January 20, 19 77 CONGRESSIONAL RECORD- SENATE 1859
By Mr. CORMAN (!or himself, Mr. AN Armed Forces. law enforcement officials, and, 13 or .15 _of title- 88, United States COde, or DERSON o! California, Mr. BLOUIN, as authorized by the Secretary of the Treas the Railroad Retirement Act of 1937 Will be Mr. DR:INAN, Mr. DUNCAN o! Tennes ury; licensed importers. manufacturers, deal considered as a. finding of disability under see, Mr. F'LOR:IO, Mr. HAM:ILTON, Mr. ers, and pistol clubs; to the Committee on any of such programs, and for other pur HANNAFORD, Mr. HARR:INGTON, Mr. the Judiciary. poses; jointly, to the Committee on Ways HOWARD, Mr. HUGHES, Mr. LEGGETl', H.R. 2279. A bill to incorporate Recovery, and Means, Veterans' Affairs, and Interstate Mr. LENT, Mrs. MEYNER, Mr. MINETA, Inc.; to the Committee on the Judiciary. and Foreign Commerce. ?,41'. MOFFETT, Mr. RoD:INO, Mr. Ros H.R. 2280. A bill to prohibit commercial By Mrs. HOLT (for herself, Mr. DICK ENTHAL, Mr. RoYBAL, Mr. ST 0ER fiights by supersonic aircraft into or over the :INSON, Mr. MARTIN, Mr. RoUSSELOT, MA:IN, and Mr. SCHEUER) : United States until certain findings are made Mr. BAUMAN, Mr. BYRON, Mr. BUR H.R. 2270. A bill to amend XVIII of the by the Administrator of the Environmental GENER, Mr. 5:rKON, Mr. DEVINE, Mr. Social Security Act to provide for the cov Protection Agency and by the Secretary of WAMPLER, Mr. CLEVELAND, Mr. VAN erage of certain psychologists' services utl Transportation, and for other purposes; to DER JAGT, Mr. RUDD, Mr. JOHN T. der the supplementary medical insurance the Committee on Public Works and Trans MYERS): benefits program established by part B of portation. H.J. Res. 188. Joint resolution to amend such title; jointly, to the Committees on H.R. 2281. A bill to amend chapter 1 of 26 the Constitution of the United States to re Ways and Means, and Interstate and Foreign U.S.C. to allow a deduction to tenants of quire a balanced Federal budget; to the Commerce. houses or apartments for their proportionate Committee on the Judiciary. By Mr. CORMAN (for himself, Mr. share of the taxes and interest paid by their By Mr. VANDER JAGT: JOHN L. BURTON, and Mr. SISK): landlords; to the Committee on Ways and H.J. Res. 189. Joint resolution proposing H.R. 2271. A bill to amend XVIIl of the Means. an amendment to the Constitution of the · Social Security Act to provide for the cover H.R. 2282. A bill to extend to all unmarried United States; to the Committee on the age of certain psychologists' services under individuals the full tax benefits of income Judiciary. the supplementary medical insurance bene splitting now enjoyed by married individuals H.J. Res. 190. Joint resolution proposing fits program established by pa.rt B of such filing joint returns; to the Committee on an amendment to the Constitution of the title; jointly, to the Committees on Ways and Ways and Means. United States providing for the election of Means, a.nd Interstate and Foreign Com H.R. 2283. A bill to amend title 42, United the President and Vice President; to the Com merce. States Code, chapter 7, subchapter II to in mittee on the Judiciary. By Mrs. HOLT: crease to $7,500 the amount of outside earn By Mr. YATES: H.R. 2272. A blll to amend chapter 44 of ings which (subject to further increases H.J. Res. 191. Joint resolution prescribing title 18 of the United States Code (respecting under the automatic adjustment provisions) model regulations governing implementation firearms) to penalize the use of firearms in is permitted each year without any deduc of the provisions of the Social Security Act the commission of any felony and to increase tions from benefits thereunder; to the Com relating to the admln.istra tion of social serv the penalties in certain related existing pro mittee on Ways and Means. ice programs; to the Committee on Ways and visions; to the Committee on the Judiciary. H.R. 2284. A bill to encourage increased Means. H.R. 2273. A bill to a.mend title 38, United use of public transit systems by amending By Mr. DELANEY: States Code, to authorize a. program of assist chapter 1 of title 26, United States Code, to H. Res. 151. A resolution to designate ance to States for the establishment, ex allow a. credit against individual income January 22 as Ukrainian Independence Day; pansion, improvement, and maintenance of taxes for funds expended by a taxpayer for to the Committee on Post Office and Civil payment of public transit fares from his or veterans cemeteries, and t9 provide for trans Service. her residence to his or her place of employ portation of bodies to national cemetery; a. ment and from his or her place of employ to the Committee on Veterans' Affairs. ment to his or her residence; to the Com PRIVATE Bn.L.S AND RESOLUTIONS By Mr. YATES: mittee on Ways and Means. H.R. 2274. A b111 to establish in the De H.R. 2285. A bill to amend title 42, United Under clause 1 of rule XXII, private partment of Housing and Urban Develop States Code, to include qualified drugs, re bills and resolutions were introduced and ment a direct low-interest loan program to quiring a physician's prescription or certifi severally referred as follows: assist homeowners and builders in purchas cation and approved by a formulary commit By Mr. JOHN L. BURTON: ing and installing solar heating (or combined tee, among the items and services covered H.R. 2289. A bill for the relief of Teresa solar heating and cooling) equipment; to under the hospital insurance program; to the Rodriguez De La Torre; to the Committee on the Committee on Banking, Fina.nee and Ur Committee on Ways and Means. the Judiciary. ban Affairs. H.R. 2286. A bill to amend title 42, United H.R. 2290. A bill for the relief of Ma Ho H.R. 2275. A bill to establish a. national States Code. chapter 7, subchapter II to re Lui; to the Committee on the Judiciary. adoption information exchange system; to duce from 20 to 5 years the length of time a H.R. 2291. A bill for the relief of Carmen the Committee on Education and Labor. divorced woman's marriage to an insured in Cecma Blanquicett; to the Committee on the H.R. 2276. A bill to designate the Indiana dividual must have lasted in order for her to Judiciary. Dunes National Lakeshore as the "Paul H. qualify for wife's or widow's benefits on his By Mr. TRIBLE: Douglas National Lakeshore"; to the Com wage record; to the Committee on Ways and H.R. 2292. A bill for the relief of Boulos mittee on Interior and Insular Affairs. Means. Stephan; to the Committee on the Judiciary. H.R. 2277. A bill to amend subchapter H.R. 2287. A bill to establish a policy for By Mr. YATES: XVIII, chapter 7, 42 U.S.C. to provide for the the management of oil and natural gas in H.R. 2293. A bill for the relief of Phyllis T. administrative and judicial review of claims the outer Continental Shelf; to protect the Pontrelli; to the Committee on the Judiciary. (involving the amount of benefits payable) marine and coastal environment; to amend which arise under the supplementary med the Outer Continental Shelf Lands Act; and ical insurance program; to the Committee for other purposes; jointly, to the Commit PETITIONS, ETC. on Interstate and Foreign Commerce. tees on Interior and Insular Affairs, the H.R. 2278. A ·bill to prohibit the importa Judiciary, Merchant Marine and Fisheries, Under clause 1 of rule XXII. tion, manufacture, sale, purchase, transfer, and Science and Technology. 33. The SPEAKER presented a petition of receipt, or transportation of handguns, in H.R. 2288. A bill to provide that a finding Dennis L. Nygren, Royal Oak, Mich., relative any manner affecting interstate or foreign of permanent and total disability under title to the Child and Family Services Act; to the commerce, except for or by members of the II or XVI of the Social Security Act, chapter Committee on Ways and Means.
SENATE-Thursday, January 20, 1977 The Senate met at 10: 15 a.m., on the dedication; We pray especially for our God," striving to set forward Thy king expiration of the recess, and was called President and for him who will preside dom on Earth. to order by the President pro tempore over this Senate. Give them an under We pray in the name of our Redeemer (Mr. EASTLAND). standing of our times, wisdom beyond and Lord. Amen. themselves, and health of mind and body PRAYER sufficient for their tasks. May the truths of the Bible on which their hands are THE JOURNAL The Chaplain, the Reverend Edward placed be the guide of this Republic in L. R. Elson, D.D., offered the following the years to come. And may the oath of Mr. CRANSTON. Mr. President, I ask prayer: ' office taken by two men be for every citi unanimous consent that the Journal of God of our Fathers, and our God, make zen a new pledge of allegiance and a the proceedings of Wednesday, Janu sacred to all of us this solemn day of fresh dedication to "one nation under ary 19, 1977, be approved. 1860 CONGRESSIONAL RECORD- SENATE January 20, 1977 The PRESIDENT pro tempare. With.. EC-445. A communication from the Presi- Cabinet nominations which are noncon out objection, it is so ordered. dent of the United States, transmitting a troversial, and on which rollcall votes are draft of proposed legislation to authorize the not anticipated; and, second, the Mc President to implement an agreement with Govern motion to refer Senate Resolu MESSAGES FROM THE PRESIDENT the Government of the Republic of Turkey relative to defense cooperation pursuant to tion 18 on Vietnam draft evaders to the Messages from the President of the article III of the North Atlantic Treaty in Judiciary Committee. The Executive Cal United States were communicated to the order to resist armed attack in the North endar presently has two nominations. Senate by Mr. Geisler, one of his secre .. Atlantic Treaty area (with accompanying The Senate will meet tomorrow; the taries. papers); to the Committee on Foreign present plan as I understand it is to con Relations. vene at noon, though conceivably that EC-446. A communication from the Presi could be changed, and vote at 1 p.m. on REPORT ON EMPLOYMENT AND dent of the United States, transmitting an the cloture motion close debate on TRAINING-MESSAGE FROM THE alternative nuclear program ship design, to PRESIDENT-PM 30 cost, and schedule (with accompanying Senate Resolution 18. - papers); to the Committee on Armed Serv- This afternoon the Senate will be con The PRESIDENT pro tempore laid ices. sidering those nominations submitted by before the Senate the following message EC-447. A communication from the Presi the new President on which no rollcall is from the President of the United States, dent of the United States, transmitting a desired. which was referred to the Committee report on the review of disaster loan author Tomorrow the Senate will presumably on Labor and Public Welfare: ities mandated in section 101 of Public Law consider some of the nominations on 94-305 (with an accompanying report) ; to which rollcalls are desired. To the Congress of the United States: the Committee on Banking, Housing and Urban Affairs. I am informed, although I am not I am transmitting to the Congress the absolutely certain of this, that the Senate annual Employment and Training Re EC-448. A communication from the Presi dent of the United States, transmitting a will not consider until Monday the port of the President, pertaining to em draft of proposed legislation to authorize nomination of the nominee for Secretary ployment and training requirements, re appropriations for the acquisition, improve of Labor. I am not certain that that is sources, and utilization, as required by ment, rehabilitation, and maintenance of the plan, but there have been some in sections 705 (a) and 705 (b) of the Com the National Park System and National Wild dications that that will be the case. prehensive Employment and Training life Refuges, and to increase grants to com I have nothing further to say at this Act of 1973, as amended. This Employ munities to improve park and recreation facilities (with accompanying papers); to moment. ment and Training Report of the Presi The PRESIDENT pro tempore. The dent also includes reports required by the Committee on Commerce and the Com mittee on Interior and Insular Affairs. minority leader is recognized. sections 209 and 413 of the same act. GERALD R. FORD. Mr. CRANSTON. Mr. President, I ask THE WHITE HOUSE, January 20, 1977. unanimous consent that a communica COMPLIMENTARY STATEMENTS tion from the President of the United States, relative to the National Park Mr. BAKER. Mr. President, I shall not REPORT OF THE CORPORATION FOR System and the National Wildlife Ref take very long, but I think it would be PUBLIC BROADCASTING-MES uges, be referred jointly to the Committee derelict of me if I did not compliment the distinguished Senator from California SAGE FROM THE PRESIDENT on Commerce and the Committee on In PM 31 terior and Insular Affairs. for his service today as acting majority leader and for his new position as major- The PRESIDENT pro tempore laid be The ACTING PRESIDENT pro tem ity whip of the U.S. Senate. · fore the Senate the following message pore. Without objection, it is so ordered. We are delighted to have the opportu from the President of the United States, EC-449. A communication from the Presi nity to work with such a great Member which was referred to the Committee on dent of the United States, transmitting a Commerce: report of the National Cancer Advisory of this body now, as in the past. Board for calendar year 1975 (with an ac Mr. CRANSTON. I thank the Senator To the Congress of the United States: companying report); to the Committee on very much. It is a great pleasure to work I am transmitting to the Congress the Labor and Public Welfare. with him and the Senator from Alaska annual report of the Corporation for EC-450. A communication from the Presi and the other leaders in the minority in Public Broadcasting, describing its ac dent of the United States, transmitting a the Senate. tivities for the year ending June 30, 1976. draft of proposed legislation to transfer cer tain functions from the Secretary of the GERALD R. FORD. Interior to the Secretary of Agriculture COMMENTS ON THE INAUGURATION THE WHITE HOUSE, January 20, 1977. (with accompanying papers); to the Com mittee on Interior and Insular Affairs. Mr. BAKER. Mr. President, this is a solemn event that we are about to wit.. Ct>MMUNICATIONS FROM EXECU ness and in which we are about to par TIVE DEPARTMENTS, ETC. STATEMENT OF ACTING MAJORITY ticipate. The PRESIDENT pro tempore laid LEADER There is no more fundamental and im before the Senate the following letters, Mr. CRANSTON. Mr. President, I pressive, indeed, there is no more solemn which were referred as indicated: would like to say that the majority leader constitutional function than the inaugu EC-441. A communication from the Presi is with the group that will lead the Presi ration of a new President and Vice Presi dent of the United States transmitting a dent-elect to the inauguration. It is for dent of the United States. draft of proposed legislation entitled "Energy that reason that I am acting in the ca In a few moments we will proceed as Independence Authority Act of 1977"; to the pacity of acting majority leader, which one of the two Chambers of one of the Committee on Interior and Insular Affairs. is a great thrill for me on this great day three coordinate branches of the Gov EC-442. A communication from the Presi ernment to the inaugural platform where dent of the United States, transmitting the for our country when we join in the pass· ing of· leadership to the President-elect, in the presence of all the principal of 16th annual report of the U.S. Arms Control ficials of the three departments, the and Disarmament Agency (with an accom Jimmy Carter, of Georgia. panying report) ; to the Committee on For oath of office will be administered and eign Relations. the power of the executive department EC-443. A communication from the Pres ORDER OF PROCEDURE TODAY will pass by orderly transition to new ident of the United States, transmitting an Mr. CRANSTON. Mr. President, I have hands. alternative nuclear program, ship design We will also see the induction of a characteristics (with accompanying papers); just a word on what will occur today. It was originally announced that we new President of this body, the Vice to the Committee on Armed Services. President of the United States. EC-444. A communication from the Presi would proceed in a body at 10:30 a.m. dent of the United States, informing the It will be more like 10 :50 a.m. before we Those of us on this side of the aisle Senate of his intention to withdraw the gather for that purpose. There will be a will celebrate fully the inauguration of designation of the People's Republic of the quorum call until that point after the our new President. Congo as a beneficiary developing country present proceedings have been concluded. While campaigns are partisan and for purposes of the generalized system of The Senate will reconvene at 4 p.m. to nominees are designated by the two preferences; to the Committee on Finance. day to consider, :first, the President's great parties, inaugurations are na- January 20, 1977 CONGRESSIONAL RECORD-SENATE 1861 tional and constitutional events, and we INAUGURATION OF THE PRESIDENT Senator RoBERT c. BYRD. on the Republican side will join with you OF THE UNITED STATES AND THE Representative WRIGHT. on the majority side in fully celebrating VICE PRESIDENT America the Beautiful." the three branches of Government that The Chief Justice of the United Stat.es (The U.S. Marine Corps Band played insure that too much power never lodges and the Associate Justices of the Su "America the Beautiful.") in two few hands in our Government. For preme Court, preceded by Mr. Michael [Applause.] those reasons I know that we will see to Rodak, Jr., Clerk of the Court and Mr. INVOCATION it that the congressional branch serves Alfred Wong, Marshal of the Court, were Senator CANNON. For our invoca fully in the decisionmaking process and escorted by Mr. Chester H. Smith, chief tion, I present Bishop William R. Can makes its views known when it feels that counsel of the Senate Rules Committee non of the United Methodist Church, it is necessary to suggest a different from the office of the Secretary of the Atlanta, Ga., will you please stand. course from that proposed in another Senate to the inaugural platform and Bishop CANNON. Let us pray. branch of our Government. were seated on the President's platform. Mrs. Ford and Mrs. Ro.eke! eller were O God, whom people of different per At this point, I am prepared to yield escorted to their seats on the Presidential suasions call by different names, yet on back the remainder of my time, if the platform by Mrs. O'Neill. whom we all alike depend for our lives, Senator from Tennessee is prepared to Mrs. Carter and Mrs. Mondale were our land, and the opportunity for hap yield back the remainder of his time. escort.ed to their seats on the President's piness: Grant us, we pray Thee, a new Mr. BAKER. Mr. President, I have no platform by Mrs. Cannon. and vital realization of Thy sovereignty further comment. I inquire of the acting Members of the Committee on Ar and our dependence, of what it means majority leader if we might not reserve rangements, accompanied by Deputy to be creatures responsible to their cre the remainder of our time under the Sergeant at Arms of the Senate Robert ator, and of our obligations, both as in standing order and suggest the absence C. Hough, Deputy Sergeant at Arms of dividuals and as a society, to Thee. of a quorum to ascertain further business the, House Elwyn G. Raiden, and Mr. Save us as a nation from the arrogant of the Senate. Larry E. Smith, minority staff director, futility of trying to play God: as if we Mr. CRANSTON. That is fine. of the Senate Rules Committee, escorted knew everything there is to know; as if I suggest the absence of a quorum. President Gerald R. Ford and Vice Presi our wealth were so great that we could satisfy the needs of people everywhere The PRESIDENT pro tempore. The dent NELSON A. ROCKEFELLER to the in augural platform in the following order: over the world and buy their favor and clerk will call the roll. support; as if our own power were limit The legislative clerk proceeded to call The President. The Vice President. less, so that we could manage and direct the roll. Senator HATFIELD. the affairs of humankind. The truth is Mr. CRANSTON. Mr. President, I ask Representative RHODES. that we are not able properly to man unanimous consent that the order for the (The U.S. Marine Corps Band played age and control ourselves, to guarantee quorum call be rescinded. ruffles and flourishes-"Hail to the to every American the full advantage The PRESIDENT pro tempore. With Chief.") of the fruits of his labor, so that each out objection, it is so ordered. [Applause.] one of us may sit under his own vine Members of the Committee on Ar and under his own fig tree, and none rangements, accompanied by Sergeant shall make us afraid. RECESS UNTIL 4 P.M. at Arms of the Senate F. Nordy Hoff The management of the world is Thy mann and Sergeant at Arms of the business, not ours, 0 God. Give us the The PRESIDENT pro tempore. The House Kenneth R. Harding, escorted humility and good sense to see this. Help Senate will stand in recess until 4 p.m. Vice President-elect Walter F. Mondale us to deal with others as .equals, seeking this afternoon. to the inaugural platform in the follow advice as well as giving it, receiving Walter Mondale, without any mental reservation or pur and of human liberty. It is that unique that he may support and complement in pose of evasion; and that I will well and self-definition which has given us an unselfish service the work of the Presi faithfully discharge the duties of the exceptional appeal-but it also imposes dent, and thereby make his own role in office on which I am about to enter. So on us a special obligation-to take on government indispensable. help me God. those moral duties which, when as Pour out the abundance of Thy grace, [Applause.] sumed, seem invariably to be in our own we pray Thee, upon Jimmy Carter, about (Ruffles and :flourishes-"Hail Colum best interests. ' to be inaugurated President of the United bia.") You have given me a great responsi States. We pray for his family, especially ADMINISTRATION OF OATH TO THE bility-to stay close to you, to be worthy Rosalynn, his wife, that they may sup PRESIDENT-ELECT of you, and to exemplify what you are. port him in this most difficult task. Senator CANNON. My fellow citizens, Let us create together a new national We thank Thee for his brilliant mind, I present the distinguished Chief Justice spirit of unity and trust. Your strength his signal accomplishments in public of the United States, the Honorable War can compensate for my weakness, and service, his exemplar Christian life, and ren Earl Burger, who will administer the your wisdom can help to minimize my his devotion to Thee and to Thy people oath of office to the President-elect. mistakes. Give him the wisdom, the strength, and [Applause.] Let us learn together and laugh to the goodness to take his place among Chief Justice BURGER. Governor gether and work together and pray to the greatest of our Presidents; and grant Carter, are you prepared to take the gether, confident that in the end we will him, like Solomon, an understanding constitutional oath? triumph together in the right. heart to govern Thy people rightly. President-Elect CARTER. I am. [Applause.] Make our people governable, O God. The Chief Justice of the United States, The American dream endures. We Save our Nation from factionalism and Warren Earl Burger, administered to the must once again have full faith in our from the divisiveness of those who exert President-elect the oath of office pre country-and in one another. I believe pressure on Government for their own scribed by the Constitution, which he America can be better. We can be even interests, seeking selfish gain more than repeated, as follows: stronger than before. the common good. Make us, we pray, one I, Jimmy Carter, do solemnly swear Let our recent mistakes bring a re people under Thee, united for the good that I will faithfully execute the office surgent commitment to the basic prin of the Nation and for the service of the of President of the United States, and ciples of our Nation, fo:r: we know that if world. Help us together to build a nation will, to the best of my ability, preserve, we despise our own government we have here on Eart that in its manner of life protect, and defend the Constitution of no future. We recall in special times anticipates Thine everlasting kingdom the United States. So help me God. when we have stood briefly, but magnifi in heaven. Chief Justice BURGER. Congratula cently, united; in those times no prize All this we ask in the name of Jesus tions. was beyond our grasp. Christ, Thy Son and our Savior. Amen. [Applause.] But we cannot dwell upon remembered PRESENTATION OF "BATTLE HYMN OF THE (Four ruffles and :flourishes, "Hail to the glory. We cannot afford to drift. We re REPUBLIC" Chief," and 21-gun salute.) ject the prospect of failure or mediocrity Senator CANNON. We will now have Senator CANNON. The President of or an inferior quality of life for any per the pleasure of hearing the "Battle the United States. son. Hymn of the Republic" sung by selected [Applause.] Our Government must at the same voices from Atlanta University, Clark, INAUGURAL ADDRESS time be both competent and compassion Morehouse, Morris Brown, and Spelman President CARTER. For myself and for ate. Colleges, and the Interdenominational our Nation, I want to thank my predeces We have already found a high degree Theological Center. This chorus is con sor for all he has done to heal our land. of personal liberty, and we are now ducted by Dr. Wendell P. Whalum and [Applause.] struggling to enhance equality of oppor will be accompanied by the U.S. Marine In this outward and physical ceremony tunity. Our commitment to human rights Band. we attest once again to the inner and must be absolute, our laws fair, our nat (The "Battle Hymn of the Republic" spiritual strength of our Nation. ural beauty preserved; the powerful must January 20, 1977 CONGRESSIONAL RECORD- SENATE 1863 not persecute the weak, and human dig Within us, the people of the United future. Each of us, Father, sets out a nity must be enhanced. States, there is evident a serious and hope before You-for the days to come. We have learned that "more" is not purposeful rekindling of confidence, and We beg Your special blessing on Presi necessarily "better," that even our great I join in the hope that when my time dent Carter and Vice President MONDALE Nation has its recognized limits, and that as your President has ended, people and their families. There is loneliness on we can neither answer all questions nor might say this about our Nation: the mountain. Grace that loneliness with solve all problems. We cannot afford to That we had remembered the words of Your presence. do everything, nor can we afford to lack Micah and renewed our search for hu Give us the strength to struggle beyond boldness as we meet the future. So to mility, mercy, and justice; pain, to reach out our hands to the gether, in a spirit of individual sacrifice That we had torn down the barriers alienated and to the poor. for the common good, we must simply do that separated those of different race Where suffering and weak voices cry our best. and region and religion, and where there out, may we be present to nourish. Our Nation can be strong abroad only had been mistrust, built unity, with a Where injustice speaks, may we have if it is strong at home, and we know that respect for diversity; the courage to change it. the best way to enhance freedom in other That we had found productive work Where proper dissent is present may lands is to demonstrate here that our for those able to perform it; we have ears to listen. democratic system is worthy of emula That we had strengthened the Ameri Watch over the leaders of this Earth. tion. can family, which is the basis of our Give them hearts for compassion and the To be true to ourselves, we must be society; fire of freedom. Give them the courage true to others. We will not behave in That we had insured respect for the to speak out and to listen quietly. foreign places so as to violate our rules law, and equal treatment under the law, Give them the humility of sincere faith and standards here at home, for we know for the weak and the powerful, for the and the vision of future good. And that the trust which our Nation earns rich and the poor; especially today, we ask You to watch is essential to our strength. And that we had enabled our people over our new leaders, set them upon the The world itself is now dominated by to be proud of their own government right way. a new spirit. Peoples more numerous and once again. For You are the Lord in whom we more politically aware are craving and [Applause.] trust. You are the God of our faith. now demanding their place in the sun I would hope that the nations of the To You be praise and glory forever and not just for the benefit of their own world might say that we had built a ever. Amen. physical condition, but for basic human lasting peace, based not on weapons of PRESENTATION OF THE NATIONAL ANTHEM rights. war but on international policies which Senator CANNON. Concluding the The passion for freedom is on the rise. reflect our own most precious values. program, the National Anthem will be Tapping this new spirit, there can be These are not just my goals, and they sung by Cantor Isaac Goodfriend of no nobler nor more ambitious task for will not be my accomplishments, but tpe Atlanta, Ga., accompanied by the U.S. America to undertake on this day of a affirmation of our Nation's continuing Marine Band. new beginning than to help shape a just moral strength and our belief in an un (The National Anthem was sung by and peaceful world that is truly humane. diminished, ever-expanding American Cantor Isaac Goodfriend, accompanied We are a strong Nation, and we will dream. by the U.S. Marine Corps Band, audi maintain strength so sufficient that it Thank you very much. ence standing.) need not be proven in combat-[ap [Applause.] [Applause.] plause]-a quiet strength based not BENEDICTION vigilant and never vul John R. Roach, archbishop of St. Paul companied by Sergeant at Arms of the nerable, and we will fight our wars Minneapolis, Minn. Senate Hoffmann, Sergeant at Arms of against poverty, ignorance, and injus Archbishop ROACH. May we join in the House Harding, and Executive Direc tice-[applause]-for those are the prayer. tor Cochrane, escorted the President and enemies against which our forces can be God our Father, we thank You now for the Vice President from the President's honorably marshaled. this Earth, for its fertility and strength, platform in the following order: We are a proudly idealistic Nation, but for the green hills, the windy plains, the The President and Vice President. let no one confuse our idealism with pounding of the sea and mountain for Senator CANNON and Speaker O'NEILL. weakness. ests, for the Earth's resources and its Senator ROBERT c. BYRD and Repre- Because we are free we can never be fragile beauty. sentative WRIGHT. indifferent to the fate of freedom else We thank You for the gift of life: May Senator HATFIELD and Representative wh~re. we reverence it and protect it: We thank RHODES. [Applause.] You for the gift of peace which You have (The U.S. Marine Corps Band played placed in our earthen hearts. Our moral sense dictates a clearcut ruffles and flourishes-"Hail to the Chief.") preference for those societies which share In our struggles to become a people You have given us in each age the lead (The inaugural ceremonies were con with us an abiding respect for individual cluded at 12:25 p.m.> human rights. We do not seek to intimi ership of men and women whose noble date, but it is clear that a world which daring and peaceful ways have brought others can dominate with impunity us to this time. We thank You for those gone before us. From many gural ceremonies, the Senate reassem threat to the well-being of all people. walks of life, and from many races and bled at 4 p.m., when called to order by nations You have fashioned a country the Presiding Officer The world is still engaged in a massive whose cultures have unfolded ever armaments race designed to insure con broader patterns of life, t:ach reflecting QUORUM CALL tinuing equivalent strength among po its own brilliance and hope. For this tential adversaries. We pledge persever variety we thank You. Mr. ALLEN. Mr. President, I suggest ance and wisdom in our efforts to limit We thank You, Lord, for the freedom the absence of a quorum. the world's armaments to those neces we enjoy, to worship, to learn, and to use The PRESIDING OFFICER. The clerk sary for each nation's own domestic will call the roll. safety. And we will move this year a step Your gift of talents to their full; for sim The assistant legislative clerk pro toward our ultimate goal-the elimina plicity of life, to live our days in the com ceeded to call the roll. tion of all nuclear weapons from this pany of friends, to work in peace in our The PRESIDING OFFICER. A quo- Earth. homes, on our farms and in our cities. rum is not present. [Applause.] We remember, Lord, all these blessings Mr. ROBERT C. BYRD. Mr. President, We urge all other people to join us, You have given to us in the past. And I move that the Sergeant at Anns be for success can mean life instead of we thank You. instructed to request the attendance of death. Today we have come to celebrate our absent Senators. 