19566 EXTENSIONS OF REMARKS July 13, 1987 EXTENSIONS OF REMARKS LONG-TERM CARE INITIATIVE ternatives, but it does rely heavily on the Mr. LUNGREN. If you can say it in 10 sec­ utilization of an IMA or health care savings onds, all right. account instrument. Dr. DREW. I can say it in 10 seconds. Is the HON. DAVID DREIER It seems to be, if I may take this opportu­ clock running? We could take the similar OF CALIFORNIA nity, to be the most viable form of carrying notion of a long term care IRA and not use IN THE HOUSE OF REPRESENTATIVES through the private sector initiative. it to build up a total amount of accumulated Monday, July 13, 1987 Mr. LUNGREN. The concern I have is that I reserves, but we could link up with the in­ have got people in my district who feel surance industry and say, look, let's build up Mr. DREIER of California. Mr. Speaker, as strongly the way you do, as to the private a cumulative amount, give people a tax the House begins consideration of misguided sector, and the encroachment of the federal credit for a fixed number of years and then legislation to saddle elderly Americans with a government. They are either of the baby let them build up money into an IRA or prohibitive tax increase to pay for catastrophic boom generation or they're parents of the health care savings account and use that baby boom generation and they are now health care benefits, I want to bring to the at­ money, that pool fund to purchase an annu­ being confronted with the tremendous pros­ ity from the insurance industry, and pay for tention of my colleagues some private sector pects of health costs. They don't know a the premiums, the policy. There's another alternatives that were offered during an April way out and they're basically saying, Con­ option, but again each of these require a 30 Republican Study Committee hearing on gress of the United States, throw me a life­ holding company or some mechanism that catastrophic and long-term health care protec­ line and save me. I don't care what it is, just would take care of those who cannot afford tion. Today, my colleagues PHIL CRANE and make sure I'm taken care of. to pay for this care. FRENCH SLAUGHTER have presented some of Dr. DREW. This would be an approach, Mr. DREIER of California. Thank you very sir-an initial approach to begin to phase much, Doctor Drew. the comments made by expert witnesses at this thing in and give people an option. the hearing. I want to submit for the RECORD Now, I would like to call on my colleague, Mr. LUNGREN. You predicated part of this French Slaughter for a question. some questions, and subsequent answers, on the statistics that are presently avail­ Mr. SLAUGHTER. I am very much interested that arose as a result of those recommenda­ able, I think you said 5 percent of those in your proposal, but I gather from it tions. would be utilizing the nursing homes. though that those who would be making the Mr. DREIER of California. Thank you very Dr. DREW. Yes, although I would like to investments in to individual medical ac­ much, Dr. Drew. We appreciate the testimo­ again qualify that, typical academic back counts say, would, in effect, indirectly be ny and I apologize. Chairman Volcker was pedaling. Five percent of the elderly popula­ paying the cost to provide a net coverage to testifying downstairs before the Banking tion, at anyone point in time, are in nursing the people who did not use that mecha­ Subcommittee on which I serve and that is homes, only 5 percent. However, that is age nism? why I had to leave. graded. As you move up the age scale, those Dr. DREW. Yes, sir, you're correct. It's I see that we have been joined by two of people who are 65 plus, those people who going to have to be some fund set aside for my colleagues, a new member of Congress, are 85 plus, the probability or the percent­ that and the question is, what is the best age increases to 23 percent, so while you Cass Ballenger of North Carolina and my may feel confident that my chance of being way to do that. Should we do that through friend, Dan Lungren from California. in a nursing home is one in 20 at age 65, taxes, which is certainly one way to do it or We are under time constraints but I would when you become 85, your chances drop should we do it through this investment in­ like to ask my colleagues if they would like down to 1in4-1 in 5. strument. to take a moment and ask any questions of Mr. LUNGREN. And as the older element of Mr. SLAUGHTER. Well, I think it's a very in­ the panelists. Dan. those over 65 become the larger proportion teresting proposal. I would like to mention We recognize on the Study Committee by of those over 65, a larger percent age of the though, as far as the proposals that have seniority and, of course, the chairmanship total elderly would be- been made for health care savings accounts of the Republican Study Committee certain­ Dr. DREW. In nursing homes. and individual medical accounts and so on, ly should entitle you to ask questions first. Mr. LUNGREN. In nursing homes. one virtue it has for the people at the lower Mr. LUNGREN. Doctor Drew, you have pre­ Dr. DREW. And if I might also state, that end of the economic scale is that it will keep sented a very intriguing proposal here. How is directly related to the cost of this care. Medicare solvent and will be able to pay the would you see this proposal phasing itself in Why? Because those people who become benefits provided by law. If we don't do with the existing private sector approaches older require higher levels of care and we something, that's not going to be possible that are already available, the various insur­ will have more of them. either, so there is a very valuable benefit to ance-even with their shortcomings, the Mr. LUNGREN. I visited a nursing home in people at the lower end of the scale in this ones that are presently in existence, do they my district and I think in the 15 years, approach that we have put into legislative somehow complement your approach or do when it was first in existence, the average form. they wither and die as far as this particular age was somewhere between 69 and 70 and Dr. DREW. Again, if I may, Congressman, program? when I visited it recently, I believe, the av­ my research has indicated that of all the Dr. DREW. No. As a matter of fact, one of erage age was 81. trade offs in the cost and benefits of all the things that we worked on very exten­ Dr. DREW. Yes, and it will continue to go these alternatives, that that one, with all sively in this approach was to try and inte­ up. deference to the one you gentlemen have grate all the financial institutions who Mr. LUNGREN. In a 15 year period of time come up with, I think is clearly the closest would be selling these instruments. Our they have had the average age go up 11 to addressing the major issues to the private only concern was if you try to sell a private years. And, you're right, in terms of the ne­ sector. Thank you. sector, you have a private sector solution, cessity for care increasing as well. Mr. DREIER of California. Thank you very how do you accomodate this lower end of Dr. DREW. The dilemma, of course, was much. the market. So, to the extent that these in­ how to reconcile these private sector alter­ Mr. LUNGREN. Mr. Chairman, I was just surance companies, banks, whomever would natives with this criticism that I think that struck by the fact that we are confronted sell these instruments, these IRA's or IMA's we're all going to confront, you know, some with problems in most states. I know in or whatever you want to call them, health how that we are pernicious, we're evil, we California, with some people who are not in­ care savings accounts, the critical compo­ don't have any concern for the elderly, for surable under normal circumstances for pur­ nent of this would be to set up-it would those who cannot afford these alternatives, poses of driving a car and we could have set have to be a joined organization, kind of a and I think there are mechanisms in the up a system where the state actually pro­ holding company. private section to do that, if we construct vides the insurance, but we do in California, I have an extensive outline of this propos­ these holding accounts-these holding com­ as many other states, is we require the in­ al and how this would work in detail with panies with this notion of an aggregate ac­ surance companies to, in effect, take a cer­ me today. I would be happy to share it with count. It's just an alternative. It's an illus­ tain percentage of those people, so we, in es­ you, but in view of the time, I did not do it. tration, if you will. There's another one that sence, the good drivers, do pay for the It would not supplant the private sector al- is very very brief. I can say it in 10 seconds. poorer drivers and maybe that's kind of a

e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. July 13, 1987 EXTENSIONS OF REMARKS 19567 model we ought to, at least take a serious all are because we may be thrown out of munities a social catastrophe. Today the look at as we approach that problem. this room and so the exigencies here are frequency of these social pathologies in the Mr. DREIER of California. That certainly greater than they have been. So we would Black community have increased by a factor happens in a wide range of areas and the appreciate it very much, gentlemen, if you of three. Banking Committee, we're looking at strong could possibly keep your testimony as Interestingly, the trend toward the failure institutions lifting up the weaker ones, it's cogent as possible and then we will proceed of families to form accelerated during the happened all the way across the board. Go with questions. period when the nation was committing an ahead French. Mr. Slaughter, do you want to introduce increased portion of its national wealth to Mr. SLAUGHTER. I have just one more ques­ your constituent here? helping the most disadvantaged. In 1959, 23 tion. Mr. SLAUGHTER. I certainly do. Mr. Tabak percent of poor families were headed by fe­ Ms. Van Gelder, with insurance compa­ is the Administrator of Annaburg Manor males. By 1982, this figure was 48 percent. nies, do you know whether any of the insur­ Nursing Home in Manassas. He is also con­ This represents an unprecedented destruc­ ance companies are looking seriously at the nected with a home for the aged there and tion of families. possibility of people being able to convert has served on a number of study committees Why has this happened? What took place their life insurance and use the value of within the industry on long term care, so he over the last twenty years that contributed their paid up life insurance for medical is well qualified to speak to us this morning. to this? I think that over the last twenty care? years, in a well-intentioned effort to help Ms. v AN GELDER. I think some of the com­ poor families, there is evidence that we have panies have shown great interest and the WELFARE REFORM encouraged self-defeating patterns of behav­ Office of Personnel Management in their ior that destroy poor families and under­ announcement of such an option, it's a com­ HON. WILLIAM E. DANNEMEYER mine the acquisitions of character traits petitive industry and in a trade association, OF CALIFORNIA most likely to lead them out of poverty. Re­ it's often difficult because you're the last to search clearly shows that character traits know. They don't want to tell the people, IN THE HOUSE OF REPRESENTATIVES and work habits make a difference in escap­ where you're in a position like I'm in, so Monday, July 13, 1987 ing poverty. their competitors don't know. I know there Mr. OANNEMEYER. Mr. Speaker, I com­ A recent study by the National Bureau of is a lot of interest though. Economic Research compared minority Mr. SLAUGHTER. Thank you. mend the following article by Gary Bauer to youths who were able to find work with Mr. DREIER of California. Now, I would my colleagues: those who were unsuccessful. The survey like to call on Mr. Ballenger who has a ques­ I do not think, nor does the working group found a significant correlation between such tion. I headed believe, that there is any doubt things as church-going, right attitudes and Mr. BALLENGER. Ms. Schofield, I was read­ that poverty and weak family life is related. aspirations in enabling youths to escape ing on your Page 3 about the plan that you But there is a common misconception about inner-city poverty. In fact, church-going re­ all have, it says: "Our plan is fully portable. which is the cause and which is the effect. duced socially deviant activities such as Premiums are level and determined at the Some have asserted that poverty leads to crime and drug use and increased school at­ age of purchase." And then Dr. Drew raised family breakup. That was not the statistical tendance and employment. In addition, sev­ the question in his statement, and when you experience of this country during the Great eral analyses of this study came to the fol­ say "premiums are level and determined at Depression, however, and it certainly does lowing conclusions or findings that I think age of purchase," do they increase as time not explain why our worst period of family are the most depressing if you are a public passes? dissolution coincided with a period of tre­ policy analyst looking at this area. Ms. SCHOFIELD. No. If you buy it at age 30, mendous prosperity. I believe, and our work­ Persons whose families are involved with for example, and it's $17 .00, it's like whole ing group believes, that welfare contributes major public programs for the disadvan­ life insurance, it stays $17.00 for the rest of to the failure to form the family in the first taged do worse in the job market. Youth your life. Whatever your original purchase place by enabling the creation of family from welfare homes with the same family price is, that's the level-it's level and it fragments and households headed by moth­ income and other attributes as those from stays that way for the rest of your life. ers dependent on public charity. And that non-welfare homes do far worse in the job Mr. BALLENGER. Does the health of the in­ process, the easy availability of welfare in market. Youths living in public housing dividual who takes out the insurance have all of its forms, has become a powerful force projects do less well than youths living in an effect as to whether you sell it to him or for the destruction of family life through private housing, even if you hold all other not? the perpetuation of the welfare culture. factors constant. Ms. SCHOFIELD. We will do underwriting. One can only imagine what more could The relationship of poverty and family is Certainly we won't sell a policy to somebody happen to low-income intact families if the most easily seen when looking at the status who is already in a nursing home, just as we centrifugal force of public assistance were of America's children. For children in this don't sell flood insurance or fire insur­ applied to them in the same manner that it country, the key determinant of poverty is ance-- has been applied to other groups in our soci­ whether or not they are in an intact family. Mr. BALLENGER. In other words, do they ety. Between 1960 and 1985, poverty among chil­ take a physical of some sort? No one disputes the fact that changes in dren in two-parent families decreased by Ms. SCHOFIELD. No. We have a question­ family composition have had a crucial effect almost half. Among minorities, intact fami­ naire. We just ask a one page questionnaire on poverty rates during the last ten years. If lies have now attained incomes much nearer and do underwriting based on that. the rate of family fragmentation had not in­ the national average. But at the same time, Mr. DREIER of California. Thank you very creased, there would have been 4.2 million the percentage of children living in female­ much, Mr. Chairman and thank you all for households below the poverty level in 1980 headed families more than doubled. It is your excellent testimony. We are, as I am instead of the 6.2 million that were actually this factor, not economic trends, not lack of sure those of you who have seen the sched­ in poverty then. For Black families, the pov­ compassion, not official unfairness, that is ule can see, we're running quite a bit behind erty rate adjusted for this factor, would at the root of child poverty in America. The but we have some extraordinarily patient have been 19.9 percent, a full 9 points lower formation of households without a bread­ health care providers who have endured all than it actually was. For white families, the winner, usually through illegitimacy, often of our questions and listened to all of the adjusted poverty rate would have been 5.2 through desertion: this is brutal fact. Only testimony, so now I would like to call on percent, about 2 points lower than the pub­ one-fifth of our children are in single-parent them. lished estimate, if you adjust for this factor families, but they make up one-half of all First, Mr. Harley Tabak who is the Ad­ of family breakup. children in poverty. Births out of wedlock, ministrator of the Annaburg Manor Nursing I believe that it is clear that poor Ameri­ as a percentage of all births, increased more Home of Manassas, Virginia, a constituent cans, particularly minorities, have become than 450 percent in just thirty years. For of Mr. Slaughter's. Dr. Bedford Berrey who the principal victims of the new relativism whites, the rate went from 1. 7 percent to 10 is a member of the Cobra Task Force on in family values. Back in 1965, Rev. Martin percent in just thirty years; for nonwhites long term care policies, Midlothian, Virgin­ Luther King, Jr. affirmed that the nuclear from 16.8 percent to 48.5 percent. We know ia. Dr. George Ross Fisher, practicing physi­ family, the group consisting of mother, that women who receive Aid to Families cian, Chairman, Council of Medical Eco­ father and child, was the main educational with Dependent Children benefits when nomics of the Pennsylvania Medical Society, agency of mankind, and in his words, "the they are less than 25 years old remain de­ from Philadelphia, Pennsylvania. foundation for stability, understanding and pendent on AFDC for long periods of time. We thank you all very much. I have asked social peace on which the whole of society In fact, 70 percent receive AFDC for at least the others to try and consolidate their testi­ rested." Even in 1965, King labeled the pre­ five years; more than one-third get it for at mony, if possible, to 5 to 7 minutes. They vailing levels of divorce, illegitimacy and least ten years. Raised in an environment in are not under the same constraint that you female-headed families found in Black com- which fathers do not provide for their 19568 EXTENSIONS OF REMARKS July 13, 1987 young and dependency on government is as­ I urge my colleagues to read the following People from all levels of government, the cor­ sumed, few children will develop the group editorial which provides a good synopsis of porate and private sectors, the arts communi- skills of self-sufficiency or even the concept of personal responsibility. Young men will the Sri Lanka situation. ty, and hundreds of dedicated volunteers have not strive to be good providers, and young CFrom the Boston Globe, June 19, 19871 formed a partnership to create what has women will not expect it of their men. BLOODSHED IN SRI LANKA become one of the finest and largest arts fes- Family breakdown becomes cyclical; out-of­ The outside world has paid scant atten- tivals on the eastern seaboard. wedlock birth becomes cyclical; poverty and tion to the suffering of defenseless civilians · Since Artscape began 6 years ago, in the dependency become cyclical. The culture of in Sri Lanka. While governments and opin- Mount Royal corridor, Baltimore has seen the poverty grows. ion makers fret over the carnage on the expansion of the Maryland Institute College of With those as some main thoughts, let me Iran-Iraq battlefields, in Lebanon, or Cen- Art, the renovation of the Lyric Opera House summarize what I think are the main issues tral America, Tamil plantation workers are that we face in welfare reform, with an eye bombed and strafed by the Sri Lankan gov- and the opening of the Meyerhoff Symphony on its relationship to the family. First, the ernment of President J. R. Jayewardene. Hall, in that area. It is a most fitting setting for current welfare system discourages work The bloodletting in Sri Lanka comes as a the festival's rich variety of artistic experi­ and self-reliance. It seduces too many Amer­ consequence of decades of discrimination ences. icans to a life to dependency. In too many against the Tamil minority by the Sinhalese And so, to celebrate the sixth anniversary of cases, welfare offers more usable income Buddhist majority. Sinhalese governments Artscape, I ask my collegues to join me in ac­ than many entry-level jobs. Second, in spite dispossessed, disenfranchised and deceived knowledging and commending the Baltimore of John F. Kennedy's goal in 1962, which the Tamils. was that welfare programs ought to stress While refusing to permit the predomi- Arts Festival, Inc., and Artscape '87 for foster- the integrity and preservation of the family nantly Hindu Tamils to have provincial au- ing an appreciation of the arts and for inspir­ unit, today's welfare system makes a mock­ tonomy, the government imposed Buddhism ing interest and participation in this essential ery of that goal. It destroys poor families. In as a state religion, and Sinhalese as the offi- part of the American culture and our artistic too many cases, welfare benefits increase cial language. Ethnic quotas were set at the heritage. when parents divorce or never marry. There island's sole university, drastically curtailing is little incentive for young women to marry educational opportunities for young Tamils. the father of their children, particularly if The Tamils' sense of oppression and futili­ WARNING-OIL SHORTAGE these young men have poor long-term job ty has engendered an extremist secessionist LOOMS IN THE FUTURE prospects. And, finally, public money is movement. Terrorist militants comprise but wasted. Much of what Americans willingly a tiny fraction of the Tamil population-.01 spend on welfare never reaches the poor, be­ percent, according to the government's sta­ HON.RONMARLENEE tistics-and the extremists have become as cause it is distributed inefficiently or, in OF MONTANA many cases, goes to individuals already much a menace to Tamil moderates as to above the poverty lines. the Sinhalese majority. Yet Jayewardene IN THE HOUSE OF REPRESENTATIVES I think that many in Washington would has used the terrorist threat as a pretext for Monday, July 13, 1987 rather not focus on these basic facts. They his brutal military assault on unarmed would rather insinuate that the only thing Tamil civilians. Mr. MARLENEE. Mr. Speaker, a distin­ that is wrong with the welfare system is If the bombing and the strafing continue, guished petroleum engineer by the name of that it has been underfunded by a greedy and if Jayewardene persists in trying to ex­ Howard R. Lowe-a former Montana resi­ White House. However much such rhetoric punge the Tamil demand for civil rights and dent-has issued a frightening warning that may be politically advantageous, I believe limited political autonomy, Indian Prime Minister Rajiv Gandhi may be forced to in­ should be read by every Member of Congress. that it ill serves the poor on whose behalf it Mr. Lowe looks at the future and sees trouble, is spoken. The battle is not between the tervene to placate the 50 million tamils who compassionate and the greedy, but between live in India. Regional intervention could trouble in the name of an international oil those who believe that basic reform is then lead to superpower intervention, as shortage that could lead to worldwide catas­ needed and those who still resist that fact. both Washington and Moscow appreciate trophe. Any welfare reform must be directed in the strategic value of Sri Lanka's deep­ Mr. Lowe, an oil expert who lived in Saudi such a way that we are not inadvertently water ports. Arabia in the 1940's as a geologist, has writ­ robbing the poor of the motivations, aspira­ For both moral and strategic reasons, ten a brilliant article entitled "Oil Glut" which tions, family loyalties, values and character Washington should use its influence in Sri Lanka to end the bloodshed. A first step outlines our energy policy folly of the past, traits that are ultimately the only engine and suggests if that folly is repeated in the that drives people out of poverty. would be for Jayewardene to permit the Red Cross to enter the war zone. Then the future a possible armed confrontation may be central government should be encouraged to a reality in the 1990's. BLOODSHED IN SRI LANKA implement a federal constitution that would Here is a sampling of excerpts from Mr. preserve the unity of the nation while Lowe's masterful article: HON. JOSEPH P. KENNEDY II granting partial autonomy to the Tamils. The Western industrial powers are on the OF MASSACHUSETTS brink of disaster unless they solve their long ARTSCAPE term energy problems. Time is running out; IN THE HOUSE OF REPRESENTATIVES perhaps only three or four years are left. An Monday, July 13, 1987 oil shortage of enormous proportions is in HON. KWEISI MFUME the making•••. Mr. KENNEDY. Mr. Speaker, I would like to OF MARYLAND The real blame lies with American politi­ make my colleagues aware of the present Sri IN THE HOUSE OF REPRESENTATIVES cians and diplomats, past and present, who Lankan situation. The editors of the Boston have mishandled and miscalculated almost Globe express dismay at the lack of attention Monday, July 13, 1987 every Middle East situation since the end of paid to the suffering and bloodshed of Tamil Mr. MFUME. Mr. Speaker, in 1982, the Bal­ World War II• • •. civilians in that nation. timore Arts Festival, Inc., held its first celebra­ Those who know the Middle East and its We are a nation which possesses solid be­ tion of the arts, called Artscape. The purpose people invariably express the opinion that the U.S. diplomat corps is unimaginative, liefs in representation and equal rights for all of the 3 days event was to bring to Baltimore, and exhibits only a superficial knowledge of citizens of a democracy. Therefore, I believe the highest quality visual and performing arts. Islam and the native people. Few diplomats the United States should become more aware Over the past 6 years, this annual event has can speak Arabic • • •. of the brutality of civil war in Sri Lanka. In ad­ provided the citizens of Baltimore with the op­ During three Presidential administrations dition, we should consider this newspaper's portunity to explore and enjoy the finest in in­ starting in 1984, an uncomprehending Con: suggestion and urge the Sri Lanka Govern­ vitational and juried art exhibits; classical, gress, based on the advice of emotionally ment to halt human rights violations and allow modern, and ethnic dance; classical, jazz, motivated environmentalists and conserva­ the International Red Cross to enter the gospel, and country music; traditional and tionists, passed one piece of misguided legis­ lation after the other directed at the petro­ nation. The violence in Sri Lanka is unneces­ avantgarde theatre; film, poetry, arts, and leum industry. Most of the members of Con­ sary and a mutually acceptable political situa- · crafts; and children's activities. gress did not realize what long term implica­ tion must be facilitated in order to prevent fur­ Artscape is also significant because it is a tions these actions might have on America's ther bloodshed. project that involves the entire community. future• • •. July 13, 1987 EXTENSIONS OF REMARKS 19569 The U.S. government's misguided, and State. During this time Mary continued her vol­ The Consumer Product Safety Commis­ sometimes irrational, energy policy actually unteer work for the Red Cross as a "Grey sion is going after companies that created the 1979 energy shortage • • •. Lady." Her duties as a "Grey Lady" were to sell components of banned fireworks. Their The coming crisis will result from inad­ set up EKG's for female cardiology patients, task has become more difficult as companies equate oil supplies to meet world demand, set up new distribution networks. The evolving from the inability of oil producing help with records, and set up the patients Bureau of Alcohol, Tobacco, and Firearms states, OPEC and non-OPEC alike, outside room for the doctors. In 1962, as a single is concentrating on those who mix the Middle East to maintain their oil re­ parent, Mary moved to San Pedro. the chemicals to make the fireworks. In a serve bases and productive capacities. In As a parishioner of St. Peter's Episcopal way, the ATF's task is simpler: they often other words the Middle East countries will Church, Mary is co-chairman of the Reception find clandestine factories when the factories control oil prices and supplies. The next Committee. She served two terms as a vestry explode. shortage will not be contrived • • *! member and taught Sunday school for many Both agencies have met with considerable The pattern of America's energy future is years. On occasion she substitute teaches. success in the courts over the last two years. set, and only drastic measures can change it. They are currently working on cases, and The Oil and Gas Journal predicts an energy Other past volunteer work has included the one in particular, that could cut off the crisis of serious consequences by 1991-1992 P. T .A. and the Boy Scouts of America. largest supplier of illegal chemicals, which .. •. Presently, Mary's volunteer activities consist "will affect a large number of manufactur­ The major world powers will be jockeying of being treasurer for the Seamen's Church ers and assemblers," says Thomas Lambert for position within the next three to five Institute of L.A., a member of the board of di­ at the AFT. years in an attempt to obtain preferential rectors for the YMCA, advisory board of Sal­ Successful prosecutions and injunctions treatment from the only source capable of vation Army, board of directors of San Pedro against the sale of banned fireworks is satisfying their petroleum requirements­ Peninsula Chamber, board of directors of the upping the ante for dealing in illegal fire­ the Middle East. Ominously, they will be works, says Bruce Zoldan, president of B.J. trying to buy the same barrel of oil • • •. women's division San Pedro Chamber, and 2 Alan Fireworks Company, one of the largest years as president of the women's division of Mr. Lowe concludes his article thus: distributors of legal fireworks. The govern­ the San Pedro Peninsula Chamber of Com­ ment means business," he says, noting that America, the home of the free and the merce. Mary worked over 21 years for Motor many people have received "$10,000 fines brave. America the home of free enterprise, Hotel and Restaurants, and is currently work­ and five years in prison." And it's having an blessed with the world's largest reserves of effect in the marketplace, he says. "I don't fossil fuel committed national suicide. Her ing for N.A.R. Properties. Mr. Speaker, Mary Jo Walker has truly think a day goes by when someone doesn't realm as the greatest power the world has call up and ask if we make M-80s" or other ever seen lasted just over two centuries. made San Pedro a better place to live and illegal products. She, like Rome and other great nations of work. My wife, Lee, joins me in congratulating Still, fireworks injuries are on the rise, history, leaped into oblivion. Mary on her many accomplishments. We wish which is why the government is trying to Mr. Lowe's warning should be heard loud her and her son, James, happiness and all the get at the small group of distributors and and clear throughout the Halls of Congress best in the years ahead. manufacturers running the show. According and the White House. It is uncertain at this to the CPSC, 12,600 people were injured by time which national magazine will publish Mr. fireworks last year, up from 8,300 in 1983. FIREWORKS AT THE CONSUMER Getting those people has been frustrating Lowe's article, but when the article is made PRODUCT SAFETY COMMISSION for the CPSC, says lawyer John Rogers. public America will take notice and demand "We catch them, we get an injunction, they from Congress a comprehensive and positive go out of business, then they appear the reversal of energy policy to prepare us for the HON. WILLIAM E. DANNEMEYER next year under a new name," he says. But 1990's. OF CALIFORNIA the overall effect has been to reduce the We need to utilize our energy wealth, and IN THE HOUSE OF REPRESENTATIVES number of sellers, he adds. we must protect ourselves from an interna­ Monday, July 13, 1987 After a series of successful injunctions against distributors, such companies are tional oil crunch. Mr. DANNEMEYER. Mr. Speaker, as the trying more complex ways to conceal their ranking Republican member of the Energy sales. Instead of selling the fireworks, they A CONGRESSIONAL SALUTE TO and Commerce Subcommittee on Commerce, are forming two or more companies and sell­ MARY JO WALKER Consumer Protection and Competitiveness, ing components. For example, the CPSC al­ which has oversight over the U.S. Consumer leges that two mail-order companies in Logan, Utah, were together selling banned HON. GLENN M. ANDERSON Safety Commission [CPSC], I am happy to products like M-80s. Square Lake Enter­ OF CALIFORNIA see that CPSC's efforts in protecting the prises was selling the chemicals and instruc­ public from unsafe consumer products is get­ IN THE HOUSE OF REPRESENTATIVES tions to make banned fireworks, and Keller ting some positive publicity. · Sales Company was selling the tubes and Monday, July 13, 1987 A recent July 3, 1987, Christian Science fuses. When CPSC investigators requested Mr. ANDERSON. Mr. Speaker, I rise today Monitor press account points out that the products from one of the companies, it sent to pay tribute to Mary Jo Walker, who was CPSC and other Federal agencies are working along a catalog for the other company's successfully in enforcing laws and regulations product. honored at an installation ceremony of the Thus the US attorney handling the case women's division of the San Pedro Peninsula on illegal fireworks that pose a threat to con­ for the CPSC hopes to show an association Chamber of Commerce dinner on June 19, sumers and, in many instances, to children. between the two and thus a "conspiracy" to 1987. CPSC Chairman Scanlon as well as CPSC sell illegal fireworks. The case will be heard Mary Jo Walker was born on December 31, Commissioners Dawson and Graham are to later this month. US attorney Brent Ward 1931, in Minneapolis, MN and grew up in Min­ be commended for their activities in this area. says he believes the companies will agree to netonka Beach, MN. Mary first became inter­ I commend the Christian Science Monitor provisions making it impossible for the two ested in nursing as a junior in high school, news clip to my colleagues at this time. to sell the products. The CPSC has three FEDERAL AGENCIES TAKE AIM AT MAKERS AND other such investigations under way. and worked as a volunteer nurse's aide at The ATF is conducting more than a dozen Wayzata Hospital. After graduating from Way­ SELLERS OF ILLEGAL FIREWORKS investigations against people who buy the zata High School, Mary was accepted to both chemicals and then put them together. As Kahler School of Nursing and St. Joseph's WASHINGTON.