August 2, 1977 EXTENSIONS OF REMARKS 26231 poses; to the Committee on Education and By Mr. BUCHANAN (for himself, Mr. Labor. KOCH, Mr. LEDERER, Mr. LEHMAN, PRIVATE BILLS AND RESOLUTIONS By Mr. FAUNTROY: Mr. LENT, Mr. LEVITAS, Mr. LONG of Under clause 1 of rule XXII, H.J. Res. 565. Joint Resolution to amend Maryland, Mr. MITCHELL of Mary­ Mr. GOLDWATER introduced a blll (H.R. the Constitution to provide for representa­ land, Mr. MOAKLEY. Mr. MOORE, Mr. 8710) for the relief of Jane McMahon Jantzen tion of the District of Columbia in the Con­ MURPHY of Pennsylvania, Mr. OT­ gress; to the Committee on the J\\diciary. TINGER, Mr. PEASE, Mr. PRICE, Mr. and Gilbert N. Hair; which was referred to By Mr. GONZALEZ: QUIE, Mr. RANGEL, Mr. RICHMOND, the Committee on the Judiciary. H.J. Res. 566. Joint resolution proposing an Mr. RoE, Mr. RosENTHAL, Mr. SIMON, amendment to the Constit"Ltion of the Unit­ Mr. SoLARZ, Mr. STEERS, Mr. STOCK­ ed States to repeal the 25th amendment to MAN, Mr. THOMPSON, and Mr. WAX­ that Constitution; to the Committee on the MAN): PETITIONS, ETC. Judiciary. H. Con. Res. 322. Concurrent resolution Under clause 1 of rule XXII, petitions By Mr. MINETA: expressing the sense of Congress that the and papers were laid on the Clerk's desk H.J. Res. 567. Joint resolution relating to should comply with the Hel­ the publication of economic and social sta­ sinki Final Act, the International Covenant and referred as follows: tistics for Americans of East Asian or Pa­ on Civil and Political Rights, a.nd the Soviet 170. By the SPEAKER: Petition of the cific Island origin or descent; jointly, to the Constitution, with respect to all its citizens, Monroe County Legislature, N.Y., relative to Committees on Education and Labor, Post and on that basis should allow Anatoly changes in procedures and requirements re­ Oftlce and Civil Service. Shchra.nsky to emigrate from the Soviet lating to the resale of foreclosed homes; to By Mr. BUCHANAN (for himself, Mr. Union; to the Committee on International the Committee on Banking, Finance and ARCHER, Mr. BAUCUS, Mr. BEILENSON, Relations. Urban Affairs. By Mr. BUCHANAN (for himself, Mr. Mr. BEVILL, Mr. BLANCHARD, Mr. 171. Also, petition of the Boston Bar Asso­ BRODHEAD, Mr. BURKE of Florida, Mr. BENJAMIN, Mr. CONTE, Mr. WEISS, PHILLIP BURTON, Mr. CAVANAUGH, Mr. Mr. CHARLES WILSON of Texas, and ciation Council, Boston, Mass., relative to COTl'ER, Mr. COUGHLIN, Mr. DaINAN, Mr. ZEFERETTI) : creation of an independent and separate Mr. EDWARDS of California, Mr. ED­ H. Con. Res. 323. Concurrent resolution ex­ bankruptcy court; to the Committee on the WARDS of Oklahoma, Mr. En.BERG, Mr. pressing the sense of Congress that the So­ Judiciary. ERTEL, Ms. FENWICK, Mr. FRASER, Mr. viet Union should comply with the Helsinki FRENZEL, Mr. FREY, Mr. GRADISON, Final Act, the International Covenant on Ms. HOLTZMAN, Mr. JEFFORDS, and Civil and Political Rights, and the Soviet Mr. KEMP): Constitution, with respect to all its citizens, AMENDMENTS H. Con. Res. 321. Concurrent resolution and on that basis should allow Anatoly expressing the sense of Congress that the Shchransky to emigrate from the Soviet Under clause 6 of rule XXIII, proposed Soviet Union should comply with the Hel­ Union; to the Committee on International amendments were submitted as follows: sinki Final Act, the International Covenant Relations. H.R. 8444 By Mr. BURGENER: on Civil and Political Rights, and the Soviet By Mr. CUNNINGHAM: Constitution, with respect to all its citizens, H. Res. 732. Resolution urging the expe­ a.nd on that basis should allow Anatoly ditious completion o.".' the Subcommittee on On page 404, line 22, strike "20 percent" Shchransky to emigrate from the Soviet Ccmmunication's review of the Communica­ and insert in lieu thereof "100 percent", Union; to the Committee on International tions Act of 1934; to the Committee on and on page 404, line 23, after the word Relations. Interstate and Foreign Commerce. "taxpayer", insert "for materials only".

EXTENSIONS OF REMARKS SANFORD McDONNELL SPEAKS OF morning paper, you land at your destina­ equipped with new, highly efficient engines THE FUTURE ON AIR TRANSPOR­ tion. You're in Melbourne, Australia, on the capable of making lt both economically com­ other side of the world. Less than two hours petitive and acceptable to environmentalists. TATION has elapsed since you stepped out of your That we will eventually be traveltng in ad­ front door back home. vanced SSTs now seems nearly inevitable. If this sounds like science fiction, it is. Looking further ahead-to the next cen­ HON. OLIN E. TEAGUE For now. But there's as much science as fic­ tury, perhaps-we foresee the possib111ty of a OF TEXAS tion in it: it could happen, and it's just "hypersonic" aircraft that would vastly out­ IN THE HOUSE OF REPRESENTATIVES possible that you might live to see it happen. perform even the advanced SST. Tuesday, August 2, 1977 Much of the technology needed for the de­ The hypersonic transport concept devel­ velopment of global rocket transports exists oped at our company involves a plane with Mr. TEAGUE. Mr. Speaker, the most today, and much of the planning needed to eight engines. Four turbojets would ll!t it recent issue of Flying Colors the Braniff put such technology to work has already been off the ground, propel it through the sound International travel magazine carried a done by America's aerospace industry. barrier, and send it to three and a half times guest editorial by Sanford H. McDonnell, It won't happen tomorrow, of course. These the speed of sound. Then four ramjets would things do take time. But astonishing progress take over, raising the speed stlll higher. This president, McDonnell Douglas Corp., in is routine for airplane manufacturers and plane would be 475 feet long and capable of which he speculated on air transporta­ the airlines they serve (remember that the carrying 500 passengers. Though not quite tion for the future and how it will be Wright Brothers made their first flight just as fast as a global rocket transport, it could brought about by the technology of the 74 years ago), and it is likely to !"emain so for fly at 4,000 Inlles per hour. present. a long time to come. Sound incredible? Stick around. The in­ I have had the distinct pleasure of Certainly big changes lie ahead for the credible has been happening in commercial knowing both Sanford McDonnell and flying public. If some of those :::hanges prove aviation for a long time now. his father: both of whom have contrib­ to be less startling than a 45-minute tllght from the to AustraUa, they will uted greatly to the future of this country nevertheless be dramatic-and important­ through their company. I also had the in their own right. WAUCONDA, ILL., CELEBRATES ITS pleasure of lunching with Mr. McDon­ One very important possib111ty is that CENTENNIAL nell recently while at the Paris Air Show new technology wm eliminate the lingering when we discussed technology with re­ economic and environmental problems of spect .to both air and space travel. Under supersonic air travel. Most major aerospace HON. ROBERT McCLORY leave to extend my remarks I wish to firms are deeply involved in P-xploring the OF ILLINOIS include his editorial: technology for an advanced supersonic trans­ IN THE HOUSE OF REPRF.SENTATIVES port, and as this work proceeds it is begin­ GUEST EDITORIAL ning to produce highly encouraging results. Tuesday, August 2, 1977 (By Sanford N. McDonnell) At McDonnell Douglas Corporation, the ex­ Mr. MCCLORY. Mr. Speaker, on Au­ Imagine this. You go to the airport, pick ample that I necessarily know best, engineers gust 18, 1977, residents of Wauconda in up your ticket and check your luggage, and have been creating the concept or an ad­ Lake County in my 13th Congressional are directed to the gate where something new vanced supersonic transport that; would District will begin a 4-day celebration called a global rocket transport stands wait­ travel at 2.2 times the speed of sound-9 ing. You fl.nd your seat, relax while the other percent faster than the Anglo-French Con­ observing the lOOth anniversary of the 169 passengers come aboard, and when the corde, the first SST to enter airllne service. organization of that community as a scheduled departure time arrives you take Our advanced SST would carry 273 passen­ village. off. gers (the Concorde carries a maximum of Clearly those early residents who or­ Forty-five minutes later, after a cup of 108), its range would be 4,500 nautical miles ganized this village felt strongly that coffee and a leisurely browse through the (versus 3,150 for Concorde), and it would be it was time to become a municipality be- 26232 EXTENSIONS OF REMARKS August 2, 1977 cause the vote was more than 2 to 1 UNSETTLING SETTLEMENTS This was hardly the time for Israel to appear nearly a century ago: 49 for incorpora­ to be asserting new territorial claims or to tion to 24 against. give the Arabs a new pretext for avoiding HON. PAUL FINDLEY difficult questions. But the lovely name Wauconda, mean­ OF ILLINOIS Mr. Begin, of course, did not initiate the ing "Spirit Water," already was affixed to process of extending Jewish settlements into the map of northeastern Illinois before IN THE HOUSE OF REPRESENTATIVES the West Bank. The previous Labor Govern­ the village's incorporation. In 1849, a Tuesday, August 2, 1977 ment was deeply divided over the propriety and prudence of creating Jewish communi­ township had been created. Several Mr. FINDLEY. Mr. Speaker, the West months later in 1850 the name Wau­ ties on territory controlled by Jordan from Bank of the Jordan River will un­ 1949 to 1967. Accordingly, the Labor coalition conda was selected for the township. doubtedly be one of the most difficult tried to block new settlements, but often History tells us that a young man, a issues to resolve at the Geneva Confer­ only half-heartedly. It sought to appease schoolteacher in the area, proposed it. He ence. Prime Minister Begin indicated politically significant groups that assert a had been reading an Indian story in during his recent visit to the United strong claim to these Biblical lands while which the name Wauconda appeared. States that Israel will not set any pre­ avoiding a final juridical resolution on their Further, local tradition held that a young future status. conditions to negotiations, yet he also The new Israeli Government depends for Indian chief named Wauconda had been made it quite clear that Israeli with­ its narrow majority on parties that are pas­ buried on the southern shore of Bangs drawals from the West Bank will be sionately convinced of the rectitude of West Lake, named for Justus Bangs, a man extremely difficult. The Arab States have Bank annexation-as Mr. Begin himself from New England who built a log cabin insisted with equal determination that seems to be. It is not surprising, therefore, on its shores and in 1836 became Wau­ Israel must withdraw to the pre-June that his Government would move in this conda's first settler. 1967 borders. direction. But the fate of negotiations may well depend on how far he means to go. It Mr. Speaker, in 1849, the year Wau­ Prime Minister Begin and the Arab may be that his actions represent only a conda Township was created, the area leaders have expressed their great will­ minimal and politically necessary concession that later became the village of Wau­ ingness to pursue negotiations in the to the militants on his right flank, "legaliz­ conda had about 200 people, 3 good stores, near future. To maintain what appears ing" some existing settlements to avoid and 2 public houses. By July 1, 1975, its to be the building momentum toward creating new ones. If that is the case, the population was 5,700. a Geneva Conference, it is important United States should be so informed, and perhaps even reassured. But if he intends a Wauconda, of course, has changed that the states involved stress potential more massive settlement of Jews in disputed through the years. Yet continuity has areas of agreement and attempt to avoid territory, he may well make real negotiation been assured by descendants of some of emphasizing their differences. or a test of Arab flexibility impossible. its early families who have stayed on. For Unfortunately, the recent announce­ 3 hours Saturday afternoon, August 20, ment of the Israeli Government that it [From the Washington Past, July 28, 1977] part of the Andrew Cook home on Main has decided to legalize three unauthor­ ISRAEL'S CHALLENGE TO CARTER Street in Wauconda will be open for the ized settlements in the West Bank The Israeli Government's decision to legal­ centennial festivities. This home, built of strengthens the impression that it is ize three previously illegal settlements on the brick made in Wauconda and the first unwilling to forego preconditions to West Bank is more than "deeply disappoint­ brick house in the area, was begun some­ ing," as the State Department declared. It is negotiations and risks unsettling a mood reckless, provocative and indefensible. It time after 1840. conducive to peace ihitiatives. I hope amounts to a frontal assault on the American Now the Wauconda Township Histori­ that these three settlements are evidence effort to arrange a settlement by inducing cal Society is beginning to restore the of Mr. Begin's need to conciliate his Israel to exchange war-won territory and a Andrew Cook home with revenue sharing pronouncements as a politician with his place for the Palestinians, for contractual ac­ funds from the township. Still living in policies as head of state rather than an ceptance by it..s Arab neighbors. Coming on the village are two of my most cherished indication of a deliberate effort to estab­ the heels of Prime Minister Begin's warm re­ friends, Mrs. Avis Powers, now 96, a ception in Washington, the decision conveys lish further settlements throughout the the unmistakable aura of sticking a thumb granddaughter of Andrew Cook, and Mrs. West Bank. The latter would undermine in 's eye. Mertie Cook, widow of Homer Cook, one­ our hopes for peace. Mr. Begin's view that the West Bank ls time Wauconda Township supervisor I call to the attention of my colleagues "liberated" territory, Israel's by holy scrip­ and a grandson of Andrew Cook. In Wau­ the following editorials on the settle­ ture, and not occupied territory, is well conda Township, Glenn and Daisy Bacon ments in the West Bank: known. It is also wholly unrealistic and in­ compatible with any serious effort to work continue to farm the land his grand­ [From , July 28, 1977) father began farming in 1868. These are out a lasting settlement in the Middle East. just a few examples of people who still ISRAEL'S UNSETTLING SETTLEMENTS For the purposes of American diplomacy, it In giving official sanction to three previ­ cannot be controlling. It is Mr. Begin's prob­ make Wauconda their home--on or near ously unauthorized settlements on the occu­ lem, religious and political, to solve as best the lands their forefathers settled. pied West Bank of the Jordan River, Prime he can. Last week in Washington he chose to One of the other early Wauconda fam­ Minister Begin's new Israeli Government has muffie disagreements with the United States ilies is that of the late Senator Ray Pad­ surely complicated the search for a Middle on this substantive issue and others. Mr. Car­ dock, a long-time honored member of the East peace settlement. By making the move ter did not press him, at least publicly. To Illinois State Senate. I succeeded Sena­ only hours after his return from a generally the extent that Mr. Begin chose to mistake tor Paddock in that office upon his re­ amicable meeting with President Carter, Mr. the President's discretion for consent, or Begin has also complicated further his rela­ weakness, that was a mistake. Legalim tion of tirement in 1952 and then served in the tions with the United States. three West Bank settlements and loud Israeli State senate for 10 years preceding my By itself, the granting of legal status to demands to plant more pose a challenge the election to the Congress in 1962. Senator settlements, which had been founded by Carter administr>ation can no longer ignore. Paddock's son, Jim Paddock, and daugh­ militant Israelis acting largely on their own, Edward Sheehan, in an article on the oppo­ ter, Doris Paddock Wiemuth, together does little to alter the existing situation. No site page today, suggests that Mr. Begin may with their families, continue to make new settlements are thus created, and no wish to absorb the West Bank and, if the their homes in Wauconda. additional settlers are being moved into Arab Arabs overly protest, to wage preemptive war. regions (although the development funds for We do not subscribe to this scenario but it Mr. Speaker, I look forward to joining which the three communities now become seems to us undeniable that the latest Israeli the people of Wauconda on Sunday, eligible will certainly make them more at­ move adds plausibility to it. Certainly it puts August 21, for their centennial parade. tractive as homes for other Israelis). the whole credibility of the administration's I congratulate Mayor John Kuester, Hal But the context and timing of the action Mideast diplomacy on the line. Pohlman, and George Lincoln, cochair­ are disturbing. The United States had wanted President Carter has been, we believe, am­ men of the centennial celebration, and a sign from Israel that a.11 territories occu­ ply attentive to Israel's legitimate security members of their steering committee, and pied since 1967 were negotiable, including needs. He has offered Israel generous and ef­ all the many other individuals and or­ the West Bank. Attention ought now to have fective alternatives to the permanent reten­ ganizations who have given time and ef­ turned to the Arab governments to see how tion of territory. These include arms guar­ much peace and genuine security they are antees, interim security borders beyond the fort to make the lOOth anniversary of prepared to grant the Israelis for a return of political borders, limitations on a Palestinian Wauconda's incorporation another joyful occupied land. Secretary of State Vance will "homeland," relations of a new sort with its historic event in Illinois-and in the be touring the region next week to see how neighbors and, of course, American friend­ Nation. formal negotiations might be set in motion. ship and commitment. So the United States August 2, 1977 EXTENSIONS OF REMARKS 26233 does not have to apologize to Israel for ask­ constituents are not dolts. They know Johnson's widow, Lady Bird, was informed ing it, in a negotia..ted peace put into effect how easily the provisions of the admin­ of Salas' statements and said through a over a period of years, to withdraw to some­ istration's plan can be abused. And, if spokeswoman that she "knows no more about thing reasonably close to the 1967 lines. the details of the 1948 election other than Now that the Israelis have forced the issue, knowing the ease with which fraudulent that charges were made at the time, carried we are led to conclude that it 1s a good and votes can be recorded, can they be con­ through several courts and finally to a jus­ necessary one to fight out with them. The fident in the outcome of an election? tice at the Supreme Court." time 1s right: It is early in both the Carter And if they are not confident in the out­ The interviewed Sa.las fre­ and Begin administrations and if either is come of the congressional elections, can quently during the last three years, but he serious about peace, this issue has to be re­ they long respect the Congress and its only recently agreed to tell his full version solved. Good feeling of the superficial and laws? of what happened. Salas said he decided to misleading sort achieved by Mr. Begin here Now, there may be a few Members who break his silence in quest of "peace of mind last week is not merely worthless. It becomes minimize or ignore the threat this legis­ and to reveal to the people the corruption of positively perilous if it encourages Israel to politics." proceed in ways that could fatally foreclose lation poses to the confidence of the peo­ Salas says now tha.t he lied during an all hope for a comprehensive Arab-Israeli ple in their elected Representatives. But aborted investigation of the election in 1948, settlement. one need only tum to recent reports in when he testified that the vote count was the Washington Star to see how easily proper and above board. "I was just going honored public servants of high stand­ along with my party," he says. SELFISH REASONS FOR OPPOSING ing can come into disrepute through ir­ He said Parr ordered that 200-odd votes be INSTANT VOTER REGISTRATION regularities at the polls. Even Presidents added to Johnson's total from Box 13. Salas are not immune to the stigma of voting said he saw the fraudulent votes added in alphabetical order and then certified them fraud perpetrated by others. as authentic on orders from Parr. HON. ROBERT K. DORNAN The Washington Star in last Sunday's OF CALIFORNIA The AP interviewed everyone connected edition, relates the story of Luis Salas with the case who is still alive to corroborate IN THE HOUSE OF REPRESENTATIVES who admits to certifying enough fictitious Salas' story. One man who got a brief look at Tuesday, August 2, 1977 ballots to steal an election 29 years ago the Box 13 vote tally in the original investi­ and start Lyndon Johnson on his path gation is former FBI agent T. Kell1s Dibrell, Mr. DORNAN. Mr. Speaker, I believe who confirmed Salas' statement that the last that most of my colleagues here today to the Presidency. The Washington Star article did not accuse Congressman 200 votes were in alphabetical order. are aware of the potential for fraud "It stuck out like a sore thumb," said which is inherent in the administration's Lyndon Johnson of having had a hand Dibrell. "Also the last 202 names were ma.de instant voter registration scheme. in the fraud but the glaring fact remains with the same colored ink, and in the same Representative STEVE SYMMS and I il­ that his original election and subsequent handwriting, whereas the earlier names in lustrated how easily false identification elections are now placed under a cloud the poll list were written by different in­ can be obtained when we purchased Vir­ that can only impugn the respectability dividuals and in different color links." of every office he held. The final statewide count, including Box ginia !D's in false names for a nominal 13 votes, gave Johnson an 87-vote margin in amount of money. Representative HENRY It is just this point which we should keep in mind when we are called upon a total tally approaching 1 m1llion and earned HYDE-possibly in anticipation of such him the tongue-in-cheek nickname, "Land­ voter abuse-has introduced excellent to vote on President Carter's proposal: slide Lyndon." legislation which would make it a Fed­ It makes little difference if we condone Texas Democrats were split in 1948. John­ eral crime to obtain false identification. fraudulent voting in our own favor, all it son, then 39 and a congressman, represented Many of our colleagues have agreed with takes is one dishonest supporter to cast "new" Democrats in his bid for the U.S. him that the chances for abuse at the doubt on our o·wn right to hold office. Senate. His primary opponent was Steven­ polling place and at the immigration of­ If fraudulent voting was so easy to son-60, three times Texas governor, never achieve 30 years ago with much more beaten and the candidate of the "old" wing fice are almost limitless. of the party. They called him "Calculating Now, I believe that the potential for stringent controls, how easy will it be Coke." abuse is sufficient reason for the Con­ if same-day registration is established? The vote in the July primary was Steven­ gress to reject the President's proposal Before any of my colleagues decide to son 477,077, Johnson 405,617. But a third for instant voter registration. We owe support the President's proposal, I ask candidate, George Petty, siphoned off enough it to our constituents. They deserve to them to read the Washington Star article votes to deny Stevenson a majority, forcing have their votes counted. They do not and imagine that their names appear in a runoff between Stevenson a.nd Johnson on want-or deserve-to have them watered the place of Coke Stevenson's. Aug. 28, 1948. down by duplicate or fraudulent voting. TEXAN CLAIMS HE STOLE 1948 ELECTION In the interim Johnson intensified his FOR LBJ campaign. One of the places he went stump­ "One man, one vote." That is what the ing was the hot, fiat brush country of South law states. It does not state: "One honest (By James W. Mangan) Texas, George B. Parr country, where the man, one vote; one dishonest man, two ALICE, TEx.-A former Texas voting official Mexican-American vote seemed always to votes." And yet, I fear that the latter will seeking "peace of mind" says he certified come, favoring Parr's candidate, in a bloc. most likely result if this legislation is enough fictitious ballots to steal an election The power had passed to Parr from his passed. 29 years ago and start Lyndon Johnson on father, Archie, a state senator who had sided But there is another, less obvious and a path that led to the presidency. with Mexican-Americans in a 1912 battle The statement comes from Luis Salas, who with Anglos over political control in Duval more selfish, reason why we as reoresent­ was the election judge for Jim Wells County's County. The younger Parr was known as the atives of the people should oppose the notorious Box 13, which produced just "Duke of Duva.I." administration's proposal. It is a selfish enough votes in the 1948 Texas Democratic Salas said he was Parr's right-hand man reason, I admit. But it is something about primary run-off to give Johnson the nomi­ in Jim Wells County from 1940 to 1950, but which we should rightly be selfish. It is nation, then tantamount to election, to the quit over Parr's failure to support a. fellow the confidence of the people in us as U.S. Senate. Mexican-American who had been charged their representatives. I am speaking not "Johnson did not win that election; it was with murder. only of the confidence of our own con­ stolen for him. And I know exactly how it "We had the law to ourselves there," Salas stituents but of the entire American peo­ was done," said Salas, 76, who in '48 had ab­ said. "It was a lawless son-of-a-bitch. We had solute say over vote counts in his Mexican­ iron control. If a man was opposed to us, ple in its Congress as a whole. In this, American, South Texas precinct. we'd put him out of business. Parr was the the era of the Watergate and Korean The controversy over that run-off election godfather. He had life or death control. scandals, can we afford to be anything against ex-Gov. Coke Stevenson has been a "We could tell any election judge: 'Give but selfish and jealous of the people's subject of tantalizing conjecture for nearly us 80 percent of the vote, the other guy 20 confidence and our reputations? Public three decades, ever since U.S. Supreme Court percent.' We ha.d it made in every election." confidence in the Congress is at an all­ Justice Hugo Black halted an investigation, The night of the runoff, Jim Wells Coun­ time low. Need I remind my colleagues but the principals have been silent. ty's vote was wired to the Texas Election that garbagemen have a higher rating George B. Parr, the South Texas political Bureau, the unofficial tabulating agency: in confidence polls than do we? boss whom Salas served for a decade, shot Johnson 1,786, Stevenson 769. himself to death in April 1976. Johnson is Three days after the runoff, with Steven­ If we are to approve the instant voter dead a.nd so 1s his opponent. Salas, retired son narrowly leading and the seesaw count registration scheme, do we not invite in­ from his railroad telegrapher's job, is among nearly complete, Salas said, a meeting was credulity among our constituents as to the few living persons with direct knowl­ called in Parr's oftlce 10 miles from Alice. the validity of our own elections? Our edge of the election. Salas said he met with George B. Parr; Lyn- 26234 EXTENSIONS OF REMARKS August 2, 1977 don Johnson; Ed Lloyd, a Jim Wells County go to a grand jury. "I know that I did not Portugal, and condemned the rise of tyranny Democratic Executive Committee member; buy anybody's vote,'' Johnson said. elsewhere. and Bruce Ainsworth, an Alice city commis­ Stevenson went to federal court in Fort The world has changed, and we have sioner. Lloyd and Ainsworth, like Johnson Worth and, on Sept. 14, Judge T. Whitfield changed with it. and Parr, now are dead. Davidson signed a temporary restraining or­ Even Watergate itself, physical symbol in Salas told The AP: der forbidding certification of Johnson as the Washington of our most searing scandal, is "Lyndon Johnson said: 'If I can get 200 Democratic nominee. The judge ordered an altered. In the rooms where the burglars more votes, I've got it won.' on-the-spot probe of voting in Jim Wells prowled five years ago, scientists from the "Parr said to me in Spanish: 'We need to County. National Institute of Medicine now quietly win this election. I want you to add those ponder the future of American health care. 200 votes.' I had already turned in my poll Only a small plaque on the door commemo­ and tally sheets to Givens Parr, George's 201 YEARS LATER, AND 5 YEARS rates the political crime of the century. brother. AFI'ER No matter. Long after the plaque and "I told Parr in Spanish: 'I don't give a building have crumbled, the real legacy of damn 1! Johnson wins.' Watergate will remain. "Parr then said: 'Well, for sure you're going HON. LEON E. PANETTA Because of Watergate, the presidency has to certify what we do.' OF CALIFORNIA been taken off the auction block. Sunshine "I told him I would, because I didn't want laws have been enacted, aimed at opening anybody to think I'm not backing up my IN THE HOUSE OF REPRESENTATIVES the federal government to public inspection. party. I said I would be with the party to Tuesday, August 2, 1977 Tough new ethics codes have been enacted. the end. After Parr and I talked in Spanish, Congress has reasserted its authority as a Parr told Johnson 200 votes would be added. Mr. PANETTA. M:r:. Speaker, in 1976, co-equal branch of government. The federal When I left, Johnson knew we were going to when this Nation celebrated its bicen­ law enforcement and lntelllgence establish­ take care of the situation.'' tennial, our attention was focused on ments have been reminded of the meaning Salas said he saw two men add the names the events of those 200 years which of the Blll of Rights. to the list of voters, about 9 o'clock at night, helped to shape our national character. And the age of implied consent is over. in the Adams Building in Alice. He said the As we pass our 201st year, perhaps it is "Because we say so" is no longer an accept­ two were just following orders and he would able answer when people ask why the gov­ not identify them. better to narrow our focus and measure ernment thinks a certain course of action to The AP interview then produced this ex­ the impact of our more recent history. be wise. change: In a recent editorial, the Watson­ The nerve endings of the body politic are Question. When you told Parr you would ville Register-Pajaronian examines the stlll noticeably frayed. The Korean lnvestl­ certify the votes, he said he would get some­ events of the last 5 years in the context gatlon drags on and whispers of "coverup" one else to actually add the names? of America's constant stuggle for self­ mount. Answer. Yeah. And I actually ~w them do improvement and our ability to learn A deputy attorney general tries to invoke it. I was right there when they added the from past mistakes. I believe the spirit of "executive privilege" to keep Congress from names. cautious optimism which this editorial seeing a Justice Department memo crltlclz­ Q. Were all 200 names in the same hand­ lng President Carter's instant-voter-registra­ writing? reflects is shared by a large number of tion proposal. He ls bludgeoned into submis­ A. Oh, yeah. They all came from the poll Americans throughout the country, and sion by angry legislators. taxes, I mean, from the poll tax sheet. for this reason I would like to share it A suggestion by Attorney General Gritnn Q. But some were dead? with my colleagues: Bell that there is a distinction between "na­ A. No one was dead. They just didn't vote. 201 YEARS LATER'. AND 5 YEARS AFTER tional defense" and "national security" as Q. So you voted them? It's 201 years now-as we were amply re­ far as wiretapping ls concerned provokes A. They voted them. minded during last year's Bicentennial ob­ howls from senators who learned the hard Q. You certified? servances--since the Declaration of Inde­ way that "national security" can cover a A. I certified. So did the Democratic county pendence was signed as the forerunner of multitude of sins. chairman. I kept my word to be loyal to my the federal government by which the United We have renewed the social contract be· party. States is glued together. tween the government and the governed, but Q. Had some of those names already voted? Centuries are hard for people to count, the terms have been subtly altered. We read A. No, they didn't vote in that election. except as a concept, because so few of us ex­ the fine print carefully now. They added •em. They made a mistake of perience more than a substantial fraction Watergate ls behind us, yet part of us. It doing it alphabetically. of one century. Years, we can cope with, is ancient history and current events, a Q. They added them alphabetically, as understand, and sometimes marvel at. memory and an omen. The fifth anniversary though they had walked in to vote alpha­ For instance, can you believe it was really is hardly an occasion to "celebrate.'' But it betically? five years since Watergate began-a bungled is well worth noting for the changes­ A. Yeah, that's what I told George B., and burglary which in the end rocked the coun­ changes for the better-that is has wrought he wouldn't listen to me. I said: "Look at try and disgraced a president into resigna­ in American politics. the A, you add 10 or 12 names on that letter. tion? Why don't you change it to the other, c or Why, just the other day Richard Nixon D or X, mix 'em up?" George said, "That's was back in our living room insisting he was ROCKY POMERANCE all right.'' George was stubborn. He would guilty of no more than "mistakes of the not listen to anybody. But it was stupid. They heart.'' went to the poll tax list and got those names. Just the other day, the President's men, HON. WILLIAM LEHMAN For instance, on the A they got 10 or 12 H. R. Haldeman and John Mitchell, were OF FLORmA names. playing out their final scene before Judge Q. People who had not voted? John Sirica and then going to prison. IN THE HOUSE OF REPRESENTATIVES A. That's right. They went on the B the Just the other day, the Cubans were on Tuesday, August 2, 1977 same way, until they complete 200, and I television explaining why an order from their told George, "That's wrong." old CIA chum, E. Howard Hunt Jr., to break Mr. LEHMAN. Mr. Speaker, I wish to Q. While they were doing it you told him? into the Democratic headquarters seemed pay tribute today to Chief Rocky Pomer­ A. Yeah, and he said: "It's OK." perfectly reasonable. ance who has just retired from his post The names, the faces, the excuses, the of Chief of Police in Miami Beach. Q. They should have changed the hand­ places-they are all so sharp and clear, so writing? close to the surface of our lives. How could a Rocky Pomerance leaves behind an im­ A. How? Only two