1864 CONGRESSIONAL RECORD-SENATE January 20, 1977 The motion was agreed to. Eagleton Javits Proxmire at 4:49 p.m., recessed until 4:52 p.m.; Eastland Johnston Randolph The PRESIDING OFFICER. The Ser Ford Laxalt Riegle whereupon, the Senate reassembled when geant at Arms will execute the order of Glenn Long Sarbanes called to order by the Presiding Officer the Senate. Gravel Lugar Sasser (Mr. FORD). Pending the execution of the order, the Hansen Magnuson Schmitt Haskell Mathias Schweiker following Senators entered the Chamber Hatch Matsunaga Scott and answered to their names: Hatfield McClellan Sparkman EXECUTIVE SESSION Hathaway McClure Stennis [ Quorum No. 4 Ex.] Hayakawa McGovern Stevenson Mr. ROBERT C. BYRD. Mr. President, Allen Glenn McClure Heinz Melcher Talmadge I move that the Senate go into executive Anderson Hansen Melcher Helms Metzenbaum Thurmond session. Baker Hatch Metzenbaum Hollings Morgan Wallop Byrd, Helms Morgan Huddleston Moynihan William.S The motion was agreed to and the Harry F., Jr. Humphrey Moynihan Humphrey Nunn Zorinsky Senate proceeded to the consideration of Byrd, Robert C. Jackson Nunn Inouye Packwood executive business. Chafee Javits Proxmire Jackson Percy Chiles Johnston Sarbanes NAYS-1 Cranston Long Schmitt Deconcini Lugar Scott Biden Domenic! Magnuson Sparkman MESSAGES FROM THE PRESIDENT Eastland Mathias Stennis NOT VOTING-30 Ford McClellan Talmadge Abourezk Garn Pearson Messages from the President of the Bartlett Goldwater Pell United. States were communicated to the Mr. ROBERT C. BYRD. Mr. President, Bellmon Griffin Ribicoff I move that the Sergeant at Arms be di Brooke Hart Roth Senate by Mr. Geisler, one of his secre rected to compel the attendance of ab Burdick Kennedy Stafford taries. Cannon Leahy Stevens The Presiding Officer laid before the sent Senators, and I ask for the yeas and Church Mcintyre Stone nays. Clark Metcalf Tower Senate the following messages from the Culver Muskie Weicker President of the United States: The PRESIDING OFFICER. Is there Curtis Nelson Young a sufficient second? There is a sufficient To the Senate of the United States: second. So the motion was agreed to. I nominate the following-named per The yeas and nays were ordered. The PRESIDING OFFICER. With the sons to the positions indicated: The PRESIDING OFFICER. The clerk addition of Senators voting who did not Cyrus Vance, of New York, to be Sec will call the roll. answer the quorum call, a quorum is now retary of State. The legislative clerk called the roll. present. W. Michael Blumenthal, of Michigan, to be Secretary of the Treasury. Mr· CRANSTON. I announce that ORDER OF BUSINESS Harold Brown, of California, to be the Senator from South Dakota North Carolina, Massachusetts (Mr. KENNEDY), the Sen want to conduct their conversations they to be Secretary of Commerce. ator from Vermont (Mr. LEAHY), the shall do that in the cloakroom. Ray Marshall, of Texas, to be Secre Senator from New Hampshire (Mr. The Senate will be in order. tary of Labor. McINTYRE), the Senator from Montana The Senator from Tennessee. Joseph A. Califano, Jr., of the District Columbia, to be Secretary of Health, (Mr. MUSKIE), the Senator from Wis VISIT TO THE SENATE BY GOVER Education, and Welfare. consin (Mr. NELSON). the Senator from Patricia Roberts Harris, of the Dis Rhode Island (Mr. PELL), the Senator NOR AND RESIDENT COMMIS SIONER OF PUERTO RICO trict of Columbia, to be Secretary of from Connecticut (Mr. RIBICOFF), and Housing and Urban Development. the Senator from Florida (Mr. STONE) Mr. BAKER. Mr. President, it is my Brockman Adams, of Washington, to are necessarily absent. privilege to announce that today in the Mr. BAKER. I announce the Senator be Secretary of Transportation. Chamber is present with us the distin JIMMY CARTER. from Oklahoma United Nations with YEAS-69 Mr. BAKER. Mr. President, I ask the rank and status of Ambassador Ex Allen Byrd, Cranston unanimous consent that the Senate stand traordinary and Plenipotentiary, and the. Anderson Harry F., Jr. Danforth in recess for a period of 5 minutes while Representative of the United States in Baker Byrd, Robert C. DeConcini we pay our respects to our distinguished Bayh Case Dole the Security Council of the United Na Bentsen Chafee Domenici guests. tions, which was referred to the Com Bumpers Chiles Durkin There being no objection, the Senate, mittee on Foreign Relations. January 20, 1977 CONGRESSIONAL RECORD--SENATE 1865 SECRETARY OF DEFENSE $10,000 or more with the Department of have denied him the right to carry on Mr. ROBERT C. BYRD. Mr. President, Defense. where he left off-examining wasteful I ask unanimous consent that the Senate Mr. President, Dr. Harold Brown, who practices in procurement and research proceed to the consideration of the is currently the President of the Cali and development. nomination of Mr. Harold Brown of Cali fornia Institute of Technology, is no In my opinion he should promptly be fornia to be Secretary of Defense. stranger to Washington and the Defense reinstated to his former position, with The PRESIDING OFFICER. Without establishment. He served as the Director his former responsibilities and with the objection, it is so ordered. The nomina of Defense Research and Engineering same chances for advancement. To do tion will be stated. from 1961 to 1965 and as Secretary of less is to further penalize this fine civil The legislative clerk read the nomina the Air Force from 1965 to 1969. He servant. tion of Harold Brown of California to be brings with him to this post an excellent President Carter has offered a four Secretary of Defense. knowledge, not only of how the Defense point program for improving the work Department operates, but also an under Mr. STENNIS. Mr. President, after ing conditions and rights of civil serv 3 days of hearings on this nomina standing of the most important role that ants. In his point 4, the President's tion, the Committee on Armed Services our national defense must play in world statement reads: "The Fitzgerald case, affairs. He has complied completely with where a dedicated civil servant was fired unanimously voted in favor of recom committee guidelines regarding conflicts mending the confirmation of Harold from the Defense Department for report of interest. ing cost overruns, must never be re Brown as Secretary of Defense. Mr. President, Dr. Brown has the There are 16 members of that commit peated." unanimous support and confidence of Who was the Secretary who first tried tee, and all 16 are recorded in favor of the Committee on Armed Services, and this report. to fire Fitzgerald? Harold Brown, the I predict he will be an excellent Secre man whose nomination is now before the The resolution that passed the com tary of Defense. Senate. mittee was that when the nomination Mr. President, I yield the floor. It is time for the new Secretary of came in, the chairman was authorized to Mr. CRANSTON. Mr. President, I want Defense, Mr. Brown, to carry forthwith say that testimony had been taken and to just say a word or two on behalf of that pledge that the President has given the vote I have just referred to was made the nomination of Mr. Brown. us and reinstate Fitzgerald to his former and that the chairman was authorized to He is an outstanding citizen of Cali position. make a report to the Senate, which I fornia with a remarkable background in Mr. President, my second reservation now do. I have a written copy of the the field where he will have responsibil deals with the much-debated B-1 resolution here should anyone wish it. ities in the Department of Defense. He bomber program. Mr. President, in anticipation of the has formerly held a very high position Not since the ABM debates of 1969-70 nomination of Dr. Harold Brown to be in the Department of Defense which he has a defense issue created so much con Secretary of Defense, the Armed Serv handled with great distinction. troversy. And not in recent memory has ices Committee has carefully and thor He is presently the president of Cali a major weapon decision been opposed oughly examined his credentials. Open fornia Institute of Technology in Cali by so many defense experts. hearings were held on January 11, and fornia and has wide background in all The President campaigned on the a classified, executive' session was held the matters for which he will bear re pledge that the B-1 was an example of on January 13, during which time com sponsibilities as DOD Secretary. a wasteful system that should not be mittee members questioned Dr. Brown I recommend him very, very highly. funded. at length on a variety of defense issues. Mr. PROXMIRE. Mr. President, I shall President Carter was about as explicit Subsequent to those hearings the com be brief. Although I intend to vote for and definite in his statement against the mittee voted on the expected nomination the confirmation of Secretary of De B-1 bomber as he could be. of Dr. Brown, and I am pleased to re fense-designate Harold Brown, I do so The new Secretary of Defense-desig port to the Senate that the committee with a number of reservations in mind. nate, however, does not display the same vote to support Dr. Brown's confirma These reservations have nothing to do questioning quality about the B-1. In a tion was unanimous. with his personal integrity or his very letter to me of last summer, Harold I think a word on the conflict of in extensive experience in defense affairs. Brown stated that he thought the De terest situation as it applies to this most But I .am concerned about three mat fense Department had the best argu important nomination is in order. There ters. The Fitzgerald case, the B-1 bomb ments for the B-1. This was a strong sig are, of course, statutes requiring respon er decision, and the pledge to cut $5 to $7 nal that he probably will approve a deci sible government officials to take certain billion in defense funds. sion to go ahead with full-scale produc actions to avoid conflict of interest situ THE FITZGERALD CASE tion of the B-1 which according to the ations. Very recently, President Carter First is the Fitzgerald controversy. budget of the outgoing administration has set forth his own new guidelines When Ernest Fitzgerald testified before will cost at least $2.15 billion just for fis which go far beyond current law. How the Joint Economic Committee on No cal year 1978, and more than $20 billion ever, the Armed Services Committee has v~mber 13, 1968, he committed one of the over the next few years. traditionally applied a set of conflict of cardinal sins against any bureaucracy This would be a most unwise decision interest guidelines far more stringent he told the truth and it was embarras which actually could result in a less cap than required by law or even by the new sing. The Secretary of the Air Force at able defense than other bomber-related Carter guidelines. that time was Harold Brown. Secretary alternatives. At $24 billion, the B-1 could We have done this because the deci Brown subsequently called Fitzgerald price us out of an adequate military pos sions made by our key Defense Depart into his office and told him that his testi ture. ment civilian leadership cannot be made mony has created a political problem. CUT IN THE DEFENSE BUDGET in an environment that would permit After that meeting a series of calcu The final item is the now questionable even the appearance of a conflict of in lated reprisals were lodged against Fitz commitment to cut $5 to $7 billion out of terest. The committee guidelines require gerald. He lost his tenure. His submis the defense budget. From what appeared that a nominee divest himself of all secu sions for the record of the Joint Eco to be a clear statement of intent, that rities in firms which during the last year nomic Committee were tampered with. phrase has now become almost unrecog received contracts of $10,000 or more He lost his job function. Secretary Brown nizable. The Secretary of Defense-desig with the Department of Defense. In addi requested a memorandum from his per nate has further confused the issue by tion, the committee has required that sonnel officer Thomas Nelson on the sub speaking of savings in other years, or nominees resign from all posts in firms ject of "what are his rights?" In testi savings out of increases, or savings by which during the last year received con mony on May of 1971, this phrase was efficiency that do not really show up, or tracts of $10,000 or more with the De explained to mean "How can I fire him?" savings by productivity. It no longer is partment of Defense. And finally, the The resulting memorandum offered three clear whether or not the original concept nominees must not receive any compen methods to fire Fitzgerald. of savings will be adhered to or not. sation for services performed during their Since that time, the courts have rein Certainly savings can be made in the term of office from firms which during stated Fitzgerald to a position in the defense budget. Congress finds a way the last year received contracts of Pentagon. But administrative actions each year to make savings and yet to 1866 CONGRESSIONAL RECORD-SENATE January 20, 1977 increase the capabilities of our fighting next six years in a constant confrontation The PRESIDING OFFICER. Without forces. In fact certain savings, by cutting with you. objection, it is so ordered. Now frankly, I don't know nearly as much out wasteful practices or reordering pri as the other members of this committee do orities, may of themselves improve our about some of the matters about which they SECRETARY OF THE INTERIOR military capability. have been speaking. They are far more knowl In the days ahead I will be detailing edgeable. They have expertise, and it has Mr. ROBERT C. BYRD. Mr. President, just where a number of significant sav been a. good learning lesson for me. I ask unanimous consent that the Senate ings can be made in this year's defense But I do have pretty good knowledge with proceed to the consideration of the budget. In the meantime, however, the respect to how to spend a. dollar, and since nomination of Cecil D. Andrus, of Idaho, statements by the Secretary of Defense your Department will be the largest spender to be Secretary of the Interior. of the American taxpayer's dollars, I am designate on the issue of potential sav very much concerned about wastefulness in The legislative clerk read the nomina ings do not give one cause for optimism. that Department. tion of Cecil D. Andrus, of Idaho, to be At this time, Mr. President, I do not You a.re opposed to waste. Of course we Secretary of the Interior. oppose this nomination, but I do have all a.re. You want to cut the budget. We The PRESIDING OFFICER. The these serious reservations which I all do. Senator from Washington. thought I should call to the attention But the fa.ct is when it comes down to the Mr. JACKSON. Mr. President, this of the Senate. hard questions: cost overruns, competitive nomination was reported unanimously. I yield the floor. bidding, military personnel winding up on Governor Andrus has been a distin the other side of the table three weeks after guished Governor of the State of Idaho The PRESIDING OFFICER. The Sen they leave the military department, protect· ator from New Mexico. ing individuals who are wllling to speak up and is in his second term. He was re Mr. SCHMITT. Mr. President, I wish a.bout waste, frankly, Dr. Brown, your an elected by the largest margin in the to speak in behalf of Dr. Brown as Secre swers were less than what I had hoped they State's history. t.arv of Defense. would be. I believe he is uniquely qualified to I became acquainted with him over the There are two ways improvement can be serve as Secretary of the Interior. He is last few years as part of my association made. One is the way it should be done. And familiar both by his experience as Gov with the California Institute of Tech that is by you as the head of the Depart ernor and as a distinguished citizen of ment, issuing orders within the Department the West with at least some of the funda nology, which was a continuation of a saying DOD will require competitive bidding; long association with that institute. the Department of Defense is not going to mental problems facing the Department I think probably the most important approve cost overruns; the Department of of the Interior . . q1ialification that he has is a very modern Defense is not going to continue old prac We had a number of outside witnesses. and up-to-date understanding of not tices which have caused overruns. There was no opposition to him. I urge only the threat that we face from po The alternative method is for a Member of the unanimous support of his nomi tential adversaries abroad, but the base Congress to offer an amendment to a pend nation. of scientific research and technology that ing bill, ordering you to do that which you Mr. President, I ask unanimous con now exists within this country is partly should have done in the first instance any sent that at this point there be printed how. the result of his administration of the I jtist wanted to say that I would prefer in the RECORD an excerpt from the com California Institute of Technology, a not to have to force you to do your job. mittee report on the nomination. base of research and technology that will But I am determined that you can make There being no objection, the excerpt allow us, if we properly use that base, cuts in the milltary budget if you eliminate was ordered to be printed in the RECORD, to withstand threats to our security and some of the practices which presently exist. as follows: to the security of free men everywhere It is not a question of five billion or eight COMMITTEE ACTION in the world, if those threats are ever billion-it could be more-much more. But President-elect Carter has publicly indi made a reality. if you meet the problem squarely, then there cated that, upon taking the Office of Presi I urge all of us to support his nomina will be no need for me to be a thorn in your dent, he intends to nominate Mr. Andrus side. to be Secretary of the Interior. In anticipa· tion, to look very carefully at what he I would hope that while you are resolving proposes, as we will in all nominations tlon of that nomination, the committee held some of the problems concerning the various public hearings on January 17 and 18, 1977. submitted by the President, but I hope matters that have been discussed by other After full consideration of his record and that that base of research and technology members of the committee, that you would credentials, the committee found Mr. Andrus which now exists in this country will, in understand that there is one Senator out qualified for the position -0f Secretary of the fact, insure the survival of the country there on that floor who is going to be on you Interior. On January 18, 1977, the committee and free men everywhere. for a long period of time to see if we can't voted unanimously to report favorably on make this Defense Department more busi the nomination of Mr. Andrus, when received. Mr. President, I recommend the con nesslike than it has been. BIOGRAPHICAL SKETCH firmation of Dr. Brown. It ls not an easy task. MacNama.ra tried it The PRESIDING OFFICER. The Sen and failed. You are fighting an uphill battle, Governor Cecil D. Andrus was born in Hood ator from Ohio. but I wanted you to know how strongly I feel River, Oregon, on August 25, 1931, to Hal and Mr. METZENBAUM. Mr. President., a.bout the subject before you are confirmed. Dorothy Andrus. Following a year at Oregon State, the last week, the Committee on Armed Serv Mr. STENNIS. Mr. President, I will Governor served in the Navy during the ices conducted closed hearings to inquire not detain the Senate. We had 1 day Korean war, then returned with his wife, into the nomination of Dr. Harold Brown of closed hearings and two sessions of Carol, to Orofino, Idaho. They have three to be Secretary of Defense. During those open hearings. daughters, Tanna, Tracy, and Kelly. hearings I had the opportunity to advise With reference to the $5 billion to $7 Elected as Idaho's 25th Governor and Dr. Brown of my strong belief in the need inaugurated on January 4, 1971, Governor billion, that was discussed some there, Andrus was re-elected on November 5, 1974, to make the Defense Deoartment much and Dr. Brown was asked questions. But more business-like and cost effective. to a second term by the largest margin in after that, as I have said, the committee the State's history. While I intend to vote to confirm Dr. voted unanimously, 16 to O in favor of As a freshman Governor, he was named Brown, I would like to insert an edited the confirmation. to the Executive Committee of the National version of the remarks I made during On the matter of the B-1 bomber, some Governors' Conference. He served as chair those closed hearings into the RECORD. on our committee oppose the B-1 bomber. man of the Rocky Mountain Federation of Mr. President, I ask unanimous con That was discussed, as ! said, as well as States (1970-1972) and until recently was sent that my remarks be printed in the chairman of the National Governors' Confer- the $5 billion to $7 billion reduction. ence. RECORD. Still the vote was unanimous. COMMITl'EE HEARINGS yield the President. There being no obiection, the remarks I floor, Mr. The committee held 2 days of public hear were ordered to be printed in the RECORD, The PRESIDING OFFICER. The ques ings on the proposed nomination of Governor as follows: tion is, Will the Senate advise and con Andrus. The Governor testified on Janu REMARKS ON CONFIRMATION OF HAROLD sent to the nomination of Harold Brown ary 17, 1977. A copy of his prepared state BROWN to be Secretary of Defense? ment follows: (By Hon. HOWARD METZENBAUM) The nomination was confirmed. STATEMEN"I'OF HON. CECIL D. ANDRUS, GOVERNOR I intend to vote for your confirmation. But Mr. ROBERT C. BYRD. Mr. President, OF IDAHO, TO BE SECRETARY OF THE INTERIOR having said that, I think I ought to advise I ask that the President be immediately Mr. Chairman, Distinguished Members of you of my thinking because I don't want notified of the confirmation of the the Senate Interior Committee, and other to spend your next fo'lll" years, maybe my nomination. Distinguished Guests: January 20, 1977 CONGRESSIONAL RECORD- SENATE 1867 My name is Cecil D. Andrus. I presently patible with the intent of the multiple use 1. List sources, amounts and dates of all hold the Office of Governor of the State of concept. anticipated receipts from deferred income Idaho. I have been Governor for the past six In the era just beginning, I hope that arrangements, stock options, uncompleted years. confusion a.bout the meaning of multiple use contracts and other future benefits which I am deeply honored to have been nomi will be resolved. you expect to derive from previous business nated by President-elect Carter to be Secre It will be, if we get the broad vision of relationships, professional services and firm tary of the Interior. I am aware of the re those who can see the entire horizon; not memberships or from former employers, sponsibilities given to the Secretary in ad the tunnel vision of those who see only clients, and customers. ministering the duties of the Interior Depart the portion of the horizon that is desirable Answer. I participate in the State of ment. I am hopeful that you will judge my to them. Idaho's Pension Plan. The value of my con background and experience as a western Gov In essence, we can, and we must, make tributions to the Plan (as of January l, ernor as positive qualifications for the Secre certain that our natural resources are de 1977), is approximately $12,850.00. Under the tary's position. veloped or not developed for the benefit of Plan, I have earned an accrued retirement I do not view my selection as a mandate everyone and through such use, keep our benefit at age 65 of $680.65 per month. The to d'o as I please anymore than I viewed my nation strong and our quality of life high. total potential value of my retirement bene election as Governor to be a mandate of this I am pleased to be part of the new Admin fit at age 65 is $121,537.00. I intend to main type. Rather, I accept it as an obligation to istration, particularly when our next Presi tain this retirement program. A total lump work with the President, the Congress, and dent is a man who himself personnally has sum settlement is not available to me at the the people in making the tough decisions and been involved in the protection of the her present time under this pension plan. hard choices facing this nation. itage of America. We can all look forward to 2. Are any assets pledged? (Add schedule.) The Department of the Interior, more than his personal involvement in decisions we Answer. Yes. 2,000 shares of common stock any other Department or agency of the Fed make to protect clean air, clean water and of Sunshine Mining Company. eral Government, can best be- called the uncluttered landscapes, but yet at the same 3. Are you currently a party to any legal stewaJ"d of our resource heritage. It ls a her time providing a progressive society where we action? itage given us to use and to enjoy wisely, and can all make a living and have a living that Answer. I am a party to various legal ac yet to protect and pass on to future genera is worthwhile. tions in my capacity as Governor of Idaho. tions. I look forward to serving the American peo I am not involved in any legal actions per The Department is not only the steward of ple. It is a noble challenge to attempt to sonally. the country's natural resources, but also dis maintain that delicate balance between prog 4. Have you ever declared bankruptcy? charges trust responsibilities for large num ress and preservation. With your guidance Answer. No. bers of people. and support, we are going to get the job done. AFFIDAVIT I take these people responsibilities very On January 18, 1977, the committee heard ------, being duly sworn, hereby seriously; they will have a high priority in testimony from representatives of the fol states that he/she has read and signed the my administration of the Department. lowing organizations: National Congress of foregoing Financial Statement and that the As Governor of Idaho, I consistently American Indians, Sierra Club, American information provided therein is, to the best stressed one theme-that we must protect Horse Protection Association, Alaska Federa of his/her knowledge and belief, current, ac the quality of life we have in Id's.ho-and I tion of Natives, Inc., U.S. Labor Party, Fusion curate, and complete. have had full support of the people of Idaho Energy Foundation, and Defenders of Wild-, CECIL D. ANDRUS. on that concept. life. Subscribed and sworn before me this --- If I am confirmed, my goal as Secretary of FINANCIAL STATEMENT AND ADDITIONAL day of ------, 19 ... the Interior will be to protect a.nd enhance INFORMATION ------. the quality of life for all in the United States. Notary Public. The committee rules require each Presi In Idaho, we have found ways to protect STATEMENT FOR COMPLETION BY PRESIDENTIAL the environment while selectively developing dential nominee to submit a financial state ment sworn to by the nominee as to its com NOMINEES our mineral wealth; to set aside wilderness Name: Andrus, Cecil Dale. areas while at the same time harvesting pleteness and accuracy. Mr. Andrus agreed to the committee's request that his own :fi Position to which nominated: Secretary of timber; and to manage our rangeland not the Interior. only for livestock but for wildlife and other nancial statement be made public. A copy of the statement and the nominee-designate's Date of nomination: January 20, 1977. resource values as well. Date of birth: August 25, 1931. You should know that I believe that con responses to a standard series of specific questions is set forth below: Place of birth: Hood River, Oregon. servation is no longer a pious ideal, it is an Marital status: Married. element of our survival. Many resources are Financial statement of Cecil and Carol Full name of spouse: Carol M. Andrus. limited and' precious. My efforts will be fo Andrus,1 December 31, 1976 Name and ages of children: Tanna Lee, 25; cused on curbing old habits of over Assets: Tracy Sue, 20; and Kelly Kay, 16. consumption and misuse, seeking instead to Cash on hand and in banks ______$3,500 Education: use less and to use better. U.S. Government securities: Eugene, Oreg.; high school, 1943-48. I share the deep concerns of our citizens Listed securities ______23,000 Oregon State University, 1948-49. Degrees who want to know what our nation will be Unlisted securities ______18,850 received none. Honors and a.wards: like when our children and grandchildren Real estate interests, including Honorary Doctorate of Law, Gonzaga Uni reach adulthood. mortgages------45,000 versity. I support and believe in the National Park Personal property ______20,950 Honorary Doctorate of Law, University of System and the Wild and Scenic Rivers of Life insurance--<:ash value ______3, 300 Idaho. this Nation. Parks, wilderness and wild rivers Other assets: State of Idaho Pen- Idaho Man of the Year, 1971 and 1972. are meaningful gifts for future generations sion Plan Employee Contribu- Ida.ho Conserva.tionist of the Year, 1972. and I intend to advocate these programs on tions ------12,855 Many other lesser awards as Governor. behalf of the American people. Memberships: It is only in recent years that we have Total assets ______127,455 Veterans of Foreign Wars, past commander. come to realize that too much of our environ American Legion, AF/AM Lodge 69, oro- ment has been wasted or destroyed or mis Liabilities: :fino, Idaho. used-and that we have not been good Notes payable to others______10, 000 El Korah Temple, Boise, Idaho. stewards. Accounts payable ______B.P.O.E. Lodge 96, Lewiston, Idaho. Only as we began to near the end of the Unpaid income tax 2 ______840 The Poachers Club, Boise, Idaho. second century of this Nation's history did Other unpaid tax and interest. __ Ducks Unlimited. we begin to realize that we had been fore Real estate mortgages payable____ 7, 800 Arid Club, Boise, Idaho. closing an option that we should have been Chattel mortgages and other liens Crane Creek Country Club, Boise, Idaho. saving for our children and grandchildren payable------~--- 1,000 Hillcrest Country Club, Boise, Ida.ho. the option to place high values on clear air, Other debts: Household ex- Idaho Taxpayers' Association. on pure water, on wildlife, on outdoor recre penses ------200 Board of Directors of Idaho Youth Ranch. ation, and on unscarred nature. We were Employment record: taking away from generations yet unborn Total liabilities______19, 840 1951-55-U.S. Navy. the ability to make important decisions 1955-61-TRU-CUT Lumber Co., Orfino, about their stewardship of the land, the Net worth ______107, 615 Idaho, Lumberjack, woods work, equipment operator, sawmill construction, millright, water and the air. 1 Carol Andrus and her sister, Sally Boure I am hopeful that we are now entering an gols, are Co-Guardians for their Mother, production manager. era when the concept of multiple use will Mild.red May. In that capacity, they are re 1961-63-Self-employed-Small wood by be better understood. sponsible for the management of their products firm. That has not always been the case. Motiher's assets totaling approximately 1963-67-Assistant Manager, Workmen's The problem is that multiple use does not $85,000. All of these funds are invested in Compensation Exchange, Lewiston, Idaho. mean that every acre should be logged, mined time certificates of deposit. Managed self-insurance programs for Idaho or grazed. Some areas are best used for one 2 State and Federal taxes for 1976 which firms in the lumber and logging industry. purpose, some for another. And, this is com- are due and payable Apr. 15, 1977. 1967-7o-General Manager for the State of CXXIII--118-Part 2 1868 CONGRESSIONAL RECORD-SENATE January 20, 1977
Idaho for the Paul Revere . Insurance Com SCHEDULE OF LIABILITIES vestments and the status of operations at the panies. Home office in Worcester, Massachu Notes payable: Piper, Jat!ery, a respective companies; provided, however, setts. brokerage fl.rm. This ls a margin that all of said securities shall be sold no 1970-77--Governor of the State of Idaho. loan secured by 2,000 shares of later than six months from the date hereof. Government experience: Sunshine Mining Co. stock______10, 000 (2) The proceeds of the sale of said securi Member of Idaho Senate, 1961-67; 1969-70. Real estate mortgages: Balance pay ties shall be reinvested by the Trustee, in its Governor of the State of Idaho from Janu- able to Floyd Loomis, Cascade, isole discretion and Without consultation ary 4, 1971 to the present. Idaho, under a real estate pur- with or notification to Settlors, in any one President of the Idaho State Land Board 1 chase contract ------7,800 or more of the following: 1971-77. Served on many other boards and Chattel Mortgages, etc.: Automobile (a) certificates of deposits issued by com commissions as Governor of Idaho. loan payable to Idaho Bank & mercial banks; Chairman of the Federation of the Rocky Trust Co------1,000 (b) instruments of the United States Mountain States, 1972-73. 1 Chairman of the National Governors' Con I own approximately Ys acre of land in Government; ference, 1976-77. Valley County, Idaho, adjacent to the Cas (c) well diversified, no load, mutual funds. cade Reservoir. The land was purchased from Published writings: Inaugural Addresses, Article VI 1971 and 1975, published in "Great American Lloyd Loomis and a summer cabin was con structed on the site several years ago (value During the existence of this Trust, the Speeches"; other articles in various periodi Trustee shall not provide Settlors with any cals in my capacity as Governor. $45,000). A'ITACHMENT 2 listing or accounting of the investments Future employment relationships: held in Trust provided, however, that Trustee 1. Indicate whether you will sever all con I wlll divest myself of all mining stocks listed in Attachment 1. The values of these shall provide Settlors annually and at such nections with your present employer, busi other times as Settlors may request, the ness firm, association or organization if you securities are currently depressed because of a strike a.t the Sunshine Mine. Conse total market value of the Trust assets. Trus are confirmed by the Senate. tee shall also provide to an accountant desig Yes. quently, I will place these securities in a blind trust with instructions to the Trustee nated by Settlors such information as may 2. As far as can be foreseen, state whether be necessary for the preparation of Settlors' you have any plans after completing govern to sell these securities in an orderly way, with sales to be complete no later than six tax returns. ment service to resume employment, affilia Article VII tion or practice With your current or any months from the date of my confirmation. previous employer, business firm, association A copy of the Trust ls attached. In extension and not in limitation of the or organization. APPENDIX C powers given by law or other provisions of None. this Trust, Trustee shall have the following Trust agreement powers with respect to the Trust created 3. Has anybody made you a commitment to We, Cecil D. Andrus and Carol M. Andrus, a job after you leave government? hereby and to the Trust property, to ·be ex husband and wife of Boise, Ada County, ercised from time to time in the discretion No. Idaho (hereinafter call~ "Settlors"), hereby 4. Do you expect to serve the full term for of the Trustee, without order or license of assign, set over, a.nd transfer unto the Idaho Court and Without the knowledge or consent which you have been appointed? Bank a.nd Trust Company, Boise, Idaho, all Yes. of Settlors: of our interest in and to the marketable (1) To sell, exchange, transfer, convey and Potential conflicts of interest: securities listed on Exhibit A attached hereto 1. Describe any financial ararngements or make contracts concerning the Trust prop and incorporated herein, to hold the same erty for such considerations and upon such deferred compensation agreements or other as Trustee in Trust as hereinafter provided. continuing dealings with business associates, terms as the Trustee may determine; to ex clients or customers who will be affected by Article I ecute any instruments with regard thereto. policies which you will influence in the po Settlors reserve the right at any time or (2) To hold bonds, shares, or other securi sition to which you have been nominated. times after six months from the date hereof, ties in bearer form, or in the name of the None. to amend, alter or revoke this trust, in whole Trustee or in the name of a nominee, with 2. List any investments, obligations, lia or in part, or any provision hereof, by an out indication of any fiduciary capacity. b111ties, or other relationships which might instrument in writing signed by either of (3) To deposit cash in a checking account, involve potential conflicts of interest with the Settlors and delivered to the Trustee savings account or certifications of deposit the position to which you have been nomi during the lifetime of such Settlor. in a bank, including the Trustee bank, With nated. Article II out indication of any fiduciary capacity. Shares of stock in the various mining com During the existence of this Trust, the Trustee shall have custody of all Trust assets. panies listed on attachment 1. Trustee shall pay the net income of the (4) To give general or special proxies or 3. Describe any business relationship, Trust to the Settlors at least as often as powers of an attorney for voting or acting in dealing or financial transaction ( other than quarterly. Upon the death of a Settlor, the respect of shares of securities which may be taxpaying) which you have had during the income thereafter shall be so paid to the discretionary and with power of substitu last 10 years with the Federal Government, survivor. tion. whether for yourself or relatives, on behalf Article III ( 5) To employ and pay custodians of Trust of a client, or acting as an agent, that might Upon the termination of this Trust for any property, brokers, agents and attorneys. in any way constitute or result in a possible reason whatsoever, the Trustee shall pay Article VIII conflict of interest With the position to which the then remaining principal and any un you have been nominated. The following provisions shall apply to the distributed net income of the Trust, as extent that they are not inconsistent with None. follows: 4. List and describe any lobbying activity a.ny of the preceding articles: (1) To the Settlors jointly, if both Settlors ( 1) Income or principal payable to any during the post 10 years in which you have are then 11 ving; engaged for the purpose of directly or in minor or to any other person who in the directly influencing the passage, defeat or (2) If only one Settlor ls then living, then opinion of the Trustee ls incapacitated modification of any legislation at the na to such Settlor; through illness, age, or other ca.use may be tional level of government or for the pur (3) If neither Settlor is then living, then applied by the Trustee at its discretion for pose of affecting the administration and to the issue of Settlors, then living, per the beneficiary's maintenance, support or execution of national law or public policy. stirpes. education, by direct payment of such bene As a part of my duties as Governor of Article IV ficiary's expenses or by payment to such bene ficiary's legal guardian. Idaho, I have been extensively involved in This Trust shall terminate, thirty days dealing with legislative matters at all levels after the first of the following events to (2) Whenever distribution is to be made to of Government. occur: designated "issue" on a per stlrpes basis, the 5. Explain how you wm resolve any poten property shall be distributed to such persons ( 1) upon revocation of the Trust as pro tial conflict of interest that may be disclosed by right of representation and not per capita. by your responses to the above items. vided in Article I hereof; ln Witness Hereof, Cecil D. Andrus and (2) upon the death of Cecil D. Andrus; See attachment 2. Carol M. Andrus, Settlors, have hereunto set (3) at such time as Cecil D. Andrus is no ATrACHMENT 1 their hands and seals, and the Idaho Bank longer Secretary of the Interior. and Trust Company, Ada. County, Boise, Schedule of securities Article V Idaho, in token of its acceptance of the (Value at January 1, 1977] During the existence of this Trust, the Trust hereby created, has hereunto set its Shares of common stock and com Trustee shall manage and invest the assets hand and seal, as of this __ day of ------, pany: of this Trust as follows: 1977. Listed: 2,000, Sunshine Mining ___ $23-, 000 (1) The marketable securities listed in CECIL D. ANDRUS, Unlisted: CAROL M. ANDRUS. 