24240 EXTENSIONS OF REMARKS September 16, 1987 EXTENSIONS OF REMARKS INTRAVENOUS SUBSTANCE hearing on "Pediatric AIDS" at Harlem Hospi­ venous drug users is high. Secondary consid­ ABUSE AND AIDS PREVENTION tal in New York City. To date, Harlem Hospital eration will be given to communities where the ACT OF 1987 has cared for at least 60 children infected with incidence of HIV infection among intravenous the HIV virus. At any one time, there are 8 to substance abusers is substantial. HON. CHARLES 8. RANGEL 12 such children in the hospital. Services that may be provided under this OF NEW YORK In Harlem, as in the Nation, most of these grant program include: IN THE HOUSE OF REPRESENTATIVES children contract the AIDS virus from their Prenatal care for women who are intrave­ mother during pregnancy or during the proc­ Wednesday, September 16, 1987 nous drug users; ess of delivery. Most of the infected mothers Services and financial assistance to parents Mr. RANGEL. Mr. Speaker, today I have in­ are either past or present intravenous drug of children infected with HIV; troduced the " Intravenous Substance Abuse users or have had sexual relations with some­ Services and financial assistance to encour­ and AIDS Prevention Act of 1987." one who has the virus, usually an intravenous age foster care for infants with HIV; Acquired immune deficiency syndrome­ drug user. It is easy to judge these women Counseling, education, and testing services Al DS-is perhaps the most pernicious enemy and simply condemn them for their behavior. ever faced by this Nation. This disease could Such posturing, however, will not prevent for women who are intravenous drug users literally destroy us from within. AIDS, however, more babies from becoming infected; it will and who are pregnant or at risk of becoming is not only a direct threat to our national not help those babies already afflicted with pregnant, to prevent the transmission of HIV; health and well being, it is also a deadly indi­ the disease; and it will not change the behav­ and cator of another disease infecting our socie­ ior of the adults who are transmitting this Counseling, education, and testing services ty-intravenous [IV] drug abuse. Intravenous plague. for women who are the sexual partners of in­ drug abuse is the second most frequent Preventing and reducing the transmission of travenous drug abusers and who are preg­ means of transmitting the human immunodefi­ AIDS among intravenous drug abusers is one nant, or at risk of becoming pregnant, to pre­ ciency virus [HIV], which causes AIDS. The of the most effective ways to prevent and vent the transmission of AIDS; $100 million is legislation I have proposad wouid authorize reduce the hetercsexua! er perinata! transmis­ provided for grants to prevent the spread of Federal funds for grants to expand drug abuse sion of AIDS. For that reason, I have intro­ AIDS related to intravenous drug abuse. treatment, establish prevention programs, and duced the "Intravenous Substance Abuse and Because minority communities are being provide services to reduce the spread of AI DS AIDS Prevention Act of 1987." This legislation disproportionately affected by AIDS related to through intravenous drug abuse. would provide $400 million for grants to intravenous drug abuse, the bill preference to The Centers for Disease Control report over expand drug abuse treatment services for in­ programs providing services to minority popu­ 40,000 cases of AIDS. They project 270,000 travenous drug abusers, for demonstration lations in any geographic area where there is cases by 1991. Since there is no known cure projects to reduce and prevent the incidence substantial intravenous substance abuse. for the disease, most of these individuals will of AIDS in infants and to provide support to Projects funded under this provision would die. infants who have AIDS, and for prevention include education and counseling outreach Among the reported cases of AIDS, hetero­ programs to arrest the spread of AIDS related projects for intravenous substance abusers sexual intravenous drug abusers constitute 17 to intravenous drug abuse. and school based and mass media efforts. percent. If the cases of AIDS among homo­ Specifically: The bill authorizes $200 million AIDS will not simply disappear. If we wait sexuals who are also IV-drug users are added for the Secretary of Health and Human Serv­ for a cure, many will die unnecessarily. It is to the heterosexual IV-drug users, intravenous ices to make grants to public and private non­ only through a concerted effort on the part of drug abuse accounts for approximately one­ profit entities to provide treatment services to all segments of the community and all levels fourth of all AIDS cases. intravenous substance abusers. of Government that we can purge our Nation AIDS is transmitted among intravenous sub­ The grants will enable these programs to of this disease. AIDS, like small pox and polio, stance abusers through the use and sharing make available to such abusers, and to their must become a disease of our past, not our of needles, syringes, swabs, or other drug-re­ sexual partners, counseling and education present and future. To ensure that this hap­ lated implements, contaminated with HIV in­ services to prevent the transmission of HIV pens, we must recognize the important link and testing to determine HIV infection. fected blood. AIDS can be transmitted rapidly between intravenous drug abuse and the among intravenous substance abusers in a Priority for the services will be given to geo­ spread of AIDS. We must provide treatment given geographic area. These individuals are graphic areas where the incidence of intrave­ for intravenous substance abusers and we only the first of the victims in the IV-drug use/ nous substance abuse is substantial relative must reach out to immunize those communi­ AIDS chain. Once a group of intravenous sub­ to the incidence in other areas and, simulta­ ties and populations most threatened by intra­ stance abusers becomes exposed to the HIV neously, the incidence of HIV infection is rela­ venous drug abuse. My bill would respond virus, they become the primary source for het­ tively substantial. Seventy-five percent of the specifically to these needs. erosexual and perinatal transmission of AIDS. funding under this section of the act will be re­ Although female and perinatal AIDS cases served for such areas. Another 25 percent of In closing, I urge my colleagues to join me constitute only a small proportion of AIDS the funding will be directed toward communi­ as a cosponsor of this legislation. It is essen­ cases, the association between these cases ties where the incidence of intravenous drug tial to the preservation of our national health and IV-drug use is startling. More than 50 per­ use is substantial and the incidence of HIV is and national security. cent of women with AIDS are intravenous not, but the development of HIV may be pre­ Mr. Speaker, I include the Intravenous Drug drug abusers. The second largest group of vented if sufficient treatment, counseling, and Abuse and AIDS Prevention Act of 1987 at women at risk for contracting AIDS are education services are provided to intrave­ this point in the RECORD: women who are the sexual partners of intra­ nous drug users; $100 million is authorized for H.R. 3292 venous substance abusers. There are current­ demonstrated projects to reduce or prevent To establish certain grant programs relating ly more than 500 pediatric AIDS cases. The the incidence of HIV infection in infants and to to acquired immune deficiency syndrome overwhelming majority of pediatric AIDS pa­ provide support to infants who have such in­ among intravenous substance abusers, and tients, infected through maternal transmission, fections. for other purposes were children of intravenous drug users. Priority will be given to communities where Be it enacted by the Senate and House of On July 27, the Select Committee on Nar­ the incidence of infant HIV infection is sub­ Representatives of the United States of cotics Abuse and Control, which I chair, held a stantial and the incidence of HIV among intra- America in Congress assembled,

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. September 16, 1987 EXTENSIONS OF REMARKS 24241 SECTION I. SHORT TITLE. Cb) REQUIREMENTS WITH RESPECT TO AC­ the incidence in infants of infections This Act may be cited as the "Intravenous QUIRED IMMUNE DEFICIENCY SYNDROME.-The with the etiologic agent for acquired Substance Abuse and AIDS Prevention Act Secretary may not make a grant under sub­ immune deficiency syndrome is substantial of 1987". section (a) to an applicant unless the appli­ relative to such incidence in other geo­ SEC. 2. FINDINGS. cant agrees that, in providing pursuant to graphic areas; and The Congress finds as follows: subsection treatment services to intrave­ the incidence, among intravenous sub­ <1) More than 38,000 ca;;es of acquired nous substance abusers, the applicant will- stance abusers, of infections with the etiolo­ immune deficiency syndrome have ( 1) make available to such abusers, and to gic agent for acquired immune deficiency been reported to the Centers for Disease the sexual partners of such abusers, coun­ syndrome is substantial relative to such inci­ Control, and more than 270,000 such cases seling and education services with respect to dence in other geographic areas; and are expected to be reported by 1991. preventing the transmission of the etiologic (2) give second priority to qualified appli­ (2) Intravenous substance abuser:> are the agent for acquired immune deficiency syn­ cants that will provide services under the second largest group in the United States drome; and grant in any geographic area described in that has AIDS. Of the cases of A.:DS report­ (2) make available to such abusers testing paragraph (l)(B). ed to the Centers for Disease Control, 17 for the purpose of determining whether (C) PROVISION OF CERTAIN SERVICES.­ percent are attributable to intravenous such abusers are infected with such etiolo­ Grantees under subsection Ca) may expend substance abuse and such abuse was a risk gic agent. grant funds- factor in an additional 8 perce-1t. (C) CONSENT TO TESTING.-The Secretary <1) to provide for prenatal care for women (3) HIV (the virus causing AIDS .I is trans­ may not make a grant under subsection who are intravenous substance abusers; mitted among intravenous substance abus­ to an applicant unless the applicant agrees (2) to provide for prenatal care for women ers through the use and sharing of needles, that the applicant will not, as a condition of who are the sexual partners of intravenous syringes, swabs, or other drug-related imple­ the receipt of substance abuse treatment substance abusers; ments that are contaminated witl' blood in­ services, require that an individual undergo <3> with respect to the parents of infants fected with HIV. testing described in subsection Cb)(2). infected with the etiologic agent for ac­ (4) HIV can be transmitted rapidly among (d) REQUIREMENT OF PROVISION OF SERV­ quired immune deficiency syndrome, to pro­ intravenous substance abusers in a given ge­ ICES IN CERTAIN GEOGRAPHIC AREAS.-The vide services and financial assistance to par­ ographic area. Once a group of intravenous Secretary may make grants under subsec­ ents for the purpose of aiding parents in substance abusers becomes exposed to HIV, tion Ca) only to applicants that will provide caring for, and providing support to, such such abusers become the primary source for services under the grant in a geographic infants; heterosexual transmission and perinatal area in which, in the determination of the <4) to provide services and financial assist­ transmission of HIV. Secretary- ance with respect to encouraging foster care (5) A disproportionate number of cases of ( 1) the incidence of intravenous substance for such infants and other means by which AIDS has occurred among members of mi­ abuse is substantial relative to such inci­ such infants can receive care and support in nority groups. More than 80 percent of such dence in other geographic areas; and settings other than hospitals; cases attributable to intravenous substance (2) the incidence, among intravenous sub­ (5) with respect to women who are intra­ abuse have occurred among Blacks and His­ stance abusers, of infections with the etiolo­ venous substance abusers and who are preg­ panics and more than 90 percent of hetero­ gic agent for acquired immune deficiency nant or at risk of becoming pregnant, to sexual and perinatal transmission AIDS syndrome- make available to such women counseling cases related to such abuse have occurred is substantial relative to such inci­ and education services with respect to pre­ among Blacks and Hispanics. dence in other geographic areas; or venting the transmission of the etiologic (6) More than 50 percent of women in the CB)(i) is insubstantial relative to such inci­ agent for acquired immune deficiency syn­ United States who have AIDS developed the dence in other geographic areas; and drome and to make available to such women disease as a result of intravenous substance (ii) may be prevented from becoming sub­ testing for the purpose of determining abuse. The second largest group of women stantial if sufficient treatment, counseling, whether such women are infected with such who are at risk with respect to infection and education services are provided to intra­ etiologic agent; and with HIV are women who are the sexual venous substance abusers. (6) to make such services and such testing partners of intravenous substance abusers. (e) ALLOCATION OF AMOUNTS AVAILABLE FOR available to women who are pregnant, or at (7) Most women with AIDS are in their GRANT PROGRAM.-Of amounts available pur­ risk of becoming pregnant, and who are the child-bearing years, and women infected suant to subsection en, the Secretary shall- sexual partners of intravenous substance with HIV may transmit HIV to any of their <1> reserve 75 percent for grants under abusers. children born subsequent to the mother's subsection to applicants that will provide (d) FUNDING OF GRANT PROGRAM.-Of the infection. In July 1987, the Centers for Dis­ services under the grant in geographic areas amounts appropriated pursuant to section 7, ease Control reported a cumulative total of described in paragraphs (1) and (2)(A) of the Secretary shall reserve 25 percent for 460 cases of AIDS among children under 5 subsection Cd>; and the purpose of carrying out this section. years of age at the time of diagnosis. Ap­ (2) reserve 25 percent for grants under SEC. 5. ESTABLISHMENT OF GRANT PROGRAM FOR proximately 80 percent of children with subsection to applicants that will provide PREVENTION OF ACQUIRED IMMUNE AIDS who were infected through perinatal services under the grant in geographic areas DEFICIENCY SYNDROME RELATING transmission were children of intravenous described in paragraphs (1) and (2)(B) of TO INTRAVENOUS SUBSTANCE ABUSE. substance abusers. such subsection. (a) IN GENERAL.-The Secretary may make (8) Preventing or reducing the transmis­ (f) FUNDING OF GRANT PROGRAM.-Of the grants to public and nonprofit private enti­ sion of HIV among intravenous substance amounts appropriated pursuant to section 7, ties for the purpose of enabling grantees to abusers is essential with respect to prevent­ the Secretary shall reserve 50 percent for provide counseling and education services ing or reducing the heterosexual and peri­ the purpose of carrying out this section. with respect to preventing the transmission natal transmission of HIV in the United SEC. 4. ESTABLISHMENT OF GRANT PROGRAM FOR of the etiologic agent for acquired immune States. SERVICES AND ASSISTANCE FOR RE­ deficiency syndrome directly or indirectly (9) To reduce and prevent the spread of DUCTION AND PREVENTION OF AC­ through intravenous substance abuse. AIDS related to intravenous substance QUIRED IMMUNE DEFICIENCY SYN­ (b) PREFERENCES IN MAKING GRANTS.-The abuse, additional Federal leadership and DROME AMONG INFANTS. Secretary shall, in making grants under sub­ support is urgently needed to expand treat­ (a) IN GENERAL.-The Secretary may make section Ca), give preference to qualified ap­ ment for intravenous substance abusers, to grants to public and nonprofit private enti­ plicants that will provide services under the promote efforts to prevent pediatric AIDS ties for the purpose of enabling grantees to grant to minority populations in any geo­ and provide better care for infants with carry out demonstration projects for reduc­ graphic area in which, in the determination AIDS, and to establish effective school and ing or preventing the incidence in infants of of the Secretary, the incidence of intrave­ community-based AIDS prevention pro­ infections with the etiologic agent for ac­ nous substance abuse is substantial relative grams. quired immune deficiency syndrome and for to such incidence in other geographic areas. SEC. 3. ESTABLISHMENT OF GRANT PROGRAM FOR providing support to infants who have such (C) PROVISION OF CERTAIN SERVICES.­ TREATMENT SERVICES WITH RESPECT infections. Grantees under subsection Ca) may expend TO INTRAVENOUS SUBSTANCE ABUSE. (b) PREFERENCES IN MAKING GRANTS.-The grant funds- Ca) IN GENERAL.-The Secretary of Health Secretary shall, in making grants under sub­ <1) to provide counseling and education and Human Services may make grants to section (a)- services described in such subsection public and nonprofit private entities for the (1) give first priority to qualified appli­ through outreach services to intravenous purpose of enabling grantees to provide, in cants that will provide services under the substance abusers; and accordance with subsection Cb), treatment grant in any geographic area in which, in <2> to provide education services described services to intravenous substance abusers. the determination of the Secretary- in such subsection through the dissemina- 24242 EXTENSIONS OF REMARKS September 16, 1987 tion of information throughout the geo­ Financial disclosure will help prevent the IN HONOR OF THE 40TH ANNI­ graphic area involved, including dissemina­ temptations involved in having access to na­ VERSARY OF THE SCHOOL OF tion in school systems and through means tional security secrets which could be ex­ VISUAL ARTS of mass communication. (d) FuNDING OF PROGRAM.-Of the amounts tremely valuable to our enemies. Disclosure appropriated pursuant to section 7, the Sec­ forms are filed under oath, and an intentional HON. BILL GREEN falsification or omission could subject the filer retary shall reserve 25 percent for the pur­ OF NEW YORK pose of carrying out this section. to criminal penalties. This would help discour­ SEC. 6. GENERAL PROVISIONS. age congressional employees from engaging IN THE HOUSE OF REPRESENTATIVES (a) REQUIREMENT WITH RESPECT TO IN­ in even the most casual agreement with for­ Wednesday, September 16, 1987 CREASE IN SERVICES.