guys? How they going full half decade have elapsed since we first pressive record in the fteld of law en­ to change it? The lawyers spotted it right made their acquaintance? forcement. Most memorable perhaps is away, they sure did. But wait---has it been only five years? his handling of the 1972 political party Six days after the runoff, with Stevenson That doesn't seem possible either. conventions. We all remember how we still holding a narrow lead in the statewlde We have had three Presidents, four vice feared that either or both of those con­ count, a second telegram was sent, changing presidents, six attorneys general and three ventions would be a repetition of the 1968 Jim Wells County's vote to: Johnson 1,988, FBI directors since the bungled burglary of Stevenson, 770. Chicago convention. Thanks to Rocky, June 17, 1972. violence was kept to an absolute mini­ Johnson gained 202 votes; Stevenson 1. We have lost a war, survived a recession They came from Box 13. and celebrated, as of today, our 20lst birth­ mum. He went out himself among the The next day, the otncial statewide vote day in the interim. demonstrators for the purpose of dis­ canvass gave Johnson 494,191 and Stevenson We have seen ancient enmities erupt once cussion and not confrontation. He was 494,104. more in the Middle East and on Cyprus, sub­ so successful, that he was asked to direct Stevenson protested. Johnson said that 1! siding into sullen truces. We have hailed the security at the 1976 Democratic Conven­ Stevenson had evidence, it was his duty to rebirth of democracy in Greece, Spain, and tion in New York City as well. August 2, 1977 EXTENSIONS OF REMARKS 26235 His belief in humane law enforcement Subtotal ------$25, 061 $21, 006 setts does a great deal to remove the set an example for the entire department stigma which affected the Italo-Ameri­ as well as his peers among chiefs of Total assets _____ 183, 173 166,965 can community. Governor Dukakis, a police. He was so well respected in his Liab111ties and net Greek American, responded to the con­ field that he was elected president of worth: cerns which many immigrants have re­ the International Association of Chiefs Mortgage, North garding their ability to get a fair trial in of Police. Carollna ------­ 18,314 the United States. He has served on numerous commis­ Mortgage, Virginia_____ 52, 941 54,524 A policy of selective justice for some sions and has received countless awards Personal loans, total___ 14, 600 19,539 is in total violation of the intent of our Constitution. We provide for liberty and in recognition of his superior service to Total 11ab111ties__ 67, 541 92,377 the public. At the time of the announce­ Net worth ______116, 632 74,688 justice for all in this Nation, and any ment of his retirement, tributes appeared wavering from this policy should be con­ in all Miami's major newspapers. Liab111ties and net demned and not repeated. Rocky Pomerance believed that vio­ worth ------183, 173 166,966 It is regrettable that it took almost lence is a byproduct of frustration. To 50 years to have this horrid injustice rectified. Yet rather than berating those reduce violence in our society, one had Mr. Speaker, also for the public record to deal with the frustration. It would who failed to act, let us commend the I am submitting at this point a listing of man who did, Governor Dukakis. In addi­ be well for all law enforcement omcers my income for 1973, my first year in tion to issuing his proclamation, Gover­ to take note of Rocky's philosophy. "Give Congress, and for the year just ended, people the opportunity to speak out, al­ nor Dukakis also set aside August 23, 1976 along with my income tax payments 1977, as a memorial to Sacco and Van­ low for a wider representation among the for those 2 years. citizens, and you remove most of their zetti. frustrations." A great nation achieves this status by 1976 1973 admitting to and learning from its mis­ Rocky Pomerance will be sorely missed, takes. Hopefully, the laws of this land not only in Miami Beach, but throughout Congressional salary ____ $44, 600 will never again be so abused by those Dade County. $38,722 Honoraria ------500 450 vested with the powers of enforcement Dividends, interest, and judicial action. The proclamation rent ------2,051 880 should be viewed as more than a sym­ be FINANCIAL STATEMENT Subtotal (gross bolic gesture. It should the catalyst 47,151 40,052 upon which we, as a nation, reamrm our Income) ------commitment to insuring justice for all HON. JAMES G. MARTIN omce expenses in Americans irrespective of race, religion OF NORTH CAROLINA excess of allowances __ -2,564 or ethnic background. Adjusted gross income __ 47,151 37,488 IN THE HOUSE OF REPRESENTATIVES Net taxable income, Tuesday, August 2, 1977 Federal ------26,901 25,641 Net taxable income, EIGHTIETH ANNIVERSARY OF ALIEF Mr. MARTIN. Mr. Speaker, because State 32,303 27,840 it is desirable that people in public of­ ------POST OFFICE fice be open about their financial affairs Federal taxes paid _____ 6,479 5,755 in order to retain the confidence of the State taxes paid ______2,021 1,729 HON. BILL ARCHER public, I am herewith submitting a OF TEXAS statement of my assets and liabilities as Total income tax of the end of 1976 and as of the end of paid ------8,500 7,484 IN THE HOUSE OF REPRESENTATIVES 1973, my first year in Congress. Tuesday, August 2, 1977 It is my belief elected omcials have an SACCO AND VANZETTI-A CASE Mr. ARCHER. Mr. Speaker, quite often obligation not only to avoid conflicts of OF BELATED JUSTICE we who serve in the House of Represent­ interest, but also to give such assurances atives receive complaints about the way as are possible to the public that such our constituents are treated by various conflicts do not exist. HON. MARIO BIAGGI agencies of the Federal Government, and The statement follows: OF NEW YOBX certainly the U .s. Postal Service has IN THE HOUSE OF REPRESENTATIVES come in for its share of criticism over the Dec. 31, Dec. 31, Tuesday, August 2, 1977 years. Assets 1976 1973 That is why I would like to share the Mr. BIAGGI. Mr. Speaker, almost 50 following editorial written by the presi­ Cash and bank years ago, the State of Massachusetts dent of the Alief Chamber of Commerce, accounts ------$740 $2, 048 executed Nicola Sacco and Bartolomeo Mr. Fred F. Warren, which described his Savings accounts ______6,405 900 Vanzetti, following their conviction for community's deep appreciation for the Automobiles and boats_ 10,500 7,500 robbery and murder. Practically since service provided by their post omce dur­ Household, that very day, Italo-Americans have miscellaneous ______ing its BO-year history: 10,000 8,000 challenged the manner in which these EIGiiTIETH ANNIVERSARY OF ALIEF POST OFFICE two men were tried and convicted. It Alie! observes a significant anniversary this Subtotal ------27, 645 18,448 was charged that Sacco and Vanzetti Stocks, bonds (traded)_ 10, 790 6,095 year, in the 80th birthday of the Alie!, TX, Stocks, bonds were denied a fair trail by virtue of their Post omce. (untraded) ------2, 747 2,896 being foreigners and political dissidents. The Post omce was named for Alie! O~lla Last week in a courageous and commend­ Magee. It was established in 1897. Mrs. Magee Subtotal/personal able act, Gov. Michael Dukakis of Massa­ became the postmistress. property 41,182 27,439 chusetts officially issued a proclamation Prior to this date the town was known as clearing these two men of the charges. Dairy, from which Dairy-Ashford Road gets Real estate: its name. Home in North This proclamation closes the door on The town had been platted in 1895. This is Carolina ------32, 930 50,000 one of the darkest episodes in the history the area which all Alieflans today refer to, Home in Alexandria, of American jurisprudence. The procla­ reverently, as "Old Alie!''. Va ------84, 000 68,000 mation confirms that these two men There is much speculation about the fu­ were victims of a travesty of justice, in ture of the Alie! Post omce. We sincerely hope Subtotal/real a nation which prides itself on its sys­ the Post omce will be allowed to continue estate ------116, 930 118, 000 tem of due process. In reality, Sacco and functioning and serving the people of this rapidly-growing area. Retirement funds: Vanzetti were deprived of all their rights in The Chamber of Commerce will do every­ rIAA (vested) ______21,361 18,676 under the law and, effect, were tried thing it can, working through our elected Insurance cash values__ 3, 700 2,850 and convicted by a kangaroo court. representatives in Washington to try to in­ The action of the State of Massachu- sure the permanency of the Alie! Post omce. 26236 EXTENSIONS OF REMARKS August f2, 1977 At the present time there are 700 boxes in But there has not been such publicity nam have up to now tended to be skeptical of the Post Office. If space were available, this about numerous self-immolations that have such reports. number could easily go to 2500 boxes. ta.ken place in Vietnam's southern zone in The Army newspaper, Quan Doi Nhan Dan, We are proud of the service provided by the the past few weeks. said that those opposing the new regime Alief Post Office Personnel and only wish they Among those arrested by political police on "are carrying out the orders of the obstinant had adequate facilities to handle the con­ April 6 were Thich Huyen Quang, deputy tyrannical elements who are still hiding out stantly increasing flow of business. head of the Institute of the Dharma Thich in the jungle, or of the CIA." It also referred Don't know how many Post Offi.ces in the Quang Do, secretary-general, and all five to "the plots of the CIA." United States Postal Service are profit cen­ newly elected committee chairmen. Captured documents of one resistance ters, certainly not many, judging by the defi­ Coinciding with this there was a systematic member told of "preparing to meet brother cits, a.nd increased user costs, but we know drive against Buddist centres in the prov­ Minh, who had returned from Thailand to inces. According to s.ources many monks and give instructions" to the resistance. Minh the Alief Post Office returns a. handsome laymen have been imprisoned, sent to "re­ profit to the Postal Service. communicated "many urgent tasks that must education" centres, or held under house ar­ be performed during the coming period." rest. The articles did not elaborate on who Minh Some pagodas have been converted into was or who sent the instructions from Thai­ VIETNAM: WHAT HAS CHANGED? storehouses. land. COLLECTIVE SUICIDE Despite these references, there was little HON. LARRY McDONALD A mass of self-immolation took place late attempt to blame the resistance on the in November, 1975, and after the reunifica­ United States or other outside influences. In­ OF GEORGIA tion of Vietnam a Buddhist delegation was stead, the problem of the Communist govern­ IN THE HOUSE OF REPRESENTATIVES promised religious freedom by Pham Van ment was pictured as primarily one of "elim­ inating the consequences of the neocolonial Tuesday, August 2, 1977 Dong, Prime Minister. But a new outbreak of self-immolations oc­ war" and "mopping up enemy troop rem­ Mr. McDONALD. Mr. Speaker, in spite curred in the Mekong Del ta regions last nants." of the United States leaving Vietnam, November, culminating in the collective The articles identified the resistance orga­ suicide of the entire staff of the Cau Tharm­ nization as the National Restoration Front. the fighting goes on. If our purpose was The Vietnamese term phuc quoc, trans­ to "stop the war" and "stop the killing" tuong pagoda in Can-thoa city. Then in January representatives at a na­ lated as "national restoration,'' has been as some Members of Congress would have tional Buddhist congress began detailing used for a century or more by organizations had us believe, neither has stopped. And, what are reported as "hundreds of instances fighting government control. Because of its interestingly enough, the self-immolation of persecution-and numerous outright generic nature, the name has been thought of Buddhist monks has not stopped murders." by Western analysts of Vietnamese affairs to either. Only this time, they are protesting The Government responded by trying to cover a number of possibly separate or only against the Communists. The difference infiltrate delegations attending the congress. loosely 1... ')nnected groups. The Buddhist hierarchy then barred the But the Quan Doi Nhan Dan articles dis­ is that now, however, the networks and cussed the front as one organization with the New York Times are not covering Government infiltrators. Persecution fol­ lowed. numerous local units. The nature or reloca­ these events as this is impossible in a Now the Communist authorities often tion of a central command for all of south­ Communist society. This all goes to prove speak of "political security" being en­ ern Vietnam was not mentioned. that we stopped our support of South dangered by "saffron-clad agents." Strange An American specialist in Vietnamese af­ Vietnam for the wrong reasons. One echoes from the the past when some Bud­ fairs who has studied the articles, Cecil Spur­ could hope that certain policymakers dhists were once called "Communists in saf- lock, said that the National Restoration and the media will someday admit their fron robes". · Front seemed to bear a striking resemblance It is difficult to discover how far Viet­ to the Viet Cong's National Liberation Front mistakes or their lack of pure motives, in organization and methods of operation. but, it is doubtful. The relevant articles namese Buddhists are being helped by brethren abroad. Spurlock noted, for example, that the ar­ from the Washington Star of July 29, ticles referred to a "national restoration wo­ 1977, and the London Daily Telegraph of But it is reported that some days ago men's central committee." This implied that June 30, 1977, follow: Pham Van Dong received a letter from a. the front has developed-or is working to de­ top Buddhist leader outside the country velop-the same network of subsidiary or­ [From the London Daily Telegraph, June 30, saying that unless the persecution ceased, 1977] ganizations to rally specific interest groups 127 monks and nuns would one by one begin to its support that the NLF used to have. MONKS TuRN "DEATH BY FIRE" PROTEST committing suicide by self-immolation in The sophisticated structure of the front AGAINST COMMUNISTS various parts of the free world. was shown by references to forged identity (By Ian Ward in Manila.) The letter is reported to have said that the papers, an apparent system of "safe houses" Monks have been burning themselves alive 127 had already volunteered. where resistance personnel could obtain again in what used to be South Vietnam, this shelter while traveling, disguises and "secret time as a. result of Communist persecution of [From the the Washington Star, zones," and coordination with "a strange ship Buddhists. July 29, 1977] running without lights" off the Vietnamese Now the Communists have attacked the GUERRILLAS BATTLE HANOI IN JUNGLES-VIET coast. seat of the Unified Buddhist Church in Sai­ CONG TACTICS USED ON 'NAMELESS FRONT' One resistance member who was captured gon a.nd arrested the entire top echelon Bud­ (By Henry S. Bradsher) by government forces was quoted a.s re­ dhist leadership. A widespread, well-organized resistance ferring to orders from "the upper echelon." Among those detained is Thich Tri Quang movement is fighting the Communist regime This man was well supplied with money. who--ironically enough-master-minded the in southern Vietnam, the Vietnamese army The articles, signed by To Phuong with the South Vietnamese anti-Government Bud­ newspaper has reported. date April 1977, focused on the situation dhist demonstrations in 1963. in three provinces in the new Communist "In 'the fighting it is not clear where the reorganization of southern Vietnam. They These led to the overthrow and assassina­ front line is and where the rear area is," an lie inland from the South China Sea north tion of President Ngo Dinh Diem and set the army major wrote in his diary before he was of Dalat, an important highland city some Communists on the road to ultimate victory killed by the anti-Communist guerrillas, 150 miles northeast of Saigon. in 1975. "They call it 'the nameless front,'" he Most of the area is inhabited by hill tribes But according to reports a.nd documents wrote. who have always resisted control by lowland that have reached me in the past few days "Many soldiers have fallen on that name­ Vietnamese. But the articles gave Vietnam­ the Communists' anti-Buddhist drive makes less front," the newspaper quoted from Maj. ese names in identifying guerrilla leaders. moves a.gs.inst the Buddhist Church by a.ny Nguyen Thanh's diary. After the Vietnam war ended in the cap­ of the pro-American Governments, from A recent series of articles on efforts to sup­ ture of Saigon by the North Vietnamese Diem onwards, look very mild in comparison. press the guerrilla. challenge to the Hanoi Army on April 30, 1975, most people en­ Yet with real persecution under way the government pictures a mirror-image of the thusiastically accepted the new regime, the Communist authorities have little to fear methods that the Viet Cong used to use articles claimed. "But a considerable num­ from world opinion. Their closed society en­ against the Saigon government. However, the ber of puppet officers failed to report, re­ sures that by the time news filters out the strength of the resistance does not seem to be fused to undergo study (for 're-education' impact is lost, a.nd the Western world is now comparable to that attained by the Viet of former supporters of the Nguyen Van bored by Vietnam, any wa.y. Cong. Thieu government), and sought ways to hide THEN-AND NOW The articles confirm reports from Viet­ out," To Phuong wrote. In the closing sta..thinkable." It's called a cargo preference bill, and it ls ual covered under social security and August 2, 1977 EXTENSIONS OF REMARKS 26239 contributing on the maximum wage base the Civil Service Commission, recommends or actually highlight the impropriety of the under that program may receive. Thus, that MESA Administrator Robert E. Barrett grade assigned," it said. "issue a strong policy statement to all em­ "Posttion and organizational structures this measure would grant more equitable ployees stating unequivocally his support for which reflect duplication of effort, layering tax treatment to all foreign service and open and fair competition when filllng all of lines of supervision, costly fragmenta­ civil service retirees who do not receive positions in the bureau and that pre-selection tion of responsib111ties not only are allowed social security benefits. will not be tolerated." to continue, but flourish," it said. As explained in a July 18 letter to me Barrett could not be reached yesterday for The report said that at MESA headquarters from the Wisconsin Chapter of the Na­ comment. His superior, Joan Davenport, as­ "It is not uncommon ... for an individual tional Association of Retired Federal Em­ sistant secretary of the interior for energy to recommend and approve an incentive and minerals, said Saturday that "there wlll award with the same stroke of a pen." ployees: be action taken" to correct problems in the The department's review of some of the Since many retired U.S. Civil Service em­ personnel management program. incentive awards "disclosed a need for ployees do not receive social security pay­ The Interior Department-Civil Service stronger justification." ments, they do not have the benefit of such Commission report obtained by The Wash­ tax-exempt income as retired non U.S. Civil ington Post cites "substantive violations" of Service employees. In view of this, it is de­ the Civil Service merit system, which is de­ CONGRESSIONAL LEGAL COUNSEL sirable to increase a.nd expand the exemp­ signed to assure that all qualified persons ACT OF 1977 tion. receive equal consideration for hiring, promo­ I believe it is our responsibility to keep tions, assignments and training. in mind those living on fixed incomes as Last November, the Civil Service Commis­ HON. JOHN BRECKINRIDGE sion reported that MESA's Denver office had OF KENTUCKY we address meaningful tax reform. Too serious personnel management problems, and often, our efforts at "reform" have left it raised the issue of "official culpab1lity." IN THE HOUSE OF REPRESENTATIVES senior citizens worse off than before that In one instance, persons were hired part­ Tuesday, August 2, 1977 reform was undertaken. The bill I am in­ time to work in the field office's automated troducing today should be a valid part data processing division, "but, in reality, peo­ Mr. BRECKINRIDGE. Mr. Speaker, of any comprehensive tax reform under­ ple who were hired on part-time were work­ today I am privileged to introduce leg­ taken by the 95th Congress. ing fulltime and overtime and then those islation creating an Office of Congres­ that were working overtime were getting sional Legal Counsel. The bill is similar incentive awards for working overtime," ac­ to title Il of S. 555, passed by the Senate cording to Lawrence Bembry, acting chief of the Interior Department's Division of Pro­ 74 to 5 on June 27. MESA'S TRANSFER TO THE DEPART­ gram Planning and Evaluation. The need for creating an Office of Con­ MENT OF LABOR The November report also cited preselec­ gressional Legal Counsel is clear. It is tion in hiring and unjustified promotions. not surprising that the exercise by Con­ It said they occurred in a "series of paper gress of its constitutional powers is fre­ HON. JAMES L. OBERSTAR manipulations of the technical personnel quently challenged in, and affected by, OF MINNESOTA systems, i.e., misleading or false position de­ various court proceedings. As Alexis de IN THE HOUSE OF REPRESENTATIVES scriptions to expedite specific management objectives for the placement or promotion of Toqueville observed during his travels Tuesday, August 2, 1977 selected individuals." in America in 1831: Mr. OBERSTAR. Mr. Speaker, re­ MESA was established in 1973 by the Sec­ Scarcely any political question arises in retary of the Interior to provide more strin­ the United States that is not resolved, soon­ sponding to widespread concern over in­ gent mine safety and health enforcement. It er or later, into a judicial question. effective administration of the mining ha.s about 3,000 employees, 10 per cent of enforcement and safety program and its whom are located at MESA headquarters in Unlike the executive branch of Gov­ inappropriate location in the Department Arlington. ernment, Congress does not generally at­ of the Interior, the House on July 14 Congress is expected to enact legislation tempt to effectuate its will and perform passed H.R. 4287, the Federal Mine Safe­ this year transferring MESA from Interior to its duties by initiating law suits in the ty and Health Act of 1977. the Department of Labor. President Carter courts. With a few notable exceptions, I If further justification for this legisla­ ha.s endorsed the transfer, Interior Secretary firmly believe that Congress should rely Cecil D. Andrus opposes it. tion were needed, it certainly is provided The Interior Department's personnel man­ primarily on its legislative, oversight, and in abundance in the August 1 Washing­ agement review said that MESA employees impeachment powers-rather than the ton Post article by Peter Masley reporting were promoted from clerical to technical or initiation of law suits-to fulfill its con­ on "deficiencies and violations of Federal professional levels "without competition." stitutional responsibilities. However, regulations in hiring, promotions, and in­ "Many of these actions were improper and through no choice of the Congress, many centive awards for employees" in the reflect the lack of management responsibility matters vitally affecting Congress end Mining Enforcement and Safety Admin­ for positions within their charge," it said. up in the courts. Most of these cases It cited "lack of required documentation" istration. to support promotions, and said MESA will arise where law suits have been brought This revealing article underscores the have to "identify highly qualified employees against Congress to challenge an official need for change in the Nation's hard rock whose opportunities were abridged by im­ action of the Congress, a Member or em­ mine safety program and, I hope, will proper actions ... and possibly require ad­ ployee of Congress, or a committee or inspire House and Senate conferees on verse action to remove employees improperly agency of Congress. In cases where Con­ H.R. 5287 to act speedily so that deficien­ promoted or placed. . . .'' gress is not named as a party, the powers cies such as are reported in this story can The report said that there has been inter­ of Congress are often at issue and are ference by MESA headquarters in the cla.s­ interpreted by the courts. be corrected and miners assured of a sifica tion and selection of employees in the strong effective mine safety program. Denver and Pittsburgh field offices. On the At present, representation of Congress The article follows: other hand, in Pittsburgh, personnel work and congressional interests in these cases U.S. MINE AGENCY PERSONNEL WOES CITED "has been seriously impaired by the absence is provided on an ad hoc basis by the (By Peter Masley) of firm and positive policy guidance from the Justice Department and, occasionally, headquarters function." The personnel management program at the by private legal counsel. Indeed, because Mining Enforcement and Safety Administra­ Also in Pittsburgh,, "We found a situation no permanent office has ever been given tion is riddled with deficiencies and violations of nonaction, inertness, if you will, because the responsibility to monitor-and defend of federal regulations in hiring, promotions of what has been unanimously interpreted these interests, the Senate Subcommit­ and incentive awards for employees, an In­ as headquarters policy to avoid unpleasant tee on Separation of Powers has often terior Department investigation has found. and/or corrective actions," he report said. It said that so simple a personnel correction a.s undertaken to warn Congress that its in­ Personnel problems are so widespread that reclassifying a clerk-stenographer job to terests must be defended. "it is virtually impossible to isolate program clerk-typist was not done in two years. deficiencies from headquarters a.nd field," a In recent years, Congress has invol­ department report says. At headquarters, "We found the MESA untarily been subjected in extensive liti­ position management and classification pro­ gation to defend its constitutional pow­ The Interior Department review "revealed gram a.s being most inadequate," the report many problems which were found to be sys­ said. "The quality of overall position clas­ ers. Indeed, in the last 5 years the Jus­ temic not only at the bureau headquarters sification of the headquarters was such that tice Department alone has defended level, but also in the field offices located in of approximately 62 positions, roughly 50 per Members, officers, and committees of Denver and Pittsburgh," it says. cent were found to be improperly graded . . . Congress in at least 56 cases. This total The department's evaluation, ma.de with Evaluation statements are either nonexistent does not even include the 60 legal mat- 26240 EXTENSIONS OF REMARKS August 2, 1977 ters in which the Senate Watergate Com­ OIC is a national organization which One time he told me that local groups mittee became involved. teaches people skills through which they seeking new industry should always remem­ Not included in this number are ac­ may find employment. The St. Louis ber that Robins Air Force Base is the largest tions involving allegations of criminal industry in Georgia. For that reason, he said branch of OIC has now trained more he would question a program that devoted conduct, abuse of the franking privilege than 1,250 people, and placed 850 of all of its time and energy to seeking new by an individual Member, or contested these people in related jobs. industry and neglected to respond to the elections, which the Department and the I wish this organization, and its dedi­ importance of maintaining good relations proposed Congressional Legal Counsel cated executive director, Jewel P. Living­ with the base. will not and should not handle. ston, the best of luck, and know it will During his early days in Warner Robins, he developed real estate projects that added Mr. Speaker, various legislative initia­ continue its fine service to the St. Louis millions of dollars to the local tax digest. He tives in the past have been undertaken community. was one of the founders and a director of to create an Office of Congressional Legal the Bank of Warner Robins, which later be­ Counsel. I commend to the readership of came the Citizens and Southern Bank of the CONGRESSIONAL RECORD, to my fellow THE LOSS OF JIMMIE ROSENBURG Houston County. He also provided leadership colleagues and to the American people, in business and fin::mcial affairs as president an excellent series of articles on the need of the Warner Robins Merchant's Associa­ for a Congressional Legal Counsel; the HON. JACK BRINKLEY tion. OF GEORGIA He was a veteran of World War II, and type of cases the office would handle; a was a member of the American Legion and detailed description of its duties, and his­ IN THE HOUSE OF REPRESENTATIVES the Elks Club. torical, constitutional, and legal overview Tuesday, August 2, 1977 He died last Tuesday at the age of 58 fol­ of the issues involved, appearing in the lowing a lengthy illness. He had lived in February 1, 1977, CONGRESSIONAL RECORD, Mr. BRINKLEY. Mr. Speaker, seldom Warner Robins 30 years. pages 2961-2987: July 20, 1976, CONGRES­ does an article capture the real drama of After being eulogized by such good and SIONAL RECORD, pages 22788-22799: and life and death so well as the one by Joel honorable men as Rev. Napp Granade, Dr. Ferguson of the Warner Robins Sun with James 0. Dorriety and Congressman Jack the most recent debate on S. 555, as Brinkley, a bronze casket covered with green passed by the Senate in the June 27, 1977, reference to Jimmie Rosenburg. I submit it for the RECORD as the example of a fern and red roses was removed from Shirley CONGRESSIONAL RECORD, pages 29058- Hills Baptist Church, where he had been a 21007. man who took everything out of life and member. I understand from the Congressional put back a lot more: As the outside temperature stood at 98 de­ Budget Office, in their June 11, 1976 cost FRIENDS AND LOVED ONES SAY GOODBYE grees the casket was loaded in a hearse for estimate for an Office of Legal Counsel, (By Joel Ferguson) Lake Butler, Fla., for burial. The casket that the figures of $300,0DO for fiscal year He was a veteran of World War II, and was borne by his dear friends Bllly Randall, one of his most prized possessions was a 1929 Frank Bizzell, C. B. Mitchell, Denmark 1978, $300,000 for fiscal year 1979, and Groover, F . 