August 1, 1978 EXTENSIONS OF REMARKS 23765 -Page 23, immediately after line 19, insert -Page 23, immediately after line IS- insert -Page 23, immediately after line 19 insert the following new section: the following new section: the :flollowing new section: SEc. 510. Of the funds appropriated or SEc. 510. None of the funds appropriated or SEc. 510. None of the funds appropriated or made available pursuant to this Act, not made available pursuant to this Act shall be made available pursuant to this Act shall be more than $10,000,000 shall be used for for­ used to provide military assistance, inter­ used to provide military assistance, interna­ eign military credit sales and not more than national military education or training, or tional military education or training, or for­ $1,000,000 shall be used for international foreign military credit sales to the Govern­ eign military credit sales to the Government military education and training to the Gov­ ment of Zaire. of Thailand. ernment of the Republic of Korea. -Page 23, immediately after line 19 insert -Page 23, immediately after line 19 insert -Page 23, immediately after line 19 insert the following new section: the following new section: the following new section: SEc. 510. None of the funds appropriated or SEc. 510. None of the funds appropriated or SEc. 510. None of the funds appropriated made available pursuant to this Act shall be or made available pursuant to this Act shall made available pursuant to this Act shall be used to provide military assistance, inter­ used to provide military assistance, inter­ be used to provide military assistance, inter­ national military education or training, or national military education or training, or national military education or training, or foreign military credit sales to the Govern­ foreign military credit sales to the Govern­ foreign military credit sales to the Govern­ ment of the Republic of China (Taiwan). ment of Morocco. ment of the Philippines. -Page 23, immediately after line 19 insert -Page 23, immediately after line 19, insert the following new section: the following new section: H.R. 13635 SEc. 510. None of the funds appropriated or SEc. 510. None of the funds appropriated or By Mr. HILLIS: made available pursuant to this Act shall be made available pursuant to this Act may be used to provide military assistance, inter­ used to provide military assistance, inter­ -Page 50, beginning on line 6, strike out national military education or training, or national military education or training, or "(f) reimbursement" and au that follows foreign military credit sales to the Govern­ foreign military credit sales to the Govern­ through "or (g)" on line 10 and insert in lieu ment of Bolivia. ment of Indonesia. thereof "or (f)".

EXTENSIONS OF REMARKS HARTFORD MODEL FOR collapsed, streets sank, fires ravaged the tors, including quick steps to clear the rubble DISASTER RECOVERY heart of the city and 700 people perished. and launch an investigation by an engineer Hartford still remembers July 6, 1944, the of impeccable credentials. Strong support was day the tent of a visiting Ringling Brothers provided by the business community, espe­ HON. WILLIAM R. COTTER and Barnum and Bailey circus went up in cially Hartford's influential insurance com­ OF CONNECTICUT flames, killing 168 persons and injuring panies. From both the city administration hundreds more. and council came a strong dose of civic IN THE HOUSE OF REPRESENTATIVES Aside from the fortuitous lack of casual­ boosterism to avert a paralyzing "moaning Monday, July 31, 1978 ties, the disaster that struck Hartford at 4:19 and bemoaning" of Hartford's loss. a.m. last January 18 was unusual in another Oaken picked up on that theme within e Mr. COTTER. Mr. Speaker, I would respect. No one could blame it on a purely hours of the roof's collapse, announcing: like my colleagues to take note of a col­ accidental occurrence, some "act of God." "We're going to make it bigger and better­ umn in today's Washington Post by Neal The great roof's collapse was a direct result with a different kind of roof." The rebuilt Peirce, on Hartford's rapid recovery from of glaring design flaws and inadequate in­ coliseum is now planned for 14,500 instead of spection procedures by the people we de­ the present 10,500 seats. the disastrous collapse of the roof on the pend on so heavily for our health and safety The city's only real disappointment-and Civic Center coliseum last winter. in this age of supposed technological per­ it's fairly minor in the overall budget-has As a life long resident of Hartford, fection-architects, engineers and govern­ been the failure of the surrounding towns and the city's Congressman, I take pride ment inspectors. to contribute significantly toward a $100,000 in the way the town, and its officials, Totally unobstructed spectator view of coli­ suburban-aid fund to help Hartford through acted swiftly to work toward an even seum events had been the architects' goal in its hard time. "bigger and better" coliseum. designing a 4,455-piece steel lattice roof, 21 When any type of disaster hits a city, says feet deep and 366 by 300 feet long and wide, Oaken, it's essential for the city government, The article follows: supported by only four plyons near the out­ business and community leaders to move [From the Washington Post, July 31, 1978] side corners. decisively and in unison. "We had a pre­ THE HARTFORD MODEL FOR DISASTER RECOVERY But an independent engineering firm hired plan for emergencies and everyone responded (By Neal R. Peirce) to investigate the collapse found that the like clockwork." Other cities, Oaken suggests, roof had been a time bomb from the moment should do a simula·tion exercise of how they'd HARTFORD, CONN.-NO one who witnessed it was lifted into place in 1972-that "the respond to a disaster. The planning needs to the wreckage of the collapsed roof of this most severely overstressed members began identify economic and social power points in city's Civic Center Coliseum last winter will to bow out and fail on the day the lifting the community, "so that if one kind of a ever forget the sight. of the space truss [roof] began." The inves­ thing or another does occur, you know who The delicate steel-frame "space roof," de­ tigating engineer found that the "visually to pull together from the public and private signed to give the semblance of "floating" apparent" bending of steel trusses "should sector to formulate a quick course of action over spectators at sports and cultural events, have been a red flag" to inspecting parties emphasizing positives, reconstruction, a bet­ lay in ruin. Jagged shards of metal super­ of engineers, construction firms and the city ter way out of what was calamity." structure poked into the sky at awkward government. But planning has its limits, Oaken ac­ angles, the beams bent and twisted in But if Hartford showed how not to build knowledges. He sometimes wakes in the mid­ grotesque shapes as if they had been made a coliseum, it has now reversed course and dle of the night wondering if any of Hart­ of plastic rather than high-strength steel. is providin!?: a model of how a city recovers ford's recovery efforts would have succeeded The main structure of the roof lay in a sea of quickly and effectively from a disaster that if 5,000 or 10,000 people had been in the col­ snow, metal and concrete rubble on crushed could have sapped its civic strength and cen­ iseum the hour its roof came thundering spectator seats. ter-city economy for years to come. to the ground .• Not a soul died in the Hartford roof col­ The collapsed roof's wreckage has been lapse, but it was a narrow escape. Hours be­ cleared. Rebuilding plans are virtually com­ fore, 5,000 persons had watched a hockey plete; with a new (and more traditionally SALUTE TO DR. JOHN CHASE, VA game in the coliseum, blissfully unaware of designed) roof the coliseum should open for CHIEF MEDICAL DIRECTOR the disaster building above their heads. On business in the fall of 1979. Reconstruction other evenings, up to 10,500 people filled the financing plans. including strong assists from coliseum's seats. A less fortunate timing the state and federal governments, are al­ HON. RAY ROBERTS would in all likelihood have taken thousands most finished. Almost forgotten now are last OF TEXAS of lives, conceivably the worst peacetime January's dark forebodings of economic disaster in U.S. history. havoc following loss of downtown Hartford's IN THE HOUSE OF REPRESENTATIVES American cities have often endured disas­ prime people-drawer. If anything, the cen­ Tuesday, August 1, 1978 ters, and they have taken many forms. The ter-city renaissance has continued and Great Chicago Fire of 1871 consumed 17,450 accelerated. e Mr. ROBERTS. Mr. Speaker, July 28, buildings and exacted a death toll of 250. In What made the quick recovery possible? 1978. was the la.cst da:v in office for one of the 1906 San Francisco earthquake, buildings City Manager James Oaken lists several fac- the finest chief medical directors in the

Statements or insertions which are not spoken by the Member on the floor will be identified by the use of a "bullet" symbol, i.e., • 23766 EXTENSIONS OF REMARKS August 1, 1978 history of the Veterans' Administration. of my constituents and others have ap­ Soviet situation that I have re::!.d in re­ Dr. John Chase and Mrs. Chase will leave proached me asking for my help to in­ cent weeks was by Anthony Lewis in the the turmoil and pressures of Washington tercede on behalf of relatives of theirs New York Times, titled "Facing Soviet for their home State of Washington after in Romania, who were seeking to emi­ Reality." 4 years in one of the toughest and most grate to the United States. I took up It points out both the reasons why we demanding positions in Government. He these individual cases with Ambassador must continue to speak out for people served with unremitting distinction and Nicholae and his predecessor Ambassador like Ana toly Scharansky and the rea­ in all those years I never knew him to de­ Corneliu Bogdan. A substantial number sons we must view that whole struggle part from the reasoned, courteous man­ of these cases have been resolved with in perspective. ner with which he approached every in­ exit visas granted and the individuals I urge my colleagues who have not dividual and every difficult problem. coming to the United States. Both am­ done so to read the Anthony Lewis Physicians take an oath of service to bassadors have been highly cooperative column. those in their practice. Dr. Chase's prac­ and anxious to assist in each case. FACING SOVIET REALITY tice included more than 29 million Amer­ In the last few months, for example, (By Anthony Lewis) ican veterans. He seemed to weigh every I was notified that exit visas to come to When the Soviet Union behaves as it has proposal, no matter how complex the sci­ the United States were granted to 14 in­ in these last weeks, we are revolted. To con­ entific or mathematical data involved,· dividuals on whose behalf I had con­ vict a dissident of "treason" because he against one criterion: "Is it good for tacted the Romanian ambassador. talked to a foreign correspondent, to send veterans?" I still have a number of cases that have someone away for years because he wanted There were no easy decisions for Dr. not been resolved, which the ambassador to emigrate and hung a banner out his assures me is due to extensive bureau­ window-these are the acts of men who are Chase. He was responsible for managing in the deepest sense uncivilized. more than 125,000 hospital beds, process­ cratic delays. I have advised him that, Along with the feeling of revulsion there ing 2,250,000 applications for care from while I can understand the delays of is frustration. We want to do something veterans, giving appropriate care to 1,- bureaucracy-we certainly have our about the Soviet repression, but what will 287,000 inpatients and 16,410,000 out­ share here, I believe it is incumbent on actually have an effect? The answer is far patients. I need not tell my colleagues his government to help ease these bar­ from clear. But the recent trials should in the House the tremendous political riers to emigration to demonstrate its remind us of some basics in approaching commitment to the Helsinki agreements the Soviet system. pressures brought to bear on the VA's 1. It is an essentially lawless system, chief medical director. Every one of us and to be able to continue trading with the United States under MFN status. whose rulers evidently so doubt their own receive enough letters and telephone calls legitimacy that they fear the slightest from our districts about the medical As I have indicated in the past, as dissent. needs of veterans to appreciate that long as the Romanian Government con­ A particular fallacy, in dealing with the problem. But through it all Dr. Chase tinues to resolve such cases, I will con­ Soviets. is to analogize their society to ours. remained cool and collected. tinue to support granting MFN status. I Ancirew Young, in his blundering remark Sometimes in the heat of rhetoric here believe they have shown good faith in about political prisoners, was trying to offer meeting their commitments and hope hope that Soviet dissidents would succeed in the House we overlook the professional as American civil rights workers did. "Con­ managers of our Federal service who that we can see continued improvements in ther granting of exit visas. It is inter­ stant evolution is the rule everywhere," he keep their attention steadfastly on the said. But the analogy is false; the U.S .S.R. is issues, the numbers, the facts. We know esting to note that our own Immigration not subject to our dynamic social process. the needs of our constituents, the cli­ and Naturalization Service often takes 2. The Russians are highly resistant to mate of opinion back home. They know up to a year or longer to grant visas to open external pressure for change. the obstinance of facts and figures­ enter the United States. Americans who thought the U.S.S.R. their unfortunate tendency to take The Congress and the executive branch would ease Jewish emigration in return !or should continue to work with the Ro­ American trade concessions, including me, shapes and sizes contrary to the clothes know that the Jackson-Vanik Amendment we tailor for them here on the Hill. manian Government and its ambassador If did not work. Similarly, those of us who Dr. Chase was one of those rare indi­ on emigration and other matters. agreed with President CJarter's pressure for viduals who knew how to take off a little Romania continues to be willing to grant n.uman rights in the Soviet Union may worry here and add a little there until the VA the exit visas as requested by its citi­ now that Anatoly Scharansky and others medical program worked to the satisfac­ zens, we should consider extending the have paid a penalty. tion of the scientists and the legislature. MFN status for a period longer than 1 3. Nevertheless, the Soviet system has year. The uncertainties generated by re­ changed. That is an accomplishment of no small Mr. Scharanskv was convicted on what magnitude, one that requires an indi­ quiring renewal every year will jeopardize a number of trading deals that would by Western legal ·standards was no evidence, vidual of both intelligence and strong benefit not only Romania, but the United in a charade of a trial. But in Stalin's day character. he would have had no t rial; he would just All of us who deal with veterans and States as well. I believe this question have been shot or sent to a labor camp. The veterans affairs will greatly miss Dr. should be examined by the committee repression today is much more selective. We John Chase. We will miss his firm hand during the next year. surmise that there are forces inside the As long as good faith and good will Soviet ruling class favoring internal relaxa­ at the controls of the VA medical pro­ continues to exist on both sides, the tion, but that they are overridden from time gram. The veterans of America will miss governments and the peoples of both to time by tougher police elements. Now, him as a champion and friend. We will nations can gain from a strengthemng with a leadership transition looming, is one miss him as a kind and personable in­ of those times. of our economic and diplomatic ties. 1 dividuaL• From all this, it seems to me to follow that would rather know that the only argu­ the West has to take the long view. There ments we have with Romanians are over are no quick ways to bring about a more CONTINUATION MOST-FAVORED­ the fine points of a business contract and humane Soviet society. And if we let imme­ NATION STATUS FOR ROMANIA that we agree fully on the need to trade, diate outrage dete-rmine our policy, we may talk, and permit free movement of peo­ damage the long-term pm:sibility of affecting ple between our nations. It is out of such Soviet behavior. HON. MARIO BIAGGI economic and diplomatic intercourse For example, it has been suggested that OF NEW YORK the United States, in retaliation for the that world peace is made.e Scharansky affair, pull out of the 1980 IN THE HOUSE OF REPRESENTATIVES Olympics in Moscow. It is an appealing idea, Tuesday, August 1, 1978 advanced by good people-Mrs. Scharansky FACING SOVIET REALITY among others. But if thousands of foreign • Mr. BIAGGI. Mr. Speaker, at a time visitors come for the Olympics, may they not when we are considering continuation of be a modest force for opening up Soviet HON. PAUL SIMON society? the most-favored-nation status for trade OF ILLINOIS with Romania, I want to point out to my Again, when the Russians use crud-e tactics colleagues some recent experiences I have IN THE HOUSE OF REPRESENTATIVES against American correspondents, as they Tuesday, August 1, 1978 are now doing, U.S. retaliation against Soviet had with that country's ambassador, correspondents may be a necessary or un­ Nicholae Nicholae. a> Mr. SIMON. Mr. Speaker, one of the avoidable course. But if t he process ends Over the past 2 years, large numbers most perceptive articles on the whole with fewer reporters in each other's coun- August 1, 1978 EXTENSIONS OF REMARKS 23767 tries; would that serve America's interest or 41 regulatory agencies' budget at $4.8 signed for an economy with little or no the Soviet hard-liners? billion. Bureaucratic redtape-strangling inflation. But if current rates of inflation We have to be on guard against actions all businesses including energy produc­ persist, the existing tax laws will continue that satisfy an emotional desire to look to impose effective tax rates of more than 100 "tough" but that may actually hurt Ameri­ ers-runs up the rest of the bill. That percent on investment incomes. To make can interests. For instance, the United States includes $10 billion yearly to investors. matters even worse, the current tax laws im­ has strong reason-s, political and economic, to George H. Lawrence of the American ply that future tax rates will depend hap­ limit nuclear arms. If a good SALT agree­ Gas Association, who estimates U.S. hazardly on future rates of inflation and ment is attainable, it would make no sense natural gas consumption will increase therefore cannot be predicted at the time to say that we are going to wait for it until from 20 trillion cubi·c feet annually to 35 that investment decisions are being made. the Soviet Union becomes a democratic state. trillion cubic feet a year by the year These extremely high tax rates and the uncertainty about future tax rates are a The S·illiest idea, in my view, would be for 2000, the United States to declare the Helsinki estimates that four times the cur­ cloud that hangs over both the stock market agreement of 1975 void because the Soviets rent capital investment level will be and business investment decisions. Several have failed to comply with its provisions for needed to supply that gas. recent studies at the National Bureau o! freer movement of ideas and persons. Hel­ In other words, it will cost four times Economic Research that quantify the effect sinki turns what would otherwise be West­ as much capital to get less than twice as of inflation on the taxation of investment ern views into international obligations, and much gas. income and therefore on the incentive to we ought to go on demanding that the Jack M. Allen, president of the Inde­ investment show these dramatic effects. U.S.S.R. fulfill them. As The Economist of pendent Petroleum Association of Amer­ A SUBSTANTIAL INCREASE London put it last week, "There is no reason Inflation is particularly harsh on the taxa­ to let the Russians off . . . the Helsinki ica, says flatly-and I agree: Until people become convinced that energy tion of capital gains. Under current law, hook." when corporate stock or any other asset is The imperative for the West is to stay true is best provided by producers, and not by planners, the "energy crisis" will remain.e sold, a capital gains tax must be paid on the to its ideas. That sounds like an empty tactic entire difference between the selling price in a world of power, but in fact it is not. By and the original cost even though much of simply making clear that we oppose Soviet THE CASE FOR INDEXING the nominal gain only offsets a general rise repression, we sound a chord sympathetic to in the prices of consumer goods and services. much of mankind. Even the French Com­ CAPITAL GAINS Taxing nominal gains in this way very sub­ munist Party called on the Soviets recently stantially increases the effective tax rate on to end "all prosecutions and repressions." real price-adjusted gains. Indeed, many in­ Humane values do have power. HON. BILL ARCHER dividuals pay a substantial capital gains tax If President Carter does little more than OF TEXAS even though, when adjustment is made for make plain his sco.rn for the corruption of IN THE HOUSE OF REPRESENTATIVES the change in the price level, they act11ally law and truth in the Soviet trials, he will have done a good deal. But the duty is not Tuesday, August 1, 1978 receive less from their sale than they had originally paid. on the Government alone but on any private In a recent study at the National Bureau citizen or institution that deals with the • Mr. ARCHER. Mr. Speaker, late last Soviet Union. When an American company Thursday evening the Committee on of Economic Research, Joel Slemrod and I stands still for the abuse of its representa­ Ways and Means ordered favorably re­ measured the total excess taxation of cor­ tive in Moscow-as International Harvester ported H.R. 13511, the Revenue Act of porate stock capital gains caused by inflation seems to have done just now-the damage is and the extent to which this distortion dif­ 1978. As reported the bill contains an fers capriciously among individuals. We general. amendment which would eliminate Human beings matter: Tha.t is our belief, found that in 1973 individuals paid capital and we must stake our all upon it. So we purely inflationary increases for the pur·· gains tax on $4.6 billion of nominal capital must remember Anatoly Scharansky and poses of taxing gains. gains on corporate stock. When the costs of Yuri Orlov and Aleks::J.ndr Ginzburg, the Recent studies indicate that under cur­ these shares are adjusted for the increase in other human-rights campaigners just jailed; rent rates of inflation, our present tax the consumer price level since they were pur­ and Vladimir Slepak and Ida Nude!, Jews laws will impose confiscatory tax burdens chased, this gain becomes a loss of nearly $1 who wanted to emigrate. We can hope to billion. on capital and investment income. This The $4.6 billion of nominal capital gains move the Soviet Union only by degrees, but is not simply an assertion. It is fact. we must never accept tyranny.e resulted in a tax liability of $1.1 billion. The A recent study by Dr. Martin Feld­ tax liability on the real capital gains would stein, president of the National Bureau have been only $661 million. Inflation thus ENERGY ECONOMICS ISSUE of Economic Research as well as a lead­ raised tax liabilities by nearly $500 million, ing professor of economics at Harvard approximately doubling the overall effective tax rate on corporate stock capital gains. University, concludes that in 1973 in­ Hon. Theodore M. (Ted) Risenhoover dividual capital gains taxes were $1.1 Although adjusting for the price change OF OKLAHOMA reduces the gain at every income level, the billion on nominal capital gains of $4.6 effect of the price level correction is far from IN THE HOUSE OF REPRESENTATIVES billion. When gains are adjusted for in­ uniform. In particular, the mismeasurement Tuesday, August 1, 1978 creases in the consumer price level the of capital gains is most severe for taxpayers tax liability on the real gain would drop with incomes under $100,000. 0 Mr. RISENHOOVER. Mr. Speaker, the to $661 million. Stated more specifically, In the highest income cla~s, there is little respected Oil Daily has released an En­ inflation-absent any legislative action difference between nominal and real capital ergy Economics Issue which deserves or policy debate-increased tax liability gains; in contrast, taxpayers with incomes careful review by my colleagues and the would be nearly one-half of $1 billion in below $100,000 suffered real capital losses Nation. even though they were taxed on positive that year alone. nominal gains. In each income class up to Three headlines tell much of the story: For the benefit of the Members I am "Regulations is the Major Cloud on Oil's $50,000, recognizing real capital gains makes inserting in the REC'0°1) 9n art~cle by Dr. the tax liability negative. At higher income Capital Horizon." "Gas Industry Capital Feldstein which appeared in the Wall levels, tax liabilities are reduced but remain Spending Must Rise Fourfold." "Pro­ Street Journal on Julv 27. positive on average; the extent of the current ducers, Not Planners, Are Key to Ade­ [From the Wall Street Journal, July 27, 1978] excess tax decreases with income. quate Future Energy Supply." Inflation not only raises the effective tax Frank Ikard, president of the American INFLATION AND CAPITAL FORMATION rate, but also makes the taxation o! capital (By Martin Feldstein) Petroleum Institute, reports $25 billion gains arbitrary and capricious. Individuals During the past decade, effective tax rates who face the same statutory rates have their must be spent annually for a decade to have increased dramatically on capital gains, real capital gains taxed at very different "find and develop new energy" for Amer­ on interest income and on the direct returns rates because of differences in holding peri­ ica. He says the major cloud over in­ to investment in plant and equipment. In­ ods. For example, among taxpayers with ad­ vestor confidence is Government regu­ vestors in stocks and bonds now pay tax justed gross incomes of $20,000 to $50.000, we lation. He cites the "languid pace" of rates of nearly 100 percent-and in many found that only half of the tax liability on lease sales on the Outer Continental cases more than 100 percent-on their real capital .gains was incurred by taxpayers Shelf and oil and gas price controls as returns. whose liabilities on real gains would have driving prices up and investment down. This change has taken place without pub­ been between 80 percent and 100 percent of lic debate and without legislative action, their actual liabilities. The remaining hal! of To this, I add that our own Joint Eco­ though Tuesday's vote by the House Ways tax liabilities were incurred by individuals nomic Committee issued a study in April and Means Committee to "index" capital whose liabilities on real gains would have showing the cost of Government regula­ gains may finally have placed the matter on been less than 80 percent of their actual tions at $102.7 billion annually-with the the political agenda. Our tax system was de- statutory 11ab111ties. 23768 EXTENSIONS OF REMARKS August 1, 1978 In short, our study showed that inflation prices rose 6 percent. An investor with a SOCIAL SECURITY: HOW SECURE has substantially increased-roughly dou­ 40 percent marginal rate obtained a 6 per­ IS IT? bled-the overall effective tax rate on cor­ cent after-tax yield but a real after-tax yield porate stock capital gains. Although this es­ of zero. In short the effective rate of tax on timate relates to 1973 (because that is the real income was 100 percent. HON. MAX BAUCUS only year for which data of this type are IMPERFECT BUT • • • OF MONTANA available), the continuing high rate of infla­ tion means that the tax distortion for more The meaning of this calculation is clear. IN THE HOUSE OF REPRESENTATIVES If historic cost depreciation is continued, recent years is likely to be even greater. Tuesday, August 1, 1978 The second major problem that inflation taxpaying bondholders will receive little or causes in our tax system is in the treat­ no after-tax income. This can be remedied • Mr. BAUCUS. Mr. Speaker, I rise to­ ment of depreciation. Under current law, by allowing bondholders and other lenders day to express my concern with the lax the amount of depreciation that is allowed to include only real interest receipts in their security controls within the Social Se­ on any asset depends on its original cost. taxable income. But this should be seen as only an imperfect way of dealing with the curity Administration. When inflation raises the price level, the real On July 7, 1977, the Washington Post value of these depreciation allowances is re­ more basic problem of depreciation. More­ duced. This reduction in the real value of over, it is important to limit this change printed an alarming article stating "a depreciation that is caused by the historic in the treatment of interest to bondholders; social security computer system contain­ cost method of depreciation is equivalent to reducing the deduction taken by corpora­ ing personal information on millions of a substantial increase in the rate of tax on tions to their real interest payments with­ Americans is open to fraud and un­ corporate and other investment income. out adjusting depreciation rules would only authorized disclosure of confidential In 1977, the historic cost method of tax transfer the full burden of mis-measuring data." Conceivably a person with the depreciation caused corporate depreciation depreciation to equity investors. proper technical know-how can gain ac­ to be understated by more than $30 billion. Replacing the current method of deprecia­ cess to personal records containing such This understatement increased corporate tax tion is, therefore, the key problem. If this is liabilities by $15 billion, a 25 percent in­ done, adjusting the taxation of interest in­ vital statistics as family income and crease in corporate taxes. This extra infla­ come is of secondary importance. The specific assets, medicaid and retirement benefits, tion tax reduced net profits by 28 percent method of depreciation that is adopted-re­ and marital status for over 170 million of the total 1977 net profits of $53 billion. placement cost depreciation, general price people. This is the single most important adverse indexing or immediate expensing of invest­ Recognizing the seriousness of the effect of inflation on capital formation. ment-is a much less important issue than situation, Representatives JoHN Moss This brings me to the final tax problem the general principle that the value of de­ (D-Calif.) and CHARLES RosE (D-N.C.) caused by inflation, the failure to distin­ preciation must be insulated from the ef­ called for an investigation of the massive guish between nominal interest and real fects of inflation.e interest. This problem is fundamentally dif­ computer network linkin~ more than ferent from the problems involved in capi­ 1,300 Social Security Administration of­ tal gains taxation and in depreciation. The REMEMBER THE ARMENIANS IN fices. The results of the studv bv the nature of this difference is still not widely THE KARABAKH REGION General Accounting Office (HRD-78- appreciated. The difference is extremely im­ 116) were not encouraging. portant, however, because it implies that The GAO found four major design changing the tax treatment of interest is HON. ADAM BENJAMIN, JR. and management weaknesses within the less urgent than the other changes. Let me explain why. OF INDIANA SSA's security system. They were as It is clear that taxing nominal interest in­ IN THE HOUSE OF REPRESENTATIVES follows: Employees can create as well as query come imposes an unfair burden on bond Tuesday, August 1, 1978 owners and other lenders-. But allowing a a beneficiary file from most of the 3,000 deduction for nominal interest expenses also e Mr. BENJAMIN. Mr. Speaker, re­ terminals in a variety of Federal, State, provides an unfair benefit to corporations cently, the Members of this body ob­ and private offices. and other borrowers. When markets have served Captive Nations Week and many There is a failure to use the computer's had a chance to respond fully to the higher "audit trail system" which requires users rate of inflation, interest rates will adjust eloquent statements were made concern­ to reduce the unfair burden on lenders and ing the oppression of freedom loving peo­ to identify themselves when gaining ac­ to reduce the unfair advantage of borrowers. ples who are denied that most elemen­ cess to or creating new files. If all borrowers and lenders had the same tary human rights. The system used to lock the com­ marginal tax rate, the market adjustment of I add my voice to theirs by making puter by shutting down the system dur­ interest rates could eliminate all inequities, particular reference to the situation in ing nonworking hours is ineffective and leaving borrowers and lenders with the same Soviet Armenia. More specifica!ly, I wish seldomly used. real after-tax rates of interest that they to speak on behalf of the Armenians liv­ Employees have unlimited and unre­ would face in the absence of inflation. stricted access to terminals. Computer Let me emphasize, however, that this ing in the Karabakh region. rough, long-run justice would only be Karabakh is a mountainous region of communication terminals are situated achieved if the current method of deprecia­ 150,000 people that is under the jurisdic­ so that they are nat restricted to selected, tion is replaced by price-indexed or current tion of the Soviet Republic of Azerbaijan. designated individuals. cost depreciation. If we stay with our cur­ Eighty percent of the population is The problems, however, still extend to rent system of depreciation, interest rates three other areas. First, the Social Se­ will fall to adust fully and bondholders Armenian. curity Administration's responsiveness wm suffer a substantial permanent fall in Today, the people in Karabakh suffer to recommendations can be considered, their real after-tax returns. because they are Armenian. As reported at best, ex post facto. Generallv, changes In a recent NBER study Lawrence Sum­ by Raymond H. Anderson in the New mers and I showed that, roughly speaking, are made after security problems have York Times of December 11, 1977, the occurred, rather than following recom­ with our current system of depreciation and Armenians in Karabakh are "victims of taxation, each 1 percent rise in the expected mendations for preventative action. The rate of inflation will induce a 1 percent rise cultural oppression, economic discrimin­ New York Times reported that the "lack in the market rate of interest. The real rate ation and other ethnic disadvantages.'' of locks and personnel controls appeared of interest will remain unchanged, but the Human rights have always been a con­ to contradict assurances given Congress real after-tax rate of interest will fall sharp­ cern of the American people and Presi­ more than 6 months ago by the Social ly. This is, in effect, the mechanism by which dent Carter give public recognition to Security Administration." firms transfer some of the adverse effect of that concern on January 27 of this year historic cost depreciation to bondholders. Moreover, these problems are not The magnitude of this effect is large when he said, "I do not intend to back unique to the central social security net­ enough to imply effective tax rates of more down, ever. As long as I am in the White work. The Social Security Administra­ than 100 percent on interest income. Con­ House, human rights will be a major con­ tion routinely disperses information to sider what has happened since the early sideration." other Federal agencies, the States, and 1960s. The inflation rate was then only 1 I support the President in his com­ private insurance companies for use in percent, and the 5 percent nominal yield of mitment and I especially ask that the administering medicare and other wel­ Baa bonds provided a real yield of 4 per­ Members of this House remember those fare programs. As of now, no attempt has cent. An investor with a 40 per~'ent marginal rate obtained· an after-tax yield of 3 per­ who suffered in Soviet Armenia and the been made to determine whether ade­ cent, and a real after-tax yield of 2 percent. Karabakh region when they are called quate security is provided for beneficiary By comparison, during the past three years a upon to decide issues which bear on their information in these areas. Baa bond yielded 10 percent, but consumer plight.• Lastly, the SSA is now requesting per- August 1, 1978 EXTENSIONS OF REMARKS 23769 mission from the General Services Ad­ of it, is this legally justifiable, and do in­ ments will be offered to reduce funding ministration to reactivate their monitor­ dividuals whose data is being exchanged and to restrict how our assistance may be ing capability over calls at their teleserv­ both know of and consent to such ex­ changes? used in a variety of ways. ice centers. 'Their reason, o:iiicials said, is (2) How is this data treated in terms of I am opposed to these amendments, to supervise how employees handle citi­ security and privacy? Mr. Speaker, and I have been encouraged zens seeking information. Callers, how­ (3) Under the routine use provision, what by the fact that so many thoughtful and ever, would not be aware of the use of data on individuals is being given by SSA responsible individuals have indicated listening devices during conversations in to individual states and local governments? their opposition to them as well. For ex­ which confidential information is fre­ (4) How is this data treated in terms of ample, the leaders of 26 major religious quently exchanged. The monitoring security and privacy? organizations issued a statement yester­ (5) What outside consultants or contrac­ could result in both an unwarranted in­ tors have been hired or are about to be day calling upon Members of the House vasion of privacy and an added security hired by SSA to deal with data security to support the development aid provi­ problem. problems? Specify names of companies and sions, both bilateral and multilateral, of The pressing need created by these individuals, amounts of money involved, the bill. looming problems have led me to join and whether such contracts are let competi­ For the benefit of those Members who with three of my colleagues to call for tively. may not have seen this statement, I am three new investigations of the Social (6) What access to SSA data on individu­ including a copy of it in the REcORD at als will these people have, and what provi­ this time: Security Administration. The new sions are being made to safeguard that studies will concentrate on: information? STATEMENT OF PROTESTANT, CATHOLIC; JEWISH, (1) Seeing that the Social Security Ad­ (7) At SSA's central complex, ADP main­ AND ORTHODOX LEADERS ON FOREIGN ASSIST­ ministration has taken action as rec­ tenance contractors maintain offices and ANCE LEGISLATION (H.R. 12931) ommended by Congress. ADP terminals accessing SSA's data banks. As representatives of the major religious (2) Investigating security facilities Specifically, what access do such people have communities in the United States, we have within the Federal agencies, States, and to SSA's data banks and master beneficiary come today to meet with President Carter insurance companies for the protection files and what security measures exist on and members of the Administration to offer SSA's part to prevent abuse of such unique our support for the development aid provi­ of confidential beneficiary information. access? What abuses, if any, have occurred? sions of the Foreign Assistance legislation (3) Discovering the effects and legal (8) Have any abuses occurred involving which will be voted on by the House of Rep­ basis for monitoring calls within the use of dial-up units and their operators, or resentatives tomorrow. It is the essence of SSA's teleservice centers. people with access to them? Please be spe­ the biblical faith which we share that the I emphasize, Mr. Speaker, that our in­ cific, and include how SSA presently pre­ religious community stands with those who vestigation is more than mere theoreti­ vents programmers on these units from using are the poorest and most vulnerable mem­ cal speculation. The GAO study of June phone numbers to gain access to SSA data bers of society. As the prophets spoke in be­ that is outside his or her particular data half of the orphans and the widows, so must 5, 1978, reveals several security abuses bank. we address ourselves to the needs of those responsible for fraudulent use of mil­ (9) Is data from active files used by SSA throughout the globe who live in conditions lions of dollars and illegal impositions on to work up statistics within the agency? of absolute poverty, deprived of basic nutri­ individual citizens' rights. An example of Specify when such activities commenced, tion, without adequate shelter, education, abuse, as cited by GAO, is a private com­ how many files are involved, what data is health care or employment. We have both pany which "built a flourishing business used and how is it protected. pressing needs and poor people here in our (10) Is data from active files used by out­ own society, but the added burden of the by gaining unauthorized access to Fed­ global poor is that they have even less voice eral medical records and selling the in­ side contractors on SSA's behalf to work up statistics or for any other purposes? and visibility in our midst. Our purpose formation to many of the Nation's Please specify, and describe what kind of today is to call attention to the urgency of largest insurance companies." 11 ve beneficiary records are utilized? Also, their needs and to reassert the moral respon­ In another case, two Social Security how is the data safeguarded in such situa­ sibility we have as members of the inter­ Administration field office employees tions? national community to do our part on their behal:!'