September 23, 1974 EXTENSIONS OF REMARKS 32247 Osamu H. Matsutani Harvey B. Pollard Wayne E. Mohler Paul S. Ruggera James C. Myers Donald C. Thelen Michael S. Matteson Steven K. Shama John M. Moore Paul E. Sikkink Dennis A. Philipp Robert J. Tonell1 Thomas H. Dennis L. Zllavy Ph111p C. Nyberg Gene W. Smith Eugene B. Smith, ~. John M. Twitty McGlashan Wayne R. Ott Hary F. D. Smith, Jr. To be assistant pharmacists To be senior dental surgeon Billy H. Reid Wllliam H. Stroup Ronald A. Robinson Ray L. Walchle David Barash James R. McKnight Orlen N. Johnson David D. Royston Robert D. Willson John A. Boren Merle E. Milburn, Jr. Ralph E. Causey Paul F. Nelson To be dental surgeon To be assistant sanitary engineers Leopold J. Sollazzo Robert DeChristoforo Robert M. Shelley Paul S. Arell Christopher L. William R. Durbin, Jr. Edward D. Westmore- To be senior assistant dental surgeons Stanley M. Blacker Christman James E. Edge land Joseph v. Bean Paul E. Lovdahl Robert A. Dange: Rolley E. Johnson Patrick C. Blake Philip J. Mosen To be senior assistant scientists To be dietitian James A. Clark Roger A. Novak Stephen .P. Berardi- Jack E. McCracken Mar jorie B. Myrlanthopoulos William L. Cloud, Jr. David C. Pardo nelll Bradford G. Perry To be assistant therapist s Philip L. Graitcer DanielL. Pinson David L. Conover Michael Weisberg James c. Hamilton Roger J. Smith Richard A. Lasco Harold W. Egbert Howard L. Kelly Ray P. Vanderhook Francis W. Levy, Jr. Woodrow B. Lackey To be sanitarian Roy A. Taylor George A. Adams To be nw-se officers To be health services officers To be senior assistant sani tarians Bertha E. Bryant Jean A. McCollum Thomas R. Fewell Ruth B. Cleary Ellen I . McDonald Richard E. Gross Edwn.rd M. Hawkley Tanya T. Crow Annettl McLemore Richard A. Lemen Pettie A. Kwon Thomas P. Phillips Michael J. Sacoman To be senior assistant health .services officers Janet L. Lunceford Wanda L. Richardson To be senior veterinary officer Gerald G. Akland Brian W. Flynn To be senior LLSsistant nurse officers Norbert P. Page Harlan E. Amandus John H. Haire John D. Boice, Jr. Donald A . Hensel John P. Crowley To be veterinary officer AnneE.Gray James H. Brannon, Jr. Paul J. O'Donnell, Jr. Wi.lliam F. Cornett III Roger W. Broseus Thomas R. Ohlaber To be assistant nurse officer To be senior assistant veterinary officers Bascom W. Carlton, Robert D. Riesenberg Caroline A. Hager John D. Bacher Jr. Lary S. Schneiderman To be sanitary engineer Roscoe M. Moore, Jr. Joseph M. Cummings Charles K. Showalter Robert E. Rosensteel Richard :t,;. Race Charles W. DeBree Thomas C. Voskuhl To be senior -assistant sanitary engineers To be pharmacist Paul A. Dickson Thomas J. Withrow George L. Allen, Jr. Marius J. Gedgaudas Charles P. Veach John H. Eilert, Jr. Robert A. Zoon Allen Berkowitz Jerome J. Healey To be senior assistant pharmacisb Paul A. Feller Mark A. Brumbaugh P.eter C. Karalekas, Jr. Frederick J. Abramek Barry R. Gordon To be assistant health services offi:cers David J. Burton Howard B. Kelly Thomas A. Alpert Richard N. Herrier William M. Chapin, Howard C. Lerner Bruce T. Ferris Imants Krese Robert W. Brown Lawrence S. Ishii Jr. C. Bruce Smith C. Lewis Fox, Jr. JeffreyS. Lee Roger D. Eastep Gordon H. Jensen Bryan D. Hardin Peter D. Stead Bernard J. Gajewski Nelson A. Leidel Wyman M. Ford Stephen A. Maurer Bruce Immerman Gary B. Utter

