August 19, 1980 EXTENSIONS OF REMARKS 22017 EXTENSIONS OF REMARKS
FOR A NEW FOREIGN POLICY and languages of countries throughout military has declined as pay for expe AND DEFENSE POSTURE. the world. For too long we have been rienced technicians and officers lagged willing to sit back and let people come well behind inflation. HON.E.THOMASCO~ to us. Today this is no longer desirable Should we be surprised that the Per or even possible. sian Gulf is disintegrating while our OF MISSOURI The United States and the Soviet leaders narrowly focus their energies IN THE HOUSE OF REPRESENTATIVES Union are both competing for the on a small band of terrorists and fa Tuesday, August 19, 1980 hearts, minds, trade, and allegiances natics in Iran? e Mr. COLEMAN. Mr. Speaker, this of these Third World nations. And Should we be surprised that the So year the American people and their make no mistake about it, the Commu viets have occupied far-off Afghani Government have the opportunity to nists want total control of these coun stan-and are poised on the border of set a new course for our Nation's for tries. The Soviet pattern of using their Iran-when the administration finds eign policy and defense posture. own military force or proxy troops Soviet combat troops in nearby Cuba There can be no question that the continues unabated. Since 1974 nearly acceptable? 1980's could well be the toughest test 100 million people have been brought And finally, should we be surprised our Nation has faced in the field of di under Communist domination in that America and the world now Angola, Ethiopia, Afghanistan, South openly question our own military ca plomacy and world peace. While we pability as the failed rescue attempt in wrestle with th,e complex problems of Yemen, Mozambique, Laos, Cambodia, and South Vietnam. It is apparent we Iran lays bare the degree of our mili unemployment, recession, and infla tary equipment preparedness to an tion, we in Congress and the President must reverse and regain the geopoliti cal momentum. We must again use our amazed world? must not forget that, as one observer These questions, heightened by said, "the most important social serv national resources in the tradition of a great power. recent events, must be asked with a ice a government can do for its people We must always be aware of the sense of urgency in view of the Soviet is to keep them alive and free." complex interrelationships between Union's concerted, deliberate military Let me take just a few moments to what happens in the Far East and the growth. There is no question, however, discuss what I see to be the problems Middle East; between vital resources that the Soviet objective is clear stra and possible solutions for the dire situ and the directions of world commerce; tegic military superiority. ation we now face. between economic productivity and According to the Department of De Our Nation has endured humili national defense; between a nation's fense, in 1979 the Soviet Union spent ation, retreat, and injury abroad at ideology and its will; between national 50 percent more on defense than we the hands of fanatics and terrorists. will and the ability of its armed forces did. The Pentagon now estimates the American Ambassadors have been shot to prevent conflict. Soviets are using 11 percent to 14 per and killed, and American citizens are The cold reality is that our Nation's cent of their gross national product still the captives of terrorists in Iran. military might is being questioned as for defense purposes, compared with Our Nation and people have remained never before. A decade ago our Nation our own 5 percent. exceptionally tolerant and patient in was unmatched militarily. We were Soviet strategic nuclear forces have the face of these outrages. But Amer secure and much of the world took come from a position of substantial ica is growing impatient, the American shelter under the umbrella of our numerical inferiority 15 years ago, to people are growing angry. strength. As we enter the 1980's, for one of parity today-with the poten Recent events in Iran and Afghani the first time since the end of World tial for strategic advantage in the near stan-indeed, in the entire Persian War II there are s·erious questions future. At the same time, the Soviet Gulf area-make certain that America both at home and abroad about leadership has increased significantly no longer has the luxury of consider America's competence. its ground and tactical forces and ing any place on Earth too remote to Should we be surprised that our Far greatly expanded its seapower. Unless affect its own security. The fact is the East allies question our commitment the United States drastically increases United States depends heavily on im when the administration publicly an its military budget the Soviets will by ports for several of the basic minerals nounced the withdrawal of U.S. troops 1985 have unquestioned nuclear supe vital to a modem economy and mili from Korea, then waffled, then decid riority, overwhelming superiority on tary force. Chromium is an example ed to keep them? the ground and at least equality at a necessary ingredient to make stain Should we be surprised that our Eu sea. less steel, for ball bearings, sensitive ropean allies are alarmed and angered How the Soviets' military power will instruments, missiles, and aircraft en after they have acted on our word to be used is no mystery in light of recent gines-92 percent must be imported. develop the neutron bomb then the Soviet activities throughout the world. Our major sources are South Africa, administration decides not to do so? Soviet adventurism is clearly on the 33 percent; and the Soviet Union, 25 Should we be surprised that the So rise, increasingly taking the form of percent. Most of the known reserves in viets have undertaken an alarmingly Soviet military intervention. Soviet ac the world are in South Africa and Zim aggressive policy worldwide when we tions in Angola and Ethiopia in the babwe. Because of our dependence on consider that the United States has 1970's and their cynical, blatant occu Mideast oil supplies the Straits of steadily reduced its net expenditures pation of Afghanistan, illustrate this Hormuz is another critical area-a 12- on defense, while the Soviets were en trend with frightening clarity. Unless mile wide waterway through which 40 gaged in a massive arms buildup? An America acts now the Soviet Union percent of the free world's oil passes, inventory of the last 2 years shows the will be No. 1; the United States No.2. 20 million barrels a day, 800,000 bar White House vetoed congressional au Ironically. the Soviets as they rels every hour. Zinc, cobalt, titanium, thorization of a nuclear aircraft carri achieve this superior military position and numerous other important miner er, delayed production of the cruise may not even have to resort to its de als can only be found in the develop missile, the Trident submarine and the ployment to make war in order to ing or so-called Third World nations. attack submarine program, as well as reach their goals. The Soviets have Our relationship with these Third opposing the development of the B-1 learned that military power is usable World countries must improve. We bomber. Aircraft production has not not only in wartime, but in peacetime must become aware of the cultures even covered attrition. Morale in the as well. It is also a statement of politi-
e This "bullet.. symbol ideritifies statements or insertions which are not spoken by the Member on the floor. 22018 EXTENSIONS OF REMARKS August 19, 1980
cal power. It announces to their own THE CUBANS' FLIGHT TO FREE OUR COUNTRY'S FLAG oppressed peoples dominated by com- DOM-WHAT IT REALLY MEANS When I was a little child munism that defiance is not a viable I loved our glorious flag alternative. HON. ROBERT K. DORNAN I loved to sing such happy songs I was not known to lag. Let us always remember two things OF CALIFORNIA I about communism: First, no people IN THE HOUSE OF REPRESENTATIVES And when to womanhood had grown has ever freely chosen to live under a I lived on a foreign shore Tuesday, August 19, 1980 I lived there under an alien flag Communist regime; and second, no I loved mine more and more. nation continues under Communist e Mr. DORNAN. Mr. Speaker, Fidel Castro's sudden change to a liberal at I read about our heroic past control except through force. And in a Twas in the month of July larger sense the Soviet's military titude toward emigiation rights, allow Our forefathers met together might addresses the world-influenc ing all of those who want to leave The heat was very high. ing the behavior and thinking of other Cuba to do so, has revealed the degree The heat in Philadelphia was great nations-sometimes even our own of discontent which prevails in that Arguments were hotter still allies-as they hesitate to support the country. They argued and they really quarreled American position to boycot"t the Within hours of his announcement, And this went on until... Olympics or embargo trade in Iran. an estimated 10,000 Cubans had They had decided to break off packed into the Peruvian Embassy. Our attachment to the King As the chairman of the Defense We can only guess the numbers of And when they had decided so to do Committee of the West German par others who wanted to flee, but were How the bells did ·ring. liament remarked to me in Bonn earli unable to reach sanctuary in time. The bells they rang er this year, the Soviets are a "risk cal As my colleagues well know, over The people they did shout culated" people-as evidenced in 100,000 Cubans now wait to be reset And thus we had our freedom World War II when they would not tled in their new home. Now is the And that is how it came about. attack unless they had a 5 to 1 nu time to turn our questions to the rea Then Betsy Ross was visited merical advantage. As the Soviets' sons they were allowed to flee Castro's She was a seamstress fine military and political might grows, the perfect society in the first place. She was prevailed upon to make a flag risks associated with their military ag They told her line by line. It is my fear that the President, for They wanted flag both blue and white gression decline-witness the invasion all of his good intentions, has been And it must have some red of Afghanistan. used again. And it must have as many stars These are reasons enough why While we welcome these new Ameri As states where blood was shed. America must restore the balance of cans with open arms, we must recog So they decided the flag should have powe:r. As Winston Churchill said in nize that we have played a major role Stripes both red and white 1934: in the reduction of internal pressures And stars upon a field of blue Like the heavens are at night. To urge the preparation of defense is not and discontent in Castro's Cuba. Fidel to assert the imminence of war. On the con may rest safely once again, knowing Then after they had decided that trary, if war was imminent, preparations for that for the near future, his dictato They also decided this defense would be too late. rial rule is unchallenged. That every state should have a star Colleagues, now is the time to inves And that is how it is. As a recent Kansas City Times edito tigate the numerous human rights vio Our country had its freedom rial pointed out-this country has lations we all know are occurring in But we had no great big voice learned through adversity, and with Until the people decided Cuba. I call on the administration to That everyone should have a choice. intelligence, time, and good fortune seek establishment of an investigative has been able to recover before a tide Then the Constitution was established commission to go to Cuba and deter It gave us human rights just ten of disaster becomes irreversible. . The mine the extent of the suffering. The And showed us how we must behave next few months will tell whether the Cuban refugees tell shocking tales of And we have relished it since then. United States will have the determina cruelty and inhumanity. The world Through many wars and skirmishes tion to rebuild and modernize decay must know, once and for all, the rea We have come out all right ing weapon systems at virtually every sons why thousands are fleeing Cas Through elections and appointments level. The need is plain. The danger is tro's beautiful workers paradise.e · That often give us fright. apparent. The question is whether the But still we maintain our written laws will is there. That our forefathers planned we:ve kept our office fully filled National will involves more than the And· all are fully manned. use of military power. It includes a AN INDEPENDENCE DAY POEM _\nd we have grown and flourished basic feeling and faith that what the Abolished slavery too United States is doing is right. and HON. WILLIAM E. DANNEMEYER And other things we've done just right honorable. And that what we repre OF CALIFORNIA And continue so to do. sent in the world is worth defending. IN THE HOUSE OF REPRESENTATIVES The flag has flown over a true land The boat people of Vietnam and Cam Tuesday, August 19, 1980 It is both yours and mine bodia, and now the massive exodus And when we're asked to serve we will from Cuba are recent and poignant ex e Mr. DANNEMEYER. Mr. Speaker, Respond and not repine. amples that when given an opportuni last month, I had the pleasure and And when my son was called upon ty, people will choose freedom over op honor· of attending the Senior Citizens To fight on alien shore pression. Breakfast sponsored by the City of My heart was nearly broke but Orange. While there, I was given a I loved it more and more. If there has been a decline in Ameri copy of a poem written by one of the So many mother's sons bled can will it has not been a failure of the members of the group, which captured And given their willing life people but of her leaders. Her people not only the spirit of the occasion but That we may love and work want America to be respected; they the deeper meaning of the Fourth of And freedom be from strife. want America to be secure; they want July for each and every one of us. In So if you ever see the flag America to be strong. It is time Ameri asmuch as that deeper meaning is all Exposed before your face ca's leaders respond to her people and too-infrequently captured, I thought I Please rise to show your pride define her purpose, restore her And take your willing place would share Mrs. Elizabeth Grabeel's To work and love and bleed and die strength, and revitalize her will. poem, "Our Country's Flag" with my And live in reverence. It has been said that spirit gives colleagues and I ask unanimous con And not just sing "God bless the flag" edge to the sword, the sword preserves sent that it be inserted in the RECORD But give a reason why the spirit, and freedom will prevail.e at this time. That you are proud to live upon August 19, 1980 EXTENSIONS OF REMARKS 22019 The land of peace and freedom Kaddoumi's words were never dis and his foreign policy advisers will And ever more shall be avowed, and the PLO tried desperately peruse these two articles most careful Nor let the hand of anyone to head off the condemnation of the ly. I am confident t.hat the facts they Tear down our liberty. Soviet Union's Afghanistan invasion at contain would persuade even the most So our flag we have cherished it the conference of the Islamic nations naive member of the Carter adminis And hold it so very high And that is why we're here today in January of 1980. tration to reverse t.he present efforts On this 4th of July. In pursuing clos(: ties with the to bring the PLO into Middle East Kremlin, PLO leader Yasir Arafat has So let us all with voices sing peace negotiations. ., God hold us in your hand made 14 publicly announced visits to Moscow in the past dozen years, and God bless the place on which we live H.R. 4805: THE RESEARCH God bless our native land.e has met a number of times with top Soviet officials at other locations. MODERNIZATION ACT OF 1979 The PLO boasts publicly about the THE PALESTINE LIBERATION OR massive assistance it receives from the HON. ANDREW MAGUIRE GANIZATION: ANTI-AMERICAN Soviets. In an interview with Marilyn OF NEW JERSEY SPEARHEAD IN THE MIDDLE Berger, of the Public Broadcastin~ IN THE HOUSE OF REPRESENTATIVES EAST Service, September 25, 1979, Zehdl Tuesday, August 19, 1980 Terzi, the PLO's United Nations ob e Mr. MAGUIRE. Mr. Speaker, as a HON. NORMAN F. LENT server was asked what support the member of the Health and the Envi OF NEW YORK Soviet Union supplies. Terzi answered: ronment Subcommittee and as a co IN THE HOUSE OF REPRESENTATIVES • • • They give us full support-diplomat sponsor of H.R. 4805, I have been dis ic, moral and educational, and they also Tuesday, August 19, 1980 appointed that there has not been open their military academies to some of more movement toward a fair hearing e Mr. LENT. Mr. Speaker, there is a our freedom fighters. and consideration of the Research dangerous and still-growing movement Ms. Berger then asked whether the Modernization Act. This is a humane in the United States to accept the Pal military equipment is given directly to and innovative bill, one which surely estine Liberation Organization the PLO. Terzi responded: deserves its day in court. as the legitimate representative of the Oh yes, oh yes. We're getting our-those One primary reason for its lack of Palestinians in the Middle East. This machineguns and RPG's and all that. success is a general misunderstanding is fostered by the mistaken belief that Ms. Berger: of what the bill's purpose is. One of the PLO is a bona fide Palestinian or the best explanations of H.R. 4805 ganization representing purely Pales Explosives? Terzi: which I have run across appeared in a tinian interests. letter to the editor of Science Maga Nothing could be further from the • • • Explosives, yes. zine by Eleanor Seiling of United truth. In fact, it is clear to anyone who Writing in New York magazine of Action for Animals, Inc. takes the time to scrutinize the deal September 24, 1979, about a TV docu One point which Ms. Seiling makes ings of this terrorist organization that mentary on the PLO for the Canadian is very important. She notes that the the PLO is a close and loyal ally of the Broadcasting Corp., Herbert Krosney, Department. of Health and Human Soviet Union. Its members serve in the documentary producer, stated: Services issued a statement of re Middle East as the Cubans do in • • • Since 1974, sources say, as many as search principles recently wherein the Africa-as Soviet surrogates. PLO ter 1,000 Palestinians have been sent to the Department said: rorists trained in the Soviet Union and Soviet Union and other Eastern bloc coun To assure that HEW health supplied with Soviet weaponry and ex tries for clandestine training in either Rus research is responsive to public concerns, plosives have played a major role in sian military or KGB camps. the public must participate in the setting of destabilizing actions throughout the I cite facts such as these, Mr. Speak research policies and priorities. Middle East. er in an effort to awaken Americans As most members know, the public For example, the PLO was instru to' the fact that the Palestine Liber has expressed a greater interest in this mental in triggering the civil war ation Organization works tirelessly legislation-and through that interest which devasted Lebanon in 1975-76. with the Soviet Union against Ameri learned more about the legislative The PLO also was an important can interests in the Middle East. I cite process-than in most bills this ses factor in the overthrow of the Shah of these facts to alert my colleagues in sion. Iran. For a decade before the Shah the U.S. Congress that we must do So I commend my colleagues' atten was ousted, some 3,000 of Khomeini's more to persuade President Carter and tion to this letter and the excellent de urban guerrillas trained with the PLO his foreign policy advisers against pur scription of the bill that it contains. It in Lebanon. A prominent official in suing their naive attempts to bring the appears below: the Khomeini regime, Sadeh Ghtzba PLO into the Middle East peace nego ANIMALS IN THE LAB deh trained with the PLO in South tiations. Nothing could be more dis steering com Madison Square Garden was of the surreal cancelled the modernization of Minuteman mittee that proposed program initiatives for ist school. The strangest flower that II, closed the Minuteman III production health research planning.• Because the bloomed in the Garden was Sen. Pat Moyni line <1, p. Soviet empire has entered a new period of not cite as proof of Democratic steadfast 191). The enormous constituent response to expansion." He did not dwell on the connec ness the 1980 platform provision regarding Congress when H.R. 4805 was introduced in tion between the fact and Carter's policies. Jerusalem. It says: "As stated in the 1976 dicates the degree of public interest in this But just two months ago, Moynihan said Af platform, the Democratic Party recognizes matter. · ghanistan had caused the collapse of what and supports 'the established status of Jeru With regard to publication in the Federal Moynihan believed was properly called "ap salem as the capital of Israel. . . . As a Register, the bill provides that the center peasement." symbol of this stand, the U.S. Embassy shall publish in the Register such alterna Moynihan told the convention that the should be moved from Tel Aviv to Jerusa tive methods "which meet the regulatory Democratic Party has responded to Soviet lem.'" scientific needs of the agencies," which is expansionism "with a sense of the history of The provision says, in effect: We promised not different from the present practice. our time." It is, evidently, ancient and irrel it four years ago. We could have done it at Because of the large numbers of scientists evant history that two months ago Moyni any time. We didn't, but words-our words, who have used animals in the laboratory for han said, with uncharacteristic understate at least-are cheap, so here they are again. their entire professional lives, we realize ment, that his party's recent performance in But if a party is this careless with words, that it is not simply "habit," the term used foreign policy "is scarcely a tale of mastery can it be trusted with power?e in the article, but professional orientation, and success," adding: "One has, to be frank, which limits the resources now devoted to to wonder whether the president is ready to the exploration of alternative methods. admit the nature of the threats we face." With the encouragement of increased feder Moynihan told that convention that the TAKING FREEDOM FOR GRANT al interest in this areas of research, it is en Carter administration "increased defense ED: THE GREATEST THREAT TO visioned that more scientists will become at spending in each and every one of the past FREEDOM tracted to the exploration and use of these four years." But not relative to Soviet techniques. spending. And only by an average of a triv The article does not point out that the ial half a percentage point a year. And after HON.ROBERTK.DORNAN National Society for Medical Research first cutting Ford's last proposed budget au OF CALIFORNIA has as its offical purpose "protect thority, Carter took three years to climb IN THE HOUSE OF REPRESENTATIVES ing the rights of scientic investigators to uti back to that level. lize laboratory animals," and thus it is not Moynihan told the convention that the Tuesday, August 19, 1980 entirely objective in its evaluation of this Carter administration has reversed a decline in defense spending conducted by Republi • Mr. DORNAN. Mr. Speaker, an ex bill. Even with this bias, the NSMR's state amination of voter turnout statistics ment, as reported in the article, noted that can administrations. The facts are: in fiscal "the expense, slow results, and poor reliabil 1968, 38 percent of the defense budget was and comments made by citizens to ity of animal tests is making alternatives for Vietnam. All of that was eliminated by Federal offices in almost any part of more and more attractive. • • •" 1975. Furthermore, between fiscal 1969 and our great Nation will identify a cancer The bill urges a direction to scientific re fiscal 1977 a Democratic Congress, led by which is growing to fatal proportions. search in which science has already begun senators such as Muskie and Mondale, cut The cancer I refer to is that of citizen to move, albeit slowly; it provides for a coop $41 billion in defense budget authority. Yet apathy in the government process and erative effort among federal research and in spite of that, and exclusive of the wind down in Vietnam, the Republican adminis the failure of many Americans to exer regulatory agencies that is already em cise one of our most fundamental bodied in HEW health research planning; it tration increased defense spending. calls for implementation by the research Moynihan told the convention that the rights under the U.S. Constitution, the agencies themselves through their repre Republican platform denounced SALT II right to vote. sentatives in the center; its severest critic and "derides the very quest for nuclear I would like to share with my col agrees that there is value in the develop peace." Moynihan's second point is false. leagues an essay written by one of my ment of alternative methods. I feel the de- His first point is peculiar, considering that, younger constituents, Richard Alber . scription of its effects upon scientific re 14 months after the Vienna summit, he still has not clearly endorsed ratification of toni of Rancho Palos Verdes. Richard search as "catastrophic" is unfounded and read this essay at the "Palos Verdes not supported by the facts.e SALT II. Well, perhaps these words to the conven Independence Day" celebration. I tion were an endorsement: "The present think he has done an excellent job of TAKING THE DEMOCRATS AT SALT treaty is no more than a photograph recognizing that the greatest threat to THEIR WORDS of the facts; no arms treaty with the Soviets freedom in America is taking this free can be otherwise. But what is more neces dom for granted. sary than the facts; what is more needed The essay follows: HON. BOB WILSON than the truth?" THE GREATEST THREAT TO FREEDOM OF CALIFORNIA Let's see: SALT II is a "photograph" of IN THE HOUSE OF REPRESENTATIVES In 1974 a Lithuanian citizen named Simas "facts," and facts are "necessary," therefore Kudirka tried to escape punishment from Tuesday, August 19, 1980 . . . Therefore what? The photograph is necessary? the Soviet government for reading an e Mr. BOB WILSON. Mr. Speaker, American magazine. After receiving no Moynihan waxed indignant about the Re asylum from officers of an American ship, under leave to extend my remarks in publican platform's statement that Carter the RECORD, I include the following: he pleaded with them, saying, "I want policies constitute "in effect ... unilateral America. America free. I want free." Untold [From the Washington Post, Aug. 17, 19801 disarmament." He said, "If a party is this numbers of people living outside this coun TAKING THE DEMOCRATS AT THEIR WORDS careless with words, can it be trusted with try share the feelings of this man. It is sad power?" What the Republicans are-and to think that there are Americans who do Moynihan prudently is not-talking about is not value the freedom they have. Taking NEW YoRK.