November 16, 1989 EXTENSIONS OF REMARKS 29607 EXTENSIONS OF REMARKS UNDERESTIMATING THE COST creases under statehood which differ radi­ exemption that would be precipitously OF STATEHOOD IN PLEBISCITE cally from those of the Energy and Natural ended · by the advent of statehood. The ON PUERTO RICO'S FUTURE Resources Committee Report. The cumula­ elimination of federal tax exemption would tive difference in the two estimates over have at least three major effects upon the just four years is $5.711 billion, a significant island's economy. First, it would deprive the HON. JAIME B. FUSTER sum that brings up estimates of additional local government of most of the funds it OF PUERTO RICO federal expenditures for Puerto Rico to now has, largely diminishing its role as the IN THE HOUSE OF REPRESENTATIVES $9.33 billion in the first 4 years of state­ main support of the Puerto Rican economy. hood. Exemption from federal taxes has permit­ Thursday, November 16, 1989 Even CBO's very broad assessment is not ted Puerto Rico to support a large public Mr. FUSTER. Mr. Speaker, once again I call yet complete. For one, the Congressional sector providing vital public services and to the attention of my colleagues develop­ Research Service had identified for us an employing more than a third of the work ments in the ongoing legislative process for a additional $107,778,000 which Puerto Rico force. Financing for this huge public sector congressionally sanctioned political status would have received in Title I education comes mainly from Puerto Rico income plebiscite in Puerto Rico. As you know, this funds in 1989 had we been a state. Using the taxes which are higher than federal income 5 percent inflation rate that the Senate taxes and local excise taxes which are referendum, which we hope will be held in Energy and Natural Resources Committee higher than most state sales taxes. To su­ 1991, will enable Puerto Ricans to decide be­ Report used, this adds another $538 million perimpose federal taxes upon them would tween statehood, independence or an en­ to the cumulative <4 years> underestimate of cause the burden of taxation ,upon Puerto hancement of the existing Commonwealth the Committee Report, hiking current esti­ Rico's narrow tax base to be unbearably status, which I favor. mates of additional federal expenditures heavy or would force a massive reduction in Far-reaching legislation to this end was ap­ under statehood to almost $10 billion for public services and public employment. It is proved in August by the Senate Energy and the 4 year period. estimated that the removal of federal tax Natural Resources Committee, which is the The potential effect of statehood on exemption under statehood could deprive successor to the old Senate Interior and Insu­ Puerto Rico's economy is another vital the local government of 60 percent of its aspect not covered in the Committee Report current revenues with no new federal ex­ lar Affairs Committee. Hearings on the food or in CBO's analysis. This is an issue that penditures to compensate for this particular stamp aspect of S. 712, the Puerto Rico this Committee must address because other­ loss

e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. 29608 EXTENSIONS OF REMARKS November 16, 1989 loss of local tax autonomy which would ac­ ducting the most encompassing study ever One with One pairs immigrants or refugees company statehood would be a severe blow realized on this matter, concluded, that who are international newcomers to our coun­ to the financing of construction in Puerto "unless an appropriate substitute for Puerto try from all over the world with American vol­ Rico, causing a serious decline in jobs in this Rico's present economic arrangements can sector and. the removal of hundreds of mil­ be provided, it is clear that statehood • • • unteers. The volunteers tutor the newcomers lions of dollars from the island's economy. would have severe and probably disastrous in learning English as a second language, and It is important to note that these three consequences. • • • It is not helpful to the teach them the necessary skills needed in major adverse effects of the removal of fed­ people of Puerto Rico to claim that the eco­ coping with everyday American life as the eral tax exemption are separate and distinct nomic question of statehood is not poten­ newcomers adjust to their new world. The from each other. tially a very serious one". This assessment partners work together for a minimum of 6 In other words, these are consequences was essentially ratified in 1976 in the Tobin months for 3 hours every week. that fall upon different sectors of the island Report on Puerto Rico's economy, prepared The One with One Program trains American economy. When one considers them jointly; by Nobel laureate and Yale University econ­ that is, when one takes into account their omist, Professor Tobin; and confirmed again tutors to be a listening, caring ear, to guide cumulative or synergetic effect, as one must in 1979's Krep's Report on Puerto Rico's and .counsel the newcomer in understanding in an integrated economic model, it becomes economy, by the United States Department and taking initiative in areas as diverse as obvious that it may be very foolish to esti­ of Commerce. learning the public transportation system, mate Federal Treasury costs of statehood We in Puerto Rico have a right to know shopping, using our health care system, and for Puerto Rico without also examining the whether that assessment is still valid. And if finding housing. The newcomers are taught to question of how the Puerto Rican economy it is, as many of us believe it is, then we advocate for themselves, to protect their own is to survive without federal tax exemption. have a right to know what precisely are the rights, so they can in turn advocate for their The combined effect of the potential decline new arrangements that will substitute Com­ of all the major sectors of the Puerto Rican monwealth's strong economic advantages. families and friends. economy upon the advent of statehood We have a right to know what concretely Newcomers, through the development of lit­ makes this an essential issue to be studied will take the place of our existing tax incen­ eracy skills, become self-sufficient participants by those in charge of gauging the federal tives program which accounts for one of in our society and in everyday living. One with budgetary implications of Puerto Rican every three jobs in the island today. We One enables both tutor and learner to experi­ statehood. have a right to know what concretely will ence an increase in self-confidence and self­ Mr. Chairman and Members of the Com­ take the place of Puerto Rico's fiscal auton­ esteem, dignity and self-respect. mittee, to conclude my testimony, let me omy which has allowed the strong central­ I commend this program which addresses briefly mention a second different reason ized government of Puerto Rico to provide why this Committee should address the extensive health, education, housing and both illiteracy and racism, and fosters interna­ issue I have raised with you. No legitimate other vital public services to our large popu­ tional understanding and exchange. Mr. decision on the future status of the island lation of poor or low income citizens, serv­ Speaker, I wish to publicly thank Margaret Van can be made by Puerto Ricans unless we ices that no state government in the main­ Duyne, founder and executive director of One have been well apprised beforehand as to land can afford to offer at a comparable with One, for creating this program, and the the economic risks we might have to assume magnitude. We have a right to know if the many volunteers who have so unselfishly in order to attain statehood. As you know, island would become what the father of given of themselves and their time to benefit under Commonwealth status Puerto Rico modern Puerto Rico, Governor Luis Mufl.oz our society in helping others here and abroad. has experienced an impressive economic de­ Marin, once called a "beggar state", forever velopment. We have progressed from being dependent on federal welfare payments, They have all done a wonderful job. a "stricken land" and the "poorhouse of the where the productive sectors of the current Caribbean" to becoming the people with the economic structure are replaced by an ever UNITED STATES PLANS TO SELL highest standards of living in all Latin increasing federal dole. We deserve to know America. Under the existing economic ar­ what is your most considered judgment on SAUDI ARABIA 315 TANKS rangements, in all but four of the 37 years this crucially vital matter. of Commonwealth, the Puerto Rican econo­ Mr. Chairman, the growth of the Puerto HON. ILEANA ROS-LEHTINEN my has either matched or surpassed the Rican community has been bogged down for OF FLORIDA growth rates of the United States economy. too long because of the endless and barren In fact, in 25 of those 37 years our growth status debate. We can get out of this quag­ IN THE HOUSE OF REPRESENTATIVES has been markedly superior to that of the mire if you lend us a hand. Make this refer­ Thursday, November 16, 1989 mainland, roughly double most of the time. endum a really meaningful process by prop­ And yet, despite this remarkable pattern erly addressing this vital issue so that the Mrs. ROS-LEHTINEN. Mr. Speaker, rumors of growth, Puerto Rico's average per capita people of Puerto Rico can truly make an in­ regarding a sale of battlefield tanks to the income is still only one third that of the telligent choice. Saudi Arabian Army have been circulating for mainland, unemployment is still around 15 at least 6 years now. This rumor has now percent, and 43 percent of family house­ become reality. The Government of Saudi holds depend on federal aid to meet their ONE WITH ONE Arabia has requested the purchase of approxi­ nutritional needs. In the face of this stark mately 315 M 1A2 Abrams tanks, as well as a reality, statehood leaders in Puerto Rico are variety of support equipment and ammunition telling us that the eventual elimination of HON. JOSEPH P. KENNEDY II the economic advantages of Commonwealth, OF MASSACHUSETTS scheduled for delivery in the mid-1990's. The as would happen under statehood, will not IN THE HOUSE OF REPRESENTATIVES estimated value of this case is $3.1 billion. only not cause negative results in the island The M-1 Abrams is the U.S. Army's premier but that, to the contrary, economic growth Thursday, November 16, 1989 main battle tank, and is considered by many will be far superior to what we have experi­ Mr. KENNEDY. Mr. Speaker, I am pleased experts to be the best tank in the world. Its enced during the last four decades. State­ and proud to announce that the One with One only sale abroad has been . hood is portrayed as the panacea for the program in my home district of Brighton, MA According to the American Israel Affairs many complex and intractable social and has been selected to receive one of four 1989 Committee [AIPAC], the majority of the economic problems that Puerto Rico has international "Leaders of Readers" Recogni­ suffered for centuries. Puerto Ricans are M1A2's will presumably be based in northeast being told that with statehood unemploy­ tion Awards, sponsored by Family Circle Mag­ Saudi Arabia, covering the Iraq border. Some ment will nearly disappear, education and azine, the Council for Periodical Distributors will be put in the south, near the Yemens. An health care will be of the highest quality Associations, the International Reading Asso­ undetermined number of tanks are likely to be possible, our local roads will be like the best ciation and Pizza Hut, Inc. located at the Tabuk army base in the north­ interstate highways, there will be no home­ One with One, a remarkable international west, facing Israel. less, even crime will diminish. tutoring program founded in 1983, might be a In response to this development, specific We in Puerto Rico have a right to know solution to help solve some of our country's concerns brought to my attention by the Na­ whether or not the literacy concerns. One with One, which today tional Jewish Community Relations Advisory shares these alluring expectations about the bonanza that allegedly will accompany has a membership of over 900 partners from Council need to be taken into consideration: statehood. In 1966 the congressionally cre­ 39 countries, creates friendships between How many tanks will be close to the Israeli ated U.S.-Puerto Rico Status Commission, people of very diverse backgrounds in a way border? If the rationale of the tank sale is to headed by Sen. Henry Jackson, after con- that is mutu~lly satisfying. assist Saudi Arabia in defending against po- November 16, 1989 EXTENSIONS OF REMARKS 29609 tential threats from Iraq, there would be no SALUTING THE MEDICAL BIOL- ABORTION: WHOSE ISSUE IS IT ANYWAY?­ need to position this machinery near Israel's OGY INSTITUTE OF SAN POOR AND MINORITY WOMEN SPEAK OUT ON border. DIEGO, CA REPRODUCTIVE FREEDOM, WHICH FACES Will the Saudis have the option of deploying NEW RESTRICTIONS WITH THE SUPREME· COURT'S WEBSTER RULING the tanks outside Saudi Arabia? If the tanks HON. BILL LOWERY tions within the black extended family have these clinics is paramount to women whose outlawing federal funding of abortion. The provided an alternative to abortion. "From limited income does not allow for the luxury Missouri law's additional restrictions on the very beginnings," says Carr, "the of a private hospital. "The consequences [of state funds and support, combined with its thought of killing a child was outrageous to Webster] are appalling for women of color requirement of costly viability tests, will black families." and poor women," argues Leslie Wolf, exec­ make access to abortion extremely difficult Another alternative is advocated by a utive director of the Center for Women's for low-income women in that state and number of pogressive black ministers, in­ Policy Studies in Washington, DC. "Their others with similar laws. Many of these cluding the Reverend Calvin Butts, a promi­ rights will be most restricted." women simply cannot afford the costs of nent minister with the Abyssinian Baptist A RETURN TO "BACK ALLEY BUTCHERS"? the procedure at private hospitals and clin­ church in Harlem, . "Freedom of ics. choice is a divine right," says Butts. "In that Pro-choice advocates are concerned about the inherent danger to women who could EMERGING VOICES, DIVERGENT VIEWS regard, I am pro-choice, and I suggest that all Christian people are pro-choice." once again be forced to seek illegal abor­ The Webster ruling has reinvigorated tions. Says Sabrae Jenkins of the Women of both pro-choice and pro-life advocates, who THE CONSEQUENCES FOR TEENS AND MINORITIES Color Partnership Program: "You have to are preparing to fight at the state level now Given the problems of teenage pregnancy look at what women have done in the past" that the Court has moved the issue there. and persistent poverty in many minority to terminate a pregnancy, Jenkins explains. The National Abortion Rights Action communities, abortion rights and family "This includes not paying rent [so that they League reports that its national planning would seem to be closely connect­ can afford an abortion], maiming, killing and affiliate membership has risen 75 per­ ed. Yet family planning has generally been [themselves], and [unsafe] chemically and cent

u..__._ ..... __.. "-'------"·-~-&---·-1 ...... ··-----~---&~ ...... -· ...... _... _____ ...... _-..r...... _.L. .. ---.A...a.-. .... ~. -- -~ .... -..--~ ...._ ...... November 16, 1989 EXTENSIONS OF REMARKS 29619 [From the Washington Post, November 15, VOTING RECORD OF HON. by freezing all discretionary spending at 1989] DONALD J. PEASE Fiscal Year 1989 program levels and reduc­ ing Medicare funding by $2.7 billion. No. THE CHILD CARE CONFERENCE Failed 30-393. HON. DONALD J. PEASE (43) H. Con. Res. 106. Fiscal Year 1990 There is no reason why Congress can't OF OHIO Budget Resolution. Final passage of the bill pass a decent child care bill before it goes IN THE HOUSE OF REPRESENTATIVES setting ceilings of $1.351 trillion in budget home, and every reason why it should. The authority and $1.165 trillion in outlays. No. bills in conference represent a major ad­ Thursday, November 16, 1989 Passed 263-157. vance in federal assistance to the poor. If Mr. PEASE. Mr. Speaker, it has become my <48) H.R. 7. Vocational Education Reau­ the issue is held over, it will become a pawn practice to insert periodically in the CONGRES­ thorization. Passage of the bill authorizing in another budget battle and capital gains SIONAL RECORD a list Of key votes that I have $1.4 billion. Yes. Passed 402-3. tax dispute, to say nothing of normal elec­ cast in the U.S. House of Representatives. <54) H.R. 2145. United Nations Contribu­ tion-year politics. The full year could be tions. Authorizing the president to withhold The list is arranged in this manner: Each U.S. contributions to the U.N. if it admits lost. It's fine if Congress takes December item begins with the roll call vote number of off, but first it should pass this bill. the Palestine Liberation Organization as a the bill or resolution that the House was con­ member state. Yes. Passed 396-6. The House and Senate versions are al­ sidering, followed by the bill number and sum­ <65) H.R. 2072. Fiscal Year 1989 Supple­ ready partially reconciled, and the rest mary of the issue. This is followed by my own mental Appropriations. Passage of the bill should not be that hard. The most impor­ vote on the issue and the vote outcome. providing $3.7 billion in new budget author­ tant items is the large House increase in the This list of votes covers the period of Janu­ ity, including $822 million for anti-drug ac­ refundable earned-income tax credit, a wage ary 7, 1989 through October 19, 1989. tivities. Yes. Passed 227-197. <67) H.R. 2442. Anti-Drug Abuse Funding. supplement or negative income tax for the KEY VOTES OF CONGRESSMAN DON J. PEASE working poor with children. It has nothing Passage of the bill providing additional to do with child care, but combined with the (6) H.J. Res. 129. Congressional, Judicial, funds for programs authorized in the Anti­ and Executive Pay. Resolution disapproving modest increase just agreed to in the mini­ Drug Abuse Act of 1988, the additional the pay increases for the executive, legisla­ funds to be derived from transferring mum wage, it would constitute an important tive, and judicial branches proposed by the amounts already appropriated for research, boost in the incomes of the poor. For differ­ president under the Federal Salary Act of development, and testing of the Strategic ent reasons both parties favor the concept, 1967. Yes. Passed 380-48. Defense Initiative. Yes. Failed 205-213. though there are disagreements about the (8) H.R. 1231. Eastern Airlines Strike. Bill <74) H. Res. 146. U.S.-Japan Semiconduc­ amount, but this provision should pass with directing the president to establish an emer­ tor Agreement. Resolution calling on the the taxes to pay for it, which the conferees gency board to investigate and report with president to take action to enforce the semi­ have at hand. respect to the dispute between Eastern Air­ conductor agreement, and to prevent fur­ lines and its collective bargaining units. Yes. ther unfair Japanese trade practices. Yes. The conferees should also accept the Passed 252-167. Passed 416-0. Senate provision making the current child <14) H.R. 2. Minimum-Wage Increase. <75) H.R. 1101. Water Resources Research care credit refundable and available to those Amendment raising minimum wage to $4.55 Reauthorization. Providing $41 million an­ with incomes too low to owe taxes; this over 3 years and allowing a two month nually through Fiscal Year 1994 for water­ should be financed by lowering considerably "training wage" for employees taking their related programs. Yes. Passed 336-74. the upper-middle income range in which first job. Yes. Passed 240-179. <76) H. Con. Res. 136. Democracy in this credit currently phases out. A third tax <18) H.R. 18. Uniform Poll Closing. Bill es­ China. Resolution commending Chinese stu­ credit proposed by the Senate to help the tablishing a uniform poll closing time of dents condemning the__ use of force by the working poor pay health insurance premi­ 9:00 p.m. EST in the continental United Chinese authorities against demonstrating ums for their children should be dropped States for presidential general elections. No. students, and supporting actions and sanc­ until Congress can deal more systematically Passed 238-154. tions of the president. Yes. Passed 406-0. with health care financing. <23) H.R. 1487. Fiscal Year 1990-91 State (81) S.J. Res. 113. FSX Fighter. Resolu­ Department Authorization. Amendment re­ tion prohibiting the export of technology, On the spending side of the ledger, the ducing total authorizations by $125 million defense articles, and defense services to co­ House conferees should abandon their pro­ in each of fiscal years 1990 and 1991. Yes. develop or coproduce the FSX aircraft with posal to distribute child care funds to the Passed 372-56. Japan. Yes. Passed 241-168. states automatically each year through the <24) H.R. 1487. Fiscal Year 1990-91 State (86) H.R. 2. Minimum Wage Increase. existing social services block grant. Instead Department Authorization. Passage of the Overriding President Bush's veto of the bill the House-Senate committee should adopt bill authorizing $4.68 billion in Fiscal Year to raise the mi.nimum wage from $3.35 to the rival proposal of a separate system of 1990 and $4.98 billion in Fiscal Year 1991. $4.55 over 3 years and allowing a 60-day child care grants to the states subject to the Yes. Passed 338-87. training wage for workers who have not annual appropriations process. The adminis­ <27> H.R. 1750. Contra Aid. Passage of the worked a total of 60 days. Yes. Failed 247- tration objects to the new spending pro­ bill providing $49.75 million in non-military 178. <% vote required) gram, but should perfer a program that aid to the Contras, $5 million for the admin­ <87> H.R. 1278. Savings and Loan Bailout. would have to compete for funds through istration of the Agency for International Amendment allowing the FDIC to give trou­ the appropriations process to one that Development, an unspecified amount for bled institutions credit for "goodwill" in de­ would not. States would use most of the transportation aid, and $4.2 million for med­ termining capital requirements. No. Failed ical aid to victims of the Nicaraguan war. money either to buy child care directly or 94-326. No. Passed 309-110. <89> H.R. 1278. Savings and Loan Bailout. give eligible families child care vouchers. To (28) H.R. 20. Hatch Act Reform. Bill re­ Amendment providing that savings and loan accommodate both the governors and con­ storing rights of federal civilian employees bailout costs would count in determining servative objecting to a strong federal pres­ to participate voluntarily, as private citi­ compliance with the Gramm-Rudman defi­ ence, the authorizing bill has been sensibly zens, in political activities. Yes. Passed 297- cit reduction law. Yes. Failed 171-256. eased so that it no longer provides for na­ 90. <92> H.R. 1278. Savings and Loan Bailout. tional child care standards. (37) H.R. 1149. Franking Privilege. Bill al­ Amendment prohibiting federally insured The final bill seems likely to authorize lowing Members of Congress to use the thrift institutions from investing in "junk franking privilege to disseminate copies of bonds." Yes. Passed. 