EXTENSIONS OF REMARKS

PHILIP W. BUCHEN Yet 1.! the gentle, white-haired lawyer from strenuous staircase, he flops down uncere­ Grand Rapids seems securely installed at the moniously on the seat of his pants and shin­ center of power, he brooks no comparison nies up a step at a time. HON. WILLIAM A. STEIGER with departed Whlte House majordomo H. R. But as cautious as he has learned to be. OF WISCONSIN Haldeman. ••I provide only legal service,.. he there are tlmes when his legs simply betray IN THE HOUSE OF' REPRESENTATIVES emphasizes with a wry smile. "And I'm not him. Over the years, he has broken his knee the John Dean Gf the Ford administration three times in falls, and a Grand Rapids Monday, September 23, 1974 either." friend, the Rev. Duncan Llttlefair, recalls an Mr. STEIGER ot Wisconsin. Mr. In fact, the calm. philosophical Buchen, 58, incident in which he barely escaped serious Speaker, the new White House counsel seems very much an original in the White injury. Vacationing in Mexico, Buchen was House. The son of a Sheboygan, Wis. attorney hauling himself ,out of a cab when the driver is a native of Sheboygan, Wis., and the and his wife, he was stricken with what was pulled away without warning, throwing h im son of a renowned State senator in Wis­ then called infantile paralysis while a junior to the ground. "Phil didn't get angry,'' re­ consin. in high school. Though he was eventually members Dr. Littlefair. "He didn't cry or This week's People magazine carries able to walk agai_n, with difficulty and the bitch. It was just one of those mistakes, and an article about Phil Buchen which will, aid of a cane, he turned his energies to seri­ he got up and carried on with no fuss. That I know, be of interest to my colleagues ous scholarship. Graduating Phi Beta Kappa is the characteristic quality of the man." from the University of Michigan, he went on Though polio has compromised Buchen's and I urge them to get to know better to become editor of the law review. and in this outstanding counselor~ physical independence. he otherwise dtsplays 1941 set u.p a law office with Ford. The part­ a serene self-reliance. A voracious reader THE GENTLE CRIPPLED MAN THAT JERRY FORD nership was temporarily dissolved by World whose Grand Rapids home is Uned with shelf TRUSTfl War II, but Buchen's career was already upon shelf of books, he exercises his mtnd in Physically, the contrast is startling. Presi­ launched. "Phil came to Grand Rapids as a ways denied to his body. Explains his br.other ­ dent Gerald Ford is a broad-shouldered pow­ stranger," says the President's younger tn-law George Loomis: "If we go to play golf erhouse of a man. His Whitt: House counsel, brother Tom. "But a short time after Jerry or tennis, he'll take his briefcase to the club Phlllp W. Buchen, crippled by polio at the joined the Navy, Phil was asked to join the and read or go swimming. Maybe because of age of 16, is cerebral and visibly frail. Yet ever city's most prestigious law firm. By the time the charm he bas, he always manages to con­ since the two men met--during a University Jerry got back from the war, it was Amberg, vince us that he has a dozen things he enjoys of Michigan summer session in 1938--their Law and Buchen." as much as w.e enjoy golt.. He never makes friendship has been constant and close. It A compulsive worker, who until recently you feel uncomfortable that you're doing was Buchen who, withoat being explicitly shuttled back and forth between Grand something he can •t." asked, took on the ticklish task of planning Rapids and Washington with no visible sign An unapologetic intellectual, with a con­ an orderly White House transition long be­ of fatigue, he sometimes seems more robust suming interest In philosophy and religion, fore President Nixon considered resigning. than he ts. Unable to walk long distances without assistance, he occasionally resorts Buchen cultivates the simple pleasures as And it was the scholarly Buchen, moving well. He smokes a pipe regularly, and Grand quietly behind the scenes, who helped engi­ to a wheelchair and often needs help to climb stairs. "One of the most remarkable things Rapids friends say his favorite before-dinner neer the controversial pardon .of the former drink is a martini. He is not, all agree, a fussy President (Buchen argues that Nixon's state­ is the way he never lets tt turn him sour," eater. He is an ardent Detroit Tigers fan and ment of his Watergate failures constitutes an observes a fellow Ford aide. "It's very difficult also has a weakness for automobiles. One of admission of guilt. "Failure to act forth­ for him to move up stairs, but he doesn't his favorites was a tiny German-made Isetta, rightly when legal proceedings are in prog­ make a problem for you. He takes your arm which he outfitted with a special hand-oper­ ress,"Buchen says, "is a pretty strong ad­ matter of factly, making it a natural kind of ated clutch. A keen bridge and Scrabble mission of obstruction of justice"). thing." Sometimes, to negotiate an especially player, he is less acute when it comes to 32248 EXTENSIONS OF REMARKS September 23, 1974 music. A standing joke in the family is that forward. But before we look ahead, again, NEWSLETTER BY MR. ESHLEMAN Buchen can recognize only two melodies, let us mourn his passing, man and editor, if Tiptoe Through the Tulips With Me and Ah only briefly. Sweet Mystery of Life. On a good day, claims Perhaps the most appropriate tribute to his son Rod, a 26-year-old Michigan State the memory of this good man is to recall HON. EDWIN D. ESHLEMAN graduate student, he might also identify Tea that he took the position of editor of a news­ OF PENNSYLVANIA jor Two. Otherwise, says Rod, "my dad thinks paper committed to "independence of clique IN THE HOUSE OF REPRESENTATIVES that all music is just a derivation of those or faction," as The Bee's salutatory editorial two basic tunes." put it in its founding year, 1857, that Jones Monday, September 23, 1974 A high school athlete in football and base­ passes on that editorship-still free from Mr. ESHLEMAN. Mr. Speaker, I have ball before his Ulness, Buchen until recently influence and still independent. sent to my constituents my most recent swam a half-mile each day. Now, whenever In all, Walter Jones gave to The Bees 55 he can, he sWims in the nude at Washing­ newsletter. I am including the contents years of his life, 36 of them as editor. His of that newsletter in the RECORD at this ton's University Club, three blocks from the was a leadership firm in resolve, decisive in executive mansion and across the street from execution, unyielding in dedications. His point: the hotel where he and wife are living. position among courageous editors is secure REPORT FROM YOUR CONGRESSMAN, Buchen was divorced and his bride, Beat­ for all time. ED ESHLEMAN rice ("Bunny") was widowed when the two Walter Jones came to the editorship of REFORM SMEAR were married in 1947, after writing their own personal vows. "We felt the traditional cere­ The Bees in 1936 at the death of C. K. Mc­ One of the most used words on Capitol mony dated back to the days when parents Clatchy who represented the second gener­ Hill these days is reform. Campaign reform, arranged marriages," says Bunny. "We be­ ation of a. family direction of The Bees be­ in particular, has been widely discussed and lieved love and understanding were the gun in 1857 by James McClatchy. Thus, Jones finally acted upon in the 93rd Congress. greatest values." A former high school lan­ was but the third editor in a tradition which House action on a campaign reform came has survived 117 years, giving to this publi­ on August 8. Having sponsored and co-spon­ guage teacher, she supervises the Buchens' cation a rare continuity in American modest capital social life and looks after her sored several such bills, I was glad to be husband in ways he neglects. "He likes to journalism. able to cast a vote for political reforms al­ be comfortable," says son Ron, "but he He came to his assignment with 17 years though there were several features of the spends zero time on himself. My mother buys of close association with C. K.: As political legislation I thought could be strengthened. everything for him, and even tells him when editor, as a managing editor, as editorial Imagine my surprise and the surprise of to get a haircut." director of the McClatchy newspapers the about 163 of my colleagues when we were "Phil is not competitive," maintains Dr. last years of C. K.'s life. listed by the AFL-010 News as having voted Littlefair, pastor of Grand Rapids' Fountain He would be embarrassed by tribute. Suf­ to kill the campaign reform bill. The opinion Street Church. "He doesn't have to win. But fice it to recall, then, but a. few of the was based upon our vote to send the bill back this is not to say he isn't a strong person. projects to which he dedicated this news­ to the rules committee so that a. strengthen­ There is no meanness in him. He is not paper: ing amendment could be added. vindictive. He is tender, thoughtful, con­ The promotion of flood control and h·ri­ Maybe the content of that amendment siderate, a gentleman." gation; the extension of the Central Val­ helps explain why the AFL--010 News wanted Despite his confidence in Buchen's char­ leys Project; progressive statutes bearing to brand it as anti-reform. It would have acter, however, Dr. Littlefair is concerned on the general welfare-"people legislation," permitted union members to designate for his health. "Phil needs to be very care­ as he would put it-the preservation of the which candidates should receive the money ful of his resources." The minister explains, State Fair and Cal Expo and the State that is assessed from them for political con­ "He's not innocent or naive, but because Capitol, in Sacramento, and unfa111ng sup­ tributions. The labor bosses, who now control of his openness he is subject to being ma­ port for the military establishments in the that money, don't want reform touching neuvered. I am ~oncerned that the pres­ Greater Sacramento Community and in the their campaign kitty. sures of his new job will jeopardize his circulation territories of the three Bees. MORE BITE PER BUCK health. But I'm working with him to see that Also: Perpetuation of the Sacramento it doesn't." Buchen, who thus far has Municipal Utility District and defense of Pennsylvanians should be among those handled his 14-hour days and frequem the concept of public ownership of the Americans most anxious to see a shift of gov­ working weekends with apparent ease, seems basic utilities; encouragement of redevel­ ernment power out of Washington back to d1sposed to agree. "I find the volume of opment in the old slums; preservation of local areas. Federal financial aid is no bar­ paperwork disturbing," he says with char­ tlle Old City Quarter u.nd, more recently, gain for us. Last year, Pennsylvania was one acteristic mildness. "I personally would prefer the establishment of the Sacram,ento-Earl of 22 States that got less back from Wash­ a more leisurely pace." Warren Community Center. ington than its taxpayers sent to Washing­ In all that he undertook, Walter Jones ton. never lost sight of The Bee reader in the Pennsylvania taxpayers sent $1.03 to the scheme of things. He was firm in his resolve Federal treasury for every dollar they got that The Bees should remain "tribunes of back according to figures compiled by the WALTER PARKER JONES-NEWS­ the people," a phrase he often quoted from 'IIax Foundation, Inc. We were losers but not PAPERMAN-CALIFORNIAN C. K. McClatchy. heavy losers like Indiana that paid in $1.55 He loved this city. for every dollar of return or Connecticut at He loved its people. $1.53. He loved this newspaper. Who were the big winners? The District of HON. JEROME R. WALDIE But it was the love of an advocate who Columbia led the pack paying in 35 cents for OF CALIFORNIA constantly urged upon all who would listen every dollar received. IN THE HOUSE OF REPRESENTATIVES commitment to the better life and a faith­ OLD FRIENDS, NEW SETTING ful respect for the old principles of decency Monday, September 23, 1974 Sitting and talking issues with Jerry Ford and honesty in the conduct of affairs. is not a new experience: I've done it many Mr. WALDIE. Mr. Speaker, death has The best testament to Walter Parker times before in the .past eight years on the taken Walter P. Jones, editor of the Mc­ Jones, perhaps, is in The Bee readership and floor of the House of Representatives. in the laws of the city and the state upon But sitting and chatting with President Clatchy Newspapers. Walter Jones, as which he had immeasurable influence, editor of the Sacramento, Modesto, and Ford in the Oval Office at the White House through The Bees. In his exposes of abuse makes the experience a little different. A few Fresno Bees, made contributions to the in government-one such expose under Wal­ days after he had been sworn in I had that development and growth of central and ter Jones' direction was to bring to The opportunity. northern California that were and are Sacramento Bee the Pulitzer Prize-he thought government ought to be kept "an­ POLLUTION PARADOX historical in their proportions. swerable" to the people; he thought the According to National Review, two ecolo­ Mr. Speaker, the Sacramento Bee, Constitution meant what it said when it gists have discovered that rain water in Eu­ edited by Mr. Jones since 1936, published spoke for freedom of speech; and in all its rope and in the eastern U.S. is 100 to 1,000 an editorial tribute to his memory and I dealings with the people he demanded that times as acid as it used to be-in some cases, think it is eloquent and moving. At this government be the servant, never the mas­ as acid as pure lemon juice. These environ­ ter, of the people. mentalists report that the acidity very likely time, Mr. Speaker, I would like to insert This good and gentle man is gone. is stunting the growth of forests and crops. the editorial in the RECORD: He was greatly valued, in life. In death, But most interesting is what they point WALTER PARKER JONES-1894-1974 if men truly are judged by the good work out a.s the cause for the new problem. It Walter P. Jones Sr. was a strong man who they leave behind, and his was a full print­ seems that the anti-pollution devices on believed men and institutions should never er's measure, his memory will endure so industrial smokestacks which filter out visi­ look back, that they always should look long as The Bee masthead endures. ble matter are responsible. The dirty looking September 23, 1974 EXTENSiONS OF IrnMARKS . 32249 stuff that used to pour from the stacks neu­ weeks to absorb committee hearings, legisla­ small, residential and commercial, gov­ tralized the invisible acidic gases that stlll tive briefings and learn to know something ernmental and private, have been con­ escape, but now go out unmolested. of the personalities th.at shape policy on fronted with rapidly rising electric bills INFLATION FIGHTER Capitol Hill. Shown on the right are this year's in­ and substantial increases in gas bills. A There has been a great deal of discussion terns- Sue Paes from Millersvllle State Col­ further increase in gas rates is already recently about how to combat inflation. I, lege and Mike Thomas from Franklin and pending before the Public Service Com­ personally, have offered a series of anti­ Marshall. This was the first year that both mission and Potomac Electric Power Co., inflation proposals. But one of the more interesting ideas is interns chosen were not only constituents officials announced on August 28 that (requirement number one) but also attend­ they will seek additional rate increases contained in a piece of legislation that I ing schools in the 16th district. have cosponsored. This blll would readjust by the end of this year. Such increases tax rates downward based upon the climb of ST?ENDING CUTS will affect the entire Washington area, the cost-of-living. It should go without saying that when not just the District of Columbia, since As it is now, the Federal Government is we are looking for places to reduce Federal Pepco serves the Maryland suburbs and an inflation beneficiary. As the cost-of-liv­ expenditures, no part of the U.S. budget parts of Arlington County as well. ing goes up more money comes into the should be safe from examination and pos­ In additior... , because ::;::"epco sells pow­ Treasury through taxes because people are sible reductions. One of the most talked er through an interstate power grid to spending more and making more. Therefore, about areas for cutting spending is defense. the government has increased revenue that is Time and again, you hear it proposed to cut plants in Pennsylvania, New Jersey, and translated into substantially increased budg­ the budget by so much and take it all out upper Maryland, the impact of any rate ets. of Defense Department appropriations or to adjustments are regional in scope. Fur­ The legislative idea I have endorsed would finance this program or that using milltary thermore, any changes in local utility give the taxpayer rather than the government savings. Each year I see proposals of this rates will have a significant impact on the inflation break. Rather than the Treasury type covering numerous subjects-health, the costs of Government. As WMATA getting more revenue, the cost-of-living housing, transportation, education, etc.­ testified before the Public Service Com­ jump each year would be used to figure a totaling more than the entire defense appro­ mission last year, in 1980 when the sub­ downward adjustment in tax rates. Thus, priation. the government would be put on notice that Consistently, I have maintained that mili­ way system is operational, an increase of inflation will not produce more revenue but tary expenditures cannot be and must not one mil per kilowatt hour of electricity rather a steady decllne in governmental pur­ be a "sacred cow" when it comes to budget will cost the subway riders $710,000 an­ chasing power. And that thought should be cutting. Just as there is waste in social wel­ nually. Because of the immediate nature enough to keep Congress serious about hold­ fare spending, there is military waste that of this problem, its implications for Gov.. ing spending down to keep inflation under can and should be eliminated. But we must ernment costs, and its regional impact, control. never lose sight of a fact perhaps best articu­ we believe a prompt review is clearly PAST IS PROLOGUE lated by Sir John Slessor of the RAF in 1952. necessary by this committee. He stated, "It is customary in democratic Shortly after Federal price controls broke It is our intention to assure that dur­ down, a critical gasallne shortage developed. societies to deplore expenditures on arma- . ment as conflicting with the requirements of ing this interim period prior to the home In one state, trucks were permitted to keep rule government's taking office, there is their tanks three-quarters filled but pas­ the social services. There is a tendency to for­ senger cars were allowed only ten percent of get that the most important social service a an adequate and balanced investigation capacity. An automotive journal reported government can do for its people is to keep of the factors surrounding the current that there was a widespread belief among them alive and free." cost situation and complete consideration dealers and motorists that the problem was SOCIAL INSECURITY of consumer concerns prior to granting all a plot to increase gasoline prices. More and more concern is being expressed any future increases. In the Senate, a blll w.as introduced to set about the financial status of the social se­ The questions which the committee up a government corporation to search for curity system. Recipients are worried, work­ plans to explore at this proceeding in­ oil. Much talk was heard about running out ers feel overburdened and economists are clude: of petroleum reserves and the poor gas mile­ frustrated by the growing inability of social First. Why are higher rates charged for age of many cars. Development of oil shale security to cope with increasing demands. w.as proposed by a professor out in Indiana The problem is best outlined by looking lesser amounts of electrical consump­ while other experts favored synthesizing at a worker who retired last year after paying tion? For example, a small businessman fuel (an approach previously tried in Ger­ the maximum annual contribution together pays in the summer an average of 3.4 many and found quite expensive). with his employer since 1937. The total con­ cents per kilowatt hour for the energy he In the following months, gasoline prices tribution from both sources would have consumes, while the large industrial rose sharply. But crude oil production also amounted to $8,352. plants pay only 2. 79 cents for every kilo­ climbed (up 18 percent) and gasoline pro­ That retired worker along with his wife watt hour. duction rose 21 percent. The demand for new now are eligible to draw $399 a month. As­ Second. Why do rates vary for resi­ cars and for g.asoline dropped. By the end suming normal life expectancy and an infla­ dential users versus industrial users? of 1921, that gasoline crisis was over. tion rate of 2% percent (don't we all wish), Third. Are large users paying a fair STATED SIMPLY the couple will receive $80,000 in retirement benefits-almost 10 times the amount paid share of tt~t::: costs created by building One of my colleagues has noted that it larger plants to fill their needs? For ex­ took God 297 words to write the ten com­ in. mandments, Jesus needed 56 words for the Since contributions come nowhere close ample, according to the PSC's findings in Lord's Prayer, Thomas Jefferson 1,300 words to paying for benefits, a gigantic tax system the December 1973, electric rates case, for the Declaration of Independence, Abra­ will be needed to pay the bills. But those general service and customers account taxes have become increasingly burdensome for two-thirds of Pepco's total service ham Lincoln 266 words for the Gettysburg and a question exists about whether they can ,address, and the U.S. Government 29,211 or should go any higher. in terms of volume and revenues, and ac­ words to write a price order on cabbages. Meantime, millions of people are waiting count for most of Pepco's recent load WORK AHEAD for answers to the questions of how to pro­ growth in District of Columbia residen­ Three reform areas head the Congressional vide for continued retirement security and tial usage as a percentage of the total calendar for the rest of the year-tax reform, how to do it without adding to the growing grew by only 0.6 percent. trade reform and camp.aign finance reform. tax burden on an already overburdened labor Fourth. What are the advantages and In the tax and trade areas, we are awaiting force. They are questions and answers that liabilities of retaining the automatic committee action. Campaign fin.ance changes await legislative attention. "fuel adjustment clause." Bills have al­ have cleat'ed both the House and Senate, but ditferences must be resolved in a conference ready bee:..'l introduced in this session to committee before final action can be taken. REMARKS OF CONGRESSMAN abolish nationally aU or part of these Certainly, .another prlnclpsl area of Con­ BROCK ADAMS ON DISTRICT OF automatic clauses in utility rate struc­ gressional .concern is our lnflatlon problem, COLUMBIA UTILITY HEARINGS tures. but it now appe·a.rs specific remedy legislation We are particularly concerned with more likely wm get a full hearing next year the authority now vested in the Public rather th:an before the end of the year. HON. BROCK ADAMS Service Commission to undertake a STUDENTS ON SUMMER STAFF OF WASHINGTON thorough investigatlon of the utility rate One of the ·summer traditions in the Wash­ IN THE HOUSE OF REPRESENTATIVES structure and the resources available ington office is to supplement our statr with to this Commission for such work. two college students who serve as interns. Monday, September 23, 1974 In order to assure that a procedure They are assigned jobs that range from filing Mr. ADAMS. Mr. Speaker, during the is available for future representation of to research. In addition, they have several last 6 months, consumers, both large and consumer viewpoints, we are today in- 32250 EXTENSIONS OF REMARKS September 23, 1974 traducing legislation to immediately es­ THE LESSONS OF HISTORY to establish credits for businesses. Credit was tablish a people's counsel to represent extended on collateral that would not ordi­ na.rlly have met the requirements of the cen­ and appear for the people of the Dis­ tral bank. The loan banks were also charged trict of Columbia at all proceedings of HON. EARL F. LANDGREBE with selling wa.r bond subscriptions, and the Commission on rates or services of OF INDIANA these bank notes were immediately intro­ public utilities. The adversary process is IN THE HOUSE OF REPRESENTATIVES duced into circulation as legal tender. Finally, at the heart of this proposal and says, the Reichsbank was allowed to issue bank in effect, that consumers should be rep­ Monday, September 23, 1974 notes against only the collateral of short term resented by effective, able counsel whose Mr. LANDGREBE. Mr. Speaker, it has treasury bills. With the gold cover now gone, there was virtually no legal barrier to massive purpose was to represent customers in been correctly said that those who do monetizing of the debt. In other words, very a proceeding where there are conflicting not learn from history are condemned to early in the game it was decided to use the interests. repeat it. What we are observing and printing press rather than the powers of tax­ enduring in the present period of infla­ ation to finance the war. tion and high interest rates is not unique, Money in circulation increased sixfold dur­ it is a repitition of the experiences of ing the war. War loans raised close to 100 bil­ FURTHERING HUMAN RIGHTS other nations that could have been lions marks, but st111 paid only 60 per cent of avoided had the policymakers in the the war costs. Since there was little chance to buy consumer goods in wartime Germany, Federal Government learned the lessons much of the new money was hoarded. The HON. DONALD M. FRASER of history. Continual expansion of the German people were generally unaware of OF MINNESOT~ money supply must result in economic what was happening to the value of their IN THE HOUSE OF REPRESENTATIVES chaos. The historical examples demon­ money but exchange markets in neutral Monday, September 23, 1974 strating this proposition are many, yet countries saw the mark lose approximately every new generation believes that it is half its value during the course of the war. Mr. FRASER. Mr. Speaker, the Hen­ somehow exempt from the laws of eco­ At first the economic consequences of the nepin County .Board of Commissioners nomics and can escape the consequences war were masked. After the armistice, money in Minnesota last month adopted a pol­ came out of hiding and forced prices upward. which have always accompanied irre­ By January 1920, the wholesale price index icy statement to guarantee equal em­ sponsible fiscal policies. was at 12.6 (1914=1), having been only a lit­ ployment opportunities with the county Mr. Gerald Krefetz recently contrib­ tle more than 2 when the hostilities ceased. without regard to sexual orientation, uted a short article to National Review Prices stabilized somewhat in 1920 while the public assistance status or exoffender in which he discussed one of the more rest of Europe was undergoing a recession. status. This follows actions barring dis­ recent examples of the disastrous con­ During the course of the year the number of crimination in employment because of sequences of Government inflation of the marks needed to acquire a dollar improved sexual orientation taken by the Minne­ from 65 to 40. But 1920 was an interlude, the money supply, post-World War I Ger­ eye of the storm. apolis City Council and the St. Paul many. Perhaps the most ominous conse­ The government persisted in following an City Council. I brought these to the at­ quence of inflation is the radicalization expansionist policy, though the economy was tention Of Congress in the CONGRESSIONAL of the people. Mr. Krefetz speaks of­ relatively stable in 1920. It increased the is­ RECORDS of May 2-page 13057-and towering frustrations, bitterness, and sue of currency by half and nearly doubled August 6-page 27067. hatred-integral parts of the inflationary the national debt. At this time, the effects of To further the cause of human rights, process-[which] undermined the citizen's making the reparations imposed by the Ver­ confidence in the economy and, more im­ sailles Treaty began to be felt. Besides the I hope the Federal Government in its physical dismemberment (Germany lost 13 policies will carry out these principles. portantly, in the government. An unstable society is the first to welcome a man on per cent of her land and 10 per cent of her The Hennepin County Board resolu­ horseback, and it lis no coincidence that Hit­ people) , the nation lost all her overseas col­ tion follows: ler's beer hall putsch took place at the very onies and was obliged to give up her mel'­ RESOLUTION crest of the hyperinflation. Uncontrolled in­ chant marine, a significant portion of her in­ Whereas, The Equal Employment Protec­ flation is a deadly social disease. In Germany, ternal fleet, much of her railroad system's tion laws have changed since the County Pol­ it was directly responsible for the fall of the rolling stock, plus German investments ley on non-discrimination was passe<;l; and Weimar Republic and the rise of Nazism. abroad. The loss of profits from the fleet and overseas investments was catastrophic to Whereas, Hennepin County has an aggres­ I believe that this article is very im­ Germany's ability to make reparations pay­ sive Affirmative Action Department working portant, and I hope that some who may ments to the Allies. In addition, the Allies to see to it that we are in compliance with all read it here in the pages of the CoNGRES­ initially demanded 269 billion gold marks to ordinances, laws and guidelines; and be paid in 42 annual installments. Whereas, Our existing Policy Statement is SIONAL RECORD will learn a lesson from Besides the reparations, the government now out-of-date, Now Therefore Be It history. also had to provide for war victims and try Resolved, That the followh1g statement be The article follows: to service the debts on the war loans. Annual adopted by the County Board as the official INFLATION: THE GERMAN EXPERIENCE government expenditures in the early Twen­ Policy Statement of the County as regards (By Gerald Krefetz) ties were two and three times the govern­ Affirmative Action and Equal Employment Double-digit inflation is a new experience ment's income. These deficits were "funded" Opportunity. for this generation of Americans. Until now, by the printing press. Throughout 1921 and 1922 the government "It is the Policy of Hennepin County Gov­ that sort of annual increase in the cost of liv­ maintained its policy of unrestricted growth ernment to provide equal employment op­ ing was considered a foreign phenomenon, at­ tributable to incompetent economic planners, and mandated easy credits to business. Dur­ portunities without regard to race, color, re­ ing 1922 the Reichsbank's portfolio of com­ ligion, age, sex, disability, martial status, military dictators, defective central govern­ ments, or loose morals. Today we realize that mercial paper and bankers' acceptances rose sexual orientation, public assistance status, inflation is not due to loose morals but to from 1 billion marks to 422 billion marks. ex-offender status, or National Origin. This lose monetary policies. The first modern Within the course of the year the govern­ Policy applies to all phases of employment in­ country to learn that sad lesson was the Ger­ ment had increased its total credits by one­ cluding, but not limited to, recruitment, se­ many of the 1920s. We may not be on the third. Moreover, the interest rate for these lection, placement, promotion, demotion, same road, but we are headed in a similar credits was kept artificially low-at 5 per transfer; lay-off, recall or termination; rates direction. cent. As the hyperinflation moved to a blow­ Just as Lyndon Johnson thought that the off, the discount rate moved up to ao per of pay or other forms of compensation and cent and finally to 90 per cent. By this time selection for training; to the use of au fa­ United States was rich enough to afford guns and butter when the Vietnam War escalated, the prevailing interest rates were meaning­ cilities and participation in all County-spon­ less, since -the inflation rate was between sored employee activities. the German administration was reluctant to tax the public to anywhere near the extent 3,000 and 4,000 per cent in 1922. By mid- "This Policy shall be periodically brought necessary to fight the First World War. The 1922 it became obvious to the man in the to the attention of the supervisory force and government assp.med the hostilities would be street that something was terribly wrong shall be administered at all levels with a posi­ over in a "lightntn-g campaign." with the German economic system. The value tive and supportive attitude. In the first week of the war, in August 1914, of money melted away like butter on a hot "It is the responsibility of every Supervisor the government suspended redemption of skillet. within the County to ensure the affirmative bank notes in gold. At the same time, it set From the exchange rate of 48 marks to the implementation of this Policy." up loan banks whose principal purpose w~ dollar in January 1922, the rate moved to 1 • ) • I ' ' ' ' 1., ( ~ I ) 1 ' ~ \ ' f September 23, 1974 EXTENSIONS OF REMARKS 32251 4,280 a year later. The Reichsbank was an tice of discounting treasury notes to create money fast enough to keep up with the rise autonomous agency and did not have to more paper money. Eventually, a new Reichs­ in prices-has its counterpart today in sug­ print money at the behest of the govern­ mark was introduced in 1924 with a 30 per gestions that the rate of money growth be ment. But, as privy councillor Von Grimm re­ cent backing. The combination of a limited measured in "real" terms, minus the rate of marked: "The Reich had to resort to the currency supply, an end to the Ruhr con­ inflation. The irony of this suggestion is that Reichsbank if it was to prolong its existence, flict, a limited and more realistic reparations the "real" money supply fell sharply in all of and because the point at issue was the sur­ schedule, and the backing of the new Reichs­ the worst inflations in history. When people vival of the reich, the Reichsbank did noi marks with gold gave Germany a stable say that money is "tight" these days, they regard itself justified in refusing." currency for the first time in a decade. But mean that it takes a lot of money to buy The German infiation differs somewhat more than any other factor it was the limited things at rising prices-which is just anoth er from our own predicament in that Germany issue of Rentcnmarks that gave the new way of saying that without a lot of money, set out to spend itself rich. The government currency credibllity. prices couldn't continue to rise. felt that if the four million demobilized Nearly everyone had been a victim of the There are lessons to be learned from epi­ German soldiers could not be purposefully inflation. Government and industrial bonds, sodes of runaway inflation, and signs that pensions, annuities-all evaporated with de­ we have not yet learned them. employed, Bolshevism would surely be the preciated money. Those owning rental prop­ consequence. And for a while it seemed that erties were deprived of their income when the government had indeed succeeded in the government froze rents, but if they kept spending itself rich. On the surface, business their property throughout the period they seemed to flourish on cheap credits. Business­ came out ahead. Anyone clever enough to MORE OVERSIGHT, LESS SECRECY men borrowed extensively to purchase raw exchange money for tangible goods-wheth­ materials, finance inventories, and especially er art, antiques, precious metals, or com­ to acquire other businesses. The marks were modities-also preserved much of their HON. EDWARD J. DERWINSKI virtually free since they were repaid in capital. An adjusted index of common stocks grossly devalued money. As a result, there OF ILLINOIS fell roughly by half from 1918 to the 1923 IN THE HOUSE OF REPRESENTATIVES was hyperactivity in the basic industries and stabilization. Not a bad performance, all very little unemployment. But before long things considered, but not an ideal hedge Monday, September 23, 1974 there was an overabundance of machine either. At the stabilization, there were some tools, shops, and heavy equipment. So much efforts at restitution to bank depositors on Mr. DERWINSKI. Mr. Speaker, as a energy was devoted to wheeling and dealing the order of 15 per cent to 30 per cent of member of the Foreign Affairs Commit­ and speculating in goods and currency that the original deposits. All long term debts tee, I have long felt concern and neces­ industrial output was actually less than be­ were revalued and holders of bonds and mort­ sary frustration over the manner in fore the war. gages received 25 per cent of their original which the Congress has dealt with the As the inflation progressed, the position of value. Central Intelligence Agency. However, consumers and of labor deteriorated. Con­ Traditionally, historians have suggested sumers and pensioners on relatively fixed that the expropriation of the middle classes I recognize the unusual complications incomes had difficulties in purchasing to­ destablized the classbound structure of Ger­ involved with intelligence agencies just bacco, beer, food, and clothing, and those man society. The strongest supporters of a as I recognize the complexities that we industries began to suffer. In 1922, the cost democratic republic became paupers, and and other free world nations face in this of living started to rise by roughly 20 per cent thus politically impotent. Towering frustra­ delicate field of intelligence and counter­ a month, so that by the end of the year tions, bitterness, and hatred-integral parts intelligence. labor's share of the national income was cut of the inflationary process-undermined the An editorial in the Tuesday, Septem­ by half. Organized labor tried three distinct citizen's confidence in the economy and, approaches to the problem of declining pur­ more importantly, in the government. An ber 17, Chicago Sun-Times is of special chasing power. First, it tried to relate wages unstable society is the first to welcome a interest not only because of the dis­ to the official cost of living index, but this man on horseback, and it is no coincidence closure of the CIA but more specifically index was tardy and too artificial to be of that Hitler's beer hall putsch took place at the role of Secretary of State Kissinger much help. Then it tied wages to the mark's the very crest of the hyperinflation. Uncon­ in the latest controversy involving the value as determined in the daily exchange trolled inflation is a deadly social disease. Agency. I personally believe that the rates out of New York. But even this prompt In Germany, it was directly responsible for Secretary of State should not retain his indicators fell behind actual purchases. the fall of the Weimar Republic and the Finally, in August 1923 wages were based on rise of Nazism. position as Chairman of the National price levels which were expected to rule in It is probably true that "it can't happen Security Council. This editorial, "More the week wages were received. here," that we are too sophisticated to drift Oversight, Less Secrecy" follows: In some factories, workers were paid three into a hyperinflation. Still, there are omi­ MORE OVERSIGHT, LESS SECRECY times a week so their wives could buy what nous parallels: The latest disclosures concerning the role little food was available. Farmers stopped In the early stages of inflation, people are played by Sec. of State Henry A. Kissinger sending their food to market, and instead apt to consume less in order to maintain the and the Central Intelligence Agency in the resorted to barter. In the fall of 1923 an egg purchasing power of their savings. When in­ internal affairs of Chile demonstrate anew was se111ng at 80 billion marks and a loaf flation is expected to continue or get worse, that Congress must take a more effective of bread for 200 billion marks. Ladies of the however, people rush to unload money before part in making and watching over foreign night were offering their wares for 6 billion it buys even less. Personal savings are still policy. marks and a cigarette. The wholesale price high in this country, but there are signs that Our Washington Bureau chi£f, Thomas B. index moved from 75,000 in July 1923 to this is changing. Opinion polls show more Ross, reported Sunday that he learned from 750 billion by November 15, 1923. On the and more people