10066 CONGRESSIONAL RECORD-HOUSE May 4, 1992 HOUSE OF REPRESENTATIVES-Monday, May 4, 1992 The House met at 12 noon. Mr. HAMMERSCHMIDT. Mr. Speak­ nouncement about my future in the er, I deeply regret to inform my col­ House of Representatives. I am not re­ leagues of the passing of one of the tiring. DESIGNATION OF SPEAKER PRO great former Members of Congress-the Mr. Speaker, I say this because great TEMPORE Honorable Wilbur Daigh Mills. play has been given to many of our col­ The SPEAKER pro tempore (Mr. Chairman Mills died this past Satur­ leagues who are leaving the Congress, MONTGOMERY) laid before the House the day in Searcy, AR, after suffering an creating frustration, despair. following communication from the apparent heart attack at his home. Two great Members retired last Speaker: He is remembered as one of the most week, the gentleman from Florida, WASHINGTON, DC, influential congressional leaders of the LARRY SMITH, and the gentleman from May 4, 1992. 20th century. As chairman of the Ways Michigan, BOB TRAXLER. I think those I hereby designate the Honorable G.V. and Means Committee for almost 20 of us that are staying deserve a slight (SONNY) MONTGOMERY to act as Speaker pro years, his imprint has been indelibly pat on the back. I was in Taos, NM, re­ tempore on this day. placed on our Nation's Tax Code. There cently. And I had a constituent say, THOMAS S. FOLEY, are many who considered Chairman "Congressman RICHARDSON, don't let Speaker of the House of Representatives. Mills the most knowledgeable individ­ the negativism in Washington cramp ual in the country when it came to your style. Only the Congress can PRAYER matters of tax, Medicare, Social Secu­ make things better, and take credit for rity, and trade. People from around the being in Congress." The Chaplain, Rev. James David world sought his counsel and expertise Mr. Speaker, I am here to say that I Ford, D.D., offered the following pray­ long after he retired from Congress. am proud to be a Member of Congress. er: Chairman Mills represented the peo­ This is a good institution with a lot of As we bow our heads in prayer, 0 ple of the Second District of Arkansas good people, staff and Members, and we God, we pause to admit our weaknesses for 38 years. It was my privilege to have got a job to do. and confess our faults as individuals serve with him from January 1967 to Yes, there are frustrating moments, and as a people. We know that we have 1977. It was also my privilege to know but on the whole there is no job in the not lived with respect and understand­ him as a close friend. I'm sure many world where one can make a greater ing toward each other or with the Members will want to remember and difference to help people. unity of spirit that is Your will for us. honor Chairman Mills at a later time Mr. Speaker, last week came and went with We affirm that we are armed with the for his prominent contribution to our two more of our colleagues announcing they grace of forgiveness and the renewal of Nation. would be calling it quits after this current Con­ hope, and we seek to be good stewards A memorial service will be held on gress. Florida's LARRY SMITH and Michigan's of the responsibilities that have been Tuesday at 2 p.m. in Kensett, AR. Boa TRAXLER adding their names to the grow­ given us. For Your good grace and I extend my deepest sympathies to ing list of Members who have decided to part promise of renewed hope, 0 God, we his wife, Clarine "Polly" Billingsley ways with this House-52 so far, and the offer this prayer of thanksgiving and Mills; two daughters, Martha Sue number is sure to grow. praise. Amen. Dixon of West Simsbury, CT, and Re­ I had the great fortune of working closely becca Ann Yates of Wayne, NJ; his with both Congressman SMITH and Chairman brother, Rogers Mills of Kensett, AR; TRAXLER-both men devoted to the public THE JOURNAL his sister, Emma Gene Yancy of good truly interested in trying to make a dif­ The SPEAKER pro tempore. The Marianna, AR; six grandchildren and ference. Their departure is a great loss for this Chair has examined the Journal of the two great-grandchildren. institution. last day's proceedings and announces It is unclear how many more of our col­ to the House his approval thereof. leagues will step down into this well and an­ Pursuant to clause 1, rule I, the Jour­ ANNOUNCEMENT BY THE SPEAKER nounce they too are going home for good. I, nal stands approved. PRO TEMPORE for one, will not join the parade of Members The SPEAKER pro tempore. The who are making the trek to this spot to say Chair desires to announce that pursu­ their goodbyes. My name will be on the ballot PLEDGE OF ALLEGIANCE ant to clause 4 of rule I, the Speaker this November. God willing and with a few The SPEAKER pro tempore. Will the signed the following enrolled joint res­ votes of support from my constituents, I will gentleman from Wyoming [Mr. THOM­ olutions on Friday, May 1, 1992: return to this House as a proud Member of the AS] please come forward and lead the S.J. Res. 174. Joint resolution designating 103d Congress. House in the Pledge of Allegiance. the month of May 1992, as "National Despite the harsh criticisms that are thrust Mr. THOMAS of Wyoming led the Amyotrophic Lateral Sclerosis Awareness upon us, despite the efforts of some partisan Month"; and Pledge of Allegiance as follows: S.J. Res. 222. Joint resolution to designate thugs who attempt to destroy this institution, I pledge allegiance to the Flag of the Unit­ 1992 as the "Year of Reconciliation Between and despite the terribly nasty smell and taste ed States of America, and to the Republic for American Indians and Non-Indians." of modern-day politics, I believe there is no which it stands, one nation under God, indi­ higher calling than public service. Serving in visible, with liberty and justice for all. this House, working together, we have the PROUD TO BE A MEMBER OF unique ability to make a positive difference in CONGRESS the lives of 250 million Americans and millions THE HONORABLE WILBUR D. (Mr. RICHARDSON asked and was of our neighbors abroad. MILLS given permission to address the House I am not embarrassed to be here; I'm not (Mr. HAMMERSCHMIDT asked and for 1 minute and to revise and extend ashamed to be a Member of the House. I am was given permission to address the his remarks.) proud of the work we do and hope to return House for 1 minute and to revise and Mr. RICHARDSON. Mr. Speaker, to this great institution to serve in the 103d extend his remarks.) today I am making a political an- Congress.

DThis symbol represents the time of day during the House proceedings, e.g., 0 1407 is 2:07 p.m. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. May 4, 1992 CONGRESSIONAL RECORD-HOUSE 10067 DEALING WITH THE CRISIS IN LOS with the American political system, a Before I go into that I want to sum ANGELES system today driven by big money, by up, for the sake of understanding and (Mr. WOLF asked and was given per­ big special interests, by big political clarity, the limitations as well as the mission to address the House for 1 action committees, but not by the peo­ jurisdiction of the Committee on Bank­ minute and to revise and extend his re­ ple who are meant to drive that sys­ ing, Finance and Urban Affairs. I also marks.) tem. happen to be the chairman of the Sub­ Mr. WOLF. Mr. Speaker, I have sent The President can take that sad and committee on Housing and Community today a letter to the President about painful situation, Mr. Speaker, and Development. the crisis in Los Angeles which I would make it better by signing the campaign 'rhe average citizen, and I would al­ like to share with the Congress. finance reform bill that has been just most hazard to say the average Mem­ HOUSE OF REPRESENTATIVES, sent to him this week by the other ber of Congress, and not members of Washington, DC, May 4, 1992. body, having first been passed in this these committees in either the House Hon. GEORGE BUSH, body some weeks ago. I urge the Presi­ or the Senate, would conclude that the The White House, dent to make constructive situations Committee on Banking, Finance and Washington, DC. from these two sad and painful si tua­ Urban Affairs has jurisdiction on mat­ DEAR MR. PRESIDENT: Having watched with tions, the situation in Los Angeles and ters that would seem obvious and com­ horror at the events in Los Angeles last the situation in the American political monsense to have jurisdiction, but we week, I want to urge in the strongest pos­ sible way that Jack Kemp be delegated to system. do not. As a matter of fact, there are aggressively represent the Administration in areas of activity that I think the aver­ helping to rebuild the city and in dealing age citizen who reads his Constitution THE NATIONAL GUARD IN LOS would absolutely conclude that the with similar problems facing the inner cities ANGELES throughout the United States. Committee on Banking, Finance and Jack's faith and experience give him the (Mr. MONTGOMERY asked and was Urban Affairs of the House had juris­ understanding and burden to address these given permission to address the House diction, but it does not. Such things, issues. There is no better time for the Ad­ for 1 minute and to revise and extend ministration to demonstrate its ability to for instance, as the constitutional his remarks.) mandate-not a privilege, it is a man­ find positive solutions to the crises facing Mr. MONTGOMERY. Mr. Speaker, urban families and communities. date-that the Congress control the Mr. President, you appointed Jack Kemp the California National Guard is doing purse, Treasury; that it also set and de­ to be secretary of the Department of Housing a good job in a tough situation in Los termine the value of its coinage or cur­ and Urban Development and it was a good Angeles. At 10 o'clock on Wednesday rency, as we say nowadays. appointment. Assigning him now to attack night, individual National Guardsmen However, that is not really so, the problems in Los Angeles and in cities were alerted to report for duty, and by through a variety of things that I have across our nation will show every American 5 o'clock Thursday morning, more than discussed on prior occasions and only your Administration's continuing commit­ 2,000 guardsmen were in their armories ment to bringing people together and moving will sum up; for example, in the matter our country forward. being briefed and getting equipment. of affixing the value of the money and Sincerely, By noon on Thursday, the National coins thereof, that was long abdicated FRANK R. WOLF, Guard got its first mission from local by the Congress after the passage of Member of Congress. law enforcement officials to go on the the Federal Reserve Board Act of 1913 This Congress has not been that re­ streets. At 1 o'clock Thursday after­ and the creation within the activities ceptive to what Secretary Kemp and noon the first units, an MP company of that board of such a thing as the the Bush administration has wanted to from the 40th National Guard Division, Open Market Committee. do, and Jack Kemp