. created 14 beneficiary accounts which ( 11) Has SSA finished a proposal or RFP The Foreign Assistance legislation now be­ they proceeded to process for payment. or has a contract been let or started to carry fore the Congress has already been strin­ They managed to collect over $55,000 be­ on the work of the Office of Advanced Sys­ gently reduced. Efforts wm be made in the fore their actions were discovered. tems? . House to reduce it even more drastically. In this age of advanced computerized We feel this series of questions addresses We urge members of the House to resist such technology, we continually place our various issues of data distribution and se­ cuts in U.S. foreign development assistance. trust in complex systems which we do curity critical to the future of the Social We especially call attention to the U.S. role Security system, because so many m11lions in supporting multilateral programs such as not fully understand. Modern tech­ of Americans are intimately touched by ac­ the International Development Association; nology, however, is not foolproof, and we tions obviously requiring more careful moni­ this program is aimed at the absolutely poor­ must protect ourselves against faulty toring and oversight. It is our hope that our est people in the world. It deserves both systems before the privacy of American requests wm receive some priority, and that more support and a better hearing than it citizens is abused. Mssrs. Zimmerman and Councilman will be has received in this Congressional debate. Following is one of three letters sent assigned significant roles in the performance None of the foreign assistance programs to Elmer Staats, Comptroller General of of all the work. Thank you. are perfect; the real question is whether Sincerely, with all their shortcomings they still are the United States, calling for a follow­ JOHN E. MOSS, worthy of support. We believe they are. up investigation to the GAO study of Member of Congress, Speaking from a faith perspective, we affirm June 5, 1978. CHARLES ROSE, that in spite of divisions of sovereignty, geog­ HOUSE OF REPRESENTATIVES, Member of Congress, raphy and culture, we exist in the world Washington, D.C., July 18, 1978. ROBERT F. DRINAN, as a single human family. The poorest mem­ Hon. ELMER B. STAATS, Member of Congress, bers of that family lay a moral claim upon Comptroller General of the United States, MAX BAUCUS, our conscience. We cannot wait for a perfect General Accounting Office, Washing­ Member of Congress.e program before we address that claim on ton, D .C. our conscience. The existing international DEAR MR. COMPTROLLER GENERAL; This iS development efforts-both bilateral and the second of several letters meant to serve RELIGIOUS LEADERS BACK FOR­ multilaeral-have improved significantly as follow ups to the highly revealing GAO EIGN AID LEGISLATION in recent years. They merit our support, as report of June 5, 1978, on status of informa­ well as our efforts to reform them. tion security at the Social Security Admin­ Finally, we are not ready to believe, even istration. Questions that follow deal with HON. MATTHEW F. McHUGH in th face of domestic problems of inflation, elements of the June 5 report that are sepa­ OF NEW YORK unemployment and debate over taxes, that rate from private insurance companies and lN THE HOUSE OF REPRESENTATIVES the American public will refuse to contribute how they deal with SSA information. We are to the needs of the very poorest in the hu­ especially concerned with the following Tuesday, August 1, 1978 man family. we are, therefore, even less in­ questions, and seek to have them treated • Mr. McHUGH. Mr. Speaker, the for­ clined to believe that they will retaliate separately from those asked in the com­ against their elected representatives who panion letter. eign assistance appropriations bill is vote for these programs. Indeed, the basic (1) Under the routine use provision, what scheduled to come before the House for problem is that the case for the global poor data on individuals is being given by SSA consideration tomorrow. As every Mem­ has not been adequately put to the public to other Federal agencies, what use is made ber is aware by now, numerous amend- so that a careful decision can be made. AB CXXIV--1495-Part 18 23770 EXTENSIONS OF REMARKS August 1, 1978 religious leaders we accept our share of plest sense it is vital for my colleagues to cutoff her payments completely until responsibility for not making the case and I in Congress to correctly perceive the overpayment was made up. I sincere-: strongly enough. Even at this late date, how­ what changes are necessary, or the voting ly doubt that the problem was caused by ever, we urge our Congressional representa­ tives to support the Foreign Assistance leg­ public will correctly decide that replac­ some deviant social security worker. islation before them; we pledge in turn to ing us is the necessary first step. In the Rather, the problem resulted because no advocate the wisdom of such a choice with broader sense it is our duty as their rep­ one noticed that the woman was a living our constituencies. resentatives to respond. I have given the and breathing person who could not eas­ Dr. Jimmy Allen, President, Southern matter considerable thought and will ily survive an unexpected cutoff of her Baptist Convention. present some of my ideas and suggestions social security checks. The depersonali­ Most Reverend Edwin Broderick, Executive here over the course of the next few zation associated with bureaucracy often Director, Catholic Relief Services. Rabbi Bernard Rosensweig, President, weeks. I have hopes that one of the out­ leads to results like this. Rabbinical Council of America. comes of Proposition 13 will be a spur to­ On the other side of the matter, bu­ Archbishop Iakovos, Greek Orthodox Arch­ ward the effective progressive reform of reaucracies increasingly alienate their diocese of North and South America. our American Government by reducing own employees from the goals of their Tartt Bell, Director, Washington Public the size of Government and bringing it jobs. It follows that just as people no Affairs Program, American Friends Service closer to the people it serves. longer know those with whom they inter­ Committee. I would first like to discuss the problem act in business and government, then Dr. Keith Bridston, U.S. Conference for the Worid Council of Churches. of big government and business. Many those workers in business and govern­ Dr. James Cogswell, Director, Task Force on of the major complaints of people today ment no longer know their public. Com­ World Hunger, Presbyterian Church, U.S. are centered on the existence of large panies now resort to consumer polls to Dr. George Chauncey, Chairperson, Inter­ bureaucracies. One of the negative re­ determine what the people want. They religious Task Force, Director of Washington sults of increased bureaucracy has been often use advertising to try and stimu­ office, Presbyterian Church of the U.S. the depersonalization of our society. late artificial consumer needs. Business Gernard Confer, Executive Director, Lu­ People have less personal interaction must resort to statistical views of their theran World Relief. Lamar Gibble, Chairman, International with their fellow humans, thus becoming customers because they do not really Affairs at NCC, Church of Brethren. more isolated and alone. The examples know them as individuals. Likewise, busi­ Dr. J . Harry Haines, General Secretary, of this phenomena in both government ness does not really know its workers. United Methodist Committee on Overseas and business are endless. People once There was a time when most people were Relief. shopped in small "mom and pop" stores personally acquainted with their employ­ Reverend J . Bryan Hehir, Associate Secre­ where the owners and customers were ers. Labor disputes could sometimes be tary for Office of International Justice and good friends, perhaps even neighbors. reasonably settled in a short period of Peace. Most Reverend Thomas Kelly, General Sec­ Consumers now shop instead at super­ time as the owners and workers discussed retary of United States, Catholic Conference. markets, department stores, and res­ the matter. Now it generally takes the Rabbi Benjamin Kreitman, Executive Vice taurant chains, where they encounter intervention of a union to solve a labor President, United Synagogue of America. nameless, ever-changing clerks and cash­ dispute, and the union itself may notal­ William D. Ladd, Personal Representative iers. Small friendly businesses have been ways have a mechanism to become in­ of President Spencer Kimball, Church of swallowed up by giant bureaucrati·c cor­ volved in an individual's problem. One Jesus Christ of Latter Day Saints (Mormons). porations. Small businesses tended to person in a small business generally has a Dr. Robert Marshall, President, Lutheran care about their customers more because large and diversified responsibility. Church of America. Bishop D. Ward Nichols, AME. they knew their customers better. If Workers in large enterprises tend to Rabbi Eli Pikchik, President, Central Con­ something was wrong with a product, have rather specialized jobs, though, and ference of American Rabbis. people could complain personally to the are often less able to see the usefulness Rabbi Stanley Rabinowits, Rabbinical As­ store owner who, fearful of losing a valu­ of their work. People more and more sembly. able customer and good friend, would act think of themselves as just part of a Bishop Herbert Bell Shaw, AME-ZION. promptly to remedy the problem. One machine with little individual impor­ Rabbi Henry Siegman, Executive Vice customer could make a difference to big President, Synagogue Council of America. tance. Work that once involved a great Ronald Stenning, National Director, CROP business, especially if he told his com­ deal of skill and creativity has now be­ (Church World Services). plaint to other shoppers. One person sel­ come simply routine and even boring in Dr. Eugene Stockwell, Associate General dom makes a difference to big business, nature. I, for example, find nothing in­ Secretary, National Council of Churches Di­ though, and it can effe·ctively ignore in­ herently exciting about spending much rector, Division of Overseas Ministries. dividual complaints. Forcing people to of my time signing my name to letters Rabbi Mark Tannenbaum, American Jew­ take their complaints to uncaring stran­ and documents in the congressional of­ ish Committee. gers in a complaint department rarely fice, yet I realize that most people have Dr. Robert A. Thomas, Chairman of the accomplishes anything other than in­ Board, National Council of Churches, Divi­ work much less stimulating than this. sion of Overseas Ministries, Christian Dis­ creased alienation. Custom'ers feel they The gap between work and leisure has ciples of Christ. have no control over the quality of the greatly increased. Work is too often Dr. Foy Valentine, Executive Secretary, products they buy or the services they something to be done purely to earn Christian Life Commission of the Southern receive. money instead of bringing any inner Baptist Convention.e The same is true of modern big gov­ feelings of joy or accomplishment. Em­ ernment. Members of the House of Rep­ ployers may not seek ways to increase resentatives are now elected from dis­ worker satisfaction because they do not UNDERLYING CURRENTS OF tricts larger in population than that of see their workers as individual creative PROPOSITION 13 entire States at the time when our Con­ people. It is not surprising that fairness stitution was originally drafted. We in may seem to be lacking when there is no HON. GEORGE E. BROWN, JR. representative government cannot possi­ personal contact between those making bly have the degree of personal interac­ decisions and those affected by them. OF CALIFORNIA tion with the public that was originally The problem goes well beyond employer­ IN THE HOUSE OF REPRESENTATIVES thought necessary for our democracy. employee relationships and product qual­ Tuesday, August 1, 1978 One person can do little to gain the per­ ity. It extends to environmental issues, • Mr. BROWN of California. Mr. sonal attention of his or her elected offi­ energy policie~. national defense ques­ Speaker, I have read a great deal recently cials. Complaints are often answered tions and more. Decisions increasingly concerning the meaning of the over­ with form letters and it is often only be­ benefit organized special interests rather whelming approval of Proposition 13 in cause of some random kindness of a pub­ than the public good. The decision­ Californi.:t. Most writers tend to agree lic official that anything is ever done makers, however, often find themselves that something is wrong with our Gov­ about an individual problem. We in Con­ enmeshed in the same situation, facing ernment and that the people want the gress have frequently heard from people unrewarding mountains of bureaucratic problems solved. There is a large amount like a poor woman who asked me for help detail in their attempts to administer of confusion, though, concerning the after the Social Security Administration their large staffs and programs. exact nature of the problems and what which had accidently overpaid her dur­ One result of all this has been the in­ should be done about them. In the sim- ing a period of time, decided arbitrarily crease of citizen apathy. People tend to August 1, 1978 EXTENSIONS OF REMARKS 23771 neglect areas in which they see little They moved to San Diego from Massa­ The following day, Hamilton approached chance for a personal role. Bureaucracies chusetts in the late 1880s. Charlie again and asked if he'd be interested inevitably deal with people impersonally Charles K . Fletcher is one of 10 children, in running Pioneer Federal Savings and Loan each of whom became directors of the Ed in Honolulu as well as his Home Federal in and so promote this apathy. People look Fletcher Company and continue the family's San Diego. for something to fight or support but see interest in real estate. "I refused at first but Hamilton insisted. only mindless, uncontrollable organiza­ He attended San Diego public schools and He said that he was going around the world tions. The result is simply a withdrawal was graduated from Stanford University in on a four-month honeymoon and that he'd from personal efforts to improve com­ 1924 with a degree in political science. offer me an interesting opportunity. munities or society as a whole. "After Stanford," Charlie explained, "I "I'd take over his job for the first month, Politicians have little direct say about spent a year at Oxford and another year my San Diego president for the second traveling around Europe and the Middle month, my son for the third month and I'd this phenomenon in the private sector East. of our economy. Proposition 13, though, come back again for the fourth month." "On my way home I came through Asia Pioneer gave Charlie complete control of was widely supported by the public as a and stopped in Honolulu. The first time I the company and a hefty advertising budget. chance to strike out against deperson­ saw the islands I knew this is where I even­ With Hamilton winging around the world alization and bureaucracy in big govern­ tually wanted to live." with his bride, Charles K. Fletcher went to ment. It was, in this sense, a vote against In 1926, Charlie married Jeannette Tober­ work. the system that perpetuates alienation man, daughter of another California land By the end of the four month period, he in our society, and we politicians must developer. They spent their honeymoon in had doubled the association's worth. Pio­ analyze the choices we make in repre­ Tahiti, stopping again at Honolulu on their neer's $4 million business was up to $8 mil­ return. lion. senting our constituencies with this re­ "For some reason, though, we decided not "Hamilton couldn't believe what had hap­ ality in mind. I don't think it was simply to stay in Hawaii but to live in Los Angeles. pened and said that Pioneer couldn't afford to a vote against "government", or for the "I worked four years selling stocks and let me go. So I agreed to fly over from the neglect of schools, parks, and other pub­ bonds and another four years at what is mainland every other month. lic services. Instead it was a vote against now the Security Pacific Bank. This is when "Soon we were up to $16 million and Ham­ a bureaucratic structure of government I got interested in the savings and loan ilton retired. Eventually a new board of di­ organization. It is a challenge for all of business." • rectors got in and the company started to On one of his vacations, Charlie drove take off." us to change that structure and yet pre­ down to San Diego and started the Home Charlie retired at the age of 65 from Home serve the important values we have al­ Federal Savings and Loan Association with Federal and is now Chairman Emeritus. His ways attached to public education, com­ $9,500. That was in 1934. Today this same son, Kim, is president of the association. munity recreation, care for the sick and business is worth over $3 billion. There is no mandatory retirement age at elderly, and all of the other elements we "When the war came along I went into Pioneer Federal but Charlie says that cur­ associate with a just and compassionate the Navy. I'd missed World War I so I was rent president, Don !mig, will become Chief society.e ready. I felt that I ought to do something. Executive Officer at the end of the year ac­ "So at the age of 40 I was assigned to the cording to current plans. staff of the Chief of Naval Operations in "From the little savings and loan chartered CHARLIE FLETCHER UNDERSTANDS Washington, D.C." in 1890," he said, "we are now worth $240 It was in the nation's capital that Charlie's million. In a few more years we will be at interest in politics was reawakened and he the half-billion level. HON. CECIL (CEC) HEFTEL ran twice for Congress as a Republican. "The way things are going I expect that OF HAWAII On his second try, in 1946, he was elected, we will eventually be the biggest association defeating an incumbent Democrat who had IN THE HOUSE OF REPRESENTATIVES in the state. Now that our Pioneer Plaza is held oftlce for 20 years. built I think we're just about to catch that Tuesday, August 1, 1978 Because President Truman called a spe­ pass and run for the touchdown." cial session of Congress during election sea­ Charlie's secret: "People, that's it. Good • Mr. 'HEFTEL. Mr. Speaker, under the son. Charlie decided not to fly back to Cali­ people. If you can entice the right people to leave to ext.end my remarks in the fornia to campaign. work for you then you've got it made. RECORD, I include the following: Only a He feared that the voters would backlash "During my college days at Stanford it was few of our number have been in the him for leaving Washington while important an unwritten rule that you spoke to everyone House long enough to remember Charlie legislation was being discussed. that walked by. That's still my rule. Fletcher, a former Member of Congress "For whatever reasons, I was defeated and "This company is run on understanding who represented a California district im­ the Democrats got back it. We could win a and good fellowship. People helping people. That's why Pioneer Federal Savings and Loan mediat.ely after World War II. seat but not hold it. has been a success." I am proud to note that Charlie has "Actually, my election defeat was the best Indeed it is.e been a resident of Honolulu for a num­ thing that ever happened to me. ber of years and has made a profound "If I hadn't lost I would never have gone and lasting impress.ion upon Hawaii as back to my Home Federal Savings and Loan one of the most capable and successful Association. My son, Kim, is no\v running the A FOUR-POINT PROGRAM TO CUT businessmen in our State. business which is the third largest of its kind TAXES, BALANCE THE BUDGET A recent article in the Honolulu Ad­ in the country." vertiser recounted Charlie's r.emarkable In 1960, Charlie was enjoying a conven­ tion in Honolulu when he was approached HON. ROBERT W. KASTEN, JR. career, and I am pleased to bring that OF WISCONSIN profile to the attention of mY colleagues. during a break by George Hamilton, head of Pioneer Federal Savings and Loan. He IN THE HOUSE OF REPRESENTATIVES CHARLIE FLETCHER UNDERSTANDS was 58 at the time and Hamilton was in his (By Ron Ronck) seventies. Tuesday, August 1, 1978 It is only a few steps from Charlie "When he learned my name was Fletcher, " Mr. KASTEN. Mr. Speaker, the suc­ Fletcher's desk to a small telescope that he he asked if I was from San Diego. I said I cess of California's Proposrtion 13 has uses to watch the planes taking off at Hono­ was and told him who my parents were. By finally forced Congress to open its eyes lulu International Airport. coincidence he knew them very well. to the rampant dissatisfaction with the "Take a look," he says as he waves a hand "Later he took me downtown to see the tax burden imposed by Federal and across the horizon. "Isn't this a fantastic Pioneer office which was then on the corner view?" State governments. Blue-coUar workers, of Merchant and Fort. small businesses, and families are all Indeed it is. "It was a dinky hole-in-the-wall and I 'd Charlie's view originates on the 19th floor never seen anything so archaic in my life. It united in this tax revolt. of Pioneer Plaza, downtown at 900 Fort looked as if they were literally pushing things The clearest fact about the 1978 tax Street Mall. It couldn't be much better. under the rug. debate is that the people are way ahead Opened last December on his 75th birth­ "He told me that Pioneer was the oldest of the politicians. Now it is time for the day, the 22-story building is a monument to savings and loan in the state, having been politicians to catch up. It is time for us the leadership he has shown as Chairman chartered by King Kalakaua in 1890. I asked of the Board and Chief Executive Officer of to join in by ~aking action here in Wash­ if he was the oldest how come he was also the ington. It is time to cut taxes and put Pioneer Federal Savings and Loan. smallest. The name of Fletcher is well-known in a stop to uncontrolled Government "He told me he wasn't sure since he hlid spending. And it is time for the people San Diego. just taken over the chairmanship six months Charlie's father, Colonel Ed Fletcher, was before. The board of directors had brought to get their money's worth again. an early land developer in California and his him out from California because he was a The frightening rise in the cost of liv­ mother, Mary, was prominent in local society. professional fund raiser." ing, the decline of our currency abroad 23772 EXTENSIONS OF REMARKS August 1, 1978 and the general erosion of our economic would have to be combined with lowered AUTOMATIC INFLATION ADJUSTMENTS health rank as preeminent concerns of Federal spending in order to prevent There is a great inequity built into our the American people. Results of my an­ runaway inflation. Such a plan is not Federal tax system. Individuals whore­ nual legislative questionnaire to the citi­ without precedent. President Kennedy ceive cost-of-living wage increases to zens of my congressional district show espoused a similar proposal during his compensate for escalating inflation soon that for the second consecutive year, in­ administration which resulted in large discover that they are paying a higher flation is the most pressing issue facing dividend yield::;. The Kennedy tax cut percentage of Federal taxes than they did our Nation, with "Government Spend­ enriched the economy with a net and prior to their pay increase. Inflation has ing," "High Taxes," and "Too Much substantial stimulus that led to an over­ pushed them into a higher tax bracket. Government" ranking close behind. all increase in Federal tax revenues. The worker must confront a double prob­ we have no choice but to formulate REDUCE CAPITAL GAINS TAXES lem-the hardship imposed by increasing an effective Federal program that will There seems to be a general consensus costs, because of inflation and a higher relieve the tax burden imposed on the that our country is not generating a tax rate, because of the tax bracket American people. Major proposals are sufficient rate of capital to enable the change. The effect of this inequity is con­ now before Congress and deserve our employment of all our resources. To al­ siderable. serious consideration. leviate this problem, my collegaue from President Carter proposes to correct I advocate a four-phase attack incor­ Wisconsin, Congressman BILL STEIGER, this problem in a limited way through porating: First, a substantial reduction has proposed legislation to reduce the periodic tax reductions that do not pro­ in Federal income tax rates; second, a capital gains tax rates for both individ­ vide for real tax reductions, but only return to the pre-1969 level of capital uals and corporations to its pre-1969 compensate for inflation-induced tax in­ gains taxation; third, indexing of the level of 25 percent. The current law is creases. These tax adjustments have not current tax system; and fourth, a con­ quite confusing and includes several been across-the-board reductions that certed effort to abolish the Nation's procedures for calculating the necessary benefit all income classes equitably. In­ tax rate. I am a cosponsor of the Steiger stead, they overcompensate those of budget deficit. lower incomes while the tax burden per­ MAJOR TAX CUTS NEEDED bill, which would greatly simplify the tax procedure, while at the same time en­ centage increases for middle-income President Carter has proposed a $15 courage economic growth. Americans. billion tax cut for the American people. The economic stimulation provided by I am a cosponsor of the Anti-Inflation In spite of administration rhetoric, this reducing capital gains tax rates would Tax Reduction and Reform Act which will offer little relief. Indeed, the Carter do much to create permanent jobs-up proposes to correct this tax injustice by proposal will add nearly $100 to the tax to 200,000 in the first year by one esti­ linking the tax rate to a specific price burden of the average household next mate. In addition to creating new jobs, index. This index is the average of the year, because it ignores the impact of the proposal is likely to reduce the na­ Consumer Price Index over tihe calendar inflation and newly enacted social secu­ tional deficit through an increase in year. This plan would shield the taxpayer rity tax increases. Federal revenues. These revenues would from the effects of inflation on taxable The Carter program is merely a result from the inducement to "realize" income. placebo-a sweet taste without much capital gains profits through the sales Personal income tax indexing is not an substance or effect. In contrast, Senator of capital assets. unproven notion. Canada, Brazil, Fin­ land, France, and Israel have all adopted WILLIAM ROTH, of Delaware, and Con­ Our stock market, a measure of na­ gressman JAcK KEMP, of New York, have indexing with a high degree of success. tional growth and stability, has been in Congress already adjusts social security devised a plan that is truly a tax relief a precarious condition throughout the measure. The Kemp-Roth bill, of which benefits, supplemental security incomes, past decade. It seems that more and and Federal and congressional salaries I am a cosponsor, can and will save in­ more people are holding on to their cap­ dividuals and businesses billions of dol­ to offset inflation. The taxpayer deserves ital or are looking for other areas in the same protection . lars over the next few years. This bill which to place their funds. The net re­ proposes to cut tax rates by an average sult is a decline in the relative value of BALANCE THE BUDGET of 30 percent over the next 3 years. stocks and corresponding difficulties for Inflation is at the root of the tax revolt The Kemp-Rotl: bill is more equitable our Nation·s business and industry. that is spreading across the Nation. In­ than aggregate tax cut proposals flation is fed to a large degree by Federal A reduction in the capital gains tax deficit spending. The above-mentioned espoused by the administration, which rate would lower the tax paid on equity promise a set tax rebate for all income tax reductions must be combined with earnings, which would in turn nurture cuts in Federal spending in order to levels. The Kemp-Roth bill would pro­ future stock investment. A reduced cap­ vide the largest percentage of tax relief guard against inflation. ital gains tax rate would also tend to The American people will no longer to those with the lowest income. For increase current stock market prices and example, a family of four with an income tolerate congressional inaction on infla­ would thus reduce the cost of capital to tion. Legislation has been introduced to of $10,000 could expect a 51-percent cut corporations. in its tax bill by the time the reductions attack Government-inspired inflation Administration critics of the bill claim head-on: A constitutional amendment to were fully phased in. that it will aid only high income in­ This important tax measure would require a balanced Federal budget. dividuals with substantial equity hold­ The Federal Government's propensity provide major relief for business as well. inrs. But, that is not true. Capital gains Rates on corporate income would be cut for excessive and irresponsible spending are profits realized from the sale of an is going to paralyze our economy if we over the same 3-year period. The corpo­ asset such as stock or a house. Everyone rate tax rate would fall from 48 to 45 do not stop it immediately. Logic shows who owns a home, business, or farm­ that a larger Federal deficit makes in­ percent and would only apply to earn­ and those who may dream of such future ings in excess of $100,000, rather than creased taxation imperative. It is unfair purchases-knows the fallacy of the ad­ for our citizenry to bear the burden of the present $50,000-a major break for ministration's arguments. Today's taxes small business. Government waste. on capital gains are hurting the small Furthermore, it is unreasonable to ex­ Critics of the Kemp-Roth bill argue investors more than the rich. During pect the American family to live within a that the plan's $100 billion reduction in high inflation, the wealthy simply hold balanced budget if the Congress and the individual tax rates would bring about on to their investments. It is the small President continue with their wasteful an accompanying decrease in Federal investor who is often forced to sell. and frivolous attitude toward deficit revenues. History shows that this would Capital investment starts new com­ spending. not be the case. The lowered tax rates will have a stimulating effect, expand­ panies and expands others. A high cap­ Deficit spending promotes inflation ing the economy by encouraging invest­ ital gains tax, coupled with a high in­ and too much government, and it over­ ment, creating millions of jobs, reducing flation rate, dissuades individuals from whelms the individual who is forced to Government spending on welfare and investing, and realizing their gains, thus pay the inflated prices for land, home unemployment benefits, and expanding creating a stagnant economic situation. mortgages, interest rates, education, the tax base so that Federal revenues The Nation needs the stimulus that the clothing-and taxes. will actually increase. This, of course, Steiger bill provides. We need the permanence of a constitu- August 1, 1978 EXTENSIONS OF REMARKS 23773 tional amendment to insure that the comfortable political questions about divid­ INTERVIEW WITH CAMBODIAN REFUGEE IN Federal budget will be balanced and in­ ing the pie in a country that has come to BURIRAM, THAILAND, CONDUCTED BY AMERI­ flation brought to a standstill. expect, and to count on, steady increases in CAN EMBASSY OFFICER IN JUNE, 1978 both public and private wealth. Nobody ACCOUNT OF SOURCE F 1 MEANINGFUL REFORM NEEDED really knows why productivity has stopped Unless we are willing to provide mean­ rising. All explanations are, to one degree or Source F, 38, was a former hospital worker. ingful and lasting reform for the eco­ another, speculative. But the evidence sug­ After April, 1976, he was forced to go to the gests that it is no minor passing blip on the countryside in Battambang to become a nomic problems that plague our Nation, farmer. He fled Thailand April 21, 1978. His we will continue to witness inflation en­ chart. The causes seem to lie deep in the account follows: couraged by deficit spending, and a tax changing structure of the national economy. Productivity is simply the average output Conditions of Life in Democratic Kampuchea system that inspires open revolt by the per hour of labor. The Labor Department "In the past three years, the crops have American people. I firmly believe that if computes it every three months, and it has been adequate in my village in Battambang we adopt this four-point program to pro­ just published the figures for the spring to feed the population, but the rice is taken vide substantial tax reductions, capital quarter of this year. They show that away. I guess it is exported to China to repay gains tax decreases, income tax indexing, productivity was rising at the minuscule rate debts. and balanced budget restrictions, we will of 0.1 percent a year, after having fallen dur­ "Health conditions are poor because of in­ be able to effectively stimulate our econ­ ing the winter. Through the 1950s and most sufficient food, very poor housing, hard work, omy-inspiring real economic growth, an of the 1960s, it was going up at an impressive and mental malaise. There is also the menac­ pace of nearly 3 percent a year. In the years ing intellectual atmosphere and the fear of improved standard of living and individ­ after 1969, the trend dropped to half tha.t assassination. ual freedom for all our citizens.• rate. Since late 1976, it has been almost fiat. "There Ls no effective medicine, only con­ That departure is consistent with two coctions of roots and herbs. Many are ex­ other surprises. Inflation has been running perimental only. The people are used as ex­ AMERICAN PRODUCTIVITY considerably higher in recent months than perimental beasts or objects. The Khmer most people expected, and unemployment Rouge even tried to concoct a potion which has been considerably lower. Output over the would reveal whether someone was associated HON. TOM CORCORAN past year has been raised by putting more with the former regime. OF ILLINOIS people on payrolls, not by improving each "There was no question of using one's IN THE HOUSE OF REPRESENTATIVES person's capacity to produce. medical background and experience. All It's a striking departure, and one expla­ those associated with the former regime are Tuesday, August 1, 1978 nation may well lie in the rather low rates automatically traitors. e Mr. CORCORAN of Illinois. I was at which business has been investing new "Another ludicrous example of how stupid pleased to note the lead editorial in yes­ capital. That, in turn, may be the result of they are, the Khmer Rouge cadre once an­ low profits. Another possibility is the cost nounced that they invented a new kind of terday's Washington Post. Entitled of the new environmental and safety rules, pump. In reality they had taken half a "American Productivity," this editorial requiring industry to invest heavily in Japanese pump and joined it into another outlines the postwar American produc­ equipment to control air and water brand. tivity record and contrasts our record pollution. "There is no radio. Nothing to read. You with that of other industrial powers. Whatever the influences controlling pro­ are not even allowed to converse with your The evidence all too strongly indicates ductivity, they vary enormously from one friends. There Ls one review which tells that the American productivity growth country to another. In international com­ about rice production, but the smiling girls rate is declining. Our productivity was vetition, the United States is currently not on the covers are Khmer Rouge soldiers, not doi.ng well. The following brief table com­ the people." growing at an annual rate of 3 percent pares the increases in productivity in manu­ through the 1950's and most of the System of Administration fa:::turing, for the decade 1967-':'7, among "The Chief of our commune was an il­ 1960's but during the last 10 years, the some of the major industrial powers: literate, former guerrilla of the Khmer trend has been half of that rate. These United States 27 percent. Rouge. If there is any trouble among the recent rates are in sharp contrast to France 72. people, the Khmer Rouge spies ( chhlop) those of several other industrial powers. West Germany 70. run quickly and call Khmer Rouge soldiers I am most concerned about the recent Italy 62. who are stationed in the forests in the area. downwa-rd trend of American productiv­ Japan 107. "Discipline was instilled by a few 'exam­ ity as it has negative implications Canada 43. ples' of what one could expect if he violated Great Britain 27. the Khmer Rouge regime: throughout our economy, particularly There is a tendency in this country to "One youth, a mobile worker, shot the with regard to inflation and unemploy­ regard Britain as the world's great example village chief and his family. He was dis­ ment. As an indication of my interest, of industrial decline. But ·rou will note that membered. in cooperation with the National Center the rate of productivity gain in Briti3h fac­ "A youth was captured for a misdemeanor, for Productivity and Quality of Work­ tories over the past 10 years has been the but he managed to escape. He took a rifle ing Life, last year I sponsored a labor­ same as in American factories. from a Khmer Rouge soldier and killed five management seminar on productivity in Since no one is quite sure why the Amer­ Khmer Rouge, shouting, 'I kill only those ic!!n rate has fallen, no one is in a position who are human caskets-the Khmer Rouge.' my district. We heard from several ex­ to offer a sure remedy. But these latest pro­ perts about productivity and how coop­ "Another youth formed a resistance group ductivity figures may well strengthen the with two friends. They were discovered and eration between labor and management impulse in Congress to cut taxes on capital fled to the mountains to escape certain death. can help to improve productivity to the gains, in an effort to increase investment. The bloody or futile end to such incidents mutual benefit of both groups. Beyond that, it's also necessary to consider is a strong deterrent to others." the possibility that some of this change may I hope that the Post editorial is an­ Executions other indication of an increasing aware­ lie beyond the reach of government policy. A good many Americans' ideas about work, "The Khmer Rouge have moved against ness of the importance of productivity to incomes and economic growth began to categories of people in increasingly wide our total economy. change around 1968. These new attitudes circles. Former military, government offi­ At this time, I would like to insert the may now be showing up in the statistics on cials, and teachers were assassinated from editorial in today's RECORD: the nation's economic performance.e the beginning. The Khmer Rouge charge that AMERICAN PRODUCTIVITY everyone associated with the Lon Nol regime Throughout most of the years since World works now for the CIA. Third graders are regarded as 'dangerous intellectuals'. War II, productivity in the American econ­ omy has risen briskly. As it went up, it car­ ACCOUNTS OF LIFE IN CAMBODIA "Immediately after the war, everyone was ried with it people's earnings and standards prepared to work for the reconstruction of of living. But the rise began to slacken about the country. But the feature of the •revolu• a decade ago, and for the past year and a tion' which became . unacceptable quickly HON. JOHN B. ANDERSON was the assassinations without any judge­ half there has been hardly any rise at all. OF ILLINOIS Of all the changes overtaking the American ment. Why the assassinations? In my opin­ economy, the behavior of productivity is one IN THE HOUSE OF REPRESENTATIVES ion, they :flow from the communist doctrine. Only the poor farmers and coolies are pure. of the most peculiar-and one c ~ the most Tuesday, August 1, 1978 disquieting. The immediate consequence of no pro­ e Mr. ANDERSON of Illinois. Mr. 1 The name of the individual refugee who ductivity gains is that inflation will become Speaker, I would like to place in the provided this account has been excised to harder than ever to control. But if the pres­ RECORD the accounts of life in Cambodia protect the identity of family members or ent pattern continues, it will also ignite un- by two Cambodan refugees: friends still in Cambodia. 23774: EXTENSIONS OF REMARKS August 1, 1978

All other classes are corrupted. All others ten persons twice a day 10 tins of rice (250 prevented from acquiring a new team by are non-proletarian. From all points of view, grams per person) . league rules would be exempt from discrimination is practiced against the non­ "We could walk from one house to an­ blackouts and would have an opportun­ proletarian, including discrimination against other during the day to visit someone, but the right to live. not at night. It was very rare to have the ity to see all games of the home team "Lately, the scope of the assassinations time to see friends since we had to work so whether there is a sellout or not. has expanded, more teachers and even health hard. We worked from 0500-1200 and from H.R. 13614 provides relief to a city or workers, like myself. The loss has been stag­ 1300- 1700 each day and sometimes in the county that might experience an ad­ gering. Of 100 workers now, perhaps only evenings from 1900 to 2100 when we would verse financial impact from the move of 20 are males, the rest are widows and chil­ hu!>k rice or do other light tasks. a football team from a stadium to an­ dren, whose husbands and fathers have ei­ "We could hear the radio sometimes as we ther been assassinated or who fled. Now, even were working, when the village chief would other area outside of the city where a poor farmers and coolies who were in the broadcast Radio Phnom Penh on a loud­ rule of the football league prohibits a wrong zone (the territory controlled by the speaker. new team from coming into the home former regime) are being eliminated. "We could ask permission to move from stadium. "A new method of execution began in late place to place, such as if you had a sick The impetus for this legislation was 1977. You would be called to the district parent to take care of. Such moves, however, the recent announcement by the owner office for 'education'. You never returned. were very rare." of the Los Angeles Rams that the team The Khmer Rouge take a dozen or so just System of discipline It outside the vlllage, beat them with sticks. will be moved to Anaheim in 1980. is " If a New Cambodian stole gomething to When they were beaten ne~uly to death, the the unquestioned prerogative of Mr. 'coup de grace' was administered-the dis­ eat, they disappeared, meaning that they Rosenbloom to make that decision. I embowelment of the near dead. The bodies were killed by the Khmer Rouge. If it was realize it was a difficult one. I also well an Old Cambodian, he was only reprimanded. are left, u·nburned, to let others know what New People are not forgiven. I had a neigh­ understand the financial attraction of might happen to you. Children are among the bor named Mr. Min, a New Cambodian who Anaheim particularly in view of the po­ slaughtered. I, like other peasants, have seen exchanged some clothes for potatoes in 1977. tential investment opportunities accom­ the cadavers. The Khmer Rouge said that Mr. Min stole panying the move. "I recall one very striking example. Fifty the potatoes. He was arrested and disap­ The legislation is not aimed at the Los persons were summoned . . . they were called peared." 'traitors' and taken just fifty meters outside Angeles Rams, their relocation is a fait my collective. There were women, children, Executions and human 1·ights accompli. The legislation is designed to and a few men. Ten Khmer Rouge tied t b eir "After I was a ricksha driver and farmer, provide some relief to fans of the Rams' hands behind them and shot them. Those the Khmer Rouge took over. They told me team and to help resolve many of the who did not die were bayonneted to death. to move to Stung in Kompong Thorn Prov­ tremendous problems associated with There were two children of the victims who ince. I then was told to move to Kompong filling the void which will result from were not immediately killed. They were 3 Cham, then again back to Stung. One day the move of the team from the Los An­ or 4 years old. I heard one Khmer Rouge the Khmer Rouge said that all men must cry, 'Hey, are these two children of the register with the district leader. When we geles Coliseum. group?' 'Yes.' They were bayonneted. arrived at the district office, the Khmer The Los Angeles Coliseum needs re­ "All the bodies were then heaped together. Rouge pointed a gun at us and tied us up. modeling. The Coliseum Commission has If they wanted us to move, they would just Later, the other peas~nts were ordered to proceeded to acquire State and Federal carry tl"lem to the fields, for fertilizer. have told us, not tied us up. This was in commitment to finance some $9 million "8 million Cambodians! Ridiculous. At October, 1977. I saw about 35 men tied up, all of whom I recognized as New Cambodians in structural repairs. If legislation re­ the most, t here are only 3 million, perhaps cently introduced in the California State only two million. The country is empty. because they had recently moved there. I A Buffalo tender told me there are 400 widows knew personally four or five of them. One Assembly is successful, it will provide the in a village formerly of 2,000 people." was a t eacher and the other four were farm­ first step in acquisition of necessary ers. Old Cambodians do not move. Five per­ funds for the repairs. Human, civil and political rights sons were tied wit h a single rope. Enroute "You cannot even speak of human rights in to be killed, t he connecting knot was at my Another concern that cannot be over­ Cambodia ... There is no such thing. Human position. I slowly untied the knot. When the looked is the economic impact on the rights are to work the earth and absorb the three Khmer Rouge were trying to hurry up area surrounding the coliseum. The area communist doctrine. In meetings, you can­ the group, I ran away and escaped. needs new business, not economic cis­ not criticize anytping. Political sessions are "I knew that the Khmer Rouge wanted to integration, particularly since it is sur­ designed only to support the Communist kill me, because after they tied us up they rounded mostly by families with low Party-in superlatives. No one believes their said, all of you were at least village defense incomes. The area is near USC and the words, except the Khmer Rouge, the illiterate forces (under the former government) and sports arena, therefore, the coliseum and the ignorant. not purely coolies and farmers as you claim. "Communism appeals to undeveloped In fact, this means everyone, since under facilities serve many purposes. peasantry, but once they have tasted that Lon Nol all people in the rural areas were The location of the coliseum and the soup, it is bitter indeed. The situation is organized into village defense forces as part city of Los Angeles, in particular, could hopeless. I believe that Cambodia is destined of the village organizat ion. I learned when be very attractive to another team. The to be erased from the map. There are no I was first taken to St ung not to admit that population could well support two teams. patriots now. There is nothing in the minds I had been in the military, since the soldiers There is a baseball team in Anaheim­ or hearts of Cambodians but vengeance. We who admitted it in 1975 were killed immedi­ the Angels-and Los Angeles still sup­ only want to avenge the horrors which have ately, even if they were foot soldiers or been perpetrated upon us. Cambodia will draftees. ports the Dodgers. disappear. The doctrine of the Khmer Rouge, "Among the 35 killed that night were 12- There will undoubtedly be a number of Pol Pot and. Khieu Samphan, is madness. 14 year old children." e of teams interested in locating in the They are haunted by the fear of treachery. Los Angeles area. Those teams will face We wish only that we had the weapons to insurmountable obstacles. The rules of take revenge." PROFESSIONAL FOOTBALL the NFL provide exclusive territorial rights to the franchise holder for a radius ACCOUNT OF SOUR CHHENG 1 Sour Chheng, 28, arrived in Thailand Oc­ Hon. Yvonne Brathwaite Burke of 75 miles from the stadium. Exceptions tober 13, 1977, from Stung District of Kom­ OF CALI FORNIA to the rules are granted Oakland, San pong Thorn. He decided to come to Thailand IN THE HOUSE OF REPRESENTATIVES Francisco, and Green Bay. Unanimous because. "I was tied up to be killed." He was support of the league is required for a a ricksha driver and foot soldier from 1973 Tuesday, August 1, 1978 waiver of the rule. to 1975 under Lon Nol. After that he be­ e Mrs. BURKE of California. Mr. The league's exclusive 75-mile-radius came a farmer. His account follows : Speaker, I have introduced two biUs to­ rule is effectively monopolistic. In the Conditions of life in democratic Kampuchea day relating to professional football. truest sense of the word, pro football is "For about four months of the year, when we were working the hardest building dams, H.R. 13613 provides relief to the fans a highly organized commercial enterprise we at e rice. We had about one and a half who have an interest in viewing football with many monopolistic features. As my tins of rice a day (375 grams) . The rest of and who would be required to travel an colleague, Lionel Van Deerlin, so aptly the time, we ate rice porridge, feeding about inordinate c!istance to attend games and stated several years ago during testi­ who are deprived of a team in their own mony before the House Select Committee 1 The refugee agreed to use of his name in city by virtue of the rules of the football on Sports, "Professional football is a bus­ e. public document. league. The city that loses a team and is iness. It is a business founded upon ter- August 1, 1978 EXTENSIONS OF REMARKS 23775 ritorial exclusivity which has been given file its conference report. In the absence team. Surely the law can encompass a the blessings of Congress." of legislation, the commissioner of foot­ concept so simple.