-Being inside a convention that the Carter administration has unilater hall is like being inside an impressionist freedom for granted could be the greatest ally: threat to it. Cancelled the Bl bomber, delayed MX One way this can be illustrated is through • "Health Research Activities of the Department three years, delayed all cruise missiles two an examination of voter turnout. Although of Health, Education, and Welfare; Current Efforts and Proposed Initiatives" . 12:00 noon: Ceremonies, ration of the 21st observance of Cap that you can live to see the time when a honored speakers, and folklore entertain tive Nations Week this past July. Communist society is built, and you will then ment at Central Park mall. In this regard, I would like to in regret that you came to understand the ad Captive Nations Week is proclaimed each clude several articles from publica vantages of socialism too late." year by the president of the United States tions across the country, reporting on As with all the Captive Nations, the same to focus attention on many nations ruled by methods will be used to bring about their the bullets of the communist slavemasters. the events that were scheduled to cele fall: demonstrations, agitation, infiltration, The week-long event is dedicated to the in brate Captive Nations Week. First, a intimidation, deceit, subversion and finally, evitable overthrow of communism. It offers letter which appeared in the Bay City, total control and enslavement. hope to oppressed and enslaved people all Mich., Times, by Father Joseph Reitz, To the Communists, total control means over the world for freedom and self-determi pastor of Our Lady of the Lake forever. Never, in six decades, have Commu nation. Church, Houghton Lake; second, an nist China or the Soviet Union granted in article from, the Manchester, N.H., dependence to the country once it has been [From the Neighborhood News & Garfield Union-Leader, commenting of the ob enslaved under Communist imperialism. If Heights Tribune most valuable Members of the House What an honor and thrill it would be to In an election year, President Carter of Representatives. There is no have an Afghan athlete-defector as the didn't dare refuse to sign a Captive Nations Member who has been more helpful to first! Week Proclamation as he has done in the past, said a member of the Americans to me during my first term in Congress; nor is there anyone whose advice I [From the Ypsilanti Press, July 18, Free Captive Nations at their rally beneath 1980] the Statue of Liberty yesterday. have sought more frequently. More than 200 people listened to speeches KEITH SEBELIUS, the man from DETROIT ETHNIC FESTIVAL and watched the colorful folk dances in a Kansas' big First District, consistently DETROIT.-The city's summer-long series shady area surrounded by posters and ban displays sound judgment in all of his of ethnic festivals will continue this week ners from at least 10 of the 34 captive na endeavors, and I have quickly learned end with the captive nations festival. The tions. festivals are held at Hart Plaza on the De Dr. Valentina Kalynyk, president of the to consider his thoughts and deeds as troit riverfront, and feature ethnic food, organization for the last 16 years, empha being unerringly consistent with the drink, music and entertainment. Admission sized that the free world must stand up to best interests of his Kansas constitu is free. Moscow's aggression in order to survive. ents and the Nation. His leadership, Hassan Durrant, claimant to the Afghan advice, and views in the areas of agri [From the Cincinnati Post, July 25, 19801 throne, called on Carter to recognize a pro culture and national parks have been DON'T FORGET ESTONIA, EXILES PLEAD visional Afghan government. invaluable to me, as I am sure they "If the U.S. government can afford to give have been for other Members of Con $123 million to leftist Nicaragua, it can cer Eric Soovere calls his homeland, Estonia, tainly afford to assist our cause," he said gress. a nation of slaves. and was applauded loudly. KEITH SEBELIUS has brought many For 700 years, said Soovere, the country's Another Afghan, Dr. B. A. Zikria, warned fine qualities to this body-dedication, rule changed hands as outsiders vied to cap that the Soviets will seal the Pakistan and leadership, conscientiousness, and in ture its vulnerable Baltic Sea coastline. The Iran borders after the Olympics and will tegrity. The people of Kansas and the Estonians were ruled by the Danes, the Ger then work to destabilize those countries. Nation have good reason to say to mans, the Poles, the Russians and the "Afghanistan is not yet a captive nation," KEITH: "Good job." Swedes, but the nation's identity survived. he said. "It cannot be digested by the Soviet I am, therefore, very pleased to join Soovere and his wife, Leili, now Clifton Bear. Afghanistan will force the regurgita residents, believe the 1940 Soviet takeover tion of all the captive nations." those people and not only express a re of Estonia began the cultural genocide of The former ambassador of Taiwan, K. C. sounding good job to KEITH, but also their native land. The country became a re Dunn, now director of the Coordination to express my best wishes to him as he public of the USSR. Council for North American Affairs, spoke retires from Congress. Since we will all Although Russian may have replaced the of his small country as the hope for many miss his fine qualities in the House, we native language in Estonia's schools, the mainland Chinese. hope he visits this Chamber frequent Sooveres insist the individuality of their "Millions of people in communist China ly in the years ahead.e country should not be allowed to fade. They look to free China to save them," he said. tell their story today because they believe Lubomir Ivanov, vice president of Ameri Cincinnatians don't recognize the signifi cans to Free Captive Nations, immigrated SOUTH BOSTON cance of the Soviet invasion of Afghanistan. here in 1944 from Bulgaria after working "We felt we had to tell the world and Cin underground for two years in the Bulgarian cinnati that this (Afghanistan> is nothing National Front, opposing the Communist HON. JOE MOAKLEY new. This happened to the Baltic States," takeover of his country. He claims the orga OF MASSACHUSETTS said Mrs. Soovere. nization still maintains direct contact with Tuesday, August 19, 1980 The Afghanistan crisis prompted creation representatives in many Bulgarian towns. in Cincinnati of the Joint Committee of "Hope depends on America," he said, con e Mr. MOAKLEY. Mr. Speaker, re Soviet Occupied Nations. The group, which demning detente as a policy which helps the cently the Quincy Patriot Ledger car- August 19, 1980 EXTENSIONS OF REMARKS 22023 ried an outstanding article by a gifted part, in public housing. Other blacks came counting for inventories. H.R. 7851 is writer, Kathleen Kroll. Ms. Kroll has in great numbers to swim in Pleasure Bay, designed to make the last-in first-out painted a moving and troubling appeal to fish at Castle Island. In the preface to the book, our col in Afghanistan. They are also trying their Phil Blazer doesn't fit the mold of a league, Representative RICHARD T. very best in stirring up troubles between the modern-day activist. He's quiet, soft-spoken, United States and the Soviet hoping to fish with boyish good looks and a casual, friend ScHULZE, makes this comment about in troubled waters when the two super ly manner. There's no fire in his eyes. No granting most-favored-nation status to powers should become involved in conflict. tell-tale signs of impassioned commitment. the People's Republic of China: Moreover, the Chinese Communists are He could be the nice young lawyer or stock The granting of MFN to China represents also using the United States to subdue their broker who just moved in down the street. another misstep along a disastrous foreign internal unrest and revolt. Hua Kuo-feng But Blazer, a 36-year-old native of Minne policy road as we refuse to recognize the might use his meeting with President sota, is, in his understated way, a force to be clear lessons of aggressors throughout histo Jimmy Carter in Tokyo today to strengthen reckoned with-as some of our top-level gov ry and seek to appease every new militant his position in the Chinese Communist ernment officials and media celebrities are totalitarian power. Once these powers gain power struggle. All such possibilities render most aware. what they desire from the West, they tend the recent warning by Senese more signifi It was Blazer who organized the two to drop their words of peace and resume cant and timely. Free people everywhere "Black-Tie Protest Dinners" in opposition their aggressive stance. We built the Soviet should beware of Chinese Communist tricks to the Carter Administration's Mideast poli Union into a powerful adversary for the and deceits.e cies. It was Blazer who ran interference for Free World through Western technology the "Stop It Now!" Skytrain to Skokie, Ill., and Western financing; we appear to be fol protesting the appearance of the neo-Nazi lowing the same mistaken course regarding PERSONAL EXPLANATION National Socialist Party of America. And it Communist China. was Blazer who accompanied the Rev. Jesse I would like to enter into the CoN Jackson to Israel in hopes of "neutralizing" HON. EUZABETH HOLTZMAN what he felt to be Jackson's misguided in GRESSIONAL RECORD an article entitled OF NEW YORK volvement in the Middle East. "Warning About Mainland China" IN THE HOUSE OF REPRESENTATIVES On most questions of concern to the in which appeared the July 10, 1980, Tuesday, August 19, 1980 Jewish community-locally, nationally and edition of the China Post: internationally-Phil Blazer is right out [From the China Post, July 10, 19801 e Ms. HOLTZMAN. Mr. Speaker, I front. And he has a multi-media foundation WARNING ABOUT MAINLAND CHINA was unable to be present on June 12 to help lead the attack. Blazer is the editor and publisher of Israel A recent report issued by the Council on and 13. Had I been present, I would have voted as follows: Today, a national Jewish community news American Affairs of Washington, D.C. warn magazine which he founded in January of ing the U.S. government and American busi On June 12: Rollcall 314, no; 1973. He's the host and executive producer nessmen not to move too quickly to seek of a weekly "Israel Today" television pro closer political ties with Peiping should be Rollcall 315, yes; gram, which airs locally on Channels 18 and heeded. Rollcall316, no; 52. The 80-page report also warned the Rollcall 317, yes; But Blazer's longstanding base of oper United States and other free world nations Rollcall 321, no. ations is his radio show, once again entitled to use caution in providing Red China with On June 13: "Israel Today," which has been on the air advanced technology, science and agricul for 15 years now, currently broadcast on tural products. The writer of this lengthy Rollcall 326, yes; Rollcall327, no.e Sundays at 10 a.m. on KIEV-AM <870) and report, Donald Senese, is a senior researcher at 10 p.m. on KFOX-FM (93.5> in Long with the House Republican Study Commis Beach. sion. He said in the report that if Western PHIL BLAZER OF "ISRAEL Essentially, the radio version of "Israel nations rush into Red China just for cash TODAY" Today" is a compendium of Israeli and and contracts without "reasonable assur Jewish music, comedy and live news broad ances" of Peiping's peaceful uses of its tech casts from Jerusalem and Washington, D.C. nology, "they may find disappointments". HON. HENRY A. WAXMAN But the format is flexible enough and Senese warned that "They may find that OF CALIFORNIA Blazer's identity and credibility is such that Red China will not pay the money promised IN THE HOUSE OF REPRESENTATIVES he can focus on the various issues that con through suspension or cancellation of con cern him, soliciting support from his audi tracts". It is already common knowledge Tuesday, August 19, 1980 ence in the process. that the Chinese Communists have resorted • Mr. WAXMAN. Mr. Speaker, for 15 "I use my radio show very heavily," Blazer to such suspensions or cancellations of says. "There's so much immediacy and mo many multi-million-dollar contracts con years Phil Blazer has hosted "Israel Today," a radio program broadcast in bility to radio. I've done my show from deli cluded with U.S. businessmen who have to catessens from a bicycle, I can be anywhere. suffer their losses in silence as any adverse Los Angeles devoted to music, news, But the first time I actively solicited listen publicity on those deals will hurt their and public affairs programing about er support was in 1973 to protest the Arab future chances of doing business with main American Jewry, Israel, and the oil blackmail." land China. Middle East. Phil Blazer brings much The form of Blazer's protest was to ask The report also noted that "Even worse, more than entertainment to his enthu his audience to tear up their Standard Oil they may find that they have built up a credit cards in response to Standard's Board nation economically and militarily that siastic and devoted listeners. His pro grams are always informative and pro chairman sending a letter to company stock might be a rival in trade or an adversary in holders urging that they be more friendly to international relations". It also categorically vocative, making a major and distinc the Arabs. refutes the playing of the "China card" to tive contribution to Jewish culture in "I had no idea if I'd even get one torn counter the Soviets as a dangerous policy this country, as well as to our under credit card back," Blazer said. "But there because basically both countries are Com standing of the issues of importance to ended up being thousands of them coming munists opposing democracies, capitalism Israel, the Middle East, and world in, piled up and looking very impressive. and political freedom. It described the idea Jewry. "Israel Today" exists not only That was the first time and it was extreme of a vast "China mainland market" opening ly successful." for U.S. investors as "a myth" and a lure to on the radio, but in a national maga Later in 1973, Blazer took to the air again gain support for increased Red China trade. zine Mr. Blazer founded some 7 years to ask for some financial aid to smuggle a He declared that "There is no mainland ago, and in a television program which Torah into a Leningrad synagogue. This market of 900 million people. The China is broadcast weekly. Both have also came about after Blazer had read that the mainland market is not an entity ... and enjoyed outstanding success. I want to Soviet synagogue had its 12 Torahs confis- August 19, 1980 EXTENSIONS OF REMARKS 22027 cated. And once again he was successful H.R. 7702 eral claiins be allowed reasonable though not without some cloak-and-dagger access. intrigue at the Soviet customs port. HON. JIM LLOYD The threat of fire in this area is a "We'd asked Rabbi Ellis Sultanik to be OF CALIFORNIA big concern to persons who live close our courier," Blazer said, "but the news of what he was going to do had apparently IN THE HOUSE OF REPRESENTATIVES by, and for that reason I included spe traveled ahead. They asked him, 'Are you Tuesday, August 19, 1980 cific fire suppression and presuppres the rabbi who's smuggling the Torah into sion language in my Sheep Mountain • Mr. LLOYD. Mr. Speaker, yester Wilderness bill. While firefighting Leningrad?' But then he said, 'What's a day's passage of H.R. 7702, the Cali Torah?' So they stamped his passport and fonlia wilderness bill, is of particular measures are permitted in wilderness let him through. That synagogue still uses importance to residents of California's areas, I wished to eliminate any doubt the Torah we smuggled in." 35th Congressional District, as the bill as to the authority of the Forest Serv With this precedent, "Israel Today" has establishes a 44,600-acre Sheep Moun ice to take steps to lessen this threat. been on the scene for some historic occa tain Wilderness in the Angeles and Consequently, I am pleased that H.R. sions over the past several years-including San Bernardino National Forests. This 7702 contains language authorizing the first Begin-Sadat meeting in Israel in area is entirely within the district I necessary fire control activities in wil 1977. represent and reflects the proposal derness. "That was an unbelievable experience," contained in the bill, H.R. 5541, which The establishment of a Sheep Moun Blazer said. "While I was watching Sadat's I introduced last October. tain Wilderness enjoys broad commu plane descending I was standing next to an Ility support from the many people Israel cameraman who had spent four years One of my first acts as a Congress man in 1975 was to introduce a bill to who recognize the precious resource in an Egyptian prison. And there he was, we have in this region and want to see speaking Arabic to a group of Egyptian establish a 52,000-acre Sheep Moun journalists as if nothing had happened. It tain Wilderness Study Area. I'm very it preserved for their children to was one of the most moving experiences of pleased that 5 years later, following enjoy. All too often we have been left my life." the establishment of a study area and to cope with the problems caused by Two years later, Blazer made some history an extensive review of its resources by the selfish shortsightedness of individ himself as he broadcast an edition of "Israel the Forest Service, the process is near uals and groups who have ruthlessly Today" from Radio Cairo via satellite, open ing completion. exploited the land and mutilated its ing that show-tongue firmly in cheek The terrain of this land is very steep natural beauty. Fortunately, there with a rendition of "My Yiddisher Mama" and rugged, much of it covered by have also been persons who were far sung in Arabic. The thought of that mo chaparral. It is laced with narrow can sighted enough to set aside areas of ment still brings a smile to his face. yons, which contain several fine trout natural beauty as a legacy for us, and Blazer's broadcasting career actually streams. Located in the San Gabriel who know that if they did not do it, began on a more conventional note. While Mountains, the highest peak, Mount then future generations might never still in high school, Blazer hosted a jazz pro San Antoruo, juts above the timber have the chance. gram on KVFM-FM in the San Fernando line to provide a breathtaking view I feel a strorig personal commitment Valley. "I just walked in cold and asked for from the desert to the Pacific. This to the establishment of the Sheep a job." he said. "Johnny Magnus was my Mountain Wilderness and urge the idol and I tried to pattern myself after area is also a valuable watershed for the nearby urban region. But the Senate to give their approval to the ~im." crowning jewel is the herd of Nelson 44,600-acre wilderness as passed by the While attending Minnesota University, bighorn sheep which ranges over this House.e Blazer hosted another jazz program, worked rugged land only an hour and a half in radio sales and even spent some time at a trail-blazing rhythm and blues station, from downtown Los Angeles. EXPORT-IMPORT FOLLIES whose general manager was none other This close proximity of a wilderness than Wolfman Jack. area and its herd of wild sheep to an HON. RON PAUL urban, heavily populated area such as It was also during this period that Blazer Los Angeles is almost miraculous, and OF TEXAS first got the idea for a program directed a particularly important reason for IN THE HOUSE OF REPRESENTATIVES toward the Jewish community. "I was driv Tuesday, August 19, 1980 ing around one day, listening to this radio preserving it as a reminder of south program that was hosted by a local rabbi ern California's wilderness heritage, • Mr. PAUL. Mr. Speaker, one of the and broadcast in Yiddish, and something and as a refuge from the noise, conges most flagrant examples of corporate just clicked. I thought why not do a similar tion, and pressure of city living. But in welfare is the Export-Import Bank. In kind of show but with a younger, less ortho order to enjoy wilderness in the its August 25 issue, Fortune magazine dox point of view." future, we must protect it now, and we published an excellent article on Ex And thus was born "Israel Today," "Actu must be sure to set aside an area large imbank by a young economist at Ober ally, the basic format hasn't really changed enough to remain viable in the face of lin College. that much in 15 years," Blazer said. "It has urban expansion pressures, for once I would like to call this article to my four elements-Israeli music, Jewish music, this land is gone, it is gone forever. colleagues' attention, and urge that we comedy and the news. I stress the comedy At the same time, care has been cease the process by which foreign because that's what attracts the younger taken in as far as possible to avoid countries get goods, international cor audience and also because the Jewish com conflicts with established uses. A trail porations get money, and the Ameri- . munity enjoys laughing at itself." to the top of Mount Baden-Powell was can people get the bill. With Blazer's increased activism, though, excluded because of the popularity of EXPORT-IMPORT FOLLIES also came a newfound responsibility. "It's this hike with local Boy Scouts. Paiute (By Steven E. Plaut> often misconstrued that I speak for the Camp on the eastern boundary was ex The Export-Import Bank continues to Jewish community," Blazer said, "when in cluded to allow continued access by make headlines and generate controversy, fact I'm just speaking for myself. But I do offroad vehicles. - And the northern · but nobody in Washington, D.C.