July 22, 1985 EXTENSIONS OF REMARKS 19921 EXTENSIONS OF REMARKS HEALTH-CARE INDUSTRY TAKES Mr. Speaker, as one who is very fond At the Pru, MacNaughton is credited for THE SPOTLIGHT of the entire Rodino family, it is a much of the early progress of PruCare, a great pleasure for me to insert this ar subsidiary that runs a network of HMO's and units in the far-flung health care HON. ROBERT G. TORRICEW ticle into the RECORD to share with my system of the company. Headquartered in OF NEW JERSEY colleagues. Roseland, PruCare's chief executive is Sam IN THE HOUSE OF REPRESENTATIVES HEALTH-CARE INDUSTRY TAKES THE SPOTLIGHT Havens who at 38 four years ago became its • This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. 19922 EXTENSIONS OF REMARKS July 22, 1985 "Cost containment is working for many IF ONLY LIVE AID CAN GET When an American rock fan shells out $35 reasons. The new prospective pricing system THROUGH for Live Aid, what assurances does that under Medicare provides new incentives to person have that the Ethiopian dictatorship control costs. Employers active in health will actually use donated supplies to feed care coalition and preferred provider organi HON. NEWT GINGRICH hungry people? None. zations are getting cost-saving re OF GEORGIA There are many aspects of this problem. sults for their companies." IN THE HOUSE OF REPRESENTATIVES Kurt Jansson, deputy secretary general of New Jersey's Gov. Thomas Kean went a Monday, July 22, 1985 the United Nations, recently called for a stage on the subject a month ago keynoting pause in the donation of emergency supplies the Middle Atlantic Health Congress con • Mr. GINGRICH. Mr. Speaker, in from the West. He noted that the Ethiopian vention in Atlantic City. the following article, our colleague regime has been allowing hundreds of thou The Garden State's popular chief execu TOBY ROTH brings to all of our atten sands of tens of grain and other supplies to tive called for a regional approach rather tion the very real crisis of an Ethiopi pile up at the docks while diverting trucks than an intra-sta.te route for the realization an Government willing to starve its to smashing dissidents or moving Ethiopians of aims in the structuring of preventive own people to death to retain power. out of conflict areas so as to prevent them quality health-care system. More than any other Member of from joining opponents of the dictatorship. Observed Kean before thousands attend Congress, Congressman RoTH has M. Peter McPherson, administrator of the ing the convention: "The climate in this come to understand the real evils of U.S. Agency for International Development, country has changed ... the watchword no the Mengistu regime. And he's worked has confirmed Jansson's dismal discovery. longer is treatment; it is now prevention." systematically to bring the problems According to him, the Ethiopian regime is The promise of HMO, according to Cross of a vicious and despotic Ethiopian not serious about moving food and other roads' I AmeriCare's Peter Rodino, is that, Government to the attention of the supplies from the ports or out of the garri among other plusses, such health mainte American people. son towns inland that are used to feed only nance programs "provide the cure for costly I commend this Philadelphia Inquir certified friends of Mengistu. health care rather than depending on crisis er article to everyone concerned about A growing concern on Capitol Hill is that oriented treatment. the plight of the starving people in the United States is allowing itself to be ma "Initially, HMOs give people a choice in nipulated by the Ethiopian government. In Ethiopia. the last few years, policy-makers have been the health care system they may use," he IF ONLY LIVE AID CAN GET THROUGH points out. "Additionally, HMOs represent a well aware of the intentional policy of Men reform of the health-care system to bring gistu of quell internal dissent through en out greater efficiency." Today an estimated 90,000 rock music fans forced hunger. will be in Philadelphia. Each will have paid We have responded by trying to seduce "It is," submits Rodino, "a health care al at least $35 to attend a fund-raising concert ternative worthy of investigation by both him through additional trade, aid, and other sponsored by a group called Live Aid. All of benefits. He has responded by buying planes employer and employe." the participants and most of those promot Even as the Prudential pioneered health for the government airline and even selling ing the event can be assumed to have the donated food on the open market. care programs on a national scale, Cross best of motives: to provide assistance to the roads launched its activities in Essex hungry of Africa by using the names and I believe strong measures are needed to let County nearly a decade ago and it's the only talents of many performing artists to at the American people, including patrons of survivor of three such enterprises begun tract large crowds and funds that can be Live Aid, know the vile intentions of the here. Rodino "came aboard" in 1979 as a di turned into emergency relief. Ethiopian dicta.tor and to assure that the rector, soon would become CrossRoads' What most of those attending Live Aid United States takes concrete steps to assure chairman. don't realize is that there is a good chance that Western generosity is not perverted ac Not unlike the Pru, it encountered grow that the funds raised to feed the starving tually to assist in the starvation of millions ing pains and financial challenge and pro will not get to the people of Ethiopia. In in Ethiopia. fessional medical and later some organized stead, the money may continue to be used to Representative Henry J. Hyde • and his priorities are well-positioned.• supplies to relieve the hunger of all of its people. July 22, 1985 EXTENSIONS OF REMARKS 19923 A TRIBUTE TO DONALD INTRODUCTION OF NEW Deferred annuities would begin when the TORRF.sON LEGISLATION applications are received, rather than at age 62, if the individuals chose to delay filing their applications. This change is needed be HON. JOHN EDWARD PORTER HON. DAN BURTON cause it would be unreasonable to continue OF INDIANA OF ILLINOIS to require deferred annuities to begin at age IN THE HOUSE OF REPRESENTATIVES 62 while penalizing deferred annuitants for IN THE HOUSE OF REPRESENTATIVES drawing benefits before age 65. Monday, July 22, 1985 Monday, July 22, 1985 SERVICE CREDIT FOR UNUSED SICK LEA VE e Mr. BURTON of Indiana. Mr. Currently, sick leave remaining to an em e Mr. PORTER. Mr. Speaker, I would Speaker, today I am introducing by re ployee's credit at the time of retirement is like to take this time to recognize an quest of the President a bill to reform counted as additional service to be used in outstanding educator and administra the civil service retirement system. An computing the employee's annuity. This ex tor who is retiring after 10 years as su explanation of this administration leg pensive and unwarranted benefit would be perintendent of Waukegan Unit islation is contained in their statement phased out over a four-year period. School District 60 and 37 years as an of purpose and justification. I would LIMIT ON COST-OF-LIVING ADJUSTMENTS educator. I submit the letter I recently like to include that for the RECORD. Under 5 U.S.C. 8340, an annual cost-of Here follows the statement: living adjustment is effective on sent Don Torreson documenting his December 1 of each year intro duced at the beginning of this Con Monday, July 22, 1985 ment and performance standards pro gram to improve operations and the gress by Mr. STUMP, the ranking e Mr. MONTGOMERY. Mr. Speaker, quality of service of the VA. member of the House Permanent this Nation recently lost a truly great As a member of the Committee on Select Committee on Intelligence, con American, William J. "Bill" Driver, Veterans' Affairs, I had the privilege tains a number of provisions that de- July 22, 1985 EXTENSIONS OF REMARKS 19925 serve our immediate consideration in A case in point is the Intelligence Identi In my opinion, such a titillating disclosure light of recent events. ties Protection Act that Congress passed a violates the spirit, if not the letter, of the For purposes of this discussion, I couple of years ago. What triggered this Identities Protection Act. would like to focus on title VIII of this nobly intended-but ineffective-initiative CounterSpy. Subsequently, in a near trage These actions point up that, from an intel envisioned at the time of enactment. dy, the homes of the U.S. Embassy's first ligence standpoint, the random or isolated To some extent, this is because some secretary in Jamaica and an AID employe disclosure by an individual journalist can be of the statute's original teeth were were fired upon shortly after the American just as deleterious as the wholesale revela pulled as it worked its way through editor of Covert Action Information Bulle tions that used to be featured in the Covert the legislative process. tin claimed in a press conference that those Action Information Bulletin. U.S. officials and 13 other Americans, as Title VIII of Mr. STUMP'S bill recog In fairness to the Washington Post, it nizes this problem as it mandates the well as Jamaicans, were associated with the CIA. must be mentioned that it is not alone in al termination of Federal annuity bene In this instance, not only were the names lowing the publication of reports with dam fits of any Government employee con of these individuals revealed, but also their aging revelations regarding those under victed of disclosing the identity of U.S. home addresses, telephone and auto license cover. As Jay Peterzell indicates in the undercover intelligence personnel. In numbers. Fortunately, the American offi May/June 1984 edition of First Principles: addition, it also permits wiretaps in cials and families involved in this attack sur National Security and Civil Liberties, such probes relating to the exposure of vived unscathed. It was a close call, howev prestigious and reputable news organs as clandestine operatives. er, as two of the bullets penetrated the bed the New York