303-114. parents to use vouchers to buy sectarian as the Constitution of the United States. No. (95) H.R. 1278. Savings and Loan Bailout. well as nonsectarian care. That strolls too Failed 174-231. Final passage of the bill. Yes. Passed 320-97. casually across the no-man's-land between (40) H. Con. Res. 106. Fiscal Year 1990 <109) H.R. 1594. Trade with Hungary. Ex­ church and state, and makes vouchers an in­ Budget Resolution. Amendment to reduce tension of most-favored-nation status for strument for canceling the Constitution. It defense spending in fiscal year 1990 by $35.4 five years to products of the People's Re­ ought to be killed, but we have no illusions million and raise $20.1 billion in additional public of Hungary. Yes. Failed 242-172. (% that either the president or either party in revenue for domestic spending by raising vote required) Congress will try to do so. The issue will go tax rates for individuals and corporations. (111) H. Res. 186. Flag Desecration. Reso­ to the courts. Someday those who have ac­ No. Failed 81-343. lution expressing "profound concern" over quired in this provision against their better (41} H. Con. Res. 106. Fiscal Year 1990 the Supreme Court's decision declaring flag judgment will regret the price they have Budget Resolution. Amendment providing burning to be constitutional. Yes. Passed paid. an additional $8.6 billion in deficit reduction 411-5. 29620 EXTENSIONS OF REMARKS November 16, 1989 019> H.R. 2655. Foreign Aid Authoriza­ <188) H.R. 2989. Fiscal Year 1990 Treas­ THE 1989 PARAGUAYAN ELEC­ tion. Amendment requiring random drug ury-Postal Appropriations. Passage of the TIONS: A FOUNDATION FOR testing of officers and employees of agencies bill appropriating $18.4 billion. Yes. Passed DEMOCRATIC CHANGE carrying out U.S. foreign aid programs. No. 376-26. Failed 204-212. <200> H.R. 3024. Debt-Limit Extension. 020> H.R. 2655. Foreign Aid Authoriza­ Passage of the bill providing a $70 billion in­ tion. Amendment requiring any government HON. GEO. W. CROCKETT, JR. crease in the statutory limit on the public OF MICHIGAN agency spending funds to influence the Feb­ debt. Yes. Passed 231-185. ruary 1990 Nicaraguan elections to report IN THE HOUSE OF REPRESENTATIVES such expenditures to the House Foreign Af­ (203) H.R. 2990. Fiscal Year 1990 Labor, fairs and Senate Foreign Relations Commit­ HHS and Education Appropriations. Pas­ Thursday, November 16, 1989 tees. Yes. Passed 299-118. sage of the bill appropriating $155.2 billion <129> H.R. 2655. Foreign Aid Authoriza­ Fiscal Year 90. Yes. Passed 365-58. Mr. CROCKETT. Mr. Speaker, last spring tion. Final passage of the bill authorizing <205> H.R. 3026. Fiscal Year 1990 District our colleague from Connecticut [BRUCE MOR­ $11.6 billion in both FY 1990 and FY 1991 of Columbia Appropriations. Amendment to RISON] cochaired a National Democratic Insti­ for foreign assistance programs. No. Passed prohibit spending, whether from Federal or tute observer mission to the May 1 Paraguay­ 314-101. local funds, by the District of Columbia for an elections. The institute has now released 030) H. Con. Res. 86. Mexico Debt Reduc­ abortions for any reason. No. Failed 206- its report on the mission. tion. Expressing the sense of Congress that 219. I wish to commend the gentleman from the president should use his influence to en­ <224) H.R. 1594. Trade with Hungary. Pas­ Connecticut for his leadership with respect to courage U.S. commercial banks to negotiate sage of the bill extending most-favored­ a reduction in Mexico's foreign debt. Yes. nation status for the People's Republic of Paraguay, and I include his foreword and the Passed 331-77. Hungary for 3 years. Yes. Passed 221-169. executive summary of the NDI report for the <134) H.R. 2788. Fiscal Year 1990 Interior (226) H.R. 2978. Flag Desecration. Passage _ information of the House: Appropriations. Amendment reducing fund­ of the bill prohibiting physical desecration FOREWORD ing for the National Endowment for the of the U.S. flag. Yes. Passed 380-38. Arts by $45,000 in reaction to a controver­ I was honored to act as co-chair of the Na­ sial photographic exhibit. No. Passed 332- (227> H.R. 982. Postal Reorganization. tional Democratic Institute observer team 94. Passage of the bill removing the U.S. Postal for the May 1 elections in Paraguay. It pre­ 035> H.R. 2788. Fiscal Year 1990 Interior Service from the Federal budget. Yes. sented an opportunity for all of the mem­ Appropriations. Passage of the bill provid­ Passed 405-11. bers of the team to share strong solidarity ing $11.06 billion. Yes. Passed 374-49. (237) H.R. 1659. Airport Security. Passage with the Paraguayan people as they em­ 037) H.R. 987. Tongass Forest Restric­ of the bill authorizing $270 million to im­ braced their long-awaited chance to move tions. Amendment weakening proposed re­ prove airport security. Yes. Passed 392-31. toward democratic rule. strictions on logging and other commercial <253> H.R. 3299. Fiscal Year 1990 Budget The elections were a special challenge to a exploitation of the Tongass National Forest Reconciliation. Amendment striking the 2- people who have never lived in a true de­ in Alaska. No. Failed 144-269. year capital gains tax cut and substituting mocracy, and whose leaders for too long 038> H.R. 987. Tongass Forest Restric­ restored deductibility for IRA's, a deficit-re­ seemed either unwilling or unable to bring tions. Passage of the bill authorizing the duction trust fund and an increase from them any closer to such a worthy goal. A Secretary of Agriculture to cancel two long­ 28% to 33% in the marginal tax rates for preliminary canvass of the results shows term pulp mill contracts for Tongass Na­ the highest incomes. Yes. Failed. 190-239. that Paraguayans have made real strides tional Forest, discontinue mandated sales <258) H.R. 3275. Steel Quota Enforcement. since the February 3 coup, which overthrew goals, and establish 23 new wilderness areas the decades-old dictatorship of Gen. Alfredo in the Tongass National Forest. Yes. Passed Passage of the bill authorizing the Presi­ dent to continue negotiating and enforcing Stroessner. 356-60. Democracy in Paraguay, and the sorry 041) H.R. 2883. Fiscal Year 1990 Agricul­ voluntary international agreements limiting steel imports into the U.S. through March record of human rights violations under ture Appropriations. Appropriating $37.9 Stroessner, have long been a special interest billion plus $4.1 billion in customs transfers 31, 1992. Yes. Passed 354-10. to me. I first visited Asuci6n right after the for Agriculture programs in Fiscal Year (267) H.R. 3299. Fiscal Year 1990 Budget coup in February. This led me to join the 1990. Yes. Passed 394-26. Reconciliation. Amendment effectively re­ international observer delegation to witness 045) H.R. 1056. Solid Waste Disposal. pealing the 1988 Medicare Catastrophic the May election. For me, there have been Passage of the bill ensuring that federal fa­ Coverage Act. Yes. Passed 360-66. few more poignant, more impressive scenes cilities must comply with Resource Conser­ <270> H.R. 3385. Nicaraguan Election Aid. than watching a nation once in the clutches vation and Recovery Act regulations govern­ Passage of the bill providing $9 million for of a brutal regime march self-confidently ing the cleanup of hazardous waste sites. U.S. support of the February 25, 1990 Nica­ toward representative government. Today, I Yes. Passed 380-39. raguan elections and subsidizing the major remain impressed and moved by what I saw. 050) H.R. 2939. Fiscal Year 1990 Foreign opposition to the Sandinista Government. This report highlights the weaknesses, as Operations Appropriations. Passage of the No. Passed 263-156. well as the strengths, of Paraguay's transi­ bill appropriating $14.3 billion for foreign <272) H.R. 3299. Fiscal Year 1990 Budget development, military and economic aid pro­ tion to democracy. Yet I believe I can speak grams, and export-promotion programs. Reconciliation. Amendment striking child­ for the delegation as a whole when I say Yes. Passed 329-69. care provisions and replacing them with ex­ that each of us returned from Paraguay 053> H.R. 2461. Fiscal Year 1990-1991 De­ pansion of the earned income tax credit and with a new sense of optimism about what is fense Department Authorization. Amend­ a new tax credit for working-poor families underway there. We were especially touched ment decreasing the authorization for the with children under age 5. No. Failed 140- by the countless examples of Paraguayan strategic defense initiative from $4.1 billion 285. youth, whatever, their party, working to­ to $3.1 billion. Yes. Passed 358-175. <287) H.R. 1495. Arms Control Authoriza­ gether to affirm a common dream of their 068) H.R. 2461. Fiscal Year 1990-1991 De­ tion. Passage of the bill authorizing $35.9 nation's future. fense Department Authorization. Amend­ million in fiscal year 1990 and $37.3 million I want to thank my co-chairmen-Eduardo ment reducing the amount authorized for in fiscal year 1991. Yes. Passed 400-11. Frei of Chile and Alisidair Graham of spending on the B-2 "Stealth" bomber. Yes. <293 > H.R. 2494. International Develop­ Canada-for their prodigious contributions Passed 257-160. ment and Finance. Passage of the bill au­ of grace, wit, and hard work in Paraguay. <170) H.R. 2461. Fiscal Year 1990-1991 De­ thorizing U.S. contributions to the Inter­ Their efforts, and those of the other mem­ fense Department Authorization. Amend­ American Development Bank and a special bers of the delegation, succeeded in making ment terminating the Midgetman missile the international observer delegation a huge International Monetary Fund program, and success. I also want to thank U.S. Ambassa­ program. No. Rejected 168-254. reauthorizing the Export-Import Bank's <185> H.R. 2461. Fiscal Year 1990-1991 De­ dor Timothy Towell and his able staff at fense Department Authorization. Passage of "war chest" aimed at unfair export-promo­ the U.S. Embassy for their help in gaining the bill authorizing $305.4 billion in defense­ tion activities of other countries. Yes. access to Paraguayan government repre­ related appropriations. Yes. Passed 261-162. Passed 280-125. sentatives and in making my visit to Para­ <187) H.R. 2989. Fiscal Year 1990 Treas­ <295> H.R. 3402. Aid to Poland and Hunga­ guay both pleasant and productive. And, ury-Postal Appropriations. Amendment to ry. Passage of the bill authorizing $837.5 lastly I want to thank the National Demo­ delete $16.2 million in funding for five ear­ million in U.S. aid programs to Poland and cratic Institute for International Affairs, marked university science projects. Yes. Hungary during fiscal years 1990-1992. Yes. whose efforts in Paraguay before, during, Failed 114-293. Passed 345-47. and after the elections will likely serve as a November 16, 1989 EXTENSIONS OF REMARKS 29621 model of effective democratic solidarity for COUNT ALL PERSONS IN THE Therefore, I am pleased to provide for the years to come. 1990 CENSUS RECORD a profile of Dr. Packard which recent­ ly appeared in the Baylor Line. EXECUTIVE SUMMARY A 19-member international delegation, or­ HON. JOHN BRYANT FACULTY PROFILE: DR. ROBERT PACKARD ganized by the National Democratic Insti­ OF TEXAS tute for International Affairs, observed the IN THE HOUSE OF REPRESENTATIVES When research labs want to study a ballis­ May 1 presidential and legislative elections tocardiographic heart, they use a model de­ in Paraguay. The elections were held only Thursday, November 16, 1989 three months after Paraguay's long-reigning veloped by Packard. dictator, General Alfredo Stroessner, had Mr. BRYANT. Mr. Speaker, today the House In the turbulent '60s, only two Baylor pro­ been deposed in a bloody coup. Further, the will consider yet another proposal to direct the fessors were touted in various underground elections occurred in a country that lacks a Census Bureau to exclude undocumented college manuals: David McHam in journal­ democratic tradition and that experienced residents from the census counts used for re­ ism and Bob Packard in physics. When the considerable repression during the rowdy Taurus social club wanted a sponsor, apportionment and calculation of certain Fed­ they asked for Packard. When Circle K Stroessner era. eral funds provided to the States on the basis The following are the delegation's summa­ needed a sponsor, they wanted Packard too. ry conclusions concerning certain aspects of of population. And when Kappa Omega Tau was formed­ the elections process: The 1990 census will mark the 200th anni­ Packard was their first choice as well. 1. Despite irregularities and instances of versary of the count. The Government has Dr. Packard's main two classes, physics outright fraud in the balloting process, counted undocumented residents in every de­ for liberal arts majors and physics for pre­ Paraguayans from across the political spec­ cennial census since the first count in 1790. med majors, are traditionally among the trum acknowledged that the May 1 elections This practice is grounded in the apportionment most popular in the Baylor catalogue. Stu­ marked a significant step forward in the clause of the Constitution which requires an dents simply want to be in the auditorium effort to establish democratic government. when he teaches. enumeration of "the whole number of per­ Why? The victories of General Andres Rodriguez sons." and the Colorado Party, in the presidential Because things happen in Packard's class­ and legislative contests, repsectively, also I believe it would be unconstitutional not to es. Professors are set on fire. Eggs are flung were accepted by Paraguayans as represent­ count undocumented residents. The Justice into auditoriums or dropped from ladders. ing the will of the people. Department has advised Congress and taken Newspapers are used to create sturdy soap 2. Scheduling the elections 90 days after the position in court that any legislative at­ boxes. Yet what separates Packard from a the coup provided a tremendous advantage tempt to exclude undocumented residents host of entertaining professors who simply to the Colorado Party, which dominated the from the census count is unconstitutional. Last make class fun is that Packard makes phys­ government during the Stroessner era, and month, the Secretary of Commerce advised ics important to students. His office is dominated by neat stacks of proved particularly disadvantageous to Congress that he would have recommended a those parties that were officially recognized science magazines, both popular and schol­ only after the coup. The participation of all veto of the Commerce, Justice, State appro­ arly. He's a compulsive clipper and has sev­ parties in the elections, nonetheless, ex­ priations bill had it included language to ex­ eral file cabinets full of carefully cross-ref­ posed the population to varied personalities clude undocumented residents from the erenced current topics. Inhalant abuse. and perspectives, and considerably expand­ census. House Members have twice defeated Football knee injuries. How a curve ball ed the range of options available to voters. attempts to include this language on another works. How a jam box works. How the sun 3. The election campaign was marked by a appropriations bill. works. Each semester he draws on his degree of openness that had not been previ­ Instructions to exclude undocumented resi­ almost inexhaustible supply of applicable ously experienced in Paraguay. Political dents from the 1990 census will disrupt the topics to justify the students' time and his parties held rallies throughout the country, interest in physics. media operated without constraints and entire census-taking process scheduled to Everything, after all, he says, has some­ human rights abuses decreased dramatical­ begin on April 1, 1990. Any attempt to count, thing to do with physics-the science that ly. then exclude, undocumented residents from deals with matter and energy and their 4. The election law and procedures reflect the 1990 census will jeopardize the census in interactions in the fields of mechanics, the interests of a system favoring one domi­ every community in the United States. Such acoustics, optics, heat, electricity, magnes­ nant political party; they restrict, rather an effort will also jeopardize outreach cam­ tism, radiation, atomic structure, and nucle­ than promote political competition. The paigns targeted at such historically under­ ar phenomena. Stuff like that. conduct of the campaign and the elections counted groups as African-Americans, Hispan­ Bob Packard was born in Regina, New highlighted the need for significant reforms Mexico, but grew up in Temple, Texas, the in the election process and for effective civic ics, and low-income persons. In my home son of an engineer for the Santa Fe Rail­ education programs. These reforms have State of Texas, an undercount of Texas' mi­ road. During World War II he was assigned been promised by Colorado Party officials, nority populations alone in the 1980 census to the Combat Engineers, the Signal Corps, including the newly-elected president. deprived our State of an estimated $30 million Intelligence, and finally to the Army of Oc­ The long-term significance of the May 1 a year in allocations based on population. cupation in Japan. He returned stateside elections will depend, in large measure, on It is in the best interests of the Nation that and in short order earned his bachelor's, the degree to which the reforms take into any attempt to exclude undocumented resi­ master's, and doctorate-all in physics­ account and reflect the interests of an sec­ dents from the 1990 census count be defeat­ from the University of Texas of support to state and local governments while achieving between $160 billion and electricity in the 70 developing countries that grow sugar, using sugar cane wastes as adopting the rating system, and direct pri­ $200 billion per year in energy savings mary and secondary federal lending institu­ through continued investment in efficiency the renewable fuel source. A more recent study that included paper and pulp and ag­ tions to loan for energy-saving improve­ technologies that are two to five times ments as standard operating procedure-$20 cheaper than conventional fossil or nuclear riculture wastes finds a current global market potential exceeding 250,000 MW. million for 3-year authorization; resource options. Establish efficiency standards for incan­ However, a variety of market imperfec­ The U.S. annually mines upwards of one billion tons of coal, and coal produces over descent and fluorescent lamps, and labels on tions and institutional barriers currently in­ efficiency of windows and window systems; hibit the timely capture of these low-cost half of U.S. electricity. This legislation pro­ motes research to reduce or offset C02 emis­ R&D initiative to reduce energy and strat­ energy options. In particular, public policy­ ospheric ozone depleting chemicals-a mini­ making has failed to keep pace with these sions from coal. In particular, the bill pro­ motes urban and rural tree-planting, which mum of $30 million for 3-year authorization; technological innovations and new commer­ Expand DOE's Least-Cost Electric Utility cial opportunities, nor have any public research shows to be one of the least-cost means of offsetting carbon emissions. The Planning Initiative-a minimum of $30 mil­ policy efforts been made to deal with the lion for 3-year authorization, and imple­ threat of global warming. The proposed leg­ bill builds upon the "Global Releaf" pro­ gram developed by the American Forestry ment a Least-Cost Gas Utility Planning Ini­ islation sets out new, needed changes in fed­ tiative-a minimum of $15 million for 3-year eral policies that reduce a number of the Association, which has identified opportuni­ key market barriers. ties for planting over 150 million trees in authorization; Efficiency is not a panacea to the global urban communities. The trees are estimated [Note: Efficiency investments could cut in warming problem, but represents the most to save consumers $4 billion per year by re­ half the nation's $170 billion per year gas important first step this and other nations ducing the "summer heat island" effect and and electricity bill for buildings, but current can take in reducing greenhouse gases in a the need for as much air conditioning. utility regulations make it unlikely that cost-minimizing manner, while at the same Key features of the bill include: most of these savings will be captured­ time spurring economic productivity. NATIONAL GOALS these least-cost initiatives are designed to overcome these barriers with innovative The energy savings-cumulatively 20% reduction of 1988 C02 emissions amounting to trillions of dollars per decade changes in regulations.] levels by 2000; Requires Dept. of Transportation to worldwide-may offer one of the few Inti Global Agreement on the Atmosphere sources of investment capital for undertak­ review and report on Least-Cost Transporta­ by 1992 setting a global goal of 20% reduc­ tion options, including mass transport op­ ing additional steps to control greenhouse tion of 1988 C02 levels by 2000; emissions. Periodic review of need for and the oppor­ tions, integration of transportation and Other vital steps that need to be taken tunity to achieve further reductions beyond land-use planning, and expansion of urban and that are addressed in this legislation in: walkways and bikeways; 2000. Directs Federal Energy Regulatory Com­ elude: rapid development of ecologically ~us­ TITLE I-NATIONAL LEAST-COST ENERGY PLAN tainable renewable energy resources; pre­ mission to pursue rigorous Least-cost utility vention of deforestation and promotion of Changes the National Energy Policy Plan planning in interstate power sales; reforestation, afforestation, and agrofor­ ; ing the nation's renewable energy R&D pro­ A 2-year Action Plan to meet the goals of the Least-Cost Plan. Provides 3-year authorization for LIWP of gram, which has been reduced 75% over the $1 billion-$250 million in FY91, $350 in past decade. According to DOE's Energy Re­ TITLE II-ENERGY EFFICIENCY FY92, and $400 million in FY93 the U.S. re­ 3-year R&D authorization of a minimum to $161.4 million in FY89). serves of renewable energy resources ex­ of $868 million-$222 million in FY91, $296 ceeds 80,000 quads-five to 10 times larger million in FY92, and $350 million in FY93 TITLE IV-VEHICLE ENERGY EFFICIENCY than U.S. coal reserves. ERAB estimates ; Establishes new national vehicle energy ed from this resource base ; the Agriculture Productivity Research Pro­ Adopt a binding multilateral agreement Requires DOE to prepare report detailing gram, designed to help farms fix nitrogen requiring reductions of not less than 30% in long-term RD&D program and policy op­ and carbon and reduce dependence on fossil emissions of oxides of nitrogen over 1987 tions to achieve a doubling, tripling, and fuel inputs-($20 million for each of FY91 levels by 1998; quadrupling of national renewable energy to FY95, compared to $3.9 in FY89); Adoption of additional control measures use by 2015; 3-year authorization of $39 million for de­ requiring the virtual elimination of CFC [Note: DOE studies note that renewable velopment of an Integrated Farming RD&D production identified