November 28, 1979 EXTENSIONS OF REMARKS 33967 of United States personnel in Iran; consid­ Mr. HUBBARD, Mr. LoWRY, Mr. KELLY, and Ms. 238. By the SPEAKER: Petition of the ered and agreed to. 0AKAR. Southern Governors' Association. relative to H.R. 5772: Mr. BONKER. Federal assistance to curtail drug smuggling; H.J. Res. 409: Mr. PAUL. jointly, to the Committees on Foreign Af­ PRIVATE BILLS AND RESOLUTIONS H.J. Res. 426: Mrs. BouQuARD, Mr. COTI'ER, fairs, the Judiciary, and Ways and Means. Mr. EVANS of Indiana. Mr. McDONALD, and 239. By the SPEAKER: Petition of the Under clause I of rule XXII, Mr. QUILLEN. Southern Governors' Association, relative to Mr. MAVROULES introduced a bill (H.R. H.J. Res. 435: Mr. MoTTL and Mr. PATTEN. national coal policy; jointly, to the Commit­ 5986) for the relief of James Ma.biho Rwabu­ H . Con. Res. 208: Mrs. CHISHOLM and Mr. tees on Interior and Insular A!fairs, and In­ hinga; to the Committee on the Judiciary. ALBOSTA. terstate and Foreign Commerce. H. Res. 449: Mr. EDWARDS of Oklahoma, Mr. MINETA, Mr. DIXON, Mr. CLAY, Mr. GORE, Mr. ADDITIONAL SPONSORS McCLOSKEY, Mr. SEmERLING, Mr. FROST, Mr. AMENDMENTS LowRY, and Mr. ALBOSTA. Under clause 4 of rule XXII, sponsors Under clause 6 of rule XXIII, pro­ were added to public bills and resolutions posed amendments were submitted as as follows. PETITIONS, ETC. follows: H.R. 109: Mr. MURPHY of Illinois. H.R. 3948 H.R. 882: Mr. CHAPPELL. Under clause 1 of Rule XXII, the fol­ By Mr. YOUNG of Ala.ska: H.R. 1297: Mr. RoYER. lowing petitions and papers were pre­ -To be considered en bloc. H.R. 1429: Mrs. SMITH of Nebraska. and Ms. sented and referred as follows: Page 4, strike out line 7 and all that follows OAKAR. 229. By the SPEAKER: Petition of the down through line 11 and insert in lieu H.R. 3408: Mr. COLLINS of Texas. Association of the United States Army, Ar­ thereof the following: H.R. 4093: Mr. NEDZI, Mr. YATES, Mr. DON­ lington, Va., relative to the Armed Forces SEc. 2. (a) Notwithstanding any other pro­ NELLY, Mrs. SPELLMAN, Mr. SCHEUER, Mr. of the United States; to the Committee on vision of law or any rule, regulation, or order FOWLER, Mr. CONTE, Mr. RANGEL, Mr. GARCIA, Armed Services. issued pursuant thereto-- Mr. BEILENSON, Mr. PANETTA, Mr. DORNAN, 230. By the SPEAKER: Petition of the 45th Page 5, line 6, strike out "sixty-one years and Mr. WEAVER. annual meeting of the Southern Governors• and six months" and insert in lieu thereof H.R. 4509: Mr. WHITEHURST, Mr. STOCK­ Association, New Orleans, La.., relative to Fed­ "sixty-five years". MAN, Mr. WINN, Mr. COLLINS of Texas, Mr. eral a.id reform; to the Committee on Govern­ Page 5, strike out line 7 and all that fol­ LEACH of Louisiana, Mr. WATKINS, Mr. SHEL­ ment Operations. lows down through line 11 and insert in lieu BY, Mr. EVANS of Georgia, Mr. HALL of Texas, 231. By the SPEAKER: Petition of the thereof the following: Mr. McDONALD, Mr. STENHOLM, Mr. LENT, Southern Governors' Association, relative to (b) No certificate holder may use the serv­ Mr. GRASSLEY, Mr. CHARLES WILSON of Tex­ energy, freight rates, clean air plans, and ices of any individual a.s a pilot if such in(li­ as, Mr. MONTGOMERY, Mr. LO'M', Mr. RoYER, interim primary drinking water standards; vidual is sixty-five years of age or older. Mr. MARTIN, Mr. JENRETTE, Mr. GUDGER, Mr. to the Committee on Interstate and Foreign HANCE, Mr. MADIGAN, Mr. TRAXLER, Mr. LEE, Commerce. H.R. 5297 Mr. BEDELL, Mr. DANNEMEYER, Mr. RUNNELS, :232. By the SPEAKER: Petition of the Mr. SATTERFIELD, Mr. SEBELIUS, Mr. HILLIS, Southern Governors' Association, relative to By Mr. BROWN of Ohio: Mr. JEFFRIES, Mr. PICKLE, Mr. PHILIP M. development of effective coastal protection -Page 11, after line 15, insert: CRANE, Mr. LoEFFLER, Mr. DAVIS of South systems against natural disasters; to the TITLE IV Carolina, Mr. ALBOSTA, Mr. CLINGER, Mr. Committee on Merchant Marine and Fish­ SEC. 401. Of the amounts authorized to be HINSON, Mr. WHITTAKER, Mr. BENJAMIN, eries. appropriated under this Act, such sums as Mr. WYATT, Mr. BROWN of Ohio, Mr. GUYER, 233. By the SPEAKER: Petition of the may be necessary shall be used for the Mr. FORSYTHE, Mr. EDGAR, iMr. PAUL, Mr. Southern Governors' Association, relative to prompt issuance of operating licenses under LEWIS, Mrs. BOUQUARD, Mr. SYMMS, and Mr. truck regulation; to the Committee on Public applicable law, consistent with reasonable KRAMER. Works and Transportation. safety considerations, in the case of the H.R. 4782: Mr. JENRETTE and Mr. QUILLEN. 234. By the SPEAKER: Petition of the following nuclear powerplants: H.R. 4940: Mr. GRASSLEY. Southern Governors' Association, relative to North Anna 2 H.R. 5038: Mr. CARR, Mr. BONKER, and Mr. repeal of the carryover basis rule; to the Salem 2 WALGREN. Committee on Ways and Means. Diablo Canyon 1 H.R. 5040: Mr. BENJAMIN. 235. By the SPEAKER: Petition of the Sequoyah 1 H.R. 5062: Mr. MCCLOSKEY and Mr. Mc­ Southern Governors' Association, relative to McGuire 1 KINNEY. plant closings; jointly, to the Committees on Zimmer H.R. 5377: Mr. EMERY. Banking, Finance and Urban A!fa.irs, and Diablo Canyon 2 Education and Labor. H.R. 5394: Mr. MARKS, Mr. FORD of Michi­ La Salle County 1 236. By the SPEAKER: Petition of the gan, and Mr. KOGOVSEK. Summer 1 Southern Governors' Association, relative to H.R. 5577: Mr. FAZIO and Mr. STENHOLM. Farley 2 foreign trade expansion; jointly, to the Com­ Shoreham H.R. 5649: Mr. BINGHAM, Mr. LEDERER, Mr. mittees on Banking, Finance and Urban Af­ GUARINI, Mr. MOTTL, Mr. EvANS of the Virgin fairs, Foreign A!fairs, and Ways and. Means. San Onofre 2 Islands, Mr. MOAKLEY, Mr. BONER of Tennes­ 237. By the SPEAKER: Petition of the Watts Bar see, Mr. CHARLES H. WILSON of California, Mr. Southern Governors' Association, relative to By Mr. EMERY: RoE, Mr. SABO, Mr. KILDEE, Mr. DoUGHERTY, allocation formulas and eligibility criteria. in -Page 3, line 11, after "Programs" insert and Mr. RICHMOND. Federal community and economic develop­ "(A)". H.R. 5700: Mr. BLANCHARD, Mr. CAMPBELL, ment programs; jointly, to the Committees Page 3, line 14, before the comma insert Mr. FAUNTROY, Mr. EVANS Of Indiana, Mr. on Banking, Finance and Urban A!fairs, Gov­ "and (B) for providing financial assistance D'AMOURS, Mr. CAVANAUGH, Mr. MATTOX, Mr. ernment Operations, and Public Works and to the States to be used for the purchase of VENTO, Mr. LUNDINE, Mr. PAUL, Mr. HYDE, Transportation. radiation monitoring equipment".

EXTENSIONS OF REMARKS

PROPONENTS OF SALT II TREATY leadership and a sound national defense Strategic Arms Limitation Treaty number 2, DON'T CONSIDER UNSTABILITY effort in achieving a SALT II treaty as evidenced by the mail this newspaper re­ which could be in our best interests. I ceives daily. would like to share the editorial with my To q.uickly review what the arms limitation HON. DOUGLAS K. BEREUTER colleagues and request that it be re­ treaties are all about, we must go back to the OF NEBRASKA printed in full in the CONGRESSIONAL late 1960s when President Nixon and Secre­ IN THE HOUSE OF REPRESENTATIVES tary of State Kissinger engineered the first RECORD. weapons treaty, SALT I, with bipartisan Wednesday, November 28, 1979 The editorial follows: support. e Mr. BEREUTER. Mr. Speaker, a re­ PROPONENTS OF SALT II TREATY DoN'T Former President Gerald Ford and Presi­ cent editorial from the Hebron, Nebr., CONSIDER UNSTABILITY dent Carter have gone even further in SALT Journal-Register provides a thoughtful Proponents of SALT II are becoming in­ II negotiations with the Russians. commentary on the importance of strong creasingly active a.s a.re opponents of the 'Educational Television in recent months

• This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the fioor. 33968 EXTENSIONS OF REMARKS November 28, 1979 showed the United States Joint Chiefs of and for ourselves, of our national secu­ terms. No President unilaterally could settle Sta.ff representing the Army, Navy, Air Force rity needs and not of some idealistic con­ for anything less. a.nd Marine Corps purportedly supporting cept of what the world should be like. Suppose there was no treaty. Common the treaty. I know that "America first" is a dis­ sense might inform a President that enough But the Journal-Register feels that a.ny is enough, that we already have amassed ra.tifica.tion of the treaty should be preceded credited slogan because of its historic sufficient nuclear power to devastate the by two things: links to isolationism. But if the idea is whole world, and that funds for nations.I 1. A rapid arms •buildup so that we are combined with our acknowledged duty defense could be expended more sensibly else­ not number two in this increasingly unstable as world leader, I say we get back to that where. The Soviets, for their part, might well world mmtarily or in a.ny sense. idea as soon as possible. come to the same rational conclusion. No 2. A president and congress who wm put At this point I wish to insert in the longer impelled to arm up to the "limita­ America first in our des.lings with foreign RECORD three articles from the Chicago tions" of a treaty, both powers might sub­ countries, particularly the hostile groups Sun Times, November 23, 1979: "It's a stitute prudent judgment for supposed ne­ such as Iran, Russia a.nd Vietnam. cessity. One of the communications we received Goofy Idea-Let's Put a Leash on It"; The Stevens amendment, seeking recon­ this week outlines how a. Nebraska church "Environmental Rules Slow MX Instal­ sideration, is altogether wise. Do we learn council supports the SALT II treaty. But it lation Goal"; and "Aging Titan Missile from history, or do we repeat its hard les­ is better to be preps.red to meet adversity Found a Threat to Its U.S. Crews": sons? By 1990, when Goofy could be fully rather than needlessly 1be enslaved, hu­ IT'S A GOOFY !DEA-LET'S PUT A LEASH ON IT deployed, its loops and tracks and shelters mmated or a third rate power. (By James J. Kilpatrick) will be obsolete. More deadly devices yet will We should act from power in our dealings have been lnvented, and we will see the WASHINGTON.--Sen. Ted Stevens (R­ with our adversa.ries.e racetracks, covered by drifting sand, as so Alaska) struck a blow for sanity the other many pillboxes, so many Maginot lines. day in the matter of strategic warfare. We halven't seen much sanity in that particular ENvmoNMENTAL RULES SLOW MX OUR STRATEGIC FORCES: ARE sector lately. He won adoption of an amend­ THEY RELIABLE? INSTALLATION GOAL ment telling the Carter administration, in w ASHINGTON .-Air Force officials doubt effect, to reconsider the wisdom of Goofy. that the United States can meet its 1986 Goofy is the system devised by the Penta­ goal of deploying the new MX mobile mis­ HON. ROBERT H. MICHEL gon's sons of Rube Goldberg for concealing OF ll.LINOIS sile unless they can cut through a jungle of the MX missile. It is known as Goofy for environmental and land-use regulations. IN THE HOUSE OF REPRESENTATIVES the Walt Disney dog of the same name. And "We are concerned that, without legisla­ it is the nuttiest scheme to come along in Wednesday, November 28, 1979 tion in this area, we cannot meet an initial the name of national security since the CIA operating capability .for the MX in 1986," • Mr. MICHEL. Mr. Speaker, a free na­ proposed to depilate the beard of Dr. Castro. one otncial said. tion's security ultimately depends not on Attend. The idea is as follows: An enor­ Pentagon authorities emphasized that they the nwnber or the quality of its weapons mous chunk of federally owned land out do not intend to waive environmental safe­ but on the wisdom and foresight of its West would be set aside for construction of guards in constructing bases for 200 MX the strangest railway known to man. It missiles, probably in about 50 thinly popu­ people and their elected representatives. would consist of perhaps 200 closed loops, Consider, if you will, three articles that lated valleys in Utah and Nevada. or racetracks. Each loop would have 23 shel­ A "commonsense" way must be found to recently appeared in the Chicago Sun ters located a mile and a half apart. There simplify state and federal regulations, the Times. One tells of the danger posed by would thus be 4,600 shelters. Right? Pentagon officials said. the U.S. Titan II missile. Danger to the Right. Then we would provide 200 freight The officials, who asked not to be named, Soviet Union? No, danger to the Air cars. Each freight car would carry a 20-ton noted that the federal govern_µlent, in effect, Force crews that have to fuel this aged MX missile. Each missile would carry 10 had yielded to the states some of the power to monster with liquid fuel. Yet we have individually targeted warheads. There would control water, air and noise pollution. They to rely on the Titan II as part of our thus be 2,000 warheads on 200 missiles acknowledge that the states might resist any aboard 200 freight cars on 200 loops shut­ federal legislation that could take back some strategic forces. tling about the 4,600 shelters. Right? of those powers. Another article tells of the environ­ Right. All day and all night, week in and Officials said some of the regulations re­ mental battle that is going to come when week out, 200 engines would chug around quire the issuance of permits in complicated the Air Force seeks to deploy the MX the Goofy track, playing the biggest shell procedures that could take up to 10 years and missile. It is conceivable that the MX game ever played. The Soviets would go "we just don't have that time." program could be delayed almost indefi­ crazy trying to figure out which shelters held One possible approach, they said, would nitely by shrewd manipulation of the en­ the missiles. be for President Carter to authorize waivers vironmental laws. What would Goofy cost? No one knows. from current environmental and land-use The Pentagon has drawn up some estimates regulations if he finds such a move would And then there is a column by James based upon present and probable costs of be in the "para.mount national interest." Jackson Kilpatrick, questioning the sys­ construction. The latest guess is $33 b1llion They indicated that they would rather get tem devised by the Pentagon to house over a 10-year-period. The stentorian voice congressional approval for simplifying legis­ the MX missile. This colwnn raises .se­ of experience cries out: Double that esti­ lation. rious questions about the very concept mate! Annual costs of operation are placed According to these authorities, interested underlying MX deployment. at $400 m1llion. None of this 1bears much rela­ federal agencies are showing support for such tion to res.Ii ty. legislation-with the possible exception of There is a single thread that runs The Stevens amendment was tacked on to the Interior Department, which still objects through these articles, even if it is un­ the bill appropriating 670 million in the to some aspects of the simplifying approach. stated, and that is the absolute impor­ current fiscal year for planning and develop­ Proposed legislation ls being drafted by tance of thinking clearly about our de­ ing this pie-eyed proposition. The amend­ Air Force lawyers and may be introduced fense needs. We seem all too often to ment tells the President to continue develop­ fairly soon, officials said. be trapped in a ritual of action and re­ ing the MX, but to make no specific com­ mitments to the racetrack scheme. Better Among other things, defense officials would action when it comes to defense. From and cheaper alternatives may be discovered. like to dispense with a requirement that the late 1960's to the middle 1970's con­ costly environmental studies must be con­ gressional, media and antidefense group One suggested alternative is to load the ducted of all possible sites for the MX bases. missiles aboard STOL (short takeoff and In addition to the time involved, the officials pressure to cut our defense forces re­ landing) aircraft that could leap into action sulted in a drastically reduced defense said, a single environmental study sometimes like doodlebugs at th~ first hint of a Soviet can cost millions of dollars. capability. Now we are trying to quickly strike. Another proposal · is put the mis­ to What they would like to do is limit en­ undo the damage done over many years siles aboard submarines in the Great Lakes. vironmental studies to the valleys that are by the critics of national defense. This These vessels would ·be relatively inexpensive, logical possibilities as bases for the new mo­ hurried reaction, of course, results in or so it is said, and the crews could take bile missiles. ideas and systems not thoroughly under­ shore leave in Chicago, Duluth and Che­ boygan, thus supporting the local tradesmen. stood. AGING TITAN MISSILE FOUND A THREAT TO ITS There are better alternatives still. We could U.S. CREWS What we need is a clear, energetic and begin by rejecting the pending treaty on creative attitude among those responsi­ strategic arms limitation. The treaty has a (By Walter Pincus) ble for national defense, including the thousand flaws, but the worst of its fia.ws WASHINGTON.-The biggest missile in the Congress and the administration. We is this: It would effectively compel our gov­ U.S. arsenal has grown so old and so tricky to have to stop this action-reaction syn­ ernment to build and to deploy all the handle that it may be more of a threat to its drome. We have to think of ourselves launchers permitted under the treaty's Air Force crews than to the Soviets. Congress November 28, 19 79 EXTENSIONS OF REMARKS 33969 quietly has asked the Pentagon to look into the missiles operational and "on alert indefi­ that went on to play a crucial role in the its safety problems. nitely," according to an Air Force spokesman. ultimate outcome of the Revolutionary At the same time, the 17-year-old Titan II That is turning out to be quite a chal­ War.• ls so big that despite the fact that only 54 of lenge.e them remain, they constitute a third of the land-based nuclear destructive power the IT IS TIME FOR LOCAL ENERGY United States could launch against an TRIBUTE TO VALLEY FORGE enemy. INITIATIVES Thus, at a time when critics accuse the Carter adm.inistration of permitting the na­ HON. LAMAR GUDGER HON. GEORGE E. BROWN, JR. tion to fall behind the Soviet Union in de­ OF NORTH CAROLINA liverable destruction, decommissioning the OF CALIFORNIA Titan poses a political problem. IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES Interviews with White House omcials, the Wednesday, November 28, 1979 Pentagon and on Capitol Hill indicate that Wednesday, November 28, 1979 the giant liquid-fueled intercontinental bal­ e Mr. GUDGER. Mr. Speaker I rise to e Mr. BROWN of California. Mr. lastic missile is today less a dangerous call to the attention of my colleagues Speaker, as the Congress continues to symbol in the often irrational strategic arms that the House Committee on Interior deal with the energy problems of this race. and Insular A.ff airs recently reported country, it is important for us to remem­ When the Titan II became operational in favorably H.R. 4308 which would au­ 1962, these monster rockets-each with a ber all aspects of the energy situation, thorize funds for the protection, reha­ from the international to the local level. nine-megaton warhead, 750 times more bilitation, or preservation of property powerful tha.n the Hiroshima bomb-had a What is often forgotten as the headlines role to play in threatening destruction to in the vicinity of Valley Forge National dwell on international and national de­ large Soviet and Chinese cities. Park in Pennsylvania. velopments is the end uses of energy, and Today, accidents involving the missile's So often we do not appreciate the the initiatives local governments and toxic liquid fuel occur regularly in a weapon privileges we enjoy as Americans under groups can take to dramatically reduce system whose military mission seems all but our democratic system of government. the use of energy. to have faded away. I think it is important that we take A recent article by Neil Peirce, who is Last year, for example, 2 people were a moment to reflect upon the sut!erings killed and 27 hospitalized in Kansas and Ar­ noted for his analysis of local govern­ kansas in two accidents associated with the of the Continental Army during that ments, was devoted to this topic. I be­ highly toxic liquid propellants used in the winter at Valley Forge. Perhaps by do­ lieve every Member of this body would Titan !Is. ing this and remembering how our fore­ find this article of interest. I can only Twenty more were sent to hospitals in f athers endured and triumphed in times hope and urge that other local govern­ smaller incidents at Titan silos that hap­ of trouble, we can, as an American ments will take initiatives similar to pened as far back as 1974, according to an people, draw inspiration from this to those identified in this article, and that Air Force report recently sent to Congress. help us triumph in these very troubled the Congress will continue to support Why a.re these aging missiles kept oper­ times. ational some seven years after they origi­ such local initiatives. nally were scheduled for retirement? As you recall, General Washington At this time I wish to insert this article Interviews with key White House and Pen­ made camp at Valley Forge after being in the RECORD. tagon omcials indicate the primary reasons forced out of Philadelphia by the British The article follows: are political, rather than .military. forces under the command of Sir William [From the Los Angeles Times, Nov. 25, 1979] Phasing out of the Titan II was announced Howe. So while the British soldiers en­ publicly in early 1967, and at that time the joyed the comforts of accommodations ENERGY WAR WILL BE WON ON HOME FRONT Air Force said it would halt the :purchase in the city, the patriots made camp on (By Neal Peirce) of new missiles for test purposes. the lonely plain at Valley Forge. The nation's ability to conserve energy and "They became obsolete in 1971," a former That winter of 1777 was a time of ex­ thus weather the severe energy shortages that officer in the Air Force missile program said loom in the 1980s will be a key test of Amer­ recently. "They never were considered reli­ treme suffering and deprivation. The ican federalism. able," and "never in a meaningful way fit men suffered terribly from lack of ade­ From President Garter on down, there's into our force planning," he said. quate medical care, shelter, clothing, and growing consensus that the cumulative bene­ The United States had hoped the Titan ll food. Infectious diseases such as cholera fits from conservation-in weatherization, missile could be traded for the Soviet Union's and pneumonia swept throughout the better building design, in mass transit, car­ heavy missiles in arms-control negotiations, camp. The patriots were housed in wood­ pools, vanpools, in more compact land use­ a White House aide recently said. To date, en huts with mud chinking to keep out could be enormous. however, the Soviets have not agreed. the fearful winter winds. Clothing was But while Americans wait for some grand Nonetheless the Titan !Is were given new presidential gesture or congressional enact­ scarce and threadbare. Sentries were ment to set a course, it's actually in the na­ life, this time as a bargaining chip. They also seen standing on their hats to shield gained symbolic meaning more recently in tion's states, counties and cities, in individual the domestic arena.. their feet from the cold of the winter homes, workplaces and neighborhoods, that ground. The sick were robbed of their the conservation battle must be won. "They are a psychological blanket," one Washington may be able to help some, with Capitol Hill staff aide said. "They are the clothing because they were too weak to defend themselves. The dead were strip­ bigger tax breaks for weatherizatlon, for in­ only big missile we have around to compare stance. But states and localities have the with what the Soviets have." ped naked before burial. Food was hard real power: to regulate utilities' rates and The primary U.S. land-based missiles are to obtain. On many days, the men drew practices, to control zoning and land use, to the 1,000 Minuteman !Is and Ills. These mis­ no rations at all. On other days, they regulate highway patterns, to build and con­ siles, much smaller than the liquid-fueled had flour rations which they mixed with trol transit systems, to enact building codes, Titans, are considered safer because they water and cooked over the hot embers to dispose of waste, to decide on siting of use solid-fuel propellants. of their fire. The loss of human life was parks and schools and community centers. Militarily they are more effective because tremendous because of these overwhelm­ All these decisions have profound effect on of more accurate guidance systems and be­ the patterns of daily life, work and move­ cause, in the case of the 550 Minuteman Ills, ing circwnstances. ment, and thus on the amount of energy they carry three warheads instead of one. The mere fact that the Army survived Americans actually use. All 1,000 Minuteman missiles, however, the winter was a testament to the lead­ A stronger clarion call for conservation represent 820 megatons of nuclear destruc­ ership of General Washington and the from the nation's capital may help. But it is tive power. The 54 Titans accounts for 486 men themselves. However, not only did the states and localities that must mount the megatons. the Army survive, but it matured and requisite massive education job (attuned to Thus, should the Titans be dismantled, grew in a qualitative sense. As a result each area's particular climate) . It is these over-all mega.tonnage in the U.S. arsenal jurisdictions which must pass mandatory would drop by one-third. of enduring the daily hardship and mis­ ery as well as the rigorous, seemingly conservation laws and mount a grassroots At a time when critics of the administra­ mobilization effort comparable to the local­ tion and the strategic arms limitation treaty constant drills and maneuvers, the Con­ ities' role in the World War II mobilization (SALT 11) are pointing out the large ad­ tinental Army emerged from the winter effort. vantage the Soviets have in megatonnage, at Valley Forge as an organized, cohe­ Washington's familiar 1960s and 1970s re­ dropping the aging Titans could be politi­ sive, and disciplined unit of soldiers. This sponse to national domestic problems-ma­ cally disastrous. cadre of experienced officers and men jor funding programs, replete with an in­ Thus the Air Force has been told to keep was to form the nucleus of the Army finite array of rules and conditions-simply 33970 EXTENSIONS OF REMARKS November 28, 1979 won't work on the conservation front. Imag­ The second danger ls in bypassing the there are thousands of Cuban guns and gun­ ine the federal energy department, given its states. The states are constitutionally re­ men in their midst, and whose presence already stellar record of bureaucratic incom­ sponsible for their localities. They have vast there our former ambassador to the United petence, attempting to fund and regulate en­ regulatory powers and they expend vast Nations, Andrew Young, incredibly and ir­ ergy conservation programs in tens of thou­ a.mounts for local ca.pita.I and operating ex­ responsibly called a "sta.b111zing in:tluence." sands of localities. One shudders at the very penses. If federal energy a.id :flowed through Castro's minions are not acting on their prospect. the states-perhaps with a requirement own. Cuba. is a. craven puppet of Russia, so Given the dominance of the federal in­ that almost all of it be passed through to if her efforts are successful, it would mean come tax as a revenue raiser, some forms of localities-state governments could devise giving the Russians wha.t amounts to two national assistance may be necessary to help incentives for cities and counties to act. The representatives on the Security Council. You local conservation plans along. But the help states could involve suburbs, where some of don't have to be e. foreign policy expert to should be light, the conditions virtually the greatest energy-saving potential lies. figure that one out. nonexistent. Overregulation can kill local And by coordinating their own actions with Actually, the only imperialistic nation on initiative and imagination. those of their localities, they could multiply the face of the globe today ls Russia. None ThE re a.re ample reasons for states and lo­ the benefit several times over for each dollar of the big European countries which used calitiE s to develop thorough conservation invested. to be colonial powers before World War 2 plans whether they get any outside help or Some say federalism is a qua.int, out­ dominate others. Only Russia fits the defini­ not. 1 very dollar a city or its citizens and moded doctrine, irrelevant for times of tion of exerting "indirect control over the businesses "exports" to utilities or oil com­ stress. But in this vast nation, quite the op­ political or economic life of other areas." panies for energy reduces the money avail­ posite may be true. Federalism respects real Russia's, and now Cuba's, use of the shop­ able for economic activity and job creation power, it can tailor policies for a thousand worn reference to the United States as an within. and one special local circumstances. By 1mper1al1st1c nation ls a. glaring example of For example, Portland, Ore., which this being locally democratic, it can evince re­ the Big Lie technique developed by the.Nazis. summer adopted what is probably the na­ sponsiveness and creativity and effective­ After the Spanish-American War we tion's most comprehensive local energy plan, ness. It would be hard to conceive a. more promptly gave Cuba its independence. estimates that by 1995 it can be saving $162 appropriate system to attack the energy The Philippine Islands were under Ameri­ million annually by cutting back citywide conservation challenge of the '805.e can control in a sort of commonwealth energy use by 30 % . status, with their own government, but we The Portland plan illustrates both the soon turned them loose. marketing and "teeth" required in a. truly WHO'S AN IMPERIALIST? Not interested in direct or indirect acquisi­ significant local plan. After 1983, any Port­ tions, we liberated or offered to liberate all land homeowner who hasn't weatherized his the islands we used in the Pacific during or her house to energy "cost etnciency"-a.11 HON. ROB'ERT J. LAGOMARSINO World War 2. improvements, from storm windows to in­ OF CALIFORNIA The Carter administration succeeded in sulation, that will pay themselves back in ending America's ownership of the Panama reduced heating and cooling costs within 10 IN THE HOUSE OF REPRESENTATIVES Canal. years--simply wont' be allowed to resell the Wednesday, November 28, 1979 On any given day this month or next, the house. Apartment-house owners and busi­ United States would be willing to grant nesses will face similarly stiff requirements. e Mr. LAGOMARSINO. Mr. Speaker, Puerto Rico its independence. The reason To sweeten the pill, Portland plans a door­ following is an editorial by William this will not happen is tha.t 94 per cent of to-door marketing campaign to explain the Randolph Hearst, Jr. regarding the the Puerto Ricans want to remain where new rules, plus "one-stop" weatherlzatlon fallacious epithet "imperialist" which is they a.re in an American protectorate with centers to help homeowners arrange for en­ often used to describe the United States. the advantage of American citizenship. ergy audits, get financing, arrange for con­ As Mr. Hearst states, the very nations Only in a. communist jargon dictionary tractors and explain tax credits. Poorer fa.m­ which use the term most. regularly are can our record be defined as that of an im­ mes may receive subsidized loans, financed perialistic nation. Ours is a consistent record through either federal grants or a local those to whom it best applies. of e country that for 200 years has cherished bond issue to create a revolving loan pool. The article follows: freedom, not only for ourselves but for others The city's promise: For combined monthly WHO'S AN IMPERIALIST? a.s well. It is the American tradition we .a.re energy bills and weatheriza.tlon loan pay­ (By Wllliam Randolph Hearst, Jr.) proud to teach to our children. ments, no one will have to pay more (in NEW Yoax.