Times and the Wall Street Before going any further, I want to room window of one of the children who Journal have also published-since the pas make it crystal clear that I believe was providentially away at the time. Against sage of the identities protection legisla that the overwhelming majority of our this compelling backdrop, Congress finally tion-similar stories in the apparent belief Government employees, as well as attempted to remedy a situation that was that they would not be "exposed to the seriously undermining human intelligence prosecution under the Identities Act as now Federal annuitants, are very conscien collection efforts around the world. tious and patriotic citizens. They are, Lamentably, the legislation that eventual interpreted, even though many of these dis moreover, just as disturbed as I am ly emerged was so watered down that it has closures appear to have embarrassed the about these unauthorized revelations not really accomplished its objective of de U.S. government or to have interfered with which are so damaging to our national terring the exposure of undercover intelli ongoing intelligence activities." gence personnel. Elsewhere in the same article, Peterzell in security. I am confident, therefore, After considerable debate, Congress deter sightfully observes that "perhaps the most that they would be among the first to mined that for a non-government individual significant effect of the conference report applaud this remedial legislative pro to be convicted under this legislation, the on the legislation ls to resolve the doubts of posal. government would have to prove that such a reporters and others about the intended As Members will note, this Stump person had engaged in "a pattern of activi scope of the identities act. Lawyers for the initiative is potentially very relevant ties intended to identify and expose covert Washington Post and the Christian Science to the spy case involving a CIA em agents and with reason to believe that such Monitor said the report had convinced them ployee, Ms. Sharon M. Scranage, who activities would impair or impede the intelli gence activities of the United States." the Act is not meant to apply to reporters has been charged with committing es Clearly not covered by this legislative pro who identify an agent in the context of a pionage with a Ohanian national, Mr. vision would be those journalists who, news story." Michel Agbotui Soussoudis. during the course of a story, casually men In sum, the Intelligence Identities Protec Among other things, the criminal tion the name of a covert intelligence opera tion Act has turned out to be largely sym complaint affidavits filed by the FBI tive. Particularly instructive in this regard is bolic legislation. state that Ms. Scranage provided Mr. the conference report to the Indentities I will concede that it does appear to have Soussoudis handwritten lists contain Protection Act which offers the following caused the Covert Action Information Bul ing the true names of individuals who interpretation: letin to stop publishing its "Naming Names" were cooperating covertly with the "A journalist writing stories about the column, but even this notorious journal has CIA would not be engaged in the requisite dared to reveal occasionally the identity of CIA, and that Ms. Scranage met with 'pattern of activities,' even if the stories he Mr. Soussoudis and two Ohanian wrote included the names of one or more individuals within the context of a story. agents and discussed CIA assets and covert agents, unless the government proved Again, Peterzell ls informative as he sources in Ghana and other locations. that there was an intent to identify and points out that the Bulletin's editor, Louis Most certainly, I do not want to pre expose agents. To meet the standard of the Wolf, has stated that "on several occasions, judge this case or comment on the bill, a discloser must be ell&'aaed in a pur we have published articles that discuss CIA FBI's allegations. I cite it, however, as poseful enterprise of revealill&' identities activities and identified people when it was he must, in short, be in the business of important to the story. We got legal advice an illustration of the kind of conduct 'naming names.' " and went ahead.'' title VIII is designed to address. Armed with this congressional analysis Mr. Speaker, in conclusion, I would Short of remedial legislation, my only and and legislative history, many Journalists fervent hope, therefore, ls that responsible, like to call to my colleagues' attention have no qualms about dropping the name of professional journalists will emulate the a pertinent op-ed I wrote on the defi an undercover agent in order to make a recent example of the Christian Science ciencies of the identities protection story a little "sexier" or seemingly more Monitor which decided, according to Peter law that appeared in Human Events credible. For example, the Washill&'ton Post zell, not to reveal a name "for moral rather last year. ran an article by correspondent John Lanti gua in an early July 1984 edition that issus than legal reasons.'' INTELLIGENCE IDENTITIES ACT: WORDS, No trates my point. This ls indeed a transcendant reason and TEETH The thrust of the story concerned an such restraint could literally mean the dif fore, anyone who opposes it must be against Soviet authorities had previously It is a pleasure for me to join the illustri humanity. Foreign private direct investment threatened to have Yana raped and ous group here in the discussion of the con becomes "economic imperialism" in the disfigured if she did not cease these ference theme: "Basic Freedoms in Latin Marxist-Leninist lexicon, and this economic activities. America: Their Past, Present and Future imperialism opposes a "new international Prospects." The fact that this historic con economic order" which calls for redistribu An enormous effort on the part of ference is treating both the political and tion of the world's wealth. In the Marxist Westerners concerned about Josef economic aspects of Latin America's situa lexicon, we are in a zero-sum game where, if Berenshtein has succeeded in getting tion is indicative of what Secretary of State one group is to attain greater wealth , easing the way with bribes. According to a amounted to about 20%-double U.S. real for example, estimated that, in Argentina, Wall Street Journal article: interest rates-and he has ascribed these de government transfers to cover public enter It took a lawyer and three others 301 days velopments to a lack of confidence. prises' losses were proportionately 10 times of full-time work. Dealing with 11 govern Henry C. Wallich, member of the Board of as inflationary as the financing of private ment agencies to complete the paperwork Governors of the U.S. Federal Reserve enterprises' losses through commercial bank which, when laid end-to-end, measured 102 System, in a recent incisive paper entitled, borrowings, primarily because it is assumed feet. For the Cworld'sl eight largest Cnon-U.S.l through central bank financing of the gov borrowers over the years 1974-1982 ... ernment deficit. Because the state in Argen 2. THE PROBLEM OF VAST CAPITAL NEEDS Latin America needs vast amounts of cap calculation show an increase in debt tina owns the vast majority of its industrial . The av erage cost for creating one new job in the inflow was compensated by outflows; for Gray, and R.P. Short: Mexico, 45 percent; for Venezuela, almost For 25 developing countries for which region is estimated at $12,500, leading to an data were available, Short estimates the av approximation that $1.25 trillion in capital the entire inflow was absorbed into out erage overall public def will have to be generated in the next 15 flows. icit, before reduction by government current years-a figure perhaps twice the amount of This trend has to be reversed if Latin transfers, at 5.5 percent of GDP during the all transfers of funds to the hemisphere in America is to grow at all. mid-1970s. He further estimates that the the past 15 years, which includes the huge 4. THE SOLUTION 01' DIRECT INVESTMENT overall deficit in developing countries in borrowing splurge of the 1970s. Borrowing is only one of the three types creased by 2.5 percentage points of GDP be For Latin America, if the decade of the of international monetary transfers-the tween the late 1960s and mid-1970s. 1960s can be considered as the decade of of other two being direct aid, either govern Defining the "budgetary burden" of ficial aid from the developed countries (in ment-to-government or multilateral, and public enterprises as the residual of govern cluding the Alliance for Progress> and the foreign direct investment. It is obvious to all ment transfers and loans, less loan service decade of the 1970s as the decade of com that foreign direct investment, if it can be payments by the enterprises. Short esti mercial bank lending , gotten, has the advantage over the other mates this burden to average 3.3 percent of then the decade of the 1980s must be the two of providing management knowhow, GDP for 34 developing countries, compared decade of foreign direct investment. Why? technical skills, and technology transfers re with a 4.4 percent estimate for the central Because, regarding future prospects for offi sulting in a high degree of export potential government's overall budget deficit in these cial aid, it would be prudent not to expect and, therefore, of being a source for valua countries. In other words, public enterprises that support via the International Mone ble foreign exchange. Foreign direct invest accounted for three-fourths of the central tary Fund, the World Bank, and other mul ment has the advantage of not requiring government deficit in the countries in ques tilateral lending institutions will be a re fixed interest payments. Earnings are repa tion. placement for private sector lending-and I triated onl11 if the investment is profitable. In spite of these trends, which amount to stress the word replacement-for a number Local enterprises are able to sell to multina a fight for survival on the part of free enter of reasons. tional