the The amount of any grant made to an November 29, 1981) short of aiding them to replace their individual under subsection (a) shall not Between November 24, 1981, and Novem­ lost property at another location. The exceed an amount which, when added to all ber 30, 1981, a seven member international very purpose of disaster assistance is other Federal assistance provided to such team was present in Honduras, Central to try to give families the opportunity individual as a result of the major disaster America to observe the national elections at to repair their damage and become referred to in subsection (a) and relating to the invitation of the Honduran National whole again. That will not happen in such individual's existing principal resi­ Electoral Tribunal and the Honduran gov­ dence or the purchase by such individual of ernment. The invitation was extended to Love Creek. a new principal residence, is equal to 75 per­ the Washington Office on Latin America Today, therefore, I am introducing cent of the fair market value of such exist­ . For purposes of this sub­ of the United States in that region. this legislation, residents would section, the term "Federal assistance" shall The delegation included political scientists become eligible for additional assist­ include, but shall not be limited to, the and representatives of public and ecumeni­ ance that, when combined with other amount by which an individual's Federal cal organizations. 1 The seven members were: income tax is reduced by reason of any loss disaster aid, will not exceed 75 percent incurred with respect to an existing princi­ of the value of their home in Love pal residence as a result of such major disas­ ' The composition of the delgation evolved Creek. ter. through a series of meetings between a variety of I think the extraordinary circum­ human rights organizations including: the Disarma­ No amount of any grant received under ment Educational Fund, WOLA, the Center For stances which exist in Love Creek this Act shall be considered as income for Development Policy, Oxfam-America and the merit extraordinary assistance being purposes of the Internal Revenue Code of Church World Services. 13656 CONGRESSIONAL RECORD-HOUSE June 15, 1982 Ramsey Clark-Former Attorney General so at their own peril. The delegation would Corruption and incompetence on the part of the United States in the Johnson Admin­ also like to express concern over many elec­ of government officials have been as preva­ istration. Presently an attorney in New tion procedures. Technical and administra­ lent as changes in regimes. Several observ­ York City and President of the Disarma­ tive problems, as well as allegations of ers of Honduras remarked to us that the ment Educational Fund. fraud, served to undermine the otherwise only reason the military government was William Crotty-Professor of Political Sci­ positive atmosphere surrounding the elec­ willing to hold elections was that there was ence, Northwestern University. tion. Finally, choices were somewhat re­ nothing in the government coffers left to James Jeffords-Republican Congressman stricted in this election because of a lack of steal. from Vermont. discussion of meaningful issues by the The November election came at a time Theresa Kane-President of the Sisters of major candidates and institutional and non­ when Honduras desperately needed a re­ Mercy, Washington, D.C. institutional factors that worked against sponsible, trustworthy and capable govern­ Raul Manglapus-Former Foreign Minis­ minor party candidates. ment to deal with severe economic and po­ ter and Senator in the Philippines. Present­ THE SETTING litical problems. Officials at the U.S. Embas­ ly at the Center for Development Policy in The November 29 election was Honduras' sy in Tegucigalpa claim that Honduras Washington. first popular presidential election since could face an "economic Dunkirk" in 1982, Adolfo Aguilar Quevedo-International 1971. In April, 1980, a National Consitutent largely due to the worldwide recession and Lawyer, formerly President of the Mexican Assembly of 71 deputies was popularly elect­ an alarming dearth of foreign exchange at­ Bar Association ed and charged with writing a new constitu­ tributable to the rising cost of imported oil John Plank-Professor of Political Sci­ tion . nomic problems the country faces, it is un­ parties in terms of both advertising and Few Hondurans expressed enthusiasm for likely that the campaign promises can be news coverage. 2 the presidential candidates of the two major fulfilled. This could be particularly deleteri­ 2. A fair and open system of voter registra­ parties despite the country's overall excite­ ous to a country that is trying to go from tion without evidence of substantial false ment about the election. Bitter factional military to civilian rule and avoid the vio­ registration or exclusion. strife among the Liberals had nearly ended lence that characterizes its neighbors. in a split of its most liberal wing, the Popu­ 3. Understandable voting procedures that lar Liberal Alliance , a coalition of nandez, a former Liberal and successful the Soviet-leaning Honduran Communist A shortage of funds created several road­ businessman. The Christian Democratic blocks for the minor parties. The most obvi­ Party, the Maoist Marxist Leninist Commu­ candidate was a former member of the Na­ nist Party, and the Honduran Socialist ous was an inability to advertize as much as tional Party and once an ambassador to the the National and Liberal parties. , the most feared branch set of electoral laws. sons and Salvadoran refugees. Clearly, the of the Honduran armed forces. The DNI al­ Problems we observed included: military set the limits within which the legedly ransacked the party office, taking Early closing of registration the salary of such Member as a BEDELL, Mr. PEYSER, Mr. RUDD, Mr. BAILEY any compensation derived by such and Mr. SCHEUER. -At the appropriate place insert: Member for personal services actually ren­ H.J. Res. 486: Mr. LEBOUTILLIER and Mr. SEc. 217A. (a) The last sentence of section dered prior to the effective date of this sec­ HAGEDORN. 