in the Montreal proto­ resources constitute one of America's larg­ program designed to promote ecologically col within five to seven years of enactment sustainable production of cost-effective re­ of this Act; est energy reserves-over 80,000 quads per To convene an international meeting in year, over five times America's coal re­ newable fuels and other multiple economic outputs ($13 million for each of FY91 to the U.S. to encourage the exchange of infor­ serves-and that 80 quads (or 80% of pro­ mation on energy efficiency and solar and jected energy needs in 2010) could be eco­ FY93>; Mandates a comprehensive report on renewable energy resources that are ecologi­ nomically extracted within 25 years by cally sustainable. maintaining an adequate and stable funded RD&D necessary to establish a National Farm Ethanol Program, and analysis of in­ TITLE XI-WORLD POPULATION GROWTH R&D effort. R&D has been cut 75 percent centives necessary to stimulate production over the past 8 years, and this bill gets the of ethanol feedstocks; 5-year authorization for family planning needed R&D back on track.] Establishes an urban tree planting pro­ services of $2.78 billion and at least $300 3-year authorization for district cooling gram designed to reduce the "summer heat million available for the United Nations demonstration ($3 million), and for research island" effect in communities, leading to re­ Population Fund-<$500 million in FY91, on integrating renewables with fuel cells duced energy costs and carbon-dioxide emis­ $540 million in FY92, and $580 million for ($15 million); sions-($100 million authorization); each of FY93 to FY95, compared to $242 3-year authorization to continue efforts of Expansion of the Conservation Reserve million in FY89 for international family the Committee on Renewable Energy, Com­ Program to 65 million acres; planning services); merce, and Trade to promote [Note: Studies show that farmers could si­ Initiate an international conference on export of renewable technologies ($6.2 mil­ multaneously reduce soil erosion and diver­ population to examine policies necessary to lion>; sify their production by growing tree crops achieve sustainable world population levels, Demonstration of biomass-gasified steam­ that can be used as biomass fuels-the CRP and advance the scientific understanding of injected gas turbines ; implement national least-cost energy plans; development of new markets for recycled 3-year authorization for research on pre­ Establishes Least-Cost Transportation nondegradable materials; venting, reducing, recycling, or offsetting Policies to guide aid and loans to recipient Ban production or sale of certain designat­ C02 emissions from coal combustion. countries; ed nonrecyclable consumer goods. November 16, 1989 EXTENSIONS OF REMARKS 29625 INTRODUCTION OF COMPETI­ retail electricity or enjoy market power. With­ million in loan commitments by the city's TIVE WHOLESALE ELECTRIC out these benefits, an independent power pro­ banks, insurance companies and other fi­ GENERATION ACT ducer has greater difficulty arranging proper fi­ nancial institutions. nancing under PUHCA, and the maximum The $6.6 million is the "minimum need ... to make an effective impact on HON. THOMAS J. BLILEY, JR. benefit of cor:1petition fails to be realized. Springfield," according to John Andrew OF VIRGINIA Today, I am pleased to introduce the Gallery of Urban Partners, a consulting IN THE HOUSE OF REPRESENTATIVES PUHCA Reform Act of 1989 with my friend, firm that devised the "Springfield Historic the gentleman from Louisiana [Mr. TAUZIN]. Thursday, November 16, 1989 District Revitalization Strategy." This legislation will be a surgical strike on The firm was hired by the National Trust Mr. BULEY. Mr. Speaker, as we look to the PUHCA that will allow for the law to properly for Historic Preservation, which received a next decade, we face deepening doubts about differentiate between utility holding companies $50,000 grant to study the neighborhood how America can meet its still growing needs and the new breed of truly independent power from the Jessie Ball duPont Religious, for more economical electricity. Demand for producers. I believe that this legislation will Charitable and Educational Fund. In something of a revival-meeting atmos­ electricity continues to increase, and the sur­ retain the much needed protection to the rate­ pluses in generating capacity that arose phere during a luncheon in the Seminole payer of PUHCA while allowing this Nation's Club, business and political leaders of Jack­ during the 1970's and early 1980's are being electricity generation to enter the 21st centu­ sonville as well as leaders of Springfield steadily absorbed. ry. neighborhood organizations pledged their Studies by the U.S. Department of Energy This legislation establishes a level playing support of the plan. have forecast that, if demand grows by just 2 field with proper safeguards so that reliable Mayor Tommy Hazouri, who has been at percent annually, the United States will need competition can occur. This type of competi­ odds with some neighborhood activists for about 100 gigawatts of additional electric gen­ tion will be a real benefit to the ratepayer demolishing alleged "crack houses" in erating capacity by the year 2000. This repre­ today by supplying the most efficient, · least Springfield that some felt should be pre­ sents the equivalent of between 500 and served and rehabilitated, praised the plan cost electricity. Also, society as a whole will and said, "You have the commitment from 1,000 powerplants of the size likely to be built benefit by unleashing the creativity and inno­ in the coming years and an increase of one­ the mayor to make it happen. I'd like to vation of the market to tackle the technologi­ publicly state today that I envision a sixth of existing capacity beyond that currently cal and environmental challenges facing this Springfield returning back to the future." under construction. Nation's future energy needs. A major element of the strategy is to The Energy Department recognizes that Of course, I want to thank my colleague avoid the "gentrification" controversy that these estimates may be conservative, sug­ from Louisiana, Mr. TAUZIN, for his fine work has erupted in other cities when upper­ gesting in a 1988 analysis that, with a modest­ on the issue. I also want to thank the chair­ income families returned to the inner city to ly higher growth demand, "it is likely that man of the Subcommittee on Energy and restore old homes and drove out low-income every region will need new generating capac­ residents. Power, Mr. SHARP, for his leadership in bring­ The Springfield strategy goes into great ity by the early 1990s." In fact, the Wall Street ing the concepts incorporated in the legisla­ Journal recently reported that because of pos­ detail to continue rehabilitation of the tion to the forefront of our national energy neighborhood's attractive old homes while sible power shortages, "New England, New policy debate. Finally, I want to thank the providing better, affordable housing for the York's Long Island, and possibly the Middle chairman of the Committee on Energy and large proportion of low-income people living Atlantic States all face brownouts and black­ Commerce, Mr. DINGELL, for showing real there. outs this summer." The report noted that utili­ openness and willingness to discuss these The mile-square Springfield Historic Dis­ ty analysts are also forecasting that by 1992, concepts. I look forward to working with all my trict is believed to have the largest concen­ or maybe sooner, the entire east coast, much colleagues toward successful passage of the tration of historic residences in Florida. J. Jackson Walter, president of the Na­ of the Midwest and the Pacific Northwest will PUHCA Reform Act of 1989. be "equally hard-pressed to keep the lights tional Trust, said the revitalization strategy burning brightly." "can provide a national model for affordable SPRINGFIELD REVIVAL housing, as there is an economic, racial and Conservation measures must play an impor­ social diversity among [Springfield's] resi­ tant and significant role in meeting this chal­ dents. . . . The area is a microcosm of the lenge; nonetheless, capacity additions will be HON.CHARLESE.BENNETT problems and assets in so many of our na­ needed. The form, availability, cost, and safety OF FLORIDA tion's cities." of these capacity additions will also shape the IN THE HOUSE OF REPRESENTATIVES Like the recently published final report of types of response we, as a nation, make to the Mayor's Commission on Housing, the Thursday, November 16, 1989 the impending shortages of electricity sup­ Springfield plan emphasizes the need to up­ plies. Mr. BENNETI. Mr. Speaker, a recent edito­ grade the quality of existing, substandard Our experience in Virginia has shown that rial in my hometown newspaper, Florida housing in order for Jacksonville to realisti­ cally provide affordable housing for low­ nonutility generation can provide a valuable Times-Union, heralded a recently-unveiled plan to restore the Springfield area in my con­ income families. role in the supply of much needed capacity. Douglas J. Milne, an attorney who headed The enactment of the Public Utility Regulatory gressional district. I have been associated a local committee assisting the National Policies Act [PURPA] initiated a competitive with this along with my long-time friend, Doug Trust in devising the Springfield plan, said, market for generating electricity and for ex­ Milne, who was mentioned in the article. The "If we are to see decent, safe housing condi­ panding the options available to utility compa­ credit goes to Doug, the National Trust for tions for the poor, the most basic consider­ nies. The result of this competition has been Historical Preservation, and everyone who has ation must be how to hold down costs. We reliable, efficient electricity generation. worked so hard to preserve this historic area. must begin with the existing housing However, as this form of generation ma­ I am glad to have been associated with this stock-obviously it should cost less to im­ prove than to build from point zero." tures, we have come to realize that there are effort, which is far from complete. I submit fof the CONGRESSIONAL RECORD the editorial enti­ But the plan also goes into great detail real barriers to further development. A signifi­ proposing a mixture of public and private cant impediment to utilities acquiring the tled "Speedup of Springfield revival goes from programs to reduce the demolition rate of lowest cost reliable capacity through the inde­ possible to probable." homes that can be saved, overcome financ­ pendent power market is the Public Utility SPEEDUP OF SPRINGFIELD REVIVAL GOES FROM ing obstacles of families seeking loans for Holding Company Act [PUHCA]. POSSIBLE TO PROBABLE homes that they want to rehabilitate them­ PUHCA has been a very effective piece of The most detailed plan ever developed selves, and to "infill" the large number of legislation in dealing with the abuses by utility during approximately 15 years of efforts to vacant lots in Springfield with brand-new holding companies that were evident when revive the historic Springfield neighborhood housing that has the attractive architectur­ near downtown Jacksonville was unveiled al "flavor" of existing homes. the law was passed in 1935. I believe it has yesterday. Despite a multitude of obstacles, Spring­ served the ratepayer and the investor very Called "ambitious but feasible," the five­ field has been "coming back" slowly but no­ well; however, it was impossible for the law­ year plan calls for $6.6 million of public and ticeably in recent years. The National Trust makers of the time to envision the recreation private spending in the neighborhood offers a blueprint for speeding the process of independent power producers that do not during the next two years-including $3.5 substantially. The blueprint can become re- 29626 EXTENSIONS OF REMARKS November 16, 1989 ality if business and political interests so eign cost of capital-the after-tax return a sell it and send their child to college. But, be­ decree. company pays its lenders-is much less than cause the gain will be taxed at ordinary rates what U.S. firms pay. This makes it less com­ and there isn't an adjustment for inflation, they THE BATTLE ON CAPITAL GAINS petitive and less costly for foreign companies face the prospect of losing a third or more of to finance large deals. It is also exactly why their profit. HON. DONALD E. "BUZZ" LUKENS the Japanese have recently acquired Colum­ Consider the businesswoman who bought a bia Pictures and the Rockefeller Center. OF OHIO small retail store, made it into a successful IN THE HOUSE OF REPRESENTATIVES A TAX CUT THAT WOULD RAISE REVENUE business, and now wants to sell it and enjoy This cut in capital gains would, indeed, raise Thursday, November 16, 1989 the fruits of her labor. This used to be called revenue and spur on economic growth. Fol­ an American success story. But can she Mr. DONALD E. "BUZ" LUKENS. Mr. lowing the rate cuts of 1978 and 1981, reve­ afford to sell the business since capital gains Speaker, the battle on capital gains is tempo­ nues soared from $9.1 billion to their pretax rates and inflation have increased. rarily on hold, but the war is far from over. Our reform level of $24.5 billion in 1985. By con­ Finally, consider the farmer who wants to pretax friends in the other body have refused trast, from 1969 to 1973 the rate was raised sell some of his acreage and make it available to heed the will of the American people and from 28 to 49 percent, and the real revenues for other uses. Its value has greatly appreciat­ have killed this proposal that would continue by 1976 were 37 percent lower than in 1969. ed since he took over the family farm from his economic growth and help the middle-income The reason is simple: Making the capital gains dad, but a 33 percent capital gains tax and no taxpayer. tax less punitive will cause many taxpayers­ A decrease in the capital gains tax is not a adjustments for inflation make it hard to justi­ who would elect to hold their assets at a high fy. tax break for wealthy Americans. In 1987, rate-to sell at least some assets and pay tax one-third of all tax returns reporting long-term on the profits. capital gains had adjusted gross incomes­ A recent study by the National Center for other than the capital gain-of less than Policy Analysis shows that the House-passed $20,000 and 70 percent had incomes less 2-year rate cut to 19.6 percent, plus inflation­ than $50,000. indexing of gains thereafter would: Mr. Speaker, the elderly, the small farmer, GLOBAL WARMING-SENSIBLE Increase Federal revenues $61 billion over POLICIES FOR THE FUTURE the small businessman, and middle-income 10 years. Americans are the most hurt by the Senate Increase GNP by $40 billion over 10 years. refusal to lower the capital gains rate. In fact, Create 400,000 new jobs by 1992 and HON. VIC FAZIO seniors make up 26 percent of all tax returns 750,000 by 1995. OF CALIFORNIA reporting capital gains while representing only Indexing capital gains to inflation, just as IN THE HOUSE OF REPRESENTATIVES 11 percent of all tax returns. It is a crime to income tax is now indexed, is long overdue Thursday, November 16, 1989 continue to take money out of the pockets of and is more valuable than a permanent cut this Nation's elderly to finance this country's which would raise $31 billion over 10 years. Mr. FAZIO. Mr. Speaker, global warming is budget deficit. By taxing gains not indexed for inflation, the beginning to occur as a result of man's re­ I commend my colleagues for listening to system imposes an even higher tax on real lease of carbon dioxide and other greenhouse the will of the voters when the House passed gains, and sometimes even on real losses gases into the atmosphere. Predicting the the capital gains cut in Sept~mber. I would that inflation disguises as gains. exact rate of global warming and the exact cli­ urge our colleagues in the other body to MYTHS ABOUT CAPITAL GAINS matic effects is a difficult art and more re­ reduce this tax so that we help middle Ameri­ search is certainly necessary. However, scien­ cans realize the American dream. You may ask: Why do I hear that it would be a break for the rich and 80 percent of cap­ tists have reached a general consensus that Liberals have been saying that a cut in cap­ global warming is indeed real and that the ital gains is a tax break that only benefits the ital gains are realized by people who earn over $100,000 annually? The reality is a per­ consequences will have major impacts on rich, because, they say 80 percent of capital human civilization. gains reported by individuals earning over son's capital gain is included in their income $100,000 annually. Both of these statements for the year they realize the gain; thus, they Most scientific models of global warming are wrong. The fact of the matter is the cur­ are included in a much higher income bracket predict that average temperatures will rise a rent tax on capital gains is hurting retirees, when their real annual income may only be few degrees centigrade by the 21st century. small businessowners, farmers, middle- and $20,000. In fact, in 1987, one-third of tax re­ An average temperature rise of a few degrees lower-income workers, and most of all, our turns reporting long-term capital gains had ad­ may not seem like much. During the last ice Nation's competitiveness in the world market. justed gross income-other than their gain­ age, however, the world's average tempera­ A cut in the capital gains tax rate will strength­ less than $20,000; and 70 percent had in­ ture was only a few degrees colder than en businesses and our economy, improve comes less than $50,000. today. This small temperature difference competitiveness, raise revenue to offset the THE ELDERLY AND MIDDLE CLASS BENEFIT MOST caused much of North America to be covered budget deficit, and benefit middle-income The elderly-age 65 and over-especially by vast sheets of ice kilometers thick. Like­ Americans more than anyone else. benefit from a capital gains tax cut because wise, the consequences of even a modest rise of a few degrees in average temperature HIGH CAPITAL COSTS IN UNITED STATES HELP most realize capital gains more than once in JAPANESE BUY AMERICA their later years. In fact, 36 percent of the el­ are profound. Experts agree that a major reason U.S. derly reported capital gains in at least 4 of 5 Agriculture will be profoundly affected. Far companies have trouble competing in the years during the 1979-83 5-year period. I'll northern areas such as Canada and the global marketplace is because our Govern­ bet you didn't realize that the elderly make up Soviet Union may benefit from longer growing ment taxes long-term capital gains at a higher 26 percent of all tax returns reporting capital seasons and greater rainfall. Most other areas rate than nearly all of our European and Asian gains while representing only 11 percent of all including the United States will suffer in­ competitors. For example, the United Kingdom tax returns. creased drought and substantially decreased indexes capital asset basis to inflation; the What this means is Grandpa and Grandma crop production. Water supplies depend on French rate is 16 percent; Japan taxes securi­ decide to use the proceeds from their lifelong the quantity and timing of local precipitation. ties at 5 percent; and West Germany, Italy, investments to either enjoy their retirement or Many areas, including the Western United Belgium, Taiwan, Hong Kong, South Korea, just to pay for increased living expenses. I States will suffer droughts unprecedented in and Singapore don't tax long-term capital really believe it is a crime to take away a large severity and duration. Sea level will rise slowly gains at all. portion of the hard-earned investments of at the rate of a couple of inches per decade. By making capital gains more attractive, those who no longer earn income. However, vast numbers of people live in Americans would invest in venture capital It is also unfair to many other Americans. coastal areas which will be profoundly affect­ companies whose major investors are now Consider the middle-class family who carefully ed by even small rises in sea levels. Many foreigners paying, as you can see, very little invested in stock or a small piece of real areas will be permanently flooded and the or no tax on capital gains. In other words, for- estate several years ago. They now want to damage from hurricanes and other storms will November 16, 1989 EXTENSIONS OF REMARKS 29627 far exceed the devastation caused recently by HONORING RONALD W. DOWNEY for this amount; the administrative law judge Hurricane Hugo. [ALJ] deciding the case must review the fee The Bush administration has finally begun HON. ROBERT S. WALKER petition, and if the amount is under $3,000 the to comprehend the reality and significance of OF PENNSYLVANIA ALJ may award the fee at that point. If the global warming. Last week the United States IN THE HOUSE OF REPRESENTATIVES amount of the fee is over $3,000 the petition signed the Noordwijk Declaration on Atmos­ must be sent to the regional ALJ office for Thursday, November 16, 1989 pheric Pollution and Climatic Change. In doing review. so, the United States has joined with nearly all Mr. WALKER. Mr. Speaker, on December The current procedure has in too many in­ of the other industrialized nations in the world 30, 1989, Mr. Ronald W. Downey will retire as stances resulted in lengthy delays, uncertain­ in agreeing to work toward stabilizing the an Army Reserve Technician after 33 years of ty, and arbitrary fee awards. The effect has emissions of carbon dioxide and other green­ service. Mr. Downey, a combat veteran of the been to discourage some attorneys from rep­ house gases as soon as possible and to in­ Marine Corps during the Korean war, has had resenting Social Security claimants. The legis­ a profound impact on the readiness of the crease study of ways to reduce emissions in lation we are introducing today recognizes · U.S. Army Reserve while performing his duties the future. Other important aspects of this that a contingency fee system, with appropri­ as a member of the full-time civilian support declaration include recognition of the impor­ ate protections for claimants, is a fair and re­ staff. sponsible method for setting attorney fees. It tance of greater energy conservation and effi­ As the supervisory staff assistant to the ciency and recognition that developing coun­ will enhance the ability of claimants, who are 378th Supply and Service Battalion at Fort In­ often people with limited resources, to secure tries will need financial and technical assist­ diantown Gap, PA, since 1968, Mr. Downey ance from the industrialized nations to do their effective representation without being forced served as the principal adviser to nine battal­ to pay significant out-of-pocket expenses part to stabilize C~ emissions. ion commanders. He represented these com­ before the resolution of their claims. Now that we have accepted these meritori­ manders on a day-to-day basis concerning the The Social Security Claimants Representa­ ous goals, the administration must take steps operation of the battalion headquarters and tion Act of 1989 will eliminate the fee petition to make significant policy