-The Secretary may not eign agents. At the very least, the forms could Mr. GREEN. Mr. Speaker, it is my pleasure make a grant under any of sections 3 disclose to the appropriate officials informa­ and honor to report that the School of Visual through 5 to an applicant unless the appli­ tion that could cause a reinvestigation of an Arts, located on East 23d Street in my district, cant agrees that the applicant will not individual. expend amounts received under the grant is celebrating its 40th anniversary this year, I believe financial disclosure statements are involved to supplant any funds otherwise and began its observance Monday in fine a basic way to keep track of those persons available to the applicant for the purpose fashion with an exhibition of poster art at the with security clearances. To be sure, most for which such grant is to be made to the Cooper-Hewitt Museum (also within the dis­ applicant. employees who are granted security clear­ trict), the Smithsonian lnstitute's National (b) REQUIREMENT OF APPLICATION.-The ances would not dream of compromising our Museum of Design. Secretary may not make a grant under any national security, but it often only takes one The Nation's largest degree-granting, inde­ of sections 3 through 5 to an applicant person to do a lot of damage. I believe a fi­ pendent art college with over 6,000 students, unless the applicant has submitted to the nancial disclosure statement would keep a Secretary an application for the grant in­ the School of Visual Arts pioneered, and check on those individuals who may be tempt­ volved. The application shall, with respect maintains today, a teaching philosophy of ed by the promise of big money or who are to carrying out the purpose for which the hiring only working professionals. With a facul­ being manipulated, possibly blackmailed, to grant is to be made, provide assurance of ty of 650, the school boasts an instructor-pupil compliance satisfactory to the Secretary divulge secrets. ratio of better than 10:1, and has numbered and shall otherwise be in such form, be The privilege of receiving a security clear­ among its teachers some of the most re­ made in such manner, and contain such in­ ance carries with it a responsibility to our nowned design artists of this century, such as formation and agreements as the Secretary country. Financial disclosures are presently re­ Milton Glaser, Marshall Arisman, Paul Davis, determines to be necessary to carry out such quired by law for Members of Congress and a purpose. and Bob Giraldi to name but a few. With the key staff member of each Member. Is it any SEC. 7. AUTHORIZATIONS OF APPROPRIATIONS. benefit of such caliber of instruction, it · is no less important to require an annual disclosure For the purpose of carrying out this Act, wonder that 87 percent of every graduating from those individuals who are exposed to our there are authorized to be appropriated class are working in their major fields within a country's most valuable secrets? $400,000,000 for fiscal year 1987 and such year. Some 2,200 full-time undergraduates, It is time for the Congress to take a first sums as may be necessary for each of the the most talented of whom are offered gener­ fiscal years 1988 through 1990. step in stopping the flow of sensitive informa­ ous scholarships, take courses in six major SEC. 8. DEFINITIONS. tion to our adversaries. I hope my colleagues subjects: art education, film, fine arts, media For purposes of this Act: will join me in support for this legislation. (1) The term "intravenous substance arts, photography and journalism. The mas­ abuse" includes substance abuse through ter's of fine arts degree is also offered, and subcutaneous injection and intramuscular AN INTERVIEW WITH COMMAN­ the school is admirably committed to continu­ injection. DANTE DANIEL ORTEGA ing education, with some 4,000 adults en­ <2> The term "Secretary" means the Sec­ rolled. retary of Health and Human Services. HON. GERALD 8.H. SOLOMON Perhaps most important, however, has been OF NEW YORK the SVA's contribution to art in the public domain, especially in the subways. While "un­ FINANCIAL DISCLOSURE FOR IN THE HOUSE OF REPRESENTATIVES CONGRESSIONAL STAFF WITH derground" in the most literal sense, this art SECURITY CLEARANCES Wednesday, September 16, 1987 could hardly have a more broad-based audi­ Mr. SOLOMON. Mr. Speaker, the Associat­ ence since the subways are ridden by millions HON. GEORGE C. WORTLEY ed Press tells us that the next issue of Play­ daily. The posters have moved beyond their OF NEW YORK boy magazine will publish an interview with original forms of simple institutional advertis­ ing to take on wider concepts, with the most IN THE HOUSE OF REPRESENTATIVES Commandante Daniel Ortega, who is quoted as saying he "would really like to be doing outstanding of the diverse array of the past Wednesday, September 16, 1987 what Che (Guevara) did" -in other words, four decades going on display this week. I Mr. WORTLEY, Mr. Speaker, over the last spreading Marxist revolution throughout the expect that the decades to come will feature few years, our country has faced a distressing Western Hemisphere. more in ovation and creativity from the cream number of espionage cases as well as the We've also been reading that Comman­ of the country's design talent, and under the continuing problem of leaks of national securi­ dante Ortega plans to visit his masters in guidance of Silas Rhodes, the founder and ty secrets. The debacle at the U.S. Embassy Moscow November 7, the very day that the current chairman of the board, and his son in Moscow is still another reminder that we Guatemala City peace plan is to take effect. David, the current president, the School of are not vigilant enough when it comes to our And now we read that you, Mr. Speaker, think Visual Arts will continue to flourish as one of Nation's security. this display of utter contempt for the West will, New York's most vital artistic forces. We expect other governmental institutions and I quote, "have the effect of producing to maintain strict oversight of their employees less dependence on Moscow and Havana." who hold security clearances. Why shouldn't Mr. Speaker, I'm sure you treat mules in BERLIN, PA, SESQUICENTENNIAL Congress keep track of its own employees Texas the same way we treat them in upstate with security clearances? It's time we in the New York. Sometimes we have to hit them in HON. JOHN P. MURTHA Congress set an example for a standard of the head with 2-by-4's a few times before they OF PENNSYLVANIA conduct and put our own house in order to get the message. I really don't know how IN THE HOUSE OF REPRESENTATIVES help prevent future breaches of security. To many times Communists have to tell us they that end, I am reintroducing legislation amend­ are Communists, dedicated to world revolu­ Wednesday, September 16, 1987 ing the 1978 Ethics in Government Act to re­ tion, before we believe them. Perhaps it will Mr. MURTHA. Mr. Speaker, I am very quire that all legislative branch employees be when the Sandinistas show up at your dis­ pleased to recognize the celebration of the with a security clearance of secret or higher trict office, which is a lot closer to Managua 150th anniversary of Berlin, PA. file a financial disclosure statement with the than it is to Albany. You might want to keep In recognizing such historical moments, we appropriate officials in the Congress. that in mind when you read the interview. remember our past as a way to learn about September 16, 1987 EXTENSIONS OF REMARKS 24243 our present and future. We have underway in an unaccustomed experience to attempt to rights, and to enhance living standards Somerset County and eight other counties in beard the lion in its den. ought to be a condition precedent to free western Pennsylvania, a major historical tour­ I'll waste no time in putting our position entry of goods and services into the U.S. ism project that recognizes the contributions up front. market. Specifically, we believe signatory We detect not a little chicanery and hy­ nations of the General Agreement on Tar­ of that area to America's industrial growth. pocrisy in discussing the current competi­ iffs and Trade should impose trade The people of Berlin made a major contribu­ tiveness craze in terms of economic nation­ sanctions on the products of nations whose tion to that growth. alism, when, in fact, the primary actors and businesses and corporations violate funda­ In this ceremony we remember the people agents in the game are multinational corpo­ mental economic, political and social rights. of those 150 years who contributed to our rations . Certainly, U.S.-based MNCs It is ironic that some 73 nations have region and to America. These are our ances­ claim no allegiance to country or govern­ agreed to trade sanctions on countries that tors that mined the coal that fueled our ment. Rather, they fly a flag of convenience violate agreements to protect wild animal Nation, started the farms that made us the in bottom-line quest for market penetration life, but none has yet been willing to strike a breadbasket of the world, labored in the mills or domination, resource control, cost-mini­ similar bargain to protect human beings. mization/profit-maximization, or all of the Without those measures, the global econo­ and factories that made us an industrial above. · my will continue to be exploited rather than power, and started the traditions of family, loy­ Here's a viewpoint that seldom-almost developed. And the new MNC global sover­ alty, and honor that are the cement of Ameri­ never-gets presented to officialdom or the eignty linked and allied with authoritarian ca's character. public at-large. When U.S. based MNCs buy regimes in NICs and LDCs, will continue to It is always amazing to me to think back into; co-produce with; transfer capital, tech­ undermine effective demand-not to men­ and realize that over the last 150 years, the nology and management to; invest in or oth­ tion democracy-in our domestic economy, people of a community like Berlin have seen erwise make direct foreign investment for while failing to build and expand new con­ America withstand a Civil War, send its young production offshore (goods or services); but sumer-based markets in the exploited ones. men to fight in two World Wars and other con­ for sale back in the home market, then in It is a "zero-sum" game, the rules of terms of economic nationalism, America's which can and must be changed. flicts, suffer through depression, recession, "competitiveness" is enormously deprived, We notice that much of this current com­ and natural disaster, and see America and the while that of ·our "competitors" is greatly petitiveness craze is based on a cost-cutting region challenged from a hundred different di­ enhanced. binge. Academics and management officials rections. But in seeing what the ancestors of As long as this uninhibited free flow of alike will surely pardon us if we point out Berlin have overcome and the challenges they largely private capital and technology per­ that it is a basic economic principle that have met, it is a reminder to us all that deep sists for purely private reasons, then U.S. cost-cutting in and of itself creates no eco­ in the American fabric rests the characteristics "competitiveness will remain anemic, for nomic growth nor new wealth. Cost-cutting, to see us through whatever present and future the obvious reason that U.S.-based MNCs too has its point of diminishing return and are also foreign competitors. optimal effect. In particular, when cost-cut­ crises we face. Their corporate balance sheet and income ting is applied almost universally to labor My congratulations to the Berlin community statement compete against our national and to substituting other factors for labor, on its sesquicentennial, and continued good income accounts and balance of payments. maximum efficiency equations and goals wishes for the people of the community. Those MNC ledgers also compete against may be achieved at the expense of aggre­ the bottom-line standard of living of most gate effective demand and a market that working and unemployed citizens here in can buy that which it produces. WINPISINGER CALLS FOR FAIR the home economy. In other words, how many cars, TV sets TRADE With the trade deficit currently standing and personal computers can Koreans, Indo­ at somewhere around $170 billion and prob­ nesians and Mexicans buy for personal con­ HON. BRUCE F. VENTO ably another third of that amount escaping sumption on wages of 50 cents an hour or Customs and Census Bureau accounting­ less and some food rations? And assuming OF MINNESOTA which red ink continues to hemorrhage and this globalization of production process con­ IN THE HOUSE OF REPRESENTATIVES coagulate on the Special Trade Representa­ tinues over another decade-as most MNC Wednesday, September 16, 1987 tive's doorstep-then the "competitiveness" moguls and their free-trader allies in acade­ craze seems likely to become chronic and mia and government vow it will-how long Mr. VENTO. Mr. Speaker, the national maybe even deteriorate into some severe before low-wage deindustrialized U.S. work­ debate on how to effectively restore fair trade form of economic psychosis. . ern Hemisphere are not apt to wait 50 years um, more than 20 leaders from business, Within the parameters of orderly and fair more for a free-trade system to improve labor, academia, and government met to dis­ trade-fair meaning that labor as a factor of their lot. cuss international trade issues and how they production hM at least equal priority with For those who protect MNCs and interna­ affect our Nation's economic future. capital and management-we believe corpo­ tional capital by raising the twin spectres of One of the more provocative and throught­ rate sovereignty and behavior must be li­ protectionism and Smoot-Hawley tariffs, we ful addresses to the symposium was delivered censed in the national interest in terms of suggest they dig a little deeper into modern by William W. Winpisinger, president of the national needs, priorities and values. U.S. economic history. The causes of economic International trade policy ought to be com­ protectionism and Smoot-Hawley legislation International Association of Machinists and plementary, not contradictory, to our do­ were directly linked to a fanatical free­ Aerospace Workers. Mr. Winpisinger's call for mestic policies and priorities. market dogma that espoused the primacy of "a level playing field" in international trade is Our major trade competitors play the capital and management, supply-side eco­ compelling and persuasive. I ask unanimous game that way, and they're enjoying trade nomics, extensive substitution of technology consent that Mr. Winpisinger's remarks be surpluses, not trade deficits. for human labor, and a massive almost uni­ printed in the RECORD. On the other hand, Newly Industrialized versal cost-cutting binge against wages. The remarks follow: Countries (NICs) and Lesser Developed More than one economic historian has Countries in almost all cases enjoy long since concluded that long term and NOTES FOR REMARKS BY WILLIAM W. an authoritarian's "comparative advantage" persistent destruction of the labor economy, WINPISINGER of substandard civil, human, political, labor and, hence, the undercutting of effective since more systems analysis and less blind dogma perative. It is a political and economic im­ guiding our trade apparatus and trade 1960, while GNP per capita has barely in­ policies. creased by half. The increase in the world's perative. And that dependency on foreign And that systems analysis must factor-in economic product over the 1960 to 1983 credit inextricably links development with human values as well as the amoral equa­ period amounted to a net $8.6 trillion. The disarmament. tions of bionic economists and their econo­ growth in military expenditures during the In an interdependent world, neither the metric models. same period was $14 trillion. developed nor the Newly Industrialized nor In calling for this analysis and examina­ This means that military expenditures the Less Developed nor the Undeveloped tion, we can look to at least one of the Big have outpaced the economic expansion on countries can escape the consequences of Three bionic economists to support us. Data which rapidly growing population depends global militarism and its economic costs. Resources International's own Otto for improved living conditions. Excessive militarism is responsible for Eckstein called for just such a thoroughgo­ The gap between the pace of the arms much of U.S. "competitive" problems. The ing analysis in a 1984 report on U.S. manu­ build-up and the growth in GNP per capita folks who are beating our socks off in the facturing industries. has become even more pronounced in the trade sweepstakes don't have to devote 55 Said Mr. Ekstein in that report, "There last three years. percent of their public revenues to building are so few exceptions to the decline of the As Ms. Sivard tells us, "Behind the num­ and sustaining a gold plated Rube Goldberg international positions of the U.S. manufac­ bers is the pain of millions of lives lost to military machine. turing industries that one must seek neglect as well as to violence." And that too has to be considered in any ... general causes that act on the entire Last year, under the auspices of the intelligent discussion about the world econo­ American economy." There's a call for trade United Nations, a joint declaration by a my and the current competitiveness craze. systems analysis if ever we've heard one. panel of 15 internationally renowned econo­ Thank you. Perhaps none in academia has made the mists, which included Nobel Prize Laureate point quite as forcefully or succinctly as Lawrence Klein of . the U.S., Walter Scheel CITATIONS Bruce Scott and George C. Lodge in their of the Federal Republic of Germany and 1. Briggs, Vernon M., Jr., ed.; "The Inter­ boo, "U.S. Competitiveness in the World Inga Thorsson of Sweden, concluded that in nationalization of the U.S. Economy: Its Economy." "Declining U.S. competitiveness a world of increasing interdependence, Labor Market Policy Implications:" Confer­ is evident in a shift from decades of trade global politics is being reshaped in a way ence Proceedings of The National Council surpluses to substantial deficits, eroding that defines security as much in economic on Employment Policy. Washington, DC, market share in almost all sectors, and de­ as in military terms. January 1986. clining profitability since the late 1960s. "The time has come to take into account 2. Data Resources, Inc.; "Report on U.S. "In addition, real, after-tax earnings of the existence of an array of non-military American workers have been declining since threats to security in such forms as sharply Manufacturing Industries," Cambridge, they peaked in 1972-73." dimished prospects for economic growth Mass., 1984. Scott and Lodge continue to make our and social development, large