0 . McKneely, Lee M11ler and Rus­ $400,000 for fiscal year 1980, were based calendar from his father's general store in Lake Butler, Fla. The calendar was displayed sell Norris. on an initial staff of a Congressional Le­ near his desk and he admired it often. And this is the way it was a.t 12 :40 p.m. gal Counsel, a Deputy Counsel, five as­ Mayor Foy Evans said the man made many on Thursday, July 7, 1977, when friends and sistant legal counsels, and clerical loved ones said goodbye to Jimmie Rosen­ contributions to the city. One of the most burg. support. significant of these contributions, according Mr. Speaker, the basic proposition is to the mayor, was the establishment of a Housing Authority in Warner Robins to pro­ simply this: That Congress needs a CHRISTIAN SCIENCE MONITOR DIS­ lawyer, and it needs a lawyer to handle vide low-cost housing for persons without homes. CUSSES ABOLlTTON OF MANDA­ its complex range of legal business, both Mayor Evans said the man had a great deal TORY RETIREMENT IN EDITO­ for defense and for affirmative action. of political influence in Warner Robins and RIAL We need this legislation in order that Washington. this omce might: First, defend the Con­ "But he never used that influence for him­ gress in civil actions; second, bring civil self," Evans said. "It always seemed to me HON. MARIO BI AGGI -actions to enforce congressional sub­ that he used his influence to help others. He OF NEW YORK was an outstanding citizen of Warner Robins, penas; third, to represent Congress; IN THE HOUSE OF REPRESENTATIVES and fourth, to intervene or appear as and he did a lot more for this community than most people realize." Tuesday, August 2, 1977 amicus curiae in legal actions effecting He liked to greet folks near the entrance to the Congress his store, Evelyn's, which is a few steps from Mr. BRIGG. Mr. Speaker, today's edi­ I urge the House to consider this bill, the fountain at Houston Mall. And he wel­ tions of the Christian Science Monitor and similar legislation, creating an Office comed the chance to talk to almost cvery­ contain an editorial entitled "Right To of Congressional Legal Counsel and to body-hoboes, merchants, doctors, bankers, Work After 65?" This editorial presents join with their colleagues in the Senate. lawyers or politicians. One day he laughed an objective evaluation of one of the key and said, "I even like to talk to newspaper legislative issues confronting the 95th reporters." Keeping property taxes low was one of his Congress-abolition of mandatory re­ ST. LOUIS TRAINING ORGANIZA­ main objectives. He took an enormous tirement. TION RECEIVES AWARD amount of pride in the fact that Houston A main theme of the editorial is that county provided more services for fewer tax retirement shculd be voluntary and at dollars than any other county in Middle the discretion of the individual. It should HON. ROBERT A. YOUNG Georgia. not be mandated due to the reaching of OF MISSOURI The pride was justified because he had an arbitrary chronological age. The main IN THE HOUSE OF REPRESENTATIVES served on the Houston County Board of Tax objection I have to mandatory retire­ Assessors for 18 years, and had served as ment is that it completely eliminates Tuesday, August 2, 1977 chairman of that board for the past 10 years. ability and experience from the criteria Mr. YOUNG of Missouri. Mr. Speaker, He was one of the persons responsible for organizing high school football programs in used to determine a person's capability I would like to take this opportunity to Warner Robins. This contribution, which to continue work. As the editorial states, congratulate the St. Louis branch of the brings untold joy and excitement to city "When it comes to holding a job-com­ Opportunities Industrialization Center, football fans on cool nights in autumn, petence should be the criterion." OIC, upon its receipt of the top award reached the pinnacle of success last year One argument consistently offered to plaque from region VII of the OIC's of when the Warner Robins High School De­ support mandatory retirement is that it America. mons became national champions. opens jobs for young people. This argu­ The award is presented annually to As a member of the Chamber of Commerce, ment is specious in that there is no direct he served for many years on the Military the ore in the region with the best over­ Advisory Committee for Robins Air Force one-to-one relationship between the job all record. The St. Louis ore has shown Base, and strongly advocated appropriations vacated by a person at 65 and one a remarkable progress over the past 2 to p·romote and improve relations between young person will assume. More impor­ years, moving from 3C>th to 1st place in the city and the base. He also recommended tantly this argument in effect condones training, enrollment, placement, and programs designed to retain and expand the the practice of promoting one form of community service. mission of the base. discrimination to remedy another. August 2, 1977 EXTENSIONS OF REMARKS 26241 One of the main forces behind the undertaken for the United Automobile Work­ Unfortunately we have reached the development of H.R. 5383, the bill chang­ ers which found that mandatory retirement point where our increased spending for ing mandatory retirement rules in both probably costs the American economy $10 billion a year. The loss comes both from forc­ health care-spending which now repre­ the public and private sector, has been ing the skills of skilled workers off the market sents 8.6 percent of the gross national Chairman CLAUDE PEPPER of the House and from reducing their purchasing power. product-is buying only maintenance of Select Committee on Aging. I am privi­ The House legislation does move with some existing health programs. The enormous leged to serve with Chairman PEPPER on caution. It advocates no mandatory retire­ amounts of money going for maintenance the Aging Committee as well as be a ment in private business before the age of of programs effectively prevents new pro­ member of the Education and Labor 70. But it would allow two years for accom­ grams for improving health care from Committee which reported this bill to modation in cases where collective bargain­ being added. This, therefore, is the ra­ the floor. I firmly support H.R. 5383 and ing had specified earlier retirement. It must be remembered that mandatory re­ tionale behind attempts to control feel it merits the early passage of both tirement ages came about at least partly for mounting health care' costs; unless we the House and the Senate. such constructive purposes as ensuring that control the runaway spending we have Abolition of mandatory retirement is people would not be forced not to retire and little hope of being able to afford new essential to promoting equality and jus­ that young people would find jobs opening programs for improving our health care tice as well as economic security for up. There is also the element of turnover system. Since hospital care represents America's elderly workers. It is our way without having to specify to the incompetent about 40 cents out of every dollar spent of demonstrating our disagreement with or unproductive that they are being let go for health, any attempts to control health the fallacy that age determines ability. for reasons other than age. It should be emphasized that banning man­ care costs must first concentrate on hos­ I urge my colleagues to take the time datory retirement would not bar voluntary pital costs. to read and evaluate this objective and retirement. Indications are that the mass of As ranking minority member of the reasoned editorial: people would not stay beyond 65 anyway. Subcommittee on Health and the Envi­ RIGHT To WORK AFTER 65? Those who want to continue working and are ronment, I have devoted much of my leg­ The new momentum against mandatory competent to do so would probably not upset islative effort to issues concerning our retirement in the United States demands at­ pension plans. country's health care system. And, as a tention both from institutions and from in­ But, as longevity increases, later retirement physician, I have made a personal com­ dividuals. Whatever the outcome of pending ages may prove economically attractive. mitment to doing what I can to help im­ federal legislation. institutions ought to take There is consideration now for extending prove the health care of our people. the hint to reex11m!ne their emnlovment from 65 to 68 the age at which full social and retirement policies to ensure maximum security benefits are available. If that were After considering this problem of ris­ fairness for all concerned. And individuals to occur, clearly a mandatory retirement age ing costs, I have concluded that we must should be reminded that the prime responsi­ of 65 would be out of keeping. have a program to contain the dramatic b111ty for security and satisfaction in later A perspective comes from Japan, where increases in hospital costs. In a time of years remains with them. tho average retirement age has been about limited resources, we no longer can af­ No matter what employers and govern­ 55. With Japan's dramatic increase in lon­ ford to maintain 100,000 idle hospital ment programs can do to help, it is only the gevity, there is talk of it rising to 56 or 57. individual who knows himself and his re­ Obviously, what might seem a clear-cut is­ beds at an estimated $20,000 to $30,000 sources well enough to put together the re­ sue is not one. That two-year study will be per bed per year. We no longer can tirement package tailored best for him. This welcome. afford to allow every hospital to build means prudent financial arrangements com­ expensive open heart surgery units when binin~ savings, private pensions, and social they do not have the patients to make security. But it also means developing the HOSPITAL COST CONTAINMENT economic and efficient use of those units. interests, talents, and skills to make "re­ If we continue to devote our financial tired" means something more than the BILL resources to unnecessary or duplicative "tired" which some retirees playfully put on their new nonbusiness cards. Such inner re­ and inefficient services, we will never sources can be drawn upon no less by those HON. TIM LEE CARTER have the funds needed to improve emer­ whose economic circumstances do not permit OF KENTUCKY gency rooms and outpatient departments, many options for financial preparedness. IN THE HOUSE OF REPRESENTATIVES to provide more and better preventive What the legislation should do is to sup­ care and health education, and to re­ port the best efforts of institutions and in­ Tuesday, August 2, 1977 move the :financial barriers to health dividuals. This may not mean a ban on all Mr. CARTER. Mr. Speaker, I am in­ care which now exist for many of our mandatory retirement programs, especially troducing today a proposal designed to citizens. when these are the result of collective bar­ gaining. The provision for a two-year study assure that a cooperative hospital cost­ In recent weeks I have devoted a great cominiRSion in the committee-passed House control system is implemented through deal of time to the study of the vari­ legislation should not be dismissed as a com­ the encouragement of State cost-control ous legislative proposals designed to deal promise or delaying tactic. The question is systems. with this problem, including the admin­ complicated enough to repay further study. We all are aware of the magnitude of istration's proposal, H.R. 6575. Although, On the one hand, as a number of spry the problem of rising health care costs. as I have indicated, I certainly share the septuagenarian congressmen argue, people should not be discriminated against simply Expenditures for hospital care have more administration's desire for timely action, because of chronological age. When it comes than quadrupled since 1965 with the I feel that the approach embodied in to holding a job, competence should be the average rate of inflation of those costs H.R. 6575 cannot accomplish the goals criterion. It is fitting for the legislation, 13.9 percent. Even if this increase is ad­ toward which we all should be working. which will probably go to the House floor in justed to reflect constant prices in the Instead, I believe that the administra­ September, to bar a mandatory retirement general economy, the average annual in­ tion's proposal may do more harm than age in the federal government. At least a crease still was 8.6 percent for hospital good. dozen states already bar it in state jobs. care. But a simple recounting of these A simple formula approach, as pro­ Yet the issue of "rights" for the elderly, a statistics does not describe the whole posed by the administration, cannot in­ station in life open to everyone, 1s different from that for blacks or women, for example, problem. We must also look at the health sure that needed facilities are not forced who are separate and distinct groups. And, if status of our citizens in light of this to close. It cannot assure that base-year rights are to be based on age, the rights of tremendous increase in health care in­ budgets are "reasonable." It cannot the young have to be considered, too. Un­ vestment. guarantee that present utilization levels less the elderly are retired, especially in times Although we certainly have made great represent care which is needed. It can­ of high unemployment, what happens to strides in combating the many health not take into account the wide variations young people's rightful access to employ­ problems we face, there still are improve­ among hospitals in terms of their size, ment? ments to be made. The infant mortality location, case mix, and scope of services. Such questions at least dictate caution before ruling out mandatory retirement in rate in some of our States is twice as Moreover, the formula approach does not private business, though such mandates high as it is in others, while the rate of differentiate between the overextended, should have review mechanisms so that to­ deaths from cancer actually has in­ inefficient hospitals and the efficient ones. day's collective bargainers do not determine creased since 1968. Furthermore, many In fact, the imposition of a simple, the rules for future generations. The coun­ of our citizens do not have access to the across-the-board formula would reward t ry cannot ignore studies such as the one care which they need. the inefficient hospital because 9 percent CXXIII--1652-Part 21 26242 EXTENSIONS OF REMARKS August 2, 1977 of a "fat" budget involves more dollars an advisory council representing all of The major differences between my pro­ than 9 percent of a "lean" budget. the groups concerned, including the posed transitional program and that con­ In contrast to the administration's HSA's and the PSRO's. tained in the administration proposal are proposal, the legislation which I am in­ The use of prospective budget review that: troducing today focuses on the establish­ would provide hospitals with an incen­ The base year would be more realis­ ment of State commissions on hospital tive to contain costs on their own, with­ tically set as that accounting year which budgets to prospectively review the budg­ out the retroactive penalties proposed ends after September 30, 1976, thereby ets of hospitals within a State. I am by the administration's bill. Under my insuring that no hospital would be held proposing this substitute approach be­ proposal any hospital which was able to revenue and volume levels set so far cause only a program instituted at the to remain within the prospectively ap­ in the past that compliance with the State level can achieve the level of speci­ proved budget would be allowed to re­ program would necessitate drastic reduc­ ficity necessary to insure that the desired tain the surplus generated and use it tions in service; level of efficiency is achieved while in­ for improvements in the care provided Phase-out of duplicative services and suring that quality of care is main­ by the hospital. I believe that it makes facilities would be encouraged through tained. sense to provide hospitals a clear goal, insuring that volume increases associ­ Mr. Speaker, let me make it clear that thereby allowing them to make adjust­ ated with a shared-service agreement this should not be an issue of Federal ments as the year progresses. would be added to the base-year volume versus State power; the important point In addition, my proposal would in­ of the hospital providing the service is the ability of State and local officials sure that cooperative effort necessary to while the hospital discontinuing the serv­ to institute selec-tive and cooperative ap­ strengthen and improve our health care ice would not be penalized by having the proaches to the problem of spiraling system became a reality. The relation­ difference subtracted from its base-year hospital costs. We must also keep in ship between budget review and health volume; mind that cost containment is at pres­ planning would be enhanced through Hospitals in underserved areas would ent an art, not a science. Several cost­ memoranda of agreement covering data receive 100 percent of their average re­ containment methods have been em­ sharing, development of complementary imbursement per admission regardless ployed or are being developed by various guidelines and procedures, and financial of changes in the number of admissions. States. My proposal provides the flexi­ feasibility review of capital expenditures In contrast, the administration proposal bility, and the oversight, to insure that by the budget commission. Similarly, would reduce revenue by 50 percent for all of the viable methodologies are ex­ PSRO and budget commission efforts numbers of admissions higher than 102 amined, and that each State could de­ would be coordinated in order to assure percent of the base year admissions; velop a system that would be most con­ that budget commission decisions did Each hospital's allowable rate of in­ sistent with its needs. not adversely affect quality of care and crease would at least be equal to the Many States have already taken the that duplication of data collection did Consumer Price Index; and lead in developing creative cost-con­ not occur. Funding to hospitals which constitute tainment systems designed to meet their This legislation also would improve the national health resource centers such as State's special needs and problems. Con­ ability of health planners and PSRO's the Mayo Clinic, the Lahey Clinic, and necticut, Maryland, Massachusetts, New to carry out the tasks they have been the Cleveland Clinic, would be assured. Jersey, New York, and Washington al­ assigned. PSRO review would be extend­ Mr. Speaker, I believe that the ap­ ready have instituted cost-containment ed to all patients, not just medicare and proach embodied in my bill would achieve systems through regulatory agencies. medicaid patients. The State health our goal of an efficient, effective, high­ Sixteen other States have instituted planning and development agency would quality health-care system while bring­ some form of cost containment or are in be provided with the authority to de­ ing spending under control. I like to the process of development. Maryland's clare services and facilities surplus or think that it attacks the complex prob­ system has saved an estimated $55 mil­ unnecessary, and Federal funding would lem of out-of-control health-care spend­ lion over 2 years, while Connecticut has be authorized to finance the costs of ing with a scalpel instead of a meat saved its taxpayers over $30 million. decertification. cleaver. For while we try to control the Most importantly, a cost-containment Other key elements of the operation financial aspects of our health-care sys­ system must be based at the State level of State commissions as laid out in my tem, we must keep in mind that our goal because the other components of an ef­ bill would be: is insuring that every American has ac­ fective cost-containment system, health Flexibility in the selection of a pro­ cess to medical care at a reasonable, af­ planning and utilization review, have spective budget review methodology; fordable cost. We will not reach that goal already been instituted at that level. It Uniform definition of reimbursable by needlessly crippling our existing hos­ is crucial to the success of a cost-con­ costs; tainment system to have the planning Public disclosure of hospital budgets pital system. activities of the health system agencies­ and administrative salaries; I realize that a cost-containment pro­ HSA's-and the State health planning Enhanced grouping of hospitals based gram, such as I am proposing, which and development agencies-SHPDA's­ upon case mix, size, type, and other f ac­ builds upon the strengths of the State linked to the budget review process. It is tors; and local level will take time. But the just as crucial to link the utilization re­ Requirements that hospitals submit payoff in terms of a coordinated, bal­ view and quality assurance activities of long-range capital plans and capital anced approach to cost-control will ben­ the professional standards review orga­ budgets to state commissions and to efit our entire health-care system. I of­ nizations-PSRO's-to the budget review health planning agencies-SHPDA's­ fer this proposal for the perusal of my process. Only through linking these or­ and distinguished colleagues and hope that ganizations, as proposed by my bill, can Provisions for Federal oversight of they will consider this alternative care­ we implement a coordinated system State budget review. fully. which deals with all of the factors lead­ In addition to these elements, the leg­ ing to spiraling increases in health-care islation which I am introducing acknowl­ KENNEDY CENTER BENEFITS THE costs. It would be impossible to link these edges that it will take time to develop ENTIRE NATION programs if a major pa.rt of the overall State programs, and that not every State system was based in Washington. will wish to participate. For this reason Under my proposal each State would my proposal would direct the Secretary HON. ELLIOTT H. LEVITAS be encouraged to establish a State com­ of HEW to develop a permanent program OF GEORGIA mission on hospital budgets with the for those States which do not have a IN THE HOUSE OF REPRESENTATIVES Federal Government paying the start­ State commission on hospital budgets. It up costs. The commissions would review would also create a transitional program Tuesday, August 2, 1977 hospital budgets in advance to insure similar to one in the administration's Mr. LEVITAS. Mr. Speaker, one of the that they represented reasonable expen­ plan, with certain exceptions designed to best things that has happened to Wash­ d:i.tures. Broad participation in the re­ reduce the inequities inherent in the for­ ington in recent years was the opening view process would be assured through mula approach. of the Kennedy Center. It is more than a August 2, 1977 EXTENSIONS OF REMARKS 26243 static monument to a President. The Na­ national capital. Government appropriations citizens who fit none of those categories. tion built a living memorial to a great were ma.de which, together with private con­ They, no less than the aftluent of Washing­ man, a memorial which has been enjoyed tributions, paid the construction b111. ton, have reason to be glad that such a Because 17 mlllion persons have visited the place exists. by millions. center since then, and continue to do so at Unfortunately, an erroneous assump­ the rate of almost 14,000 each day, the Park tion about who really benefits from this Service bears the principal cost of maintain­ living tribute is prevalent. It is some­ ing and policing it, as it does in the case of times, though wrongly, believed that the other national memorials. HELPED JOHNSON STEAL 1948 Kennedy Center caters solely to the Second, the center is considerably more ELECTION, TEXAN SAYS tastes of the rich and prosperous. than an entertainment center for the Each time we need to appropriate aftluent. HON. DELBERT L. LATTA moneys for the Center's emergencies or Since 1971, 600,000 half-priced tickets have upkeep, we hear this totally misleading been made available to students, the elderly, OF OHIO the handicapped, mmtary personnel, and IN THE HOUSE OF REPRESENTATIVES charge. It took us 3 years to appropriate citizens of low income. These have not been the money to fix the leaking roof-and throw-away tickets to poor shows; it ls the Tuesday, August 2, 1977 we ended up having to spend far more center's pollcy to provide them consistently, Mr. LA'ITA. Mr. Speaker, the July 31, than originally necessary just because of whatever the box-oftlce situation. Their 1977, edition of the Toledo Blade carried the shortsightedness displayed on this monetary value to the users, and their cost the Associated Press story by James W. very matter. Some might say Congress to the center, was nearly a mlllion dollars. Mangan giving us-at long last-the did not have enough sense to get out of In the 1976 fiscal year, the center spon­ sored 1,500 free events. They included chil­ details-from a participant-surround­ the rain in time on this occasion. dren's theater-in an effort to stimulate ing the mysterious addition of some 200 For the benefit of all the Members who quality in such productions across the coun­ votes to Mr. Johnson's vote total in box have reservations about appropriating try; concerts in the Grand Foyer; symposia, 13 to give him a Senate seat in 1948. The funds to keep this national treasure in films and exhibitions. The Christmas festival most incredible part of this story is the good working order, as well as for those of free music costs the center $75,000 an­ fact that it took 29 years for our free­ who understand what the Center does for nually. In each of the past few years the center has mounted festivals in honor of a but liberal dominated-press to get Luis our Nation's Capital and our Nation but single great composer-Haydn and Handel Salas' own story into print. I know that would like to see it in print, I am insert­ so far. Brahms to come. Each costs the center many will try to explain away the delay ing an article by Harry McPherson, the about $100,000. by saying that Luis Salas just decided general counsel to the Kennedy Center, Since the center receives no perforilling to "talk" to which I say, "Hogwash." If from the Washington Star of July 17, arts subsidy from the government, these he talked today, he would have "talked" 1977. I call it to the Members' attention events-and others that cannot begin to pay yesterday. The article follows: as an explanation of the millions of peo­ their way even with high ticket costs, such as grand opera-must be underwritten by 29-YEAR-OLD CASE REVIVED-HELPED JOHN- ple, not just well-to-do residents of SON STEAL '48 ELECTION, TEXAN SAYS the returns from profitable shows. So the Washington, for whom the Center is a occasional "Pippin" or "Annie" makes pos­ (By James W. Mangan) generous benefactor, public forum, &.nd a sible the production of Monteverdi operas ALICE, Tex.-A former Texas voting oftlclal center of artistic, dramatic, and musical and plays for children--and, hopefully, of seeking "peace of Illind" says he certified delight. another successful musical that will put the enough fictitious ballots to steal an election The article follows: next round of free and adventurous offer­ 29 years ago and launch Lyndon Johnson on ings on the boards and in the halls. a path that led to the presidency. KENNEDY CENTER: NOT JUST FOR THE RICH There is stm more to be done that can­ The statement comes from Luis Salas, who (By Harry McPherson) not be entirely financed this way. A musical was the election judge for Jim Wells Coun­ Last Sunday, The Star carried an article theater lab has been created on the top floor, ty's notorious Box 13, a precinct in Alice, reprinted from The New Republic, contend­ where new productions can be tried out be­ which produced just enough votes in the ing that the Kennedy Center is run "mainly fore small audiences, and without the exor­ 1948 Texas Democratic primary runoff to for the prosperous, the chic and the power­ bitant costs that deny most of them even a give Mr. Johnson the nomination, then tan­ ful." This must come as a surprise to those look on the commercial stage. The cost to tamount to election, to the U.S. senate. who regularly attend performances at the the center wm run about $200,000 annually. "Johnson did not win that election; it center. Either Stephen Chapman, who wrote Nearby, a Perforilling Arts library w111 soon was stolen !or him. And I know exactly how the article, is wrong, or there are many more be opened, stocked with 5,000 volumes from it was done," Mr. Salas said. Now a lean, such people around than one had supposed. the Library of Congress, and connected with white-haired 76, he was then a swarthy 210- More than eight million persons have at­ the main library by an information retrieval pound political henchman with absolute say tended theatrical and musical events at the system. It will give the center and visitors over vote counts in his Hispanic south Texas center since it opened in 1971. to it the research arm it has lacked so far. precinct. The thrust of Chapman's piece is that the Behind and above the Eisenhower stage, The controversy over that runoff election Kennedy Center, ostensibly a national insti­ a new Studio Theater wlll be completed has endured !or nearly three decades, ever tution supported by federal funds, ls in fact within a year or so. The Japanese have made since U.S. Supreme Court Justice Hugo offering high-priced entertainment to the it possible, with a Bicentennial gift to Black abruptly halted an investigation, but well-to-do of Washington. Thus "the lower America. In this versatile setting, the kind the principals have been sllent. George B. orders" (sic) elsewhere are subsidizing the of performance that cannot be mounted now Parr, the South Texas polltical boss whom extravagant tastes of this area's "Who's in the large halls-experimental plays, re­ Mr. Salas served :for a decade, shot himself citals by lesser-known artists, and the llke-­ to death in April, 1975. Mr. Johnson ls dead, Who." wm have a home. Many things might be said about this, and so ls his opponent. Mr. Salas, retired Private contributions wm be needed to :from his railroad telegrapher's job, is among beginning with references to the state-sup­ help support the Studio Theater, the musi­ ported theaters, opera houses, and concert the few living persons with direct knowledge cal theater lab, and other public service of the election. halls of Europe and the Soviet Union, and programilling in the center. A number of ending with the perilous economics of the corporations and foundations have already LADY BIRD INFORMED performing arts here and throughout the provided generous subsidies :for particular Mr. Johnson's widow, Lady Bird, was in­ country. But I shall limit this reply to a shows-including the annual College The­ formed of Mr. Salas' statements and said few facts, not included in the article, about ater Festival-and a corporate :fund has through a spokesman that she "knows no the Kennedy Center itself. been created, with a goal of $1 milllon more about the details of the 1948 election First, the trustees of the center-princi­ annually, to sustain the effort. other than that charges were made at the pally Roger Stevens-have raised $35 m1111on So with the government's help in bulld­ time, carried through several courts, and from private sources to help build and oper­ ing and maintaining it; with quite substan­ finally to a justice at the Supreme Court." ate the place. When it was originally con­ tial private contributions; with the profits Only now has Mr. Salas agreed to tell hls ceived in the 19505, the notion was that it from its own successful productions; and full version of what happened. In his soft, should be entirely financed by private funds. with the determination of Roger Stevens Spanish accent, he said he decided to break In 1964 the Congress determined otherwise. and its trustees, the center has become, in his silence in quest of "peace of mind and to The center would be a "living memorial" to a little more than five years, an enterprise reveal to the people the corruption of poll­ President Kennedy-by which was meant of considerable value to the capital--and tics." that it would be more than a shrine for to the nation. The "prosperous, the chic Mr. Salas says now that he lied during an visiting, but a platform !or the continuous and the powerful" do in fact attend its pro­ aborted investigation of the election in 1948, production of the performing arts in the grams. But so do far greater numbers of when he testified that the vote count was 26244 EXTENSIONS OF REMARKS August 2, 1977 proper and aboveboard. "I was just going betically, "as though they had walked in to executive director of the Consumer Pro­ along with my party," he says. vote alphabetically.'' tection Board of the State of New York, He told the Associated Press that Mr. Parr He also said that the two men didn't I submit the following resolution, en­ ordered some 200-odd votes added to Mr. bother to disguise their handwriting, and the acted on July 6-7 by the National Johnson's total from Box 13. Mr. Salas said 200 signatures looked as if they had been Association of Consumer Agency he saw the added fraudulent votes, and then written by only two persons. "The lawyers certified them as authentic on orders from spotted it right away, they sure did.'' Administrators: Whereas, consumer interests have been in­ Mr. Parr. The AP interviewed everyone connected The final statewide count, including Box with the case still alive to corroborate Mr. adequately represented within the Federal 13 votes, gave Mr. Johnson an 87-vote margin Salas' story. One man who got a brief look at government and consumers have conse­ in a total tally approaching one million and the Box 13 vote tally in the original inves­ quently suffered economic and physical earned him the tongue-in-cheek nickname, tigation was former FBI agent T. Kellis Di­ harm, and Whereas, there has been a seven-year effort "Landslide Lyndon." brel, who confirmed Mr. Salas' statement that the last 200 votes were in alphabetical to enact into law the bill to create the REPRESENTED "NEW" DEMOCRATS order. Agency for Consumer Protection, which Texas Democrats were split in 1948. Mr. "It stuck out like a sore thumb," Mr. would begin to rectify the inadequate repre­ Johnson, then 39, a congressman, represented Dibrell said. "Also, the last 202 names were sentation of consumer interests before deci­ "new" Democrats in his bid for the U.S. Sen­ made with the same colored ink, and in the sion-making bodies of the Federal govern­ ate. His primary opponent was Coke R. same handwriting, whereas the earlier names ment, and Stevenson-60 years old, three times Texas in the poll list were written by different indi­ Whereas, the President of the United governor, never beaten, and the candidate viduals and in different color inks." States has stated his intention to sign the of the "old" wing of the party. They called Six days after the runoff, with Mr. Steven­ bill to create an Agency for Consumer Pro­ him "Calculating Coke." son still holding a narrow lead in the state­ tection, and The vote in the July primary was Mr. wide count, a second telegram was sent, Whereas, there exists in Congress a stale­ Stevenson 477,077, Mr. Johnson 405,617. But changing Jim Wells County's vote to: John­ mate between the two houses over which a third candidate, George Petty, siphoned off son 1,988, Stevenson, 770. house should be the first to consider the bill enough votes to deny Mr. Stevenson a ma.