companies and often gain access to prise in many parts of Latin America, there First, the sums needed are simply too new markets and distribution channels, are several countertrends. A good example large. both nationally and internationally. Finally, of how the private sector can triumph in Second, virtually all industrialized coun and most importantly, foreign direct invest spite of governmental restrictions is re try governments, including that of the ment creates real jobs as opposed to state vealed in the study by Peruvian business United States, are grappling with the issue funded make-work Jobs. man and economist Hernando de Soto. Be of controlling their own government defi In order to attract this scarce and needed cause it takes a person 6 months to get gov cits. capital-in competition with other countries ernment approval to set up a simple busi Third, it is unlikely that industrialized also aggressively seeking it, such as mem ness in Peru, an informal economic system country central banks will be as accommo bers of the OECD and the Pacific Basin has grown to rival the more traditional busi dating toward these deficits as they were in countries-the climate for investment must ness. According to de Soto, an informal the 1970s. be much more conducive in Latin America. economy developed and grew despite the Further, it is now widely recognized that The best test of this is found where local in tremendous handicap of being illegal. Latin America will not receive even remote vestors themselves find it attractive to rein De Soto's study estimates that the infor ly the same high level of borrowed capital vest their own funds and where there is no mal economy of Peru now accounts for 90% from the banking systems to which it capital flight. of Lima's garment industry, 25% of its furni became accustomed during the 1970s, par ture industry, 60% of housing construction, 5. THE SOLUTION OF EXPANDED CAPITAL and even a good part of the automobile and ticularly in light of debt servicing problems OWNERSHIP truck industries. The informal Peruvian on existing loans. While it is relatively easy to diagnose the economy, say the study, has grown so fast 3. THE PROBLEM 01' CAPITAL PLIGHT ills resulting from excessive governmental that it now accounts for an estimated 60% Just at the time when Latin America involvement in our economies, it is far more of the total Peruvian economy, and almost needs so much more new capital, there has difficult to find constructive solutions. none of this output is counted in the official been the reverse trend of hemorrhaging Clearly, with a change in domestic policies $22 billion Peruvian gross domestic product. capital outflows through flight capital. away from the parastatal-import substitu Perhaps most important is the free enter The irony of this situation is that, in fact, tion approach to economic development, prise system's ability to create jobs: in Peru, Latin Americans own plenty of capital. It is there is reason to believe that money could an estimated two out of every three jobs are just not located inside Latin America-the be attracted back to Latin America, which now in the informal sector. amounts in Swiss and Miami banks and in would, of course, be a major contribution to Another factor Mr. de Soto's study points San Diego condominiums probably far a lasting solution of the debt crisis and job out is the South American economies often exceed the liquid funds in the home coun- creation. 19928 EXTENSIONS OF REMARKS July 22, 1985 Unfortunately, in many countries of our free enterprise system than a worker laying celebrate its 20th annual Duryea Day. hemisphere, the state-owned sector is so down his life to defend the company in The people of this community are large, relative to the domestically owned which he is co-owner. pool of private capital, that a simple sale of If we want to prevent further Nicaraguas proud to honor Charles Duryea, Amer those state enterprises that are running the or El Salvadors, the American Government ica's first successful producer of the largest deficits would be difficult , and attracting social Justice in Central America. Promoting Charles Duryea was born on Decem foreign capital for this purpose also would broad capital ownership as an alternative to ber 15, 1861, near Canton, IL. He was be difficult, for well-known political reasons. Marxist philosophy in Latin America, if educated at Gittings Seminary at La Indeed, there are still many in Latin Amer they are actively pushed now as foreign Harpe, IL, and, following graduation, ica who would view selling off parastatals to policy objectives, can go a long way in giving entered the bicycle trade. During his "transnationals" in the same way as they people a vested interest in protecting the career, he achieved success as both a view foreign direct investment-selling off free-enterprise system. their "national patrimony.'' There have Norman Kurland, one of the founders of businessman and an inventor. been ideas floated that some debt could be the Center for Economic and Social Justice Duryea was endowed with a creative exchanged for equity in the parastatals. stated in a began his career designing several de have given up on the idea, at least for the Wa&hington Times interview last Septem vices for bicycles. Later, after the gas present. ber. oline engine was invented, Duryea However, I believe that there are other To win over Marxism-Leninism you have became interested in the possibility of potential and feasible solutions over the to go beyond the military. Of course, you applying it to the automobile. In 1893, long term, for, President Reagan has said, have to be militarily strong. On the other "Developing countries need to be encour hand, there is an ideological battle. Marx with the help of his brother, Charles aged to experiment with the growing varie and Engels stated that you could sum up completed the first successful Ameri ty of arrangements for profit-sharing and the entire philosophy of communism in a can automobile. The excellence of the expanded capital ownership that can bring single sentence: Abolish private property. vehicle was proven many times in the economic betterment to their people.'' One The entire case of Marxism-Leninism dis years following when it bested a such method of expanded capital ownership appears if we prove to the world that pri number of European entries in road is advocated by Dr. Louis 0. Kelso and Pa vate property is essential for providing eco nomic and social Justice, and for providing races and other contests. tricia Hetter in their book. La Economia de In los Dos Factores; Un Tercer Camino. The human dignity to people in the Third addition to his success as an in plan involves employee stock ownership World. ventor, Duryea's other accomplish plans, which are nothing less than having Marx was wrong. However, we cannot ments include serving as president of the employees of the corporation also simply attack him on the basis of the prob the American Motor League and be become the stockholders, i.e., owners. There lems he was focusing on but rather on the coming chief stockholder in the are now approximately 8,000 corporations in basis of the means that he would use. The Duryea Motor Wagon Co. In 1898, the United States using these plans, and the solution is not to make enemies of the after leaving his automobile company, experience with them has been quite good owners but to make owners out of the non he established the Duryea Power Co. productivity goes up, worker income is owners. in Reading, PA, and manufactured a linked to profitability, etc. While they are CONCLUSION three-cylinder car until 1914. Follow only one form of expanded capital owner I title my remarks today, "Free Enter ship, the point I am trying to make is that prise: Key to Latin American Economic Re ing this, Charles engaged mostly in ad there are alternatives to state ownership, vival.'' I would like to end on a positive note. visory work and writing as an author and they should be explored and adapted to Muhammad Ibn Khaldoun, the 14th cen ity on the automobile. the conditions existing in each of the coun tury Arab Jurist, historian, and statesman Today, Charles Duryea is honored tries of our hemisphere. Indeed, Costa Rica once wrote: for his contributions as both an inven and Guatemala have rapidly increasing em "When incentive to acquire and obtain tor and an outstanding member of the ployee stock ownership plans. property is gone, people no longer make ef community. In addition to his remark But the benefits of expanded capital own forts to acquire any. This leads to destruc able inventions, he was active in ership go far beyond the economic, as has tion and ruin of civilization. recently been demonstrated in the La Peria Similar wisdom can be found in the words causes such as the League of Nations, project in Guatemala. La Peria is a 9,000- of Simon Bolivar who said 150 years ago the index dollar, and prohibition. He acre coffee and cardamom plantation in that Bolivia was a beggar sitting on a throne has figured prominently in the herit northern Guatemala. It has 500 full-time of gold. In an expanded sense, this is still age of Berks County, PA, and the employees, about 1,500 family members, and true for resource-rich but extremely poor Nation. approximately 4,000 other people dependent Bolivia and for several other countries in Boyertown, PA's festival on August on the economy of the estate. In September Latin America. The hemisphere is so rich in 31, 1985, will commemorate the 1984, the farm's owners set up a trust to natural resources and populated by men and achievements of Charles Duryea. The which they allocated 40% of the stock. The women of such talent and good will that stock will be paid for out of the future prof there is no reason that our hemisphere day's events will include displays of its of the farm, but upon the signing, full cannot have a bright economic future. All antique and classic vehicles, flea mar voting rights were passed through to an em that Is needed Is for the economic and polit kets, and other fun-spirited activities ployee association. ical