6,000, Silver Syndicate______13, 500 Exhibit A attached hereto shall be sold by the Trustee in an orderly manner in such IDAHO BANK AND TRUST COMPANY, BOISE, 25,000 Silver Buckle Mines_____ 2, 250 !DAHO. 40,000, Placer Creek Mining____ 1, 600 a way as to realize the best possible price By----. Investors Diversified Services for such investments taking into account Attest: Mutual Fund ------1, 500 the limited markets for some of such in------. January 20, 1977 CONGRESSIONAL RECORD- SENATE 1869 ExHmIT A-Shares of common stock Mr. JAVITS. Mr. President, I support larly, he is highly regarded as an individ Company: the nomination of Michael Blumenthal. ual sensitive to the concerns and needs Sunshine Mining------2, 000 I would not take the Senate's time if I Silver Syndicate______6, 000 of working people. Silver Buckle Mines ______25, 000 did not fully know him but also worked Not only will Mike Blumenthal provide Placer Creek Mining ______40, 000 with him during his work in Europe in an important bridge between interest connection with the European commu groups that are sometimes at odds, he CONFLICT OF INTEREST nity and the tariff and trade problems will be a forthright member of the As indicated in Attachment 2 of the in which exist there. formation submitted above, Governor An Cabinet who commands respect abroad as drus agreed to di vest himself of all mining He brings with him an unusual dimen well as at home. The respect that Mr. stocks by placing the securities in a blind sion of experience, skill, and very high Blumenthal commands abroad, largely trust with instructions to the Trustee to standing with the leaders of Europe who on the basis of his role as chief U.S. sell them in an orderly way, with sales to be have negotiated with him. I believe that negotiator at the Kennedy round of completed no later than six months from the his appointment is one of the very fine tariff negotiations in the 1960's, is ex date of his confirmation. The committee ac appointments that have been made in tremely important because of the im cepted the Governor's actions as a method to the course of the history of this office. I portance of international economics and avoid the appearance of any conflict of in commend it highly to the Senate. terest, and in view of the uncertain market foreign trade to U.S. foreign policy in the for the securities involved, extended the time Mr. MOYNIHAN. Mr. President, I years ahead. for divestment to nine months. support the nomination of W. Michael Increasingly the issues that confront CONCLUSION Blumenthal. our Nation in its relations with both our The Committee agrees that Governor An I had the privilege to serve with him allies and our adversaries are economic drus is qualified in all respects to serve as on a three-man group that negotiated issues. Under those circumstances we Secretary of the Interior and recommends for President Kennedy the long-term could scarcely hope for a more qualified that he be confirmed by the United States cotton textile agreement of 1962. person to serve as Treasury Secretary Senate, if nominated. Mr. Blumenthal is known, properly so, than Mike Blumenthal. Not only has he Mr. McCLURE. Mr. President, I would as a man greatly and wholly committed received both his undergracuate and like to second what the distinguished to the principles of expanding world graduate degrees in international eco chairman of the committee has said. trade. Yet, on that occasion he showed nomics, he has directed a major interna a most vigorous concern for the jobs of tional corporation. As members know, the nominee is the Among the more difficult tasks that the Governor and has been the Governor of American workers who were in situa tions of particular disadvantage and Secretary-designate will face 'Vill be the my State. But beyond that, I have known fulflllment of President Carter's pledge him for a number of years, having been need. He carried out that assignment by President Kennedy with the greatest to achieve thoroughgoing tax reform. As elected to serve in the State legislature President Carter has said, this is an issue at the same time in 1961 and having distinction. One of Mr. Blumenthal's monuments, about which we have talked the most and worked with him. about which we have acted least. I am I was pleased to appear before the we might say, was the Trade Expansion Act of 1962, which has served world hopeful that the Carter administration committee as a witness on his behalf, will finally end the lipservice and pro and I certainly support this nomination. trade well and has served this Nation well. vide the action necessary to correct gross I believe it was a fine choice on the part inequities in our tax system, and look to of the President. Mr. JACKSON. Mr. President, I have Secretary-designate Blumenthal to pro The PRESIDING OFFICER. The ques known W. Michael Blumenthal since he vide key leadership in this regard. tion is, Will the Senate advise and con served as President Kennedy's trade ne I look forward to Mr. Blumenthal's sent to the nomination of Cecil D. Andrus gotiator. Mr. Blumenthal certainly has tenure as Treasury Secretary with great to be Secretary of the Interior. unique qualifications. He brings to the Treasury Department a background as a optimism, and the sincere conviction that The nomination was confirmed. scholar. He received his Ph. D. in inter his selection by President Carter will Mr. ROBERT C. BYRD. Mr. President, national trade at Princeton University. prove to be one of the best, early decisions I ask that the President of the United of the new administration. I am de States be immediately notified of the He has been an outstanding and a lighted to advise and consent to Mr. confirmation of the nomination. most effective business leader of the Na Blumenthal's confirmation. tion. He has a keen understanding of la The PRESIDING OFFICER. The The PRESIDING OFFICER. Without bor-management relations. He has a objection, the President will be notified. question is, Will the Senate advise and keen understanding of economics. I be consent to the nomination of W. Michael lieve he will bring to the Treasury a Blumenthal to be Secretary of the Treas much needed talent, both in the domes ury? SECRETARY OF THE TREASURY tic area of finance-economics and the in The nomination was confirmed. ternational side. I think the Nation is Mr. ROBERT C. BYRD. Mr. President, Mr. ROBERT C. BYRD. Mr. President, most fortunate. I ask unanimous consent that the Senate I ask unanimous consent that the Presi proceed to the consideration of the Mr. BAYH. Mr. President, I am dent be immediately notified of the con nomination of Mr. W. Michael Blumen delighted to lend my strong support to firmation of the nomination. thal. of Michigan, to be Secretary of the the confirmation of W. Michael Blumen The PRESIDING OFFICER. Without Treasury. thal as Secretary of the Treasury. In objection, it is so ordered. recent years Mike Blumenthal has been The PRESIDING OFFICER. The the chief operating officer and then the nomination will be stated. chief executive officer of the Bendix The legislative clerk read the nomina Corp. Because the Bendix Corp. is a SECRETARY OF STATE tion of W. Michael Blumenthal, of Michi major corporate constituent in Indiana Mr. ROBERT C. BYRD. Mr. President, gan, to be Secretary of the Treasury. I was fortunate enough to develop an I ask unanimous consent that the Sen Mr. LONG. Mr. President, the Com acquaintanceship with Mike Blumethal ate proceed to the consideration of the mittee on Finance had the opportunity some years ago. He is a brilliant execu nomination of Cyrus R. Vance of New to inte:·rogate Mr. Michael Blumenthal tive. a compassionate human being, a York-of West Virginia-to be Secretary in depth. Almost all members of the respected economist, and a public servant of State. committee were present. Each member of proven skills. The PRESIDING OFFICER. The interrogated him on about threa occa The nomination of Secretary-designate Senator may designate the residence of sions, and we were enormously impressed Blumenthal by President Carter is strong the nominee. by Mr. Blumenthal. The Senate has read testimony to the fact there not be the Mr. ROBERT C. BYRD. West Virginia. about his life. It is a modern Horatio traditional tension between the business The PRESIDING OFFICER. The Alger story and an inspiration to all community and those concerned with nomination will be stated. members. providing necessary public services to the The legislative clerk read as follows: The vote of the committee was unani American peoi:,le. The Secretary-desig The nomination of Cyrus R. Va.nee, o! mous. We recommend that his nomina nate has earned a just reputation as a New York and West Virginia, to be Secretary tion be confirmed. businessman of great acumen. Simi- of State. 1870 CONGRESSIONAL RECORD-SENATE January 20, 1977 Mr. SPARKMAN. Mr. President, I do known Cyrus Vance as long as my dis his responses indicated that he has a not want to enter into debate as between tinguished colleague from New York has, detailed grasp of every facet of the De West Virginia and New York. but it has been my pleasure to have partment of Agriculture and with the I believe the record shows that our known him for two decades. issues which will face the new Secretary. committee voted to confirm the nomina Henry Kissinger is a hard act to fol Moreover, Secretary-designate BERG tion of Mr. Cyrus R. Vance of New York. low~ but I do not think anyone could have LAND's harmonious relationship with the committee demonstrates the poise and Mr. ROBERT C. BYRD. I withdraw been appointed who would be more per fectly suited for the times in which we skill which he can bring to the leader my reservation for the moment. ship position in the Department of Agri [Laughter. J now live than Cy Vance. The distinguished Senator from Con culture. Mr. SPARKMAN. We had extensive necticut New York City which are the very es The legislative clerk read the nomina Agriculture. sence of what is called decency. tion of BOB s. BERGLAND of Minnesota, Some 17 or 18 Senators interrogated I have had personal contact with him to be Secretary of Agriculture. him for several hours. He responded to as a negotiator for Presidents. He has Mr. TALMADGE. Mr. President, on probably 200 to 300 questions in the area been splendid, always very outgoing and behalf of the Committee on Agriculture of agriculture. Some of them were highly informative, so far as we are concerned. and Forestry, I support the nomination complex, some controversial. I think Senators will find that there are of BOB BERGLAND to be Secretary of Agri The nominee displayed enormous very few secrets with Cyrus Vance-cer culture. knowledge of every facet of American tainly, from us. On Tuesday, January 11-, 1977, the agriculture. To fill the shoes of Henry Kissinger, committee voted without objection to au He himself is a farmer, the first farm one of the most brilliant and historic thorize the Chair to inform the Senate, er that has been nominated for the Sec Secretaries of State we have ever had, at such time as the nomination is re retary of Agriculture in more than 20 is an enormous job. Yet, considering the ceived, that the committee recommends years, since I have been a Member of the style of President Carter, which is very confirmation. Senate. different from the style of former Presi Permit me to add that the committee's For the past· 6 years he has been a dent Ford and former President Nixon, I recommendation is an enthusiastic rec member of the House Committee on believe that Cyrus Vance, within that ommendation. Agriculture and Forestry. context, can be as historic-not neces For nearly 4 hours, Secretary-desig Most of the members of our committee sarily the same. not necessarily the same nate BERGLAND met with the comm~ttee, are acquainted with him, having dealt style, but as historic-and brilliant a and responded to questions from 17 Sen with him in conferences between the Secretary as was Henry Kissinger. ators. It is likely that more than 200 Senate and the House of Representa Mr. PERCY. Mr. President, I have not questions were put to BoB BERGLAND, and tives. He is a man of enormous ability, January 20, 1977 CONGRESSIONAL RECORD- SENATE 1871 enormous capacity. Our committee voted Juanita M. Kreps, of North Carolina, to national affairs, their decisions could be unanimously to recommend to the Sen be Secretary of Commerce. crucial to the future survival of our Na ate that his nomination be confirmed, The PRESIDING OFFICER. The nom tion. Without assured national survival, and I urge the Senate to do so. ination will be stated. all of our hopes and dreams will be in Mr. HUMPHREY. Mr. President, I The legislative clerk read the nom vain. shall just take a moment of the Senate's ination of Juanita M. Kreps, of North President carter, if I understood him time. Carolina, to be Secretary of Commerce. correctly, has promised us a new spirit, I thank the distinguished chairman of Mr. MAGNUSON. Mr. President, the a new commitment, a new America. To the Committee on Agriculture and For Committee on Commerce held extensive millions of southerners who believe in a estry, the Senator from Georgia ROBERT BERGLAND. mous. We found her to be a woman of mean an end to the trends that have I have known Mr. BERGLAND for ap great experience, great capabilities, and dominated our conduct of foreign affairs proximately 20 years, and I have known I am sure that she is going to make a for years--the tendency toward conces him not only as a man in public life, good Secretary of Commerce. session and surrender of our rights and but as truly a fine gentleman, a good I ask unanimous consent that other of our leadership role, the giveaway of family man, and as has been said here, members of the Committee on Commerce our assets, and the erosion of our mili a farmer, a family farmer, from the as well as the Senator from North Caro tary strength. Many believed that Presi northern part of our State, who has lina be permitted to have their remarks dent Carter would put an end to the ero understood the pains and the sufferings printed in the RECORD on this nomina sion of our strength and leadership. o! people in rural America as well as tion. But no sooner was the President some of the achievements and accom The PRESIDING OFFICER. Without elected than he began to sound different plishments of family farmers. objection, it is so ordered. themes-themes hardly different from Mr. BERGLAND also has had experience Mr. JACKSON. Vote. those of preceding Presidents. He ap in the administrative areas of agricul The PRESIDING OFFICER. The Sen pears to be ready, now, to give away the ture, having served for some years as a ator from North Carolina. Panama Canal. He is anxious to conclude member of what we call the ASC com Mr. HELMS. Mr. President, the con a SALT agreement with the Soviet mittee system, the Agricultural Stabili stitutional duty of a Senator to give Union and, indeed, to hasten into com zation Committee, and, as the distin advice and consent to the principal plete nuclear disarmament. He seems guished chairman noted, he served 6 appointments of the President of the prepared to put the squeeze on Rhodesia, years on the Committee on Agriculture. United States is a duty which must be and to force South Africa to knuckle un It is a good appointment. He will do a taken with great deliberation. I have der to the United Nations. remarkable job for us, and I am sure that always attempted to make this duty a If such policies seem no different than the Senate will find out that he is easy serious attempt to assess the value and we had before, and, indeed, even a little to work with, he is a man who is open, meaning of such nominees in the na more hasty in execution, the reason is he is characterized and known for his tional interest. not hard to find. The advisers and integrity and his basic sense of honesty Some Senators have said that they nominees whom he has chosen are and decency. feel that it is their obligation to approve chosen from a rather small group of po I hope the Senate will unanimously the nominee of any President unless that tential candidates. They are chosen from confirm him. nominee is totally disqualified by reason the same circle of Wall Street bankers, Mr. BAKER. Mr. President, I under of grave character defect or dubious lawYers, and establishment professors stand that the distinguished senior Sen conduct. Such a theory seems to hold that has always seemed to dominate our ator from Oklahoma may wish to be that a President has the right to select foreign poacymaking, and, in the opinion heard on this nomination, I believe not persons with whom he is compatible in of the Senator from North Carolina, has in opposition, but to comment on ~. I do temperament and confident in judgment, always dominated it for the worse. not wish to delay unduly, but for the and that such nominees ought to be Once again we get the same old faces, moment I suggest the absence of a approved forthwith by the Senate. the same old jobseekers, the same old so quorum. The Senator from North Carolina does called experts, that this Nation has The PRESIDING OFFICER. The clerk not hold that view. I believe that the learned to distrust from bitter experi will call the roll. constitutional obligation is to give advice ence. Thus we have Dr. Brown, the right The assistant legiSlative clerk pro as well as consent, and I have, on a hand man of Robert McNamara in the ceeded to call the roll. number of occasions and with different Kennedy era; Mr. Vance, who was Dep Mr. BAKER. Mr. President, I ask Presidents, withheld my consent when uty Secretary of Defense under Mc unanimous consent that the order for the ever I thought that an appointment was Namara during the development of the quorum call be rescinded. wrong for the Nation. Sometimes a concept of the no-win war in Vietnam; The PRESIDING OFFICER. Without nominee may be not qualified for tech Mr. Blumenthal, who, as president and objection, it is so ordered. nical reasons, but sometimes a nominee chairman of Bendix, has been a leading Mr. BAKER. Mr. President, it is my may be symbolically wrong as well. proponent of trade with the socialist na understanding that the Senator from Therefore, it is not in a spirit of _parti tions, including both the Soviet Union Oklahoma has no further remarks in this sanship or in a desire to contest a new and mainland China; and Mr. Young, respect and whatever remarks he may President that I wish the record to show who began his career under the tutelage wish to elaborate and extend he will do that I am opposed to three of President of organizations officially labeled as sub at a later time. Carter's Cabinet nominees: Cyrus R. versive. The PRESIDING OFFICER. The ques Vance, Harold Brown, and W. Michael Now it is true that men can 1earn from tion is, Will the Senate advise and Blumenthal as Secretaries of State, De their past mistakes; but the statements consent to the nomination of BoB S. fense, and Treasury, respectively. When these men have been making suggest that BERGLAND, of Minnesota, to be Secretary the nomination of Representative An they will continue to make the same mis of Agriculture? drew Young to be Ambassador to the takes under the illusion that they are The nomination was confirmed. United Nations comes up, the Senator achieving success. Dr. Brown seems to Mr. ROBERT C. BYRD. Mr. President, from North Carolina also will vote "nay" think that the cruise missile can be dis I ask unanimous consent that the Presi if a rollcall vote is conducted. pensed with in a SALT agreement; Mr. dent be immediately notified of the con I make these announcements all at one Vance has pledged to give away the firmation of this nomination. time because it is the pattern of the ap Panama Canal as soon as possible; Mr. The PRESIDING OFFICER. Without pointments which is disturbing, as well as Blumenthal has said that his goal is objection, it is so ordered. the individual qualifications of the gen "zero" unemployment, which tends to tlemen in question. All of these will be confirm his subsequent statement that he directly concerned with shaping and ex does not know enough about the causes SECRETARY OF COMMERCE ecuting U.S. foreign policy. They will of inflation; Mr. Young is already acting Mr. ROBERT C. BYRD. Mr. President, help determine our role in the world, and as though he is the Third World Am I ask unanimous consent that the Sen the financial and military security of this bassador to the United Nations, instead ate proceed to the consideration of Nation. In the present disorder of inter- of the U.S. Ambassador, and exhibits no 1872 CONGRESSIONAL RECORD-SENATE January 20, 1977 understanding of the strategic impor the country. He is saying that the elite It is Rockefeller philanthropy. The connec tance of southern Africa to the Soviet will take control away from the people, tion is so compelling in the foreign policy to sphere that a. cynic might suggest that this Union, and certainly to the West. and the President will not be able transition is not so much from Ford to Car It is not simply that I disagree with govern unless he allows the elite t.o make ter, but from Nelson to D~vid. these positions. The fact is that the all the decisions-or, in the professor's American people have a right to expect words: Mr. President, I cannot challenge the something different. They were prom He ha.s to constitute a. broad governing President's right to seek advisers with ised something different, but they are ooa.Utlon of str.ategica.lly located supporters whom he is compatible, men and women getting the same old thing. And it is not who can furnish him with the informa of a liberal political philosophy. Some of just the gentlemen mentioned already; tion, talent, expertise, manpower, publicity, his nominees will exercise independent arguments, and political support which he judgment. I can disagree with such peo we see other reruns from the past such needs to develop a program, to embody it as Joseph Califano, Zbignicw Brzezinski, ple and know that I and others of all in legislation, and to see it effectively im philosophies will get a fair hearing. I Charles Shultze, Paul Warnke, and The plemented." odore Sorensen, now withdrawn. was delighted, for example, to join in What is happening is that the will of Mr. President, words were never commending the nomination as Secre the people is being set aside, now that clearer than these t.o explain what is al tary of Commerce of Mrs. Juanita Kreps, the election is over, and a few Wall ready happening to the Carter admin a distinguished North Carolinian, who is Street bankers, foundation heads, estab istration; it is even more remarkable able, dedicated, and conscientious. I ex lishment lawyers, well-paid professors, that they were written almost 2 years pect that Thomas B. Lance will have a and directors of multinational corpora ago. This so-called governing coalition distinguished career at the Office of tions are being brought in to control the as opposed to what the voters wanted Management and Budget. Dr. James R. Nation. It is an interest group that seems has seized control. The very narrow base Schlesinger is an able man who was in long ago to have given up on America, of this so-called governing coalition is explicably rejected by the previous -ad and seeks to have our independence sub seen in the closely knit group of friends ministration~ I do not anticipate that I ordinated to international trade and and acquaintances involved in the selec will agree with everything that such pub monetary agreements, multinational car tion process. lic servants will propose, but I know that tels, arms control, and restricted com For example, the Trilateral Commis their proposals will be based upon their modity distribution arrangements. sion, which is just one organiza"tion in- understanding of the Nation's needs. volved, has but 65 American members; Mr. President, it may be that some will The role of the people-that is, the yet those 65 include the President him feel that the Senator from North Caro electorate-in this process was described self_, the Vice President, the Cabinet lina has been speaking too candidly of as "irrelevant" over 2 years ago by Prof. nominees just mentioned, and nearly a the President's nominees. I want to make Samuel P. Huntington of Harvard Uni dozen others who have been named or it clear that I am not opposing them for versity. ''Irrelevant" is the word, Mr. talked about for high position including personal reasons. But just as I was President, used oy Professor Huntington Professor Huntington. In fact, it is not strongly opposed to the policies of former who is even now being considered for just that the Secretaries of State. De Secretary of State Kissinger-because high-level positions in the Carter ad fense, and Treasury were all members of they represented the policies of this ministration-perhaps even for Deputy the Trilateral Commission; the runners small establishment elite-so, too, I must Secretary of Defense; yet his arrogant speak out against the continued control contempt for the ordinary voter is evi up in the competition for those posts were also members of the Trilateral of our national destiny by such a tiny dent in his statement to the so-called Commission. inbred group. Wfth a change of per~ Trilateral Commission organized by sonalities, there naturally may be shifts David Rockefeller: But the Commission itself is probably irrelevant to the process of selecting of emphasis or tone. But there certainly Since the 1930's . . . the demands on will be no basic shift of direction, no new government have grown tremendously and from such a narrow base. The network the problems of constitutlng a governing of friends, decisionmakers, and power spirit, no new commitment in foreign coalition ha.s mtlltiplied commensurately. In brokers that has grown up in past dec policy. The Senator froni North Carolina, deed, once he is elected President, the Presi ades is in itself small. The result ha.~ therefore, cannot appear to agree to dent's electoral coalition has, in a sense, been well described recently by William these nominations as they are being served its purpose. The day after his election Greider, one of the more independent hastily approved by voice votes. the size of his majority is almost--if not and perceptive reporters now writing for Mr. BA YH. Mr. President, it is with entirely-irrelevant to his ability to govern -great plea.sure that I will vote to con 'the country. What counts then is his ab11ity the Washington Post. Mr. Greider writes: to mobilize support from the leaders of the The Democratic Pa:rty traditionally ha· firm the nomination of Juanita Kreps as key institutions in society and government. :rangues big business during campaign, but Secretary of Commerce. Her unanimous He has to constitute a broad governlng coali then turns to Wall Street and corporate approval on Wednesday by the Senate tion of strategically located supporters who boardrooms in search of administrative Commerce Committee is an indication of can furnish him with the information, tal talent. Carter may have taken this practice the high level of confidence in this ex ent, expertise, manpower, publicity, argu a bit further than his predecessors. cellent Cabinet appointment. ments, and political support which be needs Two of his lawyers, for instance, a.re from I am particularly pleased with Dr. to develop a program, to embody it in legis law firms which have represented General Kreps' appointment, not just because lation, and to see it effectively implemented. Motors (Bell and Sorenson) and two are from This coalition . . . must include key people firms which represent Coca-Cola (Bell and she is a symbol of the President's prom in Congress, the Executive Branch, and the Califano). ise to seek out and appoint women to private Establishment. The governing coaU The Coca-Cola. connection demonstrates his Cabinet, but because she is also r~p tion need have little relation to the elec what a. small world Carter has selected from. resen ta ti ve of his other campaign com toral coalition. The fact that the President Carter's good friend in Atlanta. is J. Paul mitment-to seek out the best. as a candidate put together a successful Austln, chairman of the Board of Coke. Coke Dr. Kreps' testimony before the Sen electoral coalition does not insure that he is represented in Atlanta. by Griffin Bell's law Will have a "Viable governing coalition. ate Commerce Committee on a broad firm. Austin serves on the board of Cal Tech. range of issues reflects her career-long this is The president of Cal Tech is the new Secre Mr. President, one of the most tary of Defense. The new deputy se<'.retary devotion to social concerns. Her assur remarkable statements I have seen ex of defense is the former president of Coke. ance before the committee that the plaining what happens after every elec Coke's lawyer in Washington is the Secretary Commerce Department under her direc tion, including the most recent. Notice of HEW. tion would be more gen~rous in admin carefully what Professor Huntington It that leaves you a bit dizzy, drink a Dr. istering Federal economic development says: Pepper and consider the Carter admlnistra and public works jobs programs; her Once he is elected President, the Presi tion 's connections wlth important institu commitment to an environmentally dent's electoral coal1tion has, in a sense, tions of the news media. The Secretary of sound oceans policy; her stress -0n~ sup State-designate is a director of the New York served its purpose.... The governing coali porting the interest of consumers in the tion need have little relation to the electoral Times. The Secretary of HEW-designate is marketplace, all show her determina coa.li tion. lawyer for the Washington Post. The Secre tary of Defense-designate is a director of the tion to revitalize the goals of the De What he is saying is that once the Los Angeles Times. partment. Perhaps most significant was election is over, the people no longer The most interesting linkage among these Dr. Kreps' pledge to -support legislation have- any right or any say in governing people is neither soft drinks nor newspapers. which would ba.r U.S. companies from January 20, 1977 CONGRESSIONAL RECORD- SENATE 1873 cooperating in any way with the Arab SECRETARY OF HOUSING AND one who ca_n do the job and who knows boycott of Israel. URBAN DEVELOPMENT from e~penence the economic as well as " Juanit_a Kreps is used to being the Mr. ROBERT C. BYRD. Mr. President, the social consequences of housing. first woman to." She was the first wom For all their fine qualities neither Mr. an to serve on the board of directors of I ask unanimous consent that the Sen ate proceed to the consideration of the Lyn~, n?r Mrs. Hills had that experience the New York Stock Exchange. She has o: wmnmg record in housing. They had been the first and frequently only wom nomination of Patricia Roberts Harris of to virtually no experience. The result: they an ~ serve on the boards of some of the the District of Columbia, be Secre~ry of Housing and Urban Development. did not and they could not sell to the Nation's largest industries. Throughout President a vigorous housing program her career, she has demonstrated an in The PRESIDING OFFICER. The nom ination will be stated. even though the times called out for it. dependence of thought and commitment And wp.ile I hope Mrs. Harris will suc to serve the disadvantaged in the mar . The legislative clerk read the nomina ti?n ?f Patricia Roberts Harris, of the ceed where her predecessors failed I ketplace-particularly women and mi doubt if she will, because she too-for.all norities. In addition to her corporate Distnct of Columbia, to be Secretary of Housing and Urban Development. her fine qualities also has no real record and academic posts at Duke University, in housing. she has served on the National Coun M:.. PROXMffiE. Mr. President, Patricia Roberts Harris came before the Anyone who thinks we will not have cil on Aging, the North Carolina Man this kind of problem with President Car power Commission, and the National Committee on Banking for confirmation and I speak in two capacities. ' ter and Mr~. Harris has only to open his Commi~sion for Manpower Policy. When eyes and see what happened with the first she is approved as Secretary of Com Mr. President, with considerable re luctance I rise to oppose the nomination economic package recommended by the merce, she will again be making another President. The purpose of that package historic first--the first woman to hold of Patricia Roberts Harris as Secretary of the Department of Housing and Urban was to stimulate the economy without in that position since the Department was flation. A housing program is tailor created in 1913. I am delighted to have Development. Mr~. Harris has been recommended made for such a purpose. Such a pro an opportunity to confirm her in that gram could provide a million jobs at rela role. to this body by the Banking Committee by a 14 to 1 vote. I was the only mem tively little cost with very little inflation ~r. RANDOLPH. Mr. President, as ary risk and could do the job promptly. chairman of the Committee on Public ber _of ~he committee to oppose the nommation. But where is the housing component in Works it is a privilege to recommend the the 2-year $25 to $30 billion Carter eco confirmation of President Carter's nom I oppos_e . the nomination although Mrs_. Harris 1s unusually intelligent, has nomic program? Answer: it is not there. inee, Mrs. Juanita M. Kreps, to be Sec And who was in the group of economic retary of Commerce. achieved remarkable distinction as a lawy~r, ~as impressive chara~ter, is en advisers that consulted with President The committee has a vital interest Carter and advised him what it should in the Commerce Department and in thusiastically committed to housing and urban development and was a smash hit . con_tain? The Secretary of the Treasury Mrs. Kreps' stewardship. Principal eco designate was there. The Director-desig ~omic development programs are housed in her_ appearance before our Banking Committee at her confirmation hearings. nate of the Office of Management and m that Department, in the Economic Budget was there. The chairman-desig Development Administration as are the Why then do I oppose her? Bec_ause she clearly lacks the housing nate of the Council of Economic Advisers seven,. soon to be eight, title V regional was there. Other advisers and con plannmg commission. These programs experience that I think is commensurate to HUD's success. sultants were there. have been under the jurisdiction of the But Mrs. Harris, the Secretary committee since their inception in 1965. I do this for the same reason I opposed her two predecessors: James Lynn and designate of HUD was not there. So this I attended the Commerce Committee's ~aria Hills. Both had backgrounds sim is not just speculation that Mrs. Harris confirmation hearing of Mrs. Kreps last ilar to Mrs. Harris. Both were brilliant will lack the kind of clout and believa week and I was gratified to hear her say lawyers. Both were bright, hardworking bility to sell the kind of housing program that she considered economic develop people of fine character. But in their ad to the new President. This judgment is ment to be one of the more important ~inistration of HUD the agency failed based in part on the hard fact that functions of the Department of Com dismally to do its job. President Carter has already omitted merce. That, unfortunately, has not The central responsibility for HUD, housing-which should be the center been the case in recent years. Evidence the touchstone by which its success or piece, from his first major economic that she meant what she said seems ap failure can be measured is whether it initiative, and he did so after Mrs. Harris parent from the appointment this week succeeds or fails in building the houses became his prime housing adviser. of Robert Hall to be the new Assistant families with modest incomes in this The principal reason for my opposi Secretary for Economic Development as country need. tion is because I think that Mrs. Harris one of the first sub-Cabinet appoint In the Housing Act of 1968, the Con lacks any significant experience in ments within the Department. gress set a goal of 600,000 such publicly housing. We have had two Secretaries in a row ~ am impressed that Mrs. Kreps has assisted starts per year. The year be quickly grasped the importance of con fore Mr. Lynn took office, 1972 we con now, Mr. Lynn and Mrs. Hills, both of vening a White House Conference on structed 338,000 such starts. Then came whom had the same kind of background Balanced National Growth and Eco the secretaries who were brilliant lawyers and ability as Mrs. Harris. They both are nomic Development by early 1978. but lacked housing experience. Result: fine lawyers, both brilliant scholars, both Members recall that the Public Works 1973, 234,000 publicly assisted housing knew nothing about housing and HUD and Economic Development Act Amend starts; 1974, 84,000; 1975, 56,000; and last is in a shambles and our housing program ments of 1976 that became law on Octo year 1976 for all America's millions of has failed. ber 12, requested and authorized the low- and moderate-income families I think it is vital that we have some President to convene a much needed ~ot th~ 600,000 the law calls for, but an body with experience, with a winning conference on these issues within a year. 11:1cred1ble, pathetic 41,000 publicly as record, not only so that he can do the job Mr. JACKSON. Vote. sisted housing starts from HUD in the in HUD but far more important so they can sell the job to the President of the . Th~ PR~SIDING OFFICER. The ques entire country. W~y this failure? A mp,jor reason, Mr. United States. That is what was lacking tion 1s, Will the Senate advise and con in the Lynn and Hills positions. sent to the nomination of Juanita M. President is that this country needs a Kreps, of North Carolina, to be Secretary Secretary of HUD who not only has the Mrs. Harris may be able to do that but of Commerce? experience, the track record in housing it is iJnteresting that in the one me~ting that Mr. Carter has had to put together The nomination was confirmed. th: knowledge of the programs, th~ painful years of making mistakes as well an economic package there was no hous Mr. ROBERT C. BYRD. Mr. President, as winning successes that alone can ing components. There should have been. I ask unanimous consent that the Presi shape a Secretary that can do the job. It was a serious mistake by the President dent be immediately notified of the con We also need a Secretary in whom the and Mrs. Harris was not there and sh~ firmation of this nomination. President and the President's top eco should have been there. • The PRESIDING OFFICER. Without nomic advisers have full confidence as a So for that reason, I am going to objection, it is so ordered. housing expert with -a winning record- indicate my opposition, although I would 1874 CONGRESSIONAL RECORD-SENATE January 20, 1977 hope that she will be confirmed. I must prevention is essential. But the heart of ground, a much better record of commitment say that I must in all candor oppose the HUD's responsibility !or urban development in this field than either Mr. Lynn or Mrs. nomination. is in publicly assisted housing. Hills. You have given occasional support, In 1968 the Congress decided we needed sometimes significant support, to housing Mr. President, I ask unanimous consent six m1llion such housing starts over the fol and the needs or our cities. You made a to print in the RECORD a copy of my open lowing ten years, or 600,000 per year of pub beautiful and wise statement or dissent on ing statement at Mrs. Harris' nomina licly assisted housing. In 1972 HUD had 338,- civil disobedience a.s a member o! the Com tion hearings. This opening statement 000 such starts, and then came the scholarly mission on Civil Disobedience. But you have spells out in more detail just why I lawyers, the amateurs. The results: 1978 234.