has come up with were on security patrol in the Lake­ That was structured not unlike the creative ideas on behalf of the adminis­ wood area of Los Angeles. set-up of our mother country, England, tration, such as enterprise zones and By Friday, more than 9,000 California but today the operations of the Fed are elimination of capital gains for the National Guardsmen had been called up actually of an epoch and an era that no inner cities. Now is the time to give and federalized. Over 7,500 of that num­ longer reflects the activities in Eng­ Jack that ability to speak out whereby ber are actually on the streets, patrol­ land or Great Britain. this Congress and the administration ling and providing security. For example, it used to be that the can come together in a bipartisan man­ Mr. Speaker, this situation shows Chancellor of the Exchequer could, ner to solve these problems. how important t.he National Guard is until actually not too long ago, deter­ in its State mission. The Guard is pro­ mine the fall or rise of any cabinet or tecting human life and property as part government in England by just the PAINFUL SITUATIONS ARE TESTS of its dual role of serving the States power to set the value of the bills, of OF PRESIDENTIAL LEADERSHIP and local governments in time of cri­ notes, bills, so forth. Unfortunately, (Mr. MAZZOLI asked and was given sis. today the Federal Reserve, through its permission to address the House for 1 Open Market Committee, has that minute and to revise and extend his re­ 0 1210 power. marks.) It used to be, and for at least six dif­ Mr. MAZZOLI. Mr. Speaker, the test NATIONAL AND INTERNATIONAL ferent chairmen of the Federal Reserve of leadership is to take sad and painful THIEVERY IN HIGH PLACES Board that I have observed since I have situations and make something con­ The SPEAKER pro tempore. Under a been a member of the Committee on structive from them. The President previous order of the House, the gen­ Banking, Finance and Urban Affairs, it faces such sad and painful situations, tleman from Texas [Mr. GONZALEZ] is repeatedly came up, as late as Chair­ one of which is in Los Angeles. recognized for 60 minutes. man Volcker, to tell us that interest As a result of the riots and the dif­ Mr. GONZALEZ. Mr. Speaker, I con­ rates were something that was totally ficulties there, the President has the tinue on the subject matters that I and completely out of their control. opportunity of taking that sad and have been discussing for some years, They could not control that. At one painful situation and creating a whole but with particular relevancy on two point I said, "What is it, an act of new agenda for the cities of America. major concerns as a Member and also God?" And he looked at me rather con­ He has the opportunity of creating a now as the chairman of the House of descendingly and did not say anything, whole new agenda to ensure the civil Representatives Committee on Bank­ just smiled and puffed on that cigar he and hwnan rights of every citizen of ing, Finance and Urban Affairs. This used to puff. this Nation. could be said to be about thievery in The truth is that now we have had Another sad and painful situation the high places, national and inter­ the last two chairmen repeatedly say, President faces, Mr. Speaker, has to do national. "Of course we can control interest 10068 CONGRESSIONAL RECORD-HOUSE May 4, 1992 rates. In fact, we are going to respond done what has been going on, and con­ and daily headlines, but we do not hear to the political pressure of our Repub­ tinues to go on and is going on even anything about it now. But BNL, we lican conferees in power in the admin­ now as I speak this morning. And that had been talking on BNL for almost a istration and we are going to reduce in­ is international banking. year before BCCI broke, and the BNL, terest rates." Unfortunately, the last I have said this before. It was not from a certain standpoint as far as our three years of Mr. Volcker's regime he until 1978, and that only after the 1975 national interests are concerned is far lost that power as far as controlling it, hearings that I caused to bring then as more insidious than the BCCI. But that in view of external forces, inter­ a lower situated member of the com­ is also tied in with another aspect that national forces, over which he was able mittee, to my home city of San Anto­ I have spoken out about with no seem­ to preside over the loss of that control, nio where we had a 2-day hearing show­ ing impact on anybody, including my no matter what we do domestically, as ing this international and rather insid­ fellows on the Banking Committee or is being proven today by the so-called ious velocity of moneys easily trans­ those off the Banking Committee, and control. But nowadays we have defini­ ported with no detection whatsoever in that has to do with the debauching or tion of interest rates. We have short­ huge volumes across the international the fast approaching little value of our term interest rates, long-term interest border, and its impact on some of the money and our currency. I have been rates. local banking institutions. Roughly, speaking out on this since 1979, specifi­ The prime rate can mean at least we have limitations and I explained cally in August 1979. Nobody seems to three or four different things, depend­ one with respect to the fixing of money much care even now, even though it ing on the definition. It did not used to or the value thereof. Today it is the has everything to do with my col­ be that way, and it certainly was not Federal Reserve Board that cranks the leagues constituents' jobs, and what that way until the end of Volcker's re­ printing presses, it is not the politi­ their money is worth, which would be gime. cians, it is not the Congress. It is the important even in the case of defense. The truth of the matter is that the Federal Reserve Board, even though What good does it do to have a highly Federal Reserve Board is totally inde­ the Federal Reserve Board is defined in touted defense system, No. 1 in the pendent of anything that Congress the Federal Reserve Board Act of 1913 world today, if the value of the money wants to do, or for that matter the ex­ as being the fiscal agent of the U.S. is not worth much? The dollar has lost ecutive branch, unless, as in 1972, the Treasury. But it has turned out to be about 60-plus percent of its value just Chairman then, Mr. Burns, was sympa­ the other way around, and we will go since 1986, and against gold it is over thetic to Mr. Nixon's plight in the 1972 into that in a few minutes with respect 1,000 percent loss of value. recession that summer, which inciden­ to the domestic activities over which I wanted to develop today two things tally coincided with Watergate, and did we also have little or no control, but that are linked and are interchange­ do a little bit about the so-called on which I have introduced legislation able, and the BNL and the BCCI are money supply. in order to seek protection for the in­ just symptoms of the malaise and how They have all kinds of jargon to try terests of the greatest number in our the local corrupt setup domestically to explain this, but the simple lan­ collective body known as the American happens at a critical moment in the guage that anybody can Understand, society. world's development to sync with the these are not matters of esoteric or se­ So, generally, contrary to the com­ international corrupt system, crimi­ cret or magical things left to the high monly held belief that the committee nally oriented, and which will be very priests of finance, but they just hap­ would have jurisdiction over such difficult to have policed worldwide un­ pened to hide their thievery in this things as the heavy, you could say less there is some new leadership, and kind of secrecy where it is the secrecy symbiotic or indissoluble link between I think it is a little too late for that, to keep from the American people what banking and securities investment, or emanating to try to safeguard not now is going on that has enabled it, not all Wall Street speculation and gambling, just this national interest but mostly of their jargon and gobbledygook and but we do not. And the reason is very the industrial nations' interest. everything else that they enshroud simple. Some time ago when my fellow Domestically, the one thing I have whenever they went to their activities. Texan, the great Sam Rayburn was discussed here at the time I introduced 0 1220 Speaker, he got angry at the then what is known as H.R. 4450, together chairman of the Banking Committee. with and in company with my distin­ I wanted to make sure Members un­ So he then placed the jurisdiction of guished colleague on the Banking Com­ derstand that the Federal Reserve such things as the Securities and Ex­ mittee, Mr. STEPHEN NEAL of North Board is not a Federal agency. It is a change Commission over in what used Carolina, as an attempt to prevent creature of and responds to the com­ to be the Interstate and Foreign Com­ what happened with the recent scandal, · mercial banking system, private, and merce Committee but which is now which incidentally has also been very the way it has worked its independ­ known as the Energy and Commerce much hushed up, of the so-called ence, it is totally independent even Committee. So we do not have jurisdic­ Salomon Bros. scandal. Let me explain though it was not created from on tion of that. about that, because I think that it high. It was the Congress that created But we have jurisdiction over some never really has been. Since the De­ the Federal Reserve. So the Congress aspects of it, like the Federal Reserve partment of Treasury has been doing though, for whatever good reason or Board, and that is crucial. everything it can to hide its insol­ bad, is, and has been very unwilling I have discussed the BNL, the Italian vency, it has to depend on such entities and probably will be. bank and its agency facility in Atlanta as the quote-unquote Salomon Bros. The tragedy is that all of this seems at great length. I have brought out and others. to be waiting just for this whole house some of its actual alliances and some of cards to fall around our heads, and of its henchmen involved in criminal D 1230 this time even beyond our shores, and exploitation and being conveniently But the Treasury has been too deeply ricocheting back and fourth. There are used by our national leaders to do such involved and intertwined with this connections. I have been developing things as provide letters of credit in very same financial entities or indus­ one aspect because of our responsibil­ the hundreds of millions and billions of try of our country. So that in order to ity in the Banking Committee where dollars for Iraq, right up to the very try to regulate and prevent, and I do we at least can say that we attempted point of the invasion of Kuwait. That not think it has or is being prevented, to provide a framework or a system was possible only because, as it is still the abuse reflected in the Salomon whereby