leadership of Latin America to reem for all to enjoy. The cosponsors, the Early this year, 120 insurgents attacked brace the wisdom of their own founding fa Boyertown Museum of Historic Vehi the estate and actually took control of the thers. Simon Bolivar and San Martin. These cles and the Concerned Citizens of center. The insurgents, however, were then men of vision, along with our own Founding attacked and driven off the farm by 200 Earl Township, are to be commended Fathers, were swept up with the liberalizing on their efforts to make the 20th armed workers, and a number of workers writings of Locke, Rousseau, Hume, and and insurgents were killed. In the week fol Adam Smith, which called for a separation annual celebration of Duryea Day a lowing the attack, the estate's 300 unarmed of political and economic power and empha success. I am sure all of my colleagues worker-owners petitioned the owners for ad sized the sanclty of private property.e will join me in hoping the event is a ditional rifles to defend against future in joyful occasion for all.e surgent attacks and volunteered to help pay for them through a payroll deduction plan. TWENTIETH ANNUAL DURYEA As Joseph Recinos , has HON. GUS YATRON HON. RICHARD RAY stated: OJ' PENNSYLVANIA 01' GEORGIA We can more clearly see what the true IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES message of ownership and of vested interest in the free enterprise system means in view Monday, July 22, 1985 Monday, July 22, 1985 ing the La Peria model. There is no greater •Mr. YATRON. Mr. Speaker, on •Mr. RAY. Mr. Speaker, I am on significance to the concept of defending the August 31, 1985, Boyertown, PA, will record as being against the proposed July 22, 1985 EXTENSIONS OF REMARKS 19929 National Employment Priorities Act, would create new jobs. On top of this, fewer jobs no matter what legislation which is commonly called plant clos the Federal Government is directed to we enact to protect the existing jobs. ing legislation. I stand by that view be make similar payments if the business I am working toward this solution by cause generally I do not believe in ex is unable and is also directed to make voting in a common sense, bipartisan cessive government intervention in the funding assistance available for busi manner. I am considering the strength affairs of business, especially when nesses undergoing "change in oper of business, and thus the availability there are already laws protecting the ations" as well as the locales in which and security of jobs, in every vote I work force from antiunion feeling in the business conducted operations. will make-from the budget to legisla business decisions regarding where to PENALTIES tion dealing with tax reform. I intend locate and how to allocate capital. But There are already laws which pro to continue in this manner because I I do think it is necessary to provide a tect against a management decision to believe this is the way to best repre justification for that stance. move its plant to escape a union issued a new five-year discharge have here are chronic violators of the law the ocean. In at least three other permit that officials have described as the going on their merry way." court actions, judges have found com most stringent and complex ever issued by State officials, however, defend the regu panies liable for such violations, al the agency. But that failed to mute criti latory program. DEP Commissioner Robert cism from local officials who labeled the E. Hughey told the Legislature's Joint Ap though the trials to determine the permit a license to pollute. It also focused propriations Committee that the backlog of penalties have not yet been held. attention once again on a program that has expired municipal and industrial permits These private citizen suits are wel long been a target to criticism. would be eliminated by September. Beyond comed by the State department of en The program is designed to monitor and eliminating the backlog, Hughey said the vironmental protection CDEPl because enforce thousands of permits granted to in department has stressed upgrading permit the agency has a back.log of cases to dustry, municipalities and utilities that dis conditions with emphasis on strict compli handle. A spokesman for the DEP charge pollutants and treated waste water ance schedules and control of toxic dis termed PIRG's actions as complemen into waterways. It is considered a key tool in charges. efforts to make the state's waters "fishable The department also has hired additional tary to State enforcement. Many of and swimmable," as the federal Clean is staff to conduct inspections and administer those involved agree that it impor Water Act envisioned back in 1972. appropriate enforcement actions, Hughey tant that damages be assessed against Last year, the DEP and the Legislature said. violators of permit conditions because sparred over long backlogs in the reissuance John Gaston, director of DEP's Division companies will not stop polluting of five-year discharge permits that had ex of Water Resources, said the agency's main unless they have an economic interest pired, both for industry and municipal emphasis is to issue the most stringent per in doing so. sources. The backlog also was partly respon mits possible. "It is important that we The record in New Jersey demon sible for a warning issued by the federal target our actions to getting broader compli strates that citizen suits can be an ef government last November to New Jersey ance and to focus on those facilities with and 19 other states to beef up enforcement the most significant problems,'' he said. fective, efficient mechanism in stop efforts in the program. And, in recent ping and deterring toxic pollution. Cit months, opposition to Ciba-Geigy's toxic The Ciba-Geigy permit is one such in izen suits have proven to be comple mil stance, said Gaston, terming it a "state-of discharges led to demonstrations by the the-art permit that will have a dramatic mentary to State enforcement actions itant environmental group Greenpeace. effect on water quality along the Shore." and they have not drained resources The PIRG's lawsuits predate much of the Ciba-Geigy, he added, could have complied from the DEP as critics of citizen suits current controversy. They were filed at a time when the federal government held au with its past permit, issued by the federal have suggested would be the case; thority over pollution discharge permits. In government, but it was the wrong permit be rather, citizen suits have enhanced the 1982, when the state assumed control over cause it failed to address the toxic compo enforcement proceedings and have re the program, called the New Jersey Pollu nent of the pollution discharge. sulted in a cleaner environment for ev tion Discharge Elimination System, some Lloyd, however, said it is important that eryone. environmentalists welcomed the change, companies that violate their permits be hit I commend this excellent article to saying federal authorities had repeatedly ig with economic penalties. "One of the rea my colleagues and urge them to sup nored violations. sons we want damages assessed against "We have some very good environmental permit holders is that the companies are sit port amendments allowing citizen ting back and awaiting action by DEP,'' he suits in Superfund. laws in this state-if they are being en forced,'' Lloyd said. " If not, it doesn't mean said. "The waterways of New Jersey are not CFrom the Newark Star-Ledger, June 9, anything." going to be cleared up unless the companies 1985] The group brought the lawsuits after ex have an economic interest in doing so." PRIVATE GROUPS SPUR WASTE ENFORCEMENT pressing frustration over the federal Envi Ciba-Geigy was fined $250,000 for violat ronmental Protection Agency's en ing its permit, Gaston said. But he added The state's largest utility had to pay forcement program. The federal Clean that industry already has tremendous incen $100,000 for repeated violations of a permit Water Act includes a provision that allows tive to remove toxics from pollution dis to discharge wastes into New Jersey's water private citizens and group to bring suits charges. "The overriding atmosphere, par ways. What was unusual about the penalty against industry for violating discharge per ticularly among the largest companies, is is that it resulted from an enforcement mits. that waste is a significant financial liabil action initiated by a public interest group In the settlement, PSE&G agreed to pay ity,'' he said, referring to damages that and not the state or federal government. $40,000 to the U.S. Treasury, contribute could be assessed against a company for The settlement reached between Public $15,900 to the Cook College Oyster Lab of toxic discharges. Service Electric & Gas Co. and Rutgers University and another $15,900 to Perhaps the larger issue concerns the the New Jersey Public Interest Research the New Jersey Conservation Foundation hundreds of sewage-treatment plants that Group and the Friends of the Earth urban parks project. The remainder will be regularly spew inadequately treated sewage is the first of 15 court actions to be conclud used to pay attorney fees for the plaintiffs. into waterways. ed. They were brought against industry for The violations cited against the utility, "We still have a pattern of industry doing violating permits to discharge pollutants numbering more than 900, involved non-nu a better job of complying with permits than into waterways and the ocean. clear discharges from PSE&G's Salem municipal dischargers," Gaston said. The out-of-court settlement did not at plant. The settlement noted that PSE&G With a backlog of 280 municipal and tract the publicity drawn to a $1.45 million was in the process of installing improved county projects awaiting funding to upgrade fine imposed by the state last month against water treatment facilities under an agree treatment facilities, state officials have re a South Jersey manufacturer, but it once ment with EPA and DEP. peatedly warned that as many as 130 com again raised questions about the state's Carl Sulzberger, assistant