scale unem­ 3. Lodge, George C. and Bruce R. Scott, point, when they declare, "A clear concept ployment, resource scarcity, threats to food "U.S. Competitiveness in the World Econo­ of national competitiveness is essential to security and severe environmental degrada­ my." Harvard Business School Press. Cam­ diagnosing the problem. U.S. competitive­ tion," the panel stated. bridge, 1984. ness means the ability to employ U.S. re­ "Scarce resources are better put to the 4. Sevard, Ruth Leger; "World Military sources, both human resources and capital formidable task of improving living stand­ and Social Expenditures 1986." World Prior­ resources, so that Americans earn increasing ards than to military build-up." ities, Washington, DC, 1986. returns while in open competition with Therefore, " ... there is sufficient civilian 5. United Nations. "Disarmament and De­ other countries." need in the world which, if turned into ef­ velopment." Joint Declaration by the panel Finally, Scott and Lodge call for our anal­ fective demand, is a viable instrument of of eminent personalities in the field of dis­ ysis and examination of the relationships economic stimulation in recessionary condi­ armament and development. New York. and linkages of our domestic economy with tions, and a feasible stimulator of research 1986. the emerging global one: "Unless the United and development," according to those distin­ States re-examines and modifies its basic guished observers. economic strategy, it cannot expect to fi­ Still, too many policy makers and policy nance its commitments to leading the West­ advisors here in the U.S. continue to think ern Alliance, increasing the domestic stand­ and act as if only the military sector can ard of living, and improving the distribution promote economic development. Tell that to of income." the Vietnamese. Tell it to Central Ameri­ There you have it. We trust it isn't too dis­ cans. Tell it to Grenadians. Tell it to those turbing to Princetonians that we've cited Middle Eastern and South African and September 16, 1987 EXTENSIONS OF REMARKS 24245 TAX TREATMENT OF PICK AND said, "I would like to think that this small gulp [From the New York Times, Sept. 13, 19871 ROLL GRAIN of hope is a prelude to a quenching of the FREE THE AVIATION BILLIONS global thirst for peace and security." Even Stung by charges that she has misman­ HON. HAL DAUB though I long for this gulp of hope, in fact aged the nation's air transportation system, OF NEBRASKA many gulps of hope, there are reasons why Secretary of Transportation Elizabeth Dole . blames Congress. It is responsible for the IN THE HOUSE OF REPRESENTATIVES my thirst will not yet be satisfied. I remain concerned about the human rights unspent $5.6 billion in the Aviation Trust Wednesday, September 16, 1987 situation in the Soviet Union, in particular, the Fund, she says, and thus for increased con­ gestion and delay. Mr. DAUB. Mr. Speaker, yesterday I intro­ plight of Soviet Jews. Although the number of Mrs. Dole is partly right. But so are her duced a bill to more fairly deal with the Jews emigrating from the Soviet Union is in­ critics. The nation's interest lies less in ref­ income earned when a farmer does the "PIK creasing and anti-Semitism is not as evident in ereeing the dispute than in clarifying how and roll." No, it's not a new basketball play current official policy, the issue of Jewish emi­ the trust fund is to be used and using it. done in the corn field, but when it comes to gration and national rights has yet to be fully The best way would be to move the fund en­ describing the IRS's ruling on the topic I can't resolved. "Glasnost" will have positive effects tirely out of the Federal budget. help but cry foul. Revenue ruling 87-17 re­ on Soviet Jewry if it is fully implemented, but About $3 billion a year collected through quires a farmer who uses PIK certificates to international pressure must continue so this an 8 percent tax on airline tickets and other aviation consumption feeds the trust fund, redeem Commodity Credit Corporation [CCC] goal can be realized. which is sequestered by law for use in the loan grain, to treat the transaction as though The Soviet Union is sensitive to external nation's aviation system. Most of the money the certificates had been sold to the CCC. In criticism of its domestic practices. Mr. Gorba­ goes for capital purposes-equipment and short, the IRS considers this transaction to be chev is very aware of Western concern about facilities; airport construction and improve­ income producing, requiring the farmer to pay Soviet Jewry. He understands that compliance ment; research and development. But the income tax on the amount during the year of with the provisions of the Helsinki accords fund also pays for nearly half the Federal the loan repayment. Clearly, this is not income pertaining to emigration and family reunifica­ Aviation Administration's operating budget. to the farmer, but rather is the repayment of a tion are important to the image of the Soviet Despite the restrictions, however, Con­ gress still must appropriate money from the loan. Taxable gain should not be recognized Union he seeks to export to the free world. It fund each year, just as it does the Govern­ by the farmer until the underlying collateral, is, therefore, incumbent upon us to make sure ment's other funds, and the appropriation the grain, is sold and not when a loan is human rights remains a priority in our negotia­ counts in the general deficit accounting. repaid. tions, and to continually remind Soviet authori­ Mrs. Dole says Congress has appropriated The ruling is particularly unfair because it ties of their obligations to their citizenry. less than the Administration has requested was not announced until March 1987, after Before we can trust the word of any govern­ and less than the law authorizes for equip­ many farmers had already relied on the old ment, we must look to those who are gov­ ment and facilities. This has triggered a rules and completed their Pl K and roll trans­ erned. If the promise of liberty and justice has penalty provision designed to assure that the fund is used mostly for capital expenses action. The result is that many 1986 tax re­ been denied them, how then will the promise as opposed to operations. For every dollar turns should include income from farmers' of a reduction in arms be afforded to us. that capital spending falls below authorized 1985 and 1986 crop. The 1985 crop would levels, the F.A.A. loses two trust fund dol­ have been deferred until 1986 under section lars for operations and must draw on the 77 of the Internal Revenue Code. If a farmer TAKE THE AVIATION TRUST general Treasury. did a PIK and roll in 1986, under the ruling the FUND OFF BUDGET Congressional spokesmen, Democratic and repayment of the loan would also be included Republican, reply that Mrs. Dole's charge of in their 1986 return, resulting in a doubling-up underfunding ignores the realities of the ap­ HON. JAMES J. HOWARD propriations process. T.he President can get of income in 1 year. OF NEW JERSEY away with offering a budget that gives noth­ My bill would place the farmer back in the ing for some functions and fully funds position he was in prior to the IRS ruling, with IN THE HOUSE OF REPRESENTATIVES others, like the F.A.A. But politically, Con­ one addition; that is, the farmer could elect to Wednesday, September 16, 1987 gress could not pass a budget that didn't have the tax apply 9 months after the date give something to each function, even if the loan was originally received. This election Mr. HOWARD. Mr. Speaker, the Committee that means funds for all fall short. is based on the similar rule which requires a on Public Works and Transportation will seek It is absurd that an issue of such impor­ CCC loan to be included in income after 9 a waiver from the Rules Committee on Tues­ tance to so many should come down to a day to allow an amendment to be offered on debate over the arcana of Federal budget­ months when the loan lapses. Under my bill, ing. Setting up a trust fund but leaving it the farmer can also elect to take the gain into the floor to remove the airport and airway trust fund from the congressional budget proc­ subject to annual appropriation invites con­ income when the loan is repaid, as in the IRS fusion, abuse and backbiting. The Aviation ruling, or when the commodity used to colla­ ess. Trust Fund ought to be taken entirely out teralize the loan from the CCC is finally sold. The increasing frustration of the American of the budget, perhaps put in a new quasi­ Most importantly, without the passage of this public with flight delays as well as the growing governmental agency. That would finally let bill many farmers will be faced with the unex­ concern with safety problems make this move the nation's travelers buy the air transpor­ imperative. The unobligated balance of almost tation system they thought they had been pected and unfair result that they will have to paying for. recognize income from two crop harvests in a $6 billion should be spent on airport expan­ single year. sion and safety projects and the moderniza­ tion of the antiquated air traffic control system. MEDICARE HOSPITAL PAYMENT GLASNOST The aviation trust fund is fully funded by POLICIES dedicated taxes paid by users and benefiters HON. GUS YATRON of the aviation system. The money cannot be HON. CARROLL HUBBARD, JR. OF PENNSYLVANIA spent for any other purpose and it is decep­ OF KENTUCKY IN THE HOUSE OF REPRESENTATIVES tive bookkeeping to attempt to use each IN THE HOUSE OF REPRESENTATIVES year's unspent surplus for deficit reduction Wednesday, September 16, 1987 purposes. Wednesday, September 16, 1987 Mr. YATRON. Mr. Speaker, foday the The increasing support for increased avia­ Mr. HUBBARD. Mr. Speaker, I have recently United States and the Soviet Union signed a tion spending has been demonstrated in received a July 27 letter from my friend and pact in an attempt to reduce the risk of war. newspaper editorials throughout the country. constituent Michael L. Graue, administrator of Certainly, all of us who value peace and In the latest, which I submit for the RECORD, HCA Logan Memorial Hospital in Russellville, human life cannot help but be encouraged by the New York Times on September 13 en­ KY, which I would like to share with my col­ initiatives such as these. Soviet Foreign Minis­ dorsed removing the aviation trust fund from leagues. ter Eduard Shevardnadze quoted in the Sep­ the budget. Mike Graue has contacted me about his tember 16 edition of the Washington Post The article follo~s: views with regard to the budget reconciliation 24246 EXTENSIONS OF REMARKS September 16, 1987 package as it relates to Medicare. His views to limit health care spending growth, al­ questions. For those of you who need a little have merit and deserve the attention of my ready have limited capital expenditures to extra assistance in mastering these important colleagues. necessary projects. constitutional questions, I will provide the an­ Also realizing PPS potential depends on I hope my colleagues will take a few min­ whether the system can offer assurance swers to the quiz at some future date. utes to read and consider his excellent and that payment will be adequate and equita­ CONSTITUTION TRIVIA Quiz thoughtful comments. The letter to me from ble. Continuation of a 21 percent differen­ : about the special dangers that civilians of to take legal action against civilians sup­ 1. republican both El Salvador and Nicaragua must current­ porting its enemies, they do not permit 2. democratic trumped-up charges, kangaroo courts, phys­ 3. federal ly face. I think it further dramatizes the need ical abuse, or threats against family mem­ 4. fair to offer those who have fled these a tempo­ bers. 5. The Committee of Style and Arrange­ rary helping hand. Mr. Speaker, I highly rec­ Many would argue that it is in the nature ment put the Constitution in its final liter­ ommend Ms. Burkhalter's thoughtful article to of insurgency and counterinsurgency that ary form. The delegate most responsible for my colleagues. warring armies compete for civilian support that work: CIVILIANS WHO CANNOT REMAIN NEUTRAL in conflict areas and often punish those be­ 1. Gouverneur Morris lieved to have aided the opposing side. 2. William Jackson Yet this does not mean that it is futile to 3. Rufus King Insurgency and counterinsurgency have a try to protect human rights in the context 4. William Samuel Johnson particularly crude dimension in Central of such wars. The parties to these conflicts 6. George Mason of Virginia refused to America, where there have been a number also seek international legitimacy and sup­ sign the Constitution because: of attacks on civilians in recent months. port. By making it plain that practices 1. the states were weakened In El Salvador and Nicaragua, guerrillas which victimize civilians are not tolerable, 2. he hated Alexander Hamilton and government forces are forcing civilians the international community can force 3. there was no Bill of Rights to aid them or are taking reprisals against changes. 4. all of the above civilians believed to be helping the other The armed forces were required to curb 7. The only "Founding Fathers" to sign side. In both countries, it is difficult for ci­ the death squads and aerial bombardments the Declaration of Independence, the Arti­ vilians to remain neutral, as rebel and gov­ of civilians; the Nicaraguan armed forces cles of Confederation, and the Constitution ernment forces attempt to deprive each were required to curb abuses against the were Robert Morris and: other of civilian support. Miskito Indians; the guerrillas in El Salva- 24248 EXTENSIONS OF REMARKS September 16, 1987 dor and the contras in Nicaragua are being merly outpaced the world in producing qual­ doned and dissolved. The Sandinistas, that required to curb their use of land mines ity goods and reliable service, recently the is to say, may not be serious about restoring that kill and maim civilians. All of these short-term objectives came to be make civil and political rights and moving toward curbs were forced by international public money, get rich and get out. a multi-party system and open government. opinion. But more significant than all the hanky­ It is for precisely this reason that Presi­ That same pressure should be directed panky that's been going on is the response dent Reagan has so far insisted that the against both sides in El Salvador and Nica­ of such men as Willard Butcher. His compa­ contras not be abandoned by the United ragua who are abusing civilians they consid­ ny now has a Corporate Code of Conduct­ States until the Sandinistas live up to their er supporters of their enemies. spelling out the value standards which his part of the accord and liberalize that na­ employees are expected to live up to. tion's politics. Commandant Daniel Ortega, Motivation seminars which used to stress contrariwise, has lately been insisting that BEHAVE OR BE DAMNED convince the customer, sell the sizzle, close the peace accord, which was signed by sever­ the deal-are now espousing ethical behav­ al Central American nations last week, HON. GEORGE C. WORTLEY ior and ethical principles, "behave or be would not be binding unless the United damned." OF NEW YORK States first ended its support of the contras. Corporate leadership is looking beyond There will undoubtedly be pressure from IN THE HOUSE OF REPRESENTATIVES quarterly profits to long-term societal con­ many in the United States, including many Wednesday, September 16, 1987 cerns: Reg Jones at G.E., Dan Burke of in Congress, for President Reagan to cut the ABC, Bill Pollard at Servicemaster, Irving contras off. The President should resist. Mr. WORTLEY. Mr. Speaker, I would like to Shapiro at DuPont, David Rockefeller and The fact of the matter is, Mr. Ortega and call the attention of my colleagues to a radio Jim Burke and John Shad. And Harvard's the rest of the Sandinista directorate have address about corporate morality given by the business school has now made the study of given little reason for the world to believe renowned Paul Harvey on August 22, 1987, ethics an integral part of the curriculum. they would voluntarily move in the direc­ for the ABC radio network. I submit a tran­ From recent painful headlines has come a tion of freedom and democracy-and much script of the address for the RECORD. new commitment to "ethical excellence." reason to doubt it. In 1979, it will be remem­ We've discovered that if only in our own en­ bered, the Sandinistas were also called upon Paul Harvey is right on target with his timely lightened self-interest, being better and report, and I hope his message is heeded. to compromise with their political oppo­ doing better is better. nents, mostly because of heavy political The free market system serves us well, but it pressure. The agreement that was reached is not to be confused with the free-for-all included guarantees for freedom for all po­ market system envisioned by the inside trad­ UNITED STATES SHOULD NOT litical parties, opposition groups and the ers and racketeers of current infamy. ABANDON YET ANOTHER ALLY media, as well as a system for protecting pri­ As a member of the House Committee on vate property against arbitrary confiscation. Banking, I am acutely aware of the role of HON. GERALD B.H. SOLOMON While agreeing to all of this in the ab­ moral abuses in the failure of financial institu­ OF NEW YORK stract, however, the Sandinistas were busy tions. Recent testimony before our committee IN THE HOUSE OF REPRESENTATIVES undermining each principle in practice. All this happened, it should be recalled, when by the Federal Deposit Insurance Corporation Wednesday, September 16, 1987 the Carter administration still looked favor­ revealed that serious insider abuse, fraud, Mr. SOLOMON. Mr. Speaker, for some ably on the revolution-and was even pre­ and/ or apparent criminal activity contributed pared to send $75 million in aid to help out · significantly to about one-third of the bank fail­ reason best explained by psychoanalysts, the Sandinistas. Since then, Nicaragua has ures in recent years. Such offenses are an as­ some individuals, including, regretably, Mem­ gradually been converted into a quasi-totali­ sault on our moral culture as well as on inno­ bers of this House, have chloroformed them­ tarian state. cent taxpayers, investors, and consumers. selves into thinking negotiations, with the Does anyone really believe that Mr. [Paul Harvey News, ABC Radio Network, Marxist masters of Nicaragua will guarantee Ortega would even be talking about freedom Sept. 22, 19871 peace for all time. These people, some of and democracy if the contras, backed by the them well-meaning, seem to believe that if United States, had not all along been pres­ BEHAVE OR BE DAMNED one wishes for peace hard enough, it will ma­ suring him in the field? Does anyone seri­ There is a new awareness in the corporate