these men that the same Con­ pretty much the case even though Bros., we introduced H.R. 4450 from the gresses have placed in charge of regu­ there was that scandal, but more the standpoint of the Federal Reserve lating the banking and financial indus­ BCCI scandal which was the one that Board, because after all, remember try will at least have no excuse to con- seemed to gain the national attention what I said awhile ago, the Federal Re- May 4, 1992 CONGRESSIONAL RECORD-HOUSE 10069 serve Board is the creature and the So now here comes the new guy at long before Gresham's Law began to maidservant of the private banking in­ Salomon who picks up the phone and operate, and then I happened to be here dustry. he calls his buddy, the Secretary of the on this committee with great agony Treasury has to fund what we call, or Treasury, because our Secretaries of watching how the Federal Govern­ try to sell pieces and chunks of the na­ the Treasury, and I am not just talking ment's refusal to protect what human tional debt in the market. Therefore, about Republican administrations. It beings had been protected from ever Salomon Bros. and their like are indis­ goes back to Democratic administra­ since 7,000 years before Christ, and sud­ pensable. tions. The overwhelming majority of denly discover that those States like But the truth of the matter is that them have come from the same stable, mine that did have usury laws or inter­ nowhere has it been brought out that Wall Street. So what does our Sec­ est-rate controls, under the· burden of the Treasury is actually in a way bor­ retary of Treasury, who is a former the Federal Government saying, "Well, rowing from Salomon Bros. and, there­ chief executive officer of what, Dillon, we are taking off interest-rate controls fore, is not going to be too anxious to Read, say? He says, "Well, you know on VA loans for housing, mortgages, et try to regulate and clean up that as­ what, we are going to be lenient." cetera, et cetera.'' pect. So from the Federal Reserve Frankly he just could not afford to cut 0 1240 Board where we have jurisdiction to out the biggest source of borrowings legislate, H.R. 4450 would simply say for the Treasury. What could they do, except under this to the Fed: "You shall no longer But let me tell you how it works. pressure? There are only about two or have this exclusive secret private list There is no regulation of that market. three states that still have some kind, of 39 prime dealers of which Salomon If we get 4450, it will be the first time. and the bankers there and everybody Bros. was king and prince"; until late­ It is in utter secrecy. It is not a sur­ else is complaining daily about how ly, they have not known what to do. prise. It was not to me, but it seems to they cannot compete for capital. The bad part is that the inter­ not even surprise some enough to write So with 1 percent downpayment, old national swings in then at that time, about it. Salomon Bros., et al., and their ilk buy too, because the Japanese have been But I think some of our average the Government IOU's, and they yield 7 heavy purchasers of our debt, and they American citizens who buy bonds or, percent. Then good old Treasury comes have begun to withdraw when they for that matter, lend the Treasury back and pays them 5.75 percent. found out about this thievery on the should not be surprised to know that Now, I do not see how in the world part of Salomon Bros. They began to the Treasury borrows from Wall Street old Jim Fisk, I bet he has turned over say, "Hey, wait awhile, you know, we at a higher interest than it loans to in his grave with envy, and all those want part of that gravy, too." So they Wall Street. big manipulators and thieves right have had Japanese securities which Our handling of the debt is so atro­ after the Civil War, they must be just now are allowed in our marketplace cious. Old Uncle Sam, and that means turning over their bones to see how also, but in a much lesser way, in­ the taxpayers, are paying compound in­ slick it is done nowadays and getting volved. terest on that debt. It will never get away with it. But what does it mean when Japa­ out. The whole house of cards, I am Now, what were the profits made by nese investments in our debt amount afraid, as much as we have warned for the five firms, chief firms, Salomon to 35-plus percent of that debt? Does it 20 years, as much as we still have with­ Bros., being the king of them all and not mean that we have sold our eco­ in this period of time, and even on then four others? Well, just one oper­ nomic and financial freedom in the these other manifestations, now social ation there, one year, a billion dollars most vulnerable place which is our disturbances, we have been predicting plus. Treasury? Does it not mean it has been this since 1982, but it just seems that Do you wonder that we have a debt sold out, and with it, the economic and we have reached a point until there is that keeps increasing incrementally, financial independence of America? a crisis, and then the reaction is knee­ where today just the interest on the That is exactly what it means. jerk and very disastrous in the envi­ debt amounts to the total amounts of Now, because Treasury risks involv­ ronment which we find ourselves in money, my dear colleagues, what you ing insolvency allowed Salomon Bros. this world today. vote for the national defense of this to fix the price, but in what an insid­ Anyway, is it not nice the way these country? ious way. Now, this has never really big old boys can borrow, and the ,..rreas­ I am asked, "Well, Henry, if you had been brought out. Salomon Bros., as ury pays a higher rate when they bor­ your way, what would be the biggest such, was caught. And why? They row it back? I mentioned there were 39 single thing you would want?" would get so greedy. They had the primary dealers, but Salomon Bros. Well, it is very simple, Solvency, sol­ most privileged, and they had a credit and these dealers, with only 1 percent vency, solvency. We are bankrupt. We card to steal from the Treasury, and downpayment, buy those Government are insolvent on every level of our na­ yet they were so greedy that they lOU's. Those lOU's yield 7-percent in­ tional life, whether it is corporate, overdid themselves to the point where terest. The Fed then loans the money whether it is just plain you and I out not Treasury but competitors began to back to Wall Street at 5.75 percent, and here with the level of debt that we squeal, and that is how the pressure Salomon Bros, even used that debt have piled up, private debt, credit cards builds up to expose that one. It was not paper to buy collateral and use it as and what not, or whether it is the Gov­ Treasury. How could Treasury? collateral on the loans it purchased ernment. We are insolvent. In fact, what has happened since with them. Now, tell me if that is not How long will it take before that then? Oh, the Secretary of the Treas­ a scam of the worst kind. nasty mega-truth is conveyed? ury announced that he was suspending Why, these penny-ante loan sharks Now let us go to the international. I Salomon Bros., but then a few days out here that are now legalized usurers have been speaking on the BNL. I have later, they got a new guy. They made a and have been, and I have spoken spoke on the BCCI. We have had hear­ fall guy, and I forget his name. He goes against that since 1966, but are now le­ ings. In fact, this coming Friday, God out. Another one comes in. He says, galized. Usury is legal. I remember how willing, the committee will have hear­ "Oh, you know, he was insane." surprised so many citizens seemed to ings on BNL and some of the related In other words, he pled insanity. He be in Virginia, Texas, wherever I went, things that will give us a little more was crazy; they do not know why he to know that there are no national in­ knowledge of what it is that can be did it. "We are really puzzled." The terest-rate caps. Why, on a national done to synchronize our protective tragedy is that the whole doggone se­ level those went out in the 1865 Na­ agencies or Departments. One of the curities industry has been involved in tional Currency Act just about the prime guests will be the Director of the this kind of game, just not that much time that President Lincoln was assas­ CIA, Mr. Gates, and that is this coming gravy though. That is what happened. sinated, and then, of course, it was not Friday. 10070 CONGRESSIONAL RECORD-HOUSE May 4, 1992 Now, we also had hearings on the in the publication known as World in this international financial activi­ BCCI. We have not terminated them. Press Review, entitled "The Dark Side ties area in the United States, with no­ We still have places to go; but in the of International Banking." It points body, no Federal agency, no State meanwhile, the first evidence of this out, among other things, that is with agency-and remember these agencies crumbling house of cards of our so­ the lax international situation where are chartered by the individual States. called insolvencies in the financial in­ all this money is supposedly going to In the case of BNL of Atlanta, it was stitutions, where we cannot even get the new middle Europe or East Europe the Georgia Banking Commission. the House to just lift the cap, the day can be so susceptible to be converted We had the commissioner before us, cap of April 1, on the moneys that are and used to do what has been done in and he had not the slightest idea that necessary because you have got to countries like Luxembourg, and now this giant fraud had been going on close down and pay out the depositors all the Caribbean islands, the Cayman right around him. of the defunct institutions that are out Islands. The Federal Reserve Board did not, there. They are dead as a doornail. Why would any corporate activity or either. And what happens if all of a sudden financial activity go to these islands to So, what do we have? Well, fortu­ the Government cannot keep its pledge get their charters? Obviously, they es­ nately, because of those two scandals, to pay out the full insurance of up to cape American taxes, and second they BCCI and BNL, we had a minor adden­ $100,000? Are we waiting to see what do not have to show their jerry-built . dum to the law known as the 1978 happened in Ohio, Nebraska first, in very fragile, if existing, financial cap­ International Banking Act, but not 1985? Then in Ohio and then in Mary­ italization. enough. land where you still have some 15,000 So can there be any BCCI? Of course, I contend that, as I am speaking here Marylanders who have not gotten their there will be many more, but even be­ today, I have a trillion high-velocity money back? I have talked to some tween BNL the Italian Bank and the dollars in the country. But then, when who could not and did not get their BCCI, there is also a relationship. you add the international flow, which I money back that they had saved by I want to bring out that we have had have also been speaking about-in fact, dint of hard work to get their kids in our