• Professional football, however, unlike ball has agreed to adhere to the spirit of baseball is subject to antitrust laws. On the antiblackout law for the 1978 foot­ at least two occasions the NFL has been ball season. What happens after the 1978 LOGGERS NEED FAIRER TREAT­ granted exemptions from antitrust laws season we do not know. That is why I MENT BY THE IRS by Congress. First in 1961 enabling the have introduced this legislation which is then two leagues of restoring and protecting this versity of California, Berkeley; former chief, users of marihuana and hashish, the effect vital transportation link for smaller com­ department of psychiatry, University of Cali­ is t.he same as from tb e use of opiates : There munities. Swift action on the issue of regula­ fornia, Berkeley; New Bridge Foundation is an eventual total loss of libido. tory reform will allow airlines to make im­ Drug Rehabilitation Center, Berkeley. HEATH. I agree that there is a certain portant investment decisions for new equip­ James E. Reeves, M.D., Moderator; family novelty in the sexual experience with the ment and facilities. It also will allow our physician, San Diego; member, Patient Care early use of marihuana. After all, this drug airport system to expand to meet the needs Board of E'iitors. does alter visual, auditory, and tactile per­ of the times. Bruce W. Frazer, Writer. ception. But as use continues, the person becomes so preoccupied with his internal After having followed the three-year de­ DISCUSSION shifts in attention that he becomes less and bate on airline regulatory reform closely, the MoDERATOR. For several years now, since the less interested in sex. National Governors' Association and the Na­ use of marihuana has become commonplace FRAZER. Dr. Heath, is there evidence of tional Association of State Aviation Officials and the use of hashish at least common in brain deterioration corresponding to clinical have testified in support of major reform many places, we've been seeing the term changes? proposals. We are convinced that the con­ "amotivational syndrome" in the literature. HEATH. We have conducted extensive ex­ cepts of reform as embodied in Senate 2493 Just what is meant by that term? periments with rhesus monkeys to deter­ and in the National Governors' Association's MALCOLM. Among moderate and heavy mine if brain damage that would account resolution of February 28, 1978 on airline users of cannabis, we have repeatedly noted for the clinical changes we see in humans regulatory reform will materially benefit our a loss of ambition, of drive, of the desire to does result from the use of marihuana. I citizens and our economy. do things. They tend to live for the moment­ can say unequivocally that significant The nation's governors know of and are right here, right now-and they seem not changes, which are permanent, do occur. grateful for the many hours of study and to care very much about the consequences MoDERATOR. Why were monkeys used? del1beration that your Committee has de­ of their actions. They engage in magical HEATH. We used subhuman primates be­ voted to this subject of major importance thinking and tend to reject many of the cause their brains resemble the human to the nation. We are confident that these values of the larger society. They condemn brain. We could not carry out with humans extensive efforts will lead to additional im­ competitiveness and exhibit no aggressive­ the intricate control studies that would provements and pragmatic solutions to the ness. give us solid data. For a while, it seemed August 1, 1978 EXTENSIONS OF REMARKS 23779 that every report that came into the medical are more likely to use, or have used, both FRAZER. Quite a point has been made of the literature offering proof that there were licit and illicit psychoactive drugs." fact that alcohol is water soluble, while THC changes in human brain function and be­ The more heavily a user smokes mari­ is fat soluble. What does that difference por­ havior as a consequence of the use of mari­ huana, the greater the probability he has tend? huana was challenged with allegations that used or will use other drugs. That's my ex­ PowELSON. Alcohol is burned or excreted other agents, in addition to marihuana, had perience, and it's the experience of most rapidly. Once marihuana is taken into a cell, been used or that the subjects might have clinicians I know. it lingers on and on. Professor W. D. M. Paton shown signs of pathologic damage even if POWELSON. I agree. of Oxford, one of the world's most respected they had not used marihuana. HEATH. As a matter of fact, the National pharmacologists, says of marihuana: "It has MODERATOR. As I recall, there were some Institute on Drug Abuse recently issued an Octanol; water partition coefficient of questions about the high dose levels you brochures referring to marihuana as one of about 6,000:1, over 10,000 times that of alco­ used. Can you comment on this? the "gateway" drugs. The use of marihuana hol. Corresponding to this is a low solubility HEATH. Yes. There were misunderstand­ can become a. stepping stone to other drugs, in water. Its fat solubility is greater than ings in this respect, but we have supplied for rather simple reasons; Use of pleasure­ that of industrial solvents and is exceeded data showing that our moderately dosed inducing agents tends to lead to increased only by substances like DDT." • animals received only 5.5 mg of delta-9-tetra­ desire for the "pleasure" derived. This leads to The half-life of marihuana is about five hydrocannabinol (THC) per month per kilo­ increased use and, often, increased dosages. gram of body weight, a level that corresponds days. If you only smoke once a week, you're Marihuana doesn't supply the brain with constantly adding to the increments in the to human consumption of about one mar­ the fundamental chemicals that produce ihuana cigarette per day. We also injected brain and wherever there is fat in the rest pleasure, but it stimulates other chemicals of the body. And, of course, there is fat in all THC intravenously, and the blood levels we in the brain that do so in turn. And with pro­ built up by this method were essentially the cell membranes. same as the blood levels in humans who use tracted stimulation, these other chemicals HEATH. That's an accurate statement. How­ marihuana moderately to heavily. are used up or lose their strength. So, to ever, the solubility difference, or partition FRAZER. Dr. Heath, your study stressed the maintain the "pleasure" feeling, the system coefficient, between THC and alcohol is vast; importance of planting electrodes deep in needs to be stimulated more strongly. This THC is actually around 5,000-50,000 times the brain. Why is this? can lead to the selection of something more soluble in fat than is alcohol. Of course, HEATH. The scalp electroencephalograms stronger to do the job. It's a vicious cycle. the cells that are highest in fat content are did not allow us to detect changes at deep FRAZER. Is it correct to infer, then, that in the brain and gonads, so this is, of course, brain sites such as the septal region, amyg­ marihuana is habituating? where THC is absorbed and where it's re­ dala, hippocampus, and in the hypothalamus HEATH. I think it is. Certainly depend­ tained, and it does affect the functioning or midbrain, where major changes occur ency occurs. principally of these two organs. with altered emotion and thought. We PowELsoN. I think tolerance occurs, as FRAZER. What does the panel feel about planted electrodes deep in the brain of the well. marihuana's classification as a "soft" drug? animals so that we could closely monitor HEATH. From a clinical viewpoint, toler­ MALCOLM. Use of the adjective "soft" changes in the brain function at the sites. ance indeed occurs, but I think the tolerance w1 th respect to marihuana has annoyed me MoDERATOR. Specifically, what changes were is the result of the depletion of one's en­ for many many years. In our society, we un­ noted? dogenous transmitter of chemicals. derstand' "soft" is benign. Because "soft" HEALTH. In one group of animals, we main­ PowELSON. And yet, it's often said by the drinks contain no alcohol, we say they are tained moderate levels of THC (administered National Organization for the Reform oi harmless, whereas "hard" liquor may pos­ by smoking and by intravenous injection) Marihuana Laws t hat there is no evidence sibly be dangerous to health. With the accu­ for six months. After three months, we found of habituation or tolerance! mulation over the past few years of the in them significant changes in the septal MoDERATOR. Several of the physicians as­ psychological, social, and physical evidence region, hippocampus, hypothalamus, and sociated with efforts to legalize marihuana of marihuana's potential harm, it seems ab­ midbrain, which are associated with emo­ have said they don't believe it causes addic­ solutely shocking to · use "soft" with respect t ional behavior, particularly pleasure and t ion or physical deterioration. Would some­ to marihuana. motivation. We observed the animals for an one like to comment on this? PoWLESON . A correlative point is that additional six months after they were totally MALCOLM. One of the great virtues of mari­ marihuana itself is very beguiling. The first free from exposure to THC, and the reported huana, in t he opinion of its proponents, is time you use it, there may be no effect at all; changes remained. We sacrificed the animals t hat you can smoke progressively less of it t he first few times, the effects often feel and and did histopathologic studies by electron and continue to get a similar effect. They seem benign. In contrast to "speed," for in­ microscopy, which showed changes in the feel that the drug's tendency to be stored in stance, which really hits with a jo1t, or LSD, synapse and in the viscid substance (the body tissues for many hours, or even several which "sends you on a trip," marihuana is rough endoplasmic reticulum) in the cells. days, accounts for reverse tolerance: You relatively 1Jenign. But by the time you've POWELSON. That substantiates what I have can smoke less and still get stoned. accumulated enough THC in your brain to felt for a number of years: t hat there are­ MODERATOR. Is there any validity in that really have the marihuana experience, you've t here have to be-pathologic changes in the view? also impaired your ability to judge it effec­ areas of the brain that have to do with MALCOLM. Lots of other students of the tively. It's a downward spiral. Marihuana pleasure. I've also observed, as have many subject have shown that the drug behaves may well be the most dangerous drug, pre­ others, that after sustained use of marihuana similarly to most drugs, and that real toler­ cisely because of the combination of the so­ these changes seem to be reversed very slow­ ance actually occurs. Psychic habituation un­ cial attitude that it is "soft" and its usual ly-if indeed they are reversible at all. doubtedly occurs; t hat always happens easy introduction or indu ction. MoDERATOR. Dr. Malcolm, what has been whenever a person repeats an experience he MoDERATOR. Is smoking marihuana in your experience? regards as enjoyable. Recalling that effect fact more harmful to the lungs than smok­ MALCOLM. I , too, h ave been st rongly im­ ing tobacco? when he is free of the drug, he repeats it. PoWELSON. Yes. There is good evidence pressed by Dr. Heath's studies. I have ob­ That's psychological dependence-a very im­ served what would appear to be signs of or­ portant element in the addictive process. of that. The Leuchtenbergers in Switzerland ganicity in people who have used marihuana used tissue cultures to show that smoke from fairly heavily for several years. Dr. Health MODERATOR. Dr. Heath, do you feel that marihuana cigarettes is more carcinogenic revealed a really striking pattern from im­ m arihuana is more dangerous than alcohol? than tobacco cigarette smoke. And, the way planting elect rodes deep in t he brain, where­ HEATH. Tpat's a tough question to answer. marihuana is smoked makes it much more as other st udents of the subject reported There is not yet enough completely objective dangerous: It is inhaled and held in the absolutely no superficial changes on scalp data comparing the effects of these two lungs, so i:t is forced into the alveoli, where electroencephalograms. And yet we know it's agents. It has been my experience, based on carbon particles in the smoke tend to re­ in the hypothalamus and in the midbrain, objective fi ndings in our laboratory, that main. Also, a recent study shows early t he limbic system of the brain, t hat major marihuana is probably more potentially changes in bronchial sputa that are precan­ effects are taking place. The changes he has damaging to t he brain than alcohol, and po­ cerous in appearance. We probably won't noted would account for the changes in per­ t entially more damaging to health. Neither know the effect on bronchial cancer for some ception and the short attention span we see drug, of course, is to be recommended, be­ time, because we have only been using it in in long-term users we have studied. ·cause bot h are potent ially damaging. But heavy doses in this country for about 10 MODERATOR. Does t he panel feel tha.t people marihuana, because of the high solubility years. But I am sure it will show up in sta­ who Emoke marihuana are rendered more quotient of its active ingredients, has a pred­ tistics. susceptible to other illusionogenic drugs? ilection not only for getting into the brain FRAZER. Do any of you feel that the MALCOLM. This is very much my cilnical more rapidly, but for remaining in the brain effects of marihuana are making i't relatively impression. It's in line with a number of much longer than alcohol. It has a more pro­ more potent drugs related to it in terms of found effect on brain function as a result. effect. A significant number of people who We made comparative short-term studies in • U.S., Congress, Senate, Subcommittee on try marihuana go on to LSD or parachloro­ which we gave some animals marihuana and Marihuana-Hashish Epidemic and Its Impact phenate (PCP) . As the Secretary of Health, some alcohol; marihuana apueared to affect on U.S. Security. Hearings before the Sub­ Education, and Welfare reported in 1974, brain function, and possibly brain structure, committee of the Committee on the Judici­ "Marihuana users, as compared to nonusers, to a greater extent than alcohol. ary, U.S. Senate, 1974. 23780 EXTENSIONS OF REMARKS August 1, 1978 more difficult to diagnose psychological ill­ Orleans-! have on my floor right now two mits a person to express, without much ness, schizophrenia, or other types of men­ patients who are very seriously ill with restraint, whatever he thinks his peers will tal illne~s? PCP psychosis. Users in this area are lacing accept. HEATH. I don't know that marihuana marihuana with PCP and with cocaine. It's MoDERATOR. What is the feeling of the panel masks psychological abnormality or neces­ markedly potentiating the effects and intro­ regarding the laws against marihuana? Will sarily makes it more difficult to diagnose ducing disastrous effects on behavior. they be relaxed, enforced, or changed? schizophrenia, bUJt I think marihuana very MoDERATOR. What about your area, Dr. HEATH. I think we can agree that legisla­ frequently precipitates acute psychotic re­ Powelson? tion should be enacted to deter anything action. POWELSON. In Berkeley they use PCP and that is harmful. However, laws that make it PowELSON. It's creating its own illness. LSD, sometimes even strychnine! a crime to possess marihuana haven't mark­ The organic signs in heavy smokers are quite MODERATOR . In Toronto? . edly reduced its usage. Other legally sup­ apparent to anyone who's u~ed to making MALCOLM. In Toronto, there is a good deal ported steps, perhaps an educational cam­ this type of clinical differentiation. of evidence now that various things, like paign to make known the facts about this MALCOLM. Marihuana is clearly antithera­ phencyclidine-and of course, LSD-are be­ drug, will have greater effect. I can't foresee peutic. For someone who has an underlying ing added to marihuana. Strychnine has legislation that will deter the use of this schizophrenic illness, continuous use of been identified here, too. It's an insidious. harmful agent, but I think a head-on clash marihuana certainly isn't going to assist re­ dangerous development. over whether its use should be made a crim­ covery. In my opinion, psychological prob­ MoDERATOR. Does the feeling of hopeless­ inal act really tends to detract from the lems would be perpetu-:tted and further com­ ness that many clinicians are seeing among basic issue. pounded by use of the drug. students, particularly younger students, re· MALCOLM. A very important statement can PowELSON. Psychotherapy in any ordinary sult in an increased use of marihuana? be made here: People have set up a kind of sense is impossible with those who continue POWELSON. Hopelessness is often given as balance to weigh the amount of damage to smoke marihuana. a reason for youngsters using the drug, but caused by the drug itself against the damage HEATH. It's impossible to carry on effectin' it does not seem to me to be a valid reason. caused by laws designed to control mari­ therapy when you're competing with mari­ MODERATOR. Do you feel that the increase huana use. Many feel that our laws are too huana. in leisure time, ,particularly for young peo· strict, and people who have gone out of FRAZER. Dr. Heath, in cultures where mari­ ple, may be causing an increase in the usP their way to liberalize the law have tried huana is used regularly, is there any hard of marihuana? concomitantly to show that the drug is evidence of lasting brain d-:tmage? MALCOLM . That seems to be a contradic­ benign. It seems to me that we might all HEATH. I know of no studies that answer tion. First, we speak of hopelessness, then agree the law has been too heavy, particu­ that completely objectively. go immediately to one of the most remark­ larly with respect to first offenders, or people POWELSON. The studies of M. I. Soueif at able developments of recent times: the in· in possession of small amounts of mari­ the University of Cairo, although purely creased amount of leisure. Hopelessness and huana. However, it would be absolutely mis­ psychological, certainly suggest changes in leisure hardly go together. There have been chievous to give the impression that the straight-line correlation with the amount far more hopeless periods in the history of drug is benign. We have to have a strong of marihuana or hashish used. our society; for example, the Depression of educational campaign to show that the drug MALCOLM. To me, Soueif's most important the 1930's afflicted a great many ,people is dangerous, even as we reduce the power observation w~s that the brightest and best­ with a genuine sense of ropelessness. There of the law with respect to first-time users. educated people showed the greatest detri­ have been other such periods, including MODERATOR. Our local schools tell me that ment from using hashish. The people with various wars. Compared to those times, they would like to have suggestions from the least education and the least native in­ the present seems a rush toward pleasure. people like you regarding training programb, telligence showed the least effect. I think people seek ,Pleasure and stimula­ particularly for students, medical personnel, MoDERATOR. Quite a bit has been said in tion from marihuana not because they feel police, and parents. Would the panel give a favor of using marihuana in the treatment hopeless, but because they simply want the short opinion as to possible ways to lessen of glaucoma. Would anyone like to comment? pleasure of "a high." the marihuana problem in this way? What MALCOLM. To me the whole approach is PowELSON. I am very suspicious of the could the family doctor do in this regard? fraudulent. Other preparations just as valu­ sociologic explanations! The Egyptians have PoWELSON. My experience is that parents, able to the treatment of glaucoma do not neither wealth nor leisure, and they have a teachers, and certainly police officers are bring about intoxication. tremendous hashish problem. really anxious to hear all the solid evidence MoDERATOR. Any other comments regard­ MoDERATOR. Is the comparatively low cost that's available, and they are very grateful ing the "therapeutic" use of marihuana? In and availability of marihuana a great fac­ and often surprised when it is presented. S1n Diego, the courts just recently author­ tor, a minor factor, or no factor at all? Wherever I talk, I ask parents and kids to ized the uEe of marihuana for a terminal PoWELSON. It's certainly a major factor. come together, to share a common body of cancer patient. Marihuana is readily available. In California knowledge and try to reach a mutual under­ PoWELSON. Was the purpose to keep him or almost any place in the U.S., you can grow standing of the facts. I've found that it is stoned to prevent vomiting? your own. In fact, there's a bill before our really quite possible to achieve understand­ MODERATOR. Yes. state legislature now that would make it ing among users and nonusers, just as there MALCOLM. LSD has been used for years for legal to grow up to three plants. can be understanding among drinkers and that purpose, as well. HEATH. From the standpoint of a peuro­ nondrinkers. The early training programs HEATH. One of the reasons marihuana was phyEiologist, I'd like to address the question that came from state and federal agencies tntroduced in the treatment of cancer w ::~ s of the effect of increased use of drugs and were uf little practica: help. The ones I saw supposedly to relieve nausea and vomiting, also the question of whether the use of sounded as if their intent was to teach kids but double-blind studies proved it was no marihuana leads to an increased use of the language of drug usage and how to more effective in relieving nausea and vom­ stronger pharmacologic agents. I think more apply it. iting than other well-known agents. leisure plays a big role in the inclination MoDERATOR. Any pearls to pass on to family PowELSON. There's no known clinical use to take up the use of drugs. Fatigue after doctors who have to deal with their school for marihuana for which there isn't a better strong physical activity sets us up for pleas­ boards about marihuana? What can be done? drug already available. ure in relaxation. With so much leisure time, MALCOLM . We must depend on education, HEATH. That's correct. we're not expending energy in healthy phy­ but we must also realize that the person MODERATOR. What therapy does the panel sical activity; we're getting less pleasure who is habituated to marihuana will re­ recommened for the patient who has n.n from competitive sports, for example, than ject all evidence that marihuana is harm­ overdose reaction to marihuana? we did in the past. We've become spectator ful. We still have to reach a large popula­ MALCOLM . This "overdose" could be highly sportsmen, and, as a consequence, we need tion that hasn't made up its mind to use relative. With marihuana, overdose in the to simulate the feeling of exhilaration in marihuana, and I think that education. when ordinary sense of the word occurs very, very other ways, and the tendency is to turn to it is put intelligently and sensibly, can be rarely; the blood level of THC can go ex­ drugs for this. very effective. We should not despair just tremely high without being lethal. Some peo­ MoDERATOR. Are the social effects of smok­ because the news media-and a lot of es­ ple have a panic reaction to a relatively small ing marihuana grossly unpredictable or teemed people in all walks of life-have gone amount of marihuana. This could be regard­ reasonably predictable? out of their way to suggest that the drug ed as an overdose in some patients. I think MALCOLM. They vary according to the is benign and wonderful and worthy of lib­ one of the diazepine tranquilizers might be milieu in which the person smokes, and ac­ eration. There is good material to hand out, appropriate for a person suffering from in­ cording to what the individual perceives as but no amount can substitute for formal tense anxiety. Marihuana problems lie in acceptable behavior for his particular and informal appearances by well-informed areas other than the possibility of lethal group. In some parts of the world, it is family physicians. overdose. suggested that marihuana may, in fact, MoDERATOR. Dr. Malcolm, at what grade MoDERATOR. In California, marihuana facilitate the expression of aggressive or dis­ level would this be best? purchased on the street fairly often con­ ruptive behavior. However, in this hemi­ MALCOLM. It seems that young people are tains PCP, which users call angel dust. It sphere, we generally accept the idea that peo­ being exposed to marihuana at early ages, often triggers ,PSychosis. Is this problem oc­ ple become more detached, more passive and but I wonder whether there is much point curring elsewhere? quiet. This is the behavior generally seen. I in talking about it below the level of high HEATH . It's a major problem here in New think marihuana lowers inhibition and per- school. Unfortunately, teachers are frequent August 1, 1978 EXTENSIONS OF REMARKS 23781 proponents of marihuana use. Talk about Overall I think the IRA program has quire complex reporting as the life in­ marihuana can make youngsters curious and been a good thing. It has brought a surance portions of the contract, are not excited about trying it before they really greater awareness of retirement sav­ tax deductible. understand the significance of important statements about it. Judgment and intelli­ ing to a far broader population. About H.R. 13619 would require any future gence generally come into play when kids 2 million persons have now begun are­ IRA insurance contract to provide for are a bit older. So I would say high school. tirement plan that they might not other­ flexible premiums. Taking a "real world MoDERATOR. Mr. Frazer, have you any sug­ wise have had. view," the case is made, however, that gestions about educational or training pro­ At the same time, there have been this style of contract is the only product grams? problems. Our hearings in November and by which many lower income persons, FRAZER. The American Council on Mari­ a goodly portion of subsequent hearings who may put aside no more than $200 to huana and Other Psychoactive Drugs, at 521 Park Avenue in New York City, provides some concentrated on the fact that prospec­ $300 a year in .their IRA, will be reached. excellent educational material, particularly tive IRA participants were not being Whatever the solution, this certainly is the booklet, Marihuana Today, by Dr. George fully informed of the requirements for an issue that will have to be thought K. Russell. Council member Gabriel G. Nahas, participation in an IRA, of the conse­ through carefully if the IRA is to be MD, also has a book, Keep Off the Grass, quences of not meeting those require­ made attractive to this group. I hope the that is excellent. ments and of the actual rates of return committee will approach this IRA insur­ PowELSON. I often recommend it. on some IRA products. Although there ance problem with an open mind. HEATH. I have given it to school boards and has been improvement, there is still teachers. The committee and the House should FRAZER. Dr. Malcolm, I've heard that your much to be done in this area. The IRA move speedily on this legislation. Many book Craving for the High is excellent, but buyer's best guide remains, "Shop portions of it redress legitimate griev­ I haven't been able to obtain a copy. around". There also are information ances which need immediate attention if MALCOLM. Well, thanks. It's available only booklets which now are of help to pro­ we are to keep the situation from getting in Canada, but it can be obtained froL. spective IRA participants. The Internal worse. Other portions of the bill seek to Simon & Schuster, Canada, Markham, On­ Revenue Service has publication 590, make the program stronger and more tario. which explains the legal requirements equitable. After reviewing this program PowELSON. Before we end, I'd like to add for participation in an IRA and the con­ for 3 years, it is a proper time to act.e that it is important to remember that leg­ sequences of not meeting these require­ islation is a form of education, and that when a legislature discriminalizes and, in ments. The Federal Trade Commission fact, legalizes marihuana, it also makes the and the Pension Benefit Guarantee Cor­ THE SNAIL DARTER very powerful educational statement, "Mari­ poration both have consumer guides out huana is not a very bad drug." Once this hap­ on how to shop for IRA and on the pit­ pens, it's almost impossible to reverse lo­ falls to avoid in various IRA mediums. HON. JOHN D. DINGELL cal opinon. We're having enough trouble The legislation I am sponsoring goes OF MICHIGAN reversing ourselves on cigarettes and liquor. beyond these measures to try to provide IN THE HOUSE OF REPRESENTATIVES We should think long and hard about legal­ ly making marihuana anything but a harm­ greater equity and reasonableness in the Tuesday, August 1, 1978 ful drug.e IRA law itself. In the course of our hear­ ings many technical matters surfaced. • Mr. DINGELL. Mr. Speaker, those of These include: discrepancies between my colleagues who have attempted to INDIVIDUAL RETIREMENT PLAN the contribution deadline for IRA's and come to grips with what the critics of TECHNICAL CHANGES ACT OF 1978 for other similar programs; complicated the Endangered Species Act of 1973 con­ and restrictive regulations and harsh sider to be the "shortcomings" of the penalties for even the most inadvertent statute are discovering there has been HON. J. J. PICKLE a gross exaggeration of the "conflict" OF TEXAS excess contribution; restrictive partici­ pation requirements which prohibited a associated with the implementation of IN THE HOUSE OF REPRESENTATIVES person from contributing to an IRA for the act. The case of the Tellico Dam and Tuesday, August 1, 1978 an entire year even if they had partici­ the snail darter is a prime example. There is a growing realization that the e Mr. PICKLE. Mr. Speaker, I am pated in a qualified plan for only 1 day of that year; roadblocks to flexibility Tellico project was not necessarily pleased to sponsor H.R. 13619, the Indi­ stopped by the presence of an "insignifi­ vidual Retirement Plan Technical in allowing taxpayers to rollover distri­ butions from a qualified plan into an cant" 3-inch fish but, to the contrary, Changes Act of 1978. I am especially the completion of a questionable project pleased that my good colleagues, SAM IRA and in changing IRA products; ex­ tremely harsh penalties for failing to was prohibited from extinguishing a GIBBONS, DICK GEPHARDT, BILL STEIGER rather important link in the biological and BILL FRENZEL and I have been able take sufficient funds out of the IRA in a timely basis when retirement age is chain of life. to agree on the importance of this effort. It is, indeed, unfortunate that a hasty I appreciate very much their support and reached even when this failure was not committed in an abusive manner; un­ reaction by the press pitted a rather leadership in the IRA program. necessary complications in reporting on "small" looking species against an ap­ In November 1975, my subcommittee one's IRA to the Internal Revenue Serv­ parently "large" TVA project. But, I began an extensive investigation into ice, and problems with IRA products believe that the printed and visual media the progress and operations of the new which require fixed and regular pay­ is now taking a much closer and realistic individual retirement plan option pro­ ments regardless of the person's con­ look at the actual success of the En­ vided for in the Employee Retirement tinued eligibility for an IRA. dangered Species Act and more import­ Income Security Act of 1974. This pro­ H .R. 13619 provides solutions for these antly at the profound consequences of gram was a new step for the Nation-an problems. species extinction. The much larger is­ attempt to provide incentive and oppor­ Obviously we will continue to explore sue of whether mankind can afford to tunity for individuals not covered in these and other alternatives through compromise one species after another qualified pension plans to build their hearings on this measure. In so doing, we at the expense of project development own retirement savings. must, I think, keep foremost in our minds is now-and right so-being seriously Full participation in qualified plans is the need to keep the program simple as discussed. I therefore insert for the the most preferable means of providing well as fair. We will also want to look in RECORD what I consider to be a respon­ for retirement . .And this is something particular at the problem of IRA prod­ sible treatment of this issue by a news­ which has to be kept in mind in any ac­ ucts which require fixed and regular pay­ paper in, of all places, an urban setting­ tion in the individual retirement account ments over a long period of time. These Detroit, Mich. I think you will find the field. We do not want anything we do products, typically an endowment or following article from the July 26 issue regarding IRA's to hamper the long­ fixed premium annuity contract, reduce of the Detroit News to be enlightening term growth of healthy qualified plans. investor flexibility, face the investor with as well as instructive. On the other hand, as with any new pro­ severe penalties and often loss of much [From the Detroit News, July 26, 1978] gram, there is some adjustment and of his investment should he become in­ THE SNAIL DARTER HAS A LESSON FOR Us some displacement. We ought not, there­ eligible for an IRA, or should the amount (By J. F. terHorst) fore, criticize IRA's on those grounds he is allowed to contribute be reduced WASHINGTON.-It is cleverly said, in our alone. through a reduction in income, and re- competitive world, that it is not how we 23782 EXTENSIONS OF REMARKS August 1, 1978 play the game, but whether we · win or lose. have devastated much of America's wilder­ still be flying the Mexican flag, and the All is fair in love or war, and presumably in ness. We have steadily reduced our agricul­ American flag would never have been planted business and politics. Perhaps that accounts tural acreage to a point where the production on the Moon. for Congress' grim determination to save of sufficient food is becoming critical. And I'm not arguing with you as a Re­ mankind from the snail darter. Mankind worries a lot about tlle dangers publican vs. a Democrat. You know I fought That evil little minnow dared to stand, if of nuclear war, and that is a proper worry. against Ford and Kissinger harder than I that is a permissible word, in the path of But perhaps we ought not to ignore the fight you on this point. Incidentally, there's progress. It stopped the Telllco Dam. But, warning of the snail darter. America may a pretty good lineup of your fellow Democrats apparently, that was not the worst of the have more to fear from the bulldozer than on the same side of that Alamo line-Ted darter's deed. Its unforgivable act was in from the bomb.e Kennedy and Pell, O'Neill and Brademas, cunningly avoiding discovery until the $119- among them. mlllion project was nearly completed. You remember that the only diplomatic The U.S. Supreme Court awarded the first TEX McCRARY COMMENTS ON failure Kissinger admits was in Cyprus; and match to the darter. Now Congress is chang­ TURKISH ARMS EMBARGO now Carter bolts the screw. ing the Endangered Species Act to allow I know the argument you once used; you man to get even. The Senate already has told me you saw with your own eyes what voted 94-3 against the darter and the House HON. OLIN E. TEAGUE our electronic surveillance (now redundant) will certainly wallop it again in coming days. OF TEXAS from Turkish bases tells us about the What Congress proposes is a seven-member Soviets. committee of federal officials to referee fu­ IN THE HOUSE OF REPRESENTATIVES Two rebuttal points about that, Tiger: ture standoffs between federal projects and Tuesday, August 1, 1978 Ever since Stalin smiled at Truman at Pots­ endangered species. And if the impasse can­ dam, and said he knew as much as we did not be solved by arbitration, then federal • Mr. TEAGUE. Mr. Speaker, under about atomic bombs . . . ever since Sput­ projects may be exempted from heeding the leave to extend my remarks in the REc­ nik and their H-bomb and their lead in the law. ORD, I wish to include a letter which I race for Fusion, the Soviets have rarely ever This amounts to more than a. mere change received today from my good friend Tex lost a point in the deadly game of matching in the rules of the game. It practically McCrary concerning the Turkish arms wits against us. amounts to decreeinf; that the snail darter embargo. I believe each Member of this They let us see what they want us to know. never will win another contest with some­ And they find out about us what we don't thing as important and as costly as a. dam body will find it interesting as I am sure the writer is well known to all. want them to know. on the Little Tennessee River. Ditto for the They know what we've got, and thanks Pedicularis Furbishiae (Furbish's lousewort), JOHN REAGAN McCRARY, to the Gallup and Harris polls, plus "signals" thE: scraggly but rare sapdraggon that had New York, N.Y., July 28, 1978. like surrender to the Turks, the Soviets know the temerity to grow in the path of a. $700- Hon. OLIN E. TEAGUE, precisely how far they can push us, in milllon hydroelectric project in Maine. And House Office Building, SALT or Africa, before we'll stand our ditto for almost any of the 677 plants, birds, Washington, D.C. ground. animals and fish or.. the endangered species DEAR TIGER: My respect for you is only A lady with guts and gumption to match, list. topped by my affection, but I believe you Mary McCrory, said it like it is, when she What Congress ignores in its hasty rush are dead wrong in, first, having followed wrote: to ar.1end the 1973 act is that it has worked Kissinger/ Ford, and now Zbigniew/ Carter, in "If he would put as much pressure on rather well. The Interior Department has surrendering basic American principles to the Turks as he is putting on Congress, been able to resolv~ the problem in nearly the Turks' brazen and continuing "kara­ Jimmy Carter would have his repeal of the 180 cases in which a federal project threat­ borse." in Cyprus. Turkish arms embargo handed to him on a ened the destruction of rare flora or fauna.. In Greek, the word is "ekviasmos". In the silver platter. The President is the chief lob­ Only a handful of confrontations has gone American language, the word is, "Black­ byist for the dubious cause ..." to court, the Telllco Dam being the most mail!" The whole of her indictment is attached. notorious. Now this successful procedure is When I called you to check your feelings, I am sure you have read it, but please read it about to be rendered meaningless. you said, bluntly: "Tex McCrary, you know again. All of it. Slowly out loud. Please. It is imaginable, of course, that Sens. John me by now-I'm going to vote again like I The Carter apologists argue that "Turkey Culver of Iowa and Howard Baker of Tennes­ voted before, to lift the embargo. I'm not has been punished enough" by the embargo. see did no-c have that in mind when they pro­ voting for the Turks, or against the Greeks. But as Mary McGrory reminds you, that em­ posed the blue-ribbon board of bureaucrats I'm voting as an American!" bargo was never truly enforced by Kissinger as a means of putting "fiexibll1ty" into the Will the honorable gentleman yield? and Ford, nor by Carter now. act. But the fact is that promoters of fed­ Thank you. Tiger, you know me by now, too. Remember when President Kennedy and eral projects now have another way of con- · I don't argue against the Turks because I am Kruschchev stood "eyeball-to-eyeball" dur­ quering any rare thing that happens to be a Greek-American, which I am not, or be­ ing the Cuban. Missile Crisis, in the easier in the way. They can filibuster the existing cause I work for the Greeks-! used to; but years before Cuba herself became a Soviet consultation process in the Interior Depart­ they fired me because I argued with them, miso::ile, and it was not Jack Kennedy but ment and take their case to the new, politi­ too. Kruschchev who "blinked" and backed cally attuned seven-member board. With the I argue with you as a fellow Texan, private down. right amount of furor over "jobs" and "bene­ citizen, Republican, from a State which flew Well, when Dr. Kissinger faced the Turks, fits" they will have a. better than even chance five flags on the way to the American flag he winked; and when President Carter faces of getting an exemption to the act. Hooray we fly now. them now, he just shuts his eyes. for progress! Let's skip The Rule of Law, basic to Ameri­ And again, I've got nothing really against This is not to say that the Endangered ca, almost unique to America-repealed by the Turks; they're as shrewd and tough Species Act is without flaws. It has several, Dr. Kissinger and President Carter. Let's traders as Yankees used to be. They play the worst one being that it applies only to skip the broken campaign promises by can­ the Kremlin against the White House bril­ federal projects that threaten the habitats of didate Carter in 1976, which erode the cred­ liantly, like the children of divorced parents. nearly-extinct forms of life. It would seem ibility of another President. Let's forget for As a nation, they are bankrupt, far more that rare birds, animals, fish and flowers de­ Cyprus the Human Rights which President qualified for welfare than warfare-but serve equal protection against state and local Carter so selectively preaches for the rest of that's not their fault. We push arms onto projects, and especially private projects. It the world. the Turks, harder than Turkish opium was was one of the latter, not some federal ven­ Let's just go back a couple of centuries to ever pushed into America, arms they cannot ture, that recently wiped out a rare Western a battlecry that most Presidents and all afford, or use, except in Cyprus. pupflsh. rulers in every language have always under­ We have tried to make them a nation of It is not hard to rate arguments in favor stood, in an American accent: mercenaries, on grounds that somehow they of progre~s and against what some in Con­ "Millions for defense, not one penny for might be a brief hurdle for the Red Army. gress have called "this environmental ex­ tribute!" cess" of protectionism for endangered spe­ That's what this embargo is all about, What idiocy is that! You watched the Ger­ cies. The snail darter, the Furbish's louse­ Tiger. President Carter talks a lot about man war machine at work; I was the first wort, the El Segundo butterfly, the whooping "sending signals to Moscow". What kind of into Hiroshima after the A-bomb fell. Both crane and the Indiana bat, to name a few a signal will you be sending, when you vote of us know what the Soviets can and would threatened species, probably do not add a to lift an Embargo that is rooted in Ameri­ do in a crunch, with . nuclear weapons, or penny to anyone's pocket or to the gross na­ can tradition and Law, NATO treaties, and with their tidal wave of traditional hard­ tional product. Dams are necessary in water­ UN resolutions? . ware. short areas. So are hydroelectric plants and "Push us hard enough, and we'll back And why this continuing bribing, begging, airports and highways. down." That's the signal you're sending-to feckleo::s tilt to the Turks, with no concern But we do not need a divine revelation to Moscow and Havana, to highjackers and ter­ for the damage that does to an ally like be aware of the steady, constant encroach­ rorists and blackmailers, all over the world democratic Greece, tested in two wars, and ment we have tolerated or encouraged on in every language. in the battle against Communism between our own human habitat. We have pollution From the Alamo to your Space Program, if those two wars. in our lakes and streams and in our air. We that had been America's signal, Texas would On what historic or combat evidence does August 1, 1978 EXTENSIONS OF REMARKS 23783 Nixon's General Haig argue that the Turks "Turkey and Greece have been at each "N::>" on rollcall No. 617, on an are more important or reliable than the other's throat for centuries on Cyprus," a Greeks to NATO? White House official explained. "Our na­ amendment that prohibits the use of Even high school students know whose tional interest is involved in NATO." funds by the Clvil Rights Commission to side the Turks were on in the two World Two prominent Senate doves, Frank influence the passage or defeat of legis­ Wars. Church and George McGovern, have been lation before Congress or State legisla­ And as for their combat record in Cyprus, won over to this "realistic" approach, but tures, except when the Commission is where they used American weapons, planes ot:J. ers are demanding to see a few cards from requested to give an opinion.• and tanks and landing craft, even in Cyprus the Turks before they throw in their hands. against little more than Home Guards and Why would the Turks be any more w11ling civilians, their brutal "Operation Atilla" was to bend with U.S. arms than without them? WAUKEGAN, ILL., HITS DRUG a fumbling fiasco. The embargo was never total. We shipped PEDDLERS But to the victor still "belong the spoils." them supplies through the back door of an We pressure the Israelis to surrender what overseas Pentagon branch office. Last ye:u, they won in battle against equals, but we Congress tried to bribe them into a show HON. ROBERT McCLORY knuckle under to the Turks in Cyprus! of flexibility by upping their covert allow­ OF ILLINOIS Even Senators Byrd and McGovern couldn't ance from $125 million to $175 million. They swallow that without a conscience-stricken, did not move an inch. IN THE HOUSE OF REPRESENTATIVES skeptical amendment to the Senate surrender Carter's announcement of his intention to Tuesday, August 1, 1978 to ''Karaborsa!" resu.me the full flow inspired them to invite As you have known for 33 years, the HouEe battered Greek refugees back to Fama­ e Mr. McCLORY. Mr. Speaker, recent­ is far closer to "home" than the Senate. gusta-to live under Turkish occupation. ly, a very effective investigation of drug And Tiger, nobody has shed more blood, President Carter "reassured" a large dele­ traffic and abuse was undertaken in sweat and tears than you in defense of every gation of Greek-Americans whom he in'vited Waukegan, Ill. This investigation dis­ basic American ideal, in pushing through to the White House last month that there has closed widespre1d trafficking in mari­ new frontiers of science and technology with­ been absolutely no progress on Cyprus-as if this would dilute their rage over his broken huana and in some hard drugs. Expert out losing roots anchored firmly in tho~e investigative agents supplied by the ideals. campaign pledge to "couple the improvement More than any man on The Hill, you have in relations with Turkey with increased fair Illinois Department of Law Enforcement been the catalyst and the maestro who progress on the Cyprus issue." cooperated with the Lake County State's orchestrated America's Space Program in If the Carter Administration has taken attorney, Dennis Ryan, and with the times of wavering national will. any steps to bring about the "coupling," they police department· of the city of Wauke­ Please draw deep now from your unequaled have been well concealed. Our ambassador to gan, headed by Chief Kenneth Ryck­ experience in war and science and politics, Turkey, Ronald Squires, last January said his only "hope was that the embargo will be man. before you vote to echo the Senate's signal removed." Mr. Speaker, the cooperative and to Ankara and Moscow: Assent of both Houses is required for re­ combined efforts of State, county, and "If you just push us hard enough, we'll peal. The Senate will go first, and the leader city law enforcement personnel resulted back down ...." of the Greek forces, Sen. PaulS. Sarbanes (D­ in apprehending substantial merchants Stay well, be wary, be wise, be Texan, yes, Md.), is hopeful that logic-and reminders of and be American! in illegal drugs and in their ultimate Jimmy Carter's call for morality in foreign trial and conviction. Very sincerely, policy-will win the day. JOHN REAGAN McCRARY . Sarbanes, a freshman, is remembered for The Waukegan, News-Sun staff his dogged endeavors on the House Impeach­ writer, Adrienne Drell, recounted the [From the New York Post, July 17, 1978] ment Committee. He is of Greek origin, but history of this major effort resulting in THIS Is No YEAR To HELP TURKEY his friends say that if he had been among a roundup of the principal operators of (By Mary McGrory) the troops outside Troy, he would not have an illegal drug business in Waukegan. If he would put as much pressure on the been working on the fateful gift horse; he This dramatic account should encourage would have been throwing words over the many others throughout the country to Turks as he is putting on Congress, Jim~y wall. Carter would have his repeal of the Turkish follow a similar program of investigation arms embargo handed to him on a silver "He is leaflet-ing the Senate," says a col­ and prosecution of those in the hard platter. league. "Every time you meet him, he hands drug marketing business. In the Wauke­ The President is the chief lobbyist for the you some literature." S::ubanes says Carter has failed to use in­ gan experience, the suppliers of cocaine, dubious cause. He invites groups of members heroin, and marihuana were appre­ to the White House for urgent briefings at­ ternational leverage. NATO ambassadors tended by the Secretary of State, the Secre­ should be routed, not to Capitol Hill, but to hended and tried, and all but one were tary of Defense, super-lawyer Clark Clifford Ankara where the English and the Germans convicted. and the Joint Chiefs of Staff. Republicans have special influence, to lean on the Turks. A similar effort should be undertaken receive phone calls from Supreme NATO On a more immediate level, he believes here in Washington, D.C., where recent Commander Alexander Haig. that if Carter is willing to write off the Greek vote, his colleagues are not. The Admin­ events indicate that hard drugs are Turkey, they are told, has been "punished quite prevalent and are used even by enough" for using U.S. arms to invade Cyprus istration's high-powered spokesmen say it's in 1974. pragmatic to vote for repeal; but the Greek­ those who serve at the highest levels of The issue has divided Democrats, who have American lobby, second only to the Jewish Government. just been through the wringer of the Mideast community in activism, is telling them it's Mr. Speaker, the article from the warplanes sales and are not eager to embark not, and it votes.e News-Sun follows: on election year "kamikaze missions" against [From the Waukegan, (Ill.,) News-Sun, July their Greek constituencies. 