-at least, realize that I have the media-the newspa boundary along Blue Ridge was ad nobody who makes headlines-seems to be per, the television show, the radio pro justed southward to avoid any disturb asking the right question about this remark gram-so I have to be very careful when I ance of plans by the Mountain High able institution. The question is whether made a decision. ski area to locate a snowmaking reser the bank should be put out of business. The possibility that it should be is one "I've lost a few nights' sleep over some of voir there. All current ski areas were that few policymakers take seriously. The those decisions," Blazer continued. "But I've excluded, including Mount Baldy's lift Export-Import Bank, a federal agency that been lucky in this respect. If I had to make lA, which has not yet been construct finances exports with low-cost loans, is one any of them over again, I'd do exactly the ed. In addition, the Wilderness Act re of the most sacred of all cows in Washing- same. I haven't regretted one thing."e quires that all private lands and min- ton. In the current period of budgetary 22028 EXTENSIONS OF REMARKS August 19, 1980 stringency, one ·of the controve-rsies about By law, Eximbank would indeed go out of some foreign buyers were getting American the bank concerns the extent to which its business if its charter were not renewed by money at 8% or less. lending authority for 1980 and 1981 should Congress every few years. Testimony at the However, the bank's supporters do not be increased. The view that it should be periodic congressional hearings to extend\ really rest their case on the claim of profit held to the 1979 level of $3.7 billion was re the charter has begun to follow a predict ability. The case ultimately rests on a pre cently denounced as "outrageous" by Sena able pattern. Friends of the bank-from the sumption that the bank's activities are tor Jacob Javits of New York, who appears bureaucracy and from special-interest boosting exports and therefore U.S. eco to have a sizable legislative majority on his groups that benefit from Eximbank financ nomic growth. Given this presumption, it side. Secretary of State Edmund Muskie ing-troop in to testify in favor of continu often seems natural to Eximbank's support told the Foreign Policy Association several ing and expanding the bank's programs. On ers to equate success with the amount of weeks ago that there was a "serious short the other side are academic economists who money being shelled out. Moore constantly age" in Eximbank lending authority and raise questions about the bank's purpose points out that when he entered office, the added: "That means fewer American jobs and call for eliminating some or all of its bank had only $2 billion of commitments and reduced American profits." programs. outstanding, while today the figure is over The most intriguing of all the controver At the most recent hearings, in 1978, Pro $14 billion. In the 1979 annual report, here sies at the bank this year centered on some fessor Arthur Laffer, father of the Laffer marks, "It can be said that the difference in events suggesting that its high minded con Curve, said that he could see no justifica these figures is one measure of our success cern for exports occasionally gets mixed up tion for Eximbank's activities and suggested in ... implementing our competitive poli with low-minded political considerations. It "an activist policy of abolishing the Exim cies." appears that one day in February, Rupert bank." Favorable testimony came from rep In the early postwar years, the bank's sup Murdoch, the Australian businessman, resentatives of Boeing, the Aerospace Indus porters could argue that it had an impor spent the morning at the Eximbank offices tries Association of America, Westinghouse, tant foreign-policy role-in helping Europe pleading for cut-rate financing for some the Machinery and Allied Products Insti to recover. Today, the bank is in general not Boeing jets. tute, and others. concerned with foreign policy; however, it Murdoch is the principal owner of Ansett does occasionally tum down loan applica Airlines, one of Australia's largest carriers, ARE TRACTORS REALLY TOUGHER? tions because of State Department objec and he had his eye on several hundred mil The case for Eximbank is based on two tions to, say, an applicant's human-rights lion dollars' worth of jets, including a questionable assumptions. One is that the record. number of wide-body 767s. As he left the American financial markets, which are ca What about the argument that those bank's offices, he indicated that he was pable of mobilizing billions of dollars for mounting export subsidies are creating eco going off to have lunch with President such huge projects as the Alaska pipeline, nomic growth? The argument is a fallacy, a Carter. Three days later, Murdoch's New are curiously incapable of financing exports holdover from merchantilist days. When Yo\"k Post urged its readers to vote for of tractors, say, and aircraft. The second as the U.S. government reduces the cost to a Carter in the impending New York Demo sumption is that the government is capable foreign buyer by subsidizing a deal, the U.S. cratic primary election. One week after this · of running a bank. is not creating wealth-it is giving away endorsement, the Eximbank approved a pre Eximbank directors have long asserted wealth. It is in effect giving away resources liminary commitment to finance most of that their own role is essential, but their that are built into the product. The foreign Ansett's 767s with a $200-million loan at 8%. evidence is unpersuasive. The directors consumer gets a windfall financed by U.S. This was less than half the prevailing rate often point to the special kinds of risks in taxpayers. on commercial paper and less even than the some export ventures, such as exchange ENGINEERS ON WELFARE cost of the same funds to Eximbank itself. risks and the risk of defaults related to po In practice, of course, much of the wealth The bank also agreed to finance some 727s litical upheaval. But our capital markets being transferred does not go abroad; it goes and 737s that Murdoch wanted at rates routinely finance risky ventures. And if a from one class of Americans to another. Ex around 8.4%. The approval of Murdoch's loan were really so risky that no private porters generally raise prices and capture money was rushed through so quickly that lender would touch it on any terms, one part of the Eximbank subsidy for them the bank's staff, which normally spends must question the wisdom of using a govern selves. Eximbank may be viewed as a large weeks analyzing proposed loans, had only a ment agency to finance the project with · welfare agency, handing out largess to few days to review the deal. public funds-in effect forcing the taxpayer export industries. It plays a sort of reverse A GEORGIA CONNECTION to bear those risks. Robin Hood role when, for example, it The notion that there might be a political transfers wealth to high-income aircraft en- dimension to Eximbank lending decisions HITTING THE TAXPAYERS TWICE gineers from middle-income taxpayers. was reinforced by some details spotlighted Eximbank directors have gone to some Finally, it is not even clear that all these during Senate Banking Committee hearings lengths in denying that the taxpayer bears income transfers are really boosting ex on the Murdock case. The bank's chairman, any costs. They argue that the bank is an ports. What the bank calls "additionality" John L. Moore Jr., turns out to have been a independent, profitable agency, and does the increase in U.S. exports attributable to partner in an Atlanta law firm that had not receive a dime of tax revenue. The argu- its own activities-is a very tricky thing to long been politically supportive of both the ment is a bit disingenuous. Eximbank gets measure. Eximbank reports tend to take ad President and Bert Lance. In the months its money by borrowing at government rates ditionality for granted, endlessly linking after the 1976 election, Moore had served as from the Treasury. The funds received by bank loans to the volume of exports being the President's special counsel on ethics and Eximbank should be viewed as another of supported and the various numbers of jobs conflicts of interest, and in that capacity he those "off budget" sources of federal spend- presumably represented by this volume. had cleared Lance for appointment as direc ing that camouflage the true magnitude of While computing Eximbank's addition tor of the Office of Management and the government's deficit-but that must ul- ality with accuracy would be difficult, if not Budget. Although he lacked any training in timately be made up by taxpayers. impossible, one may nevertheless venture economics or banking, Moore was soon After getting its money from the Treas- . some guesses as to magnitude. Additionality thereafter named president and chairman ury, the Eximbank hits the taxpayers a should measure the increment in U.S. rev of Eximbank. second time by earning an uneconomic enues from exports, not the increment in Other members of the bank's staff also return on the money. The bank's figures in- the number of physical units exported. If seem to have few visible qualifications but · dicate that its return on net worth was just· we export more physical commodities but were well placed politically. An anthropolo over 5% in fiscal 1979-less that the return . get less income in the process, we will end gist named Matt Schaffer, who had worked on passbook savings. Even that 5% figure is up less able than ever to pay for our 1m hard in the Carter campaign but who had suspect. As the chart on the facing page ports. essentially no business or economics back makes clear, the bank's reported income Export subsidies undoubtedly increase the ground, was originally hired by the bank to would have been much lower in recent years number of physical units exported. But not be a special assistant to Moore. Later, in if it reflected the sharp increases in delin- all subsidies cause export revenues to in credibly, he became senior vice president of quent accounts. . crease. Whether revenues increase or de- policy, an appointment that says a lot about Perhaps the simplest way to view the cost crease depends on the elasticity of demand policy formation at the bank. What he actu of running the bank is to contrast the inter- for our exports. If there is zero elasticity ally did in this capacity is something of a est it earns and the interest if pays out. In that is, the buyer's decisions on volume are mystery. Schaffer, who recently left the the Moore era, the spread has generally unaffected by the price-every dollar of sub bank, has refused to be interviewed about been negative. In the first quarter of 1980 it sidy simply reduces the amount the foreign the subject. reached minus 4.77% on new loans-an all- buyer must spend by one dollar, and u.s. While many politicians are pained by the time record. In the 1978 annual report, export revenues fall in tandem. Indeed, any evidence of politicization at Eximbank, just Moore boasted: "Although the prime rate elasticity below 1.0-the level at which about all of them defend the bank's overall rose dramatically last year, the average cost volume expands just as rapidly as price de record and take it as axiomatic that the [to borrowers] of our loans decreased from clines-reduces our export revenues. bank's central purpose is laudable. Who, 8.53% ... to 8.25%." More recently, when Well, what are the relevant elasticities? after all, would deny that it is desirable for consumers and other businessman were For many years the commodity most highly the U.S. to increase its exports? paying up to 20% or more to borrow funds, subsidized by Eximbank has been aircraft, August 19, 1980 EXTENSIONS OF REMARKS 22029 which generally receives more than one exports are more in demand and more valu ment of Agriculture regulations. It is quarter of all the bank's loans and guaran able, we can buy those imports at lower the intent of this legislation to tees too. I'he bank has helped finance 51 foreign cies involved have different inflation rates; virus. nuclear reactors, the demand for which is the nominally uniform 8% conceals sizable But John D. -villari, representing New almost certainly inelastic. Together with differences in real rates. An 8% rate in rela Jersey garbage feeders, called "enactment aircraft, these account for almost half of all tively stable German or Swiss currency of a federal law both unnecessary and an the bank's credits. Eximbank has also devel Inight be at or above market rates, while the added expense to taxpayers." Robert oped a reputation for being easy to tap for Eximbank loan could be several percentage Horton, spokesman for the New Jersey De financing cost overruns, the additionality points below U.S. rates. Instead of being partment of Agriculture, said they cannot for which is zero. A GALLING ILLUSION really do what it's intended to do." Gene Similarly, foreign buyers who have already Griff Ellison, vice president of Eximbank Schlichman testified that National Food placed orders for American goods sometimes for public affairs, explains this mindless and Conservation Through Swine receive low-interest loans-the additionality pursuit of nominal parity as necessary be also considers the bill unnecessary. here too being obviously zero. Stephen H. cause of the naivete of businessmen: "De The bill, H.R. 6593, introduced by Rep. Goodman, a former senior vice president for spite the very sound econoinic reasoning Paul Findley the support of the Walgren Bill Alvin Glosser, president and chief execu supply of rental housing. Federal lead tive officer, said the company's ads were, ership in regulating the conversion 4358 is owed to us as handicapped citizens of this country. placed in 21 papers and reached an estimat process in order to preserve and create Respectfully yours, ed 900,000 persons. new rental opportunities clearly has DARRYL F. STINGLEY .• Wal-Mart began its program in the spring, ample policy precedent. Since local with a full-page ad in 15 papers throughout and State action has been minimal and the company's trading area. The ad urged inadequate, national legislation must RALLYING SUPPORT FOR COAL the development of synthetic fuels and nu clear energy, as well as coal. Chain cashiers be passed now to halt displacement also inserted a four-page pamphlet in shop and prevent the demise of the rental HON. JOHN P. MURTHA pers' bags. housing industry. OF PENNSYLVANIA Officials of the three chains said the Last year's housing bill included a IN THE HOUSE OF REPRESENTATIVES effort, although individually planned by the mandate that HUD conduct a nation companies was conceptualized at an NMRI wide survey of the condomania phe Tuesday, August 19, 1980 policy session held last January in St. Pe nomenon. This report was recently re e Mr. MURTHA. Mr. Speaker, I want tersburg, Fla. to take a moment to congratulate Glosser said he hoped the campaigns leased and its findings are less than would convince representatives from areas clear. I feel it is of national impor Hills, Glosser Bros., and Wal-Mart for outside the nation's coal-producing regions tance that the Congress not forget the a concentrated program to inform of the necessity for a change in the coun seriousness of this problem. I urge my Americans about America's energy try's energy policy. colleagues and the appropriate House problems and the need for more use "We're not just doing this because it's committees to deal with the conver- for coal. good business practice" he explained, "We August 19, 1980 EXTENSIONS OF REMARKS 22031 firmly believe that what we're saying is in the 1960s, and, symptomatic of our atro had been flown halfway around the world in good for the country."e phy in this area, can't stage effective train 13 hours on the Concorde; plied with beluga ing because of a prohibition against gas in caviar, lobster, steak, Dom Ruinart cham open-air situations. What defensive meas pagne, and Cuban cigars; plopped down on OBSOLETE EQUIPMENT ures we have taken concern warnings not this 227-square-mile island 85 miles from protection. the equator in the Malacca Straits; and Chemical warfare doesn't rank high as a feted with Chinese banquets for four days. HON. ROBIN L. BEARD political favorite. Appropriations for expen We were guests of the rugged society-as OF TENNESSEE sive hardware are far more popular. Yet, as well as of British Airways and Singapore IN THE HOUSE OF REPRESENTATIVES recently demonstrated, chemical warfare Airways-and recipients of such parapher Tuesday, August 19, 1980 looms too-real to be ignored. After all, few nalia as alarm clocks, recipe books, bath tactics are more economical, efficient, and robes, and splits of Mumm's Cordon Rouge, • Mr. BEARD of Tennessee. Mr. terrifying than this grim recourse. It's time which would appear, unbidden, in our rooms Speaker, I commend to your attention we remembered the unglamorous but all in the Hilton at odd hours. Also, we were re a recent Wall Street Journal editorial too-essential things.e cipients of masses of statistics, bushels of on the use of chemical warfare by the facts. Between bites of sweet-and-sour U.S.S.R. and the obsolete equipment prawns and draughts of Tiger beer, we SINGING THE PRAISES OF TAX learned, for example, that: Singapore's in used by American soldiers for defense CUTS AND GROWTH IN SINGA flation rate last year was 4.0 percent, its un against chemical warfare. PORE employment rate, 3.3 percent. indicate that the Russians are using HON. NEWT GINGRICH The growth in real GNP was 9.3 percent, chemical warfare, American soldiers compared with 2.0 percent for the US, 4.3 are still relying on a 24-year-old gas OF GEORGIA percent for West Germany, and 6.0 percent mask which is virtually useless. Con IN THE HOUSE OF REPRESENTATIVES for Japan. Manufacturing volume was up 24 gress can no longer ignore the fact Tuesday, August 19, 1980 percent in 1979 over 1978; exports were up that our military is unable to protect 35 percent. e Mr. GINGRICH. Mr. Speaker, what Per capita income is around $3,000, second itself against chemical warfare. country has a population the size of highest in Asia after Japan. The infant mor The article reads as follows: Baltimore's and a GNP that's 23d larg tality rate is lower than Great Britain's. HOLDING OUR BREATH est in the world? What country has With a population of 2,362, 700-roughly For two decades now the U.S. has been re given a royal funeral for the Phillips the size of greater Baltimore-Singapore luctant to take chemical warfare seriously, Curve, displaying in 1979 an inflation ranks 23rd in the world in GNP. And it's the perhaps because the Geneva Protocol of of 4 percent, an unemployment rate of third largest port, bigger than New York. 1925 limits its use to instances of retaliation. 3.3 percent, and a whopping 9.3 per There are 89 banks here, 76 of them for Either the Soviets view Afghanistan, Cam cent increase in real GNP? eign. In 1979 they had eight billion dollars bodia, and Laos as matters of "retaliation" in loans outstanding, an increase of 60 per or regard the protocol with a sneer. Either The country is Singapore. It has cent in two years. There are 3,176 manufac way, reports have filtered out of possible people moving out of poverty at a turing establishments, an increase of 20 per Soviet use of chemical weapons in those quick pace, while 60 percent of its citi cent in two years. places. zens pay no taxes. Industry and enter All of this gushing commerce has occurred The status of U.S. chemical-warfare forces prise, saving and investment-all are in a country with a rotten climate-hot and thus takes on renewed importance. They flourishing. The nation-state of Singa humid year-round with the sun straight also become a source of distress. Consider, pore is not perfect, but they believe overhead at 7:30 a.m.-and no natural re for example, the gas mask: small, ugly, but they can solve their problems and sources. Singapore's most important indig indispensable. According to a recent article enous export is orchids; the island imports in Defense Week, the ones on which we they are solving an amazing amount of nearly all of its food except pigs and poultry depend around the world were first em them. and a wonderful fruit called durian, which ployed in 1956 and haven't been changed I commend to my colleagues an arti smells vile but is supposed to be a powerful since. Which isn't particularly cheering cle by James K. Glassman in the July aphrodisiac. Sir James Scott wrote of durian when one considers that they are best de 26, 1980, edition of the New Republic, in 1882: "Some Englishmen will tell you scribed as virtually useless. Wearing eye entitled "Singapore Swing." Glass that the flavour and odour of the fruit may glasses can cause the mask to leak, and a man's article is witty and full of in be realized by eating a 'garlic custard' over a three-day stubble means the mask won't fit. sights. Singapore should be studied by London sewer." Never has neatness counted more. I'll admit that I came to Singapore the Design problems also prevent the effective any American who would like to see ologically prepared to enjoy what I saw. use of such standards as the M16 rifle South Korea, Taiwan, Hong Kong, and engineering stage. Its creators at the Army's Mr. Tan, a refugee who had come to Singa now Sri Lanka are thriving on low taxes and Human Engineering Laboratory at pore from Sumatra 30 years ago, was not on hospitality to multinational corpora Edgewood Arsenal haven't a clue as to when merely chairman of the Tourist Promotion tions. Singapore is certainly the most seri it will be ready. Board; he was director of National Iron and ous-and perhaps the most successful-of Our inadequacies do not end here, howev Steel Mills Ltd. and Allied Chocolate Indus this lot. There have been two personal er. According to William Schneider, a de tries Ltd.-not to mention Hong Leong Fi income tax cuts.in the past two years. The fense specialist at the Hudson Institute, nance Ltd., King's Hotel Ltd., City Develop 50 percent bracket begins at $200,000 of tax while our vehicles, such as tanks and ar ment Ltd., and a few others. Tan I Tong able income, compared with $44,700 in the mored personnel carriers, rumble along per was, in short, an exemplary product of what US, and the top bracket for earned or un usual, the Soviet equivalents are pressurized Lee Kuan Yew, prime minister of Singapore earned income is 55 percent, beginning at and come with a complete set of rubberized for the past 15 years, calls "the rugged soci $300,000, compared with 70 percent at suits. Fortunately, our allies have not been ety," a society that would send chills of de $161,300 in this country. Taxes are low as negligent as we. Britain supplies some of light down the spines of Adam Smith and across the board; more than 60 percent of our forward air bases with what little ad Milton Friedman. the population pays none at all. However, vanced chemical-warfare equipment we own. The six of us around the table that night it's not just the tax rates themselves, but The USSR maintains, trains, and deploys in a private dining room at the Oberoi the government's attitude toward taxation some 60,000 to 80,000 chemical-warfare Palace Hotel were not exemplary products that's so refreshing. Here we have Mr. Goh troops, a sharp contrast to our 3,000. We, in of the rugged society. In fact, we were a Chok Tong, minister for Trade and Indus fact, abandoned our chemical-warfare corps half-dozen American business reporters who try, in a speech he gave last March entitled 22032 EXTENSIONS OF REMARKS August 19, 1980 "We Must Dare to Achieve" ard, "if someone tion and diversity make life richer and a lot diocre and the indolent. . . . The results is physically able to work but he just won't? more fun. It doesn't work that way. Consid have been ruinous for economies like Brit Do you let him starve?" er, for example, the press. It's licensed and ain. Overemphasis on dividing up the na Mr. Yeo, a small, polite man, hissed, timid, and it runs stories on the front page tional cake equally has ended up in smaller "Yes." Then we all went next door to are like this one: pieces of a non-growing cake." volving rooftop restaurant for shark's fin ACS BID TO SNUFF OUT SNOBBERY-BY SIT MENG The architect of this tax policy, and of soup, sweet bean-paste pancakes, and more Tiger beer. CHUE practically everything else in Singapore, is Anglo-Chinese School students were yes Lee Kuan Yew, founder of the People's Even though there are no price controls, Action party 25 years ago and the nation's currency controls, tariffs, or requirements terday issued · a set of 13 rules designed to leader from 1959, when it won autonomy that the government take an equity share of snuff out social snobbery when they re from Britain, through 1963, when it joined private companies, men like Mr. Yeo guide turned to their classrooms for the new Malaya for two acrimonious years as part of the economy. As Dr. Goh Keng Swee wrote term.... Malaysia, until today. Robert Shaplen calls in a 1977 government volume entitled "So The rules will apply to students of the Lee, who was educated at Cambridge, "the cialism That Works": "Taking an overall junior college, the secondary school and most intellectual, astute, irascible, and en view of Singapore's economic policy, we can both primary schools. durable" of all the leaders of Southeast see how radically it differed from the lais They will come into effect on July 7 and Asia. There is no personality cult surround sez-faire policies of the colonial era. These will, among other things, ban the use of ing him-1 never saw a picture of Lee during had led Singapore to a dead end, with little briefcases, "expensive" wrist watches, tinted my visit to Singapore, though the Straits economic growth, massive unemployment, spectacles , Times, the English-language daily, has a wretched housing, and inadequate educa jewelry or other decorative items and "ex penchant for running articles that begin tion. We had to