ously believe that if left alone now the San­ board room that industry without morality terialize, that if we can get people who hate dinistas would quit their Marxist program has lost its rudder. us to sign a treaty, they then will love us. for Nicaragua? Indeed, does anyone believe American leaders in politics, industry and One of the best newspapers in the North­ that the Sandinistas are any less Marxist or finance have been cutting corners, bending east, the Times-Union of Albany recently ex­ any less beholden to Cuba and the Soviet rules, cheating. posed that dangerous mentality, warning us to Union today than they were last year? Recently the Chairman of Chase Manhat­ keep up pressures on the Sandinistas until When Mr. Ortega was finally pressured tan addressed a graduating class at Tulane they prove their interest in peace. into signing this latest peace accord he im­ with what he labeled up front as a If they do, it will be a first. There is not one mediately flew to Havana to confer with "sermon." Fidel Castro. Strangely, Mr. Castro gave the Mr. Willard Butcher was appalled-and he case in history, not one, in which a peace Sandinista leader the green light-an even thought those students should be-at insid­ agreement with Communists has been worth more curious development than the Sandi­ er trading scandals which have converted the paper it was written on. No agreement nistas agreeing to an open government. some Phi Beta Kappa graduates of the with the Communists has ever resulted to our But, as Lawrence Harrison, the former di­ finest schools into convicted felons. benefit. rector of the U.S. Agency for International And even in the pristine halls of acade­ Not everyone is fooled. The editors of the Development's mission to Nicaragua has mia, embarrassing revelations of rule-break­ Times-Union, at least, can see through the written, "That Mr. Castro has now endorsed ing in amateur athletics. wishful thinking that threatens to reach epi­ the Central American peace agreement is One college president recently remarked, particularly telling: Does anyone believe wryly, "We're trying to build a university demic proportions these days: that he really wants democratization in that our football team can be proud of." STICKING WITH THE CONTRAS Nicaragua?" Scandals are not new to our nation. Ethi­ Irrespective of the wisdom of Costa Rican Before the United States can afford to cal abuses have been with us since the President Arias' peace plan for Central halt aid to the contras, the Sandinistas Grant administration and the Teapot Dome America, the United States is more or less must take specific steps. These include re­ scandals in government-through the Black stuck with it. The President himself had ducing their military forces, ousting Cuban Sox scandal of 1919 in sports-to the Salad pretty much committed himself to a negoti­ and Soviet military advisors and guarantee­ Oil and Equity Funding scams in business. ated settlement when he, in effect, author­ ing free and open elections that would pro­ But Mr. Butcher says the recent differ­ ized Jim Wright to draw up a plan in the ad­ vide the contras the opportunity to take ence is that ethical abusers came to be ministration's name. As soon as Mr. Arias' part in a democratically elected govern­ treated like celebrities. peace train left the station, however, Jim ment. Recently the New York Times said the Wright jumped aboard and so-at least with It is certain there will be no move toward best way to ensure the success of your next one leg-did President Reagan. democracy in Nicaragua without some pres­ dinner party is to invite Ivan Boesky, The problem with the Arias plan, howev­ sure being applied. The United States Dennis Levine or the Mayflower Madam. er, is that it might too easily permit the cannot abandon the contras now because The attitude seems to be, "If you're indict­ Sandinistas to violate its main principles the contras are the only source of pressure ed-you're invited." Where Americans for- while the anti-communist forces are aban- that could force Nicaragua to reform. A September 16, 1987 EXTENSIONS OF REMARKS 24249 piece of paper by itself, no matter how have represented our area in Congress, I maphosa, general manager of the National many signatories, will not do the job. have learned a great deal about agriculture Union of Black Miners, knows it won't stop and the farming families of our region. Among there. So does Prime Minister Pieter Botha. "You organize the workers and once IN HONOR OF THE ANNUAL these farms recognized are lands that have you've organized them they take their lives THIRD A VENUE FESTIVAL been in the family since the 18th century, and into their own d throughout tlw States, ordinary workers have been a power­ country. of Somerset; Donald Kalp of Acme; and John ful force for justice and decency. and Scott Mcilvaine of Greensburg. In th<' 1880s. Amt'rka"s political leaders Three hundred fifty thousand black called tlw strikt'rs '"comnmnists:· In Uw One of the pleasures of representing a di­ miners have been on strike in South Africa. 1980s. Polish authoriti<'s callt'd them "'<':tP­ verse area in Congress is learning about its Their immediate concerns were for better ltallsts."" In nl'itlwr ca.'\<' could Uw label hidt• people and its distinctions. Over the years I wages and working conditions. But Cyril Ra- the workt'rs" dt'Sit"t' for fr<'<'dom. 24250 EXTENSIONS OF REMARKS September 16, 1987 Recently, 40,000 South Korean workers BOLIVIA'S MONETARY REFORM structure, UNDP helped create a new Minis­ occupied Hyundai's shipyards and engine LEADS TO SUPPLY-SIDE REVO­ try of Revenue. manufacturing plants. In El Salvador, two LUTION Ramiro Cabezas, the new minister of reve­ dozen unions are on strike. In both cases the nue, says: "The previous system was eroded, workers are demanding legal recognition. In corruption was generalized, the tax base de­ both cases they also demand democracy. HON. GUS YATRON stroyed. We completely discarded the old South African miners, Hyundai auto OF PENNSYLVANIA system of more than 400 codes and replaced workers, Gdansk shipyard employees, Salva­ IN THE HOUSE OF REPRESENTATIVES it with seven new codes." A basic criterion was to design a system doran teachers, all want the same thing: a Wednesday, September 16, 1987 recognition of their value as people. Consid­ that was as easy as possible ito enforce. For Mr. YATRON. Mr. Speaker, the Bolivian example, businesses pay taxes on "pre­ eration. Respect. Liberty. sumed" income, calculated as the difference Unions are rarely viewed with favor by Government, which only 2 years ago had an inflation rate of 20,000 percent, has made ex­ between assets and liabilities, rather than those who run our factories, our television on profits. "It's a blind tax," admits Mr. Ca­ stations, our newspapers, our governments. emplary progress in bringing inflation under bezas, "but assets are easier to identify than For a union is, by definition, an independent control. The annual inflation rate is now 12.5 profits." source of power, rooted deeply in the collec­ percent. Manuel Vivado, president of an agricultur­ tive ability of those who produce our One major project assisting that govern­ al consulting firm, doesn't believe the tax is wealth. It is a subversive force in the best ment in stabilizing the fiscal situation was es­ fair. "Farmers and ranchers need land, sense of the word. Thus we grow up not tablished by the United Nations Development cattle, machinery and often make small knowing that May Day began in the United Program [UNDP]. UNDP is reforming and im­ profits," he says. "Banks, on the other States. We come to view unions as a neces­ plementing a new tax structure and has con­ hand, can make huge profits with relatively fewer assets. I'm examining these differ­ sary evil. tributed to the creation of a new Ministry of But today's headlines belie this distorted ences for the cattlemen's association and we picture. Around the world, at great personal Revenue. This is a typical effort by UNDP, will present our case to the Ministry." Yet risk, millions of people are saying to the where important basic infrastructural work is even Mr. Vivado concedes, "In general, we most violent, repressive regimes on earth: being implemented to assist an impoverished support the new tax system but we believe "Enough! We will toil no longer until we nation. some inequities need adjustment. I'm opti­ have rights." Mr. Speaker, I would like to commend to mistic. It's a give-and-take process. The So, to those who mine the earth and build the attention of our colleagues an article pub­ whole country is moving toward a more ra­ our cars and ships, and teach our children, a lished in the Wall Street Journal that details tional system." The centerpiece of the new code is a 10% toast. To liberty and justice, and solidarity. those efforts and successful results. The arti­ value-added tax on all sales of goods cle is entitled "Bolivia's Monetary Reform and services. VATs have a terrible track Leads to Supply-Side Revolution," and was record in Latin countries. Argentina's 18% CONSTITUTION SACRED published in the Journal on July 24, 1987. VAT, for example, is so widely violated that The article follows: shopkeepers invariably quote two prices: [From The Wall Street Journal, July 24, one with a receipt, in which the VAT is in­ HON. HAL DAUB 1987) cluded, and one without Wednesday, September 16, 1987 permitting VAT taxpayers to deduct 10% of LA PAZ, BOLIVIA.-ln 1985. Bolivia's the value of their purchases from their per­ Mr. DAUB. Mr. Speaker, I include the follow­ 20,000% annual inflation rate tended to sonal-income taxes. At the same time, the ing tribute to the Constitution for the RECORD. over-shadow all other economic statistics. top marginal rate for personal-income tax It is a prize-winning piece written by Roy So it was no surpirse when the newly elect­ has been reduced from 35% to a flat rate of Palmquist from Omaha, NE. ed democratic government of President 10%. In other words, it's conceivable that Victor Paz Estenssoro, faced with economic many Bolivians will pay only the 10% VAT CONSTITUTION SACRED chaos, concentrated its efforts first on mon­ tax and no personal-income taxes! "We are The following is my tribute on prayer for etary control-or, rather, decontrol. The not interested in taxing income," says Mr. the U.S. Constitution. peso was devalued 93% and exchange rate Cabezas, "but in forcing the buyers and sell­ Almighty God, from this document of hu­ controls were removed. The market now de­ ers to issue the invoice in order to have a manity we inherit our birthright to liberty. termines the value of the new currency, better control on the value-added tax." Inscribed in the blood of those who died for which was renamed the Boliviano on Jan. 1, "One of the most important characteris­ such liberty. Almighty God, grant us always 1987. The free-floating Boliviano has been tics of the new system," notes Mr. Cabezas, the wisdom to safeguard it. The Constitu­ trading at two to one to the dollar ever "is that private banks have been contracted since. The government also stopped spend­ as collection agents. Bolivia's experience has tion is the culmination of the Magna Carta, ing money it didn't have. been that when government revenue offi­ the Declaration of Independence and the These short-term measures have had a cials and taxpayers were in direct contact Bill of Rights . The Constitution is sacred. A spiritual cre­ year. and the 20,000% rate of inflation now To implement this unique system, the ation conceived by God-endowed men who is holding steady at a 12.5% annual rate. UNDP team is developing a computerized were deliberate and far sighted, who com­ However, lost in the fuss over inflation software system that will enable the banks bined balance, flexibility and stability to was a related, fiscal statistic: During the to accurately and efficiently process pay­ make it a useful device. It endures because period of super-high inflation, the tax re­ ments and then turn the records on tape it embodies Christianity. source base, traditionally a low 7% to 11 % of over to the Ministry. For the first time in its The Constitution is the vehicle which GDP, dropped to less than 1%. Thus, along history, the government will have a system America has utilized to become the greatest with an anti-inflationary program, the new of record keeping that will enable it to nation in the world; the compass which has Bolivian administration had to adjust its quickly identify those who haven't paid guided us through stress and storm; fiscal accounting. The old tax law was pro­ their correct taxes. Moreover, says Omar through peace and progress. By experience, gressive, and had many different codes. "It C.M. Spinelli, director of the UNDP team, it is the only way to liberty. Almight God, I was not only confusing, it was easy to get identification by computer further reduces pray, keep it that way.-Roy A. Palmquist. around, Many of us, including myself, paid the possibility of corruption. little or no taxes," one businessman told me. The customs tax also was rewritten. The The government had to move fast. In less old system yielded only an estimated 4% to than 10 months, it developed and passed a 5% of the estimated value of imports. The new tax law. It also asked the United Na­ rates varied, but typically were quite high, tions Development Program to topping off at 80% for luxury items. They help reform and implement the new tax also encouraged wholesale smuggling. Also, structure. In addition to revamping the tax legitimate businessmen were forced to give September 16, 1987 EXTENSIONS OF REMARKS 24251 up their sale of imported goods and switch Court of Massachusetts in honor of CPA's at Senate to Jere St. Angelo, president, and to locally made products. A small-business this point: Theodore J. Flynn. executive director, of man I knew in the 1960s had a thriving busi­ Massachusetts Society of Certified Public ness selling imported kitchen and bathroom THE COMMONWEALTH OF MASSACHUSETTS-A Accountants, Inc. fixtures-sinks and tubs. Now his shop is PROCLAMATION filled with small locally produced items Whereas the Massachusetts Society of ranging from cosmetics to hair lotion. Why? Certified Public Accountants, Inc. joins The IN HONOR OF THOMAS J. "I couldn't pay the import tax and still American Institute of Certified Public Ac­ D'ALESANDRO, JR. make a profit," he told me. countants in celebrating the lOOth birthday The new tax is a flat 20% across-the-board of the public accounting profession in the levy. It is designed to encourage legal im­ United States; and ports. reduce the incentive to smuggle and Whereas the Massachusetts Society of HON. BARBARA BOXER Certified Public Accountants. Inc. whose realign incentives to import with market OF CALIFORNIA factors. Perhaps it's too early to say that 6, 700 members are trained to provide ac­ the flat rate has had a supply-side effect in counting and auditing services, management IN THE HOUSE OF REPRESENTATIVES stimulating growth. But officially registered advisory services. tax advice, personal finan­ Tuesday, September 15, 1987 imports were up 30% in 1986, and a further cial planning and other services; and increase is projected for this year. Whereas certified public accountants are Mrs. BOXER. Mr. Speaker, I feel very privi­ Preliminary data also show that customs employed in public practice, industry, busi­ leged today for the opportunity to honor the and revenue taxes have already significantly ness, government and education; and memory of Thomas D' Alesandro. Whf le serv­ expanded government income. "Our goal," Whereas certified public accountants play ing the people through years in public office says Mr. Cabezas. "is to collect 4% of GDP a crucial role in the business and financial as a Congressman and as the mayor of Balti­ in taxes this year and 7% by 1989." That community in the Commonwealth of Massa­ chusetts; and more, he always remained one of the people. should give the government the revenues it He lived his life as we should hope to live needs while leaving business with enough Whereas the Massachusetts Society of savings to take the lead in economic reacti­ Certified Public Accountants, Inc. encour­ ours, with integrity, with compassion, with care vation. ages members to adher to high professional for the common person. A staunch supporter Bolivia still has major problems. The prin­ standards of conduct and participation in of the New Deal, the world is a better place cipal source of foreign-exchange earnings continuing professional education program; for his having graced it. Thomas D' Alesandro comes from the cocaine traffic. Bolivia's for­ and made a difference. His life calls to mind what eign debt is equivalent to GDP and real in­ Whereas the public accounting profession we should hope to do, .and his memory lives terest rates are 35% to 45% . One-quarter of the plish. workers are unemployed, including two out meeting the changing needs of corporations, of three <20,000) miners from a once-power­ investors, credit grantors. labor, govern­ I had the pleasure of meeting Mr. D'Alesan­ ful mining industry whose costs now far ment, and the general public; dro here on the House floor at his daughter's exceed earnings. Now, therefore, I, Michael S. Dukakis, swearing-in ceremony. He was an extremely Carlos Mesa. a respected newsman and ex­ Governor of the Commonwealth of Massa­ warm man, a very gracious man. He asked ecutive director of a private TV station chusetts, do hereby proclaim September 20- me to look after his daughter, Nancy. Well, I here, says. "Yes, an outsider who looks at 26, 1987 as "Certified Public Accountants told him I would, but after watching the our foreign debt, weak economy and power­ Week" and urge the citizens of the Com­ monwealth to take cognizance of this event newest Representative from San Francisco at ful narcotics trafficking could say that we work, I should add. Mr. D'Alesandro, we'll look are living on the edge of an economic preci­ and to participate fittingly in its observance. pice. But if you had lived here for the past after each other. few years. you would now see hope. The RESOLUTIONS CONGRATULATING THE PuBLIC critical fact is that the government has put ACCOUNTANCY PROFESSION ON ITS CENTEN­ on the brakes. It has a coherent econ.omic NIAL IN COMMEMORATION OF THE policy. Moreover," he adds with relief. "we Whereas nineteen hundred and eighty­ 225TH ANNIVERSARY CELEBRA­ have had five years of democracy and there seven marks the one hundredth birthday of TION OF THE TOWN OF ATHOL is now a strong orientation to resolve the the certified public accountancy profession AND THE VISIT OF THE DUKE problems of the country within the context in the United States; and OF ATHOLL of democracy." Whereas the sixty-seven hundred mem­ bers of the Massachusetts Society of Certi­ fied Public Accountants, Inc.. are celebrat­ HON. SILVIO 0. CONTE CPA'S DESERVING OF PRAISE ing this milestone; and OF MASSACHUSETTS Whereas certified public accountants pro­ IN THE HOUSE OF REPRESENTATIVES HON. BARNEY FRANK vide important services in the business and financial community in the Commonwealth Wednesday, September 16, 1987 OF MASSACHUSETTS of Massachusetts; and IN THE HOUSE OF REPRESENTATIVES Mr. CONTE. Mr. Speaker, I rise today to Whereas certified public accountants are commemorate the 225th anniversary of the Wednesday, September 16, 1987 employed in public practice, industry, busi­ ness, government. and in education; and town of Athol's incorporation. I also want to Mr. FRANK. Mr. Speaker, recently, the Gov­ Whereas certified public accountants are take this opportunity to honor the Duke of ernor of Massachusetts, Michael Dukakis and trained to provide accounting and auditing Atholl's visit to the town that his family helped the General Court of Massachusetts. which is services, management advisory services, tax found many years ago. The grandeur of the the formal name for the Massachusetts Legis­ advice, personal financial planning, and celebration planned by the residents of Athol lature, gave appropriate recognition to the im­ many other services; and should serve to tell us here in the U.S. Con­ portant work done for all of us by certified Whereas accurate financial information gress that Americans have not forgotten "the public accountants. 