general counsel munities face bans on development unless effort to control and regulate discharges for PSE&G, said the violations, most of they make efforts to comply with tougher into New Jersey's waters. which involved exceeding temperature pa permit conditions. In recent months, many of those concerns rameters, were technical in nature. "There For the first time, the state this year focused on the Ciba-Geigy Corp. of Toms was no damage to the environment as a plans to require about 40 municipal dis River, the source of a controversy in Ocean result of the discharges," he said. chargers to perform sophisticated biological County over the company's ocean outfall Lloyd still expresses frustration over en tests that measure susceptibility of fish to pipe, which discharges 4 million gallons of forcement policies, but now pins the blame acute doses of toxic compounds in the waste industrial wastes daily into the Atlantic on the state. "The only thing we're doing is stream, Gaston said. Previously, only indus Ocean. In April, the state levied the largest enforcing the standards that have been set trial dischargers have been required to per- July 22, 1985 EXTENSIONS OF REMARKS 19931 form the sampling, known as the bioassay president and chief operations officer SYNTHETIC FUELS AND GREAT test, Gaston said. of the company in January 1969 and PLAINS In response to queries from PIRO and other environmental organizations, the de chief executive officer in 1976. Hank ps.rtment is putting together an informa was named chairman and CEO in 1983. HON. JOHN P. MURTHA tional package on its permit enforcement During the period that Hank has 01' PENNSYLVANIA program, including administrative orders, been CEO of Transamerica Airlines, IN THE HOUSE OF REPRESENTATIVES fines and other actions taken against permit the company has posted new sales and violators. Gaston said last year's data still Monday, July 22, 1985 are not available. In the previous two years, earnings records yearly during the most turbulent years of the airline in • Mr. MURTHA. Mr. Speaker, the fol the agency brought 803 and 718 administra lowing is the Synthetic Fuels Corpora tive actions against violators. dustry following industry deregulation "Our system is not predicated on fines," in 1978. He has also moved the compa tion's response to my inquiry concern Gaston said. "It is predicated on enforce ing their decision on the Great Plains ny into scheduled service for the first project: ment." time with flights to Amsterdam, Ire In most cases, he said, violations are cor U.S. SYNTHETIC F'uELs CORPORATION, rected by simply issuing a letter to the land, and Tel Aviv; expanded and re Wa&hinoton, DC, July 22, 1985. permit-holder. equipped a substantial part of its fleet Hon. JOHN P. MURTHA, "The real question is what makes people to meet more stringent U.S. noise Washington, DC. move. Sometimes a sewer ban will do it, abatement rules; and successfully inte DEAR JACK: Thank you for your inquiry re sometimes a state enforcement action and grated Saturn Airways into the compa garding the proposed Great Plains assist sometimes a federal court case," Gaston ny. ance agreement. said. "We've got examples of all three." As you know, in 1982 the U.S. Department Meanwhile, the public interest group is But Hank Huff has not expended all of Energy entered into a contract with pressing its own court cases-actions that of his efforts on the passenger field. Great Plains giving them a $2.02 billion loan Gaston terms complementary to the state He strongly believes that cargo will be guarantee with the U.S. Federal Financing enforcement. playing an increasingly important role Bank. Thus far, Great Plains has borrowed PIRO has rached a tentative settlement in the air transportation mix. Under $1.5 billion from the government. with another of the companies it has Because of the project's current pessimis brought to court, Lloyd noted. The tentative his leadership, Transamerica has tic economic projections, Great Plains ap settlement with Southland Chemical Corp. become the largest charter cargo air plied for assistance from the Synthet!c in Great Meadows in Warren County is line in the world. The company has a Fuels Corporation in the form of price guar before a federal District Court judge await number of firsts in cargo: Cargo antees. At the SFC Board Meeting on July ing approval. It calls for the company to pay flights on a DC-10; the development 16, we approved an agreement in principle the U.S. Treasury a $100,000 penalty and in with Great Plains for $720 million in price cludes strict stipulations and fine schedule of long-range jet cargo business; devel guarantees of $6.75/MM Btu through the should the company continue to violate its opment of a practical method of end of 1988 and $5.00/MM Btu thereafter. permit in the future. moving large groups of animals safely This agreement is contingent on DOE and In at least three other court actions, and efficiently by air; and has demon FFB restructuring their loan with Great judges have found the companies liable for strated that, by utilizing the proper Plains. the violations, although the trial to deter equipment, cargo can be transported One related factor and our response to it mine the penalties have yet to be held, is pertinent to understanding the govern Lloyd said.e to the most remote regions on Earth. ment's involvement in this decision. There is One of Mr. Huff's principal objec currently pending at the Federal Energy tives during the past 7 years has been Regulatory Commission a rulemaking which A TRIBUTE TO HENRY P. HUFF to build Transamerica Airlines into a could go into effect later this year that is total air transportation company with designed to lower the cost of natural and HON. NORMAN Y. MINETA synthetic gas to consumers. We applaud this the capability of providing a wide effort, although it could affect Great Plains OF CALIFORNIA array of worldwide services to a broad differently from what was expected when IN THE HOUSE OF REPRESENTATIVES number of markets: charter, sched FERC first ruled on its tariff for Great Monday, July 22, 1985 uled, cargo, and military. He has done Plains in 1981. If this pending rulemaking an exceptional job. goes into effect, it may take a couple of •Mr. MINETA. Mr. Speaker, as the years before everyone knows precisely its Member of Congress who chairs the Hank has also been exceptionally impact on Great Plains. Therefore, because Subcommittee on Aviation of the active for the physcially disabled. The of the FERC uncertainty, we reserved for House Committee on Public Works dinner which is to be held to celebrate the government in the SFC/Great Plains and Transportation, I would like to his retirement will be a benefit for the agreement the right to terminate the ask you and our distinguished col Mary Ann Huff Memorial Fund. This project on August 1, 1986 and again on leagues to join me in saluting Henry P. August 1, 1987. is a perpetual fund administered by When the new SFC Board of Directors Huff in recognition of his 43 years in the San Mateo Peninsula Community began considering the government's interest the air transportation industry, and on Foundation to provide individual edu in this project, we set for our evaluation the occasion of his retirement as cational grants to physically disabled three principal standards: Cl> long-term op chairman and chief executive officer youths. eration; <2> small subsidy; and <3> debt re of Transamerica Airlines. Mr. Speaker, on the occasion of his payment. Our agreement meets these tests. In the time that I have known Hank, We believe this agreement will provide for he has been a leader in the air trans retirement from Transamerica Air long-term operation of the proJect to give portation industry and in the area of lines, Hank and his family can be con the country experience and knowledge using fident that the country and the indus American coals with this synthetic fuels the physically disabled. He has a long technology because of the way in which our history of achievement and accom try are most grateful for his contribu tions and accomplishments. Therefore, price guarantees tie into the currently pro plishments in these areas. jected financial performance of the project. Hank began his career as an aerody I ask my colleagues to join with me in The price guarantee package of $6.75 and namics and flight test engineer shortly expressing our thanks and congratula $5.00/MM Btu is about half of what was after receiving his aeronautical engi tions to Henry P. Huff. originally presented to us by SFC manage neering degree from the University of Thank you very much.e ment. And finally, assuming contract clo Minnesota in 1942. He joined Trans sure on August 1, 1985, the project sponsors begin paying back the government loans america Airlines, then known as Trans with both principal and interest payments International Airlines, in 1964 as exec on August 1, 1985. We did not want to bail utive vice president, after first being out Great Plains by relieving the sponsors with Curtiss-Wright Corp., and then of their debts. In 1985 their cumulative with Slick Airways. He was named principal and interest payments are project- 19932 EXTENSIONS OF REMARKS July 22, 1985 ed to be $73.8 million; in 1986 they grow to asked and have received assurances American people increasingly recognize that $256.5 million; in 1987 the figure becomes from State Department officials that the U.S. economy is becoming more and $727.1 million. should the Soviet Union permit in more interdependent with other countries. Thus, Jack, as you can see, we have given What I do not think they yet understand is Great Plains a helping hand, but they are creasing numbers of Jews to leave, we the shape of that interdependence. still on their own two feet. And that's the will raise our admission levels accord There is still a tendency to think of our way it should be. ingly. economic future in terms of our trade rela Sincerely, This call to conscience reaffirms our tionships with Europe and, more recently, TOM CORCORAN, underlying commitment to seek the re Japan. No wonder, given our enormous