25, 1978] Turkey has been a sulking member of PERSONAL ANNOUNCEMENT DRUG BUST WAS MORE THAN A NATO since the embargo and what baffles PUBLICITY STUNT some Democrats is that Carter is asking them to reward the Turks for bad conduct. HON. MARTHA KEYS (By Adrienne Drell) Administration officials argue that the em­ OF KANSAS When 34 pers:::ns were arrested last August in what was called Waukegan's biggest drug bargo hasn't worked and that a more indul­ IN THE HOUSE OF REPRESENTATIVES gent attitude towards the transgressors is the raid, some skeptics accuEed officials of stag­ only way. Tuesday, August 1, 1978 ing a publicity stunt that would do little to curb the drug problem in the city. If that's the case, some of them wonder, • Ms. KEYS. Mr. Speaker, on Friday, And when Mayor Bill Morris called many why don't we start being nice to Fidel Cas­ July 28, 1978, I was unavoidably absent tro? Surely our embargo against Cuba. has of the persons arrested "the slime of the not won hearts and minds in Havana. It has from the House. Had I been present, I world," defense attorneys, already nettled instead, provoked Castro to such irritating would have voted on matters coming be­ by the press conferences and television counter-measures as the dispatch of troops fore the :::rouse as follows: cameras announcing the raid, reacted with to Africa. But any mention of diplomatic "Yea" on rollcall No. 614, on final rage. recognition as an alternative approach is passage of H.R. 9400, Civil Rights of In­ "How can he say that when no one has frowned on by the Carter Establishment. stitutionalized Person; been found guilty in a court of law," asked Turkey's intrasigence on Cyprus-it still one lawyer, referring to Morris' refusal to occupies 40 percent of the island, and, ac­ "No" on rollcall No. 616, on an release the prisoners on bond. cording to one European Human Rights in­ amendment that sought to delete provi­ Now, almost a year later, most of the de­ vestigating team, is severely mistreating sions giving the Civil Rights Commis­ fendants have had their day in court. And Greek islanders-is put forward as the clin­ sion authority to study discrimination while only 11 of those arrested received jail cher for coddling them. based on age or handcap status; or prison terms, officials feel the major 23784 EXTENSIONS OF REMARKS August 1, 1978 heroin suppliers in the area have been put powder inside. Laboratory tests disclosed it Waukegan could stay on top of the drug out of business, and a dent-if not complete was heroin. problem "as long as it uses its expertise and halt-put to the hundreds of thousands of While all this was taking place, a waukegan keeps it going." dollars in hard drug profits in Waukegan policeman maintained surveillance on the "The people on the street . . . sure they'll each year. transaction between the driver of the car, deal, but they are susceptible now because "Heroin is .insidious," said Assistant La Sandra Holmes, and Johnson. He then the police have the ability to bust them," he State's Attorney Michael Conroyd. "Do you followed her to Lovelace's home. Earlier, he said. "These people do not have the expertise know what is does to a guy? It corrupts his had been behind Holmes as she drove from of a John Lovelace so they are bound to fail." life. As a. result of this investigation and Lovelace's apartment to Johnson's. Ryan agrees. "H the police keep on it, the prosecutions, Waukegan police are in good Another month went by in which a series message will go out that it is difficult to oper­ shape. They have the reins. The pushers of drug purchases, including cocaine and ate in Waukegan."e and dealers are very nervous. marijuana, were concluded by agents. "They were pushing heroin in the streets Finally, on Aug. 23, a plan was put into like candy. Now they have to look over their motion as 45 Waukegan policemen aided GOVERNOR LONGLEY: YANKEE shoulders because they know the Waukegan by 17 Illinois Department of Law 'Enforce­ WHO TAMES BUREAUCRATS police will bust them immediately." ment agents fanned out. State's Attorney Dennis Ryan said the Starting at 7 p.m. and continuing through Waukegan drug network was certainly being the night and following days, 34 persons were HON. WILLIAM S. COHEN forced out of business, "and if we only could taken into custody. OF MAINE find the source of heroin to the suppliers, Lovelace went on trial in March and was IN THE HOUSE OF REPRESENTATIVES we could do a lot to wipe out hard drugs convicted of selling heroin to the agents. altogether." He later also pleaded guilty to an addi­ Tuesday, August 1, 1978 Policy Chief Kenneth Ryckman feels the tional count and was sentenced to two con­ • Mr. COHEN. Mr. Speaker, this week's city has obtained a good hold on containing current prison terms of seven years. its drug problem. David Johnson, the star witness at Love­ edition of U.S. News & World Report "What has happened is that we definitely lace's trial, admitted he was the middleman carries on its "Editor's Page" an article curbed drug traffickers," Ryckman said. "We between the supplier and the agents. He is by Marvin Stone on Maine's exceptional discouraged them from doing business by currently serving a two-to-six year prison Governor, James B. Longley. hitting most of their prime sources and tak­ term. Governor Longley is the Nation's only ing away their runners." Sentenced to three years in prison after Independent Governor, and independ­ Not every one agrees that drug traffic in pleading gull ty to the deli very of heroin. was ence has been the distinctive feature of Waukegan has been significantly slowed as Holmes, who was Lovelace's girlfriend and his tenure in Augusta. In his one term in a. result of that late-summer crackdown. "constant runner." Of the 16 persons arrested on heroin office professors moonlighting." We asked him what his reaction would be WORK PROGRAMS And at that point, Mr. Benedict became an if the President invited him to bring his overseer, along with the General Services "The federally financed work programs talents to Washington, to serve the nation Administration, on the renovation, the de­ under the Comprehensive Employment and as he has served Maine. His response: ''I sign, the furnishings of that building. So Training Act (CETA) have become political hope I am not confronted with having to that in addition to his responsibilities as footballs and counterproductive. Contrast make that decision.'' United States District Clerk, he shared that them with President Roosevelt's work pro­ For the nation's sake, Jimmy Carter could and shouldered that load for some four years. grams of the 1930s-the WPA, PWA and CCC. do a lot worse than putting the governor And, of course, the building now stands as What Roosevelt did was to put people on to work.e a monument to his abilities and those of productive jobs. They built roads. They built Judge Spears and the G.S.A., therefore decid­ libraries-things tbat society can use. And it ing how properly to build the court building. brought some dignity and kept some pride DAN BENEDICT Those of you who are in this courtroom in the work ethic. I'm not suggesting that may not have been there, but if you have not, we put people to work digging ditches. But when you're in San Antonio, you should go by much better they dig ditches and feel like HON. OLIN E. TEAGUE and look. It's on the Hemisfair Plaza. And they've earned a paycheck than stand in a OF TEXAS when you look at it, you will know that a soup line with their hands out. We've gone IN THE HOUSE OF REPRESENTATIVES great portion of that is directly attributable one step lower than the soup lines. We say to Mr. Benedict and the foresight that he had we'll give you money to buy liquor, beer, Tuesday, August 1, 1978 and the taste that he had, the ability to plan soup or whatever you want, even though e Mr. TEAGUE. Mr. Speaker, on May 26, and administer. jobs are available." 1978, Mr. Dan Benedict, district clerk So he will be sorely missed. I'm confident PROFESSIONAL POLITICIANS for the U.S. Western Judicial District of there will be appropriate services for Mr. Benedict. I do not know now the exact time "After almost four years in government, I Texas passed away, a victim of cancer. of the services, but I'm sure there will be am convinced that the changes necessary to Dan was well known to me, because his additionally a memorial service for him, and get America back on tb e course designed by wife Lil, who had come to Washington those minutes of that service will be spread our Founding Fathers cannot be entrusted many years ago to work on the Hill with on the record of this Court in this division in solely to the two major political parties. We the Hon. Ben Guill, then with Clark honor and remembrance of Mr. Benedict. O:XXIV--1496-Part 18 23786 EXTENSIONS OF REMARKS August 1, 1978 IN THE U.S. DISTRICT COURT FOR THE describe such revisions properly in a "sum­ and drugs would be eligible for the medical WESTERN DISTRICT OF TEXAS, SAN AN­ mary" should be borne in mind. The official expense deduction. TONIO DIVISION report of the Committee on Ways and Means As a. result of these modifications, the full COURT'S REMARKS AT THE COMMENCEMENT is the ultimate· legislative and interpretative amount of medical and hospitalization in· OF PROCEEDINGS HELD, MAY 31, 1978 authority. This document is prepared for the surance premiums, the costs of prescription use of Memb-ers of Congress and their staffs, medicine and drugs (and nonprescription in· Judge ADRIAN A. SPEARS. Ladies ann gen­ and is intend·ed to serve only as a convenient tlemen, I want to take just a moment this sulin), and other qualifying medical ex· condensation of the b1ll's principal provi­ penses would be deductible to the extent that morning to make a statement about Dan sions. Benedict. I was out of the state last Thurs­ they exceed three percent of adjusted gross day when he passed away, and I didn't re­ TITLE I. INDIVIDUAL INCOME TAXES income. turn until late Monday afternoon. So, yes­ A. Tax reductions and extensions E. Unemployment compensation terday was the first day that I was back The individual tax brackets would be The current exclusion from taxable income in the office since he had died. widened by 6 percent of taxable income in for unemployment compensation paid pur­ Mr. Maverick, I want to thank you for excess of the zero bracket amount. Also, suant to government programs would be filling ih at the Naturalization Ceremonies. there would be rate cuts in certain bracke·ts. phased out at higher levels of income. The I know you were a friend of Dan Benedict's, In addition, the zero bracket amount ($2,- amount of unemployment compensation ex­ and I know that you would like to have 200 for single persons and $3,200 for married cluded would be reduced by one-half of the been at his funeral. Naturalization proceed­ coupl'es) would be increased to $2,300 for excess of gross income (including unemploy­ ings, of course, pose an entirely different single persons and $3,400 for married couples. ment compensation) over $20,000 for single problem with the court. The Immigration au­ This has essentially the same effect as a taxpayers, and generally over $25,000 for mar­ thorities send out a hundred or more no­ comparable increase in the standard deduc­ ried taxpayers. tices for people to appear. This is a big day tion would have had under prior law. F. Deferred compensation for those who are going to become citizens, B. Personal exemption and general tax credit and they prepare for it, have members of Employees and independent contractors their family and friends come with them, The present $750 personal exemption for performing services for a State or local gov­ and I felt that I knew Dan Benedict well each taxpayer and dependent would be in­ ernment or the Rural Electrification Admin­ enough to know that he woud think the ap­ creased to $1,000. The general tax credit, istration would be able to defer annually propriate thing to do was to continue with which equals the greater of ( 1) $35 for each an amount equal to the lesser of $7,500 or that. personal exemption or (2) 2 percent of the 33 % percent of their currently includible The three courts were otherwise closed first $9,000 of taxable income in excess of the comuensation. In cases where amounts less down yesterday in his memory, but I had zero bracket amount, would be allowed to ex­ than these limitations are deferred, a limited not had an opportunity to publicly state pire at the end of 1978. catch-up would be available during the my feelings about it, and, for the record, C. Earned i?Wome credit three-year period preceding retirement. In addition, compensation deferred under un­ I would like to make this statement: Dan The earned income credit would be changed Benedict's death w1ll leave a void that will funded deferred compensation plans main­ in three respects. First, the credit allowed tained by taxable employers would be sub­ be extremely difficult to fill. He was not only would be equal to the lower of (a) 10 per­ a fine gentleman but he was also a dedi­ ject to the principles of law in effect on cent of earned income or (b) the maxi­ Febru!l.ry 1, 1978. Finally, the rules !or the cated public servant, having served this dis­ mum credit amount ($400) minus 10 percent deductibility of employees' deferred compen­ trict well for ten years. In addition to his of the amount by which adjusted gross in­ sation would be extended to deferred pay­ other accomplishments, he appeared on nu­ come or earned income, whichever is larger, ments for services performed by independent merous occasions as a faculty member for exceeds $4,000. Second, items which are ex­ contractors. the Federal Judicial Center and also for the cluded from adjusted gross income would Administrative Office of the United States no longer be excluded from earned income G. Cafeteria plans Courts in the tralning of newly appointed eligible for the credit. Third, taxpayers eli­ Participants in nondiscriminatory "cafe­ clerks and other staff members of the Clerk's gible for the credit would be married couples teria." plans (welfare benefit plans which Offices throughout the nation. and surviving spouses who have a child living permit participants to choose which fringe I know that I speak for each judge in with them, and unmarried heads of house­ bene~ts they want purchased with employer this district as well as for all of the other hold who maintain e. household for a child. contributions) would not have taxable in­ court officials with whom Mr. Benedict These changes are intended to make it easier come to the extent that they elect to have worked, including the deputy clerks serving for taxpayers to compute the credit and to employer contributions applied to purchase in our seven divisions when I express deep­ provide the necessary information on the nontaxable benefits (e.g., accident and health est sympathy to Mrs. Benedict and the other tax return to enable the Internal Revenue benefits or group-term life insurance in an members of his famiy. Service to allow the credit to taxpayers who amount less than $50,000). Participants We are all going to miss him, and when· qualify but do not take advantage of the would have taxable income to the extent that court adjour~s today, it w111 do so out of credit on their tax return. they elect to have employer contributions ap­ plied to purchase taxable benefits or they respect for his memory.e In addition, the earned income credit ele~t to receive cash or other property in lieu which is due to expire on December 31, 1978, of fringe benefits. A special rule is provided would be made permanent. SUMMARY OF REVENUE ACT OF' to insure that accident and health benefits D. Itemized deductions 1978 are provided on a nondiscriminatory basis. 1. State-local nonbusiness gasoline taxes.­ H . Cash and deferred profit-sharing plans The provision of present law which permits Amounts that a participant in a quali­ HON. BOB CARR itemized deductions for State and local taxes fied, nondiscriminatory "cash and deferred" OF MICHIGAN on gasoline, diesel, and other motor fuels not profit-sharing plan (a plan which permits used in business or investment activities IN THE HOUSE OF REPRESENTATIVES participants to elect to defer part, or all, of would be repealed. the profit-sharing contribution to be made Tuesday, August 1, 1978 2. Political contributions.-The provision by the employer for the year) elects to defer • Mr. CARR. Mr. Speaker, all of my col­ of present law which permits itemized deduc­ and have paid into the trust under the plan tions for cert~in political contributions up would not be taxable to the participant in leagues and many of their constituents to $100 per year ($200 in the case of a joint the year of deferral. In determining quali­ are deeply interested in the provisions of return) would be repealed. The provision of fied status of a plan, relevant revenue rul­ H.R. 13511, the Revenue Act of 1978, as present law which permits an income tax ings relating to nondiscrimination and approved by the Ways and Means Com­ credit equal to one-half of such political con­ treatment of these plans as qualified profit­ mittee. tributions, but not more than $25 ($50 in the sharing plans, which had been issued prior Accordingly, I am inserting the com­ case of a joint return) , would be retained. to January 1, 1972, would apply. The sub­ 3. Medical expenses.-The provision of stance of this provision is contained in mittee staff's summary of this bill into H.R. 9251, as passed by the House and the RECORD: present law which permits itemized deduc­ tions for one-half the cost of medical and Senate, except that the provision of H.R. SUMMARY OF H.R. 13511, As AMENDED hospitalization insurance premiums (up to 9251 would terminate on January 1, 1980, PREFACE and would apply only to plans in existence $150), without regard to the general limita­ on June 27, 1974. This document is a summary of the prin­ tion that medical expenses are deductible cipal provisions of H.R. 13511, the Revenue only to the extent exceeding three percent of I. Effective Date Act of 1978, as ordered reported by the Com­ adjusted gross income, would be repealed. In general, the provisions of Title I would mittee on Ways and Means on July 27, 1978. In addition, the special limitation in present apply to taxable years beginning after De­ The Committee ordered H.R. 13511 favorably law which permits deduction of medicine and cember 31, 1978. reported with amendments by a record vote TITLE II. TAX SHELTER PROVISIONS 25-12. drug costs only to the extent the costs ex­ In view of the significant revisions of the ceed one percent of adjusted gross income A . Changes in at-risk rules Internal Revenue Code included in tmis would be repealed. Also, under this re­ The at-risk loss restriction provision of legislation, the limitations of attempting to vision only insulin and prescription medicine present law, which now applies to four spe- August 1, 1978 EXTENSIONS OF REMARKS 23787 cified activities (farming, oil and gas, motion available. In general, this provision would as of the beginning of the taxable year did pictures, and equipment leasing) , would be apply to property acquired by the taxpayer not exceed $1 million. extended to apply to all activities except real after December 31, 1978. 4. Effective dates.-In general, these small estate. In light of the broadened application D. Targeted jobs credit business provisions would apply to taxable of this provision, the partnership at-risk A permanent tax credit of 50 percent of years beginning after December 31, 1978. The loss restriction would be repealed. provision relating to small business corpora­ This provision (now applicable to indi­ FUTA wages (the first $6,000 of wages per employee) for the first year of employment tion stock would apply to stock issued after viduals, trusts, estates, subchapter S cor­ the date of enactment. porations, and personal holding companies) and 16 % percent of such wages for the sec­ ond year of employment would be provided G. Accrual accounting for farming would also be made applicable to any closely corporation held corporation in which five or fewer indi­ for hiring: ( 1) AFDC recipients who regis­ viduals own more than 50 percent of the ter for the WIN program, (2) recipients of The family corporation exception to the stock. Supplemental Security Income (SSI) , (3) rules which require that certain farming cor­ In addition, the provision would be modi­ handicapped individuals, (4) individuals of porations use an accrual method of account­ fied to provide for recapture of previously ages 18 through 24 who are members of ing and capitalize preproductive period ex­ allowed deduct ions where there were with­ households receiving food stamps, (5) Viet­ penses would be extended to cover certain drawals of amounts originally placed at risk. nam veterans, who are members of house­ corporations that are controlled by two or In general, these changes in the at-risk holds receiving food stamps, (6) recipients three families. rules would apply to taxable years begin­ of general assistance for 30 or more days, In addition, farmers, florists, and nurseries ning after December 31 , 1978. and (7) individuals of ages 16 through 18 on an accrual method would not be required who are participants in a high school or B. Partnership provisions to take inventories of growing crops into ac­ vocational school sponsored work-study or count in computing taxable income unless A civil penalty would be imposed on a cooperative education program. Wages eli­ these taxpayers are required by statute to partnership for failure to file (or late filing gible for the credit would be limited to 20 capitalize preproductive period expenses. of) a partnership ret urn. Also, the general percent of the total FUTA wages paid by an Further, farmers, florists, and nurseries who three-year period of limitations under pres­ employer. are currently using an accrual method of ac­ ent law (in which a person may be assessed The current general jobs tax credit would counting, but who are not required by additional income tax for a particular year) be allowed to expire at the end of 1978. statute to use such a method of accounting, would be extended to four years after the The Secretaries of Treasury and Labor would be allowed until 1981 to change to the date the partnership return is filed with re­ would be required to submit a report to Con­ cash method of accounting. spect to income, deduction and credit items gress by June 30, 1981 , on the effectiveness In general, these provisions would apply which have been passed through from cer­ of the general jobs credit in stimulating to taxable years beginning after Decem­ tain partnerships to that person. This pro­ employment in 1977 and 1978 and of the ber 31, 1977. vision would only apply to partnerships sub­ targeted jobs credit, as provided in this blll, ject to registration or reporting requirements in improving the employment situation of H . Five-year amortization for low-income of the Securities and Exchange Commission. the targeted groups. rental housing In general, the partnership provisions A 3-ye·ar extension of the special 5-year E. Increase limit on small issues of industrial amortizat ion rule for certain expenditures to would apply with respect to taxable years development bonds beginning after December 31 , 1978. rehabilitate low income rental housing would The small issues limitation on industrial be provided (i.e., until January 1, 1982) . Un­ TITLE III. BUSINESS TAX REDUCTIONS development bonds would be increased from der the special amortization rules for certain A. Corporate rate reductions $5 million to $10 million for capital expendi­ low-.ncome rental property, taxpayers may The corporate tax rate applicable to the tures made over a 6-year period for a proj­ elect to amortize up to $20,000 of certain first bracket of taxable income ($0-$25,000) ect. In general, this provision would apply to rehab111tation expendi-tures, on a per dwell­ would be reduced from 20 percent to 17 per­ obligations issued after December 31, 1978, ing unit basis, over a period of 60 months 11 cent. The rate applicable to the second in taxable years ending after such date. the additions or improvements have a useful bracket ($25,000-$50,000) would be reduced F. Small business provisions life of 5 years or more. from 22 percent to 20 percent. 1. Subchapter S provisions. Three modifi­ TITLE IV. CAPITAL GAINS In addition, two additional brackets would cations would be made with respect to sub­ be created. The corporate tax rate applicable A. Alternative capital gains tax chapter s corpo.rations: ( 1.) fifteen or fewer The election for individuals to have the to the third bracket ($50,000- $75,000) would shareholders would be allowed for its initial be 30 percent and the rate applicable to the election; (2) husbands and wives owning first $50,000 of long-term capital gains taxed fourth bracket ($75 ,000- $100,000) would be subchauter S corporation stock, regardless of at an alternative rate of 25 percent would be 40 percent. Finally, taxable income in excess how th.e stock is held, would be treated as repealed, effective for taxable years begin­ ning after December 31 , 1978. of $100,000 would be taxed at 46 percent one shareholder for purposes of determining (rather than 48 percent as under present whether the subchapter S shareholder limi­ B. Minimum and maximum tax law). tation has been complied with; and (3) a Oapital gains would be removed from the In general, these corporate rate reductions subchapter Selection would be allowed to be list of tax preferences for individuals, cor­ would apply to taxable years beginning after made at any time during the first 75 days porations, estates and trust under both the Decemb-er 31 , 1978. of the current taxable year or at any time minimum and maximum taxes, effective for B. Investment credit modifications during the preceding taxable year. taxable years beginning after December 31, The present 10-percent investment credit 2. Small business corporation stock.-A 1978. This change would reduce the maxi­ and the $100,000 used property limitation corporation would be permitted to issue up mum rate of tax on capital gains to 35 scheduled to expire at the end of 1980, would to $1.000,000 of section 1244 stock (as op­ percent. be made permanent. In addition, the 50- posed to the $500,000 limitation of present C. Alternative minimum tax on capital gains law) potentially subject to ordinary lo."s p.ercent limitation on the amount of invest­ An alternative minimum tax would be pro­ ment credit that can be used to reduce tax treatment. The maximum amount treated as an ordinary loss from the sale or exchange of vided at the rate of 10 percent on the ex­ liability in excess of $25,000 for any taxable cluded one-half of an individual's long-term year would be increased to 90 percent, phased section 1244 stock for a taxable year would in-::rease to $50,000 ($100,000 in the case of a capit>al gains, reduced by a $10,000 exemp­ in at an additional 10 percent per year. Fi­ tion. This alternative minimum tax would be nally, eligible property for purposes of the joint return) . In addition, the requirement that the section 1244 stock be issued pur­ imposed only to the extent this tax exceeds investment tax credit would be expanded to the individual's regular tax liability. The include rehabilitation expenditures wit h re­ suant to a plan would be repealed. 3. Special depreciation rules tor small alternative minimum tax base excludes any spect to existing industrial and commercial capital gain realized on the sale or exchange buildings (including retail structures and business.-The additional first year deprecia­ t ion allowance (sec. 179) would be modified of an individual's principal residence. warehouses). It would not apply to residen­ Under the bill, individuals who realize tial property. The credit would be available in three respects. First, the percentage allow­ able would be increased from 20 percent to capital gains would compute their regular for eligible rehabilitation expenditures in­ tax liability and compare this amount with cured after December 31, 1978. 25 percent. Second, the base amount for the cost of eligible depreciable tangible property that calculated under the alternative mini­ C. Investment credit for pollution would be increased from $10,000 to $20,000 mum tax on capital gains. The individual's control facilities (in the case of a joint return, the amount tax liability would be the gre,ater of these The full investment credit would be would be increased from $:2.0,000 to $40,000). amounts plus the amount of the existing allowed for pollution control facilities which As a result of these two changes, the amount minimum tax (which would continue to are eligible for an election to use 5-year deductible would be increased from $2,000 apply to tax preferences other than capital amortization, except to the extent the facil­ (20 uercent of $.10,000) to $5,000 (25 percent gains). ity has been financed with tax-exempt of $20,000). In the cas.e of a joint return, D. Inflation adjustment industrial development bonds. Under pres­ the amount deductible would be increased Taxpayers would be allowed to adjust the ent law, the investment credit on pollution from $4,000 (20 percent of $20,000), to $10,000 basis of certain capital assets upward by the control facilities for which the taxpayer (25 percent of $40,000). Third, the provision rate of infla.tion. For eligible assets sold a!ter elects 5-year amortization is limited to one­ would be made applicable only to a taxpayer December 31, 1979, the basis adjustment half of the credit that otherwise would be whose adjusted basis in depreciable assets would reflect the rate of inflation indicated

I· 23788 EXTENSIONS OF REMARKS August 1, 1978 by the consumer price index for the holding criminal drug use is widespread and per­ Other said they regard drug use, which period of the asset. However, the adjustment sistent at the White House. in this case involves marijuana. and cocaine would be made only with respeot to increases These are not the allegations of dis­ rather than hard drugs, as a private matter, ln the consumer price index occurring after not a newsworthy event. That holds true, December 31, 1979. In general, assets eligible gruntled political enemies. One of the some maintain, even though such use is a. for the basis adjustment would be corporate principal reports concerning this drug violation of the law, a law some regard as stock, real estate, and tangible personal use by the President's staff and visitors unwise. p:-operty. to the White House came from Dr. Peter Still others, perhaps fearing reprisals from named staffers, wondered aloud whether their E. Exclusion of gain on sale of residences Bourne, a close friend of the President and, until his recent resignation because own jobs might be jeopardized if their drug An individual, regardless of age, could elec·t use was made known. to exclude from gross income $100,000 of any of a drug-related episode, the President's In effect , the reporters who could write the gain realized on the sale or exchange of his chief adviser on drugs. most authoritative account of White House or her principal residence. The exclusion The fact that the President, in an un­ drug habits are engaging in a coverup of a would apply only once in a taxpayer's life­ precedented move, had to tell his senior story that undoubt edly would disturb many time, and would be available only if the staff members to stop breaking the law Americans, not to mention Jimmy Carter present nonrecognition treatment for roll­ lends further weight to the allegations. himself. overs is not elected. In addition, the exclu­ Each day brings forth new facets of Th is hesit ancy to divulge names extends to sion would apply with respect to gain realized this case. Newspapermen have openly this reporter, who though not a marijuana on the sale or exchange of a. principal resi­ or coc::J.ine user, learned with certainty and dence which the taxpayer has owned and stated that they have long been aware of not too much difficulty the names of White occupied as his or her principal residence for illegal drug use among members of the House staffers, including at least two on the the two-year period which immediately pre­ White House staff. But the story has been senior staff who have been marijuana users. cedes the sale. The exclusion would apply covered up, because, according to the Other reporters, notably James Wooten to sales or exchanges after July 26, 1978. newspapermen, they too use illegal of the New York Times, have also done some The provision of present law re·lating to drugs-often in the company of White digging but have turned up merely numbers gain realized on the sale of a. principal resi­ House aides. of users, not names. dence by a taxpayer 65 and over would be Reporters have said they are afraid (Bourne, the President's resigned chief repealed. of being called "hypocritical" if the health adviser, engaged in a little hedging If an individual realizes gain in excess of himself, telling Wooten that there was a the amount excludible, the taxpayer's gain names of White House drug users are "high incidence" of marijuana use among would be reduced prior to the application of publicized. But maybe more to the point, White House staff and "occasional" use of the present law deduction of one-half of the as one reporter acknowledged, the re­ cocaine by "a few" presidential employes.) individual's long-term capital gain. porters themselves are afraid of losing Though not mandated by White House F . Nonrecognition of gain on certain their jobs because of the widespread use policy, disclosure of staffers' names would residential sales of drugs in the Washington press corps. almost surely mean their dismissal. And An individual could elect not to recognize Quite frankly, I think there is a pro­ under the circumstances, many reporters gain on the sale of more than one principal fessional responsibility on the part of find themselves (this one included) wonder­ residence within an 18-month period (rather news people to report the facts of any ing whether such a story is justified. Perhaps than the present law limit of one "rollover" the situation would be different 1! one staff during the 18-month period), if a replace­ law violation, whether they agree with member, on the records, named another as a. ment princip·al residence is purchased and the law that is broken or not. Selective user. But as it stands, the concerns of pri­ occupied within that period, and if each sale covering up of illegal activity-in this vacy, and the potential for ruining a. person's and purchase is attributed to the individual's case, drug abuse among White House career and, to lesser extent, all pressure for relocation for the convenience of his or her aides and their reporter associates-is an discretion-censorship, if you will-despite employer. Gain not recognized on any sale abuse of the public trust in our pro­ what many reporters regard as the unwaver­ would reduce the individual's tax basis for fessional news corps. ing credo of journalism: The people have a each of his or her new residences. right to know. Drug use or abuse among top White Ignoring this story, however, may not be G. Capital gains tax study House aides and reporters has a great up to this reporter or reporters who have The Treasury Department would be re­ impact upon national policy and public shared a joint with this staffer or snorted quired to prepare, and submit to Congress, opinion. The public deserves to know coke with that official. by September 30, 1981, a report on the effec­ Other reporters, including some from High tiveness of the reductions of both the indi­ just what aides and what reporters are users. Times magazine, an unorthodox organ of the vidual and the corporate capital gains tax drug-users' community, are pursuing the rates in stimulating investment and increas­ Patrick Oster of the Chicago Sun story, some perhaps intent on showing that ing the rate of economic growth. The report Times recently wrote a commentary in use of recrea tiona! drugs is as American as also is to include a study of the effects of which he claims that illegal drug use has apple pie. these reductions on the growth of employ­ been observed on the White House lawn, The Washington bureau of a major tele­ ment and on income tax revenues. during a picnic there, and on Presiden­ vision network has also been assigned a story tial trips. on "drug use in official Washington," an as­ TENTATIVE REVENUE EFFECT OF H.R. 13511 AS ORDERED signment that one bureau reporter said could REPORTED Mr. Oster claim~ to know the names of two White House aides who use illegal be covered quite well by interviewing just [Dollar amounts in millions) the network's Washington correspondents. drugs. He will not give those names. But If stories emerge on White House drug Calendar what about the public's right to know? Fiscal use, Carter will face a political crisis perhaps 1979 1980 1979 I would like to include the Chicago equal to the debacle that followed disclo­ Sun Times article at this point in the sures about Bert Lance's banking practices. IndividuaL ______-$10, 464 I (65. 5) - $12, 033 -$6, 970 RECORD: Figures on recrea tiona! drug use among Corporate______- 3,755 (23. 5) - 4,969 - 2, 033 Americans show about 25 million have tried Capital vains 2__ _ _ _ -1, 766 (11. 0) - 2, 241 - 280 [From the Chicago Sun Times, July 25, 1978) Individual______-1, 671 ------2,137 - 280 marijuana at least once, and about 10 million Corporate______- 95 ------104 ------THE UNTOLD: CARTER STAFF DRUG USE are regular users. And support for decrimi­ (By Patrick Oster) nalization, of "grass" and other soft drugs is TotaL ______-15,985 (100.0) - 19, 243 -9,282 WASHINGTON.-Since the news broke that growing. (Carter himself favors marijuana I Figures in parentheses are in percent. Dr. Peter G. Bourne was supplying drug pre­ decriminalization, an idea that has caught 2 The revenue estimates do not take account of any changes scriptions to members of the White House on in about 10 states.) in economic activity in response to the tax change. staff the primary topic among the press But sentiment among voters remains Source: Joint Committee on Taxation, July 27, 1978. e corp~ has been about who on the President's strong a~ainst recre::J.tlonal drugs, particular­ staff smokes or snorts what. ly cocaine, largely because it violates the Some talk is more informed than the rest law. The straitlaced Carter, a born-again because of a fact that some members of the Christian, shares this hard view having told THE WHITE HOUSE DRUG SCANDAL public might find peculiar: Many reporters senior staffers Monday that future drug use who cover the White House have tried or would be a ground for dismissal (while side­ used drugs themselves, sometimes socially stepping what he'd do about past use.) HON. ELDON RUDD with members of the White House staff. However, within the White House staff, OF ARIZONA This makes them uneasy about disclosing which includes many young, progressive peo­ IN THE HOUSE OF REPRESENTATIVES staff drug use, as Sun-Times interviews with ple, use in the past has been anything but reporters showed. Some said they'd feel more discrete. On presidential trips, for example, Tu.esday, August 1, 1978 than mildly hipocritical about putting pub­ and on the White House lawn during this • Mr. RUDD. Mr. Speaker, recent re­ lic heat on White House staffers for activities year's Fourth of July fireworks celebration, ports in the media make it clear that they themselves condone or engage in. marijuana's pungent smell has filled the August 1, 1978 EXTENSIONS OF REMARKS 23789 air-despite (or because of) the presence of is perhaps the greatest built-in food price products constitute the second-highest reporters. inflation factor there is," remarked Haas, revenue-producing exports and because In a sense, the casualness that has char­ "and it's one which requires rigid examina­ acterized such use is a reflection of what's tion and possible substitution." our balance-of-trade situation is already going on in society at large, where, amid a Finally, CNI stated that vast sums of terrible and becoming worse. The timing lot of other crises, busts for "grass" use money should not be channeled into pro­ of this problem is admittedly discom­ don't seem all that important to many. grams that are used to buoy inefficient sugar forting, because the impeding congres­ Carter and his top aides clearly have been production. Many researchers feel that sional adjournment date interferes with unnerved by the Bourne episode and its sweeteners should not even be grown in tem­ the possibility of examining the situa­ aftermath and are hoping that the land mine perate zones-that tropical areas are more tion in the detail it deserves. Neverthe­ of further disclosures will not blow up in suitable for their production. "An increase less, I hope we can persuade the rele­ their faces. in support prices will only encourage greater That hope seems a thin one, however, given production which is precisely what we do not vant agencies to take aggressive action the press congressional interest in the topic. need at this time," said Haas. "We feel cer­ in dealing with the Airbus threat, and I When staffers' names are disclosed, Carter's tain that our agricultural resources could hope we can have a congressional exam­ moral outrage and tough talk about firing be much more wisely spent on the produc­ ination of the situation as soon as pos­ may prove of no avail. And the beleaguered tion of other commodities and urge that the sible. President, increasingly accused of incompe­ proportion of the government's finances I make one further observation about tence, may find himself trying to persuade spent on support of sweetener production be French tactics with regard to the sale to the American public that he is not a bum­ decreased." e China Airlines. The French want to have bling John Calvin among the hippies.e their cake and eat it, too. Having de­ AIRBUS STRIKES AGAIN cided to sever diplomatic relations with CNI OPPOSES INCREASED SUGAR Taiwan in exchange for relations with PRICES . the People's Republic of China, the HON. MARK W. HANNAFORD French can now tempt the Nationalist OF CALIFORNIA Chinese with pseudo-diplomatic over­ HON. RAYMOND F. LEDERER IN THE HOUSE OF REPRESENTATIVES tures of this sort. What is more, the OF PENNSYLVANIA French were ruthless in their terms: Re­ Tuesday, August 1, 1978 IN THE HOUSE OF REPRESENTATIVES portedly the Chinese wanted to mix their Tuesday, August 1, 1978 C> Mr. HANNAFORD. Mr. Speaker, the buy with both DC-10's and A300's. The Members of this House realize how French refused and required a straight e Mr. LEDERER. Mr. Speaker, I would closely I have been moni taring the sales buy of four A300's, options for four more, like to share with my colleagues in the practices of Airbus Industrie in its com­ and no mix of aircraft. The Chinese, House a recent news release by the Com­ petition with American aircraft manu­ eager to gain further contacts with the munity Nutrition Institute in opposition facturers around the world. I regret to West to bolster their national integrity, to any further increases in the domestic report that the French have stooped to feel compelled to entertain the French. price of sugar. Unfortunately, legisla­ violating the 1975 Aircraft Understand­ Mr. Speaker, I hope the Airbus threat tion now under consideration by both ing of the Organization for Economic will receive prompt and serious atten­ Houses of Congress, in particular H.R. Cooperation and Development to make tion. It deserves no less.• 14862 and S. 2990, would serve only to a sale. increase the domestic price of sugar. The The case at hand is a pending sale of press release is as follows: four wide body aircraft to China Air­ BIPARTISAN SUPPORT IN THE SEN­ CNI OPPOSES INCREASED SUGAR PRICES lines. The Nationalist Chinese were ATE EPITOMIZES THE SOUND­ WASHINGTON, D.C.