1987 marks the 1OOth an­ plays an important role in the continuing rock from whence they were hewn." well-being of business, industry and govern­ niversity of this important profession in its cur­ ment; and The early settlement in the area now known rent organizational form. and the proclamation Whereas the Massachusetts Society of as Athol was originally referred to as Pequoig. by the Governor and the resolution by the leg­ Certified Public Accountants, Inc., is dedi­ Among the residents-and perhaps the larg­ islature point out how important their work is, cated to promoting and maintaining the est landowner in Pequoig-was Col. John and correctly notes that the members of this highest professional standards of practice; Murray. When the residents met in 1762 to in­ profession are entitled to congratulations on now therefore be it corporate the township, Colonel Murray sug­ the work they do. Resolved, That the Massachusetts Gener­ gested the name "Athol,'' as the terrain of the I wish to extend my congratulations to the al Court hereby commends and congratu­ area reminded him of his father's dukedom in lates the men and women in the public ac­ 6, 700 members of the Massachusetts Society countancy profession on the occasion of Scotland. of Certified Public Accountants for their part in their centennial and for their contributions Since the departure of Colonel Murray, no commemorating this important anniversary. to society; and be it further member of the Duke's family has returned to And I include the proclamation of Governor Resolved, That a copy of these resolutions visit the township. However, the invitation ex­ Dukakis and the resolution of the General be transmitted forthwith by the clerk of the tended and accepted by the present Duke of 24252 EXTENSIONS OF REMARKS September 16, 1987 Athol, George lain Murray, is a sign of the est message from this reunion will be the Championships at Clermont-Ferrand, France, strong value that continues to be placed on warmth of kinship and community that will for­ giving the United States its second and final tradition by the town's residents. ever glow. individual title. lsaev, the defending world Upon reflection of the importance of this re­ champion, lost to Smith 5-3, in the finals of union, I am moved. So oft~n the history of our JUSTICE MARSHALL'S MEAN­ last summer's Goodwill games in the Soviet people and our Nation is seen as a deter­ SPIRITED REMARKS Union. Smith's only other close match in mined traveler that never looks back. Because these world championships was a 6-2 deci­ of our Nation's rapid growth through numer­ sion over a Mongolian wrestler. ous developmental stages, it is often thought HON. GERALD B.H. SOLOMON This summer's events were a repeat of that ambitions for the future blinded us to the OF NEW YORK John's activities last year when he won two importance of experiences with the past. This IN THE HOUSE OF REPRESENTATIVES titles in the Goodwill Games. is not true of the people of Athol. Wednesday, September 16, 1987 Mr. Speaker, in Athol's 225th anniversary He is believed to be the first U.S. wrestler Mr. SOLOMON. Mr. Speaker, when Su­ to ever win a world title while a student in col­ celebration I have rediscovered the warmth preme Court Justice Thurgood Marshall rated that is felt in the reunion with one's past. For lege. President Reagan the worst President ever on the residents of Athol, this visit is an opportu­ Mr. Speaker, last March he won the College civil rights, he not only violated all rules of nity to cultivate intimacy with the very founda­ NCAA National Championship and was select­ courtesy and decorum, he violated the truth. tions of their community. For the Duke, this re­ ed the Nation's Outstanding Wrestler. In July In a recent television interview, Justice Mar­ union is a chance to witness the growth of the 1987, he won the gold at the Pan American shall exposed the frustration he must feel at seeds planted by his family. For both, it is a games held in Indiana. the prospect of a future Supreme Court more chance to reflect on the inherent value of tra­ in tune with mainstream America. All the ex­ In addition, John Smith has been nominated dition. cuses being used to oppose President Rea­ for the Sullivan Award, which goes to the out­ This event is truly deserving of a grand standing amateur athlete in the Nation. celebration. In fact, both the residents of Athol gan's nomination of Robert Bork to the Su­ preme Court are being stripped away, one by I'm sure that my colleagues and the Nation and the Duke have determined that the impor­ will join me in sharing pride in John Smith's tance of this visit merits the accompaniment one, leaving only the most blatantly partisan attacks. And to this partisanship, sadly wrestling accomplishments. He brings honor of the Duke's private army. The Duke is the to Oklahoma, to OSU, and to the United commander of the last private army recog­ enough, Justice Marshall is making his contri­ States. nized in Europe-an army dubbed the "High­ bution. landers." The training and splendor of this President Reagan was genuinely hurt when he heard of Justice Marshall's remarks, and ceremonial entourage will, no doubt, add im­ JUDY HARBIN: MODEL CITIZEN mensely to the pride and joy that will be felt understandably so. Ronald Reagan, more throughout the visit. than any man I've ever known, has never had Reflection on the events of next week's a prejudiced bone in his body, which makes HON. DONALD E. "BUZ" LUKENS Marshall's remarks all the more mean-spirited. ceremony calls to mind a ceremony of the OF OHIO past. In 1983 I attended the dedication of the I would ask Justice Marshall this question: newly renovated Pequoig Hotel. At that point Which has really benefited blacks more, the IN THE HOUSE OF REPRESENTATIVES Athol was experiencing tough times. The town "Great Society" approach which nearly made Wednesday, September 16, 1987 had one of the highest unemployment rates in blacks permanent wards of the state, or the Mr. DONALD E. LUKENS. Mr. Speaker, I the State and the only resource available to Reagan approach, which honors the 1964 would like to honor today a young lady from Athol was the town's people. The completion Civil Rights Act by enforcing a color-blind so­ Ross Township, OH who tragically lost her life of the Pequoig project marked a crucial first ciety and gives blacks the dignity they de­ step in Athol's recovery. Since then, the serve? in an automobile accident this past year. downtown area has undergone a revitalization I would add, Mr. Speaker, that thanks to Miss Judy Harbin was a very bright, person­ that includes the Dumont project, the renova­ Ronald Reagan, we have enjoyed the longest able young lady who truly epitomized the tion of the Delta building, and the upgrading of peacetime prosperity in this Nation's history. A phrase "model citizen." She strove to be a the cityscape. The strength of the revitaliza­ rising tide lifts all boats, and the Reagan revo­ better person each day and was willing to tion required the construction of almost 200 lution has lifted the prospects of every man, push her limit as far as possible. Her spirit new parking slots-and even this addition will woman, and child in this country. was one that burned bright and touched ev­ barely meet the demands of increased busi­ eryone who came into contact with her. A nat­ ness downtown. OKLAHOMA HAS ANOTHER ural leader, Judy was successful not only with Today, Athol's unemployment rate is signifi­ WORLD CHAMPION her school work but also with the many out­ cantly below the national average and civic side activities and other projects that helped leaders continue to plan for increased eco­ HON. WES WATKINS her community and those less fortunate than nomic activity. Underlying this recent develop­ OF OKLAHOMA she. ment is a strong sense of cooperation among IN THE HOUSE OF REPRESENTATIVES Never one to say no, she also possessed a everyone involved with Athol. While I have Wednesday, September 16, 1987 very strong and aggressive attitude. Judy was fought for Federal funds, State government of­ always available to give help to anyone in ficials, shopkeepers, industries from the area, Mr. WATKINS. Mr. Speaker, Oklahoma, need of it and simply put, served as a beauti­ and, of course, Athol's residents have all which has long been a State of champions ful example to other young people. worked hard to fuel the momentum of this re­ such as Jim Thorpe, Freckles Brown, Mickey Our Nation would be much better served if vitalization. Mantle, Pepper Martin, Carl Albert, and many we had more Judy Harbins among our young The celebration planned for the 225th anni­ others-again has fielded a champion and people. Judy lived a productive and fruitful, versary is yet another example of the commit­ John Smith has returned my alma mater, but tragically short life. She accomplished ment felt by the residents of Athol to their Oklahoma State University, to international ac­ community. Without a doubt the people of claim in wrestling. more in her few years on Earth than many Athol are still the greatest resource available John lives in Del City, OK, which is just people accomplish in a lifetime. I am proud to the area. And I know that the 225th anni­ about 20 miles too far west to be considered that Judy called me a friend. versary will not be the last concerted effort by a part of the Third Congressional District, and Athol's residents. There are more projects to he is now a senior at Oklahoma State Univer­ be undertaken and I am confident in Athol's sity in the Third Congressional District of Okla­ capabilities to meet upcoming challenges. homa. Mr. Speaker, the ceremony and regalia that In August, John defeated Kahser lsaev of will take place during the next week will be the Soviet Union, 5-4, in the 136-pound gold exciting for everyone involved. Yet the strong- medal match, at the World Freestyle Wrestling September 16, 1987 EXTENSIONS OF REMARKS 24253 BICENTENNIAL CELEBRATION The amendments I am introducing today will the bicentennial of the U.S. Constitution, the SPONSORED BY HEWLETT ELE­ permit service to single pregnant women. sesquicentennial or 150th birthday of Presi­ MENTARY SCHOOL Surely, if we can provide training to single dent Cleveland is marked in his home State of pregnant women before they deliver, we are New Jersey, and in his hometown of Caldwell, HON.RAYMONDJ.McGRATH that much ahead of "the curve" in making in northwest Essex County. OF NEW YORK these women more competitive in the labor On September 15, 1887, at the official cere­ market. IN THE HOUSE OF REPRESENTATIVES mony marking the centennial of the U.S. Con­ I am hopeful that these amendments can stitution, President Grover Cleveland, the 22d Wednesday, September 16, 1987 be added in conference to the House passed and 24th President of the United States, a Mr. McGRATH. Mr. Speaker, it is my pleas­ School Improvement Act of 1987, since it is native of New Jersey, born in the town of ure to bring to the attention of this body the my understanding that the Senate will include Caldwell, presided at the centennial ceremony outstanding program being conducted by an similar language to these amendments when it at Constitution Hall in Philadelphia, PA, sur­ elementary school in my district to commemo­ acts on its version of the bill. rounded by members of his Cabinet, the Su­ rate the Bicentennial of the Constitution of the H.R.- preme Court of the United States, Members of United States. Be it enacted by the Senate and House of Congress, elected State and local officials, In recognition of this important day in the Representatives of the United States of and the general public. history of the United States of America, ad­ America in Congress assembled, He spoke these words on behalf of the ministrators, teachers, and students of Hewlett SECTION 1. CLARIFICATION OF DISTRIBUTION OF ASSISTANCE TO SINGLE PARENTS AND people of America on this historic occasion: Elementary School will be participating in a 2- SINGLE PREGNANT WOMEN. When we look down upon 100 years and day educational celebration of patriotism and (a) USES OF FUNDS.-Section 201 of the see the origin of our Constitution, when we citizenship. On September 16, 1987, the stu­ Carl D. Perkins Vocational Education Act contemplate all its trials and triumphs, dents will be involved in an all-day "teach in" <20 U.S.C. 2331) is amended- when we realize how completely the princi­ on the Constitution which will include local po­ O> in subsection Cb><4>, by striking out "or ples upon which it is based have met every litical leaders as guest speakers. The students homemakers;" and inserting in lieu thereof national need and national peril, how de­ will also join President Ronald Reagan in a ", homemakers, or single pregnant women;"; voutly should we say with Benjamin Frank­ and nationwide Pledge of Allegiance and then pro­ lin, "God governs in the affairs of men," (2) in subsection (f), by striking out "and how solemn should be the thought that to ceed to recite the Preamble to the Constitu­ homemakers" each place such term appears us is delivered this ark of the covenant, and tion led by retired Chief Justice Warren and inserting in lieu thereof ", homemakers, to us is given the duty to shield it from im­ Burger. and single pregnant women". pious hands. The second day of this patriotic celebration (b) DISTRIBUTION OF ASSISTANCE.-Section 202(4) of the Carl D. Perkins Vocational Although President Cleveland's style of ora­ will be highlighted by a red, white, and blue tory is more typical of his time than of our balloon launch and a moving speech by a Education Act <20 U.S.C. 2332) is amended by striking out "and homemakers;" and in­ own, his basic belief in our Constitution as a local appellate court judge. The students will serting in lieu thereof ", homemakers, or document that has survived because it contin­ also demonstrate their respect and admiration single pregnant women;". ues to meet the needs of a free people is as for the Constitution and their Nation by joining true today as it was in 1887. together to sing a variety of patriotic songs As Caldwell and surrounding communities and hymns. LOOKING BACK TO THE celebrate this day of great meaning to our I wish to commend Hewlett Elementary CONSTITUTION'S CENTENNIAL Nation by honoring the man who presided School and those individuals who have made over the centennial event with such grace and this outstanding program a reality. Stella HON. DEAN A. GALLO flare, it is appropriate to recognize the special Pompa, Rose Weinstein, Clare Lenz, and Prin­ OF NEW JERSEY contributions of Mayor George T. Imperial and cipal Dr. Mildred David, I applaud your out­ IN THE HOUSE OF REPRESENTATIVES local historian Jacqueline Beusse who had standing efforts in bringing this important A. Wednesday, September 16, 1987 the foresight and dedication to make this cele­ moment in the history of the United States to the attention of the young people of our com­ Mr. GALLO. Mr. Speaker, as we celebrate bration possible. As the Member of Congress who represents munity. The program you have designed will the bicentennial of the U.S. Constitution, I certainly serve to foster increased awareness would like to look back to a point in our histo­ these fine people in the town of Grover Cleve­ and respect among the young people of Hew­ ry that is halfway between today and the day land's birth, I commend to your attention their lett Elementary School for this Nation and this in 1787 when the delegates from the 13 efforts on this special day in our Nation's his­ important document which has a profound States signed the U.S. Constitution and tory. impact on all our lives. formed our current system of government. The centennial celebration in 1887 has a special meaning to me and to my constitu­ VA HONORS OUTSTANDING VO­ CLARIFYING THE INTENT FOR ents, because our President at the time of this CATIONAL REHABILITATION DISTRIBUTING ASSISTANCE TO celebration was the only New Jersey born AND COUNSELING PERFORM­ SINGLE PARENTS AND SINGLE Chief Executive to serve in this high office ANCES PREGNANT WOMEN UNDER during our first 200 years as a nation. THE VOCATIONAL EDUCATION In tribute to the U.S. Constitution, the funda­ ACT mental law of the land, and the role of Presi­ HON. G. V. (SONNY) MONTGOMERY dent Grover Cleveland, 100 years ago on OF MISSISSIPPI HON. PAT WILLIAMS September 15, 1887, the town of Caldwell, the IN THE HOUSE OF REPRESENTATIVES residents and neighboring communities will OF MONTANA Wednesday, September 16, 1987 IN THE HOUSE OF REPRESENTATIVES celebrate U.S. Constitution Week, from Sep­ tember 14 through the 21 of September, with Mr. MONTGOMERY. Mr. Speaker, the Vet­ Wednesday, September 16, 1987 American flags displayed at residences and erans Administration's Department of Veter­ Mr. WILLIAMS. Mr. Speaker, I rise today to business sites, and with the displaying of the ans Benefits recently established an awards introduce amendments to the Carl D. Perkins specially designed Constitution flag on the program to formally recognize outstanding ac­ Vocational Education Act. These amendments town's green. complishments in vocational rehabilitation and clarify the intent of the Congress regarding Grover Cleveland was born in the Golden counseling and to commend individuals for the distribution of assistance to single parents Anniversary, the 50th anniversary year of the performing their duties in a clearly superior and single pregnant women under this act. U.S. Constitution in Caldwell, NJ, and was the manner. The awards also recognize severely These amendments are necessary because 22d President of the United States, presiding disabled veterans who, against great odds, the Department of Education has interpreted at the centennial celebration, the 1OOth anni­ successfully complete their rehabilitiation pro­ the act to prohibit service to single pregnant versary of the Constitution, in Philadelphia, grams. Three individuals have won this first women under the set-aside for single parents. PA, and in the year when the Nation marks annual Vocational Rehabilitation Award. 