investigative capacity a great in the last appearance before Chairman through college. wonderful relationship with the Roman Volcker of the Federal Reserve Board Now, if you think that has not been Italian Senate investigating commit­ in the summer of 1987 before a commit­ pathetic to me, you just do not under­ tee. As a matter of fact, they were the tee, I asked him that one question. I stand what it is to feel this, when you source of some information that was said, "Mr. Chairman, what, if any­ have felt it in your bones and done denied to us by our Federal depart­ thing, do you still believe ought to be more than just sit there. You have spo­ ments and agencies. done, or do you believe anything ought ken out, to find it is like a coyote out Now, recently, you read about the to be done, about this more than half a in the brushwood in my country scandals in Japan and about the drop trillion dollars that is running world­ braying to the Moon at midnight. wide between Bonn, Germany, Paris, Now, let us go to this international, in the · Japanese stockmarket. Are these isolated? No, they are all inter­ London, New York, Tokyo, transmitted the BCCI. Fortunately, the BCCI, as instantaneously, and that is highly well as BNL, had not and did not get, I connected. I am going to quote: speculative and that it is not money think it was accidental, full banking following goods or commerce or inter­ facilities; that is, where they could get 0 1250 change of commerce or values, but it is unwitting Americans and take in de­ "The problems of bank surveillance money speculating on money?" posits; but they did in England, where are posing themselves on an inter­ And he looked at me, and he said, for the first time in 100 years they had national scale. What, for example, do "Nothing. There is nothing we can do." the first bank failure of any size, a big two recent financial scandals-the Well, that is a lot of nonsense. They bank. Nomura Securities scandal in Japan sure could. At the same time he was re­ What were the reasons? Why should and the one involving the Atlanta porting to us, having the Federal Re­ this have happened when it did not branch of Italy's Banca Nazionale del serve Board as the representative of even during the Depression, when we Lavoro [BNL]-have in common? They the banking industry, not the Con­ had our banking moratorium and are two cases that demonstrate the gress, entering into the so-called BIS Franklin Roosevelt closed the banks? danger of situations where economic agreements or the Cook Commission Canada did not and neither did Eng­ power is concentrated in a few hands," convergence on capital standards, land, but all of a sudden, wham. One of the biggest ones, well, the says Paolo Bernasconi, an expert on which in effect made the big, big pow­ same reason that we had our problems economic crime. In Japan, the shock of ers and has been ever since I can re­ here, deregulation under Maggie the scandals was very powerful: In the member. As a matter of fact, the BIS, Thatcher. Remember? There was an af­ course of a few days, powerful institu­ the Bank for International Settle­ finity of interest between those two tions such as Nomura and the coun­ ments, even during World War II, when Tories known as Maggie Thatcher and try's three other large brokerage com­ Franklin Roosevelt, our great Presi­ Ronald Reagan, and they did the same panies, Daiwa, Yamaichi, and Nikko, dent, said, "We are going to build 50,000 thing and we had the same occurrence appeared to international officials and warplanes," he could not move one in the case of Great Britain, where for local account holders to have been in until the German cartel in the BIS re­ the first time in 100 years they had not business with the local Mafia and at leased the right to magnesium which had any big bank failure. the service of a few industrial groups we needed. Well, those are just symptoms. What and government industries. The BNL So, this kind of money has no nation­ I have been trying to tell my commit­ Atlanta affair is not as clear, although ality, no allegiance, no loyalty to any tee colleagues, sure, we are going into investigations have added new and im­ particular country. this. Somehow or other, we called a portant details. According to Gian So, Mr. Speaker, time's awasting. If meeting, we called a hearing, we can­ Maria Sartoretti, who runs BNL's fi­ we had had any kind of leadership in not get too many Members. There are nancial institutions department, the our country, as I have been advocating other things that have priority. I tell head of the Atlanta branch had set up for over 20 years, we would have taken them that these are just symptoms, a network of illegal activities involv­ the lead when we still had leverage. which means that we have a real task. ing suspicious Bulgarian, Turkish, and Rather than that, we meekly and su­ The reason is simply deregulation English companies to traffic arms and pinely yielded to such things as BIS. brought lack of surveillance, and it did drugs. Incidentally, the United States is not a so on the international level. I had tried to bring out the fact that voting member of BIS, the Bank for I want to refer to a very interesting we have $800 billion, although it is International Settlements, the real article that appeared this last October more than that now, around $1 trillion power. May 4, 1992 CONGRESSIONAL RECORD-HOUSE 10071 It is not IMF, but BIS. ment has gone out and slaughtered in­ internationally money chasing money; What did those standards do? This is nocent victims in Panama with the that is, currency speculation. What is what our bankers are complaining most deadly weapons known to man, that speculation on? It is on the value about. It imposed rigid capital stand­ and over 200,000 Arab Moslems, is it not of our money. ards, which means premiums. And true the spark gap is greater than the And what I have said is, and I have what did the Federal Reserve Board do? pen? said it repeatedly, and I keep on saying it even though it seems almost frus­ It imposed them on all of the banks, 0 1300 not just those that are involved in that trating and hopeless: We are the only kind of international transactions; the But nevertheless, it is no excuse for people who have had through history overwhelming majority, 92, 92 percent, anybody falling over. All I say is that, that great privilege of paying our debts do not involve themselves in that kind after last week's actions on the part of in our currency. We continue the of trade. But these others have to pay. this great House, I hardly know what course we are on, we are and have been, In fact, that is what the real com­ to say to my colleagues who, in the and are immediately vulnerable to the plaints have been about, not the fee in­ majority, ran helter-skelter and turned dollar being replaced as the inter­ creases because of the bailout now and their back on the greatest threat that national reserve currency unit. If that the insolvency of the bank insurance has ever been made to the independ­ happens, it means we will have to pay fund. Let us not kid ourselves about ence, and the coequality and the sepa­ this enormous debt overhang in some­ that, either. rateness of this great body since the body else's currency, and, therefore, we Mr. Speaker, if you cringe at even al­ First Congress in 1789. I ask, "How can will be as we were in the beginning lowing the very facility that is in I expect you to stand up to defend the when the founding leaders of this coun­ charge of resolving the remaining most vital, yes, difficult, yes, politi­ try were fighting in the mercantile sys­ S&L's and just lifting the cap on the cally hazardous?" Big powerful people tem. date, not giving any more money-and do not like to be antagonized. They Mr. Speaker, on the verge of the 21st we appropriated that money last No­ never have. But we are charged with a century we are going into a mercantile vember-how in the world are you duty, and it is not what you, the ma­ system where we no longer produce. We going to be ready when the next round jority, ran away from, your most basic are not the producers. We are net im­ comes and the bank insurance fund, trust. Why? porters, and we are dependent on some­ known as BIF, which we still have not As I said to the court, it is not my body else's judgment and willingness, faced? All we did earlier, last year, was right, granted by way of privileges and and I will guarantee that I would not to tell the FDIC, which is the insur­ immunities in the Constitution, from bet a penny on it for the value of our encroachment from the executive money or currency. ance arm, the insuring arm of the de­ Now that sounds remote, Mr. Speak­ posit insurance system, which inciden­ branch and, for that matter, the judici­ er, I have been telling, and I have been tally is at the bottom of our problem; ary. It is the privileges and immunities belonging to the people who elect me. saying, this, and it sounds, remote. But it has been corrupted, it has been di­ it means the jobs of our constituents, verted from the congressional intent. Not I. I am here transitorily. I will be gone, and somebody else will be here. as they already have been affected. It The Congress sat by supinely and so is tied in. But how long? Oh, how long? have the banking committees, despite But those inherent rights the Constitu­ tion has given, not us, temporaries, but When it happens, it is not going to be some of our outcries, which have been like the 19£17 stock market thing. It is marginalized, and protested that there the people who elect us, and that means that it will be most difficult to going to be like not even the uprising is no congressional intent ever placed in L.A. in law but that the decisions made by defend even that which I spoke of a Incidentally, I took the committee regulators like Volcker on his policies while ago. and the subcommittee to L.A. on Feb­ of "too big to fail," where they would Now I am going to also close out by ruary 11. We had our hearing right in pay out billions of dollars to those that referring to a recently issued book en­ the middle of where all this is taking had way more than the insured titled "The Money Bazaar" by Andrew place. We have written a report be­ amount. J. Kreiger. This young man is like one cause we have gone to several States. I Now, the average citizen, the average young lady I read about who wrote a started out on January 7 in Bridgeport, American depositor, has no more than book called "Play Money" giving her CT. We went to South Carolina. We $8,750. So, where have all these billions experiences about how at 19 years of have been to Baltimore, MD, as well as of dollars gone previously? age she made over $2 million in a Cleveland, OH, where they have lost But now, where they finally got month or so on Wall Street. Now my over 30 percent of their industrial pro­ them, where they are behaving like colleagues know, if that happened, ductive goods just in the last 10 to 15 they should have, the Congress holds there is something