try a most activist and in pensive" writing instruments. "Prime Minister Lee Kuan Yew yester terventionist approach." Sumptuary laws! Perfect for the last bas day .. .." Lee's popularity is the result not tion of the Protestant ethic, a country that Well, not all that activist. What the gov bans Playboy and fines people $250 for only of his early suppression of opposition ernment did was to set up huge industrial smoking in elevators. Singapore is not all to the PAP but of the munificent products parks, and to lease the land for factories. It of his regime. Lee's economic policies bear a also gave tax breaks-including holidays of like this. Paul Theroux, who lived here for striking resemblance to Social Darwinism. up to 10 years from paying the corporate three years, wrote in The Great Railway Several years ago, for example, Lee said levy of 40 percent-to industries it particu Bazaar that there is a fringe, latterly some frankly that "growth must come before larly wanted to encourage. Right now it is what narrower that it was, where life con sharing." Still, as income rose, a dramatic favoring businesses that are not labor-inten tinues aimlessly, unimpeded by the police or redistribution of wealth took place: between sive and not polluting and that provide jobs the Ministry of Technology. On this fringe, 1966 and 1973, those earning the lowest in requiring technical skills-in other words, which is thick with bars, people celebrate comes gecko loudly gobble a ment in Singapore "socialist." And there are sausage fly. certain traces of the welfare state around. Honeywell, Fairchild, Dunlop, Shell, Mitsu I missed that part of Singapore, and, after For instance, nearly 70 percent of the bishi, Hitachi, and on and on. three days of trying, I gave up my search people now live in public housing projects, There is a good deal not to like in Singa for durian. Now, after the big farewell in which families either rent their apart pore. The central city has all the charm of dinner with Mr. Tan and his steel bars and ments at nominal fees or buy them of culture-unless you're a fan . of movies tion of the Concorde, sipping Remy Martin through a nifty arrangement-borrowing like "Iron Bridge Kung Fu" and TV shows cognac and puffing on a Bolivar and watching the Nile Singaporean equivalent of a Social Security There's a sad paucity of vice here too. The valley slip by outside my window. In a few fund. An older three-room suburban flat transvestites of Bugis Street are harmless. minutes, we cross the Mediterranean, glide sells for around $8,000; a new, five-room And the gorgeous, large-breasted Malay up the Adriatic, coast over Venice and the urban one, $30,000. There are government women who sit in sparkling silks on benches Alps. I am thinking about Singapore: do hospitals and schools Singaporeans, in a manner astonishing to there is no unemployment insurance. Americans, are rule-followers. Their streets HON. ELIZABETH HOLTZMAN Somerset Maugham called Singapore "the and sidewalks are probably the cleanest in OF NEW YORK meetingplace of many races." But the Chi the world-it took me a whole day to find a nese, most of them one or two generations cigarette butt-because there's a $250 fine IN THE HOUSE OF REPRESENTATIVES removed from the mainland, like Lee him for litterers. They cut their population Tuesday, August 19, 1980 self, make up 76 percent of the population. growth rate in half, down to 1.3 percent, Most of the rest are Malays from the jun after the government began sloganeering e Ms. HOLTZMAN. Mr. Speaker, I gles and mountains to the north of Singa that "Two Is Enough" and passing a few tax was unable to be present on May 30. pore, or Tamils from south India with dark incentives for smaller families. And they un Had I been present, I would have skin and lovely, clear, round eyes. Chinese, clogged their downtown streets by requiring voted as follows: especially those with the gumption to emi that cars entering the central business dis Rollcall 276, yes. grate, are said to be particularly hard work trict during the morning rush hour either Rollcall 277, yes. ers, as though it were in their genes. That carry four or more passengers or display a Rollcall 279, no. was essentially the point that the program daily permit costing $2.50 to five dollars. Rollcall 280, yes. "60 Minutes" made in 1978: "The language Then there's the matter of long hair. It's Rollcall 284, yes. here is English," intoned Morley Safer. not illegal, but the people who run the On June 5, I was unable to be pres "The prevailing atmosphere is distinctly country don't like it. There are signs outside Chinese- that highly scrutable Chinese most factories warning, "No admittance to ent for the following rollcalls. Had I business of business, day and night and day, persons sporting long hair," and the official been present, I would have voted: work; always heavily spiced with food-con government tourist publication has this to Rollcall 299, no. stant snacking, noshing, and nibbling be say: "Male visitors are advised to have their Rollcall 300, yes. tween dealing. Nowhere will you find people hair cut if it reaches below the top of their Rollcall 301, yes.e August 19, 1980 EXTENSIONS OF REMARKS 22033 MR. BLUM'S RESOLUTION our heating needs in Minnesota and then Section 11-Congress finds that: only if the tank is above ground and out The Nation's energy is diminishing; side. This practice is causing a gross waste The U.S. has become increasingly depend HON. RICHARD NOLAN of 3-5 percent of all fuel oil used in the ent on oil imports; OF MINNESOTA State of Minnesota. And, be<·ause No. 1 fuel There are serious economic and national IN THE HOUSE OF REPRESl:NTATIVES oil costs more, (greater refining costs> costs security consequences of oil imports; go up for both producer and eonsumer. Biomass can contribute substantially to Tuesday, August 19, 1980 our near and long term energy needs; e Mr. NOLAN. Mr. Speaker, I have 3. REGULATE, DON'T DEREGULATE! The Federal Government. has a responsi· been corresponding regularly with Mr. In Minnesota, when Bell Telephone or bility to encourage the rapid development Charles E. Blum, of Foley, Minn., Northern States Power wishes to increase of all alternative renewable domestic since February of this year for the its rates, the utility must appear before the sources of energy; purpose of assisting him to the great Public Service Commission to justify its re Basic research is needed to achieve maxi quest. The PSC is made up of appointed in· mum biomass energy production; and est extent possible in his efforts to dividuals with consumer input. Most often Because of the multiplicity of biomass promote a three-tiered energy conser rate increase requests can be justified and feedstocks and processes, a comprehensive vation resolution. Mr. Blum has spent are, as such, granted, without placing undue and coordinated Federal program is essen hundreds of hours tirelessly champi burden on the consumer. These companies tial if the full potential of biomass as an oning this resolution in local political are making good profits while under the energy source is to be realized. meetings, State capitols throughout regulation of the PSC. We need such a Com The purposes of the legislation are to the Nation, and in the Halls of Con mission to oversee oil companies as well. In Direct attention to specific applications of gress. This resolution is a nonpartisan fact, six states are currently working on the biomass for various regions of our nation; establishment of such a Commission to con Study new ways to increase the efficiency effort because it seeks only to con trol excessive over-pricing of fuels. A Com of biomass energy production; serve gasoline and home heating fuels mission of this nature is needed desperately Reduce the cost of biomass energy to while reducing inflationary factors at the national level. This is our only means levels competitive with conventional energy caused by spiraling fuel prices. of restoring accountability in the energy in· sources by the end of fiscal year 1986; Mr. Blum's resolution reads as fol dustry. After all, energy is one necessity we Encourage the development of biomass lows: can not do without and, therefore, account energy resources and land which is unsuited ability is imperative. 1. Set a minimum of 92-94 octane for the for cultivating food crops; Encourage the development of methods of lowest grade of gasoline sold. Charles Blum has devoted a great producing energy from agricultural waste 2. Set a minimum Btu standard for maxi deal of time, effort, and research into mum efficiency for fuel oil. products; 3. Establish maximum percentages on this resolution. It is my conviction Coordinate existing biomass energy pro profits of oil companies, refiners, wholesal that we need to look closer at these grams; ers, gas stations and fuel oil distributors. proposals from a point of saving Assure the production of at least 3 quads of energy from biomass by 1986. a question of processing, quality con Section III-The legislation defines the trol and the establishment of a reason examine this proposal closely. To be terms "conventional energy sources". "Fed able profit margin. No new technol sure, we are all affected and must look eral facility". and "public and private ogies are involved. No increase in capi to the best interest of our constituen entity". tal investment is required. The only cies as we come to grips with this Section IV-Research, development, and requirement is cooperation between energy crisis.e demonstration program: The legislation establishes a 6 year pro producers, consumers, and govern gram of hiomass research, development, and ment. demonstration beginning in fiscal year 1981. To expand further on Mr. Blum's SECTION-BY-SECTION ANALYSIS The bill sets forth specific areas for resolution, I offer at this point, a short OF H.R. 7885, THE BIOMASS RE RD+D including biomass feedstocks, con explanation of each of the three tiers SEARCH AND DEVELOPMENT version processes, and end uses. as provided by Mr. Blum: ACT OF 1980 The legislation provides financial assist ance to private industry for the purposes of 1. WHAT IS ON THE PUMP IS NOT WHAT YOU GET developing and demonstrating biomass IN YOUR TANK! HON. CECIL (CEC) HEFTEL energy systems. The octane of the gasoline now being OF HAWAII The bill allows the Secretary of Energy to pumped may be as low as 83 octane. A mini IN THE HOUSE OF REPRESENTATIVES convey title to purchasers of biomass sys mum of 92 to 94 octane for the lowest grade tems and to monitor the systems to get the of gasoline would return octane levels to Tuesday, August 19, 1980 data needed. where they were ten years ago. By raising e Mr. HEFTEL. Mr. Speaker, on July Section V-Biomass Resource Assessment: the octane levels back up, we will get better 30, Congressman FITHIAN and I intro The Secretary of Energy is directed to mileage. My auto owner's manual for my duced H.R. 7885, legislation aimed at conduct a three year program of biomass re · 1979 Ford says the car will run most effi· accelerating the Department of Ener source assessment to- ciently on gasoline with an octane rating of gy's research effort into the multifac Conduct activities to validate existing as 91. It also states that damage to the engine sessments of known biomass resources; will result if gasoline with an octane rating eted character of biomass energy. Al Perform assessments in regions of the of 87 or less is used. If your engine pings though the comprehensive synfuels U.S. where the use of biomass energy may and knocks, the octane is too low for the legislation just enacted by Congress prove feasible; engine and premature wear or damage may provides funds for a biomass to alco Initiate a general site prospecting pro result. Moreover, inferior octane levels are hol commercialization program, we gram; causing you to use more gasoline while ob feel that there are many other bio Establish standard biomass data collection taining fewer miles per gallon. By using Pre mass technologies which may require and siting techniques; mium grade <93 octane>. my vehicle has in further development in order to maxi Make public information available on the creased in efficiency by 33 percent. I have known biomass energy resources of various found similar increases in other vehicles mize their energy yield and process ef regions throughout the U.S. which I have tested. It would appear this ficiency. We hope that our colleagues Section VI-Comprehensive Program situation is reinforced by at least one major will join in cosponsoring H.R. 7885 and Management Plan: gasoline producer which offers the public that the legislation will serve as a Directs preparation of a comprehensive more engine efficiency with the purchase of springboard for the more rapid dem program management plan, to be developed its unleaded premium gasoline over its regu onstration and commercialization of by the Secretary of Energy in consultation lar grade. these many and varied biomass tech with the Department of Agriculture, Envi ronmental Protection Agency, National Sci 2. WHEN YOU ORDER NO. 2 FUEL OIL YOU DO nologies. ence Foundation, and the Tennessee Valley NOT GET IT! Mr. Speaker, at this time I present a Authority. You get No. 1 and No. 2 mixed at a higher cost, less efficiency and H.R. 7885 for the RECORD: ments for the program and plans to meet greater wear on your oil pumps. This mix Section !-"Biomass Research and Devel those requirements be a part of the compre ture is only needed for about 5 percent of opment Act of 1980." hensive plan. 22034 EXUNSIONS OF REMARKS August 19, 1980 Requires transmission of plan to authoriz PRESERVING AMERICAN JOBS jet engines and turbines, and in ing committees within nine months after THROUGH A STRONG DEFENSE mining and machine tool bits. U.S. in passage of the bill. dustries obfain 65 percent of their Requires updated version of plan to be HON. WM. S. BROOMFIELD cobalt supply from Zaire, a nation transmitted to Congress yearly with the which possesses 60 percent of the Budget, to set forth changes in: objectives OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES world supply, and 7 percent from of program; elements of program, structure, Zambia, which, together with Moroc activities; strategies and commercialization Tuesday, August 19, 1980 plans, including milestone goals; cost to fed co, lays claim to 16 percent of the eral government; and justification of e Mr. BROOMFIELD. Mr. Speaker, I world's cobalt supply. changes. am very pleased that a section of the Manganese is an essential compo Republican platform is devoted to ad Section VII-Criteria for :Program Selec nent in steel production, for which it dressing the problems of insuring the is chiefly employed and cannot be sub tion: security of energy and raw material Sets priority goals for project support stituted. The United States imports 98 access. I have long been concerned percent of its supply of manganese in Preference to be given to those projects about our Nation's dependence on im which make use of land which is unsuited the form of manganese which we for cultivating food crops, and projects ports for many essential raw materials obtain principally from Gabon-36 which otherwise minimize competition be and the resulting vulnerability of percent-and ferromanganese, which tween energy and food as biomass end uses; many U.S. industries and, in turn, we obtain mainly from South Africa- Minimization of operations, maintenance, American jobs, to raw material disrup 30 percent. Collectively, the U.S.S.R. and capital construction costs; tions. and South Africa possess 80 percent of Bringing costs of biomass energy down to I most emphatically agree with the the world's manga.I!ese supply. a level competitive with energy costs from platform statement that this problem Ninety-two percent of our Nation's conventional energy systems; "can no longer be ignored." The plat chromium supply is imported, in the Encouragement of private industry cost form validly argues that "reducing re form of chromite and ferrochrome. sharing with the federal government; liance on uncertain foreign sources Our chief suppliers of chromite are Encouragement of use of domestically ob and assuring access to foreign energy South Africa-35 percent-and the tained feedstock; and raw materials requires the harmo U.S.S.R.-18 percent-and of ferro Encouragement of private sector partici nization of economic policy with our _chrome are South Africa-38 percent pation in the program; and defense and foreign policy.'' Indeed, and Zim.babwe-23 percent. South Emphasis to the greatest extent practica the security of energy and raw materi Africa and Zimbabwe collectively pos ble on programs which utilize small-scale al access, together with the related sess 94 percent of the world's chromi biomass technologies and projects with problem of protecting foreign markets um supply. Chromium has no substi near-term energy potential. for American exports, are the two tute as an ingredient in stainless steel, Section VIII-Monitoring, Information principal reasons why a strong defense and is also of critical importance in Gathering and Liaison: is essential for the long-term economic heat resisting alloys and plating and in Requires Secretary to monitor data and security and prosperity of our Nation. the production of surgical equipment disseminate it and to maintain liaison with A disruption in the supply of essen and ball bearings. private industry and scientific community. tial raw materials, or the loss of a market for U.S. exports, would be se The platinum group metals are used Section IX-Studies and Dissemination of principally as a catalyst in car-exhaust Information: verely crippling to the U.S. economy. Many U.S. industries would be forced converters. The United States imports Requires Secretary to make public as 91 percent of its supply, primarily much information as possible so as to en to cut back production, while others courage widespread use of biomass energy. would have to shut down entirely. from South Africa-42 percent-and Requires Secretary to make recommenda This would cause a considerable in the U.S.S.R-26 percent. The world tions, within 18 months, on a program of in crease in both long- and short- term un supply of platinum group metals is centives to users and purchasers, to acceler employment. Our Nation must not principally located in South Africa-71 ate commercial application of biomass tech allow this to happen. percent-and the U.S.S.R.-27 percent. nologies. As for the status of nonfuel mineral The most striking feature about Requires Secretary to make recommenda requirements of U.S. industries, 22 of these four minerals, which are crucial tions, within 12 months, on the need for fi the 24 minerals which are most impor to many U.S. industries, is that the nancial assistance to manufaeturers of bio tant to our industries and for which world reserves of these minerals are mass energy systems. there is a heavy and growing require principally concentrated in just five Section X-Federal Biomass Energy Utili ment, ~re obtained primarily through countries: the Soviet Union, South zation Program: imports. Within this group, there is a Africa, Zimbabwe, Zaire and Zambia. Sets aside a portion of funds under the net import reliance of between 70 and This makes U.S. industries vulnerable bill for federal procurement of biomass sys 100 percent for 17 minerals. While to economic warfare, which could take tems for power production for Federal facil there are substitutes for some of these the form of trade sanctions or exorbi ities. minerals, employment of these substi tant price hikes by individual supplier Section XI-Encouragement and Protec tutes imposes substantially higher nations or by supply cartels. In addi tion of Small Business: costs to the industries because of in tion, given the area of concentration, Requires Secretary to take steps to assure creased capital outlays, reduced tech our Nation's industries are constantly full participation by small businesses. nical performance standards, and pro in danger of facing supply disruptions Requires Secretary to protect trade se duction process conversion time. as a result of changes in a supplier na crets of small businesses. These minerals are located predomi tion's attitude and policies toward the Requires Secretary to take steps to assure nantly in Latin America, Africa, and United States, or because of political compliance with antitrust laws. Southeast Asia. instability within a supplier nation. Section XII-Authorization of Appropri The Department of the Interior has The most serious threat to the secu ations: identified four minerals from this rity of U.S. access to raw materials, Authorizes $150 million for fiscal year group as being "of most critical impor however, comes from the Soviet 1981 for activities to be carried out under tance to U.S. interests." They are Union. The U.S.S.R. is self-sufficient the Act of which $10 million is to be set cobalt, manganese, chromium, and the in most of the nonfuel minerals that aside for the biomass resource assessment platinum group metals. the United States has to import from program established by Section V and $10 The United States imports 97 per politically uncertain nations. Indeed, million to be set aside for the federal pro cent of its cobalt supply, a mineral for the Soviet Union lays claims to 80 per curement program to be established by Sec which there is no substitute as an in cent of the nonfuel mineral resources tion X.e gredient in high temperature parts of of all CollUI\unist countries, and their August 19, 1980 EXTENSIONS OF REMARKS 22035 reliance on any nonfuel mineral does recent years one of the few positive newed emphasis upon collective secu not exceed 50 percent. factors in our balance of payments. rity among the free democratic soci The considerable mineral wealth of The American agricultural export in eties of the world. the Soviet Union provides Moscow dustry is huge-alinosf one harvested I advocate the development of a vol with the capability of waging econom U.S. acre in three produces for untary alliance of about 10 to 20 sea ic warfare· on the United States. This export-and, due to its size, it greatly going, trading allies with whom we warfare could take many different benefits the U.S. economy. could share political, economic, and forms, but our Nation should be par The magnitude of the industry has military burdens to provide mutual se ticularly prepared for the following. encouraged efficiency in U.S. agricul curity against the Soviet Union and First, the Soviet Union might seize tural production through economics of their satellites and also to maintain a control of important mineral produc scale, thereby reducing food costs to balance of world power favorable to ing countries in the Third World, di U.S. consumers. Moreover, the U.S. ag the free nations of the world. The pri rectly severing the supply line of criti ricultural export industry has in mary purpose of the alliance would be cal minerals to the United States. Mos creased nonfarm income and stimulat to protect the sealanes linking the cow's invasion of Afghanistan has ed off-farm employment to the level great democratic trading nations to harshly realerted the United States to whereby approximately 1.2 million the most important suppliers of raw the threat of such action by the Soviet full-time civilian jobs are related to materials resources. In addition, such Union. U.S. agricultural exports. an alliance would help the member na Second, the U.S.S.R. may attempt to The foreign markets for U.S. agricul tions preserve their access to foreign undermine the internal stability of the tural exports are concentrated among markets for exports by better guaran critical mineral supplier nations in the Third World nations. Thus, most teeing export passage through the order to disrupt the supply of essential of the threats to insuring the security strategic chokepoints of the world. In minerals to the United States. It is by of energy and raw material access, this regard, the Carter administration no means inconceivable that the identified earlier, would also under has revealed little creativity toward Soviet-Cuban involvement in Africa is mine our industries' access to foreign the development of such seagoing alli motivated by Moscow's desire to deny markets. ances. the U.S. access to the African miner The United States is, at present, in Our Nation must act now to als. adequately prepared to safeguard U.S. strengthen our military forces, im Third, our Nation must be constant businesses from potential events prove our intelligence network and de ly cognizant of the longstanding which would threaten the security of velop a voluntary alliance of the free Soviet obsession to control the world's energy and raw material access and seagoing, trading nations. In so doing, sealanes, an obsession which may the preservation of access to foreign we would be acting to preserve the become a reality in the 1980's. Such an markets for U.S. exports. Our Nation long-term economic stability and pros occurrence would