changes that will re­ four subordinate companies throughout cen­ process for most cases, and establish in its flect our commitment to these goals. In par­ tral and eastern Pennsylvania. place an automatic fee payment procedure ticular, it is imperative that the Department of Mr. Downey has provided to the Army Re­ under which the attorney will automatically be Energy assume a leadership role in reaching serve a career of consistency and excellence. paid 25 percent of the back award due to these goals. These goals must be incorporat­ He has been a tireless performer of his duties, claimant, up to a cap of $4,000, indexed to ed into the Department's plans to develop a being responsible for maintaining the battalion the Social Security COLA. This amount will be national energy strategy. The Department is at the highest possible levels of combat readi­ ness. His technical expertise will be well nigh paid by the SSA at the time the back award is holding hearings throughout the country on its paid to the beneficiary, if no challenge to the proposed energy strategy, but we have seen impossible to replace, and his sense of patri­ otism is of the highest caliber. This Nation is size of the fee is filed by the claimant, the at­ no evidence to date that the Department in­ torney, or by the ALJ or other decision maker tends to incorporate any meaningful con­ forever indebted to Mr. Ronald W. Downey for his many years of dedicated service. in the case. straints on C~ and other greenhouse gases. The payment would be made in the form of Environmentally sound practices must be in­ a two-party check payable to the attorney and corporated into the plan. SOCIAL SECURITY CLAIMANTS the claimant for the full amount of the back In addition, it is clear the Department's re­ REPRESENTATION ACT OF 1989 award, accompanied by a notice from the SSA search and development budget must be setting forth the amount due the attorney and changed to reflect these international goals. HON. SANDER M. LEVIN the claimant and an affidavit as to the proper The Department must launch a comprehen­ OF MICHIGAN division of the back award to be sworn to by sive program into ways not only to stabilize IN THE HOUSE OF REPRESENTATIVES the attorney and the claimant and returned to emissions but to develop technologies to Thursday, November 16, 1989 the SSA. reduce such emissions. The United States is The attorney may waive the fee altogether, by far the largest emitter of C~ and other Mr. LEVIN of Michigan. Mr. Speaker, today in which case the claimant would receive the greenhouse gases and we must assume a my colleagues on the Social Security Subcom­ full back award check. The attorney may also leadership role in stabilizing and reducing mittee and I are introducing the Social Securi­ arrange with the claimant to receive less than these emissions. ty Claimants Representation Act of 1989. This the amount the automatic process would pro­ legislation will establish a responsible and fair vide. Payment of benefits is to begin within 60 The national energy policy must move us method for ensuring that Social Security days of the determination decisions. from a policy dominated by the use of fossil claimants have effective representation as The decisionmaker in the case, usually the fuels to one that promotes the use of renew­ they pursue their rights under the Social Secu­ ALJ, must provide the claimant and the attor­ able energy resources and focuses on in­ rity Act. Chairman JACOBS, Mr. ARCHER, Mr. ney with an estimate of the amount of the at­ creased energy efficiency and cleaner burning MOODY, Mr. CARDIN, Mr. GRADISON, and Mr. torney's fee at the time a favorable decision is fossil fuels in the near term. Research and de­ SCHULZE join me as original sponsors of this velopment funding for energy technologies important legislation. made. The ALJ, the claimant, or the claim­ which do not contribute to global warming The House first addressed this issue in sec­ ant's attorney may file a protest against the size of the fee during a period of up to 10 must be increased. Such energy technologies tion 9021 of the 1987 Reconciliation Act. The days after the date of the favorable determi­ include solar photovoltaic, solar thermal, wind bill we introduce today contains essentially the nation. energy, biomass energy-including ethanol, as same provisions. Unfortunately, this section In cases of protest by the claimant or the well as longer term development of fusion was not included in the 1987 conference ALJ, or where the attorney wishes to be paid sources and advanced, safe nuclear reactor report. I am pleased to note that the Senate more than $4,000 cap amount, the attorney technologies. Finance Committee recently adopted a set of reforms designed to address the issue of fees must file a petition supporting the fee request. The threat of global warming is one of the for claimant representation during its consider­ This petition is to be reviewed by the individ­ most complicated and challenging problems ation of the 1989 reconciliation bill. I am hope­ ual ALJ hearing the case, or by the regional that scientists and policymakers have ever ful that the issue of claimant representation office where·the ALJ is protesting the fee. faced. The stakes are huge and the conse­ and attorney fees can be resolved in the near In cases of continuing entitlement to bene­ quences of inaction or misguided action may future. fits, where payments have continued through be profoundly negative. The United States in Under present law, attorneys representing the appeal process, the attorney would be general and the Department of Energy in par­ Social Security claimants may petition for a granted an award of 25 percent of the total ticular must take an active leadership role in fee of up to 25 percent of the past-due bene­ amount of benefits paid through the period of developing and implementing an environmen­ fits to which the claimant is entitled. Under the appeal. This amount would constitute an tally sound national energy policy. current procedures, the attorney must petition overpayment and would be repaid by the ben-

29-059 0-90-11 (Pt. 21) 29628 EXTENSIONS OF REMARKS November 16, 1989 eficiary at a rate of 10 percent of benefit each would all agree that his message is appropri­ The Pollution Prevention Advancement Act month. ate and easy for us to accept. I wish the patri­ is our effort to begin to focus Federal efforts Where no benefits accrue per se, e.g., rep­ arch well in his mission as a world spiritual on pollution prevention by establishing a pro­ resentative payee disputes, Medicare eligibil­ leader. gram of coordinated research, demonstra­ ity, disputes over the existence of overpay­ tions, evaluations and technology transfer of ments, et cetera, the fee would be set at an POLLUTION PREVENTION new or improved technologies and practices. amount not to exceed three times the basic ADVANCEMENT ACT Our bill would advance EPA's pollution pre­ monthly benefit amount. This amount will be vention efforts by providing resources and di­ paid through the overpayment procedure de­ rection for new research, funding projects that scribed above and may be disputed by either HON. HOWARD WOLPE are not likely to be undertaken by private the ALJ or the claimant. OF MICHIGAN firms, and by encouraging cooperation among Mr. Speaker, I look forward to working with IN THE HOUSE OF REPRESENTATIVES ongoing private and State-sponsored research my colleagues on the Social Security Subcom­ Thursday, November 16, 1989 programs. mittee in ensuring that every Social Security Mr. WOLPE. Mr. Speaker, today I am joined We see several specific areas where re­ claimant will be able to secure effective repre­ by Congresswoman SCHNEIDER and 15 of my search is key to advancing pollution preven­ sentation. I believe this legislation will go a colleagues in introducing legislation that would tion. These include: socioeconomic, insti­ long way towards this goal. begin to focus Federal efforts on pollution pre­ tutional and regulatory barriers to pollution vention practices and technologies. The Pollu­ prevention; pollution impacts of products and POPE SHENOUDA III MAKES HIS­ tion Prevention Advancement Act would es­ packaging; production processes that reduce TORIC VISIT TO ST. MARK tablish a national program within the Environ­ pollution; innovative methods of reusing and CHURCH mental Protection Agency of coordinated re­ recycling materials; and potential and emerg­ search and testing for innovative pollution-pre­ ing trends in resource use that may impact vention practices and technologies. pollution prevention. HON. EDWARD F. FEIGHAN Presently, the United States generates a Under our legislation, EPA is directed to test OF OHIO staggering amount of waste each year-the pollution prevention innovations through a pro­ IN THE HOUSE OF REPRESENTATIVES EPA estimates that we create 570 million tons gram that would fund projects that demon­ Thursday, November 16, 1989 of hazardous wastes and over 11 billion tons strate or evaluate new or improved technol­ of nonhazardous wastes. The costs to ogies and practices. In addition, to ensure that Mr. FEIGHAN. Mr. Speaker, the Coptic manage these pollutants is estimated at close new innovations are put to use, the bill would community of Greater Cleveland recently hon­ to $100 billion each year, two-thirds of which require an aggressive technology transfer pro­ ored Pope Shenouda Ill, patriarch and spiritual is spent by industry. gram to inform and solicit input from private leader of 22 million Christian . This While, for many, pollution prevention repre­ organizations and State and local govern­ event took place at St. Mark Coptic Orthodox sents a new way of thinking about environ­ ments that could use the results of the re­ Church under the pastoral direction of Father mental protection, it is clearly the best way to search in production processes or waste man­ Mikhail E. Mikhail, the respected and out­ deal with environmental problems. Rather agement systems. standing religious leader in my district. Pope than trying to control or cleanup the pollution Shenouda was in Cleveland to attend the con­ after it has been created, the source of the secration of St. Mark Church. It is a tribute to problem-the waste itself-is reduced. What AMERICAN LIBRARY ASSOCIA­ the people of Greater Cleveland that his Holi­ cannot be reduced should then be recycled to TION GUIDELINES ON SOUTH ness honored us with his historic visit. recapture some of the resources used to AFRICA This was the Pope's first trip to the United manufacture the initial product. States since 1977. Though he primarily came Preventing pollution is the best way to keep HON. MAJOR R. OWENS to visit the Coptic community, which is esti­ toxics out of every facet of the environment; mated at 250,000 in North America with 41 past end-of-pipe approaches often simply OF NEW YORK churches in the United States, he also talked transferred pollution from one environmental IN THE HOUSE OF REPRESENTATIVES privately with President Bush. Pope Shenouda medium to another. In addition, some pollution Thursday, November 16, 1989 Ill is the 117th successor of St. Mark who, ac­ is not amenable to traditional control technol­ cording to tradition, founded the Christian ogies because the source of contamination is Mr. OWENS of New York. Mr. Speaker, Church in Alexandria, Egypt, in 40 A.D. The decentralized. rise to commend the American Library Asso­ Copts have sought to preserve the original lit­ With the high costs and controversy associ­ ciation for its recent passage of its "Guide­ urgy and customs of that founding, and claim ated with treating and disposing of pollutants, lines for Librarians Interacting With South a direct line through its ministry. it makes both economic and environmental Africa." The guidelines are based on opposi­ In Egypt, there are an estimated 7 million sense to focus efforts on reducing the amount tion to South Africa's racist policy of separat­ Copts. In the past 4 years Pope Shenouda of toxicity of materials that need to be dis­ ing its ethnic groups known as apartheid, and has sought to improve relations between posed. reflect a commitment to social responsibility. Copts and the Islamic majority. In 1981, 2 Additionally, pollution prevention contributes They encourage librarians to "aggressively ac­ months before being elected patriarch, Presi­ to our competitiveness in a global economy by quire and publicize" antiapartheid material, dent Anwar Sadat placed him under house reducing industry's costs for raw materials, particularly those books published by mass arrest at a monastery. In 1985, the govern­ waste management and liability. U.S. indus­ democratic and liberation movements within ment of President Hosni Mubarak lifted the tries have a tremendous, untapped potential South Africa. arrest. The patriarch said that this period for reducing wastes through cost-effective The American Library Association created deepened the spiritual life of the church and it changes in production, operation, and raw ma­ the guidelines to counter the South African was a time for Coptic Christians around the terials use. Government's propaganda campaign, in which world of asking God to help. And Pope Shen­ But despite the numerous advantages of it sends hundreds of proapartheid books every ouda never lost faith that he would be re­ waste reduction over other measures, virtually year to libraries in the United States free of leased. all of our environmental protection efforts charge. The guidelines also suggest that if li­ Mr. Speaker, in the spirit of the brotherhood have been on controlling rather than prevent­ brarians visit South Africa, they should only go of man, Pope Shenouda has been a guiding ing pollution. Less than 1 percent of EPA's re­ at the invitation of antiapartheid organizations. light and symbol of spiritual renewal for the 22 search funds are spent on pollution prevention Other library associations are taking an million Coptic Christians worldwide. The influ­ and even that work is limited to hazardous equally tough stance against apartheid. The ence of this religious leader is also felt among waste minimization. For our future economic, Social Responsibilities Round Table of the the people of the world who are not Coptic physical, and environmental health, it is es­ Minnesota Library Association endorsed in Christians. The patriarch believes that the sential that both government and industry August the economic sanctions measures church should speak about peace, human seek ways of reducing this pollution while before the House and Senate this year, and rights, and serve as a witness to the truth. We maintaining productivity. urged Minnesota Senators and Congress- November 16, 1989 EXTENSIONS OF REMARKS 29629 members to support both measures and world. Indeed, the real question of reunifica­ NOMINATION OF JACQUELINE become cosponsors. tion no longer seems "if" but rather "when JONES-SMITH As the first librarian elected to the Con­ and how" it will occur. Hopes for political and gress, I feel that issues such as the freedom economic reforms in East Germany could HON. WILLIAM H. GRAY III movement in South Africa, "glasnost," "peres­ remove much of the rationale for separate troika," continued growth for African-American German states. And under those circum­ OF PENNSYLVANIA political power, and other social and political stances, reunifying 17 million Germans in the IN THE HOUSE OF REPRESENTATIVES developments will reshape the landscape of GDR with the 61 million Germans in the West Thursday, November 16, 1989 the 1990's, and we will enter a 21st century does not in my mind reduce the commitment which will be vastly different from the world of Mr. GRAY. Mr. Speaker, I wish to bring to to democracy and freedom that has taken the attention of the House of Representatives today. Librarians, the expert generalists, have root in the Federal Republic over the past 40 the capacity and the obligation to stay current the outstanding qualifications of Ms. Jacque­ years. Some have recently recalled the dark with this world of megachange. line Jones-Smith, who has been nominated by events in German history. As they do, let them Information will play a critical role in all of President Bush to be Commissioner and the decisions that are made by those who also recall the significant contribution the Chairman of the Consumer Products Safety seek to guide and navigate this rapidly moving German people have made in shaping West­ Commission. Ms. Jones-Smith hails from the society. This is the age of information, and the ern culture and values. Second Congressional District in Pennsylva­ voice of the librarian must be heard. Under these circumstances and within the nia, from the great city of Philadelphia-the I applaud the American Library Association framework of the European Economic Com­ city of brotherly love and sisterly-effective­ and its member librarians for making their munity, German reunification need not be ness-where she grew up and attended public voices heard on the most important issue of feared. school. Ms. Jones-Smith brings more than 10 liberation for the 23 million Africans oppressed I am aware that some are deeply concerned years of local and management experience to under the racist minority regime of South that recent events may portend a neutralist this position. Since 1987 Ms. Jones-Smith has served as Africa, and for seizing the opportunity to edu­ Germany, positioned as a buffer between East staff attorney in the Federal Election Commis­ cate Americans as to the true nature of the and West. I believe this concern has little sion's Office of the General Counsel. From horrific policy of apartheid. foundation and must be evaluated against 1985-87 she served as assistant county attor­ overwhelming evidence that the Federal Re- ney for Montgomery County, MD, where public is firmly anchored politically and cultur­ among her responsibilities, she prosecuted ally in the West. Yet it makes infinite sense civil infractions in the areas of health, public that Germany would take a deep interest in safety and environmental protection, and rep­ the emerging, independent nations of the resented the Department of Social Services in THE TRIUMPH OF FREEDOM IN eastern bloc. There are sound reasons for us child neglect and abuse cases. Prior to that EASTERN EUROPE to welcome that interest which should pro­ time she worked in a number of progressively mote broader ties with the entire Western responsible positions including a 6-year tenure HON.E.THOMASCOLEMAN community of nations. Indeed, this develop- with the Maxima Corp., where she developed oF MissoURI ment would further the objectives of 45 years a substantial business base worth several mil­ IN THE HOUSE OF REPRESENTATIVES Of Western policy in that part Of the world. So lions of dollars and managed staff in project long as its policies and actions reflect this sites throughout the United States. Thursday, November 16, 1989 broader interest, German influence in Eastern Ms. Jones-Smith received her juris doctor­ Mr. COLEMAN of Missouri. Mr. Speaker, Europe should promote, not impede, its ties ate from American University in 1984 and is none of us here today will ever forget the as- with the West. admitted to practice law before the U.S. Su­ tounding events which have taken place in Mr. Speaker, the unprecedented pace of preme Court; the U.S. Court of Appeals for East Germany during the past week. For reform-some call it revolution-in Eastern the District of Columbia and the Ninth Circuits; those of us who have stood before the Berlin Europe is exhilarating. But as our spirits soar, the U.S. District Court and the Court of Ap­ Wall, physically and symbolically one of the our feet must be firmly planted in reality. We peals of Maryland. She is a member of the most offensive structures ever built by man, American Bar Association, the National Bar these events have made our hopes for free- must recognize that recent events create tre- Association, and the Maryland State Bar As­ dom soar. And the move toward freedom, mendous uncertainty for the Soviet Union sociation. She is imminently qualified to serve there and elsewhere in Eastern Europe, con- which itself is attempting great reforms. We in this position. tinues at a pace unimaginable even a few must recognize that a secure Soviet Union weeks ago. looking inward to meet the great needs of its , so long denied mil- own people is the best assurance that reform THIS NOBLE HOUSE lions of East Germans, fulfills one of our long- in Eastern Europe will continue and become standing policy objectives. Open access to the · permanent. HON. BEN GARRIDO BLAZ West may stop and will certainly slow the flow For this reason, President Bush's December OF GUAM of refugees from East Germany; simply know- meeting with President Gorbachev assumes IN THE HOUSE OF REPRESENTATIVES ing that they have this freedom may be suffi- historic importance. It is an opportunity, which cient to encourage East Germans to remain in 1 firmly believe the President will take, to reas­ Thursday, November 16, 1989 the GDR to work for permanent reform. Cen- sure the Soviets while affirming our position Mr. BLAZ. Mr. Speaker, one of the great tral to this reform are free elections with par- that they must continue their hands-off policy privileges of serving in this noble House is ticipation by independent parties, full access to toward peaceful change in Eastern Europe. that through the eyes of great men and the media, and the resources to convey their women of the world, we bear witness to histo­ political message. Mr. Speaker, it is not hubris to take pride in ry. We have seen the world through Sir Win­ Concommitant with political reform is the the policies, established years ago by state­ ston Churchill, Gen. Douglas MacArthur, Presi­ move toward a more competitive, market ori- men now gone, that have brought us to this dent Corazon Aquino, and, yesterday, moving­ ented system in East Germany. As it works to time of historic opportunity and hope. Over ly electrifyingly, and most vividly through the emerge from Socialist economic chaos, East the years America and its allies have main­ eyes of a private citizen-Mr. Lech Walesa. Germany will need our help. But clearly the tained their unity in the face of divisive issues. Another of the great privileges of serving historic and cultural ties shared by the This unity has been maintained at great cost here is that we as a body can make history German people dictate that the major portion in treasure and sometimes in blood. Today through our actions. As we rejoice today over of this burden be carried by the Federal Re- those sacrifices on the part of the American the great changes taking place throughout the public. people and free people everywhere stand vin- world, as human rights movements take root, Consideration of the German question now dicated. We are right to take pride in this won­ and political self-determination becomes a re­ shifts from the academic arena to the real derful achievement. ality, let us be mindful that in our own country, 29630 EXTENSIONS OF REMARKS November 16, 1989 we have fellow Americans who are yet to Answer. The four other options were Mr. Speaker, Crowley Maritime Corp. was enjoy full membership in the family. I am status quo, incorporation, free association, founded in 1892, and is a family owned com­ speaking of the people I represent, the people independence and other, undefined status. pany. They have grown over the years, and of Guam. Each has a clear definition by name, of one of the above, except for free association. are currently engaged in international shipping For over 91 years, our people have been Free association is the status which the Fed­ services, ocean, and harbor tug and barge op­ waiting in line for recognition as equals. The erated States of Micronesia and the Repub­ erations, heavy haul services, and marine pas­ Vietnam Veterans' Memorial and the many lic of the Marshall Islands now hold. As citi­ senger services. And that is not all, Mr. names on it of Americans from Guam is De­ zens of the United States, the people of Speaker. They also repair ships, salvage, pro­ fense Exhibit A that we are equal enough to Guam, in H.R. 98 "recognize the sovereignty vide environmental services, and petroleum fight and die for our country. This bill, the of the United States over Guam." sales and distribution. It is evident that this Commonwealth bill for Guam (H.R. 98), which 6. Why is the success of H.R. 98 important company is heavily involved in many facets of to the whole American family? as of this date has about 123 cosponsors, the maritime industry. seeks to make us equal enough to live as Answer. It is in the best interests of Amer­ icans not only in Guam but also in the While headquartered in San Francisco, countrymen. States of the Union to allow Guam to pros­ Crowley's reach extends around the globe. Mr. Speaker, in discussing H.R. 98 with my per as a free American community in the With 4,000 employees to get the job done, colleagues, I have received a number of ques­ western Pacific. Guam is a showcase of Crowley's slogan boasts: "Anything, any­ tions. I thought it helpful to list them with an­ American democracy to the western Pacific where, anytime, on water." They deliver on swers in the interest of better understanding and eastern Asia and represents the best those words, Mr. Speaker, providing the very of and appreciation for our bill. that is American. The territory consists of best in customer service. many races and cultures thriving together QUESTIONS FROM COLLEAGUES ON H.R. 98, Mr. Speaker, my wife Lee joins me in ex­ THE GUAM COMMONWEALTH BILL in peace and economic prosperity. 