-This year's Fourth of July opposed to the targets of CPSC suits, which School of Nursing, but could not attend due to is bringing a government fusillade against are generally civil suits and involve a fine, an ongoing illness. She became a flight at­ people who manufacture and sell illegal the ATF brings criminal charges involving tendant for 5 years with Northwest Airlines, fireworks. jail sentences. That, in part, is because of but due to her strong desire and commitment Law enforcement officials have launched the danger involved with manufacturing the a two-pronged attack to snuff out the use of fireworks-a danger often unknown to the to helping others, Mary became a volunteer fireworks like M-80s, cherry bombs, and people hired to do the manufacturing. with the Red Cross. silver salutes, which make an explosion but "It's only a matter of time before the fac­ In 1958, Mary was married to an army offi­ cannot be seen. These "bombs" have result­ tories blow up," says John Conkling, execu­ cer and had one child, James. Their military ed in scores of deaths and more than 30 tive director of the American Pyrotechnics travels took them to Texas and Washington blown-up factories in the last eight years. Association. 19570 EXTENSIONS OF REMARKS July 13, 1987 Fireworks manufacturers go to remote If a farmer owes the Government $25 and basic fairness in the way Government handles areas of the country where unemployed is 2 days late in paying, the Government payments to farmers. workers are looking for money-the South­ starts charging the farmer interest. It is only east is the current favorite, says Dr. Con­ fair that the Government now pay farmers in­ kling-and hire these inexperienced people PROJECT EXCELLENCE to mix chemicals. The chemicals are so un­ terest on these late payments. USDA has the stable that static from clothing can light a authority to do so, but has indicated that it will spark that explodes an entire building; in not. I think this is wrong. HON. MERVYN M. DYMALLY fact, professionals mix them without any Let's make no mistake about it. Congress is OF CALIFORNIA clothes on. to blame for this long delay. We failed to ap­ IN THE HOUSE OF REPRESENTATIVES An explosion last year in San Francisco propriate enough money for the Department destroyed an industrial park the size of a Monday, July 13, 1987 city block, killed nine people, injured 16, of Agriculture last year, and we have failed to act quickly on this supplemental appropria­ Mr. DYMALL Y. Mr. Speaker, Mr. Carl and caused $10 million in damages. Since Rowan, the noted journalist, has initiated a 1979, the AFf has investigated 32 illegal tions bill. To make matters worse, this is the factories that have blown up. One in Ten­ fifth time in 2 years this has happened. program called Project Excellence "to inspire nessee four years ago gave ATF investiga­ It is up to Congress to solve the problem, black youngsters to learn to speak and write tors their biggest break yet. They prosecut­ and that's why I've introduced this bill. Start­ the English language." ed the owner and got information to pros­ ing on October 1, 1987, if USDA is ever late in I believe that this is a significant contribution ecute 20 other manufacturers. making payments again, for whatever reason, Mr. Rowan is making to this whole question of Given the enormous profit margins for communication with young people, and I bring banned fireworks-M-80s cost a few pennies they will have to pay interest to farmers who have been inconvenienced by the delay. it to the attention of the Members, and include to make and sell for a dollar-prosecutors it for the CONGRESSIONAL RECORD: believe that people will continue to find new All contracts authorized under the Agricul­ ways to avert the law. tural Act of 1949, as amended, which includes A CALL TO "PROJECT EXCELLENCE" all of the commodity programs, and all con­ tracts related to the Conservation Reserve Rarely during my 39 years as a journalist FARMERS DESERVE INTEREST have I been as proud as I am now to report ON LATE PAYMENTS Program, would have to include a precise pay­ ment date. USDA could avoid interest by that my black colleagues in the profession have responded magnificently to my recent HON. BYRON L. DORGAN making payment within 1O days of the pay­ call to inspire black youngsters to learn to ment date, but after that interest would accrue speak and write the English language. OF NORTH DAKOTA from the contractual payment date. Every black TV anchor person, corre­ IN THE HOUSE OF REPRESENTATIVES This will apply to situations when payments spondent, TV or newspaper executive, Monday, July 13, 1987 are late due to administrative failures as well middle-grade reporter or editor I have been able to contact has said: "Tell me what I Mr. DORGAN of North Dakota. Mr. Speaker, as delays caused by a lack of funds. This bill will not cost any more money than must give." And the media superstars have last week, I introduced H.R. 2908, the Agricul­ made it clear that they will give not just tural Prompt Payment Act of 1987, to provide would normally be the case if USDA made all their money, but their presence at schools that farmers who have contracts with the Gov­ payments promptly. If all payments were paid to hand out $4,000 prizes to high schoolers ernment receive the same consideration that promptly, obviously there would be no interest who believe there is a pot of gold at the end other contractors get when the Government penalties and this bill would cost nothing. of a well-written article, as well as in the fails to make its payments promptly. When the CCC is late making payments, it end zone of a football field. I'm sure most of my colleagues are aware does not have to borrow from the Treasury We are going to try to convince black and thus realizes savings on its own interest teenagers that becoming a marvelous user that since ,May 1 the Commodity Credit Corpo­ of the language of William Shakespeare, ratio1;1 o( the Department of Agriculture has expense. This bill would simply transfer these Bryant Gumbel and Bill Cosby has nothing bee ~out_of money and unable to make pay­ interest savings to farmers, so again there is to do with proving either that you are ments to farmers. We recently broke the con­ no more expense than would normally be the "black" or that you want to be white. We gressional logjam that was blocking the sup­ case had payments been made promptly. want youngsters to understand that speak­ plemental appropriations in conference and Let me finally point out that most other busi­ ing and writing well only prove that you sent the bill to the President for his signature. nesses that sign contracts with the Govern­ know where the routes to success, the levers of power, are in this country. As of this morning, he still hadn't signed it, ment already benefit from this protection from late payments. The Prompt Payment Act, Washington School Superintendent Flor­ and farmers are still waiting for their pay­ etta McKenzie and I have met and agreed ments. passed in 1982, requires agencies to pay in­ on a program called Project Excellence. The Farmers and grain elevators are owed terest penalties when payments are late by monies collected for Project Excellence­ money by the CCC for storage of grain and more than a few days. and there will be a lot- will go into the tax­ other commodities. Some cheese-processing Contracts with farmers have not been cov­ exempt D.C. Public School Foundation. plants are near bankruptcy because of the ered by these provisions because the Depart­ None of the money will go for salaries or funding delay. There are thousands of farmers ment of Agriculture has been clever in drafting any other kind of "overhead." the contracts so they do not come under the A committee composed of three or four who agreed to idle their land in the Conserva­ journalists, a school administrator, an Eng­ tion Reserve Program, with an agreement to provisions of the Prompt Payment Act. USDA lish teacher and a renowned teacher of share the cost of planting grass, but the Gov­ has also taken the position, contradicted by public speaking will select for prizes annual­ ernment hasn't lived up to its part of the deal. the General Accounting Office I might add, ly: Other farmers who participated in the dairy that the Prompt Payment Act does not apply A few youngsters who have excelled as herd buyout program have slaughtered their when the reason for late payment is a lack of writers and speakers. cows, thereby lading their source of income, funds. An equal number of youngsters who but have not received payment from USDA. This bill would remove all ambiguity on both have made the greatest progress in learning to write and speak. How can we expect them to feed their fami­ counts, and give farmers the same protection CC> High-achieving black high schoolers lies? that other businesses have when they sign from suburban counties as well as the Dis­ I've been getting a dozen calls every day contracts with the Government. I think our trict of Columbia. from farmers who want to know when they farmers deserve that much, after all they have We will be able to honor children from all are going to get paid. They signed contracts gone through these past 2 months waiting for school jurisdictions because leaders of a with the Government, and made financial payments owed to them. If we are going to couple of foundations and wealthy indivi­ commitments based on those contracts, and force farmers to wait beyond the promised diuals have telephoned me to say, "We'd they had every right to expect those payments payment date, the least we can do is reim­ like to give money to this undertaking." McKenzie says of Project Excellence: to be made on time. Now many have had to burse them for the interest expense they incur "Today too many young people believe that take out loans to cover their financial commit­ as a result of Government's failings. the obstacles to rewarding futures loom too ments, and of course, they are paying interest I ask my colleagues for their support on this large, and the journey may appear to lead on those loans. important legislation which would instill some nowhere. July 13, 1987 EXTENSIONS OF REMARKS 19571 "One of our most important missions is to cation is unfair to producers and consumers ity-the issue of whether Kuwait's plans to show our children that the trek is worth the nationwide. shuttle oil imposes any greater burden on the effort. This scholarship campaign can help My bill requires labeling on wholesale and to sound the call. By giving this support to United States Navy. The second aspect is the achieving students we can begin to convey retail meat or meat food products, whether it more important issue of the political implica­ to all children that their adults are behind be imported or domestic. I believe this provi­ tions of our protecting a much greater portion them with both encouraging words and sub­ sion removes concern that such a labeling law of Kuwait's oil output-a point that seems to stantive actions." imposes an unfair trade barrier given its appli­ have been lost in the hassle over the lesser Some self-styled experts on "blackness" cation on both imported and domestic produc­ issue. argue that the resistance of black teen-agers ers. I announced on our return that we had re­ to standard English "is a way of establishing In addition, the bill does not require the la­ ceived new information on Kuwaiti tanker themselves as black." beling of meat products at restaurants but Now there is the problem that Project Ex­ plans. The White House and State Depart­ cellence seeks to address. Kids who associ­ rather requires that meats received by eating establishments be labeled as to the country of ment have since said there was nothing new ate blackness with being inarticulate, being at all in what I said. That's interesting. It was unable to really read and write, being job­ origin. Such a provision allows the restaurant less, being hopeless are in desperate need of the choice of advertising as to their meat news to the United States Embassy in Kuwait. new definitions of "blackness." product's country of origin. It was news to the military command running Deprived black children do not need the And finally, my bill takes a tough stand the operation. But it wasn't news to the White destructive nonsense of adults, white or against those who knowingly continue to vio­ House. Is the White House once again con­ black, telling them that incompetence can late the labeling requirement by withdrawing ducting operational matters outside normal become a symbol of racial pride. Since no inspection services to those importers who channels? I will be generous and say that I newspaper, black-owned or white-owned, no radio or television station, no magazine or have been found to have committed a third expect what is really afoot is that the White advertising agency will pay anyone to dis­ violation of the labeling law. Such a provision House went into its damage control mode and pense "black English," where is black Eng­ sends a firm, fair and decisive message re­ sought to do everything it could to prevent my lish "useful, valuable, even beautiful," as a garding our intent. comments from having any impact on few deluders of black children are saying? Mr. Speaker, myself, farm organizations Wednesday's votes on reflagging. Some argue that we black journalists can't such as the National Cattlemen's Association Is the shuttle plan old or new? The White change a thing, because only the families of and the American Farm Bureau, as well as House is now saying, I am told, that only one black kids and their neighbors in their im­ consumer groups believe labeing laws are ship will be used to shuttle oil down the gulf poverished neighborhoods can get to them. long overdue. American consumers continue Well, I don't believe that. Nor does and that that isn't new. The staff of the U.S. McKenzie. Nor do my colleagues who are so to unknowingly purchase meat and meat prod­ Embassy in Kuwait was with the delegation prominent in journalism in the nation's cap­ ucts, assuming they are domestically pro­ when it met with the Kuwaiti oil minister and ital. We are going to prove that we can duced. My bill addresses this problem in an cabled a long message back to the State De­ make a difference, and that, once we do, we equitable fashion. Clearly the American con­ partment. The message commented: are going to provoke, or shame, proud black sumer and the American meat producer de­ journalists in other cities to rescue millions serve no less. On the frequency of transits and the use of black teen-agers from the peer group trap of KOTC tankers, the minister provided of defeatism. new information.... As recently as July l, THE PERSIAN GULF SHUTTLE­ KOTC operations officials told us that the AND ITS IMPLICATIONS FOR US 11 reflagged tankers would continue to MEAT LABELING LONG serve their normal destinations. OVERDUE HON. LES ASPIN In addition, the committee staff debriefed OF WISCONSIN the U.S. Embassy staff the night before we HON. TOM LEWIS IN THE HOUSE OF REPRESENTATIVES met with the oil minister and specifically asked OF FLORIDA about the possibilities of a shuttle operation. Monday, July 13, 1987 IN THE HOUSE OF REPRESENTATIVES We were told the Kuwaitis have often talked Monday, July 13, 1987 Mr. ASPIN. Mr. Speaker, a 12-member dele­ vaguely about sometime perhaps shuttling oil gation of Armed Services Committee mem­ with some of the 11 tankers, but that no such Mr. LEWIS of Florida. Mr. Speaker, today I bers has just returned from the Persian Gulf shuttle was currently scheduled. introduced legislation requiring country of after 5 days spent meeting with Americans Further, I point out that the Kuwaitis did not origin labeling on meat and meat food prod­ and Arab officials in Bahrain, Kuwait, Saudi tell us they planned to use only 1 of the 11 ucts, a measure I believe to be long overdue. Arabia, and Iraq. We learned a great deal on tankers as a shuttle. What they said was this. Currently, the labeling of meat and meat this trip-although the White House appears They planned to use the largest tanker, an food products sold in this Nation fails to pro­ confused on that point. ultra large crude carrier [ULCC], as a shuttle vide the American consumer and the Ameri­ In this the sixth in a series of speeches I can meat producer with the consideration they immediately; they expected "within a few have been making on the Persian Gulf, I weeks" to sign charter agreements for two are entitled. would like to review two aspects of what we American-flagged, very large crude carriers Under present law, the U.S. Department of learned about Kuwait's tanker plans. Kuwait [VLCC's] that they would immediately put into Agriculture [USDA] does require country of plans to run an extensive shuttle service shuttle service; they are looking at the charter origin labeling of imported meat. Unfortunate­ moving its oil shipments from its main terminal ly, the labeling requirement does not address at Mina al-Ahmadi in Kuwait to Khor Fakkan, of a third American-flagged vessel to use in the issue of imported meat which is proc­ just outside the Strait of Hormuz. There the oil the shuttle; and they are reserving the option essed or blended once in the United States. would be transferred from the shuttle ship to to use four of their soon-to-be reflagged prod­ According to the USDA, imported meat makes other vessels, which would carry the oil to its uct carriers-that is, tankers that carry refined up approximately 23 percent of this Nation's ultimate destinations. The shuttle will take oil products-on a shuttle. entire beef processing supply. Slightly more about 1O days round trip versus four or five So the White House is technically right than 50 percent of the imported beef is used times as much if the ship were going to when it says that only 1 of the 11 tankers will in sausages, hotdogs, chili, stews, soups and Europe. This means two things. First, a shuttle be used on a shuttle when the reflagging frozen dinners. Thus while we require such la­ ship will be in the Persian Gulf much more begins. But it might more accurately say that, beling, the interpretation of the law and its often than a nonshuttle ship, which could then in the immediate future, 3 of the 13 Kuwaiti contribution toward informing the consumer require much more escort service from the tankers under the United States flag will be on are minimal at best. U.S. Navy. Second, the use of the shuttle shuttle duty, and that the possibility exists that The American meat producer has invested means that Kuwait can move much more of as many as 8 of 14 Kuwaiti tankers under the much of his time and money to produce and its oil in American-flagged ships than previ­ United States flag will be used on shuttle promote a quality domestic meat product. ously anticipated. service. American meat producers are proud of their The first aspect is the one of lesser impor­ That's a jumble of technical facts. But what product and believe the lack of proper identifi- tance-but greater attention-getting capac- does it all mean? Really, it means two things. 19572 EXTENSIONS OF REMARKS July 13, 1987 First, it raises the possibility that more con­ Arabia in Tait last Monday, I specifically asked the Liberian flag vessel under Swedish charter voys will have to be run than the five monthly him if he was concerned that the Iranians, if that was attacked by the Iranians recently was round trips that have been planned over the they were denied the Kuwait option by our on the shuttle run from Mina al-Ahmadi to last several weeks. That could require more flag, might attack Saudi-bound vessels. He Khor Fakkan. U.S. Navy ships. This is a technical matter. It didn't pause an instant. He simply said, "No." As the reflagging begins, more customers can be easily resolved. We could, for exam­ He didn't explain. Perhaps he was simply are likely to gravitate to the shuttle. The more ple, delay the reflagging until more U.S. Navy overconfident. However, the fact that he re­ customers using the shuttle, the fewer unpro­ assets are in place. Or we could tell the Ku­ sponded so swiftly, when most of his state­ tected tankers sailing to Mina al-Ahmadi. This waitis that they will simply have to bunch ments were delivered carefully and slowly, raises the odds that an unprotected ship will more of their ship transits so that they are all hinted to me that this was something he had be attacked by Iran. Whereas before, a vessel confined to the planned five round-trip con­ already considered. Perhaps he has a deal hit by Iran might be 1 of 100 sailing to Kuwait, voys each month. There are a number of pos­ with Iran. It is no secret that Saudi Arabia and now it might be but 1 of 1O. With the odds of sible ways to address this technical matter. As Iran have worked very closely at the last two being hit rising, there is a certain inevitability chairman of the House Armed Services Com­ OPEC ministerial meetings, last December about a gravitation toward the protected shut­ mittee, I am watching this because of my con­ and last month. In both cases, the final OPEC tle. cern over the use of Navy assets. compromise was worked out by the Iranian When Kuwait asked us to reflag 11 of its This technical issue has gotten most of the and Saudi oil ministers while they met private­ tankers, we should have thought more about attention in recent days. But it really isn't the ly for extended periods. the implications, as I said in an earlier speech key issue that I think should be the focus of It may not be the easiest relationship-for in this series. The Kuwaitis have certainly our attention. example, last month it took 5 hours for the been thinking about it. And let me tell you, The second and more important point is two oil ministers to work out an agreement. forget those stereotypes about the desert that when we started the reflagging exercise But they did work one out. Clearly, there is a Arab in his burnoose. The men who run the we anticipated escorting about one-third of substantial level of serious cooperation be­ Kuwaiti oil industry are smart. That is the most Kuwait's oil exports. Virtually everyone who tween the two countries on oil policies. Per­ prestigious part of Kuwaiti society. It attracts looked at this issue seriously said, "No big haps there is some other component to the the best they have. And their best is very, deal." The Iranians have spent most of the Iran-Saudi relationship of which we are not very good. last several months attacking ships that called aware. Again, however, that is but speculation, When the Kuwaitis approached us asking to at Kuwait but did not fly the Kuwaiti flag. They albeit serious speculation. reflag 11 of their tankers, we should have could still do that. I cannot answer with any definitiveness the posed a rather basic question: Why would Here are the exact numbers covering the question: What will the Iranians do if most of they want protection for only one part of their period from last September-when the Irani­ Kuwait's oil exports are protected? I do know oil exports-especially when it was the part ans first began concentrating on Kuwaiti one thing with certainty: Iran will want to take that wasn't being hit? We failed to work that ships-through June 30. During that 10-month some action. It will not simply stop the tanker question. I suggest that the answer is now be­ period, 38 vessels have been hit by Iran. Of war because its favorite targets-unprotected ginning to emerge. The answer is that the Ku­ those, 29 were calling at Kuwaiti ports. Of the vessels bound for Kuwait-have disappeared waitis don't want us to protect a mere portion 38, 5 flew the Kuwaiti flag. Of the 5, 1, the Al­ from the seas. The challenge for us is to pre­ of their oil shipments. Funtas, is 1 of the 11 tankers to be flagged; 2 pare for that unknown future action and not Yet, while the answer is emerging, the others are among the 11 tankers that will be caught napping. White House doesn't even understand the retain the Kuwaiti flag; and the remaining 2 I need to go over some numbers to explain question. It simply wants to haggle over de­ were Kuwaiti-flag freighters. Kuwait has a mer­ how Kuwait might arrange to have all its oil tails. chant marine of more than 200 vessels. exports protected by foreign flags. Under the original plan, with the 11 re­ As one naval officer told our delegation PROTECTED TANKERS IN KUWAITI TRADE when he was asked what the Iranians would flagged tankers plying the same routes as before reflagging, we would have been con­ probably do in response to the reflagging: Old name and new name Tonnage Type Shuttle "The same thing they've been doing." In voying about 35 percent of Kuwait's exports. other words, they can continue to attack ves­ Another 15 percent would have moved on Kuwaiti vessels reflagged American: sels that call at Kuwait but which do not fly tankers flying the flag of Gibraltar that Kuwait Ar-Rekkah-Bridgeton...... 401 ,000 ULCC ...... Yes. Al-Funtas- Middleton ...... 290,000 VLPC ...... No. the American flag. If Iran were to repeat in the has long had under charter for some time. Kazimah - Townsend . .. .. 295,000 VLPC ...... No. next 1O months what it has done in the last The Gibraltar flag assures that the tankers will Umm Casbah- Ocean City...... 80,000 Product...... Maybe. Umm Matrabah-Chesapeake City.... 80,000 ...... do ...... Do. 1O months, it would only have to change one be accompanied by Royal Navy warships. Umm Al-Aish- Surf City ...... 81 ,000 ...... do ...... Do. action to avoid a confrontation with the United Thus, half of Kuwait's oil exports would be Umm Al-Maradem- Sea Isle City ..... 81 ,000 ...... do...... Do. Gas Al-Kuwait-Gas Queen...... 47 ,000 LPG ...... No. States. The only thing it couldn't do all over protected under the original plan. Gas Al-Ahmadi-Gas Princess...... 47,000 LPG ...... No. again would be to attack the Al-Funtas, which Some oil will be carried on the three small Gas Al-Burgan-Gas King...... 47,000 LPG ...... No. Gas Al-Minagish-Gas Prince.. 47 ,000 LPG ...... No. is about to become the American-flag ship tankers leased from the Soviet Union. The Ku­ Chartered from United States: waitis described that as a negligible proportion Unknown-expected in "few 265,000 VLCC ...... Yes. Middleton. weeks". In other words, folks in the know figured the of their total exports, however. Do ...... 265,000 VLCC ...... Yes. Under the new plan outlined to us by the (Under consideration ) ...... VLCC ...... Yes. reflagging really didn't amount to much. Chartered from United Kingdom: All that has now changed, however. Instead Kuwaitis-with the ULCC shuttle, the two Unknown ...... Yes. chartered VLCC's on the shuttle, and assum­ Do ...... Yes. of carrying, one-third of Kuwait's oil, we could Chartered from Soviet Union: see 100 percent of Kuwait's oil protected. As ing that the option for the four-ship shuttle of Marshall Chuikov ...... c.39,000 Product...... No. a result, Iran would not be able to do "the refined products is exercised-the proportion Marshall ? ...... c.40,000 ...... do ...... No. Do ...... c.40,000 ...... do ...... No. same thing they've been doing." They would of Kuwaiti oil exports protected by the United have to do something different. States flag will rise to 70 percent. Add the Gi­ What? braltar-flag vessels, and the covered portion This can be purely speculative. One imme­ of Kuwaiti exports rises to 85 percent. diate thought is that Tehran would strike Kuwaiti officials told us that another two or ADVANCING DEMOCRACY American-flag tankers bound for Kuwait. three ships were all that would be required to That's possible, but for the reasons I have cover 100 percent of Kuwait's exports. They HON. NORMAND. SHUMWAY outlined in previous speeches in this series, I also said they were looking at additional char­ OF CALIFORNIA really do not consider that to be a serious out­ ters of American- and British-flag vessels. IN THE HOUSE OF REPRESENTATIVES come. The Iranians simply are not eager to Neither the Kuwaitis nor the United States give us an excuse to go to war. Navy are forcing anyone to take oil from the Monday, July 13, 1987 My first reaction was that the Iranians would shuttle terminus at Khor Fakkan. That is the Mr. SHUMWAY. Mr. Speaker, earlier this shift the focus of their ire to Saudi-bound choice of Kuwait's customers, some of whom year I had the pleasure of meeting with Ar­ tankers. While visiting with King Fahd of Saudi already take oil at Khor Fakkan. Incidentally, mando Valladares, the well-known Cuban poet July 13, 1987 EXTENSIONS OF REMARKS 19573 who spent 22 years in Castro's prisons. His tablished branches of their dictatorships in In the case of Cuba we have proven this. prison memoirs, "Against All Hope," ignited other countries, on other continents. They Organized and documented denunciations of the conscience of the international community do not support or train guerrillas, they do human rights violations have achieved the with the horrors of life in Castro's Cuba. not foment terrorism in neighboring coun­ liberation of dozens of prisoners and, con­ tries, nor do they have occupation troops to I commend to my colleagues' attention the fronted by public opinion, Castro has tried sustain revolutions in Africa or in Latin to repair a little the damage done to the rev­ statement of Mr. Valladares at the recent America. olution's prestige by accusations of torture Conference on Advancing Democracy spon­ In the same way, these military dictator­ in Cuba. sored by the National Endowment for Democ­ ships are severely criticized by liberals, by Because of our denunciations, the Cuban racy which I am including in the CONGRES­ conservatives, by the left and by the right. embassies around the world are distributing SIONAL RECORD. They are internationally repudiated. These information, pamphlets and articles which I would like to share with you a brief excerpt dictatorships, with a capitalist economic tend to present the country as one respect­ from his statement: base, are not supported by a defined philos­ ful of human rights. They are expending ophy, they have not even formulated a The repression of Cuba, the police state tons of paper and money, demonstrating battle tactic, nor do they have a dictatorial that they are not insensitive to public opin­ established by Castro, has no precedent in force that supports them. They can and do the history of this continent. The dictator­ ion. Indeed, they have admitted in Italy, in ship is maintained by terror, bayonets, exe­ disappear and make room for democracy. articles distributed by the Cuban Embassy, cutions, and concentration camps. Nonethe­ The Marxist dictatorships, on the other that the testimony which I offer in my less, during 28 years Castro has enjoyed the hand, belong to a transnational of terror­ memoirs Against All Hope, is true in some sympathy of many. It is only now that criti­ ism, to a brotherhood of dictatorships, with respects, but only up until 1968. Now they cisms are scarcely beginning to be voiced the support of the Soviet Union. They have admit I was mistreated, but only up until and the truth begins to be known. It is be­ a defined philosophy, a battle tactic, the that year. coming known that the Cuban government constant objective of establishing new dicta­ I think that the tribunals which we held has been very agile in hiding its terror, in si­ torships, and the support of extremist in Denmark and Paris, where a group of tor­ lencing the clamor of its victims by secretly groups and parties from around the world, ture victims from Cuban jails were present­ burying their cadavers. even democratic governments, the press, ed before the press and public opinion, certain churches and intellectuals. made the practice of torture in Cuba so evi­ The full text of the statement follows: That is why the dissolution of military re­ dent that we forced the Cuban government REMARKS OF ARMANDO VALLADARES gimes of the right has been easier to to admit these facts for the first time. My name is Armando Valladares and I am achieve. They have established dictator­ The periodic publication of information here this morning because I preside over the ships with their doors semi-ajar. They are pamphlets, distributed in Western Europe­ European Coalition of Committees for not completely closed societies, and it is pre­ an countries, has also contributed, and per­ Human Rights in Cuba, a project supported cisely this accessibility by the press, politi­ haps, if we have the necessary resources, we by the National Endowment for Democracy. cians, and intellectuals that has made it pos­ may be able to force Castro to admit that For 22 years I was a victim of the tortures sible for world public opinion to know the the abuses and violations existed not only of the Cuban dictatorship. In principle, for horrors of the violations of human rights, to until 1968, but until yesterday. ethical reasons, I think no dictatorship is express their disapproval, and to organize I would like to say that with our work we good-they all put an end to freedom and campaigns for the freedom of these peoples. have managed to sensitize the countries of all must be rejected. Herein lies the danger which dictatorships Western Europe. Indeed, all those which Nonetheless, just as there are varying de­ of the left see in half-opening their doors. participated in the last U .N. meeting on grees of suffering and gravity of one same The communist models are the most com­ Human Rights in Geneva voted in favor of illness, dictatorships come in varying de­ pletely closed of all dictatorships. The free an investigation of Castro. grees of oppression and repression. exchange of people and ideas weakens these Now the Cuban government is preparing a It would not be historically correct, nor regimes. conference to demonstrate that at present just, nor realistic, to equate the material re­ When Radio Marti began its transmissions there are no human rights violations. This sults of all dictatorships, and their devasta­ to Cuba, Castro was infuriated. He invested means that a continuous campaign against tion, because in comparative terms of horror dozens of millions of dollars in this country human rights violations can obtain results, the genocide committed by Pol Pot in Cam­ to try to impede it. He threatened, he shout­ even in a society as closed as Cuba is, and bodia with two and one half million mur­ ed, because it is easier for him to subjugate can force a country to be more careful and dered cannot be the same as those deaths an uninformed rather than an informed to respect the lives of prisoners. The free­ produced by the Sandinista or the Para­ people. dom of political prisoners can depend on our guayan dictatorships. Radio Marti and other radio stations that work abroad, and our work can also serve to One also cannot equate, in statistical transmit to Cuba are slowly changing the foster and encourage democracy in these terms, the realities of Pinochet's regime Cuban situation in many respects. It is now closed societies. with that of Fidel Castro's. Cuba, with ap­ more difficult to fool and disinform the proximately the same population as Chile, Cubans who have an open window to the has 1, 700,000 exiles, Chile has only 3,000. In outside world, a window through which HON. BRIAN DONNELLY ON THE Chile there are opposition political parties they can see that other ideas, other social BEER INSTITUTE who can meet and make public plans to models exist. This has forced the Cuban remove a dictator. Their leaders travel government to provide a little more infor­ abroad, they attack the dictatorship, and mation. BRIAN J. DONNELLY return to Chile. The repression of Cuba, the police state OF MASSACHUSETTS Chile allows inspections by the United Na­ established by Castro, has no precedent in IN THE HOUSE OF REPRESENTATIVES tions to verify human rights violations, and the history of this continent. The dictator­ also allows demonstrations in the streets ship is maintained by terror, bayonets, exe­ Monday, July 13, 1987 where the people shout their repudiation of cutions, and concentration camps. Nonethe­ Mr. DONNELLY. Mr. Speaker, I am submit­ the dictator. In Cuba, the degree of repres­ less, during 28 years Castro has enjoyed the ting for the RECORD today an article from the sion is such that nothing like that can sympathy