­ Mr. Johnson gained 202 votes; Mr. Steven­ during this session, and jority, forcing a runoff between Mr. Steven­ son 1. They came from Box 13. Whereas, this stalemate works to the detri­ son and Mr. Johnson, set for Aug. 28, 1948. The next day, the official statewide vote ment of this critical legislative proposal; In the interim, Mr. Johnson intensified his canvass gave Mr. Johnson 494,191 and Mr. now, therefore, it is campaign. One of the places he went stump­ Stevenson 494,104. Resolved, That the National Association of ing was the hot, fiat, brush country of south Mr. Stevenson protested. Mr. Johnson said Consumer Agency Administrators calls upon Texas, George B. Parr country, where the that if Mr. Stevenson had evidence, it was the leadership of the House and Senate and Hispanic vote seemed always to come, favor­ his duty to go to a grand jury. "I know that the chairmen of the appropriate committees ing Mr. Parr's candidate, in a bloc. I did not buy anybody's vote," Mr. Johnson in both houses to resolve this stalemate so Mr. Salas said he was Mr. Parr's righthand said. that this landmark legislation will receive its man in Jim Wells County from 1940 to 1950. Mr. Stevenson went to federal court in fair day on the floor of both houses o1 "HAD LAW TO OURSELVES" Fort Worth and, on Sept. 14, Judge T. Whit­ Congress. "We had the law to ourselves there" Mr. field Davidson signed a temporary restrain­ Salas said. "We had iron control. If a man was ing order forbidding certification of Mr. opposed to us, we'd put him out of business. Johnson as the Democratic nominee. The THE ADMINISTRATION REQUESTS Parr was the godfather. He had life or death judge ordered an on-the-spot investigation BREEDER STUDY, THEN IGNORES control. of voting in Jim Wells County. RESULTS "We could tell any election judge: 'Give us BLACK HEARS JOHNSON PETITION 80 per cent of the vote, the other guy 20 per The same day, in Washington, U.S. Su­ cent.' We had it ma.de in every election.'' preme Court Justice Black agreed to hear Mr. HON. OLIN E. TEAGUE The night of the runoff, Jim Wells Coun­ Johnson's petition to lift the injunction. Mr. OF TEXAS ty's vote was wired to the Texas Election Johnson's attorney was Abe Fortas, in later IN THE HOUSE OF REPRESENTATIVES Bureau, the unofficial tabulating agency; years a Johnson appointee to the U.S. Su­ Tuesday, August 2, 1977 Johnson 1,786, Stevenson 769. preme Court. MEETING CALLED AFTER RUNOFF Mr. Stevenson was in Alice that day; Mr. Mr. TEAGUE. Mr. Speaker, before the Three days after the runoff, with Mr. Ste­ Johnson was on President Harry S. Truman's Carter administration announced its venson narrowly leading and the seesaw campaign train in Texas. Also on the train new energy proposal in April, President count nearly complete, Mr Salas said, a that day, according to Mr. Salas, were Mr. meeting was called in Mr. Parr's office 10 Parr, who had received a presidential pardon Carter and Dr. James Schlesinger di­ miles from Alice. Mr. Salas said he met with from Mr. Truman in 1946 after serving nine rected ERDA to conduct a review of the Mr. Parr; Mr. Johnson; Ed Lloyd, a Jim Wells months on an income-tax conviction, and liquid metal fast breeder reactor pro­ County Democratic Executive Committee Mr. Lloyd. gram, in general, and the Clinch River member, and Bruce Ainsworth, an Alice city Mr. Salas told the AP he was summoned breeder reactor plant project, in par­ commissioner. Mr. Lloyd and Mr. Ainsworth the next day by Mr. Lloyd and told: "Luis, ticular. The information obtained from are now dead. everything is all right. We talked to Truman this review was to be considered in for­ Mr. Salas told the AP: on the train. Don't worry a.bout the investi­ mulating the administration's new en­ "Lyndon Johnson said: 'If I can get 200 gation.'' ergy policies. ERDA appointed a steer­ more votes, I've got it won.' Two days later, Justice Black, in an order "Parr said to me in Spanish: "We need to he dated himself in longhand, voided the ing committee of 12 persons with widely win this election. I want you to add those temporary injunction against putting Mr. different views both about nuclear en­ 200 votes.' I had already turned in my poll Johnson's name on the ballot and ended the ergy and the breeder program to conduct and tally sheets to Givens Parr, George's investigation. Justice Black said, "It would be the review. brother. a serious break with the past" for a federal Of the twelve members on the steer­ "I told Parr in Spanish: 'I don't give a court to determine an election contest. ing committee, eight members or two­ damn if Johnson wins.' Mr. Stevenson had lost; Mr. Johnson had thirds of the group considered that the "Parr then said: 'Well, for sure you're going won. information and experience that will be to certify what we do ' That ended Mr. Stevenson's political ca­ gained from building the Clinch River "I told him I would, because I didn't want reer. He retired to his hill country ranch, in­ sisting until he died in 1975 that the election breeder reactor now is urgently needed. anybody to think I'm not backing up my They also concluded that deferral of party. I said I would be with the party to had been stolen from him. Mr. Johnson be­ came a power in Congress, and 15 years later Clinch River will not inhibit the possi­ th ~ end. After Parr and I talked in Spanish, Parr told Johnson 200 votes would be added. he was president. bilities of proliferation of nuclear weap­ When I left, Johnson knew we were going to ons. When the steering committee com­ take care of the situation." CONSUMER PROTECTION Mr. Sa.las said he saw two men add the pleted its work, the administration chose names to the list of voters, about 9 o'clock RESOLUTION to ignore the majority opinion of the at nii;i:ht, in the Adams Building in Alice. He group and contradictory to this opinion, said the two were just following orders and recommended that Clinch River be in­ he would not identify them. HON. EDWARD W. PATTISON OF NEW YORK definitely postponed primarily because it NAMES ADDED ALPHABETICALLY would contribute to the proliferation of Mr. Salas said the 200 names were taken IN THE HOUSE OF REPRESENTATIVES nuclear weapons. from the poll-tax list and belonged to peo­ Tuesday, August 2, 1977 I wish to insert several passages from ple who didn't vote in the primary. He said he objected because the two men were sign­ Mr. PATTISON of New York. Mr. the report written by the eight majority ing the names on the voting sheet alpha- Speaker, on behalf of Rosemary Pooler, members and ask my colleagues to care- August 2, 1977 EXTENSIONS OF REMARKS 26245 fully consider their conclusions before million tons include possible and speculative the best method of conducting this the upcoming vote on the Clinch River resources yet to be located. study, I am reporting to the House on project: Other groups reviewing this pivotal ques­ the progress which has been made to PROLIFERATION tion of future uranium supply (specifically the recent Ford Foundation Report) sug­ date on this matter. The need to minimize the potential for gest that much more uranium can be found I directed the Architect of the Capitol proliferation of nuclear weapons and the investigate existing capabilities of the diversion of fissile materials which could re­ at economically and environmentally accept­ to sult from the use ot all types of reactors is able costs. They have used the same basic Energy Research and Development Ad­ recognized as an urgent requirement for the data on uraniam availability, but are more ministration, General Services Admin­ willing to gamble on future discoveries than istration, and any other Federal agency continued deployment of nuclear energy and we think prudent for the necessary assur­ as an essential element for breeder systems. ance of the nation's future energy supply. to see if one or more of these agencies To be effective, controls and agreements must They present no substantive argument to possess the capability of conducting the be acceptable both to supplier nations and support their approach with its higher esti­ study. I also inquired of the Architect users and be compatible with the self-inter­ as his in-house capability to conduct ests of each. The United States cannot uni­ mates. to laterally create such agreements nor by itself CLINCH RIVER BREEDER REACTOR the study. determine the type and pace of develop­ We come now to the consideration of the The Architect has since reported to me ment of breeders and their necessary fuel Clinch River Breeder Reactor. After review­ that no Federal agency contacted would cycles. ing a.gain its aims and objectives, its value be able to conduct the study without en­ Some members of the Committee hold the in the demonstration of integrated breeder gaging an architect/engineering consult­ technology, and also its value as a focus for view that diversion o! fissile material within ing firm to develop the necessary engi­ the United States can be controlled based on the overall breeder program, we conclude experience with safeguarding large quantities such a demonstration project is essential to neering evaluations and to prepare the of fissile material since 1944. Guarding and realizing the Breeder option. We can find final report. The Architect further points controlling entry to fuel cycle facilities, guard no basis for challenging the fundamental out that while members of his staff and device protected shioments, careful real­ validity of its original objectives; our review possess the necessary expertise, the staff time accountabllty, and supervised resident resulted in a strong reaffirmation of these members are completely occupied with inspectors will reduce this diversion risk to objectives. ongoing responsibilties. The Architect acceptable levels. This risk can be further We conclude that a demonstration plant of therefore concludes that it will be neces­ reduced by coprocessing, by isotopic dilution the approximate size of CRBRP is necessary where applicable, and by ma.king the fresh and that the CRBRP objectives are appro­ sary for him to retain an architect/ fuel sufficiently radioactive to deter would-be priate to that demonstration plant. The de­ engineering consulting firm with exper­ diverters with a significant radiation hazard. sign basis is current. The LMFBR program tise in solar energy installations. Fissile material of superior quality can be is not constrained forever to use all of the I have suggested to the Architect that produced by methods not dependent upon specific !eatures and functional characteris­ he proceed apace with the study so that breeder and nuclear power reactors, using Pu tics included in CRBRP. Different reactors of the fast type will be built; all will benefit the required report can be made avail­ as fissile material. There are at least six such able to the House as soon as possible. For approaches to methods that are not subject from the CRBR proof-of-breeding and opera­ to safeguards. Even with breeders or other tion and many improvements will be a. result the information of my colleagues I am Pu producing power reactors, a nation could of tests performed during its 30 year life­ inserting a letter from the Architect of elect to use one or more of these options be­ time. In an evolving technology, it is not the Capitol dated June 30, 1977, in which cause they are more efficient, less costly, in­ possible for any one demonstration to be to­ he discusses the events leading to his volve less difficulty internationally and a.re tally prototypic of the future. Much has al­ conclusion in favor of employing a con­ capable of producing fissionable material in ready been learned from the design. Even sultant firm and the methodology of though changes for optimization a.re possible e. comparable period of time to diverting conducting the study and preparing the plutonium from power reactors. and as suggested by critics, desirable, the in­ final report. TIMING OF THE BREEDER OPTION formation and experience gained soon is urgently needed. I have directed my staff to work close­ The urgency for the breeder is the second We conclude that the CRBRP is a necessary ly with the Architect insure the best major question which we asseEsed. Our con­ to and essential step in development of the possible administration of the funds pro­ clusion is that there is urgency to develop LMFBR energy option. the breeder option, and that the development vided for in H. Res. 322. I am confident should neither be interrupted nor delayed that the Architect of the Capitol will pre­ until the next century. The argument, re­ pare a report which will enable us to de­ viewed and again endorsed in this study, can termine the wisest course of action on be stated in summary as follows: The dimin­ CONGRESSIONAL USE OF the question of solar energy in the House ishing domestic supplies of oil and gas to­ SOLAR ENERGY office building complex. gether with probable restrictions on the rate at which coal can be mined, shipped and THE ARCHITECT OF THE CAPITOL, burned place constraints on the use of these Washington, D.C., June 30, 1977. HON. HAROLD T. JOHNSON Hon. HAROLD T. JOHNSON, fuels for the generation of electricity. Nu­ OF CALIFORNIA clear power supplied by light water reactors Chairman, Committee on Public Works and, prior to breeders will place heavy demands on IN THE HOUSE OF REPRESENTATIVES Transportation, U.S. House of Repre­ sentatives, Washington, D. c. our domestic reserves and resources of nat­ Tuesday, August 2, 1977 ural uranium. If 1200 gigs.watts of total DEAR MR. CHAIRMAN: At a recent meeting electrical generating capacity is required (a Mr. JOHNSON of California, Mr. between Messrs. Dawson and Evans of your midrange estimate in this study) in 2000, Speaker, on May 17, 1977, the House staff and Mr. J. Raymond Carroll, Director of 400 to 500 gigawatts may be nuclear. This passed House Resolution 322, a resolu­ Engineering for this office, the procedures nuclear caua.city will require, over their op­ to be followed to assist in the timely prepa­ tion directing the Architect of the Capi­ ration of the feasibility report as required by erating lifetime of 30 years 2,000,000 to tol conduct a feasibility study and 3,000,000 tons of natural uranium, which may to House Resolution 322 were discussed. Mr. come close to exhausting our uranium sup­ report on using solar energy in the heat­ Dawson expressed your desire that the En­ ply and limit our ability to expand produc­ ing, cooling, and hot water systems of ergy Research and Development Administra­ tion. The breeder option should therefore be the House office building complex. This tion and the General Services Administra­ available for deployment, if needed, by the resolution authorizes the Committee on tion be contacted to determine if they have 1990's. Public Works and Transportation to in­ the capability of conducting this study for The present pace of breeder development cur expenses for studies and investiga­ the Architect of the Capitol or in some other and demon!';tration, through the CRBR way coordinating and cooperating in its tions not in excess of $50,000 in order to preparation. demonstration, wlll meet the option date. carry out the provisions of House Reso­ This position is based on the following esti­ Mr. Carroll called Mr. Henry H. Marvin, lution 322 in support of the Architect. Director, Division of Solar Energy, Energy mates of domestic uranium reserves and re­ These expenses are to be paid out of the sources, expressed as short tons of U 0 b. Research and Development Administration 3 House contingent fund on vouchers sub­ and Mr. Charles C. Law, Acting Assistant Probable maximum: 3.7 million tons. mitted by the Architect signed by me and Commissioner for Construction, Public Prudent planning base: 1.8 to 2.0 million approved by the Committee on House Buildings Service, General Services Admin­ tons. Administration. istration and determined that, in each case, This estimate recognizes that our known these agencies are interested in assisting in reserves total about 680,000 tons and that the Knowing of the interest of my col­ the review process but they would have to reasonable probable resources might add 1.1 leagues in the House on this important engage an Architect/Engineer consulting million tons to this figure. Their sum is our study and in response to questions which firm for the purposes of developing the suggested prudent planning base. The 3.7 were raised during the ftoor debate as to necessary engineering evaluations and to 26246 EXTENSIONS OF REMARKS August 2, 1977 prepare the final report. Members of my staff (From the Milwaukee Journal, July 23, 1977) The system makes sense and obviously also have the necessary expertise but they BOOST FOR YOUNG HOME BUYERS would enable more young couples to meet are completely occupied with their on-going The old rule of thumb on what you can mortgage payments on homes they otherwise duties relating to the large construction pro­ afford in home buying is out the window. If could not possibly afford. Such mortgages gram that presently exists in the Capitol you really stuck to paying no more than 2 Y:i would be insured by the Federal Housing complex. Therefore, as stated in our testi­ times annual income, choice would be quite Authority. Interest rates would probably be mony during the hearings on this Resolu­ limited. Last year, only a quarter of Ameri­ a little higher, but the facts are that with tion, in order to insure that the report is can fam111es could afford to buy a median a conventional mortgage, most couples can't available within the time frame designated, priced house. So, millions are spending more afford a home. we propose to retain an Architect/ Engineer on housing than they can afford. The second phase of the legislation ls de­ consulting firm with experience in solar en­ How are they doing it? Some trade up, ap· signed to help young people accumulate a ergy installations to assist us in this regard. plying inf!a.tion-swollen equity from the sale down payment. They would be allowed to Naturally, the work of the consulting firm of one house to the purchase of another save up to $2,500 per year, tax free, if it is wm be under the direct supervision of this Others divert money they invested in the deposited in an Individual Housing Account office, specifically under the direction of Mr. stock market or elsewhere into their home, (IHA) . The money would be a. tax deduction Carroll, and we are prepared to recommend buying a house as much for anticipated fi­ for that year. The interest earned by the one of the available consulting firms with nancial gain as for shelter. And a good many IHA, which has a. limit of $10,000, also would experience in this specialized field for this others simply are spending a great deal more be tax free. purpose. than ever on housing. Often this causes a Kasten explained that a portion of that Also, to provide Mr. Carroll with assistance ripple of other decisions, such as postponing tax revenue would be recovered when the in this unique area of engineering, we pro­ or even forgoing children. home is sold. The amount of the down pay­ pose to retain the services of an internation­ In a Baltimore suburb, two young couples ment would be deducted from the original ally known scientist Dr. Stanley H. Gilman, are trying to beat high housing costs by buy­ price of the home, leaving the seller with a Professor, Pennsylvania State University, ing together. Their loan application has large capital gains tax liab111ty. currently Chairman of the Solar Energy been pending more than a month, hung The plan would be limited to first-time Committee of the American Society of Heat­ up on credit risk questions surrounding the home buyers, thus minimizing the oppor­ ing, Refrigerating and Air Conditioning unorthodoxy of two unrelated fam111es shar­ tunities for abuse. With the price of an aver­ Engineers and the principal researcher of an ing ownership. The couples are aware of age home expected to be about $90,000 in on-going solar energy project sponsored by tensions inevitable in the arrangement, but less than 10 years some help for young the Energy Research and Development Ad­ they insist compromises will be worth it. couples is needed. The Young Fam111es Hous­ ministration in Albuquerque, New Mexico. Neither couple could afford a house alone. ing Act of 1977 is a workable answer. His involvement will be primarily oversight But most fam111es do not relish communal on the final report and input on instrumen­ living. Nor ls everybody willing to skip child [From the Wausau Daily Herald, July 27, tation which might be installed for purposes bearing for a house. And for struggling young 19771 of developing and documenting useful in­ renters, other options -are not even possible. KASTEN'S PROPOSAL-HELP YOUNG BUY A formation for future projects. They don't have a house to trade up or in­ HOME I shall, of course, be pleased to cooperate vestments to juggle. Rep. Robert Kasten, R-Wis., has come up with you and your staff to insure that the These young people need help-the kind with a bold and innovative proposal which final report satisfies the purpose of the provided in legislation introduced by Rep. could assure home ownership for a higher Resolution. Robert Kasten (R-Wis.) . The bill would al­ percentage of young fam111es in the future. Cordially, low first-time home buyers to save for a The proposal should be given very serious GEORGE M. WHITE, FAIA, down payment in a tax-free savings account. considers. ti on. Architect of the Capitol. They could deduct from taxable income up Kasten's bill would allow prospective first­ to $2,500 a year (maximum of $10,000) . A time home buyers to save for a down pay­ saver would have to use the account for a ment on a home without paying federal taxes down payment on a first home or return the on the income from the savings account. WISCONSIN NEWSPAPERS SUPPORT tax break. When the home was sold, the gov­ Young people eager to save up enough for a THE YOUNG FAMILIES HOUSING ernment could recapture some lost tax rev­ down payment would be able to deduct up ACT enue by imposing a capital gains tax on an to $2,500 a year from their taxable income amount equal to the down payment ac­ for deposit in this savings account. Thus, count-if the money was not reinvested in a they would also save the taxes on this por­ HON. ROBERT W. KASTEN, JR. house. tion of their income. But the savings ac­ OF WISCONSIN Extending this help would be costly. One count would be limited to $10,000. estimate-considered low-is $591 million the Under the proposal, to qualify for the tax IN THE HOUSE OF REPRESENTATIVES first year. And perhaps some who really would breaks, the young family would have to use Tuesday, August 2, 1977 have no trouble buying would take advan­ the savings account for a down payment on tage. But for moderate income fam111es the their first home. If they did not, they would Mr. KASTEN. Mr. Speaker, since my tax break could make the difference between have to belatedly pay the federal taxes thBt introduction of the Young Families buying now and renting forever. they avoided by starting the savings account. Housing Act, I have been pleased to see Home ownership has been a. stab111zing Later on, If the family sold the home, the the favorable response it has generated force in America.. Everybody benefits when government could recoup the lost tax reve­ in Wisconsin. The bill is designed to young fam111es have a. stake in communities. nue, or at least some of it, by assessing a bring the goal of home ownership back And an increased market for buyers might capital gains tax on an amount equal to the also stimulat,e home building, adding jobs amount that had been in the savings ac­ within reach of the average American, that replenish lost tax revenue. Kasten's bill count for the down payment. However, if the especially the thousands of young people deserves support. proceeds from the first home were invested wishing to buy their first home. in another home, then no belated taxes As an editorial in the Milwaukee Jour­ (From the Sheboygan Press, July 14, 1977) would be paid. nal noted: "The old rule of thumb on HELP FOR HOME BUYERS The cost to government would be consid­ what you can afford in home buying is The cost of new homes has been rising at erable, of course. It is estimated at $600 mll­ out the window." Mv bill is a practical an annual rate of 9.4 percent and that of lion for the first year. But the plan could response to that problem. It would per­ existing homes at a rate of 10.7 percent. To­ make home ownership possible for thousands mit a first time home buyer to save for day, the average price of a new home is of young fam111es which are unable to save $51,600. Obviously most young couples have a down payment under today's economic a downpayment on a home through a been priced out of the market. They are de­ stress. tax-free savings account. It would also nied the American dream of owning a home. Home ownership has been a great blessing provide for graduated monthly mort­ Congressman Robert Kasten of Brookfield for the fam111es of America. The commu­ gage payments which would more close­ and Senator Edward Brooke of Massachusetts nities with high home ownership are tradi­ ly reflect a family's income growth over are sponsoring two-pronged legislation to al­ tionally the most beautiful, the most crime­ the duration of the mortgage. leviate the problem. It is the Young Families free and the best places to live. This b1ll I would like to share with my col­ Housing Act of 1977. could extend home ownership in all com­ leagues editorial reaction to the Young The first phase would provide for an ac­ munities across the country. celerated mortgage payment system. During In add!";ion, the spin-off effect on the Families Housing Act. Accordingly, I the first mortgage years the payments would home bullding industry could be remark­ would like to have inserted in the REc­ be as low as possible. The payments would able. The plan could boost home building, ORD recent editorials from the Milwaukee increase during the term of the mortgage. provide many new jobs in construction and Journal, the Sheboygan Press, and the The presumption is that the family's income stimulate the nation's economy. This is an Wausau Daily Herald: would also increase. idea whose time has come. August 2, 1977 EXTENSIONS OF REMARKS 26247 PROBABLE EFFECTS OF COAL CON­ to use those fuels which the · United The tax on the use of natural gas in Tiers 1 States has in greatest abundance. and 2 is determined on a variable tax basis. VERSION ON THE NORTHEAST Industrial process use will be exempt from AND MIDWEST Through revised tax policies and regu­ the tax when the use of fuels other than oil lation, owners and operators of new and or natural gas would materially and adversely existing powerplants and major fuel­ atlect the manufacturing process, and the HON. STEWART B. McKINNEY buming installations are encouraged to use would not be economically or environ­ OF CONNECTICUT use coal, wastes, synthetic fuels, and mentally feasible. IN THE HOUSE OF REPRESENTATIVES energy from renewable resources as their An exemption from the tax will be avail­ Tuesday, August 2, 1977 primary energy source. Many owners and able to nonindustrial uses for oil and natural operators are already committed to gas in residential fac1llties, in transporta­ Mr. McKINNEY. Mr. Speaker, Presi­ tion (including pipellnes), on a farm for greater use of coal in the future. The farming purposes, in nonmanufacturing com­ dent Carter, in his April 20, 1977, mes­ National Energy Act legislation is di­ sage to the Congress, submitted a propo­ mercial bulldlngs, and in the exploration, rected to those who are not. development and production of crude oil and sal aimed at reducing consumption of natural gas. petroleum, converting from oil and nat­ As a. result of the House Ad Hoc Com­ mittee on Energy meetings of July 20 to 011 and natural gas will be exempt if used ural gas to coal as an energy source, and in a fac1llty which ls precluded from using increasing domestic supplies of energy. 22, the following is a. summary of the tax coal by state or federal air pollution regula­ These proposals are designed to reduce and regulatory policies. Exemptions to tions. The first 50,000 barrels of oil (or BTU imports of crude oil from a potential 11.5 these regulations include those facilities equivalent) used by all businesses to which million barrels a day to 7 million barrels where coal conversion would cause ad­ the tax applies is exempt from taxation. verse environmental impacts, where it is where the tax places an individual plant at a by 1985, with 53 percent of this savings competitive disadvantage in its region, the attributable to the substitution of coal economically or technically infeasible to secretary of the Treasury may provide addi­ for oil and gas. convert, where the coal supply is unre­ tional tax exemptions. The coal conversion program has been liable, or where the reliability of service ECONOMIC IMPACTS described as the keystone of the effort provided w011ld be impaired. The Northeast and .Midwest states contain 41 % of all industrial bollers in the U.S. over REGULATORY POLICY lOOmm BTU/hr. (approximately 1700 boilers) mostly in the food, paper, steel and cheinicals Physical charact;P,ristics of fac111ty Prohibitions industries. Boilers using lOOmm BTU/hr. ( lOmw) considered "small." "Large" boilers On-line Major fuel-burning are those using 300mm BTU/hr or more status Type of fac111ty Electric power plants installations (30mw). Existing bollers and some non­ bollers between 10mw-30mw may be required New All ballers Cannot use all or gas to convert; those over SOmw will have to con­ as fuel source vert to coal. All new ballers over lOmw must Non peakload Cannot use oil or gas Not applicable burn coal. as fuel source The House Commerce Committee unsuc­ Single unit with fuel Cannot use all or gas Cannot use all or gas cessfully attempted to shift the burden of burning capabllity as fuel source as fuel source proof for coal conversion from energy users greater than 100 back to the government. Under the existing milUon BTU's/hour FEA conversion program, the burden falls on Multiple unit with Cannot use oil or gas Cannot use oil or gas FEA to prove that a plant should convert. combined fuel burn­ as fuel source as fuel source However, the National Energy Plan shifts the ing capabllity greater burden back to the user. Under the Carter than 250 milllon program, FEA will stlll have to prove the BTU's/hour economic feasib111ty of conversion. Existing Petroleum fired as of Cannot use natural gas The Northeast and Midwest, areas which Aprll 20, 1977, or as fuel source after will contain the largest number of firms re­ capable of burning 1990 or in greater questing exemptions for environmental, eco­ coal/all or coal/gas relative proportion nomic, or technical reasons, will bear the mixtures costs of proof of the ab111ty to convert. Coal capable May be required to The economics of coal conversion are such revert to coal that a firm which is applying its oil and gas Single unit with fuel Cannot use oil or gas Some with fuel burning user tax rebates to the capital costs of con­ burning capablllty as fuel source capabllity less than verting one boiler will need to pay user taxes greater than 100 mil­ 300 Inilllon BTU's/ on six other bollers of equivalent size. For lion BTU's per hour hour may be pro­ example, a 25mw boiler consuming 255,000 hibited from using barrels of oil per year would pay $2.7 mllllon oll or gas in user truces from 1979-1985 1f it used the Single unit with fuel cannot use all or gas Cannot use all or gas full amount of oil each year. The costs of burning capablllty as fuel source as fuel source replacing a boiler of that size have been greater than 300 Inil­ estimated at $10 mlllion and the cost of air lion BTU's per hour, pollution control equipment at $5 milllon; or multiple unit with thus, the cost of replacing a 25mw oil-burn­ !uel burning capa­ ln~ baller ls $15 Inilllon, compared to a $2.7 bllity greater than Inillion user tax rebate. As the number of un­ 250 mlllion BTU's converted, oil-fired bollers declines for any per hour one firm, the incentive for conversion of the remaining bollers declines, since user true Tax policy for business use of oil and gas rebates are reduced. The capital costs for coal conversion of a lOmw boiler are less in absolute dollars than Tax on natural gas for a larger boiler, but proportionately the (per milllon) Tax on oll (per barrel) conversion costs more. A new lOmw coal­ burning boiler costs $5 mlllion; scrubbing (Tier 3) (Tier 1) (Tier 2) (Tier 3) equipment costs $3.2 mlllion. A decline in Year electric conservation conversion electric boiler size of 60 percent, from 25mw to lOmw, of use utlllties tier tier ut111ties yields a 46 percent decllne in conversion costs. Small businesses with few botlers will 1979 ------None $.30 $.30 None find the costs of conversion hardest to bear. 1980 ------None .60 .60 None Ballers which were designed for coal or 1981 ------None 1.00 1.00 None which have burned coal in the past will be 1982 ------None 1.00 1.45 None cheaper to convert to coal from oil than 1983 ------•. 55 1. 00 2.00 $1. 50 boilers without the design capablllty; how­ 1984 ------. 65 1. 00 2.50 1. 50 ever, a problem common to all firms located 1985 or in densely populated metropolitan areas of thereafter----- . 75 1.00 3.00 1.50 the Northeast and Midwest wlll be the lack of additional space on-site for coal handllug, 26248 EXTENSIONS OF REMARKS August 2, 1977 storage and waste disposal. If such space once states in the nation, and these, in addition ished products which can be used for coal existed around a. plant site, it is probably to Indiana and Michigan, rank in the top shipments. occupied now. six coal consuming states. The region is pri­ Spokesmen from both the transportation Air pollution control equipment and dis­ marily served by three railroad companies, and industrial aspects agree that in the posal of accompanying sludge will be major all of which are in the top seven coal haul­ Northeast-Midwest Region transportation of expenses for businesses in the Northeast and ers which handle 85 percent of the coal. the coal will not be the problem, but rather Midwest; this equipment will put these states The Norfolk & Western and the Chesapeake on-site storage of the coal will create one of at an economic disadvantage if scrubbers or & Ohio are financially sound companies and the major challenges of the coal conversion best available control technology (BACT) according to an official from the Association program. are not required nationwide on all new fa­ of American Railroads, they will be able to In an effort to resolve this problem, some of cilities and on existing facilities which con­ handle any increased coal traffic that results the region's railroads are investigating the vert to coal. Presently, the National Energy from the coal conversion provisions of the potential of regional distribution centers for Plan calls for BACT on all new boilers over proposed energy plan. The railroads have the New England states to address the stor­ 30mw (in 1979 for industry, in 1984 for util­ been gearing up for additional coal hauling age problems and increase the efficiency of ities). since the time of Project Independence. Be­ delivering coal to those states. These cen­ Mixtures of coal and oil for other fuels tween 1972 and 1973, coal traffic increased ters would be located once the coal market can be burned in "coal-capable" boilers o1 15 percent and in the following years, the is fairly settled and would be equipped with any size. Coal-oil mixtures may be useful to railroads have demonstrated that they a.re modern unloading equipment. Since many businesses in the Northeast and Midwest capable of responding to new demands for parts of the New England system is not cap­ where total conversion to coal is not possible coal. The Administration's plan calls for an able of handling 100-ton hopper cars, which due to environmental regulations or eco­ annual 8 percent increase in coal utilization a.re used for bulk coal transportation, coal nomic constraints. A 33 percent coal/67 per­ which the railroads feel quite confident in would be carried by 50 or 70-ton cars to the cent oil mixture contains approximately 1 easily handling. individual business or, preferably, to indus­ percent sulphur. It would permit combustion The third major railroad is the Consoli­ trial parks, Regional distribution centers without scrubbers in many areas, and would da.ited Railway Corporation (ConRa.11) which would provide a close and steady supply of permit conservation of oil. is comprised of several bankrupt rail lines in coal to users and perhaps could be an ele­ Most electric utilities in the Northeast and the Northeast now receiving federal grants ment of the regional energy development Midwest abandoned plans for new oil or gas­ and loans. The ConRa.il lines are in the midst corporations, as proposed by the Conference fired facilities several years ago, turning in­ of a ten-year, $6.5 billion rehabilitation pro­ of Northeast Governors (CO NEG) . creasingly to coal, nuclear and hydroelectric gram which will greatly improve the rail Reliance on coal as a fuel source for steam power. The National Energy Plan assumes service to the Northeast. The ConRa.ll lines that the additional capital costs of convert­ electric plants in relation to oil and gas had been the trouble spot in the Northea.st­ use in coalition States L-1967-72 ing existing oil and gas generating facilities Midwest rail system, but with the guarantee to coal and installing scrubbers will be offset of the federal money and certainty of a. mar­ [In percent] by reductions in future capital needs due ket, ConRail officials also feel that they will to load management and conservation pro­ be able to deliver increased a.mounts of coal Percent grams. The net effect of the National Energy within their region. Region 1967 2 1972 3 change Plan on total electric utility capital re~uire­ The general reaction by the railroad com­ England _____ ments by 1985 is predicted to be negligible. panies to President Carter's Energy Proposal New 40.4 5.2 -87.1 MOVING THE COAL is positive since they have already prepared Mid-Atlantic ---- 68.6 50.7 -27.4 One aspect of the coal conversion pro­ for more coal hauling because of the uncer­ East North gram is transportation, and the ma.in re­ tainty of oil and gas supplies. The Northea.st­ Central ------96.4 91. 5 -5.1 gional issues deal with the capabilities of Midwest Region, has in the pa.st, used rail­ West North the regional system to adequately handle roads as the primary mover of coal for both Central ------55.5 64.7 +16.6 Coalition totaL ___ 77.9 68. 1 -12.6 increased coal traffic and assessing whether inter- and intra-state deliveries. Larry Kauf­ totaL ______the costs of transporting coal to new mar­ man, manager of media. relations in the Asso­ U.S. 63.9 54.3 -14.4 kets will increase to the point of threaten­ ciation of American Railroads, states that he 1 Information was provided on a. regional ing these businesses' competitiveness. sees no problems with the railroads meeting basis only. The West North Central Region For the most part, railroads will be relied the demands for coal through the gas and oil consists of the Coalition States of Iowa. and upon to move coal within the region. Na­ replacement program. Ea.stern railroads will Minnesota, in addition to Missouri, North tionally railroads handled 66 percent of the be more easily able to handle increased coal and South Dakota, Nebraska. and Kansas. coal tonnage in 1974, while barges, the sec­ traffic than western rail companies because 2 Percent coal use in 1967. ond largest coal transporter, hauled a.bout the Ea.st has been used to shipping coal and 3 Percent coal use in 1972. 