Vice Chainnan.e lease of prisoners of conscience who trade deficit with Japan. Last year it was have been imprisoned or sent into in $36.7 billion. This year, it will probably top ternal exile only because they have $50 billion. SOVIET JEWRY struggled to express their Jewish iden But it is important for all of us to under stand that increasingly our economy is tied SPEECl'l OF tity. We will continue to pursue our to the Third World. In fact, the Third humanitarian goals by providing a World has become the single largest market HON. HAMILTON FISH, JR. voice for the voiceless with the fervent for U.S. goods. OF NEW YORK hope that the Soviet Union will relax The East Asian countries of Korea, IN THE HOUSE OF REPRESENTATIVES its repressive policies.e Taiwan, Hong Kong, and Singapore, with a total population of about 70 mllion and a Tuesday, July 16, 1985 combined GNP of $125 billion, have sur • Mr. FISH. Mr. Speaker, once again, CHAIRMAN OBEY'S REMARKS passed any of the European countries in im I must speak out for religious freedom ON WORLD ECONOMY portance as a trading partner. They are now and basic human rights for those who more important exports markets than any HON. LEE H. HAMILTON of the European countries. And, they are are unable to speak for themselves. more important sources of imports. In the Over 2 million Soviet Jews are victim OF INDIANA first half of 1984, U.S. imports from these ized by attempts to suppress and stifle IN THE HOUSE OF REPRESENTATIVES countries ran 74 percent above 1981 levels, Jewish culture and consciousness. As Monday, July 22, 1985 contributing $13 billion to the widening we near the 10th anniversary of the trade deficit. Helsinki accords, it is apparent that e Mr. HAMILTON. Mr. Speaker, on Looking back to the late 1970's, it was the the reality of life for Jews of the June 29, my friend and colleague from booming Latin econoinies which gave us Soviet Union does not live up to the Wisconsin, DAVE OBEY, chairman of much of our growth. Those markets were promise of this agreement. We must the Joint Economic Committee, ad the fastest growing for U.S. exports. Esti dressed a group of CEO's from major mates are that nearly 50 percent of U.S. continue to urge the Soviet Union to growth in the later part of the decade can abide by the humanitarian principles corporations and presidents and chan cellors of major universities at the be directly attributed to demand from those that it agreed to and which are set countries. But since the debt crisis, our ex forth in the Helsinki final act. summer meeting of the Business ports to the region have plunged by over 40 During recent years there has been a Higher Education Forum at Notre percent. That should tell us that a major re drastic decrease in the number of exit Dame University. quirement for American policy is to help visas granted. From a high of 51,320 in Mr. OBEY makes many noteworthy assure that those developing countries grow. 1979, the emigration figure has plum comments on the changing world But, that is something we have not been meted to only 896 in 1984, a small frac economy and the challenges the doing very well. Growth in the developing United states must meet to remain the world over the past five years has been a tion of the 400,000 estimated to have very mixed bag. The next few years will applied for emigration visas. The Sovi world's preeminent power. I include his remarks for the benefit of my col bring more of the same. ets, by reducing emigration levels, are In the 1970's, the Latin countries, in the attempting to dampen our hopes. leagues: aggregate, grew roughly 6 percent per year. However, for those who wish only to THE CHANGING WORLD EcONOMY: RELATION Brazil averaged over 8 percent and was la practice their religion or be allowed to SHIPS BETWEEN THE UNITED STATES AND THE beled the "new econoinic miracle." Mexico, leave the Soviet Union for freedom THIRD WORLD, JUNE 29, 1985 after oil was discovered, grew at roughly the The Third World presents us with both same torrid pace. Then, in 1982, the debt elsewhere, we can not compromise our challenges and opportunities. How we meet bomb exploded. efforts. The Soviet Union itself set the those challenges and capitalize on those op A U.S.-led world recession curtailed standard we strive for. The higher portunities will go a long way in determin demand for Latin exports. That dried up an levels of emigration that were attained ing whether the United States remains the essential source of foreign exchange for in 1979 can be reached once again. preeminent econoinic power in the world. these countries. Skyrocketing U.S. interest And what is the lot for those who In discussing America's econoinic future, rates applied a double whammy. And, plung can not leave? Soviet Jews, who ex we start with two basic facts. The first is ing commodity prices were the final blow press-a desire to emigrate, are exposed that what happens within our domestic for Latin countries which have been de economy is central to our future because pendent on commodities as a major export. to government-sponsored harassment, the vast bulk of our econoinic activity still With bank financing reduced to a trickle, including dismissal from jobs, expul takes place right here at home. The second and IMF adjustment programs requiring sion from universities, vilification, con is that on the international scene, despite severe domestic restrictions on demand to fiscation of property, and physical vio the emergence of the Third World, the restore external credit worthiness, the Latin lence. A continuing series of attacks United States is still unique in its ability to countries plunged into deep recession. against Hebrew teachers has culminat influence the worldwide course of econoinic The toll of the Latin debt crisis on the ed in a wave of searches, threats, and events. U.S. economy has also been severe. arrests. To illustrate that, we need only remember According to testimony given last week the impact on the rest of the world on our before the Joint Economic Committee, the In response to these grave injustices, anti-inflation efforts of 1979-1981, and our loss of U.S. exports to Latin countries, cou many have spoken out at every oppor subsequent recovery. First, our tight mone pled with the dramatic rise in imports from tunity to focus world attention on the tary policy plunged America into the worst the region, has accounted for a $28 billion actions of the Soviet Union. Other recession since World War II and took the swing in our trade flows with those coun steps have been taken to assure that rest of the world with it. When we began to tries. That rivals the deterioration in our those who are fortunate enough to be recover in 1983, our strong growth provided trade relations with Japan, and translates able to leave will have a place to go. As short-term relief to Third World countries into roughly 1 percent loss of GNP and as ranking Republican on the House Ju in need of export markets to earn foreign many as 800,000 American jobs. exchange. Now, as we are clearly slowing The Joint Economic Committee hearings diciary Committee, I am 1 of the 4 down once again, the world is holding its have also made clear the fact that the Latin Members of the House of Representa breath. But preeminence does not mean debt problem is far from solved. In fact, we tives consulted by the administration that we are not dependent on the rest of the could be headed for another major financial on refugee admission levels. I have world for our economic prosperity. The crisis. Everything hinges on U.S. economic July 22, 1985 EXTENSIONS OF REMARKS 19933 growth. If our growth hovers in the 2 per icit with that country. The real question we OPEC deposits in commercial banks were cent range, Latin countries will not be able have to ask ourselves is whether we will be lent to developing countries to help finance to export enough to service their debt and able to compete with Japan in third mar- the cost of oil and development. In addition, resume modest economic growth. The result kets, which means the developing world. Saudi Arabia and some of the other wealthy could be suspension or limited debt pay And we will also increasingly need to be able Arab OPEC countries made substantial con ments, abandonment of IMF adjustment to compete with the "new Japans" of the tributions to the international financial and programs, and severe social and political Pacific rim, both abroad and in our own do- development institutions. unrest. mestic markets. To be sure, the Japanese have been in- Obviously our banking system would be Yesterday, you heard discussions concern- creasing their bilateral assistance some threatened. And so would democracy in ing the People's Republic of China, and what, but the vast majority of that assist Latin America. In fact, it is amazing to me about changes occurring in that country. To ance is targeted for their Asian neighbors, that we can focus enormous attention on assist it on the road to modernization and and overall it is not commensurate with Central America, and pour hundreds of mil prosperity, China is planning to use billions their resources. lions of dollars into the region, but pay of dollars in foreign investment. Who is It is time for Japan to stop coasting on scant attention to what is happening in going to get the lion's share of that enor- the international economic system, open up countries like Argentina and Brazil-coun mous pie? Will American companies be its markets, and start to contribute its fair tries of far more long-term importance to there providing telecommunications hook- share to Third World development. Devel the United States. Political polarization and ups and services, or will the Japanese? Will opment and growth in the Third World is in economic collapse in Latin America are far American companies be providing the their interest as much as ours. greater economic and strategic threats to modem transportation systems, and state- In short, Japan needs to take on a new the United States than Cuba and Nicaragua, of-the-art steel technology, or will the Kore- "recycling" effort. As holder