- never had anything to do with administer oppose the nomi!nation. And in fairness to 000 publicly assisted housing starts; 1974 ing a. housing program of any kind, or any Mrs. Harris I ask unanimous consent 84,000; 1975 56,000; and this year, 1976, !or size, or administering anything else except that her remarkable and eloquent re all the millions o! low and moderate income Howard Law School for one month, and sponse at the hearings to a question I families-not the 600,000 the law calls !or, a.bout 25 people in the Luxembourg Embassy asked her about the degree of her com but an incredible, pathetic 41,000 publicly for two years. You have no experience as a mitment to underprivileged citizens be assisted housing starts from HUD in the mayor or public official. entire country. You a.re nevertheless going to be con printed in the RECORD at this point, too. Conventional housing has stumbled along firmed-in my Judgment--by this commit There being no objection, the material erratically. The year 1975 was the worst hous tee and the Senate overwhelmingly. Because was ordered to be printed in the RECORD, ing year in the last forty. This year single anyone in the Senate these days who calls as follows: family starts for housing that averaged over for qualifications other than brains and PROXMIRE OPENING STATEMENT AT HEARING ON $40,000 each has been much better; but new character for cabinet officers is regarded a.s CONFIRMATION OF MRS. HARRIS AS SECRETARY housing that the average American can afford somehow unrealistic, and you certainly have OF THE DEPARTMENT OF HOUSING AND URBAN has almost disappeared. both brains and character. DEVELOPMENT It is true, or course, that the failure o! Well, I take the Advice and Consent re Mrs. Harris, we a.re honored to have you be HUD for the last four years has not been sponsibility for this body very seriously. If fore us for consideration or your appoint because o! the character or lntelllgence of the public business is ts to be done efficiently, ment by President-elect Carter to be Secre Lynn or Hills. Indeed, both get high marks we need cabinet officers to handle these tary of the Department of Housing and Urban in both regards. And both may have been multi-billion dollar agencies who are able to Development. reasonably efficient administrators. What hit the ground running: to start right out Frankly, your nomination troubles me. It HUD and the country lacked, and the reason with the confidence that they won't need troubles me although you have an impres housing and urban development have been years o! on-the-Job training. sive record as a scholar, an author, a lawyer, such disaster areas has been because we didn't have in HUD a Secretary with sufficient One final analogy. I'm an enthusiastic foot a person who has been honored by many uni ball fan. I played it in college. I have fol versities with their degrees, a strong and knowledge and experience and a solid enough proven record in housing to be able to go to lowed it for fifty years avidly. I'm reason consistent advocate of civil rights, a fighter ably intelligent. But if I were hired to coach for a better opportunity for minorities and the President and win a vigorous and suc cessful housing program. the Washington Redskins or the Green Bay a record of support over the years for pro Packers, the country would view it as an grams that would help the poor. I a.m confident that either President Nixon or President Ford could have been sold such a outrageous Joke. To coach the Skins or the What troubles me about your nomination Packers you obviously can't even think o! is the absence or any really significant ex program if they had had a HUD Secretary perience in housing or urban development. in whom they had full confidence as a hous taking an amateur; you need a pro. You have no real record on which we can ing expert, a person who had fought !or And yet when the President nominates, Judge your performance. housing and for the cities and had won, a as three Presidents now have, three suc Two years ago when Carla Hills, your pred person who could have argued down Green cessive persons who are bright and scholarly ecessor, was before this committee, she was span and Simon and convinced the President lawyers with no visible record or experience opposed by Mrs. Cushing Dolbeare, who was that it was in the national economic interest in housing and urban development to head head or the National Rural Housing Con to have a vigorous, expansive housing pro HUD-an a~ncy with 15,000 employees and ference. She was opposed on the grounds that gram. a multi-billion dollar budget--and to run the Secretary of HUD should have years of Such a program would have fitted like a a far more complex and important opera experience in housing. Learning is the long, glove the Republican preference !or eco tion than a professional football team. there tough, painful process of making mistakes as nomic activity in the private sector-without ls nothing but warm and happy applause. well as achieving successes. Mrs. Dolbeare inflation and !or economic activity providing And, Mrs. Harris, from the rest of this com said, "It took me at lea.st 10 years before I an urgent need. But neither Hills nor Lynn mittee and the Senate that's about what you felt any real confidence in my capacity to in my view had a sufficiently deep commit can expect to get this morning. This morn make Judgments from conflicting advice and ment to housing and urban development to ing I'm sure you will get only that and I'm conflicting recommendations. Mrs. Hills will make the fight. I think you may have that sure you'll get that from the Senate. As I be given conflicting advice from her own commitment, but what you like Lynn and say. I'm sure you will be confirmed over staff, from industry and from public inter Hills don't have is something else. whelmingly. I'm happy to yield to the rank est groups . . . Then she will be charged Because, Mrs. Harris, with all deference ing Republican member of the Committee, with giving advice and recommendations to to you, and recognizing you may have a more Senator Tower. the President and others in the Administra sympathetic President and economic advisers The Chairman. President-elect Carter has tion, acting as an advocate !or housing. It is o! the President to confront, this selling o! said, "Too often in the pa.st the White House simply not responsible, nor reasonable nor has been surrounded by an impervious ob fair, in my view, to ask any amateur to ~arry the kind o! massive housing program we should have now to the President and his stacle which ls open to those more power out such responsibllities. Being an expert ful and influential. It was not open to the does not necessarily make a person right, but team should be done by someone who knows housing and urban development from long average citizen. It ought to be changed and being an a.ma teur much more likely one will it will be changed 1! I'm elected President." be wrong." experience and with a track record fn the As you may know, James Lynn preceded field that will command attention and ac Mrs. Harris, civil rights and other advo Carla. Hllls as Secretary. Both were brilliant ceptance. Do you have that kind or track cates have frequently complained about their lawyers. Both had 1lne academic back record? Frankly, I can't find it. It won't lack o! access to HUD. You are a person grounds. Neither had any significant back be easy !or you. We already have I think the of great accomplishment but the press re ground or experience or training in housing first major economic mistake by the Presi ports indicate one criticism o! you which or urban development. Both were amateurs. dent-elect. Mr. Carter has already made that you may have noted is you are not a "o!, by I voted against both. And in my Judgment, mistake in announcing his principal two and !or the people" person. That may or may both were failures. yea.r stimulation program and not including not be fair, but they indicate you're not one who has gone out to seek the position After four years of their leadership as suc housing as an integral part of it as a corner cessive Secretaries of HUD, HUD is in a stone in fact. The housing program of sorts and opinion o! the average citizen. As I say, shambles. Its morale is low. Its accomplish may come along today or tomorrow but that's I'd like you to defend yourself against that ments a.re pitifully lna.dequa.te. At a. time not enough. llou ing construction ls a rea charge it that•s not the case, but one of the when our cities constitute perhaps our great sonably quick way to provide jobs in the problems certainly in HUD ls that we have est social-economic problem, HUD, the De private sector at relatively little public cost. somebody who is sympathetic not only to partment with primary responsibility for We should have it as a central part of the the problems of those who are poor and dealing with those problems is sound a.sleep. economic stimulus program. underrepresented, but to listen to them, to A prime responslb111ty for HUD ts to pro .Mrs. Harris, we have tried twice now-for find a way of seeing how they view their vide publicly assisted housing starts for the four years-to turn the management of the problems themselves, to really talk to peo- millions o! American families who can't af Department o! Housing and Urban Aft'airs ple tndlvidua.lly. I'm very sensitive a.bout this ford a home unless the government provides over to brilliant and scholarly lawyers who because all o! us are up here because we're some assistance. This Js also the heart, the were amateurs in the housing field with politicians. We have to get elected. We have cornerstone of urban development. Employ appalling results. to go out and see all kinds of people and ment ts important. Education is vital. Crime In my view, you have a much better back- talk to them. The distinguished Congress- January 20, 1977 CONGRESSIONAL RECORD- SENA TE 1875 man on your left has had that kind of ex Whether I will be the one all the time or of Washington. He was an undergradu perience, too, and perhaps you can reassure whether others will fulfill that function, I ate of the class and top graduate of the me on this. This is one of the things that do not know. troubles me about what I have read about The CHAIRMAN. Well, that's reassuring, Harvard Law School, a distinguished your background. too, and I particularly like the latter point. lawyer, U.S. attorney for the western dis Will you really make an effort to get the I wouldn't expect you, of course, to be able trict of Washington. views of those who are less articulate and less to do that yourself. You'd have to delegate As my co:league pointed out, he served represented and certainly less likely to be much of that authority, but I think it's use on the Interstate and Foreign Com knocking on your door with outstanding ful to hear you will do your best to involve merce Committee in the House. He pio credentials? HUD in the concerns of consumers. I think neered and offered the key legislation in Mrs. Harris. Senator, I am one of them. they have been neglected and find a way to putting together the failing railroad sys You do not seem to understand who I am. have them express their position to those I'm a black woman, the daughter of a din who you will talk to as well as you, yourself. tems in the Northeast. ing car waiter. I'm a black woman who even Not only that, but he was the first eight years ago could not· buy a house in Mr. PROXMIRE. Mr. President, I yield chairman of the Budget Committee. some parts of the District of Columbia. the floor. He is an outstanding economist and Senator, to say I'm not by and of and for Mr. JACKSON. Vote! I think he brings to the office of the De the people is to show a la.ck of understand The PRESIDING OFFICER. The ques partment of Transportation outstanding ing of who I am and where I came from. tion is, Will the Senate advise and con qualifications. The CHAIRMAN. Well, Mrs. Harris, I accept sent to the nomination of Patricia Rob that to a very considerable extent, but I I hope that this vote will be 1mani think you would agree perha.ps-"-if not, I'd erts Harris, of the District of Columbia, mous. like to know whether you disagree-! t's not to be Secretary of Housing and Urban Mr. RANDOLPH. Mr. President, it is a enough to be black or to be a woman or to be Development? privilege for me to have the opportunity poor or to have any particular kind of dis The nomination was confirmed. to join the two able Senators from Wash ability to understand the problem of so many Mr. ROBERT C. BYRD. Mr. President, ington, the chairman of the Commerce people who don't get listened to, don't have I ask unanimous consent that the Presi Committee (Mr. MAGNUSON) and the an opportunity to represent their viewpoint. dent be notified of the confirmation of chairman of the Interior and Insular We have had in HUD a woman, not a black this nomination. woman but a woman, who it has been Affairs Committee (Mr. JACKSON), as pointed out has great abilities and great The PRESIDING OFFICER. Without they speak in positive terms of the ability competence and yet we have this criticism objection, it is so ordered. and experience and understanding of and I think it's a criticism that has some the challenge of the important work that merit and force, that HUD has not been lis BROCK ADAMS will have. tening to people who have these problems. I, too, strongly endorse approval of the Your answer is that you have no problem SECRETARY OF TRANSPORTATION nomination. with this because you're a black woman. Mr. ROBERT C. BYRD. I ask unani Mr. President, the Senate today is Mrs. HARRIS. No, that is not my answer. mous consent that the Senate proceed to asked to confirm Representative BROCK The CHAmMAN. Is that right? What is your the consideration of BROCKMAN ADAMS, ADAMS as Secretary of Transportation. I answer? of Washington, to be Secretary of Trans expect the Senate will give prompt and Mrs. HARRIS. You spoke of the unrepre sented and the poor and I said I'm one of portation. unanimous endorsement to this nomina them. I started, Senator, not a.s a lawyer in The PRESIDING OFFICER. The nom tion of an experienced public leader, to a prestigious law firm, but a.s a woman who ination will be stated. pilot one of our most important depart needed a scholarship to go to college. If you The legislative clerk read the nomina ments. The Public Works Committee has think I have forgotten that, you're wrong. tion of BROCKMAN ADAMS, of Washing jurisdiction over the Federal highway I started as an advocate for a civil rights ton, to be Secretary of Transportation. construction program and certain high agency, the American Council on Human Mr. MAGNUSON. Mr. President, for way safety and environmental aspects Rights, that had to come before this body mer Congressman Adams appeared be to ask for access to housing by members of which complement those construction minority groups. If you think I have for fore the committee on two occasions. activities. In addition, we are associated gotten that, Senator, you're wrong. I have The PRESIDING OFFICER. Will the to a lesser degree with certain transit been a defender of women, of minorities, of Senator suspend while we get order? activities, of which the rural public those who are the outcasts of this society, The Senator may proceed. transportation demonstration program throughout my life and if my life has any Mr. MAGNUSON. He appeared before is an outstanding example. I appreciated meaning at all it is that those who start as the committee on two occasions, and the the opportunity to participate in his con outcasts may end up being part of the sys hearings were very extensive. firmation hearing, before the Senate tem, and I hope it will mean one other thing, Senator, that by being part of the This is a very extensive, complex job, Commerce Committee on January 7, and system one does not forget what it meant to and the committee voted unanimously to to speak on his behalf at this time. be outside it, because I assure you that while approve his nomination. The Members present at Representa there may be others who forget what it I think, if I can sum up what the com tive ADAMS' confirmation hearing were meant to be excluded from the dining rooms mittee felt about Secretary Adams, it unanimously satisfied with his responses. of this very building, I shall never forget it. was that he probably was the most quali Even though some Members disagreed The CHAIRMAN. That's a very reassuring fied nominee for this particular position with him on specific issues, he was felt and inspiring answer. to appear before the Committee on Com to be distinctly well qualified for this po Let me ask you one more specific question. merce since the Department was created. sition. His nomination was favorably re How do you propose to make your Depart ment more open? I have heard some good He brings a background of experience ported from the Commerce Committee words about the recent efforts of Mrs. New in housing, having served on the Com by a vote of 18 to 0. · man to involve HUD consumers in HUD de mittee on Interstate Commerce in the Transportation may be the single most cision making. Would you keep an office like House of Representatives, and had a important developmental aspect of our that functioning? Would you try personally great deal to do with the shaping of pol country over the last 200 years. The to have regular meetings with HUD con icy regarding transportation in this United States is the most mobile nation sumer groups? country. in history, and most Americans enjoy Mrs. HARRIS. Senator, starting this week It was a pleasure for my colleagues and unlimited personal mobility. A good I'm going to be meeting with-what I call for me because he does come from the State transportation network makes it pos lack of a better term--<::onstituent groups of HUD, on the basis I'm not confirmed and I of Washington -to urge his nomination, sible for farmers to get seed to the farm, may not be, but I'm going to start none ar..d the · committee did it unanimously. produce to the market and coal to in theless, because I want to see what it is Mr. JACKSON. Mr. President, will my dustry. A sound transportation system they would like and how they would like to colleague yield? enables families in rural and urban set identify with the office of HUD Secretary Mr. MAGNUSON. I yield. tings to get their children to school, wives and how they would like to relate to the Mr. JACKSON. Mr. President, I as to shopping centers and people to cul office. When I've talked to them, when I have sociate myself with the remarks of my tural, religious and medical facilities. talked with the top sta1f of HUD, I wlll make senior colleague. the judgment about how we can provide Our transportation system moves more that openness which I happen to think is an Former Congressman ADAMS was an goods and people than any other coun essential of government in a. democratic outstanding scholar in college. He gradu try more quickly, more efficiently and society. ated No. 1 out of the entire University more safely. 1876 CONGRESSIONAL RECORD- SENATE January 20, 1977 This is possible because of a number of his leadership in this field, he was ap The PRESIDING OFFICER. The ques of reasons-but the predominant one is pointed by the Speaker of the House to tion is, Will the Senate advise and con the high caliber of people committed to the National Transportation Policy sent to the nomination of BROCKMAN transportation who make up our agen Study Commission. ADAMS to be Secretary of Transporta cies associated with people and product In addition to his experience with tion? movement. The man nominated for our transportation issues, Congressman The nomination was confirmed. next Secretary of Transportation is such ADAMS served as chairman of the House Mr. ROBERT C. BYRD. Mr. President, an individual. Representative ADAMS is Budget Committee during the crucial I ask that the President be notified of considered one of Congress leading ad first 2 years of its existence. His leader the confirmation of the nomination. vocates of a sound, coordinated national ship on this committee contributed im The PRESIDING OFFICER. Without transportation system. measurably to the successful launching objection, it is so ordered. The Secretary-designate served as the of the new congressional budget process. chairman of the House Budget Commit As chairman, he demonstrated his ability OFFICE OF MANAGEMENT AND tee during the 94th Congress, and has to establish spending priorities and co BUDGET been a member of the Interstate and ordinate complex budgetary issues. This Foreign Commerce Committee and its valuable experience will serve him well as Mr. ROBERT C. BYRD. Mr. President, Transportation and Commerce Subcom the head of the Department of Transpor I ask that the Senate proceed to the mittee. Representative ADAMS has been tation. consideration of the nomination of very active in transportation affairs, par I am particularly pleased to be able to Thomas Bertram Lance, of Georgia, to ticularly legislation dealing with rail enthusiastically support this nomination be Director of the Office of Management roads. He is the coauthor of the Regional because as chairman of the Subcommit and Budget. Rail Reorganization Act of 1974, which tee on Transportation Appropriations I The PRESIDING OFFICER. The opened the way to the Government take will be working closely with BROCK nomination will be stated. over and consolidation of eight bank The legislative clerk read the nomi ADAMS. During the 2 years that I have nation of Thomas Bertram Lance, of rupt northeast and midwest railroads chaired this subcommittee, I have be into a unified system. He was one of the come increasingly familiar with the prob Georgia, to be Director of the Office of . congressional members of the National Management and Budget. lem of developing a sensible transporta Mr. NUNN. Mr. President, just a brief Transportation Policy Study Commis tion policy for this country and with sion, a provision of the 1976 Highway word. I do not know if the chairman of BROCK ADAMS' expertise in these complex the committee is here, but Mr. Lance Act. matters. I believe BROCK ADAMS will approach was approved by a unanimous vote of In the more than 100 pages of specific that committee after rather lengthy his duties as Secretary of Transporta responses to questions posed by the Com tion with the same seriousness of pur hearings. pose; the same ability to perceive real merce Committee, BROCK ADAMS dis I have known Bert Lance for a period issues; the same facility for finding an played his continuing commitment to the of years. He comes from a small town, swers to complex problems-in short the goal of a coordinated system of national Calhoun, Ga., where he started as a qualities that made him a key figure in transportation. I share this commitment clerk in a bank there. committee work with which he became and know that we both believe in the He later became president of that bank involved in the House. necessity to work to improve our Nation's and later became president of one of the rail network, to provide efficient, afford larger banks of Georgia. I look forward to working with Repre able mass transportation and to con In addition to that, he was head of the sentative ADAMS in his new role and ex struct and to maintain a safe, efficient Department of Transportation for Gov changing views on such subjects as re highway system. In short, we believe in ernor Carter, now President Carter. He structure of transportation financing, re the importance of the development of a brought to that department a sense of organization of certain transportation balanced national transportation sys management, a sense of planning, a sense policy and regulatory fuctions within and tem so that our citizens, whether they of concise goals, adequate effectiveness without the existing Department of live in the rural, suburban or urban areas and efficiency. Transportation and expediting comple of our Nation, have access to the neces He is a man who is very active in reli tion of our Interstate Highway System. sary transportation modes to move them gious and civic activity. He is a man of Mr. President, during his years in the selves and their goods in the most eff ec integrity. Most of all, I say to my col House, BROCK ADAMS has served trans tive manner possible. leagues, he has an abundance of com portation well. I feel confident that the In order to move toward the realiza monsense and he is the right man for Members of Congress interested in trans tion of these goals, we need decisive the right job. I urge his approval. portation will recognize the Secretary leadership from the Secretary of Trans Mr. CHILES. If the Senator will yield, designate as a man who is both accessi portation. This leadership should include Mr. President, I just wish to associate ble and truly conversant in all areas of a continuing dialog with our citizens, myself with the remarks of the Senator transportation. State and local governments and the from Georgia and say that sitting as a Mr. BAYH. Mr. President, the Senate Congress so that all segments of our so member of the Government Operations is today considering the nomination of ciety are able to participate in the im Committee I had a chance to hear the Congressman BROCK ADAMS for the posi portant decisions affecting the direction testimony and the questioning of Bert tion of Secretary of Transportation in taken by our national transportation Lance. I think he has a remarkable ap the Carter administration. The an policy. BROCK ADAMS made such a com titude for this job. nouncement of BROCK ADAMS' nomination mitment in his opening remarks before I was tremendously impressed by his for this position was greeted with almost the Commerce Committee during his willingness to work with the Congress. universal enthusiasm by those people, confirmation hearing when he pledged As all of us know, the Office of Man both in Government and in the private "to see){ the greatest amount of public agement and Budget has been one in sector, who are concerned with the future comment and advice possible." which many of the holders of that have of this Nation's transportation policy. With his experience in transportation held utter contempt for the Members of Throughout his career in the House of the Congress and really could not find and his willingness to involve the public any real constitutional role that we had, Representatives, BROCK ADAMS has taken in his decisions, I believe that BROCK an active role in the development of ADAMS will be the kind of Secretary of whether it was in management of funds transportation legislation. As the rank or in any other area. ing member of the Transportation Sub Transportation who can make the hard Mr. Lance, I think, shows remarkable committee of the House Interstate and decisions to establish priorities and lead willingness to understand how our sys Foreign Commerce Committee, his legis this country forward to a coherent, effi- tem works and to realize it does work lative skill and vision made innumerable cient, and innovative system of transpor with cooperation. I think we will receive contributions to such landmark legisla tation. I look forward to the opportunity much cooperation from Mr. Lance. I tion as the Regional Rail Reorganization to work with him in pursuing this goal think he has certainly a knowledge of Act of 1973 and the Airport and Airways and am proud to support his confirma reorganization, a knowledge of manage Development Act of 1970. In recognition tion as Secretary of Transportation. ment. January 20, 1977 CONGRESSIONAL RECORD - SENATE 1877 I am tremendously im.r,ressed that the priority document for our Nation. The shown impressive skill in operating a OMB will have a Director who has the one conscious way this country can move middle-size bank. He has been a can knowledge for management and that it as an organized society is through the didate for Governor of Georgia. He will not be only an office for budget. budget. How much or how little stress we headed the transportation department So I join with the Senator from as Americans put on education, on hous in Georgia. And what else? Georgia and urge the confirmation of ing, on defense, on crime prevention, on LANCE' S VERSION OF QUALIFICATIONS Bert Lance. welfare, on transportation, on health, on Mr. President I do not want to be un Mr. TALMADGE. Mr. President, I as economic security is determined by the fair to the nominee so I will let him state sociate myself with the remarks of my budget. his experience, as he did not in an im colleague from Georgia and also the dis And who determines the administra promptu response in a hearing but in an tinguished Senator from Florida. tion's recommendations on the budget? exhibit supporting responses requested in I have known Bert Lance since he was Answer: The President as the part-time advance by the Government Operations a $90-a-month teller in calhoun, Ga., a final authority and the OMB Director as Committee before Mr. Lance appeared town of some 5,000 population. the full-time expert. Sure the President berore the Committee in connection with Later, be became president of that is boss. But the President of the United this nomination. bank. He increased the resources of that States is an overwhelmingly busy man. This was Mr. Lance's response in writ bank from $6 million to $56 million. It He is Commander in Chief of the Army. ing to questions about his experience: probably has more resources of any bank Navy and Air Force. He is our principal My experien<:e includes: in a town of its size in the United States. negotiator with foreign countries. He is a. 25 years in the banking industry, which Some 2 years ago he acquired control the head of the Democratic Party. As any involved employment by a. SII1all bank much ling interest of the National Bank of Member of the Congress who has been of the time and a. larger bank for the last two. Georgia. At that time, the National Bank here any length of time will tell you, he years; of Georgia had resources of a little more is the principal initiator of legislation. b. government service as Commissioner of than $200 million. In 2 years' time he Because he is head of state, much of his the Department of Transportation for Geor gia.; brought the resources of that bank to time must be taken with ceremonial c. political campaigns during which I more than $400 million. breakfasts, luncheons, dinners, visits, learned a great deal about the people of I think that clearly demonstrates that meetings with foreign heads of state. Georgia. he understands something about eco PRESIDENT MUST DELEGATE BUDGET AUTHORITY These experiences have given me consid nomics, banking, and fiscal matters. TO LANCE erable ability in dealing with people and The Government of the United States What this means is that the President handling financial matters. These are the is sorely in need of a man of that' ca matters most involved in the operations of of the United States-in this biggest job the Office of Management and Budget. pacity today. I hope the Senate will in the world-must delegate authority in unanimously confirm his nomination. a big, emphatic way. There is no way the That is it. And Mr. President, that is Mr. PROXMIRE. Mr. President, no President can painstakingly review the an appallingly barren background. Of doubt this nomination will be over full details of his budget-vital as that course, I realize that the President has whelmingly confirmed, but it will not review is. No way can he decide in all had and should have great leeway in be unanimous. I will vote against it. cases or in most cases which programs of choosing his man for this particular job. Mr. President, I rise in opposition to HEW, or Defense, or HUD, or Transpor But we in the Congress have found out the nomination of Mr. Thomas Lance to tation, or Housing should push ahead that this job of Director of OMB has such be Director of the Office of Management and which should be held back or killed. power, such influence, that the OMB Di and Budget. Why cannot the Cabinet heads do rector so centrally determines the course Mr. Lance has some important quali that? The answer is simple. Most of them of this Government that we have wisely fications for this position which have are likely to be gung-ho advocates for insisted that the Senate shall advise and been stated very well by my colleague~ their agencies. They will want more consent to this nomination. We have the but they are overwhelmed by his lack of money for defense, more for housing, authority to say yes or no. And with that other qualifications that in my view are more for health. President Kennedy pitifully inadequate background, I do not essential. called his Budget Director his "no" man. see how we can say yes. It is true that Mr. Lance has been an And that is what an OMB Director has PRESIDENT CARTER INEXPERIENCED eminently successful businessman. That to be. Mr. President, Mr. Lance will not be is not only an indication of his com But he has to be more than that. He working for a President with great ex petence, it is highly relevant to his new has to be a "yes" man too. And when he perience in the Federal Government. job as Director of the Office of Manage says "yes" and when he says "no" will President Carter was elected in part be ment and Budget. I am sure he under determine the course of this country for cause of his great promise as an outsider, stands the value of a dollar, the impor years to come. precisely because he had no experience tance of holding down costs and the KNOWLEDGE ESSENTIAL in a Federal Government that had be often painful problem of eliminating come too big, too inefficient, too burden jobs and activities that cost more than Now what kind of person do you need for this vital decisionmaking? I submit some; a Federal Government that seemed their worth. Mr. Lance has also been re the first quality you need is· knowledge- to throw massive sums of the public's sponsible as a banker for saying both someone who knows something about money at problems like crime, inadequate yes and no to requests for loans. These these programs, someone who has had education, substandard housing, wasteful experiences will serve him well as the some experience with these Federal pro misuse of precious energy resources new Budget Director. grams, someone who has seen programs only to have the problems get worse. Mr. Lance has one other prime quali win and programs lose, and has ob We needed a change. President Carter fication. He is an old and trusted friend served the difference. We need someone was the answer to that call for a change. of the President of the United States. He who has worked with Federal programs Of course, President Carter does not have and the President know each other, trust long enough to make mistakes and learn experience in the gross mistakes-the each other. He has been the President's from those mistakes. We need someone protests against which brought him to banker. He will now be his principal ad who can give the President options, tell the White House. viser on the budget. him what the options will cost. Some But what does this mean? It means Why not? one who can evaluate and rate the op that we have a President taking over Mr. President, I will tell you why not. tions. Someone who can listen to con the most complicated and difficult job in LANCE WITHOUT EXPERIENCE flicting, expert advice and know enough the world who has very little prepara Mr. Lance simply has no experience, to make a reasonable decision on it. tion. He comes to the White House as one or record of performance in what is in Is Mr. Lance that kind of person? of the most inexperienced Presidents in many ways the toughest job in the ad What has been Mr. Lance's experience Federal Government affairs in this cen ministration, except possibly for the in the Federal Government? tury and probably one of the three or President's. Think what the head of the Mr. President, you will wait a long four least experienced in our 200-year Office of Management and Budget in this time for the answer to that question. history. Under the circumstances that is Federal Government is responsible for: He has had none--zero, zip, zilch, not the way the people wanted it and under The budget of the United States is the 1 year, not 1 week, not 1 day. He has the circumstances that is the way it 1878 CONGRESSIONAL RECORD-SENATE January 20, 1977 should be. And frankly, I think Presi by the Office of Management and Budget. budgetary consideration, including the dent Carter may well turn out to be one Frankly this is exactly what the OMB Board of Governors of the Federal Re of the best Presidents. I certainly hope should do. The administration helps serve System and the Federal financing and pray so. greatly in bringing order and discipline bank, despite massive budgetary impacts. The President has both the strength of out of the vast number of legislative pro I am trying to point out this is an enor no identification with past mistakes and posals the Congress engenders. The OMB mously complicated job. the weakness of no Federal Government recommendation-not always but usu The question here is, does Mr. Lance experience. ally-determines the life or death of ma really understand the problems, distinc STAFF AND CABINET HAVE LI'ITLE EXPERIENCE jor legislation. This will be particularIY tions and occasional inequities involved How about the people surrounding true when the President and the Con in all of these and many more areas, de him? gress are of the same party. spite his complete lack of Federal budget He has surrounded himself with a And the recommendation of the Di experience? The answer seems clear to White House staff that has two conspicu rector of the OMB to the President often me. It is an emphatic and resounding ous distinctions. First, they are very is the vital determining factor in "no." young. And second, they have virtually whether legislation is passed or vetoed. The first Carter budget, the 1978 no background, no record, no experience Now seriously, my fellow Senators, budget.-the first budget for which Mr. in Federal activities. should we approve a man to make this Lance will be principally responsible The President has appointed a Cabinet decision who has absolutely no experi will be crowding half a trillion dollars. of a little less than average experience ence in the Federal Government, none? In 1960, 16 short years ago that was the IMMENSITY OF BUDGET entire gross national product of this in the Federal Government. Some of his country. The budget has immense effect appointees have none. Some have a little. Finally, Mr. President, there is the on the number or jobs in our economy. A few have substantial experience. enormity and complexity of the budget And it may have the most profound effect The Senate is about to approve all of this $400 billion monster. the Cabinet with one possible exception. on inflation. Mr. President, can any one honestly So Mr. President, by any measure, Mr. And this Government is passing into un believe that Director-Designate Lance tried, unproven, unblooded inexperienced Lance is simply not qualified. has the experience that is so necessary WHAT OMB NEEDS hands. to cope with the plethora of highly com Sure the people-including this Sen plex and abstruse budget issues con We need a competent trained econo ator-voted for President Carter. I cam fronting the Office of Management and mist.