of many. It is only now that criti­ Dedham, MA, Daily Transcript, concerning the happen. But despite their differences, both cisms are scarcely beginning to be voiced are dictatorships, both are unjustifiable, and the truth begins to be known. It is be­ outrageous techniques used by the Beer Insti­ and both should be repudiated. coming known that the Cuban government tute to lobby against excise tax increases. I want to say that I have denounced the has been very agile in hiding its terror, in si­ I was one of the select members of the violation of human rights in Chile, because lencing the clamor of its victims by secretly Ways and Means Committee deluged with I am opposed to the torture of a communist. burying their cadavers. mail after the Beer Institute took out mislead­ Human dignity is above being a communist, It is necessary to destroy this false image ing and inaccurate ads in newspapers in my an anticommunist, a white or a black. If I of the Cuban revolution with the truth of district. As this article points out, "beer distrib­ were to accept torture as a means to fight what happens there. Totalitarian dictator­ utors and retailers" are interested in profits against my political antagonists, I would im­ ships fear nothing more than the truth be­ mediately lose my moral strength to de­ cause they are sustained by lies. Public opin­ first and consumers second. The Beer Insti­ nounce those who torture my comrades, to ion in these times plays a decisive role in tute is not concerned about regressive excise denounce those who tortured me. this objective. It cannot remove dictator­ taxes: They are concerned about their own Military dictatorships are local, they are ships, but it can force them to take care of pockets. confined within their borders. Pinochet or their image, to loosen their taloned grip, to Mr. Speaker, shame on them. In the past 1O Stroessner, for example, do not aspire to es- semi-open their doors. years, the average cost of a six pack of beer 19574 EXTENSIONS OF REMARKS July 13, 1987 has increased 67 percent. But the Federal recycled anyway-they would be collected, the owner's perspective of foreign land; the excise tax on beer hasn't been increased sorted and trucked off to landfills. land would be partly their own. This would since 1951. You won't see that in any Beer In­ Well, guess what. The bottle bill-while hardly being a paragon of administrative ef­ provide an excellent educational opportunity stitute ads. ficiency-has worked. The containers are to learn about the foreign lands with which we Like all of my colleagues on the Ways and being recycled. Litter is down on our road­ share the Earth. It would also provide an op­ Means Committee, I am concerned about re­ ways. portunity for each citizen to analyze his na­ gressive taxes too. But we are required to I run 30 miles weekly. Five years ago my tional as well as his international conscious­ raise $19.3 billion in revenue next year. Unlike leisurely jog was more like a steeplechase, ness, fostering a vested interest in, as well as the Beer Institute, we will act responsibly. so heavily were the roadways cluttered with a greater desire for world peace. discarded beverage containers. There simply [From the Transcript, June Second, this plan, if implemented by a 5, 1987] is no comparison between roadside litter now and in the pro-bottle bill days., worldwide agency like UNICEF, would serve TROUBLE BREWING Now, any number of cases can be made for as an excellent opportunity to further the ." distribution and marketing systems. Then administrator from my district, Mr. Harley Yeah. We should know about it. But I take all the savings they'd realize and pass Tabak, on the subject of long-term care. trust beverage industry flunkies about as them on to the customer. These remarks were made during a hearing far as I can toss a case of Bud-which is to But, after all that's happened, we in Mas­ held by the Republican Study Committee on say about 10 feet. Their track record is right sachusetts should know better. this topic. up there on a par with lobbyists for the prestigious Tobacco Institute for contribut­ Mr. Tabak, who has been the administrator ing to the commonwealth weal. WORLD PEACE AND of Annaburg Manor Nursing Home in Manas­ And why not? The Miller Brewing Co., BROTHERHOOD sas, VA, since 1979, is the vice president of after all, is owned by Phillip Morris. You the Virginia Health Care Association and know, the same Phillip Morris which fought HON. BENJAMIN L. CARDIN serves on that agency's long-term care insur­ every attempt by the government to tough­ ance task force. As a result of his experience en health warnings on cigarette packages. OF MARYLAND After all that's happened, we in Massa­ IN THE HOUSE OF REPRESENTATIVES and expertise in this area, I believe my col­ leagues will find his comments helpful. chusetts should know better. Monday, July 13, 1987 Remember the brouhaha prior to the en­ I am Harley Tabak, Vice-President for actment of the bottle bill? Bay State voters Mr. CARDIN. Mr. Speaker, a constituent of Long Term Care for Prince William Hospi­ were warned-no, threatened is more accu­ mine by the name of Father Joe Breighner tal Corportation, and Administrator of An­ rate-that beer prices would spiral crazily came to me with a plan which I believe de­ naburg Manor in Manassas, Virginia, a 245 upward if we dared enact the proposal. serves our note and consideration. His plan bed skilled and intermediate care nursing We were told the beverage industry would has the ambitious goals of world peace and home. I am also the Vice-President of the have to hire thousands of additional em­ brotherhood. Virginia Health Care Association and serve ployees to collect, sort and transport the on that organization's Long Term Care In­ empties. We were told Bay State retailers According to this plan, each nation of this surance Task Force as well as the American would have to set aside part of their sales planet would set aside a small tract of land to Health Care Association's Task Force on space to temporarily store the empties. We be sold in even smaller parcels to persons all Long Term Care Insurance. were told the legislation would never reduce over the world in exchange for contributions I am deeply committed to the develop­ the trash heaped on Massachusetts high­ to UNICEF. That way, millions of people of ment of private insurance for long term care ways. other nations across the world would own as a result of my nearly ten years experi­ "Human nature is human nature," the small parts of each nation. ence as a nursing home administrator. I lobbyists patronized. "And people are going know of the emotional trauma which pa­ to toss those empties out their car windows The benefits of this plan would be twofold. tients and their families experience when whether there is a 5-cent return or not." First, foreign nations would no longer be for­ they come into my nursing home and dis­ Finally, in a parting shot worthy of Clark eign to each participant in this plan. The own­ cover that neither Medicare nor Medigap Gable, we were told the empties wouldn't be ership of even the minutest lot would change policies pay for their stay in my facility. I July 13, 1987 EXTENSIONS OF REMARKS 19575 also know of the frustration of trying to Proposals such as Congressman Slaugh­ HATCHET MEN APOLOGIZE TO provide quality patient care when most of ter's which promote the private sector's in­ LEGAL SERVICE VICTIMS the revenue in a nursing home budget volvement to help solve the growing prob­ comes from Medicaid. Limited government lem of paying for long term nursing home funding inevitably hampers providers who care are urgently needed. I do not believe HON. BARNEY FRANK are trying to offer the care our chronically that government can afford to pay the total OF MASSACHUSETl'S ill patients deserve and which the American nursing home bill of the nation. But with IN THE HOUSE OF REPRESENTATIVES public expects. government incentives and greater con­ Political leaders such as yourselves are fi­ sumer awareness about the financial risk Monday, July 13, 1987 nally giving national attention to an issue which nursing home care represents to most Mr. FRANK. Mr. Speaker, 3 years ago, ap­ which few Americans like to think about Americans, I believe that solutions can be but which a growing number of American pointees of the Reagan administration to the families will confront at some point in their found to this complex problem. I appreciate central office of the Legal Service Corpora­ lives-how to pay for the cost of a relative your interest in this vital issue and look for­ tion, as part of the administration's unrelenting ward to helping you in whatever way I can living in a nursing home. President Reagan and unjustified war on a program to provide in the future. and Secretary Bowen have taken a coura­ legal assistance to poor people, unjustifiably geous first step to providing catastrophic fired Paul Newman and David Gilbert from the protection for the elderly. However, the Bowen report to the President emphasizes SALUTE TO SIOUX CITY :£4iSponsible positions they held in the Legal that "long term care is the most likely cata­ STOCKYARDS S'ervices Corporation network. Mr. Newman strophic illness risk faced by individuals and and Mr. Gilbert were dedicated, able, and con- ' families." Nursing home providers know this scientious public servants who were guilty of not only as an actuarial risk, but as a daily HON. FRED GRANDY nothing other than trying to do the best possi­ tragedy for thousands of Americans. Many OF IOWA ble job of delivering legal services to the are quickly forced to spend down to impov­ IN THE HOUSE OF REPRESENTATIVES poor-a mandate given to them by the Con­ erishment to qualify for the only existing gress and continued by Congress despite the catastrophic protection-the Medicaid pro­ Monday, July 13, 1987 gram for the poor. Reagan administration's efforts to wipe out While I do not expect any catastrophic Mr. GRANDY. Mr. Speaker, today it is my the Corporation. plan to fully resolve the financing of long honor to pay tribute to an organization that Because of their dedication to their duty, term care, we must begin to make improve­ has played a vital role in the agriculture and they were fired by rightwing ideologues sicced ments in long term protection not only for livestock industry of northwest Iowa for 100 on the Legal Services Corporation by the ex­ the present, but for the future as well. tremists within the Reagan administration. The Every demographic trend shows that the years. In 1887, Sioux City, IA, boasted a popula­ Subcommittee on Courts of the Judiciary need for long term care will only increase. Committee, ably chaired by the gentleman tion approaching 40,000 residents. In following By the year 2000, the number of Americans from Wisconsin [Mr. KASTENMEIER] held hear­ over the age of 85 will have doubled. Life ex­ years, more settlers would be drawn to the ings on this subject and it became quite clear pectancy has improved so rapidly that area, enticed by the growing industrial city and to the members of the subcommittee that no today's 65-year-old can expect to reach an surrounding countryside of rich soils and flow­ average age of 81. However, although medi­ valid basis existed whatsoever for the firings. cal advances have contributed to extended ing prairie grasses. While the Reagan administration refused to longevity, there have not been comparable It was in this year that the Sioux City Stock relent in its attack on the integrity and careers breakthroughs in the treatment of chronic Yards was formally established. In honor of its of these two very dedicated men, the courts disabilities associated with old age. Nursing contributions and its place in the region's were available to them for redress. home utilization among those age 85 and economy, the 1OOth birthday of the huge Recently, a settlement was reached in a over remains 14 times the rate of those age stockyards will be celebrated this week. 65-74. lawsuit which Paul Newman and David Gilbert The lack of private long term care insur­ Early receipts indicate just how rapidly the filed against the Legal Services Corporation ance and adequate personal resources will stockyards grew. Only 1O years after the busi­ as an entity, and Donald Bogard and Gene continue to force individuals to risk finan­ ness was founded, the number of cattle sold Potack as individuals. Mr. Bogard and Mr. cial devastation in the event of long term doubled from one year to the next, from Potack were respectively the President and care. Although personal savings are the first 142,238 in 1896 to 294,166 in 1897. the director of Field Services of the Legal line of long term care defense, approximate­ The yards continued their amazing record of Services Corporation by virtue of the Reagan ly one-third of our population would be im­ administration's appointments. poverished after only 13 weeks in a nursing growth, even through latter years of depres­ home. Two-thirds of our elderly would ex­ sion and volatile ag markets. In fact, in 1973 Shortly before the trial was to begin in this haust their financial resources within the the Sioux City Stock Yards grabbed the title of case, settlement negotiations began. Because first year of a nursing home stay. The No. 1 stockyard in the United States based on the Legal Services Corporation and the other Bowen report notes that an estimated one its annual receipts. At that time more than 2.6 defendants obviously understood that they half of Medicaid recipients were not initially million head of livestock were processed were in a very weak legal position because poor, but "spent down" their income and re­ there was no justification for their firing of Mr. there. sources before becoming eligible. Once insti­ Gilbert and Mr. Newman, a settlement very fa­ The award came at the beginning of a diffi­ tutionalized, such individuals seldom return vorable to those two gentleman was achieved. to the community even if the person's con­ cult time for the yards. New and more strin­ They received a monetary award, and also re­ dition improves because of lack of personal gent Government regulations were enacted. ceived letters of apology for their having been resources and the difficulty associated with The beef industry as a whole was also suffer­ readmitting a Medicaid patient to a nursing fired. home. Medicaid, originally intended to pro­ ing from low prices at the markets and high Mr. Speaker, it is not rare that the rightwing tect the poor, perversely forces impoverish­ prices at the grocery store. ideologues in this administration have erred. ment, this ensuring dependency on public But the Sioux City Stock Yards came What is rare is for them to be forced to ac­ assistance. bouncing back. It has managed to cultivate an knowledge that error as a result of judicial Secretary Bowen's report places great em­ active market and often yields prices higher action. I ask that the three letters of apology phasis on the development of private long than those in nearby cities. The auction ring is term care insurance. Congressman Slaugh­ sent to Messrs. Newman and Gilbert be print­ ter's "Health Care Savings Account Act of filed to capacity most every day and recent ed here. 1987," H.R. 955 is an example of the type of improvements in prices has helped booster in­ LEGAL SERVICES CORPORATION, legislation needed to achieve this goal. The terest in cattle, hog, and sheep production. Washington, DC, April 22, 1987. funds in these accounts could be used to Clearly the stockyards' contributions to PAUL NEWMAN, Esq. purchase long term care insurance. Insur­ northwest Iowa farmers and producers has Lexington, MA. ance carriers would also be given additional been and will continue to be an important DEAR MR. NEWMAN: The Legal Services incentive to more aggressively develop and Corporation regrets the circumstances sur­ market long term care insurance knowing one. Let us pay tribute to these contributions rounding your termination in 1984, includ­ that individuals had special funds available and wish it all our best for another 100 years ing any implied criticism of your overall per­ to purchase their products. of success. formance. The Corporation acknowledges 19576 EXTENSIONS OF REMARKS July 13, 1987 your years of long and professional service Times last week that Austrian President Kurt they made you stand there and watch, and to the Corporation. Waldhheim will visit West Germany at the invi­ listen, till the last scream stopped. Mr. Fink, Yours truly, tation of Richard von Weizaecker, the pres­ could you forget? TIMOTHY H. BAKER, dient of the federal republic. It would be a Maybe you could. Mr. Fink, I have been Secretary. trying to forget for 42 years. I have not suc­ tragic and unfortunate decision for the Presi­ ceeded in erasing these memories from my LA w OFFICES OF GENE M. POTACK, dent of the Federal Republic of Germany to mind; not for one day, not for one night, not SUITE 201, 414 FIRST STREET ignore the justified outrage of American citi­ for one moment. I have run the world from Menominee, MI, April 8, 1987. zens and the citizens of many nations about one country to another to forget. I have PAUL NEWMAN, Kurt Waldheim. come to this beautiful country of the Lexington, MA. As my colleagues know, Mr. Speaker, Dr. U.S.A.-the home of the free, the land of DEAR PAUL: I regret the circumstances of Waldheim's name has been placed on the the brave, the kind, the fair, the compas­ your termination from the Legal Services sionate. The U.S.A. soldiers came and liber­ Corporation in 1984. To the extent that this watch list by the Department of Justice, which ated us, General Eisenhower said he will termination implied any criticism of your in­ means he will be denied entry into the United never forget what his eyes saw and his ears tegrity, that implication is removed. States by the Department of Justice for his heard. So I came to look at the U.S.A. gov­ Very truly yours, role in Nazi atrocities in the Balkans during ernment as my saviour. GENE M. POTACK. World War II. Now I read your article and find out that Just a few weeks ago, my dear friend a man who wants me to forget is a former MAY 28, 1987. Rachel L. Gottstein wrote an excellent letter member of the state legislature. My Alaskan DEAR MR. NEWMAN: I regret the circum­ to the editor of the Anchorage (Alaska) Times friends can you explain this to me? Rachel stances of your termination from Legal L. Gottstein. Services Corporation in 1984. To the extent in response to an article published earler in that this termination implied any criticism the Anchorage Times by Tom Fink criticizing of your integrity, that implication is re­ the Justice Department's decision to place Dr. VA EMPLOYEES VOICE STRONG moved. Waldheim's name on the watch list. I urge my SUPPORT FOR THEIR MEDICAL Very truly yours, colleagues in the House and my friends in the COMPUTER SYSTEM DONALD BOGARD. Federal Republic of Germany to read her letter. HON. G.V. (SONNY) MONTGOMERY NATIVE SONS OF THE GOLDEN COULD You FORGET? OF MISSISSIPPI WEST, ARROWHEAD PARLOR DEAR EDITOR: Mr. Waldheim himself can IN THE HOUSE OF REPRESENTATIVES NO. 110 CELEBRATE THEIR tell us best where he was and when during Monday, July 13, 1987 lOOTH ANNIVERSARY the second World War. Until he decides to be honest with his own conscience, people Mr. MONTGOMERY. Mr. Speaker, a contro­ like Mr. Fink, will be able to blame Mr. versy over the effectiveness and cost of the HON. JERRY LEWIS Waldheim's war actions on "Jewish Investi­ OF CALIFORNIA Veterans' Administration's medical computer gators." The atrocities perpetrated by the system, known as the Decentralized Hospital IN THE HOUSE OF REPRESENTATIVES Nazis during World War II were not only against the Jews. They were against Chris­ Computer Program [DHCP) system, has arisen Monday, July 13, 1987 tians and all nationalities as well. They were in the Congress. As chairman of the Commit­ Mr. LEWIS of California. Mr. Speaker, crimes against humanity. tee on Veterans' Affairs, I have scheduled would like to take this opportunity to recognize Many Nazis fled Germany after the war to many oversight hearings on this important a truly remarkable group of dedicated citizens. escape punishment. They fled to Argentina, medical computer system over the past sever­ On the 18th of July of this year, the Arrow­ to Brazil to the U.S.A. etc. To become citi­ al years and the reports on its effectiveness zens of these countries, they changed their and costs have been uniformly very positive. head Parlor No. 11 O of the Native Sons of the names and their identities so as to live as ev­ Golden West will celebrate the 1OOth anniver­ eryone else. People from all walks of life, Since our hearing of April 8, 1987, on this sary of its formation. from different countries and religions seek­ important subject, I have received many let­ The Arrowhead Parlor has been an integral ing justice have banded together in order to ters from veterans and Veterans' Administra­ part of the city of San Bernardino. Indeed, find these Nazis. To quote Mr. Fink "We tion employees in support of the DHCP. throughout its history, numerous business, have delivered nearly half a dozen natural­ I would like to share with my colleagues a professional and civic leaders of the city of ized American citizens to different foreign copy of a letter which I received from Dr. Sam San Bernardino have been members. Known countries for trials based upon allegations A. Threefoot, chief of staff at the VA Medical of Nazi atrocities. We ought not to be deliv­ Center in New Orleans, LA, which demon­ for its dedication to the preservation of the ering U.S. citizens to foreign governments to great heritages and traditions of San Bernar­ be tried on actions which occured 40 to 50 strates how the VA employees feel about dino, Arrowhead Parlor No. 11 O has dignified years ago." Mr. Fink, I want to ask you a "their" medical computer system. dedicatory ceremonies of public buildings and question, if someone killed your mother and The letter follows: have been ardent supporters of innumerable father in a crematoria, burned them alive, NEW ORLEANS, LA, charitable and civic activities. at the age of 28, could you forget? Even March 20, 1987. Mr. Speaker, it is clearly evident that the Ar­ after 40 or 50 years? Hon. G.V. (SONNY) MONTGOMERY, rowhead Parlor No. 11 O of the Native Sons of If someone took your little cousins 6 and 7 House of Representatives, years old and started cutting pieces off their Washington, DC. the Golden West should celebrate their 1OOth bodies to see how long a child can suffer DEAR SONNY: It is rumored that there are anniversary with great pride. I ask that my pain before dying, and you stood by and had pending proposals to withhold funds intend­ fellow Members of the House of Representa­ to watch, could you forget even after 40 or ed for the Veterans Administration Decen­ tives join me in saluting this outstanding orga­ 50 years? tralized Hospital Computer Program nization's many fine achievements. I wish If someone took your young brother and MISSOURI-KANSAS ficial notification of their refusal in January MOZAMBIQUE: ORIGINS OF A CONFERENCE OF TEAMSTERS, AS THE NATION­ 1973. Their youngest daughter, Dalia, born in FAMINE AL COMMITTEE FOR LABOR ISRAEL (HISTA­ 197 4, has lived her entire life as a refusenik. DRUT) "MAN OF THE YEAR," JUNE 11, 1987 Eleven years ago, in 1976, the Brailovskys If you are like me, you were touched requested an official explanation for their re­ HON. MICKEY LELAND during the singing of our national anthem, fusal. They were told that the Moscow State OF TEXAS especially recalling the words "our flag was University had objected to Irina's departure IN THE HOUSE OF REPRESENTATIVES still there." Those words cause me to reflect due to her alleged access to secret informa­ about my concern and worry about this flag Monday, July 13, 1987 and this country. I am shocked to read that tion. This allegation has been contradicted by the U.S. Government is preparing to place the former rector of the university, Prof. Ana­ Mr. LELAND. Mr. Speaker, Mozambique has 1.7 million members of the International toly Lugunov. In October 1976, V!~tor was become an issue of growing interest and im­ Teamsters' union under federal control. I given permission to go to Israel, but not with portance to the United States Congress in have never heard of anything so preposter­ his wife or children. Permission, however, was recent weeks. The United States Government, ous in my lifetime. It's one of the most out­ conditioned on Viktor giving testimony against in response to a food crisis in Mozambique landish, most incredible schemes ever de­ Anatoly Scharansky. Viktor refused to do this that threatens the lives of 4.5 million people, vised to subvert the rights of working men and women to be effectively represented in and so he and his family remain in the Soviet has pledged $75 million of food and nonfood collective bargaining. This issue has very Union-15 years after their initial application. assistance. Other measures are being dis­ little to do with corruption and racketeer­ As is the case with all the people who have cussed to provide for expanded humanitarian ing. It's basically an attempt to destroy an applied for exit visas from the Soviet Union, and infrastructure assistance. integral part of organized labor. the Brailovskys instantly lost their jobs. What­ The factors which have caused this famine The Justice Department is also in the ever contact Irina may have had 15 years ago are complicated and show no signs of abat­ process of preparing the same kind of take­ with "State secrets" while working with com­ ing. In order to meet the needs of the people over of three other unions-the Internation­ puters, a field where 1 week's breakthrough is of Mozambique in an effective manner, it is al Longshoremen, the Hotel and Restaurant Workers and the Laborer's International. outmoded the next, can surely no longer be of necessary to understand the causes of the President Reagan has used every means at any significance. famine. I commend the following piece, pre­ his disposal to destroy unionism-now it's On July 6, I sent the following draft letter to pared by the House Select Committee on the courts. all Members of this body. I hope that my col- Hunger, as a useful background for under- 19578 EXTENSIONS OF REMARKS July 13, 1987 standing the tragedy taking place in Mozam­ MOZAMBIQUE'S COLONIAL LEGACY AND EARLY members, and the Rhodesian Central Intel­ bique. YEARS OF INDEPENDENCE ligence Organization. With the fall of the Mozambique achieved its independence on minority regime in Rhodesia, the South Af­ MOZAMBIQUE: ORIGINS OF A FAMINE June 24, 1975, after an eleven year struggle rican Military Intelligence began funding Mozambique, strategically located on the against Portuguese colonial rule. The Front RENAMO and has since used RENAMO as Indian Ocean and rich in natural resources, for the Liberation of Mozambique CFRE­ a key element in its strategy of regional de­ is crossed by three major rail lines and an LIMO >,the dominant liberation force in the stabilization. oil pipeline which provide essential trade country, quickly came to power. FRELI­ The efforts of RENAMO are focused on links for the landlocked nations of Zim­ MO's victory led to a mass exodus of the destabilizing the government and making babwe, Zambia, Malawi and Botswana. The Portuguese who had run the country for large regions of the country ungovernable. central provinces of Tete and Zambezia are nearly five hundred years and whose depar­ The insurgency has been highly effective in prime agricultural regions fed by the Zam­ ture left the economic and administrative disrupting civil administration in several bezi River whch have the potential of structures in shambles. Many Portuguese provinces of Mozambique. RENAMO's pri­ making Mozambique a food exporter. property owners set fire to farms and facto­ mary targets have been the transport and Rather than benefiting from location and ries as they left. The colonialists left behind power infrastructure-which serve several resources, however, Mozambique today a country hardly prepared for nationhood. Southern African nations in addition to Mo­ stands on the brink of a human catastrophe Literacy among Mozambicans stood at only zambique-resulting in increased regional of massive proportions as an estimated 4.5 seven percent, the number of college gradu­ dependence on South Africa and additional million people, in a nation with a total pop­ ates was negligible, the labor force was transport costs to the region of at least $300 ulation of 14 million, face acute malnutri­ largely unskilled, the industrial base weak, million per year. tion and starvation. Ironically, it is the the infrastructure poorly developed, and the The more vicious side of RENAMO's ef­ country's potential importance to the eco­ foreign exchange reserves depleted. forts is manifested in its attacks on peasant nomic vitality of Southern Africa which The FRELIMO government responded to farmers, food production and distribution places so many people in peril as Mozam­ the situation by adopting a Marxist econom­ systems and social services. These attacks bique has become a primary target of the ic strategy of seizing all private land, abol­ have directly resulted in lower levels of pri­ regional economic and military sabotage ishing private medical and legal practices, mary health care such as vaccination cover­ campaign being waged by the minority gov­ and setting up collective state farms and age rates, decreased primary school attend­ ernment in the Republic of South Africa. factories. The government also suspended ance, declining food production, and in­ South Africa, as an integral component of most civil liberties, and many dissidents creased malnutrition and starvation. Ac­ its desperate struggle to maintain apartheid, were sent to "re-education" camps. FRE­ cording to the UN, the 1983-84 famine in seeks to retain and deepen regional depend­ LIMO turned to the East for assistance, Mozambique that took over 100,000 lives ence on its economic, energy and transport partly because of the perception that the was caused not primarily by drought or poor facilities. RENAMO, the anti-government U.S. and NATO allies had supported Portu­ agricultural policies, but was instead the insurgency force within Mozambique, is gal during the independence struggle. In result of RENAMO's disruption of rural life thus supported and largely directed by 1977, Mozambique signed a Treaty of and food production, destruction of Mozam­ South Africa. Friendship and Cooperation with the Soviet bique's ability to raise export earnings to RENAMO and its campaign of terror bear Union and for several years received large purchase food, and outright prevention of overwhelming responsibility for the human amounts of mostly military aid from the So­ food relief operations. The famine that now crisis within Mozambique today. RENAMO viets and Eastern bloc countries. threatens 4.5 million lives in Mozambique is forces are killing peasant farmers, destroy­ RECENT CHANGES IN MOZAMBICAN POLICY also directly attributable to RENAMO. ing schools and health clinics, burning In the years that followed independence, As well as staging raids on food produc­ crops, pillaging villages amd on occasion FRELIMO presided over a gradual econom­ tion and food relief operations, RENAMO murdering international relief workers. ic decline due to its own economic policies, has destroyed 484 health posts since 1982 RENAMO has wreaked havoc on Mozam­ to worsening drought conditions and to a C42 percent of the total> depriving over two bique's infrastructure, blowing up rail lines growing counter-insurgency. At Frelimo's million people access to health care. Insur­ and bridges, destroying irrigation systems. Fourth Party Congress in April, 1983, the gent attacks have also resulted in 40 percent RENAMO's activities in combination with government acknowledged its economic of the primary schools being destroyed or lingering drought in several areas of the policy mistakes and vowed to move Mozam­ abandoned, leaving 300,000 children without country now imperal more than a third of bique in a new direction. The emphasis education. Local health workers have been the population of the country. Mozambique shifted from state farms and large govern­ killed, wounded, and kidnapped by has the highest infant mortality rate in the ment projects to private sector initiatives RENAMO, halting vaccination programs world, with 325 of every 1,000 children and support for peasant and private farm­ throughout the country. Relief workers dying before age five. 1.8 million people ers. The government demonstrated a com­ have also been attacked and killed, and as a have been internally displaced, another mitment to a more pragmatic economic ap­ result many areas are completely inaccessi­ 420,000 are refugees in bordering countries. ble to the emergency relief effort. proach, joined the World Bank and the Outside observers state that RENAMO The government of Mozambique is solidi­ International Monetary Fund in 1984, and fying its relations with Western govern­ agreed to reschedule its large external debt has unrestricted freedom of movement in ments and institutions as it dismantles payments. Earlier this year, the government only 10-15 percent of the country, contrary to its claim of command over 80 percent of Marxist economic systems. The British gov­ devalued the currency by over 80 percent as ernment has begun a military training pro­ part of its efforts to address an overwhelm­ the nation. U.S. Ageny for International De­ gram with the Mozambican armed forces, ing foreign exchange deficit. velopment and international development and other Western European nations are The other significant policy development and relief officials have said that in the providing significant relief and economic as­ in recent years was the signing of the Nko­ areas RENAMO is active, it does not appear sistance. The U.S. Government has expand­ to exercise any administrative control. ed its support of the government and has mati Accord with South Africa in March, 1984. Largely at the urging of the U.S., Mo­ REGIONAL AND INTERNATIONAL COMPLEXITIES consistently labeled RENAMO as an illegit­ zambique entered into an agreement with 1. Mozambique's Regional Importance imate terrorist group funded and directed South Africa to deny the use of either na­ from outside Mozambique. U.S. relief assist­ tion's territory as a base for "violence, ter­ Mozambique plays a pivotal role in the de­ ance is a significant portion of the donor rorism, or aggression" against the other. velopment of Southern Africa. As one of the community's response of the humanitarian While Mozambique largely lived up to the nations that border on South Africa, it is di­ crisis in Mozambique. rectly affected by South Africa's efforts at The following pages provide a brief back­ Accord by expelling African National Con­ regional destabilization. Mozambique is an ground on the recent history of Mozam­ gress CANC> guerrillas, the South African important target for the South African bique and outline the origins of the famine government admitted that it continued pro­ regime due to the routing of regional trans­ now stalking the country. The situation in viding aid to RENAMO forces in Mozam­ port arteries through the country-trans­ the country, already grave for millions, is bique after the agreement was signed; the port routes essential for reducing the de­ likely to worsen over the next several Mozambican government asserts that this pendence of Southern African nations on months. The political complications of the aid continues. the Republic of South Africa; three of the Southern African region and Mozambique's RENAMO-THE INSURGENCY most essential routes run through Mozam­ particular role in the evolution underway in RENAMO, also known as the Mozambique bique-the Beira Corridor, the Limpopo that region ensure that this crisis will re­ National Resistance CMNR), is the insurgent Line, and the Nacala Line. quire the attention of the outside world for movement opposing the FRELIMO govern­ Zimbabwe, which previously used Mozam­ the foreseeable future. This document pro­ ment. RENAMO was established in 1977 by bican rail lines to transport the majority of vides context of the evolving crisis. Portuguese exiles, disaffected FRELIMO its imports and exports, now depends on July 13, 1987 EXTENSIONS OF REMARKS 19579 South Africa to move from 60 percent to 90 alization, the release of political prisoners, 1.2 million people are inaccessible due to percent of its trade depending on the condi­ and a greater appreciation by U.S. policy­ RENAMO activity, and many of the others tions of the Mozambican lines. Other land­ makers of the regional importance of Mo­ can only be reached by armed convoy, by locked states of Southern Africa are similar­ zambique all led to closer ties between the sea, or by air. ly dependent on South Africa for transpor­ two nations. Congress attached a waiver to Conditions within Mozambique today are tation, creating a situation which has sever­ the Mozambique aid ban, and in 1981, with desperate. 