--One of the most used, and By contrast, the Soviet Union is a. colonial constant dollars) than his or her energy blll most a.bused, words in the language of in­ . nation of the most imperialistic sort. alone cost before. ternational controversy these days is "im­ The communist cancer has been spreading. Portland's plan goes beyond weatheriza­ perialism." It has been felt in Afghanistan and So­ tlon. There is a. major land-use component, It crops up in almost every debate between malia, Ethiopia. and Angola. By way of Cuba encouraging more dense housing (multi­ leaders of the enslaved Ea.stern World and it has found its way to Nicaragua, where family and attached units) and concen­ the free Western World. The la.test use and the Sandinistas never could have ta.ken over trated developments of housing, reta111ng and conspicuous abuse of the word happened on the country without the help of a Cuban­ omces, all accessible by mass transit. The the fioor of that great debating society on trained cadre, and probably to El Salvador goal ls to save energy by reducing the num­ where rebels are starting another revolution. ber and length of trips. the banks of New York's Ea.st River, the so­ ca.lled "United Nations." Imperialist is a. dirty word a.11 right, but New Portland did receive a federal Cuba, a. self-sty•led "non-aligned nation," grant to conduct a detailed city energy it hardly fits a nation like the United States used "imperialist" as an epithet in an at­ which, with all our faults, is ready to give audit. But the crucial process was all local. tempt to slander the United States. Castro's A broadly representative energy steering milllons of dollars to help starving and dying country has been wrangling with Colombia Cambodians, and would do so 1f the Soviet commlttee--people from business, labor, over rights to a pew in the Security Council ut111ties, neighborhoods, envlronmenta.llsts, Union were not standing in the way. bankers, worked on the plan for eight of the United Nations, and not for exactly To talk of an imperialist nation is to sug­ months, weeded out politically impractical altruistic reasons. Cuba. wants to represent guest a warlike nation, which the United elements, and created a. master plan with the Third World at the U.N., and its mouth­ States certainly is not. The Camp David ac­ impressive community credib111ty. pieces are not hesitant to give the reason cords are a classic and truly historic example why. of the peaceful instincts of our land. Portland-style plans could provide a tran­ They want to put an end to what they sition to a. new energy age with emctency call the domination of the United Nations In my opinion the noblest achievement and grace, without severe social discord. The by the United States. And the United States, of the Carter administration's foreign policy alternative: general procrastination until according to them is "the most imperialist were those accords, and the president's dire energy shortages occur and Washing­ country in the world." ab111ty to get Israel's Mena.chem Begin and ton seeks emergency power to impose dra­ Egypt's Anwar Sadat to sup and sign to­ conian measures. Let's just take a. look at the source and gether. substance of the slander. Several big national bills to aid local en­ The Soviet Union, whose Cuban puppets ergy efforts a.re now pending. One written Webster's Seventh New Collegiate Dic­ call the United States imperialist, has op­ by the cities' lobby and introduced by Sen. tionary defines imperialism as follows. It is posed those accords and the beginning of a Paul Tsongas (D-Mass.) would hand out "the policy, practice or advocacy of extend­ Middle Ea.st peace all a.long. $5 billion in direct federal grants to locali­ ing the power and dominion of a. nation, es­ ties for everything from local energy plan­ pecially by direct territorial acquisitions or Russia's word has never been its bond, as ning to actual capital for district heating by gaining indirect control over the political President Kennedy found out when told plants. or economic life of other areas." there were no Russian missiles on Cuba.. This There are dangers to that approach. First, Does that description apply to the United is something for our Congress to ponder a.s with so much money pending, localities States of America. or CUba? Ask Nicaraguans it debates the SALT II treaty. might put off their own initiatives. Federal W'ho know of the presence of Cuban-trained You can't trust them when they say paternalism could undercut the strong local soldiers among those W'ho have taken over "nyet," because they could mean "da." consensus needed for energy conservation. their country. Or ask Africans who know And "da." could mean "nyet," yet.e November 2B, 1979 EXTENSIONS OF REMARKS 33971 F'ORT SMITH, ARK.: AN INDUSTRIAL estimated 95,000 new jobs in the process, work in Fort Smith, Sugg figured. He figured SUCCESS STORY accord·ing to Chamber of Commerce surveys about 33,110 Oklahomans are earning their annually of local industries. living in Arkansas there. During the sa.me years 681 industrial ex­ Fort Smith, not noted primarily as a tour­ HON. JOHN P. HAMMERSCHMIDT pansions have required about $236 million in ist city, managed to attract about 100,000 capital investments, crea.ting more than OF ARKANSAS tourists last year, Sugg and Latture pointed 17,000 new Jobs, the same source indicated. out. The prime attraction is the Fort Smith IN THE HOUSE OF REPRESENTATIVES Yet, the Fort Smith Standard Metropoli­ National Historic Site and its museum, gal­ Wednesday, November 28, 1979 tan Statistical Area-which includes Sebas­ lows and courtroom used by the legendary tian and Crawford counties plus two adjoin­ Judge Isaac C. Parker a century ago. The e Mr. HAMMERSCHMIDT. Mr. ing Oklahoma. counties--stlll had a. 7.7 per­ park is being enlarged from the present Speaker, over the last 24 years, the city cent unemployment rate in September. Na­ 17 acres to 75 acres and about $6.5 million in of Fort Smith, Ark., has amassed quite tional economic conditions are reflected at federal funds are going into the redevelop­ an economic development success story. Fort Smith. ment of the surrounding area, Sugg said. "We're tied pretty much to housing," said iBelle Grove Historical District contains New industrial installations and expan­ Latture about the city wdth 27 furniture numerous restorations of 19th century homes sions since 1957 have created approxi­ plants in addition to large air conditioning, and some light commercial developments in­ mately 112,000 new jobs, which have heating and home app'liance manufacturers. side historic surroundings. Wide Garrison helped cushion the area from the e1f ects "We're interested in companies paying good Avenue is seeing sizable downtown redevel­ of economic downturns felt more keenly wages and which are not too seasonal. ... We opment investments from both the public in other parts of the Nation. don't want to stink up our air, foul up our and private sector. ·Huge Central City Mall water, or use all our (natural) gas. We need is one of the largest in the Southwest and Perhaps my colleagues will recall an a lot more small payrolls." article in the CONGRESSIONAL RECORD of the smaller and older Phoenix Village Shop­ "Small?" Some of Fort Smith's industries ping Center continues to expand. July 27, in which it was· noted that the aren't--Whirlpool Corp. employs about 4,000 Fort Smith earlier this year lost airline Bureau of the Census has listed the Fort workers at its plant which covers 42 acres service by Braniff International. Skywa.ys 1s Smith Standard Metropolitan Statistical under one roof. Rheem has another 2,000 curtailing flights in mid-November and plans Arear-two Arkansas counties a.nd two workers; Baldor Electric works 1,500 and · to eliminate service in January. Frontier con­ Oklahoma counties---as the ninth fast­ Riverside Furniture employs 1,200. tinues its air service to the city. Gerber Products Co., which employs 500 Missouri Pacific Lines, Frisco and Kansas est growing SMSA during the 1970-75 people who turn out baby foods, influences period. City Southern railroads serve the city and its farming over a. wide area., La.tture noted, say­ industrial areas. KCS has a. 2,000-acre indus­ Many factors contribute to Fort ing the company buys vegetables from farm­ trial park. Smith's health and growing economy: ers in East Arkansas, Oklahoma., Texas and Arkansas River navigation at Fort Smith is Natural resources such as gas, transpor­ other states. rounding out its first decade. Port Manager tation facilities, reliable labor force, the At a time when industrial natural gas con­ N. M. "Buck" Shell said recently the facmty intangibles that make up a good quality tracts aren't what many industrial developers handles cargo for customers as near as Whirl­ wish they were, the industrial seekers at Fort pool and Rheem and as distant as Oklaihoma of life, a.nd active recruitment of indus­ Smith haven't suffered. try led by Chamber of Commerce Execu­ City, Dallas-Fort Worth and New Mexico. "Five years ago, we had a. 17-year reserve of About 30 percent of the cargo inbound even­ tive Paul Latture. natural gas and now we have a. 25-yea.r re­ tually goes out of state overland from Fort Arkansas' right to work law was also serve," said Richard B. Sugg, assistant man­ Smith after making its way upstream by mentioned as a major factor in that ager of the Fort Smith Chamber of Com­ barge, Shell said. growth, and is again cited in a more re­ merce, who works closely with La.tture on Actually located on the Poteau River .a cent new story, which is included for my industrial development matters. short distance from the Arkansas River "We can supply any one customer up to 10 channel, the port recently completed a. $437,- colleagues attention this afternoon. million cubic feet (of gas) a. day, and right "Fort Smith: An Industrial Success 000 turning basin which required removal of now there are 30 to 40 active drilling rigs a.bout 192,000 cubic yards of dirt. Story," written by Randy Tardy, busi­ opera.ting in this area.." Arkansas Oklahoma Latture's industrial development record is ness editor for the Arkansas Democrat Gas Corp. supplies natural gas to the area. well known. He praises the former Arkansas newspaper in Little Rock, follows: Electricity is provided by Oklahoma. Gas and Industrial Development Commission and its FoRT SMITH: AN INDUSTRIAL SUCCESS STORY Electric Co. successor agency, the Arkansas Economic Sugg illustrated the area's natural gas sit­ Development Department, for industrial (By Randy Tardy) uation with a recent example saying, "When FoRT SMITH.-Leadership, labor, land, liv­ prospect help over the yea.rs. He speaks openly Planters Peanuts wanted to pour concrete for a.bout community leadership and involve­ ab111ty-and Paul Latture, are some of the their plant's parking lot they had to ca.p two basic ingredients which have gone into a ment, cooperation of local bankers and other producing gas wells to do so." He said the financial people. successful industrial development story wells weren't sizable producers, but were pro­ called Fort Smith. ducers, nevertheless. The economy is now built on a. firm foun­ Add a plentiful, repeat--plentiful-supply "We've got everything in the world you've dation where once it suffered from military of natural gas, stir the ingredients together got in Chicago or wherever, except we're decisions reflected in the closing and open­ for 25 years, and the results aren't hard to not as big," La.tture said he tells visiting in­ ing of nearby Fort Chaffee with little or no find in this western Arkansas city on the dustrial prospects from the Midwest, East advance notice. The huge military complex, Oklahoma border. and other parts of the country. Liva.billty, he now deactivated, last served a few years ago as Latture, a Beebe native now a 24-year added, is evidenced in the local arts and cul­ the first haven in the U.S. for Vietnamese Chamber of Commerce veteran at Fort Smith, tural endeavors, nearby mountains and refugees. Many have remained at Fort Smith remembers taking a "$2,000 cut in pay" when streams, educational facilities, beautiful res­ and settled into the community mainstream, he left a staff position with the Tulsa Cham­ idential areas and a. regional hospital and including industrial jobs. ber of Commerce in 1955 and took on a man­ medical center complex which has attracted "You've got to get down on a first-hand ager's job because he thought Fort Smith outstanding specialists in many different basis with your prospects where they've got was "a sleeping giant." fields of medicine. confidence in you," Latture said of his in­ Now, after nearly a quarter-century on the "Every bit of available (industrial and dustrial philosophy, "you've got to be honest. job, his industrial development efforts are commercial) land is in my files," Latture said If you've got labor problems, tell 'em, if the reflected in many shiny ground-breaking of the chamber's industrial site a.va.lla.bilities, property site floods, tell 'em. shovels hanging from his office walls. adding that "(Realtors) still get their fee" "Be prepared--soil borings, contour maps The more than 40 shovels bear company if and when a. prospect wants the particular of sites, cost figures-the whole works. Three names and ground-breaking dates-big site. bankers, comprise my industrial committee. names like Whirlpool, Rheem, Baldor, Gerber, La.tture and Sugg both pointed out that Prospects know we're not gonna. lie in front Inland Container, Hoerner Waldorf, Arkan­ industrial development, much in evidence of a. banker. Prospects also want to visit key sas Best Corp., Mead Papers, Ball Corp., Gen­ on the Arkansas side, does not extend across people at existing industries. I'll take them, eral Electric, Riverside Furniture, Planters into Oklahoma, at least at Fort Smith. He let them talk to who they want to, I'll sit Peanuts and about three dozen others. said land in Oklahoma brings a.bout $3,000 to out in the lobby. Word gets around a.bout "We're getting ready to hang up Hiram $4,000 an acre compared to a.bout $20,000 an you. Walker & Sons, Inc., shovel pretty soon," Lat­ acre on the Arkansas side at Fort Smith. "In the 1974 recession, we never knew any­ ture said, noting that the well known distil­ Arkansas has a. Right-to-Work law. Okla­ thing went on." lery is starting to build a. $37 million plant on homa. doesn't. Sugg recently described the On a. single day in 1974, Ball Plastics and a. 43-acre site in South Fort Smith and will state line as "the Right-to-Work line" to a Transkrit Corp. each broke ground on plants, close its Peoria., Ill., headquarters distillery. group of visiting Oklahoma City Chamber and ribbon-cutting ceremonies took place at In all, 170 companies at Fort Smith have of Commerce members visiting the area. And Planters Peanuts and Gould Battery. Tota.I invested more than. $100 million in new about 43 percent of the 77,000 people working Investment--$40 million at Fort Smith, plants between 1967 and 1978 and created an in Fort Smith daily live in Oklahoma. and Ark .• 33972 EXTENSIONS OF REMARKS November 28, 1979 THE UNIFORM PRODUCT LIABILITY interested" in undertaking such a proj­ burden of producing a product with an alter­ ACT ect. Hence, it would appear that the de­ native design that would have prevented sired uniformity might, as a practical those harms, and the adverse effect of that alternative design on the usefulness of the 1 matter, be achieved only through Con­ HON. JOHN J. LaFALCE gressional action. (If each State would product. The Act also outlines some highly OF NEW YORK relevant evidence that the court and the trier attempt to adopt the uniform liability of fact can use in making this evaluation. IN THE HOUSE OF REPRESENTATIVES law, undoubtedly 50 different laws would 3. Duty to Warn.-With respect to prod­ Wednesday, November 28, 1979 result. For example, Connecticut has ucts that are allegedly defective because the adopted three-fourths of the draft Uni­ product seller failed to provide an adequate • Mr. LAFALCE. Mr. Speaker, I am form Product Liability Act.) warning or instruction with its product, the pleased to introduce today the Uniform Accordingly, I am introducing this bill Act also adopts a fa.ult standard. Again, a Product Liability Act, crafted by Prof. for congressional consideration as a formula is utilized. The claimant must prove Victor Schwartz of the Commerce De­ vehicle to preempt existing State laws that at the time of manufacture, the likeli­ partment's Task Force on Product Lia­ concerning product liability. However, hood that the product would cause the bility. this bill for all practical purpo,ses incor­ claimants harm or similar harms and the The act is prompted by the exorbitant seriousness of those harms rendered the porates verbatim the text of the Uniform manufacturer's instructions or warnings in­ product liability premiums being charged Product Liability Act as drafted by the adequate, and that the manufacturer should the business community, especially small Department of Commerce. While a brief and could have provided the instructions or businesses. Both my small business sub­ description of the act follows my re­ warnings that claimant alleges would have committee and the Interagency Task marks, an extended discussion of the been adequate. The Act then outlines some Force identified uncertainty in the prod­ various provisions of this act might be highly probative evidence that the court and uct liability tort litigation system as one found at 44 Federal Register 62714 rker Compensation sta.tute. ance standard, is admissible but is given no until after tha.t time. On the other hand, the Act preserves the special evidentiary weight. 3. Statute of Limitations.-The statute of employer's Worker Compensation shield and If a product seller proves that it was not limitations under the Act is two yea.rs from does not permit a product seller to bring a within practical technological feasibility for the time the claimant discovered or in the contribution claim against him. The .wp­ him to make the product safer with respect exercise of due diligence should have dis­ proach substantia.Uy reduces current Utiga­ to design and warnings or instructions at the covered the ha.rm and its ca.use (•section tion costs rwithout diminishing a.n eIIl!Ployee's time of manufacture so as to have prevented 110). right to recover in a product UabHity claim claimant's harm, it will, in general, not be I. COMPARATIVE RESPONSIBILITY AND APPOR­ (*Section 114). liable for defect in design or failure to warn TIONMENT OF DAMAGES M. SANCTIONS AGAINST THE BRINGING OF FRIVO­ or instruct. "Practical technological feasibil­ All cla.ims under the Act a.re governed by LOUS CLAIMS AND DEFENSES ity" means the technical, mechanical, and the principle of comparative responstbility A.my party to a product liability claim m,a.y scientific knowledge relating to product In determining the percenta.ges of responsi­ seek reimbursement for reasonable attorneys' safety that was reasonably feasible for use, bil1ty, both the nature of the conduct of the fees 8JDJd. other costs that would not have in light of economic practicality, at the person or entity responsible and the exten.t been incurred but for the !-act tha.t the op­ time of manufacture. of the proximate causal relation between posing party pursued a claim or defense that There are important exceptions to this rule. the conduct and the damages a.re to be con­ was frivolous. Under the Act, a claim oc de­ The product seller may be liable if It acted sidered by the trier of fa.ct. fense ls considered frivolous if the court de­ unreasonably in selling the product at all; Damages a.re to be apportioned severally termines that it was !Without any reasonable violated an express warranty; or failed to and not jointly when a party is responsible legal or t:fa.ctua.l 1basis ( •Section 1.lr5) . meet a. post-manufacture duty to warn about for a distinct harm or when there is some N. ARBITRATION the product (•section 107). other reasonable basis for apportioning that In gener;aJ, when the a.mount in dispute is F. RELEVANCE OF LEGISLATIVE OR ADMINISTRATIVE party's responsibility for the ha.rm. Other­ less than $50,000, any party may by motion REGULATORY STANDARDS AND MANDATORY GOV­ wise, a judgment ls entered against ea.ch institute a pre-trial Mlbitration proceedlng. ERNMENT CONTRACT SPECIFICATION party liable on the basis of the common law The Aot provides that a party dissatisfied rules of joint and several liability (•section with the e.rt>itra.tion results ma.y denui.nd a If the injury-causing aspect of a product 111). was in compliance with a legislative enact­ full trial. However, the results of the arbi­ ment or administrative regulation relating J. CONDUCT AFFECTING COMPARATIVE tration will be admitted in evidence, and if to design or performance, it shall not be RESPONSIBIL1TY the party who demanded the trial fails to deemed defective unless the claimant proves 1. Failure to Discover a Defective Con­ obtain a judgment that is more f;a.vora'ble that a reasonably prudent product seller dition.-A claimant is not required to ha.ve than one rendered in the a.rbitratdon pro­ inspected the product for a defective con­ ceeding, it will have to pay the cost Of the would and could have taken additional pre­ a.rbitN.tion (*Section 116). cautions. Conversely, if the injury-ca.using dition. However, 1f he is injured by a product aspect of the product was not in compliance with a defective condition that would be ap­ O. EXPERT TESTIMONY with such a standard, the product shall be parent without inspection, his damages are The Act gives the court power to make subject to reduction. deemed defective unless the product seller use of court-appointed experts. It also pro­ proves that its failure to comply was a rea­ 2. Use of Product With a Known Defective vides, in appropriate cases, for a "pre­ sonably prudent course of conduct under Condition.-When a. cl&imant knew a.bout a trial" expert screening procedure. The pur- product's defective condition and volunt.ar­ the circumstances. pose of the procedure is to prevent un­ ily used it, his dam.ages shall be subject to qualified experts from testifying at trial Compliance with mandatory government reduction to the extent that the trier of tact (Section 117) . CXXV--2136-Pa.rt 26 33974 EXTENSIONS OF REMARKS November 28, 1979

P. NON-PECUNIARY DAMAGES moment to extend any further credit or as­ a specific or broader context. If we start to­ The Act reminds the court of its in­ sistance. Much of the basic information that day with the Chrysler Corporation, who will herent power. to review pain and suffer­ Congress should have before passing judg­ we see tomorrow? Recent press reports indi­ ing and other non-pecuniary damage ment either is not available at this time cate that Conrail, the government-subsidized awards for excessiveness. In an optional and will not be available for several months private railroad which arose from the rem­ provision, non-pecuniary damages are lim­ or is extremely vague. In connection with nants of the bankrupt Penn Central and six ited to $25,000 or twice the amount of the current problem, the Committee has other alling railroads, is on the verge of pecuniary damages (whichever is less) . failed to study the long-term impact on bankruptcy after more than $1 billion of unless the claimant has suffered serious, Federal loan guarantees upon credit alloca­ accumulated losses over the past three years. permanent, or prolonged harm (•Section tion and inflation. The impact of govern­ Ford Motor Company, which steadily has 118) . ment regulations of the automobile indus­ been losing its market share in the last few try, together with a study of the costs and years, privately has forecast a loss of more Q . THE COLLATERAL SOURCE RULE benefits of those regulations, have gone un­ The Act provides that product liability than $1 billion in 1979 and about as much noticed in the present situation. The alter­ next year in its North American automotive awards shall be reduced by any compensa­ native of a Chapter 11 reorganization of operations. Before we legislate blindly, we tion received from a "public source." The Chrysler under the new bankruptcy code is must be aware that these and other com­ term "public source" denotes a fund more one that bas not received adequate study. panies may be supplicants for the Federal than half of which is derived from general For these reasons the Chrysler Corporation dollar in the future. tax revenues (*Section 119). Loan Guarantee Act of 1979 should not be THE FEDERAL ASSISTANCE TO CHRYSLER--THE R. PUNITIVE DAMAGES approved. RISK IS TOO HIGH The Act provides that punitive damages Finally, we would like to emphasize that may only be awarded if the claimant shows our opposition to granting any Federal as­ One of our great objections to the issuance by clear and convincing evidence that the sistance to the Chrysler Corporation is not of Federal loan guarantees to Chrysler is the harm resulted from the product seller's reck­ a partisan issue. Indeed, a review of the risk associated with this plan. There is a high less d,isregard for the safety of product Committee vote to report the legislation probabllity that Chrysler will not survive users. The Act also provides that while the shows that five majority members voted even after it receives Federal assistance. In jury may determine whether punitive dam­ against the bill, while three minority mem­ fact when pressed on this point in his ap­ ages should be awarded, the court must bers voted in favor of the Administration's pearance before the Committee, Secretary of make the determination as to the amount proposal. Many prominent republicans, such the Treasury G. William Miller saw a reason­ of those damages. In making this deter­ as former President Gerald Ford and Wil­ able probability for the success of this plan mination, the court is instructed to con­ liam Brock, Chairman of the Republican but admitted that " ... I don't think that sider the total effect of other punishment National Committee, have been in touch anyone can give a guarantee (that the plan imposed or likely to be imposed on the with many minority members in support of will work] because none of us can predict product seller as well as other relevant fac­ Chrysler's position. So the record should what will happen." tors (•section 120) ·• be clear that while Chrysler may have polit­ The uncertainty associated with the bail­ ical problems in selling its proposal, these out of Chrysler rests on the several assump­ problems are by no means partisan ones. tions which are incorporated into the rescue plan. If any of these assumptions prove to DISSENTING VIEWS ON THE A DANGEROUS PRECEDENT 1 be even slightly otr, then the ·chances of the CHRYSLER CORPORATION LOAN Whatever action the House of Representa­ corporation :remaining solvent even with GUARANTEE ACT OF 1979, H.R. tives takes regarding Chrysler Corporation, Federal assistance are seriously jeopardized. 5860 there should be no mistake about the prece­ One of the key assumptions in the Chrys­ dent that the House will be creating. Clearly, ler plan ls that Chrysler will increase itll we are establishing precedents of both a share of the auto market by two per cent by HON. J. WILLIAM STANTON procedural and substantive nature. 1984. Unfortunately, the prospects for this OF OHIO Procedurally, if Federal assistance to increase are not bright. During bis appear­ Chrysler ls granted by the Congress it will IN THE HOUSE OF REPRESENTATIVES ance before the Committee, Alan Greenspan, be t.he first time that specific loan guarantees a former Chairman of the Council of Eco­ Wednesday, November 28, 1979 are awarded prior to the presentation of a nomic Advisors called such an increase in STANTON. Mr. Speaker, soon complete and financially sound economic market share "rare." Moreover, just last week •Mr. plan for the borrower's survival. In the case when he appeared before the Senate Bank­ the Congress will consider legislation of both the Lockheed Corporation and New ing Committee, Lee Iacocca, Chairman of that would grant Federal loan guaran­ York City, such plans were presented in a Chrysler, admitted that company has already tees to aid the Chrysler Corp. Before this completed form before Federal assistance reduced its forecast of the total U.S. car issue is debated on the floor of the House was forthcoming. In the case of the Chrysler market in 1980 to about 9.3 million units, of Representatives, I urge my colleagues Corporation, however, under Sec. 3 of H.R. down from the 10.5 million units it had to view this excerpt from the dissenting 5860, only "satisfactory" operating and fi­ relied on earlier. If this trend continues into views which are part of the committee nancing plans are required to be submitted 1981 he stated that Chrysler's cash flow to the Secretary of the Treasury prior to his projection and profit-improvement plans report on H.R. 5860. guaranteeing any loans, and even these plans probably would collapse and the company The excerpt follows: will not be available until some time next would be forced out of business. Thus, a DISSSENTING VIEWS year. Congress should have something more basic assumption on which this rescue plan Introduction than just a "satisfactory" financing plan be­ is predicated already has been questioned by No one likes to see a company go out of fore it reaches a decision on this proposal. Mr. Iacocca himself. business, even when there may be legitimate, Substantively, there is another precedent The shaky nature of the market projec­ if unfortunate, reasons for its demise. A which should be acknowledged. Proponents tions or Chrysler's market penetration as­ business failure greatly impacts the lives of of this legislation point to the examples of sumption and its implications for the people directly and indirectly associated Lockheed and New York City as precedents Chrysler legislation were revealed through with the enterprise. There is no question for deviating from the free enterprise sys­ repeated questioning by Congressman Green. that the failure of a corporation the size of tem in certain extreme cases. Yet, legitimate Mr. Green asked the Treasury Departm.ent Chrysler will affect the livelihood of thou­ national defense issues were at stake in the to project the future of the Chrysler Corpo­ sands of people. Nonetheless, we have con­ Lockheed guarantee while financing to New ration based on all the Corporation's as­ sidered the personal and social costs of a York City consisted of loan guarantees to sumptions except the penetration assump­ Chrysler collapse and have concluded that another governmental entity. More impor­ tion. Instead of assuming a two percent this loan guarantee program is not in the tantly, in the case of New York City, general increase, he asked the Treasury Department best interests of the nation as a whole. tax revenues provide some guarantee of to assume that the market penetration The factors that weigh against Federal funds for loan repayment. With Chrysler, would remain stable at approximately 10.2 loan guarantees to aid Chrysler are many. there is no guarantee of income to be avail­ percent. Treasury's computation then indi­ Consideration should be given to the prec­ able for debt service. The precedent that is cated that the company would fall short of edent that is being established as well as being established with the Chrysler Corpora­ its cash needs by approximately $750,000 the criteria which either are or are not being tion is the bailout of a company that has even with the proposed Federal assistance used to judge the :financial conditions of failed in the consumer market. With con­ of $1 .5 billion. falling corporations. The economic risk as­ sumers having made their choice, ls it our A second key assumption in the plan as sociated with this particular bill is too role to reverse their decisions by an alloca­ adopted by the Committee is that the na­ great, particularly when many of the eco­ tion of credit to a firm which may yet fail tion's economy will not suffer any unex­ nomic assumptions that underpin the pro­ to compete in the marketplace? pected shocks during the next few years. posal are under serious challenge today. Where do we draw the line? What criteria Since automDblles are a consumer good, Many of Chrysler's constituents who have do we use to determine who gets what, when, sales are naturally tied to the health of an economic stake in the survival of the how much and why, for what reasons? These the economy. A drop in consumer confidence, corporation have been unwilling as of this questions have not been answered in either a deeper recession or another oil embargo November 28, 1979 EXTENSIONS OF REMARKS 33975 obviously would result in a lowering of car "The point I tried to make on Saturday was First, there a.re really valid questions of sales. If car sales for the last month are quite simple: the financial concession ma.de whether the Federal government should move any indication, we already are beginning to by the UAW in the contract it signed with in to "rescue" a private corporation from see this occur. Yet, how can our Committee Chrysler