11 percent. Diesel trucks, which a.re used for has the physical equipment needed. Carter's short distance trips ranging from 50 to 75 plan puts a. greater reliance on Eastern coal Source: The National Coal Association, miles, carried 11 percent, and conveyor belts, and Western coal through the provisions 1974-1975 Coal Facts. pipelines and private carriers took care of which require desulfuriza.tion equipment on ENVIRONMENTAL IMPACTS the rest. all new coal burning facilities, which in turn, Tlle effect of the coal conversion program Barge travel is the least expensive means makes Ea.stern high-sulfur coal competitive upon air quality as measured in 1975 in the of transporting coal. Barge per ton-mile with Western low-sulfur coal. This increased Northeast and Midwest, according to EPA, transportation costs range between 0.3 cents coal market will serve to improve the rail­ is to reduce particulates, to increase sulfur and 0.4 cents, while rail averages 1 cent per road system in the Northeast-Midwest Region oxide emissions in some regions while re­ ton-mile of coal and diesel truck costs a.bout for all commodities while other regions first ducing it in others, and to increase nitrogen five cents per ton-mile. Costs for barge ship­ of all must put much capital investment into oxide emissions. The following tables com­ ment are low because longer distances a.re their systems just to handle coal. This will pare both the entire National Enere:y Plan involved. Barges have economically served not be a. problem for them, however, since and the coal conversion program to 1975 levels areas along the Allegheny, Ohio, Mononga­ they have the financial resources to make the of emissions. While the coal conversion pro­ hela. and Illinois Rivers and the Great Lakes, adjustment. gram contributes to increased emissions, the but barge travel remains second to rall be­ Transportation costs will not present much load management and conservation policies cause of its limitations. Modern unloading of a. problem to the smaller businesses in the in the remainder of the NEP cause a. de­ facilities cost millions of dollars and are region. Although they may not be currently crease in total fuel consumption and there­ needed in many of the region's ports. Delays receiving coal, many industries and utilities fore a. reduction in combustion-related a.re caused by inadequate lock systems and have rail service for raw materials and fin- emissions. barges can only serve industries along navi­ gable waterways. Non-waterfront areas will Changes in emissions from 1975 to 1985 due to coal conversion have to look to different modes for their de­ liveries of coal. [In percent] The rail system has traditionally been the primary coal trans_porter and a fairly exten­ Particulates so2 N02 sive system of trackage still exists. Although many lines have been abandoned, especially New England ------4 +42 +9.3 in recent yea.rs with increased industrial use New York, New Jersey ______-12 +2 +11.6 of oil and gas, the railroads still handle the Pennsylvania, Maryland, District of Columbia., majority of the coal tonnage. Three of the Delaware, Virginia, West Virginia. ______-23 -3.5 +18.6 region's states, Pennsylvania., Ill1nois and Wisconsin, Michigan, Ohio, Illinois, Indiana __ _ -14 -7.7 +21 Ohio, a.re in the top five coal-producing -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ August 2, 1977 EXTENSIONS OF REMARKS 26249 Changes in emissions, 1975-85, due to National Energy Plan tionally, without the application of the [In percent] shelter deduction to eligib111ty a huge "notch" effect is created. That "notch", which serves to cut people off the program Particulates abruptly once their income exceeds the eligibility level, creates a major work dis­ -8.7 +17.7 incentive. It should be noted that in both New York,England New ------Jersey ______+4.6 -12 -6.6 -.8 the House and Senate bills all other deduc­ Pennsylvania, Maryland, District of Columbia, tions are applied in determining initial eligi­ Delaware, Virginia, West Virginia ______-23 -7.6 +13 bil1 ty. The Senate bill does apply the shelter Wisconsin, Michigan, Ohio, Illinois, Indiana __ _ -16 -15 +15 deduction for that purpose as well. We sup­ port the Senate position on this issue and urge that it be adopted in conference. Combustion sources such as industrial and tion is allowed which would normally ac­ The second issue is that of indexing the utility boilers now account !or 37 percent of company moderate, well-controlled growth. shelter deduction to the Consumer Price In­ particulate emissions, 80 percent of S0 emis­ 2 Class III Deterioration of air quality is dex. Traditionally, elements of the food sions, and 50 percent of N02 emissions. The allowed up to the National Ambient Air stamp program have been tied to a cost of reduction in particulates is dependent upon Quality Standards. living indicator. This year's House and Sen­ a higher level of compliance with state and Local governments can take steps to ate bills continue the application of this federal standards for this pollutant instead change the classification of an area. Whether important principle. The standard deduction, of the present widespread non-compliance. or not coal conversion would violate stand­ the allowance for work related expenses, and The increase in nitrogen oxide emissions is ards for any area would have to be deter­ the allotment scale of benefits are all de­ attributed to general growth and the lack of mined on a case-by-case basis. signed to respond to increases in the cost-o!­ highly effective control technology !or this living. Clearly, the shelter deduction also pollutant. ought to be indexed. I! the cost of fuel and It is important to understand the assump­ AGRICULTURE ACT CONFEREES shelter continues to skyrocket, as it has in tions under which EPA is working because URGED TO ADOPT TWO CRUCIAL recent years, the failure to ind~x will result failure to meet these assumptions will have FOOD STAMP AMENDMENTS in a loss of $60 million in benefits to re­ a large effect on total level of emissions. The cipients during the life of the program. assumptions are: Therefore, we urge you to support the House All existing facilities comply with the emis­ HON. EDWARD I. KOCH provision which indexes the shelter deduc­ sion standards in State Implementation tion to the Consumer Price Index. Plans by 1985; OF NEW YORK IN THE HOUSE OF REPRESENTATIVES We hope that you will support the Senate BACT for S02 will require scrubbers on all provision to utilize the shelter deduction in boilers of 25mw or greater; Tuesday, August 2, 1977 determining eligibility and the House pro­ Revised New Source Performance Stand­ vision which indexes the shelter deduction to ards for boilers of 10-25mw will be 1.5 lbs. Mr. KOCH. Mr. Speaker, the House the Consumer Price Index. S02/mmBtu; and Senate conferees are continuing Sincerely, BACT applies to new utility boilers after their deliberations on the 1977 farm Edward I. Koch, Michael Harrington, 1984; new industrial boilers after 1979; and bill. That bill includes major amend­ Frank Horton, James L. Oberstar, The National Energy Plan will be imple­ ments to the food stamp program. Don.aild M. Fraser, Elizabeth Holtzman, mented as proposed. There are two issues of particular im­ Silvio 0. Conte, Tom Harkin, Charles The assumption of compliance with State portance to people who live in high B. Rangel, Stephen J. Solarz, Shirley Implementation Plans is particularly ques­ Chisholm. tionable, considering that a December, 1976 shelter cost areas of our country. Thirty­ Cardiss Collins, William R. Cotter, Nor­ survey of Air Quality Control Regions with nine bipartisan Members of the House man E. D'Amours, Robert F. Drinan, national ambient air quality standards of Representatives sent a letter to each Stanley N. Lundine, James H. Scheuer, showed that violations for one or more pol­ of the conferees urging that the confer­ Bob Traxler, Matthew J. Rinaudo, Mi­ lutants still exist in at least 160 of the 247 ence adopt both the Senate position chael T. Blouin. air quality control regions and that 75 per­ which utilizes the shelter deduction in Jonathan B. Bingham, Lindy Boggs, cent of all AQCRs had not attained the determining eligibilty and the House pro­ William M. Brodhead, Harold C. Hol­ mandated standard for at least one con­ lenbeck, James M. Jeffords, Joseph A. trolled pollutant. AQCRs include the most vision which indexes the shelter deduc­ Le Fante, Matthew F. McHugh, Parren heavily industrialized and densely popu­ tion to the Consumer Price Index. The J. Mitchell, Melvin Price, Henry s. lated sections of the country. States are faced adoption of these two amendments in Reuss. with the choice of either complying with the conference will mean that 150,000 high Stewart B. McKinney, Andrew Maguire, law and cutting off economic growth and shelter cost households will not be Ralph H. Metcalfe, William s. Moor­ opportunities for additional employment on deemed ineligible for food stamps and head, Richard L. Ottinger, Fernand J. many of their impacted areas, or permitting that eligible recipients will not be subject St Germain, Paul E. Tsongas, Lucien new industrial construction which would N. Nedzi. Joseph S. Ammerman, Mem­ violate the law. to a reduction in benefits due to sky­ bers of Congress. EPA believes that industrial growth in a rocketing fuel and shelter costs. For the non-attainment area need not be halted so benefit of our colleagues, a copy of the long as the net total of the new emissions letter which was sent to the conferees together with the additional reductions from follows: THE TECHNOLOGY BEHIND existing sources does not exacerbate the cur­ HOUSE OF REPRESENTATIVES, NUCLEAR PROLIFERATION rent violations of ambient standards and Washington, D.C., August 1, 1977. will, instead, contribute to reasonable prog­ DEAR CONFEREE: We the undersigned Mem­ ress toward attainment of these standards. bers of Congress would like to bring to your HON. GEORGE E. BROWN, JR. FEA's Project Independence report sug­ attention two food stamp issues of crucial OF CALIFORNIA gests that pollution increases resulting from importance to recipients living in high shel­ plants converting to coal may not occur in ter cost areas. IN THE HOUSE OF REPRESENTATIVES the immediate vicinity of the plant but in The first issue is the matter of applying Tuesday, August 2, 1977 distant regions, mainly in the Northeast and the shelter deduction in determining eligi­ Midwest, as a result of prevailing winds. bility as well as benefit levels. The shelter Mr. BROWN of California. Mr. Speak­ EPA's Prevention of Significant Deteriora­ deduction is designed to take into considera­ er, the magazine Chemical and Engineer­ tion regulation is designed to prevent deteri­ tion those who are burdened by higher fuel ing News ran an article in their July 25 oration of air quality in those areas where and shelter costs. However, the House ver­ issue entitled "The Technology Behind the existing quality is currently better than sion of the bill does not utilize the shelter Nuclear Proliferation." The article pro­ that required by the National Ambient Air deduction in determining eligibility. This vides a detailed account of the various Quality Standards. Under this regulation a has the effect of cutting 150,000 households three-category classification system is estab­ out of the food stamp program, a significant paths to a nuclear weapon. For example, lished for areas subject to the program. An portion of the very households that stood if a country has a civilian power pro­ allowable incremental increase in ambient to benefit from the shelter deduction. The gram with plutonium recycle, then "it particulate and sulfur dioxide is established shelter deduction must be utilized to deter­ will find the material (for nuclear wea­ for each category. The categories are as fol­ mine eligib111ty as well as benefit levels so pons> ready at hand at the output end lows: that recipients in high cost areas will not of its reprocessing plant." If the coun­ Class I Only small increased pollution is be eliminated from the program simply be­ try does not possess a commercial pluton­ allowed. cause the shelter deduction was not avail­ ium reprocessing plant, then there are Class II A large level of increased pollu- able to them in computing e11gib111ty. Addi- other paths to obtaining nuclear weap- 2625.0 EXTENSIONS OF REMARKS August 2, 1977 different problems: National proliferation says Jim Cubie, a plutonium expert for New ons. However, these alternate paths re­ happens when a nonnuclear weapons state Directions, a new citizens action group. quire considerably more time and effort acquires those weapons; subnational, or ter­ But an embargo on reprocessing tech­ to develop. Quoting Albert Wohlstetter: rorist, prolifertalon would happen if a clan­ nology would not necessarlly stop prolifera­ If one already has paid for an electric destine group ever acquired a bomb. A sover­ tion. Even if N didn't already have a reproc­ power reactor, the relevant economic figure eign nation, with its comparatively large re­ essing plant, it could build one of its own. ls not the total but the marginal, or extra, sources and the power to operate freely in For example, India's "peaceful" atomic cost to get the bomb material given the fact its own territory, clearly has many more nu­ bomb, tested on May 18, 1974, utllized plu­ that one has paid for the reactor .... Even if clear options available than even the largest tonium bred in a Canadian-built research (the spread of nuclear weapons) were, as it ls terrorist group. reactor and purified in a reprocessing plant claimed, inevitable sooner or later, later Considering the national proliferator, it's built by the Indians themselves. would be better than sooner, and less better possible to imagine that sometime in the The currently used Purex process for plu­ than more. 1980's a large and reasonably stable develop­ tonium extraction ls straightforward and The article follows: ing nation acquires facillties for the com­ well known. The spent fuel elements first THE TECHNOLOGY BEHIND NUCLEAR plete nuclear fuel cycle, including uranium­ are chopped up and dissolved in nitric acid. PROLIFERATION fueled light water reactors (LWR's), a ura­ The resulting liquid, which ls highly radio­ The realities of bomb-making and the nu­ nium enrichment plant, and a spent fuel active from the presence of fission products, clear fuel cycle constrain the politics of reprocessing plant. (Breeder reactors may not then ls mixed with trlbutyl phosphate, an become commercial before the turn of the organic solvent. The uranium and plutoni­ proliferation; at the heart of the issue ls century. In any case it would not change um ions migrate into the solvent, while the plutonium matters very much; more than enough plu­ fission products stay put. After the fission (By Mitch Waldrop) tonium already would be moving through products are removed, an oxidation process "A serious risk accompanies the world­ the LWR cycle.) The nation already has had precipitates the plutonium from the sol­ wide use of nuclear power-the risk that considerable experience in nuclear matters; veilit as plutonium nitrate, leaving the urani­ components of the nuclear power process wlll for more than two decades it has operated um in solution. be turned to providing atomic weapons ... a research reactor supplied by the U.S. as In a practical plant, things are compli­ [therefore) we will defer indefinitely the part of the "Atoms for Peace" program. cated by the intense radioactivity of the commercial reprocessing and recycling of the Moreover, U.S. universities have trained sev­ spent fuel, the toxicity of plutonium, and plutonium produced in the U.S. nuclear eral dozen native nuclear physicists and engi­ the danger of its forming a critical mass. power programs . . . [and] we wlll restructure neers. But these are an problems that the engi­ the U.S. breeder reactor program to give A few years after the nuclear fuel cycle be­ neers of N could overcome by using remote greater priority to alternative designs of the comes operational, the leaders of this coun­ control and concrete shielding and by de­ breeder, and to defer the date when breeder try decide, for whatever reasons of national manding careful technique from the oper­ reactors would be put into commercial use." security or international prestige, to ac­ ators. -President Jimmy Carter, April 7, 1977 quire nuclear weapons. Since at this point in Plans for the Allled-General Nuclear Serv­ Jimmy Carter ls not a man to duck con­ world history there are N -1 countries with ices Barnwell reprocessing plant have been troversy, and this time he has stirred up nuclear bombs, call this country the Repub­ widely distributed and are available in the plenty. The immediate issue ls Congress' at­ lic of "N." Nuclear Regulatory Commission's public tempt to defy Carter and fund the demon­ The political decisions having been made, document room. According to OTA, all the stration breeder reactor at Clinch River, the technical problems begin. First, where equipment needed to build such a plant ls Tenn., and the Allled-General Nuclear Serv­ can N obtain fissionable material? Congress' available on the world market. OTA says ices fuel reprocessing plant at Barnwell, S.C. Office of Technology Assessment, in its new that the cost of a scaled-down and simpli­ But Clinch River and Barnwell are only sym­ report "Nuclear Proliferation and Safe­ fied mllltary version of such a plant, though bols in a larger and older debate. The ques­ guards," concludes that a country like N difficult to estimate, would range from $10 tion ls plutonium, and its role in an en­ would have two basic choices: uranlum-235 mlllion to $70 milllon. As few as 10 to 20 ergy-starved world. and plutonium-239. Uranlum-233, created by skllled and experienced engineers would be To proponents of nuclear power, plutonium bombarding thorlum-232 with neutrons, also needed to direct the project. ls a potent nuclear fuel, delivering 10 mil­ may become a possibllity if thorium breeders Nuclear power advocates sometimes say lion kwh of heat energy per lb. Reprocessing ever become widespread. Most other fission­ that, even if potential proliferators like N plants such as that at Barnwell would re­ able isotopes, such as neptunlum-237, exist couldn't use the plutonium anyway. The cover hundreds of pounds of the element in such minute amounts that they are not a stuff ls "denatured," they say, hopelessly from the spent fuel of present-generation problem. fouled with the nonflsslle isotope pluto­ uranium reactors. By the end of the cen­ Looking first at plutonium, then, N's scl­ nlum-240. (India was able to sidestep this tury a new generation of breeder reactors -entists can consider three basic routes. They problem.) such as the one proposed at Clinch River can bulld a so-called dedicaited fac111ty, de­ Unfortunately, this argument overstates would produce plutonium by the ton. The voted solely to the production of material the case. True, a bomb made from reactor­ payoff, say breeder advocates, would be an for nuclear weapons. They can buy plutoni­ grade plutonium could have a very unpre­ almost limitless supply of nuclear fuel, and um on the black market. Or they can divert dictable yield. But it stlll would be a bomb, a world free from energy worries for a long, plutonium from the clv111an nuclar fuel and with enough sophistication in its manu­ long time. cycle. facture it could be a m111tarlly significant To critics of the program, however, plu­ "Trying to divert nuclear power plant bomb. tonium also ls the stuff of atomic bombs. fuel into weapons production ls the most Consideration of reactor physics shows If breeders and reprocessing plants are built expensive, clumsiest, dangerous, and in­ where the HOPu comes from. Fuel in the worldwide, critics warn, the plutonium they efficient way for any nation to make a weap­ core of a nuclear reactor ls awash with neu­ produce could prove an irresistible tempta­ on," says Rep. Mike McCormack (D.-Wash.), trons. Uranlum-238 nuclei can absorb these tion for smaller countries that desire the one of the staunchest Congressional sup­ neutrons and, after some internal commo­ power, prestige, and influence that comes porters of the breeder concept. tion, become fissionable 2:111Pu. When struck with owning a nuclear arsenal. Worse, a well­ Opinions on this differ, however. Albert by a second neutron, these nuclei most organized terrorist group conceivably could Wohlstetter, in a recent Foreign Policy ar­ likely wlll split apart, participating in the fashion stolen plutonium into its own atomic ticle, writes: "If one already has paid for chain reaction (in fa.ct, toward the end of bomb. The payoff, say plutonium critics, an electric power reactor, the relevant eco­ a fuel element's lifetime in the core, its would be a world more vicious, dangerous, nomic figure ls not the total, but the mar­ newly created plutonium ls contributing al­ and unmanageable than ever before. ginal, or extra, cost to get the bomb material, most half its power). But 2311Pu could ab­ And so it goes, with the nuclear industry's given the fact that one has paid anyway for sorb that second neutron and become 2&0Pu. ad men prophesying doom if civ1llzation re­ the reactor . . . getting a significant quan­ Being nonfissile, this isotope builds up. mains breederless. and Rolling Stone writing tity of rather pure plutonium would involve Since the fuel in a power reactor ls left in darkly of plots, deals, and a plutonium black some fuel and operation cost, but these as long as possible to maximize burnup, the market. The truth, if such a thing exists, would be small by comparison with the ex­ spent fuel comes out with rou~hly 20% of seems lost in a fog of unanswerable what­ pense of a program to produce and separate its plutonium in the form of 2'°Pu. In prin­ lf's and maybe's. plutonium exclusively for weapons." ciple a bomb engineer could devise some But however fractious and tangled the Assuming, then, that N does decide to isotopic separation procedure to remove the' politics of proliferation may be, they are con­ use fuel-cycle plutonium, it wlll find the 2'°Pu, but this would be extremely expen­ strained by the technological realities of material ready at hand at the output end sive. Jn practice, he would have to use the bomb-making and the fuel cycle. Without of its reprocessing plant. This ls why critics material as ls. trying to guess at the unknowable, then, pro­ see the export of commercial reprocessing The most obvious problems caused by liferation can be considered from the stand­ plants to nonnuclear nations-as West Ger­ 2toPu also are the most trivial; being more point of what ls and isn't technically possi­ many already has promised to do for Brazll­ radioactive than pure 2:111Pu, it requires ble. as a real and present danger to world sta­ somewhat heavier shielding. And being First, what does the word proliferation blllty. nonftsslble, it dilutes the fissionable 219pu mean? As it ls often used, it blurs two very "We might as well sell them the bombs," and requires the use of a somewhat larger August 2, 1977 EXTENSIONS OF REMARKS 26251 critical mass. (The figures quoted for plu­ ucts and 1s of very high quality for use in Taylor conclude that theft of plutonium tonium's critical mass vary considerably, but weapons. In fact, it is from this type of re­ from the light-water reactor fuel cycle ls Princeton physicist Theodore B. Taylor gives actor that India obtained the material for essentially impossible except at the output 4.4 kg for pure 239Pu and 5.6 kg when it its nuclear explosion. end of a reprocessing plant and during trans­ is diluted with 20% 2f0Pu.) While part of N's weapons team is looking it to a fuel fabrication plant. Completed fuel But the most serious drawback is more into the plutonium alternatives, another assemblies, before being loaded into the subtle: 2'°Pu emits too many neutrons. To part would be investigating the uranium-235 reactor, also are vulnerable, though their create a nuclear explosion, one must some­ alternative. When enriched to 20% or more, weight would make them very difficult for how assemble a mass of nss1onable material this material makes a perfectly good bomb, thieves to handle. that is much larger than the critical mass, although it does have a somewhat larger Opportunities for theft in the liquld­ then keep it assembled long enough for the critical mass than plutonium. Taylor quotes metal fa.st breeder cycle parallel those in ensuing chain reaction to release a slgnifl­ 15 kg for tl).e pure isotope. But 23llU' makes up the light-water cycle, although the com­ cant amount of energy-before the material only 0.7% of natural uranium and at most 3 pleted fuel assemblies would contain a much blows itself a.part. (It will be seen that there or 4% of enriched light-water reactor fuel. higher concentration of plutonium. are at least two ways to do this.) If reactor­ For use in a bomb, it would have to be en­ Who would the thieves be? Assuming that grade material is used, the neutron flux riched stlll further, which for a nation like in many countries the safeguards and mate­ from 240Pu can ca.use the chain reaction to N would be a prodigiously difficult and ex­ rials accounting at nuclear facllities may be "preinltlate," or blow the mass apart before pensive business--at least using current somewhat lax, Wlllrlch and Taylor consider it ls fully assembled. The weapon's total technology. several posslbllities. A single employee of a yield thus will be smaller than it might be To date, the most widely used enrichment nuclear plant could do it, motivated by otherwise and will be much harder to pre­ method has been the gaseous d11Juslon proc­ greed or the desire to settle a grudge. He dict. According to OTA, the upper and lower ess, developed by the Manhattan Project in could then either sell the material on the statistical limits of yield likely would be World War II. Gaseous diffusion plants are black market or ransom it. Organized crime more than a factor of 10 a.pa.rt. huge, use sophisticated technology, much of also could be involved, either heisting the In short, the bomb could fizzle. which remains classifled, and require 11.n enor­ plutonium directly or operating as a middle­ N's bomb engineers could improve matters mous investment. A commercial plant typi­ man for the lone thief. It could deal in plu­ by careful design, but perhaps they would cally costs several billion dollars and con­ tonium much as it now deals in heroin. prefer to eliminate the problem entirely. By sumes 5 % as much electric power as its final The managers of a reprocessing plant also cycling fuel through a reactor at a faster product will generate. Although a dedicated might siphon off some plutonium in collu­ rate, for example, they could breed less plu­ mmtary plant could be considerably scaled sion with several employees. The plant's tonium of a better grade. (Plutonium con­ down and simplifled, stlll the costs likely physical safeguards thus would be side­ taining 7% or less 24°Pu is called "weapons would be too high for any but the largest stepped since the diversion could be made grade" in the U.S.) Wohlstetter cites an in­ and most developed countries to consider to look official. The managers would be aided cident in the early 1970's, in which leaking building one. further by its being impossible to know fuel rods forced Illinois' Commonwealth Edi­ Even so, it N's enrichment plant were of ahead of time exactly how much plutonium son to discharge the initial core ot its Dres­ this type it stlll could be converted to mili­ is in a given spent fuel rod. Small discrep­ den-2 reactor early. The rods contained 454 tary production. This would involve reassem­ ancies in the plant's plutonium inventory kg of 89 to 95 % pure 239Pu. To launch such a bling the entire plant, however, and also thus could be hidden within the uncertain­ program deliberately would involve a profli­ would be a very hard operation to keep ties of materials accounting. gate use of commercial fuel; but, Wohlstetter secret. Nevertheless, this is exactly what the Perhaps as likely as a !ull-fiedged black says, "since it is neither illegal nor uncom­ Chinese appear to have done, starting with a market, in OTA's judgment, is a "grey mar­ mon to operate reactors uneconomically, gov­ Soviet-supplied plant. ket." Here the transactions would be tech­ ernments may derive quite pure plutonium- But N's plant may use a newer technology: nically legitimate, but unacceptable to the 239 with no violation nor much visib1Uty." high-speed centrifuges, now undergoing pilot world at large. For example, if N had some N's most direct solution, however, would plant testing in the U.S. and Europe. Cen­ scarce resource such as oil, an industrial be to sidestep the commercial power cycle trltuge plants appear to be cheaper and more nation might be wllling to curry favor by entirely and do what the U.S. did in the efficient for a given amount of separative selling it a bomb. Manhattan Project: build a mUitary-style work and operable on a smaller scale. More­ In OTA's judgment the emergence of a dedicated reactor to produce pure 239Pu in over, OTA concludes that a centrifuge plant black or grey market would be a serious blow quantity. (Of course, N also would need to or even a small part of that plant could be to any hopes of containing proliferation. Not build a reprocessing plant.) According to converted into weapons production with rel­ only would nuclear material Bild the weap­ OTA, a good prototype for a dedicated re­ ative ease, and with a relatively small chance ons themselves become much more readily actor would be Enrico Fermi's 1942 Chicago of detection. available, but the mere existence of the Pile, which was fueled with unenriched nat­ With centrifuges, N also could divert some markets would make every nation nervous ural uranium, moderated with graphite, and fuel-grade uranium to a smaller dedicated about what its neighbors were up to-and cooled by air. The open literature contains plant, which would boost the concentration anxious to get a few fission bombs of its own plans for one such reactor-the Brookhaven of 235U to weapons grade. By tar the greatest just in case. Graphite Research Reactor-which could a.mount of energy expended in an enrich­ Ba.ck in the Republic of N, the scientists serve as a model. Operating between 1948 and ment plant goes toward raising the 235U con­ and engineers now must make a decision: 1957, this reactor annually produced about centration from 0.7% to 3%; using this ma­ How will they get their nuclear material? 9 kg of nearly pure 239Pu, enough for one or terial as a feedstock, however, only about 400 Should they build dedicated facllities, check two small bombs. OTA estimates that a sim­ centrifuges of European design would be the prices on the black and grey markets, or plifled version of this reactor could be built needed to produce 30 kg of 90% 235U per year. divert the material from the commercial today with as few as 10 engineers to design (A commercial fuel plant would contain fuel cycles? and oversee construction. Capital costs would a.bout 200,000 centrifuges.) Alas, this fable is like Frank Stockton's range from $10 mlllion to $30 million. The Other enrichment technologies, such as short story, "The Lady or the Tlger?"