1.8 million people have been in­ al negative implications. Routes through the onset of the drought, the U.S. provided ternally displaced, and another 420,000 have South Africa are ususally much longer, food aid and technical assistance. In 1983, become refugees in bordering countries. The making transportation costs higher. Also, an economic assistance program was launched to support private sector agricul­ mortality of children under five in Mozam­ South Africa receives the revenues for car­ bique is over 325 per 1,000, along with Ango­ rying the goods that Mozambique and tural development, and the program is still others would receive if they handled the being funded at approximately $10 million la's rate the highest incidence in the world. transportation. Most importantly, by con­ annually. Only 30 percent of the population has trolling the region's vital transportation More recently, Mozambique's decision to access to health services partially as a result links-their lifelines to the outside world­ join the World Bank and the IMF have fa­ of attacks on health facilities by RENAMO, South Africa keeps the region in a strangle­ vorably impressed the Reagan Administra­ and only 13 percent of Mozambicans have hold. In order to counter this dependence tion as signs of genuine commitment to eco­ access to safe water. Meanwhile, food pro­ on South Africa and to foster regional de­ nomic reform. Further, the signing of the duction in Mozambique has fallen far below velopment, the nine majority-ruled nations Nkomati Accord between Mozambique and the already low expectations. It was origi­ of Southern Africa have Joined together to South Africa and Mozambique's subsequent nally estimated that domestic food produc­ create the Southern African Development expelling of South African opposition forces tion would be roughly 90,000 metric tons in Coordination Conference . The pri­ led to closer U.S.-Mozambique ties. In Janu­ the 1987 /88 crop year, but officials now mary objective of SADCC is to improve the ary 1985, the Administration announced expect only 60,000 tons and outside observ­ transportation infrastructure by rehabilitat­ that it would propose a small amount for ers as little as 40,000 tons. The result is a military training and non-lethal military ing the railroads which run through Mo­ food deficit of between 650,000 and 750,000 zambique, Angola, and Zimbabwe. equipment to Mozambique, but the request was dropped under Congressional pressure. metric tons. 2. Mozambique and the East Bloc President Machel visited Washington in In order to meet this emergency food In the first decade of independence, Mo­ September 1985 and was warmly received by need, as well as the equally important non­ zambique relied heavily on technical and President Reagan. In May of this year, Sec­ food relief needs of Mozambique, the U.N. military assistance from the Soviet Union retary of State George Shultz assured visit­ in February of this year launched an urgent and other Communist bloc countries. A ing Mozambican officials that the U.S. Gov­ appeal for $243 million in assistance to Mo­ large number of Soviet, Cuban and East Eu­ ernment was committed to supporting the zambique. Representatives from donor na­ ropean personnel, military as well as techni­ Mozambican government and had no inten­ tions met in Geneva on March 31 and collec­ cal advisors, were stationed in Mozambique. tion of recognizing RENAMO. tively pledged $209 million in humanitarian In 1980, Samora Machel, president of Mo­ The European allies of the U.S. have also assistance. The U.S. pledged $75 million in zambique, asked to join the Council for been supportive of Mozambique in recent relief aid, including 150,000 metric tons of Mutual Economic Assistance , years and have provided significant P.L. 480 emergency food commodities and the Soviet bloc's economic alliance. The re­ amounts of aid and foreign investment. 43,000 metric tons of food aid from the Sec­ quest was turned down and, along with a Italy is the second largest donor of assist­ tion 416 program. Through AID's Office of growing disillusionment with the inad­ ance to Mozambique this year after the Foreign Disaster Assistance, the U.S. will equate technical assistance being provided U.S., and the European Economic Commu­ provide $3.4 million to UNICEF to procure by the East bloc countries, led Machel to ex­ nity is the third. Great Britain has begun to plore openings with Western nations. By provide military training to Mozambican and deliver vital medicines, as well as funds 1981, Mozambique was pursuing a policy of soldiers in Britain and in Zimbabwe and to assist CARE and World Vision in organiz­ non-alignment, permitting the return of plans to expand this program to train sol­ ing and carrying out the distribution of food some private enterprises, and was seeking diers in Mozambique. The Thatcher Gov­ and other operations. Western investment and economic assist­ ernment is currently exploring ways to The major problem in Mozambique, how­ ance. expand development assistance to Mozam­ ever, remains the distribution of the food Mozambique retains ties to the Soviet bique as well. and non-food emergency assistance. The off­ Union. The Treaty of Friendship and Coop­ Certain outside groups, however, are pres­ take capacity at the ports is limited and eration with the Soviet Union is still in suring the U.S. Congress to oppose the Ad­ must be expanded if sufficient supplies are effect, and it is believed that hundreds of ministration's policy of establishing closer to be delivered. Due to RENAMO's attacks advisors from the East bloc are currently in relations with the government of Mozam­ on Mozambique's transportation infrastruc­ Mozambique. The Soviet Union, however, bique. Some groups have advocated that the ture and on relief workers, internal distribu­ provided very little assistance for the 1984- Administration open a dialogue with tion is both difficult and dangerous; and in 85 famine emergency and is providing little RENAMO and use them to assist in the many areas there are not enough trucks to to meet the current needs. This fact has not relief effort, ignoring the fact that it is distribute the food. The World Food Pro­ escaped the notice of the government of RENAMO that has basically created the gramme is coordinating the UN response Mozambique. At a emergency donors' con­ current crisis and has exacerbated it by its and is detailing plans for an expanded rail, ference in Geneva in March, the Soviets deliberate attempts to hinder the delivery air, and sea distribution. In May of this pledged $282,000 for humanitarian assist­ of relief supplies. year, WFP launched the first of 35 planned ance to Mozambique against total pledges of THE EMERGENCY airlifts to inaccessible regions. over $200 million. The United States Mozambique is facing a famine of historic pledged $75 million and is perceived and rec­ Along with the need for more trucks, proportions: of a total population of 14.2 there remains a food deficit of over 200,000 ognized as a major provider of humanitari­ million, it is estimated that 4.5 million are an assistance by the government. metric tons, as well as a requirement of $4.7 currently at risk of starvation. The cause of million for health projects, $5. 7 million for 3. Mozambique and the United States this crisis is not drought. Precipitation in the provision of water, $5.8 million for relief FRELIMO's ties to Marxist ideology and 1985-1986 was within levels considered and survival items and $8.4 million for agri­ to the East bloc obviously resulted in poor normal or above normal for most of the cultural inputs. The UN is currently review­ relations with the U.S. in the early years country. The southern provinces-Gaza, ing the needs in Mozambique in light of the after independence. Relations were further Maputo, and Inhambane-have been abnor­ pledges made at the Geneva conference, and strained by reports of human rights abuses, mally dry, but the major food producing re­ including the detention of political oppo­ gions have had adequate rains. According to it is expected to issue another appeal this nents in "re-education" camps, and by Mo­ the U.N .. the primary cause of the food summer. zambique's criticism of U.S. policy towards crisis is terrorism being carried out by South Africa. As a result, Congress imposed RENAMO. Attacks on farmers and rural a ban on all non-food assistance to Mozam­ communities have forced many to abandon bique in 1977. food production and to leave their land alto­ By 1980, a combination of events led to a gether. By cutting the main transportation warming of relations between the U.S. and arteries inside Mozambique, particularly the Mozambique. Machel's disillusionment with rail lines, RENAMO has made° the distribu­ Soviet aid, his subsequent tum to the West tion of food within the country difficult or for assistance, discussions of economic Uber- impossible in many regions. An estimated 19580 EXTENSIONS OF REMARKS . July 13, 1987 PROVIDING SHELTER FOR THE buildings will be used for temporary hous­ land mines. It is the job of the church to be HOMELESS ing; others will house residents permanent­ with them. That was what Father Ignacio ly. Many will be set aside for people with t.n.d Brother Tomas were doing." special needs, including battered mothers, The last time I saw Driscoll was in May, HON. ROBERT GARCIA children in need of foster care, graduates of when he came up from Nicaragua for rest OF NEW YORK drug treatment programs, the elderly, the and he was in a doctor's office in Manhat­ IN THE HOUSE OF REPRESENTATIVES mentally disable and pregnant teenagers. tan. On television that afternoon they had "The people who enter these facilities re­ Robert McFarlane, once the national securi­ Monday, July 13, 1987 quire the special care that is provided," ty adviser; the hearings have been on for Mr. GARCIA. Mr. Speaker, this House has Mayor Koch said. "The organizations, that that long. That day, Driscoll didn't want to passed a multimillion dollar homeless housing have been designated are making an impor­ watch McFarlane because of what he repre­ tant contribution to the solution of the sents, which is death. "America says we assistance bill that will help alleviate some of homeless problem. I would like to congratu­ the problems of homeless individuals and have to stop communism and all I'm doing late the groups and thank them for the help is burying Catholics,'' Driscoll said that day. families. However, it is unfortunately not they will provide." Driscoll, 4-feet-11 and with white hair, then enough, because the problem continues to talked about going back to his parish in the grow, and our budget for such programs con­ Diocese of Matagalpa. tinues to diminish. The housing bill now await­ "It's a fine life for a priest,'' he said. ing a House-Senate conference is a neces­ FATAL MISSION IN NICARAGUA "There is so much to do." sary step in the cure for our Nation's housing "It could be a little dangerous," somebody ills. It, too, is a good bill, yet the administration HON.JAMESJ.HOWARD said to him. threatens a veto, thereby ensuring that the Driscoll stared with his blue eyes and said OF NEW JERSEY nothing. And then he went back to Nicara­ homeless problem will be exacerbated. It is IN THE HOUSE OF REPRESENTATIVES gua, because, of course, he doesn't know any plain that the problem has grown as the funds Monday, July 13, 1987 other way to do it. for housing have dwindled in the last 5 years. And now yesterday, another witness on The situation is shameful, but the States have Mr. HOWARD. Mr. Speaker, there has been television, this time Oliver North, and an­ put in their fair share to hold down the number a good deal of talk about heroes in the cur­ other day of hearings, with the talk center­ of homeless by being creative, and certainly rent hearings on the lrangate investigation. I ing on who said what and when and who by being more realistic and generous than the would like to share with my colleagues a com­ took orders or didn't, here was Driscoll on Federal Government has been. mentary by the writer Jimmy Breslin which ap­ the phone again and he could see North on peared in the July 9 editions of the Daily television in Managua, but of course he New York City has been at the forefront in didn't want to, and, again, he was talking terms of providing shelter for the homeless News of New York. Mr. Breslin, in his inimita­ about more Catholics killed while America and housing for low-income families. The city ble style, helps put the kind of heroism we are tries to stop Communists. In this case, is again proving its seriousness in this uphill witnessing in Central America in perspective. Brother Tomas, dead on a road. battle. I am enclosing an article from the July The current lrangate hearings won't give us a Earlier this year, somebody in the Fran­ 10 New York Times, outlining the city's pro­ portrait of Father Dan Driscoll or of the hor­ ciscan office asked Brother Tomas if he gram to house 1,750 homeless families and rors he and his parishioners face, so it is well wanted to be stationed in California for individuals. It is important that we remember that we attend ourselves to Mr. Breslin's com­ awhile. mentary. "I think I'd rather stay here,'' Brother that this Nation's housing problem is not Tomas said. simply a once a year debate on the House [From the Daily News, July 9, 19871 Brother Tomas took a parish in Matiguas, floor. It is an ongoing one, faced daily by our which was perfect territory for him. There cities, and one they deserve our help with. FATAL MISSION IN NICARAGUA was fighting in the area that made it almost 1,750 HOMELESS OFFERED CHANCE FOR NEW was thrown 20 yards in the air and landed Brother Tomas knew there was a farming upside down," Dan Driscoll, the Maryknoll cooperative in Matiguas that is funded by Sixteen nonprofit groups have been select­ priest, was saying on the phone from Mana­ the Catholic Relief Services, part of the ed to develop and operate housing for about gua. American Bishops' Conference. 1,750 homeless people, the Koch administra­ "And he lived?" And then on July 3, in the evening, Broth­ tion said yesterday. "He did. Father Ignacio came out alive. er Tomas and Father Ignacio were in a The groups will renovate vacant, city­ But Brother Tomas was killed right away. truck and riding with them were two women owned buildings to provide temporary and Father Ignacio was on his back and Brother who worked for the parish, Emperatriz Mar­ permanent housing, both for individuals Tomas was dead. Brother Tomas was on top tinez, 45, and her sister-in-law, Digna Marti­ and families. The city will spend $31 million of him. Brother Tomas' legs were stuck in nez, 40, and at 5:30 p.m. they hit a land of its capital funds to finance the renova­ the wreckage. The legs had been severed, I mine and now all this patriotism and hard­ tions, and $8 million more in state and Fed­ think. I know that Father Ignacio couldn't guy talk that you hear on the television eral money will be made available to the move." came down to what it always does: Some­ local, non-profit groups. This was yesterday morning, and Driscoll body else does the dying. The announcement yesterday at a City was in Managua for a funeral. He is the "When Father Ignacio tried to move, his Hall news conference began the third year pastor of a parish out in the poor rural back hurt so much, he screamed and sol­ of the program, under which the city sells areas north of the city. He was talking of a diers came,'' Driscoll was saying yesterday. the vacant buildings to the groups for $1 land mine that had blown away the life of a "He said that he was afraid that they were each and pays for the reconstruction. The member of the Catholic Franciscan Order, Contras and that they would kill him before city also has promised to provide social and Brother Tomas Augustin Zavaleta, 40, and he could announce what they had done. But medical services to the homeless people who injured Driscoll's friend, Father lngnacio The Sandinistas put Father Ignacio on a will eventually live in the buildings. Urbina, who is 31 and the Franciscans' supe­ mule, and put Brother Tomas' body on an­ In the first two years, 25 nonprofit groups rior in Nicaragua. They hit the land mine other mule and then they carried Empera­ were selected to participate, city officials on July 3. triz on a stretcher. Her sister-in-law only said. Three project approved in 1985 are "Whose land mine was it?" Driscoll was had some shrapnel, I guess. They got under construction and two others will asked. Father Ignacio and Emperatriz to the hospi­ begin construction soon, officials said. "Only one side puts land mines on the tal in Managua." VARIED GROUPS SELECTED roads in Nicaragua," Dan Driscoll said. "How is Father Ignacio?" Most of the 20 sites selected last year are As I spoke to him on the phone, here in "He is having surgery tomorrow. He has undergoing the city's land-use review proce­ front of me on television was Oliver North, broken vertebrae." dure, under which they must be approved who spoke so earnestly about Nicaraguan "And the woman?" by the Planning Commission and the Board freedom fighters. "She died." of Estimate. "What were they doing out there?" I There was silence. Then Driscoll said, The groups selected yesterday included asked Driscoll. "She was a widow who was dedicated to the churches, settlement houses, foundations, "This is a case of the church accompany­ church. This is a terrible blow to the Fran­ local housing corporations and other non­ ing the people," Driscoll said. "Many Nica­ ciscans." profit agencies. Some of the renovated raguans riding trucks to work have hit these "Did you bury him?" I asked Driscoll. July 13, 1987 EXTENSIONS OF REMARKS 19581 "They had three Masses for him here," he atively advertising his cultural creation," Mu­ LEGISLATION TO PROVIDE FED­ said. "They bured him back in El Salvador." hammad said. Mr. Lewis, a bail bondsman, ERAL FUNDS TO STATES FOR "Now what do you do?" formerly managed "Torts" and other jazz CLOSED-CIRCUIT TESTIMONY "I go out tc;> my parish." clubs in his long career of presenting quality IN CHILD ABUSE CASES "Watch yourself." entertainment to Washington audiences. He didn't answer. He never really does Mr. Kendrick is a veteran of more than 45 HON. JAMES A. TRAFICANT, JR. when you talk to him about getting hurt. years in the newspaper business, when he OF OHIO On the television now, here was North began as an assistant to W.A. Graves, pub­ talking with the counsel, Nields, and every­ lisher of Washington's Gailey News and the IN THE HOUSE OF REPRESENTATIVES Nightlife. Since 1942 his byline has detailed body kept telling me that North was putting Monday, July 13, 198 7 on a great show, but I found there was very the glory days of brilliant social events, and al­ little thrill to looking at a man who tells me lowed him to rub shoulders with guests that Mr. TRAFICANT. Mr. Speaker, today I am how important it is to do things like put included the wives of two presidents-Mrs. El­ introducing legislation that will authorize up to land mines on country roads in Nicaragua so $20 million in Federal funding for States that that democracy flourishes. eanor Roosevelt and Mrs. Bess Truman-as well as many stars of stage and screeo includ­ have laws permitting the use of closed-circuit ing Shirley Temple. In those days, when some testimony in child abuse cases. Under my bill, States guests attended benefits for worthy charities with such laws will be allocated a mini­ mum of $50,000, with additional funds being such as the Polio Foundation at Washington's provided based on the population of the State. BLACK WORLD JOURNALISM elegant Lincoln Colonnade, they were ventur­ AND ADVERTISING AWARDS These funds could only be used to initiate ing across the "color line" because of segre­ or expand facilities and training of personnel HON. GUS SAVAGE gation, even in the Capital City. for the implementation of closed-circuit testi­ Performers that Ike Kendrick chronicled in­ OF ILLINOIS mony in child abuse cases. States would dis­ clude all the legends of his time: Count Basie, IN THE HOUSE OF REPRESENTATIVES tribute the Federal funds to local governments Duke Ellington, Cab Calloway, Louis Arm­ and the grants would be made on a matching Monday, July 13, 1987 strong, Louis Jordan, Charlie Barnett, Tiny basis with the States paying 25 percent of the Mr. SAVAGE. Mr. Speaker, on June 19 of Bradshaw, Jimmie Lunceford, Ella Fitzgerald, grant. Eligible States would apply to the this year, Capital Spotlight publisher R.E. Sarah Vaughn, Billy Eckstine, Roy Hamilton, Bureau of Justice Assistance for funds under "Ike" Kendrick, WOL-AM general manager Ruth Brown, James Brown, Jackie Wilson and this new program. Under the bill, States re­ Cathy Hughes, and restaurateur Mickey Lewis Jackie "Moms" Mabley. And while many tal­ ceiving Federal funding under this program were honored by the Black Journalism Review ented writers have been associated with him, would be required to submit a yearly report to as Journalists and Advertiser of the Year at his most memorable associates will always be the Bureau of Justice Assistance summarizing Woodies Hilltop Pub. the colorful socialites from a bygone era. the impact of the activities carried out with the The Black World journalism and advertising There were more than 75 organizations that Federal grant. States would also have to file award were given to the honorees in recogni­ made up the Metropolitan Area Council of similar yearly reports to Congress. tion of their individual contributions, and in Social Clubs that Mr. Kendrick formed. Mem­ Mr. Speaker, I believe that this legislation is commemoration of the 1OOth anniversary year bers of the council included groups such as: an important measure that will encourage States to initiate and expand the use of of Hon. Marcus Garvey's birth. Mr. Garvey Elite Mesdames, Toppers, Club D' Accurd, published a newspaper called the Black closed-circuit testimony in child abuse cases. I Club Entre-Nous, Jack and Jill, Guardsmen, World, which helped spread the message of recognize the sixth amendment requirement self-sufficiency, racial pride, and self-help to Continentals, Tall Girls, Jolly Beggars, The that a defendant be able to confront his ac­ the more than 500,000 members of Garvey's Moes, the Sweethearts of Distinction, and of cuser. That is why my legislation deals only Universal Negro Improvement Association course the predominantly black Greek-letter with live closed-circuit testimony-not video­ [UNIA] in the early 1920's-at the dawn of fraternities and sororities. They sponsored ele­ taped testimony. The grant program author­ Harlem's black cultural renaissance. gant events, and their group recited one ized under the legislation I am introducing motto-"Eat, drink and do your thing. And, According to Black Journalism Review today will apply only to those States that have read Spotlight to find out where." editor Askia Muhammad, in effect a law that permits: the closed-circuit In his popular column, "Spotology," Ike televising of testimony of children 17 years of Publisher Ike Kendrick is the undisputed Kendrick once wrote, age or younger in criminal proceedings for the "Dean" of black newspaper publishers in violation of laws relating to the abuse of chil­ the Nation's Capital. Since October 2, 1953 Each generation has to eventually admit his weekly the Capital Spotlight has illumi­ that "the good old days are gone forever." dren; and that counsel for defendants in such nated the goings and comings of Washing­ But they will long be remembered. proceedings to be physically present in the ton's black society which boasts of having room throughout the period during which such more blacks holding college degrees, mas­ In his tribute to Mr. Kendrick BJR Editor Mu­ children testify. ters, Ph.D's, more black professionals, top hammad said, Mr. Speaker, I offer this legislation today be­ government officials, educators, diplomatic June 19 is a day for remembering. We re­ cause I believe that the expansion of closed­ personnel and journalists than any other circuit testimony will greatly assist in the pros­ city in America. There is no other journalist member the date as "Juneteenth," the anni­ anywhere in the country more deserving of versary of the Emancipation Proclamation ecution of those vile individuals who sexually, recognition than this pioneer. officially ending slavery in Texas, and we at physically or mentally abuse children. The evi­ Black Journalism Review remember the ac­ dence in child abuse cases usually centers Last September, the Broadcaster of the complishments of Advertiser of the Year wholly on a child's testimony. Prosecutors are Year Cathy Hughes led a 13-Week community Mickey Lewis, Broadcaster of the Year often frustrated because a child becomes ter­ boycott of the Washington Post magazine Cathy Hughes, and a lifetime of journalistic rified when confronted with his or her abuser which has resulted in much improved sensitivi­ contributions by the "Dean" of Washington and "freezes" on the stand. In cases where a ty to news stories that reflect positive black black publishers, Black World Publisher of child cannot tell his or her story, the judge has images in the magazine and the newspaper. the Year, Robert E. Kendrick-"lke." We Remember, and we call upon all Americans the option to declare that child incompetent to Ms. Hughes has built WOL-AM, as the gener­ testify. In most instances the judge does exer­ al manager and owner, into one of Washing­ to join us in saluting these distinguished citizens. cise this option. In addition, young children ton's more powerful radio voices. who have been through the traumatic experi­ Advertiser of the Year Mickey Lewis is the Founded in Chicago in 1976, the Black ence of being abused are often unable to ef­ proprietor of Woodies Hilltop Pub. He has Journalism Review is a quarterly periodical fectively relate details of sexual encounters. "contributed to the revitalization of Georgia which focuses on the news, communications, Most disturbing is the fact that evidence Avenue near Howard University by presenting and entertainment media from a positive black shows that psychological harm can occur to first-quality jazz entertainment, and then ere- perspective. abused children who testify in open court. 19582 EXTENSIONS OF REMARKS July 13, 1987 Courts have recognized that closed-circuit lutions to the problems of financing long State Premium Taxes; Elderly Dependent testimony is a solution to this problem. In term care for the elderly in nursing homes. Deductions; and Elderly Care Credits. State of New Jersey versus Sheppard, a New Second, I will address the fundamental INSURANCE POLICIES FOR LONG TERM CARE criticism typically lodged against propo­ The first of these are the insurance group Jersey court allowed closed-circuit testimony nents of private sector alternatives and the to lessen the child's stressful emotions. The alternatives. This is the attempt to expand erroneous conclusions which typically the concept of life and/or health insurance courts have also ruled that the use of closed­ follow because of this criticism. This point circuit testimony is not in violation of the sixth to long term care. Specific policies for long will be underscored by an illustration of term care are only one option offered amendment-if defense counsel is able to how the private sector can dispel this funda­ through the insurance industry. Other vari­ cross-examine the witness. Sixth amendment mental criticism. ations, such as extensions of the Medicare problems are also addressed by my bill in that At the combined federal and state levels Part B supplementary policies, convertible the defendant will be able to watch the child's we are currently spending a total of $9.3 bil­ life policies or health insurance policies lion dollars per year for the long term care with long term care riders exist, as well. testimony on closed-circuit television and nursing home patients who are elderly. The convey his or her observations to counsel by Since there are others testifying today from amount spent exclusively by the states is the health insurance industry, I will defer audio. $4.1 billion. As our society ages, our elderly Finally, Mr. Speaker, in United States versus to those panelists for a discussion of the nursing home population will virtually other insurance options and focus on poli­ Benfield, the Eight Circuit Court of Appeals double in the next thirteen years. The net cies specific to long term care. ruled that a videotape deposition was in viola­ financial impact of this doubling will mean A number of insurance companies have al­ tion of the confrontation clause-however the that by the year 2000 we will be supporting ready begun marketing long term care poli­ court found that closed-circuit testimony would a nursing home population equal to the cies. The entrance and departure of insur­ total number of elderly now in nursing ance companies from the market has been be constitutional. Clearly, closed-circuit testi­ homes. Moreover, we should expect these mony has proven to be a constitutionally ac­ fluid. Our research indicates that, at this expenditures not to double, but to perhaps time, there are currently some 35 companies ceptable way to better prosecute child abuse triple, from $9.3 billion to $27 billion dollars cases-without violating the rights of the ac­ across the United States selling these types as the elderly who will require this level of of policies. cused. The use of closed-circuit testimony is a care will be older and sicker and as health There have been attempts at developing reasonable and effective way to lessen the care costs continue to escalate. comprehensive prototype policies. The poli­ trauma to the tragic victims of child abuse. If no alternatives are found to the current cies currently on the market, however, vary Most importantly, closed-circuit testimony will method of financing long term care in nurs­ considerably in terms of limits on period of ing homes, we will have a system which assist prosecutors in getting more convictions. coverage, per diem reimbursement rates, de­ takes middle class Americans, who have ductibles, and whether home health care This legislation is a balanced and reasona­ worked and saved all their lives, and forces ble measure that demonstrates congressional may be substituted on a ratio basis for nurs­ them to deplete their personal resources, ing home care or not. Additionally, they all support for the use of closed-circuit testimony impoverish their remaining spouses, liqui­ require medical underwriting for purchase. in child abuse cases. I urge all my colleagues date their estates and live on $25 per month A rapid expansion of this market would to support this important legislative initiative. as wards of the state. For $27 billion dollars help to narrow the variation in the area per year, this constitutes a national dis­ both of premium and benefit these areas grace. How to avoid this tragedy is the sub­ and cause some standardization. LONG-TERM CARE INITIATIVES ject of my second theme this morning, a Premiums generally are age graded. Given summary of the major private sector alter­ that the risk of institutionalization in­ HON. PHILIP M. CRANE natives proposed to finance long term care. creases with age, premiums are pro-rated ac­ SUMMARY OF PRIVATE SECTOR ALTERNATIVES TO cordingly. To illustrate this point, AIG, one OF ILLINOIS LONG TERM CARE of the insurance companies aggressively IN THE HOUSE OF REPRESENTATIVES For the past several years I have been in­ marketing long term care insurance, will sell Monday, July 13, 1987 volved in researching and writing a book on one of its policies to an individual, age 65, for approximately $725 per year. This pre­ Mr. CRANE. Mr. Speaker, during the current the various alternatives being put forth to finance long term care in America. While mium jumps to $1,000 if the same policy is debate about the problem of catastrophic care these alternatives are numerous, I have as­ purchased at age 66-69. for the elderly, we must continue to look to sembled for this presentation today, a sum­ There are three major disadvantages asso­ the private sector for a viable solution. Prof. mary of those which are dominant. Addi­ ciated with the use of insurance policies. Joseph Drew, during the Republican Study tionally, for purposes of clarification, I have First, because of the cost of premiums, Committee's April 30, 1987, hearing on long­ grouped these alternatives into five major there is not equal access to this option. For term care, presented an important overview of categories: Insurance Policies, Home Equity a husband and wife to each purchase a long Conversions, Individual Medical Accounts, term care policy at age 66-69 would require the various private sector solutions for long­ a $2,000 per year premium. term care for the elderly. I urge my colleagues Continuum of Care Communities, and Tax Incentives. Because tax incentives are often Second, given that policies are highly vari­ who wish for a better understanding of what included as subsections of the alternatives ble in their premium and benefit levels, role the private sector can provide in offering proposed, in the interest of time, I will not Americans will have to accept variation in workable solutions to the question of long­ discuss tax incentives. quality of care in nursing homes. term care to read Professor Drew's testimony Below, you will see the range of major pri­ A third problem has to do with the viabili­ below: vate sector alternatives presented as solu­ ty of many of the firms currently selling these policies. Where companies are driven Honorable Members of Congress, good tions to financing long term care in Amer­ ica. out of the market based on competition, we morning. My name is Joseph Drew. I am an have an immediate prescription for a future associate professor of public administration MAJOR PRIVATE SECTOR ALTERNATIVES GROUPED catastrophe under this alternative. Imagine in the Department of Political Science at BY CATEGORY if you will, the case of an individual in a Kent State University in Kent, Ohio. Insurance Policies: Extension of the cur­ nursing home in his second on third year I would like to preface my remarks this rent "Medigap" policies; Traditional Whole who receives a notice that his/her insurance morning by expressing my appreciation to Life Policies with a Long-Term Care Rider company is in default. The premium is re­ the committee for extending to me an invi­ : and Specific Long-Term turned benefits cancelled. Since these poli­ tation and permitting me the