a.re not, in my view, adequate to failure regardless of the human and social or the Congress insure the. t we will not meet the requirements of the legislation the costs we know will occur. There has been experience any unexpected economic shocks Administration supports," stated Kahn in widespread discussion on the "worst case" during the next few years? In fact we are his letter of November 12, 1979; "I firmly be­ situation arising from a failure but your presently embroiled in a situation with Iran lieve the union must be more forthcoming Committee has not considered the a.meli­ which may have dire consequences on our in its financial commitment to assist the orating effects of unemployment benefits and economy. Thus, if the nation were to experi­ Corporation in achieving financial solvency." the possib1llties of continuing operations ence some unexpected economic setback, the Two questions must be raised. First, a.re under bankruptcy or any of the less severe $1.5 b1llion in Federal guarantees would be Chrysler's constituents willing or able to consequences. totally worthless. make the sacrifice that is required to save These a.re just two of the underlying as­ the corporation? An examination of commit­ Second, we are disturbed by the failure to sumptions in the plan a.s passed by the ments made to date leads the observer to a adequately consider alternatives to this plan. Committee. Others existed and many are negative conclusion. Banks, suppliers and The conventional wisdom is that we have subject to similar challenge. Unfortunately, Chrysler's own workers--collectively the ma­ our choice of this plan or bankruptcy. We are time did not permit any objective analysis jor pa.rt of Chrysler's constituenr,y-at this not so sure that is correct. For example, of these assumptions. Each member needs point appear to be unwilling to go the dis­ would not guarantees of 75 to 80 % of the to ask himself, therefore, if the risk asso­ tance to put together the $1.5 billion financ­ loan amount, leaving the lender with some ciated with this plan ls one he wishes to ing package that Chrysler must have in place risk and therefore a continuing interest in impose on the nation. Needless to say, it is before any Federal loan guarantee is forth­ Chrysler's performance, be preferable to the a risk which we have decided not to accept. coming. If this is so, then no Federal assist­ 100% guarantee proposed here? We know ance will flow to the Chrysler Corporation lenders have specialists with expertise that THE ROLE OF CHRYSLER'S CONSTITUENTS: and this exercise then becomes moot. far exceeds anything Treasury supervisors CONCESSIONS FROM WHOM? The second, and more important, question can expect to develop on short notice. Har­ The proposed bill correctly requires that is: is the Congress being asked to approve a nessing this existing expertise to monitor "persons with an existing economic stake in $1.5 billion Federal assistance progra.m­ Chrysler's performance seems like a good the health of the Corporation" make specific which ultimately must be underwritten by idea which would enable us to minimize gov­ financial commitments or concessions to aid the U.S. taxpayer-to a private corporation ernment intervention in the corporation's Chrysler. Such persons are defined in the so that that corporation can afford to pay an activities but to our knowledge no thought legisLation as "banks, financial institutions, additional $1.3 billion to its workers? The has been given to this approach. . . and other creditors, suppliers, dealers, stock­ figures are surprisingly similar. One must Third, the assumptions underlying the holders, labor unions, employees, manage­ wonder what Chrysler's financial situation presumption that $3 b1llion of assistance will ment, state, local and other governments, would be today if the union had agreed to a revitalize the Chrysler Corporation a.re seri­ and others directly deriving benefit from wage freeze in the next few years, a. prece­ production, distribution and sale of products ously flawed. Current developments with dent which Ea.stern Air Lines and The Wash­ respect to Iran, the international oil markets, of the Corporation." ington Star successfully implemented in the the national economy and the automobile To date, howe~er, none of these persons recent past. It seems incredulous that a labor with an economic stake in the future of market in particular all mitigate against the contra.ct calling for this substantial wage achievement of goals assumed to be achieve­ Chrysler-with the exception of an unspec­ increase would be concluded by the manage­ ified a.mount from the State of Michigan and able in the underlying rationale for this ment and the union when the company is blll... $200 million in deferred payments to the on the verge of bankruptcy. Certainly, Con­ UAW that a.re to be recaptured at the end of gress cannot approve such a program in good Finally, one cannot help but wonder how the three year contra.ct--has ocntributed any conscience when the economic realities of Congress can be expected to approve this specific aid. "We don't know how much is the situation a.re so apparent.... legislation at this time. As it stands now the required or will be required from each party," proposal is open-ended with no assurances Deputy Secretary of the Treasury Robert GROWING CONCERNS OVER FEDERAL LOAN to protect the taxpayer. Until such time as · Carswell testified at the full Committee hear­ GUARANTEES all those persons with an economic stake in ings, "because ... there is just no way to Throughout the course of debate on the Chrysler's future are willing to make more tell who's coming forward with what at the Chrysler debate, little attention has been of a. sacrifice than has been made to date, moment." Private conversations with bank­ paid to the long-term impact of federal loan Congress should be hesitant to proceed on ers reveal that any ungua.ranteed lending to guarantees. Historically, government loan this specific request. There can be no deny­ Chrysler would not be considered as a "pru­ guarantees have played an important role in ing that a problem exists, but is Congress dent" banking risk. Suppliers, many of whom stimulating economic activity and allocating willing to commit itself and the nation's have been waiting over 120 days for payment economic resources, particularly to the hous­ resources to a program of long-term Federal by Chrysler on 30-da.y contracts, increasingly ing and agricultural sector. Recently, how­ assistance? Perhaps the legislation should be are reluctant to extend any further credit ever, the nature of loan guarantee programs sent back to Committee until such time as to the stricken company. and proposals has changed dramatically. As the complete picture of Chrysler's financing During the course of the full Committee the risk associated with these guarantees in­ needs is known and the local financing is in hearings on H.R. 5860, the true costs of the creases, questions a.re raised concerning how place.e newly ratified Chrysler-United Auto Workers the guarantees should be used and how they labor contra.ct were first revealed. Although should be controlled . . . the UAW contract with Chrysler is $200 mil­ The rapid growth in loan guarantees also EPPS AGAINST THE W ALir-EL lion less than wage pacts with Ford Motor causes concern. The value of guarantees la.st Company and General Motors, Mr. Gerald year was double what it was in 1970 and will MONTE, CALIF. FAMILY SPEAKS Greenwald, Chrysler's Executive Vice Presi­ approach $350 billion by 8eptember, 1980 ... OUT dent and Senior Financial Officer, responded At the Subcommittee's hearings, Dr. Alan to a. question posed by Mr. Stanton that the Greenspan, former Chairman of the Council new contract was "in excess of $1 b1111on" on Economic Advisers, pointed out that there HON. JOHN H. ROUSSELOT above and beyond the old contra.ct. Two days are long-term impacts and indirect costs­ OF CALIFORNIA later when testifying before the Senate Bank­ such as higher inflation due to an excessive IN THE HOUSE OF REPRESENTATIVES ing Committee, Alfred Kahn, Chairman of a.mount of credit preemption on the pa.rt of the Council of Wage and Price Sta.b1lity, the government--a.ssociated with federal Wednesday, November 28, 1979 stated that the new contract will cost $1.3 loan guarantee programs. Everyone should be e Mr. ROUSSELOT. Mr. Speaker, each bllllon more than the old contract over the aware that the true costs of Federal credit of us in the Congress is faced with the next three years. Previous press reports programs a.re their adverse effect on prosper­ quoted Chairman Kahn who labeled the constant challenge of maintaining our ity and future economic growth caused by sensitivity to the needs and feelings of Chrysler-UAW wage agreement as "inflation­ the allocation of capital a.way from its poten­ ary" and "outrageous." Further, Kahn was tially most productive uses ... This scenario the people at home we represent. There­ reported to have declared: "The UAW-Chrys­ is what Congress should consider each time fore, the letters we receive from our con­ ler contra.ct does not remotely approach the that it is asked to extend further the full stituents working outside the Washing­ kind of sacrifice the affected parties have got faith and credit of the United States. Given ton "ivory tower" to earn a living for to demonstrate as a. condition of being bailed out." this consideration the inflationary impact themselves and their families are inval­ Later, in a letter to our colleague, Jim statement in the Committee Report of this uable in helping us to keep in tune with Blanchard of Michigan, Chairman Kahn bill should be scrutinized carefully ... the times. In recent days, I have heard cla.rlfled hls earlier remarks by stating that CONCLUSION the same .message from the small busi­ his condemnation of the wage pact in no way We think it should be obvious in conclu­ nessmen in my district, again and again. lessened the Administration's support for its sion that this legislation is flawed in numer­ This message is coming from the people proposal to aid the Chrysler Corporation. ous ways. who run the businesses and meet the 33976 EXTENSIONS OF REMARKS November 28, 1979 payrolls. It is coming from the people which seek total federalization of the these options has advantages and drawbacks, who fully recognize the dangers inherent welfare system and which call for larger and each has supporters and critics. in a philosophy that runs rampant in and larger expenditures. Unfortunately, Reallocation of monies: Congress might this city-a philosophy based upon the our efforts have not yet met with suc­ choose to make no change in the overall pay­ belief that the Federal Government can cess, and the administration's more roll schedule since even a modest rollback would result in a huge loss of social security solve all of our problems and take care tr:aditional welfare "reform" proposal revenue. Congress might also resist a roll­ of all of our people all of the time. was adopted by the House. In my back because income tax reductions enacted Recently I received a letter from a opinion, the administration bill does ndt in 1978 will cushion the impact of payroll family in my district-the Epp family of contain the requisite keys for a sensible tax increases in 1979. A reallocation of mon­ El Monte, Calif. The Epps own and oper­ assistance progmm: Cost controls, help ies to the old age trust fund from the dis­ ate a small business, Snow Foam Prod­ only for the needy, jobs for the aible­ ability and hospital trust funds, however, ucts, Inc. I believe that their sentiments bodied, and the elimination of fraud. In would mean substantially greater revenues are widely held by the hard-working f'aet, if enacted, the adm.inistration bill for the old age program without any harmful will actually result in incireased expend­ effects on the other programs. Another way American taxpayer and are, therefore, to reach the same end would be to allow the well worth sharing with my colleagues. itures, waste, and fraud, and will not old age trust fund to borrow reserves on a DEAR Mr. RoussELoT: We are a small, fam­ deliver adequate help to the truly needy. short-term basis from the other trust funds. ily owned business, interested in profit for I would, once again, like to call the Although many Congressmen are reluctant ourselves and our employees. We could af­ attention of my colleagues to the senti­ to allow such borrowing for fear that it ford to, and would pay our employees more ments and frustrations expressed in the would become widespread, it might be al­ salary if we didn't have to pay so much tax Epp family letter. Remember thait for lowed only when necessary and only if the to carry able-bodied people on unemploy­ every costly program that we institute borrowed reserves could be returned when ment and welfare, as well as direct funded or enlarge here in the Congress, there is needeq. government programs such as CETA with a family .like the Epps who will haive to Other sources of revenue: Congress could which we compete. bear the burden of cost.• very well seek out sources of revenue other As a direct result of our government spon­ than a payroll tax on workers and employers sored welfare and unemployment programs, in the private sector. There is considerable we have been unable to fill vacancies in our SOCIAL SECURITY OPTIONS FOR feeling that the level of the payroll tax is factory. Too many people have become de­ too high. One source, recommended by Presi­ pendent on these programs, and we are rais­ THE FUTURE dent Franklin Roosevelt in 1935, would be ing a generation unwilling to work. Surely general government revenues. Congress has these programs were meant to tide people HON. LEE H. HAMILTON' rejected such use of general revenues several over a bad time, not to make permanent times in the past, but the idea has never guests of the government out of them. OF INDIANA been completely forgotten. A major objec­ F. RICHARD EPP IN THE HOUSE OF REPRESENTATIVES tion is that the use of general revenues CLAUDE H. EPP Wednesday, November 28, 1979 might make social security look like a gov­ LoIS L. EPP ernment "handout" instead of an earned CAROLL. EPP e Mr. HAMILTON. Mr. Speaker, I right. Another suggestion is to use general CHRIS EPP would like to insert my Washington revenues to cover hospital insurance, thus Report for Wednesday, November 28, easing the burden on the payroll tax. Stlll As I am certain th~ Epps will testify, 1979, into the CONGRESSIONAL RECORD: another source of revenue would be workers the tax burden on small business is enor­ and employers in the public and non-profit mous and often crippling. The unem­ SOCIAL SECURITY: OPTIONS FOR THE FUTURE sectors who a.re not currently covered by so­ ployment compensation tax is an in­ The social security programs--old age, dis­ cial security. Legislation to -extend coverage creasingly heavy burden, especially when ability, and hospital insurance-are among is pending in Congress, but it will have to combined with the escalating social secu­ the largest administered by the federal gov­ be examined carefully to ensure that earned ernment. In 1979 about 35 million aged and pension benefits are not lost. rity tax and general taxes to support so disabled persons will receive approximately many Government programs to help the Reductions in benefits: Congress could de­ $104 billion in benefits. Another 27 million cide to trim social security costs by making needy. Recently the Institute for Socio­ people will get more than $20 billion in hos­ selected reductions in benefits. For example, Economic Studies, working with Pace pit al benefits. It is apparent that the finan­ marginal benefits that have crept into the University, studied the profusion of over­ cial health of these programs is something system over the years, such as the burial lapping and sometimes contradictory in which every American, whether young or benefit and the dependent or survivor bene­ benefit programs. The study turned up old, has a stake. fit for children over 18, could be cut or elim­ 182 individual programs which last year Social security experts and actuaries be­ inated. As more women enter the labor force, cost a staggering $248.l billion-that's a lieve that the important old age and disabil­ spouse benefits might be phased down. Then, ity insurance programs-what most people too, more far-reaching reductions have been billion dollars more than the entire Fed­ call "social security"-are basically secure eral budget in 1973. No wonder taxes discussed. A bill could be passed to raise the and solvent for the next ha.If-century. A 1977 retirement age over a period of many years, must keep rising and no wonder the law increasing revenues and trimming long­ or the annual cost-of-living increase-a crit­ Federal budget will have a deficit of at range benefits is the primary reason for the ical factor behind higher costs-might be least $30 billion this fiscal year. optimistic projection. Because of higher ben­ placed under certain limits. A reduction in Furthermore, these programs have not efits induced by inflation and higher unem­ benefits, however, is very unpopular as a way ployment caused by a slowdown in the econ­ to economize in any government program. proven to be successful. A recent report omy, however, the old age trust fund may be issued by the General Accounting Office facing a temporary cash shortfall in the Income tax offset: Congress could tackle discusses the unemployment compensa­ early 1980s. The recent allocation of too the social security problem by cutting the tion system and discloses that the pres­ much money to the disability trust fund may income tax to offset increases in the payroll (1) be also be undoing some of the repairs that tax. There are at least two alternatives to be ent system enoourages people to: weighed. More simply-and as it did last unemployed longer, (2) exhaust com­ Congress completed with its 1977 law. An unknown political factor clouds the imme­ year-Congress could enact an income tax pensation, and (3) quit their most re­ cut sufficient to soften the impact of the cent jobs. Clearly, the unemployment diat e future of social security, too. There is some sentiment in this Congress for a roll­ payroll tax hike. A more complex move would compensation system needs to be studied, back of the payroll tax increases which have be enactment of new legislation to permit a evaluated, and reformed to correct these so improved the financial footing of social full or partial credit against income tax for inequities. security. payroll tax owed. Such a credit for employ­ ers would be provided by a bill now pending In an attempt to improve our coun­ Congressional committees are aware of the in Congress. try's welfare system and to eventually problem and have studied severe.I options for the future of social security. One alterna- As it looks at the future of social security, reduce the cost of the aid to families Congress does not find easy choices. But in tive is to leave overall payroll tax schedules with dependent children program the past Congress has shown that it will take (AFDC), I joined with 17 of my col­ in effect but reallocate monies among the tough steps to preserve and enhance the leagues in introducing the Family Wel­ trust funds. A second plan is to find sources of revenue other than a payroll tax on work­ financial integrity of social security. My be- foundation for and readiness, the Department of De­ cials have urged the Government to allow true democracy. Public libraries are sin­ fense is increasing the number of full­ airlifts to the major provincial airports, in gularly equipped to assist the Nation in time National Guard training support parttcula.r Kompong Chhnang, Siem Rea.p reaching this goal by providing free personnel. Unfortunately, due to an over­ and Battambang. communicative materials and services sight in the law, National Guardsmen They have accepted the Government's re­ pertaining to every cultural, intellectual, serving in this new capacity are not en­ luctance to allow Western planes to fiy there, and social aspect of our lives. titled to various Federal benefits, includ­ presumably to honor the secrecy that at­ In the past few years, however, many ing medical care for dependents, and taches to mmtary operations oonducted by libraries in various parts of the country the Vietnamese air force and possible Soviet time credited toward retirement. supply filghts for the 200,000 Vietnamese oc­ have been forced by inflation and mu­ Clearly, this is not the intent of Con­ cupatiollj troops. Thus they have suggested nicipal budget reductions to cut staffs, gress, since all other National Guards­ that a Communist country-East Germany eliminate some services, shorten hours, men, when called to active duty for any has been a.pproa.ched-fiy Western food there. close branches completely, delay essen­ other reason, are entitled to these ben­ A response is stm awaited. tial repair work, and cancel expansio~ efits. The situation merely reflects a COMMUNISTS SAm TO BE AIDING projects-all this at a time when library statutory oversight. The Phnom Penh authorities suggest that usage has been increasing. H.R. 5753 would correct this injustice adequate supplies are being received from The cost of buying, processing, and by insuring that all National Guards­ Vietnam and other Communist countries. In distributing information materials has men are treated in a fair and consistent particular, they assert that the Soviet Union risen faster than the overall inflation manner. has given Cambodia. 200,000 tons of foods. rate in recent years. Libraries have thus Earlier this year, I joined a majority All logistical experts agree that this figure is 1 totally beyond wha.t Ca.mbodia. could ha.ve been caught in an especially tight eco­ of my colleagues in voting against a pro­ absorbed. nomic squeeze as budgets have, at best, posal requiring 18-year-old males to reg- Two weeks ago in; Phnom Penh, a visitor only kept pace wi'th general rises in the ister with their local draft boards. I op­ heard constant comments from people who cost of living. posed such a measure because I am not sa.ld that they were hungry a.nd that the According to the Urban Libraries convinced that either resumption of the 33980 EXTENSIONS OF REMARKS November 28, 1979 peacetime draft or registration would im­ In recognition that immediate discontinu­ the budget should be balanced. To ap­ ance of revenue sharing would injure those prove our overall defense capability. cities and local governments that are al­ proach fiscal responsibility, the budget Instead, I have long favored incentives ready dependent on the funds, we advocate should be cut. that would help to strengthen our All­ that the program be phased out over a three With the advent of the Budget and Volunteer Army, military Reserves, and year period with one-third of the funds being Impoundment Control Act of 1979, Con­ National Guard, so they can be called withdrawn each year over the next three gress was supposed to avoid unnecessary immediately into service in time of na­ years in equal measure from all State, City deficits. The rationale for prior deficits tional emergency. Adequately manned and other levels of local government. Fur­ was that there was no general overview thermore, the reduction of these funds and efficiently trained Reserves are a should be visibly reflected in a reduction of for budget planning. Money was appro­ necessity in order to protect the security the Federal deficit. priated for each department, or spending of our Nation. It is for mankind that we Passed, approved, and adopted, this 5th category, separately. There was no con­ seek security, because in security, there day of November, 1979. trolled plan, no means of determining is peace. J. R. BIRDWELL, the amounts that could be spent. Deficits Certainly, H.R. 5753 will provide such Mayor, that were incurred were, in effect, fiscal an incentive. The 2-year National Guard City of Lake Jackson.e "accidents." test program will end in July, and if the But today, Congress is told how much results are as expected, the Department THE BUDGET PROCESS AND money it has to spend each year and yet of Defense will be attempting to sig­ INFLATION our deficits are greater than ever. In the nificantly increase the number of full­ 5 years before budgetary planning, the time training support personnel. How­ Federal deficits were $3, $23, $23, $15, and ever, without adequate benefits, the job HON. ROBERT K. DORN\AN $5 billion. In the 5 years since the budget position will be unable to attract the nec­ OF CALIFORNIA process was initiated, the knowledge that essary personnel. IN THE HOUSE OF REPRESENTATIVES more Government spending is creating Mr. Speaker, while H.R. 5753 provides greater Federal indebtedness does not for only a minor revision in current law, Wednesday, November 28, 1979 appear to inhibit the actions of those it will have a significant and positive im­ •Mr. DORNAN. Mr. Speaker, today's who control the Nation's purse strings. pact on the capability of our National vote on the second budget resolution was That deepening Federal indebtedness is Guard. The House, by dealing with this a litmus test of congressional will on the bankrupting the country is a fact bla­ issue in a prompt and responsible man­ issue of Government spending. Would tantly ignored. · ner, has displayed real concern for the the majority have had the conviction An alternative "Budget of Hope" was military preparedness of our Nation.• to at least keep expenditures at a offered by the minority calling for a level equal to the first budget resolution $20 billion cut in taxes and a $9.2 billion of May? But the utter failure to do so, reduction in the deficit. The majority REVENUE SHARING CONTINUES TO given the state of the Nation's economy, united to defeat this modest relief effort, CONTRIBUTE TO INFLATION leads me to conclude that the leadership refusing an opportunity to demonstrate of this body simply does not want to con­ a commitment to economic responsibility. HON. RON PAUL trol spending. Congress must exert :fiscal restraint to OF TEXAS The budget increased, in part, due to truly represent the will of the people. To IN THE HOUSE OF REPRESENTATIVES the 30 percent of the budget outlays put it bluntly, increasing Federal spend­ which are tied to the Consumer Price ing is increasing bureaucratic political Wednesday, November 28, 1979 Index. "Windfall" revenues increased at control. Government must relinquish its • Mr. PAUL. Mr. Speaker, earlier this a more rapid rate, though, due to a 13- grip over our people before the Nation month the city council of Lake Jackson, percent inflation rate. The fact of the and its economy sink in a mire of un­ Tex., my hometown, passed a resolution matter is that $9 billion was added to the productive, inflationary spending pro­ calling for the elimination of the Federal second resolution for new and expensiVe grams.• revenue sharing program. Pointing out spending programs. Is this an example of that revenue sharing contributes to the "the restraint" of which this body's lead­ problem of inflation, the city council ership speaks? FEDERAL ENERGY WASTE noted that inflation is currently costing The annual budget process is a num­ the city of Lake Jackson over $500,000 bers game. Much of what we discuss is HON. LAMAR GUDGER per year as compared to approximately based on estimates, projections, and con­ OF NORTH CAROLINA $100,000 per year received in revenue jecture. But there is also an unquanti­ sharing. I ask that the city council's reso­ fiable element: responsibility. Congress IN THE HOUSE OF REPRESENTATIVES lution be printed in toto, and I congratu­ must retain the Nation's trust. With to­ Wednesday, November 28, 1979 late them on the position they have day's second budget resolution, the ma­ • Mr. GUDGER. Mr. Speaker, as all of taken. jority has demonstrated a determination us know by now, the Government Opera­ The resolution follows: to ignore the problems that plague our tions Committee of this House has RESOLUTION No. 79-R-148 stagnant economy. While the country charged that the Federal Government, Whereas, the City of Lake Jackson has al­ cries for economic restraint we see, in­ far and away this country's biggest con­ ways operated on a balanced budget; and stead, a repetition of the old deficit doc­ sumer of energy, lags behind much of the Whereas, unbalanced budgets are highly trine: Spend, spend, spend. Nation in energy conservation. More­ inflationary; and Whereas, inflation is eating at the very The American public is expected to over, in it.s report issued on November 2, fabric of our society; and marvel that Congress "held" the deficit 1979, the committee contends that the Whereas, inflation is currently costing the to $29 billion for a second consecutive Department of Energy itself has had City of Lake Jackson over $5-00,000 per year year. How arrogant to believe that the "an abysmal record in energy saving." As as compared to approximately $100,000 per American people will somehow accept the committee stated it, the Department year received in revenue sharing; this as "austere." of Energy has failed "to lead and inspire Now therefore, be it resolved by the Coun­ cil of the City of Lake Jackson, Texas: My home State of California recently the American people to conserve energy passed an initiative limiting the amount by setting an appropriate example in That the City Council of the City of Lake Jackson, Texas, encourages the Federal Gov­ the Government may spend. The initia­ terms of the Federal Government's own ernment to balance the federal budget in the tive passed three to one, a greater margin u.se of energy." Finally, the committee belief that a balanced budget can restore than that enjoyed by the landmark, tax­ says that a.s far as the Department of confidence in the currency, and reduce the cutting Proposition 13. Energy is concerned, the problem is one inflationary pressure which the federal gov­ The American electorate is speaking of "attitude and leadership." ernment ha.s·put on the economy. loudly and clearly. Our economy must be We do not have to review all the sta­ One of the ways that the cities and the turned around immediately. At the very tistical details of the committee's report Federal Government can work together to balance the budget is to discontinue revenue least, any additional revenues should be to support a conclusion that its findings sharing. Revenue sharing presently costs us applied to reducing the Federal debt-­ are alarming. News that the Federal more in tax dollars, ad'ministrative overhead, not used as an opportunity to finance Government itself cannot restrain its and inflation than we are getting in return. yet more projects. To deal with inflation, consumption of energy will only encour- November 28, 1979 EXTENSIONS OF REMARKS 33981 age many Americans to disregard Presi­ voters rides to the polls, and has served to keep the staff happy and to make dent Carter's repeated calls for energy as a babysitter while mothers would go sure they are doing their job. conservation. They will continue to burn out to vote. Mr. Beazley's experience as both gasoline and heating oil in the honest, Only those who have worked in politi­ teachei: and school board member has if unfounded belief that the energy crisis cal campaigns can truly know how tedi­ obviously given him invaluable insight is a myth. In the committee's words: ous and taxing these things can be on an into our educational system. The Federal Government's !allure to con­ individual's energies. Zita has always As a token of their high respect and serve energy can only invite public cynicism been the one to cheer and encourage appreciation for Mr. Beazley's valuable and apathy toward administration exhorta­ those who might otherwise give up. Her contributions to public education, the tions on behalf o! conservation. friendly attitude and her willingness to Amador Valley Joint Union High School The findings of our esteemed col­ help have made Zita a valued friend. District will honor Mr. Beazley with a leagues on the Government Operations In addition to her grassroots efforts, banquet at the Willow Tree Restaurant, Committee led me to send a letter to the Zita has also served in many leadership Dublin, on Wednesday, November 28, President just before the Thanksgiving capacities within the Democratic Party. 