of much of the and they are more immediate. ans? That is our competitive challenge, not world's wealth today, Japan is the OPEC of While Latin America has gone from boom whether the Japanese buy our baseball bats. the 1980's. It has an obligation to the world to bust in the past five years, Africa has Several days ago, the new leader of India economy to ensure that part of that wealth been suffering from a decade-long economic was in Washington for consultations with is transferred to Third World nations for bust, falling deeper and deeper into excruci the Administration and the Congress. Under productive development purposes. But, the ating poverty and almost hopeless underde Rajiv Ghandi's leadership, India, too, is em- catch is that Japan's surpluses cannot be re velopment. Whatever glimmers of hope the barked on a new economic path of economic cycled to Third World nations as long as our 1960's brought for Africa have been dashed liberalization and increased hospitality to insatiable need for funds to finance our by that performance. Like Latin America, direct foreign investment. Again, whose deficits persists. the reasons are both external-principally, companies are going to be sought by the In- When Reagan Administration officials falling commodity prices and a substantial dians to assist them with their ambitious de- came to power, they said the best thing we decline in development assistance-and in velopment plans? Ours? Or our major com- can do for the Third World is get our own ternal-namely, poor domestic economic petitors? The United States stands to gain economic house in order. They were right. policies. We have all been moved by televi enormously from the development plans of The problem is they did not do it. Our Fed sion pictures of undernourished and starv these emerging giants. eral budget deficit has become the world's ing Africans. But prospects for reversing the But, it we cannot offer the best quality greatest economic problem, and it must be situation are grim indeed. product at the best price, we will lose more attacked. Nothing else matters unless our In marked contrast with Latin America than just a sale. Clearly we face both chal- deficits are brought under control-and and the morass of Africa are the booming lenges and opportunities in the Third soon. Our thirst for outside funds to finance countries of the Pacific rim. These countries World. The key questions are how do we this $200 billion deficit is even sucking cap are the "new economic miracle." They have meet the challenges and make the most of ital out of Latin American and other devel been averaging growth of over 6 percent per the opportunities? oping countries-capital desperately needed year. Unlike Latin America, these nations The first thing we have to recognize is at home to finance development and Korea, Hong Kong, Singapore, and that an economically healthy and politically growth. Taiwan-have avoided the negative conse stable Third World is in the interest of all As everyone in the room knows, it is keep quences of excessive debt buildup and are the industrial countries. The Western Euro- ing the dollar too strong, robbing U.S. ex rapidly becoming first rate industrial pean democracies, particularly Germany porters of their ability to compete, and put powers. Since 1960, the rise of these "new and England, have a clear responsibility in ting excessive pressure on domestic firms Japans" has been spectacular. this regard. So far, they have tried to coast competing with imports. Our $123 billion By 1982, these four countries exported to on the U.S. recovery, taking advantage of trade deficit in 1984 is testament to this im- the United States twice as much as Germa our strong demand and high dollar. balance. ny, and four times as much as France. And, But our recovery is weakening rapidly, The President recently made a television they have demonstrated an ability to move and European countries with low inflation appeal to the nation asking for support of rapidly up the technology scale. That meH.llS rates and relatively small budget deficits his budget in order to reduce the deficit. they are not just competitors in "low" tech should help to pick up the slack. Burden- The problem is that the President's budget nology items like textiles, but they will in sharing demands that they absorb their fair does not significantly reduce the deficit. It creasingly challenge us in the high-tech share of exports from the developing world. · would cut $40 billion in domestic spending areas. Japan's refusal to shoulder responsibilities in order to finance military spending in So the challenges of the Third World are commensurate with its economic power is creases of $30 billion and higher interest many: a debt-burdened Latin continent even more glaring. No other country has payments of $12 billion. mired in recession; an impoverished and fast benefited more than Japan from the inter- That budget means that, from 1980 sinking Africa; a dynamic Asia looking to national economic system put into place at through this year: beat us in the international marketplace. the end of the War. It has taken full, and Military spending will have gone to 31 We have no choice but to assist Latin Amer some would say unfair, advantage of the cents on the dollar in the new budget, an in ica to overcome its debt burden if we are intemational trade and finance system. As a crease of 25 percent; ever to recoup our lost export markets, result, Japan has emerged as the second Retired and disabled programs will have expand them, and, at the same time, pre greatest industrial power in the Western remained exactly the same-37 cents on the serve democracy on the continent. We will world. Yet, so far, in my opinion, Japan has dollar versus 37 cents on the dollar in the need to give Africa a higher priority for de been unwilling to assume its proper and President's new budget; velopment assistance if it is ever to break rightful role of shouldering more responsi- Non-elderly poor will the cycle of poverty and starvation. And, fi bilities to go along with its new status. have dropped from 7 cents on the dollar to a nally, we must meet the competitive chal Last year, Japan ran a $44 billion trade little more than 5-1/2 cents on the dollar; lenge from the newly industrializing coun surplus with the rest of the world. It is Interest payments will have increased tries of East Asia. likely to rise substantially this year. Look- from 9 cents out of every dollar in 1980 to To meet that challenge, we need to broad ing at Japan's current account, a broader almost 15 cents in the Administration's new en our focus to include more than Japan measure of its external economic relations, budget, an increase of 60 percent. That and problems in that market. Restricted shows a surplus of $35 billion, which is esti- almost exactly equals the increase in the access to the Japanese market is a problem, mated to rise by some $10 billion this year. military budget; and but it is not our major one. We need to rec This shift represents an enormous re- Everything else would be cut almost ex- ognize that most of our competitive prob source transfer, similar to the sort of trans- actly in half from 21 percent to 11 percent. lems are homegrown-made in America. For fer we witnessed in the 1970's, when OPEC This is a part of the budget that contains example, even if access to Japan were total held so much of the world's wealth. Then, a the investment that we make in our own ly open, we would still run a large trade def- massive recycling effort was undertaken. future. It is really made up of two things: 19934 EXTENSIONS OF REMARKS July 22, 1985 Cl> Everything that we spend on a day-to challenge: the time has come to tell the Ad It is important to note that our in day basis to keep government running, such ministration in no uncertain terms that the creasingly heated domestic debate as the Customs Service, prisons, courts, Federal budget deficit must be cut dramati over abortion sometimes causes us to EPA, and the Public Health System; and cally, even if it takes tax hikes on top of <2> All of the investments we make in our spending cuts. lose sight of the full meaning of future. That includes investments to Many people blame the Congress more "choice" in a woman's reproductive strengthen the ability of our local communi than the Administration for our failure to life. The recent votes against interna ties to function, such as bridges, roads, and come to grips with the deficit. And believe tional family planning are sad exam sewage treatment plant construction. It also me I am not here to defend the Congress in ples of this lack of perception. Howev contains everything we invest in people in this whole process, after having spent six er, the notions of "choice" and "life," order to ·make our society more competitive years on the House Budget Committee. But are broader in their meaning than the and more productive. Everything we invest the fact is that historically Congress has single issue of abortion. They encom in kids by way of education, everything we always given Presidents basically the budg invest in workers by way of job training, and ets they request. This has been the case !or pass a woman's freedom to determine everything we invest in scientific research decades, but particularly over the past five when and whether she will bear chil to combat disease and to gain the basic years. Over the past five years, the Presi dren, the right to bear a child as well knowledge we need to compete in economic dent has asked Congress to appropriate $2 as to terminate a pregnancy. terms in a modem world in physics, in elec trillion, $67 billion, and $400 million. Over Truly prochoice and prolife propo tronics, in chemistry, in genetics, and the that same period of time, the Congress has nents will seek to create social and like. spent $2 trillion, $67 billion, and $700 mil economic conditions that will enable So, as you can see, the President's budget lion. That is more than 2/100 of 1 percent women to fully exercise their capacity does not cut overall spending. It simply more than the President