-it reactor could be ready for production about laser isotopic separation, are now years or doesn't have an ending. All the routes are three to four years from the beginning of decades from commercialization. But should at least conceivable, given the proper mix the project. they ultimately prove to be cheaper and sim­ of circumstances any one of them might As another route to pure 239PU, N could do pler than eXisting techniques, they also even be seen as the best. what India did and turn to its research re­ could prove to be very appealing to a country So, wlll the worldwide export of repro­ actor. In 1975 there were 39 countries, out­ such as N. cessing facllitles accelerate proliferation? side of the six nuclear weapons states, op­ Finally, there is one la.st option the leaders Untortunately--or fortunately-there are no erating one or more of these reactors. Many of N might consider. If their need tor weap­ data to go on. No nation-none that is ot these facllities were supplied by the U.S. ons is desperate, they could purchase plu­ known, at lea.st-has ever gone the diversion as part of the Atoms for Peace program be­ tonium, fissionable uranium, or complete route. But no one can be sure, really, that gun under President Eisenhower in 1953. The bombs on the black market. some nation, at some time, acting in woeful reactors were designed for such things as There is no nuclear black market known ignorance of the technological facts of life, nuclear physics experiments, radioisotope to be operating today, and it is very difficult miczht not try it. manufacture, and research in nuclear engi­ to assess the probab111ty that one ever will. Now, what about terrorists? neering. Fuel is stm supplied by the U.S. un­ The possibilities are endless, however, lim­ Of the options open to a sovereign nation der license. The U.S. also has trained a great ited only by one's imagination and paranoia. like N, the only one that seems feasible for many foreign nuclear physicists and engi­ OTA points out that the emergence of a a subnational group is the purchase of fissile neers over the years-more than 1000 from black market now is constrained by the lack material or finished bombs on the black mar­ India alone. of a supply of fissile material; widespread ket-if the group can afford it and if a From N's point of view the reactors would plutonium recycle could remove that con­ market even exists. Alternatively, a terrorist have another advantage. Some run on 80 to straint. group could attempt to steal some bomb ma­ 100% uranlum-235; others, called critical as­ Supplies for a black market would, of terial itself, either by infiltrating a nuclear semblies, run on pure plutonum at zero course, have to be stolen. In the 1974 book plant or by mounting an armed assault. power. According to OTA, this plutonium ts "Nuclear Theft: Risks and Safeguards," Suppose that a clandestine group does essentially uncontaminated by fission prod- authors Mason Willrich and Theodore B. manage to get hold of nuclear material. How 26252 EXTENSIONS OF REMARKS August 2, 1977 much time, money, and manpower will it Alternatively, the terrorists could try to could be lethal. Although no one would die ta.ke to turn that material into a functional convert the material to metal. They might for many years, the psychological impact bomb? Opinions vary. Some say a few hours even succeed, although reducing the oxide would be devastating-and psychological im­ or days. Taylor estimates that a "crude fission ls a. nasty business involving hydrogen pact ls of course what terrorists are after. bomb"-one that would have an excellent fluoride. But they had better have a lot of What can be done to stop proliferation? chance of attaining 100 tons' yield-could be extra material on ha.nd. Any mistakes could Probably nothing in the absolute sense. But built by a few persons, or even one person, result in a high loss of plutonium to residues, it may at least be possible to prevent a na­ within several weeks. E. M. Kinderman, man­ not to mention contamination from spills or tion or terrorist group from getting bomb ager of the Stanford Research Institute's even criticality accidents. (In a. criticality material through the fuel cycle. Center for Energy, ls less optimistic: "Five accident, the material "disassembles" itself, The obvious way to do this ls to follow to 10 people with $100,000 or so could do but more like soup bo1ling out of the pot President Carter's approach: no reprocessing the job if the people were both dedicated than like an explosive. The main effect would and no breeder. But that option may not to their goal and determined to pursue it be a. potentially lethal burst of gamma rays really exist. A reprocessing plant already ls over two years or more," he writes. "It ls likely and neutrons.) operating in France, and many nations are that the team will produce something with a Once the metal ls in hand, the group continuing to pour money into breeder re­ force equivalent to 50 to 5000 tons of TNT would be faced with a complex problem in search. Besides, Europe and Japan seem un­ (and it] will weigh less than 1 ton." metallurgy. Plutonium metal has four enchanted with the idea of staking their Without debating precise numbers, what crystalline forms, depending on temperature, energy futures on the uncertain supply of would a terrorist group actually have to do and casting it into shape ls a delicate and natural uranium. to make a very crude, "minimal" bomb? tricky business. The first several attempts But, assuming that reprocessing and the (This also ls the lower boundary on a na­ could easily fall; and ea.ch time inexperi­ breeder go forward, several things still can tional effort; but a nation probably would enced workers could lose up to 10 % of the be done. Terrorists, unpredictable as they have resources enough to make a far more plutonium in casting residue. If the metal may be, seem paradoxically to be the easiest sophisticated weapon.) were machined into shape, even more ma­ threat to defend against. For example, given It's easy enough to design a bomb. An un­ terial could be lost. Besides, since plutonium enough money, manpower, and imagination, dergraduate from Massachusetts Institute of ls pyrophoric, lathe turnings and such prob­ any given nuclear fac111ty can be garrisoned Technology did it a few years a.go for the ably would ignite in air. And, as if that against any credible armed attack. Some NOVA television program "The Plutonium weren't enough, the finished metal bomb critics wonder, though, if this can or will Connection." More recently Princeton under­ trigger would oxidize again in a few hours. be done at every fac111ty, especially if plu­ graduate John Phllllps did it for a. term Idea.Uy, work with plutonium metal should tonium goes into worldwide use. paper. Both used information available in be done in an inert atmosphere. More effective would be the oft-mentioned public libraries. If the group persisted in using plutonium "technical fixes," which would try to ensure A fission bomb produces an explosion by metal, its payoff would be a bomb that is far tha.t plutonium from a. reprocessing plant assembling fissile material into a supercritical more compact than an oxide device. (The never appears in a form that could be used mass. The OTA report outlines the two basic critical mass of reactor-grade plutonium ls by a. clandestine group-or for that matter ways of doing this. A gun-type device as­ only 5.6 kg.) By surrounding the material by the black market. Many of these meth­ sembles two or more subcritlcal pieces by with a layer of beryllium, which reflects ods were reviewed in the April 15 issue of use of gun propellants. The Hiroshima bomb escaping neutrons back into the fissile mass, Science. was a gun weapon. According to OTA, the the size could be decreased even more. One of them-"coprocesslng"-is a. minor velocities of assembly a.re high in everyday Cheaper but less effective reflectors would modification of the Purex process in which terms, but still so small that unless neutron be copper or steel. Use of plutonium metal the uranium and plutonium are not sepa­ background is low the explosive force will also would mean more of a bang for a given rated art; the end. They would be processed be essentially zero. As mentioned, "preinlti­ size and weight, since a bomb's yield depends directly to a. mixed oxide. ERDA currently ation" would blow the mass apart before on the degree of super criticality, and this, in favors this concept since it means that plu­ the chain reaction could proceed very far. turn, depends on using more than a single tonium would never exist as a separate entity For this reason, only metallic 235U ls a prac­ critical mass of material. anywhere in the fuel cycle. tical material for a gun-type weapon. Putting the bomb together could prove the A second alternative, now under study at A second method ls to assemble and com­ most dangerous activity of all. "Foolhardy," Battelle Columbus Laboratories, would make press a subcritlcal configuration of fissile the Energy Research & Development Admin­ stolen material not only difficult to handle material into a supercritical mass by use of istration calls it. The agency's fact sheet on but deadly. Through careful control of the high explosives surrounding the material. the hazards of such activities points out that oxidation states in the Purex process, long­ This type of "implosion" weapon was used at the conspirators would be assembling near­ lived actinides could be removed from the Alamogordo and at Nagasaki. Because the critical pieces of nuclear material, under waste stream and included in the uranlum­ substance ls compressed, less fissile material conditions where any miscalculation or mis­ plutonium mixture. This would make the ls needed to reach any given level of super­ take could lead to a criticality accident. Fur­ mix so radloactivf'I that it could be handled crlticality. Because the assembly is very thermore, the group would be working with only by special remote control equlpment­ rapid, material of higher neutron back­ high explosives, which in ERDA's words are clearly a difficult task for a. nonprofessional, ground can be used. Thus, weapon- or reac­ "basically treacherous." Even among experi­ clandestine group. tor-grade plutonium in metallic or non­ enced explosives handlers, says the agency, Neither of these fixes, however, would metallic form can be used, as can any form of accidents still sometimes occur. bother a national proliferator, which could 231iU or l.'33U, Supposing, however, that the terrorist just commandeer a reprocessing plant and Suppose, then, that the conspirators ha.ve group was successfully able to manufacture run it as the leaders chose. One scheme come up with a design for a weapon. A design a nuclear trigger and assemble a complete that might help discourage national activity on paper is only the beginning, as any engi­ bomb. How big a yield would it have? Not is the "denatured thorium cycle," proposed neer can attest. Now the bomb makers even the bomb makers themselves could by Theodore B. Taylor, Harold A. Felveson, actually have to make their bomb. predict, especially if reactor-grade plutonium Frank von Hlppel, and Robert H. Williams Assume that they are using plutonium were used and preinltlation were possible. in the December 1976 Bulletin of the Atomic (Which seems most likely; in any case, ura­ Taylor estimates that a crude fission bomb Scientists. nium would present many of the sa.me prob­ could yield the equivalent of anywhere from In their scheme, a. thorium breeder would lems) . Then, unless the workers are suicidal, 20,000 tons of TNT (the same as the Na­ create fissile uranium-233 from fertile thor­ they will have to wear gloves and respirators gasaki bomb) to 1 ton. A bomb on the low lum-232, much as an LMFBR creates fis­ at all times; not only is plutonium radio­ end of this scale is clearly more of a block­ sile 239Pu from fertile = u. active but Lts powdery oxide is extra.ordi­ buster than a strategic weapon. But as em­ Next, the 233U would be extracted at a re­ narily carcinogenic when inhaled. phasized in the recent controversy over the processing plant and "denatured"-mixed Depending on its source, the terrorists' neutron bomb, a nuclear weapon has a far with enough 238U to make it unusable for a plutonium could be in any of several dif­ more devastating effect than an equivalent bomb. In this form it still could be used as ferent forms: as a. nitrate, as an oxide pow­ amount of chemical explosive. Taylor and fuel in a conventional reactor, but re-ex­ der, or a.s solid fuel pellet mixed with ura­ Willrich estimate that a nuclear bomb of 1- tracting bomb-grade 2:iau would require iso­ nium oxide. LWR fuel would require the ton yield would emit penetrating gamma and topic separation techniques far beyond the chemical processing of some 300 kg of mixed neutron radiation lethal for 100 m. Fallout capabilities of any clandestine group-and oxide to obtain 10 kg of plutonium; OTA could contaminate much larger areas, de­ many nations, for that matter. (In the plu­ estimates this would take several months pending on the weather conditions. The af­ tonium cycle, plutonium could be extracted and would require someone with pratical fected areas would have to be evacuated a.nd from mixed oxide fuel by chemical tech­ chemical engineering exerience. LMFBR fuel then decontaminated at great expense. niques.) Plutonium is not entirely elimi­ would be much richer in plutonium; Taylor This last possiblity suggests another ter­ nated from the picture, however. Once the claims it can even be used Jn a bomb as is. rorist use of plutonium, one which would denatured fuel is placed in the reactor, its The pure oxide certainly can be used di­ avoid a.ll the hassles of actually making a 238U still will absorb neutrons and turn into rectly, if the group is willing to accept a bomb. The terrorists simply could disperse 2aopu, just as it does now. However, there bomb with a 30- to 70-kg nuclear trigger. the stuff, say by introducing it into the air wlll only be about one fifth as much. Since the oxide ls a powder, it would have system of a large office building. Plutonium Even this smaller amount could be kept to be compressed into shape and sintered. is so carcinogenic that a dust-sized speck away from potential proliferators. Taylor and August 2, 1977 EXTENSIONS OF REMARKS 26253 his colleagues suggest that all thorium operations. The records will clearly indi­ CONTINUED MEDICAL COVERAGE breeder reactors, reprocessing plants, and cate that the local CETA programs a.re FOR UNMARRIED FORMER fabrication plants-in short, all the prolifera­ far more costly than the same operation SPOUSES OF MILITARY PER­ tion-sensitive elements of the thorium fuel administered as part of the bureau's cycle-could be located in an international SONNEL center under the strict control of the Inter­ national program. national Atomic Energy Agency. Only the This program called for the placement conventional power reactors themselves of 70 people in each of the above cities, HON. JOHN L. BURTON would be controlled at the national level, with reimbursement for training costs to OF CALIFORNIA and only denatured fuel and hopelessly radio­ be provided for 35 slots. The additional IN THE HOUSE OF REPRESENTATIVES active spent fuel would ever exist outside 35 slots in each area were non-reimburs­ Tuesday, August 2, 1977 the center's well-guarded gates. able on-the-job training positions. Each Even critics of the plan agree that the area was serviced by one job developer, Mr. JOHN L. BURTON. Mr. Speaker, thorium cycle bears study, if only as a way I would like to share with my colleagues of conserving ura.nium. As for proliferation, whose annual salary was $9,816 or they point out that the idea of interna­ $188.76 per week, and a secretary with the remarks of Annette Klang Smail of tional centers would be nearly as effective an annual salary of $6,165 or $118.55 per Novato, Calif., regarding H.R. 8258, a bill for the plutonium cycle-and, in fa.ct, has week. These wages are far lower than the which I have introduced to provide con­ been advocated already by many proponents usual salaries of $15,000 for a job devel­ tinued medical coverage for unremarried of the LMFBR. oper and $8,500 for a secretary. In addi­ former spouses of military personnel Whatever the virtues of the international tion, there are the normal fringe benefits after 20 years of marriage: center concept, there is no fuel cycle elabo­ JULY 17, 1977. rate enough and no technical fix clever which usually amount to approximately 9 percent. From Annette Klang Smail of Novato, Calif. enough to stop proliferation totally; there Re: Remarks on H.R. 8258 to be inserted in are too many ways a determined nation can The cost of reimbursement averaged Congressional Record get its bombs independent of the fuel cycle. $600 per trainee. On a matching one to My remarks here refer to H.R. 8258, a bill It may well be that the best anyone can do one basis, this means that the reimburse­ that would provide continued medical cover­ is to slow down the course of proliferation, ment cost is only $300 per trainee. The age for former wives of servicemen after a to make it more expensive and difficult. total amount of reimbursement nation­ minimum 20-year marriage. Even so, it would be worth the effort. As The need for this bill is really based on Albert Wohlstetter puts it: "Even if (the ally, and under CETA, is well over $1,500. The national program was continued one primary principle-the ethical demand spread] were, as it is claimed, inevitable based on the intensity of need and equitable 'sooner or later,' later would be better than with Detroit, Cleveland, and St. Louis as treatment under the law. How Congress be­ sooner, and less better than more." bases. On July 14, 1977, they completed haves in approaching this problem will be the program with a 120 percent record. watched by a large number of supporters of The entrance rate ranged from the $3 this measure. An equitable remedy must be minimum requirement to $6 for reim­ found to redress the wrongs endured by a THE YOUNG ISRAEL EMPLOYMENT bursable trainees and from $2.90 to $4 very small group of older women who are BUREAU for non-reimbursable trainees. being illegally deprived of desperately-needed The trainees were placed in the type of medical care. To this end, I can provide testi­ mony from women, both divorced and those HON. FREDERICK W. RICHMOND program which would lead to the learn­ about-to-be divorced-women who need such ing of a particular skill and talent. The OF NEW YORK continuing care as dialysis treatment, dia­ following are examples of the type of po­ betic care and other problems that outcrop IN THE HOUSE OF REPRESENTATIVES sitions in which trainees are placed: of­ during middle-age.• At this time in their Tuesday, August 2, 1977 fice machines mechanics, secretaries, lives, to become suddenly stripped of health care resources is a.kin to having one's Mr. RICHMOND. Mr. Speaker, in bookkeepers, metal fabricators, butchers, machinists, medical assistants, geriatric crutches stolen. times when critics arise to find fault with nurses, jewelers, store managers, and se­ Under the present law, these women, upon government sponsored programs de­ divorce are suddenly left without any health curity officers. We note that in the fore­ signed to alleviate unemployment, it is care resources whatsoever. They are not old seeable future these areas will need incumbent upon us to state for the rec­ enough to qualify for Medicare and most workers. often too old to qualify for private health in­ ord those achievements that give credit This on-the-job-training program, in­ surance; or if they do qualify, the cost is to the U.S. Department of Labor. cluding the reimbursable funds, costs only prohibitive. All this results in cruel and un­ As an example of an outstanding pro­ $185,656. bearable financial and emotional hardship, gram, I submit the record of the Young One cannot judge statistics without which lays further increasing burdens on Israel Employment Bureau, a non-sec­ the health of these former spouses-99.9 % ot yardsticks. Therefore, let us consider the whom, it is estimated, are women. tarian undertaking sponsored by the Na­ following: the average retention rate is tional Council of Young Israel, with its Besides this ethical demand calling for approximately 60 percent, 70 percent is Congress to confront this issue with com­ national headquarters in New York considered good. The retention rate of passion and resolution because of the dev­ City and branch operations in 17 States. the Young Israel Employment Bureau astating physical and financial effects be­ It operates employment bureaus in six program is over 90 percent. cause of the way the law now stands, there is States: New York, Ohio, Michigan, Mis­ The mean cost for reimbursement for another issue involving substantive discrim­ souri, California, and Florida. training is $1,500. The cost for the em­ inatory practices by the Federal government. In 1929, the organization established Here I refer to the fact that these former ployment bureau is $300 for the same wives would have had medical coverage for its first employment bureau designed to training period. CETA program officials find jobs for all people regardless of life, Provided they had not been divorced. I are satisfied with an 80 percent perform­ want to dramatize this point in this way: if ethnic background. During, and imme­ ance rate, the employment bureau has a a husband should die just up to one minute diately after the war years, it added a performance rate of over 100 percent, before midnight the day the divorce becomes veterans division to the employment bu­ normally 120 percent. final, then the wife is covered medically for reau. The particular concern was with life! By the existence of this very practice, the unique problems of the returning On July 15, 1977, the U.S. Department the Department of Defense, which present­ veterans, in the areas of education, em­ of Labor once again recycled the Young ly administers this law, thereby acknowledges ployment, and social adjustment. Israel Employment Bureau national pro­ IN FACT that this life-long medical cover­ gram for the above mentioned three age acquired after a minimum of 20 years In 1966, the employment bureau ap­ cities. It is to the credit of the Depart­ of marriage be recognized as a vested in­ plied to the U.S. Department of Labor ment of Labor that it recognized the terest, a right earned-but, a right that is and received its first federally funded Young Israel's national program service perfunctorily ignored simply on the basis on-the-job training program-OJT. of a change in marital status! The husband as a yardstick in calculating the efficiency is not penalized by a change in his marital Since that time, it has successfully exe­ of the local CETA-sponsored programs. cuted 12 employment contracts under In particular, the astuteness of the Hon­ Ephraim H. Sturm, the founder and orable Ernest Green, the Assistant Secre­ • Medical needs of older persons amount director of the program. tary for Employment and Training, and to three times that of younger persons. These With the advent of CETA, the Young statistics are taken from "Aging: Prospects his staff deserve special attention. They and Issues," edited by Richard H. Davis. This Israel Employment Bureau spun off their have recognized the unique dedication book is used in a government-funded course national programs in Los Angeles and in and achievement of the Young Israel na­ for persons working in programs under the Dade County, Fla. as independent CETA tional OJT programs. Older Americans Act. 26254: EXTENSIONS OF REMARKS August 2, 1977 status; only the wife, who ls lllegally deprived (2) At the present time, when m111tary intelligence activities in areas far re­ of a vested interest by a penalty that has marriages of long-standing do break up, what moved from his personal experience 9 no ethical, moral or economic Justification. I happens more often than not ls that infor­ years ago in Latin America. attest here that it ls not the business of the mal or legal separations rather than divorces federal government to involve itself Judg­ occur. This happens so that the wife does Shortly before his mid-1976 visit to mentally in personal decisions by confront­ not lose her benefits and so that the husband Jamaica to denounce the political op­ ing certain persons (namely the ex-wife) ls not obligated, through the divorce settle­ ponents of Marxist Prime Minister with punitive responses. The only moral and ment, to provide financial coverage for the Michael Manley as agents of a CIA ethical grounds that this social problem ls ex-wife's medical expenses. It ls therefore "destabilization" effort, Agee was ob­ dealing with ls that of redressing wrongs, estimated that the additional number of served in Moscow. The liberal mass making amends to those women who con­ those ex-spouses to be given medical care media has picked up and publicized tinue to be deprived of their vested interests under an amended law would be minimal. Agee's charges without asking what his simply because their marital status ls (3) Should an ex-wife be driven to go on changed either by themselves or their hus­ welfare to get her medical needs satisfied, sources might be, apparently because bands. For the federal government to get this would certainly be more costly to the sensational headlines sell papers and punitive about personal marital affairs to­ government than the initial medical cover­ satisfy their editors' "craving for bogey­ ward one of the marriage partners ls highly age. men," as an article in the London news­ out-of-order 1n a democracy. Having led the drive to get H.R. 8258 in­ paper, the Daily Telegraph, phrased it. To further the point of the concept of troduced, I am very much in touch with the Having finally exhausted all his ap­ vested interest and how lt ls further acknowl­ grassroots on this matter and its visible peals, Agee was deported from Britain. edged by one Department of the Armed and vocal support has underlined the need Forces, namely the Air Force, I would like for this legislation. There ls now a growing He is in the Netherlands working with to present here a "Certificate of Apprecia­ nationwide organization known as MED the Institute for Polby Studies' Trans­ tion." This certificate ls traditionally given (Medical Equality for Dependents or Medical national Institute which has on its staff to wives at the time husbands retire from Ex-Dependents, take your choice) supporting Marxist revolutionaries and members of active duty. The typical certificate I am this legislation. In addition, many notable terrorist organizations from Latin referring to ls dated June 1, 1973, signed by organizations, many with national networks, America, Asia, Africa, and the Middle John D. Ryan, Chief of Staff and Colonel have endorsed the concept of this legislation. R. R. Melton, U.S.A.F. Commander. It reads East-a virtual tricontinental thinktank To name just a few of these organizations: of terrorist intellectuals with a heavy as follows: "This ls to certify that on the National Women's Political Caucus; the Dem­ occasion of the retirement of her husband ocratic Party of Marin County (it ls now admixture of Castroites and Trotskyites from active duty with the United States Air going before the Democratic Party of Cali­ from the Fourth Intemational's Interna­ Force has earned grateful appreciation for fornia for endorsement) and International tional Majority Tendency-IMT. her own unselfish, faithful and devoted serv­ Women's Year (IWY) California Meeting. I The article noted that Agee's "friends ice. Her unfalllng support and understand­ want to point out that resolutions endorsed in Britain" are carrying on his anti­ ing helped to make · possible her husband's by IWY are categorically to be brought to lasting contribution to the Nation." This is intelligence work through a left-wing the attention of the President as well as "publication called the Leveller, through all to say that to maintain the morale of a Congress, with the goal of, among other family on a global basts for at least 20 years things, "to promote equality between men a new organization called the Movement ls certainly quite an accomplishment and and women." This H.R. 8258 is designed to do Against State Abuses , and should not go without compensation. just that for one small sub-group of women through more shadowy groups like 'Spies This matter of due compensation brings up another relevant point. The present form being dented equality of treatment. for Peace.'" of the public law that this blll seeks to amend With all the support this blll is getting, The article, slightly excerpted for ts in contllct with national policies on aging with the demonstrated intensity of need that space, continues: as enunciated ln the Social Security and Med­ exists, there is no way Congress could ever (From the (London) Dally Telegraph, icare Acts, both of which include the 20-year­ justify a stand about doing nothing about July 28, 1977) marrlage clause for the entitlement of con­ this social problem. I have hopes that Con­ gress wm be sensitive and act upon a Citi­ How THE KGB's 'USEFUL IDIOTS' HELP TO tinuing benefits. Therefore, these two Acts UNDERMINE THE WEfn on Aging provide the parallel and precedent zen's warranted initiative that is a repre­ to offer continuing care under CHAMPUS sentative concern. I would like to feel that (By Robert Moss) (Ctvman Health and Medical Program of Congress monitors itself and does not wait The Leveller ls modelled on the Washing­ the Uniformed Services). (See Section 1077 for the emergence of pressure groups to rise ton-based publication, Counter-Spy, which of Public Law 89-614 which describes how to the point where something must be done specialises in naming CIA agents and has these two Acts interweave with CHAMPUS.) just to avoid great dissensions in our coun­ Agee as one of its trustees. The former CIA I have had lengthy correspondence with try. Besides all that, I would not like to see Director, Willlam Colby, attributed. the mur­ some members of Congress as well as some all this reasoning spent in vain, fighting for der of the CIA's station chief in Athens in members of the Administration on this a desperate human need that continues to December, 1975, to Counter-Spy. The Leveller urgent social problem-a problem that must go unmet, fraying so many lives into ragged set out in its first issues to name British be solved honestly and with forthrightness, prayers, causing more tragedies, more an­ intelligence omcers and agents. Its founder­ and not dodged by the use of fancy rhetoric guishes, more Viet Nams of the soul. I have subscribers include Agee's friend, Mark or by muddying the waters with faulty another last hope about the U.S. Congress: Hosenball, as well as journalists from the rationale. For example, one or the solutions that the issues it chooses as priorities to act Guardian, Private Eye, Time Out and the offered to me tn my predicament went some­ quickly upon have to do with needs-not BBC. thing like this: "You would best be advised greeds, but needs, and that the intensity of The witch-finders are not embarrassed to to seek recognition of your situation through these needs be given top priority. This was confess that they have no interest in expos­ a divorce settlement." I submit that the local done for quick federal disaster relief for those ing the crimes of the Soviet KGB. One of divorce courts are not equipped to handle sufferers of California's drought. We ex-wives Agee•s more garrulous supporters, a journal­ this problem; and I can offer the testimony of the m111tary need similar disaster relief ist from the Interpress agency called Ph111p of many other ex-wives on this point. It was even more quickly. May the conscience of Kelly, has said this ls because "there ts further suggested to me that I could attach America be your guide. nothing wrong with Russian foreign policy. my husband's retirement pay for overwhelm­ And anyway, the KGB only operates inter­ ing medical expenses, should they occur. To nally to repress subversive elements." Agee place the burden of the solution of this himself has explained that the KGB 1s not a. social problem back onto the individual target because the Soviet Union had "had its retired G.I. ls really no solution at all. How PHILIP AGEE: WITCHHUNTER FOR can Congress expect the retired serviceman THE KGB socialist revolution." to cope financially with their ex-spouses Yet since he defected from the CIA tn medical bllls? Imagine also how it is when Mexico City in 1969, Agee's campaign against ex-wives are driven to such lengths of hav­ HON. LARRY McDONALD his former employer's has been rewarded ing to go to court at the time of an mness OF GEORGIA with acres of column inches in the Press and or convalescence I IN THE HOUSE OF REPRESENTATIVES many hours of prime-time television cover­ The financial facts are that there would age. Few people have questioned his sources be minimal cost to the Federal government Tuesday, August 2, 1977 of information, even though most of his al­ to continue this medical coverage for ex­ Mr. McDONALD. Mr. Speaker, Philip legations, about CIA operations in Greece, wlves with a minimum 20-year-marriage for Portugal, Italy, Britain, Southern Africa, three reasons: Agee, a former junior CIA officer in Jamaica and Australia are obviously not ( 1) Statistically, most divorces occur be­ Latin America who quit in 1968 to be­ based on his experience as a junior intelli­ fore the 20-year period; and the number of come a self-styled "revolutionary social­ gence omcer in Latin America. in the 1960'~· breakups of fammes after 20 years ls con­ ist," is continuing to serve as a mouth­ In recent weeks, Agee's claims about CIA siderably smaller. piece for exposes of current Free World activities in Australia have been given full August 2, 1977 EXTENSIONS OF REMARKS 26255 blast in the Australian media, including a "whether they were Cuban intelligence offl­ SOCIAL SECURITY EARNINGS 45-minute interview on the ABC. State­ cers or not, I don't really care." LIMITATION ments from a man who was in the process Agee has been accused of betraying up of being deported from Britain as a secu­ to 100 CIA and British intelligence contacts rity risk were treated as if they came from a in Poland on the basis of Information he HON. RAYMOND F. LEDERER reputable authority and blown up into a collected while working for the CIA on the major political crisis in which prominent Olympic Organising Committee in Mexico OF PENNSn·VANIA anti-COmmunists---including trade union City. IN THE HOUSE OF REPRESENTATIVES leaders-were treated to a typical Mc­ From his training In the CIA, if from noth­ Tuesday, August 2, 1977 Carthylte campaign of smear and innuendo. ing else, Agee must be fully conversant With Mr. Bob Santamaria, the chairman of the Soviet techniques of black propaganda. Mr. LEDERER. Mr. Speaker, I am in­ National Civic Council, is suing the ABC The Russians have been expert in this field serting into the RECORD a copy of a over claims made by Agee. since the early 1920s, when they set up a resolution I received from the State sen­ Gen. Andropov, the head of the KGB, with department for the spreading of false infor­ ate in Pennsylvania concerning the a million employees at his disposal to gag mation through the media, and other sub­ the Russian people and to subvert the versive activities. In 1966, this department elimination of the earnings limitation Western democracies, must be laughing his was raised to the status of a separate direc­ for social security recipients. head off. torate (Directorate A) of the KGB's First Since this House will soon be consider­ It is of course true that no Western intel­ Chief Directorate. ing the President's social security pro­ ligence service is simon-pure. The secret Today, this directorate is engaged in an posals, Ifeel this resolution is both timely war with the KGB is not played by Queens­ all-out campaign to blacken the image of and informative. berry rules. Western intelligence services and anti-Com­ But I have no time for people who make munist polltlclans and trade unionists. Satel­ Mr. Speaker, I hope my colleagues in out that you cannot draw a basic moral dis­ lite intelligence services like the Cuban DOI the House will give this proposal in­ tinction between men who are employed to play a key role in this campaign. Under the cluded in this resolution serious con­ defend our liberties and those who are em­ Soviet-Cuban agreement of 1968, the DOI sideration when this matter reaches the ployed by the Soviet bloc to destroy them, took over increased responstblllty for dealing :floor: just because sometimes they are fighting with radicals and the New Left in Western RESOLUTION each other down in the muck. And I tremble countries, on the (correct) understanding Whereas, many retired people receive only for the survival of our freedoms if Western that Fidel Castro has a more romantic image Social Security benefits: and societies disarm themselves against the in these circles than the stolid heirs of Whereas, some people also have substantial growing threat from Soviet-sponsored sub­ Stalin. Investment income, in addition to Social Se­ version, and if irresponsible editors and tele­ So it ls not surprising that Trotskylte and curity; and vision broadcasters go on putting the lives other New Left publications In Britain have of Western intelUgence offlcers at risk by become a constant outlet for Agee's effu­ Whereas, people under the age of 72 with­ printing their names on the say-so of sions and for black propaganda that serves out other income desiring to increase their ideological defectors like Ph111p Agee. What is the Soviet interest. standard of living are penalized when the even worse is that people are named as We do not need to prove that the people individual earns over $3,000 a year because agents who have no connection with intel­ who are orchestrating the attack on West­ Social Security benefits are reduced; and ligence services. ern security services are conscious agents of Whereas, in contrast, people over the age DEFORMED BY WATERGATE the KGB. Lenin wrote, with Slavic bluntness, of 72 and those With substantial income from about the Communist Party's "useful sources other than wages are not penalized; So it is high time that we asked what is and really at the root of this latter-day Mc­ idiots"-people whose activities serve pur­ Whereas, something more should be done Carthyism. I believe that there are two poses that they do not comprehend. overlapping problems. There ls a conspiracy The conclusion to be drawn is simple. The for these citizens who have already paid their people who express rage and emotion over dues to the Nation's economic well-being; to discredit the individuals and institutions therefore be it that contribute most to our defences against the crimes, real or imagined, of Western se­ Communism. There is also a consensus curity services without attacking the infi­ Resolved, (House of Representatives con­ among many media people, especially in nitely greater crimes of our strategic enemy, curring), That the General Assembly of the East-Coast America, that the only conspi­ the Soviet Union, are "useful idiots." They Commonwealth of Pennsylvania memorlallze racies that are newsworthy involve Govern­ help to divert attention from the forces that the Congress of the United States to change ments, lntelllgence services, corporations are striving to subvert our freedom. They the Federal law to liberalize the excess earn­ and private groups that might all be broadly deserve no hearing. ings provision of the Social Security Law; described as non-Left. and be it further The consensus ts well served by a gener­ Resolved, That copies of this resolution be ation of young reporters formed (or de­ IMPLEMENTING SECTION 504 transmitted to the presiding offlcers of each formed) by the post-Watergate mood of House of the congress of the United States America. The spectacle on the cinema HON. TOM HARKIN and to each Senator and Representative from screen of Robert Redford and Dustin Hoff­ Pennsylvania in the Congress of the United man toppling Nixon through the columns OF IOWA States and the President of the United States of the Washington Post held out before IN THE HOUSE OF REPRESENTATIVF.s and to the Federal COuncU on Aging. every would-be Investigative reporter the Tuesday, August 2, 1977 I certify that the foregoing is a true and glittering prospect that he, too, could be­ correct copy of Senate Concurrent Resolu­ come a film star-if he picked the right Mr. HARKIN. Mr. Speaker, in May of tion, Serial No. 208, introduced by Senators targets. this year, Joseph Califano, Secretary of Freeman Hankins, Quentin R. Orlando, Agee, while loud in abuse of his former the Department of Health, Education, Joseph F. Smith, Clarence D. Bell, Michael P. colleagues in the CIA has been remarkably and Welfare, signed into law, section 504, Schaefer, Henry c. Messinger, Stanley M. discreet about his contacts with the Russians Naszka, Eugene F. 8canlon, James R. Kelley, implementing regulations which would Louis G. Hlll, James A. Romanelli, Michael and the Cubans. According to former top bar federally funded institutions from CIA offlcials, Agee's first significant contact A. O'Pake, William E. Duffleld, Jeanette F. with the KGB took place as long ago as Oc­ discriminating against mentally or phys­ Reibman, Paul McKinney, Edward M. Early, tober 1964, when he was serving in the CIA ically handicapped individuals. These Joseph E. Gurzenda, John James Sweeney, station in Montevideo. It was then that he regulations require that all institutions Francis J. Lynch, Franklin L. Kury, Thomas met Vitally Petrovich Semenov, a KGB man provide, among other things, equal access M. Nolan, James E. Ross, H. Craig Lewis, Mar­ then serving under cover as a military to facilities and equal availability of tin L. Murray, Henry J. Cianfrani, Patrick J. attache. Stapleton, Herbert Arlene, Robert J. Mellow, programs to all individuals. Charles F. Dougherty, R. Budd Dwyer, John Since then, Semenov has risen to dazzling According to a recent Associated Press Stauffer, Wilmot E. Fleming, Henry G. Hager, heights. Under the secret intelligence treaty article, a Federal judge has ordered Con­ George W. Gekas, Edwin O. Holl, Wllliam J. signed between Russia and Cuba in 1968 verse College in Spartanburg, s.c., to em­ Moore, Clarence F. Manbeck, Edward L. How­ Semenov was posted to Havana as the KGB ploy a sign language interpreter for a ard, Robert C. Jubelirer, John D. Hopper, W. general in charge of the Cuban intelligence Thomas Andrews, Richard A. Tilghman, service. He was in Havana when Agee turned deaf student at the college's summer school. Ralph W. Hess, Richard A. Snyder and up there, having left the CIA, to take ad­ adopted by the Senate of Pennsylvania the vantage of Cuban "research" facilities to I commend this action on its merits second day of May, one thousand nine hun­ put together his book "CIA Diary." alone, but also as an example that these dred and seventy-seven and concurred in by Agee has maintained regular contact with regulations can and will work toward the House of Representatives the ninteenth Russian and Cuban offlcials. In the case of providing equal treatment and oppor­ day of July, one thousand nine hundred and the Cubans, he has said in an interview, tunities to handicapped individuals. seventy-seven. 26256 EXTENSIONS OF REMARKS August 2, 1977 BALANCE($) OF POWER: PART VI State had begun to negotiate the all1ances However, during the last five years or so,