seriously undermine must act quickly and decisively to re perity of our free enterprise system, the ability of the United States to verse this situation before a major and to protect the American jobs that insure secure mineral access, notwith supply disruption occurs or foreign would be lost if key foreign mineral standing the grave consequences for market is lost. supplies are inaccessible to U.S. indus U.S. foreign policy in general. Moscow The essential first step we must take tries, or if access to foreign markets is has been steadily developing its naval to reverse this situation is to strength severed.e capability toward this end. The head en our military power strategically of the Soviet Navy, Admiral Gorshkov, and conventionally, including our abil ROBERTIRRMANN has revealed that the Soviet Union's ity to quickly project power through first major nuclear-powered attack air out the world. Our Nation's defense craft carrier is now under construc capability must be perceived by HON. LES ASPIN tion. In addition, the Soviet Union has Moscow as a credible deterrent to OF WISCONSIN under construction four new classes of Soviet adventurism. In particular, we IN THE HOUSE OF REPRESENTATIVES nuclear-powered cruisers and a new must substantially improve our naval Tuesday, August 19, 1980 class of large logistic ships to enable forces in order to countervail the long • Mr. ASPIN. Mr. Speaker, for over 30 operations far from the home ports. standing Soviet aspirations toward years Beloit College in Wisconsin was Moscow has also conducted sea trials control over the world's sealanes. The fortunate enough to have Robert Irr of a new titanium-hull submarine that record of the Carter administration in mann as a professor. This spring, he is faster than any U.S. vessel. this regard is abysmal. In the last 3 retired to work on the school archives, Expanding this analysis beyond non years, the United States has reduced and will be sorely missed by faculty, fuel minerals, the Soviet Union also shipbuilding, canceled the B-1 alumnae, and the student body. threatens our access to petroleum. bomber, and delayed the MX missile At 13 years of age, Irrmann was The Central Intelligence Agency re program, thus weakening defense pro stricken with polio. During his long ported last year that the U.S.S.R. will, grams essential to the economic secu hours of confinement, he began to in the near future, discontinue export rity of our Nation. Moreover, the cur study history and overcame his handi ing oil and be forced instead to import rent administration has failed to ad cap to become what one colleague it. Moreover, the CIA report predicted dress the basic problem of skilled mili called "an old-fashioned spellbinder." that this change would result in the tary personnel retention. His best tribute came from a former Soviet Union directly competing with Furthermore, immediate steps must student who said: "He made us in the United States and allied countries be taken to restore the overall integri tensely aware of how the world has for the same sources of oil. This devel ty and effectiveness of U.S. intelli come to be the way it is, for better or opment, together with the recent gence. An improved intelligence net worse-and aware that the world is an Soviet invasion of Afghanistan, and work is needed to adequately forewarn awfully interesting place.''e the unrest in Iran, makes the oil-rich our Nation about any international Near East land mass an area particu events that might adversely affect our larly vulnerable to Soviet adventurism. economic interests abroad. The sub The important sea routes which flank stantial dependence of U.S. industries CWA's STATEMENT ON JOBS this area have narrow passageways on imported raw materials and foreign AND ENERGY which increase the difficulty of insur markets for U.S. exports make it essen ing our Nation's access to the oil sup tial that our Nation has an effective HON. ANTHONY TOBY MOFFETT plies. intelligence network to protect our OF CONNECTICUT Just as secure access to foreign stra economy from unstabling events. IN THE HOUSE OF REPRESENTATIVES tegic minerals is vital to our Nation's Finally, the United States needs to economy, so is preserving our indus face up to the strategic realities of the Tuesday, August 19, 1980 try's access to foreign markets for U.S. world as it is. To adequately protect • Mr. MOFFE'IT. Mr. Speaker, sever exports. The most significant u.s. our economic interests abroad in the al weeks ago, I referred to the excel export in this regard is agriculture, in : 1980's, our Nation must place a re- lent statement by the Comm.unica- 22036 EXTENSIONS OF REMARKS August 19, 1980 tions Workers of America regarding pound of coal to generate a kilowatt hour. A comprehensive, equitable national energy policy. I would also like to Similarly, the replacement of steam power energy policy should include the following: by diesel engines for locomotives led to a <1> Establishment of a quasi-governmental draw my colleague's attention to sixfold improvement in the apparent energy agency such as the TVA to coordinate ex CWA's views on the relationship be consumption for trains while maintaining ploration and development of energy alter tween energy policy and jobs policy. I GNP growth. natives, regulate imports and serve as a believe a sound energy policy is critical Technological innovations which change yardstick to measure the performance of to the well-being of our economy and the form in which energy is available have energy production in the private sector. the individual workers within it. The also substantially affected energy use. For (2) Direct government grants to support views of CWA on this issue are ex instance, the widespread introduction of weatherization and conservation measures tremely valuable and worthy of care electricity and the internal combustion for residential and commercial buildings. ful review and consideration. engine changed America's energy use pat Tax credits are fine for the wealthy, but low tern and rate of consumption. The introduc and middle income families cannot afford ENERGY, JoBs AND THE EcoNOMY tion of electricity increased the overall pro the initial costs of conservation improve Ever since the five month OPEC cartel in ductive efficiency of the economy, particu ments. 1973, Americans have become increasingly larly in manufacturing, by replacing the (3) Grants and subsidies for mass trans aware of the harmful economic effects of steam engine. In agriculture, the internal portion projects should not be sacrificed as rising energy prices, uncertain supplies and combustion engine pushed productivity to a part of ill-conceived budget cuts. our dependence on foreign oil. Volatile levels hardly ever imagined before. <4> Manpower policies must provide for energy prices restrain economic activity, International comparisons suggest areas workers and their families who are adverse leading to an inequitable distribution of in which energy waste and inefficiencies ly affected by changes in existing energy goods and services and loss of jobs. could be eliminated in the United States. patterns. Intensive consideration should be Economic vitality is the chief determinant The transportation sector, for example, re given to a national program of relocation of a full employment economy, not energy veals the greatest area of waste by the and training allowances for workers who are use. For many years now, certain members United States when compared to Europe. displaced and unemployed because of of the energy industry have advocated the Not only do American cars use 50 percent energy policies. false belief that growing energy use must more fuel per mile than Europeans, but (5) Gas and electric rate structures should parallel national output if we are to achieve Americans drive more. A majority of these be revised to encourage conservation, not and maintain full employment. For exam miles are in the city and reflect the lack of consumption. ple, they would claim that a doubling of mass transit alternatives. (6) Conservation and efficiency and not energy consumption is required to double Another major area of waste is iJ;l residen rising prices, should be the chief means of the Gross National Product . Howev tial and commercial heating and cooling. holding down energy consumption. An ex er, the historical relationship between Americans use twice as much energy to heat ample of this would be a federal mandate energy use and GNP does not support this their homes as do the Swedes, even after ad that automobile manufacturers produce belief. As can be seen from Table II, the justing for climatic variations and the dif only small, four-cylinder cars.e amount of energy per unit of GNP varied ferent sizes of houses. In the United States, widely with economic growth rates from residential and commercial buildings require 1950 to 1975. 38 percent of our nation's energy supply, MEALS ON WHEELS and much of this is wasted. By "plugging TABLE 11 .-RATIO OF ENERGY GROWTH TO ECONOMIC the leaks" through such conservation meas HON. BARBARA A. MIKULSKI GROWTH IN THE UNITED STATES VARIES ures as increased efficiency of new appli ances, insulation, or improved lighting, we OF MARYLAND Unit 1 Percent 2 could substantially reduce our energy con IN THE HOUSE OF REPRESENTATIVES sumption without changing our lifestyle. Tuesday, August 19, 1980 1950 to 1955 ...... 0.63 4.3 Many industrial production processes are 1955 to 1960 ...... 1.10 2.2 another source of energy waste. Sweden, for eMs. MIKULSKI. Mr. Speaker, 1960 to 1965 ...... 81 4.8 · example, uses 85 percent as much energy 1965 to 1970 ...... 1.45 3.2. Meals on Wheels is a service which is 1970 to 1975 ...... 65 2.1 per unit of production as does the United near and dear to my heart. It em States. This difference reflects considera bodies many of our American ideals. 1 Unit of energy for every unit of GNP. tion of energy-efficient methods in engi Using volunteers to package and deliv 2 Economic grOwth rate. neering designs. Source: Herman Franssen, Energy-An Uncertain Future: An Analysis of U.S. er food to shut-ins, this service is of and World Energy Projections Through 1990. TOWARDS A NATIONAL ENERGY POLICY fered to those in need at a very low Our national energy policy should ensure Clearly, the data indicates that energy use cost. adequate. affordable energy supplies to all I am particularly proud of Meals on and aggregate output do not move in lock Americans. In conjunction with this goal, all step. Reinforcing this conclusion are recent policies must be coordinated with the aim of Wheels of Central Maryland, which experiments of the National Academy of achieving and maintaining a full employ provides home-delivered meals in my Science with six econometric models. ment economy. We should re-emphasize congressional district as well as other The results show great flexibility in the that employment levels are dependent on areas of central Maryland. That orga ratio of the amount of energy consumed to overall economic activity, not on energy ex nization will be celebrating its 20th an economic output. Therefore, the potential pansion. Finally, we have an obligation to niversary in October of this year. exists' for continued economic growth with ensure that the social and economic burdens out increasing our energy consumption. In Started by the Baltimore chapter of of achieving our goals be shared equitably the National Council of Jewish fact, the NAS study concluded that "a by all. strong economy could well exist three or We support the development and expan Women in 1960, the service has grown four decades hence with a ratio of energy sion of all types of energy alternatives, in from 40 meals daily to 2,100 meals. use to GNP as low as half the present." cluding coal, solar power, geothermal power, The service is made available INEFFICIENCY AND WASTE synthetic fuels, wind and tide. Among the through the efforts of many communi The efficient allocation of energy re existing technologies, conservation will play ty organizations, including churches, sources is the best way to redirect our econ an indispensable role in our energy future. synagogues, and community associ omy onto a path towards growth and full For increased energy production, coal is the ations throughout the region. Funds employment. Since the onset of the energy most likely transition fuel to wean us from for this agency come from a wide vari crisis in 1973, Americans have become in our dependence on foreign oil. We possess creasingly aware of energy waste and ineffi more coal than any other nation, yet we ety of sources, including private dona ciencies in transportation, residential and have not used this resource to our best ad tions as well as Federal funds. The do commercial buildings and production. This vantage. Nuclear power is embroiled in nation of volunteer time and mileage situation could be alleviated through the ex growing political entanglements which most represents the largest contribution ploration and development of all types of likely may prevent it from developing this agency receives. energy sources. beyond its current contribution of energy This vital service, which is offered so In the past, the introduction of improved production. We only support the continued cost-effectively, is one example of how energy technologies has dramatically re development of nuclear energy plants which neighbors are helping neighbors. So duced energy consumption while contribut have adequate safeguards for society. ing to rapid economic growth. For example, Unless new developments prove conclusively often we assume that if Government is in 1900 it took seven pounds of coal to gen that nuclear energy is safe, we recommend not doing it, it is not being done. Well. erate one kilowatt hour of electricity. By that no new nuclear plants be built and that I know for a fact that Meals on 1920 this had dropped to three pounds and existing plants continue until they are Wheels volunteers in my district as by the mid-1950's it took less than one phased out by other sources of energy, well as other parts of the country are August 19, 1980 EXTENSIONS OF REMARKS 22037 a significant factor in the prevention "I eat the hot meal right away and put remain independent as long as possible, and of unnecessary institutionalization for the cold food in the refrigerator for my this helps them to do that." supper. A kindergarten teacher, Mrs. Joerdens many disabled Americans. And, I am "It's a comfort knowing somebody is says she has been a Meals-on-Wheels volun proud to share with my colleagues the coming. I get along with the neighbors, but teer for 18 years. But she prefers packing to following article from the Baltimore I was never one to pu3h myself on people, visiting. · Sun-Wednesday, August 6-which de and there are days I don't get to see any "I think it would get to me. I'd get too in scribes what Meals on Wheels means body. The volunteers are always nice." volved." to clients who receive them: For Eddie Rosenfeld, the daily visit from Mrs. Foy says she has tried going out on Meals-on-Wheels may have literally been a delivery. FRIENDSHIP COMES WITH DINNER WHEN lifesaver. "It's really interesting," she said. "People MEALS-ON-WHEELS MAKES ITS RoUNDS Eddie, a well-known artist who just cele are so glad to see you. They feel you really -an area Andrews calls "the Persian three-part series of articles on one of market. Gulf of metals." the most serious, yet little discussed, Actually, without chrome it would be im Chrome deposits also are found in Russia, possible to build jet aircraft, cars, oil refin Turkey and a hadful of other nations. But threats to the security of this Nation. eries, computers, conventional and nuclear Rhodesia by far has the most-a 700-year We all know the damage done by an power plants, modem food-processing facili supply-and until a few years ago, the Brit oil embargo, but few of us recognize ties and hospital operating rooms, he point ish had a lock on it. how dependent the United States has ed out. But as the Third World emerged from the August 19, 1980 EXTENSIONS OF REMARKS 22041 decolonization trend of the '60s, the map of Japan imports all of its oil, while the U.S. "There's really no titanium shortage," An Africa got a new set of names. The Belgian produces more than half of the petroleum it drews said, "just a shortage of production Congo became Zaire. Angola, Zambia, uses. capacity. Rutile is Botswana, Namibia and Tanzaina gave the It's in the area of strategic materials, like found everywhere. It's production capacity Dark Continent new character. More recent chrome, cobalt, magnesium and platinum, fluctuations that hurt. Now titanium ap ly, Rhodesia evolved as Zimbabwe and a that Japan and the U.S. have a common pears to be the metal of choice." Domestic black regime replaced the white-dominated problem. Both are have-nots. producers will be able to meet the demand, government. However, the Japanese very carefully he feels. Along with the new names came a new set manage their strategic materials, making Lawrence Monberg Jr., a Fort Lauderdale, of political philosophies, Andrews pointed sure the supply lines are kept open, that po Fla., securities executive who follows metal out. Some countries are friendly to the U.S., litical and domestic policies do not interrupt stocks, believes "the next OPEC-type crisis others are either Communist or leaning the flow. to hit this country will come in strategic that way because the Russians are hard at Through the Ministry of International metals." He became aware of the raw mate work in the area, even to the point of pro Trade and Industry, the Japanese economy rials shortage while researching metals viding Cuban troops. enjoys a degree of planning and monitoring stocks. Alarmed at what he found, he has The delicate political balance of these that eliminates wasted effort and assures a been spreading the word at stock broker fledgling nations is made all the more pre high rate of productivity. Although Japan meetings and through newspaper inter carious by their financial instability. does not have a planned economy in the so views. At best, the new African states are cau cialist sense, MIT! keeps a firm hand on the He thinks the U.S. must cultivate its al tious and distrustful of dealing with the steering wheel and the throttle. ready friendly ties with Australia because U.S. At worst, they're under the Russian The concept of economic planning has the "land down under" is loaded with strate spell. never been popular with American industri gic materials. Mutua} feelings of anxiety often snag alists. But increasingly they are looking to Andrews agrees that some strategic metals these relationships, Andrews noted. Washington for guidance on crucial issues, might be cartelled, but not all. "It would "They're afraid of being taken and so are such as energy and strategic materials. Un have to be a product the world cannot do we," he said. Exploitation is the main fear fortunately, response from the government without," he said. "Chrome, cobalt, manga of the Africans while the threat of national has fallen short of what is needed at this nese and platinum qualify in that respect," ization haunts American investors. As a point. he added. result, valuable mineral reserves often "The U.S. has no economic planning," E. Also, the cartelling country has to be fi remain in the ground instead of being devel F. Andrews. vice president-minerals and nancially sound, be continued. "South oped. services for Allegheny Ludlum Industries Africa is but Zaire isn't. Cobalt is Zaire's Interests of the new Third World states Inc., observed." "It's a matter of thinking cash crop; they have to sell it so it probably often differ from those of the super powers, ahead, anticipating your environment," he couldn't be cartelled." Andrews said. Unfortunately, the U.S. gov continued. But chrome is another story, he said. Rho ernment hasn't always acted as if it under "The Japanese do it all the time," he said. desia and South Africa have most of the stands African motives. Andrews favors establishment of a nation world's chrome but it doesn't number This is not surprising, considering Africa al materials policy board-a central agency among their leading exports. Chrome prob has never been recognized by the State De that would function somethinl: like the Fed ably could be cartelled, he feels. partment as a prize assignment. Rather. it eral Reserve Board. Unstable Third World governments, the has been a "burial ground" for diplomats The Fed makes policies that govern the ever-present Russian threat, U.S. deficiency who have fallen out of favor. A stronger dip supply of money, he noted. A materials and the growing demands of our sophisticat lomatic effort would have made more policy board would act to prott!Ct the supply ed economy-those are the factors that sug friends for the U.S. in an area that is criti of strategic minerals and other commodities gest a national strategic metals policy is an cal to American industry. essential to industry, he said. idea whose time has come.e Ironically, at a time when sources of While he doesn't favor cont1·ols over com supply were becoming unstat.le, changes modities, he would like to set: priorities es were occurring in the U.S. th;Lt increased tablished to insure adequate st1pplies. A TRIBUTE TO THE HONORABLE demand for strategic metals. "Its first responsibility would be national HAROLD RUNNElS "In the late '60s and early '70s we passed security," he added. laws that mandated a 25 percent increase in "The Rhodesian embargo in the late the use of chrome," Andrews observed. The 1960's spotlighted the chrome crisis," An HON. MARVIN LEATH legislation led to installation of catalytic drews said. The U.S. cut off its major supply OF TEXAS converters on U.S.