24254 EXTENSIONS OF REMARKS September 16, 1987 Dr. James S. Porter, counseling psycholo­ this regard I wish to submit for the RECORD than on diplomatic strategies to ensure the gist at the VA's Jackson, MS, regional office, the August 17, 1987, editorial from the Provi­ nation's securtity. is being cited for his expertise in counseling dence Journal entitled "Soviet SS-24s on the seriously disabled and impared veterans, move: a jolt to arms control." THE SANDINISTA'S SECRET many of whom otherwise could not have ob­ [From the Providence Journal, Aug. 17, AGENDA tained suitable and gainful employment. 1987 Mr. Norbert E. Horak, vocational rehabilita­ SovIET SS-24s oN THE MovE: A JoLT TO ARMS tion specialist at the VA's Des Moines, IA, re­ CONTROL HON. DONALD E. "BUZ" LUKENS gional office, is being cited for his examplary The Soviet Union has beaten the United OF OHIO work in providing rehabilitation services to dis­ States to the goal both nations have had of IN THE HOUSE OF REPRESENTATIVES abled veterans. In one case, he helped a seri­ mobility for their big intercontinental bal­ Wednesday, September 16, 1987 ously disabled combat-injured Vietnam veter­ listic missiles. The USSR has managed to put its 10-warhead, SS-24 missiles on rail­ Mr. DONALD E. LUKENS. Mr. Speaker, an overcome physical, academic, and financial road cars, thus making it difficult to pin­ am inserting for the record an editorial by obstacles to complete his program goal of be­ point their locations. Unless the country Morton Kondracke which appeared in today's coming a high school teacher, Mr. Horak's can match the feat soon-and being a de­ edition of the Washington Times. persistence with this veteran was rewarded mocracy rather than a totalitarian state is Mr. Kondracke, who is by no means a con­ and the veteran is now rehabilitated. Another one of the difficulties in doing so-a period of nuclear instability looms, during which servative, nevertheless recognizes the Sandi­ severely injured combat veteran has pro­ nista's true agenda in recent "peace talks" - gressed beyond the bounds of his severe time arms control agreements may be harder to come by. consolidation and expansion. physical limitations due in large measure to The Kremlin acknowledged its new de­ When even moderate-to-liberals like Morton Mr. Horak, who will not let him give up on him­ ployment Wednesday after the White Kondracke see through the false peace plans self. House confirmed revelations of it by Sen. now being considered in Central America, it is Finally, Mr. Errol G. McCall is VA's Disabled Jesse Helms, R-N.C. So far, U.S. satellites time that the U.S. Congress does. Veteran of the Year. Mr. McCall is a 100 per­ have detected only five of the missiles, but When Congress accepts that fact, they will cent service-connected veteran whose reha­ since they are meant to elude detection, there probably are others hidden. How also understand that without the pressure the bilitation program at the VA's Hartford, CT; re­ Contras put on the only Communist govern­ gional office took several years to accomplish. many only Moscow knows. The SS-24 rolls around on 62,000 miles of ment in Central America, the freedom of Cen­ Although his combined disabilities could have railroad track, hiding in a thousand tunnels tral Americans is in jeopardy. totally excluded him from employment consid­ scattered throughout the Soviet Union. It Peace, democracy and hemispheric securi­ eration, his determination to prepare for and can hit any major target in Europe or Amer­ ty might be advanced by the Arias plan if acquire a suitable job motivated his case man­ ica as !l.ccurately as the immobile SS-18, democrats outside Nicaragua force the San­ ager to work with him toward realizing his am­ now the bulk of the Soviet arsenal. dinistas to live up to the accord they signed. bition. Mr. McCall is now employed at the VA The White House called this develop­ A debacle is more likely-the dismantling regional office in Hartford as a finance division ment-which has long been anticipated by of the Contras in exchange for some token employee, and his prospects for continued U.S. intelligence-"sobering." That under­ steps toward democracy. If this occurs, the states the case. United States will be seen as abandoning yet employment are excellent. The Hartford re­ Mobile missiles are designed to enhance another force of indigenous fighters who de­ gional office considers itself privileged to have nuclear stability because, as moving targets, pended upon us. Mr. McCall as a member of its work force. they reduce the ability of an enemy to The third possible outcome is the likeliest: The VA's vocational rehabilitation and coun­ launch a successful first strike. This mobili­ that the Guatemala plan will fall apart. seling divisions around the country practice ty makes them harder to verify, complicat­ The peace plan's author, Costa Rican what they preach. They rehabilitate our dis­ ing arms control, but since the goal of arms President Oscar Arias, said that on Nov. 7 abled veterans and, in many cases, hire them control is to enhance stability by deterring he will "pass judgment" on whether the as productive, competent employees. first-strike adventurism, the trade-off is con­ Sandinistas are following the plan's terms, sidered worthwhile. but he is not optimistic about their compli­ Mr. Speaker, these three fine Americans will Unfortunately, this trade-off in pursuit of ance. be honored on Tuesday, September 22, 1987, stability assumes that mobile missiles are Various U.S. officials insist that when Mr. at a reception sponsored by the Disabled deployed by both sides. If done by one side Arias met with President Reagan on June American Veterans. I know my colleagues will alone, the effect is extremely destabilizing. 17, he said that if the Sandinistas failed to want to join me in offering our deep apprecia­ And while the Kremlin has the political ca­ democratize, "you will be free to do your tion to Dr. Porter and Mr. Horak for their out­ pacity to run the SS-24 through the streets thing." Mr. Arias denied this to me, but all standing services. We also congratulate and of Moscow without worrying how Musco­ over Latin America there is evidence that applaud Mr. McCall's determination in over­ vites might react, the mobility of the MX­ leaders and populations expect the United once intended as America's mobile missile­ States to act like a great power and deal coming the limitations of his disability. was sidetracked by the "not in my back" with the Sandinista threat. yard syndrome that scuttles reasonable dis­ A poll conducted by an affiliate of Gallup A JOLT TO ARMS CONTROL course in too many areas of American poli­ International-and published in Guatemala tics. the day the Arias agreement was signed­ One alternative to the MX, the single-war­ strongly suggests that the Contra policy has HON. GERALD B.H. SOLOMON head Midgetman, remains on the drawing public support in Central America and the OF NEW YORK board. Another, strategic defense, is years Sandinistas do not. off. Neither may ever be deployed. So while The Sandinistas' strategy for dealing with IN THE HOUSE OF REPRESENTATIVES the SS-24 plays hide and seek with U.S. sat­ the Arias plan seems directed straight at Wednesday, September 16, 1987 ellites, the MX will sit defenseless and the U.S. Congress. They want the Contras Mr. SOLOMON. Mr. Speaker, as the United expose in old Minuteman III siloes. off their backs at the cheapest possible Whether the SS-24 deployment violates price in terms of democratization-perhaps States and the Soviets move closer to signing the defunct SALT II Treaty, as Senator at no cost at all, if collapse of the Arias plan an intermediate Nuclear Arms Control Agree­ Helms alleges, is debatable. In any event, can be blamed on the Reagan administra­ ment, it is crucial that we carefully evaluate the U.S. can hardly complain: it abandoned tion and if furious Democrats in Congress the impact this agreement will have on the the unsigned treaty last year. However, the then cut off Contra aid in revenge. overall military balance. problem is less one of treaty violations than The Guatemala agreement also contains The American people should be mindful of of threats to U.S. security which were in­ ambiguities that the Sandinistas are free to the serious discrepancies which exist between creasing regardless of SALT II. exploit in order to torpedo the pact. NA TO and Warsaw Pact conventional forces, Deployment of the SS-24 ushers in an era The Sandinistas are spreading word that of superpower uncertainty in which U.S ne­ they are ready to comply with the pact's de­ as well as the instability in the strategic bal­ gotiators will find verifiable treaties virtual­ mocratization requirements, and that they ance created by Soviet strategic advances. ly impossible to negotiate. Ultimately this are likely to take steps showing good faith The recent deployment of the mobile SS-24 means either the Kremlin must become in advance of Nov. 7. missiles by the Soviets and our inability to trustworthy, or future U.S. presidents will­ With respect to the Contras, the Sandinis­ deploy a similar system is the case in point. In have to rely yet more heavily on military tas want it both ways: They say the force is September 16, 1987 EXTENSIONS OF REMARKS 24255 less than a third as big as the United States deal with Sandinismo than the military There are some who say the crisis on the claims, that it's demoralized and having no means employed by the Reagan administra­ farm is over. They are wrong. On August 17, success on the battlefield, yet also that it's tion. But until such a concerted effort is the New York Times reported in a page 1 the cause of Nicaragua's economic misery under way, the United States needs to main­ and suspension of the constitution under tain the military option. story that in the past 2 years, 100 farm-stress the state of emergency. If House Speaker Jim Wright and the deaths have been recorded in Oklahoma Their bottom line is that Sandinismo other Democrats are going to abandon Nica­ alone. stands for political pluralism, a mixed econ­ ragua, they had best get a plan ready to I have asked the Rules Committee to make omy and a non-aligned foreign policy, and house the Contras, their relatives and hun­ my resolution in order as an amendment on that only the enmity of the United States dreds of thousands of other refugees in the H.R. 3030, the farm credit bill this body will be prevents its pacific success. The logical con­ United States. The better plan is for Con­ addressing Monday. clusion is that the United States should cut gress to re-fund the Contras, put the mili­ off the Contras and give peace a chance. tary aid in escrow, and give peace a real And, I have just been informed that Willie But by the evidence of history and the chance. Nelson has decided to feature support of the testimony of honest people who try to live National Rural Crisis Response Center at under the Sandinistas, all of this is a colos­ Farm Aid Ill, which will be an event of Satur­ sal deception. PUBLISHERS WAGE BATTLE day, September 19, in Lincoln, NE. The truth is that the Sandinistas are AGAINST ALCOHOL AND DRUG Mr. Speaker, as I said, the crisis in rural Marxist-Leninists, allies of the Soviet Union ABUSE America and on the farm has not passed. and believers in world revolution. Far from Let me share with my colleagues some making life better for the Nicaraguan people, the Sandinistas have made it worse HON. RAYMOND J. McGRATH facts: for almost everybody. OF NEW YORK The deep and severe crisis in rural America Hiding behind a "democratic mask," the IN THE HOUSE OF REPRESENTATIVES and on the American family farm is continuing. Sandinistas have always acted like ruthless Wednesday, September 16, 1987 Families are leaving the farm in record num­ communists. They killed some 800 persons bers and as the agriculture economy declines. after taking power. Peasants in the country­ Mr. McGRATH. Mr. Speaker, I would like to Stores are being boarded up and aban­ side suspected of collaborating with the bring attention to the significant contribution doned in rural towns and communities all Contras are often jailed for years, tortured the Association of Free Community Papers of across the United States. and sometimes killed. During the 1984 elec­ Long Island has made the battle against drug tions, rallies and speeches of opposition can­ A national survey conducted by Dr. Luther didates were broken up by Sandinista and alcohol abuse in our society. The group Tweeten, Oklahoma State University Regents toughs. which is made up of publishers from Nassau, agricultural economics professor, and agricul­ Amid all this, Managua is a desperate and Suffolk, and Queens Counties, sponsored and tural economists from other southern land­ sad city. publicized a series of special meetings grant colleges, revealed that 82 percent of The Sandinistas blame their woes on the throughout the region to focus public attention Americans surveyed feel the family farm is a Contras and America, but they have caused on the growing threat that drug and alcohol most of their economic problems themselves vital part of our heritage and should be pre­ abuse poses to our society. Officials of gov­ served. by confiscating land and turning most of it ernment agencies in the three county area over to collectives. The economy is ostensi­ In August, Mona Lee Brock, a constituent of bly 50 percent in private hands, but the gov­ made special presentations on various as­ mine who lost first her farm, then her hus­ ernment tells businesses what to produce, pects of substance abuse in many communi­ band, stated at a Capitol grounds press con­ what prices to charge, what to pay workers ties. ference, that during the past year there had and furnishes materials-which are almost The publishers also devoted a considerable been 54 suicides documented in Oklahoma always in shortage-on the basis of political amount of conspicuous editorial space to the because of the agriculture depre~sion. loyalty. The annual inflation rate is more promotion of drug abuse education and pre­ than 1,000 percent. Mrs. Brock has, since her husband's death, vention activities. been associated with a crises hot-line, AG­ One gets the strong feeling that the San­ Newspaper space, particularly in weeklies, dinistas signed on to the Arias plan out of LINK, initiated by the Oklahoma Council of desperation. What the Sandinistas want is a is a valuable commodity. I commend the Churches, to respond to crisis calls from farm members of the Association of Free Commu­ respite from the Contra struggle, which, by and rural families who have financial, legal, nity Papers for their generosity. I also con­ their own accounts, is costing the lives of emotional, and medical problems associated gratulate them for their community involve­ 100 soldiers a month and driving the econo­ with the farm crisis. my to the brink of ruin. ment and commitment to helping eradicate The National Rural Crisis Response Center The Contras create leverage for the the horrors of substance abuse. The publica­ is being established to serve as a national link United States and other democracies­ tions involved reach nearly every home in an responding to the needs of these thousands almost certainly there would be no Arias area of more than 4 million people. Thus, the of rural and farm families. The National Rural pact without them-and they provide the association's campaign against drug and alco­ only hope there is of making the Sandinis­ Crisis Response Center works like this: hol abuse has been a tremendous public serv­ tas live up to the terms of the Guatemala A person in distress will call a toll-free tele­ ice and resource to help deal with a critical agreement. phone number which will be answered by a To make this goal a reality requires deter­ national problem. mined action on the part of the world's volunteer. democrats. This effort needs private finan­ Using a computer data bank, the National cial and moral support. The fractured inter­ ON THE NATIONAL RURAL Rural Crisis Response Center volunteers will nal opposition needs to unify and it needs CRISIS RESPONSE CENTER be able to refer the call to an appropriate training that could come from the political local agency in the farmer's geographic area parties in the United States-or, better yet, HON. WES WATKINS throughout the Nation to try to meet the finan­ the democracies of Europe and Latin Amer­ OF OKLAHOMA cial, legal, spiritual, emotional, medical, shel­ ica. ter, or food needs. Above all, the internal opposition, the IN THE HOUSE OF REPRESENTATIVES The National Rural Crisis Response Center Contras, the Reagan administration and the Wednesday, September 16, 1987 Latin American democracies need to develop will be funded by private an corporate contri­ lists and timetables spelling out standards Mr. WATKINS. Mr. Speaker, I have today in­ butions with no Federal funding involved. Its of conduct that they expect the Sandinistas troduced a House joint resolution calling on neighbors helping neighbors; and to meet. Watchdog groups, American and the Congress to recognize, encourage, and There will be no direct Federal costs in­ international, need to be formed to monitor support a National Rural Crisis Response volved in enacting the provision. Sandinista compliance, and groups such as Center, which is sponsored by the American Mr. Speaker, I urge that my colleagues­ the Organization of American States need to be ready to inflict strong sanctions if the Family Farm Foundation, a not-for-profit 501- both rural and urban-join me in cosponsoring Sandinistas show signs of cheating. 3-C tax-exempt foundation formed in 1985 to this legislation and that it move, either as an For the world's democrats to demand that promote the concept of the American family amendment, or as a separate piece of legisla­ Nicaragua live up to its pledge of 1987 would farm as an integral part of America's way of tion to call attention to the needs of the farm be a far more humane and moral way to life. and rural community. 