anxious to buy now to beat key intelligence officials that Kissinger same day, the dollar was worth between 2.5 the rising prices. Businessmen have been played an active, aggressive and personal . billion marks and 4.2 trillion marks, depend­ borrowing and accumulating inventories at role in ordering secret CIA activities in ing on time, geography, and source of quota­ record levels, despite the slump, to avoid Chile. Some $11 million was spent in efforts tion. It was, one observer noted, "the end paying higher prices later. This psychology to destabilize the government of then Presi­ of money." can cause the rate of spending to accelerate, dent Salvador Allende. This meddling was Try as it might, the Reichsbank could not so that each dollar has more inflationary im­ organized by the 40 Committee, a supersecret keep up with the astronomic demand for pact than before. intelligence . organization that. ofllc.lals sald money. The public's expectation of still more As Germany once tried to pay its debts to became a one-man operation headed py Kis­ funny money drove down its value faster o~her nations by printing money, so should singer in his role as chairman of the National . than it could conceivably be printed. Some Western nations, the London Economist and Security Council. . companies and industries printed their own others are now suggesting, offset their bal­ . CIA opera~ions _are. suppo&e~ to b,e mon­ scrip: at the height of the crisis 172 private ance of payments deficits, caused largely by itored by the Appropriations _ancl Armed emergency currencies circulated. t~e price of imported oil, by "reflating" de­ Services committees of both nouses of Con­ To end the staggering price inflation and mand. gress. But over the years, the committees concomitant social unrest, the government As German officials were willing to tolerate have failed to do their jobs, in spite of the launched a currency reform by introducing any level of inflation as the price of spurious fact that Congress and the electorate have new money-the Rentenmark--on Novem­ "full employment," many politicians and po­ repeatedly been misled and possibly even lied ber 15, 1923. One tr111ion old paper marks litical economists are already suggesting ex­ to about the CIA's various activities. And were equal to one Rentenmark. Though the pansionary pollcies after only the slightest the 40 Committee has never been monitored new currency had no real backing, (ostensi­ upward wiggle in the unemployment rate. by Congress at all. Kissinger himself has been bly it was backed by debentures on land Finally, the characteristic thoug~ para­ treated With kid gloves. His diplomatic tri­ and factories, it was issued in strictly limited doxical complaints of a money "shortage" umphs have endowed him with such awe amounts. The government ended its prac- during hyperinfiations-the inability to print that some members of Congress are too timid 32252 EXTENSIONS OF REMARKS September 23, 1974 to treat him the way they treat other Cab­ ley of pistol fire, abandoned his pistol for direct line of fire beside Cpl. Batley, with the inet members. the .12-gauge shotgun he had with him and kriowledge that a fellow officer had been seri­ We have long believed that the CIA should fired again, striking the other suspect, who ously injured, maintained his composure be compelled by law to restrict its foreign fell to the ground. He then fired a second and, at great personal risk, remained at his actiVities to the collection of 1ntell1gence. shotgun blast striking the first wounded position and fired upon the perpetrator, Congress also needs to revise the administra­ suspect, who fell to the ground mortally killing him instantly. tive setup under which the state Depart­ wounded. The other suspect who was on the There is no doubt that this action by ment and the NSC are headed by the same ground then rolled over and again aimed Officer Caufiiel saved the life of his brother person. The potential for abuse is simply too his pistol at Detective Perry. Detective Perry policeman. great when these two agencies are headed by fired a third shotgun blast, striking th~ the same man. suspect in the head. The other two suspects. who were still in the office, turned their · weapons over to a hostage and surrendered, FIGHTING BACK AGAINST leaving the building with their hands in the CONTROLS A TRIBUTE TO FREDERICK PERRY air. The entire $40,000 was recovered and there was no loss of life to the hostages, all of HON. LAWRENCE J. HOGAN whom have fully recovered. HON. PHILIP M. CRANE OF ll.LINOIS OF MARYLAND CHARLES TROYER, ANNE ARUNDEL COUNTY, MD. IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES Officer Charles Troyer of the Anne Arundel County Pollee was working at the Baltimore­ Monday, September 23, 1974 Monday, September 23, 1974 Washington International Airport on Febru­ Mr. CRANE. Mr. Speaker, in discuss­ Mr. HOGAN. Mr. Speaker, three offi­ ary 22, 1974, at 0700 hours when a suspect, later ~dentlfied as Samuel J. Byck, attempted ing inflation and other economic diffi­ cers of the law from my State have been to highjack Delta fiight 523. Samuel Byck culties facing the Nation we tend to honored for heroism and named Po­ shot and killed Airport Police Officer George mistake cause and effect, and tend to licemen of the Year for 1974 by the Ramsburg before he entered the aircraft, assign blame for problems to those who Maryland Fraternal Order of Police. then shot the co-pilot, Fred Jones, who also really seek to solve them and look for One of these brave officers is from died, and next attempted to force the pilot, Reece Lofkin, to fiy the aircraft to Washing­ solutions from those who are unable to Prince Georges County, which is part of provide them. my district. All three men deserve pub­ ton and crash it into the White House in lic respect and gratitude. order to klll the President. No matter what the economic diffi­ Offi · ~er Troyer heard the first shots and At the risk of their own lives, they culty, whether it is inflation itself or one rushed to assist Officer Ramsburg. He found of its constituent elements, such as the reacted quickly and effectively to pro­ Ramsburg shot and dying, ran onto the jet­ tect life and property in dangerous way, and spotted the hlghjacker in the door­ increase in the price of petroleum prod­ emergencies. Their conspicuous gal­ way of the plane. Officer Troyer exchanged ucts, there are those who believe that lantry is in the best traditions of law shots with the highjacker at that time. After Government intervention in the econ­ enforcement. enlisting the aid of another officer, Officer omy is, somehow, the solution. Thus, I would like to include highlights of Troyer, without any regard for his own safe­ whatever the problem, there are repeated ty, returned immediately to the aircraft and calls for wage and price controls, import their citations in the RECORD: engaged the highjacker in a gun duel or export quotas, tari1Is, and a whole FBEDERICK PERRY, PRINCE GEORGES CoUNTY, through a window. The plane still had nine array of other coercive policy ap­ MD. passengers on board, in addition to the two proaches. On March 13, 1973, at approximately 1500 pilots and a stewardess. Officer Troyer hours uniformed officers of the Prince shouted to the passengers to exit through What those who discuss economic emergency windows. They did this, and at George's County Pollee Department re­ questions in such simplistic terms fail to that time the hlghjacker appeared in the understand is that government, rather sponded to a silent hold-up alarm at the open, aimed his pistol at the pilot and shot main omces of the Canteen Corporation in him several times. At this point, Officer Troy­ than being the solution to economic tur­ Ardmore, Maryland. The first officer arriv­ er shot the highjacker, who died as the po­ moil, is more often its cause. ing on the scene observed through the glass­ lice entered the aircraft. Writing in the Wall Street Journal enclosed front office four suspects wielding A gasoline bomb was found on the air­ of November 30, 1973, Prof. Philip W. .38-ca.llber revolvers, holding several em­ craft by Officer Charles M1ller. It was taken Graham noted that- ployees at gunpoint. The officer radioed for from the runway by Officer Lowell Todd of assistance and, once he was observed by the Crises, as opposed to simple scarcity, re­ the Airport Police, who risked his life by sult from market disruptions; and the only suspects, all of the employees were herded carrying the bomb approximately 500 feet into a rear restroom area of the building sector of society which possesses the power from the plane and covering it with a bomb to disrupt a large market is the government. and held as hostages. Numerous uniformed blanket. Officers Miller and Todd assisted omcers and detectives arrived on the scene throughout the entire operation. How are the American people to un­ and surrounded the building. Gun shots derstand that Government-through were heard from within the building and deficit spending, an artificial increase in it was later learned that four hostages were HENSON THOMAS CAUFFIEL, MONTGOMERY the supply of money and in a number crttically wounded and 21 others severely COUNTY, MD. of other ways-is largely responsible for beaten. At approximately 0030 hours on April 4, At approximately 1530 hours, the suspects 1973, Cpl. Harry E. Batley, Jr., was dis­ inflation and other economic problems attempted to leave the building with approx­ patched on a "burglary in progress" call and if American businessmen do not tell imately $40,000 in cash. Detective 1st Class was assisted by Officer T. T. Cauffiel. After them the economic facts of life? The Frederick Perry observed two of the suspects entering the building, Cpl. Bailey came upon answer, unfortunately, is that there are with one hostage attempting to leave by a the perpetrator; who was in the process of few businessmen who defend free enter­ side door. Detective Perry crawled to a for­ breaking into a file cabinet. Cpl. Bailey an­ prise and many who support disastrous ward position ahead o! other police person­ nounced his presence and advised the sub­ governmental intervention in the econ­ nel and positioned himself behind a. wire ject that he was •mder arrest. At this time, omy. :fence on the edge of the parking lot at the the perpetrator fied to a fieet of trucks, north side of the building. Endangering his parked in the garage area of the building. Prof. Henry G. Manne of the Univer­ own life and disregarding his personal safety, Officer Cauffiel had entered the building sity of Rochester notes that- Detective Perry moved to within 45 feet of to assist Cpl. Bailey. The perpetrator could Businessmen ..• must take a good share a vending truck behind which the suspects, be heard running to the rear of the trucks. of the blame for the present needless turmoil. With the hostage, were taking cover. Whlle Cpl. Bailey and Officer Cauffiel, who were in Much of the public, correctly or not, looks to the two suspects were attempting to fire at front of the trucks, ran after the subject. the business community for proper guidance a group of officers, Detective Perry got the When the perpetrator approached the last on economic issues. And sa, when President attention of the hostage and motioned hiln truck in line, he came to the front of the Nixon proclaimed wage and price controls on to step behind another truck and away from vehicle and opened fire. The shots struck August 15, 1971, 1n what may yet prove the the suspects. Detective Perry then rose to Cpl. Bailey twice, and while Cpl. Bailey was most disastrous executive decree in Ameri­ his feet in clear view of the suspects and lying wounded on the fioor, the subject can economic history, the public could surely fired one shot at the suspects from his serv­ aimed his gun at Cpl. Batley, attempting to not help noticing that the loudest approval ice revolver, str1k1ng one of the suspects in fire another shot. for the move came from the business the a.rm. Detective Perry, then under a vol- Officer Cauffiel, who was standing in the community. 1 . ' \ '•I j, .. ·11, ( "' 1 it t1 l ·• f September 23, i974 EXTENSIONS OF REMARKS 32253 Speaking before the 78th annual con­ stated mainly for its shock value. Still, as was dential warning on national T.V. He makes vention of the National Association of nicely explained by Professor W. Philip Gra­ a call for patriotic, voluntary sacrifices by Manufacturers on December 6,1973, Pro­ ham in the Wall Street Journal of November every citizen and inevitably ends by saying, 30, 1973: "Crises, as opposed to simple scar­ "together, under my leadership, we will see fessor Manne declared that-- city, result from market disruptions; and the this through," or words to that effect. I want to call on the business community only sector of society which possesses the The next morning's papers, however, be­ of the United States to announce publicly power to disrupt a large market is the gov­ gin to carry subtle suggestions by third or and vigorously . . . that they will not co­ ernment." Professor Graham is correct. How­ fourth echelon otncials about the possible operate with the government beyond the ever, the government, plus the mass media necessity for regulation and controls. This legally compelled minimum in developing or and one hell of a lot of economic boobs, can is usually followed by a series of gradual complying with any control programs .... also create an hysteria that many people are escalations approaching real compulsion Businessmen should help the public under­ presently mistaking for a real crisis. and the inevitable aggravation of the eco­ stand that morality, in the case of arrogant, Of late, it is difficult to find a news story nomic circumstances. At the moment, to its intrusive, totalitarian laws, lies in the barest on the subject that is not headlined "Ra­ great credit, the administration in Wash­ possible obedience and in refusal to cooper­ tioning Necessary to Cure Fuel Shortage," or ington is holding fast. But the pressures ate willingly beyond the letter of the law. words to that effect. T.V. commentators of from Congress and elsewhere for fuel ra­ The business community should have the erudite voice and visage and editors turned tioning and tighter price controls may soon courage to inform the public that the stakes amateur economists tell us daily that some become irresistable. are very high and that they are the potential form of rationing is required to deal with the Other segments of government may be victims. fuel shortage. A large and perhaps crucial even better served by our new found crisis. segment of the literate public actually be­ The huge federal bureaucracy, fast becom­ Professor Manne's address as pub­ lieve that the "cure" for a shortage is some ing the most potent political force in the lished in the April 1974 issue of Reason form of government rationing. Well, there are country, has developed sensitive antennae magazine. I wish to share it with my col­ a lot of things rationing can do-all of them for programs that guarantee larger govern­ leagues and insert it into the REcoRD at bad. But one thing it can absolutely never ment payrolls. General controls during this time: do is to increase the total supply of any World War II required over a quarter of a fFrom Reason magazine, Apri11974] commodity. , million paid administrators, so control of I was encouraged recently by a headline the vastly larger present economy would F!GHTlNG BACK AGA!NST CONTROLS over a recent column on this subject by Pu­ promise several million new jobs at the least. (By Henry G. Manne) litzer Prize winning Washington Post col­ After all, it is hardly imaginable that con­ By now every member of this audience umnist David Broder. That headline really trols would or could be stopped merely with must have heard every argument the mind laid it on the line. It stated simply: "Poli­ gasoline and fuel oil. of man can conceive for and against con­ ticians Fooling Public on Crisis." But my Next we consider the Congress and a wide­ sumer rationing, government allocation pro­ optimism was short lived. It turned out that ly held belief that Congress in recent years grams, excess profits taxes, a.nd price controls, Mr. Broder was simply angry about Congress' has given up tremendous powers to the to cope with the so-called energy crisis. And delay in adopting what he considered urg­ President. This belief created some minor everyone here knows the reasons commonly ently required legislation to ration gasoline consternation last week when the Senate assumed to explain the crisis. and set prices. He thought that the mem­ adopted the National Energy Emergency Act The blame goes, in approximately declining bers of Congress lacked the guts to adopt the of 1973, or, as some said, our economic Gulf order of magnitude, to price controls; Federal politically unpopular but economically cor­ of Tonkin Resolution. On paper, that bill Power Commission pricing policies for nat­ rect controls. Apparently, sometimes a little gives the President the greatest peacetime ural gas; various efforts of both reasonable guts can be a dangerous thing. economic powers one Act has ever conveyed. and hysterical to curb environmental pollu­ Broder's column contained some nice, Some critics view this power as being given tion; oil pro-rationing traceable back to the though obviously unintended irony. He stated to the President at the expense of Congress, New Deal; oil import quotas; Near East ten­ that during World War II "despite all the but the matter is not that simple, nor Con­ sions and war; labor policies in the coal horror stories today's politicians are telling, gressmen that simpleminded. The President, industry; disagreements with Canada stem­ it appears that rationing was darned effective. and the few people close to him who actually ming from increased nationalism there and Automobile mileage was cut in half in the follow his bidding, do not and cannot in protectionism here; fears of nuclear energy; first year the rationing plan was in opera­ fact administer these laws themselves. Such the American consumers' taste in automo­ tion. And despite a black market that in­ laws are administered by that veritable army biles and household temperatures; and finally volved widespread forgery of coupons and of bureaucrats over whom, as recent events the near disappearance of the sperm whale. some blatant hijacking .. the official esti­ make more clear than ever, the President has Among the myriad solutions proffered for mates were that 95 per cent of the avail­ little or no real control. . solving the problem, not too much has been able fuel supplies moved through legitimate Anyone who has observed Washington lob­ said yet about nationalization of the energy channels." I wonder how many of his readers bying practices closely realizes that key Con­ industries, though the thought has been noticed that in the absence of those same gressmen, especially the chairmen of impor­ bruited about. Most discussions have focused controls 100 per cent of our fuel supplies tant committees and subcommittees, exer­ on the imposition of further price controls would have moved through legitimate chan­ cise far more control over the working bu­ and consumer rationing, and to a lesser de­ nels. And incidentally, even that five per cent reaucracy than do the evanescent presiden­ gree on such ideas as government dictation of slippage amounted to a quarter of a million tial appointees far removed from the day to the output mix of petroleum refineries; barrels of gas and oil a day. It is also inter­ day work of the actual bureaucracy. Thus, I mandatory closing of gasoline stations on esting that Broder gives credence to "official find it perfectly understandable why Con­ Sundays; a federal speed limit; and appar­ estimates" of the amount of economic crime gress continues to adopt regulatory laws that ently someone's slipping into our bedrooms the government admitted to in the 1940's. I are allegedly to be administered by the ex­ at night, not to tuck us in but to lower our wonder how he treats the "official estimates" ecutive branch. The advent of the regulated electric blanket thermostats by six degrees; of crime surrounding Watergate and the 1972 economy has lodged tremendous administra­ and on and on and on. election. tive or executive authority in the hands of Finally, like a plaintive melody kept in the WHO GAINS? key Congressmen, and it would be surprising background by loucler and shriller orchestra­ It is interesting to conjecture about who if experienced politicians did not seize the tions, we occasionally hear a very different the possible beneficiaries of our newest crisis opportunity provided them by a full blown proposal, that the government forthwith discovery are, and I do not have reference energy crisis to secure more of this power. cease in every respect to interfere with the to horse breeders or manufacturers of The news media must surely bear a good functioning of the fuel market. Advocates of Franklin stoves. First, I suppose we might part of the responsibility for creating our this last view are, however, generally con­ note that an administration in serious polit­ present crisis atmosphere. That i<;, after all, sidered to be naive theorists who vastly over­ ical straits can claim h have a firm hand their stock in trade. Remember the Maine? simplify the problem; do not understand the on the government reins by dealing res­ But that presents me with a cheap shot, complexity of modern industrial America; olutely with a dramatic crisis. The tradi­ and anyway, who has not already heard that and still prescribe 19th century economic tional form of this argument was that gov­ story. There are more interesting groups to nostrums for 20th century problems. After ernments risked wars to take the public's consider. all, how could "doing nothing" ever cure a mind off domestic failures. Businessmen, yes, businessmen, must take crisis of the magnitude we presently face? a good share of the blame for the present But, as some embarrassed administration needless turmoil. Much of the public, cor­ Well, one answer to that question is that critics recently learned, governments are not rectly or not, looks to the business com­ the crisis everyone is talking about does not as likely today to play games about war munity for popular guidance on economic is­ really exist. That remark usually gains at­ risks as they may have been in the pre­ sues. And so, when President Nixon pro­ tention, not because it is readily recognized nuclear era. But a nice little energy crisis claimed price and wage controls on August as a simple truth, which it is, but because it can serve almost as well. It usually starts 15, 1971, in what may yet prove the most dis­ is generally considered to be a bad joke with a grave, short-notice., prime-time presi- astrous executive decree in American eco- 32254 EXTENSIONS OF REMARKS September 23, 19 74 nomic history, the publlc could surely not serves in increasing production. Penalizing tively well, while the ordinary decent citizen help noticing that the loudest approval for profits simply prevents this miraculous device will wind up with the dry gasoline or oil the move came from the business commu­ from performing its critical function ef­ tank." With all deference to Dr. McCracken's nity. And what could possibly have confused ficiently. In passing, it might be noted that perfectly correct prognosis of what will occur, the public more about the workings of un­ no one has proposed special tax relief for I must disagree with his characterization of regulated markets and the profit system than those industries, like automobiles, that are the effect on public morality. all that damnably misguided talk by busi­ suffering "windfall losses" at this time. It has often been pointed out that the nessmen recently about corporate social re­ DON'T SURRENDER Russian system of central economic planning sponsibility? Well, that chicken really came This brings me then to a conclusion that could never have reached its present produc­ home to roost in a hurry, for as Ralph Nader I rather think may offend some members of tion levels were it not for a broadly function­ and John Kenneth Gailbra.ith, among others. this audience or at least cause some painful ing and officially ignored black market. That tell us, support of rationing and price con­ soul-searching. I want to call on the busi­ misnamed free market has, of course, kept trols is a crucial part of a corporation's so­ many a Russian alive and happier than he cial responsibility. Perhaps in the future the ness community of the United States to an­ nounce publicly and vigorously, both as in­ would otherwise be. The same may now be­ business community will not be quite so dividual companies and through associations come true in America. quick to truck with that devil. such as this one, that they will not cooperate Businessmen should help the publlc under­ IDEAS HAVE CONSEQUENCES with the government beyond the legally com­ stand that morality, in the case of arrogant, At any given moment, there exist a set of pelled minimum in developing or complying intrusive, totalitarian laws, lies in the barest 'dely held intellectual views that largely with any control programs. possible obedience and in refusal to cooperate determine which remedies experts will offer Many industries, particularly in the petro­ wlllingly beyond the letter of the law. The to so ve real or imagined problems. In the leum industry, have already been asked to business community should have the courage "crisis" that was discovered in 1933, the then serve on government allocation committees. to inform the public that the stakes are very crorrent ideology generated the various al­ I urge them to keep the public's interest and high and that they are the potential victims. phabet agencies and intensive, if often mis­ their own clearly in mind. Do not join these guided, ant:itrust law enforcement. The race committees; do not give even the appear­ and environmental '"crises" of recent vintage ance of cooperation to those who would de­ brought the corporate social responsibility stroy the most successful economic system WBBM EDITORIAL APPROVES idea to the forefront. Now two different ever devised, and do not be misled by the PRESIDENTIAL PARDON pleas of current intellectual dogma propel belief that you can save a little of the pie by the h e and cry for controls. playing along with the government officials The first of these is the idea that there is or by manipulating their proposals. Remem­ HON. ROBERT McCLORY a serious maldistribution of wealth in Amer­ ber you have already been tried and con­ OF ILLINOIS lea. A little over a year ago that same notion victed before these proceedings even began. plaj'ed a role in the shift of control of the For every such short term benefit you can IN THE HOUSE OF REPRESENTATIVES DemocratiC Party from those with relatively measure in pennies, you and the public will Monday, September 23, 1974 moderate economic views to those with a ultimately experience losses measured in considerably more radical bent. The same dollars and 11 ves. Mr. McCLORY. Mr. Speaker, while it idea, no apparently even more widespread, The threats of controls and higher taxes, may appear to some that the media have is playing a large role in today's crisis. the vilifications by politicians and the media, adopted a uniform line of criticism II you ask fairly intelligent people why and the calls to patriotism and social re­ against President Ford's decision to par­ they ll.OW' favor price control and rationing of sponsibility are but the carrots and sticks of don the former President, it should be gasoline, a surprising number reply that political bullies who can ultimately ration­ these measures are necessary to prevent alize the last ounce of control over our pri­ noted that various responsible news me­ thy people from getting all of the gas, vate lives. dia have expressed approval of the Presi­ leaving the poor with none. Yet, there are If you have any faith in the economic and dent's decision. A most forthright editor­ few more pernicious economic suggestions social miracle that is the free market system, ial has been composed and broadcast by than that we should allocate commodities on use every legal means at your command to WBBM Radio in Chicago, the CBS news the basis of either some egalitarian right or vex, confuse, delay, undermine and avoid station serving the Nation from a Chi­ a proven "need" for the particular goods. every regulation adopted or proposed by cago base of operations. This argument contradicts the basic prem­ Congress, the administration, and the bu­ ise of a free soeiety that individuals com­ reaucracy. Instruct your lawyers and your ac­ I am pleased to attach hereto for the mand resources by using the rewards they countants to stay as narrowly within the let­ benefit of my colleagues this logical ex­ receive in the marketplace. ter of the law as they possibly can while still pression which supports the Presidential Advocates of this notion argue that gaso­ keeping you out of jail. You are not legally pardon: line has a special quality that distinguishes obliged to follow the spirit of a law and not PRESIDENTIAL PARDON the ethics of its distribution from that of morally obliged to follow the spirit of a law At a risk of a plunge in his own popular­ other cmmnodities. After all, they say, the that is without any redeeming economic or ity, President Ford has had the courage and poor must be able to get to their jobs. But social justification. the compassion to pardon Richard Nixon, how ahout housing, or clothing, or travel, or Force the government into litigation at and WBBM believes that in the long run medicine, or education, or, for that matter, every turn. Whenever possible, on constitu­ this decision will probably be a wise one. movies or soap? Should we destroy an in­ tional or other colorable grounds, seek in­ There is little doubt in the minds of most credibly e1licient market distribution system dividually or in a class action to enjoin the Americans about the guilt of the former that has served -well the rich and the poor enforcement of price controls and allocation President even without a formal admission alike in order to accomplish some miniscule regulations. Force the government to prove from him. The timing of the pardon would redistribution of wealth? And should we re­ the constitutionality of every one of these have been more acceptable to most people if qutre that even that small subsidy to the intrusions, and seek declaratory judgments Mr. NiXon had offered some utterance of con­ poor to be taken in the form of gasoline; as when there is the slightest possibility of con­ trition. would be the case with nontransf-erable ra­ fusion in the interpretation of regulations. Many who oppose President Ford's action tion coupons? How about the nond.rivers Finally publicize as widely as possible the do so on the grounds that it precludes equal among the poor, or those who must depend inevitable inefficiencies, mistakes, and human justice under law. But is it so important, at on deliveries? Nonetheless, to underestimate miseries that will develop with these controls. this critical time in our national life, to see the strength of this argument in America They are and will be all around us, and no the former President brought to his knees today 1s to fail to understand much of the one will have to look far for examples. That and his case brought to a final legal con­ popular appeal of rationing and price <:on­ price controls prevented production of the clusion? It would seem even those who wish trois as correct solutions to the energy cnsis. equipment necessary to produce more oil re­ to follow this course of action say in the The second ideological argument for price fining capacity is the kind of thing that the same breath that they don't wish to see the controls, or for a special high tax on petro­ publi<: should be made to understand. The former President go to jaiL Therefore, is it leum products, is that the large petroleum public should not be allowed to believe that worth the agonizing years to rehash the companies should not be allowed to make racketeering, black markets, favoritism, mis­ whole Watergate affair, possibly find the for­ "windfall" gains because of the fuel short­ allocations, delays and inconveniences are mer President guilty, then pardon him in age, though apparently the government sacrifices they must endure in the nation's the end anyway? Is it not better to pardon should. Even apart from popular misconceP­ interest. These are, after all, unnecessary him now and turn our national energies to tions about who actually would profit most costs resulting from economic stupidity or solving the problems that beset us? in this situation, tbis attitude utterly fails political knavery. The lesson of Watergate has been learn­ to understand the function of profits. Paul McCracken has characterized as one ed-not only by the former President, but First and foremost, profits serve as a cor­ of the "more unfortunate aspects of ration­ by the American people. It is more impor­ rect and efficient signal for the production o! ing ... its adverse effect on public morality. tant now to heal the wounds than to con­ more goods. The reason why the amount . . . Thus," he said recently in the Wall tinue to argue the fate of Richard Nixon . demanded at a specific price increases, or the Street Journal, "those with 'flexible' stand­ President Ford has closed the case. For reason the supply lessens, is completely ir­ ards of morality, or who have political pull, or better or worse, let's accept that decision and relevant to the economic function profit who can work some other angle, will do rela- move forward. September 23, 1974 EXTENSIONS OF REMARKS 32255 GEN. CREIGHTON WILLIAMS car. He was a candid, informal man dedi­ prior even to the influx of Vietnam-era vet­ ABRAMS, JR.-IN MEMORIAM cated to his family and his country and rans, Congress appropriated $1,722,000 for his entire life and career can only be design of a new hospital at Bay Pines. How­ characterized as exemplary. His death even, during the past 15 years, a portion of SPEECH OF these funds has been ut111zed for other ur­ marks a great loss to this Nation, and I gent projects at the Bay Pines Center. Con­ HON. RICHARD H. ICHORD share in the deep sadness which his death sequently, in 1972. the Congress again ex­ OF MISSOURI has brought to his family, his friends, pressed its support for a new hospital by ap­ IN THE HOUSE OF REPRESENTATIVES his colleagues, and his country. propriating $706,000 for preliminary design worlr. Wednesday, September 18, 1974 The Veterans Administration currently has Mr. ICHORD. Mr. Speaker, I wish to a replacement hospital programmed for fu­ ture construction as project #516-Q53. In join with my colleagues in paying trib­ BAY PINES VA CENTER March 1974, the House Committee on Vet­ ute to Gen. Creighton W. Abrams, whose erans Affairs estimated the cost for the pro­ tragic death on September 4 deprived this HON. C'. W. BILL YOUNG jected 720-bed Medical, Surgical, Neuro­ Nation of an outstanding general, a dedi­ psychiatry hospital as $54.8 million. cated public servant, a loyal citizen, and OF FLORIDA On May 31, 1974. I convened a hearing of a warm and sensitive human being. From I N THE HOUSE OF REPRESENT ATI VES interested parties at Bay Pines in order to his days as captain of the Agawan­ Monday, September 23, 1974 bring together those concerned with a re­ Massachusetts-High School football placement hospital and to compile the in­ Mr. YOUNG of Florida. Mr. Speaker, formation necessary as input for the decision team, editor of his school newspaper, and to go ahead with the preliminary design president of his graduating class c.f 1932, today I had the privilege of presenting to the President of the United States what work. The information contained in the ap­ through his service during three wars to pended summary, including the testimony his appointment as Army Chief of Staff I believe to be a very convincing case for presented at that hearing, fully documents in 1972, General Abrams• career was ded­ the construction of a replacement hos­ the need for a. replacement hospital and sug­ icated to excellence in all endeavors and pital for the present facility at the Bay gests several priorities to be observed in de­ a straightforward, commonsense ap­ Pines VA Center. veloping the replacement facility. I include a copy of my letter, which I Many points raised in communications to proach to life. Commissioned as a second me from Mr. Roy L. Ash, Director of the lieutenant on June 12, 1936, General handed personally to President Ford, and a copy of the swnmary of my pres­ Office af Management and Budget, and from Abrams went on to become a multidec­ Mr. John D. Chase, Chief Medical Director orated colonel during World War n, entation, also personally delivered to the for the Veterans Administration, were whose tank battalion became legendary President: answered in detail at the May 31st hearing. for their heroic exploits from Normandy WASHINGTON, D.C., September 19, 1974. [These communications are incoYporated ir:to Germany, anQ who Gen. George W. The PRESIDENT, into your copy of the bound testimony, along The White House, with other documentation derived from the Patton described as the "world cham­ Washington, D.C. hearing.} pion" tank commanC:er in the Army. In DEAR MR. PRESIDENT: This letter is to for­ Local governmental units have strongly 1953 he was assigned to Korea where he mally transmit a substantial compendium of supported the drive to secure construction served as chief of staff, successively, of evidence to document the urgent need for a of a replacement hospital. No less than 15 the I Corps, the X Corps, and the IX replacement veterans hospital at Bay Pines, cities, encompassing much of the veteran Corps. His sensitivity and personal lead­ Florida. population CYf the Bay Pines service area, have ership were again put to the test in 1962 The appended material represents many, formally approved resolutions in support and 1963 when President Kennedy gave many hours of work by dedicated persons in of a new veterans fac111ty at Bay Pines. These him the Bay Pines service area. It speaks for the cities include St. Petersburg, Clearwater, St. command of the Federal troops thousands of veterans served by Bay Pines, Petersburg Beach, Pinellas Park. Seminole, poised to meet racial unrest over the ad­ and on behalf of the :tine staff at Bay Pines. Treasure Island, Gulfport, Indian Shores, mission of James Meredith to the Uni­ The documentation of need includes not Safety Harbor, Indian Rooks Beach, and versity of Mississippi and the eruption of only my own personal statement, but testi­ North Redington Beach. In addition, the racial violence at Tuscaloosa and Bir­ mony presented at a public hearing, resolu­ Pinellas County Department of Social Serv­ mingham, Ala. Then in 1968 General tions of support from local government, and ices has gone on record in support of a new Abrams replaced Gen. William C. West­ communications on this subject which I have hospital. Copies of these resolutions are at­ moreland as commanding general of received from the Executfve Branch. tached. U.S. forces in Vietnam and led the dis­ I believe these materials clearly delineate BACKGROUND mantling of U.S. military involvement in the urgent need for a new hospital at Bay Veterans have been moving into Florida Pines, and just as clearly show that the deci­ at a phenomenal rate oyer the past few Vietnam through the delicate Vietnam­ sion must be made now, in order to avoid ization process. In the middle of North years-5,000 per month, or 60,000 per year. grave future consequences. I hope that your Active veterans claims have been increasing Vietnamese offensives and growing op­ own examination of this evidence will con­ at the alarming rate of 6,235 per month over position to the war at home, Vietnam firm my judgement and that you will lend the last four months. In the Bay Pines serv­ tested both General Abrams• military your immediate support to release of the ice area alone, that rate o1 increase approxi­ genius and his political astuteness. On already appropriated funds for preliminary mates 11,313 additional claims each year. both counts he emerged from Vietnam architectural and engineering design of the At the beginning C1l World War II, Florida new facility. had a veteran population oi only 43,000; to­ amidst praise from all corners, having With best wishes. and personal regards, I achieved his assignment to disengage am day, it encompasses 1,200,000, of which only U.S. forces with the minimum of casual­ 200,000 are Vietnam-era veterans. An addi­ Sincerely yours. tional estimated one and one-half to t wo ties with delicacy, dis:inction, and hoi.lor. C. W. BILL YOUNG, million tourist veterans may also ce in the He returned home to be confirmed as Member oj Ccmgress. state on any given day. Army Chief of Staff in 1972 and until his Almost 174,000 veterans live in the 11 coun­ death this month he brilliantly led the BAY PINES VA CENTER ties serviced by the Bay Pines VA center, and restructuring of a viable peacetime army. INTRODUCTION of that number. 