has asked for. In transfers spending from the investment por fact, it is so small that, in Budget Commit to make good decisions for themselves tion of the budget to the military portion of tee deliberations, that amount is simply and their families in an environment the budget and to interest payments. Inter rounded off. Therefore, the reality is that that welcomes and nurtures children. est payments have gone up by over 60 per we need Administration leadership if we are Women can be trusted to make good cent because revenues were reduced ever going to have a serious deficit reduc choices, choices that support the well through tax rate cuts at the same time the tion program. Congress simply cannot do it being of their families, children, and military budget was being doubled. That on its own. society, and which enhance their own means that, even if we adopted the Presi To be honest, I am not optimistic that we integrity and health. dent's budget without changing a comma, will deal with this deficit problem and, interest payments would continue to rise as therefore, I am not optimistic that we can As elected officials, we have a re a percentage of the budget and they will maintain competitiveness and sustain eco sponsibility to work for a public policy continue to rise i..'l raw dollar terms. nomic growth. And I have got to tell you that ensures women the full range of So where are we now. Congress will that one of the major reasons I am not opti reproductive choices. No women produce a budget compromise at some time mistic is that I have no faith that in the should have to have an abortion be before the beginning of the fiscal year. It crunch either the business or the academic cause of her socioeconomic situation. I has to, despite the breakdown that occurred communities will stop mincing words and recommend this study for my col this week. That compromise will supposedly use their consderable influence. Nice ads leagues serious consideration.e save $50 billion. The problem is that $50 bil and statements of principles in the New lion in savings will in fact be more like $35 York Times calling for deficit reduction is billion. If you include the President's so one thing. Really exerting your power with MSGR. FRANCIS A. KANE MARKS called tax reform bill, which will result in the Administration is another. I hope my 50TH ANNIVERSARY OF more lost government revenue, we are no pessimism is proven wrong. The stakes for where near where we need to be in tackling the United States and, in fact, the world are PRIESTHOOD the deficit. enormous.• Of all leaders of this society, you as lead HON. PAULE. KANJORSKI ers of business and of academia know that OF PENNSYLVANIA global economic interdependence is not just PROCHOICE IS PROFAMILY a hollow, cliched phrase. It is the reality of IN THE HOUSE OF REPRESENTATIVES your daily world. Monday, July 22, 1985 As a businessmen, you face relentless com HON. JIM MOODY petition from imports from newly industri OF WISCONSIN e Mr. KANJORSKI. Mr. Speaker, I lized developing countries. And to maintain IN THE HOUSE OF REPRESENTATIVES take great pleasure in paying tribute your profitability, and your share of mar to a man who has contributed a great kets, you cannot avoid searching for new Monday, July 22, 1985 deal to his community, Msgr. Francis and lucrative markets in Third World na e Mr. MOODY. Mr. Speaker, I would A.Kane. tions. That is a major challenging to like to draw my colleagues' attention A native of northeast Pennsylvania, modem American business. How you re to an important new study just re Monsignor Kane was born and raised spond shapes your strategic plans at the leased by Catholics for a free choice. in Moosic. He went on to study at the plant level. It impacts the entire direction of U.S. investment, employment, and economic This study compares the voting College of St. Bonaventure University growth. records on prochild and profamily in New York. He then was assigned to As presidents of universities, you know issues of 100 Members of the House the University of Louvain in Belgium that you are key in determining America's who are totally supportive of abortion for his philosophical and theological future competitiveness in the global econo rights with 100 of those who are total studies. After being ordained in Bel my. ly opposed to abortion rights. It simi gium in 1935, Monsignor Kane re Our great universities have always been, larly compares the records of 30 pro turned to Pennsylvania to read his and must continue to be, a breeding ground choice Senators and 30 antichoice Sen first mass in the parish of St. Mary's for the ideas and innovations which will keep the United States in the forefront of ators. in Avoca. technological change. The study shows that Members of After various assignments in the You have an obligation to shake the both Houses who support abortion area, including one in Wilkes-Barre as system into facing the realities of economic rights were overwhelmingly more sup an assistant to Bishop John O'Connor interdependence. To this point, this organi portive of Child and Family programs . Office of Technology Assessment SD-562 SD-406 The Board, to meet to consider pending 2:00 p.m. Foreign Relations business. Labor and Human Resources To hold hearings on pending treaties. EF-100, Capitol Education, Arts, and Humanities Subcom SD-419 9:30 a.m. mittee 11:00 a.m. Banking, Housing, and Urban Affairs To hold hearings on S. 177, American Foreign Relations To resume oversight hearings on the de Defense Education Act. Business meeting, to consider pending posit insurance system SD-562 calendar business. SD-538 3:00 p.m. Energy and Natural Resources Agriculture, Nutrition, and Forestry SD-419 To continue oversight hearings to exam Business meeting, to mark up S. 501 and JULY31 ine problems facing the Nation's elec S. 616, bills to expand export markets 9:30 a.m. tric utility industry, focusing on the for United States agricultural com Labor and Human Resources prospect of serious shortages of elec modities, provide price and income tric power by the early 1990's. protection for farmers, assure consum To hold hearings to examine certain SD-366 ers an abundance of food and fiber at barriers to health care. Environment and Public Works reasonable prices, and continue low SD-430 Nuclear Regulation Subcommittee income food assistance programs, and Select on Intelligence To hold hearings on S. 445, to revise cer related measures. To hold closed hearings on counterintel tain provisions regarding liability for SR-328A ligence. nuclear incidents, and S. 1225, to com 4:00 p.m. SH-219 pensate the public for injuries or dam Select on Intelligence 10:00 a.m. ages suffered in the event of an acci To continue closed hearings on the de Environment and Public Works dent involving nuclear activities under velopment of a national intelligence taken by Nuclear Regulatory Commis strategy. Transportation Subcommittee sion licensees or Department of SH-219 To resume hearings on proposed legisla Energy contractors. tion authorizing funds for the Federal SD-406 JULY 26 Aid Highway Program. Finance 9:00 a.m. SD-406 To continue hearings on the President's Judiciary Foreign Relations tax reform proposal. Immigration and Refugee Policy Subcom SD-215 mittee To hold hearings to review current U.S. Governmental Affairs To hold hearings to examine certain im financing of foreign military exports. Permanent Subcommittee on Investiga migration procedures to gain legal and SD-419 tions expeditious entry into the United Select on Indian Affairs To hold hearings on money laundering States by marrying U.S. citizens. To hold hearings on S. 1396, to settle activities in Puerto Rico. SD-226 unresolved claims relating to certain SD-342 JULY 29 allotted Indian lands on the White Labor and Human Resources 10:00 a.m. Earth Indian Reservation in Minneso Labor Subcommittee ta. To hold oversight hearings on the Environment and Public Works impact of the Supreme Court's ruling Business meeting, to consider pending SR-485 in Garcia vs. San Antonio Metropoli calendar business. 11:30 a.m. tan Transit Authority on the coverage SD-406 Select on Intelligence of state and local government employ Finance Closed briefing on worldwide intelli ees under the Fair Labor Standards Savings, Pensions and Investment Policy gence matters. Act. Subcommittee SH-219 SD-430 To hold hearings to examine certain 2:00 p.m. problems encountered by employers in 10:00 a.m. Governmental Affairs Agriculture, Nutrition, and Forestry the funding of retiree health benefits. Business meeting, to mark up S. 501 and SD-215 Oversight of Government Management S. 616, bills to expand export markets Judiciary Subcommittee for United States agricultural com To hold hearings on S. 1300, to provide Business meeting, to mark up S. 992, to modities, provide price and income for antitrust law violators to be sub discontinue or modify certain require protection for farmers, assure consum jects to individual responsibillty for ments for agency reports to Congress, ers an abundance of food and fiber at treble the amount of damages attrib and S. 1134, to permit Federal agen reasonable prices, and continue low utable to their violations, and to cies to impose monetary penalties on income food assistance programs, and assure fairness in the allocation and individuals or companies which submit related measures. award of antitrust damages. certain false claims to the government. SR-328A SD-226 SD-342 Foreign Relations 1:30 p.m. AUGUSTl International Economic Policy, Oceans, Finance and Environment Subcommittee Health Subcommittee 10:00 a.m. To hold hearings on proposed legislation To hold hearings to examine the causes Foreign Relations authorizing funds for activities of the of higher costs experienced by hospi To hold hearings on the Supplemental Overseas Private Investment Corporation. tals treating low-income patients. Extradition Treaty Between the SD-419 SD-215 United States of America and the Governmental Affairs 2:00 p.m. United Kingdom of Great Britain and Civil Service, Post Office, and General Environment and Public Works Northern Ireland, with Annex