1979. The students, parents, and teachers recess urging him to take the lead in in­ Over the years, she has been a mem­ of Amador Valley could not have picked sisting that all Federal Government de­ ber of the executive committee of the a finer person to honor.e partments and agencies, including the Democratic State Committee in San Department of Energy, respond to his Francisco, Alhambra, and Long Beach. She is also a former president of the HUMAN RIGHTS-THE PHENOME­ own requests for energy conservation. NON OF DISAPPEARANCES The implications for energy of the ap­ Democratic Women's Club of Alhambra palling events in Tehran intensify the and a two-term president of the Demo­ need for the President to exert his influ­ cratic Women's Club of Long Beach. HON. EDWARD J'. DERWINSKI ence. C.ertainly, Americans will pay the Aside from the innumerable local OF ll.LINOIS costs of energy conservation more will­ candidates she has assisted, Zita has also IN THE HOUSE OF REPRESENTATIVES worked on behalf of such figures as Alfred ingly and more cheerfully if they know Wednesday, November 28, 1979 that their Government is curbing its own E. Smith, Franklin D. Roosevelt, Adlai consumption. I hope that some of my Stevenson, John F. Kennedy, Lyn.don B. • Mr. DERWINSKI. Mr. Speaker, the colleagues will join me in urging the Johnson, Hubert H. Humphrey, ALAN Subcommittee on International Or­ President to take a strong hand.• CRANSTON, Richard Richards, John v. ganizations, of which I am ranking Tunney, Edmund G. Brown, Sr., Edmund minority member, recently concluded a G. Brown, Jr. and, most recently, Presi­ series of hearings on "Human Rights­ ZITA DONEGAN RE:MLEY-THE REN­ dent Jimmy Carter. The Phenomenon of Disappearances." I AISSANCE WOMAN My wife Lee joins with me in saluting regret that Mr. Huber Matos, recently this lady of widespread accomplish­ released from 20 years in prison in Cuba ment for her contributions to the better­ for protesting the Communist takeover HON. GLENN M. ANDERSON ment of her community. We extend our of the Cuban Revolution, was not avail­ OF CALIFORNIA sincere wishes to Zita for many more able to testify on the disappearances in IN THE HOVSE OF REPRESENTATIVES years of meaµingful involvement in Cuba touched upon in the Washington Wednesday, November 28, 1979 shaping her future by her participation Star, in its editorial of November 22, in the electoral process.• 1979. e Mr. ANDERSON of California. Mr. The Star makes a second interesting Speaker, on December 5, 1979, the many point in its editorial in citing Matos• friends of Zita Donegan Remley will "warnings to the United States against gather together to express their deep af­ A TRIBUTE TO CHARLES BEAZLEY giving the Castro government the benefit fection and admiration for this lady at of American technology, investment and a dinner to be held in her honor in Long commerce, as it periodically suggested Beach, Calif. HON. FORTNEY H. (PETE) STARK OF CALIFORNIA after American lawmakers and media For over 50 years, Zita has dedicated stars have had get-togethers with El her life to serving others, whether it be IN THE HOUSE OF REPRESENTATIVES Hombre." her family, her community, or her Demo­ Wednesday, November 28, 1979 cratic Party. I think the Washington Star made • Mr. STARK. Mr. Speaker, it is a pleas­ some good points in the editorial worth A native of Nebraska, Zita's first in­ being reprinted below: volvement in civic affairs came at the age ure to bring to your attention a resident of 14 when she became a charter member of California's Ninth District, Mr. THE HUBER MATOS MESSAGE of the American Legion Auxiliary of that Charles Beazley, now retiring as a trus­ Until recently, news of dissidents in com­ State. tee of the Amador Valley Joint Union munist countries all but skipped Cuba. High School District. China., yes; Czeohoslova.kia., yes; the Soviet Married in 1925, Zita spent the next Union, yes indeed. But, while there has been years of her life raising a family. Sons Charles Beazley brought his many tal­ an active Cuban exile community 1n Florida Edgar, Noel, and Joseph have given Zita ents to the Amador Valley School Board and elsewhere in the United States ever since 14 grandchildren and five great-grand­ in 1967 after a long and productive ca­ Fidel Castro took over, there has been almost children. reer as a high school teacher, physical no visible opposition to the regime inside As an active member of her community, education coach, computer operator, and CUba.. college registrar. At a conservative esti­ Among Cuba's political prisoners, though, Zita spends much of her time in civic there has been one human rights ca.use affairs. She works tirelessly on behalf of mate, he has spent 453 hours sitting be­ celebre: Huber Matos. This man, who left Long Beach's senior citizens. She has also hind the board table working to improve his job as a. teacher to serve in the army worked for the Home Services Division the quality of education in Amador fighting the Batista. dictatorship, went to of the Red Cross. Zita also finds the time Valley. prison in 1959, charged with "implying that to give to numerous charitable organi­ Mr. Beazley's deep personal commit­ the revolution was communist." zations including the Ebell Club, a wom­ ment to quality education is an inspira­ Huber Matos was, as Mr. Castro put it en's club in Los Angeles which raises tion to future school board members. I when he testified .against him for six hours at his trial, "worse than a. traitor: an in­ funds for college scholarships, and the would like to share some of his thought­ grate." With the help of Amnesty Interna­ Catholic Daughters of America. ful comments on school board service. tional and worldwide agitation by other But it is perhaps in the political arena Keep asking yourself, "Why am I human rights groups for his release, the in­ that Zita has found her greatest recog­ here?" The answer--despite collective grate got otf with 20 yea.rs o! beatings and nition. It must be remembered that in bargaining and diminishing finances-is solitary confinement, often naked, in small order for our two-party system to thrive, still "We're here for the students and ooncrete cells. it is necessary for individuals to take key for the staff." I think we need to keep He never broke under the pressures. Freed roles in maintaining its vitality. Zita a. month ago, he 1s in this country, beginning reminding ourselves that as board mem­ to recover his health and tell his story. Remley is such a person. bers our task is to answer, "What can be And there it is a.gain-the basic dissident Zita has walked precincts, stuffed done to give our students the best pos­ · story. In spite o! what some analysts tell us envelopes, made telephone calls, given sible education?" For me, the answer is a.bout how cultural diversity individualizes 33982 EXTENSIONS OF REMARKS November 28, 1979 communist states, it ls not much different Greensboro Police Department informed the between some blacks and some whites in from what has happened to Huber Matos' Klan that an anti-Klan rally was to take the United States, and he is trying to counterparts in China, the Soviet Union, ·place on November 4 at the aforesaid hous­ Yugoslavia, Bulgaria, Poland, Rom1µ1ia or ing project, by giving a copy of the parade drive a wedge between us. It cannot work. Vietnam. permit to a man who identified himself as a The American people are like family. We The Castro explanation for the Cuban member of the Ku Klux Klan, and may have our domestic differences, but refugee colonies of the Southeastern United Whereas, the Greensboro police, who were we all band together when attacked from States ls that they are all rich people trying at the scene, left the immediate area when an outside force. This is a second fact of to hold on to their privlleges and stay on the Klan arrived, thereby allowing the in­ American life that Khomeini does not the CIA payroll. Mr. Matos insists that he evitable violence to take place, an<1 understand. doesn't belong in any such category; that he Whereas, these events could only occur be­ And the ayatollah apparently does not broke with the Castro movement when it cause the Klan 1s a legally-sanctioned orga­ sutnciently realize that the respect he could have set up democratic institutions nization, and such crimes Will continue as in Cuba but chose instead to go communist long as the Klan is a. legally-sanctioned or­ claims to have for all females, is extended and guarantee Mr. Castro's dictatorial ganize. tion, in this Nation to all people. Men and powers. Now, therefore be it resolved, that the women; young and old; Christian, Jew, The conditions Mr. Matos endured in his New York County Executive Committee or Moslem-all deserve our respect. And two decades of prison are, he says, still the the Democratic Party this respect, which at its most basic is fate of countless Cuban~ountless because Condemns the genocidal acts o! the Klan really a respect for humanity, makes us uncounted. For many people working on in Greensboro, and calls for the full and realize that all people have a right to be prison farms and in traveling forced-labor speedy prosecution of the murderers; free. So it is more than a sign of disre­ gangs like the one that bullt the imposing Condemns the failure of the Greensboro Soviet embassy in Havana, there are no Police Department to protect the citizens at­ spect, it is a sign of inhumanity, when records. These people simply disappear from tacked by the Klan; and this freedom is denied. Khomeini misun­ history after arrest. The best-intentioned Calls for an end to the legal sanctioning of derstands our belief on this, by thinking human rights groups cannot find out about the terrorist organization of the Ku Klux the American people will only be out.. them. Klan, by federal legislation outlawing such raged if physical harm comes to the hos­ How many times have we been through orga.nization.e tages. It is our consideration that their that script with different ethnic trimmings? humanity is already being violated. Mr. Matos' account of CUba'lil economic Finally, Khomeini is mistaken if he squalor and subservience to the Soviet Union ANDERSON DISCUSSES RELEASE OF believes that the United States will not ls equally fa.m111ar. So are his warnings to HOSTAGES the United States against giving the Castro react firmly to the crisis his government government the benefit of American tech­ has created. We will not be blackmailed 1 by our desire for Iranian oil. We will not nology, investment and commerce, as is pe­ HON • GLENN M. ANDERSON kow-tow to their illegal actions against riodlca.lly suggested after American lawmak­ OF CALIFORNIA ers and media stars have had get-togethers the hostages and our Government of with El Hombre. IN THE HOUSE OF REPRESENTATIVES whom all our citizens are a part. The At the same time, it's always news when Wednesday, November 28, 1979 Iranian Government and its citizens the brave and honest potentialities of hu­ must realize this. They must act to alle­ man nature stand up to the human penchant e Mr. ANDERSON of California. Mr. for cruelty and degradation. That message­ Speaker, none of us can be displeased viate the situation which they created. the essential Huber Matos message-is one with the release of even a few of the U.S. It is a situation which our unified Nation we can never hear too often.e citizens being illegally held hostage at will not long tolerate.• our Embassy in Iran. I think it is worth mentioning, though, that it reflects a A NEW LOW FOR MR. NADER TERRORISM IN NORTH CAROLINA basic misunderstanding on the part of the captors regarding our political sys­ HON. CHARLES B. RANGEL tem and the people of the United States. HON. ROMANO L. MAZZOLI OF NEW YORK The Iranians, at the urging of the Aya­ OF KENTUCKY tollah Khomeini, released some of those IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES Americans who happened to be female Wednesday, November 28, 1979 or black. They did so, it is said, because Wednesday, November 28, 1979 • Mr. RANGEL. Mr. Speaker, I rise to of their respect for women and out of • Mr. MAZZOLI. Mr. Speaker, I have to express my outrage at the events that "recognition" that blacks in this country agree with the recent editorial in the took place in Greensboro, N.C., on No­ are not involved in our Government's Washington Star of November 23, 1979. vember 4, 1979. On that dark day, mem­ decisionmaking process. The Iranians I think Ralph Nader-despite his bers of the two most despicable, hate have also said that they have nothing arguably good intentions-hit the very mongering groups in the Nation, the against the American people, but only bottom of the barrel in his discussions American Nazi Party and the Ku Klux against our Government. with Senator GARN over vehicle safety. Klan, indiscriminately fired upon a Mr. Speaker, the U.S. Government is At this point I wish to extend the edi­ the people of this country. An action group of unarmed people. Five of those torial which appeared in the Star on aimed at one is an action that attacks November 23: people were killed, and many were both. We are inseparable. wounded; some seriously. A NEW Low FOR MR. NADER The Iranians simply do not understand It would take a dramatist of formidable '!be whole Nation shuddered at this us if they release black hostages thinking tragic news, which evoked haunting powers to create a display of sanctimonious­ they are not part of our Government. ness more chllling than the one Ralph Nader memories of past struggles for human They are. You cannot single out for at­ put on the other day at a hearing of the rights and dignity that were marked with tack black Americans or white Ameri­ Senate Banking Committee. With astonish­ similar acts of senseless violence. cans. We are all Americans, and I think ing gall, he hectored Senator Jake Garn of A constituent of mine, Ms. Anne we all refuse to be distinguished as any­ Utah about an auto accident three years Schutzberger, was so moved by this trag­ thing else by foreign nations. And it is ago in which the senator's wife was kllled­ edy that she wrote a resolution con­ and when Senator Garn made strenuous ob­ perhaps ironic to note that in 1976, an jection to this assault, he accused him of demning those organizations. I would overwhelming majority of black voters like to share this resolution with my "melodramatic pillorying." supported the election of President Car­ The melodrama, it should be pointed out, colleagues. ter, who Khomeini has continuously dis­ was Mr. Nader's own. The circumstances of The resolution follows: paraged. The Iranian leader has said Mrs. Garn's death had absolutely nothing to Whereas, on November 4, 1979 in Greens­ that the President has no fallowing in do with the subje'ct of the hearing: the boro, North Carolina, members of the Ku the United States. Khomeini is wrong. Chrysler loan bill. But Mr. Nader lost no Klux Klan, using shotguns and a semiauto­ time in twisting the Garn family's calamity matic ri:tle, fired an intense fusillade into a The American people are ready to follow the President in his efforts to remedy the to fit his argument. The exchange between crowd at a black housing project, killing five the two men, which became increasingly people and injuring many others, and situation in Iran. heated and bitter, began as follows: Whereas, these fatal shootings add another In his selective release of hostages, Senator Garn: "If the American consum­ heinous crime to the Klan's century-old leg­ Khomeini is trying to breed dissent here ers knew what you've cost us in the name acy of genocide, and in our country. He has read of disagree­ of consumerism, they'd run you out of the Whereas, two days before the attack, the ments that may arise from time to time· country." November 28, 1979 EXTENSIONS OF REMARKS 33983 Mr. Nader: "I suspect, Sena.tor Garn, that ance coverage for such risk coverage in surance agents and brokers and give the in­ some senator's personal tragedy might not the FCIC all-risk policy with a ftat credit sured the right to renew said insurance for have occurred if the auto Jndustry had successive terms through such agents and listened to us in the early years ..." of 25 percent deducted from the all-risk premium upon presentation of proof of brokers, in which case the agent or broker Once he ha.d jumped into the trough, Mr. shall be reasonably compensated for said Nader wallowed with all his might. Display­ purchase of private hail and fire sales and renewals recognizing his function ing only marginal knowledge of the facts of coverage. to provide continuing services while the dn­ the case, he proceeded to assert that Mrs. I want to point out that items Cl) and surance ls in effect. The Board shall provide Garn "could have been saved" had the auto (2) are merely clarifications of the inten­ such agents and brokers with indemnifica­ industry only heeded his own wise counsel tions of the sponsors of H.R. 4119 but tion, including costs and reasonable attorney about safety. Small matter that Mrs. Garn that item (3) is a substantial change fees, from the Federal Crop Insurance Cor­ was wearing a seat belt at the time of the which should end the debate on whether poration for errors or om!l.ssions on the pa.rt era.sh. Small matter that three of the Garn's of the Corporation or its contractors for children, who were not wearing seat belts, or not H.R. 4119 will have a negative which the agent or broker is sued or held survived the crash without serious injury. impact on the private sector and at the liable, except to the extent the agent or Mr. Nader interpreted the facts to suit his same time provide farmers better cover­ broker has caused the error or omission.". own convenience, and when Senator Garn age for their premium dollars. Page 19, on line 8, strike out "(A)" and had the effrontery to question this exploita­ A number of positive impacts will be beginning on line · 10, immediately after tion of his family's misery, Mr. Nader forthcoming from the adoption of this "species," strike out all through the end of thundered down from his mountain: amendment. It will reduce the appre­ line 2, page 20, and dnsert a semicolon in lieu "Don't try to over-emote. I'm saying that thereof. safer cars could save many Americans, in­ hensions of the industry that the· ex­ panded Federal crop insurance program Page 21, immediately after the end of the cluding people in crashes of that kind. And sentence on line 13, insert the following: for you to try to pillory me because I'm try­ could supplant the private hail insurance "The producer may elect to have deleted ing to say your wife could have been saved business and at the same time encourage from the Corporation's policy of insurance from a casualty of that kind is irresponsi­ an enthusiastic effort within the private the coverage against losses caused by both ble." sector to assist in marketing and servic­ hall and fire and to obtain coverage therefor Mr. Nader ls a public scold and from time ing the policies. This, in turn, will in­ from a private insurer. Upon notice of such to time a useful one. In his effort to capital­ election in writdng to the Corporation and ize on the Garn family's loss, however, he crease farmer participation thereby making the program more successful. submission of evidence of such substitute wa.s irresport.sible if not worse. He owes the coverage on the commodities insured by the senator and his family a. forthright and pub­ Under the bill, with this amendment, Corporation in an amount not less than that lic apology.e the private sector could be involved in provided by the Corporation's policy, the pro­ four different ways: ducer's premium as calculated by the Cor­ First. Independent agents could sell poration shall be reduced by 25 per centum, PRIVATE INSURANCE HAIL POLI­ and service the Federal all-risk policy but not to exceed the premium for the sub­ CIES CAN COMPETE WITH THE with compensation and proprietary stlltute coverage.". SUBSIDIZED FEDERAL ALL-RISK rights negotiated. Page 21, on line 16, immediately after "cov­ POLICIES erage" insert "on the Corporation's policy of Second. Private companies could con­ insurance". tract with FCIC to administer the pro­ Page 22, on line 17, immediately after HON. ED JONES gram in a given geographical area, with­ "such companies," insert "and relnsurers of out any risk assumption. OF TENNESSEE such companies, or" and on line 21, immedi­ Third. Reinsurance or risk-sharing ar­ ately after "the Corporation" dnsert ", in­ IN THE HOUSE OF REPRESENTATIVES rangements could be entered into be­ cluding a test program made available, to the Wednesday, November 28, 1979 tween FCIC and private companies. maximum extent possible, not later than the Fourth. FCIC could provide cata­ 1982 crop year". • Mr. JONES of Tennessee. Mr. Speaker, Page 22, at the end of line 21, insert the today I want to insert into the RECORD strophic coverage or reinsurance to a private sector reinsuror which is cover­ following: and explain an amendment which Con­ "In order to provide equity among pro­ gressman ED MADIGAN and I will offer to ing the company actually delivering the program. ducers purchasing crop insurance, when­ H.R. 4119, the Federal Crop Insurance ever the Corporation provides reinsurance Act, when it comes to the ftoor of the Mr. Speaker, I believe the adoption of under this subsection to any such insurers, House. This amendment is designed to H.R. 4119 with these changes will ac­ the Corporation shall pay a portion of each alleviate the concerns of the private in­ complish our goal of providing Ameri­ producer's premium for such insurance so surance industry which feels its hail pol­ can farmers the opportunity to suffi­ reinsured. Each such payment shall cover the ciently protect themselves, with signifi­ same per centum of the premium, and be icies cannot compete with the subsidized subject to the same restrictions regarding Federal all-risk policy. cant Federal participation, from crip­ pling natural disasters. They would no payments of premiums for crop insurance on This amendment has the sup1><>rt of commodities, as provided in subsection (b) the National Crop Insurance Associa­ longer have to wait hat-in-hand for Con­ of this section for Federal partial payments tion-the primary private crop insurance gress to come to their aid after a disaster of Federal crop insurance premdums. The industry trade organization composed of strikes. Additionally, these new crop in­ Corporation shall also pay operating and ad­ 106 companies. Additionally, NCIA has surance programs would gradually re­ ministrative costs to insurers of policies on expressed its support of H.R. 4119 if this duce the need for the disaster loan and which the Corporation provides reinsurance payment programs of USDA which have to the same extent that such costs a.re cov­ amendment is included. ered by appropriated funds on the Corpora­ The amendment has three basic been. frequently abused. I ask each of my colleagues to sup­ tion's policies of insurance. Insurers of pold­ provisions : cles on which reinsurance is provided shall First. To assure that private insurance port this amendment when it is offered. make use of licensed private insurance agents agents and companies are utilized in The language of the amendment follows: and brokers on the same basis as provided making the program available to all AMENDMENT BY MR. JONES AND M .R . MADIGAN for policies of the Corporation under section farmers nationwide and that the con­ TO H.R. 4119 507(c) (3) ·• tracts between the Federal Crop Insur­ Page 18, strike out lines 5 through 11, and ance Corporation and the industry pro­ insert in lieu thereof the following: vide terms and conditions consistent "(c) In the administration of thds title, A "CAPPING CEREMONY" FOR DIS­ with prevailing industry standards for the Board shall, to the maximum extent pos­ sible, (1) establish or use committees or as­ TINGUISHED STUDENTS comparable services; sociations of producers and make payments Second. To provide that the FCIC en­ to them to cover the administrative and ter into a test reinsurance contract with program expenses, as determined by the HON. CLARENCE D. LONG one or more private companies by the Board, of cooperating in carrying out this OF MARYLAND title, (2) contract wdth private insurance 1982 crop year and to assure all the ben­ IN THE HOUSE OF REPRESENTATIVES efits extended to holders of the Federal companies and reimburse such companies for policy be also extended to the policy­ the adm.lnistrative and program expenses in­ Wednesday, November 28, 1979 curred by them, under terms and provisions holders of private companies reinsured consistent with those generally prevail1ng in • Mr. LONG of Maryland. Mr. Speaker, by FCIC; and the industry respecting rates of compensa­ I commend 16 seniors from the Eastern Third. To provide producers an option tion, and (3) encourage the sale of Federal Vocation-Technical High School in Es­ to substitute private hail and fire insur- crop dnsurance through licensed private in- sex, Md., who will be recognized in a 33984 EXTENSIONS OF REMARKS November 28, 1979 "Capping Ceremony" for distinguished ing and the continuous displacement of ment therefore bec.a,me concentrated among students. workers by machines. What has changed groups of people entering the work force or The students are training to become significantly in this period of time is, breaking out of occupa.tiona.l "ghettos" that had consigned them to low-level jobs: licensed practical nurses. They will, after however, the substantial increase in un­ women, ra.cia.l minorities, the young. graduation, provide much needed health employment levels both during normal Politically, such disparities could not be services in hospitals, doctors' offices, and times as well as recessions. tolerated. Economists argued though that the community health facilities. A month ago, the House Subcommittee problem was ma.inly one of "structural un­ The program offered at Eastern Voca­ on Labor Standards, chaired by Repre­ employment." Many of these women, blacks tional-Technical High School is unique sentative EDWARD BEARD, held the first a.nd teenage job-seekers la.eked the required because the professional health training major congressional hearing on overtime skills and experience to handle the aive.ila.ble and worktime issues in more than a dec­ jobs. So job-training programs were estab­ is offered to high school students. Usu­ lished. Programs to aid or retrain displaced ally, LPN training is offered only by jun­ ade. The focus of the hearings was the workers a.nd homemakers were created. After ior colleges. Fair Labor Standards Amendments of they ha.d completed the training or retrain­ I hope my colleagues will join me in 1979, which I have introduced along with ing programs, many of the "structurally un­ honoring these fine young people. 13 Members, to raise the overtime rate to employed" still could not find jobs. There­ The school principal is Raymond double time, require the consent of em­ fore, the Government ha.d to enlarge its role Pluemer. The coordinator is Dorothy Mc­ ployees in the scheduling of overtime, as employer of last resort, with programs Adams, R.N. The teachers are Gertrud and over a 4-year period to reduce the funded by the Comprehensive Employment and Training Act of 1974 a.nd accelerated Birkholz, R.N., and Susan K.ruchko, R.N. workweek to 35 hours. expenditures for public works. In 1977, a The names of the students are: The legislation to shorten the work­ Labor Department official estimated that the Carolee Ada.ms, Ka.y Biemer, Loretta. Brown, week and curb excessive overtime has to Gover.nment was spending $13 billion to $15 Kimberly Diem, Deborah Greene, Susan be viewed in the context of chronic un­ b1llion annually on jobs. Heim, Shirley Johnston, Theresa. McMona.gle. employment and of efforts to move to­ In the early 1960's, Federal manpower pol­ Ka.ye Smith, Denise Sommers, Maryanne ward a full employment economy. In this icy stressed economic expansion. Later, em­ Sprezia.n, Christine Sprole, Teresa. Stea.fen, regard, I recommend that my colleagues phasis shifted from this theme and toward Linda. Ta.lla.gsec, Caroline Wilson, Mary read the following commentary, "Full the idea. of "targeting" jobs to economically Young.e disadvantaged groups. Employers were given Employment for All,'' that appeared on ta.x incentives to hire the chronically unem­ the op-ed page of the New York Times, ployed and other ha.rd-to-place aipplica.nts. THE SHORTER WORKWEEK AND November 13. The author, William Mc­ Affi.rma.tive-a.ctlon programs were intended FULL EMPLOYMENT caughey, Jr., an industrial accountant to help women and blacks assume their share and ia leading advocate of a shorter of the jobs that became available a.t various workweek, examines rthe recent history levels of rank a.nd pay. This approach gen­ HON. JOHN CONYERS, JR. of working time and its relation to creat­ erated a. backlash e.mong white males, who complained of "reverse discrimination." OF ing full employment. MICHIGAN Moreover, it ha.s failed to lower the propor­ IN THE HOUSE OF REPRFSENTATIVES The article follows: tion of black to white unemployment a.nd F'uLL EMPLOYMENT FOR ALL Wednesday, November 28, 1979 to narrow the ga.p between men's a.nd (By WilUa.m McCa.ughey, Jr.) women's average earnings. •Mr. CONYERS. Mr. Speaker, a century WHITE BEAR LAKE, MINN.-The advancing To target jobs to people ·because they be­ and a half ago, American workers were edge of productivity a.nd the fixed structure long to a. socio-economic or demographic on the job from sunup to sundown. The of working hours, like the blades of a pair of group suggests that such. persons cannot demand for shorter working hours was at scissors, are cutting people from their jobs. compete successfully for jobs on their own; it suggests that they a.re personally incapable the center of all major labor events in Between 1950 a.nd 1978, productivity in the of handling the work or need various kinds the 19th century-1the first industrial private sector doubled, but the average work of remedial help. strike, the building of labor organiza­ week in the labor force dropped by only 2.7 That is not the problem. hours-from 41.7 hours in 1950 to 39. This tions, the participation of women in the Rather, it is that job opportunities be­ labor movement. By 1860 industrial drop, sma.11 as it is, reflects ma.inly the in­ creased proportion of pa.rt-time workers in came limited just when women, blacks and workers won the 10-hour day, and the the work force. young people planned to enter the work force movement to reduce worktime continued or increase their level of expectations. By "productivity" I mean workers• average Representative John Conyers, Michigan in full force as soldiers returned from the output in one hour today compared with Civil Wax unable to find jobs. Democrat, has introduced a bill that would such output a.t a. specific time in the past. reduce the standard work week to 35 hours Swings in the business cycle, in partic­ A doubling of productivity would mean over four yea.rs, require double-time wages ular the economic depression of the doubled a.nnua.l output if the level of em­ for overtime and prohibit employers from 1870's and another in the 1890's, re­ ployment and average number of hours requiring overtime work. worked stayed the same. But, if the demand kindled the demand for shorter hours as Hearings on the b111 were held in the the way to combat unemployment. Near for a. pa.rticula.r industry's output were not sufficient, then the increased productivity House F.ducation a.nd Labor Committee late the turn of the century the American would cause loss of jobs or displacement of la.st month. This bill is a. step toward honor­ labor movement embraced as a central workers into other industries. ing our national commitment to full em­ operating principle the idea of spreading ployment, enacted one year a.go in the In 1926, Henry Ford introduced the five­ Humphrey-Hawkins legisla.tion.e work among the greatest number of da.y, 40-hour week. In 1940, the Fair Labor workers so as not to divide those fortun­ Standards Act set a 40-hour week in many ate to find jobs from others, who through of our basic industries. Since then, working no fault of their own, went jobless for hours have been frozen. The time-a.nd-a.