wrong somewhere, years, and to Milwaukee, and then to back on even doing the very minimal and I was speaking about how the Wall L.A. The report at that time that we to prevent what I will call an uncon­ Street activity, even today, does not were preparing, it indicated the highly trollable crisis. reflect what it is supposed to. volatile situation that existed, not just The fact remains that there are so Mr. Speaker, Wall Street is supposed in L.A., but particularly at the time. many levels in which the people, that to be reflecting the bonds, paper of cor­ Now, when this happens, that which I is, through their agents or their rep­ porate activity, producing, manufac­ hope will not, but which I must report resentatives, the Congress, the only na­ turing, and it is not. What is now is: it the possibility thereof, it is going to be tional policymaking body that they is a manipulated market. Clearly the more like the one we probably saw on must depend on, have lost any control 1987 fiasco showed its manipulation. TV described as the Oakland fire, and is now so multilayered, what can I That has not stopped. The handling where suddenly these citizens are say­ do? In the words of the poet Audin, "I of the Treasury, of its securities; I have ing, "Oh, what's happening to my have but one voice to undo the folded just explained to my colleagues what a house? There it is, up in flames. What lie." scam it is. That has not stopped. do I do now?" But were any pre­ I know that. We have also been wise So, here is a young man that now de­ cautions taken? Was any anticipatory enough to mark an observation made scribes how he has made his millions as planning done? Of course not. by another American writer, who said, a recent graduate from the, I think, It just seems that, short of that, no­ "The day of the pamphleteer and the Wharton School of Business. But then body wants to think about what can be political oration is gone." We live in he learned that with just a simple com­ done, and there are things that can be the day of the engineering. The spark puter he did not have to work with done in anticipation in order to attenu­ gap is greater than the pen. Salmon Bros., which he started out ate, lessen, the disastrous con­ Well, being that our American peo­ with, or the others. He could do it at sequences of sheer folly, greed, and ple, at least in their name, our Govern- home with this trillion dollars-a-day thievery. 10072 CONGRESSIONAL RECORD-HOUSE May 4, 1992 The articles referred to are as fol­ fact, every bank is supposed to respect the In the end, what lessons can be drawn from lows: regulations set up by its country of origin. the BCCI scandal? Obviously, the links be­ [From Il Mondo, Milan, Italy] But some countries have, as is said, a "loose tween the banking world and secret of crimi­ mesh." Among these is Luxembourg, the nal organizations are growing closer. But THE DARK SIDE OF INTERNATIONAL BANKING other side of the axis on which the BCCI there is more: The BCCI affair marks the (By Enzo D'Antona and Giuseppe Sarcina) story developed. passage of the criminal economy into a new Non-existent controls, ignored warnings, In the grand duchy, legal conditions are phase of trafficking. permissive laws: Criminality has been given ideal for developing and carrying out illegal the green light. And new European Commu­ trafficking. New companies are not required [From Dagens Naeringsliv, Oslo, Norway] nity (EC) directives to prevent money-laun­ to reveal the nationalities and places of resi­ AROUND THE WORLD'S FINANCIAL HAVENS dering risk no longer being of any use. dence of their shareholders and administra­ (By Tom Marthinsen) The reason is that a no man's land now tors, for example. Nor are they required to cuts Europe in two. This axis was unthink­ present their balance sheets. At the end of Sheltering one's capital in tax havens can able until recently. On one side is London, May, however, Luxembourgers had to accept quickly end in money lost these days. Shady, Europe's oldest and most solid financial city, the EC directive on money laundering. even criminal, people are thriving in many and on the other is Luxembourg, with its Luxembourg is not alone. Even the bank­ banking and financial sectors; so are drug banking-secrecy laws and reputation as a ers of Switzerland, the traditional strong­ money and other black-market funds. Pan­ traditional financial haven. hold against the fall of banking secrecy, ama was once considered a safe place to put The comfortable distinction between the have had to accept a compromise. Having funds. But when problems arose for General "opaque" in banking-the financial havens­ abolished the mechanism that allowed trust­ Manuel Noriega, money began flowing out of and the "transparent" banking systems that ees and lawyers to open accounts for uniden­ Panamanian banks to Barbados, the Nether­ exist elsewhere no longer holds. A virus is in tified clients, Switzerland has sanctioned the lands Antilles, the Cayman Islands, circulation, and any banking institution can banks' obligation to denounce money that Montserrat, and many other places. After be struck by it, especially as long as control they suspect comes from illegal sources. the U.S. invasion in 1989, Panama had trou­ mechanisms continue to follow different pro­ Yet, despite these regulations, the Swiss ble getting back on its feet financially be­ cedures from country to country and banks system is still under accusation. Swiss mag­ cause, among other reasons, Noriega's bank are regulated on the basis of sometimes-con­ istrate Michele Rusca, who recently presided contacts were not the only ones tainted by trasting laws. over a major money-laundering trial, says cocaine money. There are indications that, In June, after four years of investigations, that 5 percent of deposits in Swiss banks under current President Guillermo Endara, Manhattan District Attorney Robert Mor­ could be from illegal sources. "But the coun­ Panama has its share of cocaine-infected genthau indicted Bank of Credit and Com­ tries that are really at risk," he says, "are banks. merce International (BCCI) founder Aga Has­ those whose governments are compliant. One also finds snakes in other tax para­ san Abedi and the bank's former chief oper­ Cases such as that of BCCI occur where the dises: ating officer, Swaleh Naqvi. Both are Paki­ links of the chain are weak." THE CARIBBEAN stanis. According to the charges, BCCI has Where could another BCCI case explode? Two years ago, possibly the largest tax­ operated as a kind of parallel system since it Rusca has no doubts. The risk is in Eastern haven scandal of them all swept over was founded in 1972. It has engaged in Europe: Hungary, Romania, Poland-coun­ Montserrat, a small British colony in the money-laundering; clandestine financing, al­ tries that want to attract investment. They Caribbean. In 1989, 347 banks were licensed to legedly for the CIA; selling arms to the Ira­ could find dirty money to launder or clients operate in Montserrat; the number is now nian government; and opening coded ac­ aiming to use their banks for the most indis­ down to 40. This drastic development came counts to which the likes of Abu Nidal, the criminate operations. as a result of the British governor general's head of the most extremist faction of the The problems of bank surveillance are pos­ order to the local police in July, 1989, to raid Palestinian terrorists, had access. All this ing themselves on an international scale. the Montserrat-based First American Bank. happened amid the apathy of British mone­ What, for example, do two recent financial Scotland Yard's fraud department sent its tary authorities, starting with Chancellor of scandals-the Nomura Securities scandal in experts, while the British government pub­ the Exchequer John Major, before he as­ Japan and the one involving the Atlanta licly warned against using the offshore sumed his current post of prime minister in branch of Italy's Banca Nazionale del Lavoro banks on the island. The British government 1990. (BNL)-have in common? "They are two also commissioned Rodney Gallagher of the The failure of the British banking-control cases that demonstrate the danger of situa­ accounting firm Coopers and Lybrand to sub­ mechanisms is the circumstance that is seen tions where economic power is concentrated mit a detailed report on the banking sectors as most astonishing at EC headquarters in in a few hands," says Paolo Bernasconi, an of Montserrat, Anguilla, the British Virgin Brussels. Few imagined that the banking expert on economic crime. In Japan, the Islands, the Turks and Caicos Islands, and swindle of the century, as the BCCI affair shock of the scandals was very powerful: In the Cayman Islands. has been labeled by the Anglo-Saxon press, the course of a few days, powerful institu­ Gallagher concluded that the many cases could occur outside of the restricted circle of tions such as Nomura and the country's of fraud on Montserrat were due to a lack of traditional financial havens and cause the three other large brokerage companies, regulations and the island's close connec­ City of London-Europe's premier financial Daiwa, Yamaichi, and Nikko, appeared to tions with U.S.-based financial people of market-to quake. In the wake of the scan­ international officials and local account doubtful reputation. Responsibility for the dal, the telephone was almost always busy at holders to have been in business with the offshore banking sector was transferred from the Bank of England. And for the bank's local mafia and at the service of a few indus­ the local minister of finance of the British 48,500 British account holders, as well as trial groups and government ministries. The governor. Gallagher now works for the Brit­ their fellow account holders throughout the BNL Atlanta affair is not as clear, although ish High Commission in Barbados and is re­ world, it was not easy to get in touch with a investigations have added new and impor­ sponsible for bringing order to the British­ Bank of England official who could provide tant details. According to Gian Maria Caribbean tax havens. any information. All that one could get was Sartoretti who runs BNL's Financial Institu­ Most of the tax havens in the Caribbean a strong invitation to be patient and advice tions Department, the head of the Atlanta are former or present British colonies, in­ not to give too much credence to British branch had set up a network of illegal activi­ cluding the Bahamas, Bermuda, and the Cay­ newspapers, which have been saying that at ties involving suspicious Bulgarian, Turkish, man islands. The Caymans, in fact, are the least 10 years will be needed to unravel the and English companies to traffic arms and most successful tax haven of them all. Just BCCI muddle. drugs. a one-hour flight from Miami, these islands Was BCCI an isolated case? Or was it the Why are scandals such as that of Nomura, have the world's greatest density of fax ma­ first obvious sign of a change in the British BNL Atlanta, and BCCI coming to light only chines and, on paper, the world's fifth-larg­ banking system and, thus, in international now? One reason is that international est banking sector, after the U.S., Japan, banking? Under former British Prime Min­ detente seems to have favored a settling of Great Britain, and France. ister Margaret Thatcher, says Socialist Eu­ accounts, so to speak: A general cleanup has In contrast to many other places, the Cay­ ropean Parliament Member Enzo Mattina, been set in motion that has overrun the old mans have kept their house tolerably clean "deregulation did not involve only social pacts sealed by countries' secret services­ of unsavory activities. Today, acknowledg­ policies but also finance and the banks . . . especially those of the U.S.