opportunity to Care Policies. cies all require medical underwriting, what testify before you on this most critical Home Equity Conversions: Reverse Annu­ is the elderly person to do? matter-the financing of long term care. I ity Mortgages : Deferred Interest HOME EQUITY CONVERSIONS would ask the indulgence of the committee RAM and RAM with Interest; Sales/Lease­ this morning by permitting me to address back Agreements Latin America and throughout newly active groups, together with the polit­ elites. Its contributions to national security the world does more than inspire the many ical parties already in opposition, will con­ and rural development make the PDF a vi­ Panamanians now calling for their own de­ tinue to press for democracy. tally important part of the fabric of Pana­ mocracy. It also establishes standards of These events occur in a mixed context. In manian society. For their part, military freedom and tolerance that must be met if recent years many nations of Latin America leaders must remove their institution from the outcome of a democratic transition is to have worked hard to escape the classic cycle politics, end any appearance of corruption, earn the respect and support of democrats of unstable alternation between civilian gov­ and modernize their forces to carry out around the world. ernments that lack the authority to govern their large and important military tasks in The calls for democracy in Panama have and military governments that lack the le­ defense of the Canal. already prompted some curious reactions. gitimacy to last. While Panama's 1984 elec­ In this last endeavor, the Panamanian Fidel Castro's press has rallied to support tions were its first direct elections for presi­ military can count on the support of the the Panamanian military leaders against dent in more than 16 years, the lack of sus­ United States. Strict adherence to the canal the people of Panama. Last week Nicara­ tained progress towards democratic rule has treaties by both partners is a fundamental gua's Comandante Daniel Oretega even been a growing disappointment. The 1984 part of Panama's democratic future. Deep went himself to Panama to praise the elections succeeded only partially in moving military involvement in politics neither sup­ "brave and decisive" actions taken to re­ the country away from military dominance. ports civilian rule nor helps Panama fulfill press opposition. I imagine everyone here Many Panamanians believed they had been its role as defender of the Canal. saw that photo of Gen. Noriega in happy manipulated to favor the regime's preferred Over the years, the Panama Defense comradeship with his Sandinista visitors. candidate, Nicolas Ardito Barletta, who was Forces have made substantial progress in Praise from the Communist dictators of an honorable man and a capable economist these areas, and we are proud of the sup­ Cuba and Nicaragua is a telling sign that but inexperienced in politics. In 1985, even port provided to these ends by the United Panama needs international democratic sup­ this tenuous democratization suffered a States. We look forward to the day when port. strong setback when President Barletta was the Panamanian military has earned a new The protests in Panama followed allega­ pressured into resigning after reports that basis of respect-respect based on enhanced tions of wrongdoing levelled by the former he intended to name an independent body professional military capacity to guard na­ second-ranking military officer shortly after to investigate the Spadafora murder. He tional borders, defend the Canal, and to he was forcibly retired. The officer charged was succeeded as by Eric Arturo Delvalle, continue to fight drug traffic and maintain widespread corruption and involvement by the civilian vice president. public order: national respect based on the the Panamanian Defense Forces in electoral Panama's human rights record has been a defense of a democracy which serves the fraud in 1984 and in the 1985 murder of a relatively even one. The 1985 murder of hopes and aspirations of all of Panama's prominent government opponent, Hugo regime opponent Hugo Spadafora-a crime citizens. Spadafora. These are not new accusations, which, to our regret, remains unsolved-still Friendly countries other than Panama are but it is the first time they were made by a stands out as an aberration, not as part of also having their troubles in achieving the member of the Panama Defense Forces. an established trend. Similarly, the recent democratic transitions to which they are These charges touched a raw nerve. There limits on press freedoms have been particu­ committed. were several days of demonstrations in Pan­ larly disturbing because Panama has gener­ In Haiti, General Namphy's calendar for ama's major cities. Opposition activities ally experienced substantial press freedom. transition to democracy-intended to bring were spearheaded by a group called the This failing is especially disappointing in a about the inauguration next February of a Civic Crusade, a coalition of business and country which has such close historical ties freely elected president after a generation civic groups, political parties and the Catho­ with the United States. Let me state flatly of despotism-has hit an obstacle. At issue is lic church. At the height of the protest, the that we view the recent press censorship in the relationship between the government Civic Crusade called for the removal of the Panama as utterly indefensible. and the provisional electoral commission commander of the Panama Defense Force; How can Panama move toward democra­ created by the new constitution adopted for immediate national election; and for the cy? Panamanians alone can answer that with strong popular support just last military to get out of politics. The coalition question. But, as President Reagan has said, March. The impasse, which we hope will be 19586 EXTENSIONS OF REMARKS July 13, 1987 promptly resolved, could put at risk the democratic opposition is unsuccessful in Our goals are clear: it is our policy to sup­ many accomplishments of the transition to bringing about a transition through dia­ port a transition to a fully functioning de­ date. logue, as was sought by Chile's National mocracy in Chile as soon as possible. General Namphy's government has made Accord. a commitment to a successful democratic The Pinochet government has put into • • • • • transition. Haitian democrats have invested place a framework for an institutionalized In all of the countries I have discussed a year and a half of hard work to make it transition to what it calls "a protected de­ today, the military has a large role to play happen. The. integrity of the provisional mocracy". According to the controversial and a special choice to make. Their decision election commission is the best guarantee of constitution adopted in 1980, no later than is of historic importance for their own insti­ a result that the Haitian people will respect. March 1989 there is to be a plebiscite on a tutions and for their countries. Haitians, not Americans, must decide upon presidential candidate selected by the mili­ They can decide to follow one kind of the proper balance. Fortunately, the gov­ tary junta, which includes President Pino­ advice-the advice to "maintain order" or to ernment, the election commission, the polit­ chet. If this candidate is not approved, "keep a strong hand"-by remaining in ical parties, the churches, and other respon­ open, competitive elections are to be held sible democratic bodies have all expressed a within a year. power or by designating a civilian govern­ willingness to keep the process moving for­ Many within Chile have urged a constitu­ ment of their choice. In this case, as protec­ ward through dialogue and a spirit of tional change to replace this single-candi­ tors of their own narrow interests and of common effort. date plebiscite with the type of free, com­ one political faction, they would be not the The vast majority of Haitians want de­ petitive election used in democracies to elect guarantors of but the roadblock to national mocracy. And they want successful, well­ leaders. Some have urged selection of a con­ development. prepared elections. In these objectives, they sensus figure to lead the country back to de­ This path is well travelled in Latin Ameri­ have the unqualified support of the United mocracy. President Pinochet has not an­ can history, and it has sometimes provided States. Of that no-one should have any nounced his candidacy, but officials of his stability in the short run. Under today's cir­ doubt. government have made clear that he is run­ cumstances, however, it cannot end internal The Haitian military did not seek, but has ning. pressures for democracy, and it certainly accepted, its responsibility to guide Haiti to Chile is thus approaching a crucial turn­ cannot be the basis of support from this free elections. To date it has fulfilled this ing point. It could go either way, toward de­ hemisphere's democracies, including the responsibility admirably, and we congratu­ mocracy· or toward protracted confronta­ United States. late them for their efforts and General tion, toward a government based on a popu­ The other decision the military can make Namphy for leading these efforts. But some, lar consensus or toward the chaos that including some within the military and would accompany a government whose legit­ is in favor of a true democratic opening. Be­ some representing the deposed clique, seek imacy is broadly questioned at home and cause election results are unpredictable, this to manipulate events in a way that would abroad. Whether election or plebiscite, some choice may appear to entail some risks. But return Haiti to the feudal form of govern­ test at the polls is set to occur, perhaps as this is shortsighted-free, regular and open ment that existed under its Duvalier Presi­ early as September 1988. political competition is an essential asset in dents-for life. Just as no one should doubt What is clear now is that if the next gov­ their nation's quest for security and devel­ our support for dialogue and democracy, no ernment of Chile is to have the legitimacy opment. A military establishment that leads one should doubt our willingness to termi­ necessary to move the country to full de­ the way to such a solution will be a truly na­ nate aid to any government that abandons, mocracy, it is essential that the electoral tional institution, protecting the nation as a thwarts or prevents this transition to de­ and political process in Chile be fair, honest whole in its exercise of political freedom. mocracy. Our assistance to Haiti will contin­ and transparent. The public must have This is the best guarantor of long-term sta­ ue, and will continue to enjoy bipartisan access to views of peaceful political oppo­ bility; it will earn the military the respect of support, only as long as Haiti remains on nents of the Pinochet government, through its citizens and the support of the United the democratic path. We will do all we can all means of communication, including tele­ States. to assist this transition to democracy and all vision. As the Chilean Catholic Church re­ The civilian and military leaders of we can to defeat the scheming by Duvailier­ cently made clear, the voter registration Panama, Haiti, Suriname, Paraguay and ists, Macoutes, and their henchmen to re­ process, which has begun but is proceeding Chile who are seeking democracy have our store the old order. very slowly, needs the active support of all Chileans to ensure broad participation in support. They have that support not be­ • • • • the critical choice Chileans will face. cause we seek to intervene in internal poli­ In Chile, since the armed forces deposed What can we do to help? Recognizing that tics or because we are playing favorites. the Marxist government of Salvador Al­ our leverage is limited-we provide no mili­ Quite the contrary. Respect for human lende in 1973, President Pinochet and his tary and no developmental aid to Chile-we rights and for democratic procedures is the military colleagues have made repearted can still do a great deal to provide encour­ best guarantee of nonintervention and self­ promises to return the country to civilian, agement to those working for democracy. determination in the face of abuse and ag­ democratic rule. Fourteen years of military Although we are barred by Congress from gression from the communist world and the rule later, Chile's democratic future is still providing training, we can try to enhance far left as well as the far right. And it is the very much in doubt. contacts with the Chilean armed forces, only path to smooth, respectful, productive Escalating polarization, armed conflict, who have the key role in a democratic tran­ relations with the United States. severe repression, further international iso­ sition. The Chilean military has a long and In the words of the National Bipartisan lation-all are likely if the Chilean people's proud history of professionalism, which Commission on Central America, recent democratic aspirations remain blocked in­ many would like to revive. We can continue definitely. The new democracies among events have "destroyed the argument of the to make clear, as we have, that the United old dictators that a strong hand .is essential Chile's neighbors are already grappling with States supports democracy and human critical national problems such as military­ rights in Chile. To be most effective, we to avoid anarchy and communism, and that civilian relations and achieving sustainable need to tailor our actions to individual cir­ order and progress can only be achieved economic growth. Instability next door can cumstances-and to not undercut those in through authoritarianism." only sap energies best directed elsewhere. Chile who are working toward a democratic Those who believe the United States will There is another dimension as well: Chile outcome. This means endorsing and publicly countenance disruption of the movement remains a special target for foreign Marxist­ supporting steps by the democratic opposi­ toward democracy, who believe we will Leninists. The discovery last summer of tion toward flexible and pragmatic posi­ accept self-appointed spokesmen for "order" massive quantities of terrorist arms, which tions-as in the National Accord. It also against popular cries for democracy, mis­ US experts determined were smuggled into means speaking out against the violent com­ read both the Congress and the Administra­ Chile with the help of Cuba, has removed munists, and urging the government to tion. In this matter there is no partisanship, all reasonable doubt. The Communists' agree to political dialogue, and to curb there are no divisions between Legislative strategy is long-term. Their secret arsenals human rights abuses, especially by prosecut­ and Executive: here, truly, politics stops at were stored in a way that made clear their ing those responsible for human rights vio­ the waters' edge. design for future use. Chile's Communists lations. We can translate these concerns and their foreign backers are betting that into action: as we did by sponsoring and Chilean armed forces will not fulfill the joining consensus on fair human rights reso­ promise to restore democracy, that Presi­ lutions on Chile in the United Nations dent Pinochet will not step down when his Human Rights Commission in 1986 and current term ends in March 1989. They 1987, and by continuing to withhold our reason, and with some logic, that their support of international development bank strength and popular appeal will rise if the lending to Chile. July 13, 1987 EXTENSIONS OF REMARKS 19587 AIRLINE WAR OVER value-added products will help "maintain locations. Austin is claiming that the liqui­ RESERVATION SYSTEMS market share and profit margins," says dated-damages clause is illegal. Barry A. Kotar, who heads Apollo. Suits such as Austin's are seen as pivotal The carriers are also banking on more ag­ by many travel agents, who predict a bid­ HON. JAMES J. FLORIO gressive marketing to gain share, and the ding war if Austin wins. PARS, the TWA­ OF NEW JERSEY weapons are money and gumption. "Cash Northwest Airlines system, would "buy us IN THE HOUSE OF REPRESENTATIVES incentives are all over the ballpark," notes out tomorrow," Northwestern Business Vincent E. Vitti, president of VTS Travel Travers Noble contends, and "even give us a Monday, July 13, 1987 Enterprises Inc., a metropolitan New York little percent of our bookings" because some Mr. FLORIO. Mr. Speaker, consumers are agency. "You can negotiate for cash up of his agencies are located in Minneapolis, up in arms over the decline in the quality of front, lower automation costs, additional Northwest Airlines' principal hub. Already, airline service. Instead of concentrating on im­ compensation over the years-a variety of he notes, American, Northwest, and Eastern terms.'' Insiders at American already expect have called on him to switch. But they proving their basic airline service, however, Sabre's pre-tax margins to plummet from a the major airlines seem to be putting their weren't willing to pay his hefty $4 million in high of 40% in 1985 to 20% this year. liquidated damages. "That's why it's been time and money into a war over airline reser­ The reason the competition is so heated is pretty fixed.'' vation systems. And travel agents are being that it's essential to provide competitive res­ put in the middle. ervation systems to protect ticket profits. What follows is a recent article from Busi­ With all the mergers and acquisitions de­ THE LINEUP IN AIRLINE RESERVATION SYSTEMS ness Week describing this airline war. regulation has inspired, the top five airline companies-Texas Air, AMR, Allegis, North­ As of May, 1987 A SHOVING MATCH IN THE TRAVEL AGENCY west, and Delta-now serve about 80% of Company, System Su scriber Terminals John C. Noble, president of Minneapolis­ the flying public. If the average fare for locations installed based Northwestern Business Travel, made each leg of a trip is $100, and an airline has a bundle for United Airlines Inc. last year. to pay almost $2 for a booking on someone American Ai rlines ...... 12,467 52,397 Even though fewer than 5% of the 180,000 else's system, the slim profits at most carri­ 38 airlines tickets sold by his 12 offices were ers can quickly get eaten up. ~~;~ ~li~~~t!.. :::::::::::::::: ::: :::::::::::::: :::::::::::::::::::::: 8,944 40,688 Apollo (percent) ...... 30 for United flights, the other 95% were BIDDING WAR Texas Air ...... 6,289 20,000 booked through United's computerized res­ Such numbers are particularly important 15 ervation system, called Apollo. So, United ~le~n~n~o~:~~rt !. .::: :::::::::: :::::::::::::::::::::::::::::::: 4,264 13,814 to Frank A. Lorenzo, whose Texas Air Corp. PARS (percent) ...... 10 was able to charge other airlines $1.85 for is the largest U.S. airline holding company Delta ...... 3,1 00 9,300 every leg of each trip booked. The bottom and the leader in cheap fares. Chairman Datas II (percent) ...... 7 line: In 1986, United got almost $1 million in Lorenzo, whose empire was founded out fees from Noble's bookings and Apollo Continental Airlines Inc. and New York Air, Data: Travel Weekly equipment rental. This year, Allegis Corp. acquired System One when he bought East­ (page 42), the renamed parent of United, ex­ ern Air Lines Inc. in 1986. As Texas Air con­ REASONABLE DAMAGES? pects the system to generate $360 million in tinued to grow last year by acquiring People Vitti of VTS Travel Enterprises thinks liq­ revenues. Express and Frontier Airlines, System One uidated damages will be "thrown out as a re­ With airlines in their eighth year of cut­ expanded, too. The wholly-owned informa­ straint of trade.'' But not everyone is so throat pricing since deregulation, providing tion subsidiary says it has increased its in­ sure. Mark Pestronk of Pestronk & Associ­ information and transaction processing has stalled base of terminals by 47%, to 20,000 ates, a travel law firm in Fairfax, Va., that become a lot more profitable than selling worldwide, in the past year. handles contract negotiaitons and other seats: Market leader Sabre, the system Among the challengers, Texas Air has legal matters for some 100 travel agencies, owned by AMR Corp., American Airlines been the most aggressive, offering travel thinks such damages "are reasonably relat­ Inc.'s parent, produced pretax margins of agents cash incentives to switch to System ed to the damages suffered by the airline.'' 30% last year vs. 5.2% from tickets. Now One. Continental and Eastern are now fork­ Even if the liquidated-damages clause re­ other airlines are applying more financial ing over "several million dollars" to agents, mains, it is likely that more and more muscle to beef up their smaller systems, and says Richard E. Murray, president of agents eventually will switch to reservation American and United are finding themselves System One. "You have to have the critical systems run by the biggest airlines in their in a dog-fight with TWA and Northwest, mass to generate the revenue stream," he areas. Pestronk says. It's in the agency's in­ which jointly own the PARS system; Delta, explains. terest to use the system of the dominant the owner of Datas II; and Texas Air, whose By enticing agencies to switch, System airline, he explains, because agents tend to service is called System One. One is forcing some legal issues that could book the most flights on those airlines. And The two leaders expect to hold their own, blow the reservations game wide open. For by subscribing to the systems of these carri­ partly by spending billions over the next instance, Texas Air has accused American ers, agencies can negotiate special privi­ five years to upgrade their systems. But the and United of putting travel agencies into leges-such as higher commissions for three challengers are shoveling huge "economic bondage." It is encouraging volume purchases, faster service, or better amounts into their systems, too-and asking agents to challenge two standard clauses in access to the last available seats. Congress and the Transportation Dept. to each company's contracts: One states that if As a major part of their information strat­ rein in the front-runners. Observes aviation an agency adds any new equipment to its egies, PARS, Datas II, and System One al­ consultant George James, president of system, its contract is automatically ex­ ready are wooing customers in their major Washington-based Airline Economics Inc.: tended to five years again. The other says hubs. Delta Air Lines Inc. says it has con­ "There's a huge battle going on, with three that if an agency breaks its contract it must verted 88 agencies since last October. on the offense and two on the defense.'' pay the equipment rental fees for the life of System One and PARS says they're signing MONEY AND GUMPTION the contract plus "liquidated damages" 100 a month. Indeed, the basis of competition has shift­ equal to 80% of the estimated booking fees The fight for growth is pushing into other ed markedly since Apollo and Sabre took off that the agent would have generated. The areas as well. All five systems, for example, in the mid-1970s. Then it was a question of amounts can be staggering. Northwestern are looking abroad. Already, some 400 travel having the vision and the technical exper­ business Travers Noble estimates that he agents in Europe lease Sabre and Apollo di­ tise just to create a system. Since then, the would have to pay almost $4 million in liqui­ rectly, while 1,500 agencies in Japan will other carriers have narrowed the technolog­ dated damages to get out of the four years soon find Sabre's data bases added to the ical gap and developed information strate­ left on his contract. reservation system of All Nippon Airways gies of their own. Now, to help attract and To get the issues into court, System One Co., Japan's No. 2 carrier. lock in agencies, all five are offering not just promised in early June to pay all legal costs Congress and the Transportation Dept. reservation systems but more in-depth data for agencies that switch to its system. It may also have a say in which way the reser­ processing services as well. System One, for hired David Boies, a prominent lawyer with vation system battle goes. Encouraged by example, has bought a leading supplier of New York-based Crayath, Swaine & Moore, Congress, Transportation announced on accounting and management-information to handle the litigation for five agencies Feb. 2 that it would investigate airline­ systems for travel agents. United and Amer­ that have been sued, two by United and owned systems, their effect on competition, ican are revamping their systems with Inter­ three by American. In one suit, filed against and their pricing tactics. The investigation national Business Machine Corp.'s new PS/ Long Island's Austin Travel on Feb. 26, is ongoing, and some analysts wonder 2 personal computers, which are powerful United is seeking $408,495 for equipment­ whether the government might eventually enough to handle all the front- and back­ leasing costs plus $900,000 in punitive dam­ require airlines to get out of the informa­ office chores of a typical agency. Such ages for breaking contracts at three agency tion business altogether. But that won't 19588 EXTENSIONS OF REMARKS July 13, 1987 happen soon. In the meantime, the battle cropped up along the rail line and brought Pir:ie Barrens, which is an area of over 1 mil­ will continue over the one really profitable new businesses to the township as well. lion acres and stretches across seven coun­ business the major airlines can boast. Numerous schools were built in the middle tries in central and southern New Jersey. This 1800's. One of the original schools stands whole region is rich in natural and cultural re­ WOODLAND TOWNSHIP: PAST today in historic Charlton Park-a renovated sources. GENERATIONS-FUTURE ASPI- village, located in Barry County, which brings Of special importance to the region's econ­ RATIONS 19th century rural Midwestern culture back to omy are the Atlantic white cedar, the native life. The township was also the site of one of cranberry and the high bush blueberry. Be­ Michigan's first consolidated school districts cause of this active blueberry industry, hun­ HON. PAUL 8. HENRY when township schools merged in 1923 and dreds of workers used to live in Whitesbog for OF MICHIGAN the cornerstone was laid for a new 12-grade 6 months out of the year, adding significantly IN THE HOUSE OF REPRESENTATIVES school. In 1961, Woodland Township School to the Pineland economy. However, inventions Monday, July 13, 1987 District merged with Lake Odessa School Dis­ intended to ease some of the burdens of trict and became the Lakewood School Dis­ these migrant workers, such as the cranberry Mr. HENRY. Mr. Speaker, in this year of trict. A new high school was constructed and scoop of the 1930's and the wet harvesting of Michigan's sesquicentennial celebration, we the former Woodland Township School is now the 1960's, have replaced the hundreds of cannot overlook the small community of used as an elementary and junior high school. seasonal pickers once needed. Woodland Township as its citizens gather to­ One hundred and fifty years after the arrival Another interesting note is that the blueber­ gether to celebrate the 150th anniversary of of the first three young pioneers, a number of ry, which came into being as a result of cran­ the township's first settlers. the churches still exist, and some of the busi­ berry farmers looking for a crop to grow Located in northern Barry County is a heavi­ nesses have remained open for nearly 100 during their off-season, has now surpassed ly wooded area, the township has a rich his­ years. Gone are the railroad tracks and with the cranberry in population. torical heritage which began in autumn 1837, them a few of the original settlements. And Many of those who attended the festival when three young bachelors settled on land the farms are fewer, but larger. Yet, with the saw a documentary depicting the vivid history which heretofore had only been known by exception of one section of land, the woods of Whitesbog. Others chose to listen to the local Indians. The silence of the forest was have been preserved throughout the township bluegrass music provided by five local bands, broken by the sound of the pioneer's ax as and the area continues to be a "woodland." or to run in the 10-kilometer race. What was the settler's cleared the land for the first three As evidenced by the fact that descentants the award for the winners? Twelve pints of farms. Soon other families followed and in late of many of the first settler's live in the town­ native New Jersey blueberries. 1841 the Michigan Legislature passed a law ship today, residents are proud of their com­ Again, I congratulate the Whitesbog Village declaring the area a township called Wood­ munity. Setting aside August 14, 15, and 16, in their efforts to preserve this turn-of-the-cen­ land. An election was held, and in April 1842, 1987, township citizens and visitors alike will tury agricultural settlement. the first township supervisor was elected. celebrate a weekend filled with historical Still heavily wooded, the village of Wood­ recollections, music, dance, old fashioned land sprang to life with the building of the first meals, and dedications. Mr. Speaker, please "OMINOUS" TRADE BILL business-a blacksmith shop. Connected only join with me in offering congratulations to the by paths through the woods, other businesses citizens of Woodland Township as they cele­ HON. ROBERT J. LAGOMARSINO slowly came into being. In the late 1840's. brate their 150th birthday, a time-as the OF CALIFORNIA German immigrants began to settle in the theme of the celebration suggests-to reflect township, clearing and draining undesirable on "past generations-future aspirations." IN THE HOUSE OF REPRESENTATIVES waste land and through their efforts devel­ Monday, July 13, 1987 oped some of the finest farms in southern Michigan. Many descendants of the German A CONGRESSIONAL TRIBUTE TO Mr. LAGOMARSINO. Mr. Speaker, with the settlers live in the township today. THE WHITESBOG VILLAGE Senate currently working on its version of a The first settlers in the region saw in addi­ trade bill I would like to bring to the attention tion to the heavy forests, many swamps. Suf­ HON. JIM SAXTON of my colleagues an editorial from the July 7, fering from a variety of illnesses caused by 1987, edition of USA Today regarding this leg­ OF NEW JERSEY islation's effect on consumers. the mosquito infested waters, the pioneers IN THE HOUSE OF REPRESENTATIVES over a period of 20 years worked hard to I hope this will be found useful. Monday, July 13, 1987 drain the swamps and clear the land to plant PROTECT CONSUMERS FROM THIS TRADE BILL crops. Taking advantage of the rich groves of Mr. SAXTON. Mr. Speaker, it is with great If the Senate trade bill debate were a B trees, maple sugar became the major source pride that I come before the House today to movie, the script would have the hero of income in the predominately agricultural honor Whitesbog, where some of New Jer­ plunge all 1,013 pages into cold water. sey's famous cranberries and blueberries are That's how Hollywood disposes of a bomb. community. In fact, entire farms were paid for The timing could not be worse for this from maple sugar. grown. Whitesbog has recently celebrated its ticking bundle of protectionist legislation, Other businesses had a more difficult time third annual blueberry festival. which seeks to shield U.S. firms from for­ getting started in the sparsely populated area. Not only is the Whitesbog Blueberry Festi­ eign competition. Churches were a different story, however, and val an exciting event, which attracts over Just as the country's massive trade defi­ the settler's strong Christian faith was evi­ 5,000 people, it is also an opportunity to learn cit-$170 billion last year-shows signs of denced by the number of churches-of all de­ and experience the rich history of New Jer­ easing the Senate bill, and an earlier House nominations-built in the second half of the sey's blueberry culture. This event is spon­ version, could blow up any progress. century; 966 men, women, and children re­ sored by the Whitesbog Preservation Trust, a Government statistics and the best barom­ eter of all, stacks of business orders, shows sided in Woodland Township at the beginning group dedicated to preserving the turn-of-the­ that we are selling more products abroad of the Civil War in 1860. When the war ended century agricultural settlement. The main func­ that were made in the USA: 5 years later, 25 had laid down their lives for tion of the festival is to activate interest in the Our exports improved for the second con­ the Republic and life as it had been known village and the Pinelands. secutive quarter for the first time since the prior to the war was gone forever. In the next Whitesbog was acquired by the State of 1981-82 recession. 