-ha.lf extended periods. Samuel Gompers, the premium, originally meant to deter overtime ''AL" TREMBLY, SANTA BARBARA founder of the American Federation of work so that others could find employment, CHIEF OF POLICE, RETIRES Labor, captured the essence of the short­ has failed in that purpose, as the cost of fringe benefits he..s increased relative to er workweek movemenrt when he de­ straight-time wages a.nd paying the premium HON. ROBERT J. LAGOMARSINO clared: "So long as there is one man who has become cheaper than hiring a.nd train­ OF CALIFORNIA seeks employment and cannot find it, ing new employees. For a. time, the 111 effects IN TH~ HOUSE OF REPRESENTATIVFS the hours of labor are too long." of that failure went unnoticed. "Silent fir­ During the Great Depression one of ing" took ca.re of necessary reduction in Wednesday, November 28, 1979 the principal methods for curbing mas­ employment. As much as possible, employers e Mr. LAGOMARSINO. Mr. Speaker, sive unemployment was passage of the tried to avoid laying off superfluous em- service to one's profession is a mark o:t: ployees. Instead, they thinned the ranks by Fair Labor Standards Act of 1938, which abolishing positions that were vacated dedication. If a person also shows excel­ established the 40-hour week, created a through employee turnover, retirement and lence in the performance of his profes­ premium rate for overtime work, and ef­ promotions. That was thought to be a. rela­ sion he finds he has left a record which fectively reduced the standard workweek tively humane way to handle the situation. will stand as his testimonial. Such a man from 48 to 40 hours. Since that time, Unfortunately, a price had to be pa.id, and ls Alfred William Trembly who retired as however, the workweek has remained it was paid by the people who were starting chief of police of Santa Barbara, Calif., virtually the same, despite the huge in­ a. career. With the freeze on hiring, they. on November 1, 1979, after 32 years of creases in productivity in manufactur- faced a. la.ck of job opportunities. Unemploy- service in the field of law enforcement. November 28, 1979 EXTENSIONS OF REMARKS 33985 A native Californian, born in Hunting­ the market place than the availability of a tional Union for the Total Independence ton Park, Al Trembly spent his entire gallon of gas. of Angola, has been trying to free his professional career in California, and re­ There is no reason to believe that the pres­ ent Iranian crisis will cause any shortage, nation from Soviet domination for more ceived his education, including a masters either. Current OPEC production is 32 million than 4 years. To this end, he has led a degree in business administration, in his barrels a day. vigorous and highly successful guerrilla home State. The present international consensus is conflict against Cuba's forces stationed Chief Trembly not only served his that, compared with consumption, there has in Angola. Mr. Savimbi was recently in profession with distinction, he also found been an oversupply of 1 million barrels a day the United States seeking support for his time for civic affairs, including Boy for most of this year. war against Soviet imperialism in Africa, Scouts of America, Easter Seals, and This is on top of stocks held around the but his pleas fell upon the deaf ears of Shriners. The many awards received by world in the enlarged storage capacity built the administration. Not only has the ad­ Chief Trembly attest to his contributions by oil companies and governments since the 1973 Arab boycott and in mothballed fleets ministration refused to supply resources to law enforcement and his concern for of tankers-hired cheaply by oil companies to assist Mr. Savimbi in his fight, but so his fellow man. for storage use but, in the case of the Dept. far as is known, he has been snubbed by Because of this long career of dedica­ of Energy, not counted in figuring the ac­ both the State Department and the Na­ tion to his job, his family, and commu­ curacy of oil company statistics on the tional Security Council. nity, I ask the Members of the House to amount of oil held any given day. The inexplicable character of the Car­ join with me, his many friends, his wife Given today's prices, it is the most ex­ ter administration's foreign policy con­ Beth, and their three children, in extend­ pensive exercise in stockpiling in history. tinues to cause grave damage to our long­ ing congratulations to Chief Alfred Wil­ Washington's latest figures show we have term security interests, and compromise liam Trembly, and to wish him a long been taking less than 500,000 barrels a day the task of any future President to act and happy retirement.• of Iranian oil for some time. This is about 2 per cent of current U.S. petroleum con­ - in support of American interests. I urge sumption and should be easy to replace else­ the President to take a decisive stand in where without resort to the highly expen­ support of the anti-Soviet forces in sive spot market. Africa, reinforced by material assist­ OIL: PANIC VS. PERSPECTIVE Clearly, it is essential for the Energy Dept. ance so that some of the losses of the to prepare its fuel allocation plan for any past decade in Africa can be regained.• HON. BENJAMIN S. ROSENTHAL emergency-and this time, let us hope, it at least puts the fuel where it is needed. OF NEW YORK Clearly, we should switch back to the odd­ IN THE HOUSE OF REPRESENTATIVES even sales days permanently. At the same ANOTHER VIEW OF HENRY Wednesday, November 28, 1979 time, however, let us guard against creating KISSINGER the psychology of shortage which leads e Mr. ROSENTHAL. Mr. Speaker, I straight to higher OPEC demands and higher wish to bring to my colleagues attention consumer prices.e HON. GEORGE E. BROWN, JR. the editorial entitled "Oil: Panic vs. Per­ spective" which appeared in the Friday, OF CALIFORNIA November 9, New York Post. The editorial IN THE HOUSE OF REPRESENTATIVES is cogent and pertinent to the basic WHY AMERICAN FOREIGN POLICY Wednesday, November 28, 1979 energy problem-the psychology of LACKS CREDIBILITY e Mr. BROWN of California. Mr. shortage-which is presently besetting Speaker, the current dispute over former us. Secretary of State Henry Kissinger's role OIL: PANIC Vs. PERSPECTIVE HON. JACK F. KEMP with the deposed Shah of Iran obscures The excesses in Iran are raising anxieties OF NEW YORK about an early return to gas lines and offi­ IN THE HOUSE OF REPRESENTATIVES the more substantial role Kissinger cial quotas and the inevitabiilty of still played in the Vietnam war. Since this higher gasoline prices. Wednesday, November 28, 1979 chapter of U.S. history is undoubtedly This is misleadingly alarmist. It can only • Mr. KEMP. Mr. Speaker, one of the going to be an important one, it is essen­ create the psychology of shortage in which most serious foreign policy defeats for tial that we place the Vietnam war role the speculative spot market for oil becomes the United States in the past decade has of Henry Kissinger in an accurate his­ the highly irresponsible yardstick that pro­ torical perspective. motes still higher OPEC prices. been the unopposed deployment of more The Rotterdam spot' market was reported than 30,000 Cuban troops in a dozen While numerous reviews have been yesterday to be in a state of continuing countries in Africa. The Cuban interven­ written abolllt Kissinger's memoirs, none "chaos" with oil prices surging to $40 a bar­ tion in Africa as the Soviet Foreign Le­ has done as fine a job of putting the rel, and in New York harbor home-heating gion, has received no more than mild ·Vietnam war in context as does the ar- fuel rose four cents to a record 98 cents a censure from the administration. The ticle which follows these remarks. I com­ gallon. largest Cuban military deployment, An­ mend this article to my colleagues: Before another Iranian shortfall develops, gola, is also where the Cuban interven­ [From the Los Angeles Times, Nov. 20, 1979) let us set the record straight on what hap­ pened during the last one earlier this year. tion began, and the point where Amer­ KlsSINGER: A CASE OF STYLE OVER SUBSTANCE Throughout this past summer's gas crunch, ica's retreat in Africa started. HIS CHARM WON HIM FRIENDS, BUT HIS POLICIES then-Energy Secretary James Schlesinger in­ The bold increase in the tempo of WERE FAILURES sisted our oil imports were down 2 million Cuba's military intervention in Africa (By William P!aff) barrels a day because of the Iranian revolu­ since its entry into Angola has resulted In the controversy that has followed pub­ tion. But a CIA analysis has since shown in significant gains for Soviet military licaition of former Secretary of State Henry the Iranian shortfall was more than made power. Cuban intervention in Ethiopia­ Kissinger's memoirs, no one has sa.id wha.t up by other oil-producing nations and that supported by a massive Soviet military one might think obvious, tha.t Henry Kissin­ U.S. imports, in fact, rose above those in ger was, ultimately, a. failure as secretary of 1978. airlift-has permitted the firm establish­ ment of a Communist regime in that state. Hs left Washington with the United A U.S. Treasury study prepared last May­ States weakened, its prestige and authority and still suppressed--concluded that the country. Belatedly, the administration diminished, from what it had been when he Iranian crisis "has not led to any real crude has come to recognize the cumulative took office. The war in Vietnam was lost under shortage in the U.S." costs to American security posed by the his stewardship, as the outcome of policies Finally, the highly respected Congressional advance of Soviet military power in the he conceived or carried out. There were no Research Service predicted last May that, de­ developing world. Recognition of the balancing successes. There were, in fact, cu­ spite the Iranian crisis, oil production over problem is not equivalent to action how­ riously few successes at all. Yet Henry Kis­ the first nine months of this year would be ever. In the state of determined inde­ singer is thought by many to be a. success. the same as in 1978. cision that has become a hallmark of the He is an intelligent malll who knows history The Iranian shortfall did not cause an oil Carter administration, it has bungled an and has ideas. He is ambitious. Clearly, he shortage. What it did do, however, was create oppartunity to take the rhetorical offen­ wanted to be a great secretary of state. In the artificial climate of shortage which is many respects he was a good one. He has wit self-fulfilling in causing gas lines, public sive against Soviet military power in and personal charm. These qualities ma.de panlo and an atmosphere in which the price Africa. him a great favorite of the press. They won of a gallon of gas becomes less important in Mr. Jonas Savimbi, leader of the Na- him the respect of foreign leaders who found 33986 EXTENSIONS OF REMARKS November 28, 1979 him free of that mora.llsm a.nd parochialism of the Nixon Administration's policy on Viet­ security sometimes ignore the fa.ct that the tha.t itoo often characterizes American pollcy­ nam. system provides far more than income pro­ m.a.kers. The problem is simply that his poll­ Kissinger argues that it all would have tection for the elderly. Its range of coverage cies did not work. been different had the liberals not attacked includes survivors' benefits for families The case for Kissinger rests primarily upon him and rallied American opinion to block whose wage earner has died, disability insur­ the settlement he negotiated for the Vietnam reprisals against the North Vietnamese--the ance for injured workers and their families, war (for which he was offered, and accepted, threat of relntervention or of renewed bomb­ and medical care for the aged. Each of the Nobel peace prize), his attempt to negoti­ ing. But the fact that American public opin­ these coverages is an integral part of the ate a Middle Eastern settlement after the ion was bitterly split over the war was the concept of comprehensive "social insurance" 1973 war, the normalization of U.S. relations condition upon which Nixon and Kissinger behind the system: with China, and relations with the Soviet ha.d to base their policy from the start. It was Survivors' benefits: Through social secu­ Union. The last of these unquestionably im­ a. fundamental part of the problem. For the rity a.bout 95 % of all young children and proved during Kissinger's yea.rs in office. United States itself, it was the most impor­ their parents have substantial protection Arms and detente negotiations (the Strategic tant part. Policy that ignored this was irre­ in the event of the wage earnel''s death. Arms Limitation Talks and Helsinki Treaty sponsible policy. The task was not to lose the Under private plans, workers who die a.t an talks) were successful. They began under war in a way that would allow the domestic early age leave their families with a lump another administration, and no doubt would enemies of the Nixon Administration to be sum payment and the money accumulated have gone forward under another secretary blamed; it rather was to rally American opin­ in savings accounts and insurance premiums. of state; in fact they did so under Kissinger. ion behind a policy able to salvage something Unfortunately, the total a.mount available He was also right in warning that Soviet and from the affair better than a squalid defeat to the fa.mmes ls seldom sufficient in cases Cuban interventions in Africa were a dan­ for the United States and its allies. of early death. Social security, on the other gerous new development. The actual Kissinger policy, to abandon hand, provides long-term benefits for fami­ But in Europe, Kissinger grossly overesti­ South Vietnam to its enemies, could have lies in such situations. The benefits may be mated the importance of Eurocommunism been carried out four years earlier, with Cam­ worth hundreds of thousands of dollars, and dangerously misjudged post-revolution­ bodia still intact, and with something like a much more than would be available under ary developments in Portugal. He supported million people alive, including 20,000 Ameri­ most private plans. the Greek colonels to no useful purpose-­ cans who were dead when Kissinger and Nix­ Disability insurance: A young worker who and to America's and NATO's ultimate dis­ on finally left office. The result for Vietnam, begins employment at age 22 and becomes oadvantage. American involvement in the Cambodia. and Laos, could not possibly have disabled at age 30 would have full disability been worse than what actually happened. protection under social security. Monthly overthrow of democratically elected President Henry Kissinger does not offer his mem­ checks would go to support both worker Salvador Allende in Chile worsened relations oirs these days with diffidence. He presents and family for as long as they were needed. with the Third World and laid the ground himself as a success. He projects success. He Without social security, however, the same for current U.S. difficulties in Central Amer­ is ta.ken as a success. He is talked about for worker would be forced to rely on resources ica. Binding U.S. interest and prestige to the high office once again. It ls a striking case of accumulated during eight years of invest­ shah of Iran, a pollcy Kissinger did not invent style over substance. It is an American suc­ ment, an amount unlikely ta provide but continued, was a grave error for which cess story.e support for much time. A private disability the United States now pays the cost. plan would typically pay benefits for a In the Middle East, his dramatic shuttle limited period of time only. About 80% of diplomacy produced no settlement. That SOCIAL SECURITY: A GOOD all people between the ages of 21 a.nd 64 awaited the court of Egypt's President Anwar INVESTMENT a.re insured by social security against income Sadat and the persistence of Jimmy Carter. loss due to dlsa.bllity. The changed American policy towards China Medical care: Since 1965, social security was overdue a.nd constructive. The real credit, taxes have also financed the hospital in­ however, must go to Zhou Enlai and Mao HON. LEE H. HAMILTON OF INDIANA surance element of medicare. Medicare, of Zedong. It was in fact China that "recog­ course, is the program that pays up to 80% nized" the United States as a. means to offset IN THE HOUSE OF REPRESENTATIVES of the reasonable hospital costs of the el­ the threat from the Soviet Union, so that Wednesday, November 28, 1979 derly. This facet of social security removes one foreign "barbarian" could be induced to some of the serious worries that many confront another. e Mr. HAMILTON. Mr. Speaker, I Americans have about their health care ex­ The biggest issue during Kissinger's time would like to insert my Washington penses in retirement years. The protection in Washington was, of course, the war in Report from Wednesday, November 21, of medicare is more reliable than trying to Vietnam. There ls currently a justified con­ 1979, into the CONGRESSIONAL RECORD: save enough for hospital bills in old age. troversy over the Nixon-Kissinger policy to­ SOCIAL SECURITY: A GOOD INVESTMENT Such bills can easily run into the tens of wards Cambodia, prompted by the William thousands of dollars. Shawcross book, "Sideshow: Kissinger, Nixon I am often approached by young people who display a growing doubt that social Depth and variety. of coverage are not the and the Destruction of Cambodia." But even only advantages of social security. Porta­ if that ls put aside, and Vietnam a.lope is security ls a. good investment. A man in his early twenties recently told me that, bility should be counted as well. Under the considered., it is necessary to conclude that system, workers do not leave their rights the pollcy failed. · in his opinion, social security was a "rotten investment" which ought to be scrapped. behind when they move from job to job. When Henry Kissinger became national se­ Such doubts about social security deserve Continuity of individual and family pro­ curity adviser in 1969, the war ha.d been going careful considers.ton and response. When tection is generally provided throughout a. on for four years and more than 30,000 Amer­ responding, proponents of the system should working career. Another major advantage of icans had died. American publlc opinion, make it understood that social security is social security--one often overlooked-is troubled from the start about the wisdom of not without its faults. Most people agree that benefits are not taxed as income. This a. land war in Asia, had shifted against the that it can be improved. My own response exemption from tax has the effect of multi­ war. Richard Nixon had campaigned for the to critics is that social security is a. good buy plying benefits that are already ample by Presidency with the promise to end America's for American workers, but that continuing most standards. Yet another major advan­ role in the war. Hubert Humphrey also said efforts must be ma.de to improve it. tage of social security-perhaps the most that he would end the war, but he was Many of us tend to forget--or if we are important--is that benefits are indexed to blocked from disavowing the past pollcy of younger, never knew-what life for the infiation. Infiation ls the most troublesome the Johnson Administration which, as vice elderly was like in this country before social problem Americans face today, and no peo­ president, had been his own as well. Nixon, security was enacted. Prior to 1935, old a.ge ple have more to fear from lnfiation than faute de mieux, was the peace candidate, and held out for millions of Americans the those living on fixed incomes at a time when he was elected. frightening prospect of destitution or de­ age or disability has diminished the ability What Nixon and Kissinger actually did pendence on charity. The "poor fa.rm" was to earn. As a direct result of indexing pro­ during the next four years was to enlarge the a real place where the elderly suffered deg­ visions now in place in the system, benefi­ war geographically and hand it over to the radation and loss of respect. Social security ciaries know that they will not be forced Vietnamese (and Cambodians, after 1970) to changed that bleak il."eality with a trust to live with ever-eroding monthly payments. win or lose. Since the South Vietnamese in­ fund which generally pays people in retire­ It is possible to find some people whom ability to deal with the Viet Cong and the ment far more than they contribute to the social security does not help. If we take a North Vietnamese had caused the United fund during their working yea.rs. For ex­ hypothetical worker who enters the labor States to enter the war in the first place, this ample, a. 22-year-old man, earning an aver­ force at age 22, never marries or becomes could only end as it did, in defeat. age wage, will pay about $19,550 into the disabled, and does nothing but add to in­ The United States withdrew its forces. The system. He can eventually expect to receive vestments while moving ahead to higher South Vietnamese weakened and eventually benefits totalling more than $27,500. A mar­ levels of income, we may have a person who collapsed under renewed Communist attacks. ried worker would pay the same a.mount might be better off with something other The remaining Americans scrambled for their into the system but would get back more than social security. Not too many persons lives to rooftop helicopters. It was a fiasco. It than $62,000. fit into this category, however, and no one was also the inevitable, predictable, outcome Those who have doubts a.bout social can be certain of always fitting into it. November 28, 1979 EXTENSIONS OF REMARKS 33987 All of these facts make it clear that, for whilst they recognise the dangers, seek solu­ 1980s as being cataclysmic for one reason most people at least, whether they have tions by turning inwards towards tight re­ or another. From H. G. Wells, to George Or­ gotten into the labor force in 1939 or 1979, gional accommodations. well, to Sir John Hackett's current best­ social security is a bargain that is hard to I am not suggesting that these a.re not seller, the forecast has been gloomy. Henry beat. useful or necessary but it is my firm con­ Kissinger believes that "if present trends (This newsletter, the first of two on social viction that the essential basis for the survi­ continue, the 80s will be a period of massive security, is based on a recent speech given val of the Western way of life is the closest crisis for all of us." And, ladies and gentle­ by Patricia R. Harris, the Secretary of cooperation between the U.K. and the U.S. men, the 1980s are now just six weeks away. Health, Education, and Welfare.) e The countries which gave us Magna Carta I believe that the next decade is going to and The Declaration of Independence. I like be the most difficult and dangerous that we to think that today it is the navies of our two have ever faced. I am increasingly apprehen­ Countries that set the right example. I am sive about the severity of the challenges be­ ADM. R. M. BURGOYNE, BRITISH proud to tell you that when our First Sea ing posed by the Soviets and the direction, NAVAL A'ITACHE, DISCUSSES Lord was in Washington last month he said pace and resolve of the West to meet suclCa CHALLENGES OF NAVAL REALI­ that he believed that the links between the threat. TIES, IN SPEECH AT JACKSON­ USN and the RN had never been closer or Defending the Helsinki Treaty to Warsaw more e1Iective. I am sure that had our Am­ Pact Leaders Leonid Brezhnev is reported VILLE'S ANNUAL KING'S DAY bassador been able to be here tonight he to have said in 1974 in Moscow: REGATTA would have said the same of the relationship "By 1985 we will have reached, as a result between our two governments. of detente, most of our objectives in West But it is of the sea and navies that I would Europe. And the decisive shift in the corre­ HON. CHARLES E. BENNETT like to say a little more tonight. It was Sir lation of forces will be such that come 1985 OF FLORIDA Walter Raleigh, another great sailor with we will be able to exert our will wherever we IN THE HOUSE OF REPRESENTATIVF.s the closest ties to early days of your great need to." Country, who said, "He who commands the This is quite a boast, and I want to ex­ Weunesday, November 28, 1979 sea commands the trade of the world. He amine it from a maritime point of view. We • Mr. BENNETT. Mr. Speaker, on Sat­ who commands the trade of the world com­ seafaring nations have enjoyed supremacy of urday evening, November 18, I had the mands the riches of the world, and conse­ the sea for decades: We have been so sure of quently the world itself." our control of the ocean and the airspace pleasure of hearing Britain's Naval At­ Indeed, it was no accident that some thirty R. above it that we have taken it for granted. tache, Adm. M. Burgoyne, make an years ago our Western Defensive Organisa­ The alternative was unthinkable. Our strate­ important and challenging speech at a tion was called after an ocean-the Atlantic gies assume it, our economic policies depend banquet hosted by the Daughters of the Alliance-for in the words of the present on it. The time has come to think the un­ British Empire at the Florida Yacht Club Chairman of the NATO Military Committee, thinkable. in Jacksonville, Fla. The occasion was in "the sea lines of communication from the Look first, if you will, at the Soviet mari­ connection with the festivities of the Americas to Europe are the arteries through time strategy. We are witnessing the inexor­ annual weekend celebration in Jackson­ which our life-giving supplies and reinforce­ able spread of bases, logistic facilities and ville of the King's Day Regatta. The first ments will flow: cut them and we shall be influence around the periphery of the trade starved." routes of the world. From the Kurns to Co­ such regatta was held at the same loca­ Let us not forget, however, that our life tion in the St. Johns River in 1776, be­ nakry to Cuba the picture is the same. giving supplies in peacetime come from all Their strategic nuclear submarine force is fore the Declaration of Independence, over the world: they come from far beyond becoming more modern and more experi­ and when the area was a British colony. the sea areas encompassed by NATO boun­ enced. Their Delta IIIs with missiles of some The admiral's thought-provoking com­ daries. They can be threatened, they can be 5000 NM range are replacing the shorter ments were: harassed, they can be squeezed, they can be range Yankees, and a larger class, the Ty­ cut by anyone who has the capab111ty to phoon, is expected at sea next year. Of the veritable host of real pleasures and utilise the total fiexib111ty inherent in sea great privileges that happily come the way Their nuclear attack submarines have long power and who is not constrained by lines posed a major threat to us and now we of the Commander of the British Navy Sta1I drawn on a map. and Naval Attache in your great nation's see the introduction of the highly auto­ And it is about that freedom of the seas mated Alpha Class. This boat represents a capital, none gives me greater pleasure than that I wish to talk tonight. the opportunities it a1Iords me to sail forth technological achievement not yet matched I know that over the past few years the by the West--we have nothing that goes as occasionally from that 'island' into the reali­ attention of government and public has ties of your fabulous land-for it has been fast or so deep. been drawn to the steady and relentless The Soviets are currently building nuclear my great good fortune to visit from Maine to build-up in Soviet o1Iensive mmtary power. California and from Hawaii to Florida and to submarines at the rate of one every seven everywhere find living proof of the strong And although this concern has been echoed weeks, and the number of these will double and binding ties that unite our two great by numerous civilian authorities, we in uni­ within ten years. countries in a common cause. form are still regarded in some circles as Moreover the Soviet surface fleet is giv­ I am delighted by the great honour you do being alarmists-hawks-call us what you ing us much cause for concern also. me by inviting me to be your guest for this will-but people who exaggerate and always They are building a new generation of sur­ fine King's Day Regatta and also the great ask for more. face ships, with much greater displacement, honour you do my Country by the naming But I believe that there is very real cause much greater endurance and weapons sys­ of your Regatta. for concern and this evening I shall be at­ tems which are so potent as to be of grave L::i.dies and gentlemen, you will not need tempting to focus your attention of the concern to the West. me to remind you tonight that the very close west's dependence on the free use of the One of them now under construction, is ties between Great Britain and Florida go trade routes of the world and the Soviet nuclear powered, and is very large indeed­ back to the earliest days of the development maritime threat as we enter into the 80s. over 30,000 tons. She carries new missile sys­ of this great State. Sir John Hawkins was For I and many of you will vividly remem­ tems, heavy guns and helicopters. The first here in 1565. In these present days of great ber the 30s and the lone voices crying in the is expected to be at sea in 1980--and we . verbosity and voluminous bureaucracy I was wilderness as they vainly warned the sleeping believe a second will follow in two or three delighted to find that Sir John's standing world that Hitler's Germany was on the years. orders were contained in one sentence "serve march. We never seem to learn from history, The Kresta II is as formidable as any God daily, love one another, preserve your and despite Henry Ford-history is not bunk. ship of its class in the NATO navies-but its victuals, beware of fire and keep good com­ But there is none so deaf as he that will successor is already on the stocks: it is the pany". He would, I am sure, have approved not hear. same story with the Kara Class, the first of the way in which we are honouring at I believe that if the Soviet Union continues replacement being operational in 1982. lea.st two of his precepts tonight. Which two to spend as much as she has done on a.rma­ As a result of this relentless shipbuilding I will leave you to judge. men ts-and the West continues to show the programme by the latter half of the 80s the I am equally sure that this great English same reluctance as now to make significant Soviets could deploy four powerful task seaman would be highly pleased by the close increases-then the military consequences groups each containing a Kiev type Aircraft and warm association and friendship that must be certain. The only uncertainty would Carrier and accompanied by a combination exists today between the United States and be for how long our current strategy of de­ of these new and sophisticated cruisers. the United Kingdom. To say that we live terrence would remain credible--not just to So we see emerging from Soviet shipyards, in an increasingly hostile world and the the other side but to ourselves. a. deep water Navy, designed for sea control West appears myopically hell bent on bury­ If present m1litary trends continue, a day rather than sea denial. It has sophisticated ing its head in the warm and comforting of reckoning must surely arr:ive. To me its underway logistic support and increasing ac­ sand of a latter day Munich syndrome is outlines are coming into sharper focus and cess to overseas bases. It poses a substantial bland and certainly not brilliant or original. military men would be failing in their duty and credible open-ocean surface threat to the They are however, facts of current life and were they not to express the deepest concern. trade routes not only in the North Atlantic it is equally a fact that there are those who, For yea.rs now, writers have dwelt on the but also in the other oceans of the world. 