-and subversive ing their dependence on the U.S., the Cay­ In other times, [alarms] about BCCI would organizations; guerrilla groups, such as mans have an agreement that puts confiden­ not have fallen on deaf ears. There would Nicaragua's Contras; and governments, such tiality aside when the American authorities have been a thorough investigation, and we as that of Iran. Moreover, the lack of uni­ believe that drug money has found its way to would not have come to this point." formity in international controls has al­ the banks there. Bewilderment about banking-control lowed the infiltration of organized criminals The banking sector in the British Virgin mechanisms in Europe is now emerging. In and terrorists into international finance. Islands is not highly developed, on the other May 4, 1992 CONGRESSIONAL RECORD-HOUSE 10073 hand, but there is already concern about aftereffects of the 1988 financieJ crisis. New­ bers, two hardworking Members, like meddling by the Colombian drug cartels. comers Ireland and Malta have had quick many others that have retired, two With only a small police force, one boat to success. In Dublin, 150 companies are newly very goo.d friends of mine and many control a gigantic archipelago, and one plane registered, resulting in 700 much-needed jobs. operated jointly with the police of the neigh­ And in Malta, 300 companies were set up in others in this Chamber. boring colony Turks and Caicos, many fear the country's first year as a tax haven. The Mr. Speaker, I want to talk today that the islands' attempt to become a seri­ companies are from Great Britain, Hong about the L.A. riots, and I want to talk ous tax haven may be strangled by the Co­ Kong, Italy, the Soviet Union, and Arab to this country and my colleagues in lombian mafia's long tentacles. countries. None of the world's largest insur­ the context of what I, as a Member of There has been no scandal yet, but the ance companies or banks has established it­ CoDgress from a rural State that does British Virgin Islands' extremely liberal self in Malta thus far. But the possibility not have an urban area larger than laws for setting up trust companies have re­ that Europe's newest tax haven will attract 50,000, Santa Fe, my hometown, what I sultt:ld in suspicions that, among other attention is absolutely at hand. make of the L.A. riots, as every citizen things, the funds of the late Philippine Presi­ dent Ferdinand Marcos and money from a in this country is trying to understand large American robbery have been channeled THE NEED FOR A COMMISSION TO what they themselves make of these through the islands' companies. STUDY AND REPORT ON THE riots. Other Caribbean havens include the Turks QUALITY AND EQUALITY OF I am not going to review what has and Caicos Islands, whose chief minister was AMERICAN LIFE happened. I am simply going to state arrested for drug trafficking in 1985; the Ba­ what I believe we need to conclude and (Mr. BENNETT asked and was given hamas, which long ago put its faith in its what we need to do. flag of convenience for shippers and its tax permission to address the House for 1 There are going to be a lot of solu­ advantages; and Anguilla, another British minute and to revise and extend his re­ tions discussed. The President is meet­ colony that has thus far managed to avoid marks.) scandal. ing with his Cabinet this morning. Un­ Mr. BENNETT. Mr. Speaker, I was doubtedly the Congress will investigate THE PACIFIC shocked at the verdict in the Rodney the riots and propose some dramatic The tax havens of the Pacific are more of King suit and strongly support a new legislation. But hopefully, every citi­ an unknown quantity. Japanese, American, trial under the civil rights legislation. zen and every individual will look deep and Australian capital is now being lured to The American people strongly agree on the region's mini-states. inside and decide how he or she can this. We are also shocked at the deaths deal with the problems of poverty, of In 1971, the British introduced liberal regu­ and the violence that came about upon lations in Vanuatu (then called the New Heb­ racism, of moral values, of joblessness, rides). When the islands became independent the announcement of the verdict. and many other urban-related prob­ in 1980, Vanuatu hoped to become another, On the affirmative side, we are all lems that affect our country. bigger Bahamas: There were no income confirmed in our belief that the quality First, what happened in Los Angeles taxes, foreign-exchange controls, inheritance of American life can be improved and was a cry for help. The last thing we taxes or taxes on profits from securities that this should be done on the basis of can do and should do is to do nothing, trading. equality among all our citizens. Elsewhere in the Pacific, the Cook Islands, to ignore the problem and basically To assist discussion of ways to im­ state that now that much of the vio­ which are in a so-called free association with prove the status quo, I have today in­ New Zealand have attracted more than 500 lence in Los Angeles is contained, that foreign companies, while the kingdom of troduced a measure designed to create our job is done. The worst thing we can Tonga lures capital with liberal regulations a U.S. Commission on the Quality and do is to do nothing. and watertight bank accounts. Fiji is also Equality of American Life. Second, we have to conclude that our attempting to attract capital, partly by re­ The purpose of the Commission system of justice in the Rodney King building the confidence that was lost earlier would be to advise the executive and trial failed, pure and simple. The police this year after the military interfered with legislative branches of our Government government operations. officers were guilty, but the jury did on at least an annual basis, as to what not see it. Attempts to attract foreign capital are is good in American life and as to what also under way in the Indian Ocean. There, it Third, we must conclude that the is South African capital that is being wooed. is not; and the extent to which there is looting and the violence is wrong and Mauritius has long had liberal laws and se­ an equal sharing among all segments of should be condemned. A mechanic who crecy provisions for financial information. the American population. The bill has was outraged by these verdicts was EUROPE a 5-year sunset clause but if the Com­ killed by the mob. It did not matter In Luxembourg, people have been nervous mission proves to be helpful it could be that he was outraged. His death and all about the establishment of a common Euro­ continued. It is a relatively inexpen­ of the killings were so wrong and pean Community (EC) financial market be­ sive way to get underway improve­ senseless. cause, in theory, this could destroy the coun­ ments which obviously need • to be We must conclude that millions in try's financial strength. In practice, how­ made. Rodney King himself said it best the inner cities, mostly blacks, have ever, the opposite has occurred: Luxembourg when he looked to the future and said, lost contact with the values and aspi­ has become stronger as a tax haven inside "Let's try to work it out." the EC. Removal of regulations in other EC rations of the rest of the country. countries have simply made it easier for rich These millions are growing up without people to channel money to Luxembourg. It 0 1310 access to opportunity, without ever has established itself as an alternative to holding a job, being on welfare and Switzerland for not-so-rich people from Bel­ THE L.A. RIOTS, WHAT WE NEED never owning any property. It is clear gium, the Netherlands, Germany, and TO DO the current economic policies have France. The SPEAKER pro tempore. Under a made these social problems in the Switzerland itself has long worried about previous order of the House, the gen­ cities worse. And we cannot go empha­ trends in the EC. The increased competition from other tax havens has been blamed for tleman from New Mexico [Mr. RICHARD­ sizing just law and order, as we do the recent falling off of capital coming into SON] is recognized for 60 minutes. every year with a crime bill. We have the country. So has the fact Swiss banking­ Mr. RICHARDSON. Mr. Speaker, to also advance a social agenda, not secrecy laws are no longer as strict as they since I delivered the 1-minute speech just income redistribution, not just used to be. about my not retiring from the Con­ more money, but a social agenda that The smaller European havens are worth gress just this morning, two other includes better schools, enhanced job mentioning: Liechtenstein, Jersey, Guern­ Members of the House, the gentleman training, better prenatal care, and full sey, the Isle of Man, and Gibraltar. Less from New York, Representative MATT access to Head Start programs, not to known to many are Malta, Cyprus, Madeira, Ireland, Andorra, Monaco, and, of all places, McHUGH and the gentleman from mention a large jobs program for the Hungary. Michigan, Representative BoB DAVIS cities. The Isle of Man and Gibraltar are both suf­ have announced their retirements from Mr. Speaker, we have created a per­ fering from political crises and from the the Congress, two outstanding Mem- manent underclass, a culture of pov- 10074 CONGRESSIONAL RECORD-HOUSE May 4, 1992 erty. We must take steps to redress training and employment services, 40 mark some of the money that we have this wrong. We cannot just emphasize percent for community development, cut from defense spending and other the economic roots of crime and dis­ community service and social service: programs and channel the savings into order, although they are relevant. We block grant programs, 82 percent for a domestic city jobs program, not a have to give great emphasis to moral subsidized housing, 63 percent for job massive one, but one with new direc­ values and not just more government training, 40 percent for community de­ tions tied to training, to work, to fu­ programs. After all, the need to make velopment, and community service. ture employment, to education. We have to start somewhere with the our streets safer is a primary agenda 0 1320 item for black America, too. young people that have lost hope, that Polls show blacks are most concerned There is no question that the decline