24256 EXTENSIONS OF REMARKS September 16, 1987 DIRECTOR WICK'S ADDRESS ON Chairman Dante Fascell observed over a born with these advantages-which squan­ PUBLIC DIPLOMACY decade ago: dered its resources and failed in the market­ "Today the success or failure of foreign place of ideas? policy undertakings is frequently affected We can fail you know! The competition, HON. JIM COURTER more profoundly by what people think and although not naturally at home in a mar­ OF NEW JERSEY say than by the workings of traditional di­ ketplace of ideas-or any other marketplace, IN THE HOUSE OF REPRESENTATIVES plomacy." for that matter-is learning fast, is unafraid America's post-war public diplomacy to invest, and freely uses the huge advan­ Wednesday, September 16, 1987 effort was a major success, but it was limit­ tage of deception. Mr. COURTER. Mr. Speaker, yesterday, the ed. Time soon ran out on the political will to This is why we have moved decisively with U.S. Advisory Commission on Public Diploma­ sustain a large financial burden. And, the the expansion of major programs and the cy began holding an important conference on effort to reach mass populations overseas launching of new technologies: doubling was severely limited by the technical means Fulbright exchanges; expanding our inter­ "Public Diplomacy in the Information Age." available. U.S. Information Agency Director Charles Z. national visitors program; modernizing and Eventually, the financial fuel of the effort expanding the Voice of America, and start­ Wick spoke to the assembly today on the dwindled and the public diplomacy machine ing Radio Marti; creating the global satellite topic of "Public Diplomacy in the Global Mar­ started to sputter. My predecessors did the television network-WORLDNET using sat­ ketplace of Ideas." Because his address was only sensible thing: with fewer resources ellite communications to send our Wireless significant, far sighted, and I believe, very well stretched over more countries, they focused File direct to foreign media, and to speech received by the audience of experts present, I and targeted. Over 97% of our cultural and information to important foreign groups think it should be reprinted in the CONGRES­ information representatives came home through our libraries abroad; and our major from Germany. In Italy, all were removed new overseas book development and English SIONAL RECORD so that my colleagues may from Bari, Catania, Trieste, Genoa, Paler­ give it their consideration. language programs. mo, and Florence. We know only too well-as does Gorba­ PuBLIC DIPLOMACY IN THE GLOBAL But, in spite of these reductions, we were chev-that, fed by a steadily improving MARKETPLACE OF IDEAS still able to accomplish our mission by tar­ system of instantaneous global communica­ China, but we can smack 'em. Yes sir, ratify will impose no new costs on the United the American Judicature Society. boys, we got the capability to destroy their States. However, if litigation were to continue I would like to ask my colleagues to join me missiles or any suicide planes that come in and her many friends in honoring Judge or any suicide gunboats. That's because we because the Congress does not act promptly got the ultra-super, neon-colored, heat-seek­ to approve this legislation, the results could McDevitt's 30 years of community service and ing, radar-lock, brain-cell guided, teflon­ be very expensive indeed. Under its responsi­ dedication. Her contributions have been more coated, Vitamin-enriched FHT4987 anti-anti bility to protect the trust resources of the than appreciated. missile-missile." September 16, 1987 EXTENSIONS OF REMARKS 24259 Well, this so encouraged the gang in the seemed to agree. And so did Mrs. Thatcher, ed them with ruthless dispatch. One of my Pentagon that they broke into a couple of whose efforts for Soviet Jewry and human fellow prisoners then named us "the hos­ choruses of "Anchors Aweigh" & began hol­ rights in the Soviet Union have been con­ tages of detente," predicting that we would lering things like, "Remember Pearl sistent and forceful. be used as bargaining chips and released at Harbor." Yet the question of the primacy of the the next detente. One old admiral, who apparently had too human-rights issue in dealing with totalitar­ It was during the detente of the '70s that much lunch, lurched to his feet & toasted, ian countries is nevertheless a nagging one­ the U.S. Congress recognized the need to "Back to Grenada, boys." and one that is highlighted this week by link adherence to human-rights agreements So in a well-publicized maneuver, our fleet Soviet Foreign Minister Eduard Shevard­ with trade agreements. In 1973 it passed the began convoying those 2 Kuwaiti tankers nadze's visit to the U.S. Jackson Amemdment, which is based on the through the Persian Gulf. Our boys were The Soviet treatment of human rights is premise that liberalization of Soviet human­ ready & loaded for bear. so much a part of its policy toward the West rights policies is an indication of Soviet Over on the beach a couple of Iranians that it is impossible to view it as a separate good faith and that the absence of such were talking. "Hey, Ali," said one, "Have we issue. Throughout Soviet history there have good faith makes helping the Soviet econo­ still got a mine left & have we still got that been periodic "openings" to the West, dic­ my unacceptably risky. old boat with the 40-horse Johnson motor?" tated by the need to salvage a chronically This concept of "linkage" was expanded in "Yeah, Abdul," Ali says, "It's laying tottering economy by harnessing Wes tern the 1975 Helsinki accords, which packaged around somewhere." resources. They are usually accompanied by commitments to human rights with security "Good," Ali says. "Hey, let's go put a mine internal reforms, whose aim is to make arrangements· in Europe and Western recog­ in the path of that American convoy." Soviet bureaucracy less corrupt and ineffi­ nition of the postwar borders. Not surpris­ "Why not?" Abdul shrugs, "but how do we cient, and Soviet society more palatable to ingly, the Soviets have been trying to unlink know they'll hit it?" the free world. But Soviet leaders are these ever since. Now, in the euphoria of "Are you kidding?" Ali says, "We know always careful to restrict reforms to the su­ glasnost, they are trying to implement their their course & they're steaming in a perstructure. Free access to Western ideas own version of linkage; extorting conces­ straight line. They ain't even zig-zagging. and real freedom of speech, action and sions on policy in exchange for releasing What's more, they ain't got no minesweep­ movement are viewed as threats to the some of the hostages of detente. If the West ers." foundations of the system. permits itself to fall into this trap, there "Geez," Abdul says, "That's hard to be­ Regardless of the degree of "openness" will be no end to it; the political price for lieve. We been mining this gulf for 7 years toward the West at any given time, the each hostage will rise with each transaction. & a lot of ships have gone down. The Rus­ Soviet Union has supported violent move­ The West must realize that Soviet non-ad­ sians are using minesweepers. Are you sure ments and regimes. It is as comfortable with herence to human-rights contracts is not they ain't got none?" such regimes as it is uneasy with democra­ merely a humanitarian problem. On the . "Trust me," Ali says, "They ain't got cies. In this, nothing has changed. simplest and most pragmatic level, it raises none. All they got is the ultra-super, neon­ In other areas there have been some dra­ the question of credibility. Is it wise to rely colored, heat-seeking, radar-lock, brain-cell matic changes. Mikhail Gorbachev has insti­ on any agreements with a government that guided, teflon-coated, vitamin-enriched tuted reforms intended to decimate the bu­ has shown nothing but contempt for its own FHT4987 anti-anti missile-missile." reaucracy and increase productivity. And in signature on numerous agreements? Just as "Wow," Abdul says, highly impressed, an effort to forestall American strategic su­ questionable is the West's readiness to do "What if they hit our boat with that?" periority and eliminate the threat of the business with a regime whose trampling of "Don't worry," Ali says, "They probably Strategic Defense Initiative, he has adopted human rights is inseparable from its global ain't got it turned on." a conciliatory attitude in arms talks. anti-Western aggression. Under such cir­ He has recognized the need to placate art­ cumstances, when business dealings, tech­ ists and intellectuals, chafing at the sight of nology transfers and scientific exchanges FIGHT FOR HUMAN RIGHTS fewer restrictions in other communist coun­ are separated from the human-rights issue, MAY FIRE POLITICAL REFORM tries, and has allowed the publication of it is indeed a case of selling the Soviets the some of the books formerly on the Soviet rope with which to hang the democracies. Index. Most of these are, however, by dead Fighting for human rights in the Soviet HON. JIM SAXTON authors. The dissenting living are still Union is as politically prudent as it is moral­ OF NEW JERSEY banned. ly right. It can give an impetus to the care­ IN THE HOUSE OF REPRESENTATIVES Some political prisoners have been re­ fully controlled reforms until they acquire a Wednesday, September 16, 1987 leased, but unlike their predecessors in momemtum of their own and bring about Khruschev's time, they have not been reha­ real change, and it can ultimately moderate Mr. SAXTON. Mr. Speaker, I would like to bilitated; others still linger in prisons and Soviet foreign policy at a point where coop­ bring the following article to the attention of psychiatric wards. The emigration of Jews eration between the superpowers will be my colleagues who may not have seen it yet. has increased from less than a hundred a safer than playing Russian roulette. In this article, Natan Sharansky warns us month in recent years to 500, but it is still a against separating human rights issues from fraction of the annual rate of 50,000 in 1979, and a trickle when measured against the REPRESENTATIVE MEL LEVINE other dealings with the Soviet Union. This is a 400,000 who have expressed their desire to PROPOSES "INVESTING IN A very timely piece, in light of Soviet Foreign leave. A new draconian emigration law re­ NEW AMERICA" Minister Shevardnadze's visit to Washington. stricts applicants to those with relatives of FIGHT FOR HUMAN RIGHTS MAY FIRE the first degree living abroad. It thus dis­ POLITICAL REFORM qualifies more than 90% of potential Jewish HON. BUDDY MacKA Y 1 emigrants. OF FLORIDA Image-building is enjoying top priority IN THE HOUSE OF REPRESENTATIVES At 11 one night in 1982, my wife, Avital, today. Soviet officials are no longer evasive called a friend of Prime Minister Margaret Wednesday, September 16, 1987 Thatcher's. It was my fifth year in the and elusive. They seek the press with Madi­ gulag and she had just heard through the son Avenue savvy, with protestations of Mr. MACKAY. Mr. Speaker, our colleague friendship and flexibility. MEL LEVINE recently delivered a thoughtful grapevine ominous reports about my health. Image-building was also a primary con­ She wanted Mrs. Thatcher to bring up my cern in the detente of the 1970s. It permit­ and visionary speech to the San Francisco case with a Soviet official scheduled to meet ted the Soviets to exploit public pressures Rotary Club about the future of America's with the prime minister the next morning. created in the open societies of the West economy. Obviously peeved at being awakened, Mrs. While noting such healthy economic indica­ Thatcher's friend demanded, "Do you think while nipping in the bud any such pressures the whole world revolves around your hus­ at home. And while the West was preaching tors as today's low inflation and unemploy­ band?" Avital retorted: "You should thank and implementing disarmament and disen­ ment rate, Representative LEVINE cautioned God for the opportunity to participate in gagement, the Soviet Union was making vio­ that today's prosperity is based upon growing this struggle. Without freedom for people lent forays into Ethiopia, Angola, the and unsustainable debt. "How long can the Middle East, Afghanistan and Nicaragua. like my husband, there is no freedom for When such groups as Helsinki Watch, Am­ world's largest debtor remain the world's anyone. Not for you, not for me." He nesty International and Free Trade Unions, greatest power?" he asked. supporters of nuclear-free zones inside the Congressman LEVINE proposed a different • Mr. Sharansky was imprisoned for nine years in Soviet orbit, and Eurocommunists began to course in his speech: "Investing in a New the Soviet Union. He now lives in Jerusalem. sprout in the Soviet Union, the KGB arrest- America." 24260 EXTENSIONS OF REMARKS September 16, 1987 He stressed that America is undergoing a and paid in the future or our chil­ mass manufacturing growth. Cheap oil and fundamental economic transition which re­ dren". abundant land once powered our growth. quires major investments in our education, Liberal investment banker Felix Rohatyn Today it is knowledge-the skills and adapt­ job-training, and technology commercialization writes that "American fiscal folly, coupled ability of our workers, the brainpower of with the inability to coordinate economic our scientists and engineers, and the liter­ systems. He particularly emphasized the need policies with Europe and Japan, has created acy of our population. to focus our attention on long-term solutions an ever-increasing worldwide pyramid of Abroad, we are increasingly part of a to these problems and on the discipline to ac­ debt that cannot withstand a major reces­ global economy in which our strength de­ complish these focused goals. sion." pends upon allied cooperation and Third Representative LEVINE also rightly noted History will regard with special irony the World development. that the key to changing America's present fact that a Republican Administration that This transition to a global knowledge economic course is ethical and moral, not speaks so much of renewing American economy offers tremendous promise of technical. Quoting Norman Lear's observation strength may have done more to weaken America. We may have lost our former com­ this nation than any Presidency since petitive advantage in cheap resources, and that "the societal disease of our time is Amer­ Calvin Coolidge. To those who doubt this, I ica's obsession with short-term success," Mr. face stiffer competition from the increased ask one simple question: how long can the sophistication and cheaper labor of foreign LEVINE called for a return to an "older ethic world's largest debtor remain the world's competitors. But we possess something far built upon the ties between the generations, greatest power? more important: the world's most innovative and a commitment to those who will follow The answer is self-evident, and I suggest workforce and technology base. America, in us." to you today that it is time to seek an alter­ short, has precisely the knowledge base Mr. Speaker, these insights speak to us in native. needed for success in a knowledge economy. Congress as much as to the American people, It is time to launch new initiatives to re­ If America's future can be bright, howev­ and I hope as many of my colleagues as pos­ build America. Our top national priority er, getting there will not be easy. For any must be to strengthen our economy. With a transition requires disruption and change. sible will find time to read this speech, which I strong economy, we can meet such other na­ insert in the RECORD at this point: There is no single magic policy bullet that tional goals as cleaning up the environment, can save the American economy. If supply­ INVESTING IN A NEW AMERICA ensuring a strong defense and ending pover­ side tax cuts were not the answer, for exam­ INTRODUCTION: THE BEST AND WORST OF TIMES ty. Without a strong economy, we can do ple, neither are tax increases. Instead, we Many of us are confused by today's eco­ none of these things. need to reorient dozens of policies towards nomic news. On the one hand, we are heart­ And the key to a strong economy is to productive investment which, together, will ened by reports that today's 6 percent un­ invest in America. unleash the massive new wave of investment employment rate is the lowest since 1980, We cannot borrow our way to prosperity­ needed to remake the American economy. inflation appears under control, and the both history and logic suggest that no Increasing productive investments is not Dow Jones has passed 2600. We're in the nation can indefinitely go into debt. simply a question of "spending more 57th month of one of the longest recoveries Nor can we become strong at home by en­ money." The sad fact is that much of our of the post-war era, and it was even reported gaging in foreign scapegoating abroad. Yes, present investment is misdirected. Overall last week that the poverty rate had fallen to the Japanese and others have engaged in American spending on education, for exam­ the lowest level since 1980. unfair trade practices. But even if they ple, has risen steadily in the past decade­ But if we are heartened by the good news, ended these practices overnight, it would even as Scholastic Aptitude Test scores most of us are also troubled when we read not have a major impact on our trade defi­ dropped 74 points between 1963 and 1986. that America has become the world's largest cit. We will solve our trade crisis only when Too much education spending has gone into debtor in just the last three years; that we Americans themselves are offered high­ increasing administrative personnel rather today owe some $350 billion to foreigners, quality American cars superior to Hondas, than targeting an increase in the quality and could owe as much as $800 billion by or top-flight video cassette recorders that and quantity of classroom teachers. There 1990; that 31 states have been in a near-re­ are better than Sonys. A strong economy must be a major focus on redirecting exist­ cession, and that hundreds of thousands of must begin at home. ing investment. farmers, energy, auto and steel workers And so does a strong foreign policy. Amer­ At the same time, however, we cannot have lost their jobs and livelihoods; that a ica became a great' military power because delude ourselves that simple redirection of presidential commission reports America of its strong economy-not vice versa. If we investment will solve our problems. America has lost its lead in 7 out of 10 new sectors continue to dissipate our national wealth on must also increase its overall investment like electronics and semiconductors, as well foreign adventures and a nuclear arms race levels if it is to remain a great power. as autos and steel; and that recent trade at the expense of investing in our own eco­ And we must move also beyond the stale deficits mean that Americans have con­ nomic strength at home, we will decline as a debate which sees some Americans focus on sumed $500 billion more goods than they great nation as have all other great powers attacking government and others on attack­ produced during the last 4 years. before us-and for precisely