89,000 live in Pinellas Coun­ Mr. Speaker, this Nation has much for Both Congress and the Veterans Adminis­ ty alone. Bay Pines. therefore. services more which to be grateful to General Abrams. tration have long recognized the need for a than 15 percent of Florida's resident veterans. He served this Nation to his fullest and replacement hospital at Bay Pines. The pres­ Lending special urgency to the need for a yet accomplished all his distinctions in a ent hospital facility was built to care for replacement hospital at Bay Pines is the World War I veterans: opened on January 13, fact that approximately 44 percent of the quiet, self-effacing ma~mer, avoiciing the 1933, it is the second oldest veterans hospi­ veterans in the Bay Pines service area are opportunities for public recognition tal in the State of Florida. aged 45 and older-undeniable evidence that which normally fall to a man of such While there are now approximately one World War II era veterans will, because of outstanding achievement~. He was known million World War I veterans still living in approaching old age, experience more nu­ as a lover of fine music and was a credi­ the United States. they have been joined by merous and more serious medical problems ble pianist in his own right. He was an nearly 17 million World War II veterans and in the near future. This speaking CYf health enthusiastic amateur cook, an avid out­ 11 million veterans of the Korean and Viet­ problems may be compared to the World War dOw the mechanism is available, the State of Ohio has recently recom­ and develop better ways and more effi­ we'll hear more from people." mended that the State lower its air pol­ cient methods of electric power genera­ She believes the program is "a move in lution standards to conform to the less tion and electrical energy conservation. the right direction. It provides the mecha­ stringent Federal standards. If this were Also, Senator LEE METCALF has intro­ nism for those who have a beef and it wlll done, it would free the electric companies duced a bill, S. 1025, which would estab­ lead to more and more public accountability in Ohio from the necessity of raising lish a National Power Grid Corporation of agencies. hundreds of millions of dollars for in­ under which power could be transferred But she and others pioneering the project stalling air pollution control equipment to different areas of the country to han­ point out the benefits aren't all one-sided; that everyone will benefit. in the immediate future, ana. undoubt­ dle peak loads which occur at different For the agencies, they will gain protection edly place them in a much better posi­ times of the day or seasons of the year. from unfounded criticism. tion to raise the necessary capital for Senator METCALF estimates that such a When undesirable practices and proce­ other purposes. system would eliminate the necessity of dures are identified and corrected, everyone I do not intend to suggest any aban­ 25 percent of the construction of new is sure to gain. donment or even significant curtailment power facilities now planned by public (Incidentally, the Child and Family Serv­ of our national commitment to restore utilities which would represent a consid­ ice was used as a hypothetical case and that clean, healthy air to all the people of erable savings in costs to consumers. The in no way reflects on the agency's -services.) our Nation. That must remain a top pri­ Senate Commerce Committee is planning ority. Nor do I suggest moving new to hold hearings early next year on the OHIO RESIDENTS ANGERED OVER sources of pollution into the few areas efficiency of public utilities and on how ELECTRIC INCREASE remaining in the country which have much growth in electrictiy production been fortunate enough to maintain a capacity is required to meet our coun­ HON. JOHN F. SEIBERUNG clean, pure environment. try's needs. Air Although some electricity cost in­ 0:1' OHIO But since the passage of the Clean Act, the oil crisis has resulted in funda­ creases in the next few years appear in­ IN THE HOUSE OF REPRESENTATIVES mental changes in available fuel sources. evitable, action can be taken now by Monday, September 23., 1974 And despite substantial progress in de­ public utilities and Federal, State, and Mr. SEIBERLING. Mr. Speaker, I velopment of technology required to local governments to reduce the impact have recently received over 50 letters, achieve the goals of the Clean Air Act, of these increased costs to consumers and SeptembeJ" 23, 1974 EXTENSIONS OF ·REMARKS 1 32261 make them more equitable by restruc­ September 11, FPC Chairman Nassikas which it had support from all Chilean parties turing the rate system. Because in the and other top administration officials in expropriating. Moreover, economic disas­ past our economy has operated under a urged State regulatory utility commis­ ter was overtaking President Allende in any case. By becoming involved directly with concept of unlimited growth and expan­ sioners to speed up their rate making the elements that brought him down, the sion, electric utilities have encouraged processes so that utilities in financial dif­ United States unnecessarily made itself ac­ the use of electricity by offering lower ficulty or in need of capital to expand cessory to a bloody coup and a particularly rates in proportion to higher consump­ could obtain rate increases more prompt­ cruel repression thereafter. tion, and industrial and commercial users ly. They are urged the States to consider The argument offered by Secretary of State have generally benefited from lower rates allowing utilities to automatically pass Kissinger for the operations in Chile must than residential users. through certain costs in addition to fuel set some kind of record in cynical contempt for his listeners' intelligence. It is that the The one positive result of the Arab oil adjustment charges. I recognize as I C.I.A. was only defending freedom by giv­ embargo and the energy crisis of last pointed out earlier, that utilities are in a ing money to the opposition press and winter was that it made us realize that financial bind, but as I also pointed out, parties. the Earth's natural resources such as oil automatic adjustment charges may not There is no evidence that Mr. Kissinger has and coal are limited and are rapidly be­ be the best answer to this problem. ever shed a tear for freedom of the press-­ ing exhausted. The people are now aware Mr. Speaker, the combined effects of or done anything about the brutal repression of the need to reevaluate and redirect the energy crisis, the necessity of clean­ of freedoms by a dozen right-wing tyran­ ing up our dangerously dirty air and the nies. The image Mr. Kissinger has given this the use of these resources and develop country is that of a friend to the Greek col­ alternatives so that we can meet the general inflation afflicting the economy of onels. Now he is advising President Ford to present and long-range energy and en­ the United States make an increase in visit South Korea, where the feeblest criti­ vironmental needs of the world's people. the costs of electricity to all consumers cism of government may bring a death sen­ Lower electricity costs and energy con­ inevitable. But certainly we in Congress tence. servation can be achieved by making have an obligation to do all in our power Chile itself is a complete answer to the electricity rates reflect the actual cost to see that only justifiable increases are notion that our interest in intervening was made and that the burden is equitably liberty. The military regime that rules it now to users. The cost of electricity should is one of the most repulsive governments in increase rather than decrease with great­ distributed among all consumers. the world. A recent report by the Interna­ er consumption. By charging lower rates tional Commission of Jurists, confirming for off-peak load hours, the necessity and other studies, said that torture was in sub­ cost of power facility expansion can be stantial use, including "electric shock, burn­ reduced and consumers can save by using THE IMMORALITY OF COVERT ing with acid or cigarettes, extraction of cheaper electricity at certain times of OPERATIONS BY THE CIA nails, crushing of testicles, sexual assaults, hanging . ..." That is the regime that the the day. U.S. rushed to support, after the coup, by The most feasible and practical solu­ HON. ROBERT F. DRINAN resuming various forms of aid. tion to the critical impact of increased The argument that we were only protecting electricity costs for the poor is a rate OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES the opposition press and parties in Chile is system called "lifeline" now being con­ also unpersuasive because it is untrue. As sidered in some States. "Lifeline" would Monday, September 23, 1974 Seymour Hersh of The New York Times has provide a basic minimum amount of elec­ Mr. DRINAN. Mr. Speaker, on Septem­ brought out, most of the millions spent by tricity to everyone at a fair and rea­ the C.I.A. in 1972 and 1973 went for support ber 17, following President Ford's admis­ of striking truckers, shopkeepers and others sonable cost so that people living on low sion that the CIA had been engaged in whose activities played a significant part in and fixed incomes would not have to do covert operations directed against the bringing Mr. Allende down. without essentials such as heat, light, or Allende regime in Chile, I addressed the Official lies are a problem of covert activity the use of appliances for food prepara­ House on this vital matter. As I observed in general. They inevitably become necessary. tion. during my remarks, such covert activities And then, again and again in this count ry, While the use of the fuel adjustment exceed the original charter of the CIA they are exposed, adding to the weight of clause is presently widespread through­ anJ are conducted with neither the public disbelief that has increasingly bur­ out the United States, it may be that dened American policy-makers. knowledge nor consent of Congress and Concern about the credibility of U.S. for­ allowing utilities to pass their increased the American people. eign policy is one strong reason for giving up costs on to customers reduces the indus­ An excellent essay on this subject by the practice of covert C.I.A. operations. This try's incentive to find cheaper sources of the distinguished journalist, Anthony case was made definitively just a year ago, in fuel and to make their electricity produc­ Lewis, appears in today's New York the magazine Foreign Affairs, by Nicholas tion more energy and cost efficient. It Times. Mr. Lewis points out the hypoc­ deB. Katzenbach, former Undersecretary of would seem appropriate to consider a risy of American efforts to undermine State and Attorney General. policy that such increases would be ap_ "Our foreign policy must be based on policy foreign governments while professing and factual premises which are accepted by proved only upon a showing that the the principle of self-determination. He company is taking adequate steps to de­ the overwhelming majority of the American also discusses the tragic irony of our people," Mr. Katzenbach wrote. As one step velop new methods to improve efficiency. covert assistance to repressive dictator­ toward re-establishing credibility, he said, Congressman MICHAEL HARRINGTON has ships in Chile and elsewhere in the name "we should abandon publicly all covert oper­ introduced legislation, H.R. 13498, which of "defending freedom." I commend Mr. ations designed to influence political results would allow utilities to pass through only Lewis' forceful essay to all of my col­ in foreign countries. . . . We should confine 50 percent of fuel price increases to leagues. our covert activities overseas to the gather­ users. This bill is before the House Inter­ ing of intelligence information." state and Foreign Commerce Committee. The article follows: Mr. Katzenbach was making not a moral I urge the .committee to schedule hear­ SELF-INFLICTED WOUNDS but a pragmatic argument--that American ings on this and other proposals to im­ (By Anthony Lewis) covert operations were harming us more than The d isclosures of covert C.I.A. operations othe1·s. Even the current C.I.A. director, Wil­ prove the utility rate structure in the liam E. Colby, recently took a very limited near future. in Chile raise questions on two distinct levels: Was the particular activity against view of their utility, saying that it was At this time, 90 percent of the Nation's the Allende Government justified? In gene­ "legitimate" to consider abandoning them utilities and their rate structures are ral, is it wise for the United States to inter­ and that there would be no great impact on under the jurisdiction of the States, ex­ vene surreptitiously in the internal politics our security. · cept where electricity is sold in bulk of other countries? But there are questions of values, too. across State lines or to municipalities, Covert action by the C.I .A. has caused so Does the United States want to procla im such as Cuyahoga Falls, for resale, in much embarrassment to this country in re­ to the world that covert political interven­ cent years that only a serious threat to U.S. tion abroad is a regular part of our national which cases the authority lies with the philosophy? President Ford came close to F,ederal Power Commission. The Federal national security could begin to justify it. In those terms, putting aside all concern doing so the other day when he said that Power Act gives the Commission the au­ about American values and international everyone does it--only the Cominunists spend thority to require that all power rates be more than we do. Are we really no different ? "reasonable, nondiscriminatory, and just proprieties, the intervention in Chile was We may not always live up to what we say, plainly a mistake. but do we want to set our standards so to the customer,'' but the FPC has done Tlle Allende Governm.ent, whatever its low? little to protect customers from sky­ faults, did not threaten anything of ours ex­ Those like Mr. Kissinger who say that rocketing utility rates. At a meeting on cept the property of American businesses- morality m ust give way to effectiveness in 32262 EXTENSIONS OF REMARKS September 23, 19 7 4 these matters really favor covert operations, ( 1) governmental plans; ties, and any regulations prescribed by one and secrecy in general, because they are more (2) certain church plans; department are to be binding on the other. convenient. It is easier to have a confidential (3) non-U.S. plans primarily for aliens; DISCLOSURE TO PARTICIPANTS chat with Bill Fulbright or John Stennis (4) workmen's compensation and unem­ than to justify a policy in public. But in the ployment compensation plans. The administrator of a pension or welfarle long run it is more dangerous. The habit of ( 5) unfunded plans which provide bene­ plan is responsible for providing to partial­ dirty tricks abroad can slip into cot·rupting fits in excess of the Internal Revenue Code pants and beneficiaries: illegality at home. That, at least, we should limitations on contributions and benefits. ( 1) a "summary plan description" (writ­ have learned from Watergate. Excluded from all but the reporting and ten in a manner calculated to be understood disclosure requirements are: by the average plan participant) within 120 (6) unfunded plans maintained by the days after the effective date (or 90 days after PENSION REFORM employer primarily to provide deferred an individual becomes a participant); and compe.nsation for select management or (2) an undated summary plan description highly compensated employees. every 5th year, unless there have been no HON. G. WILLIAM \VHITEHURST Excluded from the participation, vesting, amendments, in which case every tenth funding and plan termination insurance re­ year; and OF VmGINIA ( 3) a summary description of any material IN THE HOUSE OF REPRESENTATIVES quirements are: (7) plans established by labor organiza­ modification of the plan within 210 days Monday, September 23, 1974 tions (under Sec. 501 (c) (5) of the Internal after the end of such plan year; and Revenue Code) which do not provide for (4) a copy of the statement of assets, lia­ Mr. WHITEHURST. Mr. Speaker, the employer contributions, and bilities, receipts, disbursements and other Employee Retirement Income Security (8) plans established by fraternal or other material necessary to fairly summarize the Act of 1974 provides for new rights on a organizations (under Sec. 501(c) (8), (9); "annual report" within 210 days after the broad scale to employees and their bene­ (18)) which do not provide for employer end of each plan year; and ficiaries who are members of pension and contributions. ( 5) upon written request and wi+.hin 30 welfare plans. New rights bring new Specifically excluded from the funding days, a copy of the plan description, annual responsibilities and obligations. Plan standards are: report, bargaining agreement, trust instru­ sponsors, administrators, trustees, fidu­ (9) profit-sharing, stock bon-.ls, and other ment, or other plan documents for which a individual account plans (except for money reasonable charge may be made; and ciaries, lawYers, accountants, actuaries, purchase plans) , and (6) the information in (5) in the principal and other :plar.. advisers will soon be tak­ (10) certain qualified level premium in­ office of the administrator and certain other ing action based on the new law. It re­ dividual insurance contract plans, and places; and peals the Welfare and Pension Disclosure ( 11) plans that have not after the date (7) upon written request (but not more Act and creates opportunities and of enactment provided for employer contri­ than once every year) and within 30 days, a changes which should be brought to the butions. statement of total pension benefits accrued attention of employee and employer. A Also excluded from coverage under plan and the time and amount of vesting; and handy reference for better understanding termination insurance are: (8) a statement as to a terminated vested (12) individual account plans (e.g.: prof­ participant's benefits and rights within a of the act has been compiled by my col­ it-sharing stock bonus, and money purchase prescribed period after the end of the plan league JOHN N. ERLENBORN, Republican of pension plans) , and year in which such participant terminated. Illinois, who helped write the law. I in­ (13) plans that have not after the date REPORTING sert this guide to the Employee Retire­ of enactment provided for employer con­ The administrator of a pension or welfare ment Income Security Act of 1974 at this tributions, and plan is to file with the Secretary of Labor: point in the RECORD: (14) plans established by professional serv­ ( 1) an annual report within 21C days after PENSION REFORM ice employers and which have fewer than 26 the end of the plan year which is to contain active participants, and HIGHLIGHTS an audited financial statement, a certified ( 15) plans established exclusively for "sub­ actuarial report and other scheduled finan­ The new law establishes: stantial owners". Procedures for qualifying and registering cial iteins on forms the Secretary may require plans with the Departments of Treasury and AlJMINISTRATION AND PROCEDURE (E.G., a balance sheet and income statement, Labor. Jurisdiction regarding registration of plans party-in-interest transactions, transactions Stringent standards for plan fiduciaries, in­ (other than welfare plans) is generally exceeding 3% of the plan's assets, loans and cluding a broad definition of fiduciary and shared by the Internal Revenue Service leases in default, etc.); and detalled prohibited transactions. (through the new Office of Employee Plans ·(2) a plan description within 120 days Reporting requirements regarding condi­ and Exempt Organizations) with the De­ after the later of the plan's adoption or the tions and operations of all employee bene­ partment of Labor. effective date of the Act, and an updated fit funds (pension, welfare, etc.) to both the The plan which seeks qualification for tax summary at least every 5 years; and Departments of Treasury and Labor. benefit purposes first files with the IRS in­ (3) a summary plan description at the time Requirements regarding disclosure to plan formation regarding the funding, vesting and furnished to participants; and participants of plan contents, participants' participation standards of the plan and noti­ ( 4) a description of modifications and rights and procedures. fies the plan participants of such action. changes in the plan within 60 days after such Minimum participation {eligibllity), vest­ In the period prior to qualification, upon change. ing, and funding standards. petition by a group of participants, the Sec­ The administrator of a plan other than A system of insurance of nonforfeitable retary of Labor may intervene with the IRS a welfare plan is to file with the Secretary (vested) benefits, and contingent employer in behalf of the participants regarding the of Treasury: liability to the insurance corporation in event vesting, funding or participation provisions (1) an annual registration statement with­ of plan termination. of the proposed plan. In addition, the em­ in a time prescribed by the Secretary and A role for the Department of Labor, the ployer, the employees, the Labor Secretary, is to contain information on the names and new pension insurance corporation, and par­ or the Pension Benefit Guaranty Corporation Social Security numbers o:! terminated par­ ticipants in the qualifying and registration may petition the U.S. Tax Court to obtain a ticipants with deferred vested benefits; and procedures. declaratory judgment in regard to a plan (2) a notice of a change in status of a Regulatory authority in the Departments qualification. plan (e.g.: merger, termination, change in of Treasury and Labor with obligation to co­ If the IRS finds a plan qualified, it is to names etc.) , and ordinate regulations and reporting. certify this fact to the Department of Labor, (3) an annual return containing such fi­ Coverage of all employee benefit plans which must accept this certification as con­ nancial and other information as the Secre­ which seek tax qualification or which are sub­ clllSive evidence of initial compliance with tary may prescribe and to be filed within ject to jurisdiction under the Commerce participation vesting, and funding standards. a period prescribed by the Secretary, and Clause. When a plan does not seek IRS qualifica­ { 4) an actuarial statement of valuation be­ Means by which individuals not covered tion for tax purposes, the Secretary of Labor fore 30 days prior to a merger, consolidation, by a retirement plan may set up their own can through the Federal courts require com­ or transfer of a plan's ·assets or liabilities; and plans and obtain preferential tax treatment. pliance with the participation, vesting and { 5) an actuarial report containing a state­ New limits on deductibility of contribution funding standards of the b111. ment of valuation, an actuarial opinion, and to retirement plans. Plans which are qualified under the tax such other information as the Secretary may Excise penalties and equitable remedies law are to be .audited by the I.R.S. Generally, prescribe to be filed in a time and manner as additional methods to enforce prohibited the Department of Labor Js to limit its in­ prescribed by him (at least once every 3 transaction rules and the minimum eligibil­ volvement to matters dealing with individual years). ity, vesting and funding requirements of the benefits. The administrator of a plan covered under labor and revenue codes. The Act gives authority to the Secretary of plan termination insurance is to file with the Effective dates related to the specific titles the Treasury to write regulations on partici­ Pension Benefit Guaranty Corporation an and provisions of the Act. pation, vesting, and funding except that the annual report which includes a statement COVERAGE Secretary of Labor is directed to prescribe disclosing the occurrence of any "reportable Excluded from the plenary coverage of regulations in a few select areas. The two event". the Act are: departments are to coordinate their activi- The Secretaries of Labor and Treasury and September 23, 1974 EXTENSIONS OF REMARKS 32263 the Corporation are directed to coordinate gate their responsibilities; however, a fidu­ FUNDING the timing and content of the various re­ ciary remains liable for the illegal acts of a All covered pension plans must make an­ ports required to be filed with each agency. co-fiduciary if he knowingly participates in nual minimum contributions equal to nor­ Reports involving fewer than 100 partici­ or conceals such illegal acts. mal cost plus 30 years (of single employer pants would be simplified. Plans are protected against loss by reason plans) or 40 year (.for multi-employer plans) FIDUCIARY RESPONSIBILITY AND TRUST of frau! or dishonesty by requiring, fiduci­ amortization of unfunded accrued liabil­ REQUIREMENT aries who handle funds to be bonded. ities for all plan benefits. Plans may amortize All assets of an employee benefit plan are PARTICIPATION liabilities existing on the effective date over t o be held in trust by one or more trustees An employee benefit plan (other than wel­ 40 years. Experience gains and losses are to subject to certain exceptions (e.g., insurance fare plans) is not to require as a condition be amortized over no more than 15 years contracts). The Secretary of Labor may ex­ of participation an age greater than 25 or a for single employer plans and 20 years for empt welfare plans from this requirement. period of service longer than 1 year (3 years multi-employer plans. An alcernative method In addition every plan must be maintained for plans which provide for immediate 100% for meeting the minimum funding standard pursuant to a written instrument which pro­ vesting) whichever is the later. Certain pen­ is provided for certain plans using acceler­ vides for one or more "named Fiduciaries" sion plans may exclude from participation ated funding methods which lead to a high who jointly and severally have authority to employees who are within 5 years of normal degree of benefit security for participants. control and manage the operation of the retirement age. A "year of service" is de­ 1\n enrolled actuary is to be retained by plan. fined as a 12-month period during which the plan administrator on behalf of the par­ An individual is subject to the fiduciary the employee has not less than 1,000 hours ticipants to evaluate the plan's funding status (at least every 3 years) and to offer his rules if the individual is a trustee, a "named of employment. opinion as to whether the required figures fiduciary" a person to whom a "named fidu­ VESTING-NONFORFEITABLE BENEFIT S represent his best estimate of anticipated ex­ ciary" delegates duties or if the individual- Every employee benefit plan (other than perience under the plan. Exercises any discretionary authority or a welfare plan) is to meet one of three min­ control respecting management or disposition The amortization period may be extended imum vesting rules. by the Secretary of Labor if certain condi­ of a plan's assets, or 1. Ten Year Service Rule-100% vesting tions are met. The IRS may also grant a waiv­ Renders investment advice for a fee or after 10 years of service. other compensation, direct or indirect, with er, of the funding requirements on a year by 2. Graded 15-year Service Rule-25% vest­ year basis (up to 5 waivers in a 15 year peri­ respect to any moneys or other property of ing after 5 years of service; then 5 % ad­ such plan, or od) if certain hardship conditions can be ditional vesting for each year of service from demonstrated. A failure to meet the mini­ Has any discretionary authority or discre­ year 6 through 10, then 10% additional vest­ tionary responsibility in the administration mum funding requirements may result in an ing for each year of service from year 11 excise tax being levied on the employer. of such plan. through year 15, so that an employee is 100% Fiduciaries are required to discharge their vested after 15 years of service. TERMINATION INSURANCE duties with respect to the fund solely in the 3. Rule of 45-50% vesting after 5 years There is established within the Depart­ interest of the participants and their bene­ service or, if later, when age plus service ment of Labor a Pension Benefit Guaranty ficiaries and with the care, skill, prudence equals 45, such percentage increasing by 10% Corporation, to consist of the Secretaries of and diligence under the circumstances then each year unti1100% is reached; additionally Labor (Chairman), Treasury, and Commerce. prev:ailing that a prudent man acting in a a participant under the Rule of 45 must be The Corporation is to guarantee the pay­ like capacity and familiar with such matters 50% vested after 10 years of covered service, ment of vested benefits (up to $7-50 a month) would use in tlle conduct of an enterprise of such percentage increasing by 10% for each to participants of plans which ter.minate. a like character and with like aims. additional year of covered service, so that A 7-member Advisory Committee, ap­ A fiduciary is speciflcally required to di­ an employee is 50 % vested after 10 years pointed by the President, is est ablished. versify the investments (except in the case and 100 % vested after 15 years regardless of Annual premiums for the first 2 years .are of employer securities purchased by profit­ his age. to be $1 per plan participant for single em­ sharing, stock bonus, or thrift and savings A plan is permitted to change its vesting ployer plans and 50¢ per plan participant for plans) so as to minimize the risk of large rule at any time if a provision is made that multi-employer plans. Plans may elect a sec­ losses unless under the circumstances it is accrued vested benefits not be reduced for ond annual premium based on a percentage prudent not to do so. participants at the time of change. In addi­ of unfunded insured benefits and total in­ A fiduciary (and a "disqualified person" tion, any participant with at least 5 years of sured benefits, but such premium may not be under the Internal Revenue Code) is specifi­ service may elect to remain under the pre­ less than 50¢ per participant for single and cally prohibited from letting the following amendment vesting schedule with respect 25¢ per participant for multi-employer plans. transactions occur in regard to a plan: to past ~nd future benefit accruals. Later, the Corporation may revise the pre­ Dealing witll the plan's assets for his own A year of service for vesting purposes is mium rates and create new rates based on account. defined as at least 1,000 hours of employ­ (1) number of participants, or (2) unfunded Acting in any plan transaction on behalf ment in a 12 month period. A participant is insured benefits, or (3) total insured bene­ of a party adverse to the interests of the to accrue benefits for each year of participa­ fits. Such revisions must be approved by plan or participant. tion (after the first year) in which at least Congress. .Receiving personal consideration from any 1,000 hours have been worked. A plan is The employer remains liable up to 30% party dealing with the plan in connection required to meet one of three benefit ac­ of net worth for any unfunded insured vested with a plan transaction. crual rules except that benefits for past serv­ benefits of a terminated plan. The Corpora­ Transferring property to any party­ ice must be at least one-half of the mini­ tion is to establish contingent liability in­ interest. mum. surance covering this employer liability. Permitting the acquisition of property Once accrued benefits become vested, they Conditions of coverage are to be defined by from any party-in-interest. cannot be reduced or forfeited on account the Corporation and include payment of Extending or receiving credit from a party­ of "bad boy" clauses or other conditions the contingent liability premium for five in-interest. (with limited exceptions). A plan must pro­ years. Coverage may be elected from the d ate Furnishing of goods, services, or facilities vide for a "buy-back" permitting recapture of enactment with premiums set and col­ by a party-in-interest. of forfeited vested benefits (where vesting is lected on a retroactive basis. The Corpora­ Acquisition of employer securities exceed­ less than 50%) if the plan provides for such tion is to explore the possibility of providing ing the new limitations (generally 10 % of forfeiture when the participant withdraws contingent liability insurance through the the assets of the plan). his own mandatory contributions. insurance and banking industries. A fiduciary may, however, engage in cer­ Present rules regarding plans which co­ Employer liability is to be payable ov..er a tain otherwise prohibited transactions; he ordinate with SOcial Security_ benefits are period of time .specified by the Corporation. may, e.g., receive benefits from the plan so changed. The benefits of a terminated par­ A lien with the same eifect as a tax lien is long as the benefits are consistent with the ticipant are to be calculated without taking imposed at such time as the employer ne­ terms of the plan, permit loans to partici­ into account increases in Social Security glects or refuses to make payments on pants if they generally benefit the plan, benefits after the date he terminates. demand. receive reasonable compensation for services Another study (to be completed within 2 In the case of a voluntary termination, rendered, etc. The list of exceptions to other­ years) which could impact on vesting re­ th ·~ "date of termination" agreed to by the wise prohibited transactions can be ex­ quires the Department of Labor to deter­ employer and the Corporation is the date on panded by agreement of the Secretaries of mine the feasibility of issuing regulations to which the plan's benefits and assets are val­ Labor and Treasury when to do so would insure that employees under Federal procure­ ued, the employer's liabtlity is established (1) be administratively feasible, (2) be in ment and other contracts be protected (but with the net worth of the employer de­ the interest of the plan, and (3) protect the termined up to 120 days before such date) , rights of participants and !beneficiaries. against forfeiture of pension rights. The Act requires that a plan pay all bene­ and the lien is imposed. The benefits guar­ A fiduciary is personally liable to the plan anteed on such date are the vested benefits for any breach of fiduciary duty while a dis­ iits (including deferred vested benefits) in under the plan up to the lesser of $9,000 per qualified person (who is generally a party­ a joint and survivor form at age 65 or, 1f year or 100 % of the high 5-year compensa­ in-interest) is subject to an excise tax pen­ earlier, the normal retirement age under tion. alty. the plan. A pre-retirement survivor option Benefit increases within 5 years of a plan Trustees may allocate their responsibilities is also to be available to participants attain­ termination are insured 20% for each year and other fiduciaries may allocate or dele- ing early retirement age. · they were in effect prior to termination. 32264 EXTENSIONS OF REMARKS September 23, 1974 The Corporation must also provide assist­ prohibited transaction rules may result in civilian personnel report of the Joint ance to individuals with respect to evalu­ the imposition of excise tax penalties. A plan Committee on Reduction of Federal ating the desirab11ity of using various "port­ may also be disqualified if it does not meet Expenditures, together with a summary ability provisions" (e.g. individual retire­ certain other requirements of the Internal ment accounts) under the Act. Revenue Code. of fiscal year 1974 payroll costs and av­ INDIVIDUAL RETIREMENT ACCOUNTS In addition to the above, the Secretary of erage employment: An employee whose employer doesn't have Labor or any participant or beneficiary may SUMMARY OF PAYROLL COSTS AND AVERAGE any qualified pension, profit-sharing, or sim­ bring a civil action to enjoin any act which FEDERAL CIVILIAN EMPLOYMENT-FISCAL ilar plan is entitled to set up his own plan. violates any provision of Title I and to re­ YEAR 1974 Contributions up to the lesser of 15% of cover denied benefits. Dollar assessments and This summary of annual payroll costs and compensation of $1,500 may be contributed the removal of fiduciaries are but two ex­ average employment for fiscal year 1974, to an individual retirement account, annu­ amples of the types of penalties that may re­ following practice of many years standing, ity, or bond program and may be excluded sult from such civil actions. is submitted along with the Joint Commit­ from the employee's gross taxable income. EFFECTIVE DATES tee's regular monthly report for July 1974 Earnings on these accounts are to be tax free. Participation and Vesting: which carries payroll figures for June, the Distributions from such accounts because of New plans, plan year beginning after en­ last month of fiscal year 1974. Figures are retirement after age 59¥2 or disability at actment. from reports certified by the agencies as com­ any age are to be taxed as ordinary income. Existing plans, plan year beginning after piled and published monthly by the Joint A 10% excise tax is levied on premature dis­ 12/31/75. tributions. Accrual of certain supplementary benefits Committee on Reduction of Federal Expend­ The employee and the trustee (who must may be deferred until expiration of contract itures. be a bank or other qualified person) must but not later than 12/ 31/80. Annual payroll costs for all three branches guard against the fund engaging in certain Funding: of the Federal Government for fiscal year prohibited transactions. These plans may not New plans, plan year beginning after en­ 1974, in comparison with :fiscal year 1973, purchase life insurance, but certain endow­ actment. follow: ment type contracts to the extent of their Existing plans, plan year beginning after non-life insurance elements are permissible 12/31/75. (In millions of dollars) investments. Collectively bargained plans, at expiration CONTRIBUTIONS FOR THE SELF-EMPLOYED of contract but not later than 12/31/80. Fiscal year- The present contribution limit to self­ Reporting and Disclosures: 1/1/75, but employed (H.R. 10) plans is increased from Labor Secretary to issue regulations immed­ 1973 1974 Change $2,500 to $7,500 (or 15 % of earned income iately. if less). Fiduciary Standards: 1/1/75. Executive branch ______32,730 35, 073 +2, 343 Termination Insurance: Legislative branch ______448 497 +48 LIMITATIONS ON BENEFITS AND CONTRIBUTIONS Single employer plans- Judicial branch ______121 132 +11 Pension, profit-sharing, 403(b) annuity, Benefits to be paid fo:;: plans terminated TotaL ______33, 299 35,701 self-employed, and all other tax qualified after 6/30/74. +2, 402 plans are now subject to certain overall Employer liability and other provisions, on benefit and contribution restrictions. Gen­ enactment. erally, a pension plan may not provide bene­ Multi-employer plans 1/1/78, but Secretary Civilian payroll costs totaled $35.7 billion fits greater than $75,000 per annum. Con­ may use discretionary authority to pay bene­ in fiscal year 1974-an all time high. This tributions on behalf of an individual to a fits before then. compared with $33.3 billion in pay costs last profit-sharing or other defined contribution Pre-emption of State Laws: 1/1/75. year and $24.5 billion 5 years ago in 1969. plan is limited to the lesser of $25,000 or Individual Retirement Accqunts: 1/1/75. 25 % of compensation. All plans of the em­ Fede.ral civllian employment in June 1974 Limitations on Benefits and contributions: totaled 2,893,825, an increase of 69,268 from ployer are combined for the purpose of test­ Plan years beginning 1/1/76. ing the limitations. A lower limit equivalent June a year ago, and a decrease of 182,822 to 140% of the limit under one plan is ap­ over the 5 years since June 1969. plicable when an individual is a member of FEDERAL CIVILIAN EMPLOYMENT, Comparability pay adjustments granted both a defined benefit and defined contribu­ JULY 1974 this year and in previous years have caused tion plan. The above dollar limitations are the rise in payroll costs in a situation where to be increased with the cost of living. federal employment levels were being reduced ENFORCEMENT HON. GEORGE .H. MAHON OF TEXAS over the last 5 years. Criminal sanctions may be imposed on per­ EXECUTIVE BRANCH sons who wmfully violate the reporting and IN THE HOUSE OF REPRESENTATIVES The following tabulation show average em­ disclosure provisions of the Act or who use Monday, September 23, 1974 coercive force to interfere with employee ployment and annual payrolls in the Execu­ rights under the Act. Mr. MAHON. Mr. Speaker, I include tive Branch, broken between civilian and Violations of the funding standards and a release highlighting the July 1974 military agencies, for the past ten years:

Department of Defense Department of Defense (including civil Civilian agencies (including civil Civilian agencies Total functions) (except Defense) functions) (except Defense) ------Total Average Average Average Average Average Average employ- Pa~ employ- Pa~ employ- Pay employ- Pay employ- Pa~ employ- Pay Fiscal year ment (billions ment (billions ment (billions) Fiscal year ment (billions) ment (billions ment (billions)

1964 ____ ------2, 476,656 $16.1 1, 0~2. 552 $6.8 1, 434, 104 $9.3 1970_------2, 958,364 $26.8 1, 264,207 $11.2 1, 694, 157 $15.6 1965 ______------2, 467, 858 17.1 1,024, 482 7.1 1, 443,376 10.0 1971_------~- - 2, 857,013 29.1 1, 162, 117 11.6 1, 694, f96 17.5 1966 __ ------2, 574, 429 18.6 1, 074,080 7. 7 1, 500,349 10.9 1972_ ------2, 839, 163 31.2 1, 128, 172 12.2 1, 710, 991 19.0 1967------2, 840,393 20.4 1, 234, 474 8. 7 1, 605,919 11.7 1973 __ ------2, 777,265 32.7 1, 076,039 12.4 1, 701,226 20.3 1968 ___ ------2, 935,826 22.3 1, 280,853 9.4 1, 654,973 12.9 1974__ __ ------2, 778,951 35.1 1, 041, 281 12.8 1, 737,670 22.3 1969------2, 961,640 24.0 1, 305, 664 10.2 1, 655,976 13.8

In the executive branch payroll costs in the Postal Service, Defense, Veterans, Treas­ nationals and includes an average of 33,503 fiscal year 1974 totaled $35.1 billion, and ury and HEW. for disadvantaged persons. civilian employment during the 12 months The average executive branch employ­ THE MONTH OF JULY 1974 of the fiscal year averaged 2,778,951. On this ment total of 2,778,951 includes an average Total civilian employment in the Execu.., basis, the average annual pay per federal of 2,433,035 full-time employees in per­ tive, Legislative and Judicial Branches of employee in fiscal year 1974 was approxi­ manent positions. the Federal GoverUIUent in the month of mately $12,500. The executive branch payroll cost of $35 July was 2,924,047, an increase of 30,222 as The executive branch payroll cost of $35.1 billion excludes $792 million for foreign na­ compared with 2,893,825 in the preceding billion in 1974 included $12.8 billion in De­ tions not on regular rolls and includes month of June. fense, $8.4 bilUon for the Postal Service and $121 million for disadvantaged persons em­ Executive branch $13.9 billion in other civilian department ployed under federal opportunity programs. Civilian employment in the Executive and agencies. Significant increases in pay The average employment total of 2,778,951 Branch in the month of July as compared costs during the fiscal year were shown for excludes an average of 100.262 for foreign with the preceding month of June, follows: September 2"3, 19 7 4 EXTENSIONS OF REMARKS 32265

Legislative ana juaicial branches Full-time in TempoTary, Total permanent part-time employ­ Employment ln the Legislative Branch in positions Change etc. Change ment Change July. totaled 36,619, an increase of 80 as com­ pared with the preceding month of June. Employment 1n the Judicial Branch in July June 1974·------2, 479,910 ------367,886 ------2, 847,796 ------Civilian agencies ______(1, 477, 060) ______(300, 659) ______(1, 777, 719) ______totaled 9,491, a decrease of 1 as compared · Military agencies ______(1, 002, 850) ______(67, 227) ______(1, 070, 077) ______with June. July 1974·------2, 477, 777 -2, 133 400, 160 +32, 274 2, 877, 937 +30, 141 Civilian agencies ______(1, 478, 121) (+1, 061) (325, 641) (+24, 982) (1, 803, 762) (+26, 043) Uniformed military personnel Military agencies______(999, 656) (-3, 194) (74, 519) <+7, 292) (1, 074, 175) (-t4, 098) In the Department of Defense uniformed military personnel decreased 1,465 in July, while civilian employment decreased 3,194 Some highlights with respect to Executive with 1,351. These increases are largely due during the month. Annual military pay costs Branch employment for the month of July, to the hiring of temporary summer aides. in fiscal year 1974 were $23 billion as com­ are: Civilian agencies reporting the largest in­ pared to $22 billion tn 1973, and civilian pay Full-time permanent employment showed creases in total employment (including both costs were $13 billion as compared to $12 major decreases in m11itary agencies of 3,194 full-time and part-time) in July were Agri­ billion in 1973. and Postal Service with 3,165. The largest in­ culture with 7,952, Veterans with 6,812.. In addition, Mr. Speaker, I would like crease was in Veterans Administration with Treasury with 1,536, Interior with 4,512, to include a tabulation, excerpted from 3,053. m111tary agencies with 4,098, HEW with 1,951 the joint committee report, on personnel Temporary and part-time employment and Federal Energy Office with 1,168. employed full-time in permanent posi­ shows increases primarily in-Agriculture with Employment inside the United States in­ tions by executive branch agencies dur­ B,632, military agencies with 7,292, Interior creased 27,635 from June and outside the ing July 1974, showing comparisons with with 4,562, Veterans with 3,259, Postal Serv­ United States there was an increase of 2,506 June 1973, June 1974, and the budget Ice with 2,6.51, HEW with 1,639 and Treasury for the month. estimates for June 1975: FULL-TIME PERMANENT EMPLOYMENT

Estimated June 30, Estimated Major agencies June 1973 June 1974 July 1974 1975 I Major agencies June 30. June 1973 June 1974 July 1974 1975J Agriculture ______81,715 79,621 78, 941 80,200 General Services Administration ______Commerce______35,721 36,733 36,732 28,300 28,549 28,616 29, 100 National Aeronautics and Space Adminis- 38,000 Deferrse: tration ______------_____ Civil functions... ______Panama Canal ______25,955 24,854 24,990 24,000 29,971 29,072 28,987 29, 100 13,680 Military functions ______957,310 973,778 970,669 995, 900 Selective Servke System______13,841 13,814 14,100 4, 607 2, 333 2, 032 Health, Education, and Welfare ______114,307 126,692 127,044 % 126, 200 Small Business Administration ______2, zoo Housing and Urban D"evelapment______15, 820 4, 050 3, 957 4, 005 4, 300 15,021 14,938 14, 200 Tennessee Valley Authority ______13, 995 Interior ____ ------__ ------56, 771 57, 568 57,518 59,400 U.S. Information Agency ______; ______14, 001 13, 909 Ill, 40ll 9, 048 8, 960 8,877 9,100 Justice. ______------45,496 48,188 48, 596 51,000 Veterans' Administration ______170, 616 Labor ______-- __ ------12,468 12, 788 12,308 174, 515 177, 568 181,800 State ______-- _____ r3, 000 All other agencies __ ------34,603 37,734 22, 578 22,644 22,961 23,400 Contingencies... 39,186 37, GGO Agency for International Development. 10, 108 8, 961 8, 805 ------5, 000 Transpurtati"on ______-- __ 9, 50ll 67,885 69,524 69,458 71,300 SubtotaL ______------______1, 874, 417 98,D87 104,356 104, 541 1, 916, 435 1, 917, 467 1, 968, 100 TreasuTY------lll, 400 U.S. Postal Service ____ ------547,283 563,475 Atomic Energy Commission ______7, 145 7, 411 7, 481 7, 800 560,310 534, 700 Civil Service Commission ______5, 9Il 6,190 6, 445 Total ______6, 300 2, 421, 700 2, 479,910 Environmental Protection Agency ______8, 270 9,144 9, 086 9,200 2, 477,777 2, 5C2, 800

1 Source: As lJmjected in 1975 budget document. It should be noted tlrat the President has 2 Excludes 4,000 positions involved in proposed transfer of St. Elizabeths Hospital to the Distric ordered 11 reduction of 40,000 in the projected 1975 level. of C:olumbia.

FOR SAFE ROADS safety hazards on public streets or roads not included on any federal-aid system. The ing House Resolution 1319, calling for a authorization covers a three-year period. halt to all U.S. economic and military as­ The money is intended primarily for use sistance and military sales to Turkey BON. EDWARD J. DERWINSKI by local a.uthorities on safety projects for until all Turkish armed forces have been OF .ILLINOIS which other state or federal funds are not withdrawn from Cyprus. The removal available. The elimination of hazards at IN THE HOUSE OF REPRESENTATIVES of Turkish troops is necessary to speed railroad-highway grade crossings are among negotiations toward a permanent settle­ Manday, September 23, 1974 the projects eligible for inclusion in the demonstration program. ment among Turkey, Greece, and the Mr. DERWINSKI. Mr. Speaker, as a Removing grade-crossing dangers is a. two Cypriot communities. At the same supporter of mass transit and more spe­ .recognized obligation of government. As time, I urge the administration to make cifically the section which provides fund­ funds are made available for this purpose, every effort now to facilitate negotia­ ing for the elimination of highway-rail it is incumbent upon state and local author­ tions on refugee Telief as well as to pro­ grade crossings, I call the attention of ities to co-operate as closely as possible with vide sufficient humanitarian aid so that the Members to an editorial in the Press federal efforts to carry out that obligation. immediate human needs can be met. It also is an obligation of the railroads When added to the Turkish decision Publications, serving communities in and the taxpayers to cooperat.e witb govern­ west Cook County, Ill., which strongly ment agencies to insure the elimination of to revoke its ban on opium cultivation, endorses this positive congressional ac­ dangerous railroad crossings. the massive Turkish violation of the first tion. The article follows: Cypriot cease-fire, which has led to Turkish occupation of over one-third FOR SAFER ROADS of the island, scarcely exemplifies mod­ Every highway-rail grade crossing holds a TURKISH ACTIONS IN CYPRUS potential for serious accidents. It ts a 1egiti­ erate and cooperative diplomacy. mate concern of government at every level, and now grade crossing safety has become HON. CLARENCE D. LONG a new national priority. OF MARYLAND CONGRESSMAN OTIS G. PIKE RE­ For the first time in bistory, federal High­ IN THE HOUSE OF REPRESENTATIVES PORTS TO HIS CONTITUENTS ON way Trust Fund money is authorized spe­ Monday, September 23, 1974 2D SESION, 93D CONGRESS cifically for rail-highway crossing safety projects. Another historic first ls the avail­ Mr. LONG of Maryland. Mr. Speaker, ability of federal money for crossing projects "Turkish actions in Cyprus have led to a HON. OTIS G. IXE off the federal-aid highway systems. serious international crisis, have strained OF NEW "YORK Special attention 1s called to the Federal­ relation!5 with two NATO allies, and have Aid Safer Roads Demonstration Program, caused great suffering among 225,000 IN THE "HOUSE OF REPRESENTNTIVES created by Section 230 of the Highway Act of refugees. Monday, September 23, 1974 1973. The Act authorizes $250 million in As an honorary chairman of the Mary­ Mr. PIKE. Mr. Speaker, the 2d ses­ funds for improvements to correct designated land Cyprus Relief Fund, I am sponsor- sion of the 93d Congress shows no signs 32266 1 EXTENSIONS OF REMARKS September_23, 1971v of completing its business before Christ­ became even bigger news, and the work­ Long Island's defense industry has had mas, but so my constituents may have ings of the rest of CongrP,sS were ignored. an up-and-down year with alternating this annual report in time to pass judg­ By the end of May, however, the House good news and bad news. Our office has ment on it, I am submitting it at this had already had 175 recorded votes on a tried hard to assist, and at the moment time. whole mass of various issues, of which t.l1ings look pretty good. A new plane is This is the 14th year in which I have only two had anything to do with the im­ being built by Fairchild Republic, and had the privilege of representing the good peachment inquiry. Grumman's financial difficulties, caused people of the First Congressional District Back in January our No. 1 problem in part by the Senate, seem to be solvable. of the State of New York in Washington, appeared to be the energy crisis, and by Eastern Long Island continues to and my 14th annual report to them. the end of May we had had 22 separate grow-too fast in my opinion. Our con­ Without any doubt, the 9 months of this vote on 8 different bills pertaining to gressional district has grown from a session of Congress have been the most energy. During the same period we had population of 467,742 at the time of the confused, controversial, and complex of had 17 votes regarding national defense, 1970 census to an estimated 547,000 to­ any of those 14 years. 9 votes regarding education, 6 regarding day. Our problems in housing, education, The first bill we voted on in January pension plan reform, and 6 regarding transportation, pollution, jobs, and rec­ was to authorize $294 million for a consumer protection, just as an example reation grow with it. So does the job 2-year program for the prevention and of what the House was working on. of the Congressman. Our office gets hun­ treatment of alcoholism, and considering The Watergate issue reached its cli­ dreds of requests for help daily, and we what happened for the rest of the year, max with the resignation of President try. it could not have been more timely. Nixon after it became clear that he would In my first year in Congress, in 1961, Early in the session in March we sent be impeached, and the succession of we had 116 recorded votes and quit for out a questionnaire asking our constitu­ Gerald R. Ford to the Presidency. His the year on September 27. As this an­ ents for their views on the most funda­ honeymoon period was brief, jolted nual report is prepared, we have already mental issues of the day. The response slightly when he named Nelson Rocke­ had 383 for the year, will probably have was gratifying, and almost overwhelm­ feller as his choice for Vice President, 100 more, and after a short break for the ing; 25,410 people took the time to re­ jarred severely when he granted a com­ elections, may well hang up our Christ­ spond to a rather complicated question­ plete pardon to Richard M. Nixon, and mas stockings in Washington. In our naire. Since it was not one of those "yes," continually undercut by an inflation first annual report we were able to de­ "no," "undecided" cards that can be which his Secretary of the Treasury said tail every vote. In this report, so the counted by a computer, several secre­ would take "years" to bring under list will not get unbearably long or the taries spent weeks of work tabulating control. print unbearably small, we are only and rechecking the results. Those results As this annual report is made, as it hitting the more important bills and the were clear. People were most concerned was back in March, it is inflation and the more controversial ones, omitting such and upset about inflation, about the high cost of living, combined with a high vital legislation as the record vote of economy, about the unfair tax system, unemployment rate and a sagging econ­ April 2, to keep people from making and only after that were they concerned omy which most concern Americans. money on the conservation emblem about impeachment. Neither the President nor the Congress "Woodsy Owl." Oh heck, I voted to keep As the year wore on, the national news has come up with any real programs to crass commercial interests from capi­ media devoted more and more of its time end it, nor can the Nation's most prestig­ talizing on Woodsy Owl's slogan, "Give to the unfolding story of Watergate, and ious economists agree on what a proper A Hoot, Don't Pollute." although Congress as a whole continued course of action should be. The President In my judgment it has been a good its normal, routine, and frequently dull has asked Congress to cut Government Congress. We have created a congres­ work, the Judiciary Committee domi­ spending, but then nominated as his sional budget-keeping operation so the nated the news. There are 21 committees Vice President the man who increased left hand will not spend-in theory, of the House of Representatives, plus government spending by 600 percent anyway-more than the right hand is seven special committees, but the press during his term as Governor of the State earning. We passed new minimum wage seemed to be aware only of what was of New York. It is my personal belief legislation; new safeguards for em­ going on in the Judiciary Committee. .that Government spending must be cut, ployees' pension plans. We passed a mass The other committees were equally but that other actions are essential be­ of legislation related to energy. The busy. The full Armed Services Committee fore inflation will show any signs of House has passed campaign financing on which I serve, for example, has as of abating. Energy costs have doubled in legislation and basic consumer prot-ec­ this date held 39 meetings and reported the last year, so we must conserve en;. tion legislation. The former has passed out 19 bills, 13 of which have already ergy. Productivity must be increased in the Senate and should become law. The been enacted into law. The Subcommit­ both raw materials and finished prod­ latter is now being considered by .the tee on Real Estate and Military Con­ ucts. Both as individuals, and as a na­ Senate. struction, of which I was tl:e chairman, tion, we have become used to luxuries we In a few areas the House failed badly. held 25 meetings before reporting out can properly do without. My special con­ By close recorded votes the House re­ the $2,983,821,000 construction bill for cern is for the elderly, living on fixed fused even to debate and consider the is­ this year. The special subcommittee on incomes and using up their savings sues of a national land use policy or voter the energy needs of the Department of merely in a desperate battle for survival. registration by postcard. On balance, Defense of which I was also the chair­ Some of the letters which reach my desk however, the 93d Congress will be record­ man this year held 13 meetings. Th~ Re­ are truly heartbreaking, and I only wish ed by history as having created some search and Development Subcommittee we could do more to help. checks and restored some balance to our on which I serve held 35 meetings and What we can do, we do. My own Sub­ ·constitutional system of checks and bal- the Special Investigating SubconAmittee committee on Military Construction­ ances between the legislative, executive, on which I also serve held 14 meetings. barracks, warehouses, military bases, et and judicial branches of Government. on April 30, at the President's request, cetera-cut more than 10 percent-a On a personal note, the Congressman Congress allowed the remaining ineffec­ total of $347 million from the President's worked hard, grew 1 year older, stayed tive wage and price controls to expire and budget, a record cut. I argued both on relatively healthy, went fishing when he the rate of inflation soared. the floor of the House and in committee for other cuts-in aid to Vietnam, in could, and was generally present to vote In May the release of the censored when he was supposed to be. Of the 383 Watergate tape transcripts sent a shock foreign aid, which were adopted. Others which I supported failed. By the same recorded votes held thus far, he was pres­ wave through the Nation. Such staunchly ent and voting on 381 of them. Republican and conservative periodicals token, there are certain priorities which as the Chicago Tribune called for the ·must be met. We must continue to edu­ Here are the most important ones­ President's resignation or impeachment. cate our young, heal our sick, care for ! would be most happy to have your views The hearings of the Judiciary Committee ·our elderly, and defend our Nation. on this record: September 28, 1974 EXTENSIONS OF REMARKS 32267 .

VOTING RECORD-2D SESS., 93D CONG., JAN. 21 TO SEPT. 11

Date Issue Pike vote Date Issue Pike vote

1974 May Suspend auto emission controls in the United States until 1977 except for Nay. those areas designated as having heavy polltion levels (yea 169; nay 221). Jan. 21 Authorize $294,000,000 in fiscal 1974- 76 for prevention and treatment of Yes. Authorize a relaxation of several 2ir pollution regulations and require Fed- Yea. alcoholism (yea 338; nay 22). era I energy administrator to collect information on the Nation's energy 22 Extend and expand authority of Federal agencies to carry out wildlife con· Yea. resources (yea 349; nay 43). servation and propagation programs on military reservations and other Authorize $2,800,000,000 over a 3-year period for Federal program of cancer Yea. public lands (yea 355; nay 25). research, detection and treatment (yea 390; nay 1). Expand fisheries zones off the coast of the United States by providing that Yea. Establish a National Institute on Aging within the National Institutes of Yea. baselines be straight rather than following the indentations of the coast- Healtto (yea 379; nay 1). lines (yea 375; nay 1). Establish a national board to plan for the voluntary conversion to the metric Yea. Feb. 5 Increase to $50,000 from $20,000 amount of a bank deposit that can be Present. system of measurement in the United States (yea 153; nay 240). covered by Federal deposit insurance and provide for Federal insurance Adopt rule to provide for House floor consideration of bill to establish a Yea . on unlimited amounts of savings deposits by State and local governments nationwide postcard voter registration system for federal elections (yea (yea 282; nay 94; present 30). 197; nay 204). Authorize and direct House Judiciary Committee to conduct an investigation Yea. Require American ships carry 20 percent of all oil and oil products imported Yea. of whether sufficient grounds exist to impeach President Nixon and to into the United States, with percentage increasing to 25 percent after June authorize use of subpoenas in conducting the inquiry (yea 410; nay 4). 30, 1975, and 30 percent by June 30, 1977 (yea 266; nay 136). 13 Provide for "lational Aeronautics and Space Administration program of Yea. 16 Adopt conference report on Legal Services Corporation bill establishing in- Yea . demonstrations of technology to use solar energy to heat and cool homes dependent public corporation providing legal services for the poor (yea and other buildings (yea 253· nay 2). 227; nay 143). 19 Increase veterans' education benefits by 13.6 percent and make other Yea. Give President authority to ration scarce fuels and to roll back and control Yea. changes in veterans' education and training programs (yea 382; nay 0). price of crude oil and oil products (yea 191; nay 207) (after veto of earlier 21 Increase flight pay provisions (yea 320; nay 67) (Pike amendment to restrict Nay. bill): . flight pay to officers who actually fly was rejected by the House). 22 Pike amendment to Defense Procurement Authorization bill to delete $499,- Yea. 27 Adopt conference report on National Energy Emergency Act granting the Yea. 000,000 authorization for continued development of the B- 1 manned President authority to impose gasoline rationing and other conservation bomber (yea 94; nay 309). measures, to ease clean air standards and to control price of domestic Reduce total authorization in Defense Procurement bill $733,100,000- to Yea. crude oil (yea 258; nay 151). $21,900,000,000-by setting a ceiling equivalent to the fiscal1974 congres­ 28 Establish minimum Federal standards for private pension plans (yea 376; Yea. sionally approved procuremen t appropriations, plus a 7.4 percent adjust- nay 4). ment for inflation (yea 185; nay 209). Mar. Amend Federal Energy Administration bill to roll back price of domestic Yea . Authorize $22,600,000,000 for fiscal 1975 for Defense Procurement, research Yea. crude oil to $5.25 a barrel and allow prices to rise no more than 35 percent and development(yea 358; nay 37). above the $5.25 ceiling (yea 218; nay 175). 23 Increase temporary Federal debt ceiling to $495,000,000,000 from $475,000,- Nay. Create a Federal Energy Administration replacing the Federal Energy Office Yea. 000,000 from July 1, 1974, through March 1975 (yea 191; nay 190). to manage Federal emergency energy programs (yea 353; nay 29). 29 Extend programs of the Office of Economic Opportunity through fiscal 1977 Yea . 13 Reduce State Department Authorization Act of 1973 by $12,700,000 for fiscal Yea. and transfer them to a separate Community Action Administration (yea 1974 (yea 331; nay 75). 331; nay 53). Implement 1971 Hague international hijacking convention and authorize Yea. June 3 Express sense of Congress that U.S. consideration of trade, financial aid or Yea. President to suspend air service to and from any country determined to be diplomatic recognition of North Vietnam or the Viet Cong be terminated acting inconsistently with the convention defining the circumstances under until they complied with provisions of the Jan. 27, 1973, settlement on which the death penalty must be imposed for hijacking crimes, and au­ cessation of hostilities in Southeast Asia regarding servicemen missing thorizing certain security measures at U.S. airports (yea 361; nay 47). in action (yea 273; nay 0). 14 Amend Freedom of Information Ac• of 1966 to improve public's access to Yea . Authorize $122,000,000 in fiscal 1975 for Coast Guard operations (yea 365; Yea. Federal Government documents (yea 382; nay 8). nay 0). 18 Revise special pay bonus structure of the armed services by allowing up ~ o Nay. Adopt conference report on Defense Department supplemental authorization Yea. $15,000 in selective reenlistment bonuses (yea 237; nay 97). of $769,000,000 for Defense Department for fiscal1974 (yea 354; nay 14). 19 Authorize $600,000,000 in fiscal 1975- 77 for nutrition program for the Yea. Adopt conference report on 2d Supplemental Appropriations bill making Yea . elderly (yea 380; nay 6). definite supplemental appropriations for various Federal departments 21 Authorize $82,256,000 for Peace Corps operations and up to $1,000,000 for Yea. and agencies of $8,771,474,398 for fiscal1974 (yea 339; nay 27). fiscal 1975 (yea 294; nay 103). Amend and extend the Sugar Act of 1948 for 5 years through Dec. 31, 1979 Nay. 27 Provide supplemental appropriations of $750,000,000 in fiscal 1974 for Yea. (yea 175; nay 209). readjustment benefit payments to veterans enrolled in educational and Appropriate $4,475,410,000 for fiscal1975 for Federal public works programs Yea. vocational programs (yea 398; nay 0). and the Atomic Energy Commission (yea 374; nay 21). Extend school impact aid programs for 3 years, through fiscal1977, instead ol Yea Establish high seas oil port liability fund financed from a 2 cents per barrel Yea. 1 year (yea 276; nay 129). user charge to pay for damages suffered to property within the U.S. terri- Extend most programs authorized by the Elementary and Secondary Educa- Yea. torial limits from an oil spill which occurred as a part of high seas port tion Act of 1965 through fiscal 1977 and restrict the use of busing for operation (yea 311; nay 27). desegregation purposes (yea 380; nay 26). 11 Adopt rule providing for House Floor consideration of Land Use Planning Yea. 28 Adopt conference report on minimum wage increase for most nonfarm Yea . bill providing for Federal grants to the States to help them draft compre­ workers from $1.60 to $2.00 on May 1, 1974; then $2.10 on Jan. 1, 1975, hensive land use plans (yea 204; nay 211). and to $2.30 on Jan. 1, 1976, and extending new minimum wage coverage 17 Continue assistance o·· $1,000 a year to disadvantaged students seeking Yea. to approximately 7,000,000 workers (yea 345; nay 50). entry into legal profession (yea 318; nay 53). Apr. Authorizes $475,000 for House Internal Security Committee in fiscal 1975 Yea. 18 Adopt conference report on Congressional Budget Reform bill revising (yea 247; nay 86). Congressional procedures for considering Federal budget, shift Federal Establish an independent Consumer Protection Agency to represent the in- Yea. government to an Oct. 1-Sept. 30 fiscal year, set deadlines for considera­ terests of consumers in the activities of Federal agencies (yea 293; nay ation of authorizlltion and appropriations bills (yea 401; nay 6). 94). Appropriate $5,554,254,100 for the Departments of State, Justice, Commerce Yea. 4 Amend Defense Supplemental Authorization bill by increasing fiscal 1974 Nay. the Federal judiciary and 13 related agencies in fiscal 1975 (yea 365; ceiling on U.S. aid to South Vietnam from $1,126,000,000 to $1,400,000,000 nay 36). (yea 154; nay 177). 19 Appropriate $8,848,978,448 for Department of Transportation and related Yea. 10 Increase to $250,000,000 from $100,000,000 supplemental appropriation to Yea. agencies (yea 392; nay 4). continue existing public service job programs triggered whenever na- 20 Exempt increases in Social Security benefits after June 1974 in computing Yea. tional unemployment is 4.5 percent or more, and to $500,000,000 from income eligibility for public and Federally subsidized housing and the $350,000,000 for both existing and new public service jobs programs amount of retirement rent for such housing (yea 285; nay 114). (yea 236; nay 168). Reinstate a low-interest direct loan program for unsubsidized, nonprofit Yea. Appropriate $4,500,000 for implementing a Federal program to prevent and Yea. developers of housing for the elderly and make occupants of housing treat child abuse (yea 254; nay 149). constructed under program eligible for Federal rent subsidies (yea 274; Cut all fiscal1974 supplemental appropriations by 5 percent ($440,000,000) Yea. nay 112). (yea 145; nay 249). Authorize $11,300,000,000 (including $1,500,oo~.ooo in Treasury borrow- Yea. Appropriate $8,811,362,043 in fiscal 1974 for defense, pay cost increases, Yea. ing authority) in fiscal 1975-77 for housing assistance programs and manpower programs and other purposes (yea 375; nay 22). community development block grants and encourage greater avail­ 23 Adopt conference report on bill revising the special pay structure for Yea. ability of mortgage credit (yea 351; nay 25). physicians in Armed Forces (yea 372; nay 17). 21 Add $7,000,000 to the Agricultural appropriations bill for grants to rural Yea . Amend Atomic Energy Commission authorization bill to add construction of a Yea. volunteer fire departments (yea 213; nay 103). Appropriate $13,405,420,000 for Agricultural, Environmental and consumer Yea. N~lt{e~.~~~i~~~~~~ab~~~t"ogry ~~~ao2j~r;a~~oyn1 f2)}ect at the Los Alamos, protection programs in fiscal 1975 (yea 278; nay 16). Increase fiscal1975 AEC authorization for controlled thermonuclear(fusion) Yea. 24 Appropriate an additional $179,000,000 for veterans' benefits and programs Yea. research to $112,000,000from $91,000,000(yea 115; nay283). for fiscal year ending June 30, 1974 (yea 337; nay 0). 24 Provide $50,000 Federal payment to surviving dependents of non-Federal 25 Appropriate $5,503,794,000 in fiscal 1975 for the Treasury, Postal Service, Yea. public safety officers-policemen, firemen, correctional officers, prison Yea. Executive Office of the President, and other independent agencies (yea and probation officers who died from injury sustained in performance of 367; nay 13). their work (yea 320; nay 54). 26 Appropriate $20,846,323,500 for the Department of Housing and Urban De· Yea. 25 Authorize $3,300,000,000 in fiscal 1975 appropriations for National Aero- Yea. velopment, the National Aeronautics and Space Administration, National nautics and Space Administration (yea 341; nay 37). Science Foundation, and Veterans' Administration and related agencies in Bar National Science Foundation from performing any research using live Yea. fiscal1975 (yea 407; nay 7). human fetuses outside the womb except to save the life of the fetus (yea Extend Public Works and Economic Development Act of 1965 for 2 years Yea. 281; nay 58). through fiscal 1976 and authorize appropriations of $510,000,000 for the Authorize $788,200,000 in fiscal1975 appropriations for the National Science Yea. ~~~nf ).ic Development·Administration in each of fiscal1975-76 (yea 402; Foundation (yea 330; nay 8). 1 Establish a National Bureau of Fire Safety and Fire Research Center in the Yea. 27 Appropriate $33,156,541,000 for Departments of Labor, Health, Education Yea . Department of Commerce and authorize National Institutes of Health to and Welfare and related agencies in fiscal1975 (yea 329· nay 43). develop a program for improved treatment of burn victims (yea 352; nay 28 Fiscal1975 appropriation for the District of Columbia of $i,074,124,000 com- Yea. 12). posed of Treasury funds and city revenues (yea 236; nay 36). 30 Appropriate $2,269,838,000 for energy research and development programs Yea. Provide expanded and coordinated Federal program of assistance and re- Yea. of federal government (yea 392; nay 4). search concerning juvenile delinquency (yea 329; nay 20). 32268 EXTENSIONS OF REMARKS September 23, 1974