-in view of the vast economic effect paigned for him. But did that mean that Budget? No doubt he will come to grips of the budget. Mr. Lance is not. with a few exceptions here and there the with the importance of distinguishing We need a person who has had ex administration should be without any of new budget authority from obligations perience with legislation that has suc the kind of training that only experience and obligations from outlays. In time he ceeded and legislation that has failed, can provide? will learn the characteristics of perma legislation designed to cost little that Yes, the people of this country want a nent indefinite budget authority, revolv has exploded in cost with over-runs that new approach. That is why they elected ing funds, liquidating cash accounts, ap heavily burden the taxpayer. Mr. Lance President Carter and a fundamental portionments, allotments, rescissions, has not had that experience. reason for his election was because mil deferrals, trust funds, supply funds, con We need a person who understands lions of Americans felt that a new ad tract authority, and the like. the complicated world of the Federal ministration could do a better job of But is Mr. Lance really in a position to budget from long, hard experience. reducing or eliminating the old programs resolve the inconsistency of treating Mr. Lance has had not 1 minute of that do not work or are not needed. Cer housing contract authority on a multi such experience. tainly a major failure of past adminis year basis in arriving at budget authority We need a person who has gone trations has been their failure in man totals while continuing to treat similar through the painful process of working aging the budget, in controlling the im long term commitments for Maritime on the budget of at least one and pref mense explosion of cost, in having more Administration operating differential erably several Federal Government agen than the courage and the will to kill or subsidies and purchase contract pay cies, either in the agency, in the Con cut programs that should have a lower ments under the Federal buildings fund gress or as an outside expert analyst. priority, but also, having the knowledge Mr. Lance has had no experience that can only come from experience in on ·a year by year basis? I hardly think budget or other way with any Federal so. Does he comprehend the problem of agency. knowing where to cut, and how to cut rolling over long term contract authority and how much to cut. following the expiration of existing con The first month or two or three of this As far as Federal Government pro tracts? I doubt it. administration is crucial. Mr. Lance is grams are concerned, Mr. Lance does not How about the issue of including loan undoubtedly a highlY intelligent, able have inadequate experience, he just does guarantee authority within the budget so man. But there is no way he is going to not have any experience, none. as to more clearly define Federal obli learn this for months, perhaps for years. EXPERIENCE NEEDED IN PRIVATE BANKING-WHY gations? Does Mr. Lance understand the Of course, the budget is not every NOT U.S. BUDGET? distinctions among full faith and credit thing. The spirit, the will, the inspira Consider how shocked Mr. Lance-who guarantees, conditional or partial guar tion of the President may enable him to is president of the National Bank of antees and indirect guarantees? How be a good President even with a lame Georgia, a bank with several hundred about the treatment of debts and loans performance in Presidential determina millions in assets-would be if his di of Government-sponsored credit enter tion of this Nation's priorities. But in rectors replaced him with a man who prises, deposit insurance for :financial my view the Lance appointment will had never operated a bank, never worked institutions, and guarantees of special handicap President Carter and this in a bank, knew nothing about Georgia, risks? Does Mr. Lance understand the country seriously. The Lance nomina and whose experience had been confined subtle economic implications of these tion is a mistake. The Senate should not to doing a great job handling his family various types of Federal involvement in consent to it. charge accounts. Such a selection would financial markets? I could go on and on. I am trying to be considered outrageous. But this is the Mr. President, I could go on and on. point out this is an enormously compli kind of selection we confirm if we ap I could cite the inaccuracy of treating cated job, a job for a veteran expert who prove this nomination. the total long term contract commitment knows what he is doing. Mr. President, as Director of the Office of the Federal Government under our Mr. SCOTT. Mr. President, I am going of Management and Budget, Mr. Lance assisted housing programs as budget au to vote for the confirmation of the Presi will not only be the principle architect of thority when in fact the tenant pays part dent's nominee, and yet I would com the administration's budget, he will also of this commitment. I could point out mend to our newly elected President the be the traffic cop for the most significant the fairly subtle but important budget remarks that were just made· by the dis bills every Senator and Representative distinction between-funding FHA losses tinguished chairman of the Committee introduces. How often a promising leg through Treasury borrowing as opposed on Banking. I would express the hope islative conception has been aborted by to direct appropriations. I could point that the new President will look to ex the one or two page memo of disapproval out the many groups excepted from pertise and guidance from some of these January 20, 1977 CONGRESSIONAL RECORD- SENATE 1879 subordinate officers in the various de COUNCIL OF ECONOMIC ADVISERS I have high hopes that Dr. Schultze partments and agencies of the Govern Mr. ROBERT C. BYRD. Mr. President, will give the same distinguished service ment. I ask unanimous consent that the Senate in his new position as he has given to I agree with much of what my distin proceed to the consideration of the nom others in the past. guished colleague has said, even though ination of Charles L. Schultze, of the Mr. BAYH. Mr. President, a few weeks he and I sometimes have differences of District of Columbia, to be a member of ago there was speculation that Charles opinion. I am glad that he said the things the Council of Economic Advisers. L. Schultze would be nominated by Presi he did say. Yet, our new President has The PRESIDING OFFICER. The dent Carter for several different Cabinet a right, I believe, to choose people in nomination will be stated. positions. In the end, the President de whom he has confidence for Cabinet po The legislative clerk read the nomina cided to name Charlie Schultze as Chair sitions and for close associations, such tion of Charles L. Schultze, of the Dis man of the President's Council of Eco as Director of the Office of Management trict of Columbia, to be a member of the nomic Advisers, an excellent decision and Budget. I believe that he should be Council of Economic Advisers. and a nomination to which I give my un given a chance, rather than voting down qualified, enthusiastic support. someone he does nominate on whom he The PRESIDING OFFICER. Without The fact that Mr. Schultze's name was seeks the advice and consent of the objection, the Senate will proceed to the mentioned for a number of different Senate. consideration of the nomination. Cabinet posts is ample testimony to the Because I believe in the right of the Mr. PROXMIRE. Mr. President, the high regard which he commands from President to choose his principal as Committee on Banking, Housing, and all who know him. I am proud to count sistants-he is responsible for them; he Urban Affairs has unanimously approved Charlie Schultze as a friend, and con is our Chief Executive--! commend to the nomination of Charles Louis fess that many times in the 14 years that him the reading of the remarks of the Schultze to be Chairman of the Council I have been in the Senate I have turned distinguished Senator from Wisconsin. of Economic Advisers, and I ask that to him for advice on economic matters. I hope that those who assist the Director the Senate confirm that approval. That advice has always been helpful. of the Office of Management and Budget, Dr. Schultze brings to this position a In remarkably few words Charlie those who assist other Cabinet officers superb background, in terms of academic Schultze can get to the essence of a prob in making important decisions involving preparation, experience, and knowledge lem, provide perceptive analysis, and billions of dollars, have the expertise of the Federal Government, and excel propose alternative solutions with clar and the knowledge and the background lence of performance. He is a profes ity. He is not only an excellent econo to pass good judgment on such matters. sional in the finest sense of the word. He mist, he is a public policy analyst of the Mr. SCHMIT!'. Mr. President, I think has received his B.A. and M.S. degrees highest quality. this may be one of a few occasions when from Georgetown University and his Mr. Schultze's prior experience as Di I will wish to associate myself with the Ph.D. in economics from the University rector of the Bureau of the Budget, and remarks of the distinguished Senator of Maryland. He has served in many his extensive work in recent years as a from Wisconsin. However, I do believe Federal agencies, including a period in senior fellow at the Brookings Institu that the general thrust of his remarks the early 1950's on the staff of the Coun tion, provide conclusive evidence of his was correct, that experience is extremely cil of Economic Advisers, which he will skill and abilities. I know he will provide important in the Office of Management return to head. One of Dr. Schultze's our new President with valuable guid and Budget. As a member of the execu finest contributions in the 1950's was his ance in the years ahead as we take on tive branch for a few years, it was all paper on inflation, prepared for the the two-headed monster of unemploy too clear that experience was a funda Joint Economic Committee as part of ment and inflation, and I am confident mental thing in that office. Senator Paul Douglas' pathbreaking that Charlie Schultze's presence in the However, I, too, will vote to confirm the study of employment, growth, and price White House will increase the chances of nomination of Mr. Lance, because I think levels. Then; in the 1960's Dr. Schultze success in improving our Nation's the President should have the opportu served first as Assistant Director and economy. nity to work with the people, in most later as Director of the Bureau of the The PRESIDING OFFICER. The ques cases, with whom he decides he can work. Budget. In that latter position, he bears tion is, Will the Senate advise and con However, I agree with the Senator some responsibility for the $10 billion sent to the nomination of Charles L. from Virginia, that the remarks of Sen understatement of the 1966 costs of the Schultze, of the District of Columbia, to ator PROXMIRE should be read carefully Vietnam war. But I accept his testi be a member of the Council of Economic and that the performance by Mr. Lance mony that he advocated a tax increase Advisers? in the next year should be watched very at the time, long before it was proposed The nomination was confirmed. closely. I commend the Senator for his by the Johnson administration. In hind Mr. ROBERT C. BYRD. Mr. President, remarks. sight, it is clear that the consequent I ask unanimous consent that the Presi Mr. McCLURE. Mr. President, I s&y budgetary deficit at a time of high em dent be notified of the confirmation of this only half facetiously. I note that a ployment was a primary source of in the nomination. number of people who have associated flation. And yet it is likely that economic considerations were overruled without The PRESIDING OFFICER. Without themselves with the remarks of the dis objection, it is so ordered. tinguished Senator from Wisconsin have any recognition of the ultimate cost to done so while noting the fact that per the Nation. hapg the President who was elected, with When Dr. Schultze left Government absolutely no experience in the office, service in 1968; he returned to academic UNANIMOUS-CONSENT AGREEMENT life as a professor at the University of cannot afford a man in the Office of Man Mr. ROBERT C. BYRD. Mr. Presi agement and Budget who likewise has no Maryland, and his research as a senior fellow of the Brookings Institution was dent, it is not the intention of the leader experience in the job. ship to call up the nomination of Mr. Perhaps, had the election gone the focused mainly on issues of national eco Marshall today. other way, we could have afforded that nomic policy, including editorship of the lack of experience in the other job. Brookings annual review of economic I ask unanimous consent at that time [Laughter.] issues entitled "Setting National Priori for a time limitation of 2 hours on the The PRESIDING OFFICER. The ques ties." Most recently, he delivered the nomination, to be equally divided be tion is, Will the Senate advise and con 1976 Godkin lectures at Harvard Uni tween Mr. WILLIAMS and the Republican sent to the nomination of Thomas B. versity on "The Public Use of Private leader, Mr. BAKER, and that the Senate Lance to be Director of the Office of Incentives." proceed to the consideration of the nom Management and Budget? Dr. Schultze's career demonstrates that ination immediately after the two lead The nomination was confirmed. he is qualified for the chairmanship of ers or their designees haye been Mr. ROBERT C. BYRD. Mr. President, the Council. What stands out, and was recognized under the standing order on I ask unanimous consent that the Presi demonstrated very clearly at his nomina Monday next. dent be notified of the confirmation of tion hearings, is the quality of the man Mr. BAKER. Mr. President, .I hope the nomination. the vigor and directness of his views anSition. In that event, I think that a 6:30 time idea of a time certain, I believe, greatly Mr. ALLEN. That is part of the unani for voting could, in fact, substantially de extends the convenience of the debate for mous-consent agreement--that a cloture crease the time that had been agreed Members. I recognize that other extrane vote would come, even if it came in the upon. ous matters might intrude, that dilatory middle of or inside the agreed time. Mr. ROBERT C. BYRD. I understand and delaying tactics might take time, or Mr. ROBERT C. BYRD. I do not think what the Senator is saying. rollcalls would eat into the available time we should say it is part of the agreement, Mr. President, I ask unanimous con and make it substantially less than 8 because if we do that, then we are laying sent that there be a time limit on the hours. But 8 hours is a long time. That the predicate for an argument to be confirmation of the nomination of Mr. makes a long day. made at some point that if there is a Bell of not to exceed 8 hours, to be My own personal preference would be unanimous-consent agreement on a mat equally divided between Mr. EASTLAND to have it not later than 6 p.m. or 6:30 ter, rule XXII as it pertains to cloture is and Mr. BAKER, and that the Senate pro p.m. If there is serious objection to that, vitiated by that unanimous-consent ceed to the consideration of the nomi I would state that our undertaking origi agreement. I do not believe it is. I do nation on Tuesday next immediately nally was just for 8 hours and the 6 or not think we should lay that into this after the two leaders or their designees 6: 30 time came as an afterthought as agreement. have been recognized. a matter of convenience for certain Mr. ALLEN. The precedent is going to Mr. BAKER. Mr. President, reserving Members. be established, then, that the cloture the right to object, I think that is the vote would come even though unanimous better way to handle it under· the cir Mr. MATHIAS. I have no great objec consent hacl been given that debate tion. As I say, I do not expect to spend cumstances. occur at that time on another subject. The PRESIDING OFFICER. Is there a great deal of time myself. I am thinking Mr. ROBERT C. BYRD. I am not sure of others who may have an interest. I objection? The Chair hears none, and it that we do not already have precedent is so ordered. think the 8 hours will protect them. I to this effect. I am saying to the Senator think if the majority leader and the Mr. HELMS. Rule XXII still stands? that, in my judgment, no unanimous Mr. ROBERT C. BYRD. The Senator minority leader undertake in sight of consent agreement as I have thus pro God and this company to insure us that need have no concern about rule XXII. pounded it here would vitiate the opera Mr. President, I thank all Senators. if there are prolonged rollcalls, if there tion of rule XXII with respect to the is some other urgent or extraneous busi vote on cloture. If I were to include in I think I should do this, however: We ness which intervenes and takes up a my unanimous-consent agreement that have no agreement on the nomination of substantial amount of time, they will notwithstanding rule XXII, thus and so, Mr. Marshall, and I am not going to ask protect us, I would ha~ no objection. that we will proceed with these nomina for a time agreement. I assured the dis Mr. ROBERT C. BYRD. May I say in tions- tinguished Senator from Virginia any financial institution which is a member United States) i& amended to read as fol The effects o"f Section 1011 will be to un of a. Federal home loan bank, or is an in lows: dermine each one of these laudable ideals. sured institution a.s defined in section 40l(a) "An individual shall not be allowed, as a American citizens living and working of the National Houslng Act, a.s assets for deduction from his gross income, any de a.broad do not have the benefit of many serv purposes o'f meeting the liquidity require ductions (other than those allowed by sec ices available at home that are paid for by ments under section 5A(b) of the Federal tion 151, relating to personal exemptions) taxes. When such services a.re provided by the Home Loan Bank Act (12. U.S.C. 1425a(b)); properly allocable to or chargeable against employer in the form of living allowances, to the Committee on Banking, Housing and amounts excluded from gross income under housing allowances, and educational allow Urban Affairs. this subsection.". ances, they are included in the employees' By Mr. LAXALT (for Mr. BARTLETI') : (c) Section 911 of such Code (relating to S. 388. A bill to a.mend the Internal Reve calculation of gross income. The exemption earned income from sources without the of 20 thousand dollars from ea.med income nue Code of 1954 with respect to income United States) is amended by striking out earned abroad by U.S. citizens living or re subsections (d) l\nd (e) and by redeslgna.ting was a.n attempt to partially compensate for sidlng abroad; to the Committee on Finance. subsection (f) as subsection (d). this inflated calculation of personal income. By Mr. MATSUNAGA: (d) Section 36 of such Code (relating to Concern for equal treatment of taxpayers' S. 389. A bill to amend the Internal Reve demands that some attempt be made to real- nue Oode of 1954 to exempt from excise tax credits not allowed to individuals paying op tional tax or taking standard deduction) is 1stlcally compensate individuals for cost of certain buses purchased by nonprofit orga living a.nd quality of living differentials. nizations or by other persons for exclusive amended by striking out "sections 32" and use In furnishing transportation for State or inserting in lieu thereof "sections 32, 33, ". The Halliburton Services Company of Dun local governments or nonprofit organizations; SEC. 2. The amendments made by the first can, Oklahoma, has provided the following to the- Committee on Finance. section of this Act shall apply to taxable information on what they expect the impact S. 390. A bill to amend the Internal Reve years beginning after December 31, 1975. of the present law to be. It 1s obvious that nue Code of 1954 to provide that the amount STATEMENT BY SENATOR BARTLETT equity for taxpayers overseas is being ignored of the charitable deduction allowable !or ex Today I am introducing legislation that and must be corrected before the tax col• penses incurred in the operation of a highway will correct- one of the most misguided pro lection deadline this year. vehicle will be determined in the same man visions of the Tax Reform Act of 1976. My The attached computations are based on ner as the business deduction for such ex bill will substantially return the treatment the following assumptions: penses; to the Committee on Finance. of individual ea.med income of Americans 1. The employee in the foreign country abroad to what it was prior to October 4, 1976. will incur additional expenses living in the foreign country equal to the allowances paid The Tax Reform Act of 1976 amended to him. STATEMENTS ON INTRODUCED Section 911 (c) of the 1954 Internal Revenue BILLS AND JOINT RESOLUTIONS Code so as to reduce the exclusion for in 2. Housing furnished the employee 1s usu ally inferior to housing in the United States By Mr. LAXALT (for Mr. BART come ea.med abroad by U.S. citizens from 20 thousand dollars to 15 thousand dollars and the rentals paid are greatly in excess of LETT): and modified the computation of that ex rentals on comparable housing in U.S. Also S. 388. A bill to amend the Internal clusion in three ways. First, on individual employee sometimes keeps a house in the Revenue Code of 1954 with respect to entitled to the earned income exclusion may U.S., therefore, all rentals paid abroad con income earned abroad by U.S. citizens no longer credit or deduct foreign income stitute additional expense to him. taxes paid on excluded income. Second, in living or residing abroad; to the Com 3. Tuition for dependents paid by or on mittee on Finance. come, derived by individuals beyond the in come eligible for the earned income exclusion behalf of the employee is an additional ex Mr. LAXALT (for Mr. BARTLETT). Mr. pense, since such schooling is offered free in President, I am today introducing legis ls now subject to U.S. tax at the higher rate brackets which would apply U no exclu the U.S. lation that will make certain changes in sion had been allowed. Third, income earned 4. Vacation expense is the airfare of an em the Tax Reform Act of 1976 with respect abroad which is received outside the coun ployee and his famlly usually to a. more de to income earned abroad by U.S. citizens try in which earned in order to avoid tax veloped country. living or residing abroad. The bill will in that country 1s ineligible for the earned 5. Based on the above assumptions, the income exclusion. restore the treatment of such income to take home pay of the employee while in the what it was prior to the passage of the My bill returns the exclusion to 20 thou foreign country is equal to his base salary 1976 Act. sand dollars and, save for the third modifi cation mentioned above, returns the calcula plus the overseas dHTerential. The overseas I ask unanimous consent that the text tion of the tax Uab1lity to what it wa.s be differential is generally $150 per month in· of the bill as well as the remarks of and for the passage of the Tax Reform Act. crease in pay given an employee to induce materials prepared by the Senator from I find it dista.ste!ul to have to undo some him to go a.broad. Oklahoma (Mr. BARTLETT) be printed in thing that should have been done properly COMPARISON OF UNITED STATES INCOME TAX EFFECT ON the RECORD at this time. the first time, but in reviewing the legisla CEMENTER rN DUBAI TO CEMENTER IN UNITED STATES There being no objection, the material tive history of this provision, it is obvious to was ordered to be printed in the RECORD, me that what we ended up with is a minced version of a. ha.If-baked idea.. Section 1011 Computation of U.S. tax as follows: of the Tax Reform Act is punitive in its ef 8.388 fects on individual Americans abroad and a. If in Be U enacted by the Senate and HO'USe great disservice to American business over United If in Increase of Representatives of the United States of seas generally. Unless corrected, its net effect States Dubai in tax America- in Congress assembled, That (a) will be that Americans wm lose Jobs and paragraph (1) of section 911 (c) o! the Inter that American companies operating abroad Base salary in United States _____ $11, 260 $11, 260 ·------nal Revenue Code of 1954 (relating to limi will be forced to cut back their activities or Overseas differential.______l, 800 1, 800 -----·-- tation on amount o! exclusion) is a.mended increase their product prices. to read as !oilows: Base salary in Dubai______13, 060 13, 060 ··------Quoting from the Senate Finance Com Add: "(l) Limitations on amount of exclusion. mittee Report Number 94-938. the ostensible The amount excluded from the gross income livin_g allowance .• ----·------·-- 3, 000 ---·---- objectives of the Ta.X Reform Bill of 19'16 Furntt:ure allowance ••••.•.--··-----··-·- 1, 000 -----·- of an individual under subsection (a.) for any were: Revaluation of currency allow· taxable year shall not exceed an amount anee. ______---·-·---.--·-- 1, 572 ------which shall be computed on a daily bas1s at "1. To improve the equity of the income Fair market value of housing______12, 000 ------an annual ra~ of- tax at all income levels without interfering Tuition paid ..•• ·------· 3, 000 -·------with equally important goals of economic Vacation paid ••• ------·-·--·---·- 2, 000 ·-·----· " (A) except as provided in subparagraph -~~~~~~~- (B), $20,000 ln the case of an individual who efficiency and growth; To ta I .:ompensation...... 13, 060 35, 632 -··-·--- qualifies under subsection (a), or 2. To slmpUfy many tax provisions, delete Less IRC sec. 911 exc1usion______0 20, 000 ------unnecessary language and encourage tax- -~~~~~~~- "(B) •25,000 In the case of a.n individual Adjusted gross income...... 13, 060 15, 632 ----···· who quallftes under subsection (e.) (1), but payers to use the standard deduction; Less: only with respect to that portion of such 3. To continue !or- the next 12 months the Standard deduction.·------2, 090 ?., 800 ·------taxable year occurring after such 1!1div1dual economfo nilnulus provided in the Tax Re Personal exemptions (4)...... 3, 000 3, 000 ---·---- has been a bona fl.de resident of a foreign duction Act of 1975 and extended through Taxable income ••. ------7, 970 9, 832 -·----·- country or countries for an uninterrupted the first half of 1976 by the Revenue Adjust Ta:t (based on joint return rates): period of 3 consecutive years.". ment Act of 1975; and Under proposed law______1, 374 1, 783 S409 Under present law (with $15,- (b) The last sentence of subsection (a.) 4. To make improvements in the adminis 000 exclusion and higher or section 911 of such Code (relating to tration of the tax laws, particularly to rates>----·-·-····-----··-· 1, 374 4,804 3, 430 earned income from sources \Vlthout the strengthen taxpayers' rights. January 20, 1977 CONGRESSIONAL RECORD-SENATE 1883 COMPUTATION OF UNITED STATES INCOME TAX EFFECT come not taxed In the United States a.re ON DISTRICT MANAGIR IN ABU DHABI AS COMPARED Computation of U.S. tax not allowed as a credit or a deduction against TO DISTRICT MANAGER IN THE UNITED STATES If in If in United States taxes. United Saudi Increase American citizens working abroad do not States Arabia in tax Computation of U.S. tax have the benefit of many services available at home that are paid for bv taxes. As for If in If in Increase Less: the individual businessman overseas, the United Abu in Standard deduction______2, 800 2, 800 ------tax exclusion of $20,000 and $26,000 helps States Dhabi tax Personal exemptions (4)______3, 000 3, 000 ------off'set the additional costs of schooling, hous ~~~~~~~~- Taxable income______15, 370 18, 501 ------ing, travel, and other inconveniences. Such Base salary in United States _____ $21, 465 $21, 465 ------Tax (based on joint return rates): Americans overseas do not get the benefits Overseas differentiaL______1, 800 1, 800 ------Under proposed law______3, 103 3, 960 $857 of those things their taxes help pay for in Under present law (with $15,- the United States. Add:Base salary in Abu Dhabi____ 23, 265 23, 265 ------000 exdusion and hieher 8, 455 5, 352 The exclusions in section 911 give some Living allowance______3, 076 ------rates>------3, 103 relief from this situation and represent a Furniture allowance______750 ------measure of Justice for the American citizen Revaluation of currency allow- The present law concerning taxation of ance______1, 572 ------abroad. Because of inflationary trends Fair market value of housing______12, 000 ------Americans abroad is more complex than it throughout the world, any adjustment in Tuition paid______3, 000 ------was, is economically constrictive rather than the exclusions should be up rather than Vacation paid·------2, 000 ------stimulative, and is of doubtful administra down. ~~~~~~~~- tive efficiency. In short. this provision of the Total compensation______23, 265 45, 663 ------United States Government employees Less IRC sec. 911 exclusion______O 20, 000 ------Tax Reform Act accomplished none of the abroad remain subject to our income taxes ~~~~~~~~~ announced aims of that a.ct, and is positively on their earnings, but they are not taxed Adjusted gross income______23, 265 25, 663 ------mischievous in its effects upon individuals on fringe benefits such as shelter, cost of Less: and companies alike. Standard deduction______2, 800 2,. 800 -_-_ -_-_ -_-_ -_-_ living, education, travel and other differen Personal exemptions (4)______3, 000 3 000 To the extent that the current law forces tial cost payments. On the other hand, cost ~~~~~~~...;...~ American companies to forgo planned expan of-living allowances are taxable compensa Taxable income______17, 465 19, 863 ------sions or to increase their prices, it will hinder Tax (based on joint return rates): tion to employees of private business. Under proPosed law______3, 670 4, 342 $672 international economic recovery. Much of the Armed forces personnel enjoy fa.c111ties on Under present law (with $15,- world is depending upon the United States' foreign bases which provide an environment 000 exclusion and higher economic ability and strength for much of comparable to a base in the States. Civilians rates>------3, 670 9, 068 5, 398 their recovery. The present law will frustrate employed abroad must attempt to create a that expectation as American expertise and comparable cultural environment for their COMPARISON OF UNITED STATES INCOME TAX ON FIELD experience is drawn back to U.S. territory. families on an individual basis. Reduction SUPERVISOR IN QATAR TO FIELD SUPERVISOR IN UNITED An additional mark against the present of the presently excludable portion of salary STATES law ls its retroactive nature, which if allowed earnings would discriminate against non to be carried out with this yea.r's tax collec government employees. tions will unfairly and unduly burden thou In order to operate on an internationaf Computation of U.S. tax sands of America.ns who have not been able basis, American companies must employ some If in to plan for the increased taxes. For all the of our citizens to work In foreign subsidi United If in Increase above reasons I urge the earliest possible con aries and branches. These American employ States Qatar in faJC sideration and passage of my blll. I ask unani ees are necessary because local nationals, in mous consent that the text of my bill and the many cases, do not possess the needed skills, BasesalaryinUnitedStates ______$17,400 $17,400 ------following materials which include a sampling experience or familiarity With American busi Overseas differentiaL______1, 800 1, 800 ------of the letters I have received from around ness methods. ~~~~~~~~~ the world, as well as editorials and state United States citizens representing Ameri Base salary in Abu Dhabi___ __ 19, 200 19, 200 ------Add: ments on this problem, be included in the can businesses abroad often have many years Living allowance-______2, 800 ______Congressional Record with my remarks. of experience with the language, law, cus Furnitureallowance______750 ------toms, and techniques of the foreign country Revaluation of currency FROM THE STATEMENT OF WALKER WINTER, FOR allowance______1, 350 ------in which they live. The are invaluable and Fair market value of housing ••• __ ------12, 000 --·----_ THE CHAMBER OF COMMERCE OF THE UNITED are as essential to companies operating Tuition paid______3, 000 ------·- STATES, JULY 9, 1975, BEFORE THE HOUSE abroad as American capital. It is absolutely Vacation paid______2, 000 ------·- Col.lD.ll'rl'El!! ON WAYS AND MEANS essential to have American citizens in over ~~~~~~~_..;..~ Totalcompensation ______19, 200 41, 100 --·-···- EXEMPTXON OF EARNED INCOME FROM FOREIGN seas positions to manage these investments, Less IRC sec. 911 exclusion ______0 20, 000 ------SOURCES as wen as to train local personnel. A citizen employed a.broad must receive Adjusted gross income •••••• - 19, 200 21, 100 -······- We reaffirm our position that the exclusion Less: in section 911 of the Internal Revenue Code compensation !or special costs which do not Standarddeduction______2,800 2,800 ----·-·- for earned income of citizens who a.re resi represent real income. It he is given an al Personalexemptions(4). ------3, 000 3, 000 ------dents and/or employed abroad should not be lowance for tuition for his children to attend ~~~~~~~~~ a private English language school, this does Taxableincome ••••••••••••• 13,400 15,300 ------reduced. Under existing tax law, United Tax (based on joint return rates): States citizens, who a.re bona fide. residents not represent any income to the individual, Under proposed law______2, 610 3, 085 475 of foreign countries for at least one full cal but the United States will tax such a tuition Under present law (with $15,000 allowance. exclusion and higher rates).. 2, 610 7, 036 4, 426 endar year or who are physically present in foreign countries for 17 out of 18 consecutive As a revenue producing measure, the elimi months. may exclude from their federal in nation of the exclusion would be largely in COMPUTATION OF UNITED STATES INCOME TAX ON AS come tax the first $20,000, or in some cases effective. Corporate employers would be SISTANT DISTRICT MANAGERS IN SAUDI ARABIA AS the firijt $26,000, of compensation received obliged to increase salaries or living allow COMPARED TO ASSISTANT DISTRICT MANAGERS IN for services performed outside the· United ances of their overseas American employees, UNITED STATES States. thus diminishing corporate tax receipts. The net effect would be to make American busi This exclusion has been a part of our tax ness abroad less competitive with other for Computation of U.S. tax law since 1926. This issue was fully considered eign business, since other major industrial by both House and Senate in 1962, and the nations generally do not taX' their overseas If in If in present law is a result, with the exception United Saudi Increase businessmen. States Arabia in tax that in 1964 the $35,000 exclusion was re Increased costs are already having an ad duced to $26,000. The tax benefit has been verse effect on employment by forcing a num reduced substantially from an unlimited ex Base salary in United States _____ $19, $19, 370 ------ber of international companies to hire for :no clusion to the present $20,000 and $26,000 eign executives, not necessarily of the host Overseas differential.______1, 800 1, 800 ------exclusion. Furthermore, the exclusion is llm ~~~~~~~~- countries, to replace American executives. It Add:Base salary in Saudi Arabia.. 21, 170 21,.170 ------ited sufficiently to prevent its use as a tu has been estimated. a United States company avoidance device. 3 spends an average of $100,000 during the first ~~v/:ifu~~o~:..C:nce::::-=::::::::::: ' Critics of the exclusion assert that it en two yea.rs when it sends a $20,000-a-year man m:::::::: tices Americans, With technical and profes Revaluationlowance ______of currency al- ---- 2, 381 _ _. __ _ abroad. sional skills not avallable 1n foreign coun The long-range effect of any unfavorable Fair market value in housin&------12, 000 ------tries to work abroad by offering them tax-free change would be to jeopardize our competi =:rr:~cC:::::::::::::::::::::::: t ~ :::::::: earnings. Th1s assertion completely over tive position abroad at a time when infi.ation ~~~~~~~~~ looks. that fact that the income of these and rising operating costs have made it in 21 11 employees may be subjected to fdretgn in creasingly difficult to compete in foreign mar LessWt :.rrr:ci~s-ioli:::::: ' i ~ ~ ==== come taxes as well as- other foreign taxes. kets. AddlttonaI costs could cut back on Adjusted lfOSS i~--. ·-- 21, 170 24, 301 ------Also, the foreign truces attributable to In- dividends and profits from foreign operations