-The Community Nu­ considering the purchase of two Douglas NESS OF A NATIONAL CONSUMER trition Institute, a private nonprofit nutri­ Aircraft DC-10's with options for two COOPERATION BANK tion and food advocacy group, today an­ more. The Airbus A300 was competitor nounced that it vigorously opposes any for this sale. Reportedly the French have further increases in the domestic price of HON. CHALMERS P. WYLIE offered the Chinese landing rights in OF OHIO sugar. Paris-a privilege they do not now en­ Due to the provisions of the Food and IN THE HOUSE OF REPRESENTATIVES Agriculture Act of 1977, domestic prices are joy-if they purchase the A300, and re­ currently maintained at over twice the world portedly the Chinese have responded Tuesday, August 1, 1978 price. This level of support already costs favorably to this offer with a letter of • Mr. WYLIE. Mr. Speaker, the Na­ sugar users nearly two billion dollars an­ intent. tional Consumer Cooperative Bank Act nually and higher levels will add to this bill The OECD understanding prohibits $300 million for every added cent. "Further conference report will be coming up for the use of extraordinary sales or financ­ a vote on the House floor shortly. As one increases are simply beyond reason", stated ing terms by any government to secure a Ellen Haas, Director of CNI's Consumer of the original sponsors of this legisla­ Division. sale of aircraft. The tie-in of landing tion, I would urge my colleagues to fol­ The group stated that a limitation must rights with an aircraft sale is clearly low the lead of the other body and adopt be placed on the amount of money one pro­ extraordinary and unfair to American the conference report. ducer is able to collect through the support private aircraft manufacturers. Indeed, The concept of the bill developed from program and it suggested acceptance of the in many ways this kind of violation is an idea expressed by Mr. Frank Sollars Administration's figure of $50,000. Data have more worrisome than that kind perpe­ of Ohio at the Cooperative League of the shown that at this level only two beet pro­ trated by the British in the Lockheed/ U.S.A. meeting in San Francisco in ducers will be limited in income payments Rolls Royce sale to Pan American Air­ 1974. Mr. Sollars is a successful farmer, in addition to a small handful of the largest lines. In the latter case we at least have cane growers. banker, farm co-op, and community an institution, that is, the Export-Im­ leader. Use of the parity index for escalating price port Bank, that can take its gloves off in supports also drew fire from CNI. The index a foreign competition and offer similar It was not long after that when Mr. leads to arbitrary and totally unwarranted George H. Dunlap, former chairman of support price changes, the group said. in that financing terms; in the case of China Airlines we have no experience of tying the board of Nationwide Insurance Co., factors completely unrelated to sugar pro­ Mr. Sollars, and Mr. Carl Stitzlein, a duction or farmer income are heavily landing rights with private sales. weighted. Thus this violation points to the kind member of the Cooperative League of the U.S.A. came to my office with the For example, had feeder livestock, which of Airbus-government collusion which account for 11.7 of the index and which have we have suspected all along. Airbus is not idea. risen nearly 50 percent during the last, not a private company: It is a government­ I later discussed the idea with Mr. been included in adjustment calculations, subsidized multinational consortium Dean Jeffers, chairman of the board of the government loan level would have only with access to government resources and the Nationwide Insurance Co., Mr. John been increased to 14.1¢ per lb., instead of the authority. Our aircraft manufacturers Fisher, the president of Nationwide In­ 14.65 cent level recently imposed. "Consum­ surance Co., and Mr. R. G. Chilcott, the ers will pay about $150 million more for cannot hope to compete with it without sugar this year because of higher feeder cat­ American Government support. Mr. senior vice president for corporate rela­ tle prices and it's likely that the domestic Speaker, it is imperative that we exam­ tions. price will rise to near 20 ~ per pound by 1981 ine a way to provide Federal support Because of their expertise and emini­ for the same reason. Use of the parity index immediately. This is because aerospace nently logical arguments, I was con- 23790 EXTENSIONS OF REMARKS August 1, 1978 vinced that a National Consumer Co­ National Retired Teachers Association, Nationwide Insurance, Columbus, Ohio. operative Bank could provide the cata­ Washington, D.C. Continental Association of Funeral and lyst for the enhancement of economic National Conference of Black Mayors. Memorial Societies, Inc., Washington, D.C. National Association of Neighborhoods, Consumer Cooperative Alliance, Port Wash­ growth, the uplifting of community Washington, D.C. ington, N.Y. neighborhoods and act as a stimulus to National Urban Coalition, Washington, National Association of State Credit Union the free enterprise system. Consumer co­ D.C. Supervisors, Washington, D.C. operatives have filled a need but they National Urban League, Washington, D.C. Associated Cooperatives, Inc., Richmond, have not been as successful as farm bu­ Nader, Ralph, Washington, D.C. Calif. reau, rural electric, and farm credit National Consumers Congress, Washing­ Central States Cooperatives, Inc., Schiller cooperatives, primarily because they ton, D.C. Park, Ill. have not had a readily available source North American Student Cooperative Or­ Federation of Cooperatives, New York City, ganization, Ann Arbor, Mich. N.Y. of needed funds for doing business. From National Council of Senior Citizens, Wash­ Florida Credit Union Guaranty Corpora­ Frank Sollars statement in San Fran­ ington, D.C. tion, Orlando, Fla. cisco came the movement by the Co­ Public Interest Economics Foundation, League Life Insurance, Detroit, Mich. operative League of the U.S.A. to under­ Washington, D.C. Michigan Credit Union League, Detroit, take efforts to mobilize support for such Rural Advancement Fund, National Share­ Mich. legislation. croppers Fund, Charlotte, N.C. MidAmerica Mutual Life Insurance Com· The bill passed the Senate with bi­ Southern Rural Policy Conference, Atlanta, pany, Minneapolis, Minn. partisan support. · Senate Majority Ga. Mid-Eastern Cooperatives, Inc., N.J. Sullivan, Leon, Board Chairperson and Op­ Milwaukee Area Cooperative Services, Wis. Leader ROBERT C. BYRD supported the portunities Industrialization Center, Phila­ Self-Help Development Council, Inc., N.J. bill as did Senate Minority Leader How­ delphia, Pa. TechniCo-op, Inc., Conn. ARD c. BAKER. One of the most significant Strongforce, Washington, D.C. United Housing Foundation, N.Y. statements came from Senator RoBERT United Auto Workers, Detroit, Mich. Illinois Credit Union League. DoLE of Kansas who said: United Steelworkers, Washington, D.C. Maryland Credit Union Share Insurance Mr. President, consumer cooperatives are United Mine Workers, Washington, D.C. Corp. on the forefront of the fight against inflation Universal Cooperatives, Minneapolis, Minn. · Wisconsin Credit Union Share Insurance and are a valuable tool for providing im­ MAJOR FARM AND RURAL ORGANIZATIONS AND Corp. proved consumer information to those who LEADERS Federation of Section 213's, New York City. use their services. Likewise, they can be an Blue Ridge Electric Membership Corpora- Appalachian Cooperative Federation. important focal point of community ac­ tion, Lenoir, N.C. W. Va. tivity and can provide the necessary organi­ Colorado Cooperative Council, Colo. Eastern Cooperative Housing Confer­ zational cohesiveness for uplifting certain Farm Credit Board of St. Paul, Minn. ence, Pa. communities and neighborhoods. Farmland Industries, Inc., Kansas City, Chatham Cooperative Co., Mich. Mo. Clifford Cooperative Association, Tripoli, From that original group of my fel­ Federated Rural Electric Ins. Corp., Madi­ Wis. low Ohians representing the cooperative son, Wis. Consumers Co-op of Richland County, Wis. league, this concept has developed sup­ Federation of Southern Cooperatives, Dineh Cooperatives, Inc., N. Mex. port from all phases of American so­ Epes, Ala. Ely Cooperative Association, Ely, Minn. ciety. This bill is endorsed by the Ameri­ Human/ Economic Appalachian Develop- Federation Cooperative, Wis. ment, Berea, Ky. Felch Cooperative Association, Felch, Mich. can Association of Retired Persons, the Finland Cooperative Co., Finland, Minn. National Council of Senior Citizens, the Iowa Institute of Cooperation, Ames, Iowa. Grand Portage Trading Post Association, AFL-CIO, the Credit Union National As­ Land O'Lakes, Inc., Minneapolis, Minn. Grand Portage, Minn. Landmark Cooperative, Columbus, Ohio. sociation, the Group Health Association Littlefork Cooperatives Society, Hibbing, of America, Farmland Industries, Inc., Lawrence, Douglas, past president, Colum- Minn. the National Rural Electric Cooperative bia Bank for Cooperatives, Columbia, S.C. Little Swan Cooperatives Society, Hibbing, Midcontinent Farmers Association, Colum­ Minn. Association, and the Ohio Farm Bureau bia, Mo. Federation, Inc., to single out a few. Meadowlands Cooperative Association, Missouri Farmers Association, Columbia, Meadowlands, Minn. There are currently 221 national, State, Mo. Negaunee Cooperative Services, Negaunee, and local organizations actively support­ Midland Cooperatives, Inc., Minneapolis, Mich. ing the national consumer cooperative Minn. Northern Lakes Cooperative, Hayward, Wis. bank bill. They are listed as follows: Mountain Management Institute, St. Paul, Parity Cooperative Society, Poskln, Wis. Va. PARTIAL LISTING OF SUPPORTERS OF THE NA­ Settler's Cooperative, Inc., Bruce Cz:ossing, Maine Cooperative Council, Bangor, Maine. Mich. TIONAL CONSUMER COOPERATIVE BANK BILL Minnesota Association of Cooperatives. NATIONAL ORGANIZATIONS AND LEADERS Wakefield Cooperative Association, Wake- National Farmers Union, Denver, Colo. field, Mich. AFL/CIO, Industrial Union Department, National Farmers Organization, Washing- Zim Cooperative Association of Zim, Minn. Washington, D.C. ton, D.C. Farmway Co-op, Inc., Beloit, Kans. American Federation of State, County and National Rural Center, Washington, D.C. Rudyard Co-op Company, Rudyard, Mich. Municipal Employees, Washington, D.C. National Rural Electric Cooperative Asso­ Moose Lake Cooperative, Moose Lake, American Association of Retired Persons, ciation, Washing'oion, D.C. Minn. Washington, D.C. National Rural Utilities Cooperative Fi­ Cooperative Sampo, Menahga, Minn. Alternative Economics, Washington, D.C. nance Corporation, Wa.Sihington, D.C. Boston Food Co-op, Boston, Mass. Allied Industrial Workers of America, Mil­ Ohio Farm Bureau Federation, Inc., Colum- Consumer Co-op of Eau Claire, Wis. waukee, Wis. bus, Ohio. Consumers' Cooperative Society of Palo American Friends Service Committee. Ozark Institute, Eureka Springs, Ark. Alto, Inc., Calif. Citizen Action Fund (Consumer Action Rural America, Washington, D.C. Cooperative Consumers of New Haven, Inc., Now, Consumer Federation of America, En­ Shelly, Oren, past president, St. Paul Bank Conn. vironmental Action, Environmental Policy for Cooperatives, St. Paul, Minn. Co-op Society of Marquette, Minn. Center, Public Citizen), Washington, D.C. south Dakota Association of Cooperatives. Equity Cooperative, East Troy, Wis. Consumer Federation of America, Washing­ Southern Cooperative Development Fund, Farmers Cooperative Trading, Mass. ton, D.C. Lafayette, La. Ferndale Cooperatives, Inc., Ferndale, Commission · on Religion in Appalachia, Utah Cooperative Association, Utah. Mich. Knoxvllle, Tenn. Wisconsin Electric Cooperative Association, Fort Greene Consumers' Cooperative So- Credit Union National Association, Madi- Madison, Wis. ciety, Inc., Fort Greene, N.Y. son, Wis. Wisconsin Federation of Cooperatives, Good Food Co-op, Fla. Cooperative League of the U.S.A. Madison, Wis. Gordon Park Food Co-op, Milwaukee, Wis. Consumers Union, Mt. Vernon, N.Y. Western Farmers Association, Seattle, Greenbelt Consumer Services, Inc., Md. Group Health Association of America, Wash. Washington, D.C. Greenway Park, Cooperative, Pittsburgh, Leadership Conference on Civil Rights, REGIONAL ORGANIZATIONS, COOPERATIVES, AND Pa. Washington, D.C. LEADERS Group Health Association, Washington, National Association of Housing Coopera­ Consumer Cooperative Managers' Associa­ D.C. tives, Washington, D.C. tion, Washington, D.C. Group Health Co-op of Puget Sound, National Housing Conference, Washing­ Foundation for Cooperative Housing, wash. ton, D.C. Washington, D.C. Hanover Consumers Cooperative Society, Network, Inc., Washington, D.C. Mutual Service Insurance, St. Paul, Minn. N.H. August 1, 1978 EXTENSIONS OF REMARKS 23791 Hyde Park Cooperative Society, Chicago, aimed at helping doctors diagnose and Norquist said, although coverage is good in Ill. treat alcoholism. Minnesota. Inter Cooperative Council, Ann Arbor, I commend to my colleagues the fol­ Asking a patient about drinking patterns Mich. lowing article by reporter Virginia Rybin should be part of routine medical examina­ Lansdowne Cooperative Association, Pa. tion, the film tells physicians. A key danger May Valley Co-op Community Inc., Reston, which appeared in the St. Paul Fioneer sign to look for is vagueness or denial in the Va. Press: answer, Norquist said. Metropolitan Non-Profit Housing Cor­ [Saint Paul Pioneer Press, July 31, 1978] A number of other problems-such as fam­ poration, Pittsburgh, Pa. NEW LOCAL FILM AIMS AT HELPING DOCTORS ily difficulties, multiple scars and fractures Michigan State University Student Hous­ and frequent requests for work excuses­ ing Cooperative, East Lansing, Mich. FIND ALCOHOLISM should alert doctors to probe deeper for pos­ Niskayuna Consumers Cooperative, Inc., (By Virginia Rybin) sible alcoholism, he said. New York. The doctor notices a suspicious smell on Norquist said it was felt that the film was Northern Valley Consumers Cooperative, the breath of a woman just diagnosed as needed because, to his knowledge, there is no New Jersey. being pregnant. movie on the subject for doctors except Palo Cooperative Association, Aurora, Her husband sees two physicians about a those_ by drug firms pushing products. The Minn. bad back. He tells both that he tends to fall film also is appropriate for the general public Third East Hills Park, Pittsburgh, Pa. up the stairs. because it does not get very technical, he United Cooperative Society of Fitchburg, None of the three doctors asks the key said. Mass. question: "How much do you drink?" The 27 -minute film cost $26,500 to make. Workers Cooperative Union, Inc., Conn. The sad result comes several months later, It was financed through contributions, in­ York Center Community Cooperative, Inc. when their baby is born with fetal alcohol cluding those of foundations and individual Common Market Co-op, Inc., Denver, Colo. syndrome. doctors. University Cooperative Society, Austin, The most important characteristic of the John Goodell, St. Paul film maker who was Tex. disease is failure to grow. It is associated nominated for an Academy Award in 1974 Arcata Cooperative Grocery Store, Arcata, with increased mortality and characterized for a film on brain-injured children, and his Calif. by mental deficiency, heart murmurs and associate, Tom Kohout, made the film with Rochdale Consumers Co-op. Society, Inc., other abnormalities. Women who drink heav- Norquist. New York. 1ly during pregnancy are at high risk of The husband and wife in the sequence St. Clair-Macomb Consumers Co-op, Rich­ having such a child. mond, Mich. about fetal alcohol syndrome are played by The scenario described is part of a film, Jim Lawless and Shirley Diercks, both acting Co-optical Service, Lansing Co-op Society, but the St. Paul doctor who was one of the Lansing, Mich. professionals. Norquist did filming as a mis­ film makers says the scene doubtless has been sionary in Africa and made a film called Midland Services, Inc. Cooperative, Ash- played many times in real life. land, Wis. "Love Is To Grow On" about mentally re­ In the film, the scene is replayed as it tarded children.e Range Cooperatives, Inc., Virginia, Minn. should have happened. Doctors asked the Cooperative Services, Inc., Detroit, Mich. right questions and a normal baby is born. University Students' Cooperative Associa- In real life, this may no longer be a pos­ DCM-A VALUABLE PROGRAM tion, Berkeley, Calif. sibility. Commonwealth Terrace Cooperative, Inc., The film is called "The Butcher, the Baker, St. Paul, Minn. the Candlestick Maker." The title refers to HON. HAROLD RUNNELS Baychester Consumer Cooperative Society, the fact that alcoholism can happen to any­ Bronx, N.Y. one. OF NEW MEXICO Cambridge Cooperative Corporation, Bos­ Before the play about fetal alcohol syn­ IN THE HOUSE OF REPRESENTATIVES ton, Mass. drome, recovering alcoholics in such varied Tuesday, August 1, 1978 Community Auto Cooperative, Austin, occupations as firefighting and professional Tex.e football appear. Some talk about their ex­ e Mr. RUNNELS. Mr. Speaker, it has periences. The film ends with flashbacks to come to my attention that the antigun some of these people. lobby of this Nation is once again pre­ EDUCATING PHYSICIANS ABOUT The old attitudes about alcoholism per­ paring to undertake an effort to abolish ALCOHOLISM sist among some physicians, despite the fact the National Board for the Promotion that the American Medical Association rec­ of Rifle Practice by having the funding ognized it as a disease in 1957, said Dr. Jo­ seph Norquist, Maplewood family practi­ for this program eliminated by Congress. HON. BRUCE F. VENTO tioner who helped make the film. Congress has, in the past, rejected pre­ OF MINNESOTA Norquist got involved at the urging of Dr. vious attempts to abolish this very valu­ IN THE HOUSE OF REPRESENTATIVES Thomas Briggs, White Bear Lake family prac­ able program. titioner and medical director of the St. This Nation was founded upon the Tuesday, August 1, 1978 John's Hospital chemical dependency center. principle of the citizen soldier ready to • Mr. VENTO. Mr. Speaker, in the Filming began in November, and the movie defend his homeland should the need United States, 10 million people suffer was shown for the first time last week. arise. Hopefully, this Nation will never Briggs said some doctors still have a hard from alcoholism and each affects time accepting alcoholism as a disease. Like again have to be a participant in armed four other persons. Alcoholism involves some non-physicians, they think alcoholics conflict, but we must certainly continue a total 50 million Americans which is could stop drinking if they wanted to and to be prepared for such an event. one-fourth of tht- population. Despite that treatment is ineffective, Norquist said. The National Board for the Promotion increased efforts to combat this disease, The National Council on Alcoholism, a pri­ of Rifle Practice was created by Congress much remains to be done to enlighten vate lay and medical group knowledgeable 75 years ago because it was determined the public about the nature of alco­ in the field estimates that only one doctor in 300 can adequately diagnose the disease that our civilization had advanced the holism. Early detection by physicians in a patient. American lifestyle to the degree that alert to its symptoms and armed with In a brochure prepared in connection with there was a complete dependence upon appropriate questions greatly enhances the film, it is noted that historically doc· the Government for marksmanship the patient's potential for diagnosis, tors received less than two hours of study training. The day of the citizen who had treatment, and ultimate recovery. Yet on alcoholism during four years of medical grown up with a firearm to defend his according to the National Council on school. home and provide food for his table was Alcoholism, only 1 doctor in 300 can ade­ The situation has changed in the past long gone, and, as a result, most citizens quately diagnose this disease. three or four years, Briggs said. Now some no longer acquire the marksmanship In St. Paul, Minn., a family practi­ programs devote 30 or more hours. Briggs skills to leave their normal occupation said the University of Minnesota Medical and quickly form into a military unit tioner-Or. Joseph N orquist-recognized School is trying to change attitudes in its the need to educate the doctors who program. to successfully defeat an aggressor. regularly see and treat alcoholics with­ It is estimated that 25 percent of all pa­ During World War II more than out knowing it. Working with two Twin tients in medical and surgical wards of gen­ 1,700,000 American citizens who were Cities film makers, John Goodell and eral hospitals are ·alcoholics, Norquist said. called into service had received , marks­ Tom Kohout, and raising $26,500 in They have been admitted for something manship training through the civilian Cl)ntributions from foundations and in­ else--such as abdominal pain, cirrhosis or marksmanship program before going dividual doctors, Dr. Norquist produced fracture, he said. into active duty with the military. At the a film called "The Butcher, the Baker Part of the problem is insurance, which conclusion of the war President Truman and the Candlestick Maker" which is often doesn't cover alcoholism treatment, said that if the country is to remain 2.3792 EXTENSIONS OF REMARKS August 1, 1978 strong, we must depend upon our c~tizens 1977 there were a total of 61 matches ator EDWARD KENNEDY expressing his being trained and capable of backmg up sponsored. thoughts on the DCM program. I would the Active and Reserve Forces. I would like to list for the Members like to include a portion o.f the general's The fact that today's average citizen the number of DCM-sponsored clubs and letter for my colleagues' consideration. is not adequately trained in the use of a their membership in each State: He said, firearm is evident by the fact that during I wish for the Members of Congress to State Clubs Members know that the civilian marksmanship pro­ the Vietnam conflict Army divisions gram ls a pledge to the American people that found it necessary to establish marks­ the means will be available to keep our coun­ manship training programs in the com­ Alabama ------6 466 813 try strong. It has been the citizens of the bat zone. The short, basic training course Alaska ------17 United States who have won our wars. The Arizona ------21 1,958 of the military certainly does not provide 413 citizens provide the insurance upon which sufficient training. The Army's basic Arkansas ------10 Congress may call when our Armed Forces California ------136 11,028 become overcommitted in battle. VVe must training course, for example, presently Colorado ------21 1,474 includes the firing of approximately 300 not count upon time being available in fu­ Connecticut ------55 3,763 ture wars to call our civilians into service rounds of ammunition using an M-16 Delaware ------7 1,444 and adequately train them for combat. service rifle. District of Columbia_____ 5 271 Every element of prem111tary training from One only has to look at the actions of Florida ------22 1,530 first aid to survival is most important when possible opponents to determine the im­ Trade Act of 1974). cooperation is further evidenced by the fact Most of the segments had to do with de­ When Canadian sources failed due to their that 9,000 U.S. units are operating in Mexico cisions faced by Lincoln, Jefferson, Jackson domestic shortages, Mexico became the sole without import duty on the basis of a and the other history-book Presidents. sourc·e of imports. Mexican Government administrative ruling. Until March 1, 1978, freight and hopper Similarly, U.S. cars are permitted to carry The show went off the air before we began cars from Mexico entered the United States freight from Mexico to the United States in­ getting People Magazine Presidents. Too bad. free of duty. U.S. imports of cars from Mex­ stead of returning empty to the U.S. All in It would have been interesting seeing how ico amounted to U.S. $10.5 million in 1977. all, this close cooperation has been bene­ "Mr. President" handled some contemporary The Mexican exporters had no way of realiz­ ficial to both countries. presidential problems. ing that th~se imports constituted more The change from duty-free importation Today, a script might sound like this: than the 50% limit per country of the total of freight cars to an 18 percent ad valorem "Mr. President, may I interrupt you !or a imported in this category. On the basis of duty is solely the resul-t of an automatic moment?" 23794: EXTENSIONS OF REMARKS August 1, 1978 "Yes, Rufus, sit down. I can use a moment clear now. I see things so clearly. I can see the United States himself, who had away from guiding the ship of state through the planet Mars in your lampsha.de. Oooh, placed a high priority on capturing the troubled waters and giving this nation a gov­ crazy. There are people on Mars." ernment that is as good, as honest, as sweet "Mr. President, you rang for me?" Weather Underground terrorists who and cuddly as the American people, govern­ "Yes, Johnny Bob. Rufus has just told me were bombing buildings and killing inno­ ment that is efficient, loving, government we have a drug problem in the White House. cent people throughout the country. that is ..." I want it stopped." The San Antonio Chapter of the So­ "I'm afraid we have a problem on our "You wa' wha?" ciety of Former Special Agents of the hands, Mr. President." "I want it stopped." Federal Bureau of Investigation has pro­ "That is what I'm here for, Rufus. What "Wha' stop?" vided me with a copy of its recent reso­ is it this time? Is my sister trying to convert "The drugs." lution opposing these indictments. another famous deviate? Why can't she try "You got drugs, man?" to make some famous nice people get re­ "Man? I'm the President." I share the view of this organization born?" "Oh, yeah, groovy, wow. I mean, you look that we must uphold and strengthen the "No, it isn't your sister." like the President, so you must be the Presi­ Federal Bureau of Investigation as our "Well, I hope it's not Bllly again. You dent. Hey, I dig." Nation's only domestic intelligence agen­ know, I'd sit down and have a talk with him "Johnny Bob, what is that thing you are cy to protect our people from terrorism nbo-.1t his behavior, but every time I try, he puffing on?" and subversion. throws empty beer cans at me and shouts: "This? Just my pipe, Mr. President." I would like to include the resolution 'Mommy loves me more!' It's not easy being "I didn't know you smoked a water pipe." at this point in the RECORD: a big brother." "Oh, sure. Very cool smoke. Want a puff?" "Billy hasn't done anything today." "NO THANKS. NOW, I WANT this drug SOCIETY OF FORMER SPECIAL AGENTS OF THE "Then it's .Hamilton, isn't it? If he spits directive out immediately. So get hopping." FEDERAL BUREAU OF INVESTIGATION, SAN Amaretto on one more woman he's all "Right, right. I'll hop. Hoppity hoppity ANTONIO CHAPTER through. You'd think he'd remember that hop." RESOLUTION this is supposed to be a populist administra­ "Johnny Bob. I didn't mean you should Whereas, the San Antonio Chapter of the tion and spit Coke instead of a fancy hop llke a rabbit. Stop hopping around my Society of Former Special Agents of the Fed­ liqueur." office." eral Bureau of Investigation is deeply con­ "It's not Hamilton, Mr. President." "I don't mind. It's fun. Hoppity hop, hop­ cerned about the indictments of former Act­ "Is it Bert? Bert's not writing himself pity hop." ing Director L. Patrick Gray, former Asso­ funny checks again is he?" "Rufus, did you see that? He hopped right ciate Director W. Mark Felt and former As­ "No sir, it isn't Bert." out the door." sistant Director Edward S. Miller; and "Then it must be Andy Young. What's he "Yes, Mr. President. He hops good." Whereas, these three officials had no evil said today? That we're all in the Klan?" "Rufus, are you taking another aspirin or criminal intent but were motivated by "No, Mr. President. I'm afraid that we have with stripes?" devotion to duty and obedience to established a dope problem." "For my head, sir." authority of the executive branch of the "I already know that, Rufus. But which "Maybe you need fresh air." government in preserving the lives and rights dope are you talking about? My cousin, "Good idea, sir. I'll go outside." of innocent victims of senseless bombings; Hugh? Mi nephew? By the way, can I go to "Rufus! Not out Il.lY window! Rufus, stop and court and legally change my name to Smith flapping your arms. You can't fly! Rufus? Whereas, the U.S. Department of Justice, or Jones, and stay on as President? It might Oh, my. I'll have to talk to Rafshoon. I'm after waiting until the final moments before help my image. Have Rafshoon check that sure a legal name change is permitted by the Statute of Limitations would have barred out." the Constitution." e prosecution of any type, chose to prosecute "Sir, we have a drug problem. Here. In the loyal and patriotic servants of the people White House. On your staff." rather than to prosecute willful terrorists; "My White House staff?'" and "Yes sir. Dr. Bourne is in trouble. And he FURTHER HARASSMENT OF THE Whereas, Attorney General Griffin Bell au­ has told the press that others on your staff FEDERAL BUREAU OF INVESTIGA­ thorized these .111-advised indictments with have been smoking marijuana, sniffing co­ TION the consent and approval of President Jimmy caine and things like that." Carter and Vice President Walter Mondale "This is serioUs. Drugs in the White House. for the obvious purpose of placating the I knew they acted strange. But I thought HON. ELDON RUDD liberals, leftists and various other groups they were just drunk." who have no real concern for the defense "What are you going to do, Mr. President?" OF ARIZONA and security of our Nation; now, therefore, "Obviously, I've got to take bold, decisive IN THE HOUSE OF REPRESENTATIVES be it action. So is there any way we can keep it Tuesday, August 1, 1978 Resolved, That the entire membership of quiet?" the San Antonio Chapter of the Society of "No sir, the press knows about it." • Mr. RUDD. Mr. Speaker, the Justice Former Special Agents of the Federal Bureau "Hmm. They didn't get their drugs from Department has dropped its prosecution of Investigation desires to place on record congressmen, did they? If so, we could blame of former FBI Special Agent John its disapproval and condemnation of such Congress." reprehensible and shortsighted actions by "Not that we know of." Kearney, who had been charged with im­ our national leaders; and be it further "Too bad. Well, then there is only one ,proper use of wiretaps and other investi­ Resolved, That the President, the Vice thing for us to do. Let's wait for the polls to gative techniques to find and apprehend President and the Attorney General are see how the people feel about drugs in the fugitive terrorists of the so-called strongly urged to have these indictments • White House, then Rafshoon can decide. Weather Underground. dismissed without further disgracing and Maybe it is a good thing. Can all teen-agers The Attorney General's decision to harassing these loyal public servants and vote yet?" seek dismissal of the Kearney indict­ their families; and be it further "Mr. President, I think you have to do Resolved, That the President, the Vice something now." ment was a sound one. Kearney was do­ President and the Attorney General be and "Yes, you're probably right. I'll ring for )ng his job as he was told to do it by are hereby urged to take heed of current Johnny Bob to come in here and I'll issue 'his superiors, with the knowledge and tragedies caused by terrorists in Italy, West an immediate directive forbidding drug use." approval of the Director of the FBI, the Germany and other parts of the world; that "Groovy." Attorney of the United States, and prob­ our Nation has only the FBI as a. domestic "What was that?" ably even the President himself. intelligence agency to prevent the Marxists "I mean, yes, Mr. President." However, the Justice Department has from achieving their avowed final goal of "Rufus, why are you sitting there staring now sought and obtained indictments total destruction of all non-Marxist forms at my lampshade?" of government; and be it further "Well, it is a pretty lampshade, sir. The against L. Patrick Gray, former Acting Resolved, That copies of this resolution light sort of glows through the shade and Director of the FBI, W. Mark Felt, for­ passed unanimously on May 11, 1978, be fur­ gives it a deep blue. I mean. it is like looking mer Associate Director of the FBI, and nished to the President, the Vice President, in.to the sea. You know wha.t I mean, Mr. Edward S. Miller, former Assistant Di­ the Attorney General, the Chairmen of the President? I mean, wow." rector of the FBI. in the same case for Senate and House Judiciary Committees and "RUFUS, WHAT IS THAT PILL you just other appropriate public officials and news whi:-h Kearney was initially indicted. media representatives. took?" This is further unwarranted harass­ "That? Asoirin, Mr. President." Passed and approved this 11th day of May, "Aspirin? With green and yellow stripes?" ment of loyal former FBI officials who, 1978, at San Antonio, Texas. "New brand, sir." like Kearney, were acting with the knowl­ Attest: "I hope it helps. Headaches can be awful." edge and approval of the Attorney Gen­ CLARK ANDERSON, Secretary. "Yes sir, it helps. I mean, my head is eral and probably even the President of GEORGE KEEFER, Chairman .• August 1, 1978 EXTENSIONS OF REMARKS 23795 DEEP SEABED MINING BILL We import manganese from four na­ Washington: the readiness to tell the tions-Brazil, Gabon, Australia and poor they've got to tighten their belts. South Africa-and are not likely to lose Ms. McGrory cites two major issues in HON. ANTHONY C. BEILENSON all sources simultaneously. We only im­ evidence: the proposals of the Federal OF CALIFORNIA port 15 percent of the copper we need. We Reserve to pay out hundreds of millions IN THE HOUSE OF REPRESENTATIVES import 50 percent of our nickel from of taxpayers' dollars in interest on bank our ally and neighbor, Canada. We use reserves, the bulk of which would go to Tuesday, August 1, 1978 only small amounts of cobalt, and substi­ the Nation's biggest banks, in order to e Mr. BEILENSON. Mr. Speaker, last tutes for cobalt are available. Given an persuade banks to keep their member­ week we voted on a bill which will great­ accurate picture of our mineral use and ship in the Fed; and tax proposals now ly affect the division of resources of 70 supply, we are not mineral dependent on moving forward which would skewer percent of the Earth's surface. The bill's one or a few nations in the way we are tax breaks toward the affluent instead of proponents call it a "regulatory" measure oil dependent. toward the lower brackets, as the Carter to facilitate the development and extrac­ In addition, the timetable for com­ administration proposed. tion of deep seabed minerals pending mercial extraction from the deep sea­ Her column of July 28, 1978, follows: adoption of an international agreement. bed at the very earliest is 1985 or 1986. (From the Washington Star, July 28, 1978] In reality, this bill would try to legitimize Major investment decisions are still far A WAVE OF SYMPATHY FOR THE the taking by U.S. companies of minerals enough in the future to make unilateral WELL-OFF SWEEPS THE COUNTRY which the United States has no right to legislation unnecessary, and prototype (By Mary McGrory) take. The United States has agreed (by mining and exploration can continue Some sage once said, "I've been rich and U.N. General Assembly resolution) that without risk to the Law of the Sea Con­ I've been poor, and rich is better." the deep seabed riches are "the common ference or to the ocean environment It's getting better all the time, too. heritage of mankind" over which we without the passage of this bill. A wave of sympathy for the well-off iS will not claim sovereignty. This bill, how­ sweeping the country. The questionable benefits of this bill Ten years ago, we were talking about a ever, would authorize private mining are far outweighed by the risks of re­ war on poverty. Today, we are told 'that the consortia to mine minerals which the percussions from other nations in re­ really afflicted members of our society are United States has no right to claim. sponse to or unilateral action. As we the comfortable. The repercussions of this unilateral claim jurisdiction over some of the sea­ You don't hear about welfare reform, grab of resources which are "the com­ bed or set up our own framework legal­ which would give those who have nothing a mon heritage of mankind" could far out­ little something. We're talking about people izing the taking of the minerals, other who have it keeping it. The country club has weigh the claimed benefits of this legis­ nations are likely to retaliate oy further replaced the ghe'tto as an area of national lation. Passage of this bill would jeopar­ extension of their own claims to a terri­ concern. We worry about the homeowner dize the future of the Law of the Sea torial sea or an exclusive economic zone more than the homeless. Conference and all of the provisions our or to impede progress s.t the Law of the California pioneered in the doctrine that delegation has already been successful Sea Conference in areas that still need we've been doing too much for the have­ in negotiating for the national security to be agreed upon. nets. Proposition 13 was aimed at too much of the United States and the peaceful government spending, but the way Wash­ use of the oceans. Progress has already This is a particularly inopportune time ington reads l:t, it's a message to the poor to risk a further widening of the north­ to tighten their belts. been made in resolving difficult issues of south economic gap, as significant prog­ That's why the big topic on Capit91 Hill freedom of navigation, maritime pollu­ ress was made at the last Law of the is not tax reform, but tax cuts. Jimmy Car­ tion, settlement of disputes over the liv­ ter can say all he wants to about "huge tax ing resources of the exclusive economic Sea Conference in Geneva last spring. windfalls for millionaires" if capital gains zone, and numerous other issues. On Ambassador Elliot Richardson said of taxes are trimmed, but he is wasting his balance I believe our delegation ana that seventh session of the Conference breath. The only question is how much? our Ambassador to the Law of the Sea that the delegates "focused on the most In case the House Ways and Means Com­ critical hardcore issues with an inten­ mittee was thinking of being niggardly, Conference would agree that the provi­ Chairman Russell Long of the Senate Fi­ sions thus far agreed to are quite impor­ sity and a spirit of sober determination without precedent in the history of the nance Committee made a speech to the Na­ tant to our national security. We should tional Press Club in which-to no one's not, therefore, lightly take actions which Conference." He said of the negotiations surprise-he revealed that he has something would disrupt progress toward a Law of on deep seabed mining in particular that, big in mind for people with large incomes. the Sea Treaty. "there was none of the public posturing His committee, he announced "will rec­ characteristic of earlier debate on these ommend a large cut in the tax rates on capi­ Proponents of this bill claim two issues. Rather, the Conference revealed tal gains." benefits from its passage. They claim we a more sophisticated understanding of The Ways and Means Committee re­ need the deep seabed minerals for their the economic stakes at issue and broad sponded at once. strategic importance, and they claim we acceptance of the aim of making the par­ People who sell their house will not have need them for our economic security. to pay capital gains taxes on their profits, allel system of seabed exploitation work- unless they were more than $100,000. Since Neither claim is substantiated. Assistant able." ' Secretary of Defense David McGrifford, home-sale profits beyond that level are rare, In an atmosphere of progressive nego­ the upper-brackets can rest easy. testified before the Internat!onal Rela­ It's no wonder that in such a climate, the tions Committee that, in the event of an tiating unprecedented in the Law of the Sea Conference, we would be acting in chairman of the Federal Reserve Board would interventior in our supply of minerals, come forward with an inge~ious proposal to the United States already holds suffi­ a reckless and contemptuous way if we be kind to bankers. cient stockpiles of the types of minerals now enact unilateral deep seabed mining G. William Miller appeared before a sub­ that can be derived from managanese legislation.• committee of the House Banking Committee nodules through deep seabed mining. He and suggested that we make it more interest­ ing, and profitable, for banks to belong to the further stated that the deep seabed min­ Fed by paying them interest on their reserve ing operations would be too subject to MESSAGE TO THE POOR: deposits. An increasing number of banks, interdiction to be relied on for a supply TIGHTEN YOUR BELTS especially small ones, have been dropping out. of these minerals in times of conflict. Chairman Henry Reuss of the full banking committee thought that Miller's membership As a source of economic security, the HON. HENRY S. REUSS drive was a terrible and inflationary idea, un­ minerals are not as crucial as the pro­ becoming to an official who endorses budget­ ponents of this bill would have us be­ OF WISCONSIN cutting for everyone else. lieve. Deep seabed mining could supply IN THE HOUSE OF REPRESENTATV7" Rep. Mary Rose Oakar, D-Ohio, couldn't four important minerals which we use­ Tuesday~ August 1, 1978 quite see how the public would be served by giving $23 million in interest to the Bank of maganese, copper, nickel, and cobalt. • Mr. REUSS. Mr. Speaker, Columnist America. We are not so dependent on any country Mary McGrory of the Washington Star She thought Miller would be too good a for these that we are likely to be caught has put her finger on a disturbing mood friend to Chase Manhattan if he handed over in an economically precarious situation. in the country that she sees reflected in $26.3 mlllion to it. 23796 EXTENSIONS OF REMARKS August 1, 1978 She seemed also to feel some worthier ob­ It would be easy to get up on the soap­ While sharing King's sentiments, many ject of federal charity could be found than box and demand new trade barriers to Japanese businessmen shy away from the Citibank, which would be given $15 .2 million. keep out Japanese investment and goods. "coprosperity sphere" label out of fear that Miller reproved her. Such a policy would be simplistic and some Americans might recall how that pre­ "I don't think we can say just because a cise term was used by World War II Japanese bank is large it shouldn't get its proper share. self-defeating. This is ·no time to revive militarists to justify their then-far-flung If we have a 10 percent tax cut, General Smoot-Hawley. Pacific empire. MOtors will get more tax dollars in its tax At the end of the article, after the "But, of course, we do see it that way" said reduction than a smaller corporation. It is a reader has absorbed the "yellow jour­ one smiling Japanese banker in San Fran­ natural consequence of treating everyone nalism" portions, the actual problem is cisco. "We see California already as part of alike." described. American businesss has been Japan. Oh, yes, California Prefecture." Rep. Parren Mitchell, D-Md., chairman of But the increasing power of Japan over very lax in seeking foreign markets. Our the western economy is no laughing matter the Black Caucus, voiced an unfashionable Government has no export policy, and thought: to others here-ranging from industrialists "Speaking personally, I always will be on our tax programs discourage investment. to labor union officials and native Ameri­ the side of the little guy." American workers have the worst pro­ cans-who fear that a quasi-colonial rela­ He is hopelessly out of step. The "trickle­ ductivity in the world. In other words, tionship is developing between the western down" theory of economy, the favorite of the if any one is to blame for the success of states and the island nation. Eisenhower years, is back in the saddle, de­ our foreign competition, it is ourselves. They claim the West, in classic colonial spite a Democratic president and a Demo­ The Investment Incentive Act is one at­ fashion, is already surrendering its vital nat­ cratic Congress. ural resources in exchange for much more tempt to get this country back on track, costly manufactured products-a pattern If the poor will just be patient, the rich, to encourage investment, to develop new who have kept their money in the vault so which last year caused the western states to Uncle Sam cannot get at it, will, with capital technology, new jobs, and economic run up over a $3 .6 billion deficit with Japan, gains taxes reduced, reinvest their hoard in growth. twice the region's 1976 trade imbalance. the marketplace, and all will profit from a The second article is an editorial on Kazutoshi Satta, manager of the San Fran­ revived economy and a strengthened dollar. American productivity. Or rather, it de­ cisco office of the mammoth Mitsui Trading Miller, who was a corporate chieftain until tails the lack of productivity by Amer­ Co. and director of the Northern California. he took over the chairmanship of the Fed, ican workers. While the AFL-CIO de­ Japanese Chamber of Commerce, said he ex­ obviously believes that the public will benefit pects the present Japan-western states trad­ mands protectionist trade legislation, ing pattern to continue in the coming years. from easing "the burden" on the banks who while inflationary wage settlements are loyally retain their membership in his orga­ With the exception of airplanes and maybe nization because the new windfall would negotiated, the productivity of the some canned foods, Satta said he believes mean they would pay more taxes. American worker hovers around zero. western industries will have little chance of But Rep. Bruce Vento, D-Minn., said that Unless there is a change in attitude, the selling finished products in Japan. big banks, which have large write-offs, rarely United States will go the way of Great "Our processing industries are simply bet­ pay at a rate of 3.6 percent. The smaller kind, Britain. What is surprising about the ter than in the United States," said Satta, which do not have overseas investment losses editorial is that the Post, once a strong whose 300-year-old company has more than on the grand scale, would bear the burden. 140 trading offices in some 80 nations. "If critic of any lowering of capital gains the United States wants to sell us finished Vento, Reuss and others on the committee taxes, admitted the need for investment. who somehow can't scratch up pity for the consumer products, they don't have a suffering giants, believe that the banks get A lower capital gains tax is cited as one chance," enough gO'Odies as it is from their Fed mem­ route for increasing investment. I doubt Japan's continuing reluctance to purchase bership: coin-wrapping, check-clearing and that the Post will endorse the Steiger American-manufactured goods mak~s some armored car service. amendment, but at least it recognizes western business leaders fear their region Reuss suggests that interest payments the problem. The articles follow: may become a mere "resource colony" of an should be limited to the amounts currently ever-expanding Japanese imperium. JAPAN Is BUILDING ECONOMIC EMPIRE IN "The question is whether we want to be­ not charged for these privileges. It would cost AMERICAN WEST the Treasury one-fourth as much as the come a banana republic," said E. Floyd Miller payoff proposal, which he estimates (By Joel Kotkin) Kwamme, vice president of National Semi­ would run the government "directly and in­ Conductor, a large electronics manufacturer directly, $700 million annually." SAN FRANCISCO.