33988 EXTENSIONS OF REMARKS November 28, 1979 Just imagine what one or two of these ducing number of maritime forces available WALDORF, MD., JAYCEES NAMED battlegroups could do or threaten to do to to the major NATO Commanders. "BEST IN WORLD" our oil supplies if they were at large off the The growing imbalance of maritime power Cape of Good Hope. Imagine what they could must surely-in time--offer the other side­ do to the supply of other vital raw mate­ by default-the option of bringing the West HON. ROBERT E. BAUMAN rials--bauxite, manganese, sugar, if they were to heel without a direct act of war-simply free to roam the Caribbean. Imagine what by applying pressures upon the weak links of OF MARYLAND they could do to the supply of raw rubber, our lifelines. IN THE HOUSE OF REPRESENTATIVES of tin--or other strategic minerals if they But what if Russia accelerates her im­ Wednesday, November 28, 1979 were in the Pacific. perialistic and aggressive policies: what if The materials I have mentioned, ladies and we enter a period of rising tension without • Mr. BAUMAN. Mr. Speaker, as a for­ gentlemen, are essential for many of our the sea control we have enjoyed since the mer member of the Jaycees myself, I countries. But they are particularly impor­ end of World War II? had the honor of announcing a signal tant to the United States, which is the What then are our options? power house of our alliance. In June 1977, the NATO Council recog­ achievement of the Waldorf, Md., Jay­ The U.S. imports more than 75 % of her nizing this increased threat and the impor­ cees several weeks ago, when I informed twelve most needed minerals. More than half tance of our maritime lifelines, agreed that this Congress of their election to "best of the eighteen most needed and a third of "there was an urgent need for the Alliance in Nation" status. That achievement, the twenty-seven most needed. to improve its capability rapidly to rein­ I am pleased to tell you, has been It is perfectly true that Admiral Alfred force and augment allied forces In the for­ eclipsed by one even higher. Two weeks Mahan considered the prime purpose of na­ ward areas in the early stages of a crisis." ago, the Greater Waldorf Jaycees, Inc., vies to be the protection of commerce but This is the foundation of our conventional of Charles County, Md., were named the today I believe a further dimension has been deterrent strategy. NATO must possess the added. capability to reinforce before hostilities. No. 1 Jaycees chapter in the world by The realisation that the sea bed is a source It is this capability-which NATO is now the international Jaycees organization of scarce food, energy and raw materials has actively acquiring-which contributes to the meeting in Europe. given a renewed impetus to the importance deterrent. The Council sees rapid reinforce­ The work that this chapter has of sea power. This has not been lost on Ad­ ment in whole or in part as a demonstration done, including their extensive work miral Gorshkov who has been at the helm of firmness, and in no way excalatory. with cardiopulmonary resuscitation and of the Soviet Navy for twenty-five years. Our leaders have first to recognize the numerous local community and govern­ Gorshkov said, "the constantly growing signs of increasing tension: then they must maritime might of our Country ensures our take the decision to reinforce. This may well ment projects, is eloquent testimony to ability to enlarge our exploitation of the have to be taken outside the timescale of their latest honor. Once again, I must colossal natural resources of the world's what is generally taken as military warning express my pride and admiration for this ocean," and we may yet see international time, that is a minimum of forty-eight hours all-too-rare example of local peoples' crises over the vast reserves in oceans which stretching to perhaps a week or two. concern for their community. I applaud belong to everyone, this common heritage of The decision may have to be made before the Waldorf Jaycees for their excellence, mankind, but a heritage which only a few there are any clear military indications that and I offer for inclusion in the RECORD have the technique to exploit. the enemy is preparing to attack, and our In addition to the direct military threat, political leaders may have to rely only on two accounts, from the Times-Crescent there is the rapidly growing Soviet Merchant their interpretation of political, econornic and the Maryland Independent, which Fleet. In two decades, the Soviet Union has and social indicators. describe the reaction of Charles Coun­ moved from relative obscurity to the front I submit then that when the NATO Coun­ tians to this impressive news. ranks of maritime commerce. She has, next cil accepted the concept of rapid reinforce­ The articles follow: to Greece, the largest fleet of general cargo ment they also introduced a new dimension [From the Times-Crescent, Nov. 14, 1979) vessels in the world and her construction into NATO decision making. plans for the next five years particularly in In so doing they embarked on a policy de­ WALDORF JAYCEES VOTED TOP CHAPTER IN THE the fields of container and roll on/ roll off signed to ensure that the Soviet hierarchy WORLD ships are impressive to say the least. would perceive that the leaders of the Alli­ The Greater Waldorf Jaycees Inc. were The growing fleet together with the ance have the political resolve to reinforce named the number one Jaycee chapter in world's largest fishing and oceanographic Europe in a timely fashion thus adding im­ the world this week. fleets form a valuable instrument of national measurably to deterrence, but I need hardly Not in the state, not in the country, but policy and being under military control they stress the danger to the West if Moscow per­ in the world. pose an ever present threat. ceives a weakness in leadership, a public "I still don't know what has happened," Now, I believe there exists in certain indifference, a paralysis of will. said Jaycee president Andy Andrews. "I'm circles a tendency to underrate the ability But I must warn that a rapid reinforce­ calling all over the country trying to see if of the expanding Soviet Navy in terms of ment capability is only credible and hence its really true." sea and airmanship; they are catching up deterring, if one has sufficient maritime as­ sets for the protection of the air and sea-lift. Brad Trafton, national awards chairman fa.st and the fact remains that it is the Soviet for the U.S. Jaycees in Tulsa, Okla., said Navy, and not the Western navies that ex­ It is the other side that has the luxury of planning and deciding the commencement of that, yes, the Waldorf Jaycees had been ercise mainly in a realistic electronic war­ chosen top chapter in the world at the in­ fare environment and frequently operate hostilities. Before I close may I briefly summarize ternational convention in Sweden, but that under simulated nuclear, biological and little other information was available. chemical warfare conditions. what I have been trying to say: The sea has been our lifeblood in the past: Trafton explained that the convention In sum the Soviets with an avowed policy culminates with the naming of the top of world domination a.re creating a maritime we will have to depend on it more in the future, not less. chapter and that most attendees left im­ capability which will assist this achieve­ mediately for a one-week tour of Europe. ment. They have gone to sea-they have be­ Since World War II our control of the sea come sea.minded-they are challenging us for has never been threatened or challenged. It There are approximately 15,000 Jaycee world wide sea control. NATO, on the other is being so now. chapters from 86 different countries accord­ hand, remains in a straitjacket, focusing · And so, ladies and gentlemen, in all your ing to Trafton. He said he was not sure how only on a small geographical a.rea. future deliberations and wherever you can often the U.S. entry has won. bring ~our influence to bear I ask but one The Russians will be able to project their "Let's put it this way, the second place thing- winner in the international competition is foreign policies---supported by considerable Keep looking to the sea around you. muscle-to all four corners of the world and considered a supreme honor," Trafton said. I would like to end with quotations from "This is indescribable." history teaches that those countries which a great Englishman and from a great Amer­ have strong navies become rich and power­ ican. They reflect the closeness of our com­ Jaycee Dick Gregory said the Waldorf ful. Those which neglect their navies can mon cause and our common dependence on chapter had never entered international never be great. the sea. Words as true today as they were competition but said that winning top chap­ Against the backcloth that it is the West when first spoken some two hundred years ter in the nation spurred them to give it who are dependent on the sea routes of the ago-not long before and not long after the a try. world and not the Soviet Union, I find our first King's Day Regatta: Gregory said that their "book" of achieve­ alliance entering the dangerous 80s encum­ The Marquess of Halifax said, "to the ments for the year consisted of nine six­ bered by maritime shackles while trying to question: what shall we do to be saved in inch thick volumes but that they were combat a threat which has not only immeas­ this world, there is no answer but this-look limited to 40 pages for the international com­ urably increased but has become global. to your moat." petition. At the same time I see the navies of the al­ And in the words of George Washington: No Waldorf member was in Stockholm for liance beset with manpower and mainte­ "without a decisive naval force we can do the judging. nance problems, I hear talk of cuts in na­ nothing definitive and with it everything Official presentation of the trophy is set tional shipbuilding plans and I foresee a re- honorable and glorious." e for January in Tulsa. November 28, 1979 EXTENSIONS OF REMARKS 33989 The only negative point brought out is now need most-economic and Political itary expenditures-that they create that now they will have to amend the ban­ security. jobs and are good for the economy-is ner at their headquarters and the bumper Once again we have made a decision really true. If it were, how could we now stickers, crossing out "nation" and insert­ be caught in the stagflation trap? Stag­ ing "world." that seems politically easy and popular without asking ourselves the hard ques­ flation is the exact opposite of what we [From the Maryland Independent, tion of whether the price that we are pay­ are supposed to have, now that the true Nov. 14, 1979] ing equals the return on our investment. figures have come out showing that real WALDORF JAYCEES: BEST IN THE WORLD My conscience tells me that we have military spending has increased over the (By Marian Myles) duped the American people into playing past 30 years. But we still say "more, At an International Jaycee Conference held the "more for the military is better more, more for the military," while last week in Sweden, the Greater Waldorf game" without telling them what some taking pot-shots atthe social programs. Jaycees were voted the World's Outstanding of the rules are. We have cre·ated a Soviet If the "military means jobs" folks were Jaycee Chapter, topping 14,000 local units. monster that we are going to overPower correct, how could we now find ourselves News of the event, called the highest honor by spending more money for new weapons in this me.ss? The answer is twofold. a chapter may attain in the world-wide Jay­ and more sophisticated technology. What First, one billion dollars spent for defense cee movement, reached Waldorf Jaycees Pres­ we have not dealt with is the U.S. mon­ ident Andy Andrews at his home Friday creates fewer jobs than one billion dol­ night, when one of the U.S. vice-presidents ster that is going to overpower us witlt lars spent in some other sector of the telephoned from Stockholm. runaway inflation and increased unem­ society. Plug one billion dollars into the "I was so excited I never did get his name," ployment. What is worse is that we have military and you get 58,000 jobs. Plug Andrews said. not admitted that the more we pump one billion dollars into education and you With the clarity of hindsight, the chapter into the military, the bigger the inflation get 76,000 jobs; into health and you get president said he wished that a representa­ and unemployment problems become. 85,000 jobs; and into the Job Corps and tive of the local group had been present at I recently came across some startling you get 145,000 jobs. So the more money the International Conference to receive the new facts about the priorities that we you spend on defense, the more jobs you honor. have established in this world. For ex­ are foregoing in some other sector of "When we entered the competition we ample: In pounds per person, the world society. The real increase in military talked about sending someone but when we has more explosive power than food. Also, looked at the economics we decided against spending that we have voted for has it," Andrews said. in the Year of the Child, 8 million chil­ meant more unemployment than if we The Greater Waldorf Jaycees, voted this dren in the world will die as a result of had invested those moneys into another year as the United State's outstanding chap­ hunger and illnesses related to malnutri­ sector of the economy. ter, competed against units from 86 countries tion. Right now, developing nations, with Secondly, inflation is also linked to the for the international award. 660 million people who cannot afford the bloated military budget. Military spend­ The chapter president said a 40-page basic necessities of life, spend over $90 ing is one of the most inflationary forms scrapbook outlining their major activities billion a year on military power. of Federal spending. The goods and serv­ was prepared in accordance with rules of The United States has led this prolifer­ ices that come off the military production the competition. Contained in the summary ation of misguided priorities by exporting are accounts of their numerous projects in­ line sit on the shelf and collect dust-­ volving senior citizens, such as home repair, $50,265 million worth of arms to under­ they do not add to the collective wealth food drives, holiday parties, food baskets and developed countries since 1955. That is of society. On the other hand, money al­ hearing aids and their volunteerlsm at the more than twice what the Soviet Union located to nonmilitary projects produce Charles County nursing home. has exported. Yet the rationale given for spinoffs which ripple throughout the They've participated in a five-year build­ more and more money for the military economy. For example, agricultural as­ ing program at Melwood Fa.rm, a. training has historically been that the Soviet mil­ sistance helps a farmer to grow his crops, fa.c111ty for the ha.ndica.pped, regularly spon­ itary monster is getting bigger and exert­ provides jobs for agricultural middle­ sor the Health and Safety Fair, CPR training ing its strong-arm influence in the Third men and keeps the grocery stores in busi­ sessions, the Junior Miss and Special Olym­ World and is trying to undermine the ness. It is when an industry, such as the pics programs. During the recent Muscular values of freedom and democracy. I would Dystrophy telethon, the local chapter raised military-whose end products go no­ almost a third of the total $33,000 pledged in say that, when you look at the facts, they where in society-overshadows other Maryland. reveal exactly the opposite-that we have segments of the economy, that the Gov­ There are unpublicized activities such as been exporting so many arms to Third ernment has to spend more to get more allocation of funds to help children a.nd World countries to undermine the values and the Federal deficit becomes larger youth which a.re passed out as individual of communism, that we are way ahead and larger. grants. of the Soviets on the "who's undermining We have created our own productivity­ Brad Trafton of the U.S. Jaycees head­ whom" s::ale. But this side of the argu­ infiation-unemployment crisis by the quarters in Tulsa, Okla.. told The Maryland ment has never been heard over the amount of money we continually appro­ Independent that the local chapter wlll re­ screams of Soviets in CUba and Com­ priate to the military. Now we are will­ ceive the award, called the Minneapolis munist troops in Angola and other parts Trophy, in January when a conference to ing to subject Americans to more of name the U.S. Outstanding Young Men of of Africa. What about our support of the the same by pulling in the reins on so­ the United States will be held.e repressive regimes of Somoza? And what cial programs and loosening the belts about our active support for the human of the military. I am not willing to let rights violators of South Korea? What Americans pay for our mistakes. I voted about our confessed overthrow of Chile's against the second budget resolution. It AN EVEN MORE BLOATED MILITARY Allende government by the CIA? In is based on all the wrong premises and BUDGET spite of all this, we still hand over 46 percent of the taxpayer's hard-earned it heralds all the wrong causes. I hope money to the military-and more next my colleagues will soon join me in bring­ HON. PATRICIA SCHROEDER year because of the "growing Communist ing clarity and direction to the mush we call our economy and our values.• OF COLORADO threat." What kind of a con game are we IN THE HOUSE OF REPRESENTATIVES running on the American people? Wednesday, November 28, 1979 Economists all over this country are IRANIAN SITUATION PART IV; trying hard to figure out how we have AMERICA'S YOUTH SPEAK OUT • Mrs. SCHROEDER. Mr. Speaker, once gotten ourselves into the economic mess again we have succumbed to the anti­ we now find ourselves in. Many have communist hysteria that has prevailed made the stunning connection between HON. JOHN M. ASHBROOK throughout the SALT debate. By accept­ OF OHIO our bigger and bigger economic commit­ ing an even more bloated military budg­ IN THE HOUSE OF REPRESENTATIVES et, we have fooled ourselves into believing ment to the military and rising inflation that we are doing something for the de­ and unemployment. These economists Wednesday, November 28, 1979 fense of this Nation and have cheated have asked themselves if the premise e Mr. ASHBROOK. Mr. Speaker, No­ the American people out of what they upon which we have always based mil- vember 21, the day before Thanksgiving, CXXV--2137-Part 26 33990 EXTENSIONS OF REMARKS November 28, 1979 saw a dedicated group of young people test in support of the barbarous a.ctivitie3 and other cancers, also should be granted put holiday preparations aside in order now taking place in Iran against American service connection for their disabilities. to take a :firm stand on the growing citizens. Let it be clear tha.t the National I had known Donald, his deceased Student Association and the United States father and his mother for many years. crisis in Iran. This group was significant Student Association, which have recently as it represented conservatives, liberals, entered into a lawsuit against the govern­ When his case was brought to my at­ socialists, Democrats, and Republicans. ment's attempts to deport illegal Iranian tention, he had been given 6 months to The young people, led by Robert Heck­ a.liens, a.re a.n anachronism of the 1960's. The live. Today, after successful treatment man of Young Americans for Freedom, real voice of Americas' college students and through Vanderbilt University Hospital, met with Ali A. Agah, the charge other young people cries out for a. strong he remains with his family in Monroe d'affaires for Iran, and Sasan Ardalan, American response to the Iranian crisis-a County. the information officer. Their message response which includes the deportation of I include for the RECORD an article those who have waived their right to enjoy from the November 23 Courier-Journal was a simple one, the youth of America the benefits of freedom which they find in refute the use of terrorism in Iran and this country, ,but which a.re absent now more detailing Coe's happiness at this Thanks­ call for the unconditional release of the than ever in their native homeland. giving with his family; I trust that he hostages in the name of international There has been an outpouring of patriot­ will have many more. law. At a time when the Carter adminis­ ism by American college students over the The article follows: tration seems dead in the water and last few weeks. No longer a.re young people A MODEST BLESSING when the ayatollah is thumping his chest protesting our nation's strengths; we a.re VETERAN GIVES THANKS FOR A WALK ON HIS in defiance of America, it is reassuring to deploring its weaknesses. There is a. new FARM wave of responsible patriotism on the cam­ (By Bill Osinski) know that a group of young people rep­ puses today-heightened by the Iranian resenting many thousands of other crisis, but which will continue long after our TURKEY NECK BEND, KY.-Dona.ld Coe had young people are willing to go on record present situation is resolved. a lot to be thankful for yesterday: He could for America. I submit their statement Some of the organizations represented here walk through the soybean fields below his into the RECORD as one sign that may organized or participated in many of the own home. yet be hope for the future generations recent demonstrations against the govern­ If a. stroll through a. piece of Cumberland of U.S. citizens: ment of Iran. We will continue to mobilize River bottomland seems a. modest blessing, young people in any constructive manner. consider what Coe went through to earn it. THE IRANIAN SITUATION PART IV, AMERICA'S Thousands of young people are represented He had to ride in an open helicopter YOUTH SPEAK OUT directly by the organizations present today. through a.n atomic-bomb cloud 1:1.nd battle (Joint statement of: Robert c. Heckman, Many thousands more share our convictions. the U.S. Army and an incurable disease at executive director, Young Americans for Let there be no mistake a.bout one point: the same time. Freedom; Bernie Friedman, president, Col­ American young people a.re just as com­ He enjoys his walk. lege Democrats of America.; Rosann Gar­ mitted to their country as those radical "That means everything to me, walking ber, executive director, Young Republican Iranians who have engaged in violence a.round this farm," Coe said of his Monroe National Federation; Chris Mueller, na­ against the United States are committed to County acreage. "I love to see things grow, tional chairman, Young Socia.I Democrats; theirs. America's young people will respond be out with my boys." Ken Simon, president, United States to attacks upon our country in any accept­ On this Thanksgiving Day, Coe, 47, was able to savor victories in battles that no one Youth Council;• Ted McConnell, execu­ able manner. If Ira.n's youth desire to spear­ tive director, College Republicans; Jessica. head activities against the United States, but him expected he would live to finish. Smith, executive director, Frontla.sh) In 1957, Coe was part of a group of soldiers America's young people will respond. We who were stretched out on the sands of Those of us gathered before the Iranian have no more patience with outlaws. Embassy today represent a. broad spectrum Yucca Fla.ts, Nev., when the Army detonated For further information, please contact: a bomb named Big Smokey. of America's youth. While the organization Rick La.Mountain, Young Americans for on whose behalf we a.re speaking often differ The atomic device was twice as powerful Freedom, Woodland Roa.d, Sterling, Va. as the one dropped on Hiroshima. While the on matters of politics, we a.re united in our 22170-703/ 450-5162 .• moral revulsion a.t the events ta.king place deadly mushroom still hung in the air, Coe's today in Iran. squadron was fl.own in a helicopter to the rI'he orga.niza.tlons here assembled repre­ blast area for drills. sent the real voice of the youth of America.. Coe experienced health problems from the All America:ns-but especially young people A MODEST BLESSING blast, one of eight his group witnessed while who will very soon be inheriting the mantle it wa.s stationed on the desert. By 1976, he of leadership in the United States-will no was diagnosed as having "haJiry cell" leuke­ longer stand for the burning of the Ameri­ HON. TIM LEE CARTER mia.. can fia.g overseas. We will no longer stand OF KENTUCKY For the next two years, Coe ha.d to battle the Army bureaucracy while he also fought for international bla.ckma.11 a.gs.inst the IN THE HOUSE OF REPRESENTATIVES greatest nation on Earth by less civilized for his life. He ha.d to prove that he had been countries. Never again must U.S. respect in Wednesday, November 28, 1979 at Yucca. Flats and then dissuade Veterans Administration physicians who testified that the world be so low as to permit a foreign e Mr. CARTER. Mr. Speaker, in April dicta.tor to hold Americans and American his condition was not caused by radiation property a.s hostage. It is time that once 1977, a constituent came to me with a exposure. a.gain all Americans and their belongings problem he had obtaining service-con­ Last year, after much publicity and the a.re protected by our government everywhere nected compensation. intervention of U.S. Rep. Tim Lee Carter, in the world. That veteran was Donald Coe, of Tur­ R-5th District, the Army reversed its position Those leaders in Iran who think that their and granted Coe's appeal for medical dis­ key Neck Bend, in my home county who a.bil'ity benefits. illegal activities against the United States was present at the detonation of several will be supported by America's college stu­ Besides the continuing payments, Coe was atomic blasts in Nevada in 1957 and who awarded about $13,000 in back disability pay dents a.re wrong. This ls not the 1960's. from the time his illness wa.s diagnosed. Young people want to inherit a. strong and developed hairy-cell leukemia as a result 20 years later. The struggle to obtain the For this holiday season, Coe has also been respected America., not a weak and helpless granted-from a Higher Authority-enough giant. benefits to which Donald Coe was en­ health to enjoy his winnings. The organizations represented here today titled resulted ultimately in hearings by His family of eight children has moved into pray for the safe return of all Americans our Health and Environment Subcom­ a new brick home on the 123-a.cre farm that held hostage in Iran. We urge all young men mittee, which in turn prompted a con­ Coe worked during much of his life. Until the and women to remain calm and not to do tinuing national effort to find out what extra money came in, the Coes had lived anything provocative which could further has happened to veterans such as Donald mostly in rented horn.es nearby. complicate the difficult decisions in this There is a. combine in the fields, some new crisis which our government must make. and to secure for them the compensation furniiture in the house, and a pool table in However, we call upon all Americans to con­ to which they are entitled. the basement. There is also a new addition tinue to express their vocal outrage a.t the The Board of Veterans Appeals, in to the family, four-month-old Jesse Coe. unprecedented actions ta.ken against Amer­ August last year, granted Donald serv­ When 15 or so people started in on the two ican citizens by the dicta.tor in Iran. ice connection. It was extremely gratify­ turkeys that Joan Coe prepared for Thanks­ We would like to make clear publicly that giving, Coe must have refiected that the set­ American college students strongly support ing that Donald was able to obtain the ting represented the attainment of the goa.ls any actions aimed at deporting Iranian stu­ benefits to which he was entitled, and I he fought hardest for. dents now studying in this country who pro- believe that other veterans who also were "All I wa.s living for wa.s to see my new exposed to radiation at the nuclear tests, home and have my disability approved," Coe *For identification purposes only. and who develop leukemias, lymphomas, said. November 28, 1979 EXTENSIONS OF REMARKS 33991

The view from his table is so pleasant. he Mrs. Coe said that was the time she BRIDGE-NAMING HONORS POLISH-AMERICAN said, that he might just stay around for as thought she was about to lose her husband. SoLDIERS ma.n.y more sea.sons as he can. "He was so gray in the hospital," she said. WEBSTER.-The Route 52 bridge over "I'm wanting to live as long as I can to be Coe said he prepared himself for the prospect Thompson Road was dedicated as the Polish­ with my family," he said. "I said I was going of not surviving the ordeal, but with the American Veterans Bridge yesterday. More to, and now I'm not going to give it up. If I'd aid of a transfusion of blood platelets from than 200 persons attended the program, de­ given up, I wouldn't be here now." his son, he made it. spite constant, sometime heavy, rains. Good health, though, is a relative term for Now he can walk with that son and his Several speakers participated in the exer­ Donald Coe. others, through his own fields below his own cises, including state Rep. Richard T. Moore, "I have my good days and my bad days," he home. And he can feel secure in the knowl­ D-Uxbridge. said. On a good day, walking and playing pool edge that his children will be provided for Moore said exercises not only honored but are the most strenuous activities he can when he is no longer there. celebrated the "special contribution to the handle, he said. Even if the ability to walk through a soy­ cause of liberty made by Americans of Polish On bad days, which come randomly, he can bean field may not seem a grand blessing, it get paralyzing leg cramps that sometimes end descent. Polish-Americans have made signifi­ is all that Coe wanted on this Thanksgiving. cant contributions to the social, cultural and in seizure and collapse. "I'd be a fool to ask for more," he said.e But always, there is a danger that a minor historic traditions of America." infection or a small bruise could escalate Moore said: "Today we take cognizance of into a life-threatening problem, he said. the fact that not only have Polish-Americans Since leukemia is a disease of the immunity contributed greatly to national development, system, Coe's biggest danger is his decreased BRIDGE NAMED IN HONOR OF they have also been among the first Ameri­ ability to fight off injury or infection. POLISH-AMERICANS cans to rally to the defense of America when Lately, though, the good days have out­ this nation faced difficult moments in its numbered the bad. history." The drug lithium has apparently helped HON. EDWARD P. BOLAND Kosciuszko and Pulaski joined in the stimulate the formation of white corpuscles, OF MASSACHUSETTS American War of Independence, Moore said. the body's disease-fighting entities, he said. IN THE HOUSE OF REPRESENTATIVES "They are, in fact, the first Polish-American As a result, he can do a little more, and veterans who we honor today through the he has gained some weight. His biweekly Wednesday, November 28, 1979 dedication of this bridge." visits to a hospital in Nashville, Tenn., were e Mr. BOLAND. Mr. Speaker, on Vet­ Continuing, he added: "We also honor recently reduced to monthly or bimonthly. many Polish-American veterans by our dedi­ "I feel better now than I did all summer," erans Day, 1979, a bridge in my district was named in honor of the Polish-Amer­ catory ceremonies." Moore said 40,000 of the he said. "But I don't know whether that's first 100,000 volunteers at the outbreak of a good sign or not." ican Veterans of Massachusetts. The World War I were Polish although the Polish Coe's ordeal began, he said, when Army bridge serves as a monument to the con­ population of the United States did not ex­ superiors said he was selected to join a group tributions and sacrdfices made by Polish­ ceed four percent at that time." that would pitch tents on the Yucca Flats Americans since the birth of our Nation. Moore presented copies of House Bill 5973, desert near the atomic-bomb blasts. He was I am pleased to IJ:>ring to my colleagues' chosen, the superiors said, because he was now Chapter 246 of the acts of 1979, which among the few who had received top-secret aJttention the dedicatory remarks of authorized the naming of "The Polish-Amer­ clearance. Representative Richard T. Moore of the rican Veterans Bridge." Coe said he came to doubt the need for Massachusetts Legislature: Representatives of most of the Polish­ such clearance when he arrived at the desert Reverend Clergy, Polish-American Vet­ American Veterans posts in the state at­ blast area and saw dozens of reporters. erans, Ladies and Gentlemen: On this Vet­ tended the ceremonles.e In all, Coe's unit hit the sands while eight erans' Day, 1979, we pa.use to honor the A-bombs were detonated. He can still recall courage and the great sacrifice of so many them. Americans throughout our more than two When the bombs went off, the men were hundred yeair existence as a. nation .as they A CASE FOR DECONTROL stretched out face-down on the sand, with fought to preserve our nationa..l liberty am..d their arms covering their faces, he said. That democratic tradition and to defend the lib­ position made it difficult for the radiation erty of other nations a.round the world. More HON. WILLIAM E. DANN'EMEYER counters they wore on their chest to do their than this, however, we gather at this bridge OF CALIFORNIA job, Coe said. not only to honor, 1but to celebr:ate the spe­ "The blast was like a big bright light cial contribution to t.lhe cause Of liberty IN THE HOUSE OF REPRESENTATIVES flashing in your eyes," he said, "and when made by Americans Of Polish descent. Wednesday, November 28, 1979 the heat wave hit, it felt like something real Polish-Ameri<:ans have made significant hot sticking to your shirt." contributions to the social, cultural, and e Mr. DANNEMEYER. Mr. Speaker, I For the biggest of the detonations, Coe historic traditions of America. Countless ex­ rise to address my fellow members on the said, his group was among those that went amples oan be cited of Polish-Americans w'ho subject of decontrol of crude oil prices. closest to the bomb crater. have achieved prominence in the fields of There are