CXXIII--119-'PA.rt-. ~ .!... 1 1884 CONGRESSIONAL RECORD- SENATE January 20, 1977 which assist in solving our balance-of-pay American workers soar. The problem is alize the conditions for U.S. citizens working ments problems. magnified because a company usually has to overseas. [From the New York Times, Jan. 9, 1977] pay roughly $20,000 to a worker Just to Thank you for your assistance, and con TAX LAW: PuNISHING AMERICANS ABROAD finance his living-cost differential and home sideration of my views. leave expenses, which Internal Revenue Very truly yours, To the Editor: counts as personal income to a worker. DONALD W. PRESTON. The new Congress and the new Adminis Equity is best assessed in examining the tration will have an opportunity to examine after-tax effects. A company that pays P.O. Box 1177, HAMn.ToN 5, BERMUDA, the recent changes in U.S. tax law that affect $40,000 to a domestic employee gives him, American citizens residing abroad. It is the December 2, 1976. say, $30,000 after tax. For that employee to Hon. DEWEY FOLLE'lT BARTLE'lT, general consensus of the American com $30,000 be sent abroad and receive after tax Russell Building munity in Brazil that the legislation is either and living allowances, the company will have deliberat'ely punitive or utterly thoughtless. Washington, D.C. to expend $80,000, $90,000, or if he's stationed DEAR Sm: The contents of this letter are to The changes in question, by reducing the in Japan, $100,000. The company's foreign income earned abroad which is exempt from register a complaint as to the construction competitor is able to send in an employee of and passing of the latest Income Tax Bill. U.S. taxation and by greatly raising the ef equal sk111 at much less total outlay because fective tax rate on the non exempt income, I am an individual who works overseas for expose Americans residing a.broad to the cer the employee does not pay domestic tax on a foreign company, which does not pay to me foreign earnings. The competitor thus tends t:iinty of real double taxation. This is be any subsidies as in reference to paying an cause foreign countries, not unnaturally, to win the contracts and get the business. equivalent amount of U.S. taxes. I have to themselves tax income earned by non-citizen So if the taxwrlters are counting on pay my U.S. taxes from my earned salary. residents from economic activity within the Treasury getting more revenue as a result With the new tax Bill, which has been passed, foreign country, sometimes (as in Brazil) at of their "reform," forget it. Treasury will lose it will make it so that I cannot afford to very high rates indeed. revenues on two counts: First, because U.S. continue in my overseas position. By the ac foreign earnings will shrink as U.S. com Furthermore, Americans living abroad ac tion of the new Bill I will be forced to re tually receive services-police, fire, s:inita panies lose business to foreign competitors. turn to the United States, whereby I will be Second, because the executives, engineers and tion, etc.-from the host nation, whereas placed into the Job market and either I will they receive few if any from the United hardhats will no longer be bringing home be unemployed or I will displace someone States. On top of this, Americans abroad savings that can subsequently be taxed by from a position. often have to pay exorbitant amounts, none Treasury as investxnent income. Is the objective of this Bill to create addi of them deductible, for services such as edu The degree to which this increased tax tional unemployment? It certainly appears cation which would be provided at govern burden prevents the United States from that this is one of the objectives. ment expense in the U.S. This is to be con selling goods and services abroad, of course Further, you have made it so that the re trasted with the gentle treatment meted out means that the cost of goods and services we duction in the overseas exemption ls retro to our diplomatic personnel, who have special buy from abroad will rise. The effect is the active to January 1, 1976. This places such a allowances for Just such items. same as an embargo on labor or any other severe burden upon my family that I, at this The net effect of the new tax law is to traded commodity. The foreign nation that time, have doubts that I will be able to pay make it substantially more expensive for otherwise would employ the talents and re the retroactive taxes. Under the Internal American companies to employ Americans sources of U.S. citizens suffers because the Revenue Service Code, ls it 100% legal to abroad. Many will choose not to do so. The tax differential makes such employment have a retroactive tax? result will be a reduction of American in impossible. United States citizens who are working fluence abroad and of the beneficial spread · What Congress should have done instead is outside of the United States as part of the of American technology and good will, a double the exemption, to account for the international operating work force are in a worsening of the U.S. balance of payments inflation that has taken place since 1962, very good position to be excellent represent and of our ability to compete with other in thereby expanding U.S. business activity atives for the Unlted States. However, when dustrial nations, and the encouragement of abroad with its resulting beneficial feedback the Congress passes unfair income tax laws taxpayer despair and prevarication. The in effects on the U.S. economy. As it is, this I feel reasonably sure that these good repre crease in tax revenues will be negligible or ls one tax change that damages everyone's sentatives of the United States might have non-existent. The only other country to tax interest to nobody's benefit. other thoughts. on the basis of nationality rather than resi It is my impression in general conversa dence is Switzerland, which is hardly com NOVEMBER 16, 1976. tions with large major companies that these parable. Subject: Tax Reform Act of 1976; Changes companies are going to have their United Had Congress deliberately set out to pass a. in the Treatment of Foreign Income States citizens working overseas return to the hopelessly misguided law, it could not have Affecting Individuals. United States. Foreign nationals will then be done better. I hope that this does not re Senator DEWEY F. BARTLETT, brought into the vacant positions. The end main the case. Senate Office Building, result is that in many cases the United THOMAS J. SUTCLIFFE. Washington, D.C. States Government will lose not only more DEAR SENATOR BARTLETT: I wish to express tax dollars but possibly good business sense [From Wall Street Journal, Nov. 1, 1976] my views relating to certain provisions of from a standpoint of international dealing. I will certainly appreciate a response from TAXING INCOME EARNED ABROAD the Tax Refor~ Act which was signed into Law by President Ford on October 4, 1976. you in regard to the justification for this un One of the many reasons President Ford The specific provisions deal with the changes fair tax law. should have vetoed the tax bill last month in the treatment of foreign income affecting Very truly, instead of signing it is the provision that in individuals. GERALD E. BROOKS. creases the tax burden on U.S. citizens work I a.m not in favor of these changes because ing abroad. The taxwriters l'oo.l!Y goofed, for of the increased tax burden on U.S. cl tizens BUTLER ASSOCIATES, INC., the net effect can only be that American living and working overseas, as well as the corporations operating abroad will reduce the Tulsa, Okla., September 15, 1976. fact, that these changes are retroactive to Senator DEWEY F. BARTLE'lT, number of Americans they employ and either January l, 1976. replace them with foreign nationals or The changes will be a significant deterent Senate Office Building, shrink the level of U.S. business activity to promoting and maintaining U.S. busi Washington, D.C. abroad. ness interests overseas. American firms can DEAR DEWEY: The recent announcement Until 1962, the United States didn't tax not successfully compete in foreign markets regarding the change in the income tax po its citizens on any wage and salary income if they cannot find personnel willing to work sition of Americans working abroad will earned abroad, and we are still one of the overseas. And, because there is notable re create a very serious problem for companies very few nations of the world who now do lationship between Americans overseas, such as ours. As you know, we are an en: tax such income. Prior to 1962 we accepted American direct investment overseas and gineering and construction management firm the universal rationale, which was and is U.S. exports, the U.S. balance of trade deficit providing foreign governments, as well as reasonable, that a wo:cker w111 be taxed by the can be expected to deteriorate. private industries overseas, with technical country in which he earns his income. As to the effective date of the taxation, I services. The proposed revision in the tax But when the law was changed, it was at cannot understand how Congress could con law will eliminate any competitive position least replaced with some relief on this score. sciously approve a retroactive change in the that we might have with the foreign firms, Americans employed abroad could exempt the tax burden of U.S. citizens! Would your and for all practical purposes we will be out first $20,000 of income earned abroad from fellow members accept a. retroa.ctive change of business insofar as foreign projects are U.S. taxes, and after three years abroad could in the election laws that placed them in concerned. exempt the first $25,000. Now, not only has Congress if such a. cha.nge adversely affected The retroactive aspects of the proposed the figure been dropped to $15,000, but the their prel,ent position? I believe the answer changes are especially unfa.ir both to the non-excluded income must be taxed in the would be a resounding No! But yet Congress corporation and to the individuals. The dif same tax brackets as if there were no expects the sa.me logic to be accepted when ferential that we must pay our expatriates exclusion. it is applied in other areas. will rise substantially, and it js too late to The change will have enormous damaging I strongly urge you to introduce amend renegotiate existing contracts. It might be impact on the competitiveness of U.S. busi ments in the next legislature which will not interesting to you to know that a recent ness a.broad as the tax 11ab111ties of their only rectify these unfair changes, but Uber- article in the "Wall Street .Tournal" quoted January 20, 1977 CONGRESSIONAL RECORD-SENATE 1885
Fluor Corporation as having 87 percent of FENIX & ScissoN, INC., for the same job in the U.S.: it is barely ade their engineering backlog overseas. This alone Tulsa, Okla.,_September 13, 1976. quate to meet the high cost of living in Iran. should give you an indication of the impact Hon. DEWEY BARTLETT, For instance, my housing allowance ls $325.00 that this change in the law wm have on such U.S. Senate, and I. pay $350.00. Others, with the same firms. Washington, D.C. amount of allowance have to pay $600.00 and If the objective of the le.w ls to increase DEAR DEWEY: The September 10, 1976 issue more; I was fortunate in that I had a. friend unemployment, it will succeed admirably. of The Wall Street Journal indicates that the in Isfahan (an Iranian) that helped me We are certain that this was not the intent tax-revision bill a.s approved by the House obtain my house. and that this section of the proposed revision Sena.te Conference Committee contains the If this passes into law the incentive for of the tax bill will be reconsidered. The following provisions: overseas employment will be gone entirely change has the effect of removing any in 1. Reduces to $15,000 the amount of income a.nd there will be a mass return of Americans centive for American personnel to go over U.S. citizens working a.broad may exclude returning to the United States. This w111 seas. We would appreciate you opposing this from their U.S. income for tax purposes. put an extra burden on the employment sit change. This reduction ls to be retroactive to Janu uation that you now have in the States. Very truly yours, ary 1, 1976. Please, consider the proposed reduction VINCENT E. BUTLER, 2. Does a.way with the credit U.S. citizens as a detriment to the well being of many Presiden,t. working a.broad have been able to take Americans engaged in foreign work. I re against their U.S. taxes for foreign taxes spectfully ask for your "no" vote when this PARKER DRILLING Co., pa.id on the excluded income. matter comes before you. Nairobi, Kenya, September 17, 1976. 3. In the future, an American working Re : Tax reform bill. abroad earning more than the excluded Tha.nk you for your consideration of this Hon.' DEWEY F. BARTLE'IT, $15,000 wlll be subject to U.S. tax a.t the request. U.S. Senate, higher tax bracket that would apply if the Respectfully, Washington, D.C. $15,000 also were taxable. DoN L. WILSON, DEAR SENATOR BARTLETT: Attached you will Our company, among other things, sells WILMA DEAN WILSON. find copies of recent articles from the In engineering and construction management ternational Herald Tribune giving notice to services in foreign countries. We have proj_ By U.S. expatriates about the pending tax bill. ects and/or assignments in England, France, Mr. MATSUNAGA: As I have written in earlier months, this South Africa and the Middle East. We have S. 389. A bill to amend the Internal reduction of tax excludable income will only additional proposals outstanding in the Revenua Code of 1954 to exempt from hurt the U.S. consumer in one of two ways: Middle Ea.st and Japan. At the present time, excise tax certain buses purchased by 1. Expatriate employees Will be forced to we have ten U.S. citizens stationed abroad. nonprofit organizations or by other per return to the U.S. because of the higher tax U.S. citizens generally will not accept sons for exclusive use in furnishing consequences to which they would be sub foreign assignments unless their after tax transportation for State or local govern ject. This fact would be a. negative force on income and benefits exceed those which they ments or nonprofit organizations; to the the Country's unemployment percentage. would obtain if they were employed in the 2. The U.S. firms operating abroad to im USA. The tax exclusion, the credit for foreign Committee on Finance. port products into the U.S. Will necessarily taxes and rate applied against their USA ta.x Mr. MATSUNAGA. Mr. President, I am have to increase their prices to the con a.ble income a.re all factors that are consid introducing today two bills which are sumer. The reason being that of increased ered in their employment contracts and in directed toward furthering the trans wages, which they will have to pay to keep the charges that we must make for their portation services to the elderly. American expertise abroad. services. our standard employment agree When the Tax Reform Blll goes to a final ment includes a provision that should the My concern for the transportation vote, please consider whether the $1 billion tax treatment change we will give additional needs of the elderly has been greatly re in additional tax revenue will not be felt by compensation to allow them to have the same inforced from hearings and studies on the American public in a multiplier effect. after tax income a.s before the change. this subject, which I conducted as chair Sincerely yours, We have reviewed the impact of these pro man of the Subcommittee on Federal, JERRY W. HOLDER, posed tax changes on the personnel we now State, and Community Services of the Assistant Division Manager. have stationed abroad a.nd find that our House Select Committee on Aging. additional costs, due to these changes, are TEHRAN, IRAN.. such that we must increase any charges to Older Americans presently encounter October 10, 1976. our foreign clients somewhere between numerous difficulties in traveling to and Hon. DEWEY BARTLET!', $10,000 to $12,000 per year per man. In some from their destinations. Their paths are Senate Office Building, cases this additional charge will make- us often impeded by income inadequacies Washington, D.C. non-competitive with our European (mostly which often discourage frequent use of DEAR Sm: As an Oklahoman, and an French and German) competitors. private or public transportation-by de American working and residing a.broad, in We feel the retroactive clause is particu ficiencies in existing transportation pro Europe, Africa and the Middle East, I wish larly unfair as it gives us a substantial un to complement the United States Congress expected expense (in excess of $100,000) so grams and services--especially in iso on another unparalleled act of stupidity in late in the year that we have no opportunity lated rural areas--and by the unaccom the punitive tax legislation for U.S. Ex to either (1) re-negotiate or withdraw from modative design of certain vehicles used patriates. These actions can only be greeted contracts that may no longer be worthwhile. by elderly and handicapped persons. with joy by Western European and Japanese or (2) replace our U.S. citizens with Euro There are numerous program sources firms who wm happily jump in to fill a.ny pean employees. from which funds and services may be void created by American firms being rend I am in accord with the general intent of ered uncompetitive by our own Congress. the tax-revision blll and in most instances drawn for developing and operating The bill wlll certa.lnly cause many Ameri agree that the proposed changes are.well past transportation for the elderly. However, cans to return to the U.S. because of simple due; however, I do not be-Ueve its intent ls to a number of important constraints have economics. These people will need jobs. The deter companies such as ours from working limited the range and level of such Bill wilf ca.use many "marginal" or new for a.broad or to make us less competitive with transportation services. eign operations to fold because of cost con foreign companies. The bill I offer today would amend siderations. The net effect is that some Very truly yours, certain tax exemption provisions in order manufacturers who enjoy a high level of em S. E. ScISSON, ployment due to foreign markets will now President. to facilitate easier- access by the elderlY find it mare difficult to retain this level. This to schoolbuses during periods in the. day ls a. potential cause of additional unemploy BELL HELICOPTER INTERN TIONAL, when such vehicles are not being used ment for workers in the U.S. Isfahan, Iran, September 12, 1976. by the schools. Competition from West German, Italian, DEWEY BARTLE'IT, French, English and Japanese concerns is Prior to and since the 1971 White U.S. Senate Office Building, House Conference on Aging, the use of keen. Any advantage our Congress may pro Washington, D.C. vide them wlll surely be appreciated and DEAR Sm: It is my understanding that the schoolbuses to meet the transpo1tation utilized to the fullest extent. Congressional Conferees have voted to reduce needs of the elderly has been a constant I do not understand how the logic tn this the foreign income tax exemption to $15,- and reocurring recommendation. At issue legislation was derived. In a period where 000.00. Also, all income over the $15,000.00 is the fact that older persons are in great unemployment and "balance of payments" exemption would be taxed at the higher need of adequate and responsive trans is a problem, this seems to me to be a. coun percentage as if the $15,000.00 was also tax portation services. Schoolbuses continue ter productive action. I can assure you that able. to remain an important and untapped it goes a. long way for me in diminishing the I feel t-hat" this proposal is unfair to those resource. credibility of the U.S. Congress. working overseas. Sincerely, Although the base salary, cost of ltving al During hours of nonuse by students, R. S. NICKEL. lowance and etc. is higher than that paid schoolbuses could and would provide a 1886 CONGRESSIONAL RECORD- SENATE January 20, 1977 useful means of transporting the elderly By Mr. MATSUNAGA: section 170 of the Internal Revenue Code of to nutrition sites or senior centers. S. 390. A bill to amend the Internal 1954 (relating to charitable deductions) is Revenue Code of 1954 to provide that the amended by redesignatlng subsections (1) In order to make schoolbuses more ac and (J) as subsections (j) and (k), respec cessible for use by older persons, my bill amount of the charitable deduction al tively, and by inserting after subsection (h) seeks to remove a large obstacle blocking lowable for expenses incurred in the op the following new subsection: contractors' use of schoolbuses for non eration of a highway vehicle will be de "(1) AMOUNT OF DEDUCTION FOR EXPENSES school purposes. Presently, schoolbuses termined in the same manner as the busi OF OPERATING A MOTOR VEHICLE.-The amount owned by contractors are exempt from ness deduction for such expenses; to the allowable as a deduction under this section Federal excise tax-that is, 10 percent of Committee on Finance. with respect to expenses incurred by the tax the vehicle-if the contractor signs an Mr. MATSUNAGA. Mr. President, the payer for the operation o! a highway affidavit at the time of the purchase that second bill I am introducing today is an vehicle- "(l) shall include that portion o! the the vehicle will be used solely for trips other attempt to further transportation costs of operating and maintaining such ve to and from school. This exemption pro services for the elderly by extending tax hicle (including a reasonable allowance for vides great savings to the contractor, deductions for expenses incurred by vol depreciation) which 1s allocable to such op particularly when there are large num unteers driving to and from charitable eration; and bers of buses involved. Many contractors, service functions. " ( 2) shall be determined in the same however, are unwilling to jeopardize Our older Americans are important manner as if such operation were in connec these savings in order to provide non· human resources. Many of the Nation's tion with a trade or business of the tax school transportation. senior population have the desire to pro payer.". (b) The amendment made by subsection As revealed in the House Aging Com long their years of productivity and serv (a) shall apply with respect to the operation mittee transportation study, an "in ices. However, all too often, their contri of a motor vehicle occurring after the date formal interpretation" by an official of butions made as volunteers in local or of the enactment of this Act in taxable years the Internal Revenue Service indicated State services, are stymied by the burdens ending after such date. that "if subsequent circumstances arise of rising expenses in driving or being which would dictate that a bus purchased driven to their charitable activities. tax free can no longer be exclusively 1.U?ed Numerous programs and projects ADDITIONAL COSPONSORS for exempt purposes, then its diversion throughout the country rely upon the s. 15 to other uses will not negate the exemp services of volunteer drivers. But fre At the request of Mr. JOHNSTON, the tion for that bus." Most bus contractors, quently many volunteer drivers are Senator from Minnesota (Mr. ANDERSON) to however, tend to interpret the law more forced curtail their voluntary driving was added as a cosponsor of S. 15, the narrowly. because of the imbalance between in In light of the great uncertainty on the creasing costs in operating a vehicle and Federal Election Campaign Act Amend ments of 1977. part of schoolbus contractors as to their the limited, fixed income of the senior s. 69 tax exemption if schoolbuses are used to volunteer. transport persons other than pupils, my Volunteerism is usually effective when At the request of Mr. STEVENSON, the bill would amend the Internal Revenue there is a potential to alleviate burden Senator from New Mexico (Mr. Do code to allow the transport of the elderly ing costs to the volunteer, and when the MENICI), the Senator from Hawaii (Mr. and other disadvantaged persons out-of-pocket expenses of the volunteer MATSUNAGA), and the Senator from through publicly-supported programs is at a minimal. Consideration of incen Rhode Island (Mr. PELL) were added as without the loss of the exemption tives is an important aspect of promot cosponsors of S. 69, to extend the Export presently permitted in Sec. 4221Philadelphia, Pa., November 29, 1976. Thompson (R., Ill.) himself a former master and local prosecutors, Thornburgh says, Hon. JIMMY CARTER, prosecutor as U.S. attorney in northern Illi "simply lack the tools that have made the President-elect of the United States, c/o nois, "can be traced-irony or ironies-to the federal operation a first-class one"-full Democratic National Headquarters, Nixon-(John) Mitchell Justice Department. time staffs, adequate investigators, immunity Washington, D.C. No administration ever did more to upgrade, and wiretap statutes, access to federal in DEAR PRESIDENT-ELECT CARTER: On behalf professionalize and staff the U.S. attorney's come tax returns, the services of the FBI of the 25 independent, non-partisan Citizens office in the field, and then leave them un and Postal Service inspectors. Crime Commissions throughout the coun fettered in their choices of prosecution." With adequate resolve, the states' own try, I respectfully urge that serious consid Literally hundreds including two former powers-strong financial disclosure and con eration be given to the retention of United governors, state judges and cabinet members, flict of interest laws, common law protections States Attorneys on the basis of merit and, legislators, mayors, county executives, coun against abuse of office, special prosecutors conversely, that replacements not be un cilmen, policemen and political leaders-were could be used to root out corruption. Federal dertaken on the basis of political expediency. brought to the bar of Justice and success law, constitutionally limited and designed for While the turnover of federal offices by fully prosecuted. other purposes, 1s a blunt instrument by a new, incoming administration is justifi Now that checkrein-a Republican-con comparison. able in many respects, in the area of law trolled Justice Department keeping tabs on But by "imagination, wit and daring,'' as enforcement the retention of competent, local Democratic machines and officehold• Thornburgh puts it, federal anti-extortion, dedicated and courageous prosecutors must ers-will disappear. mail fraud and use immunity laws have been overshadow political considerations if the All we have to go now is Carter's promise applied to state and local cases. "We aren't quality of our criminal justice system is to that he would appoint U.S. attorneys as well stretching the Constitution,'' he says, "but remain high. as judges "strictly on the basis of" merit, not we certainly are stretching the law." Certainly, your personnel search team as chief political payoffs." Some legal observers fear this will lead to a can determine which United States Attor Traditionally, most of the men appointed national police force, national set of courts neys, on the record, are doing the job ·for U.S. attorneys-no woman has been ap and national criminal code, with possible which they were appointed. Our citizens pointed to that position since Congress <:re Watergate-like abuses in a single, all-power crime commissions are cognizant of federal ated the post in 1789-turn in their resigna ful U.S. Justice Department. prosecutors around the country who have tions when a new President takes office. But without strong federal prosecution, developed very effective crime fighting pro But under law, U.S. attorneys serve four there would be little to check ingrained cor grams and are aggressively investigating, in year terms. Some top past U.S. attorneys ruption that has infected entire political sys dicting and prosecuting those linked to including Robert Morgenthau of New York tems, as in Maryland, Illinois, New Jersey, organized crime, white collar crime and in 1969, and Elliot Richardson in Massachu New York, Pennsylvania, Florida and West political corruption. setts in 1961-tried to stay on but were Virginia. To remove these high-minded crime fight eventually forced out. ers solely on the basis of political expedi Now two of the most outstanding U.S. at WORLD OIL AND FINANCE ency would do a great disservice to our na torneys, Samuel K. Skinner, Thompson's suc tion's law enforcement resources. cessor in Illinois, and David Marston ln East Mr. STEVENSON. Mr. President, a In the greater Philadelphia jurisdictions, ern Pennsylvania-have said they will not re short time ago the Banking Committee most familiar since the Citizens Crime Com sign, despite Carter's accession to the Presi held hearings on OPEC oil pricing and mission with which I am affiliated serves dency. Skinner has been a thorn in the flesh this area, the two United States Attorneys of the machine of the late Mayor Richard J. the management of world debt. Those responsible for New Jersey and Eastern Daley; Marston has been pursuing allies of hearings made it clear that political sta Pennsylvania have been doing a commend Philadelphia's Mayor Frank Rizzo, who claims bility and economic and financial well able even laudatory, job. To remove these major credit for carrying Pennsylvania for being throughout the world are seriously men because they are registered Republi Carter. jeopardized by continually increasing oil cans would only serve to deprive the juris Carter will be under tremendous pressure prices and the inflation, recession, and dictions of two viable, aggressive, able and to replace Marston and Skinner with less ag debt which they produce. The hearings experienced prosecutors. gressive political appointees. His decision will also made it clear that the world is on We and other citizens have been heart be an acid test of what he really means by ened by your pledge to improve the federal "merit." a treadmill. Increased prices for oil add criminal justice system. You can go far to In addition, The New York Times has urged to OPEC surpluses. The OPEC surplus ward redeeming that pledge by retaining Carter to retain Robert Fiske in Manhattan, drains purchasing power from the rest United States Attorneys of proven merit. David Trager in Brooklyn and Jonathan of the world and, like a tax, dampens Sincerely, Goldstein 1n New Jersey. There's also strong worldwide economic activity. A handful !AN H. LENNOX, local support for retaining Terry Knoepp in of the strongest countries and privat.e President. San Diego. banks assume the risks 'of channeling Beyond these publicized cases, how will Carter, and ~ell select most U.S. attorneys the surplus to the weakest, but the [From the Philadelphia. Inquirer, debtor countries' ability to repay is Jan. 9, 1977] across the nation? In past years, both Repub lican and Democratic Presidents have ac undermined by the oil-induced reces THE U.S. ATTORNEYS: A TEST FOR CARTER cepted recommendations of each state's sen sion. Yet success in reviving economic (By Neal R. Peirce) ior politicians of the President's party. activity inevitably strengthens OPEC's WASHINGTON.-The level of integrity in the The Car~er Administration could send out hand further. The cycle is thus perpetu nation's state and local governments will be word that it will accept only recommenda ated with each new cycle resting upon deeply influenced by decisions soon to be tions of outstanding lawyers. It could-at the unresolved problems of the last. made by President-elect Carter and his choice the risk of offended sensibilities-junk the Walter Levy, a well-known oil econ for attorney general, Griffin Bell. political referral system altogether. The question is: what kind of men and If Carter goes in the other direction and omist, describes the problem well in a women will be selected to serve a.s the 94 appoints U.S. attorneys favored by local Dem recent article in the New Yrok Times. I U.S. attorneys-each a sort of mini-attorney ocratic political bosses, his "clean" image ask unanimous consent that the article general in his own judicial district--a.cross could be irrevocably tarnished. be printed in the RECORD for the benefit the nation? Such a strategy would, in fact, probably of my colleagues. Ir there was one area in which the out baclcfire. Any attempt to return to selective There being no objection, the article going Republican administration indisput partisan prosecution and "put the kibosh on was ordered to be printed in the RECORD, ably served the public interest, it was in ap following the evidence where it leads," as as follows: poin tlng U.S. attorneys who ferreted out of Thornburgh puts it, would set off a storm of WORLD OIL AND FINANCE ficial corruption in state and local govern protest by the public and press. It might also ments, including some of the nation's most trigger wholesale insurrection among assist (By Walter J. Levy) deeply entrenched Democratic machines. ant U.S. attorneys, now a professional group Some three years after the Organization of January 20, 1977 CONGRESSIONAL RECORD - SENATE 1889 Petroleum Exportihg Countries' drama.tic nancing. Accordingly, each passing year, dur mous consent that it be printed in the quadrupling of oil prices, uncertainties a.nd ing which we have somehow managed to RECORD. dangers a.re still threatening the prosperity cope, makes the next one more difficult. There being no objection, the article and stability of both oil-importing countries In the absence of a.n unprecedented ex was ordered be printed in the RECORD, and OPEC alike. pansion of world production and trade, we to With November 1976 production of around must thus establish the institutional and as follows: 33 million barrels per da.y, OPEC decided in financial framework that could-if none of (From the American Bar Association Journal, December to raise oil prices: Saudi Arabia. the existing institutions, such a.s the World December 1976] and the United Arab Emirates-accounting Bank, International Development Associa CONGRESS AND THE COURTS for about one-third of OPEC exports-by tion or the International Monetary Fund (By Carl McGowan) some 5 per cent as of Ja.n. 1, a.nd the remain can appropriately undertake this task-han ing 11 OPEC members by a.round 10 per cent dle the refinancing and new credit require The prevailing passion of Congress for ju now, plus 5 per cent more as of July 1. ments of a large number of countries. dicial review is the central fact of life at the The Saudis have also announced that they This presupposes that the fina.ncia.lly moment for federal judges at all levels of will raise their production a.s required, which strong members of the Organization for Eco the system. It inevitably induces sober reflec in practical terms means that their output nomic Cooperation and Development and tion by them about the current relationship between the Congress and the federal judici could increase in stages from some 9.3 mil· OPEO would be willing to support the most ary. On one aspect of that relationship, it is lion barrels per day to perhaps 11 to 12 m.11- affected through their participation in in lion barrels per day by the end of 1977. (The terna.tiona.l financial arrangements that perhaps enough to note that, unlike other Emirates' potential for incre.a.sed production would bridge the financial gap during a.n purchasers of services, Congress is in the is comparatively small.) It the Saudis could, uncertain future. This must be done before uniquely happy position of being able to in fact, market these quantities, the produc large-scale defaults threaten a breakdown of freeze the price. But, although many judges, including those so circumstanced not to tion of the 11 in 1977 would decline by some confidence, with its nearly inevitable domino as three m.illion barrels per day, to a. level of be under severe financial stress, a.re genuinely effect. a.la.rmed a.bout both the immediate and the about 17 to 18 million barrels per da.y. Governments a.re still watching a contin But is this really likely to occur? The 11 longer range deterioration in the calibre of uous erosion of the world's oil supply a.nd the federal Judiciary flowing from that policy, a.re not going to watch passively a.ny la.rge financial systems, which, if nothing is done, scale decline of their oil sales a.nd revenues, their a.biding concern is with the more sub could be comparable in its potential for eco stantive question of the allocation of tasks by on which a number of them have become nomic and political disaster to the Great desperately dependent. The Saudis, too, a.re the Congress to the federal courts-their ex Depression. The time is late; the need for tent, their nature, a.nd what they portend bound to be concerned, a.s they would in action, overwhelming. creasingly exchange oil reserves underground for the future. for surplus financial revenues, subject to The business of the federal courts, with erosion through infl.a.tion. the exception of the 11m.1ted original juris DENVER HONORS MARTIN LUTHER diction reposed in the Supreme Court by There is a. danger that the tug of a. supply KING a.nd-price war between the Saudi group a.nd the Constitution, depends on the affirmative the 11 would be considered by either as a. test Mr. HASKELL. Mr. President. this action of Congress. The lower federal courts of strength, with their prestige a.nd credibil week I received a copy of the first resolu exist only by virtue of congressional action, ity on the line. To avoid the danger of chaos, as does the appellate jurisdiction of the tion adopted in 1977 by the Council of Supreme Court. The business they do is re the most likely outcome would be some the City and County of Denver. The reso compromise. stricted to what Congress authorizes a.nd But even if this split-pricing interlude lution designates January 15 as "Dr. directs. What they in fa.ct have been given should be resolved, there remain numerous Martin Luther King, Jr. Day" within the to do has varied greatly since the first Judici other major problems. Within 10 to 15 years, city and county of Denver and petitions ary Act of 1789, but the trend has been un in the absence of massive new all discoveries, the Congress of the United States to de mistakably, a.nd now overwhelmingly, to hydrocarbon production is bound to decline. clare the same day an annual national wards enla.rgemen t. As of now, nothing is in sight that would fill holiday in honor of this great and good That trend is now vastly accelerating, a.s the energy gap of nearly every importing man. I myself ca.n readily see when I compare the country in the world. we.y I spent my working da.y on my entry In the meantime, however, OPEC-ca.rte! I am proud that since 1971, Denver has into the system thirteen years a.go with what control, in the light of increasing oil de set aside January 15 in memory of Dr. I a.m doing now. My own court increasingly mand and declining a.va.lla.b111ties, is unlikely King. As a cosponsor of efforts to desig has become one preoccupied with civil lltiga to collapse. Moreover, OPEC's pricing wlll nate his birthday a national holiday, I tion.Jnvolvlng the federal government. Dur openly or tacitly be supported by the gov hope the Congress will act quickly-on this ing fiscal 1976 appeals of this nature con ernments of every non-OPEC country with significant me~ure. stituted nearly three fourths of our business. substantial domestic energy production that They will soon become, I believe, more than applies OPEC pricing to its own produc As we begin a new time in our national 90 per cent of the total. tion-such as the Brita.in, Norway, Canada., life-a time of healing and national re Pa.ra.llellng the growth in the numbers of a.nd probably, in due course, the United newal-it would be especially appropri these appeals is an observable change in their States. Also, a.ny successful development of ate to honor this great American who, in nature-and in their novelty, complexity, replacement energy would, barring a. nea.r the midst of strife and bitterness, a.nd difficulty. And in their interest as well, miracle, be very exclusive. perhaps I should add, a.t least for anyone This prospect for future oil a.nd replace preached love and brotherhood. with a fascination for the strange a.nd won ment-energy costs implies that for the fore drous workings of the far-flung federal es seeable future the world faces foreboding tablishment in both its executive and legis financial problems, With the cost of oil im CONGRESS AND THE COURTS lative embodiments. ports from OPEC, in current dollars pos This has been ca.used by a number of sibly reaching $300 blllion by 1985. ' Mr. STEVENSON. Mr. President, one things. One is chargeable to the courts them There a.re only very few importing coun of the Nation's most respected jurists, selves. Progressive relaxation of judicially tries that could benefit directly either from Justice Carl McGowan of the U.S. created requirements of standing has enabled the financial