-From the highrise office in Santa Clara, 40 miles south of San Fran­ It seems a large amount, but not to the towers of this western financial c·apital to the cisco. "The problem is that manufacturing friends and protectors of them as got.e rich wilderness lands of Alaska, Japan is creates more jobs than agriculture. If we building a new economic empire in the Amer­ think we are trying to balance our trade im­ ican West. balance with the Japanese by selling them Japanese interests, enriched by a huge trad­ beef and grapefruit, we'll end up killing our THE ROAD TO PROSPERITY-PART ing surplus with the United States and the industrial base." XV-THE SELLING OF AMERICA skyrocketing value of their yen currency, are The semi-conductor industry, which makes quietly buying billions of dollars' worth of the components parts for computers and western land, timber, fish, agricultural prod­ other advanced electronic products, is one of HON. WILLIAM A. STEIGER ucts and industrial facilities. a number of Western industries, including OF WISCONSIN Close to half of Japan's almost $29 billion lumber milling, fish processing, steel and IN THE HOUSE OF REPRESENTATIVES trade with the United States in 1977 went autos (almost one-quarter of California's cars through western ports, where thousands of come from Japan, twice the national aver­ Tuesday, August 1, 1978 Japanese cars, televisions and other manu­ age) , that are reeling from strong Japanese factured goods were exchanged for western competition. • Mr. STEIGER. Mr. Speaker, yester­ minerals, timber and farm products. While American manufacturers still con­ day's Washington Post had two interest­ Over the last decade in each of the fl. ve trol 60 percent of the world's semiconductor ing articles which, in a nutshell, explain Pacific western states-Alaska, Hawaii, Ore­ market, the industry has been singled out the motivations for my sponsorship of gon, Washington, and California-Japan has for domination by the Japanese industrial the Investment Incentive Act. emereged as both prime international trading establishment, backed financially with gov­ The :first article details the heavy Jap­ partner and investor, establishing an eco­ ernment research money. nomic sphere of influence unprecedented in Already, enriched by the over 33 percent anese investment on the west coast. The the often-xenophobic West during recent increase in the value of the yen since 1972, tone of the article, unfortunately, is an times. some Japanese semiconductor companies are inspiration for know-nothing jingoism. Many western business and government moving into places like Santa Clara's "sll1- In short, it states that the surplus dollars leaders are seeking to encourage this growing cone valley,'' perhaps the world's single most derived from the substantial U.S. trade interdependence with Japan as a way to ex­ important concentration of high-technology deficit with Japan are being used by the pand the already prospering economies of industry, buying out small American firms, Japanese to invest in U.S. resources and their states. hiring skilled American engineers and, in the technology. The article cites the semi­ "We don't want to rely any more on the process, according to National's Kwamme, conductor industry-one of our high establishmen+. of the eastern states. They're "picking for themselves the fruit of our Europe-oriented, and our future is with technology.'' technology resources-as one area tar­ Japan and the Pacific Rim," said Richard At the same time, American semiconduc­ geted for investment. The intent is to King, director o! the newly established Cali­ tor executives complain that their products obtain technology for domestic Japanese fornia Office of International Trade. arc being restricted on the Japanese home industries. Once they have the tech­ "The Japanese see California as part o1 market by tough import regulations and nology, they will compete effectively with their 'Pacific coprosperity sphere,' and we bet­ alleged government-business collusion in the American firms. ter be responsive to that,'' he said. Tokyo. August 1, 1978 EXTENSIONS OF REMARKS 23797 Japanese business leaders claim that their several native American vlllages have had a!ter 1968, the trend dropped to halt that intrusion into the previously American­ run-ins with Japanese firms seeking to pur­ rate. Since late 1976, it has been almost fiat. dominated semiconductor and computer in­ c.hase their abundant timber and fish re­ That departure is consistent with two dustries is necessitated by the rapid rise in sources. other surprises. Inflation has been running the value of the yen, which has made nu­ "I think we're becoming very concerned considerably higher in recent months than merous Japanese products-including shoes, about them." said Tom Richards, editor of most people expected, and unemployment textiles and radios-less competitive with The Tundra Times, Alaska's oldest native­ has been considerably lower. Output over those of such Asian countries as Taiwan and owned newspaper. "The Japanese are very the past year has been raised by putting more Korea. experienced in the corporate world, and some people on payrolls, not by improving each "We have to keep exporting our manufac­ of our contacts with them have not been the person's capacity to produce. tured goods to survive, but we are finding best. The native companies are going to be It's a striking departure, and one explana­ our neighbors in Asia are making the goods very cautious in dealing with them from now tion may well lie in the rather low rates at we used to make, so we have to go into high on because they're trying to assume control which business has been investing new capi­ technology in a big way," said Mitsui's Satta. in the fisheries area." tal. That, in turn, may be the result of low "I know these days computers are delicate Despite these growing concerns about profits. Another possibility is the cost o! the commodities, but ou:- technology level must Japan's economic influence over the West, new environmental and safety rules, requir­ keep improving so someday there's a chance most states, including Alaska, seem anxious ing industry to invest heavily in equipment we will be able to ship lots of computers here. to strengthen their links with the Asian to control air and water pollution. The Americans are good at inventing new economic powerhouse. Whatever the influences controlUng pro­ machines, but, in the ability to apply those Dick Eakins, Alaska's director of Industrial ductivity, they vary enormously from one inventions, well, maybe the Japanese have Development, said he believes the need for country to another. In international com­ more ability." the Japanese market far outweighs other petition, the United States is currently not Opposition to the growing power of Japa­ considerations. doing well. The following brief table com­ nese investment--estimated by top Japanese "Look, the close relationship is already pares the increases in productivity in manu­ business sources at $25 billion last year, more there. Alaska must look to Japan as its major facturing, for the decade 1967-77, among than a third of it in the western states-is market for the future, and we know they see some of the major industrial powers. also developing in the Pacific Northwest, us as a long-term source of raw materials," United States 27 percent where highly active Japanese-owned firms Eakins said. "We already have a Tokyo office, France 72 are buying logs and fish in huge quantities and we're sure going to expand it." West Germany 70 and shipping them back to Japan for proc­ Japan's critics are leading some of that Italy 62 esssing. nation's businessmen to urge their govern­ Japan 107 George Cassidy, president of the Portland­ ment to loosen some barriers against Amer­ Canada 43 based Lumber Production Industrial Work­ ican exports. Great Britain 27 ers, claims Japanese reluctance to buy fin­ But some leading western businessmen, There is a tendency in this counttry to ished U.S. lumber instead of logs has forced like Robert Noyce, chairman of Intel, a lead­ regard Britain as the world's great example the closure of more than 100 sawmills ing California semiconductor manufacturer, of industrial decline. But you wlll note that throughout the Northwest over the past say nothing substantial can be accomplished the rate of productivity gain in British fac­ decade. about the trade deficit until American gov­ tories over the past 10 years has been the "The exporting of the raw materials from ernmental agencies and workers learn how to same as in American factories. which our jobs spring," Cassidy insists, "is match the discipline and tough marketing Since no one is quite sure why the Ameri­ the exporting of our jobs." policies of the Japanese. can rate has fallen, no one is in a position George Hess, a spokesman for Weyer­ "We businessmen are sick of being the to offer a sure remedy. But these latest pro­ haeuser, a major log exporter to Japan, says scapegoats of everything. The problem is the ductivity figures may well strengthen the the Japanese prefer to buy logs rather than American worker and the consumer, too. impulse in Congress to cut taxes on capital finished timber because "they are artisans. We're all screwed-up, the whole fabric of our gains, in an effort to increase investment. They cut their wood differently than we do." society," Noyce said. Beyond that, it's also necessary to consider The Weyerhaeuser spokesman added that "If you're shipping out dollars, if you can't the possib111ty that some of this change may congressional legislation has forced American pay your bills, you have to sell your house to lie beyond the reach of government policy. lumber companies to ship all their intra­ the Japanese so that you can drive your A good many Americans' ideas about work, national trade in American vessels, and goddam Toyota. Maybe if we sell it all, we incomes and economic growth began to claimed that makes it far too expensive for can nationalize them. That's what everyone change around 1968. These new attitudes northwestern lumbermen to trade with their else does when it goes too far." may now be showing up in the statistics on traditional East Coast markets. the nation's economic performance.e Hess also said the rejuvenated U.S. south­ AMERICAN PRODUCTIVITY ern timber industry and Quebec now supply Throughout most of the years since World most of the East's lumber needs, leaving War II, productivity in the American econ­ BRITISH BACKTRACK ON COMMIT­ northwestern companies to seek foreign, omy has risen briskly. As it went up, it car­ MENT TO RESPECT HUMAN RIGHTS mostly Japanese, markets. ried with it people's earnings and standards There is also growing concern in the North­ of living. But the rise began to slacken about west about reported attempts by Japanese a decade ago, and for the past year and a half HON. MARIO BIAGGI interests to buy out or control many Amer­ there has been hardly any rise at all. Of all OF NEW YORK ican fishing companies in the region. Ed the changes overtaking the American econ­ Furia, co-chairman of the North PacL"ic omy, the behavior of productivity is one of IN THE HOUSE OF REPRESENTATIVES Ocean Protein Coalition, a U.S. fishing lobby the most peculiar-and one of the most dis­ Tuesday, August 1, 1978 group, said he fears that Japanese-owned quieting. companies in the Northwest are giving for­ The immediate consequence of no produc­ • Mr. BlAGG!. Mr. Speaker, as many eigners control of a key natural resource. tivity gains is that inflation will become of my colleagues are aware the Ad Hoc "I don't see anything wrong with majority harder than ever to control. But if the pres­ Congressional Committee for Irish Af­ investment in areas like television and cars," ent pattern continues, it wlll also ignite un­ fairs and its 110 members are committed Furia said, "but I don't think that we should comfortable political questions about divid­ to both exposing and finding the means allow majority foreign investment in strate­ ing the pie in a country that has come to to end the serious human rights prob­ gic resources." expect, and to count on, steady increases in lems which afflict Northern Ireland. A high-ranking executive of one Japanese bot~ public and private wealth. Nobody really majority-owned fishing firm, however, dis­ knows why productivity has stopped rising. Prior to the establishment of the com­ agreed with Furia's assertion, claiming that All explanations are, to one degree or another, mittee I and others in the House spent the Japanese investors have proven a god­ speculative. But the evidence suggests that much time discussing the findings of the send for many foundering northwestern fish­ it is no minor passing blip on the chart. European Court and Commission on Hu­ ing companies. The causes seem to lie deep in the changing man Rights which had cited Britain for "The fishing business in this country has structure of the national economy. varying degrees of inhumane treatment not been all that good," 10aid the executive, Productivity is simply the average output of political prisoners in facilities under who asked that neither his name nor that per hour of labor. The Labor Department their control in Northern Ireland. The of his com~any be used. "Most of the com­ computes it every three months, and it has attention in part made Britain admit panies which have sold out-or rather sold just published the figures for the spring their guilt and pledge · to cease these to--Japanese investors did so because they quarter of this year. They show that pro­ practices. couldn't keep their heads above water, finan­ ductivity was rising at the minuscule rate of cially. Prices are up simply because the Jap­ ii .l percent a year, after having fallen during The recent release of the report by anese are willing to pay more for the fish." the winter. Through the 1950s and most ot Amnesty International on inhumane Other rumblings about the Japanese power the 1960s, it was going up at an impressive treatment of political prisoners at the in the West are coming from Alaska, where pace o! nearly 3 percent a year. In the years Castlereagh Barracks in Northern Ire- 23798 EXTENSIONS OF REMARKS August 1, 1978 land made this pledge almost worthless. Mr. Sean McCann, chairman of the Asso­ by the post mortem that the boy was shot in Amnesty International cited 78 different ciation for Legal Justice, based in Belfast, the side-back of the head. There is over­ cases of mistreatment all of which will commented: "This gentleman (Mr. Pilling) whelming evidence that there is a case to be placed into the RECORD by the ad hoc is simply playing with words. When the answer and those soldiers should at the committee. British Attorney General gave a solemn un­ very least have been suspended from duty, dertaking after the Strasbourg verdict that if not placed under immediate arrest.e However in a rather startling devel­ Britain would stop torturing people, it was opment it has been reported in the Irish generally understood that this was to in­ press out of Ireland that Britain is now clude all forms of inhuman and degrading claiming they never made any pledge treatment. AGEE'S COVERT ACTION that they would cease the inhumane "Everybody knows, of course, and the re­ practices cited by the European Commis­ cent Amnesty report confirms it, that serious 111-treatment of arrested persons has con­ sion and Court. This is most tragic ·and tinued up to the present time." HON. LARRY McDONALD demonstrates an insensitivity by Britain "Instead of so called verbal assurances, OF GEORGIA which is not befitting its heritage as a what is really required of the British Gov­ IN THE HOUSE OF REPRESENTATIVES champion of freedom and due process. It ernment is that they quite simply cease do­ further places a burden of responsibility ing what they are doing," added Mr. McCann. Tuesday, August 1, 1978 on the administration to recognize that e Mr. McDONALD. Mr. Speaker, in the a human rights problem does exist in THE BHITISH CHEEK period since January 1975 when the Northern Ireland and the British are It w11l come as a very big surprise to the House Committee on Internal Security responsible. general public, both in Britain and Ireland, was ended, we have witnessed a broad I call upon the British Government to to learn that the British Government did not attack on this country's foreign and do­ clarify their position relative to this mat­ give an undertaking to the European Court of Human Rights last year that lll-treatment mestic intelligence agencies. The enemies ter. While awaiting this I wish to insert of any kind would not happen again during of the U.S. intelligence community, many two articles from the Irish Times the interrogation procedures. of whom openly have supported Soviet, second being a main editorial. It is revealed in today's paper that the Cuban, and Red Chinese-sponsored ter­ TORTURE Vow WAs 'NEVER GIVEN' private secretary to the Northern Ireland rorist movements in the Third World, (From David Brazil in London) Office, Mr. J . G. Pilllng, told the Irish Civil have been unimpeded in their selective The British Government did not give an Rights Association in a letter ... "no govern­ leaking of intelligence agency documents, undertaking to the European Court of Hu­ ment could be so sure that no member of exposing of covert programs, and iden­ man Rights in 1977 that ill-treatment of any its security forces wm ever depart frorri the tification of intelligence personnel. kind would not happen again during inter­ strict rules laid down for the treatment of prisoners in custody so as to make such a Measures to strengthen our Federal rogation procedures. intelligence agencies have languished be­ This point was made in a letter to the claim with certainty." Northern Ireland Office, private secretary, Just who is Mr. Pilling trying to hoodwink cause the House committees who now Mr. J. G. Pllling, who wrote: "In the Gov­ with statements like that? It was one of the have jurisdiction over our internal secu­ ernments' view, no Government could be so main arguments by the British Government rity and intelligence agencies have sure that no member of its security force at Strasbourg that the kind of 111 treatment yielded to the clamor of the anti-intel­ will ever depart from the strict rules laid meted out to the Hooded Men had since ligence lobbies and sensationalist press. down for the treatment of prisoners in cus­ ceased, and one which weighed heavily with the court. Our Federal intelligence agencies lack tody so as to make such claim with cer­ legislative mandates to take action, tainty." Of course no Government can guarantee Mr. P1lling was replying to a ::.-equest from that members of its police or armed forces while our enemies are redoubling their the Irish Civil Rights Association to Mr. Roy wlll never lll-treat suspects during inter­ efforts to demoralize and destroy the re­ Mason, that he hold the official investiga­ rogation. But they can guarantee that this maining U.S. intelligence operations. tion into the Amnesty brutality report al­ will not be done as a matter of pollcy, and CIA defector Philip Agee, who could have legations in public. that guarantee was given by Britain at Stras­ taught the notorious Kim Philby lessons Mr. Pilling told the Association's chairman, bourg, even though there was strong evidence to the contrary during the months of the in treachery, joined by a handful of U.S. Mr. Jim Curran: "I believe that it is im­ radicals, has launched a new attack on portant to remember that a public inquiry hearings themselves. could not be the forum for dealing with the Is the British Government now sliding the CIA's covert capabilities. possibly criminal offences which are implied back to a situation where it w111 become of­ The parameters of the new attack on by allegations of assault on prisoners incus­ ficial pollcy to 111-treat prisoners? Is White­ the CIA and Western intelligence agen­ tody. hall trying to justify what has been hap­ cies by turncoat Agee and company from "It would, in fact, amount to a prolonged pening in the interrogation centre in Cas­ Cuba is reported in detail in the latest series of public trials without the safeguards tlereagh, embarrassed as they are about the issue of the Information Digest, a news­ which attach to proper criminal procedures, findings of the Amnesty investigators? letter on terrorist, political, and social and as a result of it, there would be virtually It is bad enough that people in Belfast or no possibility of mounting prosecutions wherever, either Loyalist or Republican, movements edited and published by John where a case might seem to exist. These dis­ suspected of being involved in terrorism, can Rees. I commend this article to the im­ advantages do not apply to the procedure expect to be subjected to lll-treatment with­ mediate attention of my colleagues. The proposed by the Government." out the British Government trying to escape article demonstrates the nature of the Mr. Curran, in view of this official refusal, its responsibiUties in the matter. The British attack on the U.S. intelligence commu­ is now pressing the Taolseach, Mr. Lynch, to Attorney General, Mr. Sam Silkin, was nity, namely, that the attack is backed raise the matter at the United Nations and clearly embarrassed by having to defend the by the facilities of our Marxist totali­ with the Council of Europe, and he is also British case at Strasbourg. He should now be tarian enemies; and will again, as Agee asking Opposition leaders Mr. Frank Cluskey asked to clarify his Government's attitude on and Dr. Garrett FitzGerald, to support Mr. has done before, attempt to endanger the this matter at once. lives or personal safety of our intelligence Lynch in these alms. · Another matter for justifiable anger came An angry Mr. Frank Maguire, the M.P. for to light in the House· of Commons yester­ officers by the disclosure of classified in­ Fermanagh/South Tyrone described the rev­ day when the British Defense Minister, Mr. formation. Only passage of H.R. 8718, elation as "scandalous". Fred Mulley, revealed that the soldiers, be­ which provides for the personal safety of He declared that he w111 write to the Brit­ lieved to be members of the S.A.S., who were those persons engaged in furthering the ish Premier, Mr. Callag"tlan ca111ng on him involved in the killing of young John Boyle foreign intelligence operations of the to refute what Mr. Pilling had said in his letter. at Dunloy, Co. Antrim, recently are still United States, and the restoration of the walking the streets, armed with their House Committee on Internal Security "It strikes me that the English are living Armalites presumably. up to their reputation of being like bad can provide the legislation needed by our children who have been caught doing some­ Mr. Mulley told the SDLP leader, Mr. Ger­ intelligence community to cope with the thing wrong and who after promising not ry Fitt that the soldiers would stay on duty newest sabotage tactics directed toward to be bad, go out and break a window," he until it was established that there was a case our Nation. I urge you to join in cospon­ said. to answer, to which Mr. Fitt quite rightly re­ plied that if there was not a case to answer soring House Resolution 48 to restore He added that the fact that the British the Internal Security Committee and Government had not given an undertaken to concerning the shooting of John Boyle, he the Human Rights Court that ill-treatment did not know what else it might be. H.R. 8718 to provide protection to the of any kind would not happen again during The RUC have quite clearly exonerated the men and ·women who serve as our front­ interrogation procedures, had come as a Boyle family from all suspicion of involve­ line eyes and ears in the protracted war shock to him. ment in terrorism and it has been established with the Communists. August 1, 1978 EXTENSIONS OF REMARKS 23799 [From the Information Digest, July 28, 1978] "Two of our group, Phil Agee and Lou Wolf, operating attorney," he became editor of AGEE'S COVERT ACTION have edited and prepared a new book, Dirty the Military Law Reporter, in Washington, Work, just published by Lyle Stuart, Inc. Taking advantage of the opportunity for D.C., and joined the CounterSpy/OC-5 ad­ This book describes in detail how to expose visory board. making foreign contacts presented by the CIA personnel, includes dozens of articles 11th World Festival of Youth and Students In 1974 and 1975, Schaap and other NLG from many countries which have done members affiliated with the CCR-Peter now being held in Havana, a small group of just that, and presents, in Appendix form, American leftists including members of the Weiss, William Kunstler, Marge Ratner­ detailed biographies of more than 700 un­ and with former U.S. Attorney General National Lawyers Guild (NLG) and CIA de­ dercover CIA and NSA personnel lurking in fectors led by Philip Agee have announced Ramsey Clark, attempted to join the de­ embassies and military installations in vir­ fense team for members of the terrorist Red the formation of a new counter-intelligence tually every country on earth." operation, Counter-Watch (CW). Army Fraction (RAF) or Baader-Meinhof The leading role in Counter-Watch has gang; but were denied permission by the The July 28, 1978, announcement of the been taken by William Herman Schaap, 38, formation of Counter-Watch was made at a West German authorities. Schaap and Peter a graduate of the University of Chicago Law · Weiss, chairman of the board of the Insti­ Havana Libre Hotel news conference by School whose activities against the U.S. in­ Washington, D.C., NLG attorney William H. tute for Policy Studies (IPS), remained in­ telligence community cover a 17-year period. volved in the RAF support movement. Schaap who said that the new group would Most recently he was a member of the Ad­ develop a worldwide network of agents that Schaap went to Hamburg in February 1977, visory Board of CounterSpy's parent Orga­ to attend the trial of RAF member and law­ will expose CIA personnel and methods of nizing Committee for a Fifth Estate (OC-5), operation. The CW group will also publish yer Kurt Gronewold until proceedings were perhaps a logical development from his first interrupted by the death of the presiding on a bimonthly basis the Covert Action In­ public political act of record at Cornell Uni­ formation Bulletin (CAIB) [$10/yr.], several judge. Schaap was one of those instrumental versity where as an undergraduate in 1961 in the introduction of resolutions in support hundred copies of which were distributed he signed a petition for the abolition of the this week in Havana and in the U.S., in of 'the RAF lawyers at the spring NLG Na­ House Committee on Un-Amerlcan Activi­ tional Executive Board meeting in Wash­ Schaap's words, "to people interested in our ties. In the period 1968-1969, Schaap was work." ington, D.C. active with the New York Military and Draft In Cuba, Schaap told a reporter that the Schaap told the well-attended press con­ Law Panel, a joint project of the National ference, "We hope ultimately to establish a CAIB had been very well received and that Lawyers Guild (NLG) and the National the CW group would work with various world-wide network of involved and knowl­ Emergency Civil Liberties Committee edgeable researchers who will have CIA offi­ U.S.-based organizations involved in attack­ (NECLC). ing the CIA and other intel11gence agencies. cers under close scrutiny. Their [the re­ As a member of the former law firm of searchers) role wlll be to check and double­ Among those he named as "being close to Lubell, Lubell, Fine and Schaap in the late CW" were the American Friends Service check the work that has been done." l£l60s and early 1970s, Bill Schaap was known Members of the CW apparat include Philip Committee (AFSC) in Philadelphia; the as an advisor and close friend of the leader­ Washington, D.C., based Institute for Policy Agee, now a resident of Rome, Italy; Ellen ship of Students for a Democratic Society Ray, 1842 California Street, N.W., Washing­ Studies (:!:PS), the Center for National Se­ ( SDS) and of Mark Rudd, leader of the SDS curl ty Studies ( CNSS) and the Coalition to ton, D.C.; WilHam H. "Bill" Schaap, also of Weatherman faction and eventually of the 1842 California Street, N.W.; Elsie and James Stop Government Spying (CSGS). terrorist Weather Underground Organization Schaap said that IPS was represented in Wilcott; and Louis "Lou" Wolf. (WUO). Schaap's law firm became a center Covert Action Information Bulletin is pub­ Havana by Saul Landau, a veteran Castro­ for support activity for the Black Panther supporter who described his goal in a letter llshed by Covert Action Publications, Inc., a Party (BPP) and SDS Weathermen; and with District of Columbia nonprofit corporation, to a Cuban Communist Party Central Com­ his law partners, Jonathan and David Lubell, mittee member, a letter found in the brief­ from P.O. Box 50272, F Street Station. Wash­ well-known as Communist Party, U.S.A. ington, D.C. 20004 [202/ 296-6766]. The tele­ case of KGB agent Orlando Letelier, as be­ (CPUSA) activists and organizers from their coming the "propagandist" for the "new phone is llsted to Schaap at 1346 Connecti­ Harvard days, helped form Stronghold Con­ cut Avenue, N.W., washington, D.C. 20036. solidated Productions, Inc., which provided American revolution," by NLG attorney According to the CAIB, several of those now Huey Newton and other BPP leaders with Michael Tigar, currently with the presti­ gious Washington law firm headed by Edward associated with Counter-Watch were pre­ fund~. viously involved with the Agee faction of Bennett Williams who had presented the During this period, Schaap worked with Letelier briefcase to carefully selected re­ CounterSpy Magazine, and when Counter­ the New York NLG's Mass Defense Office in Spy split during the summer of 1976, they porters who had no knowledge of Spanish providing on-the-scene legal aid to arrested and whose most recent case of note was his decided that "there is an important and vital demonstrators; at anti-Vietnam and Pan­ role to be played by the sort of exposes for unsuccessful defense of Vietnamese spy ther 21 support demonstrations; represented David Truong; and by IPS fellow Ralph which CounterSpy had become t·amous. * * * Leslie Bacon, a reluctant grand jury wit­ That CounterSpy and its uncovering of CIA Stavins, long active with the NLG in anti­ ness in an investigation of the WUO bomb­ intel11gence campaigns and now heading the personnel and operations around the world ing of the U.S. Capitol; and unsuccessfully were so violently hated by the Agency was represented Robin Palmer, Sharon Krebs IPS Government Accountabillty Project our best endorsement." and other members of the New York Crazies (GAP) designed to encourage the "leaking" In its premier issue [July 1978], the CAIB (an off-campus SDS chapter) when, as the of Government secrets to IPS. It is noted makes the point that a regular feature wlii Piggybank Six, they were charged and con­ that Landau, Stavins and Tigar, whose first be a section "naming names." They write: victed of a bank bombing conspiracy. documented public political activity in the "We do not believe that one can separate 1960s was with the Fair Play for Cuba Com­ the dirty work of the CIA from the people In October 1971, Schaap was a participant mittee, have played prominent roles in the who perform it. The exposure of past opera­ in a "tribunal" attacking the police, mili­ media whitewash of the revelations of the tions is valuable, but it is only half the job. tary and intelligence agencies that was or­ Letelier documents. Schaap also noted that How many times have we all heard the CIA, ganized by the People's Coalition for Peace ·CNSS was represented in Havana and that the FBI and others say, whenever a particu­ and Justice (PCPJ) in Washington, D.C., Damu Smith was present on behalf of the larly nasty covert operation has been ex­ which worked closely with the Soviet-con­ CSGS. posed, 'Oh yes, but we don't do that any trolled World Peace Council (WPC) and the North Vietnamese and Vietcong in attack­ The CW press conference was also used to more.' We believe that they do, and that the plug Philip Agee's new anti-CIA book, Dirty same people are often involved. ing U.S. assistance to South Vietnam. He followed this activity in November 1971, by Work: The CIA in Europe [Lyle Stuart: New "As a service to our readers, and to pro­ York, $24.95), which, according to its author gress! ve people around the world, we will con­ sitting in at a meeting of May Day Tribe and PCPJ activists planning the disruption of speaking in an appearance on Havana televi­ tinue to expose high-ranking CIA officials sion in Spanish on July 25, "is more im­ whenever and wherever we find them. This the Republican National Convention in San Diego. portant than the first book I wrote." [Inside column, we hope, will usually be longer. In the Company: CIA Diary, Penguin: London, preparing the premier issue, we have been In the fall of 1972, Schaap became a staff 1975]. unable to conduct much of our regular re­ attorney in Okinawa at the NLG's Southeast search, and have one item for our readers." Asia Military Law Project office where he re­ In response to a question as to why he was The CW "scoop" is identification of the mained through 1973. Schaap was one of attending the 11th World Youth Festival, alleged new CIA station chief in Jamaica, seven U.S. NLG delegates to a January 18-19, Agee said: Dean J . Almay, Jr., 51, whose career in the 1975, conference in Paris sponsored by the "I have come at the invitation of the Foreign Service includes posts as a political USSR's International Association of Demo­ [festival) organizing committee, the National officer in Indonesia, Malaysia, Philippines and cratic Lawyers (IADL) intended to popular­ Preparatory Committee. First, we have come Spain. In an interview following the Havana ize claims that the Vietcong and North to enjoy the activities of the festival, to visit announcement, Schaap told a newsman that Vietnamese-controlled Provisional Revolu­ Cuba one more time; but above all, to talk their expose had been carried by the Jamai­ tionary Government of South Vietnam with the largest possible number of delegates can newspapers and that the alleged CIA (PRG) was the "legitimate" government of . on the topic of secret intervention, the CIA station chief "was nowhere to be found." that region. During 1975 and 1976, Schaap activities and methods to penetrate, weaken According to Counter-Watch, a "major was on the staff of the Center for Consti­ and overthrow political organizations in all step" in the battle to destroy the CIA's covert tutional Rights (CCR) in New York. Re­ parts of the world. Of course, this is an op­ capabilities has already been taken. maining associated with the CCR ~ a "co- portunity for talking with people from all 23800 EXTENSIONS OF REMARKS August 1, 1978 over the world and, for me, it is a great That comment is patently false propa­ D.C., when she attended a follow-up and opportunity to continue my work of recent ganda. The facts indicate the Agee had be­ planning conference in Ohio on May 21, 1971, years in connection with political education trayed Pawlowski years earlier, and that the as a member of the collective of the under­ so that the people are able to learn about the Communists had allowed Pawlowski to con­ ground newspaper, Quicksilver Times. In tbe methods, or exactly how to identify the CIA tinue his operations so that his entire net­ fall of 1972, as a "legal worker and film· personnel in different countries. In other work of contacts and agents could be rolled maker," Ray accompanied William Schaap to words, I have come to exchange ideas and to up. There have been some press reports that Okinawa as a member of the staff of the hold talks with the delegates who have come more than 100 people believed to have sup­ NLG Southeast Asia Military Law Project. from many countries." plied the West with intelligence have been Ray and Schaap were among the seven NLG Philip Agee, 42, now living in Rome, Italy, arrested. delegates to the January 1975, IADL con­ for 13 years was a CIA officer primarily in­ According to Agee's book, Inside the Com­ ference in support of the Frovisional Revo­ volved with Latin America. Now a self-stated pany: CIA Diary, at the 1968 Olympic Games lutionary Government of South Vietnam. convert to "revolutionary socialism," Agee in Mexico City, Philip Agee as a CIA officer While Schaap became editor of the MUitary defected from the CIA in Mexico City in 1969. was working as a U.S. representative on the Law Reporter [the 1977 NLG Referral Direc­ Since that time he has made a new career of Olympic Organizing Committee with a spe­ tory lists his office as c; o Military Law Re­ exposing CIA operations. It is interesting that cial responsibility in the Soviet operations porter, 1346 Connecticut Ave., NW, No. 610, Agee has exposed not only those operations section and "with a chief interest on sport­ Washington, D.C . 20036 [202/ 296-7590]], and which were known personally to him as a ing and assessment of new access agents." became a member of the CounterSpy Advis­ case officer, but also those that were ongoing The book contains a "shopping list" of intel­ ory Board, Ellen Ray joined the CounterSpy in Greece, Britain, Portugal, southern Africa ligence information Agee was seeking at the staff. In September 1977, she was with Agee and other areas. During the past two years, time. F.rom that list it is difficult to doubt on his Jamaica visit and produced an article he has apparently been able to expose new that Agee had become aware of Pawlowski's on alleged "CIA destabilization" of Jamaica alleged CIA operations in Portugal, Italy and, for the magazine. In February 1977, Ray and work for NATO at that time. Schaap were the two NLG observers at the after a visit to Moscow perhaps for "re­ David A. Phillios, a former CIA officer who search," Jamaica. Hamburg trials of RAF terrorists in West is president of the Association of Former In­ Germany. In relation to Agee's revelations on the telligence Officers (AFIO), had more infor­ U.S. intelligence community in Greece, James and Elsie Wilcott worked for the mative comments in the AFIO newsletter, CIA for nine years in finance and support former CIA Director William Colby charged Periscope: that Agee's work for CounterSpy was re­ activities in Tokyo, Miami and Washington, "Whether Philip Agee is a paid agent of D.C. They left the CIA some years ago and sponsible in part for the assassination of the Cuban Intelligence Service-a surrogate Richard Welch, the CIA station chief in have been active with radical anti-CIA of the Soviet KGB-is almost beside the group~ in denouncing the Agency. Several Athens, in December 1975. point. By definition, his role has been that of During 1976, when residing in England, months ago, James Wilcott told a U.S. House an 'agent of influence' responsive to Cuban of Representatives investigating committee Agee became the subject of a deportation control. He has made five hugger-mugger order under the provisions of Britain's Im­ that he had been told, while working for the expeditions to Havana of which I am aware. CIA, that Lee Harvey Oswald was employed migration Act of 1971. Papers filed by the His declared mission has been to dismantle British Government charged that he: by the CIA. the CIA by identification, exposure and neu­ Louis Wolf is described as "a journalist A. Has maintained regular contacts harm­ tralization of its people abroad • • •. The ful to the security of the United Kingdom who has done intensive research into the with foreign intelligence agents; degree of his effort in this respect • • • has American intelligence community;" and is co-author with Agee of Dirty Work. During B. Has been and continues to be involved been the subject of debate. • • • Agee in disseminating information harmful to the shrugged off the Welch tragedy, and others the past two years, the writer who has re­ security of the United Kingdom; and yet to come, as the breaks of the intelligence ceived considerable publicity as Agee's co­ C. Has aided and counseled others in ob­ game. As late as January 9, (1977] Agee told author has been Steve Weissman, a former taining information for publication which the London Observer that he was being de­ leader of the Berkeley Free Speech Movement could be harmful to the security of the ported because the British government be­ and SDS who became an initial leader of the United Kingdom. lieved him responsible for the death of two North American Congress on Latin America (NACLA), the "intelligence-gathering arm" In his unsuccessful appeals against the de­ British agents in Poland." portation order, Agee had the assistance of That Philip Agee should return to Havana of the U.S. left with close ties to Cuba, of three U.S. lawy·ers who traveled to London in order to launch Counter-Watch and the the Pacific Studies Center (PSC) which car­ Covert Action Information Bulletin is not ries out "anti-imperialist" "power structure to make statements on his behalf. The three research" on U.S. defense and corporate in­ were former U.S. Attorney General Ramsey surprising. His first book, Inside the Com­ Clark, like Schaap a "cooperating attorney" pany, openly gave credit to representatives terests in Asia similar to those NACLA per­ of the Cuban Communist Party and to the forms on Latin America, and was editor of with the CCR; Melvin L. Wulf, former leaal Ramparts magazine. Married to a British director of the American Civil Libertles · resources of the Cuban Government for pro­ viding him with support and material. While subject, thus not deportable, Weissman has Union also associated with the NLG; and been working with the Agee apparat in Eng­ Morton Halperin of the Center for National living in Paris and London, Agee has ad­ mitted being in frequent contact with Cuban land. Security Studies (CNSS), an anti-intelli­ CAIB lists four recommended "worthwhile gence project staffed by IPS and the NLG "diplomats." He said in an interview, and head of the CSGS. ' "Whether they were Cuban intelligence offi­ periodicals" as First Principles, the CNSS cers or not, I don't really care." newsletter; Organizing Notes, the CSGS Agee, of course, denounced the deportation newsletter; the NACLA Report on the Ameri­ order as "political persecution" and de­ Schaap, asked after his Havana news con­ ference whether Agee intended to return to cas, bi-monthly "well-researched reports on manded to be presented with all evidence the politic::tl economy of the Americas, with against him, claiming to have no idea why the U.S., said, "No, he prefers to stay in Rome where he is able to travel wherever he wants." particular attention to the role of U.S. im­ the British Government would consider him perialism;" and State Research, published a threat to their internal security. However, Agee, an American citizen, has a right to return. However, the woman who calls herself from 9 Poland Street, London W1, United in a January 28, 1977, interview in the New Kingdom ($8 U.S.), "Research notes from a :7ork Times, Agee said he thought the order Angela Agee, but is not legally his wife, does not have a right to a U.S. visa. She has ad­ group of counterspies in the U.K., with much had something to do with exposing a West­ information, especially about British intel­ ern spy ring in Poland," which he denied mitted in press interviews to membership in having done. the Revolutionary Communist Party of Bra­ ligence, hard to come by elsewhere." Schaap asserted that the CTA continues to However, there is public evidence to the zil (PCRB) which has been involved in ter­ rorist activities, saying, "There will have to "corrupt or kill public officials, union lead­ contrary. In April 1976, Jerzy Pawlowski, a be an armed struggle. This has happened in ers, students, prcgressive church or civic Polish UNESCO official and member of the every country where there has been a revolu­ leaders or anyone else who stands in the way 1968 Polish Olympic fencing team, was sen­ tion." of the forces represented by the capitalists, tenced to 25 years imprisonment for espio­ Philip Agee in fact could return to the imperialists or the multinational corpora­ nage. According to official accounts in Polish U.S. without fear of prosecution for breaking tions." His statements were followed by an­ newspapers, Pawlowski "had entered into any laws or violating his CIA contract. On nouncements by the Cuban government that collaboration with the intelligence of one of March 18, 1977, after his lawyers, Mel Wulf a special Wcrld Youth Festival activity, a the NATO states in 1964," and had until his and Ramsey Clark, met with then-head of tribunal called "Youth Accuses Jmperlalism," April 1975 arrest provided military informa­ the Justice Department Criminal Division, would be held to judge the CT A and U.S. tion on the Warsaw Pact to the West. Benjamin R. Civiletti, now a Deputy Attorney "imperialism" "for its crimes against human­ The official Polish version concluded with General, who gave them a letter announcing ity." the claim that: that Agee was no longer under investigation In the first CATB edition, .Agee sets forth "During the investigations • • • Pawlowski and would face prosecution only "if addi­ the reasons for his attacks in an article, confessed * * • and disclosed numerous tional evidence came to light that would "Where Myths Lead to Murder," that alccord­ details and circumstances. * • * this fact suggest a violation of Federal law." ing to a footnote, "expresses much of the alone * * * induced the court not to pass the Ellen Ray first came to public attention philosophy of the Covert Action Information supreme sentence." after the Mayday 1971 riots in Washington, Bulletin." He states: August 1, 1978 EXTENSIONS OF REMARKS 23801

"Together, people of many nationalities favorable political and social climate.4 The nomics for Everybody, New York, Amsco and varying political beliefs can cooperate nation's ability to produce depends on its School Publications, Inc., 1976, pp. 292-296, to weaken the CIA and its surrogate intel­ productive resources, such as raw materials, 163- 167, 304- 305. ligence services, striking a blow at political equipment, labor, and management, and its Stone, Marvin, "Putting Youth on repression and economic injustice. The CIA abili'ty to use them. So far we have had no Course," U.S. News and World Report, Feb. can be defeated. The proof can be seen from extreme problem with our resources. Raw 6, 1978, p . 76. Vietnam to Angola, and in all the other materials are kept up through our foreign "U.S. Business: Trends that Shape the countries where liberation movements are trade, equipment reliability has tripled in Future", U.S. News and World Report, Feb. rapidly gaining strength. We can all aid this the past twenty-five years, and labor and 6, 1978, p. 55-56. struggle, together with the struggle for management are more highly skilled because Webster's New International Dictionary, socialism in the United States itself."e of extensive training and education. Tech­ Springfield. Mass., G. C. Merriam Co., 1950, nology, or our ability to use t hese things, has p. 166 .• also increased. Demand, or willingness to ESSAY CONTEST buy, has been stimulated through monetary and fiscal policies and should continue to NUCLEAR POWER STATION increase. Finally, economic growth is more CONSTRUCTION HALTED HON. JAMES G. MARTIN likely to appear where you have a favorable OF NORTH CAROLINA political and social climate. This depends on political stability, the government's concern, HON. EDWARD J. DERWINSKI IN THE HOUSE OF REPRESENTATIVES a motivated work force, a willingness to save, OF ILLINOIS Tuesday, August 1, 1978 and a healthy nation.5 Productivity is a measure of the nation's IN THE HOUSE OF REPRESENTATIVES • Mr. MARTIN. Mr. Speaker, this year, ability to produce goods and services and is Tuesday, August 1, 1978 for the second consecutive year, my of­ expressed in output per man hour.o It has fice sponsored an essay contest for jun­ risen an average of three percent a year and e Mr. DERWINSKI. Mr. Speaker, as a iors and seniors in high schools in North should be double that in twenty-five years.7 result of legal and political complica­ Carolina's Ninth Congressional District. Earlier we discussed that an increase in pro­ tions as well as continued demonstra­ After preselection by officials at pub­ ductivity is important for many reasons and tions, the Seabrook, N.H., nuclear power one of these is to fulfill the "American lic and private high schools, a panel of Dream". Already Americans are living better station faces a construction halt. It so independent judges selected a winner than their parents and grandparents did. In happens that one of my constituents, Mr. and two runners-up from the entries. 1914 an average weekly salary, working fifty Earl Potter, who is an internationally The judges were extremely compli­ hours a week, was ten dollars and ninety-two recognized nuclear engineer, voiced his mentary of the quality of the writing, cents. Today, working less than fourty-one views on this issue in the July 13 Mes­ along with the degree of research and hours a week, it is one hundred and forty senger Press, a suburban newspaper thought which went into the essays. dollars. In 1914 it took sixty-five minutes to chain, headquartered in Midlothian, Ill. The first runner-up in the essay con­ earn a pound of bacon, ten hours and twenty minutes to earn a pair of men's shoes, and The article by Mr. Potter is of course, test is Gingie Boyd, a student at Char­ three and a half years to earn a car. Today it timely. In addition, it is a solid, hard­ lotte Latin School in Mecklenburg takes fifteen minutes to earn a pound of hitting and factual commentary which County. bacon, five hours and twenty minutes to I am pleased to commend to the Mem­ Mr. Speaker and Members of the earn a pair of shoes, and half a year to earn a bers: House of Representatives, I call to your car.8 At this rate, our children, grandchildren, PALOS HILLS TODAY attention the essay of Gingie Boyd and and great-grandchildren are going to be much (By Earl Potter) know you join me in extending congrat­ better off than we are. The success of those mindless people who ulations to this leader o.f the future. The last national asset to be discussed is gathered at the site of the Seabrook Nuclear the most important. This is the nation's peo­ power station in New Hampshire over the 4th THE WEALTH OF A NATION-FOCUSING ON ple, or more importantly, its youth. The THE FUTURE of July, in getting the Nuclear Regulatory youth of today are the leaders of tomorrow. Commission to stop construction of the (By Gingie Boyd) Through school and education, they can be plant, is an appalling victory for the forces The wealth of a nation and how it will trained to help our nation in the best way whose goal is nothing less than the complete affect the nation's future can be determined possible. One of the concrete t hings being transformation of the U.S.A. from the land of by a look at the national assets possessed by done about this is the Career Education In­ liberty to a big-brother socialist egalitarian a country. An asset is defined as anything centive Act, a bill passed by Congress. This state. While the vast majority of those who which is a support, a resource, or a source was brought about when a survey of seven­ showed up to protest nuclear power are prob­ of strength.l Therefore, a national asset is teen-year-olds showed less than fifty percent ably people who sincerely believe that atomic anything that supports the country or is could name more than one skill necessary for 9 power is the wrong way to go, their ignorance used as a source of strength by the country. their chosen job. This will provide the fed­ of the actual truths of the energy problem Some of the national assets that will be dis­ eral government with funds for a system to makes them just as much enemies of our cussed here are economic growth, increase in teach young people what careers are open future prosperity as the true Marxists who productivity, and our nation's most impor­ and what they must know to enter these careers. propagandize and lead them. Their childlike tant resource, its people. faith in solar power as the alternative to Economic growth is the increasing produc­ Hopefully, with all the national assets that nuclear power is touching, but nonetheless is tion of goods and services and can be deter­ have been mentioned, we will have a better tomorrow. proof of their complete ignorance of the mined by the GNP (Gross National Product). physics and economics of the situation. This is the total value of all goods and FOOTNOTES For the immutable facts of solar powe·r are services produced by the economy in a year.2 1 Webster's New International Dictionary these: the amount of power that the sun Over the next year, the economy should (Sprmgfield, Mass., G. C. Merriam Co., 1950), transfers to the surface of the earth in the grow about 4.7 percent.3 Economic growth is p . 166. United States in the most favorable place and important to our country for many reasons. ~ Gerson Antell and Walter Harris, "Eco­ at the most effective time is slightly less than With an increase in goods, more people will nomics for Everybody," (New York, Amsco 500 watts per sq. yard. The maximum demand have what they need. This will result in a School Publications, Inc., 1976) , p. 292. for electricity recorded by Commonwealth rise in the standard of living. If there is J "U.S. Business: Trends that Shape the Edison Company for its service area (the more production, the government can help Future," U.S. News and World Report (Feb. northern quarter of Illinois, roughly) was out the needy. This includes the unem­ 6, 1978). p. 55. approximately 15.000,000,000 watts. This ployed, the aged, the sick, people being dis­ 4 Gerson Antell, "Economics: Institutions means that, assuming 100 percent efficiency criminated against, and people lacking the and Analysis" (New York, Amsco School of conversion on the 21st of June at sidereal skills necessary to obtain a job. We can ful­ Publications, Inc., 1974), p . 302. noon on the clearest of days at the most fill the "American Dream" with more com­ 5 Ibid., p . 304. favorable site in the U.S. (probably some­ modities. This dream is that our children or o Antell and Harris, p. 293. where in the southwest), it would require the next genliration will have it better than 1 Antell, p. 56. some 30,000,000 square yards of solar collec­ we have it: better housing, more leisure s Ibid., p. 56. tors to supply the needs of the C.E. Co. serv­ time, a longer life, etc. The last reason is 9 Marvin Stone, "Putting Youth on ice area! that economic growth can help strengthen Course," U.S. News and World Report (Feb. This is a little under 10 square miles of the free world. We can give aid to the under 6. 1978)' p. 76. collecting surface that would have been privileged countries and hope that they will needed under impossibly perfect conditions follow our example to capitalism instead of BIBLIOGRAPHY to supply just one small area of the nation. communism. Antell, Gerson, Economics: Institutions The equivalent of the entire area between Economic growth depends on three things: and Analysis, New York, Amsco School Pub­ Harlem Ave. and Roberts Road from 79th expanding the ability to produce, a willing­ lications, Inc., 1974, pp. 302-304, 55-59. Street to about 150th Street that would have ness to buy the expanded product, and a Antell, Gerson and Harris, Walter, Eco- had to be covered· solidly with collectors I CXXIV--1497-Pa.rt 18 23802 EXTENSIONS OF REMARKS August 1, 1978