VOTING RECORD-2D SESS., 93D CONG., JAN. 21 TO SEPT. 11-Continued

Date Issue Pike vote Date !ssue Pike vote

July Authorize U.S. participation in and contribution of $1,500,000,000 to Inter- Yea. Aug. Liberalize Veterans Administration home loan guaranty programs (yea 384; Yea. national Development Association and permit U.S. citizens to own, buy or nay 0). sell gold effective Dec. 31, 1974 (yea 225: nay 140). Extend through fiscal year 1975 scholarship program for the National Health Yea. Adopt conference report on Diabetes Research bill to authorize $41,000,000 Yea. Service Corps and loan program for health professions students (yea 371; in fiscal 1975- 77 to establish new centers for diabetes research and train- nay 9). ing and create a national commission to develop a long-range plan to com- Reduce funds for military assistance to South Vietnam by $300,000,000 to a Yea. bat diabetes (yea 356; nay 4). total of $700,000,000 (yea 233; na~ 157). 10 Improve coordination of Federal geothermal energy research and develop- Yea. Limit defense spending for fiscal 1 75 to $81,200,000,000 (yea 178; nay Yea. ment programs and to guarantee loans or pay interest for borrowers for 216). research, development, demonstration or commercial operation of geo- Appropriate $83,393,570,000 tor Defense Department activities and all armed Yea. thermal energy projects ~ea 404; nay 3). services and weapons programs for fiscal 1975 (yea 350; nay 43). Extend to Aug. 1, 1987 Fe eral program insuring the public against losses Yea . Lower campaign spending limits for House general elections and primary Yea. in the event of a nuclear accident (yea 360; nay 43). elections to $42,500 from $75,000 (yea 187; nay 223). 11 Adopt conference report on Hospital Employee Bargaining Rights bill to Yea. Provide tor public financing of presidential e1ection campaigns, impose Yea establish certain labor relations procedures for all nongovernmental campa ign spending and contribution limits, and establish a board of health care institutions, including right to strike only if 10 days' notice supervisors to oversee the law (yea 355; nay 48). were given (yea 205; nay 193). Authorize $2,983,821,000 for military construction projects for fiscal 1975 Yea. Authorize $192,000,000 in fiscal 1975 76 for Federal programs to aid those Yea. (yea 322; nay 30). (Pike bill) with developmental disabilities such as mental retardation and cerebral 12 Authorize $1,700,000,000 in fiscal1975-76 for health services formula grants Yea. palsy (yea 387; nav 2). to the States, lamily planning programs, community mental health centers, Authorize $200,000,000 in operatin~ grants to National Rail Passenger Cor- Yea . migrant health services and community health cen ters for the medically poration (Amtrak) for fiscal 19 5, increase the ceiling on guaranteed underserved (yea 359; nay 12). government loans for Amtrak and make other amendments to the Rail Prohibit Department of Transportation from requiring vehicles to be Nay. Passenger Service Act of 1970 (yea 317; nay 67). equipped with safety belt-ignition interlock systems, sequential warning 16 Provide temporary emergency financing to livestock producers through the Nay. devices or passive restraint systems such as air bags, such devices to be establishment of a government-guaranteed loan program (yea 210; nay at purchaser's option (yea 339; na~ 49). 204). 13 Extend to June 30, 1976, from June 0, 1974, authority of the Secretary of Yea. 22 Amend rules of the House to allow the broadcasting of committee meetings Yea . Commerce to regulate exports (yea 379; nay 6). as well as committee hearings, when meetings are open to the public 19 Establish thro':Hh June 30, 1976, a Cost of Living Task Force within the Yea. (yea 346; nay 40). Executive 0 1ce of the President to monitor wage and price increases 24 Appropriate $3,153,515,310 in fiscal 1975 for the Department of Interior Yea. (yea 379; nay 23). and related agencies (yea 385; nay 22). Amend the Emergency Daylight Saving Time Energy Conservation Acl of Yea. 25 Set Federal guidelines for regulation of surface mining for coal and for Yea. 1973 to exempt from its provisions the period from the last Sunday in reclamation of land that had been strip-mined (yea 291; nay 81). October 1974 through the last Sunday in February 1975 (yea 383; nay 16). 30 Recommit (kill) Urban Mass Transit Subsidies bill to conference committee Nay. Make permanent Youth Conservation Corps and authorize appropriations Yea. (yea 221; nay 181). of $60,000,000 annually (yea 361; nay 38). 31 Authorize emergency 6-month study of inflation by Joint Economic Com- Yea. 20 Reduce total authorization for Mass Transit for 6-year period from $20,- Nay. mittee (yea 335; nay 66). 400,000,000 to $11,400,000,000 (yea 257; nay 155). Adopt conference report on Elementary and Secondary Education Act ex- Yea. Delete from Mass Transit bill provision to increase allowable weight for Yea. tension and declare that students should not be bused beyond the school trucks operating on interstate highways (yea 252; nay 159). next closest to their homes, but allow the courts to order more extensive Authorize $11,400,000,000 in fiscal years 1975- 80 for mass transit capital Yea. busing to protect the civil rights of individuals as guaranteed under the and ogerating subsidies (yea 324; nay 92). Constitution (yea 323; nay 83) Establis a Council on Wage and Price Stabilit~ within the Executive Office Yea. Require affirmative action by Congress on international agreements for Yea. of the President to monitor inflation (yea 36 ; nay 27). peaceful cooperation in nuclear technology including sale of nuclear 21 Allow either the House or the Senate to disapprove Export-Import Bank Yea. equipment to foreign nations before they could be implemented (yea financing ot exports to a Communist nation by adopting a resolution within 373; nay 8). 30 days after the bank reported the transaction to Congress (yea 178; Aug. Adopt conference report appropriating $708,275,650 in fiscal1975 for opera- Yea. nay 215). tions of legislative branch (yea 380; nay 13). Extend Export-Import Bank through June 30, 1978, and require the bank Yea . Authorize $49,990,000 for fiscal 1975 for Radio Free Europe, Radio Liberty Yea. to report to Congress any loans of $50,000,000 or more to finance exports and the Board for International Broadcasting (yea 278; nay 58). to Communist nations (yea 330; nay 67). Extend for 2 years, through Sept. 30, 1976, existing authorization for number Nay. 22 Concur in Senate amendment to Veterans Education Benefits bill that Yea . of lieutenant colonels and colonels in the Air Force (yea 271; nay 108). would increase rates ot veterans educational and vocational rehabilita- Provide veterans medical care benefits to persons, now U.S. Citizens, who Yea. tion benefits (yea 386; nay 0). served with the armed forces of Poland or Czechoslovakia as U.S. allies Sept. 11 Establish a national program for research and development in nonnuclear Yea. in World War I or World War II (yea 341; nay 40). energy sources (yea 327; nay 7).