-made cars, forced coal of chrome at a time when environmental IN THE HOUSE OF REPRESENTATIVES legislation mandated a 25 percent increase fired power plants to clean up their act and Tuesday, August 19, 1980 tackled water pollution and a host of other in use of stainless steel, which cannot be problems as the environmental movement made without chrome, he recalled. e Mr. LEATH of Texas. Mr. Speaker, shifted from theory to hardware. A watchdog agency like a national materi on August 5, 1980, this Congress lost a Of course, the U.S. is not unique in doing als policy board could play a key role at great statesman, and I lost a dear these things. Environmental reformers are such times, he feels. Andrews cited the cobalt shortage as a friend. I didn't know Harold Runnels at work in all the leading industrial nations prior to coming to the Congress in of the Free World. As standards of living classic case of mismanaging a strategic ma are upgraded abroad, the pressure intensi terial. He explained: January of 1979, but it didn't take fies to develop sources of strategic metals. "For 10 years one-third of the cobalt used long to meet him. His gentle wit, his Every industrial nation needs chrome, in the U.S. was supplied by the national ever-present smile, and his outgoing cobalt, magnesium, platinum and all of the stockpile. We worked down the stockpile personality made Harold a man re other exotic minerals that make the world without developing new resources. Suddenly spected by all of his colleagues, re go round today. If this country is to grow it was realized that we didn't have enough gardless of their political differences and prosper, it will have to keep its supply cobalt and we started buying heavily over lines open to southern Africa and other raw seas. or party. materials sources. "As a result, in one year the price of Harold Runnels was the epitome of Next: Some national planning is needed. cobalt soared from $4 to $50 a pound." the American dream, and his courage Sometimes national priorities get in each exemplified the greatness of our heri other's way. Although the U.S. has to tage. Harold was living proof that the NATIONAL PLANNING URGED To SAFEGUARD import cobalt, some deposits of the strategic American system works, and that all it INDUSTRY material have been discovered in Idaho. Un fortunately, it's on federal land set aside to takes to achieve is the desire and de preserve big horn sheep and can't be mined, termination to do so. He used the free The "Japanese miracle" is one of the eco Andrews said. enterprise system to rise from poverty nomic wonders of the post-World War II On another subject, he belabored the to a man of great resources. Having era. export of stainless steel scrap. "We are the gained that success in business, he was It has made Japan the world's leading ex only nation in the world that does this," he eager to return something to his porter. Japanese products, ranging from said. It's too valuable a commodity to let get Nation and determined to preserve cars and cameras to steel, are big sellers in out of the country, he feels. that which he loved-an America nations througout the Western World. Titanium production capacity has suf strong in individual freedom and a Yet Japan is a "have-not" country whose fered from Washington's fickleness on aero raw materials deficiencies are far greater space programs. Build the B-1 Bomber,. or beacon for all men who aspire for a than those of its big trading partner, the not? The same uncertainties plagued the better life. United States. Japan lacks even the basics Supersonic Transport before it was killed by Harold served the people of New of an industrial economy, like iron and coal, Congress. Each project would have required Mexico with distinction and respect. while the U.S. is well endowed with both. lots of titanium. He served his Nation with a patriotic 22042 EXTENSIONS OF REMARKS August 19, 1980 zeal unequaled; and he served his another. I intend to offer a version of their "Jersey bureaus." New Jersey resi fellow man with honor and dignity. my bill as an amendment to legislation dents have been forced to rely on these out This Nation is better because Harold pending before the Commerce Com of-state stations for local news which ac Runnels passed through it, and our mittee affecting license renewals. Sen cording to an Eagleton Institute Survey, has lives are more complete because ators BRADLEY and WILLIAMS are in left viewers ignorant about state politics, while comparatively familiar with those in Harold Runnels touched us. the midst of filing additional com New York City and Philadelphia. May God comfort us for our great ments in their proceeding before the Considerably less attention, however, has loss, and may we thank Him daily ~or Commission. New Jersey, specifically, been paid to the economic impact on the giving us Harold Runnels for a brief and all States, ultimately, are entitled state due to the absence of a commercial moment. We loved him dearly, and we to service and coverage by a telelvision VHF station. will miss him sorely·• station they can call their own. New The situation, Daniel M. Gaby, president Jersey must not continue to be a of Keyes, Martin & Company-New Jersey's largest advertising agency-once told a con A TV STATION FOR NEW JERSEY media stepchild of the Philadelphia gressional committee, "has stunted the and New York City markets. growth of hundreds of New Jersey compa HON. ANDREW MAGUIRE [The article follows.] nies, reduced job opportunities, and with GARDEN STATE TV: THE BATTLE CONTINUES ered tax revenues." And, others argue, has OF NEW JERSEY folded in the early 1960's. But serious questions remain either New York City or Philadelphia televi July 1980 Jersey Business Review con about whether the state will reap enough sion stations, putting them at a competitive tains an excellent article describing a benefits to justify the long struggle spent disadvantage with out-of-state companies. situation unique to New Jersey and with the Federal Communication Commis The problem in this instance is one of eco Delaware about which most Members sion and the networks to achieve this nomics. New York and Philadelphia are the are unaware. Our two States are the goal. first and fourth largest television markets in only States in the Union which do not On June 4, the FCC stripped the licenses the country. Consequently, their advertising of three RKO television stations, including rates are also among the highest. But New have any VHF television assignment. Jersey comprises only 30 percent of the New This anomaly astonishes Members WOR-TV of New York. Besides setting off a tidal wave of reaction in the broadcasting York City market audience. As a result, New from other States when they learn industry, the FCC action opened up Chan Jersey companies seeking to advertise on about it and invariably I find the.y nel 9 to applicants interested in obtaining New York City stations must be prepared to wish to do what they can to help. As 1s an operating license fpr that frequency spend up to 70 percent of their advertising immediately apparent, and as the particularly in this state, where the New budgets to reach viewers who may never use author Mr. Dean A. Brianik points Jersey Coalition for Fair Broadcasting has their products. been battling to obtain a VHF television sta A businessman, in Gaby's words, faces out th~ absence of VHF television has "the Hobson's Choice of either wasting 70 economic and political ramifica tion. gra~e The Coalition's executive director Marsha percent of his advertising investment; or tions for our States. Stern says, "the chances are excellent just forgoing the most powerful and effective ad Let us take New Jersey. The citizens excellent that New Jersey will finally get vertising medium in the history of man in the northern part of the State are its own television station," adding it would kind." better able to recognize Mayor Koch be "an absolute travesty" if the license were News coverage given to New Jersey by of New York City and the political not assigned to a New Jersey community. New York and Philadelphia television sta Less than a week before the stripping of tions also has the ability to damage the issues facing local legislators in state's economy. "There are too many mis Albany then they are able to identify WOR's license, New Jersey's two Senators, Harrison Williams and Bill Bradley, filed a understandings concerning New Jersey their own local political leaders and petition with the FCC, asking the Commis which place the state in a peculiar position State officials. They are deprived, for sion to re-allocate Channel 9 to New Jersey. when seen by the rest of the country," com the most part, of local advertising and Furthermore, legislation has been filed in plains John Bachalis, president of the New public affairs programing that !s. tar Congress to amend the Communications Act Jersey Business and Industry Association. of 1934, so that each State will be guaran Bachalis, who believes "the importance of geted to their own needs. The citiZens television is not to impress the business in southern New Jersey suffer the teed at least one VHF commercial television community, but to impress the public and same fate at the hands of the Phila station. The WOR controversy and the stripping generate understanding of business's prob delphia. television programers.. New of the station's license has given new hope lems," also feels out-of-state stations may be Jersey's businessmen and busmess to the Coalition, which has been trying to slow to understand the economic impact of women and all of our citizens who want obtain a commercial VHF outlet in the state stories about New Jersey. to participate fully in the democratic For example, he cites a proposal made since 1972. They feel the FCC now has the during the Federal government's Conrail process are cheated by this situation opportunity to license a New Jersey VHF reorganization program that would have and it simply must, after all these station, without harming the financial in eliminated service on a South Jersey freight years, be addressed. terests of other stations located in New line that carried sand through the Pine Bar York City or Philadelphia. rens. On the surface, such a proposal might As Mr. Brianik notes, Members of Jay Ricks, one of the lawyers who drafted the New Jersey delegation are working seem reasonable, especially when it was the Bradley-Williams petition, summed up learned the line was a money-loser. But Ba tirelessly to rectify New Jersey's ~ele the FCC's dilemma: "Although the FCC has chalis notes the line provided the sand vision problem in two arenas. Smce never acknowledged this, we believe its re needed to sustain the region's glass manu the 95th Congress, I have introduced luctance to reassign a station to New Jersey facturing industry and that a service cutoff legislation which would require the is a reflection of its unwillingness to take would have imperiled "thousands of jobs." FCC to reallocate a frequency to New away the investment of a licensee." And The proposal was eventually rejected, but Jersey and to Delaware. Such a bill with this barrier gone, the petition states, Bachalis says he still believes a New Jersey no such concern now exists. based commercial station, had one existed, would be in the form of an amend The Bradley-Williams petition, if success ment to the Communications Act of could have made the public more aware of ful, would have the FCC reassign Channel 9 just how seriously the state's economy 1934. to New Jersey, although a decision concern might have been hurt by the proposal. Our colleagues in the Senate, HARRI ing which community in the state would get Arthur Cox, public relations director for soN WILLIAMS and BILL BRADLEY, are the license would be made at a future date. the New Jersey State Chamber of Com working administratively and have A successful reassignment petition would merce, contends the situation has given the filed a petition for a rulemaking by also prevent the Channel 9 station's new state no way of interpreting itself to the owners from making plans to operate as a rest of the country. "We are underinterpret the Commission which would have a New York City licensee. similar effect in reallocating a VHF ed to the rest of the nation," he notes, "and The effort to bring VHF commercial tele we would like to see a station that can put frequency. vision to New Jersey, has focused most at our real story to the public in the rest of the This is a battle for fairness in allo tention on the harm the state's political country." cating TV licenses which is going to process has suffered by the token news cov Congressman Andrew Maguire . a leader in the fight to bring a August 19, 1980 EXTENSIONS OF REMARKS 22043 commercial "V" to New Jersey, notes that a forts by governors, congressmen, and news and public affairs programming devot reliance on out-of-state television news de mayors. I'm just not terribly optimistic ed to New Jersey. partments for coverage means major cultur about their succeeding in this situation," he New Jersey viewers currently comprise 30 al events in the state will go unreported. In says. percent of the New York City market. testimony before Congress in 1978, Maguire And, even if Bradley-Williams succeeds in Under the Bradley-Williams petition, keep referred to a complaint from the Greater having the FCC transfer Channel 9 to New ing the transmitter in New York City will Newark Chamber of Commerce that New Jersey, it's not expected the Commission still insure that Channel 9's signal will York television news crews failed to cover will act on the matter for a year at least. At reach viewers of Long Island and Connecti the reopening of the city's opera house, an that time, a successful petition will mean cut. event that was attended by internationally only that Channel 9 itself will be trans The question, then, is whether enough known opera stars and many of the state's ferred to New Jersey; who will operate the New Jersey viewers can be added to areas prominent politicians. But according to the channel will still have to be decided, a proc signed Channel 9 to make it a viable testimony, the Chamber noted several ess that could take years. medium for New Jersey companies to adver weeks later, the New York City TV news Secondly, in June, the FCC was asked by tise on. Dan Gaby says the answer to that crews were there "in abundance" to cover a Multi-State-the company that first chal question is no. He concedes a large number major fire. lenged WOR's license back in 1972-to grant of New Jerseyans would tune in for the sta Cox believes a New Jersey-based television the firm a construction permit. Granting a tion's news and public affairs programs, station would provide the country with the construction permit to Mu,lti-State, notes thus providing New Jersey businesses with opportunity to view the state in a different Jay Ricks, "would indicate a lack of enthusi opportunities to reach a primarily New light than what is now shown and omitted asm for New Jersey's arguments concerning Jersey audience. on the New York City and Philadelphia sta reassignment". As a practical matter, giving But, he adds, "setting aside that portion tions. "What a home-based television sta the construction permit to the New York of the day, you're not changing anything. tion can do in New Jersey is to create an un City-based Multi-State would be a signal the To the extent it was unattainable and unde derstanding of the life of the state, because Bradley-Williams petition has lost, although sirable to New Jersey advertisers, it contin it's important to families who might move at this time, Ricks says he has no way of ues to be. If you don't change the signal here . . . There's no question it will help knowing how the FCC will rule on Multi area, you're not making a significant New Jersey be looked upon more favorably State's request. change. That's the reality. I don't think as a place companies will want to look at." A third factor arises out of a condition in New Jersey should settle for it." Cox thinks New Jersey can sell itself to in the petition itself. A fundamental premise O'Brien concedes New Jersey viewers dustry on matters of bottom line impor of the Bradley-Williams petition is that the would still be in a minority on a reassigned tance such as transportation and tax pack transmitter for Channel 9 will remain in channel 9 TV station, but he believes de ages. But the lack of a VHF station, he be New York City, "so that Long Island and spite this problem, New Jersey businesses lieves, causes many companies not to even Connecticut residents who now receive will still advertise on the station, because it consider New Jersey as a place for expan Channel 9 would continue to do so". represents an improvement over having no sion, despite the advantages the state offers New Jersey station at all on which to adver to industry. The provision was installed because in tise. He also believes a New Jersey station Most business leaders are in agreement 1976, the Coalition for Fair Broadcasting will attract some out of state residents into the state would make, an excellent market has proposed the re-assignment of Channel the Garden State to do business. for advertisers. Robert O'Brien, acting fi 7 to Freehold, in Monmouth New Jersey officials are hopeful the FCC's nancial director for an ad hoc group of New County. One of the arguments used by the revocation of WOR's license and the Brad Jersey businessmen seeking to obtain the li commission in rejecting the request was ley-Williams reallocation petition may final cense lost by WOR, contends there are po that shifting Channel 7 to Freehold would ly pave the way for the return of commer tentially thousands of companies that deprive Long Island and Connecticut resi cial VHF television to the state. would advertise on a New Jersey station. dents of services they received from the sta They believe WOR's legal problems pro Speaking from a banker's perspective, tion. vide the FCC with the opportunity to O'Brien-who is president of Carteret Sav This concession, though, poses some prob remove a political albatross, while at the ings and Loan and a former member of the lems for potential New Jersey based adver same time limiting the financial uncertain Coalition's board-notes only one bank from tisers and their clients. The Channel 9 New ties brought to New York City and Philadel New Jersey advertises on New York televi Jersey station envisioned by the Bradley phia TV stations by the Coalition for Fair sion although there are 220 savings and Williams petition will, by necessity, be able Broadcasting's efforts to obtain a VHF sta loans, 20 savings banks, and "score of com to cover only the northern part of the state, tion for the state. mercial banks". According to O'Brien, Mid and it is generally agreed such a station If Bradley-Williams is accepted, the first lantic Bank officials admit advertising in would have limited benefits for South step toward New Jersey's VHF-TV rebirth New York City has "been a very expensive Jersey businesses. will have occurred. Actual programming exercise for them, but they feel it's been Ricks characterizes the Bradley-Williams from a New Jersey-licensee would still be worth it". proposal as a beginning for VHF-TV in New years away, though, and there are some Keyes, Martin's Gaby says the answer to Jersey and that reallocating the channel who doubt the FCC has the power to re questions about whether a New Jersey com will not be able to meet the needs of the assign Channel 9 before the legal proceed mercial television station based in Freehold southern part of the state. Ricks' feelings ings regarding RKO are complete. could be a commercial success is an un are echoed by the Chamber's Art Cox, while If this view proves correct, New Jersey's equivocal yes ... It would be able to offer Keyes, Martin's Gaby says flatly, "If the wait for VHF-TV will be even longer. Multi the potential advertiser a price and a cost Bradley-Williams petition keeps the trans State began its challenge to WOR in 1972, per-viewer that would be highly competitive mitter in New York, obviously their problem and it still has no guarantee of being the with other forms of media that might be in South Jersey has not been addressed at next operator of Channel 9. Meanwhile, the available to the advertisers. all." file concerning the FCC's relations with "That station." Gaby concludes, "would The petition does have its defenders. A RKO's Los Angeles TV station is 15 years be able to offer an advertiser a large audi spokesman for South Jersey Representative old. ence, a highly-qualified audience with a James Florio . real protector, the United States. always been on the receiving end of condem If the necessary question is, do I want you On this much, both American and Israeli nation, the United Nations offers at least a to "proceed" or start the investigation the officials agree. But when they are all right of reply, even if you know you won't answer is yes for another 70 years if neces through reciting the United Nations' weak win." sary. I have children and grandchildren to nesses and liabilities, they bring you back, The United Nations' 35-year-old dream worry about! That form EEOC 293 is com with a resigned but by no means desperate dies hard.e pleted and enclosed. air, to the fact that the United Nations However, that cockamamie form-EEOC does, after all, exist. The question, then, is Form 314 #76 "questionnaire" not how to reinvent it, but how to live with needs much more "testing". If this new it. And on this point. they are astonishingly ONE CONSTITUENT'S 7-YEAR form is absolutely required by law then you philosophical. WAIT must inform all minority employees now to "This travesty damages the United Na keep detailed records of job titles, ethnic and tions much more than it does Israel," says religious background of every co-employee the Israeli permanent representative to the HON. ROBERT GARCIA and supervisor in their current employment. United Nations, Yehuda Z. Blum, a feisty OF NEW YORK And, to keep such data for 7 to 10 years! academic whose scholarship has centered on Justice delayed is justice denied. While the juridical rights and wrongs of the Arab IN THE HOUSE OF REPRESENTATIVES you have delayed on this complaint of a Israeli conflict. "The radicals and the Soviet Tuesday, August 19, 1980 N.Y.S. Agencies discriminatory action, an Union have taken over this organization," other, the one I am currently employed he contends, adding that the West "seems e Mr. GARCIA. Mr. Speaker, I think with has proceeded to refine its form of dis to have given up." it would be safe to state that of the crimination by interpreting affirmative August 19, 1980 EXTENSIONS OF REMARKS 22047 action as the advancement of only female and has "a potential for strategic advan of the late British air marshal, Sir John whites and orientals in lieu of Blacks or His tages if we fail to respond with adequate Slessor: "It is customary in democratic panics-male or female. Additionally the programs" . ments as conflicting with the requirements within this organization have been passed Taylor: " ... our armed forces in the ag of social services. There is a tendency to over for advancement in favor of white gregate are dangerously deficient in their forget that the most important social serv males or females from outside the organiza capability to deter conflict, conduct sus ice a government can do for its people -is to tion. tained combat overseas even on a limited keep them alive and free.''e The crime of your Agencies non-enforce scale or to provide the military backing nec ment of Federal law is that you have given a essary to support our foreign policy, present clear signal to State government to continue or projected" , outlined the details of the panic-making shouts about our national se tary expenditure severely reduces the re program. curity." sources available for other essential sectors "This annual competition, suggested sev Fritchey quotes several authorities, in and social services-and fuels a futile reac eral years ago, is about to become reality be cluding David Jones, chariman of the Joint tive arms race-excessive military spending Chiefs of Staff, Defense Secretary Harold cause of a generous grant from the firm of Brown, and Maxwell Taylor, former JCS can erode security rather than enhance it." Rockower Brothers, Inc., of Huntingdon chairman, in support of the contention that This is the same McNamara who guided Valley, Pa., to perpetuate the name of the the United States remains militarily equal our course in Vietnam and who, in 1964, had company's founder," Wundohl said. or superior to the Soviet Union. But the this to say to U.S. News & World Report: "The firm and the Rockower family this military balance is never static. The ques "The Soviets have decided that they have year mark Simon Rockower's birth 100 tion is not where we are but where we are lost the quantitative race and they are not years ago <1880) in Austria, and this grant going. On this, hear the recent words of seeking to engage us in that contest. It to establish our annual competition will per those same witnesses: seems that there is no indication that the petuate l_lis name," Wundohl said. Jones: "We have been living off the capi Soviets are seeking to develop a strategic He quoted I. Budd Rockower, chairman of tal of previous investments" while in the nuclear force as large as our own." the board of the Rockower Brothers firm, case of the Soviets "their momentum will As to the effects of military spending on who wrote to the AJPA: allow them to gain an advantage over the our economy, of which McNamara warns, it "My father was a great man-highly re United States in most of the static indica should be kept in mind that during the Ei spected, a humanitarian, a philanthropist, a tors of strategic forces by the early 1980s. senhower administration we were spending man of outstanding character, a religious Moreover, because of the lead time in twice as large a share of our gross national man and a gentleman." modern weapons programs, this progressive product on defense as we do today and, in The Rockower count 71 progeny-chil shift in the strategic balance will continue those years, our economy grew vigorously dren, grandchildren and great-grandchil into the latter part of the 1980s" (FY81 and inflation was, by present standards, dren. "One of his avocations," the board Military Posture Statement>. negligible. And when McNamara contends chairman's letter went on, "was to bring rel· Brown: "The 1979 Soviet military effort that defense spending is at the expense of atives and friends of relatives to this coun- was about 50 percent larger than our own" social services, one is remind_e~ of the words - try. Simon Rockower was a strong man. 22048 EXTENSIONS OF REMARKS August 19, 1980 never humble but possessing of great humil policy. Yet around the globe today, whether forts, he retreated to a reactive "them-first" ity. Among those teachings he left us as his it be Buenos Aires, Paris, or Tel Aviv, our approach. legacy were: 'One of the most important image is characterized as "indecisive," The United States can improve its unilat things is a good name'; 'A family should "weak," or "without determination.'' Our eral restraint policies and regain a position always stay together'; and 'Be proud of your credibility has been tarnished, affecting our of leadership. By developing country-by religion and people will respect you, and you ability to maintain our position as a world .country arms sale criteria and sticking close will gain self-respect.'" power. This is nowhere more evident than ly to the arms sale ceiling, real reductions Budd Rockower's letter also recalled an in our attempt to restrain the world's con can be achieved. · inscription from the 133rd Psalm "on the ventional arms race. As the President has indicated, and histo wall of the Simon Rockower Lecture Hall at The facts reveal that the United States is ry has proven, conventional arms sales can Temple University which eloquently de and has been the largest arms merchant in be a source of regional instability, rather scribes my father's practice and teachings, the world; the latest figures show that the than the answer to the world's ills. The 'Behold, how goo'd and how pleasant it is for US holds 39 percent of the world market. recent world crises, rather than making the brethren to dwell together in unity.'" This figure is growing. While the rest of the case for pouring in more weapons to already Simon Rockower died in 1949 at the age of economy is crippled by poor economic condi unstable regions of the world, point to the 69. "I like to remember the words of tions, the arms manufacturing business is desperate need for arms control. It would Thomas Jefferson, eulogizing George Wash booming, and getting better. Worldwide behoove our government to choose its poli ington. 