There are no collectors, even of the stm~ nuke movement to win, then they wm be the public information program represents a plest kind, that are available for as little as biggest fools of all.e significant advancement toward achieving $35 per square yard, and the most efficient understanding and cooperation. run to $1,000 per square yard or more. Taking Please accept my commendation for your the lowest figure, the collectors themselves TORRANCE, CALIF. AIRPORT efforts in conducting an aggressive, yet alone would cost a billion dollars and all of friendly, information program which should the additional equipment necessary to con­ LAUDED FOR NOISE MONITORING result in reducing noise and be a significant vert the collected heat to electric power PROGRAM AND ITS AGGRESSIVE, factor in preserving your airport. would cost several billion more. That is only FRIENDLY PUBLIC INFORMATION Keep up the good work. the beginning, however. First of all, the sun PROGRAM Sincerely, only shines half the time, so we must im­ E. J. McKENNEY, mediately double the area on that score Division of Aeronautics .• alone. We must also devise an energy storage HON. GLENN M. ANDERSON system to supply power when the sun is not OF CALIFORNIA shining. This is a tough technological problem, but IN THE HOUSE OF REPRESENTATIVES solvable given enough money, probably on Tuesday, August 1, 1978 FAMILY IMPACT SEMINAR RE­ the order of more than 50 billion dollars for LEASES THOUGHTFUL INTERIM the area under discussion. But this still is e Mr. ANDERSON of California. Mr. not the end of the bad news! The solar in­ Speaker, the problems of aircraft and REPORT tensity of radiation varies with the season airport noise, which we are belatedly ad­ and the location of the system. It is also dressing for the first time in H.R. 8729, adversely affected by cloud cover, rain, and the Noise Reduction Act, are associated HON. ALBERT H. QUIE wind as far as the net energy transfer is con­ solely with air carrier served airports. OF MINNESOTA cerned. Over-riding all of this is the matter But, the same problems are beginning to of efficiency. There are two points where IN THE HOUSE OF REPRESENTATIVES efficiency is crucial. One, the efficiency of the plague general aviation facilities. Tuesday, August 1, 1978 collector in transforming the radiant energy Torrance Airport, in the district I rep­ that strikes it, into usable thermal or elec­ resent, is one such facility. My mail from • Mr. QUIE. Mr. Speaker, I rise to trical power. Two, conversion efficiency of pilots, city officials, homeowners, and call the attention of my colleagues the rest of the system for transforming the other citizens from the surrounding to the interim report recently released by thermal energy into usable electric power, or communities has been constant. As chair­ the Family Impact Seminar of the In­ if the collectors transform the radiant energy man of the Aviation Subcommittee, I ~lso stitute for Educational Leadership at into electricity (only the most costly col­ George Washington University. The lectors can do this), the efficiency of chang­ hear from affected parties from across ing the electricity produced by the collector the country. I'm sure my colleagues are seminar was set up in 1976 to test the to the kind of electricity that can be trans­ hearing the same complaints. administrative, substantive and political mitted to the customer and used by him. Torrance, however, has been fortunate feasibility of developing family impact It is safe to say that even if all of the for the services of its Director of Trans­ statements. technical problems to make it work could be portation, Arthur T. Horkay. He bears The seminar, directed by Sidney John­ solved quickly, the cost of replacing all other son, is composed of 22 leading scholars energy sources that supply electric power to the brunt of problems and complaint Chicago and Northern Illinois will be over from all sides, · including those we send and individuals experienced with fami­ 1,000,000,000,000 dollars (one TRILLION). his way from Washington. lies. They are: Walter Allen, Nancy The total book value of Commonwealth Edi­ All too rarely do public officials in such Amidei, Mary Jo Bane, Terrel Bell, Urie son co. fac111ties is given as somewhere around sensitive posts receive kind words for the Bronfenbrenner, Wilbur Cohen, Beverly 6Y:z blllion dollars, roughly only seven tenths Crabtree, William Daniel, Jr., John of one percent of what the replacement cost jobs they do. Therefore, the following Demos, Patricia Fleming, Nicholas with solar energy would be! It is a certainty letter from Mr. E. J. McKenney of the Hobbs, Sidney Johnson, Jerome Kagan, that maintenance would be muoh higher for California Business and Transportation Sheila Kamerman, Rosabeth Moss Kan­ a solar system than for the present conven­ Agency should not escape notice. It calls ter, Luis Laosa, Robert Leik, Salvador tional sources of electric power, but the attention to an increasingly important exact factor of difference remains to be part of the airport noise problem. Mr. Minuchin, Robert Mnookin, Martha determined. Horkay would be the first to say that Phillips, Chester Pierce, and Isabel Saw­ When one reduces the foregoing figures to this is only the beginning of many ac­ hill. what it would mean to the users of electric tions which must be taken, but a very I believe the interim report is a power to use sunlight instead of the atom for thoughtful, balanced review of the po­ their needs, the answer is simple-beaucoups important one. bucks! Electricity now being generated by the CALIFORNIA BUSINESS AND tential benefits of analyzing public existing nuclear power plants is the cheapest TRANSPORTATION AGENCY, policies in terms of their effects on Amer­ electricity currently available anywhere on DIVISION OF AERONAUTICS, ican families. It also recognizes the costs the earth. And this despite all of the eco­ Sacramento, Calif., July 5, 1978. of efforts that this might involve and nomic handicaps heaped upon it by the ARTHUR T. HORKAY, warns against overpromising. "crazies" for plant security and the environ­ Director, Department of Transportation, Mr. Speaker, I commend this report to mentalists in their holy quest to save the Torrance, Calif. minnows and the clams from imaginary DEAR MR. HORKAY: We have, for some time, my colleagues and others who share my "thermal pollution." When you consider that been aware of the sensitivity of the aircraft desire to make public policies more sensi­ today's money costs alone on 1 tr11lion dol­ noise issue at the Torrance Airport. Members tive and responsive to the needs and as­ lars would be a hundred billion dollars a of my staff and I have been involved in pirations of American families. I include year, whereas the total amount spent by all meetings with your airport management the section entitled "Preliminary Find­ customers for Edison power during 1975 was staff, homeowners groups and members of ings" and the preface and title pages at only 1.7 billion dollars, you begin to get a the State Legislature concerning this issue. the end of my remarks. glimmer of what is wrong with the dream One of the more effective tools you have INTERIM REPORT OF THE FAMILY IMPACT of solar power! developed is your Aircraft Noise Abatement SEMINAR, APRIL 1978 How does a minimum rate increase of 588 Newsletter. It is an excellent vehicle for percent grab you? Well that, at the very least, getting the necessary information into the (A program of the George Washington Uni­ is what could be expected if ever the libs who hands of the flying public and concerned versity's Institute for Educational Lead­ are out to scuttle the present power industry residents. I am most impressed by the posi­ ership) as well as the free economy in general have tive and helpful attitude which the news­ PREFACE their way. Nuclear power is our only short­ letter projects. It inspires a willingness to The Family Impact Seminar is an inde­ term hope for holding down the cost of elec­ cooperate. This spirit of cooperation is more pendently-financed, three-year project based tricity. The nuclear power generating indus­ important to the reduction of noise near at the Institute for Educational Leadership try has the best safety record of any manu­ general aviation airports than any other of George Washington University. Our pur­ facturing industry in this country-not one single action. pose is to review-carefully and in depth­ single person has died as a result of nuclear· The noise monitoring program and the the substantive, administrative and poUtical radiation due to an electric power unit in knowledge gained from the "get acquainted" feasibility of developing a process for assess­ the 18 ye9.rs that the industry has been op­ t ours which you have established should ing the impact of public policies on fam111es. erating, yet a coterie of fools leads the fight result in pilots being able to adjust their We are cautiously developing and testing a against it! flight procedures with respect t o noise reduc­ " tool"- which might be called a family im­ If the American public allows the anti- tion and at t he same t ime fly safely. Your pact statement-to encourage government to August 1, 1978 EXTENSIONS OF REMARKS 23803 be more aware of and sensitive to what it individuals and organizations who have explored in a variety of settings and on a does to and for fam111es. asked us how we are approaching family im­ broad range of policies. This analysis has the The Seminar is composed of twenty-two pact analysis. potential to bring important new perspec­ leading scholars and policy makers with ex­ Chapter III is a description of our current tives to policy making and policy analysis. pertise in family research and public policies activities and plans for developing pilot Asking the question "what are the effects of affecting fam111es. They come together with family impact statements on government as this policy on fammes?" can potentially con­ our staff in ongoing seminars and work groups employer and foster care. The appendix in­ tribute to an understanding of some of the to help guide and strengthen our work. By cludes a bibliography of books and articles, reasons fam111es experience problexns and op­ bringing together scholars and policy makers a list of family study centers which have a portunities, and contribute to suggestions for to help in this effort, the Seminar deliber­ special focus on public policies and fam111es, making public policies more responsive and ately stands mid-way between the often sepa­ and a list of individuals in state or local sensitive to family needs. rate worlds of academe and policy. It specifi­ government who are interested in or experi­ 5. Family impact analysis is a new concept cally seeks to develop findings and recom­ menting with the family impact idea. While involving complex and largely unexplored mendations which are considered relevant, none of these lists is complete, they do con­ questions. There is little or no existing meth­ important and understandable to individuals tain many of the relevant sources and refer­ odology for family impact analysis, and few and organizations operating in both these ences for information concerning family im­ guidelines for the development of one. While contexts. pact analysis. the process of family impact analysis is be­ Our focus on governmental actions reflects In the months ahead, the Seminar will be ing tested at a growing number of universi­ my belief that public policies-which seek primarily working on three specific pilot ties and research organizations, this type of to represent the interests of all Americans, family impact studies in the areas of govern­ analysis is still in its formative stages. and which are financed by funds collected by ment as employer, foster care and teenage There are many reasons why public policies all taxpayers-should be especially sensitive pregnancy. In the course of these studies we have not been examined in terms of their and responsive to American families. This will be attempting to develop ways of trans­ impact on families Three of the more im­ focus does not mean, however, that all or lating the broad concepts and comprehensive portant reasons appear to be the following: even most of the important events or framework discussed in this report into some First, our system o~ democratic govern­ policies which influence famlUes result from specific tools to assess family impact-pos­ ment is based primarily on the recognition governmental actions. Technological changes 'sibly checklists-which could serve as a of the rights and responsib111ties of individ­ such as the advent of television, or ideolog­ guide for policy makers, local and commu­ uals. our constitution for example, does not ical changes such as those reflected in the nity groups and family advocates at all mention fam111es Thif; emphasis has led to civil rights movement, can have substantial levels of government. defining social problexns and opportunities and lasting impacts. These and many other we hope this report wm be helpful to and the policies designed to address them in examples demonstrate the nrofound effects individuals and organizations who share our individualistic terxns Largely overlooked that private actions or attitudes can have interest in the ways in which public policies have been the "mediating structures" that on fam111es. affect fam111es generally, and the concept of stand between government and the individ­ Thus we define family impact to include family impact analysis specifically. We would ual among which the family is paramount. private as well as public actions or inactions. very much appreciate and benefit from any we question whether public policies de­ Our choice to limit the focus of our inquiries reactions, suggestions or questions that this signed to respond to the needs of a par­ to public policies reflects our belief that the report might stimulate. ticular family member have too often sought government has a special responsibility to B. PRELIMINARY FINDINGS to deal with that person as an isolated in­ be conscious of its impact on fam111es. The Family Impact Seminar has reached dividual ignoring his or her interrelatedness Since our creation in February 1976 we agreement on a series of what might be with other family members, and the degree have held five seminar meetings, completed called preliminary findings. While all are to which the attitudes and activities of those our orientation to this new and largely un­ subject to further review and modification other family members may enhance or limit explored area, reached some preliminary as our work progresses, the following state­ the effectiveness of the policies being conclusions, and begun preparing pilot fam­ ments reflect some of the key facts and con­ pursued. ily impact statements on two policies: gov­ clusions which shape the direction of our second, there is a tendency to attri'l:>ute ernm~nt as employer and foster care. In work. the problems that families experience to the addition, we will be commissioning a set of 1. Families have been and are currently inadequacies of the families or family mem­ papers to explore from a family perspective experiencing unprecedented changes. These bers. Fam111es have generally been consid­ the programs and problems related to teen­ include drama tic increases over the past 25 ered to be solely responsible for most, if not age pregnancy. years in the proportion of mothers working all, the difficulties they experience. While we believe that our final recommen­ outside the home, in the rates of divorce and This attitude has meant. in part, that dations will be shaped in large measure by remarriage, and in the numter of single there has been little effort to analyze the what we learn preparing these pilot family parent fam111es. The steadily shrinking size effects that public policies, the world of work, impact statements, we want to present at of fam111es coupled with a lengthened period or other institutions have on families. We this time an interim summary of the conclu­ of adult years following active childbearing believe, however, that many problems ex­ sions we have reached as a group, staff papers is also significant as is the introduction of perienced by families are the result of basic we have developed, and plans we have for te!evision into the home and many others. economic and social conditions, that family pilot family impact statements. In addition, These profound and dramatic shifts have functioning must be understood in this "eco­ we are including an appendix of sources major effects on the capacities of families to logical context," and that one determinant which have been especially helpful to us care for their members. of this context is public policy. in our work to date. 2. There is substantial and growing inter­ Third, there is a widespread belief that The first chapter of this report, Interim est in fam111es and the ways in which public families are private units, and that govern­ Conclusions of the Family Impact Seminar, policies affect fam111es among the public, ment does not and should not intervene in reflects the judgment of the Seminar as a policymakers, scholars, professionals, and their private affairs. Fam111es have been con­ whole. Each section of the chapter-work­ public and private organizations at the fed­ sidered to be largely out of bounds for public ing definitions, preliminary findings and eral, state and local levels. policy. As a result, even when public policies values-was discussed in depth at our 3. Unlike some European countries, the have had major effects on families, they are Seminar meeting in October 1977, revised, United States does not have an official familv seldom described or analyzed in terms of and circulated t o Seminar members for policy. There is, however, a wif!e range of their family impact. We believe that many further comment. While each Seminar mem­ public policies and programs which affect.;; public policies have direct effects on families, ber might prepare some portions differently fam111es. Our preliminary reviews reveal and that efforts should be made to deter­ if he or she were writing it independently, t hat: mine and make known these effects so that this chapter represents the interim conclu­ -at least 268 programs (as list ed in tbe the public and its elected representatives can sions of both Seminar members and staff. Catalog of Fed.eral Domestic Assistance) debate and change those policies if they Of course, like any interim conclusions, provide direct financial a"sistance or services desire. these will be the subiect of further review, to individuals and families and have 6. Much of the data necessary to describe debate and refinement throughout the fu­ potential im!)act on families. and assess the impact of policies on families ture work of the Seminar. -countless other fede,.al. policies have sub­ are not available or easily accessible. For The remaining chapters and the appendix stantial impact on families. includin ~ tax example, relevant family data are scattered are primarily st aff produ cts. Chapter II de­ rolicies, court decisions, government employ­ among a variety of federal agencies, compar­ scribes our best thinking about our Ecologi­ ment practices, general re, enue sharing, able definitions are seldom used in the col­ cal Perspective, Evolving Framework for Fam­ T'olicies of regulatory agencies, and macro­ lection or analysis of these data, and most ily Impact Analysis and an Approach to Data. economic policies. importantly, these data are seldom analyzed While we received some very helpful reac­ -these policies and programs can and do with the family unit as a prime tions to t hese working papers from several affect families at all economic levels, not consideration. Seminar members, t hey do not represent just poor fam111es . Assessment of family impact may require conclusions of t he Seminar as a whole. We 4. The process of assessin g t he ways in information about families, communities, in­ are sharing them as st aff working papers be­ which public policies affect families-which stitutions and programs which has not yet cause we believe they might be helpful to we call family impact analysis--should be been collected and analyzed. For example, 23804 EXTENSIONS OF REMARKS August 1, 1978 data 1s lacking on the number of children in BALANCE(S) OF POWER, BOOK III message left with the Norwegian people was foster care and the length of time in such B

because it goes over the heads of the smaller specifically addressed in the course of the 1o Captain Gerald E. Synhorst, "Soviet Stra­ powers, diminishing the protection, and ex­ conference itself, the review conference on tegic Interest in the Maritime Arctic," United ercise of sovereignty, which a nation such as implementation scheduled for June 1977 is States Naval Institute Proceedings, May 1973, Norway has a right to expect as a member of a forum where concerns over mutual re­ p. 94. the NATO security arrangement. It is im­ straint in this sensitive region would be an u Jnternational Herald Tribune, "Russians practical because there is an inherent con­ appropriate agenda item. Keeping Missile Subs Beyond US Tracking filet between a situation in which conces­ Beyond the multilateral and superpower is­ Range," April 29, 1975. sionary compensation might be sought, such sues, there remain the U.S.-Norwegian issues 12 Anders C. Sjaa.stad and John Kristen as in Angola, and Soviet commitment to the described earlier, which either contribute to, Skogan, "The Strategic Environment of the higher principle of support for the idealog­ or derive from, the Nordic imbalance, and North Atlantic: Perspectives of the Littoral ical confiict. which suggest the need for closer bilateral States,'' Paper presented at a conference on In Mr. Brezhnev's words at the February consultations. In such a dialogue, the United "New Strategic Factors in the North Atlan­ 1976 25th Soviet Communist Party Congress, States faces two major challenges. First, tic," Keykjavik, October 1975, p. 13. "Some bourgeois leaders affect surprise and there is the challenge to offer its NATO ally 1a British Admiral of the Fleet, Sir Peter raise a howl over the solidarity of Soviet a convincing and reassuring offset to the in­ Hill-Norton, Chairman of the NATO Military Communists ... with the struggles of other fluential presence of Soviet power on Nor­ Committee, reiterated these concerns at the peoples for freedom and progress. This is way's doorstep; second is the challenge December 1975 meeting of the NATO defense either outright naiveness or more likely a shared by Norway and the United States to ministers in Brussels. He cited specifically deliberate befuddling of minds." alter the unfavorable U.S. image which the build-up of the Northern Fleet and the The other choice lies in eschewing com­ serves as a catalyst for so much of the anti­ priority the USSR has placed in interdicting pensation in less vital, or non-vital arenas U.S./NATO, if not pro-Soviet, sentiment in supply lines between North America. and of competition and insisting on mutual ex­ Norway. This, in the end, may prove to be Europe.e ercise of restraint in those regions where the toughest task. But progress must be both superpowers can recognize the vital in­ made in this crucial bilateral area before one terest of the other, i.e., the entirety of NATO can hope for any broader adjusting mechan­ BORN-AGAIN BUDGET BALANCERS and the Warsaw Pact. The latter choice ap­ isms of the Nordic Balance to have a last­ pears to be the more workable for the North­ ing effect. ern Cap situation (as well as for NATO's NOTES HON. JACK F. KEMP southern flanks) . It need not require any 1 Definition of the Northern Cap is that dismantling of bases, or uprooting of missiles. used by Nils Orvik in his Occasional Paper OF NEW YORK What it does require is agreement that of the Center for International Affairs, Har­ IN THE HOUSE OF REPRESENTATIVES mutual restraint is the underlying principle vard University, entitled, Europe's Northern Tuesday, August 1, 1978 of conduct for this sensitive part of the Cap and the Soviet Union, 1963, p. 8. In this world, followed by specific guidelines to definition, the Cap comprises those parts of • Mr. KEMP. Mr. Speaker, an analysis which the superpowers and other interested Norway, Sweden, Finland, and the Soviet of the opposition to the Kemp-Roth Tax parties could subscribe, and against which Union north of the 66• parallel, extending Rate Reduction Act shows several ob­ charges of breach of restraint could be from the Norwegian Sea on the west to the jections. There are answers, convincing referred. White Sea on the east. ones, for each of those objections. Those For some time, the military part of the At~ z The threat of reversing the "base and lantic Alliance has voiced a realistic appre­ ban" policy was used by Norway to induce answers will be articulated in a series of ciation of the situation in the North.13 But KruS'hdhev to back down when he demanded floor remarks, as we approach the day the shifting of the Nordic Balance is basically defense consultations with Finland in 1961 on which the legislation will be consid­ a political issue and needs, in particular, to over West German military resurgence. How ered in the full House. be recognized and a~sessed in NATO's po~ much, if any, this weighed in the ultimate But one of the more frequently litical circles. And because the Northern Soviet backdown is not clear. With disuse Cap situation is so intertwined with super­ over the intervening years, such threats espoused objections relates to the com­ power politics, the Al11ance w111 doubtless become less and less credible. bined question of whether tax rate re­ look for the U.S. lead in making such an 3 Mark Arnol-Foster in the Manchester ductions produce deficits, their size, and assessment. Guardian of November 2, 1975, also cites the inflationary consequences of such An initial step would appear to be an ap~ these constricted gateways in discussing deficits. The articulation of this objec- praisal by the U.S. national security appara­ Soviet enlargement of the two hundred mile . tion shows us more of what those who tus of the northern flank sLtuation in its canal between the Baltic and White Seas: entirety. This would include other recent raise it do not know about behavior and "Main advantage of the canal . . . will be economics, than it shows us of what they developmentc; in addition to the Kola Pe~ to eliminate the need for long voyages under ninsula build-up-North Sea oil for ex­ NATO surveillance between the Navy's main know. ample, with its economic, political and secu~ operational base at Murmansk and its main That articulation shows us that they rity implications; the U.S. position on min~ repair facility in the Leningrad area. have not seen the fallacies used in con­ eral exploration and other privileges en­ Hitherto, the main part of the Soviet striking structing the formulae in the econometric joyed by signatories of the 1925 Svalbard force, 106 destroyers and 109 frigates, has models on which they have relied for Treaty; and the multilateral issues sur~ only been able to make this voyage by cir­ rounding the current bilateral discussions cumnavigating Norway, with its NATO track­ their information and conclusions. They over delineation of the continental shelf be~ ing stations, and passing through t he Katte­ should tum to the RECORD of July 26, tween Norway and the Soviet Union. gat and the oresund in full view of the Danish pages 22940-22943, to start straighten­ One would hope that from such an ap~ coast guard." Also, " . .. the new canal could ing themselves out on this matter. praisal would come a commitment from the make it possible to deploy the very large It shows us that they have not studied United States to consult with its NATO number of surface ships now virtually im­ sufficiently the statistics of the Treasury partners and seek a set of guidelines de~ prisoned in the Baltic, to the open sea in the signed to restore and regulate the balance north." Department on the relationship between in the North. An important aspect of such 4 A key factor in Soviet unwillingness to tax rates and tax revenues. They should an initiative would be the mechanisms return four Japanese Kurne Islands north­ t-..:rn to the statistics on the percent of through which these concerns would be east of Hokkaido may be the need to reduce total Federal revenue brought in by the communicated to the Soviet Union and the as much as possible the vulnerability of the capital gains tax before 1968 and after Warsaw Pact. A possible vehicle for com­ Pacific Fleet's egress through the Soya Strait. to start their education in that regard. munication is the off-and-on Norwegian­ r. Nils Orvik. Op. cit. Or, they can turn to the RECORD of July 6 Nils Orvik, "Scandinavian Security in USSR dialogue already referred to over the 12, pages 20596-20599. continental shelf. In this respect, the in­ Transition: The Two Dimensional Threat," terest and low-key support for Norway from Orbis, Fall 1972, p. 736. It shows us that they have not learned the other NATO members would appear 1 Political activity in the armed forces, the relationship between tax rates and useful. Another key opening is the super­ rather than unionization, appears to be the savings, or savings and investment, or power consultative process. Supported by. a current issue. A bill has been introduced in investment and economic growth, in­ NATO consensus, the United States could the Starting to permit partisan political ac­ cluding jobs creation and reduced infla­ raise with the Soviets its concerns over the tivity within military units. The Starting has tion rates. This is crucial. For starters Nordic Balance, particularly in the con­ recently returned the bill to the Ministry text of the Nixon-Brezhnev pledge of 1972 of Defense, requesting its review and pro­ on this one, they can tum to the study which barred efforts to obtain unilateral posal of alternate solutions. of Michael J. Boskin of Stanford Univer­ advantages at the expense of each other. s Orvlk, Op. cit., "Scandinavian Security in sity in the April issue of the Journal of Political Economy, one of the two most Still another possible mechanism is the Trans!tion. · ~ follow-on process established at the Confer­ 9 Egil Ulstein, "Nordic Security," Adelphi widely respected economics journals-in ence on Security and Cooperation in Europe. Paper No. 81, London, International Jnstitute and out of the profession-in the coun­ While security issues in the North were not for Strategic Studies, November 1971, p. 16. try. Or they can tum to the RECORD of August 1, 1978 EXTENSIONS OF REMARKS 23807 April 17, pages 10378-10379, for an ex- Although "every member of Congress de­ Service on the "Food and Drug Admin­ planation, in laymen's terms, of that sires relief for the American taxpayer," in­ istration's Proposal to Restrict the Use study, toned Sen. Bellmon, "we are equally desir- of Selected Antibiotics at Subtherapeutic It shows us that they have not thought ous of balancing the budget and bringing Levels in Animal Feeds." It offers a look through the question of the shape of the our deficit under control." Down to defeat went the Roth amendment. Sen. Hayakawa at the long-range consequences of FDA's tax rate reduction or the nature of the then offered an amendment to cut taxes and recent proposals. deficits. As all tax cuts are not created spending by $11.4 billion. Objections were FOOD AND DRUG ADMINISTRATION PROPOSAL TO equal, neither are deficits produced made to his menu of spending cuts. Down RESTRICT THE USE OF SELECTED ANTIBIOTICS equal. They should turn to pages 21034- the Hayakawa amendment. Sen. Hatch then AT SUBTHERAPEUTIC LEVELS IN ANIMAL F'EEDS 21035 of the RECORD of July 14. offered an $11.4 billion tax cut to be paid for (Prepared by Clark R. Burbee, Robert Lena- But that is not my primary point this by holding the spending increase to 9.4 per­ han, and George Allen, Economic Research afternoon, and I do not want that point cent. This required only a 2¥2 percent cut Service, U.S. Department of Agriculture) in the proposed budget and surely, said to be lost. As someone who has been con- Hatch as he pleaded for the taxpayer, "there INTRODUCTION cerned about deficits, and the way in is 2¥2 percent waste in every spending pro­ The Food and Drug Administration an­ which deficits financed by increasing the gram." Not so, said Bellmon. Down the nounced on August 29, 1977, a proposal to money supply contribute to inflation, I Hatch amendment. prohibit the routine addition of the anti­ cannot tell you how pleased I am to see (Shortly after, the Inspector General of biotic penicillin to animal feeds. This briefing those Members, who have never or sel- HEW reported that HEW alone had "lost" $7 paper attempts to place in perspective the dam been concerned with balancing billion in waste, fraud and mismanagement­ complex and extremely controversial issue budgets or have acknowledged the rela- over 4 percent of its budget and 61 percent of restricting the practice of using certain of the proposed tax cut.) antibiotics at subtherapeutic levels in an­ tionship between deficits and inflation, we get the uneasy feeling from all this imal feeds. now come forward as great budget bal- that some people become fiscally responsible This paper covers the history and use of ancers in their attacks on Kemp-Roth. only when it is time to cut taxes. we wish antibiotics in animal agriculture, the public Members who seldom, if ever, have voted we could believe that the big spenders, who health problems that might emerge from for amendments to reduce spending and are increasing government spending at a their continued use, antibiotic policy devel­ thereby the deficit. Members who have faster clip than the growth in GNP, have been opments, current FDA proposals, economic never before seen deficits as potentially born again. Such a mass conversion to the research on restricting antibiotic use, other ranks of the fiscally sane by so many sin- pending actions, and recommendations !or d angerous to the economy. Members who ners at once wou!.d be nothing short of mi­ future action. have never before linked deficits with raculous. Somehow, though, it doesn't ring This paper was prepared by the Economic inflation; as a matter of fact, they have true that big spenders are jumping on a tis­ Research Service with assistance of the Agri­ more often said that deficits were es- cal responsibility bandwagon. The Republi­ cultural Research Service, Cooperative State sential to get the economy moving again can efforts to make fiscal soundness a po­ Research Service, Animal and Plant Health and to create jobs. These have now come litical issue have been unsuccessful for so Inspection Service, Food Safety and Qual­ forward to oppose budget deficits to sup- long that a balanced budget is like a legend ity Service, and the FDA Bureau of Veteri­ port the balanced budget to link deficits - from the past. During a period of time cor- nary Medicine. . : . • responding to the median age of the popula- SUBTHERAPEUTIC USE OF ANTIBIOTICS IN ANIMAL With InflatiOn. tion. Congress has produced $452.4 bUlion FEEDS I hope that this new spirit will pervade in deficits and $17.2 b1llion in surpluses. Use of antibiotics to improve growth and their conduct and votes for the rest of There can only be a few politicians in wash­ feed efficiency in animals originated in 1949; their tenures in this House, that it will ington who can remember the days of the . commercialization began in 1950. Since then, not be limited to the duration of the de- balanced budget. The several generations who 15 antibiotics and other antibacterials, either bate on this one bill, the Kemp-Roth have been born into the deficit state must singly or in various combinations, have been bill. simply take them for granted. After all, they approved by FDA !or use in animal feeds as R Ie f d · th" Ch b d are nothing new. U s C! . ecorum In . IS . am er. 0 So why are deficits suddenly alarming to well as for clinical treatment of animals. not prohibit me from mferrmg motive big spenders? We believe the answer lies in The U.S. Tariff Commission estimated 1973 production of all antibiotics for animal feed on the part of another Member's actions. the momentum of the Kemp-Roth-Steiger and other nonmedical uses in the United That stands to sense, in that no one tax rate reductions. Just as conservatives States at 8.2 m1llion pounds compared to 12.6 knows what is inside the head of pointed the deficit finger at the growth in million pounds produced !or medicinal use. another. spending programs, now that there is a dif- Antibiotics are extensively used at sub­ But a very interesting observation on ferent momentum the big spenders are point­ therapeutic levels in feeds for poultry, swine, what may be some motives has appeared ing a deficit finger at the looming tax cuts. beef cattle, sheep, and dairy calves. Research in an edit"orial in yesterday's Wall Street What is at issue is not the deficit itself but "B A . d political power. data clearly indicate that this practice aids J ourna,I orn gain Bu get Ba-1 A tax cut would reduce the size of govern- in the improvement of feed efficiency, in­ ancers." This is an important editorial, ment relative to the private sector. It would creases the rate of weight gain, and prevents for it tells us how much or how little at- be an inroad on the power that has been and controls diseases that would otherwise tention we should pay to the new spirit concentrated in Washington, and the pros­ increase morbidity and mortality in animals. sweeping some Members of this pect of a decline in political clout is not Large-scale confinement rearing of these an­ Chamber. universally cherished. The political careers imals has been facilitated along with all the of many liberals depend on government ac­ economies or size of such operations. Further, The editorial follows: tion replacing private action. Besides, if the improved feed efficiency has reduced the reed [From the Wall Street Journal, July 26, 1978] tax cut proponents are right and the econ­ input per unit of output and has had an im­ omy booms, there would no longer be a slug­ pact upon the demand !or feed grains and BORN AGAIN BUDGET BALANCERS other ingredients. Increased rate of weight With pressure mounting in Congress for a gish economy as one excuse for expanding government. gain has reduced the input requirements !or tax cut, we are suddenly finding a lot of born labor and capital items. again budget balancers. We would not turn away the truly born again, but before we welcome big spenders However, placing an economic value on Treasury Secretary Blumenthal, who the benefits from the subtherapeutic use of earlier this year defended the $60 billion to the ranks of the budget balancers we wm wait to see if their new-found devotion antibiotics is difficult since the practice grew budget deficit, is now busy trying to whip up simultaneously with and complemented im­ inflationary concerns about the Steiger to smaller deficits applies to restraining spending, or just to preventing tax cuts.e provements in management skills and animal amendment by asserting that it would "add genetics, nutrition, and disease treatment. $2 b1llion to the Federal budget deficit." To Estimating the economic benefits of anti­ add $60 b1llion for spending purposes is biotics is further complicated by the lack of helpful to the economy, but to add $2 billion FDA'S PROPOSED RESTRICTIONS ON comparative data on disease control, par­ for a tax cut is inflationary. ANTIBIOTICS ticularly after sustained use. There is a need Similarly in the Congress. The Second for more knowledge about the development Budget Resolution for fiscal year 1978 of resistance and whether there is a need for brought to the floor by Sens. MusKIE and HON. CHARLES ROSE increased dosages to maintain disease control. BELLMON contained a 12.2 percent increase OF NORTH CAROLINA in federal spending. The $64 billion deficit Each of the animal species responds differ­ resulting from this large spending increase IN THE HOUSE OF REPRESENTATIVES ently to the various antibiotics. Specific re­ was defended as a necessary stimulus to the Tuesday, August 1, 1978 sponses of feeding subtherapeutic levels of economy. In the same breath the same Sen­ antibiotics are as follows: ators spoke in fiscally responsible tones • Mr. ROSE. Mr. Speaker, today I offer Cattle: Antibiotics improve feed conversion against Sen. Roth's proposal to amend the a briefing paper by the U.S. Department and increase rate or weight gain by (1) re­ budget to provide an $11.4 billion tax cut. of Agriculture's Economic Research ducing incidence of dlsorderf; in the digestive 23808 EXTENSIONS OF REMARKS August 1, 1978 tract; (2) reducing incidence of liver ab­ sistant strains of organisms in people. But the use of antibiotics at subtherapeutic scesses; (3) aiding in the maintenance of evidence is also lacking. This is considered levels in animal feeds, these benefits must be the animal's general health and controlling to be the least likely means of developing weighed again:>t t he theoretical risks of cre­ of subclinical infections; and (4) controlling drug resistant bacteria. Low-level usage of ating some highly infectious and viable drug the disease anaplasmosis. antibiotics as in correctly formulated ani­ resistant organism in the future that would Swine: Use of antibiotics in swine (1) aids mal feed does not contribute significantly to be very harmful to human and animal in the prevention and control of baby pig legal residue problems. Most of the residue health.e diseases; (2) increases rate of weight gain; problems result from therapeutic antibiotic (3) improves feed efficiency; and (4) im­ abuse or misuse of the antibiotics in formu­ proves reproductive performance. lated feed. Poultry: Low-level feeding of antibiotics Proponents and opponents of the proposal to poultry will (1) increase production in to restrict use of antibiotics in animal feeds CONCERNING THE AMENDMENT ON layers and turkey breeders; (2) increase rate have placed different interpretations on the KOREAN TROOP WITHDRAWAL­ of weight gain in turkey poults and broilers; potential danger of the health hazard from INTERNATIONAL SECURITY AS­ (3) improve feed efficiency; and (4) prevent drug resistant bacteria. Proponents admit SISTANCE ACT onset of diseases associated with intensive that the drug resistant organisms may be rearing. non-infectious or less viable than their non­ Sheep: Antibiotics are most important for resistant predecessors. But they note this HON. WILLIAM F. GOODLING should not be interpreted as meaning that lambs in feedlots to ( 1) improve rate of OF PENNSYLVANIA weight gain, and (2) prevent onset of dis­ by selection pressures or evolution a highly eases associated with confinement rearing. infectious and viable drug resistant orga­ IN THE HOUSE OF REPRESENTATIVES nism will not appear some time in the future. How antibiotics work at subtherapeutic Tuesday, August 1, 1978 levels is not clearly understood. Three ways Number and incidence of reported salmonel- have been most commonly postulated, and losis cases 1966-75 e Mr. GOODLING. Mr. Speaker, the each has varying degrees of support. They are President's plan to withdraw 28,000 U.S. ground troops from South Korea by 1982 ( 1) a metabolic effect, in that the antibiotics Number Cases per directly affect the rate or pattern of the Year of cases 100,000 people is one which has met with increasing metabolic processes in the host animal; (2) a skepticism since its formal announce­ nutrient-sparing effect in which the anti­ ment in March of last year. As military biotics may reduce the dietary requirements 1966 ------16,841 8.60 and political experts have reported on for certain nutrients; and (3) a disease con­ 1967 ------18, 120 9.16 the process by which the decision was trol effect where antibiotics suppress orga­ 1968 ------16,514 8.26 made; the way in which the administra­ nisms causing clinical or subclinical mani­ 1969 ------18,419 9. 12 festations of disease. Although there is ex­ 1970 ------22,096 10.84 tion informed our Asian allies; and the tensive evidence of the nutrition and anti­ 1971 ------21,928 10.63 possible effects withdrawal could have biotic response relationship, these effects are 1972 ------22 , 151 10.64 on peace in Korea; lingering doubts generally considered secondary to the disease­ 1973 ------23,818 11.35 have turned to grave misgivings. It is control effect. 