feel despair, in these cities. with crime and are strong advocates of in Federal interest and in Federal pro­ When Washington intervenes, we the death penalty. Urban disorders is grams, has been a significant factor. If have to strengthen existing local insti­ not just a black or minority problem. we combine this declining involvement tutions and neighborhoods, strengthen It is a national problem. with the cities' losing population and local neighborhood entities, go into the The root of the Nation's racial prob­ political power as well as the fact that, neighborhood, do what the new police lems or racial crisis is not just eco­ less attention is given to urban prob­ chief in Los Angeles plans to do and set nomic, but it lies in the disintegration lems as the Nation becomes suburban, up police facilities in the neighbor­ of community and values and the de­ there's little wonder why urban issues hoods, not just in one central station cline of commonly accepted rules. Peo­ have largely disappeared from the de­ but where they can interact with fami­ ple loot because they are not part of bate of the Presidential candidates. lies and community leaders, go deeply the system. They feel left out. Think of the debates in the last 10 into the nejghborhoods and talk to peo­ It is terribly wrong, but that is the years on the problems of urban Amer­ ple and dialogue and come to medi­ fact. Gangs are the substitutes for ica, maybe one or two. They are not ation and understanding, instead of the community, for family. Guns, drugs, powerful issues that grab the elector­ extreme cynicism and lack of commu­ and gangs replace church, family, ate. They are not sexy, they are only nication that exists in the city of Los neighborhood, and work. And we have made sexy when we have a tragedy of Angeles among the police and their to acknowledge that many times race these proportions. own people. is at the root of the problem, and we The Federal deficit is clearly a very We have had no policy concerning have to face it. serious problem. Today our Govern­ our cities for 10 years, nothing. We Millions wake up every day without ment is deeply in debt and the average have ignored them. We have simply any hope. Many of those are young family income adjusted for inflation said, "We will do it later after we get blacks. has remained stagnant, so we cannot the deficit under control." We have to Each one of us must decide how we expect the middle class to be generous bring the deficit under control, but can deal with this issue of race in a to the poor in the inner cities when what has happened in Los Angeles is constructive way. Instead of thinking they themselves are struggling to keep the crying of a Nation, the crying of an of a massive civil rights bill, let's their heads above water. underclass that has been left behind think about how we can better under­ Mr. Speaker, what do we need to do? and cannot defend itself. stand each other. Let us not limit our Let us just forsake the analysis and Those young black males, those thoughts to just blacks. It is Latinos. figure out what we as Americans, black young black women, those minority It is Asian-Americans, too. and white and yellow and red, need to communities do not have lobbyists By the year 2010, minorities are going do together, Congress, Democrat, Re­ here in Congress. They cannot speak up to be among the largest work force publican, President. to us and say, "Come on, Congress and numbers in this country. The city of One, we have to stop fixing blame President Bush, address these prob­ Los Angeles, in the year 2010, will be and focus on the solutions. The very lems." We, elected officials and the primarily a minority community. We first thing that should happen is the people of this country that obviously are all in this together. We need to deal Justice Department should charge the are outraged, have to take the initia­ with the issue of racism one on one. officers with violations of civil rights tive. We have to have initiatives in the There are many social factors, not laws. This has to be done as part of the areas of war on crime and drugs, war just poverty, contributing to the prob­ solution. It is quite clear our legal sys­ against poverty and despair, as I said, lem. Part of the difficulty in the inner tem needs to be reinvigorated by the not just throwing money at them but cities is a great decline of well-paying, Justice Department taking this action getting our best minds to work to­ gether to try to resolve them. low-skilled jobs. But the overall prob­ on civil rights grounds. This should We also want to make sure that our lems are social and moral, family calm some of the unrest that exists minority groups in this country that breakdown, the rise of violent crime, today and that has produced over 50 are growing need to work closer to­ and the decay of social institutions in deaths. gether. It is not just a conflict between the inner cities. But all of the money Second, it is important that the black and white but it has become in the world is not going to make up President and the Congress name a black against brown, black against yel­ for the loss of family values and ac­ type of Kerner Commission that will low, brown against yellow, especially countability. try to understand the new set of prob­ in urban areas where there is a white Our cities, nonetheless, need help. lems that have emanated since the flight from the cities moving into the Unemployment, health care, education L.A. riots 27 years ago, since the riots suburbs. We have minority commu­ housing, and other substandard living that gripped our cities many, many nities that are young and growing and conditions have gotten dramatically years ago, taking into account that we sometimes do not have jobs and do not worse in the last 10 years. Although have a deficit problem, but also taking have any hope for the future and do not deep skepticism remains whether Gov­ into account that just throwing Gov­ have opportunity. ernment programs alone can do the job ernment money at some of these prob­ Minorities need to work just as much and make the difference, clearly less lems did not work. Instead we need to with each other. Look what happened Government intervention and re­ focus on family values, the breakdown with the Korean store owners who were sources is not going to make things of the family, prenatal care, unwed looted. They have rights, too. They are better. And our assistance to cities to mothers, crime, drugs, and a strategy, part of the American melting pot and deal with some of these problems in the a policy, and new initiatives that we do they are citizens that contribute to last decade has declined. Between 1981 not have. this country. They must be part of the and 1992, spending adjusted for infla­ We have to have an inner city jobs solution. tion declined as follows: 82 percent for program in this country, and this is We also have to bring white Ameri­ subsidized housing, 63 percent for job going to take money. We should ear- cans and black Americans, including May 4, 1992 CONGRESSIONAL RECORD-HOUSE 10075 black professionals, and black entre­ (The following Members (at the re­ with Serious Emotional Disturbance, pursu­ preneurs, together to help us resolve quest of Mr. WOLF) and to include ex­ ant to 20 U.S.C. 1232(d)(l); to the Committee traneous matter:) on Education and Labor. these issues. Too often it is black poli­ 3440. A letter from the Administrator, En­ ticians and white politicians. We need Mr. COMBEST. vironmental Protection Agency, transmit­ common citizens, those that perhaps Mr. VANDER JAGT. ting a report entitled "Radon in Schools"; to have not been living in urban areas, Mr. BROOMFIELD. the Committee on Energy and Commerce. those that have already made it and (The following Members (at the re­ 3441. A letter from the Assistant Secretary have seen a part of the economic pie quest of Mr. RICHARDSON) and to in­ for Legislative Affairs, Department of State, that is so important. clude extraneous matter:) transmitting notification of a proposed li­ Mr. Speaker, this is just a limited Mr. ANDERSON in 10 instances. cense for the export of major defense equip­ ment sold commercially to Greece (Trans­ perspective on my part. I do not have Mr. GoNZALEZ in 10 instances. mittal No. DTC-15-92), pursuant to 22 U.S.C. all the answers. I am a Member of Con­ Mr. BROWN in 10 instances. 2776(c); to the Committee on Foreign Affairs. gress from New Mexico, where we have Mr. ANNUNZIO in six instances. 3442. A letter from the Secretary of State, basically good race relations, although Mrs. LLOYD in 10 instances. transmitting President Bush's determination we have large Native American and Mr. HAMILTON in 10 instances. that the Board of the International Fund is, Hispanic communities. We have a Mr. DE LA GARZA in 10 instances. as a whole, broadly representative of the in­ black community, too. Yes, we have Mr. SCHUMER. terests of the communities in Ireland and Northern Ireland, and that disbursements problems, but I come as a Member of Mr. LAUGHLIN. from the International Fund are distributed Congress totally open, that we have to Mr. KANJORSKI. in accordance with the principle of equality act on what has happened in Los Ange­ Mr. BORSKI. of opportunity and nondiscrimination in em­ les. The worst we can do is ignore the Mr. SKELTON in two instances. ployment, without regard to religious affili­ problem. The worst we can do is ap­ Mr. LEVINE of California. ation, and will address the needs of both point a commission that will forget. Mr. FALEOMAVAEGA. communities in Northern Ireland, pursuant The worst we can do is just to condemn Mr. ASPIN. to Public Law 99-415, section 5(c) (100 Stat. the looting and the violence. 948); to the Committee on Foreign Affairs. 3443. A letter from the Acting Assistant Yes, that is wrong, but that is also Secretary of State for Legislative Affairs, the easier thing to do. We have to deal SENATE ENROLLED BILL SIGNED transmitting the annual report on inter­ with these problems of the underclass, The SPEAKER announced his signa­ national terrorism for 1991, pursuant to 22 a permanent underclass, a culture of ture to an enrolled bill of the Senate of U.S.C. 2656f; to the Committee on Foreign poverty that has been created in our the following title: Affairs. 3444. A letter from the Chairman, Federal cities, men and women that live day to S.J. Res. 174. Joint resolution designating day on welfare without a job, without Maritime Commission, transmitting a copy the month of May 1992, as "National of the semiannual report on activities of the hope, their families breaking up. They Amyotrophic Lateral Sclerosis Awareness inspector general for the period October 1, never see any kind of opportunity. Month,'' and 1991 to March 31, 1992, pursuant to Public Government handouts alone will not S.J. Res. 222. Joint resolution to designate Law 95-452, section 5(b) (102 Stat. 2526); to help the. We need new and creative 1992 as the "Year of Reconciliation Between the Committee on Government Operations. Government incentive policies with America Indians and non-Indians." 