162(a) of the Internal Revenue Code of 1954 tion or becoming such a Member, whichever H .J. Res. 500: Mr. COATS. is occurs later; H. Con. Res. 216: Mr. FAZIO and Mrs. amended by inserting ", but amounts ex­ any amount paid by, or on behalf of, a SN OWE. pended by such Members within each tax­ Member to a tax-qualified pension, profit­ H. Con. Res. 341: Mr. RUDD, Mr. DONNEL­ able year for living expenses shall not be de­ sharing, or stock bonus plan and received by LY, Mr. FORD of Tennessee, Mr. LELAND, Mr. ductible for income tax purposes in excess such Member from such a plan; and DUNCAN, Mr. MURPHY, Mr. HATCHER, Mrs. of $3,000" after "home". CD> in the case of a Member engaged in a BOGGS, Mr. CARMAN, Mr. HUGHES, Mr. (b) Paragraph (4) of section 280A of trade or business in which the Member or MARKEY, and Mr. ROEMER. such Code (relating to coordination with his family holds a controlling interest and H. Con. Res. 354: Ms. MIKULSKI, Mr. RoE, section 162(a)(2)) is amended to read as fol­ in which both personal services and capital Mr. AuCoIN, Mr. CoRRADA, Mr. ALBOSTA, Mr. lows: are income-producing factors, any amount WEAVER, Mr. BINGHAM, Mr. ROSENTHAL, Mr. "(4) COORDINATION WITH SECTION received by such Member so long as the per­ YATES, Mr. EDWARDS of California, Mr. 1G2<2>.-Nothing in this section shall be sonal services actually rendered by the SOLARZ, Mr. SMITH of Pennsylvania, Mr. construed to disallow any deduction allow­ Member in the trade or business do not gen­ STARK, Mr. MITCHELL of Maryland, Mr. WAL­ able under section 162(a)(2) by reason of the tax­ law. H. Res. 367: Mr. STATON of West Virginia, payer's being away from home in the pur­ Mr. FRENZEL, Mr. SIMON, Mr. ROBERTS of suit of a trade or business Subsection (a) of section 139 of the Act H. Res. 421: Mr. BARNARD, Mrs. BYRON, new section: Mr. DONNELLY, Mr. GARCIA, Mr. HOYER, Mr. of October l , 1981 (95 Stat. 967), is hereby LEACH of Iowa, Mr. LEVITAS, Mr. KASTEN­ repealed. SELECTED ACQUISITION REPORTS TO THE MEIER, and Mr. WIRTH. The amendments made by this section CONGRESS H. Res. 456: Mr. DWYER, Mr. SIMON, Mrs. shall apply to taxable years beginning after SEC. 902. Section 811 of the Department of FENWICK, Mr. EVANS of Delaware, Mr. AN­ December 31, 1981. Defense Appropriation Authorization Act, DERSON, Mrs. BOGGS, Mr. NEAL, and Mr. SEc. 217B. (a)( 1) Except as provided by 1976 - OBERSTAR, Mr. MARKEY, Mr. BINGHAM, Mr. 1981, have outside earned income attributa- by inserting "0)" after "(a)";

89-059 0-86-30 (Pt. 10) 13662 CONGRESSIONAL RECORD-HOUSE June 15, 1982 (B) by inserting "and ending with the first dar quarter ending on December 31 of any (2) by striking out "major" in subsection calendar quarter which ends not less than fiscal year shall be submitted not later than (c) both places it appears in paragraph (1) 30 days after the date of the enactment of 20 days after the President transmits the and paragraph (2). the Department of Defense Authorization Budget to the Congress for the following Act, 1983," in paragraph (1) after "Decem­ fiscal year, and the reports for the other H.R. 6094 ber 31, 1979,"; and three calendar quarters of any fiscal year By Mr. FRENZEL: (C) by adding paragraph (1) the following shall be submitted not later than 30 days -On page 3, line 18, strike the figure new paragraphs: after the end of the calendar quarter. If a "$568,801,000" and insert in lieu thereof the "(2) Beginning with the first calendar preliminary report is submitted for any cal­ figure "$530,524,000". quarter which begins not more than 30 days endar quarter, then the final report for -On page 4, strike lines 8 through 12 and after the date of the enactment of the De­ insert in lieu thereof: partment of Defense Authorization Act, such calendar quarter shall be submitted to the Congress not later than 15 days after "(c)(l) No part of any sum that is appro­ 1983, the Secretary of Defense shall submit priated under the authority of subsection to the Congress each calendar quarter a the submission of such preliminary report. may be used- written selected acquisition report for all de­ " (3) The requirement contained in para­ "(A) for administrative expenses to pay fense systems which are estimated, in the graph (2) to report on a particular defense any employee of the United States Customs estimate used in planning each such defense system may be waived by a majority vote of Service overtime pay to an amount exceed­ system, to require a total cumulative financ­ the members present and voting, a quorum ing $25,000; or ing for research, development, test, and of the committee being present, of both the "CB> to implement any procedure relating evaluation of the defense system in excess Committee on Armed Services of the Senate to the time of collection of estimated duties of $200,000,000 or a cumulative production and the Committee on Armed Services of that shortens the maximum 10-day defer­ investment for the defense system in excess the House of Representatives."; and ment procedure in effect on January 1, of $1,000,000,000. The report for the calen- 1981.