BOB ROBERTSON NAMED ASSIST­ under Vice Presidents Agnew and Ford The final a wards ceremony of this ANT TO THE SECRETARY FOR was exceptional. The nature of his job competition took place on September 20, CONGRESSIONAL LIAISON gave him access to the Congress, the 1974. executive branch and State govern­ Anthony and Joseph Paratore's success HON. RALPH S. REGULA ments. This coupled with his experience is a splendid first for America. They are in the Nevada Governor's office equips the first American duo piano team ever OF OHIO him ideally for his new responsibilities," IN THE HOUSE OF REPRESENTATIVES said Secretary Morton. to win an international music competi­ tion. This outstanding performance en­ Monday, September 23, 1974 Unfortunately, it is the other body that will benefit from Bob's new assignment. titles them to radio and television ap­ Mr. REGULA. Mr. Speaker, a gentle­ I can say without hesitation that my col­ pearances as well as concert tours man that provided assistance to me in leagues on the other side of the Capitol throughout Europe. my capacity as ranking minority mem­ will benefit from and be pleased with This is a tremendous achievement for ber of the Subcommittee on Indian Af­ Bob's expertise and winning ways. the Paratore boys, for their family and fairs, Mr. Bob Robertson, has recently been named as Assistant to the Secre­ for the Nation Years of hard work and tary for Congressional Liaison, Depart­ personal sacrifice, and hours of training ment of the Interior. contributed significantly to this triumph. Bob served as Executive Director of the ANTHONY AND JOSEPH PARATORE: Anthony and Joseph's parent must also National Council on Indian Opportunity TWO OUSTANDING AMERICAN share in this achievement, for they were since 1969. His background in Indian af­ MUSICIANS the guiding light of encouragement that fairs proved to be of exceptional benefit helped to make this day possible. to me and to the American Indians whom We all know how intense and exhil­ we on the committee serve. HON. THOMAS P. O'NEILL, JR. arating this kind of international com­ In his home State of Nevada, Bob is OF MASSACHUSETTS petition can be. Anthony and Joseph had well-known for his community service at IN THE HOUSE OF REPRESENTATIVES to survive four difficult rounds of com­ both the local, Reno-Carson City, and petition to achieve this accolade. State level. Prior to coming to Washing­ Monday, September 23, 1974 ton, he was executive administrator for Mr. O'NEILL. Mr. Speaker, I want to While this is a very exciting day in the former Gov. Paul Laxalt of Nevada. Ile share with my colleagues my great de­ Paratore family, I know that it is just served as executive vice president of the light in announcing that two of my the beginning of much greater success Homebuilders Association of Northem neighbor's children, Anthony and Joseph and international recognition. My heart­ Nevada and before that was a radio and Paratore, have just won on September iest congratulations on an outstanding television broadcaster in both Nevada 9, 1974, first prize at the 23d internation­ performance and best wishes for con­ and my home State of Ohio. al music competitions in Munich, Ger­ tinued good fortune. We are all so very "Robertson's work in Indian Affairs many. proud of Anthony and Joseph Paratore. September 23, 1974 EXTENSIONS OF REMARKS 32269 CONGRESSMAN WYDLER CON­ brought to the direct attention of top The other proposal concerns the dan­ TINUES FIGHT AGAINST JET Federal officials. It was a most successful ger to our areaf rom the Concorde Super­ NOISE community input meeting where the sonic Transport, SST. Foreign goverr:­ need to revise the rules to make more use ments are seeking permission to land It of the ocean waters for landings a;nd at J.F.K. Airport, but I have obtained HON. JOHN W. WYDLER takeoffs was stressed and new restriC­ assurance that an environmental impact OF NEW YORK tions on pilot deviations from established statement will be required before any IN THE HOUSE OF REPRESENTATIVES procedures were pressed. Dr. Meyer, on such permission is granted. Monday, September 23, 1974 behalf of EPA, was fully briefed on the RESULTS OF JULY CONGRESSIONAL HEARINGS Mr. WYDLER. Mr. Speaker, this has local problems and said the E~A was SUMMARIZED been a year of intense and continuous pushing its reviews and was sendmg Iy.Ir. The subcommittee continued its in­ activity in the fight against jet noise. John c. Schettino, Director of the Avia­ quiry into the problems of aircraft noise Progress has been made, but at too slow tion Noise Control Requirements and abatement by holding 2 days of hear­ Technology Staff of the EPA, for ~non­ a rate to satisfy me. I know, however, sight evaluation of current practices at ings on July 24 and 25. Much contro-yer­ that this fight requires perseverance J. F. K., within a week. sial testimony was presented by vanous and determination and I intend to sta.Y The second meeting was with the top witnesses which the subcommittee is cur­ with it all year long, year after year, until decisionmaking official of the FAA, Dr. rently evaluating. It is planned t~at the it is won. Charles Foster, and presiding supervisor subcommittee will act upon an aircraft I find myself leading this fight in ~he Francis T. Purcell of the Town of Hem:p­ noise report on Thursday, October 3. House of Representatives, as the ranki:Ug stead, together with the mayors and VIl­ A major conclusion about the July Republican member of the Aeronautics lage officials that make up TVASNAC. hearings is that the FAA is expressing Subcommittee of the Science and ~~tro­ a much more positive attitude about At this meeting, a review in depth ~as nautics Committee. From that positiOn I made of a report TVASNAC compiled measures to reduce aircraft noise. Addi­ can watch and push for action at the demonstrating the unfair and improper tionally, the FAA and EPA are c~m~it­ Federal level. runway use at Kennedy Airport. ted to several future actions of maJor Im­ As this summer ends, the worst of the The TVASNAC report was the result portance. jet noise season is over, but it is not the of a 7-month study which was sent First. The FAA said it would prepare time to stop pushing for progress. In fact, to me and forwarded to the Administra­ and publish a tentative schedule of fu­ I am increasing pressure at this season to tor of FAA for corrective action. ture regulatory actions. This schedule set the stage for relief next su~mer. . The meeting provided the forum for would constitute an expression of policy The main area of hope for rmmediate deciding on ways that runway use could on the part of the Government to guide relief from jet noise comes from the op­ be improved. industry and inform the public on future erating procedures used at Kennedy Air­ These meetings are vital to pave the noise reductions; port. The solution of runways and ~P­ Second. The FAA committed itself to way to improvements and chang~s in ~he proach and landing patterns is of vital current runway-use system which Im­ actions leading to a new rule on operat­ importance to the people of o~r .area .. poses unfair noise burdens on the people ing procedures for both landing and take­ The Federal Aviation Admmistratwn, of the Fifth Congressional District. off. The purpose of the procedures would FAA, imposed the current ru~es, and be to reduce noise levels consistent with these rules have never been reviewed to WYDLER ACTS AS CHAIRMAN OF JET NOISE maintaining safety of flight; and see if they are the best that can be HEARINGS Third. As a result of and following the devised. In July of this year, I had the high hearings, the EPA expressed a willing­ TWO VITAL MEETINGS honor of acting as chairman of Aeronau­ ness to cooperate in a special study of I arranged two vital meetings right tics oversight Subcommittee hearings, aircraft noise abatement operating pro­ here on Long Island. I had the top deci­ intended to advance the fight against jet cedures around John F. Kennedy Inter­ sionmakers come from Washington to noise. national Airport. our Fabulous Fifth Congressional Dis­ It i~ very rare for a Republican to serve In summary it can be stated that the trict to meet with those who are suffering as chairman of committee hearings in hearings were a highly valuable forum the most and have ideas that can help. the Congress, but I think it was recogni­ and will result in more rapid actions by The first meeting was with the officials tion from my colleagues in Congress, both various Federal agencies and industry to of the Federal Aviation Administration, Democrats and Republicans, of the effort reduce aircraf~ noise. I have made in the jet noise fight. FAA and Environmental Protection TWO SEGMENT APPROACH Age~cy, EPA, in my Fifth Congressional The hearings were called to stimulate the efforts of the FAA, the EPA, and the Replies to the FAA request for com­ District office, as part of the review EPA ments on an advance notice of proposed is making of jet noise operating proce­ National Aeronautics and Space Admin­ istration, NASA, to reduce jet n~ise. rulemaking were received by the end of dures at Kennedy-a review I requested. June 1974. In general, the Air Trans­ At this meeting the EPA promised an They also provided the one medmm where Congress could push for faster port Association-the airlines-and the indepth review of runway use at Ken­ Airline Pilots Association-ALPA-ex­ nedy Airport in order to reduce jet noise action. It was my fight in the House, years pressed opposition. NASA and FAA con­ The meeting was arranged to bring to­ tend that we are nearing the end of nec­ gether top officials of the EPA and FAA, ago, that result€':1 il: the EPA ~eing given a role in the jet noise field. The agency essary testing and that the results are from Washington, and community lead­ favorable. Within the past month a ers in the Five Towns, Elmont, Valley has done a good job and stimulated the FAA to propose two new rules-the first United Airline DC-8 commenced inserv­ Stream and Floral Park areas. Dr. Alvin ice evaluation with line pilots. Recently, Meyer 'Deputy Assistant Administrator to require two-segmented approaches which would greatly reduce landing engineering studies to determine the ap­ of EPA and Dr. John Powers, chief en­ plicability of the two-segment approach vironm~ntal scientist, Office of Environ­ noise, and the second to require the older and noisier jets to be retrofitted with to various Boeing, McDonnell Douglas, mental Quality, FAA, flew from Wash­ and Lockheed jet transport aircraft were ington to attend the meeting. Attending sound-reducing material which would re­ duce jet noise on landings and takeoffs. completed. Evaluations are underway. for the community were Mr. Herb War­ Although the evidence presented to the shavsky, trustee of the village of Law­ Both rules are the result of earlier hear- ings of our subcommittee. . subcommittee in its July hearings and rence; Hon. Calvin Polivy, village justice the comments to the FAA on the pro­ of the village of Lawrence; Henry Rose I am pushing two new proposals at this time. The first, a review by the EPA posed rule differ tremendously, this is of Inwood; and Clifford A. Deeds, direc­ one of the central subjects that we must tor of the Town-Village Aircraft Safety of the jet noise abatement procedures deal with in our subcommittee report. I and Noise Abatement Committee, at Kennedy Airport. The current rules think we should press hard for rapid TVASNAC. proposed by the FAA should be examined action. This meeting allowed the local com­ to see how they can be improved to pro­ munity to have input directly with the FLEET RETROFIT RULE vide more jet noise relief. I have written In March 1974, the FAA issued a "Pro­ Federal officials making decisions for to the Administrator of EPA asking for posed Notice of Rule Making" on retrofit this area. The need for requiring new such a review at Kennedy Air::;>ort, which of the civil fleet. It was proposed that procedures to reduce jet noise was would be a first in the country. one-half of the fleet should meet FAR 32270 EXTENSIONS OF REMARKS - Septentber 23; 1974 part 36 by mid-1976 and the remainder been canceled and that no further effort ought to be resumed. The answer is getting by mid-1978. Replies received by the end would be made to land the Concorde at longer and more impressive by the day. of June and testimony during our July J.F.K. Airport this summer. Apparently The benefits derived from satellites alone make a list that soon may have to be meas­ hearings were all over the place. The the plane did land at Boston and Miami ured in light-years. They include much-im­ FAA is now evaluating the responses; in and Dulles. proved weather forecasting, more efficient our hearing the FAA said the program I was pleased that there were no land­ telephone communications, transoceanic might have to slip 6 months. ings or takeoffs at J.F.K., because the TV, better education, swifter exchange of NOISE RESEARCH LABORATORY (LANGLEY plane in its present configuration is ex­ information of all types (for instance, medi­ RESEARCH CENTER) tremely noisy and its landing would set cal, scientific and business), improved navi­ gation and mapping. Noise research laboratory was dedi­ a precedent to which I object. In fact, I voted against an American SST on the Satellites are being used to inven~ory crop cated June 1974. yields, detect pollution study geological Psychoacoustics staff was increased in grounds that it was too noisy. It would formations, monitor flood areas, spot new fiscal year 1974. be ironic to have our airports used by mineral resources and keep c-heck on lake Basic research funding has been in­ foreign SST's, which are even worse. sedimentation, to name just a few other REVIEW OF STEPS TO FIGHT JET NOISE things. creased in fiscal year 1975. We don't have the computers or the data WYDLER'S RECOMMENDATION TO NEW YORK I have recommended the following to arrive at the precise figures. But we'd be PORT AUTHORITY series of steps which could be of help willing to bet that the returns from satellites I recommend to the Port of New York in our Fifth Congressional District: alone will in time reimburse the nation First, A continuation of the retrofit­ many times over for its inv~ment in space. Authority that fleet retrofit regulations ting program to quiet the 707's and DC 8's And these are returns in which every citizen, be drawn to reduce jet noise at Kennedy which are the noisiest planes in the sky from the wealthiest to the poorest, share in Airport. today; some degree. The Port of New York Authority has The American public ought to keep that already taken one step in this direction Second. Implementation of the high­ in mind from year to year as their repre­ by establishing jet noise limits on take­ approach, two-segment landing systems sentatives in Congress come under pressure offs at the airport. What I am suggesting which could cut jet noise in half in land­ from visionless persons and groups who now is a regulation to require airlines fly­ ing patterns; would do the space program in through Third. EPA review of noise abatement financial starvation. ing jet aircraft at Kennedy Airport to In case anybody asks that question again, undertake a program to require all such procedures used at Kennedy Airport. This review is already underway and can the space program is worth it-and then aircraft to meet noise standards estab­ some. lished by the FAA, known as Federal Air serve to reduce jet noise by effective run­ Regulations, part 36. way use; The regulations would require all air­ Fourth. Is a new, special fleet jet noise THE PLIGHT OF THE CHURCH IN lines to increase the number of aircraft rule for Kennedy Airport which would HUNGARY meeting part 36 standards so that by require the retrofit of all aircraft and December 31, 1976, at least 50 percent of require them to meet jet noise limits. the aircraft operating at J.F.K. will come Such a rule would be similar to the one HON. EDWARD J. DERWINSKI within the requirements. Starting on adopted at Logan International Airport OF ILLINOIS January 31, 1977, and ending December in Boston; and IN THE HOUSE OF REPRESENTATIVES Finally, we need to closely and con­ 31, 1979, all aircraft would be required Monday, September 23, 1974 to meet these reduced noise levels. There stantly monitor the Concorde noise levels would be fines imposed on each non­ and insist on an environmental impact Mr. DERWINSKI. Mr. Speaker, today, compliance carrier for violation of this statement before the Concorde is allowed I place into the RECORD a lecture delivered regulation. to land at Kennedy Airport. I am con­ before the Roman Forum at Fordham Federal regulations of this type are be­ vinced, however, that the Concorde will Uni':'ersity by Dr. Andras H. Pogany, ing considered by the EPA and the FAA. never meet current requirements for jet president of the World Federation of I believe that it is important to the noise levels, and it should not be allowed Hungarian Freedom Fighters and a pro­ Long Island area that the Port Author­ to use our skies unless it does. fessor at Seton Hall University. ity take immediate action, which initia­ These are important steps that can be For the information of the Members, tive can stimulate Federal action. implemented now, and certainly should the Roman Forum is a monthly exami­ Such regulations have been adopted be. nation of philosophical and theological by the Massachusetts Port Authority at I will continue to work and fight for questions from a viewPoint inspired and Logan International Airport in Boston. each of these steps in the days and years guided by the official teachings of the Such regulations at Kennedy Airport ahead. Roman Catholic Church. The Roman would push industry to r;et behind the Forum invited His Eminence Jozsef effort to retrofit the noisy planes in the Cardinal Mindszenty to their meeting jet fleet. It would be a step in the pub­ SPACE A RICH STRIKE of May 10, 1974, where Dr. Pogany spoke lic interest. on the situation in Hungary as far as the Catholic Church is concerned. The full WYDLER SUCCESSFUL IN STOPPING SST HON. OLIN E. TEAGUE text of this lecture bears the title, ''The LANDING AT J .F.K. OF TEXAS Plight of the Catholic Church in Hun­ In June I was pleased to announce that IN THE HOUSE OF REPRESENTATIVES gary". the Concorde, the French-British Super­ Monday, September 23, 1974 Mr. Speaker, I believe this lecture has sonic Transport, SST, would not stop or Mr. TEAGUE. Mr. Speaker, in an edi­ worldwide significance and an especially try to land at John F. Kennedy Airport valuable commentary on the situation on scheduled demonstration flights. I torial in the Fort Worth Star-Telegram of September 2, 1974, the writer dis­ that exists within Hungary. spoke with officials of the FAA and re­ THE PLIGHT OF THE CHURCH IN HUNGARY ceived assurance that such plans and cusses the benefits of our space pro­ proposals were being withdrawn. gram. I agree wholeheartedly with the (By Dr. Andras Pogany) Originally the Port Authority of New article and I hope that my fellow Mem­ The Roman Catholic Church in Hungary York and New Jersey refused to allow use bers of Congress will also agree. We need is today suffering its worst and most fear­ of the airport unless the plane could meet to maintain continued support of our ful period in its thousand-year history. Even space program because it has certainly to recount the events of the past three dec­ the takeoff noise requirements. Since it ades is a heart-rending venture for a Ro­ was unlikely this could happen, the proven its worth. man Cathollc and for a Hungarian. Still, the French Government was pressuring the The editorial follows: :full story bas to be told in order to under­ FAA to obtain permission to land at SPACE A RICH STRIKE stand better the much-reported recent con­ J.F.K. Airport. 3ince the tapering off of spending on flict over the church-state relations in Hun­ At this point, I spoke to officials of space projects, people have about stopped gary. the FAA and made known my own strong asking, "V'hat are we getting !or all the THE PAST objections to any such SST landings and money poured into the space program?" The Hungarian nation was born with the was assured by FAA that these plans had The asking of that once-familiar question assistance of the Roman Catholic Church September 23, 1974 EXTENSIONS OF REMARKS 32271 and the Church remained an inseparable colleges in 1945 · none survived in 1965. Be­ was actually prevented in Budapest and in part of Hungarian life for a thousand years. tween these dates Catholic high schools other cities; all attempts by the hierarchy In old times many an archbishop or bishop dropped in number from 49 to 8, Catholic to establish contacts with the Holy See were died on the battlefield with the Hungarian periodicals and newspapers from 68 to 4, frustrated again and again. Any priestly ac­ Army: the last one in 1526, at the famous Catholic publishers from 50 to 2 and lay tivity among the youth outside of the prem­ battle of Mohacs. Many of them also served organizations from about 4,000 to 2. ises of the Church was not only harassed, but as diplomats, cabinet members or statesmen Needless to say Catholic bishops lost their several punished as well; seven priests were as well. In turn: the Hungarian State ex­ membership in the Parliament in 1945. The sentenced to long prison terms for teaching pressed its special appreciation toward the government also confiscated almost all Catechism to youngsters during some ex­ Church in many ways. Every King of Hun­ Church possessions without any compensa­ cursions as late as 1965. Atheism and calum­ gary was a Roman Catholic and as a suc­ tion which left the Catholic Church without nies against the Church were propagated cessor of the first apostolic King, St. Stephen, any financial means from one day to the by all the communication media and the had special privileges in appointing bishops other. This necessarily meant a complete de­ Communist government fostered again the up to 1918. Even between the two World pendence on government subsidies which, in so-called peace movement for priests (Opus Wars, Roman Catholic bishops were ex officio turn, were used by the States as an effective Pacis), an outright Communist front-orga­ members of the Upper House in the Hunga­ means of intimidation against the Catholic nization. rian Parliament and the Archbishop of Esz­ Church and its clergy. To make things worse, there was also dan­ tergom, as Primate of Hungary was also an But the greatest tragedy which struck the ger that the vacant or de facto vacant sees ex officio member of the Crown Council, Church was the relentless persecution of would be filled by totally unworthy govern­ established by law to secure a peaceful suc­ the bishops and the clergy, and the burning ment appointees. This consideration led to cession, when the Head of State became of a great percentage of existing religious the Vatican-Kadar "protocol" of Septem­ incapacitated or died. literature in Hungary. From the mock-trial ber 30th, 1964. These few scattered data show that the of Cardinal Mindszenty, which resulted in his sentencing for life-imprisonment [in THE 1964 VATICAN-KADAR "ACCORD" Roman Catholic Church has played an The "protocol"-and not a treaty-does enormously important and decisive role in 1949] the persecution of bishops and priests did not really stop until the outbreak of the not mention Cardinal Mindszenty, but in it Hungary. In addition to its role in govern­ the Church received governmen.- permission, ment, the Church maintained and operated, Revolution in 1956. In this period of time, many bishops, leading Catholic priests and first, to appoint five bishops to vacant sees before 1945, about 75% of the elementary and one bishop to an archbishopric see; schools in the Hungarian country-side; laymen were condemned or forced into exile. Almost all members of the religious orders Second, to send few Hungarian priests to Benedictines, Cistercians, Dominicans, Fran­ Rome for higher ecclesiastical studies. ciscans, Piarists, Premontrarian Canons and were deported, compulsory religious instruc­ tion was abolished and all Catholic schools There were also some general promises Jesuits were responsible for an important made by the Kadar government about the part of Hungarian education and literature, were closed in 1949. Amid such circumstances and by means freedom of episcopal government, of priestly among them, first of all, the Jesuit Peter-Car­ ministry and of religious instruction of the dinal Pazmany, Archbishop of Esztergom in of shameless intimidation the Board of Hun­ garian Bishops was forced to sign an agree­ youth. The Vatican also succeeded in pre­ the 17th Century, one of the founders of venting the appointment of government­ Hungarian literary language and also the ment with the government on August 30, 1949. All religious orders were disbanded selected members of the Opus Pacis to dio­ founder of the Budapest University, estab­ cesan sees, a demand originally presented by lished in Nagyszombat in 1635. except the Benedictines, Franciscans and the Piarists and also the School Sisters of Kalo­ the regime. Before 1945 the Hungarian Catholic At the same time, the Vatican had to ac­ Church also possessed great wealth emanat­ csa each of which could maintain 2 high­ schools only. Altogether 8 highschools were knowledge the Budapest Government's veto­ ing from the donations of King Saint Ste­ power over the appointments of Roman phen of Hungary (997-1038) and was able to returned to the religious orders by agree­ ment, with the understanding, that only a Catholic prelates and accept the fact of op­ maintain numerous charitable, social and restricted number of religious teachers pressive government interference with and cultural institutions for the benefit of the handpicked by the government could be re­ full control of the day-to-day administration Hungarian people, using its own resources of the Church in Hungary. only. It could be safely said that the fate of tained for teaching; the rest of them had to Hungary and its Catholic Church were in­ find jobs in civ111an life, mostly in factories THE PRESENT separable during their entire history. and were forbidden to live in religious com­ Hoping for a betterment of the ecclesiasti­ munities. The government also assured a cal situation in Hungary, Hungarian Catho­ UNDER COMMUNIST RULE 1945-64 meager financial subsidy for the Church lics neither questioned nor objected to the The arrival of Soviet troops in 1945 made and-stopped the deportation of the reli­ 1964 Vatican rapproachment-effort with the radical changes in the life and social struc­ gious. Kadar-regime. They sincerely hoped for-but ture of Hungary. Although some contacts For these so-called "benefits" the bishops knowing thoroughly the marxist-leninist with the West survived until 1948, de facto a had to recognize the Communist regime, and mentality of the Kadar regime, they never totalitarian Communist regime has been in let priests take an oath of loyalty to the really expected-a significant success of the power since the arrival of the first Soviet Communist government. The Church was Vatican's new move. Unfortunately a pe­ military units to Hungary. Despite the fact also forced to give public support to the eco­ riod of almost 10 years has passed by and we that Latin-rite Hungarian Roman Catholics, nomic goals of the regime and to condemn are now compelled to conclude that this new with their small community of Byzantine­ anti Communist activities. But even this Vatican policy has proved to be a failure as rite Roman Catholic brethren, made up 70% was not enough for Rakosi. In May, 1951 far as Hungary is concerned. of the entire Hungarian population, the sit­ the government established the Office of What is the situation today in Hungary? uation of the Church became very precarious Church Affairs and this new Communist or­ The statement of Cardinal Mindszenty made indeed. When the greatest obstacle of Com­ ganization started appointing and transfer­ public on February 6, 1974 in Vienna gives a munist domination was successfully removed ring pastors and put censorship on the short summary of the fearful problems fac­ by the cruel torture and imprisonment of His chancery offices and on individual bishops ing the Hungarian Catholic Church: a bit Eminence, J6zsef Cardinal Mindszenty, Arch­ as well. In the very same year they sentenced more thorough discussion of it will make the bishop of Esztergom and Primate of Hungary Jozsef Grosz, Archbishop of Kalocsa, the Hungarian situation clearer and more visi­ in 1948-an event which shook the con­ ranking Hungarian prelate in the absence ble to everyone. science of the entire Chl·istian world-the of Cardinal Mindszenty to 15 years in prison. As far as the highest hierarchy is con­ Catholic Church in Hungary was at the This event led to a loyalty oath taken by all cerned, still only about half of the dioceses mercy of Soviet and Hungarian secret police bishops now understandably terrifled at the are directed by bishops or archbishops; the agents and exposed to the hatred and cruelty direct order of the government. other half are administered by apostolic ad­ of Matyas Rakosi, the Moscow-sent Commu­ Although in early 1956 Archbishop Grosz ministrators, some of them with the rank of nist boss of the Land of Saint Stephen. was freed and permitted to take charge of titular bishop, some of them without. In the The result of this tyrannical rule, first with the Hungarian hierarchy and after the out­ course of past decade "compromises" have Rakosi, later on, after the Hungarian Revolu­ break of the Hungarian Revolution, Cardinal been made in filling the vacant sees. These tion, with Janos Kadar, the new Moscow-sent Mindszenty was set free by the Hungarian compromises helped to appoint a few loyal boss of Hungary can be best measured by freedom fighters, the first years of the new and trustworthy priests in the vacant sees some statistics. puppet regime, established by a revengeful and successfully prevented the appointment Between 1945 and 1965 the number of or­ Red Army, were as bad as any year during of others who did not give up their member­ dained priests declined from 6,900 to 4,500. the Rakosi tyranny. Several bishops were ship in the Opus Pacis. Some candidates. Seminarians declined from 994 to about 300. imprisoned or deported again, and others however, did give up their memberships in Of the 2,459 monks and of the 7,525 nuns were prevented from functioning. The state's this Communist front-organization and in 1945 about 400 or less in all were left in strict prohibition against seminary recruit­ their resignations were quickly followed by 1965; less than the 5% of the original num­ ments, the complete state-control of semi­ high appointments from Rome. These com­ ber! nary education-where seminarians were promises made it possible for at least one Seminaries declined from 30 to 6, monas­ forced to have courses on dialectical materi­ member of the Hungarian Board of Bishops teries from 187 to 6, convents from 456 to 2. alism and on Marxism-Leninism, were signs to become a visible and rather loquacious Of all the 3,163 Church-related elementary of new and cruel deprivation of the Catholic representative of the Communist Govern­ schools and the 32 Church-related teachers' Church in Hungary. Religious instruction ment's propaganda machine. Unfortunately C:XX--2034-Part 24 32272 EXTENSIONS OF REMARKS September 23, 19 74 several higher-ups-not bishops-in the pres­ we still had 4,600 in 1965!). Out of the 3,663 1960's drew attention to a future need for ent-day Hungarian Catholic Church organi­ only 283 of the priests are under 30 and more new enriching capacity for nuclear fuel pur­ zation have the very same, rather dubious than 1700 are over 50. Today the average age poses, but the need was not imminent. Suf­ background, while sitting in important and of a Hungarian priest is near to 601 No ques­ ficent for those times were planning the cas­ responsible Church positions in Hungary. tion: if the strict state limitations in semi­ cade improvement and uprating programs, This is what Cardinal Mindszenty's state­ nary admissions are continued, it is evident, plus a modest investment in preproduction ment meant in saying, that the administra­ that within 10 or 15 years there wlll be a of enriched uranium to somewhat delay the tion of the Church in Hungary is in the further dramatic decline in the number of day when additional new capacity might be hands of administrators created and con­ ordained priests in Hungary. wanted. trolled by the Communist regime. By the start of the Nixon Administration The Hungarian Roman Catholic Church, in 1969 matters were coming into focus, but from an administrative point of view, is in still not clearly. It was predictable that new an even harder situation today, than ever TWO ESSAYS ON ENRICHING enriching capacity would be needed by the before. One of the great mistakes made by mid-1980's or earlier. Due to technical and some Js their belief, that putting even a loyal URANIUM economic unknowns, it seemed that planning, and good bishop at the helm of a Hungarian promoting, financing and building of initial diocese, can assure its successful operation. units might consume up to 10 years' lead Far from it. The suffocating presence and HON. CRAIG HOSMER time. That still left opportunities for study interference of the Office of Church Af­ OF CALIFORNIA and decision making. Yet, with no more than fairs run by atheists and Communist party IN THE HOUSE OF REPRESENTATIVES an offhand look at the situation, Nixon's members, make it totally impossible even Thursday, September 19, 1974 spokesman early and often announced a pol­ today. Not only are the bishops totally in­ icy that "the next increment of enrichment timidated by the direct pressure of the State, Mr. HOSMER. Mr. Speaker, uranium capacity shall be supplied by private enter­ not only were they forced to "elect" as the is the fuel used by nuclear power re­ prise." Board of Bishops' secretary the Government­ actors. But uranium is not economically Their policy did not prove durable. It was propagandist bishop I mentioned before, but not based on thoughtful study, knowledge they have to endure the omnipresence of the useable as nuclear fuel in its natural and reasoned analysis. It ignored the need for Office of Church Affairs on all levels of state in which the content of its fission­ a bridge to fac111tate a transition from gov­ Church administration. able U235 isotopes amounts to only about ernment enterprise to priva.te enterprise. The Communist State, namely, not only 0.7 percent. It is necessary, by physical This omission was tacitly admitted during puts a strong censorship on the chancery processes, to boost that content to 2 to 3 the Nixon Administration's final days when offices and on the individual bishops' private percent for use as light water reactor the Centrifuge Demonstration program was correspondence as well, but through the fuel. This process is known as "enrich­ at last outlined to encourage industry by Office of Church Affairs it maintains a veto­ ing uranium." offering, without defining, some "assurance power over appointments of new pastors, of supply" and some cash "assistance" to transfer requests, disciplinary actions or con­ The Atomic Energy Commission's those who would enter the enriching game. siderations of retirement applications. This, uranium enriching capacity, built in early Unfortunately the scheme only nibbles at of course, results only in what could be called days to fully enrich uranium to make aiding and encouraging the construction of an anti-selective process. If a pastor is liked, atomic bombs, has more recently been no more than six small centrifuge demon­ can influence people, is honest, modest and put to work instead to partially enrich­ stratton plants. AEC's hope seems to be that lives a morally impeccable priestly life, his ing it for use as nuclear fuel. In little demonstration plants owners on their own chances of landing in a far-away country­ more than the leadtime it takes to build will be able to expand their 100-300 ton parish attended only by a few score elderly demonstration facilities to an economic size people are very good indeed. If, on the other additional new capacity, that of the of around 3 million annual separative work hand, a priest has a rather bad reputation, AEC's existing plants will become fully units of capacity. Separative work is the ef­ he may well soon be the pastor of one of the utilized by expanding domestic and over­ fort needed to enrich uranium above its nat­ best parishes in Budapest. There are many seas nuclear utilities who have come to ural (.7%) U235 content for use as nuclear instances which make this allegation a well­ depend on the United States for their fuel. It is measured in arbitrarily defined proven fact. As Cardinal Mindszenty stated enriched nuclear fuel. units. in his February 6, 1974 message: the As we thus face a need to expand our AEC's plans for aid to priv'ate industry's Church is not free today in Hungary. It is in enriching capacity we must rather quick­ gaseous diffusion plants are even more spar­ chains and is being humiliated day after day tan, but no less ambiguous. To the Uranium by an atheistic, totalitarian regime. ly resolve the question of who should do Enrichment Associates who want to build a The seminaries are also in a very deplor­ it, Government enterprise or private en­ 9 million swu plant, no cash is offered, only able situation. Instead of the original 30, only terprise, and get about the business. a vague "assurance of supply" of separative 6 regular seminaries are now in operation. In accordance with the popular view work for UEA's customers in case the plant According to the latest reports, there are that it would be better for private enter­ is delayed or fails to function at planned about 300 seminarians permitted by the prise to assume thin responsibility, I have capacity. Office of Church Affairs to be prepared for written and distributed to the nuclear In either case, the Commission intends to priesthood, and about 40 to 45 seminarians recoup the cost of its aid by a suitable boost are ordained as priests every year. (As a small power fraternity two essays suggesting in charges for separative work. In addition, comparison: in 1938 we had about 2000 how we might go about it in a timely and AEC would like to "normalize" the climate seminarians and ordained 230 to 240 young effective manner. The essays are titled in which the uranium enrichment industry priests a year.) And this is not the result of "Bridging the Gap" and "An Exercise in will operate by pricing its enriching services a lack of priestly vocations: not at all! As al­ Aidsmanship." They were mailed to in­ on a commercial scale rather than upon the ways in a desperate situation, as now in terested parties on September 9 and 16. current cost recovery basis. Hungary, the grace of the Holy Spirit is fiow­ The essays as they have subsequently Neither the Demonstration proposal nor lng freely among young Hungarians and in the UEA proposal stems from a sound evalu­ the first decade of the Communist terror we been edited and revised are set forth ation of the amount or kind of aid that had more applications for admission to semi­ below: might encourage enterprisers to build en­ naries than ever before. The reason for the ESSAY No. 1: BRIDGING THE GAP riching plants or manufacturers to incur decline is simply the "numerus clausus" or The United States has yet to make a heavy front end costs for production lines closed number of seminary admissions, a reasoned, knowledgeable and long-range ex­ to make components for them. AEC expects limit imposed not by Church authorities, but amination of where its national interests lie electric utilities to acknowledge their self-in­ by the Communist officials of the Office of respecting the future structure of the urani­ terest in having a supply of nuclear fuel by Church Affairs. And whtle the admissions um enrichment industry. Therefore, piece­ paying a considerable premium for separa­ are limited to a very small number among meal efforts to move away from total govern­ tive work out of demonstration plants from the many who apply, according to very re­ mental responsiblllty for enriching services, which full scale facilities would evolve. But liable reports those applicants, who are sent such as the recently announced Demonstra­ the utilities are in a sorry business state. Ad­ by the Government-youngsters with Party tion Centrifuge Enriching Facilities Program, ditionally, they have little fundLS left for that or secret police connections-have to be ac­ kind of thing following AEC's recent passing cepted by the seminary. These characters are likely to fall for lack of proper economic of the hat for millions to carry forward its serve as informers for the Government and and philosophical underpinnings. LMFBR demonstration program. for the pollee and also form a reliable nu­ Inquiry into these subjects was premature AEC also expects the entrepreneurs and cleus-reliable from the point of view of the in the 1950's when the Atomic Energy Com­ component manufacturers to put in some­ Communist Party-in the new generation of mission's enriching complex was completed, thing extra before it will discuss an amount Roman Catholic priests. but operating at only a fraction of capacity of cash it would consider contributing to a All of this has resulted in the biological because the invention of the H-bomb had centrifuge demonstration plant. But these aging of the Hungarian clergy. According to drastically reduced requirements for enriched people already have stretched themselves to the latest report there are only 3,663 Catholic uranium for A-bombs. The emergence of a the limit to make a decision to move for­ priests in Hungary (please recall the fact that viable nuclear power industry during the ward. It seems unrealistic to expect them al- September 23, 1974 EXTENSIONS OF REMARKS 32273 so to put something extra in the pot for the million swu's on hand by 1982, the date AEC nuclear fuel. Nor can plant owners risk be­ privilege of running technological and eco­ has fixed for new capacity requirements. This ing without revenues they need to pay back nomic risks to pioneer a new industry. is a physically attainable figure according creditors and investors. In fact, they can­ Such details, and, in fact, the structuring to the AEC projections of its preproduction not finance their plants until this risk is of the uranium industry in the highest na­ capabilities recently furnished JCAE. removed. An impasse between the two has tional interest, cannot be determined until However, attaining preproduction levels been created by the plant owners' effort to a consensus obtains as to what that interest of that magnitude might depend upon re­ shift the risk by proposing a contract requir­ really is. Is it federal expansion of the exist­ ceipt of AEC's expected power deliveries and ing utilities to pay whether or not they get ing governmental enriching complex to me~t upon the availability of more feed material their separative work. aU future needs? Is it immediate and to1fal than currently anticipated, depending on Until enough new enriching plants are transfer of the entire industry to private when the preproduction campaign is started. built to resolve the technological and eco­ industry? Or, is it something between these Boosting the stockpile above the 38 million nomic unknowns underlying this impasse, a extremes? Testimony given during the year­ swu figure in order to offer new private en­ program should be adopted to lift these risks long, three-phase hearings of the Joint Com­ riching enterprises really meaningful "assist­ from utilities and plant owners alike. This mittee on Atomic Energy rejected both ex­ ance'" in addition to "assurance of supply" can be done easily by accumulating a suit­ tremes, but it failed to indicate clearly just would necessitate deliberately aggressive in­ able stockpile of preproduced enriched where between them the national interest vestments in both power and feed material. unranium from AEC enriching plants which lies. These are justified because aid in the form will otherwise be operating at less than ca­ My own feeling is that it lies in deliberate of preproduction can keep the new firms in pacity until around the end of 1982. movement toward a predominately private business. It might be preferable to aid in A second private enterprise barrier, peculiar industry structure, but still retaining gov­ the form of cash which only comforts their to the centrifuges, is the heavy front end ernmental responsibility for a few appropri­ creditors. This ought to be looked into. ate functions. cost involved in setting up a new industry. But AEC's present management is limited It will fall on plant owners directly and in­ For example, there is a continuing need for by annual budgets and a cautiously bureau­ the state to control its sources of enriched directly via front end costs for putting in cratic outlook. It is difficult to imagine AEC new production lines that component sup­ material for nuclear weapons and naval re­ becoming aroused and inspired enough to actors. Should this need dissipate, then gov­ pliers will be passing upward. To win the ob­ take on an aggressive preproduction program jective of bringing such plants Into being un­ ernment stm must retain a lengthy re­ of such size. Yet it is needed because the sponsibility to dispose of its huge enriched der private sponsorship, reasonable cash "as­ prosperity of the utility business and millions uranium stockpile in an orderly way, so as sistance" to overcome this hurdle is worth­ of people and businesses throughout the while. This "assistance" also can be readily not to bankrupt private enrichers. There land who use electricity depends on adequate will be a growing demand for fully enriched managed, along with the program for "assur­ supplies of nuclear fuel. ance of supply." uranium fuel for high temperature gas cool­ Such adequacy can be assured only by the ed reactors and precautions against diver­ success of the new enriching enterprises who ASSURANCE OF SUPPLY sion of this potential weapons material from would supply the new nuclear fuel demands. The 9 million swu diffusion plant pro­ peaceful hands indicates a need to keep its posed by Uranulm Enrichment Associates production as a government function. In turn, the success of these enterprises will depend heavily upon the existence of a size­ ought to dispel the engineering and economic Government may also be needed to buffer able enough preproduction stockpile to give unknowns for that technology. For the cen­ the emerging private industry against risks trifuges, it is safe to assume that six 3 mil­ of instant technological obsolescence from them "assistance" during their early years in addition to affording the utilities "assur­ lion swu plants will do the same job. AEC new isotope separation techniques such as will be supporting its own 15 million swu laser developments. And, most certainly, gov­ ance of supply" of their nuclear fuel. Thus it is apparent that very sound man­ stockpile for flywheel and contingency pur­ ernment will be needed for some time to af­ poses. With the probable avallab111ty of that ford the help in the form of "assurance of agement and very certain financial proce­ dures for the AEC's enriching complex must in mind during an emergency, preproduction supply" which even AEC finally has con­ of 27 million swu's a year's planned produc­ ceded is necessary for the emergence of pri­ be insisted upon. Although sound manage­ ment characterizes the AEC today, under tion of the seven new private plants, seems vate enrichment enterprises. Inquiry will ample to "assure" the fuel supply of custom· also show government must be a factor to several administrations sound management has not been a notable characteristic of the ers and revenues of owners of new plants effectuate the "assistance" which AEC simi­ running into trouble. larly concedes private industry should have higher ups from whom AEC takes its orders. for the transition. Even within AEC, as its business and burdens The risk of total failure of these plants is not regarded as likely and not here "assured" The Commission has not revealed how expand, the fragmentation of enrichment much "assurance of supply" or how much responsibility between loosely coordinated against. That magnitude of failure would cash "assistance" it will provide and, be­ offices for part time attention .could create have national consequences calling for cause it stlll operates under OMB's current difficulties. prompt Federal intervention with a mini­ policy of getting by on the cheap, it is un­ But as serious as organization difficulties Manhattan Project. likely to do so. Therefore, I offer my own may be, they are small in comparison to Exercise A, set forth in Table 1, is based on estimates in order to begin quantifying these AEC's problem of getting adequate funding one of AEC's alternate operating plans. It tasks. for its enrichment activities via the animal is well within the physical capab111ties of its Since it is unrealistic to expect beggarly budgeting, authorization and appropria­ complex. The Exercise shows that a 27 mlllion assistance to six, small 100,000 to 300,000 tions route. In the critical years between now swu "assurance of supply" stockpile can be swu centrifuge plants to suffice to get that and 1982, when aggressive programs for built up and worked off for a surcharge to power and feed material should be pursued, AEC customers of less than $1/swu. But to industry on its feet, I will assume that "as­ do so demands quick and decisive adoption of surance CYf supply" is needed for all six plants the entire system could be shattered by on a full scale of 3 million swu's each, a to­ the stroke of some Budget Director's red an "assurance" program and, from begin­ tal of 18 million swu's. The corresponding pen. If it is, there will be no nuclear fuel ning to end, its aggressive operation and figure for UEA's diffusion plant is 9 million and there will be no transition to private zealous financing. Only with these charac­ swu's. enriching enterprises. teristics can such a program create and maintain credible "assurance of supply". Probably the worst that could happen to ·Moreover, if the ERDA reorganization comes about and enriching activities are These characteristics do not mark AEC's the UEA plant is a delay of 2 years, losing 18 present decision making mechanisms and million swu•s production. But, since there buried in a strange corner of this newborn is no more than a 50% chance for a delay bureaucracy, few people expect much more financing resources. Prompt restructuring of of that length, it should be safe to "assure" than disaster for the enrichment program. the government's enriching activities to in­ against no more than a single year's loss of All of which indicates a need to get urani­ corporate them is essentiaL 9 million swu's. um enrichment under certain controls and ASSISTANCE Less is known about centrifuge technology. adequate financing procedures. So far no Exercise B, set forth in Table 2, is based Still, probably a two-year delay is the worst suggestion heard by the JCAE other than on an AEC operating plan which preproduces that could be expected and they will be that for a United States Enrichment Cor­ an extra 12.4 million swu, changes tails as­ coming on line over a 3-4 year period. This poration promises this accomplishment. says, and buy 21,000 short tons of added indicates a need for, say, an 18 million swu ESSAY NO. 2: AN EXERCISE IN AIDSliiiANSHIP natural uranium feed. The new centrifuge stockpile to "assure supply" for customers plants would get preproduction at its cost of CYf that six plants. According to these as­ This essay explores means to remove bar­ about $56/swu and allowed to market it at sumptions, UEA and the centrifuges to­ riers to private industry assuming responsi­ the commercial price, say $80/swu, thus be­ gether will require a 27 million swu prepro­ bllity for new United States uranium enrich­ ing "assisted" by the $24 differential. Against duction stockpile for "a,ssurance of supply" ing needs in 1982 and thereafter when the an approximate $1 billion investment for a 3 purposes. Add to that AEC's own need for a demand for nuclear fuel will begin to exceed mlllion swu plant, the scheme nets less than plant inventory of some 5 mlllion swu's and AEC's ability to supply it. $54 million in "assistance". It is no bargain. a contingency stockpile of about 10 million One barrier is the chance that new en­ The most efficient way to raise money to swu's. riching plants will be delayed coming on "assist" these new plants is by the straight­ Together AEC, UEA and the centrifuges will line or fail to operate at expected capacities. forward addition of a surcharge to AEC thus need a preproduction stockpile of 42 Utilities cannot risk being without needed sales. Over the 1975-1987 operating period of 32274 EXTENSIONS OF REMARKS September 23, 1974 my hypothetical "Assurance of Supply"/"As­ part or all of the "assurance" stockpile. cumulated for "assurance of supply" for the sistance" Program, AEC will perform about These swu's would come at the regular $50 UEA plant will, in 1983, go either physically 285 milllon swu's of enriching services. The production cost rather than the $30 incre­ to UEA's utllity customers lf the plant falls "assistance" value to each of the six new mental cost. Another consideration 1s that to get on line, or if it succeeds, AEC will plants of a $1.00 boost in swu charge is $47.5 the government's complex must have feed reduce its 1983 production by 9 million swu's mlllion, calculated as follows: to work on and the utllities wlll have to de­ to effect the cutback. The 18 million swu's 285 X $1 =$285/6=$47.50 liver it according to contract schedules, ir­ accumulated to "assure supply" for customers Thus, a $5 surcharge wlll garner $237.5 m11- respective of their delayed need for separa­ of the 6 centrifuge plants wlll be worked off Uon in aid for each new plant, a sum likely tive work. as these plants are assumed to be coming to far exceed all the conceivable front end How would the $30/$50 swu differential be on line to meet load growth, i.e. 3 million costs of getting this new industry on its fairly adjusted? How should the utilities' swu in 1983, 6 million each in 1984 and 1985, burden for carrying charges on the feed be and the final 3 million in 1986. feet. eased, if at all? THE REAL WORLD Thereupon the total cost of thls "assurance These, and a host of other unknowns that of supply" program may be calculated as Exercises A and B are only hypotheses the future will reveal, will have to be re­ follows: based on assumptions. In the real world, solved by whoever is in charge of the U.S. actual circumstances such as these must be government's enriching activities. This must dealt with: be done aggressively in a financially respon­ Stockpile Year's carrying We must stop thinking in terms of "AEC" sible manner, promptly, sk1llfully, intelli­ size in charge, and start thinking in terms of "the govern­ gently, fiexiby, effectively, and always with 106 swu 's 10 percent ment" as it may be ERDA or USEC or an­ the overall national interest foremost in other authority which soon takes over re­ mind. 1983______18 $84.4 sponsib111ty for U.S. enriching activities and All of which serves to emphasize what was 1984______15 70.1 1985_------9 42. 2 stockp11es. earlier written, to wit: "USEC ••• is still 1986______3 14.1 SCuttling the government's split-tans op­ the only game in town effecting the restruc­ 1987------_.; eration is inevitable and the sooner the ture of government enriching activities Investment through 1982______1, 265.1 better for the "assurance" program and the requisite for a credible "assurance of supply" TotaL ______------health of the mining, milling and conversion program." 1, 475.9 link of the nuclear fuel chain. TABLE 1 The government probably can find legal ways to boost its swu charges toward com­ EXERCISE A AEC'S 1975-1982 SEPARATIVE WORK PRODUCTION mercial levels. It's a good idea to start mov­ ("Assurance of Supply" 27 million swu) ing nearer to reallty and away from extant Units Investment Average{swu Alice-in-Wonderland swu pricing criteria. Exercise A shows that AEC Plant 3% is not 10 percent per year For customers ______126.7 $6,335.0 $50.000000 needed. Accordingly, I am dropping· author­ carrying For preproduction______27 1, 475.9 54.662962 ity for any new government enriching capac­ Preproduc­ Incremental charge, ity from USEC. tion, cost at 8 yrto TotaL______153.7 7, 810.9 50. 819128 USEC, now better than ever, is still the 1()e swu $30,1Qa 1 yr only game in town effecting the restructure NOTEs: (1) Exercise A is based on AEC's of government enriching activities requisite 1975 ______5.1 $153 122.4 alternative operating Plan 2 in Table 3 ap­ for a. credible "assurance of supply" program. 1976_ ------7.1 213 149. 1 pended to George F. Quinn's testimony sub­ 1977------2. 7 81 48.6 Other reallties also must be coped with, 1978 ______4. 8 144 72.0 mitted to JCAE June 25, 1974, except that it such a.s the fact that utllities are slowing 1979 ______1980 ______3. 2 96 38.4 requires 1.5 million swu preproduction in down their nuclear programs. By 1982, in re­ 1. 5 45 13.5 1982 vice .4 million. lation to what they have contracted for, 1981.------1.1 32 6.6 1982 ______1.5 45 (2) The cumulative stockpile achieved there is a likely delay in nuclear fuel de­ 4. 5 in 1982 by all AEC preproduction is 42 mil­ mand aggregation 30 to 40 million swu's of TotaL ____ 27.0 809 455. 1 separate work. Dealing with the responsib111- lion swu's of which, in this Exercise, 27 ties and seizing the opportunities presented mlllion is allocated to "assurance of supply" by that, and any other unexpected nuclear This preproduction stockpile of 27 m1111on and 15 mUllan to AEC's own purposes, i.e., fuel developments seem quite beyond the swu's cost $1265.1 mlllion by the end of year 5 million flywheel and 10 mill1on for con­ present AEC's room for maneuvering. 1982 ($810 for enriching and $455.1 for carry­ tingencies. The carrying charge for this 15 ing charges) • Ut111ties bound to contracts for the delayed million 1s included in the assumed $50/swu separative work will be hard pressed to take The scheme for working off' this stockpile charge to AEC's regular customers. and pay for it on schedule, only to bear is based on EEl's estimate that UEA's 9 mil­ (3) The assumed cost of $50/swu for reg­ added carrying charges unt11 they start us­ lion swu plant will handle load growth for ular production is arbitrary and the $30/swu ing it. A scheme to somewhat relieve their 1% years after 1982 and that thereafter the incremental cost for preproduction 1s based burden could be built around the govern­ new capacity requirement wtll average 6 mil­ on $2.50 for labor and $27.50 power at 11 ment picking up this excess for stockpile lion swu's annually. mllls. Any 1 mill change in power cost effects purposes in lieu of otherwise preproducing This means that the 9 million swu's ac- about a $2.50 change in swu cost.