7. What is the cost to implement H.R. 98? tending our most hearty congratulations to 1. What does H.R. 98 propose to do? Answer. Implementation of H.R. 98 re­ Crowley Maritime Corp., and to its president, Answer. It petitions Congress to allow the quires a negligible cost to the federal gov­ Thomas B. Crowley. We wish everyone asso­ people of Guam to participate to the fullest ernment. It is estimated that less than half extent possible in the political decisions af­ ciated with Crowley Maritime Corp. all the best a million dollars will be needed to assist the in the years to come. fecting their day-to-day lives. Also, they Commonwealth for transitional activities would like the same constitutional protec­ tions to which Congress has entitled their from the current status to that of Common­ fellow United States citizens in the 50 wealth. A TRIBUTE TO THE WESTERN states. 8. Do the citizens in Guam pay federal MASSACHUSETTS VOLLEYBALL 2. What political status does Guam have income tax? CHAMPIONS, THE TURNERS now? Answer. The Guam income tax structure FALLS INDIANS Answer. Guam is an organized, unincorpo­ is the result of an Act of Congress Section rated territory of the United States. On 31 of the Organic Act, which imposed the August 1, 1950, President Harry S. Truman Internal Revenue Code on Guam to create a HON. SILVIO 0. CONTE signed into law an act of Congress which es­ Guam territorial income tax. Under this OF MASSACHUSETTS tablished the Guam Bill of Rights and the regime, the Governor of Guam administers IN THE HOUSE OF REPRESENTATIVES territory's tripartite government. Congress and enforces the tax and the tax is payable decided in its 1950 statute that the full directly to the Government of Guam. Resi­ Thursday, November 16, 1989 corpus of the United States Constitution dents of Guam, therefore, effectively pay a Mr. CONTE. Mr. Speaker, in the daily rou­ federal income tax under this system re­ ought not to apply in Guam. Thus the act tine of our lives few experiences are more in­ of ·congress referred to Guam as an unin­ ferred to as a "mirror system". The Guam tax laws are generally a mirror image of the vigorating, more inspiring than tracking the corporated territory. growth of champions. Over the last 4 years, In point of fact, however, irrespective of Internal Revenue Code. The people of the various legal descriptions of Guam, it Guam fill out tax forms which are identical the volleyball team from Turners Falls High remains, in essence, a mere possession. to IRS forms. By Act of Congress, however, School has provided many of us in western 3. What is Commonwealth status? Americans residing on Guam file their Massachusetts with a new love for the sport Answer. Living in a United States Com­ forms with and pay their income tax to the and a deep respect for this team. I rise today monwealth, as envisioned in H.R. 98, the Government of Guam rather than the IRS. to pay tribute to the Indians and their many people of Guam would have the right to accomplishments. full, internal self-government. This extends Along the way this team has taken their to all issues of local government but does A CONGRESSIONAL SALUTE TO not prevent Congress applying Federal laws CROWLEY MARITIME CORP. bumps. On a few occasions, they have fought in the Commonwealth. The provisions of hard for victory only to be spiked by defeat. the Constitution, treaties and laws of the HON. GLENN M. ANDERSON But, during the last 4 years they have served United States which pertain to the Com­ OF CALIFORNIA notice that they are a powerful force. Last monwealth remain supreme. It differs from IN THE HOUSE OF REPRESENTATIVES week, for the third time in these past 4 years, the current status on a very significant they clinched the western Massachusetts point: the current status was decreed soley Thursday, November 16, 1989 crown, setting themselves up for statewide by Congress; the proposed status seeks to grant political self-determination and full Mr. ANDERSON. Mr. Speaker, it is my privi­ competition. self-government, i.e., a status we as a people, lege to rise today to recognize and pay tribute The corps of seniors on this team have participated in determining. to one of the most distinguished firms in the become fixtures in the pages of their local 4. How do the people of Guam feel about maritime industry, Crowley Maritime Corp. newspaper. Captains Deb Partridge, Kathy H.R. 98? Crowley Maritime will be honored at the Smith, and Carry Task are joined by Shelley Answer. On January 12, 1982, the voters Harbor Association of Industry and Commerce Deso, Nikki LaFleur, and Michelle McCord as of Guam went to the polls to choose among 11th Annual "Salute to Liberty" Award Ban­ the heart of this continually maturing dynasty. seven different forms of political status. Over the years, they have become more tal­ These were commonwealth status, State­ quet in Long Beach, CA, this Friday evening. hood and five others. Commonwealth status Crowley Maritime Corp. is being recognized ented individually. But more importantly, they garnered the greatest number of votes: on this occasion for its outstanding service have learned the magic that comes from play­ forty-nine <49> per centum; Statehood, and significant economic contribution to the ing as a team. twenty-six (26> per centum. On September South bay area. Crowley's contributions to our Perhaps more than any other sport, volley­ 4, 1987. Guam's voters returned to the polls area are ongoing, however, of a truly grand ball requires dynamic communication and co­ and chose between just commonwealth nature. Crowley Maritime has been engaged in operation between the players on a team. status and Statehood. Commonwealth the cleanup in Prince William Sound, AK, after Judging by their impressive record this year, status won by seventy-three (73> per centum the Exxon Valdez oilspill, and in the rescue ef­ 18-1-0, and their accomplishments over the to twenty-seven (27> per centum for State­ hood. forts and cleanup following the Lorna Prieta last 4 years, these girls have learned these 5. What were the options for Guam's earthquake in the northern California bay area. lessons well. voters other than commonwealth status and This demonstrates the spirit of Crowley Mari­ Coach Rachel Blain has worked hard to statehood? time. bring this team together. Since taking over the November 16, 1989 EXTENSIONS OF REMARKS 29631 reigns at Turners Falls, she has registered five the asbestos hazard. When a 1985 EPA budgeting. As we attempt to resolve the Fed­ impressive winning seasons. A former player I survey estimated that as much as 75 percent eral budget issues which confront us this coach at Amherst College, her team defeated of all school cleanup work was being done un­ week, I believe it is the right time to discuss perennial nemesis Amherst High School for safely, Congress responded by enacting the this proposal. Members of Congress, the this year's western Massachusetts champion­ Asbestos Hazard Emergency Response Act media, and our constituents have all ex­ ship. [AHERA] in 1986. AHERA requires schools to pressed their dissatisfaction with the account­ Mr. Speaker, 2 days ago, the Turners Falls inspect for asbestos and deal effectively with ing gimmicks and budget tricks used to mask Indians volleyball team traveled 2 hours to any asbestos found. And it requires that the size of the budget deficit. Pay-as-you-go is compete in the State semifinals. It's a long trip people be State-certified after EPA-approved a straightforward, no nonsense plan which training in order to perform asbestos-related to take in the middle of the week. Yet, two would not allow any new spending unless it is busloads of parents, friends, and fans made work. offset by a spending cut or a tax increase. the trek to cheer this team on. This is testimo­ Much remains to be done. This year, This standard would apply to most Govern­ ny to the excitement of success. These girls AHERA's inspection and planning deadlines are more than champions of their sport. They became due. School expenditures for asbes­ ment programs, with the exception of certain are an inspiration to their community. tos abatement are expected to remain high or essential programs. increase for several years to come. Now more The driving force behind Gramm-Rudman­ than ever, the schools with the mQst serious Hollings is the automatic, across-the-board HELPING SCHOOLS CLEAN UP asbestos hazards and the greatest financial ASBESTOS HAZARDS spending cuts that were designed to be so need must be able to look to their Govern­ unfair and severe that they would force the ment to help provide the resources to get the budget process to work. However, since this job done. HON. JAMES J. FLORIO legislation was enacted, we have twisted and That is why I am introducing legislation to OF distorted numbers and statistics in order to IN THE HOUSE OF REPRESENTATIVES reauthorize ASHAA for an additional 5 years. The bill also changes current law in several avoid the sequestration axe. We have resort­ Thursday, November 16, 1989 important respects. First, it increases the ed to budget tricks and inadequate spending Mr. FLORIO. Mr. Speaker, I am today intro­ annual authorization ceiling from $125 million cuts which have not really offset spending in­ ducing legislation to reauthorize the Asbestos to $250 million, to give us the flexibility we will creases to avoid deficit increases. School Hazard Abatement Act [ASHAA], a need to fully respond to this challenge as While we were cutting corners and avoided cornerstone of the Federal effort to rid our school asbestos abatement activities reach the difficult choices in order to meet the deficit Nation's schools of the hazards of damaged their peak. Second, it sets deadlines for the reduction targets, we still did not manage to asbestos. Under ASHAA, EPA provides loans Environmental Protection Agency to distribute avoid sequestration. Our current budget policy or grants to needy schools to help correct applications and make awards each year, so has failed because everyone wants something these hazards and their threat to the health of that schools can more rationally plan their that does not exist-painless deficit reduction. our children, their teachers, and other school budgets. Third, it clarifies that a school abate­ Instead of forcing tough budgetary decisions, personnel. ment project must be in compliance with Joining me today are 66 original cosponsors AHERA in order to qualify for an ASHAA loan Gramm-Rudman-Hollings has P.OStponed who share my strong support for the ASHAA or grant. Fourth, it requires EPA to assess in them. This can only be reinforceq by Senator program. Included among them are Congress­ its annual reports to Congress on the program HOLLING's recent request for a divorce from man ToM LUKEN, chairman of the Subcommit­ the remaining needs for ASHAA assistance. this policy "on grounds of infidelity and irrec­ tee on Transportation and Hazardous Materi­ In addition, the bill limits the portion of oncilable differences." als, which has jurisdiction over the program, ASHAA funds which can be spent for inciden­ If a less than honest budget process cannot and Congressman DENNIS ECKART, also a tal and supporting purposes such as training, avoid sequestration, it is time for a different member of the subcommittee. They are both technical assistance, and information dissemi­ approach. Pay-as-you-go budgeting is a nation, to assure that the lion's share of the recognized leaders in our efforts for effective simple and logical plan. This proposal does funds is available for direct grants and loans Federal regulation over asbestos. not block new spending, but it will force us to The dangers of asbestos are well known. to schools. honestly meet spending targets by requiring Extensive epidemiological evidence has dem­ The bill is supported by the Asbestos-in­ an equal offset for any new spending. We im­ onstrated that inhaling microscopic asbestos Schools Coalition, composed of more than 30 plemented a deficit reduction plan that has al­ fibers can lead to cancer and asbestosis. organizations including the National Education There is no known safe level of exposure­ Association, the National PTA, the American lowed the Federal Government to play fast studies indicate that even very slight expo­ Association of School Administrators, the and loose with a mounting economic disaster. sures can be life-threatening. And medical sci­ American Public Health Association, the Envi­ Pay-as-you-go budgeting serves as a cap on ence suggests that children may be particular­ ronmental Defense Fund, the National Confer­ total spending but it also leaves room to meet ly vulnerable. ence of State Legislatures, the Service Em­ the changing needs of our society. ployees International Union, the U.S. Catholic Before this evidence was publicly available, Many who have campaigned against taxing asbestos was used extensively in schools for Conference, and the U.S. Conference of and spending have mortgaged our children's insulation because of its . well-known resist­ Mayors. future by borrowing and spending on an over­ ance to fire. In a substantial number of I urge my colleagues to help see that we charged credit card. While gimmicks were uti­ schools, asbestos materials have become maintain our commitment to eliminate the haz­ damaged, releasing asbestos fibers into the ards of asbestos in our Nation's schools, by lized to hide a national debt that soared to air and creating a health hazard for school­ keeping faith with the schools which need our record levels, we continued to borrow more in children and employees. help in coping with the costs of asbestos order to spend more. The tough budget deci­ ASHAA was enacted in 1984 as a biparti­ abatement. sions which have been avoided in the 1980's san initiative to help the schools in greatest can no longer be ducked. We cannot afford to need with the costs of abating this hazard. To THE TIME HAS COME FOR A continue our rhetorical assault on the budget date, Congress has authorized $700 million PAY-AS-YOU-GO FEDERAL deficit; it is time for concrete and constructive for this program; schools have actually re­ BUDGET action. It is time to quit borrowing and spend­ ceived around $200 million. ing. It is time to adopt a policy designed not to Meanwhile, EPA estimates existing needs at HON. DANTE B. FASCELL increase the deficit. It is time for pay-as-you- $3 billion. EPA has been able to assist only oF FLORIDA go budgeting. I am willing to subject my policy 17 percent of schools requesting assistance. IN T~E HOUSE OF REPRESENTATIVES initiatives to pay-as-you-go budgeting, and I Even of the highest priority asbestos abate­ Thursday, November 16, 1989 urge our colleagues to put their programs up ment projects, less than half are being served. to the same test. It is crucial that asbestos be handled care­ Mr. FASCELL. Mr. Speaker, I rise in support · fully. Improper abatement work can increase of a sound budget proposal, pay-as-you-go 29632 EXTENSIONS OF REMARKS November 16, 1989 CONFERENCE REPORT ON DOD II submarines armed with D-5 missiles, and a search on the effects of ozone depletion in APPROPRIATIONS FOR FISCAL variety of other aircraft and shipbuilding pro­ the Earth's atmosphere. YEAR 1990 grams. The United States must take a lead on the According to the Government Accounting issue of global warming. We missed our op­ HON. JIM MOODY Office, the 5-Year Plan of the Department of portunity to invite the nations of the world to OF WISCONSIN Defense is underfunded by $150. billion. We the United States to negotiate an international IN THE HOUSE OF REPRESENTATIVES cannot meet that shortfall and still keep all convention on global warming when the envi­ these programs moving forward. The sooner ronmental ministers met in The Netherlands Thursday, November 16, 1989 we make these choices, the less traumatic earlier this month. But all is not lost. EPA Ad­ Mr. MOODY. Mr. Speaker, early in debate they will be. Unfortunately-for 1 more year­ ministrator William Reilly and Secretary of on the defense budget for fiscal year 1990, I this bill continues to fund programs we cannot State Jim Baker have both stressed the im­ was hopeful that this might be the year we fi­ possibly sustain. portance of the United States hosting such a nally established clear priorities and made Next year we must reorder these budget pri­ meeting. The United States has signed the painful choices about defense spending. We orities to be economically responsible ahd fis­ declaration resulting from the Ministerial Con­ have arrived at the end of the defense bill cally realistic. ference on Atmospheric Pollution and Climatic consideration and few, if any, of those choices Change. Officially, we are committed to the have been made. findings of this conference, so I believe we For 1 more year, Congress and the Presi­ GLOBAL WARMING should followthrough with action. dent have insulated defense programs from hard budget realities. For 1 more year, we have made adjustments at the margin and put HON. TIM VALENTINE TRIBUTE TO MAYOR JOHN C. off the real choices. For 1 more year, we have OF NORTH CAROLINA PORTER kept programs going at lower levels-and IN THE HOUSE OF REPRESENTATIVES stayed the axe. HON. RICHARD H. STALLINGS Because this bill is seriously out of step with Thursday, November 16, 1989 OF IDAHO economic realities and the current world politi­ Mr. VALENTINE. I am not a scientist by pro­ cal situation, I cannot support it. fession, but as a concerned citizen who IN THE HOUSE OF REPRESENTATIVES I certainly do applaud the positive aspects deeply cares about the condition of the world Thursday, November 16, 1989 of this bill in arms control. And, for the first we are going to leave our grandchildren, I be­ Mr. STALLINGS. Mr. Speaker, I would like time, Congress has approved a budget that in­ lieve that we are charged with halting the im­ to take this opportunity to pay tribute to the cludes real cuts in spending for the strategic pending consequences of global warming. I mayor of my hometown, the Honorable John defense initiative-star wars. am encouraged that public awareness is C. Porter, who decided not to seek reelection But also included in this bill are the seeds gradually growing. Here in Congress we are after serving as mayor of Rexburg, ID, for 16 for a future budget disaster. It initiates or con­ working toward considering much needed years. tinues programs whose budgets will balloon clean air legislation, but, to date, there is in­ I would like to insert in the CONGRESSIONAL up in near future years. As each of these pro­ sufficient leadership coming from the Presi­ RECORD an editorial, published recently in the grams grows and the overall defense budget dent on this most important environmental Idaho Falls Post-Register, honoring Mayor shrinks in real terms, how will we make up the issue. Porter. shortfall which will then be scores of billions President Bush, as a candidate, was 100 The modern history of Rexburg is insepa­ of dollars? In one of three ways: Either we will percent correct when he stated that "these rable from the story of one man, John raid the accounts that are the foundation of [environmental] issues know no ideology, and Porter. our defense-personnel and readiness-or we no political boundaries." He also promised to In January, Porter will leave the political will inefficiently abandon many of the pro­ convene a global conference on the environ­ stage with the heartfelt thanks of the grams we have embarked upon-or we will ment at the White House within the first year people of Rexburg. abandon our budget deficit targets. of his term in office. Well, the time is now, and It is hard to think of a Rexburg without This conference report provides $4.3 billion in true bipartisan fashion, I would like to Porter. He has been mayor for 16 years and a city councilman for the 12 years previous. to build two stealth bombers this year and 5 extend my offer to assist our President in any His fingerprints can be found on everything next year. We do not know if this bomber will way to help fulfill that campaign promise. I am that has happened there in the last three truly i:>e stealthy. We do not know how much it sure my colleagues join me in urging Presi­ decades, almost all of it progressive, sensible will cost-$530 million is only an optimistic es­ dent Bush to follow through on his rhetorical and wise. timate. Yet we are moving ahead with pro­ commitments of the campaign season to the During the period he was mayor, the pop­ curement. environment. The future of this planet de­ ulation of Rexburg nearly doubled, going This conference report funds two land­ pends on our action now. from 7,500 to 12,500. Water mains were en­ based mobile ICBM's: the MX rail garrison and Since the United States leads the world in larged and water storage capacity multiplied eight times. Sewage lines were extended and the Midgetman. Last year, Congress kept both emission of gases that contribute to the a treatment facility built with a capacity programs going 1 more year so that the new greenhouse effect-carbon dioxide, methane, double today's needs. A new storm sewer