3445. A letter from the Assistant Attorney private sector involvement. General, transmitting a draft of proposed Mostly, Mr. Speaker, we as Ameri­ legislation to improve the admissions proc­ ADJOURNMENT ess at airports and other ports of entry; to cans need to look deep down into our­ the Committee on the Judiciary. selves and see if we in effect can elimi­ Mr. RICHARDSON. Mr. Speaker, I 3446. A letter from the Chairman, U.S. Sen­ nate those little traces of bigotry and move that the House do now adjourn. tencing Commission, transmitting a report racism that we all have, and under­ The motion was agreed to; accord­ of amendments to the sentencing guidelines stand that all of those young people ingly (at 1 o'clock and 30 minutes p.m.) together with the reasons therefor, pursuant that are out there hopeless, many the House adjourned until tomorrow, to 28 U.S.C. 994(p); to the Committee on the times not knowing where the next Tuesday, May 5, 1992, at noon. Judiciary. 3447. A letter from the Secretary of Trans­ meal is coming from, relying on their portation, transmitting a draft of proposed gangs for any kind of social betterment EXECUTIVE COMMUNICATIONS, legislation to revise the definitions of pas­ and economic betterment, that we do senger in section 2101 of title 46, U.S. Code, care about them, that they are part of ETC. and for other purposes; to the Committee on this country and that we as a Nation Under clause 2 of rule XXIV, execu­ Merchant Marine and Fisheries. need to respond better than we have. tive communications were taken from 3448. A letter from the Assistant Secretary the Speaker's table and referred as fol­ of the Army (Civil Works), transmitting are­ port entitled "Buy American Study Report"; SPECIAL ORDERS GRANTED lows: to the Committee on Public Works and 3436. A letter from the Comptroller Gen­ Transportation. By unanimous consent, permission to eral, the General Accounting Office, trans­ 3449. A letter from the Chairman, U.S. address the House, following the legis­ mitting a review of the President's 5th International Trade Commission, transmit­ lative program and any special orders through 72nd special messages for fiscal year ting the 69th quarterly report on trade be­ heretofore entered, was granted to: 1992, pursuant to 2 U.S.C. 685 (H. Doc. No. tween the United States and nonmarket (The following Members (at the re­ 120-326); to the Committee on Appropriations economy countries, pursuant to 19 U.S.C. quest of Mr. RICHARDSON) to revise and and ordered to be printed. 2441(c); to the Committee on Ways and 3437. A letter from the President and Means. extend their remarks and include ex­ Chairman, Export-Import Bank of the United 3450. A letter from the Acting, Office of the traneous material:) States, transmitting a report involving Unit­ U.S. Trade Representative, transmitting a Mr. DEFAZIO, for 5 minutes, today. ed States exports to the Czech and Slovak report concerning eliminating or reducing Mr. ANNUNZIO, for 5 minutes, today. Federal Republic, pursuant to 12 U.S.C. foreign unfair trade practices for the period Mr. RICHARDSON, for 60 minutes, 635(b)(3)(i); to the Committee on Banking, July through December 1991, pursuant to 19 today and on May 5. Finance and Urban Affairs. U.S.C. 2416, 2413; to the Committee on ways Ms. KAPI'UR, for 5 minutes each day, 3438. A letter from the District of Columbia and Means. on May 5, 6, and 7. Retirement Board, transmitting financial 3451. A letter from the Secretary, Depart­ disclosure statements of Board members for ment of State, transmitting on behalf of the calendar year 1991, pursuant to D.C. Code, Secretary of State certification required EXTENSION OF REMARKS section 1-732, 1-734(a)(l)(A); to the Commit­ under section 609(b) of Public Law 101-162, tee on the District of Columbia. pursuant to Public Law 101-162, section By unanimous consent, permission to 3439. A letter from the Secretary of Edu­ 609(a)(5)(C) (103 Stat. 1038); jointly, to the revise and extend remarks was granted cation, transmitting notice of Final Funding Committees on Appropriations and Foreign to: Priorities-Program for Children and Youth Affairs. 10076 CONGRESSIONAL RECORD-HOUSE May 4, 1992 3452. A letter from the Secretary of Inte­ SUBSEQUENT ACTION ON A RE­ Mr. ARMEY, Mr. BURTON of Indiana, Mr. HAM­ rior, transmitting a copy of the April 1992 PORTED BILL SEQUENTIALLY RE­ MERSCHMIDT, Mr. EWING, Mr. JOHNSON of Proposed Final Comprehensive Outer Con­ FERRED Texas, Mr. LENT, Mr. LIGHTFOOT, Mr. MCMIL­ tinental Shelf [OCS) Natural Gas and Oil Re­ LAN of North Carolina, Mr. MOORHEAD, Mr. source Management Program for 1992-97; Under clause 5 of rule X the following ROHRABACHER, Mr. SAXTON, Mr. SMITH of jointly, to the Committees on Interior and action was taken by the Speaker: Texas, Mr. SCHAEFER, Mr. UPrON, Mr. SMITH Insular Affairs and Merchant Marine and H.R. 776. Referral extended for a period of Oregon, Mr. LEWIS of California, Mr. Fisheries. ending not later than May 5, 1992. CRANE, Mr. BREWSTER, Mr. DAVIS, Mr. WIL­ 3453. A letter from the Assistant Attorney H.R. 3247. The Committee on Science, SON, Mr. SKEEN, Mr. HEFNER, and Mr. General, Department of Justice, transmit­ Space, and Technology discharged. Referred MCEWEN. ting a draft or proposed legislation to reau­ to the Committee of the Whole House on the H.R. 4536: Mr. BATEMAN, Mr. LANCASTER, thorize the Office of Justice Programs, and State of the Union. Mr. DORNAN of California, Mr. PARKER, Mr. its components; jointly, to the Committees HERGER, and Mr. MCNULTY. on the Judiciary and Education and Labor. H.R. 4944: Mr. ERDREICH and Mr. MOOR­ PUBLIC BILLS AND RESOLUTIONS HEAD. 3454. A letter from the Secretary of Health H.J. Res. 240: Mr. BAKER and Mr. Doo­ and Human Services, transmitting the 1991 Under clause 5 of rule X and clause 4 of rule XXII, public bills and resolu­ LITTLE. annual report of the Federal Advisory Com­ H.J. Res. 406: Mr. LOWERY of California, mittees which provided advice and consulta­ tions were introduced and severally re­ Mr. OBERSTAR, Mr. GILCHREST, Mr. LIVING­ tion in carrying out his functions under the ferred as follows: STON, Mrs. JOHNSON of Connecticut, Mr. Social Security Act, pursuant to 42 U.S.C. By Mr. ARMEY: HASTERT, Mr. HAMMERSCHMIDT, Mr. WASHING­ 1314(f); jointly, to the Committees on Ways H.R. 5053. A bill to amend section 9(a) of TON, Mr. HOUGHTON, Mr. LEWIS of California, and Means and Energy and Commerce. the National Labor Relations Act to allow Mr. GILMAN, Mr. CAMP, Mr. PACKARD, Ms. employees to enter into contracts with em­ DELAURO, Mr. WHEAT, Mr. DUNCAN, Mr. ployers without the intervention of a bar­ HUTTO, Mr. HANSEN, Mr. HAYES of Illinois, gaining representative; to the Committee on Mr. COBLE, Mr. CHANDLER, Mr. BOEHLERT, REPORTS OF COMMITTEES ON Education and Labor. Ms. MOLINARI, Mr. WELDON, Mr. RICHARDSON, PUBLIC BILLS AND RESOLUTIONS By Mr. BENNETT: Mr. VALENTINE, Mr. PASTOR, Mr. CARR, Mr. H.R. 5054. A bill to establish a Commission HENRY, Mr. BALLENGER, Mr. GILLMOR, Mr. Under clause 2 of rule XIII, reports of on the Quality and Equality of American BATEMAN, and Mr. GALLEGLY. committees were delivered to the Clerk Life, and for other purposes; to the Commit­ H.J. Res. 407: Mr. SERRANO, Ms. SNOWE, and for printing and reference to the proper tee on the Judiciary. Mr. MORAN. H.J. Res. 429: Mr. RHODES, Mr. BORSKI, Mr. calendar, as follows: MCCOLLUM, Mr. SPRATT, Mr. BATEMAN, Mr. ADDITIONAL SPONSORS [Submitted May 1, 1992] MOODY, Mr. ABERCROMBIE, Mr. BLACKWELL, Under clause 4 of rule XXII, sponsors Mr. COUGHLIN, Mr. ANDERSON, Mr. DOWNEY, Mr. BROWN: Committee on Science, were added to public bills and resolu­ Mr. DYMALLY, Mr. WEISS, Mr. MFUME, Mr. Space, and Technology. H.R. 776. A bill to tions as follows: ESPY, Mr. MOAKLEY, Mr. ASPIN, Mrs. provide for improved energy efficiency; with UNSOELD, Mr. HOYER, Mr. NEAL of North amendments (Rept. 102-474, Pt. 2). Ordered to H.R. 261 : Mr. MARTINEZ. Carolina, Mr. CONYERS, Mr. HAYES of Illinois, be printed. H.R. 7'1.7: Mr. KILDEE. Mr. OXLEY, Mr. NATCHER, and Mr. KILDEE. H.R. 840: Mr. RAY. H.J. Res. 454: Mr. ANDREWS of Maine, Mr. Mr. ROE: Committee on Public Works and H.R. 1424: Mr. STEARNS, Mr. BILIRAKIS, Mr. Transportation. H.R. 776. A bill to provide EDWARDS of California, Mr. SPRATT, Mr. LIV­ CLINGER, Mr. MACHTLEY, and Mr. MCGRATH. INGSTON, Mr. GUARINI, Mr. VENTO, Mrs. for improved energy efficiency; with amend­ H.R. 1497: Mr. ALEXANDER. ments (Rept. 102-474, Pt. 3). Ordered to be H.R. 2463: Mr. MONTGOMERY and Mr. DAN­ BOXER, Mr. KLUG, Mr. FASCELL, Mr. LIPINSKI, printed. NEMEYER. Mr. GLICKMAN, Mr. CHANDLER, Mr. KOST­ MAYER, Mr. SISISKY, Mr. SCHIFF, and Mr. PE­ [Submitted May 4, 1992] H.R. 2624: Mr. PERKINS. H.R. 3918: Mr. GALLEGLY, Mr. GUARINI, and TERSON of Minnesota. Mr. FASCELL: Committee on Foreign Af­ Mr. MANTON . H.J. Res. 470: Mr. GINGRICH, Mr. ANDERSON, fairs. H.R. 776. A bill to provide for improved H.R. 4018: Mr. PETERSON of Minnesota. Mr. QUILLEN, Mr. RINALDO, Mr. WOLF, Mr. energy efficiency; with amendments (Rept. H.R. 4076: Mr. GEREN of Texas and Mr. JONES of North Carolina, Mr. BROWDER, Mr. 102-474, Pt. 4). Ordered to be printed. BLACKWELL. COYNE, Ms. PELOSI, and Mr. ROWLAND. H.R. 4083: Mr. RICHARDSON , Mr. POSHARD, H. Con. Res. 282: Mr. HARRIS, Mr. GILMAN, Mr. CLAY: Committee on Post Office and Mr. GUARINI, Mr. NUSSLE, Mr. NAGLE, Mr. Civil Service. H.R. 3681. A bill to amend title Mr. THOMAS of Georgia, Mr. BONIOR, and Mr. SKAGGS. RAVENEL, Ms. LONG, Mr. KLUG, Mr. HAMIL­ 5, United States Code, to make election day TON, Mr. DIXON, Mr. PERKINS, Ms. MOLINARI, a legal public holiday, with such holiday to H.R. 4268: Mr. COMBEST, Mr. FIELDS, Mr. NICHOLS, Mr. GALLEGLY, Mr. MARTIN , Mr. Mr. HAYES of Illinois, Mr. GILLMOR, Mr. MIL­ be known as "Democracy Day" (Rept. 102- LER of Ohio, Mr. ALEXANDER, Mr. PETERSON 510). Referred to the Committee of the Whole BARTON of Texas, and Mr. RIGGS. H.R. 4293: Mrs. VUCANOVICH, Mr. COSTELLO, of Minnesota, Mr. HENRY, and, Mr. MOLLO­ House on the State of the Union. Mr. BUSTAMANTE, and Mr. PAYNE of New Jer­ HAN . Mr. BROWN: Committee on Science, sey. H. Con. Res. 295: Mr. TORRES, Mr. BORSKI, Space, and Technology. H.R. 4557. A bill to H.R. 4361: Mr. MRAZEK and Mrs. MEYERS of Mr. EVANS, and Mr. TRAFICANT. authorize appropriations to the Federal Kansas. H. Con. Res. 297: Mr. FROST, Mr. ATKINS, Aviation Administration for research, engi­ H.R. 4414: Mr. WILLIAMS. amd Mr. BUST AMANTE. neering, and development to increase the ef­ H.R. 4419: Mr. FOGLIETTA, Mr. LEHMAN of H. Con. Res. 305: Mr. GOSS, Mr. LIPINSKI, ficiency and safety of air transport; with an California, and Mrs. UNSOELD. Mr. SMITH of New Jersey, Mr. BEREUTER, Ms. amendment (Rept. 102-511). Referred to the H.R. 4461: Mr. INHOFE. MOLINARI, Mr. HORTON, Mr. LAGOMARSINO, Committee of the Whole House on the State H.R. 4488: Mr. DUNCAN , Mr. BILIRAKIS, Mr. Mr. ENGEL, and Mr. ZELIFF. of the Union. LAUGHLIN, Mrs. PATTERSON, Mr. STENHOLM, H. Res. 164: Mr. MCDERMOTT.