mentary School and Admin. omces, Marion, NEW JERSEY VIRGINIA I.&; H; Retrofit; $224,183. Cherry Hill Inn, Haddonfield Road, Cherry Arlington House Hospital, Inc., 2101 Ar­ KANSAS Hill, NJ 08034; Hotel, Cherry Hill, NJ; H, lington Blvd., Charlottesville, VA 22901; Hos­ Board of Education, Unified School District HW; Retrofit; $323,948. pital, Charlottesville, VA.; H, HW; New; No. 306, Gypsum, KS 67401; School Building, Stephen Giddio Construction Co., 225 $47,950. Gypsum, KS; H, HW; New; $178,655. Lennox Avenue, West End, NJ 07740; Restau­ WEST VIRGINIA Chas E. Henning, MD, Solar Services, Inc., rant, Long Beach, NJ; H, C, HW; New; Trustees of Bethany College, Bethany, WV 239 Pattie, Wichita, KS 67211; Medical Offices, $172,944. 26032; Educational/Conference Center; H, Wichita, KS; H; New; $23,952. NEW MEXICO HW; Retrofit; $154,758. Ducat Investments, Inc., 28-20 K Roe Lane, City of Albuquerque, Animal Control Cen­ WISCONSIN Kansas City, KS; Office/ Warehouse Bldg., ter, 8920 Lomas, N.E., Albuquerque, NM Kansas City, KS; H; New; $265,630. 87112; Kennels, Offlces and Storage Area, Zien Plumbing and Heating Company, 4450 Kaw Valley State Bank and Trust Com­ Albuquerque, NM; H, HW; New; $39,250. N. Oakland Avenue, Milwaukee, WI 53211; pany, 1110 North Kansas Avenue, Topeka, KS Property Control Div. Dept. of Finance & Dental Clinic, West Bend, WI; H; New; 66608; Detached Bank Facility, Topeka, KS; Administration, Bataan Memorial Building,, $35,026. H, C, HW; New; $75,166. State of New Mexico, Santa Fe, NM 87501; School District of Howards Grove, 437 N. Wisconsin Drive, Howards Grove, WI 53081; MARYLAND Omce Facility, Santa Fe, NM; H; New; $45,000. Mr. G. 0 . Drennan, Drennan Air Condi­ Elementary School, Howards Grove, WI; H; Montgomery Community Center, 51 Man­ New; $35,301. tioning and Heating, Box 1936, Hobbs, NM; akee Street, Rockville, MD 20850; Campus WYOMING Buildings, Germantown, MD; H, HW; Retro­ Retail Sales Building; H; Retrofit; $12,081. Craig Thomas, Manager, Wyoming Rural NEW YORK fit; $22,379. Electric Assoc., Pacific Western Bldg., Casper, Anne Arundel County, Arundel Building, City of New Rochelle, 515 North Avenue, Attn: Robert Pascal, Annapolis, MD; Senior WY 82601; Omce Building, Casper, WY; H; New Rochelle, NY 10801, Public Library, New; $31,447. Citizen Recreation Center; H, C, HW; New; New Rochelle, NY; H, C, HW; New; $274,855. $183,81'). New York Botanical Garden, Cary Arbore­ The Mayor and City Council of Baltimore, tum, Box AB, Millbrook,, NY 12545; Offlces Attn: Bernard L. Berkowitz, 250 City Hall, and Lab Building, Millbrook, NY; H, HW; Baltimore, MD 21202; Fire House, Baltimore, New; $122,229. RABBI WALTER JACOB MD; H, c, HW; New; $203,667. Ballston Spa Central School District, 70 MASSACHUSETTS Malta Avenue, Ballston Spa, NY 12020; Edu­ HON. WILLIAM S. MOORHEAD Children's Hospital Medical Center, 300 cational Building, Ballston Spa, NY; H, HW; Longwood Avenue, Boston, MA 02115; Pedi­ Retrofit; $470,000. OF PENNSYLVANIA atric Research, Boston, MA; H, HW; Retrofit; Dayton T. Brown, Inc., Engineering & Test IN THE HOUSE OF REPRESENTATIVES Div., 555 Church Street, Bohemia, NY 11716; $148,150. Tuesday, August 2, 1977 Christian A. Herter Center, 1175 Soldiers omce Building, Bohemia, NY; H ; Retrofit; Field Road, Boston, MA 02134; Community $129,725. Mr. MOORHEAD of Pennsylvania. Mr. Center, Boston, MA; H, HW; Retrofit; $91,489. Mr. Carl Grimm, The Crossway, East Acres, Speaker, I ask the Chamber to join me Technology Properties Trust, c/ o Aero­ 't'roy, NY; H; New; $141,632. in paying tribute to one of the leading space Systems, Inc., One Vine Brook Park, Troy, NY 12180; Bank/Retail Sales Building, citizens of my community, a man who has Burlington, MA 01803; Omce Building, Bur­ NORTH CAROLINA lington, MA; H , HW; New; $171,411. labored all of his life on behalf of his Mr. Walter Baum & Ms. Carollsta Baum, Hampshire College, Amherst, MA 01002; fell ow man, Rabbi Walter Jacob of Pitts­ 515 E. Rosemary Street, Chapel Hill, NC burgh's Rodef Shalom Congregation. Educational Facility, Amherst, MA; H, C, 27514; Office and Retail Building, Chapel HW; New; $329,827. Hill, NC; H, c. HW; New; $50,654. Earlier this year, Rabbi Jacob's con­ MICHIGAN gregation celebrated his 20-year anni­ OHIO John O. Esslinger, M.D., 1100 6th Street, versary of service to them and to the Columbia Gas System Ser.vice Corporation, community. Trave:rse City, MI 49684; Medical Offices, 1600 Dublin Road, Columbus, OH 43215; Traverse City, MI; H, HW; New; $22,280. Office Building, Columbus, OH; H. C, HW; Rabbi Jacob, who is the 17th genera­ Jordan College, Box Y, Cedar Springs, MI Retrofit; $254,300. tion of his family to serve God and man 49319; College/ Residence Hall, Cedar Springs, Columbus Technical Institute, 550 E . as a rabbi, is a nationally recognized MI; H, HW; Retrofit; $98,660. Spring Street, P.O. Box 1609, Columbus, OH scholar whose work on behalf of and Troy School District, 440 Livernois, Troy, 43216; Educational/ Administrative Building, service to the community are prodigious. MI 48098; Elementary School, Troy, MI; H, Columbus, OH; H, C; New; $389,320. In addition his work with Rodef HW; New; $206,770. to SOUTH DAKOTA Shalom, Pittsburgh's oldest Jewish con­ MINNESOTA First Baptist Church, Aberdeen, SD 57401; gregation, Rabbi Jacob has been most Minnesota Zoological Board, 12101 Johnny Church, Aberdeen, SD; H, HW; New; $69,942. active in the cause of human rights for Cake Ridge Road, Apple Valley, MN 55124; all people, Jew and Christian alike. Zoo, Apple Valley, MN; H, HW; New $313,458. Spearfish School District No. 40-2, Spear­ fish, SD 57783; High School; H, HW; New; In recent years he has been an active Dr. J. Bapst, Hibbing Community Col., $199,502. member or served on the boards of direc­ Hibbing, MN 55746; Public Planetarium/ TENNESSEE Museum, Hibbing, MN; H; New; $145,500. tors of a number of local civic groups in­ Tennessee Building Material Assoc., P.O. cluding the Epilepsy Foundation, Ameri­ MISSOURI Box 40328, Nashville, TN 37204; Office Build­ can Red Cross, Pennsylvania Equal Stephens College, Columbia, MO 65201; ing; H, HW; New; $66,652. Rights Council, the Pittsburgh Area Reli­ Visitor Center, Columbia, MO; H; New; Coca-Cola Bottling Works of Jackson, Inc., $93,457. gion and Race Council, the Anti-Defama­ P .O. Box 1804, Jackson, TN 38301; Soft Drink tion League, the Religious Education As­ William Tao and Assoc., Inc., 2357 59th Bottling Plant, Jackson, TN; H; Retrofit; Street, St. Louis, MO 63110; omce Building, $496,094. sociation of America, the Pennsylvania St. . Louis, MO; H, HW; New; $7,912. TEXAS Guild for Infant Survival, Inc., the Penn­ sylvania Association for Retarded Chil­ MONTANA Messrs. Lon W. Travis & E. E. Braun, 4140 dren, and many more. Billings Shipping Corp., 425 North 27th, Office Parkway, Dallas, TX 75204; Office Billings, MT 59101; Omce Building, Billings, Building, Dallas, TX; H , HW; New; $55,625. The rabbi also has served as a chap­ MT; H ; New; $59,900. . L. A. Bell, Owner, American Ornamental lain for the U.S. Air Force for 2 years. Metal Company, 5013 Kelly Street, Houston, Exemplifying his role as "teacher," the NEBRASKA literal definition of rabbi, Rabbi Jacob Housing Authority of the City of Lincoln, TX 77026; omce/ Manufacturing Building, 225 N. Cotner Blvd., Lincoln, NB 68505; Cen­ Austin, TX; H , C; New; $51,782. has written 5 books, is the author of more tral Admin., omce Facility, Lincoln, NB; H, UTAH than 40 articles, and serves as visiting HW; New; $13,787. Permaloy Corporation, P.O. Box 1559, professor at the Pittsburgh Theological NEW HAMPSHIRE Ogden, UT 84402; Manufacturing Facility; Seminary. H; Retrofit; $92,560. Contemporary Systems, Incorporated, 68 As you can see from this varied and Charlonne Street, Jaffrey, NH 03452, Manu­ La Quinta Motor Inns, Incorporated, P.O. fruitful list, Rabbi Walter Jacob is a man facturing/Omce Building, Jaffrey, NH; H, Box 32064, San Antonio, TX; Motor Inn, Salt who has dedicated his life to helping HW; New; $75,938. Lake City, UT; H , HW; New; $99,350. others, as a spiritual and religious leader University of New Hampshire, Grant & VERMONT and as an active contributing citizen. Contract Omce, Durham, NH 03824; Chemis­ The Rutland Group, Inc., 162 S. Main I ask the House of Representatives to try Lab, Durham, NH; H, HW; Retrofit; Street, Rutland, VT 05701; Construction Co. join me in wishing Rabbi Walter Jacob $192,156. omces, Rutland, VT; H, C; New; $13,287. continued success and good health and August 2, 1977 EXTENSIONS OF REMARKS 26261 extending our hope that his future is this admission greatly understates the true that government is claiming more than one­ studded with as many good works as his cost of government. The GNP calculation half of the fruits of your labor? We do every­ past. blithely adds government spending to na­ thing in our power to adjust our financial af­ tional production and assumes that all its fairs to tax reality, and hold on to as much revenue comes from current production. Ac­ of our earnings as we legally can. HOW TO SAVE ON YOUR INCOME tually, government may finance its expendi­ But how can you reduce your tax llabiUties tures, especially its deficits, out of previous through personal readjustment? The answer TAXES savings and capital accumulated in the past, is stated simply in what we like to call the which again reduces the current income base tax law of survival: when confiscatory tax­ and raises the percentage share consumed ation claims the lion's share of your income, HON. LARRY McDONALD by government. We, therefore, estimate that you can reduce this share by increasing your OF GEORGIA the cost of government approaches 45 per­ tax-deductible expenditures. That is to say, IN THE HOUSE OF REPRESENTATIVES cent of our incomes. But even this is not you must spend your income on tax-deduct­ the whole story. Taxpayers are spending ible items. Tuesday, August 2, 1977 many billions of dollars on tax advice, as­ The Federal income tax in its present form Mr. McDONALD. Mr. Speaker, total sistance, and accounting, which must prop­ is levied on personal incomes and expendi­ government spending has grown during erly be added to the total burden of govern­ tures. The more you earn and consume, the the past three decades from 18 percent of ment. If we should add the indirect costs in higher is your tax bracket. It is true that the the form of production hampered and pre­ Federal government allows you a few deduc­ gross national product to 34 percent. But vented, investments not made, savings con­ tions, such as $750 per member of the fam­ as the noted economist Hans Sennholz sumed, waste and inetnciency imposed by ily, interest you pay on your indebtedness, points out, this figure is very misleading. regulations and controls, we begin to get a the taxes levied by other authorities, and a When other factors such as deprecia~ion, clearer picture of the tax scene. few ether items. But by far the larger share capital consumption, and direct costs are Professional people with higher than aver­ is taxable at progressive rates. This is why a considered, the total burden of govern­ age incomes obviously carry more than the taxpayer who is concerned about the confis­ ment averages more than 50 percent of average share of government burden. If the catory claims of tax collectors spends as an individual's income. average taxpayer with an annual income of much as he possibly can on tax-deductible barely more than $10,000 pays 45 percent to items, which reduce his taxable income ac­ Such an enormous burden not only government, the average physician with cordingly. In fact, with the help of a friend­ makes it difficult for a taxpayer to pro­ higher labor productivity and income must ly banker, he may increase his tax-deductible vide for himself and his family, but vir­ be expected to pay out 60 percent to 70 per­ expenditures to equal or exceed his taxable tually forces him to order his spending in cent. After all, there is tax progression that income, which would eliminate all income such a way as to keep his taxes within puts higher income earners in progressively tax llab111ties. livable bounds. higher tax brackets. What are such fabulous tax-deductible ex­ Professor Sennholz gives an excellent A married couple with a taxable income penditures? Any and all outlays for business of $44,000 per year now pays $14,060 in Fed­ that aim to generate more income in the account of just how great the tax burden eral income taxes, or some 32 percent, plus future. The physician who invests in the has become in "How To Save On Your 50 percent of every additional income dollar. tools of his profession, his practice, of!lce, Income Taxes," an article appearing in Then there are state and local income taxas, clinic, or hospital, creates tax deductions. the July 1977 issue of Private Practice. capita and occupation taxes, real estate taxes, Every penny spent becomes a tax deduction. Although directed to physicians, the sales taxes, social security taxes, excise taxes, If he prefers to leave his field of professional problems apply to any hard-working and many others. occupation, he may invest in any other bus­ taxpayer: The tax burden that is frequently over­ iness. Or, he may just buy his neighbor's How To SAVE ON YOUR INCOME TAXES looked is hidden in the costs of goods and house for rental purposes. Except for the services we consume. All goods bear taxes costs of the land, its purchase price is tax­ (By Hrans Sennholz, Ph.D.) that account for varying shares of the pur­ deductible over a number of years. When he If you want to succeed in economic life, chase price. The $5,000 automobile we buy finally owns the neighborhood, with the help you must make your own opportunities. You from a dealer probably would ~ost less than of his friendly banker, he may have many cannot sit by the roadside. $1,000 if its manufacture were not taxed new problems of property management, but In the American economy of today the road every step of the way, from the mining cf the the income tax is not one of them. The an­ is rough and dangerous, and there are three ore to the manufacture of tools, the produc­ nual depreciation deductions together with formidable obstacles ahead: tion of its parts, the final assembly, and its other maintenance deductions may equal or 1. There is the fast-growing jungle of gov­ transportation to the dealer. One small exceed his taxable income. ernment regulation and control that ham­ manufacturer we know is paying 44 different A simple example may illustrate the point. pers individual service and productivity. Pri­ taxes on his business. A young doctor who is both physician and en­ vate Practice deserves our gratitude for We pay taxes every time we reach for our trepreneur is building his personal clinic. He wading through this jungle and alerting its wallets and offer cash for goods or service. is earning $100,000 in net fees of which the readers in essays and editorials to the loom­ This is how every citizen, even the poorest Federal government is claiming $42,060 in ing dangers. members of society, must bear the growing income taxes. He now purchases radiological 2. There is inflation, the insidious policy burden of his government. Taxes are the equipment in the amount of $100,000, which of currency depreciation, which waylays largest single item in our costs of living: creates a tax deduction of $20,000 per year ma~y highly productive individuals. It robs nothing else can compare with the cost of if he distributes the write-off over five years. them of their savings and thus deprives them government. Americans spend more than If he chooses to purchase used equipment, he of the fruits of many years' productive ef­ twice as much on government as they spend may deduct it even faster. And if he chooses forts. This is why the knowledge of inflation on their daily food, or clothing, housing, edu­ to accelerate the depreciation by applying the may be as important as the professional cation, transportation, etc. declining balance method (200 percent rate), knowledge itself that enables us to render The importance of taxes in our lives makes he obtains a depreciation of $40,000, which services and earn a livelihood. tax knowledge one of the most important reduces his taxable income to $60,000, and 3. And finally, there is confiscatory taxa­ stores of information in economic life. Its his income tax to $22,060. Under the present tion that claims at least one-half of most usefulness outweighs by far that of the stock tax law, he may then at:Uuct an investment physicians' income and labor. market or any other investment plan we may tax credit of $6,667 ( % of 10 percent of the devise. The investor is happy to earn 6 per­ purchase price of business equipment), In his Budget Message the U.S. president which reduces his income tax 11ab111ty to $15,- readily admitted that "over the last three cent after taxes and infiation; in matters of taxes we are dealing with more than 50 per­ 393. In only one year our young radiologist decades, Federal, state, and local government saved $26,667 in Federal income taxes. spending has grown from 18 percent of GNP cent of our daily efforts. This is why every preparation of a fruitful career, or any seri­ He likes the results and, therefore, buys to 34 percent of GNP." As government can more equipment in the following year. And spend only that which it takes from its citi­ ous attempt at economic success, must begin with tax knowledge. a.gain, the new purchases lower his tax Ua­ zens, the president is admitting government b1l1 t1es by $26,667 while the equipment revenues of 34 percent of GNP. Actually, this Your CPA is the expert in taxation. But he bought previously stlll gives him $24,000 in figure is misleading us badly: the real bur­ works only with the financial data you pro­ depreciation, which now reduce his taxable den of government is much higher. GNP, or vide: he cannot bend the facts nor change income to $36,000, his income tax to $10,340, the gross national product, is the money the law. You, the tax payer, must learn to ad­ and after deduction of the investment tax value of the total output of goods and serv­ just your financial affairs to tax reality. You credit, to $3,673. ices in a year, before allowance for deprecia­ must be ever mindful of the tax implications In the third year of radiological purchases, tion and capital consumption. Obviously, of your economic decisions, and let tax con­ his total depreciation amounts to some $79,- the wear and tear of equipment and the con­ siderations guide you on the road to success. 000, his taxable income $21,000, his income sumption of capital goods are no income and To most professional people who are dedi­ tax $4,700, and after deduction of the $6,607 therefore must be deducted from any income cated to their particular profession, this may investment credit, he arrives at the zero calculation. With smaller income base the be distasteful advice. To them, taxation is bracket. Of course, he must make such in­ burden of government then rises to more a painful evil which they seek to avoid by vestments every year in order to safeguard than 39 percent of national output. But even ignoring it. But how can you ignore the fact his depreciation deductions. 26262 EXTENSIONS OF REMARKS August 2, 1977 Surely, his equipment permits him to of accomplishment. Theirs is a well de­ It is my sincere pleasure to bring the raise his income, which creates new tax Ua­ served honor. many accomplishments of this gentle­ b111ties. But he may also step up his profes­ man to the attention of my colleagues in sional investments and thus create ever the Congress. He has done a great deal larger deductions. And we must not forget MR. TSUNEYOSHI KOBAYASHI-AN that his debt to the friendly banker is rising, for my congressional district and I think OUTSTANDING COMMUNITY it only fitting to recognize his many which creates further tax deductions of the SERVANT interest he must pay. achievements and outstanding contribu­ Our physician-entrepreneur ls not reck­ tions. lessly building a pyramid of debt. The taxes HON. CHARLES H. WILSON he saves are used to amortize the debt. In fact, he may even reduce his consumption OF CALIFORNIA THE ELDERLY AS VICTIMS spending in order to bolster his equity cap­ IN THE HOUSE OF REPRESENTATIVES OF CRIME ital in the clinic. His personal savings, plus Tuesday, August 2, 1977 his tax savings, together with the inflation that depreciates his debt while it appreciates Mr. CHARLES H. WILSON of Cali­ HON. MORGAN F. MURPHY his equity, are creating conspicuous facilities fornia. Mr. Speaker, it is my pleasure OF ILLINOIS that benefit his patients. He need not today to honor an outstanding resident apologize for that. of Gardena, Calif.-Mr. Tsuneyoshi IN THE HOUSE OF REPRESENTATIVES It may also be objected that the favorable Tuesday, August 2, 1977 tax treatment of business investments, such Kobayashi. As the congressional Repre­ as those outlined above, may only be tem­ sentative for Gardena, I am well ac­ Mr. MURPHY of Illinois. Mr. Speaker, porary and that these "loopholes" may soon quainted with the service Mr. Kobayashi crime against .the elderly is a problem of be closed by an administration seeking new has rendered to his community and to growing concern to senior citizens, police revenues. We doubt it, A government tax­ the entire southern California area. officials, and legislators. The reason is ing business expenditures as income would Born in Kukuoka Ken, Japan, he not that older persons are victimized bring economic activity to a grinding halt, came to this country in 1917 and moved and create a hair-curling business depression more than other age groups, or that from which no political administration to California where he operated several crime against the elderly is dramatically would soon recover. We feel therefore per­ grocery stores in southern California. increasing. Rather, as a recent House fectly safe in making such business invest­ Due to the unfortunate situation in the study noted, it is the recognition that ments. And we object to the term "loop­ United States during World War II, he older Americans are financially, physi­ hole," which implies a prior government was interned at the Amachi, Colo., camp, cally, and emotionally the least able to claim to personal income and an objection­ but after the war, returned to our area cope with the effects of crime. able means of escape from a duty or liability. to open up a nursery in Redondo Beach. Actually, a tax looph6le ·is a small hole in a Perhaps the most devastating impact wall of a cell that permits the inmate to Tsuneyoshi, however, was not content of crime against the elderly is the fear breathe and live. To close it is to assassinate to just operate a business, but rather got that it creates. A number of senior citi­ him. To close all business "loopholes" is to involved in a variety of community or­ zens are prisoners of their homes and abolish economic life. ganizations including serving as presi­ apartments, afraid to venture out even dent of the Southern California Garden­ for bare necessities. er's Friendship Society, as president of Fortunately, some steps are being CITIZEN OF THE YEAR: A WELL­ the Gardena Valley Gardener's Associ­ taken to protect the elderly. Police escort DESERVED HONOR ation, and as a cabinet member of the services are being provided in some high Southern California Gardener's Associ­ crime areas to protect senior citizens. HON. LESTER L. WOLFF ation. He also served, in 1968, on the City Legislation has been introduced to com­ OF NEW YORK of Gardena Beautification Committee. pensate victims 62 years or older for IN THE HOUSE OF REPRESENTATIVES The evidence of his concern for the personal injuries and property loss. A bill beautification, and consequently the im­ pending in Congress would make juve­ Tuesday, August 2, 1977 provement of his city can be seen nile criminals more accountable for their Mr. WOLFF. Mr. Speaker, I would like throughout Gardena. offenses. to commend to my colleagues a com­ He has certainly demonstrated himself Mr. Speaker, I would like to draw my munity voluntary organization that to be a man of many interests and tal­ colleagues' attention to an article I have truly exemplifies America's pride in her ents. He has served in the Gardena City written on the subject of crime against grassroots endeavors. government, the Los Angeles county gov­ the elderly. The article appeared in the Each year since 1970, the United Com­ ernment, and in the early 1970's in the Southtown Economist on July 20, 1977: munity Chest of Port Washington, N.Y., California State Assembly and Senate. THE ELDERLY AS VICTIMS OF CRIME in mv Sixth Congressional District, has As a Japanese-American, he has been (By Rep. MORGAN F. MURPHY) saluted and publicly recognized an in­ very active in Japanese cultural affairs After being brutally assaulted for the sec­ dividual or organization for outstanding in southern California. He has been a ond time in two months, Hans and Emma voluntary service to the entire commu­ member of the Southern California Jap­ Kable, both in their 70's arranged their best nity in the :fields of health, education, and anese Chamber of Commerce, an adviser clothes on their bed. Then they sat down to welfare. for the city of Gardena Japanese cul­ write a note which read: "We don't want to This year, the United Community tural class, general manager for the city's live in fear anymore." Shortly afterwards, Chest's Citizen of the Year Award, that Japanese cultural show, and also as they committed suicide. signifies the chest's high ideals of dedi­ president of the Gardena Valley Jap­ The fear which gripped this New York couple is of growing concern to senior citi­ cated and meaningful service, was pre­ anese Cultural Institute. zens, police officials, and legislators. The rea­ sented to the Residents' for a More Beau­ This institute, which has done so much son is not that older persons are victimized tiful Port Washington, a group pledged to increase community awareness of the more than other age groups, or that crime to preserving the community from po­ many achievements and contributions of against the elderly is dramatically increas­ tential environmental dangers. Japanese-Americans, has chosen to hon­ ing. Rather, as a recent House study noted, I have known the residents' chairman, or Mr. Kobayashi on August 10 at a it is the growing recognition that older Americans are "financially, physically, and Myron Blumenfeld, and president, Mrs. testimonial dinner. Through his work, emotionally the least able to cope with the Betty Forquer, for many years and have his concern for the welfare of his com­ loss or injury that results from a criminal followed closely their efforts in the areas munity, and more importantly, his out­ act." of beautification, community action and standing contributions to international The study, prepared by a subcommittee of education. This dedication has resulted amity and goodwill, the Japanese Gov­ the Select Committee oI. Aging, cited a num­ in a rebirth of active community interest ernment awarded him the highest honor ber of reasons why the elderly suffer more and concern for the preservation of the given to those people living outside than others as crime victims. Among those environment, specifically through pro­ Japan. In April of this year, he received noted: to About half of those 65 years or older are posals promote planned community the sixth class of the Order of the Ris­ retired and live on fixed incomes at or below growth and expansion. ing Sun for his efforts in fostering better the poverty line. Because of this, elderly I congratulate Mr. Blumenfeld, Mrs. relations between the United States and people are hurt more by a $20 theft than Forquer and the entire membership of Japan and through community service those with higher incomes and jobs. the Residents' for a More Beautiful Port and Japanese-American cultural ex­ Because they are not physically strong, Washington on their exemplary record change. older Americans have difficulty defending August 2, 1977 EXTENSIONS OF REMARKS 26263 themselves or escaping from danger. Young Agriculture Act of 1977 mall radar cross-section­ ens a first-strike capability. tain of its success. However, we intend to far smaller than the B-l's. develop only the long-range versions of the TABLE 2 air-launched cruise missiles. The short-range To minimize exposure to ground-based de­ Static Measures of Strategic Balance fenses: penetration at extremely low alti­ versions, intended for the B-1, are no longer tude. (The cruise missile would not penetrate (United States as percent of Soviet) necessary and they do not provide enough quite as fast as the B-1 would have but standoff capab111ty for either the B-52 or the would penetrate slightly lower. It would cruise missile carrier. have to overcome the same sort of airborne In addition, $99 million ts included for defenses, should the Soviets be able to de­ research on cruise missile carrier concepts velop them. However, I believe that coping 1977 and for improvements for the B-52, includ­ with the cruisemissile's tiny radar cross­ Warheads ------240 104 ing advanced avionics, electronic warfare section will be far more difficult for the So­ Megatons ------35 26 systems, electro-optical and infrared coun­ viets than coping with the B-ls ECM-per­ SALT Throw Weight______75 48 termeasures, and an advanced air-to-air de­ haps even by taking advantage of it--would Hard Target Kill PotentiaL ___ 160 28 fense missile. The amendment also includes have been.) $15 million for advanced cruise missile de­ Given assumptions as to scenario, the task velopment and $3 million to accelerate map­ to be done, costing ground rules. etc. that I ping for cruise missile guidance. Finally, $20 feel are the fairest and most realistic basis million is included for imorovements in our for comparison, coupled with assumptions re­ 1986 warning and attack assessment systems. garding Soviet defenses that, if anything, Warheads ------126 187 In closing, I strongly urge that you support favor the B-1 over the cruise missile, a B-1 Megatons------25 34 this program. It wlll continue our Triad August 2, 1977 EXTENSIONS OF REMARKS 26269 concept that guards against unexpected tech­ I am a member of the House Agriculture what purposes. These issues are of particular nological or strategic changes by making Subcommittee on Family Farms which called concern today due to new considerations of some pessimistic assumptions and including the Ag Land Fund hearings. As I listened food production capacity, changing weather systems with inherently dissimilar vulner­ to an overwhelming wave of opposition from conditions, foreign ownership, and the qim­ abilities to destruction before launch and to farm groups, labor, consumers, environmen­ inishing supply of prime agricultural land Soviet defenses. It will assure that none per­ talists, the General Accounting Office, and throughout the country. ceive us as falling behind the Soviet Union. the Department of Agriculture, I could In the case of Western Farmlands Ltd. It builds on our comparative advantage in hardly have suspected that in little over a several questions come to mind. For exam­ technology over the Soviet Union. It will week after the withdrawal of the Ag Land ple, the prospectus does not indicate who usher in a new era in bomber technology, Fund proposal, we would face a similar threat will be purchasing the land where and in replacing some of the traditional manned in California. Yet on March 19, the pro­ what amounts. This information is of major penetrators with vastly greater numbers of spectus for Western Farmlands Ltd. was filed importance if we are to determine with pre­ unmanned penetrators, much harder to for approval with the Department of Cor­ cision what the impact of this type of pro­ intercept and with great potential for tech­ porations here in Sacramento. posal will be on our family farmers, rural nological growth. It will not threaten de­ During those days of testimony in Wash­ communities, and the economy as a whole. stabllization of the balance. And it will save ington, I learned that "innovative agricul­ It is also important to know the specifics billions of dollars. That ls why I ask your tural investment" represented by ventures of the proposed lease agreements. Will there support. I will now be glad to take any ques­ such as Ag Land I and Western Farmlands be provisions for farmers to eventually buy tions you may have. is but