President could choose between the two. fluorocarbons, and nitrous oxide-1 believe system is in place. Streets and parking have Here we are deferring that choice 1 more that we should likewise provide some leader­ been steadily expanded and improved. year. Each year we do this, a real choice is ship in the world community on the matter of The list goes on, through the fire station less likely. Yet we are providing $1.8 billion for halting these emissions. The scientific com­ and police complex to ball fields, a golf these two, duplicative systems. munity is divided on the causes and conse­ course and parks. But the Porter legacy will In this bill, we continue research and devel­ quences of global warming, but the experts not be merely one of buildings and streets. Porter will be remembered for the charac­ opment funding for the V-22 Osprey in order agree that the Earth will heat up. Modest esti­ teristics which resulted in his so seldom to defer another decision on procurement. mates suggest that the Earth will warm 3 to 9 being opposed for re-election: fairness, in­ The V-22 is a major new program with a final degrees Fahrenheit because of the enormous tegrity and low-keyed good sense. price tag of at least $28 billion. The V-22 has buildup of gases that have already accumulat­ Porter steered Rexburg through the a single mission: to move Marines from ship ed in the atmosphere. Teton Dam flood and subsequent rebuilding to shore. That mission is currently filled by As a member of the House Committee on with a steady confidence. He did not seek helicopters at a fraction of the price. Yet we Science, Space, and Technology, I became the spotlight but shared it with others. So keep the program going in this bill. more acutely aware of the severity of our exemplary was his administration that the two candidates in last Tuesday's election ac­ Meanwhile, this budget moves forward with global warming problems when I participated knowledged there were few issues to debate, several major programs: improvements in the in a congressional delegation visit to Antarcti­ no cleaning to be done. B-1 and B-52 strategic bombers, the national ca to inspect the scientific research projects As a former publisher of a highly regard­ aerospace plane, the AMRAAM missile, short­ that are being conducted at the South Pole. ed twice-weekly newspaper and a member of range nuclear missiles, the M-1 tank, Trident The Antarctic is a primary site for critical re- a family that has played a major role in the November 16, 1989 EXTENSIONS OF REMARKS 29633 economic welfare of Rexburg, Porter has INTRODUCTION OF THE COM­ public utilities, the act all but prohibits devel­ reason to boast. And every reason to with­ PETITIVE WHOLESALE ELEC­ opment of nonexempt generating facilities. draw from public life. But we are confident TRIC GENERATION ACT OF Today, we feel that the marketplace has cer­ Porter will continue to be both modest and 1989 tain safeguards and regulatory entities which active. We commend John Porter and thank make amendment to PUHCA feasible. Under him for all he has done. Rexburg and east­ ern Idaho have been lucky indeed to benefit HON. W.J. (BILLY) TAUZIN the Competitive Wholesale Electric Genera­ from his long and highly successful public OF LOUISIANA tion Act of 1989 the Federal Energy Regula­ service. IN THE HOUSE OF REPRESENTATIVES tory Commission and State utility regulators continue to fill the role for which they were Thursday, November 16, 1989 empowered. In fact, I believe that segments of REAUTHORIZE FUNDING FOR Mr. TAUZIN. Mr. Speaker, today I am intro­ the Public Utility Holding Company Act of THE MARY McLEOD BETHUNE ducing the Competitive Wholesale Electric 1935, while once necessary to ensuring a reli­ MUSEUM AND ARCHIVES Generation Act of 1989. This is a modified able supply of energy, today inhibit the very companion bill to Senator JOHNSTON's growth in that supply it was enacted to amendment to S. 406. This bill includes modi­ secure. HON. JOHN LEWIS fications designed to mitigate consumer con­ In 1989, the great demand for electricity OF GEORGIA cerns over the potential for self-dealing by calls for new instruments with which potential public utilities; but otherwise tracks the Senate IN THE HOUSE OF REPRESENTATIVES power suppliers in the United States can ef­ bill. As with the Senate version, this legislation fectively grow and provide ratepayers with the Thursday, November 16, 1989 is intended to initiate spirited debate on the electricity needed to see our way into the next Mr. LEWIS of Georgia. Mr. Speaker, today I future of the wholesale electricity generation century. While this legislation is certainly im­ industry. The complexity and potential ramifi­ am introducing legislation to reauthorize fund­ perfect, we submit it as the clay from which cations of this legislation demand thoughtful ing for the operation and maintenance of the sound policy might be molded. contemplation of the issue. Mary Mcleod Bethune Museum and Archives In fact, during this course of debate, we This legislation modifies the Public Utility [BMA]. may find that the approach of the Competitive Holding Company Act of 1935 to remove ob­ This legislation calls for an authorization of stacles to competitive wholesale generation. Wholesale Electric Generation Act of 1989 is $232,000 for fiscal year 1990, $240,000 for The bill would effectively allow utilities and not yet the proper mechanism to facilitate the fiscal 1991, and $250,000 for fiscal year 1992. non-utilities alike to develop lndependennt evolution of the wholesale electric generation This facility, named after the renowned edu­ Power Producers [I PPS] in a holding company market. However, this legislation poses impor­ cator and activist Mary Mcleod Bethune, is format exempt from the limitations of PUCHA. tant questions: To what extent should compe­ the only federally supported facility of its The additional House language reinforces pro­ tition enter the wholesale generation market type-chartered to document and preserve hibitions against utility expolitation of transmis­ and perhaps even more fundamentally, can the history of African-American women. Unfor­ sion lines or affiliate relationships to undue competition provide a reliable supply of elec­ tunately, over the years the accomplishments advantage in a competitive environment. tricity? Should the legislation address the and achievements African-American women Some will ask why we need amend such a question of transmission access, and if so, have not been chronicled or documented. The tried and venerable statute? The answer lies under what circumstances? Bethune Museum and Archives houses the in the fast paced evolution of the utility indus­ As we wrestle with these questions, I fully largest manuscript collection related to the in­ try as that industry attempts to supply the expect the legislative process to improve this dividual and collective achievements of Afri­ energy needs of our constituents. All across bill as the spectrum of views and opinions is can-American women. America we are seeing the signs of things to heard. Our amended version of Senator JOHN­ The BMA has a two-tiered mission: to pre­ come. In early June, utilities in the Washing­ STON's language speaks to the concerns of serve and make available documentary evi­ ton, DC, metropolitan area dropped voltage in groups who see the potential for self-dealing dence of African-American women and their order to prevent a serious power outage. In by utilities at the expense of the ratepayer. organizations; and to document and interpret New England, reserve margins are so thin that This added section illustrates our recognition the life of Mary Mcleod Bethune. power outages threaten to become frequent and respect for concerns leveled by consumer This reauthorization will enable the BMA to occurrences. While only a few regions of the advocates and smaller independent energy continue its research, planning, and installa­ country are affected today, the long term na­ producers. tion of a permanent exhibition on the life of tional picture is just as serious. The North Undoubtedly, questions will remain regard­ Mary Mcleod Bethune. The proposed three­ America Electric Reliability Council projects a ing the advantages that utilities possess in dimensional exhibition will be the first to fully 2 percent per year peak demand load in­ even the most competitive atmosphere. My investigate multidimensions of this great crease through 1999 for the United States. reaction is that we must listen to the debate woman's life. This exhibition will enhance and Unfortunately, there is presently inadequate and decide how best to balance those con­ highlight many dimensions of her life and little construction of generating plants because of, cerns with the logic that experienced partici­ known areas of African-American history and among other things, the restrictive nature of pants in wholesale electric generation should women's history. the Public Utility Holding Company Act of be thoroughly heard. In the coming years, the BMA will also un­ 1935. This stand-alone legislation should face dertake a number of other exciting initiatives. At this point, I believe it is appropriate to both tests and criticism over the course of the It will continue to interpret the site through remark on the Public Utility Holding Company debate. That is precisely the reason for drop­ tours, programs educational materials, and im­ Act, because it is a testimony to the crafts­ ping in this legislation today. We want to begin proved public relations programs. BMA will manship of that legislation that we stand here, the educational process to consider the way also launch a national search for primary over 50 years after its enactment, to discuss a our electric energy supply is generated for in­ sources and photographs related to Mary narrowly focused modification. dustry and the people of the United States. Mcleod Bethune. In 1935, a handful of giant utilities held the Most thinking people recognize that a Since its establishment, the BMA site has lion's share of the generating capacity in the stable, inexpensive supply of energy is neces­ been unable to accommodate handicapped United States. Their intentionally complex and sary to a globally competitive economy. and elderly persons. The 1990 reauthorization deceptive accounting practices made monitor­ Today, as never before, our economy feeds request contains funding for ramps and other ing utility dealings all but impossible. Further, on a reliable supply of electricity. The great facilities to accommodate them. a fledgling regulatory system did little to strains placed on the energy generators in Mr. Speaker, my colleagues, I urge your ensure that prudence of investment. The 1935 certain regions of the United States are fright­ support of the reauthorization of this small but Act severely limited the range of utility invest­ ening. Computers, lights, televisions, significant museum which is chartered to col­ ment to address the outrageous abuses that radios. * * * the very tools of communication lect and display the significant holdings of unregulated utilities perpetrated on their stock­ in our society are threatened by the ominous Mary Mcleod Bethune and ot~er outstanding holders and customers. By establishing ex­ specter of voltage drops, brownouts, and roll­ African-American women. traordinarily restrictive investment criteria for ing blackouts. And that threat is very real. 29634 EXTENSIONS OF REMARKS November 16, 1989 Secretary of Energy James Watkins stated will celebrate 10 years of service to the From my home State of Colorado, the Bron­ that potential electric generation shortages people of the Pee Dee. cos hold an 8-and-2 record this season. The pose a threat to the national security of the On November 16, 1979, Mcleod Hospital Bronco's vigorous spirit epitomizes the rugged United States. moved four blocks down Cheves Street from terrain of the Rocky Mountains and the Often Congress is blamed for not investing the facility that had served the Florence com­ choppy waters of the Colorado River. in the future good of the Nation, opting in­ munity for over 60 years. Mcleod became the Spawned a mile high in the city of Denver, the stead to roll in the turmoil of the day. Today, I regional medical center intended to serve the Broncos flourish in the crisp mountain air and call on my colleagues to educate themselves medical needs of the people of the Pee Dee are forever inspired by the pioneer spirit of the and join in this discussion. Whatever side you into the next century. Ninety-two patients and people in Colorado. are on, join the debate. We have asked the 923 Mcleod employees found a new home There are many Coloradans here in the questions today, because in the end, the Con­ that day in a building that was described as a Washington area. I hope that all of those at­ gress must answer them. "castle" and a "spaceship." tending Monday night's game will join me in Rather than wait for the crisis conditions of Regardless of what the building looked like renewing ties to our home State by showing electrical brownouts and blackouts, I suggest on the outside, the modern operating facilities, enormous enthusiasm and loyalty for our foot­ we begin now to see to it that America is attractive offices, bright hallways, pleasant pa­ ball team. I cannot praise the Broncos without never short on electrical power. tient rooms, and technologically advanced mentioning the president and chief executive equipment were state of the art. That Novem­ officer, Pat Bowlen, and head coach, Dan Reeves. NEWEST LANDMARK IN OUR ber morning in 1979, patients awoke in An outstanding athlete in his own right, NATION'S CAPITAL Mcleod Memorial and slept that evening in Mcleod Regional Medical Center. triathlete Bowlen has helped the Broncos win Today, Mcleod is not only an outstanding three division crowns and establish the best HON. JOSEPH M. McDADE medical facility, but it is also an economic overall and home record in the American OF PENNSYLVANIA draw to the Pee Dee. All the tax incentives in Football Conference. Since he became head IN THE HOUSE OF REPRESENTATIVES the world won't bring new business and indus­ coach in 1981, Dan Reeves has inspired the Thursday, November 16, 1989 try to an area if the community can't offer Broncos with his knowledge, skill, and leader­ modern and high quality medical services. ship. Under Reeve's guidance, Denver has Mr. McDADE. Mr. Speaker, I rise today to Mcleod has helped us sell this area to incom­ enjoyed six winning seasons and four playoff call attention to the newest landmark in our ing business and industry, and shows them positions. Nation's Capital. An antique school bell from that this is a growing and progressive commu­ A victory for the Broncos on Monday, No­ Milford, PA, is now permanently displayed on nity. vember 20, 1989, would mark the favorable the plaza of the U.S. Department of Educa­ Through the years, Mcleod Regional Medi­ continuation of a longtime rivalry with the Red­ tion. cal Center has proved to be much more than skins, and bring satisfaction among Bronco This new landmark holds a very special just a hospital, more than just a place sick fans everywhere. place in the hearts of everyone who grew up people go for medical treatment. Mcleod in the foothills of the Pocono Mountains. Its offers a wide range of health care serJices. toll long called the students of Milford High And it's the little things that make Mcleod HOUSING AUTHORITY OF LOUIS­ School to their studies. Milford High was the special-the valet parking for senior citizens, VILLE RECEIVES HUD ANNUAL only high school in Pike County, PA, and the presurgery tapes and tours for surgery pa­ PERFORMANCE AWARD housed Milford's elementary school classes, tients, career programs for high school stu­ too. dents, the hospice program, and the child de­ HON. ROMANO L. MAZZOLI Learning and Liberty is the theme of this velopment center, to name a few. It's more OF KENTUCKY week's celebration of American Education than a hospital-it's a health care community IN THE HOUSE OF REPRESENTATIVES Week. With the dedication of the Milford within our community dedicated to serving it's school bell, Secretary Lauro F. Cavazos Thursday, November 16, 1989 people. opened our annual celebration of education. It Modern diagnostic and treatment facilities, Mr. MAZZOLI. Mr. Speaker, I am pleased to is fitting that this Learning Bell should come caring rehabilitative services, the latest tech­ bring to your attention the fact that the Hous­ from the same Commonwealth that brought us nological tools, and a highly qualified, dedicat­ ing Authority of Louisville [HAL], KY, which I our Liberty Bell. ed medical staff make Mcleod Regional Med­ am privileged to serve in the U.S. Congress, Last Monday, Education Secretary Cavazos ical Center the outstanding health care facility recently received the Department of Housing in his dedication remarks said: that we are so proud of in the Pee Dee. and Urban Development [HUD] Specific Activ­ I'd like to go to every school in America I send my congratulations to Mcleod's ity Performance Award for its Home Partner­ today and put up a bell, an old-fashioned ship Program. school bell. And that bell would toll in the chairman of the board of trustees, D. Lau­ rence Mcintosh, and all of the doctors, I was honored to join Andrea Duncan, exec­ morning, and it would say, America, some­ utive director of HAL, and Mabel Wiggins, thing important is about to happen. Educa­ nurses, technicians, staff, and volunteers that tion is about to happen in your town. Send make Mcleod the special caring oasis in a chairwoman of HAL, who were in Washington, your children prepared. Come prepared to world of often unfeeling medical care. DC, earlier this month to accept the Specific study and come prepared to learn. I join them in celebrating this decade of ex­ Activity Award in behalf of HAL from HUD offi­ cial, Joe Schiff, another Louisvillian. It gives me great pleasure to thank the cellence, but also in looking forward to a The Specific Activity Award is presented to alumni of Milford High School for the donation bright future in the next decade with Mcleod Public Housing Authorities [PHAs] which, of the bell which called generations to school. Medical Center leading the way in health care through the management of their projects, May it always serve to remind us of how cen­ services. have made outstanding contributions to the tral learning is to our liberty. improvement of the quality of life for public DENVER BRONCOS: A WINNING housing residents, and HAL was the only re­ ANNIVERSARY OF McLEOD TRADITION cipient chosen from 62 applications nation­ REGIONAL MEDICAL CENTER wide. HON. JOEL HEFLEY The Home Partnership Program, for which HON. ROBIN TALLON OF COLORADO HAL was recognized, is a unique public-pri­ OF SOUTH CAROLINA IN THE HOUSE OF REPRESENTATIVES vate partnership between HAL, the Louisville Housing Department Corp., and Liberty Na­ IN THE HOUSE OF REPRESENTATIVES Thursday, November 16, 1989 tional Bank & Trust to provide affordable Thursday, November 16, 1989 Mr. HEFLEY. Mr. Speaker, 1 rise today to housing to low-income, first-time homebuyers. Mr. TALLON. Mr. Speaker, November 16 pay tribute to the Denver Bronco football team Without the aid of Federal funding, the Part­ will mark an important anniversary in Flor- as they challenge the Washington Redskins nership Program made available 36 condomin­ ence, SC. Mcleod Regional Medical Center on November 20, 1989. iums-ranging in price from $32,000-$37,000 November 16, 1989 EXTENSIONS OF REMARKS 29635 per unit-to first-time buyers whose average service is not a choice but rather a civic re­ can Ex-prisoners of War and the Defenders income was $12,500 and provides a supple­ sponsibility we should perform for the better­ and Bataan and Corregidor. Art was an out­ ment to the $320/month mortgage payment ment of both Rhode Island and our Nation. spoken frontrunner in the call to improve ben­ for which the owners are responsible. As one of the early families of Rhode efits for veterans. I remember most particular­ Andrea and Mabel are to be commended Island, the Goddards have demonstrated ly his testimony in which he advocated so for their hard work and leadership. Our com­ throughout the history of the State a complete strongly for prisoners of war. munity-and specifically, public housing resi­ and unparalleled dedication to their communi­ As we continue in our efforts to improve the dents-have benefited from their efforts, and 1 ty. They have set examples not only as spirit­ quality of services to our veterans, let's re­ look forward to working with them and their ed individuals but as a strong family. They member Art and his significant contribution in colleagues in the days ahead. have addressed and been committed to broad this regard. He touched many, many lives. areas of interest including the fields of art, INTRODUCTION OF THE NA­ education, health care and the environment to mention just a few. MARINE CORPS PROVIDES TIONAL ENVIRONMENTAL EDU­ HURRICANE ASSISTANCE CATION ACT The head of the Goddard family, Mr. Robert Goddard, personifies the ideals and values es­ tablished by his ancestors. Following his fa­ HON. JOHN P. MURTHA HON. GEORGE MILLER ther's commitment as a community leader in OF PENNSYLVANIA OF CALIFORNIA business and civic affairs, Robert has contin­ IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES ued the standard for his family inspiring them Thursday, November 16, 1989 Thursday, November 16, 1989 and other Rhode Islanders to become activ­ Mr. MURTHA. Mr. Speaker, although it is no Mr. MILLER of California. Mr. Speaker, ists. A former member of the Providence City longer making headlines, the devastation today, I am introducing the National Environ­ Council and active in political campaigns; caused by Hurricane Hugo in the Caribbean mental Education Act. I am pleased that 39 Robert has ensured that we keep a govern­ and South Carolina is still causing great suf­ Members have joined me in cosponsoring this ment which is representative of and for the fering in those areas. This suffering might bill. An identical bill, S. 1076, has been intro­ people. have been much greater had it not been for duced by Senators BURDICK, MITCHELL, Hope Goddard has given of herself for the the efforts of the U.S. Marines in providing as­ CHAFEE, and 24 other Senators. improvement of education and art in Rhode sistance in the wake of the hurricane. The purpose of this bill is to increase the Island while striving to instill in her children an Over 1,000 active duty marines and more public understanding of the natural environ­ appreciation of the arts and their obligation to than 450 pieces of equipment were committed ment and to advance and develop environ­ support them. It is largely due to the efforts of to the Hurricane Hugo relief effort. Marines mental education and training. this extraordinary woman that Providence has assisted in road clearing, potable water pro­ The bill will create an Office of Environmen­ become one of the leading cultural centers in duction, and electrical power support to the tal Education within the Environmental Protec­ our country. Her devotion is a tribute to her communities of Summerville, McClellanville, tion Agency; establish programs to prepare love for creative expression and her fellow and Moncks' Corner, SC. Marine Corps gen­ teaching materials and train teachers; provide citizens. erators provided power for emergency shel­ grants to local education agencies, colleges, I would like to thank and congratulate this ters and life-support equipment at area hospi­ and universities, for the development of envi­ unique family upon their selection as honor­ tals. Marine Corps helicopters shuttled resi­ ronmental education programs; and establish ees on National Philanthropy Day. The God­ dents of the barrier islands to assess damage awards to recognize excellence in environ­ dard family understands clearly that although one must make a living, it is far more impor­ to their homes. Marine Corps resources were mental education. also used to reestablish air control capability Next April marks the 20th anniversary of tant to make a difference. They typify the true American dream-that we must each strive to at Roosevelt Roads Naval Air Station in Earth Day. Since the first Earth Day in 1970, Puerto Rico, and marines assisted in relief ef­ much headway has been made in efforts to make the world not necessarily perfect, but forts on the island. protect the environment. However, many of better as a result of our lives and our efforts. It has always been one of the outstanding the environmental issues that face us today­ features of American society that we come to and will face us in the future-have become ARTHUR A. BRESS! the aid of those in need. It is indeed fortunate extremely complex and technical. Finding that the victims of Hurricane Hugo were able workable solutions to these issues is very diffi­ HON. JOHN P. HAMMERSCHMIDT to turn to the Marine Corps, among many cult, but finding those solutions is critical if we others, in their hours of need. I would like to are to enjoy a healthy and liveable environ­ OF ARKANSAS IN THE HOUSE OF REPRESENTATIVES congratulate the marines involved in the relief ment. efforts in South Carolina and Puerto Rico for a Establishing a National Environmental Edu­ Thursday, November 16, 1989 job well done. cation Program will prepare tomorrow's lead­ Mr. HAMMERSCHMIDT. Mr. Speaker, on ers to effectively respond to inceasingly com­ Veterans Day our country lost a veteran of plex national and global environmental prob­ great eminence. Mr. Arthur A. Bressi, a totally HUD REFORM lems. disabled former prisoner of war, was a friend I look forward to working with my col­ and a leader of the veteran. He died on No­ HON. JIM BUNNING leagues in the House to pass this legislation in vember 11, 1969, after had had been stricken OF KENTUCKY time to commemorate Earth Day 1990 and to with a stroke and massive coronary. And, we IN THE HOUSE OF REPRESENTATIVES establish this important program. shall all miss him. Art grew up in Pennsylvania, graduating Thursday, November 16, 1989 TRIBUTE TO THE GODDARD from Marion High School in 1936. After joining Mr. BUNNING. Mr. Speaker, it is always re­ FAMILY the Army, he was sent to Corregidor, the Phil­ freshing to see the Congress and the adminis­ ippines, where he was assigned to the 60th tration act cooperatively and quickly in re­ HON. RONALD K. MACHTLEY Coast Artillery. He was active in the defense sponse to a critical situation. Such is the case of Corregidor until its fall in 1942. Art was a with H.R. 1, the Department of Housing and OF RHODE ISLAND prisoner of war for over 3 years, until the war Urban Development Reform Act of 1969. IN THE HOUSE OF REPRESENTATIVES ended. The news accounts of the fraud, abuse, and Thursday, November 16, 1989 Thereafter, Art worked in Army Intelligence mismanagement at the Department of Hous­ Mr. MACHTLEY. Mr. Speaker, I rise today until his retirement from the service. He sub­ ing and Urban Development [HUD] this past to pay special tribute to a family who has re­ sequently was employed with the Department year plagued the agency like a swarm of lo­ defined the concept of philanthropy. Through of the Navy and the Commonwealth of Penn­ custs. Through the early months of the year, their uncommon and selfless generosity, the sylvania and also volunteered much of his we couldn't pick up the paper without reading Goddard family has proven that community time for veterans causes, including the Ameri- some new account of influence peddling, foul- 29636 EXTENSIONS OF REMARKS November 16, 1989 ups, or outright fraud. It was clear that the stituent of mine who served for more than 20 And yesterday, this great statesman and pa­ new Secretary of HUD, Jack Kemp, had his years as county attorney of Fulton County, triot stood before this body at another cross­ hands full. died Monday at age 75 at Jackson-Madison road in the history of freedom and democracy. Fortunately our new Secretary was up to County Hospital in Jackson, TN. He fervently asked that the United States and the challenge. Secretary Kemp seized control Jim Amberg, a highly respected lawyer who our allies not abandon Poland again just as of the situation, opened the doors at HUD so assisted many thousands of western Kentuck­ the seedlings of democracy need nourishment that we could also see the problems and sent ians, began his law practice in 1938 with his to survive. us a reform package to clean up the prob­ father, the late Will Amberg. After the war, Poland made a passionate lems. For many years, Jim Amberg and his young­ plea for help to the United States. Instead of The Housing Subcommittee then took that er brother, Brantley Amberg, worked together being welcomed into the community of free package and rather than holding the plan as a in the Hickman law firm of Amberg & Amberg. nations, they were turned over to Communist political hostage, acted on it swiftly and Because Jim and Brantley Amberg's mother rule and shut out of the Marshall plan which moved it to the floor for immediate consider­ was Charlotte Hubbard prior to her marriage was used by Western Europe to create new ation. to Will Amberg years ago, Jim, Brantley and I and prosperous societies. The plan itself is a well-thought-out effort to discussed if we were kin. Tracing the Hubbard Let the Congress of the United States today restore the concept of housing "for the needy, family tree, we agreed we probably were/ are make an investment in a new, prosperous, not the greedy" as the top priority at HUD. distantly related. and free Poland. The financial costs are few­ The premise of the bill is that all housing as­ This afternoon at 2 p.m. funeral services are the dividends are immeasurable. sistance should be determined only on the being held for Jim Amberg at Hickman's First Yesterday, a man stood before us who has basis of need. It contains ethics reform as United Methodist Church, where he was an literally changed the world. Today, let us now well as program reform. active member. help that man, his people, and the nation of In particular, the bill allows greater scrutiny Burial will be in the Hubbard family ceme­ Poland change the face of Eastern Europe of HUD and its private-sector partners and tery in Hickman. and the world forever. Let us move into a 21st greatly restricts the ability of lobbyists to influ­ Survivors include his lovely and talented century of peace. ence HUD decisions. It imposes new external wife Barbara Kettler Amberg; two sons, Jimmy monitoring requirements on the department Amberg of Union City, TN, and Jack Amberg and enhances the agency's ability to identify of Jackson, MS; a daughter, Jane Woellner of EL SALVADOR and punish wrongdoers. Bath, NH; four brothers, Bill Amberg, Jr., of Secretary Kemp and this body should be Benton, Gus Amberg and Brantley Amberg, HON. NANCY PELOSI proud of the job they did to get this bill to the both of Hickman, and Charles Amberg of OF CALIFORNIA floor for a vote. Tampa, FL, and six grandchildren. IN THE HOUSE OF REPRESENTATIVES My wife Carol and I extend to Barbara and Thursday, November 16, 1989 all the Amberg family our sympathy. RENOVATION AND RESTORA­ Ms. PELOSI. Mr. Speaker, earlier this morn­ TION OF ST. PETER'S CHURCH ing, we received news that six Jesuits in San TRIBUTE TO LECH W ALESA Salvador were assassinated as they walked HON. RICHARDT. SCHULZE into their homes. These noble and dedicated OF PENNSYLVANIA HON. men, who were fighting a daily struggle to im­ IN THE HOUSE OF REPRESENTATIVES OF OHIO prove the lives of Salvadorans, are some of Thursday, November 16, 1989 IN THE HOUSE OF REPRESENTATIVES the latest casualties of the tragic escalation in the war in El Salvador. Mr. SCHULZE. Mr. Speaker, on November Thursday, November 16, 1989 Our colleague, Congressman JoE MOAKLEY, 26, the congregation of St. Peter's Church in Ms. KAPTUR. Mr. Speaker, yesterday morn­ is circulating a telegram to the FMLN and the Great Valley, PA, celebrates the dedication of ing, a patriot in the same tradition of our Salvadoran Government appealing to them to their church's renovation, restoration, and new Adams and Jefferson and Washington stood allow for the evacuation of the wounded, to construction. Presiding at the dedication will before the U.S. Congress and told the Ameri­ allow civilians out of conflictive zones, and to be the suffragan bishop of Pennsylvania, Rev. can people and the Congressmen and Sena­ resume immediately highest level negotiations Franklin Turner. tors assembled of that fateful day in 1981 toward a ceasefire and a political settlement Founded as a log church in 1700, St. when a fired electrician climbed a fence in to the 10-year-old war. I urge all of my col­ Peter's Church constructed its present stone Gdansk and started a movement that has leagues to sign on to this telegram. building between 1728 and 17 44. It is listed changed the world. Like our "shot heard Mr. Speaker, the situation in El Salvador is on the National Register of Historic Places, is round the world," Lech Walesa actions that getting worse by the hour. We must take one of the original parishes in the diocese of day and for the last 8 years are bringing down action to pressure both of the parties in the Pennsylvania and is the oldest Episcopal the Iron Curtain separating East and West, conflict to stop the bombing and to stop the Church in Chester County, PA. like the crumbling walls of Jericho. killing. The six Jesuits recently assassinated During the American Revolution, the church In Mr. Walesa's fervent plea for help, he dedicated their lives to seeking peace. We served as a hospital for American and British told a moving tale of the bravery and persist­ must continue their work. Thank you. troops. Veterans of every American war are ence of the Polish people in the face of over­ buried in St. Peter's Cemetery. whelming adversity. A devoted and committed It is, indeed, a historic landmark in Chester ally during World War II, Poland fought the COMMENDS FADA PRESIDENT County worthy of preservation, and I congratu­ longest, was present in great numbers in all JOHN WILLS AND HIS STAFF late the rector, Rev. Frank Harron, and the the war's theaters, and lost 6 million of its entire congregation for their tremendous suc­ countrymen to help achieve the victorious ally HON. C. THOMAS McMILLEN cess. outcome. OF MARYLAND But when the time came for rewarding IN THE HOUSE OF REPRESENTATIVES Poland for its efforts, the Polish people were A TRIBUTE TO JAMES HUBBARD Thursday, November 16, 1989 AMBERG abandoned. For their efforts and immense sacrifices Mr. McMILLEN of Maryland. Mr. Speaker, HON. CARROLL HUBBARD, JR. during the war, the Polish people were re­ today I rise to clarify some comments I made warded with a political system completely during a recent hearing conducted by the OF KENTUCKY alien to anything they had ever known and an Resolution Trust Corporation [RTC] Task IN THE HOUSE OF REPRESENTATIVES ineffective economic structure. It rewarded in­ Force regarding the Federal Asset Disposition Thursday, November 16, 1989 efficiency and corrupt Government officials. Association [FADA]. Mr. HUBBARD. Mr. Speaker, James Hub­ For over 40 years, Poland has struggled with Representative PAUL KANJORSKI and myself bard Amberg, a Hickman, KY, friend and con- the legacy of promises broken at Yalta. have fought for the elimination of FADA for November 16, 1989 EXTENSIONS OF REMARKS 29637 the last couple of years. We did so because The dilemma created by this concentra­ "As an ordinary citizen, I find it outra­ we felt FADA was not an efficient way to dis­ tion of power is that the independence geous that Volcker and now Greenspan pose of the billions in troubled thrift assets which the Federal Reserve must have in have such dictatorial power over my life and held by the Federal Savings and Loan Insur­ order to insulate monetary policy from po­ those of other hard working citizens. Where litical pressures also removes the Fed from are the checks and balances intended by our ance Corporation [FSLIC]. It was our opinion the normal processes of accountability that Constitution?" that FADA went way beyond what it was origi­ apply to every other agency of the federal As applied to the Fed, this is not an easy nally intended to do, and that the private government. Our bill, H.R. 3512, addresses a question to answer. The bill that Congress­ sector would be better able to manage the very difficult and perplexing problem-how man Dorgan and I have introduced is an at­ assets of troubled savings and loans and to to make the Federal Reserve more account­ tempt to address this very complex issue of attain a higher rate of return on those assets. able to the American people without jeop­ Federal Reserve accountability. Before de­ I still believe this to be true. ardizing its independence and its ability to scribing what the bill will do, let me briefly However, I would like to take this opportuni­ conduct monetary policy free of political tell what it will not do. pressure. ty to commend current FADA president John First, it will not cause revolutionary When Congress and the President make changes at the Federal Reserve. It is a very Wills and his staff for the extraordinary efforts policy, we do it in the open. The debates in modest bill designed to improve some of the they have made in reforming FADA and re­ both the House of Representatives and the Federal Reserve's practices and procedures. turning it to its original purpose. While I still Senate are televised live throughout the In the 75 years since Congress created the believe it is necessary to eliminate FADA, it is country. The decisions we make are immedi­ Federal Reserve System, we have made a my opinion that Mr. Wills has done an excel­ ately reported to the American people; number of changes in its structure and pro­ lent job as president, and is certainly a step every penny the government spends shows cedures, adding responsibilities and powers above his predecessors at FADA. John Wills up in the Budget documents of the U.S. from time to time and periodically revising Government and this information is readily its relationship with Congress and the Ad­ has made every effort to work with this available to any interested Member of Con­ Member and I wanted him to know that I ap­ ministration. Our bill continues this process gress or the public; and the books and pro­ by proposing a handful of evolutionary preciated those efforts. I am confident that he grams of very government agency are sub­ changes in the practices and structure of will be successful in any endeavor he pursues, ject to audit and review by the General Ac­ the Federal Reserve. and I hope that I will have the opportunity to counting Office. These are the accepted Second, our bill will not reduce the policy­ continue to seek his advice on the enormous rules of accountability in a democracy. If making independence of the Fed or inject and difficult task of resolving the savings and the citizens of the country are dissatisified politics into monetary policy. The bill does loan crisis. with the results, either with the policies not impose Presidential or Congressional or themselves or the way they are carried out other outside controls on Fed policy. by government agencies, they know to Our bill, instead, aims to make the Feder­ FEDERAL RESERVE REFORM whom to complain and how to register their al Reserve more acountable to the American preferences. ACT OF 1989 people, not by giving politicians control but But these rules do not apply to the Feder­ by creating a formal channel of communica­ al Reserve. The Fed is independent of the tion between the President and the Federal HON. LEE H. HAMILTON rest of the government. It was purposely Reserve, and by providing Congress and the OF INDIANA created that way to insulate monetary American people with more and better in­ policy from political pressures. No other IN THE HOUSE OF REPRESENTATIVES formation on the Federal Reserve's policies government agency enjoys the Fed's prerog­ and procedures. Thursday, November 16, 1989 atives. Monetary policy is conducted in The bill has five major provisions. secret, behind closed doors. The Federal Re­ Mr. HAMIL TON. Mr. Speaker, on Thursday, serve is not required to consult with Con­ I. CONSULTATION WITH THE ADMINISTRATION November 9, I testified before the Subcommit­ gress or the Administration before setting First, it would require the Secretary of tee on Domestic Monetary Policy on H.R. money or interest rate targets, even though the Treasury, the Chairman of the Council 3512, the Federal Reserve Reform Act of its power affects every American. It waits of Economic Advisers, and the Director of 1989. My statement follows: six weeks before releasing policy decisions. the Office of Management and Budget to Mr. Chairman and Members of the Sub­ The President, who is responsible for the meet three times a year on a non-voting committee, I am very pleased to have this performance of the economy and is blamed basis with the Federal Open Market Com­ opportunity to testify on H.R. 3512, the if things go wrong, often must wait until mittee, to consult on monetary and fiscal Federal Reserve Reform Act of 1989. late in his term to appoint a new Chairman policy. Since Congressman Dorgan and I original­ of the Federal Reserve Board, raising the Two of the required meetings would take ly introduced this legislation in June, our risk that the President and the Federal Re­ place just before the FOMC sets its annual bill has stimulated a thoughtful discussion serve Board Chairman might be at odds. money growth targets in February and July among the American people about the Fed­ President Bush, for example, will not be and reports to Congress, as required by the eral Reserve and its proper role in American able to appoint a Fed Chairman until Full Employment and Balanced Growth Act society. In response to the many very help­ August 1991. The Fed's budget is not pub­ of 1978. The third meeting would occur in ful comments we received, Congressman lished in the U.S. Government Budget, even the fall at the start of the Administration's Dorgan and I recently revised the bill and though it spends over $1.5 billion per year. annual budget cycle. These meetings will reintroduced it. Only 6 percent of Federal Reserve expendi­ bring together the key members of the The Federal Reserve occupies an anoma­ tures are detailed in the U.S. Government fiscal and monetary policymaking teams. lous position within the government of the Budget-the $90 million spent by the Board The purpose of the meetings is to improve United States. It is an enormously powerful of Governors-and this appears only in the the flow of information between the Admin­ institution, but it does not conform to the appendix and not in standard government istration and the Federal Reserve. Current­ normal standards of government account­ format. The Presidents of the 12 Federal ly, there is no formal channel of communi­ ability. Power without accountability simply Reserve Bank, who participate in monetary cation between the President and the Fed. does not fit into the American system of de­ policy decisions on the FOMC, are neither At times, the Administration is reduced to mocracy. appointed by the President nor confirmed carrying on policy disputes by publicly snip­ Through its control over monetary the by the Senate. Even though the Federal Re­ ing at the Fed through the press. Under our Federal Reserve affects the lives of all serve engages in more than $1 trillion in bill, the Administration will have a formal Americans. It has the power to decide who transactions in the money markets each avenue to present its program for the econo­ prospers and who fails. The path that the year, most of these activities are exempt my to the FOMC and lay out its goals and Federal Reserve sets for monetary policy from audit by the GAO or any other outside targets for monetary policy. The Members and interest rates affects every business­ agency. of the FOMC will also have an avenue to person, worker, consumer, borrower and My constituents in the Indiana district I convey their concerns about fiscal policy to lender in the United States. With fiscal represent in Congress understand that the the Administration. Communication will policy paralyzed by the inability of the Con­ Federal Reserve has a powerful impact on flow both ways. gress and the Administration to agree on their lives. But they express frustration In his testimony before this Subcommit­ ways to reduce the Federal deficit, the Fed­ over how the Fed operates and how they tee on October 25, Federal Reserve Board eral Reserve by default must make the deci­ can communicate with it. I would like it. I Chairman Alan Greenspan opposed this sions by which the government exercises its would like to quote from one letter I recent­ provision on the grounds that the Federal responsibility for the overall performance of ly received, which summaries the concern of Reserve and the Administration already the economy. many Americans: communicate through informal channels 29638 EXTENSIONS OF REMARKS November 16, 1989 and that the more formal arrangement pro­ risk of miscommunication and public snip­ should be related to the President's term of posed by our bill would result in political ing by establishing a fornal channel by office and that a new President should be manipulation of monetary policy. which the FOMC and the Administration able to appoint a Chairman of his own Informal channels of communication do can discuss the needs of the economy and choice. In response to a 1968 question from exist; for example, the current Fed Chair­ the appropriate combination of monetary Banking Committee Chairman Wright man and Treasury Secretary are reported to and fiscal policy. Patman, Chairman Martin reaffirmed the meet about once a week. Over the years, II. TERM OF THE FEDERAL RESERVE CHAIRMAN Board's position. Chairman Arthur Burns however, the success of informal methods Second, our bill would allow the President was of two minds on the question of coter­ has varied, depending on the personalities to appoint a Chairman of the Federal Re­ minous terms. In a 1977 hearing before the involved. In addition, the discussions are off serve Board one year after taking office, at Burns opposed legislation tying the Federal hand to other members of the FOMC. This the time when the first regular opening Reserve Board Chairman's term to the ad hoc approach to making decisions which would occur on the Federal Reserve Board. President's. During the hearing, however, affect the economic well-being of all Ameri­ This would make the Fed Chairman's term he gave the following response to a question cans is not the best way