a great number of myths sur­ "We flew through the mushroom cloud music, science, government, engineering, rounding this subject, and I have come right after the blast. We threw hand gre­ theater, sports, and every other field of en­ nades into the old buildings they had set up deavor. They have truly made a substantial upon an article by Arthur B. Laffer and and kicked the dummies they had lying impact on the institutions and the social Charles W. Kadlec, in Energy Manage­ around," he said. fabric of Amerioa-"America the Beautiful" ment, fall 1979, that clears up many mis­ On their return from the bomb site, some as Pope John Paul II put it during his recent conceptions held by some. These men of the men had to be isolated because their visit here. make a strong case that the immediate clothes had been heavily contaminated with Today, we dedicate this bridge to stand as decontrol of crude oil prices will not radiation, he said. The rest were passed a memorial to the Polish-American veterans result in the sharp rise in petroleum through after being quickly checked by a of Massachusetts. And just as this bridge technician with a geiger counter, he said. product prices predicted by many, but serves as a firm !ound.a.tion supporting the will have no appreciable effect on prices. His worst symptom at that time was a many Americans who safely travel over its minor radiation infection, he said. Years span, so too have the Polish-American vet­ They go on to make the point that im­ later, he was diagnosed as having a deterio­ erans of Massachusetts provided a firm foun­ mediate decontrol will result in signifi­ rating backbone, but Army officials main­ dation for the support Of America through­ cant increases in domestic production of tained that the condition must have come out its history. It is a fitting memorial, and crude oil that could help alleviate pres­ from an injury he suffered. Coe said he can't as the jprincipal legislative sponsor of House ent shortages. I think that we all must remember injuring his spine. B111 5973, now Chapter 246 of the Acts of 1979 reconsider this matter in light of the Coe was discharged in the mid-1960s. He which authorized tihe naming of this struc­ renewed problems with foreign oil sup­ returned to his Monroe County farm. ture "The Polish-American Veterans Bridge," I am honored to join with you to officially plies exemplified by the Iranian crisis. But his physical capacity continued to dedicate your bridge. May it be as strong I commend the following article, re­ diminish, and by the time he launched his and enduring as the loyalty, patriotic pride, fight for service-connected disability bene­ printed here in its entirety, to your and self sacrifice of the men a.nd women thoughtful attention: fits, he said, about all he could do was lie whose name it proudly bears-the Polish­ on his front porch. America.n Veterans of Massachusetts." A CASE FOR IMMEDIATE DECONTROL At the height of his battle with the Army, (By Arthur B. Laffer and Charles W. Kadlec) Coe's physical condition was at its worst. In The following article appeared in the The widely anticipated inflationary effects March 1978 surgeons removed his spleen Worcester Telegram of November 12, of the announced program to decontrol after it had enlarged to 11 pounds and 15 1979, recounting the events at this dedi­ crude oil prices is unfounded. The lifting ounces, he said. cation ceremony: of price controls from crude oil produced in 33992 EXTENSIONS OF REMARKS November 28, 1979 the U.S. will lead to lower, not higher, real Thus, regardless of the average price of the U.S. less dependent on foreign oil and prices for refined petroleum products-if crude oil in the U.S., if U.S. refiners could reducing the power of OPEC to raise arti­ the "windfall profits" tax is not imposed. not sell gasoline at the world price, they ficially the world price of oil. The proposed windfall profits tax is ac­ would have shifted their production mix An immediate benefit of decontrol would tually a windfall revenue tax and would sub­ towards such products as heating oil and be the elimination of the need for refined stantially reduce incentives to increase U.S. away from gasoline with the result that less product allocation programs. This alone crude oil production. Passing this tax would gasoline would be produced domestically and would tend to lower distribution costs, enhance the Organization of Petroleum Ex­ more gasoline would be imported from off­ which, to the extent they operate on the port ing Countries' (OPEC) power over world shore refineries. margin, would lower retail prices. oil production and would increase crude and Today, virtually all major refined petro­ More important, the substantial increase refined oil product prices worldwide. leum product categories, other than gasoline, in incentives for crude oil producers would Prices of other fuels, including coal and are not subject to price controls; their prices lead to a significant increase in domestic uranium, would also rise. And even worse, are set by market forces. supplies of oil. Such a supply-side response the proposed tax is progressive. The greater The appearance this spring of gasoline can lead only to increased economic disci­ the real increase in oil prices, the higher the shortages suggests that price and allocation pline in the oil cartel's pricing policies and effective tax rat e, thus giving the U.S. gov­ controls on gasoline became effective, leading improved prospects for a decline in the rela­ ernment an incent ive to add to government to such non-price rationing methods as long tive or real price of petroleum products revenues by driving up oil prices relative to lines and weekend gasoline station closings. worldwide. the general price index. The Administration's decision to apply the Ironically all of this means that immedi­ ate decontrol of crude oil and refined petro­ THE IMPACT OF DECONTROL 7 percent "voluntary" price standards to gasoline-even though the involuntary price leum product prices in the U.S. would do In economics, the market price of any controls were being obeyed-tended to sup­ little to increase conservation of energy. product under perfect competition is deter­ press domestic gasoline prices below the Instead decontrol would tend to increase mined by cost of supplying the final unit world level. Such a policy discourages impor­ supplies and thus lower the prices of refined of output to the market : price equals mar­ tation of higher-priced gasoline and crude products below where they would be with ginal cost. Thus, given the competitive na­ oil, thereby aggravating the domestic gaso­ controls. This would increase consumption. ture of domestic energy markets, crude oil line supply situation. THE WINDFALL PROFITS (REVENUES) TAX price controls must lower the marginal cost De facto distribution of fuel oil also has As proposed, the President's windfall prof­ of supplying petroleum products to the come under the control of the Department of domestic market if they are to lower retail its tax would be a levy on revenues, not Energy through the application of the Ad­ profits, that result on a formula basis from gasoline, fuel oil, or other refined product ministration's "voluntary" price controls to prices within the U.S. economy. A program either decontrol of crude oil prices or an diesel fuel ando heating oil. As we would increase in the price of crude oil relative to that affects only the average cost of crude expect, reports of shortages of fuel oil have oil could have a large effect on the distribu­ the general price level in the U.S. after the grown in the aftermath of this attempt to fourth quarter of 1979. tion of profits within the oil industry, but hold retail prices below the world level. it would have no direct effect on the price Originally, the Administration projected Immediate decontrol would quickly end that by 1982 its tax collections would total of gasoline a t the pump. shortages of fuel oil and gasoline. 'Dhese nearly $3 billion per year with no real price The present system of price controls and shortages appeared first in those parts of the entitlements does not lower the marginal increase in oil, and $4.5 billion per year with country where fast economic growth, above the assumed 3 percent per year real increase cost of crude oil or petroleum products in average increases in gasoline demand and in oil prices. the U.S. changing driving patterns collided with a The proposed tax is destructive in several The U.S. market is integrated with world distribution system frozen in place by gov­ respects. First it aligns the interests of the petroleum markets. Some 45 % of American ernment controls. For example, until special Department of Energy and Congress with crude oil supplies is imported. The govern­ allocations were given to California by DOE, those of OPEC : the higher the world price ment's attempt to lower t he price of im­ energy regulations denied drivers in Cali­ of oil, the greater the revenues raised per ported oil to U.S . refiners- the entitlements fornia the opportunity to bid gasoline away barrel of oil via the windfall tax. DOE would program- does influence the average cost of from the rest of the world economy, includ­ administer the bulk of these funds . .There­ import ed crude oil. Under this program, re­ ing other slower-growing parts of the U.S. fore, any diminution in OPEC's power to levy finers who are using above average amounts This and similar approaches are probably monopoly profits would tend to reduce fund­ of old (price-cont rolled) domestic oil must more costly than allowing prices to rise ing for Energy Department programs. purchase entitlements from those refiners enough to clear the market. using above average amounts of imported oil. Second, since the tax program continues Also, the Administration's decision to to distinguish between different kinds of oil But, since the quantit y of entitlements ls phase in decontrol of crude oil over 16 monifus fixed, they can have no marginal effect. For (lower tier or old oil, upper tier or new oil rather than decontrolling all prices imme­ and oil discovered subsequent to decontrol) the industry as a whole, the marginal cost diately is counter productive. By delaying of the last barrel of crude oil is the world much of the regulatory apparaitus would decontrol while making total decontrol more have to remain in place to measure the out­ price. certain in October 1981, the Administration put of each kind of oil. Thus, the windfall The U .S. also participates directly in world has increased further the present value of refined product markets. U.S. distributors tax promises to extend regulations of the keeping oil in the ground between now and oll industry into the indefinite future, rais­ compete on a global basis for supplies of the lifting of price controls. heating oil, gasoline and other refined prod­ ing the spectre of reimposition of price con­ Thus, the step-by-step price increase pro­ trols based on current oil classifications. ucts, assuring U.S. wholesale prices (before gram will tend to reduce supplies of crude oil taxes) are equilibrated with world prices. during the duration of price controls, aggra­ Finally, to the extent the burden of the Other petroleum products, such as petro­ vating further the turmoil in today's inter­ tax is borne by producers of oil, the tax chemicals, are al.£0 set in world markets. national petroleum markets. would decrease incentives to discover oil in the U.S., shifting the emphasis to non-U.S. Thus, if U.S. price controls held wholesale Experiences with changes in the govern­ locaitions where the future ta.x climate is prices below the world price, U.S . buyers ment's oil control program also support our would be unable to compet e successfully for view that domestic refined petroleum product more favorable. supplies-their bid would be held below the prices are determined in world markets. The Moreover, the greater the expected future market bid by law. Domestic shortage3 would lifting of !heating oil price controls on July l, power of OPEC to levy monopoly prices, the be the immediate and unavoidable result. 1976 had little impact on retail fuel oil prices. greater the expected future tax, and the Similarly, the introduction of entitlements larger the decrease in current incentives to There is very little the U.S. can do to hold discover domestic oil. refined product prices below their world level in late 1974 and the lifting of a $2 per barrel without creating an "energy shortage" in the import fee on crude oil in January 1976 (ef­ 'Hence, the windfall tax would tend to U.S. During 1978, approximately $7 billion fective December 22, 1975) had no apparent significantly extend the life expectancy of of refined products were purchased from effect on domestic wholesale and retail heat­ the oil cartel and its power to set monopoly ing oil prices. foreign sources. If U.S. wholesalers, and ulti­ oil prices. The greater the burden of the mately consumers, were not permitted or These and other observations are all con­ tax borne by domestic oil production, the were unwilling to pay the world price, these sistent with the hypothesis that U.S. refined more OPEC's power would be enhanced. imports would all but disappear. product markets are integrated with world The impact of the proposed tax would be markets, thereby forcing domestic wholesale This reasoning applies to gasoline and to increase U.S. dependence on foreign oil prices to equilibrate with world prices and in the short and long term and push up the all other refined products which are traded neutralizing attempts to reduce domestic re­ in world markets. Until the recent shortages, price of oil and refined products worldwide. fi ned product prices through domestic crude The economic cost of the windfall tax, there­ price controls on gasoline were largely in­ oil price controls. effective in the U.S. By and large, the gaso­ fore, would be a lower standard of living line pump price was below its ceiling price, DO IT NOW! throughout the non OPEC world, a cost that suggesting that market forces, not govern­ Total and immediate decontrol would be would far exceed the revenue collections ment controls, had been dictating the retail the most important step toward achieving projected by the U.S. government. price. the Administration's stated goal of making And, since refined product prices ha.ve not November 28, 1979 EXTENSIONS OF REMARKS 33993 been reduced by the oil controls program, decline in the real price while maintaining REASONS TO OPPOSE THE CHILD all windfall profit.s projected by the admin­ the illusion th'at the cartel alone determined HEALTH ASSURANCE PROGRAM istration already are within the oil industry. the price of oil without regard to world de­ Any windfall profit.s identified. after decon­ mand. trol would be illusory for the industry a.s a The stability of refined prcduct prices in HON. DANIEL B. CRANE whole, nothing more than a.ccounting con­ constant dollars is also striking. Although OF ILLINOIS ventions or government reporting require­ the price of gasoline in March 1979 in real ments recording the predictable shift in terms was 25 percent higher than it was 7 IN THE HOUSE OF REPRESENTATIVES profit.s away from refiners, brokers and years ago, in first quarter 1979 dollars it was Wednesday, November 28, 1979 others in the distribution cha.in toward pro­ about 1 cent per gallon below its price in ducers of previously price-controlled oil. 1958. e Mr. DANIEL B. CRANE. Mr. Speaker, Thus, any windfall tax recei.pt.s, ln general, If crude oil were $17 per barrel today, it the House will soon consider H.R. 4962, would reduce the industry's a.fter-ta.x profits would be about the same price as at the end the child health assurance program below where they would have been without of 1973. An official OPEC world price ranging (CHAP). The bill is yet another threat decontrol. from $18 for Saudi Arabian benchmark crude to the rights of the States and the EFFECTS ON THE U.S. ECONOMY to $23.50 charged by some North African family. The Administration proposes that virtu­ countries represents a constant dollar in­ Presently, the States have the right to ally all of the revenues from the oil tax go crease over the previous peak of 5 to 37 per­ set income eligibility standards for re­ to fund new or expanded fede:ra.l programs. cent. ceipt of medicaid by pregnant women None of these revenues is ear-marked for A portion of this year's and 1973's real price tax rate reduction or reduction of the na­ increase also can be attributed to errant U.S. and children. The CHAP bill, however, tional debt. monetary policy. During periods of monetary would change this by federalizing these Thus, for the economy as a whole, the uncertainty and high inflation, investors tend standards. As a consequence, the Fed­ proposed oil tax represents an increase in to switch out of financial assets into real as­ eral Goverrunent would assume a much the overall tax wedge. Tax increases in one sets. Private investors buy antiques or gold greater share of State medicaid costs, area resulting in tax reductions elsewhere instead of bonds leading to relative price shift but with that the States will lose much may lead to expanded growth and output, between real and financial assets. Similarly, of their authority over the medicaid but when tax increases are coupled with oil exporting countries may choose to lower program. transfer spending increases, as they are in production and substitute the oil in the the Adininistration's plan, or coupled with ground for financial assets (monetary re­ What all this would lead to is more displacement of the private sector by a less serves) , raising the real price of oil in the and more reliance on the Federal Gov­ efficient public effort, output and output process. ernment, a diminishing role for State growth are reduced. OIL STOCKS governments, and a reduction of paren­ If DOE would be more successful in de­ The behavior of three oil indexes published tal prerogatives regarding their chil­ veloping alternate energy sources than the by Standard and Poor's-crude oil, integrated dren's health care. private sector, then output and output domestic, and integrated international-is The December 1, 1979, issue of Human growth would be enhanced. But unlike a consistent with the analysis in Figure 3. The Events contains an excellent article on private sector effort, if DOE is successful, it index of crude oil producers, for example, de­ would suffer a significant reduction in reve­ clined sharply between 1972 and 1975 with the CHAP bill entitled, " 'Chap': Big nues and tend to go out of business. Thus it the imposition of crude oil price controls, Brother Health Care for Children." In is reasonable to assume that the probabilities thereby suggesting these controls did reduce it, my distinguished colleague, the Hon­ of the government being more effective in the anticipated returns to crude oil produc­ orable WILLIAM E. DANNEMEYER, points developing alternate energy sources are less ers. By contrast, the index for integrated out that the CHAP bill is also a tremen­ than the private sector's. domestic oil companies increased, both rela­ dous threat to the institution of the The proposed tax package would most tive to the crude oil index and the S&P in­ family. For with enactment of the bill, likely reduce output and output growth in dustrials. it will become an acceptable fact that the U.S. This is consistent with our position that the Federal Government, rather than the Revenue collections from the oil tax are crude oil price controls merely transferred likely to be below the Administration's ex­ profits from producers of domestic oil to parents, will be determining what kinds pectations, not only because additional types refiners of domestic crude oil. For the inte­ of medical testing and treatment their of oil will probably be excluded from the tax grated domestic companies, this would tend children should have. by Congress, but also because domestic oil to leave total profits unchanged, or, to the Since the Human Events article speaks output will decline. extent the integrated companies were net so well on the inherent problems of the OIL PRICES AND MONETARY POLICY purchasers of price controlled crude, tend to CHAP bill, I am inserting it here for the To a significant extent, the rapid rise of increase total profits. thoughtful attention of my colleagues: the dollar price of crude oil is the result of In fact, crude oil price controls in 1975 "CHAP": BIG BROTHER HEALTH CARE FOR U.S. monetary policy during the last decade. transferred an estimated $12 billion from CHILDREN producers of domestic crude oil to refiners. It is no accident that the fourfold increase With hardly anyone paying attention, lib­ in the price of crude oil in 1973 and the re­ Of that, an estimated $3-4 billion was transferred to non-affiliated refiners, with erals on the House Interstate and Foreign cent run-up in the dollar price of oil were Commerce Committee have quietl_¥ set the preceded by and then coincident with ex­ the remainder transferred within integrated companies. With the recent increase in the stage for passage of a multi-bi1110n-dollar traordinary increases in the world dollar measure to federalize Medicaid eligibility money supply. real price of oil and the end of price controls standards for children and pregnant For example, the monetary reserves of the apparently at hand, however, the crude oil women-a decision now left with the states­ industrial countries measured in dollars at index has risen slightly more than the inte­ and to vastly expand the program's coverage. market prices more than tripled between the grated domestic index. Known as the Child Health Assurance Pro­ end of 1969 and the end of 1973 before jump­ Over the last decade, the integrated domes­ gram (CHAP), the measure-which would ing another 38 percent in 1974. And in the tic index has also performed better than the come to a House vote as early as this week­ 12 months ending February 1979, the world integrated international index. The biggest is sponsored by Representatives Henry dollar monetary base expanded 33 percent-­ difference in price movements between these Waxman (D.-Calif.) and Andrew Maguire one of the largest year over year jumps since two indexes also occurred in 1973 and 1974. (D.-N.J.) . The senate Finance Committee has the middle 1970's. Since 1970, the dollar value One plausible explanation is that it was dur­ approved a more limited CHAP bill. of these monetary reserves has more than ing this period that the oil-producing coun­ The purpose of CHAP is a broaden sub­ quintupled. tries moved to obtain, in one manner or an­ stantially the number of children and preg­ Between 1970 and the end of 1978, approx­ other, the propertv rights to the crude oil nant ~omen covered by Medicaid, with the imately half of the increase in the price of being produced within their borders. federal government assuming a much greater oil can be attributed to the general loss of Hence, the integrated international oil share of state Medicaid costs. According to the value of the dollar. In fact, until the companies were not able to participate as the Congressional Budget Office, the tab for recent spate of price increases, the price of the House version would come to about $5.5 crude oil had been falling in real terms since much as the integrated domestic compa­ nies-who retained ownership of their crude billion through fiscal 1984. In point of fact, 1973. however, the CBO estimate is probably In the four years ending December 1978, oil-in the gain associated with the real in­ grossly understated. the world price of oil in constant dollars fell crease in oil prices. Between December and To begin with, CHAP is an "entitlement" more than 20 percent. Dollar inflation, there­ the end of May, this experience was repeated program-Le., one of the so-called "uncon­ fore, enabled OPEC to avoid the difficult with the integrated international index ris­ trollable" expenditure programs under which task of negotiating a nominal price cut in ing only about half as much as the integrated everyone who meets the eligibility formula oil, allowing its members to acquiesce to the domestic index.e can get coverage no matter how high the 33994 EXTENSIONS OF REMARKS November 28, 1979 aggregate cost. What's more, everything does that do to the physician's exercise of House report's reference (page 68) to the im­ about this bill is designed to intlate the judgment on what's best for his or her portance of "guaranteeing a 'medical home' program. Not only is the eligibility thresh­ patient? If the family ls to continue to be for Medicaid children. . . ." hold made more lax, but, since Uncle Sam the basic organizational unit of society," Viewed in this light, the Child Health will be shouldering nearly all of the expense, says Dannemeyer, "then the heads of the Assurance Act (HR4962) should be numbered the states, which will administer the pro­ family rather than some faceless bureau­ among the more significant-and contro­ gram, will have little incentive to hold down crat must have ultimate responsibility and versial-pieces of legislation to come up for costs. authority. And the physician, working with consideration in the 96th Congress. But un­ On the contrary, the measure actually gives the heads of the family, must be able to rely less conservatives act quickly, CHAP could "bonus" funding to states operating heavily on his judgment, as a professional, to assist become law before most Americans even know used programs while penalizing those states in the fulfillment of that responsibility." what's at stake.e that try to minimize expenditures, thereby Dannemeyer's fears about the danger to assuring that the money spigot will remain the family are by no means exaggerated. As wide open. The truth, therefore, is that no is clearly manifest from the bill's provisions, one can accurately predict the billions such what CHAP's supporters have in mind goes an open-ended program will consume. far beyond simply having the government LIBERTARIANS FOR LIFE Specifically, the CHAP measure would pay for the medical services poor people re­ for the first time establish a nationwide fed­ quest for their children. Instead, they want eral fioor on Medicaid coverage of children the government to "manage the medical care HON. RON PAUL and pregnant women. Under present law, for for the child on a continuing basis. OF TEXAS example, a state Medicaid program is only An idea of where such thinking leads can IN THE HOUSE OF REPRESENTATIVES required to cover children from broken be seen in a 75-page report recently com­ homes. And pregnant women have to be cov­ pleted by the North Carolina Department of Wednesday, November 28, 1979 ered only if they are also receiving welfare Human Resources in response to a 1977 re­ •Mr. PAUL. Mr. Speaker, as a medical payments under the Aid to Families with quest from HEW that it "develop an initia­ Dependent Children (AFDC) program, which tive to 'regionalize child health care' in re­ student, I had not really thought about in many states means that they already have sponse to the emerging national priority to­ abortion until I saw a 2-pound infant at least one child and no husband living at ward developing a child health strategy." taken from the mother's womb after a home. That report-entitled A Child Health Plan hysterotomy and left on a table to die. But under the new eligibUity standards for Raising a New Generation, and bearing That experience taught me all I needed imposed by the House measure, all individ­ the symbol of the International Year of the to know. uals up to at least age 18 would have to be Child on its cover-is nothing short of a The right to life is seamless, extend­ included if their famUies' incomes amounted blueprint for Big Brother health care for ing from the moment of conception, to less than two-thirds of the federal poverty children. level, or about $5,000 for a family of four in According to fillis astonishing document, when a new life begins through the grace 1980. This would be true whether or not both it is not enough for a child to have a "family of God, until old age. parents were living at home. Similarly, a home." In addition, "every child" (emphasis Abortion, like infanticide and eutha­ pregnant woman would have to be covered added) must also have a "health care home." nasia, is murder. if her income was less than 80 per cent of "Like a family home," says the report, "a Recently my good friend Doris Gor­ the poverty level, even if she were single health care home will have a geographic lo­ don, founder and head of Libertarians and not eligible for AFDC payments. cation. It will also require continuing rela­ for Life, addressed the Maryland Right The legislation not only broadens the num­ tionships with an individual or group of ber of people included in the program, but care providers." to Life Convention. it also mandates much more extensive serv­ In short, "health care" as envisioned by What Mrs. Gordon has to say is impor­ ices. As the House committee report explains: the North Carolina report is to be provided tant for all of us, as is her eloquent "In addition to services currently required to "every child," not just the poor. Moreover, dedication to human life and individual under Medicaid, all states must provide cov­ the concept of "health care" is a very broad rights. erage of child health assessments, immuniza­ one indeed, encompassing not just thera­ tions, routine dental care, diagnosis and peutic medical services but also such items Her address follows: treatment of vision and hearing problems as child "advocacy," "family and economic How I BECAME PRO-LIFE (including hearing aids and eyeglasses), counseling," "day care" of children, "special (By Doris Gordon) prescribed drugs and insulin, prosthetic de­ residential arrangements on a temporary or In 1959 I read a book that changed my vices, home health services, physical therapy, permanent basis" for teen-agers who do not life and thoughts profoundly. Its name was rehabilitative services, ambulatory mental want to live at home, "family planning" serv­ Atlas Shrugged; its author, Ayn Rand. It health services, and emergency crisis inter­ ices, "abortion" as an "alternative solution," was her ideas together with those of vention inpatient mental health services "genetic consultation," "nutritional supple­ for children." Nathaniel Branden, a famous psychologist mentation," and on and on. who was once closely associated with her, Moreover, it is generally a.cknowledged Clearly, for the authors of the North Caro­ that ma.de me eventually pro-life. Ironically, that the explosion in medical costs since the lina "blue book," government-supported both strongly support abortion. advent of Medicare and Medicaid in the mid­ "health care" for children means, just as the Rand and Branden taught me aggression '60s has resulted from the fact that a "third title suggests, virtually everything involved is wrong; that human relationships should party," usually the taxpayer, often foots the in "raising a new generation." As might be be based upon persuasion and voluntarism entire bill for medical costs, leaving little expected, hundreds of parents throughout the instead of coercion or fraud; that the moral incentive for either patients or health-care state, who are still benighted enough to think and the practical are one and the same, in· providers to limit services to those which can that raising children is their role, have the long run at least; that first of all we be reasonably justified. Nevertheless, under greeted this "plan" with outrage. But that must do no ha.rm; and that ea.ch of us is CHAP, according to the committee report, has not stopped Democratic Gov. James B. personaJly responsible for our own actions, "States could not set limits on the amount, Hunt Jr. from endorsing the report as "North but not the actions of others. duration or scope of these services for chil­ Carolina's action plan for providing health dren, or require oopayments." services to children in this state," nor has it I also learned that the chief source of coercion and fraud is the state; that instead But the fiaws in CHAP are not confined to stopped the state legislature from enacting a of being helped and protected by the state, economics alone. Perhaps more disquieting measure to begin its implementation. we are harmed in countless ways; that in is the clear threat it poses to the institution That even one state, fully five years ahead order to create a more humane and healthy of the family. Warns Rep. William E. Danne­ of 1984, has embraced such an Orwellian plan society, we should turn away from the state meyer (R-Calif.) in his dissenting views on is bad enough. Much worse is the prospect the measure: and strengthen those voluntary institutions that, under the CHAP program now moving in society which do in fact promote the "Once it becomes an accepted fact of life through Congress, the federal taxpayer would good-such as the family, private charities, that the government, rather thart poor be forced to foot a much larger part of the the free enterprise system, and even the parents, should determine what kinds of bill than under current Medicaid law. Indeed, churches. I say "even", for, as some of you medical testing and treatment their children the matching funds for the Tar Heel State may know, I am an atheist. I point this out should have, then it could later be argued would jump from 6'8 percent to 95 percent. just to make it clear my pro-life position is that the government should have the right to And with an of this extra money from derived entirely from philosophical a.nd sci­ put poor children in foster homes or govern­ Washington suddenly available, the pressures entific ideas and is not intluenced by reli­ ment-run youth camps supposedly for their would only increase for more states to follow gious beliefs. physical or material benefit. in North Carolina's footsteps. This probably I don't know when I first thought about "And if it becomes accepted policy, as it wouldn't bother the House bill's liberal sup­ abortion, but I had always accepted the idea is already becoming, for HEW to issue rules porters, however. Indeed, the House com­ in some vague sort of way. But twelve years and regulations governing the types of mittee report displays some of the same kind a.go, I attended a lecture given by some dis­ screening and testing that should be done of anti-family thinking that pervades the ciples of Rand. Someone in the audience on children, and how it should be done, what astounding Tar Heel plan, as witness the challenged their pro-abortion position a.nd November 28, 1979 EXTENSIONS OF REMARKS 33995 then a. debate ensued about when the human military. But children can point to their par­ is the only justification for the existence of being comes into existence. 