another name for a very serious chal­ the land they are farming? Is there any lenge to our basic agricultural philosophy guarantee that the land will even be leased of protecting the family farmers. Continental back to the original owners? What are the Illinois Bank contended that times have guarantees that land purchased with West­ changed and farmers should now accept the ern Farmlands funds will remain in agri­ THE THREAT IN CALIFORNIA TO role of working someone else's land, rather cultural production and not end up in a FAMILY FARMING than seeking to be owners of that land. From new development of tract homes? its prospectus it appears that Western Farm­ Furthermore, the involvement of one por­ lands Ltd. would also have us believe that tion of the partnership in the Netherlands HON. LEON E. PANETTA ownership of farmland by the farmer ls an Antilles raises a whole series of questions OF CALIFORNIA outdated concept and that instead the farmer surrounding the issue of foreign ownership should settled for the role of tenant farmer. and who these foreign investors might be. IN THE HOUSE OF REPRESENTATIVES I don't believe that the farmers of this na­ Foreign ownership of our farmlands has al­ Tuesday, August 2, 1977 tion or the consuming public will accept that ways met stiff resistance from our farm com­ notion. munities. When the benefits of working U.S. Mr. PANETTA. Mr. Speaker, I would The concept of private land ownership is farmers are sent to foreign owners who have like to share with my colleagues recent firmly rooted in the history of this country. found a tax loophole to keep more of their testimony which I presented before the Thomas Jefferson viewed widespread owner­ earnings, it ls time for a more serious look ship as inherently good for the owners as well at just how broad a pattern of foreign own­ California Assembly Committee on Agri­ as a safeguard against tyranny. In a letter ership of our lands we should permit. culture. It deals with a subject which I to Madison, Jefferson wrote: "But it is not Western Farmlands Ltd. will be "limited" know is of deep concern to all of us. too soon to provide by every possible means only to the extent that the public and elect­ Large nonfarm corporate investors will that as few as possible shall be without a ed officials expose the full implications of gradually take over our agricultural sec­ little portion of land. The small landowners this type of proposal. For this purpose, in­ tor if considerably more attention is not are the most precious part of a state." vestigations such as the one being con­ Jefferson's sentiments reflect a philosophy ducted by the Assembly today should be ex­ paid to all proposals similar to that whi:h which remains a cornerstone of our society panded. The California Department of Cor­ is now being considered by the Califor­ today. It is important that we closely exam­ porations and the Department of Food and nia Department of Corporations. With ine new investment proposals, as well as the Agriculture should also conduct complete today's economic conditions, family conditions which encourage them, in light of inquires into all aspects of the issues raised farmers simply cannot compete finan­ what they mean to current trends in land by this plan. In addition, the State Legisla­ cially with large nonfarm investors who ownership-especially ownership of our prime ture and the U.S. Congress must seek new have great reserves of capital at their agricultural land. legislative solutions to rectify the current disposal. Now is the time to examine the In recent years, family farmers have been situation, for it is the responsibllity of subjected to a series of challenges to their elected officials to make sure that policy long-run implications of the trend to­ very existence. The rising costs of produc­ decisions reflect the real needs of every sec­ ward corporate farming in America. tion, escalating land prices, and adverse tor of our society. Already nine states have I urge my colleagues to join with me weather conditions have forced thousands of laws on their books restricting non-farm in considering a number of legislative small farmers out of agricultural production corporate involvement in agriculture. It is proposals which are due to come before and thousands of others to give up their time to take a close look at these statutes Congress in the future to correct the wide right to own the land they work day by day. as possible guidelines for future action. range of inequities faced by family farm­ Large non-farm corporate investors are In his review of the Ag Land Fund pro­ ers who are desperately trying to hold on gradually taking over, radically altering the posal Dr. Dawson Ahalt, staff economist for structure of our agricultural sector. Family the U.S. Department of Agriculture, raised to their land. It is important to the future farmers simply cannot compete financially the fundamental point of my opposition to of this country that the publi~ be made with large non-farm investors who have great the Western Farmlands idea, Dr. Ahalt con­ aware of the plight of the family farmer, reserves of capital at their disposal. Thus, cluded: for with increased understanding by peo­ farms have become fewer in number, larger "The proposed fund raises major philo­ ple living in cities as well as in rural in size, more specialized in the commodities sophical questions concerning the goals of communities will come new initiatives to they produce, and more energy intensive. It the American people with respect to the halt the disappearance of our prime ls my belief that these trends have dire structure of the farming sector. Should farmland and the family farmer. implications for the future of agriculture in large . . . organizations become assets holders America. and landlords? Or, should we continue to Mr. Speaker, I take this opportullit'Y Mr. Chairman, schemes like western Farm­ pursue the goals of individual ownership to include my testimony in the RECORD: lands can only hasten these trends. Although and control that have been fostered since TESTIMONY BEFORE CALIFORNIA LEGISLATURE Western Farmlands Ltd. claims that it seeks the beginning of this nation? Are there any ASSEMBLY COMMITTEE ON AGRICULTURE to "assist farmers to realize the new equity social and economic goals that would be Mr. Chairman and members of the com­ of their farmlands," the real impact of this better served by such arrangements? mittee: On Friday, March 11, in Washington, proposal will be to take advantage of farm­ "Such questions cannot be addressed on D.C. the Continental Illinois Bank of Chicago ers' desperate need for credit. The huge purely economic grounds, but must be announced its withdrawal of an application amounts of capital that such schemes have viewed from a perspective that considers for IRS approval of its farmland investment at their disposal will have the effect of elim­ longer run implications for the welfare of scheme called Ag Land Fund I. Continental inating, rather than assisting family farmers our system" in our agricultural sector. Illinois Bank, and the investment firm of It is the longer run implications that I Merrlll, Lynch, Pierce, Fenner, and Smith, The dumping of $50 milllon into the pur­ am concerned about today and it is these wanted to create a $50 mllllon fund for the chase of land in this state can only force up implications which we must begin to ad­ purchase of working farms in several states. land prices and consequently place our young dress during our deliberations regarding all Facing a great public outcry, and after three farmers at an even more serious disadvan­ future agricultural legislation. tage. days of Congressional hearings, the bank I am currently working on the develop­ withdrew its application for approval of Ag The important issues raised by this type ment of a complete package of · legislation Land Fund I. of proposal are who owns the land and for which I hope will alleviate several of the 26270 EXTENSIONS OF REMARKS August 2, 1977 inequities faced by family farmers by offer­ was it Mr. Lance? Lance agreed; $18 million paid for it and 75 percent above the market ing a wide variety of incentives for them to is hardly worth mentioning. The senators price. This timely rescue may solve most of stay in the agricultural sector, as well as listened while the chairman read aloud a Lance's finanlcal problems. The sale has not limiting non-farm corporate investment in message sent by Lance's trustee in Georgia, been completed yet. agriculture and closing tax loopholes. I am Tom Mitchell, stating that he was in final The most intriguing aspect of this tangle pleased to annuonce that the Subcommittee and "definitive" negotiations to unload is what it reveals about Lance's method of on Family Farms and Rural Development Lance's stock in the National Bank of Geor­ empire building, a method that seems shabby will be holding two days of hearings here in gia. The senators praised Lance for his can­ but ls-we're told by the experts-common California. in October to further examine the dor and sent him back home. That was the practice. Lance's big leap forward ca.me in changing trends of agricultural land owner­ end of it, they said. We don't airreo. 1975 when he bought a controlling interest in ship. Lance has not been smeared; he has sim­ the National Bank of Georgia. He accomp­ I look forward to your participation in ply undergone the close scrutiny that every lished this by taking out a personal loan of those hearings for only with cooperation be­ Carter administration official has had to suf­ $2.7 mlllion from the Manufacturers Han­ tween the state and federal levels of govern­ fer through. Only Lance has not come out over Trust of New York, making a "gentle­ ment can we come to an equitable and effec­ clean. The information dug up by New York man's agreement" with them at that time tive legislative program for the protection of Times columnist Willlam Sa.fire and by re­ that he would pay back the loan immediately family farmers, rural communities and the porters for the Washington Post was just if he should leave the bank. In effect, Man­ principle of individual land ownership in the kind the Senate and everyone else ought ufacturers Hanover decided to bet on him this country. to have before permitting a new official to personally, like a good horse, provided tha.t take over a. powerful job in the White House. he remained in , at the head of his Sa.fire, it's true, described the facts in his bank, where he presumably had easy access LANCE'S FINANCIAL WOES most slashing style, but the facts are dam­ to local money fiows. When he left to join aging in their own right. They show Lance to the Carter administration this year, he kept have been a hustler of a fam111ar kind, not his commitment to the New York bank, pay­ HON. ROBERT F. DRINAN in the big leagues, but big enough to get him­ ing off the loan with money borrowed from self in serious trouble. Lance doesn't seem to another bank, the First National of Chicago. OF MASSACHUSETTS have the knack of making tidy transitions. This ls where his problem gets sticky. Al­ IN THE HOUSE OF REPRESENTATIVES He hasn't been able to keep his reputation a though no one can prove that Lance intended Tuesday, August 2, 1977 pace ahead of his mistakes. As a result the it as a quid pro quo, he did order his Georgia. ba111ff stands outside the door. He is one of bank to open a non-interest-bearing account, Mr. DRINAN. Mr. Speaker, the August those businessmen of whom it can be said using company funds, in the Chicago bank 6 and 13 edition of the New Republic truly that they can't afford to work for the before it granted him a personal loan. carried a very interesting and penetrat­ government. The shift from private to pub­ That account has fiuctuated, growing from ing account of Bert Lance's mounting lic life has stopped his economic momentum, $50,000 before the loan was approved to a and with the loss of momentum his career ls high of $350,000 last April and dropping financial woes. The New Republic points in danger of coming unravelled. down to $200,000 today. Lance claims it is a out that whether or not Mr. Lance com­ The charges against Lance are two. First, routine and proper business arrangement, a mitted any illegal acts, we must wonder he is accused of having furthered his personal mere formality executed to make the Chicago whether he has shown sufficient sensi­ career by making and accepting questionable bank a corresponderut with his own bank in tivity in his own transactions to warrant loans, to the detriment of the National Bank Georgia. He said he did it to bring Chicago's the public's trust in his management of of Georgia and its stockholders. Second, he is ex~ertise to Atlanta. However, before the ac­ the Federal budget. In addition, the arti­ charged with having used his political con­ count was opened and before Lance asked cle raises important questions about the nection with Jimmy Carter to lure buslnes~ for his loan, Lance's bank already had access to the bank. The former business mistakes to similar expertise at the Continental Il­ deposit of $18 million of Teamsters' pen­ combined with the latter political blunders linois National Bank and Trust Company. sion funds in Mr. Lance's bank. may balance each other out and leave Lance's There was a non-interest-bearing account in I would like to share the New Republic bank no better or worse off for his shenani­ this bank already. In the hearing, Lance was article with my colleagues, and ask them gans. But for Lance's reputation-both finan­ not called upon to explain why his bank to carefully consider, in light of all the cial and political-the revelations are a net needed a second correspondent bank in Chi­ available evidence, Mr. Lance's fitness loss. Lance seems to have gotten ahead in cago or why he had falled to ask the first cor­ banking because of his political assets, and respondent bank for a. personal loan. The for the high position he holds. he seems to have gotten ahead in politics be­ facts suggest that he opened the second in­ The article follows: cause of his bank assets. But he excelled at terest-free account expressly for the purpose SEND LANCE BACK TO BANKING neither. It was the synergy that propelled of getting a personal loan-a violation of Bert Lance has done nothing illegal. That's him, a-nd the necessary severing of the link federal banking regulations. But no one has whait we're told, and we've seen nothing to between business and politics that comes proved it, and the Senate ls not interested. contradict it. Some may be satisfied to learn with his new job may undo him. The Comptroller of the Currency ls making that the man Jimmy Carter chose to head the The evidence for Lance's business failings an investigation. But of course that investi­ omce of Management and Budget is not a lies in the fact that his successor as president gation wlll deal with the question of lllegallty lawbreaker. But that's not the kind of assur­ of the bank has had to write off $2.8 million in the narrowest and strictly provable sense. ance we'd have expected to hear from the in "soured" loans since Lance moved to A judgment of serious impropriety need not Carter administration, and it's not the kind Washington. The market price of the bank's await the Comptroller's decision. we should accept. It doesn't go down well stock has dropped from around $16 a share So much for business mistakes. The politi­ after all those lectures during the campaign last year to around nine dollars a share today. cal blunder looks more serious. In 1976, even on the wickedness of Washington. No, Bert In the hearing last week, Senator Percy tried in the period after Jimmy Carter had been La.nee as we know him today does not fit the to help the witness by suggesting that it ls elected President, Bert Lance was negotiating Carter image. He comes from another tradi­ common for banks to write off a batch of old with the Teamsters union to place a large tion, the LBJ school of southern cronies, loans when a chief executive leaves-a form chunk of Teamsters pension funds in the shabby but not indictable. of housecleaning, he said. Lance agreed. But trust department of his bank in Georgia. The Senator Abra.ham Ribicoff, Democrat of e. loss of $2.8 million ls not easily swept aside. account was opened in February 1976 with Connecticut, who cha.ired a. congenial three­ It represents bad judgment in a measurable an $18 milllon deposit and since has grown hour hearing on Lance's finances last week, form. to $23 mllllon. When it opened, the Teamsters spoke for all his colleagues when he charged The drop in the value of bank stock also account was many times larger than any the press with having smeared Lance's repu­ hurt Lance personally because most of his other that ever had come the way of Lance's tation "from one end of the country to the prosperity has been built on credlt--loans bank. There's nothing corrupt in the trans­ other." The senators sitting around the dais from major banks in New York (and now action; it's just unseemly. were in solemn agreement: the press is alto­ Chicago). secured with stock in his own bank An official at one of the biggest New York gether too cruel to public officials. Everyone as collateral. Since his assets are about equal banks knowledgeable about the workings of on the committee understood how easy it is to his debts, the drop in the value of his bank trust departments, said last week that it was to commit little indiscretions. Percy, Heinz, stock has put him in a bind. He didn't want unusual for a bank not in one of the major Stevens-all the Republicans were in sympa­ to sell it as a loss (amounting to $1.6 mil­ money centers to win an account as large as thy. They asked a few bland questions, Percy lion). He cannot secure his debt without $23 million. He added that bank executives often giving the cues for the answer. At one holding onto his stock. Jimmy Carter's rules compete fiercely to win this sort of business; point he suggested that $18 mllllon worth of require him to sell his stock. And yet, selllng he couldn't imagine what a relatively obscure Teamsters' pension funds (deposited in his stock at a loss would drive him deeper bank in Goorgia could offer to do that a. bank Lance's bank) "might sound like a. lot of into debt while burning up his collateral. Ap­ in New York, Chicago or San Francisco money" but really, given that it was put into parently an angel ca.me along to buy the couldn'~ do better. In the hearing last week a trust account, it really wasn't very much, stock last week at about equal to what he Lance said that the Teamsters account was August 2, 1977 EXTENSIONS OF REMARKS 26271 the kind thait barely pays for itself. "It's lives ruined. This legislative remedy is TESTIMONY ,OF CONGRESSMAN DAVID L. really a service," he explained, a not very similar to the statutes enacted in nine CORNWELL profitable frill that's meant to attract cus­ States, including my own State of New Mr. Chairman, I want to thank you and tomers. When a senator asked how and why York. It is also similar to the approach the Members of the Committee for the op­ he had solicited the Teamsters money, Lance portunity to testify before you today. The explained that the general counsel of the taken in H.R. 432, legislation which I in­ troduced at the beginning of this Con­ blll I offer, co-signed by 60 of our colleagues, b&nk and one of the trustees of the pension is a simple one. It says that if the regular fund did a lot of business together. gress. I am pleased that the President delivery date for a social security check falls In 1975 and 1976 "those folk were trying has supported H.R. 432 in principle to­ on a Saturday, Sunday or Legal Holiday, then to get their business straightened out," and day. The portion of his drug abuse mes­ the check wm be delivered instead on the Lance wanted to give •em a hand. That was sage concerning marihuana follows: first regularly scheduled business date be­ all he said. Bert Lance happened to be in PRESIDENT'S MESSAGE TO THE CONGRESS ON fore. In 1976, an agreement was reached with charge of one of the six lucky banks that got DRUG ABUSE POLICY-AUGUST 2, 1977 the Department of Treasury and the Postal a share of these pension funds while the MARIHUANA Service to date and deliver benefit checks on Teamsters were trying to clean up their busi­ an earlier bank work day when the third of ness. '!'hat was before the government inter­ Marihuana continues to be an emotional the month, the regular delivery day, falls vened. Now. because the Labor Department and controversial issue. After four decades, on a Saturday or Sunday. With no need for has stepped in to exercise stricter control over efforts to discourage its use with stringent laws have still not been successful. More than additional appropriations, my blll makes two the funds, there is some doubt as to whether minor, yet important changes in that ruling. the Teamsters wm be able to keep their ac­ 45 mlllion Americans have tried ma.rihuana and an estimated 11 million a.re regular users. First, it would expand the policy to include count in Lance's bank and several others like the situation wherein the delivery date oc­ it. Labor recognized the Equitable Life Assur­ Penal ties against possession of a drug should not be more damaging to an individ­ curred on a legal public holiday that was not ance Society this year as the general man­ a weekend. Second, it would allow the checks ager of the Teamsters central states fund, ual than the use of the drug itself; and where they a.re, they should be changed. Nowhere to be delivered prior to the first of the and Equitable does not approve of the Na­ month in the rare instance when the third tional Bank of Georgia as a fiduciary. is this more clear than in the laws against possession of marihuana in private for per­ of the month came on a Monday legal holi­ We know little of the Lance-Teamsters con­ sonal use. We can, and should, continue to day. In making the 1976 decision, the Social nection and any attempts to inquire into it discourage the use of marlhuana, but this Security Administration did not include in public hearings would do the Carter ad­ can be done without defining the smoker as a these two provisions, claiming that statu­ ministration irrevocable damage. Perhaps criminal. States which have already removed tory law did not allow this prior month de­ there is nothing to be learned, but we are criminal penalties for marihuana use, like livery. The bill I offer would eliminate the certain that if Lance were working for a Ford Oregon and California, have not noted any statutory restriction and clear the way for or Nixon administration, there would be an significant increase in marihuana smoking. the implementation of this policy. investigation. Who wm conduct the inquiry The National Commission on Marlhuana and The need for the 1976 ruling was evidenced this time? Drug Abuse concluded five years ago that by the perennial complaints that Congress This second instance of bad judgment marlhuana use should be decriminalized, and received when the delivery date of the third closes the case. At the minimum Lance dem­ I believe it is time to implement those basic fell on a Saturday, Sunday or Holiday. In onstrated a remarkable lack of foresight. The recommendation5. the Saturday case, the check was delivered; short-term gain he and his bank may have Therefore, I support legislation amending however, because most banks were closed, derived from the Chicago loan and the Team­ Federal law to eliminate all Federal criminal the check could not be cashed until Monday, sters fund cannot possibly offset the damage penalties for the possession of up to one the 5th. In case where that Monday was a done to the administration. This is something ounce of marlhuana. This decriminalization holiday as well, the check could not be Lance ought to have known. Nineteen sev­ is not legalization. It means only that the cashed until Tuesday, the 6th. enty-five was the year Jimmy Hoffa appar­ Federal penalty for possession would be re­ If the Third fell on a Sunday or Monday ently was eliminated by a professional killer; duced and a person would receive a fine holiday, again the situation occurred where it was also the year Lance began negotiating rather than a criminal penalty. Federal pen­ the check could be neither delivered nor for the Teamsters' account, knowingly his alties for trafficking would remain in force cashed until the next business day. obscure bank had nothing to offer them ex­ and the states would remain free to adopt I need not elaborate upon the hardships cept his increasing political prominence. No whatever laws they wish concerning the marlhuana smoker. that this presents to a family or individual one with any political sense would have met who counts on timely delivery of the check with the Teamsters then. Yet Lance was still I am especially concerned about the in­ to pay for monthly rent, ut1lities, food and doing business with them la.st November, creasing levels of marihuana use, which may medical bllls. Over thirty-two million Ameri­ after the election. A man with that sort of in­ be particularly destructive to our youth. cans receive monthly social security benefits, sensitivity should not be asked to manage the While there is certain evidence to date show­ and in many instances, the social security nation's budget. Bert Lance should return to ing that the medical damage from marlhuana check is the main, if not only, source of private business. use may be limited, we should be concerned income. These recipients often budget their that chronic intoxication with marlhuana or money tightly, sometimes down to the last any other drug may deplete productivity, dollar. A two or three day h~atus, without causing people to lose interest in their social any available cash, the result of a Saturday environment, their future, and other more PRESIDENT CARTER ENDORSES AP­ delivery, places an unnecessary hardship on constructive ways of filling their free time. In those who dutifully paid in for years and PROACH OF H.R. 432 IN DECRIMI­ addition, driving while under the inftuence are legally entitled to the benefits. Had that NALIZING MARlliUANA of marihuana can be very hazardous. I am, 1976 ruling not taken place, a two day de­ therefore, directing the Department of lay would have occurred this year at the be­ Transportation to expedite its study of the ginning of September and December. A one HON. EDWARD I. KOCH effects of marihuana use on the coordination day delay would have occurred in April and and reflexes needed for safe driving. OF NEW YORK July. The proposal of my bill to include the Monday legal holiday situation, wm elim­ IN THE HOUSE OF REPRESENTATIVES inate the one last loophole in this ruling. Tuesday, August 2, 1977 The first time that it would be applicable TESTIMONY OF CONGRESSMAN would be in September of 1979, when the Mr. KOCH. Mr. Speaker, today Presi­ DAVID L. CORNWELL third falls on a Monday, Labor Day. The dent Carter transmitted to Congress his check would then, according to my proposal, message on drug abuse. It contained an be delivered on August 31st. The only neces­ important section on the problem of HON. DAVID L. CORNWELL sary adjustments for this prior-month de­ marihuana. The President urged that the livery would be to require that the Treasury recommendations of the National Com­ OF INDIANA put a notice on either the envelope or the IN THE HOUSE OF REPRESENTATIVES check alerting the recipients to the fact that mission on Marihuana and Drug Abuse the check is for August benefits usually re­ be implemented. He specifically endorsed Tuesday, August 2, 1977 ceived in September. The printing cost here the concept of removing criminal penal­ Mr. CORNWELL. Mr. Speaker, I would is negligible, especially in comparison to the ties while retaining a civil fine approach. like to submit the following testimony I cost of inconvenience that would otherwise In this way, marihuana use would not be made to the Social Security Subcom­ be borne by the recipient of the check. It has been asked of me whether this encouraged but marihuana smokers, who mittee of the Ways and Means Commit­ prior month delivery could distort the bud­ number in excess of 45 million, would not tee on July 27, 1977, for inclusion into the get in a hypothetical situation where there be criminally penalized and have their RECORD: could be thirteen payments in one year and 26272 CONGRESSIONAL RECORD-SENATE August 3, 1977 eleven in the next. This could only happen written and erased. A law cannot be. If we Lastly, let me state that as you well know if the October delivery date fell on a Monday are indeed serious about making this ruling we are not dealing here with government public holiday and our current calendar has permanent, we, the elected representatives gifts; these entitlements are earned benefits no public holidays on October 3rd. of the per.:>ple, should give this regulation which ought to be promptly delivered to the full torce of law. In cases like this, I I introduce this legislation with the be­ those who labored to earn them so they can strongly feel that we should not leave it up be used for the necessities of life. Without lief that wherever possible the law ought to the unelected bureaucrats to change regu­ to reflect our concern for those who receive, an additional appropriation of funds, we can lations as they see fit. It is Congress that expedite this, our responsibility. need, and have earned federal benefits by ls accountable to the people, and therefore virtue of their long work and service to the we should take the lead in setting the pol­ I urge you to coru;ider this modest, yet nation. The 1976 administrative ruling iS icies that so profoundly affect the lives of important proposal. just that; a ruling that can be easily re- millions of people in this country. Thank you very much.

SENATE-Wednesday, August 3, 1977 (Legislative day of Tuesday, July 19, 1977) The Senate met at 9:30 a.m., on the for the moment, I suggest the absence of bassador Extraordinary and Plenipoten­ expiration of the recess, and was called a quorum. tiary of the United States of America to to order by Hon. PATRICK J. LEAHY, a The ACTING PRESIDENT pro tem­ the State of Qatar; and William Bow­ Senator from the State of Vermont. pore. The clerk will call the roll. doin Jones, of California, a Foreign The second assistant legislative clerk Service officer of class 1, to be Ambas­ PRAYER proceeded to call the roll. sador Extraordinary and Plenipotentiary Mr. ROBERT c. BYRD. Mr. President, of the United States of America to Haiti. The Chaplain, the Reverend Edward I ask unanimous consent that the order Mr. ROBERT c. BYRD. Mr. President, L. R. Elson, D.D., offered the following for the quorum call be rescinded. I ask unanimous consent that the nomi­ prayer: The ACTING PRESIDENT pro tem­ nations be considered en bloc. Eternal God, who art our refuge and pore. Without objection, it is so ordered. The ACTING PRESIDENT pro tem­ strength, we commit our Nation and pore. Is there objection? Without objec­ ourselves to Thee. Thou hast written Thy tion, the nominations are considered and law in our hearts and we ask for grace EXECUTIVE SESSION confirmed en bloc. to live by it. Light up our daily work by Mr. ROBERT C. BYRD. Mr. President, Mr. ROBERT C. BYRD. Mr. President, Thy presence, so that even while we I ask unanimous consent that the Senate I ask unanimous consent that it be in or­ work we may be aware of Thee, monitor­ go into executive session to consider the der to move to reconsider en bloc the ing our actions, guiding our decisions. nominations on the Executive Calendar. votes by which the nominations were Midst all the busy shuttle of legislation, The ACTING PRESIDENT pro tem­ confirmed en bloc. shaped here into the fabric of law for pore. Is there objJction? Without objec­ The ACTING PRESIDENT pro tem­ the Republic, save us from being so en­ tion, it is so ordered. pore. Without objection, it is so ordered. meshed in the immediate mechanics of The clerk will report the nominations. Mr. ROBERT c. BYRD. I so move. our day as to lose the vision of the ulti­ Mr. BAKER. Mr. President, will the Mr. BAKER. I move to lay that motion mate kingdom whose builder and maker clerk withhold for just a moment? Re­ on the table. Thou art. "O Thou who changest not" serving the right to object-and I will The motion to lay on the table was abide with us now and forever. Amen. not object-I will advise the majority agreed to. leader that there is no objection to pro­ ceeding to executive session and that all APPOINTMENT OF ACTING PRESI­ of the nominations appearing on pages AMBASSADOR DENT PRO TEMPORE 2 and 3 of the Executive Calendar for to­ The second assistant legislative clerk The PRESIDING OFFICER. The clerk day have been cleared for consideration read the nomination of Peter R. Rosen­ will please read a communication to the and confirmation on this side. blatt, of New York, for the rank of am­ Senate from the President pro tempore bassador during the tenure of his service (Mr. EASTLAND). DISTRICT OF COLUMBIA COURT OF as personal representative of the Presi­ The assistant legislative clerk read the APPEALS dent to conduct negotiations on the fu­ following letter: ture political status of the Trust Terri­ U.S. SENATE, The second assistant legislative clerk tory of the Pacific Islands. PRESIDENT PRO TEMPORE, read the nomination of John Maxwell The ACTING PRESIDENT pro tem­ Washington, D.C., August 3, 1977. Ferren, of the District of Columbia, to be pore. Without objection, the nomination To the Senate: an associate judge of the District of Co­ is considered and confirmed. Under the provisions of rule I, section lumbia Court of Appeals for the term of 3, of the Standing Rules of the Senate, I hereby appoint the Honorable PATRICK J. 15 years. LEAHY, a Senator from the State of Vermont, The ACTING PRESIDENT pro tem­ ENVIRONMENTAL PROTECTION to perform the duties of the Chair. pore. Without objection, the nomination AGENCY JAMES 0. EASTLAND, is considered and confirmed. President pro tempore. Mr. ROBERT C. BYRD. Mr. President, The second assistant legislative clerk read the nomination of William Dray­ Mr. LEAHY thereupon assumed the I move to reconsider the vote by which the nomination was confirmed. ton, Jr., of Massachusetts, to be an As­ chair as Acting President pro tempore. Mr. BAKER. I move to lay that motion sistant Administrator of the Environ­ on the table. mental Protection Agency. RECOGNITION OF LEADERSHIP The motion to lay on the table was The ACTING PRESIDENT pro tem­ agreed to. pore. Without objection, the nomination The ACTING PRESIDENT pro tem­ is considered and confirmed. pore. The Senator from West Virginia is recognized. DEPARTMENT OF STATE NUCLEAR REGULATORY The second assistant legislative clerk COMMISSION THE JOURNAL read the nominations of Benjamin H. Read, of the District of Columbia, to be The second assistant legislative clerk Mr. ROBERT C. BYRD. Mr. President, Deputy Under Secretary of State; Rod­ read the nomination of Joseph Mallam I ask unanimous consent that the Jour­ ney O'Gliasain Kennedy-Minott, of Hendrie, of New York, to be a member nal of the proceedings of yesterday, Tues­ California, to be Ambassador Extraor­ of the Nuclear Regulatory Commission day, August 2, 1977, be approved. dinary and Plenipotentiary of the for a term expiring June 30, 1981. The ACTING PRESIDENT pro tem­ United States of America to Sweden; The ACTING PRESIDENT pro tem­ pore. Without objection, it is so ordered. Andrew Ivy Killgore, of Florida, a For­ pore. Without objection, the nomination Mr. ROBERT C. BYRD. Mr. President, eign Service officer of class 2, to be Am- is considered and confirmed.