'Verily, a great man hath fallen this arms exports are nearing $25 billion each cies carefully and adhere to them. The day in Israel,'" Rockower wrote of his year with an increase of $5 billion expected likely result would be an increase in our father. annually. · credibility abroad, and in our safety here at Bloom reported that Dr. Norman Lamm, President Carter realized the dangers of home.e president of Yeshiva University, "has gra conventional arms proliferation early on in ciously agreed that the University will over his service as the nation's commander in see the annual competition, with Prof. chief. "The virtually unrestrained spread of CANADIAN-AMERICAN RELA- David Mirsky, of the University's English conventional weaponry threatens stability TIONS: THE NEED FOR A MORE Department, serving as chairman.'' in every region of the world," he said in Actual competition, Bloom added, is ex May, 1977, as he announced a new arms re POSITIVE ATTITUDE ON BOTH pected to begin in 1981 with entries in six straint program. SIDES categories covering work in 1980. Those cat At the heart of his policy were a number egories include news writing, editorial writ of control mechanisms designed to curb the HON. JOHN J. LaFALCE ing, feature writing, cultural and arts writ transfer of sophisticated US weapons to de OF NEW YORK ing, special series, and page one makeup and veloping nations including (1) setting ceil graphics. ings on the dollar amount of transfers al IN THE HOUSE OF REPRESENTATIVES A national advisory committee is being set lowable each fiscal year, (2) refraining from Tuesday, August 19, 1980 up to offer recommendations to the AJPA introducing newly developed or advanced through Yeshiva University. weapons systems into a region, and (3) pre • Mr. LAFALCE. Mr. Speaker, rela The AJPA, completing three days of brief venting development or significant modifi tions between Canada and the United ings and meetings here, is comprised of cation of advanced weapons solely for States are easily among the warmest some 75 American and Canadian English export. Our friends and allies applauded the and most cordial in the entire world. language Jewish community weekly and bi new policy as a major step toward a world No Armed Forces stand on our 3,000- weekly newspapers and magazines with a wide reduction of conventional arms. The mile border with Canada; and trade combined readership approaching four mil Congress, for its part, endorsed the Presi lion.e dent's proposal and streamlined legislation between the two countries continues to enable the Congress to monitor large to grow at a brisk rate. Indeed, the ac sales. tions of the Canadian diplomatic per ARMS CONTROL AND AMERICAN The stated administration goal was to "set sonnel in Tehran demonstrate that FOREIGN POLICY CREDIBIL a unilateral example of arms restraint for the United States probably has no ITY-AN ARTICLE BY CON other countries· to follow," but this policy better friend than our neighbor to the GRESSMAN ROBERT DRINAN has been a dismal failure. The price ceilings North. for fiscal year 1978 and 1979 have been hon Despite that general picture, there ored, but only by the statistical mismanage HON. DONALD J. PEASE ment of actual arms transfers. Twenty-five remain a number of issues which do OF OHIO percent of all US sales were exempted from not contribute to better relations be IN THE HOUSE OF REPRESENTATIVES the price ceiling for technical reasons. Arms tween the two countries. These issues Tuesday, August 19, 1980 agreements signed after the announcement in and of themselves are not gigantic, of the policy have included some of the but they are vexing and should be re e Mr. PEASE. Mr. Speaker, the opin most advanced systems in the US inventory solved. I suspect that the primary ion and commentary section of the propaganda policy in its money-starved the ecologically dangerous policy of Many Canadians have been unsympathet overseas broadcasting activities. the strategic petroleum reserve, where ic to American complaints about the televi With ferment in the Moslem world, with we pump oil out of the ground and sion tax, but attitudes concerning another an alienated and seemingly rudderless Iran ship it across country, all at great ex Canadian-American tax issue differ marked ian revolution raging against U.S. policy and pense and danger to put it back in the ly. The ·canadian tourist industry continues with the Soviet invasion of Afghanistan, ground as a so-called reserve source. to press for a suspension of U.S. tax laws there is a need to address the Moslem world which prevent U.S. delegates to Canadian I include Hosmer's essay as a portion in an organized, meaningful way. Yet the of my remarks. conventions from deducting their expenses administration continues to look upon our for tax purposes-a tax break which the foreign broadcasting activities as expend A STRATEGIC NucLEAR RESERVE? U.S. Senate is in no mood to give until the able at the altar of a balanced budget. If it is true, as various news reports allege, television dispute is settled, by the way. that previously announced U.S. plans to At least one voice in Canada has pointed In an effort to ameliorate this dangerous deficiency in U.S. policy, Rep. Thomas B. create a "Strategic Petroleum Reserve" out this inconsistency. A July 24 editorial in of approximately one billion barrels the Toronto Globe and Mail said that Evans Jr., of Delaware, has sought to add $2.1 million to the fiscal '81 appropriation of oil have been slowed down, if not shelved, "either we should recognize that both sides because of opposition from Saudi Arabia, can play at protectionism and accept the for the International Communications Agency. It would expand by about six hours there could be a viable alternative which game on those terms, or we should simply would prove much more cost-effective in the daily Voice of Ameri~a broadcasts in seven stop imposing protective policies." We long run: creation of a Strategic Nuclear Re agree. Both countries could be better off key Islamic languages to Southwest Asia, with fewer protective tariffs.e the Middle and Far East and North Africa. serve . It is estimated that 500 million Moslems in Consider the following facts: habit these regions. They can be reached by One 1,000 MWe nuclear power station op TO FIGHT THE PROPAGANDA erating at an average 65 percent load factor existing transmitters, and thus these pro could provide as much electrical energy an WAR posed broadcasts entail no additional ex nually as any of the following: 10 million penditures for facilities. barrels of oil; or 2.4 million tons of coal; or HON. WM. S. BROOMFIELD Actually additional transmitters are 64 billion cubic feet of natural gas; or seven OF MICHIGAN needed to reach some areas where the Sovi million tons of garbage. At $30 per barrel san director of Precana, Father Car 1926. He divided his next several years be He looked like his old friend Spencer dillo is also a member of the American tween preaching and school, earning gradu- Tracy and was amused when moviegoers, August 19, 1980 EXTENSIONS OF REMARKS 22051 mistaking him for the actor, asked for an the backs of the people." And that meant rie, Wash. (permanent population: eight>. a autograph. The thing about Tracy, William Bill Douglas, too. place on the last natural frontier that he 0. Douglas used to say, was that "he never The final impeachment plot came in 1970 considered his permanent home. talked bunk." Also, said the Supreme Court and was led by House Minority Leader Douglas examined all the arguments on justice of the film star, "I never knew Gerald Ford, serving as a ventriloquist's both sides and said that, in essence, this was anyone more American than he." dummy for President Richard Nixon and like all other capital cases. That is, when Douglas could have been speaking about Attorney General John Mitchell, who accu life is about to be lost and there is doubt himself. Blunt, fearless, he scorned legalis rately considered this foremost paladin of whether due process has been followed in tic, euphemistic language. He was the same the Bill of Rights their natural enemy. The the imminent taking of that life, a stay of "Wild Bill," as his law clerks called him, on charges included the scandalous fact that execution must be granted because "death the bench as he was on the mountains he Justice Douglas had exercised his First is irrevocable." loved to climb: passionate, clear, and as re Amendment rights by writing for such "por Then Douglas spelled it out in language so belliously individualistic as the very framers nographic" magazines as Evergreen Review. clear that all citizens could understand: of the Constitution. Indeed, the fiery main Another allegation had to do with a $12,000- "The classic capital case involves whether theme of the more than 1,200 opinions he a-year retainer Douglas was receiving for his Mr. Lew, Mr. Low, or Mr. Lucas should die. wrote during 36 years on the High Court work on a charitable foundation set up to The present case involves whether Mr. X he served longer than any other justice in promote international understanding by [an unknown person or persons] should die. our history-was undiluted, revolutionary bringing foreign students to study the work No one knows who they are. They may be Americanism. ings of American government. The business Cambodian farmers whose only 'sin' is a man who had funded the project, it turned desire for socialized medicine to alleviate And that is why he was the most crucially the suffering of their families and neigh important member of the Court in our time. out, held a mortgage on a Las Vegas hotel and gambling casino. Therefore, Gerald bors. Or Mr. X may be the American pilot But Bill Douglas's value to the nation was Ford implied, Douglas had ties with The or navigator who drops a ton of bombs on a far more than as a jurist. He was the last of Mob. A House Judiciary Subcommittee en Cambodian village. The upshot is that we the truly great men in the public life. In the tirely cleared Douglas. know that someone is about to die." brilliance and the sweep of his intellect, the Having had his high noon with Nixon, So Douglas granted a stay of the bomb boldness of his attacks on illegitimate au Mitchell, and Ford, Douglas kept on being ings. It wasn't up to him, he pointed out, to thority-no matter how high or powerful his controversial self. And he continued to decide at this juncture whether the bomb Douglas was in the direct line of Thomas be a loner on the Court, for he never en ings were constitutional, but anyway, he let Jefferson, James Madison, Frederick Doug gaged in the customary bargaining there us know what he did think: " ... Even if the lass, Eugene Debs, and Sen. Bill Langer, the whereby a justice, to persuade enough of his 'war' in Vietnam were assumed to be a con North Dakota maverick who supported brethren to make a majority, trades off bits stitutional one, the Cambodian bombing is Douglas when hardly anyone else would. and pieces of his own principles. And and there is no one so reckless as to say that any public office. Our officials are smooth, because Douglas would not dilute his opin the Cambodian forces are an imminent and small in scope, fearful of being too contro ions, he was wholly free to play to his great perilous threat to our shores." versial, tailoring their principles to polls. est strength. As his former law clerk, Har The very next day the other members of And on the High Court, the majority now vard Law School Prof. Vern Countryman, the Supreme Court-polled by telephone treats the First Amendment as if it must be says of Douglas: "His capacity to get to the decided to let American bombers continue steadily cut down, because the post-Douglas guts of the issue was his most distinguishing their killing in Cambodia. William Douglas, doctrine is that the citizens are subjects of characteristic. He wouldn't get enmeshed in of course, was the only dissenter. the government, not its masters. technicalities or doctrine. He would always Douglas so often stood against the major In sum, there is no voice now like that of see clearly what the issue was. And power ity, in fact, that he filed more dissents- Douglas when, in 1972, he furiously asked: ing that extraordinary skill at penetrating 531-than did any other justice since the "since when have we Americans been ex to the heart of the matter was Bill Doug founding of the Court. But more of his dis pected to bow submissively to authority and las's rage, until death itself, against injus sents later became the law of the land then speak with awe and reverence to those who tice. As Justice Hugo Black, his longtime did those of any of the other Great Dissent represent us? The constitutional theory is ally in many dissents that later become ma ers, including Louis Brandeis and Oliver that we the people are the sovereigns-the jority opinions, said: "Bill must have come Wendell Holmes. state and federal officials only our agents. into this world with a rush, and his first cry Most often Douglas was alone, or in alli We who have the final word can speak must have been a protest against something ance with Hugo Black, in his total resistance softly or angrily. We can seek to challenge he saw at a glance was wrong or unjust." to punishing speech or writing-no matter and annoy, as we need not stay docile and For instance, three years after the Nixon how outrageous, offensive, or "subversive." quiet." Mafia tried to have him thrown off the Of all his dissents, he was proudest of what This uncompromising Jeffersonian stance Court, Douglas became the first member of he said in Dennis v. United States <1951), got Bill Douglas into a lot of trouble with the High Court in history to stop American when the High Court affirmed the convic those, in and out of government, who, if bombing of another nation. He didn't stop it tion and jailing of 11 Communist party lead they had to vote on the Bill of Rights now, for long, because his appalled brethren re ers for "teaching" and "advocating" the would condemn it as a profoundly subver versed his decision, but the courage he overthrow of the government by force. sive document. showed-and the fundmental humanity of It was a time when much of the nation Three times there were moves in Congress his opinion-particularly underscores what was transfixed by the fear of communism, to impeach the justice. Once, in 1953, when Douglas meant to the nation. As will be and witch-hunts against domestic Reds, real he stayed the execution of Julius and Ethel seen, he was best known for his decisions and imaginary, were being conducted with Rosenberg. Acutely aware of the incendiary Amendment-a body of work that will be a Yet Douglas unequivocally declared that popular feeling against these convicted benchmark of liberty of speech and press so these Communist party officials were fully atomic-bomb spies, Douglas figured that his long as this country exists. But there was protected by the First Amendment because act might lead somebody to "take a shot at much more to Douglas, as Holtzman v. all they had done was to discuss and teach me," but he'd be damned if he'd be intimi Schlesinger reveals. certain books. They had only engaged in dated. Under the law, he said, the Rosen In 1973 Congresswoman Elizabeth Holtz "speech, to which the Constitution has bergs couldn't be sentenced to death unless man of New York and several air force offi given a special sanction. . .. We have the jury had so recommended. And the jury cers serving in Asia sued to force the Secre deemed it more costly to liberty to suppress had not. Therefore, Douglas declared with tary of Defense, James Schlesinger, to stop a despised minority than to let them vent characteristic straightforwardness, "No man U.S. air operations over Cambodia. Why? their spleen. We have above all else feared or woman should go to death under an un Because Congress had not declared war on the political censor. We have wanted a land lawful sentence." The Rosenbergs were elec that hapless country. For years Nixon and where our people can be exposed to all the trocuted anyway, but Douglas had no com Kissinger had secretly been destroying that diverse creeds and cultures of the world." plicity in that judicial murder. land, and now it was being done openly. A But these were Communists! Precisely, In 1966 another impeachment posse went lower court had agreed with Holtzman and said Douglas, why they, too, should be able after Douglas because the justice, then 67, the air force officers, but a Court of Appeals to speak freely here. And he quoted, at the had recently taken as his fourth wife 23- ruled that the bombing must go on until the end of his dissent, from a 1938 book by the year-old Cathleen Heffernan. It was always case went all the way through the judicial chief Soviet prosecutor, Andrei Vishinsky, Douglas's unyielding view that he, like any system. The Supreme Court, however, was The Law of the Soviet State. Vishinsky had other citizen, had the right to live his life in summer recess, and so the lawyers for warned the citizens of his country: "In our anyway he chose so long as he didn't break Holtzman and the other antibombers went state, naturally, there is and can be no place the law. The Bill of Rights, he often said, to Douglas to get him to stop the killing. for freedom of speech, press, and so on for "was designed to keep the government off They found him in his beloved Goose Prai- the foes of socialism." 22052 EXTENSIONS OF REMARKS August 19, 1980 "Our concern," Douglas emphasized, city council, or writing letters to the presi as he had: "Learn to live boldly and adven "should be that we accept no such standard dent or governor or mayor. Legislators may turously, get rid of all the fears that slow for the United States." The quintessential turn deaf ears; formal complaints may be people up and inhibit them. Come to the difference between a free nation, as we pro routed endlessly through a bureaucratic world with an open mind. Don't be afraid of fess to be, and a totalitarian state, is that maze; courts may let the wheels of justice it.'' here everyone, including a foe of democra grind very slowly. And in the epigraph to the first volume of cy, has the right to speak his mind. "Those who cannot afford to advertise in his autobiography, Douglas, quoting a thir Douglas never got over the anti-American newspapers or circulate elaborate pam teenth-century Persian poet, added: "All ism of the majority of his brethren in that phlets may have only a more limited type of your anxiety is because of your desire for case. In 1973, speaking to students at Staten access to public officials. Their methods harmony. Seek disharmony; then you will Island Community College in New York, the should not be condemned as tactics of ob gain peace.'' dauntless First Amendment warrior said of struction and harassment as long as the as Bill Douglas actively and exultantly pur the convicted Communist leaders: "Those sembly and petition are peaceable, as these sued disharmony for all his 81 years. The defendants were not plotting revolution, were." last six were extraordinarily frustrating, handing out grenades, making caches of This craggy six-footer from the West, who however, because a stroke suffered on New rifles and ammunition and the like. They always looked directly at you with his gray Year's Eve, 1974, so incapacitated him that, were teachers only-men teaching Marx green eyes, continually insisted that the with great reluctance, he resigned from the ism." Constitution exists to nurture dissent and to Court on November 12, 1975, after striving Not only was all political speech protect protect the powerless. It was made to safe mightily, in intense pain, to continue his ed, said Douglas again and again, but all guard the heretic from the state and to give work there. And after he yielded that much speech and writing. The First Amendment the poor at least a shot at justice. He was to his infirmity, Douglas nonetheless tried could not be more clear. There shall be no years ahead of his brethren, for instance, in to stay on as a "tenth justice." The Consti law "abridging the freedom of speech, or of urging that all criminal defendants be given tution, however, had no provision for such the press." Period. As Douglas thundered in free counsel if they couldn't afford a lawyer. an arrangement, even for its most fervent the 1966 Fanny Hill case. "Publications and The intensity of Douglas's empathy with utterances were made immune from majori outsiders, even outcasts, did not come solely protector, and Douglas was eventually per tarian control by the First Amendment, ap from an abstract reading of constitutional suaded to withdraw entirely. plicable to the states by the Fourteenth. No history. It came from his own life. As he His mind would not be confined, though, exceptions were made, not even for obscen once said, "I worked among the very, very and Douglas continued writing-finishing ity" [empahsis added]. poor, the migrant laborers, the Chicanos, the final volume of his autobiography. To Douglas, throughout his long term on the and the I.W.W.'s [the Wobbliesl whom I be published by Random House this fall, High Court, was appalled that his brethren saw being shot at by the police. I saw cruel the book, according to sources who have took it upon themselves to police so-called ty and hardness, and my impulse was to be a seen it, presents scathing profiles of certain obscenity. He himself never saw the movies force in other developments than cruelty justices, most notably the late Felix Frank or read the books that came up for decision, and hardness in the law.'' furter and present Chief Justice Warren "because I have thought the First Amend Douglas was born on October 16, 1898, in Burger. ment made it unconstitutional for me to act Maine, Minn. Soon after birth he was taken Until the end, Douglas also kept up with as a censor." to California and then to a small town in his usual wide range of interests, far beyond Back in 1957, when a majority of the Washington. His father-a circuit-riding the Court and the law. In May 1979 for in Court first directly ruled that "obscenity" frontier preacher-died there when the boy stance, he commented trenchantly in a was not protected by the First Amendment, was six. Three years before, the child had letter to the Washington Post on what had Douglas made his position utterly clear, and contracted polio, and the doctors had happened at Three Mile Island: "The mes he never budged from it. Dissenting in Roth gloomily assured his family that the strick sage is clear. The benefits of nuclear power v. United States, the conservator of individ en youngster would never walk again and are far outweighed by the greater risks im ual liberty proclaimed: "Any test that turns would be lucky to live to the age of 40. Fa posed upon an unsuspecting public. If we on what is offensive to the community's therless, growing up in poverty, Douglas should treat the energy crisis as the 'moral standards is too loose, too capricious, too de spent much of his childhood forcing his equivalent of war,' then we should view the structive of freedom of expression to be limbs back into full use through hiking and continued use of nuclear power plants as squared with the First Amendment. Under mountain climbing. Along with instilling in the 'moral equivalent of suicide.' " that test juries can censor, suppress, and him a lifelong tenacity of awesome propor On January 19, 1980, William Orville punish what they don't like, provided the tions, this experience turned Douglas into Douglas, after being hospitalized for a matter relates to 'sexual impurity' or has a an ardent admirer and protector of what month with pneumonia as well as lung and tendency 'to excite lustful thoughts.' This is was left of the wondrous wilderness. , kidney failure, died at Walter Reed Army community censorship in one of its worst An environmentalist before the term was Medical Center in Washington. He was 81. forms. If the First Amendment is to mean know, Douglas was later, in dissent, to fight His Court opinions fill 118 large volumes-a anything in this field, it must allow protests against any further exploitation of forests quarter of the entire production of the Su even against the moral code that the stand and streams, even claiming that all the preme Court from its beginning. But Bill ard of the day sets for the community.'' forms of natural life should have standing Douglas's opinions-and the