30 years, a township hall was built and is still New Jersey with Green Acres funds in 1966. Last year, for the first time since 1950, the used today. Fraternal organizations were The land was incorporated into Lebanon State USA led other nations in improving manu­ Forest and fell under the jurisdiction of the Di­ facturing efficiency. formed, the first brick building was built, other And, for the first time ever, an Ohio in­ businesses started up, including the Woodland vision of Parks and Forestry, Department of dustrial components firm is selling air-con­ Exchange Bank and the Woodland News. And Environmental Protection, and in 1982 was ditioning equipment to Japan and refrigera­ in 1889, the Chicago, Kalamazoo and Sagi­ nominated to the National Register of Historic tion products to Europe. A Wisconsin maker naw Railroad began service and eventually Places by the New Jersey Conservation Foun­ of gasoline engines is recapturing lost Japa­ provided four trains daily. Small settlements dation. Whitesbog is part of the New Jersey nese markets. July 13, 1987 EXTENSIONS OF REMARKS 19589 But the trade bill before Congress ignores New Carrollton, MD man got a call from a thorities had "two cardboard boxes" full of this progress and dwells instead on punish­ travel company in Texas. similar complaints, she said. ing foreign competitiors and babying indus­ Did he want to buy a Vacation Passport "By the time we've heard about them, tries that need a swift kick, not protection. Certificate good for a trip for two to Hawaii, they're out of that state," Crocker said. Crammed into the work of nine Senate including air fare and lodging, the caller The vacation spots mentioned most often committees, and further bloated by 125 asked. in scams are Hawaii and Florida. The states amendments, are sweetheart deals for ev­ The certificate would cost only $229.90, from which many of the scams originate in­ erything from textiles to shoes to wheat plus the names and phone numbers of five clude Florida, Illinois, California and Texas, gluten. other people who might also be interested she said. While some provisions in the bill might be in the promotion, the caller offered. "It's giving a bad name to the industry. positive, they're buried in an avalanche of The man accepted the offer, and gave the The industry is very concerned,'' Crocker shortsighted selfishness. One proposal even caller his credit card number and the five said. seeks federal relief for businesses smarting names. The travel industry is so concerned about from fair trade practices by aggressive for­ He got the certificate, and the charge travel scams that the American Society of eigners. showed up on his card billing, but he never Travel Agents in April sponsored a seminar Presidential discretion to cope with sensi­ got the trip. And because the company has in Washington called "What is a Travel tive trade matters would be hopelessly com­ gone bankrupt, he won't be getting his Scam?" for government investigators from promised by language requiring negotiations money back either, according to Donna numerous agencies, including the Federal and demanding retaliation against foreign­ Crocker, executive director of the Prince Trade Commission and the U.S. Postal Serv­ ers if talks fail. George's County Consumer Protection Com­ ice. Who will be hurt by this congressional mission. "We've been getting hundreds of calls a machismo and special-interest largess? Con­ This man's problem one of 11 travel scam week," said Ray Greenly, director of con­ sumers denied the choice between compet­ complaints filed with the county's consumer sumer affairs for the travel agent associa­ ing products and workers who lose their commission during the past two months, tion, based in Alexandria. "People still be­ Jobs when other nations respond with Crocker· said. She believes there are many lieve they can go to Hawaii for $29." tougher quotas and tariffs. more that haven't been reported. The scams have came to the travel indus­ As the Senate continues debate, some crit­ "We see only a very small number of the try, Greenly said, because even bona fide ics are whining because it does not provide complaints," she said. "Some people may travel agents sell a product-travel-you even more unabashed protection for U.S. only be out $39 or $49, and don't report it. can't see or sample before you buy. businesses. They want legislation over plant They think, 'Well, they got me that time,' "They're painting a picture for you," with modernization, insulation over product in­ and let it go. That keeps us from getting to brochures and other promotional devices, novation. the people sooner." he said. While Congress gropes for ironclad pro­ Consumer affairs offices in Northern Vir­ Greenly sees only one way to fight it. tectionist language, foreign engineers design ginia are receiving the same types of com­ "The best we can do is to educate people." better products. While lawmakers haggle plaints. Pam Cole, an investigator for Ar­ Greenly suggests consumers ask the caller over subsidies, the foreign firms invest in re­ lington's Office of Citizens and Consumer to send additional written information con­ search and development. While too many Affairs, said offering a free round trip and cerning the offer, such as costs and accom­ domestic companies grind out the same old accommodations for two for the price of a modations, before agreeing to purchase. goods, the Japanese turn out new product second round trip plane ticket is a common Reputable travel firms will be happy to do lines. scam. so, he said. Worse yet, when foreign sales reps come "The actual round trip fare will be more Also, be aware of the date of the travel to the USA, they are ready to do business in than it would have cost the consumer to package. Greenly said the scams sell pack­ English. Our side fumbles with menu purchase two round trip fares and accom­ ages more than 6 days in advance so as to French, mumbles "dos-cervezas-por-favor" modations,'' Cole said. avoid involving the credit card companies in Spanish, and has trouble saying "hello" in Telephone solicitors can be running a the recovery of the individuals' money. Japanese. scam when they promise you a free vacation Most card companies will not allow custom­ But this bill is written in a language many if you verify your identity by giving them ers to dispute charges more than 60 days of our companies understand: protection­ your credit card number over the phone. from the billing date, he said. ism. That makes it a real bomb. "We strongly suggest to the consumers Defuse it before it blows up in the econo­ that they don't do this," said Larry Bree­ my. den, assistant chief of the investigation and THE CHINESE SILKWORM AND licensing division of Fairfax County's De­ THE ARCTIC CARIBOU partment of Consumer Affairs. TRAVEL SCAMS ARE A MAJOR Giving your credit card number over the CONSUMER RIPOFF phone is an open invitation for someone to HON. DON YOUNG make fraudulent purchases using your card number, he explained. OF ALASKA HON. JAMES J. FLORIO Cole said Virginians who buy over the IN THE HOUSE OF REPRESENTATIVES OF NEW JERSEY phone have three days by law to cancel Monday, July 13, 1987 IN THE HOUSE OF REPRESENTATIVES their purchase. Like other consumer advo­ cates, they recommended doing business Mr. YOUNG of Alaska. Mr. Speaker, with all Monday, July 13, 1987 with a firm you know, asking a lot of ques­ tions and paying nothing in advance. the discussion about trading arms with Iran, Mr. FLORIO. Mr. Speaker, travel scams are Three of the Prince George's County com­ reflagging vessels, and oil tankers being at­ now a major consumer ripoff. Scam artists are plaints are considered open cases; the rest tacked in the Persian Gulf, it is sometimes dif­ calling and offering consumers phony $29 have been referred to the appropriate attor­ ficult to see the forest for the trees. trips to Hawaii. If consumers ever get a trip, it neys general offices in the states from Toward an end which I hope will include the costs them far more than $29, and likely more which the companies operated, Crocker stirring of Members' thought processes about than comparable packages from reputable said. U.S. goals, I submit for the RECORD the fol­ travel agents or airlines. But most consumers But none of the victims has recovered the lowing article, which appeared in the Washing­ never get a trip and are out $29. But the scam money they were charged for the travel pro­ ton Times, July 7. motions. The losses reported ranged from artists have pocketed the $29-from thou- $99 to several hundred dollars, though none The article, entitled "The Chinese Silkworm sands of bilked consumers. · was more than $1,000, she said. and the Arctic Caribou," sheds some much­ What follows is an article discussing this in­ In most cases, the county's consumer needed light on our present dilemma, and creasing fraud: agency is able to do little more than refer while I do not necessarily embrace it in its en­ [From the Fairfax Journal, July 2, complaints to the attorney general's office tirety, it represents how our raging debates 1987] in the state from where they called, since must appear outside of the beltway. the actual crime was committed there, she Thank you, Mr. Speaker. TRAVEL FRAUD: You WANNA $29 TRIP TO said. HAWAII? With the New Carrollton man's case, THE CHINESE SILKWORM AND THE ARCTIC when the commission filed a complaint CARIBOU It was about this time last year, in the against the company with the Texas attor­ Question: What do Chinese Silkworm mis­ heat of the summer vacation season, when a ney general's office, they found Texas au- siles and Arctic caribou have in common?

91-059 0-89-38 (Pt. 14) 19590 EXTENSIONS OF REMARKS July 13, 1987 Answer: They are both threatening Amer­ can involvement than in, say Afghanistan­ nopoly pipeline companies have passed, ica's energy security. were it not for oil. maybe forever. The business of finding, sell­ Iran is said to be installing Chinese-made The final argument in favor of U.S. inter­ ing and buying natural gas will never be the Silkworm cruise missiles near the entrance vention is the specter of Moslem fundamen­ same. to the Persian Gulf, thereby threatening to talism dominating the Middle East and pos­ The energy business is famous for its cut off a significant portion of world oil sibly destroying Israel. But Islamic funda­ boom/bust cycle. Craggy speculators once shipments. America may very well strike at mentalism poses a new threat to the Soviet laughed when they went bust; they knew it the Iranian missile installations before they Union, not to Israel. The Moslem minority would tum around if they could just hold can begin sinking oil tankers. along the Soviet's southern border grows in­ on long enough. But optimism and meek How did we get this close to a war with creasingly restive under the atheistic rule of bankers may not be enough this go 'round. Iran, when kidnapping our entire embassy communism. Israel was at war with its Arab Decontrol demands fundamental readjust­ staff in Tehran didn't start one? neighbors long before the Ayatollah Kho­ ment. While in international waters and far out­ meini took power, and Israel will be sur­ Consider just a few of these changes: side the declared "war zone," the USS Stark rounded by belligerent states long after Mr. The Gas Company of New Mexico now has hit by two Iraqi Exocet missiles, and 37 Khomeini dies. faces stiff competition from third-party, U.S. sailors lost their lives. America's re­ Strategically, Iran is obviously the "pick cut-rate providers in the interstate market. sponse has been to increase our "presence" of the litter" in the Gulf and our long-range Major interstate pipelines have lost their in the Gulf region. In other words, the policy should prepare for a return of U.S. influence in future Iranian governments. monopoly status, leaving some producers United States is going to rattle its sabers to who never had to market their product ensure the flow of oil from the Persian America's support of our traditional adver­ sary-Iraq-at the expense of our tradition­ scrambling for customers. Gulf. The scramble has created an unprecedent­ Halfway around the globe, the Arctic Na­ al ally-Iran-simply opens the way for long-term Soviet gains. We will lend cre­ ed spot market; long-term contracts are tional Wildlife Refuge serves as a breeding gone and distributors now accept bids good ground for about 150,000 caribou on the dence to the mullah's charge of being the "Great Satan" by supporting Iraq so bla­ for only 30 days. North Slope of Alaska. It is also considered It's a buyer's market now, which lowers to have an enormous potential for oil pro­ tantly. And we concede post-Khomeini Iran to Soviet domination. the cost for industrial natural gas users. duction, much like North America's largest This could mean that the big users in Cali­ oil field, Prudhoe Bay, only 70 miles away. The bottom line is that we stand ready to go to war in the Persian Gulf because of the fornia could well become bankers for New But radical environmentalists consider any Mexico producers. threat to the caribou's environment more Gulf's huge petroleum reserves. Yet Con­ critical than U.S. energy security. gress delays action on oil exploration in the A WHOLE NEW GAME In 1986 America imported approximately Arctic National Wildlife Refuge until after "We're going to have to get into a whole 7 percent of its oil from the Persian Gulf. its August recess. new way of doing business in the oil and gas About 10 percent of our total supply of oil Is this an example of our national prior­ industries," says Bob Grant, a petroleum ge­ now comes from Alaska. Without immediate ities? We let American boys die to protect ologist, former state legislator and head of action, we can expect to see these numbers Japan's oil supplies, but refuse to risk the Gov. Garrey Carruthers' energy and miner­ reversed as declining Alaskan production is loss of a single caribou. It's hard to believe, als transition team. "The day is over when a replaced by Persian Gulf crude. Unwilling but it's true. America's energy policy is pipeline would put a meter on your well and to increase domestic production, America being dictated by Mr. Khomeini and cari­ pay you according to a long-term contract. must protect the Gulf's tanker routes or bou. It's to abrogate long-term supply con­ vored and courted." rose suddenly. LeMay says that producers tracts. Pipelines holding "take-or-pay" con­ A CAPITOL RESPONSE would have a hard time bouncing back. The tracts with San Juan Basin suppliers found The state's take in direct taxes on oil and game has changed too much. themselves bidding for 30-day contracts gas has plummeted-from $367 million in "The muscle is out of the industry. In from three large LDCs: San Diego Power 1985 to $235 million in 1986, mostly due to a 1981 we had about 4,500 rigs operating and Light, Southern California Edison, and 22.4 percent decrease in natural gas produc­ , then it's labeled "prorated," to form marketing cooperatives, according about it." or in a common pool. The lucky producer to Darwin and Van De Graaff at the New Not anymore. with a contract will be pumping the gas Mexico Oil and Gas Association, but he says right out from under other well owners who that changes at the state legislative level FIRING UP GAS DECONTROL have no customers, or who don't want to sell will probably have limited impact. to anyone at today's prices. "The biggest threat is the encroachment Decontrol of natural gas may be right "In today's marketplace," Ackerman says, of Canadian gas," Van Graaff says. "We've around the bend. The Energy and Justice "the rules seem to be contradiction. It asked the governor and the congressional departments have already proposed easing amounts to trying to solve both an economic delegation to make sure Canadian gas isn't some of the more onerous federal controls problem and a legal problem with one being unfairly subsidized. It's sure coming on natural-gas prices. And President Reagan stroke of the pen. I'm not so sure we can do in cheaper than we can afford to produce it, is expected to call once more for complete that." and it's beating us up in the marketplace." deregulation of natural gas in his State of Neither are producers, who seem to be Effective this month, the Energy and Min­ the Union address later this month. The about evenly split; some want to hold on to erals Department, created under the Jerry only real impediment left is Congress, where the old rules while some want to freely com­ Apodaca administration, will be absorbed by many members have been wont to listen to pete. the National Resources Department in ac­ "consumerist" soothsayers instead of eco­ "Many producers feel that if they can cordance with Gov. Carruthers' reorganiza­ nomic reason. hold on, things will get better," says David tion. Grant and Cohen are eyeing the reor­ The past 12 months of partial decontrol Cohen, a former chairman of the New ganization anxiously. have seen natural-gas prices decline sharply, Mexico PUC. "I don't see it that way. The "As transition team chairman I took the not "fly up" like some Naderites and the industry has changed radically, and produc­ position that now is not the time to do away Citizen/Labor Energy Coalition predicted. ers can't just assume that they will have a with the Energy and Minerals Department," The most expensive category of gas has market anymore." Grant says, "and I dont mean that as a criti­ dropped almost a dollar per thousand cubic feet, and major gas pipelines variously NEW RULES, NEW PLAYERS cism of Garrey Carruthers. He's governor. But traditionally the secretary of Natural report declines ranging from 9% to 31% in The cliche is that one man's downfall is Resources is more accustomed to dealing their average gas costs over the past two another's opportunity. Under the new rules with state parks and with game and fish years. "Partial decontrol has resulted in of this segment of the energy game, pipe­ than the economic forces that drive New lower natural-gas wellhead prices, despite lines that once controlled gas from well­ Mexico. We've got to be out there represent­ the claims by many that a partially free head to wholesale customer are reduced to ed at every meeting of the California PUC. market environment would lead to higher common carriers. Pipelines such as El Paso We have to face it. At least in the near term prices," says Nicholas Bush, president of the Natural Gas are abandoning their market­ our future is in California." Natural Gas Supply Association. ing function and realigning themselves as "I don't see any signs that the Governor's Last month, the departments of Energy transport companies. And although Califor­ office is evolving any kind of energy policy and Justice recommended a further easing nia can, in theory, shop for the best price or anything indicating a strong focus," of controls. They proposed that the "vintag­ month-to-month, the administration is a Cohen says. "We're moving into a signifi­ ing" of so-called old gas discovered before nightmare. cant new era, and the state needs to take a 1974 be eliminated. The current ceilings on "It's been an absolutely dramatic change leadership role in trying to deal with those old gas range from 31 cents to $2.52 for a from long-term contracts to deals made on issues." million British thermal units. The DOE the phone and a handshake." Grant says. plan would allow all this gas to be sold at "Companies we've never seen in New Mexico MARKETING-THE KEY prices up to $2.52. The Federal Energy Reg­ will emerge to handle the details." At the Oil Conservation Division, Bill ulatory Commission now has the proposal "There is a whole network of relation­ LeMay will be the man in charge of oil and open for comment, and action is expected ships between producer and end user," says gas policy for the Carruthers administra­ by June. Cohen. "(Someone) has to nominate the gas tion. A geologist, he's been in the oil and gas Experts don't believe, however, that all into the pipeline, do the billing, insure qual­ business and represented small producers old gas necessarily will be sold at the top ity. I think a whole new industry will for 30 years. price of $2.52 per million BTUs, which is emerge-a service industry responsible for "The state's involvement is going to con­ around the current market clearing level. contract management." tinue, if not accelerate," he says. "We're the Instead, much old gas could be sold eco­ "Cohen is now a Santa Fe lawyer who rep­ only state that has been giving testimony in nomically at $1.50 to $1.75, with producers resents nationwide gas marketing compa- PUC hearings in California. We'll continue increasing their revenues on higher volume 19592 EXTENSIONS OF REMARKS July 13, 1987 sales and consumers benefiting from more as the National Coal Association, American Eighteen-dollar oil is a fair compromise plentiful supplies at lower average prices. Gas Association and Natural Gas Supply As­ between the $25 when the price slide started Indeed, one estimate predicts that so much sociation. and the $8.50 low reached last summer. additional old gas production-perhaps 34 A fight still looms, however, over decon­ American oil companies can produce and trillion cubic feet-will come on stream that trol of natural-gas prices. The Senate meas­ sell already-discovered oil at $18 and still the economy will benefit by more than $25 ure includes repeal of the "incremental pric­ make money. But they can't afford to look billion during the next decade. ing" requirements of the Natural Gas Policy for oil at that price. A study by the account­ With the move toward further natural-gas Act of 1978-another legislative offspring of ing firm of Arthur Anderson & Co. showed price and transportation deregulation under the "energy crisis." Incremental pricing that the average cost of finding and produc­ way, there really isn't any sound reason to places a federal surcharge on natural gas for ing oil in the United States from 1981 retain controls. "Full deregulation of well­ boiler use. The program makes it hard for through 1985 was more than $15 per barrel. head prices would bring significant benefits interstate pipelines to respond competitively By contrast, Saudi costs, including transpor­ to consumers," says Mr. Bush. "There is to other fuel-price changes. The House tation, are only one-fifth as much as ours. simply no rational argument not to elimi­ energy subcommittee has rejected an Selling American oil for $18 is equivalent to nate the remaining wellhead controls on amendment to abolish incremental pricing. liquidating the domestic industry. natural gas as a way of eliminating the dis­ tortions that have plagued this industry­ It's taken six years since complete oil de­ Quit worrying; the United States really is and consumers-for more than 30 years." . control for Congress to learn that the feder­ energy rich. We're very rich in coal and al government doesn't belong in the energy quite rich in natural gas. Assuming better It is to be hoped that Mr. Reagan, in his business. We guess that's progress. Members incentives become available, we've got State of the Union address, can light a fire of Congress are recognizing that both con­ enough oil-supplemented by a large in­ under Congress to act quickly on complete sumers and producers benefit from a free crease in natural gas production-so that we decontrol of naural gas. As long as controls market in energy. To achieve this goal, Con­ can supply 75 percent of our needs for a continue, relatively inexpensive forms of gress should do away with the remaining while. Even though we are the Saudi Arabia natural gas will remain shut in the ground, controls on natural-gas prices. while consumers are forced to accept other of coal reserves, environmental and other higher-priced gas. This system has never costs will prevent that fuel from taking the place of oil and gas until there is great tech­ made any economic sense, for either produc­ CFrom the Dallas Morning News, May 18, ers or consumers. Perhaps now, looking at 1987] nological advance in controlling acid rain the heartening experience of partial decon­ and other pollution problems. trol, Congress will see the light at the end MYTHS ABOUT CURRENT ENERGY SITUATION The government needs to invest far more of the pipeline. , chairman of the Energy and Natural That's half the going price for gas offered consumption is increasing. It's clear then Resources Committee, struck a compromise. on the depressed spot market, somewhat that in just a few years all the excess capac­ New power plants need only have "suffi­ more than one-third of the average price of ity except that within the mini-cartel will be cient inherent design characteristics" to all gas. With decontrol, that 17 percent sopped up, and prices will go skyward. permit future coal use. The utilities aren't would trend up toward the spot market required to buy any additional land or price while the higher-priced gas would Look for oil to be between $30 and $35 per equipment. The Johnston compromise won head down. The new prices won't revive barrel in 1990 or 1991, compared with about the key support of Sens. Wendell Ford (D., drilling for natural gas, which was down by $19 now. Look for gasoline lines to start re­ Ky.) and James McClure , as well one-third last year. forming. And that's no paramithia. July 13, 1987 EXTENSIONS OF REMARKS 19593 TWO HUNDRED YEARS AGO The 42-year old law, which is the basis of were really bad," Merin said. Florio, whose TODAY AT THE CONSTITU­ state regulation of all forms of insurance, subcommittee will conduct another hearing TIONAL CONVENTION (JULY 10) has become a subject of consternation in Tuesday on the need for long-term health the House Judiciary Committee, and specifi­ care insurance for the elderly, said last cally with its chairman, Rep. Peter W. week's hearing on the effects of the liability HON. PHILIP R. SHARP Rodino Jr. CD-10th Dist.). crisis "produced a consensus that there is a OF INDIANA The McCarran-Ferguson Act specifically need for uniformity within the regulatory IN THE HOUSE OF REPRESENTATIVES grants the states the authority to regulate framework." and tax insurance. But it also exempts the His reference was to the fact that each Monday, July 13, 1987 insurance industry from certain provisions state is regulated by its own set of insurance Mr. SHARP. Mr. Speaker, when the new of the federal antitrust laws, which Rodino rules and, without uniformity, the system is special committee reported its deliberations said has worked to the disadvantage of the unable to function properly, since insurance on the issue of representation in the House of public. is a form of interstate commerce. Representatives, a new split-this time be­ Two other congressmen from New Jersey, Florio also noted financial factors which Rep. James J. Florio South Carolina challenged the committee's sumer protection and competitiveness. NAIC information showed that more than report which allotted 35 spots in the House to Florio, chairman of the subcommittee, 400 insurance companies are on "the NAIC's the Northern States and only 30 to the South­ wants to know whether there should be a list of financially troubled companies." ern States. role for the federal government in regulat­ "I think some degree of federal action will In a speech on the Convention floor, Pinck­ ing any aspect of insurance. evolve in the solvency area, because sooner Rinaldo has taken the position that in or later someone is going to start saying ney said, view of the liability crisis which left many that something has got to be done in that I do not expect the Southern States to be without insurance and others with exorbi­ area," the South Jersey congressman said. raised to a majority of representatives, but tant premiums, Congress should thoroughly "As a result of the hearings, my goal is to wish them to have something like an equali­ review the insurance procedures to see what have packages of responses ready and avail­ ty. is needed in the regulatory code to prevent able when the public starts insisting that Primarily because the Northern States had any such recurrence. something has to be done," Florio added. a significantly greater population than the The liability crisis, which specifically hit He said that another hearing by his sub­ Southern States, the Convention voted to busi.Ilesses, municipalities and recreation en­ committee later this year will bring in repre­ accept the committee's recommendation. tities, has left a bad taste that still annoys sentatives from the National Association of many officials. State Attorneys General. But Merin is the only member of the They, like the National Association of PUBLIC REMAINS CONCERNED NAIC to urge significant reforms that in­ State Legislators and a long list of other REGARDING INSURANCE ISSUES clude some extent of federal participation. state government agencies, trade associa­ "One of the reasons the insurance crisis tions and consumer organizations, have occurred was due to the lack of a strong reg­ gone on record in favor of eliminating the HON. JAMES J. FLORIO ulatory system," said Merin, who has re­ antitrust exemption under the McCarran OF NEW JERSEY mained here for several days after testifying act. IN THE HOUSE OF REPRESENTATIVES at a hearing in Florio's subcommittee on "They're going to be advocating more fed­ Wednesday. eral regulation in different areas, such as Monday, July 13, 198 7 Merin said he believes the "liability crisis" airline scams and insurance fraud," Florio Mr. FLORIO. Mr. Speaker, the liability insur­ is waning. "The insurance industry is in the said. ance crisis remains a reality for many busi­ midst of a recovery, and it seems to be going "I think Commissioner Merin is correct, nesses, professionals and others throughout back to business as usual. that the industry people are starting to say the country. Congressional deliberations on in­ "But in light of the devastating effect the that maybe the federal government is the crisis had on commercial insurance buyers, I lesser of two evils, that maybe we should surance have made progress, but the issues don't think we want to go back to business have a federal regulatory system. remain complex. A recent article in the New as usual," he asserted. "Either way, there's a whole new dynamic Jersey Star-Ledger by Herb Jaffe does an ex­ Referring to what he called a "dramatic at work, and the states may ultimately have cellent job of summarizing the current situa­ turnaround" in "ideology" by some insurers, to share some of their regulatory tion. Given the complexity of the issues, it is Merin said he is certain "there will be a responsibilities," Florio said, fortunate that the subject has received the major change in insurance regulation within Rinaldo, who is one of the ranking minori­ kind of high caliber coverage provided by Mr. the next few years." ty members of Floria's subcommittee, said Jaffe. His article follows: · "I think the insurance industry will ask the industry "must bear some of the respon­ for federal regulation," he said "In the next sibility for the crisis" which, he added, JERSEYANS IN VANGUARD OF EFFORTS To five to 10 years, you'll get pleas from the in­ caused great consternation among the REFORM FEDERAL INSURANCE REGULATIONS dustry to relieve them of state regulation," public. Merin predicted. Referring to the industry's argument that WASHINGTON.-Four public officials from He said that while the industry has little the proliferation of tort lawsuits and higher New Jersey have become key players in a difficulty with the relatively mild regula­ jury awards is forcing up premiums, Rinaldo battle shaping up in the hearing rooms of tory procedures prevalent in most states, stated: Congress that could substantially alter "they're getting fed up with New Jersey be­ "All too often insurance companies are every aspect of the insurance system. cause of the data we're always asking them ready to settle out of court. They're ready Fueled by public dissatisfaction over the to provide." to settle quickly and, as a result, pay out for nature of practices by a number of insur­ "I think they're also getting fed up with frivolous and nuisance suits that don't even ance companies in all lines of coverage, the New York, California, Texas, Illinois and belong in the courts." fight has brought the state insurance com­ Florida for the same reasons," he added. Rodino has been the leading voice in missioners to Washington defend their regu­ Merin explained that almost every state search of insurance reform for most of his latory role. has its own major insurance differences, 39 years in Congress. In recent years, he has One of the commissioners is Kenneth D. such as auto insurance in New Jersey, work­ focused his attention on the industry's im­ Merin of New Jersey, an admitted "noncon­ ers compensation in Maine, medical mal­ munity from provisions of the antitrust formist" who is neither defending his role practice in Florida and West Virginia, and laws. as an insurance regulator, nor being averse granery problems in some of the western "I believe something has to be done to to a limited form of federal regulation. states. assure that the insurance industry, like all Furthermore, Merin doesn't care whether "Someone in the industry will wake up other industries, is subject to the antitrust the McCarran-Ferguson Act is amended, de­ some day and say, 'Let's create a federal laws," Rodino stated. spite a position paper which the National agency, with uniformity, and then we can go "I endorse the concept," he said of a bill Association of Insurance Commissioners out and dominate it.' introduced last month by Rep. Don Edwards Convention of 1890, was a former slave of was subsequently elevated to judge. He was Leaders of the National Association of At­ Joseph Emory Davis, brother of Jefferson later named an inspector general for the Judi­ torneys General and others advocating Davis. Mr. Montgomery purchased the Davis cial Department of Sicily. He worked on impor­ tough enforcement of federal antitrust laws plantation at Davis Bend after the Civil War tant post-war projects involving both Italy and have sharply criticized President Reagan's and lived there with his family until he moved the United States. nomination of U.S. Appeals Court Judge Robert H. Bork to the Supreme Court. to Mound Bayou. In 1966, he visited family members in Mon­ New York Attorney General Robert Mr. Montgomery and Mr. Green, accompa­ terey with his wife, Enzina, and their children, Abrams, the association's president-elect, nied by their cousin, J.P.T. Montgomery, and Nino, and Esperanza. He and his father has called Bork "a radical judicial activist" 12 families, most of whom came from Davis shared in a tribute from Italian-American com­ and said "the only type of restraint [hel has Bend, Warren County, MS, surveyed the site favored is the restraint of trade." munities for assisting Americans of Italian her­ In Bork's scholarly and judicial writings of Mound Bayou in Bolivar County and itage who were having difficulties of various cleared it for occupation. The site was named on antitrust, he has "advocated complete kinds with the Italian Government. after Indian mounds and a bayou. The popula­ abandonment of the clear intention of the Through the years, Mr. Crivello has offered framers of the antitrust laws" and "both tion had reached 183 before the end of the disregarded and sought to distort [the] his­ first year of settlement. In February 1898 the his assistance to countless United States and torical record," Abrams said in a statement. residents petitioned the Governor to incorpo­ Italian citizens. In doing so, he has helped Michigan State University economist rate the village, and in August the charter was strengthen the ties between our two great Walter Adams, coauthor of "The Bigness signed and sealed. countries. Complex," which was published early this July 13, 1987 EXTENSIONS OF REMARKS 19595 year, said. "To picture Judge Bork as a con­ The guidelines "do not adequately take its export competitiveness, which is the effect servative who believes in judicial restraint is into account the dynamic nature of compe­ of what OMB's proposal would have done. madness." tition, and the ability of market forces to Bork is "a radical of the right" and "a forestall most attempts to restrict output This Member would like to share with his committed and articulate ideologue-a true and elevate prices to the detriment of con­ colleagues an Omaha World-Herald editorial believer in the tenets of 19th century social sumers," Oliver said. discussing why it was important to keep our Darwinism," Adams said in an interview and Frohnmayer, who had defended the guide­ wheat program's idle acres the same. Larger a statement. lines as "an example of cooperative federal­ set-asides are ill-advised because foreign Bork's posture on antitrust "reflects judi­ ism," said that at the upcoming Senate Ju­ competitors would be tempted to resume their cial activism ad extremis"-an inclination to diciary Committee hearings on the nomina­ expanison of grain production if they believed "substitute an ideological belief in what the tion the questioning should focus on the laws ought to be for what the laws enacted issue of "judicial competence and integrity," the United States will impose larger and larger by Congress are and were intended to be," rather than be "a searching ideological ex­ acreage reductions to eliminate world surplus­ Adams said. amination." es and keep program costs down. The farm West Virginia Attorney General Charles But he also said that whether Bork joins policy of the United States must allow our G. Brown, who succeeded Abrams as chair­ with the administration in opposing the as­ farmers to compete in world markets. This man of the association's antitrust commit­ sociation's guidelines would be "a fair ques­ editorial makes several good points on this tee, said in an interview that Bork's anti­ tion." issue: I commend it to the attention of my col­ trust positions "are often inconsistent with Adams, a former president of Michigan leagues. the principles of those who drafted our anti­ State, and New York's Abrams argued that trust laws. His confirmation would only for 90 years-starting with the Sherman Act CFrom The Omaha World-Herald, July 8, serve to weaken the laws that were designed of 1890 and continuing until the first 1987] to safeguard our free marketplace." Reagan administration-the framers of the Bork has a "distorted view of competition antitrust laws and of their bipartisan en­ WHEAT POLICY STAYS ON TRACK Cthatl denies the values of diffusion of forcers were deeply concerned about con­ For months, the U.S. government has power, economic opportunity, and innova­ centrations of economic power. been sending a clear, strong signal of its de­ tion," Brown said. "Bigness isn't badness, They feared that such concentrations termination to make sure that American but it isn't goodness, either, and Judge Bork "would lead to undue political power in the farm products are priced competitively in thinks it is." hands of the corporate elite," Abrams said. the world market. A contradictory signal But Abrams' comments drew fire from But, he said, Bork substitutes for "this his­ might have gone out if the Office of Man­ New Mexico Attorney General Hal Stratton torical record . . . his own narrow vision of agement and Budget had won a recent inter­ and a spokesman for Utah Attorney Gener­ antitrust, one which holds that the law is agency dispute with the Department of Ag­ al David L. Wilkinson. only concerned with the single issue of riculture. Stratton accused Abrams of trying "to maximizing allocative efficiency, which Fortunately, the White House sided with bash President Reagan and the Justice De­ means nothing more than maximizing pro­ the Agriculture Department. OMB wanted partment." In Salt Lake City, Associate duction. to force wheat farmers to idle 30 percent of Deputy Attorney General Paul M. Warner "Under this view of the law, the extortion their acres to qualify for govenment farm said that Wilkinson is "much more comfort­ of consumers by monopolists and price­ payments in 1988. Budget office officials able with Bork's position than with fixers does not violate the law unless indus­ said they wanted the higher number of Abrams'." trial output is thereby reduced," Abrams acres taken out of production to save the Wilkinson "strongly supports" Bork, said. government $200 million in farm program whom Reagan called "the most prominent Adams said that Bork's claim "that the payments. intellectual advocate of judicial restraint." purpose of the antitrust laws is to promote Agriculture Department officials favored And Oregon Attorney General Dave 'efficiency' and 'consumer welfare' " is not a 27.5 percent figure. The White House deci­ Frohnmayer, a Republican who is now to be found in the texts of the Sherman and sion constituted, in effect, a victory for con­ president of the association, said in an inter­ Clayton acts. tinuity over short-term savings. view, "Everything I know about judge Bork The OMB approach would have taken an leads me to believe that he would not try to additional 1 million acres out of production, be a superlegislator." 