the same rea­ ing business. When America has moved for­ What are we to make of all this? How can sons. ward-whether during World War II, or our we be enjoying such a long recovery while Clearly the time has come to once again post-war success in space, aerospace and ag­ simultaneously piling up debt and losing our invest in ourselves-turning from foreign riculture-government, business and acade­ competitiveness? Can these simultaneously scapegoating to a far more exciting endeav­ mia have joined together to do their respec­ be the best and worst of times? or: seeing our schools unleash the creativity tive jobs better. The issue for the '90s is not The answer, I'm afraid, is yes. Experts of and imagination of our young people and more or less of government or business, but all political persuasions agree that today's once more become a model for the world; better government and business. strong recovery is a result of a borrowing ensuring that we become a nation of life­ The time has come to lift our sights binge threatening serious trouble in the long learners, learning challenging new beyond the debates of the past and instead years ahead. skills and information as frequently as we set a great national goal for the future: this It is as if you or I spent a $50,000 bank change jobs and careers; re-igniting the nation should commit to ensuring that loan on clothing, cars and vacations this "Yankee ingenuity" that has been our na­ America has the world's finest workforce year. We would have enjoyed a dramatic tional pride, as we rebuild our manufactur­ and technology base in the year 2000. A personal "recovery" now. But future years ing prowess and once again experience the comprehensive economic strategy is needed could see our standard of . living drop dra­ satisfaction of knowing that the world is to: (1) boost investment in people; (2) pro­ matically as we were forced to use large por­ turning to products and services that are mote technology commercialization; (3) tions of our salary to meet loan repayments. "Made in America." create an overall climate for investment and As Paul Volcker testified to Congress last The reason why investing in ourselves is entrepreneurialism; and (4) remake the year, "we are living beyond our means. That the key to our future is simple, but pro­ world economy. might be acceptable if we being bom­ market forces to more closely determine con­ surplus water the district is unable to use. The barded . . . six days a week with product proceeds from this sale will be used to reim­ sumers utility rates. themed shows. . . . In the Regulatory Fairness Act, I was joined Children's TV sorely needs innovation, di­ burse farmers for letting land lie fallow. by several members of this subcommittee versity and substance, but unhappily with Mr. Speaker, I join with the Chronicle in from both sides of the aisle including Mr. would be sponsors flooding the airwaves "cheering" the District and EDF in their pio­ MOORHEAD, Mr. SWIFT, Mr. TAUKE, Mr. with tailor made vehicles, there is little neering effort. This innovative, cooperative ap­ LELAND, Mr. OXLEY, Mrs. COLLINS, Mr. NIEL­ room for program producers who might proach illustrates that there is more to water SON, Mr. ECKART, Mr. RICHARDSON, Mr. BOU­ want to sell more shows that make children policy than pouring concrete, opening the CHER, Mr. COOPER, as well as Chairman think and grow up gracefully.... floodgates, and signing away subsidies that MARKEY. And Advertising Age concludes by warning, cost taxpayers billions of dollars and damage the competitiveness of farmers in nonreclama­ We all supported the Regulatory Fairness Those responsible for the building ava­ Act because we want to see the free market lanche of toy licensed TV should get them­ tion areas. help make an economic determination regard­ selves ready for even greater consumer PRICING WATER ing setting utility rates, but today we are deal­ group-and consumer-outcries. Although it The best things in life are free, so the ing with a social responsibility, the free market takes the American public a while to react saying goes. And those words have a strange is a viable theory of economic regulation. But to excesses, reaction is sure to come, and application in California agriculture, which the free market is a bankrupt theory of social many voices will be heard. has enjoyed decades of subsidized water pro­ vided by federal and state water projects. regulation. Today I am adding my voice to that of When the federal government's huge Cen­ Relying on a marketplace of children to de­ Chairman MARKEY'$, Mr. BRYANT, Mr. LELAND, tral Valley Project in California was under­ termine the course of children's programming Mr. SWIFT, and Mrs. COLLINS by introducing taken years ago, a primary objective was to is about as wise as allowing a marketplace of the Children's Television Advertising Practices provide water for irrigation and for domes­ children to determine thei; courses in school. Act which will require the FCC to limit the du­ tic consumption. The water was not treated In fact it could be more dangerous. ration of advertising in children's programs to as a true commodity, priced at what the market would pay, but sold at negotiated The FCC experience with using the free the pre-1984 level of 9 V2 minutes per hour on market to regulate children's television since prices below market value. For years, there weekends and 12 minutes during the week. has been general support for the idea of 1984 has proved ineffective. If the free market Our bill will eliminiate host selling and tie-in providing low-cost water to family farmers. were working in children's television, quality practices, and assure adequate separation be­ · But attitudes toward water pricing policies programs, like quality products, would receive tween content and commercial messages. have changed in recent years for a variety increased consumer support and therefore su­ Mr. Speaker, advertising without govern­ of reasons. The family farm has become an perior ratings. These ratings would determine endangered species. And the cost of energy mental oversight endangers children. Regula­ the commercial success of programs. The in­ to deliver cheap water often prices the ferior programs would be driven from the tion is necessary to balance broadcasters water beyond the reach of farmers. market by dissatisfied consumers. need for revenue with the public interest. Yet In an era of tight government budgets, there has also been a general shift of philos­ But as the Wall Street Journal reported in despite the policy to protect children, the FCC's effort to deregulate and the Justice De­ ophy toward user fees, charging those who May: benefit from a governmental service a fee A glut of programming and declining rat­ partment's abolition of the NAB Code eliminat­ equal to what the service costs. ings is turning the world of animated chil­ ed the mechanism for protection. Our bill will Putting a market-oriented price on agri­ dren's shows into a battlefield. establish that mechanism. I hope my col­ cultural water is a radical concept, not The Journal also reports that while ratings leagues in the House join us in our effort. quickly accepted. It has its strong oppo­ of such programs are down a whopping 20 Once again I thank you for this opportunity, nents, even though it would undoubtedly and I yield back the balance of my time. result in "finding" water that is surplus to percent in the past year, the number of these farming needs and could substantially slow programs for next year has increased by down. if not eliminate, the drive to build nearly 30 percent. The reason for this is that massive new water projects. the free market does not work with a con­ If California combined new market pricing sumer, like the small child, who is incapable of policies for water with effective water con- September 16, 1987 EXTENSIONS OF REMARKS 24263 servation programs, enough surplus water necessary to survive a Civil War, World Wars mothers now working, it is only fair to re­ could be found and sold to ease concern over and 200 years of social change and growth. quire work from those who receive welfare future water supplies. It might also bring an The document, although amended 26 times, benefits, including women with children. end to the savage water wars between has remained remarkably similar in form to its Today the view is that jobs will speed recipi­ Northern and Southern California that ents' reentry into the mainstream of society. have been fixtures of the Sacramento legis­ original conception; yet it has expanded in Under this approach, welfare programs lative scene. ways that the Framers could never have imag­ should offer skills training, remedial educa­ The Legislature, which has just concluded ined in 1787. The words have grown to incor­ tion, job placement programs, day care and its session, witnessed once again a divisive porate a myriad of meanings and ideas. transportation services. battle because Assemblyman Jim Costa of Woodrow Wilson perhaps best captured this Another common theme in welfare reform Fresno and Senator Ruben Ayala of Chino characteristic of the Constitution when he plans is the need to strengthen the family. pushed legislation to divert an unknown, Rising divorce rates and out-of-wedlock but massive, amount of water from North­ said, "the Constitution was not meant to fit us like a straitjacket. In its elasticity lies its chief births contribute substantially to poverty ern California to the Central Valley and and welfare dependency. Three out of four Southern California. The bills had no pro­ greatness." new AFDC cases result from either marital tection for the bay and delta habitats. As we look back this week on the birth of disruption or an out-of-wedlock birth; over While thP, fight over water in the Legisla­ our Government we must remember the true 40 percent of unwed mothers who have a ture received all the media attention, an­ genius that was summoned during that historic child under three when they first receive other important water event was taking summer in Philadelphia. We must remember AFDC remain dependent on it for ten or place out of the limelight. A Kern County more years. Current welfare programs both water district said it had rights to far more the remarkable nature of the document and the destiny that is written into those 2,000 ignore and aggravate the plight of the poor state water than it needed, and it proposed family. For instance, 26 states, including In­ to offer its surplus for sale at market rates. words. diana, currently limit AFDC and Medicaid This almost unprecedented event has sub­ benefits to single-parent households entire­ stantial implications. WELFARE REFORM ly, and the remaining states restrict eligibil­ The Berrenda Mesa Water District of ity so that only a small fraction of all poor, Kern County signed an agreement with the intact families receive AFDC benefits. Some Berkeley office of the Environmental De­ HON. LEE H. HAMILTON evidence suggests that denying support to fense Fund to cooperate in seeking a buyer OF INDIANA two-parent families encourages one parent for some 50,000 acre feet of water to which IN THE HOUSE OF REPRESENTATIVES to leave and may even encourage divorce. the water district is entitled each year from Pro-family welfare reforms include the State Water Project. The water is Wednesday, September 16, 1987 strengthening enforcement of child support enough for the yearly domestic require­ Mr. HAMIL TON. Mr. Speaker, I would like to laws, withholding child support payments ments of more than a quarter of a million directly from wages, providing education people. Berrenda Mesa has surplus water, a insert my Washington Report for Wednesday, September 16, 1987, into the CONGRESSIONAL and counseling to reduce out-of-wedlock spokesman said, because growers of row births, and extending welfare benefits to crops, such as cotton, garlic, onions and po­ RECORD: two-parent families. Welfare programs are tatoes, can not pay the current price of WELFARE REFORM meant to serve children primarily. It helps water, $100 an acre foot, and return a profit. Last year the President and the Congress to think principally about how proposed re­ Proceeds from the sale of the water will be agreed that a simple and effective way to forms impact on children. used to reimburse farmers for promising to help the working poor was to reduce their A third element of consensus is to allow let their lands lie fallow permanently. taxes. This year another important anti­ the states greater discretion and flexibility Putting water up for sale to the highest poverty step is underway. Welfare reform in the way they handle federal welfare bidder is virtually unknown in California, al­ has risen to the top of the national agenda. funds. In the past, state governments have though it is going on elsewhere in the West. Studies have been conducted, states have been criticized because many showed insuf­ In California, the idea is generating major experimented, and now the President and ficient commitment to providing adequate, resistance. The Kern County Water Agency Congress are considering significant non-discriminatory benefits. But criticism is reportedly opposed to the sale of water changes in federal welfare programs. has largely disappeared as the states have entitlement, taking the view that water that The two largest federal cash welfare pro­ proven themselves willing and able to ad­ is in Kern County must not be shipped else­ grams are Aid to Families with Dependent minister welfare. The states have become where. Others resist the idea because the Children

91-059 0-89-40 (Pt. 17) 24268 EXTENSIONS OF REMARKS September 16, 1987 fairs, we want to express our concern about Credit System's best quality loans. The Credit System, supposed beneficiary of the H.R. 3030, the Agricultural Credit Act of Farm Credit System would be left holding bill, of its better loans, thereby compound­ 1987 scheduled for floor action next week. large numbers of substandard loans, de­ ing rather than solving its problems. But The bill will provide relief for the Farm manding continuous, expansive servicing. the argument against it is more fundamen­ Credit System's banks and local lending as­ The secondary market will do little to help tal. Proponents say the secondary market­ sociations, which have reported losses of farmers already burdened with System debt. and federal guarantee-will attract more about $4.8 billion over the past two years. We are supposed to be helping the Farm money into farming at lower interest rates. The measure also provides Federal guaran­ Credit System, not putting a gun to its Sure it will, but where do you stop? Why tees for the more than $4 billion in system head. The banks see lots of fee and trading not a Steely Mac for hurting steel, a Greasy stock held by farmer-borrowers. American income in all this. All the American public Mac for dear old oil, a Threaddie Mae in farmers have suffered severe losses. and will see is more red ink. We oppose this case of need in textiles? Congress should tell they need and deserve assistance from Con­ result and you should too. the banks no on this one. gress. Please join us in supporting an amend­ However, Title III of the bill establishes a ment to delete Title III from the bill. If you THE SECRETARY OF THE TREASURY, secondary market for securitized real estate need more information, or would like to Washington, DC, September 14, 1987. loans. Under the bill, the market would be help, please contact Consuela Washington Hon. JOHN D. DINGELL, exempt from Federal and state securities provisions. help those farmers already burdened with For the past two years, we have strongly debt. It is clear that Congress and the Com­ [From the Washington Post, Aug. 27, 19871 opposed the creation of a federally-backed mittees with jurisdiction-including the FARMER MAC secondary market for agricultural loans be­ Banking Committee and the Committee on cause: <1) it will do little to help farmers, Energy and Commerce-need more time to The farm credit bill that awaits the House particularly struggling ones; (2) the FCS consider the implications of this Title of the on its return contains a provision that was itself already effectively acts as a secondary bill. only put there as a sop to the influential market; <3> the necessary government guar­ Please join us and the leadership of the commercial banks, insurance companies and antees will increase the federal govern­ Energy and Commerce Committee in sup­ others that make farm loans. It transfers ment's exposure to losses of up to several porting an amendment to delete Title III much of the risk in such lending from these billions of dollars each time the agricultural from the bill. private institutions-every one a champion sector falls on hard times; and (4) it serious­ Sincerely, of free enterprise in other contexts-to the ly damages the FCS by giving a government F'ERNAND ST GERMAIN, taxpayer. The government is already too deeply involved in the farm economy as subsidy (in the form of the guarantee) to Chairman. private sector lenders who can then take BRUCE MORRISON, guarantor of price and income. Its addition­ al role as guarantor of credit should be over the System's best borrowers. This loss BARNEY FRANK, of good loan volume would be a problem in CHARLES E. SCHUMER, minimized rather than enlarged. The provi­ sion should be stricken from the bill. itself, and would also increase the System's BRUCE VENTO, cost of lending to its remaining farmer-bor­ MARCY KAPTUR. The bill is meant to bail out the Farm Credit System, a little-known but long-es­ rowers. tablished network of several hundred lend­ Moreover, as former Federal Reserve LOOK OUT FOR "FARMER MAC!" ing institutions that now makes about a Chairman Paul Volcker pointed out last CONGRESS OF THE UNITED STATES, third of U.S. farm loans. So many of the year, while a secondary market could in­ HOUSE OF REPRESENTATIVES, system's loans have gone bad that without a crease the liquidity of lenders, there is Washington, DC, September 10, 1987. federal infusion it will apparently have to ample credit available at this time. There DEAR COLLEAGUE: Next week the House default on its bonds. But the banks and simply is a short supply of creditworthy will be asked to consider H.R. 3030, the Ag­ other lenders that compete with the system lending opportunities. ricultural Credit Act of 1987. It contains a have also suffered grievous farm losses, and The FmHA provisions, through overly le­ badly flawed provision. their argument is that if Congress helps the nient loan restructuring and "borrower That bill creates a bailout package of fi­ system it should help them too. rights" requirements, are expected to in­ nancial assistance to shore up the Farm The bill would do that by creating a sec­ crease the FmHA's cost by up to $900 mil­ Credit System's 37 banks and 387 local lend­ ondary market for all farm loans