for a great econom­ basically coterminous with the term of from Congressman Parren Mitchell: ic power to conduct its business. It is aston­ office of the President of the United States. "I do not mind reporting to you that I ishing that the world's greatest economic The current Chairman of the Board of have changed my mind. Last year in connec­ power does not have a formal channel of Governors, Alan Greenspan, was appointed tion with a bill that the Congress was then communication between the key makers of by President Bush's predecessor and will considering, I reported to the Congress that economic policy. Our bill would establish a hold that office until August 10, 1991, the Board had no objection to a roughly co­ channel of communication that would not almost three years into President Bush's terminous term. Since then we have consid­ depend on personalities for success. term. Fortunately, Chairman Greenspan ered this issue again within the Board. I It is interesting to note that the Fed is al­ and President Bush have a cordial relation­ have given it a good deal of thought, and I ready required to conduct formal advisory ship. The fact that Mr. Greenspan was not do not find it an easy question. At present a meetings of the kind we propose with a appointed by President Bush has not caused clear majority of the Board favors the posi­ number of outside groups. One is the Feder­ any significant problems with monetary tion that I have taken." al Advisory Council, which is composed of policy. But if they were unable to work to­ Former Federal Reserve Board Chairman 12 major private-sector bank presidents (one gether, the result could be serious damage Paul Volcker also supported the change in from each Federal Reserve district) and to the American economy and a paralysis of the Chairman's term that our bill would which meets four times a year with the economic policy. Why take that risk? make, in testimony before the Democratic Board of Governors. At the latest meeting, Our bill would address this by having the Monetary Policy Subcommittee on October on September 8, 1989, the private bank President appoint the Fed Chairman to a 18, 1983. In his prepared statement, Chair­ presidents presented their complaints four-year term beginning one year after man Volcker said: against current tax treatment of credit taking office, when there will be a new va­ "The Board believes there is merit in pro­ unions and discussed the impact of current cancy on the Board in any event. Each ap­ viding for a consistent relationship between economic policies on the U.S. trade balance. pointee will still be subject to Senate confir­ the term of the Chairman of the Fedreal Meetings also occur three times a year mation, as under current law. Giving the Reserve with the term of the President. At with the Consumer Advisory Council, which President three years of a term with a Fed­ present, the beginning of a Chairman's term focuses on financial matters of importance eral Reserve Chairman of his own choosing is an accident of history-a product of the to consumers, and the Thrift Institutions is surely preferable to the possibility under timing of previous appointments, resigna­ Advisory Council, which focuses on matters current law of lengthy period where the tions, and expirations of the term of a of interest to thrifts. The Consumer Adviso­ President and Chairman cannot work to­ Chairman as a Member of the Board of ry Council, and the requirement for periodic gether. Governors. The principal problem with the meetings with the Federal Reserve, was es­ Chairman Greenspan testified that link­ present arrangement is that a new four-year tablished in 1976 by an amendment to the ing the Chairman's term to the President's appointment might be required late in a Equal Credit Opportunity Act, in the same could result in less independence from the Presidential term or in the midst of, or kind of modest change in Federal Reserve White House than currently exists. To the shortly after, a contentious political cam­ practices that would be made in our bill. contrary, the provision in our bill would not paign, tending to bring the choice into the The Fed does not object to meeting regu­ increase the President's influence over the heat of a political contest. larly with bank presidents, consumer repre­ Federal Reserve. A Fed Chairman who was "It is difficult to argue that there is a sentatives and the thrift industry to discuss appointed a year after the President took single optimal alignment of the two terms, issues of importance to these groups. Why office and knew he would not come up for but among the possibilities there is a sound not accord representatives of the President reappointment during the President's term basis for making the four-year term of the of the United States the same privilege to would have much more independence than Chairman begin on February 1 of the year discuss issues of importance to the whole one, such as Chairman Greenspan, who after the President's term of office com­ nation? must conduct policy to please President mences. Such an alignment would permit a Contrary to Chairman Greenspan's fears, Bush if he wants to be reappointed Chair­ President to nominate a Chairman relative­ three FOMC meetings a year with the Ad­ man when his term expires in 1991. In addi­ ly early in his term, but at a point in time ministration's top economic advisers will not tion, over the years, some Chairmen have somewhat removed from the series of politi­ empower the President to meddle with mon­ been appointed soon after the President cal appointments required at the very start etary policy. The required meetings would took office with no detrimental effects. of a new Administration. Continuity at the occur before actual FOMC meetings. No Chairman Greenspan's further objection central bank in the midst of a transition of Member of the Administration would be that it would be difficult to find a qualified administrations would be especially desira­ present when the FOMC makes monetary person to fill out the remaining term of a ble." policy decisions and none would have a vote Chairman who leaves office ignores that on the FOMC. The format of the meetings fact that the Chairman of the Board of III. DISCLOSURE OF MONETARY POLICY would be solely under the control of the Governors is a highly visible post with great DECISIONS participants. Furthermore, given the Feder­ power and prestige. There would be no Third, our bill would require the FOMC to al Reserve's current concern for its inde­ shortage of qualified applicants. In addition, disclose immediately any changes in the tar­ pendence, any attempt by the Administra­ a "temporary" Chairman would still have gets of monetary policy, including its tar­ tion to meddle in monetary policy would the rest of a 14-year term to serve on the gets for monetary aggregates, credit aggre­ and should evoke a strong reaction from the Board of Governors even if he were not gates, prices, interest rates, or bank re­ Members of the FOMC. If Chairman Green­ reappointed to the next full Chairman's serves. span raised this issue because he fears that term. The FOMC currently keeps major policy the President, through his three representa­ As Chairman Greenspan testified, the decisions secret for six weeks after they are tives, could successfully dictate monetary Federal Reserve's position on this issue has made and carried out. Most other govern­ policy, his words cast a dark cloud over the varied over the years. In a letter dated Octo­ ment agencies must not only publish deci­ independence of the members of the FOMC. ber 6, 1966, to Congressman Abraham sions in the Federal Register before they The bill that Rep. Dorgan and I intro­ Multer, who was then Chairman of the can take effect, most in fact must publish duced will not eliminate policy mistakes at Banking Committee's Subcommittee on proposed decisions for public comment the Federal Reserve, or mistakes in fiscal Bank Supervision and Insurance, Federal before they can even be issued in final form. policy. There will invariably be successes Reserve Board Chairman William McChes­ While secrecy may help insulate the Fed­ and failures under any set of structures or ney Martin said the Board believed that the eral Reserve from criticism, secrecy has two procedures. What it will do is reduce the terms of the Chairman and Vice Chairman economic costs. November 16, 1989 EXTENSIONS OF REMARKS 29639 First, secrecy makes capital markets oper­ grounds that its funds were not appropri­ Chairman Greenspan's concern that GAO ate less efficiently. The Federal Reserve's ated by Congress. In 1978, the Federal audits would inhibit FOMC deliberations position on this can be defended only if you Banking Agency Audit Act authorized the confuses access to information with disclo­ believe that ignorance is better than knowl­ GAO to audit the bank regulatory agencies, sure. There are many instances where GAO edge. But one of the major conclusions of allowing full audits of the Comptroller of has access to information that it cannot microeconomic theory is that thorough and the Currency and the Federal Deposit In­ publicly disclose. For example, in its audits complete information is a requirement for surance Co:r:poration and limited audits of of banks and other financial institutions, markets to work efficiently. This applies to the Federal Reserve. Since then, the GAO the GAO is prohibited from disclosing "in­ financial markets as well as to markets for has conducted numerous audits of the Fed's formation identifying an open bank, an goods and services. regulatory activities, with no noticeable open bank holding company, or a customer Second, secrecy is unfair to small inves­ harm to the Federal Reserve or its effective­ of an open or closed bank or bank holding tors. When the Federal Reserve makes a ness in regulating member banks. company." In carrying out these audits, policy change, large investors and Wall Currently, the GAO is prohibited access however, the GAO has access to "all kinds Street market experts generally find out to any Federal Reserve function involving and property of or used by an appropriate early enough through experts who monitor (1) transactions with a foreign central bank Federal banking agency, including samples the Federal Reserve. This gives them an ad­ or foreign government, (2) any deliberations of reports of examinations . . . and work­ vantage over small investors, borrowers, and or actions on monetary policy matters or <3> papers and correspondence related to the others who don't have resources, to employ any transactions made under the direction reports." The GAO also has access to the fi­ "Fed/watchers" to interpret and anticipate of the FOMC. H.R. 3512 would remove the nances of the President and Vice President Fed policy changes. last two restrictions while retaining the re­ The solution is immediate release of Fed­ of the United States. When it audits any striction against GAO access to transactions part of these records, however, it is prohibit­ eral Reserve policy decisions, as our bill with foreign central banks or foreign gov­ would require. This is a change that is ed from disclosing its findings, unless they ernments. involve criminal activity. If needed, our bill widely supported by economists and partici­ In his October 15 testimony, Chairman pants in financial markets. could be adjusted to include similar provi­ Greenspan protested that GAO audits sions. In his testimony, Chairman Greenspan would duplicate functions that are already argued that immediate release would impair performed, including financial audits by the V. FEDERAL RESERVE BUDGET the Federal Reserve's flexibility to react Federal Reserve itself and Congressional The final provision of our bill would re­ quickly in times of acute financial unrest oversight of monetary policy, and would quire that the Federal Reserve's annual and could result in increased instability in stifle free discussion of policy alternatives budget be published in the Budget of the financial markets if investors overreact to by the members of the FOMC. U.S. Government. The Fed would submit its particular announcements. Although the Board of Governors does budget for the current year and the two fol­ Our bill does not require the Federal Re­ currently conduct a thorough financial ex­ lowing years to the President by October 16 serve to announce every day-to-day move it amination of each of the Federal Reserve of each year, and the President would be re­ makes in conducting monetary policy. It re­ Banks through its operations review pro­ quired to print the Fed's budget in the Gov­ quires only that the Federal Reserve release gram, and the Board of Governors is audit­ ernment Budget without change. changes in intermediate targets-that is, the ed by Price-Waterhouse, these examinations The Federal Reserve's expenditures are targets set during the periodic meetings of do not result in certified financial state­ not subject to approval by either the Presi­ the FOMC. In practice, this would require ments of the kind auditors would prepare dent or Congress, unlike the budgets of immediate release of the FOMC's directive for a private bank or corporation. While other government agencies. While the to the open market desk of the New York GAO audits of the Federal Reserve's finan­ Board of Governors reviews and approves Federal Reserve Bank, plus any other major cial condition might overlap the Federal Re­ the annual budgets of the 12 Federal Re­ policy changes that the FOMC agrees to be­ serve's own efforts, every government serve Banks, the Board determines its own tween formal meetings. The Fed would still agency that takes in and spends billions of budget. be able to operate day-to-day under the dollars each year ought to be subject peri­ During 1989, the revenues of the Federal same rules it currently follows and would odically to outside review. We are not accus­ Reserve System will be about $20 billion. A still be able to react quickly to market ing the Federal Reserve of dishonesty, we small fraction of these revenues will consist crises. just believe the GAO should have more of payments by banks for services provided The possibility raised by Chairman Green­ complete access to the Federal Reserve's fi­ by the Fed. Most will consist of interest re­ span that immediate disclosure would cause nancial statements. ceived from the Treasury on the Fed's hold­ financial market instability ignores the fact What the Federal Reserve does not do ing of U.S. Government securities, which that it is ignorance, and not knowledge, under current practice is subject its prac­ the Fed acquired during open market oper­ about Federal Reserve decisions which cre­ tices and procedures to outside review, and ations conducted for monetary policy pur­ ates the kinds of rumors that are unsettling this is where GAO audits could be even poses. Out of this $20 billion, paid mostly by to the financial markets and cause wide gy­ more valuable. Congressional oversight of taxpayers, the Federal Reserve will incur rations in bond and stock prices. complex issues benefits greatly from the approximately $1.6 billion in operating ex­ Rather than waiting six weeks before dis­ kind of in-depth examination that can be penses. Almost $1 billion of this will be for closing its intermediate targets, as the Fed conducted only by the GAO. It is true that personnel costs. The rest will be for sup­ now does, its decisions should be released Congress holds frequent hearings on mone­ plies, travel expenses, telephones and post­ immediately. This would improve the effi­ tary policy, and this subcommittee holds age, printing money, maintenance of equip­ ciency of financial markets, reduce instabil­ valuable annual hearings on the Federal Re­ ment, amortization of buildings, etc. The re­ ity, and provide all investors, large and serve's budget. But complex issues should mainder will be returned to the Treasury, small, with equal and timely information not be left solely to hearings. The Congres­ where it is listed in the Budget as an offset­ about monetary policy decisions. sional oversight responsibility is better car­ ting receipt. IV. GAO AUDITS ried out if it is better informed through Despite the fact that the Federal Reserve Fourth, our bill would permit the Comp­ studies that are analytic, independent, and takes in and spends billions of dollars each troller General to conduct more thorough based on full information. year, the Federal Reserve's budget is not audits of Federal Reserve operations, by re­ By way of example, questions GAO could conveniently available to Congress or the moving selected current restrictions on address that would not be possible under public. Only a small fraction of the Fed's GAO access to the Federal Reserve. current restrictions include: $1.6 billion of operating expenses is included The General Accounting Office is the A. What economic information do the in the U.S. Government Budget-just the watchdog of Congress. It carries out that re­ members of the FOMC have available $90 million of expenses incurred by the sponsibility through financial and program during FOMC meetings? Is it presented in Board of Governors in Washington. The de­ audits of government agencies. These audits the most useful format? What other kinds tails on this part of the Fed's budget, only 6 are of tremendous value to Congress. Not of information should be available? percent of the Federal Reserve's total only do they ferret out waste, fraud and B. What are the costs associated with the spending, appear in Part IV of the Budget abuse, they perform the even more impor­ Federal Reserve's purchases and sales of se­ Appendix, in a section entited "Govern­ tant function of telling Congress when pro­ curities for open market operations? Is the ment-Sponsored Enterprises." grams are not working and where programs Fed doing this efficiently? Under pressure from Congress, the Feder­ can be improved. C. What are the details of Federal Reserve al Reserve began publishing budget data for For many years, from the mid-1930's to operations through the discount window to the entire System in 1986 in an annual doc­ the late 1970's, the Federal Reserve was assist failing banks and thrifts? What kind ument entitled "Annual Report: Budget exempt from GAO audits, along with the of collateral is being required, what are the Review." While this report represented an other bank regulatory agencies, on the terms and agreements? improvement over prior practice, the Feder- 29640 EXTENSIONS OF REMARKS November 16, 1989 al Reserve's annual Budget Review still has The bill will not require the Federal Re­ justments until a time of economic turbu­ three shortcomings: serve to maintain two sets of books. Al­ lence and controversy, the results may be "It is not printed together with the rest of though the Fed does not use the Federal far less measured. the data on how the government takes in fiscal year or government accounting princi­ The second obection is that Congress and and spends money and thus it does not get ples for its accounts, the Fed would not be the President are not responsible enough to the public scrutiny accorded other govern­ required to adopt them by our bill. It would have control over monetary policy, given ment agencies. be useful, but not required. We just want the mess we have made of the budget. "There are no estimates or projections of the Fed's data on its budget to be published This objection also completely misreads future expenditures. The Budget Review along with the rest of government spending only presents actual or estimated expendi­ in the Budget of the U.S. Government. H.R. 3512. There is no provision in the bill tures for the previous two calendar years Adopting the bill would thus implement a that would give Congress or the President and the budget for the current calendar basic principle of democracy that no govern­ any control over monetary policy. If some­ year. By contrast, the Government budget ment agency should take in and spend bil­ one wanted to politicize monetary policy, presents estimated expenditures for govern­ lions of dollars without having its budget our bill would not be the way to do it. This ment agencies not only for the current readily accessible to the public. bill does only two things: it removes some of fiscal year, but for the next two fiscal years These are the specific provisions of H.R. the veil of secrecy that surrounds the Feder­ in the future. 3512. al Reserve by shedding some light on its "Data on Federal Reserve receipts are pre­ Before concluding, I would like to address policies and practices; and it establishes a sented only for prior years. There is no esti­ two more general arguments used by the formal channel of communication between mate of receipts either for the current year Federal Reserve and others to oppose our the President and the FOMC. or for future years." bill. Our bill, of course, is not the only way to In his testimony. Chairman Greenspan One is, "if it ain't broke, don't fix it." This accomplish these goals, although we have argued that the Federal Reserve's function­ objection assumes that the effect on H.R. taken care to include only provisions that al independence is inseparable from its 3512 will be to force the Federal Reserve to would not interfere with the Fed's indepen­ budgetary independence and that publish­ alter its conduct of monetary policy, which dece. We would be happy to have the Sub­ ing its budget in the Government budget would harm the economy of the United would require the Fed to keep two sets of States. committee's suggestions for improvements books at the cost of millions of dollars. Nonetheless, H.R. 3512 does address a · in our bill. H.R. 3512 will not reduce the Federal Re­ problem that does need to be fixed, the In our nation, the government must be ac­ serve's control over its own budget. The bill complex problem of Federal Reserve ac­ countable to the people. The Federal Re­ would not subject the Federal Reserve to countability in a democratic society. Con­ serve, with its enormous power over the the Congressional appropriations process, gressman Dorgan and I believe the five pro­ economy and the well-being of the Ameri­ nor would it give either Congress or the Ad­ visions of our bill would do that in the most can people, does not meet the normal stand­ ministration any control over the Federal responsible way possible, without jeopardiz­ ards of accountability in a democracy. The Reserve's spending. All it does is require ing the Federal Reserve's independence or bill that Rep. Dorgan and I introduced will that the data be published conveniently in injecting politics into monetary policy. We make the Fed more accountable without im­ the U.S. Government Budget, where spend­ do not think Congress should wait until a pairing its ability to conduct monetary ing by every other government agency is al­ monetary crisis to reform the Federal Re­ policy, by establishing a formal channel of ready listed. This includes the Supreme serve. Our bill takes advantage of a period communcation between the FOMC and the Court, which has its budget published in the of high regard for the Fed, and a moment of administration and by shedding more light Government Budget without any loss of in­ economic calm, to bring Fed procedures up on its practices and procedures. dependence. to date. If we wait to make the necessary ad-