deposits by OPEO countries Court of Appeals for the District of almost any person to get into court to com their investments, or their purchases of goo~ Columbia, has written an article which plain a.bout almost a.ny a.ct or omission to and services. Most of them wlll depend for warrants the attention of all the Mem a.ct in the whole spectrum of federal activi their foreign-exchange revenues on the bers. He passes upon the long-range de ties. But the ca.pa.city of the courts to re general improvement of their exports verse that relaxation is now being impaired and the financial support from those few terioration in the caliber of the Federal by a. spectacularly increasing tendency on countries that will remain financially strong. judiciary which results from a parsimo the part of the Congress to provide expllcitly These more-prosperous nations must thus nious congressional attitude toward sal for federal court remedies and judicial re "recycle" part of their revenues as grants aries. And quite rightly he attaches view in every new federal statute. or ever more dubious loans to the less larger importance to disabilities placed This trend wa.s impressively described a.nd fortunate. upon the Federal judiciary by a Congress documented by Henry Friendly in his Car Much has ben said a.bout the pa.st success which insistently delegates to the judi pentier lectures a.t Columbia. in 1972. If you of recycling, implying that this is a phe think Congress has heeded that or sim.1la.r ciary its own authority for which the warnings, I ca.n supply a. long list of statutes nomenon that would fa.de a.way in due judiciary is ill-suited and increasingly course, like the Cheshire cat in "Alice in enacted since then indicating that the cur Wonderland." However, this sweeps aside the weighted down. It is an altogether rent congressional love affair with federal staggering increase in internationa.l lndebted thoughtful, dispassionate but provocative jurisdiction is heating up rather than ness~specially of the less-developed coun article about the relationship between cooling. tries-from about $90 billion in 1973 to some the judiciary and the legislative branch. There recently became effective the Social $170 to $180 billion as of now, Involving, We would all profit from reading it and, Services Amendments of 1974, which provide perhaps, close to 40 percent of private fl- therefore, Mr. President, I ask unani- for civil actions in the federal district courts 1890 CONGRESSIONAL RECORD-SENAn January 20, 1977 to enforce state ohlld support orders on A recurring phenomenon is for the legisla judges 111 equipped by training or experience certification by the secretary of health, edu tive branch, in addressing itself to major to make the judgments appropriate only for cation, and welfare. A few weeks earlier the areas of public concern, to finesse ha.rd the elected representatives of the people, yet president signed the Safe Drinking Water choices of pollcy that a.re likely to tie up obliged to do so because of demand of the Act of 1974. which, after taking a deep elected legislators representing differing new model. breath, provides for (1) civil actions by the interests in knots of controversy and result If federal judges hold a great potential of administrator to require compliance, (2) ing inaction. Instead, it makes broad dele power to impose their views on many aspects civil penalties, fines, and injunctive relief gation of authority to department heads or of the modern economy, it is surely the Con for failure to obtain permits, (3) exclusive newly created commissions to make those gress that has ma.de them so by its penchant review in my court of regulations promul choices in the form of implementing regula for combining broad delegation o! law-mak gated under certain sections of the act and in tions. In order to assure that the regulations ing authority with sweeping, albeit some other· specified courts of appeals of regula a.re carefully scrutinized for conformity to times inexpertly conceived, provisions for tions under other sections, (4) district court the often dimly ascertainable congressional Judicial review. In any event, my immediate review of actions concerning variances or intentions, judicial review is provided by concern is less with the implications of that exemptions, and (5) civil actions by citizens reference to variously articulated sta.nd approach for the philosophical underpin in the district court without limitation as to a.rds-arbitra.riness, rational basis, or sub nings of our democracy than with its effect the amount in controversy. The Endangered stantial evidentiary support in the record. in adding new grist for the mills of an al Species Act of 1973 also provides for citizens' When that record is one made in informal ready overtaxed federal court system. suits in the district court without regard to rule making, it is indistinguishable in its ALWAYS ADD, NEVER SUBTRACT Jurisdictional amount, and the Older Ameri content from the proceedings before a legis The prospect faced by the federal courts is cans Comprehensive Services Amendments of lative committee hearing on a proposed bill that of a Congress always adding to their 1973 puts in the federal courts of appeals letters, telegrams, and written statements Jurisdiction but never ta.king anything away. mandatory Jurisdiction of appeals by states from proponents and opponents, including This ls accomplished by a seeming inditfer from the commissioner's actions. occasional oral testimony not subjected to enc®, as Chief Justice Burger has so Justly These are but a handful of the newer jur adversary cross-examination. It is on that complained, to the necessity of providing in isdictional grants, many of which deal with kind of record that members of Congress de creased resources to enable the courts to infinitely more complex, 1f indeed not more cide which way to vote on a bill, if they cope with the rising tide. An example of this important, subjects. are among those who try conscientiously to blithe approach is the Regional Rall Reor CONGRESS APPLIES FEDERAL POWER inform themselves of anything other than ganization Act of 1973, the statute passed on The pattern taking shape appears to be the relative political weight of the lobbies an emergency basis to try to keep the bank that of a Congress intent on bringing federal at work. The resulting policy choices, when rupt eastern railroads running whtle they power to bear in an ever-widening range of reflected in the statutes themselves, a.re vir could be reorganized on a unified basis. That human affairs but having no better answer tually immune to Judicial scrutiny except as a.ct created a special three-Judge district for the monitoring, supervision, and enforce constitutional barriers are transgressed. As court to serve in effect as the reorganization ment of the exercise of that power than the Justice Brandeis said long ago, speaking for court for seven railroads, including the Penn employment of the federal courts. That is the Supreme Court, when dealing with Central, with a very tight statutory timetable conceivably one way to govern the country, statutes directly, courts presume that facts in which to get its work done. But no pro and perhaps we of the federal courts should exist supportive of them. vision was ma.de for additional judicial man be flattered by this seeming mark of con The point is, thus, obvious. When by con power or kindred resources. The system was fidence in our capacities. It may be, however, gressional delegation tantamount to abdica somehow, presumably, supposed to absorb that it was not in this way or by heavy in tion the policy choices are largely committed this additional task within its present ca volvement in tasks of th1s nature that the to agency rule making, the record before the pabilities, as it indeed has had to do. federal courts achieved the prestige and reviewing court is essentially the same. No At the same time, Congress seems unable popular acceptance they appear now to enjoy. matter how the standard of review is articu to move on the pending suggestions to re That prestige can only suffer if the federal lated, there is wide latitude for judges to duce the jurisdiction of the federal courts courts are made to carry too active a role in vote their policy views in the same manner and to rationalize the means by which It is what is surely in large part simply day-to-day as does the legislator. No matter how sen exercised. The American Law Institute's public administration. A widely known state sitive Judges are of the necessity for restraint modest proposals for a more rational alloca ment of Charles Evans Hughes is, "We a.re by a lifetime Judge not accountable to the tion of jurisdiction between the state and under a Constitution, but the Constitution is electorate, the opportunities and the conse federal courts principally involve not a com what the judges say it is.... " What is less quent temptations are great to come down plete abolition of diversity jurisdiction, as widely known is that those words were spoken on the side of the judge's persona.I concep should be done, but only closing the federal by Governor Hughes in a speech to the tions of policy. Even the humblest Judges courts to resident plaintiffs. They have not Chamber of Commerce of Elmira, New York, and the most alert to the dangers of result been able in six yea.rs to reach the stage of in 1907. He attacked the railroads' effort to oriented adjudication-may slip, sometimes final congressional committee consideration. emasculate his bill to create a strong public subconsciously, if their predilections are suffi In this instance the inertia of Congress is utilities commission by hemming it in with ciently engaged and thereby risk nullification almost entirely attributable to a conspiracy sweeping provisions for Judicial review. Those of the principle that democracies a.re to be of silence by the practicing bar. The politi famous words were immediately followed by run in accordance with the majority will. cally sensitive legislators correctly interpret these: that silence as opposition, albeit one that " ... and the Judiciary is the safeguard of WHEN JUDICIAL REVIEW IS TRICKY must be largely covert because it cannot our liberty and our property under the Con It is one thing for a federal judge to sit in counter logically the reasonableness of the stitution. I do not want to see any direct as Judgment on an order of the National Labor change. sault upon the courts. nor do I want to see Relations Board or of the Interstate Com The facts of llfe are that, with the average any indirect assault upon the courts. And I merce Commission made in an adjudicated voter's understandable indifference to the tell you, ladies and gentlemen, no more in case on a record compiled in adversary pro intricacies of federal jurisdiction, the fed sidious assault could be ma.de upon the in ceedings under statutes concretely formula.t eral courts, with no lobby going for them, a.re dependence and esteem of the judiciary than ing legislative policy choices. It is quite an vulnerable to any single special interest pos to burden it with these questions of admin other when the court is called on to review sessing some capacity, however slight, to istration .... regulations made in rule making by an agency punish at the polls. "Let us keep the courts for the questions to which Congress has ma.de a sweepingly What Congress was able to pass recently broad delegation of power to put flesh on the with no difficulty at all was a statute on they were intended to consider.... " bare bones of preca.tory prescriptions that We can believe that Hughes remembered judicial conflicts of interest--a subject that there shall be cleaner air and unpolluted has a.bout as low a priority as one can im these words when many yea.rs later as chief waters, or greater product safety, or working Justice he faced and was instrumental in agine in view of the comprehensive Code of conditions less hazardous to health or safety, Judicial Conduct proposed by the American overcoming what was probably the most or greater conservation of energy. serious indirect assault ever made on the Bar Association and embraced by the Judicial Supreme Court. Today, despite the fact that This is a new kind of regulatory control Conference of the United States as con the prestige of the courts has never been that, as Prof. Murray Weidenbaum of Wash trolling on federal judges. Apparently mem higher, they are !aced with a variety o! widely ington University has pointed out, departs bers o! Congress simply could not resist differing "indirect" assaults. Some are of widely from the older and more familiar getting into that act. It did not cost any- model. The supervisory agency has no re thing, and it made it appear that they were their own making. Those from without, sponsibilit y for the particular industry as a happily. are mainly devoid o! hostile purpose whole In its impact on t he public. The focus alert t o assure the better functioning o! t h e and often are t;he consequences o! el ther is rather on a single aspect of its activities federal courts. .indifference or exaggerated respect for Ju Their <'ther legislative achievement was dicial capabilities. to the exclusion o! everyt hing else. Necessary as the new model may be thought to be in a to impose on the already struggling federal WHO IS MAKING THE LAWS? physical environment staggering under the courts a rigid schedule for the disposition The current congressional involvement of demands on it by a culture whose first law of federal criminal cases, and that at a time the federal courts in public affairs does not seems to be that the consumer must have when the federal courts have been moving stop with their immersion in administration. what he wants, the problems inherent in it mightily and with visible success to bring It extends to the legislative process itself. are not lessened by the second guessing of this problem under control despite the dra- January 20, 1977 CONGRESSIONAL RECORD-SENATE 1891 matte increase in federal crlmlnal prosecu felt that they usually could handle their ances that he woUld sign the bill. The polit tions. No thought, of course, was taken as neighbors by themselves but that standing ical pressure of the President's strenuous to how the court.a coUld meet the new re up to George m called for something more campaign fight with Ronald Reagan for the qulrements without a substantial increase than self-help. Republlcan party's nomination and con in judicial resources. Nor has any action However this may be, the preoccupation siderable reaction from the business com been taken on the sweeping revision of the of federal Jurisdiction with that primacy ls munity apparently had much to do with his federal criminal code, including the ellml large and growing, With inescapably adverse decision to veto the bill. But that veto cost natton of a lot of offenses that do not re impact on the handling by federal courts of Ford the resignations of Dunlop and the eight quire the exertion of federal power, pro purely private lltigation. This ls something union members of his Collective Bargaining posed by a presidential commission a few which, if I am right, the practicing bar must Committee in Construction. years ago. take into account in its own interest. Per In his capacity as Secretary of Labor, John CONGRESS IN THE LITIGATION ACT haps it may even decide that it has nothing Dunlop vigorously promoted the proposed to lose by speaking up on the subject of di legislation. Dunlop based his support of the Meanwhile, there are to be seen in the versity Jurisdiction. burgeoning ranks of our litigants some new bill on the provisions which established the faces--those of members of Congress them DON'T DIM THE FLAME Construction Industry Collective Bargaining selves. With the decline of standing require The Judiciary-at both state and federal Act. The Act would have created a national ments and the expansion of Judicial remedies levels-ls an institution widely believed to commission to oversee wage settlements, and review, a growing number of legislators be of critical importance to our national modeled on the Construction Industry Stabil ization Committee, an element of the Eco have awakened to the political advantages of well-being. As the ultimate expositor aml nomic Stabilization Act of the early 1970's. going to cot:rt to challenge executive, agency, guardian of the Constitution, the federal ju It was Dunlap's position that this would and even legislative action. This attracts dicial power has served for two hundred stabilize wage rates in the industry and pre publicity and is likely to be popUlar With the years a.s the torch that illumines the values constituents. It has few, if any, drawbacks, embodied in that charter. Surely it is not the vent "leap-frogging." To Dunlop, common especially if there are pro bono publico concern of lawyers alone that its flame be situs picketing was the quid pro quo neces groups or private law firms available, as not dimmed by either congressional neglect sary to persuade labor to accept this there appear to be, to provide the legal repre or a too expansive concept by court or leg commission. sentatdon. islature of how far its light can reach. The fallacy in his position lies in the fact I do not say that this is an undesirable that there is no logical or practical relation development, but there may be implications ship between these two sections of the pro of it not yet thought through with sufficient THE FUTURE OF COMMON SITUS posed law. They are not dependent upon one another or even complementary. The arrange care. It might, for example, be unhealthy if PICKETING the federal courts come to be regarded as a ment was purely political, designed to gen higher chamber where a legislator, who has Mr. LAXALT. Mr. President, nearly 2 erate labor support for industry-wide collec failed to persuade his colleagues of the de years ago an all-out attempt was started tive bargaining by giving labor a juicy pl um mer.l ts of a particular bill, can always renew in the 94th Congress to enact a bill legal it has been trying to pick for 25 yea.rs. the battle before a tribunal that does not izing common situs picketing in the con Evidence of congressional support was hav~ to worry about re-election. And some strong enough, when the b111 was recently struction industry. That proposal, H.R. passed by both Houses of Congress, to put might conceivably think that in certain con 5900, was ramrodded through the House· texts free legal services, if such there be, a.re opponents of the bill on notice that when perhaps indistinguishable in substance and of Representatives almost before anyone Congress reconvenes after the presidential effect from political contributions. In any there could alert that body to the defects election, regardless of who the victor may be, event, this is one area In which the legis in that measure. the Common Situs Picketing Bill will surely lators are direct consumer'B of our product, H.R. 5900 was a bad bill and it met the resurface at an early date. and consumers peculiarly situated to do fate all bad bills should meet-it was The common situs picketing legtslation has something about it if they are not satisfied. stopped before it could become law. But been designed to overrule a long line of The federal courts in Washington, because Supreme Court and National Labor Relations stopping it required extended debate, two Board (NLRB) decisions. The blll would per they are where they are, a.re undoubtedly cloture votes in this Senate, and a Presi more caught up in what may be called, for Init a union which has a dispute With a gen want of a better word, public interest or dential veto. eral contractor or a single subcontractor at I was opposed to passage of H.R. 5900, a construction site (the "primary employer") publlc affairs litigation. But we are not alone to close down the entire project by picketing among the circuits in this respect. If wbat I and I am proud to have been among the see happening in our court is any guide, then leaders in killing it. Evidence that our to prevent the employees of other subcon tractors ("neutral" or "secondary employers") it may be that private civil litigation is 1n course was the proper course has ac from working at that location. Present court !or some hard times. For one thing, in the cumulated in recent months. One of the rUllngs llmlt a union's lawfUl picketing of a new regulatory statutes Congress is prone best and most recent arguments against construction Job to the primary employer. to provide that judicial review is to be forth common situs picketing was published in coming on an expedited basis and is to take Legislation proposed at various times in the precedence over other pending litigation. Al the January 1977 issue of the Labor Law past would have permitted wide-open picket ready it is at least arguable that one who Journal. ing of all employers at a construction project. sues another to enforce a contract or to as Inasmuch as organized labor and The most recent bill included two relatively sert a tort or fraud liabillty ls getting lost many Democratic Party leaders are in minor restrictions on picketing: ten days' in the shuffle. He may be regarded at worst notice to the parties involved ancl approval favor of legalizing common situs picket by the union's national office. These provi as a positive nuisance, or at best as a minor ing and secondary boycotts. I think it is distractdon of the court from the pressing sions were "designed to enhance the possi publlc business at hand. safe to predict we will have another H.R. bility of settling the dispute Without a work It has long been an article of faith, as 5900 confronting us in the next few stoppage." 1 Clearly, these provisions would Prof. Harry Jones of Columbia Law School re months. Lest anyone forgets how bad have presented only Ininor inconveniences to minded us in his excellent initiation of the that legislation is, I ask unanimous con the union. ' John Dewey lectures on legal philosophy, sent to print the Labor Law Journal ar The building trades unions view common situs legislation not only as a means for solv that one of the great ends served by law and ticle in the RECORD. the courts is "the authoritative settlement ing legitimate economic disputes, but pri of disputes beween individuals and between There being no objection, the article marily as a means to organize the construc individual citizens and the state." In my own was ordered to be printed in the RECORD, tion industry. As a. spokeseman for AFL-CIO observation, it ls that latter aspect that is as follows: President George Meany explained in the pre-empting the time of the federal courts [From the Labor Law Journal, House hearings, the purpose of common situs and very possibly to the subordination of the December 1976) ls "to see every Job in America a union Job." former. Sen.ate Cominittee Member Paul Laxalt (R. THE F'uTuRE OF COMMON SITUS PICKETING Nev.) correctly predicts that an extensive Perhaps this was inevitable from the day (By Stephen J. Cabot and Robert J. we rejected the parliamentary system, elect organiza tlon campaign in an industry 40 % Simmons) open shop by gross volume is likely to cause ing to live under a written Constitution in a. "substantial escalation of strike activity.":! which power is dispersed between three sep The Situs Picketing & Construction Indus try Collective Bargaining Bill (H.R. 5900), Increased strike activity presents a serious arate branches of government, and with one three.t to the already shaky economy of the of those branches having, thanks to John vetoed by President Ford in a controversial Marshall, the authority to examine the ac decision last December, ls a prize the bullding construction industry. tions of the other two by reference to that and construction unions have been seeking LEGAL BACKGROUND Constitution. Our revolutionary origins may for the past 25 years. Under heavy pressure The proposed common situs picketing leg explain why, in enacting a federal system, we from many segments of the pollttcal, legal, islation addresSe6 the law of secondary boy• tacitly accorded a primacy and priority to and business communities, President Ford cotts. A brief survey of the evolution of this the individual's right to complain about his was backed into a poUtically explosive government over hls grievance against his corner. Ford had given Secretary of Labor ueighbor. Our colonial forebears may have John Dunlop both public and private assur- Footnotes at end of article. 1892 CONGRESSIONAL RECORD- SENATE January 20, 1977 body of law will place the proposed legisla· is called a. "hot cargo" clause. A proviso to picketing is secondary; or it would have had tion in clearer perspective. this section states that "nothing in this sub to hold all such work to be related and, Secondary boycotts were first regulated section (e) shall apply to an agreement be therefore, that all picketing at a. separate under the federal system through the anti tween a. labor organization and an employer gate is primary. trust laws. In Duplex Printing Press Co. v. in the construction industry relating to the Proponents of various proposed common Deering.a the Supreme Court held that the contracting or subcontracting of work to be situs legislation which bas been introduced exclusion of labor union activities from done at the site of the construction, altera over the years have felt that the distinctions the prohibition of the anti-trust laws effected tion, painting or repair of a. bullding struc between construction and manufacturing by Section 20 of the Clayton Act was re ture or other work." Thus, construction sites enunciated in the decisions of the NLRB stricted to an immediate employer-employee unions were given a special exemption from and Supreme Court are without merit. They relationship. Under that vie-w, economic ac the so-called "hot cargo" provisions of the maintain that under the present law an in tion by a. union against an employer whose Act. dependent subcontractor at a. manufacturing employees it did not represent, or whose A second decision which provides the site is not immunized from the labor dispute wages and working conditions were not the framework for the continuing cry which re between the manufacturer and his employees subject of the dispute, was regarded as an sulted in the proposed legislation is Elec if the work performed by the subcontractor unprivlleged restraint of trade and, there trical Workers v. Labor Boara,1 (General is integrated into the normal operations of fore, a. violation of the Sherman Act. Electric). The case a.rose out of a. strike by the manufacturer, while an identical sub Duplex was one in a series of opinions General Electric employees at the General contractor in the construction industry is which led to a strong public reaction against Electric Appliance Pa.rk in Louisville, Ken so immunized. It is submitted that this the class bias of the federal courts in labor tucky. The company utllized independent analysis ignores the practical and economic disputes. This finally culminated in the en contractors for construction work on new differences between manufacturing and con actment of the Norris-La.Guardia Act in bulldlngs at its facility, and !or work such struction sites. 1932. In U.S. v. Huteh.eson;' the Supreme as the installation and repair of ventilation ECONOMICS Court held that the rule of the Duplex case and !heating equipment, the retooling and In its introductory comments on common could not survive enactment of the Norris rearranging of operations necessary to the situs picketing, the senate Committee on LaGua.rdia. Act. Similarly, the Court held that manufacture of new models, and the "gen Labor & Public Welfare noted that "[T}he secondary boycotts were not regulated by eral maintenance work" at the plant. present law ignores the economic reality of the a.ntl-trust laws. To insulate GE employees from frequent the integral relationship between contractors THE TAFT•HARTLEY ACT labor disputes involving outside contractors, and subcontractors in construction, and im In response to the labor unrest at the the company had set a.side a. sepa.ra.te gate poses greater restrictions on the union right end of World War II, which was evidenced for employees of such contractors. The union of concerted action in the construction in by an increase in the number of secondary representing the manufacturing plant em dustry than in other areas of employment." 9 boycotts, Congress sought to limit the use ployees called a. strike against the company The "economic realities" to which the sen of that economic weapon, not by re-intro and picketed all gates, including the sepa ate Committee refers require careful exam ducing the anti-trust laws, but by adding rate gate. As a. result of the picketing, a ination. It is submitted that in reality the § 8(b) (4) (A) (now§ 8(b) (4) (B)) and§ 303a. majority of the employees of the independent present state of the law does not ignore eco to the federal labor law. The purpose of these contractors refused to enter the company's nomic realities but, in fa.ct, clearly reflects sections, a.s enunciated by the late Sena.tor premises. The Boa.rd found that the union's the unique problems and characteristics of Ta.ft, is to protect a third person "who is object in picketing the separate gate was to the construction industry. It is further sub wholly unconcerned in the disagreement enmesh "employees of the neutral employer mitted that the union right of concerted ac between an employer and his employees." 11 in its dispute with the compa~." tion in the construction industry is not only The pa.rticula.r aspect of secondary boy The Board held that this was a violation less restricted than in other industries but cott law which has ca.used the repeated cry of § 8(b) (4) (A). The Court of Appeals for also provides the construction worker with for common situs picketing legislation re the District of Columbia. Circuit granted en economic advantages not possessed by non sulted from the Supreme Court's interpre forcement of the Board's order. Review was construction workers. tation of § 8(b) (4) in Labor Board. v. Denver then granted .in the Supreme Court, which Proponents of common situs picketing ar Butld.ing Trad.es Council.8 In that case, the remanded the case to the NLRB with direc gue that this measure ls necessary to give genera.I contractor on a. construction project tions that the Board's original order be sus construction workers equality with manu subcontracted certain electrical work to a tained unless the separate gate was used to facturing workers in their ability to bargain non-union subcontractor who pa.id its work a. substantial extent by employees who per with employers. One of the clearest indi· ers less than union sea.le. When the non formed work necessary to the normal opera cations of a union's bargaining power is the union electricians reported to work, the tions of the manufacturer. wages pa.id to its members. Even consider Denver Building Trades Council picketed the The Court recognized that the nature of ing the seasonal nature of construction work, entire job site. The union work·ers employed the common situs problem called !or the de in strict monetary terms a construction by the general contractor honored the picket velopment of new concepts to protect the in worker makes fa.r more money than non line by refusing to enter the project. The terests of both the neutral employers and the Denver Building Trades Council wished to construction workers and has enjoyed great picketing union at the primary situs. The er wage increases than his industrial count force the non-union subcontractor off the Court stressed the importance- of the type of job, and the general contractor did, in fact, erparts. Average hourly construction wages work being performed by those who use the increased from $3.70 an hour in 1965 to $7.17 terminate his contract with the electrical separate gate and held that picketing a. sep subcontractor. an hour in 1975; the average increase for arate gate is primary strike activity when the manufacturing wages was from $2.61 an hour The Supreme Court affirmed a ruling of work of the secondary employer relates to the NLRB which had held that be-ca.use the in 1965 to $4.76 and hour in 1975. Other in that of the primary employer. The Court also dustries fare less well when compared with general contractor and subcontractor on a considered the implications arising from the building site were separate business entities, construction: the 1975 average hourly wage mingled use of the gate by several independ in mining was $5.20; in transportation $5.40; they were to be treated as neutrals with re ent contractors, some of whom perform spect to ea.ch other's labor controversies. in finance, $3.81; in services, $3.74; and in related work. It was indicated that it there 10 Thus, a. union having a dispute with one the wholesale and retail trade, $3.47. The were a. mingled use of the reserved gate, the wage settlements negotiated during the first subcontractor could not picket the- other picketing would be primary activity and per contractors and subcontractors at the job half of 1976 illustrate that this trend has missible unless the work was so insubstantial continued. A survey shows that, during the site without engaging in a. secondary boycott as to be de minlmis. under§ 8(b) (4). first half of 1976, 27% of manufacturing con In Build.ing Trad.es Council (Markwell & tracts included gains of 50¢ an hour; 37% THE LANDRUM-GRIFFIN ACT Hartz) ,8 the Board was presented with the of non-manufacturing contracts (excluding In 1959, Congress amended the Ta.ft opportunity to assess the applicability of the construction) included gains of 50¢ an hour; Hartley Act to eliminate certain "loopholes" General Electric related-work concept to a. while 51 % of construction contracts provided in the 1947 prohibition against secondary primary employer in the construction indus median gains of more than 50¢ an hour.n boycotts. These amendments enlarged the try. The Board held that Denver Building In addition to enjoying higher hourly means and objects prohibited under § 8(b) Trades prohibited the application of the (4) and added a. new § 8(e) prohibiting related-work concept to the construction in wages than other industries, construction agreements which were thought to facili dustry. The Court of Appeals affirmed, hold unions enjoy special rights not avallable to tate secondary boycotts. In addition, _viola ing that General Electric did not deal with other unions. Construction contracts a.re tions of § 8(b) (4), as a.mended, but not of the construction industry and that the treated differently under the National Labor § 8 ( e) , were made subject to suits for actual related-work rule was not one of general ap Relations Contract-bar rules. ~ Construction damages under § 303. plication. Had it been held that the related unions have the right to pre-hire agreements, Section 8(e) makes it an urualr labor prac work concept o! General Electric applied to exclusive hiring hall agreements, and are tice for any labor organization and any em the construction industry, the Board would exempt from the ban on "hot cargo" agree- ployer to enter into any contract or agree have been forced to reach one of two con ments. ment whereby the employer a.grees to cease clusions: either it would have bad to ignore Proponents of common situs picketing also doing business with any other person. This the realities o! the construction picketing advance the proposition that the relationship situation and hold that such work is un between contractors and subcontractors at a. Footnotes at end of article. related· and, therefore, that separate gate construction site is similar, if not .identical, January 20, 1977 CONGRESSIONAL RECORD-SENATE 1893 to the relationship among employers at a stoppages for contracts which would have :1254 US 443 (1921). 'f I manufacturing site. In support of this rea expired after the proposed completion date 4 312 us 219 (1941). soning, it is atgued that contractors and sub but which now will expire during construc G 93 Cong. Rec. 4198. contractors at a construction site are "joint tion due to extended delays caused by com e 341 US 675 (1951) 19 LC 11 66,347. venturers," rather than neutral employers. plete shut-down of the construction site. 1 366 us 667 (1961). An analysis o! the relationship between Contractors' costs will rise according to s 155 NLRB 319 ( 1965), enforced, 387 P. 2d contractors and subcontractors at a con the difficulties they encounter in completing 79 (CA-6 1967) 56 LC 1112,322. struction site reveals that this joint venture their projects. Additional financing may be o Report with Supplemental & Minority relationship does not, in fact, exist. The key come imperative. In industrial or commercial Views (to accompany S. 1479), Equal Treat to any Joint venture relationship is control, construction projects these increased costs ment of Craft & Industrial Workers, Com more specifically the control that one joint will be reflected in increased rentals or costs mittee on Labor & Public Welfare, Oct. 29, venturer can exercise over the labor relations of production. In turn, these increased rental 1975, p. 10. 1 of one of the other joint venturers. Contrac and production costs will necessarily be re 0 "Monthly Labor Review," Bureau of tors and subcontractors negotiate and main flected in the price- of reta.11 goods .and serv Labor Statistics, August 1975. tain independent labor policies. Therefore, ices. 11 Median Negotiated Wage Gain, First Half one contractor cannot exert any effective Figures supplied by the General Building 1976, Survey by the Bureau of National A!