'Ilhis struck me ents and say you owe me care. government, and this is recognized by the a.s odd, for Ayn Rand's philosophy, which Now I can point my finger at each one of Declaration of Independence. she calls Objectivism, starts from the preLondon Dally Telegraph last writes in the October 16 issue: "This sort of Mises' remark is correct: "There '1s only one fall, and his opening statements lay it on the unemployment which we temporarily 'cure' absolutely successful hedge against inflation: line : "The responsib111ty for current world­ by inflation, but in the long run are making age." wide inflation, I am sorry to say, rests wholly worse by it, is due to the misdirection of and squarely with the economists, or at least resources which inflation causes. It can be Like Hayek, I seldom add "unless we's." with the great majority who have embraced prevented only by a movement of workers Ha.yek's vision of the future is too compel- the teachings of Lord Keynes. What we are from the jobs where there is an excess sup­ 1ng. It ls too consistent with the goals of experiencing are simply economic conse­ ply to those where there is a shortage. In the messianic state. Thus, I save my "unless quences of Lord Keynes." (Oct. 15, 1974) . other words, a. continuous adjustment of the we's" for the far side of the disaster, whether What aspect of Keynes' theory does Hayek various kinds of labour to the changing de­ it is a mases inflation-depression disaster, or a. repressed inflation (controls) disaster. have in mind? His defense of deficits financed mand requires a. real labour market in which the wages of the different kinds of labour The key to the future is not held by by fiat money. Every reputable economist autonomous man. The messianic state ts prior to Keynes would have predicted that a.re determined by demand and supply." Again, his logic would apply equally well to self-defeating. It cannot calculate rational­ these policies would lead inevitably to price ly. It is totally parasitic. Without free men inflation, Hayek argues. Naturally, the poli­ all factors of production. "Without a func­ tioning labour market there can be no mean­ a.cting responsibly in their particular call­ ticians readily adopted a supposed theoreti­ ings, the modern world would grind to a cal justification for reducing unemployment ingful cost calculation and no efficient use halt. by increased government expenditures. But of resources." Yet it is the attempt o! the the theory was supposed to apply only when stat e to cont rol the movement of aggregate The international and even dOinestic divi­ there was unemployment of a. very special prices by means of fl.seal and monetary poli­ sion of labor cannot survive under full in­ kind : unemployment without rising prices. cies which disrupt the very mechanism of ternational socialism. In all of history the "And now, when the steadily accelerating adjustment: the flexible price system. socialists have only been aible to na.tionallze rise of prices has rather discredited this view, He t hinks that people will learn that in­ successfully one item: socialism. The com­ the general excuse is still that a moderate in­ flation-generated increased wages always peting waves of tariffs, quotas, exchange fiation is a small price to pay for full em- lead to increased prices. There is llttle in controls on money, capital controls, and November 28, 1979 EXTENSIONS OF REMARKS 33999 all the rest of the tools of the modern base year of 100, the farm cost­ vironmental enhancement measures which socialism can lead only to the fragmentation of-production index reached 250 in July are recommended by county and State ASC' of international trade a.nd productivity. of this year. Even though commodity Committees and approved by the Secretary We will be visited •by the ghost of the prices are relatively good, farm expenses which are needed to maintain or improve the Smoot-Hawley tariff, and the result will productivity of farmland; and such loans be the same: the destruction of wealth. But continue to squeeze profits. These profits shall be for a period not to exceed ten years when the messianic states finally exhaust must provide a living for the farmer and at a rate of interest based upon the rate of their resources in an orgy of planning, there his family, must educate the children, interest charged the corporation by the will be pockets of resistance, direct controls­ and must replace the high-priced ma­ United States Treasury." e the means of enfor-cement in a comma.nd chinery necessary for production. Often, economy--ca.n be imposed only at the cen­ there is little disposable income left for ters of population, and then only imper­ investment in costly pollution control or FIGHTING INFLATION BY INCREAS­ fectly. The 1arger the geographical area, and ING PRODUCTION AND REDUCING the more dispersed the population, the more soil- and water-conservation practices. oostly and inefficient is the control mech­ In 1967. the Congress appropriated UNEMPLOYMENT anism. It is too easy to buy off the enforcers. $220 million for the agriculture conserva­ Socialist controls do not apply equally well tion program. Using the farm cost-of­ in every region of a large planning region. production index we would have needed HON. AUGUSTUS F. HAWKINS With the feudaliza.tion of the economy, local to appropriate $550 million for ACP in OF CALIFORNIA pockets of free trade can exist.e 1980, to achieve the same level of con­ IN THE HOUSE OF REPRESENTATIVES servation activity that was performed Wednesday, November 28, 1979 in 1967. The fiscal year 1980 appropria­ tion for ACP is only $190 million. · e Mr. HAWKINS. Mr. Speaker, the STATEMENT BY ED JONES UPON IN­ While the appropriations for cost­ American people and their Government TRODUCTION OF CONSERVATION share assistance continue to go down in are challenged as never before by the LOAN BILL real terms, farmers and ranchers are disease of inflation. One of the urgent facing new, and often expensive, require­ and major tasks of domestic national HON. ED JONES ments for nonpoint pollution control policy is to bring all public weapons to mandated by the Clean Water Act. These bear upon reduction of inflation and OF TENNESSEE are practices needed to clean up our restoration of price stability as rapidly IN THE HOUSE OF REPRESENTATIVES Nation's waters and often provide little as possible. Wednesday, November 28, 1979 or no on-farm benefits to the producer. This does not mean that there are not My bill provides for a simple loan other equally serious national problems • Mr. JONES of Tennessee. Mr. mechanism patterned after the farm such as excessive unemployment. But, Speaker, the Conservation and Credit storage facility loan program which rampant inflation makes it harder to Subcommittee of the Agriculture Com­ gain support for national policies to solve mittee, which I chair, has held hearings has been successfully ·administered by the Agriculture Stabilization Conserva.: that problem until it is clear that infla­ across the Nation on soil conservation tion is being reduced. However, the prob­ problems and programs. We have found tion Service since 1950. Over the long run strong local support for the agricultural it will not coot the Federal Treasury a lem of inflation cannot be treated in conservation program and the Great great deal of money. It will provide a isolation because the reduction of unem­ Plains conservation program, our two needed source of credit to agricultural ployment is inseparably connected with basic cost-sharing efforts. As expected, producers to install practices to conserve the reduction of inflation. higher funding levels were urged on us water, save soil and clean up our Nation's The rate of consumer price inflation, and each year I make a personal effort to waters. despite some slackening during some get those levels raised, but it has been This Nation must be willing to invest years, has been chronically on the in­ largely unrewarding. in the future productivity of our agri­ crease for more than a quarter century. Another shortcoming of the Federal cultural plant. We have been blessed During 1952-55, the rate averaged an­ conservation effort, however, is the lack with abundance in the past. Whether nually only 0.3 percent; during 1955-58, of financial credit available to farmers future generations, here and abroad en­ the annual average increase was 2.6 per­ to perform a broad range of conservation joy this abundance of food and fiber: de­ cent; during 1958-66, it was lower at 1.5 practices. pends on what actions we take today. If percent; during 1966-69, it was 4.1 per­ To alleviate that problem I am intro·­ our agricultural resource base continues cent; during 1969-79, it was 6.9 percent; ducing a bill "to provide for conservation to deteriorate, we face serious problems from fourth quarter 1978 to fourth quar­ loans for the purposes of maintaining in the future. ter 1979 (fourth quarter 1979 estimated), and improving the productivity of farm­ I urge my colleagues to join me in sup­ it was 10.9 percent; and this estimate land." This bill provides that the Com­ porting the passage of this modest com­ may well be too low because during re­ modity Credit Corporation shall make mitment to the protection of our most cent months the annual rate of increase both secured and unsecured loans to ag­ basic needs, our future supply of food has been 13 percent or higher. At least ricultural producers for installing pollu­ and fiber. since 1969 to date, the upward movement tion control and conservation measures H.R.- of producer prices have been even more on their land. The loans would be for Be tt enacted by the Senate and House of extreme, with an estimated increase of periods of up to 10 years at a rate of in­ Representatives of the United States of 13 percent from fourth quarter 1978 to America in Congress assembled, That, sec­ fourth quarter 1979, and an annual rate terest commensurate to the cost of tion 4(h) of the Commodity Credit Corpora­ money to the U.S. Treasury. tion Charter Act (62 Stat. 1070, as amended; of about 14.5 percent now. Current fore­ We are falling dangerously behind in 15 U.S.C. 714b(h)) ls further a.mended by in­ casts are that we will continue to experi­ the protection of our most basic resource, serting immediately before the period at the ence double digit inflation in 1980. our soil. Years of benign neglect are tak­ end of the second sentence the following: ": Inflation in these ranges has its cruel­ ing their toll on our ability to produce. And provided further, That to enoourage the est effects upon the underprivileged, the This year our Nation's farmers will pro­ alleviation of conservation and environ­ senior citizens, the poor, and the unem­ vide over $32 billion of farm commodities mental problems which reduce the produc­ ployed; penalizes those living on fixed in­ tive capacity of the Nation's land water re­ to our friends overseas. Our agricultural sources or ca.uses degradation of environ­ comes; and creates distortions through­ resource base has become vital to the mental quality, the Corporation shall make out the whole economic structure which very survival of many millions of peo­ annually ( 1) unsecured conservation loans make it harder to do business and to plan ple around the world. This demand for to agricultural producers for which the total ahead. It decreases the value of whatever food will not diminish. At the same aggregate a.mount of any such loans to any public expenditures are made for na­ time, we are doing woefully little to in­ one producer does not exceed $10,000 and (2) tional purposes and to help those first sure that future generations, both here secured conservation loans to agricultural who need help most. It increases the and abroad, will enjoy the benefits of a producers for which the total aggregate of any such loans to any one producer exceeds burden of national defense. It creates in­ productive American agriculture. $10,000 but is less than $25,000, the total of flationary expectations which feed on I believe that most farmers and ranch­ such unsecured and secured loans not to ex­ themselves. Internationally, our raging ers are good stewards of their land, but ceed $200,000,000 ln any one fl.seal year; such domestic inflation weakens the dollar costs are rising rapidly. Using 1967 as a loans sha.11 be for those conserva.tlon and en- everywhere, pushes up the price of gold 34000 EXTENSIONS OF REMARKS November 28, 1979 and makes it easier for overseas com­ This empirical observ;ation demon­ ages emerging in consequence of the petitors to make serious inroads upon our strated, about as clearly as anything can previous recession. home markets. be demonstrated in the field of practical Policies used in the attempted "trade­ We still have not applied effective economics, that slow economic growth, off" also redistribute incomes in ways weapons against inflation. One obstacle stagnation, recession, and high idleness - which are extremely regressive. This en­ has been a Babel of conflicting advice of workers and other production f acili­ ables many of the more fortunately situ­ from supP-Osedly knowledgeable experts ties increase inflation, and that strong ated to benefit by the inflation, while as to the proper remedy. Thus, conflict­ movements toward and close proximity those who are less fortunate or distinctly ing policies have been applied. It is clear to full use of our production capabilities unfortunate are hurt most by the infla­ the policies applied have been wrong decrease inflation and even brings rea­ tion. This very process of income mal­ from the start to finish, tested by the sonable price stability. distribution aggravates the imbalances results. The factual evidence in support of this in the economy, prolongs the poor eco­ These still-prevalent policies, both conclusion has been made available to nomic performance, makes satisfactory monetary and fiscal, have applied the the Congress, the executive branch, eco­ recovery more difficult, and in the longer "trade-off" theory: that is, the way to nomic experts and other analysts many run increases the prospects of one down­ fight inflation is to slow down the econ­ times. A few additional facts may be turn after another. omy, bring on repeated recessions, and helpful. From first quarter 1974 to first Prompt and decisive action against in­ chronically increase the idleness of work­ quarter 1975, in the midst of the most flation must commence with reversal of ers and other production facilities. This severe economic downturn since the the policy of contrived stagnations and classical theory has no practical validity Great Depression, the increase was 11 recession which has been the primary­ in the modern economy, and has failed percent for consumer prices, 14.1 percent although not the only-cause of un­ because it has no justification in the ex­ for producer prices of all finished goods, bridled .inflation. Consequently, prompt perience of the past quarter century to and 16.7 percent for producer prices of and decisive action is needed to promote date. consumer finished goods excluding food. growth in production and employment at An emerging but not yet applied rec­ In contrast, from fourth quarter 1975 to rates sufficient to achieve the 1983 unem­ ognition of how the American economy first quarter 1976, a period marked by an ployment reduction and other goals of actually works under modem conditions extremely strong economic recovery, the the Humphrey-Hawkins act. is to be found in the 4-year history of annual rates of inflation were only 3.9 consideration and adoption of the Hum­ percent, 0.4 percent, and 4.4 percent for The policies of the Federal Reserve these three categories, respectively. Board and System are the outstanding phrey-Hawkins Full Employment and example of the wrong policies by all tests. Balanced Growth Act of 1978. Recogniz­ But from fourth quarter 1978 to fourth ing after intensive study and thorough quarter 1979 of those with incomes under more investment demonstrably due to or housing and, as to the last two of these $3,000, and only 4.5 percent to those with the tax benefits. at least, the rising interest costs con­ incomes between $5,000 and $10,000, and These conclusions are supported wide­ tribute immensely to the rate of infia­ added 6.1 percent for those with in­ ly. The 1979 Midyear Review of the tion. Further, the tight and inequitable comes over $50,000. This has not only Economy by the Joint Economic Com­ apportionment of credit and the rising 1been inequitable; it lhas also worked mittee found that "Personal consumption interest rates hit hardest the farmer, against economic balance and growth. expenditures were the • • • major factor small businessman, homeowners, and Even more impartant, the tax cuts responsible for the economic weaknesses energy-producers; and, above all, the and concessions, at least since 1974, have we have observed for the first half of general consumer, hit by the dangerously allocated far too much relatively to the 1979" ng Remarks section of the CONGRESSIONAL and should be pointed directly to areas years of symptomatic delay and indeci­ RECORD on Monday and Wednesday of of high need, both toward being more sion in coping with the energy problem, each week. efficient in stimulating the economy and it will take several years at least to make Any changes in committee scheduling toward increasing high priority goods a real dent upon the energy problem will be indicated by placement of an and services. This course is highly anti­ even if at long last we begin to deal with asterisk to the left of the name of the infta tionary. it properly. unit conducting such meetings. The currently restrictive Federal Moreover, by addressing rather than Meetings scheduled for Thursday, No­ Budget, in the name of fighting infla­ short-changing many of the other prob­ vember 29, 1979, may be found in the tion, is dangerously neglectful of these lems dealt with in this discussion, we Daily Digest of today's RECORD. would greatly reduce the inflationary im­ priorities of need. Excluding national de­ MEETINGS SCHEDULED fense, the fiscal 1980 budget on the do­ pact of the energy problem by reducing other causes of inflation, and by promot­ NOVEMBER 30 mestic side provides no expansion or 8:00a.m. moves downward. The President's ing shifts in economic activities from Agriculture, Nutrition, and Forestry Budget projections would reduce Federal higher to lower energy-consumer areas, Rural Development Subcommittee outlays for all domestic programs from for example, mass transportation, hous­ To continue oversight hearings on the 1'6.01 percent of GNP in fiscal 1979 to ing, and priority services. implementation of rural housing pro­ 14.94 percent in fiscal 1982. The impact Finally, none of the difficulties depicted grams, relative to home weatheriza­ of the reductions in this ratio would be throughout this discussion, including rag­ tion serving rural areas. especially severe with respect to man­ ing inflation, can be dealt with effectively _ 324 Russell Building power, including public service pro­ through ad hoc improvised, and discon­ 9:30a.m. nected natfonal policies and programs. Commerce, Science, and Transportation grams, education, health, income secu­ Consumer Subcommittee rity, and housing and community We immediately need the comprehensive To hold oversight hearings on the Fed­ development. and consistent effort, long-range as well eral Trade Commission's authority to This is not at all responsive to the as short-range, mandated by the Hum­ order divestiture In certain antitrust Government's responsibility in these phrey-Hawkins Act but systematically proceedings. areas, and it is highly inflationary be­ violated to date. Without proper and con­ 235 Russell Building cause it is in some of these areas that sistent long-range goals, we cannot have Governmental Affairs inflationary shortages and/or scarcities proper and consistent policies and Permanent Investigations Subcommittee programs. To continue hearings on professional are most acute. Moreover, there has been motor vehicle theft and the potential a very long-term trend toward reduced Even until now, the statements of Fed­ in it by organized crime. employment or reduced employment per eral Reserve Board Chairman Volcker, 3302 Dirksen Bu1ld1ng unit of output in many of the conven­ Treasury Secretary Miller, and Council Judiciary tional mass production industries, due of Economic Advisers Chairman Schultze, To hold hearings on S. 1679, to reduce primarily to technological trends which reveal an adamant determination to per­ delays and legal expenses in the is­ are continuing and augmenting. sist in the policies which have failed, and suance of patents. Consequently, a restrictive rather not to move 1 inch toward revision 2228 Dirksen Bullding on the basis of compelling evidence on 10:00 a.m than an expansionary approach to the all fronts. All of this is in absolute vio­ Armed Services priority areas, listed just above, is fatal lation of the Humphrey-Hawkins Act. Procurement Polley and Reprograming to adequate overall economic growth In a still larger sense, to observe what Subcommittee and adequate reduction of unemploy­ is now going on fills me with concern To receive testimony on optional finan­ ment, imposes cruel hardship upon the about the future of our country and its cial spending programs !or the civil disadvantaged, and is highly inflation­ place in the world. "Sacrifices" are being reserve alrfieet of the Department of ary to boot. Defense. urged and imposed upon the wrong peo­ 224 Russell Building No part of this discussion is weakened ple, while others continue to batten on Environment and Public Works in the slightest by the energy problem. the inflationary process. We are advised Water Resource> Subcommittee We are not faced with a recently devel­ what not to do and to do without, but To resume consideration of S. 703, to oped series of problems but rather by not being summoned to progress and provide !or the study, advanced en­ events which, through very low-average achievement in accord with our true gineering and design and/or construc­ real economic growth, chronically rising potentials. We are warned what we "can­ tion of certain public works projects inflation, chronically rising idleness of not afford," but not told what we need !or navigation and fiood control on rivers and harbors in the U.S. and workers and other production facilities, to do. trust territories. and six periods of stagnation and reces­ This is not the road to realizing the 4200 Dirksen Bullding sion-all from 1953 to date-have caused full promise of America, and must .alter DECEMBER 4 us to forfeit more than 7 trillion 1978 our course before the hour is even later 9:30 a.m. dollars worth of GNP and more than 80 than now.• Governmental Affairs million years of civilian employment Permanent Investigations Subcommittee with much more of the same to come. To resume hearings on profes.sional Four of these recessions occurred be­ SENATE COMMITTEE MEETINGS motor vehicle theft and the potential in it by organized crdme. fore the OPEC price increases of the Title IV of Senate Resolution 4, agreed 3302 Dirksen Building mid-1970's, and the 1979 recession was to by the Senate on February 4, 1977, Judiciary forecast by most economists before the calls for establishment of a system for a To resume consideration of S. 1722 and OPEC price hikes of early 1979. computerized schedule of all meetings 1723, bills to reform the Federal crimi­ Independent of the inflationary im­ and hearings of Senate committees, sub­ nal laws and streamline the adminis­ pact of the energy situation, the under­ committees, joint committees, and com­ tration o! criminal justice. lying rate of inflation during recent mittees of conference. This title requires 2228 Dirksen Building November 28, 1979 EXTENSIONS OF REMARKS 34003 10:00 a.m. the Secretary of the Interior to de­ To hold closed hearings to review the Governmental Affairs clare certain land to be Indian reser­ current status of the strategic petro­ Energy, Nuclear Proliferation, and Federal vation land; and S. 1273, to restore leum reserve program. Services Subcommittee Federal recognition to certain bands 8-407, Capitol To hold hearings on S. 1938, to increase of Paiute Indians in the State of Utah. 10 :00 a.m. government emciency and to provide 6228 Dirksen Building Banking, Housing, and Urban Affairs a mechanism for raising the level of 10:30 a.m. International Finance Subcommittee protection for the public against un­ Conferees To continue oversight hearings to re­ necessary radiation exposure. Closed on H.R. 5359, making appropria­ view international monetary policy 1114 Dirksen Building tions !or fiscal year 1g80 for the de­ relative to the Eurodollar currency. •Select on Indian Affairs fense establishment. 5302 Dirksen Building To hold hearings on S. 341, 1795, and S-128, Capitol DECEMBER 14 1796, bllls authorizing certain Indian 2:30 p.m. 9:00 a .m. tribes to file claims for damages for Finance Commerce, Science, and Transportation delay in payment for lands claimed to Private Pension Plans and Employee Fringe SCience, Technology, and Space Subcom­ be taken in violation of U.S. laws. Benefits Subcommittee mittee 5110 Dirksen Building To continue hearings on S. 1089, 209, 511, To resume hearings on the scope of laser 2:00 p.m. 989, 1090, 1091, 1092, 1240, and 1958, research and technology, focusing on conferees b1lls to provide certain tax deductions the principal appllcations of lasers and Closed, on H.R. 5359, making appropria­ and credits for employee pension con­ future expectations from lasers. tions for fiscal year 1980 for the de­ tributions. _ 235 Russell Building fense establishment. 2221 Dirksen Building 10:00 a..m. Room S-126, Capitol DECEMBER 6 Banking, Housing, and Urban Affairs conferees 9:30a.m. International Fina.nee Subcommittee On H.R. 2440, to provide assistance to Governmental Affairs To continue oversight hearings to review airport operators to prepare and carry To hold hearings on S. 1945, to establish International monetary policy relative out noise compatib111ty programs, to a procedure for congressional review of to the Eurodollar currency. provide assistance to assure continued Federal agencies' rules and regulations. 5302 Dirksen Building safety in aviation, and to provdde as­ 3302 Dirksen Building sistance to aircraft operators to aid DECEMBER 17 them in complying with noise stand­ DECEMBER 7 10:00 a..m. ards. 10:00 a.m. Select on Indian Affairs Room to be announced Joint Economic To resume hearings on the employment­ To hold hearings to determine whether 2:30 p.m. the April 1, 1980, statute of limitations Finance unemployment situation and price Private Pension Plans and Employee Fringe data. information for November. deadline should be extended for com­ Room to be announced mencing actions on behalf of an In­ Benefits Subcommittee dian tribe, band, or group by the Fed­ To hold hearings on S. 1089, 209, 511, DECEMBER 10 eral Government. 989, 1090, 1091, 1092, 1240, and 1958, 10:00 a..m. 1202 Dirksen Building bllls to provide certadn tax deductions Select on Indian Affairs and credits for employee pension con­ To hold hearings on S. 1464, to acquire JANUARY 15, 1980 tributions. certain lands for the benefit of the 10:00 a.m. 2221 Dirksen Building M1lle Lacs Band of the Minnesota Banking, Housing, and Urban Affairs Chippewa Indians. International Fina.nee Subcommittee DECEMB~R 5 5110 Dirksen Building 9:00 a.m. To hold hearings to examine U.S. trade Commerce, science, and Transportation DECEMBER 11 and technological competitiveness To hold joint oversight hearings with 9:30 a .m. with other industrialized countries, the Subcommittee on Energy Re- Select on Small Business focusing on a report by the Interna­ . sources and Materials Production of To hold hearings on the structure of the tional Trade Commission on inter­ the Committee on Energy and Natural solar energy industry. national trade in integrated circuits Resources to review implications for 424 Russell Building relating to the electronics industry. future Outer Continental Shelf leas­ 10:00 a.m. 5302 Dirksen Building ing, relative to the oil spill at Cam­ Energy and Natural Resources peche, Mexico. Energy Regulation Subcommittee CANCELLATIONS 3106 Dirksen Building To receive testimony on the current price NOVEMBER 30 Energy and Natural Resources and supply situation for petroleum 10:00 a.m. Energy Resources and Materials Produc­ fuels. Appropriations tion Subcommittee 3110 Dirksen Building Agriculture and Related Agencies Sub­ To hold joint oversight hearings with DECEMBER 12 committee the Committee on Commerce, Science. 9:00 a.m. To hold oversight hearings on emergency and Transportation to review impli­ Commerce, SCience, and Transportation loan programs of the Farmers Home cations for future outer Continental Science, Technology, and Space Subcom­ Administration. Shelf leasing, relative to the oil sp111 mittee 1318 Dirksen Building at Campeche, Mexico. To hold hearings on the scope of laser Judiciary 3106 Dirksen Building research and technology, focusing on To hold hearings on pending nomina­ 10:00 a.m. the principal applications of lasers and tions. Rules and Administration future expectations from lasers. 2228 Dirksen Building Business meeting, to resume markup of 235 Russell Building 2:00 p.m. S. 2018 and S. Res. 281, measures to 9:30 a.m. Judiciary simplify and clarify the system by Select on Small Business To hold hearings on pending nomina­ which Senate committees are provided To continue hearings on the structure of funds for their operating expenses, in­ tions. the solar energy industry. 2228 Dirksen Building cluding staff salaries; and to consider 424 Russell Building other legislative and administrative DECEMBER 6 business. 10:00 a..m. 10:00 a.m. 301 Russell Building Banking, Housing, and Urban Affairs International Finance Subcommittee Banking, Housing, and Urban Affairs Select on Indian Affairs To hold oversight hearings to insure Business meeting, to mark up S.J. Res. To hold oversight hearings to review in­ ternational monetary policy relative equitable mortgage lending practices. 108, to validate the effectiveness of 5302 Dirksen Building certain plans for the use or distribu­ to the Eurodollar currency. 5302 Dirksen Building DECEMBER 7 tion of funds to pay judgments 10:00 a.m. awarded to Indian tribes; S. 1730, de­ DECEMBER 13 claring that title to certain lands in 8:30 a..m. Banking, Housing, and Urban Affairs New Mexico are held in trust by the Energy and Natural Resources To continue oversight hearings to insure United States for the Ramah Band of Energy Resources and: Materials Production equitable mortgage lending practices. the Navajo Tribe; S. 1832, authorizing Subcommittee 5302 Dirksen Building