1988 WHEAT FARM PROGRAM reducing the U.S. wheat harvest by about 35 Bork consistently has argued-in his book, million bushels. Agriculture Department an­ "The Antitrust Paradox," in other scholarly HON. DOUG BEREUTER alysts said the reduction could have caused writings, and in his opinions as a judge of prices to increase, making American wheat the U.S. Court of Appeals for the District of OF NEBRASKA less competitive in the export market. Columbia-that Congress enacted the anti­ IN THE HOUSE OF REPRESENTATIVES Secretary of Agriculture Richard Lyng trust laws to enhance "consumer welfare" Monday, July 13, 1987 said: "Think what that would be telling our and the "business efficiency" that under­ competitors. For two year, we move toward pins welfare. The laws have no worth "other Mr. BEREUTER. Mr. Speaker, the Secretary more competitive prices and then we all of a than economic efficiency," he told the U.S. of Agriculture recently announced the wheat sudden would be reversing our position." Chamber of Commerce in a 1984 speech. program for the 1988 crop year that required A recent report for the National Associa­ Bork also has criticized the law prohibit­ a 27.5-percent acreage reduction-the same tion of Wheat Growers contained this state­ ing mergers where the effect "may be sub­ amount required under the 1987 wheat pro­ ment: There are significant advantages to stantially to lessen competition or tend to gram. For over a month the USDA has the U.S. wheat economy and to the govern­ create a monopoly," has urged no govern­ wanted wheat farmers to idle 27 .5 percent of ment from larger wheat production and ment interference with mergers of competi­ their acres to qualify for Federal farm pro­ more competitive wheat prices." The White tors so long as no more than 60 to 70 per-· House decision to maintain a competitive cent of a relevant market is affected, and grams, while the Office of Management and pricing policy could help bring about those has called for the removal of obstructions to Budget has insisted that the Secretary use his advantages. mergers by conglomerates. authority to require the maximum allowable re­ By an overwhelming vote last March, duction of 30 percent in order to reduce initial while Abrams was chairman of the attor­ program expenditures. ARI VOLVOVSKY DAY neys general antitrust committee, the asso­ This Member applauds the Secretary of Ag­ ciation adopted a set of uniform guidelines for efforts to block the kinds of mergers riculture's aggressive stance and his annouce­ that nearly all of the state attorneys gener­ ment to hold the line at 27.5 percent for acres HON. JOHN EDWARD PORTER al view as anticompetitive but that the idled under the 1988 wheat program. As the OF ILLINOIS Reagan administration probably would United States attempts to recover lost agricul­ IN THE HOUSE OF REPRESENTATIVES allow. tural export markets, it is important that we New Mexico's Stratton and Utah's Wilkin­ continue to send a strong indication to our Monday, July 13, 1987 son were the only recorded dissenters. Both grain, export competitors that we are deter­ Mr. PORTER. Mr. Speaker, I recently joined said that some states were unrepresented mined to keep our agricultural products com­ when the vote was taken. Highland Park, IL, Mayor Daniel Pierce to de­ Justice Department antitrust chief petitively priced in the world market and these clare Soviet refusenik Ari Volvovsky an honor­ Charles F. Rule and Federal Trade Commis­ our share of the export markets. It would send ary citizen of that city. Under the leadership of sion Chairman Daniel Oliver opposed the the wrong signal to our grain export competi­ Chicago Action for Soviet Jewry, the Highland guidelines. tors if the United States unilaterally reduces Park based human rights organization, more 19596 EXTENSIONS OF REMARKS July 13, 1987 than 200 persons gathered to honor this cou­ What follows is an editorial from the June TRIBUTE TO LESLIE H. ARPS rageous man. 23 edition of the Gloucester County Times The Volvovsky's have waited 14 years to which calls for an end to this inexcusable emigrate. They have been harassed, impris­ footdragging: HON.THOMASJ.DOWNEY oned, and exiled to the closed city of Gorky OF NEW YORK solely for their desire to study their religion No EXCUSE FOR LACK OF ACTION ON ATV's IN THE HOUSE OF REPRESENTATIVES and live in Israel. Trained as a computer sci­ entist, Ari cannot fihd work in the Soviet Perhaps it never occurred to the bureau­ Monday, July 13, 1987 Union. crats and legal experts in Washington that Mr. DOWNEY of New York. Mr. Speaker, I Mr. Speaker, despite recent encouraging a problem is not solved merely by making a am delighted to pay tribute to and offer best study and issuing a report. Some action has steps taken by the Soviets, thousands of wishes to Leslie H. Arps, a founding partner of Soviet Jews like the Volvovsky's languish in to be taken to stop the killing of children. But that's where the Consumer Product the law firm of Skadden, Arps, Slate Meagher trepidation that the policy of glasnost will Safety Commission and the U.S. Justice De­ & Flom, on the occasion of Mr. Arp's 80th never give them freedom. The message must partment draw the line. birthday today. go forth from this body and from the American The law firm cofounded by Arps with two people that the Ari Volvovsky's must be given The killing is taking place on all-terrain vehicles, popularly known as ATVs-those colleagues almost 40 years ago has grown to the right to emigrate and to live in freedom. three- or four-wheel motorized "bikes" be the largest law firm in New York City and made for flying across fields and whizzing the Nation, having New York City as its base THE BICENTENNIAL OF THE through the woods. The safety commission with over 700 attorneys located there and in 6 NORTHWEST ORDINANCE reports that from 1982 through 1986 a total other cities throughout the country. Over the of 559 people were killed and 271,300 in­ last few decades it has risen rapidly in promi­ jured in accidents involving ATVs. Children nence to a position of preeminence not only HON. PHILIP R. SHARP 12 and under accounted for 135 of those OF INDIANA in size but in its standards of excellence and deaths. professionalism. IN THE HOUSE OF REPRESENTATIVES Rep. James J. Florio, D-lst Dist., of Pine The firm's ascendancy is a tribute to the Monday, July 13, 198 7 Hill, who has criticized both the commission vision and dedication of the founders of the Mr. SHARP. Mr. Speaker, 200 years ago and the Justice Department for their lack firm, including Mr. Arps. During his 40 years today, the Confederation Congress took a of action, says ATV accidents continue to as a senior partner, Arps gave the firm leader­ claim about 20 lives a month. monumental step for the State of Indiana as ship and direction as a public servant and a well as the future of our Nation. On July 13, Admittedly the Consumer Product Safety private practitioner always aiming for and Commission did follow up its $2.2 million, 1787, the Congress, meeting in New York 18-month study of ATVs, and 14,000-page achieving the highest standard of professional City, enacted a law entitled "An ordinance for report, by asking the Justice Department to excellence and integrity. the government of the territory of the United declare ATVs an imminent hazard. This Leslie H. Arps was born July 14, 1907. His States northwest of the river Ohio." action would allow the department to re­ father, George F. Arps, a noted educator, was The law, which became known as the quire manufacturers to offer recalls and re­ prior to his death dean of the graduate school Northwest Ordinance, established a govern­ funds, and to provide free training to ATV at the Ohio State University, Columbus, OH. mental framework for all or parts of Indiana, Il­ owners. Upon graduation from high schoo!, Arps at­ linois, Michigan, Ohio, Wisconsin and Minne­ Interestingly, Terrence Scanlon, chairman tended the Ohio State University for 3 years sota. The document guaranteed that those of the safety commission, voted against even and then transferred to Stanford University areas would be admitted as States on the these modest measures. And perhaps the where he was elected to Phi Betya Kapa and same basis as the existing 13. people in the Justice Department noted his received his A.B. degree in 1928. He obtained But even more remarkable about the North­ opposition, because after four months, the his LLB. from Harvard Law School in 1931, west Ordinance were the concepts that it em­ nation's top law enforcement agency has serving as a member of the Legal Aid Bureau. braced. The law called for religious freedom done nothing to implement the recommen­ On October 1, 1931 , Arps became an asso­ and individual rights in the Northwest Territory dation of the two safety commission mem­ ciate at Root, Clark, Buckner & Ballantine even before the U.S. Constitution was com­ bers. where he specialized in litigation. While at pleted. The Ordinance also encouraged public Meanwhile the injuries and deaths contin­ Root, Clark, he worked for a number of years education and prohibited slavery in the area ue. as an assistant to John M. Harlan, who later almost 100 years before slavery was made il­ The safety commission's study concluded became a Justice of the U.S. Supreme Court. legal in the United States. that children under 12 cannot operate ATVs From the outset of his career, Arps learned I would like to call attention to this anniver­ safety, and the children between 12 and 15 the importance of hard work and professional sary and stress its importance not only to the cannot safely handle adult-size vehicles. integrity. area that I represent but to the development And it said that education and safety equip­ ment, especially helmets, save lives. In the spring of 1942 Arps enlisted in the of this Nation. U.S. Army and was sent to Fort Jackson, Co­ Fortunately for the children of New lumbia SC, for basic training. In the summer of Jersey, it is illegal for anyone under 14 to 1942, however, Harlan informed Arps, then a NO EXCUSE FOR LACK OF operate an ATV in the state. State law also ACTION ON ATV'S requires operators of all ages to wear hel­ sergeant, that the U.S. Army Air Force was mets. going to form an Operations Analysis Section [OAS] modeled after the British Royal Air HON. JAMES J. FLORIO More can be dol)e to make ATV use safer OF NEW JERSEY Force Operations Research Section, and in New Jersey. But nothing has been done asked Arps to join the section as his assistant. IN THE HOUSE OF REPRESENTATIVES at the federal level where the head of the Arps was commissioned a major and joined Monday, July 13, 1987 commission responsible for consumer safety apparently thinks 20 deaths a month is a Harlan in England, where from October 1942 Mr. FLORIO. Mr. Speaker, the all-terrain ve­ reasonable price to pay for an industry with through August 1944, they acted as liaison hicle [ATV] death and injury toll continues to $1.5 billion in annual sales. between the U.S. Military Command and a mount. There are an estimated 20 deaths and staff of approximately 50 leading U.S. civilian 7,000 injuries a month related to ATV's. There is no substitute for personal cau­ scientists. In December, the Consumer Product Safety tion, whether driving a car or riding an ATV, and no substitute for parental respon­ The activities of the OAS proved to be of Commission voted to ask the Justice Depart­ sibility when it comes to the safety of chil­ great assistance to those conducting combat ment to bring a suit in U.S. district court to de­ dren. That is no excuse for the safety com­ operations in Germany. Altogether, the OAS clare certain ATV's an imminent hazard and mission to shirk its responsibilities or for issued over 300 reports on topics such as provide remedies for consumers. It is now the Justice Department to drag its feet bombing accuracy, results of combat mis­ July, and the Justice Department has yet to while 20 people a month are killed partly as sions, and effectiveness of aircrew gunning, indicate what action, if any, it will take. a result of their inaction. many of which were also sent to Washington July 13, 1987 EXTENSIONS OF REMARKS 19597 for circulation to other Army Air Force com­ [From the Washington Times, June 8, 19871 I'm all for research, but I don't see how mands. PERPLEXED BY THEIR BOOING there can be comprehensive research if there isn't some kind of testing. At least During this period Harlan was asked by the New York Times. Seven years after its deliv­ their contribution. overseas interlude which helped instill in ery, black writer William Ferris termed it his character the contradictory complexity "the noblest exhibition of the Negro's gift PIXLEY KA ISAKA SEME typical of his time. of speech" in his book, The African Abroad. Seme belonged to the first generation of Seme declared in his speech that the glo­ Africans determined to play the game in a ries of Africa's past proved the potential for HON. CHARLES 8. RANGEL world where whites made the rules. He was greatness in its future, despite the subjec­ OF NEW YORK born into a rich Christian family in south­ tion if knew in his time. "Oh, for that histo­ IN THE HOUSE OF REPRESENTATIVES eastern South Africa on October 1, 1881, rian who, with the open pen of truth, will just after the proud Zulu kingdom to which bring to Africa's claim the strength of writ­ Monday, July 13, 1987 his ancestors had belonged was conquered ten proof. He will tell of a race whose Mr. RANGEL. Mr. Speaker, in the face of by Britain. the fire of former years. He will write that apartheid, I have taken this opportunity to His brilliant performance at Inanda Mis­ in these later days when Earth's noble ones renew the memory of Pixley ka lsaka Seme in sion School in his native land attracted the are named, she has a roll of honor, too, of attention of the American clergymen run­ which she is not ashamed. The giant is the minds of my colleagues. ning it. In the late 19th and early 20th cen­ awakening.'' Seme was the first black South African to turies, American missionaries arranged for In ringing words which anticipated those attend Columbia College, where he won the several dozen young black South Africans to of Senegalese poet Leopold Senghor and Curtis Medal for Oratory with his speech on study in the U.S., and Seme was one. They others in the Parisian Negritude movement "The Regeneration of Africa," and the second sent him to the Mount Hermon prep school of the 1930's, he concluded, "The regenera­ black South African ever to obtain a law in Massachusetts, where he received a classi­ tion of Africa means that a new and unique degree from Oxford University. cal education. There he also acquired a rep­ civilization is going to be added to the world. Pixley ka lsaka Seme's exceptional, West­ utation as nobody's fool: the 1902 school The most essential departure of this new ern education served him well. His outstand­ yearbook said he was "a born musical in­ civilization is that it shall be thoroughly strument agent-does others just a little spiritual and humanistic-indeed a regen­ ing abilities in oratory and political activism before they do him." eration moral and eternal." were ultimately acclaimed worldwide, ranking During the four years at Columbia which Seme combined a commitment to the en­ Seme among the first generation of Africans followed, Seme focused on subjects related largement of the horizons open to black who were able to play hardball in the white to Africa, black people and the modern South Africans with a faith in its attain­ ballpark. The African National Congress, a world. He took courses in anthropology, his­ ment through persuasion of loyalty to Brit­ mass movement dedicated to intertribal unity tory and political science, like other African ain, rather than confrontation. His ideal and multiracial democracy which has been a students anxious for scientific responses to put him in touch with black reality in the liant." Some 60 years later, one of his col­ "The giant is awakening," he said in a U.S. Like many classmates, he lived in lege friends, the Chinese diplomat V.K. prize-winning student oration, and his rented rooms off-campus Nelson Mandela, is well known, few people 135th-the first two blocks in the area study law at Oxford. He was an Oxford con­ are aware that his movement was founded where blacks settled. temporary of Alain Locke, the first black by a Columbia College graduate: Pixley ka "My ambition," Seme said at the end of American Rhodes Scholar, who later Isaka Seme '06. his college days, has been to study the broad became a leading light in the Harlem Ren­ The creation of the organization leading features of American life. I have tried to aissance movement of the 1920's. While in the fight against apartheid was, however, learn those things that will benefit my Britain, he was also named to represent his July 13, 1987 EXTENSIONS OF REMARKS 19599 people in South Africa by the Transvaal Congress's swing to the left in the late 20's, leading experts as the heir apparent to the Province Native Congress, a black political when the growth of black trade unions and internationally condemned apartheid organization. Working with a delegation of the Garveyite movement stirred the black regime. Even those who are not particularly liberals sent from South Africa, which in­ masses. A.N.C. president James Gumede favorable to the movement-such as the cluded Mahatma Gandhi, he vainly at­ <1927-30> and his followers favored militant South African business community, the tempted to persuade the British govern­ tactics, one man-one vote and an alliance British Foreign Office and the U.S. State ment to veto a bill granting his country a with the Communist Party . Making waves in this fashion equation. Mary Benson's appraisal of On top of his studies and activism, in Brit­ was anathema to the old-timers behind Seme's legacy thus appears on the mark: "If ain he also had to cope with money prob­ Seme's candidacy. Seme's opponents Seme failed personally in the 1930's, his ear­ lems. A rinderpest epidemic had devastated charged that they preferred drinking tea in lier achievement is what matters more. The his family's cattle wealth, while vacation the parlors of white liberals to demonstrat­ foundation of the A.N.C. was a positive act work was harder to find than in America. ing in the streets. · of unification rare in South African histo­ Nevertheless, Seme perservered, becoming Seme's victory turned the A.N.C. away ry." the second black South African to qualify as from the African workers and peasants, the an attorney. vast bulk of the black population, and ••• FOR GOD AND THE ZULU PEOPLE In 1910, just as South Africa was becom­ launched it into a self-destructive spiral of In a letter supporting Pixley Seme's appli­ ing an independent dominion, Seme re­ petty politicking. He revealed a disturbing cation to the Mount Hermon School, the turned home, "able, ambitious, impatient, will to dominate, sacking four colleagues on Reverend C.S. Pixley, a missionary who humorous, but a bit of snob," as South Afri­ the national executive committee and stack­ knew the young man in Natal, predicted can historian Mary Benson wrote in 1963. ing an A.N.C. convention to ensure his re­ that "Seme Isaac ... will be a man who Though Africans numbered three-fifths of election. "I must command all under me," may do much for God and the Zulu people. the country's population, in Johannesburg, he wrote to a colleague. While autocratic Try him for one year-have faith that his where he settled, they were not allowed to within his organization, towards the au­ bills will be paid." walk on the sidewalks, much less vote. More thorities he displayed a fawning attitude The problem of paying tuition was solved discrimination lay in store: in the new all­ which infuriated government opponents, by a combination of scholarships and earn­ white Parliament, proposals were soon afoot black and white. Of the chief administrator ings from Seme's summer jobs as a gardener to close skilled mining jobs and prohibit of discriminatory legislation, the Minister of and hotel porter. The issue of his later land sales to blacks. Native Affairs, he declared, "We all love achievements is a matter of record. Little While quickly achieving repute in the him and respect his person and his posi­ has been written about Seme's years in the legal profession (his first case, in which he tion." The collapse of A.N.C. structures U.S., but letters, applications for admissions secured a rare acquittal of a black accused during his presidency, both at grassroots and news clippings contained in archives at of a crime against a white, was widely and national levels, led other leaders to the Northfield Mount Hermon School give noted), Seme threw himself into politics insist on his replacement at the 1937 Silver us an idea of what the formative years of with characteristic energy, During 1911 he Jubilee convention of the organization he the future leader of black South Africa's lib­ organized a series of meetings aimed at had founded. eration movement were like. The archive fusing the existing African political group­ However, in the 1940's, when a revitalized materials have never been published. ings, divided by provincialism and personal­ A.N.C. became more assertive, Seme adapt­ We learn, for example, that the young ities, into one body, for which he drafted a ed to the times. He contributed to a 1942 man who would become a prize-winning Co­ constitution. manifesto in which the congress came out lumbia orator came to the U.S. in 1898 with Seme's greatest triumph came on January for majority rule for the first time. Though a rudimentary knowledge of English. He 8, 1912, when dozens of leading Africans a pillar of the black community as a well-es­ spent several months perfecting his lan­ from all around the country assembled in tablished lawyer, he also became friendly guage skills in New York before enrolling at Bloemfontein. Before a hall filled with with the rising stars of the A.N.C. Youth Mount Hermon, In Massachusetts. black men formally dressed in suits, frock League. He hired one, Anton Lembede, and Among his patrons at the school Walter Sisulu , was a New Jersey roared, "In the land of their birth, Africans cellmate>. The Youth Leaguers often held woman who offered to buy him new cloth­ are treated as hewers of wood and drawers meetings in Seme's law office, where one ing if the school would provide measure­ of water. The white people of this country could have glimpsed the likes of Oliver ments. The school obliged: in the archive is have formed what is known as the Union of Tambo and a page with Seme's shirt, jacket, vest and South Africa-a union in which we have no Nelson Mandela himself. trouser sizes. voice in the making of laws and no part in When Seme died in 1951, it marked the "Mount Hermon will always have a dear their administration. We have therefore end of the germinal phase of African poli­ spot in my heart," Seme wrote to school called this conference so that we can togeth­ tics in South Africa, and the opening of a principal Henry F. Cutler not long after he er devise ways and means of forming our na­ period of popular mobilization. His funeral, was graduated. "I pray that her blessed in­ tional union for the purpose of creating na­ conducted by the Anglican Bishop of Johan­ fluence may still be possible for poor boys tional unity and defending our rights and nesburg, Ambrose Reeves, drew a crowd of like us." He enclosed $1.00 for a subscription privileges." 2,000, including the entire A.N.C. national to Record of Christian Work, to be given to At the end of his speech he moved the cre­ executive committee. After the service, the a scholarship student. ation of a South African Native National committee met to plan a campaign of civil After prep school, Seme hoped to attend Congress. Cheers filled the hall, and the disobedience which in 1952 was to transform Yale, and Yale's registrar wrote to Mr. motion passed unanimously. The 32-year-old the congress from an elite coterie into a Cutler, "It goes without saying that especial Seme became the first treasurer of the orga­ mass movement. Tom Karis, the CUNY po­ consideration will be given to the fact that nization. politics, has written, "the old, exclusive influence of Yale in South Africa." The establishment of the Congress, which Congress had been buried with Seme." Seme failed Yale's admissions test, howev­ changed its name to African National Con­ Nevertheless, with hindsight, Pixley Seme er, and though he was encouraged to try gress in 1923, was a remarkable achieve­ may well prove to have been one of Colum­ again, he set his sights on Columbia. He ment. It was the first national organization bia's most influential sons. Though the later wrote to Mr. Cutler that Columbia "is to give a voice to indigenous leaders in Afri­ A.N.C. has changed in ways which probably a very fine college. I could not have made a can country and served as a model for would have startled him, in important ways better choice. The students as well as the others elsewhere. However, unlike later it remains the organization he founded. De­ professors make it very pleasant for me." movements, it was neither militant nor spite its ups and downs and changes of line Toward the end of his freshman year, mass-based. It was an alliance of African over eight decades, since Seme's day it has Seme was profiled in The Boston Journal. petits bourgeois and aristocrats who favored established a record of organizational conti­ Headlined "Royal Zulu Willing to Become a a "qualified franchise" permitting only the nuity, commitment to inter-tribal unity and Valet," the article highlighted Seme's propertied minority of blacks to vote. faith in multiracial democracy unrivaled search for summer work as a "useful man to While Seme's great achievement was the elsewhere in Africa. Although it was banned a gentleman." Then planning to become a creation of the A.N.C., his term as its presi­ by the South African authorities in 1960, it physician, he told the Journal, "There are dent (1930-37) nearly destroyed it. He was has rebuilt its guerrilla army and internal no native doctors who understand native elected by conservatives alarmed by the support, and today is regarded by many medicine. And as the Zulus are distrustful 19600 EXTENSIONS OF REMARKS July 13, 1987 of foreigners, it is only one of their own race "Why should it take so long?" he asked Then Mike Griffin went to a blackboard who can teach them the value of modern his deputy, Brig. Gen. Malcolm O'Neill, one and sketched out APL's scheme: a Delta medicine and surgery." January day in 1985. "Well, sir," O'Neill an­ launch; the second and third stages separate The 1906 Curtis oratory contest, whose swered, "they want to solve all the technical and perform a series of maneuvers to gather judges included Dean John Howard Van issues with a high degree of certainty." data on ICBM characteristics; then a climat­ Amringe and Professor Brander Matthews, "There comes a time," Abrahamson said, ic intercept in which the third stage seeks propelled gold medalist Seme to local fame, "you have to start doing something. Then out its second-stage prey. with writeups in many New York newspa­ you learn things you'll never learn in a labo­ There was momentary silence; a few tech­ pers. One clipping in the Mount Hermon ratory." nical questions; but no one could find a flaw file recounts how the news of the prize re­ Abrahamson felt it was time for a chal­ in the basic concept. Some admired its sulted in an invitation to Seme from the lenge-a real space intercept. Both men genius, but knew it entailed massive techno­ New York Board of Education to deliver a were familiar enough with the physics of logical challenges. Few believed it could be series of lectures entitled "Life in Zulu­ the thing to know it wouldn't be easy. done in a year and within APL's $150-mil­ land." The talks were to be accompanied by Indeed, it would be like driving a golf ball lion estimate. stereopticon views of actual scenes from life off a tee in New York and hitting it with a among the Zulus. rifle shot fired from an airplane flying NO BUCK-PASSING -MYRA AI.PERSON. somewhere over Maryland. "See what you Abrahamson and O'Neill ordered APL to can do," Abrahamson told O'Neill. "And see move ahead. Overseeing the project: Mi­ if it can be done in one year." chael Rendine, an Air Force lieutenant colo­ OUR MOST SUCCESSFUL SDI One year. To do what had never been nel from New Jersey with a strong back­ EXPERIMENT done. ground in engineering management. "Your ROUGH AND TUMBLE charter is to make this thing work," O'Neill had said. "If I'm not around, call Abe. If General O'Neill began exploring the prob­ he's not around, make a decision. If this HON. JIM COURTER lems with Mike Griffin and John Daassou­ OF NEW JERSEY goes down in smoke, you will be in the cock­ las, two aerospace engineers at the Applied pit." IN THE HOUSE OF REPRESENTATIVES Physics Laboratory of Johns Hopkins Rendine was being told to lead, not just University. The interceptor's task would be manage. Monday, July 13, 1987 especially difficult since ICBMs climb at As the mission developed, it became ap­ Mr. COURTER. Mr. Speaker, plans for the varying rates of acceleration mainly because parent that both the second and third defense of our country against strategic nucle­ of weight changes as fuel is burned off. There was also the plume problem. While in stages could act at various times as an ar weapons know no greater obstacle than ICBM. The APL team assembled an array of the ill-founded view that SDI technology would earth's atmosphere, the mass of fiery gases blossoms out behind the ICBM. But when it cameras, radars and electronic sensors to be impossibly complicated. Some scientists reaches the relative vacuum of space, the help achieve the difficult intercept, as well and politicians hold to that view, and some plume spreads out until it envelops the mis­ as paint a detailed picture of how an ICBM citizens are ready to believe them. But there is sile. Could an interceptor's sensors find the would appear from space. They included an nothing bizarre or implausible at all about "hard body" of the rocket within the gassy ingenious laser radar to achieve exact dis­ tance measurements, built by McDonnell shooting down an incoming ICBM. It can be camouflage? Not easy problems to solve in three years, Douglas in record time. To detect and chart done and, as the following article by Ralph the hot missile exhaust plume and isolate a Bennett shows, it all but has been done. let alone one. But possible. And engineers love possibilities. Dassoulas and Griffin missile body within it, they selected one of Science made the intercontinental missile a gathered some of the best APL minds in the most reliable infrared sensors in the danger, and science can also make it obso­ rocket power, telemetry, radar and guid­ world-the front end of a Hughes Maverick lete. If even 30 or 40 percent of an enemy ance, and went to work. antitank missile. They also turned to salvo were destroyable, most foes would not The one-year deadline was typical of Gen­ Hughes for their interceptor-the tiny elec­ be foolish enough to risk U.S. retaliation by eral Abrahamson's theory of "rough and tronic brain and radar "eye" from a Phoe­ nix air-to-air missile to guide the third stage launching at all. tumble research" that breaks the confines of bureaucratic procedure and ignites inno­ to its target. Hughes engineers performed Those of my colleagues who have not yet the exacting task of adapting these devices read a detailed account of the Strategic De­ vation. "It made us change our usual way of thinking," recalls Dassoulas. APL couldn't to operate in space in less than a year. fense Initiative Organization's test last Sep­ wait for anticipated technological break­ Innovation abounded. Hughes people, for tember in which an Aries rocket intercepted a throughs. "We had to use what we could get instance, calibrated the Maverick sensor for Delta rocket over the Kwajalein Atoll will be off the shelf and adapt it to our purposes," the intense cold of space by aiming it into a interested in Mr. Bennett's article. Griffin says. $5 Styrofoam picnic cooler filled with liquid nitrogen. McDonnell Douglas formed a [From Reader's Digest, July 19871 Dassoulas, whose experience with missiles dates back to the mid-1950s, went "rocket "bullpen" at its Huntington Beach, Calif., TRIUMPH AT PAD 17 shopping." He chose the McDonnell Doug­ plant where engineers and craftsmen las Delta, which had been carrying pay­ worked side by side fabricating the two Everyone hopes it will never happen, but loads into space since 1960 with an enviable unique upper stages of the rocket, now hope may not be enough. A Soviet SS-18 record of success-in 177 launches it had dubbed Delta 180. intercontinental ballistic missile (ICBM> failed only 11 times. Paper work was cut to a minimum; the blasts out of its launch silo, headed for the The ideal target would have been a real more than 20 forms usual for a major de­ United States. Could it be stopped in its ICBM. But the 1972 U.S.