thrusting spirit In obscenity cases and every other case before the Supreme Court to defend their of liberty that powers them-are not just that came to him on the Court, Douglas was right to exist-"the pileated woodpecker as for study by constitutional scholars and his the strictest of constructionists, interpreting well as the coyote and bear, the lemmings as torians. He reached; and will keep on reach the Constitution as the guarantor of indi well as the trout in the streams." ing, those Americans who continue to vidual liberties it was fully intended to be. refuse, in Louis Brandeis's words, to become Or, as James Madison, the principal archi "submissive clerks" rather than remain con tect of the First Amendment, had kept em • • • • • tentiously independent citizens. phasizing, the greatest danger to liberty in No other justice in American history was this free nation is to be found "in the body more active in life or had a wider range of • • • of the people, operating by the majority knowledge than Bill Douglas. And because • • against the minority.'' he refused to insulate himself within any And what particularly enrages the major one class or age group as he grew older, he • ity is protest against its customs, values, and never did lose his youthful curiosity and ir norms of proper behavior. So long as that reverence. Without being sentimental, WORKERS' STRIKE IN POLAND protest was peaceful, however, Douglas not moreover, Douglas tried to reach out to the only supported but also encouraged it. For young, writing in publications he figured example, during the rise of the civil-rights they read. "People of my generation," he HON. EDWARD J. DERWINSKI movement in the South, students were ar explained, "are bankrupt. Politically and OF ILLINOIS rested in a small Florida town for assem philosophically bankrupt. Look at what IN THE HOUSE OF REPRESENTATIVES bling at a jail to protest the official segrega they've produced: a system that makes war tion policies. In an opinion dissenting the alternative, a system that's highly Tuesday, August 19, 1980 against the upholding of the protesters' con stratified, that just pays off great sums of e Mr. DERWINSKI. Mr. Speaker, victions, Douglas delivered a classic endorse money. This is socialism for the rich. I'd like during the last 2 weeks, the workers• ment of every American's right to take to to reach the minds of the youngsters be strike in Poland has received a great the streets to exercise his freedom of cause this system doesn't have to be this deal of press attention. The efforts of speech: way.'' "The right to petition for the redress of Once, in a recording distributed by Scho these workers to improve the living grievances is not limited to writing a letter lastic Magazines and Folkways, Douglas had conditions in that country has come as or sending a telegram to a congressman; it is a chance to speak directly to very young a surprise to most observers. However, not confined to appearing before the local students. His advice essentially was to live it should not have. August 19, 1980 EXTENSIONS OF REMARKS 22053 I would like to direct the Members' tine procedure for the police to conduct government, it is a matter of regaining its attention to an article that appeared such detention and searches without filing once-deadly grip over the industrial workers formal charges. by means of political and police apparatus in the AFL-CIO Free Trade Union In some cases, however, authorities went penetrating every factory and enterprise. News of June 1980, by Tadeusz Walen even further and have started criminal pro For the opposition, it is a matter of reach dowski, which gives some insight into ceedings based on fabricated charges ing workers with its message of necessary the unrest in Poland. Mr. Walen against worker-activists. This is true in the political changes and teaching them how to dowski now resides in Washington, case of Edmund Zadrozynski, a popular organize and defend themselves successful having recently arrived from Poland, workers' activist from Grudziadz and a co ly. This fight is in its preliminary stages, where he was active in the human editor of "Robotnik." Zadrozynski was ar but the Polish Communist regime remem rested on July 1, 1979 on several charges bers well how profoundly shaken it was by rights movement and as editor of a lit " organizing a criminal gang" was the most workers' unrest twice during the last decade erary magazine, PULS. His comments serious among them. In February 1980, Za Meanwhile, said Fine, the U.S.S.R. has moderate rent controls have had little or no The U.S. and its allies are on a collision begun importing titanium, vanadium, and impact on rental housing production. On course with the Soviet Union over access to lead in significant quantities, even though it the other hand, there are communities strategic minerals. is still a net exporter of these items. Other even whole states-where rental production, This is the conclusion some business lead new materials on the Soviet Union's buying even without rent control, is at a virtual ers and academic experts are drawing from list include beryllium, another metal tough standstill, except for federally assisted or fi a surprising change now taking place in the ener; tantalum, used mainly in electronic nanced projects. Soviet Union's minerals trading pattern. components; and lithium, needed for alumi Mr. Speaker, in light of this, it re Soviet exports of certain minerals to the num production. mains my position that the adminis West are declining sharply. And the This new pattern in Soviet minerals trad U.S.S.R.-widely regarded in the West as a ing, Fine says, is not a passing phenomenon tration and legislators who stress long-term source of supply-has now begun that can be explained by temporary short fiscal conservatism at the expense of to import strategic minerals for itself and ages of key minerals within the U.S.S.R. or critically important low-income hous- its allies from countries whose output tradi short-term speculation by Soviet trading or ing and employment programs would tionally has gone mainly to the U.S. and its ganizations to take advantage of swings in do well to· reconsider their positions allies. world prices. On the contrary, he contends, August 19, 1980 EXTENSIONS OF REMARKS 22055 "it is more like the beginning of a historic seas mines, many of which are far more effi latory policy are all running off on different shift. The mineral-resource balance of the cient than their own. routes-something that does nothing to pro U.S.S.R. is following oil into a new era of THE STOCKPILES ARE LOW mote long range stability for your industry. less-than-self-sufficiency." Nowhere is this multi-headed approach It is scarcely an exaggeration to suggest more evident than in the policy suggestions MANGANESE AND HOGWASH that the West is every bit as vulnerable to on how to encourage more savings. For To anyone accustomed to thinking of the chaos from a cutoff of strategic minerals as months, the Congress struggled for a means vast Soviet Union as one of the world's it is to an oil cutoff. The U.S. relies on im of promoting more savings; for a means of great mineral troves, this development ports for some or all of its consumption of giving the smaller saver more incentives for seems downright bizarre. As the chart on at least 20 strategic minerals; we import 98 leaving funds in depository institutions. We page 43 shows, the U.S.S.R. has some of the percent of our manganese and 90 percent of passed a phase-out of Regulation Q that world's largest reserves of several strategic our chromium. Our allies are self-sufficient will make savings accounts more attractive; items, and its undeveloped mineral re in hardly any of these raw materials. the Ways and Means Committee provided sources-those not yet discovered or delin Our ability to cope with any strategic-min for a $200 exclusion on interest income; and eated as "reserves"-are still thought to be erals cutoff, at least in the short run, is dan the supervisory agencies came up with more staggering. · gerously limited. The U.S. government does flexible savings instruments. Yet the growing dependence on imports stockpile these minerals, and each stockpile All of this made a lot of sense against the may not be as paradoxical as it appears. In is supposed to hold a three-year supply. But backdrop of a nation with an alarmingly low some cases, Soviet reserves may be overstat many now hold less than half the target savings rate. For example, the Federal Re ed. Franz R. Dykstra, a Philadelphia miner amount. Our allies are in even worse shape. serve estimates that the savings rate in the als consultant, says Soviet Figures on man A concerted drive is now under way in U.S. was only 4.3 percent of disposable ganese reserves are "hogwash" because of Europe and Japan, as well as the U.S., to income during the third quarter of 1979. the depletion of known ore bodies by heavy place the strategic-minerals issue high on This was less than half the rate of our mining over the years. Partly because of the public agenda. The drive is being led neighbor to the north, Canada, during the this depletion, Dykstra says, the Eastern mainly by business leaders, such as those same period. Compared to savings rates in European block of countries, including the who gathered in Pittsburgh, rather than by Europe, the disparity is even greater . . . Soviet Union, had to import 400,000 tons of government officials. Many of the execu West Germany had a savings rate of almost manganese ore last year. This year, he adds, tives who attended the Pittsburgh confer 14 percent and the Unit.ed Kingdom, 17 per those imports may reach 500,000 to 700,000 ence are outspoken in their worries about cent. tons. the Soviet Union's new international miner Against the background of these numbers Some segments of the Soviet mining in al maneuvers. One participant was Frank and the growing efforts to encourage sav dustry are in the same kind of squeeze that Shakespeare, former director of the United ings, someone, somewhere in the Carter Ad is afflicting the Soviet petroleum industry States Information Agency and now presi ministration came up with the brilliant idea (see "Why We Should Worry About the dent of RKO General Inc. Said Shake that we should suddenly impose a brand Soviet Energy Crunch," Fortune, February speare: "We have got ourselves a problem. new impediment to savings-a 15 percent 25). Production at existing sites is becoming When we jostle with Western Europe and withholding tax on interest paid on savings costlier and more difficult as the richest de Japan for strategic minerals-that's compe account. posits are skimmed off. In recent years, the tition. When the Russians get into the act With all the tax loopholes, all the tax grade of ore in Soviet chrome and manga that's war."e dodges lying around, the bureaucrats decid nese mines has declined, so more and more ed this was just the place to start turning tons must be blasted and excavated to pro the screws, increasing the paperwork and duce a given amount of metal. At the same HOUSE ENDS SAVINGS discouraging the small saver. time, Soviet efforts to discover and develop WITHHOLDING SCHEME Presumably the proposal is being made to new, richer lodes have faltered because of control evasion of taxes on interest. But, the chronic shortages of equipment and labor. HON. FERNAND J. ST GERMAIN promoters seldom mention that the Internal No one suggests, however, that the Russians OF RHODE ISLAND Revenue Service already receives from all fi will soon experience a minerals shortfall to nancial institutions reports of interest pay IN match the one that looms in oil. THE HOUSE OF REPRESENTATIVES ments on the 1099 forms. If these reports, Nevertheless, the Russians have been Tuesday, August 19, 1980 devised by the IRS itself, are utilized and scrambling to develop foreign sources of Mr. ST GERMAIN. Mr. Speaker, properly placed in the computer program, supply. Significantly, they have been e there is no way that taxes are going to be moving into Third World projects to fill the vying for "Nonsense of the Year evaded. vacuum created by the withdrawal of West Award," the bureaucracy downtown It is entirely possible that the IRS has so ern mining consortia. In the past several has been valiantly promoting the idea fouled up its program that these are not years the Russians have negotiated, either of withholding income taxes on sav being properly used by the agency. But, the on their own or through CMEA, the Eastern ings account interest. Government ought to get its house in order bloc Council of Mutual Economic Assist The Treasury's plan was certain to and it ought not to ask financial institutions ance, more than 27 technical- and economic create another paper blizzard, further and most importantly, savers, to pay the assistance agreements with Third World depress an already alarmingly low sav penalty for IRS inefficiency. countries that produce strategic minerals or The withholding of taxes on interest is a have deposits. The agreements vary, but in ings rate among U.S. consumers, and bad idea whose time should never come. general they feature large-scale Soviet tech do virtually nothing to improve The proposal calls for withholding 15 per nical aid for exploration and development income tax collections. cent across the board-on the little savings of new mines, with eventual payment in the Today, the House put to rest these account as well as the jumbo CD accounts. form of recovered minerals. ill-considered plans by prohibiting the This means that the senior citizens who Meanwhile, the Russians and their allies use of appropriated funds for the maintain modest savings accounts will have are gaining military footholds in places study or implementation of withhold 15 percent of their interest siphoned off by where they could one day cut off Western ing on savings. the Federal Government-even though they access to strategic minerals. One need only will at the year's end owe no taxes. glance at a map of Africa to see that the Mr. Speaker, as my colleagues know, Sure, these savers can file for a refund or countries containing vast reserves of strate I have long opposed the withholding they can fill out still another form seeking gic minerals are precisely those in and of taxes on interest income as some an exemption from withholding on the around which Russian, East German, and thing which places unnecessary oner grounds they won't owe taxes. But, all of Cuban military personnel are stationed. ous burdens on the small saver and this is extra paperwork and much more To some observers, all this suggests a con which creates additional problems in onerous than the bureaucrats realize. certed, long-term effort by the Soviet Union attempts to increase the Nation's level In addition to all the little problems this to starve the West of minerals. There are of savings. On May 12 of this year I adds for the already harried individual tax limitations, of course, on how fast the payer, I am also concerned about the drain U.S.S.R. could do this without triggering a addressed the National Association of that this represents from the thrift industry war. It could not simply buy up minerals Mutual Savings Banks on this subject and ultimately from the housing market. At right and left, because it has very little hard and insert in the RECORD excerpts the moment these funds-which would be currency to spare for this purpose. But the from the speech: drained off by withholding payments to the Russians could obtain more and more min If we could get all of the elements of the Treasury-remain on deposit in financial in erals through barter arrangements, at Federal Government pulling together at the stitutions. At a time when we are trying to which they are old hands. They may wind same time in the same direction, some of increase the flow of funds, to prop up a sag up doing more of this anyway, even if they these new initiatives might have meaning. ging housing market, and to make savings don't plot to cut off the West's supply. They At times it seems like monetary policy, legis more attractive, this withholding proposal is really appear to need minerals from over- lative policy, White House policy and regu- Example Number One of why the people 22056 EXTENSIONS OF REMARKS August 19, 1980 wonder whether Washington's right knows tirement programs, while needlessly derly labor force participation. Generally, what its left hand is doing at any given alarming the Nation's elderly that we the increases made in the public income moment. in Washington are about to reduce programs have helped to raise many elderly over the poverty threshold. In 1976, the per With this withholding proposal already their hard-earned benefits on which underway, President Carter on March 31 centage of elderly in poverty was about 14 told those of us who were at the White they depend for their livelihood.· percent and the average income of the el House for the signing of the omnibus bank Mr. Speaker, I urge those who will derly relative to the non-elderly was about ing bill: "Most significant of all, perhaps, it be our conferees on this reconciliation 52 percent-about where it was in the mid- can help improve our Nation's very low sav legislation to include language in their 1950's. ings rate. Now not much more than 3 report affirming congressional intent INCOME: FUTURE DECADE percent of earnings go into savings, per to maintain benefits at 100 percent of Although discernible gains in the incomes haps the lowest rate in the last 30 years. the Consumer Price Index. of the elderly have been made during the And of course, this small savings rate has The study follows: last decade, this trend is not likely to con been a major factor in increased inflation. tinue in the future because we are not likely This encouragement of savings is important THE DRI (DATA RESOURCES INC.) NRTA to witness the dramatic growth in govern not only to consumers but also to financial AARP STUDY ON INFLATION AND THE ELDERLY ment programs benefitting the elderly nor institutions in the breadth of our financial INTRODUCTION the creation of new and costly programs. system." A recently released report of interest to But inflation is expected to continue with I would urge that the President have his the elderly has been receiving considerable its attendant erosive effects on the elderly's assistants copy his message and make cer media attention. This report is the NRTA standard of living. It is projected that the tain that everyone-right down to the AARP-sponsored study entitled "Inflation real incomes of the elderly will grow, but at lowest bureaucrat-at Treasury and the IRS and the Elderly." a much slower rate than previously and that reads this paragraph. I would like to know The NRTA-AARP has been very con the elderly will again lose ground relative to how IRS can square their promotion of cerned with the impact inflation has been the non-elderly population. withholding with the President's very clear having on the elderly's economic well-being. policy statement in favor of encouraging For this reason, reducing the rate of infla ASSETS/WEALTH: PAST DECADE savings. tion and protecting the elderly from its For the 1967-1976 period, the elderly My friends, I do not think the Congress is impact have been our legislative goals. Re fared very poorly when one considers the going to buy withholding on savings ac cently, media stories have been alleging effect of inflation on their assets: savings, counts or any other idea to discourage sav that, despite inflation, the elderly are stocks/bonds, private pensions, and home ings and make taxpaying any more difficult making substantial gains in their economic ownership. According to the DRI Study, in for the average citizen.e status and have been implying that the el flation clearly eroded the assets of the el derly can now afford to make sacrifices such derly. Interest rates for small savers did not as giving up some of the cost-of-living pro keep pace with inflation. Similarly, the rate tection provided by the social security of return on stock and bond investments RETIREMENT INCOME AND THE system. often fell below the rate of inflation. Infla CPI This theme-the elderly are doing well in tion has also wreaked havoc with private an inflationary environment-seemed to us pensions because most plans do not provide to distort what we observed to be a steady automatic or full cost of living adjustments. HON. DONALD JOSEPH ALBOSTA deterioration in the elderly's economic situ The non-indexed pension of a 1979 retiree is OF MICHIGAN ation. Therefore, we were motivated to con now worth about one-half of what it was in IN THE HOUSE OF REPRESENTATIVES tract with Data Resources, Inc. to support those who were im moving to a climax. So far, there has been "people's army" and the "people's police" prisoned or fired. Now, factory committees perfect order on both sides. The Govern into action against a demonstratively au are sprouting in shop after shop, including ment has refrained from any use of force thentic mass movement of the people. the huge industrial complexes near the and the workers have not rioted or looted or The Polish regime must take into account Baltic, and they communicate with KOR. damaged property. It is an extraordinary how obedient its men under arms would be Suddenly there is coordination for what is situation. Anything can happen. in such a case, and the use of Soviet troops becoming a vast movement. Whatever the · outcome, it is now clear would almost surely provoke armed That is obviously one reason t he authori that the crisis will be another important resistance, however futile. ties have cut telephone and telex lines wi th milestone in the Communist world and, There are many levels to the impasse. Gdanc;k, where the biggest strikes are therefore, in East-West relations. many layers of cynicism and mistrust ac taking place. It is another mistake. Jacek The significance of the confrontation was creted over two generations. The director of K uron, KOR's main spokesman, has been re.flected in two items in the papers here. Polish radio and TV, Maciej Szczepanski, a saying for weeks that the regime should One was a wry little note about a premier hard-liner and a man of critical importance seek to deal with the workers through orga telling strikers that the working class would in this deadlock between the regime and the nizations because nobody will be able to suffer from their actions-an apparent ref ruled, provided an illuminating little exam control them if their pent-up anger ex erence to a six week-old strike of French ple when I talked with him last month. plodes unorganized. fishermen that is blocking channel ports. He spoke proudly of the number of pro He is a responsible man, a moderate and a But, it went on, this was happening not only duction deals he had made with West Euro patriot. Communist officials say they simply in capitalist France but also in Communist pean and American TV. One was for a series cannot accept free unions, but it is in every Poland. of Sherlock Holmes plays, and a copy of body's interest that the Polish regime heed And a French Communist wrote a long Baker Street has been built in Warsaw. The Kuron's warning. If it does, and the chance appeal in Le Monde asking support from his arrangement brings urgently needed hard for settlement has not already been lost, party for Polish workers, saying that they currency. Asked why the Western networks Poland may be able to overcome its crisis are seeking no more than French workers choose to film in Poland, he said that the and develop a more reasonable form of so demand and that they have the same right facilities were good, and, after a pause, that cialism. That would be a historic example, of course they didn't face the kind of union with far-reaching effects. of fraternal sympathy as Bolivian miners and tax problems they have in the West. and Miami blacks. Of course, the Commu If nothing is done until too late, there is nist paper L'Humanite takes no such stand. Now, Polish workers are asking not only likely to be violent upheaval, possibly Soviet for more wages, and food in the shops to intervention. It would be a tragedy not only The issue goes to the core of the ideology. spend them on, but for the right to organize for all directly concerned, but for what Strikes normally are not allowed in Commu and to negotiate. In effect, they are telling hopes remain of mending fractured East nist countries, nor is collective bargaining, the rulers to forget their fine theories and West relations. Poland on top of Afghani on the grounds that the workers own the recognize the right to bargain. stan would be too much. Washington, as means of production and cannot act against The fact is that major groups of Poles well as Moscow. has a stake in how Polish themselves. In theory, they are the masters have already seized these rights. This is un workers are treated as they seek to carry and have no bosses to challenge. precedented and astonishing in the cir- out the old Marxist injunction to unite.e