· measure of control over the labor relations Contractors Association, Inc. for construction fairs, Inc., 92 LRR 281. of the otber. The ~neral contractor, al during 1973-1975 u in the metropolitan 12 92 LRR 120, June 7, 1976. though he usually must employ the services Philadelphia area a.re illustrative. Metro 1a "Monthly Labor Review," Bureau of La of one or more subcontractors and coordinate politan Philadelphia., consisting of the city bor Statistics, August 1975. their work, has no direct contractual rela and its four surrounding suburban coun 14 Commercial, industrial and institutional tionship with any of the employees of these ties, provides an excellent survey of the mix jobs only. subcontractors. ture of light and heavy construction projects u Union contracts: $684,827,703; non In light of their independent activities and found in a typical urban area. Within the union: $80,703,585. lack of contractual relationship with, or city limits, an average of 88.3% of all proj 16 At $135 billion-a-year total output, it effective control over, the employees of other ects over $50,000 were union Jobs, compared accounts for approximately 10% of the GNP, contractors, the contractor and subcontrac to 43.3 % non-union in the four-county area according to the Dept. of Commerce. It em tors at a construction site are not "joint ven where light construction ls paramount. How ploys about one out of every seven employed turers." The reasoning which the proponents ever, based on dollar amounts, unions con Americans. of common situs picketing offer would make trolled virtually 99% of the work in Phil the employees 0: one contractor the employ adelphia and 72 % of the work in the coun ees of all the contractors at a construction ties. In 1975 al-One, union contracts accounted -site and, thereby, ellmlna.te the status of for over 550% more, 1n dollar amounts, than SENATE VETERANS' AFFAIRS each employer as an independent contractor. non-union projects in the metropolitan COMMITTEE IMPAcr ON THE INDUSTRY a.rea.1:. If common situs picketing legislation simi ' Translating these figures into forecasts, the Mr. TALMADGE. Mr. President, the lar to the 1975 bill is passed by the next Con urban areas, which traditionally experience Georgia House of Representatives, now gress, it will certainly have a disastrous effect a higher cost of living with a lower per capita in session in Atlanta, has adopted two on the construction industry, as well as on income level, will suffer most froni increased resolutions which, for myself and my construction costs. Consumers in these areas the nation's economic recovery. Common colleague, Senator NUNN, I bring to the situs picketing legislation will not only ca.use will experience higher housing costs and higher costs of goods and services due to attention of the Senate, and ask unani an increase in the total number of strikes in mous consent that they be printed in the industry, but will also increase the extent the increased cost of construction. of damage caused by ea.ch strike due to the An area of _particular concern is the light the RECORD. conferral of secondary boycott power on the construction industry. The majority of non There being no objection, the resolu unions. union workers a.re concentrated in this area. tions were ordered to be printed in the If the organizational campaigns envisoned According to Federal Mediation & Con by the AFL-CIO occur as a result of the en RECORD, as follows: ciliat1on Service Director James F. Scearce, actment of common situs legislation, this A REsoLUTION as of June 1976 the incidence of strikes in area of the industry would most likely bear Urging the United States Senate to retain the construction industry has been about the brunt of work stoppages. This would un the Senate Veterans Affairs Committee as a half of what it was in 1975 due largely to the settle production just when the industry can ~tanding Senate committee; and for other tndustry's slow recovery from the recession.12 least afford it. purposes. With the increased bargaining power of the Construction is the largest industry in the Whereas, members of Congress rely heav constl'uction unions ma.de possible by com nation 10 and, as such, must play 11.n impor ily upon- the.tr professional committee statrs mon situs picketing legislation and the pro tant role in promoting over all economic re to assist them in making decisions concern posed use of common situs picketing as an covery. The enactment of common situs ing legislation; and organizational tool, it is dear that more fre picking legislation would cause costly dis Whereas, the members of both the Veterans quent, more lengthy and more costly strikes putes in this industry, thus delaying general are likely to occur. · Affairs Committees in Congress have capable, economic recovery. efficient and intelligent staff assistants to ad 13 Department of Labor statistics graphi CONCLUSION vise them; and cally lllustra.te that the construction indus try has been especially ha.rd h1t by the recent The fortuitous timing of the presidential Whereas, 1f the Senate Veterans Affairs economic recession. Employment 1n all con election campaign is perhaps the only thing Committee is abolished and its function tract construction has dropped from 4,058,- -which prevented union success in this session merged with other programs, the expertise 000 in May, 1974, to 3,465,000 in May, 1975. of Congress. There is no question that the of the present staff will be lost or mingled Unemployment in the industry was 21.8% in battle will begin with renewed vigor in the with other duties; and June, 1975, as opposed to 10.4% in June, 1974. next session. · Whereas, abolishment of the Veterans Af During 1976, unemployment has remained at In this coming session, Congress can ill af fairs Committee in the Senate will seriously 18 % , although this indicates a slight im ford to ignore the nation's sagging economy; 1mpede the abUlty of Congress to deal ef provement In the industry's economy. If the certainly it will seek to enact legislation that fectively with veterans' affairs, and such ac projected increase in number and length of wlll promote economic growth. One of the tion by the Senate will constitute a major strikes due to common situs picketing oc key elements in the nation's economic growth step backwards in our Nation's continuing curs, it is likely that these figures will worsen is a healthy construction industry. efforts to provide quality care and service and hinder the industry's economic recovery. Common situs picketing legisla.tion ls not for our country's twenty-nine million (29,- the answer to the problems that pla.gue the 000,000) veterans. Perhaps the most alarming result of the construction industry, but wlll tend to ex Now, therefore, be it resolved by the House enactment of common situs picketing legis acerbate them. It is further submitted that, lation will be the increase in cost of each in of Representatives that this Body does here with the increased leverage that common by urge the United States Senate to vote in dividual strike, and the resulting increased situs picketing would give to the building costs of construction as a whole. In the pa.st, favor of retaining the senate Veterans Af trades unions, the construction industry's fairs Committee :as .a 'Standing Senate com there have always been work stoppages which economic recovery would suffer a tremendous contractors have been able to plan around. mittee and a.gaihst .all efforts -to abolish or setback.. Congress should not place the build dilute the functions or the Senate Veterans There are various steps on the construction ing trades unions' interest in strengthening Affairs Committee. ladder which may be skipped and returned to their power before that of economic recovery as the need arises. Construction projects of the construction industry and the nation. Be it ffl.tther resolved that the Clerk of which previously could have continued to the House of Representatives ls hereby au operate during strikes involving a few work FOOTNOTES thorized and directed to transmlt. an appro ers would be shut down completely. Contrac 1 Report with Supplemental & Minority priate copy of this Resolution to our two tors who in the past were able to calculate Views (to accompany S. 1479), Equal Treat United States Senators from Georgia, the completion dates and costs based upon work ment of Craft & Ind. Workers, Committee on Honorable Herman E. Talmadge and the stoppages due to contract expiration may Labor & Public Welfare, Oct. 29. 1975, p. 43. now have to calculate for additional work :s Ibid., p. 10. Honorable Sam A. Nunn, Jr. 1894 CONGRESSIONAL RECORD-SENATE January 20, 1977 A RESOLUTION ratifying the Genocide Convention, Mr. President, I ask unanimous con Urging the designation of the North DeKalb America has taken an "I don't care" sent that William Colby's article be Human Service Center as a priority project attitude. printed in the RECORD. to be funded with federal public works funds; There being no objection, the article and for other purposes. The Genocide Convention basically Whereas, DeKalb County has applied for condemns genocide, and sets up struc was ordered to be printed in the RECORD, public works funds from the federal govern tural guidelines for the trial and pun as follows: ment; and ishment of guilty offenders. It may not VIETNAM: A WARRIOR'S PRESCRIPTION FOR Whereas, DeKalb County received no funds stop genocide, but it will lessen its oc PEACE despite considerable staff time and expendi currence. It is like the Geneva Conven (By William E. Colby) tures for plans; and tion, which lessened, but did not stop, American MIAs, draft evaders and desert Whereas, it is the intention of DeKalb POW abuse. ers dominate our policy discussions of how County to use these funds to construct the to close the book on our difficult Vietnam North DeKalb Human Service Center, a. train The Genocide Treaty is in the best :experience. Hundreds of returned POWs, ing center which ls desperately needed for interests of the United States. Signing thousands of relatives mourning the sacri the profoundly retarded; and the treaty would improve our interna fice of their loved ones, hundreds of thou Whereas, the present facility does not meet tional relations. Prospects of world peace sands o! Vietnam veterans a.11 can for equal fire or health codes; and stand to gain by an American signature. consideration as we attempt to put Vietnam Whereas, the property for the North DeKalb Mr. President, the eyes of the world, in lt.s proper historical perspective. But these Human Service Center ha.s been donated to and more importantly, the eyes of God, are all Americans, a.nd the Vietnamese also PeKa.lb County by the federal government; affected by the wa.r are hardly part of our and are upon us. I urge the Senate to ratify the Genocide Convention. debates. Whereas, DeKalb County has expended This American dimension to Vietnam long public funds for demolition of the structure warped American policy. Our disdain for which wa.s previously located on this prop President Ngo Dinh Diem's Mandarin char erty; a.nd VIETNAM U.N. MEMBERSHIP acter led to his overthrow-and death. Our Whereas, the Department o! Health, Educa "smart bombs" destroyed trucks and trains tion and Welfare has notified DeKalb County Mr. STEVENSON. Mr. President, I but not bicycle porters. Our conception that of plans to reclaim said property unless a believed it a mistake for the departing modern war is fought by soldiers delayed fa.cil1ty is built and is in operation by No administration to deny U.N. member for yea.rs our support for a "people's war" vember 1, 1977; and ship to Vietnam last fall and said so at in South Vietnam. Whereas, a. new public works bill is antici the time. It was an act which was seen by Eventually, we turned to "Vietnamlzation." pated a.s a priority in the forthcoming Con our allies as well as our adversaries as Five hundred thousand weapons were dis gress. mean-spirited and petty. It was un tributed to South Vietnamese villagers to Now, therefore, be it resolved by the House worthy of a great nation with the re use against those they viewed as enemies. of Representatives that the members of this sponsibilities of world leadership. I am Five hundred thousand American troops were body hereby urge the President-elect of the removed from Vietnam. But even then we United States, the Honorable James E. Carter, glad to see that William Colby, writing left American guns and tactics, useless when Jr.; the Department of Commerce-Economic for the Washington Post, shares the American ammunition and American-scale Development Administration; the Honorable view that Vietnam should not be barred logistics were cut off. Herman Talmadge; the Honorable Sa.m Nunn; from the U.N. Colby, with more experi As we formulate our policy for the future, the Honorable Elllott Levitas; and other ence and more of a personal stake will we make the same mistake? wm we members o! the Congress of the United States in the Vietnam war than any of us in concentrate on the American dimension and to take a.ll actions necessary to insure that this Chamber, urges "a turn away from view Vietnam only as it affects America? the North DeKalb Human Service Center the past, from recriminations over brok Or can we formulate a policy a.nd program project be considered a.s a priority project en promises and antagonistic policies, to that wlll reflect the real interests o! Amer to be funded with the next public works ica-and of the Vietnamese people whose funds which become available and to insure ward a future of mutual respect and re tenacity has carried their national integrity that, in view of DeKalb County's expendi pair of the damages of the war." through more than 2.000 yea.rs of history? tures, an extension be granted for the con "The first step in such a process," he Yes, let us bind up our nation's wounds struction of the North DeKalb Human Serv writes, ''must be mutual recognition of over Vietnam. Let us put behind us the ice Center. the true future interests of each side, division between those who believed they Be it further resolved that the Clerk of including the reality that neither should bore the "torch of freedom" in Vietnam and the House o! Representatives is hereby au seek the humiliation of the other. Thus those who believed they lifted it in the anti thorized and directed to transmit appropri the new Vietnam properly asks recog war protests. Let us honor those who an ate copies of this resolution to the Honorable swered the call to duty, and let us welcome James E. Carter, Jr., President-elect of the nition of its victory and identity in in back to the national family those who fol United States; the Department of Commerce ternational circles such as the United lowed their consciences into disobedience Economic Development Administration; the nations. And the United States can or exile. Honorable Herman Talmadge; the Honorable properly ask that its recognition be re But let us not believe t-he task will be Sam Nunn; a.nd the Honorable Elliott ceived simply as such, and not cast in Levitas. ended when its American dimension is com terms of American penance." plete. The burdens borne by Americans were I hope that the new administration will sma.11 compared to those of Vietnamese. Fam find an early opportunity to indicate to ilies a.re still shattered, wounds unhealed, GENOCIDE AND THE BROTHER the Vietnamese Government that op lives disrupted-on a sea.le that would have HOOD OF MAN crushed a less stout people. These must position to its membership in the United receive equal attention when, as Lincoln Mr. PROXMIRE. Mr. President, the Nations has been dropped. By this and said, we "care !or him who shall have borne Bible says "thou shalt not kill.0 Yet man other displays of concern for the future the battle, and his widow, and his orphan," goes on slaughtering his fellow com of a people whose blood we have shed a.nd seek "a. Just, a.nd a lasting peace, among panions. We are all brothers and sisters, along with that of our own we can mend ourselves, a.nd with all nations." regardless of race, color, creed, or na some of the broken places in Southeast The 130,000 refugees who fled Vietnam in tionality. Unlike Cain, we are our broth Asia as well as here at home. I am con April 1975 have been well received in Amer er's keeper. Americans, as a nation, fident that a final acc~unting for the ica. Already, many a.re becoming productive missing-in-action, still an unresolved members of the American community, a.s must show this in their actions con only that latest of the many .waves of refu cerning the Genocide Convention. agony for many American families, will gees, exiles and afflicted who contributed To overlook a crime is as bad as com follow, if we will show the new Viet their talents to build this nation. But many mitting the crime yourself. We are over namese nation that we are prepared to, did not escape in those last days. Some still looking the abhorrent crime of geno as Colby writes, "formulate a policy and put to sea in small boats hoping to be picked cide. Americans, as a rule, have always program that will reflect the real inter up by passing merchantmen or to circumvent ests of America-and of the Vietnamese Vietnamese and Cambodian patrols to reach been concerned with the little man sanctuary in Thailand or Malaysia. Some of the oppressed peoples of the world. Yet people whose tenacity has carried their these are coldly by-passed at sea, some reach for the past three decades, neglect has national integrity through more than the "sanctuary" to find tha.t their presence seeped into the Senate Chamber. In not 2,000 years of history." is unwelcome either there or in farther ref- January 20, 1977 CONGRESSIONAL RECORD-SENATE 1895 uges, some die from the rigors of "the sea or tribution. In return for its assistance, it can riety of important accounting areas. hostile patrols. ask that the family ·members of those who Each standard bears the hallmark of this Many remain in Vietnam, it not being "re escaped in 1975 be permitted to leave and educated" in camps, still held without com join their families. It could also request that highly skilled. craftsman and his wide munication or possibility of joining their those who served the United States during range of experience. While I have even, families who were lucky enough to escape the war, or those closely associated with it confidence that the Cost Acconnting in April 1975. Many others a.re in Laos and in the South Vietnamese government, should Standards Board will continue to be the Cambodia, where they too once looked to also be allowed the 1954 option of exile from architect of standards of recognized U.S. support of their struggle, if not with the new Vietnam. If the new masters of quality, the task before them will be the pervasive American presence that char Vietnam truly wish to build a new society, made more difficult by the loss of this acterized Vietnam. Some idea of the possible they should release those who fought against numbers of those who identified their ca.use valued staff member. it and wm resist becoming a. part of it. To a degree, not often applicable to with America can be judged from the 900,- As an aspect of 1;he look ahead rather than 000 who chose to leave North Vietnam in backward, both sides could also agree to con people completing their careers, it can 1954, when a three-month period of grace to sign the misdeeds of the past to the mists of genuinely be said that William Parker do so was a provision of the accords that history, either air bombing or rockets, either has earned his retirement. Along with recognized that North Vietnamese victory. grenades in marketplaces or "search and the many friends that he has made over And many others in all three Indochinese destroy." They could accept the impossibility the years, I want to add my congratula nations were affected by U.S. power: the of apportioning blame for the wrongs of more tions and to wish him well in his future bombed bridges and depot centers of North than a decade of war. Vietnam, the wounded and maimed through endeavors. out the peninsula, the widows and orphans Within its own jurisdiction, each side can, of course, act on its own to repair the dam of our erstwhile enemies and allies. Debate ORDER FOR RECESS UNTIL 2 P.M. a.bout whether these injuries were caused by age of the war. Vietnam's pride in its sacrifice Americe.'s "best and brightest," North Viet and victory will become a chapter in the ON MONDAY, JANUARY 24, 1977 namese determination to dominate Indo several mUlenia of Vietnamese history. "Re education" as a genuine process and not a Mr. ROBERT C. BYRD. Mr. President, china or anti-colonial revolutionary nation now that we have reached agreements on alism, can be left to the historians. The real euphemism for imprisonment can lead many challenge is whether the nation that rebuilt Vietnamese voluntarily to accept the new time for debate on the nominations of and repaired its allies and enemies of World Vietnam, and with less cost than the brutal Mr. Griffin Bell and Mr. Joseph A. Cali War II can heal the wounds of its allies and Cambodian tactic of class-elimination. Amer fano, Jr., I ask unanimous consent that enemies in Indochina., to achieve a.n equiv ica can give honor to those who responded when the Senate completes its business alent relationship of respect and friendship to its call to duty to serve in Vietnam and today, it stand in recess until 2 p.m. on with them. Can we apply another phrase to those whose consciences led them to pro Monday next. test or to refuse the call. from our Declaration of Independence so The PRESIDING OFFICER. Is there admired by Ho Chi Minh, that we hold Viet But America has an obligation not only to nam, "as we hold all Mankind, Enemies in its own citizens and opponents with respect objection? The Chair hears none, and it War, in Peace Friends"? to Vietnam. To fulfill its commitments there, is so ordered. The situation in Indochina is, of course, it must also rehabilltate those who fought not the same as that after World War II. beside us and looked, and still look, to a America faces a victorious rather than a. de different future than the war's outcome has ORDER FOR THE INTRODUCTION OF feated enemy. And the North Vietnamese brought. Some may be rehabilitated else BILLS, RESOLUTIONS, AND PETI David does not stand over a prostrate Goll where, but for many their only hope is to TIONS WITHOUT A PERIOD FOR a.th, but faces one with great remaining come to our shores, whether they a.re today THE TRANSACTION OF MORNING power and responsibility in the world. in Thai refugee camps or looking out from BUSINESS ON MONDAY Neither can work his will over the other, and the new Vietnam of which they will never both can be prickly with pride in their fu be a part. When they, too, a.re part of the Mr. ROBERT C. BYRD. Mr. President, ture contacts. The way out, therefore, re American community from which they had I ask unanimous consent that on Monday quires a turn a.way from the past, from recri assurances of support in battle, then we can Senators may present statements in the minations over broken promises and antag assert that we fulfilled our obligation to RECORD, as in legislative session, intro onistic policies, toward a future of mutual them in peace. duce bills, resolutions, petitions and me respect and repair of the damages of the war. morials without there being a period for The first step in such a process must be the transaction of routine morning busi mutual recognition of the true future in COMMENDATION OF BILL PARKER terests of each side, including the reality ness. that neither should seek the humiliation of Mr. PROXMIRE. Mr. President, in The PRESIDING OFFICER. Without the other. Thus the new Vietnam properly early 1971, the Cost Accounting Stand objection, it is so ordered. asks recognition of its victory and identity ards Board, which was established under in international circles such as the United Public Law 91-379, set about the task of ORDER FOR THE INTRODUCTION OF Nations. And the United States can properly promulgating cost accounting standards ask that its recognition be received simply BILLS, RESOLUTIONS, AND PETI as such, and not cast in terms of American for national defense contractors and sub TIONS WITHOUT A PERIOD FOR penance. Intermediaries such as the World contractors. In the relatively brief period THE TRANSACTION OF MORNING Bank and the Asian Development Bank a.re of time that has followed., the Board has BUSINESS ON TUESDAY already acting to reduce the political fric promulgated a number of standards tions that direct dealings might bring, but which I believe will profoundly affect the Mr. ROBERT C. BYRD. Mr. President, nonetheless start the process of healing. And Government contracting business. I ask unanimous consent that on Tuesday a group of American anti-war activists helped One of the charter members of the Senators may present statements in the the process in their recent protest against Board's small staff was William Parker RECORD as in legislative session, introduce violations of human rights by the victorious who has been one of four project direc bills, resolutions, petitions and memorials Vietnamese regime. They demonstrated that without there being a period for the their opposition to earlier American policy tors. Mr. Parker, in addition to the quali was based on their view of principles, not fications of a CPA, brought to the Board transaction of routine morning business. blind support of the Vietnamese cause, then a broad base of experience and knowledge The PRESIDING OFFICER. Is there or in the future. derived from important work that he objection? Each side in such a new relationship can had previously performed. as a member · Mr. BAKER. Mr. President, reserving ask actions by the other beyond mere rec of the staff of the Senate Committee on the right to object, do I understand the ognition. Vietnam can ask assistance, direct Aeronautical and Space Sciences and as request to be that there be aut:!:lority for or indirect, from the United States to rebuild. a member of the General Accounting Members to introduce bills, memorials, It can also ask assurance against efforts, Office. petitions, and resolutions as if in morning overt or covert, against its new sovereignty, business but there be no morning hour or either by Americans or those benefitting It is with substantial regret that I note from its protection. the retirement of Mr. Parker. Through morning business contemplated? On the other side, America has asked for out his years of service, he has epitomized Mr. ROBEliT C. BYRD. The Senator an accounting of its MIAs. It also can ask the finest standards of public service. At is correct, that there be no period for for humanitarian treatment of its former the Cost Accounting Standards Board, he such but that Senators be permitted to allies and associates still within Vietnam, has been a key figure in the work of the include such in the RECORD as in legisla t}lat silence from them does not mask re- Board in developing standards in a va- tive session. 1896 CONGRESSIONAL RECORD- SENATE January 20, 1977 Mr. BAKER. What about statemen~? have about several of the nominations, tures for new plant and production by the Mr. ROBERT C. BYRD. The same specifically that of Michael Blumenthal, private sector. thing. of Juanita Kreps, of Cecil Andrus, and of "I hope that Mr. Blumenthal and the Car Mr. BAKER. They would be included? BROCK ADAMS. ter Administration will move with great cau Mr. ROBERT C. BYRD. They would be tion and restraint in attempting to stimulate These are very limited reservations. I an economy that appears to be recovering included in the RECORD. just think it is important that they be in steadily. Too drastic a stimulus may throw Mr. BAKER. I thank the majority the RECORD so that future evaluation can us into another major cycle of increased leader. be correct and adequate. unemployment that could far outweigh the The PRESIDING OFFICER. Is there Mr. President, I have voted in favor of short-term benefits." objection? confirmation of Juanita M. Kreps to be Without objection, it is so ordered. Secretary of Commerce; Cyrus Vance to SECRETARY OF COMMERCE-JUANITA M. KREPS Mr. ROBERT C. BYRD. Mr. President, be Secretary of State; BROCK ADAMS to be "In the case of Dr. Kreps, I do vote to con under the order previously entered, the Secretary of Transportation; Thomas firm with some reservations. In particular, I Senate will stand in recess until Monday Lance t-0 be Director of the Office of am concerned that there is little in her back next at 2 p.m. Am I correct? Management and Budget; W. Michael ground that provides experience in dealing The PRESIDING OFFICER. The Sen Blumenth.al to be Secretary of the Treas with the overall duties and responsibilities of ator is correct. the Department of Commerce; even though ury; Charles L. Schultz to be a member of ROBERT C. BYRD. Very well. that background is extremely impressive with Mr. the Council of Economic Advisers; Jo Mr. BAKER. Mr. President, I have a respect to experience in management in cor seph A. Califano, Jr., be Secretary of unanimous-consent request, I believe, to porate policy and in education. I hope that Health, Education, and Welfare; Cecil A. Dr. Kreps finds through the proper use of from the distinguished Senator from New her subordinates a means to rapidly increase Mexico, and, in the meantime, while he Andrus to be Secretary of the Interior; Dr. Harold Brown to be Secretary of De her capabilities with respect to the specific is reaching the floor, may I take 1 min problems that will concern the Department ute to report on a matter of importance fense; and BoB BERGLAND to be Secretary of Agriculture. of Commerce during her tenure as Secretary. I am sure to all of our colleagues? I particularly hope that her knowledge will Mr. ROBERT c. BYRD. Yes. As a member of the Senate Commerce expand so that as she said at her confirma and Finance Committees under tempo tion hearing, she will be capable of 'asking rary assignment, I had an opportunity to the right questions.' She will find that the question Dr. Kreps, Congressman ADAMS, Congressional Committees dealing with Com SENATOR BARTLETT Mr. Blumenthal, and Mr. Califano dur -merce will also be attempting to 'ask the BAKER. Mr. President, it has come ing the confirmation hearings. During right questions' as those Committees exercise Mr. their oversight responsibilities." to my attention, and I wish to apprise those hearings I urged each of them to our colleagues of the fact that the junior develop efficient management systems SECRETARY OF THE INTERIOR-CECIL B. ANDRUS Senator from Oklahoma and status of Ambassador Extraordinary and DEPARTMENT OF DEFENSE DEPARTMENT OF 'l'RANSPORXATION Plenipotentiary, and the Representative of Harold Brown, of California, to be Secre Brockman Adams, of Washington, to be the United States of America in the Security tary of Defense. Secretary of Transportation. Council of the United Nations. DEPARTMENT OF THE INTERIOR OFFICE OF MANAGEMENT AND BUDGET Cecil D. Andrus, of Idaho, to be Secretary of the Interior. Thomas Bertram Lance, of Georgia, to be Director of the Office of Management and DEPARTMENT OF AGRICULTURE CONFIRMATIONS Budget. Bob S. Bergland, of Minnesota, to be Secre Executive nominations r...>nfirmed by tary of Agriculture. COUNCIL OF ECONOMIC ADVISERS the Senate January 20, 1977: DEPARTMENT OF COMMERCE Charles L. Schultze, of the District of Columbia, to be a member of the Council of DEPARTMENT OF STATE Juanita M. Kreps, of North Carolina., to be Secertary of Commerce. Economic Advisers. Cyrus Vance, of New York, to be Secretary of State. DEPARTMENT OF HOUSING AND URBAN The above nominations were approved DEVELOPMENT subject to the nominees' commitments to DEPARTMENT OF THE TREASURY Patricia Roberts Harris, of the District of respond to requests to appear and testify w. Michael Blumenthal, of Michigan, to be Columbia, to be Secretary of Housing and before any duly constituted committee of the be Secretary of the Treasury. Urban Development. Senate.
EXTENSIONS OF REMARKS OCEANIC OIL POLLUTION which tanker accidents and offshore leaks 2. As "fallout" from the atmosphere, prob play a relatively small part-and they sug ably as particles or in rain. gest possible courses of action to control the we shall consider all these sources except HON. G. WILLIAM WHITEHURST problem. Revelle is director of the Harvard accidental spills as constituting the base load OF vmGINIA Center for Population Studies and former of oil polution in the sea. director of Scripps Institution of Oceanogra ACCIDENTAL OIL SPILLS IN THE HOUSE OF REPRESENTATIVES phy; Wenk, a specialist in ocean engineer At present, the average annual influx to Wednesday, January 19, 1977 ing and public affairs, ls a professor at the University of Washington; Ketchum is as the ocean from accidental oil spills through Mr. WHITEHURST. Mr. Speaker, I sociate director of Woods Hole Oceanographic out the world is probably about 200,000 tons. have the privilege of serving as a mem Institution; and Corino ls with the Esso Most of these spills are relatively small. Out ber of the board of directors of the Research and Engineering Company.) of 714 recorded accidental spills in U.S. wa At the present time, the most conspicu ters in 1968, approximately half were from Oceanic Educational Foundation, an or ships and barges, most of which were docked ganization which has as its goal the es ously detrimental effects of oil pollution of the ocean are localized in extent and are at the time of the accident. About 300 spills tablishment of world ocean education, caused by accidental spills in near-shore occurred from shore facilities of various covering the many aspects of the study of areas. These loci of concern, however, poten types, and a few resulted from ships dragging the sea, at all levels in the American tially include the coastal zones of every anchor across submarine pipelines in bays. school system, in order to bring the seas continent and every inhabited island so that Even under carefully controlled conditions into educational balance with the land the problem of accidental spllls ls of world accidental oil spills in port are negligible. to sustain the future prosperity, safety, wide significance. Projections of future Milford Haven, a relatively new British oil growth in ocean transport and offshore pro port, is adjacent to a national park, and great and security of citizens through knowl efforts have been made to control and pre edge of the world's oceans. duction of petroleum indicate that both the frequency and the damaging effects of local vent oil pollution. In 1966 the annual turn In that connection I recently received accidents are likely to increase. over at Milford Haven was 30 million tons a copy of Oceans: Our Continuing Fron Although accidental oil spills cause the with losses amounting to 2,900 tons or 0.01 tier, the courses by Newspaper Reader most evident damage to ocean resources, they percent of the total amount handled. which is a project of the University of make up a small percentage of the total Accidental oil spills resulting from strand amount of oil entering the marine environ ing or collision of large tankers and from California, San Diego, university exten accidents to offshore drilling or producing sion program. At this point in the REC ment. At least 90 percent of this amount originates in the normal operations of oil wells deserVl?dly attract much public atten ORD, I would like to share with my col carrying tankers, other ships, refineries, tion because of the extensive damage done leagues one of the articles from that ex petrochemical plants, and submarine oil to beaches, recreational areas, and harbors. cellent book. It was written by Roger Re wells; from disposal of spent lubricants and The wreck of the Torrey Canyon, which dis velle, Edward Wenk, Bostwick Ketchum, other industrial and automotive oils; and by charged 118,000 tons of crude oil in to the sea, and Edward Corino, and it deals with the fallout of airborne hydrocarbons emitted by is the best known example although some subject of oceanic oil pollution. It is motor vehicles and industry. The extent and what smaller tanker wrecks have occurred character of the damage to the living re elsewhere, such as off Nova Scotia and Puerto well worth reading, as is the rest of the Rico. All large accidental spills to date have material in this book, and it points up the sources of the sea from this "base load" of oil pollution is little known or understood. occurred fairly near shore, and the spreading need for a concerted, international effort In the long run it could be more serious, be sheet of oil has drifted or has been blown by to prevent further damage to the oceans cause ~ore widespread, than the localized winds onto beaches and into shallow water of this world. damage from acclden tal spills. areas. Present efforts to contain and to dis I have previously mentioned my bills The magnitude of oceanic oil pollution is pose of the oil before it does extensive dam toward this end, H.R. 711 and 712, and likely to increase with the worldwide growth age have been singularly ineffective. Agents of petroleum production, transportation, and such as talc, clay, and carbonized sand have House Joint Resolution 134, and I ear consumption. World crude oil production been used to sink the oil. Various dispersing nestly hope that legislation of this kind reached 2 billion tons per year in 1969, and agents have been developed which break up will receive favorable consideration in production of 3 billion and 4.4 billion tons the oil into minute droplets that are subse this session. Criteria for tanker safety per year is predicted for 1975 and 1980, quently dispersed throughout the water. must be established, and international respect! vely. Earlier versions of these chemical dispersants treaties need to be brought up to date were more toxic than the oil, but a number SOURCES OF PETROLEUM HYDROCARBONS IN THE of essentially nontoxic dispersants are now and promptly ratified. We have very lit SEA available. Even with a nontoxic dispersant, tle time left. Petroleum hydrocarbons enter the sea: dispersed oil is more toxic to marine life than OCEANIC OIL POLLUTION 1. Directly an oil slick on the surface, primarily because (By Roger Revelle, Edward Wenk, Bostwick a. in accidental spllls from ships, shore fa of its increased availabllity to the organisms. cilities, offshore oil wells, and underwater With all our vast inventory of chemical Ketchum, and Edward Corino) pipe lines; (011 pollution is not confined to coastal agents, the best and safest means of disposal b. from tankers flushing oil tanks at sea; is apparently still absorption on chopped areas; it poses an eventual threat to the c. from dry cargo ships cleaning fuel tanks ecosystems of the oceans of the world. straw, if conditions permit. and bilges; The danger of large-scale accidents is in Furthermore, as consumption of oil increases d. from leakage during normal operation in our ever-expanding technological society, creasing with the increasing size of tankers. of offshore oil wells; Four 327,000-ton ships are already in opera the problem of oil pollution is also likely e. from operation of refineries and petro to increase. In the following selection, Roger tion; vessels of 500,000 dead weight tons will chemical plants; soon be constructed, and 800,000-ton vessels Revelle and three other experts analyze the f. in rivers and sewage outfalls carrying extent and character of oil pollution-in have been projected within the next few industrial and automotive wastes; and years. These monster ships have so much