-Soviet Antiballistic fense contract shrank to six. Meetings on "boost phase," the first ten minutes before Missile Treaty prohibits testing an air- or problems involved only those who could it releases its cargo of nuclear warheads? space-based weapon against a real ICBM. make decisions. No buck-passing; no "I'll Does this country have the technological Aware that the Delta rocket's second look into it." potential to build a defense against Soviet stage has its own engine and would Rendine constantly reminded engineers ICBMs? go into orbit with the third stage, and technicians of the deadline. Moving his Wherever he went, Lt. Gen. James A. Griffin had a brilliant thought? "Why don't clenched fists up and down like pistons, he Abrahamson, director of the Strategic De­ we shoot down our own second stage?" he would imitate the relentless "dun-dun, dun­ fense Initiative Organization Depression fell over Pad into the flight, as the two stages were flying OF CALIFORNIA 17. NASA impounded all Delta hardware, in­ in formation over New Mexico. At that IN THE HOUSE OF REPRESENTATIVES cluding the 180. Colonel Rendine assembled point an Aries rocket was launched from the the launch team. "We picked the best White Sands missile range. Monday, July 13, 1987 rocket and the best people for this mission," he told them. "Nothing has changed our The Maverick's "eye" spotted the Aries Mr. DELLUMS. Mr. Speaker, I call your at­ minds." the second it left the earth and tracked it tention to a celebration of the distinguished General Abrahamson posted a large sign until the missile's fuel burned out. in the launch facilities: "When the going public service career of Mr. Naythinuel Ever­ Now the two Delta stages were over the ett, one of the truly dedicated and committed gets tough, the tough go to Pad B." Pacific, approaching the remote Kwajalein A NASA failure board met at the Cape to Island Missile Range, and it was time for community leaders who resides in the city of determine what had happened to Delta 178. the intercept. In the MDC, Mike Rendine Oakland, CA. He will be honored in a gala Colonel Rendine soon proved to be a com­ evening tribute on July 17, 1987. I would like bined diplomat, lawyer, cheerleader and pulled on a black jacket and a blue baseball "obnoxious s.o.b.," goading the board to cap with "Top Gun" printed on it. to sketch briefly some of the outstanding ac­ move through the investigation and "release When their orbital paths had taken them complishments that Mr. Everett has made, in my hardware." exactly 138 miles apart-a plausible distance order to share them with my colleagues. On May 16, the huge first stage of Delta between a Soviet ICBM in its boost phase Mr. Naythinuel Everett was born on July 18, 180 was erected on l 7B. McDonnell Douglas and an orbiting defensive missile-the "End technicians had worked around the clock to Game" began. Tiny jets on each stage 1920, in Butler, AL. His formal education make 80 modifications to the rocket to avoid coaxed them until they were almost facing ended at the sixth grade. His additional edu­ a failure like l 78's. each other. Their main engines fired. The cation included some junior college courses By late July the two upper stages had second stage held a steady course, but the but mostly he learned through experience and been joined to the first. At the top of the launch tower, a dust-free, air-conditioned third came looking for it in the black fast­ participation. ness of space. It was the most difficult kind "clean room" enclosed the upper stages. Mr. Nate Everett is a political establishment There, technicians made final fixes. Tower­ of intercept. The television camera on the ing above them in the fluorescent light, fes­ second stage saw doom approaching, at first not only in the east bay; his contributions are tooned with a variety of sensors and topped as a small white dot against the blackness. known throughout the United States. Mr. Ever­ by the Phoenix radar seeker, Delta 180 The dot quickly grew to a ball of white fire ett and the Reverend Martin Luther King, Jr. looked like a pile of sporting goods with a as the Phoenix seeker, like some cosmic organized the first civil rights March in Bir­ barber pole perched on top. bulldog, fastened on its target. mingham, AL. Throughout his life Nate Everett Soon a smooth aluminum fairing covered As the telemetry numbers streamed in, ev­ has concentrated his activism and organizing the odd shapes, and they stood ready for eryone in the control room waited tensely space-a testament to the calculations and in poorer communities. Mr. Everett has been a for the abrupt cutoff of information that political fixture in the bay area for many of his craftsmanship of people across the United would mean a hit. Over Kwajalein 8000 States who, despite grueling schedules, had 67 years. Many of our bay area elected offi­ delivered the goods on time. miles away, a brilliant flash lit up the sky. Mike Rendine heard the words: "We have cials owe their current political status to the On the Phoenix was a Chiquita Banana loss of data." The room exploded. Men who organizing skills of Mr. Everett. Mr. Everett sticker, a talismanic tradition ever since a had seen missile engineering move from the has participated in, or served in some elected technician stuck one on the first Phoenix slide rule to the fourth-generation computer before its successful flight in 1966. Affixed capacity to, a number of organizations: the tried, but failed, to hold back tears. General Muleskinner Democratic Club, the Alameda to a bracket on the third stage, at Mike Abrahamson jumped up, clapping his hands, Rendine1s request, was a St. Christopher County Democratic Central Committee, the medal. and ran into the control room to congratu­ Emergency Health Board, the East Oakland late "the players." In the end, the Delta 178 failure cost the Health Alliance, the Oakland Tenants Union, 180 program only three weeks' delay. It would take months to evaluate all the the National Tenants Union, Welfare Rights Launch was finally set for September 5, data produced during the mission-it turned Organization, the Oakland Black Caucus, the 1986. out the Phoenix had hit within 30 inches of dead center. But it was immediately appar­ Black Unity Council, the NAACP local chapter, THE MISSION ent that exceptional successes had been and the Citizens for Political Representation, At exactly 11:08 a.m., Delta 180 left Pad achieved in all four critcial functions of mis­ to name only a few. l 7B in a flawless liftoff. At NASA Mission sile defense: detection, tracking, intercep­ For the last several years, he has spear­ Directors Center . Rendine, Griffin tion and electronic management of the headed Democratic precinct activities in east and Dassoulas sat side by side at consoles. "battle." "And we did this with existing Behind them, in back of a glass partition, technology," noted General O'Neill, "with­ Oakland. Nate Everett has served on my ex­ sat Generals Abrahamson and O'Neill. out the tremendous advances in guidance ecutive-advisory-committee since its forma­ Forty-five minutes later, the second and and high-speed computing that are now be­ tion, and has always participated in the ongo­ third stages were in 17 ,500-m.p.h. orbit, still ginning to come on line." ing discussions which have at times led to dif­ attached, 138 miles above the Indian Ocean. By no means did Delta 180 surmount all ficult decisions which I have taken under con­ They then separated; the second stage fired sideration when deciding on which issues and its engine briefly, while the array of sensors the challenges involved in building a missile on board explored the mysteries of missile defense. Formidable problems remain, such candidates to support or not. I have often exhaust plumes. as making interceptors small enough, syn­ sought his counsel on important issues. chronizing their complex orbits and control­ Then, engines-off, the two stages, like ling the vast system. But the mission an­ It pleases me to join in this impressive cele­ racing roller coasters, traveled separate or­ swered many questions which will speed the bration of Mr. Nate Everett's magnificent bital paths in the same direction. Now the career as a community leader; to congratulate third stage had a brief opportunity to play development of an effective system, wheth­ the role of a Soviet ICBM-in this case, a er it employes missiles or laser and high­ him on his extraordinary accomplishments; "cold body" coasting in space just prior to energy beams. and to wish him the very best of success for release of its warheads. Louis Raburn, senior director of Delta the future. I hope that he will continue his ad­ The sensor equipment on the second stage programs for McDonnel Douglas, summed vocacy of activism. watched it, pouring data back to earth in an up the most important lesson: leadership unprecedented torrent of radio signals. and inspiration can unleash America's tech­ These were recorded by 38 radar installa­ nological potential. "We in the industry tions, six airborne observation posts and 31 hear SDI critics constantly say it can't be satellite links. Not even the moon or shuttle done," he said. "All we ask is, let us try." 19602 EXTENSIONS OF REMARKS July 13, 1987 LESSONS FROM COLONEL sian Gulf. I oppose this call for retreat and After all, it is their oil and not ours that is NORTH voted against the amendments to prohibit the flowing through the gulf. They should join reflagging of Kuwaiti tankers and to delay the us in any military action. If they don't act, why should we? HON. LES AuCOIN reflagging for 90 days. This objection fails on four counts. First The liberal left's siren song of retreat and OF OREGON of all, it is "their oil" in only a technical surrender has become the disease of Ameri­ IN THE HOUSE OF REPRESENTATIVES sense. It is true that the Europeans and Jap­ can foreign policy on Capitol Hill. Establishing anese import more gulf oil than the U.S. Monday, July 13, 1987 a set of preconditions-which the liberal left does. But oil is fungible, and the U.S. im­ Mr. AuCOIN. Mr. Speaker, reactions from knows can never be met-before the United ports almost half its oil. Were the gulf shut public and press to the testimony of Lt. Col. States is allowed to act to protect its interests, down, our allies would have to get it else­ the liberal left disguises is policy of retreat and where, thus bidding up the price. If this re­ Oliver North have included everything from sulted in a panic, as happened in the oil accolades to accusations. Eventually, howev­ surrender as multilateralism. shock of 1979, all oil importers, including er, we will have to get beyond the question of Charles Krauthammer wrote an excellent ar­ the U.S. would be badly damaged. whether Oliver North deserves a medal or a ticle for the June 22, 1987, issue of Time Second, this scenario-"their oil" in the sentence and reach the policy implications of magazine. His article strips away the camou­ gulf, "ours" safely elsewhere-is not just this extraordinary affair. flage of rhetoric used by the liberal left and false, it is beside the point. The reason for Among the most judicious observations I lays bare its real intentions, the retreat and reflagging Kuwaiti tankers has little to do have seen about North and his conduct in this surrender of American interests throughout with securing Western oil supplies. There is the world. I call this article to the attention of no new threat to world oil supplies. Iran has affair were those published by the Oregonian long threatened to close the Strait of of Portland, OR, in an editorial July 1O. I com­ my colleagues and insert it in the RECORD. Hormuz and long desisted, for the simple mend it to my colleagues and to the adminis­ IF NECESSARY, A SUPERPOWER ACTS ALONE reason that nearly all its own oil flows tration in the hope that a little wisdom can go Since Viet Nam, Congress has muscled its through the strait. And the tanker war in a long way. way into the formulation of American for­ the Persian Gulf has been raging for almost As THE SPIT TuRNS • • • eign policy, first with the War Powers Reso­ four years, during which time the world has lution and then with a baroque assortment seen the greatest oil glut and sharpest price Final judgments await further testimony, of Boland amendments. Now Congress is de­ collapse in history. The Administration but as Lt. Col. Oliver North is turned slowly termined to pronounce on the Persian Gulf. wants to protect Kuwaiti oil not because the on the spit of congressional investigation, But Congress does not know what to say. In West needs to buy Kuwaiti oil, but because his presentation produces initial reactions. the past two weeks it has been toing and Kuwait needs to sell it. Among them: froing, its actions best summarized by Con­ Third, the British and the French, who North has admitted to lying so often, gressman George Gekas, who said on the have powerful navies, are in fact on patrol about so many things, to so many people floor of the House, "We are confused. If you around the gulf. As for the West Germans that it is a wonder that the Iran-Contra are not confused, I am, and I am willing to and the Japanese, they have no global fiasco did not self-destruct earlier. Building admit it. That may be the difference be­ navies to send. Shall America wait then for as self-deceptive and dangerous as building Congress will not, however, allow confu­ the Canadians and Italians before venturing the supports of one's house out of water­ sion to deter, Instead, it is trying to legislate back into the gulf? As Secretary Shultz· soluble cement. its confusion with a series of stalling ac­ points out, the British have two frigates and For all North's air of earnestness and sin­ tions. First the Senate, then the House a destroyer in the area, which is more, pro­ cerity his testimony underscores again that voted to block Administration plans to put portionately, than the U.S. has. The French truth 'ts an early and frequent victim of the Kuwaiti tankers under U.S. Navy protection also have warships in the region protecting zealot. unless they got a report from the President their own vessels. Shouldn't they be acting Zealots are misplaced in the sensitive on the risks and dangers. A report is due with the United States to protect American­ policy making arenas of our government be­ soon, which means Congress might actually flagged ships? The answer is that they did cause they willingly evade checks and bal­ have to make a decision on a plan that the join the U.S. in a similar action in Lebanon ances to advance their visions of Revealed Administration first presented to the Senate four years ago and woke up one morning to Truth. The single-minded Oliver North Armed Services Committee and the House find that the U.S. had "redeployed" its would be well-placed in the next foxhole, Foreign Affairs Committee in March. At Marine force to the Mediterranean and left but not at the next desk at the National Se­ which time, pre-Stark, congressional leaders the French high and dry. They have curity Council. showed little interest in the issue. Post­ learned that American ambivalence about The amount of self-confessed lying at Stark, they discovered that the Persian the use of force abroad is such that it is North's level is shocking. Yet, it is not sur­ Gulf is a dangerous place and went into a unwise, indeed reckless, for any ally to risk prising. Deceit also has been a standard frenzy of directionless activity. Except for a joint venture with the U.S. item on the menu at higher levels. See the Claiborne Pell, chairman of the Senate For­ Fourth, even if all of the foregoing were Richard Cohen column on the previous page eign Relations Committee. He knows where not true, the idea that a superpower does for examples. he is headed. He introduced a bill CS1327) not act except in conjunction with allies has North's testimony is revealing tawdry that prohibits the Administration from re­ become the disease of American foreign symptoms of the the so-called Nuremberg flagging Kuwaiti vessels but urges a "United policy. Central America is without a doubt a defense; that is, the notion that any behav­ Nations peacekeeping force to protect non­ vital American interest, but we hear, Amer­ ior can be condoned if the subordinate was belligerent shipping in the Persian Gulf and ica must not act unless Contadora or the following orders. That defense must be to seek an early and to the Iran-Iraq war." OAS or Costa Rica-a country with no spurned and rejected as immoral and hostile Jeane Kirkpatrick, who spent camouflages, ought not to be debating er, offer wide expanses of floor space unob­ some time there, had a crisper view. She whether our defense budget should be $303 structed by columns. called it a "Turkish bath" where the Third billion or $289 billion. Thirty billion ought Michael Bennett, a well-known dancer and World can let off steam, denounce the West, to be quite enough to maintain all that Broadway producer, purchased 890 Broad­ air resentments and demand transfers of their foreign policy would require: a few nu­ way in 1978 for $750,000. Bennett was moti­ wealth. Its principal achievement is to gen­ clear missiles and a Coast Guard to patrol vated by the idea of creating a multi-pur­ erate a billion pages of paper every year. the Florida Keys.-CHARLES KRAUTHAMMER. pose dance center for New York's thriving This U.N. is not even able to field peace­ dance community. His plan was to remodel keeping forces in precisely the areas, like the building into a facility that would in­ the Sinai, where they are most needed. SPACE CHASE POSES THREAT TO NEW YORK CITY ARTISTS clude rehearsal studios for public rental, a When Egypt and Israel signed a peace commissary, and a small 250 seat theater. treaty that effectively ended the possibility After purchasing 890, Bennett subse­ of a major war in the Middle East, the U.N. HON. TED WEISS quently poured millions of dollars into ren­ called its peacekeepers home, since this was OF NEW YORK ovations, and on several levels, his efforts not a peace that it .approved. The U.S. had IN THE HOUSE OF REPRESENTATIVES proved to be quite successful. So successful, to field a makeshift substitute force. This in fact, that in 1981 American Ballet Thea­ U.N. is hardly capable of any action. It is Monday, July 13, 1987 tre, one of the largest classical ballet compa­ certainly not going to do the West's dirty Mr. WEISS. Mr. Speaker, as the representa­ nies in the country agreed to move in. ABT work in the Persian Gulf. was attracted by the reasonable rent and ex­ What about the Security Council? If Pell tive of a district in which perhaps the greatest concentration of our Nation's artists work and cellent potential of the facilities. By mid- really wants the Security Council tp protect 1986, the Alvin Ailey American Dance Thea­ the gulf, what he means is for the U.S., reside, much of my work in Congress has ter has also been attracted to the building, Britain, France, China and the Soviet Union been focused on assisting and promoting the and considered joining ABT and Feld as the to act together. But this is absurd. China, arts community. third major tenant. The idea of having for example, is supplying Iran with the very Today, soaring real estate costs in New three very different dance companies, Feld missiles it would use to target any peace­ York City have drastically reduced the avail­ Ballet, American Ballet Theatre and Alvin keeping flotilla. And even if united action ability of space for artists and arts organiza­ Ailey American Dance Theater in the same were possible, it would not be desirable. building was at once exciting and irresisti­ What the "U.N. route" really means, after tions, threatening our ability to remain the cul­ tural capital of the country. I have been very ble. all the disguises are removed, is that the But as Cahan reflected on the Feld Bal­ U.S. should act in the gulf only with the active in efforts to secure affordable space for let's upcoming season that mid-September permission not just of allies but also of the our city's cultural institutions. afternoon, an unexpected phone call arrived Soviet Union. This amounts to ending West­ I would like to share with my colleagues an that would change forever the operations ern control of the gulf, which the British article which appeared in a recent edition of and outlooks of the three companies. maintained for a century and which the Dance/USA's Update. Dance/USA is the na­ THE PHONE CALL United States has been keeping for the past tional service organization for nonprofit profes­ 15 years, and turning it over to a joint part­ When Cahan lifted the receiver and nership with the Soviet Union. Because of sional dance. placed it to her ear, the familiar voice of what? Because in an accidental attack one This article chronicles the efforts of the Feld Bernard Gersten, Cahan's husband and ex­ Iraqi plane hit one American ship that was Ballet and the American Ballet Theatre, with ecutive producer of Lincoln Center Theater asleep in a war zone. the support of the Alvin Ailey American Dance was on the line. He told her that someone· To invite the Soviets to share the respon­ Theater, to purchase the building located at had telephoned him with some news, and he sibility, and thus the rewards, of controlling 890 Broadway for rehearsal, performance, and wanted to verify it. According to his source, the Persian Gulf would amount to the office space. It is a good example of the tre­ 890 Broadway had been put on the market, almost astonishing voluntary abdication of mendous obstacles facing arts organizations and the owner was looking to sell immedi­ a Western position in the postwar world. At ately, or at the very latest by year-end in least when the British ran out on their re­ trying to stay in the city, as well as the impor­ order to take advantage of 'last chance' tax sponsibilities in the gulf in 1971, they tant relationship between all levels of arts benefits. Cahan, suddenly in shock, had turned it over to an ally. But now Pell and funding-private, corporate, and governmen­ heard no such thing. others would like to offer the Soviets, who tal. The selling price was rumored to be have been lusting for the gulf since Roma­ The text of the article follows: around $15 million. Furthermore, there was nov days, a share of it. Gratis. BROADWAY DRAMA: THE SCRAMBLE FOR 890 speculation over the reasons Bennett had But the Democrats are not alone. Among HOW TWO COMPANIES SAVED A BUILDING FOR decided to try and sell. the others warming to this idea is Howard Cahan immediately made phone calls to Baker. "It's a unique arrangement that the DANCE determine just what was going on. One week Kuwaitis chose to invite both the United Manhattan. Dillingham at ABT and Cahan at Feld, had tutes a far-reaching and gratuitous Ameri­ The Feld company had moved into this rarely come into contact with each other. can capitulation. building ten years earlier in 1976, and with According to Cahan, it was only after they Have the Democrats or the Administra­ very little money, and a lot of sweat and became acquainted with each other as mem­ tion thought through the implications of a elbow grease contributed by Company staff bers of Dance/USA's Board of Trustees that 19604 EXTENSIONS OF REMARKS July 13, 1987 communication between them flowed more expressed a keen interest in helping to to meet their responsibilities as potential regularly. Dillingham was elected chairman offset the cost of building operations after partners in the purchase of 890, they would of Dance/USA's Board of Trustees and the purchase. Most hoped to be able to help have to redirect the entire focus of the orga- Cahan vice chair in June 1986. the companies in other ways. . nization away from the implementation of a Cahan was scheduled to meet Dillingham The boardmembers of ABT and Feld did home and touring season and toward fund­ for lunch on September 26 to discuss the what they could, but were under pressure to raising for the building. As a result, the upcoming Dance/USA 1988 National uphold their general operating obligations Ailey company was forced to sit on the side­ Roundtable. Before they could get to to the companies. Even boardmembers have lines and offer moral and some tactical sup­ Dance/USA business however, Cahan finite resources. The issue of the building port to the embattled protagonists in this shared with Dillingham the news that the was necessarily separated from that of the drama. sale of the building was imminent. Now Dil­ survival of the companies. Rumors were flying everyWhere. Newspa­ lingham was taken by surprise. The spectre OCTOBER: THE CRUELEST MONTH pers in New York called Cahan and Dil­ of having to search for new facilities loomed lingham constantly, trying to verify the un­ before them. On the morning of October 1, as the Feld Almost every dance-related person in New season was in progress, a reporter from the substantiated or trying to scoop their com­ York is aware of the space crisis in that city. New York Times called Cahan to verify petitors. One day, Dillingham, Cahan and Every week more casualties are counted as facts for a story on the imminent sale of the Hammond met with a group of people at dance companies are forced to relinquish building. Somehow word had gotten to the Lincoln Center to discuss the crisis. The their homes, as studios close, as venues for media that something significant was about next day, articles appeared in several papers performance opportunities simply disap­ to take place. The story appeared the next announcing that Feld, ABT and Ailey were day and the tone of the article was not moving to Lincoln Center. pear. But who would think that a building good. so finely adapted to dance and inhabited by A seemingly endless number of meetings two major companies and some related In desperation, Cahan placed a call to occurred between Dillingham, Cahan, city dance businesses would also face such a Kitty Carlisle Hart, chairman of the New officials, lawers, funders, and others. The crisis? York State Council on the Arts. During the Boro President of Manhattan was button­ Dillingham was optimistic-surely a way course of the conversation, Hart referred holed, as was the city controller. Both ex­ could be found to stay in 890 Broadway. By Cahan to Lawrence Wein, a prominent New pressed concern and promised to help influ­ the time lunch had ended, they'd decided to York attorney and philanthropist who has a ence the city council to act. The City of New buy the building. strong interest in real estate and the arts. York eventually pledged $25,000 to help the Wein is known for his purchase of the companies, but because no municipal body MONEY IS EVERYTHING Empire State Building in 1961 for $33 mil­ like an arts council exists in the city to Cahan and Dillingham arranged an emer­ lion. Cahan immediately called Wein, but handle such matters in an expeditious gency meeting that occurred two days later heard nothing for several days. manner, the money could not be granted in with Robin Wagner, noted theatrical design­ On October 7, Wein called Cahan, and mid-October, and as late as the end of er, to discuss the finances of the building. made what in retrospect was an incredible March has not yet been disbursed to the The objective was to determine how much offer: if ABT and Feld could raise $5 million companies. money was needed to save the building as a by mid-December, he would give the compa­ home for dance and assorted dance related nies one bank mortgage at 8% interest, and These October activities, spilling over into organizations and businesses. one mortgage from himself at 5% interest, the month of November, were supplemented They learned that the estimated costs of for a total of $10 million. He would put $1 by a growing interdependence and negotia­ maintaining the eight story, late 19th centu­ million down on the building to buy the tion between the two companies. Dil­ ry building were approximately $1.8 million contract, but he didn't want title to the fa­ lingham and Cahan, with lawyers from a year. When added to the projected costs cility-that, he said, should go to the com­ their respective organizations, hammered of buying the building and paying legal fees, panies. The only catch was that the compa­ out a difficult, 19 page tenancy agreement Cahan and Dillingham were looking at a nies had to agree to those terms within two which defines the relationships between the project that would ultimately cost nearly days. two partners, their financial responsibilities, $20 million. That amount was higher than By October 9, both ABT and Feld had strategies for the long-term financial stabili­ ABT's total yearly budget, and eight times signed on to Wein's offer, and had begun ty of the building, etc. An organization, to the annual budget of the Feld Company. the break-neck, hair-raising capital cam­ be separate from both companies but con­ The next step was to rally the forces. Mik­ paign that would hopefully accrue $5 mil­ trolled by both companies was established hail Baryshnikov, artistic director of Ameri­ lion by December 15. to run the building. can Ballet Theatre and Alvin Ailey, founder Mid-October was electric with activity, as The month of November sped by. Time , and artistic director of the Alvin Ailey the staff of the Feld Ballet was quickly seemed to be running out. American Dance Theater, dashed off letters transformed into a fundraising organization, to Bennett pleading for time. Cahan and and Dillingham prodded and encouraged his DEADLINE Dillingham, along with selected members of board of trustees to find needed dollars. The their respective boards of trustees, went to Ailey company, which had been negotiating Suddenly, it was December 14, and the the New York City Council and the Mayor's with Bennett before the announcement of scheduled meeting with Wein was only a office to lobby for assistance. the sale, was anxious to come into the deal day away. One basic question rolled off the Meanwhile the first monies arrived in the with ABT and Feld, but several obstacles sat lips of practically everyone in the New York form of a $50,000 emergency grant from the squarely in the way. dance community: had Cahan and Dil­ National Endowment for the Arts Dance One obstacle was the Company's lease lingham been able to raise the $5 million as Program. A check from the New York State with the owners of its offices and studios at required by Wein? Council on the Arts for an additional 1515 Broadway. The school, studios and of­ As of early December, the two companies $50,000 followed, and although the com­ fices occupy approximately 20,000 square had commitments that totaled $4.2 million. bined total of the checks was only a drop in feet in the Times Square building. Under Each company had contributed $1.l million, the bucket, both Cahan and Dillingham the terms of their lease agreement, the and another $2 million was pledged by a admit that symbolically those first checks Ailey company pays $20 a square foot, or ap­ donor. However, two days before the meet­ from public sector funders were very impor­ proximately $400,000 a year. A provision in ing with Wein, the $2 million pledgee pulled tant. the agreement however, would permit the out, leaving the companies with a grand Raising funds from private sector founda­ price per square foot to rise to $30 by 1988. total of $2.2 million, substantially short of tions, however, proved to be much more dif­ The result of that kind of increase on the their goal. ficult. Cahan states that no one familiar Company, says Bill Hammond, executive di­ Cahan and Dillingham decided to take the with the real estate situation in New York rector would be that more operating money money they had to Wein and beg. When was shocked at the prospect of two, maybe would go into rent than into the school and they arrived at his office, however, they three major dance companies being set out artistic sides of company operations. There­ found that begging wasn't necessary. Wein on the street. But because of their missions fore, the thought of partially owning a accepted the $2.2 million as fulfillment of and mandates, some foundations were in a building with ABT and Feld was very attrac­ the agreement, and executed a $12.3 million position to help, some were not, and others tive. The problem was whether or not his mortgage for the partners at 5% interest to could only offer concern for the companies' current lessor would let the Company out of be repaid within three years. A net saving of well being. the original agreement. $500,000 due to the nonprofit, tax-exempt Many foundations are restricted from con­ Another obstacle to the Ailey company's status of the companies reduced the total tributing money to "brick and mortar" participation was the fact that all fundrais­ purchase price of the building to $14.5 mil­ projects. When approached by Cahan and ing activities had to be put on hold while lion. Wein also expressed an eagerness that Dillingham, however, these organizations the Company presented its season. In order the Ailey company move in. July 13, 1987 EXTENSIONS OF REMARKS 19605 After what Cahan describes as an incredi­ UNKNOWN HEALTH CONSE- sion until it can be proven the work does ble roller coast ride, and Dillingham de­ QUENCES OF CHILD LABOR not harm pre-pubescent children. scribes as an experience very much like the The United States can afford to be protec­ uncontrolled mayhem of the silent movie tive, even in the absence of sure evidence clasic, "The Perils of Pauline," their respec­ HON. DONALD J. PEASE that pesticides damage children's maturing tive companies took title to 890 Broadway OF OHIO reproductive systems. on December 19, 1986. It was a merry IN THE HOUSE OF REPRESENTATIVES In developing nations, people often feel Christmas and a happy Chanukah for some Monday, July 13, 1987 constrained by economics to take the oppo­ very tired people. site tack: Don't ban something unless you Mr. PEASE. Mr. Speaker, as is often the know it's bad. case, human progress in one dimension raises Studies such as those being concluded by WHAT NEXT? new concerns and potential hazards in an­ Ms. Onyango and Ms. Naidu are among the other. Modern medicine has made it possible most precise examinations on work effects Although the new partnership must raise for many more children in developing coun­ on children. a great deal more money to pay off the tries to live beyond their first birthdays. The Ms. Naidu, director of the Unit for Child mortgage within three years, Cahan and quality of their existence is very much cause and Youth Research at the Tata Institute Dillingham are optimistic about the future. for concern for those children who are forced of Social Sciences in Bombay, has gone Already Wein has contributed another $1 beyond other studies that simply compared million to the groups, which reduces the to work at a very young age. Following is the working children with school kids, who are mortgage to $11.3 million. The Ailey compa- next installment of the Cox Newspaper series likely to come from wealthier families. ny is in the process of escaping from their entitled "Stolen Childhood" which ran on June In her survey, the control group often lease, and according to Bill Hammond, may 21, 1987. It reveals just how little is now consists of non-working children from the be free as soon as May 1987. Hammond re- known abut the potential harmful health ef­ same family as the worker. All the children, ports that the Company is prepared to take facts of very young children working at various workers and non-workers, were picked from on the challenge of raising $1.1 million so occupations. the same economic backgrounds to reflect that they can become the third equal part- The article follows: more exactly the effects of work and neu­ tralize the effects of different incomes. ner in the venture. [From the Atlanta Journal and The research team checked 1,100 working ABT is already renting some of its studio Constitution, June 21, 19871 and 500 non-working children in Bombay. It space to outside groups, including the MANY WORKING CHILDREN FOUND found work itself was less important to a Brooklyn Academy of Music, Broadway and MALNOURISHED AND DISTURBED child's nutritional status than the kind of off-Broadway producers, and dance compa-