TABLE 2 EXERCISE B.-"ASSURANCE OF SUPPLY" 27 MILLION SWU-"ASSISTANCE" 12.4 Mll,LION SWU

10 percent 10 percent 10 percent 10 percent per year Feed and per year per year Feed and per year Prepro- carrying conversion carrying Prepro- carrying conversion carrying duction, Cost at $30 charge, 100 (short Cost charge, duction, Cost at $30 charge, 106 (short Cost charge, lQ&swu (106$) 8 yr to 1 yr tons) at $20/lb 7 yr to 1 yr toeswu (lOC$) 8 yr to 1 yr tons) at $20/lb 7 yr to 1 yr

153.6 _____ ;:;-..;:::: ______1980 ______1975 __ .______.; 6.4 192 3. 7 111 33.3 5.1 204 61.2 1976 ______42.0 1981______3.5 1977 ______..; 7.1 213 149.1 1.5 60 105 21.0 4.1 164 32.8 4.5 135 81.0 7.5 300 180.0 1982 ______1.7 51 5.1 .8 32 3.2 1978 ______.; 6.8 204 102.0 11.2 448 224.0 1979 ______,. 5.7 171 68.4 8.3 332 132.8 TotaL __ 39.4 1,182 613.5 38.4 1, 540 676.

This preproduction stockpile of 39.4 roll­ new capacity requirement will average 6 mil­ It is arbitrarily assumed that the 12.4 swu's lion swu's cost $2471.5 mill1on by the end. lion swu's annually. accumulated to "assist" the centrifuge en­ of 1982 (for enriching $1182, for carrying This means that the 9 mill·ion swu's ac­ trepreneurs will be worked down a.s follows: charge on enriching $613.5, and for carrying cumulated for "assurance of supply" for the .4 in 1982, and 3 million during each of the charges on feed purchases $676. The cost of UEA plant wUl, 1n 1983, go either physically years 1983, 1984, 1986 and 1987. feed is not included in the total since this to UEA's utillty customers if the plant falls Thus the 5 year campaign to dispose of exercise is solely for the purpose of deter­ to get on line, or if it succeeds, AEC would the combined "assurance of supply" and "as­ mining swu costs. Feed cost-equivalent to reduce its 1983 production by 9 million swu's sistance" stockpiles would be as follows: 9.4 $39.086284 for each swu-would be recovered to effect the cutback. The 18 million swu's m1llion in 1983, 6 million in 1984, 9 million from customers at the time enriched ura­ accumulated to "assure supply" for custom­ nium 1s delivered.) ers of the 6 centrifuge plants would be each in 1985 and 1986, and 3 m1llion in 1987. The scheme for working off this stockpile worked off as these plants are assumed to Total: 39.4 million. is based on EEl's estimate that UEA's 9 mil­ coming on line to meet load growth, i.e. 3 Thereupon the total cost of the "assurance" lion swu plant will handle load growth for million swu in 1983, 6 million each in 1984 and "assistance" programs may be calculated 1 Y2 years after 1982 and that thereafter the and 1985, and the final 3 million in 1986. as follows: September 23, 1974 EXTENSIONS OF REMARKS 32275 One must be cautious not to equate First, I should reaffirm the general observa­ Year's Stockpile carrying bureaucratic changes with real substan­ tion in that letter regarding our obligation size in charge tive changes in foreign policy. Neverthe­ to promote respect for and observance of 10 o swu's 10 percent less I am hopeful that the Department human rights and fundamental freedoms, the complexities of implementation and my is ~aking these changes in good faith view that cutting off assistance is not neces­ 1983.------30 188. 2 and that these bureaucratic changes will 1984. ------24 150.5 sarily the most effective and appropriate re­ 1985 ______------15 94. 1 assist in developing a U.S. foreign policy sponse to deter violations. 1986 ______------6 37. 7 consistent with our moral and demo­ In my earlier letter, I informed you t hat }~~~stmentthrougii-f9si: ~======------z; 471 ~ 5 cratic traditions. we had sent a cable to our Embassies in East The material follows: Asian aid-recipient count ries requesting TotaL __ ---- ____ ----- __ ------2, 942 WASHINGTON, D.C. J uly 10, 1974. them t o t ransmit the text of section 32 to the Hon . ROBERT S. INGERSOLL, governments of t hose countries and explai?­ Depu ty Secretary of State, t he seriousness with which we reg.ard th1s AEC'S 1975-1982 SEPARATIVE WORK PRODUCTION Department of State, section. A similar cable has now gone to our Washington, D.C. Embassies in aid-recipient countries in the In vest- Average per DEAR AMBASSADOR INGERSOLL: I appreciated other geographic areas. Units ment swu very much having the opportunity to meet we have not yet received reports from all with you and Governor Holton and discuss posts. However, the pertinent East Asian Fo r customers ______126. 7 $ii, 335 $50. 000000 the task of raising the priority given to post s inform us that Foreign Ministry offi­ For preproducti on _____ 39.4 2, 942 74. 670050 human rights in U.S. foreign policy. cials have in e.ach case been given a copy of section 32 with background explanation. The TotaL ______9, 277 Last fall, I know you are aware, the ~ub­ 166. 1 55. 851896 committee on International Organizat10ns reactions of the government officials to whom and Movements held a series of 15 hearings the approaches were made, of course, were NoTES: (1) Exercise B is based on AEC's on this subject and adopted a report with preliminary and varied. However, the pattern alternative operating Plan 1A in Table 5 29 recommendations relating to U.S. foreign of responses indicates .a clear awareness of appended to George F. Quinn's testimony policy and human rights. This spring hear­ our concern. submitted to JCAE June 25, 1974. ings have continued including a serie~ on Most host governments expressed apprecia­ (2) See notes (2) and (3) to Exercise A human rights in Chile and another review­ tion for this notification and, in some in­ for explanations of AEC's responsibility for ing the U.S. position on issues before the stances, requested additional information. 15 million swu's of the stockpile and assump­ U.N. Commission on Human Rights. In several cases, the difficulty of defining the tions re swu costs. The assumed average The Subcommittee concluded in its re­ term "political prisoners" was cited, a diffi­ feed and conversion cost equivalent to $20/ 1b port that "human rights in foreign poli~y culty which earlier had been noted in Con­ gressional debate on this legislation. U30 8 is a best guess. is both morally imperative and practi­ cally necessary". It noted, however, that "the With specific reference to Korea, with re­ structure of the bureaucracy in the Depart­ spect to which I promised in my June 27 ment of State is not adequate for giving letter to keep you informed, we have cabled weight to human rights considerations". The our Embassy posing very specific and detailed STATE DEPARTMENT STRENGTH­ questions about the recent trials, requesting ENS ITS ORGANIZATION IN HU­ Subcommittee recommended strengthening the human rights staffing in the Interna­ as much information as may be available. MAN RIGHTS FIELD t ional Organizations bureau, appointment As you may know, these trials are not con­ of an assistant Legal Advisor on human ducted in open session, so that Embassy HON. DONALD M. FRASER rights and appointment of a human rights officers have been unable to attend. However, officer in each regional bureau. we expect to have received factual informa­ OF MINNESOTA As my letter of June 27th to Secretary Kis­ tion prior to the hearing which Mr. Fraser IN THE HOUSE OF REPRESENTATIVES singer (a copy of which was sent to you) in­ plans to conduct on July 30 on human rights in Korea. Monday, September 23, 1974 dicates I have been pleased with the re­ sponse' of the Department in implementing At this point, our experience under sec­ Mr. FRASER. Mr. Speaker, I submit some of the organizational changes recom­ tion 32 of the Foreign Assistance Act of 1973 for the RECORD correspondence which mended by the Subcommittee. permits us to conclude that it would be In addition to these changes, however, the wise, at least provisionally, to ensure that Chairman MoRGAN and I have received reporting and review features such as are from Deputy Secretary of State Robert Department should have someone at the policy-making level who would ensure that growing up under that section are a con­ S. Ingersoll describing the administra­ human rights factors are given reasonable tinuing and permanent part of our fact tive measures the State Department has consideration. A special assistant on human finding and decision making pro~"esses with taken to give greater consideration to rights in the Deputy Secretary's office would respect to all countries. To this end through human rights factors in foreign policy fulfill that role. It would be his responsibil­ further instruction we will meld the special decisionmaking. ity to ensure thalt when decisions are being section 32 requirements of aid recipients with the general human rights require­ These measures are largely in re­ made with significant human rights im­ plications, the appropriate lmman rights of­ ments affecting all countries. sponse to congressional concern that We propose to use the facts collected and U.S. foreign policy often does not re:fiect ficers in the regional bureau, the Legal Ad­ visor's Office and the International Orga­ our evaluations of them to assure that the moral and democratic traditions nizations Bureau would participate in the human rights considerations are taken into which have been central to the origin making of those decisions. Human rights has account in the formulation of our foreign and development of our country. policy including our assistance programs. I not traditionally been considered an element am asking that early next year the geo­ In 1973 Congress expressed its con­ in the decision-making process. Consequent­ graphic bureaus and others concerned re­ cern through the adoption of section 32 ly, it is particularly necessary to have some­ port to me on significant human rights de­ of the Foreign Assistance Act which one with overall responsibility who could velopments, by country and by important states that economic and military assist­ oversee developments in human rights and international bodies, with their recom­ ance should be denied to any country decision-making in this area. mendations for any desirable modifications "which practices the internment of that I would greatly appreciate hearing from of policy, new steps or new procedures. By you after you have had an opportunity to then we will have received the second an­ country's citizens for political purposes." consider this suggestion. Also, the Subcommittee on Interna­ nual post reports and will have the benefit With best regards, of another year's experience with the United tional Organizations and Movements of Sincerely yours, Nations and Inter-American Human Rights the House Foreign Affairs Committee DONALD M. FRASER, Commissions. Such bureau reports should adopted a report in March of this year Chairman, Subcommi ttee on Interna­ be an important indication of how we are that w·ged the Department of State to tional Organizations and Movements. doing at the international level in seeking "treat human rights factors as a regular to discharge our obligation to promote re­ part of U.S. foreign policy decisionmak­ JULY 28, 1974. spect for and observance of human rights ing!' 1 The subcommittee recommended Hon. THOMAS E. MORGAN, and fundamental freedoms. Chairman, Foreign Affairs Committee, House We recognize that the foregoing involves that the Department strengthen its a very considerable amount of time and organization in the human rights field. of Representatives, Washi ngton, D.C. DEAR MR. CHAmMAN: This is to follow up effort. I realize that some additional or Many of the organizational changes rearranged manpower is required. We have recommended by the subcommittee have on my letter of June 27, in which I stated our now moved ahead in all geographic bureaus been accepted by the Department. intention to keep the Committee informed with the designation of a human rights concerning human rights matters, both gen­ officer. In addition to these officers and those erally with respect to section 32 of the For­ in the Bureau of International Organization 1 Human Rights in the World Commu­ eign Assistance Act and specifically in re­ :n i.ty: A Call for U.S. Leadership." Affairs and the Office of the Legal Adviser gard to Korea. who deal with human rights, I plan to have 32276 CONGRESSIONAL RECORD- SENATE September 24, 1974 an officer in my own office who can advise I appreciate your interest and assure you KT~TV CONTINUES THE FIGHT me regarding overall progress in these mat­ that I will continue to give my personal at­ AGAINST MD WITH LABOR DAY ters and ensure full consideration of human tention to the development of the most ef­ TELETHON rights factors in decision making. For the fective staffing we can devise. I wlll continue present, I have asked the Acting Legal Ad­ to keep you informed as we progress. viser to help me in this way. With best regards, As I said in my June 27 letter, I intend to Sincerely, HON. JAMES R. JONES continue to keep the Committee informed ROBERTS. INGERSOLL. OF OKLAHOMA concerning our thoughts and progress with respect to section 32 and human rights gen­ WASHINGTON, D.C., September 20, 1974. IN THE HOUSE OF REPRESENTATIVES erally, and specifically with respect to Korea. Hon. ROBERT S. INGERSOLL, Monday, September 23, 1974 I hope this update of my earlier letter will Deputy Secretary of State, Department of be helpful to the Committee. State, Washington, D.C. Mr. JONES of Oklahoma. Mr. Speaker, With best regards. DEAR SECRETARY INGERSOLL: Thank you for once again KTUL-TV in Tulsa has car­ Slncerely, your letter of August 14th concerning human ried the Jerry Lewis Labor Day Telethon ROBERT 8. INGERSOLL, rights in foreign policy. I have also read your Acting Secretary. letter of July 28th to Chairman Thomas E. for Muscular Dystrophy. Morgan concerning the same subject. This is the fifth consecutive year I am very pleased to learn that you have KT~ TV has performed this public THE DEPUTY SECRETARY OF STATE, undertaken responsibility for ensuring that Washington, D.C., August 14,1974. the Department gives full consideration of service, and I would like to commend Hon. DoNALD M. FRAsER, human rights factors in decision making, and them for their untiring effort. Chairman, Subcommittee on International that you intend to have an officer in your of­ As a result of the generosity of the Organizations and Movements, Washing­ fice assigned the above task. These decisions, residents of northeastern Oklahoma, ton, D.C. along with the appointment of human rights DEAR MR. CHAmMAN: Thank you for your officers in each of the regional bureaus, this year's MD Telethon raised over letter of July 10 concerning human rights in should provide the organizational framework $126,000. This represents a 33-percent foreign policy. As Governor Holton informed and staffing required to ensure that human increase over last year's total. you on July 26, we have now moved ahead in rights considerations are given full considera­ I was pleased to have participated in all geographic bureaus with the designation tion. of human rights officers. In addition to these Our moral and democratic traditions, I am this most worthwhile :fight against MD, officers and those in the Bureau of Interna­ convinced, have been a fundamental source and I thank Mr. Frank Brown, district tional Organization Affairs and the Office of of U.S. leadership in world affairs. Under your director of MD Associations of America, the Legal Adviser who deal with human leadership the above mentioned bureaucratic for inviting me to join in this Labor Day rights, I plan to have an officer in my own changes, should be effective in making our office who can advise me regarding overall foreign policy consistent with these tradi­ Telethon. progress in these rna tters and ensure full tions. The staff and management of KTUL­ consideration of human rights factors in Sincerely yours, TV deserve real credit for their dedica­ decision making. For the present, I have DONALD M. FRASER, asked the Acting Legal Adviser to help me Chairman, Subcommittee on Interna­ tion and commitment to ending the in this way. tional Organizations and Mc

SENATE-Tuesday, September 24, 1974

The Senate met at 10 a.m. and was U.S. SENATE, HUGH SCOTT: A GREAT LEADER called to order by Hon. HowARD M. METz­ PRESIDENT PRO TEMPORE, Washington, D.C., September 24,1974. Mr. MANSFIELD. Mr. President, today ENBAUM, a Senator from the State of marks the fifth anniversary of my dis­ Ohio. To the Senate: Being temporarily absent from the Sen­ tinguished, affable, and hard-working partner, Senator HuGH ScoTT of Penn­ PRAYER ate on official duties, I appoint Hon. How­ ARD M. METZENBAUM, a Senator from the State sylvania. Five years ago today, he as­ The Chaplain, the Reverend Edward of Ohio, to perform the duties of the Chair sumed the leadership of the Republican L. R. Elson, D.D., offered the following during my absence. Party in the Senate. During all those prayer: JAMES 0. EASTLAND, years, he has conducted himself with understanding of the needs of those he Our Father God, in whom we live and President pro tempore. leads and, more fundamentally, with an move and have our being, all the ways of Mr. METZENBAUM thereupon took appreciation of the needs of the Senate our need lead to Thy throne. Thou art the chair as Acting President pro tem­ as a whole, what it stands for, what it great and we are small. Thou art strong pore. should be, and where it is going. and we are weak. Thou art wise and we His has not been an easy task, because, are ignorant. Come to our waiting spirits just as among the Democrats, there is to bring a strength and wisdom above our THE JOURNAL also division among the Republicans. It own. When we know not what to ask, takes a man of great skill and ingenuity read our hearts and fill our needs. Mr. MANSFIELD. Mr. President, I ask to keep those who have elected him May the soul of this Nation respond to unanimous consent that the reading of leader working in cohesion and cooper­ the call for discipline and sacrifice and the Journal of the proceedings of Mon­ atively. Senator HuGH ScoTT has done mutual trust. Guide our leaders in the day, September 23, 1974, be dispensed that. ways of righteousness and truth, until, with. As far .as I am concerned, I want to say in obedience to Thy will, this Nation and The ACTU-:-G PRESIDENT pro tem­ that I have never worked with a better all nations come into the fullness of Thy pore. Without objection, it is so ordered. man than HuGH ScoTT, a man who rec­ kingdom. ognizes the fact that while there may be Through Jesus Christ our Lord. Amen. divisions, as there should be and as there will be, there are times when, in the COMMITTEE MEETINGS DURING interests of the Nation, we have to pull APPOINTMENT OF ACTING PRESI­ SENATE SESSION together for the common good. DENT PRO TEMPORE I have nothing but the highest admira­ Mr. MANSFIELD. Mr. President, I ask The PRESIDING OFFICER. The clerk tion and respect and, yes, even affection, will please read a communication to the unanimous consent that all committees for the distinguished Republican leader, Senate from the President pro tempore may be authorized to meet during the who has contributed so much to his State (Mr. EASTLAND). session of the Senate today. and country and who has done so much The legislative clerk read the following The ACTING PRESIDENT pro tem­ to bring about a better understanding of letter: pore. Without objection, it is so ordered. the Senate as an institution. ·