1974 ------21,980 10.40. because of my own misgivings that I am PUBLIC HEALTH PROBLEM 1975 ------22,612 10.61 proposing this amendment, which I hope Controversy on restricting the subthera­ will underscore deep congressional con­ peutic level use of antibiotics arises from Source: Center for Disease Control, HEW. cern over this policy. the potential public health hazard of the Opponents point to the lack of evidence In my brief comments today I should practice. It is important to note that no of a health hazard and in particular refer like to discuss just two of the issues distinction was made in the regula tory proc­ to the incidence of salmonellosis, a disease ess between antibiotics used for human clin­ raised by this amendment--the effect of humans caused by salmonella bacteria our withdrawal policy will have on our ical medicine and use for clinical and/ or that are known to be becoming antibiotic re­ disease prevention in animals. Consequently, sistant as a result of the use of antibiotics in commitment to Asia and the prospects such antibiotics as the penicillins, tetra­ feed. Cases of salmonellosis reported to the for nuclear proliferation. cyclines and streptomycins were approved Center for Disease Control (CDC) in Atlan­ Our interests in the security and in­ for use for humans and animals. ta, Georgia, are indicated in the following dependence of South Korea are cemented It was not observed until 1955 that bac· table. Af; such, they are probably a fraction by the armistice agreement of 1953 and teria could develop a resistance to antibiotics. of the number of actual cases. One estimate the Mutual Defense Treaty with South But this observation was not in connection based on these reported cases put the total with animal feeding of antibiotics. The pas­ number of cases of salmonellosis in the Korea. This commitment extends be­ sage of time and accompanying research on United States at approximately 2 million a yond these formal agreements for it antibiotic resistant organisms provided the year. Many of these go unreported because encompasses the whole of America's information to develop three hypotheses on the symptoms experienced are often attrib­ economic, political, and military ties with how the practice of feeding antibiotics to uted to "the fiu" or an "upset stomach." East Asia. animals could be a health hazard to other Prior to 1966, salmonellosis was not classi­ It is useful to note that trade with animals and to humans. fied as a reportable disease and was grouped First, it is known that certain pathogenic East Asia exceeds that with Western with other in t9stinal illnesses. Since l 9:6, Europe and the margin will probably organisms such as salmonella, existing in the however, it has been specifically reported as gastrointestinal tract of animals, can become :::. separate disease. The number of cases and increase. And these societies stand in resistant to the antibiotic fed to the host incidence of salmonellosis increased between sharp contrast to their Communist animal at subtherapeutic levels and over time 1966 and 1970 and has remained roughly neighbors, for they support pluralistic be passed into the environment and/ or food constant since. The increas~ in the annual ideas and western style institutions. But to humans. Since the organisms are anti­ number of cases between 1966 and 1970 is they confront in their region two biotic resistant, the hypothesis is that should probably due to improved reporting. As the they produce infection in humans or other threatening giants the Soviet Union and reporting network between the State and China-who make no bones about their animals then the same antibiotic would be local health departments and the CDC im­ an ineffective means of treatment. proved, the number of reported cases in­ commitment to remain an influence in The second hypothesis concerns the ability creased. Proponents also note there has been East Asia. The Soviets have not in­ of organisms to transfer antibiotic resistance no change in antibiotic resistance demon­ creased their Pacific fleet because some to other organisms and therefore cause wide• strated in the treatment of human cases. The bureaucrat in Moscow likes boats. spread infection among people and animals same antibiotics have been effective for years. We lay ou::- commitment on the line that cannot be successfully treated with the In cases of human salmonellosis caused same antibiotic. Like the first hypothesis, in South ~orea, with the presence of by raw meat or poultry products, the source the 2d Infantry Division, which proves there is only evidence to offer partial sup­ of contamination is usually from the animal. port. Transmissibility is not being seriously that deterrence and defense are a joint questioned, but there is still a lack of evi­ Unavoidable cross- or direct-contamination United States/South Korean effort. And dence that these new antibiotic-resistant or­ of raw meat or poultry can occur during America's military presence has pre­ slaughter. Salmonella can also be transferred ganisms have in any way contributed to an served the peace in Korea since 1953. The increase in infectious diseases of people or from raw to cooked product via contami­ animals. nated handling equipment of food handlers South K0reans want us to stav, the Jap­ The third hypothesis is that trace amounts a.nd is often the cause of human outbreaks. anese want us to stay, the Filipinos and of antibiotic residue in animal tissue, milk, While there is substantial evidence availa­ the Taiwanese want us to stay-but the and eggs may .lead to the emergence of re- ble to validate the benefits to society from administration wants us to leave. August 1, 1978 EXTENSIONS OF REMARKS 23809 At the root of the administration's Korea and is in direct contradiction to nationality problems, but also the support withdrawal policy lies the concept of any sound and comprehensive nonprolif­ of the existing status quo, all present a great eration policy. I respectfully solicit your danger for the future of Europe and the rest "flexibility." The administration argues of the world. Yugoslavia has gotten to the that as our troop strength in South support for this amendment and the point that any slowing down of democratic Korea de,creases, paradoxically, our "op­ ideas and concerns it embraces.• political reform is a step backwards. Noth­ tions" as to how we might behave during ing threatens the independence and unity an a.ttack increase. These "options" con­ of the country and nothing disorganizes tribute to our "flexibility." Today U.S. her more than the present lack of freedom of troops in South Korea have a "trip wire" MIHAJLO MIHAJLOV BEFORE speech and of the press, which are a pre­ effect, since they represent the leading HELSINKI COMMISSION requisite for other kinds of freedom, and without which all the different nationali­ edge of our awesome military power, ties cannot peacefully coexist. which will necessarily be deployed in the HON. EDWARD J. DERWINSKI Because of the fact that there is complete event of an attack by the North. This OF ILLINOIS party monopoly in all spheres of life in so­ military contingent acts as the most im­ ciety, one cannot be surprised that there portant deterrent to war in Korea-a IN THE HOUSE OF REPRESENTATIVES are so many political prisoners in Yugoslavia. fact which is almost universally ac­ Tuesday, August 1, 1978 Last year Milovan Djilas asserted that per­ cepted. But when we tell the Koreans centage wise, the number is greater than in e Mr. DERWINSKI. Mr. Speaker, re­ the USSR. No one knows the exact number. that we are seeking certain "options" to cently Mr. Mihajlo Mihajlov, the distin­ However one does know for sure that 6 enhance our "flexibility" as the adminis­ guished author and political dissident, months ago there was no amnesty whatso­ tration has done, the South Koreans be­ spoke before the Helsinki Commission ever for political prisoners. Only a selected gin to feel the shifting of the winds. For of the Congress. Mr. Mihajlov also met thirty were pardoned and released, and not they fear that "flexibility" means pos­ informally with other Members of Con­ two hundred and eighteen as stated by the sible abandonment. American press. It is interesting that in this gress in his ongoing efforts to report on case the Yugoslave press did not lie, but the After the administration had made the the true conditions within his country, Western press did. Only thirty political pris­ fundamental decision on withdrawal and Yugoslavia. oners were released, which were the ones discussed only timing with our Asian al­ Appreciating the interest that the about whom the Western press was the lies we heard unequivocal and soothing Members have in the question of human noisiest. The other one hundred and eighty statements about our firm commitment rights, I wish to insert Mr. Mihajlov's had their sentences slightly reduced, for ex­ to South Korea. It is the ".~.oundation statement at this point: ample from ten years to nine and a half. But the American press still writes about of our policy" in Asia the Secretary of STATEMENT BY MIHAJLO MIHAJLOV BEFORE Defense said. But our allies also knew an amnesty resulting in the release of two THE HELSINKI COMMISSION OF THE U.S. hundred and eighteen people! that "flexibility" loomed in their future CONGRESS I will give you examples of prisoners With and so they must wonder if commitment Most honourable ladies and gentlemen, different political orientations: is compatible with "flexibility." Yes, I What came to me as a most unpleasant Davor Aras-a historian, former Secretary think this policy strikes at the very heart surprise was the fact that in the official Con­ of the Historical Institute of the Yugoslav of our commitment to South Korea-for gressional reports on human rights in the Academy of Sciences in Zadar, a man in it cannot be justified on grounds consist­ Communist countries of Europe, from last poor health, was sentenced in 1975 as a "ter­ ent with our pledge to peace and security August, and this May, Yugoslavia was not rorist". His crime: after Tito purged the in Asia. . even mentioned. Thus uninformed people leaders of the Croat Communist League, he, get the impression that in Yugoslavia the Davor Aras, wrote on a wall "Down with ter­ Doubts about our commitment to Asia problem of human rights does not exist. But rorism." For this he was convicted as a "ter­ may cause serious consequences for the even worse than that: people may come to rorist" and sentenced to six and a half years future stability of this region. As Gen. the conclusion that respect for human rights in prison. He is now in the Lepoglava prison. Richard Stilwell, Commander in Chief, is possible in a non-democratic, one party, Nenad Vasic-a lawyer, a Montenegran United Nations Command, from 1973 to communist country. from Sarajevo, was given the highest pos­ 1976, has pointed out; a withdrawal of However all this does not reflect the truth. sible sentence of ten years for so-called "hos­ In Yugoslavia there not only is no freedom tile propaganda." He uttered four critical U.S. ground forces will inevitably lead of assembly, but there also is no freedom of sentences about the situation in Yugoslavia. to a renewed arms race in Korea, as the speech. The Yugoslav press is under total Nenad Vasic is now in Foca prison, in Bosnia. South moves rapidly to insure its deter­ censorship. And worse yet: the Yugoslav Adem Demaci-an Albanian nationalist, rent and war winning capability. Nuclear citizens have less of an opportunity to find the first writer in Yugoslavia to write a novel weapons will probably be a part of their out about the internal affairs of their own in Albanian, served a 3 year term ( 1960- new arsenal, for there is no question of country, than do the citizens of other Eu­ 1963) for "hostile propaganda," that is, for their potential capability in this regard. ropean communist countries. Yugoslavia is critical remarks. In 1964 he was sentenced to And what of Japan? Will they stand de­ the only communist country in the world fifteen years for taking part in the distribu­ whose citizens cannot find out or hear about tion of leaflets but after the fall of the fenseless against the increasingly aggres­ the conditions in their own country, even chief of the Yugoslav Secret Police, Ranko­ sive Soviet presence in the Pacific? How from the West. It is true that unlike other vic, the sentence was reduced to 10 years long will they want to wait before devel­ communist countries one can freely buy which he served in full and was released in oping their own nuclear arsenal and de­ Western newspapers and magazines, but 1974. But by the end of that year he was livery systems. Under the present climate those issues which have any analysis or criti­ re-arrested and in 1975 was again sentenced created by U.S. actions in Korea-if I cism of Yugoslavia are banned. In the West to fifteen years, accused once again in dis­ were they I would answer-"Not long!" there are up to one million Yugoslav workers, tribution of leaflets. Now he is in the harshest but if upon their return to Yugoslavia they prison in Yugoslavia, Stara Gradiska prison, This planned withdrawal from South dare to bring copies of Yugoslavia Emigrant in Croatia. Korea on whatever timetable, is a clear papers, they are sentenced automatically to Vitomir Djilas, a lawyer from Montenegro. and compelling invitation to nuclear many years in prison. For a quarter of a In the spring of last year he was sentenced proliferation in Asia. The Washington century Radio Free Europe does not broad­ to two years in prison for sending a letter Post reported over the weekend that we cast to Yugoslavia, other stations such as 'to the Yugoslav newspaper "Politika" in are removing our tactical nuclear weap­ The Voice of America avoid to touch even which he contended that the rights of man ons from South Korea. That cool and the surface of Yugoslavia's internal condi­ were not being respected in Yugoslavia, and comfortable shadow cast by America's tions. In conclusion: Yugoslavia is the only that one can even be arrested for propagat­ communist country with an underground ing Eurocommunist ideas of pluralism. He nuclear umbrella is beginning to shrink. communist party which competes with the is now in Spuz prison in Montenegro. And when we look around one day to that p:uty in power. In such condition, growing All of the above, except the Adem De­ far away place called Asia we will face separatist tendencies are also understanda­ maci, were defended by the Belgrade lawyer the grim specter of a score of unstable ble. Whenever the democratic West, pursuing Jovan Barovic, who is willing to confirm my and frightened nations armed to the its short term goals, ends up supporting the words with documents. teeth with nuclear bombs. In that dictatorial powers in any country, in the Considering these facts, and the general event-we can blame only ourselves. end it is the totalitarian countries that win. knowledge that there are no less than one And thus, not only the possibility of are­ thousand political prisoners in Yugoslav Mr. Speaker, this withdrawal policy peated loss of the country's independence, prisons among which there are no more than damages our pledge to security and sta­ the threat of internal turmoil, and the col­ ten real terrorists, and the fact that Yugo­ bility in Asia, threatens the peace in lapse of the government because of unsolved slavia, despite being signatory to interns.- 23810 EXTENSIONS OF REMARKS August 1, 1978 tional agreements, does not recognize the results of the 1976 Olympic competitions The Office of the Director of Civilian status of political prisoners and treats them in which 21 shooting medals were award­ Marksmanship J. DAVIS, marksmanship program." Assistant Secretary Why, when such a valuable program 1. That the surplus automatic weapons be (Enforcement and Operations). demilitarized. has been used as a training ground for DAVIS LETTER CONTRARY TO FEDERAL LAW U.S. olympic competitors, and as a means 2. That the M-1 rifles and M- 1 carbines not of preparing this Nation's youth for mili­ be demilitarized but preserved in storage. It is well known that Mr. Davis fosters tary participation, has the Treasury De­ 3. That the quantity of M-1 rifles offered the opinions represented in his March for sale in 1978 be increased to at least 2,600. 22 letter. It is he who issued the March partment set about to destroy the civilian (Emphasis mine.) marksmanship program? 22 proposed gun control regulations for 4. That the requirement t hat applicants the Bureau of Alcohol, Tobacco, and Why, in light of this Chamber's June 7 have established a marksman status in com­ Firearms ATIONS OF MARCH 20 pending further discussions and study on sequence of events is an affront to the JULY 10, 1978. the question of the sale of surplus military Stratton committee, to those of us who DEAR MR. CHAmMAN: After lengthy deli­ weapons; (Emphasis mine.) protested the destruction of the M-ls, berations concerning the disposition of M-1 2. We prefer that the rifles sold be re­ and to the taxpayers themselves, who rifles and M-1 carbines, the Army Staff and stricted to .22 caliber target rifles which are are paying for storage, and receiving the National Board for the Promotion of Rifle appropriate for target practice; Practice (NBPRP), having considered the little benefits from these surplus arms. 3. We prefer that M-1 rifles be available For the Secretary of the Army to order views of t.he DeiJartment of Defense, Depart­ only at ranges operated by the Army where ment of Treasury, Congress, and other in­ they remain in Army custody; the waste of 300,000 usable arms at the terested agencies, have provided recommen­ cost to taxpayers of $600,000 is reprehen­ dations. I have reviewed their recommenda­ 4. As you requested, the inventory of M-1 rifles should be maintained pending the dis­ sible. For that same executive officer to tions and those of the House Armed Services later order that these arms be placed on Investigations Subcommittee and have di­ cussions and study discussed above; rected the following actions (listed in the 5. The marksmanship requirement for "contingency'', (bureaucratic word for sequence of your March 20 recommenda­ purchase should be retained, although we "mothballing") while members of Con­ tions): question, both from a legal and a policy per­ gress and taxpayers are ignored, 1. Surplus automatic weapons (Browning spective, any requirement that a purchaser amounts to a grave neglect of respon­ be a member of any particular organization. t~.utomatic rifles and M- 2 carbines) will be sibility on his part. retained for contingency purposes and po­ Again, we appreciated the opportunity to WHY NOT THE BEST, MR. CARTER? meet with you and are prepared to work with tential foreign military sales. It is a matter of record that the Soviet 2. M- 1 rifles and M-1 carbines will not be you in the future on this matter. Sincerely, Union has gained superiority over the demilitarized. The M-1 's will be preserved United Slbates throughout its mHitacy for use by the ROTC, Veterans' Organiza­ RICHARD J. DAVIS, tions, Directot of Civilian Marksmanship Assistant Secretary branches. Now, in open olympic competi­ (DCM) Sales Program and for contingencies. (Enforcement and Operations). tion as well as in military training areas, 3. The quantity of M-1 rifles offered for GUN CONTROL POLITICS RUNS RAMPANT IN the U.S.S.R. is surpassing us. They have sale in 1978 will be 1200, a combination of CARTER ADMINISTRATION amassed a cadre of civilian marksmen the 600 per year rates for 1977 when no rifles While there is no doubt in my mind through their own marksmanship pro­ were sold and for 1978. The numbered offered that Mr. Davis of the Treasury Depart­ gram which numbers in the millions. for sale in subsequent years will be 600 per Our civilian marksmen are estimated at year. (Emphasis mine.) ment has opinions that deserve discus­ sion, I reject the notion that his per­ fewer than 150,000. 4. The requirement that that applicants. for purchase of M-1's establish competition sonal views on alleged evils of firearms It is difficult for those of us who have status has been retained. A review of current ownership should supercede those of the worked for strengthening our military, applications indicates that approximately 75 Congressional committee conducting to see leaders in our government col­ percent of the applicants have achieved the oversight over the Civilian Marksman­ laborating to kill this Nation's only gov­ "competitor" criterion. The purpose of this ship Program, and of that program's ernmental sponsored civilian marksman­ requirement is to insure that those who are governing board. The belief that a small ship program. Why not the best, Mr. sold rifles have a serious intent to use them supply of firearms to civilians for the Carter?e for marksmanship. purpose of improving shooting com­ 5. The price at which M-1 rifles will be sold petency could undermine efforts by the 1s at cost to the government. Section 4308, TESTIMONIAL FOR ALBERT L. Title 10 U.S. Code provides for the sale of Treasury Department to control crime arms to members of the National Rifle As­ is even more preposterous than the be­ SCHENONE, RETIRING POSTMAS­ sociation "at cost." The term "at cost" has lief that the recently rejected B.A.T.F. TER, UNION CITY, N.J. been interpreted to mean original cost plus gun control scheme would stop illegal packaging, handling and ma111ng (approxi­ firearms flow. mately $112,000 total). HON. HAROLD C. HOLLENBECK The Treasury Department and various OF NEW JERSEY The DCM Sales Program wlll be reviewed police agencies have available for their annually to consider National Board for the IN THE HOUSE OF REPRESENTATIVES use a firearms tracing center in the U.S. Promotion of Rifle Practice recommendations Tuesday, August 1, 1978 for annual sales and the conduct of the pro­ Army Armament Readiness Command. gram. The Board w111 report their program Serial numbers of every one of the arms e Mr. HOLLENBECK. Mr. Speaker, the· recommendations to you upon your request. used in the program are maintained at newspapers have been filled, in recent Sincerely, that Rock Island, Ill. installation. weeks, with news of the Postal Service CLIFFORD L. ALEXANDER, Jr. Criminal record checks are made on and its employees. We have heard that every applicant before purchase of the The decreased sales recommendation there may be a postal strike. We have surplus arms. Qualification requirements also heard, from some, that postal em­ by Secretary Alexander on April 26 placed upon the civilian marksmanship ployees are mean, greedy people, who duplicates precisely the recommendation applicants by far exceed the require­ care only for themselves. This is simply by Assistant Secretary of the Treasury, ments imposed by Congress upon other not true of the overwhelming majority Davis. Still maintaining his opposition to civilian firearms commerce. of men and women who work for the all sales of military surplus weapons to Yet the Treasury Department, who u.s. Postal Service. I cannot think of civilians, Davis advised Undersecretary polices non-military sales has the auda­ better proof of that statement than Mr. of the Army Walter LaBerge as follows: city to dictate quantities of arms used Albert L. Schenone, who will retire to- August 1, 1978 EXTENSIONS OF REMARKS 23813 morrow after 12 years as Postmaster for ment, and no measure, no matter how tactics of some pro-lifers, but that Newsweek despicable, was beyond their low minded makes that bold assertion without proving Union City, N.J., which is in my district. the charges. Prior to becoming Postmaster. Mr. capacities. They burned churches, as­ In an article on the Hyde Amendment, Schenone was a successful businessman saulted rectories and convents, spread which restricts the use of public funds for in Union City. He brought to the Union the most vile and fantastic tales about abortions, the February Congressional Quar­ City post office the same dedication and the priests and nuns, and engaged in a terly placed an asterisk next to the name of ability he displayed in running his own bigotry which in rhetoric put to shame Catholic senators and congressmen. No business. He was a capable and dedicated the Ku Klux Klan itself and that took others were designated by faith. some doing. It is fair to say, as historians Catholic congressman Robert K . Dornan man, who always did his very best to (R-Calif.) maintains the article attacked the see that his couriers were never stayed judge, that anti-Catholic bigotry in integrity of Catholic legislators by implying from their appointed rounds. America rivaled, in intensity, the worst they voted for the amendment simply out He was also a warm, loving, and dedi­ excesses of anti-Semitism and racism. of religious affiliation. Ignore history, said Cicero, and we are cated human being. He gave himself to 'RIPPING OFF' THE CATHOLICS others, working as a volunteer for the bound to repeat it. It is sad to reftect But more serious than these attacks on the American Cancer Society. that no Catholic seemed to have a chance Church's pro-life stance are recent findings at the Presidency until John F. Kennedy When Albert Schenone retires to Flor­ by the U.S. Department of Labor that won election in 1960. Before that time, "Catholics continue to be excluded from ida with his wife Vinnie, he can do so we had the humiliating experience of see­ executive, middle-management and other job with the sure and certain knowledge ing AI Smith, one of the finest products of levels because of discrimination based on that he has served his country, his em­ the Democratic Party, subjected to the their religion. ployer, and his friends well. It will be a most venomous anti-Catholic propa­ In his book An Ugly Little Secret, sociol­ retirement that he richly deserves. ganda. It is revolting to those of us of ogist Andrew Greeley cites statistics which Also, Mr. Speaker, I would like to ac­ he interprets as suggesting "a systematic the Catholic faith that, on occasion, this underrepresentation of Catholics in elite knowledge the recent retirement of Al­ spectre should appear once again, clothed positions in American society." vin Dietz, who left the Postal Service 2 in modern attire, but exhibiting the very Father Greeley charges, for example, that weeks ago after 34 years in rain, snow, same vicious characteristics. Such ignor­ Catholics are "virtually invisible on the fac­ heat and hail, 25 years of that on the ance, prejudice, and bigotry have no ulties of the great private universities," al­ same route. He too, like Mr. Schenone, place in America. It is hard enough for though they may hold teaching posts at has given all Postal Service employees, us to try to resolve the many difficult State or community colleges. The 1975 Ladd­ and the rest of us as well, an example to questions that come before us, without Lipset survey backs up this claim; Catholics look to. To both of these men, I extend comprise 25 percent of the population but this poison entering the body politic. only 10 percent of the faculties of major my thanks and congratulations.• Mr. Speaker, I should like to insert a universities. recent editorial on the subject from the "Were the underrepresented group black, latest edition of Saint Anthony's Mes­ brow:'l, red or female, there would be an im­ senger: mediate outcry," Father Greeley asserts. A REBIRTH OF KNOW NOTHINGISM .ANTI-CATHOLICISM HURTS ALL AMERICANS Catholics are also slammed in the enter­ tainment media. In "Looking for Mr. Good­ President Jimmy Carter has been attempt­ bar," it is implied that the heroine is pro­ ing to show "sensitivity and awareness of miscuous because of her repressive Catholic HON. ROBERT K. DORNAN Catholics" in order to win their support, upbringing. And film reviewer James Arnold OF CALIFORNIA according to White House reporter Laurence wrote that the assets of Saturday Night McQuillan (see page 12). IN THE HOUSE OF REPRESENTATIVES l"ever were "overwhelmed by stupid stereo­ Being wooed by Carter, however, should typing of the hero's Catholic family and the Tuesday, August 1, 1978 not blind Catholics to the anti-Catholic problems of his ex-priest brother." He called sentiments that surface in American life. the film "AN INFURIATING RIP-OFF of • Mr. DORNAN. Mr. Speaker, one of the Defamation and discrimination are some­ Catholic ethnics." blackest periods of American history was times blatant, but more often subtle and that which shortly followed the arrival of maybe even unintended. Research on the HOW SHOULD CATHOLICS REACT? hundreds of thousands of Irish immi­ causes and dimensions of such prejudice is Two extremes must be avoided: overreac­ grants into the United States. Fleeing needed. In the meantime, Catholics should tion or paranoia, seeing a Catholic-hater in the ravages of famine, vicious discrim­ not let false statements pass without chal­ every opponent to tuition tax-credits; and lenge. The following are recent incidents in unthinking dismissal of any charges of anti­ ination, and political oppression, hun­ point. Catholicism. Compared with the suffering of dreds of thousands of Irish immigrants the Jews during the Holocaust or blacks' arrived looking forward to the "land of ' THEY'RE BURNING DOWN THE CLINICS' 200-year struggle against racism, a ·rew less opportunity" where they might live, Blatant anti-Catholicism appeared in a Catholics on Wall Street or a bigoted movie work, and achieve the recognition that pro-abortion press kit mailed in April by or cartoon are not worth getting upset about. was forbidden them in their native land. Chicago Area Planned Parenthood. The kit Yet for our government to work best, all contained "background material" and five citizens must be free to use their talents and Into Boston, New York, and Philadel­ vicious cartoons, three of which were contribute their moral insights. If unrecog­ phia they came, bringing with them the specifically anti-Catholic. nized prejudice bars a scholar from a uni­ precious few belongings they were able "They're burning down the clinics," the versity faculty, everyone loses. If debate on to carry on steerage. But when they ar­ text says of Catholics, illustrating the charge the funding of education is clouded by hid­ rived, instead of being greeted in friend­ with a drawing of a bishop holding matches den prejudice, the nation's children lose. If ship, they found themselves the object of and a can of gasoline. And it warns that the the credibility of a whole segment of citizens a cold hatred and derision. On numerous bishops, "elderly men" who "simply cannot is falsely undermined, views will not be hon­ sidewalks and on the doors of numerous deal rationally with six," are trying to impose estly exchanged, to the detriment of mutual places of employment, they found the in­ their morality on others. respect and possible concensus. Apologies for the kit were issued by Rabbi Marc Tannenbaum, director of in­ famous placard "No Irish need apply.'' Planned Parenthood spokespersons, who terreligious affairs for the American Jewish Mr. Speaker, they were not simply themselves recognized the bigotry involved Committee, sees the issue of anti-Catholic victims of ethnic prejudice. They were and said the kits were mailed without their bigotry as "of moral and sociological im­ victims of religious intolerance, the very knowledge. portance to the future of Lmerican demo­ death of a free and open society. The The cover story in the June 5 Newsweek cratic pluralism." He proposes a plan of most vile tales and suspicions among reports the burning of abortion clinics in action: the American population were sown by Ohio, Nebraska and Minnesota, and incidents "First," urges Rabbi Tannenbaum, "Cath- the so-called native Americans, who of poisoning the dog and harassing the chil­ olic authorities ... hav·e to decide themselves dren of an Arizona doctor who performs that they are not going to tolerate passively declared an open war against the Cath­ abortions. Those responsible, says Newsweek, any further manifestations of anti-Catholi­ olic faith and tried to do everything pos­ justify such violence and property destruc­ cism, either elitist or popular. sible to insure that Roman Catholics' tion "on moral grounds" and are "backed by "Second," he says, "they will need to in­ in America would enjoy nothing more the authority and money of the Catholic vest organizational and financial resources than a second class citizenship. The Church." to assemble data about anti-Catholic dis­ anti-Catholic movement in America be­ The issue here is not honest differences of crimination .. . and make the case I believe came known as the know nothing move- opinion on abortion or the morality of the can and should be made." 23814 EXTENSIONS OF REMARKS August 1, 1978 Work has already been done by the Cath­ people just like yourselves working through tion); the Committee on Government Opera­ olic League for Religious and Civil Rights, Congressmen, like me, who will not let the tions (sening on the Subcommittee on Leg­ but the interest and attention of all Cath­ world forget that the spirit of freedom and islation and National Security, and the Sub­ olics are needed. By study and appropriate dignity flames .bright among Serbs despite committee on Conservation, Energy and Na­ steps against anti-Catholicism, we can help the Communist domination of. Yugoslavia. tural Resources); and the Joint Economic everyone.-J .D.e The Congress knows of the great Serbian Committee (serving on its Subcommittees on tradition of freedom and self determination. Economic Growth, Fiscal Policy, Interna­ The Congress knows of the centuries old tional Economics, Consumer Economics, En­ struggle of Serbians to throw off the shackles ergy, and is Chairman of its Urban Affairs of domination and realize national inde­ Subcommittee). MOORHEAD MAIN SPEAKER AT pendence. Congressman Moorhead is a well respected SERBIAN NATIONAL FEDERATION The Congress knows of the strong sense of and well regarded governmental official and DAY IN PITTSBURGH Serbian community pride, family strength, as a gentleman, in Pittsburgh and in Wash­ and religion. ington, D.C.--our nation's capitol. It was barely three weeks ago when the floors of Congress thundered with speeches We look forward to his visit.e HON. WILLIAM S. MOORHEAD memorializing the Battle of Kosovo and OF PENNSYLVANIA celebrating St. Vitus Day. IN THE HOUSE OF REPRESENTATIVES This historic battle, fought on June 15, 1389, but celebrated on June 28 under the Tuesday, August 1, 1978 Gregorian calendar, epitomizes the Serbian RESOLUTION ON THE REPUBLIC OF • Mr. MOORHEAD of Pennsylvania. Mr. national spirit to remain alive and vibrant CHINA despite the position of Serbia as a national Speaker, recently I had the distinct battleground for the Turkish, Austrian, and honor and pleasure to be the main speak­ latter Russian empires. er at the Serbian National Federation As is often the case in history, the Serbian HON. ROBERT K. DORNAN Day, held at Pittsburgh's Kennywood defeat at Kosovo served to strengthen the OF CALIFORNIA Park. courage and resolve of the Serbian people IN THE HOUSE OF REPRESENTATIVES The Serbian-American community has dedicated to the preservation of their cul­ ture, their sense of community, and their Tuesday, August 1, 1978 added immeasurably to the cultural rich­ national aspirations. ness of our area with its strong religious, As with so many other ethnic and national • Mr. DORNAN. Mr. Speaker, students family, and na~ional ties. groups, the people of Serbia are waging a of international politics agree that the Still desirous, as they should be, of heroic struggle for the full realization of the international system is in the throes of reclaiming their independence from the ideals embodied in the Spirit of Kosovo. profound change. It is not yet clear Yugoslavian Government, American It is this spirit that one most identifies where this shifting of power and al­ Serbs are indomitable in spirit and with the Serbian American community and it liances will take us, but we can be sure united in cause. is this spirit which I see evident before me that this transformation will have a last­ I would like to include in the CoNGRES­ tonight. ing impact on the position of the United SIONAL RECORD at this time a text of my In closing let me just reaffirm my unyield­ States as a leader of the free nations of remarks as well as an article which ap­ ing support for you and for your brethren the West. In our assessments as policy­ peared in the American Srbobran, Pitts­ still in Yugoslavia. makers, we muc;t be sure that we avoid a narrow view of our interests. Perhaps burgh's Serbian community newspaper. U.S. CONGRESSMAN 3 PITT DAYS SPEAKER ADDRESS OF CONGRESSMAN MOORHEAD AT one of the most legitimate criticism of U.S. Congressman, William S. Moorhead, American foreign poli.cy, made by our SERBIAN NATIONAL FEDERATION DAY (D.-Pa.), has graciously accepted the in­ Good evening, I've always believed that the vitation to attend the forthcoming 3 Pitt friends, is that we all too often view for­ best talk from a public official is a short one Serb Days, and will be a Main Speaker on eign relations in terms of immediate and that's exactly what I will make. Friday, July 21, 1978 at !{:ennywood Park. crises, without taking into consideration When my good friend Bob Stone asked me Rep. William S. Moorhead, Democrat, of the longer, historical view. Such is cer­ to appear tonight, I jumped at the oppor­ the 14th Congressional District of Penn­ tainly not the case with our adversaries. tunity to join him and you tonight. sylvania, whose constituency is located in Certainly, this is not the case with the The Serbian American community in the heart of the Pittsburgh area, is a native revolutionary warlords who rule main­ Pittsburgh ha.s added immeasurably to the of the city. land China. fabric of our local culture with its deep tradi­ He was born there on April 8, 1923, and is tion and strong sense of family. Serbian an attorney by profession. Which brings me to my central point. sweat, hard work and muscle breathed life China is increasingly playing a major into the image of the Pittsburgh area as During World War II, was commissioned role in our calculations with respect to diverse, colorful and strong. Lieutenant (j.g.) and served in the Navy aboard a destroyer in a Pacific task force. Soviet political, diplomatic, and military In keeping with the spirit and fun of initiatives. There is much talk in the Serbian Day at Kennywood Park, I want to Mr. Moorhead attended Shady Side Acad­ keep my remarks positive and upbeat. And I emy in Pittsburgh, Phillips Andover Acad­ media, in academic journals, and among believe that my message tonight will be good emy, and received his BA from Yale Univer­ specialists in foreign policy of the via­ news for Serbians everywhere. sity in 1944. In 1919 following war service, bility of the so-called China card. The Each year the Congress of the United he was graduated cum laude from Harvard proponents of this strategy view a States deals with hundreds of issues of Law School. He was awarded an honorary strengthening of U.S. ties with the Com­ degree of LLD from Duquesne University monumental importance. As a Member of munist regime on the mainland ~s an the United States House of Representatives, in 1965. essential element in the construct n of who represents may of the people here to­ He is married to the former Lucy Galpin a new balance of power. Not since enry night, I can tell you that the plight of and they have three sons and one daughter. Kissinger departed his State Department Serbian people still shackled by the totali­ Congressman Moorhead served as an As­ tarian government of Yugoslavia is a subject sistant City Solicitor of the City of Pitts­ Office have we more clearly discerned the in the forefront of congre>sional concerns. It burgh from 1954 to 1957 and was a member Metternichian strains of a nragmatic has never been lost in the rush of congres­ of the Allegheny County Housing Authority foreign policy. Some view Communist sional business. from 1956 to 1958. China as a formidable threat to Soviet Not a year passes when dozens of bills are He is a member of the American Legion, power in the Far East and thus a re­ introduced calllng attention to the "captive AMVETS, and Veterans of Foreign Wars. straining rresence on Soviet military nations" and the brave people dominated Mr. Moorhead was elected to the 86th Con­ ambitions in Europe. by the Russian Bear and its cohorts. gress on November 4, 1958, and since re­ Others view a "normalization" of re­ Bills to create special committees to ex­ elected many times. He is a member of the amine the problems of Eastern Europe, and lations with Peking as an inevitable Committee on Banking, Currency and Hous­ development in the process of modern especially those of your own peou)e the ing (serving on its Subcommittee on Housing largest single ethnic group in Yugosiavia, and Community Development, Subcommit­ international politics, a coming of age of regularly are introduced in Congress. tee on International Trade, Investment and both China and the United States a.s This rush of congressional support and Monetary Policy, Subcommittee on Financial world powers with common interests. care for the brave and proud Serbian people Institutions Supervision and is Chairman of Their mutual cooperation is essential has been kept alive, 1n large measure, by its Subcommittee on Economic Stab1Iiza- and beneficial to the stability of the in- August 1, 1978 EXTENSIONS OF REMARKS 23815 ternational system and the peace of the Leaning in favor: 1. Whitehurst, Wiggins, Wilson, B. (Cal.), Wil­ Total: 6. son, C. H. (Cal.), Won Pat, Wydler, Yatron, world. No response/no position/undecided: 180. Young (Fla.), Young (Alaska), Young, Rob Mr. Speaker, I do not share this view. Refuse to answer poll: 6. (Mo.), Zablocki, Zeferetti. Though I do understand and appreciate Total respondents: 437. Democrats : 111. the sincerity of those who espouse it. "The poll results were more dramatic than Republicans: 110. I still believe the interests of the West I expected," commented ACU Chairman Would the Congressman support normaliz­ will be determined by the political, Congressman Phil Crane (R-Ill.). "Amaz­ ,ing relations with the People's Republic of economic, and military strength of the ingly, only six House Members stated for the China if the U.S. would have to sever dip­ record that they were in favor or leaning in lomatic ties and abrogate our Mutual De­ free nations of the world, and not in fense Treaty with the Republic of China: some unholy alliance with Communist favor of recognition under Peking's terms. China. It is nevertheless true that the Any attempt by President Carter to recognize LEANING NO'S Peking at the expense of Taiwan will surely Anderson (Til.), Annunzio, Ashley, AuCoin, security of the free nations of the world be met with fierce and stiff opposition by a Baldus, Bedell, Bevlll, Boland, Brown (Calif.), requires a global policy. Gen. Douglas majority in the House of Representatives. Chappell, Coleman, Corman, Coughlin, Dick­ MacArthur was surely correct when he "The results of the poll are clear: Congress inson, Florio, Ford (Mich.), Fraser. remarked: and the American peo!Jle will not accept a Gonzalez, Howard, LaFalce, Le Fante, Lloyd The issues are global and so interlocked sell-out by our government of our faithful (Calif.), Lundine, Mahon, Mineta, Mitchell that to consider the problems of one sector, friend and ally, the Republic of China on (N.Y.), Moakley, Montgomery, Pease, Pritch­ oblivious to those of another, is to court Taiwan," Crane continued. "This poll is only ard, Ryan, Taylor, Weaver, Wirth. disaster for the whole. the opening salvo in a major campaign that Democrats: 28. ACU is launching to combat any move bv Republicans: 6. The opening of full diplomatic rela­ the Carter Administration to recognize REFUSE TO ANSWER Peking at the expense of Taiwan. Once the tions with Communist China may come. Flowers, Holtzman, Marks, de Ia Garza, American people have been aroused on this But what will be the terms of this ar­ Gaydos, Winn. rangement? On whose conditions are issue, President Carter will find it to be Democrats: 4. these arrangements to be made? In my politically impossible to follow through on Republicians: 2. own view, the abandonment of the Re­ his morally bankrupt China policy," Crane YES concluded. pubac of China and the abrogation of The complete results of the ACU poll are Conyers, Kastenmeier, Whalen, Cornell, our defense agreements with that great as follows: Richmond. nation is not a fitting condition for open­ Would the Congressman SU!Jport normal­ Democrats: 4. ing relations with Peking. izing relations witih tlhe People's Republic of Republicians: 1. Tomorrow, I will be introducing a res­ China if the U.S. would have to sever diplo­ LEANING YES olution specifying the sense of this House matic ties and abrogate our Mutual Defense Meyner (D). on the subject. It will provide that, re­ Treaty with the Republic of China: Would the Congressman support normaliz­ NO'S ing relations with the People's Republic of gardless of any normalization or rela­ China if the U.S. would have to sever diplo­ tions with the People's Republic of Abdnor, Addabbo, Akaka, Ammerman, matic ties and abrogate our Mutual Defense China, the United States will maintain Anderson (Calif.), Andrews (N.D.), Apple­ Treaty with the Republic of China: full diplomatic relations with the Re­ gate, Archer, Armstrong, Ashbrook, Aspin, Badham, Bafalis, Barnard, Bauman, Beard UNDECIDED/ NO RESPONSE public of China on Taiwan and main­ (R.I.), Beard (Tenn.), Bennett, Biaggi, Alexander, Ambro, Andrews of North Caro­ tain, in all its integrity, the Mutual De­ Blanchard. lina, Baucus, Beilenson, Benjamin, Bingham, fense Treaty with the Republic of China, Blouin, Boggs, Bowen, Brademas, Breckin­ Bolling, Bonior, Banker, Breaux, Brinkley, signed in 1954. ridge, Broomfield, Brown (Mich.), Brown Brodhead, Brooks, Burke of Massachusetts, I was heartened by a recent poll of (Ohio), Broyhill, Buchanan, Burgen<>r, Burke of California, Burlison, J. Burton, P. Members of this House, conducted by Burke (F'la.), Burleson, Butler, Byron, Ca­ Burton, Carney. puto, Cederberg, Clausen, Clawson, Cleve­ Carr, Carter, Cavanaugh, Chisholm, Clay, the American Conservative Union. It land, Cohen, Collins (Ill.). Cochran, Conable, Conte, Corrade., Cotter, signifies rejection of Peking's conditions Collins (Tex.), Corcoran, Cornwell, Crane, Danielson, Davis, Delaney, Dellums, deLugo, for the establishment of full diplomatic Cunningham, D'Amours, Daniel, D. (Va.), Derrick, Dicks, Diggs, Dingell, Dodd. relations by the overwhelming margin Daniel, R., Dent, Derwinski, Devine, Dornan, Downey, Drinan, Duncan of Oregon, Early, of 211 to 5. Duncan (Tenn.), Eckhardt, Edwards (Ala.), Edgar, Edwards of California, Erlenborn, I insert the story and the enlighten­ Edwards (Okla.), Eilberg, Emery, English, Ertel, Evans of Georgia, Evans of Indiana, Evans (Del.), Fenwick, Fish, Fithian. Evans of Colorado, Fary, Fascell, Fauntroy, ing accompanying poll in the RECORD: Flood, Flynt, Foley, Ford (Tenn.), Foun­ Findley. Fisher, Flippo. Forsythe, Fuqua. VAST MAJORITY IN HOUSE OPPOSE RECOGNI­ tain, Fowler, Frenzel, Frey, Gammage Gep­ Garcia, Giaimo, Gibbons, Gilman, Glick­ TION UNDER PEKING'S TERMS-REAFFmM hardt, Ginn, Goldwater, Goodling Gradison, man, Gore, Gudger, Hamilton, Hanley, Hark­ SUPPORT FOR FREE CHINA Grassley, Green, Guyer, Hagedorn. in, Harrington, Harris, Harsha, Hawkins, WASHINGTON, D.C.-A poll conducted by Hall, Hammerschmidt, Hannaford, Hansen, Heckler, Holland, Hollenbeck, Ireland, Jenk­ the American Conservative Union this week Hefner, Heftel, Hightower, Hillis, Holt, Hor­ ins, Johnson (Calif.). indicates 245 Members of Congress are ton, Hubbard, Huckaby, Hughes, Hyde, Johnson (Colo.), Jones (Okla.), Jordan, against or leaning against recognizing the !chord, Jacobs, Jeffords, Jenrette, Jones Kazen, Keys, Kildee, Kostmayer, Krebs, People's Republic of China if it means that (Tenn.), Jones (N.C.). Leach, Lederer, Leggett, Levitas, Lloyd the United States would have to terminate Kasten, Kelly, Kemp, Kindness, Krueger, (Tenn.), Long (Md.), Long (La.), Luken, diplomatic relations and the Mutual Defense Lagomarsino, Latta, Lehman, Lent, Livings­ McCloskey, McDade, McFall, McHugh. treaty with the Republic of China on Taiwan. ton, Lott, Lujan, McClory, McCormack, McKinney, Maguire, Markey, Mazzoli, Only 6 Congressmen are in favor of estab­ McDonald, McEwen, McKay, Madigan, Mann, Meeds, Metcalfe, Milford, Miller (Calif.), lishing relations with Communist China Marlenee. Mitchell (Md.), Moffett, Moorehead (Pa.), under these conditions. 180 were undecided Marriott, Martin, Mathis, Mattox, Michel, Moss, Murphy (Pa.), Murphy (N.Y.), Murtha, or could not be reached by the ACU pollsters. Mikulski, Mikva, Miller (Ohio) , Mini-,h, Myers, M. (Pa.), Natcher, Nichols, Nolan. The telephone poll was conducted by ACU's Mollohan, Moore, Moorehead (Cal.) , Mottl, Nowak, Oakar, Oberstar, Obey, O'Brien, legislative division between July 17-27. The Murphy (Ill.), Myers, G. (Pa.), Myers (Ind.), O'Neill, Ottinger, Patterson, Pattison, Pep­ question that ACU asked each Congressional Neal. Nedzi, Nix. per, Perkins, Pike, Po::1ge, Price, Pursell, Ralls­ office was: "Would you support normaliza­ Panetta, Patten, Pettis, Pickle, Pressler, back, Rangel, Regula, Rinaldo, and Risen­ tion of relations with the People's Republic Preyer. Quayle, Quie, Quillen, Rahall, Reuss, hoover. of China if it meant that the United States Rhodes, Roberts, Robinson, Rogers, Rose, Rodino, Roe, Roncalio, Rooney, Roybal, would have to sever full diplomatic ties with Rosenthal, Rostenkowski, Rowoselot, Rudd, Ruppe, Russo, Sarasin, Scheuer, Schulze, Sei­ Republic of China and abrogate our Mutual Runnels, St Germain. berling, Sharp, Slack, Smith (Iowa), Solarz, Defense pact with that country." Of the 435 Santini, Satterfield, Sawyer, Schroeder, Spellman, Spence, Staggers, Stark, and Steed. Members of the House of Representatives Sebelius, Shipley, Shuster, Sikes, Simon, Stokes, Studds, Teague, Thornton, Trax­ and four Delegates that ACU reached, the Sisk, Skelton, Skubitz, Smith (Neb.), Snyder, ler, Tucker, Udall, Ullman, Van Deerlin, results were: Stangeland, Stanton, Steers, Steiger, Stock­ Vanik, Waggonner, Walsh, Waxman, Weiss, Whitley, Whitten, Wilson, C. (Tex.), Wolff, Against: 211. man, Stratton, Stump. Wright, Wylie, Yates, Young, (Tex.). Leaning against: 34. Symms, Thompson, Thone, Treen, Trible, Total: 245. Tsongas, Vander Jagt, Vento, Volkmer, Wal­ Democrats: 153. In favor: 5. gren, Walker, Wampler, Watkins, White, Republicans: 27.a